Table of Contents
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM
10-Q
 
 
(Mark One)
☒
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
For the quarterly period ended September 30, 2023
 
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from
    
    
    
    
to
    
    
    
    
Commission File Number
001-41161
 
 
Investcorp Europe Acquisition Corp I
(Exact name of registrant as specified in its charter)
 
 
 
Cayman Islands
  
N/A
(State or other jurisdiction of
incorporation)
  
(IRS Employer
Identification No.)
Century Yard, Cricket Square
Elgin Avenue
P.O. Box 1111, George Town
Grand Cayman, Cayman Islands
  
KY1-1102
(Address of principal executive offices)
  
(Zip Code)
Registrant’s telephone number, including area code: +1 (345)
949-5122
 
 
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class
  
Trading
Symbol(s)
  
Name of each exchange
on which registered
Units, each consisting of one Class A ordinary share and
one-half
of one redeemable warrant
  
IVCBU
  
The Nasdaq Stock Market LLC
Class A ordinary shares, par value $0.0001 per share
  
IVCB
  
The Nasdaq Stock Market LLC
Redeemable warrants, each whole warrant exercisable for one Class A ordinary share at an exercise price of $11.50
  
IVCBW
  
The Nasdaq Stock Market LLC
Securities registered pursuant to Section 12(g) of the Act: None
 
 
Indicate by check mark whether the Registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    YES  ☒    NO  ☐
Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation
S-T
(§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files).    YES  ☒    NO  ☐
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a
non-accelerated
filer, a smaller reporting company, or an emerging growth company. See the definition of “large accelerated filer”, “accelerated filer”, and “smaller reporting company” in Rule
12b-2
of the Exchange Act.:
 
Large accelerated filer   ☐    Accelerated filer   ☐
Non-accelerated
filer		   ☒    Smaller reporting company   ☒
     Emerging growth company   ☒
If an emerging growth company, indicate by the check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to section 13(a) of the Exchange Act.  ☐
Indicate by check mark whether the Registrant is a shell company (as defined in Rule
12b-2
of the Exchange Act).    YES  ☒    NO  ☐
As of November 14, 2023, there were 19,005,667 Class A ordinary shares, $0.0001 par value, and 8,625,000 Class B ordinary shares, $0.0001 par value, issued and outstanding.
 
 
 

Table of Contents

INVESTCORP EUROPE ACQUISITION CORP I

INDEX TO FINANCIAL STATEMENTS

 

     Page  

PART I FINANCIAL INFORMATION

   

Item 1. Financial Statements

   

Condensed Balance Sheets as of September 30, 2023 (unaudited) and December 31, 2022

      1  

Condensed Statements of Operations for the three and nine months ended September 30, 2023 (unaudited) and the three and nine months ended September 30, 2022 (unaudited)

      2  

Condensed Statements of Changes in Shareholders’ Deficit for the three and nine months ended September 30, 2023 (unaudited) and the three and nine months ended September 30, 2022 (unaudited)

      3  

Condensed Statements of Cash Flows for the nine months ended September 30, 2023 (unaudited) and the nine months ended September 30, 2022 (unaudited)

      5  

Notes to Condensed Financial Statements (unaudited)

      6  

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

      23  

Item 3. Quantitative and Qualitative Disclosures About Market Risk

      29  

Item 4. Controls and Procedures

      29  

PART II OTHER INFORMATION

   

Item 1. Legal Proceedings

      29  

Item 1A. Risk Factors

      30  

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

      30  

Item 3. Defaults Upon Senior Securities

      30  

Item 4. Mine Safety Disclosures

      30  

Item 5. Other Information

      30  

Item 6. Exhibits

      30  

Signatures

      31  

Table of Contents
http://fasb.org/us-gaap/2023#FairValueAdjustmentOfWarrantsP3Dhttp://fasb.org/us-gaap/2023#DerivativeLiabilitiesNoncurrenthttp://fasb.org/us-gaap/2023#DerivativeLiabilitiesNoncurrenthttp://fasb.org/us-gaap/2023#DerivativeLiabilitiesNoncurrenthttp://fasb.org/us-gaap/2023#DerivativeLiabilitiesNoncurrenthttp://fasb.org/us-gaap/2023#DerivativeLiabilitiesNoncurrenthttp://fasb.org/us-gaap/2023#DerivativeLiabilitiesNoncurrent
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
INVESTCORP EUROPE ACQUISITION CORP I
CONDENSED BALANCE SHEETS
 
    
As of

September 30, 2023

(Unaudited)
    
As of

December 31, 2022
  
Assets
     
Current Assets
     
Cash
    $ 31,052     $ 479,009  
Prepaid expenses
      113,423       589,702  
  
 
 
    
 
 
  
Total Current Assets
      144,475       1,068,711  
Marketable securities held in Trust Account
      206,459,256       356,976,644  
  
 
 
    
 
 
  
Total Assets
    $ 206,603,731     $ 358,045,355  
  
 
 
    
 
 
  
Liabilities, Shares Subject to Redemption and Shareholders’ Deficit
     
Current Liabilities
     
Accounts payable and accrued expenses
    $ 7,153,522     $ 1,284,291  
Note payable to Sponsor
      3,315,000       —    
  
 
 
    
 
 
  
Total Current Liabilities
      10,468,522       1,284,291  
Warrant liabilities
      10,109,000       1,552,250  
Deferred underwriting fee payable
      12,075,000       12,075,000  
  
 
 
    
 
 
  
Total Liabilities
    $ 32,652,522     $ 14,911,541  
  
 
 
    
 
 
  
Commitments and Contingencies (Note 10)
     
Class A ordinary shares subject to possible redemption, $0.0001 par value; 19,005,667 shares at $10.86 and 34,500,000 shares at $10.35 per share redemption value at September 30, 2023 and December 31, 2022, respectively
      206,459,256       356,976,644  
Shareholders’ Deficit
     
Preference shares, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding
      —         —    
Class A ordinary shares, $0.0001 par value, 400,000,000 shares authorized, none issued and outstanding at September 30, 2023 and December 31, 2022 (excluding 19,005,667 and 34,500,000 shares subject to possible redemption, respectively)
      —         —    
Class B ordinary shares, $0.0001 par value, 40,000,000 shares authorized, 8,625,000 issued and outstanding shares at September 30, 2023 and December 31, 2022
      863       863  
Accumulated deficit
      (32,508,910 )      (13,843,693 ) 
  
 
 
    
 
 
  
Total Shareholders’ Deficit
      (32,508,047 )      (13,842,830 ) 
  
 
 
    
 
 
  
Total Liabilities, Shares Subject to Redemption and Shareholders’ Deficit
    $ 206,603,731     $ 358,045,355  
  
 
 
    
 
 
  
The accompanying notes are an integral part of these condensed financial statements.
 
1
INVESTCORP EUROPE ACQUISITION CORP I
CONDENSED UNAUDITED STATEMENTS OF OPERATIONS
 
    
For the three months ended
    
For the nine months ended
  
    
September 30, 2023
    
September 30, 2022
    
September 30, 2023
    
September 30, 2022
  
Formation and operating costs
    $ 1,058,457     $ 860,671     $ 7,653,872     $ 1,622,634  
  
 
 
    
 
 
    
 
 
    
 
 
  
Loss from Operations
      (1,058,457 )      (860,671 )      (7,653,872 )      (1,622,634 ) 
Other income (expense)
         
Change in fair value of warrant liabilities
      (3,292,000 )      2,067,000       (8,556,750 )      23,443,500  
Interest earned on Marketable securities held in Trust Account
      2,647,851       1,588,336       8,638,982       2,098,957  
Gain (loss) on foreign exchange
      (4,595 )      —        (4,595 )      9,239  
  
 
 
    
 
 
    
 
 
    
 
 
  
Total other income (expense)
      (648,744 )      3,655,336       77,637       25,551,696  
  
 
 
    
 
 
    
 
 
    
 
 
  
Net Income (Loss)
    $ (1,707,201 )    $ 2,794,665     $ (7,576,235 )    $ 23,929,062  
  
 
 
    
 
 
    
 
 
    
 
 
  
Basic and diluted weighted average redeemable Class A ordinary shares outstanding
      19,005,667       34,500,000       22,865,061       34,500,000  
  
 
 
    
 
 
    
 
 
    
 
 
  
Basic and diluted net income (loss) per redeemable Class A ordinary share
    $ (0.06 )    $ 0.06     $ (0.24 )    $ 0.55  
  
 
 
    
 
 
    
 
 
    
 
 
  
Basic and diluted weighted average
non-redeemable
Class B ordinary shares outstanding
      8,625,000       8,625,000       8,625,000       8,625,000  
  
 
 
    
 
 
    
 
 
    
 
 
  
Basic and diluted net income (loss) per
non-redeemable
Class B ordinary share
    $ (0.06 )    $ 0.06     $ (0.24 )    $ 0.55  
  
 
 
    
 
 
    
 
 
    
 
 
  
The accompanying notes are an integral part of these condensed financial statements.
 
 
2
INVESTCORP EUROPE ACQUISITION CORP I
CONDENSED UNAUDITED STATEMENTS OF CHANGES IN SHAREHOLDERS’ DEFICIT
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023
 
    
Ordinary Shares

Class B
     
Additional

Paid-in

Capital
     
Accumulated

Deficit
    
Total

Shareholders’

Deficit
  
    
Shares
     
Amount
  
Balance – December 31, 2022 (audited)
      8,625,000      $ 863      $ —       $ (13,843,693 )    $ (13,842,830 ) 
Extension Contribution
      —         —         —         (350,000 )      (350,000 ) 
Remeasurement of redeemable shares to redemption value
      —         —         —         (3,608,818 )      (3,608,818 ) 
Net loss
      —         —         —         (2,116,311 )      (2,116,311 ) 
    
 
 
     
 
 
     
 
 
     
 
 
    
 
 
  
Balance – March 31, 2023 (unaudited)
      8,625,000      $ 863      $ —       $ (19,918,822 )    $ (19,917,959 ) 
Extension Contribution
      —         —         —         (1,050,000 )      (1,050,000 ) 
Remeasurement of redeemable shares to redemption value
      —         —         —         (2,382,313 )      (2,382,313 ) 
Net loss
      —         —         —         (3,752,723 )      (3,752,723 ) 
    
 
 
     
 
 
     
 
 
     
 
 
    
 
 
  
Balance – June 30, 2023 (unaudited)
      8,625,000      $ 863      $ —       $ (27,103,858 )    $ (27,102,995 ) 
                                             
Extension Contribution
      —         —         —         (1,050,000 )      (1,050,000 ) 
Remeasurement of redeemable shares to redemption value
      —         —         —         (2,647,851 )      (2,647,851 ) 
Net loss
      —         —         —         (1,707,201 )      (1,707,201 ) 
    
 
 
     
 
 
     
 
 
     
 
 
    
 
 
  
Balance – September 30, 2023 (unaudited)
   
 
8,625,000
 
   
$
863
 
   
 
— 
 
   
$
(32,508,910
) 
  
$
(32,508,047
) 
    
 
 
     
 
 
     
 
 
     
 
 
    
 
 
  
The accompanying notes are an integral part of these condensed financial statements.
 
3
INVESTCORP EUROPE ACQUISITION CORP I
CONDENSED UNAUDITED STATEMENTS OF CHANGES IN SHAREHOLDERS’ DEFICIT
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022
 
    
Ordinary Shares

Class B
     
Additional

Paid-in

Capital
     
Accumulated

Deficit
    
Total

Shareholders’

Deficit
  
    
Shares
     
Amount
  
Balance – December 31, 2021 (audited)
      8,625,000      $ 863      $ —       $ (35,828,005 )    $ (35,827,142 ) 
Remeasurement of redeemable shares to redemption value
      —         —         —         94,443       94,443  
Net income
      —         —         —         15,891,664       15,891,664  
    
 
 
     
 
 
     
 
 
     
 
 
    
 
 
  
Balance – March 31, 2022 (unaudited)
      8,625,000      $ 863      $ —       $ (19,841,898 )    $ (19,841,035 ) 
Net income
      —         —         —         5,242,733       5,242,733  
    
 
 
     
 
 
     
 
 
     
 
 
    
 
 
  
Balance – June 30, 2022 (unaudited)
      8,625,000      $ 863      $ —       $ (14,599,165 )    $ (14,596,302 ) 
Remeasurement of redeemable shares to redemption value
      —         —         —         (2,099,844 )      (2,099,844 ) 
Net income
      —         —         —         2,794,665       2,794,665  
    
 
 
     
 
 
     
 
 
     
 
 
    
 
 
  
Balance – September 30, 2022 (unaudited)
   
 
8,625,000
 
   
$
863
 
   
 
— 
 
   
$
(13,904,344
) 
  
$
(13,903,481
) 
    
 
 
     
 
 
     
 
 
     
 
 
    
 
 
  
The accompanying notes are an integral part of these condensed financial statements.
 
4
INVESTCORP EUROPE ACQUISITION CORP I
CONDENSED UNAUDITED STATEMENTS OF CASH FLOWS
 
    
For the nine months ended
  
    
September 30,
2023
    
September 30,
2022
  
Cash Flows from Operating Activities:
     
Net income (loss)
    $ (7,576,235 )    $ 23,929,062  
Adjustments to reconcile net income (loss) to net cash used in operating activities:
     
Interest earned on marketable securities held in Trust Account
      (8,638,982 )      (2,098,956 ) 
Change in fair value of warrant liabilities
      8,556,750       (23,443,500 ) 
Changes in operating assets and liabilities:
     
Prepaid expenses
      476,279       414,579  
Accounts payable and accrued expenses
      5,869,231       (650,405 ) 
Accrued offering expenses
      —        (205,244 ) 
  
 
 
    
 
 
  
Net cash used in operating activities
      (1,312,957 )      (2,054,464 ) 
Cash Flows from Investing Activities:
     
Extension Contribution
      (2,450,000 )      —   
Withdrawal from Trust Account for redemptions
      161,606,370       —   
  
 
 
    
 
 
  
Net cash provided by investing activities
      159,156,370       —   
Cash Flows from Financing Activities:
     
Proceeds from affiliate promissory note
      3,315,000       —   
Payment to Redeeming Shareholders
      (161,606,370 )      —   
  
 
 
    
 
 
  
Net cash used in financing activities
      (158,291,370 )      —   
  
 
 
    
 
 
  
Net change in cash
      (447,957 )      (2,054,464 ) 
Cash at beginning of period
      479,009       2,632,930  
  
 
 
    
 
 
  
Cash at end of period
    $ 31,052     $ 578,466  
  
 
 
    
 
 
  
Supplemental disclosure of cash flow information:
     
  
 
 
    
 
 
  
Remeasurement of Class A Ordinary Shares to redemption value
    $ 8,638,982     $ 2,099,844  
  
 
 
    
 
 
  
The accompanying notes are an integral part of these condensed financial statements.
 
5
INVESTCORP EUROPE ACQUISITION CORP I
NOTES TO CONDENSED FINANCIAL STATEMENTS
(UNAUDITED)
Note 1—Organization and Business Operation
Investcorp Asia Acquisition Corp I was incorporated in the Cayman Islands on March 22, 2021. On October 7, 2021, the Company changed its name to Investcorp Europe Acquisition Corp I (the “Company”). The Company was formed for the purpose of entering into a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses or assets (the “Business Combination”). The Company is an early stage and emerging growth company and, as such, the Company is subject to all of the risks associated with early stage and emerging growth companies.
As of September 30, 2023, the Company had not commenced any operations. All activity for the period from March 22, 2021 (inception) through September 30, 2023 relates to the Company’s formation and Initial Public Offering of units (the “IPO”) described below, and since the IPO, the search for a target business. The Company will not generate any operating revenues until after the completion of its initial Business Combination, at the earliest. The Company expects to generate
non-operating
income in the form of interest income on cash and cash equivalents from the proceeds derived from the IPO. The Company has selected December 31 as its fiscal year end.
The registration statement for the Company’s IPO was declared effective on December 14, 2021 (the “Effective Date”). On December 17, 2021, the Company consummated its IPO of 34,500,000 units, which included the full exercise of the underwriter’s over-allotment option of 4,500,000 units (the “Units” and, with respect to the ordinary shares included in the Units being offered, the “Public Shares”) at $10.00 per Unit, generating gross proceeds of $345,000,000, which is discussed further in Note 3.
Simultaneously with the closing of the IPO, the Company consummated the sale of 16,700,000 warrants (the “Private Placement Warrants”), at a price of $1.00 per Private Placement Warrant in a private placement to Europe Acquisition Holdings Limited (the “Sponsor”), generating proceeds of $16,700,000.
Following the closing of the IPO on December 17, 2021, $351,900,000 ($10.20 per Unit) from the net proceeds of the sale of the Units in the IPO and the sale of the Private Placement Warrants was placed in a Trust Account (“Trust Account”), located in the United States at a nationally recognized financial institution, with Continental Stock Transfer & Trust Company acting as trustee (“Continental”), and invested only 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 will not be permitted to invest in other securities or assets. The Trust Account is intended as a holding place for funds pending the earliest to occur of either: (i) the completion of the initial Business Combination; (ii) the redemption of any Public Shares properly tendered in connection with a shareholder vote to amend the Company’s amended and restated memorandum and articles of association (the “Articles”) to (A) modify the substance or timing of the Company’s obligation to allow redemption in connection with the initial Business Combination or to redeem 100% of the Public Shares if the Company does not complete the initial Business Combination within the time frame to consummate the business combination period (the “Business Combination Period”) as defined in its Articles or during any extended time that the Company has to consummate a Business Combination as a result of a shareholder vote to amend its Articles (an “Extension Period”) or (B) with respect to any other provision relating to shareholders’ rights or
pre-Business
Combination activity; and (iii) absent an initial Business Combination within the Business Combination Period or Extension Period from the closing of the initial public offering, the return of the funds held in the Trust Account to the Company’s public shareholders as part of the redemption of the Public Shares. If the Company does not invest the proceeds as discussed above, the Company may be deemed to be subject to the Investment Company Act.
If the Company were deemed to be subject to the Investment Company Act, compliance with these additional regulatory obligations would require additional expenses for which the Company has not allotted funds and may hinder the ability to complete a Business Combination. If the Company has not consummated the initial Business Combination within the required time period, the public shareholders may receive only approximately $10.20 per Public Share, or less in certain circumstances, on the liquidation of the Trust Account and the warrants will expire worthless.
The Company will proceed with a Business Combination if the Company seeks shareholder approval and a majority of the shares voted are voted in favor of the Business Combination. If a shareholder vote is not required by law and the Company does not decide to hold a shareholder vote for business or other reasons, the Company will, pursuant to its Amended and Restated Certificate of Incorporation (the “Amended and Restated Certificate of Incorporation”), conduct the redemptions pursuant to the tender offer rules of the U.S. Securities and Exchange Commission (“SEC”) and file tender offer documents with the SEC prior to completing a Business Combination. If, however, shareholder approval of the transaction is required by law, or the Company decides
 
6
to obtain shareholder approval for business or other reasons, the Company will offer to redeem shares in conjunction with a proxy solicitation pursuant to the proxy rules and not pursuant to the tender offer rules. If the Company seeks shareholder approval in connection with a Business Combination, the Sponsor has agreed to vote its Founder Shares (as defined in Note 6) and any Public Shares purchased during or after the Initial Public Offering in favor of approving a Business Combination. Additionally, each public shareholder may elect to redeem their Public Shares irrespective of whether they vote for or against the proposed transaction or don’t vote at all.
Notwithstanding the above, if the Company seeks shareholder approval of a Business Combination and it does not conduct redemptions pursuant to the tender offer rules, the Amended and Restated Certificate of Incorporation provides that a public shareholder, together with any affiliate of such shareholder or any other person with whom such shareholder is acting in concert or as a “group” as defined under Section 13 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), will be restricted from redeeming its shares with respect to more than an aggregate of 15% or more of the Public Shares, without the prior consent of the Company.
The Sponsor has agreed (a) to waive its redemption rights with respect to its Founder Shares and Public Shares held by it in connection with the completion of a Business Combination, (b) to waive its liquidation rights with respect to the Founder Shares if the Company fails to complete a Business Combination within the Extension Period and (c) not to propose an amendment to the Amended and Restated Certificate of Incorporation (i) to modify the substance or timing of the Company’s obligation to allow redemption in connection with the Company’s initial Business Combination or to redeem 100% of its Public Shares if the Company does not complete a Business Combination or (ii) with respect to any other provision relating to shareholders’ rights or
pre-initial
business combination activity, unless the Company provides the public shareholders with the opportunity to redeem their Public Shares in conjunction with any such amendment.
The Sponsor has agreed to waive its liquidation rights with respect to the Founder Shares if the Company fails to complete a Business Combination within the Extension Period. However, if the Sponsor acquires Public Shares, such Public Shares will be entitled to liquidating distributions from the Trust Account if the Company fails to complete a Business Combination within the Extension Period. The underwriters have agreed to waive their rights to their deferred underwriting commission (see Note 10) held in the Trust Account in the event the Company does not complete a Business Combination within the Extension Period; and, in such event, such amounts will be included with the other funds held in the Trust Account that will be available to fund the redemption of the Public Shares. In the event of such distribution, it is possible that the per share value of the assets remaining available for distribution will be less than $10.20 per Public Share
In order to protect the amounts held in the Trust Account, the Sponsor has agreed to be liable to the Company if and to the extent any claims by a third party for services rendered or products sold to the Company, or a prospective target business with which the Company has discussed entering into a transaction agreement, reduce the amount of funds in the Trust Account to below the lesser of (1) $10.20 per Public Share or (2) 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 $10.20 per Public Share due to reductions in the value of the trust assets, less taxes payable, provided that such liability will not apply to any claims under the Company’s indemnity of the underwriters of the Initial Public Offering against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the “Securities Act”). Moreover, in the event that an executed waiver is deemed to be unenforceable against a third party, the Sponsor will not be responsible to the extent of any liability for such third-party claims. The Company will seek to reduce the possibility that the Sponsor will have to indemnify the Trust Account due to claims of creditors by endeavoring to have all vendors, service providers (except the Company’s independent registered public accounting firm), prospective target businesses or other entities with which the Company does business, execute agreements with the Company waiving any right, title, interest or claim of any kind in or to monies held in the Trust Account.
Extraordinary General Meeting
On March 14, 2023, the Company convened an Extraordinary General Meeting (the “Extraordinary General Meeting”) virtually, to vote on the proposals described below. A total of 34,372,929 of the Company’s Class A ordinary shares and Class B ordinary shares (the “Ordinary Shares”), or 79.1% of the Company’s outstanding shares as of February 22, 2023, the record date for the Extraordinary General Meeting, were represented virtually or by proxy at the Extraordinary General Meeting.
As approved by its shareholders at the Extraordinary Meeting, the Company filed an amendment (the “Extension Amendment”). The Extension Amendment (i) extends the date by which the Company must consummate its initial business combination from March 17, 2023 to December 17, 2023 and (ii) remove the limitation that the Company shall not redeem public shares to the extent that such redemption would cause the Company’s net tangible assets to be less than $5,000,001.
 
7
Additionally, at the Extraordinary General Meeting holders of Public Shares were afforded the opportunity to require the Company to redeem their Public Shares for their pro rata share of the Trust Account. In connection with the vote to approve the Extension Amendment and the Redemption Limitation, the holders of 15,494,333 Class A ordinary shares properly exercised their rights to redeem their shares for cash at a redemption price of approximately $10.43 per share for an aggregate redemption amount of approximately $161.6 million, leaving 19,005,667 public shares remaining outstanding. Following this redemption, the balance in the Trust Account was approximately $198.2 million.
In connection with the approval of the Extension Amendment, the Sponsor has agreed, by making monthly advancements on the Loan (as defined below), to contribute (each such contribution, an “Extension Contribution”) into the Trust Account the lesser of (x) an aggregate of $350,000 or (y) $0.03 per share for each public share that was not redeemed at the Extraordinary General Meeting for each monthly period (commencing on March 17, 2023 and ending on the 17
th
 day of each subsequent month), or prior thereof, until the earlier of the completion of the initial business combination and the end of the Extension Period. As of September 30, 2023, the Company has made seven contribution payments, each in the amount of $350,000, under the Loan as described below under “—Liquidity, Capital Resources and Going Concern.”
On November 9, 2023, the Company filed a definitive proxy statement on Schedule 14A (“the Extension Proxy”) with respect to an extraordinary general meeting to seek approval from the shareholders of an amendment to its Articles to extend the date by which the Company must consummate its initial business combination from December 17, 2023 to June 17, 2024, as more fully described in the Extension Proxy.
While the funds in the Trust Account have, since the IPO, been held only in U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act with a maturity of 185 days or less, or in money market funds meeting certain conditions under Rule
2a-7
under the Investment Company Act which invest only in direct U.S. government treasury obligations, to mitigate the risk of being viewed as operating an unregistered investment company (including pursuant to the subjective test of Section 3(a)(1)(A) of the Investment Company Act), the Company would, on or prior to the
24-month
anniversary of the effective date of the registration statement relating to the IPO, instruct Continental to liquidate the U.S. government securities or money market funds held in the Trust Account and thereafter to hold all funds in the Trust Account in cash (which may include demand deposit accounts) until the earlier of consummation of the Company’s initial business combination or liquidation.
Liquidity, Capital Resources and Going Concern
As of September 30, 2023, the Company had $31,052 in its operating bank accounts and working capital deficit of $10,324,047. As of September 30, 2023, $8,638,982 of the amount on deposit in marketable securities held in the Trust Account represented interest income and $2,450,000 represented an Extension Contribution, all of which are available to pay the Company’s tax obligations, if any.
To finance transaction costs in connection with the Business Combination, the Company’s Sponsor, an affiliate of the Sponsor or certain of the Company’s officers and directors may, but are not obligated to, provide the Company with Working Capital Loans, as defined below (see Note 6).
On March 7, 2023, the Company entered into
a non-interest bearing
convertible unsecured loan (the “Loan”) in the principal amount of up to $2,000,000 from one of the Sponsor’s affiliates to provide the Company with additional working capital and to fund the Extension Contributions. The Loan represents a Working Capital Loan (see Note 6). The portion of the Loan used to provide the Company with additional working capital will not be deposited into the Trust Account. If the Company does not consummate an initial business combination by the Extension Period, the Loan will be repaid only from funds held outside of the Trust Account or will be forfeited, eliminated or otherwise forgiven. The Loan is convertible into Private Placement Warrants of the post-business combination entity at a price of $1.00 per warrant at the option of the lender. Such warrants would be identical to the Private Placement Warrants.
On July 6, 2023, the Company entered into
a non-interest bearing
unsecured loan in the principal amount of up to $1,700,000 from the Sponsor to fund monthly contributions into the Trust Account until the earlier of a completion of the Business Combination or December 17, 2023. The portion of the Loan used to provide the Company with additional working capital will not be deposited into the Trust Account. This brought the full related party loan available to the Company to $3,700,000.
As of September 30, 2023 there was $3,315,000 outstanding under the Loans entered into on March 7, 2023 and July 6, 2023 as described above. As of December 31, 2022, there were
no
amounts outstanding under any Working Capital Loans (as defined below).
If the Company is not able to consummate a Business Combination before the end of the Extension Period, the Company will commence an automatic winding up, dissolution and liquidation. Management has determined that the automatic liquidation, should a Business Combination not occur, and potential subsequent dissolution also raises substantial doubt about the Company’s ability to continue as a going concern. While management intends to complete a Business Combination, it is uncertain whether the Company will be able to do so. No adjustments have been made to the carrying amounts of assets or liabilities.
 
8
Under Accounting Standards Update (ASU)
2014-15,
“Presentation of Financial Statements—Going Concern (Subtopic
205-40):
Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” (“ASU
2014-15”),
these conditions, including the working capital deficit as well as the remaining time in the Extension Period, raise substantial doubt about the Company’s ability to continue as a going concern for a period of time within one year after the date that the financial statements are issued. There is no assurance that the Company’s plan to consummate a Business Combination will be successful within the Extension Period. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Note 2—Significant Accounting Policies
Basis of Presentation
The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the instructions to Form
10-Q
and Article 8 of Regulation
S-X
of the SEC. Certain information or footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a complete presentation of financial position, results of operations, or cash flows. In the opinion of management, the accompanying unaudited condensed financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented.
The accompanying unaudited condensed financial statements should be read in conjunction with the Company’s Annual Report on Form
10-K
for the year ended December 31, 2022, as filed with the SEC on April 24, 2023, which contains the audited financial statements and notes thereto. The financial information as of December 31, 2022, is derived from the audited financial statements presented in the Company’s Annual Report on Form
10-
K for the year ended December 31, 2022, as filed with the SEC on April 24, 2023.
Emerging Growth Company Status
The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart our Business
Start-ups
Act of 2012, (the “JOBS Act”), and it 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 its 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.
Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to
non-emerging
growth companies but any such election to opt out is irrevocable. The Company has 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, the Company, 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 the Company’s 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.
Use of Estimates
The preparation of these financial statements in conformity with GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period.
 
9
Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from those estimates.
Cash and Cash Equivalents
The Company considers all highly liquid investments, which include short-term bank deposits that are not restricted as to withdrawal or use, and short-term debentures, with original periods to maturity not exceeding three months, to be cash equivalents. The Company had cash of $31,052 and $479,009 as of September 30, 2023 and December 31, 2022. The Company had no cash equivalents as of September 30, 2023 and December 31, 2022.
Marketable Securities Held in Trust Account
Investments in money market funds are recognized at fair value and are presented on the balance sheets at fair value at the end of each reporting period. Gains and losses resulting from the change in fair value of these securities is included in income from marketable securities held in the Trust Account in the accompanying statement of operations. The estimated fair values of marketable securities held in the Trust Account are determined using available market information. As of September 30, 2023 and December 31, 2022, the assets held in the Trust Account consisted of cash and money market mutual funds in the amount of $206,459,256 and $356,976,644, respectively.
Concentration of Credit Risk
Financial instruments that potentially subject the Company to concentrations of credit risk consist of a cash account in a financial institution, which, at times, may exceed the Federal Depository Insurance Coverage of $250,000. As of September 30, 2023, the Company has not experienced losses on this account and management believes the Company is not exposed to significant risks on such account.
Offering Costs Associated with Initial Public Offering
The Company complies with the requirements of the ASC
340-10-S99-1
and SEC Staff Accounting Bulletin (“SAB”) Topic 5A — “Expenses of Offering”. Offering costs consist principally of professional and registration fees incurred through the balance sheet date that are related to the IPO. Offering costs are charged to shareholders’ equity or the statement of operations based on the relative value of the Units that consist of one Class A ordinary share and
one-half
of one redeemable warrant (“Public Warrants”) and the Private Placement Warrants to the proceeds received from the Units sold upon the completion of the IPO. Accordingly, on December 17, 2021 offering costs totaling $20,078,227 (consisting of $6,900,000 of underwriting fee, $12,075,000 of deferred underwriting fee and $1,103,227 of other offering costs) were recognized with $854,057 included in accumulated deficit as an allocation for the Public Warrants and the Private Placement Warrants. Subsequent to the IPO, upon invoice receipt, other offering costs were adjusted downwards by $94,443 to true up estimates to the actual expenses incurred.
Net Income (Loss) Per Ordinary Share
The Company’s statements of operations include a presentation of net income (loss) per share for ordinary shares subject to possible redemption and applies the
two-class
method in calculating net income (loss) per share. Net income (loss) per ordinary share, basic and diluted, is calculated by dividing the
pro-
rata allocation of net income (loss) for each class, by the weighted average number of Class A and Class B
non-redeemable
ordinary shares outstanding for the period. Net income (loss) is allocated
pro-rata
between Class A redeemable and Class B
non-redeemable
shares based on their respective weighted average shares outstanding for the period. As of September 30, 2023, the potential ordinary shares for outstanding Public and Private Warrants to purchase the Company’s ordinary shares were excluded from diluted earnings per share for the three and nine months ended September 30, 2023 because they are contingently exercisable, and the contingencies have not yet been met. As a result, diluted net income per ordinary share is the same as basic net income per ordinary share for the period.
 
10
The following table reflects the calculation of basic and diluted net income per ordinary share (in dollars, except per share amounts):
 
    
For the three months ended
  
    
September 30, 2023
    
September 30, 2022
  
    
Redeemable

Class A

ordinary shares
    
Non-

Redeemable

Class B

ordinary shares
    
Redeemable

Class A

ordinary

shares
     
Non-

Redeemable

Class B

ordinary shares
  
Basic and diluted net income (loss) per share:
          
Numerator:
          
Allocation of net income (loss)
    $ (1,174,293 )    $ (532,908 )    $ 2,235,732      $ 558,933  
  
 
 
    
 
 
    
 
 
     
 
 
  
Denominator:
          
Weighted-average shares outstanding
      19,005,667       8,625,000       34,500,000        8,625,000  
  
 
 
    
 
 
    
 
 
     
 
 
  
Basic and diluted net income (loss) per share
    $ (0.06 )    $ (0.06 )    $ 0.06      $ 0.06  
  
 
 
    
 
 
    
 
 
     
 
 
  
    
For the nine months ended
  
    
September 30, 2023
    
September 30, 2022
  
    
Redeemable

Class A

ordinary shares
    
Non-

Redeemable

Class B

ordinary shares
    
Redeemable

Class A

ordinary

shares
     
Non-

Redeemable

Class B

ordinary shares
  
Basic and diluted net income (loss) per share:
          
Numerator:
          
Allocation of net income (loss)
    $ (5,501,135 )    $ (2,075,100 )    $ 19,143,250      $ 4,785,812  
  
 
 
    
 
 
    
 
 
     
 
 
  
Denominator:
          
Weighted-average shares outstanding
      22,865,061       8,625,000       34,500,000        8,625,000  
  
 
 
    
 
 
    
 
 
     
 
 
  
Basic and diluted net income (loss) per share
    $ (0.24 )    $ (0.24 )    $ 0.55      $ 0.55  
  
 
 
    
 
 
    
 
 
     
 
 
  
Fair Value of Financial Instruments
The fair value of the Company’s assets and liabilities approximates the carrying amounts represented in the accompanying balance sheet, primarily due to their short-term nature.
Fair Value Measurements
The Company applies ASC 820, which establishes a framework for measuring fair value and clarifies the definition of fair value within that framework. ASC 820 defines fair value as an exit price, which is the price that would be received for an asset or paid to transfer a liability in the Company’s principal or most advantageous market in an orderly transaction between market participants on the measurement date. The fair value hierarchy established in ASC 820 generally requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs reflect the assumptions that market participants would use in pricing the asset or liability and are developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the entity’s own assumptions based on market data and the entity’s judgments about the assumptions that market participants would use in pricing the asset or liability and are to be developed based on the best information available in the circumstances.
Level 1—Assets and liabilities with unadjusted, quoted prices listed on active market exchanges. Inputs to the fair value measurement are observable inputs, such as quoted prices in active markets for identical assets or liabilities.
Level 2—Inputs to the fair value measurement are determined using prices for recently traded assets and liabilities with similar underlying terms, as well as direct or indirect observable inputs, such as interest rates and yield curves that are observable at commonly quoted intervals.
Level 3—Inputs to the fair value measurement are unobservable inputs, such as estimates, assumptions, and valuation techniques when little or no market data exists for the assets or liabilities.
 
11
In some circumstances, the inputs used to measure fair value might be categorized within different levels of the fair value hierarchy. In those instances, the fair value measurement is categorized in its entirety in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement.
Derivative Financial Instruments
The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives in accordance with ASC Topic 815, “Derivatives and Hedging”. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value on the issuance date and is
then re-valued at
each reporting date, with changes in the fair value reported in the statement of operations. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative liabilities are classified in the balance sheet as current
or non-current based
on whether or
not net-cash settlement
or conversion of the instrument could be required within 12 months of the balance sheet date.
The 33,950,000 warrants issued in connection with the Initial Public Offering and the Private Placement (including the 17,250,000 Public Warrants included in the Units and the 16,700,000 Private Placement Warrants) were recognized as derivative liabilities in accordance with ASC 815. Accordingly, the Company recognizes the warrant instruments as liabilities at fair value and adjust the instruments to fair value at each reporting period. The liabilities are subject
to re-measurement at
each balance sheet date until exercised. The determination of the fair value of the warrant liability may be subject to change as more current information becomes available and accordingly the actual results could differ significantly. Derivative warrant liabilities are classified
as non-current liabilities
as their liquidation is not reasonably expected to require the use of current assets or require the creation of current liabilities.
Ordinary Shares Subject to Possible Redemption
The Company accounts for its 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 the Company’s control) are classified as temporary equity. At all other times, ordinary shares are classified as shareholders’ equity. The Company’s Class A ordinary shares feature certain redemption rights that are considered to be outside of the Company’s control and subject to occurrence of uncertain future events.
Accordingly, as of September 30, 2023 and December 31, 2022, Class A ordinary shares subject to possible redemption are presented at redemption value as temporary equity, outside of the shareholders’ deficit section of the Company’s balance sheet.
Immediately upon the closing of the IPO, the Company recognized the accretion from initial book value to redemption amount. Increases or decreases in the carrying amount of redeemable ordinary shares are affected by charges against
additional paid-in capital
and accumulated deficit.
As of September 30, 2023 and December 31, 2022, the Class A ordinary shares subject to possible redemption reflected in the balance sheet are reconciled in the following table:
 
    
September 30, 2023
     
December 31, 2022
  
As of beginning of the period
    $ 356,976,644      $ 351,900,000  
Less:
                  
Redemptions as a result of Extraordinary General Meeting
      (161,606,370 )          
Plus:
                  
Extension Contribution
      2,450,000        —    
Remeasurement of carrying value to redemption value
      8,638,982        5,076,644  
    
 
 
     
 
 
  
Class A ordinary shares subject to possible redemption
    $ 206,459,256      $ 356,976,644  
    
 
 
     
 
 
  
 
12
Income taxes
The Company accounts for income taxes in accordance with the provisions of ASC Topic 740, “Income Taxes” (“ASC 740”). Under the asset and liability, method as required by this accounting standard, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the carrying amounts of assets and liabilities in the financial statements and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to the period when assets are realized or liabilities are settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statement of operations in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities.
ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts.
There were no unrecognized tax benefits as of September 30, 2023. The Company’s management determined that the Cayman Islands is the Company’s only major tax jurisdiction. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. As of September 30, 2023, there were no unrecognized tax benefits, and no amounts were accrued for the payment of interest and penalties.
There is currently no taxation imposed by the Government of the Cayman Islands. In accordance with Cayman income tax regulations, income taxes are not levied on the Company. Consequently, income taxes are not reflected in the Company’s financial statements. The Company’s management does not expect that the total amount of unrecognized tax benefits will materially change over the next twelve months.
Recent Accounting Pronouncements
In August 2020, the FASB issued ASU
No. 2020-06,
“Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity”. The update simplifies the accounting for convertible instruments by removing certain separation models in Subtopic
470-20,
Debt—Debt with Conversion and Other Options for convertible instruments and introducing other changes. As a result of ASU
No. 2020-06,
more convertible debt instruments will be accounted for as a single liability measured at amortized cost and more convertible preference shares will be accounted for as a single equity instrument measured at historical cost, as long as no features require bifurcation and recognition as derivatives. The amendments are effective for smaller reporting companies for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Company adopted ASU
No. 2020-06
upon its incorporation. The impact to the balance sheet, statements of operations and cash flows was not material.
Management does not believe that any other recently issued, but not effective, accounting standards, if currently adopted, would have a material effect on the Company’s financial statements.
Note 3— Initial Public Offering
On December 17, 2021 the Company sold 34,500,000 Units, which included 4,500,000 units from the underwriters full exercise of their over-allotment option, at a price of $10.00 per Unit, generating gross proceeds to the Company of $345,000,000. Each Unit consists of one Class A ordinary share and
one-half
of one redeemable warrant. Each whole Public Warrant entitles the holder to purchase one Class A ordinary share at a price of $11.50 per share, subject to adjustment (see Note 9).
Following the closing of the IPO on December 17, 2021 an aggregate of $351,900,000 ($10.20 per Unit) from the net proceeds of the sale of the Units in the IPO and the sale of the Private Placement Warrants was deposited into the Trust Account. The net proceeds deposited into the Trust Account will be invested in U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act, with a maturity of 185 days or less or in any open-ended investment company that holds itself out as a money market fund meeting the conditions of Rule
2a-7
of the Investment Company Act, as determined by the Company.
 
13
Transaction costs of the IPO amounted to $20,078,227 consisting of $6,900,000 of underwriting fee, $12,075,000 of deferred underwriting fee and $1,103,227 of other offering costs. Of the transaction costs, $19,224,170 was included in Additional
Paid-in
Capital and $854,057 was included in accumulated deficit.
Note 4— Potential Business Combination Agreement
On April 25, 2023, the Company entered into a business combination agreement with OpSec Holdings, a Cayman Islands exempted company with limited liability (“Pubco”), Opal Merger Sub I, a Cayman Islands exempted company incorporated with limited liability and wholly-owned subsidiary of Pubco (“Merger Sub I”), Opal Merger Sub II, a Cayman Islands exempted company incorporated with limited liability and wholly-owned Subsidiary of Pubco (“Merger Sub II”), Orca Holdings Limited, a Cayman Islands exempted company incorporated with limited liability (“OpSec”), Orca Midco Limited, a private limited company incorporated under the Laws of England and Wales (“Orca Midco”), Orca Bidco Limited, a private limited company incorporated under the Laws of England and Wales and a subsidiary of OpSec (“Orca”), Investcorp Technology Secondary Fund 2018, L.P., a Cayman Islands exempted limited partnership (“ITSF”), and Mill Reef Capital Fund ScS, a limited partnership (
société en commandite simple
) organized under the laws of Luxembourg (“Mill Reef”, and together with ITSF, the “OpSec Shareholders”), pursuant to which, among other things and subject to certain terms and conditions, (1) the OpSec Shareholders will contribute to Pubco all of the issued and outstanding ordinary shares of OpSec (the “OpSec Ordinary Shares”) in exchange for (a) ordinary shares of Pubco (“Pubco Ordinary Shares”) and (b) an aggregate amount in cash equal to $10,000,000 (collectively, the “Share Contribution” and with respect to the date it occurs, the “Share Contribution Closing”), (2) following the Share Contribution, OpSec will merge with and into Merger Sub I, as a result of which the separate corporate existence of OpSec shall cease and Merger Sub I shall continue as the surviving company (the “First Merger”), and (3) following the First Merger, the Company will merge with and into Merger Sub II (the “Second Merger”), as a result of which (a) the separate corporate existence of Merger Sub II shall cease and the Company shall continue as the surviving company, (b) the issued and outstanding Class A ordinary shares immediately prior to the effective time of the Second Merger (the “Second Merger Effective Time”) shall be exchanged for Pubco Ordinary Shares concurrently with the Second Merger, (c) the issued and outstanding Class B ordinary shares immediately prior to the Second Merger Effective Time shall be transferred to Pubco in exchange for Pubco Ordinary Shares and (d) the warrants of the Company outstanding immediately prior to the Second Merger Effective Time shall cease to represent a right to acquire the number of Class A ordinary shares set forth in such warrant and will instead be assumed by Pubco and automatically converted into warrants issued by Pubco (“Pubco Warrants”) to acquire an equal number of Pubco Ordinary Shares.
Following consummation of the transactions, the Company will be a wholly-owned subsidiary of Pubco and OpSec will be a wholly-owned subsidiary of Pubco. OpSec will hold approximately 97% of the issued and outstanding equity of its underlying operating subsidiaries. The Transactions are expected to close in the second half of 2023, subject to customary closing conditions, including the required approval by the shareholders of the Company. Other than pursuant to the terms and conditions set forth in the Backstop Agreement, there are no other financial closing conditions of the Transactions that would preclude closing once shareholder approval is obtained.
Each public unit of the Company outstanding immediately prior to the Second Merger Effective Time shall be automatically detached and the holder thereof shall be deemed to hold one Class A ordinary share
and one-half of
a warrant, which underlying securities shall be converted as set forth below and in accordance with the terms and conditions of the Business Combination Agreement.
At the Second Merger Effective Time, by virtue of the Second Merger and without any further action required on the part of any Party or the holders of securities of the Company or Merger Sub II:
 
  (1)
Class
 A ordinary shares
: Each Class A ordinary share issued and outstanding immediately prior to the Second Merger Effective Time (after giving effect to redemptions) shall be exchanged for one Pubco Ordinary Share.
 
  (2)
Warrants
: Each warrant outstanding immediately prior to the Second Merger Effective Time shall cease to represent a right to acquire the number of Class A ordinary shares set forth in such warrant and will be exchanged for a warrant to acquire one Pubco Ordinary Share. Each of the Pubco Warrants shall have, and be subject to, substantially the same terms and conditions set forth in the Company public warrants.
Concurrently with the Second Merger and after giving effect to the Share Cancellation described below, the Sponsor and certain shareholders of the Company (together with the Sponsor, the “Sponsor Members”) will sell and transfer to Pubco, and Pubco will purchase, the outstanding Class B ordinary shares in exchange for an equal number of Pubco Ordinary Shares and immediately after the Second Merger Effective Time each such Class B ordinary share will be converted into a Class A ordinary share.
 
14
In connection with the Share Contribution, the OpSec Shareholders will receive, in aggregate, (1) 23,577,550 Pubco Ordinary Shares, (2) an aggregate amount in cash equal to $10,000,000 and (3) the right to receive in aggregate an additional 1,277,550 Pubco Ordinary Shares upon the satisfaction of either of the following conditions (each, “Triggering Event”):
 
  (1)
if at any time from the Second Merger Effective Time through the date that is the tenth anniversary of the Second Merger Effective Time the volume-weighted average price of Pubco Ordinary Shares is greater than or equal to $12.00 over any 20 trading days within any 30 trading day period; and
 
  (2)
if at any time from the Second Merger Effective Time through the date that is the tenth anniversary of the Second Merger Effective Time there is a change of control of Pubco.
In connection with the Business Combination Agreement, the Company entered into the following agreements:
Backstop Agreement:
On April 25, 2023, concurrently with the execution of the Business Combination Agreement, the Sponsor, the Company, OpSec and Pubco entered into a backstop agreement (the “Backstop Agreement”), pursuant to which, on the terms and subject to the conditions set forth therein, the Sponsor has committed to purchase, prior to the Second Merger Closing, equity securities of Pubco, in a private placement, for an aggregate purchase price not to exceed $50 million, to backstop certain redemptions by Shareholders of the Company.
Insider Letter Amendment:
On April 25, 2023, concurrently with the execution of the Business Combination Agreement, the Company and the Sponsor Members have entered into an amendment to that certain Letter Agreement, dated as of December 14, 2021, by and among the Company and the Sponsor Members (the “Insider Letter”), pursuant to which, among other things, the Insider Letter was amended to reduce period of time during which the Sponsor Members have agreed not to transfer their Pubco Ordinary Shares issued in respect of the exchange of their Class B ordinary shares.
Sponsor Support Agreement:
On April 25, 2023, concurrently with the execution of the Business Combination Agreement, the Sponsor Members, Pubco and the Company have entered into a sponsor support agreement (the “Sponsor Support Agreement”), pursuant to which, among other things, (1) each Sponsor Member agreed (a) to vote all ordinary shares of the Company held by such Sponsor Member in favor of the Business Combination Agreement and the Transactions, (b) 50% of the Pubco Ordinary Shares held by such Sponsor Member as of immediately following the Second Merger Effective Time and after giving effect to the Share Cancellation (as defined below) shall be placed in escrow pursuant to an escrow agreement to be mutually agreed upon, by and among the Sponsor Members, Pubco and a mutually agreed upon escrow agent (the “Sponsor Earnout Shares”) and (c) to abstain from exercising any redemption rights in connection with the redemption of any Class A ordinary shares, and (2) the Sponsor further agreed to (a) along with certain other Sponsor Members, surrender for nil consideration and cancel immediately prior to the Share Contribution, but subject to the consummation of the Second Merger, in aggregate, 2,555,100 Class B ordinary shares held by such Sponsor Member as of immediately prior to the Share Contribution (the “Share Cancellation”), (b) transfer to the OpSec Shareholders immediately following the Share Contribution, but subject to the consummation of the Second Merger, 2,050,000 Warrants held by the Sponsor and (c) reimburse the Company for expenses in excess of $20,000,000, unless such excess expenses have otherwise been approved in writing by OpSec, in each case, on the terms and subject to the conditions set forth in the Sponsor Support Agreement.
The Sponsor Earnout Shares shall be released from escrow pursuant to such escrow agreement and delivered to such Sponsor Member upon the occurrence of a Triggering Event.
In connection with the Closing, the Company will enter into, among others, the following agreements:
Lock-Up
Agreement:
At the Share Contribution Closing, the OpSec Shareholders and Pubco shall enter into a
lock-up
agreement, pursuant to which, the OpSec Shareholders agree, subject to customary exceptions, not to transfer their Pubco Ordinary Shares during the period commencing on the date of the Share Contribution Closing and ending on the earlier of (1) the date that is nine months after the Share Contribution Closing and (2) the date on which Pubco undergoes a change of control.
Registration Rights Agreement:
In connection with the Transactions, at the Second Merger Closing, and subject to the consummation thereof, (1) the Registration Rights Agreement, dated December 14, 2021, by and among the Company and the Sponsor Members, shall be terminated and (2) Pubco, the OpSec Shareholders and the Sponsor Members shall enter into a registration rights agreement, pursuant to which, among other things, the OpSec Shareholders and the Sponsor Members shall be granted customary registration rights, on the terms and subject to the conditions set forth therein.
Warrant Assignment, Assumption and Amendment:
In connection with the Transactions, at or prior to the Second Merger Effective Time, the Company, Pubco and Continental will enter into a warrant assignment, assumption and amendment agreement, which amends that certain Warrant Agreement, dated December 14, 2021, by and between the Company and Continental, pursuant to which, among other things, (1) the Company will assign to Pubco, and Pubco will assume, all of the Company’s right, title and interest in and to the Warrant Agreement and (2) each warrant shall be modified to no longer entitle the holder thereof to purchase Class A ordinary shares and instead acquire an equal number of Pubco Ordinary Shares.
 
15
Note 5—Private Placement Warrants
Simultaneously with consummation of the IPO, the Sponsor purchased an aggregate of 16,700,000 Private Placement Warrants at a price of $1.00 per Private Placement Warrant ($16,700,000 in the aggregate). Each whole Private Placement Warrant is exercisable for one Class A ordinary share at a price of $11.50 per share. A portion of the proceeds from the sale of the Private Placement Warrants to the Sponsor were added to the proceeds from the IPO to be held in the Trust Account. If the Company does not complete a Business Combination within the Extension Period, the proceeds from the sale of the Private Placement Warrants held in the Trust Account will be used to fund the redemption of the Public Shares (subject to the requirements of applicable law), and the Private Placement Warrants will expire worthless.
Note 6—Related Party Transactions
Founder Shares
On April 1, 2021, the Sponsor purchased 8,625,000 shares of the Company’s Class B ordinary shares (the “Founder Shares”) for an aggregate purchase price of $25,000. On November 3, 2021, the Sponsor transferred 718,750 Founder Shares to Baroness Ruby McGregor-Smith, 479,167 Founder Shares to Peter McKellar, and 30,000 Founder Shares to each of Pam Jackson, Laurence Ponchaut and Adah Almutairi, at approximately $0.12 per share. This resulted in a benefit to the Company from the excess fair value of shares issued over the nominal purchase price. The excess fair value of the Founder Shares over their nominal purchase price is estimated to be $5,292,600 and will be recorded as compensation expense upon closing of the Business Combination.
The Sponsor and the Company’s directors and executive officers have agreed, subject to certain limited exceptions, not to transfer, assign or sell any of the Founder Shares until the earlier of (A) one year after the completion of a Business Combination and (B) subsequent to a Business Combination, (x) if the last reported sale price of the Class A ordinary share 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 120 days after a Business Combination, or (y) if the Company consummates a transaction after the initial Business Combination which results in shareholders having the right to exchange their shares for cash, securities or other property.
Related Party Loans
In order to fund working capital deficiencies or finance transaction costs in connection with a Business Combination, the Sponsor or an affiliate of the Sponsor may, but is not obligated to, loan the Company funds as may be required (“Working Capital Loans”). If the Company completes a Business Combination, the Company may repay the Working Capital Loans out of the proceeds of the Trust Account released to the Company. In the event that a Business Combination does not close, the Company 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. At the lender’s discretion, up to $2,000,000 of such Working Capital Loans may be convertible into warrants of the post-Business Combination entity at a price of $1.00 per warrant. The terms of the warrants would be identical to the terms of the Private Placement Warrants.
On March 7, 2023, the Company entered into
a non-interest bearing
convertible unsecured loan in the principal amount of up to $2,000,000 from one of the Sponsor’s affiliates to provide the Company with additional working capital and to fund the Extension Contributions. The Loan constitutes a Working Capital Loan as defined above. The portion of the Loan used to provide the Company with additional working capital will not be deposited into the Trust Account. If the Company does not consummate an initial business combination during the Extension Period, the Loan will be repaid only from funds held outside of the Trust Account or will be forfeited, eliminated or otherwise forgiven. The Loan is convertible into private placement warrants of the post-business combination entity at a price of $1.00 per warrant at the option of the lender. Such warrants would be identical to the private placement warrants. The conversion option represents an embedded derivative under ASC
815-15,
“Embedded Derivatives.” The Company has determined that based on the valuation of its Private Placement Warrants and the fact that a Business Combination is not considered probable until such time as it is consummated, the value of this conversion option is de minimis.
On July 6, 2023, the Company entered into
a non-interest bearing
unsecured loan in the principal amount of up to $1,700,000 from the Sponsor to fund monthly contributions into the Trust Account until the earlier of a completion of the Business Combination or December 17, 2023. The portion of the Loan used to provide the Company with additional working capital will not be deposited into the Trust Account.
The Loan bears no interest and shall be due and payable on the earlier of (i) the date on which the Borrower consummates the transaction or (ii) the date of that the winding up of the Borrower is effective. If the Company does not consummate an initial business combination by December 17, 2023, the Loan will be repaid only from funds held outside of the Trust Account or will be forfeited, eliminated or otherwise forgiven. If at any time the Board of Directors determines that the Company will not be able to consummate an initial business combination by December 17, 2023 and that the Company shall instead liquidate, the Sponsor’s obligation to continue to make contributions shall cease immediately upon such determination.
 
16
An initial amount of $350,000 was drawn down from the Loan on March 17, 2023 for the first Extension Contribution, and an additional $1,050,000 and $2,100,000 was drawn down in the three months and nine months ended September 30, 2023, respectively for three and six further Extension Contributions, respectively. In addition, $865,000 was drawn in order to fund the working capital requirements of the Company in three tranches of $250,000 in April 2023, $350,000 in May 2023 and $265,000 in July. The total amount outstanding under the Loans entered into on March 7, 2023 and July 6, 2023 described above and any other Working Capital Loans as of September 30, 2023 was $3,315,000. There was no amount outstanding under any Working Capital Loans as of December 31, 2022.
Note 7—Class A Ordinary Shares Subject to Possible Redemption
Class
 A Ordinary Shares—
The Company is authorized to issue 400,000,000 Class A ordinary shares with a par value of $0.0001 per share. Holders of Class A ordinary shares are entitled to one vote for each share. As of September 30, 2023 and December 31, 2022, there were no Class A ordinary shares issued or outstanding (excluding 19,005,667 and 34,500,000 shares subject to possible redemption, respectively).
On March 14, 2023 at the Extraordinary General Meeting, holders of Public Shares were afforded the opportunity to require the Company to redeem their public shares for their pro rate share of the Trust Account. 15,494,333 out of 34,500,000 Public Shares were redeemed at a redemption price of approximately $10.43 per share, leaving 19,005,667 Public Shares remaining outstanding.
Note 8—Shareholders’ Deficit
Preference Shares
—The Company is authorized to issue 1,000,000 preference shares, with a par value of $0.0001 per share, with such designations, voting and other rights and preferences as may be determined from time to time by the Company’s board of directors. As of September 30, 2023 and December 31, 2022, there were no preference shares issued or outstanding.
Class
 B Ordinary Shares
—The Company is authorized to issue 40,000,000 Class B ordinary shares with a par value of $0.0001 per share. As of September 30, 2023 and December 31, 2022, there were 8,625,000 shares of Class B ordinary shares issued and outstanding.
Holders of Ordinary Shares will vote together as a single class on all matters submitted to a vote of shareholders except as required by law.
Class B ordinary shares (the Founder Shares) will convert into Class A ordinary shares following the consummation of the initial Business Combination on a
one-for-one
basis, in accordance with the following schedule: (i) 50% on the trading day following the consummation of a Business Combination, and (ii) 50% if, post consummation of a Business Combination and prior to the ten year anniversary of the initial Business Combination, the volume weighted average trading price of the Class A ordinary shares for any 10 trading days within a 15 trading day period exceeds $12.00, on the trading day following such trading period, subject to adjustment. In the case that additional Class A ordinary shares, or equity-linked securities, are issued or deemed issued in excess of the amounts offered in the initial public offering and related to the closing of a Business Combination, the ratio at which Class B ordinary shares shall convert into Class A ordinary shares will be adjusted (unless the holders of a majority of the outstanding Class B ordinary shares agree to waive such adjustment with respect to any such issuance or deemed issuance) so that the number of Class A ordinary shares issuable upon conversion of all Class B ordinary shares will equal, in the aggregate, on an
as-converted
basis, 20% of the sum of the total number of all ordinary shares outstanding upon the completion of the initial public offering plus all Class A ordinary shares and equity-linked securities issued or deemed issued in connection with a Business Combination (excluding any shares or equity-linked securities issued, or to be issued, to any seller in a Business Combination).
Note 9—Warrant Liabilities
Public Warrants may only be exercised for a whole number of shares. No fractional warrants will be issued upon separation of the Units and only whole warrants will trade. The Public Warrants will become exercisable 30 days after the completion of a Business Combination.
The Company will not be obligated to deliver any Class A ordinary shares pursuant to the exercise of a warrant and will have no obligation to settle such warrant exercise unless a registration statement under the Securities Act with respect to Class A ordinary shares underlying the warrants is then effective and a prospectus relating thereto is current, subject to the Company satisfying its obligations with respect to registration, or a valid exemption from registration is available. No warrant will be exercisable, and the
 
17
Company will not be obligated to issue any Class A ordinary shares upon exercise of a warrant unless the Class A ordinary share issuable upon such warrant exercise has been registered, qualified or deemed to be exempt under the securities laws of the state of residence of the registered holder of the warrants.
The Company has agreed that as soon as practicable, but in no event later than 20 business days after the closing of a Business Combination, it will use its commercially reasonable efforts to file with the SEC a post-effective amendment to the registration statement of which this prospectus forms a part or a new registration statement for the registration, under the Securities Act, of Class A ordinary shares issuable upon exercise of the warrants, and the Company will use its commercially reasonable efforts to cause the same to become effective within 60 business days after the closing of a 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, as specified in the warrant agreement; provided that if the Class A ordinary share is 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, the Company may, at its 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 the Company so elects, the Company will not be required to file or maintain in effect a registration statement, but it will use its commercially reasonably efforts to register or qualify the shares under applicable blue sky laws to the extent an exemption is not available. If a registration statement covering Class A ordinary shares issuable upon exercise of the warrants is not effective by the 60th day after the closing of a Business Combination, warrant holders may, until such time as there is an effective registration statement and during any period when the Company will have failed to maintain an effective registration statement, exercise warrants on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act or another exemption, but the Company will use its commercially reasonably efforts to register or qualify the shares under applicable blue sky laws to the extent an exemption is not available.
Redemption of warrants when the price per Class
 ordinary share equals or exceeds $18.00.
Once the Public Warrants become exercisable, the Company may redeem the Public Warrants:
 
  •  
in whole and not in part;
 
  •  
at a price of $0.01 per warrant;
 
  •  
upon not less than 30 days’ prior written notice of redemption to each warrant holder; and
 
  •  
if, and only if, the closing price of the Class A ordinary shares equals or exceeds $18.00 per share for any 20 trading days within a
30-trading
day period ending three trading days before the Company sends the notice of redemption to the warrant holders.
If and when the Public Warrants become redeemable by the Company, it may exercise its redemption right even if the Company is unable to register or qualify the underlying securities for sale under all applicable state securities laws.
Redemption of warrants when the price per Class
 A ordinary share equals or exceeds $10.00.
Once the Public Warrants become exercisable, the Company may redeem the Public Warrants:
 
  •  
in whole and not in part;
 
  •  
at a price of $0.10 per warrant;
 
  •  
upon a minimum of 30 days’ prior written notice of redemption provided that holders will be able to exercise their warrants on a cashless basis prior to redemption and receive that number of shares based on the redemption date and the fair market value of the Class A ordinary shares;
 
  •  
if, and only if, the Reference Value (as defined above under “—Redemption of warrants when the price per Class A ordinary share equals or exceeds $18.00”) equals or exceeds $10.00 per share (as adjusted for share
sub-divisions,
share dividends, reorganizations, recapitalizations and the like); and
 
  •  
if the Reference Value is less than $18.00 per share (as adjusted for share
sub-divisions,
share dividends, reorganizations, recapitalizations and the like), the private placement warrants must also be concurrently called for redemption on the same terms as the outstanding public warrants, as described above.
In addition, if (x) the Company issues additional Class A ordinary shares or equity-linked securities for capital raising purposes in connection with the closing of the initial Business Combination at an issue price or effective issue price of less than $9.20 per Class A 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”), (y) the aggregate gross proceeds from such issuances represent more than 60% of the total equity proceeds, and interest thereon, available for the funding of a Business Combination on the date of the consummation of a Business Combination (net of redemptions), and (z) the volume weighted average
 
18
trading price of Class A ordinary shares during the 20 trading day period starting on the trading day prior to the day on which the Company consummates a Business Combination (such price, the “Market Value”) is below $9.20 per share, then the exercise price of the warrants will be adjusted (to the nearest cent) to be equal to 115% of the higher of the Market Value and the Newly Issued Price, and the $10.00 and $18.00 per share redemption trigger prices described adjacent to “Redemption of warrants when the price per Class A ordinary share equals or exceeds $10.00” and “Redemption of warrants when the price per Class A ordinary share equals or exceeds $18.00” will be adjusted (to the nearest cent) to be equal to 100% and 180% of the higher of the Market Value and the Newly Issued Price, respectively.
The Private Placement Warrants are identical to the Public Warrants underlying the Units sold in the IPO, except that the Private Placement Warrants and Class A ordinary shares issuable upon the exercise of the Private Placement Warrants will not be transferable, assignable or saleable until 30 days after the completion of a Business Combination, subject to certain limited exceptions. Additionally, the Private Placement Warrants will be exercisable for cash or on a cashless basis, at the holder’s option, and be
non-redeemable
so long as they are held by the initial purchasers or their permitted transferees (except for a number of Class A ordinary shares as described above under Redemption of warrants for Class A ordinary shares). If the Private Placement Warrants are held by someone other than the initial purchasers or their permitted transferees, the Private Placement Warrants will be redeemable by the Company in all redemption scenarios and exercisable by such holders on the same basis as the Public Warrants.
The Company accounts for the 33,950,000 warrants issued in connection with the IPO (including 17,250,000 Public Warrants and 16,700,000 Private Placement Warrants) in accordance with the guidance contained in ASC
815-40.
Such guidance provides that because the warrants do not meet the criteria for equity treatment thereunder, each warrant must be recorded as a liability. The warrant agreement contains an Alternative Issuance provision that if less than 70% of the consideration receivable by the holders of the Class A ordinary shares in the Business Combination is payable in the form of equity in the successor entity, and if the holders of the warrants properly exercises the warrants within thirty days following the public disclosure of the consummation of Business Combination by the Company, the warrant price shall be reduced by an amount equal to the difference.
Note 10—Commitments & Contingencies
Registration Rights
The holders of the Founder Shares and Private Placement Warrants (and any Class A ordinary shares issuable upon the exercise of the Private Placement Warrants and warrants that may be issued upon conversion of the Working Capital Loans and upon conversion of the Founder Shares) will be entitled to registration rights pursuant to a registration rights and shareholder agreement to be signed prior to or on the effective date of the IPO, requiring the Company to register such securities for resale (in the case of the Founder Shares, only after conversion to Class A ordinary shares). The holders of these securities will be entitled to make up to three demands, excluding short form demands, that the Company register such securities. In addition, the holders will have certain “piggy-back” registration rights with respect to registration statements filed subsequent to the completion of a Business Combination. The Company will bear the expenses incurred in connection with the filing of any such registration statements.
Underwriting Agreement
The underwriters were granted the option to purchase up to 4,500,000 additional units at the IPO price of $10.00 within 45 days of the consummation of the IPO. The underwriters fully exercised this option at the time of the IPO. The underwriters earned a cash underwriting discount of $0.20 per Unit, or $6,900,000 in the aggregate, which was paid upon the closing of the IPO.
In addition, the underwriter will be entitled to a deferred fee of $0.35 per Unit, or $12,075,000 in the aggregate. The deferred fee will become payable to the underwriter from the amounts held in the Trust Account solely in the event that the Company completes a Business Combination, subject to the terms of the underwriting agreement.
Legal Fees
The Company has an agreement in place whereby if its legal counsel assists in the Business Combination efforts and the Business Combination is successful, it could receive up to $893,755 (the “Success Fee”). The Success Fee will only become due and payable in the event of a successful Business Combination. In accordance with ASC 805, Business Combinations, this fee will not be recorded until such time as a Business Combination is consummated.
Consulting Agreements
In April 2023, the Company entered into two agreements with each of the IPO underwriters, each to act as a capital markets advisor and as a placement agent in relation to the Business Combination. On June 9, 2023, the Company terminated the two engagement letters with one of the IPO underwriters, and such termination nullified the Company’s obligation to pay any fees under
 
19
such agreements. With respect to the other IPO underwriter, as compensation for their services, half of a placement fee of 3.0% of the gross proceeds of securities sold in the placement will be paid to the agent upon consummation of the placement (the “Placement Fee”) and $4,000,000 will be paid to the agent upon consummation of the Business Combination (the “Transaction Fee”). The Placement Fee and the Transaction fee will only become payable in the event the placement and the Business Combination are consummated, respectively, and as such nothing will be recorded until that time.
In June 2023, the Company entered into an agreement with a third-party consultant to provide advisory services in relation to the Business Combination. As compensation for those services, an advisory fee of $2,000,000 is payable in the event the transaction is consummated (the “Advisory Fee”). This fee will only become payable in the event the Business Combination is consummated and as such nothing will be recorded until that time.
Additionally, the agent and the consultant are eligible to be reimbursed in the aggregate up to $500,000 in expenses in the event the Business Combination is not consummated and $1,000,000 in the event it is consummated. As of September 30, 2023, approximately $1,161,000 has been incurred by the third parties. As the Business Combination is not yet considered probable, $500,000 of the approximately $1,161,000 is accrued in the Accounts Payable and Accrued Expenses line on the balance sheet.
Note 11—Recurring Fair Value Measurements
The following table sets forth by level within the fair value hierarchy the Company’s assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2023 and December 31, 2022:
 
As of September 30, 2023
   
(Level 1)
     
(Level 2)
     
(Level 3)
  
Assets
                           
Marketable securities held in Trust Account
    $ 206,459,256      $ —       $ —   
Liabilities
                           
Public Warrants
      5,135,000        —         —   
Private Placement Warrants
      —         —         4,974,000  
    
 
 
     
 
 
     
 
 
  
Total
    $ 211,594,256      $ —       $ 4,974,000  
       
As of December 31, 2022
   
(Level 1)
     
(Level 2)
     
(Level 3)
  
Assets
                           
Marketable securities held in Trust Account
    $ 356,976,644      $ —       $ —   
Liabilities
                           
Public Warrants
      776,250        —         —   
Private Placement Warrants
      —         —         776,000  
    
 
 
     
 
 
     
 
 
  
Total
    $ 357,752,894      $ —       $ 776,000  
 
20
Marketable Securities held in Trust Account
As of September 30, 2023, the assets held in the Trust Account were held in a money market mutual fund. During the period from March 22, 2021 (inception) through September 30, 2023, the Company did not withdraw any of the interest income from the Trust Account to pay its tax obligations.
The composition of the Company’s fair value of held to maturity securities on September 30, 2023 and December 31, 2022 is as follows:
 
    
Fair Value as of

September 30,
2023
     
Fair Value as of

December 31,

2022
  
Money Market Mutual Fund
    $ 206,459,256      $ 356,976,644  
    
 
 
     
 
 
  
    
$
206,459,256
 
   
$
356,976,644
 
    
 
 
     
 
 
  
Warrant Liabilities
As of September 30, 2023, the Company’s warrant liabilities were valued at
 
$
10,109,000. Under the guidance in ASC
815-40,
the Public Warrants and the Private Placement Warrants do not meet the criteria for equity treatment. As such, the Public Warrants and the Private Warrants must be recorded on the balance sheet at fair value. This valuation is subject to
re-measurement
at each balance sheet date. With each
re-measurement,
the valuations will be adjusted to fair value, with the change in fair value recognized in the Company’s statement of operations.
The Company’s warrant liability is based on a valuation model utilizing management judgment and pricing inputs from observable and unobservable markets with less volume and transaction frequency than active markets. Significant deviations from these estimates and inputs could result in a material change in fair value. The fair value of the warrant liabilities is classified within Level 3 of the fair value hierarchy.
The Company established the initial fair value for the warrants on December 17, 2021, the date of the consummation of the Company’s IPO. The fair value of the Public Warrants and the Private Placement Warrants were measured using a Monte Carlo simulation model. The estimated fair value of the Public Warrants and the Private Placement Warrants were determined using Level 3 inputs. The Monte Carlo simulation utilizes certain known inputs such as the Company’s stock price, the warrant exercise price, the time to expiration and the fact that there is a call condition. The risk-free interest rate is based on the U.S. Treasury curve. The expected life of the instruments are assumed to be equivalent to their remaining contractual term plus the amount of time assumed to consummate a Business Combination. Additionally, inherent in a Monte Carlo simulation model is an assumption related to the unknown expected share-price volatility. The Company estimates the implied volatility of its warrants based on the volatility required to produce a model price equal to the market price for the Company’s Public Warrants.
The following table presents a summary of the changes in the fair value of the Warrants liabilities classified as Level 3, measured on a recurring basis.

 
 
  
Private Warrant

Liability
 
Fair Value as of December 31, 2022
  
 
776,000
 
Change in fair value
  
 
1,064,340
 
  
 
 
 
Fair value as of March 31, 2023
  
$
1,840,340
 
Change in fair value
  
 
1,617,660
 
  
 
 
 
Fair value as of June 30, 2023
  
$
3,458,000
 
Change in fair value
  
 
1,516,000
 
Fair value as of September 30, 2023
  
$
4,974,000
 

21
The following table provides the significant inputs into the Monte Carlo method for the fair value of the Public and Private Warrants:
 
Input
   
9/30/2023
    
12/31/2022
  
Share price
    $ 10.88     $ 10.30  
Exercise price
    $ 11.50     $ 11.50  
Risk-free rate of interest
      4.60 %      3.99 % 
Volatility
      60.02 %      10.70 % 
Term (in years)
      5.31       5.29  
Dividend yield
      —   %      —   % 
Transfers to/from Levels 1, 2 and 3 are recognized at the end of the reporting period in which a change in valuation technique or methodology occurs. The Public Warrants underlying the units sold in the IPO began separately trading on February 3, 2022 and as such were reclassified to Level 1 in the quarter ended March 31, 2022. There were no other transfers in or out of Level 3 from other levels in the fair value hierarchy for the three months ended September 30, 2023.
Note 12—Subsequent Events
The Company evaluated subsequent events and transactions that occurred after the balance sheet date up to the date that the financial statements were issued. Based on this review, the Company did not identify any subsequent events, other than those detailed below, that would have required adjustment or disclosure in the financial statement.
In October the Company drew down an additional $385,000 comprised of $350,000 for the October Extension payment and $35,000 for working capital purposes. This left the total $3,700,000 from the Loans entered into on March 7, 2023 and July 6, 2023 to the Company fully drawn.
 
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

All statements other than statements of historical fact included in this Report including, without limitation, statements under “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” regarding the Company’s financial position, business strategy and the plans and objectives of management for future operations, are forward-looking statements. When used in this Report, words such as “anticipate,” “believe,” “estimate,” “expect,” “intend” and similar expressions, as they relate to us or the Company’s management, identify forward-looking statements. Such forward-looking statements are based on the beliefs of management, as well as assumptions made by, and information currently available to, the Company’s management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors detailed in our filings with the SEC.

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the financial statements and the notes thereto contained elsewhere in this Report. Certain information contained in the discussion and analysis set forth below includes forward-looking statements that involve risks and uncertainties.

Overview

We are a blank check company incorporated on March 22, 2021 as a Cayman Islands exempted company and incorporated for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses or assets. We have signed a Business Combination Agreement with our selected Business Combination target as of April 25, 2023. We intend to effectuate our initial business combination using cash from the proceeds of our IPO and the private placement of the private placement warrants, the proceeds of the sale of our shares in connection with our initial business combination, shares issued to the owners of the target, debt issued to bank or other lenders or the owners of the target, or a combination of the foregoing.

The issuance of additional shares in connection with a business combination to the owners of the target or other investors:

 

  •  

may significantly dilute the equity interest of investors in our IPO, 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 our 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; and

 

  •  

may adversely affect prevailing market prices for our units, Class A ordinary shares and/or warrants. Similarly, if we issue debt securities or otherwise incur significant debt to bank or other lenders or the owners of a target, it could result in:

 

  •  

default and foreclosure on our assets if our operating revenues after an initial business combination are insufficient to repay our debt obligations;

 

  •  

acceleration of our obligations to repay the indebtedness even if we make all principal and interest payments when due if we breach certain covenants that require the maintenance of certain financial ratios or reserves without a waiver or renegotiation of that covenant;

 

  •  

our immediate payment of all principal and accrued interest, if any, if the debt security is payable on demand;

 

  •  

our inability to obtain necessary additional financing if the debt security contains covenants restricting our ability to obtain such financing while the debt security 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;

 

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  •  

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.

Recent Developments

Business Combination Agreement

On April 25, 2023, the Company entered into a business combination agreement with Orca Holdings Limited, a Cayman Islands exempted company incorporated with limited liability (“OpSec”). Capitalized terms used in this Form 10-Q but not otherwise defined herein have the meanings given to them in the Business Combination Agreement. Upon the terms and subject to the conditions of the Business Combination Agreement and in accordance with applicable law, as soon as practicable following the date of the Business Combination Agreement, the Company will form, or cause to be formed, Pubco, Merger Sub I and Merger Sub II.

In connection with the transactions contemplated by the Business Combination Agreement, (1) the OpSec Shareholders will contribute to Pubco all of the issued and outstanding OpSec Ordinary Shares in exchange for (a) Pubco Ordinary Shares and (b) an aggregate amount in cash equal to $10,000,000, (2) following the Share Contribution, OpSec will merge with and into Merger Sub I, as a result of which the separate corporate existence of OpSec shall cease and Merger Sub I shall continue as the surviving company, and (3) following the First Merger, the Company will merge with and into Merger Sub II, as a result of which (a) the separate corporate existence of Merger Sub II shall cease and the Company shall continue as the surviving company, (b) the issued and outstanding Class A ordinary shares immediately prior to the effective time of the Second Merger shall be exchanged for Pubco Ordinary Shares concurrently with the Second Merger, (c) the issued and outstanding Class B ordinary shares immediately prior to the Second Merger Effective Time shall be transferred to Pubco in exchange for Pubco Ordinary Shares and (d) the warrants of the Company outstanding immediately prior to the Second Merger Effective Time shall cease to represent a right to acquire the number of Class A ordinary shares set forth in such warrant and will instead be assumed by Pubco and automatically converted into Pubco Warrants to acquire an equal number of Pubco Ordinary Shares.

Following consummation of the transactions, the Company will be a wholly-owned subsidiary of Pubco and OpSec will be a wholly-owned subsidiary of Pubco. OpSec will hold approximately 97% of the issued and outstanding equity of its underlying operating subsidiaries. The Transactions are expected to close in the second half of 2023, subject to customary closing conditions, including the required approval by the shareholders of the Company.

For additional information regarding the Business Combination Agreement, see the Company’s Current Report on Form 8-K filed with the SEC on April 26, 2023.

Results of Operations and Known Trends or Future Events

We have neither engaged in any operations nor generated any revenues to date. Our only activities since inception have been organizational activities, activities necessary to prepare and complete for our IPO, and since our IPO, activities related to searching for a target for our Business Combination. Following our IPO, we will not generate any operating revenues until after completion of our initial business combination. We generate non-operating income in the form of interest income on cash and cash equivalents.

For the three months ended September 30, 2023, we had a net loss of $1,707,201, which consisted of a $3,292,000 loss on the change in fair value of warrant liabilities, $1,058,457 in formation and operating costs and a loss on exchange rate of $4,595, offset by $2,647,851 in interest income on Marketable Securities held in Trust Account. For the nine months ended September 30, 2023, we had a net loss of $7,576,235, which consisted of a $8,556,750 loss on the fair value of warrant liabilities, $7,653,872 in formation and operating costs and a loss on exchange rate of $4,595, offset by $8,638,982 in interest income on Marketable Securities held in Trust Account. The high level of operating costs in the three month and nine month periods reflects due diligence work related to evaluating the business combination ahead of the announcement in April 2023, legal expenses related to finalizing the Business Combination Agreement and additional legal expenses related to the business combination in the period since the Business Combination Agreement was signed.

For the three months ended September 30, 2022, we had net income of $2,794,665, which consisted of a $2,067,000 gain on the fair value of warrant liabilities, and $1,588,336 in interest income on Marketable Securities held in Trust Account, offset by $860,671 in formation and operating costs. For the nine months ended September 30, 2022, we had net income of $23,929,062, which consisted of a $23,443,500 gain on the fair value of warrant liabilities, $2,098,957 in interest income on Marketable Securities held in Trust Account and $9,239 in foreign exchange gain, offset by $1,622,634 in formation and operating costs.

 

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Liquidity and Capital Resources

Our liquidity needs have been satisfied through receipt of $25,000 from the sale of the founder shares to our sponsor to cover for certain expenses on our behalf in exchange for the issuance of the 8,625,000 founder shares, and the Loan with our Sponsor of $3,315,000.

For the nine months ended September 30, 2023, we utilized $1,312,957 in operating activities, which was largely driven by an increase of $5,869,231 in accounts payable and accrued expenses, $476,279 in Prepaid and other as well as a $8,556,750 change in fair value of our warrant liabilities, offset by $8,638,982 in interest earned on our marketable securities held in the Trust Account.

For the nine months ended September 30, 2023, we were provided $159,156,370 from our investing activities, which was primarily driven by $161,606,370 redemptions as a result of our extraordinary shareholder meeting offset by $2,450,000 in Extension Contributions.

For the nine months ended September 30, 2023, we utilized $158,291,370 in our financing activities, which was the result of the $161,606,370 payout of redemptions by our shareholders offset by $3,315,000 in proceeds from our promissory note.

The net proceeds from the sale of the units in our IPO and the sale of the private placement warrants for an aggregate purchase price of $16,700,000, after deducting offering expenses of $1,103,227 and underwriting commissions of $6,900,000 (excluding deferred underwriting commissions of $12,075,000), was $351,900,000, which is held in the Trust Account and includes the deferred underwriting commissions described above. The proceeds held in the Trust Account is invested only in U.S. government treasury obligations with a maturity of 185 days or less or in money market funds meeting certain conditions under Rule 2a-7 under the Investment Company Act which invest only in direct U.S. government treasury obligations. The remaining $31,052 is not held in the Trust Account.

We intend to use substantially all of the funds held in the Trust Account, including any amounts representing interest earned on the Trust Account (excluding deferred underwriting commissions) net of any redemptions, to complete our initial business combination. We may withdraw interest to pay our taxes, if any. Our annual income tax obligations will depend on the amount of interest and other income earned on the amounts held in the Trust Account. To the extent that our equity or debt is used, in whole or in part, as consideration to complete our initial business combination, the remaining proceeds held in the Trust Account will be used as working capital to finance the operations of the target business or businesses, make other acquisitions and pursue our growth strategies.

Prior to the completion of our initial business combination, as of September 30, 2023, we have available to us approximately $31,052 of proceeds held outside the Trust Account, as well as any funds from loans from our sponsor, its affiliates or members of our management team. We will use these funds to primarily 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, and structure, negotiate and complete a business combination.

If our estimates of the costs of identifying a target business, undertaking in-depth due diligence and negotiating an initial business combination are less than the actual amount necessary to do so, we may have insufficient funds available to operate our business prior to our initial business combination. In order to fund working capital deficiencies or finance transaction costs in connection with an intended initial business combination, our sponsor or an affiliate of our sponsor or certain of our officers and directors may, but are not obligated to, loan us funds as may be required. If we complete our initial business combination, we would 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 private placement warrants of the post business combination entity at a price of $1.00 per warrant at the option of the lender. Such 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 or an affiliate of our sponsor as we do not believe third parties will be willing to loan such funds and provide a waiver against any and all rights to seek access to funds in our Trust Account.

On March 7, 2023, we entered into a non-interest bearing convertible unsecured loan (the “Loan”) in the principal amount of up to $2,000,000 from one of our Sponsor’s affiliates to provide us with additional working capital and to fund the initial Contributions described below. The portion of the Loan used to provide us with additional working capital will not be deposited into our Trust Account. If we do not consummate an initial business combination by December 17, 2023 the Loan will be repaid only from funds held outside of the Trust Account or will be forfeited, eliminated or otherwise forgiven. The Loan is convertible into private placement warrants of the post-business combination entity at a price of $1.00 per warrant at the option of the lender. Such warrants

 

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would be identical to the private placement warrants. The conversion option represents an embedded derivative under ASC 815-15, “Embedded Derivatives.” The Company has determined that based on the valuation of its Private Placement Warrants and the fact that a Business Combination is not considered probable until such time as it is consummated, the value of this conversion option is de minimis.

On July 6, 2023, the Company entered into a non-interest bearing unsecured loan in the principal amount of up to $1,700,000 from the Sponsor to fund monthly contributions into the Trust Account until the earlier of a completion of the Business Combination or December 17, 2023. The portion of the Loan used to provide the Company with additional working capital will not be deposited into the Trust Account.

The total amount outstanding under the Loans entered into on March 7, 2023 and July 6, 2023 and any other Working Capital Loans as of September 30, 2023 was 3,315,000. During the month of October, we drew down an additional $385,000 which left our available $3,700,000 in related party notes fully drawn. There was no amount outstanding under any Working Capital Loans as of December 31, 2022.

On March 14, 2023 we convened an Extraordinary General Meeting at which our Sponsor agreed, by making monthly advancements on the Loan, to contribute (each such contribution, a “Contribution”) into the Trust Account the lesser of (x) an aggregate of $350,000 or (y) $0.03 per share for each public share that was not redeemed at the Extraordinary General Meeting for each monthly period (commencing on March 17, 2023 and ending on the 17th day of each subsequent month), or prior thereof, until the earlier of the completion of the initial business combination and the end of the Combination Period.

We expect our future primary liquidity requirements during the period until the business combination to include legal, accounting, due diligence, travel and other expenses associated with structuring, negotiating and documenting successful business combinations; legal and accounting fees related to regulatory reporting requirements; Nasdaq and other regulatory fees; consulting, travel and miscellaneous expenses incurred during the search for initial business combination target; and general working capital that will be used for miscellaneous expenses and reserves.

In addition, we could use a portion of the funds not being placed in trust to pay commitment fees for financing, fees to consultants to assist us with our search for a target business or as a down payment or to fund a “no-shop” provision (a provision designed to keep target businesses from “shopping” around for transactions with other companies or investors on terms more favorable to such target businesses) with respect to a particular proposed business combination, although we do not have any current intention to do so. If we entered into an agreement where we paid for the right to receive exclusivity from a target business, the amount that would be used as a down payment or to fund a “no-shop” provision would be determined based on the terms of the specific business combination and the amount of our available funds at the time. Our forfeiture of such funds (whether as a result of our breach or otherwise) could result in our not having sufficient funds to continue searching for, or conducting due diligence with respect to, prospective target businesses.

If we are not able to consummate a business combination before the end of the business combination period, we will commence an automatic winding up, dissolution and liquidation. Management has determined that the automatic liquidation, should a business combination not occur, and potential subsequent dissolution also raises substantial doubt about our ability to continue as a going concern. While management intends to complete a business combination, it is uncertain whether we will be able to do so. No adjustments have been made to the carrying amounts of assets or liabilities.

These conditions, including the working capital deficit and proximity to the end of our Extension Period, raise substantial doubt about our ability to continue as a going concern for a period of time within one year after the date that the financial statements are issued. There is no assurance that our plan to consummate a business combination will be successful within the business combination period. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Controls and Procedures

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

 

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We expect to assess the internal controls of our target business or businesses prior to the completion of our initial business combination and, if necessary, to implement and test additional controls as we may determine are necessary in order to state that we maintain an effective system of internal controls. A target business may not be in compliance with the provisions of the Sarbanes-Oxley Act regarding the adequacy of internal controls. Many small and mid-sized target businesses we may consider for our initial business combination may have internal controls that need improvement in areas such as:

 

  •  

staffing for financial, accounting and external reporting areas, including segregation of duties;

 

  •  

reconciliation of accounts;

 

  •  

proper recording of expenses and liabilities in the period to which they relate;

 

  •  

evidence of internal review and approval of accounting transactions;

 

  •  

documentation of processes, assumptions and conclusions underlying significant estimates; and

 

  •  

documentation of accounting policies and procedures.

Because it will take time, management involvement and perhaps outside resources to determine what internal control improvements are necessary for us to meet regulatory requirements and market expectations for our operation of a target business, we may incur significant expenses in meeting our public reporting responsibilities, particularly in the areas of designing, enhancing, or remediating internal and disclosure controls. Doing so effectively may also take longer than we expect, thus increasing our exposure to financial fraud or erroneous financing reporting.

Off-Balance Sheet Arrangements

As of September 30, 2023, we did not have any off-balance sheet arrangements as defined in Item 303(a)(4)(ii) of Regulation S-K.

Commitments and Contractual Obligations

Registration Rights

The holders of the Founder Shares and Private Placement Warrants (and any Class A ordinary shares issuable upon the exercise of the Private Placement Warrants and warrants that may be issued upon conversion of the Working Capital Loans and upon conversion of the Founder Shares) will be entitled to registration rights pursuant to a registration rights and shareholder agreement to be signed prior to or on the effective date of the IPO, requiring the Company to register such securities for resale (in the case of the Founder Shares, only after conversion to Class A ordinary shares). The holders of these securities will be entitled to make up to three demands, excluding short form demands, that the Company register such securities. In addition, the holders will have certain “piggy-back” registration rights with respect to registration statements filed subsequent to the completion of a Business Combination. The Company will bear the expenses incurred in connection with the filing of any such registration statements.

Underwriting Agreement

The underwriter will be entitled to a deferred fee of $0.35 per Unit, or $12,075,000 in the aggregate. The deferred fee will become payable to the underwriter from the amounts held in the Trust Account solely in the event that the Company completes a Business Combination, subject to the terms of the underwriting agreement.

Consulting Agreements

In April 2023, the Company entered into two agreements with each of the IPO underwriters, each to act as a capital markets advisor and as a placement agent in relation to the Business Combination. On June 9, 2023, the Company terminated the two engagement letters with one of the IPO underwriters, and such termination nullified the Company’s obligation to pay any fees under such agreements. With respect to the other IPO underwriter, as compensation for their services, half of a placement fee of 3.0% of the gross proceeds of securities sold in the placement will be paid to the agent upon consummation of the placement (the “Placement Fee”) and $4,000,000 will be paid to the agent upon consummation of the Business Combination (the “Transaction Fee”). The Placement Fee and the Transaction fee will only become payable in the event the placement and the Business Combination are consummated, respectively, and as such nothing will be recorded until that time.

In June 2023, the Company entered into an agreement with a third-party consultant to provide advisory services in relation to the Business Combination. As compensation for those services, an advisory fee of $2,000,000 is payable in the event the transaction is consummated (the “Advisory Fee”). This fee will only become payable in the event the Business Combination is consummated and as such nothing will be recorded until that time.

Additionally, the agent and the consultant are eligible to be reimbursed in the aggregate up to $500,000 in expenses in the event the Business Combination is not consummated and $1,000,000 in the event it is consummated. As of September 30, 2023, approximately $1,161,000 has been incurred by the third parties. As the Business Combination is not yet considered probable, $500,000 of the approximately $1,161,000 is accrued in the Accounts Payable and Accrued Expenses line on the balance sheet.

 

27

Table of Contents

JOBS Act

The JOBS Act contains provisions that, among other things, relax certain reporting requirements for qualifying public companies. We will qualify as an “emerging growth company” and under the JOBS Act will be allowed to comply with new or revised accounting pronouncements based on the effective date for private (not publicly traded) companies. We are electing to delay the adoption of new or revised accounting standards, and as a result, we may not comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for non-emerging growth companies. As a result, our financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates.

Additionally, we are in the process of evaluating the benefits of relying on the other reduced reporting requirements provided by the JOBS Act. Subject to certain conditions set forth in the JOBS Act, if, as an “emerging growth company,” we choose to rely on such exemptions we may not be required to, among other things, (i) provide an independent registered public accounting firm’s attestation report on our system of internal controls over financial reporting pursuant to Section 404, (ii) provide all of the compensation disclosure that may be required of non-emerging growth public companies under the Dodd-Frank Wall Street Reform and Consumer Protection Act, (iii) comply with any requirement that may be adopted by the PCAOB regarding mandatory audit firm rotation or a supplement to the report of the independent registered public accounting firm providing additional information about the audit and the financial statements (auditor discussion and analysis), and (iv) disclose certain executive compensation related items such as the correlation between executive compensation and performance and comparisons of the CEO’s compensation to median employee compensation. These exemptions will apply for a period of five years following the completion of our IPO or until we are no longer an “emerging growth company,” whichever is earlier.

Critical Accounting Policies

Management’s discussion and analysis of our results of operations and liquidity and capital resources are based on our financial statements. We describe our significant accounting policies in Note 2 – Summary of Significant Accounting Policies, of the Notes to Financial Statements included in this report. Our financial statements have been prepared in accordance with U.S. GAAP. Certain of our accounting policies require that management apply significant judgments in defining the appropriate assumptions integral to financial estimates. On an ongoing basis, management reviews the accounting policies, assumptions, estimates and judgments to ensure that our financial statements are presented fairly and in accordance with U.S. GAAP. Judgments are based on historical experience, terms of existing contracts, industry trends and information available from outside sources, as appropriate. However, by their nature, judgments are subject to an inherent degree of uncertainty, and, therefore, actual results could differ from our estimates.

Recent Accounting Standards

In August 2020, the FASB issued ASU No. 2020-06, “Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity”. The update simplifies the accounting for convertible instruments by removing certain separation models in Subtopic 470-20, Debt-Debt with Conversion and Other Options for convertible instruments and introducing other changes. As a result of ASU No. 2020-06, more convertible debt instruments will be accounted for as a single liability measured at amortized cost and more convertible preference shares will be accounted for as a single equity instrument measured at historical cost, as long as no features require bifurcation and recognition as derivatives. The amendments are effective for smaller reporting companies for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Company adopted ASU No. 2020-06 upon its incorporation. The impact to the balance sheet, statements of operations and cash flows was not material.

We have considered all new accounting pronouncements and have concluded that there are no new pronouncements that may have a material impact on our results of operations, financial condition, or cash flows, based on the current information.

Factors That May Adversely Affect Our Results of Operations

Our results of operations and our ability to complete an initial business combination may be adversely affected by various factors that could cause economic uncertainty and volatility in the financial markets, many of which are beyond our control. Our business could be impacted by, among other things, downturns in the financial markets or in economic conditions, increases in oil prices, inflation, increases in interest rates, supply chain disruptions, declines in consumer confidence and spending, the ongoing effects of the COVID-19 pandemic, including resurgences and the emergence of new variants, and geopolitical instability, such as the military conflict in the Ukraine. We cannot at this time fully predict the likelihood of one or more of the above events, their duration or magnitude or the extent to which they may negatively impact our business and our ability to complete an initial business combination.

 

28

Table of Contents

Item 3. Quantitative and Qualitative Disclosures About Market Risk

As of September 30, 2023, we were not subject to any material market or interest rate risk. Following the consummation of our Initial Public Offering, the net proceeds of the Initial Public Offering and the Private Placement, including amounts in the Trust Account, were invested in U.S. government treasury obligations with a maturity of 185 days or less or in money market funds meeting certain conditions under Rule 2a-7 under the Investment Company Act. Due to the short-term nature of these investments, we believe there was no associated material exposure to interest rate risk.

We have not engaged in any hedging activities since our inception. We do not expect to engage in any hedging activities with respect to the market risk to which we are exposed.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures are designed with the objective of ensuring that information required to be disclosed in our reports filed under the Exchange Act, such as this quarterly report, is recorded, processed, summarized, and reported within the time period specified in the SEC’s rules and forms. Disclosure controls and procedures are also designed with the objective of ensuring that such information is accumulated and communicated to our management, including the chief executive officer and chief financial officer, as appropriate to allow timely decisions regarding required disclosure. Our principal executive officer and principal financial and accounting officer (our “Certifying Officers”) evaluated the effectiveness of our disclosure controls and procedures as of September 30, 2023, pursuant to Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Based upon that evaluation, our Certifying Officers concluded that, as of September 30, 2023, our disclosure controls and procedures were effective.

We do not expect that our disclosure controls and procedures will prevent all errors and all instances of fraud. Disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the disclosure controls and procedures are met. Further, the design of disclosure controls and procedures must reflect the fact that there are resource constraints, and the benefits must be considered relative to their costs. Because of the inherent limitations in all disclosure controls and procedures, no evaluation of disclosure controls and procedures can provide absolute assurance that we have detected all our control deficiencies and instances of fraud, if any. The design of disclosure controls and procedures also is based partly on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

Management’s Report on Internal Controls Over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act. Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on our evaluation under the framework in Internal Control-Integrated Framework (2013), our management concluded that our internal control over financial reporting was effective as of September 30, 2023.

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.

PART II-OTHER INFORMATION

Item 1. Legal Proceedings

None.

 

29

Table of Contents

Item 1A. Risk Factors

Factors that could cause our actual results to differ materially from those in this report include the risks described under the heading “Risk Factors” included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022, filed with the SEC on April 24, 2023 (the “2022 10-K”). Any of these factors could result in a significant or material adverse effect on our results of operations or financial condition. Additional risk factors not presently known to us or that we currently deem immaterial may also impair our business or results of operations. As of the date of this Report, there have been no material changes to the risk factors disclosed in the 2022 10-K. We may disclose changes to such risk factors or disclose additional risk factors from time to time in our future filings with the SEC.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

No underwriting discounts or commissions were paid with respect to such sales.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

Item 6. Exhibits

 

No.    Description of Exhibit
 31.1*    Certification of Chief Executive Officer pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
 31.2*    Certification of Chief Financial Officer pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
 32.1**    Certification of Chief 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 Chief 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    Inline XBRL Instance Document
101.SCH    Inline XBRL Taxonomy Extension Schema Document
101.CAL    Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF    Inline XBRL Taxonomy Extension Definitions Linkbase Document
101.LAB    Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE    Inline XBRL Taxonomy Extension Presentation Linkbase Document
104    Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

*

Filed herewith

**

Furnished herewith

 

30

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

   

INVESTCORP EUROPE ACQUISITION CORP I

Date: November 14, 2023     By:   /s/ Craig Sinfield-Hain
     

Name: Craig Sinfield-Hain

     

Title: Chief Financial Officer

 

31

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO RULE 13a-14(a) OR 15d-14(a)

UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Baroness Ruby McGregor-Smith, certify that:

 

1.

I have reviewed this Quarterly Report on Form 10-Q for the quarter ended September 30, 2023 of Investcorp Europe Acquisition Corp I.

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report.

 

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report.

 

4.

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

  a.

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

  b.

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  c.

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

  d.

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

5.

The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

  a.

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

  b.

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: November 14, 2023     By:   /s/ Ruby McGregor-Smith
      Baroness Ruby McGregor-Smith
      Chief Executive Officer
      (Principal Executive Officer)

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO RULE 13a-14(a) OR 15d-14(a)

UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Craig Sinfield-Hain, certify that:

 

1.

I have reviewed this Quarterly Report on Form 10-Q for the quarter ended September 30, 2023 of Investcorp Europe Acquisition Corp I.

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report.

 

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report.

 

4.

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

  a.

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

  b.

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  c.

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

  d.

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

5.

The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

  a.

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

  b.

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: November 14, 2023     By:   /s/ Craig Sinfield-Hain
      Craig Sinfield-Hain
      Chief Financial Officer
      (Principal Financial and Accounting Officer)

Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Investcorp Europe Acquisition Corp I (the “Company”) on Form 10-Q for the quarter ended September 30, 2023, as filed with the Securities and Exchange Commission (the “Report”), I, Baroness Ruby McGregor-Smith, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as added by § 906 of the Sarbanes-Oxley Act of 2002, that:

 

(1)

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

(2)

To my knowledge, the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the period covered by the Report.

 

Date: November 14, 2023

    

By:

  

/s/ Ruby McGregor-Smith

     

Baroness Ruby McGregor-Smith

     

Chief Executive Officer

     

(Principal Executive Officer)

 

*

The foregoing certification is being furnished solely pursuant to 18 U.S.C. §1350 and is not being filed as part of the Report or as a separate disclosure document.

Exhibit 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Investcorp Europe Acquisition Corp I (the “Company”) on Form 10-Q for the quarter ended September 30, 2023, as filed with the Securities and Exchange Commission (the “Report”), I, Craig Sinfield-Hain, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as added by § 906 of the Sarbanes-Oxley Act of 2002, that:

 

(1)

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

(2)

To my knowledge, the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the period covered by the Report.

 

Date: November 14, 2023     By:   /s/ Craig Sinfield-Hain
      Craig Sinfield-Hain
      Chief Financial Officer
      (Principal Financial Officer)

 

*

The foregoing certification is being furnished solely pursuant to 18 U.S.C. §1350 and is not being filed as part of the Report or as a separate disclosure document.

v3.23.3
Cover Page - shares
 9 Months Ended
Sep. 30, 2023
Nov. 14, 2023
Document Information [Line Items]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Sep. 30, 2023  
Document Fiscal Year Focus 2023  
Document Fiscal Period Focus Q3  
Entity Registrant Name Investcorp Europe Acquisition Corp I  
Entity Central Index Key 0001857410  
Entity File Number 001-41161  
Entity Tax Identification Number 00-0000000  
Entity Incorporation, State or Country Code E9  
Entity Address, Address Line One Century Yard  
Entity Address, Address Line Two Cricket Square Elgin Avenue  
Entity Address, Address Line Three P.O. Box 1111  
Entity Address, City or Town George Town  
Entity Address, Country KY  
Entity Address, Postal Zip Code KY1-1102  
City Area Code 345  
Local Phone Number 949-5122  
Document Quarterly Report true  
Document Transition Report false  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Current Fiscal Year End Date --12-31  
Entity Filer Category Non-accelerated Filer  
Entity Shell Company true  
Entity Small Business true  
Entity Emerging Growth Company true  
Entity Ex Transition Period false  
Title of 12(b) Security Class A ordinary shares, par value $0.0001 per share  
Trading Symbol IVCB  
Security Exchange Name NASDAQ  
Capital Units [Member]    
Document Information [Line Items]    
Title of 12(b) Security Units, each consisting of one Class A ordinary share and one-half of one redeemable warrant  
Trading Symbol IVCBU  
Security Exchange Name NASDAQ  
Redeemable warrants [Member]    
Document Information [Line Items]    
Title of 12(b) Security Redeemable warrants, each whole warrant exercisable for one Class A ordinary share at an exercise price of $11.50  
Trading Symbol IVCBW  
Security Exchange Name NASDAQ  
Common Class A [Member]    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   19,005,667
Common Class B [Member]    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   8,625,000
v3.23.3
Condensed Balance Sheets - USD ($)
Sep. 30, 2023
Dec. 31, 2022
Current Assets    
Cash $ 31,052 $ 479,009
Prepaid expenses 113,423 589,702
Total Current Assets 144,475 1,068,711
Marketable securities held in Trust Account 206,459,256 356,976,644
Total Assets 206,603,731 358,045,355
Current liabilities    
Accounts payable and accrued expenses 7,153,522 1,284,291
Note payable to Sponsor 3,315,000 0
Total Current Liabilities 10,468,522 1,284,291
Warrant liabilities 10,109,000 1,552,250
Deferred underwriting fee payable 12,075,000 12,075,000
Total Liabilities 32,652,522 14,911,541
Commitments and Contingencies (Note 10)
Shareholders' Deficit    
Preference shares, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding 0 0
Accumulated deficit (32,508,910) (13,843,693)
Total Shareholders' Deficit (32,508,047) (13,842,830)
Total Liabilities, Shares Subject to Redemption and Shareholders' Deficit 206,603,731 358,045,355
Common Class A [Member]    
Current liabilities    
Class A ordinary shares subject to possible redemption, $0.0001 par value; 19,005,667 shares at $10.86 and 34,500,000 shares at $10.35 per share redemption value at September 30, 2023 and December 31, 2022, respectively 206,459,256 356,976,644
Shareholders' Deficit    
Common Stock 0 0
Common Class B [Member]    
Shareholders' Deficit    
Common Stock $ 863 $ 863
v3.23.3
Condensed Balance Sheets (Parenthetical) - $ / shares
Sep. 30, 2023
Dec. 31, 2022
Preferred Stock, Par or Stated Value Per Share $ 0.0001 $ 0.0001
Preferred Stock, Shares Authorized 1,000,000 1,000,000
Preferred Stock, Shares Issued 0 0
Preferred Stock, Shares Outstanding 0 0
Common Class A [Member]    
Temporary Equity, Par or Stated Value Per Share $ 0.0001 $ 0.0001
Temporary Equity, Shares Outstanding 19,005,667 34,500,000
Temporary Equity, Redemption Price Per Share $ 10.86 $ 10.35
Common Stock, Par or Stated Value Per Share $ 0.0001 $ 0.0001
Common Stock, Shares Authorized 400,000,000 400,000,000
Common Stock, Shares, Issued 0 0
Common Stock, Shares, Outstanding 0 0
Common Class B [Member]    
Common Stock, Par or Stated Value Per Share $ 0.0001 $ 0.0001
Common Stock, Shares Authorized 40,000,000 40,000,000
Common Stock, Shares, Issued 8,625,000 8,625,000
Common Stock, Shares, Outstanding 8,625,000 8,625,000
v3.23.3
Condensed Statements Of Operations - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Formation and operating costs $ 1,058,457 $ 860,671 $ 7,653,872 $ 1,622,634
Loss from Operations (1,058,457) (860,671) (7,653,872) (1,622,634)
Other income (expense)        
Change in fair value of warrant liabilities (3,292,000) 2,067,000 (8,556,750) 23,443,500
Interest earned on Marketable securities held in Trust Account 2,647,851 1,588,336 8,638,982 2,098,957
Gain (loss) on foreign exchange (4,595) 0 (4,595) 9,239
Total other income (expense) (648,744) 3,655,336 77,637 25,551,696
Net Income (Loss) $ (1,707,201) $ 2,794,665 $ (7,576,235) $ 23,929,062
Common Class A [Member]        
Other income (expense)        
Basic weighted average shares outstanding 19,005,667 34,500,000 22,865,061 34,500,000
Basic net income (loss) per share, Basic $ (0.06) $ 0.06 $ (0.24) $ 0.55
Diluted weighted average shares outstanding 19,005,667 34,500,000 22,865,061 34,500,000
Diluted net income (loss) per share, Diluted $ (0.06) $ 0.06 $ (0.24) $ 0.55
Common Class B [Member]        
Other income (expense)        
Basic weighted average shares outstanding 8,625,000 8,625,000 8,625,000 8,625,000
Basic net income (loss) per share, Basic $ (0.06) $ 0.06 $ (0.24) $ 0.55
Diluted weighted average shares outstanding 8,625,000 8,625,000 8,625,000 8,625,000
Diluted net income (loss) per share, Diluted $ (0.06) $ 0.06 $ (0.24) $ 0.55
v3.23.3
Condensed Statements of Changes in Shareholders' Deficit - USD ($)
Total
Accumulated Deficit [Member]
Common Class B [Member]
Ordinary Shares [Member]
Beginning balance (in shares) at Dec. 31, 2021     8,625,000
Beginning balance at Dec. 31, 2021 $ (35,827,142) $ (35,828,005) $ 863
Remeasurement of redeemable shares to redemption value 94,443 94,443  
Net income (loss) 15,891,664 15,891,664  
Ending balance at Mar. 31, 2022 (19,841,035) (19,841,898) $ 863
Ending balance (in shares) at Mar. 31, 2022     8,625,000
Beginning balance (in shares) at Dec. 31, 2021     8,625,000
Beginning balance at Dec. 31, 2021 (35,827,142) (35,828,005) $ 863
Net income (loss) 23,929,062    
Ending balance at Sep. 30, 2022 (13,903,481) (13,904,344) $ 863
Ending balance (in shares) at Sep. 30, 2022     8,625,000
Beginning balance (in shares) at Mar. 31, 2022     8,625,000
Beginning balance at Mar. 31, 2022 (19,841,035) (19,841,898) $ 863
Net income (loss) 5,242,733 5,242,733  
Ending balance at Jun. 30, 2022 (14,596,302) (14,599,165) $ 863
Ending balance (in shares) at Jun. 30, 2022     8,625,000
Remeasurement of redeemable shares to redemption value (2,099,844) (2,099,844)  
Net income (loss) 2,794,665 2,794,665  
Ending balance at Sep. 30, 2022 (13,903,481) (13,904,344) $ 863
Ending balance (in shares) at Sep. 30, 2022     8,625,000
Beginning balance (in shares) at Dec. 31, 2022     8,625,000
Beginning balance at Dec. 31, 2022 (13,842,830) (13,843,693) $ 863
Extension Contribution (350,000) (350,000)  
Remeasurement of redeemable shares to redemption value (3,608,818) (3,608,818)  
Net income (loss) (2,116,311) (2,116,311)  
Ending balance at Mar. 31, 2023 (19,917,959) (19,918,822) $ 863
Ending balance (in shares) at Mar. 31, 2023     8,625,000
Beginning balance (in shares) at Dec. 31, 2022     8,625,000
Beginning balance at Dec. 31, 2022 (13,842,830) (13,843,693) $ 863
Net income (loss) (7,576,235)    
Ending balance at Sep. 30, 2023 (32,508,047) (32,508,910) $ 863
Ending balance (in shares) at Sep. 30, 2023     8,625,000
Beginning balance (in shares) at Mar. 31, 2023     8,625,000
Beginning balance at Mar. 31, 2023 (19,917,959) (19,918,822) $ 863
Extension Contribution (1,050,000) (1,050,000)  
Remeasurement of redeemable shares to redemption value (2,382,313) (2,382,313)  
Net income (loss) (3,752,723) (3,752,723)  
Ending balance at Jun. 30, 2023 (27,102,995) (27,103,858) $ 863
Ending balance (in shares) at Jun. 30, 2023     8,625,000
Extension Contribution (1,050,000) (1,050,000)  
Remeasurement of redeemable shares to redemption value (2,647,851) (2,647,851)  
Net income (loss) (1,707,201) (1,707,201)  
Ending balance at Sep. 30, 2023 $ (32,508,047) $ (32,508,910) $ 863
Ending balance (in shares) at Sep. 30, 2023     8,625,000
v3.23.3
Condensed Statements Of Cash Flows - USD ($)
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2023
Mar. 31, 2023
Sep. 30, 2022
Mar. 31, 2022
Sep. 30, 2023
Sep. 30, 2022
Dec. 31, 2022
Cash Flows from Operating Activities:              
Net income (loss) $ (1,707,201) $ (2,116,311) $ 2,794,665 $ 15,891,664 $ (7,576,235) $ 23,929,062  
Adjustments to reconcile net income (loss) to net cash used in operating activities:              
Interest earned on marketable securities held in Trust Account         (8,638,982) (2,098,956)  
Change in fair value of warrant liabilities 3,292,000   (2,067,000)   8,556,750 (23,443,500)  
Changes in operating assets and liabilities:              
Prepaid expenses         476,279 414,579  
Accounts payable and accrued expenses         5,869,231 (650,405)  
Accrued offering expenses         0 (205,244)  
Net cash used in operating activities         (1,312,957) (2,054,464)  
Cash Flows from Investing Activities:              
Extension Contribution         (2,450,000) 0  
Withdrawal from Trust Account for redemptions         161,606,370 0  
Net cash provided by investing activities         159,156,370 0  
Cash Flows from Financing Activities:              
Proceeds from affiliate promissory note         3,315,000 0  
Payment to Redeeming Shareholders         (161,606,370) 0  
Net cash used in financing activities         (158,291,370) 0  
Net change in cash         (447,957) (2,054,464)  
Cash at beginning of period   $ 479,009   $ 2,632,930 479,009 2,632,930 $ 2,632,930
Cash at end of period $ 31,052   $ 578,466   31,052 578,466 $ 479,009
Supplemental disclosure of cash flow information:              
Remeasurement of Class A Ordinary Shares to redemption value         $ 8,638,982 $ 2,099,844  
v3.23.3
Organization and Business Operation
 9 Months Ended
Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization and Business Operation
Note 1—Organization and Business Operation
Investcorp Asia Acquisition Corp I was incorporated in the Cayman Islands on March 22, 2021. On October 7, 2021, the Company changed its name to Investcorp Europe Acquisition Corp I (the “Company”). The Company was formed for the purpose of entering into a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses or assets (the “Business Combination”). The Company is an early stage and emerging growth company and, as such, the Company is subject to all of the risks associated with early stage and emerging growth companies.
As of September 30, 2023, the Company had not commenced any operations. All activity for the period from March 22, 2021 (inception) through September 30, 2023 relates to the Company’s formation and Initial Public Offering of units (the “IPO”) described below, and since the IPO, the search for a target business. The Company will not generate any operating revenues until after the completion of its initial Business Combination, at the earliest. The Company expects to generate
non-operating
income in the form of interest income on cash and cash equivalents from the proceeds derived from the IPO. The Company has selected December 31 as its fiscal year end.
The registration statement for the Company’s IPO was declared effective on December 14, 2021 (the “Effective Date”). On December 17, 2021, the Company consummated its IPO of 34,500,000 units, which included the full exercise of the underwriter’s over-allotment option of 4,500,000 units (the “Units” and, with respect to the ordinary shares included in the Units being offered, the “Public Shares”) at $10.00 per Unit, generating gross proceeds of $345,000,000, which is discussed further in Note 3.
Simultaneously with the closing of the IPO, the Company consummated the sale of 16,700,000 warrants (the “Private Placement Warrants”), at a price of $1.00 per Private Placement Warrant in a private placement to Europe Acquisition Holdings Limited (the “Sponsor”), generating proceeds of $16,700,000.
Following the closing of the IPO on December 17, 2021, $351,900,000 ($10.20 per Unit) from the net proceeds of the sale of the Units in the IPO and the sale of the Private Placement Warrants was placed in a Trust Account (“Trust Account”), located in the United States at a nationally recognized financial institution, with Continental Stock Transfer & Trust Company acting as trustee (“Continental”), and invested only 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 will not be permitted to invest in other securities or assets. The Trust Account is intended as a holding place for funds pending the earliest to occur of either: (i) the completion of the initial Business Combination; (ii) the redemption of any Public Shares properly tendered in connection with a shareholder vote to amend the Company’s amended and restated memorandum and articles of association (the “Articles”) to (A) modify the substance or timing of the Company’s obligation to allow redemption in connection with the initial Business Combination or to redeem 100% of the Public Shares if the Company does not complete the initial Business Combination within the time frame to consummate the business combination period (the “Business Combination Period”) as defined in its Articles or during any extended time that the Company has to consummate a Business Combination as a result of a shareholder vote to amend its Articles (an “Extension Period”) or (B) with respect to any other provision relating to shareholders’ rights or
pre-Business
Combination activity; and (iii) absent an initial Business Combination within the Business Combination Period or Extension Period from the closing of the initial public offering, the return of the funds held in the Trust Account to the Company’s public shareholders as part of the redemption of the Public Shares. If the Company does not invest the proceeds as discussed above, the Company may be deemed to be subject to the Investment Company Act.
If the Company were deemed to be subject to the Investment Company Act, compliance with these additional regulatory obligations would require additional expenses for which the Company has not allotted funds and may hinder the ability to complete a Business Combination. If the Company has not consummated the initial Business Combination within the required time period, the public shareholders may receive only approximately $10.20 per Public Share, or less in certain circumstances, on the liquidation of the Trust Account and the warrants will expire worthless.
The Company will proceed with a Business Combination if the Company seeks shareholder approval and a majority of the shares voted are voted in favor of the Business Combination. If a shareholder vote is not required by law and the Company does not decide to hold a shareholder vote for business or other reasons, the Company will, pursuant to its Amended and Restated Certificate of Incorporation (the “Amended and Restated Certificate of Incorporation”), conduct the redemptions pursuant to the tender offer rules of the U.S. Securities and Exchange Commission (“SEC”) and file tender offer documents with the SEC prior to completing a Business Combination. If, however, shareholder approval of the transaction is required by law, or the Company decides
to obtain shareholder approval for business or other reasons, the Company will offer to redeem shares in conjunction with a proxy solicitation pursuant to the proxy rules and not pursuant to the tender offer rules. If the Company seeks shareholder approval in connection with a Business Combination, the Sponsor has agreed to vote its Founder Shares (as defined in Note 6) and any Public Shares purchased during or after the Initial Public Offering in favor of approving a Business Combination. Additionally, each public shareholder may elect to redeem their Public Shares irrespective of whether they vote for or against the proposed transaction or don’t vote at all.
Notwithstanding the above, if the Company seeks shareholder approval of a Business Combination and it does not conduct redemptions pursuant to the tender offer rules, the Amended and Restated Certificate of Incorporation provides that a public shareholder, together with any affiliate of such shareholder or any other person with whom such shareholder is acting in concert or as a “group” as defined under Section 13 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), will be restricted from redeeming its shares with respect to more than an aggregate of 15% or more of the Public Shares, without the prior consent of the Company.
The Sponsor has agreed (a) to waive its redemption rights with respect to its Founder Shares and Public Shares held by it in connection with the completion of a Business Combination, (b) to waive its liquidation rights with respect to the Founder Shares if the Company fails to complete a Business Combination within the Extension Period and (c) not to propose an amendment to the Amended and Restated Certificate of Incorporation (i) to modify the substance or timing of the Company’s obligation to allow redemption in connection with the Company’s initial Business Combination or to redeem 100% of its Public Shares if the Company does not complete a Business Combination or (ii) with respect to any other provision relating to shareholders’ rights or
pre-initial
business combination activity, unless the Company provides the public shareholders with the opportunity to redeem their Public Shares in conjunction with any such amendment.
The Sponsor has agreed to waive its liquidation rights with respect to the Founder Shares if the Company fails to complete a Business Combination within the Extension Period. However, if the Sponsor acquires Public Shares, such Public Shares will be entitled to liquidating distributions from the Trust Account if the Company fails to complete a Business Combination within the Extension Period. The underwriters have agreed to waive their rights to their deferred underwriting commission (see Note 10) held in the Trust Account in the event the Company does not complete a Business Combination within the Extension Period; and, in such event, such amounts will be included with the other funds held in the Trust Account that will be available to fund the redemption of the Public Shares. In the event of such distribution, it is possible that the per share value of the assets remaining available for distribution will be less than $10.20 per Public Share
In order to protect the amounts held in the Trust Account, the Sponsor has agreed to be liable to the Company if and to the extent any claims by a third party for services rendered or products sold to the Company, or a prospective target business with which the Company has discussed entering into a transaction agreement, reduce the amount of funds in the Trust Account to below the lesser of (1) $10.20 per Public Share or (2) 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 $10.20 per Public Share due to reductions in the value of the trust assets, less taxes payable, provided that such liability will not apply to any claims under the Company’s indemnity of the underwriters of the Initial Public Offering against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the “Securities Act”). Moreover, in the event that an executed waiver is deemed to be unenforceable against a third party, the Sponsor will not be responsible to the extent of any liability for such third-party claims. The Company will seek to reduce the possibility that the Sponsor will have to indemnify the Trust Account due to claims of creditors by endeavoring to have all vendors, service providers (except the Company’s independent registered public accounting firm), prospective target businesses or other entities with which the Company does business, execute agreements with the Company waiving any right, title, interest or claim of any kind in or to monies held in the Trust Account.
Extraordinary General Meeting
On March 14, 2023, the Company convened an Extraordinary General Meeting (the “Extraordinary General Meeting”) virtually, to vote on the proposals described below. A total of 34,372,929 of the Company’s Class A ordinary shares and Class B ordinary shares (the “Ordinary Shares”), or 79.1% of the Company’s outstanding shares as of February 22, 2023, the record date for the Extraordinary General Meeting, were represented virtually or by proxy at the Extraordinary General Meeting.
As approved by its shareholders at the Extraordinary Meeting, the Company filed an amendment (the “Extension Amendment”). The Extension Amendment (i) extends the date by which the Company must consummate its initial business combination from March 17, 2023 to December 17, 2023 and (ii) remove the limitation that the Company shall not redeem public shares to the extent that such redemption would cause the Company’s net tangible assets to be less than $5,000,001.
Additionally, at the Extraordinary General Meeting holders of Public Shares were afforded the opportunity to require the Company to redeem their Public Shares for their pro rata share of the Trust Account. In connection with the vote to approve the Extension Amendment and the Redemption Limitation, the holders of 15,494,333 Class A ordinary shares properly exercised their rights to redeem their shares for cash at a redemption price of approximately $10.43 per share for an aggregate redemption amount of approximately $161.6 million, leaving 19,005,667 public shares remaining outstanding. Following this redemption, the balance in the Trust Account was approximately $198.2 million.
In connection with the approval of the Extension Amendment, the Sponsor has agreed, by making monthly advancements on the Loan (as defined below), to contribute (each such contribution, an “Extension Contribution”) into the Trust Account the lesser of (x) an aggregate of $350,000 or (y) $0.03 per share for each public share that was not redeemed at the Extraordinary General Meeting for each monthly period (commencing on March 17, 2023 and ending on the 17
th
 day of each subsequent month), or prior thereof, until the earlier of the completion of the initial business combination and the end of the Extension Period. As of September 30, 2023, the Company has made seven contribution payments, each in the amount of $350,000, under the Loan as described below under “—Liquidity, Capital Resources and Going Concern.”
On November 9, 2023, the Company filed a definitive proxy statement on Schedule 14A (“the Extension Proxy”) with respect to an extraordinary general meeting to seek approval from the shareholders of an amendment to its Articles to extend the date by which the Company must consummate its initial business combination from December 17, 2023 to June 17, 2024, as more fully described in the Extension Proxy.
While the funds in the Trust Account have, since the IPO, been held only in U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act with a maturity of 185 days or less, or in money market funds meeting certain conditions under Rule
2a-7
under the Investment Company Act which invest only in direct U.S. government treasury obligations, to mitigate the risk of being viewed as operating an unregistered investment company (including pursuant to the subjective test of Section 3(a)(1)(A) of the Investment Company Act), the Company would, on or prior to the
24-month
anniversary of the effective date of the registration statement relating to the IPO, instruct Continental to liquidate the U.S. government securities or money market funds held in the Trust Account and thereafter to hold all funds in the Trust Account in cash (which may include demand deposit accounts) until the earlier of consummation of the Company’s initial business combination or liquidation.
Liquidity, Capital Resources and Going Concern
As of September 30, 2023, the Company had $31,052 in its operating bank accounts and working capital deficit of $10,324,047. As of September 30, 2023, $8,638,982 of the amount on deposit in marketable securities held in the Trust Account represented interest income and $2,450,000 represented an Extension Contribution, all of which are available to pay the Company’s tax obligations, if any.
To finance transaction costs in connection with the Business Combination, the Company’s Sponsor, an affiliate of the Sponsor or certain of the Company’s officers and directors may, but are not obligated to, provide the Company with Working Capital Loans, as defined below (see Note 6).
On March 7, 2023, the Company entered into
a non-interest bearing
convertible unsecured loan (the “Loan”) in the principal amount of up to $2,000,000 from one of the Sponsor’s affiliates to provide the Company with additional working capital and to fund the Extension Contributions. The Loan represents a Working Capital Loan (see Note 6). The portion of the Loan used to provide the Company with additional working capital will not be deposited into the Trust Account. If the Company does not consummate an initial business combination by the Extension Period, the Loan will be repaid only from funds held outside of the Trust Account or will be forfeited, eliminated or otherwise forgiven. The Loan is convertible into Private Placement Warrants of the post-business combination entity at a price of $1.00 per warrant at the option of the lender. Such warrants would be identical to the Private Placement Warrants.
On July 6, 2023, the Company entered into
a non-interest bearing
unsecured loan in the principal amount of up to $1,700,000 from the Sponsor to fund monthly contributions into the Trust Account until the earlier of a completion of the Business Combination or December 17, 2023. The portion of the Loan used to provide the Company with additional working capital will not be deposited into the Trust Account. This brought the full related party loan available to the Company to $3,700,000.
As of September 30, 2023 there was $3,315,000 outstanding under the Loans entered into on March 7, 2023 and July 6, 2023 as described above. As of December 31, 2022, there were
no
amounts outstanding under any Working Capital Loans (as defined below).
If the Company is not able to consummate a Business Combination before the end of the Extension Period, the Company will commence an automatic winding up, dissolution and liquidation. Management has determined that the automatic liquidation, should a Business Combination not occur, and potential subsequent dissolution also raises substantial doubt about the Company’s ability to continue as a going concern. While management intends to complete a Business Combination, it is uncertain whether the Company will be able to do so. No adjustments have been made to the carrying amounts of assets or liabilities.
Under Accounting Standards Update (ASU)
2014-15,
“Presentation of Financial Statements—Going Concern (Subtopic
205-40):
Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” (“ASU
2014-15”),
these conditions, including the working capital deficit as well as the remaining time in the Extension Period, raise substantial doubt about the Company’s ability to continue as a going concern for a period of time within one year after the date that the financial statements are issued. There is no assurance that the Company’s plan to consummate a Business Combination will be successful within the Extension Period. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
v3.23.3
Significant Accounting Policies
 9 Months Ended
Sep. 30, 2022
Accounting Policies [Abstract]  
Significant Accounting Policies
Note 2—Significant Accounting Policies
Basis of Presentation
The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the instructions to Form
10-Q
and Article 8 of Regulation
S-X
of the SEC. Certain information or footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a complete presentation of financial position, results of operations, or cash flows. In the opinion of management, the accompanying unaudited condensed financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented.
The accompanying unaudited condensed financial statements should be read in conjunction with the Company’s Annual Report on Form
10-K
for the year ended December 31, 2022, as filed with the SEC on April 24, 2023, which contains the audited financial statements and notes thereto. The financial information as of December 31, 2022, is derived from the audited financial statements presented in the Company’s Annual Report on Form
10-
K for the year ended December 31, 2022, as filed with the SEC on April 24, 2023.
Emerging Growth Company Status
The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart our Business
Start-ups
Act of 2012, (the “JOBS Act”), and it 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 its 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.
Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to
non-emerging
growth companies but any such election to opt out is irrevocable. The Company has 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, the Company, 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 the Company’s 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.
Use of Estimates
The preparation of these financial statements in conformity with GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period.
Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from those estimates.
Cash and Cash Equivalents
The Company considers all highly liquid investments, which include short-term bank deposits that are not restricted as to withdrawal or use, and short-term debentures, with original periods to maturity not exceeding three months, to be cash equivalents. The Company had cash of $31,052 and $479,009 as of September 30, 2023 and December 31, 2022. The Company had no cash equivalents as of September 30, 2023 and December 31, 2022.
Marketable Securities Held in Trust Account
Investments in money market funds are recognized at fair value and are presented on the balance sheets at fair value at the end of each reporting period. Gains and losses resulting from the change in fair value of these securities is included in income from marketable securities held in the Trust Account in the accompanying statement of operations. The estimated fair values of marketable securities held in the Trust Account are determined using available market information. As of September 30, 2023 and December 31, 2022, the assets held in the Trust Account consisted of cash and money market mutual funds in the amount of $206,459,256 and $356,976,644, respectively.
Concentration of Credit Risk
Financial instruments that potentially subject the Company to concentrations of credit risk consist of a cash account in a financial institution, which, at times, may exceed the Federal Depository Insurance Coverage of $250,000. As of September 30, 2023, the Company has not experienced losses on this account and management believes the Company is not exposed to significant risks on such account.
Offering Costs Associated with Initial Public Offering
The Company complies with the requirements of the ASC
340-10-S99-1
and SEC Staff Accounting Bulletin (“SAB”) Topic 5A — “Expenses of Offering”. Offering costs consist principally of professional and registration fees incurred through the balance sheet date that are related to the IPO. Offering costs are charged to shareholders’ equity or the statement of operations based on the relative value of the Units that consist of one Class A ordinary share and
one-half
of one redeemable warrant (“Public Warrants”) and the Private Placement Warrants to the proceeds received from the Units sold upon the completion of the IPO. Accordingly, on December 17, 2021 offering costs totaling $20,078,227 (consisting of $6,900,000 of underwriting fee, $12,075,000 of deferred underwriting fee and $1,103,227 of other offering costs) were recognized with $854,057 included in accumulated deficit as an allocation for the Public Warrants and the Private Placement Warrants. Subsequent to the IPO, upon invoice receipt, other offering costs were adjusted downwards by $94,443 to true up estimates to the actual expenses incurred.
Net Income (Loss) Per Ordinary Share
The Company’s statements of operations include a presentation of net income (loss) per share for ordinary shares subject to possible redemption and applies the
two-class
method in calculating net income (loss) per share. Net income (loss) per ordinary share, basic and diluted, is calculated by dividing the
pro-
rata allocation of net income (loss) for each class, by the weighted average number of Class A and Class B
non-redeemable
ordinary shares outstanding for the period. Net income (loss) is allocated
pro-rata
between Class A redeemable and Class B
non-redeemable
shares based on their respective weighted average shares outstanding for the period. As of September 30, 2023, the potential ordinary shares for outstanding Public and Private Warrants to purchase the Company’s ordinary shares were excluded from diluted earnings per share for the three and nine months ended September 30, 2023 because they are contingently exercisable, and the contingencies have not yet been met. As a result, diluted net income per ordinary share is the same as basic net income per ordinary share for the period.
The following table reflects the calculation of basic and diluted net income per ordinary share (in dollars, except per share amounts):
 
    
For the three months ended
  
    
September 30, 2023
    
September 30, 2022
  
    
Redeemable

Class A

ordinary shares
    
Non-

Redeemable

Class B

ordinary shares
    
Redeemable

Class A

ordinary

shares
     
Non-

Redeemable

Class B

ordinary shares
  
Basic and diluted net income (loss) per share:
          
Numerator:
          
Allocation of net income (loss)
    $ (1,174,293 )    $ (532,908 )    $ 2,235,732      $ 558,933  
  
 
 
    
 
 
    
 
 
     
 
 
  
Denominator:
          
Weighted-average shares outstanding
      19,005,667       8,625,000       34,500,000        8,625,000  
  
 
 
    
 
 
    
 
 
     
 
 
  
Basic and diluted net income (loss) per share
    $ (0.06 )    $ (0.06 )    $ 0.06      $ 0.06  
  
 
 
    
 
 
    
 
 
     
 
 
  
    
For the nine months ended
  
    
September 30, 2023
    
September 30, 2022
  
    
Redeemable

Class A

ordinary shares
    
Non-

Redeemable

Class B

ordinary shares
    
Redeemable

Class A

ordinary

shares
     
Non-

Redeemable

Class B

ordinary shares
  
Basic and diluted net income (loss) per share:
          
Numerator:
          
Allocation of net income (loss)
    $ (5,501,135 )    $ (2,075,100 )    $ 19,143,250      $ 4,785,812  
  
 
 
    
 
 
    
 
 
     
 
 
  
Denominator:
          
Weighted-average shares outstanding
      22,865,061       8,625,000       34,500,000        8,625,000  
  
 
 
    
 
 
    
 
 
     
 
 
  
Basic and diluted net income (loss) per share
    $ (0.24 )    $ (0.24 )    $ 0.55      $ 0.55  
  
 
 
    
 
 
    
 
 
     
 
 
  
Fair Value of Financial Instruments
The fair value of the Company’s assets and liabilities approximates the carrying amounts represented in the accompanying balance sheet, primarily due to their short-term nature.
Fair Value Measurements
The Company applies ASC 820, which establishes a framework for measuring fair value and clarifies the definition of fair value within that framework. ASC 820 defines fair value as an exit price, which is the price that would be received for an asset or paid to transfer a liability in the Company’s principal or most advantageous market in an orderly transaction between market participants on the measurement date. The fair value hierarchy established in ASC 820 generally requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs reflect the assumptions that market participants would use in pricing the asset or liability and are developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the entity’s own assumptions based on market data and the entity’s judgments about the assumptions that market participants would use in pricing the asset or liability and are to be developed based on the best information available in the circumstances.
Level 1—Assets and liabilities with unadjusted, quoted prices listed on active market exchanges. Inputs to the fair value measurement are observable inputs, such as quoted prices in active markets for identical assets or liabilities.
Level 2—Inputs to the fair value measurement are determined using prices for recently traded assets and liabilities with similar underlying terms, as well as direct or indirect observable inputs, such as interest rates and yield curves that are observable at commonly quoted intervals.
Level 3—Inputs to the fair value measurement are unobservable inputs, such as estimates, assumptions, and valuation techniques when little or no market data exists for the assets or liabilities.
In some circumstances, the inputs used to measure fair value might be categorized within different levels of the fair value hierarchy. In those instances, the fair value measurement is categorized in its entirety in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement.
Derivative Financial Instruments
The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives in accordance with ASC Topic 815, “Derivatives and Hedging”. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value on the issuance date and is
then re-valued at
each reporting date, with changes in the fair value reported in the statement of operations. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative liabilities are classified in the balance sheet as current
or non-current based
on whether or
not net-cash settlement
or conversion of the instrument could be required within 12 months of the balance sheet date.
The 33,950,000 warrants issued in connection with the Initial Public Offering and the Private Placement (including the 17,250,000 Public Warrants included in the Units and the 16,700,000 Private Placement Warrants) were recognized as derivative liabilities in accordance with ASC 815. Accordingly, the Company recognizes the warrant instruments as liabilities at fair value and adjust the instruments to fair value at each reporting period. The liabilities are subject
to re-measurement at
each balance sheet date until exercised. The determination of the fair value of the warrant liability may be subject to change as more current information becomes available and accordingly the actual results could differ significantly. Derivative warrant liabilities are classified
as non-current liabilities
as their liquidation is not reasonably expected to require the use of current assets or require the creation of current liabilities.
Ordinary Shares Subject to Possible Redemption
The Company accounts for its 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 the Company’s control) are classified as temporary equity. At all other times, ordinary shares are classified as shareholders’ equity. The Company’s Class A ordinary shares feature certain redemption rights that are considered to be outside of the Company’s control and subject to occurrence of uncertain future events.
Accordingly, as of September 30, 2023 and December 31, 2022, Class A ordinary shares subject to possible redemption are presented at redemption value as temporary equity, outside of the shareholders’ deficit section of the Company’s balance sheet.
Immediately upon the closing of the IPO, the Company recognized the accretion from initial book value to redemption amount. Increases or decreases in the carrying amount of redeemable ordinary shares are affected by charges against
additional paid-in capital
and accumulated deficit.
As of September 30, 2023 and December 31, 2022, the Class A ordinary shares subject to possible redemption reflected in the balance sheet are reconciled in the following table:
 
    
September 30, 2023
     
December 31, 2022
  
As of beginning of the period
    $ 356,976,644      $ 351,900,000  
Less:
                  
Redemptions as a result of Extraordinary General Meeting
      (161,606,370 )          
Plus:
                  
Extension Contribution
      2,450,000        —    
Remeasurement of carrying value to redemption value
      8,638,982        5,076,644  
    
 
 
     
 
 
  
Class A ordinary shares subject to possible redemption
    $ 206,459,256      $ 356,976,644  
    
 
 
     
 
 
  
Income taxes
The Company accounts for income taxes in accordance with the provisions of ASC Topic 740, “Income Taxes” (“ASC 740”). Under the asset and liability, method as required by this accounting standard, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the carrying amounts of assets and liabilities in the financial statements and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to the period when assets are realized or liabilities are settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statement of operations in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities.
ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts.
There were no unrecognized tax benefits as of September 30, 2023. The Company’s management determined that the Cayman Islands is the Company’s only major tax jurisdiction. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. As of September 30, 2023, there were no unrecognized tax benefits, and no amounts were accrued for the payment of interest and penalties.
There is currently no taxation imposed by the Government of the Cayman Islands. In accordance with Cayman income tax regulations, income taxes are not levied on the Company. Consequently, income taxes are not reflected in the Company’s financial statements. The Company’s management does not expect that the total amount of unrecognized tax benefits will materially change over the next twelve months.
Recent Accounting Pronouncements
In August 2020, the FASB issued ASU
No. 2020-06,
“Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity”. The update simplifies the accounting for convertible instruments by removing certain separation models in Subtopic
470-20,
Debt—Debt with Conversion and Other Options for convertible instruments and introducing other changes. As a result of ASU
No. 2020-06,
more convertible debt instruments will be accounted for as a single liability measured at amortized cost and more convertible preference shares will be accounted for as a single equity instrument measured at historical cost, as long as no features require bifurcation and recognition as derivatives. The amendments are effective for smaller reporting companies for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Company adopted ASU
No. 2020-06
upon its incorporation. The impact to the balance sheet, statements of operations and cash flows was not material.
Management does not believe that any other recently issued, but not effective, accounting standards, if currently adopted, would have a material effect on the Company’s financial statements.
v3.23.3
Initial Public Offering
 9 Months Ended
Sep. 30, 2022
Stockholders' Equity Note [Abstract]  
Initial Public Offering
Note 3— Initial Public Offering
On December 17, 2021 the Company sold 34,500,000 Units, which included 4,500,000 units from the underwriters full exercise of their over-allotment option, at a price of $10.00 per Unit, generating gross proceeds to the Company of $345,000,000. Each Unit consists of one Class A ordinary share and
one-half
of one redeemable warrant. Each whole Public Warrant entitles the holder to purchase one Class A ordinary share at a price of $11.50 per share, subject to adjustment (see Note 9).
Following the closing of the IPO on December 17, 2021 an aggregate of $351,900,000 ($10.20 per Unit) from the net proceeds of the sale of the Units in the IPO and the sale of the Private Placement Warrants was deposited into the Trust Account. The net proceeds deposited into the Trust Account will be invested in U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act, with a maturity of 185 days or less or in any open-ended investment company that holds itself out as a money market fund meeting the conditions of Rule
2a-7
of the Investment Company Act, as determined by the Company.
Transaction costs of the IPO amounted to $20,078,227 consisting of $6,900,000 of underwriting fee, $12,075,000 of deferred underwriting fee and $1,103,227 of other offering costs. Of the transaction costs, $19,224,170 was included in Additional
Paid-in
Capital and $854,057 was included in accumulated deficit.
v3.23.3
Potential Business Combination Agreement
 9 Months Ended
Sep. 30, 2022
Business Combinations [Abstract]  
Potential Business Combination Agreement
Note 4— Potential Business Combination Agreement
On April 25, 2023, the Company entered into a business combination agreement with OpSec Holdings, a Cayman Islands exempted company with limited liability (“Pubco”), Opal Merger Sub I, a Cayman Islands exempted company incorporated with limited liability and wholly-owned subsidiary of Pubco (“Merger Sub I”), Opal Merger Sub II, a Cayman Islands exempted company incorporated with limited liability and wholly-owned Subsidiary of Pubco (“Merger Sub II”), Orca Holdings Limited, a Cayman Islands exempted company incorporated with limited liability (“OpSec”), Orca Midco Limited, a private limited company incorporated under the Laws of England and Wales (“Orca Midco”), Orca Bidco Limited, a private limited company incorporated under the Laws of England and Wales and a subsidiary of OpSec (“Orca”), Investcorp Technology Secondary Fund 2018, L.P., a Cayman Islands exempted limited partnership (“ITSF”), and Mill Reef Capital Fund ScS, a limited partnership (
société en commandite simple
) organized under the laws of Luxembourg (“Mill Reef”, and together with ITSF, the “OpSec Shareholders”), pursuant to which, among other things and subject to certain terms and conditions, (1) the OpSec Shareholders will contribute to Pubco all of the issued and outstanding ordinary shares of OpSec (the “OpSec Ordinary Shares”) in exchange for (a) ordinary shares of Pubco (“Pubco Ordinary Shares”) and (b) an aggregate amount in cash equal to $10,000,000 (collectively, the “Share Contribution” and with respect to the date it occurs, the “Share Contribution Closing”), (2) following the Share Contribution, OpSec will merge with and into Merger Sub I, as a result of which the separate corporate existence of OpSec shall cease and Merger Sub I shall continue as the surviving company (the “First Merger”), and (3) following the First Merger, the Company will merge with and into Merger Sub II (the “Second Merger”), as a result of which (a) the separate corporate existence of Merger Sub II shall cease and the Company shall continue as the surviving company, (b) the issued and outstanding Class A ordinary shares immediately prior to the effective time of the Second Merger (the “Second Merger Effective Time”) shall be exchanged for Pubco Ordinary Shares concurrently with the Second Merger, (c) the issued and outstanding Class B ordinary shares immediately prior to the Second Merger Effective Time shall be transferred to Pubco in exchange for Pubco Ordinary Shares and (d) the warrants of the Company outstanding immediately prior to the Second Merger Effective Time shall cease to represent a right to acquire the number of Class A ordinary shares set forth in such warrant and will instead be assumed by Pubco and automatically converted into warrants issued by Pubco (“Pubco Warrants”) to acquire an equal number of Pubco Ordinary Shares.
Following consummation of the transactions, the Company will be a wholly-owned subsidiary of Pubco and OpSec will be a wholly-owned subsidiary of Pubco. OpSec will hold approximately 97% of the issued and outstanding equity of its underlying operating subsidiaries. The Transactions are expected to close in the second half of 2023, subject to customary closing conditions, including the required approval by the shareholders of the Company. Other than pursuant to the terms and conditions set forth in the Backstop Agreement, there are no other financial closing conditions of the Transactions that would preclude closing once shareholder approval is obtained.
Each public unit of the Company outstanding immediately prior to the Second Merger Effective Time shall be automatically detached and the holder thereof shall be deemed to hold one Class A ordinary share
and one-half of
a warrant, which underlying securities shall be converted as set forth below and in accordance with the terms and conditions of the Business Combination Agreement.
At the Second Merger Effective Time, by virtue of the Second Merger and without any further action required on the part of any Party or the holders of securities of the Company or Merger Sub II:
 
  (1)
Class
 A ordinary shares
: Each Class A ordinary share issued and outstanding immediately prior to the Second Merger Effective Time (after giving effect to redemptions) shall be exchanged for one Pubco Ordinary Share.
 
  (2)
Warrants
: Each warrant outstanding immediately prior to the Second Merger Effective Time shall cease to represent a right to acquire the number of Class A ordinary shares set forth in such warrant and will be exchanged for a warrant to acquire one Pubco Ordinary Share. Each of the Pubco Warrants shall have, and be subject to, substantially the same terms and conditions set forth in the Company public warrants.
Concurrently with the Second Merger and after giving effect to the Share Cancellation described below, the Sponsor and certain shareholders of the Company (together with the Sponsor, the “Sponsor Members”) will sell and transfer to Pubco, and Pubco will purchase, the outstanding Class B ordinary shares in exchange for an equal number of Pubco Ordinary Shares and immediately after the Second Merger Effective Time each such Class B ordinary share will be converted into a Class A ordinary share.
In connection with the Share Contribution, the OpSec Shareholders will receive, in aggregate, (1) 23,577,550 Pubco Ordinary Shares, (2) an aggregate amount in cash equal to $10,000,000 and (3) the right to receive in aggregate an additional 1,277,550 Pubco Ordinary Shares upon the satisfaction of either of the following conditions (each, “Triggering Event”):
 
  (1)
if at any time from the Second Merger Effective Time through the date that is the tenth anniversary of the Second Merger Effective Time the volume-weighted average price of Pubco Ordinary Shares is greater than or equal to $12.00 over any 20 trading days within any 30 trading day period; and
 
  (2)
if at any time from the Second Merger Effective Time through the date that is the tenth anniversary of the Second Merger Effective Time there is a change of control of Pubco.
In connection with the Business Combination Agreement, the Company entered into the following agreements:
Backstop Agreement:
On April 25, 2023, concurrently with the execution of the Business Combination Agreement, the Sponsor, the Company, OpSec and Pubco entered into a backstop agreement (the “Backstop Agreement”), pursuant to which, on the terms and subject to the conditions set forth therein, the Sponsor has committed to purchase, prior to the Second Merger Closing, equity securities of Pubco, in a private placement, for an aggregate purchase price not to exceed $50 million, to backstop certain redemptions by Shareholders of the Company.
Insider Letter Amendment:
On April 25, 2023, concurrently with the execution of the Business Combination Agreement, the Company and the Sponsor Members have entered into an amendment to that certain Letter Agreement, dated as of December 14, 2021, by and among the Company and the Sponsor Members (the “Insider Letter”), pursuant to which, among other things, the Insider Letter was amended to reduce period of time during which the Sponsor Members have agreed not to transfer their Pubco Ordinary Shares issued in respect of the exchange of their Class B ordinary shares.
Sponsor Support Agreement:
On April 25, 2023, concurrently with the execution of the Business Combination Agreement, the Sponsor Members, Pubco and the Company have entered into a sponsor support agreement (the “Sponsor Support Agreement”), pursuant to which, among other things, (1) each Sponsor Member agreed (a) to vote all ordinary shares of the Company held by such Sponsor Member in favor of the Business Combination Agreement and the Transactions, (b) 50% of the Pubco Ordinary Shares held by such Sponsor Member as of immediately following the Second Merger Effective Time and after giving effect to the Share Cancellation (as defined below) shall be placed in escrow pursuant to an escrow agreement to be mutually agreed upon, by and among the Sponsor Members, Pubco and a mutually agreed upon escrow agent (the “Sponsor Earnout Shares”) and (c) to abstain from exercising any redemption rights in connection with the redemption of any Class A ordinary shares, and (2) the Sponsor further agreed to (a) along with certain other Sponsor Members, surrender for nil consideration and cancel immediately prior to the Share Contribution, but subject to the consummation of the Second Merger, in aggregate, 2,555,100 Class B ordinary shares held by such Sponsor Member as of immediately prior to the Share Contribution (the “Share Cancellation”), (b) transfer to the OpSec Shareholders immediately following the Share Contribution, but subject to the consummation of the Second Merger, 2,050,000 Warrants held by the Sponsor and (c) reimburse the Company for expenses in excess of $20,000,000, unless such excess expenses have otherwise been approved in writing by OpSec, in each case, on the terms and subject to the conditions set forth in the Sponsor Support Agreement.
The Sponsor Earnout Shares shall be released from escrow pursuant to such escrow agreement and delivered to such Sponsor Member upon the occurrence of a Triggering Event.
In connection with the Closing, the Company will enter into, among others, the following agreements:
Lock-Up
Agreement:
At the Share Contribution Closing, the OpSec Shareholders and Pubco shall enter into a
lock-up
agreement, pursuant to which, the OpSec Shareholders agree, subject to customary exceptions, not to transfer their Pubco Ordinary Shares during the period commencing on the date of the Share Contribution Closing and ending on the earlier of (1) the date that is nine months after the Share Contribution Closing and (2) the date on which Pubco undergoes a change of control.
Registration Rights Agreement:
In connection with the Transactions, at the Second Merger Closing, and subject to the consummation thereof, (1) the Registration Rights Agreement, dated December 14, 2021, by and among the Company and the Sponsor Members, shall be terminated and (2) Pubco, the OpSec Shareholders and the Sponsor Members shall enter into a registration rights agreement, pursuant to which, among other things, the OpSec Shareholders and the Sponsor Members shall be granted customary registration rights, on the terms and subject to the conditions set forth therein.
Warrant Assignment, Assumption and Amendment:
In connection with the Transactions, at or prior to the Second Merger Effective Time, the Company, Pubco and Continental will enter into a warrant assignment, assumption and amendment agreement, which amends that certain Warrant Agreement, dated December 14, 2021, by and between the Company and Continental, pursuant to which, among other things, (1) the Company will assign to Pubco, and Pubco will assume, all of the Company’s right, title and interest in and to the Warrant Agreement and (2) each warrant shall be modified to no longer entitle the holder thereof to purchase Class A ordinary shares and instead acquire an equal number of Pubco Ordinary Shares.
v3.23.3
Private Placement Warrants
 9 Months Ended
Sep. 30, 2022
Private Placement Warrants [Abstract]  
Private Placement Warrants
Note 5—Private Placement Warrants
Simultaneously with consummation of the IPO, the Sponsor purchased an aggregate of 16,700,000 Private Placement Warrants at a price of $1.00 per Private Placement Warrant ($16,700,000 in the aggregate). Each whole Private Placement Warrant is exercisable for one Class A ordinary share at a price of $11.50 per share. A portion of the proceeds from the sale of the Private Placement Warrants to the Sponsor were added to the proceeds from the IPO to be held in the Trust Account. If the Company does not complete a Business Combination within the Extension Period, the proceeds from the sale of the Private Placement Warrants held in the Trust Account will be used to fund the redemption of the Public Shares (subject to the requirements of applicable law), and the Private Placement Warrants will expire worthless.
v3.23.3
Related Party Transactions
 9 Months Ended
Sep. 30, 2022
Related Party Transactions [Abstract]  
Related Party Transactions
Note 6—Related Party Transactions
Founder Shares
On April 1, 2021, the Sponsor purchased 8,625,000 shares of the Company’s Class B ordinary shares (the “Founder Shares”) for an aggregate purchase price of $25,000. On November 3, 2021, the Sponsor transferred 718,750 Founder Shares to Baroness Ruby McGregor-Smith, 479,167 Founder Shares to Peter McKellar, and 30,000 Founder Shares to each of Pam Jackson, Laurence Ponchaut and Adah Almutairi, at approximately $0.12 per share. This resulted in a benefit to the Company from the excess fair value of shares issued over the nominal purchase price. The excess fair value of the Founder Shares over their nominal purchase price is estimated to be $5,292,600 and will be recorded as compensation expense upon closing of the Business Combination.
The Sponsor and the Company’s directors and executive officers have agreed, subject to certain limited exceptions, not to transfer, assign or sell any of the Founder Shares until the earlier of (A) one year after the completion of a Business Combination and (B) subsequent to a Business Combination, (x) if the last reported sale price of the Class A ordinary share 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 120 days after a Business Combination, or (y) if the Company consummates a transaction after the initial Business Combination which results in shareholders having the right to exchange their shares for cash, securities or other property.
Related Party Loans
In order to fund working capital deficiencies or finance transaction costs in connection with a Business Combination, the Sponsor or an affiliate of the Sponsor may, but is not obligated to, loan the Company funds as may be required (“Working Capital Loans”). If the Company completes a Business Combination, the Company may repay the Working Capital Loans out of the proceeds of the Trust Account released to the Company. In the event that a Business Combination does not close, the Company 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. At the lender’s discretion, up to $2,000,000 of such Working Capital Loans may be convertible into warrants of the post-Business Combination entity at a price of $1.00 per warrant. The terms of the warrants would be identical to the terms of the Private Placement Warrants.
On March 7, 2023, the Company entered into
a non-interest bearing
convertible unsecured loan in the principal amount of up to $2,000,000 from one of the Sponsor’s affiliates to provide the Company with additional working capital and to fund the Extension Contributions. The Loan constitutes a Working Capital Loan as defined above. The portion of the Loan used to provide the Company with additional working capital will not be deposited into the Trust Account. If the Company does not consummate an initial business combination during the Extension Period, the Loan will be repaid only from funds held outside of the Trust Account or will be forfeited, eliminated or otherwise forgiven. The Loan is convertible into private placement warrants of the post-business combination entity at a price of $1.00 per warrant at the option of the lender. Such warrants would be identical to the private placement warrants. The conversion option represents an embedded derivative under ASC
815-15,
“Embedded Derivatives.” The Company has determined that based on the valuation of its Private Placement Warrants and the fact that a Business Combination is not considered probable until such time as it is consummated, the value of this conversion option is de minimis.
On July 6, 2023, the Company entered into
a non-interest bearing
unsecured loan in the principal amount of up to $1,700,000 from the Sponsor to fund monthly contributions into the Trust Account until the earlier of a completion of the Business Combination or December 17, 2023. The portion of the Loan used to provide the Company with additional working capital will not be deposited into the Trust Account.
The Loan bears no interest and shall be due and payable on the earlier of (i) the date on which the Borrower consummates the transaction or (ii) the date of that the winding up of the Borrower is effective. If the Company does not consummate an initial business combination by December 17, 2023, the Loan will be repaid only from funds held outside of the Trust Account or will be forfeited, eliminated or otherwise forgiven. If at any time the Board of Directors determines that the Company will not be able to consummate an initial business combination by December 17, 2023 and that the Company shall instead liquidate, the Sponsor’s obligation to continue to make contributions shall cease immediately upon such determination.
An initial amount of $350,000 was drawn down from the Loan on March 17, 2023 for the first Extension Contribution, and an additional $1,050,000 and $2,100,000 was drawn down in the three months and nine months ended September 30, 2023, respectively for three and six further Extension Contributions, respectively. In addition, $865,000 was drawn in order to fund the working capital requirements of the Company in three tranches of $250,000 in April 2023, $350,000 in May 2023 and $265,000 in July. The total amount outstanding under the Loans entered into on March 7, 2023 and July 6, 2023 described above and any other Working Capital Loans as of September 30, 2023 was $3,315,000. There was no amount outstanding under any Working Capital Loans as of December 31, 2022.
v3.23.3
Class A Ordinary Shares Subject to Possible Redemption
 9 Months Ended
Sep. 30, 2022
Temporary Equity Disclosure [Abstract]  
Class A Ordinary Shares Subject to Possible Redemption
Note 7—Class A Ordinary Shares Subject to Possible Redemption
Class
 A Ordinary Shares—
The Company is authorized to issue 400,000,000 Class A ordinary shares with a par value of $0.0001 per share. Holders of Class A ordinary shares are entitled to one vote for each share. As of September 30, 2023 and December 31, 2022, there were no Class A ordinary shares issued or outstanding (excluding 19,005,667 and 34,500,000 shares subject to possible redemption, respectively).
On March 14, 2023 at the Extraordinary General Meeting, holders of Public Shares were afforded the opportunity to require the Company to redeem their public shares for their pro rate share of the Trust Account. 15,494,333 out of 34,500,000 Public Shares were redeemed at a redemption price of approximately $10.43 per share, leaving 19,005,667 Public Shares remaining outstanding.
v3.23.3
Shareholders' Deficit
 9 Months Ended
Sep. 30, 2022
Stockholders' Equity Note [Abstract]  
Shareholders' Deficit
Note 8—Shareholders’ Deficit
Preference Shares
—The Company is authorized to issue 1,000,000 preference shares, with a par value of $0.0001 per share, with such designations, voting and other rights and preferences as may be determined from time to time by the Company’s board of directors. As of September 30, 2023 and December 31, 2022, there were no preference shares issued or outstanding.
Class
 B Ordinary Shares
—The Company is authorized to issue 40,000,000 Class B ordinary shares with a par value of $0.0001 per share. As of September 30, 2023 and December 31, 2022, there were 8,625,000 shares of Class B ordinary shares issued and outstanding.
Holders of Ordinary Shares will vote together as a single class on all matters submitted to a vote of shareholders except as required by law.
Class B ordinary shares (the Founder Shares) will convert into Class A ordinary shares following the consummation of the initial Business Combination on a
one-for-one
basis, in accordance with the following schedule: (i) 50% on the trading day following the consummation of a Business Combination, and (ii) 50% if, post consummation of a Business Combination and prior to the ten year anniversary of the initial Business Combination, the volume weighted average trading price of the Class A ordinary shares for any 10 trading days within a 15 trading day period exceeds $12.00, on the trading day following such trading period, subject to adjustment. In the case that additional Class A ordinary shares, or equity-linked securities, are issued or deemed issued in excess of the amounts offered in the initial public offering and related to the closing of a Business Combination, the ratio at which Class B ordinary shares shall convert into Class A ordinary shares will be adjusted (unless the holders of a majority of the outstanding Class B ordinary shares agree to waive such adjustment with respect to any such issuance or deemed issuance) so that the number of Class A ordinary shares issuable upon conversion of all Class B ordinary shares will equal, in the aggregate, on an
as-converted
basis, 20% of the sum of the total number of all ordinary shares outstanding upon the completion of the initial public offering plus all Class A ordinary shares and equity-linked securities issued or deemed issued in connection with a Business Combination (excluding any shares or equity-linked securities issued, or to be issued, to any seller in a Business Combination).
v3.23.3
Warrant Liabilities
 9 Months Ended
Sep. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Warrant Liabilities
Note 9—Warrant Liabilities
Public Warrants may only be exercised for a whole number of shares. No fractional warrants will be issued upon separation of the Units and only whole warrants will trade. The Public Warrants will become exercisable 30 days after the completion of a Business Combination.
The Company will not be obligated to deliver any Class A ordinary shares pursuant to the exercise of a warrant and will have no obligation to settle such warrant exercise unless a registration statement under the Securities Act with respect to Class A ordinary shares underlying the warrants is then effective and a prospectus relating thereto is current, subject to the Company satisfying its obligations with respect to registration, or a valid exemption from registration is available. No warrant will be exercisable, and the
Company will not be obligated to issue any Class A ordinary shares upon exercise of a warrant unless the Class A ordinary share issuable upon such warrant exercise has been registered, qualified or deemed to be exempt under the securities laws of the state of residence of the registered holder of the warrants.
The Company has agreed that as soon as practicable, but in no event later than 20 business days after the closing of a Business Combination, it will use its commercially reasonable efforts to file with the SEC a post-effective amendment to the registration statement of which this prospectus forms a part or a new registration statement for the registration, under the Securities Act, of Class A ordinary shares issuable upon exercise of the warrants, and the Company will use its commercially reasonable efforts to cause the same to become effective within 60 business days after the closing of a 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, as specified in the warrant agreement; provided that if the Class A ordinary share is 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, the Company may, at its 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 the Company so elects, the Company will not be required to file or maintain in effect a registration statement, but it will use its commercially reasonably efforts to register or qualify the shares under applicable blue sky laws to the extent an exemption is not available. If a registration statement covering Class A ordinary shares issuable upon exercise of the warrants is not effective by the 60th day after the closing of a Business Combination, warrant holders may, until such time as there is an effective registration statement and during any period when the Company will have failed to maintain an effective registration statement, exercise warrants on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act or another exemption, but the Company will use its commercially reasonably efforts to register or qualify the shares under applicable blue sky laws to the extent an exemption is not available.
Redemption of warrants when the price per Class
 ordinary share equals or exceeds $18.00.
Once the Public Warrants become exercisable, the Company may redeem the Public Warrants:
 
  •  
in whole and not in part;
 
  •  
at a price of $0.01 per warrant;
 
  •  
upon not less than 30 days’ prior written notice of redemption to each warrant holder; and
 
  •  
if, and only if, the closing price of the Class A ordinary shares equals or exceeds $18.00 per share for any 20 trading days within a
30-trading
day period ending three trading days before the Company sends the notice of redemption to the warrant holders.
If and when the Public Warrants become redeemable by the Company, it may exercise its redemption right even if the Company is unable to register or qualify the underlying securities for sale under all applicable state securities laws.
Redemption of warrants when the price per Class
 A ordinary share equals or exceeds $10.00.
Once the Public Warrants become exercisable, the Company may redeem the Public Warrants:
 
  •  
in whole and not in part;
 
  •  
at a price of $0.10 per warrant;
 
  •  
upon a minimum of 30 days’ prior written notice of redemption provided that holders will be able to exercise their warrants on a cashless basis prior to redemption and receive that number of shares based on the redemption date and the fair market value of the Class A ordinary shares;
 
  •  
if, and only if, the Reference Value (as defined above under “—Redemption of warrants when the price per Class A ordinary share equals or exceeds $18.00”) equals or exceeds $10.00 per share (as adjusted for share
sub-divisions,
share dividends, reorganizations, recapitalizations and the like); and
 
  •  
if the Reference Value is less than $18.00 per share (as adjusted for share
sub-divisions,
share dividends, reorganizations, recapitalizations and the like), the private placement warrants must also be concurrently called for redemption on the same terms as the outstanding public warrants, as described above.
In addition, if (x) the Company issues additional Class A ordinary shares or equity-linked securities for capital raising purposes in connection with the closing of the initial Business Combination at an issue price or effective issue price of less than $9.20 per Class A 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”), (y) the aggregate gross proceeds from such issuances represent more than 60% of the total equity proceeds, and interest thereon, available for the funding of a Business Combination on the date of the consummation of a Business Combination (net of redemptions), and (z) the volume weighted average
trading price of Class A ordinary shares during the 20 trading day period starting on the trading day prior to the day on which the Company consummates a Business Combination (such price, the “Market Value”) is below $9.20 per share, then the exercise price of the warrants will be adjusted (to the nearest cent) to be equal to 115% of the higher of the Market Value and the Newly Issued Price, and the $10.00 and $18.00 per share redemption trigger prices described adjacent to “Redemption of warrants when the price per Class A ordinary share equals or exceeds $10.00” and “Redemption of warrants when the price per Class A ordinary share equals or exceeds $18.00” will be adjusted (to the nearest cent) to be equal to 100% and 180% of the higher of the Market Value and the Newly Issued Price, respectively.
The Private Placement Warrants are identical to the Public Warrants underlying the Units sold in the IPO, except that the Private Placement Warrants and Class A ordinary shares issuable upon the exercise of the Private Placement Warrants will not be transferable, assignable or saleable until 30 days after the completion of a Business Combination, subject to certain limited exceptions. Additionally, the Private Placement Warrants will be exercisable for cash or on a cashless basis, at the holder’s option, and be
non-redeemable
so long as they are held by the initial purchasers or their permitted transferees (except for a number of Class A ordinary shares as described above under Redemption of warrants for Class A ordinary shares). If the Private Placement Warrants are held by someone other than the initial purchasers or their permitted transferees, the Private Placement Warrants will be redeemable by the Company in all redemption scenarios and exercisable by such holders on the same basis as the Public Warrants.
The Company accounts for the 33,950,000 warrants issued in connection with the IPO (including 17,250,000 Public Warrants and 16,700,000 Private Placement Warrants) in accordance with the guidance contained in ASC
815-40.
Such guidance provides that because the warrants do not meet the criteria for equity treatment thereunder, each warrant must be recorded as a liability. The warrant agreement contains an Alternative Issuance provision that if less than 70% of the consideration receivable by the holders of the Class A ordinary shares in the Business Combination is payable in the form of equity in the successor entity, and if the holders of the warrants properly exercises the warrants within thirty days following the public disclosure of the consummation of Business Combination by the Company, the warrant price shall be reduced by an amount equal to the difference.
v3.23.3
Commitments & Contingencies
 9 Months Ended
Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments & Contingencies
Note 10—Commitments & Contingencies
Registration Rights
The holders of the Founder Shares and Private Placement Warrants (and any Class A ordinary shares issuable upon the exercise of the Private Placement Warrants and warrants that may be issued upon conversion of the Working Capital Loans and upon conversion of the Founder Shares) will be entitled to registration rights pursuant to a registration rights and shareholder agreement to be signed prior to or on the effective date of the IPO, requiring the Company to register such securities for resale (in the case of the Founder Shares, only after conversion to Class A ordinary shares). The holders of these securities will be entitled to make up to three demands, excluding short form demands, that the Company register such securities. In addition, the holders will have certain “piggy-back” registration rights with respect to registration statements filed subsequent to the completion of a Business Combination. The Company will bear the expenses incurred in connection with the filing of any such registration statements.
Underwriting Agreement
The underwriters were granted the option to purchase up to 4,500,000 additional units at the IPO price of $10.00 within 45 days of the consummation of the IPO. The underwriters fully exercised this option at the time of the IPO. The underwriters earned a cash underwriting discount of $0.20 per Unit, or $6,900,000 in the aggregate, which was paid upon the closing of the IPO.
In addition, the underwriter will be entitled to a deferred fee of $0.35 per Unit, or $12,075,000 in the aggregate. The deferred fee will become payable to the underwriter from the amounts held in the Trust Account solely in the event that the Company completes a Business Combination, subject to the terms of the underwriting agreement.
Legal Fees
The Company has an agreement in place whereby if its legal counsel assists in the Business Combination efforts and the Business Combination is successful, it could receive up to $893,755 (the “Success Fee”). The Success Fee will only become due and payable in the event of a successful Business Combination. In accordance with ASC 805, Business Combinations, this fee will not be recorded until such time as a Business Combination is consummated.
Consulting Agreements
In April 2023, the Company entered into two agreements with each of the IPO underwriters, each to act as a capital markets advisor and as a placement agent in relation to the Business Combination. On June 9, 2023, the Company terminated the two engagement letters with one of the IPO underwriters, and such termination nullified the Company’s obligation to pay any fees under
such agreements. With respect to the other IPO underwriter, as compensation for their services, half of a placement fee of 3.0% of the gross proceeds of securities sold in the placement will be paid to the agent upon consummation of the placement (the “Placement Fee”) and $4,000,000 will be paid to the agent upon consummation of the Business Combination (the “Transaction Fee”). The Placement Fee and the Transaction fee will only become payable in the event the placement and the Business Combination are consummated, respectively, and as such nothing will be recorded until that time.
In June 2023, the Company entered into an agreement with a third-party consultant to provide advisory services in relation to the Business Combination. As compensation for those services, an advisory fee of $2,000,000 is payable in the event the transaction is consummated (the “Advisory Fee”). This fee will only become payable in the event the Business Combination is consummated and as such nothing will be recorded until that time.
Additionally, the agent and the consultant are eligible to be reimbursed in the aggregate up to $500,000 in expenses in the event the Business Combination is not consummated and $1,000,000 in the event it is consummated. As of September 30, 2023, approximately $1,161,000 has been incurred by the third parties. As the Business Combination is not yet considered probable, $500,000 of the approximately $1,161,000 is accrued in the Accounts Payable and Accrued Expenses line on the balance sheet.
v3.23.3
Recurring Fair Value Measurements
 9 Months Ended
Sep. 30, 2022
Fair Value Disclosures [Abstract]  
Recurring Fair Value Measurements
Note 11—Recurring Fair Value Measurements
The following table sets forth by level within the fair value hierarchy the Company’s assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2023 and December 31, 2022:
 
As of September 30, 2023
   
(Level 1)
     
(Level 2)
     
(Level 3)
  
Assets
                           
Marketable securities held in Trust Account
    $ 206,459,256      $ —       $ —   
Liabilities
                           
Public Warrants
      5,135,000        —         —   
Private Placement Warrants
      —         —         4,974,000  
    
 
 
     
 
 
     
 
 
  
Total
    $ 211,594,256      $ —       $ 4,974,000  
       
As of December 31, 2022
   
(Level 1)
     
(Level 2)
     
(Level 3)
  
Assets
                           
Marketable securities held in Trust Account
    $ 356,976,644      $ —       $ —   
Liabilities
                           
Public Warrants
      776,250        —         —   
Private Placement Warrants
      —         —         776,000  
    
 
 
     
 
 
     
 
 
  
Total
    $ 357,752,894      $ —       $ 776,000  
Marketable Securities held in Trust Account
As of September 30, 2023, the assets held in the Trust Account were held in a money market mutual fund. During the period from March 22, 2021 (inception) through September 30, 2023, the Company did not withdraw any of the interest income from the Trust Account to pay its tax obligations.
The composition of the Company’s fair value of held to maturity securities on September 30, 2023 and December 31, 2022 is as follows:
 
    
Fair Value as of

September 30,
2023
     
Fair Value as of

December 31,

2022
  
Money Market Mutual Fund
    $ 206,459,256      $ 356,976,644  
    
 
 
     
 
 
  
    
$
206,459,256
 
   
$
356,976,644
 
    
 
 
     
 
 
  
Warrant Liabilities
As of September 30, 2023, the Company’s warrant liabilities were valued at
 
$
10,109,000. Under the guidance in ASC
815-40,
the Public Warrants and the Private Placement Warrants do not meet the criteria for equity treatment. As such, the Public Warrants and the Private Warrants must be recorded on the balance sheet at fair value. This valuation is subject to
re-measurement
at each balance sheet date. With each
re-measurement,
the valuations will be adjusted to fair value, with the change in fair value recognized in the Company’s statement of operations.
The Company’s warrant liability is based on a valuation model utilizing management judgment and pricing inputs from observable and unobservable markets with less volume and transaction frequency than active markets. Significant deviations from these estimates and inputs could result in a material change in fair value. The fair value of the warrant liabilities is classified within Level 3 of the fair value hierarchy.
The Company established the initial fair value for the warrants on December 17, 2021, the date of the consummation of the Company’s IPO. The fair value of the Public Warrants and the Private Placement Warrants were measured using a Monte Carlo simulation model. The estimated fair value of the Public Warrants and the Private Placement Warrants were determined using Level 3 inputs. The Monte Carlo simulation utilizes certain known inputs such as the Company’s stock price, the warrant exercise price, the time to expiration and the fact that there is a call condition. The risk-free interest rate is based on the U.S. Treasury curve. The expected life of the instruments are assumed to be equivalent to their remaining contractual term plus the amount of time assumed to consummate a Business Combination. Additionally, inherent in a Monte Carlo simulation model is an assumption related to the unknown expected share-price volatility. The Company estimates the implied volatility of its warrants based on the volatility required to produce a model price equal to the market price for the Company’s Public Warrants.
The following table presents a summary of the changes in the fair value of the Warrants liabilities classified as Level 3, measured on a recurring basis.

 
 
  
Private Warrant

Liability
 
Fair Value as of December 31, 2022
  
 
776,000
 
Change in fair value
  
 
1,064,340
 
  
 
 
 
Fair value as of March 31, 2023
  
$
1,840,340
 
Change in fair value
  
 
1,617,660
 
  
 
 
 
Fair value as of June 30, 2023
  
$
3,458,000
 
Change in fair value
  
 
1,516,000
 
Fair value as of September 30, 2023
  
$
4,974,000
 

The following table provides the significant inputs into the Monte Carlo method for the fair value of the Public and Private Warrants:
 
Input
   
9/30/2023
    
12/31/2022
  
Share price
    $ 10.88     $ 10.30  
Exercise price
    $ 11.50     $ 11.50  
Risk-free rate of interest
      4.60 %      3.99 % 
Volatility
      60.02 %      10.70 % 
Term (in years)
      5.31       5.29  
Dividend yield
      —   %      —   % 
Transfers to/from Levels 1, 2 and 3 are recognized at the end of the reporting period in which a change in valuation technique or methodology occurs. The Public Warrants underlying the units sold in the IPO began separately trading on February 3, 2022 and as such were reclassified to Level 1 in the quarter ended March 31, 2022. There were no other transfers in or out of Level 3 from other levels in the fair value hierarchy for the three months ended September 30, 2023.
v3.23.3
Subsequent Events
 9 Months Ended
Sep. 30, 2022
Subsequent Events [Abstract]  
Subsequent Events
Note 12—Subsequent Events
The Company evaluated subsequent events and transactions that occurred after the balance sheet date up to the date that the financial statements were issued. Based on this review, the Company did not identify any subsequent events, other than those detailed below, that would have required adjustment or disclosure in the financial statement.
In October the Company drew down an additional $385,000 comprised of $350,000 for the October Extension payment and $35,000 for working capital purposes. This left the total $3,700,000 from the Loans entered into on March 7, 2023 and July 6, 2023 to the Company fully drawn.
v3.23.3
Significant Accounting Policies (Policies)
 9 Months Ended
Sep. 30, 2022
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation
The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the instructions to Form
10-Q
and Article 8 of Regulation
S-X
of the SEC. Certain information or footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a complete presentation of financial position, results of operations, or cash flows. In the opinion of management, the accompanying unaudited condensed financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented.
The accompanying unaudited condensed financial statements should be read in conjunction with the Company’s Annual Report on Form
10-K
for the year ended December 31, 2022, as filed with the SEC on April 24, 2023, which contains the audited financial statements and notes thereto. The financial information as of December 31, 2022, is derived from the audited financial statements presented in the Company’s Annual Report on Form
10-
K for the year ended December 31, 2022, as filed with the SEC on April 24, 2023.
Emerging Growth Company Status
Emerging Growth Company Status
The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart our Business
Start-ups
Act of 2012, (the “JOBS Act”), and it 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 its 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.
Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to
non-emerging
growth companies but any such election to opt out is irrevocable. The Company has 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, the Company, 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 the Company’s 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.
Use of Estimates
Use of Estimates
The preparation of these financial statements in conformity with GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period.
Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from those estimates.
Cash and Cash Equivalents
Cash and Cash Equivalents
The Company considers all highly liquid investments, which include short-term bank deposits that are not restricted as to withdrawal or use, and short-term debentures, with original periods to maturity not exceeding three months, to be cash equivalents. The Company had cash of $31,052 and $479,009 as of September 30, 2023 and December 31, 2022. The Company had no cash equivalents as of September 30, 2023 and December 31, 2022.
Marketable Securities Held in Trust Account
Marketable Securities Held in Trust Account
Investments in money market funds are recognized at fair value and are presented on the balance sheets at fair value at the end of each reporting period. Gains and losses resulting from the change in fair value of these securities is included in income from marketable securities held in the Trust Account in the accompanying statement of operations. The estimated fair values of marketable securities held in the Trust Account are determined using available market information. As of September 30, 2023 and December 31, 2022, the assets held in the Trust Account consisted of cash and money market mutual funds in the amount of $206,459,256 and $356,976,644, respectively.
Concentration of Credit Risk
Concentration of Credit Risk
Financial instruments that potentially subject the Company to concentrations of credit risk consist of a cash account in a financial institution, which, at times, may exceed the Federal Depository Insurance Coverage of $250,000. As of September 30, 2023, the Company has not experienced losses on this account and management believes the Company is not exposed to significant risks on such account.
Offering Costs Associated with Initial Public Offering
Offering Costs Associated with Initial Public Offering
The Company complies with the requirements of the ASC
340-10-S99-1
and SEC Staff Accounting Bulletin (“SAB”) Topic 5A — “Expenses of Offering”. Offering costs consist principally of professional and registration fees incurred through the balance sheet date that are related to the IPO. Offering costs are charged to shareholders’ equity or the statement of operations based on the relative value of the Units that consist of one Class A ordinary share and
one-half
of one redeemable warrant (“Public Warrants”) and the Private Placement Warrants to the proceeds received from the Units sold upon the completion of the IPO. Accordingly, on December 17, 2021 offering costs totaling $20,078,227 (consisting of $6,900,000 of underwriting fee, $12,075,000 of deferred underwriting fee and $1,103,227 of other offering costs) were recognized with $854,057 included in accumulated deficit as an allocation for the Public Warrants and the Private Placement Warrants. Subsequent to the IPO, upon invoice receipt, other offering costs were adjusted downwards by $94,443 to true up estimates to the actual expenses incurred.
Net Income (Loss) Per Ordinary Share
Net Income (Loss) Per Ordinary Share
The Company’s statements of operations include a presentation of net income (loss) per share for ordinary shares subject to possible redemption and applies the
two-class
method in calculating net income (loss) per share. Net income (loss) per ordinary share, basic and diluted, is calculated by dividing the
pro-
rata allocation of net income (loss) for each class, by the weighted average number of Class A and Class B
non-redeemable
ordinary shares outstanding for the period. Net income (loss) is allocated
pro-rata
between Class A redeemable and Class B
non-redeemable
shares based on their respective weighted average shares outstanding for the period. As of September 30, 2023, the potential ordinary shares for outstanding Public and Private Warrants to purchase the Company’s ordinary shares were excluded from diluted earnings per share for the three and nine months ended September 30, 2023 because they are contingently exercisable, and the contingencies have not yet been met. As a result, diluted net income per ordinary share is the same as basic net income per ordinary share for the period.
The following table reflects the calculation of basic and diluted net income per ordinary share (in dollars, except per share amounts):
 
    
For the three months ended
  
    
September 30, 2023
    
September 30, 2022
  
    
Redeemable

Class A

ordinary shares
    
Non-

Redeemable

Class B

ordinary shares
    
Redeemable

Class A

ordinary

shares
     
Non-

Redeemable

Class B

ordinary shares
  
Basic and diluted net income (loss) per share:
          
Numerator:
          
Allocation of net income (loss)
    $ (1,174,293 )    $ (532,908 )    $ 2,235,732      $ 558,933  
  
 
 
    
 
 
    
 
 
     
 
 
  
Denominator:
          
Weighted-average shares outstanding
      19,005,667       8,625,000       34,500,000        8,625,000  
  
 
 
    
 
 
    
 
 
     
 
 
  
Basic and diluted net income (loss) per share
    $ (0.06 )    $ (0.06 )    $ 0.06      $ 0.06  
  
 
 
    
 
 
    
 
 
     
 
 
  
    
For the nine months ended
  
    
September 30, 2023
    
September 30, 2022
  
    
Redeemable

Class A

ordinary shares
    
Non-

Redeemable

Class B

ordinary shares
    
Redeemable

Class A

ordinary

shares
     
Non-

Redeemable

Class B

ordinary shares
  
Basic and diluted net income (loss) per share:
          
Numerator:
          
Allocation of net income (loss)
    $ (5,501,135 )    $ (2,075,100 )    $ 19,143,250      $ 4,785,812  
  
 
 
    
 
 
    
 
 
     
 
 
  
Denominator:
          
Weighted-average shares outstanding
      22,865,061       8,625,000       34,500,000        8,625,000  
  
 
 
    
 
 
    
 
 
     
 
 
  
Basic and diluted net income (loss) per share
    $ (0.24 )    $ (0.24 )    $ 0.55      $ 0.55  
  
 
 
    
 
 
    
 
 
     
 
 
  
Fair Value of Financial Instruments
Fair Value of Financial Instruments
The fair value of the Company’s assets and liabilities approximates the carrying amounts represented in the accompanying balance sheet, primarily due to their short-term nature.
Fair Value Measurements
Fair Value Measurements
The Company applies ASC 820, which establishes a framework for measuring fair value and clarifies the definition of fair value within that framework. ASC 820 defines fair value as an exit price, which is the price that would be received for an asset or paid to transfer a liability in the Company’s principal or most advantageous market in an orderly transaction between market participants on the measurement date. The fair value hierarchy established in ASC 820 generally requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs reflect the assumptions that market participants would use in pricing the asset or liability and are developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the entity’s own assumptions based on market data and the entity’s judgments about the assumptions that market participants would use in pricing the asset or liability and are to be developed based on the best information available in the circumstances.
Level 1—Assets and liabilities with unadjusted, quoted prices listed on active market exchanges. Inputs to the fair value measurement are observable inputs, such as quoted prices in active markets for identical assets or liabilities.
Level 2—Inputs to the fair value measurement are determined using prices for recently traded assets and liabilities with similar underlying terms, as well as direct or indirect observable inputs, such as interest rates and yield curves that are observable at commonly quoted intervals.
Level 3—Inputs to the fair value measurement are unobservable inputs, such as estimates, assumptions, and valuation techniques when little or no market data exists for the assets or liabilities.
In some circumstances, the inputs used to measure fair value might be categorized within different levels of the fair value hierarchy. In those instances, the fair value measurement is categorized in its entirety in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement.
Derivative Financial Instruments
Derivative Financial Instruments
The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives in accordance with ASC Topic 815, “Derivatives and Hedging”. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value on the issuance date and is
then re-valued at
each reporting date, with changes in the fair value reported in the statement of operations. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative liabilities are classified in the balance sheet as current
or non-current based
on whether or
not net-cash settlement
or conversion of the instrument could be required within 12 months of the balance sheet date.
The 33,950,000 warrants issued in connection with the Initial Public Offering and the Private Placement (including the 17,250,000 Public Warrants included in the Units and the 16,700,000 Private Placement Warrants) were recognized as derivative liabilities in accordance with ASC 815. Accordingly, the Company recognizes the warrant instruments as liabilities at fair value and adjust the instruments to fair value at each reporting period. The liabilities are subject
to re-measurement at
each balance sheet date until exercised. The determination of the fair value of the warrant liability may be subject to change as more current information becomes available and accordingly the actual results could differ significantly. Derivative warrant liabilities are classified
as non-current liabilities
as their liquidation is not reasonably expected to require the use of current assets or require the creation of current liabilities.
Ordinary Shares Subject to Possible Redemption
Ordinary Shares Subject to Possible Redemption
The Company accounts for its 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 the Company’s control) are classified as temporary equity. At all other times, ordinary shares are classified as shareholders’ equity. The Company’s Class A ordinary shares feature certain redemption rights that are considered to be outside of the Company’s control and subject to occurrence of uncertain future events.
Accordingly, as of September 30, 2023 and December 31, 2022, Class A ordinary shares subject to possible redemption are presented at redemption value as temporary equity, outside of the shareholders’ deficit section of the Company’s balance sheet.
Immediately upon the closing of the IPO, the Company recognized the accretion from initial book value to redemption amount. Increases or decreases in the carrying amount of redeemable ordinary shares are affected by charges against
additional paid-in capital
and accumulated deficit.
As of September 30, 2023 and December 31, 2022, the Class A ordinary shares subject to possible redemption reflected in the balance sheet are reconciled in the following table:
 
    
September 30, 2023
     
December 31, 2022
  
As of beginning of the period
    $ 356,976,644      $ 351,900,000  
Less:
                  
Redemptions as a result of Extraordinary General Meeting
      (161,606,370 )          
Plus:
                  
Extension Contribution
      2,450,000        —    
Remeasurement of carrying value to redemption value
      8,638,982        5,076,644  
    
 
 
     
 
 
  
Class A ordinary shares subject to possible redemption
    $ 206,459,256      $ 356,976,644  
    
 
 
     
 
 
  
Income taxes
Income taxes
The Company accounts for income taxes in accordance with the provisions of ASC Topic 740, “Income Taxes” (“ASC 740”). Under the asset and liability, method as required by this accounting standard, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the carrying amounts of assets and liabilities in the financial statements and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to the period when assets are realized or liabilities are settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statement of operations in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities.
ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts.
There were no unrecognized tax benefits as of September 30, 2023. The Company’s management determined that the Cayman Islands is the Company’s only major tax jurisdiction. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. As of September 30, 2023, there were no unrecognized tax benefits, and no amounts were accrued for the payment of interest and penalties.
There is currently no taxation imposed by the Government of the Cayman Islands. In accordance with Cayman income tax regulations, income taxes are not levied on the Company. Consequently, income taxes are not reflected in the Company’s financial statements. The Company’s management does not expect that the total amount of unrecognized tax benefits will materially change over the next twelve months.
Recent Accounting Pronouncements
Recent Accounting Pronouncements
In August 2020, the FASB issued ASU
No. 2020-06,
“Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity”. The update simplifies the accounting for convertible instruments by removing certain separation models in Subtopic
470-20,
Debt—Debt with Conversion and Other Options for convertible instruments and introducing other changes. As a result of ASU
No. 2020-06,
more convertible debt instruments will be accounted for as a single liability measured at amortized cost and more convertible preference shares will be accounted for as a single equity instrument measured at historical cost, as long as no features require bifurcation and recognition as derivatives. The amendments are effective for smaller reporting companies for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Company adopted ASU
No. 2020-06
upon its incorporation. The impact to the balance sheet, statements of operations and cash flows was not material.
Management does not believe that any other recently issued, but not effective, accounting standards, if currently adopted, would have a material effect on the Company’s financial statements.
v3.23.3
Significant Accounting Policies (Tables)
 9 Months Ended
Sep. 30, 2022
Accounting Policies [Abstract]  
Summary of Basic And Diluted Net Income Per Ordinary Share
The following table reflects the calculation of basic and diluted net income per ordinary share (in dollars, except per share amounts):
 
    
For the three months ended
  
    
September 30, 2023
    
September 30, 2022
  
    
Redeemable

Class A

ordinary shares
    
Non-

Redeemable

Class B

ordinary shares
    
Redeemable

Class A

ordinary

shares
     
Non-

Redeemable

Class B

ordinary shares
  
Basic and diluted net income (loss) per share:
          
Numerator:
          
Allocation of net income (loss)
    $ (1,174,293 )    $ (532,908 )    $ 2,235,732      $ 558,933  
  
 
 
    
 
 
    
 
 
     
 
 
  
Denominator:
          
Weighted-average shares outstanding
      19,005,667       8,625,000       34,500,000        8,625,000  
  
 
 
    
 
 
    
 
 
     
 
 
  
Basic and diluted net income (loss) per share
    $ (0.06 )    $ (0.06 )    $ 0.06      $ 0.06  
  
 
 
    
 
 
    
 
 
     
 
 
  
    
For the nine months ended
  
    
September 30, 2023
    
September 30, 2022
  
    
Redeemable

Class A

ordinary shares
    
Non-

Redeemable

Class B

ordinary shares
    
Redeemable

Class A

ordinary

shares
     
Non-

Redeemable

Class B

ordinary shares
  
Basic and diluted net income (loss) per share:
          
Numerator:
          
Allocation of net income (loss)
    $ (5,501,135 )    $ (2,075,100 )    $ 19,143,250      $ 4,785,812  
  
 
 
    
 
 
    
 
 
     
 
 
  
Denominator:
          
Weighted-average shares outstanding
      22,865,061       8,625,000       34,500,000        8,625,000  
  
 
 
    
 
 
    
 
 
     
 
 
  
Basic and diluted net income (loss) per share
    $ (0.24 )    $ (0.24 )    $ 0.55      $ 0.55  
  
 
 
    
 
 
    
 
 
     
 
 
  
Summary of Class A Ordinary Shares Subject To Possible Redemption
As of September 30, 2023 and December 31, 2022, the Class A ordinary shares subject to possible redemption reflected in the balance sheet are reconciled in the following table:
 
    
September 30, 2023
     
December 31, 2022
  
As of beginning of the period
    $ 356,976,644      $ 351,900,000  
Less:
                  
Redemptions as a result of Extraordinary General Meeting
      (161,606,370 )          
Plus:
                  
Extension Contribution
      2,450,000        —    
Remeasurement of carrying value to redemption value
      8,638,982        5,076,644  
    
 
 
     
 
 
  
Class A ordinary shares subject to possible redemption
    $ 206,459,256      $ 356,976,644  
    
 
 
     
 
 
  
v3.23.3
Recurring Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2022
Fair Value Disclosures [Abstract]  
Summary of Fair Value Assets and Liabilities
The following table sets forth by level within the fair value hierarchy the Company’s assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2023 and December 31, 2022:
 
As of September 30, 2023
   
(Level 1)
     
(Level 2)
     
(Level 3)
  
Assets
                           
Marketable securities held in Trust Account
    $ 206,459,256      $ —       $ —   
Liabilities
                           
Public Warrants
      5,135,000        —         —   
Private Placement Warrants
      —         —         4,974,000  
    
 
 
     
 
 
     
 
 
  
Total
    $ 211,594,256      $ —       $ 4,974,000  
       
As of December 31, 2022
   
(Level 1)
     
(Level 2)
     
(Level 3)
  
Assets
                           
Marketable securities held in Trust Account
    $ 356,976,644      $ —       $ —   
Liabilities
                           
Public Warrants
      776,250        —         —   
Private Placement Warrants
      —         —         776,000  
    
 
 
     
 
 
     
 
 
  
Total
    $ 357,752,894      $ —       $ 776,000  
Summary of Fair Value of Held To Maturity Securities
The composition of the Company’s fair value of held to maturity securities on September 30, 2023 and December 31, 2022 is as follows:
 
    
Fair Value as of

September 30,
2023
     
Fair Value as of

December 31,

2022
  
Money Market Mutual Fund
    $ 206,459,256      $ 356,976,644  
    
 
 
     
 
 
  
    
$
206,459,256
 
   
$
356,976,644
 
    
 
 
     
 
 
  
Summary of Fair Value of Warrants Liabilities
The following table presents a summary of the changes in the fair value of the Warrants liabilities classified as Level 3, measured on a recurring basis.

 
 
  
Private Warrant

Liability
 
Fair Value as of December 31, 2022
  
 
776,000
 
Change in fair value
  
 
1,064,340
 
  
 
 
 
Fair value as of March 31, 2023
  
$
1,840,340
 
Change in fair value
  
 
1,617,660
 
  
 
 
 
Fair value as of June 30, 2023
  
$
3,458,000
 
Change in fair value
  
 
1,516,000
 
Fair value as of September 30, 2023
  
$
4,974,000
 
Summary of Fair Value Measurement Inputs and Valuation Techniques
The following table provides the significant inputs into the Monte Carlo method for the fair value of the Public and Private Warrants:
 
Input
   
9/30/2023
    
12/31/2022
  
Share price
    $ 10.88     $ 10.30  
Exercise price
    $ 11.50     $ 11.50  
Risk-free rate of interest
      4.60 %      3.99 % 
Volatility
      60.02 %      10.70 % 
Term (in years)
      5.31       5.29  
Dividend yield
      —   %      —   % 
v3.23.3
Organization and Business Operation - Additional Information (Detail) - USD ($)
 9 Months Ended
Mar. 14, 2023
Dec. 17, 2021
Sep. 30, 2023
Sep. 30, 2022
Jul. 06, 2023
Mar. 17, 2023
Mar. 07, 2023
Feb. 22, 2023
Dec. 31, 2022
Organization And Plan Of Operation [Line Items]                  
Entity Incorporation, Date of Incorporation     Mar. 22, 2021            
Class of warrants and rights issued during the period   33,950,000              
Restricted investments term   185 days              
Due from Banks     $ 31,052            
Working capital (deficit)     10,324,047            
Working capital loans                 $ 0
Percentage of public shares aggregate to redeeming restriction   15.00%              
Assets held-in-trust $ 198,200,000   206,459,256           $ 356,976,644
Net Tangible Asset 5,000,001                
Percentage of outstanding shares               79.10%  
Extension Contribution     2,450,000 $ 0          
Outstanding loans     3,315,000     $ 350,000      
Unsecured Debt [Member]                  
Organization And Plan Of Operation [Line Items]                  
Unsecured loan, principal amount         $ 1,700,000        
Interest Income [Member]                  
Organization And Plan Of Operation [Line Items]                  
Interest receivable on investments held in trust account     8,638,982            
Private Placement Warrants [Member]                  
Organization And Plan Of Operation [Line Items]                  
Class of warrants and rights issued during the period   16,700,000              
Sponsor [Member]                  
Organization And Plan Of Operation [Line Items]                  
Outstanding loans     $ 1,050,000            
Contribution to trust account made by the sponsor $ 350,000                
Share price $ 0.03                
Sponsor [Member] | Unsecured Debt [Member]                  
Organization And Plan Of Operation [Line Items]                  
Debt Instrument Face Amount         $ 3,700,000        
Sponsor [Member] | Convertible Unsecured Loan [Member]                  
Organization And Plan Of Operation [Line Items]                  
Debt Instrument Face Amount             $ 2,000,000    
Debt instrument conversion price             $ 1    
Sponsor [Member] | Private Placement Warrants [Member]                  
Organization And Plan Of Operation [Line Items]                  
Class of warrants and rights issued during the period   16,700,000              
Class of warrants and rights issued price per warrant   $ 1              
Proceeds from Issuance of Private Placement   $ 16,700,000              
Common Class A [Member]                  
Organization And Plan Of Operation [Line Items]                  
Temporary Equity Shares Outstanding 34,500,000   19,005,667           34,500,000
Temproary equity redemption price, per share $ 10.43   $ 10.86           $ 10.35
Common stockShares Outstanding 19,005,667   0           0
Cash Withdrawn from Trust Account for Redemption Of Temporary Equity $ 161,600,000                
Common Class A [Member] | Extension Amendment Proposal [Member]                  
Organization And Plan Of Operation [Line Items]                  
Temporary Equity Shares Outstanding 15,494,333                
Common Class A [Member] | IPO [Member]                  
Organization And Plan Of Operation [Line Items]                  
Stock shares issued during the period shares   34,500,000              
Shares Issued, Price Per Share   $ 10              
Proceeds from Issuance Initial Public Offering   $ 345,000,000              
Per share value of restricted investments   $ 10.2              
Common Class A [Member] | IPO [Member] | Maximum [Member]                  
Organization And Plan Of Operation [Line Items]                  
Initial investment held in the trust account   $ 351,900,000              
Common Class A [Member] | Over-Allotment Option [Member]                  
Organization And Plan Of Operation [Line Items]                  
Stock shares issued during the period shares   4,500,000              
Common Class A and B [Member]                  
Organization And Plan Of Operation [Line Items]                  
Common stockShares Outstanding               34,372,929  
v3.23.3
Significant Accounting Policies - Additional Information (Detail) - USD ($)
 9 Months Ended
Dec. 17, 2021
Sep. 30, 2023
Mar. 14, 2023
Dec. 31, 2022
Cash   $ 31,052   $ 479,009
Cash Equivalents   0   0
Cash, FDIC Insured Amount   250,000    
Accumulated deficit   (32,508,910)   (13,843,693)
Marketable securities held in Trust Account   206,459,256 $ 198,200,000 $ 356,976,644
Accrued for interest and penalties   $ 0    
Effective Income Tax Rate Reconciliation, Percent   50.00%    
Unrecognized Tax Benefits   $ 0    
Class of warrant or right, outstanding   33,950,000    
Other Offering Cost Adjustments $ 94,443      
Private Placement Warrants [Member]        
Class of warrant or right, outstanding   16,700,000    
Public Warrants [Member]        
Class of warrant or right, outstanding   17,250,000    
IPO And Private Placement [Member] | Warrant [Member]        
Offering costs 20,078,227      
Underwriting fee 6,900,000      
Accumulated deficit 854,057      
Deferred underwriting fee 12,075,000      
Other offering costs $ 1,103,227      
v3.23.3
Significant Accounting Policies - Summary of Basic And Diluted Net Income Per Ordinary Share (Detail) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Redeemable Class A ordinary shares [Member]        
Numerator:        
Allocation of net income (loss) $ (1,174,293) $ 2,235,732 $ (5,501,135) $ 19,143,250
Denominator:        
Weighted-average shares outstanding, Basic 19,005,667 34,500,000 22,865,061 34,500,000
Weighted-average shares outstanding, Diluted 19,005,667 34,500,000 22,865,061 34,500,000
Basic net income (loss) per share , Basic $ (0.06) $ 0.06 $ (0.24) $ 0.55
Diluted net income (loss) per share, Diluted $ (0.06) $ 0.06 $ (0.24) $ 0.55
Non-Redeemable Class B ordinary shares [Member]        
Numerator:        
Allocation of net income (loss) $ (532,908) $ 558,933 $ (2,075,100) $ 4,785,812
Denominator:        
Weighted-average shares outstanding, Basic 8,625,000 8,625,000 8,625,000 8,625,000
Weighted-average shares outstanding, Diluted 8,625,000 8,625,000 8,625,000 8,625,000
Basic net income (loss) per share , Basic $ (0.06) $ 0.06 $ (0.24) $ 0.55
Diluted net income (loss) per share, Diluted $ (0.06) $ 0.06 $ (0.24) $ 0.55
v3.23.3
Significant Accounting Policies - Summary of Class A Ordinary Shares Subject To Possible Redemption (Detail) - USD ($)
 9 Months Ended 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Dec. 31, 2022
Plus:      
Extension Contribution $ 2,450,000 $ 0  
Class A Common Stock Subject To Possible Redemption [Member]      
As of beginning of the period 356,976,644 $ 351,900,000 $ 351,900,000
Less:      
Redemptions as a result of Extraordinary General Meeting (161,606,370)    
Plus:      
Extension Contribution 2,450,000   0
Remeasurement of carrying value to redemption value 8,638,982   5,076,644
Class A ordinary shares subject to possible redemption $ 206,459,256   $ 356,976,644
v3.23.3
Initial Public Offering - Additional Information (Detail) - USD ($)
Dec. 17, 2021
Sep. 30, 2023
Dec. 31, 2022
Initial Public Offering [Line Items]      
Accumulated deficit   $ (32,508,910) $ (13,843,693)
IPO And Private Placement [Member] | Warrant [Member]      
Initial Public Offering [Line Items]      
Additional Paid-in Capital $ 19,224,170    
Offering costs 20,078,227    
Underwriting fee 6,900,000    
Deferred underwriting fee 12,075,000    
Other offering costs 1,103,227    
Accumulated deficit $ 854,057    
Common Class A [Member] | IPO [Member]      
Initial Public Offering [Line Items]      
Stock shares issued during the period shares 34,500,000    
Shares Issued, Price Per Share $ 10    
Per share value of restricted investments $ 10.2    
Common Class A [Member] | IPO [Member] | Maximum [Member]      
Initial Public Offering [Line Items]      
Payment to acquire restricted investments $ 351,900,000    
Common Class A [Member] | Over-Allotment Option [Member]      
Initial Public Offering [Line Items]      
Stock shares issued during the period shares 4,500,000    
Public Warrants [Member] | Common Class A [Member]      
Initial Public Offering [Line Items]      
Class of Warrant or Right, Exercise Price of Warrants or Rights $ 11.5    
v3.23.3
Potential Business Combination Agreement - Additional information (Detail) - USD ($)
Apr. 25, 2023
Sep. 30, 2023
Business Acquisition [Line Items]    
Cash Receivable Upon Business Combination Transaction $ 10,000,000  
Percentage of shares issued and outstanding 97.00%  
Number Of Trading Days For Determining The Share Price 20 days  
Number Of Consecutive Trading Days For Determining The Share Price 30 days  
Class of Warrant or Right, Outstanding   33,950,000
Pubco Ordinary Shares [Member]    
Business Acquisition [Line Items]    
Shares, Issued 23,577,550  
Additional Shares Issued 1,277,550  
Share Price $ 12  
Business Combination Agreement [Member]    
Business Acquisition [Line Items]    
Cash Receivable Upon Business Combination Transaction $ 10,000,000  
Sponsor Support Agreement [Member]    
Business Acquisition [Line Items]    
Percentage Of Shares Held By Subsidiary 50.00%  
Maximum Amount Payable To Purchase Private Placement Securities $ 50,000,000  
Common Stock, Value, Issued $ 0  
Common Stock, Shares, Outstanding 2,555,100  
Class of Warrant or Right, Outstanding 2,050,000  
Expenses Reimbursable $ 20,000,000  
v3.23.3
Private Placement Warrants - Additional Information (Detail) - USD ($)
 9 Months Ended
Dec. 17, 2021
Sep. 30, 2023
Private Placement Warrants [Line Items]    
Class of warrants and rights issued during the period 33,950,000  
Private Placement [Member] | Common Class A [Member]    
Private Placement Warrants [Line Items]    
Class of Warrant or Right, Exercise Price of Warrants or Rights   $ 11.5
Private Placement [Member] | Sponsor [Member]    
Private Placement Warrants [Line Items]    
Class of warrants and rights issued during the period   16,700,000
Class of warrants and rights issued price per warrant   $ 1
Proceeds from Issuance of Private Placement   $ 16,700,000
v3.23.3
Related Party Transactions - Additional Information (Detail) - USD ($)
 9 Months Ended
Nov. 03, 2021
Apr. 01, 2021
Sep. 30, 2023
Jul. 31, 2023
Jul. 06, 2023
May 31, 2023
Apr. 30, 2023
Mar. 31, 2023
Mar. 17, 2023
Mar. 14, 2023
Mar. 07, 2023
Related Party Transaction [Line Items]                      
Threshold consecutive trading days     30 days                
Outstanding loans     $ 3,315,000           $ 350,000    
Unsecured Debt [Member]                      
Related Party Transaction [Line Items]                      
Unsecured loan, principal amount         $ 1,700,000            
Loans Payable [Member]                      
Related Party Transaction [Line Items]                      
Outstanding loans     $ 2,100,000                
Working Capital Loans [Member]                      
Related Party Transaction [Line Items]                      
Outstanding loans               $ 3,315,000      
Sponsor and Directors and Executive Officers [Member]                      
Related Party Transaction [Line Items]                      
Restrictions on transfer period of time after business combination completion     1 year                
Share price     $ 12                
Threshold trading days     20 days                
Threshold consecutive trading days     30 days                
Threshold Period After Business Combination in Which Specified Trading Days Within Any Specified Trading Day Period Commences     120 days                
Sponsor [Member]                      
Related Party Transaction [Line Items]                      
Share price                   $ 0.03  
Outstanding loans     $ 1,050,000                
Sponsor [Member] | Unsecured Debt [Member]                      
Related Party Transaction [Line Items]                      
Debt instrument face value         $ 3,700,000            
Sponsor [Member] | Convertible Unsecured Loan [Member]                      
Related Party Transaction [Line Items]                      
Debt instrument face value                     $ 2,000,000
Debt instrument conversion price per share                     $ 1
Sponsor [Member] | Working Capital Loans [Member]                      
Related Party Transaction [Line Items]                      
Working capital loans convertible into warrants     $ 2,000,000                
Debt instrument conversion price per share     $ 1                
Outstanding loans     $ 865,000 $ 265,000   $ 350,000 $ 250,000        
Common Class B [Member]                      
Related Party Transaction [Line Items]                      
Stock issued during period value shares for services   8,625,000                  
Stock issued during period value issued for services   $ 25,000                  
Common Class B [Member] | Transfer of Founder Shares [Member]                      
Related Party Transaction [Line Items]                      
Sale of stock price per share $ 0.12                    
Common stock excess fair value of shares issued over the nominal purchase price $ 5,292,600                    
Common Class B [Member] | Baroness Ruby McGregor Smith [Member] | Transfer of Founder Shares [Member]                      
Related Party Transaction [Line Items]                      
Founder shares transferred during period 718,750                    
Common Class B [Member] | Peter McKellar [Member] | Transfer of Founder Shares [Member]                      
Related Party Transaction [Line Items]                      
Founder shares transferred during period 479,167                    
Common Class B [Member] | Pam Jackson [Member] | Transfer of Founder Shares [Member]                      
Related Party Transaction [Line Items]                      
Founder shares transferred during period 30,000                    
Common Class B [Member] | Laurence Ponchaut [Member] | Transfer of Founder Shares [Member]                      
Related Party Transaction [Line Items]                      
Founder shares transferred during period 30,000                    
Common Class B [Member] | Adah Almutairi [Member] | Transfer of Founder Shares [Member]                      
Related Party Transaction [Line Items]                      
Founder shares transferred during period 30,000                    
v3.23.3
Class A Ordinary Shares Subject to Possible Redemption - Additional Information (Detail) - Common Class A [Member] - $ / shares
 9 Months Ended 12 Months Ended
Mar. 14, 2023
Sep. 30, 2023
Dec. 31, 2022
Temporary Equity [Line Items]      
Common Stock, Shares Authorized   400,000,000 400,000,000
Common Stock, Shares, Issued   0 0
Common Stock, Shares, Outstanding 19,005,667 0 0
Common Stock, Par or Stated Value Per Share   $ 0.0001 $ 0.0001
Common stock, Voting Rights   one vote one vote
Temporary Equity, Shares Outstanding 34,500,000 19,005,667 34,500,000
Stock issued during period, stock options exercised 15,494,333    
Temporary Equity, Redemption Price Per Share $ 10.43 $ 10.86 $ 10.35
v3.23.3
Shareholders' Deficit - Additional Information (Detail) - $ / shares
 9 Months Ended
Sep. 30, 2023
Mar. 14, 2023
Dec. 31, 2022
Class of Stock [Line Items]      
Preferred Stock, Par or Stated Value Per Share $ 0.0001   $ 0.0001
Preferred Stock, Shares Authorized 1,000,000   1,000,000
Preferred Stock, Shares Issued 0   0
Preferred Stock, Shares Outstanding 0   0
Threshold consecutive trading days 30 days    
Common Class A [Member]      
Class of Stock [Line Items]      
Common Stock, Par or Stated Value Per Share $ 0.0001   $ 0.0001
Common Stock, Shares Authorized 400,000,000   400,000,000
Common Stock ,Shares Issued 0   0
Common stock, Shares Outstanding 0 19,005,667 0
Common Class A [Member] | Conversion of Class B Common Stock to Class A Common Stock [Member]      
Class of Stock [Line Items]      
Stock conversion basis on consummation of the initial business combination one-for-one    
Threshold trading days 10 days    
Threshold consecutive trading days 15 days    
Share price $ 12    
Percentage of common stock outstanding 20.00%    
Common Class B [Member]      
Class of Stock [Line Items]      
Common Stock, Par or Stated Value Per Share $ 0.0001   $ 0.0001
Common Stock, Shares Authorized 40,000,000   40,000,000
Common Stock ,Shares Issued 8,625,000   8,625,000
Common stock, Shares Outstanding 8,625,000   8,625,000
Common Class B [Member] | Conversion of Class B Common Stock to Class A Common Stock [Member]      
Class of Stock [Line Items]      
Percentage of stock conversion on consummation of the initial business combination 50.00%    
Percentage of conversion on post consummation of business combination 50.00%    
v3.23.3
Warrant Liabilities - Additional Information (Detail) - $ / shares
 9 Months Ended
Dec. 17, 2021
Sep. 30, 2023
Class of Warrant or Right [Line Items]    
Threshold consecutive trading days   30 days
Adjustment of exercise price of warrants based on market value and newly issued price   115.00%
Class of warrants and rights issued during the period 33,950,000  
Common Class A [Member]    
Class of Warrant or Right [Line Items]    
Percentage of consideration receivable in successor entity equity 70.00%  
Public Warrants [Member]    
Class of Warrant or Right [Line Items]    
Period to exercise warrants after business combination   30 days
Period to file registration statement after Business Combination   20 days
Period for registration statement to become effective   60 days
Percentage of gross proceeds on total equity proceeds   60.00%
Threshold trading days determining volume weighted average price   20 days
Class of warrants and rights issued during the period 17,250,000  
Public Warrants [Member] | Common Class A [Member]    
Class of Warrant or Right [Line Items]    
Threshold issue price per share   $ 9.2
Public Warrants [Member] | Exceeds $18.00 [Member]    
Class of Warrant or Right [Line Items]    
Warrant redemption price   $ 0.01
Minimum notice period for redemption of warrants   30 days
Share price   $ 18
Threshold trading days   20 days
Threshold number of business days before sending notice of redemption to warrant holders   3 days
Stock price trigger for redemption of public warrants   $ 18
Adjustment of redemption price of stock based on market value and newly issued price   180
Public Warrants [Member] | Exceeds $10.00 [Member]    
Class of Warrant or Right [Line Items]    
Warrant redemption price   $ 0.1
Minimum notice period for redemption of warrants   30 days
Share price   $ 10
Stock price trigger for redemption of public warrants   10
Adjustment of redemption price of stock based on market value and newly issued price   $ 100
Private Placement Warrants [Member]    
Class of Warrant or Right [Line Items]    
Period to exercise warrants after business combination   30 days
Class of warrants and rights issued during the period 16,700,000  
v3.23.3
Commitments & Contingencies - Additional Information (Detail) - USD ($)
 1 Months Ended 9 Months Ended
Jun. 09, 2023
Dec. 17, 2021
Jun. 30, 2023
Sep. 30, 2023
Other Commitments [Line Items]        
Business Combination Legal Success Fee Payable       $ 893,755
Business Combination Not Consummated [Member] | Accounts Payable and Accrued Liabilities [Member]        
Other Commitments [Line Items]        
Reimbursement of expenses payable       500,000
Underwriting Agreement [Member]        
Other Commitments [Line Items]        
Transaction Fees for business consummation $ 4,000,000      
Underwriting Agreement [Member] | Over-Allotment Option [Member]        
Other Commitments [Line Items]        
Common stock shares subscribed but unissued   4,500,000    
Shares Issued, Price Per Share   $ 10    
Term of option for underwriters to purchase additional Units to cover over-allotments   45 days    
Cash underwriting discount per unit   $ 0.2    
Payment of cash underwriting discount   $ 6,900,000    
Deferred underwriting discount per unit   $ 0.35    
Underwriting discount incurred but not paid   $ 12,075,000    
Consulting Agreements [Member]        
Other Commitments [Line Items]        
Percentage of gross proceeds of securities sold to pay placement fee to agent 3.00%      
Advisory fee in relation to business combination     $ 2,000,000  
Actual expenses incurred by the agent and consultant       $ 1,161,000
Consulting Agreements [Member] | Business Combination Not Consummated [Member]        
Other Commitments [Line Items]        
Maximum reimbursement of expenses     500,000  
Consulting Agreements [Member] | Business Combination Consummated [Member]        
Other Commitments [Line Items]        
Maximum reimbursement of expenses     $ 1,000,000  
v3.23.3
Recurring Fair Value Measurements - Summary of Fair Value Assets and Liabilities (Detail) - USD ($)
Sep. 30, 2023
Dec. 31, 2022
Assets    
Marketable securities held in Trust Account $ 206,459,256 $ 356,976,644
Liabilities    
Derivative Liability 10,109,000  
Recurring [Member] | Level 1 [Member]    
Assets    
Marketable securities held in Trust Account 206,459,256 356,976,644
Liabilities    
Total 211,594,256 357,752,894
Recurring [Member] | Level 1 [Member] | Public Warrants [Member]    
Liabilities    
Derivative Liability $ 5,135,000 $ 776,250
Derivative Liability, Statement of Financial Position [Extensible Enumeration] Derivative Liability, Noncurrent Derivative Liability, Noncurrent
Recurring [Member] | Level 1 [Member] | Private Placement Warrants [Member]    
Liabilities    
Derivative Liability $ 0 $ 0
Recurring [Member] | Level 2 [Member]    
Assets    
Marketable securities held in Trust Account 0 0
Liabilities    
Total 0 0
Recurring [Member] | Level 2 [Member] | Public Warrants [Member]    
Liabilities    
Derivative Liability $ 0 $ 0
Derivative Liability, Statement of Financial Position [Extensible Enumeration] Derivative Liability, Noncurrent Derivative Liability, Noncurrent
Recurring [Member] | Level 2 [Member] | Private Placement Warrants [Member]    
Liabilities    
Derivative Liability $ 0 $ 0
Recurring [Member] | Level 3 [Member]    
Assets    
Marketable securities held in Trust Account 0 0
Liabilities    
Total 4,974,000 776,000
Recurring [Member] | Level 3 [Member] | Public Warrants [Member]    
Liabilities    
Derivative Liability $ 0 $ 0
Derivative Liability, Statement of Financial Position [Extensible Enumeration] Derivative Liability, Noncurrent Derivative Liability, Noncurrent
Recurring [Member] | Level 3 [Member] | Private Placement Warrants [Member]    
Liabilities    
Derivative Liability $ 4,974,000 $ 776,000
v3.23.3
Recurring Fair Value Measurements - Summary of Fair Value of Held To Maturity Securities (Detail) - USD ($)
Sep. 30, 2023
Dec. 31, 2022
Schedule of Held-to-maturity Securities [Line Items]    
Fair value $ 206,459,256 $ 356,976,644
Money Market Mutual Fund [Member]    
Schedule of Held-to-maturity Securities [Line Items]    
Fair value $ 206,459,256 $ 356,976,644
v3.23.3
Recurring Fair Value Measurements - Summary of Fair Value of Warrants Liabilities (Detail) - Private Placement Warrants [Member] - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Sep. 30, 2023
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Fair value beginning balance $ 3,458,000 $ 1,840,340 $ 776,000 $ 776,000
Change in fair value 1,516,000 1,617,660 1,064,340  
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]       Fair Value Adjustment of Warrants
Fair value ending balance $ 4,974,000 $ 3,458,000 $ 1,840,340 $ 4,974,000
v3.23.3
Recurring Fair Value Measurements - Summary of Fair Value Measurement Inputs and Valuation Techniques (Detail) - Level 3 [Member]
Sep. 30, 2023
yr
Dec. 31, 2022
yr
Share price [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Measurement inputs 10.88 10.3
Exercise price [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Measurement inputs 11.5 11.5
Risk-free rate of interest [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Measurement inputs 4.6 3.99
Volatility [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Measurement inputs 60.02 10.7
Term (in years) [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Measurement inputs 5.31 5.29
Dividend yield [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Measurement inputs 0 0
v3.23.3
Recurring Fair Value Measurements - Additional Information (Detail)
 9 Months Ended
Sep. 30, 2023
USD ($)
Fair Value Disclosures [Abstract]  
Warrant liabilities $ 10,109,000
FairValue Derivative Asset Liability Measured On Recurring , Transfers Net $ 0
v3.23.3
Subsequent Events - Additional Information (Detail) - USD ($)
Oct. 31, 2023
Sep. 30, 2023
Mar. 17, 2023
Dec. 31, 2022
Subsequent Event [Line Items]        
Outstanding loans   $ 3,315,000 $ 350,000  
Working Capital Loans       $ 0
Subsequent Event [Member]        
Subsequent Event [Line Items]        
Debt instrument face value $ 3,700,000      
Outstanding loans 350,000      
Long-Term Debt 385,000      
Working Capital Loans $ 35,000      
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