☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
incorporation or organization)
of Menlo Park, CA 94025
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☒ |
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ITEM 1. | FINANCIAL STATEMENTS |
March 31, 2021 | December 31, 2020 | |||||||
(unaudited) | ||||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash | $ | 610,522 | $ | — | ||||
Prepaid expenses | 692,333 | — | ||||||
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Total Current Assets | 1,302,855 | — | ||||||
Deferred offering costs | — | 392,268 | ||||||
Cash and marketable securities held in Trust Account | 450,005,862 | — | ||||||
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TOTAL ASSETS | $ | 451,308,717 | $ | 392,268 | ||||
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LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Liabilities | ||||||||
Current liabilities | ||||||||
Accrued expenses | $ | 93,926 | $ | — | ||||
Accrued offering costs | 252,678 | |||||||
Promissory note – related party | — | 119,590 | ||||||
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Total Current Liabilities | 93,926 | 372,268 | ||||||
FPA liability | 1,664,090 | — | ||||||
Deferred underwriting fee payable | 15,750,000 | — | ||||||
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Total Liabilities | 17,508,016 | 372,268 | ||||||
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Commitments and Contingencies | ||||||||
Class A ordinary shares subject to possible redemption 42,880,070 shares at a redemption value of $10.00 per share | 428,800,700 | — | ||||||
Shareholders’ Equity | ||||||||
Preference shares, $0.0001 par value; 1,000,000 shares authorized; no shares issued and outstanding | — | — | ||||||
Class A ordinary shares, $0.0001 par value; 200,000,000 shares authorized; 3,219,930 shares issued and outstanding (excluding 42,880,070 shares subject to possible redemption) | 322 | — | ||||||
Class B ordinary shares, $0.0001 par value; 20,000,000 shares authorized; 11,250,000 shares issued and outstanding (1) | 1,125 | 1,125 | ||||||
Additional paid-in capital | 6,918,078 | 23,875 | ||||||
Accumulated deficit | (1,919,524 | ) | (5,000 | ) | ||||
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Total Shareholders’ Equity | 5,000,001 | 20,000 | ||||||
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TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 451,308,717 | $ | 392,268 | ||||
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June 30, | December 31, | |||||||
2021 | 2020 | |||||||
(unaudited) | ||||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash | $ | 553,866 | $ | — | ||||
Prepaid expenses | 577,083 | — | ||||||
Total Current Assets | 1,130,949 | — | ||||||
Deferred offering costs | — | 392,268 | ||||||
Cash and marketable securities held in Trust Account | 450,012,700 | — | ||||||
TOTAL ASSETS | $ | 451,143,649 | $ | 392,268 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Liabilities | ||||||||
Current liabilities | ||||||||
Accrued expenses | $ | 166,201 | $ | — | ||||
Accrued offering costs | — | 252,678 | ||||||
Promissory note – related party | 0 | 119,590 | ||||||
Total Current Liabilities | 166,201 | 372,268 | ||||||
FPA liability | 1,156,478 | — | ||||||
Deferred underwriting fee payable | 15,750,000 | — | ||||||
Total Liabilities | 17,072,679 | 372,268 | ||||||
Commitments and Contingencies | 0 | 0 | ||||||
Class A ordinary shares subject to possible redemption 42,907,096 and 0 shares as of June 30, 2021 and December 31, 202 0 , respectively, at a redemption value of $10.00 per share | 429,070,960 | — | ||||||
Shareholders’ Equity | ||||||||
Preference shares, $0.0001 par value; 1,000,000 shares authorized; 0 shares issued and outstanding | 0 | — | ||||||
Class A ordinary shares, $0.0001 par value; 200,000,000 shares authorized; 3,192,904 and 0 shares issued and outstanding (excluding 42,907,096 and 0 shares subject to possible redemption) as of June 30, 2021 and December 31, 2020, respectively | 319 | — | ||||||
Class B ordinary shares, $0.0001 par value; 20,000,000 shares authorized; 11,250,000 shares issued and outstanding (1) | 1,125 | 1,125 | ||||||
Additional paid-in capital | 6,647,821 | 23,875 | ||||||
Accumulated deficit | (1,649,255 | ) | (5,000 | ) | ||||
Total Shareholders’ Equity | 5,000,010 | 20,000 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 451,143,649 | $ | 392,268 | ||||
(1) | At December 31, 2020, includes an aggregate of up to 1,250,000 Class B ordinary shares that were subject to forfeiture depending on the extent to which the underwriters’ over-allotment option is exercised (see Note 5). As a result of the full exercise of the underwriters’ over-allotment, 0 shares remain subject to forfeiture. |
THREE MONTHS ENDED | SIX MONTHS ENDED | |||||||
June 30, 2021 | June 30, 2021 | |||||||
Operating and formation costs | $ | 244,182 | $ | 500,478 | ||||
Loss from operations | (244,182 | ) | (500,478 | ) | ||||
Other income (expense): | ||||||||
Interest earned on marketable securities held in Trust Account | 6,839 | 12,701 | ||||||
Change in fair value of FPA liability | 507,612 | (1,156,478 | ) | |||||
Net income (loss) | $ | 270,269 | $ | (1,644,255 | ) | |||
Weighted average shares outstanding, Class A redeemable ordinary shares | 45,000,000 | 45,000,000 | ||||||
Basic and diluted net income per share, Class A redeemable ordinary shares | $ | (0.00 | ) | $ | (0.00 | ) | ||
Weighted average shares outstanding, Class A and Class B non-redeemable ordinary shares | 12,350,000 | 12,207,182 | ||||||
Basic and diluted net loss per share, Class A and Class B non-redeemable ordinary shares | $ | 0.02 | $ | (0.14 | ) | |||
Class A | Class B | Additional | Total | |||||||||||||||||||||||||
Ordinary Shares | Ordinary Shares | Paid-in Capital | Accumulated Deficit | Shareholders’ Equity | ||||||||||||||||||||||||
Shares | Amount | Shares | �� | Amount | ||||||||||||||||||||||||
Balance — December 31, 2020 (1) | — | $ | — | 11,250,000 | $ | 1,125 | $ | 23,875 | $ | (5,000 | ) | $ | 20,000 | |||||||||||||||
Sale of 45,000,000 Shares, net of underwriting discounts | 45,000,000 | 4,500 | — | — | 424,690,725 | — | 424,695,225 | |||||||||||||||||||||
Sale of 1,100,000 Private Placement Shares | 1,100,000 | 110 | — | — | 10,999,890 | — | 11,000,000 | |||||||||||||||||||||
Class A ordinary shares subject to possible redemption | (42,880,070 | ) | (4,288 | ) | 0 | 0 | (428,796,412 | ) | 0 | (428,800,700 | ) | |||||||||||||||||
Net loss | — | — | — | — | — | (1,914,524 | ) | (1,914,524 | ) | |||||||||||||||||||
Balance — March 31, 2021 | 3,219,930 | 322 | 11,250,000 | 1,125 | 6,918,078 | (1,919,524 | ) | 5,000,001 | ||||||||||||||||||||
Class A ordinary shares subject to possible redemption | (27,026 | ) | (3 | ) | 0 | 0 | (270,257 | ) | 0 | (270,260 | ) | |||||||||||||||||
Net Income | — | — | — | — | — | 270,269 | 270,269 | |||||||||||||||||||||
Balance – June 30, 2021 | 3,192,904 | $ | 319 | 11,250,000 | $ | 1,125 | $ | 6,647,821 | $ | (1,649,255 | ) | $ | 5,000,010 | |||||||||||||||
(1) | Includes an aggregate of up to 1,250,000 Class B ordinary shares that were subject to forfeiture depending on the extent to which the underwriters’ over-allotment option is exercised (see Note 5). As a result of the full exercise of the underwriters’ over-allotment, |
THREECASH FLOWS
(UNAUDITED)
Operating and formation costs | $ | 256,296 | ||
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Loss from operations | (256,296 | ) | ||
Other income (expense): | ||||
Interest earned on marketable securities held in Trust Account | 5,862 | |||
Change in fair value of FPA liability | (1,664,090 | ) | ||
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Net loss | $ | (1,914,524 | ) | |
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Weighted average shares outstanding, Class A redeemable ordinary shares | 45,000,000 | |||
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Basic and diluted net income per share, Class A redeemable ordinary shares | $ | (0.00 | ) | |
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Weighted average shares outstanding, Class A and Class B non-redeemable ordinary shares | 12,062,778 | |||
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Basic and diluted net loss per share, Class A and Class B non-redeemable ordinary shares | $ | (0.16 | ) | |
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Cash Flows from Operating Activities: | ||||
Net loss | $ | (1,644,255 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Change in fair value of FPA liability | 1,156,478 | |||
Interest earned on marketable securities held in Trust account | (12,701 | ) | ||
Changes in operating assets and liabilities: | ||||
Prepaid expenses | (577,083 | ) | ||
Accrued expenses | 166,201 | |||
Net cash used in operating activities | (911,360 | ) | ||
Cash Flows from Investing Activities: | ||||
Investment of cash in Trust Account | (450,000,000 | ) | ||
Net cash used in investing activities | (450,000,000 | ) | ||
Cash Flows from Financing Activities: | ||||
Proceeds from sale of Class A ordinary shares, net of underwriting discounts paid | 441,000,000 | |||
Proceeds from sale of Private Placement Shares | 11,000,000 | |||
Repayment of promissory note – related party | (144,544 | ) | ||
Payment of offering costs | (390,230 | ) | ||
Net cash provided by financing activities | 451,465,226 | |||
Net Change in Cash | 553,866 | |||
Cash – Beginning of period | 0 | |||
Cash – End of period | $ | 553,866 | ||
Non-Cash investing and financing activities: | ||||
Offering costs paid through promissory note | $ | 24,955 | ||
Deferred underwriting fee payable | $ | 15,750,000 | ||
Initial classification of Class A ordinary shares subject to possible redemption | $ | 430,715,220 | ||
Change in value of Class A ordinary shares subject to possible redemption | $ | (1,644,260 | ) | |
CONDENSED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
THREE MONTHS ENDED MARCH 31, 2021
(UNAUDITED)
Class A Ordinary Shares | Class B Ordinary Shares | Additional Paid-in Capital | Accumulated Deficit | Total Shareholders’ Equity | ||||||||||||||||||||||||
Shares | Amount | Shares(1) | Amount | |||||||||||||||||||||||||
Balance — January 1, 2021 | — | $ | — | 11,250,000 | $ | 1,125 | $ | 23,875 | $ | (5,000 | ) | $ | 20,000 | |||||||||||||||
Sale of 45,000,000 Shares, net of underwriting discounts | 45,000,000 | 4,500 | — | — | 424,690,725 | — | 424,695,225 | |||||||||||||||||||||
Sale of 1,100,000 Private Placement Shares | 1,100,000 | 110 | — | — | 10,999,890 | — | 11,000,000 | |||||||||||||||||||||
Class A ordinary shares subject to possible redemption | (42,880,070 | ) | (4,288 | ) | — | — | (428,796,412 | ) | — | (428,800,700 | ) | |||||||||||||||||
Net loss | — | — | — | — | — | (1,914,524 | ) | (1,914,524 | ) | |||||||||||||||||||
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Balance – March 31, 2021 | 3,219,930 | $ | 322 | 11,250,000 | $ | 1,125 | $ | 6,918,078 | $ | (1,919,524 | ) | $ | 5,000,001 | |||||||||||||||
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The accompanying notes are an integral part of the unaudited condensed financial statements.
ALTIMETER GROWTH CORP. 2
CONDENSED STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2021
(UNAUDITED)
Cash Flows from Operating Activities: | ||||
Net loss | $ | (1,914,524 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Change in fair value of FPA liability | 1,664,090 | |||
Interest earned on marketable securities held in Trust Account | (5,862 | ) | ||
Changes in operating assets and liabilities: | ||||
Prepaid expenses and other current assets | (692,333 | ) | ||
Accrued expenses | 93,926 | |||
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Net cash used in operating activities | (854,703 | ) | ||
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Cash Flows from Investing Activities: | ||||
Investment of cash in Trust Account | (450,000,000 | ) | ||
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Net cash used in investing activities | (450,000,000 | ) | ||
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Cash Flows from Financing Activities: | ||||
Proceeds from sale of Class A ordinary shares, net of underwriting discounts paid | 441,000,000 | |||
Proceeds from sale of Private Placement Shares | 11,000,000 | |||
Repayment of promissory note – related party | (144,545 | ) | ||
Payment of offering costs | (390,230 | ) | ||
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Net cash provided by financing activities | 451,465,225 | |||
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Net Change in Cash | 610,522 | |||
Cash – Beginning of period | — | |||
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Cash – End of period | $ | 610,522 | ||
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Non-Cash investing and financing activities: | ||||
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Offering costs paid through promissory note | $ | 24,955 | ||
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Deferred underwriting fee payable | $ | 15,750,000 | ||
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Initial classification of Class A ordinary shares subject to possible redemption | $ | 430,715,220 | ||
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Change in value of Class A ordinary shares subject to possible redemption | $ | (1,914,520 | ) | |
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The accompanying notes are an integral part of the unaudited condensed financial statements.
STATEMENTS
STATEMENTS
statements.
STATEMENTS
2020.
Three Months Ended March 31, | ||||
2021 | ||||
Redeemable Class A Ordinary Shares | ||||
Numerator: Earnings allocable to Redeemable Class A Ordinary Shares | ||||
Interest Income | $ | 5,862 | ||
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Net Earnings | $ | 5,862 | ||
Denominator: Weighted Average Redeemable Class A Ordinary Shares | ||||
Redeemable Class A Ordinary Shares, Basic and Diluted | 45,000,000 | |||
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Earnings/Basic and Diluted Redeemable Class A Ordinary Shares | $ | 0.00 | ||
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Non-Redeemable Class B Ordinary Shares | ||||
Numerator: Net Income minus Redeemable Net Earnings | ||||
Net Loss | $ | (1,914,524 | ) | |
Redeemable Net Earnings | 5,862 | |||
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Non-Redeemable Net Loss | $ | (1,920,386 | ) | |
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Denominator: Weighted Average Non-Redeemable Class A and Class B Ordinary Shares | ||||
Non-Redeemable Class A and Class B Ordinary Shares, Basic and Diluted | 12,062,778 | |||
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Loss/Basic and Diluted Non-Redeemable Class A and Class B Ordinary Shares | $ | (0.16 | ) | |
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for the three months ended June 30, 2021:
Three M onths | ||||
Ended June 30, | ||||
2021 | ||||
Redeemable Class A Ordinary Shares | ||||
Numerator: Earnings allocable to Redeemable Class A Ordinary Shares | ||||
Interest Income | $ | 6,389 | ||
Net Earnings | $ | 6,389 | ||
Denominator: Weighted Average Redeemable Class A Ordinary Shares | ||||
Redeemable Class A Ordinary Shares, Basic and Diluted | 45,000,000 | |||
Earnings/Basic and Diluted Redeemable Class A Ordinary Shares | $ | 0.00 | ||
Non-Redeemable Class B Ordinary Shares | ||||
Numerator: Net Income minus Redeemable Net Earnings | ||||
Net Income | $ | 270,269 | ||
Redeemable Net Earnings | 6,839 | |||
Non-Redeemable NetIncome | $ | 263,430 | ||
Denominator: Weighted Average Non-Redeemable Class A and Class B Ordinary Shares | ||||
Non-Redeemable Class A and Class B Ordinary Shares, Basic and Diluted | 12,350,000 | |||
Loss/Basic and Diluted Non-Redeemable Class A and Class B Ordinary Shares | $ | 0.02 | ||
Six Months | ||||
Ended June 30, | ||||
2021 | ||||
Redeemable Class A Ordinary Shares | ||||
Numerator: Earnings allocable to Redeemable Class A Ordinary Shares | ||||
Interest Income | $ | 12,701 | ||
Net Earnings | $ | 12,701 | ||
Denominator: Weighted Average Redeemable Class A Ordinary Shares | ||||
Redeemable Class A Ordinary Shares, Basic and Diluted | 45,000,000 | |||
Earnings/Basic and Diluted Redeemable Class A Ordinary Shares | $ | 0.00 | ||
Non-Redeemable Class B Ordinary Shares | ||||
Numerator: Net Income minus Redeemable Net Earnings | ||||
Net Income | $ | (1,644,255) | ||
Redeemable Net Earnings | 12,701 | |||
Non-Redeemable Net Loss | $ | (1,656,956) | ||
Denominator: Weighted Average Non-Redeemable Class A and Class B Ordinary Shares | ||||
Non-Redeemable Class A and Class B Ordinary Shares, Basic and Diluted | 12,207,182 | |||
Loss/Basic and Diluted Non-Redeemable Class A and Class B Ordinary Shares | $ | (0.14 | ) | |
statements.
redemption, respectively.
Level 1: | Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. | |
Level 2: | Observable inputs other than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets or liabilities and quoted prices for identical assets or liabilities in markets that are not active. | |
Level 3: | Unobservable inputs based on our assessment of the assumptions that market participants would use in pricing the asset or liability. |
Description | Level | March 31 2021 | ||||||
Assets: | ||||||||
Investments held in Trust Account – U.S. Treasury Securities Money Market Fund | 1 | $ | 450,005,862 | |||||
Liabilities: | ||||||||
FPA Liability | 3 | 1,664,090 |
Description | Level | June 30 2021 | ||||||
Assets: | ||||||||
Investments held in Trust Account – U.S. Treasury Securities Money Market Fund | 1 | $ | 450,012,700 | |||||
Liabilities: | ||||||||
FPA Liability | 3 | $ | 1,156,478 |
Input | March 31, 2021 | January 5, 2021 | ||||||
Risk-free interest | 0.1 | % | 0.1 | % | ||||
Years to expected IBC date | 1.25 | 1.5 | ||||||
Conditional probability of Securities Issued | 85.0 | % | 85.0 | % | ||||
Fair value of security at valuation date | $ | 10.38 | $ | 9.98 |
Input | J 0 ,2021 | January 11 ,2021 | ||||||
Risk-free interest | 0.1 | % | 0.1 | % | ||||
Years to expected IBC date | 1.00 | 1.5 | ||||||
Conditional probability of Securities Issued | 90.0 | % | 85.0 | % | ||||
Fair value of security at valuation date | $ | 10.25 | $ | 9.98 |
FPA Liability | ||||
Fair value, January 11, 2021 | $ | 73,207 | ||
Recognized loss on change in fair value | 1,590,883 | |||
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Fair value, March 31, 2021 | $ | 1,664,090 | ||
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FPA Liability | ||||
Fair value, January 11, 202 1 | $ | 73,207 | ||
Recognized loss on change in fair value | 1,590,883 | |||
Fair value, March 31, 2021 | 1,664,090 | |||
Recognized gain on change in fair value | (507,612 | ) | ||
Fair value, June 30, 202 1 | $ | 1,156,478 | ||
ITEM 2. |
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ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 4. | CONTROLS AND PROCEDURES |
March 31,June 30, 2021 to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and accurately reported within the time periods specified in rules and forms of the SEC.plan to enhancehave enhanced our processes to identify and appropriately apply applicable accounting requirements to better evaluate and understand the nuances of the complex accounting standards that apply to our financial statements. Our plans at this time include providingWe have also provided enhanced access to accounting literature, research materials and documents and increased communication among our personnel and third-party professionals with whom we consult regarding complex accounting applications. The elements of our remediation plan can only be accomplished over time, and we can offer no assurance that these initiatives will ultimately have the intended effects.
ITEM 1A. | RISK FACTORS. |
ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS. |
ITEM 3. | DEFAULTS UPON SENIOR SECURITIES. |
ITEM 4. | MINE SAFETY DISCLOSURES. |
ITEM 5. | OTHER INFORMATION. |
ITEM 6. | EXHIBITS. |
* | Filed herewith. |
** | Furnished. |
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ALTIMETER GROWTH CORP. 2 | ||||||
Date: | /s/ Brad Gerstner | |||||
Name: | ||||||
Title: | Brad Gerstner Chief Executive Officer, President and Chairman | |||||
(Principal Executive Officer) | ||||||
Date: | /s/ Hab Siam | |||||
Name: | ||||||
Title: | Hab Siam General Counsel | |||||
(Principal Financial and Principal Accounting Officer) |
20