EDGAR 10-K Filing

Company CIK: 1822928
Filing Year: 2021
Filename: 1822928_10-K_2021_0001213900-21-013817.json

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ITEM 1. BUSINESS
Item 1.
Business
General
We
are a blank check company incorporated as a Cayman Islands exempted company (the “Company” or “Empower”)
for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination
with one or more businesses or entities (the “initial business combination”). We have reviewed a number of opportunities
to enter into an initial business combination with an operating business, but we are not able to determine at this time whether
we will complete an initial business combination with any of the target businesses that we have reviewed or with any other target
business. The Company will not generate any operating revenues until after the completion of the initial business combination,
at the earliest. The Company will generate non-operating income in the form of interest income from the proceeds derived from
the Company’s initial public offering (the “Initial Public Offering”).
The
registration statement for the Initial Public Offering became effective on October 6, 2020. On October 9, 2020, the Company consummated
the Initial Public Offering of 25,000,000 units (the “units”) at $10.00 per unit, generating gross proceeds of $250,000,000.
Simultaneously
with the closing of the Initial Public Offering, the Company consummated the sale of 4,666,667 warrants (the “private placement
warrants”) at a price of $1.50 per private placement warrant in a private placement to Empower Sponsor Holdings LLC (the
“sponsor”), generating gross proceeds of $7,000,000.
A
total of $250,000,000, consisting of $245,000,000 of net proceeds from the Initial Public Offering (which amount includes $8,750,000
in the form of deferred underwriting commissions) and $5,000,000 of proceeds from the sale of the private placement warrants,
was placed in a U.S.-based trust account with Continental Stock Transfer & Trust Company acting as trustee.
Our
units began trading on October 9, 2020 on the New York Stock Exchange (the “NYSE”) under the symbol EMPW.” On
November 27, 2020, we announced that the holders of the Company’s units may elect to separately trade the Class A ordinary
shares and warrants included in the units. Each unit consists of one Class A ordinary share and one-third of one warrant
to purchase one Class A ordinary share. Any units not separated will continue to trade on the New York Stock Exchange (“NYSE”)
under the symbol “EMPW.U”. Any underlying Class A ordinary shares and warrants that are separated will trade on NYSE
under the symbols “EMPW” and “EMPW WS,” respectively.
Business
Strategy
The
broader consumer sector, inclusive of the overall shopping and purchasing journey as well as products, services and experiences,
has undergone unprecedented changes. In this evolving landscape, the opportunity to foster and build companies that address these
shifting consumer preferences and utilize platforms most relevant to these new consumers requires speed, agility and a clear focus
on engaging, inspiring and commercially connecting with the customer. These substantial demographic, social, economic and behavioral
shifts at the consumer level have resulted in a confluence of opportunities unlike anything seen in recent decades.
Our
focus will be to acquire a consumer business that has a track record of proven financial performance, differentiation in its brand
and offering, and a loyal customer base, yet would benefit from our operational expertise, networks, experienced team and capital
to further enhance performance and drive continued growth. In addition to economic upside and market opportunities, proven leadership
and access to capital, we believe that core values, transparency, social impact and relevance to today’s evolving communities
and consumer groups is equally paramount.
We
intend to capitalize on several macro-level themes that are reshaping consumer behavior and how consumer businesses attain success
in the new market reality:
● How
brands are built and what is expected of them is changing: traditional notions of branding
and status have evolved to include purpose and a sense of community, the use of business
as a powerful force for good, and sustainability.
● Products,
services and experiences are being evolved and co-created in a manner requiring dramatic
shifts in businesses’ approaches to innovation and development.
● The
consumer journey is more multi-faceted than ever: speed, agility and relentless focus,
paired with exceptional products, services, experiences, innovation and branding are
necessary to drive customer acquisition, assessment, engagement, purchase intent and,
ultimately, retention.
● Channels,
traffic patterns and go-to-market options have evolved to address an increasingly mobile
and channel-agnostic consumer.
● Digital
acumen is a requirement for success: acceleration of digital engagement will create a
path for more intimate connections with consumers, communities and the ability to provide
both personalization and convenience.
● The
shift towards healthy, active and sustainable lifestyles is permanent: a holistic approach
to health, wellness and hygiene will continue to garner greater share of the consumer
wallet.
● Operational
excellence is a strategic weapon: agility to shift supply chains and operational execution
will be enabled via a well-organized infrastructure that matches consumer demand requirements
and functions in lockstep with the front-end of the business. Infrastructure and an ability
to execute flawlessly are critical tools.
● “Global”
now also means “local”: the ability to support market localization, from
consumer engagement to supply chain, is an opportunity across all categories.
As
lifelong operators and investors, we have the proven capabilities, capital and insights to navigate the new market realities,
find companies that will offer consistent long-term economic performance and help pivot them in ways that prepare them for their
next chapter of growth.
Sources
of Target Business
We
anticipate that target business candidates will be brought to our attention from various unaffiliated sources, including investment
market participants, private equity groups, investment banking firms, consultants, accounting firms and large business enterprises.
Target businesses may be brought to our attention by such unaffiliated sources as a result of being solicited by us through calls
or mailings. These sources may also introduce us to target businesses in which they think we may be interested on an unsolicited
basis, since some of these sources will have read this Annual Report and know what types of businesses we are targeting. Our officers
and directors, as well as their affiliates, may also bring to our attention target business candidates that they become aware
of through their business contacts as a result of formal or informal inquiries or discussions they may have, as well as attending
trade shows or conventions. In addition, we expect to receive a number of proprietary deal flow opportunities that would not otherwise
necessarily be available to us as a result of the business relationships of our officers and directors. While we do not presently
anticipate engaging the services of professional firms or other individuals that specialize in business acquisitions on any formal
basis, we may engage these firms or other individuals in the future, in which event we may pay a finder’s fee, consulting
fee or other compensation to be determined in an arm’s length negotiation based on the terms of the transaction. We will
engage a finder only to the extent our management determines that the use of a finder may bring opportunities to us that may not
otherwise be available to us or if finders approach us on an unsolicited basis with a potential transaction that our management
determines is in our best interest to pursue. Payment of finder’s fees is customarily tied to completion of a transaction,
in which case any such fee will be paid out of the funds held in the trust account. In no event, however, will our sponsor or
any of our existing officers, or their respective affiliates, be paid by us any finder’s fee, consulting fee or other compensation
prior to, or for any services they render in order to effectuate, the completion of our initial business combination (regardless
of the type of transaction that it is). However, we may pay any of our existing directors who are not also officers, or any entity
with which they are affiliated, a finder’s fee, consulting fee or other compensation in connection with identifying, investigating
and completing our initial business combination, to the extent such payment is in compliance with all laws and is consistent with
independent director requirements. Such payment may be paid from the proceeds held in the trust account upon consummation of an
initial business combination. Some of our officers and directors may enter into employment or consulting agreements with the post-business
combination company following our initial business combination. The presence or absence of any such fees or arrangements will
not be used as a criterion in our selection process of an acquisition candidate.
We
are not prohibited from pursuing an initial business combination with a company that is affiliated with our sponsor, Founders,
officers or directors. In the event we seek to complete our initial business combination with a company that is affiliated with
our sponsor or any of our Founders, officers or directors, we, or a committee of independent directors, will obtain an opinion
from an independent investment banking firm or another independent entity that commonly renders valuation opinions that such initial
business combination is fair to our company from a financial point of view. We are not required to obtain such an opinion in any
other context.
Acquisition
Criteria
We
will target business combination opportunities that align with our strategic insights, focus, capabilities and network. Consistent
with our business strategy, we have identified the following general criteria and guidelines that we believe are important in
evaluating prospective target businesses. While we will use these criteria and guidelines in evaluating acquisition opportunities,
we may decide to enter into our initial business combination with a target business that does not meet these criteria and guidelines.
We
intend to seek candidates with an enterprise value of at least $750 million, and we intend to seek to acquire companies that encompass
one or more of the following characteristics:
● Strong
core business with a competitive market position: We will seek targets that have
leading market share, demonstrated competitive advantages, and well-established barriers
to entry. The target business should have characteristics that are difficult to replicate,
have multiple opportunities for growth and operate in markets with strong fundamentals.
● Attractive
financial profile: We will seek to acquire a business that has a demonstrated history
of strong financial performance coupled with multiple vectors for continued future growth
and strong operating margins that result in stable and sustainable free cash flow generation.
● Proven
management team: We intend to acquire a business with an experienced management team
with a proven track record of driving growth, enhancing profitability and implementing
sound strategic decisions. We want to partner with a company that can benefit from our
experience and long history of investing in successful companies.
● Strong
corporate culture: We seek to partner with a company that has cultivated a robust
corporate culture, is mission-driven with a distinct purpose and is committed to a defined
set of core values.
● Opportunity
for operational improvement: We believe that a key driver of value creation will
be the accurate identification of areas to strengthen operations and enhance execution,
and we intend to identify candidates that will benefit from our knowledge, capabilities
and expertise.
● Platform
for organic and potentially inorganic growth: We believe that we can utilize our
expertise and extensive networks to source proprietary business or acquisition opportunities
to accelerate the growth trajectory of a target business.
● Will
benefit from being a public company: We will seek management and shareholders who
aspire to have their company become a public entity in order to have broader access to
debt and equity capital, liquidity and incentives for employees, a currency for potential
acquisitions and expanded brand and growth initiative.
● Appropriate
valuation: We intend to be disciplined and focused on acquiring a target at an attractive
valuation relative to publicly traded comparable companies and that we believe provides
significant upside.
These
criteria 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 guidelines as well as other considerations, factors and criteria that our
sponsors and management team may deem relevant. In the event that we decide to enter into a 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 in our shareholder communications related to our initial business combination, which, as discussed in this Annual Report,
would be in the form of proxy solicitation or tender offer materials, as applicable, that we would file with the U.S. Securities
and Exchange Commission (the “SEC”). Although we intend to focus on identifying business combination candidates in
the consumer products, services, retail and related industries, we will consider a business combination candidate outside of these
industries if we determine that such candidate offers an attractive opportunity for our company.
Initial
Business Combination
So
long as our securities are listed on the NYSE, our initial business combination must occur with a target business that has an
aggregate fair market value of at least 80% of the net assets held in the trust account (excluding the deferred underwriting commissions
and taxes payable on the interest earned on the trust account) at the time of signing a definitive agreement in connection with
our initial business combination. If our board is not able to determine the fair market value of the target business independently,
we will obtain an opinion from an independent investment banking firm or an independent valuation or appraisal firm with respect
to the satisfaction of such criteria. While we consider it unlikely that our board will be unable to make an independent determination
of the fair market value of a target business, it may be unable to do so if: (1) our board is less familiar or inexperienced with
the target company’s business, (2) there is a significant amount of uncertainty as to the value of the Company’s assets
or prospects, including if such company is at an early stage of development, operations or growth, or (3) if the anticipated transaction
involves a complex financial analysis or other specialized skills, and our board determines that outside expertise would be helpful
or necessary in conducting such analysis. Since any opinion, if obtained, would merely state that the fair market value of the
target business meets the 80% of net assets threshold, unless such opinion includes material information regarding the valuation
of a target business or the consideration to be provided, it is not anticipated that copies of such opinion would be distributed
to our shareholders. However, if required under applicable law, any proxy statement that we deliver to shareholders and file with
the SEC in connection with a proposed transaction will include such opinion.
We
anticipate structuring our initial business combination so that the post-business combination company in which our public
shareholders own shares will own or acquire 100% of the equity interests or assets of the target business. We may, however, structure
our initial business combination such that the post-business combination 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-business combination 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, or the Investment
Company Act. Even if the post-business combination company owns or acquires 50% or more of the voting securities of the target,
our shareholders prior to the business combination may collectively own a minority interest in the post-business combination
company, depending on valuations ascribed to the target and us in the business combination. For example, we could pursue a transaction
in which we issue a substantial number of new shares in exchange for all of the outstanding capital stock, shares or other equity
interests 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 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-business combination company, the portion
of such business or businesses that is owned or acquired is what will be valued for purposes of the 80% of net assets test. If
the business combination involves more than one target business, the 80% of net assets test will be based on the aggregate value
of all of the target businesses. In addition, we have agreed not to enter into a definitive agreement regarding an initial business
combination without the prior consent of our sponsor. If our securities are not then listed on the NYSE for whatever reason, we
would no longer be required to meet the foregoing 80% of net asset test.
To
the extent we effect our initial business combination with a company or business that may be financially unstable or in its early
stages of development or growth, we may be affected by numerous risks inherent in such company or business. Although our management
team will endeavor to evaluate the risks inherent in a particular target business, we cannot assure you that we will properly
ascertain or assess all significant risk factors.
The
time required to select and evaluate a target business and to structure and complete our initial business combination, and the
costs associated with this process, are not currently ascertainable with any degree of certainty. Any costs incurred with respect
to the identification and evaluation of a prospective target business with which our initial business combination is not ultimately
completed will result in our incurring losses and will reduce the funds we can use to complete another business combination
Acquisition
Process
In
evaluating a potential target business, we expect to conduct a comprehensive due diligence review to seek to determine a company’s
quality and its intrinsic value. That due diligence review may include, among other things, financial statement analysis, detailed
document reviews, multiple meetings with management, consultations with relevant industry experts, competitors, customers and
suppliers, as well as a review of additional information that we will seek to obtain as part of our analysis of a target company.
We
are not prohibited from pursuing an initial business combination with a company that is affiliated with our sponsor, officers
or directors. In the event we seek to complete our initial business combination with a company that is affiliated with our sponsor,
officers or directors, we, or a committee of independent directors, will obtain an opinion from an independent investment banking
firm or an independent accounting firm that our initial business combination is fair to our company from a financial point of
view.
Members
of our and MidOcean Partners’ (“MidOcean”) management teams, including our officers and directors, directly
or indirectly own our securities following the Initial Public Offering and, accordingly, may have a conflict of interest in determining
whether a particular target company is an appropriate business with which to effectuate our initial business combination. Each
of our officers and directors, as well as our and MidOcean’s management teams, may have a conflict of interest with respect
to evaluating a particular business combination if the retention or resignation of any such officers, directors, and management
team members was included by a target business as a condition to any agreement with respect to such business combination.
Each
of our directors, director nominees and officers presently has, 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. Accordingly, if any of our officers or directors 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 will honor
his or her fiduciary or contractual obligations to present such opportunity to such entity. We do not believe, however, that the
fiduciary duties or contractual obligations of our officers or directors will materially affect our ability to complete our initial
business combination.
Our
amended and restated memorandum and articles of association provides that we renounce our interest in any corporate opportunity
offered to any director or officer unless such opportunity is expressly offered to such person solely in his or her capacity as
a director or officer of our company, and such opportunity is one we are legally and contractually permitted to undertake and
would otherwise be reasonable for us to pursue, and to the extent the director or officer is permitted to refer that opportunity
to us without violating another legal obligation.
Our
Founders, sponsor, officers, and directors may sponsor, form or participate in other blank check companies similar to ours during
the period in which we are seeking an initial business combination. Any such companies may present additional conflicts of interest
in pursuing an acquisition target, particularly in the event there is overlap among investment mandates. However, we do not currently
expect that any such other blank check company would materially affect our ability to complete our initial business combination.
In addition, our Founders, sponsor, officers, and directors are not 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.
Shareholders
May Not Have the Ability to Approve Our Initial Business Combination
We
may conduct redemptions without a shareholder vote pursuant to the tender offer rules of the SEC subject to the provisions of
our amended and restated memorandum and articles of association. However, we will seek shareholder approval if it is required
by applicable law or stock exchange listing requirement, or we may decide to seek shareholder approval for business or other reasons.
Redemption
Rights for Public Shareholders upon Completion of Our Initial Business Combination
We
will provide our public shareholders with the opportunity to redeem all or a portion of their Class A ordinary shares upon the
completion of our initial business combination 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 the initial business combination, including
interest earned on the funds held in the trust account and not previously released to us to pay our income taxes, if any, divided
by the number of then-outstanding public shares, subject to the limitations described herein. The amount in the trust account
was initially anticipated to be $10.00 per public share. The per-share amount we will distribute to investors who properly redeem
their shares will not be reduced by the deferred underwriting commissions we will pay to the underwriters. The redemption rights
will include the requirement that a beneficial holder must identify itself in order to validly redeem its shares. There will be
no redemption rights upon the completion of our initial business combination with respect to our warrants. Further, we will not
proceed with redeeming our public shares, even if a public shareholder has properly elected to redeem its shares, if a business
combination does not close.
Our
sponsor and each member of our management team have entered into an agreement with us, pursuant to which they have agreed to waive
their redemption rights with respect to any founder shares and public shares held by them in connection with (i) the completion
of our initial business combination, and (ii) a shareholder vote to approve an amendment to our amended and restated memorandum
and articles of association (A) that would modify the substance or timing of our obligation to provide holders of our Class A
ordinary shares the right to have their shares redeemed 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 24 months from the closing of the Initial Public
Offering or during any extended time that we have to consummate a business combination beyond 24 months as a result of a shareholder
vote to amend our amended and restated memorandum and articles of association (the “Extension Period”) or (B) with
respect to any other provision relating to the rights of holders of our Class A ordinary shares.
Limitations
on Redemptions
Our
amended and restated memorandum and articles of association provide 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 either prior to or upon consummation of an initial business
combination (so that we do not then become subject to the SEC’s “penny stock” rules). However, the proposed
business combination may require: (i) cash consideration to be paid to the target or its owners, (ii) cash to be transferred to
the target for working capital or other general corporate purposes or (iii) the retention of cash to satisfy other conditions
in accordance with the terms of the proposed business combination. In the event the aggregate cash consideration we would be required
to pay for all Class A ordinary 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 Class A ordinary shares submitted for redemption will be returned to the
holders thereof.
Limitation
on Redemption upon Completion of Our Initial Business Combination If We Seek Shareholder Approval
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 without our prior consent.
We believe this restriction will discourage shareholders from accumulating large blocks of shares, and subsequent attempts by
such holders to use their ability to exercise their redemption rights against a proposed business combination as a means to force
us or our management to purchase their shares at a significant premium to the then-current market price or on other undesirable
terms. Absent this provision, a public shareholder holding more than an aggregate of 15% of the shares sold in the Initial Public
Offering could threaten to exercise its redemption rights if such holder’s shares are not purchased by us, our sponsor or
our management at a premium to the then-current market price or on other undesirable terms. By limiting our shareholders’
ability to redeem no more than 15% of the shares sold in the Initial Public Offering without our prior consent, we believe we
will limit the ability of a small group of shareholders to unreasonably attempt to block our ability to complete our initial business
combination, particularly in connection with a business combination with a target that requires as a closing condition that we
have a minimum net worth or a certain amount of cash.
Redemption
of Public Shares and Liquidation If No Initial Business Combination
Our
amended and restated memorandum and articles of association provide that we have only 24 months from the closing of the Initial
Public Offering to consummate an initial business combination. If we have not consummated an initial business combination within
24 months from the closing of the Initial Public Offering, we will: (i) cease all operations except for the purpose of winding
up; (ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem 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 earned on the funds
held in the trust account and not previously released to us to pay our income taxes, if any (less up to $100,000 of interest to
pay dissolution expenses) divided by the number of the then-outstanding public shares, which redemption will completely extinguish
public shareholders’ rights as shareholders (including the right to receive further liquidation distributions, if any);
and (iii) 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 the case of clauses (ii) and (iii) 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 consummate an initial business
combination within 24 months from the closing of the Initial Public Offering. Our amended and restated memorandum and articles
of association provide that, if we wind up for any other reason prior to the consummation of our initial business combination,
we will follow the foregoing procedures with respect to the liquidation of the trust account as promptly as reasonably possible
but not more than ten business days thereafter, subject to applicable Cayman Islands law.
Our
sponsor and each member of our management team have entered into an agreement with us, pursuant to which they have agreed to waive
their rights to liquidating distributions from the trust account with respect to any founder shares they hold if we fail to consummate
an initial business combination within 24 months from the closing of the 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 our initial business combination within the prescribed time frame).
Our
sponsor, executive officers, directors and director nominees have agreed, pursuant to a written agreement with us, that they will
not propose any amendment to our amended and restated memorandum and articles of association (A) that would modify the substance
or timing of our obligation to provide holders of our Class A ordinary shares the right to have their shares redeemed 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 24 months from the closing of the Initial Public Offering or (B) with respect to any other provision relating to the rights
of holders of our Class A ordinary shares, unless we provide our public shareholders with the opportunity to redeem their public
shares upon approval of any such amendment at a per-share price, payable in cash, equal to the aggregate amount then on deposit
in the trust account, including interest earned on the funds held in the trust account and not previously released to us to pay
our income taxes, if any, divided by the number of the then-outstanding public shares. However, we may not redeem our public shares
in an amount that would cause our net tangible assets to be less than $5,000,001 either prior to or upon consummation of an initial
business combination (so that we do not then become subject to the SEC’s “penny stock” rules). If this optional
redemption right is exercised with respect to an excessive number of public shares such that we cannot satisfy the net tangible
asset requirement, we would not proceed with the amendment or the related redemption of our public shares at such time. This redemption
right shall apply in the event of the approval of any such amendment, whether proposed by our sponsor, any executive officer,
director or director nominee, or any other person.
Corporate
Information
We
are a Cayman Islands exempted company. Exempted companies are Cayman Islands companies conducting business mainly outside the
Cayman Islands and, as such, are exempted from complying with certain provisions of the Companies Law. As an exempted company,
we have applied for and received a tax exemption undertaking from the Cayman Islands government that, in accordance with Section
6 of the Tax Concessions Law (2018 Revision) of the Cayman Islands, for a period of 20 years from the date of the undertaking,
no law that is enacted in the Cayman Islands imposing any tax to be levied on profits, income, gains or appreciations will apply
to us or our operations and, in addition, that no tax to be levied on profits, income, gains or appreciations or which is in the
nature of estate duty or inheritance tax will be payable (i) on or in respect of our shares, debentures or other obligations or
(ii) by way of the withholding in whole or in part of a payment of dividend or other distribution of income or capital by us to
our shareholders or a payment of principal or interest or other sums due under a debenture or other obligation of us.
Competition
In
identifying, evaluating and selecting a target business for our initial business combination, we may encounter intense competition
from other entities having a business objective similar to ours, including other blank check companies, private equity groups
and leveraged buyout funds, public companies, and operating businesses seeking strategic acquisitions. Many of these entities
are well established and have extensive experience identifying and effecting business combinations directly or through affiliates.
Moreover, many of these competitors possess greater financial, technical, human and other resources than us. Our ability to acquire
larger target businesses will be limited by our available financial resources. This inherent limitation gives others an advantage
in pursuing the acquisition of a target business. Furthermore, our obligation to pay cash in connection with our public shareholders
who exercise their redemption rights may reduce the resources available to us for our initial business combination and our outstanding
warrants, and the future dilution they potentially represent, may not be viewed favorably by certain target businesses. Either
of these factors may place us at a competitive disadvantage in successfully negotiating an initial business combination.
Facilities
We
currently maintain our executive offices at 245 Park Avenue, 38th Floor, New York, NY 10167. We consider our current office space
adequate for our current operations.
Employees
We
currently have three executive officers. These individuals 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 they will devote in any time period will vary based on whether a target business has been selected
for our initial business combination and the stage of the business combination process we are in. We do not intend to have any
full time employees prior to the completion of our initial business combination.
Periodic
Reporting and Financial Information
We
have registered our units, Class A ordinary shares and warrants under the Exchange Act and have reporting obligations, including
the requirement that we file annual, quarterly and current reports with the SEC. In accordance with the requirements of the Exchange
Act, our annual reports will contain financial statements audited and reported on by our independent registered public accountants.
We
will provide shareholders with audited financial statements of the prospective target business as part of the proxy solicitation
or tender offer materials, as applicable, sent to shareholders. These financial statements may be required to be prepared in accordance
with, or reconciled to, GAAP, or IFRS, depending on the circumstances, and the historical financial statements may be required
to be audited in accordance with the standards of the 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 statements in time for us to disclose such
statements in accordance with federal proxy rules and complete our initial business combination within the prescribed time frame.
We cannot assure you that any particular target business identified by us as a potential acquisition candidate will have financial
statements prepared in accordance with the requirements outlined above, or that the potential target business will be able to
prepare its financial statements in accordance with the requirements outlined above. To the extent that these requirements cannot
be met, we may not be able to acquire the proposed target business. While this may limit the pool of potential acquisition candidates,
we do not believe that this limitation will be material.
We
will be required to evaluate our internal control procedures for the fiscal year ending December 31, 2021 as required by the Sarbanes-Oxley
Act. 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 not be required to comply with the independent registered public accounting firm attestation requirement
on our internal control over financial reporting. A target business may not be in compliance with the provisions of the Sarbanes-Oxley
Act regarding adequacy of their internal controls. The development of the internal controls of any such entity to achieve compliance
with the Sarbanes-Oxley Act may increase the time and costs necessary to complete any such acquisition.
We
are an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the JOBS Act. As
such, we are eligible to take advantage of certain exemptions from various reporting requirements that are applicable to other
public companies that are not “emerging growth companies” including, but not limited to, not being required to comply
with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive
compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding a non-binding advisory
vote on executive compensation and shareholder approval of any golden parachute payments not previously approved. If some investors
find our securities less attractive as a result, there may be a less active trading market for our securities and the prices of
our securities may be more volatile.
In
addition, Section 107 of the JOBS Act also provides that an “emerging growth company” can take advantage of the extended
transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards.
In other words, an “emerging growth company” can delay the adoption of certain accounting standards until those standards
would otherwise apply to private companies. We intend to take advantage of the benefits of this extended transition period.
We
will remain an emerging growth company until the earlier of (1) the last day of the fiscal year (a) following the fifth anniversary
of the completion of the Initial Public Offering, (b) in which we have total annual gross revenue of at least $1.07 billion, or
(c) in which we are deemed to be a large accelerated filer, which means the market value, the volume weighted average trading
price of its Class A ordinary shares during the 20 trading day period starting on the trading day prior to the day on which the
Company consummates its initial business combination (such price, the “market value”), of our Class A ordinary shares
that are held by non-affiliates exceeds $700 million as of the prior June 30th, and (2) the date on which we have issued more
than $1.0 billion in non-convertible debt securities during the prior three-year period.
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 exceeds $250 million as of the prior June 30, or (2) our annual revenues exceeded $100
million during such completed fiscal year and the market value of our ordinary shares held by non-affiliates exceeds $700 million
as of the prior June 30.
We
maintain a corporate website at www.empowermidocean.com. The information that may be contained on or accessible through
our corporate website or any other website that we may maintain is not incorporated by reference in, or otherwise a part of, this
report.

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ITEM 1A. RISK FACTORS
Item 1A.
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 on Form 10-K, before making a decision to invest in our units. 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.
SUMMARY
OF RISK FACTORS
An
investment in our securities involves a high degree of risk. The following is a summary of the principal factors that make an
investment in our securities speculative or risky, all of which are more fully described below in the section titled “Risk
Factors.” This summary should be read in conjunction with the “Risk Factors” section and should not be relied
upon as an exhaustive summary of the material risks facing our business. In addition to the following summary, you should consider
the information set forth in the “Risk Factors” section and the other information contained in this Annual Report
before investing in our securities.
● We
are a recently incorporated company with no operating history and no revenues, and you
have no basis on which to evaluate our ability to achieve our business objective.
● Past
performance by our management team or their respective affiliates may not be indicative
of future performance of an investment in us.
● Our
shareholders may not be afforded an opportunity to vote on our proposed initial business
combination, which means we may complete our initial business combination even though
a majority of our shareholders do not support such a combination.
● Your
only opportunity to affect the investment decision regarding a potential business combination
may be limited to the exercise of your right to redeem your shares from us for cash.
● If
we seek shareholder approval of our initial business combination, our sponsor and members
of our management team have agreed to vote in favor of such initial business combination,
regardless of how our public shareholders vote.
● 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.
● 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.
● 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.
● The
requirement that we consummate an initial business combination within 24 months after
the closing of the Initial Public Offering 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.
● 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 recent coronavirus
(COVID-19) outbreak and the status of debt and equity markets. We may not be able to
consummate an initial business combination within 24 months after the closing of the
Initial Public Offering, in which case we would cease all operations except for the purpose
of winding up and we would redeem our public shares and liquidate.
● If
we seek shareholder approval of our initial business combination, our sponsor, directors,
executive officers, advisors and their affiliates may elect to purchase public shares
or warrants, which may influence a vote on a proposed business combination and reduce
the public “float” of our Class A ordinary shares or public warrants.
● 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.
● You
will not have any rights or interests in funds from the trust account, except under certain
limited circumstances. Therefore, to liquidate your investment, you may be forced to
sell your public shares or warrants, potentially at a loss.
● The
NYSE 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.
● Our
security holders are not entitled to protections normally afforded to investors of many
other blank check companies.
● 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 consummated our initial business combination within the required time period, our
public shareholders may receive only approximately $10.00 per public share, or less in
certain circumstances, on the liquidation of our trust account and our warrants will
expire worthless.
● If
the net proceeds of the Initial Public Offering and the sale of the private placement
warrants not being held in the trust account are insufficient to allow us to operate
for the 12 months following the closing of the Initial Public Offering, it could limit
the amount available to fund our search for a target business or businesses and our ability
to complete our initial business combination, and we will depend on loans from our sponsor,
its affiliates or members of our management team to fund our search and to complete our
initial business combination.
● 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.
● 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
$10.00 per public share.
● The
securities in which we invest the proceeds held in the trust account could bear a negative
rate of interest, which could reduce the interest income available for payment of taxes
or reduce the value of the assets held in trust such that the per share redemption amount
received by shareholders may be less than $10.00 per share.
● After
our initial business combination, substantially all of our assets may be located in a
foreign country and substantially all of our revenue may be derived from our operations
in any such country. Accordingly, our results of operations and prospects will be subject,
to a significant extent, to the economic, political and social conditions and government
policies, developments and conditions in the country in which we operate.
● 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.
● 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.
Risks
Related to Our Business and Financial Position
We
are a recently incorporated company with no operating history and no revenues, and you have no basis on which to evaluate our
ability to achieve our business objective.
We
are a recently 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 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.
If
the net proceeds of the Initial Public Offering and the sale of the private placement warrants not being held in the trust account
are insufficient to allow us to operate for the 12 months following the closing of the Initial Public Offering, it could limit
the amount available to fund our search for a target business or businesses and our ability to complete our initial business combination,
and we will depend on loans from our sponsor, its affiliates or members of our management team to fund our search and 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 12 months after
the closing of the Initial Public Offering, assuming that our initial business combination is not completed during that time.
We expect to incur significant costs in pursuit of our acquisition plans. 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.
We believe that, as of December 31, 2020, the funds available to us outside of the trust account, together with funds available
from loans from our sponsor, its affiliates or members of our management team will be sufficient to allow us to operate for at
least the 12 months following the closing of the Initial Public Offering; however, we cannot assure you that our estimate is accurate,
and our sponsor, its affiliates or members of our management team are under no obligation to advance funds to us in such circumstances.
Of the funds available to us, we expect to use a portion of the funds available to us 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 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 a letter of intent 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.
Of
the net proceeds of the Initial Public Offering and the sale of the private placement warrants, only $1,080,629 is available to
us as of December 31, 2020 outside the trust account to fund our working capital requirements. In the event that such amount is
insufficient to fund our search for a target business and to consummate an initial business combination we may seek additional
capital. If we are required to seek additional capital, we would need to borrow funds from our sponsor, its affiliates, members
of our management team or other third parties to operate or may be forced to liquidate. Neither our sponsor, members of our management
team nor their affiliates is under any obligation to us in such circumstances. Any such advances may be repaid only from funds
held outside the trust account or from funds released to us upon completion of our initial business combination. Up to $2,000,000
of such loans may be convertible into warrants of the post-business combination entity at a price of $1.50 per warrant at the
option of the lender. The warrants would be identical to the private placement warrants. Prior to the completion of our initial
business combination, we do not expect to seek loans from parties other than our sponsor, its affiliates or members of our management
team 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. If we have not consummated our initial business combination within the required time
period because we do not have sufficient funds available to us, we will be forced to cease operations and liquidate the trust
account. Consequently, our public shareholders may only receive an estimated $10.00 per public share, or possibly less, on our
redemption of our public shares, and our warrants will expire worthless. See “- 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 $10.00 per public share” and other risk factors herein.
Past
performance by our management team or their respective affiliates may not be indicative of future performance of an investment
in us.
Information
regarding performance is presented for informational purposes only. Any past experience or performance of our management team
and their respective affiliates is not a guarantee of either (i) our ability to successfully identify and execute a transaction
or (ii) success with respect to any business combination that we may consummate. You should not rely on the historical record
of our management team or their respective affiliates as indicative of the future performance of an investment in us or the returns
we will, or are likely to, generate going forward. Our management has no experience in operating special purpose acquisition companies.
We
are dependent upon our executive officers and directors and their loss could adversely affect our ability to operate.
Our
operations are dependent upon a relatively small group of individuals and, in particular, our executive officers and directors.
We believe that our success depends on the continued service of our officers and directors, at least until we have completed our
initial business combination. In addition, our executive officers and directors are not 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 activities,
including identifying potential business combinations and monitoring the related due diligence. We do not have an employment agreement
with, or key-man insurance on the life of, any of our directors or executive officers.
The
unexpected loss of the services of one or more of our directors or executive officers could have a detrimental effect on us.
Our
ability to successfully effect our initial business combination and to be successful thereafter will be totally dependent upon
the efforts of our key personnel, some of whom may join us following our initial business combination. The loss of 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. We believe
that our success depends on the continued service of our key personnel, at least until we have consummated our initial business
combination. None of our officers are required to commit any specified amount of time to our affairs and, accordingly, they will
have conflicts of interest in allocating management time among various business activities, including identifying potential business
combinations and monitoring the related due diligence. If our officers’ and directors’ other business affairs require
them to devote more substantial amounts of time to their other business activities, it could limit their ability to devote time
to our affairs and could have a negative impact on our ability to consummate our initial business combination. In addition, we
do not have employment agreements with, or key-man insurance on the life of, any of our officers. The unexpected loss of the services
of our key personnel could have a detrimental effect on us.
The
role of our key personnel after our initial business combination, however, remains to be determined. Although some of our key
personnel serve in senior management or advisory positions following our initial business combination, it is likely that most,
if not all, of the management of the target business will remain in place. These individuals may be unfamiliar with the requirements
of operating a public company which could cause us to have to expend time and resources helping them become familiar with such
requirements. This could be expensive and time-consuming and could lead to various regulatory issues which may adversely affect
our operations.
Our
key personnel may negotiate employment or consulting agreements with a target business in connection with a particular business
combination, and a particular business combination may be conditioned on the retention or resignation of such key personnel. 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 our 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 the business combination.
Such negotiations also could make such key personnel’s retention or resignation a condition to any such agreement. The personal
and financial interests of such individuals may influence their motivation in identifying and selecting a target business. Our
sponsor, upon and following consummation of an initial business combination, will be entitled to nominate three individuals for
appointment to our board of directors, as long as our sponsor holds any securities covered by the registration and shareholder
rights agreement, which is described herein under the section entitled “Certain Relationships and Related Transactions,
and Director Independence - Registration and Shareholder Rights.”
We
may have a 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 business’s management, therefore, may prove to be incorrect and such management may lack the skills, qualifications
or abilities we suspected. Should the target business’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 holders who choose to retain their securities following the business combination could suffer a reduction in the value of
their securities. Such holders are unlikely to have a remedy for such reduction in value.
The
officers and directors of an acquisition candidate may resign upon completion of our initial business combination. The loss 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.
Our
executive officers and directors 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
executive officers and directors are not 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 executive officers is engaged in several other business endeavors for which he may be entitled to substantial compensation,
and our executive officers are not obligated to contribute any specific number of hours per week to our affairs. Our independent
directors also serve as officers and board members for other entities. If our executive officers’ and directors’ other
business affairs require them to devote substantial amounts of time to such affairs 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 complete discussion of our executive officers’ and directors’ other business affairs,
please see “Directors, Executive Officers and Corporate Governance.”
Our
officers and directors presently have, and any of them in the future may have, additional, fiduciary or contractual obligations
to other entities, including another blank check company, 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 or entities. Each of our officers and directors presently has, 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, subject to his or her fiduciary duties under Cayman Islands law. 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 another entity prior to its presentation
to us, subject to their fiduciary duties under Cayman Islands law.
In
addition, our Founders, sponsor, officers and directors may in the future become affiliated with other blank check companies that
may have acquisition objectives that are similar to ours. 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 such other blank check companies prior to its presentation to us, subject to our officers’
and directors’ fiduciary duties under Cayman Islands law. Our amended and restated memorandum and articles of association
provide that we renounce our interest in any business combination opportunity offered to any Founder, director or officer unless
such opportunity is expressly offered to such person solely in his or her capacity as a director or officer of the Company and
it is an opportunity that we are able to complete on a reasonable basis.
For
a complete discussion of our executive officers’ and directors’ business affiliations and the potential conflicts
of interest that you should be aware of, please see “Directors, Executive Officers and Corporate Governance”
and “Certain Relationships and Related Party Transactions, and Director Independence.”
Our
executive officers, directors, 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, executive officers, 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. 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. Accordingly, such persons or entities may have a conflict
between their interests and ours. Additionally, Empower Funding is an affiliate of our sponsor.
The
personal and financial interests of our directors and officers may influence their motivation in timely identifying and selecting
a target business and completing a business combination. Consequently, our directors’ and officers’ discretion in
identifying and selecting a suitable target business may result in a conflict of interest when determining whether the terms,
conditions and timing of a particular business combination are appropriate and in our shareholders’ best interest.
Risks
Related to Our Proposed Initial Business Combination
Our
shareholders may not be afforded an opportunity to vote on our proposed initial business combination, which means we may complete
our initial business combination even though a majority of our shareholders do not support such a combination.
We
may choose not to hold a shareholder vote before we complete our initial business combination if the business combination would
not require shareholder approval under applicable law or stock exchange listing requirement. For instance, if we were seeking
to acquire a target business where the consideration we were paying in the transaction was all cash, we would typically not be
required to seek shareholder approval to complete such a transaction. Except for as required by applicable law or stock exchange
listing requirement, 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 complete our initial business combination even if holders of a majority of our
issued and outstanding ordinary shares do not approve of the business combination we complete.
Your
only opportunity to affect the investment decision regarding a potential business combination may be limited to the exercise of
your right to redeem your shares from us for cash.
You
will not be provided with an opportunity to evaluate the specific merits or risks of any target businesses. 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, 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.
If
we seek shareholder approval of our initial business combination, our sponsor and members of our management team have agreed to
vote in favor of such initial business combination, regardless of how our public shareholders vote.
Our
sponsor owns, on an as-converted basis, 20% of our outstanding ordinary shares immediately following the Initial Public Offering.
Our
sponsor and members of our management team also may from time to time purchase Class A ordinary shares prior to our initial business
combination. Our amended and restated memorandum and articles of association provide that, if we seek shareholder approval, we
will complete our initial business combination only if we obtain the approval of an ordinary resolution under Cayman Islands law,
being the affirmative vote of a majority of the ordinary shares represented in person or by proxy and entitled to vote thereon
and who vote at a general meeting. As a result, in addition to our sponsor’s founder shares, we would need 9,375,001, or
37.5% (assuming all issued and outstanding shares are voted), or 1,562,501, or 6.25% (assuming only the minimum number of shares
representing a quorum are voted), of the 25,000,000 public shares sold in the Initial Public Offering to be voted in favor of
an initial business combination in order to have our initial business combination approved. Accordingly, if we seek shareholder
approval of our initial business combination, the agreement by our sponsor and each member of our management team to vote in favor
of our initial business combination will increase the likelihood that we will receive the requisite shareholder approval for such
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.
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.
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 either prior to or upon consummation of an initial business combination (so that we do not then become subject to the
SEC’s “penny stock” rules). Consequently, if accepting all properly submitted redemption requests would cause
our net tangible assets to be less than $5,000,001 either prior to or upon consummation of an initial business combination 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. 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 will need to structure the transaction based on our expectations as to the number of shares
that will be submitted for redemption. If a large number of shares are submitted for redemption, we may need to restructure the
transaction to reserve a greater portion of the cash in the trust account or arrange for additional 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 amount of the deferred underwriting commissions payable to the underwriters will not be adjusted
for any shares that are redeemed in connection with an initial business combination. The per-share amount we will distribute to
shareholders who properly exercise their redemption rights will not be reduced by the deferred underwriting commissions and after
such redemptions, the amount held in trust will continue to reflect our obligation to pay the entire deferred underwriting commissions.
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
is increased. If our initial business combination is unsuccessful, you would not receive your pro rata portion of the funds in
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 consummate an initial business combination within 24 months after the closing of the Initial Public Offering
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 consummate
an initial business combination within 24 months 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 time frame described above. 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.
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 recent coronavirus (COVID-19) outbreak and the status of debt and equity markets.
In
December 2019, a novel strain of coronavirus was reported to have surfaced, which has and is continuing to spread throughout the
world, including the United States. On January 30, 2020, the World Health Organization declared the outbreak of the coronavirus
disease (COVID-19) a “Public Health Emergency of International Concern.” On January 31, 2020, U.S. Health and Human
Services Secretary Alex M. Azar II declared a public health emergency for the United States to aid the U.S. healthcare community
in responding to COVID-19, and on March 11, 2020 the World Health Organization characterized the outbreak as a “pandemic”.
The 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 COVID-19 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 outbreak has and a significant outbreak of other infectious diseases could result in a widespread
health crisis that could adversely affect the economies and financial markets worldwide, and the business of any potential target
business with which we consummate a business combination could be materially and adversely affected. Furthermore, we may be unable
to complete a business combination if continued concerns relating to COVID-19 continues to restrict travel, limit the ability
to have meetings with potential investors or the target company’s personnel, vendors and services providers are unavailable
to negotiate and consummate a transaction in a timely manner. The extent to which COVID-19 impacts our search for a 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 COVID-19 and the actions to contain COVID-19 or treat its impact, among others. If the disruptions
posed by COVID-19 or other matters of global concern continue for an extensive 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 in
third-party financing being unavailable on terms acceptable to us or at all.
We
may not be able to consummate an initial business combination within 24 months after the closing of the Initial Public Offering,
in which case we would cease all operations except for the purpose of winding up and we would redeem our public shares and liquidate.
We
may not be able to find a suitable target business and consummate an initial business combination within 24 months after the closing
of the Initial Public Offering. Our ability to complete our initial business combination may be negatively impacted by general
market conditions, volatility in the capital and debt markets and the other risks described herein. For example, the outbreak
of COVID-19 continues to grow both in the U.S. and globally and, while the extent of the impact of the outbreak 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 outbreak of COVID-19 may negatively impact businesses we may seek to acquire. If we have not consummated an
initial business combination within such applicable time period, we will: (i) cease all operations except for the purpose of winding
up; (ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem 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 earned on the funds
held in the trust account and not previously released to us to pay our income taxes, if any (less up to $100,000 of interest to
pay dissolution expenses), divided by the number of the then-outstanding public shares, which redemption will completely extinguish
public shareholders’ rights as shareholders (including the right to receive further liquidation distributions, if any);
and (iii) 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 the case of clauses (ii) and (iii), to our obligations under Cayman
Islands law to provide for claims of creditors and the requirements of other applicable law. Our amended and restated memorandum
and articles of association provide that, if we wind up for any other reason prior to the consummation of our initial business
combination, we will follow the foregoing procedures with respect to the liquidation of the trust account as promptly as reasonably
possible but not more than ten business days thereafter, subject to applicable Cayman Islands law. In either such case, our public
shareholders may receive only $10.00 per public share, or less than $10.00 per public share, on the redemption of their shares,
and our warrants will expire worthless. See “- 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 $10.00 per public
share” and other risk factors herein.
If
we seek shareholder approval of our initial business combination, our sponsor, directors, executive officers, advisors and their
affiliates may elect to purchase public shares or warrants, which may influence a vote on a proposed business combination and
reduce the public “float” of our Class A ordinary shares or public warrants.
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, executive officers, advisors or their 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, although, other than the Empower Funding forward purchase agreement, they
are under no obligation to do so. However, 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. None of the funds in the trust account will be used
to purchase public shares or warrants in such transactions.
In
the event that our sponsor, directors, executive officers, advisors or their affiliates purchase shares in privately negotiated
transactions from public shareholders who have already elected to exercise their redemption rights, such selling shareholders
would be required to revoke their prior elections to redeem their shares. The purpose of any such transaction could be to (1)
vote in favor of the business combination and thereby increase the likelihood of obtaining shareholder approval of the business
combination, (2) reduce the number of public warrants outstanding or vote such warrants on any matters submitted to the warrant
holders for approval in connection with our initial business combination or (3) 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. Any such purchases of our securities 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 Class A ordinary shares or public warrants may be reduced and the number of beneficial holders of our
securities may be reduced, which may make it difficult to maintain or obtain the quotation, listing or trading of our securities
on a national securities exchange. Any such purchases will be reported pursuant to Section 13 and Section 16 of the Exchange Act
to the extent such purchasers are subject to such reporting requirements.
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 proxy rules or tender offer 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 proxy solicitation or tender
offer materials, as applicable, such shareholder may not become aware of the opportunity to redeem its shares. In addition, the
proxy solicitation or tender offer 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 redeem
or tender public shares. In the event that a shareholder fails to comply with these procedures, its shares may not be redeemed.
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 consummated our initial business combination within the required
time period, our public shareholders may receive only approximately $10.00 per public share, or less in certain circumstances,
on the liquidation of our trust account 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.
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, we are obligated to offer holders of our public
shares the right to redeem their shares for cash at the time of our initial business combination in conjunction with a shareholder
vote or via a tender offer. Target companies will be aware that this may 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 consummated our initial business combination within the required time period, our public shareholders
may receive only approximately $10.00 per public share, or less in certain circumstances, on the liquidation of our trust account
and our warrants will expire worthless. See “- 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 $10.00 per public
share” and other risk factors herein.
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 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 holders who choose
to retain their securities following the business combination could suffer a reduction in the value of their securities. Such
holders are unlikely to have a remedy for such reduction in value.
If
we have not consummated an initial business combination within 24 months from the closing of the Initial Public Offering, our
public shareholders may be forced to wait beyond such 24 months before redemption from our trust account.
If
we have not consummated an initial business combination within 24 months from the closing of the Initial Public Offering, the
proceeds then on deposit in the trust account, including interest earned on the funds held in the trust account and not previously
released to us to pay our income taxes, if any (less up to $100,000 of interest to pay dissolution expenses), will be used to
fund the redemption of our public shares, as further described herein. Any redemption of public shareholders from the trust account
will 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 Law. In that case, investors may be forced to wait beyond 24 months from the closing of the Initial
Public Offering 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 only then in cases where investors have sought to redeem
their Class A ordinary shares. Only upon our redemption or any liquidation will public shareholders be entitled to distributions
if we do not complete our initial business combination and do not amend certain provisions of our amended and restated memorandum
and articles of association. Our amended and restated memorandum and articles of association provide that, if we wind up for any
other reason prior to the consummation of our initial business combination, we will follow the foregoing procedures with respect
to the liquidation of the trust account as promptly as reasonably possible but not more than ten business days thereafter, subject
to applicable Cayman Islands law.
Because
we are neither limited to evaluating a target business in a particular industry sector nor have we selected 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 pursue business combination opportunities in any sector, except that 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 a development stage entity. Although
our officers and directors 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 units will
ultimately prove to be more favorable to investors than a direct investment, if such opportunity were available, in a business
combination target. Accordingly, any holders who choose to retain their securities following the business combination could suffer
a reduction in the value of their securities. Such holders are unlikely to have a remedy for such reduction in value.
We
may seek acquisition opportunities in industries or sectors which may or may not be outside of our management’s area of
expertise.
We
will consider a business combination outside of our management’s area of expertise if a business combination target 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 units
will not ultimately prove to be less favorable to investors in the Initial Public Offering 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 the information
contained in this Annual Report regarding the areas of 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. Accordingly, any holders who choose to retain their securities following the business combination
could suffer a reduction in the value of their securities. Such holders are unlikely to have a remedy for such reduction in value.
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 guidelines, such 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 consummated our initial business combination within
the required time period, our public shareholders may receive only approximately $10.00 per public share, or less in certain circumstances,
on the liquidation of our trust account and our warrants will expire worthless.
We
are not required to obtain an opinion from an independent accounting or investment banking firm, and consequently, you may have
no assurance from an independent source that the price we are paying for the business is fair to our shareholders 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 from an independent
investment banking firm or another independent entity that commonly renders valuation opinions that the price we are paying is
fair to our shareholders 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 proxy solicitation or tender offer 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 founder 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 authorize 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 preference shares, par value $0.0001 per share. At March 5, 2021, there were 475,000,000 and 4,375,000 authorized but unissued Class A ordinary shares and Class B ordinary shares, respectively, available for issuance which amount does not take into account shares reserved for issuance upon exercise of outstanding warrants or shares issuable upon conversion of the Class B ordinary shares, if any, or any shares issued upon the sale of the forward purchase shares or upon the exercise of the forward purchase warrants. The Class B ordinary shares will automatically convert into Class A ordinary shares (which such Class A ordinary shares delivered upon conversion will not have any redemption rights or be entitled to liquidating distributions from the trust account if we fail to consummate an initial business combination) at the time of our initial business combination or earlier at the option of the holders thereof as described herein and in our amended and restated memorandum and articles of association. There are no preference shares issued and outstanding.
We
may issue a substantial number of 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 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 as set forth herein. However, our amended and restated memorandum and articles of
association provide, among other things, that prior to or in connection with our initial business combination, we may not issue
additional shares that would entitle the holders thereof to (i) receive funds from the trust account or (ii) vote on any initial
business combination or on any other proposal presented to shareholders prior to or in connection with the completion of an initial
business combination. These provisions of our amended and restated memorandum and articles of association, like all provisions
of our amended and restated memorandum and articles of association, may be amended with a shareholder vote. The issuance of additional
ordinary or preference shares, including the issuance of the forward purchase securities:
● may
significantly dilute the equity interest of investors in the Initial Public Offering, 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 Class A ordinary shares if preference shares are issued with rights senior to those afforded
our Class A ordinary shares;
● could
cause a change in control if a substantial number of Class A 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
officers and directors;
● 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, Class A ordinary shares and/or warrants; and
● may
not result in adjustment to the exercise price of our warrants.
Unlike
some other similarly structured blank check companies, our sponsor will receive additional Class A ordinary shares if we issue
shares to consummate an initial business combination.
The
founder shares will automatically convert into Class A ordinary shares (which such Class A ordinary shares delivered upon conversion
will not have any redemption rights or be entitled to liquidating distributions from the trust account if we fail to consummate
an initial business combination) at the time of our initial business combination or earlier at the option of the holders thereof
at a ratio such that the number of Class A ordinary shares issuable upon conversion of all founder shares will equal, in the aggregate,
on an as-converted basis, 20% of the sum of (i) the total number of ordinary shares issued and outstanding, plus (ii) the total
number of Class A ordinary shares issued or deemed issued or issuable upon conversion or exercise of any equity-linked securities
or rights issued or deemed issued, by the Company in connection with or in relation to the consummation of the initial business
combination, excluding the forward purchase securities and any Class A ordinary shares or equity-linked securities exercisable
for or convertible into Class A ordinary shares issued, deemed issued, or to be issued, to any seller in the initial business
combination and any private placement warrants issued to our sponsor, any of its affiliates or any members of our management team
upon conversion of working capital loans. In no event will the Class B ordinary shares convert into Class A ordinary shares at
a rate of less than one-to-one. This is different than some other similarly structured blank check companies in which our sponsor
will only be issued an aggregate of 20% of the total number of shares to be outstanding prior to the initial business combination.
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 consummated our initial business combination within the required
time period, our public shareholders may receive only approximately $10.00 per public share, or less in certain circumstances,
on the liquidation of our trust account and our warrants will expire worthless.
The
investigation of each specific target business and the negotiation, drafting and execution of relevant agreements, disclosure
documents and other instruments requires 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 consummated our initial business combination within the required
time period, our public shareholders may receive only approximately $10.00 per public share, or less in certain circumstances,
on the liquidation of our trust account and our warrants will expire worthless.
We
may reincorporate in another jurisdiction in connection with our initial business combination and such reincorporation may result
in taxes imposed on shareholders.
We
may, in connection with our initial business combination and subject to requisite shareholder approval under the Companies Law,
reincorporate in the jurisdiction in which the target company or business is located or in another jurisdiction. The transaction
may require a shareholder or warrant holder to recognize taxable income 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. We do not intend to make any
cash distributions to shareholders or warrant holders 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.
After
our initial business combination, it is possible that a majority of our directors and officers will live outside the United States
and 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 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.
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, executive officers or directors which may raise potential conflicts of interest.
In
light of the involvement of our sponsor, executive officers and directors with other entities, we may decide to acquire one or
more businesses affiliated with our sponsor, executive officers or directors. Our directors also serve as officers and board members
for other entities, including, without limitation, those described under “Directors, Executive Officers and Corporate
Governance.”
Our
Founders, sponsor, officers and directors may sponsor, form or participate in other blank check companies similar to ours during
the period in which we are seeking an initial business combination. Such entities may compete with us for business combination
opportunities. Our Founders, sponsor, officers and directors are not currently aware of any specific opportunities for us to complete
our initial business combination with any entities with which they are affiliated, and there have been no substantive discussions
concerning a business combination with any such entity or entities.
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 an initial business combination and such transaction
was approved by a majority of our independent and disinterested directors. Despite our agreement to obtain an opinion from an
independent investment banking firm or another 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, executive officers or directors, 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 sponsor, executive officers and directors will lose their entire investment in us if our initial business combination is not
completed (other than with respect to public shares they may acquire during or the Initial Public Offering), a conflict of interest
may arise in determining whether a particular business combination target is appropriate for our initial business combination.
On
August 21, 2020, our sponsor paid $25,000, or approximately $0.003 per share, to cover certain of our offering and formation costs
in consideration of 7,187,500 Class B ordinary shares, par value $0.0001 (937,500 of which was forfeited by our sponsor in connection
with the Initial Public Offering). Prior to the initial investment in the Company of $25,000 by our sponsor, the Company had no
assets, tangible or intangible. The per-share price of the founder shares was determined by dividing the amount contributed to
the Company by the number of founder shares issued. The founder shares will be worthless if we do not complete an initial business
combination. In addition, our sponsor purchased an aggregate of 4,666,667 private placement warrants, each exercisable to purchase
one Class A ordinary share at $11.50 per share, subject to adjustment, at a price of $1.50 per warrant ($7,000,000 in the aggregate),
in a private placement that closed simultaneously with the closing of the Initial Public Offering. If we do not consummate an
initial business combination within 24 months from the closing of the Initial Public Offering, the private placement warrants
will expire worthless. The personal and financial interests of our executive officers and directors 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 24-month anniversary of the
closing of the Initial Public Offering nears, which is generally the deadline for our consummation of an initial business combination.
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.
Although
we have no commitments to issue any notes or other debt securities, or to otherwise incur outstanding debt, we may choose to incur
substantial debt to complete our initial business combination. We and our officers 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 Class A 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 Class A 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 only be able to complete one business combination with the proceeds of the Initial Public Offering and the sale of the private
placement warrants and forward purchase units, 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 economic, competitive and regulatory developments. 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 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 (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.
Our
management may not be able to maintain control of a target business after our initial business combination. Upon the loss of control
of a target business, new management may not possess the skills, qualifications or abilities necessary to profitably operate such
business.
We
may structure our initial business combination so that the post-business combination 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 only complete such business
combination if the post-business combination company owns or acquires 50% or more of the 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-business combination 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 the business combination. For example, we could pursue a transaction in which we
issue a substantial number of new Class A ordinary shares in exchange for all of the outstanding capital stock, shares or other
equity interests of a target. 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 Class A ordinary shares, our shareholders immediately prior to such transaction could own less
than a majority of our outstanding Class A 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
control of the target business.
We
may seek business combination opportunities with a high degree of complexity that require significant operational improvements,
which could delay or prevent us from achieving our desired results.
We
may seek business combination opportunities with large, highly complex companies that we believe would benefit from operational
improvements. While we intend to implement such improvements, to the extent that our efforts are delayed or we are unable to achieve
the desired improvements, the business combination may not be as successful as we anticipate.
To
the extent we complete our initial business combination with a large complex business or entity with a complex operating structure,
we may also be affected by numerous risks inherent in the operations of the business with which we combine, which could delay
or prevent us from implementing our strategy. Although our management team will endeavor to evaluate the risks inherent in a particular
target business and its operations, we may not be able to properly ascertain or assess all of the significant risk factors until
we complete our business combination. If we are not able to achieve our desired operational improvements, or the improvements
take longer to implement than anticipated, we may not achieve the gains that we anticipate. Furthermore, some of these risks and
complexities may be outside of our control and leave us with no ability to control or reduce the chances that those risks and
complexities will adversely impact a target business. Such combination may not be as successful as a combination with a smaller,
less complex organization.
We
do not have a specified maximum redemption threshold. The absence of such a redemption threshold may make it possible for us to
complete our initial 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
either prior to or upon consummation of an initial business combination (so that we do not then become subject to the SEC’s
“penny stock” rules). 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, officers,
directors, advisors or their affiliates. In the event the aggregate cash consideration we would be required to pay for all Class
A ordinary 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, all Class A 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 recent past, amended various provisions
of their charters and other 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 our shareholders may not support.
In
order to effectuate a business combination, blank check companies have, in the recent past, amended various provisions of their
charters and governing instruments, including their warrant agreements. For example, blank check companies have amended the definition
of business combination, increased redemption thresholds, 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, meaning the approval of holders of at least two-thirds of our ordinary shares
who attend and vote at a general meeting of the Company, and amending our warrant agreement will require a vote of holders of
at least 50% of the public warrants, solely with respect to any amendment to the terms of the private placement warrants or any
provision of the warrant agreement with respect to the private placement warrants, 50% of the number of the then outstanding private
placement warrants and, solely with respect to any amendment to the terms of the forward purchase warrants or any provision of
the warrant agreement with respect to the forward purchase warrants, 50% of the number of the then outstanding forward purchase
warrants. In addition, our amended and restated memorandum and articles of association require us to provide our public shareholders
with the opportunity to redeem their public shares for cash if we propose an amendment to our amended and restated memorandum
and articles of association (A) that would modify the substance or timing of our obligation to provide holders of our Class A
ordinary shares the right to have their shares redeemed 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 24 months from the closing of the Initial Public
Offering or (B) with respect to any other provision relating to the rights of holders of our Class A ordinary shares. 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.
The
provisions of our amended and restated memorandum and articles of association that relate to the rights of holders of our Class
A ordinary shares (and corresponding provisions of the agreement governing the release of funds from our trust account) may be
amended with the approval of a special resolution which requires the approval of the holders of at least two-thirds of our ordinary
shares who attend and vote at a general meeting of the Company, 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
to facilitate the completion of an initial business combination that some of our shareholders may not support.
Some
other blank check companies have a provision in their charter which prohibits the amendment of certain of its provisions, including
those which relate to the rights of a company’s shareholders, without approval by a certain percentage of the Company’s
shareholders. In those companies, amendment of these provisions typically requires approval by between 90% and 100% of the Company’s
shareholders. Our amended and restated memorandum and articles of association provide that any of its provisions related to the
rights of holders of our Class A ordinary shares (including the requirement to deposit proceeds of the Initial Public Offering
and the private placement of warrants into the trust account and not release such amounts except in specified circumstances, and
to provide redemption rights to public shareholders as described herein) may be amended if approved by special resolution, meaning
holders of at least two-thirds of our ordinary shares who attend and vote at a general meeting of the Company, and corresponding
provisions of the trust agreement governing the release of funds from our trust account may be amended if approved by holders
of at least 65% of our ordinary shares; provided that the provisions of our amended and restated memorandum and articles of association
governing the appointment or removal of directors prior to our initial business combination may only be amended by a special resolution
passed by not less than two-thirds of our ordinary shares who attend and vote at our general meeting which shall include the affirmative
vote of a simple majority of our Class B ordinary shares. Our sponsor owns, on an as-converted basis, 20% of our Class A ordinary
shares, will 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 a business combination with which you do not agree. Our shareholders
may pursue remedies against us for any breach of our amended and restated memorandum and articles of association.
Our
sponsor, executive officers, directors and director nominees have agreed, pursuant to agreements with us, that they will not propose
any amendment to our amended and restated memorandum and articles of association (A) that would modify the substance or timing
of our obligation to provide holders of our Class A ordinary shares the right to have their shares redeemed 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 24 months from the closing of the Initial Public Offering or (B) with respect to any other provision relating to the rights
of holders of our Class A ordinary shares, unless we provide our public shareholders with the opportunity to redeem their Class
A ordinary shares upon approval of any such amendment at a per-share price, payable in cash, equal to the aggregate amount then
on deposit in the trust account, including interest earned on the funds held in the trust account and not previously released
to us to pay our income taxes, if any, divided by the number of the then-outstanding public shares. Our shareholders are not parties
to, or third-party beneficiaries of, these agreements and, as a result, will not have the ability to pursue remedies against our
sponsor, executive officers, directors or director nominees for any breach of these agreements. As a result, in the event of a
breach, our shareholders would need to pursue a shareholder derivative action, subject to applicable law.
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 we have not consummated
our initial business combination within the required time period, our public shareholders may receive only approximately $10.00
per public share, or less in certain circumstances, on the liquidation of our trust account and our warrants will expire worthless.
Although
we believe that the net proceeds of the Initial Public Offering and the sale of the private placement warrants and the forward
purchase units will be sufficient to allow us to complete our initial business combination, because we have not yet selected any
prospective target business we cannot ascertain the capital requirements for any particular transaction. If the net proceeds of
the Initial Public Offering and the sale of the private placement warrants and forward purchase units 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. The current economic environment may make it
difficult for companies to obtain acquisition financing. 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. If we have not consummated our initial business
combination within the required time period, our public shareholders may receive only approximately $10.00 per public share, or
less in certain circumstances, on the liquidation of our trust account and our warrants will expire worthless. 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. Other than in connection with the Empower Funding forward purchase
agreement, none of our officers, directors or shareholders is required to provide any financing to us in connection with or after
our initial business combination.
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, or 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 statements in time for us to disclose such statements in accordance with federal proxy rules
and complete our initial business combination within the prescribed time frame.
Risks
Associated with Acquiring and Operating a Business in Foreign Countries
If
we pursue a target 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
we pursue a target 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 jurisdiction, 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;
● rules
and regulations regarding currency redemption;
● complex
corporate withholding taxes on individuals;
● laws
governing the manner in which future business combinations may be effected;
● exchange
listing and/or delisting requirements;
● tariffs
and trade barriers;
● regulations
related to customs and import/export matters;
● local
or regional economic policies and market conditions;
● unexpected
changes in regulatory requirements;
● longer
payment cycles;
● tax
issues, such as tax law changes and variations in tax laws as compared to the United States;
● currency
fluctuations and exchange controls;
● rates
of inflation;
● challenges
in collecting accounts receivable;
● cultural
and language differences;
● employment
regulations;
● underdeveloped
or unpredictable legal or regulatory systems;
● corruption;
● protection
of intellectual property;
● social
unrest, crime, strikes, riots and civil disturbances;
● regime
changes and political upheaval;
● terrorist
attacks, natural disasters and wars; and
● deterioration
of political relations with the United States.
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 combination, our operations might suffer, either of which may adversely impact our
business, financial condition and results of operations.
If
our management following our initial business combination is unfamiliar with United States 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, our management may resign from their positions as officers or directors of the Company and the
management of the target business at the time of the business combination will remain in place. Management of the target business
may not be familiar with United States securities laws. If new management is unfamiliar with United States 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.
After
our initial business combination, substantially all of our assets may be located in a foreign country and substantially all of
our revenue may be derived from our operations in any such country. Accordingly, our results of operations and prospects will
be subject, to a significant extent, to the economic, political and social conditions 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.
Exchange
rate fluctuations and currency policies may cause a target business’ ability to succeed in the international markets to
be diminished.
In
the event we acquire a non-U.S. target, all revenues and income would likely be received in a foreign currency, and the dollar
equivalent of our net assets and distributions, if any, could be adversely affected by reductions in the value of the local currency.
The value of the currencies in our target regions fluctuate and are affected by, among other things, changes in political and
economic conditions. Any change in the relative value of such currency against our reporting currency may affect the attractiveness
of any target business or, following consummation of our initial business combination, our financial condition and results of
operations. Additionally, if a currency appreciates in value against the dollar prior to the consummation of our initial business
combination, the cost of a target business as measured in dollars will increase, which may make it less likely that we are able
to consummate such transaction.
We
may reincorporate in another jurisdiction in connection with our initial business combination, and the laws of such jurisdiction
may govern some or all of our future material agreements and we may not be able to enforce our legal rights.
In
connection with our initial business combination, we may relocate the home jurisdiction of our business from the Cayman Islands
to another jurisdiction. If we determine to do this, the laws of such jurisdiction may govern some or all of our future material
agreements. The system of laws and the enforcement of existing laws in such jurisdiction may not be as certain in implementation
and interpretation as in the United States. The inability to enforce or obtain a remedy under any of our future agreements could
result in a significant loss of business, business opportunities or capital.
We
are subject to changing law and regulations regarding regulatory matters, corporate governance and public disclosure that have
increased both our costs and the risk of non-compliance.
We
are subject to rules and regulations by various governing bodies, including, for example, the SEC, which are charged with the
protection of investors and the oversight of companies whose securities are publicly traded, and to new and evolving regulatory
measures under applicable law. Our efforts to comply with new and changing laws and regulations have resulted in and are likely
to continue to result in, increased general and administrative expenses and a diversion of management time and attention from
seeking a business combination target.
Moreover,
because these laws, regulations and standards are subject to varying interpretations, their application in practice may evolve
over time as new guidance becomes available. This evolution may result in continuing uncertainty regarding compliance matters
and additional costs necessitated by ongoing revisions to our disclosure and governance practices. If we fail to address and comply
with these regulations and any subsequent changes, we may be subject to penalty and our business may be harmed.
If
we effect an initial business combination with a company located outside of the United States, the laws applicable to such company
will likely govern all of our material agreements and we may not be able to enforce our legal rights.
If
we effect an initial business combination with a company located outside of the United States, the laws of the country in which
such company operates will likely govern almost all of the material agreements relating to its operations. We cannot assure you
that the target business will be able to enforce any of its material agreements or that remedies will be available in this new
jurisdiction. The system of laws and the enforcement of existing laws in such jurisdiction may not be as certain in implementation
and interpretation as in the United States. The inability to enforce or obtain a remedy under any of our future agreements could
result in a significant loss of business, business opportunities or capital.
Risks
Related to Ownership of Our Securities
You
will not have any rights or interests in funds from the trust account, except under certain limited circumstances. Therefore,
to liquidate your investment, you may be forced to sell your public shares 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: (i) 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, (ii) the redemption of any public shares properly tendered 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 provide holders of our Class A ordinary shares the right to have their shares redeemed
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 24 months from the closing of the Initial Public Offering or (B) with respect to any other provision relating
to the rights of holders of our Class A ordinary shares, and (iii) the redemption of our public shares if we have not consummated
an initial business within 24 months from the closing of the Initial Public Offering, subject to applicable law and as further
described herein. Public shareholders who redeem their Class A ordinary shares in connection with a shareholder vote described
in clause (ii) 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 24 months
from the closing of the Initial Public Offering, with respect to such Class A ordinary shares so redeemed. In no other circumstances
will a public shareholder have any right or interest of any kind 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 or warrants, potentially at a loss.
The
NYSE 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 the NYSE in the future or prior to our initial business combination.
In order to continue listing our securities on the NYSE prior to our initial business combination, we must maintain certain financial,
distribution and share price levels, such as a minimum market capitalization (generally $50,000,000) and a minimum number of holders
of our securities (generally 300 public holders). Additionally, our units will not be traded after completion of our initial business
combination and, in connection with our initial business combination, we will be required to demonstrate compliance with the NYSE
initial listing requirements, which are more rigorous than the NYSE continued listing requirements, in order to continue to maintain
the listing of our securities on the NYSE. For instance, our share price would generally be required to be at least $4.00 per
share, our total market capitalization would be required to be at least $200.0 million, the aggregate market value of publicly
held shares would be required to be at least $100.0 million and we would be required to have at least 400 round lot shareholders.
We may not be able to meet those listing requirements at that time, especially if there are a significant number of redemptions
in connection with our initial business combination.
If
the NYSE delists our securities from trading on its exchange and we are not able to list our securities on another national securities
exchange, we expect our 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 preempts the states from regulating the sale of certain securities, which are referred to as “covered securities.” Our Class A ordinary shares and warrants qualify as covered securities under the statute because they are listed on the NYSE. Although the states are preempted 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 the NYSE, our securities would not qualify as covered securities under the statute and we would be subject to regulation in each state in which we offer our securities.
Our
security holders are not entitled to protections normally afforded to investors of many other blank check companies.
Since
the net proceeds of the Initial Public Offering and the sale of the private placement warrants are intended to be used to complete
an initial business combination with a target business that has not been selected, we may be deemed to be a “blank check”
company under the United States securities laws. However, because we have net tangible assets in excess of $5,000,000 as a result
of the completion of the Initial Public Offering and the sale of the private placement warrants and filed a Current Report on
Form 8-K, including an audited balance sheet demonstrating this fact, we are exempt from rules promulgated by the SEC to protect
investors in blank check companies, such as Rule 419. Accordingly, investors are not be afforded the benefits or protections of
those rules. Among other things, this means our units were immediately tradable and 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 were 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.
We
may not hold an annual general meeting until after the consummation of our initial business combination.
In
accordance with the NYSE 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 the NYSE. There is no requirement under the Companies Law 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 appoint directors and to discuss company affairs with management. Our board of directors is
divided into three classes with only one class of directors being appointed in each year and each class (except for those directors
appointed prior to our first annual general meeting) serving a three-year term.
Holders
of Class A ordinary shares will not be entitled to vote on any appointment of directors we hold prior to our initial business
combination.
Prior
to our initial business combination, only holders of our founder shares will have the right to vote on the appointment of directors.
Holders of our public shares will not be entitled to vote on the appointment of directors during such time. In addition, prior
to our initial business combination, holders of a majority of our founder shares may remove a member of the board of directors
for any reason. Accordingly, you may not have any say in the management of our company prior to the consummation of an initial
business combination.
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 in our initial 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 within twenty business days of the closing of an initial business
combination.
The
grant of registration rights to our sponsor and the forward purchase investors 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.
Pursuant
to an agreement entered into on October 6, 2020, prior to the closing of the Initial Public Offering, our sponsor and its permitted
transferees can demand that we register the resale of the Class A ordinary shares into which founder shares are convertible, the
private placement warrants and the Class A ordinary shares issuable upon exercise of the private placement warrants, and warrants
that may be issued upon conversion of working capital loans and the Class A ordinary shares issuable upon conversion of such warrants.
Pursuant to the forward purchase agreement, we agree that we will use our commercially reasonable efforts to (i) within 30 days
after the closing of the initial business combination, file a registration statement with the SEC for a secondary offering of
(A) the forward purchase shares, (B) the Class A ordinary shares issuable upon exercise of the forward purchase warrants and (c)
any other Class A ordinary shares acquired by the forward purchase investors, including any acquired after we complete our initial
business combination, (ii) cause such registration statement to be declared effective promptly thereafter, but in no event later
than 90 days after the closing of the initial business combination and (iii) maintain the effectiveness of such registration statement
and to ensure the registration statement does not contain a material omission or misstatement, including by way of amendment or
other update, as required, until the earlier of (A) the date on which a forward purchase investor ceases to hold the securities
covered thereby and (B) the date all of the securities covered thereby can be sold publicly without restriction or limitation
under Rule 144 under the Securities Act, and without the requirement to be in compliance with Rule 144(c)(1) under the Securities
Act, subject to certain conditions and limitations set forth in the forward purchase agreement. 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 securities
that is expected when the securities owned by our sponsor or its permitted transferees are registered for resale.
We
have not registered the Class A ordinary shares issuable upon exercise of the warrants under the Securities Act or any state securities
laws at this time, and such registration may not be in place when an investor desires to exercise warrants, thus precluding such
investor from being able to exercise its warrants except on a cashless basis and potentially causing such warrants to expire worthless.
We
have not registered the Class A ordinary shares issuable upon exercise of the warrants under the Securities Act or any state securities
laws at this time. However, under 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 with the SEC a registration statement covering the issuance of such shares, and we will use our commercially reasonable
efforts to cause the same to become effective within 60 business days after the closing of our initial business combination and
to maintain the effectiveness of such registration statement and a current prospectus relating to those Class A ordinary shares
until the warrants expire or are redeemed. 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, complete or correct or the SEC issues a stop order.
If the shares issuable upon exercise of the warrants are not registered under the Securities Act in accordance with the above
requirements, we will be required to permit holders to exercise their warrants on a cashless basis, in which case, the number
of Class A ordinary shares that you will receive upon cashless exercise will be based on a formula subject to a maximum amount
of shares equal to 0.361 Class A ordinary shares per warrant (subject to adjustment). However, no warrant will 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 is available. Notwithstanding the above, 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
a “covered security” under Section 18(b)(1) of the Securities Act, we may, at our option, require holders of public
warrants who exercise their warrants to do so on a “cashless basis” in accordance with Section 3(a)(9) of the Securities
Act and, in the event we so elect, we will not be required to file or maintain in effect a registration statement, but we will
use our commercially reasonable efforts to register or qualify the shares under applicable blue sky laws to the extent an exemption
is not available. Exercising the warrants on a cashless basis could have the effect of reducing the potential “upside”
of the holder’s investment in our company because the warrant holder will hold a smaller number of Class A ordinary shares
upon a cashless exercise of the warrants they hold. In no event will we be required to net cash settle any warrant, or issue securities
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 applicable state securities laws and no exemption is available. If the issuance of the shares upon exercise
of the warrants is not so registered or qualified or exempt from registration or qualification, the holder of such warrant shall
not be entitled to exercise such warrant and such warrant 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. There may be a circumstance where an exemption from registration exists for holders of our private placement
warrants to exercise their warrants while a corresponding exemption does not exist for holders of the public warrants included
as part of units sold in the Initial Public Offering. In such an instance, our sponsor and its permitted transferees (which may
include our directors and executive officers) would be able to exercise their warrants and sell the ordinary shares underlying
their warrants while holders of our public warrants would not be able to exercise their warrants and sell the underlying ordinary
shares. 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 Class A ordinary shares for sale under all applicable state securities laws. As a result, we may redeem
the warrants as set forth above even if the holders are otherwise unable to exercise their warrants.
Our
sponsor controls a substantial interest in us and thus may exert a substantial influence on actions requiring a shareholder vote,
potentially in a manner that you do not support.
Our
sponsor owns, on an as-converted basis, 20% of our issued and outstanding ordinary shares. Accordingly, it may exert a substantial
influence on 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. If our sponsor purchases any additional Class A ordinary shares in
the aftermarket or in privately negotiated transactions, this would increase its control. Neither our sponsor nor, to our knowledge,
any of our officers or directors, have any current intention to purchase additional securities other the forward purchase agreement
further described herein under the section entitled “Certain Relationships and Related Transactions, and Director Independence
- Forward Purchase Agreement.” Factors that would be considered in making such additional purchases would include
consideration of the current trading price of our Class A ordinary shares. In addition, our board of directors, whose members
were appointed by our sponsor, is and will be divided into three classes, each of which will generally serve for a term of three
years with only one class of directors being appointed in each year. We may not hold an annual general meeting to appoint new
directors prior to the completion of our initial business combination, in which case all of the current directors will continue
in office until at least the completion of the business combination. If there is an annual general meeting, as a consequence of
our “staggered” board of directors, only a minority of the board of directors will be considered for appointment and
our sponsor, because of its ownership position, will control the outcome, as only holders of our Class B ordinary shares will
have the right to vote on the appointment of directors and to remove directors prior to our initial business combination. In addition,
the founder shares, all of which are held by our sponsor, will, in a vote to transfer the Company by way of continuation out of
the Cayman Islands to another jurisdiction (which requires the approval of at least two thirds of the votes of all ordinary shares),
entitle the holders to ten votes for every founder share. This provision of our amended and restated memorandum and articles of
association may only be amended by a special resolution passed by a majority of at least two-thirds of our ordinary shares voting
in a general meeting. As a result, you will not have any influence over our continuation in a jurisdiction outside the Cayman
Islands prior to our initial business combination. Accordingly, our sponsor will continue to exert control at least until the
completion of our initial business combination. In addition, we have agreed not to enter into a definitive agreement regarding
an initial business combination without the prior consent of our sponsor.
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. As a result, the exercise price of your warrants could be increased,
the exercise period could be shortened and the number of our Class A ordinary shares purchasable upon exercise of a warrant could
be decreased, all without your approval.
Our
warrants were issued in registered form under a warrant agreement between Continental Stock Transfer & Trust Company, as warrant
agent, and us. The warrant agreement provides that 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 s, or defective provision (ii) amending the provisions
relating to cash dividends on ordinary shares as contemplated by and in accordance with the warrant agreement 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, provided that the approval by the holders of at least 50% of the then-outstanding public warrants is required
to make any change that adversely affects the interests of the registered holders of public 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, solely with respect to any amendment to the terms of the private placement warrants or any provision
of the warrant agreement with respect to the private placement warrants, 50% of the number of the then outstanding private placement
warrants and, solely with respect to any amendment to the terms of the forward purchase warrants or any provision of the warrant
agreement with respect to the forward purchase warrants, 50% of the number of the then outstanding forward purchase warrants.
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, convert the warrants into cash, shorten the exercise period or decrease the number of Class A ordinary shares purchasable
upon exercise of a warrant.
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 will 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 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.
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 the outstanding public warrants at any time after they become exercisable and prior to their expiration,
at a price of $0.01 per warrant, provided that the closing price of our Class A ordinary shares equals or exceeds $18.00 per share
(as adjusted for adjustments to the number of shares issuable upon exercise or the exercise price of a warrant) for any 20 trading
days within a 30 trading-day period ending on the third trading day prior to proper notice of such redemption and provided that
certain other conditions are met. 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 warrants as set forth above even if the holders are otherwise unable to exercise the warrants. Redemption of
the outstanding warrants could force you to (i) exercise your warrants and pay the exercise price therefor at a time when it may
be disadvantageous for you to do so, (ii) sell your warrants at the then-current market price when you might otherwise wish to
hold your warrants or (iii) 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.
In
addition, we have the ability to redeem the outstanding public warrants at any time after they become exercisable and prior to
their expiration, at a price of $0.10 per warrant upon a minimum of 30 days’ prior written notice of redemption provided
that the closing price of our Class A ordinary shares equals or exceeds $10.00 per share (as adjusted for adjustments to the number
of shares issuable upon exercise or the exercise price of a warrant) for any 20 trading days within a 30 trading-day period ending
on the third trading day prior to proper notice of such redemption and provided that certain other conditions are met, including
that holders will be able to exercise their warrants prior to redemption for a number of Class A ordinary shares determined based
on the redemption date and the fair market value of our Class A ordinary shares. The value received upon exercise of the warrants
(1) may be less than the value the holders would have received if they had exercised their warrants at a later time where the
underlying share price is higher and (2) may not compensate the holders for the value of the warrants, including because the number
of ordinary shares received is capped at 0.361 Class A ordinary shares per warrant (subject to adjustment) irrespective of the
remaining life of the warrants.
Our
warrants 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.
In connection with our Initial Public Offer, we issued warrants to purchase 8,333,333 of our Class A ordinary shares, we issued in a private placement an aggregate of 4,666,667 private placement warrants, each exercisable to purchase one Class A ordinary share at $11.50 per share, subject to adjustment. We also plan to issue 1,666,667 forward purchase warrants pursuant to the forward purchase agreement. In addition, if our sponsor, its affiliates or a member of our management team makes any working capital loans, it may convert up to $2,000,000 of such loans into up to an additional 666,667 private placement warrants, at the price of $1.50 per warrant. We may also issue Class A ordinary shares in connection with our redemption of our warrants.
To
the extent we issue ordinary shares for any reason, including 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 could make us a less attractive
acquisition vehicle to a target business. Such warrants, when exercised, 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 transaction. Therefore,
our warrants may make it more difficult to effectuate a business transaction or increase the cost of acquiring the target business.
Because
each unit contains one-third of one redeemable warrant and only a whole warrant may be exercised, the units may be worth less
than units of other blank check companies.
Each
unit contains one-third of one redeemable warrant. Pursuant to the warrant agreement, no fractional warrants will be issued upon
separation of the units, and only whole units will trade. If, upon exercise of the warrants, a holder would be entitled to receive
a fractional interest in a share, we will, upon exercise, round down to the nearest whole number the number of Class A ordinary
shares to be issued to the warrant holder. 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 one-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 merger partner for target businesses. Nevertheless, this unit structure may cause our units
to be worth less than if a unit included a warrant to purchase one whole share.
A
provision of our warrant agreement may make it more difficult for us to consummate an initial business combination.
Unlike
most blank check companies, if (i) we issue additional Class A ordinary shares or equity-linked securities, excluding the forward
purchase securities, for capital raising purposes in connection with the closing of our initial business combination at a newly
issued price of less than $9.20 per ordinary share, (with such issue price or effective issue price to be determined in good faith
by the Company’s 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”), (ii) 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 consummation of our initial
business combination (net of redemptions), and (iii) 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 prices 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 ‘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.
A
market for our securities may not fully develop or be sustained, which would adversely affect the liquidity and price of our securities.
The
price of our securities may vary significantly due to one or more potential business combinations and general market or economic
conditions, including as a result of the COVID-19 outbreak. An active trading market for our securities may not fully develop
or be sustained. Additionally, if our securities become delisted from the NYSE for any reason, and are quoted on the OTC Pink
Sheets, an inter-dealer automated quotation system for equity securities not listed on a national exchange, the liquidity and
price of our securities may be more limited than if we were listed on the NYSE or another national exchange. You may be unable
to sell your securities unless a market can be fully developed and sustained.
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 executive officers, or enforce judgments obtained in the United
States courts against our directors or officers.
Our
corporate affairs are governed by our amended and restated memorandum and articles of association, the Companies Law (as the same
may be supplemented or amended from time to time) and the common law of the Cayman Islands. We are also subject to the federal
securities laws of the United States. 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.
We
have been advised by Maples and Calder, our Cayman Islands legal counsel, that the courts of the Cayman Islands are unlikely (i)
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 (ii) 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.
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 a staggered board of directors, the ability
of the board of directors to designate the terms of and issue new series of preference shares, and the fact that prior to the
completion of our initial business combination only holders of our Class B ordinary shares, which have been issued to our sponsor,
are entitled to vote on the appointment of directors, 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.
Since
only holders of our founder shares have the right to vote on the appointment of directors, the NYSE may consider us to be a “controlled
company” within the meaning of the NYSE rules and, as a result, we may qualify for exemptions from certain corporate governance
requirements.
Only
holders of our founder shares have the right to vote on the appointment of directors. As a result, the NYSE may consider us to
be a “controlled company” within the meaning of the NYSE corporate governance standards. Under the NYSE corporate
governance standards, a company of which more than 50% of the voting power is held by an individual, group or another company
is a “controlled company” and may elect not to comply with certain corporate governance requirements, including the
requirements that:
● we
have a board that includes a majority of “independent directors,” as defined under the rules of the NYSE;
● we
have a compensation committee of our board that is comprised entirely of independent directors with a written charter addressing
the committee’s purpose and responsibilities; and
● we
have a nominating and corporate governance committee of our board that is comprised entirely of independent directors with a written
charter addressing the committee’s purpose and responsibilities.
We
do not intend to utilize these exemptions and intend to comply with the corporate governance requirements of the NYSE, subject
to applicable phase-in rules. However, if we determine in the future to utilize some or all of these exemptions, you will not
have the same protections afforded to shareholders of companies that are subject to all of the NYSE corporate governance requirements.
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, 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 offence and may be liable for a fine of $18,292.68 and imprisonment for five years in the Cayman Islands.
Risks Related to Our Trust Account
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 $10.00 per public 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, 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 only enter into an agreement with a third-party that has not executed a waiver 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 management is 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 consummated an initial business combination within 24 months
from the closing of the Initial Public Offering, 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 ten years following redemption. Accordingly, the per-share redemption amount received by public shareholders could
be less than the $10.00 per public share initially held in the trust account, due to claims of such creditors. Pursuant to a letter
agreement entered into with our sponsor, 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 auditors) 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 amounts in the trust account to below the lesser
of (i) $10.00 per public share and (ii) the actual amount per public share held in the trust account as of the date of the liquidation
of the trust account if less than $10.00 per public share due to reductions in the value of the trust assets, in each case net
of the interest that may be withdrawn to pay our tax obligations, provided that such liability will not apply to any claims by
a third-party or prospective target business that executed a waiver of any and all rights to seek access to the trust account
nor will it apply 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.
However,
we have not asked our sponsor to reserve for such indemnification obligations, nor have we independently verified whether our
sponsor has sufficient funds to satisfy its indemnity obligations and we believe that our sponsor’s only assets are securities
of our company. Therefore, we cannot assure you that our sponsor would be able to satisfy those 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 $10.00 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 officers
or directors will indemnify us for claims by third parties including, without limitation, claims by vendors and prospective target
businesses.
The
securities in which we invest the proceeds held in the trust account could bear a negative rate of interest, which could reduce
the interest income available for payment of taxes or reduce the value of the assets held in trust such that the per share redemption
amount received by shareholders may be less than $10.00 per share.
The
net proceeds of the Initial Public Offering and certain proceeds from the sale of the private placement warrants held in the trust
account may only be invested in direct U.S. Treasury obligations having a maturity of 185 days or less, or in certain money market
funds which invest only in direct U.S. Treasury obligations. While short-term U.S. 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 of very low or negative yields, the amount
of interest income (which we may withdraw to pay income taxes, if any) would be reduced. In the event that we are unable to complete
our initial business combination, our public shareholders are entitled to receive their pro-rata share of the proceeds held in
the trust account, plus any interest income. If the balance of the trust account is reduced below $250,000,000 as a result of
negative interest rates, the amount of funds in the trust account available for distribution to our public shareholders may be
reduced below $10.00 per share.
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 (i) $10.00 per public share and (ii) the actual
amount per public share held in the trust account as of the date of the liquidation of the trust account if less than $10.00 per
public share due to reductions in the value of the trust assets, in each case net of the interest that may be withdrawn to pay
our tax obligations, 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 and subject to their fiduciary duties 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 $10.00 per public share.
We
may not have sufficient funds to satisfy indemnification claims of our directors and executive officers.
We
have agreed to indemnify our officers and directors to the fullest extent permitted by law. However, our officers and directors
have agreed to waive any right, title, interest or claim of any kind in or to any monies in the trust account and to not seek
recourse against the trust account for any reason whatsoever (except to the extent they are entitled to funds from the trust account
due to their ownership of public shares). Accordingly, any indemnification provided will be able to be satisfied by us only if
(i) we have sufficient funds outside of the trust account or (ii) we consummate an initial business combination. Our obligation
to indemnify our officers and directors may discourage shareholders from bringing a lawsuit against our officers or directors
for breach of their fiduciary duty. These provisions also may have the effect of reducing the likelihood of derivative litigation
against our officers and directors, even though such an action, if successful, might otherwise benefit us and our shareholders.
Furthermore, a shareholder’s investment may be adversely affected to the extent we pay the costs of settlement and damage
awards against our officers and directors pursuant to these indemnification provisions.
If,
after we distribute the proceeds in the trust account to our public shareholders, we file a bankruptcy or insolvency petition
or an involuntary bankruptcy or insolvency petition is filed against us that is not dismissed, a bankruptcy or insolvency 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 bankruptcy or insolvency petition
or an involuntary 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 bankruptcy or insolvency laws as either a “preferential transfer”
or a “fraudulent conveyance.” As a result, a bankruptcy or insolvency court 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, thereby exposing itself and us to claims of punitive damages, by paying public shareholders
from the trust account prior to addressing the claims of creditors.
If,
before distributing the proceeds in the trust account to our public shareholders, we file a bankruptcy or insolvency petition
or an involuntary 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 bankruptcy or insolvency petition
or an involuntary bankruptcy or insolvency petition is filed against us that is not dismissed, the proceeds held in the trust
account could be subject to applicable bankruptcy or insolvency law, and may be included in our bankruptcy or insolvency estate
and subject to the claims of third parties with priority over the claims of our shareholders. To the extent any bankruptcy or
insolvency claims deplete the trust account, the per-share amount that would otherwise be received by our shareholders in connection
with our liquidation may be reduced.
General Risk Factors
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.
In
order not to be regulated as an investment company under the Investment Company Act, unless we can qualify for an exclusion, we
must ensure that we are engaged primarily in a business other than investing, reinvesting or trading of securities and that our
activities do not include investing, reinvesting, owning, holding or trading “investment securities” constituting
more than 40% of our assets (exclusive of U.S. government securities and cash items) on an unconsolidated basis. Our business
will be to identify and complete a business combination and thereafter to operate the post-transaction business or assets for
the long term. We do not plan to buy businesses or assets with a view to resale or profit from their resale. We do not plan to
buy unrelated businesses or assets or to be a passive investor.
We
do not believe that our principal activities subject us to the Investment Company Act. To this end, the proceeds held in the trust
account may only be invested in United States “government securities” within the meaning of Section 2(a)(16) of the
Investment Company Act having a maturity of 185 days or less or in money market funds meeting certain conditions under Rule 2a-7
promulgated under the Investment Company Act which invest only in direct U.S. government treasury obligations. Pursuant to the
trust agreement, the trustee is not permitted to invest in other securities or assets. By restricting the investment of the proceeds
to these instruments, and by having a business plan targeted at acquiring and growing businesses for the long term (rather than
on buying and selling businesses in the manner of a merchant bank or private equity fund), we intend to avoid being deemed an
“investment company” within the meaning of the Investment Company Act. The trust account is intended as a holding
place for funds pending the earliest to occur of either: (i) the completion of our initial business combination; (ii) the redemption
of any public shares properly tendered 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 provide holders of our Class A ordinary shares
the right to have their shares redeemed 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 24 months from the closing of the Initial Public Offering or (B)
with respect to any other provision relating to the rights of holders of our Class A ordinary shares; or (iii) absent our completing
an initial business combination within 24 months from the closing of the Initial Public Offering, our return of the funds held
in the trust account to our public shareholders as part of our redemption of the public shares. If we do not invest the proceeds
as discussed above, we may be deemed to be subject to 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 consummated our initial business combination
within the required time period, our public shareholders may receive only approximately $10.00 per public 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 a failure to comply with any laws and regulations, may adversely affect our business, including our
ability to negotiate and complete our initial business combination, and results of operations.
We
are 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. 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
and those changes could have a material adverse effect on our business, investments 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.
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 beneficial owner of our Class
A ordinary shares or warrants who or that is for U.S. federal income tax purposes (i) an individual who is a citizen or resident
of the United States, (ii) a corporation (or other entity taxable as a corporation for U.S. federal income tax purposes) organized
in or under the laws of the United States, any state thereof or the District of Columbia or (iii) an estate or trust the income
of which is includible in gross income for U.S. federal income tax purposes regardless of its source or (iv) a trust if (A) a
court within the United States is able to exercise primary supervision over the administration of the trust and one or more U.S.
persons have the authority to control all substantial decisions of the trust or (B) it has in effect a valid election to be treated
as a U.S. person (a “U.S. holder”), such U.S. holder may be subject to certain adverse U.S. federal income tax consequences
and may be subject to additional reporting requirements. Our PFIC status for our current and subsequent taxable years may depend
on 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 can be no assurance that we will qualify for the start-up exception. Accordingly,
there can be no assurance with respect to our status as a PFIC for our current taxable year or any subsequent taxable year. Our
actual PFIC status for any taxable year, however, will not be determinable until after the end of such taxable year. Moreover,
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.
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 Class A ordinary shares
held by non-affiliates exceeds $700 million as of any June 30 before that time, in which case we would no longer be an emerging
growth company as of the following December 31. We cannot predict whether investors will find our securities less attractive because
we will rely on these exemptions. If some investors find our securities less attractive as a result of our reliance on these exemptions,
the trading prices of our securities may be lower than they otherwise would be, there may be a less active trading market for
our securities and the trading prices of our securities may be more volatile.
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 an 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 exceeds $250 million as of the prior June 30, or (2) our annual revenues exceeded $100
million during such completed fiscal year and the market value of our ordinary shares held by non-affiliates exceeds $700 million
as of the prior June 30. 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.
Compliance
obligations under the Sarbanes-Oxley Act may make it more difficult for us to effectuate a 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, 2021. 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 not 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.
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.

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ITEM 1B. UNRESOLVED STAFF COMMENTS
Item 1B.
Unresolved Staff Comments
None.

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ITEM 2. PROPERTIES
Item 2.
Properties
Our
executive offices are located at c/o MidOcean Partners 245 Park Avenue, 38th Floor New York, NY 10167, and our telephone number
is (212) 497-1400.

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ITEM 3. LEGAL PROCEEDINGS
Item 3.
Legal Proceedings
We
are not a party to and none of our property is subject to any material pending legal proceedings.

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ITEM 4. MINE SAFETY DISCLOSURE
Item 4.
Mine Safety Disclosures
Not
applicable.
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
Market
Information
Our
units, Class A common stock and warrants are traded on the NYSE under the symbols “EMPW.U”, “EMPW” and
“EMPW WS”, respectively. Our units, commenced public trading on October 9, 2020 and our Class A ordinary shares and
warrants began separate trading on November 27, 2020.
Holders
As
of February 24, 2021, the Depository Trust Company was the only holder of record for our units, Class A common stock, and public
warrants. Sponsor is the sole holder of record of our founder shares and private placement warrants.
Dividends
We
have not paid any cash dividends on our 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. Further, if we incur any indebtedness in connection with our business combination, our ability to declare dividends
may be limited by restrictive covenants we may agree to in connection therewith.
Securities
Authorized for Issuance Under Equity Compensation Plans
None.
Recent
Sales of Unregistered Securities; Use of Proceeds from Registered Offerings
Unregistered
Sales
On
August 21, 2020, our sponsor purchased 7,187,500 founder shares for an aggregate price of $25,000. Our sponsor agreed to forfeit
up to 937,500 founder shares to the extent that the over-allotment option was not exercised in full by the underwriters. The forfeiture
was to be adjusted to the extent that the over-allotment option was not exercised in full by the underwriters so that the founder
shares would represent 20.0% of our issued and outstanding shares after our Initial Public Offering. The underwriters declined
to exercise their 45-day over-allotment option in connection with our Initial Public Offering; thus, the 937,500 founder shares
were forfeited by our sponsor.
On
October 9, 2020, we consummated our Initial Public Offering of 25,000,000 Units at a price of $10.00 per unit, generating total
gross proceeds of $250,000,000. J.P. Morgan Securities LLC and Jefferies LLC acted as the book-running managers. The securities
sold in the offering were registered under the Securities Act on registration statements on Form S-1 (No. 333-248899). The registration
statements became effective on October 6, 2020 and registered the sale of a maximum of 28,750,000 units. Additionally, we granted
the underwriters in the Initial Public Offering a 45-day option from October 6, 2020 to purchase up to 3,750,000 additional units.
Simultaneously
with the consummation of the Initial Public Offering, we consummated a private placement of 4,666,667 private placement warrants
to our sponsor at a price of $1.50 per private placement warrant, generating total proceeds of $7,000,000. Such securities were
issued pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities Act.
The
private placement warrants are identical to the public warrants underlying the units sold in the Initial Public Offering, except
that the private placement warrants are not transferable, assignable or salable until 30 days after the completion of our initial
business combination, subject to certain limited exceptions.
Of
the gross proceeds received from the Initial Public Offering and the sale of the private placement warrants, $250,000,000 (consisting
of $245,000,000 of net proceeds from the Initial Public Offering, which amount includes $8,750,000 in the form of deferred underwriting
commissions, and $5,000,000 of proceeds from the sale of the private placement warrants) was placed in the trust account.
Use
of Proceeds
On
October 9, 2020, we consummated the Initial Public Offering of 25,000,000 units, at a price of $10.00 per unit, generating gross
proceeds of $250,000,000. Simultaneously with the closing of the Initial Public Offering, we consummated the sale of 4,666,667
private placement warrants to the sponsor at a price of $1.50 per private placement warrant generating gross proceeds of $7,000,000.
Following the Initial Public Offering, and the sale of the private placement warrants, a total of $250,000,000 was placed in the
trust account, and we had $1,122,742 of cash held outside of the trust account, after payment of costs related to the Initial
Public Offering, and available for working capital purposes. We incurred $14,215,163 in transaction costs, including $5,000,000
of underwriting fees, $8,750,000 of deferred underwriting fees and $465,163 of other costs.
We
paid a total of $5,000,000 in underwriting discounts and commissions and $465,163 for other costs and expenses related to the
Initial Public Offering. In addition, the underwriters agreed to defer $8,750,000 in underwriting discounts and commissions. The
underwriters are entitled to a deferred fee of $0.35 per unit, or $8,750,000 in the aggregate. The deferred fee will become payable
to the underwriters from the amounts held in the trust account solely in the event that we complete our initial business combination,
subject to the terms of the underwriting agreement.

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ITEM 6. SELECTED FINANCIAL DATA
Item 6.
Selected Financial Data
As
a “smaller reporting company,” we are not required to provide the information called for by this Item.

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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
in this Annual Report on Form 10-K to “we,” “us,” “our” or the “Company” refer
to Empower Ltd. References to our “management” or our “management team” refer to our officers and directors,
and references to the “sponsor” refer to Empower Sponsor Holdings LLC. The following discussion and analysis of the
Company’s financial condition and results of operations should be read in conjunction with our 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 “Special Note Regarding Forward-Looking Statements,” “Item 1A.
Risk Factors” and elsewhere in this Annual Report on Form 10-K.
Overview
We
are a blank check company incorporated in the Cayman Islands on August 19, 2020 formed for the purpose of effecting our initial
business combination We intend to effectuate our initial business combination using cash derived from the proceeds of the Initial
Public Offering and the sale of the private placement warrants, our shares, debt or a combination of cash, shares and debt.
We
expect to continue to incur significant costs in the pursuit of our acquisition plans. We cannot assure you that our plans to
complete our initial business combination will be successful.
Results
of Operations
We
have neither engaged in any operations nor generated any operating revenues to date. Our only activities from inception through
December 31, 2020 were organizational activities and those necessary to prepare for the Initial Public Offering, described below
and looking for a business combination. We do not expect to generate any operating revenues until after the completion of our
initial business combination. We expect to generate non-operating income in the form of interest income on marketable securities
held after the Initial Public Offering. We expect that we will incur increased expenses as a result of being a public company
(for legal, financial reporting, accounting and auditing compliance), as well as for due diligence expenses in connection with
searching for, and completing, our initial business combination.
For
the period from August 19, 2020 (inception) through December 31, 2020, we had a net loss of $221,009, which consisted of formation
and operating costs of $273,915, offset by interest earned on marketable securities held in the trust account of $49,118 and an
unrealized gain on marketable securities held in the trust account of $3,788.
Liquidity
and Capital Resources
On October 9, 2020, we consummated the Initial Public Offering of 25,000,000 units, at a price of $10.00 per unit, generating gross proceeds of $250,000,000. After deducting underwriting fees of $5,000,000, we received net proceeds of $245,000,000. Simultaneously with the closing of the Initial Public Offering, we consummated the sale of 4,666,667 private placement warrants to the sponsor at a price of $1.50 per private placement warrant generating gross proceeds of $7,000,000. We incurred $465,163 of other offering costs, resulting in net cash provided by financing activities of $251,554,837 for the period from August 19, 2020 (inception) through December 31, 2020. Deferred underwriting costs of $8,750,000 were also incurred in connection with the Initial Public Offering, but are not payable until consummation of our initial business combination.
For the period from August 19, 2020 (inception) through December 31, 2020, cash used in investing activities was $250,000,000. Following the Initial Public Offering, and the sale of the private placement warrants, we invested $250,000,000 in the trust account.
For
the period from August 19, 2020 (inception) through December 31, 2020, cash used in operating activities was $474,208. Net loss
of $221,009 was impacted by formation expenses paid by the sponsor of $5,000, interest earned on marketable securities held in
the trust account of $49,118 and an unrealized gain on marketable securities of $3,788. Changes in operating assets and liabilities
used $205,293 of cash from operating activities.
At
December 31, 2020, we had cash and marketable securities held in the trust account of $250,052,906. 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 from the trust account to pay taxes, if any. To the extent that our share capital 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.
As
of December 31, 2020, we had cash of $1,080,629 held outside of the trust account. We intend to use the funds held outside the
trust account 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 our initial
business combination.
In
order to fund working capital deficiencies or finance transaction costs in connection with our initial business combination, our
sponsor or an affiliate of our sponsor or certain of our officers and directors 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. 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 for
such repayment. Up to $2,000,000 of such loans may be convertible into warrants, at a price of $1.50 per warrant, at the option
of the lender. The warrants would be identical to the private placement warrants.
We
do not believe we will need to raise additional funds in order to meet the expenditures required for operating our business for
at least the next 12 months. However, if our estimate of the costs of identifying a target business, undertaking in-depth due
diligence and negotiating our 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 initial business combination.
Off-Balance
Sheet Financing Arrangements
We
have no obligations, assets or liabilities, which would be considered off-balance sheet arrangements as of December 31, 2020.
We do not participate in transactions that create relationships with unconsolidated entities or financial partnerships, often
referred to as variable interest entities, which would have been established for the purpose of facilitating off-balance sheet
arrangements. We have not entered into any off-balance sheet financing arrangements, established any special purpose entities,
guaranteed any debt or commitments of other entities, or purchased any non-financial assets.
Contractual
Obligations
We
do not have any long-term debt, capital lease obligations, operating lease obligations or long-term liabilities, other than as
described below.
The
underwriter is entitled to a deferred fee of $0.35 per unit, or $8,750,000 in the aggregate. The deferred fee will become payable
to the underwriters from the amounts held in the trust account solely in the event that we complete our initial business combination,
subject to the terms of the underwriting agreement.
We
entered into a forward purchase agreement to which Empower Funding LLC (“Empower Funding”), has received commitments
from one or more funds affiliated with MidOcean, and is an affiliate of the sponsor, will purchase an aggregate of up to 5,000,000
forward purchase units, consisting of one Class A ordinary share and one-third of one warrant to purchase one Class A ordinary
share for $10.00 per unit, or up to $50,000,000 in the aggregate, in a private placement to close substantially concurrently with
the closing of our initial business combination, subject to approval at such time by the MidOcean investment committee. The allocation
of the forward purchase securities among the ultimate MidOcean funds that will be funding the forward purchase will be determined
by MidOcean, in its sole discretion, at the time of our initial business combination. If the sale of the forward purchase units
fails to close, for any reason, the Company may lack sufficient funds to consummate our initial business combination. The forward
purchase shares and forward purchase warrants will be identical to the Class A ordinary shares included in the units sold in the
Initial Public Offering, except that they will be subject to certain registration rights.
Critical
Accounting Policies
The
preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and income and expenses
during the periods reported. Actual results could materially differ from those estimates. We have identified the following critical
accounting policies:
Class
A Ordinary Shares Subject to Redemption
We
account for our Class A ordinary shares subject to possible redemption in accordance with the guidance in Accounting Standards
Codification (“ASC”) Topic 480 “Distinguishing Liabilities from Equity.” Class A ordinary shares subject
to mandatory redemption are classified as a liability instrument and are measured at fair value. Conditionally redeemable ordinary
shares (including ordinary shares that feature redemption rights that are either within the control of the holder or subject to
redemption upon the occurrence of uncertain events not solely within our control) are classified as temporary equity. At all other
times, ordinary shares are classified as shareholders’ equity. Our Class A ordinary shares feature certain redemption rights
that are considered to be outside of our control and subject to occurrence of uncertain future events. Accordingly, Class A ordinary
shares subject to possible redemption are presented at redemption value as temporary equity, outside of the shareholders’
equity section of our balance sheet.
Net
Loss Per Ordinary Share
We
apply the two-class method in calculating earnings per share. Ordinary shares subject to possible redemption, which are not currently
redeemable and are not redeemable at fair value, have been excluded from the calculation of basic net loss per ordinary share
since such shares, if redeemed, only participate in their pro rata share of the trust account earnings. Our net loss is adjusted
for the portion of income that is attributable to ordinary shares subject to possible redemption, as these shares only participate
in the earnings of the trust account and not our income or losses.
Recent
Accounting Standards
Management
does not believe that any other recently issued, but not yet effective, accounting standards, if currently adopted, would have
a material effect on our financial statements.

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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Item 7A.
Quantitative and Qualitative Disclosures About Market Risk.
Following
the consummation of our Initial Public Offering, the net proceeds of our Initial Public Offering, including amounts in the trust
account, have been invested in U.S. government treasury bills, notes or bonds with a maturity of 185 days or less or in certain
money market funds that invest solely in US treasuries. Due to the short-term nature of these investments, we believe there will
be no associated material exposure to interest rate 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 9A. CONTROLS AND PROCEDURES
Item 9A.
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 our reports filed or submitted under the Exchange Act is accumulated
and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate 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, 2020.
Based upon their evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of December 31, 2020,
our disclosure controls and procedures (as defined in Rules 13a-15 (e) and 15d-15 (e) under the Exchange Act) were effective.
Management’s
Report on Internal Controls 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 independent registered public accounting firm due to a transition period established
by rules of the SEC for newly public companies.
Changes
in Internal Control over Financial Reporting
There
were no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) of
the Exchange Act) during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially
affect, our internal control over financial reporting.

---

ITEM 9B. OTHER INFORMATION
Item 9B.
Other Information
None.
PART
III

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ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
Item 10.
Directors, Executive Officers and Corporate Governance
Directors
and Executive Officers
Our
directors and offices are as follows:
Name
Age
Title
Matthew
Rubel
Executive
Chairman and Chief Executive Officer
Graham
Clempson
President
and Director
Andrew
Spring
Chief
Financial Officer
Krishnan
(Kandy) Anand
Director
Gina
Bianchini
Director
Jeffrey
Jones
Director
Beth
Kaplan
Director
Matthew
Rubel. Mr. Rubel has served as our Chief Executive Officer and Executive Chairman of Board since
August 2020. Mr. Rubel has served as the Chairman of MidOcean’s Executive Board since joining the firm in 2018, where
he leads the Executive Board’s efforts to provide industry insights to MidOcean’s investment teams and portfolio companies.
Mr. Rubel
is a renowned retail and brand Chief Executive Officer, having led many successful global brands and businesses. Most recently,
Mr. Rubel served as Chief Executive Officer, President, and Board Member of Varsity Brands, a leader in sport, spirit
and achievement products, which he strategically focused and integrated. Previously, Mr. Rubel served as Chairman, Chief
Executive Officer and President of Collective Brands, Inc., which included Payless ShoeSource, Sperry Topsider, Saucony, Stride
Rite and Keds. Prior to Collective Brands, Mr. Rubel was Chairman, Chief Executive Officer and President of Cole Haan LLC,
from 1999 to 2005. Prior to Cole Haan, he served in senior management roles at J. Crew Group, Revlon and Murjani International
Ltd.
Mr. Rubel
has been a director of numerous multinational retail and consumer branded companies. He currently serves as Executive Chairman
of MidOcean’s portfolio company KidKraft, and also on the Boards of TreeHouse Foods, The Joint Chiropractic and MidOcean’s
portfolio company Image Skincare. He previously was an Independent Director at Hudson’s Bay Company (“HBC”),
where he served on the Special Committee for HBC’s going private transaction. Mr. Rubel also served as an Independent
Director of HSNi, the holding company of HSN and Cornerstone Brands. In addition, Mr. Rubel served as an Independent Director
at SUPERVALU, ELF Cosmetics and Furniture Brands and as an advisor to early stage technology and retail companies, including Celect,
Inc., Retail Next, First Insight and AfterPay.
Mr. Rubel
has also worked closely as a Senior Advisor with TPG Capital, TPG Growth and Roark Capital. He was a presidential appointee to
the White House Advisory Committee for Trade Policy Negotiation from 2010 to 2018. Mr. Rubel holds a Bachelor of Science
from Ohio University and an MBA from the University of Miami.
Graham
Clempson. Mr. Clempson has served as our President and a Director on our Board since August 2020.
He is Vice Chairman of MidOcean, which he co-founded in 2003, and serves on MidOcean’s Executive Board with a focus
on the firm’s Investment Strategy, Portfolio Management and Business Development functions based in New York. Prior to his
current position, Mr. Clempson was MidOcean’s European Managing Partner, based in London, from the firm’s inception
until 2012.
In
addition to his role at MidOcean, Mr. Clempson serves as Managing Partner at Quartic Capital LLP, which he founded in 2012.
Quartic Capital LLP invests in and manages complex portfolios of secondary private equity assets, in partnership with Coller Capital,
a leading global secondary private equity investment firm.
Prior
to co-founding MidOcean, Mr. Clempson held various leadership positions in the European finance and private equity sectors,
including CEO of Morgan Grenfell Private Equity, European Managing Partner of Deutsche Bank Capital Partners, and Co-Head of
European Investment Banking at Deutsche Bank, with particular responsibility for the bank’s Financial Sponsor Coverage,
Leveraged Finance and High Yield departments. Mr. Clempson began his career at Bankers Trust Company in 1983.
Mr. Clempson
currently serves on the board of directors of Display Data Plc, Bandier Holdings LLC, Allied Film Makers Ltd and Thorough Events
Holdings Ltd, as well as a member of the Board of Governors of the Parsons School of Design in New York. Mr. Clempson’s
previous board roles have included Piaggio & C. SpA, Laurel Pub Co Ltd and United Biscuits Plc. Mr. Clempson received
his M.A. in Law from Oxford University.
Andrew
Spring. Mr. Spring has served as our Chief Financial Officer since August 2020. Mr. Spring
is currently a Managing Director and the Chief Financial Officer of MidOcean, having joined the firm at its inception, over 17
years ago. Mr. Spring is a Certified Public Accountant and is admitted to the New York Bar. He currently is a member of the
Board of Directors of Literacy Inc. He also serves as a Director for MidOcean Absolute Return Credit Master Fund, Ltd., MidOcean
Absolute Return Credit Offshore Fund Ltd., MidOcean Credit Opportunity Offshore Fund Ltd. and MidOcean Select Floating Rate Fund
Offshore Ltd. Prior to MidOcean, Mr. Spring served as a Director at Deutsche Bank Capital Partners. Mr. Spring’s
additional experience includes working as Counsel at Citigroup Investments, Inc., Associate Counsel at World Color Press, Inc.,
an associate at White & Case LLP and as a senior auditor at Deloitte & Touche LLP. Mr. Spring holds a Bachelor
of Science degree from the Wharton School of the University of Pennsylvania, as well as his J.D. from Cornell Law School.
Krishnan
(Kandy) Anand. Mr. Anand has served as a Director on our Board since October 2020. Mr. Anand brings
more than 30 years of senior leadership and boardroom experience within the consumer sector, including his time as Chief Growth
Officer at Molson Coors Beverage Company (formerly Molson Coors Brewing Company) from 2016 to 2019. Prior to that, he served as
the CEO of their International business for nearly seven years. Before joining Molson Coors, Mr. Anand held multiple leadership
roles within Unilever as well as The Coca-Cola Company, including President of their Philippines business. Mr. Anand
currently serves on the Board of Directors of Folium Bio Sciences and Wingstop Inc., where he sits on the Audit and Compensation
Committees. He previously served on the Board of Popeyes Louisiana Kitchen Limited, where he served as Chairman of the Compensation
Committee, as well as a member of the Nominating and Governance Committees. Mr. Anand also sat on the company’s Board
Transaction Committee during its sale to Restaurant Brands International. Mr. Anand holds a B. Tech degree in Mechanical
Engineering from IIT Delhi and an MBA from IIM Ahmedabad.
Gina
Bianchini. Ms. Bianchini has served as a Director on our Board since October 2020. Ms. Bianchini brings
in-depth knowledge and experience in building and operating companies in the digital media and technology sector. She currently
serves as the Founder and Chief Executive Officer of Mighty Networks, a SaaS platform that helps businesses sell digital memberships,
experiences, relationships, and expertise to their members via community, content, online courses, and subscription commerce.
Before Mighty Networks, Ms. Bianchini co-founded Ning, a pioneering global platform for creating niche social networks. Under
her leadership, Ning grew to approximately 100 million people in 300,000 active social networks across subcultures,
professional networks, entertainment, politics, and education, before being acquired in 2010. In addition to Mighty Networks,
Ms. Bianchini serves as a member of the Board of Directors for TEGNA, a broadcast and digital media company. She previously served
as a member of the Board of Directors for Scripps Networks Interactive Inc., from 2012 until they were acquired in 2018 by Discovery
Communications. Ms. Bianchini holds a B.A. degree in Political Science from Stanford University and an MBA from Stanford Graduate
School of Business.
Jeffrey
Jones. Mr. Jones has served as a Director on our Board since October 2020. Mr. Jones brings extensive
corporate leadership and boardroom experience, including his most recent management role serving as Chief Financial Officer of
Vail Resorts, Inc., where he also served as President of Lodging, Retail and Real Estate and held a seat on the Board of Directors.
During his time at Vail Resorts, Inc., from 2003 until his retirement in 2012, Mr. Jones held overall responsibility for
the finance, accounting, treasury, investor relations and strategic development functions as well as operations oversight of the
lodging, retail, and real estate segments of the business. He remains actively involved in the corporate community, currently
serving as a Director on the Boards of Summit Hotel Properties, Noodles & Company, Hershey Entertainment & Resorts and
ClubCorp. Mr. Jones is also a Director of the Advisory Board of U.S. Bank and a Director of the Leeds School of Business,
University of Colorado Boulder. Mr. Jones holds a Bachelor of Arts degree from Mercyhurst College.
Beth
Kaplan. Ms. Kaplan has served as a Director on our Board since October 2020. Ms. Kaplan brings extensive
experience in operating, advising and investing in the consumer sector, including her former role as President and Chief Operating
Officer at Rent the Runway, where she continues to serve as a member of the Board of Directors. Ms. Kaplan is also currently the
managing member of Axcel Partners, LLC, investing in consumer-facing early stage and growth companies. Prior to her time
at Rent the Runway, she served as President, Chief Merchandising and Marketing Officer, and Director at General Nutrition Centers
Inc. (“GNC”), during which she played an integral role in the company’s 2011 IPO. Before joining GNC, Ms. Kaplan
held numerous leadership positions within Bath & Body Works, Rite Aid Drugstores and Procter & Gamble. In addition to
her current role on the Board of Rent the Runway, Ms. Kaplan also serves on the Boards of the Meredith Corporation, Howard Hughes
Corporation and Crocs, as well as a director and advisor of Care/of and Leesa Sleep. She also does advisory work for numerous
growth stage companies. Ms. Kaplan holds a Bachelor of Science degree and an MBA from the Wharton School of the University of
Pennsylvania.
Number
and Terms of Office of Officer and Directors
Our
board of directors is divided into three classes, with only one class of directors being appointed in each year, and with each
class (except for those directors appointed prior to our first annual general meeting) serving a three-year term. In accordance
with the NYSE 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 the NYSE. The term of office of the first class of directors, consisting of Mr.
Anand and Ms. Bianchini, will expire at our first annual general meeting. The term of office of the second class of directors,
consisting of Mr. Jones and Ms. Kaplan, will expire at our second annual general meeting. The term of office of the third class
of directors, consisting of Mr. Rubel and Mr. Clempson, will expire at our third annual general meeting.
Prior
to the completion of an initial business combination, any vacancy on the board of directors may be filled by a nominee chosen
by holders of a majority of our founder shares. In addition, prior to the completion of an initial business combination, holders
of a majority of our founder shares may remove a member of the board of directors for any reason.
Pursuant
to an agreement entered into with our sponsor, our sponsor, upon and following consummation of an initial business combination,
will be entitled to nominate three individuals for appointment to our board of directors, as long as our sponsor holds any securities
covered by the registration and shareholder rights agreement.
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 one or more chairman of the board, chief executive officer, president, chief financial
officer, vice presidents, secretary, treasurer and such other offices as may be determined by the board of directors.
Committees
of the Board of Directors
Our
board of directors has two standing committees: an audit committee and a compensation, nominating and corporate governance committee.
Subject to phase-in rules and a limited exception, the rules of the NYSE and Rule 10A-3 of the Exchange Act require
that the audit committee of a listed company be comprised solely of independent directors. Subject to phase-in rules and
a limited exception, the rules of the NYSE require that the compensation, nominating and corporate governance committee of a listed
company be comprised solely of independent directors.
Each
committee is governed by a charter that complies with the rules of the NYSE. Each committee charter is available on our website
at www.empowermidocean.com.
Audit
Committee
Jeffrey
Jones, Krishnan (Kandy) Anand and Gina Bianchini serve as members of our audit committee. Under the NYSE listing standards and
applicable SEC rules, all the directors on the audit committee must be independent. Our board of directors has determined that
each of Mr. Jones, Mr. Anand and Ms. Bianchini are independent under the NYSE listing standards and SEC rules applicable
to audit committee members. Mr. Jones serves as the chairman of the audit committee. Each member of the audit committee is
financially literate and our board of directors has determined that Mr. Jones qualifies as an “audit committee
financial expert” as defined in applicable SEC rules.
The
audit committee is responsible for:
● meeting
with our independent registered public accounting firm regarding, among other issues, audits, and adequacy of our accounting and
control systems;
● monitoring
the independence of the independent registered public accounting firm;
● establishing, supervising and reviewing policies for audit partner rotation in compliance with applicable laws and regulations;
● inquiring
and discussing with management our compliance with applicable laws and regulations;
● pre-approving all
audit services and permitted non-audit services to be performed by our independent registered public accounting firm, including
the fees and terms of the services to be performed;
● the appointment, compensation, retention, replacement and oversight of the work of any independent registered public accounting firm (including resolution of disagreements between management and the independent auditor regarding financial reporting) for the purpose of preparing or issuing an audit report or related work;
● establishing
procedures for the receipt, retention and treatment of complaints received by us regarding accounting, internal accounting controls
or reports which raise material issues regarding our financial statements or accounting policies;
● monitoring
compliance on a quarterly basis with the terms of this offering and, if any noncompliance is identified, immediately taking all
action necessary to rectify such noncompliance or otherwise causing compliance with the terms of this offering; and
● reviewing
and approving all payments made to our existing shareholders, executive officers or directors and their respective affiliates.
Any payments made to members of our audit committee will be reviewed and approved by our board of directors, with the interested
director or directors abstaining from such review and approval.
Compensation,
Nominating and Corporate Governance Committee
Beth
Kaplan, Krishnan (Kandy) Anand and Gina Bianchini serve as members of the compensation, nominating and corporate governance committee.
Under the NYSE listing standards and applicable SEC rules, all the directors on this committee must be independent. Our board
of directors has determined that each of Ms. Kaplan, Mr. Anand and Ms. Bianchini are independent under the NYSE listing standards
and SEC rules applicable to compensation committee members. Ms. Kaplan serves as chair of the committee.
The compensation, nominating and corporate governance committee is responsible for overseeing the selection of persons to be nominated to serve on our board of directors. The compensation, nominating and corporate governance committee is also responsible for overseeing our compensation policies and determinations, as further described below. We have adopted a committee charter, which details the principal functions of the 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 approving the compensation of all of our other Section 16 executive 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 executive 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, legal counsel or other adviser and will be 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 the NYSE and the SEC.
Compensation
Committee Interlocks and Insider Participation
None
of our executive officers currently serves, and in the past year has not served, as a member of the compensation committee of
any entity that has one or more executive officers serving on our board of directors.
Code
of Ethics
We
have adopted a Code of Ethics applicable to our directors, officers and employees. Our Code of Ethics is posted on our website
located at www.empowermidocean.com. If we make any amendments to our Code of Ethics other than technical, administrative
or other non-substantive amendments, or grant any waiver, including any implicit waiver, from a provision of the Code of Ethics
applicable to our principal executive officer, principal financial officer principal accounting officer or controller or persons
performing similar functions requiring disclosure under applicable SEC or NYSE rules, we will disclose the nature of such amendment
or waiver on our website.
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;
● directors
should 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 of that director.
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.
Certain
of our Founders, officers and directors presently have, and any of them in the future may have additional, fiduciary and contractual
duties to other entities. As a result, if any of our Founders, officers or directors becomes aware of a business combination opportunity
which is suitable for an entity to which he or she has then-current fiduciary or contractual obligations, then, subject to
their fiduciary duties under Cayman Islands law, he or she will need to honor such fiduciary or contractual obligations to present
such business combination opportunity to such entity, before we can pursue such opportunity. If these other entities decide to
pursue any such opportunity, we may be precluded from pursuing the same. However, we do not expect these duties to materially
affect our ability to complete our initial business combination. Our amended and restated memorandum and articles of association
provide that we renounce our interest in any business combination opportunity offered to any Founder, director or officer unless
such opportunity is expressly offered to such person solely in his or her capacity as a director or officer of the Company and
it is an opportunity that we are able to complete on a reasonable basis.
Below
is a table summarizing the entities to which our executive officers and directors currently have fiduciary duties, contractual
obligations or other material management relationships:
Individual Entity Type of Business Affiliation
Matthew Rubel MidOcean Partners(1) Private Equity Chairman of Executive Board
KidKraft Manufacturing Executive Chairman
TreeHouse Foods Food Processing Director
The Joint Chiropractic Chiropractic Care Director
Image Skincare Skincare Director
TOMS Shoes Footwear Director
Graham Clempson MidOcean Partners(1) Private Equity Vice Chairman and Co-founder
Bandier Holdings LLC Sportswear Director
Display Data PLC Information Services Director
Thorough Events Holdings Ltd Events Services Director
Allied Film Makers Ltd Production Director
Andrew Spring MidOcean Partners(1) Private Equity Managing Director and Chief Financial Officer
Krishnan (Kandy) Anand Folium Bio Sciences Wholesaler Director
Wingstop Inc. Restaurants Director
Gina Bianchini Mighty Networks Software Chief Executive Officer
TEGNA Broadcasting Director
Jeffrey Jones Noodles & Company Restaurants Chairman of the Board
Hershey Entertainment & Resorts Entertainment Lead Independent Director
Summit Hotel Properties, Inc. REIT Lead Independent Director
ClubCorp Golf and Membership Clubs Director
Beth Kaplan Axcel Partners, LLC Private Equity Managing Member
Meredith Corporation Media Director
Howard Hughes Corporation Real Estate Director
Crocs Consumer Shoe Brand Director
Rent the Runway Apparel Rental Services Director and Advisor
Care/of Health Technology Director and Advisor
Leesa Sleep Mattress Retailer Director and Advisor
(1) Includes
MidOcean Partners and certain of its funds, affiliates, and other related entities, including certain portfolio companies in which
the funds and other related entities invest.
Potential
investors should also be aware of the following other potential conflicts of interest:
● Our
executive officers and directors are not 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 executive officers is engaged in several other business endeavors for which he may be entitled to substantial compensation,
and our executive officers are not obligated to contribute any specific number of hours per week to our affairs.
● Our
sponsor subscribed for founder shares prior to the date of our Initial Public Offering and purchased private placement warrants
at the time of the Initial Public Offering.
● We
entered into a forward purchase agreement with Empower Funding, which is an affiliate of our sponsor, at the time of the Initial
Public Offering.
● Our
sponsor and each member of our management team have entered into an agreement with us, pursuant to which they have agreed to waive
their redemption rights with respect to any founder shares and public shares held by them in connection with (i) the completion
of our initial business combination, and (ii) a shareholder vote to approve an amendment to our amended and restated memorandum
and articles of association (A) that would modify the substance or timing of our obligation to provide holders of our Class A
ordinary shares the right to have their shares redeemed 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 24 months from the closing of the Initial Public
Offering or during any extension period or (B) with respect to any other provision relating to the rights of holders of our Class
A ordinary shares. Additionally, our sponsor has agreed to waive its rights to liquidating distributions from the trust account
with respect to its founder shares if we fail to complete our initial business combination within the prescribed time frame. If
we do not complete our initial business combination within the prescribed time frame, the private placement warrants will expire
worthless. Except as described herein, our sponsor and our directors and executive officers have agreed not to transfer, assign
or sell any of their founder shares until the earliest of (A) one year after the completion of our initial business combination
and (B) subsequent to our initial business combination, (x) if the closing price of our Class A ordinary shares equals or exceeds
$12.00 per share (as adjusted for share subdivisions, share capitalizations, reorganizations, recapitalizations and the like)
for at least 20 trading days within any 30-trading day period commencing at least 150 days after our initial business combination,
or (y) the date on which we complete a liquidation, merger, share exchange 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. Except as described
herein, the private placement warrants will not be transferable until 30 days following the completion of our initial business
combination. Because each of our executive officers and director nominees will own ordinary shares or warrants directly or indirectly,
they 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
officers and directors may have a conflict of interest with respect to evaluating a particular business combination if the retention
or resignation of any such officers and directors is included by a target business as a condition to any agreement with respect
to our initial business combination. In addition, our Founders, sponsor, officers and directors may sponsor, form or participate
in other blank check companies similar to ours during the period in which we are seeking an initial business combination. Any
such companies may present additional conflicts of interest in pursuing an acquisition target, particularly in the event there
is overlap among investment mandates.
We
are not prohibited from pursuing an initial business combination with a company that is affiliated with our sponsor, Founders,
officers or directors. In the event we seek to complete our initial business combination with a company that is affiliated with
our sponsor or any of our Founders, officers or directors, we, or a committee of independent directors, will obtain an opinion
from an independent investment banking firm or another independent entity that commonly renders valuation opinions that such initial
business combination is fair to our company from a financial point of view. We are not required to obtain such an opinion in any
other context.
Furthermore,
in no event will our sponsor or any of our existing officers, or their respective affiliates, be paid by us any finder’s
fee, consulting fee or other compensation prior to, or for any services they render in order to effectuate, the completion of
our initial business combination. We currently expect our sponsor to provide us with office space, administrative and support
services at no cost, but we may incur costs for office space and administrative and support services in the future.
We
cannot assure you that any of the above mentioned conflicts will be resolved in our favor.
If
we seek shareholder approval, we will complete our initial business combination only if we obtain the approval of an ordinary
resolution under Cayman Islands law, being the affirmative vote of a majority of the ordinary shares represented in person or
by proxy and entitled to vote thereon and who vote at a general meeting. In such case, our sponsor and each member of our management
team have agreed to vote their founder shares and public shares in favor of our initial business combination.
Limitation
on Liability and Indemnification of Officers and Directors
Cayman
Islands law does not limit the extent to which a company’s memorandum and articles of association may provide for indemnification
of officers and directors, except to the extent any such provision may be held by the Cayman Islands courts to be contrary to
public policy, such as to provide indemnification against willful default, willful neglect, civil fraud or the consequences of
committing a crime. Our amended and restated memorandum and articles of association provide for indemnification of our officers
and directors to the maximum extent permitted by law, including for any liability incurred in their capacities as such, except
through their own actual fraud, willful default or willful neglect. We have entered into agreements with our directors and officers
to provide contractual indemnification in addition to the indemnification provided for in our amended and restated memorandum
and articles of association. We have purchased a policy of directors’ and officers’ liability insurance that insures
our officers and directors against the cost of defense, settlement or payment of a judgment in some circumstances and insures
us against our obligations to indemnify our officers and directors.
Our
officers and directors have agreed to waive any right, title, interest or claim of any kind in or to any monies in the trust account,
and have agreed to waive any right, title, interest or claim of any kind they may have in the future as a result of, or arising
out of, any services provided to us and will not seek recourse against the trust account for any reason whatsoever (except to
the extent they are entitled to funds from the trust account due to their ownership of public shares). Accordingly, any indemnification
provided will only be able to be satisfied by us if (i) we have sufficient funds outside of the trust account or (ii) we consummate
an initial business combination.
Our
indemnification obligations may discourage shareholders from bringing a lawsuit against our officers or directors for breach of
their fiduciary duty. These provisions also may have the effect of reducing the likelihood of derivative litigation against our
officers and directors, even though such an action, if successful, might otherwise benefit us and our shareholders. Furthermore,
a shareholder’s investment may be adversely affected to the extent we pay the costs of settlement and damage awards against
our officers and directors pursuant to these indemnification provisions.
We
believe that these provisions, the insurance and the indemnity agreements are necessary to attract and retain talented and experienced
officers and directors.

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ITEM 11. EXECUTIVE COMPENSATION
Item 11.
Executive Compensation
None
of our executive officers or directors have received any cash compensation for services rendered to us. Our sponsor, executive
officers and directors, or 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, executive
officers or directors, or their affiliates. Any such payments prior to an initial business combination will be made using funds
held outside the trust account. Other than quarterly audit committee review of such reimbursements, we do not expect to have any
additional controls in place governing our reimbursement payments to our directors and executive officers for their out-of-pocket
expenses incurred in connection with our activities on our behalf in connection with identifying and consummating an initial business
combination. Other than these payments and reimbursements, no compensation of any kind, including finder’s and consulting
fees, will be paid by the Company to our sponsor or officers, or their respective affiliates, prior to completion of our initial
business combination.
After
the completion of our initial business combination, directors or members of our management team who remain with us may be paid
consulting or management fees from the combined company. All of these fees will be fully disclosed to shareholders, to the extent
then known, in the proxy solicitation materials or tender offer materials furnished to our shareholders in connection with a proposed
business combination. We have not established any limit on the amount of such fees that may be paid by the combined company to
our directors or members of management. It is unlikely the amount of such compensation will be known at the time of the proposed
business combination, 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 executive officers will be determined, or recommended to the board
of directors for determination, either by a compensation committee constituted solely by independent directors or by a majority
of the independent directors on our board of directors.
We
do not intend to take any action to ensure that members of our management team maintain their positions with us after the consummation
of our initial business combination, although it is possible that some or all of our executive officers and directors may negotiate
employment or consulting arrangements to remain with us after our initial business combination. The existence or terms of any
such employment or consulting arrangements to retain their positions with us may influence our management’s motivation in
identifying or selecting a target business but we do not believe that the ability of our management to remain with us after the
consummation of our initial business combination will be a determining factor in our decision to proceed with any potential business
combination. We are not party to any agreements with our executive officers and directors that provide for benefits upon termination
of employment.

---

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 regarding the beneficial ownership of our Class A ordinary shares and Class B ordinary
shares as of March 1, 2021 by:
● each
person known by us to be the beneficial owner of more than 5% of our issued and 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
of our ordinary shares beneficially owned by them. The following table does not reflect record or beneficial ownership of the
private placement warrants as these warrants are not exercisable within 60 days of the date of this prospectus.
Class B Ordinary Shares (2) Class A Ordinary Shares
Name and Address of Beneficial Owner(1) Number
of Shares
Beneficially Owned
Approximate
Percentage of Class
Number
of Shares
Beneficially Owned
Approximate
Percentage of Class
Approximate Percentage of Voting Control
Sculptor
Capital LP (3) - - 2,287,075 9.1 % 7.3 %
Glazer Capital, LLC (4) - - 2,253,641 9.0 % 7.2 %
Periscope Capital Inc. (5) - - 1,449,100 5.8 % 4.6 %
Empower Sponsor Holdings LLC 6,250,000 (6) 100.0 % - - 20.0 %
Matthew Rubel - (7) - - - -
Graham Clempson - (7) - - - -
Andrew Spring - (7) - - - -
Krishnan (Kandy) Anand - (7) - - - -
Gina Bianchini - (7) - - - -
Jeffrey Jones - (7) - - - -
Beth Kaplan - (7) - - - -
All officers and directors as a group (7 individuals) - (7) -
(1) Unless
otherwise noted, the business address of each of our shareholders is 245 Park Avenue, 38th Floor, New York, NY 10167.
(2) Interests
shown consist solely of founder shares, classified as Class B ordinary shares. Such shares will automatically convert into Class
A ordinary shares at the time of our initial business combination or earlier at the option of the holders thereof Excludes Class
A ordinary shares issuable pursuant to the forward purchase agreement, as such shares will only be issued, if at all, at the time
of our initial business combination.
(3) Based
on the Schedule 13G/A filed with the SEC on February 5, 2021 by Sculptor Capital LP. According to its Schedule 13G/A, Sculptor
Capital reported having sole voting power over no shares, shared voting power over 2,287,075 Class A ordinary shares, sole dispositive
power over no shares and shared dispositive power over 2,287,075 Class A ordinary shares. The Schedule 13G/A contained information
as of December 31, 2020. The address of Sculptor Capital is 9 West 57th Street, New York, New York 10019.
(4) Based
on the Schedule 13G/A filed with the SEC on February 16, 2021 by Glazer Capital, LLC. According to its Schedule 13G/A, Glazer
Capital reported having sole voting power over no shares, shared voting power over 2,253,641 Class A ordinary shares, sole dispositive
power over no shares and shared dispositive power over 2,253,641 Class A ordinary shares. The Schedule 13G/A contained information
as of December 31, 2020. The address of Glazer Capital is 250 West 55th Street, Suite 30A, New York, New York 10019.
(5) Based
on the Schedule 13G filed with the SEC on February 16, 2021 by Periscope Capital Inc. According to its Schedule 13G, Periscope
Capital reported having sole voting power over no shares, shared voting power over 1,449,100 Class A ordinary shares, sole dispositive
power over no shares and shared dispositive power over 1,449,100 Class A ordinary shares. The Schedule 13G contained information
as of December 31, 2020. The address of Periscope Capital is 333 Bay Street, Suite 1240, Toronto, Ontario, Canada M5H 2R2.
(6) Our
sponsor, Empower Sponsor Holdings LLC, is the record holder of the shares reported. The managing member of our sponsor is MidOcean
Associates V, L.P. (“Associates”). The general partner of Associates is Ultramar Capital, Ltd. (“Ultramar”),
which is controlled by James Edward Virtue (“Virtue”). Accordingly, each of Associates, Ultramar and Virtue may be
deemed to have beneficial ownership of the shares held by our sponsor. Each of Associates, Ultramar and Virtue disclaims beneficial
ownership of any shares except to the extent of their pecuniary interest therein.
(7) Does
not include any shares indirectly owned by this individual as a result of the individual’s membership interest in our sponsor.
Each of these individuals disclaims beneficial ownership of any shares except to the extent of their pecuniary interest therein.
Our
sponsor beneficially owns 20% of the issued and outstanding ordinary shares and has the right to appoint all of our directors
prior to our initial business combination. Holders of our public shares do not have the right to appoint any directors to our
board of directors prior to our initial business combination. Because of this ownership block, our sponsor 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 including our initial business combination.
Our
sponsor has agreed (a) to vote any founder shares and public shares held by it in favor of any proposed business combination and
(b) not to redeem any founder shares or public shares held by it in connection with a shareholder vote to approve a proposed initial
business combination.
We
have entered into a forward purchase agreement pursuant to which Empower Funding has agreed to subscribe for an aggregate of up
to 5,000,000 forward purchase units, consisting of one Class A ordinary share and one-third of one warrant to purchase one
Class A ordinary share for $10.00 per unit, or up to $50,000,000 in the aggregate, in a private placement to close substantially
concurrently with the closing of our initial business combination, subject to approval at such time by the MidOcean investment
committee.
The
forward purchase agreement also provides that the forward purchase investors are entitled to registration rights with respect
to (A) the forward purchase shares, (B) the Class A ordinary shares issuable upon exercise of the forward purchase warrants and
(C) any other Class A ordinary shares acquired by the forward purchase investors, including any acquisitions after we complete
our initial business combination.
Our
sponsor, Empower Funding and our officers and directors are deemed to be our “promoters” as such term is
defined under the federal securities laws.
Transfers
of Founder Shares and Private Placement Warrants
The
founder shares and private placement warrants and any Class A ordinary shares issued upon conversion or exercise thereof are each
subject to transfer restrictions pursuant to lock-up provisions in the agreement entered into by our sponsor and management team.
Our sponsor and our directors and executive officers have agreed not to transfer, assign or sell any of their founder shares until
the earliest of (a) one year after the completion of our initial business combination and (b) subsequent to our initial business
combination, (x) if the closing price of our Class A ordinary shares equals or exceeds $12.00 per share (as adjusted for share
subdivisions, share capitalizations, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading
day period commencing at least 150 days after our initial business combination or (y) the date on which we complete a liquidation,
merger, share exchange or other similar transaction that results in all of our public shareholders having the right to exchange
their Class A ordinary shares for cash, securities or other property. The private placement warrants and the respective Class
A ordinary shares underlying such warrants are not transferable or salable until 30 days after the completion of our initial business
combination. The foregoing restrictions are not applicable to transfers (a) to our officers or directors, any affiliates or family
members of any of our officers or directors, any members of our sponsor, or any affiliates of our sponsor, including to funds
affiliated with MidOcean, and to limited partners of funds affiliated with MidOcean; (b) in the case of an individual, by gift
to a member of one of the individual’s immediate family or to a trust, the beneficiary of which is a member of the individual’s
immediate family, an affiliate of such person or to a charitable organization; (c) in the case of an individual, by virtue of
laws of descent and distribution upon death of the individual; (d) in the case of an individual, pursuant to a qualified domestic
relations order; (e) by private sales or transfers made in connection with the consummation of a business combination at prices
no greater than the price at which the founder shares, private placement warrants or Class A ordinary shares, as applicable, were
originally purchased; (f) by virtue of our sponsor’s organizational documents upon liquidation or dissolution of our sponsor;
(g) to the Company for no value for cancellation in connection with the consummation of our initial business combination; (h)
in the event of our liquidation prior to the completion of our initial business combination; or (i) in the event of our completion
of a liquidation, merger, share exchange or other similar transaction which results in all of our public shareholders having the
right to exchange their Class A ordinary shares for cash, securities or other property subsequent to our completion of our initial
business combination; provided, however, that in the case of clauses (a) through (e) these permitted transferees must enter into
a written agreement agreeing to be bound by these transfer restrictions and the other restrictions contained in the letter agreement.
Equity
Compensation Plans
As
of December 31, 2020, we had no compensation plans (including individual compensation arrangements) under which equity securities
were authorized for issuance.

---

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Item 13.
Certain Relationships and Related Transactions, and Director Independence
Founder
Shares
On
August 21, 2020, our sponsor purchased 7,187,500 founder shares for an aggregate price of $25,000. Our sponsor agreed to forfeit
up to 937,500 founder shares to the extent that the over-allotment option was not exercised in full by the underwriters. The forfeiture
was to be adjusted to the extent that the over-allotment option was not exercised in full by the underwriters so that the founder
shares would represent 20.0% of our issued and outstanding shares after our Initial Public Offering. The underwriters declined
to exercised their 45-day over-allotment option in connection with our Initial Public Offering; thus, the 937,500 founder shares
were forfeited by our sponsor.
Our
sponsor and our officers and directors agreed, subject to limited exceptions, not to transfer, assign or sell any of their founder
shares until the earlier to occur of: (A) one year after the completion of our initial business combination or (B) subsequent
to our initial business combination, (x) if the last reported sale price of the ordinary shares equals or exceeds $12.00 per share
(as adjusted for share splits, share dividends, rights issuances, subdivisions, reorganizations, recapitalizations and the like)
for any 20 trading days within any 30-trading day period commencing at least 150 days after our initial business combination,
or (y) the date on which we complete a liquidation, merger, amalgamation, share exchange, reorganization or other similar transaction
that results in all of our shareholders having the right to exchange their ordinary shares for cash, securities or other property.
Private
Placement Warrants
Simultaneously
with the closing of our Initial Public Offering, we sold 4,666,667 private placement warrants to our sponsor at a price of $1.50
per private placement warrant, generating gross proceeds of $7 million. Each private placement warrant is exercisable for one
ordinary share at a price of $11.50 per share. A portion of the net proceeds from the private placement was added to the proceeds
from our Initial Public Offering held in the trust account. If we do not complete our initial business combination by October
9, 2022, the private placement warrants will expire worthless. The private placement warrants are non-redeemable and exercisable
on a cashless basis so long as they are held by our sponsor or its permitted transferees.
Our
sponsor and our officers and directors agreed, subject to limited exceptions, not to transfer, assign or sell any of their private
placement warrants until 30 days after the completion of our initial business combination.
Related
Party Loans
In
order to finance transaction costs in connection with a business combination, our sponsor or an affiliate of our sponsor, or certain
of our officers and directors may, but are not obligated to, loan us working capital loans. If we complete a business combination,
we would repay the working capital loans out of the proceeds of the trust account released to us. Otherwise, the working capital
loans can be repaid only out of funds held outside the trust account. In the event that a business combination does not close,
we may use a portion of proceeds held outside the trust account to repay the working capital loans but no proceeds held in the
trust account would be used to repay the working capital loans. Except for the foregoing, the terms of such working capital loans,
if any, have not been determined and no written agreements exist with respect to such loans. The working capital loans would either
be repaid upon consummation of a business combination, without interest, or, at the lender’s discretion, up to $2,000,000
of such working capital loans may be convertible into warrants at a price of $1.50 per warrant. The warrants would be identical
to the private placement warrants. To date, we had no borrowings under the working capital loans.
Reimbursement
Our
sponsor, officers and directors, 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 to our sponsor, officers,
directors or our or any of their 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.
Registration
and Shareholder Rights
The
holders of the founder shares, private placement warrants and any warrants that may be issued upon conversion of working capital
loans (and any Class A ordinary shares issuable upon the exercise of the private placement warrants, upon the exercise of warrants
that may be issued upon conversion of working capital loans and upon conversion of the founder shares) are entitled to registration
rights pursuant to a registration and shareholder rights agreement signed on the effective date of the Initial Public Offering.
The holders of these securities are entitled to make up to three demands, excluding short form 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 our initial business combination. However, the registration and shareholder rights agreement
provides that we will not permit any registration statement filed under the Securities Act to become effective until termination
of the applicable lockup period, which occurs (i) in the case of the founder shares, as described in the following paragraph,
and (ii) in the case of the private placement warrants and the respective Class A ordinary shares underlying such warrants, 30
days after the completion of our initial business combination. We will bear the expenses incurred in connection with the filing
of any such registration statements.
Pursuant
to the forward purchase agreement, we will agree that we will use our commercially reasonable efforts to (i) within 30 days after
the closing of the initial business combination, file a registration statement with the SEC for a secondary offering of (A) the
forward purchase investors’ forward purchase shares, (B) the Class A ordinary shares issuable upon exercise of the forward
purchase investors’ forward purchase warrants and (C) any other Class A ordinary shares acquired by the forward purchase
investors, including any acquisitions after we complete our initial business combination, (ii) cause such registration statement
to be declared effective promptly thereafter, but in no event later than 90 days after the closing of the initial business combination
and (iii) maintain the effectiveness of such registration statement and to ensure the registration statement does not contain
a material omission or misstatement, including by way of amendment or other update, as required, until the earlier of (A) the
date on which a forward purchase investor ceases to hold the securities covered thereby and (B) the date all of the securities
covered thereby can be sold publicly without restriction or limitation under Rule 144 under the Securities Act, and without the
requirement to be in compliance with Rule 144(c)(1) under the Securities Act, subject to certain conditions and limitations set
forth in the forward purchase agreement. We will bear the cost of registering these securities.
Except
as described herein, our sponsor and our directors and executive officers have agreed not to transfer, assign or sell their founder
shares until the earliest of (A) one year after the completion of our initial business combination and (B) subsequent to our initial
business combination, (x) if the closing price of our Class A ordinary shares equals or exceeds $12.00 per share (as adjusted
for share sub-divisions, share capitalizations, reorganizations, recapitalizations and the like) for any 20 trading days within
any 30-trading day period commencing at least 150 days after our initial business combination, or (y) the date on which we complete
a liquidation, merger, share exchange 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. Any permitted transferees will be subject to the same
restrictions and other agreements of our sponsor with respect to any founder shares. We refer to such transfer restrictions throughout
this Annual Report as the lock-up.
In
addition, pursuant to the registration and shareholder rights agreement, our sponsor, upon and following consummation of an initial
business combination, will be entitled to nominate three individuals for appointment to our board of directors, as long as our
sponsor holds any securities covered by the registration and shareholder rights agreement, in addition to other rights as detailed
in the registration and shareholder rights agreement.
Forward
Purchase Agreement
The
Company entered into a forward purchase agreement to which Empower Funding, a newly formed Delaware limited liability company
which has received commitments from one or more funds affiliated with MidOcean, and is an affiliate of our sponsor, will purchase
an aggregate of up to 5,000,000 forward purchase units, consisting of one Class A ordinary share and one-third of one warrant
to purchase one Class A ordinary share for $10.00 per unit, or up to $50,000,000 in the aggregate, in a private placement to close
substantially concurrently with the closing of an initial business combination, subject to approval at such time by the MidOcean
investment committee. The allocation of the forward purchase securities among the ultimate MidOcean funds that will be funding
the forward purchase will be determined by MidOcean, in its sole discretion, at the time of an initial business combination. If
the sale of the forward purchase units fails to close, for any reason, the Company may lack sufficient funds to consummate an
initial business combination. The forward purchase shares and forward purchase warrants will be identical to the Class A ordinary
shares included in the units sold in the Initial Public Offering, except that they will be subject to certain registration rights.
Policy
for Approval of Related Party Transactions
The
audit committee of our board of directors has adopted a charter, providing for the review, approval and/or ratification of “related
party transactions,” which are those transactions required to be disclosed pursuant to Item 404 of Regulation S-K as promulgated
by the SEC, by the audit committee. At its meetings, the audit committee shall be provided with the details of each new, existing,
or proposed related party transaction, including the terms of the transaction, any contractual restrictions that the Company has
already committed to, the business purpose of the transaction, and the benefits of the transaction to the Company and to the relevant
related party. Any member of the committee who has an interest in the related party transaction under review by the committee
shall abstain from voting on the approval of the related party transaction, but may, if so requested by the chairman of the committee,
participate in some or all of the committee’s discussions of the related party transaction. Upon completion of its review
of the related party transaction, the committee may determine to permit or to prohibit the related party transaction.
Director
Independence
The rules of the NYSE require that a majority of our board of directors be independent. An “independent director” is defined generally as a person that, in the opinion of the Company’s board of directors, has no material relationship with the listed company (either directly or as a partner, shareholder or officer of an organization that has a relationship with the Company). Our board of directors has determined that Mr. Anand, Ms. Bianchini, Mr. Jones and Ms. Kaplan are “independent directors” as defined in the NYSE listing standards. Our independent directors meet in executive session at which only independent directors are present as part of regularly scheduled meetings.

---

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
Item 14.
Principal Accounting Fees and Services
The
following is a summary of fees paid or to be paid to Marcum LLP, or Marcum, for services rendered.
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 Marcum in connection with regulatory filings. The aggregate fees billed by Marcum for
professional services rendered for the audit of our annual financial statements, review of the financial information included
in our Forms 10-Q for the respective periods and other required filings with the SEC for the period from August 19, 2020 (inception)
through December 31, 2020 totaled $39,140. The above amounts include interim procedures and audit fees, as well as attendance
at audit committee meetings.
Audit-Related
Fees. Audit-related services consist of fees billed for assurance and related services that are reasonably related to performance
of the audit or review of our financial statements and are not reported under “Audit Fees.” These services include
attest services that are not required by statute or regulation and consultations concerning financial accounting and reporting
standards. We did not pay Marcum for consultations concerning financial accounting and reporting standards for the period from
August 19, 2020 (inception) through December 31, 2020.
Tax
Fees. We did not pay Marcum for tax planning and tax advice for the period from August 19, 2020 (inception) through December
31, 2020.
All
Other Fees. We did not pay Marcum for other services for the period from August 19, 2020 (inception) through December 31,
2020.
Pre-Approval
Policy
Our
audit committee was formed upon the consummation of our Initial Public Offering. As a result, the audit committee did not pre-approve
all of the foregoing services, although any services rendered prior to the formation of our audit committee were approved by our
board of directors. Since the formation of our audit committee, and on a going-forward basis, the audit committee has and will
pre-approve all auditing services and permitted non-audit services to be performed for us by our auditors, including the fees
and terms thereof (subject to the de minimis exceptions for non-audit services described in the Exchange Act which are approved
by the audit committee prior to the completion of the audit).
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 Form 10-K:
(1) Financial
Statements:
Page
Report
of Independent Registered Public Accounting Firm
Balance
Sheet
Statement
of Operations
Statement
of Changes in Shareholders’ Equity
Statement
of Cash Flows
Notes
to Financial Statements
(2) Financial
Statement Schedules:
None.
(3) Exhibits
The
exhibits listed in the below Exhibit Index are filed or incorporated by reference as part of this Annual Report on Form 10-K.
3.1(1)
Amended
and Restated Memorandum and Articles of Association.
4.1(1)
Warrant Agreement, dated October 6, 2020, between the Company and Continental Stock Transfer & Trust Company as warrant agent.
4.2(2)
Specimen
Class A Ordinary Share Certificate.
4.3(2)
Specimen
Warrant Certificate.
4.4(2)
Specimen Unit Certificate (filed as Exhibit 4.1 to the Form S-1 (File No. 333-248899), filed with the SEC on September 18, 2020).
4.5*
Description of Securities Registered under Section 12 of the Exchange Act
10.1(1)
Investment
Management Trust Account Agreement, dated October 6, 2020, between the Company and Continental Stock Transfer & Trust
Company, as trustee.
10.2(1)
Registration
and Shareholder Rights Agreement, dated October 6, 2020, between the Company and Empower Sponsor Holdings LLC.
10.3(1)
Private
Placement Warrants Purchase Agreement, dated October 6, 2020, between the Company and Empower Sponsor Holdings LLC.
10.4(1)
Letter
Agreement, dated October 6, 2020, among the Company, Empower Sponsor Holdings LLC and each of the officers and directors of
the Company.
10.5(1)
Forward
Purchase Agreement, dated October 6, 2020, between the Company and Empower Funding LLC.
10.6(2)
Securities Subscription Agreement, dated as of August 21, 2020, between the Company and Empower Sponsor Holdings LLC
10.7*
Indemnity Agreement, dated October 9, 2020, between the Company and Matthew Rubel.
10.8*
Indemnity Agreement, dated October 9, 2020, between the Company and Andrew Spring.
10.9*
Indemnity Agreement, dated October 9, 2020, between the Company and Beth Kaplan.
10.10*
Indemnity Agreement, dated October 9, 2020, between the Company and Gina Bianchini.
10.11*
Indemnity Agreement, dated October 9, 2020, between the Company and Graham Clempson.
10.12*
Indemnity Agreement, dated October 9, 2020, between the Company and Jeffrey Jones.
10.13*
Indemnity Agreement, dated October 9, 2020, between the Company and Krishnan Anand.
31.1*
Certification of the Principal Executive Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*
Certification of the Principal Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1**
Certification of the 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 the 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.CAL
XBRL
Taxonomy Extension Calculation Linkbase Document
101.SCH
XBRL
Taxonomy Extension Schema Document
101.DEF
XBRL
Taxonomy Extension Definition Linkbase Document
101.LAB
XBRL
Taxonomy Extension Labels Linkbase Document
101.PRE
XBRL
Taxonomy Extension Presentation Linkbase Document
(1) Incorporated
by reference to our Current Report on Form 8-K filed on October 13, 2020.
(2) Incorporated
by reference to an exhibit to the Registrant’s Form S-1 (File No. 333-248899),
filed with the SEC on September 18, 2020.
* Filed
herewith.
** Furnished
herewith.