Item
1. Business.
Overview
We are a blank
check company incorporated as a Delaware corporation and formed for the purpose of effecting a merger, share exchange, asset acquisition,
share purchase, reorganization or similar business combination with one or more businesses, which we refer to throughout this prospectus
as our initial business combination.
Initial Public Offering
On January 20, 2021, we consummated
our initial public offering of 27,500,000 units, including 3,750,000 units issued pursuant to the exercise of the underwriters’
over-allotment option. Each unit consists of one share of Class A common stock, and one-half of one redeemable warrant of the Company,
with each whole warrant entitling the holder thereof to purchase one share of Class A common stock for $11.50 per whole share. The units
were sold at a price of $10.00 per unit, generating gross proceeds to the Company of $275,000,000.
Simultaneously with the closing
of the initial public offering, we completed the private sale of an aggregate of 7,500,000 warrants to our sponsor at a purchase price
of $1.00 per private placement warrant, generating gross proceeds of $7,500,000.
A total of $275,000,000, comprised
of $267,500,000 of the proceeds from the initial public offering and $7,500,000 of the proceeds of the sale of the private placement warrants
was placed in the trust account maintained by Continental Stock Transfer & Trust Company, acting as trustee.
It is the job of our sponsor
and management team to complete our initial business combination. Our management team is led by Jason Ader, our Chief Executive Officer,
and John Lewis, our Chief Financial Officer, who have many years of experience in driving transformative change in businesses in order
to create value for stockholders. We must complete our initial business combination by January 20, 2023, 24 months from the closing of
our initial public offering. If our initial business combination is not consummated by January 20, 2023, then our existence will terminate,
and we will distribute all amounts in the trust account.
OMI Business Combination
On
October 15, 2021, the Company entered into the OMI Merger and Share Acquisition Agreement, which was amended on February 15, 2022.
The
OMI Merger and Share Acquisition Agreement provides that, among other things and upon the terms and subject to the conditions thereof,
the following transactions will occur, following the Reorganization and the Subscription (each as defined below):
(a)
at the closing of the transactions contemplated by the OMI Merger and Share Acquisition Agreement (the “Closing”), the OMI
Merger; and
(b)
as a result of the OMI Merger, among other things, all outstanding shares of common stock of the Company immediately prior to Closing
(except with respect to certain specified shares) will be converted into and shall for all purposes represent only the right to subscribe
for and purchase, pursuant to a subscription agreement (the “Subscription Agreement”) and a letter of transmittal and subscription
confirmation, one validly issued, fully paid and non-assessable common share of OMI upon the exercise of such subscription
right.
The
board of directors (“Board”) has unanimously (a) approved and declared advisable the OMI Merger and Share Acquisition
Agreement and the OMI Business Combination and (b) resolved to recommend approval of the OMI Merger and Share Acquisition Agreement
and related matters by the stockholders of the Company.
The Reorganization
Prior
to the Closing, TRA will effect a reorganization of parts of its business (the “Reorganization”) in accordance with the OMI
Merger and Share Acquisition Agreement. Pursuant to the Reorganization, among other matters, OMI will become a direct subsidiary of TRA,
TRLEI will become a wholly-owned direct subsidiary of OMI, and intercompany receivables (other than ordinary course trade receivables)
due from TRLEI to TRA and certain of its affiliates will be contributed to OMI.
Subscription
Prior
to Closing, but after the redemption of certain shares of the Company, the Company will, as agent acting on behalf of its stockholders,
subscribe for common shares of OMI, at a price equal to their par value of 0.05 PHP
(0.05 Philippine pesos), with the cash payment for such shares being deemed made by and on behalf of the applicable
stockholders of the Company (the “Subscription”). In order to fund the cash payment on behalf the applicable Company stockholders,
the Company will, prior to Closing, declare and pay a cash dividend on the shares of common stock of the Company in the amount of 0.05
PHP per share of common stock of the Company, which amount will either be paid by the Company to OMI in accordance with the Subscription
Agreement or paid to holders of the Company’s shares of common stock who elect not to participate in the Subscription (but have
not elected to have their shares redeemed by the Company).
Conditions to Closing
The
OMI Business Combination is subject to the satisfaction or waiver of certain customary mutual closing conditions, including, among others,
(a) the absence of any order by a governmental authority of competent jurisdiction preventing the consummation of the OMI Business
Combination, (b) the approval of the OMI Merger, the Subscription and related matters by the stockholders of the Company, (c) the
effectiveness of a registration statement, which will include a proxy statement/prospectus prepared by the Company, to be filed by OMI
with the SEC in connection with the OMI Business Combination, (d) the receipt of approval for listing of OMI’s common
shares on Nasdaq, (e) the completion of the Reorganization, (f) the amendment of OMI’s organizational documents substantially in
the form attached to the Merger and Share Subscription Agreement, and (g) the dividend to fund the Subscription shall have been declared,
or alternative financing for the Subscription arranged.
Other
conditions to the Company’s obligations to consummate the OMI Business Combination include, among others, (a) that representations
and warranties of the UEC Parties are true and correct, generally subject to an absence of inaccuracies that would constitute a material
adverse effect, (b) performance of covenants by the UEC Parties in all material respects and (c) the absence of a material adverse
effect on the UEC Parties.
Other
conditions to the UEC Parties’ obligations to consummate the OMI Business Combination include, among others, that (a) representations
and warranties of the Company are true and correct, generally subject to an absence of inaccuracies that would constitute a material adverse
effect, (b) performance of covenants by the Company in all material respects and (c) the absence of a material adverse effect
on the Company.
Covenants
The
OMI Merger and Share Acquisition Agreement contains additional covenants, including, among others, providing for (a) the parties
to conduct their respective businesses in the ordinary course through the Closing, (b) the parties to not initiate any negotiations
or enter into any agreements for certain alternative transactions, (c) OMI to prepare and deliver to the Company certain audited
consolidated financial statements of TRLEI and pro forma financial statements giving effect to the Transactions that comply with the requirements
of Regulation S-X under the rules and regulations of the SEC (as interpreted by the staff of the SEC), (d) OMI to prepare and file
a registration statement (including a proxy statement prepared by the Company) with the SEC, and (e) the parties to use reasonable
best efforts to obtain necessary approvals from governmental agencies and consummate the OMI Business Combination.
Representations
and Warranties
The
OMI Merger and Share Acquisition Agreement contains customary representations and warranties by the Company and the UEC Parties. The representations
and warranties of the respective parties to the OMI Merger and Share Subscription Agreement generally will not survive the Closing.
Termination
The
OMI Merger and Share Acquisition Agreement may be terminated at any time prior to the Closing (a) by mutual written consent of the
parties, (b) by either the Company or the UEC Parties in certain other circumstances set forth in the OMI Merger and Share Subscription
Agreement, including, a breach by the other party or parties of their representations and warranties or covenants that would prevent the
satisfaction of certain closing conditions, and (c) by either the Company or the UEC Parties (i) if any governmental authority shall
have issued an order preventing consummation of the OMI Business Combination, (ii) in the event the Closing does not occur by July
1, 2022, and (iii) stockholders of the Company do not approve the OMI Business Combination as outlined in the OMI Merger and Share Subscription
Agreement.
The
foregoing description of the OMI Merger and Share Subscription Agreement does not purport to be complete and is qualified in its entirety
by the terms and conditions of the OMI Merger and Share Subscription Agreement
Subscription Agreement
The
OMI Merger and Share Acquisition Agreement contemplates that, in connection with the Closing, OMI and the Company will enter into a subscription
agreement (the “Subscription Agreement”). Pursuant to the Subscription Agreement, the Company, as agent for its participating
stockholders, will subscribe for common shares in OMI that will be delivered to the Company stockholders in connection with
the OMI Merger.
The
foregoing description of the Subscription Agreement does not purport to be complete and is qualified in its entirety by the terms and
conditions of the Subscription Agreement.
Registration Rights
Agreement
The
Merger and Share Acquisition Agreement contemplates that, at the Closing, TRA, OMI, the Company, the Sponsor, and certain other parties
will enter into a registration rights agreement (the “Registration Rights Agreement”). Pursuant to the Registration Rights
Agreement, OMI will be required to register for resale securities held by the stockholders party thereto. OMI will have no obligation
to facilitate or participate in more than a specified number of certain offerings at the request or demand of certain stockholders. In
addition, the holders have certain “piggyback” registration rights with respect to registrations initiated by OMI. OMI will
bear the expenses incurred in connection with the filing of any registration statements pursuant to the Registration Rights Agreement.
In addition, among other things, the Registration Rights Agreement provides for certain lock-up periods post-Closing with respect to certain
securities of OMI held by certain stockholders.
The
issuance of additional shares in connection with the OMI Merger by OMI to TRLEI or other investors:
| ● | may
significantly dilute the equity interest of existing investors, which dilution would increase if the anti-dilution provisions in the
Class B common stock resulted in the issuance of shares of Class A common stock on a greater than one-to-one basis upon conversion of
the Class B common stock; |
| ● | may
subordinate the rights of holders of our common stock if preferred stock is issued with rights senior to those afforded our common stock; |
| ● | could
cause a change in control if a substantial number of shares of our common stock is issued, which may affect, among other things, our
ability to use our net operating loss carry forwards, if any, and could result in the resignation or removal of our present officers
and directors; |
| ● | may
have the effect of delaying or preventing a change of control of us by diluting the stock ownership or voting rights of a person seeking
to obtain control of us; and |
| ● | may
adversely affect prevailing market prices for our Class A common stock and/or warrants. |
Similarly,
if we issue debt securities or otherwise incur significant debt to bank or other lenders, 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 common stock; |
| ● | 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 common stock if declared, our ability to pay expenses, make capital expenditures and acquisitions, and fund other general corporate
purposes; |
| ● | limitations
on our flexibility in planning for and reacting to changes in our business and in the industry in which we operate; |
| ● | increased
vulnerability to adverse changes in general economic, industry and competitive conditions and adverse changes in government regulation; |
| ● | limitations
on our ability to borrow additional amounts for expenses, capital expenditures, acquisitions, debt service requirements, and execution
of our strategy; and |
| ● | other
purposes and other disadvantages compared to our competitors who have less debt. |
We
expect to continue to incur significant costs in the pursuit of the OMI Merger. We cannot assure you that our plans to raise capital or
to complete the OMI Merger will be successful.
For
more information regarding the OMI Business Combination, see the Company’s Current Report on Form 8-K filed with the SEC on October
18, 2021. Other than as specifically discussed herein, this Report does not assume the closing of the OMI Business Combination.
Our Search for Business Combination Opportunities.
Our sponsor is an affiliate
of SpringOwl Asset Management, a registered investment adviser with investment experience and a track record of value creation in companies
operating in the public markets. Led by SpringOwl’s co-founder, Jason Ader, we have assembled a seasoned team of investment professionals
and directors whom we believe will help us execute our investment strategy. Through our affiliation with our sponsor, we will seek to
acquire established private companies that we believe are fundamentally sound but potentially in need of financial, operational, strategic,
or managerial transformation to create a compelling investment opportunity for our stockholders. We may also target segments of existing
public companies which do not fit strategically within their existing structure and/or which are significantly undervalued. We intend
to focus on companies and corporate segments which we believe offer an opportunity for stockholder value creation through the combination
of several elements: (i) an attractive valuation, (ii) a clear plan to unlock incremental value through operational and/or strategic improvements,
(iii) a partial sale of existing operations to those more highly valued in the public markets and/or (iv) a clear path to bring the target
company to the public market. In our dealings with private companies, we will offer existing owners an option to create partial liquidity,
transition their legacy to a public company and/or resolve any fragmented ownership or succession planning issues. In all of our opportunities,
we will seek to implement best-in-class public company governance and to drive the target business to a higher level of performance
and value.
While we may pursue an acquisition
opportunity in any business, industry, sector or geographical location, we have focused on industries that align with the background of
our sponsor and management. These industries include the gaming and gaming technology, branded consumer, lodging and entertainment, and
Internet commerce sectors, which we refer to as our targeted sectors. We believe that there are many potential business combination targets
within these industries that could become attractive public companies, such as OMI. Furthermore, we believe that we are well-positioned to
drive ongoing value creation post-business combination, based on the operational and investment experience and track record of our
team within our targeted sectors over time. We believe our team is well-suited to identify and execute on opportunities that have
the potential to generate attractive risk-adjusted returns for our stockholders. We are not, however, required to complete our initial
business combination within our targeted sectors, and, as a result, we may pursue a business combination outside of these industries.
Our Sponsor: 26 Capital Holdings LLC, an affiliate
of SpringOwl Asset Management LLC
Our sponsor, 26 Capital Holdings
LLC, is a special purpose vehicle under common control with SpringOwl Asset Management LLC. Our sponsor is majority-owned by our
Chairman and Chief Executive Officer, Jason Ader. SpringOwl Asset Management LLC, which was founded in 2013, is a New York-based SEC-registered asset
management firm and independent sponsor leading corporate turnarounds, with a particular focus on the gaming and gaming technology, real
estate, lodging, and other consumer sectors. SpringOwl Asset Management seeks to produce superior risk-adjusted returns by investing
in high-conviction public equity investments. SpringOwl Asset Management and its affiliates have acquired stakes in a variety of
public companies with the goal to improve their valuation, operation, governance and strategic initiatives. The following highlights several
of SpringOwl’s approach to investing in public companies:
| ● | SpringOwl seeks to invest on behalf of its clients in companies
that it believes to be deeply undervalued and actively engages with management teams, boards of directors and other stockholders to identify
and execute on opportunities to unlock value for the benefit of all stakeholders. |
| ● | SpringOwl’s investment team conducts substantial business,
financial and legal due diligence on every investment before acquiring a meaningful ownership stake. |
| ● | SpringOwl’s team of investment professionals brings
years of experience to each of their areas of expertise. |
| ● | SpringOwl maintains an institutional infrastructure with affiliates
in accounting, operations, legal and compliance and business development. |
We believe SpringOwl’s
differentiated platform will provide us with key advantages, including (i) extensive research capabilities and industry expertise, (ii)
deal flow from institutional client relationships, banks, brokers and other intermediaries, (iii) a strong network of proven operators,
executives and board members with expertise across various industries, (iv) an ability to attract talented investment professionals and
advisors, and (v) significant experience in positioning companies for success in the public equity markets through a focus on operational
value creation implemented according to specific, executable plans, along with enhanced corporate governance. Additionally, we believe
that SpringOwl’s reputation with institutional equity investors will ensure that investors consider the pro-forma impact of
a business combination and the value creation plan that we intend to implement. SpringOwl is not an investment adviser to the company.
Business Strategy
Our business strategy has
been and continues to be to identify and complete our initial business combination with a company that can benefit from the strategic
and transactional experience of SpringOwl and our management to transform the company and create stockholder value, such as OMI. We believe
our sponsor, executive officers and independent directors will have access to a wide range of opportunities due to their extensive network
of relationships with management teams of public and private companies, private equity sponsors, other public investors, investment bankers,
lenders, restructuring advisers, attorneys, accountants, and other consultants and intermediaries.
The investment teams of SpringOwl
and its predecessor have developed extensive experience working with management teams of public companies, across market capitalizations
and industries, in order to unlock stockholder value. Over the past eight years, SpringOwl’s team has been actively involved with
dozens of public companies and has developed an extensive network of operators and advisors with whom it works. SpringOwl typically focuses
on investment opportunities in public companies in need of transformation and looks to work with those companies to effect such transformations
through operational improvements, changes in strategic focus, improved execution, enhanced corporate governance and oversight, and/or
by providing strategic capital. During this period, 5-10 of the companies in which SpringOwl or its affiliates invested and interacted
with management and/or the board of directors have engaged in change of control transactions. We believe this track record of public company
value creation and SpringOwl’s practices in partnering with companies and their shareholders to effect change are relevant capabilities
for private companies seeking a public listing, and present a compelling value proposition for such potential target businesses.
In carrying out corporate
turnarounds, our management team pursues many avenues for value creation, including:
| ● | Finding companies which are undervalued and performing poorly
relative to their peer group; |
| ● | Improving corporate balance sheets; |
| ● | Selling off non-core assets; |
| ● | Upgrading underperforming members of management, |
| ● | Creating incentive plans to align management with owners of
the business; |
| ● | Shedding individuals and assets that hurt the reputation or
perception of the business; |
| ● | Improving corporate governance in order to maximize value; |
| ● | Sourcing M&A opportunities for growth; and |
| ● | Attracting strategic capital partners and capital for growth. |
We believe that our management
team’s track record of identifying and sourcing transactions positions us well to appropriately evaluate potential business combinations
and select one that will be well received by the public markets. Additionally, we believe that SpringOwl’s extensive experience
investing in, and its and its nominees serving on the boards of companies that are undergoing strategic and/or operational transformations,
further increases the chances of successfully identifying a quality business where we can employ our practices to improve performance
and valuation while it undergoes strategic and/or operational changes. We intend to deploy a proactive sourcing strategy and to focus
on companies where we believe the combination of our management team’s operating experience, relationships, capital and capital
markets expertise can be catalysts to transform a target company and create value for our stockholders. Following the completion of our
initial public offering, members of our management team and SpringOwl have been actively searching for a target business, such as OMI,
by communicating with their network of relationships and other interested parties. These communications have articulated our initial business
combination criteria, including the parameters of our search for a target business, and will begin the process of pursuing and reviewing
promising leads.
Initial Business Combination
Nasdaq rules require that
we must complete one or more business combinations having an aggregate fair market value of at least 80% of the value of the assets held
in the trust account (excluding the deferred underwriting commissions and taxes payable on the interest earned on the trust account) at
the time of our signing a definitive agreement in connection with our initial business combination. Our board of directors will make the
determination as to the fair market value of our initial business combination. If our board of directors is not able to independently
determine the fair market value of our initial business combination, we may obtain an opinion from an independent investment banking firm
or another independent entity that commonly renders valuation opinions with respect to the satisfaction of such criteria. While we consider
it unlikely that our board of directors will not be able to make an independent determination of the fair market value of our initial
business combination, it may be unable to do so if it is less familiar or experienced with the business of a particular target or if there
is a significant amount of uncertainty as to the value of a target’s assets or prospects. Additionally, pursuant to Nasdaq rules,
any initial business combination must be approved by a majority of our independent directors.
We anticipate structuring our initial business combination either (i) in
such a way so that the post-transaction company in which our public stockholders own shares will own or acquire 100% of the equity
interests or assets of the target business or businesses, or (ii) in such a way so that the post-transaction company owns or acquires
less than 100% of such interests or assets of the target business in order to meet certain objectives of the target management team or
stockholders, or for other reasons. However, we will only complete an initial business combination if the post-transaction company
owns or acquires 50% or more of the outstanding voting securities of the target or otherwise acquires a controlling interest in the target
sufficient for it not to be required to register as an investment company under the Investment Company Act. Even if the post-transaction company
owns or acquires 50% or more of the voting securities of the target, our stockholders prior to the initial business combination may collectively
own a minority interest in the post-transaction company, depending on valuations ascribed to the target and us in the initial business
combination. For example, we could pursue a transaction in which we issue a substantial number of new shares in exchange for all of the
outstanding capital stock of a target. In this case, we would acquire a 100% controlling interest in the target. However, as a result
of the issuance of a substantial number of new shares, our stockholders immediately prior to our initial business combination could own
less than a majority of our outstanding shares subsequent to our initial business combination. If less than 100% of the equity interests
or assets of a target business or businesses are owned or acquired by the post-transaction company, the portion of such business
or businesses that is owned or acquired is what will be taken into account for purposes of Nasdaq’s 80% fair market value test.
If the initial business combination involves more than one target business, the 80% fair market value test will be based on the aggregate
value of all of the transactions and we will treat the target businesses together as the initial business combination for purposes of
a tender offer or for seeking stockholder approval, as applicable. Based on the valuation analysis of our management and board of directors,
we have determined that the fair market value of OMI was substantially in excess of 80% of the funds in the trust account and that the
80% test was therefore satisfied.
Acquisition Criteria
We believe we have the opportunity
to pursue a differentiated set of potential acquisition targets due to our management team’s and SpringOwl’s experience in
driving transformative change in businesses in order to create value for stockholders. Consistent with our business strategy, we have
identified the following general criteria and guidelines that we believe are important in evaluating prospective target businesses and
set us apart from other sources of capital pursuing target businesses in our areas of focus. While we have used these criteria and guidelines
in evaluating acquisition opportunities, such as the OMI Business Combination, we may decide to enter into our initial business combination
with a target business that only meets some but not all of these criteria and guidelines. We seek to acquire companies or segments of
existing public companies that meet the following criteria:
| ● | Benefit substantially from being public. Public currency will
accelerate their growth prospects for both organic and inorganic growth. |
| ● | Operate in industries with strong potential and a stable competitive
environment. |
| ● | Underperform their industries, and have potential for significant
improvement through enhanced management efforts |
| ● | Harbor unexploited growth and/or acquisition opportunities |
| ● | Contain potential for an upward inflection in growth with
the introduction of new products or services |
| ● | Provide sizeable risk-adjusted returns to an acquiror |
These criteria are not intended
to be exhaustive. Any evaluation relating to the merits of a particular initial business combination may be based, to the extent relevant,
on these general guidelines as well as other considerations, factors and criteria that our management may deem relevant. In the event
that we decide to enter into our initial business combination with a target business that meets some but not all of the above criteria,
we will disclose that the target business does not meet the above criteria in our stockholder communication related to our initial business
combination, which, as discussed in this Report, would be in the form of proxy solicitation materials or tender offer documents that we
would file with the SEC.
Acquisition Process
In evaluating prospective
business combinations, such as TRA, we conduct a thorough due diligence review process that encompasses, among other things, a review
of historical and projected financial and operating data, meetings with management and their advisors (if applicable), on-site inspection
of facilities and assets, discussion with customers and suppliers, legal reviews and other reviews as we deem appropriate. We also utilize
our expertise analyzing target companies and evaluating operating projections, financial projections and determining the appropriate return
expectations given the risk profile of the target business.
We are not prohibited from pursuing
an initial business combination with a company that is affiliated with our sponsor, officers or directors. None of the UEC Parties is
affiliated with our sponsor, officers or directors. However, in the event we do not consummate the OMI Business Combination and we seek
to complete our initial business combination with a company that is affiliated with our sponsor, officers or directors, we, or a committee
of independent directors, may obtain an opinion from an independent investment banking firm or another independent entity that commonly
renders valuation opinions that our initial business combination is fair to our company from a financial point of view.
Members of our management
team may directly or indirectly own our founders shares, common stock and/or private placement warrants following our initial public offering,
and, accordingly, may have a conflict of interest in determining whether a particular target business is an appropriate business with
which to effectuate our initial business combination. Further, each of our officers and directors may have a conflict of interest with
respect to evaluating a particular business combination if the retention or resignation of any such officers and directors were to be
included by a target business as a condition to any agreement with respect to our initial business combination.
Each of our officers and directors
presently has, and any of them in the future may have additional, fiduciary or contractual obligations to other entities pursuant to which
such officer or director is or will be required to present a business combination opportunity, if its initial business combination is
not consummated. Accordingly, if any of our officers or directors becomes aware of a business combination opportunity which is suitable
for an entity to which he or she has then-current fiduciary or contractual obligations, he or she will honor his or her fiduciary
or contractual obligations to present such opportunity to such entity. These conflicts may not be resolved in our favor and a potential
target business may be presented to another entity prior to its presentation to us. However, we do not believe that the fiduciary duties
or contractual obligations of our officers or directors will materially affect our ability to complete our initial business combination.
Our amended and restated certificate of incorporation will provide that we renounce our interest in any corporate opportunity offered
to any director or officer unless such opportunity is expressly offered to such person solely in his or her capacity as a director or
officer of our company and such opportunity is one we are legally and contractually permitted to undertake and would otherwise be reasonable
for us to pursue, and to the extent the director or officer is permitted to refer that opportunity to us without violating another legal
obligation.
Our officers and directors
may become an officer or director of another special purpose acquisition company with a class of securities intended to be registered
under the Securities Exchange Act of 1934, as amended, or the Exchange Act, even before we have entered into a definitive agreement regarding
our initial business combination, such as the OMI Merger and Share Acquisition Agreement.
Our Management Team
Members of our management
team are not obligated to devote any specific number of hours to our matters, but they intend to devote as much of their time as they
deem necessary to our affairs until we have completed our initial business combination. The amount of time that any member of our management
team will devote in any time period will vary based on whether a target business has been selected for our initial business combination
and the current stage of the business combination process. We believe our management team’s operating and transaction experience
and relationships with companies will provide us with a substantial number of potential business combination targets. Over the course
of their careers, the members of our management team have developed a broad network of contacts and corporate relationships in many industries.
This network has grown through the activities of our management team sourcing, acquiring and financing businesses, our management team’s
relationships with sellers, financing sources and target management teams and the experience of our management team in executing transactions
under varying economic and financial market conditions.
Status as a Public Company
We believe our structure as
a public company makes us an attractive business combination partner to target businesses. As a public company, we offer a target business
an alternative to the traditional initial public offering through a merger or other business combination with us. Following an initial
business combination, we believe the target business would have greater access to capital and additional means of creating management
incentives that are better aligned with stockholders’ interests than it would as a private company. A target business can further
benefit by augmenting its profile among potential new customers and vendors and aid in attracting talented employees. In a business combination
transaction with us, the owners of the target business may, for example, exchange their shares of stock in the target business for our
shares of Class A common stock (or shares of a new holding company) or for a combination of our shares of Class A common stock
and cash, allowing us to tailor the consideration to the specific needs of the sellers. See “OMI Business Combination” above
for more information regarding such exchange in the OMI Business Combination.
Although there are various
costs and obligations associated with being a public company, we believe target businesses, such as TRA, will find this method a more
expeditious and cost effective method to becoming a public company than the typical initial public offering. The typical initial public
offering process takes a significantly longer period of time than the typical business combination transaction process, and there are
significant expenses in the initial public offering process, including underwriting discounts and commissions, marketing and road show
efforts that may not be present to the same extent in connection with an initial business combination with us.
Furthermore, once a proposed
initial business combination is completed, such as the OMI Business Combination, the target business will have effectively become public,
whereas an initial public offering is always subject to the underwriters’ ability to complete the offering, as well as general market
conditions, which could delay or prevent the offering from occurring or could have negative valuation consequences. Following an initial
business combination, we believe OMI or another target business would then have greater access to capital and an additional means of providing
management incentives consistent with stockholders’ interests and the ability to use its shares as currency for acquisitions. Being
a public company can offer further benefits by augmenting a company’s profile among potential new customers and vendors and aid
in attracting talented employees.
While we believe that our
structure and our management team’s backgrounds will make us an attractive business partner, some potential target businesses may
view our status as a blank check company, such as our lack of an operating history and our ability to seek stockholder approval of any
proposed initial business combination, negatively.
We are an “emerging
growth company,” as defined in Section 2(a) of the Securities Act, as modified by the JOBS Act. As such, we are eligible to
take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not “emerging
growth companies” including, but not limited to, not being required to comply with the independent registered public accounting
firm attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation
in our periodic reports and proxy statements, and exemptions from the requirements of holding a non-binding advisory vote on executive
compensation and stockholder approval of any golden parachute payments not previously approved. If some investors find our securities
less attractive as a result, there may be a less active trading market for our securities and the prices of our securities may be more
volatile.
In addition, Section 107
of the JOBS Act also provides that an “emerging growth company” can take advantage of the extended transition period provided
in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an “emerging
growth company” can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies.
We intend to take advantage of the benefits of this extended transition period. We will remain an emerging growth company until the earlier
of (1) (a) December 31, 2021, (b) the last day of the fiscal year in which we have total annual gross revenue of at least $1.07 billion,
or (c) the last day of the fiscal year in which we are deemed to be a large accelerated filer, which means the market value of our
Class A common stock that is held by non-affiliates exceeds $700 million as of the prior June 30th, and (2) the
date on which we have issued more than $1.0 billion in non-convertible debt securities during the prior three-year period.
Additionally, we are a “smaller
reporting company” as defined in Rule 10(f)(1) of Regulation S-K. Smaller reporting companies may take advantage of certain
reduced disclosure obligations, including, among other things, providing only two years of audited financial statements. We will remain
a smaller reporting company until the last day of the fiscal year in which (1) the market value of our shares held by non-affiliates exceeds
$250 million as of the prior June 30, or (2) our annual revenues exceeded $100 million during such completed fiscal
year and the market value of our shares held by non-affiliates exceeds $700 million as of the prior June 30.
Financial Position
With funds available for an initial
business combination in the amount of $275,016,371, as of December 31, 2021, we offer a target business a variety of options such as creating
a liquidity event for its owners, providing capital for the potential growth and expansion of its operations or strengthening its balance
sheet by reducing its debt or leverage ratio. Because we are able to complete our initial business combination using our cash, debt or
equity securities, or a combination of the foregoing, we have the flexibility to use the most efficient combination that will allow us
to tailor the consideration to be paid to the target business to fit its needs and desires. However, we have not taken any steps to secure
third party financing and there can be no assurance it will be available to us.
Effecting Our Initial Business Combination
We are not presently engaged in, and we will not engage in, any operations
until we consummate our initial business combination. We intend to effectuate our initial business combination using cash from the proceeds
of our initial public offering and the private placement of the private placement warrants, the proceeds of the sale of our shares in
connection with our initial business combination (whether through a PIPE or otherwise), 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. We may seek to complete our initial business
combination with a company or business that may be financially unstable or in its early stages of development or growth, which would subject
us to the numerous risks inherent in such companies and businesses.
If our initial business combination
is paid for using equity or debt securities, or not all of the funds released from the trust account are used for payment of the consideration
in connection with our initial business combination or used for redemptions of our Class A common stock, we may apply the balance
of the cash released to us from the trust account for general corporate purposes, including for maintenance or expansion of operations
of the post-transaction company, the payment of principal or interest due on indebtedness incurred in completing our initial business
combination, to fund the purchase of other companies or for working capital.
We may seek to raise additional
funds through a private offering of debt or equity securities in connection with the completion of our initial business combination, and
we may effectuate our initial business combination using the proceeds of such offering rather than using the amounts held in the trust
account. In the case of an initial business combination funded with assets other than the trust account assets, our proxy materials or
tender offer documents disclosing the initial business combination would disclose the terms of the financing and, only if required by
law, we would seek stockholder approval of such financing. There are no prohibitions on our ability to raise funds privately or through
loans in connection with our initial business combination.
See “OMI Business Combination”
above for more information regarding the financing of and the agreements related to the OMI Business Combination.
Sources of Target Businesses
Target business candidates
are brought to our attention from various unaffiliated sources, including investment bankers and investment professionals. Target businesses
may be brought to our attention by such unaffiliated sources as a result of being solicited by us by calls or mailings. These sources
may also introduce us to target businesses in which they think we may be interested on an unsolicited basis, since many of these sources
will have read this Report and know what types of businesses we are targeting. Our officers and directors, as well as our sponsor and
their respective affiliates, may also bring to our attention target business candidates that they become aware of through their business
contacts as a result of formal or informal inquiries or discussions they may have, as well as attending trade shows or conventions. In
addition, we expect to receive a number of proprietary deal flow opportunities that would not otherwise necessarily be available to us
as a result of the business relationships of our officers and directors and our sponsor and their respective industry and business contacts
as well as their respective affiliates. While we have not engaged the services of professional firms or other individuals that specialize
in business acquisitions on any formal basis, we may engage these firms or other individuals in the future, in which event we may pay
a finder’s fee, consulting fee, advisory fee or other compensation to be determined in an arm’s length negotiation based on
the terms of the transaction. We will engage a finder only to the extent our management determines that the use of a finder may bring
opportunities to us that may not otherwise be available to us or if finders approach us on an unsolicited basis with a potential transaction
that our management determines is in our best interest to pursue. Payment of finder’s fees is customarily tied to completion of
a transaction, in which case any such fee will be paid out of the funds held in the trust account. In no event, however, will our sponsor
or any of our existing officers or directors, or any entity with which our sponsor or officers are affiliated, be paid any finder’s
fee, reimbursement, consulting fee, monies in respect of any payment of a loan or other compensation by the company prior to, or in connection
with any services rendered for any services they render in order to effectuate, the completion of our initial business combination (regardless
of the type of transaction that it is). Although none of our sponsor, executive officers or directors, or any of their respective affiliates,
will be allowed to receive any compensation, finder’s fees or consulting fees from a prospective business combination target in
connection with a contemplated initial business combination, we do not have a policy that prohibits our sponsor, executive officers or
directors, or any of their respective affiliates, from negotiating for the reimbursement of out-of-pocket expenses by a target business.
We pay our sponsor a total of $10,000 per month for office space, utilities and secretarial and administrative support and to reimburse
our sponsor for any out-of-pocket expenses related to identifying, investigating and completing an initial business combination.
Some of our officers and directors may enter into employment or consulting agreements with the post-transaction company following
our initial business combination. The presence or absence of any such fees or arrangements will not be used as a criterion in our selection
process of an initial business combination candidate.
We are not prohibited from pursuing
an initial business combination with an initial business combination target that is affiliated with our sponsor, officers or directors
or making the initial business combination through a joint venture or other form of shared ownership with our sponsor, officers or directors.
While OMI is not affiliated with our sponsor, officers, or directors, in the event we do not consummate the OMI Business Combination and
we seek to complete our initial business combination with an initial business combination target that is affiliated with our sponsor,
officers or directors, we, or a committee of independent directors, we will obtain an opinion from an independent investment banking firm
or from another independent entity that commonly renders valuation opinions that such an initial business combination is fair to our company
from a financial point of view. We are not required to obtain such an opinion in any other context.
If any of our officers or
directors becomes aware of an initial business combination opportunity that falls within the line of business of any entity to which he
or she has pre-existing fiduciary or contractual obligations, he or she may be required to present such business combination opportunity
to such entity prior to presenting such business combination opportunity to us, if its initial business combination is not consummated.
Our officers and directors currently have certain relevant fiduciary duties or contractual obligations that may take priority over their
duties to us.
Selection of a Target Business and Structuring
of our Initial Business Combination
Nasdaq rules require that
we must complete one or more business combinations having an aggregate fair market value of at least 80% of the value of the assets held
in the trust account (excluding the deferred underwriting commissions and taxes payable on the interest earned on the trust account) at
the time of our signing a definitive agreement in connection with our initial business combination. The fair market value of our initial
business combination will be determined by our board of directors based upon one or more standards generally accepted by the financial
community, such as discounted cash flow valuation, a valuation based on trading multiples of comparable public businesses or a valuation
based on the financial metrics of M&A transactions of comparable businesses. If our board of directors is not able to independently
determine the fair market value of our initial business combination, we may obtain an opinion from an independent investment banking firm
or another independent entity that commonly renders valuation opinions with respect to the satisfaction of such criteria. While we consider
it unlikely that our board of directors will not be able to make an independent determination of the fair market value of our initial
business combination, it may be unable to do so if it is less familiar or experienced with the business of a particular target or if there
is a significant amount of uncertainty as to the value of a target’s assets or prospects. We do not intend to purchase multiple
businesses in unrelated industries in conjunction with our initial business combination. Subject to this requirement, our management will
have virtually unrestricted flexibility in identifying and selecting one or more prospective target businesses, although we will not be
permitted to effectuate our initial business combination with another blank check company or a similar company with nominal operations.
Additionally, pursuant to Nasdaq rules, any initial business combination must be approved by a majority of our independent directors.
We anticipate structuring our
initial business combination either (i) in such a way so that the post-transaction company in which our public stockholders
own shares will own or acquire 100% of the equity interests or assets of the target business or businesses, or (ii) in such a way
so that the post-transaction company owns or acquires less than 100% of such interests or assets of the target business in order
to meet certain objectives of the target management team or stockholders. However, we will only complete an initial business combination
if the post-transaction company owns or acquires 50% or more of the outstanding voting securities of the target or otherwise acquires
a controlling interest in the target sufficient for it not to be required to register as an investment company under the Investment Company
Act. Even if the post-transaction company owns or acquires 50% or more of the voting securities of the target, our stockholders prior
to the initial business combination may collectively own a minority interest in the post-transaction company, depending on valuations
ascribed to the target and us in the initial business combination. For example, we could pursue a transaction in which we issue a substantial
number of new shares in exchange for all of the outstanding capital stock of a target. In this case, we would acquire a 100% controlling
interest in the target. However, as a result of the issuance of a substantial number of new shares, our stockholders immediately prior
to our initial business combination could own less than a majority of our outstanding shares subsequent to our initial business combination.
If less than 100% of the equity interests or assets of a target business or businesses are owned or acquired by the post-transaction company,
the portion of such business or businesses that is owned or acquired is what will be taken into account for purposes of Nasdaq’s
80% fair market value test. If the initial business combination involves more than one target business, the 80% fair market value test
will be based on the aggregate value of all of the transactions and we will treat the target businesses together as the initial business
combination for purposes of a tender offer or for seeking stockholder approval, as applicable. Based on the valuation analysis of our
management and board of directors, we have determined that the fair market value of OMI was substantially in excess of 80% of the funds
in the trust account and that the 80% test was therefore satisfied.
To the extent we effect our
initial business combination with a company or business that may be financially unstable or in its early stages of development or growth
we may be affected by numerous risks inherent in such company or business. Although our management will endeavor to evaluate the risks
inherent in a particular target business, we cannot assure you that we will properly ascertain or assess all significant risk factors.
In evaluating a prospective
business target, such as TRA, we conduct a thorough due diligence review process that encompasses, among other things, meetings with incumbent
management and employees, document reviews, interviews of customers and suppliers, inspection of facilities, as well as a review of financial
and other information that will be made available to us.
The time required to select
and evaluate a target business and to structure and complete our initial business combination, and the costs associated with this process,
are not currently ascertainable with any degree of certainty. Any costs incurred with respect to the identification and evaluation of
a prospective target business with which our initial business combination is not ultimately completed will result in our incurring losses
and will reduce the funds we can use to complete another business combination.
Lack of Business Diversification
For an indefinite period of
time after the completion of our initial business combination, the prospects for our success may depend entirely on the future performance
of a single business. Unlike other entities that have the resources to complete business combinations with multiple entities in one or
several industries, it is probable that we will not have the resources to diversify our operations and mitigate the risks of being in
a single line of business. In addition, we have focused our search for an initial business combination in a single industry. By completing
our initial business combination with only a single entity, our lack of diversification may:
| ● | subject us to negative economic, competitive and regulatory
developments, any or all of which may have a substantial adverse impact on the particular industry in which we operate after our initial
business combination, and |
| ● | cause us to depend on the marketing and sale of a single product
or limited number of products or services. |
Limited Ability to Evaluate the Target’s
Management Team
Although we closely scrutinize
the management of a prospective target business, including the management team of OMI, when evaluating the desirability of effecting our
initial business combination with that business and plan to continue to do so if the OMI Business Combination is not consummated and we
seek other business combination opportunities, our assessment of the target business’s management may not prove to be correct. In
addition, the future management may not have the necessary skills, qualifications or abilities to manage a public company. Furthermore,
the future role of members of our management team, if any, in the target business cannot presently be stated with any certainty. The determination
as to whether any of the members of our management team will remain with the combined company will be made at the time of our initial
business combination. While it is possible that one or more of our directors will remain associated in some capacity with us following
our initial business combination, including the OMI Business Combination, in which Jason Ader, our Chief Executive Officer and Chairman,
is expected to remain as a director of the post-combination company, it is unlikely that any of them will devote their full efforts to
our affairs subsequent to our initial business combination. Moreover, we cannot assure you that members of our management team will have
significant experience or knowledge relating to the operations of the particular target business.
We cannot assure you that any
of our key personnel will remain in senior management or advisory positions with the combined company. The determination as to whether
any of our key personnel will remain with the combined company will be made at the time of our initial business combination.
Following an initial business
combination, we may seek to recruit additional managers to supplement the incumbent management of the target business. We cannot assure
you that we will have the ability to recruit additional managers, or that additional managers will have the requisite skills, knowledge
or experience necessary to enhance the incumbent management.
Stockholders May Not Have the Ability to Approve
Our Initial Business Combination
We may conduct redemptions
without a stockholder vote pursuant to the tender offer rules of the SEC. However, we will seek stockholder approval if it is required
by law or applicable stock exchange rule (as of the case with the OMI Business Combination), or we may decide to seek stockholder approval
for business or other legal reasons. Presented in the table below is a graphic explanation of the types of initial business combinations
we may consider and whether stockholder approval is currently required under Delaware law for each such transaction.
| Type of Transaction |
|
Whether
Stockholder
Approval is
Required |
| Purchase of assets |
|
No |
| Purchase of stock of target not involving a merger with the company |
|
No |
| Merger of target into a subsidiary of the company |
|
No |
| Merger of the company with a target |
|
Yes |
Under Nasdaq’s listing
rules, stockholder approval would be required for our initial business combination if, for example:
| ● | we issue shares of Class A common stock that will be
equal to or in excess of 20% of the number of shares of our Class A common stock then outstanding; |
| ● | any of our directors, officers or substantial stockholders
(as defined by Nasdaq rules) has a 5% or greater interest (or such persons collectively have a 10% or greater interest), directly or
indirectly, in the target business or assets to be acquired or otherwise and the present or potential issuance of common stock could
result in an increase in outstanding common shares or voting power of 5% or more; or |
| ● | the issuance or potential issuance of common stock will result
in our undergoing a change of control. |
See “OMI Business Combination”
above for more information regarding the requisite approval as needed in the OMI Business Combination
Permitted Purchases of our Securities
If we seek stockholder approval
of our initial business combination and we do not conduct redemptions in connection with our initial business combination pursuant to
the tender offer rules, our sponsor, initial stockholders, directors, officers, advisors or their respective affiliates may purchase shares
or public warrants in privately negotiated transactions or in the open market either prior to or following the completion of our initial
business combination. There is no limit on the number of shares our initial stockholders, directors, officers, advisors or their respective
affiliates may purchase in such transactions, subject to compliance with applicable law and Nasdaq rules. If they engage in such transactions,
they will not make any such purchases when they are in possession of any material nonpublic information not disclosed to the seller or
if such purchases are prohibited by Regulation M under the Exchange Act. We do not currently anticipate that such purchases, if any, would
constitute a tender offer subject to the tender offer rules under the Exchange Act or a going-private transaction subject to the
going-private rules under the Exchange Act; however, if the purchasers determine at the time of any such purchases that the purchases
are subject to such rules, the purchasers will comply with such rules. Any such purchases have been will be reported pursuant to Section 13
and Section 16 of the Exchange Act to the extent such purchasers are subject to such reporting requirements. None of the funds held
in the trust account will be used to purchase shares or public warrants in such transactions prior to completion of our initial business
combination.
On February 25, 2022, our Chief Executive Officer and Chairman, Jason
Ader, purchased 706,080 of our public warrants at a weighted average purchase price of $0.48 per warrant. On February 28, 2022, Mr. Ader
purchased 238,794 public warrants at a weighted average purchase price of $0.49 per warrant. On March 1, 2022, Mr. Ader purchased 555,126
public warrants at a weighted average purchase price of $0.49 per warrant. On March 2, 2022, our director, J. Randall Waterfield, purchased
984,108 public warrants at a weighted average purchase price of $0.49 per warrant. On March 3, 2022, Mr. Waterfield purchased 57,559 public
warrants at a purchase price of $0.50 per warrant.
The purpose of any such purchases
of shares could be to vote such shares in favor of the initial business combination and thereby increase the likelihood of obtaining
stockholder approval of the initial business combination or to satisfy a closing condition in an agreement with a target that requires
us to have a minimum net worth or a certain amount of cash at the closing of our initial business combination, where it appears that
such requirement would otherwise not be met. The purpose of any such purchases of public warrants could be to reduce the number of public
warrants outstanding or to vote such warrants on any matters submitted to the warrantholders for approval in connection with our initial
business combination. Any such purchases of our securities may result in the completion of our initial business combination that may
not otherwise have been possible. In addition, if such purchases are made, the public “float” of our shares of Class A
common stock or warrants may be reduced and the number of beneficial holders of our securities may be reduced, which may make it difficult
to maintain or obtain the quotation, listing or trading of our securities on a national securities exchange.
Our sponsor, officers, directors
and/or their respective affiliates anticipate that they may identify the stockholders with whom our sponsor, officers, directors, advisors
or their respective affiliates may pursue privately negotiated purchases by either the stockholders contacting us directly or by our receipt
of redemption requests submitted by stockholders following our mailing of proxy materials in connection with our initial business combination.
To the extent that our sponsor, officers, directors, advisors or their respective affiliates enter into a private purchase, they would
identify and contact only potential selling stockholders who have expressed their election to redeem their shares for a pro rata share
of the trust account or vote against our initial business combination, whether or not such stockholder has already submitted a proxy with
respect to our initial business combination. Our sponsor, officers, directors, advisors or their respective affiliates will only purchase
shares if such purchases comply with Regulation M under the Exchange Act and the other federal securities laws.
Any purchases by our sponsor,
officers, directors and/or their respective affiliates who are affiliated purchasers under Rule 10b-18 under the Exchange Act
will only be made to the extent such purchases are able to be made in compliance with Rule 10b-18, which is a safe harbor from liability
for manipulation under Section 9(a)(2) and Rule 10b-5 of the Exchange Act. Rule 10b-18 has certain technical
requirements that must be complied with in order for the safe harbor to be available to the purchaser. Our sponsor, officers, directors
and/or their respective affiliates will not make purchases of common stock if the purchases would violate Section 9(a)(2) or Rule 10b-5 of
the Exchange Act. Any such purchases will be reported pursuant to Section 13 and Section 16 of the Exchange Act to the extent
such purchases are subject to such reporting requirements.
See “OMI Business Combination”
above for more information regarding such purchases in the OMI Business Combination.
Redemption Rights for Public Stockholders upon
Completion of our Initial Business Combination
We will provide our public
stockholders with the opportunity to redeem all or a portion of their shares of Class A common stock upon the completion of our
initial business combination at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the trust account
as of two business days prior to the consummation of the initial business combination, such as the OMI Business Combination, including
interest earned on the funds held in the trust account and not previously released to us to pay our taxes, divided by the number of then
outstanding public shares, subject to the limitations described herein. The amount in the trust account was approximately $10.00 per
public share as of December 31, 2021. The per-share amount we will distribute to investors who properly redeem their shares will
not be reduced by the deferred underwriting commissions we will pay to Cantor Fitzgerald & Co. Our sponsor, officers and directors
have entered into a letter agreement with us, pursuant to which they have agreed to waive their redemption rights with respect to any
founder shares and any public shares held by them in connection with the completion of our initial business combination.
Manner of Conducting Redemptions
We will provide our public
stockholders with the opportunity to redeem all or a portion of their shares of Class A common stock upon the completion of our initial
business combination either (i) in connection with a stockholder meeting called to approve the initial business combination, such
as the OMI Business Combination or (ii) by means of a tender offer if the OMI Business Combination is not consummated. The decision
as to whether we will seek stockholder approval of a proposed initial business combination or conduct a tender offer will be made by us,
solely in our discretion, and will be based on a variety of factors such as the timing of the transaction and whether the terms of the
transaction would require us to seek stockholder approval under the law or stock exchange listing requirement. Under Nasdaq rules, asset
acquisitions and stock purchases would not typically require stockholder approval while direct mergers with our company where we do not
survive and any transactions where we issue more than 20% of our outstanding common stock or seek to amend our amended and restated certificate
of incorporation would require stockholder approval. If we structure an initial business combination with a target company in a manner
that requires stockholder approval, we will not have discretion as to whether to seek a stockholder vote to approve the proposed initial
business combination. We may conduct redemptions without a stockholder vote pursuant to the tender offer rules of the SEC unless stockholder
approval is required by law or stock exchange listing requirements or we choose to seek stockholder approval for business or other legal
reasons. So long as we obtain and maintain a listing for our securities on Nasdaq, we will be required to comply with such rules.
If a stockholder vote is not
required and we do not decide to hold a stockholder vote for business or other legal reasons, we will, pursuant to our amended and restated
certificate of incorporation:
| ● | conduct the redemptions pursuant to Rule 13e-4 and
Regulation 14E of the Exchange Act, which regulate issuer tender offers, and |
| ● | file tender offer documents with the SEC prior to completing
our initial business combination which contain substantially the same financial and other information about the initial business combination
and the redemption rights as is required under Regulation 14A of the Exchange Act, which regulates the solicitation of proxies. |
Upon the public announcement
of our initial business combination, we or our sponsor will terminate any plan established in accordance with Rule 10b5-1 to
purchase shares of our Class A common stock in the open market if we elect to redeem our public shares through a tender offer, to
comply with Rule 14e-5 under the Exchange Act.
In
the event we conduct redemptions pursuant to the tender offer rules, our offer to redeem will remain open for at least 20 business days,
in accordance with Rule 14e-1(a) under the Exchange Act, and we will not be permitted to complete our initial business combination
until the expiration of the tender offer period. In addition, the tender offer will be conditioned on public stockholders not tendering
more than a specified number of public shares which are not purchased by our sponsor, which number will be based on the requirement that
we will only redeem our public shares so long as (after such redemption) our net tangible assets will be at least $5,000,001 either immediately
prior to or upon consummation of our initial business combination and after payment of underwriters’ fees and commissions (so that
we are not subject to the SEC’s “penny stock” rules) or any greater net tangible asset or cash requirement which may
be contained in the agreement relating to our initial business combination. If public stockholders tender more shares than we have offered
to purchase, we will withdraw the tender offer and not complete the initial business combination.
If,
however, stockholder approval of the transaction is required by law or stock exchange listing requirement, or we decide to obtain stockholder
approval for business or other legal reasons, we will, pursuant to our amended and restated certificate of incorporation:
| ● | conduct
the redemptions in conjunction with a proxy solicitation pursuant to Regulation 14A of the
Exchange Act, which regulates the solicitation of proxies, and not pursuant to the tender
offer rules, and |
| ● | file
proxy materials with the SEC. |
In
the event that we seek stockholder approval of our initial business combination, we will distribute proxy materials and, in connection
therewith, provide our public stockholders with the redemption rights described above upon completion of the initial business combination.
If
we seek stockholder approval, we will complete our initial business combination only if a majority of the outstanding shares of common
stock voted are voted in favor of the initial business combination. A quorum for such meeting will consist of the holders present in
person or by proxy of shares of outstanding capital stock of the company representing a majority of the voting power of all outstanding
shares of capital stock of the company entitled to vote at such meeting. Our initial stockholders will count toward this quorum and pursuant
to the letter agreement, our sponsor, officers and directors have agreed to vote their founder shares and any public shares purchased
during or after this offering (including in open market and privately negotiated transactions) in favor of our initial business combination.
For purposes of seeking approval of the majority of our outstanding shares of common stock voted, non-votes will have no effect
on the approval of our initial business combination once a quorum is obtained. As a result, in addition to our initial stockholders’
founder shares, we would need only 10,312,501, or 37.5%, of the 27,500,000 public shares sold in our initial public offering to be voted
in favor of an initial business combination (assuming all outstanding shares are voted; or 1,718,751, or 6.25%, assuming only the minimum
number of shares representing a quorum are voted and assuming our sponsor, officers and directors do not purchase any public shares)
in order to have our initial business combination approved (in each case assuming the over-allotment option is not exercised). We
intend to give approximately 30 days’ (but not less than 10 days’ nor more than 60 days’) prior written
notice of any such meeting, if required, at which a vote shall be taken to approve our initial business combination. These quorum and
voting thresholds, and the voting agreements of our initial stockholders, may make it more likely that we will consummate our initial
business combination. Each public stockholder may elect to redeem its public shares irrespective of whether they vote for or against
the proposed transaction.
Our
amended and restated certificate of incorporation provides that we will only redeem our public shares so long as (after such redemption)
our net tangible assets will be at least $5,000,001 either immediately prior to or upon consummation of our initial business combination
and after payment of underwriters’ fees and commissions (so that we are not subject to the SEC’s “penny stock”
rules) or any greater net tangible asset or cash requirement which may be contained in the agreement relating to our initial business
combination. For example, the proposed initial business combination may require: (i) cash consideration to be paid to the target
or its owners, (ii) cash to be transferred to the target for working capital or other general corporate purposes or (iii) the
retention of cash to satisfy other conditions in accordance with the terms of the proposed initial business combination. In the event
the aggregate cash consideration we would be required to pay for all shares of Class A common stock that are validly submitted for
redemption plus any amount required to satisfy cash conditions pursuant to the terms of the proposed initial business combination exceed
the aggregate amount of cash available to us, we will not complete the initial business combination or redeem any shares, and all shares
of Class A common stock submitted for redemption will be returned to the holders thereof.
See
“OMI Business Combination” above for more information regarding the requisite approvals needed for the OMI Business Combination.
Limitation
on Redemption upon Completion of our Initial Business Combination if we Seek Stockholder Approval
Notwithstanding
the foregoing, if we seek stockholder approval of our initial business combination and we do not conduct redemptions in connection with
our initial business combination pursuant to the tender offer rules, our amended and restated certificate of incorporation provides that
a public stockholder, together with any affiliate of such stockholder or any other person with whom such stockholder is acting in concert
or as a “group” (as defined under Section 13 of the Exchange Act), will be restricted from seeking redemption rights
with respect to more than an aggregate of 15% of the shares sold in our initial public offering, which we refer to as the “Excess
Shares.” Such restriction shall also be applicable to our affiliates. We believe this restriction will discourage stockholders
from accumulating large blocks of shares, and subsequent attempts by such holders to use their ability to exercise their redemption rights
against a proposed initial business combination as a means to force us or our management to purchase their shares at a significant premium
to the then-current market price or on other undesirable terms. Absent this provision, a public stockholder holding more than an
aggregate of 15% of the shares sold in our initial public offering could threaten to exercise its redemption rights if such holder’s
shares are not purchased by us or our management at a premium to the then-current market price or on other undesirable terms. By
limiting our stockholders’ ability to redeem no more than 15% of the shares sold in our initial public offering without our prior
consent, we believe we will limit the ability of a small group of stockholders to unreasonably attempt to block our ability to complete
our initial business combination, particularly in connection with an initial business combination with a target that requires as a closing
condition that we have a minimum net worth or a certain amount of cash. However, we would not be restricting our stockholders’
ability to vote all of their shares (including Excess Shares) for or against our initial business combination.
See
“OMI Business Combination” above for more information regarding the requisite approvals needed for the OMI Business Combination.
Tendering
Stock Certificates in Connection with Redemption Rights
We
may require our public stockholders seeking to exercise their redemption rights, whether they are record holders or hold their shares
in “street name,” to either tender their certificates to our transfer agent prior to the meeting held to approve a proposed
initial business combination by a date set forth in the proxy materials mailed to such holders or to deliver their shares to the transfer
agent electronically using the DWAC System, at the holder’s option. The proxy materials that we will furnish to holders of our
public shares in connection with our initial business combination will indicate whether we are requiring public stockholders to satisfy
such delivery requirements. Accordingly, a public stockholder would have from the time we send out our proxy materials until the date
set forth in such proxy materials to tender its shares if it wishes to seek to exercise its redemption rights. Given the relatively short
exercise period, it is advisable for stockholders to use electronic delivery of their public shares.
There
is a nominal cost associated with the above-referenced tendering process and the act of certificating the shares or delivering them
through the DWAC System. The transfer agent will typically charge the tendering broker $80.00 and it would be up to the broker whether
or not to pass this cost on to the redeeming holder. However, this fee would be incurred regardless of whether or not we require holders
seeking to exercise redemption rights to tender their shares. The need to deliver shares is a requirement of exercising redemption rights
regardless of the timing of when such delivery must be effectuated.
The
foregoing is different from the procedures used by many blank check companies. In order to perfect redemption rights in connection with
their business combinations, many blank check companies would distribute proxy materials for the stockholders’ vote on an initial
business combination, and a holder could simply vote against a proposed initial business combination and check a box on the proxy card
indicating such holder was seeking to exercise his or her redemption rights. After the initial business combination was approved, the
company would contact such stockholder to arrange for him or her to deliver his or her certificate to verify ownership. As a result,
the stockholder then had an “option window” after the completion of the initial business combination during which he or she
could monitor the price of the company’s stock in the market. If the price rose above the redemption price, he or she could sell
his or her shares in the open market before actually delivering his or her shares to the company for cancellation. As a result, the redemption
rights, to which stockholders were aware they needed to commit before the stockholder meeting, would become “option” rights
surviving past the completion of the initial business combination until the redeeming holder delivered its certificate. The requirement
for physical or electronic delivery prior to the meeting ensures that a redeeming holder’s election to redeem is irrevocable once
the initial business combination is approved.
Any
request to redeem such shares, once made, may be withdrawn at any time up to the date set forth in the proxy materials. Furthermore,
if a holder of a public share delivered its certificate in connection with an election of redemption rights and subsequently decides
prior to the applicable date not to elect to exercise such rights, such holder may simply request that the transfer agent return the
certificate (physically or electronically). It is anticipated that the funds to be distributed to holders of our public shares electing
to redeem their shares will be distributed promptly after the completion of our initial business combination.
If
our initial business combination is not approved or completed for any reason, then our public stockholders who elected to exercise their
redemption rights would not be entitled to redeem their shares for the applicable pro rata share of the trust account. In such case,
we will promptly return any certificates delivered by public holders who elected to redeem their shares.
If
the OMI Business Combination is not completed, we may continue to try to complete an initial business combination with a different target
until January 20, 2023.
Redemption
of Public Shares and Liquidation if no Initial Business Combination
Our
amended and restated certificate of incorporation provides that we will have only until January 20, 2023 to complete our initial business
combination. If we are unable to complete our initial business combination by January 20, 2023, we will: (i) cease all operations
except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem
the public shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the trust account including
interest earned on the funds held in the trust account and not previously released to us to pay our taxes (less up to $100,000 of interest
to pay dissolution expenses), divided by the number of then outstanding public shares, which redemption will completely extinguish public
stockholders’ rights as stockholders (including the right to receive further liquidating distributions, if any), subject to applicable
law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of our remaining stockholders
and our board of directors, dissolve and liquidate, subject in each case to our obligations under Delaware law to provide for claims
of creditors and the requirements of other applicable law. There will be no redemption rights or liquidating distributions with respect
to our warrants, which will expire worthless if we fail to complete our initial business combination by January 20, 2023.
Our
sponsor, officers and directors have entered into a letter agreement with us, pursuant to which they have waived their rights to liquidating
distributions from the trust account with respect to any founder shares held by them if we fail to complete our initial business combination
by January 20, 2023. However, if our sponsor, officers or directors acquire public shares in or after this offering, they will be entitled
to liquidating distributions from the trust account with respect to such public shares if we fail to complete our initial business combination
by January 20, 2023.
Our
sponsor, officers and directors have agreed, pursuant to a written agreement with us, that they will not propose any amendment to our
amended and restated certificate of incorporation (i) to modify the substance or timing of our obligation to redeem 100% of our
public shares if we do not complete our initial business combination by January 20, 2023 or (ii) with respect to any other provision
relating to stockholders’ rights or pre-initial business combination activity, unless we provide our public stockholders with
the opportunity to redeem their shares of Class A common stock upon approval of any such amendment at a per-share price, payable
in cash, equal to the aggregate amount then on deposit in the trust account including interest earned on the funds held in the trust
account and not previously released to us to pay our taxes divided by the number of then outstanding public shares. However, we will
only redeem our public shares so long as (after such redemption) our net tangible assets will be at least $5,000,001 either immediately
prior to or upon consummation of our initial business combination and after payment of underwriters’ fees and commissions (so that
we are not subject to the SEC’s “penny stock” rules). If this optional redemption right is exercised with respect to
an excessive number of public shares such that we cannot satisfy the net tangible asset requirement (described above), we would not proceed
with the amendment or the related redemption of our public shares at such time.
If
we do not consummate the OMI Business Combination or any other initial business combination by the deadline set forth in our amended
and restate certificate of incorporation, we expect that all costs and expenses associated with implementing our plan of dissolution,
as well as payments to any creditors, will be funded from amounts remaining out of the approximately $1,000,000 of proceeds held outside
the trust account, although we cannot assure you that there will be sufficient funds for such purpose. We will depend on sufficient interest
being earned on the proceeds held in the trust account to pay any tax obligations we may owe. However, if those funds are not sufficient
to cover the costs and expenses associated with implementing our plan of dissolution, to the extent that there is any interest accrued
in the trust account not required to pay taxes on interest income earned on the trust account balance, we may request the trustee to
release to us an additional amount of up to $100,000 of such accrued interest to pay those costs and expenses.
If
we were to expend all of the net proceeds of our initial public offering and the sale of the private placement warrants, other than the
proceeds deposited in the trust account, and without taking into account interest, if any, earned on the trust account, the per-share redemption
amount received by stockholders upon our dissolution would be approximately $10.00. The proceeds deposited in the trust account could,
however, become subject to the claims of our creditors which would have higher priority than the claims of our public stockholders. We
cannot assure you that the actual per-share redemption amount received by stockholders will not be substantially less than $10.00.
Under Section 281(b) of the DGCL, our plan of dissolution must provide for all claims against us to be paid in full or make provision
for payments to be made in full, as applicable, if there are sufficient assets. These claims must be paid or provided for before we make
any distribution of our remaining assets to our stockholders. While we intend to pay such amounts, if any, we cannot assure you that
we will have funds sufficient to pay or provide for all creditors’ claims.
Although
we have sought and will continue to seek to have all vendors, service providers, prospective target businesses or other entities with
which we do business execute agreements with us waiving any right, title, interest or claim of any kind in or to any monies held in the
trust account for the benefit of our public stockholders, there is no guarantee that they will execute such agreements or even if they
execute such agreements that they would be prevented from bringing claims against the trust account including but not limited to fraudulent
inducement, breach of fiduciary responsibility or other similar claims, as well as claims challenging the enforceability of the waiver,
in each case in order to gain an advantage with respect to a claim against our assets, including the funds held in the trust account.
If any third party refuses to execute an agreement waiving such claims to the monies held in the trust account, our management will perform
an analysis of the alternatives available to it and will only enter into an agreement with a third party that has not executed a waiver
if management believes that such third party’s engagement would be significantly more beneficial to us than any alternative. Examples
of possible instances where we may engage a third party that refuses to execute a waiver include the engagement of a third-party consultant
whose particular expertise or skills are believed by management to be significantly superior to those of other consultants that would
agree to execute a waiver or in cases where management is unable to find a service provider willing to execute a waiver. WithumSmith+Brown,
PC, our independent registered public accounting firm, and the underwriters of our initial public offering will not execute agreements
with us waiving such claims to the monies held in the trust account.
In
addition, there is no guarantee that such entities will agree to waive any claims they may have in the future as a result of, or arising
out of, any negotiations, contracts or agreements with us and will not seek recourse against the trust account for any reason. Our sponsor
has agreed that it will be liable to us if and to the extent any claims by a third party for services rendered or products sold to us,
or a prospective target business with which we have entered into a written letter of intent, confidentiality or similar agreement or
business combination agreement, reduce the amount of funds in the trust account to below the lesser of (i) $10.00 per public share and
(ii) the actual amount per public share held in the trust account as of the date of the liquidation of the trust account, if less
than $10.00 per share due to reductions in the value of the trust assets, less taxes payable, provided that such liability will not apply
to any claims by a third party or prospective target business who executed a waiver of any and all rights to the monies held in the trust
account (whether or not such waiver is enforceable) nor will it apply to any claims under our indemnity of the underwriters of our initial
public offering against certain liabilities, including liabilities under the Securities Act. However, we have not asked our sponsor to
reserve for such indemnification obligations, nor have we independently verified whether our sponsor has sufficient funds to satisfy
its indemnity obligations and believe that our sponsor’s only assets are securities of our company. Therefore, we cannot assure
you that our sponsor would be able to satisfy those obligations. None of our officers or directors are required to indemnify us for claims
by third parties including, without limitation, claims by vendors and prospective target businesses.
In
the event that the proceeds in the trust account are reduced below (i) $10.00 per public share or (ii) such lesser amount per public
share held in the trust account as of the date of the liquidation of the trust account, due to reductions in value of the trust assets,
in each case net of the amount of interest which may be withdrawn to pay taxes, and our sponsor asserts that it is unable to satisfy
its indemnification obligations or that it has no indemnification obligations related to a particular claim, our independent directors
would determine whether to take legal action against our sponsor to enforce its indemnification obligations. While we currently expect
that our independent directors would take legal action on our behalf against our sponsor to enforce its indemnification obligations to
us, it is possible that our independent directors in exercising their business judgment may choose not to do so if, for example, the
cost of such legal action is deemed by the independent directors to be too high relative to the amount recoverable or if the independent
directors determine that a favorable outcome is not likely. We have not asked our sponsor to reserve for such indemnification obligations
and we cannot assure you that our sponsor would be able to satisfy those obligations. Accordingly, we cannot assure you that due to claims
of creditors the actual value of the per-share redemption price will not be less than $10.00 per public share.
We seek to reduce the possibility that our sponsor will have to indemnify
the trust account due to claims of creditors by endeavoring to have all vendors, service providers (except our independent registered
public accounting firm), prospective target businesses or other entities with which we do business execute agreements with us waiving
any right, title, interest or claim of any kind in or to monies held in the trust account. Our sponsor will also not be liable as to any
claims under our indemnity of the underwriters of this offering against certain liabilities, including liabilities under the Securities
Act. As of December 31, 2021, we have access to up to approximately $275,016,371 from the proceeds of our initial public offering with
which to pay any such potential claims (including costs and expenses incurred in connection with our liquidation, currently estimated
to be no more than approximately $100,000). In the event that we liquidate and it is subsequently determined that the reserve for claims
and liabilities is insufficient, stockholders who received funds from our trust account could be liable for claims made by creditors.
Under
the DGCL, stockholders may be held liable for claims by third parties against a corporation to the extent of distributions received by
them in a dissolution. The pro rata portion of our trust account distributed to our public stockholders upon the redemption of our public
shares in the event we do not complete our initial business combination by January 20, 2023 may be considered a liquidating distribution
under Delaware law. If the corporation complies with certain procedures set forth in Section 280 of the DGCL intended to ensure
that it makes reasonable provision for all claims against it, including a 60-day notice period during which any third-party claims
can be brought against the corporation, a 90-day period during which the corporation may reject any claims brought, and an additional
150-day waiting period before any liquidating distributions are made to stockholders, any liability of stockholders with respect
to a liquidating distribution is limited to the lesser of such stockholder’s pro rata share of the claim or the amount distributed
to the stockholder, and any liability of the stockholder would be barred after the third anniversary of the dissolution.
Furthermore,
if the pro rata portion of our trust account distributed to our public stockholders upon the redemption of our public shares in the event
we do not complete our initial business combination by January 20, 2023, is not considered a liquidating distribution under Delaware
law and such redemption distribution is deemed to be unlawful (potentially due to the imposition of legal proceedings that a party may
bring or due to other circumstances that are currently unknown), then pursuant to Section 174 of the DGCL, the statute of limitations
for claims of creditors could then be six years after the unlawful redemption distribution, instead of three years, as in the case of
a liquidating distribution. If we are unable to complete our initial business combination by January 20, 2023, we will: (i) cease
all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than ten business days
thereafter, redeem the public shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the
trust account including interest earned on the funds held in the trust account and not previously released to us to pay our taxes (less
up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding public shares, which redemption will
completely extinguish public stockholders’ rights as stockholders (including the right to receive further liquidating distributions,
if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval
of our remaining stockholders and our board of directors, dissolve and liquidate, subject in each case to our obligations under Delaware
law to provide for claims of creditors and the requirements of other applicable law. Accordingly, it is our intention to redeem our public
shares as soon as reasonably possible following our 24th month and, therefore, we do not intend to comply with those
procedures. As such, our stockholders could potentially be liable for any claims to the extent of distributions received by them (but
no more) and any liability of our stockholders may extend well beyond the third anniversary of such date.
Because
we will not be complying with Section 280, Section 281(b) of the DGCL requires us to adopt a plan, based on facts known to
us at such time that will provide for our payment of all existing and pending claims or claims that may be potentially brought against
us within the subsequent 10 years. However, because we are a blank check company, rather than an operating company, and our operations
will be limited to searching for prospective target businesses to acquire, the only likely claims to arise would be from our vendors
(such as lawyers, investment bankers, etc.) or prospective target businesses. As described above, pursuant to the obligation contained
in our underwriting agreement, we will seek to have all vendors, service providers (except our independent registered accounting firm),
prospective target businesses or other entities with which we do business execute agreements with us waiving any right, title, interest
or claim of any kind in or to any monies held in the trust account. As a result of this obligation, the claims that could be made against
us are significantly limited and the likelihood that any claim that would result in any liability extending to the trust account is remote.
Further, our sponsor may be liable only to the extent necessary to ensure that the amounts in the trust account are not reduced below
(i) $10.00 per public share or (ii) such lesser amount per public share held in the trust account as of the date of the liquidation
of the trust account, due to reductions in value of the trust assets, in each case net of the amount of interest withdrawn to pay taxes
and will not be liable as to any claims under our indemnity of the underwriters of our initial public offering against certain liabilities,
including liabilities under the Securities Act. In the event that an executed waiver is deemed to be unenforceable against a third party,
our sponsor will not be responsible to the extent of any liability for such third-party claims.
If
we file a bankruptcy petition or an involuntary bankruptcy petition is filed against us that is not dismissed, the proceeds held in the
trust account could be subject to applicable bankruptcy law, and may be included in our bankruptcy estate and subject to the claims of
third parties with priority over the claims of our stockholders. To the extent any bankruptcy claims deplete the trust account, we cannot
assure you we will be able to return $10.00 per share to our public stockholders. Additionally, if we file a bankruptcy petition or an
involuntary bankruptcy petition is filed against us that is not dismissed, any distributions received by stockholders could be viewed
under applicable debtor/creditor and/or bankruptcy laws as either a “preferential transfer” or a “fraudulent conveyance.”
As a result, a bankruptcy court could seek to recover some or all amounts received by our stockholders. Furthermore, our board of directors
may be viewed as having breached its fiduciary duty to our creditors and/or may have acted in bad faith, thereby exposing itself and
our company to claims of punitive damages, by paying public stockholders from the trust account prior to addressing the claims of creditors.
We cannot assure you that claims will not be brought against us for these reasons.
Our
public stockholders will be entitled to receive funds from the trust account only upon the earlier to occur of: (i) the completion
of our initial business combination, (ii) the redemption of any public shares properly tendered in connection with a stockholder
vote to amend any provisions of our amended and restated certificate of incorporation (A) to modify the substance or timing of our
obligation to offer redemption rights in connection with any proposed initial business combination or to redeem 100% of our public shares
if we do not complete our initial business combination by January 20, 2023 or (B) with respect to any other provision relating to
stockholders’ rights or pre-initial business combination activity, and (iii) the redemption of all of our public shares
if we are unable to complete our business combination January 20, 2023, subject to applicable law. Stockholders who do not exercise their
redemption rights in connection with an amendment to our amended and restated certificate of incorporation would still be able to exercise
their redemption rights in connection with a subsequent business combination. In no other circumstances will a stockholder have any right
or interest of any kind to or in the trust account. In the event we seek stockholder approval in connection with our initial business
combination, a stockholder’s voting in connection with the initial business combination alone will not result in a stockholder’s
redeeming its shares to us for an applicable pro rata share of the trust account. Such stockholder must have also exercised its redemption
rights as described above. These provisions of our amended and restated certificate of incorporation, like all provisions of our amended
and restated certificate of incorporation, may be amended with a stockholder vote.
Competition
In
identifying, evaluating and selecting a target business for our initial business combination, such as TRA, we may encounter competition
from other entities having a business objective similar to ours, including other blank check companies, private equity groups and leveraged
buyout funds, and operating businesses seeking strategic business combinations. Many of these entities are well established and have
extensive experience identifying and effecting business combinations directly or through affiliates. Moreover, many of these competitors
possess greater financial, technical, human and other resources than we do. Our ability to acquire larger target businesses will be limited
by our available financial resources. This inherent limitation gives others an advantage in pursuing the initial business combination
of a target business. Furthermore, our obligation to pay cash in connection with our public stockholders who exercise their redemption
rights may reduce the resources available to us for our initial business combination and our outstanding warrants, and the future dilution
they potentially represent, may not be viewed favorably by certain target businesses. Either of these factors may place us at a competitive
disadvantage in successfully negotiating an initial business combination.
Facilities
Our
executive offices are located at OfficeEdge Miami, 701 Brickell Avenue, Suite 1550, Miami, Florida 33131. We pay our sponsor a total
of $10,000 per month for office space, utilities and secretarial and administrative support. We consider our current office space adequate
for our current operations.
Employees
We
currently have two officers. These individuals are not obligated to devote any specific number of hours to our matters but they intend
to devote as much of their time as they deem necessary to our affairs until we have completed our initial business combination. The amount
of time they devote in any time period varies based on the stage of the initial business combination process we are in. We do not intend
to have any full-time employees prior to the completion of our initial business combination.
Periodic
Reporting and Financial Information
Our
units, Class A common stock, and warrants are registered under the Exchange Act and as a result we have reporting obligations, including
the requirement that we file annual, quarterly and current reports with the SEC. In accordance with the requirements of the Exchange
Act, our annual reports, including this report, will contain financial statements audited and reported on by our independent registered
public accountants.
We
will provide stockholders with audited financial statements of the prospective target business as part of the tender offer materials
or proxy solicitation materials sent to stockholders to assist them in assessing the target business. In all likelihood, these financial
statements will need to be prepared in accordance with, or reconciled to, GAAP, or IFRS, depending on the circumstances, and the historical
financial statements may be required to be audited in accordance with the standards of the PCAOB. These financial statement requirements
may limit the pool of potential targets we may conduct an initial business combination with because some targets may be unable to provide
such statements in time for us to disclose such statements in accordance with federal proxy rules and complete our initial business combination
within the prescribed time frame. We cannot assure you that any particular target business identified by us as a potential business combination
candidate will have financial statements prepared in accordance with GAAP or that the potential target business will be able to prepare
its financial statements in accordance with the requirements outlined above. To the extent that these requirements cannot be met, we
may not be able to acquire the proposed target business. While this may limit the pool of potential business combination candidates,
we do not believe that this limitation will be material.
We
are required to evaluate our internal control procedures for the fiscal year ending December 31, 2021 as required by the Sarbanes-Oxley Act.
Only in the event we are deemed to be a large accelerated filer or an accelerated filer, and no longer qualify as an emerging growth
company, will we be required to have our internal control procedures audited. A target company may not be in compliance with the provisions
of the Sarbanes-Oxley Act regarding adequacy of their internal controls. The development of the internal controls of any such entity
to achieve compliance with the Sarbanes-Oxley Act may increase the time and costs necessary to complete any such business combination.
We have filed a Registration Statement on Form 8-A with the SEC to voluntarily register our securities under Section 12
of the Exchange Act. As a result, we are subject to the rules and regulations promulgated under the Exchange Act. We have no current
intention of filing a Form 15 to suspend our reporting or other obligations under the Exchange Act prior or subsequent to the consummation
of our initial business combination.
We
will remain an emerging growth company until the earlier of (1) (a) December 31, 2026, (b) the last day of the fiscal year in
which we have total annual gross revenue of at least $1.07 billion, or (c) the last day of the fiscal year in which we are
deemed to be a large accelerated filer, which means the market value of our shares of Class A common stock that are held by non-affiliates exceeds
$700 million as of the prior June 30th, and (2) the date on which we have issued more than $1.0 billion in
non-convertible debt during the prior three-year period.
Additionally,
we are a “smaller reporting company” as defined in Rule 10(f)(1) of Regulation S-K. Smaller reporting companies may
take advantage of certain reduced disclosure obligations, including, among other things, providing only two years of audited financial
statements. We will remain a smaller reporting company until the last day of the fiscal year in which (1) the market value of our
shares held by non-affiliates exceeds $250 million as of the prior June 30, or (2) our annual revenues exceeded $100 million
during such completed fiscal year and the market value of our shares held by non-affiliates exceeds $700 million as of the
prior June 30.