Company: NKLR
Filing Date: 2025-11-10
Form Type: S-1
Source: 0001213900-25-108246
Chunk: 237

Company: Terra Innovatum Global N.V.
Filing Date: 2025-11-10
Form: S-1
Chunk 237
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 the issued and outstanding voting securities of the target or otherwise acquires a controlling interest in the target business sufficient for it not to be required to register as an investment company under the Investment Company Act of 1940, as amended (the “Investment Company Act”).

The Company is required to
provide its Class A ordinary shareholders with the opportunity to redeem all or a portion of their public shares upon the completion of
the Business Combination either (i) in connection with a shareholder meeting called to approve the Business Combination or (ii) by means
of a tender offer.

All of the Class A ordinary
shares sold as part of the units in the initial public offering contain a redemption feature which allows for the redemption of such public
shares in connection with liquidation, if there is a shareholder vote or tender offer in connection with initial Business Combination
and in connection with certain amendments to second amended and restated memorandum and articles of association. In accordance with SEC
guidance on redeemable equity instruments, redemption provisions not solely within the control of a company require ordinary shares subject
to redemption to be classified outside of permanent equity. Accordingly, all of the Public Shares were presented as temporary equity,
outside of the shareholders’ deficit section of the Company’s balance sheet. Given that the Class A ordinary shares sold as
part of the units in the offering were issued with other freestanding instruments, the initial carrying value of Class A ordinary shares
classified as temporary equity were the allocated proceeds determined in accordance with ASC 470-20. The accretion or remeasurement is
recognized as a reduction to retained earnings, or in absence of retained earnings, additional paid-in capital. Accretion associated with
the redeemable Class A ordinary shares is excluded from earnings per share as the redemption value approximates fair value.

Each public shareholder may
elect to redeem their public shares without voting and, if they do vote, irrespective of whether they vote for or against the proposed
transaction. In addition, initial shareholders, directors and officers have entered into a letter agreement, pursuant to which they have
agreed to waive their redemption rights with respect to any founder shares and public shares held by them in connection with the completion
of a Business Combination.

Notwithstanding the foregoing,
the Company’s Second Amended and Restated Memorandum and Articles of Association provides that a Public Shareholder, together with
any affiliate of such shareholder or any other person with whom such shareholder is acting in concert or as a “group” (as
defined under Section 13 of