Company: PCAP
Filing Date: 2025-05-22
Form Type: 424B4
Source: 0001213900-25-046580
Chunk: 123

Company: ProCap Acquisition Corp
Filing Date: 2025-05-22
Form: 424B4
Chunk 123
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 founder shares would automatically convert into Class A ordinary shares upon completion of our initial business combination or earlier at the option of the holder. Based on these assumptions, each Class A ordinary share would have an implied value of $7.52 per share upon completion of our initial business combination, representing an approximately 24.9% decrease from the initial implied value of $10.00 per public share. While the implied value of $7.52 per Class A ordinary share upon completion of our initial business combination would represent a dilution to our public shareholders, this would represent a significant increase in value for our sponsor relative to the price it paid for each founder share. At $10.00 per Class A ordinary share, the 5,930,000 Class A ordinary shares that the sponsor would own upon completion of our initial business combination (after automatic conversion of the 5,500,000 founder shares and the Class A ordinary shares underlying the private placement units) would have an aggregate implied value of $59,300,000. As a result, even if the trading price of our Class A ordinary share significantly declines, the value of the founder shares held by our sponsor would be significantly greater than the amount our sponsor paid to purchase such shares. In addition, our sponsor could potentially recoup its entire investment in our company even if the trading price of our Class A ordinary shares after the initial business combination is as low as $1.45 per share. As a result, our sponsor is likely to earn a substantial profit on its investment in us upon disposition of its Class A ordinary shares even if the trading price of our Class A ordinary shares declines after we complete our initial business combination. Our sponsor may therefore be economically incentivized to complete an initial business combination with a riskier, weaker -performingor less -establishedtarget business than would be the case if our sponsor had paid the same per share price for the founder shares as our public shareholders paid for their public shares in this offering. This dilution would increase to the extent that the anti -dilutionprovisions of the founder shares result in the issuance of Class A ordinary shares on a greater than one -to -onebasis upon conversion of the founder shares at the time of our initial business combination and would become exacerbated to the extent that public shareholders seek redemptions from the trust for their public shares. In addition, because of the anti -dilutionprotection in the founder shares, any equity or equity -linkedsecurities issued in connection with our initial business combination would be disproportionately