EDGAR 10-K Filing

Company CIK: 1856161
Filing Year: 2022
Filename: 1856161_10-K_2022_0001829126-22-007194.json

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ITEM 1. BUSINESS
Item 1. Business.
Overview
We
believe that the members of our team have proven themselves to be successful investors, owners, financiers and operators whose strategic
skills and extensive network of global relationships will help us identify attractive potential Business Combination targets in order
to pursue significant value creation opportunities. Members of our team have experienced considerable successes as investors in, and
operators of, multiple globally successful and consumer-oriented companies. Our team’s collective abilities to establish a
vision for the future and then acquire and/or operate and expand a global business, coupled with a disciplined investing framework, have
resulted in over $10 billion in value creation to investors and stockholders. Our team has public company leadership experience
across multiple market cycles as well as global transactional expertise, including with successful initial public offerings, in the United States,
Europe and Asia.
Our
team intends to identify businesses that we believe can benefit from our previous experiences and for which there is a clear and convincing
vision for the future. We believe that there will be substantial transaction flow with many proprietary opportunities developed by our
team and sourced from our unique network of relationships. Our objective is to create value for our shareholders by applying our strategy
of identifying promising businesses and leveraging our operational and capital markets expertise to complete a business combination and
accelerate future growth.
We
are a blank check company incorporated as a Cayman Islands exempted company on March 23, 2021. We were formed for the purpose of
effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar Business Combination with one or more
businesses (the “Business Combination”). While we may pursue an initial Business Combination target in any industry or geographic
location, we intend to focus our search for a target business operating in the lifestyle, health and wellness and technology sectors.
Our Sponsor is Pearl Holdings Sponsor LLC, a Cayman Islands limited liability company (the “Sponsor”).
Our
registration statement for our initial public offering (the “Initial Public Offering”) was declared effective on December
14, 2021 (the “Effective Date”). On December 17, 2021, we consummated our Initial Public Offering of 17,500,000 units at
$10.00 per unit (the “Units” and, with respect to the Class A ordinary shares included in the Units offered, the “Public
Shares”), and the sale of 9,000,000 Private Placement Warrants (the “Private Placement Warrants”) to our Sponsor, at
a price of $1.00 per Private Placement Warrant in a private placement (the “Private Placement”) that closed simultaneously
with our Initial Public Offering. Each Unit consists of one Class A ordinary share and one-half of one redeemable warrant.
Each whole warrant entitles the holder to purchase one Class A ordinary share at a price of $11.50 per share. On December 20, 2021
the underwriter partially exercised its over-allotment option and stated its intention to purchase an additional 2,500,000 of the 2,625,000
over-allotment Units available. The over-allotment closed on December 22, 2021.
Simultaneously
with the closing of our Initial Public Offering, our Sponsor purchased an aggregate of 9,000,000 Private Placement Warrants, each exercisable
to purchase one Class A ordinary share at $11.50 per share, at a price of $1.00 per warrant, or $9,000,000 in the aggregate. Simultaneously
with the closing of the over-allotment, the Sponsor purchased an additional 1,000,000 Private Placement Warrants, generating gross proceeds
to the Company of $1,000,000.
Following
the closing of the Initial Public Offering and the over-allotment, $204,000,000 ($10.20 per Unit) from the net proceeds of the sale of
the Units and the Private Placement Warrants was deposited into a Trust Account (the “Trust Account”) and will be invested
only in U.S. government treasury bills with a maturity of 185 days or less or in money market funds investing solely in U.S. Treasuries
and meeting certain conditions under Rule 2a-7 under the Investment Company Act. Based on current interest rates, we estimate that the
interest earned on the Trust Account will be approximately $12,000 per year, assuming an interest rate of 0.01% per year. We will not
be permitted to withdraw any of the principal or interest held in the Trust Account except for the withdrawal of interest to pay taxes,
if any. The funds held in the Trust Account will not otherwise be released from the Trust Account until the earliest of: (1) the
completion of the initial Business Combination; (2) the redemption of any public shares.
Our
management has broad discretion with respect to the specific application of the net proceeds of the Initial Public Offering and the Private
Placement Warrants, although substantially all of the net proceeds are intended to be generally applied toward consummating a Business
Combination (less deferred underwriting commissions).
Our
Business Combination must be with one or more target businesses that together have a fair market value equal to at least 80% of the net
assets held in the Trust Account (net of amounts disbursed to management for working capital purposes, if permitted, and excluding the
amount of any deferred underwriting discount held in trust) at the time of the signing a definitive agreement in connection with the
initial Business Combination. However, we will only complete a Business Combination if the post-transaction company owns or acquires
50% or more of the outstanding voting securities of the target or otherwise acquires a controlling interest in the target sufficient
for it not to be required to register as an investment company under the Investment Company Act of 1940, as amended (the “Investment
Company Act”). There is no assurance that we will be able to successfully effect a Business Combination.
We
intend to effectuate a Business Combination using the proceeds from the Initial Public Offering and Private Placement, and from additional
issuances of, if any, our capital stock and our debt, or a combination of cash, stock and debt. We have not commenced any operations.
All activity for the period from March 23, 2021 (inception) through December 31, 2021 relates to our formation, the preparation
for the Initial Public Offering and following the closing of the Initial Public Offering, the search for a prospective initial Business
Combination. We will not generate any operating revenues until after the completion of our initial Business Combination, at the earliest.
We will generate non-operating income in the form of interest income on cash and cash equivalents from the proceeds derived from
the Initial Public Offering. Based on our business activities, we are a “shell company” as defined under the Exchange
Act of 1934, as amended (the “Exchange Act”), because we have no operations and nominal assets consisting almost entirely
of cash.
We
will provide the Public Shareholders with the opportunity to redeem all or a portion of their Public Shares upon the completion of the
initial Business Combination either: (1) in connection with a general meeting called to approve the Business Combination or (2) by
means of a tender offer. The decision as to whether we will seek shareholder approval of a proposed Business Combination or conduct a
tender offer will be made by us, solely in our discretion, and will be based on a variety of factors such as the timing of the transaction
and whether the terms of the transaction would require us to seek shareholder approval under applicable law or stock exchange listing
requirement. The shareholders will be entitled to redeem their shares at a per-share price, payable in cash, equal to the aggregate
amount then on deposit in the Trust Account calculated as of two business days prior to the consummation of our initial Business Combination,
including interest (net of taxes payable), divided by the number of then issued and outstanding Public Shares, subject to the limitations
described herein. The amount in the Trust Account is initially anticipated to be $10.20 per Public Share. The per-share amount to
be distributed to investors who properly redeem their shares will not be reduced by the deferred underwriting commissions we will pay
to the underwriters.
We
will have only 18 months, until June 17, 2023 (or up to 24 months, until December 17, 2023, if our Sponsor exercises its extension
options) from the closing of the Initial Public Offering (the “Combination Period”) to complete the initial Business Combination.
If we are unable to complete the initial Business Combination within the Combination Period, we will (1) cease all operations except
for the purpose of winding up; (2) as promptly as reasonably possible but not more than 10 business days thereafter, redeem the
public shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including
interest (less up to $100,000 of interest to pay dissolution expenses and which interest shall be net of taxes payable), divided by the
number of then issued and outstanding Public Shares, which redemption will completely extinguish Public Shareholders’ rights as
shareholders (including the right to receive further liquidating distributions, if any); and (3) as promptly as reasonably possible
following such redemption, subject to the approval of the remaining shareholders and our board of directors, liquidate and dissolve,
subject in each case to our obligations under Cayman Islands law to provide for claims of creditors and the requirements of other applicable
law. There will be no redemption rights or liquidating distributions with respect to our warrants, which will expire worthless if we
fail to complete our initial Business Combination within the Combination Period.
Effecting
a Business Combination
Our
Business Strategy
We
intend to identify, acquire, and manage a high-quality business that can benefit from our global investment and management experience
and capital markets expertise to drive ongoing value creation post-Business Combination in the public markets. We believe the sourcing,
valuation, diligence and execution capabilities of our team will provide us with a significant pipeline of investment opportunities from
which to evaluate and select a business that will benefit from our expertise.
We
expect that our pipeline will be reflective of large numbers of companies owned by entrepreneurs, venture capital and other private investment
funds that are seeking a liquidity event and augmented operating and marketing expertise. In addition, we believe our pipeline could
include Business Combinations with multiple companies in similar industries that result in synergistic benefits. We also believe that
large corporations will continue to divest attractive but under-resourced businesses, or the intellectual property associated with
such businesses, that need repositioning and are in sectors and with business models that we understand.
We
are confident in our reputation of being founder- and management-friendly and believe that our prior successes allow us to present
a compelling set of competitive advantages and capabilities that enhance our efforts to complete a Business Combination:
● Demonstrated management
track record. Our team has decades of experience building industry-leading companies that have delivered excellent stockholder
value creation over an extended period as we have a history of owning, operating, and financing companies across all stages of the
business lifecycle from emerging technology companies to growth-oriented businesses to established franchises. We have identified,
developed and acquired multi-billion-dollar businesses that have grown significantly in value through both organic and inorganic
strategies. We have also elevated our brands by employing innovative technologies, new marketing tactics, demographic targeting and
modern distribution models.
● Differentiated sourcing
network. Our team has owned and operated global businesses and has extensive operating and M&A transaction experience across
the United States, Europe and Asia, and members of our team have a history of sourcing over 500 potential investment opportunities.
Our deep relationships with owners and management teams, public and private companies, private equity investors, intermediaries,
and financing providers provides us with a differentiated sourcing network.
● Value-enhancing operational
expertise. Our team has significant experience attracting, enhancing and advising management teams as they embark on growth and
ownership transition cycles. We are also highly regarded for having always maintained a focused and concentrated approach to investments
rather than the more portfolio-centric strategy favored by many investment firms. Importantly, we have successfully managed
businesses through transitional periods of development, including geographic growth and offering expansion by evolving all aspects
of strategy and business processes related to sales, marketing, operations, supply chain, systems, infrastructure and personnel.
We believe that our combined prior experiences enhance our attractiveness as a partner or buyer derived from our expertise in the
following key themes: Partner with Management; Local to Global; Contemporize and Reposition; Adapt to New Technologies or Else; Build
and/or Buy; and How and When to go Public. We believe that we are well-positioned to identify management teams, entrepreneurs
and business owners who share our vision for long-term, sustainable value creation.
● History of transformational
acquisitions. Our team has been involved in noteworthy M&A transactions with our prior businesses, including acquisitions
related to Experian, Argos, Arcade and Shaklee and divestitures related to GUS. We have corporate, financial and investment experience
with a myriad of transaction structures including initial public offerings, public and private company mergers and acquisitions,
founder exits, transformational mergers and divisional combinations and spin-offs.
● Public and capital markets
experience. We have a deep understanding of the requirements necessary to operate a growing public company, including accessing
capital markets and M&A experience, across business cycles. As a public entity, we believe that we can offer a wide range of
advantages to shareholders such as leveraging our team’s collective skills and experience to accelerate profitable growth,
broaden access to debt and equity capital providers, provide liquidity alternatives for employees and investors, and provide public
currency for future acquisitions. Importantly, we believe that our relationships with financial institutions and leading investors
will enhance our ability to consummate a Business Combination expeditiously.
Our
management team, assisted by members of our advisory board and our independent directors, communicate with their networks of relationships
to articulate the parameters for our search for a target company and a potential Business Combination and the process of pursuing and
reviewing potential opportunities. In addition to any potential target businesses we may identify on our own, we anticipate that other
target business candidates will be brought to our attention from various unaffiliated sources, including family business owners, entrepreneurs,
management teams, investment market participants, private equity and other investment funds and large business enterprises seeking to
divest non-core assets or divisions.
Business
Combination Criteria
We
believe that our team is well positioned to identify attractive Business Combination opportunities with a compelling industry backdrop
and an opportunity for growth. We expect to favor potential target companies with certain industry and business characteristics that
support our level of commitment to the target. Key industry characteristics that are of paramount importance in our considerations include
compelling long-term growth prospects, attractive competitive dynamics, and acquisition/consolidation opportunities, in tandem with
operating in an industry that exhibits these favorable attributes. Key business characteristics we look for in a target include: durability,
market leadership, innovation, and focus on strong business performance through cycles. Target companies should also have a strong management
team and innovative products, technologies, marketing strategies, consumer engagement approaches and distribution models.
Consistent
with our business strategy, we have identified the following general criteria and guidelines that we believe are important in evaluating
prospective target businesses. We are focused on the long-term growth and potential of our acquisition target, and we will implement
the operating improvements that we believe are most likely to yield sustainable growth and maximize value creation. We intend to acquire
one or more businesses that:
● address the needs of the
global consumer and have established a clear and convincing vision for the future;
● are family or founder-owned,
venture or investor-backed, or corporate divestitures;
● have high potential for
future growth in a large addressable market;
● have a strong historical
performance and attractive margin profile;
● are led by outstanding
management teams;
● would benefit from our
team’s expertise as managers, acquirers and financiers to accelerate growth;
● are positioned to benefit
from a significant capital infusion to realize strategic initiatives; and
● can deliver attractive
risk-adjusted returns for our shareholders across business cycles.
These
criteria and guidelines are not intended to be exhaustive. Any evaluation relating to the merits of a particular initial Business Combination
may be based, to the extent relevant, on these general criteria and guidelines as well as other considerations, factors, criteria, and
guidelines that our team may deem relevant. In the event that we decide to enter into our initial Business Combination with a target
business that does not meet the above criteria and guidelines, we will disclose that the target business does not meet the above criteria
and guidelines in our shareholder communications related to our initial Business Combination, which would be in the form of tender offer
documents or proxy solicitation materials that we would file with the SEC.
Additional
Disclosures
Our
Acquisition Process
Our
directors and officers presently have, and any of them in the future may have, additional, fiduciary or contractual obligations to other
entities pursuant to which such officer or director is or will be required to present a Business Combination opportunity to such entity.
Accordingly, if any of our directors or officers becomes aware of a Business Combination opportunity that is suitable for an entity to
which he or she has then-current fiduciary or contractual obligations, he or she may need to honor these fiduciary or contractual
obligations to present such Business Combination opportunity to such entity, or in the case of a non-compete restriction, may not
present such opportunity to us at all, subject to his or her fiduciary duties under Cayman Islands law. Craig E. Barnett intends to devote
a majority of his time to our affairs, however, none of our directors or officers are required to commit any specified amount of time
to our affairs, and, accordingly, will have conflicts of interest in allocating management time among various business activities, including
identifying potential Business Combinations and monitoring the related due diligence.
We
do not believe, however, that the fiduciary duties or contractual obligations of our directors or officers will materially affect our
ability to identify and pursue Business Combination opportunities or complete our initial Business Combination. See “Item 1.A.
Risk Factors - Risks Related to our Team and Their Respective Affiliates - Certain of our directors, officers, and advisory
board members are now, and all of them may in the future become, affiliated with entities engaged in business activities similar to those
intended to be conducted by us and, accordingly, may have conflicts of interest in determining to which entity a particular business
opportunity should be presented.”
Our
Sponsor is managed by Craig E. Barnett, our Chairman and our Chief Executive Officer, and Mr. Barnett is the Chief Executive Officer
of Meadow Lane (all references to “Meadow Lane” herein are to Meadow Lane Capital LLC, a New York limited liability company,
and its affiliated entities, excluding the Company and the Sponsor). In addition, our Sponsor is owned by entities controlled by Mr. Barnett
and the Meadow Lane affiliates. As a result, Mr. Barnett and the Meadow Lane affiliates may exert a substantial influence on other
actions requiring a shareholder vote, potentially in a manner that you do not support, including appointment of our directors, amendments
to our amended and restated memorandum and articles of association and approval of major corporate transactions. If our Sponsor purchases
any Class A ordinary shares in the open market or in privately negotiated transactions, this would increase their influence over
such actions. See “Item 1.A. Risk Factors - Risks Related to our Team and Their Respective Affiliates - Our
Sponsor is managed by Craig E. Barnett, our Chairman and Chief Executive Officer, and is owned by entities controlled by him and associated
with Meadow Lane. As a result, Mr. Barnett and the Meadow Lane affiliates may exert a substantial influence on actions requiring
shareholder vote, potentially in a manner that you do not support, and their interests may differ from your interests.” We do not
believe, however, that the duties and obligations of the Meadow Lane affiliates will materially affect our ability to identify and pursue
Business Combination opportunities or complete our initial Business Combination.
Meadow
Lane may become aware of a potential Business Combination opportunity that may be an attractive opportunity for our Company. However,
Meadow Lane is not under any obligation to source any potential opportunities for our initial Business Combination or refer any such
opportunities to our Company or provide any other services to our Company. Meadow Lane’s role with respect to our Company is expected
to be primarily passive and advisory in nature. Meadow Lane may have fiduciary and/or contractual duties to its investment vehicles and
to companies in which Meadow Lane has invested. As a result, Meadow Lane may have a duty to offer Business Combination opportunities
to certain other investment vehicles or other entities before other parties, including our Company. Additionally, certain companies in
which Meadow Lane has invested may enter into transactions with, provide goods or services to, or receive goods or services from an entity
with which we seek to complete our initial Business Combination. Transactions of these types may present a conflict of interest because
Meadow Lane may directly or indirectly receive a financial benefit as a result of such transaction.
We
believe that any such potential conflicts of interest of Meadow Lane will be naturally mitigated, in part, by the differing nature of
targets that Meadow Lane typically considers most attractive for its investment activities, as compared to our activities related to
pursuing an initial Business Combination. Meadow Lane’s investment activities typically involve investing in private companies,
and while Meadow Lane may take a company public, it would typically invest in such an entity several years prior to an initial public
offering, not at the time of the initial public offering. In contrast, the acquisition targets that we expect to find most attractive
would generally have capital structures and existing business operations and infrastructure to go public immediately upon our acquisition.
As a result, we may become aware of a potential transaction that is not a fit for the investment activities of Meadow Lane but that is
an attractive opportunity for us. Notwithstanding our belief regarding natural mitigation, Meadow Lane may compete with us for acquisition
opportunities that fall within Meadow Lane’s investment objectives or strategies. A decision by Meadow Lane to pursue an opportunity
would preclude us from pursuing it and could have a negative impact on our ability to complete our partnering transaction.
Our
advisory board members are not under any obligation to source any potential opportunities for our initial Business Combination or refer
any such opportunities to our Company or provide any other services for our Company. Such advisors’ roles with respect to our Company
are expected to be primarily passive and advisory in nature. Our advisory board members may have fiduciary and/or contractual duties
to certain companies but do not have any fiduciary obligations to our Company. As a result, our advisory board members may have a duty
to offer Business Combination opportunities to certain other companies before our Company. Additionally, certain companies affiliated
with our advisory board members may enter into transactions with, provide goods or services to, or receive goods or services from an
entity with which we seek to complete our initial Business Combination. Transactions of these types may present a conflict of interest
because our advisory board members may directly or indirectly receive a financial benefit as a result of such transaction. See “Item
1.A. Risk Factors - Risks Related to our Team and Their Respective Affiliates - Our advisory board members are
not under any obligation to source any potential opportunities for our initial Business Combination or refer any such opportunities to
our Company or provide any other services for our Company.”
Past
experience or performance of our team and our advisory board and their respective affiliates is not a guarantee of either (1) our
ability to successfully identify and execute a transaction or (2) success with respect to any Business Combination that we may consummate.
You should not rely on the historical record of our team or our advisory board or their respective affiliates as indicative of future
performance. See “Item 1.A. Risk Factors - Past performance of Meadow Lane, our team and their respective affiliates
may not be indicative of future performance of an investment in the Company.”
Initial
Business Combination
Nasdaq
listing rules require that our initial Business Combination must be with one or more operating businesses or assets with a fair market
value equal to at least 80% of the assets held in the Trust Account (excluding the deferred underwriting commissions and taxes payable
on the income earned on the Trust Account) at the time of the agreement to enter into our initial Business Combination. We refer to this
as the 80% of fair market value test. If our board of directors is not able to independently determine the fair market value of the target
business or businesses, we will obtain an opinion from an independent investment banking firm or another independent entity that commonly
renders valuation opinions with respect to the satisfaction of such criteria. Unless we complete our initial Business Combination with
an affiliated entity, we are not required to obtain an opinion that the price we are paying is fair to our Company from a financial point
of view. We do not currently intend to purchase multiple businesses in unrelated industries in conjunction with our initial Business
Combination, although there is no assurance that will be the case.
We
anticipate structuring our initial Business Combination so that the post-transaction company in which our Public Shareholders own
shares will own or acquire 100% of the issued and outstanding equity interests or assets of the target business or businesses. We may,
however, structure our initial Business Combination such that the post-transaction company owns or acquires less than 100% of such
interests or assets of the target business in order to meet certain objectives of the target management team or shareholders or for other
reasons, but we will only complete such Business Combination if the post-transaction company owns or acquires 50% or more of the
issued and outstanding voting securities of the target or otherwise acquires a controlling interest in the target business sufficient
for it not to be required to register as an investment company under the Investment Company Act. Even if the post-transaction company
owns or acquires 50% or more of the voting securities of the target, our shareholders prior to our initial Business Combination may collectively
own a minority interest in the post-transaction company, depending on valuations ascribed to the target and us in our initial Business
Combination transaction. For example, we could pursue a transaction in which we issue a substantial number of new shares in exchange
for all of the issued and outstanding capital stock, shares or other equity securities of a target. In this case, we would acquire a
100% controlling interest in the target. However, as a result of the issuance of a substantial number of new shares, our shareholders
immediately prior to our initial Business Combination could own less than a majority of our issued and outstanding shares subsequent
to our initial Business Combination. If less than 100% of the equity interests or assets of a target business or businesses are owned
or acquired by the post-transaction company, the portion of such business or businesses that is owned or acquired is what will be
valued for purposes of the 80% of fair market value test. If our initial Business Combination involves more than one target business,
the 80% of fair market value test will be based on the aggregate value of all of the target businesses. Notwithstanding the foregoing,
if we are not then listed on Nasdaq for whatever reason, we would no longer be required to meet the foregoing 80% of fair market value
test.
Competition
We
expect to encounter intense competition from other entities having a business objective similar to ours, including private investors
(which may be individuals or investment partnerships), other blank check companies and other entities, domestic and international, competing
for the types of businesses we intend to acquire. Many of these individuals and entities are well established and have extensive experience
in identifying and effecting, directly or indirectly, acquisitions of companies operating in or providing services to various industries.
Many of these competitors possess greater technical, human and other resources or more local industry knowledge than we do and our financial
resources will be relatively limited when contrasted with those of many of these competitors. Additionally, the number of blank check
companies looking for Business Combination targets has increased compared to recent years and many of these blank check companies are
sponsored by entities or persons that have significant experience with completing Business Combinations. While we believe there are numerous
target businesses we could potentially acquire with the net proceeds of our Initial Public Offering and the sale of the Private Placement
Warrants, our ability to compete with respect to the acquisition of certain target businesses that are sizable will be limited by our
available financial resources. This inherent competitive limitation gives others an advantage in pursuing the acquisition of certain
target businesses. Furthermore, in the event we seek shareholder approval of our initial Business Combination and we are obligated to
pay cash for our Class A ordinary shares, it will potentially reduce the resources available to us for our initial Business Combination.
Any of these obligations may place us at a competitive disadvantage in successfully negotiating a Business Combination. If we have not
completed our initial Business Combination within the Combination Period, our Public Shareholders may receive only approximately $10.20
per share, or less in certain circumstances, on the liquidation of our Trust Account and our warrants will expire worthless.
Human
Capital
We
currently have three officers and do not intend to have any full-time employees prior to the completion of our initial Business
Combination. Members of our team are not obligated to devote any specific number of hours to our matters but they intend to devote as
much of their time as they deem necessary to our affairs until we have completed our initial Business Combination. The amount of time
that any such person will devote in any time period will vary based on whether a target business has been selected for our initial Business
Combination and the current stage of the Business Combination process.
Item 1.A. Risk Factors.
An
investment in our securities involves a high degree of risk. You should consider carefully all of the risks described below, together
with the other information contained in this Annual Report, including our financial statements and related notes, before making a decision
to invest in our securities. If any of the following events occur, our business, financial condition and operating results may be materially
adversely affected. In that event, the trading price of our securities could decline, and you could lose all or part of your investment.
The risks and uncertainties described below are not the only ones we face. Additional risks and uncertainties that we are unaware of,
or that we currently believe are not material, may also become important factors that adversely affect our business, financial condition
and operating results.
Risks
Relating to Our Search for, and Consummation of or Inability to Consummate, a Business Combination
Our
Public Shareholders may not be afforded an opportunity to vote on our Business Combination, which means we may complete our initial Business
Combination even though a majority of our Public Shareholders do not support such a combination.
We
may not hold a shareholder vote to approve our initial Business Combination unless the Business Combination would require shareholder
approval under applicable law or stock exchange rules or if we decide to hold a shareholder vote for business or other reasons. For instance,
Nasdaq listing rules currently allow us to engage in a tender offer in lieu of a shareholder meeting, but would still require us to obtain
shareholder approval if we were seeking to issue more than 20% of our issued and outstanding shares to a target business as consideration
in any Business Combination. Therefore, if we were structuring a Business Combination that required us to issue more than 20% of our
issued and outstanding shares, we would seek shareholder approval of such Business Combination. However, except as required by applicable
law or stock exchange rules, the decision as to whether we will seek shareholder approval of a proposed Business Combination or will
allow shareholders to sell their shares to us in a tender offer will be made by us, solely in our discretion, and will be based on a
variety of factors such as the timing of the transaction and whether the terms of the transaction would otherwise require us to seek
shareholder approval. Accordingly, we may consummate our initial Business Combination even if holders of a majority of the issued and
outstanding ordinary shares do not approve of the Business Combination we consummate.
If
we seek shareholder approval of our initial Business Combination, our initial shareholders, directors and officers have agreed to vote
in favor of such initial Business Combination, regardless of how our Public Shareholders vote.
Unlike
some other blank check companies in which the initial shareholders agree to vote their Founder Shares in accordance with the majority
of the votes cast by the Public Shareholders in connection with an initial Business Combination, our initial shareholders, directors
and officers have agreed (and their permitted transferees will agree), pursuant to the terms of a letter agreement entered into with
us, to vote their Founder Shares and any Public Shares held by them in favor of our initial Business Combination. A quorum for such meeting
will be present if the one-third of our issued and outstanding ordinary shares entitled to vote at the meeting are represented in
person or by proxy. Our initial shareholders, directors and officers will count toward this quorum and, pursuant to the letter agreement,
our initial shareholders, directors and officers have agreed to vote any Founder Shares and Public Shares held by them (including any
shares purchased in the open market and privately negotiated transactions) in favor of our initial Business Combination. As a result,
in addition to our initial shareholders’ Founder Shares, we would need 7,500,001, or 37.5% (assuming all issued and outstanding
shares are voted), or none (assuming only the minimum number of shares representing a quorum, being one-third of our issued and
outstanding ordinary shares entitled to vote at the meeting, are voted), of the 20,000,000 Public Shares sold in the Initial Public Offering
to be voted in favor of an initial Business Combination in order to have such initial Business Combination approved. Our directors and
officers have also entered into the letter agreement, imposing similar obligations on them with respect to Public Shares acquired by
them, if any. We expect that our initial shareholders and their permitted transferees will own at least 20% of our issued and outstanding
ordinary shares at the time of any such shareholder vote. Accordingly, if we seek shareholder approval of our initial Business Combination,
it is more likely that the necessary shareholder approval will be received than would be the case if such persons agreed to vote their
Founder Shares in accordance with the majority of the votes cast by our Public Shareholders. The agreement by our initial shareholders,
directors and officers to vote in favor of our initial Business Combination and our quorum threshold will increase the likelihood that
we will receive the requisite shareholder approval for such initial Business Combination.
Your
only opportunity to affect the investment decision regarding a potential Business Combination will be limited to the exercise of your
right to redeem your shares from us for cash, unless we seek shareholder approval of such Business Combination.
Since
our board of directors may complete a Business Combination without seeking shareholder approval, Public Shareholders may not have the
right or opportunity to vote on the Business Combination, unless we seek such shareholder approval. Accordingly, if we do not seek shareholder
approval, your only opportunity to affect the investment decision regarding a potential Business Combination may be limited to exercising
your redemption rights within the period of time (which will be at least 20 business days) set forth in our tender offer documents mailed
to our Public Shareholders in which we describe our initial Business Combination.
The
ability of our Public Shareholders to redeem their shares for cash may make our financial condition unattractive to potential Business
Combination targets, which may make it difficult for us to enter into a Business Combination with a target and may not allow us to complete
the most desirable Business Combination or optimize our capital structure.
We
may seek to enter into a Business Combination transaction agreement with a prospective target that requires as a closing condition that
we have a minimum net worth or a certain amount of cash. If too many Public Shareholders exercise their redemption rights, we would not
be able to meet such closing condition and, as a result, would not be able to proceed with the Business Combination. The amount of the
deferred underwriting commissions payable to the underwriters will not be adjusted for any shares that are redeemed in connection with
a Business Combination and such amount of deferred underwriting discount is not available for us to use as consideration in an initial
Business Combination. If we are able to consummate an initial Business Combination, the per-share value of shares held by non-redeeming shareholders
will reflect our obligation to pay and the payment of the deferred underwriting commissions. Furthermore, in no event will we redeem
our Public Shares in an amount that would cause our net tangible assets to be less than $5,000,001 following such redemptions, or any
greater net tangible asset or cash requirement that may be contained in the agreement relating to our initial Business Combination.
Consequently,
if accepting all properly submitted redemption requests would cause our net tangible assets to be less than $5,000,001 or such greater
amount necessary to satisfy a closing condition as described above, we would not proceed with such redemption and the related Business
Combination and may instead search for an alternate Business Combination (including, potentially, with the same target). Prospective
targets will be aware of these risks and, thus, may be reluctant to enter into a Business Combination transaction with us.
The
ability of our Public Shareholders to exercise redemption rights with respect to a large number of our shares may not allow us to complete
the most desirable Business Combination or optimize our capital structure.
At
the time we enter into an agreement for our initial Business Combination, we will not know how many shareholders may exercise their redemption
rights and, therefore, we will need to structure the transaction based on our expectations as to the number of shares that will be submitted
for redemption. If our initial Business Combination agreement requires us to use a portion of the cash in the Trust Account to pay the
purchase price, or requires us to have a minimum amount of cash at closing, we will need to reserve a portion of the cash in the Trust
Account to meet such requirements, or arrange for third-party financing. In addition, if a larger number of shares is submitted
for redemption than we initially expected, we may need to restructure the transaction to reserve a greater portion of the cash in the
Trust Account or arrange for third-party financing. Raising additional third-party financing may involve dilutive equity issuances
or the incurrence of indebtedness at higher than desirable levels. The above considerations may limit our ability to complete the most
desirable Business Combination available to us or optimize our capital structure.
The
ability of our Public Shareholders to exercise redemption rights with respect to a large number of our shares could increase the probability
that our initial Business Combination would be unsuccessful and that you would have to wait for liquidation in order to redeem your shares.
If
our initial Business Combination agreement requires us to use a portion of the cash in the Trust Account to pay the purchase price, or
requires us to have a minimum amount of cash at closing, the probability that our initial Business Combination would be unsuccessful
increases. If our initial Business Combination is unsuccessful, you would not receive your pro rata portion of the Trust Account until
we liquidate the Trust Account. If you are in need of immediate liquidity, you could attempt to sell your shares in the open market;
however, at such time our shares may trade at a discount to the pro rata amount per share in the Trust Account. In either situation,
you may suffer a material loss on your investment or lose the benefit of funds expected in connection with our redemption until we liquidate
or you are able to sell your shares in the open market.
The
requirement that we complete our initial Business Combination within the prescribed time frame may give potential target businesses leverage
over us in negotiating a Business Combination and may limit the time we have in which to conduct due diligence on potential Business
Combination targets, in particular as we approach our dissolution deadline, which could undermine our ability to complete our initial
Business Combination on terms that would produce value for our shareholders.
Any
potential target business with which we enter into negotiations concerning a Business Combination will be aware that we must complete
our initial Business Combination within 18 months (or up to 24 months if our Sponsor exercises its extension options) from
the closing of the Initial Public Offering. Consequently, such target business may obtain leverage over us in negotiating a Business
Combination, knowing that if we do not complete our initial Business Combination with that particular target business, we may be unable
to complete our initial Business Combination with any target business. This risk will increase as we get closer to the end of the 18-month (or
up to 24-month if our Sponsor exercises its extension options) period. In addition, we may have limited time to conduct due diligence
and may enter into our initial Business Combination on terms that we would have rejected upon a more comprehensive investigation. In
July 2021, the SEC charged a special purpose acquisition company for misleading disclosures, which could have been corrected with more
adequate due diligence, and obtained substantial relief against the special purpose acquisition company and its Sponsor. Although we
will invest in due diligence efforts and commit management time and resources to such efforts, there can be no assurance that our due
diligence will unveil all potential issues with a target business and that we or our Sponsor will not become subject to regulatory actions
related to such efforts.
We
may not be able to complete our initial Business Combination within the prescribed time frame, in which case we would cease all operations
except for the purpose of winding up and we would redeem our Public Shares and liquidate, in which case our Public Shareholders may receive
only $10.20 per share, or less than such amount in certain circumstances, and our warrants will expire worthless.
Our
Sponsor, directors and officers have agreed that we must complete our initial Business Combination within 18 months (or up to 24 months
if our Sponsor exercises its extension options) from the closing of the Initial Public Offering. We may not be able to find a suitable
target business and complete our initial Business Combination within such time period. Our ability to complete our initial Business Combination
may be negatively impacted by general market conditions, volatility in the equity and debt markets and the other risks described herein,
including as a result of terrorist attacks, natural disasters, global hostilities, or a significant outbreak of infectious diseases.
For example, the COVID-19 pandemic continues both in the U.S. and globally and, while the extent of the impact of the COVID-19 pandemic
on us will depend on future developments, it could limit our ability to complete our initial Business Combination, including as a result
of increased market volatility, decreased market liquidity and third-party financing being unavailable on terms acceptable to us
or at all. Additionally, the COVID-19 pandemic and other events (such as terrorist attacks, natural disasters, global hostilities,
or a significant outbreak of other infectious diseases) may negatively impact businesses we may seek to acquire. It may also have the
effect of heightening many of the other risks described in this “Risk Factors” section, such as those related to the market
for our securities and cross-border transactions.
If
we have not completed our initial Business Combination within such time period, we will: (1) cease all operations except for the
purpose of winding up; (2) as promptly as reasonably possible but not more than 10 business days thereafter, redeem the Public Shares,
at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest (less
up to $100,000 of interest to pay dissolution expenses and which interest shall be net of taxes payable), divided by the number
of then issued and outstanding Public Shares, which redemption will completely extinguish Public Shareholders’ rights as shareholders
(including the right to receive further liquidating distributions, if any); and (3) as promptly as reasonably possible following
such redemption, subject to the approval of our remaining shareholders and our board of directors, liquidate and dissolve, subject in
each case to our obligations under Cayman Islands law to provide for claims of creditors and the requirements of other applicable law.
In such case, our Public Shareholders may receive only $10.20 per share, or less than $10.20 per share, on the redemption of their shares,
and our warrants will expire worthless. See “Risk Factors - If third parties bring claims against us, the proceeds held in
the Trust Account could be reduced and the per-share redemption amount received by shareholders may be less than $10.20 per share”
and other risk factors herein.
Our
search for a Business Combination, and any target business with which we ultimately consummate a Business Combination, may be materially
adversely affected by the COVID-19 pandemic and other events and the status of debt and equity markets.
The
COVID-19 pandemic, together with resulting voluntary and U.S. federal and state and non-U.S. governmental actions, including, without
limitation, mandatory business closures, public gathering limitations, restrictions on travel and quarantines, has meaningfully disrupted
the global economy and markets. Although the long-term economic fallout of the COVID-19 pandemic is difficult to predict, it
has and is expected to continue to have ongoing material adverse effects across many, if not all, aspects of the regional, national and
global economy. The COVID-19 pandemic has resulted in, and a significant pandemic of other infectious diseases could result in,
a widespread health crisis that has, and in the future could, materially adversely affect the economies and financial markets worldwide,
and the business of any potential target business with which we may consummate a Business Combination could be materially adversely affected.
Furthermore, we may be unable to complete an initial Business Combination if concerns relating to COVID-19 or other events restrict travel,
limit the ability to have meetings with potential investors, limit the ability to conduct due diligence or limit the ability of a potential
target company’s personnel, vendors and services providers to negotiate and consummate a transaction in a timely manner. The extent
to which COVID-19 impacts our search for an initial Business Combination will depend on future developments, which are highly uncertain
and cannot be predicted, including new information which may emerge concerning the severity of and perceptions to COVID-19 and its
variants and the actions to contain COVID-19 or treat its impact, among others. If the disruptions posed by COVID-19 or other
events (such as terrorist attacks, natural disasters or a significant outbreak of other infectious diseases) continue for a prolonged
period of time, our ability to consummate a Business Combination, or the operations of a target business with which we ultimately consummate
a Business Combination, may be materially adversely affected.
In
addition, our ability to consummate a transaction may be dependent on the ability to raise equity and debt financing which may be impacted
by COVID-19 and other events, including as a result of increased market volatility, decreased market liquidity and third-party financing
being unavailable on terms acceptable to us or at all.
Finally,
the COVID-19 pandemic or other events (such as terrorist attacks, natural disasters, global hostilities, or a significant outbreak
of other infectious diseases) may also have the effect of heightening many of the other risks described in this “Risk Factors”
section, such as those related to the market for our securities and cross-border transactions.
If
we seek shareholder approval of our initial Business Combination, our Sponsor, directors, officers, advisors or any of their respective
affiliates may elect to purchase shares or warrants from Public Shareholders or warrant holders, which may influence a vote on a proposed
Business Combination and reduce the public “float” of our securities.
If
we seek shareholder approval of our initial Business Combination and we do not conduct redemptions in connection with our initial Business
Combination pursuant to the tender offer rules, our Sponsor, directors, officers, advisors or any of their respective affiliates may
purchase Public Shares or warrants in privately negotiated transactions or in the open market either prior to or following the completion
of our initial Business Combination.
Any
such price per share may be different than the amount per share a Public Shareholder would receive if it elected to redeem its shares
in connection with our initial Business Combination. Additionally, at any time at or prior to our initial Business Combination, subject
to applicable securities laws (including with respect to material non-public information), our Sponsor, directors, officers, advisors
or any of their respective affiliates may enter into transactions with investors and others to provide them with incentives to acquire
Public Shares, vote their Public Shares in favor of our initial Business Combination or not redeem their Public Shares. However, our
Sponsor, directors, officers, advisors or any of their respective affiliates are under no obligation or duty to do so and they have no
current commitments, plans or intentions to engage in such transactions and have not formulated any terms or conditions for any such
transactions. The purpose of such purchases could be to vote such shares in favor of our initial Business Combination and thereby increase
the likelihood of obtaining shareholder approval of our initial Business Combination or to satisfy a closing condition in an agreement
with a target that requires us to have a minimum net worth or a certain amount of cash at the closing of our initial Business Combination,
where it appears that such requirement would otherwise not be met. The purpose of any such purchases of public warrants could be to reduce
the number of public warrants outstanding or to vote such warrants on any matters submitted to the warrant holders for approval in connection
with our initial Business Combination. This may result in the completion of our initial Business Combination that may not otherwise have
been possible.
In
addition, if such purchases are made, the public “float” of our securities and the number of beneficial holders of our securities
may be reduced, possibly making it difficult to maintain or obtain the quotation, listing or trading of our securities on a national
securities exchange.
If
a shareholder fails to receive notice of our offer to redeem our Public Shares in connection with our initial Business Combination, or
fails to comply with the procedures for tendering its shares, such shares may not be redeemed.
We
will comply with the tender offer rules or proxy rules, as applicable, when conducting redemptions in connection with our initial Business
Combination. Despite our compliance with these rules, if a shareholder fails to receive our tender offer or proxy materials, as applicable,
such shareholder may not become aware of the opportunity to redeem its shares. In addition, the tender offer documents or proxy materials,
as applicable, that we will furnish to holders of our Public Shares in connection with our initial Business Combination will describe
the various procedures that must be complied with in order to validly tender or redeem Public Shares. In the event that a shareholder
fails to comply with these procedures, its shares may not be redeemed.
You
are not entitled to certain protections afforded to investors of some other blank check companies.
We
are exempt from certain rules promulgated by the SEC related to certain blank check companies, such as Rule 419. Accordingly, investors
are not afforded the benefits or protections of those rules. Among other things, this means we will have a longer period of time to complete
our initial Business Combination than do companies subject to Rule 419. Moreover, if the Initial Public Offering was subject to Rule 419,
that rule would prohibit the release of any interest earned on funds held in the Trust Account to us unless and until the funds in the
Trust Account were released to us in connection with our completion of an initial Business Combination.
If
we seek shareholder approval of our initial Business Combination and we do not conduct redemptions pursuant to the tender offer rules,
and if you or a “group” of shareholders are deemed to hold in excess of 15% of our Class A ordinary shares, you will
lose the ability to redeem all such shares in excess of 15% of our Class A ordinary shares.
If
we seek shareholder approval of our initial Business Combination and we do not conduct redemptions in connection with our initial Business
Combination pursuant to the tender offer rules, our amended and restated memorandum and articles of association provide that a Public
Shareholder, together with any affiliate of such shareholder or any other person with whom such shareholder is acting in concert or as
a “group” (as defined under Section 13 of the Exchange Act), will be restricted from redeeming its shares with respect
to more than an aggregate of 15% of the shares sold in the Initial Public Offering, which we refer to as the “Excess Shares,”
without our prior consent. However, we would not be restricting our shareholders’ ability to vote all of their shares (including
Excess Shares) for or against our initial Business Combination. Your inability to redeem the Excess Shares will reduce your influence
over our ability to complete our initial Business Combination and you could suffer a material loss on your investment in us if you sell
Excess Shares in open market transactions. Additionally, you will not receive redemption distributions with respect to the Excess Shares
if we complete our initial Business Combination. And as a result, you will continue to hold that number of shares exceeding 15% and,
in order to dispose of such shares, would be required to sell your shares in open market transactions, potentially at a loss.
Because
of our limited resources and the significant competition for Business Combination opportunities, it may be more difficult for us to complete
our initial Business Combination. If we have not completed our initial Business Combination within the required time period, our Public
Shareholders may receive only approximately $10.20 per share, or less in certain circumstances, on our redemption of their shares, and
our warrants will expire worthless.
We
expect to encounter intense competition from other entities having a business objective similar to ours, including private investors
(which may be individuals or investment partnerships), other blank check companies and other entities, domestic and international, competing
for the types of businesses we intend to acquire. Many of these individuals and entities are well established and have extensive experience
in identifying and effecting, directly or indirectly, acquisitions of companies operating in or providing services to various industries.
Many of these competitors possess greater technical, human and other resources or more local industry knowledge than we do and our financial
resources will be relatively limited when contrasted with those of many of these competitors. Additionally, the number of blank check
companies looking for Business Combination targets has increased compared to recent years and many of these blank check companies are
sponsored by entities or persons that have significant experience with completing Business Combinations. While we believe there are numerous
target businesses we could potentially acquire with the net proceeds of the Initial Public Offering and the sale of the Private Placement
Warrants, our ability to compete with respect to the acquisition of certain target businesses that are sizable will be limited by our
available financial resources. This inherent competitive limitation gives others an advantage in pursuing the acquisition of certain
target businesses. Furthermore, in the event we seek shareholder approval of our initial Business Combination and we are obligated to
pay cash for our Class A ordinary shares, it will potentially reduce the resources available to us for our initial Business Combination.
Any of these obligations may place us at a competitive disadvantage in successfully negotiating a Business Combination. If we have not
completed our initial Business Combination within the required time period, our Public Shareholders may receive only approximately $10.20
per share, or less in certain circumstances, on the liquidation of our Trust Account and our warrants will expire worthless. See “Risk
Factors - If third parties bring claims against us, the proceeds held in the Trust Account could be reduced and the per-share redemption
amount received by shareholders may be less than $10.20 per share” and other risk factors herein.
As
the number of special purpose acquisition companies increases, there may be more competition to find an attractive target for an initial
Business Combination. This could increase the costs associated with completing our initial Business Combination and may result in our
inability to find a suitable target for our initial Business Combination and/or complete our initial Business Combination.
In
recent years, the number of special purpose acquisition companies that have been formed has increased substantially. Many companies have
entered into Business Combinations with special purpose acquisition companies, and there are still many special purpose acquisition companies
seeking targets for their initial Business Combination, as well as many additional special purpose acquisition companies currently in
registration. As a result, at times, fewer attractive targets may be available, and it may require more time, effort and resources to
identify a suitable target for an initial Business Combination and/or complete our initial Business Combination.
In
addition, because there are more special purpose acquisition companies seeking to enter into an initial Business Combination with available
targets, the competition for available targets with attractive fundamentals or business models may increase, which could cause target
companies to demand improved financial terms. Attractive deals could also become scarcer for other reasons, such as economic or industry
sector downturns, geopolitical tensions or increases in the cost of additional capital needed to close Business Combinations or operate
targets post-Business Combination. This could increase the cost of, delay or otherwise complicate or frustrate our ability to find a
suitable target for and/or complete our initial Business Combination.
If
the funds not being held in the Trust Account are insufficient to allow us to operate for at least the 18 months (or up to 24 months
if our Sponsor exercises its extension options) following the closing of the Initial Public Offering, we may be unable to complete our
initial Business Combination.
The
funds available to us outside of the Trust Account may not be sufficient to allow us to operate for at least the 18 months (or up
to 24 months if our Sponsor exercises its extension options) following the closing of the Initial Public Offering, assuming that
our initial Business Combination is not completed during that time. We have incurred and expect to continue to incur significant costs
in pursuit of our acquisition plans. Management’s plans to address this need for capital through potential loans from certain of
our affiliates are discussed in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.”
However, our affiliates are not obligated to make loans to us in the future, and we may not be able to raise additional financing from
unaffiliated parties necessary to fund our expenses. Any such event in the future may negatively impact the analysis regarding our ability
to continue as a going concern at such time.
Of
the funds available to us, we could use a portion of the funds to pay fees to consultants to assist us with our search for a target business.
We could also use a portion of the funds as a down payment or to fund a “no-shop” provision (a provision in letters of intent
or merger agreements designed to keep target businesses from “shopping” around for transactions with other companies or investors
on terms more favorable to such target businesses) with respect to a particular proposed Business Combination, although we do not have
any current intention to do so. If we enter into a letter of intent or merger agreement where we paid for the right to receive exclusivity
from a target business and were subsequently required to forfeit such funds (whether as a result of our breach or otherwise), we might
not have sufficient funds to continue searching for, or conduct due diligence with respect to, a target business. If we have not completed
our initial Business Combination within the required time period, our Public Shareholders may receive only approximately $10.20 per share,
or less in certain circumstances, on the liquidation of our Trust Account and our warrants will expire worthless. See “Risk Factors
- If third parties bring claims against us, the proceeds held in the Trust Account could be reduced and the per-share redemption
amount received by shareholders may be less than $10.20 per share” and other risk factors herein.
Changes
in the market for directors and officers liability insurance could make it more difficult and more expensive for us to negotiate and
complete an initial Business Combination.
Recently,
the market for directors and officers liability insurance for special purpose acquisition companies has changed in ways adverse to us
and our team. Fewer insurance companies are offering quotes for directors and officers liability coverage, the premiums charged for such
policies have generally increased and the terms of such policies have generally become less favorable. These trends may continue into
the future.
The
increased cost and decreased availability of directors and officers liability insurance could make it more difficult and more expensive
for us to negotiate and complete an initial Business Combination. In order to obtain directors and officers liability insurance or modify
its coverage as a result of becoming a public company, the post-Business Combination entity might need to incur greater expense and/or
accept less favorable terms. Furthermore, any failure to obtain adequate directors and officers liability insurance could have an adverse
impact on the post-Business Combination’s ability to attract and retain qualified officers and directors.
In
addition, after completion of any initial Business Combination, our directors and officers could be subject to potential liability from
claims arising from conduct alleged to have occurred prior to such initial Business Combination. As a result, in order to protect our
directors and officers, the post-Business Combination entity may need to purchase additional insurance with respect to any such claims
(“run-off insurance”). The need for run-off insurance would be an added expense for the post-Business Combination
entity and could interfere with or frustrate our ability to consummate an initial Business Combination on terms favorable to our investors.
If
third parties bring claims against us, the proceeds held in the Trust Account could be reduced and the per-share redemption amount received
by shareholders may be less than $10.20 per share.
Our
placing of funds in the Trust Account may not protect those funds from third-party claims against us. Although we will seek to have
all vendors, service providers (other than our independent registered public accounting firm), prospective target businesses and other
entities with which we do business execute agreements with us waiving any right, title, interest or claim of any kind in or to any monies
held in the Trust Account for the benefit of our Public Shareholders, such parties may not execute such agreements, or even if they execute
such agreements they may not be prevented from bringing claims against the Trust Account, including, but not limited to, fraudulent inducement,
breach of fiduciary responsibility or other similar claims, as well as claims challenging the enforceability of the waiver, in each case
in order to gain advantage with respect to a claim against our assets, including the funds held in the Trust Account. If any third party
refuses to execute an agreement waiving such claims to the monies held in the Trust Account, our management will perform an analysis
of the alternatives available to it and will enter into an agreement with a third party that has not executed a waiver only if management
believes that such third party’s engagement would be significantly more beneficial to us than any alternative.
Examples
of possible instances where we may engage a third party that refuses to execute a waiver include the engagement of a third-party consultant
whose particular expertise or skills are believed by management to be significantly superior to those of other consultants that would
agree to execute a waiver or in cases where we are unable to find a service provider willing to execute a waiver. In addition, there
is no guarantee that such entities will agree to waive any claims they may have in the future as a result of, or arising out of, any
negotiations, contracts or agreements with us and will not seek recourse against the Trust Account for any reason. Upon redemption of
our Public Shares, if we have not completed our initial Business Combination within the required time period, or upon the exercise of
a redemption right in connection with our initial Business Combination, we will be required to provide for payment of claims of creditors
that were not waived that may be brought against us within the 10 years following redemption. Accordingly, the per-share redemption
amount received by Public Shareholders could be less than the $10.20 per Public Share initially held in the Trust Account, due to claims
of such creditors.
Our
Sponsor has agreed that it will be liable to us if and to the extent any claims by a third party (other than our independent registered
public accounting firm) for services rendered or products sold to us, or a prospective target business with which we have discussed entering
into a transaction agreement, reduce the amount of funds in the Trust Account to below (1) $10.20 per Public Share or (2) such
lesser amount per Public Share held in the Trust Account as of the date of the liquidation of the Trust Account due to reductions in
the value of the trust assets, in each case net of interest which may be withdrawn to pay taxes, except as to any claims by a third party
who executed a waiver of any and all rights to seek access to the Trust Account and except as to any claims under our indemnity of the
underwriters of the Initial Public Offering against certain liabilities, including liabilities under the Securities Act. Moreover, in
the event that an executed waiver is deemed to be unenforceable against a third party, our Sponsor will not be responsible to the extent
of any liability for such third-party claims. We have not independently verified whether our Sponsor has sufficient funds to satisfy
its indemnity obligations and believe that our Sponsor’s only assets are securities of our Company. Our Sponsor may not have sufficient
funds available to satisfy those obligations. We have not asked our Sponsor to reserve for such obligations, and therefore, no funds
are currently set aside to cover any such obligations. As a result, if any such claims were successfully made against the Trust Account,
the funds available for our initial Business Combination and redemptions could be reduced to less than $10.20 per Public Share. In such
event, we may not be able to complete our initial Business Combination, and you would receive such lesser amount per share in connection
with any redemption of your Public Shares. None of our directors or officers will indemnify us for claims by third parties including,
without limitation, claims by vendors and prospective target businesses.
Our
directors may decide not to enforce the indemnification obligations of our Sponsor, resulting in a reduction in the amount of funds in
the Trust Account available for distribution to our Public Shareholders.
In
the event that the proceeds in the Trust Account are reduced below the lesser of (1) $10.20 per Public Share or (2) such lesser
amount per Public Share held in the Trust Account as of the date of the liquidation of the Trust Account due to reductions in the value
of the trust assets, in each case net of interest which may be withdrawn to pay taxes, and our Sponsor asserts that it is unable to satisfy
its obligations or that it has no indemnification obligations related to a particular claim, our independent directors would determine
whether to take legal action against our Sponsor to enforce its indemnification obligations. While we currently expect that our independent
directors would take legal action on our behalf against our Sponsor to enforce its indemnification obligations to us, it is possible
that our independent directors in exercising their business judgment may choose not to do so in any particular instance. If our independent
directors choose not to enforce these indemnification obligations, the amount of funds in the Trust Account available for distribution
to our Public Shareholders may be reduced below $10.20 per share.
The
securities in which we invest the funds held in the Trust Account could bear a negative rate of interest, which could reduce the value
of the assets held in trust such that the per-share redemption amount received by Public Shareholders may be less than $10.20 per share.
The
proceeds held in the Trust Account will be invested only in U.S. government treasury obligations with a maturity of 185 days or
less or in money market funds meeting certain conditions under Rule 2a-7 under the Investment Company Act, which invest only
in direct U.S. government treasury obligations. While short-term U.S. government treasury obligations currently yield a positive
rate of interest, they have briefly yielded negative interest rates in recent years. Central banks in Europe and Japan pursued interest
rates below zero in recent years, and the Open Market Committee of the Federal Reserve has not ruled out the possibility that it may
in the future adopt similar policies in the United States. In the event that we are unable to complete our initial Business Combination
or make certain amendments to our amended and restated memorandum and articles of association, our Public Shareholders are entitled to
receive their pro rata share of the proceeds held in the Trust Account, plus any interest income, net of taxes paid
or payable (less, in the case we are unable to complete our initial Business Combination, $100,000 of interest). Negative interest rates
could reduce the value of the assets held in trust such that the per-share redemption amount received by Public Shareholders may
be less than $10.20 per share. Negative interest rates could also reduce the amount of funds we have available to complete our initial
Business Combination.
If,
after we distribute the proceeds in the Trust Account to our Public Shareholders, we file a winding-up or bankruptcy or insolvency petition
or an involuntary winding-up or bankruptcy or insolvency petition is filed against us that is not dismissed, a bankruptcy court may seek
to recover such proceeds, and the members of our board of directors may be viewed as having breached their fiduciary duties to our creditors,
thereby exposing the members of our board of directors and us to claims of punitive damages.
If,
after we distribute the proceeds in the Trust Account to our Public Shareholders, we file a winding-up or bankruptcy or insolvency
petition or an involuntary winding-up or bankruptcy or insolvency petition is filed against us that is not dismissed, any distributions
received by shareholders could be viewed under applicable debtor/creditor and/or insolvency laws as a voidable performance. As a result,
a liquidator could seek to recover some or all amounts received by our shareholders. In addition, our board of directors may be viewed
as having breached its fiduciary duty to our creditors and/or having acted in bad faith by paying Public Shareholders from the Trust
Account prior to addressing the claims of creditors, thereby exposing itself and us to claims of punitive damages.
If,
before distributing the proceeds in the Trust Account to our Public Shareholders, we file a winding-up or bankruptcy or insolvency petition
or an involuntary winding-up or bankruptcy or insolvency petition is filed against us that is not dismissed, the claims of creditors
in such proceeding may have priority over the claims of our shareholders and the per-share amount that would otherwise be received by
our shareholders in connection with our liquidation may be reduced.
If,
before distributing the proceeds in the Trust Account to our Public Shareholders, we file a winding-up or bankruptcy or insolvency
petition or an involuntary winding-up or bankruptcy or insolvency petition is filed against us that is not dismissed, the proceeds
held in the Trust Account could be subject to applicable insolvency law, and may be included in our liquidation estate and subject to
the claims of third parties with priority over the claims of our shareholders. To the extent any liquidation claims deplete the Trust
Account, the per-share amount that would otherwise be received by our shareholders in connection with our liquidation would be reduced.
If
we are deemed to be an investment company under the Investment Company Act, we may be required to institute burdensome compliance requirements
and our activities may be restricted, which may make it difficult for us to complete our initial Business Combination.
If
we are deemed to be an investment company under the Investment Company Act, our activities may be restricted, including:
● restrictions on the nature
of our investments; and
● restrictions on the issuance
of securities;
each
of which may make it difficult for us to complete our initial Business Combination.
In
addition, we may have imposed upon us burdensome requirements, including:
● registration as an investment
company with the SEC;
● adoption of a specific
form of corporate structure; and
● reporting, record keeping,
voting, proxy and disclosure requirements and other rules and regulations that we are currently not subject to.
We
do not believe that our anticipated principal activities will subject us to the Investment Company Act. The proceeds held in the Trust
Account may be invested by the trustee only in U.S. government treasury bills with a maturity of 185 days or less or in money market
funds investing solely in U.S. Treasuries and meeting certain conditions under Rule 2a-7 under the Investment Company Act.
Because the investment of the proceeds will be restricted to these instruments, we believe we will meet the requirements for the exemption
provided in Rule 3a-1 promulgated under the Investment Company Act. If we were deemed to be subject to the Investment Company
Act, compliance with these additional regulatory burdens would require additional expenses for which we have not allotted funds and may
hinder our ability to complete a Business Combination. If we have not completed our initial Business Combination within the required
time period, our Public Shareholders may receive only approximately $10.20 per share, or less in certain circumstances, on the liquidation
of our Trust Account and our warrants will expire worthless.
Changes
in laws or regulations, or how such laws or regulations are interpreted or applied, or a failure to comply with any laws or regulations,
may adversely affect our business, including our ability to negotiate and complete our initial Business Combination, and results of operations.
We
are and will be subject to laws and regulations enacted by national, regional and local governments. In particular, we are required to
comply with certain SEC and other legal requirements, our Business Combination may be contingent on our ability to comply with certain
laws and regulations and any post-Business Combination company may be subject to additional laws and regulations. Compliance with, and
monitoring of, applicable laws and regulations may be difficult, time consuming and costly. Those laws and regulations and their interpretation
and application may also change from time to time, including as a result of changes in economic, political, social and government policies,
and those changes could have a material adverse effect on our business, including our ability to negotiate and complete our initial Business
Combination, and results of operations. In addition, a failure to comply with applicable laws or regulations, as interpreted and applied,
could have a material adverse effect on our business, including our ability to negotiate and complete our initial Business Combination,
and results of operations.
If
we have not completed our initial Business Combination within 18 months (or up to 24 months if our Sponsor exercises its extension options)
of the closing of the Initial Public Offering, our Public Shareholders may be forced to wait beyond such 18 months (or up to 24 months
if our Sponsor exercises its extension options) before redemption from our Trust Account.
If
we have not completed our initial Business Combination within 18 months (or up to 24 months if our Sponsor exercises its extension
options) from the closing of the Initial Public Offering, we will distribute the aggregate amount then on deposit in the Trust Account,
including interest (less up to $100,000 of interest to pay dissolution expenses and which interest shall be net of taxes payable), pro
rata to our Public Shareholders by way of redemption and cease all operations except for the purposes of winding up of our affairs, as
further described herein. Any redemption of Public Shareholders from the Trust Account shall be effected automatically by function of
our amended and restated memorandum and articles of association prior to any voluntary winding up. If we are required to wind up, liquidate
the Trust Account and distribute such amount therein, pro rata, to our Public Shareholders, as part of any liquidation process, such
winding up, liquidation and distribution must comply with the applicable provisions of the Companies Act. In that case, investors may
be forced to wait beyond the initial 18 months (or up to 24 months if our Sponsor exercises its extension options) before the
redemption proceeds of our Trust Account become available to them and they receive the return of their pro rata portion of the proceeds
from our Trust Account. We have no obligation to return funds to investors prior to the date of our redemption or liquidation unless,
prior thereto, we consummate our initial Business Combination or amend certain provisions of our amended and restated memorandum and
articles of association and then only in cases where investors have properly sought to redeem their Class A ordinary shares. Only
upon our redemption or any liquidation will Public Shareholders be entitled to distributions if we have not completed our initial Business
Combination within the required time period and do not amend certain provisions of our amended and restated memorandum and articles of
association prior thereto.
Our
shareholders may be held liable for claims by third parties against us to the extent of distributions received by them upon redemption
of their shares.
If
we are forced to enter into an insolvent liquidation, any distributions received by shareholders could be viewed as an unlawful payment
if it was proved that immediately following the date on which the distribution was made, we were unable to pay our debts as they fall
due in the ordinary course of business. As a result, a liquidator could seek to recover some or all amounts received by our shareholders.
Furthermore, our directors may be viewed as having breached their fiduciary duties to us or our creditors and/or may have acted in bad
faith, and thereby exposing themselves and our Company to claims, by paying Public Shareholders from the Trust Account prior to addressing
the claims of creditors. We cannot assure you that claims will not be brought against us for these reasons. We and our directors and
officers who knowingly and willfully authorized or permitted any distribution to be paid out of our share premium account while we were
unable to pay our debts as they fall due in the ordinary course of business would be guilty of an offense and may be liable for a fine
of up to approximately $18,300 and to imprisonment for up to five years in the Cayman Islands.
We
may not hold an annual general meeting until after the consummation of our initial Business Combination. Our Public Shareholders will
not have the right to elect or remove directors prior to the consummation of our initial Business Combination.
In
accordance with Nasdaq corporate governance requirements, we are not required to hold an annual general meeting until one year after
our first fiscal year end following our listing on Nasdaq. There is no requirement under the Companies Act for us to hold annual or extraordinary
general meetings to appoint directors. Until we hold an annual general meeting, Public Shareholders may not be afforded the opportunity
to discuss Company affairs with management. In addition, as holders of our Class A ordinary shares, our Public Shareholders will
not have the right to vote on the appointment of directors prior to consummation of our initial Business Combination. In addition, holders
of a majority of our Founder Shares may remove a member of our board of directors for any reason.
The
grant of registration rights to our initial shareholders and their permitted transferees may make it more difficult to complete our initial
Business Combination, and the future exercise of such rights may adversely affect the market price of our Class A ordinary shares.
At
or after the time of our initial Business Combination, our initial shareholders and their permitted transferees can demand that we register
the resale of their Founder Shares after those shares convert to our Class A ordinary shares. In addition, our Sponsor and its permitted
transferees can demand that we register the resale of the Private Placement Warrants and the Class A ordinary shares issuable upon
exercise of the Private Placement Warrants, and holders of warrants that may be issued upon conversion of working capital loans may demand
that we register the resale of such warrants or the Class A ordinary shares issuable upon exercise of such warrants. We will bear
the cost of registering these securities. The registration and availability of such a significant number of securities for trading in
the public market may have an adverse effect on the market price of our Class A ordinary shares. In addition, the existence of the
registration rights may make our initial Business Combination more costly or difficult to conclude. This is because the shareholders
of the target business may increase the equity stake they seek in the combined entity or ask for more cash consideration to offset the
negative impact on the market price of our Class A ordinary shares that is expected when the ordinary shares owned by our initial
shareholders or their permitted transferees, our Private Placement Warrants or warrants issued in connection with working capital loans
are registered for resale.
Because
we are not limited to a particular industry or any specific target businesses with which to pursue our initial Business Combination,
you will be unable to ascertain the merits or risks of any particular target business’s operations.
We
may seek to complete a Business Combination with an operating company of any size (subject to our satisfaction of the 80% of fair market
value test) and in any industry, sector or geography. However, we will not, under our amended and restated memorandum and articles of
association, be permitted to effectuate our initial Business Combination solely with another blank check company or similar company with
nominal operations. Because we have not yet selected or approached any specific target business with respect to a Business Combination,
there is no basis to evaluate the possible merits or risks of any particular target business’s operations, results of operations,
cash flows, liquidity, financial condition or prospects. To the extent we complete our initial Business Combination, we may be affected
by numerous risks inherent in the business operations with which we combine. For example, if we combine with a financially unstable business
or an entity lacking an established record of sales or earnings, we may be affected by the risks inherent in the business and operations
of a financially unstable or development stage entity. Although our directors and officers will endeavor to evaluate the risks inherent
in a particular target business, we cannot assure you that we will properly ascertain or assess all of the significant risk factors or
that we will have adequate time to complete due diligence. Furthermore, some of these risks may be outside of our control and leave us
with no ability to control or reduce the chances that those risks will adversely impact a target business. We also cannot assure you
that an investment in our securities will not ultimately prove to be less favorable to our investors than a direct investment, if such
opportunity were available, in a Business Combination target. Accordingly, any shareholder or warrant holder who chooses to remain a
shareholder or warrant holder, respectively, following our initial Business Combination could suffer a reduction in the value of their
securities. Such shareholders and warrant holders are unlikely to have a remedy for such reduction in value.
We
may seek acquisition opportunities in industries or sectors which may be outside of our management’s area of expertise.
We
will consider a Business Combination in industries or sectors outside of our management’s area of expertise if a Business Combination
candidate is presented to us and we determine that such candidate offers an attractive acquisition opportunity for our Company. Although
our management will endeavor to evaluate the risks inherent in any particular Business Combination target, we cannot assure you that
we will adequately ascertain or assess all of the significant risk factors. We also cannot assure you that an investment in our securities
will not ultimately prove to be less favorable to investors than a direct investment, if an opportunity were available, in a Business
Combination target. In the event we elect to pursue an acquisition outside of the areas of our management’s expertise, our management’s
expertise may not be directly applicable to its evaluation or operation, and our management’s expertise would not be relevant to
an understanding of the business that we elect to acquire. As a result, our management may not be able to adequately ascertain or assess
all of the significant risk factors relevant to such acquisition. Accordingly, any shareholder or warrant holder who chooses to remain
a shareholder or warrant holder, respectively, following our initial Business Combination could suffer a reduction in the value of their
securities. Such shareholders and warrant holders are unlikely to have a remedy for such reduction in value.
Any
due diligence in connection with an initial Business Combination may not reveal all relevant considerations or liabilities of a target
business, which could have a material adverse effect on our business, financial condition, results of operations and prospects.
The
due diligence undertaken with respect to a potential initial Business Combination may not reveal all relevant facts that may be necessary
to evaluate such transaction or to formulate a business strategy. Furthermore, the information provided during due diligence may not
be adequate or accurate. As part of the due diligence process, we will also make subjective judgments regarding the results of operations,
financial condition and prospects of a potential initial Business Combination, and these judgments may be inaccurate.
Due
diligence conducted in connection with an initial Business Combination may not result in the initial Business Combination being successful.
If the due diligence investigation fails to identify material information regarding an opportunity, or if we consider such material risks
to be commercially acceptable relative to the opportunity, and we proceed with an initial Business Combination, the Company may subsequently
incur substantial impairment charges or other losses. In addition, following an initial Business Combination, we may be subject to significant,
previously undisclosed liabilities of the acquired business that were not identified during due diligence and which could have a material
adverse effect on our business, financial condition, results of operations and prospects.
Although
we have identified general criteria and guidelines that we believe are important in evaluating prospective target businesses, we may
enter into our initial Business Combination with a target that does not meet such criteria and guidelines, and as a result, the target
business with which we enter into our initial Business Combination may not have attributes entirely consistent with our general criteria
and guidelines.
Although
we have identified general criteria and guidelines for evaluating prospective target businesses, it is possible that a target business
with which we enter into our initial Business Combination will not have all of these positive attributes. If we complete our initial
Business Combination with a target that does not meet some or all of these criteria and guidelines, such initial Business Combination
may not be as successful as a combination with a business that does meet all of our general criteria and guidelines. In addition, if
we announce a prospective Business Combination with a target that does not meet our general criteria and guidelines, a greater number
of shareholders may exercise their redemption rights, which may make it difficult for us to meet any closing condition with a target
business that requires us to have a minimum net worth or a certain amount of cash. In addition, if shareholder approval of the transaction
is required by applicable law or stock exchange listing requirements, or we decide to obtain shareholder approval for business or other
reasons, it may be more difficult for us to attain shareholder approval of our initial Business Combination if the target business does
not meet our general criteria and guidelines. If we have not completed our initial Business Combination within the required time period,
our Public Shareholders may receive only approximately $10.20 per share, or less in certain circumstances, on the liquidation of our
Trust Account and our warrants will expire worthless.
We
may seek acquisition opportunities with an early stage company, a financially unstable business or an entity lacking an established record
of revenue or earnings.
To
the extent we complete our initial Business Combination with an early stage company, a financially unstable business or an entity lacking
an established record of sales or earnings, we may be affected by numerous risks inherent in the operations of the business with which
we combine. These risks include investing in a business without a proven business model and with limited historical financial data, volatile
revenues or earnings, intense competition and difficulties in obtaining and retaining key personnel. Although our directors and officers
will endeavor to evaluate the risks inherent in a particular target business, we may not be able to properly ascertain or assess all
of the significant risk factors and we may not have adequate time to complete due diligence. Furthermore, some of these risks may be
outside of our control and leave us with no ability to control or reduce the chances that those risks will adversely impact a target
business.
Failure
to maintain our status as tax resident solely in the Cayman Islands could adversely affect our financial and operating results. Our intention
is that prior to our initial Business Combination we should be resident solely in the Cayman Islands.
Continued
attention must be paid to ensure that major decisions by the Company are not made from another jurisdiction, since this could cause us
to lose our status as tax resident solely in the Cayman Islands. The composition of the board of directors, the place of residence of
the individual members of the board of directors and the location(s) in which the board of directors makes decisions will all be important
factors in determining and maintaining our tax residence in the Cayman Islands. If we were to be considered as tax resident within another
jurisdiction, we may be subject to additional tax in that jurisdiction, which could negatively affect our financial and operating results,
and/or our shareholders’ or warrant holders’ investment returns could be subject to additional or increased taxes (including
withholding taxes).
We
may engage one or more of our underwriters or one of their respective affiliates to provide additional services to us, which may include
acting as M&A advisor in connection with an initial Business Combination or as placement agent in connection with a related financing
transaction. Our underwriters are entitled to receive deferred underwriting commissions that will be released from the Trust Account
only upon a completion of an initial Business Combination. These financial incentives may cause them to have potential conflicts of interest
in rendering any such additional services to us after the Initial Public Offering, including, for example, in connection with the sourcing
and consummation of an initial Business Combination.
We
may engage one or more of our underwriters from our Initial Public Offering or one of their respective affiliates to provide additional
services to us, including, for example, identifying potential targets, providing M&A advisory services, acting as a placement agent
in a private offering or arranging debt financing transactions. We may pay such underwriter or its affiliate fair and reasonable fees
or other compensation that would be determined at that time in an arm’s length negotiation. The underwriters are also entitled
to receive deferred underwriting commissions that are conditioned on the completion of an initial Business Combination. The underwriters’
or their respective affiliates’ financial interests tied to the consummation of a Business Combination transaction may give rise
to potential conflicts of interest in providing any such additional services to us, including potential conflicts of interest in connection
with the sourcing and consummation of an initial Business Combination.
We
are not required to obtain an opinion from an independent investment banking firm or from an independent accounting firm regarding fairness.
Consequently, you may have no assurance from an independent source that the price we are paying for the business is fair to our Company
from a financial point of view.
Unless
we complete our initial Business Combination with an affiliated entity, we are not required to obtain an opinion that the price we are
paying is fair to our Company from a financial point of view. If no opinion is obtained, our shareholders will be relying on the judgment
of our board of directors, who will determine fair market value based on standards generally accepted by the financial community. Such
standards used will be disclosed in our tender offer documents or proxy solicitation materials, as applicable, related to our initial
Business Combination.
We
may issue additional Class A ordinary shares or preference shares to complete our initial Business Combination or under an employee
incentive plan after completion of our initial Business Combination. We may also issue Class A ordinary shares upon the conversion
of the Class B ordinary shares at a ratio greater than one-to-one at the time of our initial Business Combination as a result of
the anti-dilution provisions contained in our amended and restated memorandum and articles of association. Any such issuances would dilute
the interest of our shareholders and likely present other risks.
Our
amended and restated memorandum and articles of association authorizes the issuance of up to 500,000,000 Class A ordinary shares,
par value $0.0001 per share, 50,000,000 Class B ordinary shares, par value $0.0001 per share, and 5,000,000 undesignated preference
shares, par value $0.0001 per share. As of December 31, 2021, there were 480,000,000 and 45,000,000 authorized but unissued Class A
ordinary shares and Class B ordinary shares, respectively, available for issuance, which amount takes into account shares reserved
for issuance upon exercise of outstanding warrants but not upon conversion of the Class B ordinary shares. Class B ordinary
shares are convertible into Class A ordinary shares, initially at a one-for-one ratio but subject to adjustment as set forth
herein. As of December 31, 2021, there were no preference shares issued and outstanding.
We
may issue a substantial number of additional Class A ordinary shares, and may issue preference shares, in order to complete our
initial Business Combination or under an employee incentive plan after completion of our initial Business Combination. We may also issue
Class A ordinary shares to redeem the warrants or upon conversion of the Class B ordinary shares at a ratio greater than one-to-one at
the time of our initial Business Combination as a result of the anti-dilution provisions contained in our amended and restated memorandum
and articles of association. However, our amended and restated memorandum and articles of association provide, among other things, that
prior to our initial Business Combination, we may not issue additional ordinary shares that would entitle the holders thereof to (1) receive
funds from the Trust Account or (2) vote as a class with our Public Shares on any initial Business Combination. The issuance of
additional ordinary shares or preference shares:
● may significantly dilute
the equity interest of Public Shareholders, which dilution would increase if the anti-dilution provisions in the Class B
ordinary shares resulted in the issuance of Class A ordinary shares on a greater than one-to-one basis upon conversion
of the Class B ordinary shares;
● may subordinate the rights
of holders of ordinary shares if preference shares are issued with rights senior to those afforded our ordinary shares;
● could cause a change of
control if a substantial number of our ordinary shares is issued, which may affect, among other things, our ability to use our net
operating loss carry forwards, if any, and could result in the resignation or removal of our present directors and officers;
● may have the effect of
delaying or preventing a change of control of us by diluting the share ownership or voting rights of a person seeking to obtain control
of us;
● may adversely affect prevailing
market prices for our Units, ordinary shares and/or warrants; and
● may not result in adjustment
to the exercise price of our warrants.
Our
initial Business Combination or reincorporation may result in taxes imposed on shareholders or warrant holders.
We
may, subject to requisite shareholder approval by special resolution under the Companies Act, effect a Business Combination with a target
company in another jurisdiction, reincorporate in the jurisdiction in which the target company or business is located, or reincorporate
in another jurisdiction. Such transactions may result in tax liability for a shareholder or warrant holder in the jurisdiction in which
the shareholder or warrant holder is a tax resident (or in which its members are resident if it is a tax transparent entity), in which
the target company is located, or in which we reincorporate. In the event of a reincorporation pursuant to our initial Business Combination,
such tax liability may attach prior to any consummation of redemptions. We do not intend to make any cash distributions to pay such taxes.
Shareholders or warrant holders may be subject to withholding taxes or other taxes with respect to their ownership of us after the reincorporation.
Resources
could be wasted in researching acquisitions that are not completed, which could materially adversely affect subsequent attempts to locate
and acquire or merge with another business. If we have not completed our initial Business Combination within the required time period,
our Public Shareholders may receive only approximately $10.20 per share, or less than such amount in certain circumstances, on the liquidation
of our Trust Account and our warrants will expire worthless.
We
anticipate that the investigation of each specific target business and the negotiation, drafting and execution of relevant agreements,
disclosure documents and other instruments will require substantial management time and attention and substantial costs for accountants,
attorneys and others. If we decide not to complete a specific initial Business Combination, the costs incurred up to that point for the
proposed transaction likely would not be recoverable. Furthermore, if we reach an agreement relating to a specific target business, we
may fail to complete our initial Business Combination for any number of reasons including those beyond our control. Any such event will
result in a loss to us of the related costs incurred which could materially adversely affect subsequent attempts to locate and acquire
or merge with another business. If we have not completed our initial Business Combination within the required time period, our Public
Shareholders may receive only approximately $10.20 per share, or less in certain circumstances, on the liquidation of our Trust Account
and our warrants will expire worthless.
We
may engage in a Business Combination with one or more target businesses that have relationships with entities that may be affiliated
with our Sponsor, directors or officers which may raise potential conflicts of interest.
In
light of the involvement of our Sponsor, directors and officers with other entities, we may decide to acquire one or more businesses
affiliated with our Sponsor, directors and officers. Certain of our directors and officers also serve as officers and board members for
other entities, including those described under “Item 10. Directors, Executive Officers and Corporate Governance - Conflicts
of Interest.” Such entities may compete with us for Business Combination opportunities. Although we will not be specifically focusing
on, or targeting, any transaction with any affiliated entities, we would pursue such a transaction if we determined that such affiliated
entity met our criteria and guidelines for a Business Combination and such transaction was approved by a majority of our independent
and disinterested directors. Despite our agreement that we, or a committee of independent and disinterested directors, will obtain an
opinion from an independent investment banking firm that is a member of FINRA or from an independent entity that commonly renders valuation
opinions regarding the fairness to our Company from a financial point of view of a Business Combination with one or more domestic or
international businesses affiliated with our Sponsor, directors or officers, potential conflicts of interest still may exist and, as
a result, the terms of the Business Combination may not be as advantageous to our Public Shareholders as they would be absent any conflicts
of interest.
Since
our initial shareholders will lose their entire investment in us if our initial Business Combination is not completed, a conflict of
interest may arise in determining whether a particular Business Combination target is appropriate for our initial Business Combination.
Our
Sponsor holds 5,000,000 Founder Shares as of the date of this Annual Report. The Founder Shares will be worthless if we do not complete
an initial Business Combination. In addition, our Sponsor purchased an aggregate of 10,000,000 Private Placement Warrants, each exercisable
for one Class A ordinary share, for a purchase price of $10,000,000 in the aggregate, or $1.00 per warrant, that will also be worthless
if we do not complete a Business Combination. Each Private Placement Warrant may be exercised for one Class A ordinary share at
a price of $11.50 per share, subject to adjustment.
The
Founder Shares are identical to the ordinary shares included in the Units except that: (1) prior to our initial Business Combination,
only holders of the Founder Shares have the right to vote on the appointment of directors and holders of a majority of our Founder Shares
may remove a member of our board of directors for any reason; (2) the Founder Shares are subject to certain transfer restrictions
contained in a letter agreement that our initial shareholders, directors and officers have entered into with us; (3) pursuant to
such letter agreement, our initial shareholders, directors and officers have agreed to waive: (i) their redemption rights with respect
to any Founder Shares and Public Shares held by them, as applicable, in connection with the completion of our initial Business Combination;
(ii) their redemption rights with respect to any Founder Shares and Public Shares held by them in connection with a shareholder
vote to amend our amended and restated memorandum and articles of association (A) to modify the substance or timing of our obligation
to allow redemption in connection with our initial Business Combination or to redeem 100% of our Public Shares if we do not complete
our initial Business Combination within 18 months (or up to 24 months if our Sponsor exercises its extension options) from
the closing of the Initial Public Offering or (B) with respect to any other provision relating to shareholders’ rights or
pre-initial Business Combination activity; and (iii) their rights to liquidating distributions from the Trust Account with
respect to any Founder Shares they hold if we fail to complete our initial Business Combination within 18 months (or up to 24 months
if our Sponsor exercises its extension options) from the closing of the Initial Public Offering (although they will be entitled to liquidating
distributions from the Trust Account with respect to any Public Shares they hold if we fail to complete our initial Business Combination
within the prescribed time frame); (4) the Founder Shares will automatically convert into our Class A ordinary shares at the time
of our initial Business Combination, or earlier at the option of the holder, on a one-for-one basis, subject to adjustment pursuant
to certain anti-dilution rights, as described in more detail below; and (5) the Founder Shares are entitled to registration
rights. If we submit our initial Business Combination to our Public Shareholders for a vote, our initial shareholders have agreed (and
their permitted transferees will agree), pursuant to the terms of a letter agreement entered into with us, to vote their Founder Shares
and any Public Shares held by them purchased during or after the Initial Public Offering in favor of our initial Business Combination.
The
personal and financial interests of our Sponsor, directors and officers may influence their motivation in identifying and selecting a
target Business Combination, completing an initial Business Combination and influencing the operation of the business following the initial
Business Combination. This risk may become more acute as the 18-month (or up to 24-month if our Sponsor exercises its extension
options) anniversary following the closing of the Initial Public Offering nears, which is the deadline for the completion of our initial
Business Combination. While we do not expect our board of directors to approve any amendment to or waiver of the letter agreement or
registration rights agreement prior to our initial Business Combination, it may be possible that our board of directors, in exercising
its business judgement and subject to its fiduciary duties, chooses to approve one or more amendments to or waivers of such agreements
in connection with the consummation of our initial Business Combination. Any such amendments or waivers would not require approval from
our shareholders, may result in the completion of our initial Business Combination that may not otherwise have been possible and may
have an adverse effect on the value of an investment in our securities.
We
may issue notes or other debt securities, or otherwise incur substantial debt, to complete a Business Combination, which may adversely
affect our leverage and financial condition and thus negatively impact the value of our shareholders’ investment in us.
We
may choose to incur substantial debt to complete our initial Business Combination. We have agreed that we will not incur any indebtedness
unless we have obtained from the lender a waiver of any right, title, interest or claim of any kind in or to the monies held in the Trust
Account. As such, no issuance of debt will affect the per-share amount available for redemption from the Trust Account. Nevertheless,
the incurrence of debt could have a variety of negative effects, including:
● default and foreclosure
on our assets if our operating revenues after an initial Business Combination are insufficient to repay our debt obligations;
● acceleration of our obligations
to repay the indebtedness even if we make all principal and interest payments when due if we breach certain covenants that require
the maintenance of certain financial ratios or reserves without a waiver or renegotiation of that covenant;
● our immediate payment of
all principal and accrued interest, if any, if the debt is payable on demand;
● our inability to obtain
necessary additional financing if the debt contains covenants restricting our ability to obtain such financing while the debt is
outstanding;
● our inability to pay dividends
on our ordinary shares;
● using a substantial portion
of our cash flow to pay principal and interest on our debt, which will reduce the funds available for dividends on our ordinary shares
if declared, expenses, capital expenditures, acquisitions and other general corporate purposes;
● limitations on our flexibility
in planning for and reacting to changes in our business and in the industry in which we operate;
● increased vulnerability
to adverse changes in general economic, industry and competitive conditions and adverse changes in government regulation; and
● limitations on our ability
to borrow additional amounts for expenses, capital expenditures, acquisitions, debt service requirements, execution of our strategy
and other purposes and other disadvantages compared to our competitors who have less debt.
We
may be able to complete only one Business Combination with the proceeds of the Initial Public Offering and the sale of the Private Placement
Warrants, which will cause us to be solely dependent on a single business which may have a limited number of products or services. This
lack of diversification may negatively impact our operations and profitability.
We
may effectuate our initial Business Combination with a single target business or multiple target businesses simultaneously or within
a short period of time. However, we may not be able to effectuate our initial Business Combination with more than one target business
because of various factors, including the existence of complex accounting issues and the requirement that we prepare and file pro forma
financial statements with the SEC that present operating results and the financial condition of several target businesses as if they
had been operated on a combined basis. By completing our initial Business Combination with only a single entity our lack of diversification
may subject us to numerous financial, economic, competitive and regulatory risks. Further, we would not be able to diversify our operations
or benefit from the possible spreading of risks or offsetting of losses, unlike other entities which may have the resources to complete
several Business Combinations in different industries or different areas of a single industry. Accordingly, the prospects for our success
may be:
● solely dependent upon the
performance of a single business, property or asset; or
● dependent upon the development
or market acceptance of a single or limited number of products, processes or services.
This
lack of diversification may subject us to numerous financial, economic, competitive and regulatory risks, any or all of which may have
a substantial adverse impact upon the particular industry in which we may operate subsequent to our initial Business Combination.
We
may attempt to simultaneously complete Business Combinations with multiple prospective targets, which may hinder our ability to complete
our initial Business Combination and give rise to increased costs and risks that could negatively impact our operations and profitability.
If
we determine to simultaneously acquire several businesses that are owned by different sellers, we will need for each of such sellers
to agree that our purchase of its business is contingent on the simultaneous closings of the other Business Combinations, which may make
it more difficult for us, and delay our ability, to complete our initial Business Combination. With multiple Business Combinations, we
could also face additional risks, including additional burdens and costs with respect to possible multiple negotiations and due diligence
investigations (if there are multiple sellers) and the additional risks associated with the subsequent assimilation of the operations
and services or products of the acquired companies in a single operating business. If we are unable to adequately address these risks,
it could negatively impact our profitability and results of operations.
We
may attempt to complete our initial Business Combination with a private company about which little information is available, which may
result in a Business Combination with a company that is not as profitable as we suspected, if at all.
In
pursuing our acquisition strategy, we may seek to effectuate our initial Business Combination with a privately held company. Very little
public information generally exists about private companies, and we could be required to make our decision on whether to pursue a potential
initial Business Combination on the basis of limited information, which may result in a Business Combination with a company that is not
as profitable as we suspected, if at all.
We
do not have a specified maximum redemption threshold. The absence of such a redemption threshold may make it possible for us to complete
a Business Combination with which a substantial majority of our shareholders do not agree.
Our
amended and restated memorandum and articles of association do not provide a specified maximum redemption threshold, except that in no
event will we redeem our Public Shares in an amount that would cause our net tangible assets to be less than $5,000,001 following such
redemptions, or any greater net tangible asset or cash requirement that may be contained in the agreement relating to our initial Business
Combination. As a result, we may be able to complete our initial Business Combination even though a substantial majority of our Public
Shareholders do not agree with the transaction and have redeemed their shares or, if we seek shareholder approval of our initial Business
Combination and do not conduct redemptions in connection with our initial Business Combination pursuant to the tender offer rules, have
entered into privately negotiated agreements to sell their shares to our Sponsor, directors, officers, advisors or any of their affiliates.
In the event the aggregate cash consideration we would be required to pay for all Public Shares that are validly submitted for redemption plus any
amount required to satisfy cash conditions pursuant to the terms of the proposed Business Combination exceed the aggregate amount of
cash available to us, we will not complete the Business Combination or redeem any shares, and all ordinary shares submitted for redemption
will be returned to the holders thereof, and we instead may search for an alternate Business Combination.
In
order to effectuate an initial Business Combination, blank check companies have, in the past, amended various provisions of their charters
and modified governing instruments, including their warrant agreements. We cannot assure you that we will not seek to amend our amended
and restated memorandum and articles of association or governing instruments in a manner that will make it easier for us to complete
our initial Business Combination that some of our shareholders may not support.
In
order to effectuate an initial Business Combination, blank check companies have, in the past, amended various provisions of their charters
and modified governing instruments, including their warrant agreements. For example, blank check companies have amended the definition
of Business Combination, increased redemption thresholds and extended the time to consummate an initial Business Combination and, with
respect to their warrants, amended their warrant agreements to require the warrants to be exchanged for cash and/or other securities.
Amending our amended and restated memorandum and articles of association requires at least a special resolution of our shareholders as
a matter of Cayman Islands law. A resolution is deemed to be a special resolution as a matter of Cayman Islands law where it has been
approved by either (1) holders of at least two-thirds (or any higher threshold specified in a company’s articles of association)
of a company’s ordinary shares at a general meeting for which notice specifying the intention to propose the resolution as a special
resolution has been given or (2) if so authorized by a company’s articles of association, by a unanimous written resolution
of all of the company’s shareholders. Our amended and restated memorandum and articles of association provide that special resolutions
must be approved either by holders of at least two-thirds of our ordinary shares who attend and vote at a general meeting (i.e.,
the lowest threshold permissible under Cayman Islands law) (other than amendments relating to provisions governing the appointment or
removal of directors prior to our initial Business Combination, which require the approval of the holders of a majority of at least 90%
of our ordinary shares attending and voting in a general meeting), or by a unanimous written resolution of all of our shareholders. The
warrant agreement provides that the terms of the warrants may be amended without the consent of any holder to cure any ambiguity or correct
any defective provision, but requires the approval by the holders of at least 50% of the then issued and outstanding public warrants
to make any change that adversely affects the interests of the registered holders of public warrants. We cannot assure you that we will
not seek to amend our amended and restated memorandum and articles of association or governing instruments, including the warrant agreement,
or extend the time to consummate an initial Business Combination in order to effectuate our initial Business Combination. To the extent
any of such amendments would be deemed to fundamentally change the nature of any of the securities offered through this registration
statement, we would register, or seek an exemption from registration for, the affected securities.
Certain
provisions of our amended and restated memorandum and articles of association that relate to our pre-Business Combination activity (and
corresponding provisions of the agreement governing the release of funds from our Trust Account) may be amended with the approval of
holders of at least two-thirds of our ordinary shares who attend and vote at a general meeting, which is a lower amendment threshold
than that of some other blank check companies.. It may be easier for us, therefore, to amend our amended and restated memorandum and
articles of association and the trust agreement to facilitate the completion of an initial Business Combination that some of our shareholders
may not support.
Our
amended and restated memorandum and articles of association provide that any of its provisions, including those related to pre-Business
Combination activity (including the requirement to deposit proceeds of the Initial Public Offering and the sale of Private Placement
Warrants into the Trust Account and not release such amounts except in specified circumstances), may be amended if approved by holders
of at least two-thirds of our ordinary shares who attend and vote in a general meeting, and corresponding provisions of the trust
agreement governing the release of funds from our Trust Account may be amended if approved by holders of 65% of our ordinary shares (other
than amendments relating to provisions governing the appointment or removal of directors prior to our initial Business Combination, which
require the approval of the holders of a majority of at least 90% of our ordinary shares attending and voting in a general meeting).
Our initial shareholders, who will collectively beneficially own 20% of our ordinary shares, may participate in any vote to amend our
amended and restated memorandum and articles of association and/or trust agreement and will have the discretion to vote in any manner
they choose. As a result, we may be able to amend the provisions of our amended and restated memorandum and articles of association which
govern our pre-Business Combination behavior more easily than some other blank check companies, and this may increase our ability to
complete our initial Business Combination with which you do not agree. In certain circumstances, our shareholders may pursue remedies
against us for any breach of our amended and restated memorandum and articles of association.
We
may be unable to obtain additional financing to complete our initial Business Combination or to fund the operations and growth of a target
business, which could compel us to restructure or abandon a particular Business Combination.
If
the net proceeds of the Initial Public Offering and the sale of the Private Placement Warrants available to us prove to be insufficient,
either because of the size of our initial Business Combination, the depletion of the available net proceeds in search of a target business,
the obligation to redeem for cash a significant number of shares from shareholders who elect redemption in connection with our initial
Business Combination or the terms of negotiated transactions to purchase shares in connection with our initial Business Combination,
we may be required to seek additional financing or to abandon the proposed Business Combination. We cannot assure you that such financing
will be available on acceptable terms, if at all. To the extent that additional financing proves to be unavailable when needed to complete
our initial Business Combination, we would be compelled to either restructure the transaction or abandon that particular Business Combination
and seek an alternative target business candidate.
In
addition, even if we do not need additional financing to complete our initial Business Combination, we may require such financing to
fund the operations or growth of the target business. The failure to secure additional financing could have a material adverse effect
on the continued development or growth of the target business. None of our directors, officers or shareholders is required to provide
any financing to us in connection with or after our initial Business Combination. If we have not completed our initial Business Combination
within the required time period, our Public Shareholders may receive only approximately $10.20 per share, or less in certain circumstances,
on the liquidation of our Trust Account, and our warrants will expire worthless.
Our
initial shareholders will control the appointment of our board of directors until consummation of our initial Business Combination and
will hold a substantial interest in us. As a result, they will appoint all of our directors prior to our initial Business Combination
and may exert a substantial influence on actions requiring shareholder vote, potentially in a manner that you do not support.
Our
initial shareholders own 20% of our issued and outstanding ordinary shares. In addition, prior to our initial Business Combination, holders
of the Founder Shares will have the right to appoint all of our directors and may remove members of our board of directors for any reason.
Holders of our Public Shares will have no right to vote on the appointment of directors during such time. These provisions of our amended
and restated memorandum and articles of association may only be amended by a special resolution passed by the holders of a majority of
at least 90% of our ordinary shares attending and voting in a general meeting. As a result, you will not have any influence over the
appointment of directors prior to our initial Business Combination.
In
addition, as a result of their substantial ownership in our Company, our initial shareholders may exert a substantial influence on other
actions requiring a shareholder vote, potentially in a manner that you do not support, including amendments to our amended and restated
memorandum and articles of association and approval of major corporate transactions. If our initial shareholders purchase any Class A
ordinary shares in the open market or in privately negotiated transactions, this would increase their influence over these actions.
Accordingly,
our initial shareholders will exert significant influence over actions requiring a shareholder vote at least until the completion of
our initial Business Combination.
A
provision of our warrant agreement may make it more difficult for us to consummate an initial Business Combination.
Unlike
some blank check companies, if
● we issue additional ordinary
shares or equity-linked securities for capital raising purposes in connection with the closing of our initial Business Combination
at an issue price or effective issue price of less than $9.20 per ordinary share (with such issue price or effective issue price
to be determined in good faith by our board of directors and, in the case of any such issuance to the Sponsor or its affiliates,
without taking into account any Founder Shares held by the Sponsor or such affiliates, as applicable, prior to such issuance) (the
“Newly Issued Price”),
● the aggregate gross proceeds
from such issuances represent more than 60% of the total equity proceeds, and interest thereon, available for the funding of our
initial Business Combination on the date of the completion of our initial Business Combination (net of redemptions), and
● the volume weighted average
trading price of our Class A ordinary shares during the 20 trading day period starting on the trading day prior to the day on which
we consummate our initial Business Combination (such price, the “Market Value”) is below $9.20 per share,
then
the exercise price of the warrants will be adjusted to be equal to 115% of the higher of the Market Value and the Newly Issued Price,
and the $18.00 per share redemption trigger price applicable to our warrants will be adjusted (to the nearest cent) to be equal to 180%
of the higher of the Market Value and the Newly Issued Price, and the $10.00 per share redemption trigger price applicable to our warrants
will be adjusted (to the nearest cent) to be equal to the higher of the Market Value and the Newly Issued Price. This may make it more
difficult for us to consummate an initial Business Combination with a target business.
Our
warrants and Founder Shares may have an adverse effect on the market price of our Class A ordinary shares and make it more difficult
to effectuate our initial Business Combination.
We
have issued warrants to purchase 10,000,000 Class A ordinary shares, at a price of $11.50 per whole share (subject to adjustment),
as part of the Units and, simultaneously with the closing of the Initial Public Offering, we will be issuing in the Private Placement
an aggregate of 10,000,000 Private Placement Warrants, each exercisable to purchase one Class A ordinary share at a price of $11.50
per share, subject to adjustment. Our initial shareholders currently hold 5,000,000 Class B ordinary shares. The Class B ordinary
shares are convertible into Class A ordinary shares on a one-for-one basis, subject to adjustment as set forth herein. In addition,
if our Sponsor, an affiliate of our Sponsor or certain of our directors and officers make any working capital loans, up to $2,000,000
of such loans may be converted into warrants, at the price of $1.00 per warrant at the option of the lender. Such warrants would be identical
to the Private Placement Warrants. To the extent we issue Class A ordinary shares to effectuate a Business Combination, the potential
for the issuance of a substantial number of additional Class A ordinary shares upon exercise of these warrants or conversion rights
could make us a less attractive acquisition vehicle to a target business. Any such issuance will increase the number of issued and outstanding
Class A ordinary shares and reduce the value of the Class A ordinary shares issued to complete the Business Combination. Therefore,
our warrants and Founder Shares may make it more difficult to effectuate a Business Combination or increase the cost of acquiring the
target business.
The
Private Placement Warrants are identical to the warrants sold as part of the Units except that, so long as they are held by our Sponsor
or its permitted transferees: (1) the Private Placement Warrants will not be redeemable by us (except under certain limited exceptions);
(2) the Private Placement Warrants (and the Class A ordinary shares issuable upon exercise of the Private Placement Warrants)
may not, subject to certain limited exceptions, be transferred, assigned or sold by our Sponsor until 30 days after the completion of
our initial Business Combination; (3) the Private Placement Warrants may be exercised by the holders on a cashless basis; and (4) the
holders of Private Placement Warrants (including the ordinary shares issuable upon exercise of such warrants) are entitled to registration
rights.
Because
we must furnish our shareholders with target business financial statements, we may lose the ability to complete an otherwise advantageous
initial Business Combination with some prospective target businesses.
The
federal proxy rules require that a proxy statement with respect to a vote on a Business Combination meeting certain financial significance
tests include historical and/or pro forma financial statement disclosure in periodic reports. We will include the same financial statement
disclosure in connection with our tender offer documents, whether or not they are required under the tender offer rules. These financial
statements may be required to be prepared in accordance with, or be reconciled to, accounting principles generally accepted in the United States
of America (“U.S. GAAP”) or international financial reporting standards as issued by the International Accounting Standards
Board, or IFRS, depending on the circumstances and the historical financial statements may be required to be audited in accordance with
the standards of the Public Company Accounting Oversight Board (United States), or PCAOB. These financial statement requirements
may limit the pool of potential target businesses we may acquire because some targets may be unable to provide such financial statements
in time for us to disclose such financial statements in accordance with federal proxy rules and complete our initial Business Combination
within the prescribed time frame.
Compliance
obligations under the Sarbanes-Oxley Act may make it more difficult for us to effectuate our initial Business Combination, require substantial
financial and management resources, and increase the time and costs of completing an acquisition.
Section 404
of the Sarbanes-Oxley Act requires that we evaluate and report on our system of internal controls beginning with our Annual Report
on Form 10-K for the year ending December 31, 2022. 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. The fact that we are a blank check company
makes compliance with the requirements of the Sarbanes-Oxley Act particularly burdensome on us as compared to other public companies
because a target business with which we seek to complete our initial Business Combination may not be in compliance with the provisions
of the Sarbanes-Oxley Act regarding adequacy of its internal controls. The development of the internal control of any such entity
to achieve compliance with the Sarbanes-Oxley Act may increase the time and costs necessary to complete any such acquisition.
If
our team pursues a company with operations or opportunities outside of the United States for our initial Business Combination, we
may face additional burdens in connection with investigating, agreeing to and completing such initial Business Combination, and if we
effect such initial Business Combination, we would be subject to a variety of additional risks that may negatively impact our operations.
If
our team pursues a company with operations or opportunities outside of the United States for our initial Business Combination, we
would be subject to risks associated with cross-border Business Combinations, including in connection with investigating, agreeing
to and completing our initial Business Combination, conducting due diligence in a foreign market, having such transaction approved by
any local governments, regulators or agencies and changes in the purchase price based on fluctuations in foreign exchange rates.
If
we effect our initial Business Combination with such a company, we would be subject to any special considerations or risks associated
with companies operating in an international setting, including any of the following:
● costs and difficulties
inherent in managing cross-border business operations and complying with commercial and legal requirements of overseas markets;
● rules and regulations regarding
currency redemption;
● complex corporate withholding
taxes on individuals;
● laws governing the manner
in which future Business Combinations may be effected;
● tariffs and trade barriers;
● regulations related to
customs and import/export matters;
● longer payment cycles;
● tax consequences, such
as tax law changes, including termination or reduction of tax and other incentives that the applicable government provides to domestic
companies, and variations in tax laws as compared to the United States;
● currency fluctuations and
exchange controls, including devaluations and other exchange rate movements;
● rates of inflation, price
instability and interest rate fluctuations;
● challenges in collecting
accounts receivable;
● cultural and language differences;
● employment regulations;
● energy shortages;
● crime, strikes, riots,
civil disturbances, terrorist attacks, natural disasters, wars and other forms of social instability;
● deterioration of political
relations with the United States;
● obligatory military service
by personnel; and
● government appropriation
of assets.
We
may not be able to adequately address these additional risks. If we were unable to do so, we may be unable to complete such initial Business
Combination or, if we complete such initial Business Combination, our operations might suffer, either of which may adversely impact our
results of operations and financial condition.
Meadow
Lane is not under any obligation to source any potential opportunities for our initial Business Combination or refer any such opportunities
to our Company or provide any other services to our Company.
Meadow
Lane may become aware of a potential Business Combination opportunity that may be an attractive opportunity for our Company. However,
Meadow Lane is not under any obligation to source any potential opportunities for our initial Business Combination or refer any such
opportunities to our Company or provide any other services to our Company. Employees of Meadow Lane may have fiduciary and/or contractual
duties to other companies in which Meadow Lane or its affiliates have invested. As a result, employees of Meadow Lane may have a duty
to offer Business Combination opportunities to Meadow Lane, other investment vehicles or other entities before other parties, including
our Company. Additionally, certain companies in which Meadow Lane has invested may enter into transactions with, provide goods or services
to, or receive goods or services from an entity with which we seek to complete our initial Business Combination. Transactions of these
types may present a conflict of interest because Meadow Lane may directly or indirectly receive a financial benefit as a result of such
transaction.
We
believe that any such potential conflicts of interest of Meadow Lane will be naturally mitigated, in part, by the differing nature of
targets that Meadow Lane typically considers most attractive for its investment activities, as compared to our activities related to
pursuing an initial Business Combination. Meadow Lane’s investment activities typically involve investing in private companies,
and while Meadow Lane may take a company public, it would typically invest in such an entity several years prior to an initial public
offering, not at the time of the initial public offering. In contrast, the acquisition targets that we expect to find most attractive
would generally have capital structures and existing business operations and infrastructure to go public immediately upon our acquisition.
As
a result, we may become aware of a potential transaction that is not a fit for the investment activities of Meadow Lane but that is an
attractive opportunity for us. Notwithstanding our belief regarding natural mitigation, Meadow Lane may compete with us for acquisition
opportunities that fall within Meadow Lane’s investment objectives or strategies. A decision by Meadow Lane to pursue an opportunity
would preclude us from pursuing it and could have a negative impact on our ability to complete our partnering transaction.
For
a complete discussion of our officers’ and directors’ business affiliations and the potential conflicts of interest that
you should be aware of, please see “Item 10. Directors, Executive Officers and Corporate Governance,” and “Item 10.
Directors, Executive Officers and Corporate Governance - Conflicts of Interest”
Our
advisory board members are not under any obligation to source any potential opportunities for our initial Business Combination or refer
any such opportunities to our Company or provide any other services for our Company.
Our
advisory board members are not under any obligation to source any potential opportunities for our initial Business Combination or refer
any such opportunities to our Company or provide any other services for our Company. Such advisors’ roles with respect to our Company
is expected to be primarily passive and advisory in nature. Our advisory board members may have fiduciary and/or contractual duties to
certain companies but do not have any fiduciary obligations to our Company. As a result, our advisory board members may have a duty to
offer Business Combination opportunities to certain other companies before our Company. Additionally, certain companies affiliated with
our advisory board members may enter into transactions with, provide goods or services to, or receive goods or services from an entity
with which we seek to complete our initial Business Combination. Transactions of these types may present a conflict of interest because
our Sponsors’ advisors may directly or indirectly receive a financial benefit as a result of such transaction.
Risks
Relating to the Post-Business Combination Company
We
may face risks related to companies in the healthcare industry.
Business
Combinations with businesses in the healthcare industry entail special considerations and risks. If we are successful in completing a
Business Combination with a target business in the healthcare industry, we will be subject to, and possibly adversely affected by, the
following risks:
● Competition could reduce
profit margins.
● Our inability to comply
with governmental regulations affecting the healthcare industry could negatively affect our operations. An inability to license or
enforce intellectual property rights on which our business may depend.
● The success of our planned
business following consummation of our initial Business Combination may depend on maintaining a well-secured business and technology
infrastructure.
● If we are required to obtain
governmental approval of our products, the production of our products could be delayed and we could be required to engage in a lengthy
and expensive approval process that may not ultimately be successful.
● Changes in the healthcare
related wellness industry and markets for such products affecting our customers or retailing practices could negatively impact customer
relationships and our results of operations.
● The healthcare industry
is susceptible to significant liability exposure.
● If liability claims are
brought against us following a Business Combination, it could materially adversely affect our operations.
● Dependence of our operations
upon third-party suppliers, manufacturers or contractors whose failure to perform adequately could disrupt our business. A disruption
in supply could adversely impact our business.
Any
of the foregoing could have a materially adverse effect on our operations following a Business Combination. However, our efforts in identifying
prospective target businesses will not be limited to the healthcare sector. Accordingly, if we acquire a target business in another industry,
we will be subject to risks attendant with the specific industry in which we operate or target business which we acquire which may or
may not be different than those risks listed above.
Subsequent
to our completion of our initial Business Combination, we may be required to take write-downs or write-offs, restructuring and impairment
or other charges that could have a significant negative effect on our financial condition, results of operations and the price of our
securities, which could cause you to lose some or all of your investment.
Even
if we conduct extensive due diligence on a target business with which we combine, we cannot assure you that this diligence will identify
all material issues that may be present with a particular target business that it would be possible to uncover all material issues through
a customary amount of due diligence, or that factors outside of the target business and outside of our control will not later arise.
As a result of these factors, we may be forced to later write-down or write-off assets, restructure our operations, or incur impairment
or other charges that could result in our reporting losses. Even if our due diligence successfully identifies certain risks, unexpected
risks may arise and previously known risks may materialize in a manner not consistent with our preliminary risk analysis. Even though
these charges may be non-cash items and not have an immediate impact on our liquidity, the fact that we report charges of this nature
could contribute to negative market perceptions about us or our securities. In addition, charges of this nature may cause us to violate
net worth or other covenants to which we may be subject as a result of assuming pre-existing debt held by a target business or by
virtue of our obtaining post-combination debt financing. Accordingly, any shareholder or warrant holder who chooses to remain a
shareholder or warrant holder, respectively, following our initial Business Combination could suffer a reduction in the value of their
securities. Such shareholders and warrant holders are unlikely to have a remedy for such reduction in value.
After
our initial Business Combination, our results of operations and prospects could be subject, to a significant extent, to the economic,
political, social and government policies, developments and conditions in the country in which we operate.
The
economic, political and social conditions, as well as government policies, of the country in which our operations are located could affect
our business. Economic growth could be uneven, both geographically and among various sectors of the economy and such growth may not be
sustained in the future. If in the future such country’s economy experiences a downturn or grows at a slower rate than expected,
there may be less demand for spending in certain industries. A decrease in demand for spending in certain industries could materially
and adversely affect our ability to find an attractive target business with which to consummate our initial Business Combination and
if we effect our initial Business Combination, the ability of that target business to become profitable.
Our
management may not be able to maintain control of a target business after our initial Business Combination. We cannot provide assurance
that, upon loss of control of a target business, new management will possess the skills, qualifications or abilities necessary to profitably
operate such business.
We
may structure our initial Business Combination so that the post-transaction company in which our Public Shareholders own shares
will own less than 100% of the equity interests or assets of a target business, but we will complete such Business Combination only if
the post-transaction company owns or acquires 50% or more of the issued and outstanding voting securities of the target or otherwise
acquires a controlling interest in the target business sufficient for us not to be required to register as an investment company under
the Investment Company Act. We will not consider any transaction that does not meet such criteria. Even if the post-transaction company
owns 50% or more of the voting securities of the target, our shareholders prior to our initial Business Combination may collectively
own a minority interest in the post Business Combination company, depending on valuations ascribed to the target and us in our initial
Business Combination transaction. For example, we could pursue a transaction in which we issue a substantial number of new ordinary shares
in exchange for all of the issued and outstanding capital stock, shares or other equity securities of a target, or issue a substantial
number of new shares to third parties in connection with financing our initial Business Combination. In this case, we would acquire a
100% interest in the target. However, as a result of the issuance of a substantial number of new ordinary shares, our shareholders immediately
prior to such transaction could own less than a majority of our issued and outstanding ordinary shares subsequent to such transaction.
In addition, other minority shareholders may subsequently combine their holdings resulting in a single person or group obtaining a larger
share of the company’s shares than we initially acquired. Accordingly, this may make it more likely that our management will not
be able to maintain our control of the target business.
We
may have limited ability to assess the management of a prospective target business and, as a result, may affect our initial Business
Combination with a target business whose management may not have the skills, qualifications or abilities to manage a public company.
When
evaluating the desirability of effecting our initial Business Combination with a prospective target business, our ability to assess the
target business’s management may be limited due to a lack of time, resources or information. Our assessment of the capabilities
of the target’s management, therefore, may prove to be incorrect and such management may lack the skills, qualifications or abilities
we suspected. Should the target’s management not possess the skills, qualifications or abilities necessary to manage a public company,
the operations and profitability of the post-combination business may be negatively impacted. Accordingly, any shareholder or warrant
holder who chooses to remain a shareholder or warrant holder, respectively, following our initial Business Combination could suffer a
reduction in the value of their securities. Such shareholders and warrant holders are unlikely to have a remedy for such reduction in
value.
The
directors and officers of an acquisition candidate may resign upon completion of our initial Business Combination. The departure of a
Business Combination target’s key personnel could negatively impact the operations and profitability of our post-combination business.
The role of an acquisition candidate’s key personnel upon the completion of our initial Business Combination cannot be ascertained
at this time. Although we contemplate that certain members of an acquisition candidate’s management team will remain associated
with the acquisition candidate following our initial Business Combination, it is possible that members of the management of an acquisition
candidate will not wish to remain in place.
After
our initial Business Combination, it is possible that a majority of our directors and officers will live outside the United States
and all or substantially all of our assets will be located outside the United States; therefore investors may not be able to enforce
federal securities laws or their other legal rights.
It
is possible that after our initial Business Combination, a majority of our directors and officers will reside outside of the United States
and all or substantially all of our assets will be located outside of the United States. As a result, it may be difficult, or in
some cases not possible, for investors in the United States to enforce their legal rights, to effect service of process upon all
of our directors or officers or to enforce judgments of United States courts predicated upon civil liabilities and criminal penalties
on our directors and officers under United States laws.
Our
letter agreement with our initial shareholders, directors and officers and registration rights agreement may be amended, and provisions
therein may be waived, without shareholder approval.
Our
letter agreement with our initial shareholders, directors and officers contain provisions relating to, among other things, transfer restrictions
of our Founder Shares and Private Placement Warrants, indemnification of the Trust Account, waiver of redemption rights and participation
in liquidating distributions from the Trust Account. The letter agreement and the registration rights agreement may be amended, and provisions
therein may be waived, without shareholder approval (although releasing the parties from the restriction contained in the letter agreement
not to transfer any Units, warrants, Class A ordinary shares or any other securities convertible into, or exercisable, or exchangeable
for, Class A ordinary shares for 180 days following the date of the prospectus related to our Initial Public Offering will
require the prior written consent of Morgan Stanley & Co. LLC). While we do not expect our board of directors to approve any
amendment to or waiver of the letter agreement or registration rights agreement prior to our initial Business Combination, it may be
possible that our board of directors, in exercising its business judgment and subject to its fiduciary duties, chooses to approve one
or more amendments to or waivers of such agreements. Any such amendments to or waivers of such agreements would not require approval
from our shareholders and may have an adverse effect on the value of an investment in our securities.
If
our management following our initial Business Combination is unfamiliar with U.S. securities laws, they may have to expend time and resources
becoming familiar with such laws, which could lead to various regulatory issues.
Following
our initial Business Combination, any or all of our management could resign from their positions as officers of the Company, and the
management of the target business at the time of the Business Combination could remain in place. Management of the target business may
not be familiar with U.S. securities laws. If new management is unfamiliar with U.S. securities laws, they may have to expend time and
resources becoming familiar with such laws. This could be expensive and time-consuming and could lead to various regulatory issues
which may adversely affect our operations.
Risks
Related to our Team and Their Respective Affiliates
We
are dependent upon our directors and officers and their departure could adversely affect our ability to operate.
Our
operations are dependent upon a relatively small group of individuals. We believe that our success depends on the continued service of
our directors and officers, at least until we have completed our initial Business Combination. In addition, our Chairman intends to devote
a majority of his time to our affairs, however, none of our directors or officers are required to commit any specified amount of time
to our affairs and, accordingly, will have conflicts of interest in allocating their time among various business endeavors, including
identifying potential Business Combinations and monitoring the related due diligence. For a discussion of certain of our officers’
and directors’ other business endeavors, please see “Item 10. Directors, Executive Officers and Corporate Governance.”
We do not have an employment agreement with, or key-man insurance on the life of, any of our directors or officers. The unexpected
loss of the services of one or more of our directors or officers could have a detrimental effect on us.
Our
ability to successfully effect our initial Business Combination and to be successful thereafter will be dependent upon the efforts of
our key personnel, some of whom may join us following our initial Business Combination. The loss of our or a target’s key personnel
could negatively impact the operations and profitability of our post-combination business.
Our
ability to successfully effect our initial Business Combination is dependent upon the efforts of our key personnel. The role of our key
personnel in the target business, however, cannot presently be ascertained. Although some of our key personnel may remain with the target
business in senior management or advisory positions following our initial Business Combination, it is likely that some or all of the
management of the target business will remain in place. While we intend to closely scrutinize any individuals we engage after our initial
Business Combination, we cannot assure you that our assessment of these individuals will prove to be correct. These individuals may be
unfamiliar with the requirements of operating a company regulated by the SEC, which could cause us to have to expend time and resources
helping them become familiar with such requirements.
In
addition, the directors and officers of an acquisition candidate may resign upon completion of our initial Business Combination. The
departure of a Business Combination target’s key personnel could negatively impact the operations and profitability of our post-combination business.
The role of an acquisition candidate’s key personnel upon the completion of our initial Business Combination cannot be ascertained
at this time. Although we contemplate that certain members of an acquisition candidate’s management team will remain associated
with the acquisition candidate following our initial Business Combination, it is possible that members of the management of an acquisition
candidate will not wish to remain in place. The loss of key personnel could negatively impact the operations and profitability of our
post-combination business.
Our
key personnel may negotiate employment or consulting agreements with a target business in connection with a particular Business Combination.
These agreements may provide for them to receive compensation following our initial Business Combination and as a result, may cause them
to have conflicts of interest in determining whether a particular Business Combination is the most advantageous.
Our
key personnel may be able to remain with the Company after the completion of our initial Business Combination only if they are able to
negotiate employment or consulting agreements in connection with the Business Combination. Such negotiations would take place simultaneously
with the negotiation of the Business Combination and could provide for such individuals to receive compensation in the form of cash payments
and/or our securities for services they would render to us after the completion of our initial Business Combination. The personal and
financial interests of such individuals may influence their motivation in identifying and selecting a target business, subject to his
or her fiduciary duties under Cayman Islands law. However, we believe the ability of such individuals to remain with us after the completion
of our initial Business Combination will not be the determining factor in our decision as to whether or not we will proceed with any
potential Business Combination. There is no certainty, however, that any of our key personnel will remain with us after the completion
of our initial Business Combination. We cannot assure you that any of our key personnel will remain in senior management or advisory
positions with us. The determination as to whether any members of our team will remain with us will be made at the time of our initial
Business Combination.
Our
directors and officers will allocate their time to other businesses thereby causing conflicts of interest in their determination as to
how much time to devote to our affairs. This conflict of interest could have a negative impact on our ability to complete our initial
Business Combination.
Our
Chairman intends to devote a majority of his time to our affairs, however, none of our directors or officers are required to, and will
not, commit their full time to our affairs, which may result in a conflict of interest in allocating their time between our operations
and our search for a Business Combination and their other businesses. We do not intend to have any full-time employees prior to
the completion of our initial Business Combination. Each of our officers and directors may be engaged in other business endeavors for
which he may be entitled to, or otherwise expect to receive, substantial compensation or other economic benefit and our officers and
directors are not obligated to contribute any specific number of hours per week to our affairs. Our independent directors will also serve
as officers and/or board members for other entities. If our directors’ and officers’ other business endeavors require them
to devote substantial amounts of time to such endeavors in excess of their current commitment levels, it could limit their ability to
devote time to our affairs, which may have a negative impact on our ability to complete our initial Business Combination. For a discussion
of our officers’ and directors’ other business endeavors, please see “Item 10. Directors, Executive Officers and Corporate
Governance.”
Certain
of our directors, officers and advisory board members are now, and all of them may in the future become, affiliated with entities engaged
in business activities similar to those intended to be conducted by us and, accordingly, may have conflicts of interest in determining
to which entity a particular business opportunity should be presented.
Until
we consummate our initial Business Combination, we intend to engage in the business of identifying and combining with one or more businesses.
Our Sponsor, our directors and officers, and our advisory board members are, or may in the future become, affiliated with entities that
are engaged in a similar business. Our Sponsor is not prohibited from sponsoring, investing or otherwise becoming involved with, any
other blank check companies, including in connection with their initial Business Combination, prior to us completing our initial Business
Combination and any such involvement may result in conflicts of interests as described above. Moreover, entities in which our directors
and officers are affiliated may enter into agreements or other arrangements with businesses, which agreements or arrangements may limit
or restrict our ability to enter into a Business Combination with such business. Our officers, directors and members of our advisory
board have agreed not to participate in the formation of, or become an officer, director or strategic advisor of, any other special purpose
acquisition company with a class of securities registered under the Exchange Act without our prior written consent, which will not be
unreasonably withheld.
Our
directors, officers and our advisory board members also may become aware of business opportunities that may be appropriate for presentation
to us and the other entities to which they owe certain fiduciary or contractual duties or otherwise have an interest in, and any other
special purpose acquisition company in which they may become involved with. Accordingly, they may have conflicts of interest in determining
to which entity a particular business opportunity should be presented. These conflicts may not be resolved in our favor and a potential
target business may be presented to other entities prior to its presentation to us, subject to his or her fiduciary duties under Cayman
Islands law. Our amended and restated memorandum and articles of association provide that, to the fullest extent permitted by applicable
law: (i) no individual serving as a director or an officer shall have any duty, except and to the extent expressly assumed by contract,
to refrain from engaging directly or indirectly in the same or similar business activities or lines of business as us; and (ii) we
renounce any interest or expectancy in, or in being offered an opportunity to participate in, any potential transaction or matter which
may be a corporate opportunity for any director or officer, on the one hand, and us, on the other. For a complete discussion of our directors’,
officers’ and advisory board members’ business affiliations and the potential conflicts of interest that you should be aware
of, please see “Item 10. Directors, Executive Officers and Corporate Governance”, “Item 10. Directors, Executive Officers
and Corporate Governance - Conflicts of Interest” and “Item 13. Certain Relationships and Related Party Transactions
- Support Services Agreement.”
Our
directors, officers, advisory board members, security holders and their respective affiliates may have competitive pecuniary interests
that conflict with our interests.
We
have not adopted a policy that expressly prohibits our directors, officers, advisory board members, security holders or affiliates from
having a direct or indirect pecuniary or financial interest in any investment to be acquired or disposed of by us or in any transaction
to which we are a party or have an interest. In fact, we may enter into a Business Combination with a target business that is affiliated
with our Sponsor, our directors, officers, or advisory board members. Nor do we have a policy that expressly prohibits any such persons
from engaging for their own account in business activities of the types conducted by us.
In
particular, affiliates of our Sponsor have invested in a diverse set of industries. As a result, there may be substantial overlap between
companies that would be a suitable business combination for us and companies that would make an attractive target for such other affiliates.
Members
of our team and companies affiliated thereof have been, and may from time to time be, involved in legal proceedings or governmental investigations
unrelated to our business.
Members
of our team have been involved in a wide variety of businesses. Such involvement has, and may lead to, media coverage and public awareness.
As a result of such involvement, members of our team and companies affiliated thereof have been, and may from time to time be, involved
in legal proceedings or governmental investigations unrelated to our business. Any such proceedings or investigations may be detrimental
to our or their reputation or result in other negative consequences or damages, which could negatively affect our ability to identify
and complete an initial business combination and may have an adverse effect on the price of our securities.
Our
Sponsor is managed by Craig E. Barnett, our Chairman and Chief Executive Officer, and is owned by entities controlled by him and associated
with Meadow Lane. As a result, Mr. Barnett and the Meadow Lane affiliates may exert a substantial influence on actions requiring
shareholder vote, potentially in a manner that you do not support, and their interests may differ from your interests.
Our
Sponsor is managed by Craig E. Barnett, our Chairman and Chief Executive Officer, and Craig E. Barnett is the Chief Executive Officer
of Meadow Lane. In addition, our Sponsor is owned by Meadow Lane affiliates. As a result, Mr. Barnett and the Meadow Lane affiliates
may exert a substantial influence on other actions requiring a shareholder vote, potentially in a manner that you do not support, including
appointment of our directors, amendments to our amended and restated memorandum and articles of association and approval of major corporate
transactions. If our Sponsor purchases any Class A ordinary shares in the open market or in privately negotiated transactions, this
would increase its influence over such actions. In addition, we have agreed not to enter into a definitive agreement regarding an initial
Business Combination without the prior consent of our Sponsor.
The
interests of Craig E. Barnett and the Meadow Lane affiliates may differ from or be opposed to the interests of other shareholders. The
Meadow Lane affiliates engage in a variety of businesses, including, but not limited to, business and inventory liquidations, apparel
companies and real estate investments. Opportunities may arise in the area of potential competitive business activities that may be attractive
to the Meadow Lane affiliates and us. The Meadow Lane affiliates are under no obligation to communicate or offer any corporate opportunity
to us. In addition, the Meadow Lane affiliates have the right to engage in similar activities as us, do business with our suppliers and
customers, and, except as limited by agreement, employ or otherwise engage any of our officers or employees.
Risks
Relating to our Securities and Trust Account
You
will not have any rights or interests in funds from the Trust Account, except under certain limited circumstances. To liquidate your
investment, therefore, you may be forced to sell your Public Shares and/or warrants, potentially at a loss.
Our
Public Shareholders will be entitled to receive funds from the Trust Account only upon the earliest to occur of: (1) our completion
of an initial Business Combination, and then only in connection with those Class A ordinary shares that such shareholder properly
elected to redeem, subject to the limitations described herein; (2) the redemption of any Public Shares properly submitted in connection
with a shareholder vote to amend our amended and restated memorandum and articles of association (A) to modify the substance or
timing of our obligation to allow redemption in connection with our initial Business Combination or to redeem 100% of our Public Shares
if we do not complete our initial Business Combination within 18 months (or up to 24 months if our Sponsor exercises its extension
options) from the closing of the Initial Public Offering or (B) with respect to any other provision relating to shareholders’
rights or pre-initial Business Combination activity; and (3) the redemption of our Public Shares if we have not completed an
initial Business Combination within 18 months (or up to 24 months if our Sponsor exercises its extension options) from the
closing of the Initial Public Offering, subject to applicable law. Public Shareholders who redeem their Class A ordinary shares
in connection with a shareholder vote described in clause (2) in the preceding sentence shall not be entitled to funds from the
Trust Account upon the subsequent completion of an initial Business Combination or liquidation if we have not consummated an initial
Business Combination within 18 months (or up to 24 months if our Sponsor exercises its extension options) from the closing
of the Initial Public Offering, with respect to such Class A ordinary shares so redeemed. In no other circumstances will a shareholder
have any right or interest of any kind to or in the Trust Account. Holders of warrants will not have any right to the proceeds held in
the Trust Account with respect to the warrants. Accordingly, to liquidate your investment, you may be forced to sell your Public Shares
and/or warrants, potentially at a loss.
Nasdaq
may delist our securities from trading on its exchange, which could limit investors’ ability to make transactions in our securities
and subject us to additional trading restrictions.
We
cannot assure you that our securities will continue to be, listed on Nasdaq. In order to continue listing our securities on Nasdaq prior
to our initial Business Combination, we must maintain certain financial, distribution and share price levels. In general, we must maintain
a minimum amount in shareholders’ equity and a minimum of 300 round lot holders. Additionally, in connection with our initial Business
Combination, we will be required to demonstrate compliance with the applicable exchange’s initial listing requirements, which are
more rigorous than the continued listing requirements, in order to continue to maintain the listing of our securities. We cannot assure
you that we will be able to meet those initial listing requirements at that time.
If
any of our securities are delisted from trading on its exchange and we are not able to list our securities on another national securities
exchange, we expect such securities could be quoted on an over-the-counter market. If this were to occur, we could face significant
material adverse consequences, including:
● a limited availability
of market quotations for our securities;
● reduced liquidity for our
securities;
● a determination that our
Class A ordinary shares are a “penny stock” which will require brokers trading in our Class A ordinary shares
to adhere to more stringent rules and possibly result in a reduced level of trading activity in the secondary trading market for
our securities;
● a limited amount of news
and analyst coverage; and
● a decreased ability to
issue additional securities or obtain additional financing in the future.
The
National Securities Markets Improvement Act of 1996, which is a federal statute, prevents or pre-empts the states from regulating the
sale of certain securities, which are referred to as “covered securities.” Our Units, Class A ordinary shares and warrants
currently qualify as covered securities under such statute. Although the states are pre-empted from regulating the sale of covered securities,
the federal statute does allow the states to investigate companies if there is a suspicion of fraud, and, if there is a finding of fraudulent
activity, then the states can regulate or bar the sale of covered securities in a particular case. While we are not aware of a state
having used these powers to prohibit or restrict the sale of securities issued by blank check companies, other than the State of Idaho,
certain state securities regulators view blank check companies unfavorably and might use these powers, or threaten to use these powers,
to hinder the sale of securities of blank check companies in their states. Further, if we were no longer listed on Nasdaq, our securities
would not qualify as covered securities under such statute and we would be subject to regulation in each state in which we offer our
securities, which may negatively impact our ability to consummate our initial Business Combination.
You
will not be permitted to exercise your warrants unless we register and qualify the issuance of the underlying Class A ordinary shares
or certain exemptions are available.
If
the issuance of the Class A ordinary shares upon exercise of the warrants is not registered, qualified or exempt from registration
or qualification under the Securities Act and applicable state securities laws, holders of warrants will not be entitled to exercise
such warrants and such warrants may have no value and expire worthless. In such event, holders who acquired their warrants as part of
a purchase of Units will have paid the full Unit purchase price solely for the Class A ordinary shares included in the Units.
Pursuant
to the terms of the warrant agreement, we have agreed that, as soon as practicable, but in no event later than 20 business days after
the closing of our initial Business Combination, we will use our commercially reasonable efforts to file a post-effective amendment
to the registration statement of which the prospectus for our Initial Public Offering forms a part or a new registration statement covering
the registration under the Securities Act of the Class A ordinary shares issuable upon exercise of the warrants and thereafter will
use our commercially reasonable efforts to cause the same to become effective within 60 business days following our initial Business
Combination and to maintain a current prospectus relating to the Class A ordinary shares issuable upon exercise of the warrants
until the expiration of the warrants in accordance with the provisions of the warrant agreement. We cannot assure you that we will be
able to do so if, for example, any facts or events arise which represent a fundamental change in the information set forth in the registration
statement or prospectus, the financial statements contained or incorporated by reference therein are not current or correct or the SEC
issues a stop order.
If
the Class A ordinary shares issuable upon exercise of the warrants are not registered under the Securities Act, under the terms
of the warrant agreement, holders of warrants who seek to exercise their warrants will not be permitted to do so for cash and, instead,
will be required to do so on a cashless basis in accordance with Section 3(a)(9) of the Securities Act or another exemption.
In
no event will warrants be exercisable for cash or on a cashless basis, and we will not be obligated to issue any shares to holders seeking
to exercise their warrants, unless the issuance of the shares upon such exercise is registered or qualified under the securities laws
of the state of the exercising holder, or an exemption from registration or qualification is available.
If
our Class A ordinary shares are at the time of any exercise of a warrant not listed on a national securities exchange such that
they satisfy the definition of “covered securities” under Section 18(b)(1) of the Securities Act, we may, at our option,
not permit holders of warrants who seek to exercise their warrants to do so for cash and, instead, require them to do so on a cashless
basis in accordance with Section 3(a)(9) of the Securities Act; in the event we so elect, we will not be required to file or maintain
in effect a registration statement or register or qualify the shares underlying the warrants under applicable state securities laws,
and in the event we do not so elect, we will use our best efforts to register or qualify the shares underlying the warrants under applicable
state securities laws to the extent an exemption is not available.
In
no event will we be required to net cash settle any warrant, or issue securities (other than upon a cashless exercise as described above)
or other compensation in exchange for the warrants in the event that we are unable to register or qualify the shares underlying the warrants
under the Securities Act or applicable state securities law.
We
may amend the terms of the warrants in a manner that may be adverse to holders of public warrants with the approval by the holders of
at least 50% of the then-outstanding public warrants.
Our
warrants will be issued in registered form under a warrant agreement between Continental Stock Transfer & Trust Company, as
warrant agent, and us. The warrant agreement provides that (a) the terms of the warrants may be amended without the consent of any
holder for the purpose of (i) curing any ambiguity or correcting any mistake, including to conform the provisions of the warrant
agreement to the description of the terms of the warrants and the warrant agreement set forth in the prospectus related to the Initial
Public Offering, or defective provision, (ii) removing or reducing our ability to redeem the public warrants, or (iii) adding
or changing any provisions with respect to matters or questions arising under the warrant agreement as the parties to the warrant agreement
may deem necessary or desirable and that the parties deem to not adversely affect the rights of the registered holders of the warrants,
(b) the warrant agreement may be amended by the parties thereto with the vote or written consent of the registered holders of at
least 50% of the then outstanding public warrants and Private Placement Warrants, voting together as a single class, to allow for the
warrants to be or continue to be, as applicable, classified as equity in the company’s financial statements, and (c) all other
modifications or amendments, including any modification or amendment to increase the warrant price or shorten the exercise period, (i) with
respect to the terms of the public warrants or any provision of the warrant agreement with respect to the public warrants, requires the
vote or written consent of the registered holders of at least 50% of the then outstanding public warrants and (ii) solely with respect
to the terms of the Private Placement Warrants or any provision of the warrant agreement with respect to the Private Placement Warrants
requires the vote or written consent of at least 50% of the then outstanding Private Placement Warrants. Accordingly, we may amend the
terms of the public warrants in a manner adverse to a holder if holders of at least 50% of the then-outstanding public warrants
approve of such amendment. Although our ability to amend the terms of the public warrants with the consent of at least 50% of the then-outstanding public
warrants is unlimited, examples of such amendments could be amendments to, among other things, increase the exercise price of the warrants,
shorten the exercise period or decrease the number of ordinary shares purchasable upon exercise of a warrant.
We
may redeem your unexpired warrants prior to their exercise at a time that is disadvantageous to you, thereby making your warrants worthless.
We
have the ability to redeem outstanding warrants at any time after they become exercisable and prior to their expiration, at a price of
$0.01 per warrant if, among other things, the last reported sale price of our Class A ordinary shares for any 20 trading days within
a 30-trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the
warrant holders (the “Reference Value”) equals or exceeds $18.00 per share (as adjusted). If and when the warrants become
redeemable by us, we may exercise our redemption right even if we are unable to register or qualify the underlying securities for sale
under all applicable state securities laws. As a result, we may redeem the public warrants as set forth above even if the holders are
otherwise unable to exercise the warrants. Redemption of the outstanding warrants as described above could force you to: (1) exercise
your warrants and pay the exercise price therefor at a time when it may be disadvantageous for you to do so; (2) sell your warrants
at the then-current market price when you might otherwise wish to hold your warrants; or (3) accept the nominal redemption
price which, at the time the outstanding warrants are called for redemption, we expect would be substantially less than the market value
of your warrants.
Because
each unit contains one-half of one redeemable warrant and only a whole warrant may be exercised, the Units may be worth less than Units
of some other blank check companies.
Each
Unit contains one-half of one redeemable warrant. Pursuant to the warrant agreement, no fractional warrants will be issued upon
separation of the Units, and only whole warrants will trade. This is different from other offerings similar to ours whose units include
one ordinary share and one whole warrant or a greater fraction of one whole warrant to purchase one share. We have established the components
of the Units in this way in order to reduce the dilutive effect of the warrants upon completion of a Business Combination since the warrants
will be exercisable in the aggregate for a third of the number of shares compared to units that each contain a whole warrant to purchase
one whole share, thus making us, we believe, a more attractive Business Combination partner for target businesses. Nevertheless, this
Unit structure may cause our Units to be worth less than if they included one whole warrant or a greater fraction of one whole warrant
to purchase one whole share.
Because
we are incorporated under the laws of the Cayman Islands, you may face difficulties in protecting your interests, and your ability to
protect your rights through the U.S. federal courts may be limited.
We
are an exempted company incorporated under the laws of the Cayman Islands. As a result, it may be difficult for investors to effect service
of process within the United States upon our directors or officers, or enforce judgments obtained in the United States courts
against our directors or officers.
Our
corporate affairs will be governed by our amended and restated memorandum and articles of association, the Companies Act (as the same
may be supplemented or amended from time to time) 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 from English common law, the decisions of whose courts are
of persuasive authority, but are not binding on a court in the Cayman Islands. The rights of our shareholders and the fiduciary responsibilities
of our directors under Cayman Islands law are different from what they would be under statutes or judicial precedent in some jurisdictions
in the United States. In particular, the Cayman Islands has a different body of securities laws as compared to the United States,
and certain states, such as Delaware, may have more fully developed and judicially interpreted bodies of corporate law. In addition,
Cayman Islands companies may not have standing to initiate a shareholders derivative action in a Federal court of the United States.
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 Public Shareholders of a United States
company.
Our
warrant agreement designates the courts of the State of New York or the United States District Court for the Southern District
of New York as the sole and exclusive forum for certain types of actions and proceedings that may be initiated by holders of our
warrants, which could limit the ability of warrant holders to obtain a favorable judicial forum for disputes with our Company.
Our
warrant agreement provides that, subject to applicable law, (i) any action, proceeding or claim against us arising out of or relating
in any way to the warrant agreement, including under the Securities Act, will be brought and enforced in the courts of the State of New York
or the United States District Court for the Southern District of New York, and (ii) that we irrevocably submit to such
jurisdiction, which jurisdiction shall be the exclusive forum for any such action, proceeding or claim. We will waive any objection to
such exclusive jurisdiction and that such courts represent an inconvenient forum.
Notwithstanding
the foregoing, these provisions of the warrant agreement do not apply to suits brought to enforce any liability or duty created by the
Exchange Act or any other claim for which the federal district courts of the United States of America are the sole and exclusive
forum. Any person or entity purchasing or otherwise acquiring any interest in any of our warrants shall be deemed to have notice of and
to have consented to the forum provisions in our warrant agreement. If any action, the subject matter of which is within the scope of
the forum provisions of the warrant agreement, is filed in a court other than a court of the State of New York or the United States
District Court for the Southern District of New York (a “foreign action”) in the name of any holder of our warrants,
such holder shall be deemed to have consented to: (x) the personal jurisdiction of the state and federal courts located in the State
of New York in connection with any action brought in any such court to enforce the forum provisions (an “enforcement action”),
and (y) having service of process made upon such warrant holder in any such enforcement action by service upon such warrant holder’s
counsel in the foreign action as agent for such warrant holder.
This
choice-of-forum provision may limit a warrant holder’s ability to bring a claim in a judicial forum that it finds favorable
for disputes with our Company, which may discourage such lawsuits. Alternatively, if a court were to find this provision of our warrant
agreement inapplicable or unenforceable with respect to one or more of the specified types of actions or proceedings, we may incur additional
costs associated with resolving such matters in other jurisdictions, which could materially and adversely affect our business, financial
condition and results of operations and result in a diversion of the time and resources of our management and board of directors.
Provisions
in our amended and restated memorandum and articles of association may inhibit a takeover of us, which could limit the price investors
might be willing to pay in the future for our Class A ordinary shares and could entrench management.
Our
amended and restated memorandum and articles of association contain provisions that may discourage unsolicited takeover proposals that
shareholders may consider to be in their best interests. These provisions include two-year director terms and the ability of the
board of directors to designate the terms of and issue new series of preference shares, which may make more difficult the removal of
management and may discourage transactions that otherwise could involve payment of a premium over prevailing market prices for our securities.
The
warrants may become exercisable and redeemable for a security other than the Class A ordinary shares, and you will not have any
information regarding such other security at this time.
In
certain situations, including if we are not the surviving entity of a Business Combination, the warrants may become exercisable for a
security other than the Class A ordinary shares. As a result, if the surviving company redeems your warrants for securities pursuant
to the warrant agreement, you may receive a security in a company of which you do not have information at this time. Pursuant to the
warrant agreement, the surviving company will be required to use commercially reasonable efforts to register the issuance of the security
underlying the warrants as soon as practicable, but in no event later than 20 business days, after the closing of our initial Business
Combination.
General
Risk Factors
We
are a newly incorporated company with no operating history and no operating revenues, and you have no basis on which to evaluate our
ability to achieve our business objective.
We
are a newly incorporated company incorporated under the laws of the Cayman Islands with no operating results. Because we lack an operating
history, you have no basis upon which to evaluate our ability to achieve our business objective of completing our initial Business Combination
with one or more target businesses. We have no definitive plans, arrangements or understandings with any prospective target business
concerning a Business Combination and may be unable to complete our initial Business Combination. If we fail to complete our initial
Business Combination, we will never generate any operating revenues.
Past
performance of Meadow Lane, for any of its funds, investments or portfolio companies, or our Sponsor, directors, officers and advisory
board members and their respective affiliates may not be indicative of future performance of an investment in the Company.
Information
regarding past experience or performance of Meadow Lane, our Sponsor, directors, officers and advisory board members and their respective
affiliates is presented for informational purposes only. Past experience or performance of Meadow Lane, or our Sponsor, directors, officers
and advisory board members or their respective affiliates is not a guarantee either (1) that we will be able to identify a suitable
candidate and execute an initial Business Combination or (2) of success with respect to any Business Combination we may consummate.
You should not rely on the historical record of Meadow Lane, or any of its funds, investments or portfolio companies, or our Sponsor,
directors, officers or advisory board member or their respective affiliates or any related investment’s performance as indicative
of our future performance of an investment in the Company or the returns the Company will, or is likely to, generate going forward.
We
may be a passive foreign investment company, or “PFIC,” which could result in adverse U.S. federal income tax consequences
to U.S. investors.
If
we are a PFIC for any taxable year (or portion thereof) that is included in the holding period of a U.S. Holder of our ordinary shares
or warrants, the U.S. Holder may be subject to adverse U.S. federal income tax consequences and may be subject to additional reporting
requirements. Our PFIC status for our taxable year ended December 31, 2021, our current taxable year, and our subsequent taxable years
may depend upon the status of an acquired company pursuant to a Business Combination and whether we qualify for the PFIC start-up exception.
Depending on the particular circumstances, the application of the start-up exception may be subject to uncertainty, and there cannot
be any assurance that we will qualify for the start-up exception. Accordingly, there can be no assurances with respect to our status
as a PFIC for our taxable year ended December 31, 2021, our current taxable year, or any subsequent taxable year. Our actual PFIC status
for any taxable year, moreover, will not be determinable until after the end of such taxable year. If we determine we are a PFIC for
any taxable year, we will endeavor to provide to a U.S. Holder such information as the Internal Revenue Service (“IRS”) may
require, including a PFIC Annual Information Statement, in order to enable the U.S. Holder to make and maintain a “qualified electing
fund” election, but there can be no assurance that we will timely provide such required information, and such election would likely
be unavailable with respect to our warrants in all cases. We urge U.S. Holders to consult their own tax advisors regarding the possible
application of the PFIC rules to holders of our ordinary shares and warrants.
Cyber
incidents or attacks directed at us could result in information theft, data corruption, operational disruption and/or financial
loss.
We
depend on digital technologies, including information systems, infrastructure and cloud applications and services, including those of
third parties with which we may deal. Sophisticated and deliberate attacks on, or security breaches in, our systems or infrastructure,
or the systems or infrastructure of third parties or the cloud, could lead to corruption or misappropriation of our assets, proprietary
information and sensitive or confidential data. As an early stage company without significant investments in data security protection,
we may not be sufficiently protected against such occurrences. We may not have sufficient resources to adequately protect against, or
to investigate and remediate any vulnerability to, cyber incidents. It is possible that any of these occurrences, or a combination of
them, could have adverse consequences on our business and lead to financial loss.
We
are an emerging growth company and a smaller reporting company within the meaning of the Securities Act, and if we take advantage of
certain exemptions from disclosure requirements available to emerging growth companies or smaller reporting 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 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 shareholder approval of any
golden parachute payments not previously approved. As a result, our shareholders 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 shares held by non-affiliates equals or exceeds $700 million as of the
end of any second quarter of a fiscal year, in which case we would no longer be an emerging growth company as of the end of such fiscal
year. 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.
Further,
Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial
accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective
or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting
standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements
that apply to non-emerging growth companies but any such election to opt out is irrevocable. We have elected not to opt out of such
extended transition period which means that when a standard is issued or revised and it has different application dates for public or
private companies, we, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new
or revised standard. This may make comparison of our financial statements with another public company which is neither an emerging growth
company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of
the potential differences in accounting standards used.
Additionally,
we are a “smaller reporting company” as defined in Item 10(f)(1) of Regulation S-K. Smaller reporting companies may
take advantage of certain reduced disclosure obligations, including, among other things, providing only two years of audited financial
statements. We will remain a smaller reporting company until the last day of the fiscal year in which (1) the market value of our
ordinary shares held by non-affiliates equals or exceeds $250 million as of the end of that year’s second fiscal quarter,
or (2) our annual revenues equaled or exceeded $100 million during such completed fiscal year or the market value of our ordinary
shares held by non-affiliates equals or exceeds $700 million as of the end of that year’s second fiscal quarter. To the
extent we take advantage of such reduced disclosure obligations, it may also make comparison of our financial statements with other public
companies difficult or impossible.
Our
independent registered public accounting firm’s report contains an explanatory paragraph that expresses substantial doubt about
our ability to continue as a “going concern.”
As
of December 31, 2021, we had $1,369,047 in cash and working capital of $1,198,719. Our plans to raise capital and to consummate our initial
Business Combination may not be successful. These factors, among others, raise substantial doubt about our ability to continue as a going
concern. The financial statements contained elsewhere in this Annual Report on Form 10-K do not include any adjustments that might result
from our inability to continue as a going concern.
The
value of the Founder Shares following completion of our initial Business Combination is likely to be substantially higher than the nominal
price paid for them, even if the trading price of our ordinary shares at such time is substantially less than $10.00 per share.
Our
Sponsor has invested in us an aggregate of $10,025,000, comprised of the $25,000 purchase price for the Founder Shares and the $10,000,000
purchase price for the Private Placement Warrants. Assuming a trading price of $10.00 per share upon consummation of our initial Business
Combination, the 5,000,000 Founder Shares would have an aggregate implied value of $50,000,000. Even if the trading price of our ordinary
shares were as low as $2.01 per share, and the Private Placement Warrants were worthless, the value of the Founder Shares would be equal
to the Sponsor’s initial investment in us. As a result, our Sponsor is likely to be able to make a substantial profit on its investment
in us at a time when our Public Shares have lost significant value and our warrants are worthless. Accordingly, our management team,
some of whom own interests in our Sponsor, may be more willing to pursue a Business Combination with a riskier or less-established target
business than would be the case if our Sponsor had paid the same per share price for the Founder Shares as our Public Shareholders paid
for their Public Shares.
Item 1.B. Unresolved Staff Comments.
None.

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ITEM 1A. RISK FACTORS

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ITEM 1B. UNRESOLVED STAFF COMMENTS

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ITEM 2. PROPERTIES
Item 2. Properties.
We
currently maintain our executive offices at 767 Third Avenue, 11th Floor, New York, New York 10017. The cost
for this space is included in the $15,000 per month fee that we pay our Sponsor for office space, administrative and support services.
We consider our current office space adequate for our current operations.

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ITEM 3. LEGAL PROCEEDINGS
Item 3. Legal Proceedings.
We
are not currently subject to any material legal proceedings, nor, to our knowledge, is any material legal proceeding threatened against
us or any of our officers or directors in their corporate capacity.

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ITEM 4. MINE SAFETY DISCLOSURE
Item 4. Mine Safety Disclosures.
None.
Part II.

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ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY
Item 5. Market for Registrant’s
Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
(a) Market Information
Our
Units began trading on The Nasdaq Stock Market LLC (“Nasdaq”) on December 15, 2021. Each Unit consists of one Class A ordinary
share and one-half of one redeemable warrant to purchase one Class A ordinary share. On February 3, 2022, we announced that holders of
the Units may elect to separately trade the Class A ordinary shares and redeemable warrants included in the Units commencing on February
4. 2022. Any Units not separated continue to trade on Nasdaq under the symbol “PRLHU”. Any underlying Class A ordinary shares
and redeemable warrants that were separated trade on Nasdaq under the symbols “PRLH” and “PRLHW,” respectively.
(b) Holders
As
of March 28, 2022, there was approximately one holder of record of our Units, approximately one holder of record of our separately
traded Class A ordinary shares, and approximately two holders of record of our redeemable warrants.
(c) Dividends
We
have not paid any cash dividends on our Class A ordinary shares to date and do not intend to pay cash dividends prior to the completion
of our initial Business Combination. The payment of cash dividends in the future will be dependent upon our revenues and earnings, if
any, capital requirements and general financial condition subsequent to completion of our initial Business Combination. The payment of
any cash dividends subsequent to our initial Business Combination will be within the discretion of our board of directors at such time.
In addition, our board of directors is not currently contemplating and does not anticipate declaring any share dividends in the foreseeable
future. Further, if we incur any indebtedness in connection with our initial Business Combination, our ability to declare dividends may
be limited by restrictive covenants we may agree to in connection therewith.
(d) Securities Authorized for
Issuance Under Equity Compensation Plans
None.
(e) Performance Graph
The
performance graph has been omitted as permitted under rules applicable to smaller reporting companies.
(f) Recent Sales of Unregistered
Securities; Use of Proceeds from Registered Offerings
Unregistered
Sales
Founder
Shares
On
April 3, 2021, our Sponsor paid $25,000, or approximately $0.003 per share, to purchase an aggregate of 7,187,500 Class B ordinary
shares, par value $0.0001 per share. “Founder Shares” as used herein refer to our Class B ordinary shares initially purchased
by our Sponsor and our Class A ordinary shares that will be issued upon the conversion thereof. In November 2021, the Sponsor surrendered
an aggregate of 2,156,250 Founder Shares for no consideration, thereby reducing the aggregate number of Founder Shares outstanding to
5,031,250, resulting in an effective purchase price paid for the Founder Shares of approximately $0.005 per share. On December 22, 2021,
due to the partial exercise of the over-allotment option by the underwriter of the Initial Public Offering, the Sponsor forfeited 31,250
Class B Ordinary Shares for no consideration, thereby reducing the aggregate number of Founder Shares outstanding to 5,000,000.
The
initial shareholders have agreed not to transfer, assign or sell any of their Founder Shares until the earlier to occur of: (1) one
year after the completion of the initial Business Combination; or (2) subsequent to the initial Business Combination (i) if
the last reported sale price of the Class A ordinary shares equals or exceeds $12.00 per share (as adjusted for share sub-divisions,
share dividends, rights issuances, consolidations, reorganizations, recapitalizations and other similar transactions) for any 20 trading
days within any 30-trading day period commencing at least 150 days after the initial Business Combination or (y) the date
on which we complete a liquidation, merger, share exchange, reorganization or other similar transaction that results in all of the Public
Shareholders having the right to exchange their ordinary shares for cash, securities or other property. Any permitted transferees would
be subject to the same restrictions and other agreements of the initial shareholders with respect to any Founder Shares.
Private
Placement
Simultaneously
with the closing of our Initial Public Offering, our Sponsor purchased an aggregate of 9,000,000 Private Placement Warrants, each exercisable
to purchase one Class A ordinary share at $11.50 per share, at a price of $1.00 per warrant, or $9,000,000 in the aggregate. In connection
with the underwriter’s partial exercise of its option to purchase additional Units, the Sponsor purchased an additional 1,000,000
Private Placement Warrants, generating gross proceeds to the Company of $1,000,000.
The
issuance was made pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities Act. No underwriting
discounts or commissions were paid with respect to such sales.
Use
of Proceeds
On
December 17, 2021, the Company consummated its Initial Public Offering of 17,500,000 Units at $10.00 per Unit, generating gross proceeds
of $175,000,000. Morgan Stanley & Co. LLC acted as sole book-running manager for the Initial Public Offering. The securities sold
in the Initial Public Offering were registered under the Securities Act on a registration statement on Form S-1 (No. 333-261319). The
SEC declared the registration statements effective on December 14, 2021. On December 20, 2021 the underwriter partially exercised its
over-allotment option and stated its intention to purchase an additional 2,500,000 of the 2,625,000 over-allotment Units available, generating
gross proceeds of $25,000,000. The over-allotment closed on December 22, 2021.
Simultaneously
with the closing of our Initial Public Offering, our Sponsor purchased an aggregate of 9,000,000 Private Placement Warrants, each exercisable
to purchase one Class A ordinary share at $11.50 per share, at a price of $1.00 per warrant, or $9,000,000 in the aggregate. In
connection with the underwriter’s partial exercise of its option to purchase additional Units, the Sponsor purchased an additional
1,000,000 Private Placement Warrants, generating gross proceeds to the Company of $1,000,000.
In connection with the Public Offerings (including the Initial Public Offering and exercise of over-allotment option), we incurred offering costs of approximately $11,712,588 (including deferred underwriting commissions of $7,000,000). Other incurred offering costs consisted principally of preparation fees related to the Initial Public Offering. After deducting the underwriting discounts and commissions (excluding the deferred portion, which amount will be payable upon consummation of the initial Business Combination, if consummated) and the Initial Public Offering expenses, $204,000,000 of the net proceeds from our Initial Public Offering and certain of the proceeds from the Private Placement of the Private Placement Warrants (or $10.20 per Unit sold in the Initial Public Offering) was placed in the Trust Account. The net proceeds of the Initial Public Offering and certain proceeds from the sale of the Private Placement Warrants are held in the Trust Account and invested as described elsewhere in this Annual Report on Form 10-K.
There
has been no material change in the planned use of the proceeds from the Initial Public Offering and Private Placement as is described
in the Company’s final prospectus related to the Initial Public Offering. For a description of the use of the proceeds generated
from the Initial Public Offering, see “Item 1. Business.”

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ITEM 6. SELECTED FINANCIAL DATA
Item 6. [Reserved].

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ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS
Item 7. Management’s Discussion
and Analysis of Financial Condition and Results of Operations.
References
to the “Company,” “our,” “us” or “we” refer to Pearl Holdings Acquisition Corp. The following
discussion and analysis of the Company’s financial condition and results of operations should be read in conjunction with the audited
financial statements and the notes related thereto which are included in “Item 8. Financial Statements and Supplementary Data”
of this Annual Report on Form 10-K. Certain information contained in the discussion and analysis set forth below includes forward-looking
statements. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of many factors,
including those set forth under “Cautionary Note Regarding Forward-Looking Statements and Risk Factor Summary,” “Item
1A. Risk Factors” and elsewhere in this Annual Report on Form 10-K.
Overview
We
are a newly incorporated blank check company, incorporated as a Cayman Islands exempted company for the purpose of effecting a merger,
share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. We intend
to effectuate our initial business combination using cash from the proceeds of the offering and the sale of the private placement warrants,
our shares, debt or a combination of cash, shares and debt.
The
issuance of additional ordinary shares or preference shares in a business combination:
● may significantly dilute
the equity interest of investors, which dilution would increase if the anti-dilution provisions in the Class B
ordinary shares resulted in the issuance of Class A ordinary shares on a greater than one-to-one basis upon conversion of the
Class B ordinary shares;
● may subordinate the rights
of holders of ordinary shares if preference shares are issued with rights senior to those afforded our ordinary shares;
● could cause a change of
control if a substantial number of our ordinary shares are issued, which may affect, among other things, our ability to use our net
operating loss carry forwards, if any, and could result in the resignation or removal of our present directors and officers;
● may have the effect of
delaying or preventing a change of control of us by diluting the share ownership or voting rights of a person seeking to obtain control
of us;
● may adversely affect prevailing
market prices for our units, ordinary shares and/or warrants; and
● may not result in adjustment
to the exercise price of our warrants. Similarly, if we issue debt or otherwise incur significant indebtedness, it could result in:
● default and foreclosure
on our assets if our operating revenues after an initial business combination are insufficient to repay our debt obligations;
● acceleration of our obligations
to repay the indebtedness even if we make all principal and interest payments when due if we breach certain covenants that require
the maintenance of certain financial ratios or reserves without a waiver or renegotiation of that covenant;
● our immediate payment of
all principal and accrued interest, if any, if the debt is payable on demand;
● our inability to obtain
necessary additional financing if the debt contains covenants restricting our ability to obtain such financing while the debt is
outstanding;
● our inability to pay dividends
on our ordinary shares;
● using a substantial portion
of our cash flow to pay principal and interest on our debt, which will reduce the funds available for dividends on our ordinary shares
if declared, expenses, capital expenditures, acquisitions and other general corporate purposes;
● limitations on our flexibility
in planning for and reacting to changes in our business and in the industry in which we operate;
● increased vulnerability
to adverse changes in general economic, industry and competitive conditions and adverse changes in government regulation; and
● limitations on our ability
to borrow additional amounts for expenses, capital expenditures, acquisitions, debt service requirements, execution of our strategy
and other purposes and other disadvantages compared to our competitors who have less debt.
As
indicated in the accompanying financial statements, at December 31, 2021 we had cash of $1,369,047 outside of our trust account and working
capital of $1,198,719. Further, we expect to continue to incur significant costs in the pursuit of our acquisition plans. We cannot assure
you that our plans to raise capital or to complete our initial business combination will be successful. These factors, among others,
raise substantial doubt about our ability to continue as a going concern.
Results
of Operations
For
the period from March 23, 2021 (Inception) through December 31, 2021, we had a net loss of $113,693 of formation and operating costs.
Our
business activities from inception to December 31, 2021 consisted primarily of our formation and completing our IPO, and since the offering,
our activity has been limited to identifying and evaluating prospective acquisition targets for a Business Combination.
Liquidity
and Capital Resources
Our liquidity needs have been satisfied prior to the completion of this offering through $25,000 paid by the sponsor to cover certain of our offering and formation costs in exchange for the issuance of the founder shares to our sponsor and up to $300,000 in loans from our sponsor under an unsecured promissory note. As of December 31, 2021, there were no borrowings under the promissory note. The net proceeds from (1) the sale of the units in the offering and the over-allotment, after deducting payment of accrued offering expenses of approximately $712,588 and underwriting commissions of $4,000,000, excluding deferred underwriting commissions of $7,000,000 and (2) the sale of the private placement warrants for a purchase price of $10,000,000 was $205,287,412. Of this amount, $204,000,000 was deposited into the trust account. The funds in the trust account will be invested only in U.S. government treasury bills with a maturity of 185 days or less or in money market funds investing solely in U.S. Treasuries. The remaining $1,287,412 will not be held in the trust account.
We
intend to use substantially all of the funds held in the trust account, including any amounts representing interest earned on the trust
account (which interest shall be net of taxes payable and excluding deferred underwriting commissions) to complete our initial business
combination. We may withdraw interest to pay taxes, if any. Our annual income tax obligations will depend on the amount of interest and
other income earned on the amounts held in the trust account. We expect the interest earned on the amount in the trust account will be
sufficient to pay our taxes. We expect the only taxes payable by us out of the funds in the trust account will be income and franchise
taxes, if any. To the extent that our ordinary shares or debt is used, in whole or in part, as consideration to complete our initial
business combination, the remaining proceeds held in the trust account will be used as working capital to finance the operations of the
target business or businesses, make other acquisitions and pursue our growth strategies.
Prior
to the completion of our initial business combination, we will have available to us $1,287,412 of proceeds held outside the trust account.
We will use these funds primarily to identify and evaluate target businesses, perform business due diligence on prospective target businesses,
travel to and from the offices, plants or similar locations of prospective target businesses or their representatives or owners, review
corporate documents and material agreements of prospective target businesses, structure, negotiate and complete a business combination,
and to pay taxes to the extent the interest earned on the trust account is not sufficient to pay our taxes.
In
order to fund working capital deficiencies or finance transaction costs in connection with an intended initial business combination,
our sponsor or an affiliate of our sponsor or certain of our directors and officers may, but are not obligated to, loan us funds as may
be required. If we complete our initial business combination, we may repay such loaned amounts out of the proceeds of the trust account
released to us. Otherwise, such loans may be repaid only out of funds held outside the trust account. In the event that our initial business
combination does not close, we may use a portion of the working capital held outside the trust account to repay such loaned amounts but
no proceeds from our trust account would be used to repay such loaned amounts. Up to $2,000,000 of such loans may be convertible into
warrants at a price of $1.00 per warrant at the option of the lender. The warrants would be identical to the private placement warrants
issued to our sponsor. The terms of such loans, if any, have not been determined and no written agreements exist with respect to such
loans. We do not expect to seek loans from parties other than our sponsor or an affiliate of our sponsor as we do not believe third parties
will be willing to loan such funds and provide a waiver against any and all rights to seek access to funds in our trust account.
We expect our primary liquidity requirements during that period to include approximately $300,000 for legal, accounting, due diligence, travel and other expenses in connection with any business combinations; $135,000 for legal and accounting fees related to regulatory reporting requirements; $59,500 for continued exchange listing fees; $270,000 for office space, administrative and support services; $540,000 for directors and officers insurance premiums and approximately $45,000 for general working capital that will be used for miscellaneous expenses and reserves net of estimated interest income.
These
amounts are estimates and may differ materially from our actual expenses. In addition, we could use a portion of the funds not being
placed in trust to pay commitment fees for financing, fees to consultants to assist us with our search for a target business or as a
down payment or to fund a “no-shop” provision (a provision designed to keep target businesses from “shopping”
around for transactions with other companies or investors on terms more favorable to such target businesses) with respect to a particular
proposed business combination, although we do not have any current intention to do so. If we entered into an agreement where we paid
for the right to receive exclusivity from a target business, the amount that would be used as a down payment or to fund a “no-shop”
provision would be determined based on the terms of the specific business combination and the amount of our available funds at the time.
Our forfeiture of such funds (whether as a result of our breach or otherwise) could result in our not having sufficient funds to continue
searching for, or conducting due diligence with respect to, prospective target businesses.
We do not believe we will need to raise additional funds following this offering in order to meet the expenditures required for operating our business. However, if our estimates of the costs of identifying a target business, undertaking in-depth due diligence and negotiating an initial business combination are less than the actual amount necessary to do so, we may have insufficient funds available to operate our business prior to our initial business combination. Moreover, we may need to obtain additional financing either to complete our initial business combination or because we become obligated to redeem a significant number of our public shares upon completion of our initial business combination, in which case we may issue additional securities or incur debt in connection with such business combination.
Related
Party Transactions
On
April 3, 2021, our sponsor paid $25,000 to cover certain of our offering and formation costs in exchange for the issuance of 7,187,500
founder shares to our sponsor, or approximately $0.003 per share. In November 2021, our sponsor surrendered an aggregate of 2,156,250
founder shares for no consideration, thereby reducing the aggregate number of founder shares outstanding to 5,031,250. On December 22, 2021 our sponsor surrendered an additional 31,250 upon the partial exercise of the underwriter’s over-allotment option, thereby
reducing the aggregate number of founder shares to 5,000,000 and resulting in an effective purchase price paid for the founder shares
of approximately $0.005 per share. The purchase price of the founder shares was determined by dividing the amount of cash contributed
to the company by the number of founder shares issued. Our initial shareholders collectively own 20% of our issued and outstanding shares.
We
have entered into a support services agreement pursuant to which we will also pay our sponsor a total of $15,000 per month for office
space, administrative and support services. Upon completion of our initial business combination or our liquidation, we will cease paying
these monthly fees.
Our
sponsor, directors and officers, or any of their respective affiliates, will be reimbursed for any out-of-pocket expenses incurred in
connection with activities on our behalf such as identifying potential target businesses and performing due diligence on suitable business
combinations. Our audit committee will review on a quarterly basis all payments that were made by us to our sponsor, directors, officers
or our or any of their respective affiliates and will determine which expenses and the amount of expenses that will be reimbursed. There
is no cap or ceiling on the reimbursement of out-of-pocket expenses incurred by such persons in connection with activities on our behalf.
Our
sponsor agreed to loan us up to $300,000 under an unsecured promissory note to be used for a portion of the expenses of the offering.
These loans were non-interest bearing, unsecured and were due at the earlier of December 31, 2021 and the closing of this offering. These
loans were repaid upon completion of the offering. As of December 31, 2021, there were no borrowings under the promissory note.
In
addition, in order to finance transaction costs in connection with an intended initial business combination, our sponsor or an affiliate
of our sponsor or certain of our directors and officers may, but are not obligated to, loan us funds as may be required. If we complete
our initial business combination, we may repay such loaned amounts out of the proceeds of the trust account released to us. Otherwise,
such loans may be repaid only out of funds held outside the trust account. In the event that our initial business combination does not
close, we may use a portion of the working capital held outside the trust account to repay such loaned amounts but no proceeds from our
trust account would be used to repay such loaned amounts. Up to $2,000,000 of such loans may be convertible into warrants at a price
of $1.00 per warrant at the option of the lender. The warrants would be identical to the private placement warrants issued to our sponsor.
The terms of such loans, if any, have not been determined and no written agreements exist with respect to such loans. We do not expect
to seek loans from parties other than our sponsor or an affiliate of our sponsor as we do not believe third parties will be willing to
loan such funds and provide a waiver against any and all rights to seek access to funds in our trust account.
Our
sponsor purchased an aggregate of 10,000,000 private placement warrants at a price of $1.00 per warrant. The private placement warrants
are identical to the warrants sold as part of the units in the offering except that: (1) the private placement warrants will not
be redeemable by us; (2) the Class A ordinary shares issuable upon exercise of the private placement warrants may be subject to
certain transfer restrictions contained in the letter agreement by and among the company, the sponsor and any other parties thereto,
as amended from time to time; (3) the private placement warrants may be exercised by the holders on a cashless basis; and (4) the
holders of private placement warrants (including the ordinary shares issuable upon exercise of such warrants) are entitled to registration
rights.
Pursuant
to a registration rights agreement that we entered into with our initial shareholders prior to the closing of the offering, we may be
required to register certain securities for sale under the Securities Act. These holders, and holders of warrants issued upon conversion
of working capital loans, if any, are entitled under the registration rights agreement to make up to three demands that we register certain
of our securities held by them for sale under the Securities Act and to have the securities covered thereby registered for resale pursuant
to Rule 415 under the Securities Act. In addition, these holders have the right to include their securities in other registration
statements filed by us. However, the registration rights agreement provides that we will not be required to effect or permit any registration
or cause any registration statement to become effective until the securities covered thereby are released from their lock-up restrictions,
as described herein. We will bear the costs and expenses of filing any such registration statements. See “Principal Shareholders -
Registration Rights.”
Off-Balance Sheet Arrangements; Commitments and Contractual Obligations; Annual Results
As of December 31, 2021, we did not have any off-balance sheet arrangements as defined in Item 303(a)(4)(ii) of Regulation S-K and did not have any commitments or contractual obligations. No unaudited quarterly operating data is included in this prospectus as we have conducted no operations to date.
JOBS
Act
On
April 5, 2012, the JOBS Act was signed into law. The JOBS Act contains provisions that, among other things, relax certain reporting requirements
for qualifying public companies. We will qualify as an “emerging growth company” and under the JOBS Act will be allowed to
comply with new or revised accounting pronouncements based on the effective date for private (not publicly traded) companies. We are
electing to delay the adoption of new or revised accounting standards, and as a result, we may not comply with new or revised accounting
standards on the relevant dates on which adoption of such standards is required for non-emerging growth companies. As a result, our financial
statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective
dates.
Additionally,
we are in the process of evaluating the benefits of relying on the other reduced reporting requirements provided by the JOBS Act. Subject
to certain conditions set forth in the JOBS Act, if, as an “emerging growth company,” we choose to rely on such exemptions
we may not be required to, among other things: (1) provide an auditor’s attestation report on our system of internal controls
over financial reporting pursuant to Section 404 of the Sarbanes-Oxley Act; (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 Chief Executive Officer’s compensation to median employee compensation. These exemptions will apply for a period of five years
following the completion of this offering or until we are no longer an “emerging growth company,” whichever is earlier.
Item 7.A. Quantitative and Qualitative
Disclosure About Market Risk.
We
are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information otherwise
required under this item.

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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

---

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Item 8. Financial Statements and
Supplementary Data
This
information appears following Item 16 of this Report and is included herein by reference.

---

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
Item 9. Changes in and Disagreements With Accountants
on Accounting and Financial Disclosure.
None.
Item 9.A. Controls and Procedures.
Disclosure
Controls and Procedures
Evaluation
of Disclosure Controls and Procedures
Disclosure
controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our
reports filed or submitted under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified
in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed
to ensure that information required to be disclosed in company reports filed or submitted under the Exchange Act is accumulated and communicated
to management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.
As
required by Rules 13a-15 and 15d-15 under the Exchange Act, our Chief Executive Officer and Chief Financial Officer carried out an evaluation
of the effectiveness of the design and operation of our disclosure controls and procedures as of December 31, 2021. Based upon his evaluation,
our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e)
and 15d-15(e) under the Exchange Act) were effective.
Changes
in Internal Control over Financial Reporting
There
was no change in our internal control over financial reporting that occurred during the fiscal year ended December 31, 2021, covered
by this Annual Report on Form 10-K, that has materially affected, or is reasonably likely to materially affect, our
internal control over financial reporting.
Internal
Control over Financial Reporting
This
Annual Report on Form 10-K does not include a report of management’s assessment regarding internal control over financial reporting
or an attestation report of our registered public accounting firm due to a transition period established by rules of the SEC for newly
public companies.
Item 9.B. Other Information.
None.
Item 9.C. Disclosure Regarding Foreign Jurisdictions
that Prevent Inspection.
Not
Applicable.
Part III.

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ITEM 9A. CONTROLS AND PROCEDURES

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ITEM 9B. OTHER INFORMATION

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ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
Item
10. Directors, Executive Officers and Corporate Governance.
Our
current directors and executive officer are as follows:
Name
Age
Title
Craig E. Barnett
Chief Executive
Officer and Chairman
Terry Duddy
Vice Chairman and Director
Martin F. Lewis
Managing Director and
Chief Financial Officer
Scott M. Napolitano
Managing Director
James E. Lieber
Director
Mary C. Tanner
Director
Laura A. Weil
Director
Craig
E. Barnett has been our Chairman and Chief Executive Officer since May 2021. Mr. Barnett has been the Chief Executive
Officer of Meadow Lane since 2014 and its associated broker-dealer and predecessor entities since inception and established and
manages the global investment team. Mr. Barnett has over 35 years of experience in investment banking, private equity and corporate
development and is responsible for Meadow Lane’s partnerships with financing and investment firms. Mr. Barnett has advised
clients, pursued investments and overseen corporate development and finance activities with aggregate values exceeding $60 billion
primarily in the consumer sectors of the global economy in the United States, Europe and Asia. In addition, Mr. Barnett has
been highly active in corporate development, financing and acquisitions for GUS, Experian, Burberry, Argos, Arcade and Shaklee. Previously,
Mr. Barnett was a senior executive in private equity and investment banking. He was a Managing Director with Blackstone, a Managing
Director with The Bear Stearns Companies, Inc. and a Managing Director with PJ Solomon. Earlier in his career, Mr. Barnett
was a Vice President at Lehman Brothers, in London, Tokyo and New York. Mr. Barnett, a graduate of the Wharton School, is active
in a number of charitable and community organizations. Mr. Barnett was selected to serve on our board of directors due to his over
35 years of experience in corporate development, financing transactions and mergers and acquisitions.
Terry
Duddy has been our Vice Chairman and a member of our board of directors since May 2021. Mr. Duddy has over 30 years
of leadership experience with public companies and is a seasoned Chief Executive and digital commerce pioneer. Mr. Duddy has also
worked with Meadow Lane principals for over 20 years. Mr. Duddy was a Director and member of the Executive Committee of GUS
from 1998 to 2006, having joined as the Chief Executive Officer of Argos. Mr. Duddy was also responsible for the pan-European home
shopping division of GUS that, though loss making, was eventually divested for over £800 million. Mr. Duddy was furthermore
a member of the GUS board of directors’ Demerger Committee that presided over the demerger process of GUS that included the successful
initial public offerings of Burberry, Experian and Home Retail Group. As Chief Executive Officer of Argos and its successor independent
entity, Home Retail Group, from 1998 to 2014, Mr. Duddy guided the business through both the extensive digital transformation of
the industry as well as the downturn of 2009. Argos was the UK’s first multichannel retailer with its e-commerce site and
home delivery service launching in 1999 with over 20,000 product lines and a considerable private label brand. Mr. Duddy managed
a $2 billion supply chain sourced from China, incubated emerging products, created new marketing technologies including the now
ubiquitous and innovative “Click & Collect” sale and mentored a new generation of managers now in industry leadership
positions. Most recently, Mr. Duddy was first Senior Independent Director and then Interim Board Chairman of Debenhams plc, which
he managed through administration, secured financing for a successful reorganization and recruited a new Board. Mr. Duddy has been
a member of True Capital Management’s advisory board since 2014, is the Chairman of London Marathon Events Ltd and is or has been
a non-executive director of a number of other companies including Hammerson plc and Majid Al Futtaim Properties LLC. Mr. Duddy
was selected to serve on our board of directors due to his lengthy and comprehensive experience in public company governance as both
a director and an executive officer.
Martin
F. Lewis has been our Chief Financial Officer and one of our Managing Directors since May 2021. Mr. Lewis has over
35 years of leadership experience in investment banking. He is the founder and Managing Principal, since 2014, of Gower Advisers,
a financial advisory boutique in New York. He has also served as a Managing Principal of Meadow Lane since 2014. Previously, Mr. Lewis
was a Managing Director with Greenhill, a founding member of Miller, Buckfire Lewis & Co (now Miller Buckfire), a Managing Director
of Wasserstein Perella and a Managing Director of Blackstone. Mr. Lewis was also associated with Chemical Bank in London and New York
and with NM Rothschild in London and Mexico. Mr. Lewis qualified as a Chartered Accountant in the UK and graduated with an M.A.
from Oxford University.
Scott
M. Napolitano has been one of our Managing Directors since May 2021. Mr. Napolitano has over 20 years of experience
in investment banking acting as strategic and capital advisor to companies and private equity firms, principally in the healthcare and
consumer sectors, evaluating mergers, acquisitions and strategic and financing alternatives. Mr. Napolitano is Managing Member of
Scott Michael Partners LLC, an advisory and investment firm he founded in 2020 with a focus on healthcare and technology. Prior to founding
Scott Michael Partners LLC, Mr. Napolitano served as Managing Director with Nomura Securities International from 2014 to 2020 where
he was Head of MedTech Investment Banking and Healthcare M&A. Previously, he was a Managing Principal with Meadow Lane. Mr. Napolitano
has also held senior investment banking positions with PJ Solomon, where he served as Managing Director and with The Goldman Sachs Group,
Inc. and J.P. Morgan Chase & Co., where he served as Vice President. Mr. Napolitano is a graduate of Columbia University.
James
E. Lieber has served as one of our directors since December 2021. Mr. Lieber has more than 25 years of experience
in the strategic management of complex international projects and situations for multi-national corporations, investment funds,
organizations and high net-worth individuals in Europe and the United States. Mr. Lieber is Founder and President of Lieber
Strategies, a consultancy based in Paris. Prior to founding Lieber Strategies in 2005, Mr. Lieber served from 1997 to 2004 as Director
of Corporate Affairs at LVMH, working with its chairman, Bernard Arnault, and his executive committee on major strategic projects. Mr. Lieber
directed LVMH’s strategy in several multi-billion-dollar transactions and business conflicts and managed LVMH’s interests
in international trade disputes and European competition clearance situations and other government relations matters. Before joining
LVMH, Mr. Lieber practiced law with Cleary, Gottlieb, Steen & Hamilton LLP, where he worked in New York on international
securities offerings, privatizations and real estate transactions, and in Paris representing clients in cross-border acquisitions
and joint ventures in the media, luxury goods and pharmaceuticals sectors. Mr. Lieber is a director of numerous companies, including
LVMH Moet Hennessy Louis Vuitton Inc., DFS Group and Gabriel Resources Ltd., as well as of Stanhope Capital Group, a private wealth manager
with offices in New York, London, Geneva, Paris, Philadelphia and Palm Beach. He is also a director of the French-American Foundation
and a member of Panthera’s Conservation Council. Mr. Lieber is an attorney admitted to practice in the State of New York
and a member of the Council on Foreign Relations and the Global Advisory Council of the Woodrow Wilson Center for International Scholars.
Mr. Lieber holds a Juris Doctor degree cum laude from Northwestern University School of Law in Chicago, Illinois, where he was a
member of the Order of the Coif, and a Master in Public Policy from Harvard University’s Kennedy School of Government, in Cambridge,
Massachusetts. He received his Bachelor of Arts from Wesleyan University in Middletown, Connecticut, with honors in art history. Mr. Lieber
was selected to serve on our board of directors due to his extensive experience as a strategic advisor to multinational businesses and
his experience as a board member of public and private companies.
Mary
C. Tanner has served as one of our directors since December 2021. Ms. Tanner has more than 30 years of leadership
experience in investment banking and has served as a director on numerous private and public companies. Ms. Tanner is Senior Managing
Director of ELSP, of which she is a co-founder. Ms. Tanner specializes in healthcare investment and strategic advisory work, including
mergers and acquisitions, licensing, corporate minority strategic investments and fund raising. Ms. Tanner is also an active venture
capital investor. Before founding ELSP with her husband and long standing business partner, Frederick Frank, Ms. Tanner held leadership
positions for over 20 years in investment banking at Lehman Brothers, Bear Stearns and PJ Solomon. Ms. Tanner has directed
over 500 mergers and acquisitions, over 130 initial public offerings and hundreds of financings and is highly experienced in mergers
involving spinoffs of public companies. Ms. Tanner has significant expertise in life sciences, traditional pharmaceutical industries
and consumer healthcare. Advisory clients of Ms. Tanner have included Pfizer Inc., Block Drug, Amgen Inc., Rhône-Poulenc S.A.,
Marion Merrell Dow, Inc., BASF SE, Sanofi S.A., Revlon, Inc., Fabergé and L’Oréal S.A. Ms. Tanner
was a 10-year member of the board of directors of Lineagen, Inc., a molecular diagnostic company, which was merged with Bionano
Genomics, Inc. in 2021, and she was Chair of its Audit and Compliance Committee. As a member of the board of directors of Genticel, S.A.,
an immune oncology company in France, she assisted in merging the company with Genkyotex, a Swiss/French publicly listed company, in
a cross border transaction with Calliditas Therapeutics AB, a Swedish, Nasdaq-listed company. Previously, for a decade, she served
on the board of directors of Evotec SE, a German company which is one of the largest companies in early stage contract research organization
research. Ms. Tanner previously served on the board of directors of the consumer products company Block Drug prior to its sale to
GlaxoSmithKline plc.
Ms. Tanner
received a B.A. magna cum laude from Harvard University. She serves on the Advisory Board of the Yale School of Management and is an
advisor to the Blavatnik Fund for Innovation at Yale and the Yale Center for Biomedical Innovation and Technology. Ms. Tanner was
selected to serve on our board of directors due to her extensive experience directing mergers and acquisitions and serving on public
company boards of directors.
Laura
A. Weil has served as one of our directors since December 2021. Ms. Weil has over 25 years of corporate leadership
experience. Ms. Weil has been an independent director of Carnival Corporation since 2007 and is a member of the audit, compliance
and compensation committees. She is also an independent director of Global Fashion Group, SA since 2019. She previously served as a Director
of Christopher & Banks Corporation. Ms. Weil is the Founder and has been the Managing Partner of Village Lane Advisory
LLC, which specializes in providing executive and strategic consulting services to retailers as well as private equity firms, since 2015.
Previously, Ms. Weil was the Executive Vice President and Chief Operating Officer of New York & Company, Inc., the
Chief Executive Officer of Ashley Stewart LLC, the Chief Executive Officer of Urban Brands, Inc., the Chief Operating Officer of AnnTaylor
Stores Corporation, the Chief Financial Officer of American Eagle Outfitters, Inc., and the Vice President Finance and CFO Credit Operations
for Macy’s Inc. Ms. Weil was also a senior executive with investment banking firms including Oppenheimer and Lehman Brothers.
Ms. Weil received a B.A. in Art History and Government from Smith College and an MBA from Columbia University Business School. Ms. Weil
was selected to serve on our board of directors due to her extensive financial expertise and substantial experience in public company
governance as a director and an executive officer.
Advisory
Board
In
addition to our team described above, the following individuals serve on our advisory board:
Victor
J. Barnett has considerable experience as a successful investor in and leader of multiple global businesses. Mr. Barnett
was a Director and member of the Executive Committee directing the affairs of GUS for over 20 years. Mr. Barnett also served
as the Executive Chairman of Burberry and was the chief visionary for its operational reorganization and transformation. Mr. Barnett
also led the global expansion, via $2.7 billion of acquisitions, of Experian. Mr. Barnett was previously a Director of Revlon
and of various other private companies.
David
C. Blatte has over 30 years of investment banking and private equity investing experience in the consumer and retail industry
sectors. He is also a seasoned operating executive in the pet industry. He is the Chairman of Worldwise, Inc., one of the five largest
pet accessory companies in the U.S., and was the Founder and CEO of Quaker Pet Group, one of Worldwise’s operating businesses.
Mr. Blatte is a former Partner at Centre Partners, a former Partner at Catterton Partners, and a former Managing Director at Donaldson
Lufkin & Jenrette Securities Corp. He holds a B.S. from the Wharton School of Business of the University of Pennsylvania.
Noah
Gottdiener has 35 years of corporate leadership and investment banking experience. Mr. Gottdiener is the Executive
Chairman of Kroll, formerly Duff & Phelps Corp., and chairs Kroll’s board of directors. He served as Chief Executive Officer
and Chairman of the Board from 2004 to 2020. During that time, revenue increased from $30 million in 2004 to over $1 billion.
Kroll has nearly 5,000 professionals in 30 countries and territories around the world. Mr. Gottdiener guided Kroll through a series
of acquisitions, an initial public offering and a subsequent going private transaction. In April 2020, Mr. Gottdiener led Kroll
through a $4.2 billion acquisition by a global investor consortium. Previously, Mr. Gottdiener was a Partner with
Thomas Weisel Partners and Furman Selz LLC, and a Managing Director at Lehman Brothers Holdings Inc., where he began his career. Mr. Gottdiener
is a member of the Council on Foreign Relations and sits on the Board of Trustees of the National Outdoor Leadership School (NOLS). He
is a member of the Black Rock Forest Consortium Leadership Council and on the Board of Directors of AZTherapies. He is a former member
of the board of trustees of The Brearley School and the Princeton School of Public and International Affairs.
Brandon
Ralph is the Founder and Chief Executive Officer of The Unquantifiable, a marketing services consultancy. He has over 20 years
of experience navigating consumer content distribution and consumption behavior as a creative leader in omni-channel content-concentric marketing
strategies. Mr. Ralph is a Founder and, for seventeen years, was the Chief Creative Officer of Code and Theory, an independent digital
first creative agency. At Code and Theory, Mr. Ralph led the creative teams for over 70 fashion, lifestyle, media, and entertainment
brands for publishers, including Vice, NBC Olympics, The Huffington Post, Bloomberg, and The Verge. He has also been a trusted creative
collaborator for Anna Wintour, Arianna Huffington, Tina Brown, David Carey and Tomas Maier. His unique ability to learn customer behaviors
and amplify brands has afforded him the opportunity to deliver award-winning strategies across a broad spectrum of industries. Mr. Ralph’s
clients have included Bottega Venetta, Hermes, Burger King and Dr Pepper Snapple Group. Mr. Ralph has also served as the Chief Experience
Officer and Chief Creative officer of Equinox Fitness Holdings and as the Chief Creative Officer of NJOY.
Carlos
Rohm has been Chief Executive Officer of LCA Capital, a family office with ties to Mexico, since 2007. Previously, Mr. Rohm
was a Principal of JPMorgan Partners. Mr. Rohm has been a director of and is a member of the Operating Committee of Grupo Aeroportuario
del Pacifico. He is also a director of FIBRA Storage and Liv Capital Acquisition Corp., a special purpose acquisition company.
Ronald
Stern is a highly experienced marketing and operations executive who has also been actively involved in evaluating and pursuing
investment opportunities with Meadow Lane. Mr. Stern was the President and a long-time executive of SlimFast prior to its sale
for $2 billion to Unilever PLC and subsequently served as a Consultant to Unilever. Mr. Stern is an active angel investor in
emerging companies and advises a number of consumer-facing and health oriented businesses.
Jonathan
H. Weis has over 30 years of corporate leadership experience. He has been the Chairman, President and Chief Executive Officer
of Weis Markets, a leading regional supermarket chain with over 23,000 employees and 197 stores, since 2014 and has served in executive
capacities with Weis Markets since 1989. Under the leadership of Mr. Weis, Weis Markets has expanded its operations significantly
both organically and via acquisition and has maintained its market position in a highly competitive environment. Mr. Weis has also
been responsible for establishing and implementing major strategic initiatives that reflect Weis Markets’ focus on understanding
continuously evolving consumer perspectives, optimizing organizational issues with respect to human capital and operational capabilities
and controlling, increasing and maximizing the considerable intellectual property associated with Weis Markets.
Our
advisory board members (i) assist us in sourcing potential business combination targets, (ii) provide their business insights
when we assess potential business combination targets and (iii) upon our request, provide their business insights as we work to
create additional value in the businesses that we acquire. In this regard, they fulfill some of the same functions as our board members.
However, our advisory board members do not perform board or committee functions, nor do they have any voting or decision making capacity
on our behalf. They are also not subject to the fiduciary requirements to which our board members are subject. We may modify or expand
our roster of advisory board members as we source potential business combination targets or create value in businesses that we may pursue
or acquire.
Director
Independence
Nasdaq
listing standards require that a majority of our board of directors be independent within one year of our Initial Public Offering. An
“independent director” is defined generally as a person other than an officer or employee of the company or its subsidiaries
or any other individual having a relationship which in the opinion of the company’s board of directors, would interfere with the
director’s exercise of independent judgment in carrying out the responsibilities of a director. We have three “independent
directors” as defined in the Nasdaq listing standards and applicable SEC rules. Our board has determined that each of James E.
Lieber, Mary C. Tanner and Laura A. Weil is an independent director under applicable SEC rules and the Nasdaq listing standards.
Our
independent directors have regularly scheduled meetings at which only independent directors are present.
Number,
Terms of Office and Election of Officers and Director
Our
board of directors consists of five members. Prior to our initial Business Combination, holders of our Founder Shares will have the right
to appoint all of our directors and remove members of our board of directors for any reason, and holders of our Public Shares will not
have the right to vote on the appointment of directors during such time. These provisions of our amended and restated memorandum and
articles of association may only be amended by a special resolution passed by the holders of a majority of at least 90% of our ordinary
shares attending and voting in a general meeting. Each of our directors will hold office for a two-year term. Subject to any other
special rights applicable to the shareholders, any vacancies on our board of directors may be filled by the affirmative vote of a majority
of the directors present and voting at the meeting of our board of directors or by a majority of the holders of our ordinary shares (or,
prior to our initial Business Combination, holders of our Founder Shares).
Our
officers are appointed by the board of directors and serve at the discretion of the board of directors, rather than for specific terms
of office. Our board of directors is authorized to appoint persons to the offices set forth in our amended and restated memorandum and
articles of association as it deems appropriate. Our amended and restated memorandum and articles of association provide that our officers
may consist of a Chairman, a Chief Executive Officer, a President, a Chief Operating Officer, a Chief Financial Officer, Vice Presidents,
a Secretary, Assistant Secretaries, a Treasurer and such other offices as may be determined by the board of directors.
Committees
of the Board of Directors
We
have established three standing committees - an audit committee, a compensation committee and a nominating and corporate governance
committee, each composed of independent directors. Each committee operates under a charter that was approved by our board of directors
and has the composition and responsibilities described below. The charter of each committee is available on our website.
Audit
Committee
The
members of our audit committee are Mary C. Tanner, James E. Lieber and Laura A. Weil. Mary C. Tanner serves as chair of the
audit committee.
Each
member of the audit committee is financially literate and our board of directors has determined that each of Mary C. Tanner, James E.
Lieber and Laura A. Weil qualifies as an “audit committee financial expert” as defined in applicable SEC rules and has accounting
or related financial management expertise.
We
have adopted an audit committee charter, which details the purpose and principal functions of the audit committee, including:
● assisting board oversight
of (1) the integrity of our financial statements, (2) our compliance with legal and regulatory requirements, (3) our
independent registered public accounting firm’s qualifications and independence, and (4) the performance of our internal
audit function and independent registered public accounting firm;
● the appointment, compensation,
retention, replacement, and oversight of the work of the independent registered public accounting firm and any other independent
registered public accounting firm engaged by us;
● pre-approving all
audit and non-audit services to be provided by the independent registered public accounting firm or any other registered public
accounting firm engaged by us, and establishing pre-approval policies and procedures;
● reviewing and discussing
with the independent registered public accounting firm all relationships the auditors have with us in order to evaluate their continued
independence;
● setting clear hiring policies
for employees or former employees of the independent registered public accounting firm;
● setting clear policies
for audit partner rotation in compliance with applicable laws and regulations;
● obtaining and reviewing
a report, at least annually, from the independent registered public accounting firm describing (1) the independent registered
public accounting firm’s internal quality-control procedures and (2) any material issues raised by the most recent
internal quality-control review, or peer review, of the audit firm, or by any inquiry or investigation by governmental or professional
authorities, within the preceding five years respecting one or more independent audits carried out by the firm and any steps taken
to deal with such issues;
● meeting to review and discuss
our annual audited financial statements and quarterly financial statements with management and the independent registered public
accounting firm, including reviewing our specific disclosures under “Item 7. Management’s Discussion and Analysis of
Financial Condition and Results of Operations”;
● reviewing and approving
any related party transaction required to be disclosed pursuant to Item 404 of Regulation S-K promulgated by the SEC prior
to us entering into such transaction; and
● reviewing with management,
the independent registered public accounting firm, and our legal advisors, as appropriate, any legal, regulatory or compliance matters,
including any correspondence with regulators or government agencies and any employee complaints or published reports that raise material
issues regarding our financial statements or accounting policies and any significant changes in accounting standards or rules promulgated
by the Financial Accounting Standards Board, the SEC or other regulatory authorities.
Compensation
Committee
The
members of our compensation committee are Laura A. Weil, James E. Lieber and Mary C. Tanner. Laura A. Weil serves as chair
of the compensation committee. We have adopted a compensation committee charter, which details the purpose and responsibility of the
compensation committee, including:
● reviewing and approving
on an annual basis the corporate goals and objectives relevant to our Chief Executive Officer’s compensation, evaluating our
Chief Executive Officer’s performance in light of such goals and objectives and determining and approving the remuneration
(if any) of our Chief Executive Officer based on such evaluation;
● reviewing and making recommendations
to our board of directors with respect to the compensation, and any incentive-compensation and equity-based plans that
are subject to board approval of all of our other officers;
● reviewing our executive
compensation policies and plans;
● implementing and administering
our incentive compensation equity-based remuneration plans;
● assisting management in
complying with our proxy statement and annual report disclosure requirements;
● approving all special perquisites,
special cash payments and other special compensation and benefit arrangements for our officers and employees;
● producing a report on executive
compensation to be included in our annual proxy statement; and
● reviewing, evaluating and
recommending changes, if appropriate, to the remuneration for directors.
The
charter also provides that the compensation committee may, in its sole discretion, retain or obtain the advice of a compensation consultant,
independent legal counsel or other adviser and is directly responsible for the appointment, compensation and oversight of the work of
any such adviser. However, before engaging or receiving advice from a compensation consultant, external legal counsel or any other adviser,
the compensation committee will consider the independence of each such adviser, including the factors required by Nasdaq and the SEC.
Nominating
and Corporate Governance Committee
The
members of our nominating and corporate governance committee are James E. Lieber, Mary C. Tanner, and Laura A. Weil. James E. Lieber
will serve as chair of the nominating and corporate governance committee. We have adopted a nominating and corporate governance committee
charter, which details the purpose and responsibilities of the nominating and corporate governance committee, including:
● identifying, screening
and reviewing individuals qualified to serve as directors, consistent with criteria approved by the board of directors, and recommending
to the board of directors candidates for nomination for election at the annual stockholder meeting or to fill vacancies on the board
of directors;
● developing and recommending
to the board of directors and overseeing implementation of our corporate governance guidelines;
● coordinating and overseeing
the annual self-evaluation of the board of directors, its committees, individual directors and management in the governance
of the Company; and
● reviewing on a regular
basis our overall corporate governance and recommending improvements as and when necessary.
The
charter also provides that the nominating and corporate governance committee may, in its sole discretion, retain or obtain the advice
of, and terminate, any search firm to be used to identify director candidates, and is directly responsible for approving the search firm’s
fees and other retention terms.
We
have not formally established any specific, minimum qualifications that must be met or skills that are necessary for directors to possess.
In general, in identifying and evaluating nominees for director, the board of directors considers educational background, diversity of
professional experience, knowledge of our business, integrity, professional reputation, independence, wisdom, and the ability to represent
the best interests of our shareholders. Prior to our initial Business Combination, holders of our Public Shares will not have the right
to recommend director candidates for nomination to our board of directors.
Code
of Ethics
We
have adopted a code of ethics and business conduct (our “Code of Ethics”) applicable to our directors, officers and employees.
We have filed a copy of our Code of Ethics as an exhibit to this Annual Report. We have also posted a copy of our Code of Ethics and
the charters of our audit committee, compensation committee and nominating and corporate governance committee on our website (PearlHAC.com)
under “Corporate Governance”. Our website and the information contained on, or that can be accessed through, the website
is not deemed to be incorporated by reference in, and is not considered part of, this Annual Report. You are able to review these documents
by accessing our public filings at the SEC’s web site at www.sec.gov. In addition, a copy of the Code of Ethics will be provided
without charge upon request from us. We intend to disclose any amendments to or waivers of certain provisions of our Code of Ethics in
a Current Report on Form 8-K.
Conflicts
of Interest
Under
Cayman Islands law, directors and officers owe the following fiduciary duties:
● 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;
● duty to exercise powers
for the purposes for which those powers were conferred and not for a collateral purpose;
● duty to not improperly
fetter the exercise of future discretion;
● duty to exercise powers
fairly as between different sections of shareholders;
● 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
● duty to exercise independent
judgment.
In
addition to the above, 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 amended and restated memorandum and articles of association or alternatively by
shareholder approval at general meetings.
Our
team, in their capacities as directors, officers or employees of our Sponsor or its affiliates or in their other endeavors, may choose
to present potential Business Combinations to the related entities described above, current or future entities affiliated with or managed
by our Sponsor, or third parties, before they present such opportunities to us, subject to his or her fiduciary duties under Cayman Islands
law and any other applicable fiduciary duties.
Certain
members of our team have fiduciary duties to Meadow Lane and to certain companies in which Meadow Lane has invested. These entities may
compete with us for acquisition opportunities. If these entities decide to pursue any such opportunity, we may be precluded from pursuing
such opportunities. None of the members of our team who are also employed by our Sponsor or its affiliates have any obligation to present
us with any opportunity for a potential Business Combination of which they become aware, subject to his or her fiduciary duties under
Cayman Islands law. Our officers, directors and members of our Advisory Board have agreed not to participate in the formation of, or
become an officer, director or strategic advisor of, any other special purpose acquisition company with a class of securities registered
under the Exchange Act without our prior written consent, which will not be unreasonably withheld.
Our
directors and officers presently have, and any of them in the future may have, additional, fiduciary or contractual obligations to other
entities pursuant to which such officer or director is or will be required to present a Business Combination opportunity to such entity.
Accordingly, if any of our directors or officers becomes aware of a Business Combination opportunity that is suitable for an entity to
which he or she has then-current fiduciary or contractual obligations, he or she may need to honor these fiduciary or contractual
obligations to present such Business Combination opportunity to such entity, or in the case of a non-compete restriction, may not
present such opportunity to us at all, subject to his or her fiduciary duties under Cayman Islands law. Our amended and restated memorandum
and articles of association provide that, to the fullest extent permitted by applicable law: (i) no individual serving as a director
or an officer shall have any duty, except and to the extent expressly assumed by contract, to refrain from engaging directly or indirectly
in the same or similar business activities or lines of business as us; and (ii) we renounce any interest or expectancy in, or in
being offered an opportunity to participate in, any potential transaction or matter which may be a corporate opportunity for any director
or officer, on the one hand, and us, on the other. Our Chairman intends to devote a majority of his time to our affairs, however, none
of our directors or officers are required to commit any specified amount of time to our affairs, and, accordingly, will have conflicts
of interest in allocating management time among various business activities, including identifying potential Business Combinations and
monitoring the related due diligence. See “Item 1.A. Risk Factors -Certain of our directors, officers and advisory board
members are now, and all of them may in the future become, affiliated with entities engaged in business activities similar to those intended
to be conducted by us and, accordingly, may have conflicts of interest in determining to which entity a particular business opportunity
should be presented.”
In
addition, our Sponsor, its members, our officers or our directors or their respective affiliates may be investors, or have other direct
or indirect interests, in a business with which we may enter into a Business Combination agreement and/or in certain funds or other persons
that own Public Shares or that may otherwise purchase our Class A ordinary shares in the public market.
We
do not believe, however, that the fiduciary duties or contractual obligations of our directors or officers will materially affect our
ability to identify and pursue Business Combination opportunities or complete our initial Business Combination.
Our
advisory board members are not under any obligation to source any potential opportunities for our initial Business Combination or refer
any such opportunities to our Company or provide any other services for our Company. Such advisors’ roles with respect to our Company
is expected to be primarily passive and advisory in nature. Our advisory board members may have fiduciary and/or contractual duties to
certain companies but do not have any fiduciary obligations to our Company. As a result, our advisory board members may have a duty to
offer Business Combination opportunities to certain other companies before our Company. Additionally, certain companies affiliated with
our advisory board members may enter into transactions with, provide goods or services to, or receive goods or services from an entity
with which we seek to complete our initial Business Combination. Transactions of these types may present a conflict of interest because
our advisory board members may directly or indirectly receive a financial benefit as a result of such transaction. See “Item 1.A.
Risk Factors -Our advisory board members are not under any obligation to source any potential opportunities for our initial
Business Combination or refer any such opportunities to our Company or provide any other services for our Company.”
Potential
investors should also be aware of the following potential conflicts of interest:
● Our Chairman intends to
devote a majority of his time to our affairs, however, none of our directors or officers are required to commit his or her full time
to our affairs and, accordingly, may have conflicts of interest in allocating his or her time among various business activities.
● In the course of their
other business activities, our directors and officers may become aware of investment and business opportunities that may be appropriate
for presentation to us as well as the other entities with which they are affiliated. Our management may have conflicts of interest
in determining to which entity a particular business opportunity should be presented.
● Pursuant to a letter agreement
entered into with us, our initial shareholders, directors and officers have agreed to waive their redemption rights with respect
to any Founder Shares and Public Shares held by them in connection with the consummation of our initial Business Combination. Additionally,
our initial shareholders have agreed to waive their redemption rights with respect to their Founder Shares if we fail to consummate
our initial Business Combination within 18 months (or up to 24 months if our Sponsor exercises its extension options) after
the closing of the Initial Public Offering. However, if our initial shareholders (or any of our directors, officers or affiliates)
acquire Public Shares, they will be entitled to liquidating distributions from the Trust Account with respect to such Public Shares
if we fail to consummate our initial Business Combination within the prescribed time frame. If we do not complete our initial Business
Combination within such applicable time period, the proceeds of the sale of the Private Placement Warrants held in the Trust Account
will be used to fund the redemption of our Public Shares, and the Private Placement Warrants will expire worthless. With certain
limited exceptions, pursuant to such letter agreement, our initial shareholders, directors and officers have agreed not to transfer,
assign or sell their Founder Shares until the earlier of: (1) one year after the completion of our initial Business Combination;
and (2) subsequent to our initial Business Combination (x) if the last reported sale price of our Class A ordinary
shares equals or exceeds $12.00 per share (as adjusted for share sub-divisions, share dividends, rights issuances, reorganizations,
recapitalizations and other similar transactions) for any 20 trading days within any 30-trading day period commencing at
least 120 days after our initial Business Combination or (y) the date on which we complete a liquidation, merger, share
exchange, reorganization or other similar transaction that results in all of our Public Shareholders having the right to exchange
their ordinary shares for cash, securities or other property. With certain limited exceptions, the Private Placement Warrants and
the ordinary shares underlying such warrants, will not be transferable, assignable or salable by our Sponsor until 30 days after
the completion of our initial Business Combination. Since our Sponsor and our team may directly or indirectly own ordinary shares
and warrants, our directors and officers may have a conflict of interest in determining whether a particular target business is an
appropriate business with which to effectuate our initial Business Combination.
● Our directors and officers
may negotiate employment or consulting agreements with a target business in connection with a particular Business Combination. These
agreements may provide for them to receive compensation following our initial Business Combination and, as a result, may cause them
to have conflicts of interest in determining whether to proceed with a particular Business Combination.
● Our directors and officers
may have a conflict of interest with respect to evaluating a particular Business Combination if the retention or resignation of any
such directors and officers was included by a target business as a condition to any agreement with respect to our initial Business
Combination.
The
conflicts described above may not be resolved in our favor.
Accordingly,
as a result of multiple business affiliations, our directors and officers have similar legal obligations relating to presenting business
opportunities meeting the above-listed criteria to multiple entities. Below is a table summarizing the entities to which our directors
and officers currently have fiduciary duties or contractual obligations:
Individual
Entity
Entity’s
Business
Affiliation
Craig E. Barnett
Meadow Lane Capital
Investments
Chief Executive Officer
Barnett & Partners
Advisors, LLC
Advisory services
Chief Executive Officer
Terry Duddy
Majid Al Futtaim Properties
LLC
Property Management
Non-Executive Director
Catch 22 Charity Ltd
Charity
Non-Executive Chair
London Marathon Events Ltd
Charity
Non-Executive Chair
Martin F. Lewis
Meadow Lane Capital
Investments
Managing Principal
MM Dillon & Co.
Advisory services
Managing Director
Scott M. Napolitano
Scott Michael Partners LLC
Advisory services
Managing Member
James E. Lieber
Lieber Strategies
Consulting
Founder and President
LVMH Moet Hennessy Louis
Vuitton Inc.
Consumer goods
Director
DFS Group
Consumer goods
Director
Gabriel Resources Ltd.
Mining
Director
Stanhope Capital Group
Wealth management
Director
Mary C. Tanner
EVOLUTION Life Sciences
Partners
Advisory services
Co-Founder and Senior
Managing Director
Laura
A. Weil
Carnival
Corporation
Global
Fashion Group, SA
Tourism
Consumer
goods
Director
Director
Village Lane Advisory LLC
Consulting
Founder
and Managing Partner
Accordingly,
if any of the above directors or officers become aware of a Business Combination opportunity which is suitable for any of the above entities
to which he or she has then-current fiduciary or contractual obligations, he or she will honor his or her fiduciary or contractual
obligations to present such Business Combination opportunity to such entity, and only present it to us if such entity rejects the opportunity,
subject to his or her fiduciary duties under Cayman Islands law. Our amended and restated memorandum and articles of association provide
that, to the fullest extent permitted by applicable law: (i) no individual serving as a director or an officer shall have any duty,
except and to the extent expressly assumed by contract, to refrain from engaging directly or indirectly in the same or similar business
activities or lines of business as us; and (ii) we renounce any interest or expectancy in, or in being offered an opportunity to
participate in, any potential transaction or matter which may be a corporate opportunity for any director or officer, on the one hand,
and us, on the other. We do not believe, however, that any of the foregoing fiduciary duties or contractual obligations will materially
affect our ability to identify and pursue Business Combination opportunities or complete our initial Business Combination.
We
are not prohibited from pursuing an initial Business Combination with a company that is affiliated with our Sponsor, directors or officers.
In the event we seek to complete our initial Business Combination with such a company, we, or a committee of independent and disinterested
directors, would obtain an opinion from an independent investment banking firm or another independent entity that commonly renders valuation
opinions that such an initial Business Combination is fair to our Company from a financial point of view. Unless we complete our initial
Business Combination with an affiliated entity, we are not required to obtain an opinion that the price we are paying is fair to our
Company from a financial point of view.
In
addition, our Sponsor or any of its affiliates may make additional investments in the Company in connection with the initial Business
Combination, although our Sponsor and its affiliates have no obligation or current intention to do so. If our Sponsor or any of its affiliates
elects to make additional investments, such proposed investments could influence our Sponsor’s motivation to complete an initial
Business Combination.
In
the event that we submit our initial Business Combination to our Public Shareholders for a vote, our initial shareholders, directors
and officers have agreed, pursuant to the terms of a letter agreement entered into with us, to vote any Founder Shares (and their permitted
transferees will agree) and Public Shares held by them in favor of our initial Business Combination.

---

ITEM 11. EXECUTIVE COMPENSATION
Item
11. Executive Compensation.
None
of our directors or officers have received any cash compensation for services rendered to us. Commencing on the date that our securities
are first listed on Nasdaq through the earlier of consummation of our initial Business Combination and our liquidation, we will pay our
Sponsor a total of $15,000 per month for office space, administrative and support services. Our Sponsor, directors and officers, or any
of their respective affiliates, will be reimbursed for any out-of-pocket expenses incurred in connection with activities on our
behalf such as identifying potential target businesses and performing due diligence on suitable Business Combinations. Our audit committee
will review on a quarterly basis all payments that were made by us to our Sponsor, directors, officers or our or any of their affiliates.
After
the completion of our initial Business Combination, directors or members of our team who remain with us may be paid consulting, management
or other compensation from the combined company. All compensation will be fully disclosed to shareholders, to the extent then known,
in the tender offer materials or proxy solicitation materials furnished to our shareholders in connection with a proposed Business Combination.
It is unlikely the amount of such compensation will be known at the time, because the directors of the post-combination business
will be responsible for determining executive officer and director compensation. Any compensation to be paid to our officers after the
completion of our initial Business Combination will be determined by a compensation committee constituted solely by independent directors.
We
are not party to any agreements with our directors and officers that provide for benefits upon termination of employment. The existence
or terms of any such employment or consulting arrangements may influence our management’s motivation in identifying or selecting
a target business, and we do not believe that the ability of our management to remain with us after the consummation of our initial Business
Combination should be a determining factor in our decision to proceed with any potential Business Combination.

---

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
Item
12. Security Ownership of
Certain Beneficial Owners and Management and Related Stockholder Matters.
The
following table sets forth information available to us at March 28, 2022 with respect to our ordinary shares held by:
● each person known by us
to be the beneficial owner of more than 5% of our outstanding ordinary shares;
● each of our executive officers
and directors; and
● all our executive officers
and directors as a group.
Unless
otherwise indicated, we believe that all persons named in the table have sole voting and investment power with respect to all ordinary
shares beneficially owned by them. The following table does not reflect record or beneficial ownership of the Private Placement Warrants
as these are not exercisable within 60 days of March 28, 2022.
Class
A
Ordinary Shares
Class
B
Ordinary Shares(1)
Beneficially
Owned
Approximate
Percentage of Class Issued and
Outstanding Ordinary Shares
Beneficially
Owned
Approximate
Percentage of Class Issued and
Outstanding Ordinary Shares
Name
and Address of Beneficial Owner(2)
Pearl
Holdings Sponsor LLC (our Sponsor)(4)
-
-
5,000,000
20.0 %
Craig
E. Barnett(4)
-
-
5,000,000
20.0 %
Terry
Duddy
-
-
-
-
Martin
F. Lewis
-
-
-
-
Scott
M. Napolitano
-
-
-
-
James
E. Lieber
-
-
-
-
Mary
C. Tanner
-
-
-
-
Laura
A. Weil
-
-
-
-
All
directors and officers as a group (7 individuals)
-
-
5,000,000
20.0 %
Millennium
Management LLC(5)
1,179,950
5.9 %
-
-
Adage
Capital Partners, L.P.(6)
1,500,000
7.5 %
-
-
Calamos
Market Neutral Income Fund, a series of Calamos Investment Trust(7)
1,000,000
5.0 %
-
-
* Less than one percent.
(1) Class B ordinary shares
will convert into Class A ordinary shares on a one-for-one basis, subject to adjustment, as described in the section entitled
“Description of Securities” in our prospectus filed with the SEC pursuant to Rule 424(b)(4) (File No. 333-261319).
(2) Unless otherwise noted,
the business address of each of the following entities or individuals is c/o Pearl Holdings Acquisition Corp, 767 Third Avenue, 11th
Floor, New York, New York 10017.
(3) Interests shown consist
solely of Founder Shares, classified as Class B ordinary shares. Such ordinary shares will convert into Class A ordinary
shares on a one-for-one basis, subject to adjustment, as described in the section of our prospectus filed with the SEC pursuant
to Rule 424(b)(4) (File No. 333-261319) entitled “Description of Securities.”
(4) Pearl Holdings Sponsor
LLC, our Sponsor, is the record holder of the 5,000,000 Founder Shares reported herein. The manager of our Sponsor is Craig E. Barnett.
By virtue of his control over our Sponsor, Craig E. Barnett may be deemed to beneficially own shares held by our Sponsor.
(5) Shares beneficially owned
are based on Schedule 13G filed with the SEC on February 2, 2022, by Millennium Management LLC, a Delaware limited liability company,
with respect to the Class A ordinary shares directly owned by it. As of the date thereof, the Millennium Management LLC may be deemed
to be the beneficial owner of the 1,179,950 Class A ordinary shares. The securities potentially beneficially owned by Millennium
Management LLC are held by entities subject to voting control and investment discretion by Millennium Management LLC and/or other
investment managers that may be controlled by Millennium Group Management LLC (the managing member of Millennium Management LLC)
and Mr. Englander (the sole voting trustee of the managing member of Millennium Group Management LLC). The foregoing should not be
construed in and of itself as an admission by Millennium Management LLC, Millennium Group Management LLC or Mr. Englander as to beneficial
ownership of the securities held by such entities. The address of Millennium Management LLC, as reported in the Schedule 13G is 399
Park Avenue, New York, New York 10022.
(6) Shares beneficially owned
are based on Schedule 13G filed with the SEC on December 27, 2021, by Adage Capital Partners, L.P., a Delaware limited partnership,
with respect to the Class A ordinary shares directly and indirectly owned by it. Adage Capital Partners, L.P. is indirectly controlled
by Robert Atchinson and Phillip Gross, each of whom may be deemed to beneficially own shares held by Adage Capital Partners, L.P.
As of the date thereof, Adage Capital Partners, L.P. may be deemed to be the beneficial owner of the 1,500,000 Class A ordinary shares.
The address of Adage Capital Partners, L.P., as reported in the Schedule 13G is 200 Clarendon Street, 52nd Floor, Boston, Massachusetts
02116.
(7) Shares beneficially owned
are based on Schedule 13G filed with the SEC on February 3, 2022, by Calamos Market Neutral Income Fund, a series of Calamos Investment
Trust (“Calamos”), with respect to the Class A ordinary shares directly owned by it. As of the date thereof, Calamos
may be deemed to be the beneficial owner of the 1,000,000 Class A ordinary shares. The address of Calamos, as reported in the Schedule
13G is 2020 Calamos Court, Naperville, IL 60563.
Our
initial shareholders beneficially own approximately 20.0% of the issued and outstanding ordinary shares and have the right to elect all
of our directors prior to our initial Business Combination as a result of holding all of the Founder Shares. Holders of our Public Shares
will not have the right to appoint any directors to our board of directors prior to our initial Business Combination. In addition, because
of their ownership block, our initial shareholders may be able to effectively influence the outcome of all other matters requiring approval
by our shareholders, including amendments to our amended and restated memorandum and articles of association and approval of significant
corporate transactions.

---

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Item
13. Certain Relationships and
Related Transactions, and Director Independence.
Founder
Shares
On
April 3, 2021, the Sponsor paid $25,000, or approximately $0.003 per share, to purchase an aggregate of 7,187,500 Class B ordinary
shares, par value $0.0001 per share. In November 2021, the Sponsor surrendered an aggregate of 2,156,250 Founder Shares for no consideration,
thereby reducing the aggregate number of Founder Shares outstanding to 5,031,250, resulting in an effective purchase price paid for the
Founder Shares of approximately $0.005 per share. On December 22, 2021, 2022, due to the partial exercise of the over-allotment option by the
underwriter of the Initial Public Offering, the Sponsor forfeited 31,250 Class B Ordinary Shares for no consideration, thereby reducing
the aggregate number of Founder Shares outstanding to 5,000,000.
The
initial shareholders have agreed not to transfer, assign or sell any of their Founder Shares until the earlier to occur of: (1) one
year after the completion of the initial Business Combination; or (2) subsequent to the initial Business Combination (i) if
the last reported sale price of the Class A ordinary shares equals or exceeds $12.00 per share (as adjusted for share sub-divisions,
share dividends, rights issuances, consolidations, reorganizations, recapitalizations and other similar transactions) for any 20 trading
days within any 30-trading day period commencing at least 150 days after the initial Business Combination or (y) the date
on which the Company completes a liquidation, merger, share exchange, reorganization or other similar transaction that results in all
of the Public Shareholders having the right to exchange their ordinary shares for cash, securities or other property. Any permitted transferees
would be subject to the same restrictions and other agreements of the initial shareholders with respect to any Founder Shares.
Private
Placement Warrants
Simultaneously
with the closing of our Initial Public Offering our Sponsor purchased an aggregate of 9,000,000 Private Placement Warrants, each exercisable
to purchase one Class A ordinary share at $11.50 per share, at a price of $1.00 per warrant, or $9,000,000 in the aggregate. Simultaneously
with the closing of the over-allotment, the Sponsor purchased an additional 1,000,000 Private Placement Warrants, for an aggregate of
$1,000,000.
A
portion of the proceeds from the Private Placement Warrants was added to the proceeds from the Initial Public Offering and deposited
in the Trust Account. If we do not complete a Business Combination within the Combination Period, the proceeds of the sale of the Private
Placement Warrants will be used to fund the redemption of our Public Shares (subject to the requirements of applicable law), and the
Private Placement Warrants will expire worthless.
Letter
Agreement
Our
Sponsor, officers and directors have entered into a letter agreement with us, pursuant to which they have agreed (A) to waive their
redemption rights with respect to any Founder Shares and Public Shares they hold in connection with the completion of our initial Business
Combination, (B) to waive their redemption rights with respect to any Founder Shares and Public Shares they hold in connection with
a shareholder vote to approve an amendment to our amended and restated certificate of incorporation to modify the substance or timing
of our obligation to allow redemption in connection with our initial Business Combination or to redeem 100% of our Public Shares if we
have not consummated an initial Business Combination within 18 months (or up to 24 months if our Sponsor exercises its extension
options) from the closing of our Initial Public Offering or with respect to any other provisions relating to shareholders’ rights
or pre-initial Business Combination activity and (C) to waive their rights to liquidating distributions from the Trust Account
with respect to any Founder Shares they hold if we fail to complete an initial Business Combination within 18 months (or up to 24 months
if our Sponsor exercises its extension options) from the closing of our Initial Public Offering or during any Extension Period, although
they will be entitled to liquidating distributions from the Trust Account with respect to any Public Shares they hold if we fail to complete
an initial Business Combination within such time period, and (iii) the Founder Shares are automatically convertible into Class A
ordinary shares concurrently with or immediately following the consummation of an initial Business Combination on a one-for-one basis,
subject to adjustment as described in our amended and restated certificate of incorporation. If we submit an initial Business Combination
to our Public Shareholders for a vote, our initial shareholders have agreed to vote their Founder Shares and any Public Shares purchased
during or after the Initial Public Offering in favor of the initial Business Combination.
Registration
Rights
The
holders of the Founder Shares, Private Placement Warrants and any warrants that may be issued on conversion of Working Capital Loans
(and any Class A ordinary shares issuable upon the exercise of the Private Placement Warrants or warrants issued upon conversion
of the Working Capital Loans and upon conversion of the Founder Shares) will be entitled to registration rights pursuant to a registration
rights agreement requiring the Company to register such securities for resale (in the case of the Founder Shares, only after conversion
to the Class A ordinary shares). The holders of these securities will be entitled to make up to three demands, excluding short form
registration demands, that we register such securities. In addition, the holders have certain “piggy-back” registration rights
with respect to registration statements filed subsequent to our completion of the initial Business Combination and rights to require
us to register for resale such securities pursuant to Rule 415 under the Securities Act. However, the registration rights agreement
provides that we will not be required to effect or permit any registration or cause any registration statement to become effective until
termination of the applicable lock-up period. We will bear the expenses incurred in connection with the filing of any such registration
statements.
Related
Party Notes
On
April 1, 2021, the Sponsor agreed to loan the Company up to $300,000 to be used for a portion of the expenses of the Initial Public
Offering. These loans are non-interest bearing, unsecured and were due at the earlier of December 31, 2021 or the closing of
the Initial Public Offering. The outstanding loan of $244,648 was repaid upon the closing of the Initial Public Offering out of the offering
proceeds not held in the Trust Account. As of December 31, 2021, the Company had no outstanding borrowings under the promissory note.
Administrative
Services Agreement
Commencing
on the date that the Company’s securities are first listed on the NASDAQ through the earlier of consummation of the initial Business
Combination and the liquidation, the Company has agreed to pay the Sponsor a total of $15,000 per month for office space, utilities,
administrative and support services. As of December 31, 2021, the Company accrued $8,709 for the administrative support services in Due
to Related Party.

---

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
Item
14. Principal Accounting Fees
and Services.
Fees
for professional services provided by our independent registered public accounting firm for the last two fiscal years include:
For
the
Year ended
December 31,
For
the
Year ended
December 31,
Audit
Fees(1)
$ 115,000
$ -
Audit-Related
Fees(2)
$ -
$ -
Tax
Fees(3)
$ -
$ -
All
Other Fees(4)
$ -
$ -
Total
$
$ -
(1) Audit Fees. Audit fees
consist of fees billed for professional services rendered for the audit of our year-end financial statements and services that are
normally provided by our independent registered public accounting firm in connection with statutory and regulatory filings.
(2) Audit-Related Fees. Audit-related
fees consist of fees billed for assurance and related services that are reasonably related to performance of the audit or review
of our year-end financial statements and are not reported under “Audit Fees.” These services include attest services
that are not required by statute or regulation and consultation concerning financial accounting and reporting standards.
(3) Tax Fees. Tax fees consist
of fees billed for professional services relating to tax compliance, tax planning and tax advice.
(4) All Other Fees. All other
fees consist of fees billed for all other services including permitted due diligence services related potential Business Combination.
Policy
on Board Pre-Approval of Audit and Permissible Non-Audit Services of the Independent Auditors
The
audit committee is responsible for appointing, setting compensation and overseeing the work of the independent auditors. In recognition
of this responsibility, the audit committee shall review and, in its sole discretion, pre-approve all audit and permitted non-audit services
to be provided by the independent auditors as provided under the audit committee charter.
Part IV.

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ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES
Item 15. Exhibits, Financial Statement
Schedules.
(a) The following documents
are filed as part of this Annual Report on Form 10-K: Financial Statements: See “Item 8. Index to Financial Statements and
Supplementary Data” herein.
(b) Exhibits: The exhibits
listed in the accompanying index to exhibits are filed or incorporated by reference as part of this Annual Report on Form 10-K.
No.
Description
of Exhibit
3.1(1)
Amended
and Restated Memorandum and Articles of Association of the Company.
4.1(1)
Warrant
Agreement, dated December 14, 2021, between the Company and Continental Stock Transfer & Trust Company, as warrant agent.
4.2*
Description of the Company’s
securities.
10.1(1)
Letter
Agreement, dated December 14, 2021, among the Company, the Sponsor and the Company’s officers and directors.
10.2(1)
Investment
Management Trust Agreement, dated December 14, 2021, between the Company and Continental Stock Transfer & Trust Company, as trustee.
10.3(1)
Registration
Rights Agreement, dated December 14, 2021, among the Company, the Sponsor and certain other security holders named therein.
10.4(1)
Private
Placement Warrants Purchase Agreement, dated December 14, 2021, between the Company and the Sponsor.
10.5(1)
Support
Services Agreement, dated December 14, 2021, between the Company and the Sponsor.
10.6*
Indemnity Agreement, dated
December 14, 2021, between the Company and Craig E. Barnett
10.7*
Indemnity Agreement, dated
December 14, 2021, between the Company and Terry Duddy
10.8*
Indemnity Agreement, dated
December 14, 2021, between the Company and Martin F. Lewis
10.9*
Indemnity Agreement, dated
December 14, 2021, between the Company and Scott M. Napolitano
10.10*
Indemnity Agreement, dated
December 14, 2021, between the Company and James E. Lieber
10.11*
Indemnity Agreement, dated
December 14, 2021, between the Company and Mary C. Tanner
10.12*
Indemnity Agreement, dated
December 14, 2021, between the Company and Laura A. Weil
14.1*
Code
of Ethics and Business Conduct of Pearl Holdings Acquisition Corp.
31.1*
Certification
of Principal Executive Officer Pursuant to Securities Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted Pursuant to Section
302 of the Sarbanes-Oxley Act of 2002.
31.2*
Certification
of Principal Financial and Accounting Officer Pursuant to Securities Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted Pursuant
to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*
Certification
of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
32.2*
Certification
of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
101.INS*
XBRL Instance Document.
101.SCH*
XBRL Taxonomy Extension
Schema Document.
101.CAL*
XBRL Taxonomy Extension
Calculation Linkbase Document.
101.DEF*
XBRL Taxonomy Extension
Definition Linkbase Document.
101.LAB*
XBRL Taxonomy Extension
Label Linkbase Document.
101.PRE*
XBRL Taxonomy Extension
Presentation Linkbase Document.
* Filed herewith.
** Furnished herewith.
(1) Incorporated by reference
to the Company’s Current Report on Form 8-K filed on December 17, 2021.