# EDGAR Filing Document

**Accession Number:** 0001947756
**File Stem:** 0001213900-23-022488
**Filing Date:** 2023-3
**Character Count:** 1467529
**Document Hash:** 2ca58acca3c0f91a3e0ec50e9938b5fe
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-23-022488.hdr.sgml**: 20230323

**ACCESSION NUMBER**: 0001213900-23-022488

**CONFORMED SUBMISSION TYPE**: F-1/A

**PUBLIC DOCUMENT COUNT**: 22

**FILED AS OF DATE**: 20230323

**DATE AS OF CHANGE**: 20230323

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Merqueo Holdings
- **CENTRAL INDEX KEY:** 0001947756
- **STANDARD INDUSTRIAL CLASSIFICATION:** WHOLESALE-GROCERIES & RELATED PRODUCTS [5140]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** E9
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** F-1/A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-269027
- **FILM NUMBER:** 23757035

**BUSINESS ADDRESS:**
- **STREET 1:** CALLE 97A # 9 - 50
- **STREET 2:** PISO 2
- **CITY:** BOGOTA
- **STATE:** F8
- **ZIP:** 110221
- **BUSINESS PHONE:** (00) 3162691178

**MAIL ADDRESS:**
- **STREET 1:** CALLE 97A # 9 - 50
- **STREET 2:** PISO 2
- **CITY:** BOGOTA
- **STATE:** F8
- **ZIP:** 110221

**As filed with the Securities and Exchange Commission on March 23, 2023**

**Registration No. 333**-269027

#### UNITED STATES<br>SECURITIES AND EXCHANGE COMMISSION<br> Washington, D.C. 20549

#### _________________________________

#### Amendment No. 1 <br> to <br>Form F-1<br>REGISTRATION STATEMENT<br> UNDER<br>THE SECURITIES ACT OF 1933
**____________________**

#### MERQUEO HOLDINGS<br> (Exact Name of Registrant as Specified in Its Charter)

#### _________________________________
(Address, Including Zip Code, and Telephone Number, Including Area Code, of Registrant's Principal Executive Offices)

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| | | |
|:---|:---|:---|
|  **Cayman Islands** | **5140** | **N/A** |
|  (State or Other Jurisdiction of<br>Incorporation or Organization) | (Primary Standard Industrial<br>Classification Code Number) | (I.R.S. Employer<br>Identification Number) |

---

**Carrera 11A #93**-52**, Oficina 501**-502**<br>Bogotá D.C., 110221<br>Colombia<br>+57 601 5404058**<br>(Address, Including Zip Code, and Telephone Number, Including Area Code, of Registrant's Principal Executive Offices)

#### Cogency Global Inc.

#### 122 E. 42 <sup>nd</sup> Street, 18 <sup>th</sup> Floor

#### New York, New York 10168
**(800) 221-0102**<br> (Name, Address, Including Zip Code, and Telephone Number, Including Area Code, of Agent For Service)

#### _________________________________
***Copies to:***

---

| | |
|:---|:---|
|  **Adam J. Brenneman, Esq.**<br> **Emilio Minvielle, Esq.**<br> **Ashley Miller, Esq.**<br> **Cleary Gottlieb Steen & Hamilton LLP**<br> **One Liberty Plaza**<br> **New York, New York 10006**<br> **(212) 225**-2000****<br>| **Anthony W. Basch, Esq.**<br> **Alexander W. Powell, Esq.**<br> **Chenxi Lu, Esq.**<br> **Kaufman & Canoles, P.C.**<br> **Two James Center, 14**<sup>th</sup> **Floor**<br> **1021 East Cary St.**<br> **Richmond, Virginia 23219**<br> **Telephone: (804) 771**-5700 |

---

**Approximate date of commencement of proposed sale to the public:** As soon as practicable after the effective date of this Registration Statement.

If any of the securities being registered on this form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box. ☐

If this form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933. ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐

____________

† The term "new or revised financial accounting standard" refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.

**The Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until the Registration Statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a), may determine.**

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[**Table of Contents**](#TOC001)

**The information in this prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and is not soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.**

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| | |
|:---|:---|
|  **SUBJECT TO COMPLETION,**  | **DATED , 2023** |

---

**Ordinary Shares**

 **MERQUEO HOLDINGS**<br>

This is an initial public offering of the ordinary shares, U.S.$ par value per share ("Offering") of Merqueo Holdings, or the Company. We are offering ordinary shares to be sold in this Offering. Prior to this Offering, there has been no public market for our ordinary shares. It is currently estimated that the initial public offering price per ordinary share will be between U.S.$ and U.S.$. We intend to list our ordinary shares on the Nasdaq under the symbol "MERQ."

---

| | | |
|:---|:---|:---|
|  | **Per Ordinary <br>Share** | **Total** |
|  Initial public offering price | U.S.$ | U.S.$ |
|  Underwriting discounts and commissions<sup>(1)</sup> | U.S.$ | U.S.$ |
|  Proceeds to us, before expenses | U.S.$ | U.S.$ |

---

____________

(1) See "Underwriters" for additional information regarding total underwriter compensation.

We have granted an option to the underwriter, exercisable for 45 days after the date of this prospectus, to purchase up to additional ordinary shares at the public offering price, less the underwriting discount. The purchase price to be paid per additional ordinary share will be equal to , less the underwriting discounts and commissions. If the underwriter exercises the option in full, the total underwriting discounts and commissions payable will be U.S.$ and the total proceeds to us, before expenses, will be U.S.$.

**We are an "emerging growth company" under applicable federal securities laws and will be subject to reduced public company reporting requirements. Investing in our securities involves a high degree of risk. See "Risk Factors" beginning on page 14 for a discussion of information that should be considered in connection with an investment in our securities. Investors will not be entitled to protections normally afforded to investors in Rule 419 blank check offerings.**

**Neither the U.S. Securities and Exchange Commission (the "SEC") nor any state securities commission has approved or disapproved of these securities or passed upon the adequacy or accuracy of this prospectus. Any representation to the contrary is a criminal offense.**

The underwriter expects to deliver the ordinary shares against payment in New York, New York on or about , 2023, through the book-entry facility of The Depository Trust Company.

Sole Book-Running Manager

**Aegis Capital Corp.**

**Prospectus dated , 2023**

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[**Table of Contents**](#TOC001)

#### **TABLE OF CONTENTS**

---

| | |
|:---|:---|
|  | **Page** |
|  [Prospectus Summary](#T19) | 1 |
|  [Risk Factors](#T18) | 14 |
|  [Special Note Regarding Forward-Looking Statements](#T17) | 47 |
|  [Industry and Market Data](#T16) | 49 |
|  [Use of Proceeds](#T15) | 50 |
|  [Dividend Policy](#T14) | 54 |
|  [Capitalization](#T13) | 55 |
|  [Dilution](#T12) | 56 |
|  [Management's Discussion and Analysis Of Financial Condition and Results of Operations](#T9930) | 57 |
|  [Business](#T11) | 87 |
|  [Management](#T10) | 103 |
|  [Executive Compensation](#T9931) | 109 |
|  [Certain Relationships and Related Party Transactions](#T9) | 112 |
|  [Principal Shareholders](#T8) | 113 |
|  [Description of Share Capital](#T7) | 115 |
|  [Shares Eligible for Future Sale](#T6) | 129 |
|  [Taxation](#T5) | 131 |
|  [Underwriters](#T4) | 135 |
|  [Expenses of the Offering](#T3) | 139 |
|  [Legal Matters](#T2) | 140 |
|  [Where You Can Find Additional Information](#T1) | 141 |
|  [Index to Consolidated Financial Statements](#T1001) | F-3 |

---

You should rely only on the information contained in this prospectus or contained in any free writing prospectus prepared by or on behalf of us or to which we have referred you. We have not, and the underwriter has not, authorized anyone to provide any information or make any representations other than those contained in this prospectus or in any free writing prospectus prepared by or on behalf of us or to which we have referred you. We take no responsibility for, and can provide no assurance as to the reliability of, any other information that others may give you. We are offering to sell, and seeking offers to buy, ordinary shares only in jurisdictions where offers and sales are permitted. The information contained in this prospectus is accurate only as of the date of this prospectus, regardless of the time of delivery of this prospectus or of any sale of the ordinary shares. Our results of operations, financial condition, business and prospects may have changed since such date.

For investors outside of the United States: neither we nor the underwriter have done anything that would permit this Offering or possession or distribution of this prospectus in any jurisdiction where action for that purpose is required, other than in the United States. Persons outside of the United States who come into possession of this prospectus must inform themselves about, observe any restrictions relating to, the offering of ordinary shares and this distribution of this prospectus outside of the United States.

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#### PRESENTATION OF FINANCIAL AND OTHER INFORMATION
We report under International Financial Reporting Standards ("IFRS"), as adopted by the International Accounting Standards Board ("IASB"). Our financial statements were not prepared in accordance with generally accepted accounting principles in the United States. We present our consolidated financial statements in Colombian Pesos, presented as "COP $". References in this prospectus to "U.S.$" refer to U.S. dollars, the official currency of the United States, and references to "BRL" refer to Brazilian real, the official currency of Brazil.

#### Use of Non-IFRS Financial Measures
Certain parts of this prospectus contain the following non-IFRS financial measures: EBITDA, Adjusted Gross Profit and Total Distribution and Logistics Cost. A non-IFRS financial measure is generally defined as a numerical measure of a registrant's historical or future financial performance, financial position or cash flows that: (i) excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with IFRS in the statement of income, balance sheet or statement of cash flows (or equivalent statements) of the issuer; or (ii) includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented.

EBITDA, Adjusted Gross Profit and Total Distribution and Logistics Cost are used by our management to monitor the underlying performance of the business and its operations. We define "EBITDA" as net loss for the year from continuing operations adjusted for income tax benefit (expense), net financial result, net loss on exchange differences, finance expenses, finance income and depreciation and amortization. We define "Adjusted Gross Profit" as gross profit, exclusive of depreciation of right-of-use assets. We define "Total Distribution and Logistics Cost" as all costs associated to the delivery of orders to final customers, from receipt of merchandise to product sorting, product picking, order dispatchment and finally order delivery.

These measures are used by different companies for differing purposes and are often calculated in ways that reflect the circumstances of those companies. You should exercise caution in comparing these measures as reported by us to the same or similar measures as reported by other companies. EBITDA, Adjusted Gross Profit and Total Distribution and Logistics Cost may not be comparable to similarly titled metrics of other companies. These measures are unaudited and have not been prepared in accordance with IFRS or any other generally accepted accounting principles.

EBITDA, Adjusted Gross Profit and Total Distribution and Logistics Cost are not measurements of performance under IFRS or any other generally accepted accounting principles, and you should not consider them as alternatives to operating profit/loss or other financial measures determined in accordance with IFRS or other generally accepted accounting principles. These measures have limitations as analytical tools, and you should not consider them in isolation. We have chosen to present these non-IFRS measures as they are common for other companies in our industry.

#### Corporate events
Merqueo's shareholders executed a corporate reorganization in December 2022 (the "Corporate Reorganization"). For that matter, two Cayman Islands exempted companies, Merqueo Cayman and Merqueo Holdings have been incorporated ("Merqueo Cayman" and "Merqueo Holdings"). Merqueo Cayman and Merqueo Holdings were formed for purposes of this Offering and have, to date, engaged only in activities in contemplation of this Offering. Historically, our business has been operated through Merqueo S.A.S., together with its subsidiaries.

Following the completion of the Corporate Reorganization, Merqueo Holdings is the parent of the operating companies and the issuer of this Offering.

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Following the completion of the Corporate Reorganization, the corporate structure is the following:

![](tflowchart_003.jpg)

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#### Prospectus Summary
*This summary highlights selected information that is presented in greater detail elsewhere in this prospectus. This summary does not contain all of the information you should consider before investing in our ordinary shares. You should read this entire prospectus carefully, including the sections titled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our consolidated financial statements and the related notes included elsewhere in this prospectus, before making an investment decision. Unless the context otherwise requires, the terms "Merqueo," "the company," "we," "us" and "our" in this prospectus refer to Merqueo Holdings and its consolidated subsidiaries.*

#### Merqueo

#### Overview
We are Latin America's first vertically-integrated digital grocery retailer with operations in both Colombia and Brazil. We allow our customers to save time and money on groceries by leveraging proprietary technology and operational excellence to deliver groceries at great prices, and in a scalable way. We define a vertically-integrated digital grocery retailer as a full-stack ecosystem which has end-to-end integrated operations, allowing for full control of the value chain. We are laser-focused on becoming the best and most profitable at-home delivery provider of low-price online supermarket products for price-sensitive consumers in Latin America households. Our unique market positioning as a full-stack, high basket size, 100% scheduled delivery option has proven business results, as we have been able to successfully lower distribution and logistics costs, unlock higher margins, and offer best-in-class user experience, cheaper than other traditional grocery retailers.

Through our mobile apps (iOS and Android) customers can satisfy grocery stock up and fill-in shopping missions while saving time and money. Customers no longer have to go to a physical store and are able to benefit from our full-stack ecosystem to pay less for the household products that they use and love. We offer everything from fresh produce to frozen products, and from house cleaning and personal hygiene to meat and dairy. Since we also serve countries where cash remains a major form of payment, we offer a wide variety of payment options including cash, online payment, credit and debit card payment upon receipt, vouchers and digital wallets, amongst others.

Technology has always been and continues to be at the heart of Merqueo. We design, develop, and operate most of our software and technology in-house, including (1) user facing mobile apps (iOS and Android), (2) fulfillment center technology (including a picking app, fulfillment center app, and inter-warehouse inventory movement app), (3) last-mile delivery app, and (4) customer service and live operations platforms. See "Full-Stack Grocery Delivery Services" for a detailed narrative of our technology applied to our business.

Our user-facing platform is a fully-automated, topically-arranged and user-friendly mobile app. It is a highly scalable platform that provides users with a convenient, safe, and trusted shopping environment. This platform enables us to list merchandise and transact with our customers while allowing customers to shop and schedule deliveries digitally. Our grocery platform has an ample assortment of products spanning the full spectrum of grocery needs.

We negotiate and purchase inventory directly from brands, manufacturers, and local farmers. In some specific cases we purchase inventory from distributors. We have invested significant time developing deep relationships and favorable commercial agreements with more than one hundred suppliers. Once we send the purchase orders, our suppliers deliver the inventory to one of our leased warehouses, which we classify into one of two different types: medium warehouses that measure 2,000 to 3,000 meters and large warehouses that measure 4,000 to 5,000 meters. After the incoming product is received and scanned, it is uploaded in real time to Merqueo's warehouse management system ("WMS"), which immediately updates availability of stock for our users to purchase in our app. In this way, we only display the products that are available to our customers at the time of the purchase, achieving fill rate levels up to 99.7% in Colombia and 98% in Brazil during the year ended December 31, 2022. Fill rate is the average percentage of delivered items over the total items placed by a customer in a given order.

After receiving the products, these are transferred to our storage shelves, where they are organized and sorted according to categories and turnover. In order to make individual products available for picking, these are transferred from the storage to the picking area using in-house technology that prioritizes products according to forecasting and real time demand. Through new developments and enhancement of our picking app, optimization of picking areas (reducing long displacements for pickers), and continuous improvements in planning, we have been able to

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improve our picking in Colombia during the fourth quarter of 2022, from a rate of 50 items per hour per picker (per hour dedicated exclusively to picking) to 245 items per hour per picker on average. This is above the global industry benchmark set by Ocado of 175 units per hour (defined as units dispatched from the customer fulfilment centers per variable hour worked by operational personnel), according to Ocado's full year 2022 results ("Ocado's Full Year 2022 Results"). The items are then batched and ready to be delivered by our third-party service providers directly to our customers' doors.

Our scheduled delivery option is tailored for families and larger households and aims to replace the weekly supermarket shop with a convenient delivery of groceries at a time the customer elects. Scheduled delivery orders can be made as many as four days in advance and as few as three hours ahead of the customer's desired delivery time. They are available to customers within an approximate 12-kilometer radius of a warehouse, at approximately U.S.$1.1 per order in both Colombia and Brazil. Scheduled deliveries accounted for 85% and 87% of our total orders in Colombia and Brazil during the year ended December 31, 2021, respectively. By December 31, 2022, 100% of orders were scheduled deliveries in both countries.

Not only do we sell products produced and marketed by other brands but we also create our own brands, which we call "private label" products. In the third quarter of 2019, in Colombia we began to offer customers private label products, and we currently have one of the most comprehensive private label selections in the Latin American e-grocery market. On December 31, 2022, we had 29 private label brands offering a total of 234 active products. Many of these private label products are ranked in the top tier of sellers within their respective categories in our platform. We control the end-to-end process for creating, designing, registering, procuring, and verifying supplier quality of all of our brands, and will continue building private label brands that are profitable, and that customers love.

#### Market Opportunity
Latin America's e-commerce market is evolving rapidly and increasing numbers of individuals are making purchases on the internet. According to the Institute of Grocery Distribution (IGD), in 2022 the online channel's share in Latin America's grocery market was 1.7%, equivalent to U.S.$7.3 billion. Based on the IGD projections, by 2027 the online channel's share in Latin America's grocery market will be 2.6% (U.S.$15.4 billion), 9.4% (U.S.$437.7 billion) in Asia, and 8.0% (U.S.$163.4 billion) in North America. This growth corresponds to a 15.9% compound annual growth rate ("CAGR") (2022-2027) for Latin America, above North America (10.2%) and Asia (8.3%).

![](timage_001.jpg)

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#### Strengths and entry barriers
We believe that our business is difficult to replicate and poses barriers to entry, helping customers save time and money on groceries. We consider the following barriers to be significant competitive advantages:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our integrated technology connects all our operations in real-time, allowing us to collect useful data, optimize every step, and have superior control over quality and customer experience.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Strong and lasting relationships with local and international suppliers allow us to access better pricing and new business opportunities. We have a portfolio of up to 3,000 Stock-Keeping Units (SKUs) per country. By December 31, 2022, in Colombia 100% of the SKUs were directly negotiated with suppliers, while in Brazil 70% were directly negotiated with suppliers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our optimal warehouse layout and processes have improved over time and work in sync with our specialized technology to enable high inventory turnover, timely deliveries, access to low-cost real estate, and artificial intelligence-driven operation that drives productivity. During the year ended December 31, 2022, our on-time delivery was on average 88.8% in Colombia and 87.2% in Brazil. During the fourth quarter of 2022, one picker picked up to 245 items per hour on average in Colombia and 162 in Brazil. These are above the global industry benchmark set by Ocado of 175, according to Ocado's Full Year 2022 Results.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our robust private label portfolio supports our brand positioning as having high-quality products at low prices. This further drives loyalty and positive customer behavior, as well as improves our financial results. During December 2022, 64% of total orders had at least one private label product.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We have an outsourced but dedicated fleet that uses our in-house last-mile delivery app for route batching and optimization. During the fourth quarter of 2022, in scheduled routes of more than three hours, we delivered in Colombia 3.3 orders per hour per driver on average, which is above the global industry benchmark set by Ocado of 3.14 (equivalent to 176 orders per week per drive assuming 8 hour shifts and 7 work days), based on Ocado's Full Year 2022 Results. In Brazil, during this period, we delivered 2.8 orders per hour per driver on average.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our ads and data platform enables consumer packaged goods ("CPG") brands to better target ads, creating purchase intent and improving customer conversion cycle. As transactions in our platform increase, the quality and value to CPGs of our data increases, generating a long-term cash flow generator. We have been building and improving our data and ads platform over the past years, resulting in tools such as embedded video, and have developed state-of-the-art tools for CPGs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A proven flywheel is coupled with our years of experience controlling the levers that provide momentum for long-term sustainable growth.

#### Our Strategy
We leverage our proprietary technology and operational excellence to change the way people shop for groceries and other home goods in Latin America, delivering our customers high-quality goods at excellent prices, in a profitable way.

We aim to drive long-term sustainable growth by pursuing the following strategies:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***• Relentless focus on our core value proposition.*** We are laser-focused on becoming the best and most profitable at-home delivery provider of low-price online supermarket products for price-sensitive consumers in Latin American households. We serve the markets in which we operate by offering a convenient service, which would have previously been considered a luxury, and providing a selection of relevant products, all at an affordable price. Consumers want affordable groceries delivered to their homes without basing their decision on whether or not they can get it within minutes. We believe the average household is price-driven, not convenience-driven. This is a massive total addressable market (TAM) where achieving strong customer loyalty is much more sustainable than fair-to-middling loyalty across all customer segments. Finally, we do this by focusing 100% on our full-stack grocery delivery model which leverages proprietary technology to manage inventory, deliver traditional supermarket items with full basket size and slotted delivery times, and maximize profit margins.

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With this in mind, we intend to continue to fine-tune our business strategy to capture this market while improving profitability. We also intend to further develop high-margin categories such as alcohol (high ticket size) and fruits & vegetables (high frequency), as well as our private label portfolio. We also aim to continue to develop our digital advertising and sales data solutions to offer CPGs actionable insights through our platform. In order to generate more revenue with marginal cost, we have started pilot strategic alliances with other digital marketplaces that want to offer groceries, but do not have the technology or expertise to deliver. Finally, we intend to keep developing our backlog of tech improvements to further push the boundaries of operational efficiency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Controlled and efficient growth.*** We continue to improve our gross margin through (1) ongoing curation of our SKU portfolio, which includes continuous elimination of any low turnover products, (2) prioritizing private labels focused on the family basket, which allows for better margins, (3) efficient marketing investment using a customer segmentation model that unlocks value by directing subsidies and coupons towards customers that will generate the highest return for us, (4) increasing trade, ads and data revenue, and (5) increasing utilization and efficiency of existing warehouses with new technology developments. Additionally, all of our strategic initiatives support our cash burn reduction goals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Continued focus on technology as a source of profitable growth for our core business.*** We intend to continue to improve customer acquisition and retention, as well as our warehouse and last-mile efficiency, through data analysis and technology. We are developing new features to improve customer acquisition and retention, and to further improve our procurement and fulfillment efficiencies, including: (1) an "easy sharing" button in the app that allows customers to share discounted products, (2) improvements in our recommendation algorithm, (3) a module in our picking app that enables picking in batches, and (4) significant improvements to our forecasting model that positively impact inventory turnover and working capital/cash flow.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Leverage our technology and operational excellence to create value for, and profit from the business to business (B2B) grocery ecosystem.*** Approximately 54% and 70% of the grocery market in Colombia and Brazil, respectively, is sold through the traditional channel ("mom-and-pop" stores), mostly served by a fragmented industry of grocery distributors. While there are significant similarities in the supply, procurement and fulfillment of these distributors with our online business to consumer (B2C) business model, most distributors continue to rely on obsolete third party and off the shelf software that implies a high reliance on manual processes and sub-optimal management of inventory. We intend to benefit from strong synergies between the two businesses, and hope to move toward using our technology to improve distributor operations. By doing so, we will aim to (1) accelerate top line growth, which will support gross margin improvements, (2) significantly increase distributors' warehousing and logistic efficiencies, impacting profitability, and (3) reduce expenses through administrative synergies and more efficient marketing investments as a result of much larger brand presence. All of this is expected to accelerate the path to profitability of our core end-consumer business.

#### Risk Factors Summary
Investing in our ordinary shares involves significant risks. You should carefully consider all of the information in this prospectus before making an investment in our ordinary shares. The main risks set forth below and others you should consider are discussed more fully in the section entitled "Risk Factors", which you should read in its entirety. Before you invest in our shares, you should carefully consider all the information in this prospectus, including matters set forth under the heading "Risk Factors." Some of the more significant challenges and risks relating to an investment in our ordinary shares include those associated with the following:

*Risks Related To Our Business And Industry*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our business depends on the continued growth of online commerce and the availability and reliability of the Internet in Latin America;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The outbreak of COVID-19 may have in the future a negative impact on the global economy and on our business, operations and results;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We operate in a highly competitive and evolving environment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our operations are subject to extensive food quality and safety regulations;

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*Risks Related to Operations*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may fail to maintain or grow the size of our customer base or the level of engagement of our customer base;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We rely on third parties for the delivery. If the services provided by these third-parties become unavailable or unavailable on favorable terms, our business could be adversely affected;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our auditors have made reference to the material uncertainty as to our ability to continue as a going concern, there is no assurance that we will be able to continue as a going concern;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our debt financing agreements contain restrictive covenants. Our failure to comply with applicable debt financing covenants and agreements could have a material adverse effect on our business, results of operations and financial condition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may have inadequate business insurance coverage, which would require us to spend significant resources in the event of a disruption of our services or other contingency;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We have not completed any acquisitions of new business. We may be unable to successfully acquire and integrate suitable businesses. The integration of businesses will present significant challenges that may result in the combined business not operating as effectively as expected or in the failure to achieve some or all of the anticipated benefits of the transactions;

*Risks Related to Intellectual Property*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any delay or problem with operating or upgrading our existing information technology infrastructure could cause a disruption in our business and adversely impact our financial results;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may not be able to secure licenses for technologies on which we rely;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may not be able to adequately protect and enforce our intellectual property rights. We could potentially face claims alleging that our technologies infringe the property rights of others;

*Risks related to Regulatory and Legal Matters*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We are subject to extensive government regulation and oversight. Failure to comply with existing and future rules and regulations in the jurisdictions in which we operate could adversely affect the operations of one or more of our businesses in those jurisdictions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A competitive labor market and changes to wage regulations and other employment and labor laws could have an impact on our future results of operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our business could be affected if some of our contractors or their employees were classified as employees, workers or quasi-employees;

*Risks Related to Access to Capital and Other Financial Matters*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• There are risks associated with our indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may need additional capital but may not be able to obtain it on favorable terms or at all;

*Risk Related to Political, Regulatory and Legal Risks*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We face the risk of political and economic crises, instability, terrorism, civil strife, labor conflicts, expropriation and other risks of doing business in emerging markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Latin American governments have exercised and continue to exercise significant influence over the economies of the countries where we operate. This involvement, as well as political and economic conditions, could adversely affect our business;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The economies of the countries in which we operate are vulnerable to external effects that could be caused by significant economic difficulties experienced by major regional trading partners or by more general contagion effects, which could have a material adverse effect on economic growth in these countries and their ability to service their public debt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Local currencies used in the conduct of our business are subject to depreciation, volatility and exchange controls;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Growth of e-commerce transactions in Latin America may be slowed down by the lack of robust consumer fraud laws regarding payment methods;

*Risks Related to Our Status as a Foreign Private Issuer*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• As a foreign private issuer, we are not subject to certain corporate governance rules applicable to U.S. listed companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We are a foreign private issuer and, as a result, are not subject to U.S. proxy rules but are subject to reporting obligations that, to some extent, are more lenient and less frequent than those of a U.S. issuer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Cayman Islands Economic Substance Law may affect our operations;

*Risks Related to Operating as a Public Company*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We will incur increased costs and expenses as a result of operating as a public company and our management will be required to devote substantial time to compliance with our public company responsibilities and corporate governance practices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We have identified material weaknesses in our internal control over financial reporting and if we fail to establish and maintain proper and effective internal control over financial reporting, our operating results and our ability to operate our business could be harmed, and investor confidence and the market price of our ordinary shares may be adversely affected;

*Risks Related to our Ordinary Shares*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• There has been no prior public market for our ordinary shares, and an active trading market may never develop or be sustained;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The trading price of our ordinary shares following this Offering may be volatile, and investors in our ordinary shares may not be able to resell shares of our ordinary shares at or above the price paid, or at all;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We do not expect to declare or pay any dividends on our ordinary shares for the foreseeable future.

#### Corporate Information
We are an exempted company incorporated in the Cayman Islands with limited liability with effect from September 13, 2022. Our principal executive offices are located at Carrera 11A #93-52, Oficina 501-502, Bogotá — Colombia, and our telephone number is +57 601 5404058. Our website address is *www.merqueo.com*. Information contained on, or that can be accessed through, our website is not incorporated by reference into this prospectus, and you should not consider information on our website to be part of this prospectus.

The Merqueo design logo and our other registered or common law trademarks, service marks, or trade names appearing in this prospectus are the property of Merqueo. Other trade names, trademarks and service marks used in this prospectus are the property of their respective owners.

We are an "emerging growth company," as defined in Section 2(a) of the Securities Act of 1933, as amended, or the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. As such, we are eligible to take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not "emerging growth companies" including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, or the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions

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from the requirements of holding a non-binding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. If some investors find our securities less attractive as a result, there may be a less active trading market for our securities and the prices of our securities may be more volatile.

We will remain an emerging growth company until the earlier of (1) the last day of the fiscal year (a) following the fifth anniversary of the completion of this Offering, (b) in which we have total annual gross revenue of at least U.S.$1.24 billion, or (c) in which we are deemed to be a large accelerated filer, which means the market value of our ordinary shares held by non-affiliates equals or exceeds U.S.$700 million as of the prior June 30, and (2) the date on which we have issued more than U.S.$1.0 billion in non-convertible debt during the prior three-year period. References herein to "emerging growth company" have the meaning associated with it in the JOBS Act.

#### Recent Developments
On October 6, 2022, we issued warrants with an expiration date of October 30, 2023 (the "New Warrants" and together with the BLAO Warrant (as defined below), the "Shareholders' Warrants"), which can be exercised upon the earliest to occur of November 30, 2022, or the consummation of an initial public offering, whichever is sooner (see Management's Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources below). These New Warrants were later amended and restated on December 19, 2022 to change the issuer from Merqueo S.A.S to the Company. The New Warrants have an expiration date of October 30, 2023, and can be exercised on any date between the date of its issuance and the day on which this Registration Statement is declared effective by the SEC. As of the date of this prospectus, an aggregate amount of 1,751,861,847 Shareholders Warrants is outstanding and up to 1,761,861,846 Series D-2 preferred shares may be issued as a result of the conversion of such Shareholders Warrants, to the extent all warrant holders exercise their conversion rights.

On December 20, 2022, pursuant to Amendment No. 1 and Undertaking Agreement (as defined below) we obtained a limited waiver from Inter American Investment Corporation ("IDB-I") related to the following defaults on covenants under the IDB-I Loan Agreement (as defined below): (i) our obligation to establish a succession plan for individuals to assume relevant internal positions for our operations, (ii) our obligation to deliver within 45 days after each financial quarter a certificate of an authorized representative including an explanation of the key operating variables and calculations in reasonable detail demonstrating compliance with the financial covenants under the IDB-I Loan Agreement, or detailing any non-compliance, and (iii) our obligation to provide, after each financial quarter, the management statements and presentations delivered to the board of directors showing our and our subsidiaries' financial performance. Pursuant to the Amendment No. 1 and Undertaking Agreement (as defined below), we are required to comply with such obligations no later than June 30, 2023. As of the date hereof, we have complied with our obligation to establish a succession plan. Given that the remaining obligations are within our control and are not based on financial metrics we need to maintain, we expect to be able to comply with the pending requirements by June 30, 2023, and have therefore presented such outstanding loan as non-current as of December 31, 2022.

On February 15, 2023, pursuant to Limited Waiver and Amendment No. 2 (as defined below) we obtained a limited waiver from IDB-I under the IDB-I Loan Agreement with respect to our obligations not to incur senior debt or certain financial debt. Pursuant to the Limited Waiver and Amendment No. 2, IDB-I waived such obligations insofar as such covenants would prohibit us from the incurrence of senior indebtedness under certain convertible debt instruments for up to U.S.$4,000,000, with a maturity date not to exceed eighteen (18) months. We expect these convertible debt instruments to be senior to the IDB-I Loan Agreement.

On March 3, 2023, we entered into a convertible debt note agreement for U.S.$1,500,000 with vehicles affiliated with Portland Private Equity Group (the "Portland Convertible Note Agreement 3" and together with the Portland Convertible Note Agreement 2, the "Outstanding Portland Convertible Note Agreements"). This note has a termination date at the earliest of (i) the day after the date of effectiveness of this Registration Statement, or (ii) the one year anniversary of the execution of the note. If the Registration Statement is declared effective, the Portland Convertible Note Agreement 3 shall be paid by Merqueo in ordinary shares in an amount calculated with an original issue discount of 20% and using a price per share equal to the applicable price per share of the initial public offering with a discount of 35%. If payable upon the one-year anniversary, it will be paid in cash, including its principal and accrued interests of 18% effective annual rate. It is Merqueo's intention to enter into an agreement with the Portland Convertible Note Agreement 3 holders for them to agree to receive ordinary shares at par value of U.S.$0.11232 as a result of the conversion.

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#### Our Offering

---

| | |
|:---|:---|
|  Ordinary shares offered by us | shares |
|  Ordinary shares to be outstanding after <br>this Offering | <br> shares (or shares if the underwriter exercises its over-allotment option in full). This number assumes the conversion of all outstanding Shareholders' Warrants into preferred Series D-2, and conversion of the PJSX Convertible Note Agreements, the Outstanding Portland Convertible Note Agreements, the Fuel Convertible Note Agreement, the Pablo Gonzalez Convertible Note Agreement and the MGM Convertible Note Agreement to ordinary shares and subsequently, the conversion, at the corresponding conversion price of all of our outstanding preferred shares into our ordinary shares immediately prior to the completion of this Offering. |
|  Option to purchase additional shares | We have granted an option to the underwriter, exercisable for 45 days after the closing of this Offering, to purchase up to additional shares at the public offering price, less the underwriting discount. |
|  Underwriter's Warrants | We will issue to the underwriter, or its permitted designees, warrants to purchase up to ordinary shares, representing 10% of the ordinary shares sold in this Offering (excluding any ordinary shares issuable pursuant to the over-allotment option) ("Underwriter's Warrants"). The Underwriter's Warrants will have an exercise price of 125% of the per share public offering price, will be exercisable during the ten-month period commencing on the date that is six months from the commencement of the sales of the offering. For additional information regarding our arrangement with the underwriter, please see "Underwriters." |
|  Lock-up agreements | Our directors, executive officers, employees and shareholders holding ten percent (10%) or more of the outstanding shares have agreed with the underwriter not to offer for sale, issue, sell, contract to sell, pledge or otherwise dispose of any of our ordinary shares or securities convertible into ordinary shares for a period of 180 days from the closing of this Offering. |
|  Use of proceeds | We estimate that our net proceeds from this Offering will be approximately U.S.$ million (or approximately U.S.$ million if the underwriters exercise their over-allotment option in full) from the sale of the shares of ordinary shares offered by us in this Offering, based on an assumed initial public offering price of U.S.$ per share, the midpoint of the price range set forth on the cover page of this prospectus, and after deducting underwriting discounts and commissions and estimated offering expenses payable by us. <br> We intend to use the anticipated net proceeds from this Offering for capital expenditures and other general corporate purposes, including the costs associated with being a public company. See "Use of Proceeds" for additional information. |
|  Dividend policy | We currently intend to retain all available funds and any future earnings to fund the development and growth of our business. Therefore, we do not anticipate declaring or paying any cash dividends to our shareholders in the foreseeable future. See "Dividend Policy" for additional information. |
|  Risk factors | You should read the section titled "Risk Factors" for a discussion of factors to consider carefully before deciding to invest in our shares. |
|  Proposed Nasdaq symbol | "MERQ" |

---

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The number of our ordinary shares to be outstanding after this Offering is based on ordinary shares outstanding as of , 2023. Unless otherwise indicated, all information contained in this prospectus assumes no exercise of the option granted to the underwriter to purchase up to additional ordinary shares at the public offering price, less the underwriting discount.

The number of ordinary shares to be outstanding after this Offering does not take into account the aggregate ordinary shares reserved for future issuance under the Plan (as defined under "Executive Compensation").

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#### Summary Consolidated Financial Data
*The following table summarizes our consolidated financial data at the dates and for the periods indicated. We have derived our summary consolidated statements of operations data for the years ended December 31, 2021 and 2022 and our summary consolidated balance sheet data as of December 31, 2021 and 2022 from our audited consolidated financial statements included elsewhere in this prospectus. Our consolidated financial statements have been prepared in accordance with IFRS and are presented in thousands of Colombian Pesos ($), except for earnings per share and as otherwise specified included elsewhere in this prospectus. We prepare our financial statements in accordance with IFRS, as issued by the IASB. The financial information presented below may not be indicative of our future performance. The summary consolidated financial data should be read in conjunction with "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the consolidated financial statements and the accompanying notes included elsewhere in this prospectus.*

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2021** | **2022** | **2022** |
|  | **(in COP$ Thousands)** | **(in COP$ Thousands)** | **(U.S.$)<sup>(</sup><sup>1</sup><sup>)</sup>** |
|  **Continuing Operations** |  |  |  |
|  Net revenues | 205600950 | 133906761 | 27838086 |
|  Cost of sales | (193890132) | (126746164) | (26349458) |
|  **Gross profit** | **11710818** | **7160597** | **1488628** |
|  Selling expenses | (79775558) | (75224959) | (15638634) |
|  Administrative expenses | (41755390) | (70031608) | (14558980) |
|  Technology expenses | (4594339) | (6579776) | (1367880) |
|  Other operating income | 1303585 | 2167920 | 450692 |
|  Other operating expenses | (5362586) | (13143965) | (2732519) |
|  **Operating loss** | **(118473470**) | **(155651791)** | **(32358694)** |
|  Finance income | 47449 | 98556  | 20489 |
|  Finance expenses | (5638021) | (98528463) | (20483236) |
|  Net loss on exchange differences | (1613669) | (16222617) | (3372545) |
|  Net financial result | (7204241) | (114652524) | (23835293) |
|  **Loss before income tax** | **(125677711**) | **(270304315)** | **(56193987)** |
|  Income tax benefit |  | (1449) | (301) |
|  Net loss for the year from continuing operations | **(125677711**) | **(270305764)** | **(56194288)** |
|  Net loss from discontinued operations | (38265459) | (24115983) | (5013509) |
|  **Net loss for the year** | **(163943170**) | **(294421747)** | **(61207797)** |
|  Loss per share from continuing operations | (205.46) | (266.48) | (0.06) |
|  Loss per share in discontinued operations | (62.56) | (23.78) | (0.00) |
|  **Basic and diluted loss per share** | **(268.02**) | **(290.26)** | **(0.06)** |

---

____________

(1) For convenience purposes only, amounts in U.S.$ have been translated to U.S. dollars using an exchange rate of COP$4,810.20 to U.S.$1.00, which corresponds to the *tasa representativa del mercado* ("representative market rate") as of December 31, 2022, as reported by Colombia's *Banco de la República*. These translations should not be considered representations that any such amounts have been, could have been or could be converted at that or any other exchange rate. See "Risk Factors — Inflation and certain government measures to curb inflation may have adverse effects on the economies of the countries where we operate, our business and our operations."

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---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2021** | **2022** | **2022** |
|  | **(in COP$ Thousands)** | **(in COP$ Thousands)** | **(U.S.$)<sup>(1)</sup>** |
|  **Current assets** |  |  |  |
|  Cash and cash equivalents | 8670873 | 4418060 | 918477  |
|  Trade and other receivables | 6491137 | 6575022 | 1366892 |
|  Prepaid expenses | 605413 | 884175 | 183813  |
|  Inventories | 12374610 | 5748051 | 1194971  |
|  Recoverable taxes | 6382157 | 8067474 | 1677160  |
|  Other financial assets | 335788 | 619331 | 128754  |
|  **Total current assets** | **34859978** | **26312113** | **5470066** |
|  **Non-current assets** |  |  |  |
|  Property and equipment, net | 5691509 | 5051321 | 1050127  |
|  Right-of-use assets, net | 18353153 | 10408281 | 2163794 |
|  Intangible assets, net | 13340644 | 7862089 | 1634462  |
|  Trade and other accounts receivable | 1546878 | 1390845 | 289145  |
|  **Total non-current assets** | **38932184** | **24712536** | **5137528** |
|  **Total assets** | **73792162** | **51024649** | **10607594** |
|  **Current liabilities** |  |  |  |
|  Interest-bearing loans and borrowings | 6667981 | 9169123 | 1906183  |
|  Employee benefits | 5684467 | 5184487 | 1077811  |
|  Suppliers and other payables | 51542661 | 29285855 | 6088282  |
|  Accounts payable to related parties | 982875 | 28258254 | 5874653  |
|  Lease liabilities | 5766400 | 4230219 | 879427 |
|  Other taxes payable | 120588 | 487285 | 101302  |
|  Other non-financial liabilities | 2637379 | 1282360 | 266592  |
|  **Total current liabilities** | **73402351** | **77897583** | **16194250** |
|  **Non-current liabilities** |  |  |  |
|  Interest-bearing loans and borrowings | 1278587 | 100349560 | 20861827  |
|  Accounts payable to related parties | 4627124 | 3911533 | 813175  |
|  Lease liabilities | 14278538 | 5637428 | 1171974 |
|  **Other non-financial liabilities** | 0 | 193770 | 40283 |
|  **Total non-current liabilities** | **20184249** | **110092291** | **22887259**  |
|  **Total liabilities** | **93586600** | **187989874** | **39081509**  |
|  **Equity** |  |  |  |
|  Issued capital | 225005245 | 392164623 | 81527717  |
|  Cumulative deficit | (322534195) | (616955942) | (128259936) |
|  Other comprehensive income (loss) | (455900) | 1059120 | 220182  |
|  Other capital reserves | 78190412 | 86766974 | 18038122  |
|  **Total equity** | **(19794438)** | **(136965225)** | **(28473915)** |
|  **Total equity and liabilities** | **73792162** | **51024649** | **10607594**  |

---

____________

(1) For convenience purposes only, amounts in U.S.$ have been translated to U.S. dollars using an exchange rate of COP$4,810.20 to U.S.$1.00, which corresponds to the *tasa representativa del mercado* ("representative market rate") as of December 31, 2022, as reported by Colombia's *Banco de la República*. These translations should not be considered representations that any such amounts have been, could have been or could be converted at that or any other exchange rate. See "Risk Factors — Inflation and certain government measures to curb inflation may have adverse effects on the economies of the countries where we operate, our business and our operations."

We use non-IFRS financial information and believe it is useful to investors as it provides additional information to facilitate comparisons of historical operating results, and identify trends in our underlying operating results, and it provides additional insight and transparency on how we evaluate the business. These non-IFRS measures are used by both our management and our board of directors, together with the comparable IFRS information, in evaluating our current performance and planning future business activities. We have detailed the non-IFRS adjustments that we make in our non-IFRS definitions below. We believe these non-IFRS measures should always be considered along with

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the related IFRS financial measures. Non-IFRS financial information is presented for supplemental informational purposes only and should not be considered in isolation or as a substitute for financial information presented in accordance with IFRS. Our presentation of non-IFRS measures should not be construed as an inference that our future results will be unaffected by unusual or nonrecurring items. Other companies in our industry may calculate these measures differently, which may limit their usefulness as a comparative measure.

We have provided the reconciliations between the IFRS and non-IFRS financial measures below. For more information, see "Management's Discussion and Analysis of Financial Condition and Results of Operations."

EBITDA, Adjusted Gross Profit and Total Distribution and Logistics Cost are not measurements of performance under IFRS or any other generally accepted accounting principles, and you should not consider them as alternatives to operating profit/loss or other financial measures determined in accordance with IFRS or other generally accepted accounting principles. These measures have limitations as analytical tools, and you should not consider them in isolation. We have chosen to present these non-IFRS measures as they are common for other companies in our industry.

The following table presents a reconciliation of net loss for the year to EBITDA:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the year ended December 31,** | **For the year ended December 31,** | **For the year ended December 31,** |
|  | **2021** | **2022** | **2022** |
|  | **(in COP$ Thousands)** | **(in COP$ Thousands)** | **(in U.S.$)<sup>(1)</sup>** |
|  Net loss for the year | **(163943170)** | **(294421747)** | **(61207797)** |
|  Net loss from discontinued operations | (38265459) | (24115983) | (5013509) |
|  **Net loss for the year from continuing operations** | **(125677711)** | **(270305764)** | **(56194288)** |
|  Income tax benefit (expense) |  | (1449) | (301) |
|  Net financial result | (7204241) | (114652524) | (23835293) |
|  Net loss on exchange differences | (1613669) | (16222617) | (3372545) |
|  Finance expenses | (5638021) | (98528463) | (20483236) |
|  Finance income | 47449 | 98556  | 20489  |
|  **Operating loss** | **(118473470)** | **(155651791)** | **(32358694)** |
|  Depreciation and amortization | 8760609 | 8752589  | 1819589  |
|  **EBITDA** | **(109712861)** | **(146899202)** | **(30539105)** |

---

____________

(1) For convenience purposes only, amounts in U.S.$ have been translated to U.S. dollars using an exchange rate of COP$4,810.20 to U.S.$1.00, which corresponds to the *tasa representativa del mercado* ("representative market rate") as of December 31, 2022, as reported by Colombia's *Banco de la República*. These translations should not be considered representations that any such amounts have been, could have been or could be converted at that or any other exchange rate. See "Risk Factors — Inflation and certain government measures to curb inflation may have adverse effects on the economies of the countries where we operate, our business and our operations."

The following table presents a reconciliation for the period to Adjusted Gross Profit:

---

| | | | |
|:---|:---|:---|:---|
|  **Consolidated Basis** | **For the year ended December 31,** | **For the year ended December 31,** | **For the year ended December 31,** |
|  **Consolidated Basis** | **2021** | **2022** | **2022** |
|  | **(in COP$ Thousands)** | **(in COP$ Thousands)** | **(in U.S.$)<sup>(1)</sup>** |
|  Net revenues | $205600950 | $133906761 | $27838086 |
|  Gross Profit | $11710818 | $7160597 | $1488628 |
|  Depreciation of right-of-use assets | $4569108 | $4532360 | $942239 |
|  Adjusted Gross Profit | $16279926 | $11692957 | $2430867 |
|  Gross Profit as a percentage of net revenue<sup>(</sup><sup>2</sup><sup>)</sup> | 6% | 5% | 5% |
|  Adjusted Gross Profit as a percentage of net revenue<sup>(</sup><sup>3</sup><sup>)</sup> | 8% | 9% | 9% |

---

____________

(1) For convenience purposes only, amounts in U.S.$ have been translated to U.S. dollars using an exchange rate of COP$4,810.20 to U.S.$1.00, which corresponds to the *tasa representativa del mercado* ("representative market rate") as of December 31, 2022, as reported by Colombia's *Banco de la República*. These translations should not be considered representations that any such amounts have been, could have been or could be converted at that or any other exchange rate. See "Risk Factors — Inflation and certain government measures to curb inflation may have adverse effects on the economies of the countries where we operate, our business and our operations."

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(2) In Colombia, the Gross Profit as a percentage of net revenue was (i) in 2021, 8%, and (ii) in 2022, 8%. In Brazil, the Gross Profit as a percentage of net revenue was (i) in 2021, (315)%, and (ii) in 2022, (10)%.

(3) In Colombia, the Adjusted Gross Profit as a percentage of net revenue was (i) in 2021, 10%, and (ii) in 2022, 12%. In Brazil, the Adjusted Gross Profit as a percentage of net revenue was (i) in 2021, (288)%, and (ii) in 2022, (5)%.

The following table presents a reconciliation of cost of sales and selling expenses for the period to Total Distribution and Logistics Cost:

---

| | | | |
|:---|:---|:---|:---|
|  **Consolidated Basis** | **For the year ended December 31,**  | **For the year ended December 31,**  | **For the year ended December 31,**  |
|  **Consolidated Basis** | **2021** | **2022** | **2022** |
|  | **(in COP$ Thousands)** | **(in COP$ Thousands)** | **(in U.S.$)<sup>(1)</sup>** |
|  Cost of Sales | $193890132 | $126746164 | $26349458 |
|  (-) Cost of goods sold for sales of inventories | $(188102570) | $(120806776) | $(25114709) |
|  (-) Payroll | $(1218454) | $(1407028) | $(292509) |
|  (+) Selling Expenses | $79775558 | $75224959 | $15638634 |
|  (-) Advertising | $(16123723) | $(14821804) | $(3081328) |
|  (-) Commissions | $(2989397) | $(2300737) | $(478304) |
|  Total Distribution and Logistics Cost | $**65231546** | $**62634778** | $**13021242** |
|  Net Revenues | $205600950 | $133906761 | $27838086 |
|  Distribution and Logistics Cost as a percentage of net <br>revenue | 32% | 47% | 47% |
|  Warehouse employees | $16918660 | $18976670 | $3945090 |
|  Administrative employees supporting selling activities | $11454789 | $13428729 | $2791719 |
|  Total expense for employee benefits | $**28373449** | $**32405399** | $**6736809** |
|  Total Distribution and Logistics Cost excluding administrative employees supporting selling activities | $**53776757** | $**49206050** | $**10229523** |
|  Net Revenues | $205600950 | $133906761 | $27, 838086 |
|  Distribution and Logistics Cost excluding administrative employees supporting selling activities as a percentage of net revenue<sup>(2)</sup> | 26% | 37% | 37% |

---

__________

(1) For convenience purposes only, amounts in U.S.$ have been translated to U.S. dollars using an exchange rate of COP$4,810.20 to U.S.$1.00, which corresponds to the *tasa representativa del mercado* ("representative market rate") as of December 31, 2022, as reported by Colombia's *Banco de la República*. These translations should not be considered representations that any such amounts have been, could have been or could be converted at that or any other exchange rate. See "Risk Factors — Inflation and certain government measures to curb inflation may have adverse effects on the economies of the countries where we operate, our business and our operations."

(2) In Colombia, the Distribution and Logistics Cost excluding administrative employees supporting selling activities as a percentage of net revenue was (i) in 2021, 26%, and (ii) in 2022, 31%. In Brazil, the Distribution and Logistics Cost excluding administrative employees supporting selling activities as a percentage of net revenue was (i) in 2021, 73%, and (ii) in 2022, 64%.

For additional information, see "Management's Discussion and Analysis Of Financial Condition and results of Operations — Non-IFRS Financial Measures and Key Business Metrics."

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#### Risk Factors
*A description of the risks and uncertainties associated with our business and ownership of our shares is set forth below. You should carefully consider the risks and uncertainties described below, together with all of the other information in this prospectus, including the section titled "Management's Discussion and Analysis of Financial Condition and Result of Operations" and our consolidated financial statements and the related notes included elsewhere in this prospectus, before making a decision to invest in our shares. Our results of operations, financial condition, business and prospects could also be harmed by risks and uncertainties that are not presently known to us or that we currently believe are not material. If any of the risks actually occur, our results of operations, financial condition, business and prospects could be materially and adversely affected. In that event, the market price of our shares could decline and you could lose all or part of your investment.*

#### Risks Related To Our Business And Industry

#### Our business depends on the continued growth of online commerce and the availability and reliability of the Internet in Latin America.
E-commerce is still a developing market in some parts of Latin America. Our future revenues depend substantially on Latin American consumers' and providers' widespread acceptance, continued and steadily increasing use of the internet as a way to conduct commerce and to carry out transactions. For us to grow our customer base successfully, more consumers and providers must accept and use new ways of conducting business and exchanging information. The price of personal computers and/or mobile devices with adequate storage capacity and Internet access may limit our potential growth in certain areas or countries with low levels of Internet penetration and/or high levels of poverty. The infrastructure for the Internet in some parts of Latin America may not be able to support continued growth in the number of Internet customers, their frequency of use or their bandwidth requirements. Our future results of operations will depend on numerous factors affecting the development of the e-commerce retail industry in our region, which may be beyond our control. These factors include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the continuous availability of internet access without interruptions in connectivity and service;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the trust and confidence level of e-commerce consumers in our region, as well as changes in customer demographics and consumer tastes and preferences;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• whether alternative retail channels or business models that better address the needs of consumers emerge in our region;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the development of logistics, payment and other ancillary services associated with e-commerce; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the growth rate of internet, broadband, personal computer, and smartphone penetration and usage in our region, and in particular in smaller cities which may have more limited connectivity and resources.

A decline in the usage of online shopping in general, or any failure by us to adapt our platform and improve the online shopping experience of our customers in response to trends and consumer preferences, may adversely affect our revenue and business prospects.

In addition, we will continue to face challenges in the growth of our e-commerce business and profitability related to the expansive and diverse geographic regions we operate in and the need for substantial improvements in logistics, including last-mile delivery and warehousing infrastructure necessary to fulfill customers' orders. Moreover, the growth of our business depends on assumptions about the e-commerce penetration rate and overall growth of the e-commerce market. To the extent these growth assumptions and forecasts turn out to be incorrect, our business may be materially and adversely affected.

Given that we operate in a business environment in Latin America that is different than the environment in which other e-commerce companies in the United States or other regions operate, the performance of such other e-commerce companies is not indicative of our future financial performance. Accessibility, transaction speeds, acceptance, interest, and use of the Internet across Latin America are all critical to our growth and services and the occurrence of any one or more of the above challenges to Internet usage could have a material adverse effect on our business.

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#### The outbreak of COVID-19 may have in the future a negative impact on the global economy and on our business, operations and results.
The global spread of COVID-19, a novel strain of coronavirus, has resulted in government authorities and businesses throughout the world implementing numerous measures to contain or mitigate it, including travel bans and restrictions, quarantines, shelter in place and lock-down orders and business limitations and shutdowns. These measures have had dramatic adverse consequences for the global economy, affecting demand, operations, supply chains and financial markets, and have significantly contributed to deteriorating macroeconomic conditions. The full extent of the nature and scope of the consequences to date are difficult to evaluate precisely, and their future course is impossible to predict with confidence.

The COVID-19 pandemic positively impacted our business due to an increase in orders because of the lockdowns in Colombia. However, these results may not be indicative of results for future periods and we cannot assure you that we will always benefit from such measures and that such trends will continue going forward as key markets in which we operate begin to recover from the COVID-19 pandemic. Our future results may differ from our historical results given the impact of COVID-19 on our business during the past two years. On the other hand, potential lockdowns imposed by Latin American governments that have restricted merchants and delivery persons from operating may result at times in our inability to make deliveries, which in turn may lead to fewer transactions and weak macro-economic conditions where we operate, including significant changes in the prices of certain of the goods and commodities that we require to run our business.

The future impact of the COVID-19 crisis on our business, operations, or financial results is uncertain and will depend on numerous evolving factors that we cannot predict, including, but not limited to the duration, scope, and severity of the COVID-19 pandemic, the speed of availability and distribution of vaccines or other treatments in the regions where we operate, disruption of our warehouse network and the availability of delivery personnel, disruption or delay of the activity of our third-party merchants, an unexpected shift in consumer behavior, the impact of travel bans, work-from-home policies, or shelter-in-place orders, the temporary or prolonged shutdown of manufacturing facilities and other facilities producing goods on which our business depends, staffing shortages, general economic, financial, and industry conditions, particularly conditions relating to liquidity, financial performance, and related credit issues in the retail sector, which may be amplified by future effects of new COVID-19 variants, effectiveness of government stimulus programs, the long-term effects of COVID-19 on the global economy, including on consumer confidence and spending, financial markets and the availability of credit for us, our suppliers and our customers, and increased cyber and payment fraud risk related to COVID-19, as cybercriminals attempt to profit from the disruption in light of increased online-banking, e-commerce and other online activity.

A sustained or prolonged COVID-19 outbreak or a resurgence or the emergence of a new variant of coronavirus for which current vaccines may be less effective could exacerbate the factors described above and intensify the impact on our business. In addition, if the future potential adverse effects of the COVID-19 outbreak are sustained, they could have accounting consequences, such as impairments of fixed assets or goodwill. A protracted or COVID-19 outbreak or the emergence of a new variant could also affect our ability to execute our expansion plans or invest in products and development. The resumption of economic activity and business operations to pre-pandemic levels may be delayed or constrained by lingering effects on our customers, partners, and personnel. Accordingly, these factors may adversely affect our business, financial condition, and results of operations, even after the COVID-19 outbreak has subsided.

As the severity, magnitude and duration of the COVID-19 pandemic, corresponding public health responses and the economic consequences of the foregoing remain uncertain, rapidly changing and difficult to predict, we may experience ongoing disruptions that could severely impact our business, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• other effects from governmental, business and individuals' actions that have been and continue to be taken in response to the pandemic (including restrictions on travel and transportation and workforce pressures);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reductions in operating effectiveness due to employees working remotely; unavailability of personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• limited access to liquidity; increased volatility and pricing in the capital and commercial paper markets; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• further disruption of our global supply chain and logistics networks.

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The COVID-19 outbreak has required and is likely to continue to require management to devote time and attention, as well as increased investments of resources across our enterprise, including as a result of our continued efforts to monitor the progress of the COVID-19 pandemic and any additional measures we may have to take to comply with the rapidly changing regulations of the countries in which we operate. The spread of COVID-19 has caused us to implement modifications to our business practices, including work-from-home policies and strict health and safety precautions for our offices and warehouse network. These modifications to our business practices, which may continue for an extended period of time, and subsequent reintroduction into the workplace could pose operational risk, increase cybersecurity risk, strain our business continuity plans, negatively impact productivity, give rise to claims by employees, and impair our ability to manage our business or otherwise adversely affect our business. Additionally, COVID-19 could negatively affect our ability to operate effective internal controls over financial reporting given that a significant number of our employees are required to work from home and therefore new or modified processes, procedures, and controls could be required to respond to changes in our business environment and practices. We may take further actions as may be required by government authorities or that we determine are in the best interests of our employees, customers, and business partners. There is no certainty that those measures will be sufficient to mitigate the risks posed by COVID-19 or will otherwise be satisfactory to government authorities.

#### The occurrence of a natural disaster, widespread health epidemic or other outbreaks could adversely affect our business.
Our business or operations could be adversely affected by severe weather conditions, natural disasters or the outbreak of a new strain of coronavirus, avian influenza, severe acute respiratory syndrome, the influenza A (H1N1), H7N9 or another epidemic. Any of such occurrences could cause severe disruption to our daily operations, and may even require a temporary closure of our operations across one or more markets. Such closures may disrupt our business operations and adversely affect our business, financial condition and results of operations. Our operations could also be disrupted if our third-party service providers, suppliers, delivery personnel or a significant portion of our customers were affected by such natural disasters or health epidemics.

#### We operate in a highly competitive and evolving environment.
The e-commerce retail and e-commerce services industries are relatively new in Latin America, rapidly evolving and intensely competitive, and we expect competition to become more intense in the future. With regard to the online grocery stores, the barriers to entry are relatively low and current offline and new competitors who want to create and promote their own stores or platforms, can easily launch new sites at relatively low cost using software that is commercially available. We currently compete with a number of companies, including traditional brick and mortar retailers, that have launched online offerings, other online services, including those that serve specialty markets, business-to-consumer online commerce services located throughout the markets in which we operate.

Our competitors may respond to new or emerging technologies and changes in customer requirements faster and more effectively. They may devote greater resources to the development, promotion, and sale of products and services than we are able to.

Larger, more well-established and/or well-financed companies may also acquire, invest in or enter into commercial relationships with competing businesses. As a result, some of our competitors and potential competitors may be able to devote greater resources, at a lower funding cost, to marketing and promotional campaigns, adopt more aggressive pricing policies and devote substantially more resources to website, applications and systems development than us, which could adversely affect us.

#### The markets in which we operate are rapidly evolving and we may not be able to achieve our profitability goals.
As a result of the emerging nature and related volatility of the markets and economies in the countries in which we operate and the rapidly evolving nature of our business, it is particularly difficult for us to forecast our revenues or earnings. Substantially all of our net revenues for each quarter are derived from sale of goods that are earned during that quarter. Our current and future expense levels are based largely on our investment plans and estimates of future revenues and demand and are, to a large extent, fixed. We may not be able to adjust spending in a timely manner to compensate for any unexpected revenue shortfall. Accordingly, any significant shortfall in revenues relative to our planned expenditures would have an immediate adverse effect on our business, results of operations and financial condition.

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#### Our operations are subject to extensive food quality and safety regulations.
Our operations and products are subject to extensive municipal, state or federal laws, rules, regulations and standards of hygiene and quality regulation in the food safety area and oversight by authorities in each of the countries where we operate regarding the processing, packaging, labeling, storage, distribution and advertising of our products. Authorities enact and enforce regulations with respect to our operations by, among other things, enforcing federal and state standards for selected food products, grading food products, and inspecting warehouses. Consequently, we are required to maintain various registries, licenses and permits in order to operate our business.

Our operations in Colombia are subject to extensive laws, rules, regulations and standards of hygiene, quality regulation, processing, packaging, labeling, storage, distribution and advertising of our products and oversight by designated authorities such as the INVIMA (*Instituto Nacional de Vigilancia de Medicamentos y Alimentos*), the Superintendency of Commerce (*Superintendencia de Industria y Comercio*) and the local sanitary agencies (*Secretaria Distrital de Salud*).

Our Brazilian products and packaging materials are regulated by ANVISA (*Agencia Nacional de Vigilancia Sanitaria*). This agency enacts and enforces regulations relating to the production, distribution and labeling of food products in Brazil. In addition, various states regulate our Brazilian operations by licensing plants, enforcing federal and state standards for selected food products, grading food products, inspecting warehouses, regulating trade practices related to the sale of products.

Government policies and regulations in Colombia and Brazil may adversely affect the supply of, demand for, and prices of, our products, restrict our ability to do business in existing and target local markets and could adversely affect our business, financial condition, results of operations and prospects.

The laws and regulations to which we are subject, and interpretations thereof, may change, sometimes dramatically, as a result of a variety of factors beyond our control, including political, economic, regulatory or social events.

Changes in legal or regulatory requirements, or evolving interpretations of existing legal or regulatory requirements, may result in a material increase in our compliance costs, capital expenditures and other financial obligations, as well as interruptions in our operations and changes in consumer preferences, that in each case could adversely affect our business, financial condition, results of operations and prospects.

If we are found to be out of compliance with applicable laws and regulations, we could be subject to civil remedies, including fines, injunctions, termination of necessary licenses or permits, or recalls, as well as potential criminal sanctions, any of which could have a material adverse effect on our business. Even if regulatory review of our operations does not result in such an outcome, it could potentially create negative publicity or perceptions of us which could harm our business or reputation and could adversely affect our results of operations. In particular, as of the date of this prospectus, ANVISA has not yet issued a sanitary permit for our warehouse in Brazil. We have filed all required documentation for purposes of obtaining such permit. However, the authority must make an in-person visit before issuing such permit and considering a lack of personnel within the agency, in-person visits may be delayed.

#### Risks Related to Operations

#### We may fail to maintain or grow the size of our customer base or the level of engagement of our customer base.
The size and engagement level of our customer base are critical to our success. Our business and financial performance have been and will continue to be significantly determined by our success in adding, retaining, and engaging active customers. We continue to invest significant resources to grow our customer base and increase customer engagement, whether through innovations, providing new or improved content or services, marketing efforts or other means. While our customer base has expanded significantly in the past, we cannot assure you that our customer base and engagement levels will continue growing at satisfactory rates, or at all. Our customer growth and engagement could be harmed if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we fail to raise awareness and maintain the usage of our services among customers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we are unable to maintain the quality and quantity (variety) of our existing products and services;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we are unsuccessful in innovating or introducing new, best-in-class products and services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we fail to adapt to changes in customer preferences, market trends or advancements in technology;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• technical or other problems prevent us from delivering our products, content or services in a timely and reliable manner or otherwise affect the customer experience, including with third parties that are our partners;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• there are customer concerns related to privacy, safety, transaction security or other factors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• aggressive monetization measures by us cause customers to shift to other platforms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• there are adverse changes to our platforms that are mandated by, or that we elect to make to address, legislation, regulation, or litigation, including settlements or consent decrees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we fail to maintain the brand image of our platform or our reputation is damaged;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our competitors implement or maintain aggressive pricing strategies; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• there are unexpected changes to the demographic trends or economic development of or affecting our region or other markets we are in.

Our efforts to avoid or address any of these events could require us to incur substantial expenditure to modify or adapt our products, services or platforms. If we fail to retain or continue growing our customer base, or if our customers reduce their engagement with our platforms, our business, financial condition, and results of operations could be materially and adversely affected.

#### Risks associated with the suppliers from whom products are sourced could adversely affect financial performance.
Significant disruptions in the operations of vendors and suppliers could materially impact our businesses by disrupting product selection or increasing costs, resulting in reduced sales or reduced margins. The products we sell in each of our markets are sourced from a wide variety of domestic and international suppliers. If disruptions should occur, the ability to find qualified suppliers who meet our standards and access products in a timely and efficient manner could be significantly challenged. Political and economic instability in the countries in which suppliers are located, suppliers' financial instability or failure to meet required standards, labor problems experienced by suppliers, the availability of raw materials to suppliers, competition for products from other retailers, the impact of adverse weather conditions, product quality issues, currency exchange rates, transport availability and cost, inflation, deflation, the impact of COVID-19 and other related or associated epidemics, disruptions in global logistics or supply chains, natural disasters and other factors relating to the suppliers and the countries in which they are located are beyond our control. In addition, tariffs and other impositions on imported goods, trade sanctions imposed on certain countries, the limitation on the importation of certain types of goods or of goods containing certain materials from other countries and other factors relating to foreign trade are beyond our control. Although as of the date of this prospectus we have not yet experienced impacts from the disruptions described above, these factors and other factors affecting the suppliers and access to products could result in decreased product selection and increased out-of-stock conditions, as well as higher product costs, which could adversely affect our operations and financial performance.

Our business, financial condition and results of operations may be materially adversely affected by any negative impact on the global economy and capital markets resulting from the conflict in Ukraine or any other geopolitical tensions. Global markets have experienced volatility and disruption following the escalation of geopolitical tensions and the start of the military conflict between Russia and Ukraine. Although the length and impact of the ongoing military conflict is highly unpredictable, the conflict in Ukraine has caused market disruptions and could lead to greater effects, including significant volatility in commodity prices (in particular oil and gas), credit and capital markets, increase in our energy and other input costs, and supply chain interruptions for some of our equipment, including as a result of uncertainties with regard to Russia's production and export of oil and gas, aluminum and other materials. We are continuing to monitor the situation in Ukraine and globally and assessing its potential impact on our business.

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***We rely on third parties for the delivery. If the services provided by these third-parties become unavailable or unavailable on favorable terms, our business could be adversely affected.***

We rely on outsourced delivery fleets and we are exposed to a lack of drivers at any moment as all drivers may render their services to competitors or other third parties. We cannot assure you that these fleets will continue to be available to us on commercially reasonable terms. Moreover, if the contracts are breached or terminated, this could impact the customer experience by affecting the timing and quality of the deliveries executed by these parties. Moreover, these owners and drivers perform cash collection for a portion of the deliveries and, although the company has procedures in place to keep control of the cash collections, there is a risk of parties breaching said procedures. Our potential sales may be limited by our capacity to engage sufficient owners and drivers to perform deliveries at any moment, which could materially adversely affect the deliveries offered to customers in terms of timing, frequency and quality. The Company currently mitigates this risk by generating an ecosystem that includes drivers as a key stone of the operations, generating trust, reliance in the Company and assuring the most competitive prices available in the industry. Although we generally have been able to renew or extend the terms of contractual arrangements with these service providers on acceptable terms, we cannot assure you that we will continue to be able to do so in the future.

Future changes in regulation may not permit the Company to keep executing third party driver contracts, which could materially adversely affect our business model. In addition, a regulatory change in either Brazil or Colombia mandating that some of our contractors or their employees are to be classified as employees, workers or quasi-employees could materially adversely affect our operations, internal processes, and the cost structure of the Company.

#### A change in supplier terms could adversely affect our financial performance.
We receive credits and income from suppliers primarily for volume incentives, new product introductions, in-app promotions, and co-operative advertising. Certain of these funds are based on the volume of net sales or purchases, growth rate of net sales or purchases and marketing programs. If we do not grow our net sales over prior periods or if we are not in compliance with the terms of these programs, there could be a material adverse effect on the amount of incentives offered or paid to us by our suppliers. Additionally, suppliers routinely change the requirements for, and the amount of, funds available. No assurance can be given that we will continue to receive such incentives or will be able to collect outstanding amounts relating to these incentives in a timely manner, or at all. A reduction in, the discontinuance of, or a significant delay in receiving these incentives, as well as the inability to collect incentives, could have a material adverse effect on our businesses, results of operations and financial condition.

#### Inventory risk may adversely affect our operating results.
We are exposed to inventory risks that may adversely affect our operating results because of supplier defaults, seasonality, new product launches, quick changes in product cycles and pricing, defective, expired, spoiled or lost products, changes in customer demand and customer spending patterns, changes in consumer tastes with respect to our products, spoilage, and other factors. We strive to predict these trends, as overstocking or understocking products we sell could lead to lower sales, missed opportunities, and excessive markdowns, each of which could have a material impact on our business and operating results. Moreover, as we expand into new markets, it may be difficult to determine appropriate product selection, and accurately forecast demand which could have a material adverse effect on our business.

In addition, we are exposed to a lack of inventory due to the need of securing the necessary funds to cover the needs of the operation and the payment of key suppliers which is directly impacted by current market conditions, venture capital and allocation of resources.

#### Failure to efficiently operate our warehouse network may negatively affect our business.
Profitability of our grocery delivery business depends on our ability to have adequate and efficiently operated warehouse infrastructure and delivery capabilities that match our ability to attract new customers and increase sales. If we do not expand our capabilities at the same speed as our sales growth, it will limit current sales and will have an impact on future sales by jeopardizing customer experience and potentially our brand image and reputation. Conversely, if our warehouse infrastructure consistently exceeds the capacity required for the actual level sales, the additional cost of the excess capacity will result in lower profitability.

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#### We may fail to operate our business profitably.
Our financial performance largely depends on our ability to operate our business profitably, and our failure to do so could materially and adversely affect our business, financial condition, and results of operations.

Our focus for our e-commerce business has been on building a seamless shopping experience for our customers and improving the online (via apps or website) shopping experience. Our main source of revenue is sales of the products that we offer directly to our customers. If our efforts to operate our business profitably are not successful, revenue generated may not offset our operating costs, causing our business to operate with losses for the foreseeable future. If our percentage of low ticket transactions increases, our profit margin may erode, or we may need to raise prices, which, in turn, may affect the volume of transactions. Moreover, efforts to generate revenue through secondary sources (including, but not limited to, advertising revenue) could worsen the user experience and increase the costs of using our platform to customers, which could negatively affect the number of customers and the level of customer engagement on our platform.

We currently generate revenue primarily through margins on products sold, but also through delivery fees. Our ability to continue to successfully monetize our business in the future will depend significantly on expanding our customer base and geographic footprint, neither of which may be achieved at the level we anticipate. We cannot assure you that our monetization efforts or our expansion into new regions, products and services will succeed and generate revenue at levels we expect, or at all.

For all of our businesses, we invest in customer data mining and analysis to better understand customer consumption patterns. This allows us to introduce content and services that are appealing to customers on our platform and to properly deploy and price products and services to enhance our monetization. However, data mining and analysis involves a substantial amount of judgment and discretion. If we fail to properly interpret the data collected from our operations or convert our data mining results into effective business strategies, our monetization may not be successful.

Low levels of liquidity may affect our ability to offer adequate service to our customers and therefore may have an impact on profitability. In addition, low levels of liquidity may affect our inventory due to the need of securing the necessary funds to cover the needs of the operation and the payment of key suppliers.

Low cash may limit our capacity to pay enough to suppliers in a manner that we may not be able to purchase the required levels of inventory, be it because we have a lesser quantity of certain products or because we cannot purchase certain products. This affects the number of products available for sale and the inventory levels that are available. This translates into a higher chance of having out-of-stock products, which may impact offering, variety and user perception.

Additionally, by having less products available there is a chance that some users will not complete the purchase and will seek an alternative to source the groceries (online or offline), and other users may complete a purchase but they will buy a smaller basket than otherwise should have full availability. Both have an impact in profitability in the sense that smaller baskets result in a higher cost as a percentage of revenue, and less sales imply an inefficient use of our installed infrastructure.

Also, we may be harmed if we are unable to renew the leases on existing warehouses and warehouse on commercially acceptable terms.

#### We may not be able to attain profitability without additional funding, which may be unavailable.
We have yet to obtain profitability as it relates to our operations. For the year ended December 31, 2022, the Company recognized a net loss of COP $294,421,747 thousand. For the year ended December 31, 2022, the financial statements reflect an excess of current liabilities over current assets of COP $51,585,470 thousand. Considering only cash and cash equivalents on hand, as of December 31, 2022 we had available resources of COP $4,418,060 thousand. For the year ended December 31, 2021, the Company recognized a net loss of COP $163,943,170 thousand. As of December 31, 2021, the financial statements reflect an excess of current liabilities over current assets of COP $38,542,373 thousand. Considering only cash and cash equivalents on hand, as of December 31, 2021 we had available resources of COP $8,670,873 thousand. Our ability to continue to operate as a going concern is fully dependent upon the Company obtaining sufficient financing to operate and further develop and expand our operational activities. The ability to achieve profitable operations is in direct correlation to our ability to generate revenues and optimize costs.

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As of the date of this prospectus, management has performed its evaluation and executed a laser focused plan to minimize cash burn and work toward profitability to help the company rely less on external funding going forward. We recently executed a financing round of up to U.S.$17 million to fund our operations, of which we raised U.S.$9.78 million in equity and U.S.$2.77 million in debt. Additionally, we are raising a bridge financing of U.S.$8.3 million in convertible debt, of which we received U.S.$2.22 million in a first tranche and U.S.$3.57 million in a second tranche of such bridge. We are currently seeking additional funding of U.S.$2.50 million in the second tranche. While the Company believes it will have access to capital financing from the stockholders, no assurance can be given that such financing will be available on a timely basis or at all.

As of March 10, 2023, we had operational overdue liabilities for U.S.$3.2 million (disregarding expenses in connection with this Offering (See "Expenses of the Offering")) and had some delays regarding payments to suppliers. Considering these operational overdue liabilities, we have put in place a detailed cash action plan for the coming months to minimize cash consumption and, in some cases, have renegotiated payment terms with suppliers. If we are unsuccessful in addressing any of these risks relating to these operational overdue liabilities, our business, financial condition, and results of operations may be materially and adversely affected.

***Our auditors have made reference to the material uncertainty as to our ability to continue as a going concern, there is no assurance that we will be able to continue as a going concern.***

We have determined that there is material uncertainty as to our ability to continue as a going concern as of December 31, 2022. Our external auditors have included a reference as to this matter in their audit report on our consolidated financial statements as of and for the years ended December 31, 2021 and 2022. Our audited financial statements as of and for the years ended December 30, 2021 and 2022, both included in this prospectus, have been prepared assuming that we will continue as a going concern.

Because the Company has determined that a material uncertainty exists as to whether the Company can continue as a going concern, it may be more difficult for the Company to attract investors. Since we have determined that an uncertainty exists about our ability to continue as a going concern, this typically results in greater difficulty to obtain loans than businesses that do not have a qualified auditor's opinion. Additionally, any loans we might obtain may be on less advantageous terms. Our future is dependent upon our ability to obtain financing and upon future profitable operations from our business.

***Our debt financing agreements contain restrictive covenants. Our failure to comply with applicable debt financing covenants and agreements could have a material adverse effect on our business, results of operations and financial condition.***

The terms of our existing debt financing agreements contain, and any future debt financing agreements we enter into may contain, financial, maintenance, organizational, operational or other restrictive covenants. If we are unable to comply with these covenants or service our debt, we may be forced to reduce or delay planned expenditures and growth plans, any of which could result in a material adverse effect upon our business, results of operations and financial condition.

On December 20, 2022, we obtained a limited waiver from IDB-I (the "Amendment No. 1 and Undertaking Agreement") under the loan agreement we entered into with IDB-I on April 27, 2022 (the "IDB-I Loan Agreement") for U.S.$3,180,000. Pursuant to the Amendment No. 1 and Undertaking Agreement, IDB-I waived the following defaults on covenants under the IDB-I Loan Agreement: (i) our obligation to establish a succession plan for individuals to assume relevant internal positions for our operations, (ii) our obligation to deliver within 45 days after each financial quarter a certificate of an authorized representative including an explanation of the key operating variables and calculations in reasonable detail demonstrating compliance with the financial covenants under the IDB-I Loan Agreement, or detailing any non-compliance, and (iii) our obligation to provide, after each financial quarter, the management statements and presentations delivered to the board of directors showing our and our subsidiaries' financial performance. Pursuant to the Amendment No. 1 and Undertaking Agreement, we are required to comply with such obligations no later than June 30, 2023. As of the date hereof, we have complied with our obligation to establish a succession plan. Management is actively working on complying with the pending requirements. Non-compliance allows IDB-I to accelerate the outstanding debt, which we are not expected to have the financial resources to repay. Given that the remaining obligations are within our control and are not based on financial metrics we need to maintain, we expect to be able to comply with the pending requirements by June 30, 2023, and have therefore presented such outstanding loan as non-current as of December 31, 2022.

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On February 15, 2023, we obtained a limited waiver from IDB-I (the "Limited Waiver and Amendment No. 2") under the IDB-I Loan Agreement with respect to our obligations not to incur senior debt or certain financial debt. Pursuant to the Limited Waiver and Amendment No. 2, IDB-I waived such obligations insofar as such covenants would prohibit us from the incurrence of senior indebtedness under certain convertible debt instruments for up to U.S.$4,000,000, with a maturity date not to exceed eighteen (18) months. We expect these convertible debt instruments to be senior to the IDB-I Loan Agreement.

On September 15, 2022, we obtained a limited waiver from Blue like an-Orange Sustainable Capital — Latin American Holdings II S.A.R.L ("BLAO") under the loan agreement entered into with BLAO on April 26, 2022 for U.S.$18,000,000 (the "BLAO Loan Agreement"). Pursuant to such waiver, BLAO waived (i) certain defaults on conditions precedent to all disbursements under the BLAO Loan Agreement and (ii) certain conditions to the disbursement procedure of the interest reserve amount, which allowed us to receive U.S.$2 million from the interest reserve account held with BLAO. On November 14, 2022, we obtained another limited waiver and amendment (the "BLAO Waiver 2") under the BLAO Loan Agreement, pursuant to which BLAO waived our obligation to make the relevant interest payment on October 15, 2022 and any event of default that may result. Additionally, we agreed to amend the BLAO Loan Agreement to capitalize such interest payment and include it in the outstanding amount of principal effective as of October 15, 2022 and to allow for the Corporate Reorganization. The BLAO Loan Agreement was assigned by BLAO to its affiliate Blue Like An Orange Sustainable Capital Fund SICAV-SIF SCS ("BLAO SICAV-SIF") on February 23, 2023 (the "BLAO Assignment"). As of the date of this prospectus, we are in compliance with the BLAO Loan Agreement.

We cannot project with certainty that we will meet all future covenant obligations or that we will be able to obtain the necessary waivers in the future. If we are unable to comply with our covenants, we cannot be certain that our lender will grant us future waivers, which could result in any or all of the impacts noted above and could result in a material adverse effect upon our business, results of operations and financial condition.

#### We depend on key personnel, the loss of which could have a material adverse effect on us.
Our performance depends substantially on the continued services and on the performance of our senior management and other key personnel. Our ability to retain and motivate these and other officers and employees is fundamental to our performance.

Our future success also depends on our ability to identify, attract, hire, train, retain and motivate other highly skilled technical, managerial, marketing and customer service personnel. Competition for these personnel is intense, and we cannot assure you that we will be able to successfully attract and retain sufficiently qualified personnel.

***We may have inadequate business insurance coverage, which would require us to spend significant resources in the event of a disruption of our services or other contingency.***

Any business disruption, litigation, system failure or natural disaster may cause us to incur substantial costs and divert resources, which could have a material adverse effect on our business, results of operations and financial condition. Currently due to the need of allocating our resources in the relevant streams that secure the continuity of business, customer engagement and profitability, we do not have an adequate business insurance coverage that may allow us to seek compensation for any fortuitous cause related to the industry.

***Our future success depends on our ability to expand and adapt our operations to meet rapidly changing industry and technology standards in a cost-effective and timely manner. These expansion efforts place, and are expected to continue to place, a significant strain on our management, operational and financial resources.***

Rapid, significant, and disruptive technological changes impact the industries in which we operate, and we cannot predict the effects of technological changes on our business. Our success depends on our ability to develop and incorporate new technologies and adapt to technological changes and evolving industry standards; if we are unable to do so in a timely or cost-effective manner, our business could be adversely affected.

We must constantly update software, enhance and improve our billing and transaction systems, and add and train new engineering and other personnel to accommodate the increased use of our platform and the new products and features we regularly introduce. This process is expensive, and the increasing complexity and enhancement of our offerings and operations results in higher costs to us. Failure to upgrade our technology, features, transaction processing systems, security infrastructure, or network infrastructure to accommodate increased traffic or transaction volume or the increased complexity of our website and or applications could materially harm our business.

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Our revenues depend on prompt and accurate payment and billing processes. Our failure to grow our transaction-processing capabilities to accommodate the increasing number of transactions that must be billed on our website and or applications would materially harm our business and our ability to collect revenue.

Our current and planned systems, procedures and controls, personnel and third-party relationships may not be adequate to support our future operations. Our failure to manage growth effectively could have a material adverse effect on our business, results of operations and financial condition.

#### We may face difficulties as we expand our operations into countries in which we have no prior operating experience.
We may have limited or no experience in the new markets into which we expand. We intend to continue to expand our grocery delivery and other operations into new regions throughout Latin America, which may include expanding into countries other than those in which we currently operate and where we have less familiarity with local procedures. This could involve expanding into less developed countries, which may have less political, social or economic stability and less developed infrastructure and legal systems. As we expand our business into new cities and new countries, we may encounter economic, regulatory, personnel, technological and other difficulties that could increase our expenses or delay our ability to start up our operations or become profitable in such markets. We may need to enter relationships with various strategic partners, suppliers and other online service providers and other third parties necessary to our business, which may lead to execution problems that can affect current and future revenues and operating margins. Furthermore, any new region into which we expand our business or business line that we launch that is not favorably received by customers could damage our reputation and diminish the value of our brand.

All of the above may affect our profitability and could have an adverse effect on our business, financial condition, results of operations and prospects.

***We have a limited operating history and may not succeed in managing or expanding our business across the expansive and diverse markets that we operate in.***

We have a limited operating history upon which to evaluate the viability and sustainability of our businesses. Our history of operating is relatively short, as our Merqueo platform was launched in February 2017. Our historical results may not be indicative of our future performance and you should consider our future prospects in light of the risks and uncertainties of early stage companies operating in rapidly evolving high-tech industries in emerging markets.

In addition, our growing multi-market operations also require certain additional costs, including costs relating to the planning and establishment of a warehouse network, staffing, logistics, intellectual property protection, supplier relations, tariffs and other trade barriers and higher tax rates in certain markets. Some of these risks and uncertainties relate to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• retaining existing customers, attracting new customers, and increasing customer engagement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• selecting consumer goods portfolios that appeal to the tastes and preferences of customers in each market;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• recruiting and retaining talented and capable management and employees in various markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• maintaining growth rates across our businesses in multiple markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increasing awareness of our brand and other marketing strategies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• adapting to competitive market conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• adapting to consumer behavior;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• building strong networks with new construction providers, marketing providers, landlords and merchandise suppliers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• upgrading our technology and infrastructure to support increased traffic and expanded offerings of content and services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• challenges caused by language and cultural differences;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• implementing our businesses, technology infrastructure and systems in a manner that complies with local laws and practices, which may differ significantly from market to market;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• maintaining adequate internal and accounting control across various markets, each with its own accounting principles that must be reconciled upon consolidation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• currency exchange rate fluctuations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• protectionist laws and business practices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• complex local tax regimes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• potential political, economic, and social instability; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• higher costs associated with doing business in multiple markets.

If we are unsuccessful in addressing any of these risks and uncertainties, our business, financial condition, and results of operations may be materially and adversely affected.

***We have not completed any acquisitions of new business. We may be unable to successfully acquire and integrate suitable businesses. The integration of businesses will present significant challenges that may result in the combined business not operating as effectively as expected or in the failure to achieve some or all of the anticipated benefits of the transactions.***

Any businesses we acquire may not perform as well as we expect. Failure to manage and successfully integrate future acquired businesses and technologies, including managing internal controls and any privacy or data security risks associated with such acquisitions, may harm our operating results and expansion prospects. The process of integrating an acquired company, business, or technology or acquired personnel into our Company is subject to various risks and challenges, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• diverting management time and focus from operating our business to acquisition integration;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• disrupting our ongoing business operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• platform user acceptance of the acquired company's offerings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• implementing or remediating the controls, procedures, and policies of the acquired company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• integrating the acquired business onto our systems and ensuring the acquired business meets our financial reporting requirements and timelines;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• retaining and integrating acquired employees, including aligning incentives between acquired employees and existing employees, as well as managing costs associated with eliminating redundancies or transferring employees on acceptable terms with minimal business disruption;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• maintaining important business relationships and contracts of the acquired business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• liability for pre-acquisition activities of the acquired company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• litigation or other claims or liabilities arising in connection with the acquisition or the acquired company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• impairment charges associated with goodwill, long-lived assets, investments, and other acquired intangible assets.

Further, negotiations for potential acquisitions or other transactions may result in the diversion of our management's time and significant out-of-pocket costs. We may expend significant cash or incur substantial debt to finance such acquisitions, and such indebtedness may restrict our business or require the use of available cash to make interest and principal payments. In addition, we may finance or otherwise complete acquisitions by issuing

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equity or convertible debt securities, which may result in dilution to our stockholders, or if such convertible debt securities are not converted, significant cash outlays. If we fail to evaluate and execute acquisitions successfully or fail to successfully address any of these risks, our business, financial condition, and operating results may be harmed.

We may not receive a favorable return on investment for prior or future business combinations, and we cannot predict whether these transactions will be accretive to the value of our ordinary shares. It is also possible that acquisitions, combinations, divestitures, joint ventures, or other strategic transactions we announce could be viewed negatively by the press, investors, platform users, or regulators, any or all of which may adversely affect our reputation and our business. Any of these factors may adversely affect our ability to consummate a transaction, our financial condition, and our operating results.

The benefits and synergies expected to result from potential acquisitions or other transactions will depend in part on whether our operations and those of the acquired businesses can be integrated in a timely and efficient manner. We will face significant challenges in consolidating our functions with those of the acquired businesses, and integrating the organizations, procedures and operations of the two businesses. The integration of our Company with acquired businesses will be complex and time-consuming, and the managements of both companies will have to dedicate substantial time and resources to it. Failure to successfully integrate the operations of our Company with acquired businesses could result in the failure to achieve some or all of the anticipated benefits of the transaction, including synergies and other operating efficiencies, and could have an adverse effect on the business, results of operations, financial condition or prospects of our Company after the transaction.

***We may not realize benefits from future strategic acquisitions of businesses, technologies, services or products despite their costs in cash and dilution to our stockholders.***

We intend to continue to acquire businesses, technologies, services or products as appropriate opportunities arise. We may not, however, be able to identify, negotiate or finance such future acquisitions successfully or at favorable valuations, or to effectively integrate these acquisitions with our current business. The process of integrating an acquired business, technology, service or product into our business may result in unforeseen operating difficulties and expenditures, and may generate unforeseen pressures and/or strains on our organizational culture.

Acquisitions could result in potentially dilutive issuances of equity securities, the incurrence of debt, contingent liabilities and/or amortization expenses related to intangible assets and impairment of goodwill, which could materially adversely affect our business, results of operations and financial condition. Any future acquisitions might require us to obtain additional equity or debt financing, which might not be available on favorable terms, or at all. If debt financing for potential future acquisitions is unavailable, we may determine to issue ordinary shares, in connection with such an acquisition and any such issuance could result in the dilution of our ordinary shares.

#### Risks Related to Intellectual Property
***Any delay or problem with operating or upgrading our existing information technology infrastructure could cause a disruption in our business and adversely impact our financial results.***

Our ability to operate our business on a day-to-day basis largely depends on the efficient operation of our information technology infrastructure and our cloud providers. Our operations and technology systems are susceptible to frauds, including, but not limited to, payment frauds, which may materially adverse our business, results of operations and financial condition. We have been and are susceptible to hacking into our systems or other security breaches by unauthorized third parties. We are also susceptible to errors in connection with any systems upgrade or migration to a different hardware or software system, errors or incidents of our cloud providers, bugs or other problems for any of the software we use, either developed in-house or provided by third parties. Financial, regulatory, or other problems that might prevent these third parties from providing services to us or our customers could make completing transactions on our platform more difficult, which would harm our business. Any security breach at one of these companies could also affect our customers and harm our business.

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Most of our systems for operating our business run on public cloud systems in several locations including the regions of Virginia and Oregon, and in each of these regions we have at least three (3) different zones available. Our backups are stored in the same regions. These systems (whether over the public cloud or at a datacenter) and operations are vulnerable to damage or interruption from earthquakes, tornadoes, floods, fires, and other natural disasters, power loss, computer viruses, telecommunication failures, physical or electronic break-ins, sabotage, intentional acts of vandalism, terrorism, and similar events.

The public cloud provider could also decide to close their facilities. Our disaster recovery plan may not be sufficient. Any steps that we may take to upgrade and improve the stability and efficiency of our information technology may not be sufficient to avoid defects or disruptions in our technology infrastructure, which could cause a disruption in our business and adversely impact our financial results. We may have inadequate insurance coverage to compensate for any related losses. Any errors, defects, disruptions, interruptions, delays or cessation of service could result in significant disruptions to our business that could ultimately be more expensive, time consuming, and resource intensive than anticipated. Defects or disruptions in our technology infrastructure could adversely impact our ability to process transactions on our site or fulfill orders, which could reduce our revenue, adversely affect our reputation with, or result in the loss of customers and negatively impact our financial results.

#### Our business depends upon the interoperability of our platform across devices, operating systems, and third-party applications that we do not control.
One of the most important features of our platform is its broad interoperability with a range of devices, operating systems, and third-party applications. Our platform is accessible from the web and from devices running various operating systems such as iOS and Android. We depend on the accessibility of our platform across these third-party operating systems and applications that we do not control. Moreover, third-party services and products are constantly evolving, and we may not be able to modify our platform to assure its compatibility with that of other third parties following development changes. The loss of interoperability, whether due to actions of third parties or otherwise, could adversely affect our business.

#### We may not be able to secure licenses for technologies on which we rely.
We rely on certain technologies that we license from third parties that supply key database technology, operating systems and specific hardware components for our services. We cannot assure you that these technology licenses will continue to be available to us on commercially reasonable terms. If we were not able to make use of this technology, we would need to obtain substitute technology that may be of lower quality or performance standards or at greater cost, which could materially adversely affect our business, results of operations and financial condition. Although we generally have been able to renew or extend the terms of contractual arrangements with these service providers on acceptable terms, we cannot assure you that we will continue to be able to do so in the future.

#### Problems that affect our service providers could potentially adversely affect us as well.
A number of parties provide services to us. These services include the hosting of our servers, delivery services and payments infrastructures that allow us to deliver goods to our customers and accept payments. Financial, regulatory, or other problems that might prevent these companies from providing services to us could make completing transactions or delivering goods to our customers more difficult, which would harm our business. Any security breach at one of these companies could also affect our customers and harm our business.

***We rely on third parties for the payment processing infrastructure underlying our platform. If the services provided by these third-parties become unavailable or unavailable on favorable terms, our business could be adversely affected.***

The convenient payment mechanisms provided by our platform are key factors contributing to the development of our business. We rely on third parties for our payment-processing infrastructure to receive payments from customers and to remit payments to delivery personnel, suppliers and third-party merchants using our platform, and these third parties may refuse to renew our agreements with them on commercially reasonable terms or at all. If any payment processing parties with which we are associated become unwilling or unable to provide these services to us on acceptable terms or at all, our business may be disrupted.

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For certain payment methods, including credit and debit cards, we generally pay interchange fees and other processing and gateway fees, and such fees result in significant costs. In addition, online payment providers are under continued pressure to pay increased fees to banks to process funds, and there is no assurance that such online payment providers will not pass any increased costs on to merchant partners, including us. If these fees increase over time, our operating costs will increase, which could adversely affect our business, financial condition, and operating results.

#### We rely upon the internet infrastructure, data center and cloud service providers and telecommunications networks in the markets where we operate.
Our business depends on the performance and reliability of the internet infrastructure and contracted data center and cloud service providers in the markets where we operate. We may not have access to alternative networks or data servers in the event of disruptions or failures of, or other problems with, the relevant internet infrastructure. In addition, the internet infrastructure, especially in the emerging markets where we operate, may not support the demands associated with continued growth in internet usage.

We use third-party data center providers and cloud services for the storing of data related to our business. We do not control the operation of these facilities and rely on contracted agreements to employ their use. The owners of the data center facilities have no obligation to renew their agreements with us on commercially reasonable terms, or at all. If we are unable to renew these agreements on commercially reasonable terms, or if one of our data center providers is acquired by another party, we may be required to transfer our servers and other infrastructure to new data center facilities, or change to other service providers, and we may incur significant costs and possible lengthy service interruptions in connection with doing so. Any changes in third-party service levels at our data centers or any errors, defects, disruptions, or other performance problems could adversely affect our reputation and adversely affect the user experience. Interruptions in our services might reduce our revenue, subject us to potential liability, or adversely affect the level of engagement of our customer base.

We also rely on major telecommunication operators in the markets where we operate to provide us with data communications capacity primarily through local telecommunications lines and data centers to host our servers. We and our customers may not have access to alternative services in the event of disruptions or failures of, or other problems with, the fixed telecommunications networks of these telecommunications operators, or if such operators otherwise fail to provide such services. Any unscheduled service interruption could disrupt our operations, damage our reputation and result in a decrease in our revenue. Furthermore, we have no control over the costs of the services provided by the telecommunications operators to us and our customers. If the prices that we pay for telecommunications and internet services rise significantly, our gross margins could be significantly reduced. In addition, if internet access fees or other charges to internet customers increase, our customer traffic may decrease, which in turn may cause our revenue to decline.

#### We are subject to security breaches or other confidential data theft from our systems, which can adversely affect our reputation and business.
A significant risk associated with e-commerce and communications is the secure transmission of confidential information over public networks. Our business involves the collection, storage, processing, and transmission of customers' personal data, including financial information. We rely on encryption and authentication necessary to provide the security and authentication technology to transmit confidential information securely, including customer credit card numbers and other account information. Advances in computer capabilities, new discoveries in the field of cryptography, or other events or developments may result in a compromise or breach of the technology that we use to protect customer transaction data.

The techniques used to obtain unauthorized, improper or illegal access to our systems, our data or our customers' data, to disable or degrade service, or to sabotage systems are constantly evolving, have become increasingly complex and sophisticated, may be difficult to detect quickly, and often are not recognized until launched against a target. Unauthorized parties have and may continue to attempt to gain access to our systems or facilities through various means, including, among others, hacking into our systems or those of our customers, partners or vendors, or attempting to fraudulently induce our employees, customers, partners, vendors or other customers of our systems into disclosing customer names, passwords, payment card information or other sensitive information, which may in turn be used to access our information technology systems. Although we have developed systems and processes that are designed

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to protect our data and customer data and to prevent data loss and other security breaches, these security measures cannot provide absolute security. Our customers have been and will continue to be targeted by parties using fraudulent "spoof" and "phishing" emails that appear to be legitimate emails sent by us and request that the recipient send the product sold or send a password or other confidential Information. Our information technology and infrastructure have been and may continue to be vulnerable to cyberattacks, security breaches, and third parties may be able to access our customers' personal or proprietary information and card data that are stored on or accessible through those systems. Our security measures may also be breached due to human error, malfeasance, system errors or vulnerabilities, or other irregularities.

Actual or perceived vulnerabilities or data breaches may lead to claims sanctions against us, subject us to investigations or liability, may compromise our reputation, diminish the value of our brands and discourage use of our websites and applications. We also expect to spend significant additional resources to protect against security or privacy breaches, and may be required to address problems caused by breaches. Some of our systems have experienced past security breaches and, although they did not have a material adverse effect on our operating results or reputation, there can be no assurance of a similar result in the future. We cannot assure you that our security measures will prevent security breaches or that failure to prevent them will not have a material adverse effect on our business, results of operations, financial condition and reputation.

We may not be able to anticipate all types of security threats and may not be able to implement effective preventative measures against all such security threats. IT systems, including our servers, are additionally vulnerable to physical or electronic break-ins, security breaches from inadvertent or intentional actions by our employees, third-party service providers, contractors, consultants, business partners, and/or other third parties, or from cyber-attacks by malicious third parties (including the deployment of harmful malware, ransomware, denial-of-service attacks, social engineering, and other means to affect service reliability and threaten the confidentiality, integrity, and availability of information). The risk of a security breach or disruption, particularly through cyber-attacks or cyber intrusion, including by computer hackers, foreign governments, and cyber terrorists, has generally increased as the number, intensity, and sophistication of attempted attacks and intrusions from around the world have increased. We can provide no assurance that our current IT systems, or those of the third parties upon which we rely, are fully protected against cyber security threats. We may not be able to anticipate all types of security threats, and we may not be able to implement preventive measures effective against all such security threats. The techniques used by cyber criminals change frequently, may not be recognized until launched and can originate from a wide variety of sources, including outside groups such as external service providers, organized crime affiliates, terrorist organizations or hostile foreign governments or agencies. It is possible that we or our third-party vendors may experience cybersecurity and other breach incidents that remain undetected for an extended period. Even when a security breach is detected, the full extent of the breach may not be determined immediately. The costs to us to mitigate network security problems, bugs, viruses, worms, malicious software programs and security vulnerabilities could be significant and, while we have implemented security measures to protect our IT and data security infrastructure, our efforts to address these problems may not be successful.

Any system failure, accident or security breach could result in disruptions to our operations or those of our customers. A material network breach in the security of our IT systems could include the theft of our intellectual property (including our trade secrets), customer information, human resources information or other confidential matter or the theft of the confidential information of our customers. To the extent that any disruption or security breach results in a loss or damage to our or our customers' data, or an inappropriate disclosure of confidential, proprietary or customer information, it could cause significant damage to our reputation, affect our relationships with our customers, lead to claims against the Company and ultimately harm our business. In addition, we may be required to incur significant costs to protect against damage caused by these disruptions or security breaches in the future. If our IT systems fail and our redundant systems or disaster recovery plans are not adequate to address such failures, or if our business interruption insurance does not sufficiently compensate us for any losses that we may incur, our revenues and profits could be reduced and the reputation of our brand and our business could be materially and adversely affected.

In addition, any breaches of network or data security of companies we acquire or of our customers, partners or vendors, including parties that provide services to us or to our customers, could have similar negative effects.

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***We may not be able to adequately protect and enforce our intellectual property rights. We could potentially face claims alleging that our technologies infringe the property rights of others.***

We regard the protection of our intellectual property rights as critical to our future success and rely on a combination of copyright, trademark and trade secret laws and contractual restrictions to establish and protect our proprietary rights in our products and services. We have entered into confidentiality and intellectual property assignment agreements with our employees and certain contractors, and non-disclosure agreements with our employees, contractors and certain suppliers and strategic partners for that purpose. We cannot assure you that these contractual arrangements or the other steps that we have taken or will take in the future to protect our intellectual property will prove sufficient to prevent misappropriation of our technology, prevent counterfeit sale of our products, or deter independent third-parties from developing similar or competing technologies.

We pursue the registration of our intangible assets in each country where we operate, especially our trademarks. However, regarding the technology behind our apps, we currently have an internal protection policy that does not take into account Colombian law, and relies (i) on the secrecy of the source code of the technology, (ii) having NDA agreements with all relevant employees of the technology team, and (iii) transfer of proprietary rights in place. Lack of regulation for these matters in Colombia would cause us to register the source code as copyright (i.e. similar to a book or a song) which would make the source code available for consultation by third parties and could materially and adversely affect our operations. Additionally, registration as copyright under Colombian law implies a complex and unnecessary procedure as each version of the source code would have to be registered as copyright to obtain the legal protection which is a very complex process to undergo and would delay the release of new technology, situation that happens at least two or three times per month. Effective intellectual property rights protection may not be available or granted to us by the appropriate regulatory authority in every country in which our services are made available online. We cannot assure you that we will always succeed in obtaining the intellectual property rights protection we need. If we are not successful in protecting our brands against third-party infringers we may also have to modify our brand name in certain countries. Any of these circumstances could adversely affect our business, results of operations and financial condition.

To date, we have not been notified that our technology or products infringe on the proprietary rights of third parties, but third parties may claim infringement on our part with respect to past, current or future technologies or features of our services or of our products. For instance, third party claims may arise if, although it would be inconsistent with our Code of Ethics, our employees include third parties' software without their authorization. We expect that participants in our markets will be increasingly subject to infringement claims as the number of services and competitors in the e-commerce segment grows. Any of these claims could be expensive and time consuming to litigate or settle and could have a material adverse effect upon our business, results of operations and financial condition.

Third parties may misappropriate our brand by creating social media accounts claiming to be, or to be associated with, our brand. In addition, "copycat" or piracy-based platforms or apps may misappropriate our brand or attempt to imitate our Company or our service offerings, in particular in countries where we do not have operations. In some cases, this content may compete with our own content or divert our customers. If we become aware of such activity, we may employ technological and legal measures in an attempt to halt their operations if these efforts are commercially reasonable.

We may not be able to detect all such actions in a timely manner and, even if we could, technological and legal measures when employed may be insufficient to stop these activities. In such cases, our available remedies may not be adequate to protect against such actors or the consequences of impersonations of our brand. Regardless of whether we can successfully enforce our rights against imitators of our brand, any measures that we may take could require significant financial or other resources. Imitators could lure away some of our users or potential users or advertisers or reduce our market share, causing material and adverse effects to our business, financial condition, results of operations and prospects.

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#### Risks related to Regulatory and Legal Matters
***We are subject to extensive government regulation and oversight. Failure to comply with existing and future rules and regulations in the jurisdictions in which we operate could adversely affect the operations of one or more of our businesses in those jurisdictions.***

Our business is subject to the laws, rules, regulations and policies in the countries in which we operate, as well as the legal interpretation of such regulations by administrative bodies and the judiciary of those countries, including, but not limited to, those listed below. The expansion of our geographic footprint and offerings of additional products and services may also result in increased regulatory oversight and enforcement, as well as increased licensing requirements or operating regulatory restrictions.

Enforcement of, failure, or perceived failure to comply with these regulations could result in lawsuits, penalties, fines, forfeiture of significant assets, an outright or partial restriction on our operations, enforcement in one or more jurisdictions, additional compliance, and licensure requirements, and force us to change the way we or our customers do business, which could adversely affect the operations of our businesses in those jurisdictions.

*Privacy and customer Data Protection*

We are subject to laws relating to the collection, use, storage, and transfer of personal data about our suppliers, third-party contractors, employees and, principally, our customers. We expect that these regulations will increase both in number and in the level of stringency in ways we cannot predict, including with respect to evolving technologies such as cloud computing, artificial intelligence, machine learning, and block chain technology. Should we fail to comply with these laws, which apply to our interactions with third parties, transfers of information amongst our employees and third-party contractors in the course of their work for us, our subsidiaries, and other parties with which we have commercial relations, we may be subject to significant penalties and negative publicity, which would adversely affect us.

*Consumer Protection*

Government and consumer protection agencies have in the past and may continue to receive complaints about our products and services. These complaints are small as a percentage of our total transactions, but they could become large in aggregate (absolute) numbers over time. From time to time, we are involved in disputes or regulatory inquiries that arise in the ordinary course of business. The number and significance of these disputes and inquiries have increased as our business has expanded. We are likely to receive new inquiries from regulatory agencies in the future, which may lead to actions against us, and we may be subject to enforcement actions, injunctions, fines or penalties, civil damages or forced to change our operating practices in ways that could harm our business and cause us to incur substantial costs.

*Competition*

In the future, we may receive scrutiny from various governmental agencies under competition laws in the countries where we operate. Some jurisdictions also provide private rights of action for competitors or consumers to assert claims of anti-competitive conduct. Other companies or governmental agencies may allege that our actions violate antitrust or competition laws, or otherwise constitute unfair competition. Contractual agreements with buyers, sellers, or other companies could give rise to regulatory action, antitrust investigations, or litigation. Also, our business practices could give rise to regulatory action, antitrust investigations, or litigation. Some regulators may perceive our business to have such a degree of market power that otherwise uncontroversial business practices could be deemed anticompetitive. Such claims and investigations, even if without foundation, typically are very expensive to defend, involve negative publicity and substantial diversion of management time and effort, and could result in significant judgments against us.

*Anti-Money Laundering and Counter Terrorism Financing*

Merqueo is subject to anti-money laundering and counter terrorism financing laws and regulations that prohibit, among other things, its involvement in transferring the proceeds of criminal activities or imposing obligations to provide certain information about transactions that have occurred on our platform, or about transactions to which we have been a party. Because laws and regulations differ in each of the jurisdictions where we operate, as we roll out and adapt our platform in new jurisdictions, additional verification and reporting requirements could apply. These

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regulations and requirements, as well as any future regulations, could raise our costs significantly. Failure to comply with anti-money laundering and counter terrorism financing laws could result in significant criminal and civil lawsuits, penalties, and forfeiture of significant assets.

*Sale, Storage and/or Transportation of Goods and Services*

We are subject to potential liability for goods sold by third-parties, using the Merqueo platform. Foods and beverages generally, as well as certain goods that we sell to our customers, such as alcohol and other goods may be subject to extensive regulation. We cannot provide any assurances that we will successfully avoid civil or criminal liability for unlawful activities that third-party sellers using our platform carry out in the future. If we suffer potential liability for any unlawful activities of third party, sellers or our customers through sales made on our platform, we may need to implement additional measures to reduce our exposure to this liability, which may require, among other things, that we spend substantial resources and/or discontinue certain service offerings. Any costs that we incur as a result of this liability or asserted liability could have a material adverse effect on our business, results of operations and financial condition.

Additionally, regulations regarding the transportation of goods and services in the jurisdictions in which we have operations tends to vary significantly as these services were not regulated in a proper manner before their steady development. Regulation that limits timing, speed, duration, protection of products and deliveries may change from time to time.

#### We may be subject to risks related to litigation and regulatory proceedings.
We may be, and in some instances have been, subject to claims, lawsuits (including class actions and individual lawsuits), regulatory and government investigations, and other proceedings relating to consumer protection, privacy, labor and employment, competition, securities, tax, marketing and communications practices, contracts, commercial disputes and various other matters. We may also be subject to claims or lawsuits for infringement or violation of third-party intellectual property rights. The number and significance of our legal disputes and inquiries has increased as we have grown larger, as our business has expanded in scope and geographic reach, and as our services have increased in complexity, which is an expected process in any emerging company with a relevant number of orders, employees and consumers.

Becoming a public company may raise our public profile, which may result in increased litigation as well as increased public awareness of any such litigation, both inside and outside of the regions in which we operate. We will need to defend against such lawsuits, including any appeals, and we may also initiate legal proceedings to protect our rights and interests. There is substantial uncertainty regarding the scope and application of many of the laws and regulations to which we are subject, which increases the risk that we will be subject to claims alleging violations of those laws and regulations. There can be no assurance that we will prevail in any such cases, and any adverse outcome of these cases could have a material adverse effect on our reputation, business and results of operations.

Regardless of the outcome of any particular claim, lawsuit, investigation, dispute or proceeding, any of these types of legal proceedings can have a material and adverse impact on us due to their costs, diversion of our resources, and other factors. We may decide to settle legal disputes on terms that are unfavorable to us. Furthermore, if any litigation to which we are a party is resolved adversely, we may be subject to an unfavorable judgment that we may not choose to appeal or that may not be reversed upon appeal. We may have to seek a license to continue practices found to be in violation of a third party's rights. If we are required or choose to enter into royalty or licensing arrangements, such arrangements may not be available on reasonable terms, or at all, and may significantly increase our operating costs and expenses. As a result, we may also be required to develop or procure alternative non-infringing technology or discontinue the use of technology, and doing so could require significant effort and expense, or may not be feasible. In addition, the terms of any settlement or judgment in connection with any legal claims, lawsuits, or proceedings may require us to cease some or all of our operations, or pay substantial amounts to the other party and could materially and adversely affect our business, financial condition and results of operations.

***A competitive labor market and changes to wage regulations and other employment and labor laws could have an impact on our future results of operations.***

Our success depends in part on our ability to attract and retain qualified personnel in all the businesses, including executives to lead them. We compete with other businesses in our markets in attracting and retaining employees. Tight labor markets, increased overtime, collective bargaining agreements, increased healthcare and pension costs, government-mandated increases in the minimum wage and a higher proportion of full-time employees could result

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in an increase in labor costs, which could materially impact our operating results. A shortage of qualified employees may also require increases in wage and benefit offerings to compete effectively in the hiring and retention of qualified employees or to retain more expensive temporary employees.

A considerable number of our employees are paid at rates related to the government-mandated minimum wage of the regions in which we operate. Any further increases in applicable minimum wage statutes could increase our labor costs, which may adversely affect our results of operations and financial condition. Our ability to meet our labor needs, while controlling wage and labor-related costs, is subject to numerous external factors, including the availability of qualified persons in the workforce in the local markets in which we are located, unemployment levels within those markets, prevailing wage rates, changing demographics, health and other insurance costs and changes in employment and labor laws. Such laws related to employee hours, wages, job classification and benefits could significantly increase operating costs. In the event of increasing wage rates, if we fail to increase our wages competitively, the quality of our workforce could decline, causing our customer service to suffer, while increasing wages for our employees could cause our profit margins to decrease. If we are unable to hire and retain employees capable of meeting our business needs and expectations, our business and brand image may be impaired. Any failure to meet our staffing needs or any material increase in turnover rates of, or any required increases in wages for, our employees may adversely affect our business, results of operations and financial condition.

#### Our business could be affected if some of our contractors or their employees were classified as employees, workers or quasi-employees .
The classification of contractors for the purposes of employment law in the last-mile delivery space is a topic of interest in many jurisdictions. While we are not currently involved in any such proceedings, we may be subject to legal action in this regard from our independent contractors or their employees.

If challenged, we may not be successful in defending the current classification of our independent contractors as independent contractors and not employees in some or all jurisdictions where we operate. Furthermore, the costs associated with defending, settling or resolving future lawsuits (including demands for arbitration) relating to the classification of our independent contractors may be material to our business.

If we are not successful in such proceedings, this could negatively impact the enforceability of arbitration agreements in other legal proceedings, which could have an adverse consequence on our business and financial condition.

Changes to foreign, state, and local laws governing the definition or classification of independent contractors, or judicial decisions regarding independent contractor classification, could require classification of our independent contractors as employees (or workers or quasi-employees where those statuses exist).

In addition, reclassification of independent contractors as employees, workers or quasi-employees where those statuses exist, could lead to groups of reclassified employees by labor unions and similar organizations. If a significant number of them were to become unionized and collective bargaining agreement terms were to deviate significantly from our business model, our business, financial condition, operating results and cash flows could be materially affected. In addition, a labor dispute involving our independent contractors may harm our reputation, disrupt our operations and reduce our net revenues, and the resolution of labor disputes may increase our costs.

In addition, if we are required to classify independent contractors as employees, workers or quasi-employees, this could have a material adverse effect on our businesses, results of operations and financial condition.

Current legal structure of the fleet may bring a legal and reputational risk as independent contractors may initiate lawsuits in order to be deemed to be our employees and may request legal payments including severances. Notwithstanding the above, we have mitigated this risk by implementing a special purposes contract (*Contrato de Encargo a favor a Terceros*) with all our drivers. This contract includes standard commercial agreements and legal provisions in order to avoid an employment relationship and to clarify their role as contractors. This standard contract has not been analyzed or overruled by an employment court.

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#### Changes in labor conditions or labor disruptions such as strikes, work stoppages and slowdowns may increase our costs or negatively affect our financial performance.
A number of our employees may become members of unions. It is possible that relations with the unionized portion of some or all of those workforces could deteriorate or that the workforces could initiate a strike, work stoppage or slowdown in the future. Similar actions by our non-unionized workforce is also possible. In such an event, our business and operating results could be negatively affected and we may not be able to adequately meet the needs of customers by utilizing the remaining unaffected workforce.

While we believe that relations with our employees will continue to be good, we will always face the risk that legislative bodies in the countries in which we operate may approve laws that liberalize even more the procedures for union organization, and there can be no assurance that our non-unionized employees will not become unionized. If a relevant part of our workforce becomes unionized, it could affect our operating expenses. Increased labor costs could increase our costs, resulting in a decrease in our profits or an increase in our losses. There can be no assurance that we will be able to fully absorb any increased labor costs through our efforts to increase efficiencies in other areas of our operations.

Additionally, there is no possibility that we may assure that due to the lack of regulation in connection to our business, collaborative businesses and collaborative apps, the third parties that provide us with the transportation service will not unionize as it recently happened in Colombia in connection with other marketplace apps.

#### Risks Related to Access to Capital and Other Financial Matters

#### There are risks associated with our indebtedness.
The terms of our current indebtedness any debt instruments we enter in the future may contain, covenants that restrict or could restrict, among other things, our business and operations. Failure to pay amounts due under a debt instrument or breach any of its covenants may result in the acceleration of the indebtedness (subject in certain cases to a grace or cure period). Moreover, any such acceleration and required repayment of, or default in respect of, any of our indebtedness could, in turn, constitute an event of default under other debt instruments, thereby resulting in the acceleration and required repayment of other indebtedness we may have. Any of these events could materially adversely affect our liquidity and financial condition.

In addition, changes by any rating agency to our outlook or credit rating could negatively affect the value of both our debt and equity securities and increase our borrowing costs. If our credit ratings are downgraded or other negative action is taken, the interest rates payable by us under our indebtedness may increase. In addition, any downgrades to our credit ratings may affect our ability to obtain additional financing in the future and the terms of any such financing. Any of these factors could adversely affect our financial condition and results of operations.

#### We may need additional capital but may not be able to obtain it on favorable terms or at all.
We may require additional cash capital resources in order to fund future growth and the development of our businesses, including expansion of our business into new markets and any investments or acquisitions we may decide to pursue. If our cash resources are insufficient to satisfy our cash requirements, we may seek to issue additional equity or debt securities or obtain new or expanded credit facilities. Our ability to obtain external financing in the future is subject to a variety of uncertainties, including market conditions, our future financial condition, results of operations, cash flows, share price performance, liquidity of international capital and lending markets, governmental regulations over foreign investment and the e-commerce industry in the regions in which we operate. In addition, incurring indebtedness would subject us to increased debt service obligations and could result in operating and financing covenants that would restrict our operations. There can be no assurance that financing will be available in a timely manner or in amounts or on terms acceptable to us, or at all. Any failure to raise needed funds on terms favorable to us, or at all, could severely restrict our liquidity, our ability to fund future growth and the development of our businesses, including expansion of our business into new markets and any investments or acquisitions we may decide to pursue, as well as have a material adverse effect on our business, financial condition and results of operations. Moreover, any issuance of equity or equity-linked securities could result in significant dilution to our existing shareholders.

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#### Inflation may have adverse effects on the economies of the countries where we operate, our business and our operations.
Latin American countries on average have historically experienced high inflation rates relative to those of developed economies and this may continue to be the case in the future. According to the National Administrative Department of Statistics (DANE), overall inflation in Colombia was 13.12% in 2022 and 5.62% in 2021. Food inflation was 27.81% in 2022 and 17.23% in 2021. According to the Brazilian Geography and Statistics Institute (IBGE), overall inflation in Brazil was 5.79% in 2022 and 10.06% in 2021. Food inflation was 11.9% in 2022 and 7.94% in 2021. In Colombia, inflation for 2022 was well above the 5-year and 10-year averages. In Brazil, the 2021 December overall inflation was 10.06%, approximately twice the 5-year average of overall inflation. In 2022, Brazil overall inflation (5.79%) was within historical averages.

For example, the following table shows that average December annual inflation of Colombia and Brazil was higher than that of the US:

---

| | | | |
|:---|:---|:---|:---|
|  | **December annual inflation** | **December annual inflation** | **December annual inflation** |
|  | **U.S.<sup>(1)</sup>** | **Brazil<sup>(2)</sup>** | **Colombia<sup>(3)</sup>** |
|  Last 5-yr average | 3.46% | 5.69% | 5.47% |
|  Last 10-yr average | 2.67% | 6.07% | 4.95% |

---

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(1) The consumer price index for the U.S. is calculated and issued by U.S. Bureau of Labor Statistics.

(2) Brazilian Geography and Statistics Institute (IBGE)

(3) According to DANE

Accelerated inflation increases may affect our primary operating costs, such as the cost of goods sold, transportation, warehouse rentals, energy costs and labor cost. These operating costs are generally indexed to or correlated with inflation. For example, the contracts of our warehouses are indexed to inflation and rental prices are adjusted every year.

Although as of the date of this prospectus we have not yet experienced material impacts from the accelerated inflation, we are likely to have relevant increases in our transportation costs as gas prices have risen, as well as in warehouse rent and labor as of 2023. Additionally, inflation and interest rates hikes usually have a negative impact on the purchasing power of our customers considering the cost of goods and services increases while the cost of borrowing also increases. This situation may cause consumers to be more conscious of their expenses and therefore less inclined to spend.

While inflation in the retail sector can result in increases in revenues due to increase in the price of goods sold, we may be unable to sufficiently or quickly adjust the price so as to completely offset the effects of inflation on our cost structure. Our margins as a percentage of revenues will likely be impacted on a temporary basis and could potentially be affected indefinitely.

Finally, a high inflation environment would also have negative effects on the level of economic activity and employment in our countries of operation, which could adversely affect consumer confidence. Our results may be affected by the willingness of our customers to spend, the frequency with which they make purchases on our platform, the amount they spend in purchases and their capacity to buy more costly, high-margin products. These changes in consumer behavior may materially and adversely affect us.

#### Central banks' measures to curb inflation through increases in interest rates may also have adverse effects on our operating results.
In the current global economic climate, there is a greater degree of uncertainty and unpredictability in the policy decisions and the setting of interest rates and, as a result, any volatility in interest rates could adversely affect us, including our future financial performance and the market value of our securities. Measures from policy makers seeking to decrease inflation may result in the tightening of monetary policies, including through increases in interest rates.

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As a response to the rapid increase in inflation, countries have rapidly increased interest rates. As a result, the cost of money has increased, which has translated into an increase in credit prices. Starting in October 2021, and as a result of the surge in inflation, the Colombian Central Bank (*Banco de la República*) started a new phase of upward adjustments in the interest rates. As of February 28, 2023 the monetary policy intervention rate, which is the minimum rate at which Colombian financial institutions can borrow from the Colombian Central Bank, was 12.75%, compared to a rate of 4.0% just one year earlier. The Brazilian government's measures to control inflation have often included maintaining a tight monetary policy with high interest rates, thereby restricting the availability of credit and slowing economic growth. The primary instrument of monetary policy of Brazil's Central Bank (*Banco Central do Brasil*) is the Selic rate, which as of February 28, 2023 is at a 13.8% target.

Increased interest rates have a direct impact on our cost of borrowing, more specifically in the cost of financial debt indexed to the Bank Reference Indicator rate (*Indicador Bancario de Referencia,* or "IBR") which is an interest rate denominated in Colombian pesos at which, on average, banks are willing to loan or borrow and the Time Deposit rate (*Tasa para Depósitos a Término Fijo*, or "DTF"), which is an indicator of the yield of term deposits paid by banks in Colombia, respectively, and the cost of debt indexed to the SOFR. We are exposed to interest rate risk mainly due to interest-bearing loans and borrowings held at variable rates. On the other hand, fixed-interest loans expose us to interest rate risk at fair value, which reflects that we might be paying interests at rates significantly different from those of an observable market. As of December 31, 2021, 5% of our financings were denominated at a fixed rate and 95% at a variable rate. As of December 31, 2022, 5% of our financings are denominated at a fixed rate and 95% at a variable rate. As of December 31, 2021 and 2022, if interest rates on variable rate loans are increased or decreased by 100 basis points in relation to the rate in effect, the financial expense in profit and loss and to stockholders' equity of the Company would change by COP $74,123 thousand and COP $1,092,786 thousand, respectively. If we borrow variable interest debt in Brazil in the future, we will have exposure to interest rate risk in Brazil as well.

Increased interest rates may have an indirect impact on our costs as our suppliers may pass along their increased cost of debt to us. We are unable to quantify the magnitude of this impact on our operations and financial results. We may be able to pass along our increased costs to our customers only to the extent that our competitors also increase prices. If we exceed price increases of competitors substantially and indefinitely, we will no longer be a competitive alternative and we may lose market share, which could slow our growth. If we have a higher exposure to variable interest than our competitors, we will be unable to fully pass along this cost while remaining competitive in the market. In that scenario, we would need to sacrifice margins to remain competitive.

***The requirements of being a public company may strain our resources, divert management's attention, and affect our ability to attract and retain executive management and qualified board members.***

As a public company, we will be subject to the reporting requirements of the Exchange Act, the listing standards of the Nasdaq Global Market, and other applicable securities rules and regulations. We expect that the requirements of these rules and regulations will continue to increase our legal, accounting, and financial compliance costs, make some activities more difficult, time-consuming, and costly, and place significant strain on our personnel, systems, and resources. Further, several members of our management team do not have prior experience in running a public company. For example, the Exchange Act requires, among other things, that we file annual, quarterly, and current reports with respect to our business and results of operations. As a result of the complexity involved in complying with the rules and regulations applicable to public companies, our management's attention may be diverted from other business concerns, which could harm our business, results of operations, and financial condition.

Although we expect to hire additional employees to assist us in complying with these requirements, we may need to hire more employees in the future or engage outside consultants, which will increase our operating expenses. In addition, changing laws, regulations, and standards relating to corporate governance and public disclosure create uncertainty for public companies, increasing legal and financial compliance costs, and making some activities more time-consuming. These laws, regulations, and standards are subject to varying interpretations, in many cases due to their lack of specificity, and, as a result, their application in practice may evolve over time as new guidance is provided by regulatory and governing bodies. This could result in continuing uncertainty regarding compliance matters and higher costs necessitated by ongoing revisions to disclosure and governance practices. We intend to invest substantial resources to comply with evolving laws, regulations, and standards, and this investment may result in increased general and administrative expense and a diversion of management's time and attention from business operations to compliance activities.

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If our efforts to comply with new laws, regulations, and standards differ from the activities intended by regulatory or governing bodies due to ambiguities related to their application and practice, regulatory authorities may initiate legal proceedings against us, and our business may be harmed. We also expect that being a public company that is subject to these new rules and regulations will make it more expensive for us to obtain director and officer liability insurance, and we may be required to accept reduced coverage or incur substantially higher costs to obtain coverage. These factors could also make it more difficult for us to attract and retain qualified members of our board of directors, particularly members who can serve on our audit committee and compensation committee, and qualified executive officers.

As a result of the disclosure obligations required of a public company, our business and financial condition will become more visible, which may result in an increased risk of threatened or actual litigation, including by competitors and other third parties. If such claims are successful, our business, results of operations, and financial condition would be harmed, and even if the claims do not result in litigation or are resolved in our favor, these claims, and the time and resources necessary to resolve them, would divert the resources of our management and harm our business, results of operations, and financial condition.

#### Risk Related to Political, Regulatory and Legal Risks
***We face the risk of political and economic crises, instability, terrorism, civil strife, labor conflicts, expropriation and other risks of doing business in emerging markets.***

We conduct our operations in emerging market countries in Latin America, which have historically experienced uneven periods of economic growth, as well as recession, periods of high inflation and economic instability. Economic and political developments in these countries, including future economic changes or crises (such as inflation, currency devaluation or recession), government deadlock, political instability, terrorism, civil strife, changes in laws and regulations, labor conflicts, expropriation or nationalization of property, and exchange controls could impact our operations or the market value of our ordinary shares and have a material adverse effect on our business, financial condition and results of operations. Currently, as a consequence of adverse economic conditions in the global markets due to disruption in the global supply chain, Ukraine's invasion and the widespread inflation, some Latin American economies are going through interest rate hikes, which is likely to slow down growth and some may enter recessions. The duration and severity of this slowdown is hard to predict and could adversely affect our business, financial condition, and results of operations.

Although economic conditions may differ from one country to another, we cannot assure you that events in one country alone will not adversely affect our business, financial condition or the market value of our ordinary shares.

***Latin American governments have exercised and continue to exercise significant influence over the economies of the countries where we operate. This involvement, as well as political and economic conditions, could adversely affect our business.***

Governments in Latin America frequently intervene in the economies of their respective countries and occasionally make significant changes in policy and regulations. Governmental actions to control inflation and other policies and regulations have often involved, among other measures, price controls, currency devaluations, capital controls and limits on imports. Our business, financial condition, results of operations and prospects may be adversely affected by changes in government policies or regulations, including such factors as: exchange rates and exchange control policies; inflation rates; interest rates; tariff and inflation control policies; price control policies; import duties and restrictions; liquidity of domestic capital and lending markets; electricity rationing; tax policies, including royalty, tax increases and retroactive tax claims; and other political, diplomatic, social and economic developments in or affecting the countries where we operate.

Reduced foreign investment in any of the countries where we operate may have a negative impact on such country's economy, affecting interest rates and the ability of companies such as ours to access financial markets.

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***Allegations of corruption against the government, politicians and private industry in the countries where we operate could create economic and political uncertainty and could expose us to additional credit risk.***

Allegations of corruption against the government, politicians and private industry in the countries where we operate could create economic and political uncertainty especially if the investigations triggered by these cases reach conviction or result in further allegations or findings of illicit conduct committed by the accused parties. Furthermore, proven or alleged wrongdoings could have adverse effects on the political and economic stability in such countries. These adverse political and economic effects may negatively impact our business, including by depressing business volumes, reducing our ability to recover amounts we have loaned to persons or projects involved in illicit or allegedly illicit conduct and/or harming our reputation.

#### Changes in economic and political conditions in Colombia and Brazil may adversely affect our financial condition and results of operations.
On May 29, 2022, during the first round of the Colombian presidential elections, Gustavo Petro of the "*Pacto Histórico"* party, a senator and former mayor of Bogota, obtained 40% of the votes, and Rodolfo Hernández of the *"Liga de Gobernantes Anticorrupción"* party, a former mayor of Bucaramanga, received 28% of the votes. A run-off election between these two candidates was held on June 19, 2022, in which Gustavo Petro received a majority of votes with 50.4%. Gustavo Petro was sworn in as President of Colombia on August 7, 2022. Although throughout history elected governments (and the Colombian Congress as well) have pursued free market economic policies, with almost no economic interventions, we cannot predict which policies will be adopted by the new government or congress and whether those policies would have a negative impact on the Colombian economy or our business and financial performance.

On August 7, 2022, Gustavo Petro was sworn in as the new President of Colombia, and our business and results of operations or financial condition may be adversely affected by changes in government or fiscal policies, and other political, diplomatic, social and economic developments that may affect Colombia, including international geopolitical events like the crisis in Ukraine. We cannot predict what policies will be adopted by the Colombian government and whether those policies would have a negative impact on the Colombian economy or our business and financial performance or the market value for the Notes.

Slower economic growth in Colombia, periods of negative growth, material increases in inflation or interest rates or significant fluctuations in exchange rates could affect demand for our services and products, which may require us to lower prices to maintain market share. Because a large percentage of our costs and expenses are fixed, we may not be able to reduce costs and expenses upon the occurrence of any of these events, in which case our profitability could be affected.

On May 19, 2021, Standard and Poor's announced the downgrade of Colombia's long-term foreign currency sovereign risk rating from BBB- to BB+ and the change of its outlook from negative to stable, becoming the first rating agency to downgrade the country's foreign currency investment grade rating. On July 1, 2021, Fitch made a similar announcement. However, Moody's did not downgrade Colombia's rating and on October 6, 2021 announced the ratification of Colombia's sovereign risk rating at Baa2, one level above investment grade. Moody's also changed its outlook from negative to stable.

The recent economic instability in Brazil has contributed to a decline in market confidence in the Brazilian economy as well as to a deteriorating political environment. The negative macroeconomic environment in Brazil in recent years was in part due to economic and political uncertainties resulting from a global decrease in commodities prices as well as due to corruption investigations of Brazilian state-owned and private sector companies, politicians and business executives, which, in turn, led to the ouster and arrest of several prominent politicians. Launched by the Office of the Brazilian Federal Prosecutor at the end of 2014, the so-called Lava Jato investigation investigated members of the Brazilian government and other members of the legislative branch, as well as senior officers and directors of large state-owned companies as well as other companies in connection with allegations of political corruption. The resulting fallout from the Lava Jato operation contributed to the impeachment of Brazil's former president, Dilma Rousseff, in August 2016, the arrest and conviction of former Brazilian president Luiz Inácio Lula da Silva, in April 2018, and the destabilization of the Brazilian economy. In November 2019, former president Luiz Inácio Lula da Silva was released from prison after a Brazilian Supreme Court ruling that allows defendants to remain free while their appeals are pending. In March 2021, a Brazilian Supreme Court ruling annulled the decisions that had convicted former president Luiz Inácio Lula da Silva.

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The first round of general elections in Brazil occurred on October 2, 2022, with former president Luiz Inácio Lula da Silva earning 48.4% of the votes tabulated and Brazil's current president, Jair Messias Bolsonaro, receiving 43.20% of the votes. Given that no candidate won a majority of votes, a second round of elections with these two candidates was held on October 30, 2022, the outcome of which favored former president Luiz Inácio Lula da Silva. The result from the run-off vote may result in further political uncertainty and macroeconomic instability, particularly in the midst of a deeply polarized electorate. Furthermore, there is uncertainty over whether Jair Messias Bolsonaro will challenge the results of the 2022 presidential elections.

In April 2020, the Brazilian Supreme Court began investigating Brazil's current president in connection with allegations made by the former Minister of Justice. In addition, in February 2021, the Brazilian federal government moved to replace the then-chief executive officer of a state-controlled company. These events and further political instability had, and may continue to have, an adverse effect on the Brazilian economy. On April 14, 2021, a Parliamentary Committee Inquiry (*Comissão Parlamentar de Inquérito*, or "CPI") was established to investigate the Brazilian federal government's potential mishandling of the COVID-19 pandemic and collapse of the healthcare system in the Brazilian state of Amazonas in particular at the beginning of 2021, including the potential misuse of government funds. Based on the final report of the CPI, the Attorney General's Office began six new preliminary investigations involving Brazil's current president, members of the Brazilian government and members of the legislative branch, which are under review by the Brazilian Supreme Court.

The potential outcome of these and other inquiries, as well as the effects of the 2022 presidential elections, are uncertain, but they have already had a negative impact on the general perception of the Brazilian economy and the securities of Brazilian companies and have affected and may continue to adversely affect our business, our financial condition and our operating results. We cannot predict whether the ongoing investigations will result in further political and economic instability, or if new allegations against government officials and/or executives of private companies will arise in the future or will result in additional investigations.

A failure by the Brazilian government to implement necessary reforms may result in diminished confidence in the Brazilian government's budgetary condition and fiscal stance, which could result in downgrades of Brazil's sovereign foreign credit rating by credit rating agencies, negatively impact Brazil's economy, lead to further depreciation of the real and an increase in inflation and interest rates, adversely affecting our business, financial condition and results of operations.

Any of the above factors may create additional political uncertainty, which could harm the Brazilian economy and, consequently, our business and the value of our investments in Brazil, and could adversely affect our financial condition, results of operations and the price of our shares.

***The economies of the countries in which we operate are vulnerable to external effects that could be caused by significant economic difficulties experienced by major regional trading partners or by more general contagion effects, which could have a material adverse effect on economic growth in these countries and their ability to service their public debt.***

A significant decline in economic growth or a sustained economic downturn of any of Colombia, or Brazil's major trading partners, (i.e., the European Union, the United States, China and other Latin American countries) could have a material adverse impact on such countries' balance of trade and remittances inflows, resulting in lower economic growth.

Deterioration in the economic and political situation in neighboring countries could adversely affect the economy of the countries in which we operate by disrupting their diplomatic or commercial relationships with neighboring countries. Any future tensions may cause political and economic uncertainty, instability, market volatility, low confidence levels and higher risk aversion by investors and market participants that may negatively affect economic activity in any of those jurisdictions. A decline in the credit rating of the countries where we operate could increase our financing costs and adversely affect our results of operation and financial condition.

Events occurring in a market where we do not operate may cause international investors to have an increased risk perception of an entire region or class of investment, which could in turn negatively affect market prices and liquidity of our securities.

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#### Local currencies used in the conduct of our business are subject to depreciation, volatility and exchange controls.
The currencies of many countries in Latin America, including Colombia and Brazil, which together accounted for 83% and 17% of our net revenues for 2022, respectively, have experienced volatility and significant devaluations in the past. Currency movements, as well as higher interest rates, have materially and adversely affected the economies of many Latin American countries, including countries which account, or are expected to account, for a significant portion of our revenues. The depreciation of local currencies creates inflationary pressures that may have an adverse effect on us and generally restricts access to the international capital markets. Devaluations of the currencies in the countries in which we operate could have a negative impact on our ability to service our foreign currency denominated liabilities, lead to high inflation, significantly reduce real wages, or otherwise have a negative impact on businesses whose success is dependent on domestic market demand.

Our operations in certain countries may be subject to exchange control regulations that might restrict their ability to convert local currencies into U.S. dollars. Colombian law allows the Colombian Central Bank to intervene in the foreign exchange market if the value of the Colombian peso is subject to significant volatility. The government and the Colombian Central Bank may also limit the remittance of dividends and of any proceeds obtained as a result of the liquidation of a foreign investment on a temporary basis whenever the international reserves are below an amount equal to three months of imports, as determined by the Colombian Central Bank. Brazilian law provides that whenever there is a serious imbalance in Brazil's balance of payments or reason to foresee a serious imbalance, the Brazilian government may impose temporary restrictions on the remittance to foreign investors of the proceeds of their investments in Brazil. These and other laws could affect our access to U.S. dollars which could in turn impact our ability to make debt payments, among other things.

***Any additional taxes resulting from changes to tax regulations or the interpretation thereof in Colombia, Brazil, or other countries into which we may expand our operations could adversely affect our consolidated results.***

Uncertainty related to tax legislation represents a constant risk for us. Changes in legislation and regulation and developments resulting from judicial decisions could affect tax burdens by increasing tax rates and fees, creating new taxes, limiting deductions and exemptions, and eliminating incentives and non-taxed income. The governments of the countries in which we currently operate have significant fiscal deficits that could result in future tax increases.

Colombia underwent several tax reforms during the last ten years. On September 14, 2021, the Colombian Congress enacted Law No. 2,155, which is intended to generate tax revenue to cover COVID-19-related expenditures. Although the income tax withholding rates and general regime for payments made to foreign entities was not modified, the general corporate income tax rate was increased to 35%.

On August 8, 2022, the Ministry of Finance submitted a tax reform bill to Congress proposing several changes to the Colombian tax regime, including (i) a new permanent equity tax applicable to Colombian individuals and non-residents, (ii) an increase in the dividend tax rate for local and foreign shareholders, (iii) an increase in the long-term capital gains tax rate (increasing to 30% for corporations and to up to 39% for individual tax residents), and (iv) the elimination of specific tax benefits and exemptions, such as a rule that exempted the taxing of capital gains from the sale of publicly listed shares. The tax reform bill was approved by Colombian congress during the last quarter of 2022, and became effective on January 1, 2023.

On the other hand, tax legislation in Brazil is extremely complex, as is the system that surrounds it. The creation of new taxes depends on constitutional amendments, which are more difficult to approve, however, the varied amount of taxes, such as those under municipal, state and federal competence, make tax expenses the main burden of varied businesses in Brazil. Technology companies are a focus for the creation of new taxes because the sector always implies a way of service that did not previously exist when the Constitution was enacted, therefore, congress believes that technology companies take advantage of paying less taxes although tax expenses are one of the highest expenses of technology companies. Additionally, change of government can also affect the Brazilian Tax System. Depending on the government strategy, priorities are taken in advantage of in some economic sectors.

Changes in the tax laws that impose additional taxes on us in the countries in which we currently operate could negatively affect our results of operations and cash flow. In addition, national or local taxing authorities may not interpret tax regulations in the same way as we do, even though we do not normally adopt aggressive positions on tax law interpretation. Different interpretations of tax regulations could result in future tax audits, litigation and associated costs, which could affect our results.

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#### Growth of e-commerce transactions in Latin America may be slowed down by the lack of robust consumer fraud laws regarding payment methods.
Unlike in the United States, consumers and merchants in Latin America can be held fully liable for credit card and other losses due to third-party fraud. As secure methods of payment for e-commerce transactions have not been widely adopted in Latin America, both consumers and merchants generally have a relatively low level of confidence in the integrity of e-commerce transactions vis-a-vis the United States. In addition, many banks and other financial institutions have generally been reluctant to give merchants the right to process online transactions due to these concerns about credit card fraud. Unless consumer fraud laws in Latin American countries are modified to protect e-commerce merchants and consumers, and until secure, integrated online payment processing methods are fully implemented across the region, our ability to grow our revenues may be limited, which could have a material adverse effect on our Company.

***Fraudulent activity by our users, employees or contractors could negatively impact our operating results, brand and reputation and cause the use of services to decrease.***

We are subject to the risk of fraudulent activity on our platforms by our users, employees and contractors (for example, misappropriations of cash payments by delivery providers). Although we have implemented measures to detect and reduce the occurrence of fraudulent activities, there can be no assurance that these measures will be sufficient to accurately detect, prevent or deter fraud. Our systems could be subject to unauthorized credit card use, identity theft, employee fraud or other internal security breaches. As our sales grow, the cost of remediating for fraudulent activity, including customer reimbursements, may materially increase and could negatively affect our operating results.

#### Colombia has experienced several periods of violence and instability that could affect the economy and our results of operations.
Colombia has experienced periods of criminal violence over the past four decades, primarily due to the activities of guerilla groups and drug cartels. Despite the peace treaty between the Colombian government and the Revolutionary Armed Forces of Colombia (*Fuerzas Armadas Revolucionarias de Colombia*, or FARC), a lasting decrease in violence or drug-related crime in Colombia or the successful integration of former guerilla members into Colombian society, may not be achieved. In 2018, the Colombian government suspended the peace negotiations with the National Liberation Army (*Ejército de Liberación Nacional*) and in 2019, a minority group of dissidents within the FARC announced their return to illegal activities. An escalation of violence or drug-related crime may have a negative impact on the Colombian economy and on us.

#### Any further downgrade in the credit rating of the countries in which we operate could adversely affect the economies of those countries
Colombia's long-term public external indebtedness are currently rated speculative grade by S&P Global Ratings ("S&P") and Fitch Ratings, Inc. ("Fitch"), however, Colombia maintains an investment grade rating from Moody's Investors Services Inc. ("Moody's"). On May 19 and July 1 of 2021, S&P and Fitch, respectively, downgraded Colombia to BB+ from BBB- with a stable outlook. Moody's has rated Colombia Baa2 rating since May 23, 2019. However, on October 6, 2021 Moody´s revised Colombia's outlook from negative to stable.

Brazil's sovereign credit rating is currently rated below investment grade by the three main credit rating agencies. Consequently, the prices of securities offered by companies with significant operations in Brazil have been negatively affected. A prolongation or worsening of the current Brazilian recession and continued political uncertainty, among other factors, could lead to further ratings downgrades.

Ratings address the creditworthiness of the countries where we operate and the likelihood of timely payment of their long-term debt securities. Current ratings of Colombia and Brazil and the rating outlooks currently assigned to each of them depend, in part, on economic conditions and other factors that affect credit risk and are outside the control of those countries, as well as assessments of the creditworthiness of their productive state-owned enterprises. A decline in the credit rating of the countries where we operate could increase our financing costs and adversely affect our results of operation and financial condition.

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#### Risks Related to Our Status as a Foreign Private Issuer

#### As a foreign private issuer, we are not subject to certain corporate governance rules applicable to U.S. listed companies.
As a foreign private issuer that intends to apply to list our ordinary shares on the Nasdaq, we rely on a provision in the Nasdaq corporate governance listing standards that allows us to follow Cayman Islands law with regard to certain aspects of corporate governance. This allows us to follow certain corporate governance practices that differ in significant respects from the corporate governance requirements applicable to U.S. companies listed on the Nasdaq.

For example, we are exempt from Nasdaq regulations that require a listed U.S. company to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• have a majority of the board of directors consist of independent directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• have an independent compensation committee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• director nominees be selected or recommended for selection by either a majority of the independent directors or a nominations committee comprised solely of independent directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• seek shareholder approval for the implementation of certain equity compensation plans and issuances of ordinary shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• independent directors have regularly scheduled meetings with only the independent directors present;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• adopt a code of conduct and promptly disclose any waivers of the code for directors or executive officers that should address certain specified items; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• review related-party transactions.

As a foreign private issuer, we are permitted to follow home country practice in lieu of the above requirements. Our audit committee is required to comply with the provisions Rule 10A-3 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), which is applicable to U.S. companies listed on the Nasdaq. However, because we are a foreign private issuer, our audit committee is not subject to additional Nasdaq corporate governance requirements applicable to listed U.S. companies, including the requirements to have a minimum of three members and to affirmatively determine that all members are "independent," using more stringent criteria than those applicable to us as a foreign private issuer.

***We are a foreign private issuer and, as a result, are not subject to U.S. proxy rules but are subject to reporting obligations that, to some extent, are more lenient and less frequent than those of a U.S. issuer.***

We are a non-U.S. company with foreign private issuer status. Because we qualify as a foreign private issuer under the Exchange Act, and although we follow the laws and regulations of the Cayman Islands with regard to such matters, we are exempt from certain provisions of the Exchange Act that are applicable to U.S. public companies, including: (i) the sections of the Exchange Act regulating the solicitation of proxies, consents or authorizations in respect of a security registered under the Exchange Act, (ii) the sections of the Exchange Act requiring insiders to file public reports of their stock ownership and trading activities and liability for insiders who profit from trades made in a short period of time and (iii) the rules under the Exchange Act requiring the filing of quarterly reports on Form 10-Q containing unaudited financial and other specified information, or current reports on Form 8-K, upon the occurrence of specified significant events. Foreign private issuers are required to file their annual report on Form 20-F within four months after the end of each fiscal year. Foreign private issuers are also exempt from the Regulation Fair Disclosure, aimed at preventing issuers from making selective disclosures of material information. As a result of the above, you may not have the same protections afforded to shareholders of companies that are not foreign private issuers. This may be the case even though we intend to make interim reports available to our shareholders, copies of which we are required to furnish to the SEC on a Form 6-K, and even though we are required to file reports on Form 6-K disclosing whatever information we have made or are required to make public pursuant to Cayman Islands law or distribute to our shareholders and that is material to us.

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***We are a Cayman Islands exempted company and, because judicial precedent regarding the rights of shareholders is more limited under Cayman Islands law than that under U.S. law, you may have less protection for your shareholder rights than you would under U.S. law.***

Our corporate affairs are currently governed by our Amended and Restated Memorandum and Articles of Association, and conditional upon this Registration Statement being declared effective by the SEC, our corporate affairs shall be governed by our Second Amended and Restated Memorandum of Association and Amended and Restated Articles of Association (the "Second Amended and Restated Memorandum of Association and Amended and Restated Articles of Association"), as amended and restated from time to time, the Cayman Islands Companies Act (As Revised) (the "Cayman Companies Act") and the common law of the Cayman Islands. The rights of shareholders to take action against the directors, actions by minority shareholders and the fiduciary responsibilities of our directors to us under Cayman Islands law are to a large extent governed by the common law of the Cayman Islands. The common law of the Cayman Islands is derived in part from comparatively limited judicial precedent in the Cayman Islands as well as that from English common law, which has persuasive, but not binding, authority on a court in the Cayman Islands. The rights of our shareholders and the fiduciary responsibilities of our directors under Cayman Islands law are not as clearly defined as they would be under statutes or judicial precedent in some jurisdictions in the United States. In particular, the Cayman Islands has a less prescriptive body of securities laws than the United States. In addition, some U.S. states, such as Delaware, have more fulsome and judicially interpreted bodies of corporate law than the Cayman Islands. The Cayman Islands companies may not have standing to initiate a shareholders derivative action in a Federal court of the United States.

We have been advised by Conyers, Dill and Pearman LLP, our Cayman Islands legal counsel, that the courts of the Cayman Islands are unlikely (1) to recognize or enforce against us judgments of courts of the United States predicated upon the civil liability provisions of the federal securities laws of the United States or any state, and (2) in original actions brought in the Cayman Islands, to impose liabilities against us predicated upon the civil liability provisions of the federal securities laws of the United States or any state, so far as the liabilities imposed by those provisions are penal in nature. In those circumstances, although there is no statutory enforcement in the Cayman Islands of judgments obtained in the United States, the courts of the Cayman Islands will recognize and enforce a foreign money judgment of a foreign court of competent jurisdiction without retrial on the merits based on the principle that a judgment of a competent foreign court imposes upon the judgment debtor an obligation to pay the sum for which judgment has been given provided certain conditions are met. For a foreign judgment to be enforced in the Cayman Islands, such judgment must be final and conclusive and for a liquidated sum, and must not be in respect of taxes or a fine or penalty, inconsistent with a Cayman Islands judgment in respect of the same matter, impeachable on the grounds of fraud or obtained in a manner, or be of a kind the enforcement of which is, contrary to natural justice or the public policy of the Cayman Islands (awards of punitive or multiple damages may well be held to be contrary to public policy). A Cayman Islands Court may stay enforcement proceedings if concurrent proceedings are being brought elsewhere.

As a result of all of the above, public shareholders may have more difficulty in protecting their interests in the face of actions taken by management, members of the board of directors or controlling shareholders than they would as shareholders of a corporation incorporated in a jurisdiction in the United States.

#### The Cayman Islands Economic Substance Law may affect our operations.
The Cayman Islands enacted the International Tax Co-operation (Economic Substance) Act (As Revised), or the Cayman Economic Substance Act, in January 2019. We are required to comply with the Cayman Economic Substance Act and related regulations and guidelines. As we are a Cayman Islands exempted company, compliance obligations include filing annual notifications, which we will need to state whether we are carrying out any relevant activities and if so, whether we have satisfied economic substance tests to the extent required under the Cayman Economic Substance Act and the filing of an annual return with the Department of International Tax Co-Operation. We may need to allocate additional resources and make changes to its operations in order to comply with all requirements under the Cayman Economic Substance Act. Failure to satisfy these requirements may subject us to penalties under the Cayman Economic Substance Act.

#### The Financial Action Task Force's increased monitoring of the Cayman Islands
In February 2021, the Cayman Islands was added to the Financial Action Task Force ("FATF") list of jurisdictions whose anti-money laundering practices are under increased monitoring, commonly referred to as the "FATF grey list". When the FATF places a jurisdiction under increased monitoring, it means the country has committed to resolve

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swiftly the identified strategic deficiencies within agreed timeframes and is subject to increased monitoring during that timeframe. It is unclear how long this designation will remain in place and what ramifications, if any, the designation will have for us.

***As we are incorporated under the laws of the Cayman Islands, and the Cayman Islands has recently been added to the EU AML high-risk third countries list, it is unclear if and how this designation will impact us***

On March 13, 2022, the European Commission ("EC") updated its list of 'high-risk third countries' ("EU AML List") identified as having strategic deficiencies in their anti-money laundering/counter-terrorist financing regimes. The EC has noted it is committed to greater alignment with the FATF listing process and the addition of the Cayman Islands to the EU AML List is a direct result of the inclusion of the Cayman Islands on the FATF grey list in February 2021. It is unclear how long this designation will remain in place and what ramifications, if any, the designation will have for us.

#### Risks Related to Operating as a Public Company
***We will incur increased costs and expenses as a result of operating as a public company and our management will be required to devote substantial time to compliance with our public company responsibilities and corporate governance practices.***

As a public company, we will incur greater legal, accounting and other expenses than we incurred as a private company. After this Offering, we will be subject to the reporting requirements of the Exchange Act, the Sarbanes-Oxley Act, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the "Dodd-Frank Act"), and the rules and regulations of the Nasdaq, which impose various requirements on public companies, including establishment and maintenance of effective disclosure and financial controls and corporate governance practices. These requirements will increase our legal, accounting, and financial compliance costs and will make some activities more difficult, time-consuming, and costly, and place significant strain on our personnel, systems and resources. For example, we expect these rules and regulations to make it more expensive for us to obtain director and officer liability insurance, and we may be required to accept reduced policy limits and coverage or incur substantially higher costs to maintain the same or similar coverage.

We are evaluating these rules and regulations and cannot predict or estimate the amount of additional costs we may incur or the timing of such costs. These rules and regulations are often subject to varying interpretations, in many cases due to their lack of specificity, and, as a result, their application in practice may evolve over time as new guidance is provided by regulatory and governing bodies. This could result in continuing uncertainty regarding compliance matters and higher costs necessitated by ongoing revisions to disclosure and governance practices.

We will also need to comply with auditor attestation requirements of Section 404 of Sarbanes-Oxley Act. In that regard, as we prepare for such compliance, we will need to hire additional accounting and financial staff with appropriate public company experience and technical accounting knowledge. We cannot predict or estimate the amount of additional costs we may incur or the timing of such costs.

***We have identified material weaknesses in our internal control over financial reporting and if we fail to establish and maintain proper and effective internal control over financial reporting, our operating results and our ability to operate our business could be harmed, and investor confidence and the market price of our ordinary shares may be adversely affected.***

We have identified material weaknesses associated with the internal controls over our financial reporting associated with the lack of controls over our financial close process and insufficient number of personnel resulting in the reliance on external advisors, as we are in the process of designing and implementing an effective internal control environment.

Ensuring that we have adequate internal financial and accounting controls and procedures in place so that we can produce accurate financial statements on a timely basis is a costly and time-consuming effort that needs to be re-evaluated frequently. Our internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with generally accepted accounting principles. Management expects to incorporate additional professionals both in Colombia and Brazil, use a more robust enterprise resource planning (ERP) platform and implement Committee of Sponsoring Organizations (COSO) as its internal control framework.

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The standards on internal control required for a public company under Section 404 of the Sarbanes-Oxley Act of 2002 are significantly more stringent than what has been required of us prior to this Offering. Upon completion of this Offering, we will be required to maintain internal control over financial reporting and to report any material weaknesses in such internal control. The Sarbanes-Oxley Act requires that we evaluate and determine the effectiveness of our internal control over financial reporting.

We intend to begin the process of documenting, reviewing and improving our internal controls and procedures for compliance with Section 404 of the Sarbanes-Oxley Act, which will require annual management assessment of the effectiveness of our internal control over financial reporting. As an ''emerging growth company,'' we are not currently required to obtain an attestation report on the effectiveness of our internal control over financial reporting from our independent public accounting firm. Only in the event we are deemed to be a large accelerated filer or an accelerated filer, and no longer qualify as an emerging growth company, will we be required to comply with the independent registered public accounting firm attestation requirement on our internal control over financial reporting. If we are not able to adequately implement the requirements of the Sarbanes-Oxley Act in a timely manner, we may not be able to assess whether internal controls over financial reporting are effective, which may subject us to adverse regulatory consequences and could harm investor confidence, the market price of our ordinary shares and our ability to raise additional capital. We are in the very early stages of the costly and challenging process of compiling the documentation necessary to perform the evaluation needed to comply with the Sarbanes-Oxley Act.

These changes may not, however, be effective in maintaining the adequacy of our internal controls, and any failure to maintain that adequacy, or consequent inability to produce accurate financial statements on a timely basis, could increase our operating costs and harm our business. In addition, investors' perceptions that our internal controls are inadequate or that we are unable to produce accurate financial statements on a timely basis may harm the trading price of our ordinary shares following this Offering and make it more difficult for us to effectively market and sell our service to new and existing customers.

***We are an emerging growth company within the meaning of the Securities Act, and if we take advantage of certain exemptions from disclosure requirements available to emerging growth companies, this could make our securities less attractive to investors and may make it more difficult to compare our performance with other public companies.***

We are an "emerging growth company" within the meaning of the Securities Act, as modified by the JOBS Act, and we may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor internal controls attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. As a result, our stockholders may not have access to certain information they may deem important. We could be an emerging growth company for up to five years, although circumstances could cause us to lose that status earlier, including if the market value of our ordinary stock held by non-affiliates exceeds U.S.$700 million as of any June 30 before that time, in which case we would no longer be an emerging growth company as of the following December 31. We cannot predict whether investors will find our securities less attractive because we will rely on these exemptions. If some investors find our securities less attractive as a result of our reliance on these exemptions, the trading prices of our securities may be lower than they otherwise would be, there may be a less active trading market for our securities and the trading prices of our securities may be more volatile.

#### Risks Related to our Ordinary Shares

#### There has been no prior public market for our ordinary shares, and an active trading market may never develop or be sustained.
Prior to this Offering, there has been no public market for our ordinary shares. The initial public offering price for our ordinary shares was determined by negotiations between us and the representatives of the underwriters and may not be indicative of prices that will prevail in the trading market following the closing of this Offering. Although we intend to apply to have our ordinary shares listed on the Nasdaq, an active trading market for our ordinary shares may never develop or be sustained following this Offering. If an active market for our ordinary shares does not develop, it may be difficult for you to sell shares you purchase in this Offering without depressing the market price for our

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ordinary shares, or at all. An inactive trading market may also impair our ability to raise capital by selling shares of our ordinary shares and enter into strategic partnerships or acquire other complementary products, technologies or businesses by using shares of our ordinary shares as consideration. Furthermore, although we intend to apply to have our ordinary shares listed on the Nasdaq, even if listed, there can be no guarantee that we will continue to satisfy the continued listing standards of the Nasdaq. If we fail to satisfy the continued listing standards, we could be de-listed, which would negatively impact the value and liquidity of your investment.

***The trading price of our ordinary shares following this Offering may be volatile, and investors in our ordinary shares may not be able to resell shares of our ordinary shares at or above the price paid, or at all.***

The trading price of our ordinary shares following this Offering could be volatile and subject to wide fluctuations in response to various factors, many of which are beyond our control, including, but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• variations in our actual or anticipated annual or quarterly operating results or those of others in our industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• results of operations that otherwise fail to meet the expectations of securities analysts and investors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in earnings estimates or recommendations by securities analysts, or other changes in investor perceptions of the investment opportunity associated with our ordinary shares relative to other investment alternatives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• publications, reports or other media exposure of our products and services or those of others in our industry, or of our industry generally;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• announcements by us or others in our industry, or by our or their respective suppliers, distributors or other business partners, regarding, among other things, significant contracts, price reductions, capital commitments or other business developments, the entry into or termination of strategic transactions or relationships, securities offerings or other financing initiatives, and public reaction thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• additions or departures of key management personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• regulatory actions involving us or others in our industry, or actual or anticipated changes in applicable government regulations or enforcement thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the development and sustainability of an active trading market for our ordinary shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• sales, or anticipated sales, of large blocks of our ordinary shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• general economic and securities market conditions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• other factors discussed in this "Risk Factors" section and elsewhere in this prospectus.

Furthermore, the stock market in general has experienced extreme price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of particular companies. Broad market and industry factors may significantly affect the market price of our ordinary shares, regardless of our actual operating performance. These fluctuations may be even more pronounced in the trading market for our ordinary shares shortly following the closing of this Offering, including potential volume fluctuations related to the exercise of a significant number of our employee stock options and subsequent sale of shares prior to the end of the calendar year in which our management lock-up expires.

These and other factors may cause the market price and demand for our ordinary shares to fluctuate significantly, which may limit or prevent investors from readily selling their shares of ordinary shares and may otherwise negatively affect the liquidity of our ordinary shares. In addition, in the past, when the market price of a stock has been volatile, holders of that stock have sometimes instituted securities class action litigation against the company that issued the stock. If any of our shareholders were to bring a lawsuit against us, we could incur substantial costs defending the lawsuit. Such a lawsuit could also divert the time and attention of our management from our core business operations.

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***We have broad discretion to use the net proceeds that we receive from this Offering, and our investment of these proceeds may not yield a favorable return. We may invest such proceeds of this Offering in ways you disagree with.***

Our management has broad discretion as to how to spend and invest the proceeds that we receive from this Offering, and we may spend or invest these proceeds in ways with which our shareholders may disagree. Accordingly, investors will need to rely on our judgment with respect to the use of these proceeds. We intend to use the proceeds that we receive from this Offering for capital expenditures and other general corporate purposes, including the costs associated with being a public company and potentially for paying down indebtedness. We could spend the proceeds that we receive from this Offering in ways that our shareholders may not agree with or that do not yield a favorable return. You will not have the opportunity as part of your investment decision to assess whether the net proceeds that we receive from this Offering are being used appropriately. If we do not use the net proceeds that we receive in this Offering effectively, our results of operations, financial condition, business and prospects could be materially adversely affected, and the market price of our ordinary shares could decline.

***If you purchase our ordinary shares in this Offering, you will incur immediate and substantial dilution, and issuance of additional capital stock could lead to further dilution.***

The assumed initial public offering price of U.S.$ per share (the midpoint of the estimated offering price range set forth on the cover page of this prospectus) will be substantially higher than the pro forma net tangible book value per share of our outstanding ordinary shares of U.S.$ per share as of , 2023 after this Offering. Investors purchasing shares of our ordinary shares in this Offering will pay a price per share that substantially exceeds the book value of our tangible assets after subtracting our liabilities. As a result, investors purchasing ordinary shares in this Offering will incur immediate dilution of U.S.$ per share, based on the assumed initial public offering price of U.S.$ per share, which is the midpoint of the estimated offering price range set forth on the cover page of this prospectus.

This dilution is due to the substantially lower price paid by our shareholders who purchased shares prior to this Offering as compared to the price offered to the public in this Offering. As a result of the dilution to investors purchasing shares in this Offering, investors may receive less than the purchase price paid in this Offering, if anything, in the event of our liquidation. See "Dilution."

#### We do not expect to declare or pay any dividends on our ordinary shares for the foreseeable future.
We do not intend to pay cash dividends on our ordinary shares for the foreseeable future. Consequently, investors must rely on sales of their shares of our ordinary shares after price appreciation, which may never occur, as the only way to realize any future gains on their investment. Investors seeking dividends should not purchase shares of our ordinary shares. Any future determination to pay dividends will be at the discretion of our board of directors and subject to, among other things, our compliance with applicable law, and depending on, among other things, our business prospects, financial condition, results of operations, cash requirements and availability, debt repayment obligations, capital expenditure needs, the terms of any preferred equity securities we may issue in the future, covenants in the agreements governing our current and future indebtedness, other contractual restrictions, industry trends and any other factors or considerations our board of directors may regard as relevant. See "Dividend Policy."

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#### Special Note Regarding Forward-Looking Statements
This prospectus contains forward-looking statements that reflect our plans, beliefs, expectations and current views with respect to, among other things, future events and financial performance. The forward-looking statements appear in a number of places in this prospectus including, but not limited to, the sections titled "Prospectus Summary," "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Business." Forward-looking statements are based on our management's beliefs and assumptions and on information currently available to our management.

You can identify some of these forward-looking statements by words or phrases such as "aim," "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "is/are likely to," "may," "might," "plan," "potential," "predict," "shall," "should," "target," "will," the negative of these words or other similar expressions, or by discussions of strategy, plans or intentions. Known and unknown risks, uncertainties, and other factors, including those listed under "Risk Factors," may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. Such risks and uncertainties include, but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• general global economic conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• geopolitical risk, including the outcome and consequences of the 2022 presidential elections in Colombia and Brazil and impacts of the ongoing conflict between Russia and Ukraine;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our business and operating strategies and plans for the development of existing and new businesses, ability to implement such strategies and plans and expected time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our future business development, financial condition and results of operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the seasonality, volatility and cyclical nature of the industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• expected changes in our revenue, costs or expenditures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our dividend policy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our expectations regarding demand for and market acceptance of our products and services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our expectations regarding our relationships with customers, contract manufacturers, component suppliers, third-party service providers, strategic partners and other stakeholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to manage our capacity and production facilities effectively;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to develop new technologies successfully;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to maintain control over expansion and facility modifications;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to generate growth or profitable growth;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to maintain and protect our intellectual property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to hire and maintain qualified personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our effective tax rate or tax liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to acquire required equipment and supplies necessary to meet customer demand;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the increased competition from other companies and our ability to retain and increase our market share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our proposed used of proceeds from this Offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the potential business or economic disruptions caused by current and future pandemics, such as the COVID-19 pandemic;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• developments in, or changes to, laws, regulations, governmental policies, incentives and taxation affecting our operations relating to our industry; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• assumptions underlying or related to any of the foregoing.

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We caution you that the foregoing list does not contain all of the forward-looking statements made in this prospectus.

Forward-looking statements are based on current plans, estimates and projections, and therefore you should not place undue reliance on them. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update them publicly in light of new information or future events, except as required by law. The inclusion of this forward-looking information should not be regarded as a representation by us, the underwriters or any other person that the future plans, estimates or expectations contemplated by us will be achieved. Actual future results may be materially different from what we expect.

You should carefully consider the "Risk Factors" and subsequent public statements, or reports filed with or furnished to the SEC, before making any investment decision with respect to our securities. If any of these trends, risks or uncertainties actually occurs or continues, our business, financial condition or operating results could be materially adversely affected, the trading prices of our securities could decline and you could lose all or part of your investment. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement.

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#### Industry and Market Data
This prospectus contains statistical data, estimates and forecasts about our industry and the market in which we operate, including our general expectations and market position, market opportunity and market size. That information is based on our own internal estimates and research, as well as independent industry publications such as those published by Institute of Grocery Distribution (IGD), Nielsen and Atlantico and is subject to a number of assumptions and limitations. Although we are responsible for all of the disclosure contained in this prospectus and we believe the information from the industry publication and other third-party sources included in this prospectus is reliable, neither we nor the underwriters have independently verified market and industry data from third-party sources. While we believe our internal company research is reliable and the definitions of our market and industry are appropriate, neither this research nor these definitions have been verified by any independent source.

The industry in which we operate is subject to a high degree of uncertainty and risk due to a variety of factors, including those described in the section titled "Risk Factors" and elsewhere in this prospectus. These and other factors could cause results to differ materially from those expressed in the estimates made by the independent parties and by us.

The market opportunity discussed in the section titled "Business — Market Opportunity" is based on data from Retail Analysis from the Institute of Grocery Distribution (IGD) — Online Trends 2023: Six key trends that will shape the online grocery channel globally (March 2023).

As well we track traditional channels in the grocery market in Latin America based on data from Nielsen IQ Traditional Trade — Navigating the Traditional Trade in Latam (August 2022).

Also, we use Atlantico — Latin America Digital Transformation Report 2022 to track digitalization indicators in the region. We use Raddar Microeconomic Outlook 2022 to track Colombian household monthly expenditure.

Finally, we use Morgan Stanley — Here's Why E-commerce Growth Can Stay Stronger for Longer research to track e-commerce penetration in retail across regions.

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#### Use of Proceeds
We estimate that the net proceeds from the sale of ordinary shares that we are selling in this Offering will be approximately U.S.$ million (or U.S.$ million if the underwriter exercises in full its option to purchase additional shares), based on an assumed initial public offering price of U.S.$ per share, which is the midpoint of the price range set forth on the cover page of this prospectus, after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us.

Each U.S.$1.00 increase or decrease in the assumed initial public offering price would increase or decrease, respectively, the net proceeds to us by approximately U.S.$ million, assuming the number of shares offered by us, as set forth on the cover page of this prospectus, remains the same and after deducting the estimated underwriting discounts and commissions. Similarly, each increase (decrease) of shares in the number of ordinary shares offered by us would increase (decrease) the net proceeds to us from this Offering by approximately U.S.$, assuming the assumed initial public offering price remains the same and after deducting underwriting discounts and commissions and estimated offering expenses payable by us. We do not expect that a change in the initial price to the public or the number of shares by these amounts would have a material effect on uses of the proceeds from this Offering, although it may accelerate the time at which we will need to seek additional capital.

The principal purposes of selling our ordinary shares in this Offering are to obtain additional capital, to create a public market for our ordinary shares and to facilitate our future access to the public equity markets. We intend to use the net proceeds for our operating expenses and capital expenditures and other general corporate purposes, including the costs associated with being a public company.

We have not yet determined our anticipated expenditures and therefore cannot estimate the amounts to be used for each of the purposes discussed above. The amounts and timing of any expenditures will vary depending on the amount of cash generated by our operations, competitive and technological developments and the rate of growth, if any, of our business. Accordingly, our management will have significant flexibility in applying the net proceeds from this Offering, and investors will be relying on the judgment of our management regarding the application of these net proceeds. We intend to invest in short-term, interest-bearing obligations, and investment-grade instruments pending application of the net proceeds of this Offering. The goal with respect to the investment of these net proceeds will be capital preservation and liquidity so that these funds are readily available to fund our operations.

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#### EXCHANGE RATES AND FOREIGN EXCHANGE CONTROLS

#### Exchange Rates
This prospectus converts certain peso amounts into U.S.$ at specified rates solely for the convenience of the reader. Unless otherwise indicated, such Colombian *peso* amounts have been converted at the rate of COP $4,810.20 per U.S.$1.00, which corresponds to the representative market rate for December 31, 2022, as reported by the Superintendence of Finance ("SFC"). The representative market rate is computed and certified by the SFC on a daily basis and represents the weighted average of the buy/sell foreign exchange rates negotiated on the previous day by certain financial institutions authorized to engage in foreign exchange transactions (including us), for the purchase and sale of U.S. dollars. The SFC also calculates and certifies the average representative market rate for each month for purposes of preparing financial statements, and converting amounts in foreign currency to Colombian *pesos*. You should not construe these convenience conversions as a representation that the peso amounts correspond to, or have been or could be converted into, U.S. dollars at the representative market rate or any other rate.

#### Foreign Exchange Controls
*Colombia*

In 1990, the Colombian government initiated a policy of gradual currency liberalization. Foreign currency holdings abroad were permitted and, in a series of decrees, control of the exchange rate was shifted from the Colombian Central Bank to the spot foreign exchange market conducted by certain authorized financial institutions.

The general legal principles of Colombia's foreign exchange and international investments regulations, or foreign exchange ("FX") Regulations, are established in Law 9 of 1991, Decree 1068 of 2015, or Decree 1068, External Resolution 1 of 2018 from the Board of Directors of the Colombian Central Bank, or Resolution 1, and *Circular Externa* DCIP-83, or *Circular* DCIP-83, from the Colombian Central Bank. All of these, as amended from time to time, are considered the main legal framework governing Colombia's FX Regulations.

Resolution 1 establishes two types of markets for foreign currency exchange: (i) the free market and (ii) the controlled market, or the FX market. The free market consists of all foreign currencies originated in sales of services, donations, remittances and all other inflows or outflows that do not have to be channeled through the FX Market (as defined below), or the Free Market. The FX Market consists of: (a) all foreign currencies originated in operations considered to be controlled operations and therefore which may only be transacted through foreign exchange intermediaries, or through registered compensation accounts, or (b) foreign currencies originated in operations, which although not required to be transacted through the FX Market, are voluntarily channeled through such market. This market is made up of all the following foreign exchange operations which must be channeled through the FX market (i) import and export of goods, (ii) foreign investments in Colombia, (iii) foreign indebtedness agreements entered into by Colombian residents, as well as the financial costs associated with such indebtedness, (iv) direct investments abroad by Colombian residents, (v) derivatives transactions, (vi) guaranties granted in foreign currency, and (vii) financial investments in foreign securities or assets abroad and their yield, unless such investments are made in foreign currency originated in operations of the Free Market.

Under Colombian FX Regulations, foreign exchange intermediaries, or "FX Intermediaries," are authorized to enter into foreign exchange transactions, or FX Transactions, to convert Colombian *pesos* into foreign currencies or foreign currencies into Colombian *pesos*. According to Article 7 of Resolution 1, the following institutions are considered FX Intermediaries: commercial banks, financial corporations, financing companies, *Financiera de Desarrollo Nacional*, or FDN, *Banco de Comercio Exterior* — BANCOLDEX, financial cooperatives, local stock broker firms, foreign exchange and special financial services intermediation companies SEDPEs (*Sociedades Especializadas en Depósitos y Pagos Electrónicos)*, FINDETER (*Financiera de Desarrollo Territorial*), FINAGRO (*Fondo para el Financiamiento del Sector Agropecuario*), ICETEX (*Instituto Colombiano de Crédito Educativo y Estudios Técnicos en el Exterior*), ENTerritorio (*Empresa Nacional Promotora del Desarrollo Territorial*) and FNA. All these institutions are considered authorized intermediaries and, therefore, are allowed to buy and sell foreign currency originated in foreign exchange operations, according to the parameters and limits set forth by Article 8 of Resolution 1, exchange intermediation companies are also considered authorized intermediaries; however, exchange intermediation companies have a limited regime and are not authorized to buy and sell foreign currency for controlled operations.

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On the other hand, compensation accounts are accounts opened abroad by Colombian residents (individuals and legal entities), which are registered with the Colombian Central Bank in order to channel foreign currency originated in either controlled operations in the FX Market or the Free Market. Colombian law allows the Colombian Central Bank to intervene in the foreign exchange market if the value of the Colombian *peso* is subject to significant volatility. The Colombian Government and the Colombian Central Bank may also limit the remittance of dividends and/or investments of foreign currency received by Colombian residents whenever the international reserves fall below an amount equal to three months of imports. See "Risk Factors — Risks relating to Colombia *— Changes in economic and political conditions in Colombia and Brazil may adversely affect our financial condition and results of operation*."

*Brazil*

The Brazilian foreign exchange system allows the purchase and sale of foreign currency and the international transfer of reais by any person or legal entity, regardless of the amount, subject to certain regulatory procedures.

Since 1999, the Brazilian Central Bank has allowed the U.S. dollar-real exchange rate to float freely. Since then, the U.S. dollar-real exchange rate has fluctuated considerably.

The Brazilian Central Bank has intervened occasionally to control unstable movements in foreign exchange rates. We cannot predict whether the Brazilian Central Bank or the Brazilian government will continue to permit the real to float freely or will intervene in the exchange rate market through the return of a currency band system or otherwise. See "Risk Factors — Risks relating to Colombia *— Changes in economic and political conditions in Colombia and Brazil may adversely affect our financial condition and results of operation*."

The real may depreciate or appreciate against the U.S. dollar substantially. Furthermore, Brazilian law provides that, whenever there is a serious imbalance in Brazil's balance of payments or there are serious reasons to foresee a serious imbalance, temporary restrictions may be imposed on remittances of foreign capital abroad. We cannot assure you that such measures will not be taken by the Brazilian government in the future.

#### Fluctuation of the Colombian peso against the U.S. dollar and measures adopted by the Colombian government
The Colombian Central Bank and the Ministry of Finance have, in recent years, adopted a set of measures intended to tighten monetary policy and control the fluctuation of the peso against the U.S. dollar. Pursuant to Resolution 5 of 2008, as amended by subsequent resolutions of the Colombian Central Bank, such measures include, among others: (i) reserve requirements on private demand deposits, savings deposits and other deposits on liabilities currently set at 11.0% of any such deposits, (ii) reserves of 4.5% for time deposits with maturities of less than 18 months and 0.0% for time deposits with maturities of more than 18 months, and (iii) deposit requirements with respect to indebtedness in a foreign currency, currently set at 0.0%.

On November 5, 2010, the Colombian government issued Decree 4145, pursuant to which, among other things, interest payments on foreign indebtedness by Colombian companies became subject to a 33.0% withholding tax rate. On December 29, 2010, the Colombian government enacted Law No. 1430 of 2010, which among other things reduced the withholding tax rate on interest payments on foreign indebtedness of Colombian companies having a term of one year or more, to 14.0%. Pursuant to Law 1819 issued on December 28, 2016, interest payments on foreign indebtedness by Colombian companies became subject to a withholding tax at: (i) the general tax rate applying to non-Colombian tax residents (34% during 2017, 33% during 2018 and 2019, 32% during 2020, 31% during 2021 and 35% during 2022 and onwards), when such payments are made to an entity located in a preferential tax regimen, non-cooperative jurisdiction or low-tax jurisdiction; or (ii) 5%, when those interest payments are derived from credits with a 8-year-term and destined to infrastructure projects of Law 1508 of 2012; or (iii) 15% in other cases, unless otherwise provided in a Tax Treaty executed by Colombia with a Third country. Notwithstanding, there are certain exceptions to this rule, including, among others, (i) foreign indebtedness qualified as external public debt authorized by the Ministry of Finance and Public Credit (*Ministerio de Hacienda y Crédito Público*), (ii) loans destined to the financing of exportations and (iii) loans obtained by Colombian banks and financial corporations.

Through Resolution 1, the Colombian Central Bank regulated the intervention in the foreign exchange market, by implementing four different mechanisms: (i) purchase or sale of currencies at market rates, (ii) selling put and call options at market rates through daily competitive auctions, (iii) selling foreign currency in the spot market entering into foreign exchange swap contracts, at rates determined by the Colombian Central Bank through competitive auctions or front-desk requests, and (iv) selling foreign currency through non-delivery forward agreements at market rates, through an auction mechanism.

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The Colombian government has considerable power to determine governmental policies and actions that relate to the Colombian economy and, consequently, to affect the operations and financial performance of businesses. The Colombian government and the Colombian Central Bank may seek to implement additional measures aimed at controlling further fluctuation of the peso and fostering domestic price stability. A prediction cannot be made on the policies that may be adopted by the Colombian government and whether those policies may negatively affect the Colombian economy or our business or financial performance. Furthermore, we cannot assure you that the peso will not depreciate or appreciate relative to other currencies in the future.

#### Fluctuation of the Brazilian real against the U.S. dollar and measures adopted by the Brazilian government
The real has suffered frequent depreciations and appreciations in relation to the U.S. dollar and other foreign currencies during the past decade. The Brazilian government has in the past utilized different exchange rate regimes, including sudden devaluations, periodic mini devaluations (during which the frequency of adjustments has ranged from daily to monthly), exchange controls, dual exchange rate markets and a floating exchange rate system. Since 1999, Brazil has adopted a floating exchange rate system with interventions by the Brazilian Central Bank in buying or selling foreign currency. From time to time, there have been significant fluctuations in the exchange rate between the Brazilian real and the U.S. dollar and other currencies. The devaluations in more recent time periods resulted in significant fluctuations in the exchange rates of the real against the U.S. dollar and other currencies.

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#### Dividend Policy
We currently intend to retain all available funds and any future earnings to fund the development and growth of our business. Therefore, we do not anticipate declaring or paying any cash dividends to our shareholders in the foreseeable future. Any future determination as to the declaration and payment of dividends, if any, will be at the discretion of our board of directors, subject to applicable laws, and will depend on a number of factors, including our business prospects, results of operations, financial condition, cash requirements and availability, debt repayment obligations, capital expenditure needs, covenants in the agreements governing our current and future indebtedness, other contractual restrictions, industry trends and any other factors or considerations our board of directors may regard as relevant.

Under Cayman Islands law, dividends may be declared and paid only out of funds legally available therefor, namely out of either profit or distributable reserves, including our share premium account, and provided further that a dividend may not be paid if this would result in us being unable to pay our debts as they fall due in the ordinary course of business.

For additional information, see "Risk Factors — We do not expect to declare or pay any dividends on our ordinary shares for the foreseeable future" and "Description of Share Capital — Dividends."

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#### Capitalization
The following table sets forth our capitalization as of December 31, 2022:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• on an actual basis; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• on an as adjusted basis to reflect the sale of ordinary shares by us pursuant to this Offering.

This table should be read in conjunction with "Management's Discussion and Analysis of Financial Condition and Results of Operations," our consolidated financial statements and the related notes included elsewhere in this prospectus, and with other financial information contained in this prospectus.

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| | | |
|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** |
|  | **(COP$ in thousands)** | **(COP$ in thousands)** |
|  | **Actual** | **As Adjusted** |
|  Cash and cash equivalents | 4418060 |  |
|  Long term debt, including current portion | 109518683 |  |
|  Lease liabilities, including current portion | 9867647 |  |
| &nbsp;&nbsp;&nbsp; Other financial liabilities | 32169787 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total debt | 151556117 |  |
|  Shareholder's equity |  |  |
| &nbsp;&nbsp;&nbsp; Issued capital | 392164623  |  |
| &nbsp;&nbsp;&nbsp; Cumulative deficit | (616955942) |  |
| &nbsp;&nbsp;&nbsp; Other comprehensive income | 1059120 |  |
| &nbsp;&nbsp;&nbsp; Other capital reserves | 86766974  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total equity | **(136965225)** |  |
|  Total capitalization<sup>(1)</sup> | 14590892 |  |

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____________

(1) Consists of the sum of equity plus total debt.

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#### Dilution
If you invest in our ordinary shares in this Offering, your ownership interest will be diluted to the extent of the difference between the initial public offering price per share and the pro forma as adjusted net tangible book value per share of our ordinary shares immediately after this Offering. Dilution results from the fact that the initial public offering price per share is substantially in excess of the book value per share attributable to the existing shareholders for our presently outstanding ordinary shares.

Our pro forma net tangible book value as of , 2023 was U.S.$ or U.S.$ per share of ordinary shares. Pro forma net tangible book value per share is determined by dividing our tangible net worth, total assets less total liabilities, by the aggregate number of ordinary shares outstanding. After giving effect to the sale of the ordinary shares in this Offering, at an assumed initial public offering price of U.S.$ per share, the midpoint of the range set forth on the cover page of this prospectus, and the receipt and application of the net proceeds, our pro forma net tangible book value at , 2023 would have been U.S.$ or U.S.$ per share. This represents an immediate increase in pro forma net tangible book value to existing shareholder of U.S.$ per share and an immediate dilution to new investors of U.S.$ per share. The following table illustrates this per share dilution:

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| | |
|:---|:---|
|  Assumed initial public offering price | $|
| &nbsp;&nbsp;&nbsp; Pro forma net tangible book value per share as of , 2023 | $|
| &nbsp;&nbsp;&nbsp; Increase in pro forma net tangible book value per share attributable to new investors | $|
| &nbsp;&nbsp;&nbsp; Pro forma net tangible book value per share after the Offering |  |
| &nbsp;&nbsp;&nbsp; Dilution per share to new investors | $|

---

Dilution is determined by subtracting pro forma net tangible book value per share after the Offering from the initial public offering price per share.

The following table sets forth, on a pro forma basis, as of , 2023, the number of ordinary shares purchased from us, the total consideration paid, or to be paid, and the average price per share paid, or to be paid, by the existing shareholder and by the new investors, at an assumed initial public offering price of U.S.$ per share, the midpoint of the range set forth on the cover page of this prospectus, before deducting estimated our underwriting discounts and commissions and offering expenses payable:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Shares Purchased** | **Shares Purchased** | **Total Consideration** | **Average<br>Price<br>Per Share** |
|  | **Number** | **Percent** | **Percent** | **Average<br>Price<br>Per Share** |
|  Existing shareholder |  | % | $% | $|
|  New investors |  | % | $| $|
|  Total |  | 100% | $100% | $|

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The foregoing tables assume no exercise of the underwriters' over-allotment option or of outstanding share options after , 2023. At , 2023, ordinary shares were subject to outstanding options, at a weighted average exercise price of U.S.$. To the extent these options are exercised there will be further dilution to new investors.

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#### Management's Discussion and Analysis Of Financial Condition and Results of Operations
*The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the section titled "Summary Consolidated Financial Data" and the consolidated financial statements included elsewhere in this prospectus. This discussion contains forward*-looking *statements that involve risks and uncertainties. Our actual results could differ materially from those discussed below. Factors that could cause or contribute to such differences include, but are not limited to, those identified below and those discussed in the section titled "Risk Factors" included elsewhere in this prospectus.*

#### Overview
We are Latin America's first vertically-integrated digital grocery retailer with operations in both Colombia and Brazil. We allow our customers to save time and money on groceries by leveraging proprietary technology and operational excellence to deliver groceries at great prices, and in a scalable way. We define a vertically-integrated digital grocery retailer as a full-stack ecosystem which has end-to-end integrated operations, allowing for full control of the value chain. We deliver high-quality, low-priced products by negotiating directly with suppliers. We offer our customers an unparalleled shopping experience by using technology to optimize procurement and fulfillment in our warehouses, and by delivering directly to their doors. Our unique market positioning as a full-stack, high basket size, 100% scheduled delivery option has proven business results, as we have been able to successfully lower distribution and logistics costs, unlock higher margins, and offer best-in-class user experience, cheaper than other grocery retailers.

Through our mobile apps (iOS and Android) customers can satisfy grocery stock up and fill-in shopping missions while saving time and money. Customers no longer have to go to a physical store and are able to benefit from our full-stack ecosystem to pay less for the household products that they use and love. We offer everything from fresh produce to frozen products, and from house cleaning and personal hygiene to meat and dairy. Since we also serve countries where cash remains a major form of payment, we offer a wide variety of payment options including cash, online payment, credit and debit card payment upon receipt, vouchers and digital wallets, amongst others.

Technology has always been and continues to be at the heart of Merqueo. We design, develop, and operate most of our software and technology in-house, including (1) user facing mobile apps (iOS and Android), (2) fulfillment center technology (including a picking app, fulfillment center app, and inter-warehouse inventory movement app), (3) last-mile delivery app, and (4) customer service and live operations platforms. See "Full-Stack Grocery Delivery Services" for a detailed narrative of our technology applied to our business.

Our user-facing platform is a fully-automated, topically-arranged and user-friendly mobile app. It is a highly scalable platform that provides users with a convenient, safe, and trusted shopping environment. This platform enables us to list merchandise and transact with our customers while allowing customers to shop and schedule deliveries digitally. Our grocery platform has an ample assortment of products spanning the full spectrum of grocery needs.

We negotiate and purchase inventory directly from brands, manufacturers, and local farmers. In some specific cases we purchase inventory from distributors. We have invested significant time developing deep relationships and favorable commercial agreements with more than one hundred suppliers. Once we send the purchase orders, our suppliers deliver the inventory to one of our leased warehouses, which we classify into one of two different types: medium warehouses that measure 2,000 to 3,000 meters and large warehouses that measure 4,000 to 5,000 meters. After the incoming product is received and scanned, it is uploaded in real time to Merqueo's warehouse management system ("WMS"), which immediately updates availability of stock for our users to purchase in our app. In this way, we only display the products that are available to our customers at the time of the purchase, achieving fill rate levels up to 99.7% in Colombia and 98% in Brazil during 2022.

After receiving the products, these are transferred to our storage shelves, where they are organized and sorted according to categories and turnover. In order to make individual products available for picking, these are transferred from the storage to the picking area using in-house technology that prioritizes products according to forecasting and

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real time demand. Through new developments and enhancement of our picking app, optimization of picking areas (reducing long displacements for pickers), and continuous improvements in planning, we have been able to improve our picking in Colombia during the fourth quarter of 2022, from a rate of 50 items per hour per picker (per hour dedicated exclusively to picking) to 245 items per hour per picker on average. The items are then batched and ready to be delivered by our third-party service providers directly to our customers' doors.

Our scheduled delivery option is tailored for families and larger households and aims to replace the weekly supermarket shop with a convenient delivery of groceries at a time the customer elects. Scheduled delivery orders can be made as many as four days in advance and as few as three hours ahead of the customer's desired delivery time. They are available to customers within an approximate 12-kilometer radius of a warehouse, at approximately U.S.$1.1 per order in both Colombia and Brazil. Scheduled deliveries accounted for 85% and 87% of our total orders in Colombia and Brazil during the year ended December 31, 2021, respectively. By December 31, 2022, 100% of orders were scheduled deliveries.

Not only do we sell products produced and marketed by other brands but we also create our own brands, which we call "private label" products. In the third quarter of 2019, in Colombia we began to offer customers private label products, and we currently have one of the most comprehensive private label selections in the Latin American e-grocery market. On December 31, 2022, we had 29 private label brands offering a total of 234 active products. Many of these private label products are ranked in the top tier of sellers within their respective categories in our platform. We control the end-to-end process for creating, designing, registering, procuring, and verifying supplier quality of all of our brands, and will continue building private label brands that are profitable, and that customers love.

#### Significant Factors Affecting our Results of Operations

#### Impact of the COVID-19 Pandemic
The COVID-19 pandemic caused general business disruption worldwide. To contain the spread of the virus, governments around the world, including in Colombia and Brazil, enacted various policies limiting social interaction and commercial activity for the general population, including but not limited to, lockdown periods, reduced business hours, cancelation of large events and festivities and travel bans for passengers from selected countries, among others. These types of measures were in place for most of 2020 and roughly the first quarter of 2021.

Unlike other businesses, the COVID-19 pandemic represented a growth opportunity for us, as our business allowed users to make supermarket purchases online from the comfort of their homes, limiting their potential exposure to COVID-19. Many new customers used our platform for the first time as a result of lockdown and mobility restrictions.

Since approximately March to April 2021, when most of the lockdown restrictions were ultimately lifted in Colombia, we are no longer experiencing the same boost to our growth as we were during peak pandemic. Although the COVID-19 pandemic has largely subsided, we do not yet know the full extent of potential impacts on our business or operations or on the global economy as a whole, particularly if there are new COVID-19 outbreaks and variant strains continuing to emerge worldwide despite the greater availability of vaccines. Given the uncertainty, we cannot reasonably estimate the ongoing impact of the COVID-19 pandemic on our future results of operations, cash flows, or financial condition. For additional details, see the section titled "Risk Factors — The outbreak of COVID-19 may have in the future a negative impact on the global economy and on our business, operations and results."

#### Macroeconomic Environment
As the majority of our operations and services are performed in Colombia and Brazil, we are generally affected by macroeconomic conditions, economic growth and political stability in those countries and, to a lesser extent, in other countries of Latin America. Such factors affect us more broadly through the resulting impact on the demand for online grocery shopping and delivery services, financing costs, the general availability of financing and exchange rate fluctuations between the Colombian *peso,* the Brazilian *real* and other currencies, mainly the U.S. dollar.

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The following table sets forth certain data relating to gross domestic product ("GDP"), inflation and interest rates in Colombia and Brazil, respectively, and the U.S. dollar exchange rate as of the dates and for the periods indicated. Both countries had negative growth in 2020 due to the COVID contingency. GDP growth rate for Colombia and Brazil during 2021 were both above the 0.56% for Colombia and the (0.78)% for Brazil 5-year average GDP growth rate. However, in 2022, higher interest rates, supply chain constraints, among other reasons, resulted in a slower GDP growth rate.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Colombia** | **Colombia** | **Brazil** | **Brazil** |
|  | **As of and for the years ended <br>December 31,** | **As of and for the years ended <br>December 31,** | **As of and for the years ended <br>December 31,** | **As of and for the years ended <br>December 31,** |
|  | **2021** | **2022** | **2021** | **2022** |
|  Real growth (contraction) in GDP | 11.0% | 7.5% | 4.6% | 3.2% |
|  Inflation | 5.62% | 13.12% | 10.06% | 5.79% |
|  Long-term interest rates | 8.5% | 13.2% | 5.3% | 7.2% |
|  Period-end exchange rate – local currency per U.S.$1.00 | 3981.16 | 4810.20 | 5.58 | 5.22 |
|  Average exchange rate – local currency per U.S.$1.00 | 3743.09 | 4255.44 | 5.40 | 5.17 |
|  Appreciation (depreciation) of local currency against the U.S.$ in the period | (16.0)% | (20.8)% | (7.4)% | 6.5% |

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*Size of Our User Base*

Our revenue is largely driven, among other factors, by the number of users that we are able to attract and retain. The higher the number of active users of our grocery delivery, the larger the economies of scale in our network of warehouses.

*Consumer Spending*

Our operating results are sensitive to changes in overall economic conditions that impact consumer spending, including discretionary spending, in the areas where we operate. Consumers may reduce spending or change their purchasing habits due to certain economic conditions, such as decreasing employment levels, slowing business activity, increasing interest rates, increasing energy and fuel costs, increasing healthcare costs and increasing tax rates. A general reduction in the level of consumer spending or our inability to respond to shifting consumer preferences regarding products, store location and other factors in the markets where we operate could adversely affect our growth and profitability. However, our company may be less sensitive than other industries, as consumers may be less likely to cut discretionary spending on groceries than on other purchases during times of economic uncertainty.

*Inflation and Interest Rates*

According to the DANE, overall inflation in Colombia was 13.12% in 2022 and 5.62% in 2021. Food inflation was 27.81% in 2022 and 17.23% in 2021. According to the Brazilian Geography and Statistics Institute (IBGE), overall inflation in Brazil was 5.79% in 2022 and 10.06% in 2021. Food inflation was 11.9% in 2022 and 7.94% in 2021.

Inflation has an impact on our financial liquidity and financial capital resources primarily by impacting our purchasing power. Cost of goods sold, transportation, warehouse rentals, energy costs and labor cost, our primary operating costs, increase generally with inflation and, where possible, are recovered through cost-saving activities and retail price adjustments. The contracts of our warehouses for example are indexed to inflation and rental prices are adjusted every year.

However, given that the groceries market is highly competitive, Merqueo is constantly looking for cost and expenses optimizations. In the long run, higher inflation means not only higher costs but also higher levels of revenue as we sell groceries, a natural hedging between inflation and revenues.

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We are exposed to interest rate risk primarily on our outstanding loans subject to floating interest rates, more specifically in the cost of the financial debt indexed to the IBR, DTF and SOFR rates. The following table presents the increases in the relevant interest rates over the last two quarters:

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| | | |
|:---|:---|:---|
|  | **End of month** | **End of month** |
|  | **March 2022** | **December 2022** |
|  IBR | 3.88% | 11.14% |
|  DTF | 4.97% | 13.42% |
|  SOFR | 0.29% | 4.3% |

---

Under current market conditions, if IBR and DTF were to have an additional increase of 100 basis points, our effective interest rate paid on the respective loans would rise by 123 basis points, which translate in additional interest of approximately COP $10,876 thousand to be paid until the maturity of the loans.

Under current market conditions, if the SOFR were to have an additional increase of 100 basis points, our effective interest rate paid on the respective loans would rise by 100.5 basis points, which translates to an additional interest expenditure of approximately U.S.$989,000 for the year 2023 to be paid until the maturity of the loans.

Additionally, inflation and interest rate hikes usually have a negative impact on the purchasing power of our customers considering the cost of goods and services increases while the cost of borrowing also increases. This situation may cause consumers to be more conscious of their expenses and therefore less inclined to spend. We do not expect our expansion and capital expenditures to be materially impacted by these effects.

However, this impact may be smaller in the grocery retail industry compared to other industries, given that food is a non-discretionary type of household expense. We expect consumers to change the way they purchase, by (1) adjusting the quantities of product they buy, (2) shifting from higher-end brand to cheaper alternatives, (3) choosing not to use delivery services and (4) removing non-essential items from their grocery list. Our results may be affected by the willingness of our customers to spend, the frequency with which they make purchases on our platform, the amount they spend in purchases and their capacity to buy more costly, high-margin products. These changes in consumer behavior may materially and adversely affect us.

Nonetheless, a more spending-conscious customer means an opportunity to position our private labels as a solution for their needs under less favorable economic conditions. Any shortage caused by limitation in installed capacity, by supply chain disruptions on our private label suppliers or the levels of service they can provide, will hamper our capacity to capitalize on that opportunity.

We have developed a pricing model that allows us to know the prices of benchmark grocery retail players on a daily basis. We establish our base prices based on: (i) the benchmark average and minimum prices and (ii) a set of rules for the different product categories that we have defined: from essential, high turnover basic basket products, which drive customer price perception, to lower turnover, higher margin products. We strive to be perceived as an affordable alternative. We do so by aiming to be cheaper than the benchmark in perception-driving products. In this kind of environment, we expect it will be very important for us that customers continue to perceive us as one of the most competitive alternatives in the market. Thus, we need to closely monitor customer behavior towards market and test and analyze our different set of rules for the different product categories we have defined to maximize spending in our app.

Although we are a light-asset company, we need to incur capital expenditures on some operational assets of the day-to-day business in our warehouses. Additionally, we have capital expenditures related to software development, which is necessary to providing our service. Inflation may increase the cost of warehouse set-up by driving up wages and the cost of suppliers in 2023.

Additionally, we have capital expenditures related to software development, which is necessary to providing our service. We have already reduced expenditure in software development in recent months, and we have refined the development backlog accordingly. However, we may have an increase related to the expected wage increases in 2023.

[**Table of Contents**](#TOC001)

Our expansion plan and warehouse rollout are driven by an increase in demand and the necessity of additional installed capacity to fulfill more orders. If our demand grows in a city, to the extent that we need new warehouses and we fail to timely anticipate this need, we may limit our revenues. Inflation may impact the warehouse set-up cost, including the cost of supplies and equipment required to enable a warehouse. However, we consider it riskier for our flywheel and profitability not to have a sufficient warehouse capacity in place. Changes to our expansion plan will be driven by the speed at which our demand and revenue grow.

*Seasonality and Weather Patterns*

Our retail business generally fluctuates as a result of the holiday season and other local festivities, when a part of our user base will travel or be out of the house and will be less likely to do grocery shopping. Results may also be impacted by weather. For example, our sales are generally positively impacted by rainy weather, when users will prefer staying at home than going to the supermarket or eating out.

*Closure of Operations in Mexico*

In June 2022, our board of directors decided to close our operations in Mexico indefinitely, effective on June 8, 2022, in order to focus the resources and efforts on strengthening our position in Colombia and the expansion in Brazil. We have classified these operations as discontinued and the results of these operations are included as discontinued operations accordingly. For the reasons described above, our net loss from discontinued operations for the year ended December 31, 2022 was COP $24,115,983, a decrease of COP $14,149,476, or 37% from COP $38,265,459 for year ended December 31, 2021. See Note 33 to our consolidated financial statements for 2022 and 2021, included elsewhere in this prospectus, for additional details.

#### Non-IFRS Financial Measures and Key Business Metrics
Certain parts of this prospectus contain the following non-IFRS financial measures: EBITDA, Adjusted Gross Profit and Total Distribution and Logistics Cost. A non-IFRS financial measure is generally defined as a numerical measure of historical or future financial performance, financial position, or cash flow that excludes or includes amounts that would not be adjusted in the most comparable IFRS measure.

EBITDA, Adjusted Gross Profit and Total Distribution and Logistics Cost are used by our management to monitor the underlying performance of the business and its operations. These measures are used by different companies for differing purposes and are often calculated in ways that reflect the circumstances of those companies. You should exercise caution in comparing these measures as reported by us to the same or similar measures as reported by other companies. EBITDA, Adjusted Gross Profit and Total Distribution and Logistics Cost may not be comparable to similarly titled metrics of other companies. These measures are unaudited and have not been prepared in accordance with IFRS or any other generally accepted accounting principles.

EBITDA, Adjusted Gross Profit and Total Distribution and Logistics Cost are not measurements of performance under IFRS or any other generally accepted accounting principles, and you should not consider them as alternatives to operating profit/loss or other financial measures determined in accordance with IFRS or other generally accepted accounting principles. These measures have limitations as analytical tools, and you should not consider them in isolation. We have chosen to present these non-IFRS measures as they are common for other companies in our industry.

[**Table of Contents**](#TOC001)

In addition to the measures presented in our consolidated financial statements, we use the following key business metrics to help us evaluate our business, identify trends affecting our business, formulate business plans, and make strategic decisions:

---

| | | | |
|:---|:---|:---|:---|
|  **Consolidated Basis** | **For the year ended December 31,** | **For the year ended December 31,** | **For the year ended December 31,** |
|  **Consolidated Basis** | **2021** | **2022** | **2022** |
|  | **(in COP$ Thousand)** | **(in COP$ Thousand)** | **(in U.S.$)<sup>(1)</sup>** |
|  Total Distribution and Logistics Cost | $65231546 | $62634778 | $13021242 |
|  Net Revenues | $205600950 | $133906761 | $27838086 |
|  Distribution and Logistics Cost as a percentage of net revenues | 32% | 47% | 47% |
|  Total Distribution and Logistics Cost excluding administrative employees supporting selling activities | $53776757 | $49206050 | $10229523 |
|  Net Revenues | $205600950 | $133906761 | $27838086 |
|  Distribution and Logistics Cost excluding administrative employees supporting selling activities as a percentage of net revenue<sup>(2)</sup> | 26% | 37% | 37% |

---

____________

(1) For convenience purposes only, amounts in U.S.$ have been translated to U.S. dollars using an exchange rate of COP$4,810.20 to U.S.$1.00, which corresponds to the *tasa representativa del mercado* ("representative market rate") as of December 31, 2022, as reported by Colombia's *Banco de la República*. These translations should not be considered representations that any such amounts have been, could have been or could be converted at that or any other exchange rate. See "Risk Factors — Inflation and certain government measures to curb inflation may have adverse effects on the economies of the countries where we operate, our business and our operations."

(2) In Colombia, the Distribution and Logistics Cost excluding administrative employees supporting selling activities as a percentage of net revenue was (i) in 2021, 26%, and (ii) in 2022, 31%. In Brazil, the Distribution and Logistics Cost excluding administrative employees supporting selling activities as a percentage of net revenue was (i) in 2021, 73%, and (ii) in 2022, 64%.

---

| | | | |
|:---|:---|:---|:---|
|  | **For the year ended December 31,** | **For the year ended December 31,** | **For the year ended December 31,** |
|  **Consolidated Basis** | **2021** | **2022** | **2022** |
|  | **(in COP$ Thousands)** | **(in COP$ Thousands)** | **(in U.S.$)<sup>(1)</sup>** |
|  Net revenues | $205600950 | $133906761 | $27838086 |
|  Gross Profit | $11710818 | $7160597 | $1488628 |
|  Depreciation of right-of-use assets | $4569108 | $4532360 | $942239 |
|  Adjusted Gross Profit | $16279926 | $11692957 | $2430867 |
|  Gross Profit as a percentage of net revenue<sup>(2)</sup> | 6% | 5% | 5% |
|  Adjusted Gross Profit as a percentage of net revenue<sup>(3)</sup> | 8% | 9% | 9% |

---

____________

(1) For convenience purposes only, amounts in U.S.$ have been translated to U.S. dollars using an exchange rate of COP$4,810.20 to U.S.$1.00, which corresponds to the *tasa representativa del mercado* ("representative market rate") as of December 31, 2022, as reported by Colombia's *Banco de la República*. These translations should not be considered representations that any such amounts have been, could have been or could be converted at that or any other exchange rate. See "Risk Factors — Inflation and certain government measures to curb inflation may have adverse effects on the economies of the countries where we operate, our business and our operations."

(2) In Colombia, the Gross Profit as a percentage of net revenue was (i) in 2021, 8%, and (ii) in 2022, 8%. In Brazil, the Gross Profit as a percentage of net revenue was (i) in 2021, (315)%, and (ii) in 2022, (10)%.

(3) In Colombia, the Adjusted Gross Profit as a percentage of net revenue was (i) in 2021, 10%, and (ii) in 2022, 12%. In Brazil, the Adjusted Gross Profit as a percentage of net revenue was (i) in 2021, (288)%, and (ii) in 2022, (5)%.

---

| | | |
|:---|:---|:---|
|  | **For the year ended <br>December 31,** | **For the year ended <br>December 31,** |
|  **Data for Colombia** | **2021** | **2022** |
|  Average Monthly Active Users<sup>(1)</sup> | 90568 | 51139 |
|  Average Monthly Active Rate<sup>(2)</sup> | 1.6 | 1.5 |
|  Average Monthly Delivered Orders | 148947 | 82494 |

---

____________

(1) Corresponds to the average number of users who place an order during the month (either acquisitions or reorder users), net of cancelled orders.

(2) Corresponds to the average number of times customers place and receive orders per month.

[**Table of Contents**](#TOC001)

---

| | | |
|:---|:---|:---|
|  | **For the year ended <br>December 31,** | **For the year ended <br>December 31,** |
|  **Data for Brazil** | **2021** | **2022** |
|  Average Monthly Active Users | 5,012 | 9,088 |
|  Average Monthly Active Rate | 1.6 | 1.7 |
|  Average Monthly Delivered Orders | 7,935 | 15,068 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **For the year ended December 31,** | **For the year ended December 31,** | **For the year ended December 31,** |
|  | **2021** | **2022** | **2022** |
|  | **(in COP$ Thousand)** | **(in COP$ Thousand)** | **(in U.S.$)<sup>(1)</sup>** |
|  Net loss for the year | **(163943170)** | **(294421747)** | **(61207797)** |
|  Net loss from discontinued operations | (38265459) | (24115983) | (5013509) |
|  Net loss for the year from continuing operations | **(125677711)** | **(270305764)** | **(56194288)** |
|  Income tax benefit (expense) |  | (1449) | (301) |
|  Net financial result | (7204241) | (114652524) | (23835293) |
|  Net loss on exchange differences | (1613669) | (16222617) | (3372545) |
|  Finance expenses | (5638021) | (98528463) | (20483236) |
|  Finance income | 47449 | 98556 | 20489 |
|  **Operating loss** | **(118473470)** | **(155651791)** | **(32358694)** |
|  Depreciation and amortization | 8760609 | 8752589 | 1819589 |
|  **EBITDA** | **(109712861)** | **(146899202)** | **(30539105)** |

---

____________

(1) For convenience purposes only, amounts in U.S.$ have been translated to U.S. dollars using an exchange rate of COP$4,810.20 to U.S.$1.00, which corresponds to the *tasa representativa del mercado* ("representative market rate") as of December 31, 2022, as reported by Colombia's *Banco de la República*. These translations should not be considered representations that any such amounts have been, could have been or could be converted at that or any other exchange rate. See "Risk Factors — Inflation and certain government measures to curb inflation may have adverse effects on the economies of the countries where we operate, our business and our operations."

#### Critical Accounting Estimates and Judgments
Our financial statements are prepared in conformity with IFRS. In preparing our financial statements, we make assumptions, judgments and estimates that can have a significant impact on amounts reported in our financial statements. We base our assumptions, judgments and estimates on historical experience and various other factors that we believe to be reasonable under the circumstances. Actual results could differ materially from these estimates under different assumptions or conditions. We regularly reevaluate our assumptions, judgments and estimates. Our significant accounting policies are described in Note 2 and Note 4 to our consolidated financial statements for the years ended December 31, 2021 and 2022, included elsewhere in this prospectus.

#### Recent Accounting Pronouncements
For information about recent accounting pronouncements that will apply to us in the near future, see Note 2 and Note 5 to our consolidated financial statements for the years ended December 31, 2021 and 2022, included elsewhere in this prospectus.

#### Description of Principal Line Items

#### Net revenues
Net revenues are obtained mainly from grocery sales through our Merqueo online platform. These revenues include sales of goods in key categories, such as fresh produce, pantry, meat, seafood, personal care, and household goods, among others. Additionally, we earn revenues from delivery fees charged to customers in the case of orders that don't reach a specific monetary threshold. Revenues are net of promotional discounts, vouchers, and customer cards and are recognized when goods are delivered and billed. Taxes collected from customers are not included in this item.

#### Cost of Sales
Cost of sales includes the cost of inventories purchased and other costs directly related to the sale of products, such as rights of use of our warehouses and personnel in charge of merchandise receipt.

[**Table of Contents**](#TOC001)

#### Gross profit
Gross profit is measured as revenue from contracts with customers net cost of sales.

#### Selling Expenses
Selling expenses consist primarily of (i) personnel expenses (including salaries, benefits, and share-based compensation, of all personnel directly involved in business development and marketing activities), (ii) transactions fees and commissions, and (iii) advertising costs in digital platforms and social media. We expect that our sales and marketing expenses will decrease as a percentage of revenues as we continue optimizing our processes.

#### Administrative Expenses
Administrative expenses consist of personnel expenses, including salaries, benefits, and share-based compensation, for all personnel directly involved in an administrative function. Those expenses include personnel in Colombia and Brazil. It also includes non-refundable taxes, travel expenses, depreciation of fixed assets, amortization of the right-of-use assets for our office space and professional services, among others in both countries.

We expect administrative expenses to increase as a result of becoming a publicly-traded company and implementing the compliance, governance, legal and reporting capacities required. For additional information, see "Risk Factors — Risks Related to Operating as a Public Company."

#### Technology expenses
Technology expenses are related to research and development activities performed by our engineering team. Development costs may be capitalized if conditions under International Accounting Standard ("IAS 38") are met.

Technology expenses associated with our research and development activities are mainly composed by engineering, prototyping, production, and testing, and include mainly the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• personnel-related expenses for personnel performing research activities, including salaries, benefits, social security contributions, travel and share-based compensation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fees paid to third parties, such as consultants and contractors, for outsourced engineering services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• expenses related to software costs and licenses, and third-party services; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• amortization of the intangible asset associated with capitalized development costs and depreciation for equipment used in research and development activities.

We expect our research and development costs to decrease as a percentage of revenues as we continue optimizing our processes.

#### Other operating income and expenses
Other operating income and expenses include a variety of non-recurring costs and income.

#### Operating profit (loss)
Operating profit (loss) is measured as gross profit net of operating expenses.

#### Finance income
Finance income is composed of interest generated on accounts held by the Company.

#### Finance expenses
Finance expenses are composed mostly of interest paid (credit lines and leasings) and some taxes related to bank transactions.

#### Net loss on exchange differences
Net loss on exchange differences is related to exchange transactions we perform during each period mainly related to funding rounds, debt financing, and foreign suppliers payments.

[**Table of Contents**](#TOC001)

#### Recent Developments
In April 2022, we entered into the BLAO Loan Agreement and the IDB-I Loan Agreement, for U.S.$18,000,000 and U.S.$4,000,000, respectively, with interest accruing at rates per annum ranging from 9.75% to 12.75% and maturing in April 2029. Each loan had substantially similar terms. These loans are secured by pledge agreements and guarantees in favor of the lenders. See "Collateral Agreements." The BLAO Loan Agreement was assigned on February 23, 2023 under the BLAO Assignment from BLAO to BLAO SICAV-SIF. In connection with this assignment, the guarantees in favor of BLAO were assigned to BLAO SICAV-SIF.

#### Results of Operations
We operate our business and report our results of operations in three principal business segments: (i) Colombia, (ii) Brazil, and (iii) Mexico (*discontinued operation*).

During the second and third quarter of 2022, we changed our focus and are no longer targeting rapid growth. Instead, we are focused on building our path to profitability. While 2021 was a year of expansion, in 2022 we were focused on operational efficiency in our strongest markets. During the year ended December 31, 2022, we closed several warehouses in different geographies, which led to a decrease in net revenues. Our administrative expenses (and therefore our operating loss) grew during 2022 due to the closing of warehouses and severance costs. Some penalties related to the early termination of lease agreements that are not related to our day-to-day business were also paid.

#### Year Ended December 31 , 2022 compared to Year Ended December 31 , 2021
The following table sets forth our income statement data for the periods indicated on a consolidated basis:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the year ended December 31,** | **For the year ended December 31,** | **For the year ended December 31,** | **For the year ended December 31,** |
|  | **2021** | **2022** | **2022** | **Variation <br>(%)** |
|  | **(in COP$ Thousands)** | **(in COP$ Thousands)** | **(in U.S.$)<sup>(1)</sup>** | |
|  **Continuing Operations** |  |  |  |  |
|  Net revenues | 205600950 | 133906761 | 27838086 | (35)% |
|  Cost of sales | (193890132) | (126746164) | (26349458) | (35)% |
|  **Gross profit** | **11710818** | **7160597** | **1488628** | **(39)%** |
|  Selling expenses | (79775558) | (75224959) | (15638634) | (6)% |
|  Administrative expenses | (41755390) | (70031608) | (14558980) | 68% |
|  Technology expenses | (4594339) | (6579776) | (1367880) | 43% |
|  Other operating income | 1303585 | 2167920 | 450692 | 66% |
|  Other operating expenses | (5362586) | (13143965) | (2732519) | 145% |
|  **Operating loss** | **(118473470)** | **(155651791)** | **(32358694)** | **31%** |
|  Financial income | 47449 | 98556 | 20489 | 108% |
|  Financial expenses | (5638021) | (98528463) | (20483236) | 1648% |
|  Net loss on exchange differences | (1613669) | (16222617) | (3372545) | 905% |
|  Net financial results | (7204241) | (114652524) | (23835293) | 1477% |
|  **Loss before income tax** | **(125677711)** | **(270304315)** | **(56193987)** | **115%** |
|  Income tax benefit |  | (1449) | (301) | 0% |
|  **Net loss from continuing operations for the year** | **(125677711)** | **(270305764)** | **(56194288)** | **115%** |
|  Net loss from discontinued operations | (38265459) | (24115983) | (5013509) | (37)% |
|  **Net loss for the year** | **(163943170)** | **(294421747)** | **(61207797)** | **80%** |

---

____________

(1) For convenience purposes only, amounts in U.S.$ have been translated to U.S. dollars using an exchange rate of COP$4,810.20 to U.S.$1.00, which corresponds to the *tasa representativa del mercado* ("representative market rate") as of December 31, 2022, as reported by Colombia's *Banco de la República*. These translations should not be considered representations that any such amounts have been, could have been or could be converted at that or any other exchange rate. See "Risk Factors — Inflation and certain government measures to curb inflation may have adverse effects on the economies of the countries where we operate, our business and our operations."

[**Table of Contents**](#TOC001)

*Net revenues*

Net revenues decreased by COP $71,694,189 thousand, or 35%, from COP $205,600,950 thousand for the year ended December 31, 2021 to COP $133,906,761 thousand during the year ended December 31, 2022. The decrease was mainly attributable to a 39% decrease in average monthly delivered orders from 156,882 during the year ended 2021 to 95,562 during the year ended 2022, and, slightly offset by an 7% increase in the average order value, from U.S.$22.70 during the year ended December 31, 2021, to U.S.$24.28 during the year ended December 31, 2022.

*Cost of sales*

Cost of sales decreased COP $67,143,968 thousand, or 35%, from COP $193,890,132 thousand for the year ended December 31, 2021 to COP $126,746,164 thousand during the year ended December 31, 2022. The decrease was attributable to the decrease in retail sales.

*Gross profit*

Gross profit decreased COP $4,550,221 thousand, or 39%, from COP $11,710,818 thousand for the year ended December 31, 2021 to COP $7,160,597 thousand during the year ended December 31, 2022. The decrease was attributable mainly to a smaller volume of sales, some rapid inventory evacuations as a result of the closure of the least efficient warehouses, and increases in merchandise prices due to inflationary pressures that were not fully transferred to end customers. As a result, gross margin for the year ended December 31, 2022 was 5.35%, a decrease of 0.35 percentage points from 5.70% for the year ended December 31, 2021.

*Selling expenses*

Selling expenses decreased COP $4,550,599 thousand, or 6%, from COP $79,775,558 thousand for the year ended December 31, 2021 to COP $75,224,959 thousand during the year ended December 31, 2022. The decrease was primarily attributable to a decrease of COP $2,339,813 thousand in services, and a decrease of COP $2,210,786 thousand in benefits to employees and external personnel, advertising, commissions, other selling expenses related with operations team reduction and closing of warehouses.

*Administrative expenses*

Administrative expenses increased COP $28,276,218 thousand, or 68%, from COP $41,755,390 thousand during the year ended December 31, 2021 to COP $70,031,608 thousand during the year ended December 31, 2022. This increase was primarily attributable to an increase in legal, accounting, and corporate consultancies fees associated with the preparation of a potential initial public offering, an increase in the administrative staff during the first half of the year (considering the launch of the Brazil segment in July 2021), but were partially offset by a net decrease in travel expenses, commissions, non-recoverable income tax, among others.

*Technology expenses*

Technology expenses increased COP $1,985,437 thousand, or 43%, from COP $4,594,339 thousand during the year ended December 31, 2021 to COP $6,579,776 thousand during the year ended December 31, 2022. This increase was primarily attributable to (i) an increase of COP $2,220,846 thousand in expenses related to technology services, such as platforms like Amazon Web Services, Google, or Zendesk, among others, in order to strengthen our platforms and performance, and (ii) a net decrease of COP $235,409 thousand in the amortization of the technology intangible assets (technology developments capitalized previously), wages and salaries, and infrastructure costs.

*Other operating income*

Other operating income increased by COP $864,335 thousand, or 66%, from COP $1,303,585 thousand during the year ended December 31, 2021 to COP $2,167,920 thousand during the year ended December 31, 2022. This increase was primarily attributable to a higher income from the sale of property, plant, and equipment, related to the closing of the inefficient warehouses.

[**Table of Contents**](#TOC001)

*Other operating expenses*

Other operating expenses increased by COP $7,781,379 thousand, or 145%, from COP $5,362,586 thousand during the year ended December 31, 2021 to COP $13,143,965 thousand during the year ended December 31, 2022. This increase was primarily attributable to the impairment of intangible and other assets period, taxes, and losses on disposal of property plant and equipment, related to the halting of several IT projects and the closing of several warehouses in mid-2022.

*Operating loss*

For the reasons described above, operating loss for the year ended December 31, 2022 was COP $155,651,791 thousand, an increase of COP $37,178,321 thousand, or 31%, from COP $118,473,470 thousand for the year ended December 31, 2021. As mentioned previously, this increase was mainly due to closing and severance expenses in 2022 in order to improve our EBITDA and reduce our cash needs in the coming months.

*Financial income*

Financial income for the year ended December 31, 2022 was COP $98,556 thousand, an increase of COP $51,107 thousand, or 108%, from COP $47,449 thousand for the year ended December 31, 2021. This increase was primarily attributable to an increase in interest income on cash and cash equivalents held in our checking and savings accounts. Our levels of cash that generate interests depend highly on financing rounds since cash flow from operations is still negative.

*Finance Expenses*

Finance expenses for the year ended December 31, 2022 were COP $98,528,463 thousand, an increase of COP $92,890,442 thousand, from COP $5,638,021 thousand for the year ended December 31, 2021. This increase was mainly attributable to an increase of COP $86,142,628 thousand related to the warrants issued to investors during the period, followed by an increase of $6,747,814 thousand in interest, commissions and expenses, mostly related to indebtedness incurred with IDB-I and BLAO during the first half of the year 2022.

*Net loss on exchange differences*

Loss on exchange differences for the year ended December 31, 2022 was COP $16,222,617 thousand, an increase of COP $14,608,948 thousand, from COP $1,613,669 thousand for the year ended December 31, 2021. This increase was primarily attributable to indebtedness incurred in dollars with IDB-I and BLAO during the first half of the year 2022.

*Net financial result*

Because of the reasons described above, net financial result for the year ended December 31, 2022 was negative COP $114,652,524 thousand, an increase of COP $107,448,283 thousand, from COP $7,204,241 thousand for the year ended December 31, 2021. As mentioned previously, this increase was mainly due to the warrants issued to investors during the period, and the net loss on foreign exchange differences attributable to indebtedness incurred in dollars with IDB-I and BLAO during the first half of the year 2022.

*Loss before income tax*

Loss before income tax for the year ended December 31, 2022 was COP $270,304,315 thousand, an increase of COP $144,626,604 thousand, or 115%, from COP $125,677,711 thousand for the year ended December 31, 2021.

*Income tax expense*

Income tax expense for the year ended December 31, 2022 was COP $1,449, from COP $0 thousand for the year ended December 31, 2021. This increase was attributable to presumptive income tax applied to the selling of certain assets related to the closing of some warehouses.

[**Table of Contents**](#TOC001)

*Net loss from continuing operations*

For the reasons described above, net loss from continuing operations for the year ended December 31, 2022 was COP $270,305,764 thousand, an increase of COP $144,628,053 thousand, or 115%, from COP $125,677,711 thousand for the year ended December 31, 2021.

#### Colombia
During the year ended December 31, 2021, our main goal in Colombia was to grow and to expand geographically. However, during the second and third quarter of 2022, we changed our focus and are no longer targeting rapid growth. Instead, we are focused on building our path to profitability. While 2021 was a year of expansion, in 2022 we were focused on operational efficiency in our strongest markets. During the year ended December 31, 2022, we closed several warehouses in different cities, which led to a decrease in net revenues.

The following table sets forth our income statement data for the periods indicated for our Colombia segment:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the year ended December 31,** | **For the year ended December 31,** | **For the year ended December 31,** | **For the year ended December 31,** |
|  | **2021** | **2022** | **2022** | **Variation (%)** |
|  | **(in COP$ Thousands)** | **(in COP$ Thousands)** | **(in U.S.$)<sup>(1)</sup>** | |
|  Net revenues | 204358789 | 111706104 | 23222757 | (45)% |
|  Cost of sales | (188732819) | (102416145) | (21291453) | (46)% |
|  Gross Profit | **15625970** | **9289959** | **1931304** | **(41)%** |
|  Selling expenses | (76080105) | (56031276) | (11648430) | (26)% |
|  Administrative expenses | (36222600) | (56849408) | (11818512) | 57% |
|  Technology expenses | (4594339) | (6579776) | (1367880) | 43% |
|  Other operating income | 1303585 | 2167920 | 450692 | 66% |
|  Other operating expenses | (5349388) | (12777120) | (2656255) | 139% |
|  **Total cost and operating expenses** | **(309675666)** | **(232485805)** | **(48331838)** | **(25)%** |
|  **Operating loss** | **(105316877)** | **(120779701)** | **(25109081)** | **15%** |
|  Depreciation and amortization | (8399374) | (7657715) | (1591974) | (9)% |
|  Impairment of intangible assets | (747078) | (7198284) | (1496463) | 864% |

---

____________

(1) For convenience purposes only, amounts in U.S.$ have been translated to U.S. dollars using an exchange rate of COP $4,810.20 to U.S.$1.00, which corresponds to the *tasa representativa del mercado* ("representative market rate") as of December 31, 2022, as reported by Colombia's *Banco de la República*. These translations should not be considered representations that any such amounts have been, could have been or could be converted at that or any other exchange rate. See "Risk Factors — Inflation and certain government measures to curb inflation may have adverse effects on the economies of the countries where we operate, our business and our operations*."*

*Net revenues*

Net revenues decreased by COP $92,652,685 thousand, or 45%, from COP $204,358,789 thousand for the year ended December 31, 2021 to COP $111,706,104 thousand during the year ended December 31, 2022. The decrease was attributable mainly to a 45% decrease in the average monthly delivered orders, from 148,947 to 82,494 respectively. We closed our activities in several cities and adopted a less aggressive position in terms of pricing and promotions.

*Cost of sales*

Cost of sales decreased by COP $86,316,674 thousand, or 46%, from COP $188,732,819 thousand for the year ended December 31, 2021 to COP $102,416,145 thousand for the year ended December 31, 2022. The decrease was the result of lower level of sales.

*Gross profit*

Gross profit decreased by COP $6,336,011 thousand, or 41%, from COP $15,625,970 thousand for the year ended December 31, 2021 to COP $9,289,959 thousand during the year ended December 31, 2022. The decrease was attributable mainly to a lower level of sales resulting from an aggressive pricing strategy at the beginning of the

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year and some inventory evacuations as a result of the closure of several warehouses. As a result, gross margin for the year ended December 31, 2022 was 8.32%, an increase of 0.67 percentage points from 7.65% for the year ended December 31, 2021.

*Selling expenses*

Selling expenses decreased by COP $20,048,829 thousand, or 26%, from COP $76,080,105 thousand for the year ended December 31, 2021 to COP $56,031,276 thousand during the year ended December 31, 2022. This decrease was attributable mainly to a reduction in our marketing team, both in size and seniority. We began reducing employee related costs and advertising expenses during the second quarter of 2022.

*Administrative expenses*

Administrative expenses increased by COP $20,626,808 thousand, or 57%, from COP $36,222,600 thousand during the year ended December 31, 2021 to COP $56,849,408 thousand during the year ended December 31, 2022. This was primarily attributable to an increase in legal, accounting and corporate consulting fees, as well as investments made in human and technological resources for the preparation of a potential initial public offering considering we required IFRS experts, internal control experts and more robust information systems.

*Technology expenses*

Technology expenses increased by COP $1,985,437 thousand, or 43%, from COP $4,594,339 thousand during the year ended December 31, 2021 to COP $6,579,776 thousand during the year ended December 31, 2022. The increase was mainly attributable to costs incurred to strengthen our platforms, apps stability and performance and infrastructure.

*Other operating income*

Other operating income increased by COP $864,335 thousand, or 66%, from COP $1,303,585 thousand during the year ended December 31, 2021 to COP $2,167,920 thousand during the year ended December 31, 2022. This increase was primarily attributable to revenues from asset disposals, considering the closure of certain warehouses.

*Other operating expenses*

Other operating expenses increased by COP $7,427,732 thousand, or 139%, from COP $5,349,388 thousand during the year ended December 31, 2021 to COP $12,777,120 thousand during the year ended December 31, 2022. This increase was primarily due to the impairment of intangible and other assets related to the halting of several IT projects and the closing of several warehouses in mid-2022 technology development projects not concluded, and non-income local taxes.

*Total cost and operating expenses*

Total cost and operating expenses for the year ended December 31, 2022 were COP $232,485,805 thousand, an improvement of COP $77,189,861 thousand, or 25%, from COP $309,675,666 thousand for the year ended December 31, 2021. This decrease was mainly attributable to a decrease in cost of sales and selling expenses due to the lower sales volume, partially offset by an increase in administrative expenses, technology expenses, and other operating expenses for the reasons described above.

*Operating loss*

Because of the reasons described above, operating loss for the year ended December 31, 2022 was COP $120,779,701 thousand, a decrease of COP $15,462,824 thousand, or 15%, from COP $105,316,877 thousand for the year ended December 31, 2021.

*Depreciation and amortization*

Depreciation and amortization for the year ended December 31, 2022 was COP $7,657,715 thousand, a decrease of COP $741,659 thousand, or 9%, from COP $8,399,374 thousand for the year ended December 31, 2021. This decrease was mainly attributable to the depreciation of right-of-use assets (mainly warehouse leases) and property, plant, and equipment, as well as the amortization of our intangible assets (technology expenses).

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*Impairment of intangible assets*

Impairment of intangible assets for the year ended December 31, 2022 was COP $7,198,284 thousand, an increase of COP $6,451,206 thousand, from COP $747,078 thousand for the year ended December 31, 2021. This was primarily due to the halting of several IT projects in mid-2022.

#### Brazil
Revenues in Brazil grew exponentially. We have been constantly developing our activity since the second half of 2021, when we started our operations in Sao Paulo City. Selling and administrative expenses have grown accordingly. Figures of the year ended December 31, 2021, and 2022 are not fully comparable, considering our activity in Sao Paulo started during the second half of 2021.

The following table sets forth our income statement data for the periods indicated for our Brazil segment.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the year ended December 31,** | **For the year ended December 31,** | **For the year ended December 31,** | **For the year ended December 31,** |
|  | **2021** | **2022** | **2022** | **Variation (%)** |
|  | **(in COP$ Thousands)** | **(in COP$ Thousands)** | **(in U.S.$)<sup>(1)</sup>** | **(in U.S.$)<sup>(1)</sup>** |
|  Net revenues | 1242161 | 22200657 | 4615329 | 1687% |
|  Cost of sales | (5157313) | (24330019) | (5058006) | 372% |
|  **Gross loss** | **(3915152)** | **(2129362)** | **(442676)** | **(46)%** |
|  Selling expenses | (3695453) | (19193683) | (3990205) | 419% |
|  Administrative expenses | (5532790) | (13182200) | (2740468) | 138% |
|  Technology expenses |  |  |  | 0% |
|  Other operating income |  |  |  | 0% |
|  Other operating expenses | (13198) | (366845) | (76264) | 2680% |
|  **Total cost and operating expenses** | **(14398754)** | **(57072747)** | **(11864943)** | **296%** |
|  **Operating loss** | **(13156593)** | **(34872090)** | **(7249613)** | **165%** |
|  Depreciation and amortization | (361235) | (1094874) | (227615) | 203% |
|  Impairment of intangible assets |  |  |  | 0% |

---

____________

(1) For convenience purposes only, amounts in U.S.$ have been translated to U.S. dollars using an exchange rate of COP $4,810.20 to U.S.$1.00, which corresponds to the *tasa representativa del mercado* ("representative market rate") as of December 31, 2022, as reported by Colombia's *Banco de la República*. These translations should not be considered representations that any such amounts have been, could have been or could be converted at that or any other exchange rate. See "Risk Factors — Inflation and certain government measures to curb inflation may have adverse effects on the economies of the countries where we operate, our business and our operations."

*Net revenues*

Net revenues increased by COP $20,958,496 thousand, from COP $1,242,161 thousand for the year ended December 31, 2021 to COP $22,200,657 thousand during the year ended December 31, 2022. This increase was attributable mainly to the beginning of the operations in July 2021, compared to the year ended December 31, 2022. Average monthly delivered orders also presented solid growth from 7,935 during the year ended December 31, 2021, to 15,068 during the year ended December 31, 2022.

*Cost of sales*

Cost of sales increased by COP $19,172,706 thousand, from COP $5,157,313 thousand for the year ended December 31, 2021 to COP $24,330,019 thousand during the year ended December 31, 2022. This increase was attributable mainly to the beginning of the operations in July 2021 compared to the year ended December 31, 2022.

*Gross loss*

Gross loss decreased by COP $1,785,790 thousand, from COP $3,915,152 thousand for the year ended December 31, 2021 to COP $2,129,362 thousand during the year ended December 31, 2022. As a result, gross margin for the year ended December 31, 2022 was negative 9.59%, an improvement of 305.60 percentage points from negative 315.19% for the year ended December 31, 2021.

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*Selling expenses*

Selling expenses increased by COP $15,498,230 thousand, from COP $3,695,453 thousand for the year ended December 31, 2021 to COP $19,193,683 during the year ended December 31, 2022. This increase was attributable mainly to marketing and operating capacity investments.

*Administrative expenses*

Administrative expenses increased by COP $7,649,410 thousand, from COP $5,532,790 thousand during the year ended December 31, 2021 to COP $13,182,200 thousand during the year ended December 31, 2022. The increase was attributable mainly to employment costs related to the hiring of local teams.

*Other operating expenses*

Other operating expenses increased by COP $353,647 thousand, from COP $13,198 thousand during the year ended December 31, 2021 to COP $366,845 thousand during the year ended December 31, 2022. This increase was mainly attributable to additional charges and interest related to supplier payments made after the applicable due dates and losses on the disposal of property, plant, and equipment related to the closing of warehouses as operation was scaled back during mid-2022.

*Total cost and operating expenses*

Total cost and operating expenses for the year ended December 31, 2022 were COP $57,072,747 thousand, an increase of COP $42,673,993 thousand, from COP $14,398,754 thousand for the year ended December 31, 2021. This decrease was mainly attributable to a decrease in cost of sales and selling expenses due to the lower sales volume, partially offset by an increase in administrative expenses, technology expenses, and other operating expenses for the reasons described above.

*Operating loss*

For the reasons described above, operating loss for the year ended December 31, 2022 was COP $34,872,090 thousand, an increase of COP $21,715,497 thousand, from COP $13,156,593 thousand for the year ended December 31, 2021.

*Depreciation and amortization*

Depreciation and amortization for the year ended December 31, 2022 was COP $1,094,874 thousand, an increase of COP $733,639 thousand, from COP $361,235 thousand for the year ended December 31, 2021. This increase was mainly attributable to our expansion plan and the acquisition of property plant and equipment.

#### Liquidity and Capital Resources
For the year ended December 31, 2022, we recognized a net loss of COP $294,421,747 thousand. As of December 31, 2022, the financial statements reflect an excess of current liabilities over current assets of COP $51,585,470 thousand. Considering only cash and cash equivalents on hand, we have available resources of COP $4,418,060 thousand.

For the year ended December 31, 2021, we recognized a net loss of COP $163,943,170 thousand. As of December 31, 2021, the financial statements reflect an excess of current liabilities over current assets of COP $38,542,373 thousand. Considering only cash and cash equivalents on hand, we had available resources of COP $8,670,873 thousand.

Therefore, measures have been taken as approved by the board of directors that aim to preserve cash, sources of employment and long-term operation, which includes the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Closure of the ultra and express business lines and marketplace to concentrate resources and efforts on the programmed model, which is the most profitable.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Closing of the operation in Mexico in June 2022 to concentrate resources and efforts on strengthening our positioning in Colombia and expansion in Brazil.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We have also postponed all investment expenses and non-critical discretionary expenses for our operations

We have executed important initiatives that aim to drive sustainable growth with a laser focus on profitability by minimizing burn, preserving cash, maintaining sources of employment and long-term operation, and recapitalizing the business, which includes the following:

*Focusing on the core business*

We will focus 100% on the full-stack grocery delivery model.

We will focus on maintaining affordable and competitive prices, enabling access to price-sensitive Latin American households. This is still a massive market with lower competition.

*A laser focus on profitability*

We have reduced our SKUs from 10,000 to up to 3,000, which covers the need for a full grocery basket. Meanwhile, this allows us to continue prioritizing our private labels which have higher margins.

The headcount in early 2022 was 1,500. As of December 31, 2022, we had 536 employees in Colombia and 166 in Brazil.

We have shut down all but our five most profitable and efficient warehouses. The goal is to get each warehouse to breakeven.

We plan to reduce our subsidy offerings and then identify which products and coupons are more effective in leading users to complete an order with high contribution margins.

*Fundraising*

On March 15, 2022, we closed the share subscription agreement executed on October 25, 2021, with total investment of U.S.$36,250,000, generating cash flows of U.S.$16,000,000 in 2022.

In April 2022, we entered into the IDB-I Loan Agreement for U.S.$4,000,000 and the BLAO Loan Agreement for U.S.$18,000,000 to strengthen the technology platform and accelerate growth and strengthen our supply chain with yearly interest rates varying from 9.75% to 12.75% and maturing in April 2029. These loans are secured by pledge agreements and guarantees in favor of the lenders. See "Collateral Agreements".

During August 2022, we created a financing round of U.S.$17,000,000 to bridge the Company to this Offering. As of the date of this prospectus, we have obtained funds in both equity and debt from current debt-holders, shareholders and their affiliates. We intend to carefully monitor the impact of growth on our working capital needs and cash balance relative to the availability of cost-effective debt and other financing.

On September 15, 2022, we obtained a limited waiver from BLAO related to (i) certain defaults on conditions precedent to all disbursements under the BLAO Loan Agreement, and (ii) the disbursement procedure of the interest reserve amount, which allowed us to receive U.S.$2 million from the interest reserve account held with BLAO.

On September 16, 2022, we issued a warrant that allows BLAO SICAV-SIF to own a position of 5.31% upon the earliest of: (i) October 30<sup>th</sup>, 2023 or (ii) the date that is five business days prior to the consummation of this Offering. This warrant provides BLAO SICAV-SIF with an economic incentive to maximize the fair value of our stock. Other than the possibility of acting as observers (with no voting rights) in the meetings of the board of directors, BLAO SICAV-SIF's ownership position will entail the same rights as shareholders of the same share class upon conversion of the warrants. This warrant was replaced by a warrant agreement executed on November 5, 2022 on the same terms of the original warrant but with an addendum to the purchase price per share which now is $0. This warrant was further amended on December 19, 2022 replacing the issuer from Merqueo S.A.S to the Company with an expiration date of October 30, 2023, which can be exercised on any date between the date of its issuance and the day on which this Registration Statement is declared effective by the SEC (the "BLAO Warrant").

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On September 29, 2022, we obtained a limited waiver from IDB-I under the IDB-I Loan Agreement related to certain breaches of our obligation to deliver financial statements and our obligation not to incur financial debt. In connection with the limited waiver from IDB-I, we agreed to deliver and have already delivered financial statements no later than November 30, 2022, cancel the interest reserve amount holding US$0.82 million and reduce the outstanding principal amount of the loan by such amount. Thus, we agreed that the disbursement of U.S.$3,180,000 was the full disbursement of IDB-I under the IDB-I Loan Agreement.

On November 14, 2022, we obtained the BLAO Waiver 2 under the BLAO Loan Agreement, pursuant to which BLAO waived our obligation to make the interest payment that was scheduled to be paid on October 15, 2022 and any event of default that may result. Additionally, we agreed to amend the BLAO Loan Agreement to capitalize such interest payment and include it in the outstanding amount of principal effective as of October 15, 2022 and to allow for the Corporate Reorganization. As of the date of this prospectus, we are in compliance with the BLAO Loan Agreement.

On December 20, 2022, we obtained the Amendment No. 1 and Undertaking Agreement under the IDB-I Loan Agreement. Pursuant to the Amendment No. 1 and Undertaking Agreement, IDB-I waived the following defaults on covenants under the IDB-I Loan Agreement: (i) our obligation to establish a succession plan for individuals to assume relevant internal positions for our operations, (ii) our obligation to deliver within 45 days after each financial quarter a certificate of an authorized representative including an explanation of the key operating variables and calculations in reasonable detail demonstrating compliance with the financial covenants under the IDB-I Loan Agreement, or detailing any non-compliance, and (iii) our obligation to provide, after each financial quarter, the management statements and presentations delivered to the board of directors showing our and our subsidiaries' financial performance. Pursuant to the Amendment No. 1 and Undertaking Agreement, we are required to comply with such obligations no later than June 30, 2023. As of the date hereof, we have complied with our obligation to establish a succession plan. Non-compliance allows IDB-I to accelerate the outstanding debt, which we are not expected to have the financial resources to repay. Given that the remaining obligations are within our control and are not based on financial metrics we need to maintain, we expect to be able to comply with the pending requirements by June 30, 2023, and have therefore presented such outstanding loan as non-current as of December 31, 2022.

On February 15, 2023, pursuant to Limited Waiver and Amendment No. 2 (as defined below) we obtained a limited waiver from IDB-I (as defined below) under the IDB-I Loan Agreement with respect to our obligations not to incur senior debt or certain financial debt. Pursuant to the Limited Waiver and Amendment No. 2, IDB waived such obligations insofar as such covenants would prohibit us from the incurrence of senior indebtedness under certain convertible debt instruments for up to U.S.$4 million, with a maturity date not to exceed eighteen (18) months. We expect these convertible debt instruments to be senior to the IDB-I Loan Agreement.

As we are yet to obtain profitability, we currently rely on additional funding from our investors and creditors to maintain sufficient cash flows to maintain our operational viability. We are planning to raise funds through this Offering and continued follow-ons, in addition to other plans to become profitable through organic and inorganic growth. However, based on the projected cash outflows of the Company, management and the Board of Directors have determined that we do not have sufficient existing cash to maintain our operations over the subsequent 12 months from the issuance date of our unaudited condensed consolidated financial statements without obtaining additional funding. This matter results in a material uncertainty that casts substantial doubt regarding the Company's ability to continue as a going concern.

The plans and measures that the board of directors and management have taken and result in their determination that the use of the going concern assumption is warranted. Therefore, our consolidated financial statements have been prepared on a going concern basis and do not include any adjustments to carrying values and the classification of reported assets, liabilities and expenses that might otherwise be required if the going concern is not appropriate. For more information, see Note 2 to our consolidated financial statements for the years ended December 31, 2021 and 2022, included elsewhere in this prospectus.

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#### Cash Flows

#### Year Ended December 31 , 2022 compared to Year Ended December 31 , 2021
The following table shows the generation and use of cash for the periods indicated:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the year ended December 31** | **For the year ended December 31** | **For the year ended December 31** |
|  | **2021** | **2022** | **2022** |
|  | **(in COP$ Thousands)** | **(in COP$ Thousands)** | **(in U.S.$)<sup>(1)</sup>** |
|  **Cash Flow Data** |  |  |  |
|  Net cash flows from operating activities | (143694152) | (181542191) | (37741090) |
|  Net cash flows used in investing activities | (10715965) | (7734819) | (1608004) |
|  Net cash flows from financing activities | 148567269 | 183831081 | 38216931 |

---

____________

(1) For convenience purposes only, amounts in U.S.$ have been translated to U.S. dollars using an exchange rate of $4,810.20 to U.S.$1.00, which corresponds to the *tasa representativa del mercado* ("representative market rate") as of December 31, 2022, as reported by Colombia's *Banco de la República*. These translations should not be considered representations that any such amounts have been, could have been or could be converted at that or any other exchange rate. See "Risk Factors — Inflation and certain government measures to curb inflation may have adverse effects on the economies of the countries where we operate, our business and our operations."

*Operating Activities*

We are not yet profitable and therefore the cash obtained from our operating activities is dedicated primarily to purchasing inventory for our operations and managing our working capital needs, which includes working closely with our suppliers to effectively manage our cash position.

Our net cash outflow from operating activities was COP $181,542,191 thousand for the year ended December 31, 2022. This cash outflow was primarily due to the net loss for the year of COP $294,421,747 thousand (although we had a positive gross margin, our operations generated losses as we focused on building scale, and therefore our cash flows from operations were used primarily for selling expenses COP $75,224,959 thousand and administrative expenses of COP $70,031,608 thousand) and the positive effect of non-cash adjustments to reconcile loss before tax and working capital changes of COP $112,879,556 thousand.

Our net cash outflow from operating activities was COP $143,694,152 thousand for the year ended December 31, 2021. This cash outflow was primarily due to the net loss for the year of COP $163,943,170 thousand (although we had a positive gross margin, our operations generated losses as we focused on building scale, and therefore our cash flows from operations were used primarily for selling expenses COP $79,775,558 thousand and administrative expenses of COP $41,755,390 thousand) and the positive effect of non-cash adjustments to reconcile loss before tax and working capital changes of COP $20,249,018 thousand.

In both 2021 and 2022, our cash flow was negative as we were still building scale and our growing our customer base. The changes between 2021 and 2022 are the result of our international expansion process that led to expenses related to opening warehouses and a low-price strategy in new markets to build our customer base quickly and gain market share.

*Investing Activities*

Our net cash outflow from investing activities was COP $7,734,819 thousand for the year ended December 31, 2022, primarily due to (i) the net cash flow from the disposal and development of intangible assets expenditures associated with our technology platform, (ii) the net cash outflow from the sale and purchase of property and equipment, and (iii) the net cash inflow from the sale of property, plant, and equipment in discontinued operations. Considering that we are a technology company, amounts invested in software development are higher than in traditional retail or other industries. We try to be a light-asset company and for this reason, we rent our warehouses. Our capital expenditures are not focused on facilities.

Our net cash outflow from investing activities was COP $10,715,965 thousand for the year ended December 31, 2021, primarily due to (i) the development of intangible assets expenditures associated with our technology platform, (ii) the purchase of property and equipment, and (iii) the net cash outflow from the sale of property, plant, and equipment in discontinued operations.

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#### Financing Activities
Our net cash inflow from financing activities was COP $183,831,081 thousand for the year ended December 31, 2022, primarily due to (i) proceeds from additional paid-in capital, and (ii) contributions for future capital increases, offset by net proceeds of debt and payments associated with our leased assets.

Our net cash inflow from financing activities was COP $148,567,269 thousand for the year ended December 31, 2021, primarily due to (i) proceeds from additional paid-in capital, and (ii) contributions for future capital increases, offset by net proceeds of debt and payments associated with our leased assets.

#### Indebtedness
As of December 31, 2022, we had COP $109,518,683 thousand in outstanding loans and borrowings and COP $9,867,647 thousand in lease liabilities.

As of December 31, 2021, we had COP $7,946,568 thousand in outstanding loans and borrowings and COP $20,044,938 thousand in lease liabilities.

The following is a description of our indebtedness as of December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  **Financial institution** | **Interest % per annum** | **Maturity** | **As of December 31, 2021** | **As of December 31, 2022** |
|  Blue Like An Orange Sustainable Capital | Daily SOFR + 9% | 84 | 0 | 90541436 |
|  BID Invest – IDB Invest | Daily SOFR + 9% | 84 | 0 | 15773890 |
|  Banco de Bogotá S.A. | 4.60% | Non-Applicable | 727092 | 454806 |
|  Banco de Bogotá S.A. | 13.09% | 12 | 0 | 166667 |
|  Banco de Occidente S.A. | IBR + 3.40% | 24 | 456667 | 113828 |
|  Banco de Occidente S.A. | IBR + 5.25% | 24 | 316194 | 45169 |
|  Banco de Occidente S.A. | IBR + 3.96% | 24 | 308750 | 113076 |
|  Banco de Occidente S.A. | 13.79% | 36 | 0 | 506944 |
|  Bancolombia S.A. | IBR + 7.47% | 24 | 1750000 | 750000 |
|  Bancolombia S.A. | IBR + 9.55% | 24 | 511000 | 255500 |
|  Bancolombia S.A. | 13.04% | 12 | 0 | 82550 |
|  Bancolombia S.A. | 12.82% | 12 | 0 | 90820 |
|  Bancolombia S.A. | 16.13% | 24 | 0 | 420000 |
|  Banco Davivienda S.A. | IBR + 4.5% | 12 | 550000 | 0 |
|  Banco Davivienda S.A. | IBR MV + 1.71% + 4.2% | 12 | 204165 | 0 |
|  Banco Davivienda S.A. | IBR MV + 1.71% + 4.2% | 12 | 85664 | 0 |
|  Banco Davivienda S.A. | IBR MV + 1.70% + 4.00% | 12 | 46659 | 0 |
|  Banco de Bogotá S.A. | 5.58% | 18 | 353506 | 0 |
|  Banco de Bogotá S.A. | 5.22% | 12 | 433833 | 0 |
|  Bancolombia S.A. | IBR + 5.80% | 24 | 312375 | 0 |
|  Bancolombia S.A. | IBR + 6.79% | 24 | 284500 | 0 |
|  Bancolombia S.A. | IBR + 8.15% | 12 | 76997 | 0 |
|  Banco de Comercio Exterior de Colombia S.A. | DTF + 6.5% | 24 | 595834 | 0 |
|  Dann Regional Compañía de Financiamiento Comercial S.A. | DTF | 18 | 832903 | 0 |
|  **Total** |  |  | **7846139** | **109314686** |
|  Current |  |  | 6567552 | 8965126 |
|  Non-current |  |  | 1278587 | 100349560 |

---

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*Loans and Borrowings — Overview*

Since January 1, 2020, we have entered into short-term and long-term loan agreements with several Colombian and international financial institutions. The principal amount of the loan agreements with Colombian financial institutions varies from COP $257,000 thousand to COP $3,000,000 thousand, while the principal amount of the loan agreements with international institutions is up to COP $90,541,436 thousand. The loan agreements have interests accruing at rates ranging from 3.4% to approximately 16.13% depending on local and foreign reference interest rates and mature on periods ranging from 12 to 36 months for the agreements with local institutions, and up to seven years for the agreements with international institutions. As of December 31, 2022 COP $109,314,686 thousand was outstanding under the mentioned loans. As of December 31, 2021 COP $7,846,139 thousand was outstanding under the mentioned loans.

We have developed business relationships with some of the biggest Colombian banks. Short- and middle-term loans have been commonly used by the Company to cover (i) the working capital needs of the natural seasonality of its activity, (ii) the purchase of some operative assets, (iii) payments of merchandise and general expenses suppliers, (iv) acquisition of users and (v) geographical expansion.

*Loans and Borrowings — Description*

In January 2022, Banco de Occidente disbursed COP $730,000 thousand from an available credit line, with effective annual interest rates starting from approximately 7.5% or higher depending on local reference rates and maturing on January 2025.

In February 2022, Banco de Bogota disbursed COP $1,000,000 thousand from an available credit line, with effective annual interest rates starting from approximately 7.5% or higher depending on local reference rates and maturing on February 2023.

In February 2022, Bancolombia disbursed COP $1,040,478 thousand from an available credit line, with effective annual interest rates starting from approximately 7.5% or higher depending on local reference rates and maturing in February 2023.

In March 2022, Bancolombia disbursed COP $630,000 thousand from an available credit line, with effective annual interest rates starting from approximately 7.5% or higher depending on local reference rates and maturing in March 2024.

In April 2022, Banco Davivienda disbursed COP $400,000 thousand from an available credit line, with effective annual interest rates starting from approximately 7.5% or higher depending on local reference rates. We repaid this credit line. In April 2022, we entered into two substantially identical loan agreements with BLAO and IDB-I, respectively, in the amount of U.S.$22 million (for U.S.$18,000,000 and U.S.$4,000,000, respectively), with yearly interest rates varying from 9.75% to 12.75% and maturing in April 2029. These loans are secured by pledge agreements and guarantees in favor of the lenders. See "Collateral Agreements." From the U.S.$22 million, we initially received a disbursement of U.S.$19.18 million, with the remainder held in interest reserve accounts.

In connection with the limited waiver from BLAO, on September 15, 2022 we received U.S.$2 million from the interest reserve account held with BLAO. Thus, current combined disbursements amount to U.S.$21.18 million. In connection with this disbursement, we granted the BLAO Warrant.

On September 29, 2022, we obtained a limited waiver from IDB-I under the IDB-I Loan Agreement related to certain breaches of our obligation to deliver financial statements and our obligation not to incur financial debt. In connection with the limited waiver from IDB-I, we agreed to cancel the interest reserve amount holding US$0.82 million and reduce the outstanding principal amount of the loan on such amount. Thus, we agreed that the disbursement of U.S.$3,180,000 was the full disbursement of IDB-I under the IDB-I Loan Agreement.

On September 15, 2022, we entered into a convertible debt note agreement for U.S.$3,000,000 with vehicles affiliated with Portland Private Equity Group (the "Portland Convertible Note Agreement 1"). The Portland Convertible Note Agreement 1 was later amended and restated on December 29, 2022 and then amended and restated on January 20, 2023. On February 2, 2023, the vehicles affiliated with Portland Private Equity Group formally notified the exercise of the conversion of the Portland Convertible Note Agreement 1 and received the aggregate amount of 277,067,428 Series D-1 preferred shares as a result of such conversion. 277,067,428 Series D-1 preferred shares were issued.

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On November 2, 2022, we entered into a convertible debt note agreement for U.S.$1,111,111 with Portland JSX Limited (the "PJSX Convertible Note Agreement 1"). The PJSX Convertible Note Agreement 1 was later amended and restated on December 29, 2022, replacing the issuer from Merqueo S.A.S to the Company and later further amended on January 20, 2023. The PJSX Convertible Note Agreement 1 shall be paid by Merqueo on the day after the date of effectiveness of this registration statement. Portland JSX Limited at its own discretion may request the payment in cash or in ordinary shares. Prior to the completion of this Offering, Merqueo intends to agree for Portland JSX Limited to receive ordinary shares at par value U.S.$0.11232 per share and not cash as a result of the conversion of the PJSX Convertible Note Agreement 1 prior to the completion of this Offering. Portland JSX Limited is entitled to receive ordinary shares in an amount calculated using a price per share equal to the applicable price per share of the initial public offering with a discount of 35%. This note has a 18% effective annual interest rate.

On November 17, 2022, we entered into a convertible debt note agreement for U.S.$555,556 with Portland JSX Limited (the "PJSX Convertible Note Agreement 2"). The PJSX Convertible Note Agreement 2 was later amended and restated on December 29, 2022, replacing the issuer from Merqueo S.A.S to the Company and later further amended on January 20, 2023. The PJSX Convertible Note Agreement 2 shall be paid by Merqueo on the day after the date of effectiveness of this registration statement. Portland JSX Limited at its own discretion may request the payment in cash or in ordinary shares. Prior to the completion of this Offering, Merqueo intends to agree for Portland JSX Limited to receive ordinary shares at par value U.S.$0.11232 per share and not cash as a result of the conversion of the PJSX Convertible Note Agreement 2 prior to the completion of this Offering. Portland JSX Limited is entitled to receive ordinary shares in an amount calculated using a price per share equal to the applicable price per share of the initial public offering with a discount of 35%. This note has a 18% effective annual interest rate.

On December 8, 2022, we entered into a convertible debt note agreement for U.S.$555,556 with Portland JSX Limited (the "PJSX Convertible Note Agreement 3"). The PJSX Convertible Note Agreement 3 was later amended and restated on December 29, 2022, replacing the issuer from Merqueo S.A.S to the Company and later further amended on January 20, 2023. The PJSX Convertible Note Agreement 3 shall be paid by Merqueo on the day after the date of effectiveness of this registration statement. Portland JSX Limited at its own discretion may request the payment in cash or in ordinary shares. Prior to the completion of this Offering, Merqueo intends to agree for Portland JSX Limited to receive ordinary shares at par value U.S.$0.11232 per share and not cash as a result of the conversion of the PJSX Convertible Note Agreement 3 prior to the completion of this Offering. Portland JSX Limited is entitled to receive ordinary shares in an amount calculated using a price per share equal to the applicable price per share of the initial public offering with a discount of 35%. This note has a 18% effective annual interest rate.

*New Loans and Borrowings*

The following is a description of what we incurred after December 31, 2022.

*Convertible Debt Notes*

On January 20, 2023, we entered into a convertible debt note agreement for U.S.$500,000 with Portland JSX Limited (the "PJSX Convertible Note Agreement 4"). The PJSX Convertible Note Agreement 4 is mandatorily convertible on the date of effectiveness of this registration statement. Portland JSX Limited is entitled to receive ordinary shares in an amount calculated using a price per share equal to the applicable price per share of the initial public offering with a discount of 35%. Ordinary shares issued as a result of conversion of the PJSX Convertible Note Agreement 4 will be subject to a lock-up period of nine months counting since the date of the closing of this Offering. Merqueo intends to agree for Portland JSX Limited to receive ordinary shares at par value of U.S.$0.11232 as a result of the conversion prior to the completion of this Offering.

On January 20, 2023, we entered into a convertible debt note agreement for U.S.$780,000 with Portland JSX Limited (the "PJSX Convertible Note Agreement 5" and together with, the PJSX Convertible Note Agreement 1, the PJSX Convertible Note Agreement 2, the PJSX Convertible Note Agreement 3, and the PJSX Convertible Note Agreement 4 the "PJSX Convertible Note Agreements"). The PJSX Convertible Note Agreement 5 is mandatorily convertible on the date of effectiveness of this registration statement. Portland JSX Limited is entitled to receive ordinary shares in an amount calculated using a price per share equal to the applicable price per share of the initial public offering with a discount of 35%. Ordinary shares issued as a result of conversion of the PJSX Convertible Note Agreement 5 will be subject to a lock-up period of nine months counting since the date of the closing of this Offering. Merqueo intends to agree for Portland JSX Limited to receive ordinary shares at par value of U.S.$0.11232 as a result of the conversion prior to the completion of this Offering.

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On January 20, 2023, we entered into a convertible debt note agreement for U.S.$220,000 with vehicles affiliated with Portland Private Equity Group (the "Portland Convertible Note Agreement 2"). the Portland Convertible Note Agreement 2 is mandatorily convertible on the date of effectiveness of this registration statement. The vehicles affiliated with Portland Private Equity Group are entitled to receive ordinary shares in an amount calculated using a price per share equal to the applicable price per share of the initial public offering with a discount of 35%. Ordinary shares issued as a result of conversion of the Portland Convertible Note Agreement 2 will be subject to a lock-up period of nine months counting since the date of the closing of this Offering. Merqueo intends to agree for Portland Private Equity Group to receive ordinary shares at par value of U.S.$0.11232 as a result of the conversion prior to the completion of this Offering.

On January 20, 2023, we entered into a convertible debt note agreement for U.S.$500,000 with Fuel Venture Capital Flagship Fund II, LP (the "Fuel Convertible Note Agreement"). The Fuel Convertible Note Agreement is mandatorily convertible on the date of effectiveness of this registration statement. Fuel Venture Capital Flagship Fund II, LP is entitled to receive ordinary shares in an amount calculated using a price per share equal to the applicable price per share of the initial public offering with a discount of 35%. Ordinary shares issued as a result of conversion of the Fuel Convertible Note Agreement will be subject to a lock-up period of nine months counting since the date of the closing of this Offering. Merqueo intends to agree for Fuel Venture Capital Flagship Fund II, LP to receive ordinary shares at par value of U.S.$0.11232 as a result of the conversion prior to the completion of this Offering.

On January 20, 2023, we entered into a convertible debt note agreement for U.S.$19,000 with Pablo Gonzalez (the "Pablo Gonzalez Convertible Note Agreement"). The Pablo Gonzalez Convertible Note Agreement is mandatorily convertible on the date of effectiveness of this registration statement. Pablo Gonzalez is entitled to receive ordinary shares in an amount calculated using a price per share equal to the applicable price per share of the initial public offering with a discount of 35%. Ordinary shares issued as a result of conversion of the Pablo Gonzalez Convertible Note Agreement will be subject to a lock-up period of nine months counting since the date of the closing of this Offering. Merqueo intends to agree for Pablo Gonzalez to receive ordinary shares at par value of U.S.$0.11232 as a result of the conversion prior to the completion of this Offering.

On January 20, 2023, we entered into a convertible debt note agreement for U.S.$50,000 with MGM Innova Cap Management LLC (the "MGM Convertible Note Agreement", and together with the Portland Convertible Note Agreement 2, PJSX Convertible Note Agreements, the Fuel Convertible Note Agreement and the Pablo Gonzalez Convertible Note Agreement, the "Convertible Debt Notes"). The MGM Convertible Note Agreement is mandatorily convertible on the date of effectiveness of this registration statement. MGM Innova Cap Management LLC is entitled to receive ordinary shares in an amount calculated using a price per share equal to the applicable price per share of the initial public offering with a discount of 35%. Ordinary shares issued as a result of conversion of the MGM Convertible Note Agreement will be subject to a lock-up period of nine months counting since the date of the closing of this Offering. Merqueo intends to agree for MGM Innova Cap Management LLC to receive ordinary shares at par value of U.S.$0.11232 as a result of the conversion prior to the completion of this Offering.

On March 3, 2023, we entered into the Portland Convertible Note Agreement 3 for U.S.$1,500,000. This note has a termination date at the earliest of (i) the day after the date of effectiveness of this Registration Statement, or (ii) the one year anniversary of the execution of the note. If the Registration Statement is declared effective, the Portland Convertible Note Agreement 3 shall be paid by Merqueo in ordinary shares in an amount calculated with an original issue discount of 20% and using a price per share equal to the applicable price per share of the initial public offering with a discount of 35%. If payable upon the one-year anniversary, it will be paid in cash, including its principal and accrued interests of 18% effective annual rate. Merqueo intends to agree for Portland Private Equity Group to receive ordinary shares at par value of U.S.$0.11232 as a result of the conversion prior to the completion of this Offering.

*New Warrants*

On October 6, 2022, we issued the New Warrants with an expiration date of October 30, 2023, which can be exercised upon the earliest to occur of November 30, 2022, or the consummation of an initial public offering, whichever is sooner (see Management's Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources below). These warrants were later amended and restated on December 19, 2022, replacing the issuer from Merqueo S.A.S to the Company. These warrants can be exercised on any date between the date of its issuance and the day in which this Registration Statement is declared effective by the SEC, and have an expiration date of October 30, 2023.

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*Lease Liabilities*

Lease liabilities correspond to lease agreements of necessary assets of our operations (offices, warehouse assets, cold infrastructure, among others).

*Collateral Agreements*

*IDB-I Policy agreement*

In connection with the execution of the Series C Financing Round, in which IDB-I is an investor, Merqueo S.A.S. and its subsidiaries entered the IDB-I Policy Agreement on June 4, 2021, a document which reflects the values, ethics and moral standards that are fundamental to IDB-I concerning financial procedures, workforce, environmental, social and corporate governance matters. Additionally, and in connection with the IDB-I Policy Agreement, Merqueo S.A.S. entered into an option agreement with IDB-I (the "Put Option") on June 4, 2021, that will be exercisable upon a put notice by IDB-I following a Default Put Trigger Event.

The Put Option includes a standard remediation procedure after a Trigger Notice is delivered by IDB-I, following the occurrence of a Put Trigger Event, which is defined as (a) certain policy defaults defined under the policy agreement entered into with, among others, IDB-I, or (b) any action or event which could reasonably be expected to affect the reputation of IDB-I. Following a notice from IDB-I as to the occurrence of a Put Trigger Event, Merqueo S.A.S. will have a period of thirty (30) days to cure such Put Trigger Event or to provide IDB-I with a remediation plan. If such plan is not approved by IDB-I or Merqueo S.A.S fails to implement the remediation plan, a Default Put Trigger Event will occur, IDB-I may deliver a put notice, and Merqueo S.A.S will be required to purchase all of IDB-I shares in Merqueo S.A.S. (or shares held by Clean Technology Fund II in Merqueo S.A.S.) at cost. The total amount of IDB-I's investment in Merqueo is equivalent to U.S.$10 million.

*IDB-I Loan Guarantees and Collateral Agreements*

To guarantee the IDB-I Loan, on April 27, 2022, Merqueo International S.A.S., Merqueo Comércio Varejista e Intermediação de Negócios Ltda., and Merqueo S.A. de C.V. (as guarantors) entered into a Guarantee Agreement with IDB-I ("IDB-I Guarantee Agreement"). Pursuant to the IDB-I Guarantee Agreement, Merqueo International S.A.S., Merqueo Comércio Varejista e Intermediação de Negócios Ltda., and Merqueo S.A. de C.V. irrevocably, absolutely and unconditionally guarantee to IDB-I (as principal obligors and not merely as surety) the due and punctual payment of the guaranteed obligations under the IDB-I Loan Agreement when due, whether at stated maturity, upon acceleration, as a result of a mandatory prepayment event or otherwise.

Furthermore, on April 29, 2022, Merqueo S.A.S. (as pledgor) and Merqueo International S.A.S. (as issuer) entered into a first degree share pledge agreement with IDB-I ("IDB-I Share Pledge Agreement"), pursuant to which Merqueo S.A.S. pledged (i) the shares and any securities convertible into shares representing 18.2% of the total capital stock held by Merqueo S.A.S. in Merqueo International S.A.S., and (ii) any future shares of Merqueo International S.A.S. that are in any other way acquired by Merqueo S.A.S. The IDB-I Share Pledge Agreement secures the payment obligation under the IDB-I Loan Agreement. The maximum amount covered by such share pledge is the Colombian Pesos equivalent to U.S.$6 million. Merqueo S.A.S. can only exercise its voting and economic rights in respect of the pledged shares in accordance with the terms of the IDB-I Share Pledge Agreement and all pledged shares and rights cannot be transferred or sold without prior authorization of the creditor.

On April 29, 2022, Merqueo S.A.S. and Merqueo International S.A.S. (as pledgors) entered into a first degree share pledge agreement with IDB-I ("IDB-I II Share Pledge Agreement"), pursuant to which Merqueo S.A.S. and Merqueo International S.A.S. pledged (i) shares representing 18.2% of the total capital stock held by them in Merqueo Comércio Varejista e Intermediação de Negócios Ltda., (ii) any future shares that are in any other way acquired by Merqueo S.A.S. or Merqueo International S.A.S., and (iii) dividends or any amounts that may be distributed by Merqueo Comércio Varejista e Intermediação de Negócios Ltda. In relation to those shares. The IDB-I II Share Pledge Agreement secures the payment obligations under the IDB-I Loan Agreement. Merqueo S.A.S. and Merqueo International S.A.S. can only exercise their voting and economic rights in respect of the pledged shares in accordance with the terms of the IDB-I II Share Pledge Agreement and all pledged shares and rights cannot be transferred or sold without prior authorization of the creditor.

In addition, on May 11, 2022, Merqueo S.A.S. and Merqueo International S.A.S. (as pledgors) and Merqueo, S.A. de C.V. entered into a first degree share pledge agreement with IDB-I ("IDB-I III Share Pledge Agreement"), pursuant to which Merqueo S.A.S. and Merqueo International S.A.S. pledged (i) shares representing 18.2% of the total capital stock

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held by them in Merqueo S.A. de C.V., and (ii) any future shares that are in any other way acquired by Merqueo S.A.S. or Merqueo International S.A.S. The IDB-I III Share Pledge Agreement secures the payment obligations under the IDB-I Loan Agreement. Merqueo S.A.S. and Merqueo International S.A.S. can only exercise their voting and economic rights in respect of the pledged shares in accordance with the terms of the IDB-I III Share Pledge Agreement and all pledged shares and rights cannot be transferred or sold without prior authorization of the creditor. For more information, see "Management's Discussion and Analysis of Financial Condition and Results of Operations — Fundraising."

*BLAO Loan Guarantees and Collateral Agreements*

To guarantee the BLAO Loan, on April 26, 2022, Merqueo International S.A.S., Merqueo Comercio Varejista e Intermediação de Negócios Ltda., and Merqueo S.A. de C.V. (as guarantors) entered into a Guarantee Agreement with BLAO ("BLAO Guarantee Agreement"). Pursuant to the BLAO Guarantee Agreement, Merqueo International S.A.S., Merqueo S.A. de C.V., and Merqueo Comércio Varejista e Intermediação de Negócios Ltda. irrevocably, absolutely and unconditionally guarantee to BLAO (as principal obligors and not merely as surety) the due and punctual payment of the guaranteed obligations under the BLAO Loan Agreement when due, whether at stated maturity, upon acceleration, as a result of a mandatory prepayment event or otherwise. The BLAO Guarantee Agreement was later on assigned by BLAO to BLAO SICAV-SIF pursuant to the BLAO Assignment.

Furthermore, on April 27, 2022, Merqueo S.A.S. (as pledgor) and Merqueo International S.A.S. (as issuer) entered into a first degree share pledge agreement with BLAO ("BLAO Share Pledge Agreement"), pursuant to which Merqueo S.A.S. pledged (i) the shares and any securities convertible into shares representing 81.8% of the total capital stock held by Merqueo S.A.S. in Merqueo International S.A.S., and (ii) any future shares of Merqueo International S.A.S. that are any other way acquired by Merqueo S.A.S. The BLAO Share Pledge Agreement secures the payment obligation under the BLAO Loan Agreement. The maximum amount covered by such share pledge is the Colombian Pesos equivalent to U.S.$27 million. Merqueo S.A.S. can only exercise its voting and economic rights in respect of the pledged shares in accordance with the terms of the BLAO Share Pledge Agreement and all pledged shares and rights cannot be transferred or sold without prior authorization of the creditor.

Also on April 27, 2022, Merqueo S.A.S. and Merqueo International S.A.S. (as pledgors) entered into a first degree share pledge agreement with BLAO ("BLAO II Share Pledge Agreement"), pursuant to which Merqueo S.A.S. and Merqueo International S.A.S. pledged (i) shares representing 81.8% of the total capital stock held by them in Merqueo Comércio Varejista e Intermediação de Negócios Ltda., (ii) any future shares that are in any other way acquired by Merqueo S.A.S. or Merqueo International S.A.S., and (iii) dividends or any amounts that may be distributed by Merqueo Comércio Varejista e Intermediação de Negócios Ltda. In relation to those shares. The BLAO II Share Pledge Agreement secures the payment obligations under the BLAO Loan Agreement. Merqueo S.A.S. and Merqueo International S.A.S. can only exercise their voting and economic rights in respect of the pledged shares in accordance with the terms of the BLAO II Share Pledge Agreement and all pledged shares and rights cannot be transferred or sold without prior authorization of the creditor.

In addition, on May 3, 2022, Merqueo S.A.S. and Merqueo International S.A.S. (as pledgors) and Merqueo, S.A. de C.V. entered into a first degree share pledge agreement with BLAO ("BLAO III Share Pledge Agreement"), pursuant to which Merqueo S.A.S. and Merqueo International S.A.S. pledged (i) shares representing 81.8% of the total capital stock held by them in Merqueo S.A. de C.V., and (ii) any future shares that are in any other way acquired by Merqueo S.A.S. or Merqueo International S.A.S. The BLAO III Share Pledge Agreement secures the payment obligation under the BLAO Loan Agreement. Merqueo S.A.S. and Merqueo International S.A.S. can only exercise their voting and economic rights in respect of the pledged shares in accordance with the terms of the BLAO III Share Pledge Agreement and all pledged shares and rights cannot be transferred or sold without prior authorization of the creditor. For more information, see "Management's Discussion and Analysis of Financial Condition and Results of Operations — Fundraising."

On November 14, 2022, we entered into the BLAO Waiver 2, pursuant to which BLAO acknowledges that our subsidiary in Mexico ("Merqueo Mexico") is in the process of dissolution and agrees that after such dissolution and future liquidation of Merqueo Mexico shall not constitute an event of default under the BLAO Loan Agreement. Pursuant to the BLAO Waiver 2, we agreed to grant a first priority lien over some trademarks owned by Merqueo S.A.S., within the 18 months following the execution of the BLAO Waiver 2.

Pursuant to the BLAO Assignment, the BLAO Share Pledge Agreement and the BLAO Share Pledge Agreement II have been amended in order to reflect BLAO SICAV-SIF as beneficiary of such guarantees.

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#### Capital Expenditures
Capital expenditures are composed mostly of payments for the development of intangible assets and the purchase and sale of property and equipment. Even though Merqueo is a light assets company, it is necessary to invest in some operational assets of the day-to-day business in our warehouses. Additionally, Merqueo has capital expenditures related to the software development, which is necessary in order to have a performing online service. For purposes of the development of our intangible assets (software), all of our development team is based in Colombia. We do not have software development expenditures in Brazil. Capital expenditures are financed with capital contributions from, or debt instruments entered into with, our investors.

For the year ended December 31, 2022, capital expenditures amounted to a net outflow of COP $7,734,819 thousand, of which (i) the impairment of intangible assets resulted in a net outflow of COP $3,667,608 thousand, (ii) the purchase and sale of property and equipment resulted in a net outflow of COP $3,491,405 thousand, and (iii) the sale of property, plant, and equipment in discontinued operations resulted in a net outflow of COP $575,806.

For the year ended December 31, 2021, capital expenditures amounted to a net outflow of COP $10,715,965 thousand, of which (i) the development and disposal of intangible assets resulted in a net outflow of COP $7,082,932 thousand, (ii) the purchase and sale of property and equipment resulted in a net outflow of COP $2,492,007 thousand, and (iii) the sale of property, plant, and equipment in discontinued operations resulted in a net outflow of COP $1,141,026.

#### Off-Balance Sheet Arrangements
We did not have any off-balance sheet arrangements as of December 31, 2022, and December 31, 2021.

#### JOBS Act
We are an "emerging growth company," as defined in Section 2(a) of the Securities Act, as modified by the JOBS Act. As such, we will be eligible to take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not "emerging growth companies", and may not be required to, among other things, (1) provide an auditor's attestation report on its system of internal controls over financial reporting pursuant to Section 404, (2) provide all of the compensation disclosure that may be required of non-emerging growth public companies under the Dodd-Frank Wall Street Reform and Consumer Protection Act, (3) comply with any requirement that may be adopted by the PCAOB regarding mandatory audit firm rotation or a supplement to the auditor's report providing additional information about the audit and the financial statements (auditor discussion and analysis), and (4) disclose certain executive compensation related items such as the correlation between executive compensation and performance and comparisons of the CEO's compensation to median employee compensation. If some investors find our securities less attractive as a result, there may be a less active trading market for our securities and the prices of such securities may be more volatile.

These exemptions will apply for a period of five years following the completion of our initial public offering or until we are no longer an "emerging growth company," whichever is earlier.

#### Material Weaknesses in Internal Controls
We have identified material weaknesses associated with the internal controls over our financial reporting associated with the lack of controls over our financial close process and insufficient number of personnel resulting in the reliance on external advisors, as we are in the process of designing and implementing an effective internal control environment.

We are not currently required to maintain an effective system of internal controls as defined by Section 404 of the Sarbanes-Oxley Act. We will be required to comply with the internal control requirements of the Sarbanes-Oxley Act for the fiscal year ending December 31, 2023. Only in the event that we are deemed to be a large accelerated filer or an accelerated filer and no longer an emerging growth company would we be required to comply with the independent registered public accounting firm attestation requirement. Further, for as long as we remain an emerging growth company as defined in the JOBS Act, we intend to take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the independent registered public accounting firm attestation requirement.

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#### Quantitative and Qualitative Disclosure About Market Risk
Our activities expose us to a variety of financial risks: market risk (including currency risk and interest rate risk), credit risk and liquidity risk.

Our overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the financial performance of the Company. We constantly analyze the impact of financial risk in order to determine the representative changes that can gradually affect it and thereby mitigate the risks of exchange rates and interest rates.

Management reviews and approves the policies to manage each of the risks.

*<u>Capital management</u>*

The objectives of capital management are to safeguard the Company's ability to continue as a going concern, so that it can continue to provide returns for shareholders, as well as to maintain an optimal capital structure to reduce the cost of capital and maximize those returns.

We are in the process of obtaining funds by the issuance of our shares to strategic investors, as well as bank financing and lease agreements for our warehouses.

#### Financial instruments by category
As of December 31, 2022 and December 31, 2021, financial assets and liabilities consist of the following (in thousands of Colombian pesos (COP$):

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| | | | |
|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2021** | **2022** | **2022** |
|  | **(in COP$ Thousands)** | **(in COP$ Thousands)** | **(U.S.$)<sup>(1)</sup>** |
|  Cash and cash equivalents | 8670873 | 4418060 | 918477 |
|  **Financial assets measured at amortized cost:** |  |  |  |
|  Trade and other accounts receivable | 6215620 | 3937148 | 818500 |
|  Other financial assets | 335788 | 619331 | 128754 |
|  **Total financial assets** | **15222281** | **8974539** | **1865731** |
|  **Financial liabilities measured at amortized cost:** |  |  |  |
|  Related party accounts payable (See note 17) | 5609999 | 32169787 | 6687827 |
|  Suppliers and other payables | 50436129 | 27902823 | 5800762 |
|  Interest-bearing loans and borrowings | 7946568 | 109518683 | 22768010 |
|  Lease liabilities | 20044938 | 9867647 | 2051401 |
|  **Total financial liabilities** | **84037634** | 179458940 | 37308000 |
|  **Net financial liability exposure** | **(68815353)** | **(170484401)** | **(35442269)** |

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(1) For convenience purposes only, amounts in U.S.$ have been translated to U.S. dollars using an exchange rate of $4,810.20 to U.S.$1.00, which corresponds to the *tasa representativa del mercado* ("representative market rate") as of December 31, 2022, as reported by Colombia's *Banco de la República*. These translations should not be considered representations that any such amounts have been, could have been or could be converted at that or any other exchange rate. See "Risk Factors — Inflation and certain government measures to curb inflation may have adverse effects on the economies of the countries where we operate, our business and our operations."

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#### Fair value of financial assets and liabilities measured at amortized cost
The amount of cash and cash equivalents, trade and other accounts receivable and suppliers and other payables, approximate their fair value due to their short-term maturity. The net carrying amount of these accounts represents the expected cash flows to be received as of December 31, 2022 and December 31, 2021.

In addition, the carrying amount and estimated fair value of the liabilities measured at amortized costs are as follows (in thousands of Colombian pesos (COP$) and U.S. dollars (U.S.$) as of December 31, 2022, December 31, 2021, as a translation of Colombian pesos amounts into dollars at specified rates solely for convenience purposes):

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Carrying<br>amount** | **Fair <br>value** | **Carrying<br>amount** | **Fair<br>value** | **Carrying<br>amount** | **Fair<br>value** |
|  | **(COP$ Thousands)** | **(COP$ Thousands)** | **(COP$ Thousands)** | **(COP$ Thousands)** | **(U.S.$)** | **(U.S.$)** |
|  Interest-bearing loans and borrowings | 7946568 | 7905855 | 109518683 | 103599280 | 22768010 | 21537416 |

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____________

(1) For convenience purposes only, amounts in U.S.$ have been translated to U.S. dollars using an exchange rate of $4,810.20 to U.S.$1.00, which corresponds to the *tasa representativa del mercado* ("representative market rate") as of December 31, 2022, as reported by Colombia's *Banco de la República*. These translations should not be considered representations that any such amounts have been, could have been or could be converted at that or any other exchange rate. See "Risk Factors — Inflation and certain government measures to curb inflation may have adverse effects on the economies of the countries where we operate, our business and our operations."

The estimated fair value of the interest-bearing loans and borrowings as of December 31, 2022 and December 31, 2021 was determined based on the discounted cash flows, using a Colombian credit spread, which reflects a similar credit risk in Colombian pesos. The fair value measurement of the interest-bearing loans and borrowings is considered within the Level 2 of the fair value hierarchy.

Long-term fixed-rate and variable-rate interest-bearing loans and borrowings are evaluated by the Company based on parameters such as interest rates, specific country risk factors, and the risk characteristics of the financed project.

As of December 31, 2022 and December 31, 2021, there were no transfers between the levels of the fair value hierarchy.

<u>**<u>Market risks</u>**</u>

Financial instruments affected by market risk include cash, suppliers, interest-bearing loans and borrowings and credit cards.

The sensitivity analyses in the following sections relate to the position as of December 31, 2022 and December 31 in 2021, and have been prepared based on the assumption that the sensitivity of the relevant statement of profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held as of December 31, 2022 and December 31, 2021.

**1. Exchange rate risk**

We have operations in Colombia, Mexico (discontinued operations) and Brazil and are exposed to exchange rate changes, mainly derived from transactions and balances conducted and held in U.S. dollars by the Colombian entity and its subsidiaries.

Changes in the exchange rates between the functional currency of the Company and the U.S. dollar represents a significant factor for the Parent and its subsidiaries due to the effect that such currencies have on its financial results and because we have no control in their determination.

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We maintain the following financial assets and liabilities denominated in U.S. dollars in relation to the functional currency of the Parent and its respective subsidiaries, translated to thousands of Colombian pesos at the closing exchange rate as of December 31, 2022, and December 31, 2021:

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| | | | |
|:---|:---|:---|:---|
|  | **December 31, <br>2021** | **December 31, <br>2022** | **December 31, <br>2022** |
|  | **USD** | **USD** | **USD** |
|  Financial assets | 519,638 | 134,478 |  |
|  Financial liabilities | 56,734 | 28,957,790 |  |
|  **Foreign exchange financial position, net** | **462,904** | **(28,823,312** | **)** |

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The exchange rate used to translate financial positions in U.S. dollars to Colombian pesos is as of December 31, 2022 — COP $4,810.20. Based on the financial positions in foreign currency maintained by the Company, a hypothetical variation of 10% in the COP/U.S. exchange rate and keeping all other variables constant, would result in a pre-tax effect of COP $13,864,590 and COP $184,289, in the consolidated statement of income and stockholders' equity, as of December 31, 2022 and December 31, 2021, respectively.

**2. Interest risk rate**

We are exposed to interest rate risk mainly due to interest-bearing loans and borrowings held at variable rates. On the other hand, fixed-interest loans expose us to interest rate risk at fair value, which reflects that we might be paying interests at rates significantly different from those of an observable market. As of December 31, 2022, 5% of the financing are denominated at a fixed rate and 95% at a variable rate.

As of December 31, 2021 and 2022, if interest rates on variable rate loans are increased or decreased by 100 basis points in relation to the rate in effect, the financial expense in profit and loss and to stockholders' equity of the Company would change by COP $74,123 thousand and COP $1,092,786 thousand, respectively.

The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable market environment.

*<u>*<u>Credit risk</u>*</u>*

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Company.

As of December 31, 2021 and 2022, we did not have any customer which represented more than 10% of outstanding receivables.

An impairment analysis is performed at each reporting date using a provision matrix to measure expected credit losses. The provision rates are based on days past due for customers segments with similar loss patterns, which are receivables from delivery service representatives of the Company and receivables from clients. The calculation reflects the probability-weighted outcome, the time value of money and reasonable and supportable information that is available at the reporting date about past events, current conditions and forecasts of future economic conditions. Generally, trade receivables are written-off if past due for more than seven months and are not subject to enforcement activity. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 30.3.

During the years ended December 31, 2021 and 2022, the credit limits were not exceeded and there have been no changes in estimation techniques or assumptions. Information about the credit risk exposure on the Company's trade and other receivables is described using a provision matrix in Note 7.3.

*<u>*<u>Liquidity risk</u>*</u>*

Cash flows projections are prepared at each operating entity of the Company and, subsequently, the finance area consolidates this information. Our finance area continuously monitors the cash flow projections and liquidity requirements of the Company ensuring there is a proper level of cash and equivalents to meet operational needs. We monitor regularly and makes its decisions considering not violating the limits or covenants established in our debt

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contracts, however, we cannot project with certainty that we will meet all future covenant obligations. The projections consider our financing plans and, as far as practicable, compliance with covenants, compliance with internal minimum liquidity ratios and legal or regulatory requirements.

The following table details our financial liabilities grouped according to their maturity, from the reporting date to the contractual maturity date. The amounts disclosed are contractual undiscounted cash flows; therefore, they differ from the amounts included in the consolidated statements of financial position in thousands of Colombian Pesos (COP$) and US dollars (U.S.$) for the year ended December 31, 2022, as a translation of Colombian pesos amounts into dollars at specified rates solely for convenience purposes.

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| | | | |
|:---|:---|:---|:---|
|  | **Less than <br>1 year** | **Between 1 <br>and 5 years** | **Over 5 years** |
|  | **(in COP$ Thousands)** | **(in COP$ Thousands)** | **(in COP$ Thousands)** |
|  **As of December 31, 2022** |  |  |  |
|  Interest-bearing loans and borrowings | 9169123 | 66755548 | 33594012 |
|  Suppliers and other payables | 29285855 |  |  |
|  Accounts payable to related parties | 28258254 | 3911533 |  |
|  Lease liabilities | 4230219 | 5637428 |  |
|  Non-accrued future interests | 14881656 | 42498693 | 4260011 |
|  **As of December 31, 2021** |  |  |  |
|  Interest-bearing loans and borrowings | 6667981 | 1278587 |  |
|  Suppliers and other payables | 51542661 |  |  |
|  Accounts payable to related parties | 982875 | 4627124 |  |
|  Lease liabilities | 5766400 | 14278538 |  |
|  Non-accrued future interests | 639357 | 77904 |  |

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We expect to be able to pay our obligations related to our financial obligations that are due within one year as of December 31, 2022 with cash flows from our operations. On December 20, 2022, pursuant to Amendment No. 1 and Undertaking Agreement we obtained a limited waiver from IDB-I related to the following defaults on covenants under the IDB-I Loan Agreement: (i) our obligation to establish a succession plan for individuals to assume relevant internal positions for our operations, (ii) our obligation to deliver within 45 days after each financial quarter a certificate of an authorized representative including an explanation of the key operating variables and calculations in reasonable detail demonstrating compliance with the financial covenants under the IDB-I Loan Agreement, or detailing any non-compliance, and (iii) our obligation to provide, after each financial quarter, the management statements and presentations delivered to the board of directors showing our and our subsidiaries' financial performance. Pursuant to the Amendment No. 1 and Undertaking Agreement (as defined below), we are required to comply with such obligations no later than June 30, 2023. As of the date hereof, we have complied with our obligation to establish a succession plan. Given that the remaining obligations are within our control and are not based on financial metrics we need to maintain, we expect to be able to comply with the pending requirements by June 30, 2023, and have therefore presented such outstanding loan as non-current as of December 31, 2022.

As we are yet to obtain profitability, we currently rely on additional funding from our investors and creditors to maintain sufficient cash flows to maintain our operational viability. We are planning to raise funds through an initial public offering and continued follow-ons, in addition to other plans to become profitable through organic and inorganic growth. However, based on the projected outflows of the Company, management and the Board of Directors have determined that we do not have sufficient existing cash to maintain our operations over the subsequent 12 months from the issuance of the consolidated financial statements for December 31, 2022 without obtaining additional funding.

*<u>*<u>Fair value hierarchy</u>*</u>*

Fair value is defined as the price that would be received to sell an asset or the price paid to transfer a liability in an orderly transaction between market participants at the measurement date.

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Fair value measurements are made using a fair value hierarchy that reflects the importance of the inputs used in determining the measurements.

The 3 different levels used are presented below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1: Quoted prices for identical instruments in active markets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2: Other valuations including quoted prices for similar instruments in active markets that are directly or indirectly observable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3: Valuations made through techniques in which one or more of the significant data are not observable.

As of December 31, 2022, we have issued warrant agreements that meet the definition of equity financial instrument financial instruments, which are measured at fair value in accordance with IFRS 2 — Share based payments. As of December 31, 2021 and 2022, we do not maintain financial instruments measured at fair value.

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#### Business
*Overview*

We are Latin America's first vertically-integrated digital grocery retailer with operations in both Colombia and Brazil, allowing our customers to save time and money on groceries. We define a vertically-integrated digital grocery retailer as a full-stack ecosystem which has end-to-end integrated operations, allowing for full control of the value chain. We deliver high-quality, low-priced products by negotiating directly with suppliers. We offer our customers an unparalleled shopping experience by using technology to optimize procurement and fulfillment in our warehouses, and by delivering directly to their doors.

Our proprietary technology is the foundation that connects all aspects of our operations in real time and provides us an edge with demand forecasting, inventory management, AI-driven productivity, and user acquisition and retention. Our proven operating model results in our continuous ability to lower distribution and logistics costs, unlock higher margins, and offer our customers cost-effective service-excellence. On December 31, 2022, we had 29 private label brands offering a total of 234 active products. These private label products offer our customers top-quality products at extremely competitive prices, while giving us up to an additional 7% in gross margin as compared to CPG brands. We save our customers time and money on groceries, and we do it every day with a relentless focus on scalability and profit, delivering more than 5.5 million orders through our full-stack model.

We were founded in 2015 by entrepreneurs with deep domain experience in the food delivery industry who recognized the massive untapped market potential of digital grocery retail in big and densely populated cities in Latin America. We commenced our operations with one warehouse in Bogotá, Colombia and one warehouse in Medellin, Colombia. Since our inception, we have worked to become leaders in our industry with the help of our strong technology, operational excellence, and market positioning.

Through our mobile apps (iOS and Android) customers can satisfy grocery stock up and fill-in shopping missions while saving time and money. Customers no longer have to go to a physical store and are able to benefit from our full-stack ecosystem to pay less for the household products that they use and love. We offer everything from fresh produce to frozen products, and from house cleaning and personal hygiene to meat and dairy. In countries where cash remains a major form of payment, we offer a wide variety of payment options including cash, online payment, credit and debit card payment upon receipt, and digital wallets, amongst others.

*Intuitive and easy-to-use customer experience*

![](timage_002.jpg)

Our belief in this significant business opportunity stems from our firm conviction that groceries will always represent a significant percentage of monthly household expenses for Latin American families. As a result, we expect that offering consistently low prices and a reliable and convenient shopping experience will attract and retain loyal customers.

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We focus on doing this with a "path to profitability" strategy by (1) maximizing efficiency of customer acquisition and retention with AI-powered pricing and promotions, and a customer classification system to target high-value users, (2) using a data-driven approach for portfolio selection and pricing strategy to improve gross margin, (3) leveraging our technology and relentless operational excellence to maximize procurement and fulfillment efficiency per warehouse, and (4) continuously improving our technology to offer best-in-class customer experience and impact top and bottom lines.

The unprecedented events of the COVID-19 pandemic posed challenges for retailers worldwide, but allowed us to confirm user adoption of our service and to test our technology and operating capacity in a high-growth environment. Through the strict lockdown period in 2020 we reached 90% of warehouse utilization which led to our lowest historical distribution and logistics costs while maintaining excellent service indicators (on time above 90% and fill rate above 98%). We have stress-tested our technology and our operations, and both exceeded expectations.

As mentioned above, we have operations in both Colombia and Brazil. Colombia is the country where we have operated for the longest period of time. Our operations in Colombia reflect stronger operational, commercial, and financial metrics. Brazil, on the other hand, is where we aim to gain a larger market share.

We believe that our business is difficult to replicate and poses barriers to entry based on the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Our integrated technology connects all of our operations in real-time, allowing us to collect useful data, optimize every step, and have superior control over quality and customer experience.

![](timage_003.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Strong and lasting relationships with local and international suppliers allow us to access better pricing and new business opportunities. In Colombia, as of December 2022, we had approximately 2,400 SKU portfolio, we had 135 suppliers, 100% of which we negotiate with directly. In Brazil, for an approximately 2,300 portfolio, we had 154 suppliers and are working towards 100% direct negotiation with suppliers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Our optimal warehouse layout and processes have improved over time and work in sync with our specialized technology to enable high inventory turnover, timely deliveries, access to low-cost real estate, and artificial intelligence-driven operation that drives productivity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Inventory turnover: In Colombia, our inventory turnover during the year ended 2021 and 2022 was, on average, consistently below the 30-40 days metric of traditional retail. In 2021, our inventory turnover in Colombia was 19.0 days on average. In 2022, our inventory turnover in Colombia was (i) in the first quarter, 13.6 days on average, (ii) in the second quarter, 16.6 days on average, (iii) in the third quarter, 21.5 days on average, and (iv) in the fourth quarter, 21 days on average. In Brazil, our inventory turnover was: (i) in 2021, 61.6 days on average, (ii) in the first quarter of 2022, 32.9 days on average, (iii) in the second quarter, 31.7 days on average, (iv) in the third quarter of 2022, 25.2 days on average, and (v) in the fourth quarter of 2022, 19.9 days on average.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On-time delivery: During the year ended December 31, 2022, our on-time delivery was 88.8% on average in Colombia and 87.2% in Brazil.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Items picked per hour by one picker: In Colombia, we have seen the number of items picked per hour by one picker improve over time. In the fourth quarter of 2019, one picker picked up to 50 items per hour (per hour dedicated exclusively to picking) on average. In the second quarter of 2020, one picker picked up to 144 items per hour on average (per hour dedicated exclusively to picking). In 2022, the number of items picked per hour by one picker (per hour dedicated exclusively to picking) was (i) in the first quarter of 2022, 179 items, (ii) in the second quarter, 173 items, (iii) in the third quarter, 270 items, and (iv) in the fourth quarter, 245 items. In Brazil, we also have high picking productivity numbers (per hour dedicated exclusively to picking): (i) in the first quarter of 2022, 191 items, (ii) in the second quarter, 232 items, (iii) in the third quarter, 149 items, and (iv) in the fourth quarter, 162 items picked per hour by one picker on average. In both countries, we have reached a productivity above the global industry benchmark set by Ocado of 175, according to Ocado's Full Year 2022 Results. This positive evolution has been achieved by upgrading our picking app, decreasing picker movements, daily productivity tracking, and implementation of best practices, optimizing our picking cost.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. A robust private label portfolio that supports our brand positioning as having high-quality products at low prices. This further drives loyalty and positive customer behavior, as well as improving our financial results. During December 2022, buyers of our private label brands bought up to 111% more items and spend up to 72% more per order when compared to other buyers. During December 2022, 64% of total orders had at least one private label product.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. An outsourced but dedicated fleet that uses our in-house last-mile delivery app for route batching and optimization. In Colombia, we have seen the number of orders per hour per van driver improve over time. In 2021, we delivered 2.5 orders per hour per driver on average. In 2022, the number of orders per hour per driver was (i) in the first quarter of 2022, 2.1 on average, (ii) in the second quarter of 2022, 2.6 orders on average, (iii) in the third quarter of 2022, 3.2 orders on average, and (iv) in the fourth quarter of 2022, 3.3 on average. This is above the global industry benchmark set by Ocado of 3.14 (equivalent to 176 orders per week per drive assuming 8 hour shifts and 7 work days), based on Ocado's Full Year 2022 Results. In Brazil, the number of orders per hour per van driver in 2021 was 2.1 on average. In 2022, the number of orders per hour per driver in Brazil was (i) in the first quarter of 2022, 2.4 on average, (ii) in the second quarter of 2022, 2.6 orders on average, (iii) in the third quarter of 2022, 2.5 orders on average, and (iv) in the fourth quarter of 2022, 2.8 on average.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. An ads and data platform that enables consumer packaged goods ("CPG") brands to better target ads, creating purchase intent and improving customer conversion cycle. As transactions in our platform increase, the quality and value to CPGs of our data increases, generating a long-term cash flow generator. We have been building and improving our data and ads platform over the past years, resulting in tools such as embedded video, and have developed state-of-the-art tools for CPGs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. A proven flywheel coupled with our years of experience controlling the levers that provide momentum for long-term sustainable growth.

![](timage_004.jpg)

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During the year ended December 31, 2022 and as a response to the rapid increase in inflation derived from previous government measures designed to boost economies, countries have rapidly increased interest rates and therefore the cost of money, which has translated into an increase in credit prices. Companies like Merqueo, which require funding to carry out their operations, have been affected. As a result, in 2022 we shifted our focus from exponential topline growth as a main priority, to organic growth with laser focus on profitability by minimizing cash burn, maintaining sources of employment and building long-term sustainability. As such, in 2022, we decided to (1) close down our operations in Mexico, (2) discontinue our ultra-fast (quick commerce) and marketplace operations, which negatively impacted our unit economics in the short and medium term, (3) curated our portfolio from 7,000 SKU count to up to 3,000, which covers the need for a full grocery basket and improves working capital and cash flow by reducing low turnover products, and (4) reducing selling, general and administrative (SG&A) and operating expenses via team reduction and closing of warehouses that did not have an immediate path to profitability. To implement our change in strategy we made a change in leadership, with Felipe Ossa Rodriguez taking over as Chief Executive Officer as of August 2022.

Our change in strategy is reflected in an improvement over the course of 2022 in (1) Adjusted Gross Profit as a percentage of net revenue and (2) Distribution and Logistics Cost excluding administrative employees supporting selling activities as a percentage of net revenue, evidencing a positive trend towards profitability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In Colombia, in 2022, Adjusted Gross Profit as a percentage of net revenue was (i) in the first quarter, 9%, (ii) in the second quarter, 12%, (iii) in the third quarter, 12%, and (iv) in the fourth quarter, 17%. In Brazil, in 2022, Adjusted Gross Profit as a percentage of net revenue was (i) in the first quarter, (11)%, (ii) in the second quarter, (15%), (ii) in the third quarter, (2)%, and (iii) in the fourth quarter, 0%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In Colombia, in 2022, Distribution and Logistics Cost excluding administrative employees supporting selling activities as a percentage of net revenue was (i) in the first quarter, 30%, (ii) in the second quarter, 31%, (iii) in the third quarter, 53%, and (iv) in the fourth quarter, 22%. In Brazil in 2022, Distribution and Logistics Cost excluding administrative employees supporting selling activities as a percentage of net revenue was (i) in the first quarter, 89%, (ii) in the second quarter, 94%, (iii) in the third quarter, 52%, and (iv) in the fourth quarter, 43%.

*Market Opportunity*

![](timage_001.jpg)

Latin America's e-commerce market is evolving rapidly and increasing numbers of individuals are making purchases on the internet. According to the Institute of Grocery Distribution (IGD), in 2022 the online channel's share in Latin America's grocery market was 1.7%, equivalent to U.S.$7.3 billion. Based on the IGD projections, by 2027 the online channel's share in Latin America's grocery market will be 2.6% (U.S.$15.4 billion), 9.4% (U.S.$437.7 billion) in Asia, and 8.0% (U.S.$163.4 billion) in North America. This growth corresponds to a 15.9% CAGR (2022-2027) for Latin America, above North America (10.2%) and Asia (8.3%).

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We believe factors contributing to the future growth in this industry segment in Latin America may include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• High internet penetration (Colombia 70% and Brazil 81%), above the world average (62%) and countries such as China and India (69% and 47% respectively);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Increased access of smartphone adoption (from 55% in 2016 to 77% in 2021);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• High daily time spent on internet (Colombia 10 hours and Brazil 10.3 hours), above countries such as United States and China (7 hours and 5.3 hours, respectively);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Rapid growth of the e-commerce channel penetration in retail (from 1% in 2010 to 11% in 2021, with an expected 18% penetration in 2025);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the COVID-19 pandemic;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increased security protection, including telecommunications networks and systems, which has helped promote consumer confidence; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• availability of advanced electronic or other payment systems, including credit card, bank transfer and mobile banking systems.

Additionally, groceries represent a non-discretionary consumer industry, as food is a basic household need. In Colombia, according to Raddar, since 2020, food and beverage is the first monthly household expenditure, before house rental and transportation.

*Full-Stack Grocery Delivery Services*

Our full-stack model enables end-to-end superior control over quality, customer experience, and operational margins.

![](timage_005.jpg)

We negotiate and purchase inventory directly from CPG brands, manufacturers, and local farmers. We have invested significant time developing deep relationships and favorable commercial agreements with more than one hundred suppliers. Our negotiations include credit terms, rebates, product discounts, delivery model and product prices. We use our proprietary technology, including our AI-powered forecasting module, to estimate the demand of each product and increase purchase accuracy. Our model tells us what to buy, how much to buy, when to buy it, and where we need it. In 2022, in Colombia, our inventory turnover was 18.2 days on average. By optimizing working capital in this way, we are able to consistently offer more than 95% of our portfolio to users and ensure that our perishable products reach our customers while they are still fresh.

Once we send the purchase orders, our suppliers deliver the inventory to one of our leased warehouses, which we classify into one of two different types: medium warehouses that measure 2,000 to 3,000 meters and large warehouses that measure 4,000 to 5,000 meters. After the incoming product is received and scanned, it is uploaded in real time to our warehouse management system ("WMS"), which immediately updates availability of stock for our users to purchase in our app. In this way, we only display the products that are available to our customers at the time of the purchase, achieving fill rate levels of up to 99.7% in Colombia and 98% in Brazil on average during 2022.

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After receiving the products, these are transferred to our storage shelves, where they are organized and sorted according to categories and turnover. In order to make individual products available for picking, these are transferred from the storage to the picking area using in-house technology that prioritizes products according to forecasting and real time demand. The picking area is distributed in several floors according to the turnover of the product, which allows for a wider portfolio capacity, increased picking speed, and a better use of space. Through new developments and enhancement of our picking app, optimization of picking areas (reducing long displacements for pickers), and continuous improvements in planning, throughout the years we have been able to improve our picking in Colombia during the last quarter of 2022, from a rate of 50 items per hour per picker (per hour dedicated exclusively to picking) to 245 items per hour per picker on average, which is above the global industry benchmark set by Ocado of 175, according to Ocado's Full Year 2022 Results. Additionally, our technology-based operated warehouses allowed us to decrease shrinkage as a percentage of net revenue over time. Shrinkage is the loss of inventory that can be attributed to two main factors: (1) reduction resulting from day-to-day operations (e.g., products expiration due to low turnover, wrong product handling, among others, and (2) unknown reduction, which corresponds to differences between physical inventory and the inventory registered in our internal system). In Colombia, shrinkage as a percentage of net revenue was 2.0% in 2021. In 2022, shrinkage as a percentage of net revenue represented (i) in the first quarter, 2.0%, (ii) in the second quarter, 2.0%, (iii) in the third quarter, 3.0%, and (iv) in the fourth quarter, 2.0%. In Brazil, shrinkage as a percentage of net revenue represented (i) in the first quarter of 2022, 7.0%, (ii) in the second quarter, 4.0%, (iii) in the third quarter, 5.0%, and (iv) in the fourth quarter, 1.0%.

We have developed software (our "Last Mile App") to guide the driver throughout the route and delivery process. Once a van is packed and ready to go, the app will show the next three orders to be delivered, and the most optimized route based on Google Maps or Waze. At the same time, the customer can track in real time where the driver is. Our Last Mile App collects valuable data such as orders delivered on-time, any issues encountered along the way, and the amount of cash collected by the driver which must be deposited, among other things. In this way, we ensure the correct management of our orders to achieve the highest level of visibility, traceability and customer satisfaction. In Colombia, by batching orders, we have been able to minimize delivery cost per order as low as U.S.$1.8 by the end of December 2022 (compared to U.S.$2.2 of cost per individual delivered orders). During the fourth quarter of 2022, in scheduled routes of more than three hours, we delivered in Colombia 3.3 orders per hour per driver on average, which is above the global industry benchmark set by Ocado of 3.14 (equivalent to 176 orders per week per drive assuming 8 hour shifts and 7 work days), based on Ocado's Full Year 2022 Results. In Brazil, during this period, we delivered 2.8 orders per hour per driver on average. These efficiencies resulted in the evolution of the delivery cost as a percentage of net revenue in Colombia over time. In 2021, the delivery cost as a percentage of net revenue represented 9%. In 2022, delivery cost as a percentage of net revenue represented (i) in the first quarter, 12%, (ii) in the second quarter, 11%, (iii) in the third quarter, 9%, and (iv) in the fourth quarter, 7%. In Brazil, in 2022, the delivery cost as a percentage of net revenue represented: (i) in the first quarter, 31%, (ii) in the second quarter, 25%, (iii) in the third quarter, 15%, and (iv) in the fourth quarter, 16%. Finally, our integrated in-house platform allows our dedicated customer service team to monitor every step, in real-time.

We use outsourced delivery fleets. By the end of December 2022, in Colombia, 36% of the total delivery trucks are from outsourcing companies and 64% are truck owners who either drive the deliveries themselves or hire another driver. In all cases, truck drivers are responsible for all costs related to the truck, such as maintenance and taxes. We pay the drivers every 15 days for the delivered orders during the period. The contracts last approximately one year with automatic renewal unless one of the parties terminates it with one month's notice. With this contractual system the Company is able to successfully deliver all customer orders while managing distribution and logistics costs.

Our scheduled delivery option is tailored for families and larger households and aims to replace the weekly supermarket shop with a convenient delivery of groceries at a time the customer elects. Scheduled delivery orders can be made as many as four days in advance and as few as three hours ahead of the customer's desired delivery time. They are available to customers within an approximate 12-kilometer radius of a warehouse, at approximately U.S.$1.1 in both Colombia and Brazil. Scheduled deliveries accounted for 85% and 87% of our total orders in Colombia and Brazil during the year ended December 31, 2021, respectively. By December 31, 2022, 100% of orders were scheduled deliveries in both countries.

As of December 31, 2022, we had four warehouses in Colombia and one in Brazil. Although we have five separate properties with independent lease agreements, as detailed below, we operate two of the properties as a single warehouse. Therefore, we have four warehouses in Colombia and one in Brazil. Our lease agreements have standard termination clauses related with common practice in Colombia and Brazil. They may vary according to particular

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circumstances but all lease agreements include an early termination clause with (i) a prior notice between 30 and 90 calendar days and (ii) the payment of a penalty between one and three months of rent. In the majority of cases, these lease agreements have annual automatic renewal clauses. We intend to focus on increased profitability in the current markets in which we operate, rather than aggressively expanding our warehouse network.

A break-down of the number and locations of our warehouses as of December 31, 2022 is as follows:

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| | | |
|:---|:---|:---|
|  | **Colombia** | **Brazil** |
|  Cities/Municipalities | 17 | 12 |
|  Warehouses | 4 | 1 |

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Details of the terms of such leases are the following:

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| | | |
|:---|:---|:---|
|  **City** | **Initiation date** | **Expiration date** |
|  Bogota | September 15, 2019 | February 14, 2024 |
|  Bogota | August 1, 2021 | February 29, 2024 |
|  Bogota | March 20, 2019 | March 19, 2024 |
|  Bogota | June 1, 2020 | August 31, 2023 |
|  Medellin | June 1, 2020 | June 1, 2023 |
|  Sao Paulo | April 1, 2021 | March 31, 2024 |

---

From these five warehouses, with a total of 137,170 square feet, we can currently sell up to U.S.$67.2 million on a yearly basis. This figure is calculated based on a combination of historical data and our estimated efficiency gains from operational improvements based on our technology.

Below is a map of our operations as of the date of this prospectus:

![](timage_006.jpg)

For the year ended December 31, 2022, our net revenue was COP $133,906,761 thousand (U.S.$27,838,086), a decrease of 35% from COP $205,600,950 thousand (U.S.$42,742,703) for the year ended December 31, 2021.

Our revenue decrease was mainly driven by the decrease in our customer base, mainly active users that have made orders on the platform in Colombia. In this country, for the year ended December 31, 2022, we had 51,139 monthly active users ("MAUs") on average, as compared with 90,568 MAUs in 2021. In Brazil, on the other hand, we had an increase in MAUs. For the year ended on December 31, 2022, we had 9,088 MAUs on average compared to 5,012 MAUs on average during 2021.

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One way in which we measure customer experience is by measuring fill rate. Our average fill rate score for the year ended December 31, 2022 in Colombia was 99.7%, which remained constant compared to 99.7% order fill rate for the year ended December 31, 2021. In Brazil, for the year ended December 31, 2022, the average fill rate was 98%, a decreased compared to 99.3% for the year ended December 31, 2021. We are able to consistently offer this high fill-rate as a result of our in-house build WMS. See "Full-Stack Grocery Delivery Services."

*Technology as our Foundation*

Technology has always been and continues to be at the heart of Merqueo. We design, develop, and operate most of our software and technology in-house, including (1) user facing mobile apps (iOS and Android), (2) fulfillment center technology (including our picking app, fulfillment center app, and inter-warehouse inventory movement app), (3) last-mile delivery app, and (4) customer service and live operations platforms. See "Full-Stack Grocery Delivery Services'" for a detailed narrative of our technology applied to our business.

Because the industries in which we operate are characterized by rapid technological advances, our ability to compete successfully has always been driven by our ability to continually access and reliably offer our customers services using the latest and most advanced technology.

Our user-facing platform is a fully-automated, topically-arranged and user-friendly mobile app. It is a highly scalable platform that provides users with a convenient, safe, and trusted shopping environment. This platform enables us to list merchandise and transact with our customers while allowing customers to shop and schedule deliveries digitally. Our grocery platform has an ample assortment of products spanning the full spectrum of grocery needs. From 2019 to 2022, we had 4.5 million downloads of our user-facing apps, including downloads from our mobile apps (iOS and Android).

We continue to develop new technologies to enhance our existing e-commerce platform and to expand the functionality and ease of use of our customer facing interface. We also make significant investment in maximizing the utility, accuracy, and scope of proprietary applications utilized by employees in our warehouses and our delivery personnel. We strive to maintain the right balance between offering new features and enhancing the existing functionality and architecture of our software and hardware. Because our business has grown relatively fast, we must ensure that our systems are capable of absorbing this incremental volume. Our engineers work to optimize our processes and equipment by continuously designing more effective ways to run our platform.

As of December 31, 2022, we had 53 employees on our information technology and product development staff, as compared with 134 employees as of December 31, 2021. We incurred product development expenses (including salaries) in the amount COP $6,579,776 thousand (U.S.$1,367,880) for the year ended December 31, 2022, as compared with COP $4,594,339 thousand (U.S.$955,124) for the year ended December 31, 2021. The capital expenditure spent on building a robust technology ecosystem in previous years allowed us to reduce our headcount to focus on our profitability mission, while maintaining strong operational efficiencies.

We have implemented some measures to protect our infrastructure, backend, and data from ill-intentioned attacks. To protect our infrastructure, we are aligned with the AWS Well-Architected good practices and with the AWS security pillars, (*Avoiding*, *Detecting*, *Answering* and *Solving*.) To protect the data contained in our databases, we have established a Data Management Policy applicable to our employees and collaborators. Such policy complies with the relevant legislation on the jurisdictions where we operate and international treaties. None of the databases created, used or managed by us is accessed by personnel other than our employees and the information contained therein is not shared with any other entity. We have also implemented different tools and processes, as authentication, validation, encryption APIs in our backend to prevent un-authorized parties from accessing our credentials, databases, servers, etc.

We continue to seek ways to strengthen our security and strive to keep ourselves updated in best practices related to cybersecurity. Third-party counsel has run diagnostics on our current cyber-security measures and recommended an array of practices to implement. We are implementing such measures promptly and to the extent possible.

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*Other Business Lines*

*Private Label Products*

In the third quarter of 2019, in Colombia we began to offer customers private label products, and we currently have one of the most comprehensive private label selections in the Latin American e-grocery market. On December 31, 2022 we had 29 private label brands offering a total of 234 active products. Many of these private label products are ranked in the top tier of sellers within their respective categories in our platform. We control the end-to-end process for creating, designing, registering, procuring, and verifying supplier quality of all of our brands, and will continue building private label brands that are profitable, and that customers love. We select potential products based on data from customers and market trends. We then find manufacturers who can successfully produce our product. Finally, we work with an external agency to market the products once product quality testing has been completed.

Our offering of private label products enhances our competitiveness by offering our customers top-quality goods while eliminating the branding costs associated with CPG goods, supporting our brand positioning as a supermarket with great quality products at the best prices. A typical family basket can be up to 32% lower in our private label portfolio when compared to a comparable family basket of CPG brands through other online or traditional grocery retailers. In addition, a robust private label selection allows us to capture value from average-price but high volume products. In December 2022, in some categories, our private label brands had up to an additional 7% in gross margin as compared to CPG brands, even while factoring in the costs of developing and marketing the private label product. Finally, we have found a positive relationship between our private label brand and customer behavior: in December 2022 buyers of our private label brands buy up to 111% more items and spend up to 72% more per order when compared to other buyers. During December 31, 2022, 64% of total orders had at least one private label product, compared to 47% in December 31, 2021. Finally, our private labels also support the local economy as 80% of our suppliers for private labels are small and medium local companies. We mitigate concentration risk by diversifying suppliers so as to have substitute suppliers in the case of a supply chain disruption. Our supply chain risk is higher for our private label products than our other products because of the size of our suppliers. However, we do not identify this risk as material to our operations because (1) our volumes are still relatively small and suppliers are able to complete our orders in most cases other than extraordinary circumstances, (2) we have identified alternative suppliers that can provide similar quality products and (3) our proprietary technology allows us to forecast and predict consumer behavior in advance. As of the date of this prospectus, we have not experienced impacts from supply chain disruptions in our private label portfolio.

Below is a chart summarizing our current portfolio of private-label products:

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| | | | |
|:---|:---|:---|:---|
|  **Category** | **SKUs** | **Category** | **SKUs** |
|  Grains | 23 | Laundry | 8 |
|  Oils | 2 | Personal Care | 8 |
|  Healthy Products | 25 | Pantry | 8 |
|  Household supplies | 29 | Dairy | 8 |
|  Beverages | 12 | Pets | 3 |
|  Hot Beverages | 11 | Bakery and breads | 24 |
|  Cold meats | 7 | Snacks and Candy | 5 |
|  Frozen | 21 | Meat, poultry, fish and seafood | 21 |
|  Wine | 1 | Seasoning | 18 |

---

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*Digital Advertising Solutions and Sales Data Solutions*

In 2020, we launched a portfolio of advertising products for CPG in order to tap into the sizable market of online media spend. Today we partner with many of the world's largest CPGs whose products we carry, in communicating with their users in the digital world and improving their customer conversion cycle. We do this by selling to CPGs a variety of digital in-app features including home banners, banners within individual product departments (such as dairy), product positioning within a search category, and sponsored discounts amongst many others. By communicating with the user throughout the purchasing process, brands are able to more effectively create purchase intent as the user needs only to make a click to add the advertised product into the shopping cart.

Our customer base also enables us to obtain valuable data about our platform users, which further enables us to target our advertising efforts to suggest products that meet individual users' taste and needs through the use of targeted data analytics. We use this data not only to suggest products to our customers, but to produce reports with consolidated user data for advertising partners. We charge brands fees for all of these digital advertising solutions, and believe this will be a long-term cash-flow generator for our company. For the year ended December 31, 2022, approximately four percent of other revenues integrated in our gross margin came from ads and data. In Colombia, we have seen a positive evolution of ads and data as a percentage of other revenues integrated in gross margin over time. In 2021, ads and data as a percentage of other revenues integrated in gross margin represented 4% in Colombia. In 2022, ads and data as a percentage of other revenues integrated in gross margin represented in Colombia: (i) in the first quarter, 4%, (ii) in the second quarter, 4%, (iii) in the third quarter, 2%, and (iv) in the fourth quarter, 6%. The last quarter is in line with 6.6% of Amazon's advertising revenue as a percentage of total revenue in 2021. We expect this figure to increase going forward. As transactions in our platform grow, the quality and value of our data to CPGs increases.

*Our Strengths*

We focus on offering a seamless service for our customers, helping them save time and money on groceries. We consider the following strengths to be significant competitive advantages:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***• Operational Excellence.*** Our flexible, scalable business model allows us to operate with significantly lower distribution and logistics costs than traditional supermarkets while still offering attractive pricing to consumers. First, our dedicated infrastructure, based on continuous work flows and multi-floor picking allows us to offer full geographic coverage with only a few warehouses in the cities where we operate. Second, our long-lasting and strong relationships with suppliers have taken significant investment of time and have forged networks that are difficult to replicate in the short term. Any new market player would need

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time in order to develop both a warehouse network and a method by which to cost-effectively expand it, which provides us with a significant advantage relative to our competition in each of the countries in which we operate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Proprietary technology.*** Technology is our foundation and has given us the solid ground to grow in this industry. We have developed nearly all of our innovative technology in-house, which has not only created additional efficiency in our operations but also represents a significant source of potential future growth. We will continue to seek additional business opportunities unlocked by the development of our intellectual property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Winning Business Model.*** Our business model has significant advantages compared to other alternatives. First, our full-stack model enables end-to-end control which results in high product quality, best in class customer experience, and higher margins. Second, our model is designed for stock-in and fill-in shopping missions which reflects in high order value, low operational costs (few low-cost warehouses to offer full coverage in cities where we operate) and low delivery costs by batching orders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Maximum Flexibility and Seamless Payment Options.*** Our e-commerce platform enables buyers to make payments using a variety of different methods to best suit their needs, including credit cards, digital wallet payments and debit cards, as well as cash-on-delivery. This enables us to provide seamless shopping experience to our customers but also to capture market share: according to the World Bank financial inclusion data, in 2021, only 13.2% and 40.4% of respondents in Colombia and Brazil, respectively, own a credit card. Also, according to the Financial Institutions and Merchants, in 2021, 36% of Point-on-Sales transactions were completed through cash, followed by credit cards (28%). Our technology allows us to offer all payment options, while minimizing risk of cash collection on our end. The Financial Institutions and Merchants define Point of Sales as all transactions that occur at the physical point of sale and includes traditional in-store transactions, as well as all face-to-face transactions regardless of where they take place.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Additional profitability sources:*** Our real time data leads to highly valuable customer shopping behavior data for CPGs. We have different complexity data reports which CPGs use for marketing, commercial and innovation purposes. Also, we offer trade marketing products directly in our platforms that lead to the immediate conversion, from advertising to shopping cart. Lastly, we have a comprehensive private label portfolio of high quality and high margin products. We offer products of the main basket as well as innovative products which have shown a high adoption. For example, during December 2022, 64% of total orders had at least one private label product.

*Our Strategy*

We leverage our proprietary technology and operational excellence to change the way people shop for groceries and other home goods in Latin America, delivering our customers high quality goods at excellent prices, in a profitable way.

We aim to drive long-term sustainable growth by pursuing the following strategies:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Relentless focus on our core value proposition.*** We are laser-focused on becoming the best and most profitable at-home delivery provider of low-price online supermarket products for price-sensitive consumers in Latin America households. We serve the markets in which we operate by offering a convenient service, which would have previously been considered a luxury, and providing a selection of relevant products, all at an affordable price. Consumers want affordable groceries delivered to their homes without basing their decision on whether or not they can get it within minutes. We believe the average household is price-driven, not convenience-driven. This is a massive total addressable market (TAM) where achieving strong customer loyalty is much more sustainable than fair-to-middling loyalty across all social classes. Finally, we do this by focusing 100% on our full-stack grocery delivery model which leverages proprietary technology to manage inventory, deliver traditional supermarket items with full basket size and slotted delivery times, and maximize profit margins.

With this in mind, we intend to continue to fine-tune our business strategy to capture this market while improving profitability. We also intend to further develop high-margin categories such as alcohol (high ticket size) and fruits & vegetables (high frequency), as well as our private label portfolio. We also aim to continue to develop our digital advertising and sales data solutions to offer CPGs actionable

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insights through our platform. In order to generate more revenue with marginal cost, we have started pilot strategic alliances with other digital marketplaces that want to offer groceries, but do not have the technology or expertise to deliver. Finally, we intend to keep developing our backlog of tech improvements to further push the boundaries of operational efficiency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Controlled and efficient growth.*** We continue to improve our gross margin through (1) ongoing curation of our SKU portfolio, which includes continuous elimination of any low turnover products, (2) prioritizing private labels focused on the family basket, which allows for better margins, (3) efficient marketing investment using a customer segmentation model that unlocks value by directing subsidies and coupons towards customers that will generate the highest return for us, (4) increasing trade, ads and data revenue, and (5) increasing utilization and efficiency of existing warehouses with new technology developments. Additionally, all of our strategic initiatives support our cash burn reduction goals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Continued focus on technology as a source of profitable growth for our core business.*** We intend to continue to improve customer acquisition and retention, as well as our warehouse and last-mile efficiency, through data analysis and technology. We are developing new features to improve customer acquisition and retention, and to further improve our procurement and fulfillment efficiencies, including: (1) an "easy sharing" button in the app that allows customers to share discounted products, (2) improvements in our recommendation algorithm, (3) a module in our picking app that enables picking in batches, and (4) significant improvements to our forecasting model that positively impact inventory turnover and working capital/cash flow.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Leverage our technology and operational excellence to create value for, and profit from the business to business (B2B) grocery ecosystem.*** Approximately 54% and 70% of the grocery market in Colombia and Brazil, respectively, is sold through the traditional channel ("mom-and-pop" stores), mostly served by a fragmented industry of grocery distributors. While there are significant similarities in the supply, procurement and fulfillment of these distributors with our online B2C business model, most distributors continue to rely on obsolete third party and out of the shelf software that implies a high reliance on manual processes and sub-optimal management of inventory. We intend to benefit from strong synergies between the two businesses, and hope to move toward using our technology to improve distributor operations. By doing so, we will aim to (1) accelerate top line growth, which will support gross margin improvements, (2) significantly increase distributors' warehousing and logistic efficiencies, impacting profitability, and (3) reduce expenses through administrative synergies and more efficient marketing investments as a result of much larger brand presence. All of this is expected to accelerate the path to profitability of our core end-consumer business.

*Capital expenditures*

Capital expenditures are composed mostly of payments for the development of intangible assets and the purchase and sale of property and equipment. Even though we are a light assets company, it is necessary to invest in some operational assets of the day-to-day business in our warehouses. Additionally, we have capital expenditures related to software development, which is necessary in order to have a performing online service.

*Marketing*

Our marketing strategy is designed to grow our business by promoting the Merqueo brand, attract new customers, engage users and increase our product offerings and coverage of new cities throughout Latin America. To this end, we employ various means of advertising, including placement in leading online channels across our markets, paid and organic positioning in leading search engines, email and push notification marketing, onsite marketing, presence in offline events and live-streaming events, and use of targeted promotional discount coupons. We continue to carry out a complete coverage of promotional campaigns on commercial dates such as Children's Day, Mother's Day, Father's Day, Christmas and popular dates specific to the e-commerce industry, such as Cyber Monday and Black Friday.

Our advertising expenses were COP $14,821,804 thousand (U.S.$3.1 million) in 2022 and COP $16,123,723 thousand (U.S.$3.4 million) in 2021, respectively.

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We optimize our marketing investments by focusing on customer segments that have a higher probability of making recurring purchases that are profitable for us. To do this, we evaluate a number of customer behavior criteria, including past frequency of purchases, average order value, coupon and discount use, and profitability of these purchases to us, amongst other criteria. Our data-based models allow us to invest resources based on granular segmentation of users, and thus have targeted campaigns that respond to real needs. As a result of this optimization, we have seen a reduction of our coupons investment as a percentage of our net revenue. In 2021, in Colombia, our coupons investment as a percentage of our net revenue in Colombia represented 4%. In 2022, in Colombia, our coupons investment as a percentage of our net revenue of Colombia represented (i) in the first quarter of 2022, 9%, (ii) in the second quarter, 9%, (iii) in the third quarter of 2022, 5%, and (iv) in the fourth quarter of 2022, 3%. As we continue to improve customer segmentation and communication, we expect this value to continue to decrease. In Brazil, coupons investment as a percentage of net revenue in Brazil in 2021 represented 69%. In 2022, in Brazil, coupons investment as a percentage of our net revenue in Brazil represented: (i) in the second quarter, 18%, (ii) in the third quarter of 2022, 0.5%, and (iii) in the fourth quarter 2022, 0.2%.

*Seasonality*

Our retail business generally fluctuates as a result of holiday seasons and other local festivities. Results may also be impacted by changes in weather patterns. For example, our sales are generally positively impacted by inclement weather.

*Employees*

Our success depends in large part on our ability to attract and retain high-quality management, operations, engineering, and other personnel who are in high demand, are often subject to competing employment offers, and are attractive recruiting targets for our competitors.

To attract and retain the best talent, we strive to establish a culture where people of all backgrounds can find a sense of belonging and are able to achieve their highest capability. We measure how successful we have been in establishing the culture we need through employee engagement surveys and related tools.

As of December 31, 2022, we had 536 employees in Colombia and 166 employees in Brazil. In Colombia, we had 181 employees in administration and 355 employees in operations. In Brazil, we had 25 employees in administration and 141 employees in operations. As of December 31, 2021, we had 1,226 employees in Colombia and 102 in Brazil, of these employees, 375 were administrative and 953 were employees in operations.

We currently do not have unionized workers in Colombia or Brazil.

In addition to our employees, we use third-party contractors for our delivery services, who represent 100% of our delivery personnel. We hire these contractors both directly and through various local transport agencies that provide both delivery vehicles and the relevant personnel. These delivery persons are not Merqueo employees. See "Full-Stack Grocery Delivery Services."

*Competition*

We operate in the highly competitive food retail industry within each of the markets in which we operate. The operating environment for the food retail industry continues to be characterized by intense price competition, pressure on profit margins, aggressive expansion, increasing fragmentation of retail and online formats, entry of non-traditional competitors and market consolidation. Competition is based primarily on location, quality of products, service, price and product variety.

We experience diverse competition from both the premium and discount segments of the grocery retail sector, including chain and independently owned supermarkets, corner stores, and informal local markets.

Retailers continue to evolve as consumers also diversify and change the ways in which they shop, both online and offline. Grocery e-commerce is increasingly becoming a more significant part of the overall retail food market and is growing rapidly in Latin America, and we experience significant competition from other retailers that provide marketplace offerings.

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Our private label brands are important in that they enable us to provide a more relevant assortment of products in different price ranges, develop new and innovative alternatives and build customer loyalty. In general, our private label offerings have a higher gross margin than similarly positioned products from third-party brands.

*Government Regulations*

*Regulations in Other Jurisdictions*

We operate our business in multiple jurisdictions and, accordingly, are subject to a wide variety of national laws and regulations governing standards for our products and facilities, data protection, taxation, consumer protection, the health and safety of our employees, currency conversions and repatriation and use of local employees and vendors, among other matters, and other regulations which also applies to other companies conducting business in general. Due to areas of legal uncertainty regarding online businesses, and the increasing popularity and use of the Internet and other online services, it is possible that new laws and regulations will be adopted with respect to the Internet or other online services.

*Environmental Matters*

Our operations are governed by environmental laws and regulations in the countries where we operate, including, but not limited to, those concerning the discharge, storage, handling and disposal of hazardous or toxic substances. We believe that we possess or we are currently requesting all of the material permits required for the conduct of our operations and that our current operations are in material compliance with all applicable environmental laws and regulations.

*Data Privacy and Protection*

Our technology platform, and the user data we collect and process to run our business, are an integral part of our business model and, as a result, our compliance with laws dealing with the collection and processing of personal data is core to our strategy to improve platform user experience and build trust. Regulators in Latin America have adopted or proposed requirements regarding the collection, use, transfer, security, storage, destruction, and other processing of personally identifiable information and other data relating to individuals, and these laws are increasing in number, enforcement, fines, and other penalties.

The Colombian data protection legal framework is contained in the National Colombian Constitution, Law 1581 of 2012 and its supplemental regulations such as Chapters 25 and 26 of Decree 1074 of 2015, the Accountability Guide issued by the SIC, and others (all together the "CDPL"). The CDPL applies to all processing of personal data, owned by individuals such as employees, contractors, suppliers, and clients performed by companies regardless of their corporate purpose. Accordingly, Merqueo is bound by law to comply with the following general obligations (i) drafting and implementing a Manual for Internal Data Processing, a Policy for Processing of Personal Information, (ii) appointing a Data Protection Officer (or area in charge of this matter), (iii) creating all necessary mechanisms for the enforcement of data subjects' rights, (iv) complying with the National Databases Registry and (v) obtaining prior, informed and express consent from the data subjects in support of the legitimate processing of personal data, among others.

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*Antitrust*

Competition authorities may closely scrutinize us under antitrust and competition laws. In addition, governmental agencies and regulators may, among other things, prohibit future acquisitions, divestitures, or combinations we may want to execute, impose significant fines or penalties, require divestiture of certain of our assets, or impose other restrictions that limit or require us to modify our operations, including limitations on our contractual relationships with customers or restrictions on our pricing models.

*Intellectual Property*

We believe that our intellectual property is essential to our business and affords us a competitive advantage in the markets in which we operate. Our intellectual property includes the content of our website, mobile applications, registered domain names, software code, firmware, hardware and hardware designs, registered and unregistered trademarks, trademark applications, copyrights and trade secrets.

To protect our intellectual property, we rely on a combination of copyright, trademark, patent, and trade secret laws, contractual provisions, end-user policies, and disclosure restrictions. Upon discovery of potential infringement of our intellectual property, we assess and when necessary, take action to protect our rights as appropriate. We also enter into confidentiality agreements and invention assignment agreements with our employees and consultants and seek to control access to, and distribution of, our proprietary information in a commercially prudent manner.

*Consumer Protection*

We are subject to consumer protection regulations applicable in the countries in which we operate.

In Colombia, we are subject to Law 1480 of 2011, Decree 1074 of 2015, Unified Regulatory Decree for the Commerce, Industry and Tourism Sector, Decree 1499 of 2014 and Decree 587 of 2016. These regulations establish a general regime of consumers rights and manufacturers, service providers and suppliers' obligations. These rules apply to consumer relationships in the technology sector of the economy without special consumer protection regulations.

Civil courts and the Superintendency of Industry and Commerce ("SIC") have jurisdiction over civil lawsuits/actions whereby consumers request enforcement of consumer guarantees or rights, the fulfillment of promotions, or damages caused by misleading information or advertising. When there are several consumer complaints about the same company, the SIC usually starts ex officio-administrative investigations regarding the issues that generate the users' complaints, considering the need to intervene in a general manner when consumer interests are systematically violated.

In Brazil, the Federal Constitution imposed the creation of a specific law for consumer law issues, which originated the Consumer Defense Code of 1990. In addition, the Constitution also established the PROCON — Consumer Defense Agency, a public entity that directly assists the civil society and by means of administrative proceedings, can establish high fines for non-compliance with consumer legislation. In addition, the Brazilian Civil Code also establishes guidelines and obligations that must be observed by companies.

Brazil has a vast number of lawsuits involving consumer law due to the creation of the Special Courts, in 1995, which provides access to justice without the need of lawyers in cases where the value of the cause is less or equal to ten (10) minimum wages. Therefore, a good part of the lawsuits are in the Special Courts, which despite facilitating access, have considerably increased the number of cases in the field of consumer law.

*Advertising, sale and transport of key products*

We are subject to consumer protection regulation and other regulatory matters that specifically limit and burden the advertising, sale and transport of key products that we offer to our customers, specially liquors, pharmacy products including OTC medicines, dietary supplements and beauty and skin related products. In Colombia, the Superintendence of Industry and Commerce ("SIC") and local and national health authorities have the ability to audit the compliance of the regulatory framework during any step of our process chain. These regulations obligate the Company to implement specific measures for (i) including mandatory text in all kinds of advertisements (including during the purchase of products on our app), (ii) the standards for storage of products at the warehouse, and (iii) controls on the transportation of certain products, such as hard liquor, between different states.

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Additionally, if the Company decides to store, sell and transport medicines that require a prescription, the burden of compliance will be more complicated as the Company will have to have an expert in place that reviews, validates, approves and archives all the prescriptions provided by the consumers, having additional obligations in connection with health insurances, health responsibility and any possible damage to be caused to a consumer by the medicine provided.

In Brazil, the sale and advertising of products are regulated by local, federal and national laws and agencies. Product advertising is regulated by the Brazilian National Agency for Advertising Self-Regulation (CONAR), which issues regulation based on the Brazilian Federal Constitution, the Consumer Defense Code, and federal legislation in force regarding each specific product area. The sale of alcoholic beverages in Brazil is regulated by Federal Law No. 9.294 of 1996, so CONAR issues specific advertising regulation and is also responsible for inspecting, judging, and deliberating on possible violations of legislation and its regulation.

In Brazil, the National Health Surveillance Agency (ANVISA) regulates medicines and CONAR establishes guidelines for advertising following ANVISA's legislation and regulations. There is vast legislation on these subjects and regulatory agencies that issue regulations and also supervise and impose fines to companies that do not comply with such regulations.

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#### Management
The following table sets forth information for the executive officers, directors and key employees:

#### Directors and executive officers
Our directors and executive officers are as follows:

#### Directors and Executive Officers

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| | | |
|:---|:---|:---|
|  **Name** | **Age** | **Position** |
|  My Vu Thuy Vo | 35 | Director |
|  Jeffrey Scott Ransdell | 54 | Director |
|  Douglas Hewson | 56 | Director |
|  Patricia Saenz | 46 | Director |
|  Maria Pia Iannariello | 49 | Director |
|  Pedro Jose Molina | 47 | Director |
|  Patrick Müller - Sarmiento | 49 | Director |
|  Felipe Ossa | 35 | CEO |
|  Jairo Medina | 40 | CFO |
|  Saulo Brazil | 40 | COO |
|  Jonathan Sánchez | 36 | VP Technology and Product |
|  Juan Pablo Trujillo | 30 | VP Data and Marketing |
|  Carla Peña | 48 | CPO |

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Our directors and executive officers are as follows:

*My Vu Thuy Vo*, director. My Vu Thuy Vo has served as a director of Merqueo since 2022. Ms. Vo has more than 12 years of experience in corporate finance and investment management. Since 2018, Ms. Vo has been Managing General Partner and Chief Investment Officer of Fuel Venture Capital leading due diligence processes and giving advice to companies in the portfolio throughout the challenges of entrepreneurship. Ms. Vo holds a BS in Financial Economics and Mathematics from Center College and is a member of the CFA Society.

*Jeffrey Scott Ransdell, director.* Jeffrey Scott Ransdell has served as a director of Merqueo since 2021. Mr. Ransdell has experience in wealth management, having worked for 20 years of experience in Merrill Lynch where he managed more than COP $130 billion of global private client investment assets. Since 2016, Mr. Randsell is founder and Managing Director of Fuel Venture Capital, a technology company focused fund based in Miami. Mr. Ransdell holds a BA in Business Administration.

*Douglas Hewson, director.* Douglas Hewson has served as a director of Merqueo since 2019. Mr. Hewson has more than 14 years of experience in working with entrepreneurial general partner teams alongside management teams that are building businesses and making a difference. Since 2009, Mr. Hewson has been a Managing Partner of Portland Private Equity, a private equity fund management company. At Portland Private Equity, he has primary responsibility for investor relations. Mr. Hewson holds a BA in Political Science from Wilfrid Laurier University and an LLB in Law for University of Ottawa. We believe Mr. Hewson is well qualified to serve as director due to his extensive corporate and private venture capital experience in Latin America.

*Patricia Saenz*, *director*. Patricia Saenz has served as a director of Merqueo since 2022. Ms. Saenz has more than 15 years of experience on investments, especially in early stage companies. Since 2019, Ms. Saenz is Managing Partner of Ewa Capital, a venture capital firm with the commitment to narrow gender inequality in Latin America. Ms. Saenz is a Board Member of ColCapital (Colombian PE and VC Association. Ms. Saenz holds a Bachelor of Business from City University and a MBA from Instituto de Empresa.

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*Maria Pia Iannariello*, *director*. Maria Pia Iannariello has served as a director of Merqueo since 2022. Ms. Iannariello has more than 10 years of experience in the carbon market as founder and president of MGM International. In 2011, Ms. Iannariello founded MGM Innova Capital, a private equity firm and green infrastructure investment focused on energy efficiency and renewable energy. Ms. Iannariello holds a BS of Business Administration and Economics from The University of Texas and a PhD of International Finance from George Washington University.

*Patrick Müller — Sarmiento*, *director*. Patrick Müller — Sarmiento has served as a director of Merqueo since 2022. Ms. Müller — Sarmiento has experience in consulting and advisory in the retail and consumer goods industries, offering innovative solutions leveraged in technology and sustainable processes. Ms. Müller — Sarmiento is currently Senior Partner of Roland Berger. Ms. Müller — Sarmiento holds a MBA from Babson College.

*Pedro Jose Molina, director.* Pedro Jose Molina has served as a director of Merqueo since 2019. Mr. Molina is an Investment Partner of Portland Private Equity since 2018 and currently serves on the boards of Rose Hill Acquisition Corporation, Clinica de Oftalmología San Diego and Grupo IGA (the leading food and beverage group in Colombia). Mr. Molina has more than 12 years of experience in investment banking, with particular focus on M&A, and has been Head of Investment Banking/CCS for UBS in Colombia (2016-2018) and Head of Investment Banking for Citi in Colombia (2013-2016). Mr. Molina holds a BA in Business Administration for Universidad EAFIT and an MBA for Babson College. We believe Mr. Molina is well qualified to serve as director due to his extensive M&A experience and his strong relations with numerous financial and strategic players of different economies and industries.

*Felipe Ossa, Chief Executive Officer.* Felipe Ossa has served as the Chief Executive Officer ("CEO") of Merqueo since 2022, having previously led the day-to-day business as COO. Mr. Ossa has more than 10 years of experience in Digital/Agile Transformation and business growth in tech-based companies. Before joining Merqueo, Mr. Ossa led a 400-person team as Managing Director at Domicilios.com, the Colombian operation of Delivery Hero (2018-2021). Before that, he worked as Project Leader at The Boston Consulting Group (2015-2018), focusing on agile/digital transformations, and business turnarounds. Mr. Ossa has a BSc in Civil Engineering from Tufts University and an MBA from The Wharton Business School.

*Jairo Medina, CFO.* Mr. Jairo Medina has served as the Chief Financial Officer ("CFO") of Merqueo since 2021. Mr. Medina has more than 15 years of experience in financial areas (controlling, reporting, treasury, audit, corporate finance) developing and executing strategic plans to achieve profitability and cash flow objectives. Before joining Merqueo, Mr. Medina was the Finance Senior Director in Colombia for Grupo Exito (2017-2021) and the Manager of capital structure operations in Latin America for Groupe Casino. Mr. Medina has also worked for other multinational groups such as Carrefour. Mr. Medina holds a BA in Business Administration from Universidad de los Andes, a Masters in Banking and Financial Markets from Toulouse Business school and an International MBA from EM Lyon Business School.

*Saulo Brazil, Chief Operations Officer.* Saulo Brazil joined Merqueo in 2022 as Country Manager for Brazil. Prior to joining Merqueo, Mr. Brazil was Co-Founder and CEO of Delivery Center, a technology company connecting drivers, marketplaces to retailers, enabling them to sell online. Mr. Brazil experience in retail, pricing and marketing, working in companies such as Shell and brMalls. Mr. Brazil holds a BA in Economics from UERJ and a MBA from FIA USP.

*Jonathan Sánchez, VP Technology and Product.* Jonathan Sánchez has been the Vice President of Technology and Product of Merqueo since 2016. Mr. Sánchez has more than 15 years of experience in software development, architecture and data modelling in companies like Publicar, the Colombian yellow pages. Mr. Sánchez holds a BSc in Systems Engineering and Computer Networks from Universidad Simon Bolivar.

*Juan Pablo Trujillo, VP Data and Marketing.* Juan Pablo Trujillo has been the Vice President of Data of Merqueo since 2018. Mr. Trujillo has more than 7 years of experience managing data teams (data quality, business intelligence and analytics) and executing a data-driven culture. Prior to joining Merqueo, Mr. Trujillo had data management roles at Banco Davivienda, one of the leading banks in Colombia and Cruz Verde Pharmaceutics. Mr. Trujillo holds a BSc in Industrial Engineering from Universidad de los Andes.

*Carla Peña, Chief People Officer.* Carla Peña has been Chief People Officer ("CPO") of Merqueo since 2022. Ms. Peña has more than 22 years of experience in human resources across multiple industries: technology, retail and finance. She has experience in Sony, Falabella, Banco Falabella, and Ikea. Ms. Peña holds an undergraduate degree of Psychology from Pontificia Universidad Javeriana.

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#### Corporate Governance
*Composition of our Board of Directors*

Our board of directors currently consists of 7 directors, all of whom were appointed pursuant to the Memorandum and Articles of Association and can resign or be removed in accordance with the Second Amended and Restated Memorandum of Association and Amended and Restated Articles of Association. While we do not have a formal policy regarding board diversity, our board of directors will consider a broad range of factors relating to the qualifications and background of nominees. Our board of directors' priority in selecting board members is identification of persons who will further the interests of our shareholders through their established record of professional accomplishment, the ability to contribute positively to the collaborative culture among board members, knowledge of our business, understanding of the competitive landscape and professional and personal experiences and expertise relevant to our growth strategy.

There is no Cayman Islands law requirement that a director must hold office for a certain term and stand for re-election unless the Second Amended and Restated Memorandum of Association and Amended and Restated Articles of Association outlines such requirements. We do not have any age limit requirements relating to our director's term of office.

The Second Amended and Restated Memorandum of Association and Amended and Restated Articles of Association provide that the office of a director of the company shall be vacated if such director: (i) becomes bankrupt or makes any arrangement or composition with his or her creditors, (ii) dies or is found to be or becomes of unsound mind, (iii) resigns his or her office by notice in writing to the company, (iv) is prohibited by applicable law or the Nasdaq, the United States Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under applicable laws from being a director; or (v) if he or she shall be removed from office pursuant to the Second Amended and Restated Memorandum of Association and Amended and Restated Articles of Association.

*Board's Role in Risk Oversight*

Our board of directors oversees the management of risks inherent in the operation of our business and the implementation of our business strategies. Our board of directors performs this oversight role by using several different levels of review. In connection with its reviews of our operations and corporate functions, our board of directors addresses the primary risks associated with those operations and corporate functions. In addition, our board of directors reviews the risks associated with our business strategies periodically throughout the year as part of its consideration of undertaking any such business strategies.

Each of our board committees also oversees the management of our risk that falls within the committee's areas of responsibility. In performing this function, each committee has full access to management, as well as the ability to engage advisors. Our internal auditor provides reports to the audit committee and is responsible for identifying, evaluating and implementing risk management controls and methodologies to address any identified risks. In connection with its risk management role, our audit committee meets privately with representatives from our independent registered public accounting firm, our Chief Financial Officer, the internal auditor and the legal manager. The audit committee oversees the operation of our risk management program, including the identification of the primary risks associated with our business and periodic updates to such risks, and reports to our board of directors regarding these activities.

We expect our board of directors to delegate the monitoring of cybersecurity risks and security breaches to our management, including in connection with third-party service providers, contractors consultants, and/or business partners. We have prepared our security and cybersecurity policy based on industry guidelines and practices and it is being reviewed and approved by the board of directors.

Pursuant to the security and cybersecurity policy, as of February 2023 a separate security committee composed of members of our technology and internal control team (which is subordinated to the audit committee) was created, and is in charge of managing the day-to-day risk management processes, overseeing information on security risks and establishing the appropriate mechanisms and measures to assess, mitigate, and respond to security incidents that may potentially arise. Except as otherwise required, security committee meetings are held quarterly.

Notwithstanding the delegation above, our board of directors will require prompt report from the security committee of any cybersecurity risk that is deemed material. We expect that with the implementation of the security committee, further governance procedures will be discussed to rapidly enhance the security committee interaction with our board of directors and audit committee, including future regular reporting on cybersecurity matters.

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*Board Committees*

Our board of directors has established an audit committee and a compensation committee, each of which operates pursuant to a separate charter adopted by our board of directors.

*Audit Committee*

My Vu Thuy Vo, Pedro Jose Molina and Patrick Müller — Sarmiento have been appointed and currently serve on the audit committee, which is chaired by Pedro Jose Molina. Our board of directors has determined that Patrick Müller — Sarmiento is "independent" for audit committee purposes as that term is defined in the rules of the SEC and the applicable rules of the Nasdaq. Under the Exchange Act rules, we will be required to have one independent director on our Audit Committee during the 90-day period beginning on the date of effectiveness of this Registration Statement. After such 90-day period and until one year from the date of effectiveness of this registration statement, we are required to have a majority of independent directors on our Audit Committee. Thereafter, our Audit Committee is required to be composed entirely of independent directors.

The audit committee's responsibilities include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• making recommendations to the board of directors regarding selecting and appointing our independent registered public accounting firm, and approving the audit and permitted non-audit services to be provided by our independent registered public accounting firm;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• evaluating the performance and independence of our independent registered public accounting firm;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• monitoring the integrity of our financial statements and our compliance with legal and regulatory requirements as they relate to our financial statements or accounting matters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing the adequacy and effectiveness of our accounting and internal control policies and procedures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• establishing and overseeing procedures for the receipt, retention and treatment of accounting-related complaints and concerns;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing and discussing with the independent registered public accounting firm the results of our year-end audit, and recommending to our board of directors, based upon such review and discussions, whether our financial statements shall be included in our Annual Report on Form 20-F; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing all related party transactions for potential conflict of interest situations and approving all such transactions.

Patrick Müller — Sarmiento has been appointed as an audit committee financial expert, as defined in the SEC rules and satisfying the financial sophistication requirements of the Nasdaq.

*Compensation Committee*

My Vu Thuy Vo, Pedro Jose Molina, and Maria Pia Iannariello have been appointed and currently serve on the compensation committee, which is chaired by Pedro Jose Molina. The compensation committee's responsibilities include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• establishing and reviewing the goals and objectives of our executive compensation plans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• establishing the goals and objectives relevant to Chief Executive Officer compensation, and making a recommendations to our board of directors in evaluating our Chief Executive Officer's performance in light of these goals and objectives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• evaluating the performance of our executive officers in light of the goals and objectives of our executive compensation plans and recommending to our board of directors with respect to the compensation of our executive officers, including our Chief Executive Officer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing the goals and objectives of our general compensation plans and other employee benefit plans, including the employee stock option plan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• retaining and approving the compensation of executive compensation advisors and other advisors advising the people and compensation committee.

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*Foreign Private Issuer Status*

Nasdaq listing rules include certain accommodations in the corporate governance requirements that allow foreign private issuers, such as us, to follow "home country" corporate governance practices in lieu of the otherwise applicable corporate governance standards of the Nasdaq. The application of such exceptions requires that we disclose each Nasdaq corporate governance standard that we do not follow and describe the Cayman Islands corporate governance practices we do follow in lieu of the relevant Nasdaq corporate governance standard. We currently follow Cayman Islands corporate governance practices in lieu of the corporate governance requirements of the Nasdaq in respect of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the majority independent director requirement under Section 5605(b)(1) of Nasdaq listing rules;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the requirement under Section 5605(d) of Nasdaq listing rules that a compensation committee comprised solely of independent directors governed by a compensation committee charter oversee executive compensation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the requirement under Section 5605(e) of Nasdaq listing rules that director nominees be selected or recommended for selection by either a majority of the independent directors or a nominations committee comprised solely of independent directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Shareholder Approval Requirements under Section 5635 of the Nasdaq listing rules;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the requirement under Section 5605(b)(2) of Nasdaq listing rules that the independent directors have regularly scheduled meetings with only the independent directors present;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the requirement to adopt a code of conduct applicable to all directors, officers and employees under Section 5610 of Nasdaq; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the requirement under Section 5630 of Nasdaq listing rules that the company must conduct appropriate review and oversight of all related party transactions for potential conflict of interest situations.

Cayman Islands law does not impose a requirement that the board consist of a majority of independent directors or that such independent directors meet regularly without other members present. Nor does Cayman Islands law impose specific requirements on the establishment of a compensation committee or nominating committee or nominating process.

*Code of Ethics and Conduct*

Our board has adopted a code of ethics and conduct that applies to our directors, officers and employees. A copy of this code is available on our website: . We intend to disclose on our website or in a current report on Form 6-K, any amendments to the Code of Ethics and Conduct and any waivers of the Code of Ethics and Conduct that apply to our chief executive officer, chief financial officer, controller, or persons performing similar functions.

*Duties of Directors*

Under Cayman Islands law, our directors and officers owe certain fiduciary duties to the company. In certain circumstances, a shareholder may have the right to seek damages if a duty owed by the directors is breached.

Under Cayman Islands law, directors and officers owe the following fiduciary duties:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• duty to act in good faith in what the director or officer believes to be in the best interests of the company as a whole;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• duty to exercise powers for the purposes for which those powers were conferred and not for a collateral purpose;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• directors should not improperly fetter the exercise of future discretion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• duty to exercise powers fairly as between different sections of shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• duty not to put themselves in a position in which there is a conflict between their duty to the company and their personal interests; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• duty to exercise independent judgment.

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In addition to the above, under Cayman Islands law, directors also owe a duty of care which is not fiduciary in nature. This duty has been defined as a requirement to act as a reasonably diligent person having both the general knowledge, skill and experience that may reasonably be expected of a person carrying out the same functions as are carried out by that director in relation to the company and the general knowledge, skill and experience of that director.

As set out above, under Cayman Islands law, directors have a duty not to put themselves in a position of conflict and this includes a duty not to engage in self-dealing, or to otherwise benefit as a result of their position. However, in some instances what would otherwise be a breach of this duty can be forgiven and/or authorized in advance by the shareholders provided that there is full disclosure by the directors. This can be done by way of permission granted in the Second Amended and Restated Memorandum of Association and Amended and Restated Articles of Association or alternatively by shareholder approval at general meetings. We have the right to seek damages if a duty owed by our directors is breached.

The functions and powers of our board of directors include, among others:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• appointing officers and determining the term of office of the officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• exercising the borrowing powers of the company and mortgaging the property of the company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• executing checks, promissory notes and other negotiable instruments on behalf of the company.

*Interested Transactions*

Pursuant to the Second Amended and Restated Memorandum of Association and Amended and Restated Articles of Association, so long as it does not adversely affect such person's performance of duties or responsibilities to the company and so long as it is not in direct competition with the company and the company's business, no director or officer shall be disqualified by his office from contracting and/or dealing with the company as vendor, purchaser or otherwise; nor shall any such contract or any contract or arrangement entered into by or on behalf of the company in which any director or officer shall be in any way interested be or be liable to be avoided; nor shall any director or officer so contracting or being so interested be liable to account to the company for any profit realized by any such contract or arrangement by reason of such director or officer holding that office or the fiduciary relationship thereby established. However, any such transaction that would constitute a "related party transaction" pursuant to the laws or rules promulgated by the SEC or the stock exchange on which our shares are then listed, shall require the review and approval of the audit committee. The nature of the director's interest must be disclosed by such director at the meeting of the directors at which the contract or arrangement is considered if the director's interest then exists, or in any other case, at the first meeting of the directors after the acquisition of his interest.

A director must disclose such interest in accordance with the Second Amended and Restated Memorandum of Association and Amended and Restated Articles of Association.

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**Executive Compensation**

Under Cayman Islands law, we are not required to disclose compensation paid to our directors and executive officers on an individual basis and we have not otherwise publicly disclosed this information elsewhere.

For the year ended December 31, 2022, the aggregate compensation expense for our directors and executive officers for services in all capacities to us and our subsidiaries was U.S.$648,527, which includes both benefits paid in kind and compensation, as well as share option awards to purchase, in the aggregate, 1,572,406 ordinary shares with exercise prices of COP $1.00 (or U.S.$0.000208) per ordinary share, and which expire four years following the date of each grant pursuant to the terms and conditions of our employee stock option plan. This amount of shares will be adjusted to 4,911 shares to reflect the Reverse Stock Split (as defined below) (see "Description of Share Capital" below), and the exercise price will be accordingly adjusted to U.S.$0.07.

Our executive compensation philosophy includes the following objectives:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• To pay for performance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• To attract, develop, reward, and retain great talent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• To motivate our talent to achieve short-term and long-term goals that lead to sustainable long term shareholder value creation.

Our executive officers receive fixed and variable compensation. They also receive benefits in line with market practice and with the benefits extended to our broad-based employee population.

The fixed component of compensation consists of the base salary. This provides a fixed source of income and acts as the foundation for other pay components. The base salary is reflective of executive role, responsibility, and individual performance, and it is designed to be market-competitive and attract and retain critical talent. We review base salaries annually, and make adjustments as appropriate based on market, performance and any change in responsibility.

While none of our directors have service contracts with us or our subsidiaries that provide for benefits upon termination of their services, consistent with market practice, certain of our executive officers are entitled to certain benefits upon termination, including a cash severance payment if we terminate his or her employment without cause.

#### Employee Stock Option Plan
Our board of directors adopted an Employee Stock Option Plan (the "Plan") to attract, retain and motivate persons who are expected to make contributions to us and by providing those persons with incentives that are intended to align their interests with those of our stockholders.

The following summarizes the terms of the plan:

*Types of Awards*. The Plan permits the awards of non-qualified stock options, restricted stock, restricted stock units and other cash-based, equity-based or equity-related awards in such amounts and on such terms as determined by the Plan administrator.

*Plan Administration*. The Plan is administered by the Compensation Committee. The Committee determines the participants to receive the awards, the type and number of awards to be granted to each participant, the fair market value of the ordinary shares (provided that such determination shall be applied consistently with respect to Plan participants), and the terms and conditions of each grant. The Committee has the authority to amend, reprice or adjust outstanding awards under the Plan, and to issue new awards in substitution or exchange for outstanding options previously issued under the Plan.

*Eligibility*. All employees, non-employee directors and consultants are eligible to be participants under the Plan.

*Transfer Restrictions*. Unless otherwise determined by the Plan administrator, awards may not be sold, pledged, assigned, hypothecated, transferred or disposed of in any manner other than by will or by the laws of descent or distribution.

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*Termination and Amendment of the Plan*. The board of directors may at any time amend or terminate the Plan, but no amendment or termination shall be made that would materially and adversely affect the rights of any Plan participant without his or her consent. Shareholder approval will be obtained for any amendment or termination of the Plan to the extent required by applicable law or our then-effective shareholder's agreement. The Plan terminates on the ten (10) year anniversary of its adoption by the board of directors.

*Change in Control*. In the event of a change of control as defined in the Plan, the Compensation Committee, acting in its sole discretion without the consent or approval of any holder, may determine to effect one or more of the following: accelerate vesting, waive any forfeiture conditions, redeem in whole or in part outstanding Awards, cancel Awards that remain subject to a restricted period, or otherwise modify or adjust any other condition or limitation regarding an Award.

We intend to reserve 4,103,921 Class A ordinary shares for issuance under the Plan, whereby such shares shall be reclassified as ordinary shares immediately prior to the completion of this Offering. In addition, such aggregate number of shares will automatically increase on January 1<sup>st</sup> of each year for a period of 10 years, commencing on January 1, 2023 and ending on (and including) January 1, 2032, in an amount determined by the Compensation Committee of up to three (3) percent of our fully-diluted ordinary shares as of the date of such increase. Shares issued under the Plan that are later forfeited to or repurchased by us will be available for future issuance under the Plan.

*Performance Awards*

We intend to grant performance awards to certain members of management (the "Performance Awards"). The Performance Awards will be comprised of a stock option to purchase ordinary shares. A portion of each Performance Award will vest subject to achievement of certain strategic milestones important to our growth and success, and a portion will be divided equally into ten separate tranches, as follows, that will vest upon certification by the Plan's administrator that both (i) the market capitalization milestone for such tranche and (ii) a certain number of operational milestones focused on Revenue and EBITDA have been met. Generally, measurement of the market capitalization milestones will be based on both (i) a three calendar month trailing average of the our stock price as well as (ii) a 30 calendar day trailing average of our stock price. Upon the consummation of certain acquisitions or split-up, spin-off or divestiture transactions, each then-unachieved market capitalization milestone and/or operational milestone may be adjusted to offset the impact of such transactions.

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| | | | |
|:---|:---|:---|:---|
|  ***Tranche*** | ***%* Award** | **Market Cap <br>Milestone** | **Operational Milestone** |
| **1** | 5.6% | $240000000 | Achievement of any 1 of the milestones listed in Table 2 |
| **2** | 5.6% | $500000000 | Achievement of any 2 of the milestones listed in Table 2 |
| **3** | 5.6% | $600000000 | Achievement of any 3 of the milestones listed in Table 2 |
| **4** | 5.6% | $700000000 | Achievement of any 4 of the milestones listed in Table 2 |
| **5** | 5.6% | $800000000 | Achievement of any 5 of the milestones listed in Table 2 |
| **6** | 5.6% | $900000000 | Achievement of any 6 of the milestones listed in Table 2 |
| **7** | 5.6% | $1000000000 | Achievement of any 7 of the milestones listed in Table 2 |
| **8** | 5.6% | $1100000000 | Achievement of any 8 of the milestones listed in Table 2 |
| **9** | 5.6% | $1200000000 | Achievement of any 9 of the milestones listed in Table 2 |
| **10** | 5.6% | $1400000000 | Achievement of any 10 of the milestones listed in Table 2 |

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#### Table 2. Operational Milestones

---

| | | |
|:---|:---|:---|
|  **Revenue** | **Revenue** | **EBITDA** |
|  $ | 100000000 | $500000 |
|  $ | 200000000 | $2000000 |
|  $ | 300000000 | $4500000 |
|  $ | 400000000 | $8000000 |
|  $ | 500000000 | $12500000 |
|  $ | 600000000 | $18000000 |
|  $ | 700000000 | $24500000 |
|  $ | 800000000 | $32000000 |

---

In establishing the Revenue and EBITDA milestones, our board of directors carefully considered a variety of factors, including our growth trajectory and internal growth plans. Our board of directors considers each of the market capitalization and operational milestones to be challenging hurdles, which will only be satisfied if we achieve extraordinary growth.

#### Share Ownership
The shares and any outstanding beneficially owned by our directors and officers and/or entities affiliated with these individuals are disclosed in the section titled "Principal Shareholders."

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#### Certain Relationships and Related Party Transactions
We entered into a set of agreements with MGM Energy Efficiency Colombia S.A.S. ("MGM") under which we obtained a financing of up to COP $5,438,570 thousand (the "MGM Agreement"). The MGM Agreement was provided to support our operating cash flows for the purchase of relevant equipment for use in our warehouses. As of December 31, 2022, the outstanding amount of principal owed is COP $4,892,894 thousand, which shall be paid on a monthly basis through June 2027.

See "Management's Discussion and Analysis Of Financial Condition and Results of Operations — Indebtedness — Convertible Debt Notes."

See "Description of Share Capital — Shareholders Agreement."

See "Executive Compensation — Employee Stock Option Plan."

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#### Principal ShareholderS
The following table sets forth certain information with respect to the beneficial ownership of our ordinary shares (See "Presentation of Financial and Other Information — Corporate event"), as adjusted to reflect the sale of ordinary shares offered by us in this Offering, assuming no exercise of the underwriters' option to purchase additional ordinary shares to cover over-allotments, for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each of our named executive officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each of our directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all of our directors and executive officers as a group; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each person known by us to be the beneficial owner of more than 5% of our outstanding shares of ordinary shares.

Beneficial ownership is determined in accordance with the rules and regulations of the SEC. In computing the number of shares beneficially owned by a person and the percentage ownership of that person, we have included shares that the person has the right to acquire within 60 days, including through the exercise of any option, warrant or other right or the conversion of any other security. These shares, however, are not included in the computation of the percentage ownership of any other person.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Shares Beneficially Owned <br>Prior to the Offering** | **Shares Beneficially Owned <br>Prior to the Offering** | **Shares Beneficially Owned <br>After the Offering** | **Shares Beneficially Owned <br>After the Offering** |
|  **Name of Beneficial Owner** | **Ordinary Shares<br>(as-if converted, <br>after the Reverse <br>Stock Split)** | **Percentage <br>of beneficial <br>ownership** | **Ordinary <br>Shares** | **Percentage <br>of beneficial <br>ownership** |
|  Entities affiliated with Portland Private Equity Group<sup>(1)</sup> | 4314126 | 35.62% |  |  |
|  Entities affiliated with Fuel Venture Capital<sup>(2)</sup> | 1798957 | 14.85% |  |  |
|  Entities affiliated with MGM<sup>(3)</sup> | 607672 | 5.02% |  |  |
|  Entities affiliated with BLAO<sup>(4)</sup> | 455843 | 3.76% |  |  |
|  Directors and Executive Officers: |  |  |  |  |
|  Felipe Ossa |  | \* |  |  |
|  Laura Oyuela |  | \* |  |  |
|  Jonathan Sánchez |  | \* |  |  |
|  Juan Pablo Trujillo |  | \* |  |  |
|  Jairo Medina |  | \* |  |  |
|  Saulo Brazil |  | \* |  |  |
|  Andrés Escobar |  | \* |  |  |

---

____________

(1) Includes (i) 84,931,520 Series A Preferred shares, 61,360,244 Series B Preferred shares, 1,941,957 Series C 1 Preferred shares, 2,338,623 Series C 3 Preferred shares, 375,700,522 Series D 1 Preferred shares, and 635,213,453 warrants convertible into Series D 2 Preferred shares held of record by Portland Caribbean Fund II, L.P., (ii) 14,840,488 Series A Preferred shares, 10,721,767 Series B Preferred shares, 325,290 Series C 1 Preferred shares, 408,639 Series C 3 Preferred shares, 63,810,002 Series D 1 Preferred shares, and 108,841,169 warrants convertible into Series D 2 Preferred shares held of record by Portland Caribbean Fund II (Barbados), L.P., (iii) 3,454,513 Series A Preferred shares, 2,495,773 Series B Preferred shares, 78,523 Series C 1 Preferred shares, 95,121 Series C 3 Preferred shares, 31,722,981 Series D1 Preferred shares, and 25,775,712 warrants convertible into Series D 2 Preferred shares held of record by Portland Fund II Co-Invest partnership, and (iv) up to a maximum of 1,460,481 ordinary shares which will be issued as a result of conversion of the Outstanding Portland Convertible Note Agreements and the PJSX Convertible Note Agreements. All the preferred shares, warrants and convertible debt notes held by entities affiliated with Portland Private Equity Group will be subject to the Reverse Stock Split and automatically re-designated as ordinary shares immediately prior to completion of this Offering (see Description of Share Capital below).

(2) Includes (i) 57,341,044 Preferred Series C 1 shares, 130,190,282 Preferred Series D 1 shares, and 225,645,277 warrants convertible into Series D 1 Preferred shares held of record by Fuel Venture Capital Fund I, LP, (ii) 45,872,837 Series C 1 Preferred shares held of record by Fuel Venture Capital Fund Co-Invest Series, LLC Series K-1, (iii) 127,427,201 Series D 1 Preferred shares and 220,856,317 warrants convertible into Series D 1 Preferred shares held of record by Series K-2, LLC an Individual Protected

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Series of Fuel Venture Capital Fund Co-Invest Series, LLC a Series LLC, and (iv) up to a maximum of 148,951 ordinary shares which will be issued as a result of conversion of the Fuel Convertible Note Agreements. All the preferred shares and warrants held by entities affiliated with Fuel Venture Capital will be subject to the Reverse Stock Split and automatically re-designated as ordinary shares immediately prior to completion of this Offering (see Description of Share Capital below).

(3) Includes (i) 29,094,708 Series C 2 Preferred shares held of record by MGM Sustainable Energy Fund II LP (ii) 5,133,869 Series C 2 Preferred shares held of record by MGM Sustainable Energy Ontario Parallel Fund II LP (iii) 8,531,364 Series C 2 Preferred shares held of record by MGM Sustainable Energy Fund (Luxemburg) SCSp, (iv) 88,833,615 Series D 1 Preferred shares and 153,966,067 warrants convertible into Series D 1 Preferred shares held of record by MGM Energy Efficiency Colombia S.A.S., and (v) up to a maximum of 14,859 ordinary shares which will be issued as a result of conversion of the MGM Convertible Note Agreement. All the preferred shares and warrants held by entities affiliated with MGM will be subject to the Reverse Stock Split and automatically re-designated as ordinary shares immediately prior to completion of this Offering (see Description of Share Capital below).

(4) Includes (i) 246,155,468 warrants convertible into Series D 2 Preferred shares held of record by Blue like an Orange Sustainable Capital Fund SICAV-SIF SCS — Latin America Fund II represented by its General Partner Blue like an Orange Sustainable Capital Fund GP S.a.r.l. All the preferred shares and warrants held by entities affiliated with Blue like an Orange will be subject to the Reverse Stock Split and automatically re-designated as ordinary shares immediately prior to completion of this Offering (see Description of Share Capital below).

\* Each of our directors and executive officers included in the table above holds vested stock options that upon exercise would entitle each such holder to less than 1% of our outstanding ordinary shares.

We are not aware of any arrangement that may, at a subsequent date, result in a change of control of the Company**.**

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#### Description of Share Capital
We are an exempted company incorporated in the Cayman Islands with limited liability on September 13, 2022.

Our affairs are governed principally by: (1) as currently in effect, our amended and restated memorandum and articles of association, and conditional upon this Registration Statement being declared effective by the SEC, our affairs shall be governed by our Second Amended and Restated Memorandum of Association and Amended and Restated Articles of Association, (2) the Companies Act of the Cayman Islands (As Revised), and (3) the common law of the Cayman Islands. As provided in our Second Amended and Restated Memorandum of Association and Amended and Restated Articles of Association, subject to Cayman Islands law, we have full capacity to carry on or undertake any business or activity, do any act or enter into any transaction, and, for such purposes, full rights, powers and privileges. Our registered office is c/o Conyers Trust Company (Cayman) Limited, with address: SIX, 2<sup>nd</sup> Floor, Cricket Square, PO Box 2681, Grand Cayman KY1-1111, Cayman Islands \| T +1 345 949 1040.

Our corporate purposes are unrestricted and we have the authority to carry out any object not prohibited by any law as provided by Section 7(4) of the Cayman Companies Act.

The following are summaries of material provisions of our Second Amended and Restated Memorandum of Association and Amended and Restated Articles of Association and the Cayman Companies Act insofar as they relate to the material terms of our ordinary shares. These summaries do not purport to be complete and are subject to the Second Amended and Restated Memorandum of Association and Amended and Restated Articles of Association.

Throughout the following description of our share capital, we summarized the material terms of our ordinary shares as through the Second Amended and Restated Memorandum of Association and Amended and Restated Articles of Association. We will file a copy of our complete Memorandum and Articles of Association as an exhibit to this registration statement on Form F-1.

As a result of the Corporate Reorganization, our authorized share capital is: U.S.$2,129,899 divided into 12,000,000,000 shares, comprised of the following authorized shares: (i) 8,756,562,706 Class A ordinary shares at par value U.S.$0.000208, (ii) 27,236,835 Class B ordinary shares at par value U.S.$0.000208, (iii) 114,581,438 Series A preferred shares at par value U.S.$0.000208, (iv) 74,577,784 Series B preferred shares at par value U.S.$0.000208, (v) 15,018,281 Additional Series B preferred shares at par value U.S.$0.000208, (vi) 277,739,169 Series C-1 preferred shares U.S.$0.000208, (vii) 58,448,579 Series C-2 preferred shares at par value U.S.$0.000208, (viii) 8,601,157 Series C-3 preferred shares at par value U.S.$0.000208, (ix) 905,372,205 Series D-1 preferred shares at par value U.S.$0.000208, and (x) 1,761,861,846 Series D-2 preferred shares at par value U.S.$0.000000208.

Prior to the consummation of this Offering:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) up to 1,761,861,846 Series D-2 preferred shares may be issued as a result of the conversion of the Shareholders Warrants, to the extent all warrant holders exercise their rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) we expect to effect a reverse stock split by a factor of 540x, which will reduce the number of authorized shares ("Reverse Stock Split"), whereby the new authorized share capital of the Company will be: U.S.$2,129,899 divided into 22,222,223 shares, comprised of the following authorized shares: (i) 16,215,857 Class A ordinary shares at par value U.S.$0.11232, (ii) 50,439 Class B ordinary shares at par value U.S.$0.11232 (iii) 212,188 Series A preferred shares at par value U.S.$0.11232, (iv) 138,107 Series B preferred shares at par value U.S.$0.11232, (v) 27,812 Additional Series B preferred shares at par value U.S.$0.11232, (vi) 514,332 Series C-1 preferred shares U.S.$0.11232, (vii) 108,238 Series C-2 preferred shares at par value U.S.$0.11232, (viii) 15,928 Series C-3 preferred shares at par value U.S.$0.11232, (ix) 1,676,615 Series D-1 preferred shares at par value U.S.$0.11232, and (x) 3,262,707 Series D-2 preferred shares at par value U.S.$0.00011232. We will seek shareholder approval for such Reverse Stock Split on April 2023. Following the Reverse Stock Split, the issued and outstanding shares of the Company will be the following: (i) 571,175 Class A ordinary shares at par value U.S.$0.11232, (ii) 50,437 Class B ordinary shares at par value U.S.$0.11232 (iii) 212,188 Series A preferred shares at par value U.S.$0.11232, (iv) 138,107 Series B preferred shares at par value U.S.$0.11232, (v) 27,812 Additional Series B preferred shares at par value U.S.$0.11232, (vi) 514,331 Series C-1 preferred shares at par value U.S.$0.11232, (vii) 108,238 Series C-2 preferred shares at par value U.S.$0.11232, (viii) 15,926 Series C-3 preferred shares at par value U.S.$0.11232, (ix) 1,628,358 Series D-1 preferred shares at par value U.S.$0.11232, and (x) 3,244,189 Series D-2 preferred shares at par value U.S.$0.00011232;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) 5,889,149 issued and outstanding series of preferred shares shall be converted at the applicable conversion price for each respective series of preferred shares under the terms of the Shareholders Agreement into 6,683,883 Class A ordinary shares; 66,778 authorized un-issued series of preferred shares shall be converted into Class A ordinary shares on a one-for-one basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) 50,437 issued and outstanding Class B ordinary shares and 2 authorized but un-issued Class B ordinary shares shall be converted into Class A ordinary shares on a one-for-one basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) all authorized, issued and outstanding Class A ordinary shares will be re-classified as ordinary shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) ordinary shares will be issued as a result of the conversion of the Outstanding Portland Convertible Note Agreements, PJSX Convertible Note Agreements 4 and 5, the Fuel Convertible Note Agreement, the MGM Convertible Note Agreement and the Pablo Gonzalez Convertible Note Agreement. Conversion will occur at the applicable price per share of the initial public offering with a discount of 35%. Merqueo intends to agree for the holders of these convertible notes to receive ordinary shares at par value of U.S.$0.11232 as a result of the conversion of their respective convertible notes prior to the completion of this Offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) ordinary shares at par value of U.S.$0.11232 per share may be issued as a result of the conversion of the PJSX Convertible Note Agreements 1, 2 and 3. If conversion occurs, it would occur at the applicable price per share of the initial public offering with a discount of 35%; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) 4,103,922 ordinary shares have been reserved for issuance in accordance with the terms of the Plan. After the approval of shareholders, this reserve will be collapsed into 2,433,415 ordinary shares.

Immediately prior to the completion of this Offering, our authorized share capital will be 22,222,223 ordinary shares at par value of U.S.$0.11232 per share.

Upon completion of this Offering, our authorized share capital will be 22,222,223 ordinary shares at par value of U.S.$0.11232 per share.

#### Share Capital Post-Corporate Reorganization (and prior to closing of this Offering)
*Ordinary shares.* We currently have two series of ordinary shares, Class A ordinary shares and Class B ordinary shares. The two classes of shares only differ in that Class A has voting rights, while Class B does not. Following the completion of the Reverse Stock Split, and the automatic conversion of all of the preferred shares to Class A ordinary shares and the Class B ordinary shares shall convert into Class A ordinary shares, the Class A ordinary shares shall be reclassified as ordinary shares.

*Preferred shares Series A.* These shares have preference in dividend distribution over ordinary shares. Holders of these shares are entitled to receive the remainder of the price in a deemed liquidation event in preference to ordinary shares. These shares are mandatorily convertible into ordinary shares prior to the closing of this Offering.

*Preferred shares Series B.* These shares have preference in dividend distribution over Preferred shares Series A and ordinary shares. Holders of these shares are entitled to receive the remainder of the price in a deemed liquidation event in preference to Preferred shares Series A and ordinary shares. These shares are mandatorily convertible into ordinary shares prior to the closing of this Offering.

*Additional Preferred shares Series B.* These shares have preference in dividend distribution over Preferred shares Series B, Preferred shares Series A and ordinary shares. Holders of these shares are entitled to receive the remainder of the price in a deemed liquidation event in preference to Preferred shares Series B, Preferred shares Series A and ordinary shares. These shares are mandatorily convertible into ordinary shares prior to the closing of this Offering.

*Preferred shares Series C (these shares include the following series: preferred series C*-1 *shares, preferred series C*-2 *shares and preferred series C*-3 *shares).* These shares have preference in dividend distribution over Additional Preferred shares Series B, Preferred shares Series B, Preferred shares Series A and ordinary shares. Holders of these shares are entitled to receive the remainder of the price in a deemed liquidation event in preference to Additional Preferred shares Series B, Preferred shares Series B, Preferred shares Series A and ordinary shares. These shares are mandatorily convertible into ordinary shares immediately prior to the completion of this Offering.

*Preferred shares Series D*-1*.* These shares have preference in dividend distribution over Preferred Series C, Additional Preferred shares Series B, Preferred shares Series B, Preferred shares Series A and ordinary shares. Holders

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of these shares are entitled to receive the remainder of the price in a deemed liquidation event in preference to Preferred Series C, Additional Preferred shares Series B, Preferred shares Series B, Preferred shares Series A and ordinary shares. These shares are mandatorily convertible into ordinary shares immediately prior to the completion of this Offering.

*Preferred shares Series D*-2. These shares have preference in dividend distribution over Preferred Series C, Additional Preferred shares Series B, Preferred shares Series B, Preferred shares Series A and ordinary shares. Holders of these shares are entitled to receive the remainder of the price in a deemed liquidation event in preference to Preferred Series C, Additional Preferred shares Series B, Preferred shares Series B, Preferred shares Series A and ordinary shares. These shares are mandatorily convertible into ordinary shares immediately prior to the completion of this Offering.

*Stock option contracts.* These contracts are exercisable into ordinary shares on a 1:1 ratio, in accordance with the terms of the Plan.

*Shareholders Warrants.* The Shareholders Warrants may be converted into Preferred Shares Series D-2 on any date between the date of the Shareholders Warrants issuance and the date of effectiveness of this Registration Statement, at the Shareholders Warrants holders' election. If the holder elects not to convert its warrant in full or in part, such warrant (including the right to purchase securities upon exercise and all rights and obligations therein) shall terminate on the day after this Registration Statement is declared effective by the SEC. As of the date of this prospectus, an aggregate amount of 1,751,861,847 Shareholders Warrants is outstanding and up to 1,761,861,846 Series D-2 preferred shares may be issued as a result of the conversion of the Shareholders Warrants, to the extent all warrant holders exercise their conversion rights.

*Convertible Debt Notes.* The PJSX Convertible Note Agreements 4 and 5, the Outstanding Portland Convertible Note Agreements, the Fuel Convertible Note Agreement, the Pablo Gonzalez Convertible Note Agreement and the MGM Convertible Note Agreement will be converted into ordinary shares on the day after the date of effectiveness of this Registration Statement. The PJSX Convertible Note Agreements 1, 2 and 3 may be converted into ordinary shares on the date of effectiveness of this Registration Statement. If conversion were to occur under any of the PJSX Convertible Note Agreements, the Outstanding Portland Convertible Note Agreements, the Fuel Convertible Note Agreement, the Pablo Gonzalez Convertible Note Agreement and the MGM Convertible Note Agreement it would be executed considering the applicable price per share of the initial public offering with a discount of 35%.

#### Dividends
Subject to the foregoing, the payment of cash dividends in the future, if any, will be at the discretion of the company's board of directors and will depend upon such factors as earnings levels, capital requirements, contractual restrictions, the company's overall financial condition, available distributable reserves and any other factors deemed relevant by the company's board of directors. Under Cayman Islands law, a Cayman Islands company may pay a dividend out of either profits (including retained earnings) or share premium, provided that in no circumstances may a dividend be paid if this would result in the company being unable to pay its debts as they fall due in the ordinary course of its business.

Even if the Company's board of directors decides to pay dividends, the form, frequency and amount will depend upon the company's future operations and earnings, capital requirements and surplus, general financial condition, contractual restrictions and other factors that the company's board of directors may deem relevant. When making recommendations on the timing, amount and form of future dividends, if any, the Company's board of directors will consider, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• company's results of operations and cash flow;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• company's expected financial performance and working capital needs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• company's future prospects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• company's capital expenditures and other investment plans

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• other investment and growth plans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• dividend yields of comparable companies globally;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• restrictions on payment of dividend that may be imposed on us by financing arrangements; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the general economic and business conditions and other factors deemed relevant by our board of directors and statutory restrictions on the payment of dividends.

#### Liquidation
On a winding-up or other return of capital, subject to any special rights attaching to any other class of shares, holders of ordinary shares will be entitled to participate in any surplus assets in proportion to their shareholdings, held by them at the commencement of the winding-up, subject to a deduction from those shares in respect of which there are monies due, of all monies payable to the company for unpaid calls or otherwise. Subject to the restrictions contained in the Second Amended and Restated Memorandum of Association and Amended and Restated Articles of Association and the rules or regulations of the Nasdaq or any relevant securities laws, any company shareholders may transfer all or any of his or her ordinary shares by an instrument of transfer in the usual or common form or in a form prescribed by the Nasdaq or in any other form approved by the company's directors. However, the company's directors may, in their absolute discretion, decline to register any transfer of ordinary shares, subject to any applicable requirements imposed from time to time by the United States Securities and Exchange Commission and the Nasdaq.

#### Redemption and Share Repurchase
Subject to the provisions of the Companies Act, the Company may issue shares that are to be redeemed or are liable to be redeemed at the option of the shareholder or the Company. The redemption of such shares will be effected in such manner and upon such other terms as the company's directors, determine before the issue of the shares. The Company may also purchase its own shares (including any redeemable shares) on such terms and in such manner as the directors may determine and agree with the relevant shareholder(s).

#### Shareholders Agreement
On September 15, 2022, an amended and restated shareholders agreement was entered into by and between Merqueo S.A.S. and its shareholders, which consists of holders of ordinary shares and preferred shares. In connection with the Corporate Reorganization, on December 19, 2022, Merqueo Holdings entered into a shareholders agreement with its shareholders and upon entry into this shareholders agreement, the previous shareholders agreement entered into on September 15, 2022 was terminated. Merqueo Holdings' shareholders agreement provides for certain shareholders' rights, including appointment of members of the board of directors, pre-emptive rights, tag-along, and drag-along rights. The shareholders agreement also provides for certain special voting majorities. These shareholders' rights will terminate upon successful completion of our initial public offering.

#### Directors
Our board of directors currently consists of 7 directors, all of whom are appointed pursuant to the Second Amended and Restated Memorandum of Association and Amended and Restated Articles of Association and can resign or be removed in accordance with the Second Amended and Restated Memorandum of Association and Amended and Restated Articles of Association. The Second Amended and Restated Memorandum of Association and Amended and Restated Articles of Association provides that the minimum number of directors shall be one and no maximum is applicable.

There is no cumulative voting with respect to the appointment of Merqueo directors.

The Second Amended and Restated Memorandum of Association and Amended and Restated Articles of Association do not provide a set age requirement regarding the retirement of Merqueo's directors or (subject to any shareholders' ordinary resolution to the contrary) any shareholding requirement for directors to be appointed.

Nominations of any person for election to the company's board of directors shall be in accordance with the applicable provisions in the Second Amended and Restated Memorandum of Association and Amended and Restated Articles of Association.

#### Corporate Opportunity
The directors have a duty not to put themselves in a position of conflict and this includes a duty not to engage in self-dealing, or to otherwise benefit as a result of their position. However, in some instances what would otherwise

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be a breach of this duty can be forgiven and/or authorized in advance by the shareholders provided that there is full disclosure by the directors. This can be done by way of permission granted in the Memorandum or Articles of Association or alternatively by shareholder approval at general meetings.

#### Register of Shareholders
The ordinary shares will be held through DTC, and DTC or Cede & Co., as nominee for DTC, will be recorded in the shareholders' register as the holder of the ordinary shares.

Under Cayman Islands law, we must keep a register of shareholders that includes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the names and addresses of the shareholders, a statement of the shares held by each member, and of the amount paid or agreed to be considered as paid, on the shares of each member;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• whether voting rights attach to the shares in issue;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the date on which the name of any person was entered on the register as a member; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the date on which any person ceased to be a member.

Under Cayman Islands law, our register of shareholders is prima facie evidence of the matters set out therein (*i.e.,* the register of shareholders will raise a rebuttable presumption) and a shareholder registered in the register of shareholders is deemed as a matter of Cayman Islands law to have prima facie legal title to the shares as set against that person's name in the register of shareholders. Upon the completion of the proposed transaction, the register of shareholders will be immediately updated to record and give effect to the issuance of new ordinary shares in the proposed transaction. Once the register of shareholders has been updated, the shareholders recorded in the register of shareholders should be deemed to have legal title to the shares set against their name.

However, there are certain limited circumstances where an application may be made to a Cayman Islands court for a determination on whether the register of members reflects the correct legal position. Further, the Cayman Islands court has the power to order that the register of members maintained by a company should be rectified where it considers that the register of members does not reflect the correct legal position. If an application for an order for rectification of the register of members were made in respect of our ordinary shares, then the validity of such shares may be subject to re-examination by a Cayman Islands court.

#### Exempted Company
We are an exempted company, incorporated with limited liability under the Cayman Companies Act. The Cayman Companies Act distinguishes between ordinary resident companies and exempted companies. Where the proposed activities of a company are to be carried out mainly outside of the Cayman Islands, the registrant can apply for registration as an exempted company. The requirements for an exempted company are essentially the same as for an ordinary company except for the exemptions and privileges listed below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an exempted company does not have to file an annual return of its shareholders with the Registrar of Companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an exempted company's register of shareholders is not open to inspection;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an exempted company does not have to hold an annual general meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an exempted company may obtain an undertaking against the imposition of any future taxation (such undertakings are usually given for 20 years in the first instance);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an exempted company may register by way of continuation in another jurisdiction and be deregistered in the Cayman Islands;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an exempted company may register as a limited duration company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an exempted company may register as a segregated portfolio company.

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"Limited liability" means that the liability of each shareholder is limited to the amount unpaid by the shareholder on the shares of the company (except in exceptional circumstances, such as involving fraud, the establishment of an agency relationship or an illegal or improper purpose or other circumstances in which a court may be prepared to pierce or lift the corporate veil).

#### Differences in Corporate Law
The Cayman Companies Act was modeled originally after similar laws in England and Wales but does not follow subsequent statutory enactments in England and Wales. In addition, the Cayman Companies Act differs from laws applicable to U.S. corporations and their shareholders. Set forth below is a summary of the significant differences between the provisions of the Cayman Companies Act applicable to us and the laws applicable to companies incorporated in the United States and their shareholders.

#### Mergers and Similar Arrangements
In certain circumstances, the Cayman Companies Act permits mergers or consolidations between two Cayman Islands companies, or between a Cayman Islands company and a company incorporated in another jurisdiction (provided that is facilitated by the laws of that other jurisdiction).

Where the merger or consolidation is between two Cayman Islands companies, the directors of each company must approve a written plan of merger or consolidation, which must then be authorized by (a) a special resolution of the shareholders of each company, and (b) such other authorization, if any, as may be specified in such constituent company's articles of association. No shareholder resolution is required for a merger between a parent company (*i.e.,* a company that owns at least 90% of the issued shares of each class in a subsidiary company) and its subsidiary company. The consent of each holder of a fixed or floating security interest of a constituent company must be obtained, unless the court waives such requirement. If the Cayman Islands Registrar of Companies is satisfied that the requirements of the Cayman Companies Act (which includes certain other formalities) have been complied with, the Registrar of Companies will register the plan of merger or consolidation. Where the merger or consolidation involves a foreign company, the procedure is similar, save that with respect to the foreign company, the director of the Cayman Islands company is required to make a declaration to the effect that, having made due enquiry, the director is of the opinion that the requirements set out below have been met: (i) that the merger or consolidation is permitted or not prohibited by the constitutional documents of the foreign company and by the laws of the jurisdiction in which the foreign company is incorporated, and that those laws and any requirements of those constitutional documents have been or will be complied with, (ii) that no petition or other similar proceeding has been filed and remains outstanding or order made or resolution adopted to wind up or liquidate the company in any foreign jurisdictions, (iii) that no receiver, trustee, administrator or other similar person has been appointed in any jurisdiction and is acting in respect of the foreign company, its affairs or property or any part thereof, and (iv) that no scheme, order, compromise or similar arrangement has been entered into or made in any jurisdiction whereby the rights of creditors of the foreign company are and continue to be suspended or restricted.

Where the surviving company is the Cayman Islands company, the director of the Cayman Islands company is further required to make a declaration to the effect that, having made due enquiry, the director is of the opinion that the requirements set out below have been met: (i) that the foreign company is able to pay its debts as they fall due and that the merger or consolidated is bona fide and not intended to defraud unsecured creditors of the foreign company, (ii) that in respect of the transfer of any security interest granted by the foreign company to the surviving or consolidated company (a) consent or approval to the transfer has been obtained, released or waived, (b) the transfer is permitted by and has been approved in accordance with the constitutional documents of the foreign company, and (c) the laws of the jurisdiction of the foreign company with respect to the transfer have been or will be complied with, (iii) that the foreign company will, upon the merger or consolidation becoming effective, cease to be incorporated, registered or exist under the laws of the relevant foreign jurisdiction, and (iv) that there is no other reason why it would be against the public interest to permit the merger or consolidation.

Where the above procedures are adopted, the Cayman Companies Act provides for a right of dissenting shareholders to be paid a payment of the fair value of his shares upon their dissenting to the merger or consolidation if they follow a prescribed procedure. In essence, that procedure is as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the shareholder must give the shareholder's written objection to the merger or consolidation to the constituent company before the vote on the merger or consolidation, including a statement that the shareholder proposes to demand payment for the shareholder's shares if the merger or consolidation is authorized by the vote;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) within 20 days following the date on which the merger or consolidation is approved by the shareholders, the constituent company must give written notice to each shareholder who made a written objection;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a shareholder must within 20 days following receipt of such notice from the constituent company, give the constituent company a written notice of the shareholder's intention to dissent including, among other details, a demand for payment of the fair value of his shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) within seven days following the date of the expiration of the period set out in paragraph (b) above or seven days following the date on which the plan of merger or consolidation is filed, whichever is later, the constituent company, the surviving company or the consolidated company must make a written offer to each dissenting shareholder to purchase the shareholder's shares at a price that the company determines is the fair value and if the company and the shareholder agree the price within 30 days following the date on which the offer was made, the company must pay the shareholder such amount;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) if the company and the shareholder fail to agree a price within such 30-day period, within 20 days following the date on which such 30-day period expires, the company (and any dissenting shareholder) must file a petition with the Cayman Islands Grand Court to determine the fair value and such petition must be accompanied by a list of the names and addresses of the dissenting shareholders with whom agreements as to the fair value of their shares have not been reached by the company. At the hearing of that petition, the court has the power to determine the fair value of the shares together with a fair rate of interest, if any, to be paid by the company upon the amount determined to be the fair value.

Any dissenting shareholder whose name appears on the list filed by the company may participate fully in all proceedings until the determination of fair value is reached. These rights of a dissenting shareholder are not be available in certain circumstances, for example, to dissenters holding shares of any class in respect of which an open market exists on a recognized stock exchange or recognized interdealer quotation system at the relevant date or where the consideration for such shares to be contributed are shares of any company listed on a national securities exchange or shares of the surviving or consolidated company.

Moreover, Cayman Islands law also has separate statutory provisions that facilitate the reconstruction or amalgamation of companies. In certain circumstances, schemes of arrangement will generally be more suited for complex mergers or other transactions involving widely held companies, commonly referred to in the Cayman Islands as a "scheme of arrangement," which may be tantamount to a merger. In the event that a merger is sought pursuant to a scheme of arrangement (the procedures of which are more rigorous and take longer to complete than the procedures typically required to consummate a merger in the United States), the arrangement in question must be approved by a majority in number of each class of shareholders and creditors with whom the arrangement is to be made, and who must in addition represent three-fourths in value of each such class of shareholders or creditors, as the case may be, that are present and voting either in person or by proxy at a meeting, or meetings summoned for that purpose. The convening of the meetings and subsequently the terms of the arrangement must be sanctioned by the Grand Court of the Cayman Islands. While a dissenting shareholder would have the right to express to the court the view that the transaction should not be approved, the court can be expected to approve the arrangement if it satisfies itself that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we are not proposing to act illegally or beyond the scope of our corporate authority and the statutory provisions as to majority vote have been complied with;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the shareholders have been fairly represented at the meeting in question;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the arrangement is such as a businessman would reasonably approve; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the arrangement is not one that would more properly be sanctioned under some other provision of the Cayman Companies Act or that would amount to a "fraud on the minority."

If a scheme of arrangement or takeover offer (as described below) is approved, any dissenting shareholder would have no rights comparable to appraisal rights, which would otherwise ordinarily be available to dissenting shareholders of U.S. corporations, providing rights to receive payment in cash for the judicially determined value of the shares.

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#### Squeeze-out Provisions
When a takeover offer is made and accepted by holders of 90.0% of the shares to whom the offer is made within four months, the offer or may, within a two-month period, require the holders of the remaining shares to transfer such shares on the terms of the offer. An objection may be made to the Grand Court of the Cayman Islands but is unlikely to succeed unless there is evidence of fraud, bad faith, collusion or inequitable treatment of the shareholders.

If the arrangement and reconstruction is thus approved, the dissenting shareholder would have no rights comparable to appraisal rights, which might otherwise ordinarily be available to dissenting shareholders of United States corporations and allow such dissenting shareholders to receive payment in cash for the judicially determined value of the shares. However, appraisal rights would also not be available to shareholders of a Delaware target in a business combination transaction if the shares of the target were listed on a national securities exchange and target shareholders receive only shares of a corporation which shares are also listed on a national securities exchange.

Further, transactions similar to a merger, reconstruction and/or an amalgamation may in some circumstances be achieved through other means to these statutory provisions, such as a share capital exchange, asset acquisition or control, through contractual arrangements, of an operating business.

#### Shareholders' Suits
Conyers Dill & Pearman LLP, our Cayman Islands counsel, is not aware of any reported class action having been brought in a Cayman Islands court. However, a class action suit could nonetheless be brought in the United States courts pursuant to an alleged violation of the securities laws in the United States.

A shareholder of a Delaware corporation has the right to bring a derivative action on behalf of the corporation if the shareholder was a shareholder of the corporation at the time of the transaction in question. Derivative actions have been brought in the Cayman Islands courts, and the Cayman Islands courts have confirmed the availability for such actions. In most cases, we will be the proper plaintiff in any claim based on a breach of duty owed to us, and a claim against (for example) our officers or directors usually may not be brought by a shareholder. However, based on English authorities, which would in all likelihood be of persuasive authority and be applied by a court in the Cayman Islands, exceptions to the foregoing principle apply in circumstances in which:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a company is acting or proposing to act illegally or beyond the scope of its authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the act complained of, although not beyond the scope of the authority, could be effected if duly authorized by more than the number of votes which have actually been obtained; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• those who control the company are perpetrating a "fraud on the minority."

A shareholder may have a direct right of action against us where the individual rights of that shareholder have been infringed or are about to be infringed.

#### Directors' Fiduciary Duties
As a matter of Cayman Islands law, a director of a Cayman Islands company owe certain fiduciary duties to such company. Accordingly, directors and officers owe the following fiduciary duties:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• duty to act in good faith in what the director or officer believes to be in the best interests of the company as a whole;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• duty to exercise powers for the purposes for which those powers were conferred and not for a collateral purpose;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• directors should not improperly fetter the exercise of future discretion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• duty to exercise powers fairly as between different sections of shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• duty not to put themselves in a position in which there is a conflict between their duty to the company and their personal interests; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• duty to exercise independent judgment.

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However, this obligation may be varied by the company's articles of association, which may permit a director to vote on a matter in which the director has a personal interest provided that the director has disclosed that nature of his interest to the board of directors. With respect to the duty of directors to avoid conflicts of interest, our Second Amended and Restated Memorandum of Association and Amended and Restated Articles of Association vary from the applicable provisions of Cayman Islands law mentioned above by providing that a director must disclose the nature and extent of the director's interest in any contract or arrangement, and following such disclosure and subject to any separate requirement under applicable law or applicable listing rules, and unless disqualified by the chairman of the relevant meeting, such director may vote in respect of any transaction or arrangement in which the director is interested and may be counted in the quorum at the meeting.

In addition to the above, under Cayman Islands law, directors also owe a duty of care which is not fiduciary in nature. This duty has been defined as a requirement to act as a reasonably diligent person having both the general knowledge, skill and experience that may reasonably be expected of a person carrying out the same functions as are carried out by that director in relation to the company and the general knowledge skill and experience which that director has.

As set out above, directors have a duty not to put themselves in a position of conflict and this includes a duty not to engage in self-dealing, or to otherwise benefit as a result of their position. However, in some instances what would otherwise be a breach of this duty can be forgiven and/or authorized in advance by the shareholders provided that there is full disclosure by the directors. This can be done by way of permission granted in the memorandum and articles of association or alternatively by shareholder approval at general meetings. Accordingly, as a result of multiple business affiliations, our officers and directors may have similar legal obligations relating to presenting business opportunities meeting the above-listed criteria to multiple entities. In addition, conflicts of interest may arise when our board evaluates a particular business opportunity with respect to the above-listed criteria. However, under our Second Amended and Restated Memorandum of Association and Amended and Restated Articles of Association, we renounced our interest in any corporate opportunity offered to any director or officer. Additionally, any such director or officer shall be permitted to pursue competing opportunities without any liability to us. Furthermore, each of our officers and directors may have pre-existing fiduciary obligations to other businesses of which they are officers or directors.

A director of a Cayman Islands company also owes to the company duties to exercise independent judgment in carrying out his functions and to exercise reasonable skill, care and diligence, which has both objective and subjective elements. Recent Cayman Islands case law confirmed that directors must exercise the care, skill and diligence that would be exercised by a reasonably diligent person having the general knowledge, skill and experience reasonably to be expected of a person acting as a director. Additionally, a director must exercise the knowledge, skill and experience which the director actually possesses.

A general notice may be given to the board of directors to the effect that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the director is a member or officer of a specified company or firm and is to be regarded as interested in any contract or arrangement which may after the date of the notice be made with that company or firm; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the director is to be regarded as interested in any contract or arrangement which may after the date of the notice to the board of directors be made with a specified person who is connected with the director, will be deemed sufficient declaration of interest.

This notice shall specify the nature of the interest in question. Following the disclosure being made pursuant to our Second Amended and Restated Memorandum of Association and Amended and Restated Articles of Association and subject to any separate requirement under applicable law or applicable listing rules, and unless disqualified by the chairman of the relevant meeting, a director may vote in respect of any transaction or arrangement in which the director is interested and may be counted in the quorum at the meeting.

In comparison, under Delaware corporate law, a director of a Delaware corporation has a fiduciary duty to the corporation and its shareholders. This duty has two components: the duty of care and the duty of loyalty. The duty of care requires that a director act in good faith, with the care that an ordinarily prudent person would exercise under similar circumstances. Under this duty, directors must inform themselves of, and disclose to shareholders, all material information reasonably available regarding a significant transaction. The duty of loyalty requires that directors act in a manner they reasonably believe to be in the best interests of the corporation. They must not use their corporate position for personal gain or advantage. This duty prohibits self-dealing by a director and mandates that the best interest of the corporation and its shareholders take precedence over any interest possessed by a director,

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officer or controlling shareholder and not shared by the shareholders generally. In general, actions of a director are presumed to have been made on an informed basis, in good faith and in the honest belief that the action taken was in the best interests of the corporation. However, this presumption may be rebutted by evidence of a breach of one of the fiduciary duties. Should such evidence be presented concerning a transaction by a director, a director must prove the procedural fairness of the transaction, and that the transaction was of fair value to the corporation.

#### General Meetings of Shareholders
Under the Delaware General Corporation Law, a corporation may eliminate the right of shareholders to act by written consent by amendment to its certificate of incorporation. Cayman Islands law and the Second Amended and Restated Memorandum of Association and Amended and Restated Articles of Association provide that shareholders may approve corporate matters by way of a unanimous written resolution signed by or on behalf of each shareholder who would have been entitled to vote on such matter at a general meeting without a meeting being held.

As a Cayman Islands exempted company, Merqueo is not obliged by law to call shareholders' annual general meetings. Merqueo, however, will hold an annual shareholders' meeting during each fiscal year, as required by the Nasdaq.

Under the Second Amended and Restated Memorandum of Association and Amended and Restated Articles of Association, Merqueo will hold a general meeting as its annual general meeting each year, and shall specify the meeting as such in the notices calling it. Any annual general meeting shall be held at such time and place as the company's directors approve. At these meetings the report of the directors of the company (if any) shall be presented. The notice of any general meeting of shareholders, shall be in accordance with the Second Amended and Restated Memorandum of Association and Amended and Restated Articles of Association.

The board of directors of Merqueo may call an extraordinary general meeting for any purpose or purposes at any time by a resolution adopted by the majority of the company's directors, and may not be called by any other person or persons. The company's directors acting pursuant to a resolution may postpone, reschedule or cancel any previously scheduled extraordinary general meeting, before or after the notice for such meeting has been sent. Business transacted at any extraordinary general meeting shall be limited to matters relating to the purpose or purposes stated in the notice of meeting.

#### Shareholder Proposals
Under the Delaware General Corporation Law, a shareholder has the right to put any proposal before the annual meeting of shareholders, provided it complies with the notice provisions in the governing documents. The Delaware General Corporation Law does not provide shareholders an express right to put any proposal before the annual meeting of shareholders, but Delaware corporations generally afford shareholders an opportunity to make proposals and nominations provided that they comply with the notice provisions in the certificate of incorporation or bylaws. A special meeting may be called by the board of directors or any other person authorized to do so in the governing documents, but shareholders may be precluded from calling special meetings.

The Cayman Companies Act provides shareholders with only limited rights to requisition a general meeting, and does not provide shareholders with any right to put any proposal before a general meeting. However, these rights may be provided in a company's articles of association. The Second Amended and Restated Memorandum of Association and Amended and Restated Articles of Association provides that no business may be transacted at any extraordinary general meeting other than the business specified in the notice of such meeting. The company's board of directors may postpone, reschedule or cancel any previously scheduled extraordinary general meeting. However, at an annual general meeting of the company, only such business shall be conducted as shall have been properly brought before the meeting. For business to be properly brought before an annual general meeting by a shareholder of the company, the company's shareholder must (i) provide Timely Notice (as defined in the Second Amended and Restated Memorandum of Association and Amended and Restated Articles of Association) thereof in writing and in proper form to the company's directors and (ii) provide any updates or supplements to such notice at the times and in the forms required under the Second Amended and Restated Memorandum of Association and Amended and Restated Articles of Association.

As a Cayman Islands exempted company, Merqueo is not obliged by law to call shareholders' annual general meetings. Merqueo, however, will hold an annual shareholders' meeting during each fiscal year, as required by Nasdaq.

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#### Cumulative Voting
Under the Delaware General Corporation Law, cumulative voting for elections of directors is not permitted unless the corporation's certificate of incorporation specifically provides for it. Cumulative voting potentially facilitates the representation of minority shareholders on a board of directors since it permits the minority shareholder to cast all the votes to which the shareholder is entitled on a single director, which increases the shareholder's voting power with respect to electing such director. As permitted under Cayman Islands law, the Second Amended and Restated Memorandum of Association and Amended and Restated Articles of Association does not provide for cumulative voting. As a result, our shareholders are not afforded any less protections or rights on this issue than shareholders of a Delaware corporation.

#### Transactions with Interested Shareholders
The Delaware General Corporation Law contains a business combination statute applicable to Delaware corporations whereby, unless the corporation has specifically elected not to be governed by such statute by amendment to its certificate of incorporation, it is prohibited from engaging in certain business combinations with an "interested shareholder" for three years following the date that such person becomes an interested shareholder. An interested shareholder generally is a person or group who owns or owned 15% or more of the target's outstanding voting shares within the past three years. This has the effect of limiting the ability of a potential acquiror to make a two-tiered bid for the target in which all shareholders would not be treated equally. The statute does not apply if, among other things, prior to the date on which such shareholder becomes an interested shareholder, the board of directors approves either the business combination or the transaction which resulted in the person becoming an interested shareholder. This encourages any potential acquiror of a Delaware corporation to negotiate the terms of any acquisition transaction with the target's board of directors.

Cayman Islands law has no comparable statute. As a result, we cannot avail ourselves of the types of protections afforded by the Delaware business combination statute. However, although Cayman Islands law does not regulate transactions between a company and its significant shareholders, it does provide that the board of directors owes duties to ensure that these transactions are entered into *bona fide* in the best interests of the company and for a proper corporate purpose and, as noted above, a transaction may be subject to challenge if it has the effect of constituting a fraud on the minority shareholders.

#### Dissolution; Winding Up
Under the Delaware General Corporation Law, unless the board of directors approves the proposal to dissolve, dissolution must be approved by shareholders holding 100% of the total voting power of the corporation. If the dissolution is initiated by the board of directors it may be approved by a simple majority of the corporation's outstanding shares. Delaware law allows a Delaware corporation to include in its certificate of incorporation a supermajority voting requirement in connection with dissolutions initiated by the board. Under Cayman Islands law, a company may be wound up by either an order of the courts of the Cayman Islands or by a special resolution of its members or, if the company resolves by ordinary resolution that it be wound up because it is unable to pay its debts as they fall due. The court has authority to order winding up in a number of specified circumstances including where it is, in the opinion of the court, just and equitable to do so.

Under the Cayman Companies Act, we may be dissolved, liquidated or wound up by either an order of the courts of the Cayman Islands or by a special resolution of shareholders (requiring a two-thirds majority vote of those shareholders attending and voting at a quorate meeting), or if the company is unable to pay its debt as they fall due, by an ordinary resolution of its members. The court has authority to order winding up in a number of specified circumstances including where it is, in the opinion of the court, just and equitable to do so.

#### Amendment of Governing Documents
Under the Delaware General Corporation Law, a corporation's governing documents may be amended with the approval of a majority of the outstanding shares entitled to vote, unless the certificate of incorporation provides otherwise. Under Cayman Islands law, the Second Amended and Restated Memorandum of Association and Amended and Restated Articles of Association generally may only be amended by special resolution of shareholders (requiring a two-thirds majority vote of those shareholders attending and voting at a quorate meeting).

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#### Indemnification of Directors and Executive Officers and Limitation of Liability
The Cayman Companies Act does not limit the extent to which a company's articles of association may provide for indemnification of directors and officers, except to the extent that it may be held by the Cayman Islands courts to be contrary to public policy, such as to provide indemnification against civil fraud or the consequences of committing a crime. The Second Amended and Restated Memorandum of Association and Amended and Restated Articles of Association provides that we shall indemnify and hold harmless our directors and officers against all actions, proceedings, costs, charges, expenses, losses, damages, liabilities, judgments, fines, settlements and other amounts incurred or sustained by such directors or officers, other than by reason of such person's dishonesty, willful default or fraud, in or about the conduct of our company's business or affairs (including as a result of any mistake of judgment) or in the execution or discharge of his duties, powers, authorities or discretions, including without prejudice to the generality of the foregoing, any costs, expenses, losses or liabilities incurred by such director or officer in defending (whether successfully or otherwise) any civil, criminal or other proceedings concerning ourselves or our affairs in any court whether in the Cayman Islands or elsewhere. This standard of conduct is generally the same as permitted under the Delaware General Corporation Law for a Delaware corporation.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to our directors, officers or persons controlling us under the foregoing provisions, we have been informed that, in the opinion of the SEC, this indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.

#### Rights of Non-Resident or Foreign Shareholders
There are no limitations imposed by our Second Amended and Restated Memorandum of Association and Amended and Restated Articles of Association on the rights of non-resident or foreign shareholders to hold or exercise voting rights of our shares. In addition, there are no provisions in our Second Amended and Restated Memorandum of Association and Amended and Restated Articles of Association governing the ownership threshold above which shareholder ownership must be disclosed.

#### Inspection of Books and Records
Holders of our shares have no general right under Cayman Islands law to inspect or obtain copies of the list of shareholders, register of members or our corporate records. However, our board of directors may determine from time to time whether and to what extent our accounting records and books shall be open to inspection by shareholders.

#### Handling of Mail
Mail addressed to us and received at our registered office will be forwarded unopened to the forwarding address, which will be supplied by us. None of us, our directors, officers, advisors or service providers (including the organization which provides registered office services in the Cayman Islands) will bear any responsibility for any delay howsoever caused in mail reaching the forwarding address.

#### Anti-Money Laundering — Cayman Islands
In order to comply with legislation or regulations aimed at the prevention of money laundering, we may be required to adopt and maintain anti-money laundering procedures, and may require subscribers to provide evidence to verify their identity. Where permitted, and subject to certain conditions, we may also delegate the maintenance of our anti-money laundering procedures (including the acquisition of due diligence information) to a suitable person.

We reserve the right to request such information as is necessary to verify the identity of a subscriber. In the event of delay or failure on the part of the subscriber in producing any information required for verification purposes, we may refuse to accept the application, in which case any funds received will be returned without interest to the account from which they were originally debited.

We also reserve the right to refuse to make any redemption payment to a shareholder if directors or officers suspect or are advised that the payment of redemption proceeds to such shareholder might result in a breach of applicable anti-money laundering or other laws or regulations by any person in any relevant jurisdiction, or if such refusal is considered necessary or appropriate to ensure compliance with any such laws or regulations in any applicable jurisdiction.

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If any person in the Cayman Islands knows or suspects or has reasonable grounds for knowing or suspecting that another person is engaged in criminal conduct or money laundering or is involved with terrorism or terrorist financing and property and the information for that knowledge or suspicion came to their attention in the course of business in the regulated sector, or other trade, profession, business or employment, the person will be required to report such knowledge or suspicion to (i) the Financial Reporting Authority of the Cayman Islands, pursuant to the Proceeds of Crime Act (2020 Revision) of the Cayman Islands if the disclosure relates to criminal conduct or money laundering, or (ii) a police officer of the rank of constable or higher, or the Financial Reporting Authority, pursuant to the Terrorism Act (2018 Revision) of the Cayman Islands, if the disclosure relates to involvement with terrorism or terrorist financing and property. Such a report shall not be treated as a breach of confidence or of any restriction upon the disclosure of information imposed by any enactment or otherwise.

#### Cayman Islands Data Protection
We have certain duties under the Data Protection Act (As Revised) of the Cayman Islands ("DPA"), based on internationally accepted principles of data privacy.

#### Privacy Notice
This privacy notice puts our shareholders on notice that through your investment in us you will provide us with certain personal information which constitutes personal data within the meaning of the DPA, or personal data.

#### Investor Data
We will collect, use, disclose, retain and secure personal data to the extent reasonably required only and within the parameters that could be reasonably expected during the normal course of business. We will only process, disclose, transfer or retain personal data to the extent legitimately required to conduct our activities on an ongoing basis or to comply with legal and regulatory obligations to which we are subject. We will only transfer personal data in accordance with the requirements of the DPA, and will apply appropriate technical and organizational information security measures designed to protect against unauthorized or unlawful processing of the personal data and against the accidental loss, destruction or damage to the personal data.

In our use of this personal data, we will be characterized as a "data controller" for the purposes of the DPA, while our affiliates and service providers who may receive this personal data from us in the conduct of our activities may either act as our "data processors" for the purposes of the DPA or may process personal information for their own lawful purposes in connection with services provided to us.

We may also obtain personal data from other public sources. Personal data includes, without limitation, the following information relating to a shareholder and/or any individuals connected with a shareholder as an investor: name, residential address, email address, contact details, corporate contact information, signature, nationality, place of birth, date of birth, tax identification, credit history, correspondence records, passport number, bank account details, source of funds details and details relating to the shareholder's investment activity.

#### Who this Affects
If you are a natural person, this will affect you directly. If you are a corporate investor (including, for these purposes, legal arrangements such as trusts or exempted limited partnerships) that provides us with personal data on individuals connected to you for any reason in relation your investment in us, this will be relevant for those individuals and you should transmit the content of this Privacy Notice to such individuals or otherwise advise them of its content.

#### How We May Use a Shareholder's Personal Data
We may, as the data controller, collect, store and use personal data for lawful purposes, including, in particular: (i) where this is necessary for the performance of our rights and obligations under any agreements, (ii) where this is necessary for compliance with a legal and regulatory obligation to which we are or may be subject (such as compliance with anti-money laundering and FATCA/CRS requirements), and/or (iii) where this is necessary for the purposes of our legitimate interests and such interests are not overridden by your interests, fundamental rights or freedoms.

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Should we wish to use personal data for other specific purposes (including, if applicable, any purpose that requires your consent), we will contact you.

#### Why We May Transfer Your Personal Data
In certain circumstances we may be legally obliged to share personal data and other information with respect to your shareholding with any relevant regulatory or tax authorities such as the Cayman Islands Monetary Authority or the Tax Information Authority. They, in turn, may exchange this information with foreign authorities, including the Internal Revenue Service and any other relevant tax authority.

We anticipate disclosing personal data to persons who provide services to us and their respective affiliates (which may include certain entities located outside the US, the Cayman Islands or the European Economic Area), who will process your personal data on our behalf.

#### The Data Protection Measures We Take
Any transfer of personal data by us or our duly authorized affiliates and/or delegates outside of the Cayman Islands shall be in accordance with the requirements of the DPA.

We and our duly authorized affiliates and/or delegates shall apply appropriate technical and organizational information security measures designed to protect against unauthorized or unlawful processing of personal data, and against accidental loss or destruction of, or damage to, personal data.

We shall notify you of any personal data breach that is reasonably likely to result in a risk to your interests, fundamental rights or freedoms or those data subjects to whom the relevant personal data relates.

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#### Shares Eligible for Future Sale
Prior to this Offering, there has been no public market for our ordinary shares. Future sales of substantial amounts of our ordinary shares, including shares issued upon exercise of outstanding share options, in the public market following this Offering could adversely affect market prices prevailing from time to time and could impair our ability to raise equity capital in the future.

Upon the completion of this Offering, based on the number of our ordinary shares outstanding as of , we will have a total of ordinary shares outstanding. Of these outstanding shares, all of the shares sold in this Offering will be freely tradable, except that any shares purchased in this Offering by our affiliates, as that term is defined in Rule 144 under the Securities Act would only be able to be sold in compliance with the Rule 144 limitations described below.

The remaining outstanding ordinary shares will be deemed "restricted securities" as defined in Rule 144 under the Securities Act. Restricted securities may be sold in the public market only if they are registered under the Securities Act and may be resold only after registration under the Securities Act or pursuant to an exemption from such registration, including, among others, the exemptions provided by Rules 144 and 701 under the Securities Act, which rules are summarized below.

#### Rule 144
In general, under Rule 144, persons who became the beneficial owners of our ordinary shares prior to the completion of this Offering may not sell their shares until the earlier of (i) the expiration of a six-month holding period, if we have been subject to the reporting requirements of the Exchange Act and have filed all required reports for at least 90 days prior to the date of the sale, or (ii) a one-year holding period.

At the expiration of the six-month holding period, a person who was not one of our affiliates at any time during the three months preceding a sale is entitled to sell an unlimited number of our ordinary shares provided current public information about us is available, and a person who was one of our affiliates at any time during the three months preceding a sale is entitled to sell within any three-month period only a number of ordinary shares that does not exceed the greater of either of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• one percent of the number of shares of our ordinary shares then outstanding; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the average weekly trading volume of our ordinary shares during the four calendar weeks preceding the filing of a notice on Form 144 with the SEC with respect to that sale.

At the expiration of the one-year holding period, a person who was not one of our affiliates at any time during the three months preceding a sale would be entitled to sell an unlimited number of our ordinary shares without restriction. A person who was one of our affiliates at any time during the three months preceding a sale would remain subject to the volume restrictions described above.

Sales under Rule 144 by our affiliates or persons selling shares on behalf of our affiliates are also subject to certain manner of sale provisions and notice requirements and to the availability of current public information about us.

#### Rule 701
In general, under Rule 701, any of our employees, directors, officers, consultants or advisors who purchased shares from us in connection with a compensatory stock or option plan or other written agreement before the effective date of our initial public offering, or who purchased shares from us after that date upon the exercise of options granted before that date, are eligible to resell such shares in reliance upon Rule 144 beginning 90 days after the date of this prospectus. If such person is not an affiliate, the sale may be made without compliance with its holding period or current public information requirement. If such a person is an affiliate, the sale may be made under Rule 144 without compliance with its holding period, but subject to the other Rule 144 restrictions.

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#### Lock-Up Agreements
All of our directors and officers are subject to lock-up agreements or market stand-off provisions that, subject to exceptions described under "Underwriters" below, prohibit them from offering for sale, selling, contracting to sell, pledging, granting any option for the sale of, making any short sale of, transferring or otherwise disposing of any ordinary shares, share options, or any security or instrument related to our ordinary shares or share options for a period of at least 180 days following the date of this prospectus, without the prior written consent of the underwriters. These agreements are subject to certain customary exceptions. See "Underwriters" for additional information.

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#### Taxation

#### Cayman Islands Tax Considerations
The following summary contains a description of certain Cayman Islands tax consequences of the acquisition, ownership and disposition of our ordinary shares, but it does not purport to be a comprehensive description of all the tax considerations that may be relevant to a decision to purchase our ordinary shares. The summary is based upon the tax laws of Cayman Islands and regulations thereunder as of the date hereof, which are subject to change. If you are considering the purchase of our ordinary shares, you should consult your own tax advisors concerning the particular tax consequences to you of the purchase, ownership and disposition of our ordinary shares, as well as the consequences to you arising under the laws of your country of citizenship, residence or domicile.

The following is a discussion of certain Cayman Islands income tax consequences of an investment in our ordinary shares. The discussion is a general summary of present law, which is subject to prospective and retroactive change. It is not intended to be tax advice, does not consider any investor's particular circumstances, and does not consider tax consequences other than those arising under Cayman Islands law.

*Under Existing Cayman Islands Laws*

Payments of dividends and capital in respect of our ordinary shares will not be subject to taxation in the Cayman Islands and no withholding will be required on the payment of interest and principal or a dividend or capital to any holder of our ordinary shares, as the case may be, nor will gains derived from the disposal of our ordinary shares be subject to Cayman Islands income or corporation tax. The Cayman Islands currently has no income, corporation or capital gains tax and no estate duty, inheritance tax or gift tax.

No stamp duty is payable in respect of the issue of ordinary shares or on an instrument of transfer in respect of an ordinary share.

We were incorporated under the laws of the Cayman Islands as an exempted company with limited liability and, as such, has received an undertaking from the Governor in Cabinet of the Cayman Islands in substantially the following form:

The Tax Concessions Act<br>(As Revised)<br>Undertaking as to Tax Concessions

In accordance with Section 6 of the Tax Concessions Act (As Revised) the Governor in Cabinet undertakes with the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) that no law which is hereafter enacted in the Islands imposing any tax to be levied on profits, income, gains or appreciations shall apply to us the Company or our operations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in addition, that no tax to be levied on profits, income, gains or appreciations or which is in the nature of estate duty or inheritance tax shall be payable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. on or in respect of the shares, debentures or other obligations of the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. by way of the withholding in whole or part, of any relevant payment as defined in the Tax Concessions Act.

These concessions shall be for a period of TWENTY years from September 16, 2022.

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#### U.S. Federal Income Tax Considerations
The following is a summary of material U.S. federal income tax considerations that are likely to be relevant to the purchase, ownership and disposition of our ordinary shares by a U.S. Holder (as defined below).

This summary is based on provisions of the Internal Revenue Code of 1986, as amended (the "Code"), and regulations, rulings and judicial interpretations thereof, in force as of the date hereof. Those authorities may be changed at any time, perhaps retroactively, so as to result in U.S. federal income tax consequences different from those summarized below.

This summary is not a comprehensive discussion of all of the tax considerations that may be relevant to a particular investor's decision to purchase, hold, or dispose of ordinary shares. In particular, this summary is directed only to U.S. Holders that hold ordinary shares as capital assets and does not address particular tax consequences that may be applicable to U.S. Holders who may be subject to special tax rules, such as banks, brokers or dealers in securities or currencies, traders in securities electing to mark to market, financial institutions, life insurance companies, tax-exempt entities, regulated investment companies, real estate investment trusts, entities or arrangements that are treated as partnerships for U.S. federal income tax purposes (or partners therein), holders that own or are treated as owning 10% or more of our stock by vote or value, persons holding ordinary shares as part of a hedging or conversion transaction or a straddle, persons whose functional currency is not the U.S. dollar, or persons holding our ordinary shares in connection with a trade or business outside the United States. Moreover, this summary does not address state, local or foreign taxes, the U.S. federal estate and gift taxes, the Medicare contribution tax applicable to net investment income of certain non-corporate U.S. Holders, or alternative minimum tax consequences of acquiring, holding or disposing of ordinary shares.

For purposes of this summary, a "U.S. Holder" is a beneficial owner of ordinary shares that is a citizen or resident of the United States or a U.S. domestic corporation or that otherwise is subject to U.S. federal income taxation on a net income basis in respect of such ordinary shares.

**You should consult your own tax advisors about the consequences of the acquisition, ownership, and disposition of the ordinary shares, including the relevance to your particular situation of the considerations discussed below and any consequences arising under foreign, state, local or other tax laws.**

*Taxation of Distributions*

Subject to the discussion below under "— Passive Foreign Investment Company Status," the gross amount of any distribution of cash or property with respect to our shares that is paid out of our current or accumulated earnings and profits (as determined for U.S. federal income tax purposes) will generally be includible in your taxable income as ordinary dividend income on the day on which you receive the dividend and will not be eligible for the dividends-received deduction allowed to corporations under the Code.

We do not expect to maintain calculations of our earnings and profits in accordance with U.S. federal income tax principles. U.S. Holders therefore should expect that distributions generally will be treated as dividends for U.S. federal income tax purposes.

Subject to certain exceptions for short-term positions, dividends received by an individual with respect to the shares will be subject to taxation at a preferential rate if the dividends are "qualified dividends." Dividends paid on the shares will be treated as qualified dividends if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the shares are readily tradable on an established securities market in the United States or we are eligible for the benefits of a comprehensive tax treaty with the United States that the U.S. Treasury determines is satisfactory for purposes of this provision and that includes an exchange of information program; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we were not, in the year prior to the year in which the dividend was paid, and are not, in the year in which the dividend is paid, a passive foreign investment company (a "PFIC").

The ordinary shares will be listed on the Nasdaq, and will qualify as readily tradable on an established securities market in the United States so long as they are so listed. Based on our audited financial statements and relevant market and shareholder data, we believe that we were not treated as a PFIC for U.S. federal income tax purposes with respect to our prior taxable year. In addition, based on our audited financial statements and our current expectations regarding the

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value and nature of our assets, the sources and nature of our income, and relevant market and shareholder data, we do not anticipate becoming a PFIC for our current taxable year or in the foreseeable future. Holders should consult their own tax advisors regarding the availability of the reduced dividend tax rate in light of their own particular circumstances.

U.S. Holders that receive distributions of additional shares or rights to subscribe for shares as part of a pro rata distribution to all our shareholders generally will not be subject to U.S. federal income tax in respect of the distributions, unless the U.S. Holder has the right to receive cash or property, in which case the U.S. Holder will be treated as if it received cash equal to the fair market value of the distribution.

*Taxation of Dispositions of Shares*

Subject to the discussion below under "— Passive Foreign Investment Company Status," upon a sale, exchange or other taxable disposition of the shares, U.S. Holders will realize gain or loss for U.S. federal income tax purposes in an amount equal to the difference between the amount realized on the disposition and the U.S. Holder's adjusted tax basis in the shares, as determined in U.S. dollars as discussed below. Such gain or loss will be capital gain or loss, and will generally be long-term capital gain or loss if the shares have been held for more than one year. Long-term capital gain realized by a U.S. Holder that is an individual generally is subject to taxation at a preferential rate. The deductibility of capital losses is subject to limitations.

Gain, if any, realized by a U.S. Holder on the sale or other disposition of the shares generally will be treated as U.S. source income.

*Passive Foreign Investment Company Status*

Special U.S. tax rules apply to companies that are considered to be PFICs. We will be classified as a PFIC in a particular taxable year if either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 75% or more of our gross income for the taxable year is passive income; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the average percentage of the value of our assets that produce or are held for the production of passive income is at least 50%.

For this purpose, passive income generally includes dividends, interest, gains from certain commodities transactions, rents, royalties and the excess of gains over losses from the disposition of assets that produce passive income.

We believe, and the following discussion assumes, that we were not a PFIC for our taxable year ending December 31, 2021 and that, based on the present composition of our income and assets and the manner in which we conduct our business, we will not be a PFIC in our current taxable year or in the foreseeable future. Whether we are a PFIC is a factual determination made annually, and our status could change depending, among other things, upon changes in the composition of our gross income and the relative quarterly average value of our assets. If we were a PFIC for any taxable year in which you hold ordinary shares, you generally would be subject to additional taxes on certain distributions and any gain realized from the sale or other taxable disposition of the ordinary shares regardless of whether we continued to be a PFIC in any subsequent year. You are encouraged to consult your own tax advisor as to our status as a PFIC, the tax consequences to you of such status, and the availability and desirability of making a mark-to-market election to mitigate the unfavorable rules mentioned in the preceding sentence.

Foreign Financial Asset Reporting

Individual U.S. Holders that own "specified foreign financial assets" with an aggregate value in excess of U.S.$50,000 on the last day of the taxable year, or U.S.$75,000 at any time during the taxable year, are generally required to file an information statement along with their tax returns, currently on Form 8938, with respect to such assets. "Specified foreign financial assets" include any financial accounts held at a non-U.S. financial institution, as well as securities issued by a non-U.S. issuer that are not held in accounts maintained by financial institutions. Higher reporting thresholds apply to certain individuals living abroad and to certain married individuals. Regulations extend this reporting requirement to certain entities that are treated as formed or availed of to hold direct or indirect interests in specified foreign financial assets based on objective criteria. U.S. Holders who fail to report the required

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information could be subject to substantial penalties. In addition, the statute of limitations for assessment of tax would be suspended, in whole or part. Prospective investors are encouraged to consult with their own tax advisors regarding the possible application of these rules, including the application of the rules to their particular circumstances.

*Backup Withholding and Information Reporting*

Dividends paid on, and proceeds from the sale or other disposition of, the shares to a U.S. Holder generally may be subject to the information reporting requirements of the Code and may be subject to backup withholding unless the U.S. Holder provides an accurate taxpayer identification number and makes any other required certification or otherwise establishes an exemption. Backup withholding is not an additional tax. The amount of any backup withholding from a payment to a U.S. Holder will be allowed as a refund or credit against the U.S. Holder's U.S. federal income tax liability, provided the required information is furnished to the U.S. Internal Revenue Service in a timely manner.

A holder that is not a U.S. Holder may be required to comply with certification and identification procedures in order to establish its exemption from information reporting and backup withholding.

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#### UnderwriterS
Aegis Capital Corp., or Aegis, is sole underwriter and book-runner of this Offering. Under the terms of an underwriting agreement, which will be filed as an exhibit to this registration statement, Aegis agrees to purchase from us the respective number of ordinary shares shown opposite its name below:

---

| | |
|:---|:---|
|  **Underwriter** | **Number of <br>Shares** |
|  Aegis Capital Corp.  |  |

---

The underwriting agreement provides that the underwriter's obligation to purchase the ordinary shares depends on the satisfaction of the conditions contained in the underwriting agreement including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the representations and warranties made by us to the underwriter are true;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• there is no material change in our business or the financial markets; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we deliver customary closing documents to the underwriter.

#### Underwriting Commissions and Discounts and Expenses
The following table shows the per Unit and total underwriting discounts and commissions we will pay to Aegis. These amounts are shown assuming both no exercise and full exercise of the underwriter's option to purchase additional securities.

---

| | | | |
|:---|:---|:---|:---|
|  |  | **Total** | **Total** |
|  | **<br> Per Unit** | **<br> No Exercise** | **Full<br> Exercise** |
|  Initial public offering price |  | $| $|
|  Underwriting discounts and commissions to be paid by us (8%): |  | $| $|
|  Non-accountable expense allowance (1%)<sup>(1)</sup> |  | $| $|
|  Proceeds, before expenses, to us |  | $| $|

---

____________

(1) We have agreed to pay a non-accountable expense allowance to the underwriter equal to 1% of the Offering.

We have also agreed to reimburse the underwriter for certain of their expenses, including "roadshow", diligence, and reasonable legal fees and disbursements, in an amount not to exceed U.S.$125,000 in the aggregate.

We estimate that the total expenses of the Offering payable by us, excluding underwriting discounts and commissions, will be approximately U.S.$, including a 1.0% non-accountable expense allowance.

#### Over-Allotment Option
We have granted the underwriter an over-allotment option. This option, which is exercisable for up to 45 days after the closing of the Offering, permits the underwriter to purchase a maximum of additional ordinary shares (15% of the ordinary shares sold in this Offering) from us to cover over-allotments, if any. If the underwriter exercises all or part of this option, it will purchase ordinary shares covered by the option at the public offering price per share that appears on the cover page of this prospectus, less the underwriting discount. If this option is exercised in full, the total offering price to the public will be U.S.$ and the total net proceeds to us will be U.S.$.

#### Discretionary Accounts
The underwriter does not intend to confirm sales of the securities offered hereby to any accounts over which they have discretionary authority.

#### Lock-Up Agreements
Pursuant to certain "lock-up" agreements, the Company, its executive officers, directors and certain holders of our ordinary shares and securities exercisable for or convertible into its ordinary shares outstanding immediately upon the closing of this Offering, have agreed, subject to certain exceptions, not to offer, sell, assign, transfer, pledge,

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contract to sell, or otherwise dispose of or announce the intention to otherwise dispose of, or enter into any swap, hedge or similar agreement or arrangement that transfers, in whole or in part, the economic risk of ownership of, directly or indirectly, engage in any short selling of any ordinary shares or securities convertible into or exchangeable or exercisable for any ordinary shares, whether currently owned or subsequently acquired, without the prior written consent of the underwriter, for a period of 180 days from the closing of this Offering.

#### Underwriter's Warrant
We have agreed to issue to Aegis or its designees warrants to purchase up to a total of 10.0% of the ordinary shares sold in this Offering (excluding the over-allotment option). Such warrants and underlying ordinary shares are included in this prospectus. The warrants are exercisable at U.S.$ per share (125% of the public offering price) during the ten month period commencing on a date which is six (6) months after the commencement of sales of this Offering under this prospectus supplement in compliance with FINRA Rule 5110. The warrants have been deemed compensation by FINRA and are therefore subject to a 180-day lock-up pursuant to Rule 5110(e)(1) of FINRA. The underwriters (or their permitted assignees under the Rule) will not sell, transfer, assign, pledge, or hypothecate these warrants or the securities underlying these warrants, nor will it engage in any hedging, short sale, derivative, put, or call transaction that would result in the effective economic disposition of the warrants or the underlying securities for a period of 180 days from the commencement of sales. The warrants may be exercised as to all, or a lesser number of ordinary shares, and will contain provisions for a one-time demand registration right for a period of five (5) years from the date of the commencement of sales of the public offering and unlimited "piggyback" registration rights, for a period of no greater than seven (7) years from the date of commencement of sales of the public offering in compliance with FINRA Rule 5110(g)(8). We will bear all fees and expenses attendant to registering the securities issuable on exercise of the warrants other than underwriting commissions incurred and payable by the holders. The exercise price and number of shares issuable upon exercise of the warrants may be adjusted in certain circumstances including in the event of a stock dividend, extraordinary cash dividend or our recapitalization, reorganization, merger or consolidation. However, the warrant exercise price or underlying shares will not be adjusted for issuances of ordinary shares at a price below the warrant exercise price.

#### Right of First Refusal and Tail Financing
If, for the period ending two (2) years from the closing of this Offering, we or any of our subsidiaries (a) decides to finance or refinance any indebtedness other than traditional bank debt and indebtedness not requiring placement agent for a public offering in the United States, Aegis (or any affiliate designated by Aegis) shall have the right to act as sole book-runner, sole manager, sole placement agent or sole agent with respect to such financing or refinancing; or (b) decides to raise funds by means of a public offering (including at-the-market facility) or a private placement or any other capital raising financing of equity, equity-linked or debt securities, Aegis (or any affiliate designated by Aegis) shall have the right to act as sole book-running manager, sole underwriter or sole placement agent for such financing. The right of first refusal shall not apply to any transaction where the book-running manager, underwriter or placement agent for such financing is a tier one investment bank in the United States and/or its affiliates as agreed between us and the underwriter in this Offering.

In addition, we have agreed to pay the above cash compensation to the extent that any fund which the underwriter contacted or introduced to us during the term of our engagement agreement with the underwriter provides financing or capital in any public or private offering or capital raising transaction during the six (6)-month period following expiration or termination of our engagement letter with the underwriter.

#### Securities Issuance Standstill
We have agreed, for a period of twelve (12) months after the closing date of this Offering, that we will not (a) offer, sell, issue, or otherwise transfer or dispose of, directly or indirectly, any of our equity or any securities convertible into or exercisable or exchangeable for our equity, (b) file or cause to be filed any registration statement with the SEC relating to the offering of our equity or any securities convertible into or exercisable or exchangeable for our; or (c) enter into any agreement or announce the intention to effect any of the actions described in the underwriting agreement for this Offering (all of such matters referred to as the "Standstill"). So long as none of such equity securities shall be saleable in the public market until the expiration of the twelve (12) month period described above, the following matters shall not be prohibited by the Standstill: (i) the adoption of an equity incentive plan and the grant

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of awards or equity pursuant to any equity incentive plan, and the filing of a registration statement on Form S-8, and (ii) the issuance of equity securities in connection with an acquisition or a strategic relationship, which may include the sale of equity securities. In no event should any equity transaction during the Standstill period result in the sale of equity at an offering price to the public less than that of this Offering.

#### Electronic Offer, Sale and Distribution of Shares
A prospectus in electronic format may be made available on the website maintained by the underwriter, if any, participating in this Offering and the underwriter participating in this Offering may distribute prospectuses electronically. The underwriter may agree to allocate a number of shares for sale to its online brokerage account holders. Internet distributions will be allocated by the underwriter if it will make internet distributions on the same basis as other allocations. Other than the prospectus in electronic format, the information on the website is not part of, nor incorporated by reference into, this prospectus or the registration statement of which this prospectus forms a part, has not been approved or endorsed by us or the underwriter in its capacity as underwriter, and should not be relied upon by investors.

#### Stabilization

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Stabilizing transactions permit bids to purchase shares so long as the stabilizing bids do not exceed a specified maximum and are engaged in for the purpose of preventing or retarding a decline in the market price of the shares while the offering is in progress.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Over-allotment transactions involve sales by the underwriter of shares in excess of the number of shares the underwriter is obligated to purchase. This creates a syndicate short position which may be either a covered short position or a naked short position. In a covered short position, the number of shares over-allotted by the underwriter is not greater than the number of shares that they may purchase in the over-allotment option. In a naked short position, the number of shares involved is greater than the number of shares in the over-allotment option. The underwriter may close out any short position by exercising its over-allotment option and/or purchasing shares in the open market.

These stabilizing transactions, syndicate covering transactions and penalty bids may have the effect of raising or maintaining the market price of our ordinary shares or preventing or retarding a decline in the market price of its ordinary shares. As a result, the price of our ordinary shares in the open market may be higher than it would otherwise be in the absence of these transactions. Neither we nor the underwriter make any representation or prediction as to the effect that the transactions described above may have on the price of our ordinary shares. These transactions may be effected on the Nasdaq Global Market, in the over-the-counter market or otherwise and, if commenced, may be discontinued at any time.

#### Market and Pricing Considerations
Prior to this Offering, there has been no public market in the United States for our ordinary shares, and we believe the trading in our securities in international markets has been insufficiently liquid to provide a basis on which to value our company; accordingly, the initial public offering price was determined by negotiations between us and the underwriter. Among the factors considered in determining the initial public offering price are the future prospects of our company and our industry in general, our sales, earnings and certain other financial and operating information in recent periods, and the price-earnings ratios, market prices of securities and certain financial and operating information of companies engaged in activities similar to those of our company. In addition, the underwriter has taken into account our historical trading volume and pricing, subject to the above limitations.

An active trading market for our ordinary shares may not develop. It is possible that after this Offering the ordinary shares will not trade in the public market at or above the initial offering price.

The exercise price for the warrants issued to our underwriter in connection with, and conditional on the closing of, this Offering was negotiated between our Company and Aegis. The exercise price (equal to U.S.$, 125% of the offering price of the ordinary shares in this Offering), along with the length of time the underwriter must wait

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before exercise (at least 180 days after the commencement of sales in this Offering) and the term of the warrants (no more than five years following commencement of sales under this Offering) are influenced by the valuation attributed by FINRA in its calculation of the acceptability of aggregate underwriting consideration.

#### Passive Market Making
In connection with this Offering, the underwriter may engage in passive market making transactions in our ordinary shares on the Nasdaq Global Market in accordance with Rule 103 of Regulation M under the Exchange Act, during a period before the commencement of offers or sales of the shares and extending through the completion of the distribution. A passive market maker must display its bid at a price not in excess of the highest independent bid of that security. However, if all independent bids are lowered below the passive market maker's bid, then that bid must then be lowered when specified purchase limits are exceeded.

#### Other Relationships
The underwriter and its respective affiliates may, in the future provide various investment banking, commercial banking and other financial services for us and our affiliates for which they have received, and may in the future receive, customary fees. However, except as disclosed in this prospectus, we have no present arrangements with the underwriter for any further services.

#### Offer Restrictions Outside the United States
Other than in the United States, no action has been taken by us or the underwriters that would permit a public offering of the securities offered by this prospectus in any jurisdiction where action for that purpose is required. The securities offered by this prospectus may not be offered or sold, directly or indirectly, nor may this prospectus or any other offering material or advertisements in connection with the offer and sale of any such securities be distributed or published in any jurisdiction, except under circumstances that will result in compliance with the applicable rules and regulations of that jurisdiction. Persons into whose possession this prospectus comes are advised to inform themselves about and to observe any restrictions relating to the offering and the distribution of this prospectus. This prospectus does not constitute an offer to sell or a solicitation of an offer to buy any securities offered by this prospectus in any jurisdiction in which such an offer or a solicitation is unlawful.

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#### Expenses of the Offering
We estimate that our expenses in connection with this Offering, other than underwriting discounts and commissions, will be as follows:

---

| | |
|:---|:---|
|  **Expenses** | **Amount** |
|  SEC registration fee | U.S.$ |
|  Nasdaq listing fee |  |
|  FINRA filing fee |  |
|  Printing and engraving expenses |  |
|  Legal fees and expenses |  |
|  Accounting fees and expenses |  |
|  Miscellaneous costs |  |
| &nbsp;&nbsp;&nbsp; Total | U.S.$ |

---

All amounts in the table are estimates except the SEC registration fee, the Nasdaq listing fee and the FINRA filing fee. We will pay all of the expenses of this Offering.

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#### Legal Matters
Certain matters of U.S. federal and New York State law will be passed upon for us by Cleary Gottlieb Steen & Hamilton LLP and for the underwriter by Kaufman & Canoles, P.C.. The validity of the ordinary shares offered in this Offering and other legal matters as to Cayman Islands law will be passed upon for us by Conyers Dill & Pearman LLP.

#### EXPERTS
The consolidated financial statements and schedules of the Company as of and for the years ended December 31, 2021 and 2022, appearing in this prospectus and the registration statement of which this prospectus is a part, have been audited by Ernst & Young Audit S.A.S. ("EY"), independent registered public accounting firm, as set forth in their report thereon appearing elsewhere herein, and are included in reliance upon such report given on the authority of such firm as experts in accounting and auditing. The offices of EY are located at Green Office, Cra. 11 #98 07, Bogota, Colombia.

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#### Where You Can Find Additional Information
We have filed with the SEC a registration statement on Form F-1 under the Securities Act with respect to the sale of ordinary shares under this prospectus. This prospectus, which constitutes a part of the registration statement, does not contain all of the information set forth in the registration statement, some of which is contained in exhibits to the registration statement as permitted by the rules and regulations of the SEC. For further information with respect to us and our ordinary shares, we refer you to the registration statement, including the exhibits filed as a part of the registration statement. Statements contained in this prospectus concerning the contents of any contract or any other document are not necessarily complete descriptions of all terms of such documents. If a contract or document has been filed as an exhibit to the registration statement, please see the copy of the contract or document that has been filed. Each statement in this prospectus relating to a contract or document filed as an exhibit is qualified in all respects by the filed exhibit. The SEC maintains an Internet website that contains reports and other information about issuers, like us, that file electronically with the SEC. The address of that website is *www.sec.gov.*

We currently do not file periodic reports with the SEC. As a result of this Offering, we will become subject to the information and reporting requirements of the Exchange Act that are applicable to foreign private issuers, and, in accordance with this law, will file periodic reports and other information with the SEC. These periodic reports and other information will be available for inspection and copying at the SEC's public reference facilities and the website of the SEC referred to above. We also maintain a website at *www.merqueo.com*. Upon completion of this Offering, you may access these materials free of charge as soon as reasonably practicable after they are electronically filed with or furnished to the SEC. Information contained on our website is not a part of this prospectus and the inclusion of our website address in this prospectus is an inactive textual reference only. As a foreign private issuer, we are exempt under the Exchange Act from, among other things, the rules prescribing the furnishing and content of prospectus, and our executive officers, directors and shareholders are exempt from the reporting and short-swing profit recovery provisions contained in Section 16 of the Exchange Act. In addition, we will not be required under the Exchange Act to file periodic reports and financial statements with the SEC as frequently or as promptly as U.S. companies whose securities are registered under the Exchange Act.

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MERQUEO Let's build together the future of grocery retail. Merqueo S.A.S. and Subsidiaries Consolidated Financial Statements As of and for the years ended December 31, 2021, and 2020 and as of January 1, 2020

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MERQUEO Let's build together the future of grocery retail.

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#### MERQUEO

#### INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

#### Merqueo Holdings and Subsidiaries<br>Consolidated financial statements

---

| | |
|:---|:---|
|  | **Page** |
|  [Report of Independent Registered Public Accounting Firm](#T10001) | F-6 |
|  [Consolidated statements of financial position](#T251) | F-7 |
|  [Consolidated statements of profit or loss](#T252) | F-8 |
|  [Consolidated statements of comprehensive income](#T253) | F-9 |
|  [Consolidated statements of changes in equity](#T254) | F-10 |
|  [Consolidated statements of cash flows](#T255) | F-11 |
|  [Note 1. General information](#T256) | F-12 |
|  [Note 1.1. Equity interest in subsidiaries included in the consolidated financial statements](#T257) | F-12 |
|  [Note 1.2. Restrictions on the transfer of funds](#T258) | F-13 |
|  [Note 2. Basis of presentation](#T259) | F-14 |
|  [Note 2.1. Authorization for the issuance of the consolidated financial statements](#T230) | F-14 |
|  [Note 2.2. Going concern](#T231) | F-14 |
|  [Note 2.3. Current versus non-current classification](#T232) | F-15 |
|  [Note 2.4. Functional currency](#T233) | F-16 |
|  [Note 2.5. Foreign currency transactions](#T234) | F-16 |
|  [Note 3. Basis of consolidation](#T236) | F-17 |
|  [Note 4. Significant accounting policies](#T237) | F-17 |
|  [Note 4.1. Significant accounting judgements, estimates and assumptions](#T238) | F-17 |
|  [Note 4.2. Summary of significant accounting policies](#T239) | F-20 |
|  [Note 5. New and amended standards and interpretations](#T240) | F-34 |
|  [Note 5.1. Application of new and revised International Financial Reporting Standards that are mandatorily effective for 2022](#T241) | F-34 |
|  [Note 5.2. New and revised IFRS issued but not yet effective](#T1997) | F-35 |
|  [Note 6. Cash and cash equivalents](#T243) | F-37 |
|  [Note 7. Trade and other accounts receivable](#T244) | F-37 |
|  [Note 7.1. Trade receivables](#T245) | F-38 |
|  [Note 7.2. Other accounts receivable](#T246) | F-38 |
|  [Note 7.3. Trade and other accounts receivable classified as current and non-current](#T247) | F-39 |
|  [Note 7.4. Credit losses and maturity of trade accounts receivable](#T248) | F-39 |
|  [Note 8. Prepaid expenses](#T249) | F-40 |
|  [Note 9. Inventories and cost of sales](#T250) | F-40 |
|  [Note 9.1. Inventories](#T1002) | F-40 |
|  [Note 9.2. Cost of sales](#T1003) | F-40 |
|  [Note 10. Other financial assets](#T1004) | F-41 |
|  [Note 11. Property and equipment, net](#T1005) | F-41 |
|  [Note 12. Right-of-use assets, net](#T1006) | F-42 |
|  [Note 13. Intangible assets, net](#T1007) | F-44 |
|  [Note 14. Interest-bearing loans and borrowings](#T1008) | F-45 |
|  [Note 15. Employee benefits](#T1009) | F-48 |
|  [Note 16. Suppliers and other payables](#T1010) | F-48 |
|  [Note 17. Accounts payable to related parties and related party transactions](#T260) | F-49 |
|  [Note 17.1. Accounts payable to related parties](#T261) | F-49 |
|  [Note 17.2. Related party transactions](#T262) | F-50 |
|  [Note 18. Lease liabilities](#T264) | F-51 |

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---

| | |
|:---|:---|
|  | **Page** |
|  [Note 19. Income taxes and other taxes](#T265) | F-52 |
|  [Note 20. Other non-financial liabilities](#T266) | F-54 |
|  [Note 21. Capital stock and additional paid-in capital](#T267) | F-54 |
|  [Note 22. Share-based payments and contribution for future capital increases](#T268) | F-56 |
|  [Note 22.1. Share-based payments & warrants](#T269) | F-56 |
|  [Note 22.2. Contribution for future capital increases](#T270) | F-58 |
|  [Note 23. Other comprehensive loss](#T271) | F-58 |
|  [Note 24. Net revenue](#T272) | F-59 |
|  [Note 25. Administrative expenses and selling expenses](#T273) | F-61 |
|  [Note 26. Technology expenses](#T274) | F-62 |
|  [Note 27. Other operating income and other operating expenses](#T275) | F-63 |
|  [Note 28. Net financial result](#T276) | F-63 |
|  [Note 29. Loss per share](#T277) | F-64 |
|  [Note 30. Financial instruments and risk management](#T278) | F-64 |
|  [Note 30.1. Market risks](#T279) | F-66 |
|  [Note 30.2. Credit risk](#T280) | F-67 |
|  [Note 30.3. Liquidity risk](#T281) | F-67 |
|  [Note 31. Contingent assets and liabilities](#T282) | F-68 |
|  [Note 31.1. Contingent assets](#T283) | F-68 |
|  [Note 31.2. Contingent liabilities](#T284) | F-68 |
|  [Note 32. Information about segments](#T285) | F-69 |
|  [Note 33. Discontinued operation](#T286) | F-70 |
|  [Note 34. Subsequent events](#T287) | F-71 |

---

[**Table of Contents**](#TOC001)

Consolidated Financial Statements

------

[**Table of Contents**](#TOC001)

#### Report of Independent Registered Public Accounting Firm
To the Shareholders and the Board of Directors of Merqueo Holdings

#### Opinion on the Financial Statements
We have audited the accompanying consolidated statements of financial position of Merqueo Holdings and subsidiaries (the Company) as of December 31, 2022 and 2021, the related consolidated statements of profit or loss, comprehensive income**,** changes in equity and cash flows for each of the two years in the period ended December 31, 2022, and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company at December 31, 2022 and 2021, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2022, in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board (IASB).

#### The Company's Ability to Continue as a Going Concern
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2.2 to the financial statements, the Company has suffered recurring losses from operations, has a working capital deficiency and has stated that substantial doubt exists about the Company's ability to continue as a going concern. Management's evaluation of the events and conditions and management's plans regarding these matters are also described in Note 2.2. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

#### Basis for Opinion
These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ Ernst & Young Audit S.A.S

We have served as the Company's auditor since 2018.

Bogota, Colombia

March 23, 2023

[**Table of Contents**](#TOC001)

#### Merqueo Holdings and Subsidiaries

#### Consolidated statements of financial position
As of December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), unless otherwise specified.

---

| | | | |
|:---|:---|:---|:---|
|  | **Notes** | **December 31,<br>2022** | **December 31,<br>2021** |
|  **Current assets** |  |  |  |
|  Cash and cash equivalents | 6 | 4418060 | 8670873 |
|  Trade and other accounts receivable | 7 | 6575022 | 6491137 |
|  Prepaid expenses | 8 | 884175 | 605413 |
|  Inventories | 9 | 5748051 | 12374610 |
|  Recoverable taxes | 19 | 8067474 | 6382157 |
|  Other financial assets | 10 | 619331 | 335788 |
|  **Total current assets** |  | **26312113** | **34859978**  |
|  **Non-current assets** |  |  |  |
|  Property and equipment, net | 11 | 5051321 | 5691509 |
|  Right-of-use assets, net | 12 | 10408281 | 18353153 |
|  Intangible assets, net | 13 | 7862089 | 13340644 |
|  Trade and other accounts receivable | 7 | 1390845 | 1546878 |
|  **Total non-current assets** |  | **24712536** | **38932184**  |
|  **Total assets** |  | **51024649** | **73792162**  |
|  **Current liabilities** |  |  |  |
|  Interest-bearing loans and borrowings | 14 | 9169123 | 6667981 |
|  Employee benefits | 15 | 5184487 | 5684467 |
|  Suppliers and other payables | 16 | 29285855 | 51542661 |
|  Accounts payable to related parties | 17 | 28258254 | 982875 |
|  Lease liabilities | 18 | 4230219 | 5766400 |
|  Other taxes payable | 19 | 487285 | 120588 |
|  Other non-financial liabilities | 20 | 1282360 | 2637379 |
|  **Total current liabilities** |  | **77897583** | **73402351**  |
|  **Non-current liabilities** |  |  |  |
|  Interest-bearing loans and borrowings | 14 | 100349560 | 1278587 |
|  Accounts payable to related parties | 17 | 3911533 | 4627124 |
|  Lease liabilities | 18 | 5637428 | 14278538 |
|  Other non-financial liabilities | 20 | 193770 |  |
|  **Total non-current liabilities** |  | **110092291** | **20184249**  |
|  **Total liabilities** |  | **187989874** | **93586600**  |
|  **Equity** |  |  |  |
|  Issued capital | 21 | 392164623 | 225005245 |
|  Cumulative deficit |  | (616955942) | (322534195) |
|  Other comprehensive loss | 23 | 1059120 | (455900) |
|  Other capital reserves | 22 | 86766974 | 78190412 |
|  **Total equity** |  | **(136965225)** | **(19794438)** |
|  **Total equity and liabilities** |  | **51024649** | **73792162**  |

---

From note 1 to 34 notes are an integral part of these consolidated financial statements.

[**Table of Contents**](#TOC001)

#### Merqueo Holdings and Subsidiaries

#### Consolidated statements of profit or loss
For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except for earnings per share and as otherwise specified.

---

| | | | |
|:---|:---|:---|:---|
|  | **Notes** | **December 31,<br>2022** | **December 31,<br>2021** |
|  **Continuing operations** |  |  |  |
|  Net revenue | 24 | 133906761 | 205600950 |
|  Cost of sales | 9 | (126746164) | (193890132) |
|  **Gross profit** |  | **7160597** | **11710818** |
|  Selling expenses | 25 | (75224959) | (79775558) |
|  Administrative expenses | 25 | (70031608) | (41755390) |
|  Technology expenses | 26 | (6579776) | (4594339) |
|  Other operating income | 27 | 2167920 | 1303585 |
|  Other operating expenses | 27 | (13143965) | (5362586) |
|  **Operating loss** |  | **(155651791)** | **(118473470)** |
|  Finance income |  | 98556 | 47449 |
|  Finance costs |  | (98528463) | (5638021) |
|  Net loss on exchange differences |  | (16222617) | (1613669) |
|  **Net financial result** | 28 | **(114652524)** | **(7204241)** |
|  **Loss before income tax** |  | **(270304315)** | **(125677711)** |
|  Income tax expense | 19 | (1449) |  |
|  **Net loss from continuing operations** |  | **(270305764)** | **(125677711)** |
|  Net loss from discontinued operations | 34 | (24115983) | (38265459) |
|  **Net loss for the year** |  | **(294421747)** | **(163943170)** |
|  **Loss per share (\*)** |  |  |  |
|  Loss per share from continuing operations | 29 | (266.48) | (205.46) |
|  Loss per share in discontinued operations | 29 | (23.78) | (62.56) |
|  **Basic and diluted loss per share** | 29 | **(290.26)** | **(268.02)** |

---

From note 1 to 34 notes are an integral part of these consolidated financial statements.

[**Table of Contents**](#TOC001)

#### Merqueo Holdings and Subsidiaries

#### Consolidated statements of comprehensive income
For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.

---

| | | | |
|:---|:---|:---|:---|
|  | **Notes** | **December 31,<br>2022** | **December 31,<br>2021** |
|  **Net loss for the year** |  | **(294421747)** | **(163943170)** |
|  **Other comprehensive income that may be reclassified to profit or loss in subsequent periods:** |  |  |  |
|  Exchange differences on translation of foreign operations | 23 | 1515020 | (391605) |
|  **Total other comprehensive income that may be reclassified to profit or loss in subsequent periods:** |  | **1515020** | **(391605)** |
|  **Total other comprehensive loss** |  | **1515020** | **(391605)** |
|  **Other comprehensive loss for the year** |  | **(292906727)** | **(164334775)** |

---

From note 1 to 34 notes are an integral part of these consolidated financial statements.

[**Table of Contents**](#TOC001)

#### Merqueo Holdings and Subsidiaries

#### Consolidated statements of changes in equity
For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Capital<br>stock** | **Additional<br>paid-in<br>capital** | **Share-<br>based<br>payments** | **Warrant for<br>equity** | **Contributions<br>for future<br>capital<br>increases** | **Other<br>comprehensive<br>loss** | **Cumulative<br>deficit** | **Total equity** |
|  **Notes** | **21** | **21** | **22** | **21** | **22** | **23** |  |  |
|  **As of December 31, 2020** | **536407** | **121373001** | **402995** | **—** | **22900331** | **(64295)** | **(158583020)** | **(13434581)** |
|  Net loss |  |  |  |  |  |  | (163943170) | (163943170) |
|  Other comprehensive income |  |  |  |  |  | (391605) |  | (391605) |
|  Issue of share capital | 139456 | 102956381 |  |  | (103095837) |  |  |  |
|  Share based payments |  |  | 101976 |  |  |  |  | 101976 |
|  Advance payments for future capitalization |  |  |  |  | 157880947 |  |  | 157880947 |
|  Other |  |  |  |  |  |  | (8005) | (8005) |
|  **As of December 31, 2021** | **675863** | **224329382** | **504971** | **—** | **77685441** | **(455900)** | **(322534195)** | **(19794438)** |
|  Net loss |  |  |  |  |  |  | (294421747) | (294421747) |
|  Other comprehensive income |  |  |  |  |  | 1515020 |  | 1515020 |
|  Issue of share capital | 811019 | 166348359 |  |  | (167159378) |  |  |  |
|  Share based payments |  |  | 119376 |  |  |  |  | 119376 |
|  Warrant expense |  |  |  | 86142627 |  |  |  | 86142627 |
|  Advance payments for future capitalization |  |  |  |  | 89473937 |  |  | 89473937 |
|  **As of December 31, 2022** | **1486882** | **390677741** | **624347** | **86142627** | **—** | **1059120** | **(616955942)** | **(136965225)** |

---

From note 1 to 34 notes are an integral part of these consolidated financial statements.

[**Table of Contents**](#TOC001)

#### Merqueo Holdings and Subsidiaries

#### Consolidated statements of cash flows
For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.

---

| | | |
|:---|:---|:---|
|  | **December 31,<br>2022** | **December 31,<br>2021** |
|  **Operating activities** |  |  |
|  **Net loss for the year** | **(294421747)** | **(163943170)** |
|  **Adjustments to reconcile loss before tax net cash flow:** |  |  |
|  Depreciation of property and equipment | 1780593 | 1784056 |
|  Depreciation of right-of-use assets | 5024117 | 4791635 |
|  Amortization of intangible assets | 1947879 | 2184918 |
|  Allowance for credit losses | 862261 | 327673 |
|  Loss in carrying inventories to net realizable value | 345350 | 365777 |
|  Share-based payment expense | 115073 | 118901 |
|  Interest on lease liability | 2415371 | 2483078 |
|  Gain on termination of leases | (551331) | (386650) |
|  Net loss on disposal of property and equipment | 2248866 | 456271 |
|  Impairment of inventories |  | 53356 |
|  Unrealized exchange differences | 15696059 | (325382) |
|  Intangibles and other assets write-off | 7198284 | 786108 |
|  Warrant expense | 86142628 |  |
|  Interest expense on loans and borrowings | 7876172 | 1489867 |
|  Interest expense on accounts payable with related parties' | 1699740 | 1665076 |
|  Other adjustments for items other than cash | (30789) | 101651 |
|  **Working capital changes:** |  |  |
|  (Increase) decrease in trade and other receivables | (1287017) | (86402) |
|  (Increase) decrease in prepayments | (504284) | 171847 |
|  Decrease (increase) in inventories | 4378023 | (2827929) |
|  Increase in recoverable taxes | (1684059) | (2530265) |
|  Increase in other financial assets | (283543) |  |
|  (Decrease) increase in suppliers and other payables | (21606574) | 5211932 |
|  Increase in accounts payable to related parties | (35909) | (271) |
|  Increase in other tax payables | 394496 | 23043 |
|  (Decrease) increase in employee benefits liability | (247488) | 1459852 |
|  (Decrease) increase in other non-financial liabilities | (1166634) | 2065449 |
|  Net cash flows from operating activities in discontinued operations | 2152272 | 865427 |
|  **Net cash flows used in operating activities** | **(181542191)** | **(143694152)** |
|  **Investing activities** |  |  |
|  Development costs of intangible assets | (3667608) | (7082932) |
|  Proceeds from sale of property and equipment | 62975 | 417095 |
|  Purchase of property and equipment | (3554380) | (2909102) |
|  Net cash flows from investing activities in discontinued operations | (575806) | (1141026) |
|  **Net cash flows from (used in) investing activities** | **(7734819)** | **(10715965)** |
|  **Financing activities** |  |  |
|  Issue of share capital | 577670 | 380513 |
|  Proceeds from additional paid-in capital | 88896267 | 157500434 |
|  Proceeds from borrowings | 91168909 | 4916118 |
|  Debt issuance costs | (2644396) |  |
|  Repayment of borrowings and interest-bearing loans | (10657979) | (10250106) |
|  Lease payments | (7408178) | (6737323) |
|  Proceeds from related parties | 26595697 | 5609999 |
|  Debt issuance costs from related parties | (1094392) |  |
|  Repayment to related parties | (1602517) | (1665076) |
|  Net cash flow from financing activities in discontinued operations |  | (1187290) |
|  **Net cash flows from financing activities** | **183831081** | **148567269** |
|  **Net decrease in cash and cash equivalents** | **(5445929)** | **(5842848)** |
|  Net foreign exchange difference | 1193116 | (430628) |
|  Cash and cash equivalents as of January 1 | 8670873 | 14944349 |
|  **Cash and cash equivalents as of year end** | **4418060**  | **8670873**  |

---

From note 1 to 34 notes are an integral part of these consolidated financial statements.

[**Table of Contents**](#TOC001)

**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 1. General information
Merqueo Holdings (the "Parent Company") and its subsidiaries (hereinafter, "Merqueo", or the "Company") is an exempted company with limited liability incorporated in the Cayman Islands on September 13, 2022, for purposes of facilitating an initial public offering in the United States. As provided in its Memorandum and Articles of Association, subject to Cayman Islands law, Merqueo Holdings has full capacity to carry on or undertake any business or activity, do any act, or enter into any transaction, and, for such purposes, full rights, powers and privileges. Its registered office is c/o Conyers Trust Company (Cayman) Limited, with address: SIX, 2<sup>nd</sup> Floor, Cricket Square, PO Box 2681, Grand Cayman KY1-1111, Cayman Islands. Merqueo Holdings' corporate purposes are unrestricted, and it has the authority to carry out any object not prohibited by any law as provided by Section 7(4) of the Cayman Companies Act.

Historically, the operations have been realized through Merqueo S.A.S., a Colombian based entity together with its subsidiaries. Merqueo S.A.S.' shareholders executed a corporate reorganization ("Corporate Reorganization") on December 19, 2022. For that matter, two Cayman Islands exempted companies, Merqueo Cayman and Merqueo Holdings were incorporated. Merqueo Cayman and Merqueo Holdings were formed to facilitate the initial public offering of the Company and have, engaged only in activities for this purpose. As of the completion of the Corporate Reorganization, Merqueo Holdings is the parent of the operating companies and will be the issuer of the planned public offering.

Merqueo is a digital supermarket business, whose operations are primarily conducted in urban areas in Latin America through its proprietary technology, distribution logistics and warehouses adapted for the storage of merchandise and preparation and shipping of orders. These warehouses are located in different areas of the cities where it operates and have been selected in order to optimize the Company's logistics. Merqueo also has developed 31+ private label brands, through which it offers products at more competitive prices across different categories from fresh produce to frozen products, and from house cleaning and personal hygiene to meat and dairy. With regards to its distribution logistics, Merqueo outsources its transport fleet utilizing third-party drivers that log-in into Merqueo's delivery app, integrated into Merqueo's system, to fulfill the deliveries. The Company ensures that the vehicles have the required permits for the products they transport. The Company currently has operations in Colombia (started in 2015), and Brazil (started in 2021). Additionally, Mexico (started in 2019 and discontinued in 2022 — see Note 35).

#### Note 1.1. Equity interest in subsidiaries included in the consolidated financial statements
Merqueo Holdings is an ultimate controller entity, and the equity interest in its subsidiaries included in the consolidated financial statements as of December 31, 2022, and 2021, is detailed below:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  **Name** | **Segment** | **Country** | **Functional currency** | **Equity interest 2022** | **Equity interest 2022** | **Equity interest 2022** | **Equity interest 2021** | **Equity interest 2021** | **Equity interest 2021** |
|  **Name** | **Segment** | **Country** | **Functional currency** | **Direct** | **Indirect** | **Total** | **Direct** | **Indirect** | **Total** |
|  Merqueo International S.A.S. | Investment | Colombia | Colombian Peso | 0.00% | 100.00% | 100.00% | 100.00% | 0.00% | 100.00% |
|  Merqueo S.A. de C.V. | Retail | Mexico | Mexican Peso | 0.00% | 100.00% | 100.00% | 90.14% | 9.86% | 100.00% |
|  Merqueo Comercio <br>Varejista e Intermediacao de Negocios Ltda | Retail | Brazil | Brazilian Real | 0.00% | 100.00% | 100.00% | 99.00% | 1.00% | 100.00% |
|  Merqueo S.A.S. | Retail | Colombia | Colombian Peso | 0.00% | 100.00% | 100.00% | 0.00% | 0.00% | 0.00% |
|  Merqueo Cayman | Investment | Cayman Island | Colombian Peso | 100.00% | 0.00% | 100.00% | 0.00% | 0.00% | 0.00% |

---

[**Table of Contents**](#TOC001)

**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 1. General information (cont.)
Thus, the scope of consolidation as of December 31, 2022, is as follows:

![](tflowchart_006.jpg)

Thus, the scope of consolidation as of December 31, 2021, is as follows:

![](tflowchart_007.jpg)

#### Note 1.2. Restrictions on the transfer of funds
As of December 31, 2022, and December 31, 2021, there are no restrictions on the ability of subsidiaries to transfer funds to the Parent Company in the form of cash dividends, or repayment of loans or advances made.

[**Table of Contents**](#TOC001)

**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 2. Basis of presentation
The consolidated financial statements of the Company have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB").

As a result of the restructuring in December 2022, Merqueo Holdings (a holding company with no previous operations) became the 100% owner in the outstanding shares of Merqueo, S.A.S. Merqueo, S.A.S. has previously issued consolidated financial statements in accordance with IFRS as issued by the IASB for the years ended December 31, 2022, and 2021. Given that the transfer of shares prior to and subsequent to the restructuring doesn't change the economic substance of the shareholding structure to Merqueo's consolidated financial statements, the consolidated financial statements of Merqueo Holdings have been prepared comparatively as if it had always been the Parent Company of Merqueo S.A.S. for all periods presented.

The consolidated financial statements have been prepared on a historical cost basis. The consolidated financial statements are presented in Colombian pesos, except when otherwise indicated.

In the following notes to the consolidated financial statements, references to "pesos", "Ps." or "$" are in thousands of Colombian pesos, and references to "U.S. dollars", "USD" or "U.S.$" are to United States dollars, except otherwise specified.

#### Note 2.1. Authorization for the issuance of the consolidated financial statements
The issuance of the accompanying consolidated financial statements and their notes were authorized for issuance by Felipe Ossa Rodríguez, Chief Executive Officer ("CEO") and Jairo Medina, Chief Financial Officer ("CFO") on March 23, 2023, and subsequent events have been considered until that date (see Note 35). These consolidated financial statements will subsequently be presented at the Company's Shareholders' Meeting, who have the authority to amend them.

#### Note 2.2. Going concern
In response to the crisis of the COVID-19 pandemic, in 2020 countries took measures to boost the economy, including the drastic reduction of interest rates, with the aim of promoting household and business spending, which led to the creation of a scenario of high liquidity to invest, especially in startups.

As a response to counteract the rapid increase in inflation derived from these measures, in recent months countries have rapidly increased interest rates and therefore the cost of money, which translates into an increase in credit prices, mainly affecting companies that require funding to carry out their operations.

This situation has had a significant impact on the investment required by the Company, which in turn has negatively impacted its financial performance during the year and its liquidity position. The Company is a start-up and is looking to continue to grow its operations through continued investments as it aims to achieve profitable operations. For the year ended December 31, 2022, and 2021, the Company recognized a net loss of $294,421,747, and $163,943,170, respectively. As of December 31, 2022, and 2021, the financial statements reflect a net financial liability exposure of $170,484,401, and $68,815,353. The Company has $16,786,327 of resources comprising cash and cash equivalents, other highly liquid assets, and unused lines of credit available at the date of issuance of these financial statements.

Management has modeled various scenarios considering a period of 12 months from the date of issuance of the financial statements. The modeled assumptions are based on the estimated potential impact of current constraints and expected levels of customer demand, including responses proposed by management over the course of the period. The baseline scenario includes the benefits of actions already taken by management and the Board of Directors to

[**Table of Contents**](#TOC001)

**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 2. Basis of presentation (cont.)
mitigate disadvantages arising from the current liquidity situation, such as the closure of low-profitability business lines, the physical reduction of operations, the decrease in marketing spending and investment, and the suspension of non-essential hiring, among the most relevant.

The Company is planning to raise funds through an initial public offering and continued follow-ons, in addition to other plans to become profitable through organic and inorganic growth. However, based on the projected cash outflows of the Company, management and the Board of Directors have determined the Company does not have sufficient existing cash to maintain its operations over the subsequent 12 months from the issuance date of these consolidated financial statements. This matter results in a material uncertainty that casts substantial doubt regarding the Company's ability to continue as a going concern.

The plans and measures of the Company's Board of Directors and management result in their determination that the use of the going concern assumption is warranted as their intention is to take the Company public and obtain additional funding to sustain its operations. Therefore, these consolidated financial statements have been prepared on a going concern basis and do not include any adjustments to the carrying values or the classification of reported assets, liabilities and expenses that might result from the material uncertainty.

#### Note 2.3. Current versus non-current classification
The Company presents assets and liabilities in the statement of financial position based on current/non-current classification. An asset is current when it is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Expected to be realized or intended to be sold or consumed in the normal operating cycle.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Held primarily for the purpose of trading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Expected to be realized within twelve months after the reporting period, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• It is expected to be settled in the normal operating cycle.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• It is held primarily for the purpose of trading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• It is due to be settled within twelve months after the reporting period or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

The terms of the liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

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**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 2. Basis of presentation (cont.)

#### Note 2.4. Functional currency
The Company's consolidated financial statements are presented in Colombian pesos, which is also the Parent Company's functional currency as this is a shell Company with very limited transactions. For each entity, the Company determines the functional currency and items included in the financial statements of each entity are measured using that functional currency. The functional currency of the Company's subsidiaries has been determined to be that of the countries in which they operate, as the revenues and related expenses are transacted primarily in local currency based on the nature of their business activities.

#### Note 2.5. Foreign currency transactions
Transactions in foreign currencies are initially recorded by the Company's subsidiaries at their respective functional currency spot rates at the date the transaction first qualifies for recognition.

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date. Differences arising on settlement or translation of monetary items are recognized in profit or loss.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions.

In determining the spot exchange rate to use on initial recognition of the related asset, expense or income (or part of it) on the derecognition of a non-monetary asset or non-monetary liability relating to advance consideration, the date of the transaction is the date on which the Company initially recognizes the non-monetary asset or non-monetary liability arising from the advance consideration. If there are multiple payments or receipts in advance, the Company determines the transaction date for each payment or receipt of advance consideration.

#### Subsidiaries
On consolidation, the assets and liabilities of foreign operations are translated into Colombian pesos at the rate of exchange prevailing at the reporting date and their statements of profit or loss are translated at the average exchange rates prevailing at the reporting periods. The exchange differences arising on translation for consolidation are recognized in other comprehensive income ("OCI"). On disposal of a foreign operation, the component of OCI relating to that particular foreign operation is reclassified to profit or loss.

The observable market exchange rates at the reporting dates and the average of such periods, are shown below:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Closing rate<sup>(\*)</sup>** | **Closing rate<sup>(\*)</sup>** | **Average rate<sup>(\*)</sup>** | **Average rate<sup>(\*)</sup>** |
|  **Functional currency** | **December 31, <br>2022** | **December 31, <br>2021** | **December 31, <br>2022** | **December 31, <br>2021** |
|  Mexican Peso | 246.84 | 194.54 | 211.83 | 184.55 |
|  Brazilian Real | 921.95 | 713.44 | 823.81 | 695.42 |

---

____________

(\*) Expressed in Colombian pesos.

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**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 3. Basis of consolidation
The consolidated financial statements comprise the financial statements of the Company and its subsidiaries as of December 31, 2022, and 2021. Control is achieved when the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Company controls an investee if, and only if, the Company has:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Power over the investee (i.e., existing rights that give it the current ability to direct the relevant activities of the investee)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Exposure, or rights, to variable returns from its involvement with the investee

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The ability to use its power over the investee to affect its returns.

Generally, there is a presumption that a majority of voting rights results in control. To support this presumption and when the Company has less than a majority of the voting or similar rights of an investee, the Company considers all relevant facts and circumstances in assessing whether it has power over an investee, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The contractual arrangement(s) with the other vote holders of the investee

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Rights arising from other contractual arrangements.

#### The Company's voting rights and potential voting rights
The Company re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Assets, liabilities, income, and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date the Company gains control until the date the Company ceases to control the subsidiary.

Profit or loss and each component of OCI are attributed to the equity holders of the parent of the Company. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line with the Company's accounting policies. All intra-Company assets and liabilities, equity, income, expenses, and cash flows relating to transactions between members of the Company are eliminated in full on consolidation.

A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction.

If the Company loses control over a subsidiary, it derecognizes the related assets (including goodwill), liabilities, non-controlling interest, and other components of equity, while any resultant gain or loss is recognized in profit or loss. Any investment retained is recognized at fair value.

#### Note 4. Significant accounting policies

#### Note 4.1. Significant accounting judgements, estimates and assumptions
The preparation of the Company's consolidated financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

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**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 4. Significant accounting policies (cont.)

#### Judgements
In the process of applying the Group's accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognized in the consolidated financial statements:

#### Revenue recognition — principal vs. agent
The Company assesses whether it acts as an agent or principal in net revenue. The assessment is based on whether the Company controls the products provided to the customer and is, therefore, the principal in the transaction, recognizing revenue on a gross basis. The Company allows other parties through its technological platform to provide products to the final customer and evaluates whether it is acting as an agent and recognize revenue on a net basis for the commission charged.

Management has determined that for its marketplace sales, the Company acts as an agent, since consumers use the platform to choose the products of third-party merchants who are ultimately responsible for the fulfillment of the order and maintains control of the related inventories. The Company does not prepurchase or gain control of the goods or services from the merchant prior to their transfer to the consumer. Revenue from the commission of marketplace sales is recorded on a net basis as the Company has concluded that it is acting as agent.

As part of its marketplace sales, the Company provides the delivery service of the products to the customer. The Company has determined that the delivery service is controlled by it, and therefore acts as a principal. Fees for delivery services charged to the consumer are recognized in revenue, and the cost incurred in providing delivery services and processing transactions is included in order fulfillment costs.

#### Determining the lease term of contracts
The Company determines the lease term associated with its warehouse and distribution centers as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised.

The Company has several lease contracts that include extension and termination options. The Company applies judgement in evaluating whether it is reasonably certain whether or not to exercise the option to renew or terminate the lease. That is, it considers all relevant factors that create an economic incentive for it to exercise either the renewal or termination. After the commencement date, the Company reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise or not to exercise the option to renew or to terminate (e.g., construction of significant leasehold improvements or significant customization to the leased asset).

The Company included the renewal period as part of the lease term for leases of distribution centers with shorter non-cancellable period. The Company typically exercises its option to renew for these leases because there could be an adverse effect on the business operation if a replacement asset is not readily available. Furthermore, the periods covered by termination options are included as part of the lease term only when they are reasonably certain not to be exercised.

#### Estimates and assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, which have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters

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**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 4. Significant accounting policies (cont.)
available when the consolidated financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

#### Recognition of deferred tax assets
Deferred tax assets are recognized for tax loss carryforwards to the extent that it is probable that taxable profit will be available against which the losses can be utilized. Significant management judgement is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits, together with future tax planning strategies.

#### Development costs
The Company capitalizes costs for software development projects and enhancement and efficiency improvements of its technological platform. Initial capitalization of costs is based on management's judgement that technological and economic feasibility is confirmed, usually when a product development project has reached a defined milestone according to an established project management model. In determining the amounts to be capitalized, management makes assumptions regarding the expected future cash generation of the project, discount rates to be applied and the expected period of benefits.

#### Estimating the incremental borrowing rate of leased assets
The Company leases office space and warehouses, which it uses to hold its products that are sold to customers through its technology platform. The Company cannot readily determine the interest rate implicit in certain of its leases, therefore, it uses its incremental borrowing rate ("IBR") to measure lease liabilities. The IBR is the rate of interest that the Company would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The IBR therefore reflects what the Company 'would have to pay', which requires estimation when no observable rates are available, or when they need to be adjusted to reflect the terms and conditions of the lease. The Company estimates the IBR using observable inputs (such as market interest rates) when available and is required to make certain entity-specific estimates (such as the subsidiary's stand-alone credit rating).

#### Impairment of non-financial assets
Impairment exists when the carrying value of an asset or cash-generating unit exceeds the Company's market value. The fair value of the Company is estimated annually. The Company assesses impairment whenever the value of the non-financial asset exceeds the fair value of the Company.

#### Share-based payments
Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation model, which depends on the terms and conditions of the grant. This estimate also requires determination of the most appropriate inputs to the valuation model including the expected life of the share option or appreciation right, volatility and dividend yield and making assumptions about them. For the measurement of the fair value of the equity-settled transactions with employees at the grant date, the Company uses an option pricing model. The assumptions used for estimating fair value for share-based payment transactions are disclosed in Note 22.

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**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 4. Significant accounting policies (cont.)

#### Note 4.2. Summary of significant accounting policies

#### Related parties
The Company has considered as related parties its subsidiaries, group companies, key management personnel, including the Board of Directors, Presidents, Vice Presidents, Corporate Business Managers and Directors who have the ability to direct, plan and control the activities of the Company; also, companies over which key management personnel may exercise control or joint control, and close relatives of key management personnel who may have influence over the Company.

Transactions between related parties consists of the transfer of resources, services and obligations between the Company and its related parties.

None of the transactions incorporate special terms and conditions; the characteristics of the transactions do not differ from those carried out with third parties nor do they imply differences between market prices for similar operations; sales and purchases are made under conditions equivalent to those that exist for transactions between independent parties.

#### Intangible assets
Intangible assets comprise internally generated intangible assets relating mainly to computer software, and other intangible assets relating mainly to externally acquired computer licenses and other assets. These are held at cost, less accumulated amortization, and any recognized impairment charge. Other intangible assets, such as externally acquired computer software and software licenses, are capitalized, and amortized on a straight-line basis over their useful lives.

Amortization periods and methods are reviewed annually and adjusted if appropriate.

#### Cost capitalization
The cost of an internally generated intangible asset is capitalized as an intangible asset where management determines that the ability to develop the asset is technically feasible, will be completed, and that the asset will generate economic benefit that outweighs its cost. Management determines whether the nature of the projects meets the recognition criteria to allow for the capitalization of internal costs, which include primarily labor costs directly attributable to development. During the period, management has considered whether costs in relation to the time spent on specific software projects can be capitalized. Time spent that was eligible for capitalization included time which was intrinsic to the development of new software assets and the enhancement and efficiency improvements of the existing platform.

Other development costs that do not meet the above criteria are recognized as expenses as incurred. Development costs previously recognized as an expense are never capitalized in subsequent periods.

Research costs are recognized as expenses as incurred. These are costs that contribute to gaining new knowledge, which management assesses as not satisfying the capitalization criteria of IAS 38 — Intangible Assets, as outlined above, such as salaries and benefits of employees assessing and analyzing future technologies and their likely viability.

In certain circumstances, some assets are ready for use, but are not performing as intended by management. Development costs that relate to the enhancement or modifications of existing assets are capitalized until the asset is performing as intended by management. Management assesses the capitalization of these costs and exercises judgement in determining the qualifying costs. When unsure if the enhancement or modification costs relate to the development of the asset or to its maintenance, management treats the costs as if incurred in the research phase only.

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**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 4. Significant accounting policies (cont.)

#### Estimation of useful life
The periodic amortization charge is derived by estimating an asset's expected useful life and the expected residual value at the end of its life. Increasing an asset's expected life or its residual value would result in a reduced amortization charge in the consolidated statement of profit or loss.

The useful life is determined by management at the time software is acquired and brought into use and is reviewed for appropriateness regularly. For computer software licenses, the useful life represents management's view of the expected period over which the Company will receive benefits from the software.

For unique software products developed and controlled by the Company, the life is based on historical experience with similar products as well as anticipation of future events which may affect their useful life, such as changes in technology. Amortization and impairment of computer software or licenses are charged to technology expenses or administrative expenses, according to the assets' nature, in the period in which they arise.

Amortization of intangible assets is calculated on a straight-line basis from the date on which the assets are brought into use, is charged to technology expenses or administrative expenses, and is calculated based on the useful lives indicated below:

Internally generated intangible assets 1 to 10 years

#### Property and equipment
Property and equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Such cost includes the cost of replacing part of the property and equipment and borrowing costs for long-term construction projects if the recognition criteria are met. When significant parts of property and equipment are required to be replaced at intervals, the Company depreciates them separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost is recognized in the carrying amount of the property and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognized in profit or loss as incurred.

Property and equipment transferred from customers are initially measured at fair value at the date on which control is obtained.

Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets, as follows:

---

| | |
|:---|:---|
|  • Furniture and fixtures | 5 to 10 years |
|  • Transportation equipment | 10 years |
|  • Computer and communication equipment | 3 to 5 years |
|  • Machinery and equipment | 5 to 10 years |
|  • Leasehold improvements | Term of the lease agreement |

---

The Company reviews the estimated residual values and expected useful lives of assets at least annually. In particular, the Company considers the impact of health, safety, and environmental legislation in its assessment of expected useful lives and estimated residual values.

An item of property and equipment and any significant part initially recognized is derecognized upon disposal (i.e., at the date the recipient obtains control) or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of profit or loss when the asset is derecognized.

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**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 4. Significant accounting policies (cont.)
The residual values, useful lives, and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

#### Leases
The Company applies a single recognition and measurement approach for all leases. The Company recognizes lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.

#### Company as a lessee
The Company applies a single recognition and measurement approach for all leases. The Company recognizes lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.

**a. Right-of-use assets**

The Company recognizes right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets, as follows:

---

| | |
|:---|:---|
|  • Distribution centers | 5 years |
|  • Furniture and fixtures | 5 to 10 years |
|  • Communication equipment | 5 to 10 years |
|  • Refrigeration equipment | 5 to 10 years |

---

If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset.

**b. Lease liabilities**

At the commencement date of the lease, the Company recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects the Company exercising the option to terminate.

Variable lease payments that do not depend on an index or a rate are recognized as expenses in the period in which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset.

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**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 4. Significant accounting policies (cont.)
c. Sale and leaseback transactions

The Company has sale and leaseback agreements and assesses if the transaction satisfies the requirements of IFRS 15 — Revenue from contracts, with customers to be accounted for as a sale of the asset. If the transfer of the asset is a sale, the Company measures the right-of-use asset arising from the leaseback at the proportion of the previous carrying amount of the asset that relates to the right of use retained and recognizes any gain or loss in the consolidated statements of profit or loss that relates to the rights transferred to the buyer-lessor.

If the transfer of the asset by the Company does not satisfy the requirements of IFRS 15 to be accounted for as a sale of the asset, the Company continues to recognize the transferred asset and recognize a financial liability equal to the transfer proceeds.

#### Impairment of non-financial assets
Further disclosures relating to impairment of non-financial assets are also provided in Note 4.1 (Significant accounting judgements, estimates and assumptions).

The Company assesses at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset's recoverable amount. An asset's recoverable amount is the higher of an assets or CGU's fair value less costs of disposal and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

Impairment losses are recognized in the statement of profit or loss in expense categories consistent with the function of the impaired asset.

For assets excluding goodwill, an assessment is made at each reporting date to determine whether there is an indication that previously recognized impairment losses no longer exist or have decreased. If such indication exists, the Company estimates the assets or CGU's recoverable amount. A previously recognized impairment loss is reversed only if there has been a change in the assumptions used to determine the asset's recoverable amount since the last impairment loss was recognized. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in the statement of profit or loss.

#### Inventories
Inventories are valued at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

Inventories are valued using the weighted average method, and it includes the costs incurred in bringing each product to its present location and condition. Logistics costs and supplier discounts are capitalized in inventory and recognized in cost of sales when they are sold.

Additionally, the Company sales visibility and positioning services inside its platform to its suppliers. Since merchandise purchases are highly interrelated with such advertising sales, the Company deducts these sales from the transaction price of inventories and recognized them in cost of sales. There is no legal right to offset the amount receivable for advertising services against the amounts payable to the associated suppliers; therefore, the Company recognizes an account receivable for the sale of those services.

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**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 4. Significant accounting policies (cont.)

#### Financial instruments — initial recognition and subsequent measurement
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

#### Financial assets

#### Initial recognition and measurement
Financial assets are classified, at initial recognition, as subsequently measured at amortized cost, fair value through OCI, and fair value through profit or loss.

The classification of financial assets at initial recognition depends on the financial asset's contractual cash flow characteristics and the Company's business model for managing them. With the exception of trade receivables that do not contain a significant financing component or for which the Company has applied the practical expedient, the Company initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. Trade receivables that do not contain a significant financing component or for which the Company has applied the practical expedient are measured at the transaction price as disclosed in section Net revenue.

In order for a financial asset to be classified and measured at amortized cost or fair value through OCI, it needs to give rise to cash flows that are 'solely payments of principal and interest (SPPI)' on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level. Financial assets with cash flows that are not SPPI are classified and measured at fair value through profit or loss, irrespective of the business model.

The Company's business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both. Financial assets classified and measured at amortized cost are held within a business model with the objective to hold financial assets in order to collect contractual cash flows while financial assets classified and measured at fair value through OCI are held within a business model with the objective of both holding to collect contractual cash flows and selling.

Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the marketplace (regular way trades) are recognized on the trade date, i.e., the date that the Company commits to purchase or sell the asset.

#### Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in four categories:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Financial assets at amortized cost (debt instruments)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instruments)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Financial assets at fair value through profit or loss.

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**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 4. Significant accounting policies (cont.)

#### Financial assets at amortized cost (debt instruments)
Financial assets at amortized cost are subsequently measured using the effective interest (EIR) method and are subject to impairment. Gains and losses are recognized in profit or loss when the asset is derecognized, modified, or impaired.

The Company's financial assets at amortized cost includes trade receivables.

#### Financial assets at fair value through OCI (debt instruments)
For debt instruments at fair value through OCI, interest income, foreign exchange revaluation and impairment losses or reversals are recognized in the statement of profit or loss and computed in the same manner as for financial assets measured at amortized cost. The remaining fair value changes are recognized in OCI. Upon derecognition, the cumulative fair value change recognized in OCI is recycled to profit or loss.

The Company does not have debt instruments measure at fair value through OCI.

#### Financial assets designated at fair value through OCI (equity instruments)
Upon initial recognition, the Company can elect to classify irrevocably its equity investments as equity instruments designated at fair value through OCI when they meet the definition of equity under IAS 32 Financial Instruments: Presentation and are not held for trading. The classification is determined on an instrument-by-instrument basis.

Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognized as other income in the statement of profit or loss when the right of payment has been established, except when the Company benefits from such proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity instruments designated at fair value through OCI are not subject to impairment assessment.

The Company does not have equity investments classified under this category.

#### Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with net changes in fair value recognized in the statement of profit or loss.

This category includes derivative instruments and listed equity investments which the Company had not irrevocably elected to classify at fair value through OCI. Dividends on listed equity investments are recognized as other income in the statement of profit or loss when the right of payment has been established.

The Company does not have financial assets measured at fair value through profit or loss.

#### Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognized when:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The rights to receive cash flows from the asset have expired or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a 'pass-through' arrangement; and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

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**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 4. Significant accounting policies (cont.)

#### Impairment
Further disclosures relating to impairment of financial assets are also provided in the following notes:

<u></u> <u></u> <u> • Significant accounting judgements, estimates and assumptions </u>   <u> Note 4.1. </u> <br> <u> • Trade and other receivables </u>   <u> Note 7. </u>

The Company recognizes an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Company expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

ECLs are recognized in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).

For trade receivables and contract assets, the Company applies a simplified approach in calculating ECLs. Therefore, the Company does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each reporting date. The Company has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment.

The Company considers a financial asset in default when contractual payments are 90 days past due. However, in certain cases, the Company may also consider a financial asset to be in default when internal or external information indicates that the Company is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Company. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows.

#### Financial liabilities

#### Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities as loans and borrowings, or as payables, as appropriate.

The Company's financial liabilities include trade and other payables, and loans and borrowings including bank overdrafts. Such financial liabilities are recognized initially at fair value and net of directly attributable transaction costs.

#### Subsequent measurement
For purposes of subsequent measurement, financial liabilities are classified in two categories:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Financial liabilities at fair value through profit or loss

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Financial liabilities at amortized cost (loans and borrowings).

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**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 4. Significant accounting policies (cont.)

#### Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss.

Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the Company that are not designated as hedging instruments in hedge relationships as defined by IFRS 9 — Financial Instruments. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments.

Gains or losses on liabilities held for trading are recognized in the statement of profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the initial date of recognition, and only if the criteria in IFRS 9 are satisfied.

#### Financial liabilities at amortized cost (loans and borrowings)
This is the category most relevant to the Company. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the EIR amortization process.

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the statement of profit or loss.

This category generally applies to interest-bearing loans and borrowings. For more information, refer to Note 14.

#### Derecognition
A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of profit or loss.

#### Warrants
During 2022, the Company issued warrant agreements to provide investors with the ability to obtain Series D-2 Preferred Shares.

Such warrants are either classified as liabilities or equity, based on the terms of the contract. Warrants can only be classified as equity if one of the following conditions are met:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the issuer has an unconditional right to avoid delivering cash or another financial instrument; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if the warrant is settled through the Company's own equity instruments, it is for an exchange of a fixed amount of cash for a fixed number of the Company's own equity instruments.

Warrants are measured at fair value through an option pricing model, at the date in which the agreement is entered into.

In case the warrants are classified as equity, as it compares to an equity-settled plan, no fair value measurement is made at each reporting date and the Company recognizes an expense of granting the shares and the corresponding increase in equity on the date of the agreement (the grant date). Conversely, if the warrants are classified as financial liabilities, they are subsequently measured at amortized cost (net of transaction costs) until it is extinguished on redemption.

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**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 4. Significant accounting policies (cont.)
The warrants issued by the Company are classified as equity instruments.

#### Offsetting of financial instruments
Financial assets and financial liabilities are offset, and the net amount is reported in the consolidated statement of financial position if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.

#### Employee benefits

#### Post-employment benefits

#### Defined contribution plan
A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity (pension funds or insurance companies). The Company has no legal or constructive obligations to pay further contributions. These contributions are recognized as employee benefit expense as incurred; on the date the contribution is required.

#### Short-term employee benefits
The Company grants benefits that are expected to be settled within 12 months and after the closing date of the statement of financial position in which the employees render the services. It includes vacations and the employee's profit-sharing determined based on the fulfillment of the proposed objectives. The liability for short-term benefits is measured based on the best estimate of the disbursement required to settle the obligation at the reporting date.

#### Termination benefits
The Company recognizes termination benefits to employees when it decides to terminate the employment contract before the normal retirement date or when the employee accepts an offer of benefits in exchange for the termination of the employment contract.

Termination benefits are classified as short-term employee benefits and are recognized in profit or loss when the termination benefits are expected to be fully settled within 12 months after the end of the reporting period. They are classified as long-term employee benefits only when termination benefits are expected to be settled more than 12 months after the end of the reporting period.

#### Share-based payments
Employees (including senior executives) of the Company receive remuneration in the form of share-based payments, whereby employees render services as consideration for equity instruments (equity-settled transactions).

These awards are in the form of a stock option plan, which is offered to employees as authorized by the appropriate authoritative body of the Company, in order to ensure:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Employee retention,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. The proper performance of their responsibilities during their tenure, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Compensation for their permanence with the Company.

The share options correspond to Class B shares of the Company, which do not have voting privileges but retain all other economic benefits associated with its outstanding shares.

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**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 4. Significant accounting policies (cont.)
The stock option is "call" purchase option on Company Class B shares on a one-to-one basis with an exercise price of one Colombian peso (nominal amount).

The grant date for each eligible employee is formalized by signing a standard contract between the employee and an authorized representative of the Company.

The Company's standard stock option plan has a vesting period of 4 years, which incorporates a cliff vesting term of 2 years for employees to vest in 50% of their shares and ratably each subsequent 3-month period for a total of 48 months. The Company has also granted stock options to employees in 2020 and 2021 as compensation for their salaries which vest ratably over 6-month periods from their grant date. Employees who are terminated with cause or leave the Company to go to a competitor before vesting in their stock options will forfeit any unvested amounts. The Company estimates the potential forfeitures in order to estimate the expense to be recognized and adjusts this estimate based on the actual forfeitures.

The Company recognizes the expense associated with the employee's service contract using a graded vesting model with a corresponding increase to equity.

As the Company is not publicly traded, there is no readily available market value for their shares. To determine the fair value of the Company's stock options, management uses as a reference the share price of capitalizations made by its investors, which most closely coincide with the grant date of the options to employees and an option pricing model to determine the fair value of the options at their grant date.

The vested options will be automatically converted into Class B shares upon the occurrence of a liquidity event, which would include the Company finalizing an initial public offering.

#### Provisions

#### General
Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the Company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognized as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit or loss net of any reimbursement.

The Company maintains lease contracts for distribution centers. To meet the needs of space and form of the properties suitable for its operation, The Company has made leasehold improvements, which must be removed once the Company stops using the facilities. Therefore, the Company's management must estimate a provision for the dismantling of such leasehold improvements, which are expected to be paid in the long-term. As of December 31, 2022, and 2021, such amounts are not significant.

#### Taxes

#### Current income tax
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the reporting date in the countries where the Company operates and generates taxable income.

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**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 4. Significant accounting policies (cont.)
Current income tax relating to items recognized directly in equity is recognized in equity and not in the statement of profit or loss. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

#### Deferred tax
Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax liabilities are recognized for all taxable temporary differences, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In respect of taxable temporary differences associated with investments in subsidiaries when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

Deferred tax assets are recognized for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In respect of deductible temporary differences associated with investments in subsidiaries, deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are re-assessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

In assessing the recoverability of deferred tax assets, the Company relies on the same forecast assumptions used elsewhere in the financial statements and in other management reports, which, among other things, reflect the potential impact of climate-related development on the business.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

Deferred tax relating to items recognized outside profit or loss is recognized outside profit or loss. Deferred tax items are recognized in correlation to the underlying transaction either in OCI or directly in equity.

The Company offsets deferred tax assets and deferred tax liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities

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**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 4. Significant accounting policies (cont.)
which intend either to settle current tax liabilities and assets on a net basis, or to realize the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

#### Share capital
The Company's capital share is made up of ordinary shares.

Incremental costs directly attributable to the issuance of new shares or options are shown in equity as a deduction from the amount received, net of taxes.

#### Net revenue
The Company sells products through its platform and provides delivery services. Net revenue is recognized when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The Company has generally concluded that it is the principal in its revenue arrangements because it typically controls the goods or services before transferring them to the customer, except for the sale of products of third-party merchants through the Company's platform ("marketplace sales"), on which arrangements it acts as an intermediary and recognizes the related income as an agent.

#### Digital retail sales
Revenue from retail sales of the Company's own products is recognized at a point in time, when control of the asset is transferred to the customer, generally on delivery of the products at the customer's location. There are no financing components in these types of transactions.

The Company considers whether there are other promises in the contract that are separate performance obligations to which a portion of the transaction price needs to be allocated. The delivery service is derived from the sale of products; therefore, it is not considered a separate performance obligation. In determining the transaction price for the sale of products, the Company considers the effects of variable consideration and consideration payable to the customer.

**a. Variable consideration**

If the consideration in a contract includes a variable amount, the Company estimates the amount of consideration to which it will be entitled in exchange for transferring the goods to the customer. The variable consideration is estimated at contract inception and constrained until it is highly probable that a significant revenue reversal in the amount of cumulative revenue recognized will not occur when the associated uncertainty with the variable consideration is subsequently resolved. The purchase orders provide customers with a right to return the goods within a specified period, giving rise to a variable consideration.

#### Loyalty points program
The Company has a loyalty program, which allows customers to accumulate online cash (expire after a period of less than 2 weeks) that can be utilized in subsequent purchases. The loyalty program in the form of cash back gives rise to a separate performance obligation as it provides a material right to the customer.

A portion of the transaction price is allocated to the cash back awarded to customers based on relative stand-alone selling price and recognized as a contract liability until the cashback is redeemed. Revenue is recognized upon redemption of products by the customer. The outstanding cash back granted through the loyalty program as of December 31, 2022, and 2021, is not significant.

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**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 4. Significant accounting policies (cont.)
In addition, the Company has partnerships with merchants and financial institutions, on which Merqueo sells coupons (with an expiration of 2 years) to these entities and are ultimately delivered to final customers to promote certain products or incentivize the use of a specific credit card or payment method provided by the financial institutions. The Company assumes only a small portion of the price of the coupon and those are recognized as a contract liability, until they are redeemed, and revenue is recognized.

The Company updates its estimates of the cash that will be redeemed as of each reporting period and any adjustments to the contract liability balance are charged against revenue.

#### Marketplace sales
The role of the Company in the sale of products of merchants through the platform is to facilitate the sale to the final customer. The Company concluded that it does not control the products received by merchants to be distributed to the final customers, since the Company does not buy, nor does it obtain control of the products before the transfer to the final customer and is not responsible for the risk associated with inventory. Although the Company has an input in setting the price of the product, by setting a margin over the price given by the merchant, the later and the final customer have the discretion of accepting the transaction price and this indicates that the Company does not have control over the sale transaction.

Therefore, in the sale of products from third-party merchants, the Company acts as an agent by connecting the sale with the final customers. The Company recognizes income on a net basis, representing the commission that it expects to receive in exchange for the services provided, and recognizes as deferred income in the item of other non-financial liabilities, the consideration that it receives from clients and will be remitted to the merchants.

The Company charges a fee to the final customer for the delivery service of the products of merchants to the addresses of the customers, for whom couriers are hired to carry out the service. In this type of transaction, the Company acts as the principal and presents the gross income for the delivery of products as it is responsible for the service.

#### Other revenue
Other revenue consists of contracts with customers for sales of reusable products and cardboard primarily, whose costs are comprised of promises to deliver these products based on established contractual terms and conditions, which do not involve a significant judgment to be determined. The Company's performance obligation is not partially satisfied since it is derived from the sale of products and is satisfied at a point in time when the customer accepts the products. Payment terms are short-term, without variable considerations, or financing components or guarantees.

The Company recognizes revenue at a point in time, when control of the products sold has been transferred to the customer, which is given by the moment of delivery of the promised goods to the customer in accordance with the negotiated contractual terms. Therefore, the Company recognizes a receivable when the performance obligations have been fulfilled, recognizing the corresponding revenue.

#### Contract balances

#### Trade receivables
A receivable is recognized if an amount of consideration that is unconditional is due from the customer (i.e., only the passage of time is required before payment of the consideration is due). Refer to accounting policies of financial assets in section financial instruments — initial recognition and subsequent measurement.

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**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 4. Significant accounting policies (cont.)

#### Contract liabilities
A contract liability is recognized if a payment is received, or a payment is due (whichever is earlier) from a customer before the Company transfers the related goods or services. Contract liabilities are recognized as revenue when the Company performs under the contract (i.e., transfers control of the related goods or services to the customer).

#### Liabilities arising from rights of return.

#### Returns liabilities.
A return liability is recognized for the obligation to refund some, or all the consideration received (or receivable) from a customer via credits in the platform that can be used to purchase additional products. The Company's returns liabilities arise from customers' right of return. The liability is measured at the amount the Company ultimately expects it will have to return to the customer. The Company updates its estimates of returns liabilities (and the corresponding change in the transaction price) at the end of each reporting period.

#### Cost and expenses
Costs and expenses are recognized in profit or loss for the year when a decrease in economic benefits has arisen related to a decrease in assets or an increase in liabilities and their value is reliably measurable.

Costs and expenses include all direct expenses incurred and necessary to make sales and necessary expenses to provide services, such as depreciation of property, plant and equipment, personnel services, expenses for service contracts, repairs and maintenance, operating costs, insurance, fees, short-term leases, or variable income, among others.

#### Loss per basic and diluted share
Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to the Company, between the weighted average of the common shares in circulation during the period, not considering, if any, the common shares acquired by the Company and held as treasury shares.

The Company has a stock option plan issued to certain employees (see Note 4.3h), which are potentially dilutive. Diluted earnings per share is calculated by dividing the net profit or loss for the period attributable to the Company by the weighted average number of common shares that would be issued if all potential dilutive common shares were converted.

The Company grants share-based payments to its employees and has warrants agreements to issue preferred shares, which generates a dilutive effect in the earnings per share amount; however, these effects were not recognized in the years ended December 31, 2022, and 2021, since the Company has a loss in the reporting periods, and the recognition of anti-dilutive effects is not permitted.

#### Cash and cash equivalents
Cash and cash equivalents in the statement of financial position comprise cash at banks and on hand and short-term highly liquid deposits with a maturity of three months or less, that are readily convertible to a known amount of cash and subject to an insignificant risk of changes in value.

For the purpose of the consolidated statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Company's cash management.

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**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 4. Significant accounting policies (cont.)

#### Non-current assets held for sale and discontinued operations
The Company classifies non-current assets and disposal groups as held for sale if their carrying amounts will be recovered mainly through a sale transaction rather than through continuing use.

A non-current asset that is to be abandoned is not classified as held for sale, because its carrying amount will be recovered mainly through continuing use. However, if the disposal group to be abandoned meets the following criteria, it is classified as a discontinued operation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• It is a component of an entity that either has been disposed of, or is classified as held for sale and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Represents a separate major line of business or geographical area of operations,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Is a part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Is a subsidiary acquired exclusively with a view to resale.

Non-current assets (or disposal groups) to be abandoned include non-current assets (or disposal groups) that are to be used to the end of their economic life and no-current assets (or disposal groups) that are to be closed rather than sold.

Additional disclosures are provided in Note 35. All other notes to the financial statements include amounts for continuing operations, unless indicated otherwise.

#### Note 5. New and amended standards and interpretations

#### Note 5.1. Application of new and revised International Financial Reporting Standards that are mandatorily effective for 2022
In the current year, the Company has applied a series of amendments, issued by the IASB that are effective for annual periods that begin on or after January 1, 2022, which is the date as of these amendments were adopted. The conclusions related to their adoption are described below.

#### Amendments to IAS 16 — Economic benefits before the intended use of property, plant, and equipment
The amendments prohibit entities from deducting from the cost of an item of property, plant and equipment, any proceeds from the sale of items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, an entity should recognize the proceeds from selling such items, and the costs of producing those items, in profit or loss.

The amendments are applied retrospectively to elements of property, plant and equipment carried to the location and condition necessary for it to be available for use in the manner intended by management on or after the beginning of January 1, 2022. Early application was permitted.

The adoption of this amendment did not have an effect on the Company's consolidated financial statements as it does not currently deduct those items of property, plant, and equipment.

#### Amendments to IAS 37 — Costs of fulfilling a contract
The amendments specify that the costs of fulfilling a contract comprise the "directly related costs". The costs that relate directly to a contract to provide goods or services include both incremental costs (e.g., the costs of direct labor and materials) and an allocation of costs directly related to contract activities (e.g., depreciation of equipment used to fulfill the contract as well as costs of contract management and supervision).

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**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 5. New and amended standards and interpretations (cont.)
The amendments must be applied prospectively to contracts for which the Company has not yet fulfilled all its obligations on or after January 1, 2022. Early application was permitted.

The adoption of this amendment did not have a significant effect on the Company's consolidated financial statements as it does not have costs of fulfilling contracts.

#### Amendments to IFRS 9 — Financial instruments
The amendments specify which costs an entity needs to consider when assessing whether a refinancing of a financial liability qualifies as an extinguishment or a modification, clarifying that an entity includes only costs paid or received between the borrower or lender on the other's behalf, including costs paid or received by the entity or the borrower on the other's behalf.

These amendments had no impact on the consolidated financial statements of the Company as there were no modifications of the Company's financial liabilities during the period.

#### Note 5.2. New and revised IFRS issued but not yet effective
As of the date of authorization of these consolidated financial statements, the Company has not applied the following new and revised IFRS that have been issued but are not yet effective. The Company is in the process of determining the impacts that the adoption of these amendments would represent in its financial statements:

#### Amendments to IAS 1 and IFRS Practice Statement 2 — Disclosure of Accounting Policies
The amendments require an entity to disclose its material accounting policies, instead of its significant accounting policies. Further amendments explain how an entity can identify a material accounting policy and add examples of when an accounting policy is likely to be material. It clarifies that an accounting policy can be material by its nature, even if the amounts are immaterial, as well as if the users of the financial information need it for their understanding of other information in the financial statements.

Guidance and examples have also been developed to support the amendments and to demonstrate the application of the "Four-step materiality process" outlined in IFRS Practice Statement 2.

The amendments are applied prospectively for annual reporting periods beginning on or after January 1, 2023, with earlier application permitted.

The Company does not expect these amendments will require the Company to disclose any additional information in its accounting policies disclosed in the consolidated financial statements.

#### Amendments to IAS 8 — Definition of accounting estimates
The amendments replace the definition of a change in accounting estimates with a definition of accounting estimates. Under the new definition, accounting estimates are "monetary amounts in the financial statements that are subject to uncertainty in the measurement".

Entities develop accounting estimates if accounting policies require items in financial statements to be measured in a way that involves measurement uncertainty. The amendments clarify that a change in accounting estimate that results from new information or new developments is not the correction of an error. It is also specified that changes in an item or measurement technique used for developing an accounting estimate, are changes in accounting estimates if they are not the result of correcting prior periods. The effect of the change in the current year is recognized in profit or loss.

The amendments are applied prospectively for annual reporting periods beginning on or after January 1, 2023. Early application was permitted.

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**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 5. New and amended standards and interpretations (cont.)
The Company does not expect impacts of adopting these modifications, since all the estimates that are currently disclosed in the consolidated financial statements have a direct impact on the monetary measurement of assets, liabilities, income, and expenses.

#### Amendment to IAS 12 — Deferred tax related to assets and liabilities arising from a single transaction
The amendment introduces an exception to the initial recognition of a deferred tax provided by IAS 12. Applying this exception, the Company will no longer apply the initial recognition exemption to transactions that give rise to equal taxable and deductible differences. For example, the amendments are applied to taxable and deductible temporary differences associated with right-of-use assets and lease liabilities, as well as dismantling obligations and the applicable recognized as assets at the beginning of the first comparative period presented.

The amendments are applied to transactions that occur on or after the beginning of the earliest comparative period presented, effective for annual reporting periods beginning on or after January 1, 2023. Early adoption was permitted.

The Company evaluated the potential impacts associated with the adoption of the amendments on its consolidated financial statements; however, it does not expect any impact in its consolidated financial statements since it does not consider the exemption in which equal amounts of deductible and taxable temporary differences arise on initial recognition.

#### Amendments to IAS 1 — Classification as current or non-current.
The amendments seek to promote consistency in the application of accounting principles and requirements to determine whether, in the statement of financial position, debt or loans and other liabilities with an uncertain settlement date should be classified as current (because they are payable in the short-term or potentially to be settled within a year) or non-current. The amendments clarify the changes are only on the presentation of liabilities in the statement of financial position and not on the disclosures, amount, or timing of the recognition of any asset, liability, income, or expense related to the liability in question. Additionally, the amendments clarify that the presentation in the statement of financial position is not affected by the expectations of management to exercise its right to defer the settlement of the liability, but by the rights in form at the end of the reporting period.

Finally, the amendments modify the requirements of IAS 1 of current and non-current liabilities by specifying that if an entity's right to defer settlement of a liability is subject to the entity complying with the required covenants at a date subsequent to the reporting period ("future covenants"), the entity has a right to defer settlement of the liability even if it does not comply with those covenants at the end of the reporting period. An entity has to disclose information in the notes that enables users of financial statements to understand the risk that non-current liabilities with covenants could become repayable within twelve months.

The amendments are applied retrospectively for annual periods beginning on or after January 1, 2024. Early application is permitted.

The Company does not expect these modifications will have an impact on its accounting policies, since it classifies its liabilities according to contractual maturities, without considering the future refinancing plans that it defines in its liquidity financial risk management strategy.

#### Amendments to IFRS 16 — Lease liability in a sale and leaseback transaction
The amendments require a seller-lessee to subsequently measure lease liabilities arising from a leaseback in a way that it does not recognize any amount of the gain or loss that relates to the right-of-use asset it retains. The new requirements do not prevent a seller-lessee from recognizing in profit or loss any gain or loss relating to the partial or full termination of a lease.

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**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 5. New and amended standards and interpretations (cont.)
The amendments are effective for annual reporting periods beginning on or after January 1, 2024. Early application is permitted. The Company is in the process of assessing the impacts in the adoption of the amendments for sale and leaseback transactions where it acts as a seller-lessee.

#### Note 6. Cash and cash equivalents
The balance of cash and cash equivalents is the following:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br>2022** | **December 31, <br>2021** |
|  Cash at banks and on hand | 3750463 | 7179021 |
|  Short-term Investments | 665550 | 1473890 |
|  Other cash equivalents | 2047 | 17962 |
|  **Total cash and cash equivalents** | **4418060** | **8670873** |

---

Most cash in banks earns interest at floating rates based on daily bank deposit rates. Short-term investments are made for varying periods of between one day and three months, depending on the immediate cash requirements of the Company, and earn interest at the respective short-term deposit rates.

For the year ended December 31, 2022, the Company generated financial income from cash and cash equivalents of $84,779 ($24,340 in 2021), these were recognized as financial income, the detail is in Note 28.

The balance of restricted cash is as follows:

---

| | | |
|:---|:---|:---|
|  **Cash restricted** | **December 31, <br>2022** | **December 31, <br>2021** |
|  Short-term Investments<sup>(1)</sup> | 662593 | 1472681 |
|  Cash at banks and on hand<sup>(2)</sup> | 641275 | 519277 |
|  **Total cash restricted** | **1303868** | **1991958** |

---

____________

(1) Corresponds to cash held in trusts whose purpose is guaranteeing payment of the Company's obligations.

(2) Corresponds to the percentage that the payment platforms temporarily retain for possible claims, which are released after compliance with the policies.

The remaining of cash and cash equivalent does not present restrictions that limit its use.

#### Note 7. Trade and other accounts receivable
The balance of the trade and other accounts receivable is as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2021** |
|  Trade receivables (Note 7.1.) | 2151863 | 4582127 |
|  Other accounts receivable (Note 7.2.) | 5814004 | 3455888 |
|  **Total** | **7965867** | **8038015** |
|  **Current** | **6575022** | **6491137** |
|  **Non-current** | **1390845** | **1546878** |

---

[**Table of Contents**](#TOC001)

**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 7. Trade and other accounts receivable (cont.)

#### Note 7.1. Trade receivables
The balance of the trade receivables is as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2021** |
|  Customers | 851495 | 707285 |
|  Advertising<sup>(1)</sup> | 778810 | 883490 |
|  Trade marketing | 649684 | 2735668 |
|  Shippers | 120030 | 102302 |
|  Receivables for coupons sold | 25702 | 206140 |
|  Other trade receivables |  | 3918 |
|  Allowance for expected credit losses | (273858) | (56676) |
|  **Total trade receivables** | **2151863** | **4582127** |

---

____________

(1) Corresponds to accounts receivable from suppliers for advertising services in the platform. Such amount is not offset against the suppliers account since there is not an enforceable legal right to settle them on a net basis.

Trade receivables are non-interest bearing and are generally negotiated on terms of 30 to 180 days.

The roll-forward of the expected credit losses is the following:

---

| | |
|:---|:---|
|  **As of December 31, 2020** | **1386447** |
|  Provision for expected credit losses during the period | 327673 |
|  Write-offs | (1657444) |
|  **As of December 31, 2021** | **56676** |
|  Provision for expected credit losses during the period | 862261 |
|  Write-offs | (645079) |
|  **As of December 31, 2022** | **273858** |

---

#### Note 7.2. Other accounts receivable
The balance of the other accounts receivable is as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br>2022** | **December 31, <br>2021** |
|  Tax receivable<sup>(1)</sup> | 4028719 | 1822395 |
|  Security deposits | 1390845 | 1546878 |
|  Social security receivable | 224371 | 85657 |
|  Other receivables | 170069 | 958 |
|  **Total other accounts receivable** | **5814004** | **3455888** |

---

____________

(1) The tax receivable corresponds to those taxes that the Company has a right to recover, the detail of these is as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2021** |
|  Value added tax | 3964593 | 1724587 |
|  COFINS to recover in Brazil | 33053 | 47475 |
|  ICMS to recover in Brazil | 23104 | 39983 |
|  PIS to recover in Brazil | 7969 | 10350 |
|  **Total tax receivable** | **4028719** | **1822395** |

---

[**Table of Contents**](#TOC001)

**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 7. Trade and other accounts receivable (cont.)

#### Note 7.3. Trade and other accounts receivable classified as current and non-current
The balance of trade and other accounts receivable classified as current and non-current is as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br>2022** | **December 31, <br>2021** |
|  **Current** |  |  |
|  Tax receivable | 4028719 | 1822395 |
|  Customers | 851495 | 707285 |
|  Advertising | 778810 | 883490 |
|  Trade marketing | 649684 | 2735668 |
|  Social security receivable | 224371 | 85657 |
|  Other receivables | 170069 | 4876 |
|  Shippers | 120030 | 102302 |
|  Receivables for coupons sold | 25702 | 206140 |
|  Allowance for expected credit losses | (273858) | (56676) |
|  **Total current** | **6575022** | **6491137** |
|  **Non-current** |  |  |
|  Security deposits | 1390845 | 1546878 |
|  **Total non-current** | **1390845** | **1546878** |
|  **Total** | **8007142** | **8038015** |

---

#### Note 7.4. Credit losses and maturity of trade accounts receivable

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  **As of December 31, 2022** | **Balance <br>for the <br>year** | **Unexpired** | **Expired <br>from 1 to <br>90 days** | **Expired <br>from 91 to <br>180 days** | **Expired <br>from 181 to <br>360 days** | **Expired <br>more than <br>360 days** | **Total <br>expired** |
|  Non-expired and non-impaired trade receivables | 474750 | 474750 |  |  |  |  |  |
|  Expired but non-impaired trade receivables | 1677113 |  | 1674856 | 2257 |  |  | 1677113 |
|  Impairment trade receivables | 273858 |  | 273858 |  |  |  | 273858 |
|  Impairment | (273858) |  | (273858) |  |  |  | (273858) |
|  **Total trade receivables** | **2151863** | **474750** | **1674856** | **2257** | **—** | **—** | **1677113** |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  **As of December 31, 2021** | **Balance for the year** | **Unexpired** | **Expired from 1 to 90 days** | **Expired from 91 to 180 days** | **Expired from 181 to 360 days** | **Expired more than 360 days** | **Total expired** |
|  Non-expired and non-impaired trade receivables | 4012529 | 4012529 |  |  |  |  |  |
|  Expired but non-impaired trade receivables | 569598 |  | 515335 | 54263 |  |  | 569598 |
|  Impairment trade receivables | 56676 |  | 6094 | 50582 |  |  | 56676 |
|  Impairment | (56676) |  | (6094) | (50582) |  |  | (56676) |
|  **Total trade receivables** | **4582127** | **4012529** | **515335** | **54263** | **—** | **—** | **569598** |

---

The impairment in trade and other accounts receivable is estimated for delivery and customers.

[**Table of Contents**](#TOC001)

**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 8. Prepaid expenses
The balance of prepaid expenses is as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2021** |
|  Advance payments to suppliers | 619174 | 372331 |
|  Contractors and suppliers | 174209 | 107827 |
|  Insurance and securities | 48493 | 79920 |
|  Payroll and social securities | 42299 | 38875 |
|  Maintenance |  | 6460 |
|  **Total** | **884175** | **605413** |

---

#### Note 9. Inventories and cost of sales

#### Note 9.1. Inventories
The balance of inventories is as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br>2022** | **December 31, <br>2021** |
|  Groceries and related products | 4153020 | 8390650 |
|  General cleaning | 806356 | 2047504 |
|  Fresh and perishable products | 162589 | 793968 |
|  Beverages and related products | 475462 | 527646 |
|  Other products for sale | 150624 | 614842 |
|  **Total** | **5748051** | **12374610** |

---

The Company recognized an expense in cost of sales for inventories carried at net realizable value for the years ended December 31, 2022, and 2021, in the amount of $345,350 and $365,777, respectively. Additionally, the Company does not have pledged inventories that limit their sale.

Among the Company's commercial strategy, complete orders are guaranteed to the customers, which might cause selling the inventory at a reduced price, decreasing inventory's net realizable value.

#### Note 9.2. Cost of sales
The information related to the cost of sales associated with the sales of inventories is presented below:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br>2022** | **December 31, <br>2021** |
|  Cost of goods sold for sales of inventories | 120806776 | 188102570 |
|  Depreciation of right-of-use assets | 4532360 | 4569108 |
|  Payroll | 1407028 | 1218454 |
|  **Total cost of sales** | **126746164** | **193890132** |

---

[**Table of Contents**](#TOC001)

**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 10. Other financial assets
The balance of other financial assets is as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br>2022** | **December 31, <br>2021** |
|  Financial assets measured at fair value | 619331 | 335788 |
|  **Total** | **619331** | **335788** |

---

Financial assets measured at fair value correspond to investments made with financial institutions denominated Time Deposit Certificates ("CDTs" for its acronym in Spanish) on which the Company has them as a guarantee of certain lease liabilities which cannot be disposed of until the contract is settled.

#### Note 11. Property and equipment, net
Set out below is the balance of property and equipment, net:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br>2022** | **December 31, <br>2021** |
|  Computer and communication equipment | 3886379 | 4055844 |
|  Leasehold improvements | 1158962 | 3684473 |
|  Machinery and equipment | 1041569 | 2947653 |
|  Furniture and fixtures | 1674801 | 1072918 |
|  Assets in development |  | 102353 |
|  Other | 79252 | 17994 |
|  **Total cost of property and equipment** | **7840963** | **11881235** |
|  Accumulated depreciation | (2789642) | (4898233) |
|  Impairment<sup>(1)</sup> |  | (1291493) |
|  **Total property and equipment, net** | **5051321** | **5691509** |

---

____________

(1) During the year ended December 31, 2022, there was no impairment recognized in the value of property and equipment. For the year ended December 31, 2021, there was an impairment in the value of property and equipment due to the closing of the operations in Mexico and therefore these assets have been fully impaired as they are not expected to be recoverable.

Movements in the cost, depreciation and impairment of property and equipment, net, during the year ended December 31, 2022, and 2021, are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  **Cost** | **Computer and <br>communication <br>equipment** | **Leasehold <br>improvements** | **Machinery and <br>equipment** | **Furniture <br>and fixtures** | **Assets in <br>development** | **Other** | **Total** |
|  **As of December 31, 2020** | **1911819** | **3203326** | **3045427** | **575079** | **—** | **17327** | **8752978** |
|  Additions | 1878729 | 731196 | 61032 | 117798 | 102353 | 17994 | 2909102 |
|  Disposals | (156973) | (557086) | (372953) |  |  |  | (1087012) |
|  Exchange differences | 31736 | 47090 | 38777 | 23020 |  |  | 140623 |
|  Net movements from discontinued operations | 390533 | 259947 | 175370 | 357021 |  | (17327) | 1165544 |
|  **As of December 31, 2021** | **4055844** | **3684473** | **2947653** | **1072918** | **102353** | **17994** | **11881235** |
|  Additions | 508923 | 1778580 | 274872 | 937268 |  | 54737 | 3554380 |
|  Disposals | (338077) | (3479346) | (1884599) | (86875) |  |  | (5788897) |
|  Transfers |  |  | 102353 |  | (102353) |  |  |
|  Exchange differences | 93946 | 111218 | 2878 | 128418 |  | 6521 | 342981 |
|  Net movements from discontinued operations | (434257) | (935963) | (401588) | (376928) |  |  | (2148736) |
|  **As of December 31, 2022** | **3886379** | **1158962** | **1041569** | **1674801** | **—** | **79252** | **7840963** |

---

[**Table of Contents**](#TOC001)

**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 11. Property and equipment, net (cont.)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  **Depreciation** | **Computer and <br>communication <br>equipment** | **Leasehold <br>improvements** | **Machinery and <br>equipment** | **Furniture <br>and fixtures** | **Assets in <br>development** | **Other** | **Total** |
|  **As of December 31, 2020** | **694068** | **2023908** | **583458** | **95445** | **—** | **—** | **3396879** |
|  Additions | 503970 | 1022253 | 114719 | 142814 |  | 300 | 1784056 |
|  Disposals | (95284) | (525591) | (10105) | (38937) |  |  | (669917) |
|  Exchange differences | 3106 | 17687 | 3800 | 3600 |  |  | 28193 |
|  Net movements from discontinued operations | 47508 | 271454 | 65612 | (25552) |  |  | 359022 |
|  **As of December 31, 2021** | **1153368** | **2809711** | **757484** | **177370** | **—** | **300** | **4898233** |
|  Additions | 788471 | 677342 | 184276 | 128705 |  | 1799 | 1780593 |
|  Disposals | (257992) | (2908118) | (306352) | (4594) |  |  | (3477056) |
|  Exchange differences | 15171 | 13337 | 221 | 8415 |  |  | 37144 |
|  Net movements from discontinued operations | (52830) | (321957) | (51163) | (23322) |  |  | (449272) |
|  **As of December 31, 2022** | **1646188** | **270315** | **584466** | **286574** | **—** | **2099** | **2789642** |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  **Impairment** | **Computer and <br>communication <br>equipment** | **Leasehold <br>improvements** | **Machinery and <br>equipment** | **Furniture <br>and fixtures** | **Assets in <br>development** | **Other** | **Total** |
|  **As of December 31, 2020** | **—** | **—** | **—** | **—** | **—** | **—** | **—** |
|  Net movements from discontinued operations | 381427 | 203996 | 350425 | 355645 |  |  | 1291493 |
|  **As of December 31, 2021** | **381427** | **203996** | **350425** | **355645** | **—** | **—** | **1291493** |
|  Net movements from discontinued operations | (381427) | (203996) | (350425) | (355645) |  |  | (1291493) |
|  **As of December 31, 2022** | **—** | **—** | **—** | **—** | **—** | **—** | **—** |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  **Net book value<sup>(1)</sup>** | **Computer and <br>communication <br>equipment** | **Leasehold <br>improvements** | **Machinery and <br>equipment** | **Furniture <br>and fixtures** | **Assets in <br>development** | **Other** | **Total** |
|  **As of December 31, 2020** | **1217751** | **1179418** | **2461969** | **479634** | **—** | **17327** | **5356099** |
|  **As of December 31, 2021** | **2521049** | **670766** | **1839744** | **539903** | **102353** | **17694** | **5691509** |
|  **As of December 31, 2022** | **2240191** | **888647** | **457103** | **1388227** | **—** | **77153** | **5051321** |

---

____________

(1) The gain or loss from disposals of property and equipment is disclosed in note 27.

As of December 31, 2022, and 2021, the Company does not have pledged property and equipment or restrictions that limit their sale and there are no commitments for the acquisition, construction or development of new property or equipment.

#### Note 12. Right-of-use assets, net
The Company leases various property and equipment, including distribution centers, furniture and fixtures, communication equipment, and refrigeration equipment. The average term of the lease contracts as of December 31, 2022, and 2021, is 5 years for distribution centers, and 5 to 6 years for the rest of the leased assets, according to the lease term agreed with the financial institution.

[**Table of Contents**](#TOC001)

**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 12. Right-of-use assets, net (cont.)
The right-of-use asset recognized in the consolidated statement of financial position as of December 31, 2022, and 2021, is as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br>2022** | **December 31, <br>2021** |
|  Distribution centers | 15312131 | 23527624 |
|  Other<sup>(1)</sup> | 1651643 | 1736841 |
|  Furniture and fixtures | 1245494 | 1245494 |
|  Computer and communication equipment | 893082 | 678974 |
|  Refrigeration equipment | 1389514 | 580921 |
|  **Total cost of right-of-use** | **20491864** | **27769854** |
|  Accumulated depreciation | (10083583) | (9416701) |
|  **Total right-of-use, net** | **10408281** | **18353153** |

---

____________

(1) Corresponds to a single contract for the sale and leaseback of furniture, computer and communication equipment and refrigeration equipment (see note 19).

The movements in the right-of-use assets for the periods ended December 31, 2022, and 2021 are the following:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  **Cost** | **Distribution <br>centers** | **Other** | **Furniture and <br>fixtures** | **Computer and <br>communication <br>equipment** | **Refrigeration <br>equipment** | **Total** |
|  **As of December 31, 2020** | **20656669** | **1738602** | **1047002** | **459079** | **188889** | **24090241** |
|  Additions | 6239797 |  | 198492 | 219895 | 392032 | 7050216 |
|  Lease modifications | 270203 |  |  |  |  | 270203 |
|  Cancellations | (418491) | (1761) |  |  |  | (420252) |
|  Exchanges differences | 57872 |  |  |  |  | 57872 |
|  Net movements from discontinued operations | (3278426) |  |  |  |  | (3278426) |
|  **As of December 31, 2021** | **23527624** | **1736841** | **1245494** | **678974** | **580921** | **27769854** |
|  Additions | 3408482 |  |  | 216955 | 808593 | 4434030 |
|  Lease modifications | 1319203 |  |  |  |  | 1319203 |
|  Cancellations | (13642351) | (85198) |  | (2847) |  | (13730396) |
|  Exchanges differences | 699173 |  |  |  |  | 699173 |
|  **As of December 31, 2022** | **15312131** | **1651643** | **1245494** | **893082** | **1389514** | **20491864** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  **Accumulated depreciation** | **Distribution <br>centers** | **Other** | **Furniture and <br>fixtures** | **Computer and <br>communication <br>equipment** | **Refrigeration <br>equipment** | **Total** |
|  **As of December 31, 2020** | **4822729** | **313349** | **39600** | **75872** | **13559** | **5265109** |
|  Depreciation expense | 4125899 | 367559 | 106354 | 91816 | 100007 | 4791635 |
|  Cancellations | (277207) | (264) |  |  |  | (277471) |
|  Exchanges differences | 8682 |  |  |  |  | 8682 |
|  Net movements from discontinued operations | (371254) |  |  |  |  | (371254) |
|  **As of December 31, 2021** | **8308849** | **680644** | **145954** | **167688** | **113566** | **9416701** |
|  Depreciation expense | 4330710 | 206502 | 124550 | 171811 | 190544 | 5024117 |
|  Cancellations | (177779) | (35650) |  | (1139) |  | (214568) |
|  Exchanges differences | (4317342) |  |  |  |  | (4317342) |
|  Net movements from discontinued operations | 174676 |  |  |  |  | 174676 |
|  **As of December 31, 2022** | **8319114** | **851496** | **270504** | **338360** | **304110** | **10083584** |

---

[**Table of Contents**](#TOC001)

**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  **Net book value** | **Distribution <br>centers** | **Other** | **Furniture and <br>fixtures** | **Computer and <br>communication <br>equipment** | **Refrigeration <br>equipment** | **Total** |
|  **As of December 31, 2020** | **15833940** | **1425253** | **1007402** | **383207** | **175330** | **18825132** |
|  **As of December 31, 2021** | **15218775** | **1056197** | **1099540** | **511286** | **467355** | **18353153** |
|  **As of December 31, 2022** | **6993017** | **800147** | **974990** | **554722** | **1085404** | **10408280** |

---

During 2022, and 2021, the Company had no variable lease expenses, no expense for low-value leased assets or short-term leases.

The Company has several lease contracts that include extension and termination options. These options are negotiated by management to provide flexibility in managing the leased-asset portfolio and align with the Merqueo's business needs. Management exercises significant judgement in determining whether these extension and termination options are reasonably certain to be exercised (see Note 4).

In 2021, due to impairment indicators of Mexico's reporting segment, the Company changed the initial estimation of the lease terms for contracts held within this segment to a short-term period, which decreased the right-of-use assets and the corresponding lease liabilities for an amount of $2,907,172.

#### Note 13. Intangible assets, net
The balance of intangible assets, net is the following:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br>2022** | **December 31, <br>2021** |
|  Development costs | 10639116 | 15920729 |
|  **Total cost of intangible** | **10639116** | **15920729** |
|  Accumulated amortization | (2777027) | (2580085) |
|  **Total intangible assets, net** | **7862089** | **13340644** |

---

Development costs consist mainly of payroll expenses paid to personnel in the technology area who are working on activities associated with the Company's digital platform in accordance with the accounting policy established.

Movements in the intangible assets, during the periods ended December 31, 2022, and 2021 are as follows:

---

| | | |
|:---|:---|:---|
|  **Cost** | **Developments <br>costs** | **Total** |
|  **As of December 31, 2020** | **9743346** | **9743346** |
|  Additions | 7082932 | 7082932 |
|  Write-offs | (905549) | (905549) |
|  **As of December 31, 2021** | **15920729** | **15920729** |
|  Additions | 3667608 | 3667608 |
|  Write-offs | (8949221) | (8949221) |
|  **As of December 31, 2022** | **10639116** | **10639116** |

---

---

| | | |
|:---|:---|:---|
|  **Amortization** | **Developments <br>costs** | **Total** |
|  **As of December 31, 2020** | **553638** | **553638** |
|  Amortization expense | 2184918 | 2184918 |
|  Write-offs | (158471) | (158471) |
|  **As of December 31, 2021** | **2580085** | **2580085** |
|  Amortization expense | 1947879 | 1947879 |
|  Write-offs | (1750937) | (1750937) |
|  **As of December 31, 2022** | **2777027** | **2777027** |

---

[**Table of Contents**](#TOC001)

**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 13. Intangible assets, net (cont.)

---

| | | |
|:---|:---|:---|
|  **Net book value** | **Developments <br>costs** | **Total** |
|  **As of December 31, 2020** | **9189708** | **9189708** |
|  **As of December 31, 2021** | **13340644** | **13340644** |
|  **As of December 31, 2022** | **7862089** | **7862089** |

---

As of December 31, 2022, and 2021, the Company has no pledged intangible assets that limit their sale. Additionally, the Company has no acquisition or development commitments of intangible assets.

For the years ended December 31, 2022, and 2021, research expenses recognized in the consolidated income statement amounted to $4,608,091 and $2,387,245, respectively, which are recognized within the category of technology expenses.

During 2022 and 2021, the Company had indicators that Mexico's segment was impaired.

As a result, during 2022 and 2021, the Company had a write-off of intangible assets of $7,198,284 and $747,078, respectively, internally developed by the Colombia's segment, but originally designated to be used in Mexico's segment (discontinued operation) and operations lines closed. As of December 31, 2022, and 2021, the Company has not recognized any other impairment on its intangible assets.

#### Note 14. Interest-bearing loans and borrowings
The amounts of the interest-bearing loans and borrowings are the following:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br>2022** | **December 31, <br>2021** |
|  Borrowing | 109314686 | 7846139 |
|  Interest-bearing loans (credit cards) | 203997 | 100429 |
|  **Total interest-bearing loans and borrowings** | **109518683** | **7946568** |
|  **Current** | **9169123** | **6667981** |
|  **Non-current** | **100349560** | **1278587** |

---

The detail of interest-bearing loans and borrowing between current and non-current is as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br>2022** | **December 31, <br>2021** |
|  **Current** |  |  |
|  Borrowing | 8965126 | 6567552 |
|  Interest-bearing loans (credit cards) | 203997 | 100429 |
|  **Total current** | **9169123** | **6667981** |
|  **Non-current** |  |  |
|  Borrowing | 100349560 | 1278587 |
|  **Total non-current** | **100349560** | **1278587** |
|  **Total interest-bearing loans and borrowings** | **109518683** | **7946568** |

---

[**Table of Contents**](#TOC001)

**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 14. Interest-bearing loans and borrowings (cont.)
The detail of the borrowings is the following:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  **Bank** | **Date** | **Currency** | **Maturity<sup>(1)</sup>** | **Amount<sup>(2)</sup>** | **Interest rate** | **2022** | **2021** |
|  Blue Like an Orange Sustainable Capital | 04/26/2022 | USD | 84 | 18000000 | Daily SOFR + 9% | 90541436 |  |
|  BID Invest – IDB Invest | 04/26/2022 | USD | 84 | 3180000 | Daily SOFR + 9% | 15773890 |  |
|  Banco de Bogotá S.A. | 10/10/2019 | COP | Not applicable<sup>(3)</sup> | 500000 | 4.60% | 454806 | 727092 |
|  Banco de Bogotá S.A. | 02/09/2022 | COP | 12 | 1000000 | 13.09% | 166667 |  |
|  Banco de Occidente S.A. | 04/28/2021 | COP | 24 | 685000 | IBR + 3.40% | 113828 | 456667 |
|  Banco de Occidente S.A. | 02/23/2021 | COP | 24 | 542046 | IBR + 5.25% | 45169 | 316194 |
|  Banco de Occidente S.A. | 07/15/2021 | COP | 24 | 390000 | IBR + 3.96% | 113076 | 308750 |
|  Banco de Occidente S.A. | 01/25/2022 | COP | 36 | 730000 | 13.79% | 506944 |  |
|  Bancolombia S.A. | 09/07/2021 | COP | 24 | 2000000 | IBR + 7.47% | 750000 | 1750000 |
|  Bancolombia S.A. | 12/30/2021 | COP | 24 | 511000 | IBR + 9.55% | 255500 | 511000 |
|  Bancolombia S.A. | 02/14/2022 | COP | 12 | 495426 | 13.04% | 82550 |  |
|  Bancolombia S.A. | 02/11/2022 | COP | 12 | 545052 | 12.82% | 90820 |  |
|  Bancolombia S.A. | 03/31/2022 | COP | 24 | 630000 | 16.13% | 420000 |  |
|  Banco Davivienda S.A. | 12/07/2021 | COP | 12 | 550000 | IBR + 4.5% |  | 550000 |
|  Banco Davivienda S.A. | 07/22/2021 | COP | 12 | 350000 | IBR MV + 1.71% + 4.2% |  | 204165 |
|  Banco Davivienda S.A. | 04/28/2021 | COP | 12 | 257000 | IBR MV + 1.71% + 4.2% |  | 85664 |
|  Banco Davivienda S.A. | 04/01/2021 | COP | 12 | 280000 | IBR MV + 1.70% + 4.00% |  | 46659 |
|  Banco de Bogotá S.A. | 05/30/2020 | COP | 18 | 1297000 | 5.58% |  | 353506 |
|  Banco de Bogotá S.A. | 02/08/2021 | COP | 12 | 2603000 | 5.22% |  | 433833 |
|  Banco de Comercio Exterior de Colombia S.A. | 11/26/2020 | COP | 24 | 1300000 | DTF + 6.5% |  | 595834 |
|  Bancolombia S.A. | 09/04/2020 | COP | 24 | 833000 | IBR + 5.80% |  | 312375 |
|  Bancolombia S.A. | 12/04/2020 | COP | 24 | 569000 | IBR + 6.79% |  | 284500 |
|  Bancolombia S.A. | 08/01/2021 | COP | 12 | 461984 | IBR + 8.15% |  | 76997 |
|  Dann Regional Compañía de Financiamiento Comercial S.A. | 11/06/2020 | COP | 18 | 3000000 | DTF |  | 832903 |
|  **Total** |  |  |  | **40709508** |  | **109314686** | **7846139** |

---

____________

(1) The maturity is established in months.

(2) Represents the amount disposed of the bank loan.

(3) Corresponds to a revolving credit line.

As of December 31, 2022, and 2021, the Company is in compliance with all of its debt covenants. The Company has covenants associated with three of its borrowings as described below:

#### Bancolombia
The Bancolombia loan includes a covenant establishing that if the Company were to present its financial statements on a liquidation basis of accounting and not on a going concern basis that it would be in default. Given that the Company's financial statements are presented on a going concern basis, it is in compliance with this covenant.

#### BLAO Loan
On November 14, 2022, the Company obtained the BLAO Waiver 2 under the BLAO Loan Agreement, pursuant to which BLAO waived the Company's obligation to make the interest payment that was scheduled to be paid on October 15, 2022 and any event of default that may result. Additionally, the Company agreed to amend the BLAO Loan Agreement to capitalize such interest payment and include it in the outstanding amount of principal effective as of October 15, 2022 and to allow for the Corporate Reorganization. As of December 31, 2022, the Company is in compliance with the BLAO Loan Agreement.

[**Table of Contents**](#TOC001)

**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 14. Interest-bearing loans and borrowings (cont.)

#### IDB Loan
On December 20, 2022, pursuant to Amendment No. 1 and Undertaking Agreement (as defined below) the Company obtained a limited waiver from IDB-I related to the defaults on covenants under the IDB-I Loan Agreement specifically related to (i) obligation to deliver within 45 days after each financial quarter a certificate of an authorized representative including an explanation of the key operating variables and calculations in reasonable detail demonstrating compliance with the financial covenants under the IDB-I Loan Agreement, or detailing any non-compliance; and (ii) the obligation to provide, after each financial quarter, the management statements and presentations delivered to the board of directors showing the Company's and its subsidiaries' financial performance.

Pursuant to the Amendment No. 1 and Undertaking Agreement, the Company is required to comply with such obligations no later than June 30, 2023. Given that these provisions are within the Company's control and are not based on financial metrics it needs to maintain, management expect to be able to comply with the pending requirements by June 30, 2023, and have therefore presented such outstanding loan as non-current as of December 31, 2022.

The Company currently has granted different guarantees in connection with the IDB and BLAO loans. The Company has granted a first pledge over 100% of Merqueo International's Shares. The Company has granted a first pledge over 100% of Merqueo International S.A.S., proportionally by 81.82% to BLAO and 18.18% to IDB. The Company has granted a first pledge over 100% of Merqueo Comércio Varejista e Intermediacao de Negocios Ltda, proportionally by 81.82% to BLAO and 18.18% to IDB. The Company has granted a first pledge over 100% of Merqueo S.A de C.V., divided in 81.82% to BLAO and 18.18% to IDB.

Changes in interest-bearing loans and borrowings during the period are the following:

---

| | |
|:---|:---|
|  **As of December 31, 2020** | **11790689** |
|  Interest expense | 1489867 |
|  Increases of new debt and cash inflows | 4916118 |
|  Decreases for payments of debt and interest | (10250106) |
|  **As of December 31, 2021** | **7946568** |
|  Increases of new debt and cash inflows | 91168909 |
|  Issuance costs | (2644396) |
|  Interest expense | 7876172 |
|  Decreases for payments of debt and interest | (10657979) |
|  Exchange differences | 15829409 |
|  **As of December 31, 2022** | **109518683** |

---

Interest-bearing loans and borrowings are measured using the effective interest method. For the year ended December 31, 2022, the Company incurred $3,738,788 of issuance costs associated with the Company's liabilities, which are being amortized according to the effective interest method over the contractual term of such obligations. As of December 31, 2021, there were no issuance costs associated with the Company's liabilities.

[**Table of Contents**](#TOC001)

**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 15. Employee benefits
The balance of the accounts payable corresponding to employee benefits recognized in the consolidated statement of financial position is summarized as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br>2022** | **December 31, <br>2021** |
|  Salaries and contributions | 517729 | 525841 |
|  Social security contributions | 1914246 | 2481788 |
|  Defined contributions benefits | 1339141 | 2676838 |
|  Other personnel expenses<sup>(1)</sup> | 1413371 |  |
|  **Total employee benefits** | **5184487** | **5684467** |

---

____________

(1) Corresponds to payroll taxes in Brazil.

#### Note 16. Suppliers and other payables
The balance of suppliers and other payables is as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br>2022** | **December 31, <br>2021** |
|  Suppliers | 12991385 | 40124336 |
|  Cost and expenses payable | 8119517 | 5056392 |
|  Marketing payables | 6314676 | 3553514 |
|  Other taxes payables<sup>(1)</sup> | 1093261 | 1020749 |
|  Delivery and warehouse personnel | 416252 | 1699582 |
|  Collected taxes payable<sup>(1)</sup> | 289771 | 85783 |
|  Employee contributions payable | 57471 | 2305 |
|  Other payables | 3522 |  |
|  **Total suppliers and other payables** | **29285855** | **51542661** |

---

____________

(1) All taxes payable correspond to those obligations in which the Company fulfills tasks of collecting taxes and must pay them to the tax entity of each country, the detail is presented below:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br>2022** | **December 31, <br>2021** |
|  IRRF payable | 614232 | 85797 |
|  Withholding tax payable | 467224 | 630368 |
|  Value added tax payable | 268735 | 85783 |
|  ICMS payable | 18786 |  |
|  Other taxes payable | 14055 | 304584 |
|  **Total** | **1383032** | **1106532** |

---

[**Table of Contents**](#TOC001)

**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 17. Accounts payable to related parties and related party transactions

#### Note 17.1. Accounts payable to related parties
The balance of accounts payable to related parties is as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br>2022** | **December 31, <br>2021** |
|  Shareholders<sup>(1)</sup> | 32169787 | 5609999 |
|  **Total** | **32169787** | **5609999** |
|  **Current** | **28258254** | **982875** |
|  **Non-current** | **3911533** | **4627124** |

---

____________

(1) Accounts payable to shareholders correspond to loans to support the operations of the Company.

The conditions of the loans are as following:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  **Obligation** | **Date** | **Currency** | **Maturity date** | **Value** | **Interest <br>rate** | **December 31, <br>2022** | **December 31, <br>2021** |
|  Note convertible into shares<sup>(1)</sup> | 09/15/2022 | USD | September 2023 | 3000000 | 10.00% EA | 14865886 |  |
|  Note convertible into shares<sup>(1)</sup> | 11/02/2022 | USD | November 2023 | 1111111 | 18.00% EA | 5052354 |  |
|  Note convertible into shares<sup>(1)</sup> | 11/17/2022 | USD | November 2023 | 555556 | 18.00% EA | 2496747 |  |
|  Note convertible into shares<sup>(1)</sup> | 12/08/2022 | USD | December 2023 | 555556 | 18.00% EA | 2452845 |  |
|  Loan Portland JSX Limited | 12/22/2022 | USD | May 2023 | 200000 | 15.00% EA | 965375 |  |
|  Loan Portland JSX Limited | 12/28/2022 | USD | May 2023 | 300000 | 15.00% EA | 1443685 |  |
|  Loan MGM Energy Efficiency Colombia S.A.S.<sup>(2)</sup> | 05/26/2021 | COP | June 2027 | 2944091 | 17.74% EA | 2756405 | 3029699 |
|  Loan MGM Energy Efficiency Colombia S.A.S.<sup>(2)</sup> | 05/26/2021 | COP | June 2027 | 2494479 | 19.99% EA | 2136490 | 2580300 |
|  **Total** |  |  |  |  |  | **32169787** | **5609999** |

---

____________

(1) On September 15, 2022, as part of the Series D finance round, the Company entered into a convertible debt note agreement for US$3,000,000 ($13,169,400) with Portland Private Equity Group ("Convertible Debt Note"). This Convertible Debt Note has a termination date of September 12, 2023, or upon the consummation of an initial public offering, and is convertible into Series D preferred shares of the Company. In the months of November and December, additional funds from Portland Private Equity Group through the issuance of similar convertible debt notes with the same characteristics of US$2,222,223 ($11,044,193) were received.

(2) The Company entered into a set of agreements with MGM Energy Efficiency Colombia S.A.S. ("MGM") under which it obtained a financing of up to $5,438,570 (the "MGM Financing Agreement"). The MGM Financing Agreement was provided to support the operating cash flows of the Company for the purchase of relevant equipment for use in warehouses. As of December 31, 2022, the outstanding amount of principal owed is $4,892,894, which shall be paid on a monthly basis over a period of 70 months.

[**Table of Contents**](#TOC001)

**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 17. Accounts payable to related parties and related party transactions (cont.)
Set out below are the changes in these liabilities:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Portland Fund <br>II CO Invest <br>Partnership** | **Portland JSX <br>Limited** | **MGM Energy <br>Efficiency <br>Colombia S.A.S.** | **Total** |
|  **As of December 31, 2020** | **—** | **—** | **—** | **—** |
|  Additions |  |  | 5609999 | 5609999 |
|  Interest expense |  |  | 1665076 | 1665076 |
|  Payments |  |  | (1665076) | (1665076) |
|  **As of December 31, 2021** | **—** | **—** | **5609999** | **5609999** |
|  Additions | 13169400 | 13426297 |  | 26595697 |
|  Issuance costs |  | (1094392) |  | (1094392) |
|  Interest expense | 430928 | 383399 | 885413 | 1699740 |
|  Payments |  |  | (1602517) | (1602517) |
|  Exchange differences | 1265558 | (304298) |  | 961260 |
|  **As of December 31, 2022** | **14865886** | **12411006** | **4892895** | **32169787** |

---

#### Note 17.2. Related party transactions

#### Key management personnel compensation
Transactions between the Company and key management personnel, including legal representatives and or managers, correspond mainly to the employment relationship entered between the parties.

Compensation of key management personnel is as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br>2022** | **December 31, <br>2021** |
|  Wages and salaries | 3653772 | 4005631 |
|  Other employee benefits<sup>(1)</sup> | 217723 | 590990 |
|  Share based payments | 94451 | 585742 |
|  **Total compensation for employee benefits** | **3965946** | **5182363** |

---

____________

(1) Includes post-employment benefit expense, defined contribution plans, among others.

#### Related party transactions.
Transactions with related parties correspond to the sale of goods, as well as costs and expenses related to interest expense on loans. The amount of revenue, costs and expenses with related parties is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Revenue** | **Revenue** | **Cost and expenses** | **Cost and expenses** |
|  | **December 31, <br>2022** | **December 31, <br>2021** | **December 31, <br>2022** | **December 31, <br>2021** |
|  Shareholders | 808592 |  | 69412845 | 310340 |
|  Key management | 13102 | 286 |  |  |
|  Board of directors | 49651 |  |  |  |
|  **Total related party transactions** | **871345** | **286** | **69412845** | **310340** |

---

The related party transactions included in this section do not need to comply with transfer pricing requirements, since the related parties correspond to board members and shareholders that do not have control over the Company and that have a percentage of ownership of less than 50%.

[**Table of Contents**](#TOC001)

**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 18. Lease liabilities
The balance of lease liabilities corresponds to several fixed assets, including distribution centers, furniture and fixtures, computer and communication equipment and refrigeration equipment, as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br>2022** | **December 31, <br>2021** |
|  Distribution centers | 7963661 | 17187928 |
|  Other<sup>(1)</sup> | 699319 | 1116526 |
|  Furniture and fixtures | 423288 | 825079 |
|  Computer and communication equipment | 495745 | 494237 |
|  Refrigeration equipment | 285634 | 421168 |
|  **Total** | **9867647** | **20044938** |
|  **Current** | **4230219** | **5766400** |
|  **Non-current** | **5637428** | **14278538** |

---

____________

(1) Corresponds to a single sale and leaseback agreement of furniture and fixtures, communication equipment and refrigeration equipment in 2021.

Set out below are the changes in the lease liabilities:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Distribution <br>centers** | **Other** | **Furniture <br>and fixtures** | **Computer and <br>communication <br>equipment** | **Refrigeration <br>equipment** | **Total** |
|  **As of December 31, 2020** | **17147086** | **1518305** | **960567** | **402340** | **162793** | **20191091** |
|  Additions | 6178349 |  | 198492 | 197905 | 392031 | 6966777 |
|  Contract modifications | 270203 |  |  |  |  | 270203 |
|  Interest expense | 2286023 | 95320 | 45140 | 30436 | 26159 | 2483078 |
|  Payments | (5564845) | (497099) | (379120) | (136444) | (159815) | (6737323) |
|  Cancellations | (479765) |  |  |  |  | (479765) |
|  Exchange differences | 356362 |  |  |  |  | 356362 |
|  Net movements from discontinued <br>operations | (3005485) |  |  |  |  | (3005485) |
|  **As of December 31, 2021** | **17187928** | **1116526** | **825079** | **494237** | **421168** | **20044938** |
|  Additions | 3561994 |  |  | 216955 |  | 3778949 |
|  Contract modifications | 828113 |  |  |  |  | 828113 |
|  Interest expense | 2105026 | 117407 | 77779 | 19620 | 95539 | 2415371 |
|  Payments | (5927854) | (534614) | (479570) | (235067) | (231073) | (7408178) |
|  Cancellations | (10407229) |  |  |  |  | (10407229) |
|  Exchange differences | 615683 |  |  |  |  | 615683 |
|  **As of December 31, 2022** | **7963661** | **699319** | **423288** | **495745** | **285634** | **9867647** |

---

The following are the undiscounted contractual lease payments as of December 31, 2022, and 2021:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br>2022** | **December 31, <br>2021** |
|  Less than 1 year | 5015952 | 9174753 |
|  More than 1 year and less than 3 years | 5720971 | 23333845 |
|  More than 3 years and less than 5 years | 1083027 | 2849596 |
|  **Total fixed minimum lease payments** | **11819950** | **35358194** |

---

[**Table of Contents**](#TOC001)

**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 19. Income taxes and other taxes
The Company is subject to income tax:

In Colombia the tax rate was 31% for 2021 and will be 35% for 2022 and in subsequent years. The statutory income tax rate in Mexico is 30% for all periods presented, and for Brazil it depends on the results obtained in the period to which it would be subject to income tax. Merqueo Holdings (located in Cayman) has a 20-year tax exemption starting on September 16, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The amounts of income tax expense in the consolidated income statement are summarized as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br>2022** | **December 31, <br>2021** |
|  Current income tax expense | 1449 |  |
|  **Total** | **1449** | **—** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. The reconciliation of effective income tax rate and the statutory tax rate is summarized as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br>2022** | **December 31, <br>2021** |
|  **Loss before income tax expense** | **(270304315)** | **(125677711)** |
|  Income tax rate | 35.00% | 31.00% |
|  **Income tax** | **94606510** | **38960090** |
|  **Adjustments to reconcile the rate** |  |  |
|  Unrecognized deferred tax assets | (54096163) | (38223584) |
|  Warrants | (30149920) |  |
|  Non-deductible items | (10430809) | (9325498) |
|  Non-taxable income |  | 119861 |
|  Exchange differences and Tax adjustments for changes in the applicable rate | (520) | 8983994 |
|  Other | 69453 | (514863) |
|  **Income tax at the effective rate** | **(1449)** | **—** |
|  **Effective tax rate** | **(0.001)%** | **0.000%** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. The detail of the net deferred income tax asset is as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Tax rate** | **Deferred tax basis** | **Deferred tax** | **Tax rate** | **Deferred tax basis** | **Deferred tax** |
|  Tax losses | 35.00% & 34.00% | 344212647 | 119994419 | 31.00% | 205957532 | 71927013 |
|  Leases | 35.00% & 34.00% | 1344053 | 468961 | 31.00% | 2323127 | 810523 |
|  Intangibles | 35.00% & 34.00% | 185671 | 64985 | 31.00% | 1630887 | 570810 |
|  Provisions | 35.00% & 34.00% | 6820496 | 2348467 | 31.00% | 850062 | 296216 |
|  Properties and equipment | 35.00% & 34.00% | 273790 | 95826 | 31.00% | 111347 | 38972 |
|  Liability for returns | 35.00% & 34.00% | 72515 | 25380 | 31.00% | 124937 | 43728 |
|  Inventories | 35.00% & 34.00% | 287826 | 100739 | 31.00% | 863056 | 294773 |
|  Trade receivables | 35.00% & 34.00% | 28176 | 9861 | 31.00% | 35382 | 12384 |
|  Intangibles | 35.00% & 34.00% | 16237 | 5683 | 31.00% | 32475 | 11366 |
|  Stock options | 35.00% & 34.00% | 238844 | 83595 | 31.00% | 101692 | 35592 |
|  Other | 35.00% & 34.00% | 15145987 | 5301095 | 31.00% | 1072800 | 361471 |
|  **Total** |  | **368626242** | **128499011** |  | **213103297** | **74402848** |
|  **Unrecognized deferred tax** |  |  | **128499011** |  |  | **74402848** |

---

[**Table of Contents**](#TOC001)

**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 19. Income taxes and other taxes (cont.)
As of 2017, Colombian companies will be able to offset tax losses with the taxable income generated in the 12 taxable periods after obtaining the aforementioned negative tax bases.

As of December 31, 2022, and 2021, the Company has deductible temporary differences for which a deferred tax asset in the amount of $24,413,595 and $7,145,765, respectively, is not recognized, and losses of $344,212,647 and $205,957,532, respectively, for which no deferred tax asset has been recognized, its recoverability is not probable. Additionally, the tax base of the investment in subsidiaries of the Company amounts to $58,601,752, which generates deductible differences as the accounting base of said investments is zero. No deferred tax assets are recognized as the temporary difference is not expected to reverse in the foreseeable future.

Tax losses as of December 31, 2022, are due in the following years:

---

| | | |
|:---|:---|:---|
|  **Year of origin of loss** | **Expiration <br>year** | **Balance to be <br>amortized as <br>December 31, <br>2021** |
| 2016 | Infinite | 4776156 |
| 2017 | 2029 | 9993289 |
| 2018 | 2030 | 21620225 |
| 2019 | 2031 | 45793340 |
| 2020 | 2032 | 35516296 |
| 2021 | 2033 | 78278994 |
| 2021 | 2027<br><sup>(1)</sup> | 12481368 |
| 2022 | 2034 | 100233588 |
| 2022 | 2028<br><sup>(1)</sup> | 35519391 |
|  **Total** |  | **344212647** |

---

____________

(1) Corresponds to tax losses of Brazil, which have an expiration of 5 years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. The taxes to be recovered are integrated as follows:

---

| | | |
|:---|:---|:---|
|  **Recoverable taxes** | **December 31, <br>2022** | **December 31, <br>2021** |
|  Income tax receivable | 8047790 | 6322265 |
|  Taxes receivable | 12591 | 12591 |
|  Other taxes | 5936 | 4678 |
|  Tax advance | 1157 |  |
|  Collected taxes payable |  | 42623 |
|  **Total current tax assets** | **8067474** | **6382157** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Taxes payables are integrated as follows:

---

| | | |
|:---|:---|:---|
|  **Other taxes payable** | **December 31, <br>2022** | **December 31, <br>2021** |
|  Industry and commerce tax payable | 485722 | 92790 |
|  Income tax payable | 1449 |  |
|  Other taxes payables | 114 |  |
|  Social security payable |  | 27798 |
|  **Total current tax payables** | **487285** | **120588** |

---

[**Table of Contents**](#TOC001)

**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 20. Other non-financial liabilities
The balance of other non-financial liabilities is the following:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br>2022** | **December 31, <br>2021** |
|  Refund liability | 837351 | 1025267 |
|  Contract liabilities | 445009 | 750273 |
|  Other | 193770 | 180767 |
|  Cash flows received from marketplace sales |  | 493355 |
|  Prepayments |  | 187717 |
|  **Total other non-financial liabilities** | **1476130** | **2637379** |
|  **Current** | **1282360**  | **2637379**  |
|  **Non-current** | **193770**  | **—**  |

---

#### Note 21. Capital stock and additional paid-in capital

#### Capital stock.
As of December 31, 2022, the Merqueo Holdings' authorized capital is represented by 12,000,000,000 shares with a nominal value of US$0.000208 dollars, such authorized shares are not designated for each class of shares until they are subscribed. The capital to be subscribed is equivalent to 1,486,882,193 shares, thus the subscribed and paid capital amounts of $1,486,882 Colombian pesos, represented by the number of outstanding shares which is 1,486,882,193. The 10,513,117,807 authorized and not subscribed shares available to be issued can be used for new share issuances, as well as the exercise of the stock options associated with the Company's share-based payment plans and any other similar instruments that can be converted into shares (warrants or convertible notes, as applicable), given that Colombia does not require a specific reserve for the issuance of instruments that can potentially be converted into an entity's shares.

As of December 31, 2021, the Merqueo S.A.S.' authorized capital is represented by 1,000,000,000 shares with a nominal value of $1 Colombian peso, such authorized shares are not designated for each class of shares until they are subscribed. The capital to be subscribed is equivalent to 324,136,074 shares, thus the subscribed and paid capital amounts of $675,863, represented by the number of outstanding shares which is 675,863,926. The 324,136,074 authorized and not subscribed shares available to be issued can be used for new share issuances, as well as the exercise of the stock options associated with the Company's share-based payment plans and any other similar instruments that can be converted into shares (warrants or convertible notes, as applicable), given that Colombia does not require a specific reserve for the issuance of instruments that can potentially be converted into an entity's shares.

The rights granted over the shares, correspond to the following:

---

| | | | |
|:---|:---|:---|:---|
|  **Type of share** | **Characteristics** | **Numbers of shares** | **Total <br>percentage** |
|  Common class A | Economic and voting rights  | 308434214 | 20.74% |
|  Common class B | Economic rights  | 27236835 | 1.83% |
|  Preferred – Series A | Non-participating – 1x liquidation preference, economic and voting rights  | 114581438 | 7.71% |
|  Preferred – Series B | Non-participating – 1x liquidation preference, economic and voting rights  | 74577784 | 5.02% |
|  Preferred – Additional series B | Non-participating – 1x liquidation preference, economic and voting rights  | 15018281 | 1.01% |
|  Preferred – Series C1 | Non-participating – 1x liquidation preference, economic and voting rights  | 277739168 | 18.68% |
|  Preferred – Series C2 | Non-participating – 1x liquidation preference, economic and voting rights  | 58448579 | 3.93% |
|  Preferred – Series C3 | Non-participating – 1x liquidation preference, economic and voting rights  | 8601157 | 0.58% |
|  Preferred – Series D1 | Non-participating – 1x liquidation preference, economic and voting rights  | 602244737 | 40.50% |
|  **Total** |  | **1486882193** |  |

---

[**Table of Contents**](#TOC001)

**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 21. Capital stock and additional paid-in capital (cont.)
The reconciliation of the number of issued shares outstanding subscribed and fully paid as of December 31, 2022, and 2021, is the following:

Of Merqueo Holdings is the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  **Type of share** | **As of <br>September 13, <br>2022** | **Additions** | **Redemption** | **As of <br>December 31, <br>2022** |
|  Ordinary class A | 1 | 308434214 | (1) | 308434214 |
|  Ordinary class B |  | 27236835 |  | 27236835 |
|  Preferred – Series A |  | 114581438 |  | 114581438 |
|  Preferred – Series B |  | 74577784 |  | 74577784 |
|  Preferred – Additional series B |  | 15018281 |  | 15018281 |
|  Preferred – Series C1 |  | 277739168 |  | 277739168 |
|  Preferred – Series C2 |  | 58448579 |  | 58448579 |
|  Preferred – Series C3 |  | 8601157 |  | 8601157 |
|  Preferred – Series D1 |  | 602244737 |  | 602244737 |
|  **Total subscribed and paid capital** | **1** | **1486882193** | **(1)** | **1486882193** |

---

Of Merqueo S.A.S. is the following:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  **Type of share** | **As of <br>December 31, <br>2020** | **Additions** | **As of <br>December 31, <br>2021** | **Additions** | **As of <br>December 31, <br>2022<sup>(1)</sup>** |
|  Common class A | 308434214 |  | 308434214 |  | 308434214 |
|  Common class B | 27236835 |  | 27236835 |  | 27236835 |
|  Preferred – Series A | 114581438 |  | 114581438 |  | 114581438 |
|  Preferred – Series B | 74577784 |  | 74577784 |  | 74577784 |
|  Preferred – Additional series B | 11577301 | 3440980 | 15018281 |  | 15018281 |
|  Preferred – Series C1 |  | 68965638 | 68965638 | 208773530 | 277739168 |
|  Preferred – Series C2 |  | 58448579 | 58448579 |  | 58448579 |
|  Preferred – Series C3 |  | 8601157 | 8601157 |  | 8601157 |
|  Preferred – Series D1 |  |  |  | 602244737 | 602244737 |
|  **Total subscribed capital** | **536407572** | **139456354** | **675863926** | **811018267** | **1486882193** |

---

____________

(1) Disclosed for informative purposes only. The capital stock balance as of December 31, 2022, is Merqueo Holdings', considering the Corporate Reorganization described in Note 1.

The increases in the class of shares represent the increases in capital stock since the nominal amount of each share is $1 Colombian peso. There are no subscribed shares that have not being paid, nor shares held by the Company or by its subsidiaries. Additionally, there are no shares reserved for issuance under the share-based payment program of the Company. Each tranche of the Company's share-based payment plan has been duly authorized by the appropriate levels of governance and are within the limit of shares authorized for issuance by our shareholders. The Company will issue newly subscribed shares upon the exercise of the employee stock options.

[**Table of Contents**](#TOC001)

**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Additional paid-in capital
As of December 31, 2022, and 2021, the additional paid-in capital represents the higher value paid over the nominal value of the shares, which amounts to $390,677,741 and $224,329,382, respectively. In accordance with legal regulations, this balance may be distributed when the Company is liquidated, or its value is capitalized. Capitalization is carried out when a portion of the share premium is transferred to a capital account as a result of the issuance of a stock issuance.

During 2022 and 2021, the Company subscribed 811,018,267 and 139,456,354 shares, respectively for an amount of $811,019 and $139,456 recognized as capital stock and $166,348,359 and $102,956,381 within additional paid-in capital.

#### Compliance with IDB-I investment requirements
In connection with the execution of the Series C Financing Round, in which IDB-I participated as an investor, Merqueo S.A.S. and its subsidiaries entered into an option agreement with IDB-I (the "Put Option") on June 4, 2021, that would be exercisable upon a put notice by IDB-I following a Default Put Trigger Event.

The Put Option includes a standard procedure to remediate after a Trigger Notice is delivered by IDB-I. The following the occurrence of a Put Trigger Event defined as (a) certain policy defaults defined under the policy agreement entered into with, among others, IDB-I, or (b) any action or event which could reasonably be expected to affect the reputation of IDB-I. Following a notice from IDB-I as to the occurrence of a Put Trigger Event, Merqueo S.A.S. will have a period of thirty (30) days to cure such Put Trigger Event or to provide IDB-I with a remediation plan setting. If such plan is not approved by IDB-I or Merqueo S.A.S fails to implement the remediation plan, a Default Put Trigger Event would occur, IDB-I may deliver a put notice, and Merqueo S.A.S would be required to purchase all of IDB-I shares in Merqueo S.A.S. (or shares held by Clean Technology Fund II in Merqueo S.A.S.) at cost.

The total amount of IDB-I's investment in Merqueo is equivalent to U.S. 10 million.

It is within the Company's control to comply with the conditions in the agreement and as of the issuance date of these consolidated financial statements (i) management is not aware of a material breach, (ii) Merqueo would be able to cure a breach according to the abovementioned procedures or to provide IDB-I with a remediation plan without triggering the Put Option and (iii) has not received a Trigger Event Notice in order to initiate the cure process. As a result, no liability has been recorded in the Company's consolidated financial statements as IDB-I does not have the capability to exercise the put option as of December 31, 2021, and 2022, without the cure process, which is within the control of Merqueo.

#### Note 22. Share-based payments and contribution for future capital increases

#### Note 22.1. Share-based payments & warrants
The Company has a share-based payment plan for its employees. As stated in the terms of the plan, eligible employees will obtain share-based payments in accordance with the characteristics of the shares assigned per contract.

The payment will be in equity in the four years following the grant date, with an initial grant period of 24 months to obtain 50% of the incentive. Thereafter, the grant period will be quarterly, at 6.25% through the remaining 24 months. If the employee ceases to provide services for the Company within a period of 24 months from the date on which the benefits in shares were granted, they automatically lose the right to the related option. The fair value is determined on the basis of the black-sholes valuation model.

[**Table of Contents**](#TOC001)

**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 22. Share-based payments and contribution for future capital increases (cont.)
The fair value of the share options granted is determined using an option pricing model, which considers the price of the last capitalization made by the Company from its institutional investors, considering it is the price a market participant is willing to pay for its shares as of the issuance date.

The expense recognized for employee services received during the year is shown in the following table:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br>2022** | **December 31, <br>2021** |
|  Selling expenses | 37956 | 23142 |
|  Administrative expenses | 62602 | 76629 |
|  Technology expenses | 23010 | 18852 |
|  Discontinued operations | (8495) | 278 |
|  **Total expense arising from share-based payment transactions** | **115073** | **118901** |

---

#### Movements during the year
The following table illustrates the number of share options, the movements in share options during the years ended December 31:

---

| | | |
|:---|:---|:---|
|  | **2022 <br>Number of <br>Share options** | **2021 <br>Number of <br>Share options** |
|  **Outstanding as of January 1**<sup>st</sup> | **18413088** | **7914210** |
|  Granted during the year | 3496781 | 12523276 |
|  Forfeited during the year | (4120593) | (2024398) |
|  **Outstanding as of December 31**<sup>st</sup> | **17789276** | **18413088** |
|  **Exercisable as of December 31**<sup>st</sup> | **3884753** | **1979419** |

---

The share options outstanding as of December 31, 2022, and 2021, have an indefinite contractual life since they can be exercised any time once they become vested up until the consummation of a liquidity event.

As of December 31, 2022, there is an unrecognized amount of $216,076 for share-based payments, which is expected to be recognized in subsequent periods.

#### Principal assumptions
The following tables list the inputs to the models used for the share-based payment plan for the years ended December 31, 2022, and 2021, respectively:

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
|  Dividend yield | No dividend <br>payments expected | No dividend <br>payments expected |
|  Expected volatility | 65% | 46.30% |
|  Risk-free interest rate | 4.41% | 0.27% |
|  Expected time for expected liquidity | 1 year | 2 years |
|  Model used | Black-Scholes | Black-Scholes |

---

The expected life of the share options is based on historical data and current expectations and is not necessarily indicative of exercise patterns that may occur. The expected volatility reflects the assumption that the historical volatility over a period similar to the life of the options is indicative of future trends, which may not necessarily be the actual outcome.

[**Table of Contents**](#TOC001)

**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 22. Share-based payments and contribution for future capital increases (cont.)
At the December 2022, Merqueo Holdings shareholder meeting, a reserve of up to 1,314,043,904 common shares was authorized for the employee stock option plan.

#### Warrants
The Company granted 1,751,861,847 warrants during 2022 to certain shareholders and debt holders, which are convertible to shares of the Company in the event of an IPO.

The following tables list the inputs to the models used for the warrants for the year ended December 31, 2022:

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
|  Dividend yield | No dividend <br>payments expected | No dividend <br>payments expected |
|  Expected volatility | 65% | 46.30% |
|  Risk-free interest rate | 4.41% | 0.27% |
|  Expected time for expected liquidity | 1 year | 2 years |
|  Model used | Black-Scholes | Black-Scholes |

---

#### Note 22.2. Contribution for future capital increases
This reserve corresponds to capital contributions authorized by the Company's shareholders, whose amounts represent a fixed amount of cash and qualify as an equity instrument that, due to administrative matters with the local regulator, the capitalization protocol has been delayed.

Movements in contribution for future capital increases, during the periods ended December 31, 2022, and 2021 are as follows:

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
|  **As of December 31, 2020** |  | **22900331** |
|  Advance payments for future capitalization |  | 157880947 |
|  Issue of share capital | 139456354 | (103095837) |
|  **As of December 31, 2021** |  | **77685441** |
|  Advance payments for future capitalization |  | 89473937 |
|  Issue of share capital | 811018267 | (167159378) |
|  **As of December 31, 2022** |  | **—** |

---

#### Note 23. Other comprehensive loss.

#### Other Comprehensive loss
The balance of each component of other comprehensive loss in the statement of financial position is as follows:

---

| | |
|:---|:---|
|  | **Translation <br>effect** |
|  **As of December 31, 2020** | **(64295)** |
|  Movement from continuing operations recognized in other comprehensive loss | (175654) |
|  Movement from discontinued operations recognized in other comprehensive loss | (215951) |
|  **As of December 31, 2021** | **(455900)** |
|  Movement from continuing operations recognized in other comprehensive loss | 2032699 |
|  Movement from discontinued operations recognized in other comprehensive loss | (517679) |
|  **As of December 31, 2022** | **1059120** |

---

[**Table of Contents**](#TOC001)

**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 23. Other comprehensive loss (cont.)
Translation effect: Corresponds to the accumulated value of exchange differences arising from the conversion of the subsidiaries of the Company functional currency into the Company's presentation currency of assets, liabilities, equity, and results of foreign operations. Accumulated translation effect is reclassified to profit or loss for the period when the foreign operation is disposed.

#### Dividends paid and declared.
The Company will distribute dividends based on the conditions in the existing Shareholders Agreement and in connection to the Articles of Association of the Company.

During the years ended December 31, 2022, and 2021, the Company has not declared any dividends due to the Company has accumulated losses.

#### Note 24. Net revenue
Net revenue for the years ended December 31, 2022, and 2021, is as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br>2022** | **December 31, <br>2021** |
|  Digital retail sales<sup>(1)</sup> | 132374053 | 202450832 |
|  Delivery services | 1184049 | 2513657 |
|  Commissions for marketplace sales | 280858 | 540894 |
|  Other ordinary revenue | 67801 | 95567 |
|  **Revenue from contracts with customers** | **133906761** | **205600950** |

---

---

| | | |
|:---|:---|:---|
|  **Timing of revenue recognitions** | **December 31, <br>2022** | **December 31, <br>2021** |
|  Goods and services transferred at a point in time | 133,906,761 | 205,600,950 |
|  **Net revenue** | **133,906,761** | **205,600,950** |

---

____________

(1) The Company made a correction of an immaterial error of $928,249 related to the Brazil business segment, increasing revenue during the nine-month period ended September 30, 2022, that related to the December 31, 2021, year.

#### Contract balances

---

| | | |
|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2021** |
|  Trade receivables (Note 7) | 7,965,867 | 8,038,015 |
|  Contract liabilities and prepayments (Note 20) | 445,009 | 937,990 |

---

Contract liabilities include accumulated cash back that has not yet been redeemed by the Company's customers, which are valid for 1 year from the date of grant, and prepayments consist of advance payments of customers for orders that were not yet delivered as of the reporting date.

The roll forward of contract liabilities and prepayments is disclosed below:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br>2022** | **December 31, <br>2021** |
|  **Contract liabilities at the beginning of the year** | **937990** | **284166** |
|  Coupons granted | 1243593 | 1769870 |
|  Performance obligations satisfied during the year | (1736574) | (1116046) |
|  **Contract liabilities at the end of the year** | **445009** | **937990** |

---

[**Table of Contents**](#TOC001)

**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 24. Net revenue (cont.)
As of December 31, 2022, and 2021, the refund liability for the right granted to the customers is the following:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br>2022** | **December 31, <br>2021** |
|  Refund liability (Note 20) | 837,351 | 1,025,267 |

---

#### Performance obligations
Information about the Company's performance obligations are summarized below:

#### Digital retail sales and delivery of the products
The performance obligations of sale and delivery of the products are satisfied upon delivery of the promised product to the client by a delivery representative from the Company at a single point in time. Such performance obligations are not separated and cannot be partially satisfied.

The single performance obligation has variable payments at a single instance. The customer's payment is subject to discounts, rights of products returns and to price adjustments, without options for financing or warranties.

#### Discounts through customer loyalty programs
The performance obligation is estimated on a historical basis related to the customer's right to redeem discounts in the form of cash back. This amount is calculated based on the expected value method. As of December 31, 2022, and 2021, the balance of this liability was $445,009 and $750,731, respectively, and is recognized under other non-financial liabilities. This obligation is settled at a single point in time upon being redeemed.

#### Sale of third-party products
The performance obligation is based on the Company´s role as an agent for third party merchants whose product can be bought on the platform. The Company has concluded that it has no control over these products, since it does not buy or decides how to use the products before the transfer to the final customer, nor is it responsible for the risk related to the inventory. Although the Company influences the price of the product by establishing a profit margin off the price set by the third-party merchant, the merchant and the client can choose whether to accept the transaction price and thus this indicates that there is no control of the Company over the sale transaction.

In the sale of products from third-party merchants, the Company acts as an agent by connecting the client with the third-party seller. The Company recognizes income on a net basis at a single point in time, representing the commission that it expects to receive in exchange for the services provided, and recognizes deferred income in the non-financial liabilities within the "cashflows received from marketplace sales" account. The consideration that it receives from clients will be remitted to the third-party seller.

[**Table of Contents**](#TOC001)

**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 24. Net revenue (cont.)

#### Delivery services
The performance obligation is satisfied upon providing the delivery service to the third-party merchant's client, by a delivery representative from the Company at a single point in time. In this type of transaction, the Company acts as the principal and recognizes the consideration from the delivery of products as revenue because it is responsible for the service.

#### Other operating revenue
The performance obligation maintained by the Company derives from the sale of reusable products (mainly cardboard) and is satisfied at a point in time, when the products are transferred and accepted by the customer. Payment terms are short-term, without variable considerations, financing components, or guarantees.

#### Note 25. Administrative expenses and selling expenses.

#### Selling expenses
Selling expenses referring to the remuneration of the sales staff, is as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br>2022** | **December 31, <br>2021** |
|  Wages and salaries<sup>(1)</sup> | 21523058 | 18911235 |
|  Social security contributions | 3991356 | 3540011 |
|  Other short-term employee benefits | 3184960 | 2983482 |
|  **Total short-term employee benefit expenses** | **28699374** | **25434728** |
|  Post-employment benefit expense, defined contribution plans | 1380096 | 1554041 |
|  **Total expense for post-employment employee benefits** | **1380096** | **1554041** |
|  Termination benefits<sup>(1)</sup> | 1194957 | 166226 |
|  **Total expense for employee benefits** | **31274427** | **27154995** |

---

____________

(1) The increase in salaries is mainly due to the fact that the operations personnel of Brazil, were through contracts with third parties, as of June 2022, these personnel began to be personnel of the Company.

The remaining selling expenses is as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br>2022** | **December 31, <br>2021** |
|  Services | 21563777 | 23903590 |
|  Advertising | 14821804 | 16123723 |
|  Warehouse maintenance costs and other miscellaneous expenses | 3636792 | 6471235 |
|  Commissions | 2300737 | 2989397 |
|  Benefits to employees and external personnel | 912508 | 2804945 |
|  Credit losses | 714914 | 327673 |
|  **Total other selling expenses** | **43950532** | **52620563** |
|  **Total selling expenses** | **75224959** | **79775558** |

---

[**Table of Contents**](#TOC001)

**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 25. Administrative expenses and selling expenses (cont.)

#### Administrative expenses
The administrative expenses related to the remuneration of the administrative staff, are as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br>2022** | **December 31, <br>2021** |
|  Wages and salaries<sup>(1)</sup> | 25520330 | 18223175 |
|  Social security contributions | 3969338 | 1974261 |
|  Other short-term employee benefits | 3235706 | 2309554 |
|  **Total short-term employee benefit expenses** | **32725374** | **22506990** |
|  Post-employment benefit expense, defined contribution plans | 3430725 | 2431689 |
|  **Total expense for post-employment employee benefits** | **3430725** | **2431689** |
|  Termination benefits | 1136469 | 103096 |
|  **Total expense for employee benefits** | **37292568** | **25041775** |

---

____________

(1) During 2022, the Company hired new administrative personnel and designated country managers for Colombia and Brazil, which increase the wages and salaries in this year.

The remaining administrative expenses is as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br>2022** | **December 31, <br>2021** |
|  Fee expense<sup>(1)</sup> | 18054589 | 1413072 |
|  Non-recoverable income tax | 4022168 | 4596054 |
|  Benefits to employees and external personnel | 2506962 | 1980012 |
|  Depreciation | 2258730 | 2006583 |
|  Services | 1967768 | 1778410 |
|  Other | 1355790 | 571755 |
|  Legal expenses | 1303586 | 1283387 |
|  Representation and travel expenses | 774583 | 2080138 |
|  Commissions | 327505 | 896172 |
|  Insurance | 153374 | 108032 |
|  Contributions and affiliations | 13985 |  |
|  **Total other administrative expenses** | **32739040** | **16713615** |
|  **Total administrative expenses** | **70031608** | **41755390** |

---

____________

(1) The fee expense increased as a result of entering the process of becoming a publicly traded company for this, additional advisors such as lawyers and specialists in this type of transactions were incurred.

#### Note 26. Technology expenses
The amount of technology expenses is as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br>2022** | **December 31, <br>2021** |
|  Technology services | 4608091 | 2387245 |
|  Amortization of intangible assets | 1947879 | 2184918 |
|  Wages and salaries | 23010 | 18852 |
|  Infrastructure costs | 796 | 3324 |
|  **Total technology expenses** | **6579776** | **4594339** |

---

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**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 27. Other operating income and other operating expenses
The amounts of other operating income and other operating expenses for the years ended December 31, 2022, and 2021, is the following:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br>2022** | **December 31, <br>2021** |
|  **Other operating income** |  |  |
|  Income from sale of property and equipment | 873854 |  |
|  Other benefits | 718506 | 802252 |
|  Gain on cancellation of leases<sup>(1)</sup> | 551331 | 386650 |
|  Other non-recurring income | 24229 | 114683 |
|  **Total other operating income** | **2167920** | **1303585** |
|  **Other operating expenses** |  |  |
|  Donations | (53020) | (111234) |
|  Other expenses | (447190) | (2938501) |
|  Non-recoverable taxes, fines and penalties | (2322751) | (1067593) |
|  Loss on disposal of property and equipment | (3122720) | (459150) |
|  Intangible and other assets write-off | (7198284) | (786108) |
|  **Total other operating expenses** | **(13143965)** | **(5362586)** |

---

____________

(1) The gain corresponds to an early termination of distribution center leases, which were initially estimated to be used for a longer period.

#### Note 28. Net financial result
The amount of finance income and expenses is as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br>2022** | **December 31, <br>2021** |
|  **Finance income** |  |  |
|  Interest income on cash and cash equivalents | 84779 | 24340 |
|  Other | 13777 | 23109 |
|  **Total finance income** | **98556** | **47449** |
|  **Finance costs** |  |  |
|  Interest expense on arrears | (394551) |  |
|  Interest expense on accounts payable with related parties | (1699741) | (1665076) |
|  Interest expense on lease liability | (2415371) | (2483078) |
|  Interest expense on loans and borrowings | (7876172) | (1489867) |
|  Warrant expenses (Note 22.1.) | (86142628) |  |
|  **Total finance costs** | **(98528463)** | **(5638021)** |
|  **Net loss on exchange differences** |  |  |
|  Gain on exchange differences | 3045101 | 1256330 |
|  Loss on exchange differences | (19267718) | (2869999) |
|  **Net loss on exchange difference** | **(16222617)** | **(1613669)** |
|  **Net financial result** | **(114652524)** | **(7204241)** |

---

[**Table of Contents**](#TOC001)

**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 29. Loss per share
Losses per share are classified as basic and diluted. Basic losses are intended to provide a measure of the participation of each common share of the Parent Company in the performance that the Company had in the periods presented. Basic losses are calculated by dividing the profit for the year attributable to the ordinary equity holders of the controlling interest by the weighted average number of ordinary shares outstanding during the year.

Diluted shares are intended to provide a measure of the participation of each common share in the Company's performance considering the dilutive effects (reduction in profits or increase in losses) of the potential common shares in circulation during the period. Diluted earnings per share are calculated by dividing the profit of the year attributable to the ordinary equity holders of the controlling interest by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that have dilutive potential. The Company has not presented diluted earnings per share as it has recognized a net loss for all periods, which would result in an antidilutive effect.

The information on earnings per share and number of shares used in the calculations of basic loss per share is shown below:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br>2022** | **December 31, <br>2021** |
|  Net loss attributable to controlling interest | (294421747) | (163943170) |
|  Weighted average shares | 1014349328  | 611675796  |
|  **Basic and diluted loss per share (in Colombian pesos)** | **(290.26)** | **(268.02)** |

---

---

| | | |
|:---|:---|:---|
|  | **December 31, <br>2022** | **December 31, <br>2021** |
|  Net loss from continued operations | (270305764) | (125677711) |
|  Weighted average shares | 1014349328 | 611675796 |
|  **Basic and diluted loss per share (in Colombian pesos)** | **(266.48)** | **(205.46)** |

---

---

| | | |
|:---|:---|:---|
|  | **December 31, <br>2022** | **December 31, <br>2021** |
|  Net loss from discontinued operations | (24115983) | (38265459) |
|  Weighted average shares | 1014349328 | 611675796 |
|  **Basic and diluted loss per share (in Colombian pesos)** | **(23.78)** | **(62.56)** |

---

The Company has outstanding stock options, warrants and convertible notes convertible into equity shares with potentially dilutive effects for a weighted average amount of 2,032,631,816 and 4,564,669, for the years ended December 31, 2022, and 2021, respectively, but which were not included in the calculation as they have anti-dilutive effects.

#### Note 30. Financial instruments and risk management.
The Company's activities expose it to a variety of financial risks: market risk (including currency risk and interest rate risk), credit risk and liquidity risk.

The Company's overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the financial performance of the Company. The Company constantly analyzes the impact of financial risk in order to determine the representative changes that can gradually affect it and thereby mitigate the risks of exchange rates and interest rates.

Management reviews and approves the policies to manage each of the risks.

[**Table of Contents**](#TOC001)

**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 30. Financial instruments and risk management (cont.)

#### Capital management
The objectives of capital management are to safeguard the Company's ability to continue as a going concern, so that it can continue to provide returns for shareholders, as well as to maintain an optimal capital structure to reduce the cost of capital and maximize those returns.

The Company is in the process of turning its operations profitable through organic and inorganic growth and obtaining funds through the issuance of its shares to strategic investors.

#### Financial instruments by category
As of December 31, 2022, and 2021, financial assets and liabilities consist of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br>2022** | **December 31, <br>2021** |
|  Cash and cash equivalents | 4418060 | 8670873 |
|  **Financial assets measured at amortized cost** |  |  |
|  Trade and other accounts receivable | 3937148 | 6215620 |
|  Other financial assets | 619331 | 335788 |
|  **Total financial assets** | **8974539** | **15222281** |
|  **Financial liabilities measured at amortized cost** |  |  |
|  Accounts payable to related parties | 32169787 | 5609999 |
|  Suppliers and other payables | 27902823 | 50436129 |
|  Interest-bearing loans and borrowings | 109518683 | 7946568 |
|  Lease liabilities | 9867647 | 20044938 |
|  **Total financial liabilities** | **179458940** | **84037634** |
|  **Net financial liability exposure** | **(170484401)** | **(68815353)** |

---

#### Fair value of financial assets and liabilities measured at amortized cost
The amount of cash and cash equivalents, trade, and other accounts receivable and suppliers and other payables, approximate their fair value due to their short-term maturity. The net carrying amount of these accounts represents the expected cash flows to be received as of December 31, 2022, and 2021.

In addition, the estimated carrying amount and fair value of the liabilities measured at amortized costs are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, <br>2022** | **December 31, <br>2022** | **December 31, <br>2021** | **December 31, <br>2021** |
|  | **Carrying <br>amount** | **Fair <br>value** | **Carrying <br>amount** | **Fair <br>value** |
|  Interest-bearing loans and borrowings | 109,518,683 | 103,599,280 | 7,946,568 | 7,905,855 |

---

The estimated fair value of the interest-bearing loans and borrowings as of December 31, 2022, and 2021, was determined based on the discounted cash flows, using a Colombian credit spread, which reflects a similar credit risk in Colombian pesos. The fair value measurement of the interest-bearing loans and borrowings is considered within the Level 2 of the fair value hierarchy.

Long-term fixed-rate and variable-rate interest-bearing loans and borrowings are evaluated by the Company based on parameters such as interest rates, specific country risk factors, and the risk characteristics of the financed project.

As of December 31, 2022, and 2021, there were no transfers between the levels of the fair value hierarchy.

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**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 30. Financial instruments and risk management. (cont.)

#### Note 30.1. Market risks
Financial instruments affected by market risk include cash, suppliers, interest-bearing loans and borrowings and credit cards.

The sensitivity analyses in the following sections relate to the position as of December 31 in 2022, and have been prepared based on the assumption that, the sensitivity of the relevant statement of profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held as of December 31, 2022.

a. Exchange rate risk

The Company has operations in Colombia, Brazil, and Mexico (until June 2022) and is exposed to exchange rate changes, mainly derived from transactions and balances conducted and held in U.S. dollars by the Parent Company and its subsidiaries. Additionally, during 2022 the Company acquired two interest-bearing loans payable in U.S. dollars, which expose it to exchange rate fluctuations. As of December 31, 2022, the Company has not contracted any derivative instruments to hedge that risk, increasing the loss on exchange differences significantly compared with 2021 due to the devaluation of the Colombian peso compared to the U.S. dollar.

Changes in the exchange rates between the functional currency of the Company and the U.S. dollar represents a significant factor for the Parent Company and its subsidiaries due to the effect that such currencies have on its financial results and because the Company has no control in their determination.

The Company maintains the following financial assets and liabilities denominated in U.S. dollars in relation to the functional currency of the Parent Company and its respective subsidiaries, translated to thousands of Colombian pesos at the closing exchange rate as of December 31, 2022, and 2021:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2021** |
|  | **USD** | **USD** |
|  Financial assets | 134478 | 519638 |
|  Financial liabilities | 28957790 | 56734 |
|  **Foreign exchange financial position, net** | **(28823312)** | **462904** |

---

The exchange rate used to translate financial positions in U.S. dollars to Colombian pesos is as of December 31, 2022 — $4,810.20, as of December 31, 2021 — $3,981.16. Based on the financial positions in foreign currency maintained by the Company, a hypothetical variation of 10% in the COP/USD exchange rate and keeping all other variables constant, would result in a pre-tax effect of $13,864,590, and $184,289 in the consolidated statement of income and stockholders' equity, as of December 31, 2022, and 2021, respectively.

b. Interest risk rate

The Company is exposed to interest rate risk mainly due to interest-bearing loans and borrowings held at variable rates. On the other hand, fixed-interest loans expose the Company to interest rate risk at fair value, which reflects that it might be paying interests at rates significantly different from those of an observable market. As of December 31, 2022, 5% of the Company's financings are denominated at a fixed rate and 95% at a variable rate.

As of December 31, 2022, and 2021, if interest rates on variable rate loans are increased or decreased by 100 basis points in relation to the rate in effect, the financial expense in profit and loss and to stockholders' equity of the Company would change by $1,092,786 and $74,123, respectively.

The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable market environment.

[**Table of Contents**](#TOC001)

**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 30. Financial instruments and risk management (cont.)

#### Note 30.2. Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Company.

Credit risk is generated from cash and cash equivalents, as well as credit exposure to trade and other accounts receivable. The Company manages and analyzes the credit risk for each of its accounts receivable before setting the terms and conditions of payment and evaluates the creditworthiness of customers, considering their financial position, past experience and other factors. The maximum exposure to credit risk is given by the balances of these items, as presented in the consolidated statement of financial position (see note 7).

As of December 31, 2022, and 2021, the Company did not have any customer which represented more than 10% of outstanding receivables.

An impairment analysis is performed at each reporting date using a provision matrix to measure expected credit losses. The provision rates are based on days past due for customers segments with similar loss patterns, which are receivables from delivery service representatives of the Company and receivables from clients. The calculation reflects the probability-weighted outcome, the time value of money and reasonable and supportable information that is available at the reporting date about past events, current conditions, and forecasts of future economic conditions. Generally, trade receivables are written-off if past due for more than seven months and are not subject to enforcement activity. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 30.3.

During the years ended December 31, 2022, and 2021, the credit limits were not exceeded and there have been no changes in estimation techniques or assumptions. Information about the credit risk exposure on the Company's trade and other receivables is described using a provision matrix in Note 7.3.

#### Note 30.3. Liquidity risk
Cash flows projections are prepared at each operating entity of the Company and, subsequently, the finance area consolidates this information. The Company's finance area continuously monitors the cash flow projections and liquidity requirements of the Company ensuring there is a proper level of cash and equivalents to meet operational needs. The Company monitors regularly and makes its decisions considering not violating the limits or covenants established in its debt contracts. The projections consider the Company's financing plans, compliance with covenants, compliance with internal minimum liquidity ratios and legal or regulatory requirements.

The following table details the Company's financial liabilities grouped according to their maturity, from the reporting date to the contractual maturity date. The amounts disclosed are contractual undiscounted cash flows; therefore, they differ from the amounts included in the consolidated statements of financial position.

---

| | | | |
|:---|:---|:---|:---|
|  | **Less than <br>1 year** | **Between 1 and <br>5 years** | **Over <br>5 years** |
|  **As of December 31, 2022** |  |  |  |
|  Interest-bearing loans and borrowings | 9169123 | 66755548 | 33594012 |
|  Suppliers and other payables | 29285855 |  |  |
|  Accounts payable to related parties | 28258254 | 3911533 |  |
|  Lease liabilities | 4230219 | 5637428 |  |
|  Un-accrued future interest | 14881656 | 42498693 | 4260011 |

---

[**Table of Contents**](#TOC001)

**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 30. Financial instruments and risk management (cont.)

---

| | | | |
|:---|:---|:---|:---|
|  | **Less than <br>1 year** | **Between 1 and <br>5 years** | **Over <br>5 years** |
|  **As of December 31, 2021** |  |  |  |
|  Interest-bearing loans and borrowings | 6667981 | 1278587 |  |
|  Suppliers and other payables | 51542661 |  |  |
|  Accounts payable to related parties | 982875 | 4627124 |  |
|  Lease liabilities | 5766400 | 14278538 |  |
|  Un-accrued future interest | 639357 | 77904 |  |

---

The Company expects to meet its obligations with the cash flows generated by operations and also requires continued funding from its investors.

As of December 31, 2022, and 2021, the Company maintains available credit lines for the amount of $45,194 and $9,976,479 respectively.

#### Fair value hierarchy
Fair value is defined as the price that would be received to sell an asset or the price paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Fair value measurements are made using a fair value hierarchy that reflects the importance of the inputs used in determining the measurements.

The three distinct levels used are presented below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1: Quoted prices for identical instruments in active markets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2: Other valuations including quoted prices for similar instruments in active markets that are directly or indirectly observable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3: Valuations made through techniques in which one or more of the significant data are not observable.

As of December 31, 2022, and 2021, the Company does not maintain financial instruments measured at fair value.

#### Note 31. Contingent assets and liabilities

#### Note 31.1. Contingent assets
As of December 31, 2022, and 2021, the Company does not have significant contingent assets.

#### Note 31.2. Contingent liabilities
The following are the contingent liabilities as of December 31, 2022:

During 2020, the Company was sued for non-compliance in the presentation of alcoholic beverage advertising on its website. As of December 31, 2022, and 2021, the resolution of the lawsuit is unfavorable to the Company; however, it is not possible to estimate the amount to be paid in the event that the lawsuit is lost, although management and its legal counsel believe that the maximum potential exposure is not material.

[**Table of Contents**](#TOC001)

**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 32. Information about segments
Information by segments is presented consistently with internal reports provided to the President of the Company and the Board of Directors, the highest authorities for operating decision making, allocation of resources and evaluation of the performance of the operating segments.

The Company discloses segment information accordance with IFRS 8, Operating segments; these segments are defined as a component of an entity for which there is separate financial information that is regularly evaluated by senior management.

It was proposed by the Board of Directors and approved by Shareholders Meeting that senior management must evaluate the business from a geographic perspective. The geographies monitored by them are defined as the operating segments of the Company, which include Colombia and Brazil (Mexico has been disposed of in 2022 and is presented as a discontinued operation). Segment assets and liabilities are not reported internally for decision-making purposes and therefore, are not disclosed in this note.

The Company evaluates the performance of each of the operating segments based on operating income (loss), considering that such indicator represents a good measure to evaluate the operating performance and the ability to satisfy principal and interest obligations with respect to the Company's debt, as well as the ability to fund capital investments and working capital requirements.

The accounting policies of the reported segments are the same accounting policies of the Company described in Note 4. There are currently no inter-segment revenues to be considered on consolidation.

The condensed financial information of the operating segments to be reported is shown below:

---

| | | | |
|:---|:---|:---|:---|
|  **December 31, 2022** | **Colombia** | **Brazil** | **Total** |
|  **Total consolidated revenue** | **111706104** | **22200657** | **133906761** |
|  Cost of sales | (102416145) | (24330019) | (126746164) |
|  Selling expenses | (56031276) | (19193683) | (75224959) |
|  Administrative expenses | (56849408) | (13182200) | (70031608) |
|  Technology expenses | (6579776) |  | (6579776) |
|  Other operating income | 2167920 |  | 2167920 |
|  Other operating expenses | (12777120) | (366845) | (13143965) |
|  **Total consolidated cost and operating expenses** | **(232485805)** | **(57072747)** | **(289558552)** |
|  **Operating loss** | **(120779701)** | **(34872090)** | **(155651791)** |
|  Depreciation and amortization | (7657715) | (1094874) | (8752589) |
|  Impairment of non-financial assets | (7198284) |  | (7198284) |
|  **Non-current assets**<sup>(1)</sup> | **18868899** | **4452792** | **23321691** |

---

[**Table of Contents**](#TOC001)

**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 32. Information about segments (cont.)

---

| | | | |
|:---|:---|:---|:---|
|  **December 31, 2021** | **Colombia** | **Brazil** | **Total** |
|  **Total consolidated revenue** | **204358789** | **1242161** | **205600950** |
|  Cost of sales | (188732819) | (5157313) | (193890132) |
|  Selling expenses | (76080105) | (3695453) | (79775558) |
|  Administrative expenses | (36222600) | (5532790) | (41755390) |
|  Technology expenses | (4594339) |  | (4594339) |
|  Other operating income | 1303585 |  | 1303585 |
|  Other operating expenses | (5349388) | (13198) | (5362586) |
|  **Total consolidated cost and operating expenses** | **(309675666)** | **(14398754)** | **(324074420)** |
|  **Operating loss** | **(105316877)** | **(13156593)** | **(118473470)** |
|  Depreciation and amortization | (8399374) | (361235) | (8760609) |
|  Impairment of non-financial assets | (747078) |  | (747078) |
|  **Non-current assets**<sup>(1)</sup> | **34895068** | **2387885** | **37282953** |

---

____________

(1) This balance does not include the non-current trade and other accounts receivable.

Capital expenditures, finance costs, finance income and losses on financial assets are not allocated to individual segments as the underlying instruments are managed on a group basis.

#### Note 33. Discontinued operation
In June 2022, the Company's Board of Directors decided to close its operations in Mexico indefinitely, effective on June 8 and to focus the resources and efforts on strengthening the Company's position in Colombia and the expansion in Brazil.

The Company determined that the disposal group should be classified as abandoned assets, and they fulfilled the requirements established in IFRS 5 — Non-current Assets Held for Sale and Discontinued Operations to classify them as a discontinued operation, since they represent a major line of business and geographical area of operations. These consolidated financial statements present Mexico as a discontinued operation for comparative purposes as required by IFRS 5.

The information related to the consolidated income statement of discontinued operations for the years ended December 31, 2022, and 2021 is presented below:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br>2022** | **December 31, <br>2021** |
|  **Discontinuing operations** |  |  |
|  Net revenue | 7876017 | 14227149 |
|  Cost of sales | (9628506) | (21790899) |
|  **Gross profit** | **(1752489)** | **(7563750)** |
|  Selling expenses | (8885456) | (16222612) |
|  Administrative expenses | (12442702) | (12771574) |
|  Technology expenses | (35017) | (1783) |
|  Other operating income | 302018 | 505573 |
|  Other operating expenses | (354674) |  |
|  **Operating loss** | **(23168320)** | **(36054146)** |
|  Finance costs | (29924) | (543203) |
|  Net loss on exchange differences | (917739) | (1668110) |
|  **Net financial result** | **(947663)** | **(2211313)** |
|  **Net loss from discontinuing operations** | **(24115983)** | **(38265459)** |
|  **Loss per share(\*)** |  |  |
|  Loss per share in discontinued operations | (23.78) | (62.56) |
|  **Basic and diluted loss per share** | **(23.78)** | **(62.56)** |

---

[**Table of Contents**](#TOC001)

**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 33. Discontinued operation (cont.)
There is no income tax expense generated by the classification of the discontinued operation since the disposal group are considered assets to be abandoned. In addition, there was no income tax recognized in the discontinued operation in Mexico.

The net cash flows incurred by the discontinued operations are as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br>2022** | **December 31, <br>2021** |
|  Operating activities | 2152272 | 865427 |
|  Investing activities | (575806) | (1141026) |
|  Financing activities |  | (1187290) |
|  **Net cash outflows** | **1576466** | **(1462889)** |

---

#### Note 34. Subsequent events
In preparing the consolidated financial statements, the Company has evaluated the events and transactions for their recognition or disclosure subsequent to December 31, 2022, and until March 23, 2023, (issuance date of the consolidated financial statements), and except for the matters mentioned below, no significant subsequent events have been identified:

#### Portland Private Equity Group — Convertible debt note.
By mutual agreement between the Convertible Debt Note holders and the Company, the anticipated conversion was agreed and executed on February 2, 2023. The number of preferred Series D-1 shares issued in form of payment of the principal and interest accrued until the conversion date is 277,067,428.

#### Portland JXS Limited — Convertible debt notes
Modified on January 20, 2023, by adjusting the originally referenced par value. Additionally, the conversion option is included before the declaration of effectiveness of the IPO.

#### Other Convertible Debt Notes
The Company also issued the following convertible debt notes as described below:

---

| | | |
|:---|:---|:---|
|  **Shareholder<sup>(1)</sup>** | **Date** | **USD** |
|  Portland JSX Limited | January 12, 2023, amended on January 20, 2023  | 500000 |
|  Portland JSX Limited | January 20, 2023  | 780000 |
|  Fuel Venture Capital Flagship Fund II, LP | January 20, 2023  | 500000 |
|  Pablo González | January 20, 2023  | 19000 |
|  Portland Private Equity Group | January 20, 2023  | 220000 |
|  MGM Innova Cap Management LLC | January 20, 2023  | 50000 |
|  Portland Private Equity Group<sup>(2)</sup> | March 3, 2023  | 1500000 |

---

____________

(1) The conversion of these notes will occur upon an initial public offering of the Company and contains a 35% discount on the share price upon conversion and are subject to a lock-up period of 9 months.

(2) This note has a termination date at the earliest of (i) the day after the date of effectiveness of the Registration Statement, or (ii) the one-year anniversary of the execution of the note. If the Registration Statement is declared effective, the Note shall be paid in ordinary shares in an amount calculated with an original issue discount of 20% and with a discount of 35%. If payable upon the one-year anniversary, it will be paid in cash, including its principal and accrued interests of 18% effective annual rate.

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**Merqueo Holdings and Subsidiaries<br>Notes to the consolidated financial statements<br>For the years ended December 31, 2022, and 2021<br>Presented in thousands of Colombian pesos ($), except otherwise specified.**

#### Note 34. Subsequent events (cont.)

#### Bridge financing to Initial Public Offering
On February 7, 2023, by resolution of the Company's Board of Directors, a Bridge to IPO financing of up to US$8,000,000 was approved. Said financing is to be executed by means of issuance of notes convertible into ordinary shares at IPO. On February 17, 2023, by resolution of the general meeting of Merqueo Holdings' shareholders it was approved to authorize for issue a certain number of ordinary shares to account for the eventual conversion of the Bridge to IPO notes, along with Portland JXS — Convertible debt notes, and the Other Convertible Debt Notes.

As part of this bridge financing, the Company obtained a waiver from IDB to allow it to increase its borrowing limits in line with the Bridge to IPO.

#### Lender Modification BLAO Holdings
On February 23, 2023 BLAO Holdings has assigned all of its rights and interests in the Loan Agreement, the Security Documents, the other Financing Documents and any other documents and instruments delivered pursuant thereto (the "Assignment") to BLUE LIKE AN ORANGE SUSTAINABLE CAPITAL FUND SICAV-SIF SCS, a Luxembourg limited partnership (société en commandite simple) qualifying as an investment company with variable capital — specialized investment fund (société d'investissement à capital variable — fonds d'investissement spécialisé) established under the provisions of the law of February 13, 2007, on specialized investment funds, as amended, registered with the Luxembourg Register of Trade and Companies under company number B 214.724 and having its registered office at 5, allée Scheffer, L-2520 Luxembourg, Grand Duchy of Luxembourg (the "Assignee").

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![](tcover_004.jpg)

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#### Ordinary Shares

#### ______________

#### Prospectus

#### ______________

#### , 2023

#### Aegis Capital Corp.

------

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#### PART II

#### INFORMATION NOT REQUIRED IN PROSPECTUS

#### Item 6. Indemnification of Directors, Officers and Employees.
The Underwriting Agreement, the form of which to be filed as Exhibit 1.1 to this registration statement, will provide for indemnification of us and our officers and directors.

Insofar as indemnification for liabilities arising under the Securities Act of 1933, as amended, may be permitted to directors, officers or persons controlling us pursuant to the foregoing provisions, we have been informed that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.

#### Item 7. Recent Sales of Unregistered Securities.
During the past three years, we have issued the following securities. We believe that each of the following issuances was exempt from registration under the Securities Act pursuant to Section 4(2) of the Securities Act regarding transactions not involving a public offering or in reliance on Regulation S under the Securities Act regarding sales by an issuer in offshore transactions. No underwriters were involved in these issuances of securities.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  **Securities** | **Purchaser** | **Date of <br>Issuance** | **Number of <br>Securities** | **Consideration (COP$)** |
|  Common Class B Shares | Robert Lesko <br> Andrew Nordstrom<br> Ventura Tech S.A.S.<br> Palm Drive Capital<br> FCP Plentia Inversiones Compartimento III Raiz | May 31, <br>2019 | 5346163 | 1766600000 |
|  Preferred – Series A Shares | Portland Caribbean Fund II, L.P.<br> Portland Caribbean Fund II (BARBADOS), LP.<br> Portland Fund II Co-Invest Partnership | January 29, 2019 | 103226521 | 31710000000 |
|  Preferred – Series A Shares | Endeavor Catalyst II LP <br> Endeavor Catalyst II-A LP | February 12, 2019 | 11354917 | &nbsp;&nbsp;&nbsp; 3488099921 |
|  Preferred – Series B Shares | Portland Caribbean Fund II, L.P.<br> Portland Caribbean Fund II (BARBADOS), LP.<br> Portland Fund II Co-Invest Partnership | October 10, 2019 | 74577784 | 34545600000 |

---

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---

| | | | | |
|:---|:---|:---|:---|:---|
|  **Securities** | **Purchaser** | **Date of <br>Issuance** | **Number of <br>Securities** | **Consideration (COP$)** |
|  Additional Preferred – Series B Shares | Celtic House SPV (Merqueo) LP | September 4, 2020 | 15018281 | 11935310777 |
|  Preferred – Series C 1 Shares | Inter-American Investment Corporation <br> Inter-American Development Bank, acting in its separate capacity as administrator of the Clean Technology Fund II <br> CIBanco, S.A., Institución de Banca Múltiple, acting as trustee under the irrevocable management trust CIB/3645 <br> Copenhagen VC Fund I K/S | June 18, <br>2021 | 68965638 | 54824847378 |
|  Preferred – Series C 2 Shares | MGM Sustainable Energy Fund II LP <br> MGM Sustainable Energy Ontario Parallel Fund II LP <br> MGM Sustainable Energy Fund (Luxemburg) SCSp | &nbsp;&nbsp;&nbsp; June 18, 2021 | &nbsp;&nbsp;&nbsp; 58448579 | &nbsp;&nbsp;&nbsp; 44152999060 |
|  Preferred – Series C 3 Shares | José Guillermo Calderón <br> Miguel Mc Allister <br> Pablo González <br> Inversiones Son Son S.A.S.<br> Portland Caribbean Fund II, LP.<br> Portland Caribbean Fund II (BARBADOS), LP.<br> Portland Fund II Co-Invest Partnership<br> Robert Lesko <br> Andrew Nordstrom <br> Ventura Tech S.A.S.<br> Palm Drive Capital <br> FCP Plentia Inversiones Compartimento III Raiz <br> Celtic House SPV (Merqueo) LP | June 18, <br>2021 | 8601157 | 4103823205 |
|  Preferred – Series C 1 Shares | IDCV Fuel Merqueo K/S <br> Fuel Venture Capital Fund I, LP <br> Fuel Venture Capital Fund Co-Invest Series, LLC Series K-1 | October 15, 2021 | 28149240 | 22531740000 |
|  Preferred – Series C 1 Shares | IDCV Fuel Merqueo K/S <br> Fuel Venture Capital Fund I, LP <br> Fuel Venture Capital Fund Co-Invest Series, LLC Series K-1 | November 15, 2021 | 14074620 | 11665590000 |

---

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---

| | | | | |
|:---|:---|:---|:---|:---|
|  **Securities** | **Purchaser** | **Date of <br>Issuance** | **Number of <br>Securities** | **Consideration (COP$)** |
|  Preferred – Series C 1 Shares | IDCV Fuel Merqueo K/S <br> Fuel Venture Capital Fund I, LP <br> Fuel Venture Capital Fund Co-Invest Series, LLC Series K-1 | December 15, 2021 | 14074620 | 11809230000 |
|  Preferred – Series C 1 Shares | IDCV Fuel Merqueo K/S <br> Fuel Venture Capital Fund I, LP <br> Fuel Venture Capital Fund Co-Invest Series, LLC Series K-1 | January 17, 2022 | 14074620 | 11980950000 |
|  Preferred – Series C 1 Shares | IDCV Fuel Merqueo K/S<br> Fuel Venture Capital Fund I, LP<br> Fuel Venture Capital Fund Co-Invest Series, LLC Series K-1 | February 15, 2022 | 32840780 | 27572790000 |
|  Preferred – Series C 1 Shares | IDCV Fuel Merqueo K/S<br> Fuel Venture Capital Fund I, LP<br> Fuel Venture Capital Fund Co-Invest Series, LLC Series K-1<br> Portland Caribbean Fund II, L.P. <br> Portland Caribbean Fund II (BARBADOS), LP.<br> Portland Fund II Co-Invest Partnership | March 15, 2022 | 105559650 | 54162112500 |
|  Preferred – Series D 1 Shares and Warrants convertible into Series D 2 Shares on a one-to-one basis | FCP Plentia Inversiones Compartimento III Raiz <br> Portland Caribbean Fund II, L.P. <br> Portland Caribbean Fund II (BARBADOS), LP.<br> Portland Fund II Co-Invest Partnership <br> CIBanco, S.A., Institución de Banca Múltiple, acting as trustee under the irrevocable management trust CIB/3645 <br> Fuel Venture Capital Fund I,LP <br> Series K-2, LLC an Individual Protected Series of Fuel Venture Capital Fund Co-Invest Series, LLC a Series LLC <br> Celtic House SPV II (Merqueo) LP <br> MGM Energy Efficiency Colombia S.A.S <br> Razor Knuru Stockgro LLC <br> Explorer Partner Investment Holdings, LLC <br> Abdulaziz Albassam | September 15, 2022 | 2631174012 | 51235414572 |

---

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---

| | | | | |
|:---|:---|:---|:---|:---|
|  **Securities** | **Purchaser** | **Date of <br>Issuance** | **Number of <br>Securities** | **Consideration (COP$)** |
|  Notes Convertible into Ordinary Shares | Portland JSX Limited<br> Portland Caribbean Fund II, L.P. <br> Portland Caribbean Fund II (BARBADOS), LP.<br> Portland Fund II Co-Invest Partnership<br> Fuel Venture Capital Flagship Fund II, LP<br> Pablo Gonzalez<br> MGM Innova Cap Management LLC | At IPO | To be determined according to IPO's public price per share | 22416688998 |

---

#### Item 8. Exhibits and Financial Statement Schedules.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Exhibits

The exhibits of the registration statement are listed in the Exhibit Index to this registration statement and are incorporated herein by reference.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Financial Statement Schedules

Schedules have been omitted because the information required to be set forth therein is not applicable or is shown in the financial statements or consolidated financial statements or the notes thereto.

#### Item 9. Undertakings.
Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.

The undersigned registrant hereby undertakes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) That, for the purpose of determining any liability under the Securities Act of 1933, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To include any prospectus required by section 10(a)(3) of the Securities Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation

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from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the SEC pursuant to Rule 424(b) (§230.424(b) of this chapter) if, in the aggregate, the changes in volume and price represent no more than 20% change in the maximum aggregate offering price set forth in the "Calculation of Registration Fee" table in the effective registration statement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) To file a post-effective amendment to the registration statement to include any financial statements required by "8.A. of Form 20-F (17 CFR 249.220f)" at the start of any delayed offering or throughout a continuous offering. Financial statements and information otherwise required by Section 10(a)(3) of the Securities Act need not be furnished, provided that the registrant includes in the prospectus, by means of a post-effective amendment, financial statements required pursuant to this paragraph (a)(4) and other information necessary to ensure that all other information in the prospectus is at least as current as the date of those financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) That for purposes of determining any liability under the Securities Act of 1933, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the Registrant pursuant to Rule 424(b)(1) or (4), or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) For the purpose of determining any liability under the Securities Act of 1933, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

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#### SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, as amended, the registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form F-1 and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Bogotá, on March 23, 2023.

---

| | |
|:---|:---|
|  **MERQUEO HOLDINGS** | **MERQUEO HOLDINGS** |
|  By: | /s/ Felipe Ossa Rodriguez |
|  | Name: Felipe Ossa Rodriguez |
|  | Title: Chief Executive Officer and<br>Director |

---

Pursuant to the requirements of the Securities Act of 1933, as amended, this Registration Statement has been signed by the following persons in the capacities set forth below on March 23, 2023.

---

| | |
|:---|:---|
|  **Signature** | **Title** |
|  /s/ Felipe Ossa Rodriguez | Chief Executive Officer and Director |
|  Felipe Ossa Rodriguez |  |
|  \* | Chief Financial Officer |
|  Jairo Medina Perez |  |
|  \* | Director |
|  Douglas Roy Hewson |  |
|  \* | Director |
|  Jeffrey Scott Ransdell |  |
|  \* | Director |
|  Maria Patricia Saenz |  |
|  \* | Director |
|  Maria Pia Iannariello |  |
|  \* | Director |
|  My Vu Thuy Vo |  |
|  \* | Director |
|  Patrick Müller Sarmiento |  |
|  \* | Director |
|  Pedro Jose Molina |  |

---

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#### SIGNATURE OF AUTHORIZED REPRESENTATIVE IN THE UNITED STATES
Pursuant to the requirements of the Securities Act of 1933, the Registrant's duly authorized representative has signed this registration statement on Form F-1 in New York, on March 23, 2023.

    <u> Cogency Global Inc., </u> <br>     <u> Authorized Representative </u>

---

| | |
|:---|:---|
|  By: | /s/ Colleen A. De Vries  |
|  | Name: Colleen A. De Vries |
|  | Title: Senior Vice President on behalf of Cogency Global Inc. |

---

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#### EXHIBIT INDEX
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Exhibits.* The following exhibits are included herein or incorporated herein by reference:

The following documents are filed as part of this registration statement:

---

| | |
|:---|:---|
|  **Exhibit No.** | **Description of Exhibit** |
| 1.1 | [Form of Underwriting Agreement](ff12023a1ex1-1_merqueohold.htm) |
|  3.1\*\* | [Amended and Restated Memorandum of Association and Amended and Restated Articles of Association](http://www.sec.gov/Archives/edgar/data/1947756/000121390022082960/ff12022ex3-1_merqueohold.htm) |
|  3.2\* | Second Amended and Restated Memorandum of Association and Amended and Restated Articles of Association, to be in effect upon this Registration Statement being declared effective by the SEC |
|  4.1\*\* | [Form of Shareholder's Agreement among the Registrant and other parties thereto](http://www.sec.gov/Archives/edgar/data/1947756/000121390022082960/ff12022ex4-1_merqueohold.htm) |
| 4.2 | [Form of Underwriter's Warrant](ff12023a1ex4-2_merqueohold.htm) |
|  5.1\* | Opinion of Conyers, Dill and Pearman LLP regarding the validity of the ordinary shares being registered |
|  10.1† | [Loan Agreement, dated April 26, 2022, between Merqueo S.A.S. and Blue like an-Orange Sustainable Capital — Latin American Holdings II S.A.R.L.](ff12023a1ex10-1_merqueohold.htm) |
|  10.2† | [Loan Agreement, dated April 27, 2022, between Merqueo S.A.S. and Inter-American Investment Corporation.](ff12023a1ex10-2_merqueohold.htm) |
|  10.3\*\* | [Merqueo Employee Stock Option Plan](http://www.sec.gov/Archives/edgar/data/1947756/000121390022082960/ff12022ex10-3_merqueohold.htm) |
|  10.4\*\* | [Form of Stock Option Agreement](http://www.sec.gov/Archives/edgar/data/1947756/000121390022082960/ff12022ex10-4_merqueohold.htm) |
|  21.1\*\* | [List of significant subsidiaries of the Registrant](http://www.sec.gov/Archives/edgar/data/1947756/000121390022082960/ff12022ex21-1_merqueohold.htm) |
| 23.1 | [Consent of Ernst & Young S.A.S., independent registered public accounting firm](ff12023a1ex23-1_merqueohold.htm) |
|  23.2\* | Consent of Conyers, Dill and Pearman LLP (included in Exhibit 5.1) |
|  24.1\*\* | [Powers of Attorney (included on signature page)](http://www.sec.gov/Archives/edgar/data/1947756/000121390022082960/ff12022_merqueohold.htm#T9009) |
|  107\*\* | [Filing Fee Table](http://www.sec.gov/Archives/edgar/data/1947756/000121390022082960/ff12022ex-fee_merqueohold.htm) |

---

____________

\* To be filed by amendment.

\*\* Previously filed.

† Certain confidential information contained in this exhibit has been redacted because it is both (i) not material and (ii) is the type that the registrant treats as private or confidential. The Company agrees to furnish on a supplemental basis an unredacted copy of the exhibit to the Securities and Exchange Commission upon request.

## Exhibit 1.1

**Exhibit 1.1**

**Underwriting Agreement**

[●], 2023

Aegis Capital Corp.

1345 Avenue of the Americas, 27th Floor

New York, NY 10105

Ladies and Gentlemen:

MERQUEO HOLDINGS, a Cayman Islands exempted company (the ***"Company"***), agrees, subject to the terms and conditions in this agreement (this ***"Agreement"***), to issue and sell to Aegis Capital Corp. (the ***"Underwriter"***) an aggregate of [●] ordinary shares (the ***"Firm Shares"***), par value $[●] per share, of the Company (the ***"Ordinary Shares"***). At the option of the Underwriter, the Company agrees, subject to the terms and conditions herein, to issue and sell up to an aggregate of [●] additional Ordinary Shares representing fifteen percent (15.0%) of the Firm Shares sold in the offering (the ***"Option Shares"***). The Firm Shares and the Option Shares are herein referred to collectively as the ***"Shares"***. The number of Shares to be purchased by the Underwriter is set forth opposite its name in Schedule I hereto.

**Definitions**

 ****

***"Affiliate"*** has the meaning set forth in Rule 405 under the Securities Act.

 ****

***"Applicable Time"*** means 6:45 p.m. Eastern Time on the date hereof.

 ****

***"Bona Fide Electronic Road Show"*** means a "bona fide electronic road show" (as defined in Rule 433(h)(5) under the Securities Act) that the Company has made available without restriction by "graphic means" (as defined in Rule 405 under the Securities Act) to any person.

 ****

***"Business Day"*** means a day on which the Nasdaq is open for trading and on which banks in New York are open for business and not permitted by law or executive order to be closed.

 ****

***"Commission"*** means the United States Securities and Exchange Commission.

"***Emerging Growth Company***" means an "emerging growth company" (as defined in Section 2(a) of the Securities Act).

 ****

***"Exchange Act"*** means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 ****

***"Final Prospectus"*** means the prospectus in the form first filed with the Commission pursuant to and within the time limits described in Rule 424(b) under the Securities Act.

 ****

***"Free Writing Prospectus"*** has the meaning set forth in Rule 405 under the Securities Act.

 ****

***"Investment Company Act"*** means the Investment Company Act of 1940, as amended, and the rules and regulations promulgated thereunder.

 ****

***"Issuer Free Writing Prospectus"*** means an "issuer free writing prospectus" (as defined in Rule 433(h)(1) under the Securities Act).

 ****

***"Preliminary Prospectus"*** means any preliminary prospectus included in the Registration Statement prior to the time at which the Commission declared the Registration Statement effective.

 ****

***"Pricing Disclosure Package"*** means the Pricing Prospectus collectively with the documents and pricing information set forth in Schedule II hereto.

 ****

***"Pricing Prospectus"*** means the Preliminary Prospectus included in the Registration Statement at the time at which the Commission declared the Registration Statement effective.

 ****

***"Prospectus Delivery Period"*** means such period of time after the first date of the public offering of the Shares as in the opinion of counsel for the Underwriter a prospectus relating to the Shares is required by law to be delivered (or required to be delivered but for Rule 172 under the Securities Act) in connection with sales of the Shares by the Underwriter or dealer.

 ****

***"Registration Statement"*** means (a) the registration statement on Form F-1 (File No. 333-269027), including a prospectus, registering the offer and sale of the Shares under the Securities Act as amended at the time the Commission declared it effective, including each of the exhibits, financial statements and schedules thereto, (b) any Rule 430A Information, and (c) any Rule 462(b) Registration Statement.

 ****

***"Rule 430A Information"*** means the information deemed, pursuant to Rule 430A under the Securities Act, to be part of the Registration Statement at the time the Commission declared the Registration Statement effective.

 ****

***"Rule 462(b) Registration Statement"*** means an abbreviated registration statement to register the offer and sale of additional Ordinary Shares pursuant to Rule 462(b) under the Securities Act.

 ****

***"Sarbanes-Oxley Act"*** means the Sarbanes-Oxley Act of 2002, as amended, and the rules and regulations promulgated thereunder.

 ****

***"Securities Act"*** means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 ****

***"Testing-the-Waters Communication"*** means any oral or Written Communication with potential investors undertaken in reliance on Section 5(d) of under the Securities Act.

 ****

***"Written Communication"*** has the meaning set forth in Rule 405 under the Securities Act.

 ****

***"Written Testing-the-Waters Communications"*** means any Testing-the-Waters Communication that is a Written Communication.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Representations and Warranties of the Company</u>.

The Company hereby represents and warrants to, and agrees with, the Underwriter that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Registration Statement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company has prepared and filed the Registration Statement with the Commission under the Securities Act. The Commission has declared the Registration Statement effective under the Securities Act and the Company has not as of the date of this Agreement filed a post-effective amendment to the Registration Statement. The Commission has not issued any order suspending the effectiveness of the Registration Statement or any order preventing or suspending the use of the Registration Statement, the Final Prospectus, any Preliminary Prospectus, any Issuer Free Writing Prospectus or any Testing-the-Waters Communication, and no proceedings for such purpose or pursuant to Section 8A of the Securities Act have been initiated, are pending before or, to the Company's knowledge, threatened by the Commission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Registration Statement, at the time it became effective, did not contain, and any post-effective amendment thereto, as of the effective date of such amendment, will not contain, any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading; <u>provided</u> that the Company makes no representation or warranty with respect to any statements or omissions made in reliance upon and in conformity with information relating to the Underwriter furnished to the Company in writing by the Underwriter expressly for use in the Registration Statement (including any post-effective amendment thereto), the Pricing Disclosure Package, the Final Prospectus (including any amendments or supplements thereto), any Preliminary Prospectus, any Issuer Free Writing Prospectus or any Testing-the-Waters Communication, it being understood and agreed that the only such information furnished by the Underwriter consists of the information described in Section 8(c) hereof (collectively, the ***"Underwriter Information"***).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Each of the Registration Statement and any post-effective amendment thereto, at the time it became effective and at the date hereof, complied and will comply in all material respects with the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Pricing Disclosure Package</u>. The Pricing Disclosure Package, as of the Applicable Time, did not, and as of the Closing Date (as defined below) and as of any Additional Closing Date (as defined below), as the case may be, will not, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; <u>provided</u> that the Company makes no representation or warranty with respect to any statements or omissions made in reliance upon and in conformity with the Underwriter Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Final Prospectus</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each of the Final Prospectus and any amendments or supplements thereto, as of its date, as of the time it is filed with the Commission pursuant to Rule 424(b) under the Securities Act, as of the Closing Date and as of any Additional Closing Date, as the case may be, will not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; <u>provided</u> that the Company makes no representation or warranty with respect to any statements or omissions made in reliance upon and in conformity with the Underwriter Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Each of the Final Prospectus and any amendments or supplements thereto, at the time it is filed with the Commission pursuant to Rule 424(b) under the Securities Act, as of the Closing Date and as of any Additional Closing Date, as the case may be, will comply in all material respects with the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Preliminary Prospectuses</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each Preliminary Prospectus when considered together with any amendments or supplements thereto, as of the time it was filed with the Commission pursuant to Rule 424(a) under the Securities Act, if any, did not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; <u>provided</u> that the Company makes no representation or warranty with respect to any statements or omissions made in reliance upon and in conformity with the Underwriter Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Each Preliminary Prospectus when considered together with any amendments or supplements thereto, at the time it was filed with the Commission pursuant to Rule 424(a) under the Securities Act, if any, complied in all material respects with the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Issuer Free Writing Prospectuses</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each Issuer Free Writing Prospectus, when considered together with the Preliminary Prospectus accompanying, or delivered prior to the delivery of, such Issuer Free Writing Prospectus, did not, as of the date of such Issuer Free Writing Prospectus, and will not, as of the Closing Date and as of any Additional Closing Date, as the case may be, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; <u>provided</u> that the Company makes no representation or warranty with respect to any statements or omissions made in reliance upon and in conformity with the Underwriter Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Each Issuer Free Writing Prospectus, at the time of filing with the Commission, complied or will comply in all material respects with the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Company has filed, or will file, with the Commission, within the time period specified in Rule 433(d) under the Securities Act, any Free Writing Prospectus it is required to file pursuant to Rule 433(d) under the Securities Act. The Company has made available any Bona Fide Electronic Road Show used by it in compliance with Rule 433(d)(8)(ii) under the Securities Act such that no filing of any "road show" (as defined in Rule 433(h) under the Securities Act) (***"Road Show"***) is required in connection with the offering of the Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Except for the Issuer Free Writing Prospectuses, if any, set forth in Schedule II hereto and electronic road shows, if any, each furnished to the Underwriter before first use, the Company has not used, authorized the use of, referred to or participated in the planning for use of, and will not, without the prior consent of the Underwriter, use, authorize the use of, refer to or participate in the planning for use of, any Free Writing Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Testing-the-Waters Communications</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company has not (x) alone engaged in any Testing-the-Waters Communication other than Testing-the-Waters Communications with the consent of the Underwriter with entities that are qualified institutional buyers within the meaning of Rule 144A under the Act or institutions that are accredited investors within the meaning of Rule 501 under the Act, and (y) authorized anyone other than the Underwriters to engage in Testing-the-Waters Communications.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>No Other Disclosure Materials</u>. Other than the Registration Statement, the Pricing Disclosure Package, and the Final Prospectus, the Company (including its agents other than the Underwriter, as to which no representation or warranty is given) has not, directly or indirectly, distributed, prepared, used, authorized, approved or referred to, and will not distribute, prepare, use, authorize, approve or refer to, any offering material in connection with the offering and sale of the Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Ineligible Issuer</u>. At the time of filing of the registration statement on Form F-1 (File No. 333-269027) registering the offer and sale of the Shares submitted to the Commission on [●], 2023 and any amendment thereto and at the date hereof, the Company was not and is not an "ineligible issuer" (as defined in Rule 405 under the Securities Act).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Emerging Growth Company</u>. From the time of the initial confidential submission of the Registration Statement to the Commission (or, if earlier, the first date on which the Company engaged directly or through any person authorized to act on its behalf in any Testing-the-Waters Communication) through the date hereof, the Company has been and is an Emerging Growth Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Due Authorization</u>. The Company has full right, power and authority to execute and deliver this Agreement and to perform its obligations hereunder; and all action required to be taken for the due and proper authorization, execution and delivery by it of this Agreement and the Underwriter's Warrant, substantially in the form of Exhibit E hereto (the "***Underwriter's Warrant***") and the consummation by it of the transactions contemplated hereby and thereby has been duly and validly taken**.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Underwriting Agreement</u>. This Agreement and the Underwriter's Warrant Agreement have been duly authorized, executed and delivered by the Company and each, assuming the due authorization, execution and delivery by the other parties hereto, constitutes a valid and legally binding agreement of the Company, enforceable in accordance with its terms, except as (i) the enforcement hereof may be limited by bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or other similar laws relating to or affecting the rights and remedies of creditors or by general equitable principles (whether considered in a proceeding at law or in equity) relating to enforceability and (ii) rights to indemnification and contribution hereunder may be limited by applicable law and public policy considerations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>No Material Adverse Change</u>. Except as otherwise disclosed in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus (in each case exclusive of any amendment or supplement thereto), since the date of the most recent financial statements included in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus: (i) there has been no material adverse change, or any development that could result in a material adverse change, in or affecting the condition (financial or otherwise), earnings, business, properties, management, financial position, stockholders' equity, or results of operations, whether or not arising from transactions in the ordinary course of business, of the Company and its subsidiaries, considered as one entity; (ii) there has been no change in the capital stock (other than (A) the issuance of Ordinary Shares upon the exercise or settlement (including any "net" or "cashless" exercises or settlements) or conversion of stock options, restricted share units, warrants, or preferred shares described as outstanding, (B) the grant of options and awards under existing equity incentive plans, or (C) the repurchase of Ordinary Shares by the Company, which were issued pursuant to the early exercise of stock options by option holders and are subject to repurchase by the Company, in each case, as described in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus), or material change in the short-term debt or long-term debt of the Company or any of its subsidiaries, considered as one entity; and (iii) the Company and its subsidiaries, considered as one entity, have not incurred any material liability or obligation, indirect, direct or contingent (whether or not in the ordinary course of business); nor entered into any transaction or agreement (whether or not in the ordinary course of business) that is material to the Company and its subsidiaries, considered as one entity; and (iv) there has been no dividend or distribution of any kind declared, set aside for payment, paid or made by the Company or, except for dividends paid to the Company or other subsidiaries of the Company, any of its subsidiaries on any class of capital stock or repurchase or redemption by the Company or any of its subsidiaries of any class of capital stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Organization and Good Standing of the Company and its Subsidiaries</u>. The Company and each of its subsidiaries have been duly organized and are validly existing and in good standing under the laws of their respective jurisdictions of organization, are duly qualified to do business and are in good standing in each jurisdiction in which their respective ownership or lease of property or the conduct of their respective businesses requires such qualification, and have all power and authority (corporate and other) necessary to own, lease or hold their respective properties and to conduct the businesses in which they are engaged as described in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus, except where the failure to be in good standing, to be so qualified or to have such power or authority could not, individually or in the aggregate, have a material adverse effect on the condition (financial or otherwise), earnings, business, properties, management, financial position, shareholders' equity, or results of operations of the Company and its subsidiaries, considered as one entity, or adversely affect the performance by the Company of its obligations under this Agreement (a ***"Material Adverse Effect"***).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Capitalization</u>. The capitalization of the Company is as set forth in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus under the heading "Capitalization". All of the outstanding shares of capital stock of the Company have been duly authorized and validly issued and are fully paid and non-assessable. The Shares and the Underwriter's Securities have been duly authorized and, when issued and paid for as contemplated herein, will be validly issued, fully paid and non-assessable; the holders thereof are not and will not be subject to personal liability by reason of being such holders; the Shares and the Underwriter's Securities are not and will not be subject to the preemptive rights of any holders of any security of the Company or similar contractual rights granted by the Company; and all corporate action required to be taken for the authorization, issuance and sale of the Shares and the Underwriter's Securities has been duly and validly taken. When paid for and issued in accordance with the Underwriter's Warrant, the underlying shares will be validly issued, fully paid and non-assessable; the holders thereof are not and will not be subject to personal liability by reason of being such holders; the underlying shares are not and will not be subject to the preemptive rights of any holders of any security of the Company or similar contractual rights granted by the Company; and all corporate action required to be taken for the authorization, issuance and sale of the Underwriter's Warrant has been duly and validly taken. None of the outstanding shares of capital stock of the Company were issued in violation of any preemptive rights, rights of first refusal or other similar rights to subscribe for or purchase securities of the Company. Except as disclosed in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus, there are no authorized or outstanding options, warrants, preemptive rights, rights of first refusal or other rights to acquire, or instruments convertible into or exchangeable or exercisable for, any shares of capital stock of, or other equity interest in, the Company or any of its subsidiaries. All of the outstanding shares of capital stock of, or other equity interest in, each of the Company's subsidiaries (i) have been duly authorized and validly issued, (ii) are fully paid and non-assessable and (iii) are owned by the Company, directly or through the Company's subsidiaries, free and clear of any security interest, mortgage, pledge, lien, encumbrance, charge, claim or restriction on voting or transfer (collectively, ***"Liens"***).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Stock Plans</u>. With respect to the stock options (the ***"Stock Options"***) granted pursuant to the stock-based compensation plans of the Company and its subsidiaries (the ***"Company Stock Plans"***), (i) each Stock Option intended to qualify as an "incentive stock option" under Section 422 of the Internal Revenue Code of 1986, as amended (the ***"Code"***), so qualifies, (ii) each grant of a Stock Option was duly authorized by all necessary corporate action, including, as applicable, approval by the board of directors of the Company (or a duly constituted and authorized committee thereof) and any required stockholder approval by the necessary number of votes or written consents, and the award agreement governing such grant (if any), to the Company's knowledge, was duly executed and delivered by each party thereto, (iii) each such grant was made in all material respects in accordance with the terms of the Company Stock Plans, and (iv) each such grant was properly accounted for in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("***IFRS***") in the financial statements (including the related notes) of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>No Violation or Default</u>. Neither the Company nor any of its subsidiaries is: (i) in violation of its charter, by-laws or similar organizational documents; (ii) in default, and no event has occurred that, with notice or lapse of time or both, would constitute such a default, in the due performance or observance of any term, covenant, condition or other obligation contained in any indenture, mortgage, deed of trust, loan agreement, contract, undertaking or other agreement or instrument to which the Company or any of its subsidiaries is a party or by which the Company or any of its subsidiaries is bound or to which any property, right or asset of the Company or any of its subsidiaries is subject; or (iii) in violation of any law or statute applicable to the Company or any of its subsidiaries or any judgment, order, rule or regulation of any court or arbitrator or governmental or regulatory authority having jurisdiction over the Company or any of its subsidiaries, or any of their respective properties or assets, except, in the case of clauses (ii) and (iii) above, for any such default or violation that would not, individually or in the aggregate, have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>No Conflicts</u>. None of (i) the execution, delivery and performance of this Agreement by the Company, (ii) the issuance, sale and delivery of the Firm Shares or the Option Shares, (iii) the application of the proceeds of the offering as described under "Use of Proceeds" in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus, or (iv) the consummation of the transactions contemplated herein will: (x) result in any violation of the terms or provisions of the charter, by-laws or similar organizational documents of the Company or any of its subsidiaries; (y) conflict with, result in a breach or violation of, or require the approval of stockholders, members or partners or any approval or consent of any persons under, any of the terms or provisions of, constitute a default under, result in the termination, modification, or acceleration of, or result in the creation or imposition of any lien, charge or encumbrance upon any property, right or asset of the Company or any of its subsidiaries pursuant to, any indenture, mortgage, deed of trust, loan agreement, note agreement, contract, undertaking or other agreement, obligation, condition, covenant or instrument to which the Company or any of its subsidiaries is a party or by which the Company or any of its subsidiaries is bound or to which any property, right or asset of the Company or any of its subsidiaries is subject; or (z) result in the violation of any law, statute, judgment, order, rule, decree or regulation applicable to the Company or any of its subsidiaries of any court, arbitrator, governmental or regulatory authority, agency or body having jurisdiction over the Company or any of its subsidiaries or any of their respective properties or assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>No Consents Required</u>. No consent, approval, authorization, order, filing, registration, license or qualification of or with any court, arbitrator, or governmental or regulatory authority, agency, or body is required for (i) the execution, delivery and performance by the Company of this Agreement; (ii) the issuance, sale and delivery of the Firm Shares and the Option Shares; or (iii) the consummation of the transactions contemplated herein, except for such consents, approvals, authorizations, orders, filings, registrations or qualifications as (x) have already been obtained or made and are still in full force and effect, (y) may be required by FINRA, and (z) may be required under applicable state securities laws in connection with the purchase, distribution and resale of the Firm Shares and the Option Shares by the Underwriter**.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>Independent Accountants</u>. Ernst & Young Audit S.A.S., a member practice of Ernst & Young Global Limited, which expressed its opinion with respect to the financial statements (which term as used in this Agreement includes the related notes thereto) and supporting schedules included in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus, is an independent registered public accounting firm with respect to the Company and its subsidiaries within the meaning of the rules and regulations of the Commission and the Public Company Accounting Oversight Board and as required by the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) <u>Financial Statements and Other Financial Data</u>. The financial statements (including the related notes thereto), together with the supporting schedules, included in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus comply in all material respects with the applicable requirements of the Securities Act and present fairly the consolidated financial position of the entities to which they relate as of and at the dates indicated and the results of their operations and cash flows for the periods specified. Such financial statements, notes and schedules have been prepared in conformity with IFRS applied on a consistent basis throughout the periods involved, except as may be expressly stated in the notes thereto and except, in the case of unaudited interim financial statements, subject to normal year end audit adjustments and the exclusion of certain footnotes as permitted by the applicable rules of the Commission. The financial data set forth in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus under the captions "Capitalization" present fairly the information set forth therein on a basis consistent with that of the audited financial statements included in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) <u>Statistical and Market-Related Data</u>. The statistical and market-related data included in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus are based on or derived from sources that the Company reasonably believes to be accurate and reliable in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Forward-Looking Statements</u>. No forward-looking statement (within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act) included in the Registration Statement, the Pricing Disclosure Package or the Final Prospectus has been made or reaffirmed without a reasonable basis or has been disclosed other than in good faith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) <u>Legal Proceedings</u>. Except as disclosed in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus, (i) there are no legal, governmental or regulatory investigations, actions, demands, claims, suits, arbitrations, inquiries or proceedings (collectively, ***"Actions"***) pending to which the Company or any of its subsidiaries is or may be a party or to which any property, right or asset of the Company or any of its subsidiaries is or may be the subject that, individually or in the aggregate, if determined adversely to the Company or any of its subsidiaries, could have a Material Adverse Effect; and (ii) to the knowledge of the Company, no such Actions are threatened or contemplated by any governmental or regulatory authority or by others.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) <u>Labor Disputes</u>. No labor disturbance by or dispute with the employees of the Company or any of its subsidiaries exists or, to the knowledge of the Company, is threatened or contemplated that could, individually or in the aggregate, have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) <u>Intellectual Property Rights</u>. (i) The Company and its subsidiaries own or have the right to use all patents, patent applications, trademarks, service marks, trade names, and other source indicators and registrations and applications for registration thereof, domain name registrations, copyrights and registrations and applications for registration thereof, technology and know-how, trade secrets, and all other intellectual property and related proprietary rights (collectively, ***"Intellectual Property Rights"***) necessary to conduct their respective businesses; (ii) other than as disclosed in the Prospectus, neither the Company nor any of its subsidiaries has received any notice of infringement, misappropriation or other conflict with (and neither the Company nor any of its subsidiaries is otherwise aware of any infringement, misappropriation or other conflict with) the Intellectual Property Rights of any other person, except for such infringement, misappropriation or other conflict as could not have a Material Adverse Effect; and (iii) to the knowledge of the Company, the Intellectual Property Rights of the Company and its subsidiaries are not being infringed, misappropriated or otherwise violated by any person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) <u>Licenses and Permits</u>. (i) The Company and its subsidiaries possess such valid and current certificates, authorizations, approvals, licenses and permits (collectively, ***"Authorizations"***) issued by, and have made all declarations, amendments, supplements and filings with, the appropriate state, federal or foreign regulatory agencies or bodies necessary to own, lease and operate their respective properties and to conduct their respective businesses as set forth in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus; (ii) all such Authorizations are valid and in full force and effect and the Company and its subsidiaries are in compliance with the terms and conditions of all such Authorizations; and (iii) neither the Company nor any of its subsidiaries has received notice of any revocation, termination or modification of, or non-compliance with, any such Authorization or has any reason to believe that any such Authorization will not be renewed in the ordinary course, except where, in the case of clauses (i), (ii) and (iii), the failure to possess, make or obtain such Authorizations (by possession, declaration or filing) could not, individually or in the aggregate, have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) <u>Title to Property</u>. Neither the Company nor any of its subsidiaries own any real property. The Company and its subsidiaries have good and marketable title to, or have valid and enforceable rights to lease or otherwise use, all items of personal property (other than with respect to Intellectual Property Rights, which is addressed exclusively in Section 1(y)) that are material to the respective businesses of the Company and its subsidiaries, in each case, free and clear of all liens, encumbrances, claims, and defects and imperfections of title, except such liens, encumbrances, claims, defects and imperfections as (i) are disclosed in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus, or (ii) do not materially affect the value of such property and do not materially interfere with the use made or proposed to be made of such property by the Company and its subsidiaries. The Company and its subsidiaries have good and marketable title to, or have valid and enforceable rights to lease or otherwise use, all items of real and personal property that are material to the respective businesses of the Company and its subsidiaries, in each case, free and clear of all liens, encumbrances, claims and defects and imperfections of title, except such liens, encumbrances, claims, defects and imperfections as (i) are disclosed in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus, or (ii) do not materially affect the value of such property and do not materially interfere with the use made or proposed to be made of such property by the Company and its subsidiaries. All items of real and personal property held under lease by the Company and its subsidiaries are held under valid, subsisting and enforceable leases, with such exceptions as do not materially interfere with the use made or proposed to be made of such property by the Company and its subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) <u>Taxes</u>. The Company and each of its subsidiaries have filed all federal, state, local and foreign tax returns required to be filed through the date hereof or have timely requested extensions thereof and have paid all taxes required to be paid thereon (except as currently being contested in good faith and for which reserves required by IFRS have been created in the financial statements of the Company). The charges, accruals and reserves in respect of any income and other tax liability in the financial statements of the Company referred to in Section 1(t) are adequate, in accordance with IFRS principles, to meet any assessments for any taxes of the Company accruing through the end of the last period specified in such financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) <u>Investment Company Act</u>. Neither the Company nor any of its subsidiaries is or, after giving effect to the offer and sale of the Firm Shares and the Option Shares and the application of the proceeds therefrom as described under "Use of Proceeds" in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus, will be required to register as an "investment company" (as defined in the Investment Company Act).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) <u>Insurance</u>. The Company and its subsidiaries are insured by recognized, financially sound institutions in such amounts, with such deductibles and covering such losses and risks as the Company reasonably believes to be adequate for the conduct of their respective businesses and the value of their respective properties and as is prudent and customary for companies engaged in similar businesses in similar industries. All insurance policies and fidelity or surety bonds insuring the Company and its subsidiaries or their respective businesses, assets, employees, officers and directors are in full force and effect; the Company and its subsidiaries are in compliance with the terms of such policies in all material respects; neither the Company nor any of its subsidiaries has received notice from any insurer or agent of such insurer that capital improvements or other expenditures are required to be made in order to continue such insurance; and neither the Company nor any of its subsidiaries has been refused any insurance coverage sought or applied for. There are no claims by the Company or any of its subsidiaries under any such policy as to which any insurer is denying liability or defending under a reservation of rights clause; and neither the Company nor any of its subsidiaries has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that could not have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) <u>No Stabilization or Manipulation</u>. None of the Company, its Affiliates or to the knowledge of the Company, any person acting on its or any of their behalf (other than the Underwriter, as to which no representation or warranty is given) has taken, directly or indirectly, any action designed to or that has constituted or that could reasonably be expected to cause or result in the stabilization or manipulation of the price of any securities of the Company. The Company acknowledges that the Underwriter may engage in passive market making transactions in the Ordinary Shares on the Nasdaq Capital Market (the ***"Exchange"***) in accordance with Regulation M under the Exchange Act (***"Regulation M"***).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) <u>Compliance with the Sarbanes-Oxley Act</u>. The Company will implement the relevant programs and take reasonable steps to ensure the Company's compliance (not later than the relevant statutory and regulatory deadlines therefor) with all of the applicable provisions of the Sarbanes-Oxley Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) <u>Accounting Controls</u>. The Company and its subsidiaries are in the process of implementing a system of internal accounting controls designed to provide reasonable assurance that: (i) transactions are executed in accordance with management's general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with IFRS and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management's general or specific authorization, and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. Other than as disclosed in the Registration Statement, since the date of the most recent balance sheet included in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus, (x) management of the Company has not identified (A) any new significant deficiencies or material weaknesses in the design or operation of the internal control over financial reporting of the Company and its subsidiaries which could adversely affect the Company's ability to record, process, summarize, and report financial data; or (B) any fraud, whether or not material, that involves management or other employees who have a role in the internal control over financial reporting of the Company or its subsidiaries; and (y) there have been no significant changes in the internal control over financial reporting of the Company or its subsidiaries or in other factors that could significantly affect, such internal control over financial reporting, since the respective dates as of which information is given in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) <u>Disclosure Controls and Procedures</u>. The Company and its subsidiaries have established and maintain disclosure controls and procedures (as such term is defined in Rule 13a-15(e) under the Exchange Act) that are designed to comply with the requirements of the Exchange Act; such disclosure controls and procedures are designed to ensure that information required to be disclosed by the Company and its subsidiaries in the reports they file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Commission's rules and forms, including controls and procedures designed to ensure that such information is accumulated and communicated to the Company's management as appropriate to allow timely decisions regarding required disclosure; and such disclosure controls and procedures are effective to perform the functions for which they were established.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Compliance with Environmental Laws</u>. The Company and each of its subsidiaries (i) are, and at all times prior hereto were, in compliance with all Environmental Laws (as defined below) applicable to such entity, which compliance includes, without limitation, obtaining, maintaining and complying with all permits and authorizations and approvals required by Environmental Laws to conduct their respective businesses; and (ii) have not received notice or otherwise have knowledge of any actual or alleged violation of Environmental Laws, or of any actual or potential liability for or other obligation concerning the presence, disposal or release of hazardous or toxic substances or wastes, pollutants or contaminants. And, except as described in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus, (x) there are no proceedings that are pending, or known to be contemplated, against the Company or any of its subsidiaries under Environmental Laws, other than such proceedings which would not, individually or in the aggregate, have a Material Adverse Effect; (y) none of the Company or any of its subsidiaries is aware of any issues regarding compliance with Environmental Laws, including any pending or proposed Environmental Laws, or liabilities or other obligations under Environmental Laws or concerning hazardous or toxic substances or wastes, pollutants or contaminants, that could reasonably be expected to have a material effect on the capital expenditures, earnings or competitive position of the Company and its subsidiaries; and (z) none of the Company or any of its subsidiaries anticipates material capital expenditures relating to Environmental Laws.

As used herein, the term ***"Environmental Laws"*** means any laws, regulations, ordinances, rules, orders, judgments, decrees, permits or other legal requirements of any governmental authority, including, without limitation, any international, foreign, national, state, provincial, regional, or local authority, relating to pollution, the protection of human health or safety, the environment, or natural resources, or to the use, handling, storage, manufacturing, transportation, treatment, discharge, disposal or release of hazardous or toxic substances or wastes, pollutants or contaminants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) <u>Reserved</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) <u>Related Party Transactions</u>. Except as disclosed in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus, no relationship, direct or indirect, exists between or among the Company or any of its subsidiaries, on the one hand, and the directors, officers, stockholders, other Affiliates, customers or suppliers of the Company or any of its subsidiaries, on the other hand, that would be required by the Securities Act to be described in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) <u>No Unlawful Contributions or Other Payments</u>. Neither the Company nor any of its subsidiaries nor, to the knowledge of the Company, any director, officer, agent, employee, Affiliate or other person associated with or acting on behalf of the Company or any of its subsidiaries has (i) used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expense relating to political activity; (ii) made any direct or indirect unlawful payment to any foreign or domestic government or regulatory official or employee; (iii) made any bribe, rebate, payoff, influence payment, kickback or other unlawful payment; or (iv) violated or is in violation of any provision of (y) the Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder (the ***"FCPA"***), or (z) any non-U.S. anti-bribery or anti-corruption statute or regulation. The Company and its subsidiaries have instituted and maintain and enforce policies and procedures designed to promote and ensure compliance with all applicable anti-bribery and anti-corruption laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) <u>Compliance with Anti-Money Laundering Laws</u>. The operations of the Company and its subsidiaries are and have been conducted at all times in compliance with all applicable financial recordkeeping and reporting requirements, including the applicable anti-money laundering statutes of all jurisdictions where the Company or any of its subsidiaries conduct business, the rules and regulations thereunder and any related or similar rules, regulations or guidelines issued, administered or enforced by any governmental agency (collectively, the ***"Anti-Money Laundering Laws"***); and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company or any of its subsidiaries with respect to the Anti-Money Laundering Laws is pending or, to the knowledge of the Company, threatened.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) <u>Compliance with OFAC</u>. Neither the Company nor any of its subsidiaries nor, to the knowledge of the Company, any director, officer, agent, employee or Affiliate of the Company or any of its subsidiaries is an individual or entity (an ***"OFAC Person"***), or is owned or controlled by an OFAC Person, that is currently the subject or target of any sanctions administered or enforced by the U.S. government (including, without limitation, the Office of Foreign Assets Control of the U.S. Treasury Department (***"OFAC"***) or the U.S. Department of State and including, without limitation, the designation as a "specially designated national" or "blocked person"), the United Nations Security Council, the European Union, Her Majesty's Treasury, or other relevant sanctions authority (collectively, ***"Sanctions"***), nor is the Company or any of its subsidiaries located, organized or resident in a country or territory that is the subject or the target of Sanctions, including, without limitation, Crimea, Cuba, Iran, North Korea, Sudan and Syria (each, a ***"Sanctioned Country"***); and the Company will not directly or indirectly use the proceeds of the offering, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other OFAC Person (i) to fund or facilitate any activities of or business with any OFAC Person that, at the time of such funding or facilitation, is the subject or the target of Sanctions, (ii) to fund or facilitate any activities or business in any Sanctioned Country or (iii) in any other manner that will result in a violation by any OFAC Person (including any OFAC Person participating in the transaction, whether as underwriter, advisor, investor or otherwise) of Sanctions. Since the Company's inception, the Company and its subsidiaries have not knowingly engaged in and are not now knowingly engaged in any dealings or transactions with any OFAC Person that at the time of the dealing or transaction is or was the subject or the target of Sanctions or with any Sanctioned Country.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo) <u>No Registration Rights</u>. Except as described in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus, there are no contracts, agreements or understandings between the Company or any of its subsidiaries, on the one hand, and any person, on the other hand, granting such person any rights to require the Company or any of its subsidiaries to file a registration statement under the Securities Act with respect to any securities of the Company or any of its subsidiaries owned or to be owned by such person or to require the Company or any of its subsidiaries to include such securities in any securities to be registered pursuant to any registration statement to be filed by the Company or any of its subsidiaries under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(pp) <u>Subsidiaries</u>. The Company does not own or control, directly or indirectly, any corporation, association or other entity other than the subsidiaries listed in Exhibit 21.1 to the Registration Statement. The subsidiaries of the Company listed in Schedule III hereto are the only "significant subsidiaries" (as defined under Rule 1.02(w) of Regulation S-X under the Securities Act) of the Company (the ***"Significant Subsidiaries"***).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(qq) <u>No Restrictions on Subsidiaries</u>. No subsidiary of the Company is currently prohibited, directly or indirectly, from paying any dividends to the Company, from making any other distribution on such subsidiary's capital stock or similar ownership interest, from repaying to the Company any loans or advances to such subsidiary from the Company or from transferring any of such subsidiary's properties or assets to the Company or any other subsidiary of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(rr) <u>No Broker's Fees</u>. Except as disclosed in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus, neither the Company nor any of its subsidiaries is a party to any contract, agreement or understanding with any person (other than this Agreement) that would give rise to a valid claim against any of them or the Underwriter for a brokerage commission, finder's fee or like payment in connection with the offering and sale of the Firm Shares or the Option Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ss) <u>Exchange Listing</u>. Subject to notice of issuance, the Shares have been approved for listing on the Exchange.

Any certificate signed by an officer of the Company and delivered to the Underwriter or to counsel for the Underwriter shall be deemed to be a representation and warranty by the Company to the Underwriter as to the matters set forth therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>2. Representations and Warranties of the Underwriter</u>.

The Underwriter represents and warrants to, and agrees with, the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>No Testing-the-Waters Communications</u>. The Underwriter has not (i) alone engaged in any Testing-the-Waters Communication and (ii) authorized anyone to engage in Testing-the-Waters Communications. The Underwriter has not distributed, or authorized anyone else to distribute, any Written Testing-the-Waters Communications.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Underwriter covenants with the Company not to take any action that would result in the Company being required to file with the Commission under Rule 433(d) a free writing prospectus prepared by or on behalf of such Underwriter that otherwise would not be required to be filed by the Company thereunder, without the Company's permission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>3. Purchase and Resale</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Agreements to Sell and Purchase</u>. On the basis of the representations, warranties and covenants herein and subject to the conditions herein and any adjustments made in accordance with Section 3(c) and 13 hereof,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company agrees to issue and sell the Firm Shares to the Underwriter; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Underwriter agrees to purchase from the Company the number of Firm Shares set forth opposite the Underwriter's name in Schedule I hereto, subject to such adjustments as the Underwriter in its sole discretion shall make to eliminate any sales or purchases of fractional Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Firm Shares are to be offered initially to the public at the offering price set forth on the cover page of the Final Prospectus (the ***"Public Offering Price"***). The purchase price per Firm Share to be paid by the Underwriter to the Company shall be $[●] per share (representing 92% of the Public Offering Price) (the ***"Purchase Price"***).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Payment for the Firm Shares (the ***"Firm Shares Payment"***) shall be made by wire transfer in immediately available funds to the accounts specified by the Company to the Underwriter at the offices of Kaufman & Canoles, P.C. at 10:00 a.m., ET, on [●], 2023 or at such other place on the same or such other date and time, not later than the fifth Business Day thereafter, as the Underwriter and the Company may agree upon in writing (the ***"Closing Date"***). The Firm Shares Payment shall be made against delivery of the Firm Shares to be purchased on the Closing Date to the Underwriter with any transfer taxes, stamp duties and other similar taxes payable in connection with the sale of the Firm Shares duly paid by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Over-Allotment Option</u>. On the basis of the representations, warranties and covenants herein and subject to the conditions herein,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Underwriter shall have the option to purchase the Option Shares from the Company (the ***"Over-Allotment Option"***), in each case, at a price per share equal to the Purchase Price less an amount per share equal to any dividends or distributions declared by the Company and payable on the Firm Shares but not payable on the Option Shares (the ***"Over-Allotment Option Purchase Price"***);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) upon an exercise of the Over-Allotment Option and subject to the terms and conditions herein, the Company agrees to issue and sell the Option Shares to the Underwriter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Underwriter may exercise the Over-Allotment Option at any time in whole, or from time to time in part, on or before the forty-fifth (45th) day following the date of the Final Prospectus, by written notice from the Underwriter to the Company (the ***"Over-Allotment Exercise Notice"***). The Underwriter must give the Over-Allotment Exercise Notice to the Company at least two (2) Business Days prior to the Closing Date or the applicable Additional Closing Date, as the case may be. The Underwriter may cancel any exercise of the Over-Allotment Option at any time prior to the Closing Date or the applicable Additional Closing Date, as the case may be, by giving written notice of such cancellation to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The Over-Allotment Exercise Notice shall set forth:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the aggregate number of Option Shares as to which the Over-Allotment Option is being exercised;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the Over-Allotment Option Purchase Price;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the names and denominations in which the Option Shares are to be registered; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) the applicable Additional Closing Date, which may be the same date and time as the Closing Date but shall not be earlier than the Closing Date nor later than the tenth (10th) full Business Day after the date of the Over-Allotment Exercise Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Payment for the Option Shares (the ***"Option Shares Payment"***) shall be made by wire transfer in immediately available funds to the accounts specified by the Company to the Underwriter at the offices of Kaufman & Canoles, P.C. at 10:00 a.m. ET on the date specified in the corresponding Over-Allotment Exercise Notice, or at such other place on the same or such other date and time, not later than the fifth Business Day thereafter, as the Underwriter and the Company may agree upon in writing (an ***"Additional Closing Date"***). The Option Shares Payment shall be made against delivery to the Underwriter of the Option Shares to be purchased on any Additional Closing Date, with any transfer taxes, stamp duties and other similar taxes payable in connection with the sale of the Option Shares duly paid by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) As additional compensation for the Underwriter's services, the Company shall issue to the Underwriter or its designees at the closing of the offering warrants (the ***"Underwriter's Warrant"***) to purchase that number of Company's Ordinary Shares equal to 10.0% of the aggregate number of Ordinary Shares sold in the offering (excluding the overallotment option). The Underwriter's Warrant will be exercisable at any time and from time to time, in whole or in part, during the ten month period commencing six months from the commencement of sales of the public offering, at a price per share equal to 125.0% of the Public Offering Price per Ordinary Share at the offering. The Underwriter's Warrant and the shares issuable upon exercise thereof are sometimes hereinafter referred to collectively as the ***"Underwriter's Securities*.***"*** The Underwriter understands and agrees that there are restrictions pursuant to FINRA Rule 5110 against transferring the Underwriter's Warrant and the underlying shares during the 180-day period after the commencement of sales of the public offering and by its acceptance thereof shall agree that it and its respective designees, if any, will not, sell, transfer, assign, pledge or hypothecate the Underwriter's Securities, or any portion thereof, or be the subject of any hedging, short sale, derivative, put or call transaction that would result in the effective economic disposition of such securities for a period of 180 days following the commencement of sales of the public offering to anyone other than (A) the Underwriter or a selected dealer in connection with the Offering, or (B) a bona fide officer or partner of the Underwriter; and only if any such transferee agrees to the foregoing lock-up restrictions. Delivery of the executed Underwriter's Warrant Agreement shall be made on the Closing Date and the Underwriter's Warrant shall be issued in the name or names and in such authorized denominations as the Underwriter may request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Public Offering</u>. The Company understands that the Underwriter intends to make a public offering of the Shares as soon after the effectiveness of this Agreement as in the judgment of the Underwriter is advisable, and initially to offer the Shares on the terms set forth in the Final Prospectus. The Company acknowledges and agrees that the Underwriter may offer and sell Shares to or through any Affiliate of the Underwriter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>4. Covenants of the Company</u>. The Company hereby covenants and agrees with the Underwriter as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Filings with the Commission</u>. The Company will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) prepare and file the Final Prospectus (in a form approved by the Underwriter and containing the Rule 430A Information) with the Commission in accordance with and within the time periods specified by Rules 424(b) and 430A under the Securities Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) file any Issuer Free Writing Prospectus with the Commission to the extent required by Rule 433 under the Securities Act; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) file with the Commission such reports as may be required by Rule 463 under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Notice to the Underwriter</u>. The Company will advise the Underwriter promptly, and confirm such advice in writing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) when the Registration Statement has become effective;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) when the Final Prospectus has been filed with the Commission;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) when any amendment to the Registration Statement has been filed or becomes effective;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) when any Rule 462(b) Registration Statement has been filed with the Commission;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) when any supplement to the Final Prospectus, any Issuer Free Writing Prospectus, any Written Testing-the-Waters Communication or any amendment to the Final Prospectus has been filed or distributed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) of (x) any request by the Commission for any amendment to the Registration Statement or any amendment or supplement to the Final Prospectus, (y) the receipt of any comments from the Commission relating to the Registration Statement or (z) any other request by the Commission for any additional information, including, but not limited to, any request for information concerning any Testing-the-Waters Communication;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) of (x) the issuance by the Commission of any order suspending the effectiveness of the Registration Statement or preventing or suspending the use of the Registration Statement, the Pricing Disclosure Package, the Final Prospectus, any Preliminary Prospectus, any Issuer Free Writing Prospectus or any Written Testing-the-Waters Communication or (y) the initiation or, to the knowledge of the Company, threatening of any proceeding for that purpose or pursuant to Section 8A of the Securities Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) of the occurrence of any event or development within the Prospectus Delivery Period as a result of which, the Final Prospectus, the Pricing Disclosure Package, any Issuer Free Writing Prospectus or any Written Testing-the-Waters Communication as then amended or supplemented would include any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances existing when the Final Prospectus, the Pricing Disclosure Package, any such Issuer Free Writing Prospectus or any such Written Testing-the-Waters Communication is delivered to a purchaser, not misleading;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) of the issuance by any governmental or regulatory authority or any order preventing or suspending the use of any of the Registration Statement, the Pricing Disclosure Package, the Final Prospectus, any Preliminary Prospectus, any Issuer Free Writing Prospectus or any Testing-the-Waters Communication or the initiation or threatening for that purpose; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) of the receipt by the Company of any notice with respect to any suspension of the qualification of the Shares for offer and sale in any jurisdiction or the initiation or, to the knowledge of the Company, threatening of any proceeding for such purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Reserved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Ongoing Compliance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If during the Prospectus Delivery Period:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any event or development shall occur or condition shall exist as a result of which the Final Prospectus as then amended or supplemented would include any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances existing when the Final Prospectus is delivered to a purchaser, not misleading, the Company will, as soon as reasonably possible, notify the Underwriter thereof and forthwith prepare and, subject to Section 4(e) hereof, file with the Commission and furnish, at its own expense, to the Underwriter and to such dealers as the Underwriter may designate such amendments or supplements to the Final Prospectus as may be necessary so that the statements in the Final Prospectus as so amended or supplemented will not, in the light of the circumstances existing when the Final Prospectus is delivered to a purchaser, be misleading; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) it is necessary to amend or supplement the Final Prospectus to comply with applicable law, the Company will, as soon as reasonably possible, notify the Underwriter thereof and forthwith prepare and, subject to Section 4(e) hereof, file with the Commission and furnish, at its own expense, to the Underwriter and to such dealers as the Underwriter may designate such amendments or supplements to the Final Prospectus as may be necessary so that the Final Prospectus will comply with applicable law; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if at any time prior to the Closing Date or any Additional Closing Date, as the case may be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any event or development shall occur or condition shall exist as a result of which the Pricing Disclosure Package as then amended or supplemented would include any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances existing when the Pricing Disclosure Package is delivered to a purchaser, not misleading, the Company will immediately notify the Underwriter thereof and forthwith prepare and, subject to Section 4(e) hereof, file with the Commission (to the extent required) and furnish, at its own expense, to the Underwriter and to such dealers as the Underwriter may designate such amendments or supplements to the Pricing Disclosure Package as may be necessary so that the statements in the Pricing Disclosure Package as so amended or supplemented will not, in the light of the circumstances existing when the Pricing Disclosure Package is delivered to a purchaser, be misleading; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) it is necessary to amend or supplement the Pricing Disclosure Package to comply with applicable law, the Company will immediately notify the Underwriter thereof and forthwith prepare and, subject to Section 4(e) hereof, file with the Commission (to the extent required) and furnish, at its own expense, to the Underwriter and to such dealers as the Underwriter may designate such amendments or supplements to the Pricing Disclosure Package as may be necessary so that the Pricing Disclosure Package will comply with applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Amendments, Supplements and Issuer Free Writing Prospectuses</u>. Before (i) using, authorizing, approving, referring to, distributing or filing any Issuer Free Writing Prospectus, (ii) filing (x) any Rule 462(b) Registration Statement or (y) any amendment or supplement to the Registration Statement or the Final Prospectus, or (iii) distributing any amendment or supplement to the Pricing Disclosure Package or the Final Prospectus, the Company will furnish to the Underwriter and counsel for the Underwriter a copy of the proposed Issuer Free Writing Prospectus, Rule 462(b) Registration Statement or other amendment or supplement for review and will not use, authorize, refer to, distribute or file any such Issuer Free Writing Prospectus or Rule 462(b) Registration Statement, or file or distribute any such proposed amendment or supplement (A) to which the Underwriter objects in a timely manner and (B) which is not in compliance with the Securities Act. The Company will, pursuant to reasonable procedures developed in good faith, retain copies of each Issuer Free Writing Prospectus that is not filed with the Commission in accordance with Rule 433 under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Delivery of Copies</u>. The Company will, upon request of the Underwriter, deliver, without charge, (i) to the Underwriter, three signed copies of the Registration Statement as originally filed and each amendment thereto, in each case, including all exhibits and consents filed therewith; and (ii) to each Underwriter (A) a conformed copy of the Registration Statement as originally filed and each amendment thereto (without exhibits and consents) and (B) during the Prospectus Delivery Period, as many copies of the Final Prospectus (including all amendments and supplements thereto and each Issuer Free Writing Prospectus) as the Underwriter may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Emerging Growth Company Status</u>. The Company will promptly notify the Underwriter if the Company ceases to be an Emerging Growth Company at any time prior to the later of (i) completion of the distribution of the Shares within the meaning of the Securities Act and (ii) completion of the Lock-Up Period (as defined below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Blue Sky Compliance</u>. The Company will use its best efforts, with the Underwriter's cooperation, if necessary, to qualify or register (or to obtain exemptions from qualifying or registering) the Shares and the Underwriter's Securities for offer and sale under the securities or Blue Sky laws of such jurisdictions as the Underwriter shall reasonably request and will use its reasonable best efforts, with the Underwriter's cooperation, if necessary, to continue such qualifications, registrations and exemptions in effect so long as required for the distribution of the Shares and the Underwriter's Securities; <u>provided</u> that the Company shall not be required to (i) qualify as a foreign corporation or other entity or as a dealer in securities in any such jurisdiction where it would not otherwise be required to so qualify, (ii) file any general consent to service of process in any such jurisdiction or (iii) subject itself to taxation in any such jurisdiction if it is not otherwise so subject.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Earning Statement</u>. The Company will make generally available to its security holders and the Underwriter as soon as practicable an earning statement that satisfies the provisions of Section 11(a) of the Securities Act and Rule 158 under the Securities Act covering a period of at least 12 months beginning with the first fiscal quarter of the Company occurring after the "effective date" (as defined in Rule 158 under the Securities Act) of the Registration Statement; <u>provided</u> that the Company will be deemed to have furnished such statement to its security holders and the Underwriter to the extent it is filed on the Commission's Electronic Data Gathering, Analysis and Retrieval system (***"EDGAR"***).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Use of Proceeds</u>. The Company shall apply the net proceeds from the sale of the Firm Shares and the Option Shares in the manner described under the caption "Use of Proceeds" in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Clear Market</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) For a period of twelve (12) months after from the Closing Date (the ***"Lock-Up Period"***), the Company will not (a) offer, sell, issue, or otherwise transfer or dispose of, directly or indirectly, any equity of the Company or any securities convertible into or exercisable or exchangeable for equity of the Company; (b) file or caused to be filed any registration statement with the Commission relating to the offering of any equity of the Company or any securities convertible into or exercisable or exchangeable for equity of the Company; or (c) enter into any agreement or announce the intention to effect any of the actions described in subsections (a) or (b) hereof (all of such matters, the "***Standstill***"), without the prior written consent of the Underwriter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) So long none of such equity securities shall be saleable in the public market until the expiration of the Lock-up Period, the following matters shall not be prohibited by the Standstill: (i) the adoption of an equity incentive plan and the grant of awards or equity pursuant to any equity incentive plan, and the filing of a registration statement on Form S-8; and (ii) the issuance of equity securities in connection with an acquisition or a strategic relationship, which may include the sale of equity securities. In no event should any equity transaction during the Standstill period result in the sale of equity at an offering price to the public less than that of the offering referred herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If the Underwriter, in its sole discretion, agrees to release or waive the restrictions set forth in any Lock-Up Agreement and provides the Company with notice of the impending release or waiver substantially in the form of Exhibit B hereto at least three (3) Business Days before the effective date of the release or waiver, then the Company agrees to announce the impending release or waiver by a press release substantially in the form of Exhibit C hereto through a major news service at least two (2) Business Days before the effective date of the release or waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>No Stabilization or Manipulation</u>. None of the Company, its Affiliates or any person acting on its or any of their behalf (other than the Underwriter, as to which no covenant is given) will take, directly or indirectly, any action designed to or that constitutes or that could reasonably be expected to cause or result in the stabilization or manipulation of the price of any securities of the Company. The Company acknowledges that the Underwriter may engage in passive market making transactions in the Ordinary Shares on the Exchange in accordance with Regulation M.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Investment Company Act</u>. The Company shall not invest, or otherwise use the proceeds received by the Company from the sale of the Firm Shares or the Option Shares in such a manner as would require the Company or any of its subsidiaries to register as an "investment company" (as defined in the Investment Company Act) under the Investment Company Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Transfer Agent</u>. For the period of two years from the date of this Agreement, the Company shall engage and maintain, at its expense, a registrar and transfer agent for the Ordinary Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Reports</u>. For the period of two years from the date of this Agreement, the Company will furnish to the Underwriter, as soon as they are available, copies of all reports or other communications (financial or other) furnished to holders of the Shares, and copies of any reports and financial statements furnished to or filed with the Commission or any national securities exchange or automatic quotation system; <u>provided</u> that the Company will be deemed to have furnished such reports and financial statements to the Underwriter to the extent they are filed on EDGAR.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Right of First Refusal.</u> The Company agrees that, if, for the period beginning on the closing date of this offering and ending two (2) years after the Closing Date of the offering, the Company or any of its subsidiaries: (i) decides to finance or refinance any indebtedness, the Underwriter (or any affiliate designated by the Underwriter) shall have the right to act as sole book-runner, sole manager, sole placement agent or sole agent with respect to such financing or refinancing; or (ii) decides to raise funds by means of a public offering (including at-the-market facility) or a private placement or any other capital raising financing of equity, equity-linked or debt securities in the public market, the Underwriter (or any affiliate designated by the Underwriter) shall have the right to act as sole book-running manager, sole underwriter or sole placement agent for such financing. If the Underwriter or one of its affiliates decides to accept such engagement, the agreement governing such engagement will contain, among other things, provisions for customary fees for transactions of similar size and nature, but in no event will the fees be less than those outlined herein, and the provisions of this Agreement, including indemnification, which appropriate to such transaction. Notwithstanding the foregoing, the decision to accept the Company's engagement under this Section 4(p) shall be made by the Underwriter or one of its affiliates, by a written notice to the Company, within three (3) days of the receipt of the Company's notification of its financing needs. The foregoing right of first refusal shall not apply to any transaction where the book-running manager, underwriter, or placement agent for such financing is a tier one investment bank in the United States and/or its affiliates as agreed between the Company and the Underwriter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>5. Covenants of the Underwriter</u>. The Underwriter hereby covenants and agrees with the Company as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Underwriter Free Writing Prospectus</u>. The Underwriter has not used, authorized the use of, referred to or participated in the planning for use of, and will not use, authorize the use of, refer to or participate in the planning for use of, any Free Writing Prospectus (which term includes use of any written information furnished to the Commission by the Company and not incorporated by reference into the Registration Statement and any press release issued by the Company) other than (i) a Free Writing Prospectus that contains no "issuer information" filed or required to be filed pursuant to Rule 433(d) under the Securities Act (***"Issuer Information"***) that was not included in the Pricing Prospectus or a previously filed Issuer Free Writing Prospectus, (ii) any Issuer Free Writing Prospectus listed in Schedule II hereto or prepared pursuant to Section 1(e)(iv) or Section 4(e) hereof (including any electronic road show), or (iii) any Free Writing Prospectus prepared by the Underwriter and approved by the Company in advance in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Section 8A Proceedings</u>. The Underwriter is not subject to any pending proceeding under Section 8A of the Securities Act with respect to the offering of the Shares and will promptly notify the Company if any such proceeding against it is initiated during the Prospectus Delivery Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>6. Payment of Expenses</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Company Expenses</u>. The Company hereby agrees to pay on the Closing Date all expenses incident to the performance of the obligations of the Company under this Agreement including, but not limited to: (a) all filing fees and expenses relating to the registration of the Shares with the Commission; (b) all filing fees and expenses associated with the review of the offering of the Shares by FINRA; (c) all fees and expenses relating to the listing of the Shares on the Exchange; (d) all fees, expenses and disbursements relating to the registration or qualification of the Shares under the "blue sky" securities laws of such states and other jurisdictions to the extent such filings are required in connection with the Company's proposed Exchange listing; (e) all fees, expenses and disbursements relating to the registration, qualification or exemption of the Shares under the securities laws of such foreign jurisdictions as the Underwriter may reasonably designate; (f) the costs of all mailing and printing of the Offering documents; (g) transfer and-or stamp taxes, inf any, payable upon the transfer of Shares from the Company to the Underwriter; (h) the fees and expenses of the Company's accountants; and (i) $125,000 for fees and expenses including "road show", diligence, and reasonable legal fees and disbursements for Underwriter's counsel. Except as provided for in this Agreement, the Underwriter shall bear the costs and expenses incurred by them in connection with the sale of the Shares and the transactions contemplated thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Non-accountable Expenses</u>. On the Closing Date, the Company shall pay to the Underwriter, by deduction from the net proceeds of the Offering a non-accountable expense allowance equal to one percent (1.0%) of the gross proceeds received by the Company from the sale of the Shares), provided, however, that in the event that the Offering is terminated, the Company agrees to reimburse the Underwriter pursuant to Section 6(c) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Underwriter Expenses</u>. Except to the extent otherwise provided in this Section 6 or Section 8 hereof, the Underwriter will pay all of their own costs and expenses, including the fees and expenses of their counsel, any stock transfer taxes on resale of any of the Shares held by them, and any advertising expenses connected with any offers they may make.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Company Reimbursement</u>. The provisions of this Section 6 shall not affect any agreement that the Company may make for the sharing of such costs and expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>7. Conditions of the Obligations of the Underwriter</u>. The obligations of the Underwriter to purchase the Firm Shares as provided herein on the Closing Date or the Option Shares as provided herein on any Additional Closing Date, as the case may be, shall be subject to the timely performance by the Company of its covenants and other obligations hereunder, and to each of the following additional conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Registration Compliance; No Stop Order</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Registration Statement and any post-effective amendment thereto shall have become effective, no stop order suspending the effectiveness of the Registration Statement or any post-effective amendment thereto shall be in effect, and no proceeding for such purpose or pursuant to Section 8A of the Securities Act shall be pending before or threatened by the Commission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Company shall have filed the Final Prospectus and each Issuer Free Writing Prospectus with the Commission in accordance with and within the time periods prescribed by Section 4(a) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Company shall have (A) disclosed to the Underwriter all requests by the Commission for additional information relating to the offer and sale of the Shares and (B) complied with such requests to the reasonable satisfaction of the Underwriter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Representations and Warranties</u>. The representations and warranties of the Company contained herein shall be true and correct on the date hereof and on and as of the Closing Date or any Additional Closing Date, as the case may be; and the statements of the Company and its officers made in any certificates delivered pursuant to this Agreement shall be true and correct on and as of the Closing Date or any Additional Closing Date, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Accountants' Comfort Letters</u>. On the date of this Agreement and on the Closing Date or any Additional Closing Date, as the case may be, Ernst & Young Audit S.A.S., a member practice of Ernst & Young Global Limited, shall have furnished to the Underwriter, at the request of the Company, letters, dated the respective dates of delivery thereof and addressed to the Underwriter, in form and substance reasonably satisfactory to the Underwriter, containing statements and information of the type customarily included in accountants' "comfort letters" to underwriters with respect to the financial statements and certain financial information contained in each of the Registration Statement, the Pricing Disclosure Package and the Final Prospectus; <u>provided</u> that the letter delivered on the Closing Date or any Additional Closing Date, as the case may be, shall use a "cut-off" date no more than two (2) Business Days prior to the Closing Date or such Additional Closing Date, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Reserved.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>No Material Adverse Change</u>. No event or condition of a type described in Section 1(l) hereof shall have occurred or shall exist, which event or condition is not described in each of the Pricing Disclosure Package and the Final Prospectus (in each case, exclusive of any amendment or supplement thereto), the effect of which in the judgment of the Underwriter makes it impracticable or inadvisable to proceed with the offering, sale or delivery of the Shares on the Closing Date or any Additional Closing Date, as the case may be, in the manner and on the terms contemplated by this Agreement, the Pricing Disclosure Package and the Final Prospectus (in each case, exclusive of any amendment or supplement thereto).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Opinion and Negative Assurance Letter of Counsel to the Company</u>. Cleary Gottlieb Steen & Hamilton LLP, U.S. counsel to the Company, shall have furnished to the Underwriter, at the request of the Company, its (i) written opinion, addressed to the Underwriter and dated the Closing Date or any Additional Closing Date, as the case may be, and (ii) negative assurance letter, addressed to the Underwriter and dated the Closing Date or any Additional Closing Date, as the case may be, in each case, substantially in the form attached hereto as Exhibit D and Conyers Dill & Pearman LLP, Cayman counsel to the Company, shall have furnished to the Underwriter, at the request of the Company, its written opinion, addressed to the Underwriter and dated the Closing Date or any Additional Closing Date, as the case may be, with respect to Cayman law matters, in each case, each in a form and substance reasonably satisfactory to the Underwriter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Officer's Certificate</u>. The Underwriter shall have received on the date of this Agreement, a certificate from the Company's CFO in form and substance reasonably satisfactory to the Underwriter, containing statements and information confirming that the financial statements and certain financial information contained in the Registration Statement is consistent with the Company's records and does not contain any material misstatements or omissions and shall have received as of the Closing Date or any Additional Closing Date, as the case may be, a certificate of an executive officer of the Company who has specific knowledge of the Company's financial matters and is satisfactory to the Underwriter, (i) confirming that such officer has carefully reviewed the Registration Statement, the Pricing Disclosure Package, the Final Prospectus, each Issuer Free Writing Prospectus and each Written Testing-the-Waters Communication and, to the knowledge of such officer, the representations set forth in Sections 1(a)(ii), 1(b), 1(c)(i), 1(d)(i), 1(e)(i) 1(f)(ii) and 1(i) hereof are true and correct on and as of the Closing Date or any Additional Closing Date, as the case may be; (ii) to the effect set forth in clause (i) of Section 1(l) and Section 7(a) hereof; and (iii) confirming that all of the other representations and warranties of the Company in this Agreement are true and correct on and as of the Closing Date or any Additional Closing Date, as the case may be, and that the Company has complied with all agreements and covenants and satisfied all other conditions on its part to be performed or satisfied hereunder at or prior to the Closing Date or any Additional Closing Date, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>No Legal Impediment to Issuance and Sale</u>. No action shall have been taken and no statute, rule, regulation or order shall have been enacted, adopted or issued by any federal, state or foreign governmental or regulatory authority that would, as of the Closing Date or any Additional Closing Date, as the case may be, prevent the issuance, sale or delivery of the Firm Shares or the Option Shares by the Company; and no injunction or order of any federal, state or foreign court shall have been issued that would, as of the Closing Date or any Additional Closing Date, as the case may be, prevent the issuance, sale or delivery of the Firm Shares or the Option Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Good Standing</u>. The Underwriter shall have received on and as of the Closing Date and any Additional Closing Date, as the case may be, satisfactory evidence of the good standing of the Company in its jurisdiction of organization and its good standing in such other jurisdictions as the Underwriter may reasonably request, in each case, in writing from the appropriate governmental authorities of such jurisdictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Lock-Up Agreements</u>. The Lock-Up Agreements executed by the officers and directors of the Company and certain equityholders of at least 10% of the Company's Ordinary Shares relating to sales and certain other dispositions of Ordinary Shares or certain other securities, delivered to the Underwriter on or before the date hereof, shall be in full force and effect on the Closing Date or any Additional Closing Date, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Underwriter's Warrant</u>. The Underwriter's Warrant, substantially in the form of Exhibit E hereto, executed by the officers of the Company, delivered to the Underwriter on or before the date hereof, shall be in full force and effect on the Closing Date or any Additional Closing Date, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Exchange Listing</u>. On the Closing Date or any Additional Closing Date, as the case may be, the Shares shall have been approved for listing on the Exchange, subject to notice of issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Additional Documents</u>. On or prior to the Closing Date or any Additional Closing Date, as the case may be, the Underwriter and its counsel shall have received such information, certificates and other additional documents from the Company as they may reasonably require for the purpose of enabling them to pass upon the issuance and sale of the Shares as contemplated herein or in order to evidence the accuracy of any of the representations and warranties, or the satisfaction of any of the covenants, closing conditions or other obligations, contained in this Agreement.

All opinions, letters, certificates and other documents delivered pursuant to this Agreement will be deemed to be in compliance with the provisions hereof only if they are reasonably satisfactory in form and substance to counsel for the Underwriter.

If any condition specified in this Section 7 is not satisfied when and as required to be satisfied, this Agreement and all obligations of the Underwriter hereunder may be terminated by the Underwriter by notice to the Company at any time on or prior to the Closing Date or any Additional Closing Date, as the case may be, which termination shall be without liability on the part of any party to any other party, except that the Company shall continue to be liable for the payment of expenses under Section 6 and Section 11 hereof and except that the provisions of Section 8 and Section 9 hereof shall at all times be effective and shall survive any such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>8. Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Indemnification of the Underwriter by the Company</u>. The Company agrees to indemnify and hold harmless the Underwriter, its Affiliates, directors, officers, employees and agents and each person, if any, who controls the Underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act from and against any and all losses, claims, damages and liabilities (including, without limitation, all reasonable legal fees and other expenses incurred in connection with any suit, action or proceeding or any claim asserted, as such fees and expenses are incurred), joint or several, that arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary in order to make the statements therein not misleading, or (ii) any untrue statement or alleged untrue statement of a material fact contained in any Pricing Disclosure Package (including any Pricing Disclosure Package that has subsequently been amended), the Final Prospectus (or any amendment or supplement thereto), any Preliminary Prospectus, any Issuer Information, any Issuer Free Writing Prospectus, any Written Testing-the-Waters Communication or any Road Show, or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case, except insofar as such losses, claims, damages or liabilities arise out of, or are based upon, any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with the Underwriter Information. The indemnity agreement set forth in this Section 8(a) shall be in addition to any liabilities that the Company may otherwise have.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Indemnification of the Company by the Underwriter</u>. The Underwriter agrees to indemnify and hold harmless the Company, its directors, each officer who signed the Registration Statement and each person, if any, who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act from and against any and all losses, claims, damages and liabilities (including, without limitation, all reasonable legal fees and other expenses incurred in connection with any suit, action or proceeding or any claim asserted, as such fees and expenses are incurred), to the same extent as the indemnity set forth in Section 8(a) hereof; provided, however, that the Underwriter shall be liable only to the extent that any untrue statement or omission or alleged untrue statement or omission was made in the Registration Statement (or any amendment or supplement thereto), any Pricing Disclosure Package (including any Pricing Disclosure Package that has subsequently been amended), the Final Prospectus (or any amendment or supplement thereto), any Preliminary Prospectus, any Issuer Information, any Issuer Free Writing Prospectus, any Written Testing-the-Waters Communication or any Road Show in reliance upon, and in conformity with, the Underwriter Information relating to the Underwriter. The indemnity agreement set forth in this Section 8(d) shall be in addition to any liabilities that the Underwriter may otherwise have.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Notifications and Other Indemnification Procedures</u>. If any suit, action, proceeding (including any governmental or regulatory investigation), claim or demand shall be brought or asserted against any person in respect of which indemnification may be sought pursuant to any of the preceding subsections of this Section 8, such person (the ***"Indemnified Person"***) shall promptly notify the person against whom such indemnification may be sought (the ***"Indemnifying Person"***) in writing; <u>provided</u> that the failure to notify the Indemnifying Person shall not relieve it from any liability that it may have under any of the preceding subsections of this Section 8 except to the extent that it has been materially prejudiced by such failure; and <u>provided</u>, further, that the failure to notify the Indemnifying Person shall not relieve it from any liability that it may have to an Indemnified Person otherwise than under any of the preceding subsections of this Section 8. If any such proceeding shall be brought or asserted against an Indemnified Person and it shall have notified the Indemnifying Person thereof, the Indemnifying Person shall retain counsel reasonably satisfactory to the Indemnified Person (who shall not, without the consent of the Indemnified Person, be counsel to the Indemnifying Person) to represent the Indemnified Person in such proceeding and shall pay the reasonable and documented fees and expenses of such counsel related to such proceeding, as incurred. In any such proceeding, any Indemnified Person shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnified Person unless (i) the Indemnifying Person and the Indemnified Person shall have mutually agreed to the contrary; (ii) the Indemnifying Person has failed within a reasonable time to retain counsel reasonably satisfactory to the Indemnified Person; (iii) the Indemnified Person shall have reasonably concluded that there may be legal defenses available to it that are different from or in addition to those available to the Indemnifying Person; or (iv) the named parties in any such proceeding (including any impleaded parties) include both the Indemnifying Person and the Indemnified Person and representation of both parties by the same counsel would be inappropriate due to actual or potential differing interest between them. It is understood and agreed that the Indemnifying Person shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the fees and expenses of more than one separate firm (in addition to any local counsel) for all Indemnified Persons, and that all such fees and expenses shall be paid or reimbursed as they are incurred. Any such separate firm for (i) the Underwriter, its Affiliates, directors, officers, employees and agents and each person, if any, who controls the Underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act shall be designated in writing by the Underwriter; and (ii) the Company, its directors, its officers who signed the Registration Statement and each person, if any, who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act shall be designated in writing by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Settlements</u>. The Indemnifying Person under this Section 8 shall not be liable for any settlement of any proceeding effected without its written consent, which consent may not be unreasonably withheld, but if settled with such consent or if there be a final judgment for the plaintiff, the Indemnifying Person agrees to indemnify the Indemnified Person from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an Indemnified Person shall have requested an Indemnifying Person to reimburse the Indemnified Person for any reasonably incurred and documented fees and expenses of counsel as contemplated by this Section 8, the Indemnifying Person agrees that it shall be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such Indemnifying Person of the aforesaid request, (ii) such Indemnifying Person shall not have reimbursed the Indemnified Person in accordance with such request, or shall not have disputed in good faith the Indemnified Person's entitlement to such reimbursement, prior to the date of such settlement and (iii) such Indemnified Person shall have given the Indemnifying Person at least 45 days' prior notice of its intention to settle. No Indemnifying Person shall, without the prior written consent of the Indemnified Person effect any settlement, compromise or consent to the entry of judgment in any pending or threatened action, suit or proceeding in respect of which any Indemnified Person is or could have been a party and indemnity was or could have been sought hereunder by such Indemnified Person, unless such settlement, compromise or consent (x) includes an unconditional release of such Indemnified Person, in form and substance reasonably satisfactory to such Indemnified Person, from and against all liability on claims that are the subject matter of such action, suit or proceeding and (y) does not include any statements as to or any findings of fault, culpability or failure to act by or on behalf of any Indemnified Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>9. Contribution</u>. To the extent the indemnification provided for in Section 8 hereof is unavailable to or insufficient to hold harmless an Indemnified Person in respect of any losses, claims, damages, liabilities or expenses referred to therein, then each Indemnifying Person, in lieu of indemnifying such Indemnified Person thereunder, shall contribute to the aggregate amount paid or payable by such Indemnified Person, as incurred, as a result of any losses, claims, damages, liabilities or expenses referred to therein (i) in such proportion as is appropriate to reflect the relative benefits received by the Company, on the one hand, and the Underwriter, on the other hand, from the offering of the Shares pursuant to this Agreement or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company, on the one hand, and the Underwriter, on the other hand, in connection with the statements or omissions that resulted in such losses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations. The relative benefits received by the Company, on the one hand, and the Underwriter, on the other hand, in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions as the total net proceeds from the offering of the Shares pursuant to this Agreement (before deducting expenses) received by the Company, on the one hand, and the total underwriting discounts and commissions received by the Underwriter, on the other hand, in each case as set forth in the table on the cover of the Final Prospectus bear to the aggregate initial offering price of the Shares. The relative fault of the Company, on the one hand, and the Underwriter, on the other hand, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company, on the one hand, or the Underwriter, on the other hand, and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.

The amount paid or payable by a party as a result of the losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitations set forth in Section 8 hereof, all reasonable legal or other fees or expenses incurred by such party in connection with investigating or defending any action or claim. The provisions set forth in Section 8 hereof with respect to notice of commencement of any action shall apply if a claim for contribution is to be made under this Section 9; <u>provided</u>, however, that no additional notice shall be required with respect to any action for which notice has been given under Section 8 hereof for purposes of indemnification.

The Company and the Underwriter agree that it would not be just and equitable if contribution pursuant to this Section 9 was determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to in this Section 9.

Notwithstanding the provisions of this Section 9, the Underwriter shall not be required to contribute any amount in excess of the amount by which the total discounts and commissions received by the Underwriter in connection with the Shares distributed by it exceeds the amount of any damages the Underwriter has otherwise paid or become liable to pay by reason of any untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11 of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.

For purposes of this Section 9, each director, officer, employee and agent of the Underwriter and each person, if any, who controls the Underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act shall have the same rights to contribution as the Underwriter, and each director and officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company with the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, shall have the same rights to contribution as the Company.

The remedies provided for in Section 8 and Section 9 hereof are not exclusive and shall not limit any rights or remedies which may otherwise be available to any Indemnified Person at law or in equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>10. Termination</u>. Prior to the delivery of and payment for the Shares on the Closing Date or any Additional Closing Date, as the case may be, this Agreement may be terminated by the Underwriter in the absolute discretion of the Underwriter by notice given to the Company if after the execution and delivery of this Agreement: (i) trading or quotation of any securities issued or guaranteed by the Company shall have been suspended or materially limited on any securities exchange, quotation system or in the over-the-counter market; (ii) trading in securities generally on any of the New York Stock Exchange, the Nasdaq Global Market or the over-the-counter market shall have been suspended or materially limited; (iii) a general banking moratorium on commercial banking activities shall have been declared by federal or New York state authorities; (iv) there shall have occurred a material disruption in commercial banking or securities settlement, payment or clearance services in the United States; (v) there shall have occurred any outbreak or escalation of national or international hostilities or any crisis or calamity, or any change in the United States or international financial markets, or any substantial change or development involving a prospective substantial change in general economic, financial or political conditions in the United States or internationally, as in the judgment of the Underwriter is material and adverse and makes it impracticable or inadvisable to proceed with the offering, sale or delivery of the Shares on the Closing Date or any Additional Closing Date, as the case may be, in the manner and on the terms described in the Pricing Disclosure Package or to enforce contracts for the sale of securities; or (vi) the Company or any of its subsidiaries shall have sustained a loss by strike, fire, flood, earthquake, accident or other calamity of such character as in the judgment of the Underwriter may interfere materially with the conduct of the business and operations of the Company and its subsidiaries, considered as one entity, regardless of whether or not such loss shall have been insured.

Any termination pursuant to this Section 10 shall be without liability on the part of: (x) the Company to the Underwriter, except that the Company shall continue to be liable for the payment of expenses under Section 6; (y) the Underwriter to the Company; or (z) any party hereto to any other party except that the provisions of Section 8, Section 9 and this Section 10 hereof shall at all times be effective and shall survive any such termination. In the event this Agreement is terminated pursuant to this Section 10, the Underwriter shall be entitled to compensation at the percentage set forth in Schedule II hereto with respect to any public or private offering or other financing or capital raising transaction of any kind (***"Tail Financing"***) to the extent that such financing or capital is provided to the Company by investors introduced to the Company by the Underwriter during the period ending August 26, 2023 or the Closing Date, whichever is sooner, if such Tail Financing is consummated at any time within the six (6) month period following the expiration or termination of the Engagement Letter dated August 26, 2022 between the Company and the Underwriter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>11. Reimbursement of the Underwriter's Expenses</u>. If (a) the Company fails to deliver the Shares to the Underwriter for any reason at the Closing Date or any Additional Closing Date, as the case may be, in accordance with this Agreement or (b) the Underwriter declines to purchase the Shares for any reason permitted under this Agreement, then the Company agrees to reimburse the Underwriter for all reasonable out-of-pocket costs and expenses (including the reasonable and documented fees and expenses of counsel to the Underwriter) incurred by the Underwriter in connection with this Agreement and the applicable offering contemplated hereby not to exceed $75,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>12. Representations and Indemnities to Survive Delivery</u>. The respective indemnities, rights of contribution, agreements, representations, warranties and other statements of the Company and the Underwriter set forth in or made pursuant to this Agreement or made by or on behalf of the Company or the Underwriter pursuant to this Agreement or any certificate delivered pursuant hereto shall remain in full force and effect, regardless of any investigation made by or on behalf of the Underwriter, the Company or any of their respective officers or directors or any controlling person, as the case may be, and shall survive delivery of and payment for the Shares sold hereunder and any termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>13. Reserved.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>14. Notices</u>. All notices, requests, consents, claims, demands, waivers and other communications under this Agreement shall be in writing and shall be deemed to have been duly given (i) when delivered by hand (with written confirmation of receipt), (ii) when received by the addressee if sent by a nationally recognized overnight courier (receipt requested), (iii) on the date sent by email of a PDF document (with confirmation of receipt from the intended recipient by return email or other written acknowledgement) if sent during normal business hours of the recipient, and on the next Business Day if sent after normal business hours of the recipient, or (iv) on the third day after the date mailed, by certified or registered mail (in each case, return receipt requested, postage pre-paid). Such communications must be sent to the respective parties at the following addresses (or at such other address for a party as shall be specified in a notice given in accordance with this Section 14):

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| | | |
|:---|:---|:---|
| If to the Underwriter: | Aegis Capital Corp. | Aegis Capital Corp. |
|  | 1345 Avenue of the Americas, 27<sup>th</sup> Floor | 1345 Avenue of the Americas, 27<sup>th</sup> Floor |
|  | New York, NY 10105 | New York, NY 10105 |
|  | Email: | reide@aegiscap.com |
|  | Attention: | Robert Eide |
| with a copy to: | Kaufman & Canoles, P.C. | Kaufman & Canoles, P.C. |
|  | Two James Center | Two James Center |
|  | 1021 East Cary Street, Suite 1400 Richmond, Va. 23219 | 1021 East Cary Street, Suite 1400 Richmond, Va. 23219 |
|  | Email: | awbasch@kaufcan.com |
|  | Attention: | Anthony W. Basch |
| If to the Company: | MERQUEO HOLDINGS | MERQUEO HOLDINGS |
|  | Carrera 11 A # 93 – 52 Of. 501-502 Bogotá, Colombia | Carrera 11 A # 93 – 52 Of. 501-502 Bogotá, Colombia |
|  | Email: | fossa@merqueo.com |
|  | Attention: | Felipe Ossa |
| with a copy to: | Cleary Gottlieb Steen & Hamilton LLP One Liberty Plaza | Cleary Gottlieb Steen & Hamilton LLP One Liberty Plaza |
|  | New York, New York 10006 | New York, New York 10006 |
|  | Email: | abrenneman@cgsh.com |
|  | Attention: | Adam J. Brenneman, Esq. |

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Any party hereto may change the address or facsimile number for receipt of communications by giving written notice to the others in accordance with this Section 14.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Successors</u>. This Agreement shall inure solely to the benefit of and be binding upon the Underwriter, the Company and the other indemnified parties referred to in Section 8 and Section 9 hereof, and in each case their respective successors. Nothing in this Agreement is intended, or shall be construed, to give any other person or entity any legal or equitable right, benefit, remedy or claim under, or in respect of or by virtue of, this Agreement or any provision contained herein. The term "successors," as used herein, shall not include any purchaser of the Shares from the Underwriter merely by reason of such purchase.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Equitable Remedies</u>. Each party to this Agreement acknowledges and agrees that (a) a breach or threatened breach by the Company of any of its obligations under Section 4(k) or Section 4(p) would give rise to irreparable harm to the Underwriter for which monetary damages would not be an adequate remedy and (b) if a breach or a threatened breach by the Company of any such obligations occurs, the Underwriter will, in addition to any and all other rights and remedies that may be available to such party at law, at equity, or otherwise in respect of such breach, be entitled to equitable relief, including a temporary restraining order, an injunction, specific performance of the terms of Sections 4(k) or 4(p), as applicable, and any other relief that may be available from a court of competent jurisdiction, without any requirement to (i) post a bond or other security, or (ii) prove actual damages or that monetary damages will not afford an adequate remedy. Each party to this Agreement agrees that such party shall not oppose or otherwise challenge the existence of irreparable harm, the appropriateness of equitable relief or the entry by a court of competent jurisdiction of an order granting equitable relief, in either case, consistent with the terms of this Section 16.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Partial Unenforceability</u>. The invalidity or unenforceability of any Section, paragraph or provision of this Agreement shall not affect the validity or enforceability of any other Section, paragraph or provision hereof. If any Section, paragraph or provision of this Agreement is for any reason determined to be invalid or unenforceable, there shall be deemed to be made such minor changes (and only such minor changes) as are necessary to make it valid and enforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Governing Law</u>. This Agreement and any claim, controversy or dispute arising under or related to this Agreement, whether sounding in contract, tort or statute, shall be governed by and construed in accordance with the internal laws of the State of New York applicable to agreements made and to be performed in such state (including its statute of limitations), without giving effect to the conflict of laws provisions thereof to the extent such principles or rules would require or permit the application of the laws of any jurisdiction other than those of the State of New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Consent to Jurisdiction</u>. No legal suit, action or proceeding arising out of or relating to this Agreement or the transactions contemplated hereby (each, a ***"Related Proceeding"***) may be commenced, prosecuted or continued in any court other than the courts of the State of New York located in the City and County of New York or in the United States District Court for the Southern District of New York, which courts (collectively, the ***"Specified Courts"***) shall have jurisdiction over the adjudication of any Related Proceeding, and the parties to this Agreement hereby irrevocably consent to the exclusive jurisdiction the Specified Courts and personal service of process with respect thereto. The parties to this Agreement hereby irrevocably waive any objection to the laying of venue of any Related Proceeding in the Specified Courts and irrevocably waive and agree not to plead or claim in any Specified Court that any Related Proceeding brought in any Specified Court has been brought in an inconvenient forum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Waiver of Jury Trial</u>. The parties to this Agreement hereby irrevocably waive, to the fullest extent permitted by applicable law, any and all right to trial by jury in any Related Proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. <u>No Fiduciary Relationship</u>. The Company acknowledges and agrees that: (i) the purchase and sale of the Shares pursuant to this Agreement, including the determination of the offering price of the Shares and any related discounts and commissions, is an arm's-length commercial transaction between the Company, on the one hand, and the Underwriter, on the other hand; (ii) in connection with each transaction contemplated hereby and the process leading to such transaction the Underwriter is and has been acting solely as a principal and is not the agent or fiduciary of the Company or its Affiliates, stockholders, members, partners, creditors or employees or any other party; (iii) the Underwriter has not assumed and will not assume an advisory or fiduciary responsibility in favor of the Company with respect to any of the transactions contemplated hereby or the process leading thereto (irrespective of whether the Underwriter has advised or is currently advising the Company on other matters) or any other obligation to the Company except the obligations expressly set forth in this Agreement; (iv) the Underwriter and its respective Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Company, and the Underwriter has no obligation to disclose any of such interests by virtue of any fiduciary or advisory relationship; and (v) the Underwriter has not provided any legal, accounting, regulatory or tax advice in any jurisdiction with respect to the offering contemplated hereby, and the Company has consulted its own legal, accounting, regulatory and tax advisors to the extent they deemed appropriate. The Company waives and releases, to the full extent permitted by applicable law, any claims it may have against the Underwriter arising from an alleged breach of fiduciary duty in connection with the offering of the Shares or any matters leading up to the offering of the Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. <u>Compliance with the USA Patriot Act</u>. In accordance with the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)), the Underwriter is required to obtain, verify and record information that identifies its clients, including the Company, which information may include the name and address of its clients, as well as other information that will allow the Underwriter to properly identify their respective clients.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. <u>Entire Agreement</u>. This Agreement, together with any contemporaneous written agreements and any prior written agreements (to the extent not superseded by this Agreement) that relate to the offering of the Shares, represents the entire agreement among the Company and the Underwriter with respect to the preparation of the Registration Statement, the Pricing Disclosure Package, the Final Prospectus, each Preliminary Prospectus, each Issuer Free Writing Prospectus, each Testing-the-Waters Communication and each Road Show, the purchase and sale of the Shares and the conduct of the offering contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. <u>Amendments or Waivers</u>. No amendment or waiver of any provision of this Agreement, nor any consent or approval to any departure therefrom, shall in any event be effective unless the same shall be in writing and signed by all the parties hereto. No waiver by any party shall operate or be construed as a waiver in respect of any failure, breach or default not expressly identified by such written waiver, whether of a similar or different character, and whether occurring before or after the waiver. No failure to exercise, or delay in exercising, any right, remedy, power or privilege arising from this Agreement shall operate or be construed as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise of any other right, remedy, power or privilege.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. <u>Section Headings</u>. The headings herein are included for convenience of reference only and are not intended to be part of, or to affect the meaning or interpretation of, this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26. <u>Counterparts</u>. This Agreement may be executed in counterparts, each of which will be deemed an original, but all of which together will be deemed to be one and the same agreement. Counterparts may be delivered via facsimile, email (including PDF or any electronic signature complying with the U.S. federal ESIGN Act of 2000) or other transmission method, and any counterpart so delivered will be deemed to have been duly and validly delivered and be valid and effective for all purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27. <u>Recognition of the U.S. Special Resolution Regimes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event that the Underwriter is a Covered Entity (as defined below) becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer from the Underwriter of this Agreement, and any interest and obligation in or under this Agreement, will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime (as defined below) if this Agreement, and any such interest and obligation, were governed by the laws of the United States or a state of the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that the Underwriter is a Covered Entity or a BHC Act Affiliate (as defined below) of the Underwriter becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights (as defined below) under this Agreement that may be exercised against the Underwriter is permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if this Agreement were governed by the laws of the United States or a state of the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) As used in this section:

***"BHC Act Affiliate"*** has the meaning assigned to the term "affiliate" in, and shall be interpreted in accordance with, 12 U.S.C. § 1841(k).

 ****

***"Covered Entity"*** means any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a "covered entity" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a "covered bank" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a "covered FSI" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).

***"Default Right"*** has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.

 ****

***"U.S. Special Resolution Regime"*** means each of (i) the Federal Deposit Insurance Act and the regulations promulgated thereunder and (ii) Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the regulations promulgated thereunder.

[signature page follows]

If the foregoing is in accordance with your understanding, please indicate your acceptance of this Agreement by signing in the space provided below.

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| | |
|:---|:---|
| Very truly yours, | Very truly yours, |
| By: |  |
| Name: | Felipe Ossa Rodriguez |
| Title: | Chief Executive Officer |

---

<br> Confirmed and accepted as of the date first above written:

---

| | |
|:---|:---|
| Aegis Capital Corp. | Aegis Capital Corp. |
| By: |  |
| Name: | Robert Eide |
| Title: | Chief Executive Officer |

---

**SCHEDULE I**

**Closing Securities**

---

| | | |
|:---|:---|:---|
| <br> **Underwriter** | **Number of Firm<br> Shares to Be <br> Purchased** | **Number of <br> Option Shares<br> to Be Purchased <br> if the Maximum <br> Over-Allotment <br> Option Is Exercised** |
| Aegis Capital Corp. | [●] | [●] |
| **Total:** | [●] | [●] |

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**Schedule II**

**Pricing Disclosure Package**

---

| | | |
|:---|:---|:---|
| Number of Ordinary Shares |  | **[●]** |
| Number of Option Shares |  | **[●]** |
| Number of Underwriter Warrants |  | **[●]** |
| Public Offering Price per Ordinary Share | $| **[●]** |
| Exercise Price of Underwriter Warrant | $| **[●]** |
| Public Price per Option Share | $| **[●]** |
| Underwriting Discount per Ordinary Share | $| **[●]** |
| Underwriting Discount per Option Share | $| **[●]** |

---

**Schedule III**

**Subsidiaries**

**Subsidiary (Jurisdiction of Organization)**

MERQUEO CAYMAN, an exempted company incorporated under the laws of the Cayman Islands with a registered office at Calle 97 # 9 A – 50 Piso 2, Bogotá – Colombia.

MERQUEO S.A.S, a simplified stock corporation incorporated under the laws of the Republic of Colombia with a registered office at Calle 97 # 9 A – 50 Piso 2, Bogotá – Colombia.

MERQUEO INTERNATIONAL S.A.S a simplified stock corporation incorporated under the laws of the Republic of Colombia with a registered office at Calle 97 # 9 A – 50 Piso 2, Bogotá – Colombia.

MERQUEO S.A. DE C.V. a variable stock corporation incorporated under the laws of Mexico with a registered office at Lago Alberto no. 442 Torre A Interior 404 suite 548 col. Anahuac I Seccion. Miguel Hidalgo, Ciudad de Mexico.

MERQUEO COMÉRCIO VAREJISTA E INTERMEDIAÇÃO DE NEGÓCIOS LTDA a limited partnership incorporated under the laws of Brazil with a registered office at Rua Major Paladino nº 275, Vila Leopoldina, CEP: 05307-000, São Paulo/SP.

**Exhibit A**

**Form of Lock-Up Agreement**

_____, 2023

Aegis Capital Corp.

1345 Avenue of the Americas, 27th Floor

New York, NY 10105

Ladies and Gentlemen:

The undersigned understands that Aegis Capital Corp. (the "**Underwriter**"), proposes to enter into an Underwriting Agreement (the "**Underwriting Agreement**") with MERQUEO HOLDINGS, a Cayman Islands exempted company (the "**Company**"), providing for the public offering (the "**Public Offering**") of Ordinary Shares, par value $[●] per share, of the Company (the "**Ordinary Shares**").

To induce the Underwriter to continue its efforts in connection with the Public Offering, the undersigned hereby agrees that, without the prior written consent of the Underwriter, the undersigned will not, during the period commencing on the date hereof and ending one hundred eighty (180) days after the effective date of the Registration Statement on Form F-1 relating to the Public Offering (the "**Lock-Up Period**"), (1) offer, pledge, sell, contract to sell, grant, lend, or otherwise transfer or dispose of, directly or indirectly, any Ordinary Shares or any securities convertible into or exercisable or exchangeable for Ordinary Shares, whether now owned or hereafter acquired by the undersigned or with respect to which the undersigned has or hereafter acquires the power of disposition (collectively, the "**Lock-Up Securities**"); (2) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of the Lock-Up Securities, whether any such transaction described in clause (1) or (2) above is to be settled by delivery of Lock-Up Securities, in cash or otherwise; (3) make any demand for or exercise any right with respect to the registration of any Lock-Up Securities; or (4) publicly disclose the intention to make any offer, sale, pledge or disposition, or to enter into any transaction, swap, hedge or other arrangement relating to any Lock-Up Securities. Notwithstanding the foregoing, and subject to the conditions below, the undersigned may transfer Lock-Up Securities without the prior written consent of the Underwriter in connection with (a) transactions relating to Lock-Up Securities acquired in open market transactions after the completion of the Public Offering; <u>provided</u> that no filing under Section 13 or Section 16(a) of the Securities Exchange Act of 1934, as amended (the "**Exchange Act**"), or other public announcement shall be required or shall be voluntarily made in connection with subsequent sales of Lock-Up Securities acquired in such open market transactions; (b) transfers of Lock-Up Securities as a *bona fide* gift, by will or intestacy or to a family member or trust or other estate planning entity for the benefit of the undersigned or family members (for purposes of this lock-up agreement, "family member" means any relationship by blood, marriage or adoption, not more remote than first cousin); (c) transfers of Lock-Up Securities to a charity or educational institution; (d) if the undersigned is a corporation, partnership, limited liability company or other business entity, (i) any transfers of Lock-Up Securities to another corporation, partnership or other business entity that controls, is controlled by or is under common control with the undersigned or (ii) distributions of Lock-Up Securities to members, partners, stockholders, subsidiaries or affiliates (as defined in Rule 405 promulgated under the Securities Act of 1933, as amended) of the undersigned; (e) if the undersigned is a trust, to a trustee or beneficiary of the trust; <u>provided</u> that in the case of any transfer pursuant to the foregoing clauses (b), (c) (d) or (e), (i) any such transfer shall not involve a disposition for value, (ii) each transferee shall sign and deliver to the Underwriter a lock-up agreement substantially in the form of this lock-up agreement and (iii) no filing under Section 13 or Section 16(a) of the Exchange Act or other public announcement shall be required or shall be voluntarily made during the Lock-Up Period; (f) the receipt by the undersigned from the Company of Ordinary Shares upon the vesting of restricted stock awards or stock units or upon the exercise of options to purchase the Company's Ordinary Shares issued under an equity incentive plan of the Company or an employment arrangement described in the Pricing Prospectus (as defined in the Underwriting Agreement) (the "**Plan Shares**") or the transfer or withholding of Ordinary Shares or any securities convertible into Ordinary Shares to the Company upon a vesting event of the Company's securities or upon the exercise of options to purchase the Company's securities, in each case on a "cashless" or "net exercise" basis or to cover tax obligations of the undersigned in connection with such vesting or exercise, <u>provided</u> that if the undersigned is required to file a report under Section 13 or Section 16(a) of the Exchange Act reporting a reduction in beneficial ownership of Ordinary Shares during the Lock-Up Period, the undersigned shall include a statement in such schedule or report to the effect that the purpose of such transfer was to cover tax withholding obligations of the undersigned in connection with such vesting or exercise and, <u>provided further</u>, that the Plan Shares shall be subject to the terms of this lock-up agreement; (g) the transfer of Lock-Up Securities pursuant to agreements described in the Pricing Prospectus under which the Company has the option to repurchase such securities or a right of first refusal with respect to the transfer of such securities, <u>provided</u> that if the undersigned is required to file a report under Section 13 or Section 16(a) of the Exchange Act reporting a reduction in beneficial ownership of Ordinary Shares during the Lock-Up Period, the undersigned shall include a statement in such schedule or report describing the purpose of the transaction; (h) the establishment of a trading plan pursuant to Rule 10b5-1 under the Exchange Act for the transfer of Lock-Up Securities, <u>provided</u> that (i) such plan does not provide for the transfer of Lock-Up Securities during the Lock-Up Period and (ii) to the extent a public announcement or filing under the Exchange Act, if any, is required of or voluntarily made by or on behalf of the undersigned or the Company regarding the establishment of such plan, such public announcement or filing shall include a statement to the effect that no transfer of Lock-Up Securities may be made under such plan during the Lock-Up Period; (i) the transfer of Lock-Up Securities that occurs by operation of law, such as pursuant to a qualified domestic order or in connection with a divorce settlement, <u>provided</u> that the transferee agrees to sign and deliver a lock-up agreement substantially in the form of this lock-up agreement for the balance of the Lock-Up Period, and <u>provided further</u>, that any filing under Section 13 or Section 16(a) of the Exchange Act that is required to be made during the Lock-Up Period as a result of such transfer shall include a statement that such transfer has occurred by operation of law; and (j) the transfer of Lock- Up Securities pursuant to a bona fide third party tender offer, merger, consolidation or other similar transaction made to all holders of the Ordinary Shares involving a change of control (as defined below) of the Company after the closing of the Public Offering and approved by the Company's board of directors; <u>provided</u> that in the event that the tender offer, merger, consolidation or other such transaction is not completed, the Lock-Up Securities owned by the undersigned shall remain subject to the restrictions contained in this lock-up agreement. For purposes of clause (j) above, "change of control" shall mean the consummation of any bona fide third party tender offer, merger, amalgamation, consolidation or other similar transaction the result of which is that any "person" (as defined in Section 13(d)(3) of the Exchange Act), or group of persons, becomes the beneficial owner (as defined in Rules 13d-3 and 13d- 5 of the Exchange Act) of a majority of total voting power of the voting stock of the Company. The undersigned also agrees and consents to the entry of stop transfer instructions with the Company's transfer agent and registrar against the transfer of the undersigned's Lock-Up Securities except in compliance with this lock-up agreement.

If the undersigned is an officer or director of the Company, (i) the undersigned agrees that the foregoing restrictions shall be equally applicable to any issuer-directed or "friends and family" securities that the undersigned may purchase in the Public Offering; (ii) the Underwriter agrees that, at least three (3) Business Days before the effective date of any release or waiver of the foregoing restrictions in connection with a transfer of Lock-Up Securities, the Underwriter will notify the Company of the impending release or waiver; and (iii) the Company has agreed in the Underwriting Agreement to announce the impending release or waiver by press release through a major news service at least two (2) Business Days before the effective date of the release or waiver. Any release or waiver granted by the Underwriter hereunder to any such officer or director shall only be effective two (2) Business Days after the publication date of such press release. The provisions of this paragraph will not apply if (a) the release or waiver is effected solely to permit a transfer of Lock-Up Securities not for consideration and (b) the transferee has agreed in writing to be bound by the same terms described in this lock-up agreement to the extent and for the duration that such terms remain in effect at the time of such transfer.

The undersigned understands that the Company and the Underwriter are relying upon this lock-up agreement in proceeding toward consummation of the Public Offering. The undersigned further understands that this lock-up agreement is irrevocable and shall be binding upon the undersigned's heirs, legal representative, successors and assigns. The undersigned understands that, if the Underwriting Agreement is not executed by [\*], 2023 or if the Underwriting Agreement (other than the provisions thereof which survive termination) shall terminate or be terminated prior to payment for and delivery of the Ordinary Shares to be sold thereunder, then this lock-up agreement shall be void and of no further force or effect.

Whether or not the Public Offering actually occurs depends on a number of factors, including market conditions. Any Public Offering will only be made pursuant to an Underwriting Agreement, the terms of which are subject to negotiation between the Company and the Underwriter.

This letter agreement, and any claim, controversy or dispute arising under or related to this letter agreement, is to be governed by, and construed in accordance with, the laws of the State of New York.

---

| |
|:---|
| Very truly yours, |
| (Name - Please Print) |
| (Signature) |
| (Name of Signatory, in the case of entities - Please Print) |
| (Title of Signatory, in the case of entities - Please Print) |
| Address: |

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**Exhibit B**

**Form of Lock-Up Waiver**

[●], 202[●]

[NAME AND ADDRESS]

Re: Lock-Up Agreement Waiver

Ladies and Gentlemen:

[Pursuant to Section 7(j) of the Underwriting Agreement, dated [●], 2023 (the ***"Underwriting Agreement"***), among [MERQUEO HOLDINGS], a Cayman Islands exempted company (the ***"Company"***), and Aegis Capital Corp. (the ***"Underwriter"***), and the Lock-Up Agreement, dated [●], 2023 (the ***"Lock-Up Agreement"***), between you and the Underwriter relating to the Company's Ordinary Shares, $[●] par value per share (the ***"Shares"***), the Underwriter hereby gives its consent to allow you to sell up to [●] Shares [solely from and including [DATE] to and including [DATE]].]

[Pursuant to Section 7(j) of the Underwriting Agreement, the Underwriter hereby gives its consent to allow the Company to issue and sell up to [●] Shares pursuant to an offering of the Shares to commence prior to the expiration of the Lock-Up Period as defined in the Underwriting Agreement[, provided that such offering closes on or prior to [●]].]

[*Signature Page Follows*]

**Exhibit C**

**Form of Lock-Up Waiver Press Release**

MERQUEO HOLDINGS,

**[Date]**

MERQUEO HOLDINGS, a Cayman Islands exempted company (the "Company") announced today that Aegis Capital Corp., acting as the Underwriter in the Company's recent public offering of the Company's Ordinary Shares, is [waiving] [releasing] a lock-up restriction with respect to the Company's Ordinary Shares held by [certain officers or directors] [an officer or director] of the Company. The [waiver] [release] will take effect on [Date], and the shares may be sold on or after such date.

**This press release is not an offer or sale of the securities in the United States or in any other jurisdiction where such offer or sale is prohibited, and such securities may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act of 1933, as amended.**

**EXHIBIT D**

Form of Officer's Certificate

**Officer's Certificate**

[●], 2023

I, Jairo Medina Perez, Chief Financial Officer of Merqueo Holdings, an Cayman Islands exempted company (the ***"Company"***), solely in such capacity and not in my individual capacity, do hereby certify that this certificate is being delivered by me pursuant to Section 7(g) of that certain Underwriting Agreement (the ***"Agreement"***; capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the Agreement), dated [●], 2023, by and between the Company and Aegis Capital Corp. and do hereby further certify on behalf of the Company that:

1. I have carefully reviewed the Registration Statement, the Pricing Disclosure Package, the Final Prospectus, each Issuer Free Writing Prospectus and each Written Testing-the-Waters Communication and, to my knowledge, the representations set forth in Sections 1(a)(ii), 1(b), 1(c)(i), 1(d)(i), 1(e)(i) 1(f)(i) and 1(i) of the Agreement are true and correct on and as of the Closing Date;

2. Except as otherwise disclosed in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus (in each case exclusive of any amendment or supplement thereto), since the date of the most recent financial statements included in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus there has been no material adverse change, or any development that could result in a material adverse change, in or affecting the condition (financial or otherwise), earnings, business, properties, management, financial position, stockholders' equity, or results of operations, whether or not arising from transactions in the ordinary course of business, of the Company;

3. The Company has timely performed the covenants and other obligations set forth in Section 7(a) of the Agreement.

4. All of the other representations and warranties of the Company in the Agreement are true and correct on and as of the Closing Date and the Company has complied in all material respects with all agreements and covenants and satisfied all other conditions on its part to be performed or satisfied thereunder at or prior to the Closing Date.

**[***Signature Page Follows***]**

**EXHIBIT e**

**Form of Underwriter's Warrant**

**39**

## Exhibit 4.2

**Exhibit 4.2**

THE REGISTERED HOLDER OF THIS PURCHASE WARRANT BY ITS ACCEPTANCE HEREOF, AGREES THAT IT WILL NOT SELL, TRANSFER OR ASSIGN THIS PURCHASE WARRANT EXCEPT AS HEREIN PROVIDED AND THE REGISTERED HOLDER OF THIS PURCHASE WARRANT AGREES THAT IT WILL NOT SELL, TRANSFER, ASSIGN, PLEDGE OR HYPOTHECATE THIS PURCHASE WARRANT FOR A PERIOD OF ONE HUNDRED EIGHTY DAYS FOLLOWING [●], 2023 (THE ***"EFFECTIVE DATE"***) TO ANYONE OTHER THAN (I) AEGIS CAPITAL CORP. OR A SELECTED DEALER IN CONNECTION WITH THE OFFERING FOR WHICH THIS PURCHASE WARRANT WAS ISSUED TO THE UNDERWRITER AS CONSIDERATION (THE ***"OFFERING"***), OR (II) A BONA FIDE OFFICER OR PARTNER OF AEGIS CAPITAL CORP.

THIS PURCHASE WARRANT IS NOT EXERCISABLE PRIOR TO [●], 2023. VOID AFTER 5:00 P.M., EASTERN TIME, [●], 2024.

**Ordinary Share Purchase Warrant**

**For the Purchase of [●] Ordinary Shares**

**of**

**MERQUEO HOLDINGS**

1. <u>Purchase Warrant</u>. THIS CERTIFIES THAT, in consideration of funds duly paid by or on behalf of Aegis Capital Corp. (***"Holder"***), as registered owner of this Purchase Warrant, to MERQUEO HOLDINGS, a Cayman Islands exempted company (the ***"Company"***), Holder is entitled, at any time or from time to time beginning [●], 2023 (the ***"Commencement Date"***), and at or before 5:00 p.m., Eastern time, on [●], 2024 (the ***"Expiration Date"***), but not thereafter in compliance with FINRA Rule 5110(g)(8)(A), to subscribe for, purchase and receive, in whole or in part, up to [●] ordinary shares of the Company, par value $0.0666 per share (the ***"Shares"***), subject to adjustment as provided in Section 6 hereof. If the Expiration Date is not a Business Day, then this Purchase Warrant may be exercised on the next succeeding Business Day. During the period ending on the Expiration Date, the Company agrees not to take any action that would terminate this Purchase Warrant. This Purchase Warrant is initially exercisable at $[●] per Share; <u>provided</u>, <u>however</u>, that upon the occurrence of any of the events specified in Section 6 hereof, the rights granted by this Purchase Warrant, including the exercise price per Share and the number of Shares to be received upon such exercise, shall be adjusted as therein specified. The term ***"Exercise Price"*** shall mean the initial exercise price or the adjusted exercise price, depending on the context, and the term "***Business Day***" shall mean a day other than a Saturday, Sunday or any other day which is a federal legal holiday in the United States or any day on which the Federal Reserve Bank of New York is authorized or required by law or other governmental action to close, provided that the Federal Reserve Bank of New York shall not be deemed to be authorized or obligated to be closed due to a "shelter in place," "non-essential employee" or similar closure of physical location at the direction of any governmental authority if the bank's electronic funds transfer systems (including for wire transfers) are open for use by customers on such day.

2. <u>Exercise</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Exercise Form</u>. In order to exercise this Purchase Warrant, the exercise form attached hereto must be duly executed and completed and delivered to the Company, together with this Purchase Warrant and, subject to Section 2.2, payment of the Exercise Price for the Shares being purchased payable in cash by wire transfer of immediately available funds to an account designated by the Company or by certified check or official bank check. If the subscription rights represented hereby shall not be exercised at or before 5:00 p.m., Eastern time, on the Expiration Date, this Purchase Warrant shall become and be void without further force or effect, and all rights represented hereby shall cease and expire. Each exercise hereof shall be irrevocable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>Cashless Exercise</u>. In lieu of exercising this Purchase Warrant by payment of cash or check payable to the order of the Company pursuant to Section 2.1 above, Holder may elect to receive the number of Shares equal to the value of this Purchase Warrant (or the portion thereof being exercised), by surrender of this Purchase Warrant to the Company, together with the exercise form attached hereto, in which event the Company will issue to Holder Shares in accordance with the following formula:

---

| | | | | |
|:---|:---|:---|:---|:---|
| X | = | Y(A-B) | Y(A-B) |  |
| X | = | A | A |  |
| Where, | Where, |  |  |  |
| | | X | = | The number of Shares to be issued to Holder; |
| | | Y | = | The number of Shares for which the Purchase Warrant is being exercised; |
| | | A | = | The fair market value of one Share; and |
| | | B | = | The Exercise Price. |

---

For purposes of this Section 2.2, the fair market value of a Share is defined as follows:

(i) if the Company's ordinary shares are traded on a national securities exchange, the OTCQB or OTCQX, the fair market value shall be deemed to be the closing price on such exchange, the OTCQB or OTCQX, as the case may be, on the Business Day immediately preceding the date that the exercise form is delivered pursuant to Section 8.4 in connection with the exercise of the Purchase Warrant; or

(ii) if the Company's ordinary shares are not then traded on a national securities exchange, the OTCQB or OTCQX and if prices for the Company's ordinary shares are then reported on the "Pink Sheets" published by OTC Markets Group, Inc., the fair market value shall be deemed to be the closing bid prior to the exercise form being submitted in connection with the exercise of the Purchase Warrant so reported; provided, however, if there is no active public market, the value shall be the fair market value thereof, as determined in good faith by the Company's Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 <u>Legend</u>. Each certificate for the securities purchased under this Purchase Warrant shall bear a legend as follows unless such securities have been registered under the Securities Act of 1933, as amended (the ***"Act"***):

**The securities represented by this certificate have not been registered under the Securities Act of 1933, as amended (the "Act"), or applicable state law. Neither the securities nor any interest therein may be offered for sale, sold or otherwise transferred except pursuant to an effective registration statement under the Act, or pursuant to an exemption from registration under the Act and applicable state law which, in the opinion of counsel to the Company, is available.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 <u>Resale of Shares</u>. Holder and the Company acknowledge that as of the date hereof the Staff of the Division of Corporation Finance of the SEC has published Compliance & Disclosure Interpretation 528.04 in the Securities Act Rules section thereof, stating that the holder of securities issued in connection with a public offering may not rely upon Rule 144 promulgated under the Act to establish an exemption from registration requirements under Section 4(a)(1) under the Act, but may nonetheless apply Rule 144 constructively for the resale of such shares in the following manner: (a) provided that six months has elapsed since the last sale under the registration statement, an underwriter or finder may resell the securities in accordance with the provisions of Rule 144(c), (e), and (f), except for the notice requirement; (b) a purchaser of the shares from an underwriter receives restricted securities unless the sale is made with an appropriate, current prospectus, or unless the sale is made pursuant to the conditions contained in (a) above; (c) a purchaser of the shares from an underwriter who receives restricted securities may include the underwriter's holding period, provided that the underwriter or finder is not an affiliate of the issuer; and (d) if an underwriter transfers the shares to its employees, the employees may tack the firm's holding period for purposes of Rule 144(d), but they must aggregate sales of the distributed shares with those of other employees, as well as those of the underwriter or finder, for a six-month period from the date of the transfer to the employees. Holder and the Company also acknowledge that the Staff of the Division of Corporation Finance of the SEC has advised in various no-action letters that the holding period associated with securities issued without registration to a service provider commences upon the completion of the services, which the Company agrees and acknowledges shall be the final closing of the Offering, and that Rule 144(d)(3)(ii) provides that securities acquired from the issuer solely in exchange for other securities of the same issuer shall be deemed to have been acquired at the same time as the securities surrendered for conversion (which the Company agrees is the date of the initial issuance of this Purchase Warrant). In the event that following a reasonably-timed written request by Holder to transfer the Shares in accordance with Compliance & Disclosure Interpretation 528.04 counsel for the Company in good faith concludes that Compliance & Disclosure Interpretation 528.04 no longer may be relied upon as a result of changes in applicable laws, regulations, or interpretations of the SEC Division of Corporation Finance, or as a result of judicial interpretations not known by the Company or its counsel on the date hereof (either, a ***"Registration Trigger Event"***), then the Company shall promptly, and in any event within five (5) Business Days following the request, provide written notice to Holder of such determination. As a condition to giving such notice, the parties shall negotiate in good faith a single demand registration right pursuant to an agreement in customary form reasonably acceptable to the parties; provided that notwithstanding anything to the contrary, the obligations of the Company pursuant to this Section 2 shall terminate on the fifth anniversary of the commencement of sales of the public offering. In the absence of such conclusion by counsel for the Company, the Company shall, upon such a request of Holder given no earlier than six months after the final closing of the Offering, instruct its transfer agent to permit the transfer of such shares in accordance with Compliance & Disclosure Interpretation 528.04, provided that Holder has provided such documentation as shall be reasonably be requested by the Company to establish compliance with the conditions of Compliance & Disclosure Interpretation 528.04. Notwithstanding anything to the contrary, pursuant to FINRA Rule 5110(g)(8)(A), the Holder shall not be entitled to more than one demand registration right hereunder and the duration of the registration rights hereunder shall not exceed five years from the commencement of sales of the public offering.

3. <u>Transfer</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>General Restrictions</u>. The registered Holder of this Purchase Warrant agrees by such Holder's acceptance hereof, that such Holder will not: (a) sell, transfer, assign, pledge or hypothecate this Purchase Warrant for a period of one hundred eighty (180) days following the Effective Date to anyone other than: (i) Holder or an underwriter, placement agent, or a selected dealer participating in the Offering, or (ii) a bona fide officer or partner of Holder or of any such underwriter, placement agent or selected dealer, in each case in accordance with FINRA Conduct Rule 5110(g)(1), or (b) for a period of one hundred eighty (180) days following the Effective Date cause this Purchase Warrant or the securities issuable hereunder to be the subject of any hedging, short sale, derivative, put or call transaction that would result in the effective economic disposition of this Purchase Warrant or the securities hereunder, except as provided for in FINRA Rule 5110(g)(2). After 180 days after the Effective Date, transfers to others may be made subject to compliance with or exemptions from applicable securities laws. In order to make any permitted assignment, the Holder must deliver to the Company the assignment form attached hereto duly executed and completed, together with the Purchase Warrant and payment of all transfer taxes, if any, payable in connection therewith. The Company shall within five (5) Business Days transfer this Purchase Warrant on the books of the Company and shall execute and deliver a new Purchase Warrant or Purchase Warrants of like tenor to the appropriate assignee(s) expressly evidencing the right to purchase the aggregate number of Shares purchasable hereunder or such portion of such number as shall be contemplated by any such assignment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>Restrictions Imposed by the Act</u>. The securities evidenced by this Purchase Warrant shall not be transferred unless and until: (i) if required by applicable law, the Company has received the opinion of counsel for the Company that the securities may be transferred pursuant to an exemption from registration under the Act and applicable state securities laws, or (ii) a registration statement or a post-effective amendment to the Registration Statement relating to the offer and sale of such securities has been filed by the Company and declared effective by the U.S. Securities and Exchange Commission (the ***"Commission"***) and compliance with applicable state securities law has been established.

4. <u>Piggyback Registration Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Grant of Right</u>. In the event that there is not an effective registration statement covering the Purchase Warrant or the underlying Shares, whenever the Company proposes to register any of its ordinary shares under the Act (other than (i) a registration effected solely to implement an employee benefit plan or a transaction to which Rule 145 of the Act is applicable, or (ii) a registration statement on Form S-4, S-8 or any successor form thereto or another form not available for registering the Shares issuable upon exercise of this Purchase Warrant for sale to the public, whether for its own account or for the account of one or more stockholders of the Company (a ***"Piggyback Registration"***), the Company shall give prompt written notice (in any event no later than ten (10) Business Days prior to the filing of such registration statement) to the Holder of the Company's intention to effect such a registration and, subject to the remaining provisions of this Section 4.1, shall include in such registration such number of Shares underlying this Purchase Warrant (the ***"Registrable Securities"***) that the Holders have (within ten (10) Business Days of the respective Holder's receipt of such notice) requested in writing (including such number) to be included within such registration. If a Piggyback Registration is an underwritten offering and the managing underwriter advises the Company that it has determined in good faith that marketing factors require a limit on the number of ordinary shares to be included in such registration, including all Shares issuable upon exercise of this Purchase Warrant (if the Holder has elected to include such shares in such Piggyback Registration) and all other ordinary shares proposed to be included in such underwritten offering, the Company shall include in such registration (i) first, the number of ordinary shares that the Company proposes to issue and sell pursuant to such underwritten offering and (ii) second, the number of ordinary shares, if any, requested to be included therein by selling stockholders (including the Holder) allocated pro rata among all such persons on the basis of the number of ordinary shares then owned by each such person. If any Piggyback Registration is initiated as a primary underwritten offering on behalf of the Company, the Company shall select the investment banking firm or firms to act as the managing underwriter or underwriters in connection with such offering. Notwithstanding anything to the contrary, the obligations of the Company pursuant to this Section 4.1 shall terminate on the earlier of (i) the fifth anniversary of the Effective Date and (ii) the date that Rule 144 would allow the Holder to sell its Registrable Securities during any ninety (90) day period, and shall not be applicable so long as the Company's Registration Statement on Form F-1 (No. 333-269027 covering the Registrable Securities remains effective at such time). The duration of the piggyback registration right shall not exceed seven years from the commencement of sales of the public offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Indemnification</u>. The Company shall indemnify the Holder(s) of the Registrable Securities to be sold pursuant to any registration statement hereunder and each person, if any, who controls such Holders within the meaning of Section 15 of the Act or Section 20 (a) of the Securities Exchange Act of 1934, as amended (***"Exchange Act"***), against all loss, claim, damage, expense or liability (including all reasonable attorneys' fees and other out-of-pocket expenses reasonably incurred in investigating, preparing or defending against any claim whatsoever) to which any of them may become subject under the Act, the Exchange Act or otherwise, arising from such registration statement but only to the same extent and with the same effect as the provisions pursuant to which the Company has agreed to indemnify Holder contained in the Underwriting Agreement between Holder and the Company, dated as of [●], 2023. The Holder(s) of the Registrable Securities to be sold pursuant to such registration statement, and their successors and assigns, shall severally, and not jointly, indemnify the Company, against all loss, claim, damage, expense or liability (including all reasonable attorneys' fees and other expenses reasonably incurred in investigating, preparing or defending against any claim whatsoever) to which they may become subject under the Act, the Exchange Act or otherwise, arising from information furnished by or on behalf of such Holders, or their successors or assigns, in writing, for specific inclusion in such registration statement to the same extent and with the same effect as the provisions contained in the Underwriting Agreement pursuant to which Holder has agreed to indemnify the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <u>Exercise of Purchase Warrants</u>. Nothing contained in this Purchase Warrant shall be construed as requiring the Holder(s) to exercise their Purchase Warrants prior to or after the initial filing of any registration statement or the effectiveness thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <u>Documents Delivered to Holders</u>. The Company shall deliver promptly to each Holder participating in the offering requesting the correspondence and memoranda described below, copies of all correspondence between the Commission and the Company, its counsel or auditors and all memoranda relating to discussions with the Commission or its staff with respect to the registration statement and permit each Holder and underwriter to do such investigation, upon reasonable advance notice, with respect to information contained in or omitted from the registration statement as it deems reasonably necessary to comply with applicable securities laws or rules of FINRA. Such investigation shall include access to books, records and properties and opportunities to discuss the business of the Company with its officers and independent auditors, all to such reasonable extent and at such reasonable times, during normal business hours, as any such Holder shall reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 <u>Underwriting Agreement</u>. The Holders shall be parties to any underwriting agreement relating to a Piggyback Registration. Such Holders shall not be required to make any representations or warranties to or agreements with the Company or the underwriters except as they may relate to such Holders, their Shares and the amount and nature of their ownership thereof and their intended methods of distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 <u>Documents to be Delivered by Holder(s)</u>. Each of the Holder(s) participating in any of the foregoing offerings shall furnish to the Company a completed and executed questionnaire provided by the Company requesting information customarily sought of selling security holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7 <u>Damages</u>. Should the Company fail to comply with such provisions, the Holder(s) shall, in addition to any other legal or other relief available to the Holder(s), be entitled to obtain specific performance or other equitable (including injunctive) relief against the threatened breach of such provisions or the continuation of any such breach, without the necessity of proving actual damages and without the necessity of posting bond or other security.

5. <u>New Purchase Warrants to be Issued</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Partial Exercise or Transfer</u>. Subject to the restrictions in Section 3 hereof, this Purchase Warrant may be exercised or assigned in whole or in part. In the event of the exercise or assignment hereof in part only, upon surrender of this Purchase Warrant for cancellation, together with the duly executed exercise or assignment form and funds sufficient to pay any Exercise Price and/or transfer tax if exercised pursuant to Section 2.1 hereto, the Company shall cause to be delivered to the Holder without charge a new Purchase Warrant of like tenor to this Purchase Warrant in the name of the Holder evidencing the right of the Holder to purchase the number of Shares purchasable hereunder as to which this Purchase Warrant has not been exercised or assigned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Lost Certificate</u>. Upon receipt by the Company of evidence satisfactory to it of the loss, theft, destruction or mutilation of this Purchase Warrant and of reasonably satisfactory indemnification or the posting of a bond, determined in the sole discretion of the Company, the Company shall execute and deliver a new Purchase Warrant of like tenor and date. Any such new Purchase Warrant executed and delivered as a result of such loss, theft, mutilation or destruction shall constitute a substitute contractual obligation on the part of the Company.

6. <u>Adjustments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 <u>Adjustments to Exercise Price and Number of Securities</u>. The Exercise Price and the number of Shares underlying the Purchase Warrant shall be subject to adjustment from time to time as hereinafter set forth:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.1 <u>Share Dividends; Split Ups.</u> If, after the date hereof, and subject to the provisions of Section 6.3 below, the number of outstanding Shares is increased by a stock dividend payable in Shares or by a split up of Shares or other similar event, then, on the effective day thereof, the number of Shares purchasable hereunder shall be increased in proportion to such increase in outstanding Shares, and the Exercise Price shall be proportionately decreased.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.2 <u>Aggregation of Shares</u>. If, after the date hereof, and subject to the provisions of Section 6.3 below, the number of outstanding Shares is decreased by a consolidation, combination or reclassification of Shares or other similar event, then, on the effective date thereof, the number of Shares purchasable hereunder shall be decreased in proportion to such decrease in outstanding Shares, and the Exercise Price shall be proportionately increased.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.3 <u>Replacement of Securities upon Reorganization, Etc.</u> In case of any reclassification or reorganization of the outstanding Shares other than a change covered by Section 6.1.1 or 6.1.2 hereof or that solely affects the par value of such Shares, or in the case of any share reconstruction or amalgamation or consolidation or merger of the Company with or into another corporation (other than a consolidation or share reconstruction or amalgamation or merger in which the Company is the continuing company and that does not result in any reclassification or reorganization of the outstanding Shares), or in the case of any sale or conveyance to another corporation or entity of the property of the Company as an entirety or substantially as an entirety in connection with which the Company is dissolved, the Holder of this Purchase Warrant shall have the right thereafter (until the expiration of the right of exercise of this Purchase Warrant) to receive upon the exercise hereof, for the same aggregate Exercise Price payable hereunder immediately prior to such event, the kind and amount of shares or other securities or property (including cash) receivable upon such reclassification, reorganization, share reconstruction or amalgamation, or consolidation, or upon a dissolution following any such sale or transfer, by a Holder of the number of Shares of the Company obtainable upon exercise of this Purchase Warrant immediately prior to such event; and if any reclassification also results in a change in Shares covered by Section 6.1.1 or 6.1.2, then such adjustment shall be made pursuant to Sections 6.1.1, 6.1.2 and this Section 6.1.3. The provisions of this Section 6.1.3 shall similarly apply to successive reclassifications, reorganizations, share reconstructions or amalgamations, or consolidations, sales or other transfers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.4 <u>Changes in Form of Purchase Warrant.</u> This form of Purchase Warrant need not be changed because of any change pursuant to this Section 6.1, and Purchase Warrants issued after such change may state the same Exercise Price and the same number of Shares as are stated in the Purchase Warrants initially issued pursuant to this Agreement. The acceptance by any Holder of the issuance of new Purchase Warrants reflecting a required or permissive change shall not be deemed to waive any rights to an adjustment occurring after the Commencement Date or the computation thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 <u>Substitute Purchase Warrant</u>. In case of any consolidation of the Company with, or share reconstruction or amalgamation or merger of the Company with or into, another corporation (other than a consolidation or share reconstruction or amalgamation or merger which does not result in any reclassification or change of the outstanding Shares), the corporation formed by such consolidation or share reconstruction or amalgamation shall execute and deliver to the Holder a supplemental Purchase Warrant providing that the holder of each Purchase Warrant then outstanding or to be outstanding shall have the right thereafter (until the stated expiration of such Purchase Warrant) to receive, upon exercise of such Purchase Warrant, the kind and amount of shares and other securities and property receivable upon such consolidation or share reconstruction or amalgamation, by a holder of the number of Shares of the Company for which such Purchase Warrant might have been exercised immediately prior to such consolidation, share reconstruction or amalgamation or merger, sale or transfer. Such supplemental Purchase Warrant shall provide for adjustments which shall be identical to the adjustments provided for in this Section 6. The above provision of this Section shall similarly apply to successive consolidations or share reconstructions or amalgamations or mergers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 <u>Elimination of Fractional Interests</u>. The Company shall not be required to issue certificates representing fractions of Shares upon the exercise of the Purchase Warrant, nor shall it be required to issue scrip or pay cash in lieu of any fractional interests, it being the intent of the parties that all fractional interests shall be eliminated by rounding any fraction up or down, as the case may be, to the nearest whole number of Shares or other securities, properties or rights.

7. <u>Reservation</u>. The Company shall at all times reserve and keep available out of its authorized Shares, solely for the purpose of issuance upon exercise of the Purchase Warrants, such number of Shares or other securities, properties or rights as shall be issuable upon the exercise thereof. The Company covenants and agrees that, upon exercise of the Purchase Warrants and payment of the Exercise Price therefor, in accordance with the terms hereby, all Shares and other securities issuable upon such exercise shall be duly and validly issued, fully paid and non-assessable and not subject to preemptive rights of any shareholder.

8. <u>Certain Notice Requirements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 <u>Holder's Right to Receive Notice</u>. Nothing herein shall be construed as conferring upon the Holder the right to vote or consent or to receive notice as a shareholder for the election of directors or any other matter, or as having any rights whatsoever as a shareholder of the Company. If, however, at any time prior to the expiration of the Purchase Warrants and their exercise, any of the events described in Section 8.2 shall occur, then, in one or more of said events, the Company shall deliver to each Holder a copy of each notice relating to such events given to the other shareholders of the Company at the same time and in the same manner that such notice is given to the shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 <u>Events Requiring Notice</u>. The Company shall be required to give the notice described in this Section 8 upon one or more of the following events: (i) if the Company shall take a record of the holders of its Shares for the purpose of entitling them to receive a dividend or distribution payable otherwise than in cash, or a cash dividend or distribution payable otherwise than out of retained earnings, as indicated by the accounting treatment of such dividend or distribution on the books of the Company, or (ii) the Company shall offer to all the holders of its Shares any additional shares of capital stock of the Company or securities convertible into or exchangeable for shares of capital stock of the Company, or any option, right or warrant to subscribe therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 <u>Notice of Change in Exercise Price</u>. The Company shall, within 3 Business Days after an event requiring a change in the Exercise Price pursuant to Section 6 hereof, send notice to the Holders of such event and change (***"Price Notice"***). The Price Notice shall describe the event causing the change and the method of calculating same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4 <u>Transmittal of Notices</u>. All notices, requests, consents and other communications under this Purchase Warrant shall be in writing and delivered personally, by e-mail, or sent by a nationally recognized overnight courier service to following addresses or to such other address as the Holder or the Company may designate by notice to the other party and shall be deemed given and effective on the earliest of (i) the time of transmission, if such notice or communication is delivered via e-mail (with confirmation of receipt from the intended recipient by return e-mail or other written acknowledgment) at the e-mail address set forth in this Section prior to 5:30 p.m. (New York City time) on any date, (ii) the next Business Day after the time of transmission, if such notice or communication is delivered via e-mail (with confirmation of receipt from the intended recipient by return email or other written acknowledgment) at the e-mail address set forth in this Section on a day that is not a Business Day or later than 5:30 p.m. (New York City time) on any Business Day, (iii) the second Business Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service, or (iv) upon actual receipt by the party to whom such notice is required to be given:

If to the Holder:

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Aegis Capital Corp., | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Aegis Capital Corp., |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1345 Avenue of the Americas, 27th Floor | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1345 Avenue of the Americas, 27th Floor |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New York, NY 10105 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New York, NY 10105 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Attention: Robert Eide | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Attention: Robert Eide |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E-mail: | reide@aegiscap.com |

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with a copy (which shall not constitute notice) to:

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Anthony W. Basch, Esq. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Anthony W. Basch, Esq. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Kaufman & Canoles, P.C. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Kaufman & Canoles, P.C. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1021 E. Cary Street, Suite 1400 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1021 E. Cary Street, Suite 1400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Two James Center | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Two James Center |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Richmond, VA 23219 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Richmond, VA 23219 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E-mail: | awbasch@kaufcan.com |

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If to the Company:

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MERQUEO HOLDINGS | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MERQUEO HOLDINGS |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Carrera 11 A # 93 – 52 Of. 501-502 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Carrera 11 A # 93 – 52 Of. 501-502 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bogotá, Colombia. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bogotá, Colombia. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Attention: Felipe Ossa Rodriguez, Chief Executive Officer | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Attention: Felipe Ossa Rodriguez, Chief Executive Officer |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E-mail: | fossa@merqueo.com |

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with a copy (which shall not constitute notice) to:

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cleary Gottlieb Steen & Hamilton LLP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cleary Gottlieb Steen & Hamilton LLP |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;One Liberty Plaza | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;One Liberty Plaza |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New York, New York 10006 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New York, New York 10006 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E-mail: | abrenneman@cgsh.com |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Attention: Adam J. Brenneman, Esq. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Attention: Adam J. Brenneman, Esq. |

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9. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 <u>Amendments</u>. The Company and Holder may from time to time supplement or amend this Purchase Warrant without the approval of any of the Holders in order to cure any ambiguity, to correct or supplement any provision contained herein that may be defective or inconsistent with any other provisions herein, or to make any other provisions in regard to matters or questions arising hereunder that the Company and Holder may deem necessary or desirable and that the Company and Holder deem shall not adversely affect the interest of the Holders. All other modifications or amendments shall require the written consent of and be signed by (i) the Company and (ii) the Holder(s) of Purchase Warrants then-exercisable for at least a majority of the Shares then-exercisable pursuant to all then-outstanding Purchase Warrants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 <u>Headings</u>. The headings contained herein are for the sole purpose of convenience of reference, and shall not in any way limit or affect the meaning or interpretation of any of the terms or provisions of this Purchase Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3. <u>Entire Agreement</u>. This Purchase Warrant (together with the other agreements and documents being delivered pursuant to or in connection with this Purchase Warrant) constitutes the entire agreement of the parties hereto with respect to the subject matter hereof, and supersedes all prior agreements and understandings of the parties, oral and written, with respect to the subject matter hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 <u>Binding Effect</u>. This Purchase Warrant shall inure solely to the benefit of and shall be binding upon, the Holder and the Company and their permitted assignees, respective successors, legal representative and assigns, and no other person shall have or be construed to have any legal or equitable right, remedy or claim under or in respect of or by virtue of this Purchase Warrant or any provisions herein contained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5 <u>Governing Law; Submission to Jurisdiction; Trial by Jury</u>. This Purchase Warrant shall be governed by and construed and enforced in accordance with the laws of the State of New York, without giving effect to conflict of laws principles thereof. The Company hereby agrees that any action, proceeding or claim against it arising out of, or relating in any way to this Purchase Warrant shall be brought and enforced in the courts located in the City of New York, County of New York, and State of New York, and irrevocably submits to such jurisdiction, which jurisdiction shall be exclusive. The Company hereby waives any objection to such exclusive jurisdiction and that such courts represent an inconvenient forum. Any process or summons to be served upon the Company may be served by transmitting a copy thereof by registered or certified mail, return receipt requested, postage prepaid, addressed to it at the address set forth in Section 8 hereof. Such mailing shall be deemed personal service and shall be legal and binding upon the Company in any action, proceeding or claim. The Company and the Holder agree that the prevailing party(ies) in any such action shall be entitled to recover from the other party(ies) all of its reasonable attorneys' fees and expenses relating to such action or proceeding and/or incurred in connection with the preparation therefor. The Company (on its behalf and, to the extent permitted by applicable law, on behalf of its stockholders and affiliates) and the Holder hereby irrevocably waive, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6 <u>Non-Waiver</u>. The failure of the Company or the Holder to at any time enforce any of the provisions of this Purchase Warrant shall not be deemed or construed to be a waiver of any such provision, nor to in any way affect the validity of this Purchase Warrant or any provision hereof or the right of the Company or any Holder to thereafter enforce each and every provision of this Purchase Warrant. No waiver of any breach, non-compliance or non-fulfillment of any of the provisions of this Purchase Warrant shall be effective unless set forth in a written instrument executed by the party or parties against whom or which enforcement of such waiver is sought; and no waiver of any such breach, non-compliance or non-fulfillment shall be construed or deemed to be a waiver of any other or subsequent breach, non-compliance or non-fulfillment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.7 <u>Exchange Agreement</u>. As a condition of the Holder's receipt and acceptance of this Purchase Warrant, Holder agrees that, at any time prior to the complete exercise of this Purchase Warrant by Holder, if the Company and Holder enter into an agreement (***"Exchange Agreement"***) pursuant to which they agree that all outstanding Purchase Warrants will be exchanged for securities or cash or a combination of both, then Holder shall agree to such exchange and become a party to the Exchange Agreement.

**[*Signature Page Follows*]**

IN WITNESS WHEREOF, the Company has caused this Purchase Warrant to be signed by its duly authorized officer as of the date first written above.

**MERQUEO HOLDINGS**

By:   <br> Name: Felipe Ossa Rodriguez <br> Title: Chief Executive Officer

[*Form to be used to exercise Purchase Warrant*]

Date: __________, 20___

The undersigned hereby elects irrevocably to exercise the Purchase Warrant for ______ ordinary shares, par value $0.0666 per share (the ***"Shares"***), of Merqueo Holdings, a Cayman Islands exempted company (the ***"Company"***), and hereby makes payment of $____ (at the rate of $____ per Share) in payment of the Exercise Price pursuant thereto. Please issue the Shares as to which this Purchase Warrant is exercised in accordance with the instructions given below and, if applicable, a new Purchase Warrant representing the number of Shares for which this Purchase Warrant has not been exercised.

or

The undersigned hereby elects irrevocably to convert its right to purchase ___ Shares of the Company under the Purchase Warrant for ______ Shares, as determined in accordance with the following formula:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | X | X | = | Y(A-B) |
| | X | X | = | A |
| Where, |  |  | | |
|  | X | = | The number of Shares to be issued to Holder; | The number of Shares to be issued to Holder; |
|  | Y | = | The number of Shares for which the Purchase Warrant is being exercised; | The number of Shares for which the Purchase Warrant is being exercised; |
|  | A | = | The fair market value of one Share which is equal to $_____; and | The fair market value of one Share which is equal to $_____; and |
|  | B | = | The Exercise Price which is equal to $______ per share | The Exercise Price which is equal to $______ per share |

---

The undersigned agrees and acknowledges that the calculation set forth above is subject to confirmation by the Company and any disagreement with respect to the calculation shall be resolved by the Company in its sole discretion.

Please issue the Shares as to which this Purchase Warrant is exercised in accordance with the instructions given below and, if applicable, a new Purchase Warrant representing the number of Shares for which this Purchase Warrant has not been converted.

Signature   <br> <br> Signature Guaranteed  

---

| |
|:---|
| INSTRUCTIONS FOR REGISTRATION OF SECURITIES |
| Name: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Print in Block Letters) |
| Address: |

---

NOTICE: The signature to this form must correspond with the name as written upon the face of the Purchase Warrant without alteration or enlargement or any change whatsoever, and must be guaranteed by a bank, other than a savings bank, or by a trust company or by a firm having membership on a registered national securities exchange.

[*Form to be used to assign Purchase Warrant*]

ASSIGNMENT

(To be executed by the registered Holder to effect a transfer of the within Purchase Warrant):

FOR VALUE RECEIVED, __________________ does hereby sell, assign and transfer unto the right to purchase ordinary shares, par value $0.0666 per share, of Merqueo Holdings, a Cayman Islands exempted company (the ***"Company"***), evidenced by the Purchase Warrant and does hereby authorize the Company to transfer such right on the books of the Company.

Dated: __________, 20__

Signature

Signature Guaranteed  

NOTICE: The signature to this form must correspond with the name as written upon the face of the within Purchase Warrant without alteration or enlargement or any change whatsoever, and must be guaranteed by a bank, other than a savings bank, or by a trust company or by a firm having membership on a registered national securities exchange.

## Exhibit 10.1

**Exhibit 10.1**

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY , HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL

<u>Execution Version</u>

<u>CONFIDENTIAL</u>

**LOAN AGREEMENT**

**Dated as of April 26, 2022**

**between**

**Merqueo S.A.S., as Borrower**

**and**

**Blue like an Orange Sustainable Capital - Latin America Holdings II S.A.R.L., as lender**

CONFIDENTIAL

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| ***ARTICLE 1 Definitions; Interpretation*** | ***ARTICLE 1 Definitions; Interpretation*** | ***1*** |
| Section 1.1 | Definitions | 1 |
| Section 1.2 | Interpretation | 1 |
| Section 1.3 | Business Day Adjustment | 2 |
| Section 1.4 | Financial Calculations | 2 |
| Section 1.5 | BlaO's Calculation or Determination Final | 2 |
| ***ARTICLE 2 Part 1: The BlaO Loan*** | ***ARTICLE 2 Part 1: The BlaO Loan*** | **2** |
| Section 2.1 | The BlaO Loan | 2 |
| Section 2.2 | Disbursement Procedure | 2 |
| Section 2.3 | Repayment | 3 |
| Section 2.4 | Voluntary and Mandatory Prepayments | 3 |
| Section 2.5 | Application of Prepayments | 5 |
| Section 2.6 | Currency and Place of Payment | 5 |
| Section 2.7 | Allocation of Partial Payments | 6 |
| Section 2.8 | Default Interest | 6 |
| Section 2.9 | Taxes | 6 |
| Section 2.10 | Suspension of Disbursements; Cancellation of BlaO Loan Commitment | 7 |
| Section 2.11 | Illegality | 7 |
| Section 2.12 | Payment of Fees, Costs and Expenses | 8 |
| Part 2: Interest Rate Terms and Conditions | Part 2: Interest Rate Terms and Conditions | **10** |
| Section 2.13 | BlaO Loan Interest | 10 |
| Section 2.14 | Additional Interest | 10 |
| Section 2.15 | Market Disruption | 11 |
| Section 2.16 | Benchmark Replacement Setting | 12 |
| Part 3: Promissory Notes | Part 3: Promissory Notes | **13** |
| Section 2.17 | Notes | 13 |
| ***ARTICLE 3 Representations and Warranties*** | ***ARTICLE 3 Representations and Warranties*** | **13** |
| Section 3.1 | Representations and Warranties | 13 |
| Section 3.2 | Acknowledgment and Warranty | 17 |
| ***ARTICLE 4 Conditions Precedent to Disbursement*** | ***ARTICLE 4 Conditions Precedent to Disbursement*** | **17** |
| Section 4.1 | Conditions Precedent to First Disbursement | 17 |
| Section 4.2 | Conditions Precedent to Second Disbursement | 18 |
| Section 4.3 | Conditions Precedent to All Disbursements | 19 |
| ***ARTICLE 5 Covenants*** | ***ARTICLE 5 Covenants*** | **20** |
| Section 5.1 | Affirmative Covenants | 20 |
| Section 5.2 | Negative Covenants | 24 |
| Section 5.3 | Information | 26 |
| Section 5.4 | Environmental and Social | 28 |
| ***ARTICLE 6 Events of Default*** | ***ARTICLE 6 Events of Default*** | **28** |
| Section 6.1 | Events of Default | 28 |
| Section 6.2 | Remedies | 30 |
| Section 6.3 | Bankruptcy | 30 |

---

- i -

BlaO Loan Agreement

CONFIDENTIAL

---

| | | |
|:---|:---|:---|
| ***ARTICLE 7 Miscellaneous*** | ***ARTICLE 7 Miscellaneous*** | **31** |
| Section 7.1 | Notices | 31 |
| Section 7.2 | English Language | 31 |
| Section 7.3 | Indemnity; Waiver of Consequential Damages | 32 |
| Section 7.4 | Successors and Assigns | 32 |
| Section 7.5 | Counterparts | 33 |
| Section 7.6 | Confidential Information | 33 |
| Section 7.7 | Amendment | 33 |
| Section 7.8 | Savings of Rights; Remedies; No Waiver | 33 |
| Section 7.9 | Severability | 34 |
| Section 7.10 | Applicable Law and Jurisdiction | 34 |
| Section 7.11 | Set-Off | 36 |
| Section 7.12 | Entire Agreement | 36 |
| Section 7.13 | No Third-Party Beneficiary | 36 |
| Section 7.14 | Survival | 36 |
| Section 7.15 | Term of Agreement | 36 |

---

**<u>ANNEXES, SCHEDULES AND EXHIBITS</u>**

**<u>ANNEXES</u>**

ANNEX 1: DEFINITIONS <br> ANNEX 2: ENVIRONMENTAL AND SOCIAL PROVISIONS

**<u>SCHEDULES</u>**

---

| | |
|:---|:---|
| SCHEDULE 1: | MEMBER COUNTRIES OF IDB INVEST |
| SCHEDULE 2: | LIST OF EXCLUDED ACTIVITIES |
| SCHEDULE 3: | IMPACT & SUSTAINABILITY INDICATORS |
| SCHEDULE 3.1.4 | RELEVANT AUTHORIZATIONS APPLICABLE FOR MERQUEO BRAZIL AND MERQUEO MEXICO |
| SCHEDULE 4: | PERMITTED LIENS |
| SCHEDULE 5: | WAREHOUSE LEASES |
| SCHEDULE 6: | BORROWER'S SHARE CAPITAL |
| SCHEDULE 7: | KEY PERFORMANCE INDICATORS |
| SCHEDULE 8: | CORPORATE GOVERNANCE ACTION PLAN |

---

**<u>EXHIBITS</u>**

---

| | |
|:---|:---|
| EXHIBIT 1: | FORM OF DISBURSEMENT REQUEST |
| EXHIBIT 2: | FORM OF BORROWER'S CERTIFICATE REGARDING ORGANIZATIONAL DOCUMENTS/CORPORATE RESOLUTIONS |
| EXHIBIT 3: | FORM OF BORROWER'S SERVICE OF PROCESS LETTER |
| EXHIBIT 4: | FORM OF AUTHORIZATION TO AUDITOR |
| EXHIBIT 5: | FORM OF BORROWER'S CERTIFICATE OF INCUMBENCY AND AUTHORITY |
| EXHIBIT 6: | FORM OF BORROWER'S QUARTERLY CERTIFICATE |
| EXHIBIT 7: | FINANCIAL RATIOS COMPLIANCE CERTIFICATE |
| EXHIBIT 8: | FORM OF BORROWER'S LEGAL OPINION |

---

- ii -

BlaO Loan Agreement

CONFIDENTIAL

**LOAN AGREEMENT** (together with all Annexes, Schedules and Exhibits hereto, this "**Agreement**") dated as of April 26, 2022 (the "**Effective Date**"), between:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) **MERQUEO S.A.S.**, a simplified stock corporation organized and existing under the laws of the Republic
 of Colombia (the "**Borrower** "); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) **BLUE LIKE AN ORANGE SUSTAINABLE CAPITAL - LATIN AMERICA HOLDINGS II S.A.R.L.**, a Luxembourg *société à responsabilité limitée* ()"**BlaO** "),
 as lender of the BlaO Loan (as defined below).

**ARTICLE 1**

**Definitions; Interpretation**

**Section 1.1 Definitions.**

Capitalized terms used herein have the meanings provided in <u>Annex 1</u> (*Definitions*)*.*

 

**Section 1.2 Interpretation.**

In this Agreement, unless the context otherwise requires:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) headings are for convenience only and do not affect its interpretation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) singular terms include the plural and vice versa, and each gender includes all genders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a reference to an Article, Section, paragraph, Schedule, Exhibit or Annex is a reference to that Article, Section or paragraph of, Schedule, Exhibit or Annex to, this Agreement, unless otherwise specified;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) a reference to a document includes any amendment or supplement to, or replacement, novation or modification of, that document unless made in breach of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the term "including" means "including without limitation";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the terms "herein," "hereof" and "hereunder" refer to this Agreement as a whole;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) phrases such as "satisfactory to BlaO", "approved by BlaO", "acceptable to BlaO", "as BlaO determines", "selected by BlaO" and phrases of similar import, authorize BlaO to act and/or make the relevant determination in its sole discretion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) phrases such as "as BlaO may reasonably require" or "as BlaO may reasonably request" and phrases of similar import authorize and permit BlaO to act or decline to act in its reasonable discretion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) references to "knowledge," "know" and "known" shall mean knowledge after due inquiry and references to such terms in respect of the Borrower shall be deemed to include the knowledge of the Founders; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) in the computation of periods of time from a specified date to a later specified date, the word "from" means "from and including" and the words "to" and "until" mean "to but excluding".

BlaO Loan Agreement

CONFIDENTIAL

**Section 1.3 Business Day Adjustment.**

If a payment is due on a date that is not a Business Day, such payment shall instead be due on the next succeeding Business Day. Interest, fees and charges (if any) thereon shall continue to accrue until the date such payment is made.

**Section 1.4 Financial Calculations.**

All financial calculations to be made for the purposes of this Agreement or any other Financing Document shall be determined in accordance with the Accounting Principles and, except as otherwise required by this Agreement, shall be based on the Borrower's most recently issued quarterly Financial Statements furnished to BlaO under Section 5.3.2 (*Unaudited Quarterly Financial Statements*); *provided however*, that where financial calculations would otherwise be based on Financial Statements from the last quarter of a Financial Year, then, at BlaO's option, those calculations will instead be based on the audited Financial Statements for the relevant Financial Year.

**Section 1.5 BlaO's Calculation or Determination Final.**

Any calculation or determination by BlaO of any amount pursuant to this Agreement, including the Interest Rate, the Additional Interest, any other fees, Costs and compliance with any Financial Covenants, shall be final and conclusive and bind the Borrower unless the determination involved manifest error. BlaO's internal records regarding payments made on account of the Obligations shall be conclusive and bind the Borrower unless the determination involved manifest error; *provided,* that the failure of BlaO to maintain such accounts or any error therein shall not affect the Borrower's obligation to repay the BlaO Loan in accordance with this Agreement. BlaO shall not have any liability of any nature whatsoever as a result of any determination made by BlaO being proved to involve any error.

**ARTICLE 2**

**Part 1: The BlaO Loan**

**Section 2.1 The BlaO Loan.**

2.1.1 Subject to the terms and conditions of this Agreement, BlaO agrees to lend to the Borrower, and the Borrower agrees to borrow from BlaO, a loan (the "**BlaO Loan"**) in an aggregate principal amount of eighteen million Dollars ($18,000,000) (such commitment, the "**BlaO Loan Commitment**").

2.1.2 The BlaO Loan shall rank *pari passu* with the IDB Invest Loan.

**Section 2.2 Disbursement Procedure.**

2.2.1 The Borrower may request Disbursements by delivering to BlaO at least ten (10) Business Days prior to each proposed Disbursement Date: (i) an irrevocable Disbursement Request, appropriately completed and duly executed by an Authorized Representative of the Borrower and (ii) all documents required to be delivered as a condition precedent to such Disbursement pursuant to Article 4 (*Conditions Precedent to Disbursement*) (other than any document that is required to be delivered only as of the relevant Disbursement Date).

2.2.2 All Disbursements (other than Disbursements of the Interest Reserve Amount) shall be made in Dollars to the Disbursement Account for further credit to the bank account of the Borrower in the Borrower's Country or any other place acceptable to BlaO. Other than Disbursements of the Interest Reserve Amount which shall be made in accordance with Section 2.2.4 below, the Borrower shall not be permitted to request more than one (1) Disbursement per month or more than an aggregate of four (4) Disbursements. The first Disbursement shall be made in a whole Dollar amount of at least eight million Dollars ($8,000,000).

BlaO Loan Agreement

CONFIDENTIAL

2.2.3 Notwithstanding any other provision of this Agreement, no Disbursement shall be made where a related transfer of funds would violate any Applicable Law or the AML/CFT policies, procedures or controls of BlaO or any financial institution that is involved in the transfer of funds.

2.2.4 *Interest Reserve*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Notwithstanding anything to the contrary in this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) during
 the period commencing on the first Disbursement Date and ending on the first (1st) anniversary
 thereof (the "**Interest Reserve Period** "), two million Dollars ($2,000,000)
 of the BlaO Loan Commitment (the "**Interest Reserve Amount**") shall not
 be available for Disbursement to the Borrower but instead shall be used to pay interest amounts
 owing on the BlaO Loan in accordance with this Section 2.2.4; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) during
 the Interest Reserve Period, BlaO may, at its sole discretion but with notice to the Borrower,
 make a Disbursement of all or a portion of the funds in the Interest Reserve Amount directly
 to itself in order to pay any amount of interest payable in respect of the BlaO Loan on any
 Interest Payment Date (or any other date on which interest becomes payable hereunder, in
 connection with a Mandatory Prepayment Event, an Event of Default or otherwise). For the
 avoidance of doubt, any such Disbursement shall be added to then-outstanding amount of the
 principal of the BlaO Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) After the expiration of the Interest Reserve Period, the Borrower may request a Disbursement of the balance of the Interest Reserve Amount in accordance with Section 2.2.1 (*Disbursement Procedure*).

**Section 2.3 Repayment.**

2.3.1 The Borrower shall repay the BlaO Loan in Dollars in equal semi-annual installments of principal on each Interest Payment Date commencing on the First Repayment Date and ending on the Loan Final Maturity Date, on which date the entire remaining outstanding principal amount of the BlaO Loan shall be due and payable in full.

2.3.2 Principal amounts repaid or prepaid may not be re-borrowed.

**Section 2.4 Voluntary and Mandatory Prepayments.**

2.4.1 *Voluntary Prepayments*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) After the third anniversary of the Effective Date, the Borrower may prepay all or any portion of the BlaO Loan on any Interest Payment Date, upon at least thirty (30) days' prior irrevocable written notice to BlaO, together with the fees, interest and Costs provided in Section 2.4.3 (*Prepayment Fees and Costs*).

BlaO Loan Agreement

CONFIDENTIAL

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Borrower may only make a total of two prepayments of the BlaO Loan under this Section 2.4, (a) the first of which shall be in an amount equal to fifty percent (50%) of the then-outstanding principal balance of the BlaO Loan and (b) the second of which shall be in an amount equal to the remaining principal balance of the BlaO Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Borrower shall deliver to BlaO, prior to the date of prepayment, either (a) evidence satisfactory to BlaO that any Authorizations necessary for the prepayment have been obtained or (b) a certification that no such Authorizations are required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Notwithstanding anything to the contrary in this Section 2.4.1, after the third (3rd) anniversary of the Effective Date, the Borrower shall not be permitted to make a voluntary prepayment of the BlaO Loan under this Section 2.4.1, unless the Borrower provides evidence satisfactory to BlaO that the Borrower is making a simultaneous and *pro-rated* prepayment of the IDB Invest Loan in accordance with the terms of the IDB Invest Loan Agreement.

2.4.2 *Mandatory Prepayments*. Upon the occurrence of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Except in the case of a SPAC Transaction, a Change of Control without BlaO's prior written consent, and in connection therewith BlaO shall grant or reject any request for such consent within thirty (30) days of the Borrower providing all relevant information reasonably requested by BlaO; *provided*, that any failure by BlaO to respond to any such consent request shall be deemed to be a rejection by BlaO; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) an Unauthorized Share Transaction (each, a "**Mandatory Prepayment Event**"),

(a) the Borrower shall prepay all Obligations, including amounts payable with respect to such prepayment pursuant to Section 2.4.3 (*Prepayment Fees and Costs*), (b) the BlaO Loan Commitment and the Borrower's right to request any Disbursements shall be terminated, and (c) BlaO may exercise any remedies that may be available to BlaO under any Financing Document or Applicable Law. Any prepayment required by this Section 2.4.2 shall be due and payable no later than ten (10) days following the occurrence of the relevant Mandatory Prepayment Event.

2.4.3 *Prepayment Fees and Costs*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Prepayment Fees*. With each prepayment of the BlaO Loan pursuant to Section 2.4.1 (*Voluntary Prepayments*), Section 2.4.2 (*Mandatory Prepayments*) or otherwise, the Borrower shall concurrently pay a prepayment fee in Dollars which, when added to the principal amount being prepaid *plus* all previous installments of principal prepaid or repaid *plus* all payments of interest, Additional Interest and fees paid to BlaO in respect of such principal amounts (or deemed allocated to such principal amounts in accordance with the last sentence of this Section 2.4.3(i)), would yield an amount equal to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a
 twenty-two percent (22%) IRR on the BlaO Loan (or, in the case of a partial prepayment, the
 amount of principal amount being prepaid *plus* all previous installments of principal
 prepaid or repaid), if such prepayment is made on or after the third (3rd) anniversary of
 the Effective Date and prior to the fourth (4th) anniversary of the Effective Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a
 twenty-one percent (21%) IRR on the BlaO Loan (or, in the case of a partial prepayment, the
 amount of principal amount being prepaid *plus* all previous installments of principal
 prepaid or repaid), if such prepayment is made on or after the fourth (4th) anniversary of
 the Effective Date and prior to the fifth (5th) anniversary of the Effective Date; or

BlaO Loan Agreement

CONFIDENTIAL

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a
 twenty percent (20%) IRR on the BlaO Loan (or, in the case of a partial prepayment, the amount
 of principal amount being prepaid *plus* all previous installments of principal prepaid
 or repaid), if such prepayment is made on or after the fifth (5th) anniversary of the Effective
 Date;

*provided*, that if a Mandatory Prepayment Event occurs before the third (3rd) anniversary of the Effective Date, the prepayment fee shall instead be an amount which would yield a twenty-two percent (22%) IRR assuming a three (3)-year time period; *provided further*, that in the case of a Mandatory Prepayment Event under Section 2.4.2(i) where (1) the Borrower requested BlaO's consent to carry out a Change of Control in connection with the listing of its or its parent company's Share Capital on a U.S. securities exchange registered with the U.S. Securities and Exchange Commission, (2) the Borrower provided to BlaO all relevant information reasonably requested by it, and (3) BlaO rejected such consent request in respect of the proposed Change of Control, such prepayment fee shall instead be an amount which would yield a sixteen percent (16%) IRR assuming a three (3)-year time period.

For the avoidance of doubt, the prepayment fee under this Section 2.4.3(i) shall not apply to a prepayment made pursuant to Section 2.11 (*Illegality*). For purposes of any IRR calculation for any prepayment fee in the case of a partial prepayment of the BlaO Loan: (x) all amounts of Additional Interest and fees previously paid to BlaO hereunder shall be deemed to have been allocated to the principal amount prepaid and all previous installments of principal prepaid or repaid *pro rata*, on the basis of the percentage of the aggregate principal amount of the BlaO Loan represented by the relevant prepayment and all previous installments of principal prepaid or repaid; and (y) the amount prepaid shall be deemed to be comprised of the earliest Disbursement(s) of the BlaO Loan made hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *Interest and Costs*. On the date of each prepayment of the BlaO Loan (including, for the avoidance of doubt, any prepayment made pursuant to Section 2.11 (*Illegality*)), the Borrower shall concurrently pay: (a) all accrued and unpaid interest on, and any Increased Costs incurred in connection with, the BlaO Loan; (b) any Costs then due pursuant to Section 2.12.4 (*Other Costs*); and (c) any other Obligations then due and payable.

**Section 2.5 Application of Prepayments.**

Amounts of principal prepaid under Section 2.4 (*Voluntary and Mandatory Prepayments*) shall be applied by BlaO to the outstanding installments of principal of the BlaO Loan in inverse order of maturity.

**Section 2.6 Currency and Place of Payment.**

2.6.1 Payments of all Obligations shall be made in Dollars, in immediately available funds, to BlaO at:

Intermediary Bank Name:

Intermediary Bank SWIFT:

Account Number (IBAN):

Beneficiary Bank Name:

Beneficiary Bank SWIFT:

Beneficiary Name:

Beneficiary Account Number:

BlaO Loan Agreement

CONFIDENTIAL

or to such other account as BlaO may instruct (in either case, the "**Receipt Account**") by no later than 11:00 a.m. New York City time, or at such other bank or banks, in such place or places, as BlaO may designate. BlaO may deem any payment received after that time to have been made on the next Business Day.

2.6.2 The payment obligations of the Borrower under this Agreement shall be discharged only to the extent that (and as of the date when) Dollars are received in the Receipt Account, notwithstanding the tender or payment (including by way of recovery under a judgment) of any amount in any currency other than Dollars. Accordingly, the Borrower shall pay such additional amount as is necessary to enable BlaO to receive, after conversion to Dollars, and transfer to the Receipt Account, the full amount due to BlaO under this Agreement. Notwithstanding the foregoing and Section 2.6.1, BlaO may require the Borrower to pay (or to reimburse BlaO) in any currency other than Dollars for (i) any Taxes or other amounts payable under Section 2.9 (*Taxes*) and (ii) any fees or Costs payable under Section 2.12 (*Payment of Fees, Costs and Expenses*), in each case to the extent such amounts are payable in such other currency.

**Section 2.7 Allocation of Partial Payments.**

If BlaO at any time receives less than the full amount then due in respect of the Obligations, such amount shall be allocated in the following order, any: (i) Costs; (ii) fees; (iii) default interest; (iv) ordinary interest;

(v) Additional Interest; and (vi) principal of the BlaO Loan.

**Section 2.8 Default Interest.**

Without limiting the remedies available to BlaO under this Agreement or otherwise and in addition to any amounts owing pursuant to Section 2.13 (*BlaO Loan Interest*), if the Borrower fails to pay any Obligation (including interest payable pursuant to this Section 2.8) when due (whether at maturity or upon acceleration), then the Borrower shall pay default interest on the unpaid amount (i) in the case of overdue principal, at a rate equal to two percent (2.0%) per annum, (ii) in the case of overdue interest or Additional Interest on the BlaO Loan, at a rate equal to the sum of two percent (2.0%) per annum *plus* the Interest Rate, and (iii) for all other overdue Obligations, at a rate of ten percent (10%) per annum. Interest at such rates shall accrue from the date an Obligation is due until the date paid and shall be due and payable on the earlier of the date of demand by BlaO and the next Interest Payment Date. Should such default interest exceed the maximum allowed by Applicable Law, the maximum interest rate allowed by Applicable Law shall apply.

**Section 2.9 Taxes.**

2.9.1 The Borrower shall timely pay or cause to be paid (i) all Taxes and other liabilities of whatsoever nature arising in connection with the payment of any Obligation that are imposed by any Authority of the Borrower's Country or of any other jurisdiction from or through which any such payment is made (other than any Taxes on net income) (all such Taxes and other liabilities, collectively, "**Transaction Taxes**") and (ii) all stamp, recording, documentary or similar taxes and all other charges or levies payable on or in connection with the execution, delivery, registration, consularization, translation, notarization or enforcement of this Agreement or any other Financing Document (collectively, "**Other Taxes**").

2.9.2 All payments by the Borrower under this Agreement or under any other Financing Document shall be made free and clear of, and without deduction or withholding for, any Transaction Taxes or Other Taxes. If the Borrower is required by Applicable Law or otherwise to deduct or withhold any Transaction Taxes from any such payment, then (i) the amount payable by the Borrower shall be increased as necessary so that, after making any such required deductions (including deductions applicable to additional amounts payable under this Section 2.9), BlaO receives the full amount it would have received had no such deduction or withholding been required, and (ii) the Borrower shall make such deduction or withholding and shall pay the full amount deducted or withheld to the relevant Authority in accordance with Applicable Law.

BlaO Loan Agreement

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**Section 2.10 Suspension of Disbursements; Cancellation of BlaO Loan Commitment.**

2.10.1 If (i) any Mandatory Prepayment Event has occurred or any Event of Default has occurred and is continuing, (ii) the Borrower's Country ceases to be an IDB Invest Member, or (iii) the maximum aggregate number of Disbursements permitted pursuant to Section 2.2.2 (*Disbursement Procedure*) has been achieved, then, by notice to the Borrower, BlaO may cancel all or any portion of the undisbursed amount of the BlaO Loan Commitment or suspend the Borrower's right to request further Disbursements (for such period and on such conditions as BlaO determines).

2.10.2 If the circumstance described in Section 2.11 (*Illegality*) arises, the BlaO Loan Commitment shall be cancelled as set forth in such Section; *provided*, that the amount of the affected BlaO Loan Commitment to be cancelled shall be determined by BlaO. If any amount of the BlaO Loan Commitment is not disbursed as of the Commitment Termination Date, such amount shall be automatically cancelled.

2.10.3 Upon cancellation of the BlaO Loan Commitment pursuant to Sections 2.10.1 or Section 2.10.2, the Borrower shall pay to BlaO, no later than (i) five (5) Business Days after the occurrence of such cancellation if the cancellation is in full or (ii) the next Interest Payment Date if such cancellation is a partial cancellation, all fees, Costs and other Obligations (other than outstanding principal of, and interest and Additional Interest not then due on, the BlaO Loan) accrued through the date of full payment of all such amounts, whether or not such amounts were otherwise due and payable.

2.10.4 The Borrower may, by notice to BlaO and upon payment of all fees, Costs and any other Obligations (other than outstanding principal of, and interest and Additional Interest not then due on, the BlaO Loan) accrued through such date, irrevocably request BlaO to cancel all or any portion of the undisbursed amount of the BlaO Loan Commitment (excluding the Interest Reserve Amount during the Interest Reserve Period) in the amount and on the date specified in such notice; *provided*, that such date is at least five (5) Business Days (i) after the date of the notice or (ii) prior to the next succeeding Interest Payment Date; and *provided further,* that such payment is made by the Borrower (a) fifteen (15) Business Days after the date of the notice or (b) on the next succeeding Interest Payment Date, as applicable. BlaO shall, upon receipt of such notice and payment, by notice to the Borrower, cancel such requested portion of the BlaO Loan Commitment effective as of the date specified in the Borrower's notice; *provided*, that the obligation of BlaO to cancel such requested portion of the BlaO Loan Commitment shall be subject to the condition that Borrower provide evidence satisfactory to BlaO that the Borrower is making a simultaneous request to make a *pro rata* cancellation of the commitment for the IDB Invest Loan in accordance with the terms of the IDB Invest Loan Agreement.

2.10.5 The Commitment Fee shall continue to accrue and be payable during any suspension of the Borrower's right to request Disbursements pursuant to this Section 2.10 (unless such suspension is a result of the circumstance described in clause (ii) of Section 2.10.1) but, as of the effective date of any cancellation of the BlaO Loan Commitment, shall cease to accrue with respect to the amount cancelled.

2.10.6 Any cancelled portion of the BlaO Loan Commitment shall not be reinstated or disbursed.

**Section 2.11 Illegality.**

If any Change in Law makes it unlawful for BlaO to fund or maintain the BlaO Loan or any portion thereof, the Borrower's right to request a Disbursement of the undisbursed portion of the BlaO Loan Commitment affected by the Change in Law shall terminate, and the Borrower shall, within five (5) Business Days of receipt of notice thereof from BlaO (together with any default interest, losses or any other additional costs incurred by BlaO until such prepayment is made in full), prepay in full the BlaO Loan, including all interest and costs provided in Section 2.4.3(ii) (*Interest and Costs*). No prepayment fee shall be payable in respect of any prepayment pursuant to this Section 2.11 as well as any accrued but unpaid Additional Interest.

BlaO Loan Agreement

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**Section 2.12 Payment of Fees, Costs and Expenses.**

2.12.1 *Fees*. The Borrower shall pay to BlaO:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a commitment fee (the "**Commitment Fee**") equal to two and one half percent (2.5%) per annum of the undisbursed and uncancelled portion of the BlaO Loan Commitment (excluding the Interest Reserve Amount), which shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) begin to
 accrue daily, in respect of the BlaO Loan Commitment on the earlier of (1) ninety (90) days
 after the Effective Date and (2) the first Disbursement date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) be
 calculated on the basis of a three hundred and sixty (360)-day year for the actual number
 of days elapsed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) be
 payable in arrears on the Interest Payment Dates in each year, except that the first such
 payment shall be due on the first Interest Payment Date occurring after the date on which
 the Commitment Fee begins to accrue;

*provided,* that, if any Disbursement is made fewer than ten (10) Business Days before an Interest Payment Date, then such Disbursement shall be disregarded for the purposes of calculating the Commitment Fee due on such Interest Payment Date and any excess Commitment Fee paid by the Borrower on such Interest Payment Date shall be credited to the Borrower on the next Interest Payment Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) on the second (2nd) anniversary of the Effective Date, a one-time payment-in-kind fee equal to two percent (2.0%) per annum of the principal amount of the BlaO Loan outstanding as of such date (the "**PIK Fee**"); *provided*, that the PIK Fee shall not be payable if, after the first Disbursement Date hereunder and prior to the second (2nd) anniversary of the Effective Date, the Borrower has received cash proceeds of at least fifty million Dollars ($50,000,000) as a result of a bona fide equity financing transaction or a series of such transactions with the principal purpose of raising capital pursuant to the issuance and sale of the Borrower's Share Capital; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in accordance with the Fee Letters of BlaO: (a) a front end fee calculated based on the aggregate amount of the BlaO Loan Commitment; (b) a waiver and amendment fee; (c) an annual supervision fee; and (d) such other fees, to be agreed upon, if applicable, between BlaO and the Borrower after the Effective Date, in each case as agreed in writing by BlaO and the Borrower.

2.12.2 *Expenses*. The Borrower shall pay to BlaO, or as BlaO may direct the out-of-pocket expenses (including travel and subsistence expenses, if applicable) of BlaO and all fees and expenses of BlaO's legal counsels incurred in connection with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the preparation, review, negotiation, execution, implementation and, where appropriate, translation, registration and notarization of the Financing Documents and any other related documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the registration (where applicable) and the delivery of the evidence of indebtedness relating to the BlaO Loan and the Disbursements;

BlaO Loan Agreement

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) BlaO's efforts to preserve, enforce or protect its rights under any Financing Document or upon the exercise of its rights or powers arising out of the occurrence of any Default, including any related legal and other professional consultants' fees and expenses on a full indemnity basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the giving of any legal opinions BlaO requires under this Agreement and any other Financing Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any amendment of, supplement or modification to, or waiver under, any Financing Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the occurrence of any Default or Mandatory Prepayment Event; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) the release of any Security following repayment in full of the BlaO Loan.

2.12.3 *Increased Costs*. On each Interest Payment Date the Borrower shall pay, in addition to any other amounts then due, the amount that BlaO from time to time notifies to the Borrower as being the Increased Costs accrued and unpaid prior to such Interest Payment Date.

*2.12.4 Other Costs*

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Borrower shall pay to BlaO the amount of any Costs notified by BlaO to the Borrower as incurred by BlaO pursuant to any Financing Document, including in connection with the cancellation of all or any portion of the BlaO Loan Commitment as provided in Section 2.10.1 (*Suspension of Disbursements; Cancellation of BlaO Loan Commitment*), any Disbursement Request delivered hereunder (regardless of whether the disbursement is finally made or not), or as a result of the Borrower: (a) failing to (1) pay any Obligation on the due date thereof, (2) borrow in accordance with any Disbursement Request, or (3) make any prepayment pursuant to Section 2.4.1 (*Voluntary Prepayments*) in accordance with a notice of prepayment or when due pursuant to Section 2.4.2 (*Mandatory Prepayments*); or (b) repaying any amount of the BlaO Loan on a date other than an Interest Payment Date (including as a result of an Event of Default). Payment of amounts due under this Section 2.12.4 shall be made by the Borrower within five (5) Business Days of receipt of notice thereof (together with any default interest, losses or any other additional costs incurred by BlaO during such five (5) Business Day period).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If the Borrower repays any amount of the BlaO Loan on a date other than an Interest Payment Date, then the Costs incurred by BlaO shall include, and the Borrower shall pay to BlaO, in addition to any other amounts payable by the Borrower under clause (i) of this Section 2.12.4, the amount determined by BlaO as the difference, if any, between (a) the amount of interest that would have accrued on the principal amount of the BlaO Loan had such repayment not occurred at the Interest Rate then applicable to such Loan for the remainder of the Interest Period during which the relevant repayment is made, and (b) the amount of interest that BlaO would earn on such repaid principal amount for the remainder of such Interest Period if such principal amount were invested for such remaining period at the interest rate that would be bid to BlaO from prime banks in the New York interbank market at the time such repayment occurs.

BlaO Loan Agreement

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**Part 2: Interest Rate Terms and Conditions Section**

**2.13 BlaO Loan Interest.**

2.13.1 *General Provisions*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Borrower shall pay interest on the outstanding principal amount of the BlaO Loan in accordance with this Section 2.13.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Interest on the BlaO Loan shall accrue daily for each Interest Period from the first (1st) day of such Interest Period to, the last day of such Interest Period, computed on the basis of the actual number of days elapsed in such Interest Period in a year of three hundred and sixty (360) days and shall be payable in arrears on the Interest Payment Date falling on such last day; *provided,* that the first (1st) payment of interest on any Disbursement made fewer than ten (10) Business Days before an Interest Payment Date shall be made on the second (2nd) Interest Payment Date following the date of that Disbursement.

2.13.2 *Interest Rate*. The following terms shall apply the BlaO Loan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) During each Interest Period, the BlaO Loan shall bear interest at the Interest Rate for that Interest Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The variable interest rate applicable to each Disbursement of the BlaO Loan for each Interest Period shall be the sum of (a) Applicable Term SOFR on the Interest Rate Determination Date for that Interest Period, *plus* (b) the Applicable Spread.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) On each Interest Rate Determination Date, BlaO shall determine the Interest Rate applicable to the corresponding Interest Period and BlaO shall promptly notify the Borrower of such rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Notwithstanding anything to the contrary in this Agreement, on each Interest Rate Determination Date on which any amount of the IDB Invest Loan remains outstanding, BlaO shall use, for the Interest Rate applicable to each Disbursement of the BlaO Loan, the variable interest rate calculated by IDB Invest for the corresponding disbursements and Interest Periods of the IDB Invest Loan under the IDB Invest Loan Agreement, unless such calculation involves manifest error.

**Section 2.14 Additional Interest.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) As additional compensation to BlaO for making the BlaO Loan available to the Borrower, the Borrower shall make payments to BlaO in an aggregate amount equal to three and twenty-seven one hundredths percent (3.27%) of the Adjusted EBITDA for each Financial Year or portion thereof (the "**Additional Interest**"), as set forth in this Section 2.14.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Additional Interest payments shall be calculated by BlaO as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for
 each Additional Interest Calculation Period ending on June 30th, the amount of Additional
 Interest payable shall be calculated by BlaO on the basis of the Adjusted EBITDA for the
 six (6)-month period ending on such Financial Quarter Date on the basis of the unaudited
 quarterly Financial Statements delivered to BlaO for the relevant Financial Quarters under
 Section 5.3.2 (*Unaudited Quarterly Financial Statements*); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) for
 each Additional Interest Calculation Period ending on December 31st, the amount of Additional
 Interest payable shall be calculated by BlaO on the basis of the Adjusted EBITDA for the
 Financial Year ending on such date on the basis of the audited annual Financial Statements
 delivered to BlaO for such Financial Year under Section 5.3.1(ii) (*Audited Annual Financial Statements*);

BlaO Loan Agreement

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*provided*, that if the Borrower fails to deliver such quarterly or annual Financial Statements when and as required by Sections 5.3.1(ii) and 5.3.2, BlaO may calculate the Additional Interest based on such information as is available to it, but the Borrower and BlaO agree that the amount of such payment shall thereafter be subject to adjustment if the final calculation of Additional Interest based on the annual Financial Statements is different.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The amount of Additional Interest shall be payable as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for
 the Additional Interest Calculation Period ending on June 30, the Borrower shall pay to BlaO
 an amount equal to the Additional Interest calculated under Section 2.14(ii)(a) for such
 Additional Interest Calculation Period on the following October 15; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) for
 the Additional Interest Calculation Period ending on December 31, the Borrower shall pay
 to BlaO an amount equal to the Additional Interest for such Additional Interest Calculation
 Period on April 15 of the succeeding Financial Year; *provided*, that from such payment
 there shall be subtracted the Additional Interest amount paid by the Borrower pursuant to
 paragraph (a) above in respect of the first half of the relevant Financial Year;

*provided*, *however*, that in each case, if the Additional Interest payment calculated by BlaO for any Additional Interest Calculation Period is negative, the Additional Interest payment shall be equal to zero.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Notwithstanding anything to the contrary above in this Section 2.14, Additional Interest shall accrue at the conclusion of each Additional Interest Calculation Period during which any amount of principal of the BlaO Loan remains outstanding (whether or not such principal amount was outstanding for all or only a portion of the relevant Additional Interest Calculation Period).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Subject to the proviso of clause (ii) and the preceding clause (iv), all calculations of the Additional Interest made by BlaO from time to time shall be binding absent manifest error.

**Section 2.15 Market Disruption.**

2.15.1 If BlaO determines that for any Interest Period, Applicable Term SOFR (i) will not adequately reflect the cost of making, funding or maintaining the BlaO Loan or (ii) subject to Section 2.16 (*Benchmark Replacement Setting*), cannot be determined by BlaO pursuant to the definition thereof (each of the foregoing, a "**Market Disruption Event**"), then the Market Disruption Base Rate, as notified by BlaO to the Borrower, shall apply to the BlaO Loan for each Interest Period in place of Applicable Term SOFR. Any Market Disruption Base Rate applied pursuant to this Section 2.15.1 shall cease to be used in place of Applicable Term SOFR (a) for any Interest Period that begins after BlaO notifies the Borrower that the Market Disruption Event no longer exists or (b) if an agreement is reached between BlaO and the Borrower during the Rate Setting Period, as described in Section 2.15.2(ii).

2.15.2 (i) Upon the occurrence of a Market Disruption Event where Applicable Term SOFR will not adequately reflect the cost of making, funding or maintaining the BlaO Loan, BlaO may elect to apply Applicable Term SOFR to determine the weighted average cost of funds of BlaO when calculating the interest rate for the BlaO Loan.

BlaO Loan Agreement

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(ii) Notwithstanding the foregoing, upon the occurrence of a Market Disruption Event, at the Borrower's written request (received by BlaO within five (5) Business Days of the Borrower having been notified by BlaO of such Market Disruption Event), (a) BlaO and the Borrower shall enter into good faith negotiations for a period of not more than thirty (30) days (the "**Rate Setting Period**") to determine a substitute base rate of interest applicable to the BlaO Loan; (b) any alternative rate agreed to by BlaO and the Borrower during the Rate Setting Period shall apply retroactively from the first day of the affected Interest Period; and (c) if no agreement is reached between BlaO and the Borrower during the Rate Setting Period, the Borrower may prepay the relevant portion of the BlaO Loan no later than five (5) Business Days following the expiration of the Rate Setting Period. Any such prepayment shall be made together with all interest and costs provided in Section 2.4.3(ii) (*Prepayment Fees and Costs*).

2.15.3 Notwithstanding anything to the contrary in this Agreement, if (i) a Market Disruption Event occurs at a time when any amount of the IDB Invest Loan remains outstanding and (ii) IDB Invest determines that a market disruption event has also occurred in respect of the IDB Invest Loan, then BlaO shall use the Market Disruption Base Rate calculated by IDB Invest under the IDB Invest Loan Agreement for the corresponding Interest Period of the IDB Invest Loan, unless such calculation involves manifest error.

**Section 2.16 Benchmark Replacement Setting.**

2.16.1 *Benchmark Replacement*. Notwithstanding anything to the contrary herein or in any other Financing Document, upon the occurrence of a Benchmark Transition Event, BlaO may amend this Agreement and any other Financing Document to replace the then-current Benchmark with a Benchmark Replacement. Any such amendment will become effective on the fifth (5th) Business Day in New York after BlaO has sent a notice of such proposed amendment to the Borrower or such later date as BlaO may specify in such notice, without any further action or consent of the Borrower.

2.16.2 *Benchmark Replacement Conforming Changes*. In connection with the use, administration, adoption or implementation of a Benchmark Replacement, BlaO will have the right to make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Financing Document, any amendments implementing such Benchmark Replacement Conforming Changes will become effective upon notice to, but without any further action or consent of the Borrower.

2.16.3 *Notices; Standards for Decisions and Determinations.* BlaO will promptly notify the Borrower of (i) the implementation of any Benchmark Replacement and (ii) the effectiveness of any Benchmark Replacement Conforming Changes. Any determination, decision or election that may be made by BlaO pursuant to this Section 2.16, including any determination with respect to a tenor, rate or adjustment or the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action, will be conclusive and binding absent manifest error and may be made in BlaO's sole discretion. In connection with the implementation of any Benchmark Replacement and at the request of BlaO, the Borrower shall promptly provide an amendment to or replacement of any affected Note.

2.16.4 *Determinations while the IDB Invest Loan is Outstanding*. Notwithstanding anything to the contrary in this Agreement, if a Benchmark Transition Event occurs while any amount of the IDB Invest Loan remains outstanding, for the purposes of this Section 2.16, BlaO shall use the (i) Benchmark Replacement, (ii) the Benchmark Replacement Adjustment, and (iii) the Benchmark Replacement Conforming Changes determined by IDB Invest under the IDB Invest Loan Agreement, unless such determination involves manifest error.

BlaO Loan Agreement

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**Part 3: Promissory Notes**

**Section 2.17 Notes.**

2.17.1 *Initial Notes*. To further evidence its obligation to repay the BlaO Loan, and to pay accrued interest, the Borrower shall issue and deliver to BlaO, on or prior to the first Disbursement Date (i) a partially completed promissory note with the principal amount blank and (ii) an instruction letter, each in form and substance acceptable to BlaO (collectively, the "**Notes**"). At BlaO's request from time to time, the Borrower shall promptly execute and deliver one or more new Notes satisfactory to BlaO to substitute for one or more Notes previously delivered hereunder. Upon the receipt of such executed replacement Notes, BlaO shall promptly return to the Borrower the original Notes so replaced or an affidavit of loss or destruction in customary form. The issuance, execution and delivery of any Note pursuant to this Agreement shall not be construed as a novation hereunder or under any other agreement between BlaO and the Borrower and shall not affect the obligations or rights of the Borrower hereunder, and the rights and claims of BlaO under any Note shall not replace or supersede its rights and claims hereunder.

2.17.2 *Replacement Notes*. At the time of the last Disbursement of the BlaO Loan, or upon BlaO's request thereafter, the Borrower shall deliver to BlaO a Note in the total amount of all Disbursements of the BlaO Loan (including the amount of such last Disbursement) to be due and payable on the Loan Final Maturity Date; *provided,* that if the Borrower has made any payments of principal pursuant to Section 2.3 (*Repayment*), then the Note shall be for the total amount remaining due under the BlaO Loan after such payment(s) of principal have been made, as calculated by BlaO and notified to the Borrower.

**ARTICLE 3**

**Representations and Warranties**

**Section 3.1 Representations and Warranties**.

The Borrower represents and warrants in respect of itself and each of the Guarantors that:

3.1.1 *Organization; Power; Due Authorization*. It is, duly organized and validly existing and (if applicable) in good standing under the Applicable Law of its jurisdiction of organization and is authorized to do business in such jurisdiction and each other jurisdiction where the character of its Property or the nature of its activities makes such authorization necessary. It has all requisite corporate or other organizational power and authority: (i) to own its Property, (ii) to conduct its business as currently conducted, and (iii) to enter into, and to comply with its obligations under, each Financing Document to which it is or will be a party.

3.1.2 *Enforceability*. This Agreement and the other Financing Document to which it is a party are, or when duly executed and delivered, will be (i) duly authorized and executed by it and constitute its valid and legally binding obligation, enforceable in accordance with its terms and (ii) in proper legal form for the enforcement thereof under the Applicable Law of its jurisdiction of organization and, if this Agreement were stated to be governed by such law, it would constitute its legal, valid, and binding obligation under such law.

3.1.3 *No Violation*. Neither its execution and delivery of any Financing Document to which it is a party nor its compliance with the terms thereof will: (i) contravene any Applicable Law or Relevant Authorization; (ii) result in any breach of, or constitute a default or require any consent under, any agreement or other arrangement to which it is a party, by which it is bound or to which it may be subject;

(iii) result in the creation or imposition of (or an obligation to create or impose) any Lien upon any of its Property; (iv) violate the terms of its organizational documents.

BlaO Loan Agreement

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3.1.4 *Relevant Authorizations*. Except as disclosed in Schedule 3.1.4: (i) it has all Relevant Authorizations to conduct its business and to enter into, and to comply with its obligations under, each Financing Document to which it is or will be a party; (ii) each such Relevant Authorization has been validly issued and obtained and is in full force and effect; (iii) no Relevant Authorization is the subject of an appeal or judicial or other review by any Authority; (iv) it is in compliance with each Relevant Authorization; and (v) it has no reason to believe that any Relevant Authorization that requires renewal will not be renewed as and when required under Applicable Law without the imposition of additional restrictions or conditions or that any Relevant Authorization will be withdrawn, suspended, cancelled, varied, surrendered or revoked.

3.1.5 *Compliance with Applicable Laws*. It is in compliance with Applicable Law.

3.1.6 *No Default*. No Default has occurred and is continuing.

3.1.7 *Litigation*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No Action is pending (or, to its knowledge, threatened) against it or any of its Affiliates that has had or could reasonably be expected, by itself or together with any other Action, to have a Material Adverse Effect; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) no judgment, order or award has been issued that has had, or could reasonably be expected by itself or together with any other judgment, order or award or pending Action against it or any of its Affiliates to have, a Material Adverse Effect.

3.1.8 *Financial Statements*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The unaudited Financial Statements for the annual period ending on December 31, 2021, the unaudited Financial Statements for the Financial Quarter ending on December 31, 2021, and the audited Financial Statements for the annual period ending on December 31, 2020 delivered to BlaO were prepared from and are in accordance with its books and records and give a true and fair view of its financial position, including disclosure of all of its liabilities (contingent or otherwise) as of the date thereof and the results of its operations and cash flow for the period covered thereby, all in conformity with the Accounting Principles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) It has not undertaken or agreed to undertake any material obligation not shown in its Financial Statements most recently delivered to BlaO other than its obligations under the Financing Document or, if applicable, its obligations under the SPAC Transaction documents.

3.1.9 *No Material Adverse Effect*. Since December 31, 2020, no condition has existed, or event has occurred that has had or could reasonably be expected to have a Material Adverse Effect.

3.1.10 *Ownership of Property; Liens; Intellectual Property*. It has good, legal, and valid title to (or a valid leasehold interest in) all its Property (including all Intellectual Property required in connection with its business), and with respect to the Secured Property, free of all Liens other than Permitted Liens.

3.1.11 *Environmental and Social Compliance*. Each representation made in Section 2 (*E&S Representations and Warranties*) of <u>Annex 2</u> (*Environmental and Social Provisions*) is true and correct.

3.1.12 *Absence of Prohibited Practices; Sanctions Lists*. Neither it nor any of its Affiliates nor any Person acting on its or their behalf (i) has committed or engaged in any Prohibited Practice in connection with any Financing Document or any transaction contemplated by the Financing Documents or (ii) is included on any Internationally Recognized Sanctions Lists or on the IDB Group List of Sanctioned Firms and Individuals.

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3.1.13 *Legal Form; Enforceability.* Subject to the immediately following sentence, this Agreement and the other Financing Documents to which it is a party are, or when duly executed and delivered will be, in proper legal form for the enforcement thereof under the Applicable Law of its jurisdiction of organization. Each Note when delivered constitutes a *título ejecutivo* under the Applicable Laws of the Borrower's Country. All formalities required in its jurisdiction of organization for the validity and enforceability of this Agreement and the other Financing Documents (including any necessary translation, notarization, consularization, apostille or legalization, registration, recording or filing with any court, registry or other Authority in its jurisdiction of organization) have been or will be accomplished prior to the first Disbursement Date other than a translation of this Agreement into Spanish, prepared by an official translator.

3.1.14 *Ranking of Obligations.* Its obligations under the Financing Documents to which it is a party to pay the principal of and interest on the BlaO Loan and any and all other amounts due thereunder constitute its senior, direct and unconditional unsubordinated obligations and will at all times rank at least equal in right of payment with all of its other present and future unsubordinated indebtedness and other obligations of the Borrower.

3.1.15 *Availability and Transfer of Foreign Currency.* Other than the registration of the BlaO Loan with the Colombian Central Bank (*Banco de la República*) which will be satisfied by (a) filing Form No. 6 (*Información de Endeudamiento Externo otorgado a Residentes*) prior to, or simultaneously with, the first Disbursement and (b) Form No. 3 (*Declaración de Cambio*) prior to, or simultaneously with, each Disbursement, each with an authorized foreign exchange intermediary, no foreign exchange control approvals or other Authorizations are required to ensure the availability of Dollars to enable it to perform all of its obligations under the Financing Documents to which it is a party. No other restriction or requirement limits the availability to, or transfer of foreign exchange by, it to make any payments required under any Financing Document to which it is a party.

3.1.16 *Absence of Insolvency Event*. No Insolvency Event has occurred and is continuing or, to its knowledge, has been threatened against it, and it has not taken any action that will result in an Insolvency Event.

3.1.17 *Choice of Law; Consent to Jurisdiction*. Under the Applicable Law of its jurisdiction of organization, the choice of the law of New York to govern this Agreement and the other Financing Documents which are subject to New York law is valid and binding. Its consent to the jurisdiction of the courts provided in Section 7.10.2 (*Applicable Law and Jurisdiction*) is valid, binding and irrevocable, and service of process effected in the manner provided in Sections 7.10.4 and 7.10.6 will be effective to confer personal jurisdiction over it in such courts.

3.1.18 *No Immunity*. Neither it nor any of its Property has any immunity from execution or set-off with respect to its assets, or suit with respect to its obligations under this Agreement, the Notes or any other Financing Document.

3.1.19 *Provision of Information, Etc*. All written information provided by it to BlaO was, on the date provided, and continues to be, true and accurate in all material respects and not misleading in any material respect nor is any information omitted from such information that makes the information provided misleading in any material respect (except to the extent that it has provided to BlaO written updates or amendments to such previously furnished information reflecting changes in circumstance subsequent to the provision of such information).

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3.1.20 *Taxes*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (a) All of its Tax Returns that are required by Applicable Law to be filed have been duly filed; (b) all Taxes due and payable by it, or upon its Property, income or assets, which are due and payable or required to be deducted or withheld, have been paid or deducted or withheld and properly paid to the appropriate Authority, except for Taxes being diligently contested in god faith through the appropriate proceedings, with respect to which reserves have been established.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Except as otherwise disclosed in the Financial Statements referred to in Section 3.1.8 (*Financial Statements*), it has not received notice of (a) any pending audits, examinations, investigations, proceedings or claims with respect to any Taxes or (b) any Lien with respect to Taxes that has been filed against any of its Property, nor to its knowledge, in either case, has any such action been threatened.

3.1.21 *Affiliate Transactions*. As of the Effective Date, there have been no Affiliate Transactions except those carried out in the ordinary course of business and at arm's-length.

3.1.22 *Status of Security*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Security Documents create, or when executed and duly registered will create, valid and enforceable first priority Liens (or other interests or rights of the kind purported to be created thereby) over all of the Secured Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) It has not received any notice of any adverse claim by any Person in respect of its ownership of, or entitlement to, the Secured Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Secured Property is not, and will not at any time be, subject to any Lien other than pursuant to the Security Documents.

3.1.23 *Borrower's Share Capital.* The Share Capital of the Borrower consists solely of the number of shares and classes of capital stock set forth in <u>Schedule 6</u> (*Borrower's Share Capital*), all of which are held beneficially and of record by the Persons listed in <u>Schedule 6</u> (*Borrower's Share Capital*). No other Person holds any Share Capital of, or any Equity Rights in respect of, the Borrower.

3.1.24 *Subsidiaries*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Merqueo Brazil, Merqueo International, and Merqueo Mexico are the only direct or indirect Subsidiaries of the Borrower as of the Effective Date and the Borrower (and, if applicable, Merqueo International) holds the following (a) number of fully paid and non-assessable shares of each of its Subsidiaries and (b) percentage ownership in each class of capital stock of each of its Subsidiaries:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) *Merqueo Brazil.* 

 

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| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**Shareholder** | &nbsp;&nbsp;&nbsp;&nbsp;**Type of Share** | &nbsp;&nbsp;&nbsp;&nbsp;**Number of Shares** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Participation** |
| &nbsp;&nbsp;The Borrower | &nbsp;&nbsp;&nbsp;&nbsp;Common | &nbsp;&nbsp;&nbsp;&nbsp;77516554 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;99% |
| &nbsp;&nbsp;Merqueo International | &nbsp;&nbsp;&nbsp;&nbsp;Common | &nbsp;&nbsp;&nbsp;&nbsp;9900 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1% |
| &nbsp;&nbsp;**Total** |  | &nbsp;&nbsp;&nbsp;&nbsp;**77526454** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**100%** |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) *Merqueo International.* 

 

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**Shareholder** | &nbsp;&nbsp;&nbsp;&nbsp;**Type of Share** | &nbsp;&nbsp;&nbsp;&nbsp;**Number of Shares** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Participation** |
| &nbsp;&nbsp;The Borrower | &nbsp;&nbsp;&nbsp;&nbsp;Common | &nbsp;&nbsp;&nbsp;&nbsp;1000000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;100% |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) *Merqueo Mexico.* 

 

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**Shareholder** | &nbsp;&nbsp;&nbsp;&nbsp;**Type of Share** | &nbsp;&nbsp;&nbsp;&nbsp;**Number of Shares** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Participation** |
| &nbsp;&nbsp;The Borrower | &nbsp;&nbsp;&nbsp;&nbsp;Common | &nbsp;&nbsp;&nbsp;&nbsp;246331597 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;98.47% |
| &nbsp;&nbsp;Merqueo International | &nbsp;&nbsp;&nbsp;&nbsp;Common | &nbsp;&nbsp;&nbsp;&nbsp;3839117 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.53% |
| &nbsp;&nbsp;**Total** |  | &nbsp;&nbsp;&nbsp;&nbsp;**250170714** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**100%** |

---

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Borrower (and, if applicable, Merqueo International) has good, legal, and valid title to all of its Subsidiaries' shares, free of all Liens other than Permitted Liens.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Other than its direct or indirect ownership of Merqueo Brazil, Merqueo International, and Merqueo Mexico and any Subsidiaries formed after the Effective Date in accordance with Section 5.2.14 (*Negative Covenants*), neither the Borrower nor any of its Subsidiaries holds, directly or indirectly, any Share Capital or Equity Rights of any other Person.

3.1.25 *No Omissions*. No representation or warranty in this Article 3 (*Representations and Warranties*) omits any matter the omission of which makes such representation or warranty misleading.

**Section 3.2 Acknowledgment and Warranty.**

The Borrower acknowledges that it makes the representations and warranties contained in Section 3.1 (*Representations and Warranties*) with the intention of inducing BlaO to enter into this Agreement and the other Financing Documents and that BlaO has entered into this Agreement and the other Financing Documents on the basis of, and in full reliance upon, each such representations and warranties.

**ARTICLE 4**

**Conditions Precedent to Disbursement** 

**Section 4.1 Conditions Precedent to First Disbursement**.

The first Disbursement is subject to the fulfillment in form and substance, and in a manner, satisfactory to BlaO, not later than three (3) Business Days prior to the applicable Disbursement Date of the following conditions; *provided,* that any condition that is specified to be required to be met on the Disbursement Date shall be satisfied on or before the Disbursement Date as a condition to the making of the Disbursement to be made on such date:

4.1.1 *Organizational Documents; Corporate Resolutions; Incumbency*. BlaO has received a certificate from the Borrower substantially in the form of <u>Exhibit 2</u> (*Form of Borrower's Certificate Regarding Organizational Documents/Corporate Resolutions*) signed by an Authorized Representative of the Borrower and each Guarantor and dated as of the date of the relevant Disbursement Request and attaching all required documents.

4.1.2 *Environmental and Social*. The conditions in Section 3 (*E&S Conditions Precedent to First Disbursement*) of <u>Annex 2</u> (*Environmental and Social Provisions*) have been satisfied.

4.1.3 *Legal Opinions*. BlaO has received a legal opinion dated as of the first Disbursement Date and addressed to each Senior Lender from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Borrower's in-house legal counsel, substantially in the form attached as <u>Exhibit 8</u> (*Form of Borrower's Legal Opinion*);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Gómez-Pinzón Abogados S.A.S., the Borrower's Country counsel to the Senior Lenders, in form and substance acceptable to BlaO;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Becker, Glynn, Muffly, Chassin & Hosinski LLP, New York counsel to the Senior Lenders, in form and substance acceptable to BlaO;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Barbosa, Müssnich e Aragão Advogados, Brazil counsel to the Senior Lenders, in form and substance acceptable to BlaO (but which shall not cover the enforceability of the Guarantee Agreement); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Mijares Angoitia Cortés y Fuente, S.C., Mexico counsel to the Senior Lenders, in form and substance acceptable to BlaO (but which shall not cover the enforceability of the Guarantee Agreement).

4.1.4 *Financial Statements.* BlaO has received the Financial Statements referred to in Section 3.1.8(i) (*Financial Statements*).

4.1.5 *Financing Documents*. Each Financing Document (other than any Financing Document to be entered into by IDB Invest) has been duly authorized and executed and delivered by all parties thereto and is in full force and effect in accordance with its terms, and all formalities required in the Borrower's Country for the validity and enforceability of this Agreement and the other Financing Documents (including any necessary translation (sworn or otherwise), notarization, consularization, apostille or legalization, registration, recording or filing with any court, registry or other Authority in the Borrower's Country) have been or will be accomplished prior to the first Disbursement Date.

4.1.6 *IDB Invest Board Approval.* The Board of Executive Directors of IDB Invest has approved the IDB Invest Loan.

4.1.7 *Security*. The Security has been duly created and perfected; the Security Documents have been duly executed and, if required, have been registered in the appropriate public registry, creating valid and enforceable first priority Liens over the Secured Property, and the Secured Property shall be satisfactory in form and substance to BlaO.

4.1.8 *Process Agent*. BlaO has received (i) a letter substantially in the form of <u>Exhibit 3</u> (*Form of Borrower's Service of Process Letter*) relating to the appointment by the Borrower and each Guarantor of an agent for service of process acceptable to BlaO and (ii) in respect of Merqueo Mexico only, a notarial power of attorney for acts of administration to such Process Agent (in form and substance satisfactory to BlaO), together with evidence of such Process Agent's unconditional acceptance of such appointment and power of attorney to act as such until the date that is six (6) months after the Loan Final Maturity Date.

4.1.9 *Authorization to Auditor*. BlaO has received a copy of the authorization to the Auditor, substantially in the form of <u>Exhibit 4</u> (*Form of Authorization to Auditor*), signed by an Authorized Representative of the Borrower and countersigned by the Auditor (to the extent such Auditor is willing to countersign the same, after the Borrower has made commercially reasonable efforts to request such countersignature).

**Section 4.2 Conditions Precedent to Second Disbursement.**

The second Disbursement is subject to the fulfillment in form and substance, and in a manner, satisfactory to BlaO, not later than three (3) Business Days prior to the applicable Disbursement Date of the following conditions; provided, that any condition that is specified to be required to be met on the Disbursement Date shall be satisfied on or before the Disbursement Date as a condition to the making of the Disbursement to be made on such date:

4.2.1 *Intercreditor Agreement.* BlaO and IDB Invest have entered into the Intercreditor Agreement, which has become unconditional and fully effective.

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4.2.2 *IDB Invest Loan Disbursement*. Each Financing Document to be entered into by IDB Invest have been duly authorized and executed and delivered by all parties thereto and is in full force and effect in accordance with its terms, and the Borrower has simultaneously requested a disbursement of the IDB Invest Loan under the IDB Invest Loan Agreement.

4.2.3 *Series C+ Investment; Note Conversion*. (i) The investment in the Series C+ Preferred Shares of the Borrower under the Subscription Agreement among the Borrower, IDCV MERQUEO FUEL K/S and the other parties thereto dated as of October 25, 2021 has been consummated in all material respects in accordance with its terms, with aggregate proceeds received by the Borrower equal to at least thirty-six million two hundred fifty thousand Dollars ($36,250,000); and (ii) the Borrower does not have any convertible instruments outstanding.

4.2.4 *Certain Corporate Matters*. (i) Merqueo Brazil and Merqueo Mexico have concluded their respective capitalization processes and, if requested by BlaO, it has received satisfactory evidence thereof; and (ii) the organizational documents of Merqueo Mexico have been amended, in form and substance satisfactory to BlaO, in order to permit Merqueo Mexico to enter into the Guarantee Agreement and the IDB Invest Guarantee Agreement.

**Section 4.3 Conditions Precedent to All Disbursements.**

All Disbursements (including, except where otherwise stated, the first and second Disbursement) are subject to the fulfillment in form and substance, and in a manner, satisfactory to BlaO, not later than three (3) Business Days prior to the applicable Disbursement Date of the following conditions; *provided*, that any condition that is specified to be required to be met on the Disbursement Date shall be satisfied on or before the Disbursement Date:

4.3.1 *Disbursement Request.* BlaO has received a Disbursement Request with respect to such Disbursement in accordance with Section 2.2 (*Disbursement Procedure*) certifying as to the intended use of proceeds, which shall comply with Section 5.1.1 (*Use of Proceeds*) and the satisfaction of all applicable conditions to Disbursement.

4.3.2 *No Default.* No Default exists or will occur as a result of the making of such Disbursement.

4.3.3 *Representations and Warranties.* All representations and warranties made by the Borrower in Article 3 (*Representations and Warranties*) are true and correct with reference to the facts and circumstances existing on the date of the applicable Disbursement Request and on the applicable Disbursement Date, with the same effect as if made on each such date, after giving effect to the proposed Disbursement to be made on such date; *provided*, that references to Financial Statements shall be deemed to refer to the most recent Financial Statements delivered to BlaO as of such date; *provided further*, that references to the Subsidiaries under Section 3.1.24 (*Subsidiaries*) shall be deemed to include any existing Subsidiaries formed after the Effective Date in compliance with Section 5.1.14 (*Subsidiaries*).

4.3.4 *Fees and Expenses*. The Borrower has paid: (i) all fees due prior to or as of the relevant Disbursement Date pursuant to any Fee Letter or other Financing Document, and BlaO has been reimbursed for all Costs, (ii) all fees and expenses of BlaO's legal counsels, and (iii) any other fees and expenses required by any Financing Document to be reimbursed by the relevant Disbursement Date, or the Borrower has made arrangements satisfactory to BlaO that such payments will be made.

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4.3.5 *Subsequent Legal Opinions.* If BlaO requests, BlaO has received in form and substance acceptable to BlaO a legal opinion or opinions from counsel acceptable to BlaO covering such matters as BlaO may reasonably require.

4.3.6 *Material Adverse Effect.* Since the Effective Date, nothing has occurred that has had or could reasonably be expected to have a Material Adverse Effect.

4.3.7 *Environmental and Social.* All conditions set forth in Section 4 (*E&S Conditions Precedent to All Disbursements*) of <u>Annex 2</u> (*Environmental and Social Provisions*) have been satisfied*.*

 

4.3.8 *Financial Covenants*. The Borrower shall be in compliance with Section 5.1.13 (*Financial Covenants*) after taking into account the amount of the Disbursement to be made and any other Debt incurred by the Borrower and any capital contribution made after the date of the latest Financial Statements provided pursuant to Section 5.3.1 (*Audited Annual Financial Statements*) or Section 5.3.2 (*Unaudited* Quarterly *Financial Statements*).

4.3.9 *Notes.* On or before the applicable Disbursement Date, the Borrower shall have duly executed and delivered to BlaO a Note in the amount of the requested Disbursement dated as of such Disbursement Date which, when delivered, shall constitute a *título ejecutivo* under the Applicable Laws of the Borrower's Country.

4.3.10 *Authorizations.* Except as disclosed in Schedule 3.1.4, all Relevant Authorizations are in full force and effect and copies thereof have been delivered to BlaO if requested.

4.3.11 *Key Performance Indicators*. The Borrower is in compliance with the Key Performance Indicators.

4.3.12 *Colombian Central Bank Registration.* In accordance with Applicable Law, the relevant Disbursement has been registered with the Colombian Central Bank (*Banco de la República*) (or evidence that such registration has been initiated on or before the proposed Disbursement Date has been delivered to BlaO).

**ARTICLE 5**

**Covenants**

**Section 5.1 Affirmative Covenants.**

The Borrower shall, and shall cause each of its Subsidiaries to:

5.1.1 *Use of Proceeds*. Cause the proceeds of the BlaO Loan to be applied exclusively in the Borrower's Country, Mexico and Brazil, for (i) the expansion of current operations, whether conducted directly or indirectly through any of the Guarantors, (ii) working capital needs, (iii) capital expenditures needs, and (iv) in the case of the Interest Reserve Amount, payments of interest on the Loan, all in accordance with Applicable Law and the terms of this Agreement; *provided*, that the proceeds of all Disbursements shall not be used to finance activities listed in the List of Excluded Activities.

5.1.2 *Existence; Continuing Engagement in Business.* Maintain its corporate existence and take all reasonable actions necessary to obtain and maintain in full force and effect all Relevant Authorizations, all Intellectual Property required in connection with its Business and all other rights, privileges and franchises necessary or desirable in the normal conduct of its Business.

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5.1.3 *Conduct of Business; Compliance with Applicable Laws*. Conduct its business in accordance with prudent industry practice, the Relevant Authorizations and all other Applicable Laws.

5.1.4 *Systems; Books and Records*. Maintain an accounting system, a management information system and books of account and other records adequate to reflect accurately and fairly its financial condition and the results of its operations in conformity with the Accounting Principles, Applicable Law and prudent industry practice.

5.1.5 *Access to Premises and Records*. Upon BlaO's request, permit representatives and staff of BlaO to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) visit and inspect any premises where the Borrower's or any Subsidiary's business is conducted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) inspect all facilities, plant and equipment of the Borrower or any Subsidiary and examine and make abstracts and/or reproductions of their books of account and records, including records pertaining to compliance with Environmental and Social Requirements (as defined in <u>Annex 2</u> (*Environmental and Social Provisions*)) and Prohibited Practices; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) have access to the Borrower's and its Subsidiaries' employees, officers, agents, Auditors, contractors and/or subcontractors.

5.1.6 *Auditor*. Maintain an Acceptable Auditor as its auditor. In the event of any change in the Auditor to another Acceptable Auditor, the Borrower shall deliver to BlaO no later than five (5) Business Days following the Borrower's appointment of a new Acceptable Auditor, a written notification of such appointment.

5.1.7 *Ranking of Obligations*. Take such action as may be necessary to ensure that, at all times, the Obligations are senior, direct and unconditional unsubordinated obligations of the Borrower that rank at least equal in right of payment with all other present and future unsubordinated and unsecured indebtedness and other obligations of the Borrower, other than those preferred solely by the Applicable Laws of the Borrower's Country relating to bankruptcy, insolvency, liquidation or other similar laws of general application.

5.1.8 *Environmental and Social Compliance*. Comply with Sections 5 (*E&S Affirmative Covenants*) and 6 (*E&S Negative Covenants*) of <u>Annex 2</u> (*Environmental and Social Provisions*).

5.1.9 *Cooperation*. If BlaO notifies the Borrower that a misrepresentation may have been made with respect to Section 3.1.12 (*Absence of Prohibited Practices; Sanctions Lists*), or a breach under Section 5.2.7 (*Prohibited Practices*), Section 5.2.8 (*List of Excluded Activities*) or Section 5.3.3(ii)(e) (*Information - Notices*) has occurred, then (i) cooperate in good faith with BlaO and its representatives in determining whether such misrepresentation or breach has occurred, (ii) respond promptly (and in any event within five (5) days) with reasonable detail to any notice from BlaO relating thereto, and (iii) upon BlaO's request, furnish documentary support for such response.

5.1.10 *Taxes*. (i) Pay and discharge all Taxes imposed upon its Property, income or profits and deduct or withhold all Taxes required to be deducted or withheld and properly pay such Taxes to the appropriate Authority when required under Applicable Law, provided, that neither the Borrower nor any Subsidiary shall be required to pay any such Tax which is being diligently contested in good faith by appropriate proceedings with respect to which it has established adequate reserves; and (ii) file all Tax Returns as and when required by Applicable Law to be filed by it; and (iii) pay any Tax imposed by any Authority of its jurisdiction of organization or operation, if any, in relation to the execution, delivery, registration, notarization or enforcement of any Financing Document.

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5.1.11 *Insurance*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Maintain insurance policies with reputable insurers in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) permit BlaO to review copies of any insurance policy of the Borrower or any of its Subsidiaries, if reasonably requested by BlaO;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) promptly notify the relevant insurer of any claim by the Borrower under any policy written by that insurer and diligently pursue that claim, except for immaterial claims where, in the reasonable judgment of the Borrower or any of its Subsidiaries, the cost to pursue such claim would exceed the amount of such claim; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) use any insurance proceeds it receives including from BlaO as loss payee with respect to any Secured Property for the loss of, or damage to, any material asset, or to compensate any Person that has suffered a loss, solely (i) to replace or repair that asset, (ii) pay such Person as applicable, or (iii) to prepay the BlaO Loan within five (5) Business Days of receipt thereof.

5.1.12 *Perfection and Maintenance of Security*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) With respect to any Security Document entered into after the Effective Date, file for registration no later than five (5) Business Days, and register no later than ninety (90) days, in each case after the execution thereof, such Security Document at the relevant public registry in the Borrower's Country and provide to BlaO a copy of evidence of such registration within thirty (30) days of receipt thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) At all times, maintain the Security free and clear of all Liens in accordance with the Security Documents for the sole and exclusive benefit of the Senior Lenders and, at the request of BlaO, perform all acts and make, execute, deliver and file all documents (including, if applicable, any financing statements, registration statements, continuation statements or other statements) or instruments required in order to ensure that the Senior Lenders at all times hold a first priority perfected Lien in all Secured Property pursuant to the terms of the Security Documents, including, at BlaO's request, defending, at the Borrower's expense, the Senior Lenders' right, title and interest to the Security and the Secured Property.

5.1.13 *Financial Covenants*. Maintain at all times the following ratios (the "**Financial Covenants**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) beginning with the second Financial Quarter of the 2023 Financial Year, a Minimum Prospective DSCR of not less than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 1.20:1
 for the second, third, and fourth Financial Quarters of the 2023 Financial Year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) 1.25:1
 for each Financial Quarter of the 2024 Financial Year; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) 1.30:1
 for each Financial Quarter thereafter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) beginning with the second Financial Quarter of the 2023 Financial Year a Minimum Historical DSCR of not less than 1.30:1; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) beginning with the fourth Financial Quarter of the 2024 Financial Year, a Maximum Net Debt to Consolidated EBITDA Ratio of not more than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 3:1 for
 the fourth Financial Quarter of the 2024 Financial Year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) 2.5:1 for
 each Financial Quarter of the 2025 Financial Year; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) 2:1 for
 each Financial Quarter thereafter.

For any determination date for which Financial Statements are not available, the Borrower shall calculate its compliance with this Section 5.1.13 on such date based on documentation available to it (including financial records, reports and any other documents acceptable to BlaO), which calculations and documenting basis shall be provided to BlaO upon its request.

5.1.14 *Beneficial Ownership*. Cooperate with and support BlaO's efforts to obtain beneficial ownership information from upstream holders of Share Capital of the Borrower.

5.1.15 *Compliance with Laws against Money Laundering and Combating the Financing of Terrorism*. Adopt and comply with internal policies, procedures, and controls for AML/CFT that, to BlaO's satisfaction, are in compliance with Applicable Law and consistent with its business and customer profile and international AML/CFT best practices.

5.1.16 *Most Favored Lender*. If the Borrower or any Subsidiary enters into, amends or modifies documents evidencing or governing Debt (other than (i) Debt permitted under Section 5.2.12 (*Permitted Financial Debt*), (ii) Debt incurred under convertible note instruments issued in connection with equity fundraising, (iii) Debt extended to a Subsidiary of the Borrower by the Borrower or another Subsidiary of the Borrower, or (iv) if a SPAC Transaction is consummated, Debt extended to the Borrower or a Subsidiary of the Borrower by the Borrower's holding company) to which the Borrower or any Subsidiary is bound that contain, or are amended and modified to contain: (a) any covenant, event of default or remedy that is not provided for in this Agreement or any other Financing Document, or (b) any covenant or Event of Default that is more restrictive than the same or similar covenant or event of default provided in this Agreement or any other Financing Document (any or all of the foregoing, collectively, "**Most Favored Lender Provisions**"), the Borrower shall, at BlaO's option and promptly upon request, execute an amendment to this Agreement, in form and substance satisfactory to BlaO, to include such Most Favored Lender Provisions.

5.1.17 *Amendment to Merqueo Brazil's Organizational Documents*. Ensure that, within thirty (30) days following the first Disbursement Date hereunder, the Amendment to Merqueo Brazil's Organizational Documents, in form and substance satisfactory to BlaO, is duly adopted and approved by the shareholders of Merqueo Brazil and duly registered with the Board of Trade of the State of São Paulo (*Junta Comercial do Estado de São Paulo*) in due course and, in case the Board of Trade of the State of São Paulo (*Junta Comercial do Estado de São Paulo*) presents any additional requirements (*exigências*) in connection with such registration, duly and timely comply with any such additional requirements (*exigências*), so that at all times the original filing number of the Amendment to Merqueo Brazil's Organizational Documents will be in place to ensure that the effects of such registration are retroactive to the date of the Amendment to Merqueo Brazil's Organizational Documents.

5.1.18 *Relevant Authorizations.* Within nine (9) months following the Effective Date, obtain the Authorizations described in Schedule 3.1.4 and provide evidence thereof to BlaO.

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5.1.19 *Compliance with the Corporate Governance Action Plan.* Adopt and comply with the Corporate Governance Action Plan within the relevant time periods set forth in Schedule 8 (*Corporate Governance Action Plan*).

**Section 5.2 Negative Covenants.**

The Borrower shall not, and shall cause each of its Subsidiaries not to:

5.2.1 *Limitation on Restricted Payments*. Make any Restricted Payment unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) such Restricted Payment is made after the date of the First Repayment Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) no Default has occurred and is continuing or would exist after giving effect to such Restricted Payment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Borrower is, and, after giving effect to such Restricted Payment, would be, in compliance with Section 5.1.13 (*Financial Covenants*); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) in the case of dividends, distributions on the Share Capital of the Borrower (other than dividends or distributions payable in shares of the Borrower) or any payment of subordinated debt, such Restricted Payment is made from net income of the current Financial Year or retained earnings (excluding any amount resulting from the revaluation of any of the Borrower's assets); *provided*, that, for the avoidance of doubt, the foregoing shall not restrict Subsidiaries of the Borrower from making Restricted Payments to the Borrower.

5.2.2 *No Liens.* Create, or permit to exist: (i) any Liens over any of its Property (including Intellectual Property, the Share Capital of its Subsidiaries, or any trade accounts) other than Permitted Liens; or (ii) any Lien over any of the Borrower's Share Capital, to the extent any such Lien is created in connection with the incurrence of debt financing for the benefit of the Borrower or any of its Subsidiaries (or, if a SPAC Transaction is consummated, for the benefit of the Borrower's holding company).

5.2.3 *Maintenance of Existence; Fundamental Changes to the Borrower*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Change its legal form or amend or modify its organizational documents in any manner that materially and adversely affects BlaO's rights or remedies under the Financing Documents; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Undertake or permit any merger, consolidation, spin-off or reorganization unless: (a) it shall be the surviving entity; and (b) immediately prior to or after giving effect to such transaction (and treating all liabilities assumed as a result of such transaction as having been incurred by it at the time of such transaction), no Default shall exist.

5.2.4 *Affiliate Transactions*. Enter into any transaction, including the purchase, sale, lease or exchange of Property or the rendering of any service, with any Affiliate (an ***Affiliate Transaction***), other than transactions entered into in the ordinary course of its business on fair and reasonable terms substantially as favorable to the Borrower as those that might be obtained in a comparable arms-length transaction at the time from a Person who is not an Affiliate.

5.2.5 *Scope of Business*. Change the nature or scope of the Business as of the date hereof, other than businesses reasonably related or ancillary to the Business.

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5.2.6 *Accounting Changes*. Change its Financial Year or make or permit any change in accounting policies or reporting practices, except as required to comply with the Accounting Principles or Applicable Law.

5.2.7 *Prohibited Practices*. Commit, engage in, or be involved with (or authorize or permit any Affiliate or any other Person acting on its behalf to commit, engage in, or be involved with) any Prohibited Practice with respect to any transaction contemplated by any Financing Document.

5.2.8 *List of Excluded Activities*. Engage in, or be involved with, any activity included in the List of Excluded Activities.

5.2.9 *Sanctions Lists*. Be included on any Internationally Recognized Sanctions Lists or the IDB Group List of Sanctioned Firms and Individuals.

5.2.10 *Limitation on Transfer of Intellectual Property*. Sell, lease, transfer or otherwise dispose of any of its Intellectual Property (except for (i) any lease or license entered into between the Borrower and/or one or more of its Subsidiaries in the ordinary course of business and (ii) any license entered into between the Borrower and/or one or more third parties in connection with the services provided by the Borrower to its customers in the ordinary course of business).

5.2.11 *No Restriction of Dividends*. Directly or indirectly, create or otherwise permit to exist or become effective any restriction on the ability of any Subsidiary of the Borrower to: (i) pay dividends or make any other distributions on its capital stock or any other equity interest directly or indirectly owned by the Borrower; or (ii) pay any Financial Debt owed to the Borrower or any of its Subsidiaries; or (iii) make loans or advances to the Borrower or any of its Subsidiaries except under or by reason of Applicable Laws.

5.2.12 *Permitted Financial Debt*. Incur, assume or permit to exist any Financial Debt other than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Senior Loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Financial Debt in the form of a convertible notes entered into between the Borrower and equity investors, so long as each such convertible note: (a) has an original term of no more than eighteen (18) months; and (b) is mandatorily convertible into Share Capital at the conclusion of such term;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Financial Debt incurred in respect of the Warehouse Leases;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) until December 31, 2024:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Financial
 Debt incurred in respect of leases of refrigerators and racks, in an aggregate amount outstanding
 at any one time not to exceed three million five hundred thousand Dollars ($3,500,000) or
 the equivalent thereof in any other currency; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Financial
 Debt incurred under working capital lines of credit secured by Cash accounts, in an aggregate
 amount outstanding at any one time not to exceed two million Dollars ($2,000,000) or the
 equivalent thereof in any other currency; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) after December 31, 2024, Financial Debt so long as the Borrower remains in compliance with Section 5.1.13 (*Financial Covenants*) before and after the incurrence of such Financial Debt.

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For the avoidance of doubt, this Section 5.2.12 (1) does not modify, and is without prejudice to the compliance obligations in respect of, the Financial Covenants and (2) does not apply to trade accounts in the ordinary course of business payable within ninety (90) days.

5.2.13 *Prepayment of IDB Invest Loan*. Make any prepayment of the IDB Invest Loan after the third (3rd) anniversary of the Effective Date unless the Borrower simultaneously prepays the BlaO Loan on a *pro rata* basis in accordance with Section 2.4.1 (*Voluntary Prepayments*).

5.2.14 *Subsidiaries*. Form or own any Subsidiaries (excluding the Guarantors) or otherwise acquire or own any portion of the Share Capital of any other Person, except that the Borrower may form additional Subsidiaries so long as: (i) prior notice is given thereto to BlaO; (ii) such Subsidiary enters into a guarantee of the Obligations, substantially similar to the Guarantee Agreement and in form and substance satisfactory to BlaO; (iii) a pledge over the Share Capital of such newly-formed Subsidiary is granted to the Senior Lenders to secure the Obligations and the corresponding amounts due in respect of the IDB Invest Loan, in form and substance satisfactory to BlaO; and (iv) BlaO has received such legal opinions as it may require in connection with the foregoing, including in respect of the enforceability of the above-described guarantee and share pledge.

**Section 5.3 Information.**

The Borrower shall deliver to BlaO:

5.3.1 *Audited Annual Financial Statements*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) As soon as available but in any event by June 15, 2022, one (1) copy of the Borrower's Consolidated, and each of its Subsidiaries' unconsolidated, audited Financial Statements for the 2021 Financial Year setting forth in comparative form the corresponding figures for the 2020 Financial Year and all associated notes to such statements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) as soon as available but in any event within ninety (90) days after the end of each Financial Year thereafter, one (1) copy of the Borrower's Consolidated, and each of its Subsidiaries' unconsolidated, audited Financial Statements for such Financial Year setting forth in comparative form the corresponding figures for the previous Financial Year and all associated notes to such statements.

5.3.2 *Unaudited* Quarterly *Financial Statements*. As soon as available but in any event within forty-five (45) days after the end of each of the four (4) Financial Quarters of each Financial Year: (i) one (1) copy of the unaudited Financial Statements of the Borrower (on a Consolidated Basis) and each of its Subsidiaries (on an unconsolidated basis) for the Financial Quarter most recently ended as of such date setting forth in comparative form the corresponding figures for the corresponding periods of the previous Financial Year and all associated notes to such statement; and (ii) a certificate of an Authorized Representative of the Borrower substantially in the form of <u>Exhibit 6</u> (*Form of Borrower's Quarterly Certificate*), which shall include an explanation of the key operating variables and calculations in reasonable detail demonstrating compliance with the Financial Covenants substantially in the form of <u>Exhibit 7</u> (*Form of Financial Ratios Compliance Certificate*), or detailing any non-compliance.

5.3.3 *Notices*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Within five (5) days after receipt (or delivery) by the Borrower or any Subsidiary, copies of all material notices from (or to) any Authority or otherwise related to or affecting the Borrower or any Subsidiary, the BlaO Loan, the use of Loan proceeds, or the Borrower's or any Subsidiary's ability to perform its obligations hereunder or under any other Financing Documents, including notices from any Authority seeking to terminate, revoke, suspend or cancel any Relevant Authorization of the Borrower, together with copies of such notices, if written.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Promptly (and in any event within five (5) days) upon becoming aware of the occurrence thereof, notice of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any
 Default, specifying the nature thereof and any steps the Borrower is taking to remedy it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any Mandatory
 Prepayment Event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any
 Action (commenced or ongoing) that has had or could reasonably be expected to have a Material
 Adverse Effect, specifying the nature of the proceedings and the steps the Borrower is taking
 or proposes to take with respect thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any
 actual or proposed material change in the business or operations of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any
 Prohibited Practice by the Borrower, its Affiliates, or any Person acting on its behalf with
 respect to the BlaO Loan or any transaction contemplated by this Agreement, or any other
 Financing Document, or the imposition by any international financial institution of any sanction
 on the Borrower or any Subsidiary for any Prohibited Practice, including any information
 in its possession concerning such situation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the
 commencement of any steps taken in connection with, or in anticipation of: (1) a SPAC Transaction,
 any material developments relating thereto, and the conclusion of any such SPAC Transaction;
 or (2) the listing of the Borrower's or its parent company's Share Capital on
 a U.S. securities exchange registered with the U.S. Securities and Exchange Commission and
 any material developments relating thereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any
 other event or condition that has had or could reasonably be expected to have a Material
 Adverse Effect and the steps the Borrower or the relevant Subsidiary is taking to remedy
 it.

5.3.4 *Communications with Auditor*. Promptly upon the Borrower's receipt thereof, a copy of any management letter or other material communication sent by the Auditor (or any other accountants retained by the Borrower or any Subsidiary) to the Borrower or any Subsidiary in relation to the Borrower's or any Subsidiary's financial, accounting, management information or other systems, policies, management or accounts (if not otherwise delivered under this Section 5.3).

5.3.5 *Impact & Sustainability Indicators*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Within forty-five (45) days after the end of each Financial Year, deliver a report on certain annual impact and sustainability indicators for such Financial Year in the form of, and with the information listed in, <u>Schedule 3</u> (*Impact & Sustainability Indicators*);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) within forty-five (45) days after the end of each Financial Quarter, deliver a report on certain quarterly impact and sustainability indicators for such Financial Quarter in the form of, and with the information listed in, <u>Schedule 3</u> (*Impact & Sustainability Indicators*);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) within the time periods set forth therein, provide evidence of the completion of the deliverables set forth in the Corporate Governance Action Plan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) upon the full prepayment or repayment of the BlaO Loan, no later than the date of the relevant prepayment or repayment, an updated report in the form of, and with the information and addressing the topics listed in, <u>Schedule 3</u> (*Impact & Sustainability Indicators*).

5.3.6 *Beneficial Ownership Information*. Provide to BlaO, at least annually, and at BlaO's request, updated information regarding the direct and indirect ownership of the Borrower to the extent such information is made available to the Borrower by its equity owners (and, in connection therewith, the Borrower shall use its best efforts to procure the disclosure of such information from its equity owners).

5.3.7 *Founders' Agreements*. Provide to BlaO, as soon as available, and at BlaO's request, copies of any and all of the Founders' employment or services agreements.

5.3.8 *Board Presentations*. Provide to BlaO, as soon as it is available after the end of each Financial Quarter and each Financial Year, and at BlaO's request, the management statements and presentations delivered to the board of directors of the Borrower showing the financial performance of the Borrower and its Subsidiaries, to the extent that disclosing such information does not create a conflict of interest for the Borrower or would constitute a breach the Borrower's confidentiality obligations (as reasonably determined by the Borrower based on knowledgeable advice from legal counsel).

5.3.9 *Amendment to Merqueo Brazil's Organizational Documents*. Provide to BlaO, as soon as available, but no later than twenty (20) days following the date of the Amendment to Merqueo Brazil's Organizational Documents, a true, correct, complete and fully-executed copy of the Amendment to Merqueo Brazil's Organizational Documents, together with evidence of its proper filing with the Board of Trade of the State of São Paulo (*Junta Comercial do Estado de São Paulo*).

5.3.10 *Additional Information*. Such information as BlaO may reasonably request with respect to the Borrower or any Subsidiary, its Property, the BlaO Loan and the Borrower's and each Subsidiary's performance of its obligations under the Financing Documents.

**Section 5.4 Environmental and Social.** The Borrower shall deliver to BlaO the information required in Section 5 (*E&S Information Covenants*) of <u>Annex 2</u> (*Environmental and Social Provisions*)*.*

 

**ARTICLE 6**

**Events of Default**

**Section 6.1 Events of Default**.

It shall be an Event of Default if:

6.1.1 *Failure to Pay or Perform under Financing Documents*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Borrower or any Guarantor fails to pay when due (a) any Obligation, including principal of, or interest on, the BlaO Loan, or (b) any other loan from BlaO to the Borrower or any Guarantor (other than the BlaO Loan) or any reimbursement obligation in respect of a guarantee provided by BlaO for the Borrower's or any Guarantor's benefit.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Borrower or any of its Subsidiaries fails to perform of observe any term, covenant or agreement contained in Section 2.17 (*Notes*), Section 5.1.1 (*Use of Proceeds*), Section 5.1.2 (*Existence; Continuing Engagement in Business*), Section 5.1.7 (*Ranking of Obligations*), Section 5.1.8 (*Environmental and Social Compliance*), Section 5.2 (*Negative Covenants*), and Section 5.3.3 (*Notices*).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Borrower or any of its Subsidiaries fails to comply with any of its other obligations contained in this Agreement or any other Financing Document or any other agreement between the Borrower and BlaO (other than an obligation referred to elsewhere in this Section 6.1); *provided*, that if capable of being cured, such failure has continued for thirty (30) days after the earlier of (a) notice of such failure to comply being provided by BlaO or (b) the date on which the Borrower or such Subsidiary becomes, or should have become, aware of such failure; provided further that, for the avoidance of doubt, no cure period shall apply if in the determination of BlaO, such failure has had or could reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Any Financing Document or any material term thereof (a) is revoked, becomes void or ceases to be in full force and effect and enforceable, (b) becomes unlawful, (c) is repudiated by any party thereto, or (d) has its legality, validity or enforceability challenged by any Person.

6.1.2 *Failure to Pay or Perform with respect to the IDB Invest Loan*. (i) The Borrower fails to pay the IDB Invest Loan or fails to perform any of its obligations when due or as required under the IDB Invest Loan Agreement and any such failure continues for more than any applicable period of grace or (ii) the IDB Invest Loan is accelerated, becomes subject to mandatory prepayment or redemption or, prior to its stated maturity, otherwise becomes due or is placed on demand.

6.1.3 *Failure to Pay or Perform with respect to Other Debt*. (i) The Borrower or any Subsidiary fails to pay any Debt (other than the Obligations) or fails to perform any of its obligations when due or as required under any agreement pursuant to which there is any outstanding Debt (other than the Obligations or any Debt described in subclause (i)(b) of Section 6.1.1 and in Section 6.1.2) and any such failure continues for more than any applicable period of grace, or (ii) any Debt of the Borrower or any Subsidiary (other than the Obligations or any Debt described in subclause (i)(b) of Section 6.1.1 and in Section 6.1.2) is accelerated, becomes subject to mandatory prepayment or redemption or, prior to its stated maturity, otherwise becomes due or is placed on demand.

6.1.4 *Misrepresentation*. Any representation or warranty made by the Borrower or any Subsidiary in any Financing Document or in any document delivered thereunder is found to have been incorrect or misleading in any material respect when made or deemed made (other than in respect of representations and warranties that were already conditioned as to materiality, in which case, any such representation and warranty is found to have been incorrect or misleading in any respect when made or deemed made).

6.1.5 *Expropriation*. Any Authority (i) condemns, nationalizes, confiscates or otherwise expropriates, intervenes, or assumes control of all or any substantial part of the Property of the Borrower or of any Subsidiary or of its Share Capital or commences a proceeding in furtherance of any of the foregoing, or (ii) takes any action that would dissolve the Borrower or any Subsidiary, prevent the Borrower or any Subsidiary from carrying on all or a substantial part of its business or limit the Borrower's ability to fulfill its obligations hereunder or under any other Financing Documents.

6.1.6 *Insolvency Events.* Any Insolvency Event occurs.

6.1.7 *Attachment; Judgments*. (i) An attachment or analogous process is levied or enforced against any Property of the Borrower or any Subsidiary, or (ii) a final judgment, order or arbitral award is rendered against the Borrower or any Subsidiary or any of its Property, and such attachment, process, judgment, order or arbitral award is for an amount in excess of the equivalent of one million Dollars ($1,000,000).

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6.1.8 *Failure to Maintain Relevant Authorizations*. Any Relevant Authorization ceases to be in full force and effect and is not restored within thirty (30) days.

6.1.9 *Material Adverse Effect*. Any event occurs or any condition exists that, in the opinion of BlaO, has had, or could reasonably be expected to have, a Material Adverse Effect.

6.1.10 *Moratorium.* Any Authority of the Borrower's Country or a Guarantor's country declares any general payment delay, refusal to pay or acknowledge a payment obligation or repudiation or other action (whether or not formally announced), which in any such case, (i) relates to its debts or debts or any category of debts of borrowers in the relevant country not to be paid in accordance with their terms or (ii) prevents the availability of foreign exchange to the Borrower or any Guarantor for the purpose of performing any material obligation under this Agreement or any other Financing Document to which it is a party.

6.1.11 *Security*. BlaO ceases to hold for its sole and exclusive benefit a valid first priority perfected security interest in any part of the Security.

6.1.12 *Abandonment; Interruption*. The Borrower or any Guarantor ceases to carry on the Business for more than thirty (30) continuous days.

**Section 6.2 Remedies.**

If an Event of Default occurs and is continuing, BlaO may, by written notice to the Borrower, take any or all of the following actions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) suspend or terminate the BlaO Loan Commitment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) declare the BlaO Loan, or such part of the BlaO Loan as is specified in the notice (with accrued interest thereon), and all other Obligations to be immediately due and payable (in the case where all Obligations are declared due and payable pursuant to this clause (ii), the Borrower acknowledges and agrees that, for purposes of Section 2.4.3(i) (*Prepayment Fees and Costs*), the payment thereof shall be deemed a prepayment subject to the prepayment fee described in Section 2.4.3(i)); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) exercise any other remedies that may be available to BlaO under any Financing Document or Applicable Law.

**Section 6.3 Bankruptcy.**

If any Insolvency Event occurs with respect to the Borrower, then (i) the BlaO Loan Commitment shall be automatically terminated, and (ii) all Obligations arising under this Agreement shall be automatically and immediately due and payable without any presentment, demand, protest or notice of any kind, all of which the Borrower hereby expressly waives (in the case where all Obligations become due and payable pursuant to this Section 6.3, the Borrower acknowledges and agrees that, for purposes of Section 2.4.3(i) (*Prepayment Fees and Costs*), the payment thereof shall be deemed a prepayment subject to the prepayment fee described in Section 2.4.3(i)).

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**ARTICLE 7**

**Miscellaneous**

**Section 7.1 Notices.**

Any notice, request, demand, approval or other communication to be issued under this Agreement or any other Financing Document shall be in writing. Subject to Section 7.10.4 (*Applicable Law and Jurisdiction*), any notice, request, demand or other communication may be delivered by hand, certified or registered airmail, internationally recognized courier service, or email. Notices shall be deemed to have been given when received; *provided*, that email delivery shall be effective only upon receipt of an acknowledgment from the intended recipient such as by the "return receipt requested" function, as available, reply email or other written acknowledgment; *provided further*, that BlaO may at any time require that any notice delivered by email be confirmed by any other means described herein to the party's address specified below or at such other address as such party shall have designated by notice to the other party hereto and shall be effective upon receipt.

For the Borrower:

Merqueo S.A.S.

Carrera 97A No 9A-50

Bogotá, Colombia

Attention: Miguel Mc Allister

Alternative address for communications by electronic mail:

miguel@merqueo.com

With a copy (which does not constitute notice) to: <br> jmgarcia@merqueo.com

For BlaO:

BLUE LIKE AN ORANGE SUSTAINABLE CAPITAL LATIN AMERICA

HOLDINGS II S.A.R.L.

5, Allée Scheffer

L-2520 Luxembourg

Grand Duchy of Luxembourg

Attention: Emmanuelle Yannakis

Alternative address for communications by electronic mail:

Emmanuelle.yannakis@blueorangecapital.com

**Section 7.2 English Language.**

All documents to be furnished or communications to be made under this Agreement or any other Financing Document shall be in the English language and, where any original version of any such document or communication is not in English, shall, if requested by BlaO, be accompanied by an English translation certified by an Authorized Representative of the Borrower to be a true and correct translation of the original. BlaO may obtain an official or non-official English or Spanish translation of any Financing Document or any other document or communication received or prepared in any other language at the Borrower's expense. BlaO may deem any such translation provided by the Borrower or otherwise obtained by BlaO to be the governing version.

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**Section 7.3 Indemnity; Waiver of Consequential Damages.**

7.3.1 The Borrower shall indemnify and hold harmless BlaO and its officers, directors, agents, employees, representatives, attorneys, Affiliates, successors and assigns (collectively, the "**Indemnified Persons**") from and against any and all claims, actions, investigations, proceedings, suits, judgments, demands, damages (including foreseeable and unforeseeable compensatory damages and punitive claims), losses, liabilities (including liabilities for penalties), costs and expenses of any nature or kind whatsoever, whether actual or prospective, and regardless of whether any Indemnified Person is a party thereto, including all court costs and reasonable fees and disbursements of counsel on a full indemnity basis, arising out of or in connection with: (i) the execution, delivery or enforcement of, or the performance of any transaction contemplated under, this Agreement or any other Financing Document; (ii) the BlaO Loan or the use of Loan proceeds; (iii) any Transaction Taxes or Other Taxes arising in connection with payments made under any Financing Document and any liability (including penalties, additions to tax, interest and expenses) arising therefrom or with respect thereto; (iv) any misrepresentation or omission with respect to the information provided to BlaO in connection with the BlaO Loan; or (v) any actual or prospective Action relating to any of the foregoing, whether based on contract, tort or any other theory and regardless of whether any Indemnified Person is a party thereto (all of the foregoing, collectively, the "**Indemnified Liabilities**"); *provided*, that, the Borrower shall have no obligation hereunder to any Indemnified Person with respect to Indemnified Liabilities arising from the gross negligence or willful misconduct of any such Indemnified Person as determined by a non-appealable final judgment of a court of competent jurisdiction. The rights granted under this Section 7.3 are in addition to the rights granted under any other provision of this Agreement, under any other Financing Document, Applicable Law or otherwise. All amounts due by the Borrower to any Person hereunder shall be due and payable within five (5) Business Days of demand by such Person. This Section 7.3 shall survive repayment of the Obligations.

7.3.2 To the fullest extent permitted by Applicable Law, the Borrower shall not assert, and hereby waives, and acknowledges that no other Person shall have, any claim against any Indemnified Person, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Financing Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Senior Loan or the use of the proceeds thereof. No Indemnified Person referred to in Section 7.3.1 shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed to such unintended recipients by such Indemnified Person through telecommunications, electronic or other information transmission systems in connection with this Agreement or any other Financing Documents or the transactions contemplated hereby or thereby.

**Section 7.4 Successors and Assigns.**

7.4.1 This Agreement binds and benefits the respective successors and assignees of the parties; *provided, however*, that the Borrower shall not assign or delegate any of its rights or obligations under this Agreement or any other Financing Document without BlaO's prior written consent. Any assignment or delegation by the Borrower in violation of this Section 7.4.1 shall be void *ab initio*.

7.4.2 BlaO may, without the need of any notice to or consent from any party or any other action, assign, participate or otherwise allot to one or more Persons (other than any Person that would qualify as a Competing Business) all or any portion of its rights and obligations under this Agreement, the Notes and the other Financing Documents.

7.4.3 BlaO may not assign at any time, its rights and obligations under this Agreement or any other Financing Document to any Person that would qualify as a Competing Business; *provided*, that if an Event of Default occurs and is continuing, BlaO may, without the need of any notice to or consent from any party or any other action, assign its rights and obligations under this Agreement or any other Financing Document to any Person that qualifies as a Competing Business (for the avoidance of doubt, without prejudice to BlaO's rights under Section 7.4.2).

BlaO Loan Agreement

CONFIDENTIAL

**Section 7.5 Counterparts.**

This Agreement may be executed in several counterparts, each of which is an original, and all of which together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page of this Agreement by facsimile or in electronic (i.e., "pdf" or "tif") format shall be effective as delivery of a manually executed counterpart of this Agreement.

**Section 7.6 Confidential Information.**

7.6.1 BlaO may disclose any documents or records of, or information relating to, the Borrower, its Subsidiaries, and their Property, business or affairs to: (i) any Person for the purpose of exercising any power, remedy, right, authority or discretion relevant to this Agreement or any other Financing Document including in connection with the defense by BlaO of any Action brought by any other party to a Financing Document; (ii) any Person pursuant to Applicable Law; (iii) any banking or other regulatory or examining authorities (whether governmental or otherwise) pursuant to and in accordance with whose instructions it and other banks must customarily comply; (iv) the directors, officers, employees, arrangers, co-lenders, attorneys, consultants, rating agencies, independent auditors and advisors (including any technical, financial and other advisors) of BlaO and IDB Invest, and their respective affiliates or related Persons; and (v) any Person in connection with any proposed sale, transfer, assignment, insurance, coverage or other disposition of BlaO's rights under this Agreement or any other Financing Document.

7.6.2 The Borrower expressly authorizes BlaO to request from any Person information relating to the Borrower, and the Borrower agrees to hold each such Person harmless and exempt from any and all liability under Applicable Law in connection with the request for, and disclosure of, such information by such Person.

7.6.3 The Borrower acknowledges and agrees that, notwithstanding any other agreement between the Borrower and BlaO, disclosure by any such Person of any documents or records of, or information relating to, the Borrower, its Property, business or affairs in the circumstances contemplated by this Section 7.6 does not violate any duty owed to the Borrower by such Person under this Agreement, any other Financing Document or any such other agreement.

**Section 7.7 Amendment.**

Any amendment or waiver of, or any consent given under, this Agreement shall be effective only if in writing and, in the case of any amendment, signed by the Borrower and BlaO or their permitted successors and assigns.

**Section 7.8 Savings of Rights; Remedies; No Waiver.**

7.8.1 The rights and remedies of BlaO in relation to any misrepresentation or breach of warranty by the Borrower shall not be prejudiced by any investigation by or on behalf of BlaO into the Borrower's affairs, by the execution or the performance of this Agreement or by any other act or thing that may be done by or on behalf of BlaO in connection with this Agreement and that might, apart from this Section 7.8, prejudice such rights or remedies.

BlaO Loan Agreement

CONFIDENTIAL

7.8.2 No course of dealing or waiver by BlaO in connection with any condition of Disbursement under this Agreement shall impair any right, power or remedy of BlaO with respect to any other condition of Disbursement, or be construed to be a waiver thereof.

7.8.3 No course of dealing and no failure or delay by BlaO in exercising, in whole or in part, any power, remedy, discretion, authority or other right under this Agreement or any other Financing Document shall waive or impair, or be construed to be a waiver of or an acquiescence in, such or any other power, remedy, discretion, authority or right under this Agreement, or in any manner preclude its additional or future exercise, nor shall the action of BlaO with respect to any default, or any acquiescence by it therein, affect or impair any right, power or remedy of BlaO with respect to any other default. The rights and remedies provided in this Agreement are cumulative and not exclusive of any remedies provided by Applicable Law.

**Section 7.9 Severability**. Any provision hereof that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof and without affecting the validity or enforceability of such provision in any other jurisdiction. Where terms of any Applicable Law resulting in such prohibition or unenforceability may be waived contractually, they are hereby waived by the parties hereto to the full extent permitted by Applicable Law so that this Agreement may be deemed valid, binding and enforceable in its entirety in accordance with its terms.

**Section 7.10 Applicable Law and Jurisdiction.**

7.10.1 This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York of the United States of America without regard to any conflict of laws principles thereof that would result in the general application of the law of any other jurisdiction.

7.10.2 The Borrower hereby irrevocably and unconditionally submits, for itself and its Property, to the non-exclusive jurisdiction of the courts of the State of New York sitting in the Borough of Manhattan and of the United States of America District Court for the Southern District of New York, and any appellate court from any thereof, in any Action arising out of or relating to this Agreement or any other Financing Document (other than the Notes and any Security Document) to which the Borrower is a party. Final judgment against the Borrower in any such Action shall be conclusive and may be enforced in any other jurisdiction including the Borrower's Country by suit on the judgment, a certified or exemplified copy of which shall be conclusive evidence of the judgment, or in any other manner provided by Applicable Law.

7.10.3 Nothing in this Agreement shall affect BlaO's right to commence legal proceedings or otherwise sue the Borrower in the Borrower's Country, in any other appropriate jurisdiction or concurrently in more than one jurisdiction or to serve process, pleadings and other legal papers upon the Borrower in any manner authorized by the laws of any such jurisdiction.

7.10.4 The Borrower agrees irrevocably to designate, appoint and empower Registered Agents Inc., with offices at 90 State Street, Suite 700, Office 40, Albany, New York, NY 12207, or such other Person located in the State of New York that BlaO approves is acceptable to it, as the Borrower's authorized agent (the "**Process Agent**") to receive on its behalf service of legal process in any Action that BlaO may bring in respect of this Agreement or any other Financing Document to which the Borrower is a party in any court specified in Section 7.10.2 above.

7.10.5 The Borrower shall, for so long as this Agreement is in effect, maintain a duly appointed and authorized agent in the State of New York acceptable to BlaO to receive for and on its behalf service of summons, complaint or other legal process in any Action that BlaO may bring in the State of New York in respect of this Agreement or any other Financing Document to which the Borrower is a party and shall keep BlaO advised of the identity and location of such agent.

BlaO Loan Agreement

CONFIDENTIAL

7.10.6 The Borrower further irrevocably consents that, if for any reason the Borrower has no authorized agent for service of process in the State of New York, then service of process may be made out of the courts referred to in Section 7.10.2 by mailing copies thereof by registered United States of America mail to the Borrower at its address specified in Section 7.1 (*Notices*). BlaO shall also send the Borrower by email a copy of any such process.

7.10.7 Service of process in the manner provided in this Section 7.10 in any Action shall be deemed personal service, accepted by the Borrower as such, and shall be valid and binding upon the Borrower for all the purposes of any such Action.

7.10.8 The Borrower irrevocably waives, to the fullest extent permitted by Applicable Law: (i) any objection that it may now or hereafter have to the laying of venue of any Action brought in any court referred to in this Section 7.10; (ii) any claim that any such Action brought in any such court has been brought in an inconvenient forum; and (iii) its right of removal of any matter commenced by BlaO in the courts of the State of New York to any court of the United States of America.

7.10.9 To the extent that the Borrower may, in any Action brought in any of the courts referred to in Section 7.10.2, a court of the Borrower's Country or elsewhere arising out of or in connection with this Agreement, the Notes or any other Financing Document to which it is a party, be entitled to the benefit of any provision of law requiring BlaO in such Action to post security for the costs of the Borrower or to post a bond or to take similar action, the Borrower hereby irrevocably waives such benefit to the fullest extent now or hereafter permitted under the Applicable Law of the jurisdiction in which such court is located.

7.10.10 To the extent that the Borrower may be entitled in any jurisdiction to claim immunity for itself or its Property from any suit, execution, attachment (whether provisional or final, in aid of execution, before judgment or otherwise) or other legal process or to the extent that in any jurisdiction that immunity (whether or not claimed) may be attributed to it or its Property, the Borrower irrevocably agrees not to claim and irrevocably waives such immunity to the fullest extent permitted now or in the future by the laws of such jurisdiction.

7.10.11 TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, THE BORROWER HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY AND ALL RIGHTS TO DEMAND A TRIAL BY JURY IN ANY ACTION, SUIT OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER FINANCING DOCUMENT TO WHICH THE BORROWER IS A PARTY OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

7.10.12 The parties have participated jointly in the negotiation and drafting of this Agreement and the other Financing Documents. The Borrower expressly acknowledges that it has had the opportunity to retain and consult with counsel of its choice admitted under the laws of the State of New York and that it has elected not to retain such counsel in connection with the negotiation and drafting of this Agreement and each other Financing Document governed by New York law. If an ambiguity or question of intent or interpretation arises, this Agreement and the other Financing Documents shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Agreement or any other Financing Document, the relative bargaining power of the parties or the Borrower's failure to retain counsel admitted under the laws of the State of New York.

BlaO Loan Agreement

CONFIDENTIAL

**Section 7.11 Set-Off.**

In addition to any rights and remedies of BlaO provided by Applicable Law, BlaO shall have the right upon any Obligation becoming due and payable by the Borrower (whether at stated maturity, by acceleration or otherwise) to set-off, appropriate and apply against any Obligation any deposits in any currency, and any other credits, indebtedness or claims in any currency, at any time held or owing by BlaO to or for the credit of the Borrower.

**Section 7.12 Entire Agreement.**

This Agreement and the other Financing Documents represent the final and complete agreement of the parties hereto with respect to the BlaO Loan, and all prior negotiations, representations, understandings, writings and statements of any nature with respect thereto are hereby superseded in their entirety by the terms of this Agreement and the other Financing Documents.

**Section 7.13 No Third-Party Beneficiary.**

Except as otherwise expressly provided in this Agreement, nothing contained in this Agreement shall be construed to create any right in, duty to, standard of care with respect to, or any liability to any Person who is not a party to this Agreement.

**Section 7.14 Survival.**

All representations and warranties made in this Agreement, in any other Financing Document and in any document, certificate or statement delivered pursuant hereto or in connection herewith and Section 2.6 (*Currency and Place of Payment*), Section 2.9 (*Taxes*), Section 2.12 (*Payment of Fees, Costs and Expenses*), Section 7.3 (*Indemnity; Consequential Damages*), and Section 7.10 (*Applicable Law and Jurisdiction*), together with any related provisions in Article 1 (*Definitions; Interpretation*) and definitions in <u>Annex 1</u> (*Definitions*), shall survive and remain in full force and effect regardless of the consummation of the transactions contemplated hereby, the repayment in full or expiration or termination of the BlaO Loan or the termination of this Agreement or any other Financing Document or any provision hereof or thereof.

**Section 7.15 Term of Agreement.**

This Agreement shall continue in force until the date on which BlaO is satisfied that (i) all amounts outstanding under the Financing Documents have been indefeasibly paid and discharged in full and (ii) BlaO is under no obligation to make any further Disbursement under this Agreement or any other Financing Document.

**(Signature pages follow)**

BlaO Loan Agreement

CONFIDENTIAL

**IN WITNESS WHEREOF**, the parties, acting through their duly Authorized Representatives, have caused this Agreement to be signed in their respective names, on the date first above written.

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| | |
|:---|:---|
| **MERQUEO S.A.S.**, | **MERQUEO S.A.S.**, |
| **as Borrower** | **as Borrower** |
| By: | /s/ Miguel Mc Allister |
| Name: | Miguel Mc Allister Reyes |
| Title: | CEO |

---

BlaO Loan Agreement

CONFIDENTIAL

**Blue like an Orange Sustainable Capital - Latin America Holdings II S.A.R.L.<br> as lender of the BlaO Loan**

---

| | |
|:---|:---|
| By: | /s/ Bertrand Badre |
| Name: | Bertrand Badre |
| Title: | Chief Executive Officer - Partner |
| By: | /s/ Emmanuelle Yannakis |
| Name: | Emmanuelle Yannakis |
| Title: | Chief Financial Officer - Partner |

---

BlaO Loan Agreement

CONFIDENTIAL

**ANNEX 1**

**DEFINITIONS**

**General Definitions**.

"**Acceptable Auditor**" means any internationally recognized independent public accountants acceptable to BlaO.

"**Accounting Principles**" means International Financial Reporting Standards (formerly International Accounting Standards) (IFRS) promulgated by the International Accounting Standards Board (IASB), together with its pronouncements thereon from time to time, applied on a consistent basis.

"**Action**" means any action, claim, suit, other legal proceeding, arbitral proceeding, administrative proceeding, investigation or other claim.

"**Additional Interest**" has the meaning given to that term in Section 2.14 (*Additional Interest*).

"**Additional Interest Calculation Period**" means, in respect of the calculation of the Additional Interest, either (i) the six (6)-month period from January 1 through June 30 of the relevant Financial Year, or (ii) the relevant Financial Year, as the context may require.

"**Affiliate**" means, with respect to any Person, any other Person directly or indirectly Controlling, Controlled by or under common Control with such Person.

"**Agreement**" has the meaning provided in the preamble hereto.

"**Amendment to Merqueo Brazil's Organizational Documents**" means an amendment to the articles of association of Merqueo Brazil, duly executed by the Borrower and Merqueo International as shareholders of Merqueo Brazil, in which a provision will be included stating the existence of the Security over the shares of Merqueo Brazil pursuant to the terms and conditions of the relevant Security Document.

"**AML/CFT**" means anti-money laundering and combating the financing of terrorism.

"**Applicable Law**" means any applicable statute, code, rule, regulation, treaty having the force of law, judgment, common or customary law or similar governmental restriction or directive by any Authority, in each case, as amended, re-enacted or replaced from time to time.

"**Applicable Spread**" means nine percent (9.0%) per annum; *provided*, that beginning with the 2023 Financial Year, such rate shall be increased by one and one half percent (1.5%) for each Financial Year in which Consolidated EBITDA is not positive, with such increase effective as of the commencement of the first Interest Period beginning after the conclusion of each such Financial Year; *provided further*, that in no event shall such rate exceed twelve and one half percent (12.5%) per annum.

Annex 1-1

BlaO Loan Agreement

CONFIDENTIAL

"**Applicable Term SOFR**" means Term SOFR published by the Term SOFR Administrator on the relevant Interest Rate Determination Date and corresponding to the prevailing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) one-month
 Term SOFR, if the period from the relevant Interest Payment Date to the next Interest Payment
 Date is between one (1) and sixty (60) days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) three-month
 Term SOFR, if the period from the relevant Interest Payment Date to the next Interest Payment
 Date is between sixty-one (61) and one hundred thirty-five (135) days; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) six-month
 Term SOFR, if the period from the relevant Interest Payment Date to the next Interest Payment
 Date is more than one hundred and thirty-five (135) days;

*provided* that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) when
 determining Applicable Term SOFR for the last Interest Period of the BlaO Loan, the reference
 period for Applicable Term SOFR shall be the same as the reference period for the preceding
 Interest Period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if
 as of 5:00 p.m. (New York City time) on any Interest Rate Determination Date, Term SOFR for
 the relevant tenor has not been published by the Term SOFR Administrator and a Benchmark
 Replacement Date with respect to Applicable Term SOFR has not occurred, then Applicable Term
 SOFR will be the Term SOFR for such tenor as published by the Term SOFR Administrator on
 the first preceding Business Day for which such Term SOFR was so published, so long as such
 first preceding Business Day is not more than three (3) Business
Days prior to such Interest Rate Determination Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if
 Applicable Term SOFR determined as provided above is in any event ever less than the Floor,
 then Applicable Term SOFR shall be deemed to be the Floor.

"**Auditor**" means Ernst & Young or any replacement Acceptable Auditor appointed by the Borrower as its auditor from time to time in accordance with this Agreement.

"**Authority**" means any supranational, national, regional or local government or political subdivision thereof, or any governmental, administrative, executive, legislative, arbitral, regulatory, fiscal or judicial body, department, commission, authority, tribunal or agency, or any superintendency, monetary authority or central bank, including the supervisory authority for banking and other financial institutions, and any Person, whether or not government-owned and howsoever constituted or called, that exercises the functions of any such entity or claims to have jurisdiction over such matters.

"**Authorization**" means any consent, license or approval (howsoever evidenced), registration, filing, notarization, certificate or exemption from, by or with any Authority, and all corporate, Shareholders', creditors' and any other third-party approvals or consents.

"**Authorized Representative**" means, as to any Person, any individual who is duly authorized by such Person to act for such Person, or with respect to financial matters, the chief financial officer or treasurer of such Person, and in the case of the Borrower or any Guarantor, in addition to the foregoing, an officer duly appointed to act on the Borrower or such Guarantor's behalf under corporate documents duly registered with the competent Authority in the Borrower's Country or other relevant jurisdiction and any Person whose name and specimen signature appear on the Certificate of Incumbency and Authority most recently delivered by the Borrower to BlaO (including, for the avoidance of doubt, in the case of Merqueo Mexico, an attorney-in-fact duly appointed and authorized).

"**Benchmark**" means, initially, Applicable Term SOFR; *provided,* that if a Benchmark Transition Event has occurred with respect to Applicable Term SOFR or the then-current Benchmark, then "Benchmark" means the applicable Benchmark Replacement to the extent that such Benchmark Replacement has replaced such prior benchmark rate pursuant to Section 2.16 (*Benchmark Replacement Setting*).

Annex 1-2

BlaO Loan Agreement

CONFIDENTIAL

"**Benchmark Replacement**" means the sum of: (i) the alternate benchmark rate that has been selected by BlaO giving due consideration to (a) any selection or recommendation of a replacement rate or the mechanism for determining such a rate by the Relevant Governmental Body at such time or (b) any evolving or then-prevailing market convention for determining a rate of interest for Dollar-denominated syndicated or bilateral credit facilities; and (ii) the Benchmark Replacement Adjustment; *provided* that, if at any time the Benchmark Replacement as so determined would be less than zero, the Benchmark Replacement will be deemed to be zero for the purposes of this Agreement and any other Financing Document.

"**Benchmark Replacement Adjustment**" means, for each applicable Interest Period, the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by BlaO giving due consideration to (i) any selection or recommendation of a replacement rate or the mechanism for determining such a rate by the Relevant Governmental Body at such time or (ii) any evolving or then-prevailing market convention for determining a rate of interest for Dollar-denominated syndicated or bilateral credit facilities.

**"Benchmark Replacement Conforming Changes**" means, with respect to any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of Interest Period, the timing and frequency of determining rates and making payments of interest and other administrative matters) that BlaO decides may be appropriate to reflect the adoption and implementation of such Benchmark Replacement and to permit the administration thereof by BlaO in a manner substantially consistent with market practice (or, if BlaO decides that adoption of any portion of such market practice is not administratively feasible or if BlaO determines that no market practice for the administration of the Benchmark Replacement exists, in such other manner of administration as BlaO decides is reasonably necessary in connection with the administration of the BlaO Loan and this Agreement).

"**Benchmark Replacement Date**" means the date on which a Benchmark Replacement becomes effective pursuant to Section 2.16 (*Benchmark Replacement Setting*).

"**Benchmark Transition Event**" means the occurrence of one or more of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a
 public statement or publication of information by the regulatory supervisor for the administrator
 of the Benchmark announcing that the Benchmark is no longer representative;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 administrator of the Benchmark permanently or indefinitely ceases to provide the Benchmark; *provided,* that, at the time of such cessation, there is no successor administrator
 that will continue to provide the Benchmark; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the
 determination by BlaO that, in anticipation of the withdrawal of regulator support for the
 Benchmark, the use of one or more alternative benchmarks has become conventional in the market
 for Dollar-denominated floating rate syndicated or bilateral credit facilities.

"**BlaO**" has the meaning provided in the preamble hereto.

"**BlaO Loan**" has the meaning given to such term in in Section 2.1.1 (*The BlaO Loan*).

"**BlaO Loan Commitment**" has the meaning given to such term in in Section 2.1.1 (*The BlaO Loan*).

"**Board of Directors**" means, as to any Person, the board of directors of such Person or such other body performing similar functions with respect to such Person.

"**Borrower**" has the meaning provided in the preamble hereto.

Annex 1-3

BlaO Loan Agreement

CONFIDENTIAL

"**Borrower's Country**" means the Republic of Colombia.

"**Brazil**" means the Federative of Republic of Brazil.

"**Business**" means the business of maintaining one or more websites for the online ordering and physical delivery of grocery goods in Latin America.

"**Business Day**" means (i) any day that is not a Saturday, Sunday or other day that is a legal holiday under the laws of the State of New York or the laws of the Republic of Colombia, or is a day on which banking institutions in New York or Colombia are authorized or required by Applicable Law to close, and (ii) solely for the purpose of determining Applicable Term SOFR, a U.S. Government Securities Business Day.

"**Certificate of Incumbency and Authority**" means a certificate provided to BlaO by the Borrower in the form of <u>Exhibit 5</u> (*Form of Borrower's Certificate of Incumbency and Authority*).

"**Change in Law**" means the occurrence, after the Effective Date (including any circumstance that is retroactive to a date prior to the Effective Date), of any of the following: (i) the adoption or taking effect of any law, rule, regulation or treaty, (ii) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any Authority or (iii) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any Authority; *provided*, that notwithstanding anything herein to the contrary, (a) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith and (b) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a "Change in Law", regardless of the date enacted, adopted or issued.

"**Change of Control**" means the occurrence of any of the following: (i) any Person holds, of record or beneficially, and possess the ability to vote (whether directly or indirectly) more than fifty percent (50%) of each class of outstanding Share Capital entitled to voting rights with respect to the Borrower free and clear of all Liens; (ii) any Person acquires Control of the Borrower; or (iii) the Borrower enters into any management, partnership, profit-sharing, joint-venture or royalty agreement or other similar agreement whereby its business or operations or that of its Subsidiaries are managed by, or a significant part of its or their net income or profits are shared with, any Person.

"**Colombian Pesos**" means the lawful currency of the Borrower's Country.

"**Commitment Fee**" has the meaning given to that term in Section 2.12.1(i) (*Fees*).

"**Commitment Termination Date**" means the earliest of: (i) the first anniversary of the Effective Date; (ii) the date the BlaO Loan Commitment is cancelled in full in accordance with the terms of Section 2.10 (*Suspension of Disbursements; Cancellation of BlaO Loan Commitment*); (iii) the date of any prepayment of any part of the BlaO Loan; and (iv) any other date on which the BlaO Loan Commitment and the Borrower's right to request further Disbursements are terminated in accordance with the terms of this Agreement; *provided*, that in the case of the Interest Reserve Amount only, if the Commitment Termination Date occurs pursuant to clauses (i) through (iv) above on any date on which any principal amount of the BlaO Loan remains outstanding and is not due and owing, then the Commitment Termination Date for the Interest Reserve Amount shall instead be the date falling sixty (60) days after the expiration of the Interest Reserve Period.

Annex 1-4

BlaO Loan Agreement

CONFIDENTIAL

"**Competing Business**" means any entity satisfying both of the following conditions: (a) one or any of its operating businesses is an online grocery retailer or grocery service provider; and (b) its business operations are primarily located in Latin America (including, for the avoidance of doubt, Mexico).

"**Control**" means, with respect to any Person, any other Person having the power, directly or indirectly, (i) to vote more than fifty percent (50%) of the securities having ordinary voting power including for the election of directors of such Person; (ii) to appoint the majority of the administrators of such Person; (iii) to appoint a majority of the members of such Person's Board of Directors; or (iv) to establish, direct or cause the direction of the management or policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; ("**Controlling**" and "**Controlled**" have corresponding meanings).

"**Corporate Governance Action Plan**" means the corporate governance action plan(s) developed by the Borrower, a copy of which is attached as <u>Schedule 8</u> (*Corporate Governance Action Plan*).

"**Costs**" means any costs, expenses or losses incurred by BlaO in connection with the BlaO Loan, with any determinations thereof being made by BlaO, including: (i) any breakage of funds, termination costs and other unwinding costs, if positive, incurred by BlaO, taking into account the principal repayment schedule, the first scheduled repayment date for the BlaO Loan and the applicable Loan Final Maturity Date for the BlaO Loan; (ii) interest paid and/or payable to cover any unpaid amount; (iii) broken funding and redeployment costs; (iv) any foreign exchange loss and/or hedge liquidation costs; and (v) any loss, premium, penalty and expense that may be incurred in liquidating or employing deposits of, and/or borrowings from, third parties in order to fund and/or maintain all or any part of the BlaO Loan.

"**Debt**" means, with respect to any Person, the aggregate (as of the date of calculation) of all such Person's obligations (whether actual or contingent) to pay or repay money, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all
 Financial Debt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any
 credit to such Person from a supplier of goods or services provided by deferral of the purchase
 price or under any installment purchase or other similar arrangement in respect of goods
 or services (except trade accounts in the ordinary course of business payable within ninety
 (90) days);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) all
 liabilities of such Person (actual or contingent) under any conditional sale or a transfer
 with recourse or obligation to repurchase, including by way of discount or factoring of book
 debts or receivables;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) all
 obligations of others secured by (or for which the holder of such obligation has an existing
 right, contingent or otherwise, to be secured by) any Lien on Property owned or acquired
 by such Person, whether or not the obligation secured thereby has been assumed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the
 amount of any obligation in respect of any guarantee or indemnity for any of the foregoing
 items (other than Financial Debt) incurred by any other Person.

"**Default**" means any event or condition that constitutes an Event of Default or any event or condition that, but for notice, lapse of time or the making of a determination, or any combination thereof, would constitute an Event of Default.

Annex 1-5

BlaO Loan Agreement

CONFIDENTIAL

"**Derivative Transaction**" means any swap agreement, cap agreement, collar agreement, futures contract, forward contract, option contract, or similar arrangement with respect to interest rates, currencies or commodity prices.

"**Disbursement**" means any disbursement of the BlaO Loan.

"**Disbursement Account**" means the bank account in the Republic of Panama and corresponding wire instructions provided in <u>Exhibit 1</u> (*Form of Disbursement Request*) or any other bank account notified by the Borrower to BlaO on or prior to the delivery of any Disbursement Request.

"**Disbursement Date**" means the date on which the proceeds of a Disbursement are released by BlaO to the Borrower, which shall be a Business Day prior to the Commitment Termination Date on which BlaO is open for business.

"**Disbursement Request**" means a request for a Disbursement delivered by the Borrower to BlaO substantially in the form of <u>Exhibit 1</u> (*Form of Disbursement Request*).

"**Dollars**" and the sign "**$**" mean the lawful currency of the United States of America.

"**Effective Date**" has the meaning provided in the preamble hereto.

"**Equity Rights**" means, in respect of a Person (other than an individual) any subscriptions, subscription bonuses, options, warrants, commitments, preemptive rights or agreements of any kind (including any shareholders' or voting trust agreements) for the issuance, subscription, sale, registration or voting of, or any securities convertible into, any Share Capital of such Person.

"**Event of Default**" means any event specified in Section 6.1 (*Events of Default*).

"**Fee Letter**" means each fee letter agreement to be entered into between each Senior Lender and the Borrower setting forth the fees payable in respect of the transactions contemplated herein and the other Financing Documents.

"**Financial Covenants**" has the meaning provided in Section 5.1.13 (*Financial Covenants*).

"**Financial Debt**" means all of the Borrower's and its Subsidiaries' obligations in respect of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) borrowed
 money, including the BlaO Loan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 outstanding principal amount of any bonds, notes, loan stock, commercial paper, acceptance
 credits, debentures and bills or promissory notes drawn, accepted, endorsed or issued by
 the Borrower or any Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) non-contingent
 obligations of the Borrower or any Subsidiary to reimburse any other Person in respect of
 amounts paid under a letter of credit, bank guarantee or similar instrument (excluding any
 such letter of credit or similar instrument issued for the Borrower's or any Subsidiary's
 account in respect of trade accounts incurred and payable in the ordinary course of business
 to trade creditors within ninety (90) days of the date that they are incurred and which are
 not overdue);

Annex 1-6

BlaO Loan Agreement

CONFIDENTIAL

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the
 amount of any obligation in respect of any capitalized leases to the extent such obligation
 is required to be capitalized and accounted for as a financial obligation of capital lease
 on a balance sheet of such Person under the Accounting Principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) amounts
 raised under any other transaction having the commercial effect of a borrowing and that would
 be classified as a borrowing (and not as an off-balance sheet financing) under the Accounting
 Principles including under leases or similar arrangements entered into primarily as a means
 of financing the asset leased;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the
 amount of the Borrower's and its Subsidiaries' obligations under any Derivative
 Transactions entered into in connection with the protection against or benefit from fluctuation
 in any rate or price (but only the net amount owing by the Borrower or its Subsidiaries after
 marking the relevant derivative transactions to market);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) any
 premium payable on a redemption or replacement of any of the foregoing items; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) the
 amount of any obligation in respect of any guarantee or indemnity for any of the foregoing
 items incurred by any other Person.

"**Financial Quarter**" means each period commencing on the day after a Financial Quarter Date and ending on the immediately succeeding Financial Quarter Date.

"**Financial Quarter Date**" means each March 31, June 30, September 30 and December 31.

"**Financial Year**" means the accounting year of the Borrower and its Subsidiaries commencing each year on January 1 and ending on the following December 31 or such other period as the Borrower, with BlaO's consent, designates as its accounting year.

"**Financing Documents**" means, collectively:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) this
 Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 IDB Invest Loan Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) each
 Note;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the
 Security Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the
 Guarantee Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the
 IDB Invest Guarantee Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) the
 fee letters between the Borrower and each Senior Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) all
 documents relating to the BlaO Loan or the IDB Invest Loan that are entered into after the
 Effective Date and designated as a Financing Document by BlaO and the Borrower or IDB Invest
 and the Borrower; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) all
 other documents and certificates required to be delivered from time to time hereunder and
 thereunder.

Annex 1-7

BlaO Loan Agreement

CONFIDENTIAL

"**First Repayment Date**" means the first Interest Payment Date immediately following the date falling thirty (30) months after the first Disbursement Date.

"**Floor**" means zero percent (0%) per annum.

"**Founders**" means, together, Miguel Mc Allister, José Guillermo Calderón, Pablo González, and Sebastián Noguera.

"**Guarantee Agreement**" means an agreement entered into, or to be entered into, between the Guarantors and BlaO relating to the Guarantors' primary, unconditional and irrevocable guarantee in favor of BlaO of all of the Borrower's payment obligations to BlaO under the Financing Documents.

"**Guarantors**" means Merqueo Brazil, Merqueo International, and Merqueo Mexico.

"**IDB**" means the Inter-American Development Bank, an international organization established by the Agreement Establishing the Inter-American Development Bank among its member countries.

"**IDB Group**" means IDB Invest, IDB and the Multilateral Investment Fund.

"**IDB Group List of Sanctioned Firms and Individuals**" means the list of firms and individuals listed in, and accessible at: http://www.iadb.org/en/topics/transparency/integrity-at-the-idb-group/sanctioned-firms-and-individuals,1293.html or any successor website or location.

"**IDB Invest**" means the Inter-American Investment Corporation, an international organization established by the Agreement Establishing the Inter-American Investment Corporation among its member countries as lender of the IDB Invest Loan.

"**IDB Invest Guarantee Agreement**" means an agreement entered into, or to be entered into, between the Guarantors and IDB Invest relating to the Guarantors' primary, unconditional and irrevocable guarantee in favor of IDB Invest of all of the Borrower's payment obligations to IDB Invest under the Financing Documents.

"**IDB Invest Loan**" means a loan in an aggregate amount of up to the IDB Invest Loan Commitment to be funded by IDB Invest or, as the context may require, the outstanding principal amount thereof.

"**IDB Invest Loan Agreement**" means the agreement to be entered into between the Borrower and IDB Invest on or about the date hereof providing for the IDB Invest Loan Commitment.

"**IDB Invest Loan Commitment**" means the four million Dollar ($4,000,000) loan commitment to be made by IDB Invest to the Borrower pursuant to the IDB Invest Loan Agreement.

"**IDB Invest Members**" means the member countries of IDB Invest listed in <u>Schedule 1</u> (*Member Countries of IDB Invest*).

"**IDB Invest Put Option Agreement**" means the Put Option Agreement dated as of June 4, 2021 among IDB Invest, IDB Invest acting as agent for IDB as administrator of the Clean technology Fund II, the Borrower and the Guarantors.

Annex 1-8

BlaO Loan Agreement

CONFIDENTIAL

"**Increased Costs**" means the amount certified in an Increased Costs Certificate to be the net incremental costs of, or reduction in return to, BlaO in connection with making or maintaining the BlaO Loan that results from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any
 Change in Law; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any
 compliance with any request from, or requirement of, any central bank or other monetary or
 other Authority; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if
 the Interest Rate is calculated in accordance with Section 2.15 (*Market Disruption*),
 Increased Costs shall also include any difference between the Market Disruption Base Rate
 and the actual cost to BlaO of making, funding or maintaining the BlaO Loan for the relevant
 Interest Period;

that in any such case, subsequent to the Effective Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) imposes,
 modifies or makes applicable any reserve, special deposit, compulsory loan, insurance charge
 or similar requirements against Property of, or deposits with or for the account of, or credit
 extended by BlaO;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) imposes
 a cost on BlaO as a result of its having made or committed to make the BlaO Loan or reduces
 the rate of return on the overall capital of BlaO that it would have been able to achieve
 had it not made or committed to make the BlaO Loan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) subjects
 BlaO to any Tax in respect of the BlaO Loan (other than a change in taxation of the overall
 net income of BlaO imposed by a jurisdiction to which BlaO is subject); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) imposes
 on BlaO any other cost or condition regarding the making or maintaining of the BlaO Loan.

"**Increased Costs Certificate**" means a certificate furnished by BlaO to the Borrower certifying: (a) the circumstances giving rise to the Increased Costs; (b) that the costs of BlaO have increased or its rate of return has been reduced; (c) the amount of Increased Costs; and (d) that BlaO has exercised reasonable efforts to minimize or eliminate the relevant increase or reduction; *provided*, that BlaO shall not be obliged to disclose any information that any Lender considers to be confidential in providing such certificate.

"**Indemnified Liabilities**" has the meaning provided in Section 7.3 (*Indemnity; Waiver of Consequential Damages*).

"**Indemnified Persons**" has the meaning provided in Section 7.3 (*Indemnity; Waiver of Consequential Damages*).

"**Insolvency Event**" means any of the following: (i) a court declares the Borrower or any Subsidiary bankrupt or insolvent; (ii) a petition seeking reorganization, intervention, surveillance, moratorium, liquidation, arrangement, adjustment, *concurso* or composition of or in respect of the Borrower or any Subsidiary under any Applicable Law is properly filed; (iii) a court appoints a receiver, liquidator, trustee, sequestrator, assignee, *síndico*, *interventor* (or similar official) of the Borrower or any Subsidiary or of any substantial part of its Property or Debt or orders the winding up, dissolution, re-organization or liquidation of its affairs; (iv) the Borrower or any Subsidiary itself takes any action to institute proceedings to be adjudicated bankrupt or insolvent, or consents to the commencement of bankruptcy or insolvency proceedings against it, or files a petition or answer or consent seeking reorganization or similar relief under any Applicable Law, or consents to the filing of any such petition or to the appointment of a receiver, liquidator, trustee, sequestrator, assignee, *síndico*, *interventor* (or similar official) of the Borrower or any Subsidiary or of any substantial part of its respective Property or Debt or fails to timely and appropriately contest any proceeding or petition described in (i), (ii) or (iii); (v) the Borrower or any Subsidiary makes a general assignment for the benefit of creditors; (vi) the Borrower or any Subsidiary admits in writing its inability or otherwise becomes unable to pay its debts generally as they become due; (vii) the Borrower or any Subsidiary is or becomes subject to judicial or extra-judicial reorganization or to any temporary administration or intervention by any Authority; or (viii) any other event occurs that under any Applicable Law would have an effect similar to any of those events listed above.

Annex 1-9

BlaO Loan Agreement

CONFIDENTIAL

"**Intellectual Property**" means all patents, letters patent (including applications, improvements, prolongations, extensions, and rights to apply therefor), logos, labels, designs, (whether registered or unregistered), copyrights, design rights, trademarks, and service marks (whether registered or unregistered), utility models, company names, business names, trade names, processes, know-how, confidential information, trade secrets, formulas, inventions, computer software, programs, and systems (including the benefit of any licenses, permits, consents or franchises relating to any of the above, and including applications, improvement, prolongations, extensions, and rights to apply therefor), and other similar rights, and all registrations with respect to any of the foregoing, whether owned, leased or licensed, or otherwise used by the Borrower or any of its Subsidiaries, and all fees, royalties, or other rights derived therefrom, or incidental thereto, in any part of the world. Notwithstanding the foregoing, "Intellectual Property" shall not include (i) non-exclusive software licenses and (ii) non-exclusive licenses that are not material to the operation of the business of the Borrower or any of its Subsidiaries.

"**Intercreditor Agreement**" means an agreement of that name entered into, or to be entered into, between BlaO and IDB Invest.

"**Interest Payment Date**" means the 15th day of each April and October of each year.

"**Interest Period**" means each six (6)-month period beginning on an Interest Payment Date and ending on the next following Interest Payment Date, except for the first period following each Disbursement for which it shall mean the period beginning on such Disbursement Date and ending on the next following Interest Payment Date.

"**Interest Rate**" means the rate of interest payable on the outstanding principal amount of the BlaO Loan from time to time, determined in accordance with Section 2.13 (*BlaO Loan Interest*).

"**Interest Rate Determination Date**" means the second (2nd) Business Day prior to the commencement of each Interest Period; *provided*, that the Interest Rate Determination Date for the first Interest Period following each Disbursement shall be the second (2nd) Business Day prior to the relevant Disbursement Date.

"**Interest Reserve Amount**" has the meaning provided in Section 2.2.4(i)(a) (*Disbursement Procedure*).

"**Interest Reserve Period**" has the meaning provided in Section 2.2.4(i) (*Disbursement Procedure*).

"**Internationally Recognized Sanctions Lists**" means sanctions lists maintained by the Office of Foreign Assets Control (OFAC) of the United States Department of Treasury, the United Kingdom of Great Britain and Northern Ireland, the United Nations and the European Union.

"**Key Performance Indicators**" means the key performance indicators listed in <u>Schedule 7</u> (*Key Performance Indicators*).

"**Lien**" means any mortgage, pledge, charge, assignment, hypothecation, lien, security interest, title retention, preferential right (arising by operation of law or otherwise), trust arrangement, right of set-off, counterclaim or banker's lien, privilege or priority of any kind having the effect of security, including any designation of loss payees or beneficiaries or any similar arrangement under any insurance policy.

Annex 1-10

BlaO Loan Agreement

CONFIDENTIAL

"**List of Excluded Activities**" means the list of activities not financed by BlaO set forth in <u>Schedule 2</u> (*List of Excluded Activities*).

"**Loan Final Maturity Date**" means the date that occurs on the seventh (7th) anniversary of the Effective Date or, if such date is not an Interest Payment Date, then the next preceding Interest Payment Date.

"**Mandatory Prepayment Event**" has the meaning provided in Section 2.4.2 (*Mandatory Prepayments*).

"**Market Disruption Base Rate**" means an interest rate per annum equal to (i) the cost of funds of BlaO, determined in accordance with Section 2.15 (*Market Disruption*) or (ii) any other rate applicable pursuant to either Section 2.15.2(i) or Section 2.15.2(ii) as determined by BlaO.

"**Market Disruption Event**" has the meaning provided in Section 2.15.1 (*Market Disruption*).

"**Material Adverse Effect**" means a material adverse effect on: (i) the business, Property, liabilities, operations or condition, financial or otherwise, of the Borrower and its Subsidiaries taken as a whole; (ii) the ability of the Borrower and its Subsidiaries taken as a whole to perform its obligations under any Financing Document to which it is a party; (iii) the rights or remedies of BlaO under the Financing Documents; or (iv) the validity or enforceability of any material provision of any Financing Document; or (v) the perfection, priority, enforceability or value of the Security.

"**Merqueo Brazil**" means Merqueo Comércio Varejista e Intermediação de Negócios Ltda., a company organized and existing under the laws of Brazil.

"**Merqueo International**" means Merqueo International S.A.S., a simplified stock corporation organized and existing under the laws of the Borrower's Country.

"**Merqueo Mexico**" means Merqueo S.A. de C.V., a company duly incorporated under the laws of Mexico, a company incorporated under the laws of Mexico.

"**Mexico**" means the United Mexican States.

"**Most Favored Lender Provisions**" has the meaning provided in Section 5.1.16 (*Most Favored Lender*).

"**Notes**" has the meaning provided in Section 2.17.1 (*Initial Notes*).

"**Obligations**" means collectively:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 unpaid amount of principal of, and interest and Additional Interest on, the BlaO Loan (including
 default interest and ordinary interest accruing after the maturity of the BlaO Loan and after
 the filing of any petition in bankruptcy, or the commencement or occurrence of any Insolvency
 Event relating to the Borrower); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all
 expenses, Costs, fees and other obligations and liabilities of the Borrower under this Agreement
 or any other Financing Document to BlaO.

"**Other Taxes**" has the meaning provided in Section 2.9.1 (*Taxes*).

"**Permitted Liens**" means in respect of the Borrower and its Subsidiaries:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Liens
 created under or pursuant to any Security Document;

Annex 1-11

BlaO Loan Agreement

CONFIDENTIAL

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any
 Lien arising from any tax, assessment or other Lien arising by operation of law while the
 indebtedness underlying that Lien is not yet due or, if due, is being contested in good faith
 by appropriate proceedings and for the payment of which reserves, bonds, insurance or other
 security has been provided in an amount sufficient to promptly pay in full any amounts that
 the Borrower or the relevant Subsidiary may be ordered to pay on final determination of any
 such proceedings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the
 naming of BlaO as loss payee, beneficiary, or additional insured under the Borrower's
 and its Subsidiaries' insurance policies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the
 naming of additional insureds under the Borrower's and its Subsidiaries' insurance
 policies in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) mechanics',
 materialmens', construction and other similar Liens arising in the ordinary course
 of business that either (a) are not overdue for a period of more than ninety (90) days or
 (b) are for amounts being contested in good faith and by appropriate proceedings, so long
 as a bond or other security instrument has been posted or other adequate provision for payment
 thereof has been provided in such manner and amount as required by the Accounting Principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Liens,
 pledges or deposits under worker's compensation, unemployment insurance or other social
 security legislation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) easements,
 rights-of-way, restrictions and other similar encumbrances incurred in the ordinary course
 of business and encumbrances consisting of zoning restrictions, licenses, restrictions on
 the use of property or minor imperfections in title that could not reasonably be expected
 to have a Material Adverse Effect; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) any
 Lien securing a Debt on any asset of the Borrower in existence on the date of this Agreement
 which Lien and Debt are described in <u>Schedule 4</u> (*Permitted Liens*) or any Lien
 securing an extension, renewal or refinancing of such Debt; *provided* that (a) such
 Lien is created over the assets that secured such Debt and (b) the principal amount of Debt
 secured by such Lien prior to such extension, renewal or refinancing is not increased, other
 than with respect to reasonable costs, fees and expenses incidental to such extension, renewal,
 or refinancing.

"**Person**" means any individual or any company, partnership, joint venture, firm, corporation, voluntary association, trust, enterprise, unincorporated organization or other corporate body or any Authority or any other entity whether acting in an individual, fiduciary or other capacity, including that Person's successors and permitted assigns.

"**PIK Fee**" has the meaning provided in Section 2.12.1(ii) (*Fees*).

"**Process Agent**" has the meaning provided in Section 7.10.4 (*Applicable Law and Jurisdiction*).

Annex 1-12

BlaO Loan Agreement

CONFIDENTIAL

"**Prohibited Practice**" means any of the following: (i) impairing or harming, or threatening to impair or harm, directly or indirectly, any party or the property of the party to influence improperly the actions of a party (a "**Coercive Practice**"); (ii) an arrangement between two or more parties designed to achieve an improper purpose, including influencing improperly the actions of another party (a "**Collusive Practice**"); (iii) offering, giving, receiving, or soliciting, directly or indirectly, anything of value to influence improperly the actions of another party (a "**Corrupt Practice**"); (iv) any action or omission, including a misrepresentation, that knowingly or recklessly misleads, or attempts to mislead, a party in order to obtain a financial or other benefit or avoid an obligation (a "**Fraudulent Practice**"); (v) (a) destroying, falsifying, altering or concealing of evidence material to an IDB Group investigation or an investigation by BlaO, or making false statements to investigators with the intent to impede an IDB Group investigation or BlaO investigation; (b) threatening, harassing or intimidating any party to prevent it from disclosing its knowledge of matters relevant to an IDB Group investigation or BlaO investigation or from pursuing the investigation; or (c) acts intended to impede the exercise of the IDB Group's or BlaO's contractual rights of audit or inspection or access to information (each an "**Obstructive Practice**"); and (vi) the use of IDB Group or BlaO's financing or resources for an improper or unauthorized purpose, committed either intentionally or through reckless disregard (a "**Misappropriation**").

"**Property**" means any right or interest in or to assets or property of any kind whatsoever, whether real, personal or mixed and whether tangible or intangible.

"**Rate Setting Period**" has the meaning provided in Section 2.15.2(ii) (*Market Disruption*).

"**Receipt Account**" has the meaning provided in Section 2.6.1 (*Currency and Place of Payment*).

"**Relevant Authorization**" means each Authorization that is or may be at any time necessary under Applicable Law: (a) for making the BlaO Loan and each Disbursement; (b) material for the Borrower and each of its Subsidiaries to conduct its business as it is contemplated to be carried on; (c) for the purposes of the BlaO Loan to be carried out in accordance with the Financing Documents; (d) in connection with the execution, delivery, validity and enforceability of the Financing Documents and the performance by each party thereto of its obligations thereunder; (e) for the enforcement by BlaO of its rights and remedies under the Financing Documents; (f) for the remittance to BlaO or its assigns in Dollars of all monies payable under or with respect to the Financing Documents; and (g) for the BlaO Loan and the Borrower and its Subsidiaries to comply with Applicable Law and <u>Annex 2</u> (*Environmental and Social Provisions*).

"**Relevant Governmental Body**" means the Federal Reserve Board and/or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Federal Reserve Board and/or the Federal Reserve Bank of New York or any successor thereto.

"**Restricted Payment**" means (i) any dividend or distribution (whether in cash, Property or obligations) on, any other payment or deposit made on account of, any declaration of any dividend, distribution or similar payment in respect of, and the purchase, redemption, retirement or other acquisition of, any portion of the Borrower's Share Capital (other than in connection with IDB Invest's exercise of the put option under the IDB Invest Put Option Agreement) or Equity Rights in respect of the Borrower, including any dividends, distributions or other payments made or to be made by the Borrower to its Shareholders, Affiliates, or other Persons for or on account of capital reductions, repurchases or redemptions of outstanding stock, options or warrants, and investments in, and capital contributions, loans and advances to, the Borrower, and other similar payments in respect of Equity Rights; (ii) any payment, purchase, or retirement or other acquisition of any debt (whether or not subordinated), loan, account or other financial obligation owed to any Shareholder or Affiliate thereof (including any deposit or similar payment made to secure any such debt, loan, account or financial obligation); and (iii) any payment of development, management or operation fees to any Shareholder or Affiliate of the Borrower, except as set forth in the Founders' employment or services agreements.

"**Secured Property**" means all Property, and the products and proceeds thereof, from time to time subject, or purported to be subject, to the Security.

Annex 1-13

BlaO Loan Agreement

CONFIDENTIAL

"**Security**" means the first priority Liens created, or purported to be created, over all of the shares of each Subsidiary under the Security Documents to secure all of the Obligations and the corresponding obligations owed to IDB Invest in respect of the IDB Invest Loan.

"**Security Documents**" means: (i) all agreements relating to the Security; and (ii) all other notices, consents, acknowledgements and documents necessary or advisable to perfect the security interest of the Senior Lenders in the Secured Property, as each may be amended, modified, supplemented, renewed or restated.

"**Senior Lenders**" means BlaO, IDB Invest and their successors and assigns.

"**Senior Loans**" means the BlaO Loan and the IDB Invest Loan.

"**Share Capital**" means, as to any Person (other than an individual), all shares of capital stock of any class or other ownership interests of any kind, however called, in such Person, and any and all warrants, subscription bonus, convertible debentures or debt, options or other rights to purchase, subscribe or otherwise acquire title to any of the foregoing.

"**Shareholder**" means any Person that owns Share Capital of the Borrower.

"**SOFR**" means the secured overnight financing rate published by the SOFR Administrator on the SOFR Administrator's website, currently at http://www.newyorkfed.org, or any successor source identified by the SOFR Administrator from time to time.

"**SOFR Administrator**" means the Federal Reserve Bank of New York, as administrator of SOFR (or any successor administrator thereof from time to time).

"**SPAC Transaction**" means a transaction between or among the Shareholders and Rose Hill Acquisition Corporation (NASDAQ Ticker Symbol: ROSEU), a special purpose acquisition company (a "**SPAC**"), which results in the ownership of the Borrower's Share Capital being held directly or indirectly by such SPAC and such SPAC: (i) continues to be subject to reporting requirements under the U.S. Securities Exchange Act of 1934; and (ii) continues to have its Share Capital listed and publicly traded on the NASDAQ Stock Exchange.

"**Subsidiary**" means, with respect to any Person, any entity: (i) over fifty percent (50%) of whose Share Capital is owned, directly or indirectly, by that Person; (ii) for which that Person may nominate or appoint a majority of the members of the Board of Directors; or (iii) that is otherwise Controlled by that Person.

"**Tax Returns**" means all returns, declarations, reports, estimates, information returns, statements and other documents of, relating to, or required to be filed with any Authority in respect of Taxes.

"**Taxes**" means all present and future taxes, charges, fees, duties, contributions, withholding obligations or other assessments of whatsoever nature levied by any Authority, together with any interest, penalties, additions to tax or other liabilities imposed thereon by any Authority.

"**Term SOFR**" means the forward-looking term rate based on SOFR administered by the Term SOFR Administrator.

"**Term SOFR Administrator**" means CME Group Benchmark Administration Limited (or any successor administrator of a forward-looking term rate based on SOFR selected by BlaO from time to time in its sole discretion).

"**Transaction Taxes**" has the meaning provided in Section 2.9 (*Taxes*).

"**Unauthorized Share Transaction**" means any transaction affecting or changing the Share Capital held or to be acquired by any Person in the Borrower (whether directly or indirectly, through the ownership by such Person of Share Capital in any other Person) if (i) (a) such transaction or such Person violates, or would result in the Borrower violating, the Applicable Laws of the Borrower's Country, or (b) such Person is included in the Internationally Recognized Sanctions Lists or in the IDB Group List of Sanctioned Firms and Individuals and, (ii) such Person holds or would as a result of such transaction hold in aggregate in excess of five percent (5%) of the total Share Capital of the Borrower.

"**U.S. Government Securities Business Day**" means any day except for (i) a Saturday, (ii) a Sunday or (iii) a day on which the U.S. Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government securities.

"**Warehouse Leases**" means the warehouse leases listed in <u>Schedule 5</u> (*Warehouse Leases*).

Annex 1-14

BlaO Loan Agreement

CONFIDENTIAL

**<u>Financial Definitions</u>**

"**Adjusted EBITDA**" means, for any period of determination and with respect to operations in Colombia, Mexico and Brazil, whether conducted directly or indirectly through the Guarantors or any other Subsidiaries of the Borrower, determined on a Consolidated Basis (but excluding operations in any other jurisdictions) in accordance with the Accounting Principles, the sum (determined without duplication) of: (i) the Consolidated Operating Income for such period *plus* (ii) depreciation and amortization to the extent deducted when determining Consolidated Operating Income for such period *plus/minus* (iii) other applicable items, such as other Non-Cash Items not previously accounted for, if any, to the extent deducted/added when determining Consolidated Operating Income for such period.

"**Capital Contributions**" means, as of any Determination Date and in respect of the Determination Period ending on such Determination Date, any increase of debt and/or equity during such Determination Period of the Borrower and its Subsidiaries under the Accounting Principles on a Consolidated Basis.

"**Capitalized Research & Development**" means, as of any Determination Date and in respect of the Determination Period ending on such Determination Date, any research and development costs capitalized during such Determination Period of the Borrower and its Subsidiaries under the Accounting Principles on a Consolidated Basis.

"**Cash Flow from Financing Activities**" means, as of any Determination Date and in respect of the Determination Period ending on such Determination Date, the amount of cash flow from financing activities during such Determination Period of the Borrower and its Subsidiaries under the Accounting Principles on a Consolidated Basis.

"**Cash Held at the Beginning of the Period**" means, in respect of any Determination Period, the aggregate amount of cash and cash equivalents held by the Borrower and its Subsidiaries on a Consolidated Basis on the first day of the relevant Determination Period.

"**Cash Flow Available for Debt Service**" means, as of any Determination Date and in respect of the Determination Period ending on such Determination Date, the aggregate on a Consolidated Basis of the Borrower's and its Subsidiaries' (determined without duplication): (i) Net Cash Flow from Operations, *plus* (ii) Capitalized Research & Development, *plus* (iii) interest from the Right Use of Assets, *plus* (iv) interest on Debt, including any Additional Interest and fees, *plus* (v) any financial expense to the extent it has been deducted in determining Net Cash flow from Operations, *minus* (vi) Cash Flow from Financing Activities, *plus* (vii) Capital Contributions, *minus* (viii) Dividends, *minus* (ix) any other financial outflows other than Debt related amortization, interest and fees.

"**Consolidated** or **Consolidated Basis**" means, with respect to any Financial Statements to be provided, or any financial calculation or determination to be made, under or for purposes of this Agreement or any other Financing Document, the method referred to in Section 1.4 (*Financial Calculations*).

"**Consolidated EBITDA**" means, as of any Determination Date and in respect of the Determination Period ending on such Determination Date, for the Borrower and its Subsidiaries determined on a Consolidated Basis in accordance with the Accounting Principles, the sum (determined without duplication) of: (i) the Consolidated Operating Income for such Determination Period *plus* (ii) depreciation and amortization to the extent deducted when determining Consolidated Operating Income for such Determination Period *plus/minus* (iii) other applicable items, such as other Non-Cash Items not previously accounted for, if any, to the extent deducted/added when determining Consolidated Operating Income for such Determination Period.

"**Consolidated Operating Income**" means, as of any Determination Date and in respect of any period of determination ending on such Determination Date, for the Borrower and its Subsidiaries determined on a Consolidated Basis in accordance with the Accounting Principles, the sum (determined without duplication) of: (i) revenues, *minus* (ii) the cost of goods sold, *minus* (iii) general, administrative, and sale expenses, *minus* (iv) depreciation and amortization.

"**Debt Service**" means, as of any Determination Date and in respect of the Determination Period ending on such Determination Date, for the Borrower and its Subsidiaries determined on a Consolidated Basis in accordance with the Accounting Principles, the sum (determined without duplication) of: (i) all scheduled payments (whether or not actually paid) falling due on account of principal of Debt and interest and other charges on Debt, *plus* (ii) any payment made or required to be made to any debt service account under the terms of any agreement providing for Debt *plus* (iii) all payments (whether or not actually paid) falling due on account of operating leases, including interest and any other fees and charges related to such operating leases.

"**Determination Date**" means March 31, June 30, September 30, and December 31, of each year.

"**Determination Period**" means each period of four Financial Quarters ending on the relevant Determination Date.

"**Dividends**" means, as of any Determination Date and in respect of the Determination Period ending on such Determination Date, the aggregate amount of Restricted Payments made by the Borrower during such Determination Period (disregarding, for this purpose, the parenthetical relating to the IDB Invest Put Option Agreement in clause (i) of the definition of Restricted Payments herein).

"**Financial Statements**" means, with respect to any Person, as of any relevant date and period, such Person's balance sheet, income statement, cash flow statement, statement of sources and uses of funds, statement showing changes in equity and any exhibits and notes thereto, which shall be prepared (i) in respect of the Borrower, in Colombian Pesos on a Consolidated Basis and (ii) in respect of each Subsidiary, in its respective local currency, all prepared on a consistent basis in accordance with the Accounting Principles.

Annex 1-15

BlaO Loan Agreement

CONFIDENTIAL

"**IRR**" means the internal rate of return on the BlaO Loan or portion thereof being prepaid, expressed as an annualized rate based on a three hundred sixty five (365)-day period used to discount each cash flow in Dollars in respect of the BlaO Loan or portion thereof being prepaid, calculated from the date or dates of such cash flows, and taking into account the amounts of the following, such that the present value of the aggregate of such cash flows equals zero:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) each
 Disbursement of the BlaO Loan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all
 payments of interest, Additional Interest and fees made hereunder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) all
 principal payments made in respect of the BlaO Loan.

For avoidance of doubt, the IRR shall be the output value obtained using the 'XIRR' function of Microsoft Excel in which: (a) the cash flows and dates thereof set forth in the immediately preceding sentence shall be the inputs in the worksheet; and (b) the net cash inflows of interest, Additional Interest, fees and principal payments to BlaO shall be positive inputs and all Disbursements of the BlaO Loan shall be negative inputs in the worksheet.

"**Maximum Net Debt to Consolidated EBITDA Ratio**" means, as of any Determination Date, the ratio obtained by dividing (i) the outstanding Net Financial Debt as of such Determination Date by (ii) the aggregate amount of Consolidated EBITDA for the Determination Period ending on such Determination Date.

"**Minimum Historical DSCR**" means, as of any Determination Date, the ratio obtained by dividing (i) the sum (determined without duplication) of (a) the Cash Flow Available for Debt Service for the Determination Period ending on such Determination Date, *plus* (b) Cash Held at the Beginning of the Period for such Determination Period, by (ii) the Debt Service for such Determination Period.

"**Minimum Prospective DSCR**" means, as of any Determination Date, the ratio obtained by dividing (i) the sum (determined without duplication) of (a) the Cash Flow Available for Debt Service for the Determination Period ending on such Determination Date, *plus* (b) Cash Held at the Beginning of the Period for such Determination Period, by (ii) the Projected Debt Service for the Relevant Period immediately following such Determination Date.

"**Net Cash Flow from Operations**" means, for any Determination Period, the net cash flows from operations of the Borrower and its Subsidiaries determined on a Consolidated Basis in accordance with the Accounting Principles.

"**Net Financial Debt**" means, as of any Determination Date, (i) the sum (determined without duplication) of (a) the Borrower's and its Subsidiaries' Financial Debt *plus* (b) all remaining payments owing in respect of operating leases, *minus* (ii) cash and marketable securities, determined on a Consolidated Basis in accordance with the Accounting Principles.

"**Non-Cash Items**" means, with respect to any Person for any period, the net aggregate amount (which may be a positive or negative number) of all non-cash expenses and non-cash credits that have been subtracted or, as the case may be, added in calculating the net income of such Person during that period, including depreciation, amortization, deferred taxes, provisions for severance pay of staff and workers.

"**Projected Debt Service**" means, for any Relevant Period, for the Borrower and its Subsidiaries determined on a Consolidated Basis, the sum (determined without duplication) of: (i) all scheduled payments projected to fall due on account of principal of Debt and interest and other charges on Debt, *plus* (ii) any payment projected to be made or required to be made to any debt service account under the terms of any agreement providing for the Debt during the Relevant Period; *provided*, that, for the computation of interest payable during any period for which the applicable rate is not yet determined, that interest shall be computed at the rate in effect on the relevant date of calculation *plus* (iii) all scheduled payments projected to fall due on account of operating leases during such Relevant Period, including interest and any other fees and charges related to such operating leases.

"**Relevant Period**" means each period of four Financial Quarters immediately following a Determination Date.

"**Right Use of Assets**" means, as of any Determination Date, any right use of assets reflected on the Consolidated balance sheet of the Borrower and its Subsidiaries.

Annex 1-16

BlaO Loan Agreement

<u>Execution Version</u>

CONFIDENTIAL

**ANNEX 2**

**ENVIRONMENTAL AND SOCIAL PROVISIONS**

**Section 1. <u>E&S Definitions</u>**.

Capitalized terms used but not defined in this <u>Annex 2</u> (*Environmental and Social Provisions*) shall have the meanings provided in <u>Annex 1</u> (*Definitions*). The following terms are used in this <u>Annex 2</u> and throughout this Agreement and all exhibits, schedules, plans, reports, and certifications presented and approved thereunder with the following meanings:

**"Corrective Action Plan"** means a corrective or mitigation plan, including a cost breakdown, allocation of responsibilities, and an implementation schedule, which, once initiated, will enable the Borrower to correct and remediate the damage and adverse effects resulting from any failure to comply with the Environmental and Social Action Plan, the Sustainability Policy, the Environmental and Social Standards and Guidelines, or the Environmental and Social Legislation, or to correct or mitigate the adverse effects of any Serious Incident.

**"Environmental and Social Action Plan"** means the plan prepared by the Borrower in accordance with <u>Annex 2A</u> (*Environmental and Social Action Plan*) attached to this Annex 2, which shall indicate the necessary actions, including the allocation of responsibilities and implementation schedule, for the purpose of ensuring that the design, operation, and maintenance of all the Borrower's facilities, plants, and equipment meet and maintain compliance with the Environmental and Social Standards and Guidelines, the Environmental and Social Legislation and the Sustainability Policy.

**"Environmental and Social Legislation"** means all applicable statutes, laws, regulations, decrees, resolutions, codes, orders, plans, court decrees, and applicable judicial or administrative decisions or interpretations issued at the international, national, state, municipal, or sector level that govern or make reference to Environmental and Social Issues.

**"Environmental and Social Monitoring Report"** means the true, accurate and complete report on compliance with the environmental guidelines established in the Environmental and Social Action Plan, confirming compliance with said guidelines or detailing the noncompliance thereof, together with the remedial action taken to ensure compliance with said Environmental and Social Action Plan.

**"Environmental and Social Standards and Guidelines"** means sector-specific guidelines and performance standards that contain best environmental and social practices to be implemented by the company in the design, operation, and maintenance of all its facilities, plants, and equipment, pursuant to the Sustainability Policy and other guiding regulations and documents listed in the Environmental and Social Action Plan.

**"Serious Incident"** means an event of accident, death, spillage of hazardous substances, explosions, fire, environmental or social claims or suits, significant complaints from the public or environmental authorities, or significant personal injury, among others.

**"Sustainability Policy"** means the IDB Invest Environmental and Social Sustainability Policy (document CII/GP-16-15), available at: https://idbinvest.org/sites/default/files/2020-05/idb_invest_sustainability_policy_2020_EN.pdf.

Annex 2-1

BlaO Loan Agreement

**Section 2. <u>E&S Representations and Warranties</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1. *Environmental and Social Considerations*. The Borrower declares that it and each of the Guarantors is
 in substantial compliance with the Environmental and Social Legislation, the Sustainability
 Policy and the applicable Environmental and Social Standards and Guidelines, with the exception
 of any action specifically noted in the Environmental and Social Action Plan as still pending
 with respect to achieving said substantial compliance **.** 

**Section 3. <u>E&S Conditions Precedent to First Disbursement</u>.**

[Intentionally Omitted.]

**Section 4. <u>E&S Conditions Precedent to All Disbursements</u>.**

[Intentionally Omitted.]

**Section 5. <u>E&S Affirmative Covenants</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. Unless
 previously authorized in writing by BlaO, the Borrower shall, and shall cause each of the
 Guarantors to, comply with the following obligations set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Due Diligence and Use of Loan Proceeds</u>. Conduct its business with due diligence, in an efficient
 and environmentally responsible manner, adhering fully to the customary practices in its
 area of business and ensuring that all its operations are carried out in accordance with
 market conditions. Execute the Environmental and Social Action Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Annual Reporting</u>. Within no more than forty five (45) days from the close of each Financial
 Year, provide BlaO an Environmental and Social Monitoring Report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Laws, Rules, and Regulations.</u> Conduct all its activities in accordance with all national, provincial,
 and municipal laws, rules, and regulations applicable to said activities, including any applicable
 Environmental and Social Legislation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Licenses, Approvals or Permits</u>. Maintain in force all licenses, approvals, and permits necessary
 for its business and operations, in general, including, but not limited to, those issued
 by any Governmental Authority and required by any Environmental and Social Legislation. Comply
 with and observe all conditions and restrictions contained in or imposed by any such licenses,
 approvals, or permits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2. *Environmental and Social Considerations*. Design, build, operate, and maintain all of the Borrower's
 facilities, plants, and equipment in accordance with the requirements set forth in the Environmental
 and Social Action Plan, the Environmental and Social Legislation, the Environmental and Social
 Standards and Guidelines, and the Sustainability Policy. In the event that the Borrower or
 any Guarantor detects:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any
 noncompliance with the Environmental and Social Action Plan, the Environmental and Social
 Legislation, the Environmental and Social Standards and Guidelines, and/or the Sustainability
 Policy; or

Annex 2-2

BlaO Loan Agreement

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any
 Serious Incident, the Borrower shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) notify
 BlaO within ten (10) Business Days from occurrence in the event of any such noncompliance,
 or within seventy-two (72) hours in the event of a Serious Incident, providing a reasonably
 detailed written description of such noncompliance or Serious Incident, including, but not
 limited to an account of (i) fatalities or serious injuries to personnel, and/or (ii) releases
 of hazardous substances, and/or (iii) unplanned releases, and/or (iv) explosions or fires;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) shall
 engage, diligently and at its own expense, the services of a qualified professional satisfactory
 to BlaO, to investigate the noncompliance or Serious Incident and prepare a written report
 for BlaO describing the event, in the understanding that such report shall include a reasonable
 description of the event, detailing its extent, magnitude and impact; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) shall
 take, diligently and at its own expense, all the steps necessary to implement the pertinent
 Corrective Action Plan in a form and substance satisfactory to BlaO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3. *Monitoring and Inspection Visits.* At the request of BlaO, allow BlaO or the person it designates
 to visit and inspect the Borrower's and each Guarantor's properties; conduct
 appraisals; examine the applicable business records, accounting books, and tax returns; and
 request from the Borrower's and each Guarantor's officials information about
 the Borrower's and each Guarantor's activities, assets, operational activities,
 financial situation, operating results, outlook, and the state of its compliance with the
 requirements pertaining to the Environmental and Social Issues and the implementation of
 the Environmental and Social Action Plan, at appropriate times and with appropriate frequency
 (at least once a year).

**Section 6. <u>E&S Negative Covenants</u>.**

[Intentionally Omitted.]

**Section 7. <u>Events of Default</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1. The
 Borrower fails to implement or comply with the Environmental and Social Action Plan and fails
 to remedy said noncompliance within thirty (30) days from BlaO's corresponding written
 notice to the Borrower.

Annex 2-3

BlaO Loan Agreement

## Exhibit 10.2

**Exhibit 10.2**

<u>Execution Version</u>

<u>CONFIDENTIAL</u>

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY , HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL

**IDB Invest Loan Number 13814-01**

**LOAN AGREEMENT**

**Dated as of April 27, 2022**

**between**

**Merqueo S.A.S., as Borrower**

**and**

**Inter-American Investment Corporation, as lender**

Loan Number 13814-01

CONFIDENTIAL

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| **ARTICLE 1** Definitions; Interpretation | **ARTICLE 1** Definitions; Interpretation | **1** |
| Section 1.1 | Definitions | 1 |
| Section 1.2 | Interpretation | 1 |
| Section 1.3 | Business Day Adjustment | 2 |
| Section 1.4 | Financial Calculations | 2 |
| Section 1.5 | IDB Invest's Calculation or Determination Final. | 2 |
| **ARTICLE 2** Part 1: The IDB Invest Loan | **ARTICLE 2** Part 1: The IDB Invest Loan | **2** |
| Section 2.1 | The IDB Invest Loan | 2 |
| Section 2.2 | Disbursement Procedure. | 2 |
| Section 2.3 | Repayment. | 4 |
| Section 2.4 | Voluntary and Mandatory Prepayments. | 4 |
| Section 2.5 | Application of Prepayments. | 6 |
| Section 2.6 | Currency and Place of Payment. | 6 |
| Section 2.7 | Allocation of Partial Payments. | 6 |
| Section 2.8 | Default Interest | 7 |
| Section 2.9 | Taxes. | 7 |
| Section 2.10 | Suspension of Disbursements; Cancellation of IDB Invest Loan Commitment. | 7 |
| Section 2.11 | Illegality. | 8 |
| Section 2.12 | Payment of Fees, Costs and Expenses. | 8 |
| Part 2: Interest Rate Terms and Conditions | Part 2: Interest Rate Terms and Conditions | **10** |
| Section 2.13 | IDB Invest Loan Interest. | 10 |
| Section 2.14 | Additional Interest. | 10 |
| Section 2.15 | Market Disruption. | 12 |
| Section 2.16 | Benchmark Replacement Setting. | 12 |
| Part 3: Promissory Notes | Part 3: Promissory Notes | **13** |
| Section 2.17 | Notes. | 13 |
| **ARTICLE 3** Representations and Warranties | **ARTICLE 3** Representations and Warranties | **13** |
| Section 3.1 | Representations and Warranties | 13 |
| Section 3.2 | Acknowledgment and Warranty | 17 |
| **ARTICLE 4** Conditions Precedent to Disbursement | **ARTICLE 4** Conditions Precedent to Disbursement | **17** |
| Section 4.1 | Conditions Precedent to First Disbursement | 17 |
| Section 4.2 | Conditions Precedent to All Disbursements | 19 |
| **ARTICLE 5** Covenants | **ARTICLE 5** Covenants | **20** |
| Section 5.1 | Affirmative Covenants | 20 |
| Section 5.2 | Negative Covenants | 24 |
| Section 5.3 | Information | 26 |
| Section 5.4 | Environmental and Social. | 28 |

---

-i-

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

---

| | | |
|:---|:---|:---|
| **ARTICLE 6** Events of Default | **ARTICLE 6** Events of Default | **28** |
| Section 6.1 | Events of Default | 28 |
| Section 6.2 | Remedies | 30 |
| Section 6.3 | Bankruptcy | 30 |
| **ARTICLE 7** Miscellaneous | **ARTICLE 7** Miscellaneous | **31** |
| Section 7.1 | Notices | 31 |
| Section 7.2 | English Language | 31 |
| Section 7.3 | Indemnity; Waiver of Consequential Damages. | 32 |
| Section 7.4 | Successors and Assigns | 32 |
| Section 7.5 | Counterparts | 33 |
| Section 7.6 | Confidential Information | 33 |
| Section 7.7 | Amendment | 33 |
| Section 7.8 | Savings of Rights; Remedies; No Waiver. | 33 |
| Section 7.9 | Severability | 34 |
| Section 7.10 | Applicable Law and Jurisdiction | 34 |
| Section 7.11 | Set-Off | 36 |
| Section 7.12 | Entire Agreement | 36 |
| Section 7.13 | No Third-Party Beneficiary. | 36 |
| Section 7.14 | Survival | 36 |
| Section 7.15 | Term of Agreement | 36 |

---

**<u>ANNEXES, SCHEDULES AND EXHIBITS</u>**

**<u>ANNEXES</u>**

ANNEX 1: DEFINITIONS <br> ANNEX 2: ENVIRONMENTAL AND SOCIAL PROVISIONS

**<u>SCHEDULES</u>**

---

| | |
|:---|:---|
| SCHEDULE 1: | MEMBER COUNTRIES OF IDB INVEST |
| SCHEDULE 2: | LIST OF EXCLUDED ACTIVITIES |
| SCHEDULE 3: | DEVELOPMENT INDICATORS |
| SCHEDULE 3.1.4 | MERQUEO MEZZ PROJECT –MEXICO AND BRAZIL LEGAL PERMITS ACTION PLAN |
| SCHEDULE 4: | PERMITTED LIENS |
| SCHEDULE 5: | WAREHOUSE LEASES |
| SCHEDULE 6: | BORROWER'S SHARE CAPITAL |
| SCHEDULE 7: | KEY PERFORMANCE INDICATORS |
| SCHEDULE 8: | CORPORATE GOVERNANCE ACTION PLAN |

---

**<u>EXHIBITS</u>**

---

| | |
|:---|:---|
| EXHIBIT 1: | FORM OF DISBURSEMENT REQUEST |
| EXHIBIT 2: | FORM OF BORROWER'S CERTIFICATE REGARDING ORGANIZATIONAL DOCUMENTS/CORPORATE RESOLUTIONS |
| EXHIBIT 3: | FORM OF BORROWER'S SERVICE OF PROCESS LETTER |
| EXHIBIT 4: | FORM OF AUTHORIZATION TO AUDITOR |
| EXHIBIT 5: | FORM OF BORROWER'S CERTIFICATE OF INCUMBENCY AND AUTHORITY |
| EXHIBIT 6: | FORM OF BORROWER'S QUARTERLY CERTIFICATE |
| EXHIBIT 7: | FINANCIAL RATIOS COMPLIANCE CERTIFICATE |
| EXHIBIT 8: | FORM OF BORROWER'S LEGAL OPINION |

---

-ii-

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

**LOAN AGREEMENT** (together with all Annexes, Schedules and Exhibits hereto, this "**Agreement**") dated as of April 27, 2022 (the "**Effective Date**"), between:

(1) **MERQUEO S.A.S.**, a simplified stock corporation organized and existing under the laws of the Republic of Colombia (the "**Borrower** ");
and

(2) **INTER-AMERICAN INVESTMENT CORPORATION**, an international organization established by the Agreement
Establishing the Inter-American Investment Corporation among its member countries, including Brazil, Colombia, and Mexico ()"**IDB Invest** "), as lender of the IDB Invest Loan (as defined below).

**ARTICLE 1**

**Definitions; Interpretation**

**Section 1.1** **Definitions**.

Capitalized terms used herein have the meanings provided in <u>Annex</u> 1 <u>(*Definitions*)*.*</u>

**Section 1.2** **Interpretation**.

In this Agreement, unless the context otherwise requires:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) headings are for convenience only and do not affect its interpretation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii) singular terms include the plural and vice versa, and each gender includes all genders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iii) a reference to an Article, Section, paragraph, Schedule, Exhibit or Annex is a reference to that Article, Section or paragraph of, Schedule, Exhibit or Annex to, this Agreement, unless otherwise specified;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iv) a reference to a document includes any amendment or supplement to, or replacement, novation or modification of, that document unless made in breach of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (v) the term "including" means "including without limitation";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (vi) the terms "herein," "hereof" and "hereunder" refer to this Agreement as a whole;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (vii) phrases such as "satisfactory to IDB Invest", "approved by IDB Invest", "acceptable to IDB Invest", "as IDB Invest determines", "selected by IDB Invest" and phrases of similar import, authorize IDB Invest to act and/or make the relevant determination in its sole discretion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (viii) phrases such as "as IDB Invest may reasonably require" or "as IDB Invest may reasonably request" and phrases of similar import authorize and permit IDB Invest to act or decline to act in its reasonable discretion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ix) references to "knowledge," "know" and "known" shall mean knowledge after due inquiry and references to such terms in respect of the Borrower shall be deemed to include the knowledge of the Founders; and

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (x) in the computation of periods of time from a specified date to a later specified date, the word "from" means "from and including" and the words "to" and "until" mean "to but excluding".

**Section 1.3** **Business Day Adjustment**.

If a payment is due on a date that is not a Business Day, such payment shall instead be due on the next succeeding Business Day. Interest, fees and charges (if any) thereon shall continue to accrue until the date such payment is made.

**Section 1.4** **Financial Calculations**.

All financial calculations to be made for the purposes of this Agreement or any other Financing Document shall be determined in accordance with the Accounting Principles and, except as otherwise required by this Agreement, shall be based on the Borrower's most recently issued quarterly Financial Statements furnished to IDB Invest under Section 5.3.2 (*Unaudited Quarterly Financial Statements*); *provided however*, that where financial calculations would otherwise be based on Financial Statements from the last quarter of a Financial Year, then, at IDB Invest's option, those calculations will instead be based on the audited Financial Statements for the relevant Financial Year.

**Section 1.5** **IDB Invest's Calculation or Determination Final.**

Any calculation or determination by IDB Invest of any amount pursuant to this Agreement, including the Interest Rate, the Additional Interest, any other fees, Costs and compliance with any Financial Covenants, shall be final and conclusive and bind the Borrower unless the determination involved manifest error. IDB Invest's internal records regarding payments made on account of the Obligations shall be conclusive and bind the Borrower unless the determination involved manifest error; *provided,* that the failure of IDB Invest to maintain such accounts or any error therein shall not affect the Borrower's obligation to repay the IDB Invest Loan in accordance with this Agreement. IDB Invest shall not have any liability of any nature whatsoever as a result of any determination made by IDB Invest being proved to involve any error.

**ARTICLE 2**

**Part 1: The IDB Invest Loan**

**Section 2.1** **The IDB Invest Loan**.

2.1.1 Subject to the terms and conditions of this Agreement, IDB Invest agrees to lend to the Borrower, and the Borrower agrees to borrow from IDB Invest, a loan (the "**IDB Invest Loan"**) in an aggregate principal amount of four million Dollars ($4,000,000) (such commitment, the "**IDB Invest Loan Commitment**").

2.1.2 The IDB Invest Loan shall rank *pari passu* with the BlaO Loan.

**Section 2.2** **Disbursement Procedure.**

2.2.1 The Borrower may request Disbursements by delivering to IDB Invest at least ten (10) Business Days prior to each proposed Disbursement Date: (i) an irrevocable Disbursement Request, appropriately completed and duly executed by an Authorized Representative of the Borrower and (ii) all documents required to be delivered as a condition precedent to such Disbursement pursuant to Article 4 (*Conditions Precedent to Disbursement*) (other than any document that is required to be delivered only as of the relevant Disbursement Date).

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

2.2.2 All Disbursements (other than Disbursements of the Interest Reserve Amount) shall be made in Dollars to the Disbursement Account. Other than Disbursements of the Interest Reserve Amount, which shall be made in accordance with Section 2.2.4 below, the Borrower shall only be permitted to request one (1) Disbursement, which shall be made in a whole Dollar amount equal to three million one hundred eighty thousand Dollars ($3,180,000); *provided*, that the Borrower shall be permitted to request one additional Disbursement of the Interest Reserve Balance in the circumstances described in Section 2.2.4(ii) below.

2.2.3 Notwithstanding any other provision of this Agreement, no Disbursement shall be made where a related transfer of funds would violate any Applicable Law or the AML/CFT policies, procedures or controls of IDB Invest or any financial institution that is involved in the transfer of funds.

2.2.4 *Interest Reserve*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Notwithstanding anything to the contrary in this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) during the period commencing on the first Disbursement Date
and ending on the second (2nd) anniversary thereof (the "**Interest Reserve Period** "), eight hundred twenty thousand
Dollars ($820,000) of the IDB Invest Loan Commitment (the "**Interest Reserve Amount**") shall not be available for Disbursement
to the Borrower but instead shall be used to pay interest amounts owing on the IDB Invest Loan in accordance with this Section 2.2.4;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) during the Interest Reserve Period and at least ten (10) Business Days prior to each Interest Payment
Date, the Borrower shall request a non-cash Disbursement in accordance with Section 2.2.1 (*Disbursement Procedure*) of two hundred
five thousand Dollars ($205,000) from the Interest Reserve Amount (each an "**Interest Reserve Disbursement** "), instructing
IDB Invest to allocate such funds to pay the amount of interest payable in respect of the IDB Invest Loan on such Interest Payment Date.
Interest Reserve Disbursements shall be subject to the following: (i) each such Interest
Reserve Disbursement shall be added to the then-outstanding amount of principal of the IDB Invest Loan only to the extent of the amount
of interest due on the IDB Invest Loan on the relevant Interest Payment Date; (ii) if two hundred five thousand Dollars ($205,000) is
in excess of the amount of interest due on the IDB Invest Loan on the relevant Interest Payment Date, then such excess amount shall be
disregarded for purpose of calculating the principal amount of the IDB Invest Loan outstanding and shall be subject to Section 2.2(ii)
below; and (iii) if two hundred five thousand Dollars ($205,000) is less than the amount of interest due on the IDB Invest Loan on the
relevant Interest Payment Date, then such shortfall shall remain due and payable to the extent set forth in Section 2.2(ii) below, but,
notwithstanding anything to the contrary in this Agreement, such shortfall amount shall not incur interest (or default interest) during
the period beginning on such Interest Payment Date and ending on the date on which payment thereof is due under Section 2.2(ii) below;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) notwithstanding anything to the contrary in this Section 2.2.4(i), during the Interest Reserve Period,
if the Borrower has failed to make a Disbursement Request as described above, IDB Invest may, at its sole discretion but with notice to
the Borrower, make an Interest Reserve Disbursement of all or a portion of the funds in the Interest Reserve Amount directly to itself
in order to pay any amount of interest payable in respect of the IDB Invest Loan on any Interest Payment Date (or any other date on which
interest becomes payable hereunder, in connection with a Mandatory Prepayment Event, an
Event of Default or otherwise). For the avoidance of doubt, any such Disbursement shall be added to then-outstanding amount of the principal
of the IDB Invest Loan.

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii) Within two (2) months after the expiration of the Interest Reserve Period (or any other date on which interest becomes payable hereunder in connection with a Mandatory Prepayment Event or an Event of Default), IDB Invest shall calculate the difference between (a) the aggregate amount of Interest Reserve Disbursements and (b) the aggregate amount of interest which was payable in respect of the IDB Invest Loan on the relevant Interest Payment Dates (the "**Interest Reserve Balance**") and notify the Borrower thereof. If the Interest Reserve Balance is positive and so long as the IDB Invest Loan Commitment has not been cancelled in accordance with Section 2.10 (*Suspension of Disbursements; Cancellation of IDB Invest Loan Commitment*), the Borrower shall have the right to request a Disbursement of all or a portion of such Interest Reserve Balance in accordance with Section 2.2.1 (*Disbursement Procedure*) within one month of the date of the relevant notice from IDB Invest. If the Interest Reserve Balance is negative, the Borrower shall pay IDB Invest an amount equal to the Interest Reserve Balance (x) immediately, in the case of a Mandatory Prepayment Event or an Event of Default) and (y) otherwise, within one month of the date of the notice from IDB Invest.

**Section 2.3** **Repayment.**

2.3.1 The Borrower shall repay the IDB Invest Loan in Dollars in equal semi -annual installments of principal on each Interest Payment Date commencing on the First Repayment Date and ending on the Loan Final Maturity Date, on which date the entire remaining outstanding principal amount of the IDB Invest Loan shall be due and payable in full.

2.3.2 Principal amounts repaid or prepaid may not be re-borrowed.

**Section 2.4** **Voluntary and Mandatory Prepayments.**

2.4.1 *Voluntary Prepayments*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) After the first (1<sup>st</sup>) anniversary of the Effective Date, the Borrower may prepay all or any portion of the IDB Invest Loan on any Interest Payment Date, upon at least thirty (30) days' prior irrevocable written notice to IDB Invest, together with the fees, interest and Costs provided in Section 2.4.3 (*Prepayment Fees and Costs*).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Borrower may only make a total of two prepayments of the IDB Invest Loan under this Section 2.4, (a) the first of which shall be in an amount equal to fifty percent (50%) of the then-outstanding principal balance of the IDB Invest Loan and (b) the second of which shall be in an amount equal to the remaining principal balance of the IDB Invest Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Borrower shall deliver to IDB Invest, prior to the date of prepayment, either (a) evidence satisfactory to IDB Invest that any Authorizations necessary for the prepayment have been obtained or (b) a certification that no such Authorizations are required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Notwithstanding anything to the contrary in this Section 2.4.1, after the third (3<sup>rd</sup>) anniversary of the Effective Date, the Borrower shall not be permitted to make a voluntary prepayment of the IDB Invest Loan under this Section 2.4.1, unless the Borrower provides evidence satisfactory to IDB Invest that the Borrower is making a simultaneous and *pro-rated* prepayment of the BlaO Loan in accordance with the terms of the BlaO Loan Agreement.

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

2.4.2 *Mandatory Prepayments*. Upon the occurrence of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Except in the case of a SPAC Transaction, a Change of Control without IDB Invest's prior written consent, and in connection therewith IDB Invest shall grant or reject any request for such consent within thirty (30) days of the Borrower providing all relevant information reasonably requested by IDB Invest; *provided*, that any failure by IDB Invest to respond to any such consent request shall be deemed to be a rejection by IDB Invest; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii) an Unauthorized Share Transaction (each, a "**Mandatory Prepayment Event**"),

(a) the Borrower shall prepay all Obligations, including amounts payable with respect to such prepayment pursuant to Section 2.4.3 (*Prepayment Fees and Costs*), (b) the IDB Invest Loan Commitment and the Borrower's right to request any Disbursements shall be terminated, and (c) IDB Invest may exercise any remedies that may be available to IDB Invest under any Financing Document or Applicable Law. Any prepayment required by this Section 2.4.2 shall be due and payable no later than ten (10) days following the occurrence of the relevant Mandatory Prepayment Event.

2.4.3 *Prepayment Fees and Costs*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Prepayment Fees*. With each prepayment of the IDB Invest Loan pursuant to Section 2.4.1 (*Voluntary Prepayments*), Section 2.4.2 (*Mandatory Prepayments*) or otherwise, the Borrower shall concurrently pay a prepayment fee in Dollars which, when added to the principal amount being prepaid *plus* all previous installments of principal prepaid or repaid *plus* all payments of interest, Additional Interest and fees paid to IDB Invest in respect of such principal amounts (or deemed allocated to such principal amounts in accordance with the last sentence of this Section 2.4.3(i)), would yield an amount equal to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a twenty-two percent (22%) IRR on the IDB Invest Loan (or, in the case of a partial prepayment, the amount
of principal amount being prepaid *plus* all previous installments of principal prepaid or repaid), if such prepayment is made on
or after the first (1st) anniversary of the Effective Date and prior to the fourth (4th) anniversary of the Effective Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a twenty-one percent (21%) IRR on the IDB Invest Loan (or, in the case of a partial prepayment, the amount
of principal amount being prepaid *plus* all previous installments of principal prepaid or repaid), if such prepayment is made on
or after the fourth (4th) anniversary of the Effective Date and prior to the fifth (5th) anniversary of the Effective Date; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a twenty percent (20%) IRR on the IDB Invest Loan (or, in the case of a partial prepayment, the amount
of principal amount being prepaid *plus* all previous installments of principal prepaid or repaid), if such prepayment is made on
or after the fifth (5th) anniversary of the Effective Date;

*provided*, that if a Mandatory Prepayment Event occurs before the third (3rd) anniversary of the Effective Date, the prepayment fee shall instead be an amount which would yield a twenty-two percent (22%) IRR assuming a three (3)-year time period; *provided further*, that in the case of a Mandatory Prepayment Event under Section 2.4.2(i) where (1) the Borrower requested IDB Invest's consent to carry out a Change of Control in connection with the listing of its or its parent company's Share Capital on a U.S. securities exchange registered with the U.S. Securities and Exchange Commission, (2) the Borrower provided to IDB Invest all relevant information reasonably requested by it, and (3) IDB Invest rejected such consent request in respect of the proposed Change of Control, such prepayment fee shall instead be an amount which would yield a sixteen percent (16%) IRR assuming a three (3)-year time period.

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

For the avoidance of doubt, the prepayment fee under this Section 2.4.3(i) shall not apply to a prepayment made pursuant to Section 2.11 (*Illegality*). For purposes of any IRR calculation for any prepayment fee in the case of a partial prepayment of the IDB Invest Loan: (x) all amounts of Additional Interest and fees previously paid to IDB Invest hereunder shall be deemed to have been allocated to the principal amount prepaid and all previous installments of principal prepaid or repaid *pro rata*, on the basis of the percentage of the aggregate principal amount of the IDB Invest Loan represented by the relevant prepayment and all previous installments of principal prepaid or repaid; and (y) the amount prepaid shall be deemed to be comprised of the earliest Disbursement(s) of the IDB Invest Loan made hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *Interest and Costs*. On the date of each prepayment of the IDB Invest Loan (including, for the avoidance of doubt, any prepayment made pursuant to Section 2.11 (*Illegality*)), the Borrower shall concurrently pay: (a) all accrued and unpaid interest on, and any Increased Costs incurred in connection with, the IDB Invest Loan; (b) any Costs then due pursuant to Section 2.12.4 (*Other Costs*); and (c) any other Obligations then due and payable.

**Section 2.5** **Application of Prepayments.**

Amounts of principal prepaid under Section 2.4 (*Voluntary and Mandatory Prepayments*) shall be applied by IDB Invest to the outstanding installments of principal of the IDB Invest Loan in inverse order of maturity.

**Section 2.6** **Currency and Place of Payment.**

2.6.1 Payments of all Obligations shall be made in Dollars, in immediately available funds, to the Inter-American Investment Corporation at JPMORGAN CHASE BANK in New York, New York, United States of America, Account No: 323 373844, ABA: 021000021, SWIFT: CHASUS33, Ref. PRJ# 13814-01 or to such other account as IDB Invest may instruct (in either case, the "**Receipt Account**") by no later than 11:00 a.m. New York City time, or at such other bank or banks, in such place or places, as IDB Invest may designate. IDB Invest may deem any payment received after that time to have been made on the next Business Day.

2.6.2 The payment obligations of the Borrower under this Agreement shall be discharged only to the extent that (and as of the date when) Dollars are received in the Receipt Account, notwithstanding the tender or payment (including by way of recovery under a judgment) of any amount in any currency other than Dollars. Accordingly, the Borrower shall pay such additional amount as is necessary to enable IDB Invest to receive, after conversion to Dollars, and transfer to the Receipt Account, the full amount due to IDB Invest under this Agreement. Notwithstanding the foregoing and Section 2.6.1, IDB Invest may require the Borrower to pay (or to reimburse IDB Invest) in any currency other than Dollars for (i) any Taxes or other amounts payable under Section 2.9 (*Taxes*) and (ii) any fees or Costs payable under Section 2.12 (*Payment of Fees, Costs and Expenses*), in each case to the extent such amounts are payable in such other currency.

**Section 2.7** **Allocation of Partial Payments.**

If IDB Invest at any time receives less than the full amount then due in respect of the Obligations, such amount shall be allocated in the following order, any: (i) Costs; (ii) fees; (iii) default interest; (iv) ordinary interest; (v) Additional Interest; and (vi) principal of the IDB Invest Loan.

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

**Section 2.8 Default Interest.**

Without limiting the remedies available to IDB Invest under this Agreement or otherwise and in addition to any amounts owing pursuant to Section 2.13 (*IDB Invest Loan Interest*), if the Borrower fails to pay any Obligation (including interest payable pursuant to this Section 2.8) when due (whether at maturity or upon acceleration), then the Borrower shall pay default interest on the unpaid amount (i) in the case of overdue principal, at a rate equal to two percent (2.0%) per annum, (ii) in the case of overdue interest or Additional Interest on the IDB Invest Loan, at a rate equal to the sum of two percent (2.0%) per annum *plus* the Interest Rate, and (iii) for all other overdue Obligations, at a rate of ten percent (10%) per annum. Interest at such rates shall accrue from the date an Obligation is due until the date paid and shall be due and payable on the earlier of the date of demand by IDB Invest and the next Interest Payment Date. Should such default interest exceed the maximum allowed by Applicable Law, the maximum interest rate allowed by Applicable Law shall apply.

**Section 2.9** **Taxes.**

2.9.1 The Borrower shall timely pay or cause to be paid (i) all Taxes and other liabilities of whatsoever nature arising in connection with the payment of any Obligation that are imposed by any Authority of the Borrower's Country or of any other jurisdiction from or through which any such payment is made (other than any Taxes on net income) (all such Taxes and other liabilities, collectively, "**Transaction Taxes**") and (ii) all stamp, recording, documentary or similar taxes and all other charges or levies payable on or in connection with the execution, delivery, registration, consularization, translation, notarization or enforcement of this Agreement or any other Financing Document (collectively, "**Other Taxes**").

2.9.2 All payments by the Borrower under this Agreement or under any other Financing Document shall be made free and clear of, and without deduction or withholding for, any Transaction Taxes or Other Taxes. If the Borrower is required by Applicable Law or otherwise to deduct or withhold any Transaction Taxes from any such payment, then (i) the amount payable by the Borrower shall be increased as necessary so that, after making any such required deductions (including deductions applicable to additional amounts payable under this Section 2.9), IDB Invest receives the full amount it would have received had no such deduction or withholding been required, and (ii) the Borrower shall make such deduction or withholding and shall pay the full amount deducted or withheld to the relevant Authority in accordance with Applicable Law.

**Section 2.10** **Suspension of Disbursements; Cancellation of IDB Invest Loan Commitment.**

2.10.1 If (i) any Mandatory Prepayment Event has occurred or any Event of Default has occurred and is continuing, (ii) the Borrower's Country ceases to be an IDB Invest Member, or (iii) the maximum aggregate number of Disbursements permitted pursuant to Section 2.2.2 (*Disbursement Procedure*) has been achieved, then, by notice to the Borrower, IDB Invest may cancel all or any portion of the undisbursed amount of the IDB Invest Loan Commitment or suspend the Borrower's right to request further Disbursements (for such period and on such conditions as IDB Invest determines).

2.10.2 If the circumstance described in Section 2.11 (*Illegality*) arises, the IDB Invest Loan Commitment shall be cancelled as set forth in such Section; *provided*, that the amount of the affected IDB Invest Loan Commitment to be cancelled shall be determined by IDB Invest. If any amount of the IDB Invest Loan Commitment is not disbursed as of the Commitment Termination Date, such amount shall be automatically cancelled.

2.10.3 Upon cancellation of the IDB Invest Loan Commitment pursuant to Sections 2.10.1 or Section 2.10.2, the Borrower shall pay to IDB Invest, no later than (i) five (5) Business Days after the occurrence of such cancellation if the cancellation is in full or (ii) the next Interest Payment Date if such cancellation is a partial cancellation, all fees, Costs and other Obligations (other than outstanding principal of, and interest and Additional Interest not then due on, the IDB Invest Loan) accrued through the date of full payment of all such amounts, whether or not such amounts were otherwise due and payable.

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

2.10.4 The Borrower may, by notice to IDB Invest and upon payment of all fees, Costs and any other Obligations (other than outstanding principal of, and interest and Additional Interest not then due on, the IDB Invest Loan) accrued through such date, irrevocably request IDB Invest to cancel all or any portion of the undisbursed amount of the IDB Invest Loan Commitment (excluding the Interest Reserve Amount during the Interest Reserve Period) in the amount and on the date specified in such notice; *provided*, that such date is at least five (5) Business Days (i) after the date of the notice or (ii) prior to the next succeeding Interest Payment Date; and *provided further,* that such payment is made by the Borrower (a) fifteen (15) Business Days after the date of the notice or (b) on the next succeeding Interest Payment Date, as applicable. IDB Invest shall, upon receipt of such notice and payment, by notice to the Borrower, cancel such requested portion of the IDB Invest Loan Commitment effective as of the date specified in the Borrower's notice; *provided*, that the obligation of IDB Invest to cancel such requested portion of the IDB Invest Loan Commitment shall be subject to the condition that Borrower provide evidence satisfactory to IDB Invest that the Borrower is making a simultaneous request to make a *pro rata* cancellation of the commitment for the BlaO Loan in accordance with the terms of the BlaO Loan Agreement.

2.10.5 The Commitment Fee shall continue to accrue and be payable during any suspension of the Borrower's right to request Disbursements pursuant to this Section 2.10 (unless such suspension is a result of the circumstance described in clause (ii) of Section 2.10.1) but, as of the effective date of any cancellation of the IDB Invest Loan Commitment, shall cease to accrue with respect to the amount cancelled.

2.10.6 Any cancelled portion of the IDB Invest Loan Commitment shall not be reinstated or disbursed.

**Section 2.11** **Illegality.**

If any Change in Law makes it unlawful for IDB Invest to fund or maintain the IDB Invest Loan or any portion thereof, the Borrower's right to request a Disbursement of the undisbursed portion of the IDB Invest Loan Commitment affected by the Change in Law shall terminate, and the Borrower shall, within five (5) Business Days of receipt of notice thereof from IDB Invest (together with any default interest, losses or any other additional costs incurred by IDB Invest until such prepayment is made in full), prepay in full the IDB Invest Loan, including all interest and costs provided in Section 2.4.3(ii) (*Interest and Costs*). No prepayment fee shall be payable in respect of any prepayment pursuant to this Section 2.11 as well as any accrued but unpaid Additional Interest.

**Section 2.12 Payment of Fees, Costs and Expenses.**

2.12.1 *Fees*. The Borrower shall pay to IDB Invest:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a commitment fee (the "**Commitment Fee**") equal to two and one half percent (2.5%) per annum of the undisbursed and uncancelled portion of the IDB Invest Loan Commitment (excluding the Interest Reserve Amount), which shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) begin to accrue daily, in respect of the IDB Invest Loan Commitment on the earlier of (1) ninety (90)
days after the Effective Date and (2) the first Disbursement date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) be calculated on the basis of a three hundred and sixty (360)-day year for the actual number of days elapsed; and

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) be payable in arrears on the Interest Payment Dates in each year, except that the first such payment shall
be due on the first Interest Payment Date occurring after the date on which the Commitment Fee begins to accrue;

*provided,* that, if any Disbursement is made fewer than ten (10) Business Days before an Interest Payment Date, then such Disbursement shall be disregarded for the purposes of calculating the Commitment Fee due on such Interest Payment Date and any excess Commitment Fee paid by the Borrower on such Interest Payment Date shall be credited to the Borrower on the next Interest Payment Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in accordance with the Fee Letters of IDB Invest: (a) a front end fee calculated based on the aggregate amount of the IDB Invest Loan Commitment; (b) a waiver and amendment fee; (c) an annual supervision fee; and (d) such other fees, to be agreed upon, if applicable, between IDB Invest and the Borrower after the Effective Date, in each case as agreed in writing by IDB Invest and the Borrower.

2.12.2 *Expenses*. The Borrower shall pay to IDB Invest, or as IDB Invest may direct the out-of-pocket expenses (including travel and subsistence expenses, if applicable) of IDB Invest and all fees and expenses of IDB Invest's legal counsels incurred in connection with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the preparation, review, negotiation, execution, implementation and, where appropriate, translation, registration and notarization of the Financing Documents and any other related documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the registration (where applicable) and the delivery of the evidence of indebtedness relating to the IDB Invest Loan and the Disbursements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) IDB Invest's efforts to preserve, enforce or protect its rights under any Financing Document or upon the exercise of its rights or powers arising out of the occurrence of any Default, including any related legal and other professional consultants' fees and expenses on a full indemnity basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the giving of any legal opinions IDB Invest requires under this Agreement and any other Financing Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any amendment of, supplement or modification to, or waiver under, any Financing Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (vi) the occurrence of any Default or Mandatory Prepayment Event; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (vii) the release of any Security following repayment in full of the IDB Invest Loan.

2.12.3 *Increased Costs*. On each Interest Payment Date the Borrower shall pay, in addition to any other amounts then due, the amount that IDB Invest from time to time notifies to the Borrower as being the Increased Costs accrued and unpaid prior to such Interest Payment Date.

2.12.4 *Other Costs*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Borrower shall pay to IDB Invest the amount of any Costs notified by IDB Invest to the Borrower as incurred by IDB Invest pursuant to any Financing Document, including in connection with the cancellation of all or any portion of the IDB Invest Loan Commitment as provided in Section 2.10.1 (*Suspension of Disbursements; Cancellation of IDB Invest Loan Commitment*), any Disbursement Request delivered hereunder (regardless of whether the disbursement is finally made or not), or as a result of the Borrower: (a) failing to (1) pay any Obligation on the due date thereof, (2) borrow in accordance with any Disbursement Request, or (3) make any prepayment pursuant to Section 2.4.1 (*Voluntary Prepayments*) in accordance with a notice of prepayment or when due pursuant to Section 2.4.2 (*Mandatory Prepayments*); or (b) repaying any amount of the IDB Invest Loan on a date other than an Interest Payment Date (including as a result of an Event of Default). Payment of amounts due under this Section 2.12.4 shall be made by the Borrower within five (5) Business Days of receipt of notice thereof (together with any default interest, losses or any other additional costs incurred by IDB Invest during such five (5) Business Day period).

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If the Borrower repays any amount of the IDB Invest Loan on a date other than an Interest Payment Date, then the Costs incurred by IDB Invest shall include, and the Borrower shall pay to IDB Invest, in addition to any other amounts payable by the Borrower under clause (i) of this Section 2.12.4, the amount determined by IDB Invest as the difference, if any, between (a) the amount of interest that would have accrued on the principal amount of the IDB Invest Loan had such repayment not occurred at the Interest Rate then applicable to such Loan for the remainder of the Interest Period during which the relevant repayment is made, and (b) the amount of interest that IDB Invest would earn on such repaid principal amount for the remainder of such Interest Period if such principal amount were invested for such remaining period at the interest rate that would be bid to IDB Invest from prime banks in the New York interbank market at the time such repayment occurs.

**Part 2: Interest Rate Terms and Conditions**

**Section 2.13 IDB Invest Loan Interest.**

2.13.1 *General Provisions*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Borrower shall pay interest on the outstanding principal amount of the IDB Invest Loan in accordance with this Section 2.13.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Interest on the IDB Invest Loan shall accrue daily for each Interest Period from the first (1st) day of such Interest Period to, the last day of such Interest Period, computed on the basis of the actual number of days elapsed in such Interest Period in a year of three hundred and sixty (360) days and shall be payable in arrears on the Interest Payment Date falling on such last day; *provided,* that the first (1st) payment of interest on any Disbursement made fewer than ten (10) Business Days before an Interest Payment Date shall be made on the second (2nd) Interest Payment Date following the date of that Disbursement.

2.13.2 *Interest Rate*. The following terms shall apply the IDB Invest Loan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) During each Interest Period, the IDB Invest Loan shall bear interest at the Interest Rate for that Interest Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The variable interest rate applicable to each Disbursement of the IDB Invest Loan for each Interest Period shall be the sum of (a) Applicable Term SOFR on the Interest Rate Determination Date for that Interest Period, *plus* (b) the Applicable Spread.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) On each Interest Rate Determination Date, IDB Invest shall determine the Interest Rate applicable to the corresponding Interest Period and IDB Invest shall promptly notify the Borrower of such rate.

**Section 2.14** **Additional Interest.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) As additional compensation to IDB Invest for making the IDB Invest Loan available to the Borrower, the Borrower shall make payments to IDB Invest in an aggregate amount equal to seventy-three hundredths of one percent (0.73%) of the Adjusted EBITDA for each Financial Year or portion thereof (the "**Additional Interest**"), as set forth in this Section 2.14.

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii) The Additional Interest payments shall be calculated by IDB Invest as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for each Additional Interest Calculation Period ending on June 30th, the amount of Additional Interest
payable shall be calculated by IDB Invest on the basis of the Adjusted EBITDA for the six (6)-month period ending on such Financial Quarter
Date on the basis of the unaudited quarterly Financial Statements delivered to IDB Invest for the relevant Financial Quarters under Section
5.3.2 (*Unaudited Quarterly Financial Statements*); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) for each Additional Interest Calculation Period ending on December 31st, the amount of Additional Interest
payable shall be calculated by IDB Invest on the basis of the Adjusted EBITDA for the Financial Year ending on such date on the basis
of the audited annual Financial Statements delivered to IDB Invest for such Financial Year under Section 5.3.1(ii) (*Audited Annual Financial Statements*);

*provided*, that if the Borrower fails to deliver such quarterly or annual Financial Statements when and as required by Sections 5.3.1(ii) and 5.3.2, IDB Invest may calculate the Additional Interest based on such information as is available to it, but the Borrower and IDB Invest agree that the amount of such payment shall thereafter be subject to adjustment if the final calculation of Additional Interest based on the annual Financial Statements is different.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iii) The amount of Additional Interest shall be payable as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for the Additional Interest Calculation Period ending on June 30, the Borrower shall pay to IDB Invest
an amount equal to the Additional Interest calculated under Section 2.14(ii)(a) for such Additional Interest Calculation Period on the
following October 15; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) for the Additional Interest Calculation Period ending on December 31, the Borrower shall pay to IDB Invest
an amount equal to the Additional Interest for such Additional Interest Calculation Period on April 15 of the succeeding Financial Year; *provided*, that from such payment there shall be subtracted the Additional Interest amount paid by the Borrower pursuant to paragraph
(a) above in respect of the first half of the relevant Financial Year;

*provided*, *however*, that in each case, if the Additional Interest payment calculated by IDB Invest for any Additional Interest Calculation Period is negative, the Additional Interest payment shall be equal to zero.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Notwithstanding anything to the contrary above in this Section 2.14, Additional Interest shall accrue at the conclusion of each Additional Interest Calculation Period during which any amount of principal of the IDB Invest Loan remains outstanding (whether or not such principal amount was outstanding for all or only a portion of the relevant Additional Interest Calculation Period).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Subject to the proviso of clause (ii) and the preceding clause (iv), all calculations of the Additional Interest made by IDB Invest from time to time shall be binding absent manifest error.

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

**Section 2.15 Market Disruption.**

2.15.1 If IDB Invest determines that for any Interest Period, Applicable Term SOFR (i) will not adequately reflect the cost of making, funding or maintaining the IDB Invest Loan or (ii) subject to Section 2.16 (*Benchmark Replacement Setting*), cannot be determined by IDB Invest pursuant to the definition thereof (each of the foregoing, a "**Market Disruption Event**"), then the Market Disruption Base Rate, as notified by IDB Invest to the Borrower, shall apply to the IDB Invest Loan for each Interest Period in place of Applicable Term SOFR. Any Market Disruption Base Rate applied pursuant to this Section 2.15.1 shall cease to be used in place of Applicable Term SOFR (a) for any Interest Period that begins after IDB Invest notifies the Borrower that the Market Disruption Event no longer exists or (b) if an agreement is reached between IDB Invest and the Borrower during the Rate Setting Period, as described in Section 2.15.2(ii).

2.15.2 (i) Upon the occurrence of a Market Disruption Event where Applicable Term SOFR will not adequately reflect the cost of making, funding or maintaining the IDB Invest Loan, IDB Invest may elect to apply Applicable Term SOFR to determine the weighted average cost of funds of IDB Invest when calculating the interest rate for the IDB Invest Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Notwithstanding the foregoing, upon the occurrence of a Market Disruption Event, at the Borrower's written request (received by IDB Invest within five (5) Business Days of the Borrower having been notified by IDB Invest of such Market Disruption Event), (a) IDB Invest and the Borrower shall enter into good faith negotiations for a period of not more than thirty (30) days (the "**Rate Setting Period**") to determine a substitute base rate of interest applicable to the IDB Invest Loan; (b) any alternative rate agreed to by IDB Invest and the Borrower during the Rate Setting Period shall apply retroactively from the first day of the affected Interest Period; and (c) if no agreement is reached between IDB Invest and the Borrower during the Rate Setting Period, the Borrower may prepay the relevant portion of the IDB Invest Loan no later than five (5) Business Days following the expiration of the Rate Setting Period. Any such prepayment shall be made together with all interest and costs provided in Section 2.4.3(ii) (*Prepayment Fees and Costs*).

**Section 2.16** **Benchmark Replacement Setting.**

2.16.1 *Benchmark Replacement*. Notwithstanding anything to the contrary herein or in any other Financing Document, upon the occurrence of a Benchmark Transition Event, IDB Invest may amend this Agreement and any other Financing Document to replace the then-current Benchmark with a Benchmark Replacement. Any such amendment will become effective on the fifth (5th) Business Day in New York after IDB Invest has sent a notice of such proposed amendment to the Borrower or such later date as IDB Invest may specify in such notice, without any further action or consent of the Borrower.

2.16.2 *Benchmark Replacement Conforming Changes*. In connection with the use, administration, adoption or implementation of a Benchmark Replacement, IDB Invest will have the right to make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Financing Document, any amendments implementing such Benchmark Replacement Conforming Changes will become effective upon notice to, but without any further action or consent of the Borrower.

2.16.3 *Notices; Standards for Decisions and Determinations.* IDB Invest will promptly notify the Borrower of (i) the implementation of any Benchmark Replacement and (ii) the effectiveness of any Benchmark Replacement Conforming Changes. Any determination, decision or election that may be made by IDB Invest pursuant to this Section 2.16, including any determination with respect to a tenor, rate or adjustment or the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action, will be conclusive and binding absent manifest error and may be made in IDB Invest's sole discretion. In connection with the implementation of any Benchmark Replacement and at the request of IDB Invest, the Borrower shall promptly provide an amendment to or replacement of any affected Note.

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

**Part 3: Promissory Notes**

**Section 2.17** **Notes.**

2.17.1 *Initial Notes*. To further evidence its obligation to repay the IDB Invest Loan, and to pay accrued interest, the Borrower shall issue and deliver to IDB Invest, on or prior to the first Disbursement Date (i) a partially completed promissory note with the principal amount blank and (ii) an instruction letter, each in form and substance acceptable to IDB Invest (collectively, the "**Notes**"). At IDB Invest's request from time to time, the Borrower shall promptly execute and deliver one or more new Notes satisfactory to IDB Invest to substitute for one or more Notes previously delivered hereunder. Upon the receipt of such executed replacement Notes, IDB Invest shall promptly return to the Borrower the original Notes so replaced or an affidavit of loss or destruction in customary form. The issuance, execution and delivery of any Note pursuant to this Agreement shall not be construed as a novation hereunder or under any other agreement between IDB Invest and the Borrower and shall not affect the obligations or rights of the Borrower hereunder, and the rights and claims of IDB Invest under any Note shall not replace or supersede its rights and claims hereunder.

2.17.2 *Replacement Notes* . At the time of the last Disbursement of the IDB Invest Loan, or upon IDB Invest's request thereafter, the Borrower shall deliver to IDB Invest a Note in the total amount of all Disbursements of the IDB Invest Loan (including the amount of such last Disbursement) to be due and payable on the Loan Final Maturity Date; *provided,* that if the Borrower has made any payments of principal pursuant to Section 2.3 (*Repayment*), then the Note shall be for the total amount remaining due under the IDB Invest Loan after such payment(s) of principal have been made, as calculated by IDB Invest and notified to the Borrower.

**ARTICLE 3**

**Representations and Warranties**

**Section 3.1** **Representations and Warranties**.

The Borrower represents and warrants in respect of itself and each of the Guarantors that:

3.1.1 *Organization; Power; Due Authorization*. It is, duly organized and validly existing and (if applicable) in good standing under the Applicable Law of its jurisdiction of organization and is authorized to do business in such jurisdiction and each other jurisdiction where the character of its Property or the nature of its activities makes such authorization necessary. It has all requisite corporate or other organizational power and authority: (i) to own its Property, (ii) to conduct its business as currently conducted, and (iii) to enter into, and to comply with its obligations under, each Financing Document to which it is or will be a party.

3.1.2 *Enforceability*. This Agreement and the other Financing Document to which it is a party are, or when duly executed and delivered, will be (i) duly authorized and executed by it and constitute its valid and legally binding obligation, enforceable in accordance with its terms and (ii) in proper legal form for the enforcement thereof under the Applicable Law of its jurisdiction of organization and, if this Agreement were stated to be governed by such law, it would constitute its legal, valid, and binding obligation under such law.

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

3.1.3 *No Violation*. Neither its execution and delivery of any Financing Document to which it is a party nor its compliance with the terms thereof will: (i) contravene any Applicable Law or Relevant Authorization; (ii) result in any breach of, or constitute a default or require any consent under, any agreement or other arrangement to which it is a party, by which it is bound or to which it may be subject; (iii) result in the creation or imposition of (or an obligation to create or impose) any Lien upon any of its Property; (iv) violate the terms of its organizational documents.

3.1.4 *Relevant Authorizations*. Except for those Authorizations which have not been obtained listed in Schedule 3.1.4, (i) it has all Relevant Authorizations to conduct its business and to enter into, and to comply with its obligations under, each Financing Document to which it is or will be a party; (ii) each such Relevant Authorization has been validly issued and obtained and is in full force and effect; (iii) no Relevant Authorization is the subject of an appeal or judicial or other review by any Authority; (iv) it is in compliance with each Relevant Authorization; and (v) it has no reason to believe that any Relevant Authorization that requires renewal will not be renewed as and when required under Applicable Law without the imposition of additional restrictions or conditions or that any Relevant Authorization will be withdrawn, suspended, cancelled, varied, surrendered or revoked.

3.1.5 *Compliance with Applicable Laws*. It is in compliance with Applicable Law.

3.1.6 *No Default*. No Default has occurred and is continuing.

3.1.7 *Litigation*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No Action is pending (or, to its knowledge, threatened) against it or any of its Affiliates that has had or could reasonably be expected, by itself or together with any other Action, to have a Material Adverse Effect; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) no judgment, order or award has been issued that has had, or could reasonably be expected by itself or together with any other judgment, order or award or pending Action against it or any of its Affiliates to have, a Material Adverse Effect.

3.1.8 *Financial Statements*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The unaudited Financial Statements for the annual period ending on December 31, 2021, the unaudited Financial Statements for the Financial Quarter ending on December 31, 2021, and the audited Financial Statements for the annual period ending on December 31, 2020 delivered to IDB Invest were prepared from and are in accordance with its books and records and give a true and fair view of its financial position, including disclosure of all of its liabilities (contingent or otherwise) as of the date thereof and the results of its operations and cash flow for the period covered thereby, all in conformity with the Accounting Principles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) It has not undertaken or agreed to undertake any material obligation not shown in its Financial Statements most recently delivered to IDB Invest other than its obligations under the Financing Document or, if applicable, its obligations under the SPAC Transaction documents.

3.1.9 *No Material Adverse Effect*. Since December 31, 2020, no condition has existed, or event has occurred that has had or could reasonably be expected to have a Material Adverse Effect.

3.1.10 *Ownership of Property; Liens; Intellectual Property*. It has good, legal, and valid title to (or a valid leasehold interest in) all its Property (including all Intellectual Property required in connection with its business), and with respect to the Secured Property, free of all Liens other than Permitted Liens.

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

3.1.11 *Environmental and Social Compliance*. Each representation made in Section 2 (*E&S Representations and Warranties*) of <u>Annex 2</u> (*Environmental and Social Provisions*) is true and correct.

3.1.12 *Absence of Prohibited Practices; Sanctions Lists*. Neither it nor any of its Affiliates nor any Person acting on its or their behalf (i) has committed or engaged in any Prohibited Practice in connection with any Financing Document or any transaction contemplated by the Financing Documents or (ii) is included on any Internationally Recognized Sanctions Lists or on the IDB Group List of Sanctioned Firms and Individuals.

3.1.13 *Legal Form; Enforceability.* Subject to the immediately following sentence, this Agreement and the other Financing Documents to which it is a party are, or when duly executed and delivered will be, in proper legal form for the enforcement thereof under the Applicable Law of its jurisdiction of organization. Each Note when delivered constitutes a *título ejecutivo* under the Applicable Laws of the Borrower's Country. All formalities required in its jurisdiction of organization for the validity and enforceability of this Agreement and the other Financing Documents (including any necessary translation, notarization, consularization, apostille or legalization, registration, recording or filing with any court, registry or other Authority in its jurisdiction of organization) have been or will be accomplished prior to the first Disbursement Date other than a translation of this Agreement into Spanish, prepared by an official translator.

3.1.14 *Ranking of Obligations.* Its obligations under the Financing Documents to which it is a party to pay the principal of and interest on the IDB Invest Loan and any and all other amounts due thereunder constitute its senior, direct and unconditional unsubordinated obligations and will at all times rank at least equal in right of payment with all of its other present and future unsubordinated indebtedness and other obligations of the Borrower.

3.1.15 *Availability and Transfer of Foreign Currency.* Other than the registration of the IDB Invest Loan with the Colombian Central Bank (*Banco de la República*) which will be satisfied by (a) filing Form No. 6 (*Información de Endeudamiento Externo otorgado a Residentes*) prior to, or simultaneously with, the first Disbursement and (b) Form No. 3 (*Declaración de Cambio*) prior to, or simultaneously with, each Disbursement, each with an authorized foreign exchange intermediary, no foreign exchange control approvals or other Authorizations are required to ensure the availability of Dollars to enable it to perform all of its obligations under the Financing Documents to which it is a party. No other restriction or requirement limits the availability to, or transfer of foreign exchange by, it to make any payments required under any Financing Document to which it is a party.

3.1.16 *Absence of Insolvency Event*. No Insolvency Event has occurred and is continuing or, to its knowledge, has been threatened against it, and it has not taken any action that will result in an Insolvency Event.

3.1.17 *Choice of Law; Consent to Jurisdiction*. Under the Applicable Law of its jurisdiction of organization, the choice of the law of New York to govern this Agreement and the other Financing Documents which are subject to New York law is valid and binding. Its consent to the jurisdiction of the courts provided in Section 7.10.2 (*Applicable Law and Jurisdiction*) is valid, binding and irrevocable, and service of process effected in the manner provided in Sections 7.10.4 and 7.10.6 will be effective to confer personal jurisdiction over it in such courts.

3.1.18 *No Immunity*. Neither it nor any of its Property has any immunity from execution or set-off with respect to its assets, or suit with respect to its obligations under this Agreement, the Notes or any other Financing Document.

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

3.1.19 *Provision of Information, Etc*. All written information provided by it to IDB Invest was, on the date provided, and continues to be, true and accurate in all material respects and not misleading in any material respect nor is any information omitted from such information that makes the information provided misleading in any material respect (except to the extent that it has provided to IDB Invest written updates or amendments to such previously furnished information reflecting changes in circumstance subsequent to the provision of such information).

3.1.20 *Taxes*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (a) All of its Tax Returns that are required by Applicable Law to be filed have been duly filed; (b) all Taxes due and payable by it, or upon its Property, income or assets, which are due and payable or required to be deducted or withheld, have been paid or deducted or withheld and properly paid to the appropriate Authority, except for Taxes being diligently contested in god faith through the appropriate proceedings, with respect to which reserves have been established.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Except as otherwise disclosed in the Financial Statements referred to in Section 3.1.8 (*Financial Statements*), it has not received notice of (a) any pending audits, examinations, investigations, proceedings or claims with respect to any Taxes or (b) any Lien with respect to Taxes that has been filed against any of its Property, nor to its knowledge, in either case, has any such action been threatened.

3.1.21 *Affiliate Transactions*. As of the Effective Date, there have been no Affiliate Transactions except those carried out in the ordinary course of business and at arm's-length.

3.1.22 *Status of Security*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Security Documents create, or when executed and duly registered will create, valid and enforceable first priority Liens (or other interests or rights of the kind purported to be created thereby) over all of the Secured Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) It has not received any notice of any adverse claim by any Person in respect of its ownership of, or entitlement to, the Secured Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Secured Property is not, and will not at any time be, subject to any Lien other than pursuant to the Security Documents.

3.1.23 *Borrower's Share Capital.* The Share Capital of the Borrower consists solely of the number of shares and classes of capital stock set forth in <u>Schedule 6</u> (*Borrower's Share Capital*), all of which are held beneficially and of record by the Persons listed in <u>Schedule 6</u> (*Borrower's Share Capital*). No other Person holds any Share Capital of, or any Equity Rights in respect of, the Borrower.

3.1.24 *Subsidiaries*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Merqueo Brazil, Merqueo International, and Merqueo Mexico are the only direct or indirect Subsidiaries of the Borrower as of the Effective Date and the Borrower (and, if applicable, Merqueo International) holds the following (a) number of fully paid and non-assessable shares of each of its Subsidiaries and (b) percentage ownership in each class of capital stock of each of its Subsidiaries:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) *Merqueo Brazil.* 

---

| | | | |
|:---|:---|:---|:---|
| **Shareholder** | **Type of Share** | **Number of Shares** | **Participation** |
| The Borrower | Common | 77516554 | 99% |
| Merqueo International | Common | 9900 | 1% |
| **Total** |  | **77526454** | **100%** |

---

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) *Merqueo International.* 

---

| | | | |
|:---|:---|:---|:---|
| **Shareholder** | **Type of Share** | **Number of Shares** | **Participation** |
| The Borrower | Common | 1000000 | 100% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) *Merqueo Mexico.* 

---

| | | | |
|:---|:---|:---|:---|
| **Shareholder** | **Type of Share** | **Number of Shares** | **Participation** |
| The Borrower | Common | 246331597 | 98.47% |
| Merqueo International | Common | 3839017 | 1.53% |
| **Total** |  | **250170714** | **100%** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Borrower (and, if applicable, Merqueo International) has good, legal, and valid title to all of its Subsidiaries' shares, free of all Liens other than Permitted Liens.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Other than its direct or indirect ownership of Merqueo Brazil, Merqueo International, and Merqueo Mexico and any Subsidiaries formed after the Effective Date in accordance with Section 5.2.14 (*Negative Covenants*), neither the Borrower nor any of its Subsidiaries holds, directly or indirectly, any Share Capital or Equity Rights of any other Person.

3.1.25 *No Omissions*. No representation or warranty in this Article 3 (*Representations and Warranties*) omits any matter the omission of which makes such representation or warranty misleading.

**Section 3.2** **Acknowledgment and Warranty**.

The Borrower acknowledges that it makes the representations and warranties contained in Section 3.1 (*Representations and Warranties*) with the intention of inducing IDB Invest to enter into this Agreement and the other Financing Documents and that IDB Invest has entered into this Agreement and the other Financing Documents on the basis of, and in full reliance upon, each such representations and warranties.

**ARTICLE 4**

**Conditions Precedent to Disbursement**

**Section 4.1** **Conditions Precedent to First Disbursement**.

The first Disbursement is subject to the fulfillment in form and substance, and in a manner, satisfactory to IDB Invest, not later than three (3) Business Days prior to the applicable Disbursement Date of the following conditions; *provided,* that any condition that is specified to be required to be met on the Disbursement Date shall be satisfied on or before the Disbursement Date as a condition to the making of the Disbursement to be made on such date:

4.1.1 *Organizational Documents; Corporate Resolutions; Incumbency*. IDB Invest has received a certificate from the Borrower substantially in the form of <u>Exhibit 2</u> (*Form of Borrower's Certificate Regarding Organizational Documents/Corporate Resolutions*) signed by an Authorized Representative of the Borrower and each Guarantor and dated as of the date of the relevant Disbursement Request and attaching all required documents.

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

4.1.2 *Environmental and Social*. The conditions in Section 3 (*E&S Conditions Precedent to First Disbursement*) of <u>Annex 2</u> (*Environmental and Social Provisions*) have been satisfied.

4.1.3 *Legal Opinions*. IDB Invest has received a legal opinion dated as of the first Disbursement Date and addressed to each Senior Lender from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Borrower's in-house legal counsel, substantially in the form attached as Exhibit 8 (*Form of Borrower's Legal Opinion*);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Gómez-Pinzón Abogados S.A.S., the Borrower's Country counsel to the Senior Lenders, in form and substance acceptable to IDB Invest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Becker, Glynn, Muffly, Chassin & Hosinski LLP, New York counsel to the Senior Lenders, in form and substance acceptable to IDB Invest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Barbosa, Müssnich e Aragão Advogados, Brazil counsel to the Senior Lenders, in form and substance acceptable to IDB Invest (but which shall not cover the enforceability of the Guarantee Agreement); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Mijares Angoitia Cortés y Fuente, S.C., Mexico counsel to the Senior Lenders, in form and substance acceptable to IDB Invest (but which shall not cover the enforceability of the Guarantee Agreement).

4.1.4 *Financial Statements.* IDB Invest has received the Financial Statements referred to in Section 3.1.8(i) (*Financial Statements*).

4.1.5 *Financing Documents*. Each Financing Document has been duly authorized and executed and delivered by all parties thereto and is in full force and effect in accordance with its terms, and all formalities required in the Borrower's Country for the validity and enforceability of this Agreement and the other Financing Documents (including any necessary translation (sworn or otherwise), notarization, consularization, apostille or legalization, registration, recording or filing with any court, registry or other Authority in the Borrower's Country) have been or will be accomplished prior to the first Disbursement Date.

4.1.6 *IDB Invest Board Approval.* The Board of Executive Directors of IDB Invest has approved the IDB Invest Loan.

4.1.7 *Security*. The Security has been duly created and perfected; the Security Documents have been duly executed and, if required, have been registered in the appropriate public registry, creating valid and enforceable first priority Liens over the Secured Property, and the Secured Property shall be satisfactory in form and substance to IDB Invest.

4.1.8 *Process Agent* . IDB Invest has received (i) a letter substantially in the form of <u>Exhibit 3</u> (*Form of Borrower's Service of Process Letter*) relating to the appointment by the Borrower and each Guarantor of an agent for service of process acceptable to IDB Invest and (ii) in respect of Merqueo Mexico only, a notarial power of attorney for acts of administration to such Process Agent (in form and substance satisfactory to IDB Invest), together with evidence of such Process Agent's unconditional acceptance of such appointment and power of attorney to act as such until the date that is six (6) months after the Loan Final Maturity Date.

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

4.1.9 *Authorization to Auditor*. IDB Invest has received a copy of the authorization to the Auditor, substantially in the form of <u>Exhibit 4</u> (*Form of Authorization to Auditor*), signed by an Authorized Representative of the Borrower and countersigned by the Auditor (to the extent such Auditor is willing to countersign the same, after the Borrower has made commercially reasonable efforts to request such countersignature).

4.1.10 *BlaO Loan Disbursement*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) BlaO has made disbursement(s) of the BlaO Loan to the Borrower in an aggregate amount of at least eight million Dollars ($8,000,000); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Borrower has simultaneously requested a disbursement of the BlaO Loan under the BlaO Loan Agreement which, when added to the prior disbursement(s) of the BlaO Loan, will result in an aggregate principal amount outstanding of the BlaO Loan equal to at least sixteen million Dollars ($16,000,000).

4.1.11 *Series C+ Investment; Note Conversion*. (i) The investment in the Series C+ Preferred Shares of the Borrower under the Subscription Agreement among the Borrower, IDCV MERQUEO FUEL K/S and the other parties thereto dated as of October 25, 2021 has been consummated in all material respects in accordance with its terms, with aggregate proceeds received by the Borrower equal to at least thirty-six million two hundred fifty thousand Dollars ($36,250,000); and (ii) the Borrower does not have any convertible instruments outstanding.

4.1.12 *Certain Corporate Matters*. (i) Merqueo Brazil and Merqueo Mexico have concluded their respective capitalization processes and, if requested by IDB Invest, it has received satisfactory evidence thereof; and (ii) the organizational documents of Merqueo Mexico have been amended, in form and substance satisfactory to IDB Invest, in order to permit Merqueo Mexico to enter into the Guarantee Agreement and the BlaO Guarantee Agreement.

**Section 4.2** **Conditions Precedent to All Disbursements**.

All Disbursements (including, except where otherwise stated, the first Disbursement) are subject to the fulfillment in form and substance, and in a manner, satisfactory to IDB Invest, not later than three (3) Business Days prior to the applicable Disbursement Date of the following conditions; *provided*, that any condition that is specified to be required to be met on the Disbursement Date shall be satisfied on or before the Disbursement Date:

4.2.1 *Disbursement Request.* IDB Invest has received a Disbursement Request with respect to such Disbursement in accordance with Section 2.2 (*Disbursement Procedure*) certifying as to the intended use of proceeds, which shall comply with Section 5.1.1 (*Use of Proceeds*) and the satisfaction of all applicable conditions to Disbursement.

4.2.2 *No Default.* No Default exists or will occur as a result of the making of such Disbursement.

4.2.3 *Representations and Warranties.* All representations and warranties made by the Borrower in Article 3 (*Representations and Warranties*) are true and correct with reference to the facts and circumstances existing on the date of the applicable Disbursement Request and on the applicable Disbursement Date, with the same effect as if made on each such date, after giving effect to the proposed Disbursement to be made on such date; *provided*, that references to Financial Statements shall be deemed to refer to the most recent Financial Statements delivered to IDB Invest as of such date; *provided further*, that references to the Subsidiaries under Section 3.1.24 (*Subsidiaries*) shall be deemed to include any existing Subsidiaries formed after the Effective Date in compliance with Section 5.1.14 (*Subsidiaries*).

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

4.2.4 *Fees and Expenses*. The Borrower has paid: (i) all fees due prior to or as of the relevant Disbursement Date pursuant to any Fee Letter or other Financing Document, and IDB Invest has been reimbursed for all Costs, (ii) all fees and expenses of IDB Invest's legal counsels, and (iii) any other fees and expenses required by any Financing Document to be reimbursed by the relevant Disbursement Date, or the Borrower has made arrangements satisfactory to IDB Invest that such payments will be made.

4.2.5 *Subsequent Legal Opinions.* If IDB Invest requests, IDB Invest has received in form and substance acceptable to IDB Invest a legal opinion or opinions from counsel acceptable to IDB Invest covering such matters as IDB Invest may reasonably require.

4.2.6 *Material Adverse Effect.* Since the Effective Date, nothing has occurred that has had or could reasonably be expected to have a Material Adverse Effect.

4.2.7 *Environmental and Social.* All conditions set forth in Section 4 (*E&S Conditions Precedent to All Disbursements*) of <u>Annex 2</u> (*Environmental and Social Provisions*) have been satisfied*.*

4.2.8 *Financial Covenants*. The Borrower shall be in compliance with Section 5.1.13 (*Financial Covenants*) after taking into account the amount of the Disbursement to be made and any other Debt incurred by the Borrower and any capital contribution made after the date of the latest Financial Statements provided pursuant to Section 5.3.1 (*Audited Annual Financial Statements*) or Section 5.3.2 (*Unaudited Quarterly Financial Statements*).

4.2.9 *Notes.* On or before the applicable Disbursement Date, the Borrower shall have duly executed and delivered to IDB Invest a Note in the amount of the requested Disbursement dated as of such Disbursement Date which, when delivered, shall constitute a *título ejecutivo* under the Applicable Laws of the Borrower's Country.

4.2.10 *Authorizations.* Except as disclosed in Schedule 3.1.4, all Relevant Authorizations are in full force and effect and copies thereof have been delivered to IDB Invest if requested.

4.2.11 *Key Performance Indicators.* The Borrower is in compliance with the Key Performance Indicators.

4.2.12 *Colombian Central Bank Registration.* In accordance with Applicable Law, the relevant Disbursement has been registered with the Colombian Central Bank (*Banco de la República*) (or evidence that such registration has been initiated on or before the proposed Disbursement Date has been delivered to IDB Invest).

**ARTICLE 5**

**Covenants**

**Section 5.1** **Affirmative Covenants**.

The Borrower shall, and shall cause each of its Subsidiaries to:

5.1.1 *Use of Proceeds*. Cause the proceeds of the IDB Invest Loan to be applied exclusively in the Borrower's Country, Mexico and Brazil, for (i) the expansion of current operations, whether conducted directly or indirectly through any of the Guarantors, (ii) working capital needs, (iii) capital expenditures needs, and (iv) in the case of the Interest Reserve Amount, payments of interest on the Loan, all in accordance with Applicable Law and the terms of this Agreement; *provided*, that the proceeds of all Disbursements shall not be used to finance activities listed in the List of Excluded Activities.

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

5.1.2 *Existence; Continuing Engagement in Business.* Maintain its corporate existence and take all reasonable actions necessary to obtain and maintain in full force and effect all Relevant Authorizations, all Intellectual Property required in connection with its Business and all other rights, privileges and franchises necessary or desirable in the normal conduct of its Business.

5.1.3 *Conduct of Business; Compliance with Applicable Laws*. Conduct its business in accordance with prudent industry practice, the Relevant Authorizations and all other Applicable Laws.

5.1.4 *Systems; Books and Records*. Maintain an accounting system, a management information system and books of account and other records adequate to reflect accurately and fairly its financial condition and the results of its operations in conformity with the Accounting Principles, Applicable Law and prudent industry practice.

5.1.5 *Access to Premises and Records*. Upon IDB Invest's request, permit representatives and staff of

IDB Invest (including the MICI) to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) visit and inspect any premises where the Borrower's or any Subsidiary's business is conducted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) inspect all facilities, plant and equipment of the Borrower or any Subsidiary and examine and make abstracts and/or reproductions of their books of account and records, including records pertaining to compliance with Environmental and Social Requirements (as defined in <u>Annex 2</u> (*Environmental and Social Provisions*)) and Prohibited Practices; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) have access to the Borrower's and its Subsidiaries' employees, officers, agents, Auditors, contractors and/or subcontractors; *provided*, that in the case of MICI, such access shall be for the purpose of carrying out the MICI's role.

5.1.6 *Auditor*. Maintain an Acceptable Auditor as its auditor. In the event of any change in the Auditor to another Acceptable Auditor, the Borrower shall deliver to IDB Invest no later than five (5) Business Days following the Borrower's appointment of a new Acceptable Auditor, a written notification of such appointment.

5.1.7 *Ranking of Obligations*. Take such action as may be necessary to ensure that, at all times, the Obligations are senior, direct and unconditional unsubordinated obligations of the Borrower that rank at least equal in right of payment with all other present and future unsubordinated and unsecured indebtedness and other obligations of the Borrower, other than those preferred solely by the Applicable Laws of the Borrower's Country relating to bankruptcy, insolvency, liquidation or other similar laws of general application.

5.1.8 *Environmental and Social Compliance*. Comply with Sections 5 (*E&S Affirmative Covenants*) and 6 (*E&S Negative Covenants*) of <u>Annex 2</u> (*Environmental and Social Provisions*).

5.1.9 *Cooperation*. If IDB Invest notifies the Borrower that a misrepresentation may have been made with respect to Section 3.1.12 (*Absence of Prohibited Practices; Sanctions Lists*), or a breach under Section 5.2.7 (*Prohibited Practices*), Section 5.2.8 (*List of Excluded Activities*) or Section 5.3.3(ii)(e) (*Information -Notices*) has occurred, then (i) cooperate in good faith with IDB Invest and its representatives in determining whether such misrepresentation or breach has occurred, (ii) respond promptly (and in any event within five (5) days) with reasonable detail to any notice from IDB Invest relating thereto, and (iii) upon IDB Invest's request, furnish documentary support for such response.

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

5.1.10 *Taxes*. (i) Pay and discharge all Taxes imposed upon its Property, income or profits and deduct or withhold all Taxes required to be deducted or withheld and properly pay such Taxes to the appropriate Authority when required under Applicable Law, provided, that neither the Borrower nor any Subsidiary shall be required to pay any such Tax which is being diligently contested in good faith by appropriate proceedings with respect to which it has established adequate reserves; and (ii) file all Tax Returns as and when required by Applicable Law to be filed by it; and (iii) pay any Tax imposed by any Authority of its jurisdiction of organization or operation, if any, in relation to the execution, delivery, registration, notarization or enforcement of any Financing Document.

5.1.11 *Insurance*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) Maintain insurance policies with reputable insurers in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) permit IDB Invest to review copies of any insurance policy of the Borrower or any of its Subsidiaries, if reasonably requested by IDB Invest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) promptly notify the relevant insurer of any claim by the Borrower under any policy written by that insurer and diligently pursue that claim, except for immaterial claims where, in the reasonable judgment of the Borrower or any of its Subsidiaries, the cost to pursue such claim would exceed the amount of such claim; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) use any insurance proceeds it receives including from IDB Invest as loss payee with respect to any Secured Property for the loss of, or damage to, any material asset, or to compensate any Person that has suffered a loss, solely (i) to replace or repair that asset, (ii) pay such Person as applicable or (iii) to prepay the IDB Invest Loan within five (5) Business Days of receipt thereof.

5.1.12 *Perfection and Maintenance of Security*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) With respect to any Security Document entered into after the Effective Date, file for registration no later than five (5) Business Days, and register no later than ninety (90) days, in each case after the execution thereof, such Security Document at the relevant public registry in the Borrower's Country and provide to IDB Invest a copy of evidence of such registration within thirty (30) days of receipt thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) At all times, maintain the Security free and clear of all Liens in accordance with the Security Documents for the sole and exclusive benefit of the Senior Lenders and, at the request of IDB Invest, perform all acts and make, execute, deliver and file all documents (including, if applicable, any financing statements, registration statements, continuation statements or other statements) or instruments required in order to ensure that the Senior Lenders at all times hold a first priority perfected Lien in all Secured Property pursuant to the terms of the Security Documents, including, at IDB Invest's request, defending, at the Borrower's expense, the Senior Lenders' right, title and interest to the Security and the Secured Property.

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

5.1.13 *Financial Covenants*. Maintain at all times the following ratios (the "**Financial Covenants**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) beginning with the second Financial Quarter of the 2023 Financial Year, a Minimum Prospective DSCR of not less than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 1.20:1 for the second, third and fourth Financial Quarters of the 2023 Financial Year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) 1.25:1 for each Financial Quarter of the 2024 Financial Year; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) 1.30:1 for each Financial Quarter thereafter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) beginning with the second Financial Quarter of the 2023 Financial Year a Minimum Historical DSCR of not less than 1.30:1; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) beginning with the fourth Financial Quarter of the 2024 Financial Year, a Maximum Net Debt to Consolidated EBITDA Ratio of not more than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 3:1 for the fourth Financial Quarter of the 2024 Financial Year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) 2.5:1 for each Financial Quarter of the 2025 Financial Year; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) 2:1 for each Financial Quarter thereafter.

For any determination date for which Financial Statements are not available, the Borrower shall calculate its compliance with this Section 5.1.13 on such date based on documentation available to it (including financial records, reports and any other documents acceptable to IDB Invest), which calculations and documenting basis shall be provided to IDB Invest upon its request.

5.1.14 *Beneficial Ownership*. Cooperate with and support IDB Invest's efforts to obtain beneficial ownership information from upstream holders of Share Capital of the Borrower.

5.1.15 *Compliance with Laws against Money Laundering and Combating the Financing of Terrorism*. Adopt and comply with internal policies, procedures, and controls for AML/CFT that, to IDB Invest's satisfaction, are in compliance with Applicable Law and consistent with its business and customer profile and international AML/CFT best practices.

5.1.16 *Most Favored Lender*. If the Borrower or any Subsidiary enters into, amends or modifies documents evidencing or governing Debt (other than (i) Debt permitted under Section 5.2.12 (*Permitted Financial Debt*), (ii) Debt incurred under convertible note instruments issued in connection with equity fundraising, (iii) Debt extended to a Subsidiary of the Borrower by the Borrower or another Subsidiary of the Borrower, or (iv) if a SPAC Transaction is consummated, Debt extended to the Borrower or a Subsidiary of the Borrower by the Borrower's holding company) to which the Borrower or any Subsidiary is bound that contain, or are amended and modified to contain: (a) any covenant, event of default or remedy that is not provided for in this Agreement or any other Financing Document, or (b) any covenant or Event of Default that is more restrictive than the same or similar covenant or event of default provided in this Agreement or any other Financing Document (any or all of the foregoing, collectively, "**Most Favored Lender Provisions** "), the Borrower shall, at IDB Invest's option and promptly upon request, execute an amendment to this Agreement, in form and substance satisfactory to IDB Invest, to include such Most Favored Lender Provisions.

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

5.1.17 *Amendment to Merqueo Brazil's Organizational Documents*. Ensure that, within thirty (30) days following the first Disbursement Date hereunder, the Amendment to Merqueo Brazil's Organizational Documents, in form and substance satisfactory to IDB Invest, is duly adopted and approved by the shareholders of Merqueo Brazil and duly registered with the Board of Trade of the State of São Paulo (*Junta Comercial do Estado de São Paulo*) in due course and, in case the Board of Trade of the State of São Paulo (*Junta Comercial do Estado de São Paulo*) presents any additional requirements (*exigências*) in connection with such registration, duly and timely comply with any such additional requirements (*exigências*), so that at all times the original filing number of the Amendment to Merqueo Brazil's Organizational Documents will be in place to ensure that the effects of such registration are retroactive to the date of the Amendment to Merqueo Brazil's Organizational Documents.

5.1.18 *Relevant Authorizations.* Within the applicable time periods indicated in Schedule 3.1.4, obtain the Authorizations described in Schedule 3.1.4 and provide evidence thereof to IDB Invest.

5.1.19 *Compliance with the Corporate Governance Action Plan.* Adopt and comply with the Corporate Governance Action Plan within the relevant time periods set forth in Schedule 8 (*Corporate Governance Action Plan*).

**Section 5.2** **Negative Covenants**.

The Borrower shall not, and shall cause each of its Subsidiaries not to:

5.2.1 *Limitation on Restricted Payments*. Make any Restricted Payment unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) such Restricted Payment is made after the date of the First Repayment Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) no Default has occurred and is continuing or would exist after giving effect to such Restricted Payment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Borrower is, and, after giving effect to such Restricted Payment, would be, in compliance with Section 5.1.13 (*Financial Covenants*); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) in the case of dividends, distributions on the Share Capital of the Borrower (other than dividends or distributions payable in shares of the Borrower) or any payment of subordinated debt, such Restricted Payment is made from net income of the current Financial Year or retained earnings (excluding any amount resulting from the revaluation of any of the Borrower's assets); *provided*, that, for the avoidance of doubt, the foregoing shall not restrict Subsidiaries of the Borrower from making Restricted Payments to the Borrower.

5.2.2 *No Liens.* Create, or permit to exist: (i) any Liens over any of its Property (including Intellectual Property, the Share Capital of its Subsidiaries, or any trade accounts) other than Permitted Liens; or (ii) any Lien over any of the Borrower's Share Capital, to the extent any such Lien is created in connection with the incurrence of debt financing for the benefit of the Borrower or any of its Subsidiaries (or, if a SPAC Transaction is consummated, for the benefit of the Borrower's holding company).

5.2.3 *Maintenance of Existence; Fundamental Changes to the Borrower*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Change its legal form or amend or modify its organizational documents in any manner that materially and adversely affects IDB Invest's rights or remedies under the Financing Documents; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Undertake or permit any merger, consolidation, spin-off or reorganization unless: (a) it shall be the surviving entity; and (b) immediately prior to or after giving effect to such transaction (and treating all liabilities assumed as a result of such transaction as having been incurred by it at the time of such transaction), no Default shall exist.

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

5.2.4 *Affiliate Transactions*. Enter into any transaction, including the purchase, sale, lease or exchange of Property or the rendering of any service, with any Affiliate (an ***Affiliate Transaction***), other than transactions entered into in the ordinary course of its business on fair and reasonable terms substantially as favorable to the Borrower as those that might be obtained in a comparable arms-length transaction at the time from a Person who is not an Affiliate.

5.2.5 *Scope of Business*. Change the nature or scope of the Business as of the date hereof, other than businesses reasonably related or ancillary to the Business.

5.2.6 *Accounting Changes*. Change its Financial Year or make or permit any change in accounting policies or reporting practices, except as required to comply with the Accounting Principles or Applicable Law.

5.2.7 *Prohibited Practices*. Commit, engage in, or be involved with (or authorize or permit any Affiliate or any other Person acting on its behalf to commit, engage in, or be involved with) any Prohibited Practice with respect to any transaction contemplated by any Financing Document.

5.2.8 *List of Excluded Activities*. Engage in, or be involved with, any activity included in the List of Excluded Activities.

5.2.9 *Sanctions Lists*. Be included on any Internationally Recognized Sanctions Lists or the IDB Group List of Sanctioned Firms and Individuals.

5.2.10 *Limitation on Transfer of Intellectual Property*. Sell, lease, transfer or otherwise dispose of any of its Intellectual Property (except for (i) any lease or license entered into between the Borrower and/or one or more of its Subsidiaries in the ordinary course of business and (ii) any license entered into between the Borrower and/or one or more third parties in connection with the services provided by the Borrower to its customers in the ordinary course of business).

5.2.11 *No Restriction of Dividends*. Directly or indirectly, create or otherwise permit to exist or become effective any restriction on the ability of any Subsidiary of the Borrower to: (i) pay dividends or make any other distributions on its capital stock or any other equity interest directly or indirectly owned by the Borrower; or (ii) pay any Financial Debt owed to the Borrower or any of its Subsidiaries; or (iii) make loans or advances to the Borrower or any of its Subsidiaries except under or by reason of Applicable Laws.

5.2.12 *Permitted Financial Debt*. Incur, assume or permit to exist any Financial Debt other than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) the Senior Loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Financial Debt in the form of a convertible notes entered into between the Borrower and equity investors, so long as each such convertible note: (a) has an original term of no more than eighteen (18) months; and (b) is mandatorily convertible into Share Capital at the conclusion of such term;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iii) Financial Debt incurred in respect of the Warehouse Leases;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iv) until December 31, 2024:

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Financial Debt incurred in respect of leases of refrigerators and racks, in an aggregate amount outstanding
at any one time not to exceed three million five hundred thousand Dollars ($3,500,000) or the equivalent thereof in any other currency;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Financial Debt incurred under working capital lines of credit secured by Cash accounts, in an aggregate
amount outstanding at any one time not to exceed two million Dollars ($2,000,000) or the equivalent thereof in any other currency; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (v) after December 31, 2024, Financial Debt so long as the Borrower remains in compliance with Section 5.1.13 (*Financial Covenants*) before and after the incurrence of such Financial Debt.

For the avoidance of doubt, this Section 5.2.12 (1) does not modify, and is without prejudice to the compliance obligations in respect of, the Financial Covenants and (2) does not apply to trade accounts in the ordinary course of business payable within ninety (90) days.

5.2.13 *Prepayment of BlaO Loan*. Make any prepayment of the BlaO Loan after the third (3rd) anniversary of the Effective Date unless the Borrower simultaneously prepays the IDB Invest Loan on a *pro rata* basis in accordance with Section 2.4.1 (*Voluntary Prepayments*).

5.2.14 *Subsidiaries*. Form or own any Subsidiaries (excluding the Guarantors) or otherwise acquire or own any portion of the Share Capital of any other Person, except that the Borrower may form additional Subsidiaries so long as: (i) prior notice is given thereto to IDB Invest; (ii) such Subsidiary enters into a guarantee of the Obligations, substantially similar to the Guarantee Agreement and in form and substance satisfactory to IDB Invest; (iii) a pledge over the Share Capital of such newly-formed Subsidiary is granted to the Senior Lenders to secure the Obligations and the corresponding amounts due in respect of the IDB Invest Loan, in form and substance satisfactory to IDB Invest; and (iv) IDB Invest has received such legal opinions as it may require in connection with the foregoing, including in respect of the enforceability of the above-described guarantee and share pledge.

**Section 5.3** **Information**.

The Borrower shall deliver to IDB Invest:

5.3.1 *Audited Annual Financial Statements*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) As soon as available but in any event by June 15, 2022, one (1) copy of the Borrower's Consolidated, and each of its Subsidiaries' unconsolidated, audited Financial Statements for the 2021 Financial Year setting forth in comparative form the corresponding figures for the 2020 Financial Year and all associated notes to such statements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) as soon as available but in any event within ninety (90) days after the end of each Financial Year thereafter, one (1) copy of the Borrower's Consolidated, and each of its Subsidiaries' unconsolidated, audited Financial Statements for such Financial Year setting forth in comparative form the corresponding figures for the previous Financial Year and all associated notes to such statements.

5.3.2 *Unaudited* Quarterly *Financial Statements*. As soon as available but in any event within forty-five

(45) days after the end of each of the four (4) Financial Quarters of each Financial Year: (i) one (1) copy of the unaudited Financial Statements of the Borrower (on a Consolidated Basis) and each of its Subsidiaries (on an unconsolidated basis) for the Financial Quarter most recently ended as of such date setting forth in comparative form the corresponding figures for the corresponding periods of the previous Financial Year and all associated notes to such statement; and (ii) a certificate of an Authorized Representative of the Borrower substantially in the form of <u>Exhibit 6</u> (*Form of Borrower's Quarterly Certificate*), which shall include an explanation of the key operating variables and calculations in reasonable detail demonstrating compliance with the Financial Covenants substantially in the form of <u>Exhibit 7</u> (*Form of Financial Ratios Compliance Certificate*), or detailing any non-compliance.

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

5.3.3 *Notices*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Within five (5) days after receipt (or delivery) by the Borrower or any Subsidiary, copies of all material notices from (or to) any Authority or otherwise related to or affecting the Borrower or any Subsidiary, the IDB Invest Loan, the use of Loan proceeds, or the Borrower's or any Subsidiary's ability to perform its obligations hereunder or under any other Financing Documents, including notices from any Authority seeking to terminate, revoke, suspend or cancel any Relevant Authorization of the Borrower, together with copies of such notices, if written.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Promptly (and in any event within five (5) days) upon becoming aware of the occurrence thereof, notice of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any Default, specifying the nature thereof and any steps the Borrower is taking to remedy it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any Mandatory Prepayment Event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any Action (commenced or ongoing) that has had or could reasonably be expected to have a Material Adverse
Effect, specifying the nature of the proceedings and the steps the Borrower is taking or proposes to take with respect thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any actual or proposed material change in the business or operations of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any Prohibited Practice by the Borrower, its Affiliates, or any Person acting on its behalf with respect
to the IDB Invest Loan or any transaction contemplated by this Agreement, or any other Financing Document, or the imposition by any international
financial institution of any sanction on the Borrower or any Subsidiary for any Prohibited Practice, including any information in its
possession concerning such situation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the commencement of any steps taken in connection with, or in anticipation of: (1) a SPAC Transaction,
any material developments relating thereto, and the conclusion of any such SPAC Transaction; or (2) the listing of the Borrower's
or its parent company's Share Capital on a U.S. securities exchange registered with the U.S. Securities and Exchange Commission
and any material developments relating thereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any other event or condition that has had or could reasonably be expected to have a Material Adverse Effect
and the steps the Borrower or the relevant Subsidiary is taking to remedy it.

5.3.4 *Communications with Auditor*. Promptly upon the Borrower's receipt thereof, a copy of any management letter or other material communication sent by the Auditor (or any other accountants retained by the Borrower or any Subsidiary) to the Borrower or any Subsidiary in relation to the Borrower's or any Subsidiary's financial, accounting, management information or other systems, policies, management or accounts (if not otherwise delivered under this Section 5.3).

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

5.3.5 *Development Indicators*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Within forty-five (45) days after the end of each Financial Year, deliver a report on development indicators for such Financial Year in the form of, and with the information listed in, <u>Schedule 3</u> (*Development Indicators*); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) upon the full prepayment or repayment of the IDB Invest Loan, no later than the date of the relevant prepayment or repayment, an updated report in the form of, and with the information and addressing the topics listed in, <u>Schedule 3</u> (*Development Indicators*).

5.3.6 *Beneficial Ownership Information*. Provide to IDB Invest, at least annually, and at IDB Invest's request, updated information regarding the direct and indirect ownership of the Borrower to the extent such information is made available to the Borrower by its equity owners (and, in connection therewith, the Borrower shall use its best efforts to procure the disclosure of such information from its equity owners).

5.3.7 *Founders' Agreements*. Provide to IDB Invest, as soon as available, and at IDB Invest's request, copies of any and all of the Founders' employment or services agreements.

5.3.8 *Board Presentations*. Provide to IDB Invest, as soon as it is available after the end of each Financial Quarter and each Financial Year, and at IDB Invest's request, the management statements and presentations delivered to the board of directors of the Borrower showing the financial performance of the Borrower and its Subsidiaries, to the extent that disclosing such information does not create a conflict of interest for the Borrower or would constitute a breach the Borrower's confidentiality obligations (as reasonably determined by the Borrower based on knowledgeable advice from legal counsel).

5.3.9 *Amendment to Merqueo Brazil's Organizational Documents*. Provide to IDB Invest, as soon as available, but no later than twenty (20) days following the date of the Amendment to Merqueo Brazil's Organizational Documents, a true, correct, complete and fully-executed copy of the Amendment to Merqueo Brazil's Organizational Documents, together with evidence of its proper filing with the Board of Trade of the State of São Paulo (*Junta Comercial do Estado de São Paulo*).

5.3.10 *Additional Information*. Such information as IDB Invest may reasonably request with respect to the Borrower or any Subsidiary, its Property, the IDB Invest Loan and the Borrower's and each Subsidiary's performance of its obligations under the Financing Documents.

**Section 5.4 Environmental and Social.** The Borrower shall deliver to IDB Invest the information required in Section 5 (*E&S Information Covenants*) of <u>Annex 2</u> (*Environmental and Social Provisions*)*.*

**ARTICLE 6**

**Events of Default**

**Section 6.1** **Events of Default**.

It shall be an Event of Default if:

6.1.1 *Failure to Pay or Perform under Financing Documents*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Borrower or any Guarantor fails to pay when due (a) any Obligation, including principal of, or interest on, the IDB Invest Loan, or (b) any other loan from IDB Invest to the Borrower or any Guarantor (other than the IDB Invest Loan) or any reimbursement obligation in respect of a guarantee provided by IDB Invest for the Borrower's or any Guarantor's benefit.

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Borrower or any of its Subsidiaries fails to perform of observe any term, covenant or agreement contained in Section 2.17 (*Notes*), Section 5.1.1 (*Use of Proceeds*), Section 5.1.2 (*Existence; Continuing Engagement in Business*), Section 5.1.7 (*Ranking of Obligations*), Section 5.1.8 (*Environmental and Social Compliance*), Section 5.2 (*Negative Covenants*) and Section 5.3.3 (*Notices*).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Borrower or any of its Subsidiaries fails to comply with any of its other obligations contained in this Agreement or any other Financing Document or any other agreement between the Borrower and IDB Invest (other than an obligation referred to elsewhere in this Section 6.1); *provided*, that if capable of being cured, such failure has continued for thirty (30) days after the earlier of (a) notice of such failure to comply being provided by IDB Invest or (b) the date on which the Borrower or such Subsidiary becomes, or should have become, aware of such failure; *provided further*, that, for the avoidance of doubt, no cure period shall apply if in the determination of IDB Invest, such failure has had or could reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Any Financing Document or any material term thereof (a) is revoked, becomes void or ceases to be in full force and effect and enforceable, (b) becomes unlawful, (c) is repudiated by any party thereto or (d) has its legality, validity or enforceability challenged by any Person.

6.1.2 *Failure to Pay or Perform with respect to the BlaO Loan*. (i) The Borrower fails to pay the BlaO Loan or fails to perform any of its obligations when due or as required under the BlaO Loan Agreement and any such failure continues for more than any applicable period of grace or (ii) the BlaO Loan is accelerated, becomes subject to mandatory prepayment or redemption or, prior to its stated maturity, otherwise becomes due or is placed on demand.

6.1.3 *Failure to Pay or Perform with respect to Other Debt*. (i) The Borrower or any Subsidiary fails to pay any Debt (other than the Obligations) or fails to perform any of its obligations when due or as required under any agreement pursuant to which there is any outstanding Debt (other than the Obligations or any Debt described in subclause (i)(b) of Section 6.1.1 and in Section 6.1.2) and any such failure continues for more than any applicable period of grace, or (ii) any Debt of the Borrower or any Subsidiary (other than the Obligations or any Debt described in subclause (i)(b) of Section 6.1.1 and in Section 6.1.2) is accelerated, becomes subject to mandatory prepayment or redemption or, prior to its stated maturity, otherwise becomes due or is placed on demand.

6.1.4 *Misrepresentation*. Any representation or warranty made by the Borrower or any Subsidiary in any Financing Document or in any document delivered thereunder is found to have been incorrect or misleading in any material respect when made or deemed made (other than in respect of representations and warranties that were already conditioned as to materiality, in which case, any such representation and warranty is found to have been incorrect or misleading in any respect when made or deemed made).

6.1.5 *Expropriation*. Any Authority (i) condemns, nationalizes, confiscates or otherwise expropriates, intervenes, or assumes control of all or any substantial part of the Property of the Borrower or of any Subsidiary or of its Share Capital or commences a proceeding in furtherance of any of the foregoing, or (ii) takes any action that would dissolve the Borrower or any Subsidiary, prevent the Borrower or any Subsidiary from carrying on all or a substantial part of its business or limit the Borrower's ability to fulfill its obligations hereunder or under any other Financing Documents.

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

6.1.6 *Insolvency Events.* Any Insolvency Event occurs.

6.1.7 *Attachment; Judgments*. (i) An attachment or analogous process is levied or enforced against any Property of the Borrower or any Subsidiary, or (ii) a final judgment, order or arbitral award is rendered against the Borrower or any Subsidiary or any of its Property, and such attachment, process, judgment, order or arbitral award is for an amount in excess of the equivalent of one million Dollars ($1,000,000).

6.1.8 *Failure to Maintain Relevant Authorizations*. Any Relevant Authorization ceases to be in full force and effect and is not restored within thirty (30) days.

6.1.9 *Material Adverse Effect*. Any event occurs or any condition exists that, in the opinion of IDB Invest, has had, or could reasonably be expected to have, a Material Adverse Effect.

6.1.10 *Moratorium.* Any Authority of the Borrower's Country or a Guarantor's country declares any general payment delay, refusal to pay or acknowledge a payment obligation or repudiation or other action (whether or not formally announced), which in any such case, (i) relates to its debts or debts or any category of debts of borrowers in the relevant country not to be paid in accordance with their terms or (ii) prevents the availability of foreign exchange to the Borrower or any Guarantor for the purpose of performing any material obligation under this Agreement or any other Financing Document to which it is a party.

6.1.11 *Security* . IDB Invest ceases to hold for its sole and exclusive benefit a valid first priority perfected security interest in any part of the Security.

6.1.12 *Abandonment; Interruption*. The Borrower or any Guarantor ceases to carry on the Business for more than thirty (30) continuous days.

**Section 6.2** **Remedies**.

If an Event of Default occurs and is continuing, IDB Invest may, by written notice to the Borrower take any or all of the following actions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) suspend or terminate the IDB Invest Loan Commitment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) declare the IDB Invest Loan, or such part of the IDB Invest Loan as is specified in the notice (with accrued interest thereon), and all other Obligations to be immediately due and payable (in the case where all Obligations are declared due and payable pursuant to this clause (ii), the Borrower acknowledges and agrees that, for purposes of Section 2.4.3(i) (*Prepayment Fees and Costs*), the payment thereof shall be deemed a prepayment subject to the prepayment fee described in Section 2.4.3(i)); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) exercise any other remedies that may be available to IDB Invest under any Financing Document or Applicable Law.

**Section 6.3** **Bankruptcy**.

If any Insolvency Event occurs with respect to the Borrower, then (i) the IDB Invest Loan Commitment shall be automatically terminated, and (ii) all Obligations arising under this Agreement shall be automatically and immediately due and payable without any presentment, demand, protest or notice of any kind, all of which the Borrower hereby expressly waives (in the case where all Obligations become due and payable pursuant to this Section 6.3, the Borrower acknowledges and agrees that, for purposes of Section 2.4.3(i) (*Prepayment Fees and Costs*), the payment thereof shall be deemed a prepayment subject to the prepayment fee described in Section 2.4.3(i)).

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

**ARTICLE 7**

**Miscellaneous**

**Section 7.1** **Notices**.

Any notice, request, demand, approval or other communication to be issued under this Agreement or any other Financing Document shall be in writing. Subject to Section 7.10.4 (*Applicable Law and Jurisdiction*), any notice, request, demand or other communication may be delivered by hand, certified or registered airmail, internationally recognized courier service, or email. Notices shall be deemed to have been given when received; *provided*, that email delivery shall be effective only upon receipt of an acknowledgment from the intended recipient such as by the "return receipt requested" function, as available, reply email or other written acknowledgment; *provided further*, that IDB Invest may at any time require that any notice delivered by email be confirmed by any other means described herein to the party's address specified below or at such other address as such party shall have designated by notice to the other party hereto and shall be effective upon receipt.

For the Borrower:

Merqueo S.A.S.

Carrera 97A No 9A-50

Bogotá, Colombia

Attention: Miguel Mc Allister

Alternative address for communications by electronic mail:

miguel@merqueo.com

With a copy (which does not constitute notice) to:

jmgarcia@merqueo.com

For IDB Invest:

Inter-American Investment Corporation

1350 New York Avenue, N.W.

Washington D.C. 20577

United States of America

Attention: Portfolio Management Division, Investment Operations Department

Alternative address for communications by electronic mail:

monitor@iadb.org

**Section 7.2** **English Language**.

All documents to be furnished or communications to be made under this Agreement or any other Financing Document shall be in the English language and, where any original version of any such document or communication is not in English, shall, if requested by IDB Invest, be accompanied by an English translation certified by an Authorized Representative of the Borrower to be a true and correct translation of the original. IDB Invest may obtain an official or non-official English or Spanish translation of any Financing Document or any other document or communication received or prepared in any other language at the Borrower's expense. IDB Invest may deem any such translation provided by the Borrower or otherwise obtained by IDB Invest to be the governing version.

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

**Section 7.3** **Indemnity; Waiver of Consequential Damages**.

7.3.1 The Borrower shall indemnify and hold harmless IDB Invest and its officers, directors, agents, employees, representatives, attorneys, Affiliates, successors and assigns (collectively, the "**Indemnified Persons**") from and against any and all claims, actions, investigations, proceedings, suits, judgments, demands, damages (including foreseeable and unforeseeable compensatory damages and punitive claims), losses, liabilities (including liabilities for penalties), costs and expenses of any nature or kind whatsoever, whether actual or prospective, and regardless of whether any Indemnified Person is a party thereto, including all court costs and reasonable fees and disbursements of counsel on a full indemnity basis, arising out of or in connection with: (i) the execution, delivery or enforcement of, or the performance of any transaction contemplated under, this Agreement or any other Financing Document; (ii) the IDB Invest Loan or the use of Loan proceeds; (iii) any Transaction Taxes or Other Taxes arising in connection with payments made under any Financing Document and any liability (including penalties, additions to tax, interest and expenses) arising therefrom or with respect thereto; (iv) any misrepresentation or omission with respect to the information provided to IDB Invest in connection with the IDB Invest Loan; or (v) any actual or prospective Action relating to any of the foregoing, whether based on contract, tort or any other theory and regardless of whether any Indemnified Person is a party thereto (all of the foregoing, collectively, the "**Indemnified Liabilities**"); *provided*, that, the Borrower shall have no obligation hereunder to any Indemnified Person with respect to Indemnified Liabilities arising from the gross negligence or willful misconduct of any such Indemnified Person as determined by a non-appealable final judgment of a court of competent jurisdiction. The rights granted under this Section 7.3 are in addition to the rights granted under any other provision of this Agreement, under any other Financing Document, Applicable Law or otherwise. All amounts due by the Borrower to any Person hereunder shall be due and payable within five (5) Business Days of demand by such Person. This Section 7.3 shall survive repayment of the Obligations.

7.3.2 To the fullest extent permitted by Applicable Law, the Borrower shall not assert, and hereby waives, and acknowledges that no other Person shall have, any claim against any Indemnified Person, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Financing Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Senior Loan or the use of the proceeds thereof. No Indemnified Person referred to in Section 7.3.1 shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed to such unintended recipients by such Indemnified Person through telecommunications, electronic or other information transmission systems in connection with this Agreement or any other Financing Documents or the transactions contemplated hereby or thereby.

**Section 7.4** **Successors and Assigns**.

7.4.1 This Agreement binds and benefits the respective successors and assignees of the parties; *provided, however*, that the Borrower shall not assign or delegate any of its rights or obligations under this Agreement or any other Financing Document without IDB Invest's prior written consent. Any assignment or delegation by the Borrower in violation of this Section 7.4.1 shall be void *ab initio*.

7.4.2 IDB Invest may, without the need of any notice to or consent from any party or any other action, assign, participate or otherwise allot to one or more Persons (other than any Person that would qualify as a Competing Business) all or any portion of its rights and obligations under this Agreement, the Notes and the other Financing Documents.

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

7.4.3 IDB Invest may not assign at any time, its rights and obligations under this Agreement or any other Financing Document to any Person that would qualify as a Competing Business; *provided*, that if an Event of Default occurs and is continuing, IDB Invest may, without the need of any notice to or consent from any party or any other action, assign its rights and obligations under this Agreement or any other Financing Document to any Person that qualifies as a Competing Business (for the avoidance of doubt, without prejudice to IDB Invest's rights under Section 7.4.2).

**Section 7.5** **Counterparts**.

This Agreement may be executed in several counterparts, each of which is an original, and all of which together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page of this Agreement by facsimile or in electronic (i.e., "pdf" or "tif") format shall be effective as delivery of a manually executed counterpart of this Agreement.

**Section 7.6** **Confidential Information**.

7.6.1 IDB Invest may disclose any documents or records of, or information relating to, the Borrower, its Subsidiaries, and their Property, business or affairs to: (i) any Person for the purpose of exercising any power, remedy, right, authority or discretion relevant to this Agreement or any other Financing Document including in connection with the defense by IDB Invest of any Action brought by any other party to a Financing Document; (ii) any Person pursuant to Applicable Law; (iii) any banking or other regulatory or examining authorities (whether governmental or otherwise) pursuant to and in accordance with whose instructions it and other banks must customarily comply; (iv) the directors, officers, employees, arrangers, co-lenders, attorneys, consultants, rating agencies, independent auditors and advisors (including any technical, financial and other advisors) of IDB Invest and BlaO, and their respective affiliates or related Persons; and (v) any Person in connection with any proposed sale, transfer, assignment, insurance, coverage or other disposition of IDB Invest's rights under this Agreement or any other Financing Document.

7.6.2 The Borrower expressly authorizes IDB Invest to request from any Person information relating to the Borrower, and the Borrower agrees to hold each such Person harmless and exempt from any and all liability under Applicable Law in connection with the request for, and disclosure of, such information by such Person.

7.6.3 The Borrower acknowledges and agrees that, notwithstanding any other agreement between the Borrower and IDB Invest, disclosure by any such Person of any documents or records of, or information relating to, the Borrower, its Property, business or affairs in the circumstances contemplated by this Section 7.6 does not violate any duty owed to the Borrower by such Person under this Agreement, any other Financing Document or any such other agreement.

**Section 7.7** **Amendment**.

Any amendment or waiver of, or any consent given under, this Agreement shall be effective only if in writing and, in the case of any amendment, signed by the Borrower and IDB Invest or their permitted successors and assigns.

**Section 7.8 Savings of Rights; Remedies; No Waiver**.

7.8.1 The rights and remedies of IDB Invest in relation to any misrepresentation or breach of warranty by the Borrower shall not be prejudiced by any investigation by or on behalf of IDB Invest into the Borrower's affairs, by the execution or the performance of this Agreement or by any other act or thing that may be done by or on behalf of IDB Invest in connection with this Agreement and that might, apart from this Section 7.8, prejudice such rights or remedies.

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

7.8.2 No course of dealing or waiver by IDB Invest in connection with any condition of Disbursement under this Agreement shall impair any right, power or remedy of IDB Invest with respect to any other condition of Disbursement, or be construed to be a waiver thereof.

7.8.3 No course of dealing and no failure or delay by IDB Invest in exercising, in whole or in part, any power, remedy, discretion, authority or other right under this Agreement or any other Financing Document shall waive or impair, or be construed to be a waiver of or an acquiescence in, such or any other power, remedy, discretion, authority or right under this Agreement, or in any manner preclude its additional or future exercise, nor shall the action of IDB Invest with respect to any default, or any acquiescence by it therein, affect or impair any right, power or remedy of IDB Invest with respect to any other default. The rights and remedies provided in this Agreement are cumulative and not exclusive of any remedies provided by Applicable Law.

**Section 7.9 Severability**. Any provision hereof that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof and without affecting the validity or enforceability of such provision in any other jurisdiction. Where terms of any Applicable Law resulting in such prohibition or unenforceability may be waived contractually, they are hereby waived by the parties hereto to the full extent permitted by Applicable Law so that this Agreement may be deemed valid, binding and enforceable in its entirety in accordance with its terms.

**Section 7.10 Applicable Law and Jurisdiction**.

7.10.1 This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York of the United States of America without regard to any conflict of laws principles thereof that would result in the general application of the law of any other jurisdiction.

7.10.2 The Borrower hereby irrevocably and unconditionally submits, for itself and its Property, to the non-exclusive jurisdiction of the courts of the State of New York sitting in the Borough of Manhattan and of the United States of America District Court for the Southern District of New York, and any appellate court from any thereof, in any Action arising out of or relating to this Agreement or any other Financing Document (other than the Notes and any Security Document) to which the Borrower is a party. Final judgment against the Borrower in any such Action shall be conclusive and may be enforced in any other jurisdiction including the Borrower's Country by suit on the judgment, a certified or exemplified copy of which shall be conclusive evidence of the judgment, or in any other manner provided by Applicable Law.

7.10.3 Nothing in this Agreement shall affect IDB Invest's right to commence legal proceedings or otherwise sue the Borrower in the Borrower's Country, in any other appropriate jurisdiction or concurrently in more than one jurisdiction or to serve process, pleadings and other legal papers upon the Borrower in any manner authorized by the laws of any such jurisdiction.

7.10.4 The Borrower agrees irrevocably to designate, appoint and empower Registered Agents Inc., with offices at 90 State Street, Suite 700, Office 40, Albany, New York, NY 12207, or such other Person located in the State of New York that IDB Invest approves is acceptable to it, as the Borrower's authorized agent (the "**Process Agent**") to receive on its behalf service of legal process in any Action that IDB Invest may bring in respect of this Agreement or any other Financing Document to which the Borrower is a party in any court specified in Section 7.10.2 above.

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

7.10.5 The Borrower shall, for so long as this Agreement is in effect, maintain a duly appointed and authorized agent in the State of New York acceptable to IDB Invest to receive for and on its behalf service of summons, complaint or other legal process in any Action that IDB Invest may bring in the State of New York in respect of this Agreement or any other Financing Document to which the Borrower is a party and shall keep IDB Invest advised of the identity and location of such agent.

7.10.6 The Borrower further irrevocably consents that, if for any reason the Borrower has no authorized agent for service of process in the State of New York, then service of process may be made out of the courts referred to in Section 7.10.2 by mailing copies thereof by registered United States of America mail to the Borrower at its address specified in Section 7.1 (*Notices*). IDB Invest shall also send the Borrower by email a copy of any such process.

7.10.7 Service of process in the manner provided in this Section 7.10 in any Action shall be deemed personal service, accepted by the Borrower as such, and shall be valid and binding upon the Borrower for all the purposes of any such Action.

7.10.8 The Borrower irrevocably waives, to the fullest extent permitted by Applicable Law: (i) any objection that it may now or hereafter have to the laying of venue of any Action brought in any court referred to in this Section 7.10; (ii) any claim that any such Action brought in any such court has been brought in an inconvenient forum; and (iii) its right of removal of any matter commenced by IDB Invest in the courts of the State of New York to any court of the United States of America.

7.10.9 To the extent that the Borrower may, in any Action brought in any of the courts referred to in Section 7.10.2, a court of the Borrower's Country or elsewhere arising out of or in connection with this Agreement, the Notes or any other Financing Document to which it is a party, be entitled to the benefit of any provision of law requiring IDB Invest in such Action to post security for the costs of the Borrower or to post a bond or to take similar action, the Borrower hereby irrevocably waives such benefit to the fullest extent now or hereafter permitted under the Applicable Law of the jurisdiction in which such court is located.

7.10.10 To the extent that the Borrower may be entitled in any jurisdiction to claim immunity for itself or its Property from any suit, execution, attachment (whether provisional or final, in aid of execution, before judgment or otherwise) or other legal process or to the extent that in any jurisdiction that immunity (whether or not claimed) may be attributed to it or its Property, the Borrower irrevocably agrees not to claim and irrevocably waives such immunity to the fullest extent permitted now or in the future by the laws of such jurisdiction.

7.10.11 **The Borrower hereby acknowledges that IDB Invest shall be entitled under Applicable Law, including the International Organizations Immunities Act of 1945 (22 U.S.C. §288), to immunity from a trial by jury in any proceeding arising out of or relating to this Agreement or any other Financing Document to which the Borrower and IDB Invest are parties or the transactions contemplated hereby or thereby, brought against IDB Invest in any court of the United States of America. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, THE BORROWER HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY AND ALL RIGHTS TO DEMAND A TRIAL BY JURY IN ANY ACTION, SUIT OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER FINANCING DOCUMENT TO WHICH IT AND IDB INVEST ARE PARTIES OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, AND FOR ANY COUNTERCLAIM THEREON, BROUGHT BY OR AGAINST IDB INVEST IN ANY FORUM IN WHICH IDB INVEST OR IDB IS NOT ENTITLED TO IMMUNITY FROM TRIAL BY JURY. The Borrower agrees that the waivers set forth above shall have the fullest extent permitted under the Foreign Sovereign Immunities Act of 1976 of the United States of America (28 U.S.C. §§1602-1611) and are intended to be irrevocable for purposes of such Act.**

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

7.10.12 The parties have participated jointly in the negotiation and drafting of this Agreement and the other Financing Documents. The Borrower expressly acknowledges that it has had the opportunity to retain and consult with counsel of its choice admitted under the laws of the State of New York and that it has elected not to retain such counsel in connection with the negotiation and drafting of this Agreement and each other Financing Document governed by New York law. If an ambiguity or question of intent or interpretation arises, this Agreement and the other Financing Documents shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Agreement or any other Financing Document, the relative bargaining power of the parties or the Borrower's failure to retain counsel admitted under the laws of the State of New York.

**Section 7.11 Set-Off**.

In addition to any rights and remedies of IDB Invest provided by Applicable Law, IDB Invest shall have the right upon any Obligation becoming due and payable by the Borrower (whether at stated maturity, by acceleration or otherwise) to set-off, appropriate and apply against any Obligation any deposits in any currency, and any other credits, indebtedness or claims in any currency, at any time held or owing by IDB Invest to or for the credit of the Borrower.

**Section 7.12** **Entire Agreement**.

This Agreement and the other Financing Documents represent the final and complete agreement of the parties hereto with respect to the IDB Invest Loan, and all prior negotiations, representations, understandings, writings and statements of any nature with respect thereto are hereby superseded in their entirety by the terms of this Agreement and the other Financing Documents.

**Section 7.13 No Third-Party Beneficiary**.

Except as otherwise expressly provided in this Agreement, nothing contained in this Agreement shall be construed to create any right in, duty to, standard of care with respect to, or any liability to any Person who is not a party to this Agreement.

**Section 7.14 Survival**.

All representations and warranties made in this Agreement, in any other Financing Document and in any document, certificate or statement delivered pursuant hereto or in connection herewith and Section 2.6 (*Currency and Place of Payment*), Section 2.9 (*Taxes*), Section 2.12 (*Payment of Fees, Costs and Expenses*), Section 7.3 (Indemnity; Consequential Damages), and Section 7.10 (Applicable Law and Jurisdiction), together with any related provisions in Article 1 (Definitions; Interpretation) and definitions in <u>Annex 1</u> (*Definitions*), shall survive and remain in full force and effect regardless of the consummation of the transactions contemplated hereby, the repayment in full or expiration or termination of the IDB Invest Loan or the termination of this Agreement or any other Financing Document or any provision hereof or thereof.

 

**Section 7.15 Term of Agreement**.

 

This Agreement shall continue in force until the date on which IDB Invest is satisfied that (i) all amounts outstanding under the Financing Documents have been indefeasibly paid and discharged in full and (ii) IDB Invest is under no obligation to make any further Disbursement under this Agreement or any other Financing Document.

(**Signature pages follow**)

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

**IN WITNESS WHEREOF,** the parties, acting through their duly authorized Representatives, have caused this Agreement to be signed in their respective names, on the date first above written.

**MERQUEO S.A.S., As Borrower**

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| | |
|:---|:---|
| By: | /s/ Miguel Mc Allister Reyes |
| Name: | Miguel Mc Allister Reyes |
| Title: | CEO |

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IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

**Inter-American Investment Corporation**

**as lender of the IDB Invest Loan**

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| | |
|:---|:---|
| By: | /s/ Aitor Ezcurra |
| Name: | Aitor Ezcurra |
| Title: | Division Chief, Corporates |

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IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

**ANNEX 1**

**DEFINITIONS**

**General Definitions**.

"**Acceptable Auditor**" means any internationally recognized independent public accountants acceptable to IDB Invest.

"**Accounting Principles**" means International Financial Reporting Standards (formerly International Accounting Standards) (IFRS) promulgated by the International Accounting Standards Board (IASB), together with its pronouncements thereon from time to time, applied on a consistent basis.

"**Action**" means any action, claim, suit, other legal proceeding, arbitral proceeding, administrative proceeding, investigation or other claim.

"**Additional Interest**" has the meaning given to that term in Section 2.14 (*Additional Interest*).

"**Additional Interest Calculation Period**" means, in respect of the calculation of the Additional Interest, either (i) the six (6)-month period from January 1 through June 30 of the relevant Financial Year, or (ii) the relevant Financial Year, as the context may require.

"**Affiliate**" means, with respect to any Person, any other Person directly or indirectly Controlling, Controlled by or under common Control with such Person.

"**Agreement**" has the meaning provided in the preamble hereto.

"**Amendment to Merqueo Brazil's Organizational Documents**" means an amendment to the articles of association of Merqueo Brazil, duly executed by the Borrower and Merqueo International as shareholders of Merqueo Brazil, in which a provision will be included stating the existence of the Security over the shares of Merqueo Brazil pursuant to the terms and conditions of the relevant Security Document.

"**AML/CFT**" means anti-money laundering and combating the financing of terrorism.

"**Applicable Law**" means any applicable statute, code, rule, regulation, treaty having the force of law, judgment, common or customary law or similar governmental restriction or directive by any Authority, in each case, as amended, re-enacted or replaced from time to time.

"**Applicable Spread**" means nine percent (9.0%) per annum; *provided*, that beginning with the 2023 Financial Year, such rate shall be increased by one and one half percent (1.5%) for each Financial Year in which Consolidated EBITDA is not positive, with such increase effective as of the commencement of the first Interest Period beginning after the conclusion of each such Financial Year; *provided further*, that in no event shall such rate exceed twelve and one half percent (12.5%) per annum.

"**Applicable Term SOFR**" means Term SOFR published by the Term SOFR Administrator on the relevant

Interest Rate Determination Date and corresponding to the prevailing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) one-month Term SOFR, if the period from the relevant Interest Payment Date to the next Interest Payment Date is between one (1) and
sixty (60) days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) three-month Term SOFR, if the period from the relevant Interest Payment Date to the next Interest Payment
Date is between sixty-one (61) and one hundred thirty-five (135) days; or

Annex 1-1

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) six-month Term SOFR, if the period from the relevant Interest Payment Date to the next Interest Payment Date is more than one hundred
and thirty-five (135) days;

*provided* that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) when determining Applicable Term SOFR for the last Interest Period of the IDB Invest Loan, the reference
period for Applicable Term SOFR shall be the same as the reference period for the preceding Interest Period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if as of 5:00 p.m. (New York City time) on any Interest Rate Determination Date, Term SOFR for the relevant
tenor has not been published by the Term SOFR Administrator and a Benchmark Replacement Date with respect to Applicable Term SOFR has
not occurred, then Applicable Term SOFR will be the Term SOFR for such tenor as published by the Term SOFR Administrator on the first
preceding Business Day for which such Term SOFR was so published, so long as such first preceding Business Day is not more than three
(3) Business Days prior to such Interest Rate Determination Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if Applicable Term SOFR determined as provided above is in any event ever less than the Floor, then Applicable Term SOFR shall be
deemed to be the Floor.

"**Auditor**" means Ernst & Young or any replacement Acceptable Auditor appointed by the Borrower as its auditor from time to time in accordance with this Agreement.

"**Authority**" means any supranational, national, regional or local government or political subdivision thereof, or any governmental, administrative, executive, legislative, arbitral, regulatory, fiscal or judicial body, department, commission, authority, tribunal or agency, or any superintendency, monetary authority or central bank, including the supervisory authority for banking and other financial institutions, and any Person, whether or not government-owned and howsoever constituted or called, that exercises the functions of any such entity or claims to have jurisdiction over such matters.

"**Authorization**" means any consent, license or approval (howsoever evidenced), registration, filing, notarization, certificate or exemption from, by or with any Authority, and all corporate, Shareholders', creditors' and any other third-party approvals or consents.

"**Authorized Representative**" means, as to any Person, any individual who is duly authorized by such Person to act for such Person, or with respect to financial matters, the chief financial officer or treasurer of such Person, and in the case of the Borrower or any Guarantor, in addition to the foregoing, an officer duly appointed to act on the Borrower or such Guarantor's behalf under corporate documents duly registered with the competent Authority in the Borrower's Country or other relevant jurisdiction and any Person whose name and specimen signature appear on the Certificate of Incumbency and Authority most recently delivered by the Borrower to IDB Invest (including, for the avoidance of doubt, in the case of Merqueo Mexico, an attorney-in-fact duly appointed and authorized).

"**Benchmark**" means, initially, Applicable Term SOFR; *provided,* that if a Benchmark Transition Event has occurred with respect to Applicable Term SOFR or the then-current Benchmark, then "Benchmark" means the applicable Benchmark Replacement to the extent that such Benchmark Replacement has replaced such prior benchmark rate pursuant to Section 2.16 (*Benchmark Replacement Setting*).

"**Benchmark Replacement**" means the sum of: (i) the alternate benchmark rate that has been selected by IDB Invest giving due consideration to (a) any selection or recommendation of a replacement rate or the mechanism for determining such a rate by the Relevant Governmental Body at such time or (b) any evolving or then-prevailing market convention for determining a rate of interest for Dollar-denominated syndicated or bilateral credit facilities; and (ii) the Benchmark Replacement Adjustment; *provided* that, if at any time the Benchmark Replacement as so determined would be less than zero, the Benchmark Replacement will be deemed to be zero for the purposes of this Agreement and any other Financing Document.

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IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

"**Benchmark Replacement Adjustment**" means, for each applicable Interest Period, the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by IDB Invest giving due consideration to (i) any selection or recommendation of a replacement rate or the mechanism for determining such a rate by the Relevant Governmental Body at such time or (ii) any evolving or then-prevailing market convention for determining a rate of interest for Dollar-denominated syndicated or bilateral credit facilities.

**"Benchmark Replacement Conforming Changes**" means, with respect to any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of Interest Period, the timing and frequency of determining rates and making payments of interest and other administrative matters) that IDB Invest decides may be appropriate to reflect the adoption and implementation of such Benchmark Replacement and to permit the administration thereof by IDB Invest in a manner substantially consistent with market practice (or, if IDB Invest decides that adoption of any portion of such market practice is not administratively feasible or if IDB Invest determines that no market practice for the administration of the Benchmark Replacement exists, in such other manner of administration as IDB Invest decides is reasonably necessary in connection with the administration of the IDB Invest Loan and this Agreement).

"**Benchmark Replacement Date**" means the date on which a Benchmark Replacement becomes effective pursuant to Section 2.16 (*Benchmark Replacement Setting*).

"**Benchmark Transition Event**" means the occurrence of one or more of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a public statement or publication of information by the regulatory supervisor for the administrator of
the Benchmark announcing that the Benchmark is no longer representative;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the administrator of the Benchmark permanently or indefinitely ceases to provide the Benchmark; *provided,* that, at the time of such cessation, there is no successor administrator that will continue to provide the Benchmark; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the determination by IDB Invest that, in anticipation of the withdrawal of regulator support for the Benchmark,
the use of one or more alternative benchmarks has become conventional in the market for Dollar-denominated floating rate syndicated or
bilateral credit facilities.

"**BlaO**" means Blue like an Orange Sustainable Capital - Latin America Holdings II S.A.R.L. a Luxembourg *société à responsabilité limitée*, as lender of the BlaO Loan.

"**BlaO Guarantee Agreement**" means an agreement entered into, or to be entered into, between the Guarantors and BlaO relating to the Guarantors' primary, unconditional and irrevocable guarantee in favor of BlaO of all of the Borrower's payment obligations to BlaO under the Financing Documents.

"**BlaO Loan**" means a loan in an aggregate amount of up to the BlaO Loan Commitment to be funded by BlaO or, as the context may require, the outstanding principal amount thereof.

Annex 1-3

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

"**BlaO Loan Agreement**" means the agreement to be entered into between the Borrower and BlaO on or about the date hereof providing for the BlaO Loan Commitment.

"**BlaO Loan Commitment**" means the eighteen million Dollar ($18,000,000) loan commitment to be made by BlaO to the Borrower pursuant to the BlaO Loan Agreement.

"**Board of Directors**" means, as to any Person, the board of directors of such Person or such other body performing similar functions with respect to such Person.

"**Borrower**" has the meaning provided in the preamble hereto.

"**Borrower's Country**" means the Republic of Colombia.

"**Brazil**" means the Federative of Republic of Brazil.

"**Business**" means the business of maintaining one or more websites for the online ordering and physical delivery of grocery goods in Latin America.

"**Business Day**" means (i) any day that is not a Saturday, Sunday or other day that is a legal holiday under the laws of the State of New York or the laws of the Republic of Colombia, or is a day on which banking institutions in New York or Colombia are authorized or required by Applicable Law to close, and (ii) solely for the purpose of determining Applicable Term SOFR, a U.S. Government Securities Business Day.

"**Certificate of Incumbency and Authority**" means a certificate provided to IDB Invest by the Borrower in the form of <u>Exhibit 5</u> (*Form of Borrower's Certificate of Incumbency and Authority*).

"**Change in Law**" means the occurrence, after the Effective Date (including any circumstance that is retroactive to a date prior to the Effective Date), of any of the following: (i) the adoption or taking effect of any law, rule, regulation or treaty, (ii) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any Authority or (iii) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any Authority; *provided*, that notwithstanding anything herein to the contrary, (a) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith and (b) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a "Change in Law", regardless of the date enacted, adopted or issued.

"**Change of Control**" means the occurrence of any of the following: (i) any Person holds, of record or beneficially, and possess the ability to vote (whether directly or indirectly) more than fifty percent (50%) of each class of outstanding Share Capital entitled to voting rights with respect to the Borrower free and clear of all Liens; (ii) any Person acquires Control of the Borrower; or (iii) the Borrower enters into any management, partnership, profit-sharing, joint-venture or royalty agreement or other similar agreement whereby its business or operations or that of its Subsidiaries are managed by, or a significant part of its or their net income or profits are shared with, any Person.

"**Colombian Pesos**" means the lawful currency of the Borrower's Country.

"**Commitment Fee**" has the meaning given to that term in Section 2.12.1(i) (*Fees*).

Annex 1-4

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

"**Commitment Termination Date**" means the earliest of: (i) the first anniversary of the Effective Date; (ii) the date the IDB Invest Loan Commitment is cancelled in full in accordance with the terms of Section 2.10 (*Suspension of Disbursements; Cancellation of IDB Invest Loan Commitment*); (iii) the date of any prepayment of any part of the IDB Invest Loan; and (iv) any other date on which the IDB Invest Loan Commitment and the Borrower's right to request further Disbursements are terminated in accordance with the terms of this Agreement; *provided*, that in the case of the Interest Reserve Amount only, if the Commitment Termination Date occurs pursuant to clauses (i) through (iv) above on any date on which any principal amount of the IDB Invest Loan remains outstanding and is not due and owing, then the Commitment Termination Date for the Interest Reserve Amount shall instead be the date falling three (3) months after the expiration of the Interest Reserve Period.

"**Competing Business**" means any entity satisfying both of the following conditions: (a) one or any of its operating businesses is an online grocery retailer or grocery service provider; and (b) its business operations are primarily located in Latin America (including, for the avoidance of doubt, Mexico).

"**Control**" means, with respect to any Person, any other Person having the power, directly or indirectly,

(i) to vote more than fifty percent (50%) of the securities having ordinary voting power including for the election of directors of such Person; (ii) to appoint the majority of the administrators of such Person; (iii) to appoint a majority of the members of such Person's Board of Directors; or (iv) to establish, direct or cause the direction of the management or policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; ("**Controlling**" and "**Controlled**" have corresponding meanings).

"**Corporate Governance Action Plan**" means the corporate governance action plan(s) developed by the Borrower, a copy of which is attached as <u>Schedule 8</u> (*Corporate Governance Action Plan*).

"**Costs**" means any costs, expenses or losses incurred by IDB Invest in connection with the IDB Invest Loan, with any determinations thereof being made by IDB Invest, including: (i) any breakage of funds, termination costs and other unwinding costs, if positive, incurred by IDB Invest, taking into account the principal repayment schedule, the first scheduled repayment date for the IDB Invest Loan and the applicable Loan Final Maturity Date for the IDB Invest Loan; (ii) interest paid and/or payable to cover any unpaid amount; (iii) broken funding and redeployment costs; (iv) any foreign exchange loss and/or hedge liquidation costs; and (v) any loss, premium, penalty and expense that may be incurred in liquidating or employing deposits of, and/or borrowings from, third parties in order to fund and/or maintain all or any part of the IDB Invest Loan.

"**Debt**" means, with respect to any Person, the aggregate (as of the date of calculation) of all such Person's obligations (whether actual or contingent) to pay or repay money, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all Financial Debt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any credit to such Person from a supplier of goods or services provided by deferral of the purchase price
or under any installment purchase or other similar arrangement in respect of goods or services (except trade accounts in the ordinary
course of business payable within ninety (90) days);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) all liabilities of such Person (actual or contingent) under any conditional sale or a transfer with recourse
or obligation to repurchase, including by way of discount or factoring of book debts or receivables;

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IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) all obligations of others secured by (or for which the holder of such obligation has an existing right,
contingent or otherwise, to be secured by) any Lien on Property owned or acquired by such Person, whether or not the obligation secured
thereby has been assumed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the amount of any obligation in respect of any guarantee or indemnity for any of the foregoing items (other than Financial Debt) incurred
by any other Person.

"**Default**" means any event or condition that constitutes an Event of Default or any event or condition that, but for notice, lapse of time or the making of a determination, or any combination thereof, would constitute an Event of Default.

"**Derivative Transaction**" means any swap agreement, cap agreement, collar agreement, futures contract, forward contract, option contract, or similar arrangement with respect to interest rates, currencies or commodity prices.

"**Disbursement**" means any disbursement of the IDB Invest Loan.

"**Disbursement Account**" means the following bank account:

Intermediary Bank Name (located in the U.S.):

Intermediary Bank Address:

Intermediary Bank ABA Code:

Beneficiary Bank Name:

Beneficiary Bank Address:

Beneficiary Bank SWIFT:

Beneficiary Name:

Beneficiary Account Number or IBAN:

"**Disbursement Date**" means the date on which the proceeds of a Disbursement are released by IDB Invest to the Borrower, which shall be a Business Day prior to the Commitment Termination Date on which IDB Invest is open for business.

"**Disbursement Request**" means a request for a Disbursement delivered by the Borrower to IDB Invest substantially in the form of <u>Exhibit 1</u> (*Form of Disbursement Request*).

"**Dollars**" and the sign "**$**" mean the lawful currency of the United States of America.

"**Effective Date**" has the meaning provided in the preamble hereto.

"**Equity Rights**" means, in respect of a Person (other than an individual) any subscriptions, subscription bonuses, options, warrants, commitments, preemptive rights or agreements of any kind (including any shareholders' or voting trust agreements) for the issuance, subscription, sale, registration or voting of, or any securities convertible into, any Share Capital of such Person.

"**Event of Default**" means any event specified in Section 6.1 (*Events of Default*).

"**Fee Letter**" means each fee letter agreement to be entered into between each Senior Lender and the Borrower setting forth the fees payable in respect of the transactions contemplated herein and the other Financing Documents.

Annex 1-6

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

"**Financial Covenants**" has the meaning provided in Section 5.1.13 (*Financial Covenants*).

"**Financial Debt**" means all of the Borrower's and its Subsidiaries' obligations in respect of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) borrowed money, including the IDB Invest Loan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the outstanding principal amount of any bonds, notes, loan stock, commercial paper, acceptance credits,
debentures and bills or promissory notes drawn, accepted, endorsed or issued by the Borrower or any Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) non-contingent obligations of the Borrower or any Subsidiary to reimburse any other Person in respect
of amounts paid under a letter of credit, bank guarantee or similar instrument (excluding any such letter of credit or similar instrument
issued for the Borrower's or any Subsidiary's account in respect of trade accounts incurred and payable in the ordinary course
of business to trade creditors within ninety (90) days of the date that they are incurred and which are not overdue);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the amount of any obligation in respect of any capitalized leases to the extent such obligation is required
to be capitalized and accounted for as a financial obligation of capital lease on a balance sheet of such Person under the Accounting
Principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) amounts raised under any other transaction having the commercial effect of a borrowing and that would
be classified as a borrowing (and not as an off-balance sheet financing) under the Accounting Principles including under leases or similar
arrangements entered into primarily as a means of financing the asset leased;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the amount of the Borrower's and its Subsidiaries' obligations under any Derivative Transactions
entered into in connection with the protection against or benefit from fluctuation in any rate or price (but only the net amount owing
by the Borrower or its Subsidiaries after marking the relevant derivative transactions to market);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) any premium payable on a redemption or replacement of any of the foregoing items; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) the amount of any obligation in respect of any guarantee or indemnity for any of the foregoing items incurred by any other Person.

"**Financial Quarter**" means each period commencing on the day after a Financial Quarter Date and ending on the immediately succeeding Financial Quarter Date.

"**Financial Quarter Date**" means each March 31, June 30, September 30 and December 31.

"**Financial Year**" means the accounting year of the Borrower and its Subsidiaries commencing each year on January 1 and ending on the following December 31 or such other period as the Borrower, with IDB Invest's consent, designates as its accounting year.

"**Financing Documents**" means, collectively:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the BlaO Loan Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) each Note;

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IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Security Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Guarantee Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the BlaO Guarantee Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) the fee letters between the Borrower and each Senior Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) all documents relating to the IDB Invest Loan or the BlaO Loan that are entered into after the Effective
Date and designated as a Financing Document by IDB Invest and the Borrower or BlaO and the Borrower; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) all other documents and certificates required to be delivered from time to time hereunder and thereunder.

"**First Repayment Date**" means the first Interest Payment Date immediately following the date falling thirty (30) months after the first Disbursement Date.

"**Floor**" means zero percent (0%) per annum.

"**Founders**" means, together, Miguel Mc Allister, José Guillermo Calderón, Pablo González, and Sebastián Noguera.

"**Guarantee Agreement**" means an agreement entered into, or to be entered into, between the Guarantors and IDB Invest relating to the Guarantors' primary, unconditional and irrevocable guarantee in favor of IDB Invest of all of the Borrower's payment obligations to IDB Invest under the Financing Documents.

"**Guarantors**" means Merqueo Brazil, Merqueo International, and Merqueo Mexico.

"**IDB**" means the Inter-American Development Bank, an international organization established by the Agreement Establishing the Inter-American Development Bank among its member countries.

"**IDB Group**" means IDB Invest, IDB and the Multilateral Investment Fund.

"**IDB Group List of Sanctioned Firms and Individuals**" means the list of firms and individuals listed in, and accessible at: <u>http://www.iadb.org/en/topics/transparency/integrity-at-the-idb-group/sanctioned-firms-and-individuals,1293.html</u> or any successor website or location.

"**IDB Invest**" has the meaning provided in the preamble hereto.

"**IDB Invest Loan**" has the meaning given to such term in in Section 2.1.1 (*The IDB Invest Loan*).

"**IDB Invest Loan Commitment**" has the meaning given to such term in in Section 2.1.1 (*The IDB Invest Loan*).

"**IDB Invest Members**" means the member countries of IDB Invest listed in <u>Schedule 1</u> (*Member Countries of IDB Invest*).

"**IDB Invest Put Option Agreement**" means the Put Option Agreement dated as of June 4, 2021 among IDB Invest, IDB Invest acting as agent for IDB as administrator of the Clean technology Fund II, the Borrower and the Guarantors.

Annex 1-8

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

"**Increased Costs**" means the amount certified in an Increased Costs Certificate to be the net incremental costs of, or reduction in return to, IDB Invest in connection with making or maintaining the IDB Invest Loan that results from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any Change in Law; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any compliance with any request from, or requirement of, any central bank or other monetary or other Authority; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if the Interest Rate is calculated in accordance with Section 2.15 (*Market Disruption*), Increased
Costs shall also include any difference between the Market Disruption Base Rate and the actual cost to IDB Invest of making, funding or
maintaining the IDB Invest Loan for the relevant Interest Period;

that in any such case, subsequent to the Effective Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) imposes, modifies or makes applicable any reserve, special deposit, compulsory loan, insurance charge
or similar requirements against Property of, or deposits with or for the account of, or credit extended by IDB Invest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) imposes a cost on IDB Invest as a result of its having made or committed to make the IDB Invest Loan or
reduces the rate of return on the overall capital of IDB Invest that it would have been able to achieve had it not made or committed to
make the IDB Invest Loan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) subjects IDB Invest to any Tax in respect of the IDB Invest Loan (other than a change in taxation of the
overall net income of IDB Invest imposed by a jurisdiction to which IDB Invest is subject); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) imposes on IDB Invest any other cost or condition regarding the making or maintaining of the IDB Invest Loan.

"**Increased Costs Certificate**" means a certificate furnished by IDB Invest to the Borrower certifying:

(a) the circumstances giving rise to the Increased Costs; (b) that the costs of IDB Invest have increased or its rate of return has been reduced; (c) the amount of Increased Costs; and (d) that IDB Invest has exercised reasonable efforts to minimize or eliminate the relevant increase or reduction; *provided*, that IDB Invest shall not be obliged to disclose any information that any Lender considers to be confidential in providing such certificate.

"**Indemnified Liabilities**" has the meaning provided in Section 7.3 (*Indemnity; Waiver of Consequential Damages*).

"**Indemnified Persons**" has the meaning provided in Section 7.3 (*Indemnity; Waiver of Consequential Damages*).

"**Insolvency Event**" means any of the following: (i) a court declares the Borrower or any Subsidiary bankrupt or insolvent; (ii) a petition seeking reorganization, intervention, surveillance, moratorium, liquidation, arrangement, adjustment, *concurso* or composition of or in respect of the Borrower or any Subsidiary under any Applicable Law is properly filed; (iii) a court appoints a receiver, liquidator, trustee, sequestrator, assignee, *síndico*, *interventor* (or similar official) of the Borrower or any Subsidiary or of any substantial part of its Property or Debt or orders the winding up, dissolution, re-organization or liquidation of its affairs; (iv) the Borrower or any Subsidiary itself takes any action to institute proceedings to be adjudicated bankrupt or insolvent, or consents to the commencement of bankruptcy or insolvency proceedings against it, or files a petition or answer or consent seeking reorganization or similar relief under any Applicable Law, or consents to the filing of any such petition or to the appointment of a receiver, liquidator, trustee, sequestrator, assignee, *síndico*, *interventor* (or similar official) of the Borrower or any Subsidiary or of any substantial part of its respective Property or Debt or fails to timely and appropriately contest any proceeding or petition described in (i), (ii) or (iii); (v) the Borrower or any Subsidiary makes a general assignment for the benefit of creditors; (vi) the Borrower or any Subsidiary admits in writing its inability or otherwise becomes unable to pay its debts generally as they become due; (vii) the Borrower or any Subsidiary is or becomes subject to judicial or extra-judicial reorganization or to any temporary administration or intervention by any Authority; or (viii) any other event occurs that under any Applicable Law would have an effect similar to any of those events listed above.

Annex 1-9

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

"**Intellectual Property**" means all patents, letters patent (including applications, improvements, prolongations, extensions, and rights to apply therefor), logos, labels, designs, (whether registered or unregistered), copyrights, design rights, trademarks, and service marks (whether registered or unregistered), utility models, company names, business names, trade names, processes, know-how, confidential information, trade secrets, formulas, inventions, computer software, programs, and systems (including the benefit of any licenses, permits, consents or franchises relating to any of the above, and including applications, improvement, prolongations, extensions, and rights to apply therefor), and other similar rights, and all registrations with respect to any of the foregoing, whether owned, leased or licensed, or otherwise used by the Borrower or any of its Subsidiaries, and all fees, royalties, or other rights derived therefrom, or incidental thereto, in any part of the world. Notwithstanding the foregoing, "Intellectual Property" shall not include (i) non-exclusive software licenses and (ii) non-exclusive licenses that are not material to the operation of the business of the Borrower or any of its Subsidiaries.

"**Intercreditor Agreement**" means an agreement of that name entered into, or to be entered into, between IDB Invest and BlaO.

"**Interest Payment Date**" means the 15th day of each April and October of each year.

"**Interest Period**" means each six (6)-month period beginning on an Interest Payment Date and ending on the next following Interest Payment Date, except for the first period following each Disbursement for which it shall mean the period beginning on such Disbursement Date and ending on the next following Interest Payment Date.

"**Interest Rate**" means the rate of interest payable on the outstanding principal amount of the IDB Invest Loan from time to time, determined in accordance with Section 2.13 (*IDB Invest Loan Interest*).

"**Interest Rate Determination Date**" means the second (2nd) Business Day prior to the commencement of each Interest Period; *provided*, that the Interest Rate Determination Date for the first Interest Period following each Disbursement shall be the second (2nd) Business Day prior to the relevant Disbursement Date.

"**Interest Reserve Amount**" has the meaning provided in Section 2.2.4(i)(a) (*Disbursement Procedure*).

"**Interest Reserve Balance**" has the meaning provided in Section 2.2.4(ii) (*Disbursement Procedure*).

"**Interest Reserve Disbursement**" has the meaning provided in Section 2.2.4(i)(b) (*Disbursement Procedure*).

"**Interest Reserve Period**" has the meaning provided in Section 2.2.4(i) (*Disbursement Procedure*).

Annex 1-10

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

"**Internationally Recognized Sanctions Lists**" means sanctions lists maintained by the Office of Foreign Assets Control (OFAC) of the United States Department of Treasury, the United Kingdom of Great Britain and Northern Ireland, the United Nations and the European Union.

"**Key Performance Indicators**" means the key performance indicators listed in <u>Schedule 7</u> (*Key Performance Indicators*).

"**Lien**" means any mortgage, pledge, charge, assignment, hypothecation, lien, security interest, title retention, preferential right (arising by operation of law or otherwise), trust arrangement, right of set-off, counterclaim or banker's lien, privilege or priority of any kind having the effect of security, including any designation of loss payees or beneficiaries or any similar arrangement under any insurance policy.

"**List of Excluded Activities**" means the list of activities not financed by IDB Invest set forth in <u>Schedule 2</u> (*List of Excluded Activities*).

"**Loan Final Maturity Date**" means the date that occurs on the seventh (7th) anniversary of the Effective Date or, if such date is not an Interest Payment Date, then the next preceding Interest Payment Date.

"**Mandatory Prepayment Event**" has the meaning provided in Section 2.4.2 (*Mandatory Prepayments*).

"**Market Disruption Base Rate**" means an interest rate per annum equal to (i) the cost of funds of IDB Invest, determined in accordance with Section 2.15 (*Market Disruption*) or (ii) any other rate applicable pursuant to either Section 2.15.2(i) or Section 2.15.2(ii) as determined by IDB Invest.

"**Market Disruption Event**" has the meaning provided in Section 2.15.1 (*Market Disruption*).

"**Material Adverse Effect**" means a material adverse effect on: (i) the business, Property, liabilities, operations or condition, financial or otherwise, of the Borrower and its Subsidiaries taken as a whole; (ii) the ability of the Borrower and its Subsidiaries taken as a whole to perform its obligations under any Financing Document to which it is a party; (iii) the rights or remedies of IDB Invest under the Financing Documents; or (iv) the validity or enforceability of any material provision of any Financing Document; or (v) the perfection, priority, enforceability or value of the Security.

"**Merqueo Brazil**" means Merqueo Comércio Varejista e Intermediação de Negócios Ltda., a company organized and existing under the laws of Brazil.

"**Merqueo International**" means Merqueo International S.A.S., a simplified stock corporation organized and existing under the laws of the Borrower's Country.

"**Merqueo Mexico**" means Merqueo S.A. de C.V., a company duly incorporated under the laws of Mexico, a company incorporated under the laws of Mexico.

"**Mexico**" means the United Mexican States.

"**MICI**" means the independent consultation and investigation mechanism of IDB Invest and IDB that impartially responds to environmental and social concerns of affected communities and aims to enhance outcomes.

"**Most Favored Lender Provisions**" has the meaning provided in Section 5.1.16 (*Most Favored Lender*).

"**Notes**" has the meaning provided in Section 2.17.1 (*Initial Notes*).

Annex 1-11

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

"**Obligations**" means collectively:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the unpaid amount of principal of, and interest and Additional Interest on, the IDB Invest Loan (including
default interest and ordinary interest accruing after the maturity of the IDB Invest Loan and after the filing of any petition in bankruptcy,
or the commencement or occurrence of any Insolvency Event relating to the Borrower); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all expenses, Costs, fees and other obligations and liabilities of the Borrower under this Agreement or any other Financing Document
to IDB Invest.

"**Other Taxes**" has the meaning provided in Section 2.9.1 (*Taxes*).

"**Permitted Liens**" means in respect of the Borrower and its Subsidiaries:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Liens created under or pursuant to any Security Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any Lien arising from any tax, assessment or other Lien arising by operation of law while the indebtedness
underlying that Lien is not yet due or, if due, is being contested in good faith by appropriate proceedings and for the payment of which
reserves, bonds, insurance or other security has been provided in an amount sufficient to promptly pay in full any amounts that the Borrower
or the relevant Subsidiary may be ordered to pay on final determination of any such proceedings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the naming of IDB Invest as loss payee, beneficiary, or additional insured under the Borrower's and its Subsidiaries'
insurance policies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the naming of additional insureds under the Borrower's and its Subsidiaries' insurance policies in the ordinary course
of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) mechanics', materialmens', construction and other similar Liens arising in the ordinary course
of business that either (a) are not overdue for a period of more than ninety (90) days or (b) are for amounts being contested in good
faith and by appropriate proceedings, so long as a bond or other security instrument has been posted or other adequate provision for payment
thereof has been provided in such manner and amount as required by the Accounting Principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Liens, pledges or deposits under worker's compensation, unemployment insurance or other social security legislation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) easements, rights-of-way, restrictions and other similar encumbrances incurred in the ordinary course
of business and encumbrances consisting of zoning restrictions, licenses, restrictions on the use of property or minor imperfections in
title that could not reasonably be expected to have a Material Adverse Effect; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) any Lien securing a Debt on any asset of the Borrower in existence on the date of this Agreement which
Lien and Debt are described in <u>Schedule 4</u> (*Permitted Liens*) or any Lien securing an extension, renewal or refinancing of
such Debt; *provided*, that (a) such Lien is created over the assets that secured such Debt and (b) the principal amount of Debt
secured by such Lien prior to such extension, renewal or refinancing is not increased, other than with respect to reasonable costs, fees
and expenses incidental to such extension, renewal, or refinancing.

Annex 1-12

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

"**Person**" means any individual or any company, partnership, joint venture, firm, corporation, voluntary association, trust, enterprise, unincorporated organization or other corporate body or any Authority or any other entity whether acting in an individual, fiduciary or other capacity, including that Person's successors and permitted assigns.

"**Process Agent**" has the meaning provided in Section 7.10.4 (*Applicable Law and Jurisdiction*).

"**Prohibited Practice**" means any of the following: (i) impairing or harming, or threatening to impair or harm, directly or indirectly, any party or the property of the party to influence improperly the actions of a party (a "**Coercive Practice** "); (ii) an arrangement between two or more parties designed to achieve an improper purpose, including influencing improperly the actions of another party (a "**Collusive Practice**");

(iii) offering, giving, receiving, or soliciting, directly or indirectly, anything of value to influence improperly the actions of another party (a "**Corrupt Practice**"); (iv) any action or omission, including a misrepresentation, that knowingly or recklessly misleads, or attempts to mislead, a party in order to obtain a financial or other benefit or avoid an obligation (a "**Fraudulent Practice**"); (v) (a) destroying, falsifying, altering or concealing of evidence material to an IDB Group investigation or an investigation by BlaO, or making false statements to investigators with the intent to impede an IDB Group investigation or BlaO investigation; (b) threatening, harassing or intimidating any party to prevent it from disclosing its knowledge of matters relevant to an IDB Group investigation or BlaO investigation or from pursuing the investigation; or (c) acts intended to impede the exercise of the IDB Group's or BlaO's contractual rights of audit or inspection or access to information (each an "**Obstructive Practice**"); and (vi) the use of IDB Group or BlaO's financing or resources for an improper or unauthorized purpose, committed either intentionally or through reckless disregard (a "**Misappropriation**").

"**Property**" means any right or interest in or to assets or property of any kind whatsoever, whether real, personal or mixed and whether tangible or intangible.

"**Rate Setting Period**" has the meaning provided in Section 2.15.2(ii) (*Market Disruption*).

"**Receipt Account**" has the meaning provided in Section 2.6.1 (*Currency and Place of Payment*).

"**Relevant Authorization**" means each Authorization that is or may be at any time necessary under Applicable Law: (i) for making the IDB Invest Loan and each Disbursement; (ii) material for the Borrower and each of its Subsidiaries to conduct its business as it is contemplated to be carried on; (iii) for the purposes of the IDB Invest Loan to be carried out in accordance with the Financing Documents; (iv) in connection with the execution, delivery, validity and enforceability of the Financing Documents and the performance by each party thereto of its obligations thereunder; (v) for the enforcement by IDB Invest of its rights and remedies under the Financing Documents; (vi) for the remittance to IDB Invest or its assigns in Dollars of all monies payable under or with respect to the Financing Documents; and (vii) for the IDB Invest Loan and the Borrower and its Subsidiaries to comply with Applicable Law and <u>Annex 2</u> (*Environmental and Social Provisions*).

"**Relevant Governmental Body**" means the Federal Reserve Board and/or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Federal Reserve Board and/or the Federal Reserve Bank of New York or any successor thereto.

Annex 1-13

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

"**Restricted Payment**" means (i) any dividend or distribution (whether in cash, Property or obligations) on, any other payment or deposit made on account of, any declaration of any dividend, distribution or similar payment in respect of, and the purchase, redemption, retirement or other acquisition of, any portion of the Borrower's Share Capital (other than in connection with IDB Invest's exercise of the put option under the IDB Invest Put Option Agreement) or Equity Rights in respect of the Borrower, including any dividends, distributions or other payments made or to be made by the Borrower to its Shareholders, Affiliates, or other Persons for or on account of capital reductions, repurchases or redemptions of outstanding stock, options or warrants, and investments in, and capital contributions, loans and advances to, the Borrower, and other similar payments in respect of Equity Rights; (ii) any payment, purchase, or retirement or other acquisition of any debt (whether or not subordinated), loan, account or other financial obligation owed to any Shareholder or Affiliate thereof (including any deposit or similar payment made to secure any such debt, loan, account or financial obligation); and (iii) any payment of development, management or operation fees to any Shareholder or Affiliate of the Borrower, except as set forth in the Founders' employment or services agreements.

"**Secured Property**" means all Property, and the products and proceeds thereof, from time to time subject, or purported to be subject, to the Security.

"**Security**" means the first priority Liens created, or purported to be created, over all of the shares of each Subsidiary under the Security Documents to secure all of the Obligations and the corresponding obligations owed to BlaO in respect of the BlaO Loan.

"**Security Documents**" means: (i) all agreements relating to the Security; and (ii) all other notices, consents, acknowledgements and documents necessary or advisable to perfect the security interest of the Senior Lenders in the Secured Property, as each may be amended, modified, supplemented, renewed or restated.

"**Senior Lenders**" means IDB Invest, BlaO and their successors and assigns.

"**Senior Loans**" means the IDB Invest Loan and the BlaO Loan.

"**Share Capital**" means, as to any Person (other than an individual), all shares of capital stock of any class or other ownership interests of any kind, however called, in such Person, and any and all warrants, subscription bonus, convertible debentures or debt, options or other rights to purchase, subscribe or otherwise acquire title to any of the foregoing.

"**Shareholder**" means any Person that owns Share Capital of the Borrower.

"**SOFR**" means the secured overnight financing rate published by the SOFR Administrator on the SOFR Administrator's website, currently at http://www.newyorkfed.org, or any successor source identified by the SOFR Administrator from time to time.

"**SOFR Administrator**" means the Federal Reserve Bank of New York, as administrator of SOFR (or any successor administrator thereof from time to time).

"**SPAC Transaction**" means a transaction between or among the Shareholders and Rose Hill Acquisition Corporation (NASDAQ Ticker Symbol: ROSEU), a special purpose acquisition company (a "**SPAC**"), which results in the ownership of the Borrower's Share Capital being held directly or indirectly by such SPAC and such SPAC: (i) continues to be subject to reporting requirements under the U.S. Securities Exchange Act of 1934; and (ii) continues to have its Share Capital listed and publicly traded on the NASDAQ Stock Exchange.

"**Subsidiary**" means, with respect to any Person, any entity: (i) over fifty percent (50%) of whose Share Capital is owned, directly or indirectly, by that Person; (ii) for which that Person may nominate or appoint a majority of the members of the Board of Directors; or (iii) that is otherwise Controlled by that Person.

Annex 1-14

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

"**Tax Returns**" means all returns, declarations, reports, estimates, information returns, statements and other documents of, relating to, or required to be filed with any Authority in respect of Taxes.

"**Taxes**" means all present and future taxes, charges, fees, duties, contributions, withholding obligations or other assessments of whatsoever nature levied by any Authority, together with any interest, penalties, additions to tax or other liabilities imposed thereon by any Authority.

"**Term SOFR**" means the forward-looking term rate based on SOFR administered by the Term SOFR Administrator.

"**Term SOFR Administrator**" means CME Group Benchmark Administration Limited (or any successor administrator of a forward-looking term rate based on SOFR selected by IDB Invest from time to time in its sole discretion).

"**Transaction Taxes**" has the meaning provided in Section 2.9 (*Taxes*).

"**Unauthorized Share Transaction**" means any transaction affecting or changing the Share Capital held or to be acquired by any Person in the Borrower (whether directly or indirectly, through the ownership by such Person of Share Capital in any other Person) if (i) (a) such transaction or such Person violates, or would result in the Borrower violating, the Applicable Laws of the Borrower's Country, or (b) such Person is included in the Internationally Recognized Sanctions Lists or in the IDB Group List of Sanctioned Firms and Individuals and, (ii) such Person holds or would as a result of such transaction hold in aggregate in excess of five percent (5%) of the total Share Capital of the Borrower.

"**U.S. Government Securities Business Day**" means any day except for (i) a Saturday, (ii) a Sunday or (iii) a day on which the U.S. Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government securities.

"**Warehouse Leases**" means the warehouse leases listed in <u>Schedule 5</u> (*Warehouse Leases*).

**<u>Financial Definitions</u>**

"**Adjusted EBITDA**" means, for any period of determination and with respect to operations in Colombia, Mexico and Brazil, whether conducted directly or indirectly through the Guarantors or any other Subsidiaries of the Borrower, determined on a Consolidated Basis (but excluding operations in any other jurisdictions) in accordance with the Accounting Principles, the sum (determined without duplication) of: (i) the Consolidated Operating Income for such period *plus* (ii) depreciation and amortization to the extent deducted when determining Consolidated Operating Income for such period *plus/minus* (iii) other applicable items, such as other Non-Cash Items not previously accounted for, if any, to the extent deducted/added when determining Consolidated Operating Income for such period.

"**Capital Contributions**" means, as of any Determination Date and in respect of the Determination Period ending on such Determination Date, any increase of debt and/or equity during such Determination Period of the Borrower and its Subsidiaries under the Accounting Principles on a Consolidated Basis.

"**Capitalized Research & Development**" means, as of any Determination Date and in respect of the Determination Period ending on such Determination Date, any research and development costs capitalized during such Determination Period of the Borrower and its Subsidiaries under the Accounting Principles on a Consolidated Basis.

Annex 1-15

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

"**Cash Flow from Financing Activities**" means, as of any Determination Date and in respect of the Determination Period ending on such Determination Date, the amount of cash flow from financing activities during such Determination Period of the Borrower and its Subsidiaries under the Accounting Principles on a Consolidated Basis.

"**Cash Held at the Beginning of the Period**" means, in respect of any Determination Period, the aggregate amount of cash and cash equivalents held by the Borrower and its Subsidiaries on a Consolidated Basis on the first day of the relevant Determination Period.

"**Cash Flow Available for Debt Service**" means, as of any Determination Date and in respect of the Determination Period ending on such Determination Date, the aggregate on a Consolidated Basis of the Borrower's and its Subsidiaries' (determined without duplication): (i) Net Cash Flow from Operations, *plus* (ii) Capitalized Research & Development, *plus* (iii) interest from the Right Use of Assets, *plus* (iv) interest on Debt, including any Additional Interest and fees, *plus* (v) any financial expense to the extent it has been deducted in determining Net Cash flow from Operations, *minus* (vi) Cash Flow from Financing Activities, *plus* (vii) Capital Contributions, *minus* (viii) Dividends, *minus* (ix) any other financial outflows other than Debt related amortization, interest and fees.

"**Consolidated** or **Consolidated Basis**" means, with respect to any Financial Statements to be provided, or any financial calculation or determination to be made, under or for purposes of this Agreement or any other Financing Document, the method referred to in Section 1.4 (*Financial Calculations*).

"**Consolidated EBITDA**" means, as of any Determination Date and in respect of the Determination Period ending on such Determination Date, for the Borrower and its Subsidiaries determined on a Consolidated Basis in accordance with the Accounting Principles, the sum (determined without duplication) of: (i) the Consolidated Operating Income for such Determination Period *plus* (ii) depreciation and amortization to the extent deducted when determining Consolidated Operating Income for such Determination Period *plus/minus* (iii) other applicable items, such as other Non-Cash Items not previously accounted for, if any, to the extent deducted/added when determining Consolidated Operating Income for such Determination Period.

"**Consolidated Operating Income**" means, as of any Determination Date and in respect of any period of determination ending on such Determination Date, for the Borrower and its Subsidiaries determined on a Consolidated Basis in accordance with the Accounting Principles, the sum (determined without duplication) of: (i) revenues, *minus* (ii) the cost of goods sold, *minus* (iii) general, administrative, and sale expenses, *minus* (iv) depreciation and amortization.

"**Debt Service**" means, as of any Determination Date and in respect of the Determination Period ending on such Determination Date, for the Borrower and its Subsidiaries determined on a Consolidated Basis in accordance with the Accounting Principles, the sum (determined without duplication) of: (i) all scheduled payments (whether or not actually paid) falling due on account of principal of Debt and interest and other charges on Debt, *plus* (ii) any payment made or required to be made to any debt service account under the terms of any agreement providing for Debt *plus* (iii) all payments (whether or not actually paid) falling due on account of operating leases, including interest and any other fees and charges related to such operating leases.

"**Determination Date**" means March 31, June 30, September 30, and December 31, of each year.

"**Determination Period**" means each period of four Financial Quarters ending on the relevant Determination Date.

Annex 1-16

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

"**Dividends**" means, as of any Determination Date and in respect of the Determination Period ending on such Determination Date, the aggregate amount of Restricted Payments made by the Borrower during such Determination Period (disregarding, for this purpose, the parenthetical relating to the IDB Invest Put Option Agreement in clause (i) of the definition of Restricted Payments herein).

"**Financial Statements**" means, with respect to any Person, as of any relevant date and period, such Person's balance sheet, income statement, cash flow statement, statement of sources and uses of funds, statement showing changes in equity and any exhibits and notes thereto, which shall be prepared (i) in respect of the Borrower, in Colombian Pesos on a Consolidated Basis and (ii) in respect of each Subsidiary, in its respective local currency, all prepared on a consistent basis in accordance with the Accounting Principles.

"**IRR**" means the internal rate of return on the IDB Invest Loan or portion thereof being prepaid, expressed as an annualized rate based on a three hundred sixty five (365)-day period used to discount each cash flow in Dollars in respect of the IDB Invest Loan or portion thereof being prepaid, calculated from the date or dates of such cash flows, and taking into account the amounts of the following, such that the present value of the aggregate of such cash flows equals zero:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) each Disbursement of the IDB Invest Loan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all payments of interest, Additional Interest and fees made hereunder; and

&nbsp;&nbsp;&nbsp;&nbsp;(iii) all principal payments made in respect of the IDB Invest Loan.

For avoidance of doubt, the IRR shall be the output value obtained using the 'XIRR' function of Microsoft Excel in which: (a) the cash flows and dates thereof set forth in the immediately preceding sentence shall be the inputs in the worksheet; and (b) the net cash inflows of interest, Additional Interest, fees and principal payments to IDB Invest shall be positive inputs and all Disbursements of the IDB Invest Loan shall be negative inputs in the worksheet.

"**Maximum Net Debt to Consolidated EBITDA Ratio**" means, as of any Determination Date, the ratio obtained by dividing (i) the outstanding Net Financial Debt as of such Determination Date by (ii) the aggregate amount of Consolidated EBITDA for the Determination Period ending on such Determination Date.

"**Minimum Historical DSCR**" means, as of any Determination Date, the ratio obtained by dividing (i) the sum (determined without duplication) of (a) the Cash Flow Available for Debt Service for the Determination Period ending on such Determination Date, *plus* (b) Cash Held at the Beginning of the Period for such Determination Period, by (ii) the Debt Service for such Determination Period.

"**Minimum Prospective DSCR**" means, as of any Determination Date, the ratio obtained by dividing (i) the sum (determined without duplication) of (a) the Cash Flow Available for Debt Service for the Determination Period ending on such Determination Date, *plus* (b) Cash Held at the Beginning of the Period for such Determination Period, by (ii) the Projected Debt Service for the Relevant Period immediately following such Determination Date.

"**Net Cash Flow from Operations**" means, for any Determination Period, the net cash flows from operations of the Borrower and its Subsidiaries determined on a Consolidated Basis in accordance with the Accounting Principles.

Annex 1-17

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

"**Net Financial Debt**" means, as of any Determination Date, (i) the sum (determined without duplication) of (a) the Borrower's and its Subsidiaries Financial Debt *plus* (b) all remaining payments owing in respect of operating leases, *minus* (ii) cash and marketable securities, determined on a Consolidated Basis in accordance with the Accounting Principles.

"**Non-Cash Items**" means, with respect to any Person for any period, the net aggregate amount (which may be a positive or negative number) of all non-cash expenses and non-cash credits that have been subtracted or, as the case may be, added in calculating the net income of such Person during that period, including depreciation, amortization, deferred taxes, provisions for severance pay of staff and workers.

"**Projected Debt Service**" means, for any Relevant Period, for the Borrower and its Subsidiaries determined on a Consolidated Basis, the sum (determined without duplication) of: (i) all scheduled payments projected to fall due on account of principal of Debt and interest and other charges on Debt, *plus* (ii) any payment projected to be made or required to be made to any debt service account under the terms of any agreement providing for the Debt during the Relevant Period; *provided*, that, for the computation of interest payable during any period for which the applicable rate is not yet determined, that interest shall be computed at the rate in effect on the relevant date of calculation *plus* (iii) all scheduled payments projected to fall due on account of operating leases during such Relevant Period, including interest and any other fees and charges related to such operating leases.

"**Relevant Period**" means each period of four Financial Quarters immediately following a Determination Date.

"**Right Use of Assets**" means, as of any Determination Date, any right use of assets reflected on the Consolidated balance sheet of the Borrower and its Subsidiaries.

Annex 1-18

IDB Invest Loan Agreement

<u>Execution Version</u>

Loan Number 13814-01

CONFIDENTIAL

**ANNEX 2**

**ENVIRONMENTAL AND SOCIAL PROVISIONS**

**Section 1.** **<u>E&S Definitions</u>**.

Capitalized terms used but not defined in this <u>Annex 2</u> (*Environmental and Social Provisions*) shall have the meanings provided in <u>Annex 1</u> (*Definitions*). The following terms are used in this <u>Annex 2</u> and throughout this Agreement and all exhibits, schedules, plans, reports, and certifications presented and approved thereunder with the following meanings:

**"Corrective Action Plan"** means a corrective or mitigation plan, including a cost breakdown, allocation of responsibilities, and an implementation schedule, which, once initiated, will enable the Borrower to correct and remediate the damage and adverse effects resulting from any failure to comply with the Environmental and Social Action Plan, the Sustainability Policy, the Environmental and Social Standards and Guidelines, or the Environmental and Social Legislation, or to correct or mitigate the adverse effects of any Serious Incident.

**"Environmental and Social Action Plan"** means the plan prepared by the Borrower in accordance with <u>Annex 2A</u> (*Environmental and Social Action Plan*) attached to this Annex 2, which shall indicate the necessary actions, including the allocation of responsibilities and implementation schedule, for the purpose of ensuring that the design, operation, and maintenance of all the Borrower's facilities, plants, and equipment meet and maintain compliance with the Environmental and Social Standards and Guidelines, the Environmental and Social Legislation and the Sustainability Policy.

**"Environmental and Social Legislation"** means all applicable statutes, laws, regulations, decrees, resolutions, codes, orders, plans, court decrees, and applicable judicial or administrative decisions or interpretations issued at the international, national, state, municipal, or sector level that govern or make reference to Environmental and Social Issues.

**"Environmental and Social Monitoring Report"** means the true, accurate and complete report on compliance with the environmental guidelines established in the Environmental and Social Action Plan, confirming compliance with said guidelines or detailing the noncompliance thereof, together with the remedial action taken to ensure compliance with said Environmental and Social Action Plan.

**"Environmental and Social Standards and Guidelines"** means sector-specific guidelines and performance standards that contain best environmental and social practices to be implemented by the company in the design, operation, and maintenance of all its facilities, plants, and equipment, pursuant to the Sustainability Policy and other guiding regulations and documents listed in the Environmental and Social Action Plan.

**"Serious Incident"** means an event of accident, death, spillage of hazardous substances, explosions, fire, environmental or social claims or suits, significant complaints from the public or environmental authorities, or significant personal injury, among others.

Annex 2-1

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

**"Sustainability Policy"** means the IDB Invest Environmental and Social Sustainability Policy (document CII/GP-16-15), available at: https://idbinvest.org/sites/default/files/2020-05/idb_invest_sustainability_policy_2020_EN.pdf.

**Section 2.** **<u>E&S Representations and Warranties</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1. *Environmental and Social Considerations*. The Borrower declares that it and each of the Guarantors is in substantial compliance with the Environmental and
Social Legislation, the Sustainability Policy and the applicable Environmental and Social Standards and Guidelines, with the exception
of any action specifically noted in the Environmental and Social Action Plan as still pending with respect to achieving said substantial
compliance **.** 

**Section 3. <u>E&S Conditions Precedent to First Disbursement</u>.**

[Intentionally Omitted.]

**Section 4. <u>E&S Conditions Precedent to All Disbursements</u>**.

[Intentionally Omitted.]

**Section 5. <u>E&S Affirmative Covenants</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. Unless previously authorized in writing by IDB Invest, the Borrower shall,
and shall cause each of the Guarantors to, comply with the following obligations set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Due Diligence and Use of Loan Proceeds</u>. Conduct its business with due diligence, in an efficient
and environmentally responsible manner, adhering fully to the customary practices in its area of business and ensuring that all its operations
are carried out in accordance with market conditions. Execute the Environmental and Social Action Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Annual Reporting</u>. Within no more than forty five (45) days from the close of each Financial Year,
provide IDB Invest an Environmental and Social Monitoring Report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Laws, Rules, and Regulations.</u> Conduct all its activities in accordance with all national, provincial,
and municipal laws, rules, and regulations applicable to said activities, including any applicable Environmental and Social Legislation;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Licenses, Approvals or Permits</u>. Maintain in force all licenses, approvals, and permits necessary
for its business and operations, in general, including, but not limited to, those issued by any Governmental Authority and required by
any Environmental and Social Legislation. Comply with and observe all conditions and restrictions contained in or imposed by any such
licenses, approvals, or permits.

Annex 2-2

IDB Invest Loan Agreement

Loan Number 13814-01

CONFIDENTIAL

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2. *Environmental and Social Considerations*. Design, build, operate,
and maintain all of the Borrower's facilities, plants, and equipment in accordance with the requirements set forth in the Environmental
and Social Action Plan, the Environmental and Social Legislation, the Environmental and Social Standards and Guidelines, and the Sustainability
Policy. In the event that the Borrower or any Guarantor detects:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any noncompliance with the Environmental and Social Action Plan, the Environmental and Social Legislation,
the Environmental and Social Standards and Guidelines, and/or the Sustainability Policy; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any Serious Incident, the Borrower shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) notify IDB Invest within ten (10) Business Days from occurrence in the event of any such noncompliance,
or within seventy-two (72) hours in the event of a Serious Incident, providing a reasonably detailed written description of such noncompliance
or Serious Incident, including, but not limited to an account of (i) fatalities or serious injuries to personnel, and/or (ii) releases
of hazardous substances, and/or (iii) unplanned releases, and/or (iv) explosions or fires;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) shall engage, diligently and at its own expense, the services of a qualified professional satisfactory
to IDB Invest, to investigate the noncompliance or Serious Incident and prepare a written report for IDB Invest describing the event,
in the understanding that such report shall include a reasonable description of the event, detailing its extent, magnitude and impact;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) shall take, diligently and at its own expense, all the steps necessary to implement the pertinent Corrective
Action Plan in a form and substance satisfactory to IDB Invest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3. *Monitoring and Inspection Visits.* At the request of IDB Invest, allow
IDB Invest or the person it designates to visit and inspect the Borrower's and each Guarantor's properties; conduct appraisals;
examine the applicable business records, accounting books, and tax returns; and request from the Borrower's and each Guarantor's
officials information about the Borrower's and each Guarantor's activities, assets, operational activities, financial situation,
operating results, outlook, and the state of its compliance with the requirements pertaining to the Environmental and Social Issues and
the implementation of the Environmental and Social Action Plan, at appropriate times and with appropriate frequency (at least once a year).

**Section 6.** **<u>E&S Negative Covenants</u>**.

[Intentionally Omitted.]

**Section 7.** **<u>Events of Default</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1. The Borrower fails to implement or comply with the Environmental and Social
Action Plan and fails to remedy said noncompliance within thirty (30) days from IDB Invest's corresponding written notice to the
Borrower.

Annex 2-3

IDB Invest Loan Agreement

## Exhibit 23.1

**Exhibit 23.1**

**CONSENT OF INDEPENDENT REGISTERED ACCOUNTING FIRM**

We consent to the reference to our firm under the caption "Experts" and the use of our report dated March 23, 2023 in the Registration Statement (Form F-1) and related Prospectus of Merqueo Holdings, for the registration of its ordinary shares of common stock.

/s/ Ernst & Young Audit S.A.S.

A member practice of Ernst & Young Global Limited

Bogotá, Colombia

March 23, 2023

A member firm of Ernst & Young Global Limited