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Filed Pursuant to Rule 424(b)(4)
Registration No. 333-252910

PROSPECTUS

$300,000,000

Post Holdings Partnering Corporation

30,000,000 Units

Post Holdings Partnering Corporation is a newly organized company, incorporated as a Delaware corporation, established for the purpose of identifying a company to partner with in order to effectuate a merger, share exchange, asset acquisition, share purchase, reorganization or similar partnering transaction with one or more businesses, which we refer to throughout this prospectus as a “partnering transaction.” We have not selected any company to partner with and we have not, nor has anyone on our behalf, engaged in any substantive discussions, directly or indirectly, with any company to partner with regarding a partnering transaction. We may pursue a partnering transaction with any company in any industry. While we will not be limited to a particular industry or geographic region, given the experience of our management team, our partnering transaction and value creation strategy will be to identify and build a company in partnership with a company, its management team and existing owners.

(Prospectus cover continued on the following page.)

We are an “emerging growth company” under applicable federal securities laws and will be subject to reduced public company reporting requirements. Investing in our securities involves risks. See “Risk Factors” on page 45. Investors will not be entitled to protections normally afforded to investors in Rule 419 blank check offerings.

 

     Price to Public      Underwriting
Discounts and
Commissions(1)(2)
     Proceeds,
before
expenses, to us
 

Per Unit

   $ 10.00      $ 0.55      $ 9.45  

Total

   $ 300,000,000      $ 16,500,000      $ 283,500,000  

 

(1)

$0.20 per unit, or $6,000,000 in the aggregate (or $6,900,000 if the underwriters’ over-allotment option is exercised in full), is payable upon the closing of this offering. Includes $0.35 per unit, or $10,500,000 in the aggregate (or up to $12,075,000 in the aggregate if the underwriters’ over-allotment option is exercised in full) payable to the underwriters for deferred underwriting commissions to be placed in a trust account located in the United States and released to the underwriters only upon the completion of a partnering transaction. See also “Underwriting” for a description of compensation and other items of value payable to the underwriters.

(2)

Assumes our sponsor, or an affiliate of our sponsor, does not purchase any public units in this offering. Public units purchased by our sponsor or an affiliate of our sponsor in this offering, if any, will not be subject to underwriting discounts and commissions. See above and “Principal Stockholders — Indication of Interest” for additional information.

Of the proceeds we receive from this offering and the sale of the private placement units described in this prospectus, $300.0 million, or $345.0 million if the underwriters’ over-allotment option is exercised in full ($10.00 per unit), will be deposited into a United States-based trust account with Continental Stock Transfer & Trust Company acting as trustee. Except with respect to interest earned on the funds held in the trust account that may be released to us to pay our taxes, if any, the funds held in the trust account will not be released from the trust account until the earliest of: (1) the completion of our partnering transaction; (2) the redemption of any public shares properly submitted in connection with a stockholder vote to amend our amended and restated certificate of incorporation (A) to modify the substance or timing of our obligation to allow redemptions in connection with our partnering transaction or to redeem 100% of our public shares if we do not complete our partnering transaction within 24 months from the closing of this offering (or 27 months from the closing of this offering if we have executed a letter of intent, agreement in principle or definitive agreement for a partnering transaction within 24 months from the closing of this offering, which we refer to as an “agreement in principle event” throughout this prospectus, or such later date as approved by holders of a majority of the voting power of shares of our outstanding common stock that are voted at the meeting to extend such date, voting together as a single class) or (B) with respect to any other provision relating to stockholders’ rights or pre-partnering transaction activity; and (3) the redemption of all of our public shares if we have not completed our partnering transaction within 24 months from the closing of this offering (or 27 months following an agreement in principle event), subject to applicable law. The proceeds deposited in the trust account could become subject to the claims of our creditors, if any, which could have priority over the claims of our public stockholders.

The underwriters are offering the units for sale on a firm commitment basis. Delivery of the units will be made on or about May 28, 2021.

Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.

Joint Book-running Managers

 

Evercore ISI   Barclays

Co-Manager

I-Bankers Securities, Inc.

The date of this prospectus is May 25, 2021


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(Prospectus cover continued from preceding page.)

This is an initial public offering of our securities. Each unit has an offering price of $10.00 and consists of one share of our Series A common stock and one-third of one redeemable warrant. Each whole warrant entitles the holder thereof to purchase one share of our Series A common stock at a price of $11.50 per share, subject to adjustment as described in this prospectus, and only whole warrants are exercisable. No fractional warrants will be issued upon separation of the units and only whole warrants will trade. The warrants will become exercisable on the later of 30 days after the completion of our partnering transaction and 12 months from the closing of this offering, and will expire five years after the completion of our partnering transaction or earlier upon redemption or liquidation, as described in this prospectus. Subject to the terms and conditions described in this prospectus, we may redeem the warrants once the warrants become exercisable. We have also granted the underwriters a 45-day option to purchase up to an additional 4,500,000 units to cover over-allotments, if any.

We will provide our public stockholders with the opportunity to redeem all or a portion of their shares of our Series A common stock upon the completion of our partnering transaction at a per-share price described in this prospectus, payable in cash, subject to the limitations described herein. If we have not completed our partnering transaction within 24 months from the closing of this offering, or 27 months following an agreement in principle event, as such period may be extended, we will redeem 100% of the public shares at a per-share price described in this prospectus, payable in cash, subject to applicable law.

Our sponsor, PHPC Sponsor, LLC, a Delaware limited liability company (which we refer to as our “sponsor” throughout this prospectus), is a wholly owned subsidiary of Post Holdings, Inc., a Missouri corporation (which we refer to as “Post” throughout this prospectus). Our sponsor will commit to purchase an aggregate of 1,000,000 units (or 1,090,000 units if the underwriters’ over-allotment option is exercised in full) at a price of $10.00 per unit ($10,000,000 in the aggregate, or $10,900,000 in the aggregate if the underwriters’ over-allotment option is exercised in full) in a private placement that will close simultaneously with the closing of this offering. The private placement units are identical to the units sold in this offering, subject to certain limited exceptions as described in this prospectus.

Our sponsor has also indicated that it or one of its affiliates has an interest in purchasing, directly or indirectly, up to 4,000,000 units in this offering at the public offering price. The underwriters will not receive any underwriting discounts or commissions (including, without limitation, deferred underwriting commissions) on public units purchased by our sponsor or its affiliate. However, indications of interest are not binding agreements or commitments to purchase and our sponsor or its affiliate may decide not to purchase any public units in this offering. In addition, the underwriters could determine to sell fewer public units to our sponsor or its affiliate than it indicated an interest in purchasing or could determine not to sell any public units to our sponsor or its affiliate.

In connection with the consummation of this offering, we will enter into a forward purchase agreement with our sponsor pursuant to which our sponsor will commit to purchase from us up to 10,000,000 forward purchase units, consisting of one share of Series B common stock, or a “forward purchase share,” and one-third of one warrant to purchase one share of Series A common stock, or a “forward purchase warrant,” for $10.00 per forward purchase unit, in an aggregate amount of up to $100,000,000, in a private placement that will close concurrently with the closing of our partnering transaction. The proceeds from the sale of these forward purchase units, together with the amounts available to us from the trust account (after giving effect to any redemptions of public shares) and any other equity or debt financing obtained by us in connection with the partnering transaction, will be used to satisfy the cash requirements of the partnering transaction, including funding the purchase price and paying expenses and retaining specified amounts to be used by the post-partnering transaction company for working capital or other purposes. To the extent that the amounts available from the trust account and other financing are sufficient for such cash requirements, our sponsor may purchase less than 10,000,000 forward purchase units. The terms of the forward purchase warrants will generally be identical to the terms of the redeemable warrants included in the units being issued in this offering.

As of the date of this prospectus, our sponsor holds 8,625,000 shares of Series F common stock (which we refer to as our “founder shares” throughout this prospectus), up to 1,125,000 of which are subject to forfeiture depending on the extent to which the underwriters’ over-allotment option is exercised. The shares of Series F common stock will automatically convert into shares of Series B common stock at the time of our partnering transaction, or earlier at the option of the holder, on a one-for-one basis. Prior to and following our partnering transaction, each share of Series B common stock is convertible, at the option of the holder, into one share of our Series A common stock.

Prior to the completion of our partnering transaction, only holders of our Series F common stock will have the right to elect our directors. On any vote to approve our partnering transaction or on any other matter submitted to a vote of our stockholders prior to our partnering transaction, holders of our Series A common stock, holders of our Series B common stock, if any, and holders of our Series F common stock will generally vote together as a single class, except as required by Delaware law or stock exchange rule, with each share of our common stock entitling the holder to one vote. Following our partnering transaction, holders of our Series A common stock and holders of our Series B common stock will generally vote together as a single class on all matters presented for a stockholder vote, except as required by Delaware law or stock exchange rule, with each share of Series A common stock entitling the holder to one vote per share and each share of Series B common stock entitling the holder to ten votes per share. This high vote feature of our Series B common stock differs from the typical capital structure of many other special purpose acquisition companies, in which the number of votes for founder shares and public shares remain the same after the partnering transaction.

In addition, certain members of our management team, and officers and directors of Post and their affiliates, may purchase our securities in the open market following the IPO and enter into an agreement in accordance with the guidelines of Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), to place limit orders, through an independent broker-dealer registered under Section 15 of the Exchange Act which is not affiliated with us nor part of the underwriting or selling group, to purchase our securities in the open market at market prices, subject to certain conditions.

Prior to this offering, there has been no public market for our units, Series A common stock or warrants. We have been approved to list our units on the New York Stock Exchange, or the NYSE, under the symbol “PSPC.U” on or promptly after the date of this prospectus. The Series A common stock and warrants constituting the units will begin separate trading on the 52nd day following the date of this prospectus, unless Evercore Group L.L.C. and Barclays Capital Inc. inform us of their decision to allow earlier separate trading, subject to certain conditions. Once the securities constituting the units begin separate trading, we expect that the Series A common stock and warrants will be listed on the NYSE under the symbols “PSPC” and “PSPC WS” respectively.

We are responsible for the information contained in this prospectus. We have not authorized anyone to provide any information or to make any representations other than those contained in this prospectus. We and the underwriters take no responsibility for, and can provide no assurance as to the reliability of, any other information that others may give you. This prospectus is an offer to sell only the units offered hereby, but only under circumstances and in jurisdictions where it is lawful to do so. The information contained in this prospectus is current only as of its date.


Table of Contents

TABLE OF CONTENTS

 

SUMMARY

     1  

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS AND RISK FACTOR SUMMARY

     43  

RISK FACTORS

     45  

USE OF PROCEEDS

     85  

DIVIDEND POLICY

     90  

DILUTION

     91  

CAPITALIZATION

     93  

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

     95  

PROPOSED BUSINESS

     101  

MANAGEMENT

     140  

PRINCIPAL STOCKHOLDERS

     149  

CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS

     153  

DESCRIPTION OF SECURITIES

     157  

UNITED STATES FEDERAL INCOME TAX CONSIDERATIONS

     175  

UNDERWRITING

     185  

LEGAL MATTERS

     193  

EXPERTS

     193  

WHERE YOU CAN FIND ADDITIONAL INFORMATION

     193  

INDEX TO FINANCIAL STATEMENTS

     F-1  

Trademarks

This prospectus contains references to trademarks and service marks belonging to other entities. Solely for convenience, trademarks and trade names referred to in this prospectus may appear without the ® or symbols, but such references are not intended to indicate, in any way, that the applicable licensor will not assert, to the fullest extent under applicable law, its rights to these trademarks and trade names. We do not intend our use or display of other companies’ trade names, trademarks or service marks to imply a relationship with, or endorsement or sponsorship of us by, any other companies.

 

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SUMMARY

This summary only highlights the more detailed information appearing elsewhere in this prospectus. As this is a summary, it does not contain all of the information that you should consider in making an investment decision. You should read this entire prospectus carefully, including the information under “Risk Factors” and our financial statements and the related notes included elsewhere in this prospectus, before investing.

Unless otherwise stated in this prospectus or the context otherwise requires, references to:

 

   

“agreement in principle event” are to when we have executed a letter of intent, agreement in principle or definitive agreement for a partnering transaction within 24 months from the closing of this offering but have not completed the partnering transaction within such 24-month period;

 

   

“amended and restated bylaws” are to our bylaws to be in effect upon the completion of this offering;

 

   

“amended and restated certificate of incorporation” are to our certificate of incorporation to be in effect upon the completion of this offering;

 

   

“common stock” are to our Series A common stock, our Series B common stock, our Series C common stock and our Series F common stock;

 

   

“company,” “our company” or “PHPC” are to Post Holdings Partnering Corporation, a Delaware corporation;

 

   

“directors” are to our current directors;

 

   

“equity-linked securities” are to any debt or equity securities that are convertible, exercisable or exchangeable for shares of our common stock issued in a financing transaction in connection with our partnering transaction, including but not limited to a private placement of equity or debt;

 

   

“forward purchase agreement” are to the agreement providing for the purchase of 10,000,000 forward purchase units at a price of $10.00 per unit, each consisting of one forward purchase share and one-third of a forward purchase warrant, by our sponsor in a private placement that will close substantially concurrently with the consummation of our partnering transaction;

 

   

“forward purchase shares” are to the Series B shares of common stock included in the forward purchase units;

 

   

“forward purchase units” are to the units to be acquired by our sponsor in connection with our partnering transaction;

 

   

“forward purchase warrants” are to the warrants to purchase our shares of Series A common stock included in the forward purchase units;

 

   

“founder shares” are to shares of our Series F common stock initially purchased by our sponsor in a private placement prior to this offering, shares of our Series B common stock issued upon the conversion of such shares of Series F common stock and shares of our Series A common stock issued upon the conversion of such shares of Series B common stock;

 

   

“initial stockholders” are to holders of our founder shares prior to this offering;

 

   

“management” or our “management team” are to our officers and directors;

 

   

“Post” are to Post Holdings, Inc., the parent of our sponsor;

 

   

“private placement shares” are to the shares of Series A common stock sold as part of the private placement units;

 

   

“private placement units” are to the units to be issued to our sponsor in a private placement simultaneously with the closing of this offering and upon conversion of working capital loans, if any;



 

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“private placement warrants” are to the warrants sold as part of the private placement units or as a part of private placement units that are issued upon conversion of working capital loans, if any;

 

   

“public shares” are to shares of our Series A common stock sold as part of the units in this offering (whether they are purchased in this offering or thereafter in the open market);

 

   

“public stockholders” are to the holders of our public shares, including our sponsor, officers and directors to the extent our sponsor, officers or directors purchase public shares, provided that each of their status as a “public stockholder” shall only exist with respect to such public shares;

 

   

“public warrants” are to our warrants sold as part of the units in this offering (whether they are purchased in this offering or thereafter in the open market) and to any private placement warrants sold to our sponsor that are subsequently resold to third parties following the consummation of our partnering transaction;

 

   

“related companies” are to Post, 8th Avenue Food & Provisions, Inc., BellRing Brands, Inc., Lewis & Clark Partners, and their subsidiaries and certain other entities with an executive management team that may from time to time include one or more members of our management team;

 

   

“sponsor” are to PHPC Sponsor, LLC, a Delaware limited liability company and wholly-owned subsidiary of Post;

 

   

“warrants” are to the public warrants, the forward purchase warrants and the private placement warrants; and

 

   

“we,” “us” and “our” are to Post Holdings Partnering Corporation, a Delaware corporation, or, where applicable, members of its management team.

Unless we tell you otherwise, the information in this prospectus assumes that the underwriters will not exercise their over-allotment option and the forfeiture by our sponsor of an aggregate of 1,125,000 founder shares. The information in this prospectus also assumes that neither our sponsor nor any of its affiliates purchases, directly or indirectly, any units sold in this offering.

General

PHPC is a newly incorporated blank check company incorporated as a Delaware corporation, formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar partnering transaction with one or more businesses, which we refer to throughout this prospectus as our “partnering transaction.” To date, our efforts have been limited to organizational activities as well as activities related to this offering. We have no specific business plan other than to enter into a partnering transaction. We have not selected any business with which to partner and have not, nor has anyone on our behalf, engaged in any substantive discussions, directly or indirectly, with any candidate with respect to a partnering transaction with us. Although we may pursue a partnering transaction in any industry, we intend to capitalize on the ability of our management team and our sponsor to partner with a business that has the potential to generate attractive risk-adjusted returns in the consumer packaged goods (“CPG”) industry.

Post and Our Sponsor

An affiliate of Post will act as our sponsor. Post is a consumer packaged goods holding company with a long history of value creation via strategic corporate actions and efficient capital allocation. None of Post’s business will directly be a source of returns for investors in our offering. While we expect Post to provide expertise, it is not obligated to and there is no guarantee it will source a partnering transaction. Post will not receive any additional compensation or finder’s fees from sourcing or providing financing for our partnering transaction. However, as a result of Post’s indirect ownership of our founder shares, private placement units and forward purchase units, it may derive economic benefits from such securities. The amount of such economic benefits to Post cannot yet be determined. Any financing, whether provided by Post or third parties, may negatively impact



 

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the value of our stockholders’ investment in us. See “Risk Factors — Risks Relating to Our Search for, and Consummation of or Inability to Consummate, a Partnering Transaction  —  We may issue notes or other debt securities, or otherwise incur substantial debt, to complete a partnering transaction, which may adversely affect our leverage and financial condition and thus negatively impact the value of our stockholders’ investment in us.” Any financing provided by Post is expected to be on terms, taken as a whole, that would be at least as favorable to us as could be obtained from a third party.

Post generated 335% in total shareholder return since its spin-off from Ralcorp Holdings in 2012 through May 10, 2021 — the highest among Post’s packaged food industry peers, despite being impacted by the pandemic’s effect on its foodservice business. See “Risk Factors — General Risk Factors — Past performance by Post and members of our management team may not be indicative of future performance of an investment in us.” To achieve these results, Post has transformed from a single-product participant in a secularly declining category into a growing, diversified enterprise across multiple categories.

 

 

LOGO

 

1.

Fiscal year ended 9/30/2011. Reflects Net Sales for Post.

2.

Fiscal year ended 9/30/2020. Reflects Net Sales for Post and its equity investments, comprised of Post consolidated Net Sales of $5.7bn, which includes 100% of BellRing Brands, Inc. (“BellRing”), plus $924 million in Net Sales for 8th Avenue Food & Provisions, Inc. (“8th Avenue”).

This transformation was accomplished by utilizing the following strategic guiding principles:

 

   

Long-tenured management team. We believe Post has the longest-tenured management team among its publicly-traded packaged food industry peers, with its Chief Executive Officer, Chief Financial Officer, and General Counsel having joined Post in various capacities in 2011. This continuity and cohesive team structure has created a strong, collaborative culture with significant accumulated institutional knowledge and transaction expertise.

 

   

De-centralized operating structure. Post’s corporate management recognizes that the “operator” skill set is often different than the “capital allocation” or mergers and acquisitions (“M&A”) skill set. As



 

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such, Post retains an operationally-focused management team to run each of its business units and centralizes the capital allocation function. This structure allows each of Post’s business units to achieve operational excellence and be agile and nimble, while remaining autonomous from, but accountable to, the corporate management team at Post. This also enables corporate management to focus on efficient capital allocation and accretive M&A and structured transactions on a holistic basis across the portfolio.

 

   

Creative and pragmatic approach to M&A. Post’s corporate management possesses a deep M&A proficiency, employing leverage and transaction structure to enhance returns. Unlike some corporations with M&A in their DNA, Post is not solely an asset accumulator, but rather seeks to monetize assets opportunistically to unlock shareholder value.

 

   

Broad access to deal flow. Given Post’s extensive M&A track-record and heavy use of the capital markets, corporate management has regular direct contact with various management teams, board members, and sell-side bankers. The Post team is well suited to transact in situations that require creativity, complexity, or structuring expertise.

 

   

Appropriate use of leverage to enhance equity returns. Post’s corporate management actively manages its balance sheet and has a sophisticated understanding of the capital markets. Since its spin-off, Post has undertaken over 30 capital markets transactions and maintained leverage in a range of 4.0x to 6.0x for most of that time.

Post intends to apply these primary strategic principles to capitalize on the substantial deal flow and opportunity that management sees across the consumer sector. As such, we are seeking to partner with a business in an attractive category, with growth potential organically or through consolidation opportunities, margin upside potential, portfolio optionality, and an experienced management team. Post management believes that PHPC’s formation, and its position outside of the immediate Post corporate structure, greatly expands the potential universe of targets and target financial profiles that could potentially generate attractive returns for shareholders. We are open to assessing high-growth partners, yet prioritize other criteria, as outlined in Our Investment Criteria. The partnering transaction would provide the candidate business an efficient path to become public, backed by Post’s experience managing consumer products businesses, allocating capital, and building a foundation for future acquisitions and value creation. As a long-term partner, Post will enhance the potential candidate’s ability to generate risk-adjusted returns for stockholders.

Capitalizing on Post’s History

Post’s history is rooted in M&A as a lever for value-creation against an ever-evolving CPG category backdrop.

Post’s legacy dates back to 1895, when C. W. Post incorporated Postum Cereals Company and developed one of the first ready-to-eat (“RTE”) cereals, Grape-Nuts, in 1897. The company became the first packaged food consolidator, as Postum Cereals Company acquired over a dozen companies between 1925 and 1929, expanding its product line to more than 60 products and eventually changing its name to General Foods Corporation.

Philip Morris Companies (“Philip Morris”) acquired the business in 1985 and subsequently merged the business with Kraft Foods Inc. (“Kraft”) in 1989. In 2007, Kraft was separated from Philip Morris, and in 2008, the Post cereals business was split-off from Kraft and combined with Ralcorp Holdings (“Ralcorp”), a manufacturer of private label packaged food. Ultimately, Post was spun-off from Ralcorp and became a separate, standalone company, effective February 3, 2012.

Post’s character as an early food industry consolidator re-emerged when it once again became a standalone public company. A component of management’s initial mandate was to consolidate the RTE cereal category. At the same time, the category began to experience a more pronounced shift in consumption, after



 

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decades of low-to-mid single digit growth. Consumers began to exhibit a preference for low-carbohydrate diets, natural ingredients, or non-processed foods, and were substituting protein-based options for cereals. In the face of enhanced competition in a growth-constrained environment, Post developed a diversification strategy that prioritized performance stability and free cash flow generation. Management recognized early and positioned its portfolio accordingly around long-term consumer trends. To diversify its cereal offerings, some of management’s first acquisitions were focused on building a foothold in protein products relevant to the breakfast daypart, both for at-home and on-the-go eating occasions. The acquisitions of Michael Foods and Premier Protein allowed Post to unlock desired strategic diversity. Post later was able to translate those early actions into future value creation when it carved out BellRing, which held Post’s active nutrition businesses including Premier Protein, highlighting that Post is not an asset accumulator, and instead seeks to crystallize value when possible to maximize long-term returns for shareholders. In total, Post has acquired 16 businesses since 2012, growing net sales nearly six times and Adjusted EBITDA over five times.

 

 

LOGO

 

1.

Post’s fiscal year end is September 30.

Central to Post’s value creation strategy is the simple notion of accessing capital at a reasonable cost and investing the capital in consumer assets with appropriate risk-adjusted return potential. Over its history, Post has been an active issuer in different capital markets including high-yield debt (both term loans and bonds), convertible preferred equity, mandatory convertible equity, and common equity. In addition, Post has also partnered with private equity capital providers (via its formation of 8th Avenue), as well as the public equity markets (via its BellRing carve-out initial public offering, “IPO”). Post management views the market for blank check companies as a natural extension of this strategy of leveraging its capital base through creative financial structures.

Post management believes that the current combination of macro, market, and contextual opportunity have combined to make the present moment the right time to explore value-accretive transactions where Post can apply its core M&A skill set outside of the immediate Post corporate structure. Both Post shareholders and PHPC stockholders have the opportunity to benefit from the formation of PHPC and the complementary, aligned objectives that will guide its pursuit of value creation.

Differentiated Sponsor

Our sponsor is a wholly-owned subsidiary of Post. Post operates as a holding company for six distinct businesses today. Four of the businesses are wholly-owned, including Post Consumer Brands, Weetabix, Foodservice, and Refrigerated Retail. Two of the businesses are held as investments in non-wholly owned subsidiaries. BellRing is Post’s historical active nutrition business. Post completed an IPO of a minority interest in BellRing in October 2019, monetizing a 28.8% stake in the business while retaining 71.2% for upside in the public markets. 8th Avenue is Post’s historical private brand business, which Post capitalized separately with



 

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investments from third parties in October 2018, retaining a 60.5% stake for future upside potential and optionality. Post is familiar with operating as a public company with a complex organizational structure, making it an ideal partner to PHPC.

Post’s operating model with its existing subsidiaries is similar to the expected relationship with our ultimate partner, making Post uniquely qualified to sponsor our business. Each of Post’s six businesses has its own management and operating structure, while capital allocation and M&A are centrally-managed by Post. The subsidiary businesses are unified, but not operationally integrated, by select shared services across the portfolio related to food safety, regulatory and compliance oversight; treasury; finance; investor relations; tax; select information technology; human resources; and corporate legal. De-centralization allows each business to flexibly and quickly respond to market movements, and enables them to be separated in the future without significant disintegration effects or stranded costs.

Stemming from its own strategic principles, Post intends to provide the following support to the ultimate partner as sponsor:

 

   

Consumer products industry expertise and relationships. Post’s management team has a collective 100+ years of industry experience in consumer products. Rob Vitale additionally serves on the board of directors of Energizer Holdings, Inc., a publicly-traded company operating in the household products category. The management team’s relationships with business managers and operators across all corporate functions, as well as among the financial communities that invest in CPG businesses, provides the partnering candidate access to best-in-class leadership and strategic acumen.

 

   

M&A experience and capabilities, including access to deal flow. Post has completed 16 acquisitions since 2012, building the relationships that place it at the nexus of deal flow between strategic and sponsor transactions, while developing the resources and experience to move quickly and decisively. Since future M&A opportunity is a major consideration in our selection of an ultimate partner, Post would be a valuable resource.

 

 

LOGO

 

1.

Transformative acquisitions are defined as transactions with a purchase price >$1,000 million.

 

   

Tax and structuring expertise and resources. Post’s own corporate organization and transaction experience provide administrative resources and third party relationships that will help optimize corporate and deal structure.

 

   

Capitalization formation and ongoing balance sheet management. Post already provides treasury services to its business units as well as to its affiliate investments under master services agreements, so an extension of its guidance to our business would be a natural step to leverage its expertise. Post takes a thoughtful, appropriately aggressive, and proactive approach to balance sheet management, having flexed up and down leverage for acquisitions since its spin-off.

 

   

Experienced manager of a public company. Post management has deep expertise in leading a public company. Post intends to leverage its experience to support the partnering candidate as it enters the public markets for the first time.



 

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Potential shared services. While we will not be integrated into Post as a wholly-owned subsidiary, we expect to have a similar relationship to the sponsor as Post’s current subsidiaries. Post and management will take into account potential revenue and cost synergies that might be available based on common capabilities, customers, operations, or distribution channels in evaluating potential partnering opportunities; Post may be able to offer certain administrative services to leverage costs across a larger portfolio.

Post aims to help build a foundation for our long-term success, and will lend its expertise, resources, and guidance, backed by its initial financial commitment, to start our journey as a public company.

Immediately prior to this proposed public offering our sponsor owned 100% of our capital stock, consisting of shares of Series F common stock which will automatically convert at the time of our partnering transaction, or earlier at the option of the holder, into shares of Series B common stock on a one-for-one basis. In connection with our partnering transaction, our sponsor has agreed to purchase 10,000,000 forward purchase units consisting of one share of Series B common stock and one-third of a forward purchase warrant. Following our partnering transaction, each share of Series B common stock entitles the holder to ten votes per share which differs from the typical capital structure of many other special purpose acquisition companies. Assuming that the underwriters do not exercise their over-allotment option, that our sponsor forfeits an aggregate of 1,125,000 founder shares, that there are 38,500,000 shares of our common stock outstanding after this offering, that the issuance of 10,000,000 forward purchase units to our sponsor pursuant to the forward purchase agreement are the only additional equity securities issued in connection with our partnering transaction and that our sponsor, or an affiliate of our sponsor, does not purchase any public units in this offering, our sponsor is expected to own approximately 38% of the outstanding shares of our common stock and approximately 85% of the voting power of our outstanding common stock immediately following the closing of our partnering transaction. We anticipate that our sponsor’s voting power and equity ownership may be substantially diluted in connection with our partnering transaction, either from the issuance of new shares of common stock in exchange for the capital stock of the target, the issuance of our capital stock to third party investors providing additional funding to our company in connection with the partnering transaction, or both. However, until such time, our sponsor and Post will have the ability to exercise control over our affairs, policies and operations, such as the appointment of management, the issuance of additional shares of our common stock or other securities, the payment of dividends on our common stock, the incurrence of debt by us and over matters requiring stockholder approval, including the election of directors, amendments of our organizational documents and any change of control of our company. Our sponsor may have interests that differ from yours and may vote in a way with which you disagree and which may be adverse to your interests.

Post’s Investment Track Record Is Highly Relevant Across the Consumer Landscape

When Post became a standalone public company in 2012, it was a single-category business operating in the highly-competitive RTE cereal category with concentrated distribution channels in food, drug, mass, and club, offering only center-of-store products. Since then, Post has transformed into a dynamic, multi-category food company with diversified income streams and portfolio optionality. Post’s experience is relevant across the CPG industry as many categories face similar dynamics.

A core element of Post’s strategy relates to empowering management teams to operate toward a model that prioritizes top-line stability, margin enhancement, free cash flow generation, and agile responses to consumer preferences. The de-centralized model is intentionally designed to increase each individual unit’s flexibility, accountability, and entrepreneurship. Post’s performance demonstrates management’s ability to effectively incentivize and guide capital allocation decisions without crafting or developing each unit’s specific operating or go-to-market strategy.



 

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Layered on top of organic growth is a discerning approach to inorganic expansion. Management has acquired 16 companies ranging from sub-$100 million to ~$2.45 billion in size since 2012. Despite the broad diversity in size, category, geography, and other business characteristics, Post’s strategy has been consistent. That is, to build leadership positions in categories with attractive dynamics and to diversify the total portfolio by expanding into new categories and channels, while addressing secular themes in food to insulate the portfolio from potential dietary, lifestyle or economic shifts. Post utilizes tax benefits (as appropriate and available) and aims to extract synergies where possible, using integration expertise to buy down the effective purchase multiple and enhance value creation. However, given Post’s de-centralized operating structure and diversified portfolio approach, synergies are not a pre-requisite for pursuing an acquisition that makes strategic sense or unlocks long-term strategic value.

Adherence to its upfront acquisition criteria, combined with effective integration that does not prioritize extreme cost-focused synergy extraction, has enhanced the return of Post’s portfolio and resulted in a strong track record of nearly all M&A targets performing ahead of the acquisition case under Post’s stewardship.

Post’s results with its own business are a clear indicator of its track record. Post has driven attractive total returns for its shareholders and has delivered returns in excess of its peers since its formation.

 

 

LOGO

Post has also monetized assets opportunistically, using structured M&A to generate return while simultaneously retaining potential future upside. On October 1, 2018, Post completed an independent capitalization of 8th Avenue, providing gross proceeds to Post of $875 million while allowing Post to retain 60.5% in common equity post-closing. 8th Avenue is now a deconsolidated equity investment that is owned jointly with third party investors. On October 21, 2019, BellRing completed an initial public offering, providing net proceeds to Post of $524 million while allowing Post to retain a 71.2% ownership stake. BellRing remains fully-consolidated in Post’s financial results. Based on its current valuation in the public equity markets as of December 31, 2020, BellRing has achieved a more than six times increase in the entity’s enterprise value since the businesses were acquired and combined by Post in 2014. Post is therefore positioned to continue to realize



 

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value from growth in these investments, while still having recovered nearly all of its initial cash investment in both assets, providing ongoing strategic and portfolio optionality.

 

 

LOGO

 

Note: Entry enterprise value represents the cumulative headline purchase price paid for the assets that comprise the ultimate company

 

1.

Current market data per FactSet as of 12/31/2020. Compound annual growth rate (“CAGR”) is calculated between the closing date of the final asset acquired at entry through current market data as of 12/31/2020.

 

2.

2018 enterprise value per Lender Presentation published in connection with the 8th Avenue capitalization in October 2018.

As the sole member of our sponsor, Post will be providing us with differentiated expertise as a result of its track record of identifying high potential businesses as well as its differentiated access to a deep network of investors worldwide. Additionally, Post’s franchise strength brings capital, credibility, and institutional know-how to execute the partnering transaction quickly.

Our Business Strategy

Our strategy is to identify, partner with and, after our partnering transaction, fundamentally enhance a company in the public markets. We intend to partner with a company in the consumer products industry that complements the experience and expertise of our management team and is a business to which we believe we can add value.

Our management team is deeply familiar with the trends of our target industries and brings an investing approach that offers multiple competitive advantages in sourcing, evaluating and executing on opportunities, including:

 

   

Long-term investment horizon. We take a long-term, strategic view when evaluating our various operating businesses and are less concerned with seeking profits based on near-term volatility or temporary market disruptions.

 

   

Attractive risk-adjusted returns. We believe we can create significant value through efficient capital allocation, appropriately aggressive balance sheet management and a business model that focuses on outsized growth prospects and free cash flow generation.

 

   

Sophisticated transaction structuring to enhance value. We will be creative in our deal structures in order to maximize value creation for our prospective investors and shareholders.

 

   

Differentiated partner sourcing across consumer sectors. Post management is at the nexus of deal flow for both strategics and sponsors. We believe that the capabilities and connections of our management team, in combination with those of Post, will provide us with a differentiated pipeline of



 

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partnering opportunities that would be difficult for other participants in the M&A markets to replicate.

 

   

Speed and agility to consummate a partnering transaction. Our team has proven managerial expertise in deal execution having previously acquired and divested a number of businesses. We believe that we will be able to conduct candidate sourcing, screening, diligence and execution thoughtfully and efficiently as opportunities arise.

Our Investment Criteria

We have identified general criteria and guidelines for selecting an appropriate target, which we believe are important in evaluating prospective partnering businesses:

 

   

Fundamental business value. We look for businesses with consumer utility, strong brand awareness, and unique value propositions anchored by effective distribution and solid household penetration. We are also looking for businesses that are future-forward and disruptive in the way that they operate and/or the value proposition that they offer to consumers.

 

   

Attractive categories within the consumer products industry broadly. Categories where competitive dynamics remain supportive of growth opportunities, there are pockets of growth or pent-up demand, adjacency opportunities, multiple routes to market, or consolidation potential.

 

   

Well-established strategic moat. Entrenched, defensible leadership positions in core growth categories.

 

   

Strong margin potential. Attractive gross margin and adjusted EBITDA margin performance with identifiable opportunities for organic growth and operating leverage through increased scale.

 

   

Strong free cash flow capability. Limited capital expenditure needs and modest working capital requirements to drive strong cash generation.

 

   

Portfolio optionality. Our goal is to build multiple paths to value creation, either with in-bound or out-bound M&A. We favor businesses with platform opportunities, where the structure of a candidate enables building or disaggregating consumer products businesses over time.

 

   

Experienced management team. We will seek to partner with deep, experienced and talented management teams to lead the business and have responsibility for driving operating results.

 

   

Desire to become a standalone public company. We will seek to partner with a business that has a desire to become a standalone public company and retain its economic autonomy.

These criteria and guidelines are not intended to be exhaustive. Further, we intend to use these criteria and guidelines in evaluating acquisition opportunities, but we may decide to enter into our partnering transaction with a candidate that does not meet these criteria and guidelines. Any evaluation relating to the merits of a particular partnering transaction may be based, to the extent relevant, on these general criteria and guidelines, as well as other considerations, factors and criteria deemed relevant by our management in effecting our partnering transaction consistent with our business objectives. In the event that we decide to enter into our partnering transaction with a candidate that does not meet the above criteria and guidelines, we will disclose that the candidate does not meet the above criteria in our shareholder communications related to our partnering transaction, which, as discussed in this prospectus, would be in the form of tender offer documents or proxy solicitation materials that we would file with the Securities and Exchange Commission (the “SEC”).



 

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Our Competitive Strengths

The sourcing, valuation, diligence, and execution capabilities of our management team and Post will provide us with a significant pipeline of opportunities from which to evaluate and select a business that will benefit from our expertise. Our competitive strengths include the following core principles by which we govern ourselves:

 

   

Long-term orientation. Closing our partnering transaction is important but we are intensely focused on long-term share price performance and the interests of common stockholders post-closing.

 

   

Partnership model. We are not reliant on finding a company which needs operational improvement, cost cutting or replacing senior management. We are not activist investors. We are not buyout specialists. We are not short-term promoters. We have a long-term partnership mentality and collaborative investment model which is grounded and driven by our belief in fairness and alignment of interests.

 

   

Committed co-investment capital. Post intends to utilize its balance sheet to co-invest alongside public market investors. We believe that our initial committed capital in conjunction with our aligned economic interests will allow us to partner with a high quality company.

 

   

Continued ownership. We are focused on partnering with management teams who are focused on long-term compounded growth and existing owners who may want to continue ownership in a high quality asset but need to provide liquidity to existing stockholders and/or limited partners. PHPC provides an ability to transition ownership to the public market, which is deeper and more liquid than the private market, in a disciplined fashion and for existing owners to share in the future upside potential over the long term.

 

   

Deep experience of our sponsor and our management team. We believe that our ability to leverage the operational experience of Post, which has completed over 16 acquisitions since 2012 across a wide spectrum of size, subsector, and ownership structure, will provide us with a distinct advantage in being able to source, diligence, and add value post-closing of the partnering transaction.

 

   

Differentiated sourcing channels with leading industry, private equity, and venture capital relationships. Our management team and sponsor believe the capabilities and connections associated with our management team will provide us with a differentiated pipeline of partnering opportunities that would be difficult for other participants in the market to replicate. We expect these sourcing capabilities will be further bolstered by our management team’s reputation and deep industry, private equity, and venture capital relationships.

 

   

Investing experience. Our management team and sponsor believe that our management’s track record of identifying and sourcing transactions in the consumer sector positions us well to appropriately evaluate potential partnering candidates and select one that will be well received by the public markets and our stockholders.

 

   

Post-closing value-add capabilities and requirements. Our management team and sponsor believe that our combined expertise and reputation will allow us to drive meaningful value post-closing with the partner company. If our value-add is not readily identifiable, then we will choose not to execute that partnering transaction.

We believe our ability to complete a partnering transaction will be enhanced by our having entered into a forward purchase agreement with our sponsor pursuant to which our sponsor will commit that it will purchase from us up to 10,000,000 forward purchase units, each consisting of one forward purchase share and one-third of one forward purchase warrant, for $10.00 per forward purchase unit, in an aggregate amount of up to $100,000,000, in a private placement that will close concurrently with the closing of our partnering transaction.



 

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The proceeds from the sale of these forward purchase units, together with the amounts available to us from the trust account (after giving effect to any redemptions of public shares) and any other equity or debt financing obtained by us in connection with the partnering transaction, will be used to satisfy the cash requirements of the partnering transaction, including funding the purchase price and paying expenses and retaining specified amounts to be used by the post-partnering transaction company for working capital or other purposes. To the extent that the amounts available from the trust account and other financing are sufficient for such cash requirements, our sponsor may purchase less than 10,000,000 forward purchase units. The terms of the forward purchase warrants will generally be identical to the terms of the redeemable warrants included in the units being issued in this offering.

Our Process

In evaluating a prospective partnering candidate, we expect to conduct a thorough due diligence review which may encompass, among other things, meetings with incumbent management and employees and inspection of physical assets, as well as a review of financial, operational, legal and other information that will be made available to us. We will employ third party diligence to support our internal efforts where appropriate.

We are not prohibited from pursuing a partnering transaction with a business that is owned by our sponsor or any of the related companies, or making the acquisition through a joint venture or other form of shared ownership with any of them. In the event we seek to complete our partnering transaction with a target that is owned by one of the related companies, a committee of our independent and disinterested directors will obtain an opinion from an independent investment banking firm or another accounting, valuation or appraisal firm that such partnering transaction is fair to our company from a financial point of view. However, we are not required to obtain such an opinion in any other context.

Members of our management team may directly or indirectly own our securities following this offering, and accordingly, they may have a conflict of interest in determining whether a particular candidate is an appropriate business with which to effectuate our partnering transaction. Further, each of our officers and directors may have a conflict of interest with respect to evaluating a particular partnering transaction if the retention or resignation of any such officers and directors was included by a candidate business as a condition to any agreement with respect to our partnering transaction.

As described under “Management — Conflicts of Interest,” each of our officers and directors has, and any of them in the future may have, additional fiduciary or contractual obligations to one or more other entities, including, in certain cases, to Post, pursuant to which such officer or director may be required to present a partnering transaction opportunity to such entities before he or she presents such opportunity to us. Also, none of our sponsor or any of our directors and officers is prohibited from sponsoring, investing or otherwise becoming involved with any other blank check companies, including in connection with their partnering transactions. Accordingly, if any of our officers or directors becomes aware of a partnering transaction opportunity to which he or she has then-current fiduciary or contractual obligations to present such opportunity to another entity, including, in certain cases, to Post, he or she may only present such opportunity to us if such other entity, including, in certain cases, to Post, rejects the opportunity. Our amended and restated certificate of incorporation will provide that we renounce our interest in any corporate opportunity offered to any director or officer unless such opportunity is expressly offered to such person solely in his or her capacity as a director or officer of our company, such opportunity is one we are legally and contractually permitted to undertake and would otherwise be reasonable for us to pursue, and such person has no fiduciary or contractual obligation to present the opportunity to any other person or entity, including, in certain cases, to Post. We do not believe, however, that the fiduciary, contractual or other obligations or duties of our officers or directors will materially affect our ability to complete our partnering transaction. We believe that potential conflicts with



 

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Post are naturally mitigated by the differing nature of the investments Post would typically consider most synergistic to the existing Post businesses and the types of transactions we expect to find most attractive based, in part, on transaction size and ability to operate as a standalone public company. Notwithstanding our belief regarding natural mitigation, Post and its subsidiaries may compete with us for acquisition opportunities that fall within Post’s investment objectives or strategies. A decision by Post to pursue an opportunity would preclude us from pursuing it and could have a negative impact on our ability to complete our partnering transaction.

Our sponsor has also indicated that it or one of its affiliates has an interest in purchasing, directly or indirectly, up to 4,000,000 units in this offering at the public offering price. The underwriters will not receive any underwriting discounts or commissions (including, without limitation, deferred underwriting commissions) on public units purchased by our sponsor or its affiliate. However, indications of interest are not binding agreements or commitments to purchase and our sponsor or its affiliate may decide not to purchase any public units in this offering. In addition, the underwriters could determine to sell fewer public units to our sponsor or its affiliate than it indicated an interest in purchasing or could determine not to sell any public units to our sponsor or its affiliate.

You should not rely on the historical record or performance of Post or our management team as indicative of the future performance of an investment in us or the returns we will, or are likely to, generate going forward. See “Risk Factors — General Risk Factors — Past performance by Post and members of our management team may not be indicative of future performance of an investment in us.”

Our Management Team

Our experienced management team is well suited to identify and execute an attractive partnering transaction for our shareholders. Our management team is led by Robert V. Vitale as President and Chief Investment Officer, Bradly A. Harper as Chief Financial Officer, Jeff A. Zadoks as a member of our board of directors, and Jim Dwyer, Jennifer Kuperman, Dave Peacock and David Taiclet who will become members of our board of directors upon the completion of this offering.

 

   

Robert V. Vitale – President and Chief Investment Officer. Mr. Vitale has served as our President and Chief Investment Officer since January 2021. Mr. Vitale has also served as President and Chief Executive Officer and a member of the board of directors of Post since November 2014. He joined Post during the time of its spinoff from Ralcorp and was Post’s Chief Financial Officer from 2011 to 2014. Mr. Vitale is the Executive Chairman of BellRing, of which Post is the majority stockholder. Mr. Vitale previously served as President and Chief Executive Officer of AHM Financial Group, LLC, a diversified provider of insurance brokerage and wealth management services, from 2006 to 2011. Prior to AHM Financial Group, LLC, Mr. Vitale was a Partner of Westgate Equity Partners, LLC, a consumer-oriented private equity firm, and started his career at Boatmen’s Bancshares and KPMG. Mr. Vitale also serves on the board of directors of 8th Avenue and Energizer Holdings, Inc.

 

   

Bradly A. Harper – Chief Financial Officer. Mr. Harper has served as our Chief Financial Officer since January 2021. Mr. Harper has also served as Senior Vice President, Chief Accounting Officer and Principal Accounting Officer of Post since December 1, 2018. Mr. Harper served as the Vice President and Corporate Controller of Post from November 2014 to December 2018 and the Director of Corporate Accounting and Reporting of Post from December 2011 until November 2014. Prior to joining Post, Mr. Harper served as Assistant Controller of Savvis, Inc., a global leader in cloud infrastructure and hosted IT solutions for enterprises.

 

   

Jeff A. Zadoks – Director. Mr. Zadoks has served as a member of our board of directors since January 2021. Mr. Zadoks has also served as Executive Vice President of Post since November 2017 and Chief Financial Officer of Post since 2014. He joined Post in 2011 as Corporate Controller. Mr. Zadoks



 

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previously served as Senior Vice President and Chief Accounting Officer of RehabCare Group, a national rehabilitation services company. Prior to RehabCare, Mr. Zadoks was the Corporate Controller at MEMC Electronic Materials (SunEdison), and started his career in the audit practice at KPMG.

 

   

Jim Dwyer – Director. Mr. Dwyer has served as a member of our board of directors since May 25, 2021. Mr. Dwyer has been the Chairman of the board of directors of 8th Avenue since May 2020 and served as its Chief Executive Officer from January 2018 until May 2020. Mr. Dwyer served as the President and CEO of Michael Foods, an operating company of Post, from October 2009 until February 2018.

 

   

Jennifer Kuperman – Director. Ms. Kuperman has served as a member of our board of directors since May 25, 2021. Ms. Kuperman was Head of International Corporate Affairs at Alibaba Group Holding Limited, a multinational conglomerate holding company specializing in eCommerce, retail, internet and technology, from April 2016 until January 2021 and served as Vice President, International Corporate Affairs at Alibaba Group Holding Limited from August 2014 to April 2016. Prior to joining Alibaba Group Holding Limited, Ms. Kuperman was Senior Vice President of Corporate Brand and Reputation at Visa Inc., a global payments technology company, from April 2013 to August 2014 and Chief of Staff, Office of the Chairman and Chief Executive Officer at Visa Inc. from August 2010 to April 2013. Ms. Kuperman also served as Head of Global Corporate Communications and Citizenship at Visa Inc. from August 2008 to July 2010 and Head of Employee and Client Communication at Visa Inc. from August 2004 to June 2008. Ms. Kuperman serves on the board of directors of Post and on the board of directors of BellRing. Ms. Kuperman also serves on the board of directors of CoachArt, a nonprofit organization that provides arts and recreational opportunities to youth with chronic and life-threatening illnesses.

 

   

Dave Peacock – Director. Mr. Peacock has served as a member of our board of directors since May 25, 2021. Mr. Peacock has served as President and Chief Operating Officer of Schnucks Markets since May 2017. Prior to joining Schnucks’ management team, he was on the board of advisors for the firm as well as founder and Chairman of Vitaligent, LLC, a multi-unit restaurant franchisee. Mr. Peacock served as Senior Advisor to Anheuser-Busch from February 2012 until June 2012, President of Anheuser-Busch from November 2008 until January 2012, Vice President of Marketing at Anheuser-Busch from October 2007 until November 2008, and Vice President of Business Operations, Anheuser-Busch Incorporated from December 2004 until September 2007.

 

   

David L. Taiclet – Director. Mr. Taiclet has served as a member of our board of directors since May 25, 2021. Mr. Taiclet has served as General Partner and Managing Director of the Lewis & Clark Partners AgriFood Investment Group since November 2018. Mr. Taiclet served in several leadership positions for 1800Flowers.com from May 2006 until May 2017, as CEO of Fannie May Confections Brands from May 2006 until October 2008 and, ultimately, as President of the Gourmet Food Group from October 2008 until May 2017. Mr. Taiclet held numerous positions in the Strategy and Business Development Group of Cargill, Inc., an international marketer, processor and distributor of food, financial and industrial products.

Partnering Transaction

NYSE listing rules require that our partnering transaction must be with one or more target businesses that have an aggregate fair market value equal to at least 80% of the value of the trust account (excluding any deferred underwriting commissions and taxes payable on interest earned on the trust account) at the time of our signing a definitive agreement in connection with our partnering transaction. We refer to this as the 80% of net assets test. If our board of directors is not able to independently determine the fair market value of the target business or businesses, we will obtain an opinion from an independent investment banking firm or another independent entity that commonly renders valuation opinions with respect to the satisfaction of such criteria. We do not currently intend to purchase multiple businesses in unrelated industries in conjunction with our partnering transaction, although there is no assurance that will be the case.



 

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We anticipate structuring our partnering transaction so that the post-transaction company in which our public stockholders own or acquire shares will own or acquire 100% of the outstanding equity interests or assets of the target business or businesses. We may, however, structure our partnering transaction such that the post-transaction company owns or acquires less than 100% of such interests or assets of the target business in order to meet certain objectives of the target management team or stockholders or for other reasons, but we will only complete such partnering transaction if the post-transaction company owns or acquires 50% or more of the outstanding voting power of the outstanding capital stock of the target or otherwise acquires an interest in the target business sufficient for it not to be required to register as an investment company under the Investment Company Act of 1940, as amended (the “Investment Company Act”). Even if the post-transaction company owns or acquires 50% or more of the outstanding voting power of the outstanding capital stock of the target, our stockholders prior to our partnering transaction may collectively own a minority interest (economic and/or voting) in the post-partnering transaction company, depending on, among other things, valuations ascribed to the target and us in our partnering transaction. For example, we could pursue a transaction in which we issue a substantial number of new shares of common stock in exchange for all of the outstanding capital stock, shares or other equity interests of a target business, issue a substantial number of new shares to third parties in connection with financing our partnering transaction or our sponsor could convert some or all of its Series B common stock into Series A common stock. In such cases, we would acquire a 100% interest in the target. However, as a result of the issuance of a substantial number of new shares of common stock or other changes to our capital structure, our stockholders immediately prior to such transaction (including our sponsor) could own less than a majority of our outstanding shares of common stock subsequent to such transaction and therefore a minority interest (economic and/or voting) in the post-transaction company. If less than 100% of the outstanding equity interests or assets of a target business or businesses are owned or acquired by the post-transaction company, the portion of such business or businesses that is owned or acquired by us is what will be valued for purposes of the 80% of net assets test. If our partnering transaction involves more than one target business, the 80% of net assets test will be based on the aggregate value of all of the target businesses. Notwithstanding the foregoing, if we are not then listed on the NYSE for whatever reason, we would no longer be required to meet the foregoing 80% of net assets test.

Prior to the effectiveness of the registration statement of which this prospectus forms a part, we filed a Registration Statement on Form 8-A with the SEC to voluntarily register our securities under Section 12 of the Exchange Act. As a result, we are subject to the rules and regulations promulgated under the Exchange Act. We have no current intention of filing a Form 15 to suspend our reporting or other obligations under the Exchange Act prior or subsequent to the completion of our partnering transaction.

Corporate Information

We are an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended (the “Securities Act”), as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). As such, we are eligible to take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not “emerging growth companies” including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”), reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding a non-binding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. If some investors find our securities less attractive as a result, there may be a less active trading market for our securities and the prices of our securities may be more volatile.

In addition, Section 107 of the JOBS Act also provides that an “emerging growth company” can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an “emerging growth company” can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We intend to take advantage of the benefits of this extended transition period.



 

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We will remain an emerging growth company until the earlier of: (1) the last day of the fiscal year (a) following the fifth anniversary of the completion of this offering, (b) in which we have total annual gross revenue of at least $1.07 billion, or (c) in which we are deemed to be a large accelerated filer, which means the market value of our common stock that is held by non-affiliates exceeds $700 million as of the end of that fiscal year’s second fiscal quarter; and (2) the date on which we have issued more than $1.00 billion in non-convertible debt securities during the prior three-year period. References herein to “emerging growth company” have the meaning associated with it in the JOBS Act.

Our executive offices are located at 2503 S. Hanley Road, St. Louis, Missouri 63144 and our telephone number is (314) 644-7600. Upon completion of this offering, our corporate website address will be www.postpspc.com. Our website and the information contained on, or that can be accessed through, the website is not deemed to be incorporated by reference in, and is not considered part of, this prospectus or the registration statement of which this prospectus forms a part. You should not rely on any such information in making your decision whether to invest in our securities.



 

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The Offering

In making your decision whether to invest in our securities, you should take into account not only the identity of our sponsor and the experience of our management team, but also the special risks we face as a blank check company and the fact that this offering is not being conducted in compliance with Rule 419 promulgated under the Securities Act. You will not be entitled to protections normally afforded to investors in Rule 419 blank check offerings. You should carefully consider these and the other risks set forth in the section below entitled “Risk Factors” in this prospectus.

 

Securities offered

30,000,000 units (or 34,500,000 units if the underwriters’ over-allotment option is exercised in full), at $10.00 per unit, each unit consisting of:

 

   

one share of Series A common stock; and

 

   

one-third of one redeemable warrant to purchase one share of Series A common stock.

 

Proposed NYSE symbols

Units: “PSPC.U”

 

  Series A Common Stock: “PSPC”

 

  Warrants: “PSPC WS”

 

Trading commencement and separation of Series A common stock and warrants

The units will begin trading on or promptly after the date of this prospectus. The Series A common stock and warrants constituting the units will begin separate trading on the 52nd day following the date of this prospectus, unless Evercore Group L.L.C. and Barclays Capital Inc. inform us of their 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. Once the shares of Series A common stock and warrants commence separate trading, holders will have the option to continue to hold units or separate their units into the component securities. Holders will need to have their brokers contact our transfer agent in order to separate the units into shares of Series A common stock and warrants. No fractional warrants will be issued upon separation of the units and only whole warrants will trade. Accordingly, unless you are separating a multiple of three units, the number of warrants issuable to you upon separation of the units will be rounded down to the nearest whole number of warrants.

 

  Additionally, the units will automatically separate into their component parts and will not be traded after completion of our partnering transaction.

 

Separate trading of the Series A common stock and warrants is prohibited until we have filed a Current Report on Form 8-K

In no event will the Series A common stock and warrants be traded separately until we have filed with the SEC a Current Report on Form 8-K,



 

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which includes an audited balance sheet of our company reflecting our receipt of the gross proceeds at the closing of this offering. We will file the Current Report on Form 8-K promptly after the closing of this offering. If the underwriters’ over-allotment option 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’ over-allotment option.

Units:

 

Number outstanding before this offering

0

 

Number of private placement units to be sold in a private placement simultaneously with this offering

1,000,000(1)

 

Number outstanding after this offering and the sale of the private placement units

31,000,000(1)

Common stock:

 

Number outstanding before this offering

8,625,000(2)(4)

 

Number outstanding after this offering

38,500,000(1)(3)(4)

Warrants:

 

Number of private placement warrants to be sold in a private placement simultaneously with this offering

333,333(1)

 

Number of warrants to be outstanding after this offering and the sale of private placement units

10,333,333(1)

 

(1) 

Assumes no exercise of the underwriters’ over-allotment option and the forfeiture by our sponsor of an aggregate of 1,125,000 founder shares.

(2) 

Consists solely of founder shares and includes up to an aggregate of 1,125,000 founder shares that are subject to forfeiture by our sponsor depending on the extent to which the underwriters’ over-allotment option is exercised.

(3) 

Includes 30,000,000 public shares, 7,500,000 founder shares and 1,000,000 private placement shares. No shares of Series B common stock or Series C common stock will be issued or outstanding immediately after the completion of this offering.

(4) 

Founder shares are classified as shares of Series F common stock. Shares of Series F common stock will automatically convert into shares of Series B common stock at the time of our partnering transaction, or earlier at the option of the holder, on a one-for-one basis, as described below adjacent to the caption “Founder shares conversion.” Prior to and following our partnering transaction, each share of Series B common stock is convertible, at the option of the holder, into one share of our Series A common stock. No shares of Series B common stock or Series C common stock will be issued or outstanding immediately after the completion of this offering.



 

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Exercisability

Each whole warrant entitles the holder thereof to purchase one share of our Series A common stock, subject to adjustment as provided herein, and only whole warrants are exercisable. No fractional warrants will be issued upon separation of the units and only whole warrants will trade.

 

  We structured each unit to contain one-third of one warrant, with each whole warrant exercisable for one share of Series A common stock, as compared to units issued by some other similar blank check companies which contain whole warrants exercisable for one whole share, in order to reduce the dilutive effect of the warrants upon completion of our partnering transaction as compared to units that each contain a warrant to purchase one whole share, thus making us, we believe, a more attractive partnering transaction partner for target businesses.

 

Exercise price

$11.50 per share of Series A common stock, subject to adjustment as described herein.

 

  In addition, if (x) we issue additional shares of common stock or equity-linked securities, excluding forward purchase units, for capital raising purposes in connection with the consummation of our partnering transaction at an issue price or effective issue price of less than $9.20 per share of common stock (with such issue price or effective issue price to be determined in good faith by our board of directors and, in the case of any such issuance to our sponsor or Post or its other subsidiaries, without taking into account any founder shares held by our sponsor or Post or its other subsidiaries, as applicable) (the “Newly Issued Price”), (y) the aggregate gross proceeds from such issuances, excluding the forward purchase units, represent more than 60% of the total equity proceeds, and interest thereon, available for the funding of our partnering transaction on the date of the completion of our partnering transaction (net of redemptions), and (z) the volume weighted average trading price of our Series A common stock during the 20 trading day period starting on the trading day prior to the day on which we consummate our partnering transaction (such price, the “Market Value”) is below $9.20 per share, the exercise price of the warrants will be adjusted (to the nearest cent) to be equal to 115% of the higher of the Market Value and the Newly Issued Price and the $18.00 per share redemption trigger price described below under “Redemption of warrants when the price per share of Series A common stock equals or exceeds $18.00” will be adjusted (to the nearest cent) to be equal to 180% of the higher of the Market Value and the Newly Issued Price.

 

Exercise period

The warrants will become exercisable on the later of:

 

   

30 days after the completion of our partnering transaction; and

 

   

12 months from the closing of this offering;



 

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  provided in each case that we have an effective registration statement under the Securities Act covering the issuance of the shares of common stock issuable upon exercise of the warrants and a current prospectus relating to them is available and such shares are registered, qualified or exempt from registration under the securities, or blue sky, laws of the state of residence of the holder (or we permit holders to exercise their warrants on a cashless basis under the circumstances specified in the warrant agreement).

 

  We are not registering the shares of Series A common stock issuable upon exercise of the warrants at this time. However, we have agreed that as soon as practicable, but in no event later than 20 business days after the consummation of our partnering transaction, we will use our commercially reasonable efforts to file with the SEC, and within 60 business days following our partnering transaction to have declared effective, a registration statement covering the issuance of the shares of Series A common stock issuable upon exercise of the warrants and to maintain a current prospectus relating to those shares of Series A common stock until the warrants expire or are redeemed; provided that, if our Series A common stock is at the time of any exercise of a warrant not listed on a national securities exchange such that it satisfies the definition of a “covered security” under Section 18(b)(1) of the Securities Act, we may, at our option, require holders of public warrants who exercise their warrants to do so on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act and, in the event we so elect, we will not be required to file or maintain in effect a registration statement, but we will use our commercially reasonable efforts to register or qualify the shares under applicable blue sky laws to the extent an exemption is not available.

 

  The warrants will expire at 5:00 p.m., New York City time, five years after the completion of our partnering transaction or earlier upon redemption or liquidation. On the exercise of any warrant, the warrant exercise price will be paid directly to us and not placed in the trust account.

 

Redemption of warrants when the price per share of Series A common stock equals or exceeds $18.00

Once the warrants become exercisable, we may redeem the outstanding warrants (except as described herein with respect to the private placement warrants):

 

   

in whole and not in part;

 

   

at a price of $0.01 per 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 last reported sale price of our Series A common stock equals or exceeds $18.00 per share (as adjusted



 

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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 — Public Stockholders’ Warrants — 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.

 

  We will not redeem the warrants for cash unless a registration statement under the Securities Act covering the issuance of the shares of Series A common stock issuable upon exercise of the warrants is then effective and a current prospectus relating to those shares of common stock is available throughout the 30-day redemption period, except if the warrants may be exercised on a cashless basis and such cashless exercise is exempt from registration under the Securities Act. If and when the warrants become redeemable by us, we may exercise our redemption right even if we are unable to register or qualify the underlying securities for sale under all applicable state securities laws.

 

  If we call the warrants for redemption as described above, our management will have the option to require all holders that wish to exercise warrants to do so on a “cashless basis.” In determining whether to require all holders to exercise their warrants on a “cashless basis,” our management will consider, among other factors, our cash position, the number of warrants that are outstanding and the dilutive effect on our stockholders of issuing the maximum number of shares of Series A common stock issuable upon the exercise of our warrants. In such event, each holder would pay the exercise price by surrendering the warrants for that number of shares of Series A common stock equal to the lesser of (A) the quotient obtained by dividing (x) the product of the number of shares of Series A common stock underlying the warrants, multiplied by the excess of the “fair market value” of our Series A common stock (defined below) over the exercise price of the warrants by (y) the fair market value and (B) 0.361 shares of Series A common stock per warrant (subject to adjustment). See “Description of Securities — Warrants — Public Stockholders’ Warrants” for additional information.

 

  The “fair market value” of our Series A common stock for this purpose shall mean the volume weighted average price of our Series A common stock during the 10 trading days immediately following the date on which the notice of redemption is sent to the holders of warrants. We will provide our warrant holders with the final fair market value no later than one business day after the 10-trading day period described above ends.

 

Forward Purchase Agreement

In connection with the consummation of this offering, we will enter into a forward purchase agreement with our sponsor pursuant to



 

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which our sponsor will commit to purchase from us up to 10,000,000 forward purchase units, consisting of one forward purchase share and one-third of one forward purchase warrant, for $10.00 per forward purchase unit, in an aggregate amount of up to $100,000,000, in a private placement that will close concurrently with the closing of our partnering transaction. The proceeds from the sale of these forward purchase units, together with the amounts available to us from the trust account (after giving effect to any redemptions of public shares) and any other equity or debt financing obtained by us in connection with the partnering transaction, will be used to satisfy the cash requirements of the partnering transaction, including funding the purchase price and paying expenses and retaining specified amounts to be used by the post-partnering transaction company for working capital or other purposes. To the extent that the amounts available from the trust account and other financing are sufficient for such cash requirements, our sponsor may purchase less than 10,000,000 forward purchase units.

 

  Holders of the forward purchase shares will be entitled to registration rights. The forward purchase warrants will generally be identical to the term of the redeemable warrants included in the units being issued in this offering.

 

Election of directors; voting rights

Prior to the completion of our partnering transaction, only holders of our Series F common stock will have the right to vote on the election of directors. Holders of our Series A common stock and holders of our Series B common stock, if any, will not be entitled to vote on the election of directors during such time. These provisions of our amended and restated certificate of incorporation may only be amended if approved by holders of more than 50% of the total voting power of the outstanding shares of our common stock entitled to vote thereon as well as more than 50% of the outstanding Series F common stock. On any vote to approve our partnering transaction or any other matter submitted to a vote of our stockholders prior to our partnering transaction other than the matters addressed above in this paragraph, holders of our Series A common stock, holders of our Series B common stock, if any, and holders of our Series F common stock will generally vote together as a single class, except as required by Delaware law or stock exchange rule, with each share of our common stock entitling the holder to one vote.

 

 

Following our partnering transaction, holders of our Series A common stock and holders of our Series B common stock will generally vote together as a single class on matters presented for a stockholder vote, except as required by Delaware law or stock exchange rule, with each share of Series A common stock entitling the holder to one vote per share and each share of Series B common stock entitling the holder to ten votes per share. Holders of our Series C common stock will not be entitled to any voting powers,



 

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except as (and then only to the extent) otherwise required by Delaware law. The high-vote nature of our Series B common stock differs from the typical capital structure of many other special purpose acquisition companies and will significantly dilute the voting power of the investors in this offering following our partnering transaction and may make completing our partnering transaction more difficult or costly.

 

Founder shares

In January 2021, our sponsor purchased an aggregate of 11,500,000 shares of Series F common stock, par value $0.0001 per share, for an aggregate purchase price of $25,000, with a purchase price of approximately $0.002 per share. On April 8, 2021, our sponsor surrendered 2,875,000 founder shares to us for no consideration resulting in an aggregate of 8,625,000 founder shares outstanding (up to 1,125,000 founder shares are subject to forfeiture by our sponsor depending on the extent to which the underwriters’ overallotment option is exercised). As a result of such surrender, the per share purchase price increased to approximately $0.003 per share. The number of founder shares issued was determined based on the expectation that the founder shares would represent 20% of the outstanding shares of common stock (excluding the private placement shares underlying the private placement units) upon the completion of this offering. Prior to the initial investment in the company of $25,000 by our sponsor, the company had no assets, tangible or intangible. Up to an aggregate of 1,125,000 founder shares are subject to forfeiture by our sponsor depending on the extent to which the underwriters’ over-allotment option is exercised.

 

  The founder shares are identical to the shares of Series A common stock included in the units being sold in this offering, except that:

 

   

prior to our partnering transaction, only holders of the Series F common stock have the right to vote on the election of directors. Such rights as provided by our amended and restated certificate of incorporation may only be amended if approved by holders of more than 50% of the total voting power of the outstanding shares of our common stock entitled to vote thereon as well as more than 50% of the outstanding Series F common stock;

 

   

prior to our partnering transaction and so long as any shares of Series F common stock remain outstanding, the rights, powers and preferences provided by our amended and restated certificate of incorporation to the Series B common stock may be amended only if approved by the holders of a majority of the outstanding Series F common stock;

 

   

on any vote to approve our partnering transaction or any other matter submitted to a vote of our stockholders prior to our partnering transaction other than the matters set forth in the previous bullets, holders of our Series A common stock, holders of our Series B common stock, if any, and holders of our Series F



 

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common stock will generally vote together as a single class, except as required by Delaware law or stock exchange rule, with each share of our common stock entitling the holder to one vote;

 

   

following our partnering transaction, holders of our Series A common stock and holders of our Series B common stock will generally vote together as a single class on matters presented for a stockholder vote, except as required by Delaware law or stock exchange rule, with each share of Series A common stock entitling the holder to one vote per share and each share of Series B common stock entitling the holder to ten votes per share;

 

   

the founder shares are subject to certain transfer restrictions, as described in more detail below;

 

   

our sponsor, executive officers and directors will enter into a letter agreement with us, pursuant to which they will agree to waive: (1) their redemption rights with respect to our common stock held by them in connection with the completion of our partnering transaction; (2) their redemption rights with respect to our common stock held by them in connection with a stockholder vote to approve an amendment to our amended and restated certificate of incorporation (A) to modify the substance or timing of our obligation to allow redemptions in connection with our partnering transaction or to redeem 100% of our public shares if we have not consummated our partnering transaction within 24 months from the closing of this offering (or 27 months following an agreement in principle event) or (B) with respect to any other provision relating to stockholders’ rights or pre-partnering transaction 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 partnering transaction within 24 months from the closing of this offering (or 27 months following an agreement in principle event) or during any extended time that we have to consummate a partnering transaction beyond 24 months (or 27 months following an agreement in principle event) as a result of a stockholder vote to amend our amended and restated certificate of incorporation (an “Extension Period”) (although our sponsor, officers and directors will be entitled to liquidating distributions from the trust account with respect to any public shares they hold if we fail to complete our partnering transaction within the prescribed time frame). If we submit our partnering transaction to our public stockholders for a vote, our sponsor, executive officers and directors will agree to vote all shares of our common stock held by them in favor of our partnering transaction. As a result, in addition to our sponsor’s founder shares and private placement shares (assuming our sponsor, or an affiliate of our sponsor, does not purchase any public units in this offering), we would need 10,750,001, or



 

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35.8% (assuming all outstanding shares are voted and the over-allotment option is not exercised), or 1,125,002, or 3.8% (assuming only the minimum number of shares representing a quorum are voted and the over-allotment option is not exercised), of the 30,000,000 public shares sold in this offering to be voted in favor of a partnering transaction in order to have such partnering transaction approved;

 

   

shares of our Series F common stock are automatically convertible into shares of our Series B common stock at the time of our partnering transaction, or earlier at the option of the holder, on a one-for-one basis, as described in more detail below, and, prior to and following our partnering transaction, each share of Series B common stock is convertible, at the option of the holder, into one share of our Series A common stock; and

 

   

the holders of founder shares are entitled to registration rights.

 

Transfer restrictions on founder shares and private placement units

Our sponsor, executive officers and directors will agree not to transfer, assign or sell (i) any founder shares held by them until the earlier to occur of: (1) one year after the completion of our partnering transaction; and (2) subsequent to our partnering transaction, (x) the date on which we complete a liquidation, merger, stock exchange, reorganization or other similar transaction that results in all of our public stockholders having the right to exchange their shares of common stock for cash, securities or other property or (y) if the last reported sale price of our Series A common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations, and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after our partnering transaction, or (ii) any of their private placement units, private placement shares, private placement warrants and Series A common stock issued upon conversion or exercise thereof until 30 days after the completion of our partnering transaction, subject to certain exceptions described herein under “Principal Stockholders — Transfers of Founder Shares and Private Placement Units.” Any permitted transferees as described herein under “Principal Stockholders — Transfers of Founder Shares and Private Placement Units” would be subject to the same restrictions and other agreements as our sponsor with respect to any founder shares, private placement units, private placement shares, private placement warrants and shares of Series A common stock issued upon conversion or exercise thereof. We refer to such transfer restrictions throughout this prospectus as the lock-up.

 

Founder shares conversion

We have 8,625,000 shares of Series F common stock, par value $0.0001 per share, issued and outstanding. Shares of Series F common stock will automatically convert into shares of Series B common stock at the time of our partnering transaction, or earlier at the option of the holder, on a one-for-one basis.


 

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  Prior to and following our partnering transaction, each share of Series B common stock is convertible, at the option of the holder, into one share of our Series A common stock.

 

Private placement units

Our sponsor has committed, pursuant to a written agreement, to purchase an aggregate of 1,000,000 private placement units (or 1,090,000 private placement units if the underwriters’ over-allotment option is exercised in full), at a price of $10.00 per unit in a private placement to occur concurrently with the closing of this offering for an aggregate purchase price of $10,000,000 (or $10,900,000 if the over-allotment option is exercised in full). The private placement units are identical to the units sold in this offering, subject to certain limited exceptions as described in this prospectus. If we do not consummate a partnering transaction within 24 months from the closing of this offering, the proceeds from the sale of the private placement units held in the trust account will be used to fund the redemption of our public shares (subject to the requirements of applicable law) and the private placement units (and the underlying securities) will expire worthless. The private placement warrants included in the private placement units will be non-redeemable by us and exercisable on a cashless basis so long as they are held by our sponsor or its permitted transferees (see “Description of Securities — Warrants — Private Placement Warrants”). If the private placement warrants are held by holders other than our sponsor or its permitted transferees, the private placement warrants will be redeemable by us in all redemption scenarios and exercisable by the holders on the same basis as the warrants included in the units being sold in this offering.

 

Cashless exercise of private placement warrants

If holders of private placement warrants elect to exercise them on a cashless basis, except as described under “Redemption of warrants when the price per share of Series A common stock equals or exceeds $18.00,” they would pay the exercise price by surrendering their warrants for that number of shares of Series A common stock equal to the quotient obtained by dividing (x) the product of the number of shares of Series A common stock underlying the warrants, multiplied by the excess of the “Sponsor fair market value” (defined below) over the exercise price of the warrants by (y) the Sponsor fair market value. The “Sponsor fair market value” shall mean the average reported closing price of the shares of Series A common stock for the 10 trading days ending on the third trading day prior to the date on which the notice of warrant exercise is sent to the warrant agent. The reason that we have agreed that these warrants will be exercisable on a cashless basis so long as they are held by the sponsor or its permitted transferees is because it is not known at this time whether they will be affiliated with us following a partnering transaction. If they remain affiliated with us, their ability to sell our securities in the open market will be significantly limited. We expect to have policies in place that restrict insiders from selling our securities except during specific periods.


 

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Transfer restrictions on private placement warrants

The private placement warrants (including the Series A common stock issuable upon exercise of the private placement warrants) will not be transferable, assignable or salable until 30 days after the completion of our partnering transaction, except as described below under “Principal Stockholders — Transfers of Founder Shares and Private Placement Units.”

 

Indication of Interest

Our sponsor has also indicated that it or one of its affiliates has an interest in purchasing, directly or indirectly, up to 4,000,000 units in this offering at the public offering price. The underwriters will not receive any underwriting discounts or commissions (including, without limitation, deferred underwriting commissions) on public units purchased by our sponsor or its affiliate. However, indications of interest are not binding agreements or commitments to purchase and our sponsor or its affiliate may decide not to purchase any public units in this offering. In addition, the underwriters could determine to sell fewer public units to our sponsor or its affiliate than it indicated an interest in purchasing or could determine not to sell any public units to our sponsor or its affiliate.

 

Proceeds to be held in trust account

NYSE listing rules provide that at least 90% of the gross proceeds from this offering and the sale of the private placement units be deposited in a trust account. Of the net proceeds we will receive from this offering and the sale of the private placement units described in this prospectus, $300.0 million ($10.00 per unit), or $345.0 million ($10.00 per unit) if the underwriters’ over-allotment option is exercised in full (including $10,500,000 (or up to $12,075,000 if the underwriters’ over-allotment option is exercised in full) in deferred underwriting commissions), will be deposited into a United States-based trust account with Continental Stock Transfer & Trust Company acting as trustee, and $1,500,000 will be used to pay expenses in connection with the closing of this offering and for working capital following this offering. The funds in the trust account will be invested only in United States government treasury bills with a maturity of 185 days or less or in money market funds investing solely in United States Treasuries.

 

 

Except with respect to interest earned on the funds held in the trust account that may be released to us to pay our taxes, if any, the funds held in the trust account will not be released from the trust account until the earliest of: (1) the completion of our partnering transaction; (2) the redemption of any public shares properly submitted in connection with a stockholder vote to amend our amended and restated certificate of incorporation (A) to modify the substance or timing of our obligation to allow redemptions in connection with our partnering transaction or to redeem 100% of our public shares if we do not complete our partnering transaction within 24 months from the closing of this offering (or 27 months following an agreement in principle event) or (B) with respect to any other provision relating to



 

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stockholders’ rights or pre-partnering transaction activity; and (3) the redemption of all of our public shares if we have not completed our partnering transaction within 24 months from the closing of this offering (or 27 months following an agreement in principle event), subject to applicable law. The proceeds deposited in the trust account could become subject to the claims of our creditors, if any, which could have priority over the claims of our public stockholders.

 

Anticipated expenses and funding sources

Unless and until we complete our partnering transaction, no proceeds held in the trust account will be available for our use, except the withdrawal of interest to pay taxes or to redeem our public shares in connection with an amendment to our amended and restated certificate of incorporation, as described above. The funds in the trust account will be invested only in United States government treasury bills with a maturity of 185 days or less or in money market funds investing solely in United States Treasuries and meeting certain conditions under Rule 2a-7 under the Investment Company Act. Based upon current interest rates, we expect the trust account to generate approximately $300,000 of interest annually (assuming an interest rate of 0.1% per year). Unless and until we complete our partnering transaction, we may pay our expenses only from:

 

   

the net proceeds of this offering and the sale of the private placement units not held in the trust account, which will be approximately $2,500,000 in working capital after the payment of approximately $1,500,000 in expenses relating to this offering; and

 

   

any loans or additional investments from our sponsor, members of our management team or Post or any of its subsidiaries or other third parties, although they are under no obligation or other duty to loan funds to, or invest in, us, and provided that any such loans will not have any claim on the proceeds held in the trust account unless such proceeds are released to us upon completion of our partnering transaction. If we complete our partnering transaction, we expect to repay such loaned amounts out of the proceeds of the trust account released to us. In the event that our partnering transaction does not close, we may use a portion of the working capital held outside the trust account to repay such loaned amounts but no proceeds from our trust account would be used to repay such loaned amounts. Up to $2,500,000 of such loans made to us may be convertible into units at a price of $10.00 per unit at the option of the lender. The units would be identical to the private placement units issued to our sponsor.



 

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Conditions to completing our partnering transaction

There is no limitation on our ability to raise funds privately or through loans in connection with our partnering transaction. NYSE listing rules require that our partnering transaction must be with one or more target businesses that have an aggregate fair market value equal to at least 80% of the value of the trust account (excluding any deferred underwriting commissions and taxes payable on interest earned on the trust account) at the time of our signing a definitive agreement in connection with our partnering transaction. We do not currently intend to purchase multiple businesses in unrelated industries in conjunction with our partnering transaction, although there is no assurance that will be the case.

 

  If our board of directors is not able to independently determine the fair market value of the target business or businesses, we will obtain an opinion from an independent investment banking firm or another independent entity that commonly renders valuation opinions with respect to the satisfaction of such criteria. We will complete our partnering transaction only if the post-transaction company owns or acquires 50% or more of the outstanding voting power of the outstanding capital stock of the target or otherwise acquires an interest in the target business sufficient for it not to be required to register as an investment company under the Investment Company Act. Even if the post-transaction company owns or acquires 50% or more of the outstanding voting power of the outstanding capital stock of the target, our stockholders prior to our partnering transaction may collectively own a minority interest (economic and/or voting) in the post-transaction company, depending on valuations ascribed to the target and us in our partnering transaction. If less than 100% of the outstanding equity interests or assets of a target business or businesses are owned or acquired by the post-transaction company, the portion of such business or businesses that is owned or acquired by us is what will be valued for purposes of the 80% of net assets test; provided that in the event that our partnering transaction involves more than one target business, the 80% of net assets test will be based on the aggregate value of all of the target businesses.

 

Permitted purchases and other transactions with respect to our securities by our sponsor, insiders and the related companies

If we seek stockholder approval of our partnering transaction and we do not conduct redemptions in connection with our partnering transaction pursuant to the tender offer rules, our sponsor, directors, officers, or advisors or any of the related companies and their directors, officers and advisors may purchase public shares or public warrants or a combination thereof in privately negotiated transactions or in the open market, either prior to or following the completion of our partnering transaction, although they are under no obligation or other duty to do so. There is no limit on the number



 

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of securities such persons may purchase, or any restriction on the price that they may pay. Any such price per share may be different than the amount per share a public stockholder would receive if it elected to redeem its shares in connection with our partnering transaction. Additionally, at any time at or prior to our partnering transaction, subject to applicable securities laws (including with respect to material nonpublic information), our sponsor, directors, officers, or advisors or any of the related companies and their directors, officers and advisors may enter into transactions with investors and others to provide them with incentives to acquire public shares, vote their public shares in favor of our partnering transaction or not redeem their public shares. However, such persons have no current commitments, plans or intentions to engage in such purchases or other transactions and have not formulated any terms or conditions for any such purchases or other transactions. None of the funds in the trust account will be used to purchase public shares or public warrants in such transactions. Such persons will be subject to restrictions in making any such purchases when they are in possession of any material non-public information or if such purchases are prohibited by Regulation M under the Exchange Act. See “Proposed Business — Permitted purchases and other transactions with respect to our securities” for a description of how such persons will determine from which stockholders to enter into transactions with.

 

  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. Our sponsor, directors, officers, or advisors or any of the related companies and their directors, officers and advisors will be restricted from making purchases if such purchases would violate Section 9(a)(2) or Rule 10b-5 of the Exchange Act.

 

  We expect that any such purchases will be reported pursuant to Section 13 and Section 16 of the Exchange Act to the extent such purchasers are subject to such reporting requirements. None of the funds held in the trust account will be used in such transactions prior to completion of our partnering transaction.

 

 

The purpose of any such transaction could be to (1) vote such shares in favor of the partnering transaction and thereby increase the likelihood of obtaining stockholder approval of the partnering transaction, (2) reduce the number of public warrants outstanding or to vote such warrants on any matters submitted to the warrant holders for approval in connection with our partnering transaction or (3) satisfy a closing condition in an agreement with a target that requires us to have a minimum net worth or a certain amount of



 

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cash at the consummation of our partnering transaction, where it appears that such requirement would otherwise not be met. Any such transactions may result in the completion of our partnering transaction that may not otherwise have been possible. In addition, if such purchases are made, the public “float” of our shares of Series A common stock or warrants may be reduced and the number of beneficial holders of our securities may be reduced, which may make it difficult to maintain or obtain the quotation, listing or trading of our securities on a national securities exchange.

 

  Certain members of our management team, and officers and directors of Post and their affiliates, may purchase our securities in the open market following the IPO and enter into an agreement in accordance with the guidelines of Rule 10b5-1 under the Exchange Act to place limit orders, through an independent broker-dealer registered under Section 15 of the Exchange Act which is not affiliated with us nor part of the underwriting or selling group, to purchase our securities in the open market at market prices, subject to certain conditions.

 

Redemption rights for public stockholders upon completion of our partnering transaction

We will provide our public stockholders with the opportunity to redeem all or a portion of their public shares upon the completion of our partnering transaction at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the trust account, calculated as of two business days prior to the completion of our partnering transaction, including interest (which interest shall be net of taxes payable), divided by the number of then outstanding public shares, subject to the limitations described herein. The amount in the trust account is initially anticipated to be $10.00 per public share. The per-share amount we will distribute to investors who properly redeem their shares will not be reduced by the deferred underwriting commissions we will pay to the underwriters. The redemption rights will include the requirement that a beneficial holder must identify itself in order to validly redeem its shares. There will be no redemption rights upon the completion of our partnering transaction with respect to our warrants. Our sponsor, executive officers and directors will enter into a letter agreement with us, pursuant to which they will agree to waive their redemption rights with respect to our common stock held by them in connection with the completion of our partnering transaction.

 

Manner of conducting redemptions

We will provide our public stockholders with the opportunity to redeem all or a portion of their public shares upon the completion of our partnering transaction either: (1) in connection with a stockholder meeting called to approve the partnering transaction; or (2) by means of a tender offer. At completion of the partnering transaction, we will be required to purchase any public shares properly delivered for redemption and not withdrawn. Except as required by Delaware law or stock exchange rule, the decision as to



 

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whether we will seek stockholder approval of a proposed partnering transaction or conduct a tender offer will be made by us, solely in our discretion, and will be based on a variety of factors such as the timing of the transaction. Asset acquisitions and stock purchases would not typically require stockholder approval while direct mergers with our company where we do not survive and any transactions where we issue more than 20% of our outstanding common stock or seek to amend our amended and restated certificate of incorporation would typically require stockholder approval. We intend to conduct redemptions without a stockholder vote pursuant to the tender offer rules of the SEC unless stockholder approval is required by applicable law or stock exchange rule or we choose to seek stockholder approval for business or other reasons.

 

  If a stockholder vote is not required and we do not decide to hold a stockholder vote for business or other reasons, we will, pursuant to our amended and restated certificate of incorporation:

 

   

conduct the redemptions pursuant to Rule 13e-4 and Regulation 14E of the Exchange Act, which regulate issuer tender offers; and

 

   

file tender offer documents with the SEC prior to completing our partnering transaction which contain substantially the same financial and other information about the partnering transaction and the redemption rights as is required under Regulation 14A of the Exchange Act, which regulates the solicitation of proxies.

 

  Upon the public announcement of our partnering transaction, 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 shares of our Series A common stock 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 partnering transaction until the expiration of the tender offer period. In addition, the tender offer will be conditioned on public stockholders not tendering more than a specified number of public shares, which 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 following such redemptions, or any greater net tangible asset or cash requirement which may be contained in the agreement relating to our partnering transaction. If public stockholders tender more shares than we have offered to purchase, we will withdraw the tender offer and not complete such partnering transaction, and we instead may search for an alternate partnering transaction (including, potentially, with the same target).


 

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  If, however, stockholder approval of the transaction is required by applicable law or stock exchange rule or we decide to obtain stockholder 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.

 

  We expect that a final proxy statement would be mailed to public stockholders at least 10 days prior to the stockholder vote. However, we expect that a draft proxy statement would be made available to such stockholders well in advance of such time, providing additional notice of redemption if we conduct redemptions in conjunction with a proxy solicitation. Although we are not required to do so, we currently intend to comply with the substantive and procedural requirements of Regulation 14A in connection with any stockholder vote even if we are not able to maintain our NYSE listing or Exchange Act registration.

 

 

If we seek stockholder approval of our partnering transaction, holders of our common stock will vote together as a single class with each share entitling the holder to one vote and we will complete our partnering transaction only if a majority of the outstanding shares of our common stock voted are voted in favor of the partnering transaction, subject to any other vote required by applicable law. A quorum for such meeting will consist of the holders present in person or by proxy of shares of our outstanding capital stock representing a majority of all outstanding shares of capital stock of the company entitled to vote at such meeting. Shares of common stock held by our sponsor, officers and directors will count towards this quorum and they have agreed to vote our common stock held by them in favor of our partnering transaction. We expect that at the time of any stockholder vote relating to our partnering transaction, our sponsor and its permitted transferees will own at least 20% of our outstanding shares of common stock (excluding the private placement shares underlying the private placement units) entitled to vote thereon. As a result, in addition to our sponsor’s founder shares and private placement shares (assuming our sponsor, or an affiliate of our sponsor, does not purchase any public units in this offering), we would need 10,750,001, or 35.8% (assuming all outstanding shares are voted and the over-allotment option is not exercised), or 1,125,002, or 3.8% (assuming only the minimum number of shares representing a quorum are voted and the over-allotment option is not exercised), of the 30,000,000 public shares sold in this offering to be voted in favor of a partnering transaction in order to have such partnering transaction approved. These quorum and voting thresholds and agreements may make it more likely that we will consummate our partnering transaction. Each public stockholder



 

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may elect to redeem its public shares without voting, and if it does vote, irrespective of whether it votes for or against the proposed transaction.

 

  Our amended and restated certificate of incorporation will provide that in no event will we redeem our public shares in an amount that would cause our net tangible assets to be less than $5,000,001 following such redemptions. Redemptions of our public shares may also be subject to a higher net tangible asset test or cash requirement pursuant to an agreement relating to our partnering transaction. For example, the proposed partnering transaction may require: (1) cash consideration to be paid to the target or its owners; (2) cash to be transferred to the target for working capital or other general corporate purposes; or (3) the retention of cash to satisfy other conditions in accordance with the terms of the proposed partnering transaction. In the event the aggregate cash consideration we would be required to pay for all shares of common stock that are validly submitted for redemption plus any amount required to satisfy cash conditions pursuant to the terms of the proposed partnering transaction exceed the aggregate amount of cash available to us, we will not complete the partnering transaction or redeem any shares, all shares of common stock submitted for redemption will be returned to the holders thereof, and we instead may search for an alternate partnering transaction (including, potentially, with the same target).

 

Tendering share certificates in connection with a tender offer or redemption rights

We may require our public stockholders seeking to exercise their redemption rights, whether they are record holders or hold their shares in “street name,” to either tender their certificates to our transfer agent prior to the date set forth in the tender offer documents or proxy materials mailed to such holders, or up to two business days prior to the scheduled vote on the proposal to approve our partnering transaction 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, rather than simply voting against the partnering transaction. The tender offer or proxy materials, as applicable, that we will furnish to holders of our public shares in connection with our partnering transaction will indicate whether we are requiring public stockholders to satisfy such delivery requirements, which will include the requirement that a beneficial holder must identify itself in order to validly redeem its shares.


 

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Limitation on redemption rights of stockholders holding more than 15% of the shares sold in this offering if we hold a stockholder vote

Notwithstanding the foregoing redemption rights, if we seek stockholder approval of our partnering transaction and we do not conduct redemptions in connection with our partnering transaction pursuant to the tender offer rules, our amended and restated certificate of incorporation will provide that a public stockholder, together with any affiliate of such stockholder or any other person with whom such stockholder is acting in concert or as a “group” (as defined under Section 13 of the Exchange Act), will be restricted from redeeming its shares with respect to more than an aggregate of 15% of the shares sold in this offering, without our prior consent. We believe the restriction described above will discourage stockholders from accumulating large blocks of shares and subsequent attempts by such holders to use their ability to redeem their shares as a means to force us or our sponsor to purchase their shares at a significant premium to the then-current market price or on other undesirable terms. Absent this provision, a public stockholder holding more than an aggregate of 15% of the shares sold in this offering could threaten to exercise its redemption rights against a partnering transaction if such holder’s shares are not purchased by us or our sponsor at a premium to the then-current market price or on other undesirable terms. By limiting our stockholders’ ability to redeem to no more than 15% of the shares sold in this offering, we believe we will limit the ability of a small group of stockholders to unreasonably attempt to block our ability to complete our partnering transaction, particularly in connection with a partnering transaction with a target that requires as a closing condition that we have a minimum net worth or a certain amount of cash. However, we would not be restricting our stockholders’ ability to vote all of their shares (including all shares held by those stockholders that hold more than 15% of the shares sold in this offering) for or against our partnering transaction.

 

Redemption rights in connection with proposed amendments to our amended and restated certificate of incorporation

Some other blank check companies have a provision in their charter which prohibits the amendment of certain charter provisions. Our amended and restated certificate of incorporation will provide that any of its provisions (other than amendments relating to the appointment of directors prior to our partnering transaction, which require the approval of holders of more than 50% of the total voting power of the outstanding shares of our common stock entitled to vote thereon as well as more than 50% of the outstanding Series F common stock) related to pre-partnering transaction activity (including the requirement to deposit proceeds of this offering and the sale of the private placement units into the trust account and not release such amounts except in specified circumstances and to



 

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provide redemption rights to public stockholders as described herein) may be amended if approved by holders of at least 66 2/3% of the total voting power of our outstanding capital stock, subject to applicable law or stock exchange rule, and corresponding provisions of the trust agreement governing the release of funds from our trust account may be amended if approved by holders of at least 66 2/3% of the total voting power of our outstanding capital stock. Our sponsor, who will beneficially own 20% of our outstanding common stock upon the closing of this offering (excluding the private placement shares underlying the private placement units and assuming our sponsor does not purchase any units in this offering), may participate in any vote to amend our amended and restated certificate of incorporation and/or trust agreement and will have the discretion to vote in any manner it may choose. Our sponsor, executive officers and directors will agree, pursuant to a letter agreement with us, that they will not propose any amendment to our amended and restated certificate of incorporation (A) to modify the substance or timing of our obligation to allow redemptions in connection with our partnering transaction or to redeem 100% of our public shares if we do not complete our partnering transaction within 24 months from the closing of this offering (or 27 months following an agreement in principle event) or (B) with respect to any other provision relating to stockholders’ rights or pre-partnering transaction activity, unless we provide our public stockholders with the opportunity to redeem their shares of common stock upon approval of any such amendment at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the trust account, including interest (which interest shall be net of taxes payable), divided by the number of then outstanding public shares. Our sponsor, executive officers and directors will enter into a letter agreement with us, pursuant to which they will agree to waive their redemption rights with respect to our common stock held by them in connection with (x) amendments to our amended and restated certificate of incorporation described above and (y) the completion of our partnering transaction. Any permitted transferees as described herein under “Principal Stockholders — Transfers of Founder Shares and Private Placement Warrants” would be subject to the same restrictions and other agreements as our sponsor with respect to any founder shares.

 

Release of funds in trust account on consummation of our partnering transaction

On the completion of our partnering transaction, all amounts held in the trust account will be disbursed directly by the trustee or released to us to pay amounts due to any public stockholders who properly exercise their redemption rights as described above under “Redemption rights for public stockholders upon completion of our partnering transaction,” to pay the underwriters their deferred underwriting commissions, to pay all or a portion of the consideration payable to the target or owners of the target of our



 

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partnering transaction and to pay other expenses associated with our partnering transaction. If our partnering transaction is paid for using equity or debt or not all of the funds released from the trust account are used for payment of the consideration in connection with our partnering transaction or used for redemption of our public shares, we may apply the balance of the cash released to us from the trust account for general corporate purposes, including for maintenance or expansion of operations of post-transaction businesses, the payment of principal or interest due on indebtedness incurred in completing our partnering transaction, to fund the purchase of other businesses, for share repurchases or for working capital.

 

Redemption of public shares and distribution and liquidation if no partnering transaction

Our sponsor, executive officers and directors will agree that we will have only 24 months from the closing of this offering to complete our partnering transaction (or 27 months following an agreement in principle event). If we have not completed our partnering transaction within such 24-month period (or 27 months following an agreement in principle event) or during any Extension Period, we will: (1) cease all operations except for the purpose of winding up; (2) as promptly as reasonably possible but not more than 10 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 (which interest shall be net of taxes payable, and less up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding public shares, which redemption will completely extinguish public stockholders’ rights as stockholders (including the right to receive further liquidating distributions, if any); and (3) as promptly as reasonably possible following such redemption, subject to the approval of our remaining stockholders and our board of directors, dissolve and liquidate, subject in each case to our obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law. There will be no redemption rights or liquidating distributions with respect to our warrants, which will expire worthless if we fail to complete our partnering transaction within such 24-month period (or 27 months following an agreement in principle event).

 

 

Our sponsor, executive officers and directors will enter into a letter agreement with us, pursuant to which they will waive their rights to liquidating distributions from the trust account with respect to any founder shares held by them if we fail to complete our partnering transaction within 24 months from the closing of this offering (or 27 months following an agreement in principle event) or during any Extension Period (although our sponsor, officers and directors will be entitled to liquidating distributions from the trust account with respect to any public shares they hold if we fail to complete our



 

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partnering transaction within the prescribed time frame). The underwriters have agreed to waive their rights to their deferred underwriting commission held in the trust account in the event we do not complete our partnering transaction and, in such event, such amounts will be included with the funds held in the trust account that will be available to fund the redemption of our public shares.

 

  Our sponsor, executive officers and directors will agree, pursuant to a letter agreement with us, that they will not propose any amendment to our amended and restated certificate of incorporation (A) to modify the substance or timing of our obligation to allow redemptions in connection with our partnering transaction or to redeem 100% of our public shares if we do not complete our partnering transaction within 24 months from the closing of this offering (or 27 months following an agreement in principle event) or (B) with respect to any other provision relating to stockholders’ rights or pre-partnering transaction activity, unless we provide our public stockholders with the opportunity to redeem their shares of Series A common stock upon approval of any such amendment at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the trust account, including interest (which interest shall be net of taxes payable), divided by the number of then outstanding public shares. However, we may not redeem our public shares in an amount that would cause our net tangible assets to be less than $5,000,001 following such redemptions.

 

Limited payments to insiders

There will be no finder’s fees, reimbursements or cash payments made by us to our sponsor, Post or its other subsidiaries, or their officers or directors, for services rendered to us prior to or in

connection with the completion of our partnering transaction, other than the following payments, none of which will be made from the proceeds of this offering and the sale of the private placement units held in the trust account prior to the completion of our partnering transaction:

 

   

repayment of an aggregate of up to $300,000 in loans made to us by our sponsor to cover offering-related and organizational expenses;

 

   

payment to certain subsidiaries of Post of a total of $40,000 per month for office space, administrative and support services;

 

   

payments of fees in cash to each of our non-employee directors for service on our board of directors in the amounts of $50,000 on each of the closing of this offering, the one-year anniversary of the closing of this offering, and the earlier of (x) the two-year anniversary of the closing of this offering and (y) the closing of our partnering transaction;

 

   

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repayment of loans which may be made by our sponsor or Post or its other subsidiaries or certain of our officers and directors to finance transaction costs in connection with an intended partnering transaction, 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 made to us may be convertible into units at a price of $10.00 per unit at the option of the lender. The units would be identical to the private placement units.

 

  These payments may be funded using the net proceeds of this offering and the sale of the private placement units, in each case to the extent not held in the trust account or, upon the consummation of the partnering transaction, from any amounts remaining from the proceeds of the trust account released to us in connection therewith.

 

  Our audit committee will review on a quarterly basis all payments that were made by us to our sponsor, officers or directors or Post or its other subsidiaries.

 

Audit committee

We will establish and maintain an audit committee. Among its responsibilities, the audit committee will review on a quarterly basis all payments that were made by us to our sponsor, officers or directors, or our or their affiliates and monitor compliance with the other terms relating to this offering. If any noncompliance is identified, then the audit committee will be charged with the responsibility to promptly take all action necessary to rectify such noncompliance or otherwise to cause compliance with the terms of this offering. See “Management — Committees of the Board of Directors — Audit Committee.”

 

Conflicts of interest

As described under “Management — Conflicts of Interest,” each of our officers and directors has, and any of them in the future may have, additional fiduciary or contractual obligations to one or more other entities pursuant to which such officer or director may be required to present a partnering transaction opportunity to such entities before he or she presents such opportunity to us. Also, none of Post, our sponsor or any of our directors and officers is prohibited from sponsoring, investing or otherwise becoming involved with, any other blank check companies, including in connection with their partnering transactions. Accordingly, if any of our officers or directors becomes aware of a partnering transaction opportunity to which he or she has then-current fiduciary or contractual obligations to present such opportunity to another entity, including, in certain cases, to Post, he or she may only present such opportunity to us if such other entity including, in certain cases, to Post, rejects the opportunity. Our amended and restated certificate of incorporation will provide that we renounce our interest in any corporate opportunity offered to any director or officer unless such opportunity is expressly offered to such person solely in his or her



 

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capacity as a director or officer of our company, such opportunity is one we are legally and contractually permitted to undertake and would otherwise be reasonable for us to pursue, and such person has no fiduciary or contractual obligation to present the opportunity to any other person or entity including, in certain cases, to Post. Additionally, none of Post, our sponsor or any other entity currently has any obligation or duty to provide us with any potential partnering transaction opportunity.

 

  For more information, including a list of our executive officers and directors and entities for which a conflict of interest may or does exist between such officers and the company, see “Management —Conflicts of Interest.”

 

  We do not believe, however, that the fiduciary, contractual or other obligations or duties of our officers or directors will materially affect our ability to complete our partnering transaction. We believe that potential conflicts with Post are naturally mitigated by the differing nature of the investments Post would typically consider most synergistic to the existing Post businesses and the types of transactions we expect to find most attractive based, in part, on transaction size and ability to operate as a standalone public company. Notwithstanding our belief regarding natural mitigation, Post and its subsidiaries may compete with us for acquisition opportunities that fall within Post’s investment objectives or strategies. A decision by Post to pursue an opportunity would preclude us from pursuing it and could have a negative impact on our ability to complete our partnering transaction.

 

Indemnity

Our sponsor will agree that it will be liable to us if and to the extent any claims by a third party (other than our independent registered public accounting firm) for services rendered or products sold to us, or a prospective target business with which we have discussed entering into a transaction agreement, reduce the amount of funds in the trust account to below the lesser of: (1) $10.00 per public share; and (2) such lesser amount per public share held in the trust account as of the date of the liquidation of the trust account due to reductions in the value of the trust assets, in each case net of the amount of interest which may be withdrawn to pay taxes, except as to any claims by a third party who executed a waiver of any and all rights to seek access to the trust account and except as to any claims under our indemnity of the underwriters of this offering against certain liabilities, including liabilities under the Securities Act.

 

 

Moreover, in the event that an executed waiver is deemed to be unenforceable against a third party, our sponsor will not be responsible to the extent of any liability for such third-party claims. We have not independently verified whether our sponsor, which is a newly formed entity, has sufficient funds to satisfy its indemnity obligations and believe that our sponsor’s only assets are securities



 

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of our company and, therefore, our sponsor may not be able to satisfy those obligations. We have not asked our sponsor to reserve for such obligations. Therefore, we cannot assure you that our sponsor would be able to satisfy those obligations. As a result, if any such claims were successfully made against the trust account, the funds available for our partnering transaction and redemptions could be reduced to less than $10.00 per public share. In such event, we may not be able to complete our partnering transaction, and you would receive such lesser amount per share in connection with any redemption of your public shares. None of our officers or directors will indemnify us for claims by third parties including, without limitation, claims by vendors and prospective target businesses.

Risks

We are a newly incorporated company that has conducted no operations and has generated no revenues. Until we complete our partnering transaction, we will have no operations and will generate no operating revenues. In making your decision whether to invest in our securities, you should take into account not only the background of our management team, but also the special risks we face as a blank check company. This offering is not being conducted in compliance with Rule 419 promulgated under the Securities Act. Accordingly, you will not be entitled to protections normally afforded to investors in Rule 419 blank check offerings. For additional information concerning how Rule 419 blank check offerings differ from this offering, see “Proposed Business — Comparison of This Offering to Those of Blank Check Companies Subject to Rule 419.” You should carefully consider these and the other risks set forth in the section entitled “Risk Factors” in this prospectus.



 

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Summary Financial Data

The following table summarizes the relevant financial data for our business and should be read with our financial statements, which are included in this prospectus. We have not had any significant operations to date, so only balance sheet data is presented.

 

     March 31, 2021  
     Actual     As Adjusted  

Balance Sheet Data:

    

Working capital (deficiency)(1)

   $ (547,831)     $ 302,480,705  

Total assets

   $ 528,536     $ 302,480,705  

Total liabilities(2)

   $ 547,831     $ 25,149,999  

Value of Series A common stock subject to possible redemption(3)

   $ —       $ 272,330,700  

Stockholders’ equity (deficit)(4)

   $ (19,295   $ 5,000,006  

 

(1)

The “as adjusted” calculation includes $300,000,000 of cash held in trust from the proceeds of this offering and the sale of the private placement units, plus $2,500,000 in cash held outside the trust account, less $19,295 of actual stockholder’s deficit as of March 31, 2021.

(2)

The “as adjusted” calculation includes $10,500,000 of deferred underwriting commissions and derivative warrant liabilities of $14,649,999.

(3)

The “as adjusted” calculation equals the “as adjusted” total assets, less the “as adjusted” total liabilities, less the “as adjusted” stockholder’s equity, which is set to approximate the minimum net tangible assets threshold of at least $5,000,001.

(4)

Excludes 27,233,070 public shares which are subject to redemption in connection with our partnering transaction. The “as adjusted” calculation equals the “as adjusted” total assets, less the “as adjusted” total liabilities, less the value of shares of Series A common stock that may be redeemed in connection with our partnering transaction (initially $10.00 per share). The actual number of public shares that may be redeemed may exceed this amount as long as we satisfy the $5,000,001 minimum net tangible asset threshold.



 

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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS AND RISK FACTOR SUMMARY

Some statements contained in this prospectus are forward-looking in nature. Our forward-looking statements include, but are not limited to, statements regarding our or our management team’s expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements contained in this prospectus are based on our current expectations and beliefs concerning future developments and their potential effects on us. There can be no assurance that future developments affecting us will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, the following risks, uncertainties and other factors:

 

   

our being a newly incorporated company with no operating history and no revenues;

 

   

our ability to select an appropriate target business or businesses;

 

   

our ability to complete our partnering transaction;

 

   

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 partnering transaction;

 

   

our directors and officers allocating their time to other businesses and potentially having conflicts of interest with our business or in approving our partnering transaction;

 

   

actual and potential conflicts of interest relating to Post and its subsidiaries, our sponsor and other entities in which members of our management team are involved;

 

   

our potential ability to obtain additional financing to complete our partnering transaction including from our sponsor, Post or other third parties;

 

   

our pool of prospective target businesses, including the location and industry of such target businesses;

 

   

our ability to consummate a partnering transaction due to the uncertainty resulting from the recent COVID-19 pandemic and other events (such as terrorist attacks, natural disasters or a significant outbreak of other infectious diseases);

 

   

the ability of our officers and directors to generate a number of potential partnering transaction opportunities;

 

   

the voting structure of our common stock including any potential adverse effect on our ability to complete our partnering transaction timely or cost effectively, and, following our partnering transaction, our status as a controlled company and the ability of our sponsor and Post to exercise control over our policies and operations, each as a result of the high vote feature of our Series B common stock;

 

   

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 available to us from interest income on the trust account balance;

 

   

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.

 

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Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

 

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RISK FACTORS

An investment in our securities involves a high degree of risk. You should consider carefully all of the risks described below, together with the other information contained in this prospectus, before making a decision to invest in our units. If any of the following events occur, our business, financial condition and operating results may be materially adversely affected. In that event, the trading price of our securities could decline, and you could lose all or part of your investment.

Risks Relating to Our Search for, and Consummation of or Inability to Consummate, a Partnering Transaction

Our public stockholders may not be afforded an opportunity to vote on our proposed partnering transaction, which means we may complete our partnering transaction even though a majority of our public stockholders do not support such a combination.

We may not hold a stockholder vote to approve our partnering transaction unless the partnering transaction would require stockholder approval under applicable law or stock exchange listing requirements or if we decide to hold a stockholder vote for business or other reasons. For example, the NYSE rules currently allow us to engage in a tender offer in lieu of a stockholder meeting but would still require us to obtain stockholder approval if we were seeking to issue more than 20% of our outstanding shares to a target business as consideration in any partnering transaction. Therefore, if we were structuring a partnering transaction that required us to issue more than 20% of our outstanding shares, we would seek stockholder approval of such partnering transaction. However, except as required by Delaware law or stock exchange rule, the decision as to whether we will seek stockholder approval of a proposed partnering transaction or will allow stockholders to sell their shares to us in a tender offer will be made by us, solely in our discretion, and will be based on a variety of factors, such as the timing of the transaction. Accordingly, we may consummate our partnering transaction even if holders of a majority of our outstanding public shares, or if holders of a majority of the voting power of all outstanding shares of capital stock of the company entitled to vote, do not approve of the partnering transaction we consummate. See “Proposed Business — Stockholders May Not Have the Ability to Approve Our Partnering Transaction” for additional information.

If we seek stockholder approval of our partnering transaction, our sponsor, executive officers and directors will agree to vote in favor of such partnering transaction, regardless of how our public stockholders vote.

Our sponsor, executive officers and directors will agree (and their permitted transferees will agree) to vote our common stock held by them in favor of our partnering transaction. As a result, in addition to our sponsor’s founder shares and private placement shares (assuming our sponsor, or an affiliate of our sponsor, does not purchase any public units in this offering), we would need 10,750,001, or 35.8% (assuming all outstanding shares are voted and the over-allotment option is not exercised), or 1,125,002, or 3.8% (assuming only the minimum number of shares representing a quorum are voted and the over-allotment option is not exercised), of the 30,000,000 public shares sold in this offering to be voted in favor of a partnering transaction in order to have such partnering transaction approved. We expect that our sponsor and its permitted transferees will own at least 20% of our outstanding shares of common stock (excluding the private placement shares underlying the private placement units) at the time of any such stockholder vote. Accordingly, if we seek stockholder approval of our partnering transaction, it is more likely that the necessary stockholder approval will be received than would be the case if our sponsor agreed to vote its founder shares in accordance with the majority of the votes cast by our public stockholders. In addition, Post and our sponsor reserve the right but are not required to provide incremental funding to us in connection with our partnering transaction by purchasing additional shares of Series B common stock at a purchase price of $10.00 per share, which shares will also be sold in a private placement substantially concurrently with the consummation of our partnering transaction.

 

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In evaluating a prospective target business for our partnering transaction, our management will rely on the availability of all of the funds from the sale of the forward purchase units to be used as part of the consideration to the sellers in the partnering transaction. If the sale of some or all of the forward purchase units fails to close, for any reason, we may lack sufficient funds to consummate our partnering transaction.

In connection with the consummation of this offering, we will enter into a forward purchase agreement with our sponsor pursuant to which our sponsor will commit to purchase from us up to 10,000,000 forward purchase units for an aggregate purchase price of up to $100,000,000, in a private placement that will close concurrently with the closing of our partnering transaction. The proceeds from the sale of these forward purchase units, together with the amounts available to us from the trust account (after giving effect to any redemptions of public shares) and any other equity or debt financing obtained by us in connection with the partnering transaction, will be used to satisfy the cash requirements of the partnering transaction, including funding the purchase price and paying expenses and retaining specified amounts to be used by the post-partnering transaction company for working capital or other purposes. To the extent that the amounts available from the trust account and other financing are sufficient for such cash requirements, fewer than 10,000,000 forward purchase units may be purchased.

Our sponsor’s obligation to purchase the forward purchase units will be subject to fulfillment of customary closing conditions, including that our partnering transaction must be consummated substantially concurrently with the purchase of the forward purchase units. If the sale of the forward purchase units does not close for any reason, including by reason of the failure to fund the purchase price, for example, we may lack sufficient funds to consummate our partnering transaction.

Your only opportunity to affect the investment decision regarding a potential partnering transaction will be limited to the exercise of your right to redeem your shares from us for cash, unless we seek stockholder approval of such partnering transaction.

At the time of your investment in us, you will not be provided with an opportunity to evaluate the specific merits or risks of any target businesses. Additionally, since our board of directors may complete a partnering transaction without seeking stockholder approval, public stockholders may not have the right or opportunity to vote on the partnering transaction. Accordingly, if we do not seek stockholder approval, your only opportunity to affect the investment decision regarding a potential partnering transaction may be limited to exercising your redemption rights within the period of time (which will be at least 20 business days) set forth in our tender offer documents mailed to our public stockholders in which we describe our partnering transaction.

The ability of our public stockholders to redeem their shares for cash may make our financial condition unattractive to potential partnering transaction targets, which may make it difficult for us to enter into a partnering transaction with a target.

We may seek to enter into a partnering transaction agreement with a prospective target that requires as a closing condition that we have a minimum net worth or a certain amount of cash. If too many public stockholders exercise their redemption rights, we would not be able to meet such closing condition and, as a result, would not be able to proceed with the partnering transaction. The amount of the deferred underwriting commissions payable to the underwriters will not be adjusted for any shares that are redeemed in connection with a partnering transaction and such amount of deferred underwriting discount is not available for us to use as consideration in a partnering transaction. Furthermore, in no event will we redeem our public shares in an amount that would cause our net tangible assets to be less than $5,000,001 following such redemptions or any greater net tangible asset or cash requirement which may be contained in the agreement relating to our partnering transaction. Consequently, if accepting all properly submitted redemption requests would cause our net tangible assets to be less than $5,000,001 or such greater amount necessary to satisfy a closing condition as described above, we would not proceed with such redemption and the related partnering transaction and may instead search for an alternate partnering transaction (including, potentially, with the same target). Prospective

 

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targets will be aware of these risks and, thus, may be reluctant to enter into a partnering transaction with us. If we are able to consummate a partnering transaction, the per-share value of shares held by non-redeeming stockholders will reflect our obligation to pay the deferred underwriting commissions.

The ability of our public stockholders to exercise redemption rights with respect to a large number of our shares may not allow us to complete the most desirable partnering transaction or optimize our capital structure.

At the time we enter into an agreement for our partnering transaction, we will not know how many stockholders may exercise their redemption rights and, therefore, we will need to structure the transaction based on our expectations as to the number of shares that will be submitted for redemption. If our partnering transaction agreement requires us to use a portion of the cash in the trust account to pay the purchase price or requires us to have a minimum amount of cash at closing, we will need to reserve a portion of the cash in the trust account to meet such requirements or arrange for third-party financing. In addition, if a larger number of shares is submitted for redemption than we initially expected, we may need to restructure the transaction to reserve a greater portion of the cash in the trust account or arrange for third-party financing. Raising additional third-party financing may involve dilutive equity issuances or the incurrence of indebtedness at higher than desirable levels. The above considerations may limit our ability to complete the most desirable partnering transaction available to us or optimize our capital structure.

The ability of our public stockholders to exercise redemption rights with respect to a large number of our shares could increase the probability that our partnering transaction would be unsuccessful and that you would have to wait for liquidation in order to redeem your stock.

If our partnering transaction agreement requires us to use a portion of the cash in the trust account to pay the purchase price, or requires us to have a minimum amount of cash at closing, the probability that our partnering transaction would be unsuccessful increases. If our partnering transaction is unsuccessful, you would not receive your pro rata portion of the trust account until we liquidate the trust account. If you are in need of immediate liquidity, you could attempt to sell your stock in the open market; however, at such time our stock may trade at a discount to the pro rata amount per share in the trust account. In either situation, you may suffer a material loss on your investment or lose the benefit of funds expected in connection with our redemption until we liquidate or you are able to sell your stock in the open market.

The requirement that we complete our partnering transaction within the prescribed time frame (or such later date as approved by holders of a majority of the voting power of shares of our outstanding common stock that are voted at the meeting to extend such date, voting together as a single class) may give potential target businesses leverage over us in negotiating a partnering transaction and may limit the time we have in which to conduct due diligence on potential partnering transaction targets, in particular as we approach our dissolution deadline, which could undermine our ability to complete our partnering transaction on terms that would produce value for our stockholders.

Any potential target business with which we enter into negotiations concerning a partnering transaction will be aware that we must complete our partnering transaction within 24 months from the closing of this offering (or 27 months following an agreement in principle event). Consequently, such target business may obtain leverage over us in negotiating a partnering transaction, knowing that if we do not complete our partnering transaction with that particular target business, we may be unable to complete our partnering transaction with any target business. This risk will increase as we get closer to the end of the timeframe described above. In addition, we may have limited time to conduct due diligence and may enter into our partnering transaction on terms that we would have rejected upon a more comprehensive investigation.

 

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We may not be able to complete our partnering transaction 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, in which case our public stockholders may receive only $10.00 per share, or less than such amount in certain circumstances, and our warrants will expire worthless.

Our sponsor will agree that we must complete our partnering transaction within 24 months from the closing of this offering (or 27 months following an agreement in principle event). We may not be able to find a suitable target business and complete our partnering transaction within such time period. Our ability to complete our partnering transaction may be negatively impacted by general market conditions, volatility in the capital and debt markets and the other risks described herein, including as a result of terrorist attacks, natural disasters or a significant outbreak of infectious diseases. For example, the outbreak of Coronavirus Disease 2019 (“COVID-19”) continues to grow both in the United States and globally and, while the extent of the impact of the outbreak on us will depend on future developments, it could limit our ability to complete our partnering transaction, including as a result of increased market volatility, decreased market liquidity and third-party financing being unavailable on terms acceptable to us or at all. Additionally, the outbreak of COVID-19 and other events (such as terrorist attacks, natural disasters or a significant outbreak of other infectious diseases) may negatively impact businesses we may seek to acquire. It may also have the effect of heightening many of the other risks described in this “Risk Factors” section, such as those related to the market for our securities and cross-border transactions.

If we have not completed our partnering transaction within such time period or during any Extension Period, we will: (1) cease all operations except for the purpose of winding up; (2) as promptly as reasonably possible but not more than 10 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 (which interest shall be net of taxes payable, and less up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding public shares, which redemption will completely extinguish public stockholders’ rights as stockholders (including the right to receive further liquidating distributions, if any); and (3) as promptly as reasonably possible following such redemption, subject to the approval of our remaining stockholders and our board of directors, dissolve and liquidate, subject in each case to our obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law. In such case, our public stockholders may receive only $10.00 per share, or less than $10.00 per share, on the redemption of their shares, and our warrants will expire worthless. See “— If third parties bring claims against us, the proceeds held in the trust account could be reduced and the per-share redemption amount received by stockholders may be less than $10.00 per share” and other risk factors herein.

Our search for a partnering transaction, and any target business with which we ultimately consummate a partnering transaction, may be materially adversely affected by COVID-19 outbreak and other events and the status of debt and equity markets.

In December 2019, a novel strain of coronavirus was reported to have surfaced, which has and is continuing to spread throughout parts of the world, including the United States. On January 30, 2020, the World Health Organization declared the outbreak of COVID-19 a “Public Health Emergency of International Concern.” On January 31, 2020, United States Health and Human Services Secretary Alex M. Azar II declared a public health emergency for the United States to aid the United States healthcare community in responding to COVID-19, and on March 11, 2020, the World Health Organization characterized the outbreak as a “pandemic.” The COVID-19 outbreak has adversely affected, and other events (such as terrorist attacks, natural disasters or a significant outbreak of other infectious diseases) could adversely affect, economies and financial markets worldwide, business operations and the conduct of commerce generally, and the business of any potential target business with which we consummate a partnering transaction could be, or may already have been, materially and adversely affected. Furthermore, we may be unable to complete a partnering transaction if concerns relating to COVID-19 continue to restrict travel or limit the ability to have meetings with potential investors, or the target company’s personnel, vendors and services providers are unavailable to negotiate and consummate a transaction in a timely manner. The extent to which COVID-19 impacts our search for a

 

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partnering transaction will depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of COVID-19 and the actions to contain COVID-19 or treat its impact, among others. While vaccines for COVID-19 are being, and have been, developed, there is no guarantee that any such vaccine will be durable and effective consistent with current expectations and we expect it will take significant time before the vaccines are available and accepted on a significant scale. If the disruptions posed by COVID-19 or other events (such as terrorist attacks, natural disasters or a significant outbreak of other infectious diseases) continue for an extensive period of time, our ability to consummate a partnering transaction, or the operations of a target business with which we ultimately consummate a partnering transaction, may be materially adversely affected.

In addition, our ability to consummate a transaction may be dependent on the ability to raise equity and debt financing which may be impacted by COVID-19 and other events (such as terrorist attacks, natural disasters or a significant outbreak of other infectious diseases), including as a result of increased market volatility and decreased market liquidity and third-party financing being unavailable on terms acceptable to us or at all.

Finally, the outbreak of COVID-19 may also have the effect of heightening many of the other risks described in this “Risk Factors” section, such as those related to the market for our securities and cross border transactions.

If we seek stockholder approval of our partnering transaction, our sponsor, directors, officers, or advisors or any of the related companies or their directors, officers or advisors may enter into certain transactions, including purchasing shares or warrants from the public, which may influence the outcome of our proposed partnering transaction and reduce the public “float” of our securities.

If we seek stockholder approval of our partnering transaction and we do not conduct redemptions in connection with our partnering transaction pursuant to the tender offer rules, our sponsor, directors, officers, or advisors or any of the related companies or their directors, officers, or advisors may purchase public shares or public warrants or a combination thereof in privately negotiated transactions or in the open market either prior to or following the completion of our partnering transaction, although they are under no obligation or other duty to do so. Such a purchase may include a contractual acknowledgement that such public stockholder, although still the record holder of our shares, is no longer the beneficial owner thereof and therefore agrees not to exercise its redemption rights. In the event that our sponsor, directors, officers, or advisors or any of the related companies or their directors, officers, or advisors purchase public shares in privately negotiated transactions from public stockholders who have already elected to exercise their redemption rights, such selling public stockholders would be required to revoke their prior elections to redeem their shares. The price per share paid in any such transaction may be different than the amount per share a public stockholder would receive if it elected to redeem its shares in connection with our partnering transaction. Additionally, at any time at or prior to our partnering transaction, subject to applicable securities laws (including with respect to material nonpublic information), our sponsor, directors, officers, or advisors or any of the related companies or their directors, officers, or advisors may enter into transactions with investors and others to provide them with incentives to acquire public shares, vote their public shares in favor of our partnering transaction or not redeem their public shares. However, such persons have no current commitments, plans or intentions to engage in such transactions and have not formulated any terms or conditions for any such transactions. See “Proposed Business — Permitted purchases and other transactions with respect to our securities” for a description of how such persons will determine with which stockholders to enter into transactions. The purpose of any such transaction could be to (1) vote such shares in favor of the partnering transaction and thereby increase the likelihood of obtaining stockholder approval of the partnering transaction, (2) reduce the number of public warrants outstanding or to vote such warrants on any matters submitted to the warrant holders for approval in connection with our partnering transaction or (3) satisfy a closing condition in an agreement with a target that requires us to have a minimum net worth or a certain amount of cash at the consummation of our partnering transaction, where it appears that such requirement would otherwise not be met. Any such transactions may result in the completion of our partnering transaction that may not otherwise have been possible.

 

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In addition, if such purchases are made, the public “float” of our Series A common stock or warrants and the number of beneficial holders of our securities may be reduced, possibly making it difficult to maintain or obtain the quotation, listing or trading of our securities on a national securities exchange.

If a stockholder fails to receive notice of our offer to redeem our public shares in connection with our partnering transaction, or fails to comply with the procedures for tendering its shares, such shares may not be redeemed.

We will comply with the tender offer rules or proxy rules, as applicable, when conducting redemptions in connection with our partnering transaction. Despite our compliance with these rules, if a stockholder fails to receive our tender offer or proxy materials, as applicable, such stockholder may not become aware of the opportunity to redeem its shares. In addition, the tender offer documents or proxy materials, as applicable, that we will furnish to holders of our public shares in connection with our partnering transaction will describe the various procedures that must be complied with in order to validly tender or redeem public shares. For example, we may require our public stockholders seeking to exercise their redemption rights, whether they are record holders or hold their shares in “street name,” to either tender their certificates to our transfer agent prior to the date set forth in the tender offer documents or proxy materials mailed to such holders, or up to two business days prior to the scheduled vote on the proposal to approve the partnering transaction in the event we distribute proxy materials, or to deliver their shares to the transfer agent electronically. In the event that a stockholder fails to comply with these procedures, its shares may not be redeemed. See “Proposed Business — Tendering stock certificates in connection with a tender offer or redemption rights.”

You will not be entitled to protections normally afforded to investors of many other blank check companies.

Since the net proceeds of this offering and the sale of the private placement units are intended to be used to complete a partnering transaction with a business that has not been selected, we may be deemed to be a “blank check” company under the United States securities laws. However, because we will have net tangible assets in excess of $5,000,000 upon the successful completion of this offering and the sale of the private placement units and will file a Current Report on Form 8-K, including an audited balance sheet of our company demonstrating this fact, we are exempt from rules promulgated by the SEC to protect investors in blank check companies, such as Rule 419. Accordingly, investors will not be afforded the benefits or protections of those rules. Among other things, this means our units will be immediately tradable and we will have a longer period of time to complete our partnering transaction than do companies subject to Rule 419. Moreover, if this offering were subject to Rule 419, that rule would prohibit the release of any interest earned on funds held in the trust account to us unless and until the funds in the trust account were released to us in connection with our completion of our partnering transaction. For a more detailed comparison of our offering to offerings that comply with Rule 419, see “Proposed Business —  Comparison of This Offering to Those of Blank Check Companies Subject to Rule 419.”

If we seek stockholder approval of our partnering transaction and we do not conduct redemptions pursuant to the tender offer rules, and if you or a “group” of stockholders are deemed to hold in excess of 15% of our Series A common stock, you will lose the ability to redeem all such shares in excess of 15% of our Series A common stock.

If we seek stockholder approval of our partnering transaction and we do not conduct redemptions in connection with our partnering transaction pursuant to the tender offer rules, our amended and restated certificate of incorporation will provide that a public stockholder, together with any affiliate of such stockholder or any other person with whom such stockholder is acting in concert or as a “group” (as defined under Section 13 of the Exchange Act), will be restricted from redeeming its shares with respect to more than an aggregate of 15% of the shares sold in this offering, which we refer to as the “Excess Shares,” without our prior consent. However, our amended and restated certificate of incorporation will not restrict our stockholders’ ability to vote all of their shares (including Excess Shares) for or against our partnering transaction. Your inability

 

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to redeem the Excess Shares will reduce your influence over our ability to complete our partnering transaction and you could suffer a material loss on your investment in us if you sell Excess Shares in open market transactions. Additionally, you will not receive redemption distributions with respect to the Excess Shares if we complete our partnering transaction. And as a result, you will continue to hold that number of shares exceeding 15% and, in order to dispose of such shares, would be required to sell your stock in open market transactions, potentially at a loss.

Because of our limited resources and the significant competition for partnering transaction opportunities, it may be more difficult for us to complete our partnering transaction. If we are unable to complete our partnering transaction, our public stockholders may receive only approximately $10.00 per share, or less in certain circumstances, on our redemption of their stock, and our warrants will expire worthless.

We expect to encounter intense competition from other entities having a business objective similar to ours, including private investors (which may be individuals or investment partnerships), other blank check companies and other entities, domestic and international, competing for the types of businesses we intend to acquire. Many of these individuals and entities are well-established and have extensive experience in identifying and effecting, directly or indirectly, acquisitions of companies operating in or providing services to various industries. Many of these competitors possess greater technical, human and other resources or more local industry knowledge than we do and our financial resources will be relatively limited when contrasted with those of many of these competitors. Furthermore, our high vote capital structure differs from the typical capital structure of many other special purpose acquisition company competitors and may make us less attractive to an acquisition target or make an acquisition more costly to complete. While we believe there will be numerous target businesses we could potentially acquire with the net proceeds of this offering and the sale of the private placement units, our ability to compete with respect to the acquisition of certain target businesses that are sizable will be limited by our available financial resources. This inherent competitive limitation gives others an advantage in pursuing the acquisition of certain target businesses. Furthermore, our obligation to pay cash in connection with our public stockholders who properly exercise their redemption rights may reduce the resources available to us for our partnering transaction and our outstanding warrants, and the future dilution they potentially represent, may not be viewed favorably by target businesses. Any of these factors may place us at a competitive disadvantage in successfully negotiating and completing a partnering transaction. If we are unable to complete our partnering transaction, our public stockholders may receive only approximately $10.00 per share, or less in certain circumstances, on the liquidation of our trust account and our warrants will expire worthless. See “— If third parties bring claims against us, the proceeds held in the trust account could be reduced and the per-share redemption amount received by stockholders may be less than $10.00 per share” and other risk factors herein.

If the funds not being held in the trust account are insufficient to allow us to operate for at least the 24 months following the closing of this offering (or 27 months following an agreement in principle event), we may be unable to complete our partnering transaction.

The funds available to us outside of the trust account may not be sufficient to allow us to operate for at least the 24 months following the closing of this offering (or 27 months following an agreement in principle event), assuming that our partnering transaction is not completed during that time. We expect to incur significant costs in pursuit of our acquisition plans. Management’s plans to address this need for capital through this offering and potential loans from certain entities are discussed in the section of this prospectus titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” However, those entities, including Post, are not obligated to make loans to us in the future, and we may not be able to raise additional financing from other parties necessary to fund our expenses. Any such event in the future may negatively impact the analysis regarding our ability to continue as a going concern at such time. If we are unable to complete our partnering transaction, our public stockholders may receive only approximately $10.00 per share, or less in certain circumstances, on the liquidation of our trust account and our warrants will expire worthless. See “— If third parties bring claims against us, the proceeds held in the trust account could be reduced and the per-share redemption amount received by stockholders may be less than $10.00 per share” and other risk factors herein.

 

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If the net proceeds of this offering and the sale of the private placement units not being held in the trust account are insufficient, it could limit the amount available to fund our search for a target business or businesses and complete our partnering transaction and we will depend on loans from our sponsor or management team to fund our search, to pay our taxes and to complete our partnering transaction. If we are unable to obtain such loans, we may be unable to complete our partnering transaction.

Of the net proceeds of this offering and the sale of the private placement units, only approximately $2,500,000 will be available to us initially outside the trust account to fund our working capital requirements. In the event that our offering expenses exceed our estimate of $1,500,000, we may fund such excess with 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 our estimate of $1,500,000, the amount of funds we intend to be held outside the trust account would increase by a corresponding amount. If we are required to seek additional capital, we would need to borrow funds from our sponsor, Post or its subsidiaries or other third parties to operate or may be forced to liquidate. None of our sponsor, Post or its subsidiaries is under any obligation or other duty to loan funds to, or invest in, us in such circumstances. Any such loans may be repaid only from funds held outside the trust account or from funds released to us upon completion of our partnering transaction. Up to $2,500,000 of such loans may be convertible into units at a price of $10.00 per unit at the option of the lender. The units would be identical to the private placement units. If we are unable to complete our partnering transaction because we do not have sufficient funds available to us, we will be forced to cease operations and liquidate the trust account. In such case, our public stockholders may receive only $10.00 per share, or less in certain circumstances, and our warrants will expire worthless. See “— If third parties bring claims against us, the proceeds held in the trust account could be reduced and the per-share redemption amount received by stockholders may be less than $10.00 per share” and other risk factors herein. Subsequent to our completion of our partnering transaction, we may be required to subsequently take write-downs or write-offs, restructuring and impairment or other charges that could have a significant negative effect on our financial condition, results of operations and the price of our securities, which could cause you to lose some or all of your investment.

Even if we conduct extensive due diligence on a target business with which we combine, we cannot assure you that this diligence will identify all material issues that may be present with a particular target business, that it would be possible to uncover all material issues through a customary amount of due diligence, or that factors outside of the target business and outside of our control will not later arise. As a result of these factors, we may be forced to later write-down or write-off assets, restructure our operations, or incur impairment or other charges that could result in our reporting losses. Even if our due diligence successfully identifies certain risks, unexpected risks may arise and previously known risks may materialize in a manner not consistent with our preliminary risk analysis. Even though these charges may be non-cash items and not have an immediate impact on our liquidity, the fact that we report charges of this nature could contribute to negative market perceptions about us or our securities. In addition, charges of this nature may cause us to violate net worth or other covenants to which we may be subject as a result of assuming pre-existing debt held by a target business or by virtue of our obtaining post-combination debt financing. Accordingly, any stockholders or warrant holders who choose to remain a stockholder or warrant holder following our partnering transaction could suffer a reduction in the value of their securities. Such stockholders or warrant holders are unlikely to have a remedy for such reduction in value.

If third parties bring claims against us, the proceeds held in the trust account could be reduced and the per-share redemption amount received by stockholders may be less than $10.00 per share.

Our placing of funds in the trust account may not protect those funds from third-party claims against us. Although we will seek to have all vendors, service providers (other than our independent registered public accounting firm), prospective target businesses and other entities with which we do business execute agreements with us waiving any right, title, interest or claim of any kind in or to any monies held in the trust account for the benefit of our public stockholders, such parties may not execute such agreements, or even if

 

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they execute such agreements they may not be prevented from bringing claims against the trust account, including, but not limited to, fraudulent inducement, breach of fiduciary responsibility or other similar claims, as well as claims challenging the enforceability of the waiver, in each case in order to gain an advantage with respect to a claim against our assets, including the funds held in the trust account. If any third party refuses to execute an agreement waiving such claims to the monies held in the trust account, our management team will perform an analysis of the alternatives available to it and will only enter into an agreement with a third party that has not executed a waiver if management believes that such third party’s engagement would be significantly more beneficial to us than any alternative. Making such a request of potential target businesses may make our acquisition proposal less attractive to them and, to the extent prospective target businesses refuse to execute such a waiver, it may limit the field of potential target businesses that we might pursue.

Examples of possible instances where we may engage a third party that refuses to execute a waiver include the engagement of a third-party consultant whose particular expertise or skills are believed by management to be significantly superior to those of other consultants that would agree to execute a waiver or in cases where we are unable to find a service provider willing to execute a waiver. In addition, there is no guarantee that such entities will agree to waive any claims they may have in the future as a result of, or arising out of, any negotiations, contracts or agreements with us and will not seek recourse against the trust account for any reason. Upon redemption of our public shares, if we have not completed our partnering transaction within the prescribed timeframe, or upon the exercise of a redemption right in connection with our partnering transaction, we will be required to provide for payment of claims of creditors that were not waived that may be brought against us within the 10 years following redemption. Accordingly, the per-share redemption amount received by public stockholders could be less than the $10.00 per share initially held in the trust account, due to claims of such creditors.

Our sponsor will agree that it will be liable to us if and to the extent any claims by a third party (other than our independent registered public accounting firm) for services rendered or products sold to us, or a prospective target business with which we have discussed entering into a transaction agreement, reduce the amount of funds in the trust account to below the lesser of: (1) $10.00 per public share; and (2) such lesser amount per public share held in the trust account as of the date of the liquidation of the trust account due to reductions in the value of the trust assets, in each case net of the amount of interest which may be withdrawn to pay taxes, except as to any claims by a third party who executed a waiver of any and all rights to seek access to the trust account and except as to any claims under our indemnity of the underwriters of this offering against certain liabilities, including liabilities under the Securities Act. Moreover, in the event that an executed waiver is deemed to be unenforceable against a third party, our sponsor will not be responsible to the extent of any liability for such third-party claims. We have not independently verified whether our sponsor, which is a newly formed entity, has sufficient funds to satisfy its indemnity obligations and believe that our sponsor’s only assets are securities of our company and, therefore, our sponsor may not be able to satisfy those obligations. We have not asked our sponsor to reserve for such obligations. Therefore, we cannot assure you that our sponsor would be able to satisfy those obligations. As a result, if any such claims were successfully made against the trust account, the funds available for our partnering transaction and redemptions could be reduced to less than $10.00 per public share. In such event, we may not be able to complete our partnering transaction, and you would receive such lesser amount per share in connection with any redemption of your public shares. None of our officers or directors will indemnify us for claims by third parties including, without limitation, claims by vendors and prospective target businesses.

Our independent directors may decide not to enforce the indemnification obligations of our sponsor, resulting in a reduction in the amount of funds in the trust account available for distribution to our public stockholders.

In the event that the proceeds in the trust account are reduced below the lesser of: (1) $10.00 per public share; and (2) such lesser amount per public share held in the trust account as of the date of the liquidation of the trust account due to reductions in the value of the trust assets, in each case net of the amount of interest

 

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which may be withdrawn to pay taxes, and our sponsor asserts that it is unable to satisfy its obligations or that it has no indemnification obligations related to a particular claim, our independent directors would determine whether to take legal action against our sponsor to enforce its indemnification obligations. While we currently expect that our independent directors would take legal action on our behalf against our sponsor to enforce its indemnification obligations to us, it is possible that our independent directors in exercising their business judgment may choose not to do so in certain instances. For example, the cost of such legal action may be deemed by the independent directors to be too high relative to the amount recoverable or the independent directors may determine that a favorable outcome is not likely. If our independent directors choose not to enforce these indemnification obligations, the amount of funds in the trust account available for distribution to our public stockholders may be reduced below $10.00 per share.

The securities in which we invest the funds held in the trust account could bear a negative rate of interest, which could reduce the value of the assets held in trust such that the per-share redemption amount received by public stockholders may be less than $10.00 per share.

The net proceeds of this offering and certain proceeds from the sale of the private placement units, in the amount of $300,000,000, will be held in the trust account and will be invested only in United States 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 that invest only in direct United States government treasury obligations. While short-term United States government treasury obligations currently yield a positive rate of interest, they have briefly yielded negative interest rates in recent years. Central banks in Europe and Japan pursued interest rates below zero in recent years, and the Open Market Committee of the Federal Reserve has not ruled out the possibility that it may in the future adopt similar policies in the United States. In the event that we do not complete our partnering transaction within the allotted time frame or make certain amendments to our amended and restated certificate of incorporation, our public stockholders are entitled to receive their pro-rata share of the proceeds held in the trust account, plus any interest income, net of taxes paid or payable (less, in the case we are unable to complete our partnering transaction, $100,000 of interest). Negative interest rates could reduce the value of the assets held in trust such that the per-share redemption amount received by public stockholders may be less than $10.00 per share.

If, after we distribute the proceeds in the trust account to our public stockholders, we file a bankruptcy petition or an involuntary bankruptcy petition is filed against us that is not dismissed, a bankruptcy court may seek to recover such proceeds, and the members of our board of directors may be viewed as having breached their fiduciary duties to our creditors, thereby exposing the members of our board of directors and us to claims of punitive damages.

If, after we distribute the proceeds in the trust account to our public stockholders, we file a bankruptcy petition or an involuntary bankruptcy petition is filed against us that is not dismissed, any distributions received by stockholders could be viewed under applicable debtor/creditor and/or bankruptcy laws as either a “preferential transfer” or a “fraudulent conveyance.” As a result, a bankruptcy court could seek to recover some or all amounts received by our stockholders. In addition, our board of directors may be viewed as having breached its fiduciary duty to our creditors and/or having acted in bad faith by paying public stockholders from the trust account prior to addressing the claims of creditors, thereby exposing itself and us to claims of punitive damages.

If, before distributing the proceeds in the trust account to our public stockholders, we file a bankruptcy petition or an involuntary bankruptcy petition is filed against us that is not dismissed, the claims of creditors in such proceeding may have priority over the claims of our stockholders and the per-share amount that would otherwise be received by our stockholders in connection with any liquidation may be reduced.

If, before distributing the proceeds in the trust account to our public stockholders, we file a bankruptcy petition or an involuntary bankruptcy petition is filed against us that is not dismissed, the proceeds held in the

 

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trust account could be subject to applicable bankruptcy law, and may be included in our bankruptcy estate and subject to the claims of third parties with priority over the claims of our stockholders. To the extent any bankruptcy claims deplete the trust account, the per-share amount that would otherwise be received by our public stockholders in connection with any liquidation would be reduced.

If we are deemed to be an investment company under the Investment Company Act, we may be required to institute burdensome compliance requirements and our activities may be restricted, which may make it difficult for us to complete our partnering transaction.

If we are deemed to be an investment company under the Investment Company Act, our activities may be restricted, including:

 

   

restrictions on the nature of our investments; and

 

   

restrictions on the issuance of securities;

each of which may make it difficult for us to complete our partnering transaction.

In addition, we may have imposed upon us burdensome requirements, including:

 

   

registration as an investment company with the SEC;

 

   

adoption of a specific form of corporate structure; and

 

   

reporting, record keeping, voting, proxy and disclosure requirements and compliance with other rules and regulations that we are currently not subject to.

In order not to be regulated as an investment company under the Investment Company Act, unless we can qualify for an exclusion, we must ensure that we are engaged primarily in a business other than investing, reinvesting or trading of securities and that our activities do not include investing, reinvesting, owning, holding or trading “investment securities” constituting more than 40% of our total assets (exclusive of United States government securities and cash items) on an unconsolidated basis. Our business will be to identify and complete a partnering transaction and thereafter to operate the post-transaction business or assets for the long term. We do not plan to buy businesses or assets with a view to resell or profit from their resale. We do not plan to buy unrelated businesses or assets or to be a passive investor.

We do not believe that our anticipated principal activities will subject us to the Investment Company Act. To this end, the proceeds held in the trust account may only be invested in United States “government securities” within the meaning of Section 2(a)(16) of the Investment Company Act having a maturity of 185 days or less or in money market funds meeting certain conditions under Rule 2a-7 promulgated under the Investment Company Act that invest only in direct United States government treasury obligations. Pursuant to the trust agreement, the trustee is not permitted to invest in other securities or assets. By restricting the investment of the proceeds to these instruments, and by having a business plan targeted at acquiring and growing businesses for the long term (rather than on buying and selling businesses in the manner of a merchant bank or private equity fund), we intend to avoid being deemed an “investment company” within the meaning of the Investment Company Act. This offering is not intended for persons who are seeking a return on investments in government securities or investment securities. The trust account is intended as a holding place for funds pending the earliest to occur of: (i) the completion of our primary business objective, which is a partnering transaction; (ii) the redemption of any public shares properly submitted in connection with a stockholder vote to amend our amended and restated certificate of incorporation (A) to modify the substance or timing of our obligation to allow redemptions in connection with our partnering transaction or to redeem 100% of our public shares if we do not complete our partnering transaction within 24 months from the closing of this offering (or 27 months following an agreement in principle event) or (B) with respect to any other provision relating to stockholders’ rights or pre-partnering transaction activity; and (iii) absent a partnering transaction, our return of

 

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the funds held in the trust account to our public stockholders as part of our redemption of the public shares. If we do not invest the proceeds as discussed above, we may be deemed to be subject to the Investment Company Act. If we were deemed to be subject to the Investment Company Act, compliance with these additional regulatory burdens would require additional expenses for which we have not allotted funds and may hinder our ability to consummate our partnering transaction. If we are unable to complete our partnering transaction, our public stockholders may receive only approximately $10.00 per share on the liquidation of our trust account and our warrants will expire worthless. In certain circumstances, our public stockholders may receive less than $10.00 per share on the redemption of their shares. See “— If third parties bring claims against us, the proceeds held in the trust account could be reduced and the per-share redemption amount received by stockholders may be less than $10.00 per share” and other risk factors herein.

Changes in laws or regulations, or a failure to comply with any laws and regulations, may adversely affect our business, including our ability to negotiate and complete our partnering transaction, and results of operations.

We are subject to laws and regulations enacted by national, regional and local governments. In particular, we will be required to comply with certain SEC and other legal requirements. Compliance with, and monitoring of, applicable laws and regulations may be difficult, time consuming and costly. Those laws and regulations and their interpretation and application may also change from time to time and those changes could have a material adverse effect on our business, investments and results of operations. In addition, a failure to comply with applicable laws or regulations, as interpreted and applied, could have a material adverse effect on our business, including our ability to negotiate and complete our partnering transaction, and results of operations.

If we have not completed our partnering transaction within 24 months of the closing of this offering or during any subsequent Extension Period, our public stockholders may be forced to wait beyond such 24 months before redemption from our trust account.

If we have not completed our partnering transaction within 24 months from the closing of this offering (or 27 months following an agreement in principle event), we will distribute the aggregate amount then on deposit in the trust account, including interest (less up to $100,000 of interest to pay dissolution expenses and which interest shall be net of taxes payable), pro rata to our public stockholders by way of redemption and cease all operations except for the purposes of winding up of our affairs, as further described herein. Any redemption of public stockholders from the trust account shall be effected automatically by function of our amended and restated certificate of incorporation prior to any voluntary winding up. If we are required to wind up, liquidate the trust account and distribute such amount therein, pro rata, to our public stockholders, as part of any liquidation process, such winding up, liquidation and distribution must comply with the applicable provisions of the General Corporation Law of the State of Delaware (the “DGCL”). In that case, investors may be forced to wait beyond the initial 24 months (or 27 months following an agreement in principle event) before the redemption proceeds of our trust account become available to them and they receive the return of their pro rata portion of the proceeds from our trust account. We have no obligation to return funds to investors prior to the date of our redemption or liquidation unless, prior thereto, we consummate our partnering transaction or amend certain provisions of our amended and restated certificate of incorporation and then only in cases where investors have properly sought to redeem their shares of Series A common stock. Only upon our redemption or any liquidation will public stockholders be entitled to distributions if we have not completed our partnering transaction within the required time period or do not amend certain provisions of our amended and restated certificate of incorporation prior thereto.

Our stockholders may be held liable for claims by third parties against us to the extent of distributions received by them upon redemption of their shares.

Under the DGCL, stockholders may be held liable for claims by third parties against a corporation to the extent of distributions received by them in a dissolution. The pro rata portion of our trust account distributed to

 

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our public stockholders upon the redemption of our public shares in the event we do not complete our partnering transaction within the required time period may be considered a liquidating distribution under Delaware law. If a corporation complies with certain procedures set forth in Section 280 of the DGCL intended to ensure that it makes reasonable provision for all claims against it, including a 60-day notice period during which any third-party claims can be brought against the corporation, a 90-day period during which the corporation may reject any claims brought, and an additional 150-day waiting period before any liquidating distributions are made to stockholders, any liability of stockholders with respect to a liquidating distribution is limited to the lesser of such stockholder’s pro rata share of the claim or the amount distributed to the stockholder, and any liability of the stockholder would be barred after the third anniversary of the dissolution. However, it is our intention to redeem our public shares as soon as reasonably possible following the 24th month (or 27th month following an agreement in principle event) from the closing of this offering (or the end of any Extension Period) in the event we do not complete our partnering transaction and, therefore, we do not intend to comply with the foregoing procedures.

Because we do not intend to comply with Section 280, Section 281(b) of the DGCL requires us to adopt a plan, based on facts known to us at such time, that will provide for our payment of all existing and pending claims or claims that may be potentially brought against us within the 10 years following our dissolution. However, because we are a blank check company, rather than an operating company, and our operations will be limited to searching for prospective target businesses to acquire, the only likely claims to arise would be from our vendors (such as lawyers, investment bankers, consultants, etc.) or prospective target businesses. If our plan of distribution complies with Section 281(b) of the DGCL, any liability of stockholders with respect to a liquidating distribution is limited to the lesser of such stockholder’s pro rata share of the claim or the amount distributed to the stockholder, and any liability of the stockholder would likely be barred after the third anniversary of the dissolution. We cannot assure you that we will properly assess all claims that may be potentially brought against us. As such, our stockholders could potentially be liable for any claims to the extent of distributions received by them (but no more) and any liability of our stockholders may extend beyond the third anniversary of such date. Furthermore, if the pro rata portion of our trust account distributed to our public stockholders upon the redemption of our public shares in the event we do not complete our partnering transaction within the required time period is not considered a liquidating distribution under Delaware law and such redemption distribution is deemed to be unlawful, then pursuant to Section 174 of the DGCL, the statute of limitations for claims of creditors could then be six years after the unlawful redemption distribution, instead of three years, as in the case of a liquidating distribution.

We may not hold an annual meeting of stockholders until after the completion of our partnering transaction and you will not be entitled to any of the corporate protections provided by such a meeting.

We may not hold an annual meeting of stockholders until after we consummate our partnering transaction (unless required by NYSE) and thus may not be in compliance with Section 211(b) of the DGCL, which requires an annual meeting of stockholders be held for the purposes of electing directors in accordance with a company’s bylaws unless such election is made by written consent in lieu of such a meeting. Therefore, if our stockholders want us to hold an annual meeting prior to our completion of our partnering transaction, they may attempt to force us to hold one by submitting an application to the Delaware Court of Chancery in accordance with Section 211(c) of the DGCL. Until we hold an annual meeting of stockholders, public stockholders may not be afforded the opportunity to discuss company affairs with management.

The grant of registration rights to our sponsor and its permitted transferees may make it more difficult to complete our partnering transaction, and the future exercise of such rights may adversely affect the market price of our Series A common stock.

Pursuant to an investor rights agreement and a forward purchase agreement to be entered into on or prior to the closing of this offering, at or after the time of our partnering transaction, our sponsor and/or its permitted transferees can demand that we register the resale of the private placement shares, the private

 

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placement warrants, the forward purchase warrants, shares and warrants underlying the units that may be issued upon conversion of working capital loans and shares of Series A common stock issuable upon (1) conversion of the founder shares, (2) exercise of the private placement warrants, (3) conversion of the forward purchase shares, (4) exercise of the forward purchase warrants and (5) exercise of private placement warrants underlying the private placement units issued upon conversion of working capital loans (if any). We will bear the cost of registering these securities. The registration and availability of such a significant number of securities for trading in the public market may have an adverse effect on the market price of our Series A common stock.

The existence of the registration rights may make our partnering transaction more costly or difficult to complete. This is because the stockholders of the target business may increase the equity stake they seek in the combined entity or ask for more cash consideration to offset the negative impact on the market price of our Series A common stock that is expected when the securities owned by our sponsor or its permitted transferees are registered for resale.

Because we are neither limited to evaluating target businesses in a particular industry, sector or geographic area nor have we selected any specific target businesses with which to pursue our partnering transaction, you will be unable to ascertain the merits or risks of any particular target business’s operations.

Although we expect to focus on the consumer packaged goods industry, we may seek to complete a partnering transaction with an operating company in any industry, sector or geographic area. However, we will not, under our amended and restated certificate of incorporation, be permitted to effectuate our partnering transaction solely with another blank check company or similar company with nominal operations. Because we have not yet selected or approached any specific target business with respect to a partnering transaction, there is no basis to evaluate the possible merits or risks of any particular target business’s operations, results of operations, cash flows, liquidity, financial condition or prospects. To the extent we complete our partnering transaction, we may be affected by numerous risks inherent in the business operations with which we combine. For example, if we combine with a financially unstable business or an entity lacking an established record of sales or earnings, we may be affected by the risks inherent in the business and operations of a financially unstable or a development stage entity. Although our officers and directors will endeavor to evaluate the risks inherent in a particular target business, we cannot assure you that we will properly ascertain or assess all of the significant risk factors or that we will have adequate time to complete due diligence. Furthermore, some of these risks may be outside of our control and leave us with no ability to control or reduce the chances that those risks will adversely impact a target business. We also cannot assure you that an investment in our units will ultimately prove to be more favorable to investors than a direct investment, if such opportunity were available, in a partnering transaction target. Accordingly, any stockholders or warrant holders who choose to remain a stockholder or warrant holder following our partnering transaction could suffer a reduction in the value of their securities. Such stockholders or warrant holders are unlikely to have a remedy for such reduction in value.

We may seek acquisition opportunities in industries or sectors that may be outside of our management team’s areas of expertise.

We will consider a partnering transaction outside of our management team’s areas of expertise if such partnering transaction candidate is presented to us and we determine that such candidate offers an attractive acquisition opportunity for our company. In the event we elect to pursue an acquisition outside of the areas of our management team’s expertise, our management team’s expertise may not be directly applicable to its evaluation or operation, and the information contained in this prospectus regarding the areas of our management team’s expertise would not be relevant to an understanding of the business that we elect to acquire. As a result, our management may not be able to adequately ascertain or assess all of the significant risk factors relevant to such acquisition. Accordingly, any stockholders or warrant holders who choose to remain a

 

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stockholder or warrant holder following our partnering transaction could suffer a reduction in the value of their securities. Such stockholders or warrant holders are unlikely to have a remedy for such reduction in value.

Although we have identified general criteria and guidelines that we believe are important in evaluating prospective target businesses, we may enter into our partnering transaction with a target that does not meet such criteria and guidelines, and as a result, the target business with which we enter into our partnering transaction may not have attributes entirely consistent with our general criteria and guidelines.

Although we have identified general criteria and guidelines for evaluating prospective target businesses, it is possible that a target business with which we enter into our partnering transaction will not have all of these positive attributes. If we complete our partnering transaction with a target that does not meet some or all of these criteria and guidelines, such combination may not be as successful as a combination with a business that does meet all of our general criteria and guidelines. In addition, if we announce a prospective partnering transaction with a target that does not meet our general criteria and guidelines, a greater number of stockholders may exercise their redemption rights, which may make it difficult for us to meet any closing condition with a business that requires us to have a minimum net worth or a certain amount of cash. In addition, if stockholder approval of the transaction is required by applicable law or stock exchange rule, or we decide to obtain stockholder approval for business or other reasons, it may be more difficult for us to attain stockholder approval of our partnering transaction if the target business does not meet our general criteria and guidelines. If we are unable to complete our partnering transaction, our public stockholders may receive only approximately $10.00 per share, or less in certain circumstances, on the liquidation of our trust account and our warrants will expire worthless.

We may seek acquisition opportunities with an early stage company, a financially unstable business or an entity lacking an established record of revenue or earnings, which could subject us to volatile revenues or earnings, intense competition and difficulties in obtaining and retaining key personnel.

To the extent we complete our partnering transaction with an early stage company, a financially unstable business or an entity lacking an established record of sales or earnings, we may be affected by numerous risks inherent in the operations of the business with which we combine. These risks include investing in a business without a proven business model and with limited historical financial data, volatile revenues or earnings, intense competition and difficulties in obtaining and retaining key personnel. Although our officers and directors will endeavor to evaluate the risks inherent in a particular target business, we may not be able to properly ascertain or assess all of the significant risk factors. Furthermore, some of these risks may be outside of our control and leave us with no ability to control or reduce the chances that those risks will adversely impact a target business.

As the number of special purpose acquisition companies evaluating targets increases, attractive targets may become scarcer and there may be more competition for attractive targets. This could increase the cost of our partnering transaction and could even result in our inability to find a target or to consummate a partnering transaction.

In recent years, the number of special purpose acquisition companies that have been formed has increased substantially. Many potential targets for special purpose acquisition companies have already entered into a partnering transaction, and there are still many special purpose acquisition companies preparing for an initial public offering, as well as many such companies currently in registration. As a result, at times, fewer attractive targets may be available to consummate a partnering transaction.

In addition, because there are more special purpose acquisition companies seeking to enter into a partnering transaction with available targets, the competition for available targets with attractive fundamentals or business models may increase, which could cause targets companies to demand improved financial terms. Attractive deals could also become scarcer for other reasons, such as economic or industry sector downturns,

 

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geopolitical tensions, or increases in the cost of additional capital needed to close partnering transactions or operate targets post-partnering transaction. This could increase the cost of, delay or otherwise complicate or frustrate our ability to find and consummate a partnering transaction, and may result in our inability to consummate a partnering transaction on terms favorable to our investors altogether.

We are not required to obtain an opinion from an independent investment banking firm or from an independent accounting firm regarding fairness, and consequently, you may have no assurance from an independent source that the price we are paying for the business is fair to our company from a financial point of view.

Unless we complete our partnering transaction with an affiliated entity, we are not required to obtain an opinion from an independent investment banking firm or another accounting, valuation or appraisal firm that such partnering transaction is fair to our company from a financial point of view. If no opinion is obtained, our stockholders will be relying on the judgment of our board of directors, who will determine fair market value based on standards generally accepted by the financial community. Such standards used will be disclosed in our tender offer documents or proxy solicitation materials, as applicable, related to our partnering transaction.

We may issue additional shares of common stock or preferred stock to complete our partnering transaction or under an employee incentive plan after completion of our partnering transaction. Any such issuances would dilute the interest of our stockholders and likely present other risks.

Our amended and restated certificate of incorporation will authorize the issuance of up to 500,000,000 shares of Series A common stock, par value $0.0001 per share, 80,000,000 shares of Series B common stock, par value $0.0001 per share, 40,000,000 shares of Series C common stock, par value $0.0001 per share, and 40,000,000 shares of Series F common stock, par value $0.0001 per share, and 10,000,000 shares of undesignated preferred stock, par value $0.0001 per share. Immediately after this offering, there will be 458,666,667 and 32,500,000 (assuming in each case, that the underwriters have not exercised their over-allotment option) authorized but unissued shares of Series A and Series F common stock available, respectively, for issuance, which amount takes into account shares reserved for issuance upon exercise of outstanding warrants but not upon the issuance of Series B common stock upon the conversion of the Series F common stock or the issuance of Series A common stock upon the conversion of such Series B common stock or any securities issuable pursuant to the forward purchase agreement (including shares issuable upon exercise of forward purchase warrants). Shares of Series F common stock will automatically convert at the time of our partnering transaction, or earlier at the option of the holder, into shares of Series B common stock on a one-for-one basis and following our partnering transaction each share of Series B common stock entitles the holder to ten votes per share. Prior to and following our partnering transaction, each share of Series B common stock is convertible, at the option of the holder, into one share of our Series A common stock. Immediately after this offering, there will be no shares of Series B common stock, Series C common stock or preferred stock outstanding.

In connection with our partnering transaction, we have agreed to issue to our sponsor 10,000,000 forward purchase units consisting of one share of Series B common stock and one-third of a forward purchase warrant. We may issue a substantial number of additional shares of common stock or preferred stock in order to complete our partnering transaction or under an employee incentive plan after completion of our partnering transaction. We may also issue shares of Series A common stock in connection with the redemption of warrants as described in “Description of Securities — Warrants — Public Stockholders’ Warrants — Redemption of warrants when the price per share of Series A common stock equals or exceeds $18.00.” However, our amended and restated certificate of incorporation will provide, among other things, that prior to our partnering transaction, we may not issue additional shares of capital stock that would entitle the holders thereof to (1) receive funds from the trust account or (2) vote pursuant to our amended and restated certificate of incorporation on any partnering transaction. The issuance of additional shares of common or preferred stock, including pursuant to the forward purchase agreement:

 

   

may significantly dilute the equity interest and voting power of investors in this offering;

 

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may subordinate the rights of holders of common stock if preferred stock is issued with rights senior to those afforded our common stock;

 

   

could cause a change of control if a substantial number of shares of our common stock is issued, which may affect, among other things, our ability to use our net operating loss carry forwards, if any, and could result in the resignation or removal of our present officers and directors;

 

   

may have the effect of delaying or preventing a change of control of us by diluting the stock ownership or voting rights of a person seeking to obtain control of us;

 

   

may adversely affect prevailing market prices for our units, Series A common stock and/or warrants; and

 

   

may not result in adjustment to the exercise price of our warrants.

Resources could be wasted in researching acquisitions that are not completed, which could materially adversely affect subsequent attempts to locate and acquire or merge with another business. If we are unable to complete our partnering transaction, our public stockholders may receive only approximately $10.00 per share, or less than such amount in certain circumstances, on the liquidation of our trust account and our warrants will expire worthless.

We anticipate that the investigation of each specific target business and the negotiation, drafting and execution of relevant agreements, disclosure documents and other instruments will require substantial management time and attention and substantial costs for accountants, attorneys and others. If we decide not to complete a specific partnering transaction, the costs incurred up to that point for the proposed transaction likely would not be recoverable. Furthermore, if we reach an agreement relating to a specific target business, we may fail to complete our partnering transaction for any number of reasons including those beyond our control. Any such event will result in a loss to us of the related costs incurred which could materially adversely affect subsequent attempts to locate and acquire or merge with another business. If we are unable to complete our partnering transaction, our public stockholders may receive only approximately $10.00 per share, or less in certain circumstances, on the liquidation of our trust account and our warrants will expire worthless. See “— If third parties bring claims against us, the proceeds held in the trust account could be reduced and the per-share redemption amount received by stockholders may be less than $10.00 per share” and other risk factors herein.

Our company has overlapping directors and management with multiple entities, each of which may lead to conflicting interests. Additionally, certain of our officers and directors have, and in the future may have, additional fiduciary or contractual obligations to one or more other entities, including, in certain cases, to Post, which may lead to additional conflicting interests.

All of our officers also serve as officers of one or more of the related companies, and there are overlapping directors with such entities. Our officers and members of our board of directors have fiduciary duties to our stockholders. Likewise, any such persons who serve in similar capacities at any of the related companies have fiduciary duties to that company’s stockholders. Therefore, such persons may have conflicts of interest or the appearance of conflicts of interest with respect to matters involving or affecting us and one or more of the related companies to which they owe fiduciary duties.

As described under “Management — Conflicts of Interest,” each of our officers and directors has, and any of them in the future may have, additional fiduciary or contractual obligations to one or more other entities pursuant to which such officer or director may be required to present a partnering transaction opportunity to such entities before he or she presents such opportunity to us. Also, none of Post, our sponsor or any of our directors and officers is prohibited from sponsoring, investing or otherwise becoming involved with, any other blank check companies, including in connection with their partnering transactions. Accordingly, if any of our officers or directors becomes aware of a partnering transaction opportunity to which he or she has then-current fiduciary or contractual obligations to present such opportunity to another entity, including, in certain cases to

 

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Post, he or she may only present such opportunity to us if such other entity, including, in certain cases, to Post, rejects the opportunity. Our amended and restated certificate of incorporation will provide that we renounce our interest in any corporate opportunity offered to any director or officer unless such opportunity is expressly offered to such person solely in his or her capacity as a director or officer of our company, such opportunity is one we are legally and contractually permitted to undertake and would otherwise be reasonable for us to pursue, and such person has no fiduciary or contractual obligation to present the opportunity to any other person or entity, including, in certain cases, to Post. Additionally, none of Post, our sponsor or any other entity currently has any obligation or duty to provide us with any potential partnering transaction opportunity.

One or more of the related companies may compete with us for acquisition opportunities. If these entities decide to pursue any such opportunities, we may be precluded from procuring such opportunities. In addition, investment ideas generated within Post may be suitable for both us and for one or more other entities and may be directed to such entity rather than to us.

Post is a consumer packaged goods holding company operating in the center-of-the-store, refrigerated, foodservice, food ingredient and convenient nutrition food categories. Post also participates in the private brand food category. Conflicts may arise from Post’s indirect ownership of our company, as well as from actions undertaken by any its subsidiaries. Post and its subsidiaries may compete with us for acquisition opportunities that fall within Post’s investment objectives or strategies. A decision by Post to pursue an opportunity would preclude us from pursuing it and could have a negative impact on our ability to complete our partnering transaction. Additionally, Post may take commercial steps which may have an adverse effect on us, including with respect to any target we acquire in the partnering transaction.

Moreover, most of our directors and officers continue to own stock and options to purchase stock in one or more of the related companies. These ownership interests and/or such disparity could create, or appear to create, potential conflicts of interest when the applicable individuals are faced with decisions that could have different implications for our company and the related companies.

Furthermore, we may enter into transactions with one or more of the related companies. While any potential conflict that qualifies as a “related party transaction” (as defined in Item 404 of Regulation S-K under the Securities Act) is subject to review by an independent committee of the applicable issuer’s board of directors in accordance with its corporate governance guidelines, there can be no assurance that the terms of any such transactions will be as favorable to us as would be the case where there is no overlapping officer or director. See “— We may engage in a partnering transaction with one or more target businesses that may be owned by our sponsor or one or more of the related companies, or its or their officers or directors, which may raise potential conflicts of interest.”

We are dependent upon our executive officers and directors who must allocate their time among our business and other businesses. The departure of our executive officers or directors or conflicts of interest in their determination as to how much time to devote to our affairs could have a negative impact on our ability to complete our partnering transaction.

Our operations are dependent upon a relatively small group of individuals. We believe that our success depends on the continued service of our officers and directors, at least until we have completed our partnering transaction. Our officers and directors are not required to, and will not, commit their full time to our affairs, which may result in a conflict of interest in allocating their time between our operations, including our search for a partnering transaction, and these other businesses. We do not intend to have any full-time employees prior to the completion of our partnering transaction, nor do we have any employment agreement with, or key-man insurance on the life of, any of our directors or officers. The unexpected loss of the services of one or more of our directors or officers could have a detrimental effect on us.

In addition, certain of our officers and directors are employed by or otherwise provide services to Post or other companies that may make investments in, or operate in, industries we may target for our partnering

 

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transaction. Our independent directors also serve as officers and board members for other entities. If our officers’ and directors’ other business affairs require them to devote substantial amounts of time to such affairs, it could limit their ability to devote time to our affairs which may have a negative impact on our ability to complete our partnering transaction. For a complete discussion of our officers’ and directors’ other business affairs, see “Management — Conflicts of Interest.”

From time to time, we and members of our management team may be subject to legal proceedings, regulatory disputes, and governmental inquiries that could cause us to incur significant expenses, divert our management’s attention, and materially harm our financial condition.

From time to time, we may be subject to claims, lawsuits, government investigations, and other proceedings involving competition and antitrust, securities, tax, commercial disputes, and other matters that could adversely affect our financial condition. Litigation and regulatory proceedings may be protracted and expensive, and the results are difficult to predict. Additionally, such litigation and regulatory proceedings require a great deal of financial resources and attention from us and our management team. Adverse outcomes with respect to litigation or any of these legal proceedings may result in significant settlement costs or judgments, or penalties and fines, and could negatively affect our ability to identify and complete a partnering transaction and may have an adverse effect on the price of our securities.

Members of our management team have been involved in a wide variety of businesses. Such involvement has, and may lead to, media coverage and public awareness. As a result, members of our management team and the related companies may from time to time be involved in civil disputes or governmental investigations unrelated to our business. Any such claims or investigations may be detrimental to our reputation and could negatively affect our ability to identify and complete a partnering transaction and may have an adverse effect on the price of our securities.

Our officers, directors and security holders may have competitive pecuniary interests that conflict with our interests.

We have not adopted a policy that expressly prohibits our directors, officers, security holders or any other entities from having a direct or indirect pecuniary or financial interest in any investment to be acquired or disposed of by us or in any transaction to which we are a party or have an interest. In fact, we may enter into a partnering transaction with a business that is owned by our sponsor or any of the related companies, or its or their officers or directors, or make the acquisition through a joint venture or other form of shared ownership with our sponsor or any of the related companies, or its or their officers or directors, although we do not intend to do so. Nor do we have a policy that expressly prohibits any such persons from engaging for their own account in business activities of the types conducted by us. Accordingly, such persons or entities may have a conflict between their interests and ours.

In particular, the related companies have invested, and may in the future invest, in a broad array of industries, including the consumer packaged goods industry. As a result, there may be substantial overlap between companies that would be a suitable partnering transaction for us and companies that would make an attractive target for such entities.

We may engage in a partnering transaction with one or more target businesses that may be owned by our sponsor or one or more of the related companies, or its or their officers or directors, which may raise potential conflicts of interest.

In light of the involvement of our sponsor, officers and directors with other businesses, we may decide to acquire one or more businesses owned by our sponsor or any of the related companies, or its or their officers or directors, or make the acquisition through a joint venture or other form of shared ownership with our sponsor or any of the related companies, or its or their officers or directors. Any such parties may co-invest with us in the

 

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target business at the time of our partnering transaction, or we could raise additional proceeds to complete the acquisition by making a future issuance to any such parties, which may give rise to certain conflicts of interest. Our officers and directors also serve as officers and board members for other entities, including, without limitation, those described under “Management — Conflicts of Interest.” Such entities may compete with us for partnering transaction opportunities. Our sponsor is not currently aware of any specific opportunities for us to complete our partnering transaction with any such entities, and we have not, nor has anyone on our behalf, engaged in substantive discussions, directly or indirectly, with any such entity or entities with respect to a partnering transaction with us. Although we will not be specifically focusing on, or targeting, any transaction with any such entities, we would pursue such a transaction if we determined that such an entity met our criteria for a partnering transaction as set forth in “Proposed Business — Effecting our Partnering Transaction — Selection of a Target Business and Structuring of our Partnering Transaction” and such transaction was approved by a majority of our independent and disinterested directors. While we are not required to obtain an opinion regarding the fairness to our company from a financial point of view of a partnering transaction with one or more domestic or international businesses owned by the related companies, or any of their subsidiaries, or our sponsor, or its or their officers or directors, in the event we do not obtain such an opinion, potential conflicts of interest still may exist and, as a result, the terms of the partnering transaction may not be as advantageous to our public stockholders as they would be absent any conflicts of interest.

Since our sponsor will lose its entire investment in us if our partnering transaction is not completed (other than with respect to any public shares it may hold), a conflict of interest may arise in determining whether a particular partnering transaction target is appropriate for our partnering transaction.

In January 2021, our sponsor purchased an aggregate of 11,500,000 founder shares for an aggregate purchase price of $25,000, with a purchase price of approximately $0.002 per share. On April 8, 2021, our sponsor surrendered 2,875,000 founder shares to us for no consideration resulting in an aggregate of 8,625,000 founder shares outstanding (up to 1,125,000 founder shares are subject to forfeiture by our sponsor depending on the extent to which the underwriters’ over-allotment option is exercised). As a result of such surrender, the per-share purchase price increased to approximately $0.003 per share. The founder shares will be worthless if we do not complete a partnering transaction.

Our sponsor will commit, pursuant to a written agreement, to purchase an aggregate of 1,000,000 private placement units (or 1,090,000 if the underwriters’ over-allotment option is exercised in full) at a price of $10.00 per unit ($10,000,000 in the aggregate or $10,900,000 in the aggregate if the underwriters’ over-allotment option is exercised in full) in a private placement that will close simultaneously with the closing of this offering.

Members of our management team may directly or indirectly own securities following this offering, including founder shares, and the personal and financial interests of our officers and directors may influence their motivation in identifying and selecting a target partnering transaction, completing a partnering transaction and influencing the operation of the business following the partnering transaction. This risk may become more acute as the deadline for completing our partnering transaction nears.

We may issue notes or other debt securities, or otherwise incur substantial debt, to complete a partnering transaction, which may adversely affect our leverage and financial condition and thus negatively impact the value of our stockholders’ investment in us.

Although we have no commitments as of the date of this prospectus to issue any notes or other debt securities, or to otherwise incur outstanding debt following this offering, we may choose to incur substantial debt to complete our partnering transaction. We have agreed that we will not incur any indebtedness unless we have obtained from the lender a waiver of any right, title, interest or claim of any kind in or to the monies held

 

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in the trust account. As such, no issuance of debt will affect the per-share amount available for redemption from the trust account. Nevertheless, the incurrence of debt could have a variety of negative effects, including:

 

   

default and foreclosure on our assets if our operating revenues after a partnering transaction 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 common stock;

 

   

using a substantial portion of our cash flow to pay principal and interest on our debt, which will reduce the funds available for dividends on our common stock if declared, expenses, capital expenditures, acquisitions and other general corporate purposes;

 

   

limitations on our flexibility in planning for and reacting to changes in our business and in the industry in which we operate;

 

   

increased vulnerability to adverse changes in general economic, industry and competitive conditions and adverse changes in government regulation; and

 

   

limitations on our ability to borrow additional amounts for expenses, capital expenditures, acquisitions, debt service requirements, execution of our strategy and other purposes and other disadvantages compared to our competitors who have less debt.

We may only be able to complete one partnering transaction with the proceeds of this offering and the sale of the private placement units and forward purchase units, which will cause us to be solely dependent on a single business which may have a limited number of products or services. This lack of diversification may negatively impact our operations and profitability.

The net proceeds from this offering and the sale of the private placement units and the sale of the forward purchase units for a purchase price of $100,000,000 will provide us with $402,500,000 (or $447,500,000 if the underwriters’ over-allotment option is exercised in full) that we may use to complete our partnering transaction (which includes $10,500,000, or up to $12,075,000 if the underwriters’ over-allotment option is exercised in full, of deferred underwriting commissions being held in the trust account and estimated post-IPO working capital expenses of $2,500,000, and excludes estimated offering expenses of $1,500,000).

We may effectuate our partnering transaction with a single target business or multiple target businesses simultaneously or within a short period of time. However, we may not be able to effectuate our partnering transaction with more than one target business because of various factors, including the existence of complex accounting issues and the requirement that we prepare and file pro forma financial statements with the SEC that present operating results and the financial condition of several target businesses as if they had been operated on a combined basis. By completing our partnering transaction with only a single entity our lack of diversification may subject us to numerous economic, competitive and regulatory risks. Further, we would not be able to diversify our operations or benefit from the possible spreading of risks or offsetting of losses, unlike other entities which may have the resources to complete several partnering transactions in different industries or different areas of a single industry. Accordingly, the prospects for our success may be:

 

   

solely dependent upon the performance of a single business, property or asset; or

 

   

dependent upon the development or market acceptance of a single or limited number of products, processes or services.

 

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This lack of diversification may subject us to numerous economic, competitive and regulatory risks, any or all of which may have a substantial adverse impact upon the particular industry in which we may operate subsequent to our partnering transaction.

We may attempt to simultaneously complete partnering transactions with multiple prospective targets, which may hinder our ability to complete our partnering transaction and give rise to increased costs and risks that could negatively impact our operations and profitability.

If we determine to simultaneously acquire several businesses that are owned by different sellers, we will need for each of such sellers to agree that our purchase of its business is contingent on the simultaneous closings of the other partnering transactions, which may make it more difficult for us, and delay our ability, to complete our partnering transaction. With multiple partnering transactions, we could also face additional risks, including additional burdens and costs with respect to possible multiple negotiations and due diligence investigations (if there are multiple sellers) and the additional risks associated with the subsequent assimilation of the operations and services or products of the acquired companies in a single operating business. If we are unable to adequately address these risks, it could negatively impact our profitability and results of operations.

We may attempt to complete our partnering transaction with a private company about which little information is available, which may result in a partnering transaction with a company that is not as profitable as we suspected, if at all.

In pursuing our acquisition strategy, we may seek to effectuate our partnering transaction with a privately held company. Very little public information generally exists about private companies, and we could be required to make our decision on whether to pursue a potential partnering transaction on the basis of limited information, which may result in a partnering transaction with a company that is not as profitable as we suspected, if at all.

We do not have a specified maximum redemption threshold. The absence of such a redemption threshold may make it possible for us to complete our partnering transaction with which a substantial majority of our stockholders do not agree.

Our amended and restated certificate of incorporation will not provide a specified maximum redemption threshold, except that in no event will we redeem our public shares in an amount that would cause our net tangible assets to be less than $5,000,001 following such redemptions, or any greater net tangible asset or cash requirement that may be contained in the agreement relating to our partnering transaction. As a result, we may be able to complete our partnering transaction even though a substantial majority of our public stockholders do not agree with the transaction and have redeemed their shares or, if we seek stockholder approval of our partnering transaction and do not conduct redemptions in connection with our partnering transaction pursuant to the tender offer rules, have entered into privately negotiated agreements to sell their shares to our sponsor or any of the related companies. In the event the aggregate cash consideration we would be required to pay for all shares of common stock that are validly submitted for redemption plus any amount required to satisfy cash conditions pursuant to the terms of the proposed partnering transaction exceed the aggregate amount of cash available to us, we will not complete the partnering transaction or redeem any shares, all shares of common stock submitted for redemption will be returned to the holders thereof, and we instead may search for an alternate partnering transaction (including, potentially, with the same target).

The exercise price for the public warrants is higher than in some other blank check company offerings, and, accordingly, the warrants are more likely to expire worthless.

The exercise price of the public warrants is higher than in some other blank check companies. For example, historically, the exercise price of a warrant was often a fraction of the purchase price of the units in the initial public offering. The exercise price for our public warrants is $11.50 per share, subject to adjustments as provided herein. As a result, the warrants are less likely to ever be in the money and more likely to expire worthless.

 

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In order to effectuate a partnering transaction, blank check companies have, in the recent past, amended various provisions of their charters and modified governing instruments, including their warrant agreements. We cannot assure you that we will not seek to amend our amended and restated certificate of incorporation or governing instruments, including our warrant agreement, in a manner that will make it easier for us to complete our partnering transaction that some of our stockholders or warrant holders may not support.

In order to effectuate a partnering transaction, blank check companies have, in the recent past, amended various provisions of their charters and modified governing instruments, including their warrant agreements. For example, blank check companies have amended the definition of partnering transaction, increased redemption thresholds, extended the time to consummate a partnering transaction and, with respect to their warrants, amended their warrant agreements to require the warrants to be exchanged for cash and/or other securities. We cannot assure you that we will not seek to amend our charter or governing instruments or extend the time to consummate a partnering transaction in order to effectuate our partnering transaction.

Certain provisions of our amended and restated certificate of incorporation that relate to our pre-partnering transaction activity (and corresponding provisions of the agreement governing the release of funds from our trust account) may be amended with the approval of holders of at least 66 2/3% of the total voting power of our outstanding capital stock, which is a lower amendment threshold than that of some other blank check companies. It may be easier for us, therefore, to amend our amended and restated certificate of incorporation and the trust agreement to facilitate the completion of a partnering transaction that some of our stockholders may not support.

Some other blank check companies have a provision in their charter which prohibits the amendment of certain of its provisions, including those which relate to a company’s pre-partnering transaction activity, without approval by holders of a certain percentage of the company’s stockholders. In those companies, amendment of these provisions typically requires approval by holders holding between 90% and 100% of the company’s public shares. Our amended and restated certificate of incorporation will provide that any of its provisions (other than amendments relating to the appointment of directors prior to our partnering transaction, which require the approval of holders of more than 50% of the total voting power of the outstanding shares of our common stock entitled to vote thereon as well as more than 50% of the outstanding Series F common stock) related to pre-partnering transaction activity (including the requirement to deposit proceeds of this offering and the sale of the private placement units into the trust account and not release such amounts except in specified circumstances and to provide redemption rights to public stockholders as described herein) may be amended if approved by holders of at least 66 2/3% of the total voting power of our outstanding capital stock, and corresponding provisions of the trust agreement governing the release of funds from our trust account may be amended if approved by holders of at least 66 2/3% of the total voting power of our outstanding capital stock. Prior to our partnering transaction, the affirmative vote of holders of a majority of the outstanding shares of our Series F common stock is required to approve the election of directors. Our sponsor, who will beneficially own 20% of our outstanding capital stock upon the closing of this offering (excluding the private placement shares underlying the private placement units and assuming our sponsor does not purchase any units in this offering), may participate in any vote to amend our amended and restated certificate of incorporation and/or trust agreement and will have the discretion to vote in any manner it chooses. As a result, we may be able to amend the provisions of our amended and restated certificate of incorporation which will govern our pre-partnering transaction behavior more easily than some other blank check companies, and this may increase our ability to complete our partnering transaction with which you do not agree.

Our sponsor, executive officers and directors will agree, pursuant to a letter agreement, that they will not propose any amendment to our amended and restated certificate of incorporation (A) to modify the substance or timing of our obligation to allow redemptions in connection with our partnering transaction or to redeem 100% of our public shares if we do not complete our partnering transaction within 24 months from the closing of this offering (or 27 months following an agreement in principle event) or (B) with respect to any other provision relating to stockholders’ rights or pre-partnering transaction activity, unless we provide our public

 

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stockholders with the opportunity to redeem their shares of Series A common stock upon approval of any such amendment at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the trust account, divided by the number of then outstanding public shares. These agreements are contained in a letter agreement that we will enter into with our sponsor, executive officers and directors. Our public stockholders are not parties to, or third-party beneficiaries of, these agreements and, as a result, will not have the ability to pursue remedies against our sponsor for any breach of these agreements.

Certain agreements related to this offering may be amended without stockholder approval.

The underwriting agreement relating to this offering, the letter agreement between us and our sponsor, executive officers and directors, the investor rights agreement among us, our sponsor and Post, the forward purchase agreement between us and our sponsor and the services agreement between us and Post, may be amended without stockholder approval. For example, we may amend the services agreement upon mutual written agreement with Post. These agreements contain various provisions, including transfer restrictions on our founder shares held by our sponsor, that our public stockholders might deem to be material.

While we do not expect our board of directors to approve any amendment to any of these agreements prior to our partnering transaction, it may be possible that our board of directors, in exercising its business judgment and subject to its fiduciary duties, chooses to approve one or more amendments to any such agreement in connection with the completion of our partnering transaction. Any such amendments would not require approval from our stockholders, may result in the completion of our partnering transaction that may not otherwise have been possible, and may have an adverse effect on the value of an investment in our securities.

We may be unable to obtain additional financing to complete our partnering transaction or to fund the operations and growth of a target business, which could compel us to restructure or abandon a particular partnering transaction.

Although we believe that the net proceeds of this offering and the sale of the private placement units and forward purchase units will be sufficient to allow us to complete our partnering transaction, because we have not yet selected any target business we cannot ascertain the capital requirements for any particular transaction. If the net proceeds of this offering and the sale of the private placement units and forward purchase units prove to be insufficient, either because of the size of our partnering transaction, the depletion of the available net proceeds in search of a target business, the obligation to redeem for cash a significant number of shares from stockholders who elect redemption in connection with our partnering transaction or the terms of negotiated transactions to purchase shares in connection with our partnering transaction, we may be required to seek additional financing or to abandon the proposed partnering transaction. We cannot assure you that such financing will be available on acceptable terms, if at all. To the extent that additional financing proves to be unavailable when needed to complete our partnering transaction, we would be compelled to either restructure the transaction or abandon that particular partnering transaction and seek an alternative target business candidate. In addition, even if we do not need additional financing to complete our partnering transaction, we may require such financing to fund the operations or growth of the target business. The failure to secure additional financing could have a material adverse effect on the continued development or growth of the target business. Other than in connection with the forward purchase agreement, none of our officers, directors or stockholders is required to provide any financing to us in connection with or after our partnering transaction. If we are unable to complete our partnering transaction, our public stockholders may receive only approximately $10.00 per share, or less in certain circumstances, on the liquidation of our trust account, and our warrants will expire worthless.

 

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Our sponsor controls the election of our board of directors and hold a substantial interest in us. Additionally, holders of our Series A common stock will have limited voting rights following our partnering transaction. As a result, the sponsor will elect all of our directors prior to our partnering transaction and may exert a substantial influence on actions requiring a stockholder vote, potentially in a manner that you do not support.

Upon the closing of this offering, our sponsor will own 20% of the voting power of our common stock (excluding the private placement shares underlying the private placement units and assuming our sponsor does not purchase units in this offering). In addition, prior to our partnering transaction, only holders of our Series F common stock will have the right to appoint and elect our board of directors. Holders of our public shares will have no right to vote on the election of directors during such time. These provisions of our amended and restated certificate of incorporation may only be amended by holders of more than 50% of the total voting power of the outstanding shares of our common stock entitled to vote thereon as well as more than 50% of the outstanding Series F common stock. Additionally, following our partnering transaction, holders of our Series A common stock and holders of our Series B common stock will generally vote together as a single class on matters presented for a stockholder vote, except as required by Delaware law or stock exchange rule, with each share of Series A common stock entitling the holder to one vote per share and each share of Series B common stock entitling the holder to ten votes per share. As a result, you will not have any influence over the election of directors prior to our partnering transaction, and will have limited voting rights following our partnering transaction.

Our sponsor has no current intention to purchase additional securities, other than as disclosed in this prospectus, which may include participation in a private placement of securities or exercise of warrants. Factors that would be considered in making such additional purchases would include whether our sponsor will have majority voting power following our partnering transaction without such a purchase and consideration of the current trading price of our Series A common stock. For a discussion of risks relating to our capital structure following our partnering transaction, see — “The voting structure of our common stock will have the effect of concentrating voting power with our sponsor, which limits an investor’s ability to influence our policies and the outcome of important transactions, including a change in control.” As a result of its substantial ownership in our company, our sponsor may exert a substantial influence on other actions requiring a stockholder vote, potentially in a manner that you do not support, including amendments to our amended and restated certificate of incorporation and approval of major corporate transactions.

Our warrants and founder shares (including the voting rights thereof) of our sponsor may have an adverse effect on the market price of our Series A common stock and make it more difficult to effectuate our partnering transaction.

We will be issuing warrants to purchase 10,000,000 shares of our Series A common stock (or up to 11,500,000 shares of our Series A common stock if the underwriters’ over-allotment option is exercised in full), at a price of $11.50 per whole share (subject to adjustment as provided herein), as part of the units offered by this prospectus and, simultaneously with the closing of this offering, we will be issuing in a private placement an aggregate of 1,000,000 (or 1,090,000 if the underwriters’ over-allotment option is exercised in full) private placement units, which will have underlying warrants, each whole warrant is exercisable to purchase one share of Series A common stock at a price of $11.50 per share, and subject to adjustment as provided herein. In addition, if our sponsor, any of the related companies or certain of our officers and directors make any working capital loans, up to $2,500,000 of such loans may be converted into units, at the price of $10.000 per unit at the option of the lender. Such units would be identical to the private placement units. Any issuance of Series A common stock upon exercise of these units will increase the number of outstanding shares of our common stock and reduce the value of any common stock we may issue to complete the partnering transaction.

Furthermore, our sponsor currently holds 8,625,000 founder shares (up to 1,125,000 of which are subject to forfeiture by our sponsor depending on the extent to which the underwriters’ over-allotment option is

 

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exercised). The founder shares are convertible into shares of Series B common stock on a one-for-one basis. In connection with our partnering transaction, we have also agreed to issue to our sponsor 10,000,000 forward purchase units consisting of one share of Series B common stock and one-third of a forward purchase warrant. The issuance of shares of Series B common stock upon exercise of these conversion rights and the voting rights related to our Series B common stock could make us a less attractive acquisition vehicle to a target business. Therefore, our units and founder shares may make it more difficult to effectuate a partnering transaction or increase the cost of acquiring the target business.

Shares of Series A common stock issued pursuant to the private placement units and shares of Series B common stock issued upon conversion of the founder shares pursuant to the forward purchase agreement may significantly dilute the value and/or the voting power of the shares of Series A common stock and may make effectuating our partnering transaction more difficult.

The private placement warrants are identical to the warrants sold as part of the units in this offering except that, so long as they are held by our sponsor or its permitted transferees: (1) they will not be redeemable by us; (2) they (including the Series A common stock issuable upon exercise of these warrants) may not be transferred, assigned or sold by our sponsor until 30 days after the completion of our partnering transaction, except as described herein under “Principal Stockholders—Transfers of Founder Shares and Private Placement Units”, (3) they may be exercised by the holders on a cashless basis; and (4) the holders thereof (including with respect to the shares of common stock issuable upon exercise of these warrants) are entitled to registration rights.

To the extent we issue shares of our common stock to effectuate our partnering transaction, including those underlying the forward purchase units, the potential for the issuance of a substantial number of additional shares of our common stock upon exercise of these warrants or conversion rights could make us a less attractive acquisition vehicle to a target business. Any such issuance will increase the number of outstanding shares of our common stock and reduce the value of our common stock issued to complete the partnering transaction. Therefore, our public warrants, founder shares, private placement units and forward purchase units may make it more difficult to effectuate a partnering transaction or increase the cost of acquiring the target business.

Our warrants are expected to be accounted for as derivative liabilities and will be recorded at fair value upon issuance with changes in fair value each period included in earnings, which may have an adverse effect on the market price of our Series A common stock or may make it more difficult for us to consummate an initial partnering transaction.

We will be issuing 10,000,000 warrants (or up to 11,500,000 warrants if the underwriters’ over-allotment option is exercised in full) as part of the units offered by this prospectus and, simultaneously with the closing of this offering, we will be issuing an aggregate of 333,333 private placement warrants to our sponsor (or 363,333 private placement warrants if the underwriters’ over-allotment option is exercised in full), each exercisable to purchase one share of Series A common stock at $11.50 per share, subject to adjustment. We expect to account for both the warrants underlying the units offered by this prospectus and the private placement warrants as a warrant liability. At each reporting period (1) the accounting treatment of the warrants will be re-evaluated for proper accounting treatment as a liability or equity and (2) the fair value of the liability of the public warrants and private placement warrants will be remeasured and the change in the fair value of the liability will be recorded as other income (expense) in our income statement. The impact of changes in fair value on earnings may have an adverse effect on the market price of our Series A common stock. In addition, potential targets may seek a special purpose acquisition company that does not have warrants that are accounted for as a warrant liability, which may make it more difficult for us to consummate an initial partnering transaction with a target business.

 

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Because we must furnish our stockholders with target business financial statements, we may lose the ability to complete an otherwise advantageous partnering transaction with some prospective target businesses.

The federal proxy rules require that a proxy statement with respect to a vote on a partnering transaction meeting certain financial significance tests include historical and/or pro forma financial statement disclosure in periodic reports. We will include the same financial statement disclosure in connection with our tender offer documents, whether or not they are required under the tender offer rules. These financial statements may be required to be prepared in accordance with, or be reconciled to, accounting principles generally accepted in the United States of America, or GAAP, or international financial reporting standards as issued by the International Accounting Standards Board, or IFRS, depending on the circumstances and the historical financial statements may be required to be audited in accordance with the standards of the Public Company Accounting Oversight Board (United States), or PCAOB. These financial statement requirements may limit the pool of potential target businesses we may acquire because some targets may be unable to provide such financial statements in time for us to disclose such financial statements in accordance with federal proxy rules and complete our partnering transaction within the prescribed time frame.

Compliance obligations under the Sarbanes-Oxley Act may make it more difficult for us to effectuate our partnering transaction, require substantial financial and management resources, and increase the time and costs of completing an acquisition.

Section 404 of the Sarbanes-Oxley Act requires that we evaluate and report on our system of internal controls beginning with our Annual Report on Form 10-K for the year ending December 31, 2022. Only in the event we are deemed to be a large accelerated filer or an accelerated filer, and no longer qualify as an emerging growth company, will we be required to comply with the independent registered public accounting firm attestation requirement on our internal control over financial reporting. The fact that we are a blank check company makes compliance with the requirements of the Sarbanes-Oxley Act particularly burdensome on us as compared to other public companies because a target business with which we seek to complete our partnering transaction may not be in compliance with the provisions of the Sarbanes-Oxley Act regarding adequacy of its internal controls. The development of the internal control of any such entity to achieve compliance with the Sarbanes-Oxley Act may increase the time and costs necessary to complete any such acquisition.

Risks Relating to the Post-Partnering Transaction Company

If our management team pursues a company with operations or opportunities outside of the United States for our partnering transaction, we may face additional burdens in connection with investigating, agreeing to and completing such combination, and if we effect such partnering transaction, we would be subject to a variety of additional risks that may negatively impact our operations.

If our management team pursues a company with operations or opportunities outside of the United States for our partnering transaction, we would be subject to risks associated with cross-border partnering transactions, including in connection with investigating, agreeing to and completing our partnering transaction, conducting due diligence in a foreign market, having such transaction approved by any local governments, regulators or agencies and changes in the purchase price based on fluctuations in foreign currency exchange rates.

If we effect our partnering transaction with such a company, we would be subject to any special considerations or risks associated with companies operating in an international setting, including any of the following:

 

   

costs and difficulties inherent in managing cross-border business operations and complying with commercial and legal requirements of overseas markets;

 

   

rules and regulations regarding currency redemption;

 

   

complex corporate withholding taxes on individuals;

 

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laws governing the manner in which future partnering transactions may be effected;

 

   

tariffs and trade barriers;

 

   

regulations related to customs and import/export matters;

 

   

longer payment cycles;

 

   

changes in local regulations as part of a response to the COVID-19 outbreak or a significant outbreak of other infectious diseases;

 

   

tax consequences;

 

   

currency fluctuations and exchange controls;

 

   

rates of inflation;

 

   

challenges in collecting accounts receivable;

 

   

cultural and language differences;

 

   

employment regulations;

 

   

crime, strikes, riots, civil disturbances, terrorist attacks and wars;

 

   

deterioration of political relations with the United States;

 

   

obligatory military service by personnel; and

 

   

government appropriation of assets.

We may not be able to adequately address these additional risks. If we were unable to do so, we may be unable to complete such partnering transaction or, if we complete such partnering transaction, our operations might suffer, either of which may adversely impact our results of operations and financial condition.

Our management may not be able to maintain control of a target business after our partnering transaction. We cannot provide assurance that, upon loss of control of a target business, new management will possess the skills, qualifications or abilities necessary to profitably operate such business.

We may structure our partnering transaction so that the post-transaction company in which our public stockholders own or acquire shares will own less than 100% of the outstanding equity interests or assets of a target business, but we will only complete such partnering transaction if the post-transaction company owns or acquires 50% or more of the outstanding voting power of the outstanding capital stock of the target or otherwise acquires an interest in the target business sufficient for us not to be required to register as an investment company under the Investment Company Act. We will not consider any transaction that does not meet such criteria. Even if the post-transaction company owns or acquires 50% or more of the outstanding voting power of the outstanding capital stock of the target, our stockholders prior to our partnering transaction (including our sponsor) may collectively own a minority interest (economic and/or voting) in the post-partnering transaction company, depending on, among other things, valuations ascribed to the target and us in our partnering transaction and any changes in our post-partnering transaction capital structure. For example, we could pursue a transaction in which we issue a substantial number of new shares of common stock in exchange for all of the outstanding capital stock, shares or other equity interests of a target business, issue a substantial number of new shares to third parties in connection with financing our partnering transaction or our sponsor could convert some or all of its Series B common stock into Series A common stock. In such cases, we would acquire a 100% interest in the target. However, as a result of the issuance of a substantial number of new shares of common stock or other changes in our capital structure, our stockholders immediately prior to such transaction (including our sponsor) could own less than a majority of our outstanding shares of common stock subsequent to such transaction, and therefore a minority interest (economic and/or voting) in the post-partnering transaction company. In addition, other minority stockholders may subsequently combine their

 

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holdings resulting in a single person or group obtaining a larger share of the company’s stock than we initially acquired. Accordingly, this may make it more likely that our management will not be able to maintain our control of the target business.

If our management team, following our partnering transaction, is unfamiliar with United States securities laws, they may have to expend time and resources becoming familiar with such laws, which could lead to various regulatory issues.

Following our partnering transaction, any or all of our management team could resign from their positions as officers of the post-partnering transaction company, and the management of the target business at the time of the partnering transaction could remain in place. Management of the target business may not be familiar with United States securities laws. If new management is unfamiliar with United States securities laws, they may have to expend time and resources becoming familiar with such laws. This could be expensive and time-consuming and could lead to various regulatory issues, which may adversely affect our operations.

The officers and directors of a prospective target business may resign upon the completion of our partnering transaction, which could negatively impact the operations and profitability of our post-combination business.

The officers and directors of an acquisition candidate may resign upon completion of our partnering transaction. The departure of a partnering transaction target’s key personnel could negatively impact the operations and profitability of our post-combination business. The role of an acquisition candidate’s key personnel upon the completion of our partnering transaction cannot be ascertained at this time. Although we contemplate that certain members of an acquisition candidate’s management team will remain associated with the acquisition candidate following our partnering transaction, it is possible that members of the management of an acquisition candidate will not wish to remain in place.

Risks Relating to our Securities

You will not have any rights or interests in funds from the trust account, except under certain limited circumstances. To liquidate your investment, therefore, you may be forced to sell your public shares or warrants, potentially at a loss.

Our public stockholders will be entitled to receive funds from the trust account only upon the earliest to occur of: (1) the completion of our partnering transaction, and then only in connection with those shares of Series A common stock that such stockholder properly elected to redeem, subject to the limitations described herein; (2) the redemption of any public shares properly submitted in connection with a stockholder vote to amend our amended and restated certificate of incorporation (A) to modify the substance or timing of our obligation to allow redemptions in connection with our partnering transaction or to redeem 100% of our public shares if we do not complete our partnering transaction within 24 months from the closing of this offering (or 27 months following an agreement in principle event) or (B) with respect to any other provision relating to stockholders’ rights or pre-partnering transaction activity; and (3) the redemption of all of our public shares if we have not completed our partnering transaction within 24 months from the closing of this offering (or 27 months following an agreement in principle event), subject to applicable law and as further described herein. In addition, if we have not completed a partnering transaction within 24 months from the closing of this offering (or 27 months following an agreement in principle event) for any reason, compliance with Delaware law may require that we submit a plan of dissolution to our then-existing stockholders for approval prior to the distribution of the proceeds held in our trust account. In that case, public stockholders may be forced to wait beyond the end of such period before they receive funds from our trust account. In no other circumstances will a public stockholder have any right or interest of any kind in the trust account. Holders of warrants will not have any right to the proceeds held in the trust account with respect to the warrants. Accordingly, to liquidate your investment, you may be forced to sell your public shares or warrants, potentially at a loss.

 

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We are not registering the shares of Series A common stock issuable upon exercise of the warrants under the Securities Act or any state securities laws at this time, and such registration may not be in place when an investor desires to exercise warrants, thus precluding such investor from being able to exercise its warrants except on a “cashless basis” and potentially causing such warrants to expire worthless.

We are not registering the shares of Series A common stock issuable upon exercise of the warrants under the Securities Act or any state securities laws at this time. However, under the terms of the warrant agreement, we have agreed that as soon as practicable, but in no event later than 20 business days after the consummation of our partnering transaction, we will use our commercially reasonable efforts to file with the SEC, and within 60 business days following our partnering transaction to have declared effective, a registration statement covering the issuance of the shares of Series A common stock issuable upon exercise of the warrants and to maintain a current prospectus relating to those shares of Series A common stock until the warrants expire or are redeemed. We cannot assure you that we will be able to do so if, for example, any facts or events arise which represent a fundamental change in the information set forth in the registration statement or prospectus, the financial statements contained or incorporated by reference therein are not current, complete or correct or the SEC issues a stop order. If the shares issuable upon exercise of the warrants are not registered under the Securities Act, we will be required to permit holders to exercise their warrants on a cashless basis, in which case, the number of shares of Series A common stock that you will receive upon cashless exercise will be based on a formula subject to a maximum amount of shares equal to 0.361 shares of Series A common stock per warrant (subject to adjustment). However, no warrant will be exercisable for cash or on a cashless basis, and we will not be obligated to issue any shares to holders seeking to exercise their warrants, unless the issuance of the shares upon such exercise is registered or qualified under the securities laws of the state of the exercising holder or an exemption from registration is available. Notwithstanding the above, if our Series A common stock is at the time of any exercise of a warrant not listed on a national securities exchange such that it satisfies the definition of a “covered security” under Section 18(b)(1) of the Securities Act, we may, at our option, require holders of public warrants who exercise their warrants to do so on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act and, in the event we so elect, we will not be required to file or maintain in effect a registration statement, but we will use our commercially reasonable efforts to register or qualify the shares under applicable blue sky laws to the extent an exemption is not available. In no event will we be required to net cash settle any warrant, or issue securities or other compensation in exchange for the warrants in the event that we are unable to register or qualify the shares underlying the warrants under applicable state securities laws and no exemption is available. If the issuance of the shares upon exercise of the warrants is not so registered or qualified or exempt from registration or qualification, the holder of such warrant shall not be entitled to exercise such warrant and such warrant may have no value and expire worthless. In such event, holders who acquired their warrants as part of a purchase of units will have paid the full unit purchase price solely for the shares of Series A common stock included in the units. There may be a circumstance where an exemption from registration exists for holders of our private placement warrants to exercise their warrants while a corresponding exemption does not exist for holders of the public warrants included as part of units sold in this offering. In such an instance, our sponsor and its permitted transferees (which may include our directors and officers) would be able to exercise their warrants and sell the shares of Series A common stock underlying their warrants while holders of our public warrants would not be able to exercise their warrants and sell the underlying shares of Series A common stock. If and when the warrants become redeemable by us, we may exercise our redemption right even if we are unable to register or qualify the underlying shares of Series A common stock for sale under all applicable state securities laws. As a result, we may redeem warrants even if the holders are otherwise unable to exercise their warrants.

NYSE may delist our securities from trading on its exchange, which could limit investors’ ability to make transactions in our securities and subject us to additional trading restrictions.

We have been approved to have our units listed on the NYSE on or promptly after the date of this prospectus and our Series A common stock and warrants listed on or promptly after their date of separation. Although after giving effect to this offering we expect to meet the minimum initial listing standards set forth in the NYSE listing standards, we cannot assure you that our securities will continue to be listed on the NYSE prior

 

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to our partnering transaction. Additionally, in connection with our partnering transaction, we will be required to demonstrate compliance with NYSE’s initial listing requirements, which are more rigorous than the NYSE’s continued listing requirements, in order to continue to maintain the listing of our securities on the NYSE. For example, in order for our Series A common stock to be listed upon the consummation of our partnering transaction, among other things, we would be required to have at least 300 round lot holders at such time. We cannot assure you that we will be able to meet those initial listing requirements at that time. The NYSE will also have discretionary authority to not approve our listing if it determines that the listing of the company to be acquired is against public policy at that time.

If NYSE delists any of our securities from trading on its exchange and we are not able to list such securities on another national securities exchange, we expect such securities could be quoted on an over-the-counter market. If this were to occur, we could face significant material adverse consequences, including:

 

   

a limited availability of market quotations for our securities;

 

   

reduced liquidity for our securities;

 

   

a determination that our Series A common stock is a “penny stock” which will require brokers trading in our Series A common stock to adhere to more stringent rules and possibly result in a reduced level of trading activity in the secondary trading market for our securities;

 

   

a limited amount of news and analyst coverage; and

 

   

a decreased ability to issue additional securities or obtain additional financing in the future.

The National Securities Markets Improvement Act of 1996, which is a federal statute, prevents or preempts the states from regulating the sale of certain securities, which are referred to as “covered securities.” Because we expect that our units and eventually our Series A common stock and warrants will be listed on the NYSE, our units, Series A common stock and warrants will qualify as covered securities under such statute. Although the states are preempted from regulating the sale of covered securities, the federal statute does allow the states to investigate companies if there is a suspicion of fraud, and, if there is a finding of fraudulent activity, then the states can regulate or bar the sale of covered securities in a particular case. While we are not aware of a state having used these powers to prohibit or restrict the sale of securities issued by special purpose acquisition companies, certain state securities regulators view blank check companies unfavorably and might use these powers, or threaten to use these powers, to hinder the sale of securities of blank check companies in their states. Further, if we were no longer listed on the NYSE, our securities would not qualify as covered securities under such statute and we would be subject to regulation in each state in which we offer our securities.

Our sponsor paid an aggregate of $25,000, or approximately $0.003 per share, and, accordingly, you will experience immediate and substantial dilution from the purchase of our Series A common stock.

The difference between the public offering price per share (allocating all of the unit purchase price to the common stock and none to the warrant included in the unit) and the pro forma net tangible book value per share of our Series A common stock after this offering constitutes the dilution to you and the other investors in this offering. Our sponsor acquired the founder shares at a nominal price, significantly contributing to this dilution. Upon the closing of this offering, and assuming no value is ascribed to the warrants included in the units, you and the other public stockholders will incur an immediate and substantial dilution of approximately 95.6% (or $9.56 per share, assuming no exercise of the underwriters’ over-allotment option), the difference between the pro forma net tangible book value per share of $0.44 and the initial offering price of $10.00 per unit. This dilution would become exacerbated to the extent that public stockholders seek redemptions from the trust.

 

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We may amend the terms of the warrants in a manner that may be adverse to holders of public warrants with the approval by the holders of at least 50% of the then outstanding public warrants. As a result, the exercise price of your warrants could be increased, the warrants could be converted into cash or stock, the exercise period could be shortened and the number of shares of our Series A common stock purchasable upon exercise of a warrant could be decreased, all without your approval.

Our warrants will be issued in registered form under a warrant agreement between Continental Stock Transfer & Trust Company, as warrant agent, and us. The warrant agreement provides that (a) the terms of the warrants may be amended without the consent of any holder for the purpose of (i) curing any ambiguity or correcting any mistake, including to conform the provisions of the warrant agreement to the description of the terms of the warrants and the warrant agreement set forth in this prospectus, or defective provision or (ii) adding or changing any provisions with respect to matters or questions arising under the warrant agreement as the parties to the warrant agreement may deem necessary or desirable and that the parties deem to not materially adversely affect the rights of the registered holders of the warrants and (b) all other modifications or amendments require the vote or written consent of at least 50% of the then outstanding public warrants; provided that any amendment that solely affects the terms of the private placement warrants or forward purchase warrants or any provision of the warrant agreement solely with respect to the private placement warrants or forward purchase warrants will also require the vote or written consent of at least 50% of the then outstanding private placement warrants or forward purchase warrants, respectively. Accordingly, we may amend the terms of the public warrants in a manner adverse to a holder if holders of at least 50% of the then outstanding public warrants approve of such amendment. Although our ability to amend the terms of the public warrants with the consent of at least 50% of the then outstanding public warrants is unlimited, examples of such amendments could be amendments to, among other things, increase the exercise price of the warrants, convert the warrants into cash or stock (at a ratio different than initially provided), shorten the exercise period or decrease the number of shares of our common stock purchasable upon exercise of a warrant.

Our warrant agreement will designate the courts of the State of Delaware or the United States District Court for the District of Delaware as the sole and exclusive forum for certain types of actions and proceedings that may be initiated by holders of our warrants, which could limit the ability of warrant holders to obtain a favorable judicial forum for disputes with our company.

Our warrant agreement will provide that, subject to applicable law, (i) any action, proceeding or claim against us arising out of or relating in any way to the warrant agreement, including under the Securities Act, will be brought and enforced in the courts of the State of Delaware located in Wilmington or the United States District Court for the District of Delaware, and (ii) we irrevocably submit to such jurisdiction, which jurisdiction shall be the exclusive forum for any such action, proceeding or claim. We will waive any objection to such exclusive jurisdiction and that such courts represent an inconvenient forum.

Notwithstanding the foregoing, these provisions of the warrant agreement will not apply to suits brought to enforce any liability or duty created by the Exchange Act or any other claim for which the federal district courts of the United States of America are the sole and exclusive forum. Any person or entity purchasing or otherwise acquiring any interest in any of our warrants shall be deemed to have notice of and to have consented to the forum provisions in our warrant agreement. If any action, the subject matter of which is within the scope the forum provisions of the warrant agreement, is filed in a court other than a court of the State of Delaware located in Wilmington or the United States District Court for the District of Delaware (a “foreign action”) in the name of any holder of our warrants, such holder shall be deemed to have consented to: (x) the personal jurisdiction of the state courts located in the State of Delaware and the federal courts in connection with any action brought in any such court to enforce the forum provisions (an “enforcement action”), and (y) having service of process made upon such warrant holder in any such enforcement action by service upon such warrant holder’s counsel in the foreign action as agent for such warrant holder.

This choice-of-forum provision may limit a warrant holder’s ability to bring a claim in a judicial forum that it finds favorable for disputes with our company, which may discourage such lawsuits. Alternatively, if a court were

 

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to find this provision of our warrant agreement inapplicable or unenforceable with respect to one or more of the specified types of actions or proceedings, we may incur additional costs associated with resolving such matters in other jurisdictions, which could materially and adversely affect our business, financial condition and results of operations and result in a diversion of the time and resources of our management and board of directors.

A provision of our warrant agreement may make it more difficult for us to consummate a partnering transaction.

Unlike some blank check companies, if

 

  (i)

we issue additional shares of common stock or equity-linked securities, excluding forward purchase units, for capital raising purposes in connection with the consummation of our partnering transaction at a Newly Issued Price of less than $9.20 per share of common stock,

 

  (ii)

the aggregate gross proceeds from such issuances, excluding the forward purchase units, represent more than 60% of the total equity proceeds, and interest thereon, available for the funding of our partnering transaction on the date of the completion of our partnering transaction (net of redemptions), and

 

  (iii)

the Market Value is below $9.20 per share,

then the exercise price of the warrants will be adjusted to be equal to 115% of the higher of the Market Value and the Newly Issued Price, and the $18.00 per share redemption trigger price described below under “Description of Securities — Warrants — Public Stockholders’ Warrants — Redemption of warrants when the price per share of Series A common stock equals or exceeds $18.00” will be adjusted (to the nearest cent) to be equal to 180% of the higher of the Market Value and the Newly Issued Price. This may make it more difficult for us to consummate a partnering transaction with a target business.

We may redeem your unexpired warrants prior to their exercise at a time that is disadvantageous to you, thereby making your warrants worthless.

We have the ability to redeem outstanding public warrants at any time after they become exercisable and prior to their expiration, at a price of $0.01 per warrant if, among other things, the last reported sales price of our Series A common stock 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 — Public Stockholders’ Warrants — Anti-dilution Adjustments”) for any 20 trading days within a 30 trading-day period ending on the third trading day prior to the date we send the notice of redemption to the warrant holders. If and when the warrants become redeemable by us, we may exercise our redemption right even if we are unable to register or qualify the underlying securities for sale under all applicable state securities laws. As a result, we may redeem the public warrants as set forth above even if the holders are otherwise unable to exercise the warrants. Redemption of the outstanding warrants could force you to: (1) exercise your warrants and pay the exercise price therefor at a time when it may be disadvantageous for you to do so; (2) sell your warrants at the then-current market price when you might otherwise wish to hold your warrants; or (3) accept the nominal redemption price which, at the time the outstanding warrants are called for redemption, we expect would be substantially less than the market value of your warrants.

None of the private placement warrants will be redeemable by us so long as they are held by our sponsor or its permitted transferees.

Because each unit contains one-third of one redeemable warrant and only a whole warrant may be exercised, the units may be worth less than units of other blank check companies.

Each unit contains one-third of one redeemable warrant. Pursuant to the warrant agreement, no fractional warrants will be issued upon separation of the units, and only whole units will trade. This is different from some

 

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other offerings similar to ours whose units include one share of Series A common stock and one whole warrant to purchase one share. We have established the components of the units in this way in order to reduce the dilutive effect of the warrants upon completion of a partnering transaction since the warrants will be exercisable in the aggregate for a third of the number of shares compared to units that each contain a whole warrant to purchase one share, thus making us, we believe, a more attractive partnering transaction partner for target businesses. Nevertheless, this unit structure may cause our units to be worth less than if they included a warrant to purchase one whole share.

The determination of the offering price of our units and the size of this offering is more arbitrary than the pricing of securities and size of an offering of an operating company in a particular industry. You may have less assurance, therefore, that the offering price of our units properly reflects the value of such units than you would have in a typical offering of an operating company.

Prior to this offering there has been no public market for any of our securities. The public offering price of the units and the terms of the warrants were negotiated between us and the underwriters. In determining the size of this offering, management held customary organizational meetings with representatives of the underwriters with respect to the state of capital markets, generally, and the amount the underwriters believed they reasonably could raise on our behalf. Factors considered in determining the size of this offering, prices and terms of the units, including the Series A common stock and warrants underlying the units, include:

 

   

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 at attractive values;

 

   

a review of debt to equity ratios in leveraged transactions;

 

   

our capital structure;

 

   

an assessment of our management and their experience in identifying suitable partnering transaction opportunities;

 

   

general conditions of the securities markets at the time of this offering; and

 

   

other factors as were deemed relevant.

Although these factors were considered, the determination of our offering price is more arbitrary than the pricing of securities of an operating company in a particular industry since we have no historical operations or financial results.

The voting structure of our common stock will have the effect of concentrating voting power with our sponsor, which will limit an investor’s ability to influence our policies and the outcome of important transactions, including a change in control.

Following our partnering transaction, we expect our authorized capital stock will consist of Series A common stock, entitling the holder to one vote per share, Series B common stock, entitling the holder to ten votes per share, and Series C common stock, the holder of which will not be entitled to any voting powers except to the extent required by Delaware law. Following our partnering transaction, we anticipate the holders of Series A common stock and Series B common stock will generally vote together as a single class on matters presented for a stockholder vote, except as required by Delaware law or stock exchange rule. In connection with our partnering transaction (or earlier at our sponsor’s election), the outstanding shares of Series F common stock held by our sponsor will be converted on a one-for-one basis into shares of Series B common stock, and we have agreed to issue to our sponsor 10,000,000 forward purchase units consisting of one share of Series B common stock and one-third of a forward purchase warrant. The high-vote nature of our Series B

 

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common stock differs from the typical capital structure of many other special purpose acquisition companies and will significantly dilute the voting power of the investors in this offering following our partnering transaction. Assuming that the underwriters do not exercise their over-allotment option, that our sponsor forfeits an aggregate of 1,125,000 founder shares, that there are 38,500,000 shares of our common stock outstanding after this offering, that the issuance of 10,000,000 forward purchase units to our sponsor pursuant to the forward purchase agreement are the only additional equity securities issued in connection with our partnering transaction and that our sponsor, or an affiliate of our sponsor, does not purchase any public units in this offering, our sponsor is expected to hold approximately 38% of the outstanding shares of our common stock representing approximately 85% of the outstanding voting power of our outstanding common stock immediately following the closing of our partnering transaction. We anticipate that our sponsor’s voting power and equity ownership may be substantially diluted in connection with our partnering transaction, either from the issuance of new shares of common stock in exchange for the capital stock of the target, the issuance of our capital stock to third party investors providing additional funding to our company in connection with the partnering transaction, or both. Until such time, our sponsor and Post would have the ability to exercise control over our affairs, policies and operations, such as the appointment of management, the issuance of additional shares of our common stock or other securities, the payment of dividends on our common stock, the incurrence of debt by us and over matters requiring stockholder approval, including the election of directors, amendments of our organizational documents and any change of control of our company. Our sponsor may have interests that differ from yours and may vote in a way with which you disagree and which may be adverse to your interests.

Our sponsor’s equity ownership may create or appear to create conflicts of interest.

Our sponsor’s ownership, and our officers’ and certain of our directors’ indirect ownership through Post’s ownership of our sponsor, of our Series B common stock may create or appear to create conflicts of interest when they are faced with decisions that could have different implications for the holders of Series A common stock, including the structure of our partnering transaction, any financing or private placement in connection with our partnering transaction, the election of directors, amendments of our organizational documents and any merger, consolidation or sale of all or substantially all of our assets.

Since only holders of our founder shares will have the right to vote on the appointment of directors, upon the listing of our shares on the NYSE, the NYSE may consider us to be a “controlled company” within the meaning of the NYSE rules and, as a result, we may qualify for exemptions from certain corporate governance requirements.

After completion of this offering, only holders of our founder shares will have the right to vote on the appointment of directors until our partnering transaction. Additionally, following our partnering transaction, we expect that the Series B common stock will have ten votes per share and Series A common stock will have one vote per share, concentrating voting power with the holders of our founder shares which may at such time exceed 50% of the voting power of the company. As a result, NYSE may consider us to be a “controlled company” within the meaning of the NYSE corporate governance standards. Under the NYSE corporate governance standards, a company of which more than 50% of the voting power is held by an individual, group or another company is a “controlled company” and may elect not to comply with certain corporate governance requirements, including the requirements that:

 

   

we have a board that includes a majority of “independent directors,” as defined under the rules of NYSE; and

 

   

we have a corporate governance and compensation committee of our board that is comprised entirely of independent directors with a written charter addressing the committee’s purpose and responsibilities.

We do not intend to utilize these exemptions and intend to comply with the corporate governance requirements of NYSE, subject to applicable phase-in rules. However, if we determine in the future to utilize

 

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some or all of these exemptions, you will not have the same protections afforded to stockholders of companies that are subject to all of the NYSE corporate governance requirements.

Our governance structure and the adoption of our amended and restated certificate of incorporation may negatively affect the decision by certain institutional investors to purchase or hold shares of our Series A common stock.

The holding of low-voting stock, such as our Series A common stock, or if it is issued in the future, our non-voting Series C common stock, may not be permitted by the investment policies of certain institutional investors or may be less attractive to the portfolio managers of certain institutional investors. In addition, in July 2017, FTSE Russell and Standard & Poor’s announced that they would cease to allow most newly public companies utilizing dual- or multi-class capital structures to be included in their indices. Affected indices include the Russell 2000 and the S&P 500, S&P MidCap 400, and S&P SmallCap 600, which together make up the S&P Composite 1500. Our multi-class capital structure may make us ineligible for inclusion in any of these and certain other indices following our partnering transaction, and as a result, mutual funds, exchange-traded funds, and other investment vehicles that attempt to passively track these indices would not invest in our stock. These policies may depress our valuation compared to those of other similar companies that are included in such indices.

There is currently no market for our securities and a market for our securities may not develop, which would adversely affect the liquidity and price of our securities.

There is currently no market for our securities. Stockholders therefore have no access to information about prior market history on which to base their investment decision. Following this offering, the price of our securities may vary significantly due to one or more potential partnering transactions and general market or economic conditions, including as a result of the COVID-19 outbreak and other events (such as terrorist attacks, natural disasters or a significant outbreak of other infectious diseases). Furthermore, an active trading market for our securities may never develop or, if developed, it may not be sustained. You may be unable to sell your securities unless a market can be established and sustained.

Holders of a single series of our common stock may not have any remedies if an action by our directors has an adverse effect on only that series of our common stock.

Principles of Delaware law and the provisions of our amended and restated certificate of incorporation may protect decisions of our board of directors that have a disparate impact upon holders of any single series of our common stock. Under Delaware law, the board of directors has a duty to act with due care and in the best interests of all of our stockholders, including the holders of all series of our common stock. Principles of Delaware law established in cases involving differing treatment of multiple classes or series of stock provide that a board of directors owes an equal duty to all common stockholders regardless of class or series and does not have separate or additional duties to any group of stockholders. As a result, in some circumstances, our directors may be required to make a decision that is viewed as adverse to the holders of one series of our common stock. Under the principles of Delaware law and the business judgment rule, holders may not be able to successfully challenge decisions that they believe have a disparate impact upon the holders of one series of our stock if our board of directors is disinterested and independent with respect to the action taken, is adequately informed with respect to the action taken and acts in good faith and in the honest belief that the board is acting in the best interest of all of our stockholders.

 

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Our amended and restated certificate of incorporation will designate the Court of Chancery of the State of Delaware as the sole and exclusive forum for certain types of actions and proceedings that may be initiated by our stockholders, and also provide that the federal district courts will be the exclusive forum for resolving any complaint asserting a cause of action arising under the Securities Act of 1933, as amended, each of which could limit our stockholders’ ability to choose the judicial forum for disputes with our company or our company’s directors, officers or employees.

Our amended and restated certificate of incorporation will provide that, unless we consent in writing to the selection of an alternative forum, to the fullest extent permitted by applicable law, the Court of Chancery of the State of Delaware (or, if and only if the Court of Chancery does not have subject matter jurisdiction, another state court within the State of Delaware or, if no state court in Delaware has subject matter jurisdiction, the federal district courts of the United States of America) shall be the sole and exclusive forum for any stockholder (including a beneficial owner within the meaning of Section 13(d) of the Exchange Act) to bring (1) any derivative action, suit or proceeding brought or purportedly brought on behalf of our company, (2) any action, suit or proceeding asserting a claim of breach of a fiduciary duty owed by any current or former director, stockholder, officer, employee or agent of our company to our company or our stockholders, or any claim of aiding and abetting such breach, (3) any action, suit or proceeding asserting a claim arising pursuant to, or seeking to enforce any right, obligation, or remedy under, any provision of the DGCL or the amended and restated certificate of incorporation or the amended and restated bylaws, (4) any action to interpret, apply, enforce or determine the validity of the amended and restated certificate of incorporation or the amended and restated bylaws, (5) any action asserting a claim against our company or any director or officer of our company governed by the internal affairs doctrine, (6) any action, suit, or proceeding as to which the DGCL confers jurisdiction on the Court of Chancery, or (7) any action, suit or proceeding asserting an “internal corporate claim” as defined in Section 115 of the DGCL; in all cases, subject to the court’s having personal jurisdiction over the indispensable parties named as defendants. Notwithstanding the foregoing, the provisions of this paragraph will not apply to any actions arising under the Securities Act or the Exchange Act or otherwise arising under federal securities laws, for which the federal district courts of the United States of America shall be the sole and exclusive forum.

Section 22 of the Securities Act creates concurrent jurisdiction for federal and state courts over all such Securities Act actions. Accordingly, both state and federal courts have jurisdiction to entertain such claims. To prevent having to litigate claims in multiple jurisdictions and the threat of inconsistent or contrary rulings by different courts, among other considerations, our amended and restated certificate of incorporation also provides that the federal district courts of the United States of America will, to the fullest extent permitted by law, be the sole and exclusive forum for the resolution of any complaint asserting a cause of action arising under the Securities Act.

Any person or entity purchasing or otherwise acquiring any interest in any shares of our capital stock shall be deemed to have notice of and to have consented to the forum provisions in our amended and restated certificate of incorporation. If any action the subject matter of which is within the scope the forum provisions is filed in a court other than a court located within the State of Delaware (a “foreign action”) in the name of any stockholder, such stockholder shall be deemed to have consented to: (x) the personal jurisdiction of the state courts located within the State of Delaware and the federal courts in connection with any action brought in any such court to enforce the forum provisions (an “enforcement action”), and (y) having service of process made upon such stockholder in any such enforcement action by service upon such stockholder’s counsel in the foreign action as agent for such stockholder.

Although we believe these exclusive forum provisions benefit us by providing increased consistency in the application of Delaware law and federal securities laws in the types of lawsuits to which each applies, the exclusive forum provisions may limit a stockholder’s ability to bring a claim in a judicial forum of its choosing for disputes with us or any of our directors, officers, stockholders, or other employees, which may discourage lawsuits with respect to such claims against us and our current and former directors, officers, stockholders, or other employees

 

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and may result in additional costs for a stockholder seeking to bring a claim. Our stockholders will not be deemed to have waived our compliance with the federal securities laws and the rules and regulations thereunder as a result of our exclusive forum provisions. While we believe the risk of a court declining to enforce this forum selection clause is low, if a court were to determine the forum selection clause to be inapplicable or unenforceable in an action, we may incur additional costs in conjunction with our efforts to resolve the dispute in an alternative jurisdiction, which could have a negative impact on our results of operations and financial condition and result in a diversion of time and resources of our management team and board of directors.

We will adopt certain provisions in our amended and restated certificate of incorporation and amended and restated bylaws that we intend to retain following the partnering transaction that may make difficult for a third party to acquire us, even if doing so may be beneficial to our stockholders.

We will adopt certain provisions in our amended and restated certificate of incorporation and amended and restated bylaws that we intend to retain following the partnering transaction that may discourage, delay or prevent a change in control of our company that a stockholder may consider favorable. These provisions include:

 

   

authorizing a capital structure with multiple series of common stock, including Series A common stock that entitles the holder to one vote per share, Series B common stock that entitles the holders to initially one vote per share or, following our partnering transaction, ten votes per share, Series C common stock that except as otherwise required by applicable law, entitles the holder to no voting rights and Series F common stock that, prior to the completion of our partnering transaction, will be the only shares entitled to vote on the election of directors;

 

   

from and after our partnering transaction, classifying our board of directors with staggered three-year terms, which may lengthen the time required to gain control of our board of directors;

 

   

limiting who may call special meetings of stockholders;

 

   

establishing advance notice requirements for nominations of candidates for election to the board of directors or for proposing matters that can be acted upon by stockholders at stockholder meetings;

 

   

requiring stockholder approval by holders of at least 66 2/3% of our total voting power of our outstanding capital stock or approval by at least 75% of our board of directors with respect to certain extraordinary matters, such as a merger or consolidation of our company, a sale of all or substantially all of our assets or an amendment to our amended and restated certificate of incorporation (except for any stockholder approval in connection with our partnering transaction);

 

   

the existence of authorized and unissued stock, including “blank check” preferred stock, which could be issued by our board of directors to persons friendly to our then current management, thereby protecting the continuity of our management, or which could be used to dilute the stock ownership of persons seeking to obtain control of our company;

 

   

following the completion of our partnering transaction, prohibiting stockholders from filling vacancies on our board of directors, which will only be able to be filled by our board of directors; and

 

   

following the completion of our partnering transaction, providing that any or all of our directors may be removed from office at any time, but only for cause and only by the affirmative vote of holders of a majority of the voting power of all then outstanding shares of our capital stock entitled to vote generally in the election of directors, voting together as a single class.

Together these provisions could also make it more difficult for stockholders to elect directors of their choosing and to cause us to take other corporate actions they desire, any of which, under certain circumstances, could limit the opportunity for our stockholders to receive a premium for their shares of our common stock, and could also affect the price that some investors are willing to pay for our common stock. These provisions may also affect a target’s desire to enter into a partnering transaction with us.

 

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General Risk Factors

We are a newly incorporated company with no operating history and no revenues, and you have no basis on which to evaluate our ability to achieve our business objective.

We are a newly incorporated company with no operating results, and we will not commence operations until obtaining funding through this offering. Because we lack an operating history, you have no basis upon which to evaluate our ability to achieve our business objective of completing our partnering transaction with one or more target businesses. We have no plans, arrangements or understandings with any prospective target business concerning a partnering transaction and may be unable to complete our partnering transaction. If we fail to complete our partnering transaction, we will never generate any operating revenues.

Past performance by Post and members of our management team may not be indicative of future performance of an investment in us.

Information regarding performance by, or businesses associated with, our management team or Post is presented for informational purposes only. Past experience and performance, including related to acquisitions, of our management team or Post is not a guarantee either: (1) that we will be able to successfully identify a suitable candidate for our partnering transaction; or (2) of any results with respect to any partnering transaction we may consummate. You should not rely on the historical record or performance of Post or any members of our management team or any related investment’s performance as indicative of the future performance of an investment in us or the returns we will, or are likely to, generate going forward. An investment in us is not an investment in Post.

We are an emerging growth company within the meaning of the Securities Act, and if we take advantage of certain exemptions from disclosure requirements available to emerging growth companies, this could make our securities less attractive to investors and may make it more difficult to compare our performance with other public companies.

We are an “emerging growth company” within the meaning of the Securities Act, as modified by the JOBS Act, and we may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. As a result, our stockholders may not have access to certain information they may deem important. We could be an emerging growth company for up to five years, although circumstances could cause us to lose that status earlier, including if the market value of our common stock held by non-affiliates exceeds $700 million as of the end of any second fiscal quarter of a fiscal year, in which case we would no longer be an emerging growth company as of the end of such fiscal year. We cannot predict whether investors will find our securities less attractive because we will rely on these exemptions. If some investors find our securities less attractive as a result of our reliance on these exemptions, the trading prices of our securities may be lower than they otherwise would be, there may be a less active trading market for our securities and the trading prices of our securities may be more volatile.

Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. We have elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, we, as an emerging growth

 

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company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of our financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.

Cyber incidents or attacks directed at us could result in information theft, data corruption, operational disruption and/or financial loss.

We will depend on digital technologies, including information systems, infrastructure and cloud applications and services, including those of third parties with which we may deal. Sophisticated and deliberate attacks on, or security breaches in, our systems or infrastructure, or the systems or infrastructure of third parties or the cloud, could lead to corruption or misappropriation of our assets, proprietary information and sensitive or confidential data. As an early stage company without significant investments in data security protection, we may not be sufficiently protected against such occurrences. We may not have sufficient resources to adequately protect against, or to investigate and remediate any vulnerability to, cyber incidents. It is possible that any of these occurrences, or a combination of them, could have adverse consequences on our business and lead to financial loss.

An investment in this offering may result in uncertain or adverse United States federal income tax consequences.

An investment in this offering may result in uncertain United States federal income tax consequences. For instance, because there are no authorities that directly address instruments similar to the units we are issuing in this offering, the allocation an investor makes with respect to the purchase price of a unit between the share of Series A common stock and the one-third of one redeemable warrant to purchase one share of our Series A common stock included in each unit could be challenged by the United States Internal Revenue Service, or IRS, or the courts. Furthermore, the United States federal income tax consequences of a cashless exercise of warrants included in the units we are issuing in this offering are unclear under current law, and the adjustment to the exercise price and/or redemption price of the warrants could give rise to dividend income to investors without a corresponding payment of cash. Finally, it is unclear whether the redemption rights with respect to our shares of common stock suspend the running of a United States Holder’s holding period for purposes of determining whether any dividend we pay would be considered a “qualified dividend” for United States federal income tax purposes. See the section of this prospectus titled “United States Federal Income Tax Considerations” for a summary of the material United States federal income tax considerations applicable to an investment in our securities. Prospective investors are urged to consult their tax advisors with respect to these and other tax consequences applicable to their specific circumstances when purchasing, holding or disposing of our securities.

 

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USE OF PROCEEDS

We are offering 30,000,000 units at an offering price of $10.00 per unit. We estimate that the net proceeds of this offering together with the funds we will receive from the sale of the private placement units will be used as set forth in the following table. The amounts shown in the table and discussed in the notes below assumes that our sponsor, or an affiliate of our sponsor, does not purchase any public units in the offering.

 

     Without Over-
Allotment
    With Over-
Allotment
Option
Exercised in Full
 

Gross proceeds

    

Gross proceeds from units offered to public(1)

   $ 300,000,000     $ 345,000,000  

Gross proceeds from private placement units

     10,000,000       10,900,000  
  

 

 

   

 

 

 

Total gross proceeds

   $ 310,000,000     $ 355,900,000  
  

 

 

   

 

 

 

Estimated offering expenses(2)

    

Underwriting commissions (2.0% of gross proceeds from units offered to public, excluding deferred portion)(3)

   $ 6,000,000     $ 6,900,000  

Legal fees and expenses

     350,000       350,000  

Printing and engraving expenses

     40,000       40,000  

Accounting fees and expenses

     47,000       47,000  

SEC/FINRA Expenses

     119,686       119,686  

Travel and road show

     10,000       10,000  

Directors and officers insurance premiums

     500,000       500,000  

NYSE listing and filing fees

     85,000       85,000  

Miscellaneous expenses(4)

     348,314       348,314  

Total estimated offering expenses (other than underwriting commissions)

     1,500,000       1,500,000  
  

 

 

   

 

 

 

Proceeds after estimated offering expenses

   $ 302,500,000     $ 347,500,000  
  

 

 

   

 

 

 

Held in trust account

   $ 300,000,000     $ 345,000,000  

% of public offering size

     100     100

Not held in trust account

     2,500,000       2,500,000  
  

 

 

   

 

 

 

The following table shows the use of the approximately $2,500,000 of net proceeds not held in the trust account:(5)

 

     Amount      % of Total  

Legal, accounting, due diligence, travel, consulting and other expenses in connection with any potential partnering transaction

   $ 550,000        22.0

Legal and accounting fees related to regulatory reporting obligations

     150,000        6.0

Payment for office space, administrative and support services

     960,000        38.4

Reserve for liquidation expenses

     100,000        4.0

Non-employee director cash compensation

     600,000        24.0

NYSE continued listing fees

     75,000        3.0

Working capital to cover miscellaneous expenses

     65,000        2.6
  

 

 

    

 

 

 

Total

   $ 2,500,000        100.0
  

 

 

    

 

 

 

 

(1)

Includes amounts payable to public stockholders who properly redeem their shares in connection with our successful completion of our partnering transaction.

(2)

A portion of the offering expenses have been paid from the proceeds of loans from our sponsor of up to $300,000 as described in this prospectus. To date, we borrowed approximately $213,000 under the promissory note to be used for a portion of the expenses of this offering. These loans will be repaid upon

 

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  completion of this offering out of the $1,500,000 of offering proceeds that has been allocated for the payment of offering expenses (other than underwriting commissions) not held in the trust account. These expenses are estimates only. In the event that offering expenses are less than as set forth in this table, any such amounts will be used for post-closing working capital expenses. In the event that the offering expenses are more than as set forth in this table, we may fund such excess with funds not held in the trust account.
(3)

The underwriters have agreed to defer underwriting commissions equal to 3.5% of the gross proceeds of this offering. Upon completion of our partnering transaction, $10,500,000, which constitutes the underwriters’ deferred commissions (or up to $12,075,000 if the underwriters’ over-allotment option is exercised in full) will be paid to the underwriters or third parties as described below from the funds held in the trust account and the remaining funds, less amounts used to pay redeeming stockholders, will be released to us and can be used to pay all or a portion of the purchase price of the business or businesses with which our partnering transaction occurs or for general corporate purposes, including payment of principal or interest on indebtedness incurred in connection with our partnering transaction, to fund the purchases of other companies or for working capital. The underwriters will not be entitled to any interest accrued on the deferred underwriting discounts and commissions.

(4)

Includes organizational and administrative expenses and may include amounts related to above-listed expenses in the event actual amounts exceed estimates.

(5)

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 a partnering transaction based upon the level of complexity of such partnering transaction. In the event we identify an acquisition 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 amount in the table above does not include interest available to us from the trust account to pay our taxes. Based on current interest rates, we would expect approximately $300,000 to be available to us annually from interest earned on the funds held in the trust account; however, we can provide no assurances regarding this amount. This estimate assumes an interest rate of 0.1% per annum based upon current yields of securities in which the trust account may be invested. In addition, in order to fund working capital deficiencies or finance transaction costs in connection with an intended partnering transaction, our sponsor, Post or its subsidiaries may, but are not obligated to, loan us funds as may be required. If we complete our partnering transaction, we may repay such loaned amounts out of the proceeds of the trust account released to us. In the event that our partnering transaction does not close, we may use a portion of the working capital held outside the trust account to repay such loaned amounts but no proceeds from our trust account would be used to repay such loaned amounts. Up to $2,500,000 of such loans made to us may be convertible into units at a price of $10.00 per units at the option of the lender. The units would be identical to the private placement units issued to our sponsor. The terms of such loans, if any, have not been determined and no written agreements exist with respect to such loans. We do not expect to seek loans from parties other than our sponsor, Post or its subsidiaries, if any, as we do not believe third parties will be willing to loan such funds and provide a waiver against any and all rights to seek access to funds in our trust account.

NYSE listing rules provide that at least 90% of the gross proceeds from this offering and the sale of the private placement units be deposited in a trust account. Of the net proceeds of this offering and the sale of the private placement units, $300,000,000 (or $345,000,000 if the underwriters’ over-allotment option is exercised in full), including $10,500,000 (or up to $12,075,000 if the underwriters’ over-allotment option is exercised in full) of deferred underwriting commissions, will, upon the consummation of this offering, be placed in a United States-based trust account with Continental Stock Transfer & Trust Company acting as trustee. The funds in the trust account will be invested only in United States government treasury bills with a maturity of 185 days or less

 

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or in money market funds investing solely in United States Treasuries and meeting certain conditions under Rule 2a-7 under the Investment Company Act. Based on current interest rates, we estimate that the interest earned on the trust account will be approximately $300,000 per year, assuming an interest rate of 0.1% per year. We will not be permitted to withdraw any of the principal or interest held in the trust account except for the withdrawal of interest to pay taxes, if any. The funds held in the trust account will not be released from the trust account until the earliest of: (1) the completion of our partnering transaction; (2) the redemption of any public shares properly submitted in connection with a stockholder vote to amend our amended and restated certificate of incorporation (A) to modify the substance and timing of our obligation to allow redemptions in connection with our partnering transaction or to redeem 100% of our public shares if we do not complete our partnering transaction within 24 months from the closing of this offering (or 27 months following an agreement in principle event) or (B) with respect to any other provision relating to stockholders’ rights or pre-partnering transaction activity; and (3) the redemption of all of our public shares if we have not completed our partnering transaction within 24 months from the closing of this offering (or 27 months following an agreement in principle event), subject to applicable law. Based on current interest rates, we expect that interest earned on the trust account will be sufficient to pay taxes.

The net proceeds held in the trust account may be used as consideration to pay the sellers of a target business with which we ultimately complete our partnering transaction. If our partnering transaction is paid for using equity or debt or not all of the funds released from the trust account are used for payment of the consideration in connection with our partnering transaction or used for redemption of our public shares, we may apply the balance of the cash released to us from the trust account for general corporate purposes, including for maintenance or expansion of operations of post-transaction businesses, the payment of principal or interest due on indebtedness incurred in completing our partnering transaction, to fund the purchase of other companies or for working capital. There is no limitation on our ability to raise funds privately or through loans in connection with our partnering transaction.

Amounts not held in trust are intended to cover estimated costs and expenses to which such proceeds are allocated. In order to limit expenses, while we may begin preliminary due diligence of a target business in connection with an indication of interest, we intend to undertake in-depth due diligence, depending on the circumstances of the relevant prospective acquisition, only after we have negotiated and signed a letter of intent or other preliminary agreement that addresses the terms of a partnering transaction. We may be required to raise additional capital, the amount, availability and cost of which is currently unascertainable. If we are required to seek additional capital, we could seek such additional capital through loans or additional investments from our sponsor, Post or its subsidiaries, but such persons are not under any obligation or other duty to loan funds to, or invest in, us.

We will enter into a services agreement pursuant to which we will pay Post and certain of its subsidiaries a total of $40,000 per month for office space, administrative and support services. Upon completion of our partnering transaction or any liquidation, we may cease paying some or all of these monthly fees. Pursuant to such agreement we will indemnify Post and its affiliates for (i) any claims made by us or a third party and resulting liabilities in respect of any investment opportunities sourced by them, (ii) any liability arising with respect to their activities in connection with our affairs and (iii) any services that are provided without a separate written agreement between us and Post or an affiliate of Post. Such indemnity will provide that the indemnified parties cannot access the funds held in our trust account.

Our sponsor has agreed to loan us up to $300,000 to be used for a portion of the expenses of this offering. To date, we borrowed approximately $213,000 under the promissory note to be used for a portion of the expenses of this offering. These loans are non-interest bearing, unsecured and are due at the earlier of December 31, 2021 and the closing of this offering. These loans will be repaid upon completion of this offering out of the $1,500,000 of offering proceeds that has been allocated for the payment of offering expenses (other than underwriting commissions) not held in the trust account.

 

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In addition, in order to fund working capital deficiencies or finance transaction costs in connection with an intended partnering transaction, our sponsor, Post or its subsidiaries may, but are not obligated to, loan us funds as may be required. If we complete our partnering transaction, we may repay such loaned amounts out of the proceeds of the trust account released to us. In the event that our partnering transaction does not close, we may use a portion of the working capital held outside the trust account to repay such loaned amounts but no proceeds from our trust account would be used to repay such loaned amounts. Up to $2,500,000 of such loans made to us may be convertible into units at a price of $10.00 per unit at the option of the lender. The units would be identical to the private placement units. The terms of such loans, if any, have not been determined and no written agreements exist with respect to such loans. We do not expect to seek loans from parties other than our sponsor, Post or its subsidiaries, if any, as we do not believe third parties will be willing to loan such funds and provide a waiver against any and all rights to seek access to funds in our trust account.

In connection with the consummation of this offering, we will enter into a forward purchase agreement with our sponsor pursuant to which our sponsor will commit to purchase from us up to 10,000,000 forward purchase units, consisting of one forward purchase share and one-third of one forward purchase warrant, for $10.00 per forward purchase unit, in an aggregate amount of up to $100,000,000, in a private placement that will close concurrently with the closing of our partnering transaction. The proceeds from the sale of these forward purchase units, together with the amounts available to us from the trust account (after giving effect to any redemptions of public shares) and any other equity or debt financing obtained by us in connection with the partnering transaction, will be used to satisfy the cash requirements of the partnering transaction, including funding the purchase price and paying expenses and retaining specified amounts to be used by the post-partnering transaction company for working capital or other purposes. To the extent that the amounts available from the trust account and other financing are sufficient for such cash requirements, our sponsor may purchase less than 10,000,000 forward purchase units.

If we seek stockholder approval of our partnering transaction and we do not conduct redemptions in connection with our partnering transaction pursuant to the tender offer rules, our sponsor, directors, officers or advisors or any of the related companies or their directors, officers or advisors may also purchase shares in privately negotiated transactions or in the open market either prior to or following the completion of our partnering transaction. See “Proposed Business — Permitted purchases and other transactions with respect to our securities” for a description of how such persons will determine from which stockholders to seek to acquire shares. The price per share paid in any such transaction may be different than the amount per share a public stockholder would receive if it elected to redeem its shares in connection with our partnering transaction. However, such persons have no current commitments, plans or intentions to engage in such transactions and have not formulated any terms or conditions for any such transactions. If such persons engage in such transactions, they will be subject to restrictions in making any such purchases when they are in possession of any material non-public information 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.

We may not redeem our public shares in an amount that would cause our net tangible assets to be less than $5,000,001 following such redemptions and the agreement for our partnering transaction may require as a closing condition that we have a minimum net worth or a certain amount of cash. If too many public stockholders exercise their redemption rights so that we cannot satisfy the net tangible asset requirement or any net worth or cash requirements, we would not proceed with the redemption of our public shares or the partnering transaction, and instead may search for an alternate partnering transaction (including, potentially, with the same target).

A public stockholder will be entitled to receive funds from the trust account only upon the earliest to occur of: (1) the completion of our partnering transaction and then, only in connection with those public shares that

 

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such stockholder has properly elected to redeem, subject to the limitations described in this prospectus; (2) the redemption of any public shares properly submitted in connection with a stockholder vote to amend our amended and restated certificate of incorporation (A) to modify the substance or timing of our obligation to allow redemptions in connection with our partnering transaction or to redeem 100% of our public shares if we do not complete our partnering transaction within 24 months from the closing of this offering (or 27 months following an agreement in principle event) or (B) with respect to any other provision relating to stockholders’ rights or pre-partnering transaction activity; and (3) the redemption of all of our public shares if we have not completed our partnering transaction within 24 months from the closing of this offering (or 27 months following an agreement in principle event), subject to applicable law. In no other circumstances will a public stockholder have any right or interest of any kind to or in the trust account. Holders of warrants will not have any rights to proceeds held in the trust account with respect to the warrants.

Our sponsor, executive officers and directors will enter into a letter agreement with us, pursuant to which they will agree to waive: (1) their redemption rights with respect to our common stock held by them in connection with the completion of our partnering transaction; (2) their redemption rights with respect to our common stock held by them in connection with a stockholder vote to approve an amendment to our amended and restated certificate of incorporation (A) to modify the substance or timing of our obligation to allow redemptions in connection with our partnering transaction or to redeem 100% of our public shares if we have not consummated our partnering transaction within 24 months from the closing of this offering (or 27 months following an agreement in principle event) or (B) with respect to any other provision relating to stockholders’ rights or pre-partnering transaction 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 partnering transaction within 24 months from the closing of this offering (or 27 months following an agreement in principle event) or during any extended time that we have to consummate a partnering transaction beyond 24 months (or 27 months following an agreement in principle event) during an Extension Period (although our sponsor, officers and directors will be entitled to liquidating distributions from the trust account with respect to any public shares they hold if we fail to complete our partnering transaction within the prescribed time frame).

 

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DIVIDEND POLICY

We have not paid any cash dividends on our common stock to date and do not intend to pay cash dividends prior to the completion of our partnering transaction. The payment of cash dividends in the future will be dependent upon our revenues and earnings, if any, capital requirements and general financial condition subsequent to completion of our partnering transaction. The payment of any cash dividends subsequent to our partnering transaction will be within the discretion of our board of directors at such time. In addition, our board of directors is not currently contemplating and does not anticipate declaring any stock dividends in the foreseeable future, except if we increase the size of this offering, in which case we will effect a stock dividend or other appropriate mechanism with respect to our Series F common stock immediately prior to the consummation of this offering in such amount as to maintain the number of founder shares at 20% of the outstanding shares of our common stock (excluding the private placement shares underlying the private placement units) upon the consummation of this offering. Further, if we incur any indebtedness in connection with our partnering transaction, our ability to declare dividends may be limited by restrictive covenants we may agree to in connection therewith.

 

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DILUTION

The difference between the public offering price per share of Series A common stock, assuming no value is attributed to the warrants included in the units we are offering pursuant to this prospectus or the private placement units, and the pro forma net tangible book value per share of our Series A common stock after this offering constitutes the dilution to investors in this offering. Such calculation does not reflect any dilution associated with the sale and exercise of warrants, including the private placement units, which would cause the actual dilution to the public stockholders to be higher, particularly where a cashless exercise is utilized. Net tangible book value per share is determined by dividing our net tangible book value, which is our total tangible assets less total liabilities (including the value of Series A common stock which may be redeemed for cash), by the number of outstanding shares of our Series A common stock.

At March 31, 2021, our net tangible book deficit was $(547,831) or approximately $(0.06) per share of Series F common stock. After giving effect to the sale of 30,000,000 shares of Series A common stock included in the units we are offering by this prospectus, the sale of the private placement units and the deduction of underwriting commissions and estimated expenses of this offering, our pro forma net tangible book value at March 31, 2021 would have been $5,000,006 or $0.44 per share, representing an immediate increase in net tangible book value (as decreased by the value of 27,233,070 shares of Series A common stock that may be redeemed for cash and assuming no exercise of the underwriters’ over-allotment option) of $0.50 per share to our sponsor as of the date of this prospectus and an immediate dilution of $9.56 per share or 95.6% to our public stockholders not exercising their redemption rights. The dilution to new investors if the underwriters exercise their over-allotment option in full would be an immediate dilution of $9.61 per share or 96.1%.

The following table illustrates the dilution to the public stockholders on a per share basis, assuming no value is attributed to the warrants included in the units or the private placement units:

 

     Without Over-Allotment     With Over-Allotment  

Public offering price

   $ 10.00     $ 10.00  

Net tangible book deficit before this offering

     (0.60     (0.60

Increase attributable to public stockholders

     0.50       0.45  
  

 

 

   

 

 

 

Pro forma net tangible book value after this offering and the sale of the private placement warrants

     0.44       0.39  
  

 

 

   

 

 

 

Dilution to public stockholders

   $ 9.56     $ 9.61  
  

 

 

   

 

 

 

Percentage of dilution to public stockholders

     95.6     96.1

For purposes of presentation, we have reduced our pro forma net tangible book value after this offering (assuming no exercise of the underwriters’ over-allotment option) by $272,330,700 because holders of up to approximately 90.8% of our public shares may redeem their shares for a pro rata share of the aggregate amount then on deposit in the trust account at a per-share redemption price equal to the amount in the trust account, calculated as of two business days prior to the consummation of our partnering transaction, including interest (which interest shall be net of taxes payable) divided by the number of shares of Series A common stock sold in this offering.

The following table sets forth information with respect to our sponsor and the public stockholders:

 

     Shares Purchased     Total Consideration     Average Price
Per Share
 
     Number      Percentage     Amount      Percentage  

Initial Stockholders(1)(2)

     7,500,000        19.5   $ 25,000        0.008   $ 0.003  

Private placement

     1,000,000        2.6     10,000,000        3.226   $ 10.00  

Public Stockholders(3)

     30,000,000        77.9     300,000,000        96.766   $ 10.00  
  

 

 

    

 

 

   

 

 

    

 

 

   
     38,500,000        100   $ 310,025,000        100.00  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

(1)

Assumes the full forfeiture of an aggregate of 1,125,000 shares that are subject to forfeiture by our sponsor depending on the extent to which the underwriters’ over-allotment option is exercised.

 

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(2)

Reflects a surrender of 2,875,000 shares of Series F common stock by our sponsor effected on April 8, 2021

(3)

Assumes our sponsor, or an affiliate of our sponsor, does not purchase any public units in this offering.

The pro forma net tangible book value per share after this offering (assuming that the underwriters do not exercise their over-allotment option) is calculated as follows:

 

     Without  Over-
Allotment
    With  Over-
Allotment
 

Numerator:

    

Net tangible book value before this offering

   $ (547,831   $ (547,831

Proceeds from this offering and sale of the private placement units(1)

     302,500,000       347,500,000  

Plus: Offering costs paid in advance, excluded from tangible book value

     528,536       528,536  

Less: Derivative warrant liabilities

     (14,649,999     (16,814,499

Less: Deferred underwriters’ commissions

     (10,500,000     (12,075,000

Less: Proceeds held in trust subject to redemption

     (272,330,70     (313,591,200
  

 

 

   

 

 

 
   $ 5,000,006     $ 5,000,006  
  

 

 

   

 

 

 

Denominator:

    

Series F common stock outstanding prior to this offering

     8,625,000       8,625,000  

Series F common stock forfeited if over-allotment is not exercised

     (1,125,000     —    

Series A common stock included in the units offered

     30,000,000       34,500,000  

Series A common stock included in units sold to our sponsor in a private placement

     1,000,000       1,090,000  

Less: shares subject to redemption

     (27,233,070     (31,359,120
  

 

 

   

 

 

 
     11,266,930       12,855,880  
  

 

 

   

 

 

 

 

(1)

Expenses applied against gross proceeds include offering expenses of $1,500,000 and underwriting commissions of $6,000,000 or $6,900,000 if the underwriter exercises its over-allotment option (excluding deferred underwriting fees). See “Use of Proceeds.”

 

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CAPITALIZATION

The following table sets forth our capitalization as of March 31, 2021 on a historical basis and as adjusted to give effect to the filing of our amended and restated certificate of incorporation, the sale of 30,000,000 units in this offering for $300,000,000 (or $10.00 per unit) and the sale of 1,000,000 private placement units for $10,000,000 (or $10.00 per unit), the surrender of shares of Series F common stock that occurred on April 8, 2021 and the application of the estimated net proceeds derived from the sale of such securities (and excludes gross proceeds from the sale of forward purchase units that may close substantially simultaneously with the consummation of our partnering transaction), assuming our sponsor, or an affiliate of our sponsor, does not purchase any public units in this offering:

 

     As of March 31, 2021  
     Actual     As Adjusted(2)  

Notes payable to related party(1)

   $ 171,111     $ —    

Deferred underwriting commissions

     —         10,500,000  

Derivative warrant liabilities(3)

     —         14,649,999  
  

 

 

   

 

 

 

Series A common stock, subject to redemption, -0- shares actual and 27,233,070 shares as adjusted(4)

     —         272,330,700  

Preferred stock, $0.0001 par value, actual — 1,000,000 shares authorized; none issued or outstanding; as adjusted — 10,000,000 shares authorized; none issued or outstanding

     —         —    

Series A common stock, $0.0001 par value; actual — 1,000,000 shares authorized, none issued or outstanding; as adjusted — 500,000,000 shares authorized; 3,766,930 shares issued and outstanding (excluding 27,233,070 shares subject to possible redemption)

     —         377  

Series B common stock, $0.0001 par value; actual — 1,000,000 shares authorized, none issued or outstanding; as adjusted — 80,000,000 shares authorized; none issued and outstanding

    

Series C common stock, $0.0001 par value; actual — 1,000,000 shares authorized, none issued or outstanding; as adjusted — 40,000,000 shares authorized, none issued or outstanding

     —         —    

Series F common stock, $0.0001 par value; actual — 20,000,000 shares authorized, 8,625,000 shares issued and outstanding; as adjusted — 40,000,000 shares authorized, 7,500,000 shares issued and outstanding(5)

     863       750  

Additional paid-in capital(6)

     24,137       5,889,624  

Accumulated deficit(7)

     (44,295     (890,745
  

 

 

   

 

 

 

Total shareholders’ equity (deficit)

   $ (19,296   $ 5,000,006  
  

 

 

   

 

 

 

Total capitalization

   $ 151,816     $ 302,480,705  
  

 

 

   

 

 

 

 

(1)

Our sponsor has agreed to loan us up to $300,000 under an unsecured promissory note to be used for a portion of the expenses of this offering. To date, we borrowed approximately $213,000 under the promissory note to be used for a portion of the expenses of this offering.

(2)

Assumes the full forfeiture of an aggregate of 1,125,000 shares that are subject to forfeiture by our sponsor depending on the extent to which the underwriters’ over-allotment option is exercised. The proceeds of the sale of such shares will not be deposited into the trust account, the shares will not be eligible for redemption from the trust account nor will they be eligible to vote upon the partnering transaction.

(3)

We will account for the 10,333,333 warrants to be issued in connection with this offering (including 10,000,000 warrants included in the units and 333,333 private placement warrants, assuming the underwriters’ over-allotment option is not exercised) in accordance with the guidance contained in Accounting Standards Codification 815-40. Such guidance provides that because the warrants do not meet

 

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  the criteria for equity treatment thereunder, each warrant must be recorded as a liability. Accordingly, we will classify each warrant as a liability at its fair value. This liability is subject to re-measurement at each balance sheet date. With each such re-measurement, the warrant liability will be adjusted to fair value, with the change in fair value recognized in our statement of operations. The warrants are also subject to re-evaluation of the proper classification and accounting treatment at each reporting period.
(4)

Upon the completion of our partnering transaction, we will provide our public stockholders with the opportunity to redeem their public shares for cash equal to their pro rata share of the aggregate amount then on deposit in the trust account, calculated as of two business days prior to the consummation of the partnering transaction, including interest (which interest shall be net of taxes payable), subject to the limitations described herein whereby our net tangible assets will be maintained at a minimum of $5,000,001 and any limitations (including, but not limited to, cash requirements) created by the terms of the proposed partnering transaction. The value of Series A common stock that may be redeemed is equal to $10.00 per share (which is the assumed redemption price) multiplied by 27,233,070 shares of Series A common stock, which is the maximum number of shares of Series A common stock that may be redeemed for a $10.00 purchase price per share and still maintain at least $5,000,001 of net tangible assets.

(5)

Actual share amount is prior to any forfeiture of founder shares by our sponsor. The “as adjusted” share amount assumes no exercise of the underwriters’ over-allotment option and the forfeiture of 1,125,000 founder shares by our sponsor.

(6)

The “as adjusted” additional paid-in capital calculation is equal to the “as adjusted” total stockholders’ equity of $5,000,006, less “as adjusted” common stock (par value) of $1,127, plus the “as adjusted” accumulated deficit of $890,745.

(7)

As adjusted accumulated deficit includes transaction costs associated with derivative warrant liabilities.

 

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

We are a newly incorporated blank check company incorporated as a Delaware corporation and formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar partnering transaction with one or more businesses. We have not selected any partnering transaction target and we have not, nor has anyone on our behalf, engaged in any substantive discussions, directly or indirectly, with any partnering transaction target. We intend to effectuate our partnering transaction using cash from the proceeds of this offering and the sale of the private placement units and forward purchase units, our capital stock, debt or a combination of cash, stock and debt.

The issuance of additional shares of our stock in a partnering transaction, including pursuant to the forward purchase agreement:

 

   

may significantly dilute the equity interest of investors in this offering;

 

   

may subordinate the rights of holders of common stock if preferred stock is issued with rights senior to those afforded our common stock;

 

   

could cause a change of control if a substantial number of shares of our common stock 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 stock ownership or voting rights of a person seeking to obtain control of us;

 

   

may adversely affect prevailing market prices for our units, Series A common stock and/or warrants; and

 

   

may not result in adjustment to the exercise price of our warrants.

Similarly, if we issue debt securities or otherwise incur significant indebtedness, it could result in:

 

   

default and foreclosure on our assets if our operating revenues after a partnering transaction 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 common stock;

 

   

using a substantial portion of our cash flow to pay principal and interest on our debt, which will reduce the funds available for dividends on our common stock if declared, 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.

 

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As indicated in the accompanying financial statements, as of March 31, 2021, we had no cash, a working capital deficit of approximately $548,000 and deferred offering costs of $529,000. Further, we expect to continue to incur significant costs in the pursuit of our acquisition plans. We cannot assure you that our plans to raise capital or to complete our partnering transaction will be successful. These factors, among others, raise substantial doubt about our ability to continue as a going concern.

Results of Operations and Known Trends or Future Events

We have neither engaged in any operations nor generated any revenues to date. Our only activities since inception have been organizational activities and those necessary to prepare for this offering. Following this offering, we will not generate any operating revenues until after completion of our partnering transaction. We will generate non-operating income in the form of interest income on cash and cash equivalents after this offering. There has been no significant change in our financial or trading position and no material adverse change has occurred since the date of our audited financial statements. After this offering, we expect to incur increased expenses as a result of being a public company (for legal, financial reporting, accounting and auditing compliance), as well as for due diligence expenses. We expect our expenses to increase substantially after the closing of this offering.

Liquidity and Capital Resources

Our liquidity needs have been satisfied prior to the completion of this offering through receipt of $25,000 from the sale of the founder shares to our sponsor and up to $300,000 in loans from our sponsor under an unsecured promissory note. To date, we borrowed approximately $213,000 under the promissory note to be used for a portion of the expenses of this offering. We estimate that the net proceeds from (1) the sale of the units in this offering, after deducting offering expenses of approximately $1,500,000 and underwriting commissions of $6,000,000 ($6,900,000 if the underwriters’ over-allotment option is exercised in full) (excluding deferred underwriting commissions of $10,500,000 (or up to $12,075,000 if the underwriters’ over-allotment option is exercised in full)), and (2) the sale of the private placement units for a purchase price of $10,000,000 (or $10,900,000 if the underwriters’ over-allotment option is exercised in full), will be $302,500,000 (or $347,500,000 if the underwriters’ over-allotment option is exercised in full). Of this amount, $300,000,000, or $345,000,000 if the underwriters’ over-allotment option is exercised in full, including $10,500,000 (or up to $12,075,000 if the underwriters’ over-allotment option is exercised in full) in deferred underwriting commissions, will be deposited into the trust account. The funds in the trust account will be invested only in United States government treasury bills with a maturity of 185 days or less or in money market funds investing solely in United States Treasuries. The remaining $2,500,000 will not be held in the trust account. In the event that our offering expenses exceed our estimate of $2,500,000, we may fund such excess with 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 our estimate of $1,500,000, the amount of funds we intend to be held outside the trust account would increase by a corresponding amount.

We intend to use substantially all of the funds held in the trust account, including any amounts representing interest earned on the trust account (which interest shall be net of taxes payable and excluding deferred underwriting commissions) and the proceeds from the sale of the forward purchase units to complete our partnering transaction. We may withdraw interest to pay taxes. We estimate our annual franchise tax obligations, based on the number of shares of our common stock authorized and outstanding after the completion of this offering, to be $200,000 per year, which is currently the maximum amount of annual franchise taxes payable by us as a Delaware corporation. Our annual income tax obligations will depend on the amount of interest and other income earned on the amounts held in the trust account. We expect the only taxes payable by us out of the funds in the trust account will be income and franchise taxes. We expect the interest earned on the amount in the trust account will be sufficient to pay our taxes. To the extent that our

 

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capital stock or debt is used, in whole or in part, as consideration to complete our partnering transaction, the remaining proceeds held in the trust account will be used as working capital to finance the operations of the target business or businesses, make other acquisitions and pursue our growth strategies.

Prior to the completion of our partnering transaction, we will have available to us $2,500,000 of proceeds held outside the trust account. We will use these funds primarily to identify and evaluate target businesses, perform business due diligence on prospective target businesses, travel to and from the offices or similar locations of prospective target businesses or their representatives or owners, review corporate documents and material agreements of prospective target businesses, structure, negotiate and complete a partnering transaction, and to pay taxes to the extent the interest earned on the trust account is not sufficient to pay our taxes.

In order to fund working capital deficiencies or finance transaction costs in connection with an intended partnering transaction, our sponsor, Post or its subsidiaries may, but are not obligated to, loan us funds as may be required. If we complete our partnering transaction, we may repay such loaned amounts out of the proceeds of the trust account released to us. In the event that our partnering transaction does not close, we may use a portion of the working capital held outside the trust account to repay such loaned amounts but no proceeds from our trust account would be used for such repayment. Up to $2,500,000 of such loans made to us may be convertible into units at a price of $10.00 per unit at the option of the lender. The units would be identical to the private placement units issued to our sponsor. The terms of such loans, if any, have not been determined and no written agreements exist with respect to such loans. We do not expect to seek loans from parties other than our sponsor, Post or its subsidiaries, if any, as we do not believe third parties will be willing to loan such funds and provide a waiver against any and all rights to seek access to funds in our trust account.

We expect our primary liquidity requirements during that period to include approximately $550,000 for legal, accounting, due diligence, travel, consulting and other expenses in connection with any partnering transactions; $150,000 for legal and accounting fees related to regulatory reporting obligations; $600,000 for fees paid to the non-employee directors on our board for their service on the board; $75,000 for NYSE continued listing fees; $960,000 for office space, administrative and support services; and approximately $65,000 for general working capital that will be used for miscellaneous expenses.

We do not believe we will need to raise additional funds following this offering in order to meet the expenditures required for operating our business. However, if our estimates of the costs of identifying a target business, undertaking in-depth due diligence and negotiating a partnering transaction are less than the actual amount necessary to do so, we may have insufficient funds available to operate our business prior to our partnering transaction. Moreover, we may need to obtain additional financing either to complete our partnering transaction or because we become obligated to redeem a significant number of our public shares upon completion of our partnering transaction, in which case we may issue additional securities or incur debt in connection with such partnering transaction.

Controls and Procedures

We are not currently required to maintain an effective system of internal controls as defined by Section 404 of the Sarbanes-Oxley Act. We will be required to comply with the internal control reporting requirements of the Sarbanes-Oxley Act for the fiscal year ending December 31, 2022. Only in the event that we are deemed to be a large accelerated filer or an accelerated filer, and no longer qualify as an emerging growth company, will we be required to comply with the independent registered public accounting firm attestation requirement on our internal control over financial reporting. Further, for as long as we remain an emerging growth company, we intend to take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the independent registered public accounting firm attestation requirement.

 

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Prior to the closing of this offering, we have not completed an assessment, nor has our independent registered accounting firm tested our systems, of internal controls. We expect to assess the internal controls of our target business or businesses prior to the completion of our partnering transaction and, if necessary, to implement and test additional controls as we may determine are necessary in order to state that we maintain an effective system of internal controls. A target business may not be in compliance with the provisions of the Sarbanes-Oxley Act regarding the adequacy of internal controls. Many small and mid-sized target businesses we may consider for our partnering transaction may have internal controls that need improvement in areas such as:

 

   

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

 

   

reconciliation of accounts;

 

   

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

 

   

evidence of internal review and approval of accounting transactions;

 

   

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

 

   

documentation of accounting policies and procedures.

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

Once our management’s report on internal controls is complete, we will retain an independent auditor to audit and render an opinion on such report when required by Section 404 of the Sarbanes-Oxley Act. The registered public accounting firm may identify additional issues concerning a target business’s internal controls while performing its audit of internal control over financial reporting.

Quantitative and Qualitative Disclosures about Market Risk

The net proceeds of this offering and the sale of the private placement units held in the trust account will be invested in United States government treasury bills with a maturity of 185 days or less or in money market funds investing solely in United States Treasuries and meeting certain conditions under Rule 2a-7 under the Investment Company Act. Due to the short-term nature of these investments, we believe there will be no associated material exposure to interest rate risk.

Off-Balance Sheet Arrangements; Commitments and Contractual Obligations; Quarterly Results

As of January 27, 2021, we did not have any off-balance sheet arrangements as defined in Item 303(a)(4)(ii) of Regulation S-K and did not have any commitments or contractual obligations. No unaudited quarterly operating data is included in this prospectus as we have conducted no operations to date.

Related Party Transactions

In January 2021, our sponsor purchased an aggregate of 11,500,000 founder shares for an aggregate purchase price of $25,000, with a purchase price of approximately $0.002 per share. On April 8, 2021, our sponsor surrendered 2,875,000 founder shares to us for no consideration resulting in an aggregate of 8,625,000 founder shares outstanding (up to 1,125,000 founder shares are subject to forfeiture by our sponsor depending on the extent to which the underwriters’ over-allotment option is exercised). As a result of such surrender, the per-share purchase price increased to approximately $0.003 per share. The number of founder shares issued

 

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was determined based on the expectation that the founder shares would represent 20% of the outstanding shares of common stock (excluding the private placement shares underlying the private placement units) upon the completion of this offering. As such, our sponsor will collectively beneficially own 20% of our issued and outstanding capital stock immediately after this offering (assuming our sponsor does not purchase units in this offering). Up to 1,125,000 founder shares are subject to forfeiture by our sponsor depending on the extent to which the underwriters’ over-allotment option is exercised.

We will enter into a services agreement pursuant to which we will pay Post and certain of its subsidiaries a total of $40,000 per month for office space, administrative and support services. Upon completion of our partnering transaction or any liquidation, we may cease paying some or all of these monthly fees. Pursuant to such agreement we will indemnify Post and its affiliates for (i) any claims made by us or a third party and resulting liabilities in respect of any investment opportunities sourced by them, (ii) any liability arising with respect to their activities in connection with our affairs and (iii) any services that are provided without a separate written agreement between us and Post or an affiliate of Post. Such indemnity will provide that the indemnified parties cannot access the funds held in our trust account.

Our sponsor, officers and directors or Post or its other subsidiaries will be reimbursed for any out-of-pocket expenses incurred in connection with activities on our behalf such as identifying potential target businesses and performing due diligence on suitable partnering transactions. Our audit committee will review on a quarterly basis all payments that were made by us to our sponsor, officers or directors or Post or its other subsidiaries and will determine which expenses and the amount of expenses that will be reimbursed. There is no cap or ceiling on the reimbursement of out-of-pocket expenses incurred by such persons in connection with activities on our behalf.

Our sponsor has agreed to loan us up to $300,000 under an unsecured promissory note to be used for a portion of the expenses of this offering. To date, we borrowed approximately $213,000 under the promissory note to be used for a portion of the expenses of this offering. These loans are non-interest bearing, unsecured and are due at the earlier of December 31, 2021 and the closing of this offering. These loans will be repaid upon completion of this offering out of the $1,500,000 of offering proceeds that has been allocated for the payment of offering expenses (other than underwriting commissions) not held in the trust account.

In addition, in order to fund working capital deficiencies or finance transaction costs in connection with an intended partnering transaction, our sponsor, Post or its subsidiaries may, but are not obligated to, loan us funds as may be required. If we complete our partnering transaction, we may repay such loaned amounts out of the proceeds of the trust account released to us. In the event that our partnering transaction does not close, we may use a portion of the working capital held outside the trust account to repay such loaned amounts but no proceeds from our trust account would be used to repay such loaned amounts. Up to $2,500,000 of such loans made to us may be convertible into units at a price of $10.00 per unit at the option of the lender. The units would be identical to the private placement units issued to our sponsor. The terms of such loans, if any, have not been determined and no written agreements exist with respect to such loans. We do not expect to seek loans from parties other than our sponsor, Post or its subsidiaries, if any, as we do not believe third parties will be willing to loan such funds and provide a waiver against any and all rights to seek access to funds in our trust account.

Our sponsor will commit, pursuant to a written agreement, to purchase an aggregate of 1,000,000 private placement units (or 1,090,000 if the underwriters’ over-allotment option is exercised in full) at a price of $10.00 per unit ($10,000,000 in the aggregate or $10,900,000 in the aggregate if the underwriters’ over-allotment option is exercised in full) in a private placement that will occur simultaneously with the closing of this offering. Each private placement warrant entitles the holder thereof to purchase one share of Series A common stock at a price of $11.50 per share, subject to adjustment as provided herein. The private placement units are identical to the units sold in this offering, subject to certain limited exceptions as described in this prospectus.

In addition, certain members of our management team, and officers and directors of Post and their affiliates, may purchase our securities in the open market following the IPO and enter into an agreement in

 

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accordance with the guidelines of Rule 10b5-1 under the Exchange Act to place limit orders, through an independent broker-dealer registered under Section 15 of the Exchange Act which is not affiliated with us nor part of the underwriting or selling group, to purchase our securities in the open market at market prices, subject to certain conditions.

In connection with the consummation of this offering, we will enter into a forward purchase agreement with our sponsor pursuant to which our sponsor will commit to purchase from us up to 10,000,000 forward purchase units, consisting of one share of Series B common stock, or a “forward purchase share,” and one-third of one warrant to purchase one share of Series A common stock, or a “forward purchase warrant,” for $10.00 per forward purchase unit, in an aggregate amount of up to $100,000,000, in a private placement that will close concurrently with the closing of our partnering transaction. The proceeds from the sale of these forward purchase units, together with the amounts available to us from the trust account (after giving effect to any redemptions of public shares) and any other equity or debt financing obtained by us in connection with the partnering transaction, will be used to satisfy the cash requirements of the partnering transaction, including funding the purchase price and paying expenses and retaining specified amounts to be used by the post-partnering transaction company for working capital or other purposes. To the extent that the amounts available from the trust account and other financing are sufficient for such cash requirements, our sponsor may purchase less than 10,000,000 forward purchase units. Pursuant to an investor rights agreement that we will enter into with our sponsor and Post and a forward purchase agreement that we will enter into with our sponsor on or prior to the closing of this offering, we may be required to register certain securities for sale under the Securities Act. These holders, and holders of warrants issued upon conversion of working capital loans, if any, will be entitled under each of the investor rights agreement and the forward purchase agreement to make up to three demands in any 12-month period that we register certain of our securities held by them for sale under the Securities Act and to have the securities covered thereby registered for resale pursuant to Rule 415 under the Securities Act. In addition, our sponsor will have the right to include certain of its securities in other registration statements filed by us. However, the investor rights agreement and the forward purchase agreement will provide that we will not be required to effect or permit any registration or cause any registration statement to become effective until the securities covered thereby are released from their lock-up restrictions, as described herein. We will bear the costs and expenses of filing any such registration statements.

JOBS Act

On April 5, 2012, the JOBS Act was signed into law. The JOBS Act contains provisions that, among other things, relax certain reporting requirements for qualifying public companies. We will qualify as an “emerging growth company” and under the JOBS Act will be allowed to comply with new or revised accounting pronouncements based on the effective date for private (not publicly traded) companies. We are electing to delay the adoption of new or revised accounting standards, and as a result, we may not comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for non-emerging growth companies. As a result, our financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates.

Additionally, we are in the process of evaluating the benefits of relying on the other reduced reporting requirements provided by the JOBS Act. Subject to certain conditions set forth in the JOBS Act, if, as an “emerging growth company,” we choose to rely on such exemptions we may not be required to, among other things: (1) provide an auditor’s attestation report on our system of internal controls over financial reporting pursuant to Section 404 of the Sarbanes-Oxley Act; (2) provide all of the compensation disclosure that may be required of non-emerging growth public companies under the Dodd-Frank Wall Street Reform and Consumer Protection Act; (3) comply with any requirement that may be adopted by the PCAOB regarding mandatory audit firm rotation or a supplement to the auditor’s report providing additional information about the audit and the financial statements (auditor discussion and analysis); and (4) disclose certain executive compensation-related items such as the correlation between executive compensation and performance and comparisons of the CEO’s compensation to median employee compensation. These exemptions will apply for a period of five years following the completion of this offering or until we are no longer an “emerging growth company,” whichever is earlier.

 

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PROPOSED BUSINESS

Company

PHPC is a newly incorporated blank check company incorporated as a Delaware corporation, formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar partnering transaction with one or more businesses, which we refer to throughout this prospectus as our “partnering transaction.” To date, our efforts have been limited to organizational activities as well as activities related to this offering. We have no specific business plan other than to enter into a partnering transaction. We have not selected any business with which to partner and have not, nor has anyone on our behalf, engaged in any substantive discussions, directly or indirectly, with any candidate with respect to a partnering transaction with us. Although we may pursue a partnering transaction in any industry, we intend to capitalize on the ability of our management team and our sponsor to partner with a business that has the potential to generate attractive risk-adjusted returns in the CPG industry.

Post and Our Sponsor

An affiliate of Post will act as our sponsor. Post is a consumer packaged goods holding company with a long history of value creation via strategic corporate actions and efficient capital allocation. None of Post’s business will directly be a source of returns for investors in our offering. While we expect Post to provide expertise, it is not obligated to and there is no guarantee it will source a partnering transaction. Post will not receive any additional compensation or finder’s fees from sourcing or providing financing for our partnering transaction. However, as a result of Post’s indirect ownership of our founder shares, private placement units and forward purchase units, it may derive economic benefits from such securities. The amount of such economic benefits to Post cannot yet be determined. Any financing, whether provided by Post or third parties, may negatively impact the value of our stockholders’ investment in us. See “Risk Factors —  Risks Relating to Our Search for, and Consummation of or Inability to Consummate, a Partnering Transaction —  We may issue notes or other debt securities, or otherwise incur substantial debt, to complete a partnering transaction, which may adversely affect our leverage and financial condition and thus negatively impact the value of our stockholders’ investment in us.” Any financing provided by Post is expected to be on terms, taken as a whole, that would be at least as favorable to us as could be obtained from a third party.

Post generated 335% in total shareholder return since its spin-off from Ralcorp Holdings in 2012 through May 10, 2021 — the highest among Post’s packaged food industry peers, despite being impacted by the pandemic’s effect on its foodservice business. See “Risk Factors — General Risk Factors — Past performance by Post and members of our management team may not be indicative of future performance of an investment in us.” To achieve these results, Post has transformed from a single-product participant in a secularly declining category into a growing, diversified enterprise across multiple categories.

 

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LOGO

 

1.

Fiscal year ended 9/30/2011. Reflects Net Sales for Post.

2.

Fiscal year ended 9/30/2020. Reflects Net Sales for Post and its equity investments, comprised of Post consolidated Net Sales of $5.7bn, which includes 100% of BellRing, plus $924 million in Net Sales for 8th Avenue.

This transformation was accomplished by utilizing the following strategic guiding principles:

 

   

Long-tenured management team. We believe Post has the longest-tenured management team among its publicly-traded packaged food industry peers, with its Chief Executive Officer, Chief Financial Officer, and General Counsel having joined Post in various capacities in 2011. This continuity and cohesive team structure has created a strong, collaborative culture with significant accumulated institutional knowledge and transaction expertise.

 

   

De-centralized operating structure. Post’s corporate management recognizes that the “operator” skill set is often different than the “capital allocation” or “M&A” skill set. As such, Post retains an operationally-focused management team to run each of its business units and centralizes the capital allocation function. This structure allows each of Post’s business units to achieve operational excellence and be agile and nimble, while remaining autonomous from, but accountable to, the corporate management team at Post. This also enables corporate management to focus on efficient capital allocation and accretive M&A and structured transactions on a holistic basis across the portfolio.

 

   

Creative and pragmatic approach to M&A. Post’s corporate management possesses a deep M&A proficiency, employing leverage and transaction structure to enhance returns. Unlike some corporations with M&A in their DNA, Post is not solely an asset accumulator, but rather seeks to monetize assets opportunistically to unlock shareholder value.

 

   

Broad access to deal flow. Given Post’s extensive M&A track-record and heavy use of the capital markets, corporate management has regular direct contact with various management teams, board members, and sell-side bankers. The Post team is well suited to transact in situations that require creativity, complexity, or structuring expertise.

 

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Appropriate use of leverage to enhance equity returns. Post’s corporate management actively manages its balance sheet and has a sophisticated understanding of the capital markets. Since its spin-off, Post has undertaken over 30 capital markets transactions and maintained leverage in a range of 4.0x to 6.0x for most of that time.

Post intends to apply these primary strategic principles to capitalize on the substantial deal flow and opportunity that management sees across the consumer sector. As such, we are seeking to partner with a business in an attractive category, with growth potential organically or through consolidation opportunities, margin upside potential, portfolio optionality, and an experienced management team. Post management believes that PHPC’s formation, and its position outside of the immediate Post corporate structure, greatly expands the potential universe of targets and target financial profiles that could potentially generate attractive returns for shareholders. We are open to assessing high-growth partners, yet prioritize other criteria, as outlined in Our Investment Criteria. The partnering transaction would provide the candidate business an efficient path to become public, backed by Post’s experience managing consumer products businesses, allocating capital, and building a foundation for future acquisitions and value creation. As a long-term partner, Post will enhance the potential candidate’s ability to generate risk-adjusted returns for stockholders.

Capitalizing on Post’s History

Post’s history is rooted in M&A as a lever for value-creation against an ever-evolving CPG category backdrop.

Post’s legacy dates back to 1895, when C. W. Post incorporated Postum Cereals Company and developed one of the first RTE cereals, Grape-Nuts, in 1897. The company became the first packaged food consolidator, as Postum Cereals Company acquired over a dozen companies between 1925 and 1929, expanding its product line to more than 60 products and eventually changing its name to General Foods Corporation.

Philip Morris acquired the business in 1985 and subsequently merged the business with Kraft in 1989. In 2007, Kraft was separated from Philip Morris, and in 2008, the Post cereals business was split-off from Kraft and combined with Ralcorp, a manufacturer of private label packaged food. Ultimately, Post was spun-off from Ralcorp and became a separate, standalone company, effective February 3, 2012.

Post’s character as an early food industry consolidator re-emerged when it once again became a standalone public company. A component of management’s initial mandate was to consolidate the RTE cereal category. At the same time, the category began to experience a more pronounced shift in consumption, after decades of low-to-mid single digit growth. Consumers began to exhibit a preference for low-carbohydrate diets, natural ingredients, or non-processed foods, and were substituting protein-based options for cereals. In the face of enhanced competition in a growth-constrained environment, Post developed a diversification strategy that prioritized performance stability and free cash flow generation. Management recognized early and positioned its portfolio accordingly around long-term consumer trends. To diversify its cereal offerings, some of management’s first acquisitions were focused on building a foothold in protein products relevant to the breakfast daypart, both for at-home and on-the-go eating occasions. The acquisitions of Michael Foods and Premier Protein allowed Post to unlock desired strategic diversity. Post later was able to translate those early actions into future value creation when it carved out BellRing, which held Post’s active nutrition businesses including Premier Protein, highlighting that Post is not an asset accumulator, and instead seeks to crystallize value when possible to maximize long-term returns for shareholders. In total, Post has acquired 16 businesses since 2012, growing net sales nearly six times and Adjusted EBITDA over five times.

 

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LOGO

 

1.

Post’s fiscal year end is September 30.

Central to Post’s value creation strategy is the simple notion of accessing capital at a reasonable cost and investing the capital in consumer assets with appropriate risk-adjusted return potential. Over its history, Post has been an active issuer in different capital markets including high-yield debt (both term loans and bonds), convertible preferred equity, mandatory convertible equity, and common equity. In addition, Post has also partnered with private equity capital providers (via its formation of 8th Avenue), as well as the public equity markets (via its BellRing carve-out IPO). Post management views the market for blank check companies as a natural extension of this strategy of leveraging its capital base through creative financial structures.

Post management believes that the current combination of macro, market, and contextual opportunity have combined to make the present moment the right time to explore value-accretive transactions where Post can apply its core M&A skill set outside of the immediate Post corporate structure. Both Post shareholders and PHPC stockholders have the opportunity to benefit from the formation of PHPC and the complementary, aligned objectives that will guide its pursuit of value creation.

Differentiated Sponsor

Our sponsor is a wholly-owned subsidiary of Post. Post operates as a holding company for six distinct businesses today. Four of the businesses are wholly-owned, including Post Consumer Brands, Weetabix, Foodservice, and Refrigerated Retail. Two of the businesses are held as investments in non-wholly owned subsidiaries. BellRing is Post’s historical active nutrition business. Post completed an IPO of a minority interest in BellRing in October 2019, monetizing a 28.8% stake in the business while retaining 71.2% for upside in the public markets. 8th Avenue is Post’s historical private brand business, which Post capitalized separately with investments from third parties in October 2018, retaining a 60.5% stake for future upside potential and optionality. Post is familiar with operating as a public company with a complex organizational structure, making it an ideal partner to PHPC.

Post’s operating model with its existing subsidiaries is similar to the expected relationship with our ultimate partner, making Post uniquely qualified to sponsor our business. Each of Post’s six businesses has its own management and operating structure, while capital allocation and M&A are centrally-managed by Post. The subsidiary businesses are unified, but not operationally integrated, by select shared services across the portfolio related to food safety, regulatory and compliance oversight; treasury; finance; investor relations; tax; select information technology; human resources; and corporate legal. De-centralization allows each business to flexibly and quickly respond to market movements, and enables them to be separated in the future without significant disintegration effects or stranded costs.

 

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Stemming from its own strategic principles, Post intends to provide the following support to the ultimate partner as sponsor:

 

   

Consumer products industry expertise and relationships. Post’s management team has a collective 100+ years of industry experience in consumer products. Rob Vitale additionally serves on the board of directors of Energizer Holdings, Inc., a publicly-traded company operating in the household products category. The management team’s relationships with business managers and operators across all corporate functions, as well as among the financial communities that invest in CPG businesses, provides the partnering candidate access to best-in-class leadership and strategic acumen.

 

   

M&A experience and capabilities, including access to deal flow. Post has completed 16 acquisitions since 2012, building the relationships that place it at the nexus of deal flow between strategic and sponsor transactions, while developing the resources and experience to move quickly and decisively. Since future M&A opportunity is a major consideration in our selection of an ultimate partner, Post would be a valuable resource.

 

 

LOGO

 

1.

Transformative acquisitions are defined as transactions with a purchase price >$1,000 million.

 

   

Tax and structuring expertise and resources. Post’s own corporate organization and transaction experience provide administrative resources and third party relationships that will help optimize corporate and deal structure.

 

   

Capitalization formation and ongoing balance sheet management. Post already provides treasury services to its business units as well as to its affiliate investments under master services agreements, so an extension of its guidance to our business would be a natural step to leverage its expertise. Post takes a thoughtful, appropriately aggressive, and proactive approach to balance sheet management, having flexed up and down leverage for acquisitions since its spin-off.

 

   

Experienced manager of a public company. Post management has deep expertise in leading a public company. Post intends to leverage its experience to support the partnering candidate as it enters the public markets for the first time.

 

   

Potential shared services. While we will not be integrated into Post as a wholly-owned subsidiary, we expect to have a similar relationship to the sponsor as Post’s current subsidiaries. Post and management will take into account potential revenue and cost synergies that might be available based on common capabilities, customers, operations, or distribution channels in evaluating potential partnering opportunities; Post may be able to offer certain administrative services to leverage costs across a larger portfolio.

Post aims to help build a foundation for our long-term success, and will lend its expertise, resources, and guidance, backed by its initial financial commitment, to start our journey as a public company.

Immediately prior to this proposed public offering our sponsor owned 100% of our capital stock, consisting of shares of Series F common stock which will automatically convert at the time of our partnering transaction, or earlier at the option of the holder, into shares of Series B common stock on a one-for-one basis. In

 

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connection with our partnering transaction, our sponsor has agreed to purchase 10,000,000 forward purchase units consisting of one share of Series B common stock and one-third of a forward purchase warrant. Following our partnering transaction, each share of Series B common stock entitles the holder to ten votes per share which differs from the typical capital structure of many other special purpose acquisition companies. Assuming that the underwriters do not exercise their over-allotment option, that our sponsor forfeits an aggregate of 1,125,000 founder shares, that there are 38,500,000 shares of our common stock outstanding after this offering, that the issuance of 10,000,000 forward purchase units to our sponsor pursuant to the forward purchase agreement and that our sponsor, or an affiliate of our sponsor, does not purchase any public units in this offering are the only additional equity securities issued in connection with our partnering transaction, our sponsor is expected to own approximately 38% of the outstanding shares of our common stock and approximately 85% of the voting power of our outstanding common stock immediately following the closing of our partnering transaction. We anticipate that our sponsor’s voting power and equity ownership may be substantially diluted in connection with our partnering transaction, either from the issuance of new shares of common stock in exchange for the capital stock of the target, the issuance of our capital stock to third party investors providing additional funding to our company in connection with the partnering transaction, or both. However, until such time, our sponsor and Post will have the ability to exercise control over our affairs, policies and operations, such as the appointment of management, the issuance of additional shares of our common stock or other securities, the payment of dividends on our common stock, the incurrence of debt by us and over matters requiring stockholder approval, including the election of directors, amendments of our organizational documents and any change of control of our company. Our sponsor may have interests that differ from yours and may vote in a way with which you disagree and which may be adverse to your interests.

Post’s Investment Track Record Is Highly Relevant Across the Consumer Landscape

When Post became a standalone public company in 2012, it was a single-category business operating in the highly-competitive RTE cereal category with concentrated distribution channels in food, drug, mass, and club, offering only center-of-store products. Since then, Post has transformed into a dynamic, multi-category food company with diversified income streams and portfolio optionality. Post’s experience is relevant across the CPG industry as many categories face similar dynamics.

A core element of Post’s strategy relates to empowering management teams to operate toward a model that prioritizes top-line stability, margin enhancement, free cash flow generation, and agile responses to consumer preferences. The de-centralized model is intentionally designed to increase each individual unit’s flexibility, accountability, and entrepreneurship. Post’s performance demonstrates management’s ability to effectively incentivize and guide capital allocation decisions without crafting or developing each unit’s specific operating or go-to-market strategy.

Layered on top of organic growth is a discerning approach to inorganic expansion. Management has acquired 16 companies ranging from sub-$100 million to ~$2.45 billion in size since 2012. Despite the broad diversity in size, category, geography, and other business characteristics, Post’s strategy has been consistent. That is, to build leadership positions in categories with attractive dynamics and to diversify the total portfolio by expanding into new categories and channels, while addressing secular themes in food to insulate the portfolio from potential dietary, lifestyle or economic shifts. Post utilizes tax benefits (as appropriate and available) and aims to extract synergies where possible, using integration expertise to buy down the effective purchase multiple and enhance value creation. However, given Post’s de-centralized operating structure and diversified portfolio approach, synergies are not a pre-requisite for pursuing an acquisition that makes strategic sense or unlocks long-term strategic value.

Adherence to its upfront acquisition criteria, combined with effective integration that does not prioritize extreme cost-focused synergy extraction, has enhanced the return of Post’s portfolio and resulted in a strong track record of nearly all M&A targets performing ahead of the acquisition case under Post’s stewardship.

 

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Post’s results with its own business are a clear indicator of its track record. Post has driven attractive total returns for its shareholders and has delivered returns in excess of its peers since its formation.

 

 

LOGO

Post has also monetized assets opportunistically, using structured M&A to generate return while simultaneously retaining potential future upside. On October 1, 2018, Post completed an independent capitalization of 8th Avenue, providing gross proceeds to Post of $875 million while allowing Post to retain 60.5% in common equity post-closing. 8th Avenue is now a deconsolidated equity investment that is owned jointly with third party investors. On October 21, 2019, BellRing completed an initial public offering, providing net proceeds to Post of $524 million while allowing Post to retain a 71.2% ownership stake. BellRing remains fully-consolidated in Post’s financial results. Based on its current valuation in the public equity markets as of December 31, 2020, BellRing has achieved a more than six times increase in the entity’s enterprise value since the businesses were acquired and combined by Post in 2014. Post is therefore positioned to continue to realize value from growth in these investments, while still having recovered nearly all of its initial cash investment in both assets, providing ongoing strategic and portfolio optionality.

 

 

 

LOGO

 

Note: Entry enterprise value represents the cumulative headline purchase price paid for the assets that comprise the ultimate company

 

1.

Current market data per FactSet as of 12/31/2020. CAGR is calculated between the closing date of the final asset acquired at entry through current market data as of 12/31/2020.

2.

2018 enterprise value per Lender Presentation published in connection with the 8th Avenue capitalization in October 2018.

 

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As the sole member of our sponsor, Post will be providing us with differentiated expertise as a result of its track record of identifying high potential businesses as well as its differentiated access to a deep network of investors worldwide. Additionally, Post’s franchise strength brings capital, credibility, and institutional know-how to execute the partnering transaction quickly.

Our Business Strategy

Our strategy is to identify, partner with and, after our partnering transaction, fundamentally enhance a company in the public markets. We intend to partner with a company in the consumer products industry that complements the experience and expertise of our management team and is a business to which we believe we can add value.

Our management team is deeply familiar with the trends of our target industries and brings an investing approach that offers multiple competitive advantages in sourcing, evaluating and executing on opportunities, including:

 

   

Long-term investment horizon. We take a long-term, strategic view when evaluating our various operating businesses and are less concerned with seeking profits based on near-term volatility or temporary market disruptions.

 

   

Attractive risk-adjusted returns. We believe we can create significant value through efficient capital allocation, appropriately aggressive balance sheet management and a business model that focuses on outsized growth prospects and free cash flow generation.

 

   

Sophisticated transaction structuring to enhance value. We will be creative in our deal structures in order to maximize value creation for our prospective investors and shareholders.

 

   

Differentiated partner sourcing across consumer sectors. Post management is at the nexus of deal flow for both strategics and sponsors. We believe that the capabilities and connections of our management team, in combination with those of Post, will provide us with a differentiated pipeline of partnering opportunities that would be difficult for other participants in the M&A markets to replicate.

 

   

Speed and agility to consummate a partnering transaction. Our team has proven managerial expertise in deal execution having previously acquired and divested a number of businesses. We believe that we will be able to conduct candidate sourcing, screening, diligence and execution thoughtfully and efficiently as opportunities arise.

Our Investment Criteria

We have identified general criteria and guidelines for selecting an appropriate target, which we believe are important in evaluating prospective partnering businesses:

 

   

Fundamental business value. We look for businesses with consumer utility, strong brand awareness, and unique value propositions anchored by effective distribution and solid household penetration. We are also looking for businesses that are future-forward and disruptive in the way that they operate and/or the value proposition that they offer to consumers.

 

   

Attractive categories within the consumer products industry broadly. Categories where competitive dynamics remain supportive of growth opportunities, there are pockets of growth or pent-up demand, adjacency opportunities, multiple routes to market, or consolidation potential.

 

   

Well-established strategic moat. Entrenched, defensible leadership positions in core growth categories.

 

   

Strong margin potential. Attractive gross margin and adjusted EBITDA margin performance with identifiable opportunities for organic growth and operating leverage through increased scale.

 

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Strong free cash flow capability. Limited capital expenditure needs and modest working capital requirements to drive strong cash generation.

 

   

Portfolio optionality. Our goal is to build multiple paths to value creation, either with in-bound or out-bound M&A. We favor businesses with platform opportunities, where the structure of a candidate enables building or disaggregating consumer products businesses over time.

 

   

Experienced management team. We will seek to partner with deep, experienced and talented management teams to lead the business and have responsibility for driving operating results.

 

   

Desire to become a standalone public company. We will seek to partner with a business that has a desire to become a standalone public company and retain its economic autonomy.

These criteria and guidelines are not intended to be exhaustive. Further, we intend to use these criteria and guidelines in evaluating acquisition opportunities, but we may decide to enter into our partnering transaction with a candidate that does not meet these criteria and guidelines. Any evaluation relating to the merits of a particular partnering transaction may be based, to the extent relevant, on these general criteria and guidelines, as well as other considerations, factors and criteria deemed relevant by our management in effecting our partnering transaction consistent with our business objectives. In the event that we decide to enter into our partnering transaction with a candidate that does not meet the above criteria and guidelines, we will disclose that the candidate does not meet the above criteria in our shareholder communications related to our partnering transaction, which, as discussed in this prospectus, would be in the form of tender offer documents or proxy solicitation materials that we would file with the SEC.

While our Series A, Series B and Series C common stock capital structure with its low vote, high vote and no vote, respectively, features differs from the typical capital structure of many other special purpose acquisition companies we expect to maintain this capital structure following our partnering transaction. However, maintenance of this capital structure is not a condition for us to evaluate acquisition opportunities. Although we are not aware of and are unable to determine at this time the criteria on which we would base our decision regarding whether to engage in a partnering transaction that would eliminate our Series B common stock or its high vote feature we may, in our sole discretion, seek to amend our amended and restated certificate of incorporation to change this feature.

Our Competitive Strengths

The sourcing, valuation, diligence, and execution capabilities of our management team and Post will provide us with a significant pipeline of opportunities from which to evaluate and select a business that will benefit from our expertise. Our competitive strengths include the following core principles by which we govern ourselves:

 

   

Long-term orientation. Closing our partnering transaction is important but we are intensely focused on long-term share price performance and the interests of common stockholders post-closing.

 

   

Partnership model. We are not reliant on finding a company which needs operational improvement, cost cutting or replacing senior management. We are not activist investors. We are not buyout specialists. We are not short-term promoters. We have a long-term partnership mentality and collaborative investment model which is grounded and driven by our belief in fairness and alignment of interests.

 

   

Committed co-investment capital. Post intends to utilize its balance sheet to co-invest alongside public market investors. We believe that our initial committed capital in conjunction with our aligned economic interests will allow us to partner with a high quality company.

 

   

Continued ownership. We are focused on partnering with management teams who are focused on long- term compounded growth and existing owners who may want to continue ownership in a high

 

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quality asset but need to provide liquidity to existing stockholders and/or limited partners. PHPC provides an ability to transition ownership to the public market, which is deeper and more liquid than the private market, in a disciplined fashion and for existing owners to share in the future upside potential over the long term.

 

   

Deep experience of our sponsor and our management team. We believe that our ability to leverage the operational experience of Post, which has completed over 16 acquisitions since 2012 across a wide spectrum of size, subsector, and ownership structure, will provide us with a distinct advantage in being able to source, diligence, and add value post-closing of the partnering transaction.

 

   

Differentiated sourcing channels with leading industry, private equity, and venture capital relationships. Our management team and sponsor believe the capabilities and connections associated with our management team will provide us with a differentiated pipeline of partnering opportunities that would be difficult for other participants in the market to replicate. We expect these sourcing capabilities will be further bolstered by our management team’s reputation and deep industry, private equity, and venture capital relationships.

 

   

Investing experience. Our management team and sponsor believe that our management’s track record of identifying and sourcing transactions in the consumer sector positions us well to appropriately evaluate potential partnering candidates and select one that will be well received by the public markets and our stockholders.

 

   

Post-closing value-add capabilities and requirements. Our management team and sponsor believe that our combined expertise and reputation will allow us to drive meaningful value post-closing with the partner company. If our value-add is not readily identifiable, then we will choose not to execute that partnering transaction.

We believe our ability to complete a partnering transaction will be enhanced by our having entered into a forward purchase agreement with our sponsor pursuant to which our sponsor will commit to purchase from us up to 10,000,000 forward purchase units, each consisting of one forward purchase share and one-third of one forward purchase warrant, for $10.00 per forward purchase unit, in an aggregate amount of up to $100,000,000, in a private placement that will close concurrently with the closing of our partnering transaction. The proceeds from the sale of these forward purchase units, together with the amounts available to us from the trust account (after giving effect to any redemptions of public shares) and any other equity or debt financing obtained by us in connection with the partnering transaction, will be used to satisfy the cash requirements of the partnering transaction, including funding the purchase price and paying expenses and retaining specified amounts to be used by the post-partnering transaction company for working capital or other purposes. To the extent that the amounts available from the trust account and other financing are sufficient for such cash requirements, our sponsor may purchase less than 10,000,000 forward purchase units. The terms of the forward purchase warrants will generally be identical to the terms of the redeemable warrants included in the units being issued in this offering.

Our Process

In evaluating a prospective partnering candidate, we expect to conduct a thorough due diligence review which may encompass, among other things, meetings with incumbent management and employees and inspection of physical assets, as well as a review of financial, operational, legal and other information that will be made available to us. We will employ third party diligence to support our internal efforts where appropriate.

We are not prohibited from pursuing a partnering transaction with a business that is owned by our sponsor or any of the related companies, or making the acquisition through a joint venture or other form of shared ownership with any of them. In the event we seek to complete our partnering transaction with a target that is owned by one of the related companies, a committee of our independent and disinterested directors will obtain

 

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an opinion from an independent investment banking firm or another accounting, valuation or appraisal firm that such partnering transaction is fair to our company from a financial point of view. However, we are not required to obtain such an opinion in any other context.

Members of our management team may directly or indirectly own our securities following this offering, and accordingly, they may have a conflict of interest in determining whether a particular candidate is an appropriate business with which to effectuate our partnering transaction. Further, each of our officers and directors may have a conflict of interest with respect to evaluating a particular partnering transaction if the retention or resignation of any such officers and directors was included by a candidate business as a condition to any agreement with respect to our partnering transaction.

As described under “Management — Conflicts of Interest,” each of our officers and directors has, and any of them in the future may have, additional fiduciary or contractual obligations to one or more other entities, including, in certain cases, to Post, pursuant to which such officer or director may be required to present a partnering transaction opportunity to such entities before he or she presents such opportunity to us. Also, none of our sponsor or any of our directors and officers is prohibited from sponsoring, investing or otherwise becoming involved with any other blank check companies, including in connection with their partnering transactions. Accordingly, if any of our officers or directors becomes aware of a partnering transaction opportunity to which he or she has then-current fiduciary or contractual obligations to present such opportunity to another entity, including, in certain cases, to Post, he or she may only present such opportunity to us if such other entity including, in certain cases, to Post, rejects the opportunity. Our amended and restated certificate of incorporation will provide that we renounce our interest in any corporate opportunity offered to any director or officer unless such opportunity is expressly offered to such person solely in his or her capacity as a director or officer of our company, such opportunity is one we are legally and contractually permitted to undertake and would otherwise be reasonable for us to pursue, and such person has no fiduciary or contractual obligation to present the opportunity to any other person or entity, including, in certain cases, to Post. We do not believe, however, that the fiduciary, contractual or other obligations or duties of our officers or directors will materially affect our ability to complete our partnering transaction. We believe that potential conflicts with Post are naturally mitigated by the differing nature of the investments Post would typically consider most synergistic to the existing Post businesses and the types of transactions we expect to find most attractive based, in part, on transaction size and ability to operate as a standalone public company. Notwithstanding our belief regarding natural mitigation, Post and its subsidiaries may compete with us for acquisition opportunities that fall within Post’s investment objectives or strategies. A decision by Post to pursue an opportunity would preclude us from pursuing it and could have a negative impact on our ability to complete our partnering transaction.

You should not rely on the historical record or performance of Post or our management team as indicative of the future performance of an investment in us or the returns we will, or are likely to, generate going forward. See “Risk Factors — General Risk Factors — Past performance by Post and members of our management team may not be indicative of future performance of an investment in us.”

 

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Our Management Team

Our experienced management team is well suited to identify and execute an attractive partnering transaction for our shareholders. Our management team is led by Robert V. Vitale as President and Chief Investment Officer, Bradly A. Harper as Chief Financial Officer, Jeff A. Zadoks as a member of our board of directors, and Jim Dwyer, Jennifer Kuperman, Dave Peacock and David Taiclet who will become members of our board of directors upon the completion of this offering.

 

   

Robert V. Vitale – President and Chief Investment Officer. Mr. Vitale has served as our President and Chief Investment Officer since January 2021. Mr. Vitale has also served as President and Chief Executive Officer and a member of the board of directors of Post since November 2014. He joined Post during the time of its spinoff from Ralcorp and was Post’s Chief Financial Officer from 2011 to 2014. Mr. Vitale is the Executive Chairman of BellRing, of which Post is the majority stockholder. Mr. Vitale previously served as President and Chief Executive Officer of AHM Financial Group, LLC, a diversified provider of insurance brokerage and wealth management services, from 2006 to 2011. Prior to AHM Financial Group, LLC, Mr. Vitale was a Partner of Westgate Equity Partners, LLC, a consumer-oriented private equity firm, and started his career at Boatmen’s Bancshares and KPMG. Mr. Vitale also serves on the board of directors of 8th Avenue and Energizer Holdings, Inc.

 

   

Bradly A. Harper – Chief Financial Officer. Mr. Harper has served as our Chief Financial Officer since January 2021. Mr. Harper has also served as Senior Vice President, Chief Accounting Officer and Principal Accounting Officer of Post since December 1, 2018. Mr. Harper served as the Vice President and Corporate Controller of Post from November 2014 to December 2018 and the Director of Corporate Accounting and Reporting of Post from December 2011 until November 2014. Prior to joining Post, Mr. Harper served as Assistant Controller of Savvis, Inc., a global leader in cloud infrastructure and hosted IT solutions for enterprises.

 

   

Jeff A. Zadoks – Director. Mr. Zadoks has served as a member of our board of directors since January 2021. Mr. Zadoks has also served as Executive Vice President of Post since November 2017 and Chief Financial Officer of Post since 2014. He joined Post in 2011 as Corporate Controller. Mr. Zadoks previously served as Senior Vice President and Chief Accounting Officer of RehabCare Group, a national rehabilitation services company. Prior to RehabCare, Mr. Zadoks was the Corporate Controller at MEMC Electronic Materials (SunEdison), and started his career in the audit practice at KPMG.

 

   

Jim Dwyer – Director. Mr. Dwyer has served as a member of our board of directors since May 25, 2021. Mr. Dwyer has been the Chairman of the board of directors of 8th Avenue since May 2020 and served as its Chief Executive Officer from January 2018 until May 2020. Mr. Dwyer served as the President and CEO of Michael Foods, an operating company of Post, from October 2009 until February 2018.

 

   

Jennifer Kuperman – Director. Ms. Kuperman has served as a member of our board of directors since May 25, 2021. Ms. Kuperman was Head of International Corporate Affairs at Alibaba Group Holding Limited, a multinational conglomerate holding company specializing in eCommerce, retail, internet and technology, from April 2016 until January 2021 and served as Vice President, International Corporate Affairs at Alibaba Group Holding Limited from August 2014 to April 2016. Prior to joining Alibaba Group Holding Limited, Ms. Kuperman was Senior Vice President of Corporate Brand and Reputation at Visa Inc., a global payments technology company, from April 2013 to August 2014 and Chief of Staff, Officer of the Chairman and Chief Executive Officer at Visa Inc. from August 2010 to April 2013. Ms. Kuperman also served as Head of Global Corporate Communications and Citizenship at Visa Inc. from August 2008 to July 2010 and Head of Employee and Client Communication at Visa Inc. from August 2004 to June 2008. Ms. Kuperman serves on the board of directors of Post and on the board of directors of BellRing. Ms. Kuperman also serves on the board of directors of CoachArt, a nonprofit organization that provides arts and recreational opportunities to youth with chronic and life-threatening illnesses.

 

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Dave Peacock – Director. Mr. Peacock has served as a member of our board of directors since May 25, 2021. Mr. Peacock has served as President and Chief Operating Officer of Schnucks Markets since May 2017. Prior to joining Schnucks’ management team, he was on the board of advisors for the firm as well as founder and Chairman of Vitaligent, LLC, a multi-unit restaurant franchisee. Mr. Peacock served as Senior Advisor to Anheuser-Busch from February 2012 until June 2012, President of Anheuser-Busch from November 2008 until January 2012, Vice President of Marketing at Anheuser-Busch from October 2007 until November 2008, and Vice President of Business Operations, Anheuser-Busch Incorporated from December 2004 until September 2007.

 

   

David L. Taiclet – Director. Mr. Taiclet has served as a member of our board of directors since May 25, 2021. Mr. Taiclet has served as General Partner and Managing Director of the Lewis & Clark Partners AgriFood Investment Group since November 2018. Mr. Taiclet served in several leadership positions for 1800Flowers.com from May 2006 until May 2017 as CEO of Fannie May Confections Brands from May 2006 until October 2008 and, ultimately, as President of the Gourmet Food Group from October 2008 until May 2017. Mr. Taiclet held numerous positions in the Strategy and Business Development Group of Cargill, Inc., an international marketer, processor and distributor of food, financial and industrial products.

Partnering Transaction

NYSE listing rules require that our partnering transaction must be with one or more target businesses that have an aggregate fair market value equal to at least 80% of the value of the trust account (excluding any deferred underwriting commissions and taxes payable on interest earned on the trust account) at the time of our signing a definitive agreement in connection with our partnering transaction. We refer to this as the 80% of net assets test. If our board of directors is not able to independently determine the fair market value of the target business or businesses, we will obtain an opinion from an independent investment banking firm or another independent entity that commonly renders valuation opinions with respect to the satisfaction of such criteria. We do not currently intend to purchase multiple businesses in unrelated industries in conjunction with our partnering transaction, although there is no assurance that will be the case.

We anticipate structuring our partnering transaction so that the post-transaction company in which our public stockholders own or acquire shares will own or acquire 100% of the outstanding equity interests or assets of the target business or businesses. We may, however, structure our partnering transaction such that the post-transaction company owns or acquires less than 100% of such interests or assets of the target business in order to meet certain objectives of the target management team or stockholders or for other reasons, but we will only complete such partnering transaction if the post-transaction company owns or acquires 50% or more of the outstanding voting power of the outstanding capital stock of the target or otherwise acquires an interest in the target business sufficient for it not to be required to register as an investment company under the Investment Company Act. Even if the post-transaction company owns or acquires 50% or more of the outstanding voting power of the outstanding capital stock of the target, our stockholders prior to our partnering transaction may collectively own a minority interest (economic and/or voting) in the post-partnering transaction company, depending on, among other things, valuations ascribed to the target and us in our partnering transaction. For example, we could pursue a transaction in which we issue a substantial number of new shares of common stock in exchange for all of the outstanding capital stock, shares or other equity interests of a target business, issue a substantial number of new shares to third parties in connection with financing our partnering transaction or our sponsor could convert some or all of its Series B common stock into Series A common stock. In such cases, we would acquire a 100% interest in the target. However, as a result of the issuance of a substantial number of new shares of common stock or other changes to our capital structure, our stockholders immediately prior to such transaction (including our sponsor) could own less than a majority of our outstanding shares of common stock subsequent to such transaction and therefore a minority interest (economic and/or voting) in the post-transaction company. If less than 100% of the outstanding equity interests or assets of a target business or businesses are owned or acquired by the post-transaction company, the

 

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portion of such business or businesses that is owned or acquired by us is what will be valued for purposes of the 80% of net assets test. If our partnering transaction involves more than one target business, the 80% of net assets test will be based on the aggregate value of all of the target businesses. Notwithstanding the foregoing, if we are not then listed on the NYSE for whatever reason, we would no longer be required to meet the foregoing 80% of net assets test.

Prior to the effectiveness of the registration statement of which this prospectus forms a part, we filed a Registration Statement on Form 8-A with the SEC to voluntarily register our securities under Section 12 of the Exchange Act. As a result, we are subject to the rules and regulations promulgated under the Exchange Act. We have no current intention of filing a Form 15 to suspend our reporting or other obligations under the Exchange Act prior or subsequent to the completion of our partnering transaction.

Sourcing of Potential Partnering Transaction Targets

We believe our management team’s significant transaction experience and industry relationships with companies will provide us with a substantial number of potential partnering transaction targets. Over the course of their careers, the members of our management team have developed a broad network of contacts and corporate relationships. This network has grown through the activities of our management team sourcing, acquiring, financing and selling businesses, our management team’s relationships with sellers, financing sources and target management teams and the experience of our management team in executing transactions under varying economic and financial market conditions.

We believe this network provides our management team with a robust and consistent flow of acquisition opportunities which were proprietary or where a limited group of investors were invited to participate in the sale process. We believe that the network of contacts and relationships of our management team will provide us with important sources of acquisition opportunities. In addition, we anticipate that target business candidates will be brought to our attention from various unaffiliated sources, including investment market participants, private equity funds and large business enterprises seeking to divest non-core assets or divisions.

We are not prohibited from pursuing a partnering transaction with a business that is owned by our sponsor or any of the related companies, or making the acquisition through a joint venture or other form of shared ownership with any of them. In the event we seek to complete our partnering transaction with a target that is owned by the related companies, our sponsor, officers or directors, we, or a committee of independent and disinterested directors, will obtain an opinion from an independent investment banking firm or another accounting, valuation or appraisal firm that such partnering transaction is fair to our company from a financial point of view. However, we are not required to obtain such an opinion in any other context.

See “Management —  Conflicts of Interest” for information regarding limitations on our access to investment opportunities sourced by members of our management team, Post and other entities in which members of our management team are involved, including a list of our executive officers and directors and entities for which a conflict of interest may or does exist between such officers and our company.

Status as a Public Company

We believe our structure will make us an attractive partnering transaction partner to target businesses. As an existing public company, we will offer target businesses an alternative to the traditional initial public offering through a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar partnering transaction. In this situation, the owners of the target business would exchange their shares of stock in the target business for shares of our stock or for a combination of shares of our stock and cash, allowing us to tailor the consideration to the specific needs of the sellers. Although there are various costs and obligations associated with being a public company, we believe target businesses will find this method a more certain and

 

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cost-effective method to becoming a public company than the typical initial public offering. In a typical initial public offering, there are additional expenses incurred in marketing, road show and public reporting efforts that may not be present to the same extent in connection with a partnering transaction with us.

Furthermore, once a proposed partnering transaction is completed, the target business will have effectively become public, whereas an initial public offering is always subject to the underwriters’ ability to complete the offering, as well as general market conditions, which could delay or prevent the offering from occurring. Once public, we believe the target business would then have greater access to capital and an additional means of providing management incentives consistent with stockholders’ interests. It can offer further benefits by augmenting a company’s profile among potential new customers and vendors and aid in attracting talented employees.

We are an “emerging growth company,” as defined in the JOBS Act. We will remain an emerging growth company until the earlier of (1) the last day of the fiscal year (a) following the fifth anniversary of the completion of this offering, (b) in which we have total annual gross revenue of at least $1.07 billion, or (c) in which we are deemed to be a large accelerated filer, which means the market value of our common stock that is held by non-affiliates exceeds $700 million as of the end of that fiscal year’s second fiscal quarter, and (2) the date on which we have issued more than $1.00 billion in non-convertible debt securities during the prior three-year period.

Financial Position

With funds available for a partnering transaction initially in the amount of $392,000,000 (which includes $100,000,000 that may be received pursuant to the forward purchase agreement) assuming no redemptions and after payment of $10,500,000 of deferred underwriting fees (or $435,425,000 (which includes the $100,000,000 that may be received pursuant to the forward purchase agreement) assuming no redemptions and after payment of up to $12,075,000 of deferred underwriting fees if the underwriters’ over-allotment option is exercised in full), after estimated offering expenses of $1,500,000 (and prior to any estimated post-IPO working capital expenses of $2,500,000), we offer a target business a variety of options such as creating a liquidity event for its owners, providing capital for the potential growth and expansion of its operations or strengthening its balance sheet by reducing its debt ratio. Because we are able to complete our partnering transaction using our cash, debt or equity securities, or a combination of the foregoing, we have the flexibility to use the most efficient combination that will allow us to tailor the consideration to be paid to the target business to fit its needs and desires. However, we have not taken any steps to secure third-party financing and there can be no assurance it will be available to us.

Effecting our Partnering Transaction

We are not presently engaged in, and we will not engage in, any operations for an indefinite period of time following this offering. We intend to effectuate our partnering transaction using cash from the proceeds of this offering and the sale of the private placement units and forward purchase units, our capital stock, debt or a combination of these as the consideration to be paid in our partnering transaction. We may seek to complete our partnering transaction with a company or business that may be financially unstable or in its early stages of development or growth, which would subject us to the numerous risks inherent in such companies and businesses.

If our partnering transaction is paid for using equity or debt or not all of the funds released from the trust account are used for payment of the consideration in connection with our partnering transaction or used for redemption of our public shares, we may apply the balance of the cash released to us from the trust account for general corporate purposes, including for maintenance or expansion of operations of post-transaction businesses, the payment of principal or interest due on indebtedness incurred in completing our partnering transaction, to fund the purchase of other businesses or for working capital.

 

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We have not selected any specific partnering candidate and we have not, nor has anyone on our behalf, engaged in any substantive discussions directly or indirectly with any partnering candidate with respect to a partnering transaction with us. The members of our management team and Post and other entities in which members of our management team are involved are from time to time made aware of potential business opportunities, one or more of which we may desire to pursue, for a partnering transaction, but we have not selected any partnering transaction target and we have not, nor has anyone on our behalf, engaged in any substantive discussions, directly or indirectly, with any partnering transaction target with respect to a partnering transaction with us. See “— Sourcing of Potential Partnering Transaction Targets,” “— Conflicts of Interest” and “Management — Conflicts of Interest” for additional information regarding limitations on our access to investment opportunities sourced by members of our management team, Post and other entities in which members of our management team are involved.

In addition to the forward purchase agreement, we may seek to raise additional funds through a private offering of debt or equity securities in connection with the completion of our partnering transaction, and we may effectuate our partnering transaction using the proceeds of such offerings or loans rather than using the amounts held in the trust account.

In the case of a partnering transaction funded with assets other than the trust account assets, our tender offer documents or proxy materials disclosing the partnering transaction would disclose the terms of the financing and, only if required by applicable law or we decide to do so for business or other reasons, we would seek stockholder approval of such financing. There are no prohibitions on our ability to raise funds privately or through loans in connection with our partnering transaction. At this time, we are not a party to any arrangement or understanding with any third party with respect to raising any additional funds through the sale of securities or otherwise.

Selection of a Target Business and Structuring of our Partnering Transaction

NYSE listing rules require that our partnering transaction must be with one or more target businesses that have an aggregate fair market value equal to at least 80% of the value of the trust account (excluding any deferred underwriting commissions and taxes payable on interest earned on the trust account) at the time of our signing a definitive agreement in connection with our partnering transaction. The fair market value of the target or targets will be determined by our board of directors based upon one or more standards generally accepted by the financial community, such as discounted cash flow valuation or value of comparable businesses. If our board of directors is not able to independently determine the fair market value of the target business or businesses, we will obtain an opinion from an independent investment banking firm or another independent entity that commonly renders valuation opinions with respect to the satisfaction of such criteria. We do not currently intend to purchase multiple businesses in unrelated industries in conjunction with our partnering transaction, although there is no assurance that will be the case. Subject to this requirement, our management will have virtually unrestricted flexibility in identifying and selecting one or more prospective target businesses, although we will not be permitted to effectuate our partnering transaction solely with another blank check company or a similar company with nominal operations.

In any case, we will only complete a partnering transaction if the post-transaction company owns or acquires 50% or more of the outstanding voting power of the outstanding capital stock of the target or otherwise acquires an interest in the target business sufficient for it not to be required to register as an investment company under the Investment Company Act. If less than 100% of the outstanding equity interests or assets of a target business or businesses are owned or acquired by the post-transaction company, the portion of such business or businesses that is owned or acquired by us is what will be valued for purposes of the 80% of net assets test. There is no basis for investors in this offering to evaluate the possible merits or risks of any target business with which we may ultimately complete our partnering transaction.

To the extent we effect our partnering transaction with a company or business that may be financially unstable or in its early stages of development or growth, we may be affected by numerous risks inherent in

 

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such company or business. Although our management will endeavor to evaluate the risks inherent in a particular target business, we cannot assure you that we will properly ascertain or assess all of the significant risk factors.

In evaluating a prospective target business, we expect to conduct a thorough due diligence review which may encompass, among other things, meetings with incumbent management and employees, document reviews and inspection of facilities, as well as a review of financial, operational, legal and other information that will be made available to us.

The time required to select and evaluate a target business and to structure and complete our partnering transaction, and the costs associated with this process, are not currently ascertainable with any degree of certainty. Any costs incurred with respect to the identification and evaluation of a prospective target business with which our partnering transaction is not ultimately completed will result in our incurring losses and will reduce the funds we can use to complete another partnering transaction.

Lack of Business Diversification

For an indefinite period of time after the completion of our partnering transaction, the prospects for our success may depend entirely on the future performance of a single business.

By completing our partnering transaction with only a single entity our lack of diversification may subject us to numerous economic, competitive and regulatory risks. Further, we would not be able to diversify our operations or benefit from the possible spreading of risks or offsetting of losses, unlike other entities which may have the resources to complete several partnering transactions in different industries or different areas of a single industry. Accordingly, the prospects for our success may be:

 

   

solely dependent upon the performance of a single business, property or asset; or

 

   

dependent upon the development or market acceptance of a single or limited number of products, processes or services.

This lack of diversification may subject us to numerous economic, competitive and regulatory risks, any or all of which may have a substantial adverse impact upon the particular industry in which we may operate subsequent to our partnering transaction.

Potential Management Concerns Post-Partnering Transaction

Although we intend to closely scrutinize the management of a prospective target business when evaluating the desirability of effecting our partnering transaction with that business, our assessment of the target business’s management may not prove to be correct. In addition, the future management may not have the necessary skills, qualifications or abilities to manage a public company. Furthermore, the future role of members of our management team, if any, in the target business cannot presently be stated with any certainty. Although we contemplate that certain members of an acquisition candidate’s management team will remain associated with the acquisition candidate following our partnering transaction, it is possible that members of the management of an acquisition candidate will not wish to remain in place and it is highly unlikely that any of them will devote their full efforts to our affairs subsequent to our partnering transaction. Moreover, we cannot assure you that members of our management team will have significant experience or knowledge relating to the operations of the particular target business.

We cannot assure you that any of our key personnel will remain in senior management or advisory positions with the post-partnering transaction company. The determination as to whether any of our key personnel will remain with the combined company will be made at the time of our partnering transaction.

 

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Following our partnering transaction, we may seek to recruit additional managers to supplement the incumbent management team of the target business. We cannot assure you that we will have the ability to recruit additional managers, or that additional managers will have the requisite skills, knowledge or experience necessary to enhance the incumbent management team.

Stockholders May Not Have the Ability to Approve our Partnering Transaction

We may conduct redemptions without a stockholder vote pursuant to the tender offer rules of the SEC. However, we will seek stockholder approval if it is required by Delaware law or stock exchange rule, or we may decide to seek stockholder approval for business or other reasons. Presented in the table below is a graphic explanation of the types of partnering transactions we may consider and whether stockholder approval is currently required under Delaware law for each such transaction.

 

Type of Transaction

  

Whether Stockholder Approval is Required

Purchase of assets    No
Purchase of stock of target not involving a merger with the company    No
Merger of target into a subsidiary of the company    No
Merger of the company with a target    Yes

Under NYSE’s listing rules, stockholder approval would be required for our partnering transaction if, for example:

 

   

we issue (other than in a public offering for cash) shares of common stock that will either (a) be equal to or in excess of 20% of the number of shares of common stock (other than in a public offering) then outstanding or (b) have voting power equal to or in excess of 20% of the voting power then outstanding;

 

   

any of our directors, officers or substantial security holders (as defined by the NYSE 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 shares of common stock could result in an increase in issued and outstanding shares of common stock 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 will result in our undergoing a change of control.

The decision as to whether we will seek stockholder approval of a proposed partnering transaction in those instances in which stockholder approval is not required by Delaware law or stock exchange rule will be made by us, solely in our discretion, and will be based on business and other reasons, which include a variety of factors, including, but not limited to:

 

   

the timing of the transaction, including in the event we determine stockholder approval would require additional time and there is either not enough time to seek stockholder 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 stockholder vote;

 

   

the risk that the stockholders would fail to approve the proposed partnering transaction;

 

   

other time and budget constraints of the company; and

 

   

additional legal complexities of a proposed partnering transaction that would be time-consuming and burdensome to present to stockholders.

 

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Permitted purchases and other transactions with respect to our securities

In the event we seek stockholder approval of our partnering transaction and we do not conduct redemptions in connection with our partnering transaction pursuant to the tender offer rules our sponsor, directors, officers, or advisors or any of the related companies and their directors, officers or advisors may purchase public shares or warrants in privately negotiated transactions or in the open market either prior to or following the completion of our partnering transaction. There is no limit on the number of securities such persons may purchase. Additionally, at any time at or prior to our partnering transaction, subject to applicable securities laws (including with respect to material nonpublic information), our sponsor, directors, officers, or advisors or any of the related companies and their directors, officers or advisors may enter into transactions with investors and others to provide them with incentives to acquire public shares, vote their public shares in favor of our partnering transaction or not redeem their public shares. However, they have no current commitments, plans or intentions to engage in such purchases or other transactions and have not formulated any terms or conditions for any such purchases or other transactions. None of the funds held in the trust account will be used to purchase public shares or warrants in such transactions. Such persons will be subject to restrictions in making any such purchases when they are in possession of any material non-public information or if such purchases are prohibited by Regulation M under the Exchange Act. Such a purchase may include a contractual acknowledgement that such stockholder, although still the record holder of our shares, is no longer the beneficial owner thereof and therefore agrees not to exercise its redemption rights. We will adopt an insider trading policy which will require insiders to refrain from purchasing securities during certain blackout periods and when they are in possession of any material non-public information. We cannot currently determine whether our insiders will make such purchases pursuant to a Rule 10b5-1 plan, as it will be dependent upon several factors, including, but not limited to, the timing and size of such purchases. Depending on such circumstances, our insiders may either make such purchases pursuant to a Rule 10b5-1 plan or determine that such a plan is not necessary.

In the event that our sponsor, directors, officers, or advisors or any of the related companies and their directors, officers or advisors purchase public shares in privately negotiated transactions from public stockholders who have already elected to exercise their redemption rights or submitted a proxy to vote against our partnering transaction, such selling stockholders would be required to revoke their prior elections to redeem their shares and any proxy to vote against our partnering transaction. 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.

The purpose of any such transaction could be to (1) vote such shares in favor of the partnering transaction and thereby increase the likelihood of obtaining stockholder approval of the partnering transaction, (2) reduce the number of public warrants outstanding or to vote such warrants on any matters submitted to the warrant holders for approval in connection with our partnering transaction or (3) satisfy a closing condition in an agreement with a target that requires us to have a minimum net worth or a certain amount of cash at the consummation of our partnering transaction, where it appears that such requirement would otherwise not be met. Any such transactions may result in the completion of our partnering transaction that may not otherwise have been possible.

In addition, if such purchases are made, the public “float” of our shares of Series A common stock or warrants may be reduced and the number of beneficial holders of our securities may be reduced, which may make it difficult to maintain or obtain the quotation, listing or trading of our securities on a national securities exchange.

Our sponsor, officers, directors, and advisors anticipate that they may identify the stockholders with whom our sponsor, officers, directors, or advisors or any of the related companies or their officers, directors or

 

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advisors may pursue privately negotiated transactions by either the stockholders contacting us directly or by our receipt of redemption requests submitted by stockholders (in the case of public shares) following our mailing of proxy materials in connection with our partnering transaction. To the extent that our sponsor, officers, directors, or advisors or any of the related companies or their officers, directors or advisors enter into a private transaction, they would identify and contact only potential selling or redeeming stockholders who have expressed their election to redeem their shares for a pro rata share of the trust account or vote against our partnering transaction. Such persons would select the stockholders from whom to acquire shares based on the number of shares available, the negotiated price per share and such other factors as any such person may deem relevant at the time of purchase. The price per share paid in any such transaction may be different than the amount per share a public stockholder would receive if it elected to redeem its shares in connection with our partnering transaction. Our sponsor, officers, directors, or advisors or any of the related companies or their officers, directors or advisors will be restricted from purchasing shares if such purchases do not comply with Regulation M under the Exchange Act and the other federal securities laws.

Any purchases by any person who is an affiliated purchaser under Rule 10b-18 under the Exchange Act will be restricted unless such purchases are made in compliance with Rule 10b-18, which is a safe harbor from liability for manipulation under Section 9(a)(2) and Rule 10b-5 of the Exchange Act. Rule 10b-18 has certain technical requirements that must be complied with in order for the safe harbor to be available to the purchaser. Our sponsor, officers, and directors and any of the related companies and their officers and directors will be restricted from making purchases of common stock if such purchases would violate Section 9(a)(2) or Rule 10b-5 of the Exchange Act.

Redemption Rights for Public Stockholders upon Completion of our Partnering Transaction

We will provide our public stockholders with the opportunity to redeem all or a portion of their shares of common stock upon the completion of our partnering transaction at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the trust account, calculated as of two business days prior to the consummation of the partnering transaction, including interest (which interest shall be net of taxes payable), divided by the number of then outstanding public shares, subject to the limitations described herein. At completion of the partnering transaction, we will be required to purchase any public shares properly delivered for redemption and not withdrawn. The amount in the trust account is initially anticipated to be $10.00 per public share. The redemption rights will include the requirement that a beneficial holder must identify itself in order to validly redeem its shares. There will be no redemption rights upon the completion of our partnering transaction with respect to our warrants. The per-share amount we will distribute to investors who properly redeem their shares will not be reduced by the deferred underwriting commissions we will pay to the underwriters. Our sponsor, executive officers and directors will enter into a letter agreement with us, pursuant to which they will agree to waive their redemption rights with respect to our common stock held by them in connection with the completion of our partnering transaction.

Manner of Conducting Redemptions

We will provide our public stockholders with the opportunity to redeem all or a portion of their shares of Series A common stock upon the completion of our partnering transaction either: (1) in connection with a stockholder meeting called to approve the partnering transaction; or (2) by means of a tender offer. At completion of the partnering transaction, we will be required to purchase any public shares properly delivered for redemption and not withdrawn. Except as required by Delaware law or stock exchange rule, the decision as to whether we will seek stockholder approval of a proposed partnering transaction or conduct a tender offer will be made by us, solely in our discretion, and will be based on a variety of factors such as the timing of the transaction. Asset acquisitions and stock purchases would not typically require stockholder approval while direct mergers with our company where we do not survive and any transactions where we issue more than 20% of our outstanding common stock or seek to amend our amended and restated certificate of incorporation would typically require stockholder approval. If we structure a partnering transaction with a target company in

 

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a manner that requires stockholder approval, we will not have discretion as to whether to seek a stockholder vote to approve the proposed partnering transaction. We intend to conduct redemptions without a stockholder vote pursuant to the tender offer rules of the SEC unless stockholder approval is required by applicable law or stock exchange rule or we choose to seek stockholder approval for business or other reasons.

If a stockholder vote is not required and we do not decide to hold a stockholder vote for business or other reasons, we will, pursuant to our amended and restated certificate of incorporation:

 

   

conduct the redemptions pursuant to Rule 13e-4 and Regulation 14E of the Exchange Act, which regulate issuer tender offers; and

 

   

file tender offer documents with the SEC prior to completing our partnering transaction which contain substantially the same financial and other information about the partnering transaction and the redemption rights as is required under Regulation 14A of the Exchange Act, which regulates the solicitation of proxies.

Upon the public announcement of our partnering transaction, we and our sponsor will terminate any plan established in accordance with Rule 10b5-1 to purchase shares of our Series A common stock in the open market if we elect to redeem our public shares through a tender offer, to comply with Rule 14e-5 under the Exchange Act.

In the event we conduct redemptions pursuant to the tender offer rules, our offer to redeem will remain open for at least 20 business days, in accordance with Rule 14e-1(a) under the Exchange Act, and we will not be permitted to complete our partnering transaction until the expiration of the tender offer period. In addition, the tender offer will be conditioned on public stockholders not tendering more than a specified number of public shares, which 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 following such redemptions or any greater net tangible asset or cash requirement which may be contained in the agreement relating to our partnering transaction. If public stockholders tender more shares than we have offered to purchase, we will withdraw the tender offer and not complete such partnering transaction, and we instead may search for an alternate partnering transaction (including, potentially, with the same target).

If, however, stockholder approval of the transaction is required by applicable law or stock exchange rule, or we decide to obtain stockholder approval for business or other reasons, we will, pursuant to our amended and restated certificate of incorporation:

 

   

conduct the redemptions in conjunction with a proxy solicitation pursuant to Regulation 14A of the Exchange Act, which regulates the solicitation of proxies, and not pursuant to the tender offer rules; and

 

   

file proxy materials with the SEC.

We expect that a final proxy statement would be mailed to public stockholders at least 10 days prior to the stockholder vote. However, we expect that a draft proxy statement would be made available to such stockholders well in advance of such time, providing additional notice of redemption if we conduct redemptions in conjunction with a proxy solicitation. Although we are not required to do so, we currently intend to comply with the substantive and procedural requirements of Regulation 14A in connection with any stockholder vote even if we are not able to maintain our NYSE listing or Exchange Act registration.

In the event that we seek stockholder approval of our partnering transaction, we will distribute proxy materials and, in connection therewith, provide our public stockholders with the redemption rights described above upon the consummation of the partnering transaction.

If we seek stockholder approval of our partnering transaction, we will complete our partnering transaction only if a majority of the outstanding shares of our common stock voted are voted in favor of the partnering transaction, subject to any other vote required by applicable law. A quorum for such meeting will consist of the

 

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holders present in person or by proxy of shares of our outstanding capital stock representing a majority of all outstanding shares of capital stock of the company entitled to vote at such meeting. Our sponsor, executive officers and directors will count towards this quorum and will agree to vote any shares held by them in favor of our partnering transaction. We expect that at the time of any stockholder vote relating to our partnering transaction, our sponsor and its permitted transferees will own at least 20% of our outstanding shares of common stock (excluding the private placement shares underlying the private placement units) entitled to vote thereon. These quorum and voting thresholds and agreements may make it more likely that we will consummate our partnering transaction. Each public stockholder may elect to redeem its public shares without voting and, if it does vote, irrespective of whether it votes for or against the proposed transaction. In addition, our sponsor, executive officers and directors will enter into a letter agreement with us, pursuant to which they will agree to waive their redemption rights with respect to our common stock held by them in connection with the completion of a partnering transaction.

Our amended and restated certificate of incorporation will provide that in no event will we redeem our public shares in an amount that would cause our net tangible assets to be less than $5,000,001 following such redemptions. Redemptions of our public shares may also be subject to a higher net tangible asset test or cash requirement pursuant to an agreement relating to our partnering transaction. For example, the proposed partnering transaction may require: (1) cash consideration to be paid to the target or its owners; (2) cash to be transferred to the target for working capital or other general corporate purposes; or (3) the retention of cash to satisfy other conditions in accordance with the terms of the proposed partnering transaction. In the event the aggregate cash consideration we would be required to pay for all shares of Series A common stock that are validly submitted for redemption plus any amount required to satisfy cash conditions pursuant to the terms of the proposed partnering transaction exceed the aggregate amount of cash available to us, we will not complete the partnering transaction or redeem any shares, and all shares of Series A common stock submitted for redemption will be returned to the holders thereof, and we instead may search for an alternate partnering transaction (including, potentially, with the same target).

Limitation on Redemption upon Completion of our Partnering Transaction if we Seek Stockholder Approval

Notwithstanding the foregoing redemption rights, if we seek stockholder approval of our partnering transaction and we do not conduct redemptions in connection with our partnering transaction pursuant to the tender offer rules, our amended and restated certificate of incorporation will provide that a public stockholder, together with any affiliate of such stockholder or any other person with whom such stockholder is acting in concert or as a “group” (as defined under Section 13 of the Exchange Act), will be restricted from redeeming its shares with respect to Excess Shares, without our prior consent. We believe this restriction will discourage stockholders from accumulating large blocks of shares, and subsequent attempts by such holders to use their ability to exercise their redemption rights against a proposed partnering transaction as a means to force us or our sponsor to purchase their shares at a significant premium to the then-current market price or on other undesirable terms. Absent this provision, a public stockholder holding more than an aggregate of 15% of the shares sold in this offering could threaten to exercise its redemption rights if such holder’s shares are not purchased by us or our sponsor at a premium to the then-current market price or on other undesirable terms. By limiting our stockholders’ ability to redeem to no more than 15% of the shares sold in this offering, we believe we will limit the ability of a small group of stockholders to unreasonably attempt to block our ability to complete our partnering transaction, particularly in connection with a partnering transaction with a target that requires as a closing condition that we have a minimum net worth or a certain amount of cash. However, we would not be restricting our stockholders’ ability to vote all of their shares (including Excess Shares) for or against our partnering transaction.

 

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Tendering Stock Certificates in Connection with a Tender Offer or Redemption Rights

We may require our public stockholders seeking to exercise their redemption rights, whether they are record holders or hold their shares in “street name,” to either tender their certificates to our transfer agent prior to the date set forth in the tender offer documents or proxy materials mailed to such holders, or up to two business days prior to the scheduled vote on the proposal to approve the partnering transaction 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, rather than simply voting against the partnering transaction 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 partnering transaction will indicate whether we are requiring public stockholders to satisfy such delivery requirements, which will include the requirement that a beneficial holder must identify itself in order to validly redeem its shares. Accordingly, a public stockholder 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 scheduled vote on the partnering transaction if we distribute proxy materials, as applicable, to tender its shares if it wishes to seek to exercise its redemption rights. Pursuant to the tender offer rules, the tender offer period will be not less than 20 business days and, in the case of a stockholder vote, a final proxy statement would be mailed to public stockholders at least 10 days prior to the stockholder vote. However, we expect that a draft proxy statement would be made available to such stockholders well in advance of such time, providing additional notice of redemption if we conduct redemptions in conjunction with a proxy solicitation. Given the relatively short exercise period, it is advisable for stockholders to use electronic delivery of their public shares.

There is a nominal cost associated with the above-referenced tendering process and the act of certificating the shares or delivering them through The Depository Trust Company’s DWAC (Deposit/Withdrawal At Custodian) System. The transfer agent will typically charge the tendering broker a fee of approximately $80 and it would be up to the broker whether or not to pass this cost on to the redeeming holder. However, this fee would be incurred regardless of whether or not we require holders seeking to exercise redemption rights to tender their shares. The need to deliver shares is a requirement of exercising redemption rights regardless of the timing of when such delivery must be effectuated.

The foregoing is different from the procedures used by some blank check companies. In order to perfect redemption rights in connection with their partnering transactions, some blank check companies would distribute proxy materials for the stockholders’ vote on a partnering transaction, and a holder could simply vote against a proposed partnering transaction and check a box on the proxy card indicating such holder was seeking to exercise his or her redemption rights. After the partnering transaction was approved, the company would contact such stockholder to arrange for him or her to deliver his or her certificate to verify ownership. As a result, the stockholder then had an “option window” after the completion of the partnering transaction during which he or she could monitor the price of the company’s stock in the market. If the price rose above the redemption price, he or she could sell his or her shares in the open market before actually delivering his or her shares to the company for cancellation. As a result, the redemption rights, to which stockholders were aware they needed to commit before the stockholder meeting, would become “option” rights surviving past the completion of the partnering transaction until the redeeming holder delivered its certificate. The requirement for physical or electronic delivery prior to the meeting ensures that a redeeming holder’s election to redeem is irrevocable once the partnering transaction is approved.

Any request to redeem such shares, once made, may be withdrawn at any time up to the date set forth in the tender offer materials or two business days prior to the scheduled date of the stockholder meeting set forth in our proxy materials, as applicable (unless we elect to allow additional withdrawal rights). Furthermore, if a holder of a public share delivered its certificate in connection with an election of redemption rights and subsequently decides prior to the applicable date not to elect to exercise such rights, such holder may simply request that the transfer agent return the certificate (physically or electronically). It is anticipated that the funds to be distributed to holders of our public shares electing to redeem their shares will be distributed promptly after the completion of our partnering transaction.

 

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If our partnering transaction is not approved or completed for any reason, then our public stockholders who elected to exercise their redemption rights would not be entitled to redeem their shares for the applicable pro rata share of the trust account. In such case, we will promptly return any certificates delivered by public holders who elected to redeem their shares.

If our proposed partnering transaction is not completed, we may continue to try to complete a partnering transaction until 24 months from the closing of this offering (or 27 months following an agreement in principle event) or during any Extension Period.

Redemption of Public Shares and Liquidation if no Partnering Transaction

Our amended and restated certificate of incorporation will provide that we will have only 24 months from the closing of this offering (or 27 months following an agreement in principle event) to complete our partnering transaction. If we have not completed our partnering transaction within such period or during any Extension Period, we will: (1) cease all operations except for the purpose of winding up; (2) as promptly as reasonably possible but not more than 10 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 (which interest shall be net of taxes payable, and less up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding public shares, which redemption will completely extinguish public stockholders’ rights as stockholders (including the right to receive further liquidating distributions, if any); and (3) as promptly as reasonably possible following such redemption, subject to the approval of our remaining stockholders and our board of directors, dissolve and liquidate, subject in each case to our obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law. There will be no redemption rights or liquidating distributions with respect to our warrants, which will expire worthless if we fail to complete our partnering transaction within the 24-month (or 27-month, as applicable) time period.

Our sponsor, executive officers and directors will enter into a letter agreement with us, pursuant to which they will waive their rights to liquidating distributions from the trust account with respect to any founder shares held by them if we fail to complete our partnering transaction within 24 months from the closing of this offering (or 27 months following an agreement in principle event) or during any Extension Period (although our sponsor, officers and directors will be entitled to liquidating distributions from the trust account with respect to any public shares they hold if we fail to complete our partnering transaction within the prescribed time frame).

Our sponsor, executive officers and directors will agree, pursuant to a letter agreement with us, that they will not propose any amendment to our amended and restated certificate of incorporation (A) to modify the substance or timing of our obligation to allow redemptions in connection with our partnering transaction or to redeem 100% of our public shares if we do not complete our partnering transaction within 24 months from the closing of this offering (or 27 months following an agreement in principle event) or (B) with respect to any other provision relating to stockholders’ rights or pre-partnering transaction activity, unless we provide our public stockholders with the opportunity to redeem their shares of Series A common stock upon approval of any such amendment at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the trust account, including interest (which interest shall be net of taxes payable), divided by the number of then outstanding public shares. However, we may not redeem our public shares in an amount that would cause our net tangible assets to be less than $5,000,001 following such redemptions.

We expect that all costs and expenses associated with implementing our plan of dissolution, as well as payments to any creditors, will be funded from amounts remaining out of the estimated $2,500,000 of proceeds held outside the trust account, although we cannot assure you that there will be sufficient funds for such purpose. However, if those funds are not sufficient to cover the costs and expenses associated with implementing our plan of dissolution, to the extent that there is any interest accrued in the trust account not required to pay taxes, we may request the trustee to release to us an additional amount of up to $100,000 of such accrued interest to pay those costs and expenses.

 

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If we were to expend all of the net proceeds of this offering and the sale of the private placement units, other than the proceeds deposited in the trust account, and without taking into account interest, if any, earned on the trust account and any tax payments or expenses for the dissolution of the trust, the per-share redemption amount received by stockholders upon our dissolution would be $10.00. The proceeds deposited in the trust account could, however, become subject to the claims of our creditors which would have higher priority than the claims of our public stockholders. We cannot assure you that the actual per-share redemption amount received by stockholders will not be substantially less than $10.00. See “Risk Factors — Risks Relating to Our Search for, and Consummation of or Inability to Consummate, a Partnering Transaction — If third parties bring claims against us, the proceeds held in the trust account could be reduced and the per-share redemption amount received by stockholders may be less than $10.00 per share” and other risk factors described above. Under Section 281(b) of the DGCL, our plan of dissolution must provide for all claims against us to be paid in full or make provision for payments to be made in full, as applicable, if there are sufficient assets. These claims must be paid or provided for before we make any distribution of our remaining assets to our stockholders. While we intend to pay such amounts, if any, we cannot assure you that we will have funds sufficient to pay or provide for all creditors’ claims.

Although we will seek to have all vendors, service providers (other than our independent registered public accounting firm), prospective target businesses and other entities with which we do business execute agreements with us waiving any right, title, interest or claim of any kind in or to any monies held in the trust account for the benefit of our public stockholders, there is no guarantee that they will execute such agreements or even if they execute such agreements that they would be prevented from bringing claims against the trust account including but not limited to fraudulent inducement, breach of fiduciary responsibility or other similar claims, as well as claims challenging the enforceability of the waiver, in each case in order to gain an advantage with respect to a claim against our assets, including the funds held in the trust account. If any third party refuses to execute an agreement waiving such claims to the monies held in the trust account, our management team will perform an analysis of the alternatives available to it and will only enter into an agreement with a third party that has not executed a waiver if management believes that such third party’s engagement would be significantly more beneficial to us than any alternative.

Examples of possible instances where we may engage a third party that refuses to execute a waiver include the engagement of a third party consultant whose particular expertise or skills are believed by management to be significantly superior to those of other consultants that would agree to execute a waiver or in cases where we are unable to find a service provider willing to execute a waiver. In addition, there is no guarantee that such entities will agree to waive any claims they may have in the future as a result of, or arising out of, any negotiations, contracts or agreements with us and will not seek recourse against the trust account for any reason. In order to protect the amounts held in the trust account, our sponsor will agree that it will be liable to us if and to the extent any claims by a third party (other than our independent registered public accounting firm) for services rendered or products sold to us, or a prospective target business with which we have discussed entering into a transaction agreement, reduce the amount of funds in the trust account to below the lesser of: (1) $10.00 per public share; and (2) such lesser amount per public share held in the trust account as of the date of the liquidation of the trust account due to reductions in the value of the trust assets, in each case net of the amount of interest which may be withdrawn to pay taxes, except as to any claims by a third party who executed a waiver of any and all rights to seek access to the trust account and except as to any claims under our indemnity of the underwriters of this offering against certain liabilities, including liabilities under the Securities Act. Moreover, in the event that an executed waiver is deemed to be unenforceable against a third party, our sponsor will not be responsible to the extent of any liability for such third-party claims. We have not independently verified whether our sponsor, which is a newly formed entity, has sufficient funds to satisfy its indemnity obligations and believe that our sponsor’s only assets are securities of our company and, therefore, our sponsor may not be able to satisfy those obligations. We have not asked our sponsor to reserve for such obligations. Therefore, we cannot assure you that our sponsor would be able to satisfy those obligations. As a result, if any such claims were successfully made against the trust account, the funds available for our partnering transaction and redemptions could be reduced to less than $10.00 per public share. In such event,

 

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we may not be able to complete our partnering transaction, and you would receive such lesser amount per share in connection with any redemption of your public shares. None of our officers will indemnify us for claims by third parties including, without limitation, claims by vendors and prospective target businesses. We believe the likelihood of our sponsor having to indemnify the trust account is limited because we will endeavor to have all vendors and prospective target businesses as well as other entities execute agreements with us waiving any right, title, interest or claim of any kind in or to monies held in the trust account.

In the event that the proceeds in the trust account are reduced below the lesser of: (1) $10.00 per public share; and (2) such lesser amount per public share held in the trust account as of the date of the liquidation of the trust account, due to reductions in the value of the trust assets, in each case net of the amount of interest which may be withdrawn to pay taxes, and our sponsor asserts that it is unable to satisfy its indemnification obligations or that it has no indemnification obligations related to a particular claim, our independent directors would determine whether to take legal action against our sponsor to enforce its indemnification obligations. While we currently expect that our independent directors would take legal action on our behalf against our sponsor to enforce its indemnification obligations to us, it is possible that our independent directors in exercising their business judgment may choose not to do so in certain instances. For example, the cost of such legal action may be deemed by the independent directors to be too high relative to the amount recoverable or the independent directors may determine that a favorable outcome is not likely. Accordingly, we cannot assure you that due to claims of creditors the actual value of the per-share redemption price will not be substantially less than $10.00 per public share. See “Risk Factors — Risks Relating to Our Search for, and Consummation of or Inability to Consummate, a Partnering Transaction — If third parties bring claims against us, the proceeds held in the trust account could be reduced and the per-share redemption amount received by stockholders may be less than $10.00 per share” and other risk factors described above.

We will seek to reduce the possibility that our sponsor will have to indemnify the trust account due to claims of creditors by endeavoring to have all vendors, service providers (other than our independent registered public accounting firm), prospective target businesses and other entities with which we do business execute agreements with us waiving any right, title, interest or claim of any kind in or to monies held in the trust account. Our sponsor will also not be liable as to any claims under our indemnity of the underwriters of this offering against certain liabilities, including liabilities under the Securities Act. We will have access to up to an estimated $1,500,000 from the proceeds of this offering and the sale of the private placement units with which to pay any such potential claims (including costs and expenses incurred in connection with any liquidation, currently estimated to be no more than approximately $100,000). In the event that we liquidate and it is subsequently determined that the reserve for claims and liabilities is insufficient, stockholders who received funds from our trust account could be liable for claims made by creditors. In the event that our offering expenses exceed our estimate of $1,500,000, we may fund such excess with funds 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 our estimate of $1,500,000, the amount of funds we intend to be held outside the trust account would increase by a corresponding amount.

Under the DGCL, stockholders may be held liable for claims by third parties against a corporation to the extent of distributions received by them in a dissolution. The pro rata portion of our trust account distributed to our public stockholders upon the redemption of our public shares in the event we do not complete our partnering transaction within the required time period may be considered a liquidating distribution under Delaware law. If the corporation complies with certain procedures set forth in Section 280 of the DGCL intended to ensure that it makes reasonable provision for all claims against it, including a 60-day notice period during which any third-party claims can be brought against the corporation, a 90-day period during which the corporation may reject any claims brought, and an additional 150-day waiting period before any liquidating distributions are made to stockholders, any liability of stockholders with respect to a liquidating distribution is limited to the lesser of such stockholder’s pro rata share of the claim or the amount distributed to the stockholder, and any liability of the stockholder would be barred after the third anniversary of the dissolution.

 

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Furthermore, if the pro rata portion of our trust account distributed to our public stockholders upon the redemption of our public shares in the event we do not complete our partnering transaction within the required time period is not considered a liquidating distribution under Delaware law and such redemption distribution is deemed to be unlawful, then pursuant to Section 174 of the DGCL, the statute of limitations for claims of creditors could then be six years after the unlawful redemption distribution, instead of three years, as in the case of a liquidating distribution. If we have not completed our partnering transaction within 24 months from the closing of this offering (or 27 months following an agreement in principle event) or during any Extension Period, we will: (1) cease all operations except for the purpose of winding up; (2) as promptly as reasonably possible but not more than 10 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 (which interest shall be net of taxes payable, and less up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding public shares, which redemption will completely extinguish public stockholders’ rights as stockholders (including the right to receive further liquidating distributions, if any); and (3) as promptly as reasonably possible following such redemption, subject to the approval of our remaining stockholders and our board of directors, dissolve and liquidate, subject in each case to our obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law. Accordingly, it is our intention to redeem our public shares as soon as reasonably possible following the end of our acquisition period and, therefore, we do not intend to comply with those procedures. As such, our stockholders could potentially be liable for any claims to the extent of distributions received by them (but no more) and any liability of our stockholders may extend well beyond the third anniversary of such date.

Because we will not be complying with Section 280, Section 281(b) of the DGCL requires us to adopt a plan, based on facts known to us at such time, that will provide for our payment of all existing and pending claims or claims that may be potentially brought against us within the subsequent ten years. However, because we are a blank check company, rather than an operating company, and our operations will be limited to searching for prospective target businesses to acquire, the only likely claims to arise would be from our vendors (such as lawyers, investment bankers, etc.) or prospective target businesses. As described above, pursuant to the obligation contained in our underwriting agreement, we will seek to have all vendors, service providers (other than our independent registered public accounting firm), prospective target businesses and other entities with which we do business execute agreements with us waiving any right, title, interest or claim of any kind in or to any monies held in the trust account.

As a result of this obligation, the claims that could be made against us are significantly limited and the likelihood that any claim that would result in any liability extending to the trust account is remote. Further, our sponsor may be liable only to the extent necessary to ensure that the amounts in the trust account are not reduced below the lesser of: (1) $10.00 per public share; and (2) such lesser amount per public share held in the trust account as of the date of the liquidation of the trust account due to reductions in the value of the trust assets, in each case net of the amount of interest which may be withdrawn to pay taxes, except as to any claims by a third party who executed a waiver of any and all rights to seek access to the trust account and except as to any claims under our indemnity of the underwriters of this offering against certain liabilities, including liabilities under the Securities Act. In the event that an executed waiver is deemed to be unenforceable against a third party, our sponsor will not be responsible to the extent of any liability for such third-party claims.

If we file a bankruptcy petition or an involuntary bankruptcy petition is filed against us that is not dismissed, the proceeds held in the trust account could be subject to applicable bankruptcy law, and may be included in our bankruptcy estate and subject to the claims of third parties with priority over the claims of our stockholders. To the extent any bankruptcy claims deplete the trust account, we cannot assure you we will be able to return $10.00 per share to our public stockholders. Additionally, if we file a bankruptcy petition or an involuntary bankruptcy petition is filed against us that is not dismissed, any distributions received by stockholders could be viewed under applicable debtor/creditor and/or bankruptcy laws as either a “preferential transfer” or a “fraudulent conveyance.” As a result, a bankruptcy court could seek to recover some or all amounts received by our stockholders. Furthermore, our board of directors may be viewed as having breached

 

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its fiduciary duty to our creditors and/or may have acted in bad faith, and thereby exposing itself and our company to claims of punitive damages, by paying public stockholders from the trust account prior to addressing the claims of creditors. We cannot assure you that claims will not be brought against us for these reasons. See “Risk Factors — If, after we distribute the proceeds in the trust account to our public stockholders, we file a bankruptcy petition or an involuntary bankruptcy petition is filed against us that is not dismissed, a bankruptcy court may seek to recover such proceeds, and the members of our board of directors may be viewed as having breached their fiduciary duties to our creditors, thereby exposing the members of our board of directors and us to claims of punitive damages.”

A public stockholder will be entitled to receive funds from the trust account only upon the earliest to occur of: (1) the completion of our partnering transaction and then, only in connection with those public shares that such stockholder has properly elected to redeem, subject to the limitations described in this prospectus; (2) the redemption of any public shares properly submitted in connection with a stockholder vote to amend our amended and restated certificate of incorporation (A) to modify the substance or timing of our obligation to allow redemptions in connection with our partnering transaction or to redeem 100% of our public shares if we do not complete our partnering transaction within 24 months from the closing of this offering (or 27 months following an agreement in principle event) or (B) with respect to any other provision relating to stockholders’ rights or pre-partnering transaction activity; and (3) the redemption of all of our public shares if we have not completed our partnering transaction within 24 months from the closing of this offering (or 27 months following an agreement in principle event), subject to applicable law. In no other circumstances will a public stockholder have any right or interest of any kind to or in the trust account. In the event we seek stockholder approval in connection with our partnering transaction, a stockholder’s voting in connection with our partnering transaction alone will not result in a stockholder’s redeeming its shares to us for an applicable pro rata share of the trust account. Such stockholder must have also exercised its redemption rights described above. Holders of warrants will not have any rights to proceeds held in the trust account with respect to the warrants.

Amended and Restated Certificate of Incorporation

Our amended and restated certificate of incorporation will contain certain requirements and restrictions relating to this offering that will apply to us until the completion of our partnering transaction. If we seek to amend any provisions of our amended and restated certificate of incorporation (A) to modify the substance or timing of our obligation to allow redemptions in connection with our partnering transaction or to redeem 100% of our public shares if we do not complete our partnering transaction within 24 months from the closing of this offering (or 27 months following an agreement in principle event) or (B) with respect to any other provision relating to stockholders’ rights or pre-partnering transaction activity, we will provide public stockholders with the opportunity to redeem their public shares in connection with any such vote. Our sponsor, executive officers and directors will agree to waive any redemption rights with respect to our common stock held by them in connection with the completion of our partnering transaction. Specifically, our amended and restated certificate of incorporation will provide, among other things, that:

 

   

prior to the completion of our partnering transaction, we shall either: (1) seek stockholder approval of our partnering transaction at a meeting called for such purpose, in connection with which stockholders may seek to redeem their shares, without voting, and if they do vote, irrespective of whether they vote for or against the proposed partnering transaction, for their pro rata share of the aggregate amount then on deposit in the trust account, calculated as of two business days prior to the completion of our partnering transaction, including interest (which interest shall be net of taxes payable); or (2) provide our public stockholders with the opportunity to tender their shares to us by means of a tender offer (and thereby avoid the need for a stockholder vote) for an amount equal to their pro rata share of the aggregate amount then on deposit in the trust account, calculated as of two business days prior to the completion of our partnering transaction, including interest (which interest shall be net of taxes payable), in each case subject to the limitations described herein;

 

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we will consummate our partnering transaction only if we have net tangible assets of at least $5,000,001 upon such consummation and, solely if we seek stockholder approval, a majority of the voting power of all outstanding shares of capital stock voted are voted in favor of the partnering transaction at a duly held stockholders meeting, subject to any other vote required by applicable law;

 

   

if we have not completed our partnering transaction within 24 months (or 27 months following an agreement in principle event) from the closing of this offering, we will: (1) cease all operations except for the purpose of winding up; (2) as promptly as reasonably possible but not more than 10 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 (which interest shall be net of taxes payable, and less up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding public shares, which redemption will completely extinguish public stockholders’ rights as stockholders (including the right to receive further liquidating distributions, if any); and (3) as promptly as reasonably possible following such redemption, subject to the approval of our remaining stockholders and our board of directors, dissolve and liquidate, subject in each case to our obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law; and

 

   

prior to our partnering transaction, we may not issue additional shares of capital stock that would entitle the holders thereof to (1) receive funds from the trust account or (2) vote pursuant to our amended and restated certificate of incorporation on any partnering transaction.

These provisions cannot be amended without the approval of holders of 66 2/3% of the total voting power of our outstanding capital stock.

Additionally, our amended and restated certificate of incorporation will provide that, prior to our partnering transaction, only holders of our Series F common stock will have the right to vote on the election of directors. These provisions of our amended and restated certificate of incorporation may only be amended if approved by holders of more than 50% of the total voting power of the outstanding shares of our common stock entitled to vote thereon as well as more than 50% of the outstanding Series F common stock. In addition, prior to our partnering transaction and so long as any shares of Series F common stock remain outstanding, the rights, powers and preferences provided by our amended and restated certificate of incorporation to the Series B common stock may be amended only if approved by the holders of a majority of the outstanding Series F common stock.

See “Description of Securities” for additional information.

 

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Comparison of Redemption or Purchase Prices in Connection with our Partnering Transaction and if we Fail to Complete our Partnering Transaction

The following table compares the redemptions and other permitted purchases of public shares that may take place in connection with the completion of our partnering transaction and if we have not completed our partnering transaction within 24 months from the closing of this offering (or 27 months following an agreement in principle event) or during any Extension Period.

 

   

Redemptions in
Connection with our
Partnering Transaction

 

Other Permitted
Purchases of Public
Shares by our Sponsor,
Insiders or Related Companies

 

Redemptions if we Fail to
Complete a Partnering
Transaction

Calculation of redemption price or other permitted purchases

  Redemptions at the time of our partnering transaction may be made pursuant to a tender offer or in connection with a stockholder vote. The redemption price will be the same whether we conduct redemptions pursuant to a tender offer or in connection with a stockholder vote. In either case, our public stockholders may redeem their public shares for cash
equal to the aggregate amount then on deposit in the trust account, calculated as of two business days prior to the consummation of the partnering transaction (which is initially anticipated to be $10.00 per public share), including interest (which interest shall be net of taxes payable), divided by the number of then outstanding public shares, subject to the limitation that no redemptions will take place if all of the redemptions would cause our net tangible assets to be less than $5,000,001 following such redemptions, and any limitations (including but not limited to cash requirements) agreed to in connection with the negotiation of terms of a proposed partnering transaction.
 

If we seek stockholder approval of our partnering transaction, our sponsor, directors, officers, or advisors or any of the related companies or their directors, officers or advisors may purchase shares in privately negotiated transactions or in the open market either prior to or following the completion of our partnering transaction. Such purchases will be

restricted except to the extent such purchases are able to be made in compliance with Rule 10b-18, which is a safe harbor from liability for manipulation under Section 9(a)(2) and Rule 10b-5 of the Exchange Act. None of the funds in the trust account will be used to purchase shares in such transactions.

 

If we have not completed our partnering transaction within 24 months from the closing of this offering (or 27 months following an agreement in principle event) or during any Extension Period, 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 (which is initially anticipated to be $10.00

per public share), including interest (which interest shall be net of taxes payable, and less up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding public shares.

 

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Redemptions in
Connection with our
Partnering Transaction

 

Other Permitted
Purchases of Public
Shares by our Sponsor,
Insiders or Related Companies

 

Redemptions if we Fail to
Complete a Partnering
Transaction

Impact to remaining stockholders

  The redemptions in connection with our partnering transaction will reduce the book value per share for our remaining stockholders, who will bear the burden of the deferred underwriting commissions and interest withdrawn in order to pay taxes (to the extent not paid from amounts accrued as interest on the funds held in the trust account).   If the permitted purchases described above are made, there will be no impact to our remaining stockholders because the purchase price would not be paid by us.   The redemption of our public shares if we fail to complete our partnering transaction will reduce the book value per share for the shares held by our sponsor, who will be our only remaining stockholder after such redemptions.

Comparison of This Offering to Those of Blank Check Companies Subject to Rule 419

The following table compares the terms of this offering to the terms of an offering by a blank check company subject to the provisions of Rule 419. This comparison assumes that the gross proceeds, underwriting commissions and underwriting expenses of our offering would be identical to those of an offering undertaken by a company subject to Rule 419, and that the underwriters will not exercise their over-allotment option. None of the provisions of Rule 419 apply to our offering.

 

    

Terms of Our Offering

  

Terms Under a Rule 419 Offering

Escrow of offering proceeds

   NYSE listing rules provide that at least 90% of the gross proceeds from this offering and the sale of the private placement units be deposited in a trust account. $300,000,000 of the net proceeds of this offering and the sale of the private placement units will be deposited into a United States-based trust account at J.P. Morgan Chase with Continental Stock Transfer & Trust Company acting as trustee.    Approximately $255,150,000 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.

Investment of net proceeds

   $300,000,000 of the net offering proceeds and the sale of the private placement units held in trust will be invested only in United States government treasury bills with a maturity of 185 days or less or in money market funds investing solely in United States Treasuries and meeting certain conditions under Rule 2a-7 under the Investment Company Act.    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.

 

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Terms of Our Offering

  

Terms Under a Rule 419 Offering

Receipt of interest on escrowed funds

   Interest on proceeds from the trust account to be paid to stockholders is reduced by: (1) any taxes paid or payable; and (2) in the event of any liquidation for failure to complete our partnering transaction 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 partnering transaction.

Limitation on fair value or net assets of target business

   NYSE listing rules require that our partnering transaction must be with one or more target businesses that have an aggregate fair market value equal to at least 80% of the value of the trust account (excluding any deferred underwriting commissions and taxes payable on interest earned on the trust account) at the time of our signing a definitive agreement in connection with our partnering transaction.    The fair value or net assets of a target business must represent at least 80% of the maximum offering proceeds.

Trading of securities issued

   The units will begin trading on or promptly after the date of this prospectus. The Series A common stock and warrants constituting the units will begin separate trading on the 52nd day following the date of this prospectus, unless Evercore Group L.L.C. and Barclays Capital Inc. inform us of their 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’ over-allotment option 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    No trading of the units or the underlying common stock and warrants would be permitted until the completion of a partnering transaction. During this period, the securities would be held in the escrow or trust account.

 

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Terms of Our Offering

  

Terms Under a Rule 419 Offering

   updated financial information to reflect the exercise of the underwriters’ over-allotment option.   

Exercise of the warrants

   The warrants cannot be exercised until the later of 30 days after the completion of our partnering transaction and 12 months from the closing of this offering.    The warrants could be exercised prior to the completion of a partnering transaction, 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 stockholders with the opportunity to redeem their public shares for cash equal to their pro rata share of the aggregate amount then on deposit in the trust account, calculated as of two business days prior to the completion of our partnering transaction, including interest, which interest shall be net of taxes payable, upon the completion of our partnering transaction, subject to the limitations described herein. We may not be required by applicable law or stock exchange rule to hold a stockholder vote. If we are not required by applicable law or stock exchange rule and do not otherwise decide to hold a stockholder vote, we will, pursuant to our amended and restated certificate of incorporation, 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 partnering transaction and the redemption rights as is required under the SEC’s proxy rules. If, however, we hold a stockholder 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    A prospectus containing information pertaining to the partnering transaction 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 stockholder of the company or require the return of his, her or its 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 stockholder. 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.

 

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Terms of Our Offering

  

Terms Under a Rule 419 Offering

   tender offer rules. Pursuant to the tender offer rules, the tender offer period will be not less than 20 business days and, in the case of a stockholder vote, a final proxy statement would be mailed to public stockholders at least 10 days prior to the stockholder vote. However, we expect that a draft proxy statement would be made available to such stockholders well in advance of such time, providing additional notice of redemption if we conduct redemptions in conjunction with a proxy solicitation. If we seek stockholder approval, we will complete our partnering transaction only if the holders of a majority of the outstanding shares of our common stock voted are voted in favor of the partnering transaction, subject to any other vote required by applicable law. A quorum for such meeting will consist of the holders present in person or by proxy of shares of outstanding capital stock of the company representing a majority of all outstanding shares of capital stock of the company entitled to vote at such meeting. Additionally, each public stockholder may elect to redeem its public shares without voting and, if it does vote, irrespective of whether it votes for or against the proposed transaction.   

Partnering transaction deadline

   If we have not completed a partnering transaction within 24 months from the closing of this offering (or 27 months following an agreement in principle event) or during any Extension Period, we will: (1) cease all operations except for the purpose of winding up; (2) as promptly as reasonably possible but not more than 10 business days thereafter, redeem the public shares, at a per-share    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.

 

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Terms of Our Offering

  

Terms Under a Rule 419 Offering

   price, payable in cash, equal to the aggregate amount then on deposit in the trust account, including interest (which interest shall be net of taxes payable, and less up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding public shares, which redemption will completely extinguish public stockholders’ rights as stockholders (including the right to receive further liquidating distributions, if any); and (3) as promptly as reasonably possible following such redemption, subject to the approval of our remaining stockholders and our board of directors, dissolve and liquidate, subject in each case to our obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law.   

Release of funds

   Except with respect to interest earned on the funds held in the trust account that may be released to us to pay our taxes, if any, the funds held in the trust account will not be released from the trust account until the earliest of: (1) the completion of our partnering transaction; (2) the redemption of any public shares properly submitted in connection with a stockholder vote to amend our amended and restated certificate of incorporation (A) to modify the substance or timing of our obligation to allow redemptions in connection with our partnering transaction or to redeem 100% of our public shares if we do not complete our partnering transaction within 24 months from the closing of this offering (or 27 months following an agreement in principle event) or (B) with respect to any other provision relating to stockholders’    The proceeds held in the escrow account are not released until the earlier of the completion of a partnering transaction and the failure to effect a partnering transaction within the allotted time.

 

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Terms of Our Offering

  

Terms Under a Rule 419 Offering

   rights or pre-partnering transaction activity; and (3) the redemption of all of our public shares if we have not completed our partnering transaction within 24 months from the closing of this offering (or 27 months following an agreement in principle event), subject to applicable law.   

Limitation on redemption rights of stockholders holding more than 15% of the shares sold in this offering if we hold a stockholder vote

   If we seek stockholder approval of our partnering transaction and we do not conduct redemptions in connection with our partnering transaction pursuant to the tender offer rules, our amended and restated certificate of incorporation will provide that a public stockholder, together with any affiliate of such stockholder or any other person with whom such stockholder is acting in concert or as a “group” (as defined under Section 13 of the Exchange Act), will be restricted from redeeming its shares with respect to Excess Shares (more than an aggregate of 15% of the shares sold in this offering), without our prior consent. Our public stockholders’ inability to redeem Excess Shares will reduce their influence over our ability to complete our partnering transaction and they could suffer a material loss on their investment in us if they sell Excess Shares in open market transactions.    Most blank check companies provide no restrictions on the ability of stockholders to redeem shares based on the number of shares held by such stockholders in connection with a partnering transaction.

Tendering stock certificates in connection with a tender offer or redemption rights

   We may require our public stockholders seeking to exercise their redemption rights, whether they are record holders or hold their shares in “street name,” to either tender their certificates to our transfer agent prior to the date set forth in the tender offer documents or proxy materials mailed to such holders or up to two business days prior to the scheduled vote on the proposal to    In order to perfect redemption rights in connection with their partnering transactions, holders could vote against a proposed partnering transaction and check a box on the proxy card indicating such holders were seeking to exercise their redemption rights. After the partnering transaction was approved, the company would contact such stockholders to arrange for them to deliver

 

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Terms of Our Offering

  

Terms Under a Rule 419 Offering

   approve the partnering transaction 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
   their certificates to verify ownership.
   will furnish to holders of our public shares in connection with our partnering transaction will indicate whether we are requiring public stockholders to satisfy such delivery requirements. Accordingly, a public stockholder would have from the time we send out our tender offer materials until the close of the tender offer period, or up to two business days prior to the vote on the partnering transaction if we distribute proxy materials, as applicable, to tender its shares if it wishes to seek to exercise its redemption rights.   

Competition

We expect to encounter intense competition from other entities having a business objective similar to ours, including private investors (which may be individuals or investment partnerships), other blank check companies and other entities, domestic and international, competing for the types of businesses we intend to acquire. Many of these individuals and entities are well-established and have extensive experience in identifying and effecting, directly or indirectly, acquisitions of companies operating in or providing services to various industries. Many of these competitors possess greater technical, human and other resources or more local industry knowledge than we do and our financial resources will be relatively limited when contrasted with those of many of these competitors. Furthermore, our high vote capital structure differs from the typical capital structure of many other special purpose acquisition company competitors and may make us less attractive to an acquisition target or may make an acquisition more costly to complete. While we believe there will be numerous target businesses we could potentially acquire with the net proceeds of this offering and the sale of the private placement units, our ability to compete with respect to the acquisition of certain target businesses that are sizable will be limited by our available financial resources. This inherent competitive limitation gives others an advantage in pursuing the acquisition of certain target businesses. Furthermore, our obligation to pay cash in connection with our public stockholders who properly exercise their redemption rights may reduce the resources available to us for our partnering transaction and our outstanding warrants, and the future dilution they potentially represent, may not be viewed favorably by target businesses. Any of these factors may place us at a competitive disadvantage in successfully negotiating and completing a partnering transaction.

 

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Facilities

We currently maintain our executive offices at 2503 S. Hanley Road, St. Louis, Missouri 63144. The cost for this space is included in the $40,000 per month fee that we will pay Post and certain of its subsidiaries for office space, administrative and support services. We consider our current office space adequate for our current operations.

Employees

We currently have 2 officers and do not intend to have any full-time employees prior to the completion of our partnering transaction. Such officers are all employees of Post and receive their compensation directly from Post. Members of our management team are not obligated to devote any specific number of hours to our matters but they intend to devote as much of their time as they deem necessary to our affairs until we have completed our partnering transaction. The amount of time that any such person will devote in any time period to our company will vary based on whether a target business has been selected for our partnering transaction and the current stage of the partnering transaction process.

Periodic Reporting and Financial Information

We will register our units, Series A common stock and warrants under the Exchange Act and have reporting obligations, including the requirement that we file annual, quarterly and current reports with the SEC. In accordance with the requirements of the Exchange Act, our annual reports will contain financial statements audited and reported on by our independent registered public accounting firm.

We will provide stockholders with audited financial statements of the prospective target business as part of the tender offer materials or proxy solicitation materials sent to stockholders to assist them in assessing the target business. These financial statements may be required to be prepared in accordance with, or be reconciled to, GAAP or IFRS, depending on the circumstances and the historical financial statements may be required to be audited in accordance with PCAOB standards. These financial statement requirements may limit the pool of potential target businesses we may acquire because some targets may be unable to provide such financial statements in time for us to disclose such financial statements in accordance with federal proxy rules and complete our partnering transaction within the prescribed time frame. While this may limit the pool of potential partnering transaction candidates, we do not believe that this limitation will be material.

We will be required to evaluate our internal control procedures for the fiscal year ending December 31, 2022 as required by the Sarbanes-Oxley Act. Only in the event we are deemed to be a large accelerated filer or an accelerated filer, and no longer qualify as an emerging growth company, will we be required to comply with the independent registered public accounting firm attestation requirements on our internal control over financial reporting. A target business may not be in compliance with the provisions of the Sarbanes-Oxley Act regarding adequacy of its internal controls. The development of the internal controls of any such entity to achieve compliance with the Sarbanes-Oxley Act may increase the time and costs necessary to complete any such acquisition.

Prior to the effectiveness of the registration statement of which this prospectus forms a part, we filed a Registration Statement on Form 8-A with the SEC to voluntarily register our securities under Section 12 of the Exchange Act. As a result, we are subject to the rules and regulations promulgated under the Exchange Act. We have no current intention of filing a Form 15 to suspend our reporting or other obligations under the Exchange Act prior or subsequent to the completion of our partnering transaction.

We are an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the JOBS Act. As such, we are eligible to take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not “emerging growth companies” including, but not

 

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limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding a non-binding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. If some investors find our securities less attractive as a result, there may be a less active trading market for our securities and the prices of our securities may be more volatile.

In addition, Section 107 of the JOBS Act also provides that an “emerging growth company” can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an “emerging growth company” can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We intend to take advantage of the benefits of this extended transition period.

We will remain an emerging growth company until the earlier of (1) the last day of the fiscal year (a) following the fifth anniversary of the completion of this offering, (b) in which we have total annual gross revenue of at least $1.07 billion, or (c) in which we are deemed to be a large accelerated filer, which means the market value of our common stock that is held by non-affiliates exceeds $700 million as of the end of that fiscal year’s second fiscal quarter, and (2) the date on which we have issued more than $1.00 billion in non-convertible debt securities during the prior three-year period.

Legal Proceedings

There is no material litigation, arbitration or governmental proceeding currently pending against us or any members of our management team in their capacity as such, and we and the members of our management team have not been subject to any such proceeding in the 12 months preceding the date of this prospectus.

 

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MANAGEMENT

Directors and Executive Officers

Our directors and executive officers are as follows:

 

Name

  

Age

  

Title

Robert V. Vitale

   55    President and Chief Investment Officer

Bradly A. Harper

   47    Chief Financial Officer

Jeff A. Zadoks

   56    Director

Jim Dwyer

   62    Director

Jennifer Kuperman

   48    Director

Dave Peacock

   52    Director

David L. Taiclet

   57    Director

Robert V. Vitale, age 55, has served as our President and Chief Investment Officer since January 27, 2021. Mr. Vitale has been the President and Chief Executive Officer of Post, and a member of Post’s board of directors, since November 2014. Mr. Vitale is the Executive Chairman of BellRing, of which Post is the majority stockholder. Mr. Vitale also serves on the board of directors of 8th Avenue. Previously, Mr. Vitale served as Chief Financial Officer of Post from October 2011 until November 2014. He served as President and Chief Executive Officer of AHM Financial Group, LLC, a diversified provider of insurance brokerage and wealth management services, from 2006 until 2011 and previously was a partner of Westgate Equity Partners, LLC, a consumer-oriented private equity firm. Mr. Vitale also has served on the board of directors of Energizer Holdings, Inc., a publicly traded manufacturer and distributor of primary batteries, portable lighting products and automotive, appearance, performance, refrigerant and fragrance products, since August 2017. Mr. Vitale earned his undergraduate degree from St. Louis University and his MBA from Washington University.

Bradly A. Harper, age 47, has served as our Chief Financial Officer since January 27, 2021. Mr. Harper has served as Senior Vice President, Chief Accounting Officer and Principal Accounting Officer of Post since December 1, 2018. Mr. Harper served as the Vice President and Corporate Controller of Post from November 2014 to December 2018 and the Director of Corporate Accounting and Reporting of Post from December 2011 until November 2014. Prior to joining Post, Mr. Harper served as Assistant Controller of Savvis, Inc., a global leader in cloud infrastructure and hosted IT solutions for enterprises. Mr. Harper earned his undergraduate degree from the University of Missouri-Columbia.

Jeff A. Zadoks, age 56, has served as a Director since January 27, 2021. Mr. Zadoks has served as Post’s Executive Vice President since November 2017 and as Post’s Chief Financial Officer since November 2014. Mr. Zadoks previously served as Post’s Senior Vice President and Chief Financial Officer from November 2014 until November 2017. Mr. Zadoks served as Post’s Senior Vice President and Chief Accounting Officer from January 2014 until November 2014, and Post’s Corporate Controller from October 2011 until November 2014. Prior to joining Post, Mr. Zadoks served as Senior Vice President and Chief Accounting Officer at RehabCare Group, Inc., a leading provider of post-acute care in hospitals and skilled nursing facilities, from February 2010 to September 2011, and as Vice President and Corporate Controller of RehabCare Group from December 2003 until January 2010. Mr. Zadoks was selected to serve on our board of directors based on his significant leadership positions and roles in industries relevant to our business. Mr. Zadoks earned his undergraduate degree from the University of Illinois.

Jim Dwyer, age 62, has served as a member of our board of directors since May 25, 2021. Mr. Dwyer has been the Chairman of the board of directors of 8th Avenue since May 2020. Mr. Dwyer also served as the Chief Executive Officer of 8th Avenue from January 2018 until May 2020. Mr. Dwyer served as the President and CEO of Michael Foods, an operating company of Post, from October 2009 until February 2018. Mr. Dwyer was selected to serve on our board of directors based on his experience in significant leadership positions and roles in industries relevant to our business. Mr. Dwyer earned his undergraduate degree from The University of Virginia and his MBA from The Darden School at The University of Virginia.

 

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Jennifer Kuperman, age 48, has served as a member of our board of directors since May 25, 2021. Ms. Kuperman was Head of International Corporate Affairs at Alibaba Group Holding Limited, a multinational conglomerate holding company specializing in eCommerce, retail, internet and technology, from April 2016 until January 2021 and served as Vice President, International Corporate Affairs at Alibaba Group Holding Limited from August 2014 to April 2016. Prior to joining Alibaba Group Holding Limited, Ms. Kuperman was Senior Vice President of Corporate Brand and Reputation at Visa Inc., a global payments technology company, from April 2013 to August 2014 and Chief of Staff, Office of the Chairman and Chief Executive Officer at Visa Inc. from August 2010 to April 2013. Ms. Kuperman also served as Head of Global Corporate Communications and Citizenship at Visa Inc. from August 2008 to July 2010 and Head of Employee and Client Communication at Visa Inc. from August 2004 to June 2008. Ms. Kuperman serves on the board of directors of Post and on the board of directors of BellRing. Ms. Kuperman also serves on the board of directors of CoachArt, a nonprofit organization that provides arts and recreational opportunities to youth with chronic and life-threatening illnesses. Ms. Kuperman was selected to serve on our board of directors based on her experience in significant leadership positions and her international experience. Ms. Kuperman received her undergraduate degree from Middlebury College and her master’s of arts degree in organizational psychology from Columbia University in the City of New York.

Dave Peacock, age 52, has served as a member of our board of directors since May 25, 2021. Mr. Peacock has served as President and Chief Operating Officer of Schnucks Markets since May 2017. Prior to joining Schnucks’ management team, he was on the board of advisors for the firm as well as founder and Chairman of Vitaligent, LLC, a multi-unit restaurant franchisee. Mr. Peacock served as Senior Advisor to Anheuser-Busch from February 2012 until June 2012, President of Anheuser-Busch from November 2008 until January 2012, Vice President of Marketing of Anheuser-Busch from October 2007 until November 2008, and Vice President of Business Operations, Anheuser-Busch Incorporated from December 2004 until September 2007. Mr. Peacock was selected to serve on our board of directors based on his experience in significant leadership positions and roles in industries relevant to our business. Mr. Peacock earned his undergraduate degree from the University of Kansas and his MBA from Washington University.

David L. Taiclet, age 57, has served as a member of our board of directors since May 25, 2021. Mr. Taiclet has served as General Partner and Managing Director of the Lewis & Clark Partners AgriFood Investment Group since November 2018. Mr. Taiclet served in several leadership positions for 1800Flowers.com from May 2006 until May 2017 as CEO of Fannie May Confections Brands from May 2006 until October 2008 and, ultimately, as President of the Gourmet Food Group from October 2008 until May 2017. Mr. Taiclet held numerous positions in the Strategy and Business Development Group of Cargill, Inc., an international marketer, processor and distributor of food, financial and industrial products. Mr. Taiclet was selected to serve on our board of directors based on his experience in significant leadership positions. Mr. Taiclet earned his undergraduate degree from the University of Notre Dame and his MBA from Harvard University.

Number, Terms of Office and Election of Officers and Directors

Upon the effectiveness of the registration statement of which this prospectus forms a part, our board of directors consisted of five members. Following the consummation of our partnering transaction, our board of directors will be divided into three classes, with only one class of directors being elected in each year, and with each class (except for those directors appointed prior to our first annual meeting of stockholders) serving a three-year term. The term of office of the first class of directors, consisting of David Taiclet and Dave Peacock, will expire at our first annual meeting of stockholders following our partnering transaction. The term of office of the second class of directors, consisting of Jim Dwyer and Jennifer Kuperman, will expire at our second annual meeting of stockholders following our partnering transaction. The term of office of the third class of directors, consisting of Jeff Zadoks, will expire at our third annual meeting of stockholders following our partnering transaction.

 

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Prior to consummation of our partnering transaction, holders of our Series F common stock will have the right to elect all of our directors. Holders of our public shares will not have the right to vote on the election of directors during such time. These provisions of our amended and restated certificate of incorporation may only be amended if approved by holders of more than 50% of the total voting power of the outstanding shares of our common stock entitled to vote thereon as well as more than 50% of the outstanding Series F common stock. Approval of our partnering transaction will require the affirmative vote of a majority of our board directors, which must include a majority of our independent directors. Subject to any other special rights applicable to the stockholders, prior to our partnering transaction, any vacancies on our board of directors may be filled by the affirmative vote of a majority of the directors present and voting at the meeting of our board of directors that includes any directors representing our sponsor then on our board of directors, or by holders of a majority of the outstanding shares of our Series F common stock.

Our officers are appointed by the board of directors and serve at the discretion of the board of directors, rather than for specific terms of office. Our board of directors is authorized to appoint persons to the offices set forth in our amended and restated bylaws as it deems appropriate. Our amended and restated bylaws will provide that our officers may consist of a President, a Chief Financial Officer, Vice Presidents, a Secretary, a Treasurer, and such other officers as may be determined by the board of directors.

Director Independence

NYSE listing rules require that a majority of our board of directors be independent. An “independent director” is defined generally as a person other than an executive officer or employee of the company or any of its parents or subsidiaries or any other individual having a relationship which, in the opinion of the company’s board of directors, would interfere with the director’s exercise of independent judgment in carrying out the responsibilities of a director. We intend to add “independent directors” as defined in NYSE listing rules and applicable SEC rules prior to completion of this offering. Upon the effectiveness of the registration statement of which this prospectus forms a part, we expect to have three “independent directors” as defined in the NYSE listing rules and applicable SEC rules prior to completion of this offering. Our independent directors will have regularly scheduled meetings at which only independent directors are present.

Executive Officer and Director Compensation

Our executive officers are all employees of Post and receive their compensation directly from Post. Upon completion of this offering, we will execute a services agreement with Post pursuant to which Post will cause our management team and other Post personnel to provide us with the services we need to conduct our business in exchange for a flat monthly fee of $40,000.

We will pay fees in cash to each of our non-employee directors for service on our board of directors in the amounts of $50,000 on each of the closing of this offering, the one-year anniversary of the closing of this offering, and the earlier of (x) the two-year anniversary of the closing of this offering and (y) the closing of our partnering transaction.

In addition, our sponsor, Post and its subsidiaries, and their officers and directors will be reimbursed for any out-of-pocket expenses incurred in connection with activities on our behalf such as identifying potential target businesses and performing due diligence on suitable partnering transactions. Our audit committee will review on a quarterly basis all payments that were made by us to our sponsor, officers or directors or Post or its other subsidiaries.

After the completion of our partnering transaction, directors or members of our management team who remain with us may be paid consulting, management or other compensation from the combined company. All compensation paid by us to our directors and executive officers will be fully disclosed to stockholders, to the extent then known, in the tender offer materials or proxy solicitation materials furnished to our stockholders in connection with a proposed partnering transaction. It is unlikely the amount of such compensation will be

 

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known at the time such materials are distributed, because the directors of the post-combination business will be responsible for determining executive officer and director compensation. Any compensation to be paid to our executive officers after the completion of our partnering transaction will be determined by a corporate governance and compensation committee constituted solely by independent directors.

We are not party to any agreements with our executive officers and directors that provide for benefits upon termination of employment, although certain of the related companies are. The existence or terms of any such employment or consulting arrangements may influence our management’s motivation in identifying or selecting a target business, and we do not believe that the ability of our management to remain with us after the completion of our partnering transaction should be a determining factor in our decision to proceed with any potential partnering transaction.

Committees of the Board of Directors

Upon the effective date of the registration statement of which this prospectus forms a part, our board of directors had two standing committees: an audit committee and a corporate governance and compensation committee. Subject to phase-in rules and a limited exception, the rules of NYSE and Rule 10A-3 of the Exchange Act require that the audit committee of a listed company be comprised solely of independent directors. Subject to phase-in rules and a limited exception, the rules of NYSE require that the corporate governance and compensation committee of a listed company be comprised solely of independent directors. Both our audit committee and our corporate governance and compensation committee will be composed solely of independent directors.

Audit Committee

Upon the effectiveness of the registration statement of which this prospectus forms a part, we established an audit committee of the board of directors. David Taiclet, Dave Peacock and Jennifer Kuperman serve as members of our audit committee. David Taiclet, Dave Peacock and Jennifer Kuperman meet the independent director standard under NYSE listing rules and under Rule 10A-3(b)(1) of the Exchange Act, and Dave Peacock serves as chairperson of the audit committee.

Each member of the audit committee is financially literate and our board of directors may determine that an independent director qualifies as an “audit committee financial expert” as defined in applicable SEC rules.

We adopted an audit committee charter, which will detail the scope and principal functions of the audit committee, including:

 

   

assisting board oversight of (1) the integrity of our financial statements, (2) our compliance with legal and regulatory requirements, (3) our registered public accounting firm’s qualifications and independence, and (4) the performance of our internal audit function and registered public accounting firm;

 

   

the appointment, compensation, retention, replacement, and oversight of the work of the registered public accounting firm and any other independent registered public accounting firm engaged by us;

 

   

reviewing and approving the services to be provided by the registered public accounting firm for the coming year, including the scope of audits, audit plan and fees therefor;

 

   

reviewing and discussing with the 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 registered public accounting firm;

 

   

setting clear policies for audit partner rotation in compliance with applicable laws and regulations;

 

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obtaining and reviewing a report, at least annually, from the registered public accounting firm describing (1) the 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 audit 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 auditor, 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; and

 

   

reviewing with management, the 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.

Corporate Governance and Compensation Committee

Upon the effectiveness of the registration statement of which this prospectus forms a part, we established a corporate governance and compensation committee of the board of directors, consisting of David Taiclet, Dave Peacock and Jennifer Kuperman. David Taiclet, Dave Peacock and Jennifer Kuperman meet the independent director standard under NYSE listing rules, and Jennifer Kuperman serves as chairperson of the corporate governance and compensation committee. We adopted a corporate governance and compensation committee charter, which will detail the purpose, responsibilities, scope and principal functions of the corporate governance and compensation committee, including:

 

   

reviewing and approving on an annual basis the corporate goals and objectives relevant to our President’s compensation, evaluating our President’s performance in light of such goals and objectives and determining and approving the remuneration (if any) of our President based on such evaluation;

 

   

reviewing and approving the compensation of all of our other executive officers;

 

   

reviewing our executive compensation policies and plans;

 

   

implementing and administering our incentive compensation equity-based remuneration plans;

 

   

assisting management in complying with our proxy statement and annual report disclosure requirements;

 

   

approve direct and indirect remuneration of all non-President Section 16 executive officers and other executives as may be determined;

 

   

producing a report on executive compensation to be included in our annual proxy statement;

 

   

reviewing, evaluating and recommending changes, if appropriate, to the remuneration for directors;

 

   

identifying, screening and reviewing individuals qualified to serve as directors, consistent with criteria approved by the board, and recommending to the board of directors candidates for nomination for election at the annual meeting of stockholders 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;

 

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coordinating and overseeing the annual self-evaluation of the management in the governance of the company; and

 

   

reviewing our overall corporate governance from time to time and recommending improvements as and when necessary.

The charter also provides that the corporate governance and compensation committee may, in its sole discretion, retain or obtain the advice of a compensation consultant, independent legal counsel or other adviser and will be directly responsible for the appointment, compensation and oversight of the work of any such adviser. However, before engaging or receiving advice from a compensation consultant, external legal counsel or any other adviser, the corporate governance and compensation committee will consider the independence of each such adviser, including the factors required by NYSE and the SEC. The corporate governance and compensation committee may also, in its sole discretion, retain or obtain the advice of, and terminate, any search firm to be used to identify director candidates, and will be directly responsible for approving the search firm’s fees and other retention terms.

We have not formally established any specific, minimum qualifications that must be met or skills that are necessary for directors to possess. In general, in identifying and evaluating nominees for director, the board of directors considers educational background, diversity of professional experience, knowledge of our business, integrity, professional reputation, independence, wisdom, and the ability to represent the best interests of our stockholders. Prior to our partnering transaction, holders of our public shares will not have the right to recommend director candidates for nomination to our board of directors.

Compensation Committee Interlocks and Insider Participation

None of our executive officers currently serves, and in the past year has not served, (i) as a member of the compensation committee or board of directors of another entity, one of whose executive officers served on our corporate governance and compensation committee, or (ii) as a member of the compensation committee of another entity, one of whose executive officers served on our board of directors.

Code of Ethics

We have adopted a code of ethics and business conduct (our “Code of Ethics”) applicable to our directors, officers and employees. A copy of our Code of Ethics will be provided without charge upon request from us. We intend to disclose any amendments to or waivers of certain provisions of our Code of Ethics in a Current Report on Form 8-K. See “Where You Can Find Additional Information.”

Conflicts of Interest

All of our officers also serve as officers of one or more of the related companies, and there are overlapping directors with such entities. Our officers and members of our board of directors have fiduciary duties to our stockholders. Likewise, any such persons who serve in similar capacities at any of the related companies have fiduciary duties to that company’s stockholders. Therefore, such persons may have conflicts of interest or the appearance of conflicts of interest with respect to matters involving or affecting us and one or more of the related companies to which they owe fiduciary duties.

Each of our officers and directors has, and any of them in the future may have, additional fiduciary or contractual obligations to one or more other entities (including, without limitation, to one or more of the entities listed in this section) pursuant to which such officer or director may be required to present a partnering transaction opportunity to such entities before he or she presents such opportunity to us. Also, none of Post, our sponsor or any of our directors and officers is prohibited from sponsoring, investing or otherwise becoming involved with, any other blank check companies, including in connection with their partnering transactions.

 

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Accordingly, if any of our officers or directors becomes aware of a partnering transaction opportunity to which he or she has then-current fiduciary or contractual obligations to present such opportunity to another entity, including, in certain cases, to Post, he or she may only present such opportunity to us if such other entity, including, in certain cases, to Post, rejects the opportunity. Our amended and restated certificate of incorporation will provide that we renounce our interest in any corporate opportunity offered to any director or officer unless such opportunity is expressly offered to such person solely in his or her capacity as a director or officer of our company, such opportunity is one we are legally and contractually permitted to undertake and would otherwise be reasonable for us to pursue, and such person has no fiduciary or contractual obligation to present the opportunity to any other person or entity, including, in certain cases, to Post.

We do not believe, however, that the fiduciary, contractual or other obligations or duties of our officers or directors will materially affect our ability to complete our partnering transaction. We believe that potential conflicts with Post are naturally mitigated by the differing nature of the investments Post would typically consider most synergistic to the existing Post businesses and the types of transactions we expect to find most attractive based, in part, on transaction size and ability to operate as a standalone public company. Notwithstanding our belief regarding natural mitigation, Post and its subsidiaries may compete with us for acquisition opportunities that fall within Post’s investment objectives or strategies. A decision by Post to pursue an opportunity would preclude us from pursuing it and could have a negative impact on our ability to complete our partnering transaction.

Moreover, most of our directors and officers continue to own stock and options to purchase stock in one or more of the related companies. These ownership interests and/or such disparity could create, or appear to create, potential conflicts of interest when the applicable individuals are faced with decisions that could have different implications for our company and the related companies.

Potential investors should also be aware of the following other potential conflicts of interest:

 

   

None of our officers or directors is required to, nor will he or she, commit his or her full time to our affairs and, accordingly, each of our officers may have conflicts of interest in allocating his or her time among our operations, including our search for a partnering transaction, and these other businesses.

 

   

In the course of their other business activities, our officers and directors may become aware of investment and business opportunities that may be appropriate for presentation to us as well as the other entities of which they are also officers or directors. Our management may be required to present such business opportunities to such entities before presenting such opportunities to us.

 

   

Our sponsor, executive officers and directors will agree to waive their redemption rights with respect to our common stock held by them in connection with the completion of our partnering transaction. Additionally, our sponsor, executive officers and directors will agree to waive their redemption rights with respect to our common stock held by them if we fail to consummate our partnering transaction within 24 months (or 27 months upon an agreement in principle event) after the closing of this offering or during any Extension Period. However, if our sponsor, officers or directors then hold any public shares, they will be entitled to liquidating distributions from the trust account with respect to such public shares if we fail to complete our partnering transaction within the allotted time frame to complete our partnering transaction. If we do not complete our partnering transaction within such applicable time period, the proceeds of the sale of the private placement units held in the trust account will be used to fund the redemption of our public shares, and the private placement warrants will expire worthless. With certain exceptions as described under “Principal Stockholders — Transfers of Founder Shares and Private Placement Warrants,” the founder shares will not be transferable, assignable or salable by our sponsor until the earlier of: (1) one year after the completion of our partnering transaction; and (2) subsequent to our partnering transaction, (x) the date on which we complete a liquidation, merger, stock exchange, reorganization or other similar transaction that results in all of our public stockholders having the right to exchange their shares of common stock for cash, securities or other property or (y) if the last reported sale price of our Series A common stock

 

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equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after our partnering transaction. With certain exceptions, the private placement warrants and the shares of our common stock underlying such warrants will not be transferable, assignable or salable by our sponsor until 30 days after the completion of our partnering transaction. Since our sponsor, officers and directors may directly or indirectly own our common stock and warrants following this offering, our officers and directors may have a conflict of interest in determining whether a particular target business is an appropriate business with which to effectuate our partnering transaction.

 

   

Our key personnel may have a conflict of interest with respect to evaluating a particular partnering transaction 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 partnering transaction.

The conflicts described above may not be resolved in our favor.

In general, officers and directors of a corporation incorporated under the laws of the State of Delaware are required to present business opportunities to a corporation if:

 

   

the corporation is financially able to exploit the opportunity;

 

   

the opportunity is within the corporation’s line of business;

 

   

the corporation has an interest or expectancy in the opportunity; and

 

   

by taking the opportunity for his or her own, the corporate fiduciary will thereby be placed in a position inimical to his or her duties to the corporation.

Accordingly, as a result of multiple business affiliations, our officers and directors have similar legal obligations or duties relating to presenting business opportunities meeting the above-listed criteria to multiple entities. Below is a table summarizing the entities to which our officers and directors currently have fiduciary duties or contractual obligations that may present a conflict of interest: