Item
7.01 Regulation FD Disclosure.
The information in this Item
7.01 is furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934,
as amended (the “Exchange Act”), or otherwise subject to liabilities under that section, and shall not be deemed to
be incorporated by reference into the filing of XPAC Acquisition Corp. (“XPAC”) under the Securities Act of 1933, as
amended (the “Securities Act”) or the Exchange Act, regardless of any general incorporation language in such filings.
The amended and restated memorandum
and articles of association of XPAC (as amended and restated and amended from time to time, the “Memorandum and Articles”)
currently provide that XPAC has until August 3, 2023 (the “Original Termination Date”) to complete its initial
business combination and, if XPAC does not complete an initial business combination by the Original Termination Date, XPAC 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, complete the redemption of all issued and outstanding Class A Ordinary Shares, par value $0.0001 per share (“Class A
Ordinary Shares”) issued in XPAC’s initial public offering (the “IPO”) (the “Public Shares”)
originally offered together with redeemable warrants (“Public Warrants”) as units (the “Units”)
in the IPO, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the trust account established in connection
with the IPO (the “Trust Account”), including interest earned on the funds held in the Trust Account and not previously
released to XPAC (less taxes payable and up to $100,000 of interest to pay dissolution expenses and which interest shall be net of any
taxes payable), divided by the number of the then-outstanding Public Shares, which redemption will completely extinguish the rights of
the holders of Public Shares as shareholders (including the right to receive further liquidation distributions, if any); and (iii) as
promptly as reasonably possible following such redemption and subject to the approval of XPAC’s then remaining shareholders and
XPAC’s board of directors (the “XPAC Board”), liquidate and dissolve, subject in each case to XPAC’s obligations
under Cayman Islands law to provide for claims of creditors and the requirements of other applicable law.
As previously disclosed
by XPAC on May 4, 2023, the XPAC Board determined on May 3, 2023 that it was in the best interests of XPAC and its
shareholders to accelerate the Original Termination Date and, on May 8, 2023, XPAC filed a preliminary proxy statement with the
Securities and Exchange Commission (the “SEC”) relating to a proposed extraordinary general meeting of the
shareholders of XPAC to consider and vote upon matters relating to such proposed acceleration of the Original Termination Date.
Following the filing of such preliminary proxy statement, XPAC and XPAC Sponsor LLC (the “Sponsor”) were
approached by a number of professional investors with proposals to acquire control of the Sponsor or to acquire all or some of the
Sponsor’s interests in XPAC and for a new board of directors and management of XPAC to be appointed, which transactions would
be conditional upon obtaining the approval of the shareholders of XPAC to (i) extend the Original Termination Date to provide
additional time for XPAC to complete an initial business combination, and (ii) redeem their Public Shares in exchange for their
pro rata portion of the funds held in the Trust Account. As of the date hereof, neither XPAC nor the Sponsor have entered into any
binding agreements in relation to any such transaction, and there can be no assurance that any such binding agreements will be
entered into.
The Sponsor is currently negotiating with a professional
investor (the “New Sponsor”) a potential transaction (the “Sponsor Handover”) whereby the New Sponsor
would acquire at least a majority of the Class B ordinary shares of XPAC held by the Sponsor and all of the private placement warrants
held by the Sponsor (being warrants to purchase Class A ordinary shares of XPAC) (together, the “Relevant Securities”)
and, in connection therewith, the Sponsor currently expects that new XPAC Board members and a new management team for XPAC would be appointed
by the existing XPAC Board and the existing XPAC Board members and the existing management team would resign, which would be effective
upon consummation of the Sponsor Handover or as soon as possible thereafter. The Sponsor currently expects to enter into a purchase agreement
(the “Purchase Agreement”) in relation to the Sponsor Handover prior to the filing of a definitive proxy statement
with the SEC in connection with the Extension Meeting (as defined below).
The Sponsor currently expects that the Purchase
Agreement would provide that consummation of the Sponsor Handover would be conditional on, among other things, (i) shareholder approval
of certain matters (the “Extension Proposals”), including proposed amendments to the Memorandum and Articles to be
submitted to XPAC’s shareholders at an extraordinary general meeting of shareholders to, among other things, change the name of
XPAC and to extend the period of time for XPAC to complete an initial business combination (the “Extension Meeting”),
and (ii) the New Sponsor joining as a party to the letter agreement dated July 29, 2021 entered into between XPAC, the Sponsor
and XPAC’s officers and directors.
On the date hereof, XPAC filed
a preliminary proxy statement with the SEC relating to the Extension Meeting and the Extension Proposals.
If the Extension Proposals
are not approved by XPAC’s shareholders in the Extension Meeting to be held in due course, or if the Extension Proposals are not
implemented, and if XPAC does not complete a business combination on or before the Original Termination Date, then as contemplated by
and in accordance with the Memorandum and Articles, XPAC would (i) on the Original Termination Date, cease all operations, except
for the purpose of winding up; (ii) as promptly as reasonably possible but not more than ten business days thereafter, complete the
redemption of all issued and outstanding 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 XPAC (less taxes
payable and up to $100,000 of interest to pay dissolution expenses and which interest shall be net of any taxes payable), divided by the
number of the then-outstanding Public Shares, which redemption will completely extinguish Public Shareholders’ rights as shareholders
(including the right to receive further liquidation distributions, if any); and (iii) as promptly as reasonably possible following
such redemption and subject to the approval of XPAC’s remaining shareholders after such redemption and the XPAC Board, liquidate
and dissolve, subject in each case to XPAC’s obligations under Cayman Islands law to provide for claims of creditors and the requirements
of other applicable law.
Additional Information and Where to Find It
The Extension Proposals will
be submitted to the shareholders of XPAC for their consideration. XPAC has, on the date hereof, filed a preliminary proxy statement with
the SEC and XPAC expects that a definitive proxy statement would, in due course, be distributed to XPAC’s shareholders in connection
with XPAC’s solicitation for proxies for the vote by XPAC’s shareholders in connection with the Extension Proposals. In due
course, XPAC expects to mail a definitive proxy statement and other relevant documents to its shareholders as of June 29, 2023 (the
record date established for voting on the Extension Proposals). XPAC’S SHAREHOLDERS AND OTHER INTERESTED PERSONS ARE URGED TO READ
THE PRELIMINARY PROXY STATEMENT AND ANY AMENDMENTS THERETO AND, ONCE AVAILABLE, THE DEFINITIVE PROXY STATEMENT IN CONNECTION WITH XPAC’S
SOLICITATION OF PROXIES FOR ITS EXTENSION MEETING TO BE HELD TO APPROVE, AMONG OTHER THINGS, THE EXTENSION PROPOSALS, BECAUSE THESE DOCUMENTS
WILL CONTAIN IMPORTANT INFORMATION ABOUT XPAC AND THE MATTERS REFERRED TO HEREIN. Shareholders may also obtain a copy of the preliminary
or definitive proxy statement, once available, as well as other documents filed with the SEC regarding the Extension Proposals and other
documents filed with the SEC by XPAC, without charge, at the SEC’s website located at www.sec.gov or by written request sent to
XPAC, 55 West 46th Street, 30th Floor, New York, NY 10036, United States.
INVESTMENT IN ANY SECURITIES
DESCRIBED HEREIN HAS NOT BEEN APPROVED OR DISAPPROVED BY THE SEC OR ANY OTHER REGULATORY AUTHORITY NOR HAS ANY AUTHORITY PASSED UPON OR
ENDORSED THE MERITS OF THE OFFERING OR THE ACCURACY OR ADEQUACY OF THE INFORMATION CONTAINED HEREIN. ANY REPRESENTATION TO THE CONTRARY
IS A CRIMINAL OFFENSE.
Participants in the Solicitation
XPAC and certain of its directors
and executive officers may, under SEC rules, be deemed to be participants in the solicitations of proxies from XPAC’s shareholders
in connection with the Extension Proposals. Information regarding the persons who may, under SEC rules, be deemed participants in the
solicitation of XPAC’s shareholders in connection with the Extension Proposals are set forth in XPAC’s proxy statement that
has been filed with the SEC. You can find more information about XPAC’s directors and executive officers and their respective interests
in XPAC in XPAC’s final prospectus that forms a part of XPAC’s Registration Statement on Form S-1 (Reg No. 333-256097),
filed with the SEC pursuant to Rule 424(b)(4) on August 2, 2021 (the “IPO Prospectus”), and each Annual
Report on Form 10-K that XPAC files with the SEC from time to time. Additional information regarding the participants in the proxy
solicitation and a description of their direct and indirect interests will be included in the proxy statement when it becomes available.
Shareholders and other interested persons are urged to read the definitive proxy statement carefully when it becomes available before
making any voting or investment decisions. You may obtain free copies of these documents from the sources indicated above.
No Offer or Solicitation
This communication is for
informational purposes only. This communication shall not constitute a “solicitation” as defined in Section 14 of the
Exchange Act. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities, or a solicitation
of any vote, proxy or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
Change in Majority of Directors of XPAC
Consummation of the Sponsor
Handover would involve the election or designation of directors constituting a majority of the directors of XPAC otherwise than at a meeting
of shareholders of XPAC. Therefore, pursuant to Section 14(f) of the Exchange Act and Rule 14f-1 thereunder, XPAC will
be required to file with the SEC and mail to its shareholders an information statement on Schedule 14f-1 in connection with such change
in the majority of the directors of XPAC (the “Schedule 14F”), which change is not permitted to become effective prior
to the date that is ten days after the mailing of the Schedule 14F. XPAC currently expects that the Schedule 14F would be filed with the
SEC and mailed to its shareholders substantially concurrently with the filing and mailing of the definitive proxy statement in connection
with the Extension Meeting.
Forward-Looking Statements
The information in this communication
includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States
Private Securities Litigation Reform Act of 1995.
Forward-looking statements
may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,”
“intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target”,
“may”, “predict”, “should”, “would”, “potential”,
“seem”, “future”, “outlook” or other similar expressions (or
negative versions of such words or expressions) that predict or indicate future events or trends or that are not statements of
historical matters. These forward-looking statements include, but are not limited to, statements regarding the Extension Meeting proposed
to be held, whether or not the Extension Proposals will be approved by XPAC’s shareholders, whether or not the Public Shares will
be redeemed, whether or not XPAC will liquidate and dissolve, whether or not the Purchase Agreement (or other agreements in connection
with the Sponsor Handover will be entered into), whether or not the Sponsor Handover will be completed, whether or not the Class A
Ordinary Shares, Public Warrants and the Units will be delisted from Nasdaq, the ability of the XPAC to complete an initial business combination,
and the timing of, and expectations in relation to, any of the foregoing matters. These statements are based on various assumptions, whether
or not identified in this communication, and on the current expectations of XPAC’s management and are not predictions of actual
events. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be
relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events
and circumstances are difficult or impossible to predict and will differ from assumptions, and such
differences may be material. Many actual events and circumstances are beyond the control of XPAC.
These forward-looking statements
are subject to a number of risks and uncertainties, including those factors discussed in (i) the IPO Prospectus; (ii) XPAC’s
Annual Report on Form 10-K for the fiscal year ended December 31, 2021, which was filed with the SEC on March 30, 2022,
as amended by an amendment filed with the SEC on September 9, 2022; (iii) XPAC’s Quarterly Report on Form 10-Q for
the quarterly period ended March 31, 2022, which was filed with the SEC on May 13, 2022; and (iv) XPAC’s Quarterly
Report on Form 10-Q for the quarterly period ended June 30, 2022, which was filed with the SEC on August 22, 2022, in each
case, under the heading “Risk Factors,” and other documents that XPAC has filed,
or will file, with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual events or results could
differ materially from the events or results implied by these forward-looking statements. There may be additional risks that XPAC does
not presently know or that XPAC does not currently believe are immaterial that could also cause actual events or results to differ from
those contained in the forward-looking statements. In addition, forward-looking statements reflect XPAC’s plans or forecasts of
future events and views as of the date of this communication. XPAC anticipates that subsequent events and developments may cause XPAC’s
assessments to change. However, while XPAC may elect to update these forward-looking statements at some point in the future, except to
the extent required by applicable law, XPAC specifically disclaims any obligation to do so. These forward-looking statements should not
be relied upon as representing XPAC’s assessments as of any date subsequent to the date of this communication. Accordingly, undue
reliance should not be placed upon the forward-looking statements.