Cayman Islands | 6770 | N/A | ||||
(State or other jurisdiction of incorporation or organization) | (Primary Standard Industrial Classification Code Number) | (I.R.S. Employer Identification Number) | ||||
Gil Savir, Esq. Paul Hastings LLP 200 Park Avenue New York, New York 10166 (212) 318-6000 | Brandon J. Bortner, Esq. Paul Hastings LLP 2050 M Street NW Washington, DC 20036 (202) 551-1700 | Christopher J. DeCresce, Esq. Freshfields US LLP 3 World Trade Center 175 Greenwich Street New York, NY 10007 (212) 277-4000 | ||||
Large accelerated filer | ☐ | Accelerated filer | ☐ | ||||||||||||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | ||||||||||||
Emerging growth company | ☒ | ||||||||||||||
Per Unit | Total | |||||
Price to Public | $10.00 | $152,170,000 | ||||
Underwriting Discounts and Commissions(1) | $0.05 | $750,000 | ||||
Proceeds, before expenses, to us | $9.95 | $151,420,000 | ||||
(1) | See “Underwriting” for a description of underwriting compensation payable to the underwriters. |
As of December 31, 2024 | |||||||||||||||||||||||||||
Offering Price of $10.00 per Unit | 25% of Maximum Redemptions | 50% of Maximum Redemptions | 75% of Maximum Redemptions | Maximum Redemptions | |||||||||||||||||||||||
NTBV | Difference between NTBV and Offering Price | NTBV | Difference between NTBV and Offering Price | NTBV | Difference between NTBV and Offering Price | NTBV | Difference between NTBV and Offering Price | NTBV | Difference between NTBV and Offering Price | ||||||||||||||||||
Assuming Full Exercise of Over-Allotment Option | |||||||||||||||||||||||||||
7.43 | 2.57 | 6.84 | 3.16 | 5.90 | 4.10 | 4.21 | 5.79 | 0.18 | 9.82 | ||||||||||||||||||
Assuming No Exercise of Over-Allotment Option | |||||||||||||||||||||||||||
7.41 | 2.59 | 6.81 | 3.19 | 5.88 | 4.12 | 4.19 | 5.81 | 0.20 | 9.80 | ||||||||||||||||||
• | “Advisors” are to Meridien Peak, which was engaged by our Sponsor and Meteora, which was engaged by us; |
• | “amended and restated memorandum and articles of association” are to our amended and restated memorandum and articles of association to be in effect upon the completion of this offering; |
• | “Companies Act” are to the Companies Act (As Revised) of the Cayman Islands as the same may be amended from time to time; |
• | “completion window” is the period following the completion of this offering at the end of which, if we have not completed our initial business combination, we will redeem 100% of the public shares at a per share price, payable in cash, equal to the aggregate amount then on deposit in the trust account, including interest (less taxes payable and up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding public shares, subject to applicable law and certain conditions and as further described herein. The completion window ends 15 months from the closing of this offering (or up to 21 months by means of up to two three-month extensions after the closing of this offering by depositing into the trust account, for each three-month extension, $1,521,700, or up to $1,749,955 if the underwriters’ over-allotment option is exercised in full (representing $0.10 per unit of the total units sold in this offering)). In addition, our shareholders can also vote at any time to amend our amended and restated memorandum and articles of association to modify the amount of time we will have to complete an initial business combination, in each case as further described herein; provided that if our completion window is extended from 15 months to up to 21 months by depositing additional funds into the trust account, for each three-month extension, $1,521,700, or up to $1,749,955 if the underwriters’ over-allotment option is exercised in full (representing $0.10 per unit of the total units sold in this offering), our shareholders will not be entitled to vote on such an extension or to redeem their shares as a result of the extension, for up to two three-month extensions; |
• | “directors” are to our directors (including our director nominees named in this prospectus); |
• | “equity-linked securities” are to any debt or equity securities that are convertible, exercisable or exchangeable for our Class A ordinary shares issued in a financing transaction in connection with our initial business combination, including but not limited to a private placement of such securities; |
• | “founder shares” are to our Class B ordinary shares and the Class A ordinary shares issued upon the automatic conversion thereof at the time of our initial business combination or at any time prior thereto at the option of the holder thereof as provided herein; |
• | “initial shareholders” are to our sponsor and the other holders of our founder shares prior to this offering (or their permitted transferees); |
• | “letter agreement” refers to the letter agreement, the form of which is filed as an exhibit to the registration statement of which this prospectus forms a part; |
• | “management” or our “management team” are to our officers and directors; |
• | “Meteora” refers to Meteora Capital, LLC, an investment adviser specializing in investments related to special purpose acquisition companies |
• | “Meridien Peak” refers to Meridien Peak, a New Jersey limited liability company |
• | “ordinary resolution” are to a resolution of the company passed by the affirmative vote of a simple majority of the votes cast by such shareholders as, being entitled to do so, vote in person or, where proxies are allowed, by proxy at a general meeting of the company, or a resolution approved in writing by all of the holders of the issued shares entitled to vote on such matter (or such lower threshold as may be allowed under the Companies Act from time to time); |
• | “ordinary shares” are to our Class A ordinary shares and our Class B ordinary shares; |
• | “Private Placement Investor” is to that certain institutional investor who will subscribe to purchase directly from us an aggregate of 37,500 private placement units and 75,000 restricted Class A ordinary shares (or 30,000 private placement securities) at a combined price of $10.00 per private placement security for an aggregate purchase price of $300,000 in private placements that will close simultaneously with the closing of this offering; |
• | “private placement securities” are to the private placement units and the restricted Class A shares, collectively; |
• | “private placement rights” are to the rights underlying the private placement units; |
• | “private placement shares” are to the Class A ordinary shares sold as part of the private placement units; |
• | “private placement units” are to the 506,250 units issued to our sponsor and the Private Placement Investor (whether or not the over-allotment option is exercised), of which 375,000 units would be purchased indirectly by the sponsor non-managing members, in private placements that will close simultaneously with the closing of this offering; |
• | “private placement warrants” are to the warrants sold as part of the private placement units; |
• | “public rights” are to the rights sold as part of the units in this offering (whether they are subscribed for in this offering or acquired in the open market); |
• | “public shares” are to our Class A ordinary shares sold as part of the units in this offering (whether they are purchased in this offering or thereafter in the open market); |
• | “public shareholders” are to the holders of our public shares, including our sponsor, officers and directors and the sponsor non-managing members to the extent our sponsor, officers, directors or sponsor non-managing members purchase public shares, provided that each of their status as a “public shareholder” shall only exist with respect to such public shares; |
• | “public warrants” are to the warrants sold as part of the units in this offering (whether they are purchased in this offering or thereafter in the open market); |
• | “restricted Class A shares” are to 1,012,500 class A ordinary shares, par value $0.0001 per share, which would vest only upon the consummation of our initial business combination; |
• | “rights” are to our rights, which include the public rights as well as the private placement rights to the extent they are no longer held by the initial purchasers of the private placement units or their permitted transferees; |
• | “SPACs” are to special purpose acquisition companies; |
• | “special resolution” are to a resolution of the company passed by the affirmative vote of at least a two-thirds (2/3) majority (or such higher approval threshold as specified in the company’s amended and restated memorandum and articles of association) of the votes cast by such shareholders as, being entitled to do so, vote in person or, where proxies are allowed, by proxy at a general meeting of the company of which notice specifying the intention to propose the resolution as a special resolution has been duly given, or a resolution approved in writing by all of the holders of the issued shares entitled to vote on such matter (or such lower threshold as may be allowed under the Companies Act from time to time); |
• | “sponsor” are to Globa Terra Management LLC, a Cayman Islands limited liability company; Global Terra Sponsor LLC is the managing member of our sponsor; Agustin Tristan Aldave, our Chief Executive Officer and a member of our board of directors, controls Global Terra Sponsor LLC; |
• | “sponsor non-managing members” means institutional investors (none of which are affiliated with any member of our management or any other investor) that have expressed an interest in purchasing non-managing membership interests our sponsor reflecting interests in an aggregate of (i) 375,000 of the 468,750 private placement units to be purchased by our sponsor) and (ii) 750,000 of the 937,500 restricted Class A shares to be purchased by our sponsor, at a price of $10.00 per interest in each private placement security ($3,000,000 in the aggregate), in private placements that will close simultaneously with the closing |
• | “underwriters’ option to purchase additional units” are to the underwriters’ 45-day option to purchase up to an additional units to cover over-allotments, if any; |
• | “warrants” are to our public warrants and private placement warrants; |
• | “warrant agreement” are to the public warrant agreement when discussing the public warrants, and to the private warrant agreement when discussing the private warrants; |
• | “warrant exercise date” are to the date on which the warrants will become exercisable, which is 30 days after the completion of our initial business combination; |
• | “warrant expiration date” are to the date on which the warrants expire, which is five years after the completion of our initial business combination or earlier upon redemption or liquidation; and |
• | “we,” “us,” “company” or “our company” are to Globa Terra Acquisition Corporation, a Cayman Islands exempted company. |
• | Bite Acquisition Corp. (“BITE”) completed its initial public offering in February 2021 and consummated its initial business combination in June 2024 with Above Food Corp (“ABVE”), approximately 40 months after its initial public offering. Approximately 3.8% of BITE’s public shares were redeemed in connection with two extensions to consummate an initial business combination and approximately 29.1% of BITE’s public shares were redeemed in connection with the consummation of its initial business combination with ABVE. As of April 11, 2025, ABVE’s stock price was $0.49. |
• | Digital World Acquisition Corp. (“DWAC”) completed its initial public offering in September 2021 and consummated its initial business combination in March 2024 with Trump Media & Technology Group Corp (“TMTG”), approximately 31 months after its initial public offering. Approximately 0.1% of DWAC’s public shares were redeemed during the seven three-month extensions, and approximately 0.02% of DWAC’s public shares were redeemed in connection with the consummation of its initial business combination with TMTG. As of April 11, 2025, TMTG’s stock price was $18.89. |
• | In 2021, members of our management team founded Agrinam Acquisition Corporation (“Agrinam”), a blank check company, listed on the Toronto Stock Exchange (TSX), formed for substantially similar purposes as our company. Additionally, members of our management team serve as the management team for Agrinam. Agrinam completed its initial public offering in 2022, raising total proceeds of $138,000,000 through the sale of 1,800,000 Restricted Class A Voting Units. While Agrinam had previously identified a target for its business combination, it terminated the business combination agreement on September 19, 2024 and has not yet identified a new target. On December 12, 2024, at the fourth special meeting of shareholders, shareholders of Agrinam approved the extension of the date by which the company must consummate a qualifying acquisition from December 15, 2024 to June 15, 2025. The company may be subject to delisting from the Toronto Stock Exchange if it fails to consummate an initial business combination by then without shareholders’ approval of an extension of the combination period. As of January 6, 2025, an aggregate of 10,500 Class A Restricted Voting Shares of Agrinam were redeemed, approximately $1.59 million was held in the escrow account and 1,892 Class A Restricted Voting Shares were issued and outstanding. On March 14, 2025, Agrinam and Blue Energy and Electricity, S.A. de C.V. (“Blue Energy”), a leading independent energy supplier, specializing in the provision of renewable electricity, solar panels and battery storage in Mexico, announced they have entered into a definitive business combination agreement. Under the terms of the agreement, Blue Energy will merge with Agrinam, through a share exchange to become a publicly traded company listed on the TSX, pending regulatory approval. As a result, there is a material conflict of interest between Agrinam and our company as we and Agrinam are both engaged in the business of engaging in business combinations. We expect that Agrinam will generally have priority over us with respect to acquisition opportunities until it completes its initial business combination, enters into a contractual agreement that would restrict its ability to engage in material discussions regarding a potential initial business combination, or ceases operations and liquidates its trust account. |
Entity / Individual | Amount of Compensation to be Received or Securities Issued or to be Issued | Paid or to be Paid | ||||
$15,000 per month, commencing on the first date on which our securities are listed on Nasdaq | Office space, administrative and shared personnel support services | |||||
Globa Terra Management LLC | 5,833,183(1)(5) Class B Ordinary Shares | $25,000 | ||||
468,750 private placement units and 937,500 restricted Class A shares (whether or not the over-allotment option is exercised)(2)(3) | $3,750,000 (whether or not the over-allotment option is exercised) | |||||
Reimbursement for any out-of-pocket expenses related to identifying, investigating and completing an initial business combination | Expenses incurred in connection with identifying, investigating and completing an initial business combination | |||||
Up to $2,500,000 in working capital loans, which loans may be convertible into private placement units of the post-business combination entity at the price of $10.00 per unit(4) | Working capital loans to finance transaction costs in connection with an initial business combination | |||||
(1) | The Class B ordinary shares and the Class A ordinary shares issuable in connection with the conversion of the Class B ordinary shares may result in material dilution to our public shareholders due to the nominal price of $0.0043 per share at which our sponsor purchased the Class B ordinary shares and/or the anti-dilution rights of our Class B ordinary shares that may result in an issuance of Class A ordinary shares on a greater than one-to-one basis upon conversion. Our sponsor, directors and officers and their affiliates may receive additional compensation and/or may be issued additional securities in connection with an initial business combination, including securities that may result in material dilution to public shareholders. See “Risk Factors — Risks Relating to our Sponsor, Advisors and Management Team — The nominal purchase price paid by our sponsor for the founder shares and the vesting of the restricted Class A shares may significantly dilute the implied value of your public shares in the event we consummate an initial business combination, and our sponsor is likely to make a substantial profit on its investment in us in the event we consummate an initial business combination, even if the business combination causes the trading price of our ordinary shares to decline materially” on page 81, “— Risks Relating to our Securities — We may issue additional ordinary shares or preference shares to complete our initial business combination or under an employee incentive plan after completion of our initial business combination. We may also issue Class A ordinary shares upon the conversion of the Class B ordinary shares at a ratio greater than one-to-one at the time of our initial business combination as a result of the anti-dilution provisions contained in our amended and restated memorandum and articles of association. Any such issuances would dilute the interest of our shareholders and likely present other risks” on page 92, “— Our initial shareholders, either directly or indirectly, paid an aggregate of $25,000, or approximately $0.0043 per founder share, and, accordingly, you will experience immediate and substantial dilution from the purchase of our Class B ordinary shares” on page 93 and “— Unlike many other similarly structured blank check companies, our initial shareholders will receive additional Class A ordinary shares if we issue shares to consummate an initial business combination” on page 94. |
(2) | The sponsor non-managing members have expressed an interest to purchase sponsor non-managing membership interests reflecting interests in an aggregate of 300,000 private placement securities to be purchased by our sponsor, at a price of $10.00 per private placement security ($3,000,000) in the aggregate) in private placements that will close simultaneously with the closing of this offering. |
(3) | Subject to each sponsor non-managing member purchasing the non-managing membership interests in our sponsor reflecting interests in an aggregate of 300,000 private placement securities. |
(4) | After the completion of this offering, our board of directors may approve additional working capital loans for the purpose of funding working capital, which loans may be converted into our private placement units, shares, rights or warrants. The Class A ordinary shares issuable in connection with the exercise of the private placement warrants and private placement rights, as well as any Class A ordinary shares issued in connection with conversion of working capital loans into additional private placement units (as described in this prospectus), may result in material dilution to our public shareholders. See “Description of Securities — Warrants — Private placement units” on page 181; see also “Risk Factors — Risks Relating to our Sponsor, Advisors and Management Team — The nominal purchase price paid by our sponsor for the founder shares and the vesting of the restricted Class A shares may significantly dilute the implied value of your public shares in the event we consummate an initial business combination, and our sponsor is likely to make a substantial profit on its investment in us in the event we consummate an initial business combination, even if the business combination causes the trading price of our ordinary shares to decline materially” on page 81, “— Risks Relating to our Securities — We may issue additional ordinary shares or preference shares to complete our initial business combination or under an employee incentive plan after completion of our initial business combination. We may also issue Class A ordinary shares upon the conversion of the Class B ordinary shares at a ratio greater than one-to-one at the time of our initial business combination as a result of the anti-dilution provisions contained in our amended and restated memorandum and articles of association. Any such issuances would dilute the interest of our shareholders and likely present other risks” on page 92, “— Our initial shareholders, either directly or indirectly, paid an aggregate of $25,000, or approximately $0.0043 per founder share, and, accordingly, you will experience immediate and substantial dilution from the purchase of our Class B ordinary shares” on page 93 and “— Unlike many other similarly structured blank check companies, our initial shareholders will receive additional Class A ordinary shares if we issue shares to consummate an initial business combination” on page 94. |
(5) | If we increase or decrease the size of this offering we will effect a capitalization or share repurchase or redemption or other appropriate mechanism, as applicable, with respect to our Class B ordinary shares immediately prior to the consummation of the offering in such amount as to maintain the ownership of our initial shareholders at 25% of the issued and outstanding ordinary shares upon the consummation of this offering. Our public shareholders may incur material dilution due to such anti-dilution adjustments that result in the issuance of Class A ordinary shares on a greater than one-to-one basis upon conversion. |
Subject Securities | Expiration Date | Persons Subject to Restrictions | Exceptions to Transfer Restrictions | ||||||
Founder Shares | Earlier of one year after completion of our initial business combination; or if the closing price of our Class A ordinary shares equals or exceeds $12.00 per Class A ordinary share (as adjusted for share sub-divisions, share dividends, reorganizations, recapitalizations and other similar transactions) for any 20 trading days within any 30-trading day period commencing any time 150 days after completion of our initial business combination | Globa Terra Management LLC, Agustin Tristan Aldave, Katherine Chiles, Alejandro F. Garza, Edward Joseph Preble, Jesus Demetrio Tueme, Kelly Burke, Jeff Smith, the Private Placement Investor Meridien Peak, (subject to Globa Terra Management LLC transferring certain founder shares to Meridien Peak, as further described in this prospectus) | Transfers permitted (i) to any officer, director, or employee of the Company, including to a family member or affiliate of such officer, director, or employee; (ii) by private sales or transfers, in each case, made in connection with the consummation of our initial business combination at prices no greater than the price at which the securities were originally purchased; (iii) in the event of our liquidation prior to the completion of our initial business combination; (iv) by virtue of the laws of the Cayman Islands or our sponsor’s limited liability company agreement upon dissolution of our sponsor; and (v) in the event of our completion of a liquidation, merger, share exchange, reorganization or other similar transaction which results in all of our public shareholders having the right to exchange their Class A ordinary shares for cash, securities or other property subsequent to the completion of our initial business combination | ||||||
Subject Securities | Expiration Date | Persons Subject to Restrictions | Exceptions to Transfer Restrictions | ||||||
Private Placement Units | 180 days after the completion of our initial business combination | Globa Terra Management LLC and the Private Placement Investor | Same as above | ||||||
Restricted Class A Shares | 90 days after completion of our initial business combination | Same as above | Same as above | ||||||
Any units, warrants, ordinary shares or any other securities convertible into, or exercisable or exchangeable for, any units, ordinary shares, founder shares or warrants | 180 days | Same as above | The representative in its sole discretion may release any of the securities subject to these lock-up agreements at any time without notice, other than in the case of the officers and directors, which shall be with notice. Our sponsor, officers and directors are also subject to separate transfer restrictions on their founder shares and private placement units pursuant to the letter agreement described in the immediately preceding paragraphs. | ||||||
• | Depth of Team and Access to Resources. We have a dedicated management team with a track record of executing on transactions, and we believe we have the resources to source and evaluate a larger number of potential transactions relative to other SPACs. |
• | Sourcing Channels and Leading Industry Relationships. We believe our capabilities, reputation and deep industry relationships will provide us with a differentiated pipeline of acquisition opportunities that would be difficult for other participants in the market to replicate. |
• | Prior SPAC Experience. Certain members of our management team have significant SPAC experience, as founders, investors or advisors in SPAC transactions, including serving as executive officers of Bite Acquisition Corp, Digital World Acquisition Corp. and Agrinam. We believe their experience in SPAC transactions provide us with a distinctive advantage with respect to understanding the process of sourcing, evaluating and executing an initial business combination, as well as positioning us as an attractive partner with prospective target companies compared to first-time SPACs with no such prior experience. |
• | Execution and Structuring Capability. We believe our management team’s expertise and reputation will allow us to source and complete transactions possessing structural attributes that create an attractive investment thesis. These types of transactions are typically complex and require creativity, industry knowledge and expertise, rigorous due diligence, and extensive negotiations and documentation. We believe that by focusing our investment activities on these types of transactions, we can generate investment opportunities that have attractive risk/reward profiles based on their valuations and structural characteristics. |
• | Public Company Experience. Certain members of our management team have extensive experience as public company executives and/or board members. This experience will serve as a key competitive advantage in selecting companies that will benefit from going public, positioning us as an attractive partner to management teams of potential target companies, and help to create long-term value post-closing of the initial business combination. |
• | Business Fundamentals: We will target companies with strong fundamentals that align with our growth strategy in the agribusiness and water sectors. Ideal targets will have an enterprise value exceeding twice the size of ours and display year-over-year revenue growth, with EBITDA and cash-flow positivity. These companies should operate in multiple countries, enabling expansion and operational synergies through vertical integration. We will also seek founders who are willing to retain a meaningful stake in the public company, ensuring alignment with long-term value creation. Additional factors include attractive valuations, a large total addressable market, and a competitive industry position. |
• | Public Company Ready: We will seek to acquire a company that is well-positioned to be a public company in terms of scale and size, and a company that public equity market investors will understand and value. While we believe our public company experience will be a significant asset as a transaction partner to private companies, we intend to avoid companies that have significant deficiencies in financial reporting or general public company readiness. |
• | Would Benefit Distinctly from our Capabilities: We will seek to acquire a business where we can tangibly improve the operations and create long term value for our shareholders. In particular, we believe our experience in operating and changing public companies and/or serving on public company boards would be a value-add to the management teams and boards of potential target companies. We expect our strategy to draw heavily from the private equity world, focusing on creating long-term value through a combination of disciplined investment practices, operational improvements, and strategic growth initiatives. Leveraging our team's deep experience in private equity, we emphasize identifying high-quality businesses with strong fundamentals, scalability, and alignment with our vertical integration strategy. We aim to employ a rigorous due diligence process to evaluate targets, ensuring that they meet key criteria such as robust financial performance, competitive positioning, and alignment with certain principles that we may pre-define. Once a business combination is completed, we intend to apply private equity-style operational enhancements, fostering revenue growth and operational efficiency. By leveraging our network of private equity professionals, institutional investors, and strategic partners, we aim to bring transformative value to the target businesses, aligning our shareholders' interests with those of management teams to drive sustainable growth and superior returns. This approach reflects our commitment to unlocking value beyond the transaction, ensuring that we position our targets for long-term success in the competitive agribusiness and water technology sectors. We will look for targets where the majority of the production comes from Latin America where we can achieve higher yields due to lower labor and land costs and where the distribution occurs in the United States and/or Canada, or companies in the primary sector which have the potential to merge with companies in the value-added sector and thereby create a vertically integrated company. Our team will also look for companies involved in water treatment, desalination, pipelines, and water solutions looking to address the water crisis. |
• | Innovators within an Existing Market. We will seek a company which embraces technology and the innovation of its products and/or processes within an existing market, and burden of developing a new and yet to be proven marketplace or form of technology. |
• | Maintains Strong Environmental, Social and Corporate Governance Principles. We intend to seek a target that maintains strong environmental, social, and corporate governance standards which make use of responsible and ethical supply chains and prioritize human rights and sustainability. We believe ESG integration is fundamental to operating a productive, profitable and sustainable Agribusiness. To that end, we intend to target businesses following business models which implements the principles of responsible investment. |
• | Has a Dedicated and Proven Management Team: We will seek to acquire a business with a professional management team whose interests are aligned with those of our investors. Where necessary, we may also look to complement and enhance the capabilities of the target business’s management team by recruiting additional talent through our network of contacts. |
• | Targets where the majority of primary production will come from Latin America, where businesses may be able to achieve higher yields due to lower labor and land costs, and where the value-added distribution occurs in the United States and/or Canada, driving potentially higher margins. This strategy seeks to support reliability of supply and is also designed to enable higher margin capture with an integrated value chain from the farm to the end retail market; or |
• | Companies in the primary sector which have the potential to merge with businesses in the value-added sector to create a vertically integrated company. |
• | Implementation of robotics, AI and machine learning platforms to increase productivity, efficiency and reduce labor costs. |
• | Farm digitization in connection with the rise of ESG adoption. |
• | Fintech transformation in agriculture, comparable to the Fintech impact on the student loan and mortgage markets. |
• | Increasing adoption of alternative and cellular protein providing consumers around the world with safe, sustainable food. |
• | Adoption of food waste solutions which we believe will be recognized as both a good business practice and an essential tool to help mitigate hunger around the world. |
• | Adoption of food as a central effort to prevent chronic disease and improve health outcomes. |
• | Transformation of food brands and grocers towards “personalize or perish.” |
• | C- Grade: U.S. drinking water infrastructure received a “C-” grade on the American Society of Civil Engineers 2021 Infrastructure Report Card and U.S. wastewater infrastructure received a “D+” grade. |
• | 16% water loss: In the United States, due to aging infrastructure, it is estimated that the U.S. loses 16% of its treated water before it even reaches the customer, representing more than seven billion gallons of treated water lost each day. |
• | 700-850 main breaks a day, costing $3 billion per year: Studies suggest that between 700 and 850 water main breaks occur each day in North America, causing more than $3 billion in repair costs annually. |
• | $600 billion in investment needed: The U.S. EPA projects $472.6 billion is needed to maintain drinking water infrastructure between 2015 and 2035. Combined with wastewater needs, the EPA projects more than $600 billion is needed over 20 years for necessary infrastructure improvements. |
• | $3.9 billion invested each year by 10 largest private water companies: The ten largest water companies in the U.S. invested more than $3.9 billion in 2021 to improve community tap water systems. These are dollars coming from the private sector and not out of a municipal budget. |
• | About two billion people worldwide do not have access to safe drinking water today, and roughly half of the world’s population is experiencing severe water scarcity for at least part of the year. These numbers are expected to increase, exacerbated by climate change and population growth. |
• | Only 0.5 per cent of water on Earth is useable and available freshwater – and climate change is dangerously affecting that supply. Over the past twenty years, terrestrial water storage – including soil moisture, snow and ice – has dropped at a rate of 1 cm per year, with major ramifications for water security. |
• | Water supplies stored in glaciers and snow cover are projected to further decline over the course of the century, thus reducing water availability during warm and dry periods in regions supplied by melt water from major mountain ranges, where more than one-sixth of the world’s population currently live. |
• | Sea-level rise is projected to extend salinization of groundwater, decreasing freshwater availability for humans and ecosystems in coastal areas. |
• | Limiting global warming to 1.5°C compared to 2°C would approximately halve the proportion of the world population expected to suffer water scarcity, although there is considerable variability between regions. |
• | Water quality is also affected by climate change, as higher water temperatures and more frequent floods and droughts are projected to exacerbate many forms of water pollution – from sediments to pathogens and pesticides. |
• | Climate change, population growth and increasing water scarcity will put pressure on food supply as most of the freshwater used, about 70 percent on average, is used for agriculture (it takes between 2000 and 5000 liters of water to produce a person’s daily food). |
• | retailers are demanding that their suppliers adopt ESG best practices which are aligned with their corporate sustainability strategies; |
• | end-customers are demanding environmental best practices from the manufacturers and distributors of the products they purchase; |
• | ESG best practices, once successfully integrated into the operations of companies, can translate into cost efficiencies and improved productivity metrics; and |
• | there is a trend of a fast growing sustainable finance market which prioritizes the opportunity to link sustainability to better cost of capital. |
• | one Class A ordinary share; |
• | three-fourths of one redeemable warrant to purchase one Class A ordinary share; and |
• | one right to receive one-twentieth (1/20) of one ordinary share upon consummation of our initial business combination. No fractional shares will be issued upon exchange of the rights, so you must hold rights in multiples of 20 in order to receive shares for all of your rights upon closing of a business combination. |
(1) | Assumes no exercise of the underwriters’ option to purchase additional units and the forfeiture by our initial shareholders of 760,850 founder shares and includes an aggregate of 506,250 Class A ordinary shares included in the private placement units. |
(2) | Consists solely of founder shares and includes up to 760,850 shares that are subject to forfeiture by our initial shareholders, depending on the extent to which the underwriters’ option to purchase additional units is exercised. |
(3) | Includes 15,217,000 public shares, 5,072,333 founder shares and 506,250 Class A ordinary shares underlying private placement units. |
(4) | Founder shares are classified as Class B ordinary shares, which shares automatically convert into Class A ordinary shares at the time of our initial business combination or at any time prior thereto at the option of the holder thereof, in each case, on a one-for-one basis, subject to adjustment as described below adjacent to the caption “Founder shares conversion and anti-dilution rights.” |
(5) | Does not include 102,944 restricted Class A shares, which would vest only upon the consummation of the initial business combination. |
(6) | Includes 11,412,750 public warrants and 379,687 private placement warrants underlying the private placement units. |
(7) | Includes 15,217,000 public rights and 506,250 private placement rights underlying the private placement units. |
• | in whole and not in part; |
• | at a price of $0.01 per public warrant; |
• | upon a minimum of 30 days’ prior written notice of redemption, which we refer to as the 30-day redemption period; and |
• | if, and only if, the closing price of our Class A ordinary shares equals or exceeds $18.00 per share (as adjusted for adjustments to the number of shares issuable upon exercise or the exercise price of a warrant as described under the heading “Description of Securities — Warrants — Anti-Dilution Adjustments”) for any 20 trading days within a 30-trading day period ending on the third trading day prior |
• | prior to the closing of our initial business combination, only holders of our founder shares have the right to vote on the appointment or removal of directors and on continuing the company in a jurisdiction outside the Cayman Islands (as further described herein); |
• | the founder shares are subject to certain transfer restrictions contained in a letter agreement that our initial shareholders, directors and officers will enter into with us, as described in more detail below; |
• | pursuant to such letter agreement, our initial shareholders, directors and officers will agree to waive: (1) their redemption rights with respect to any founder shares and public shares held by them, as applicable, in connection with the completion of our initial business combination; (2) their redemption rights with respect to any founder shares and public shares held by them in connection with a shareholder vote to approve an amendment to our amended and restated memorandum and articles of association (A) to modify the substance or timing of our obligation to provide for the redemption of our public shares in connection with an initial business combination or to redeem 100% of our public shares if we have not consummated our initial business combination within the completion window or (B) with respect to any other provision relating to shareholders’ rights or pre-initial business combination activity; and (3) their rights to liquidating distributions from the trust account with respect to any founder shares they hold if we fail to complete our initial business combination within the completion window (although they will be entitled to liquidating distributions from the trust account with respect to any public shares they hold if we fail to complete our initial business combination within the completion window). If we submit |
• | the founder shares are automatically convertible into our Class A ordinary shares at the time of our initial business combination or at any time prior thereto at the option of the holder thereof, on a one-for-one basis, subject to adjustment pursuant to certain anti-dilution rights, as described in more detail below; |
• | the holders of the founder shares are entitled to registration rights; and |
• | the sponsor non-managing members are not granted any shareholder or other rights in addition to those afforded to our other public shareholders, and will only be issued membership interests in the sponsor, with no right to control the sponsor or vote or dispose of any securities held by the sponsor, including the founder shares, the private placement shares or the restricted Class A shares held by the sponsor. The sponsor non-managing members are not required to (i) hold any units, Class A ordinary shares, public warrants or rights they may purchase in this offering or thereafter for any amount of time, or enter into a lock-up agreement with us or the underwriters with respect to any units, Class A ordinary shares or public warrants, (ii) vote any Class A ordinary shares they may own at the applicable time in favor of our initial business combination or (iii) refrain from exercising their right to redeem their public shares at the time of our initial business combination. The sponsor non-managing members will have the same rights to the funds held in the trust account with respect to the Class A ordinary shares underlying the units they may purchase in this offering as the rights afforded to our other public shareholders. However, if the |
• | our registration statement/proxy statement filed for our business combination transaction would disclose the possibility that our management team, sponsor or any of their respective affiliates may purchase shares, rights or warrants from public shareholders outside the redemption process, along with the purpose of such purchases; |
• | if our management team, sponsor or any of their respective affiliates were to purchase shares or warrants from public shareholders, they would do so at a price no higher than the price offered through our redemption process; |
• | our registration statement/proxy statement filed for our business combination transaction would include a representation that any of our securities purchased by our management team, sponsor, or any of their respective affiliates would not be voted in favor of approving the business combination transaction; |
• | our management team, Advisors, sponsor or any of their respective affiliates would not possess any redemption rights with respect to our securities or, if they do acquire and possess redemption rights, they would waive such rights; and |
• | we would disclose in a Form 8-K, before our general meeting to approve the business combination transaction, the following material items: |
• | the amount of our securities purchased outside of the redemption offer by our management team, sponsor or any of their respective affiliates, along with the purchase price; |
• | the purpose of the purchases by our management team, Advisors, sponsor or any of their respective affiliates; |
• | the impact, if any, of the purchases by our management team, sponsor or any of their respective affiliates on the likelihood that the business combination transaction will be approved; |
• | the identities of our security holders who sold to our management team, Advisors, sponsor or any of their respective affiliates (if not purchased on the open market) or the nature of our security holders (e.g., 5% security holders) who sold to our management team, sponsor or any of their respective affiliates; and |
• | the number of our securities for which we have received redemption requests pursuant to our redemption offer. |
• | 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. Whether or not we maintain our registration under the Exchange Act or our listing on Nasdaq, we will provide our public shareholders with the opportunity to redeem their public shares by one of the two methods listed above. Upon the public announcement of our initial business combination, if we elect to conduct redemptions pursuant to the tender offer rules, we and our sponsor will terminate any plan established in accordance with Rule 10b5-1 to purchase our Class A ordinary shares in the open market, in order 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 shareholders not tendering more than a specified number of public shares, which number will be based on the requirement that we may not redeem public shares in an amount that would cause our net tangible assets to be less than $5,000,001 (so that we do not then become 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 shareholders tender more shares than we have offered to purchase, we will withdraw the tender offer and not complete such initial business combination. If, however, shareholder approval of the transaction is required by applicable law or stock exchange listing requirement, or we decide to obtain shareholder approval for business or other reasons, we will: |
• | 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. |
• | payment to our sponsor for office space, administrative and shared personnel support services, in an amount equal to $15,000 per month, commencing on the first date on which our securities are listed on Nasdaq; |
• | reimbursement for any out-of-pocket expenses related to identifying, investigating and completing an initial business combination; |
• | repayment of loans which may be made by our sponsor, an affiliate of our sponsor or our officers and directors to finance transaction costs in connection with an intended initial business combination. Up to $2,500,000 of such loans may be convertible into private units of the post-business combination entity at a price of $10.00 per unit at the option of the lender; and |
• | Any such private units will be identical to the private placement units. Except for the foregoing, the terms of such loans, if any, have not been determined nor have any written agreements been executed with respect thereto. |
• | There is substantial doubt about our ability to continue as a going concern. |
• | We are a newly incorporated Cayman Islands exempted company with no operating history and no revenues, and you have no basis on which to evaluate our ability to achieve our business objective. |
• | Past performance by our management team, Advisors and their respective affiliates may not be indicative of future performance of an investment in us. |
• | Our shareholders may not be afforded an opportunity to vote on our proposed initial business combination, which means we may complete our initial business combination even though a majority of our shareholders do not support such a combination. |
• | Your only opportunity to affect the investment decision regarding a potential business combination may be limited to the exercise of your right to redeem your shares from us for cash. |
• | If we seek shareholder approval of our initial business combination, our initial shareholders will agree to vote in favor of such initial business combination, regardless of how our public shareholders vote. |
• | If we seek shareholder approval of our initial business combination, our management team, Advisors, sponsor or any of their respective affiliates may elect to purchase public shares, warrants or rights, which may influence a vote on a proposed business combination and reduce the public “float” of our Class A ordinary shares, public warrants or public rights. |
• | You will not be entitled to protections normally afforded to investors of many other blank check companies. |
• | You will not have any rights or interests in funds from the trust account, except under certain limited circumstances. Therefore, to liquidate your investment, you may be forced to sell your public shares, warrants or rights, potentially at a loss. |
• | If the net proceeds of this offering and the sale of the private placement securities not being held in the trust account are insufficient to allow us to operate for the 15 months (or up to 21 months if we elect to extend the completion window as described herein) following the closing of this offering, it could limit the amount available to fund our search for a target business or businesses and our ability to complete our initial business combination, and we will depend on loans from our sponsor, its affiliates or members of our management team to fund our search and to complete our initial business combination. |
• | The ability of our public shareholders to redeem their shares for cash may make our financial condition unattractive to potential business combination targets, which may make it difficult for us to enter into a business combination with a target. |
• | We are not required to obtain an opinion from an independent registered public accounting or investment banking firm, and consequently, you may have no assurance from an independent source that the price we are paying for the business is fair to our shareholders from a financial point of view. |
• | We may not be able to consummate an initial business combination within the prescribed time frame, in which case we would cease all operations except for the purpose of winding up and we would redeem our public shares and liquidate. |
• | We may engage in a business combination with one or more target businesses that have relationships with entities that may be affiliated with, managed by or otherwise associated with, members of our management group, Advisors, sponsor or initial shareholders. |
• | Since our sponsor, executive officers, directors, and initial shareholders will lose their entire investment in us if our initial business combination is not completed (other than with respect to public shares they may acquire during or after this offering), a conflict of interest may arise in determining whether a particular business combination target is appropriate for our initial business combination. |
• | Our sponsor controls a substantial interest in us and thus may exert a substantial influence on actions requiring a shareholder vote, potentially in a manner that you do not support. |
• | Our management team, Advisors, sponsor, initial shareholders and their respective affiliates allocate their time to other businesses thereby causing conflicts of interest in their determination as to how much time to devote to our affairs. This conflict of interest could have a negative impact on our ability to complete our initial business combination. |
• | Our management team, Advisors, sponsor, initial shareholders and their respective affiliates may have competitive pecuniary interests that conflict with our interests. |
• | We may not be able to complete an initial business combination with a U.S. target company if such initial business combination is subject to U.S. foreign investment regulations and review by a U.S. government entity such as the Committee on Foreign Investment in the United States (CFIUS), or ultimately prohibited. |
• | The other risks and uncertainties discussed in “Risk Factors” and elsewhere in this prospectus. |
As of December 31, 2024 | |||||||||||||||||||||||||||
Offering Price of $10.00 per Unit | 25% of Maximum Redemptions | 50% of Maximum Redemptions | 75% of Maximum Redemptions | Maximum Redemptions | |||||||||||||||||||||||
NTBV | Difference between NTBV and Offering Price | NTBV | Difference between NTBV and Offering Price | NTBV | Difference between NTBV and Offering Price | NTBV | Difference between NTBV and Offering Price | NTBV | Difference between NTBV and Offering Price | ||||||||||||||||||
Assuming Full Exercise of Over-Allotment Option | |||||||||||||||||||||||||||
7.43 | 2.57 | 6.84 | 3.16 | 5.90 | 4.10 | 4.21 | 5.79 | 0.18 | 9.82 | ||||||||||||||||||
Assuming No Exercise of Over-Allotment Option | |||||||||||||||||||||||||||
7.41 | 2.59 | 6.81 | 3.19 | 5.88 | 4.12 | 4.19 | 5.81 | 0.20 | 9.80 | ||||||||||||||||||
No Redemptions | 25% | 50% | 75% | 100% | |||||||||||||||||||||||||||||||||||
Without Over- Allotment | With Over- Allotment | Without Over- Allotment | With Over- Allotment | Without Over- Allotment | With Over- Allotment | Without Over- Allotment | With Over- Allotment | Without Over- Allotment | With Over- Allotment | ||||||||||||||||||||||||||||||
Numerator | |||||||||||||||||||||||||||||||||||||||
Net tangible book deficit before this offering | (550,339) | (550,339) | (550,339) | (550,339) | (550,339) | (550,339) | (550,339) | (550,339) | (550,339) | (550,339) | |||||||||||||||||||||||||||||
Net proceeds from this offering and the sale of the private placement securities(1) | 154,163,100 | 176,988,600 | 154,163,100 | 176,988,600 | 154,163,100 | 176,988,600 | 154,163,100 | 176,988,600 | 154,163,100 | 176,988,600 | |||||||||||||||||||||||||||||
Plus: Offering costs accrued for or paid in advance, excluded from tangible book value | 575,339 | 575,339 | 575,339 | 575,339 | 575,339 | 575,339 | 575,339 | 575,339 | 575,339 | 575,339 | |||||||||||||||||||||||||||||
Less: Deferred underwriting commission | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Less: overallotment liability | (160,480) | — | (160,480) | — | (160,480) | — | (160,480) | — | (160,480) | — | |||||||||||||||||||||||||||||
Less: Amounts paid for redemptions | — | — | (38,232,713) | (43,967,619) | (76,465,425) | (87,935,239) | (114,698,138) | (131,902,858) | (152,930,850) | (175,870,478) | |||||||||||||||||||||||||||||
154,027,620 | 177,013,600 | 115,794,907 | 133,045,981 | 77,562,195 | 89,078,361 | 39,329,482 | 45,110,742 | 1,096,770 | 1,143,123 | ||||||||||||||||||||||||||||||
Denominator: | |||||||||||||||||||||||||||||||||||||||
Ordinary shares outstanding prior to this offering | 5,833,183 | 5,833,183 | 5,833,183 | 5,833,183 | 5,833,183 | 5,833,183 | 5,833,183 | 5,833,183 | 5,833,183 | 5,833,183 | |||||||||||||||||||||||||||||
Ordinary shares forfeited if over-allotment is not exercised | (760,850) | — | (760,850) | — | (760,850) | — | (760,850) | — | (760,850) | — | |||||||||||||||||||||||||||||
Private placement shares | 506,250 | 506,250 | 506,250 | 506,250 | 506,250 | 506,250 | 506,250 | 506,250 | 506,250 | 506,250 | |||||||||||||||||||||||||||||
Ordinary shares offered | 15,217,000 | 17,499,550 | 15,217,000 | 17,499,550 | 15,217,000 | 17,499,550 | 15,217,000 | 17,499,550 | 15,217,000 | 17,499,550 | |||||||||||||||||||||||||||||
Less: Ordinary shares redeemed | — | — | (3,804,250) | (4,374,888) | (7,608,500) | (8,749,775) | (11,412,750) | (13,124,663) | (15,217,000) | (17,499,550) | |||||||||||||||||||||||||||||
20,792,585 | 23,838,983 | 16,991,333 | 19,464,096 | 13,187,083 | 15,089,208 | 9,382,833 | 10,714,321 | 5,578,583 | 6,339,433 | ||||||||||||||||||||||||||||||
(1) | Expenses applied against gross proceeds include offering expenses of approximately $1,306,900 and underwriting discounts of $750,000. See “Use of Proceeds.” |
December 31, 2024 | ||||||
Actual | As Adjusted | |||||
Balance Sheet Data: | ||||||
Working capital (deficit)(1) | $(550,339) | $1,096,770 | ||||
Total assets(2) | $577,682 | $154,190,443 | ||||
Total liabilities(3) | $552,682 | $160,480 | ||||
Value of ordinary shares subject to possible conversion(4) | $— | $152,930,850 | ||||
Shareholders’ equity(5) | $25,000 | $1,096,770 | ||||
(1) | The “as adjusted” calculation includes $1,232,250 of cash held outside the trust account plus $25,000 of actual shareholder’s equity on December 31, 2024, less the overallotment liability of $160,480. |
(2) | The “as adjusted” calculation equals $152,930,850 cash held in trust from the proceeds of this offering, plus $1,232,250 in cash held outside the trust account plus $25,000 of actual shareholder’s equity at December 31, 2024. |
(3) | The “as adjusted” calculation includes $160,480 related to the fair value of the over-allotment option. |
(4) | The “as adjusted” calculation equals the “as adjusted” total assets, less the “as adjusted” total liabilities, less the “as adjusted” shareholder’s equity. |
(5) | Excludes 15,217,000 public shares which are subject to redemption in connection with our initial business combination. The “as adjusted” calculation equals the “as adjusted” total assets, less the “as adjusted” total liabilities, less the value of Class A ordinary shares that may be redeemed in connection with our initial business combination (initially $10.05 per share). |
• | our being a company with no operating history and no revenues; |
• | our ability to select an appropriate target business or businesses; |
• | our expectations around the performance of a prospective target business or businesses; |
• | our success in retaining or recruiting, or changes required in, our officers, key employees or directors following our initial business combination; |
• | our officers and directors allocating their time to other businesses and potentially having conflicts of interest with our business or in approving our initial business combination; |
• | our potential ability to obtain additional financing to complete our initial business combination; |
• | our pool of prospective target businesses; |
• | the ability of our officers and directors to generate a number of potential business combination opportunities; |
• | our public securities’ potential liquidity and trading; |
• | the lack of a market for our securities; |
• | the use of proceeds not held in the trust account or otherwise available to us; |
• | the trust account not being subject to claims of third parties; |
• | our financial performance following this offering; and |
• | the other risks and uncertainties discussed in “Risk Factors” and elsewhere in this prospectus. |
• | our registration statement/proxy statement filed for our business combination transaction would disclose the possibility that our management team, Advisors, sponsor or any of their respective affiliates may purchase public shares or warrants from public shareholders outside the redemption process, along with the purpose of such purchases; |
• | if our management team, sponsor or any of their respective affiliates were to purchase public shares or warrants from public shareholders, they would do so at a price no higher than the price offered through our redemption process; |
• | our registration statement/proxy statement filed for our business combination transaction would include a representation that any of our securities purchased by our management team, sponsor or any of their respective affiliates would not be voted in favor of approving the business combination transaction; |
• | our management team, Advisors, sponsor or any of their respective affiliates would not possess any redemption rights with respect to our securities or, if they do acquire and possess redemption rights, they would waive such rights; and |
• | we would disclose in a Form 8-K, before our general meeting to approve the business combination transaction, the following material items: |
• | the amount of our securities purchased outside of the redemption offer by our management team, sponsor or any of their respective affiliates, along with the purchase price; |
• | the purpose of the purchases by our management team, Advisors, sponsor or any of their respective affiliates; |
• | the impact, if any, of the purchases by our management team, sponsor or any of their respective affiliates on the likelihood that the business combination transaction will be approved; |
• | the identities of our security holders who sold to our sponsor, directors, executive officers, Advisors or any of their affiliates (if not purchased on the open market) or the nature of our security holders (e.g., 5% security holders) who sold to our management team, sponsor or any of their respective affiliates; and |
• | the number of our securities for which we have received redemption requests pursuant to our redemption offer. |
• | higher costs and difficulties inherent in managing cross-border business operations and complying with different commercial and legal requirements of overseas markets; |
• | rules and regulations regarding currency redemption; |
• | complex corporate withholding taxes on individuals; |
• | laws governing the manner in which future business combinations may be effected; |
• | tariffs and trade barriers; |
• | regulations related to customs and import/export matters; |
• | longer payment cycles and challenges in collecting accounts receivable; |
• | tax issues, including but not limited to tax law changes and variations in tax laws as compared to the United States; |
• | currency fluctuations and exchange controls; |
• | rates of inflation; |
• | cultural and language differences; |
• | employment regulations; |
• | crime, strikes, riots, civil disturbances, terrorist attacks, natural disasters and wars; |
• | deterioration of political relations with the United States; and |
• | government appropriations of assets. |
• | 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 ordinary shares; |
• | using a substantial portion of our cash flow to pay principal and interest on our debt, which will reduce the funds available for dividends on our ordinary shares, 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 disadvantages compared to our competitors who have less debt. |
• | solely dependent upon the performance of a single business, property or asset, or |
• | dependent upon the development or market acceptance of a single or limited number of products, processes or services. |
• | restrictions on the nature of our investments; and |
• | restrictions on the issuance of securities, each of which may make it difficult for us to complete our initial business combination. |
• | registration as an investment company; |
• | adoption of a specific form of corporate structure; and |
• | reporting, record keeping, voting, proxy and disclosure requirements and other rules and regulations. |
• | a limited availability of market quotations for our securities; |
• | reduced liquidity for our securities; |
• | a determination that our Class A ordinary shares are “penny stock” which will require brokers trading in our Class A ordinary shares to adhere to more stringent rules and possibly result in a reduced level of trading activity in the secondary trading market for our securities; |
• | a limited amount of news and analyst coverage; and |
• | a decreased ability to issue additional securities or obtain additional financing in the future. |
• | may significantly dilute the equity interest of investors in this offering; |
• | may subordinate the rights of holders of ordinary shares if preference shares is issued with rights senior to those afforded our ordinary shares; |
• | could cause a change of control if a substantial number of our ordinary shares are issued, which may affect, among other things, our ability to use our net operating loss carry forwards, if any, and could result in the resignation or removal of our present officers and directors; and |
• | may adversely affect prevailing market prices for our units, Class A ordinary shares and/or warrants. |
(i) | we issue additional Class A ordinary shares or equity-linked securities for capital raising purposes in connection with the closing of our initial business combination at a New Issuance Price of less than $9.20 per share; |
(ii) | the aggregate gross proceeds from such issuances represent more than 60% of the total equity proceeds, and interest thereon, available for the funding of our initial business combination on the date of the consummation of our initial business combination (net of redemptions), and |
(iii) | the Market Value is below $9.20 per share, |
• | the history and prospects of companies whose principal business is the acquisition of other companies; |
• | prior offerings of those companies; |
• | our prospects for acquiring an operating business; |
• | our capital structure; |
• | an assessment of our management and their experience in identifying operating companies; |
• | general conditions of the securities markets at the time of this offering; and |
• | other factors as were deemed relevant. |
• | if we do not develop successful new products or improve existing ones, our business will suffer; |
• | we may invest in new lines of business that could fail to attract or retain users or generate revenue; |
• | we will face significant competition and if we are not able to maintain or improve our market share, our business could suffer; |
• | disruption or failure of our networks, systems, platform or technology that frustrate or thwart our users’ ability to access our products and services, may cause our users, advertisers, and partners to cut back on or stop using our products and services altogether, which could seriously harm our business; |
• | mobile malware, viruses, hacking and phishing attacks, spamming, and improper or illegal use of our products could seriously harm our business and reputation; |
• | if we are unable to successfully grow our user base and further monetize our products, our business will suffer; |
• | if we are unable to protect our intellectual property, the value of our brand and other intangible assets may be diminished, and our business may be seriously harmed; |
• | we may be subject to regulatory investigations and proceedings in the future, which could cause us to incur substantial costs or require us to change our business practices in a way that could seriously harm our business; and |
• | components used in our products may fail as a result of a manufacturing, design, or other defect over which we have no control, and render our devices inoperable. |
Gross Proceeds | Without Option to Purchase Additional Units | Option to Purchase Additional Units Exercised in Full | ||||
Gross proceeds from units offered to public(1) | $152,170,000 | $174,995,500 | ||||
Gross proceeds from private placement securities offered in the private placements | $4,050,000 | $4,050,000 | ||||
Total gross proceeds | $156,220,000 | $179,045,500 | ||||
Estimated offering expenses(2) | ||||||
Underwriting commissions(3) | $750,000 | $750,000 | ||||
Legal fees and expenses | $400,000 | $400,000 | ||||
Printing and engraving expenses | $50,000 | $50,000 | ||||
Accounting fees and expenses | $90,000 | $90,000 | ||||
SEC/FINRA expenses | $53,541 | $53,541 | ||||
Nasdaq listing and filing fees | $75,000 | $75,000 | ||||
Miscellaneous expenses(4) | $638,359 | $638,359 | ||||
Total estimated offering expenses (other than underwriting commissions) | $1,306,900 | $1,306,900 | ||||
Proceeds after estimated offering expenses | $154,163,100 | $176,988,600 | ||||
Held in trust account | $152,930,850 | $175,870,478 | ||||
Percent of public offering size | 100.5% | 100.5% | ||||
Not held in trust account | $1,232,250 | $1,232,250 | ||||
Amount | % of Total | |||||
Legal, accounting, due diligence, travel, and other expenses in connection with any business combination | $300,000 | 24.35% | ||||
Legal and accounting fees related to regulatory reporting obligations | 190,000 | 15.42% | ||||
Directors and officers insurance premiums | 250,000 | 20.29% | ||||
Payment for office space, utilities and secretarial and administrative support(4) | 315,000 | 25.56% | ||||
Working capital to cover miscellaneous expenses (including continued listing fees)(3) | 177,250 | 14.38% | ||||
Total | $1,232,250 | 100% | ||||
(1) | Includes amounts payable to public shareholders who properly redeem their shares in connection with our successful completion of our initial business combination. |
(2) | In the event that our offering expenses are more than as set for in this table, we may fund such excess from the funds not to be held in the trust account. In such case, the amount of funds we intend to be held outside the trust account would decrease by a corresponding amount. Conversely, in the event that the offering expenses are less than as set for in this table, the amount of funds we intend to be held outside the trust account would increase by a corresponding amount. |
(3) | These expenses are estimates only. Our actual expenditures for some or all of these items may differ from the estimates set forth herein. For example, we may incur greater legal and accounting expenses than our current estimates in connection with negotiating and structuring our initial business combination based upon the level of complexity of such business combination. In the event we identify a business combination target in a specific industry subject to specific regulations, we may incur additional expenses associated with legal due diligence and the engagement of special legal counsel. In addition, our staffing needs may vary and as a result, we may engage a number of consultants to assist with legal and financial due diligence. We do not anticipate any change in our intended use of proceeds, other than fluctuations among the current categories of allocated expenses, which fluctuations, to the extent they exceed current estimates for any specific category of expenses, would not be available for our expenses. The proceeds held in the trust account will be (i) invested only in U.S. government treasury obligations with a maturity of 185 days or less or in money market funds meeting certain conditions under Rule 2a-7 under the Investment Company Act, which invest only in direct U.S. government treasury obligations, and/or (ii) deposited in an interest bearing demand deposit account at a U.S. - chartered commercial bank with consolidated assets of $100 billion or more. We estimate the interest earned on the trust account will be approximately $8,028,869.00 per year, assuming an interest rate of 5.25% per year; however, we can provide no assurances regarding this amount. Additionally, when we determine to hold the funds in the trust account as cash or in demand deposit accounts, the amount of interest we may receive would likely be less than this amount. Includes organizational and administrative expenses and may include amounts related to above-listed expenses in the event actual amounts exceed estimates. |
(4) | Includes organizational and administrative expenses and may include amounts related to above-listed expenses in the event actual amounts exceed estimates. |
As of December 31, 2024 | |||||||||||||||||||||||||||
Offering Price of $10.00 per Unit | 25% of Maximum Redemptions | 50% of Maximum Redemptions | 75% of Maximum Redemptions | Maximum Redemptions | |||||||||||||||||||||||
NTBV | Difference between NTBV and Offering Price | NTBV | Difference between NTBV and Offering Price | NTBV | Difference between NTBV and Offering Price | NTBV | Difference between NTBV and Offering Price | NTBV | Difference between NTBV and Offering Price | ||||||||||||||||||
Assuming Full Exercise of Over-Allotment Option | |||||||||||||||||||||||||||
7.43 | 2.57 | 6.84 | 3.16 | 5.90 | 4.10 | 4.21 | 5.79 | 0.18 | 9.82 | ||||||||||||||||||
Assuming No Exercise of Over-Allotment Option | |||||||||||||||||||||||||||
7.41 | 2.59 | 6.81 | 3.19 | 5.88 | 4.12 | 4.19 | 5.81 | 0.20 | 9.80 | ||||||||||||||||||
No Redemptions | 25% | 50% | 75% | 100% | ||||||||||||||||||||||||||
Without Over- Allotment | With Over- Allotment | Without Over- Allotment | With Over- Allotment | Without Over- Allotment | With Over- Allotment | Without Over- Allotment | With Over- Allotment | Without Over- Allotment | With Over- Allotment | |||||||||||||||||||||
Numerator | ||||||||||||||||||||||||||||||
Net tangible book deficit before this offering | (550,339) | (550,339) | (550,339) | (550,339) | (550,339) | (550,339) | (550,339) | (550,339) | (550,339) | (550,339) | ||||||||||||||||||||
Net proceeds from this offering and the sale of the private placement securities(1) | 154,163,100 | 176,988,600 | 154,163,100 | 176,988,600 | 154,163,100 | 176,988,600 | 154,163,100 | 176,988,600 | 154,163,100 | 176,988,600 | ||||||||||||||||||||
Plus: Offering costs accrued for or paid in advance, excluded from tangible book value | 575,339 | 575,339 | 575,339 | 575,339 | 575,339 | 575,339 | 575,339 | 575,339 | 575,339 | 575,339 | ||||||||||||||||||||
Less: Deferred underwriting commission | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Less: overallotment liability | (160,480) | — | (160,480) | — | (160,480) | — | (160,480) | — | (160,480) | — | ||||||||||||||||||||
Less: Amounts paid for redemptions | — | — | (38,232,713) | (43,967,619) | (76,465,425) | (87,935,239) | (114,698,138) | (131,902,858) | (152,930,850) | (175,870,478) | ||||||||||||||||||||
154,027,620 | 177,013,600 | 115,794,907 | 133,045,981 | 77,562,195 | 89,078,361 | 39,329,482 | 45,110,742 | 1,096,770 | 1,143,123 | |||||||||||||||||||||
Denominator: | ||||||||||||||||||||||||||||||
Ordinary shares outstanding prior to this offering | 5,833,183 | 5,833,183 | 5,833,183 | 5,833,183 | 5,833,183 | 5,833,183 | 5,833,183 | 5,833,183 | 5,833,183 | 5,833,183 | ||||||||||||||||||||
Ordinary shares forfeited if over-allotment is not exercised | (760,850) | — | (760,850) | — | (760,850) | — | (760,850) | — | (760,850) | — | ||||||||||||||||||||
Private placement shares | 506,250 | 506,250 | 506,250 | 506,250 | 506,250 | 506,250 | 506,250 | 506,250 | 506,250 | 506,250 | ||||||||||||||||||||
Ordinary shares offered | 15,217,000 | 17,499,550 | 15,217,000 | 17,499,550 | 15,217,000 | 17,499,550 | 15,217,000 | 17,499,550 | 15,217,000 | 17,499,550 | ||||||||||||||||||||
Less: Ordinary shares redeemed | — | — | (3,804,250) | (4,374,888) | (7,608,500) | (8,749,775) | (11,412,750) | (13,124,663) | (15,217,000) | (17,499,550) | ||||||||||||||||||||
20,795,583 | 23,838,983 | 16,991,333 | 19,464,096 | 13,187,083 | 15,089,208 | 9,382,833 | 10,714,321 | 5,578,583 | 6,339,433 | |||||||||||||||||||||
(1) | Expenses applied against gross proceeds include offering expenses of approximately $1,306,900 and underwriting discounts of $750,000. See “Use of Proceeds.” |
December 31, 2024 | ||||||
Actual | As Adjusted(1) | |||||
Note payable to related party(1) | $— | $— | ||||
Over-allotment liability | — | 160,480 | ||||
Class A ordinary shares subject to possible redemption; 0 and 15,217,000 shares, actual and as adjusted, respectively(2) | — | 152,930,850 | ||||
Preference shares, $0.0001 par value, 1,000,000 shares authorized; none issued and outstanding, actual and as adjusted | — | — | ||||
Class A ordinary shares, $0.0001 par value, 200,000,000 shares authorized, none and 506,250 issued and outstanding (excluding 0 and 15,217,000 shares subject to possible redemption), actual and as adjusted, respectively | — | 50 | ||||
Class B ordinary shares, $0.0001 par value, 20,000,000 shares authorized; 5,833,183 and 5,072,333 shares issued and outstanding, actual and as adjusted(3)(5) | 583 | 507 | ||||
Additional paid-in capital(4) | 24,417 | 1,096,213 | ||||
Accumulated deficit | — | — | ||||
Total shareholders’ equity | 25,000 | 1,096,770 | ||||
Total capitalization | $25,000 | $154,188,100 | ||||
(1) | The “as adjusted” information gives effect to the sale of the private placement securities. |
(2) | In connection with seeking the shareholder approval of our initial business combination, we will provide our public shareholders with the opportunity to redeem their public shares, regardless of whether they abstain, vote for, or vote against, our initial business combination, for cash equal to their pro rata share of the aggregate amount then on deposit in the trust account as of two business days prior to the consummation of the initial business combination, including interest, subject to any limitations (including, but not limited to, cash requirements) created by the terms of the proposed business combination. |
(3) | Actual share amount is prior to any forfeiture of founder shares by our sponsor and the “as adjusted” share amount assumes no exercise of the underwriters’ option to purchase additional units and the forfeiture of 760,850 founder shares by our sponsor. |
(4) | The “as adjusted” additional paid-in capital calculation is equal to the “as adjusted” total shareholders’ equity of $1,096,770, less Class A ordinary shares (par value) of $0, less Class B ordinary shares (par value) of $507 less the accumulated deficit of $0. |
(5) | On March 25, 2025, the Sponsor returned to the Company, at no cost, an aggregate of 1,354,317 founder shares, which the Company cancelled. Shares and associated accounts have been retroactively restated to reflect the surrender of 1,354,317 Class B ordinary shares to the Company for no consideration on March 25, 2025. |
• | may significantly dilute the equity interest of investors in this offering, which dilution would increase if the anti-dilution provisions in the Class B ordinary shares resulted in the issuance of Class A ordinary shares on a greater than one-to-one basis upon conversion of the Class B ordinary shares; |
• | may subordinate the rights of holders of ordinary shares if preference shares are issued with rights senior to those afforded our ordinary shares; |
• | could cause a change of control if a substantial number of ordinary shares are issued, which may affect, among other things, our ability to use our net operating loss carry forwards, if any, and could result in the resignation or removal of our present officers and directors; |
• | may have the effect of delaying or preventing a change of control of us by diluting the equity ownership or voting rights of a person seeking to obtain control of us; and |
• | may adversely affect prevailing market prices for our Class A ordinary shares and/or warrants. |
• | default and foreclosure on our assets if our operating revenues after an initial business combination are insufficient to repay our debt obligations; |
• | acceleration of our obligations to repay the indebtedness even if we make all principal and interest payments when due if we breach certain covenants that require the maintenance of certain financial ratios or reserves without a waiver or renegotiation of that covenant; |
• | our immediate payment of all principal and accrued interest, if any, if the debt is payable on demand; |
• | our inability to obtain necessary additional financing if the debt contains covenants restricting our ability to obtain such financing while the debt is outstanding; |
• | our inability to pay dividends on our ordinary shares; |
• | using a substantial portion of our cash flow to pay principal and interest on our debt, which will reduce the funds available for dividends on our ordinary shares, expenses, capital expenditures, acquisitions and other general corporate purposes; |
• | limitations on our flexibility in planning for and reacting to changes in our business and in the industry in which we operate; |
• | increased vulnerability to adverse changes in general economic, industry and competitive conditions and adverse changes in government regulation; and |
• | limitations on our ability to borrow additional amounts for expenses, capital expenditures, acquisitions, debt service requirements, execution of our strategy and other purposes and other disadvantages compared to our competitors who have less debt. |
• | staffing for financial, accounting and external reporting areas, including segregation of duties; |
• | reconciliation of accounts; |
• | proper recording of expenses and liabilities in the period to which they relate; |
• | evidence of internal review and approval of accounting transactions; |
• | documentation of processes, assumptions and conclusions underlying significant estimates; and |
• | documentation of accounting policies and procedures. |
• | Bite Acquisition Corp. (“BITE”) completed its initial public offering in February 2021 and consummated its initial business combination in June 2024 with Above Food Corp (“ABVE”), approximately 40 months after its initial public offering. Approximately 3.8% of BITE’s public shares were redeemed in connection with two extensions to consummate an initial business combination and approximately 29.1% of BITE’s public shares were redeemed in connection with the consummation of its initial business combination with ABVE. As of April 11, 2025, ABVE’s stock price was $0.49. |
• | Digital World Acquisition Corp. (“DWAC”) completed its initial public offering in September 2021 and consummated its initial business combination in March 2024 with Trump Media & Technology Group Corp (“TMTG”), approximately 31 months after its initial public offering. Approximately 0.1% of DWAC’s public shares were redeemed during the seven three-month extensions, and approximately 0.02% of DWAC’s public shares were redeemed in connection with the consummation of its initial business combination with TMTG. As of April 11, 2025, TMTG’s stock price was $18.89. |
• | In 2021, members of our management team founded Agrinam Acquisition Corporation (“Agrinam”), a blank check company, listed on the Toronto Stock Exchange (TSX), formed for substantially similar purposes as our company. Additionally, members of our management team serve as the management team for Agrinam. Agrinam completed its initial public offering in 2022, raising total proceeds of $138,000,000 through the sale of 1,800,000 Restricted Class A Voting Units. While Agrinam had previously identified a target for its business combination, it terminated the business combination agreement on September 19, 2024 and has not yet identified a new target. On December 12, 2024, at the fourth special meeting of shareholders, shareholders of Agrinam approved the extension of the date by which the company must consummate a qualifying acquisition from December 15, 2024 to June 15, 2025. The company may be subject to delisting from the Toronto Stock Exchange if it fails to consummate an initial business combination by then without shareholders’ approval of an extension of the combination period. As of January 6, 2025, an aggregate of 10,500 Class A Restricted Voting Shares of Agrinam were redeemed, approximately $1.59 million was held in the escrow account and 1,892 Class A Restricted Voting Shares were issued and outstanding. On March 14, 2025, Agrinam and Blue Energy and Electricity, S.A. de C.V. (“Blue Energy”), a leading independent energy supplier, specializing in the provision of renewable electricity, solar panels and battery storage in Mexico, announced they have entered into a definitive business combination agreement. Under the terms of the agreement, Blue Energy will merge with Agrinam, through a share exchange to become a publicly traded company listed on the TSX, pending regulatory approval. As a result, there is a material conflict of interest between Agrinam and our company as we and Agrinam are both engaged in the business of engaging in business combinations. We expect that Agrinam will generally have priority over us with respect to acquisition opportunities until it completes its initial business combination, enters into a contractual agreement that would restrict its ability to engage in material discussions regarding a potential initial business combination, or ceases operations and liquidates its trust account. |
Entity / Individual | Amount of Compensation to be Received or Securities Issued or to be Issued | Paid or to be Paid | ||||
$15,000 per month, commencing on the first date on which our securities are listed on Nasdaq | Office space, administrative and shared personnel support services | |||||
Globa Terra Management LLC | 5,833,183(1)(5) Class B ordinary shares | $25,000 | ||||
Entity / Individual | Amount of Compensation to be Received or Securities Issued or to be Issued | Paid or to be Paid | ||||
468,750 private placement units and 937,500 restricted Class A shares (whether or not the over-allotment option is exercised)(2)(3) | $3,750,000 private placement units (whether or not the over-allotment option is exercised) | |||||
Reimbursement for any out-of-pocket expenses related to identifying, investigating and completing an initial business combination | Expenses incurred in connection with identifying, investigating and completing an initial business combination | |||||
Up to $2,500,000 in working capital loans, which loans may be convertible into private placement units of the post-business combination entity at the price of $10.00 per units(4) | Working capital loans to finance transaction costs in connection with an initial business combination | |||||
(1) | The Class B ordinary shares and the Class A ordinary shares issuable in connection with the conversion of the Class B ordinary shares may result in material dilution to our public shareholders due to the nominal price of $0.0043 per share at which our sponsor purchased the Class B ordinary shares and/or the anti-dilution rights of our Class B ordinary shares that may result in an issuance of Class A ordinary shares on a greater than one-to-one basis upon conversion. Our sponsor, directors and officers and their affiliates may receive additional compensation and/or may be issued additional securities in connection with an initial business combination, including securities that may result in material dilution to public shareholders. See “Risk Factors — Risks Relating to our Sponsor, Advisors and Management Team — The nominal purchase price paid by our sponsor for the founder shares and the vesting of the restricted Class A shares may significantly dilute the implied value of your public shares in the event we consummate an initial business combination, and our sponsor is likely to make a substantial profit on its investment in us in the event we consummate an initial business combination, even if the business combination causes the trading price of our ordinary shares to decline materially” on page 81, “— Risks Relating to our Securities — We may issue additional ordinary shares or preference shares to complete our initial business combination or under an employee incentive plan after completion of our initial business combination. We may also issue Class A ordinary shares upon the conversion of the Class B ordinary shares at a ratio greater than one-to-one at the time of our initial business combination as a result of the anti-dilution provisions contained in our amended and restated memorandum and articles of association. Any such issuances would dilute the interest of our shareholders and likely present other risks” on page 92, “— Our initial shareholders, either directly or indirectly, paid an aggregate of $25,000, or approximately $0.0043 per founder share, and, accordingly, you will experience immediate and substantial dilution from the purchase of our Class B ordinary shares” on page 93 and “— Unlike many other similarly structured blank check companies, our initial shareholders will receive additional Class A ordinary shares if we issue shares to consummate an initial business combination” on page 94. |
(2) | The sponsor non-managing members have expressed an interest to purchase sponsor non-managing membership interests reflecting interests in an aggregate of 300,000 private placement securities to be purchased by our sponsor, at a price of $10.00 per private placement security ($3,000,000 in the aggregate) in private placements that will close simultaneously with the closing of this offering. |
(3) | Subject to each sponsor non-managing member purchasing the non-managing membership interests in our sponsor reflecting interests in an aggregate of 300,000 private placement securities. |
(4) | After the completion of this offering, our board of directors may approve additional working capital loans for the purpose of funding working capital, which loans may be converted into our private placement units, shares, rights, or warrants. The Class A ordinary shares issuable in connection with the exercise of the private placement warrants and private placement rights, as well as any Class A ordinary shares issued in connection with conversion of working capital loans into additional private placement units (as described in this prospectus), may result in material dilution to our public shareholders. See “Description of Securities — Warrants — Private placement units” on page 181; see also “Risk Factors — Risks Relating to our Sponsor, Advisors and Management Team — The nominal purchase price paid by our sponsor for the founder shares and the vesting of the restricted Class A shares may significantly dilute the implied value of your public shares in the event we consummate an initial business combination, and our sponsor is likely to make a substantial profit on its investment in us in the event we consummate an initial business combination, even if the business combination causes the trading price of our ordinary shares to decline materially” on page 81, “— Risks Relating to our Securities — We may issue additional ordinary shares or preference shares to complete our initial business combination or under an employee incentive plan after completion of our initial business combination. We may also issue Class A ordinary shares upon the conversion of the Class B ordinary shares at a ratio greater than one-to-one at the time of our initial business combination as a result of the anti-dilution provisions contained in our amended and restated memorandum and articles of association. Any such issuances would dilute the interest of our shareholders and likely present other risks” on page 92, “— Our initial shareholders, either directly or indirectly, paid an aggregate of $25,000, or approximately $0.0043 per founder share, and, accordingly, you will experience immediate and substantial dilution from the purchase of our Class B ordinary shares” on page 93 and “— Unlike many other similarly structured blank check companies, our initial shareholders will receive additional Class A ordinary shares if we issue shares to consummate an initial business combination” on page 94. |
(5) | If we increase or decrease the size of this offering we will effect a capitalization or share repurchase or redemption or other appropriate mechanism, as applicable, with respect to our Class B ordinary shares immediately prior to the consummation of the offering in such amount as to maintain the ownership of our initial shareholders at 25% of the issued and outstanding ordinary shares upon the consummation of this offering. Our public shareholders may incur material dilution due to such anti-dilution adjustments that result in the issuance of Class A ordinary shares on a greater than one-to-one basis upon conversion. |
Subject Securities | Expiration Date | Persons Subject to Restrictions | Exceptions to Transfer Restrictions | ||||||
Founder Shares | Earlier of one year after completion of our initial business combination; or if the closing price of our ordinary shares equals or exceeds $12.00 per Class A ordinary share (as adjusted for share sub-divisions, share dividends, reorganizations, recapitalizations and other similar transactions) for any 20 trading days within any 30-trading day period commencing any time 150 days after completion of our initial business combination | Globa Terra Management LLC, Agustin Tristan Aldave, Katherine Chiles, Alejandro F. Garza, Edward Joseph Preble, Jesus Demetrio Tueme, Kelly Burke, Jeff Smith and the Private Placement Investor, Meriden Peak, (subject to Globa Terra Management LLC transferring certain founder shares to Meridien Peak, as further described in this prospectus) | Transfers permitted (i) to any officer, director, or employee of the Company, including to a family member or affiliate of such officer, director, or employee; (ii) by private sales or transfers, in each case, made in connection with the consummation of our initial business combination at prices no greater than the price at which the securities were originally purchased; (iii) in the event of our liquidation prior to the completion of our initial business combination; (iv) by virtue of the laws of the Cayman Islands or our sponsor’s limited liability company agreement upon dissolution of our sponsor; and (v) in the event of our completion of a liquidation, merger, share exchange, reorganization or other similar transaction which results in all of our public shareholders having the right to exchange their Class A ordinary shares for cash, securities or other property subsequent to the completion of our initial business combination | ||||||
Private Placement Units | 180 days after the completion of our initial business combination | Globa Terra Management LLC and the Private Placement Investor | Same as above | ||||||
Restricted Class A Shares | 90 days after completion of our initial business combination | Same as above | Same as above | ||||||
Any units, warrants, ordinary shares or any other securities convertible into, or exercisable or exchangeable for, any units, ordinary shares, founder shares or warrants | 180 days | Same as above Globa Terra Management LLC | The representative in its sole discretion may release any of the securities subject to these lock-up agreements at any time without notice, other than in the case of the officers and directors, which shall be with notice. Our sponsor, officers and directors are also subject to separate transfer restrictions on their founder shares and private placement units pursuant to the letter agreement described in the immediately preceding paragraphs. | ||||||
• | Depth of Team and Access to Resources: We have a dedicated management team with a track record of executing on transactions, and we believe we have the resources to source and evaluate a larger number of potential transactions relative to other SPACs. |
• | Sourcing Channels and Leading Industry Relationships. We believe our capabilities, reputation and deep industry relationships will provide us with a differentiated pipeline of acquisition opportunities that would be difficult for other participants in the market to replicate. |
• | Prior SPAC Experience: Certain members of our management team have significant SPAC experience, as founders, investors or advisors in SPAC transactions, including serving as executive officers of Bite Acquisition Corp, Digital World Acquisition Corp. and Agrinam. We believe their experience in SPAC transactions provide us with a distinctive advantage with respect to understanding the process of sourcing, evaluating and executing an initial business combination, as well as positioning us as an attractive partner with prospective target companies compared to first-time SPACs with no such prior experience. |
• | Execution and Structuring Capability. We believe our management team’s expertise and reputation will allow us to source and complete transactions possessing structural attributes that create an attractive investment thesis. These types of transactions are typically complex and require creativity, industry knowledge and expertise, rigorous due diligence, and extensive negotiations and documentation. We believe that by focusing our investment activities on these types of transactions, we can generate investment opportunities that have attractive risk/reward profiles based on their valuations and structural characteristics. |
• | Public Company Experience. Certain members of our management team have extensive experience as public company executives and/or board members. This experience will serve as a key competitive advantage in selecting companies that will benefit from going public, positioning us as an attractive partner to management teams of potential target companies, and help to create long-term value post-closing of the initial business combination. |
• | Business Fundamentals: We will target companies with strong fundamentals that align with our growth strategy in the agribusiness and water sectors. Ideal targets will have an enterprise value exceeding twice the size of ours and display year-over-year revenue growth, with EBITDA and cash-flow positivity. These companies should operate in multiple countries, enabling expansion and operational synergies through vertical integration. We will also seek founders who are willing to retain a meaningful stake in the public company, ensuring alignment with long-term value creation. Additional factors include attractive valuations, a large total addressable market, and a competitive industry position. |
• | Public Company Ready: We will seek to acquire a company that is well-positioned to be a public company in terms of scale and size, and a company that public equity market investors will understand and value. While we believe our public company experience will be a significant asset as a transaction partner to private companies, we intend to avoid companies that have significant deficiencies in financial reporting or general public company readiness. |
• | Would Benefit Distinctly from our Capabilities: We will seek to acquire a business where we can tangibly improve the operations and create long term value for our shareholders. In particular, we believe our experience in operating and changing public companies and/or serving on public company boards would be a value-add to the management teams and boards of potential target companies. We expect our strategy to draw heavily from the private equity world, focusing on creating long-term value through a combination of disciplined investment practices, operational improvements, and strategic growth initiatives. Leveraging our team's deep experience in private equity, we emphasize identifying high-quality businesses with strong fundamentals, scalability, and alignment with our vertical integration strategy. We aim to employ a rigorous due diligence process to evaluate targets, ensuring that they meet key criteria such as robust financial performance, competitive positioning, and alignment with certain principles that we may pre-define. Once a business combination is completed, we intend to apply private equity-style operational enhancements, fostering revenue growth and operational efficiency. By leveraging our network of private equity professionals, institutional investors, and strategic partners, we aim to bring transformative value to the target businesses, aligning our shareholders' interests with those of management teams to drive sustainable growth and superior returns. This approach reflects our commitment to unlocking value beyond the transaction, ensuring that we position our targets for long-term success in the competitive agribusiness and water sectors. We will look for targets where the majority of the production comes from Latin America where we can achieve higher yields due to lower labor and land costs and where the distribution occurs in the United States and/or Canada, or companies in the primary sector which have the potential to merge with companies in the value-added sector and thereby create a vertically integrated company. Our team will also look for companies involved in water treatment, desalination, pipelines, and water solutions looking to address the water crisis. |
• | Innovators within an Existing Market. We will seek a company which embraces technology and the innovation of its products and/or processes within an existing market, and burden of developing a new and yet to be proven marketplace or form of technology. |
• | Maintains Strong Environmental, Social and Corporate Governance Principles. We intend to seek a target that maintains strong environmental, social, and corporate governance standards which make use of responsible and ethical supply chains and prioritize human rights and sustainability. We believe ESG integration is fundamental to operating a productive, profitable and sustainable Agribusiness. To that end, we intend to target businesses following a business model which implements the principles of responsible investment. |
• | Has a Dedicated and Proven Management Team: We will seek to acquire a business with a professional management team whose interests are aligned with those of our investors. Where necessary, we may also look to complement and enhance the capabilities of the target business’s management team by recruiting additional talent through our network of contacts. |
• | Targets where the majority of primary production will come from Latin America,where businesses may be able to achieve higher yields due to lower labor and land costs, and where the value-added distribution occurs in the United States and/or Canada, driving potentially higher margins. This strategy seeks to support reliability of supply and is also designed to enable higher margin capture with an integrated value chain from the farm to the end retail market; or |
• | Companies in the primary sector which have the potential to merge with businesses in the value-added sector to create a vertically integrated company. |
• | Implementation of robotics, AI and machine learning platforms to increase productivity, efficiency and reduce labor costs. |
• | Farm digitization in connection with the rise of ESG adoption. |
• | Fintech transformation in agriculture, comparable to the Fintech impact on the student loan and mortgage markets. |
• | Increasing adoption of alternative and cellular protein providing consumers around the world with safe, sustainable food. |
• | Adoption of food waste solutions which we believe will be recognized as both a good business practice and an essential tool to help mitigate hunger around the world. |
• | Adoption of food as a central effort to prevent chronic disease and improve health outcomes. |
• | Transformation of food brands and grocers towards “personalize or perish.” |
• | C- Grade: U.S. drinking water infrastructure received a “C-” grade on the American Society of Civil Engineers 2021 Infrastructure Report Card and U.S. wastewater infrastructure received a “D+” grade. |
• | 16% water loss: In the United States, due to aging infrastructure, it is estimated that the U.S. loses 16% of its treated water before it even reaches the customer, representing more than seven billion gallons of treated water lost each day. |
• | 700-850 main breaks a day, costing $3 billion per year: Studies suggest that between 700 and 850 water main breaks occur each day in North America, causing more than $3 billion in repair costs annually. |
• | $600 billion in investment needed: The U.S. EPA projects $472.6 billion is needed to maintain drinking water infrastructure between 2015 and 2035. Combined with wastewater needs, the EPA projects more than $600 billion is needed over 20 years for necessary infrastructure improvements. |
• | $3.9 billion invested each year by 10 largest private water companies: The ten largest water companies in the U.S. invested more than $3.9 billion in 2021 to improve community tap water systems. These are dollars coming from the private sector and not out of a municipal budget. |
• | About two billion people worldwide do not have access to safe drinking water today, and roughly half of the world’s population is experiencing severe water scarcity for at least part of the year. These numbers are expected to increase, exacerbated by climate change and population growth. |
• | Only 0.5 per cent of water on Earth is useable and available freshwater – and climate change is dangerously affecting that supply. Over the past twenty years, terrestrial water storage – including soil moisture, snow and ice – has dropped at a rate of 1 cm per year, with major ramifications for water security. |
• | Water supplies stored in glaciers and snow cover are projected to further decline over the course of the century, thus reducing water availability during warm and dry periods in regions supplied by melt water from major mountain ranges, where more than one-sixth of the world’s population currently live. |
• | Sea-level rise is projected to extend salinization of groundwater, decreasing freshwater availability for humans and ecosystems in coastal areas. |
• | Limiting global warming to 1.5°C compared to 2°C would approximately halve the proportion of the world population expected to suffer water scarcity, although there is considerable variability between regions. |
• | Water quality is also affected by climate change, as higher water temperatures and more frequent floods and droughts are projected to exacerbate many forms of water pollution – from sediments to pathogens and pesticides. |
• | Climate change, population growth and increasing water scarcity will put pressure on food supply as most of the freshwater used, about 70 percent on average, is used for agriculture (it takes between 2000 and 5000 liters of water to produce a person’s daily food). |
• | retailers are demanding that their suppliers adopt ESG best practices which are aligned with their corporate sustainability strategies; |
• | end-customers are demanding environmental best practices from the manufacturers and distributors of the products they purchase; |
• | ESG best practices, once successfully integrated into the operations of companies, can translate into cost efficiencies and improved productivity metrics; and |
• | there is a trend of a fast growing sustainable finance market which prioritizes the opportunity to link sustainability to better cost of capital. |
• | 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. |
• | We issue Class A ordinary shares that will be equal to or in excess of 20% of the number of our Class A ordinary shares then-outstanding; |
• | Any of our directors, officers or substantial security holder (as defined by Nasdaq rules) has a 5% or greater interest, directly or indirectly, in the target business or assets to be acquired or otherwise and the present or potential issuance of ordinary shares could result in an increase in issued and outstanding ordinary shares or voting power of 1% or more (or 5% or more if the related party involved is classified as such solely because such person is a substantial security holder); or |
• | The issuance or potential issuance of ordinary shares will result in our undergoing a change of control. |
• | the timing of the transaction, including in the event we determine shareholder approval would require additional time and there is either not enough time to seek shareholder approval or doing so would place the company at a disadvantage in the transaction or result in other additional burdens on the company; |
• | the expected cost of holding a shareholder vote; |
• | the risk that the shareholders would fail to approve the proposed business combination; |
• | other time and budget constraints of the company; and |
• | additional legal complexities of a proposed business combination that would be time-consuming and burdensome to present to shareholders. |
• | our registration statement/proxy statement filed for our business combination transaction would disclose the possibility that our management team, Advisors, sponsor or any of their respective affiliates may purchase shares, rights or warrants from public shareholders outside the redemption process, along with the purpose of such purchases; |
• | if our management team, Advisors, sponsor or any of their respective affiliates were to purchase public shares or warrants from public shareholders, they would do so at a price no higher than the price offered through our redemption process; |
• | our registration statement/proxy statement filed for our business combination transaction would include a representation that any of our securities purchased by our management team, Advisors, sponsor or any of their respective affiliates would not be voted in favor of approving the business combination transaction; |
• | our management team, Advisors, sponsor or any of their respective affiliates would not possess any redemption rights with respect to our securities or, if they do acquire and possess redemption rights, they would waive such rights; and |
• | we would disclose in a Form 8-K, before our general meeting to approve the business combination transaction, the following material items: |
• | the amount of our securities purchased outside of the redemption offer by our management team, Advisors, sponsor or any of their respective affiliates, along with the purchase price; |
• | the purpose of the purchases by our management team, Advisors, sponsor or any of their respective affiliates; |
• | the impact, if any, of the purchases by our management team, Advisors, sponsor or any of their respective affiliates on the likelihood that the business combination transaction will be approved; |
• | the identities of our security holders who sold to our management team, Advisors, sponsor or any of their respective affiliates (if not purchased on the open market) or the nature of our security holders (e.g., 5% security holders) who sold to our management team, sponsor or any of their respective affiliates; and |
• | the number of our securities for which we have received redemption requests pursuant to our redemption offer. |
• | 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. |
• | 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. |
• | prior to the consummation of our initial business combination, we shall either: (1) seek shareholder approval of our initial business combination at a general meeting called for such purpose at which shareholders may seek to redeem their shares, regardless of whether they vote for or against, or abstain from voting on, the proposed business combination, into their pro rata share of the aggregate amount on deposit in the trust account as of two business days prior to the consummation of our initial business combination, including interest; or (2) provide our public shareholders with the opportunity to tender their |
• | we will consummate our initial business combination only if we have net tangible assets of at least $5,000,001 upon such consummation and, solely if we seek shareholder approval, a majority of the outstanding ordinary shares voted are voted in favor of the business combination at a duly held general meeting; |
• | if our initial business combination is not consummated within the completion window, then our existence will terminate and we will distribute all amounts in the trust account; and |
• | prior to our initial business combination, we may not issue additional ordinary shares that would entitle the holders thereof to (1) receive funds from the trust account or (2) vote on any initial business combination. |
Redemptions in Connection with our Initial Business Combination | Other Permitted Purchases of Public Shares by our Affiliates | Redemptions if we fail to Complete an Initial Business Combination | |||||||
Calculation of redemption price | Redemptions at the time of our initial business combination may be made pursuant to a tender offer or in connection with a shareholder vote. The redemption price will be the same whether we conduct redemptions pursuant to a tender offer or in connection with a shareholder vote. In either case, our public shareholders may redeem their public shares for 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 (which is initially anticipated to be $10.05 per share), including interest, divided by the number of then outstanding public shares, subject to the limitation that no | If we seek shareholder approval of our initial business combination, our management, Advisors, the Private Placement Investor, sponsor or any of their respective affiliates may purchase public shares and public warrants in privately negotiated transactions or in the open market either prior to or following completion of our initial business combination. If our management, sponsor or any of their respective affiliates were to purchase public shares or warrants from public shareholders they would do so at a price no higher than the price offered through our redemption process. If they engage in such transactions, they will be restricted from making any such purchases when | If we are unable to complete our initial business combination within the completion window, we will redeem all public shares at a per share price, payable in cash, equal to the aggregate amount then on deposit in the trust account, including interest (less taxes payable and up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding public shares. | ||||||
Redemptions in Connection with our Initial Business Combination | Other Permitted Purchases of Public Shares by our Affiliates | Redemptions if we fail to Complete an Initial Business Combination | |||||||
redemptions will take place if all of the redemptions would cause our net tangible assets to be less than $5,000,001 and any limitations (including but not limited to cash requirements) agreed to in connection with the negotiation of terms of a proposed business combination. | 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 be required to comply with such rules. | ||||||||
Impact to remaining shareholders | The redemptions in connection with our initial business combination will reduce the book value per share for our remaining shareholders. | If the permitted purchases described above are made, there would be no impact to our remaining shareholders because the purchase price would not be paid by us. In the event our management, sponsor, or any of their respective affiliates were to purchase public shares, public warrants or public rights from public shareholders, such purchases would be structured in compliance with the requirements of Rule 14e-5 under the Exchange Act including, in pertinent part, through disclosing the following in our registration statement/ proxy statement filed for our business combination transaction: the possibility that our management team, Advisors, sponsor or any of their respective affiliates may purchase public shares or | The redemption of our public shares if we fail to complete our initial business combination will reduce the book value per share for the shares held by our initial shareholders, who will be our only remaining shareholders after such redemptions. | ||||||
Redemptions in Connection with our Initial Business Combination | Other Permitted Purchases of Public Shares by our Affiliates | Redemptions if we fail to Complete an Initial Business Combination | |||||||
warrants from public shareholders outside the redemption process, along with the purpose of such purchases; a representation that any of our securities purchased by our sponsor, directors, executive officers, advisors or any of their affiliates would not be voted in favor of approving the business combination transaction; and our management team, Advisors, sponsor or any of their respective affiliates would not possess any redemption rights with respect to our securities or, if they do acquire and possess redemption rights, they would waive such rights. | |||||||||
Additionally, we would disclose in a Form 8-K, before our general meeting to approve the business combination transaction, the following material items: the amount of our securities purchased outside of the redemption offer by our management team, sponsor or any of their respective affiliates, along with the purchase price; the purpose of the purchases by our management team, Advisors, sponsor or any of their respective affiliates; the impact, if any, of the purchases by our management team, sponsor or any of their respective affiliates on the likelihood that the business combination transaction will be approved; the identities of our security holders who sold to our management team, Advisors, sponsor or any of their respective | |||||||||
Redemptions in Connection with our Initial Business Combination | Other Permitted Purchases of Public Shares by our Affiliates | Redemptions if we fail to Complete an Initial Business Combination | |||||||
affiliates (if not purchased on the open market) or the nature of our security holders (e.g., 5% security holders) who sold to our management team, sponsor or any of their respective affiliates; and the number of our securities for which the we have received redemption requests pursuant to our redemption offer. | |||||||||
Terms of Our Offering | Terms Under a Rule 419 Offering | |||||
Escrow of offering proceeds | $152,930,850 of the net proceeds of this offering and the sale of the private placement securities will be deposited into a trust account located in the United States with Odyssey Trust Company acting as trustee. | At least $136,278,000 of the offering proceeds, representing the gross proceeds of this offering less allowable underwriting commissions, expenses and company deductions under Rule 419, would be required to be deposited into either an escrow account with an insured depositary institution or in a separate bank account established by a broker-dealer in which the broker-dealer acts as trustee for persons having the beneficial interests in the account. | ||||
Trading of securities issued | The units will begin trading on or promptly after the date of this prospectus. The Class A ordinary shares, warrants and rights constituting the units will begin separate trading on the 52nd day following the date of this prospectus (or, if such date is not a business day, the following business day) unless D. Boral Capital informs us of its decision to allow earlier separate trading, subject to our having filed the Current Report on Form 8-K described below and having issued a press release announcing when such | No trading of the units or the underlying ordinary shares, warrants and rights would be permitted until the completion of a business combination. During this period, the securities would be held in the escrow or trust account. company deductions under Rule 419, would be required to be deposited into either an escrow account with an insured depositary institution or in a separate bank account established by a broker-dealer in which the broker-dealer acts as trustee for | ||||
Terms of Our Offering | Terms Under a Rule 419 Offering | |||||
separate trading will begin. We will file the Current Report on Form 8-K promptly after the closing of this offering. If the underwriters’ option to purchase additional units is exercised following the initial filing of such Current Report on Form 8-K, a second or amended Current Report on Form 8-K will be filed to provide updated financial information to reflect the exercise of the underwriters’ option to purchase additional units. | persons having the beneficial interests in the account. | |||||
Investment of net proceeds | $152,930,850 of the net offering proceeds and the sale of the private placement securities held in trust will be (i) invested only in U.S. government treasury bills with a maturity of 185 days or less or in money market funds that meet certain conditions under Rule 2a-7 under the Investment Company Act and that invest only in direct U.S. government obligations and/or (ii) deposited in an interest bearing demand deposit account at a U.S. - chartered commercial bank with consolidated assets of $100 billion or more. | Proceeds could be invested only in specified securities such as a money market fund meeting conditions of the Investment Company Act or in securities that are direct obligations of, or obligations guaranteed as to principal or interest by, the United States. | ||||
Receipt of interest on escrowed funds | Interest on proceeds from the trust account to be paid to shareholders is reduced by: (i) taxes paid or payable and (ii) in the event of our liquidation for failure to complete our initial business combination within the allotted time, up to $100,000 of net interest that may be released to us should we have no or insufficient working capital to fund the costs and expenses of our dissolution and liquidation. | Interest on funds in escrow account would be held for the sole benefit of investors, unless and only after the funds held in escrow were released to us in connection with our completion of a business combination. | ||||
Limitation on fair value or net assets of target business | 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 trust account (excluding any taxes payable on the interest earned on the trust account) at the time of our agreement to enter into our initial business combination. | The fair value or net assets of a target business must represent at least 80% of the maximum offering proceeds. | ||||
Terms of Our Offering | Terms Under a Rule 419 Offering | |||||
Trading of securities issued | The units will begin trading on or promptly after the date of this prospectus. The Class A ordinary shares, warrants and rights constituting the units will begin separate trading on the 52nd day following the date of this prospectus (or, if such date is not a business day, the following business day) unless D. Boral Capital informs us of its decision to allow earlier separate trading, subject to our having filed the Current Report on Form 8-K described below and having issued a press release announcing when such separate trading will begin. We will file the Current Report on Form 8-K promptly after the closing of this offering. If the underwriters’ option to purchase additional units is exercised following the initial filing of such Current Report on Form 8-K, a second or amended Current Report on Form 8-K will be filed to provide updated financial information to reflect the exercise of the underwriters’ option to purchase additional units. | No trading of the units or the underlying ordinary shares, warrants and rights would be permitted until the completion of a business combination. During this period, the securities would be held in the escrow or trust account. | ||||
Exercise of the warrants | The warrants cannot be exercised until 30 days after the completion of our initial business combination. | The warrants could be exercised prior to the completion of a business combination, but securities received and cash paid in connection with the exercise would be deposited in the escrow or trust account. | ||||
Election to remain an investor | We will provide our public shareholders with the opportunity to redeem their public shares, regardless of whether they abstain, vote for, or vote against, our initial business combination, for cash equal to their pro rata share of the aggregate amount then on deposit in the trust account as of two business days prior to the consummation of our initial business combination, including interest, upon the completion of our initial business combination, subject to the limitations described herein. We may not be required by applicable law or stock exchange | A prospectus containing information pertaining to the business combination required by the SEC would be sent to each investor. Each investor would be given the opportunity to notify the company in writing, within a period of no less than 20 business days and no more than 45 business days from the effective date of a post-effective amendment to the company’s registration statement, to decide if he, she or it elects to remain a shareholder of the company or require the return of his, her or its | ||||
Terms of Our Offering | Terms Under a Rule 419 Offering | |||||
rules to hold a shareholder vote. If we are not required by applicable law or stock exchange rules and do not otherwise decide to hold a shareholder vote, we will, pursuant to our amended and restated memorandum and articles of conduct the redemptions pursuant to the tender offer rules of the SEC and file tender offer documents with the SEC which will contain substantially the same financial and other information about the initial business combination and the redemption rights as is required under the SEC’s proxy rules. If, however, we hold a shareholder vote, we will, like many blank check companies, offer to redeem shares in conjunction with a proxy solicitation pursuant to the proxy rules and not pursuant to the tender offer rules. | investment. If the company has not received the notification by the end of the 45th business day, funds and interest or dividends, if any, held in the trust or escrow account are automatically returned to the shareholder. Unless a sufficient number of investors elect to remain investors, all funds on deposit in the escrow account must be returned to all of the investors and none of the securities are issued. | |||||
Pursuant to the tender offer rules, the tender offer period will be not less than 20 business days and, in the case of a shareholder vote, a final proxy statement would be mailed to public shareholders at least 20 days prior to the shareholder vote. However, we expect that a draft proxy statement would be made available to such shareholders well in advance of such time, providing additional notice of redemption if we conduct redemptions in conjunction with a proxy solicitation. If we seek shareholder approval, we will complete our initial business combination only if we receive approval pursuant to an ordinary resolution under Cayman Islands law, which requires the affirmative vote of a simple majority of the shareholders who attend and vote at a general meeting of the company. | ||||||
Business combination deadline | If we are unable to complete an initial business combination within the completion window, we will: (1) cease all operations except for the purpose of winding up; (2) as promptly as reasonably possible but not more than ten business days | If an acquisition has not been completed within 18 months after the effective date of the company’s registration statement, funds held in the trust or escrow account are returned to investors. | ||||
Terms of Our Offering | Terms Under a Rule 419 Offering | |||||
thereafter, redeem 100% of the public shares, at a per share price, payable in cash, equal to the aggregate amount then on deposit in the trust account, including interest (less taxes payable and 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 shareholders’ rights as shareholders (including the right to receive further liquidating distributions, if any), subject to applicable law; and (3) as promptly as reasonably possible following such redemption, subject to the approval of our remaining shareholders and our board of directors, liquidate and dissolve, subject in each case to our obligations under Cayman Islands law to provide for claims of creditors and the requirements of other applicable law. | ||||||
Release of funds | The funds held in the trust account will not be released from the trust account until the earliest of: (1) the completion of our initial business combination; (2) the redemption of any public shares properly submitted in connection with a shareholder vote to amend our amended and restated memorandum and articles of association (A) to modify the substance or timing of our obligation to provide for the redemption of our public shares in connection with an initial business combination or to redeem 100% of our public shares if we have not consummated our initial business combination within the completion window or (B) with respect to any other provision relating to shareholders’ rights or pre-initial business combination activity; and (3) the redemption of all of our public shares if we are unable to complete our initial business combination within the completion window, subject to applicable law | The proceeds held in the escrow account are not released until the earlier of the completion of a business combination and the failure to effect a business combination within the allotted time. | ||||
Terms of Our Offering | Terms Under a Rule 419 Offering | |||||
Limitation on redemption rights of shareholders holding more than 15% of the shares sold in this offering if we hold a shareholder vote | If we seek shareholder approval of our initial business combination and we do not conduct redemptions in connection with our initial business combination pursuant to the tender offer rules, our amended and restated memorandum and articles of association will provide that a public shareholder, together with any affiliate of such shareholder or any other person with whom such shareholder is acting in concert or as a “group” (as defined under Section 13 of the Exchange Act), is restricted from seeking redemption rights with respect Excess Shares (more than an aggregate of 15% of the shares sold in this offering). Our public shareholders’ inability to redeem Excess Shares will reduce their influence over our ability to complete our initial business combination and they could suffer a material loss on their investment in us if they sell Excess Shares in open market transactions. | Some blank check companies provide no restrictions on the ability of shareholders to redeem shares based on the number of shares held by such shareholders in connection with an initial business combination. | ||||
Tendering share certificates in connection with a tender offer or redemption rights | We may require our public shareholders 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 date set forth in the tender offer documents or proxy materials mailed to such holders or up to two business days prior to the vote on the proposal to approve the business combination in the event we distribute proxy materials, or to deliver their shares to the transfer agent electronically using The Depository Trust Company’s DWAC (Deposit/Withdrawal At Custodian) System, at the holder’s option. The tender offer or proxy materials, as applicable, that we will furnish to holders of our public shares in connection with our initial business combination will indicate whether we are requiring public shareholders to satisfy such delivery requirements, which will include the requirement | In order to perfect redemption rights in connection with their business combinations, holders could vote against a proposed business combination and check a box on the proxy card indicating such holders were seeking to exercise their redemption rights. After the business combination was approved, the company would contact such shareholders to arrange for them to deliver their certificate to verify ownership. | ||||
Terms of Our Offering | Terms Under a Rule 419 Offering | |||||
that any beneficial owner on whose behalf a redemption right is being exercised must identify itself in order to validly redeem its shares. | ||||||
Accordingly, a public shareholder would have from the time we send out our tender offer materials until the close of the tender offer period, or up to two business days prior to the vote on the business combination if we distribute proxy materials, as applicable, to tender its shares if it wishes to seek to exercise its redemption rights. | ||||||
Name | Age | Title | ||||
Agustin Tristan Aldave | 39 | Chief Executive Officer, Director | ||||
Katherine Chiles | 44 | Chief Financial Officer | ||||
Alejandro F. Garza | 64 | Head of Water Investments | ||||
Edward Joseph Preble | 52 | Head of Investor Relations, Director Nominee | ||||
Kelly Burke | 48 | Director Nominee | ||||
Jesus Demetrio Tueme | 60 | Director Nominee | ||||
Jeff Smith | 51 | Director Nominee | ||||
• | Assisting board oversight of (1) the integrity of our financial statements, (2) our compliance with legal and regulatory requirements, (3) our independent registered public accounting firm’s qualifications and independence, and (4) the performance of our internal audit function and independent registered public accounting firm; |
• | Reviewing the appointment, compensation, retention, replacement, and oversight of the work of the independent registered public accounting firm and any other independent registered public accounting firm engaged by us; |
• | re-approving all audit and non-audit services to be provided by the independent registered public accounting firm or any other registered public accounting firm engaged by us, and establishing pre-approval policies and procedures; |
• | Reviewing and discussing with the independent registered public accounting firm all relationships the auditors have with us in order to evaluate their continued independence; |
• | Setting clear hiring policies for employees or former employees of the independent registered public accounting firm; |
• | Setting clear policies for audit partner rotation in compliance with applicable laws and regulations; |
• | Obtaining and reviewing a report, at least annually, from the independent registered public accounting firm describing (1) the independent registered public accounting firm’s internal quality-control procedures and (2) any material issues raised by the most recent internal quality-control review, or peer review, of the independent registered public accounting firm, or by any inquiry or investigation by governmental or professional authorities, within the preceding five years respecting one or more independent audits carried out by the firm and any steps taken to deal with such issues; |
• | Meeting to review and discuss our annual audited financial statements and quarterly financial statements with management and the independent registered public accounting firm, including reviewing our specific disclosures under “Management’s Discussion and Analysis of Financial Condition and Results of Operations”; |
• | Reviewing and approving any related party transaction required to be disclosed pursuant to Item 404 of Regulation S-K promulgated by the SEC prior to us entering into such transaction; and |
• | Reviewing with management, the independent registered public accounting firm, and our legal advisors, as appropriate, any legal, regulatory or compliance matters, including any correspondence with regulators or government agencies and any employee complaints or published reports that raise material issues regarding our financial statements or accounting policies and any significant changes in accounting standards or rules promulgated by the Financial Accounting Standards Board, the SEC or other regulatory authorities. |
• | Reviewing and approving on an annual basis the corporate goals and objectives relevant to our Chief Executive Officer’s compensation, evaluating our Chief Executive Officer’s performance in light of such goals and objectives and determining and approving the remuneration (if any) of our Chief Executive Officer based on such evaluation; |
• | Reviewing and making recommendations to our board of directors with respect to (or approving, if such authority is so delegated by our board of directors) the compensation, and any incentive- compensation and equity-based plans that are subject to board approval of all of our other officers; |
• | Reviewing our executive compensation policies and plans; |
• | Implementing and administering our incentive compensation equity-based remuneration plans; |
• | Assisting management in complying with our proxy statement and annual report disclosure requirements; |
• | Approving all special perquisites, special cash payments and other special compensation and benefit arrangements for our officers and employees; |
• | Producing a report on executive compensation to be included in our annual proxy statement; and |
• | Reviewing, evaluating and recommending changes, if appropriate, to the remuneration for directors. |
• | Identifying, screening and reviewing individuals qualified to serve as directors and recommending to the board of directors candidates for nomination for appointment at the annual general meeting or to fill vacancies on the board of directors; |
• | Developing and recommending to the board of directors and overseeing implementation of our corporate governance guidelines; |
• | Coordinating and overseeing the annual self-evaluation of the board of directors, its committees, individual directors and management in the governance of the company; and |
• | Reviewing on a regular basis our overall corporate governance and recommending improvements as and when necessary. |
• | duty to act in good faith in what the director or officer believes to be in the best interests of the company as a whole; |
• | duty to exercise powers for the purposes for which those powers were conferred and not for a collateral purpose; |
• | directors should not improperly fetter the exercise of future discretion; |
• | duty to exercise powers fairly as between different sections of shareholders; |
• | duty not to put themselves in a position in which there is a conflict between their duty to the company and their personal interests; and |
• | duty to exercise independent judgment. |
• | none of our officers or directors is required to commit his or her full time to our affairs and, accordingly, may have conflicts of interest in allocating his or her time among various business activities. |
• | in the course of their other business activities, our officers and directors may become aware of investment and business opportunities which may be appropriate for presentation to us as well as the other entities with which they are affiliated. Our management may have conflicts of interest in determining to which entity a particular business opportunity should be presented. Please see “— Directors and Executive Officers” for a description of our management’s other affiliations. |
• | our initial shareholders, officers and directors will agree to waive their redemption rights with respect to any founder shares and any public shares held by them in connection with the consummation of our initial business combination. Additionally, our initial shareholders, officers and directors will agree to waive their rights to liquidating distributions from the trust account with respect to any founder shares held by them if we fail to consummate our initial business combination within the completion window. However, if our initial shareholders or any of our officers, directors or affiliates 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 consummate our initial business combination within the completion window. If we do not complete our initial business combination within such applicable time period, the proceeds of the sale of the private placement units and restricted Class A shares held in the trust account will be used to fund the redemption of our public shares, and the private placement units and restricted Class A shares will expire worthless. Except as described herein, (1) pursuant to a letter agreement entered into with us, our initial shareholders, officers and directors will agree not to transfer, assign or sell any founder shares held by them until the earlier to occur of: (A) one year after completion of our initial business combination; or (B) if the closing price of our Class A ordinary shares equals or exceeds $12.00 per share (as adjusted for |
• | our key personnel may negotiate employment or consulting agreements with a target business in connection with a particular business combination. These agreements may provide for them to receive compensation following our initial business combination and as a result, may cause them to have conflicts of interest in determining whether to proceed with a particular business combination. |
• | our key personnel may have a conflict of interest with respect to evaluating a particular business combination if the retention or resignation of any such key personnel was included by a target business as a condition to any agreement with respect to our initial business combination. |
• | our sponsor, members of our management team and Meridien Peak will directly or indirectly own our securities following this offering, and accordingly, they may have a conflict of interest in determining whether a particular target business is an appropriate business with which to effectuate our initial business combination. Upon the closing of this offering, our initial shareholders will have invested in us an aggregate of $4,075,000 comprised of the $25,000 purchase price for the founder shares (or approximately $0.0043 per share) and the $4,050,000 purchase price for the private placement securities. Accordingly, our management team and our independent directors, which own interests in our sponsor, may be more willing to pursue a business combination with a riskier or less-established target business than would be the case if our sponsor had paid the same per share price for the founder shares as our public shareholders paid for their public shares. |
• | in the event our sponsor or members of our management team provide loans to us to finance transaction costs, or out-of-pocket reimbursement of expenses, in connection with an intended initial business combination and/or incur expenses on our behalf in connection with an initial business combination, such persons and accordingly, they may have a conflict of interest in determining whether a particular target business is an appropriate business with which to effectuate our initial business combination as such loans may not be repaid and/or such expenses may not be reimbursed unless we consummate such business combination. |
• | we are not prohibited from pursuing an initial business combination with a company that is affiliated with our sponsor, directors or members of our management team, Advisors or sponsor non-managing members; accordingly, such affiliated person(s) 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 as such affiliated person(s) would have interests different from our public shareholders. |
Individual(1) | Entity | Entity’s Business | Affiliation | ||||||
Agustin Tristan Aldave | Lexington Capital, S.A.P.I. de C.V Agrinam Acquisition Corporation. Above Food Ingredients Inc. | Financial Advisory Services SPAC Food Production | Director and CEO Director and CEO Director | ||||||
Lexington Water, SAPI de CV | Investment platform | Member | |||||||
Edward Joseph Preble | Alpamayo CPG and Private Label | Global Sales Consultancy | President | ||||||
Alpamayo Agrifund 1 LLC | Financial Advisory Services | Owner | |||||||
Katherine Chiles | — | — | — | ||||||
Alejandro F. Garza | Blukey, S.A. de C.V. Orange Tech, S.A.P.I. de C.V. Blutek, S.A. de C.V. EBD Blukey, L.L.C. | Water Treatment Services Water Treatment Services Water Treatment Services Water Treatment Services | Owner and CEO Owner Owner and President Owner | ||||||
Kelly Burke | Chamberlain Family Office Advisors Inc. | Financial Advisory Services | Partner | ||||||
Family Enterprise Stewards, Inc. | Financial Advisory Services | Owner | |||||||
Jesus Demetrio Tueme | Lexington Capital, S.A.P.I. de C.V | Financial Advisory Services | Advisor | ||||||
Change Dynamics Advisors LLC | Financial Advisory Services | Owner Principal | |||||||
Castle Placements LLC | Registered Broker Dealer | Securities Principal and Managing Director | |||||||
Jeff Smith | LawVisory PLLC | Legal and Consulting Services | Managing Attorney | ||||||
(1) | Each of the entities listed in this table may have competitive interests with our company with respect to the performance by each individual listed in this table of his or her obligations. |
• | each person known by us to be the beneficial owner of more than 5% of our outstanding ordinary shares; |
• | each of our executive officers, directors and director nominees; and |
• | all our executive officers and directors as a group. |
Before Offering | After Offering | |||||||||||
Name and Address of Beneficial Owner(1) | Number of Shares Beneficially Owned(2) | Approximate Percentage of Outstanding ordinary shares | Number of Shares Beneficially Owned(2) | Approximate Percentage of Outstanding ordinary shares | ||||||||
Globa Terra Management LLC(3)(4) | 5,833,183 | 100.0% | 5,484,108 | 26.8% | ||||||||
Agustin Tristan Aldave(3) | — | — | — | — | ||||||||
Katherine Chiles | — | — | — | — | ||||||||
Alejandro F. Garza | — | — | — | — | ||||||||
Edward Joseph Preble | — | — | — | — | ||||||||
Kelly Burke | — | — | — | — | ||||||||
Jesus Demetrio Tueme | — | — | — | — | ||||||||
Jeff Smith | — | — | — | — | ||||||||
All executive officers and directors as a group (7 individuals) | 5,833,183 | 100.0% | 5,484,108 | 26.8% | ||||||||
* | Less than 1% |
(1) | Unless otherwise noted, the business address of each of the following entities or individuals is c/o Globa Terra Acquisition Corporation, Homero 109, Despacho 1602, Polanco Ciudad de Mexico, Mexico, 11560. |
(2) | Interests shown consist of 5,072,333 Class B ordinary shares which are referred to herein as founder shares. The Class B ordinary shares will automatically convert into Class A ordinary shares at the time of our initial business combination or at any time prior thereto at the option of the holder thereof, on a one-for-one basis, subject to adjustment, as described in the section entitled “Description of Securities.” This number assumes that the underwriters’ over-allotment option is not exercised and that the sponsor forfeits 760,850 Class B ordinary shares. |
(3) | Globa Terra Management LLC is the record holder of the shares reported herein. Mr. Tristan, our Chief Executive Officer controls Global Terra Sponsor, LLC, the managing member of Globa Terra Management LLC. As such, he may be deemed to have or share beneficial ownership of the Class B ordinary shares held directly by Globa Terra Management LLC. Such person disclaims any beneficial ownership of the reported shares other than to the extent of any pecuniary interest he may have therein, directly or indirectly. |
(4) | The sponsor non-managing members have expressed an interest to purchase sponsor non-managing membership interests reflecting interests in an aggregate of 300,000 private placement securities to be purchased by our sponsor, at a price of $10.00 per private placement security ($3,000,000 in the aggregate) in private placements that will close simultaneously with the closing of this offering. The sponsor non-managing members are not granted any shareholder or other rights in addition to those afforded to our other public shareholders, and will only be issued membership interests in the sponsor, with no right to control the sponsor or vote or dispose of any securities held by the sponsor, including the founder shares held by the initial shareholders. |
• | payment to our sponsor for office space, administrative and shared personnel support services, in an amount equal to $15,000 per month, commencing on the first date on which our securities are listed on Nasdaq; |
• | reimbursement for any out-of-pocket expenses related to identifying, investigating and completing an initial business combination; |
• | repayment of loans which may be made by our sponsor, an affiliate of our sponsor or our officers and directors to finance transaction costs in connection with an intended initial business combination, the terms of which have not been determined nor have any written agreements been executed with respect thereto. Up to $2,500,000 of such loans may be convertible into private units of the post-business combination entity at a price of $10.00 per unit at the option of the lender. In addition, after the completion of this offering, our board of directors may approve additional working capital loans for the purpose of funding working capital, which loans may be converted into our private units, shares, rights, or warrants. The units would be identical to the private placement units. Except for the foregoing, the terms of such loans, if any, have not been determined and no written agreements exist with respect to such loans; and |
• | 15,217,000 Class A ordinary shares underlying the units being offered in this offering; |
• | 5,072,333 Class B ordinary shares held by our initial shareholders; and |
• | 506,250 Class A ordinary shares included in the private placement units. |
• | the names and addresses of the members of the company, a statement of the shares held by each member, which: |
• | distinguishes each share by its number (so long as the share has a number); |
• | confirms the amount paid, or agreed to be considered as paid, on the shares of each member; confirms the number and category of shares held by each member; and |
• | confirms whether each relevant category of shares held by a member carries voting rights under the Articles, and if so, whether such voting rights are conditional; |
• | the date on which the name of any person was entered on the register as a member; and |
• | the date on which any person ceased to be a member. |
• | in whole and not in part; |
• | at a price of $0.01 per public warrant; |
• | upon a minimum of 30 days’ prior written notice of redemption, or the 30-day redemption period, to each warrant holder; and |
• | if, and only if, the closing price of our Class A ordinary shares equals or exceeds $18.00 per share (as adjusted for adjustments to the number of shares issuable upon exercise or the exercise price of a public warrant as described under the heading “— Anti-Dilution Adjustments”) for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which we send the notice of redemption to the warrant holders (the “Reference Value”), provided that a registration statement under the Securities Act covering the issuance of the Class A ordinary shares issuable upon exercise of the warrants is effective and a current prospectus relating to those Class A ordinary shares is available throughout the 30-trading day measurement period. |
• | we are not proposing to act illegally or beyond the scope of our corporate authority and the statutory provisions as to majority vote have been complied with; |
• | the shareholders have been fairly represented at the meeting in question; the arrangement is such as a businessman would reasonably approve; and |
• | the arrangement is not one that would more properly be sanctioned under some other provision of the Companies Act or that would amount to a “fraud on the minority.” |
• | a company is acting, or proposing to act, illegally or ultra vires (beyond the scope of its authority); |
• | the act complained of, although not beyond the scope of the authority, could be effected if duly authorized by more than the number of votes which have actually been obtained; or |
• | those who control the company are perpetrating a “fraud on the minority.” |
• | an exempted company does not have to file an annual return of its shareholders with the Registrar of Companies; |
• | an exempted company’s register of members is not open to inspection; |
• | an exempted company does not have to hold an annual general meeting; |
• | an exempted company may issue shares with no par value; |
• | an exempted company may obtain an undertaking against the imposition of any future taxation (such undertakings are usually given for 30 years in the first instance); |
• | an exempted company may register by way of continuation in another jurisdiction and be deregistered in the Cayman Islands; |
• | an exempted company may register as a limited duration company; and an exempted company may register as a segregated portfolio company. |
• | if we do not consummate an initial business combination within the completion window, we will (i) cease all operations except for the purpose of winding up; (ii) as promptly as reasonably possible but no 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, if any (less taxes payable and up to $100,000 of interest to pay dissolution expenses), divided by the number of the then-outstanding public shares, which redemption will completely extinguish public shareholders’ rights as shareholders (including the right to receive further liquidation distributions, if any); and (iii) as promptly as reasonably possible following such redemption, subject to the approval of our remaining shareholders and our board of directors, liquidate and dissolve, subject in the case to our obligations under Cayman Islands law to provide for claims of creditors and the requirements of other applicable law; |
• | prior to the completion of our initial business combination, we may not issue additional securities that would entitle the holders thereof to (i) receive funds from the trust account or (ii) vote as a class with our public shares (a) on our initial business combination or on any other proposal presented to shareholders prior to or in connection with the completion of an initial business combination or (b) to approve an amendment to our amended and restated memorandum and articles of association to (x) extend the time we have to consummate a business combination beyond 15 months (or 21 months if we elect to extend the completion window as described herein) from the closing of this offering, or (y) amend the foregoing provisions; |
• | although we do not intend to enter into a business combination with a prospective partner business that is affiliated with our sponsor, Advisors, sponsor non-managing members, our directors or our executive officers, we are not prohibited from doing so. In the event we enter into such a transaction, we, or a committee of independent directors, will obtain an opinion from an independent investment banking firm or an independent valuation or accounting firm that such a business combination or transaction is fair to our company from a financial point of view; |
• | prior to our initial business combination, we may not, except in connection with the conversion of Class B ordinary shares into Class A ordinary shares where the holders of such shares have waived any rights to receive funds from the trust account, issue additional shares that would entitle the holders thereof to (i) receive funds from the trust account or (ii) vote as a class with public shares on any initial business combination; |
• | if a shareholder vote on our initial business combination is not required by applicable law or stock exchange rule and we do not decide to hold a shareholder vote for business or other reasons, we will offer to redeem our public shares pursuant to Rule 13e-4 and Regulation 14E of the Exchange Act, and will file tender offer documents with the SEC prior to completing our initial business combination which contain substantially the same financial and other information about our initial business combination and the redemption rights as is required under Regulation 14A of the Exchange Act; |
• | our initial business combination must occur with one or more prospective partner businesses that together have an aggregate fair market value of at least 80% of the fair market value held in the trust account (excluding the taxes payable on the interest earned on the trust account) at the time of signing the agreement to enter into the initial business combination; |
• | if our shareholders approve an amendment to our amended and restated memorandum and articles of association (A) that would modify the substance or timing of our obligation to provide holders of our Class A ordinary shares the right to have their shares redeemed in connection with our initial business combination or to redeem 100% of our public shares if we do not complete our initial business combination within the completion window, or (B) with respect to any other provision relating to the rights of holders of our Class A ordinary shares or pre-initial business combination activity, we will provide our public shareholders with the opportunity to redeem all or a portion of their ordinary shares upon such approval 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, if any, divided by the number of the then-outstanding public shares, subject to the limitations described herein; |
• | we will not effectuate our initial business combination solely with another blank check company or a similar company with nominal operations; and |
• | only holders of our Class B ordinary shares have the right to vote on appointing or removing directors or continuing our company in a jurisdiction outside the Cayman Islands (as further described herein), prior to the consummation of our initial business combination. |
(i) | where this is necessary for the performance of our rights and obligations under any purchase agreements; |
(ii) | where this is necessary for compliance with a legal and regulatory obligation to which we are subject (such as compliance with anti-money laundering and FATCA/CRS requirements); and/or |
(iii) | where this is necessary for the purposes of our legitimate interests and such interests are not overridden by your interests, fundamental rights or freedoms. |
• | 1% of the total number of Class A ordinary shares then outstanding, which will equal 152,170 shares immediately after this offering (or 174,996 if the underwriters exercise their option to purchase additional units in full); or |
• | the average weekly reported trading volume of the ordinary shares during the four calendar weeks preceding the filing of a notice on Form 144 with respect to the sale. |
• | the issuer of the securities that was formerly a shell company has ceased to be a shell company; |
• | the issuer of the securities is subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act; |
• | the issuer of the securities has filed all Exchange Act reports and material required to be filed, as applicable, during the preceding 12 months (or such shorter period that the issuer was required to file such reports and materials), other than Current Reports on Form 8-K; and |
• | at least one year has elapsed from the time that the issuer filed current Form 10 type information with the SEC reflecting its status as an entity that is not a shell company. |
1. | That no law which is hereafter enacted in the Islands imposing any tax to be levied on profits, income, gains or appreciations shall apply to the Company or its operations; and |
2. | In addition, that no tax to be levied on profits, income, gains or appreciations or which is in the nature of estate duty or inheritance tax shall be payable: |
2.1 | On or in respect of the shares, debentures or other obligations of the Company; or |
2.2 | by way of the withholding in whole or part, of any relevant payment as defined in Section 6(3) of the Tax Concessions Act (As Revised). |
• | entities or arrangements treated as partnerships or pass-through entities for U.S. federal income tax purposes or holders of interests therein; |
• | our founders, sponsor, officers or directors or other holders of our Class B ordinary shares, private placement units or restricted Class A ordinary shares; |
• | banks, insurance companies or other financial institutions; |
• | tax-exempt or governmental organizations; |
• | “qualified foreign pension funds” as defined in Section 897(l)(2) of the Code (or any entities all of the interests of which are held by a qualified foreign pension fund); |
• | dealers in securities or foreign currencies; |
• | U.S. Holders (as defined below) whose functional currency is not the U.S. dollar; |
• | traders in securities that use the mark-to-market method of accounting for U.S. federal income tax purposes; |
• | “controlled foreign corporations,” “passive foreign investment companies” and corporations that accumulate earnings to avoid U.S. federal income tax; |
• | persons deemed to sell our securities under the constructive sale provisions of the Code; |
• | persons that acquired our securities through the exercise of employee share options or otherwise as compensation or through a tax-qualified retirement plan; |
• | persons that actually or constructively own five (5) percent or more (by vote or value) of any class of our shares; |
• | persons that hold our securities as part of a straddle, appreciated financial position, synthetic security, hedge, conversion transaction or other integrated investment or risk reduction transaction; |
• | certain former citizens or long-term residents of the United States; |
• | regulated investment companies; and |
• | real estate investment trusts. |
• | an individual who is a citizen or resident of the United States; |
• | a corporation (or other entity treated as a corporation for U.S. federal income tax purposes) created or organized in or under the laws of the United States, any state thereof or the District of Columbia; |
• | an estate the income of which is subject to U.S. federal income tax regardless of its source; or |
• | a trust (A) the administration of which is subject to the primary supervision of a U.S. court and which has one or more “United States persons” (within the meaning of Section 7701(a)(30) of the Code) who have the authority to control all substantial decisions of the trust or (B) that has made a valid election under applicable U.S. Treasury regulations to be treated as a United States person. |
(i) | at least 75% of our gross income for such taxable year, including our pro rata share of the gross income of any corporation in which we are considered to own at least 25% of the shares by value, consists of passive income (which generally includes dividends, interest, rents and royalties (other than rents or royalties derived from the active conduct of a trade or business) and gains from the disposition of passive assets); or |
(ii) | at least 50% of our assets in a taxable year (ordinarily determined based on fair market value and averaged quarterly over the year), including our pro rata share of the assets of any corporation in which we are considered to own at least 25% of the shares by value, produce or are held for the production of passive income. |
• | the U.S. Holder’s gain or excess distribution will be allocated ratably over the U.S. Holder’s holding period for the Class A ordinary shares, rights or public warrants; |
• | the amount allocated to the U.S. Holder’s taxable year in which the U.S. Holder realized the gain or received the excess distribution, or to the portion of the U.S. Holder’s holding period prior to the first day of our first taxable year in which we are a PFIC, will be taxed as ordinary income; and |
• | the amount allocated to each of the other taxable years (or portions thereof) of the U.S. Holder will be subject to tax at the highest tax rate in effect for the U.S. Holder in that year (and would not be eligible for the lower long-term capital gains rate), and an interest charge for the deemed deferral benefit will be imposed with respect to the resulting tax attributable to each such other taxable year (or portion thereof). |
Underwriter | Number of Units | ||
D. Boral Capital LLC | |||
Total | 15,217,000 | ||
No Exercise | Full Exercise | |||||
Per Unit(1) | $0.05 | $0.05 | ||||
Total(1) | $750,000 | $750,000 | ||||
(1) | Includes $0.05 per unit (excluding units sold pursuant to the underwriters’ option to purchase additional units), or $750,000 in the aggregate payable to the underwriters upon the closing of this offering. |
• | Over-allotment involves sales by the underwriters of units in excess of the number of units the underwriters are obligated to purchase, which creates a syndicate short position. The short position may be either a covered short position or a naked short position. In a covered short position, the number of units over-allotted by the underwriters is not greater than the number of units that they may purchase in the |
• | Syndicate covering transactions involve purchases of the units in the open market after the distribution has been completed in order to cover syndicate short positions. In determining the source of units to close out the short position, the underwriters will consider, among other things, the price of units available for purchase in the open market as compared to the price at which they may purchase units through the over-allotment option. If the underwriters sell more units than could be covered by the over-allotment option, a naked short position, the position can only be closed out by buying units in the open market. A naked short position is more likely to be created if the underwriters are concerned that there could be downward pressure on the price of the units in the open market after pricing that could adversely affect investors who purchase in this offering. |
• | Penalty bids permit the representative to reclaim a selling concession from a syndicate member when the units originally sold by the syndicate member are purchased in a stabilizing or syndicate covering transaction to cover syndicate short positions. |
(a) | to legal entities which are qualified investors as defined in the Prospectus Regulation; |
(b) | to fewer than 150 natural or legal persons (other than qualified investors as defined in the Prospectus Regulation) subject to obtaining the prior consent of the underwriters for any such offer; or |
(c) | in any other circumstances which do not require the publication by the issuer of a prospectus pursuant to Article 1(4) of the Prospectus Regulation. |
(a) | to any legal entity which is a qualified investor as defined in Article 2 of the UK Prospectus Regulation; |
(b) | to fewer than 150 natural or legal persons (other than qualified investors as defined in the UK Prospectus Regulation) in the United Kingdom subject to obtaining the prior consent of the underwriters for any such offer; or |
(c) | at any time in any other circumstances falling within section 86 of the FSMA, |
(a) | it has only communicated or caused to be communicated and will only communicate or cause to be communicated an invitation or inducement to engage in investment activity (within the meaning of section 21 of FSMA) in circumstances in which section 21(1) of FSMA does not apply to the company; and |
(b) | it has complied with, and will comply with all applicable provisions of FSMA with respect to anything done by it in relation to the units in, from or otherwise involving the United Kingdom. |
• | a corporation (which is not an accredited investor (as defined in Section 4A of the SFA)) the sole business of which is to hold investments and the entire share capital of which is owned by one or more individuals, each of whom is an accredited investor; or |
• | a trust (where the trustee is not an accredited investor) whose sole purpose is to hold investments and each beneficiary is an accredited investor, shares, debentures and units of shares and debentures of that corporation or the beneficiaries’ rights and interest (howsoever described) in that trust shall not be transferred within six months after that corporation or that trust has acquired the shares pursuant to an offer made under Section 275 of the SFA except: |
• | to an institutional investor (for corporations, under Section 274 of the SFA) or to a relevant person defined in Section 275(2) of the SFA, or to any person pursuant to an offer that is made on terms that such shares, debentures and units of shares and debentures of that corporation or such rights and interest in that trust are acquired at a consideration of not less than $200,000 (or its equivalent in a foreign currency) for each transaction, whether such amount is to be paid for in cash or by exchange of securities or other assets, and further for corporations, in accordance with the conditions specified in Section 275 of the SFA; |
• | the purchaser is entitled under applicable provincial securities laws to purchase the units without the benefit of a prospectus qualified under those securities laws as it is an “accredited investor” as defined under National Instrument 45 - 106 - Prospectus Exemptions or Section 73.3 of the Securities Act (Ontario), as applicable; |
• | the purchaser is a “permitted client” as defined in National Instrument 31 - 103 - Registration Requirements, Exemptions and Ongoing Registrant Obligations; |
• | where required by law, the purchaser is purchasing as principal and not as agent; and |
• | the purchaser has reviewed the text above under Resale Restrictions. |
Page | |||
Audited Financial Statements of Globa Terra Acquisition Corporation: | |||
December 31, 2024 | |||
ASSETS | |||
Prepaid expenses | $2,343 | ||
Total Current Assets | 2,343 | ||
Deferred offering costs | 575,339 | ||
Total Assets | $577,682 | ||
LIABILITIES AND SHAREHOLDER’S EQUITY | |||
Current Liabilities: | |||
Accrued offering costs | $552,682 | ||
Total Current Liabilities | 552,682 | ||
Commitments and contingencies (Note 6) | |||
Shareholder’s Equity: | |||
Preference shares, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding. | — | ||
Class A ordinary shares, $0.0001 par value, 200,000,000 shares authorized, none issued and outstanding | — | ||
Class B ordinary shares, $0.0001 par value, 20,000,000 shares authorized, 5,833,183 shares issued and outstanding(1)(2) | 583 | ||
Additional paid-in capital | 24,417 | ||
Retained earnings | — | ||
Total Shareholder’s Equity | 25,000 | ||
Total Liabilities and Shareholder’s Equity | $577,682 | ||
(1) | Includes an aggregate of up to 760,850 Class B ordinary shares subject to forfeiture if the over-allotment option is not exercised in full or in part by the underwriter (see Note 7). |
(2) | Shares and associated accounts have been retroactively restated to reflect the surrender of 1,354,317 Class B ordinary shares to the Company for no consideration on March 25, 2025. |
For the period from October 18, 2024 (inception) through December 31, 2024 | |||
Formation and operating expenses | $— | ||
TOTAL EXPENSES | — | ||
Net loss | $— | ||
Weighted average shares outstanding basic and diluted(1)(2) | 5,072,333 | ||
Basic and diluted net loss per ordinary share | $(0.00) | ||
(1) | Excludes an aggregate of up to 760,850 Class B ordinary shares subject to forfeiture if the over-allotment option is not exercised in full or in part by the underwriter (see Note 7). |
(2) | Shares and associated accounts have been retroactively restated to reflect the surrender of 1,354,317 Class B ordinary shares to the Company for no consideration on March 25, 2025. |
Shares | Amount | Additional Paid-In Capital | Accumulated Deficit | Shareholder’s Equity | |||||||||||
Balance, October 18, 2024 (inception) | — | $— | $— | $— | $— | ||||||||||
Issuance of Class B ordinary shares to Sponsor(1)(2) | 5,833,183 | 583 | 24,417 | — | 25,000 | ||||||||||
Balance, December 31, 2024 | 5,833,183 | $583 | $24,417 | $— | $25,000 | ||||||||||
(1) | Includes an aggregate of up to 760,850 Class B ordinary shares subject to forfeiture if the over-allotment option is not exercised in full or in part by the underwriter (see Note 7). |
(2) | Shares and associated accounts have been retroactively restated to reflect the surrender of 1,354,317 Class B ordinary shares to the Company for no consideration on March 25, 2025. |
For the period from October 18, 2024 (inception) through December 31, 2024 | |||
Cash Flows From Operating Activities: | |||
Net loss | $— | ||
Net Cash Provided By Operating Activities | — | ||
Cash at beginning of period | — | ||
Cash at end of period | $— | ||
Supplemental Schedule of Non-Cash Financing Activities: | |||
Class B ordinary shares issued in exchange for vendor payment | $25,000 | ||
Deferred offering costs included in accrued offering costs | $552,682 | ||
• | Level 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets; |
• | Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and |
• | Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. |
• | in whole and not in part; |
• | at a price of $0.01 per Public Warrant; |
• | upon a minimum of 30 days’ prior written notice of redemption, or the 30-day redemption period to each warrant holder; and |
• | if, and only if, the last reported sale price of the Class A ordinary shares equals or exceeds $18.00 per share (as adjusted for share splits, share dividends, reorganization, recapitalizations and the like) for any 10 trading days within a 20-trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to warrant holders. |
Item 13. | Other Expenses of Issuance and Distribution. |
SEC/FINRA expenses | $53,541 | ||
Accounting Fees and expenses | 90,000 | ||
Printing and engraving expenses | 50,000 | ||
Legal fees and expenses | 400,000 | ||
Nasdaq Listing and filing fees | 75,000 | ||
Miscellaneous | 638,359 | ||
Total | $1,306,900 | ||
Item 14. | Indemnification of Directors and Officers. |
Item 15. | Recent Sales of Unregistered Securities. |
Item 16. | Exhibits and Financial Statement Schedules. |
(c) | Exhibits. The list of exhibits preceding the signature page of this registration statement is incorporated herein by reference. |
(d) | Financial Statements. See page F-1 for an index to the financial statements and schedules included in the registration statement. |
Exhibit | Description | ||
1.1 | Form of Underwriting Agreement** | ||
Memorandum and Articles of Association* | |||
3.2 | Amended and Restated Memorandum and Articles of Association** | ||
4.1 | Specimen Unit Certificate** | ||
4.2 | Specimen Class A Ordinary Share Certificate** | ||
4.3 | Specimen Warrant Certificate** | ||
4.4 | Specimen Right Certificate** | ||
4.4 | Form of Warrant Agreement between Odyssey Trust Company, LLC and the Registrant** | ||
4.5 | Form of Right Agreement between Odyssey Trust Company, LLC and the Registrant** | ||
5.1 | Opinion of Paul Hastings LLP** | ||
5.2 | Opinion of Maples and Calder (Cayman) LLP, Cayman Islands Legal Counsel to the Registrant** | ||
10.1 | Form of Letter Agreement among the Registrant and Registrant’s initial shareholders, officers, directors** | ||
10.2 | Form of Investment Management Trust Agreement between Odyssey Trust Company, LLC and the Registrant** | ||
10.3 | Form of Registration Rights Agreement between the Registrant and certain security holders** | ||
Securities Subscription Agreement, between the Registrant and the Sponsor* | |||
10.5 | Form of Private Placement Units and Restricted Share Purchase Agreement** | ||
10.6 | Form of Indemnity Agreement** | ||
10.7 | Form of Administrative Services Agreement between the Registrant and the Sponsor** | ||
Amended and Restated Consulting Agreement, dated as of February 19, 2025, between Registrant and Meteora Capital, LLC* | |||
14 | Form of Code of Ethics** | ||
Consent of Adeptus Partners, LLC* | |||
23.2 | Consent of Paul Hastings LLP (included in Exhibit 5.1)** | ||
23.3 | Consent of Maples and Calder (Cayman) LLP (included in Exhibit 5.2)** | ||
Power of Attorney (included on signature page of the initial filing of this Registration Statement)* | |||
99.1 | Form of Audit Committee Charter** | ||
99.2 | Form of Compensation Committee Charter** | ||
99.3 | Form of Nominating and Corporate Governance Committee Charter** | ||
Consent of Kelly Burke to be named as director nominee* | |||
Consent of Jesus Demetrio Tueme to be named as director nominee* | |||
Consent of Edward Joseph Preble to be named as director nominee* | |||
Consent of Jeff Smith to be named as director nominee* | |||
99.8 | Form of Clawback Policy** | ||
Filing Fee Table* | |||
* | Filed herewith. |
** | To be filed by amendment. |
*** | Previously filed. |
Item 17. | Undertakings. |
(a) | The undersigned registrant hereby undertakes to file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement: |
(1) | To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933; |
(2) | To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in |
(3) | To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement. |
(b) | The undersigned registrant hereby undertakes to remove from registration by means of a post- effective amendment any of the securities being registered which remain unsold at the termination of the offering. |
(c) | The undersigned registrant hereby undertakes to provide to the underwriters at the closing specified in the underwriting agreements, certificates in such denominations and registered in such names as required by the underwriters to permit prompt delivery to each purchaser. |
(d) | Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue. |
(e) | The undersigned registrant hereby undertakes that: |
(1) | For purposes of determining any liability under the Securities Act of 1933, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective. |
(2) | For the purpose of determining any liability under the Securities Act of 1933, each post- effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. |
Globa Terra Acquisition Corporation | ||||||
By: | ||||||
/s/ Agustin Tristan Aldave | ||||||
Name: Agustin Tristan Aldave | ||||||
Title: Chief Executive Officer | ||||||
Name | Position | Date | ||||
/s/ Agustin Tristan Aldave | Chief Executive Officer (Principal Executive Officer) | April 16, 2025 | ||||
Agustin Tristan Aldave | ||||||
/s/ Katherine Chiles | Chief Financial Officer (Principal Financial and Accounting Officer) | April 16, 2025 | ||||
Katherine Chiles | ||||||
By: | /s/ Katherine Chiles | |||||
Name: Katherine Chiles | ||||||
Title: Chief Financial Officer (Principal Financial and Accounting Officer) | ||||||