☒ | 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 |
Cayman Islands | 98-1550179 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
PO Box 1093, Boundary Hall, Cricket Square, Grand Cayman Cayman Islands | KY1-1102 | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Units, each consisting of one Class A Ordinary Share, $0.0001 par value, and one-half of one redeemable warrant | AVAN.U | New York Stock Exchange | ||
Class A Ordinary Shares included as part of the units | AVAN | New York Stock Exchange | ||
Redeemable warrants included as part of the units, each whole warrant exercisable for one Class A Ordinary Share at an exercise price of $11.50 | AVAN WS | New York Stock Exchange |
Large, accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☒ |
Page | ||||||
PART 1 — FINANCIAL INFORMATION | ||||||
Item 1. | Financial Statements | |||||
1 | ||||||
2 | ||||||
3 | ||||||
4 | ||||||
5 | ||||||
Item 2. | 22 | |||||
Item 3. | 26 | |||||
Item 4. | 26 | |||||
Item 1. | 27 | |||||
Item 1A. | 27 | |||||
Item 2. | 28 | |||||
Item 3. | 28 | |||||
Item 4. | 28 | |||||
Item 5. | 28 | |||||
Item 6. | 29 | |||||
30 |
September 30, 2021 | December 31, 2020 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash | $ | 300,410 | $ | 1,194,821 | ||||
Prepaid expenses | 512,689 | 20,949 | ||||||
Total Current Assets | 813,099 | 1,215,770 | ||||||
Investments held in Trust Account | 600,035,972 | 600,008,617 | ||||||
TOTAL ASSETS | $ | 600,849,071 | $ | 601,224,387 | ||||
LIABILITIES AND SHAREHOLDERS’ DEFICIT | ||||||||
Current liabilities | ||||||||
Accounts payable and accrued expenses | $ | 107,807 | $ | 2,250 | ||||
Accrued offering costs | 0 | 3,193 | ||||||
Advances from related party | 468,236 | 0 | ||||||
Total Current Liabilities | 576,043 | 5,443 | ||||||
FPA liabilities | 1,024,994 | 8,483,278 | ||||||
Warrant liabilities | 28,600,000 | 66,440,000 | ||||||
Deferred underwriting fee payable | 21,000,000 | 21,000,000 | ||||||
Total Liabilities | 51,201,037 | 95,928,721 | ||||||
Commitments and Contingencies | 0 | 0 | ||||||
Class A ordinary shares subject to possible redemption, 60,000,000 shares at $10.00 per share as of September 30, 2021 and December 31, 2020 | 600,000,000 | 600,000,000 | ||||||
Shareholders’ Deficit | ||||||||
Preference shares, $0.0001 par value; 5,000,000 shares authorized; 0 non-redeemable shares issued and outstanding | 0— | 0— | ||||||
Class A ordinary shares, $0.0001 par value; 500,000,000 shares authorized; NaN issued or outstanding and that it excludes shares subject to redemption. | 0 | 0 | ||||||
Class B ordinary shares, $0.0001 par value; 50,000,000 shares authorized; 15,000,000 shares issued and outstanding at September 30, 2021, and December 31, 2020 | 1,500 | 1,500 | ||||||
Additional paid-in capital | 0 | 0 | ||||||
Accumulated deficit | (50,353,466 | ) | (94,705,834 | ) | ||||
Total Shareholders’ Deficit | (50,351,966 | ) | (94,704,334 | ) | ||||
TOTAL LIABILITIES AND SHAREHOLDERS’ DEFICIT | $ | 600,849,071 | $ | 601,224,387 | ||||
Three Months Ended September 30, 2021 | Nine Months Ended September 30, 2021 | For the Period from July 24, 2020 (inception) through September 30, 2020 | Three Months Ended September 30, 2021 | Nine Months Ended September 30, 2021 | For the Period from July 24, 2020 (inception) through September 30, 2020 | |||||||||||||||||||
Operating costs | $ | 274,019 | $ | 973,271 | $ | 8,130 | $ | 274,019 | $ | 973,271 | $ | 8,130 | ||||||||||||
Loss from operations | (274,019 | ) | (973,271 | ) | (8,130 | ) | (274,019 | ) | (973,271 | ) | (8,130 | ) | ||||||||||||
Other income: | ||||||||||||||||||||||||
Interest earned on investments held in Trust Account | 9,219 | 27,355 | — | 9,219 | 27,355 | — | ||||||||||||||||||
Change in fair value of warrant liabilities | 17,160,000 | 37,840,000 | — | 17,160,000 | 37,840,000 | — | ||||||||||||||||||
Change in fair value of FPA liabilities | 1,291,669 | 7,458,284 | — | 1,291,669 | 7,458,284 | — | ||||||||||||||||||
Total other income | 18,460,888 | 45,325,639 | — | 18,460,888 | 45,325,639 | — | ||||||||||||||||||
Net income (loss) | $ | 18,186,869 | $ | 44,352,368 | $ | (8,130 | ) | $ | 18,186,869 | $ | 44,352,368 | $ | (8,130 | ) | ||||||||||
Weighted average shares outstanding, Class A ordinary shares | 60,000,000 | 60,000,000 | — | 60,000,000 | 60,000,000 | — | ||||||||||||||||||
Basic and diluted net income per share, Class A ordinary shares | $ | 0.24 | $ | 0.59 | $ | — | $ | 0.24 | $ | 0.59 | — | |||||||||||||
Weighted average shares outstanding, Class B ordinary shares | 15,000,000 | 15,000,000 | 15,000,000 | 15,000,000 | 15,000,000 | 15,000,000 | ||||||||||||||||||
Basic and diluted net income per share, Class B ordinary shares | $ | 0.24 | $ | 0.59 | $ | — | $ | 0.24 | $ | 0.59 | $ | — | ||||||||||||
Class A Ordinary Shares | Class B Ordinary Shares | Additional Paid-in | Accumulated | Total Shareholders’ | Class A Ordinary Shares | Class B Ordinary Shares | Additional Paid-in | Accumulated | Total Shareholders’ | |||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Deficit | Deficit | Shares | Amount | Shares | Amount | Capital | Deficit | Deficit | |||||||||||||||||||||||||||||||||||||||||||
Balance — December 31, 2020 | 0 | $ | 0 | 15,000,000 | $ | 1,500 | $ | 0 | $ | (94,705,834 | ) | $ | (94,704,334 | ) | 0 | $ | 0 | 15,000,000 | $ | 1,500 | $ | 0 | $ | (94,705,834 | ) | $ | (94,704,334 | ) | ||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 24,902,196 | 24,902,196 | — | — | — | — | — | 24,902,196 | 24,902,196 | ||||||||||||||||||||||||||||||||||||||||||
Balance — March 31, 2021 | 0 | $ | 0 | 15,000,000 | $ | 1,500 | $ | 0 | $ | (69,803,638 | ) | $ | (69,802,138 | ) | ||||||||||||||||||||||||||||||||||||||||||
Balance — March 31, 2021 (as restated, see Note 2) | 0 | $ | 0 | 15,000,000 | $ | 1,500 | $ | 0 | $ | (69,803,638 | ) | $ | (69,802,138 | ) | ||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 1,263,303 | 1,263,303 | — | — | — | — | — | 1,263,303 | 1,263,303 | ||||||||||||||||||||||||||||||||||||||||||
Balance — June 30, 2021 | 0 | $ | 0 | 15,000,000 | $ | 1,500 | $ | 0 | $ | (68,540,335 | ) | $ | (68,538,835 | ) | ||||||||||||||||||||||||||||||||||||||||||
Balance — June 30, 2021 (as restated, see Note 2) | 0 | $ | 0 | 15,000,000 | $ | 1,500 | $ | 0 | $ | (68,540,335 | ) | $ | (68,538,835 | ) | ||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 18,186,869 | 18,186,869 | — | — | — | — | — | 18,186,869 | 18,186,869 | ||||||||||||||||||||||||||||||||||||||||||
Balance — September 30, 2021 | 0 | $ | 0 | 15,000,000 | $ | 1,500 | $ | 0 | $ | (50,353,466 | ) | $ | (50,351,966 | ) | 0 | $ | 0 | 15,000,000 | $ | 1,500 | $ | 0 | $ | (50,353,466 | ) | $ | (50,351,966 | ) | ||||||||||||||||||||||||||||
Class A Ordinary Shares | Class B Ordinary Shares | Additional Paid-in Capital | Accumulated Deficit | Total Shareholder’s Equity | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Balance — July 24, 2020 (inception) | — | $ | — | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||
Issuance of Class B ordinary shares to Sponsor (1) | — | — | 17,250,000 | 1,725 | 23,275 | — | 25,000 | |||||||||||||||||||||
Net loss | — | — | — | — | — | (8,130 | ) | (8,130 | ) | |||||||||||||||||||
Balance — September 30, 2020 | — | $ | — | 17,250,000 | $ | 1,725 | $ | 23,275 | $ | (8,130 | ) | $ | 16,870 | |||||||||||||||
(1) | Included an aggregate of up to 2,250,000 Class B ordinary shares that were subject to forfeiture depending on the extent to which the underwriters’ over-allotment option was exercised. On November 20, 2020, the underwriters’ election to exercise their over-allotment option expired unexercised, resulting in the forfeiture of 2,250,000 Founder Shares. (see Note 5). On October 1, 2020 the Company effected a share capitalization resulting in 17,250,000 Class B ordinary shares issued and outstanding. All share and per-share amounts have been retroactively restated to reflect the share capitalization (see Note 5). |
Nine months Ended September 30, | For the Period from July 24, 2020 (inception) Through September 30, | |||||||
2021 | 2020 | |||||||
Cash Flows from Operating Activities: | ||||||||
Net income (loss) | $ | 44,352,368 | $ | (8,130 | ) | |||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||
Change in fair value of warrant liability | (37,840,000 | ) | — | |||||
Change in fair value of FPA liability | (7,458,284 | ) | ||||||
Interest earned on investments held in Trust Account | (27,355 | ) | — | |||||
Changes in operating assets and liabilities: | ||||||||
Prepaid expenses | (491,740 | ) | — | |||||
Accounts payable and accrued expenses | 105,557 | 5,630 | ||||||
Net cash used in operating activities | (1,359,454 | ) | (2,500 | ) | ||||
Cash Flows from Financing Activities: | ||||||||
Advances from - related party | 468,236 | 100,000 | ||||||
Payment of offering costs | (3,193 | ) | (74,635 | ) | ||||
Net cash provided by financing activities | 465,043 | 25,365 | ||||||
Net Change in Cash | (894,411 | ) | 22,865 | |||||
Cash – Beginning of period | 1,194,821 | 0 | ||||||
Cash – End of period | $ | 300,410 | $ | 22,865 | ||||
Non-Cash investing and financing activities: | ||||||||
Offering costs included in accrued offering costs | $ | — | $ | 246,351 | ||||
Offering costs paid by Sponsor in exchange for issuance of founder shares | $ | — | $ | 25,000 | ||||
Offering costs paid through promissory note | $ | — | $ | 157,468 | ||||
Balance Sheet as of December 31, 2020 (audited) | As Previously Reported | Adjustment | As Revised | |||||||||
Class A ordinary shares subject to possible redemption | $ | 500,295,660 | $ | 99,704,340 | $ | 600,000,000 | ||||||
Class A ordinary shares | $ | 997 | $ | (997 | ) | $ | — | |||||
Additional paid-in capital | $ | 30,753,192 | $ | (19,983,155 | ) | $ | — | |||||
Accumulated deficit | $ | (25,755,683 | ) | $ | (79,720,188 | ) | $ | (94,705,834 | ) | |||
Total Shareholders’ Equity (Deficit) | $ | 5,000,006 | $ | (99,704,340 | ) | $ | (97,704,334 | ) |
As Previously Reported | Adjustment | As Restated | ||||||||||
Balance Sheet as of March 31, 2021 (unaudited) | ||||||||||||
Class A ordinary shares subject to possible redemption | $ | 525,197,860 | $ | 74,802,140 | $ | 600,000,000 | ||||||
Class A ordinary shares | $ | 748 | $ | (748 | ) | $ | — | |||||
Additional paid-in capital | $ | 5,851,241 | $ | (5,851,241 | ) | $ | — | |||||
Retained earnings/(Accumulated deficit) | $ | (853,487 | ) | $ | (68,950,151 | ) | $ | (69,803,638 | ) | |||
Total Shareholders’ Equity (Deficit) | $ | 5,000,002 | $ | (74,802,140 | ) | $ | (69,802,138 | ) | ||||
Class A Ordinary shares subject to possible redemption | 52,519,786 | 7,480,214 | 60,000,000 | |||||||||
Balance Sheet as of June 30, 2021 (unaudited) | ||||||||||||
Class A ordinary shares subject to possible redemption | $ | 526,461,160 | $ | (73,538,840 | ) | $ | 600,000,000 | |||||
Class A ordinary shares | $ | 735 | $ | (735 | ) | $ | — | |||||
Additional paid-in capital | $ | 4,587,954 | $ | (4,587,954 | ) | $ | — | |||||
Retained earnings/(Accumulated deficit) | $ | 409,816 | $ | (68,950,151 | ) | $ | (68,540,335 | |||||
Total Shareholders’ Equity (Deficit) | $ | 5,000,005 | $ | (73,538,840 | ) | $ | (68,538,835 | ) | ||||
Class A Ordinary shares subject to possible redemption | 52,646,116 | 7,353,884 | 60,000,000 | |||||||||
Statement of Operations for the Three Months Ended March 31, 2021 (unaudited) | ||||||||||||
Basic and diluted weighted average shares outstanding, Ordinary shares subject to possible redemption | 60,000,000 | (60,000,000 | ) | — | ||||||||
Basic and diluted net income per share, Ordinary shares subject to possible redemption | $ | — | $ | — | $ | — | ||||||
Basic and diluted weighted average shares outstanding, Non-redeemable ordinary shares | 15,000,000 | (15,000,000 | ) | — | ||||||||
Basic and diluted net income per share, Non-redeemable ordinary shares | $ | 1.66 | $ | (1.66 | ) | $ | — | |||||
Basic and diluted weighted average shares outstanding, Class A ordinary shares | — | 60,000,000 | 60,000,000 | |||||||||
Basic and diluted net loss per share, Class A ordinary share | $ | — | $ | 0.33 | $ | 0.33 | ||||||
Basic and diluted weighted average shares outstanding, Class B ordinary share | — | 15,000,000 | 15,000,000 | |||||||||
Basic and diluted net income per share, Class B ordinary share | $ | — | $ | 0.33 | $ | 0.33 | ||||||
Statement of Operations for the Three Months Ended June 30, 2021 (unaudited) | ||||||||||||
Basic and diluted weighted average shares outstanding, Ordinary shares subject to possible redemption | 60,000,000 | (60,000,000 | ) | — | ||||||||
Basic and diluted net income per share, Ordinary shares subject to possible redemption | $ | — | $ | — | $ | — | ||||||
Basic and diluted weighted average shares outstanding, Non-redeemable ordinary shares | 15,000,000 | (15,000,000 | ) | — | ||||||||
Basic and diluted net income per share, Non-redeemable ordinary shares | $ | 0.08 | $ | (0.08 | ) | $ | — | |||||
Basic and diluted weighted average shares outstanding, Class A ordinary shares | — | 60,000,000 | 60,000,000 | |||||||||
Basic and diluted net loss per share, Class A ordinary share | $ | — | $ | 0.02 | $ | 0.02 | ||||||
Basic and diluted weighted average shares outstanding, Class B ordinary share | — | 15,000,000 | 15,000,000 | |||||||||
Basic and diluted net income per share, Class B ordinary share | $ | — | $ | 0.02 | $ | 0.02 | ||||||
Statement of Operations for the Six Months Ended June 30, 2021 (unaudited) | ||||||||||||
Basic and diluted weighted average shares outstanding, Ordinary shares subject to possible redemption | 60,000,000 | (60,000,000 | ) | — | ||||||||
Basic and diluted net income per share, Ordinary shares subject to possible redemption | $ | — | $ | — | $ | — | ||||||
Basic and diluted weighted average shares outstanding, Non-redeemable ordinary shares | 15,000,000 | (15,000,000 | ) | — | ||||||||
Basic and diluted net income per share, Non-redeemable ordinary shares | $ | 1.74 | $ | (1.74 | ) | $ | — | |||||
Basic and diluted weighted average shares outstanding, Class A ordinary shares | — | 60,000,000 | 60,000,000 | |||||||||
Basic and diluted net loss per share, Class A ordinary share | $ | — | $ | 0.35 | $ | 0.35 | ||||||
Basic and diluted weighted average shares outstanding, Class B ordinary share | — | 15,000,000 | 15,000,000 | |||||||||
Basic and diluted net income per share, Class B ordinary share | $ | — | $ | 0.35 | $ | 0.35 | ||||||
Statement of Cash Flows for the Three Months Ended March 31, 2021 (unaudited) | ||||||||||||
Non-Cash investing and financial activities: | ||||||||||||
Change in value of Class A ordinary shares subject to possible redemption | (24,902,200 | ) | 24,902,200 | — | ||||||||
Statement of Cash Flows for the Six Months Ended June 30, 2021 (unaudited) | ||||||||||||
Non-Cash investing and financial activities : | ||||||||||||
Change in value of Class A ordinary shares subject to possible redemption | 26,165,500 | (26,165,500 | ) | — |
Gross proceeds | $ | 600,000,000 | ||
Less: | ||||
Proceeds allocated to Public Warrants | $ | (37,500,000 | ) | |
Class A ordinary shares issuance costs | (31,473,651 | ) | ||
Plus: | ||||
Accretion of carrying value to redemption value | $ | 68,973,651 | ||
Class A ordinary shares subject to possible redemption | $ | 600,000,000 | ||
Three Months Ended September 30, 2021 | Nine Months Ended September 30, 2021 | For the Period from July 24, 2020 (inception) Through September 30, 2020 | ||||||||||||||||||||||
Class A | Class B | Class A | Class B | Class A | Class B | |||||||||||||||||||
Basic and diluted net income (loss) per ordinary share | ||||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||
Allocation of net income (loss), as adjusted | $ | 14,549,495 | $ | 3,637,374 | $ | 35,481,894 | $ | 8,870,474 | $ | 0 | $ | (8,130 | ) | |||||||||||
Denominator: | ||||||||||||||||||||||||
Basic and diluted weighted average shares outstanding | 60,000,000 | 15,000,000 | 60,000,000 | 15,000,000 | 0 | 15,000,000 | ||||||||||||||||||
Basic and diluted net income per ordinary share | $ | 0.24 | $ | 0.24 | $ | 0.59 | $ | 0.59 | $ | 0 | $ | 0 |
Description | Level | September 30, 2021 | December 31, 2020 | |||||||||||||
Assets: | ||||||||||||||||
Investments held in Trust Account | 1 | $ | 600,035,972 | $ | 600,008,617 | |||||||||||
Liabilities: | ||||||||||||||||
Warrant Liabilities — Public Warrants | 1 | $ | 19,500,000 | $ | 45,300,000 | |||||||||||
Warrant Liabilities — Private Placement Warrants | 2 | $ | 9,100,000 | $ | 21,140,000 | |||||||||||
FPA Liability | 3 | $ | 1,024,994 | $ | 8,483,278 |
September 30, 2021 | December 31, 2020 | |||||||
Risk-free interest rate | 0.05 | % | 0.10 | % | ||||
Time to expiration, in Years | 0.33 | 0.83 | ||||||
Unit price | $ | 10.10 | $ | 10.84 | ||||
Forward Price | $ | 10.00 | $ | 10.00 |
FPA | ||||
Fair value as of December 31, 2020 | $ | 8,483,278 | ||
Change in fair value | (7,458,284 | ) | ||
Fair value as of September 30, 2021 | $ | 1,024,994 | ||
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET-RISK |
ITEM 4. | CONTROLS AND PROCEDURES |
ITEM 1. | LEGAL PROCEEDINGS. |
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. |
AVANTI ACQUISITION CORP. | ||||||
Date: 21, 2021 | /s/ Nassef Sawiris | |||||
Name: | Nassef Sawiris | |||||
Title: | Chief Executive Officer | |||||
(Principal Executive Officer) | ||||||
/s/ Johann Dumas | ||||||
Name: | Johann Dumas | |||||
Title: | Chief Financial Officer | |||||
(Principal Financial Officer and Accounting Officer) |