Company: SIMA
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-109984
Chunk: 30

Company: SIM Acquisition Corp. I
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 30
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.

Similarly, if we issue debt
securities or otherwise incur significant debt to bank or other lenders or the owners of a target, it could result in:

●default
and foreclosure on our assets if our operating revenues after an initial Business Combination are insufficient to repay our debt obligations;

●acceleration
of our obligations to repay the indebtedness even if we make all principal and interest payments when due if we breach certain covenants
that require the maintenance of certain financial ratios or reserves without a waiver or renegotiation of that covenant;

17

●our
immediate payment of all principal and accrued interest, if any, if the debt security is payable on demand;

●our
inability to obtain necessary additional financing if the debt security contains covenants restricting our ability to obtain such financing
while the debt security is outstanding;

●using
a substantial portion of our cash flow to pay principal and interest on our debt, which will reduce the funds available for expenses,
capital expenditures, acquisitions and other general corporate purposes;

●limitations
on our flexibility in planning for and reacting to changes in our business and in the industry in which we operate;

●increased
vulnerability to adverse changes in general economic, industry and competitive conditions and adverse changes in government regulation;
and

●limitations
on our ability to borrow additional amounts for expenses, capital expenditures, acquisitions, debt service requirements, execution of
our strategy and other purposes and other disadvantages compared to our competitors who have less debt.

Pursuant to the Amended and
Restated Memorandum, if we are unable to complete the initial Business Combination by July 11, 2026 (24 months from the closing of
the Initial Public Offering) (or such earlier time as determined by our Board) and such Combination Period is not otherwise extended by
shareholders, we will (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible,
but not more than ten business days thereafter, redeem 100% of the outstanding Public Shares at a per share price, payable in cash,
equal to the aggregate amount then on deposit in the trust account, including interest earned thereon (less taxes payable and up to $100,000
of interest income to pay dissolution expenses) and (iii) as promptly as reasonably possible following such redemption, subject to
the approval of the remaining shareholders and the Board, liquidate and dissolve. The Warrants will expire on liquidation of the Trust
Account and the