☒ | 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 | N/A | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||
Units, each consisting of one Class A ordinary share and one-half of one redeemable warrant | ROSEU | Nasdaq Global Market | ||||
Class A ordinary shares, par value $0.0001 per share | ROSE | Nasdaq Global Market | ||||
Redeemable warrants, each whole warrant exercisable for one Class A ordinary share, each at an exercise price of $11.50 per share | ROSEW | Nasdaq Global Market |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☒ |
Page | ||||||
Item 1. | 1 | |||||
1 | ||||||
2 | ||||||
3 | ||||||
4 | ||||||
5 | ||||||
Item 2. | 17 | |||||
Item 3. | 20 | |||||
Item 4. | 21 | |||||
Item 6. | 22 | |||||
23 |
March 31, 2023 (Unaudited) | December 31, 2022 | |||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash | $ | 45,935 | $ | 96,119 | ||||
Prepaid expenses | 14,122 | 104,905 | ||||||
Due from affiliates | 25,000 | 25,000 | ||||||
Total current assets | 85,057 | 226,024 | ||||||
NON – CURRENT ASSETS | ||||||||
Investments held in Trust Account | 2,883,002 | 148,742,661 | ||||||
Total Non – Current Assets | 2,883,002 | 148,742,661 | ||||||
TOTAL ASSETS | $ | 2,968,059 | $ | 148,968,685 | ||||
LIABILITIES, REDEEMABLE ORDINARY SHARES AND SHAREHOLDERS’ DEFICIT | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable and accrued expenses | $ | 343,845 | $ | 223,997 | ||||
Total current liabilities | 343,845 | 223,997 | ||||||
LONG TERM LIABILITIES | ||||||||
Derivative warrant liabilities | 797,250 | 1,328,750 | ||||||
Deferred underwriting fee payable | 1,500,000 | 7,187,500 | ||||||
Total long-term liabilities | 2,297,250 | 8,516,250 | ||||||
Total liabilities | 2,641,095 | 8,740,247 | ||||||
COMMITMENTS AND CONTINGENCIES (NOTE 6) | ||||||||
Class A ordinary shares subject to possible redemption, $0.0001 par value, 256,894 and 14,375,000 shares at redemption value at March 31, 2023 and December 31, 2022, respectively | 2,883,002 | 148,742,661 | ||||||
SHAREHOLDERS’ DEFICIT | ||||||||
Preference shares, $0.0001 par value; 2,000,000 shares authorized; none issued and outstanding at March 31, 2023 and December 31, 2022 respectively | — | — | ||||||
Class A ordinary shares; $0.0001 par value; 200,000,000 shares authorized; 4,000,000 and 0 shares issued and outstanding (excluding 256,894 and 14,375,000 shares subject to possible redemption) at March 31, 2023 and December 31, 2022 | 400 | — | ||||||
Class B ordinary shares; $0.0001 par value; 20,000,000 shares authorized; 1,031,250 and 5,031,250 shares issued and outstanding at March 31, 2023 and December 31, 2022 respectively | 103 | 503 | ||||||
Additional paid-in capital | — | — | ||||||
Accumulated deficit | (2,556,541 | ) | (8,514,726 | ) | ||||
Total shareholders’ deficit | (2,556,038 | ) | (8,514,223 | ) | ||||
LIABILITIES, REDEEMABLE ORDINARY SHARES AND SHAREHOLDERS’ DEFICIT | $ | 2,968,059 | $ | 148,968,685 |
September 30, 2021 | ||||
ASSETS | ||||
OTHER ASSETS | ||||
Deferred offering costs | 399,334 | |||
Total other assets | 399,334 | |||
TOTAL ASSETS | $ | 399,334 | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
CURRENT LIABILITIES | ||||
Accounts payable and accrued expenses | $ | 9,619 | ||
Accrued offering costs | 236,348 | |||
Note payable - related party | 163,502 | |||
Total current liabilities | 409,469 | |||
TOTAL LIABILITIES | $ | 409,469 | ||
COMMITMENTS AND CONTINGENCIES | 0 | |||
SHAREHOLDERS’ EQUITY | ||||
Preferred stock, $0.0001 par value; 2,000,000 shares authorized; 0ne issued or outstanding | $ | 0 | ||
Class A ordinary shares; $0.0001 par value; 200,000,000 shares authorized; 0ne issued and outstanding | 0 | |||
Class B ordinary shares; $0.0001 par value; 20,000,000 shares authorized; 5,031,250 issued and outstanding (1) | 503 | |||
Additional paid-in capital | 24,497 | |||
Accumulated deficit | (35,135 | ) | ||
TOTAL SHAREHOLDERS’ EQUITY | (10,135 | ) | ||
TOTAL LIABILITIES AND | ||||
SHAREHOLDERS’ EQUITY | $ | 399,344 | ||
For the Three Months Ended March 31, | ||||||||
2023 | 2022 | |||||||
OPERATING EXPENSES | ||||||||
General and administrative expenses | $ | 261,708 | $ | 285,168 | ||||
Loss from operations | (261,708 | ) | (285,168 | ) | ||||
Other income: | ||||||||
Earnings on investments held in Trust Account and other interest | 400,820 | 14,780 | ||||||
Recovery of offering costs allocated to warrants | 270,725 | — | ||||||
Change in fair value of warrants | 531,500 | 2,951,706 | ||||||
Total other income | 1,203,045 | 2,966,486 | ||||||
Net income | $ | 941,337 | $ | 2,681,318 | ||||
Weighted average shares outstanding of Class A ordinary shares subject to redemption | 1,825,572 | 14,375,000 | ||||||
Basic and diluted net income per share, Class A ordinary shares subject to redemption | $ | 0.30 | $ | 0.14 | ||||
Weighted average shares outstanding of Class A and Class B ordinary shares not subject to redemption | 5,031,250 | 5,031,250 | ||||||
Basic and diluted net income per share, Class A and Class B ordinary shares not subject to redemption | $ | 0.08 | $ | (0.14 | ) |
For the three months period ended September 30, 2021 (Unaudited) | For the period March 29, 2021 (inception) through September 30, 2021 | |||||||
EXPENSES | ||||||||
General and administrative expenses | $ | 27,654 | $ | 35,135 | ||||
Total expenses | 27,654 | 35,135 | ||||||
NET LOSS | (27,654 | ) | (35,135 | ) | ||||
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING, BASIC AND DILUTED, REDEEMABLE SHARES SUBJECT TO REDEMPTION (1) | 4,375,000 | 4,375,000 | ||||||
BASIC AND DILUTED NET INCOME PER SHARE, REDEEMABLE SHARES SUBJECT TO REDEMPTION | $ | 0.00 | ($ | 0.01 | ) | |||
Class A ordinary shares subject to possible redemption | Class A ordinary shares not subject to possible redemption | Class B ordinary shares | Additional paid-in capital | Accumulated deficit | Total Shareholders’ Deficit | |||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||
Balance, January 1, 2023 | 14,375,000 | $ | 148,742,661 | $ | — | $ | — | $ | 5,031,250 | $ | 503 | $ | — | $ | (8,514,726 | ) | $ | (8,514,223 | ) | |||||||||||||||||
Redemptions | (14,118,106 | ) | (146,259,586 | ) | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Recovery of Deferred Underwriter Commissions | — | — | — | — | — | — | — | 5,416,775 | 5,416,775 | |||||||||||||||||||||||||||
Remeasurement of redeemable Class A ordinary shares to redemption value | — | 399,927 | — | — | — | — | — | (399,927 | ) | (399,927 | ) | |||||||||||||||||||||||||
Reclassification of Class B shares to Class A shares | — | — | 4,000,000 | 400 | (4,000,000 | ) | (400 | ) | — | — | — | |||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | 941,337 | 941,337 | |||||||||||||||||||||||||||
Balance, March 31, 2023 | 256,894 | $ | 2,883,002 | $ | 4,000,000 | $ | 400 | $ | 1,031,250 | $ | 103 | $ | — | $ | (2,556,541 | ) | $ | (2,556,038 | ) |
Ordinary shares | ||||||||||||||||||||||||||||
Class��A | Class B | Total shareholder’s equity | ||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Additional paid-in capital | Accumulated deficit | |||||||||||||||||||||||
Balance, March 29, 2021 (inception) | 0 | $ | 0 | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||
Issuance of Class B ordinary shares to Sponsor (1) | — | — | 5,031,250 | 503 | 24,497 | — | 25,000 | |||||||||||||||||||||
Net loss | — | — | — | — | 7,481 | 7,481 | ||||||||||||||||||||||
Balance, June 30 , 2021 | 0 | $ | 0 | 5,031,250 | $ | 503 | $ | 24,497 | $ | 7,481 | $ | |||||||||||||||||
Net loss | — | — | — | 0 | 0 | (27,654 | ) | (27,654 | ) | |||||||||||||||||||
Balance, September 30, 2021 (unaudited) | 0 | $ | 0 | 5,031,250 | $ | 503 | $ | 24,497 | $ | (35,135 | ) | $ | (10,135 | ) | ||||||||||||||
Class A ordinary shares subject to possible redemption | Class B ordinary shares | Additional paid-in capital | Accumulated deficit | Total Shareholders’ Deficit | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Balance, January 1, 2022 | 14,375,000 | $ | 146,625,000 | 5,031,250 | $ | 503 | $ | — | $ | (12,607,205 | ) | $ | (12,606,702 | ) | ||||||||||||||
Remeasurement of redeemable Class A ordinary shares to redemption value | — | 17,519 | — | — | — | (17,519 | ) | (17,519 | ) | |||||||||||||||||||
Net income | — | — | — | — | — | 2,681,318 | 2,681,318 | |||||||||||||||||||||
Balance, March 31, 2022 | 14,375,000 | $ | 146,642,519 | 5,031,250 | $ | 503 | $ | — | $ | (9,943,406 | ) | $ | (9,942,903 | ) |
For the Three Months Ended March 31, | ||||||||
2023 | 2022 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net income | $ | 941,337 | $ | 2,681,318 | ||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||
Earnings on investments held in Trust Account | — | (14,765 | ) | |||||
Recovery of offering costs allocated to warrants | (270,725 | ) | — | |||||
Change in fair value of warrants | (531,500 | ) | (2,951,706 | ) | ||||
Changes in operating assets and liabilities: | ||||||||
Prepaid expenses and other assets | 90,783 | 47,120 | ||||||
Accounts payable and accrued expenses | 119,848 | 52,543 | ||||||
Net cash provided by (used in) operating activities | 349,743 | (185,490 | ) | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Cash withdrawn from Trust Account in connection with redemption | 146,259,586 | — | ||||||
Reinvestment of dividend income on Trust Account | (399,927 | ) | — | |||||
Net cash provided by investing activities | 145,859,659 | — | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Redemption of Class A common stock subject to possible redemption | (146,259,586 | ) | — | |||||
Net cash used in financing activities | (146,259,586 | ) | — | |||||
NET CHANGE IN CASH | $ | (50,184 | ) | $ | (185,490 | ) | ||
CASH, BEGINNING OF PERIOD | 96,119 | 658,747 | ||||||
CASH, END OF PERIOD | $ | 45,935 | $ | 473,257 | ||||
Non-cash investing and financing activities: | ||||||||
Reclassification of Class B shares to Class A shares | $ | 400 | $ | — | ||||
Impact of the recovery of deferred commission by the underwriters | $ | 5,416,775 | $ | — | ||||
Remeasurement of redeemable Class A ordinary shares to redemption value | $ | 399,927 | $ | 17,519 |
For the period March 29, 2021 (inception) through September 30, 2021 | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net loss | $ | (35,135 | ) | |
Accounts payable and accrued expenses | 35,135 | |||
Net cash flows used in operating activities | 0 | |||
NET CHANGE IN CASH | 0 | |||
CASH, BEGINNING OF PERIOD | 0 | |||
CASH, END OF PERIOD | $ | 0 | ||
Supplemental disclosure of noncash activities: | ||||
Payment of deferred offering costs and accrued expenses by note payable - related party | $ | 163,502 | ||
Deferred offering costs included in accrued offering costs | $ | 236,368 | ||
Payment of deferred offering costs by the Sponsor in exchange for the issuance of Class B ordinary shares | $ | 25,000 | ||
Net income | $ | 941,337 | ||
Less: Accretion of temporary equity to redemption value | (399,927 | ) | ||
Net income excluding accretion of temporary equity to redemption | $ | 541,410 |
Class A shares subject to redemption | Class A and Class B shares not subject to redemption | Total | ||||||||||
Weighted Average Shares outstanding | 1,825,572 | 5,031,250 | 6,856,822 | |||||||||
Ownership percentage | 27 | % | 73 | % | ||||||||
Total income allocated | $ | 250,623 | $ | 690,714 | $ | 941,337 | ||||||
Less: Accretion allocated based on ownership percentage | (106,477 | ) | (293,450 | ) | (399,927 | ) | ||||||
Plus: Accretion applicable to Class A redeemable shares | 399,927 | — | 399,927 | |||||||||
Total income by class | $ | 544,073 | $ | 397,264 | $ | 941,337 | ||||||
Weighted Average Shares outstanding | 1,825,572 | 5,031,250 | 6,856,822 | |||||||||
Income per share | $ | 0.30 | $ | 0.08 |
Net income | $ | 2,681,318 | ||
Less: Accretion of temporary equity to redemption value | (17,509 | ) | ||
Net income excluding accretion of temporary equity to redemption | $ | 2,663,809 |
Class A shares subject to redemption | Class B shares not subject to redemption | Total | ||||||||||
Weighted Average Shares outstanding | 14,375,000 | 5,031,250 | 19,406,250 | |||||||||
Ownership percentage | 74 | % | 26 | % | ||||||||
Total income allocated | $ | 1,986,161 | $ | 695,157 | $ | 2,681,318 | ||||||
Less: Accretion allocated based on ownership percentage | (12,970 | ) | (4,539 | ) | (17,509 | ) | ||||||
Plus: Accretion applicable to Class A redeemable shares | 17,509 | — | 17,509 | |||||||||
Total income by class | $ | 1,990,700 | $ | 690,618 | $ | 2,681,318 | ||||||
Weighted Average Shares outstanding | 14,375,000 | 5,031,250 | 19,406,250 | |||||||||
Income per share | $ | 0.14 | $ | 0.14 |
• | if, and only if, the last reported sale price (the “closing price”) of our Class A ordinary shares equals or exceeds $18.00 per share (as adjusted for adjustments to the number of shares issuable upon exercise or the exercise price of a warrant as described under the heading “Description of Securities — Warrants — Public Shareholders’ 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. |
Level 1 | Level 2 | Level 3 | ||||||||||
Assets: | ||||||||||||
U.S. Money Market Funds | $ | 2,883,002 | $ | — | $ | — | ||||||
Liabilities: | ||||||||||||
Warrant Liability - Public Warrants | $ | 431,250 | $ | — | $ | — | ||||||
Warrant Liability - Private Warrants | $ | — | $ | 366,000 | $ | — |
Level 1 | Level 2 | Level 3 | ||||||||||
Assets: | ||||||||||||
U.S. Money Market Funds | $ | 148,742,661 | $ | — | $ | — | ||||||
Liabilities: | ||||||||||||
Warrant Liability - Public Warrants | $ | 718,750 | $ | — | $ | — | ||||||
Warrant Liability - Private Warrants | $ | — | $ | 610,000 | $ | — |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item 6. | Exhibits. |
Certification of Principal Executive Officer Pursuant to Securities Exchange Act Rules 13a-14(a) and 15(d)-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||
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Certification of Principal Executive Officer Pursuant to Securities Exchange Act Rules 13a-14(a) and 15(d)-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||
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Certification of Principal Financial Officer Pursuant to Securities Exchange Act Rules 13a-14(a) and 15(d)-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||
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Certification of Principal Financial Officer Pursuant to Securities Exchange Act Rules 13a-14(a) and 15(d)-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||
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Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||
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Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||
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Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||
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Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||
101.INS* | Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |
101.SCH* | Inline XBRL Taxonomy Extension Schema Document. | |
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document. | |
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |
104* | Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document, which is contained in Exhibit 101). |
* | Filed herewith. |
** | Furnished herewith. |
ROSE HILL ACQUISITION CORPORATION | |||||||
Date: | May 15, 2023 | By: | /s/ Felipe Canales | ||||
Name: | Felipe Canales | ||||||
Title: | |||||||
(Principal Executive Officer) | |||||||
Date: | May 15, 2023 | By: | /s/ Marco Simental | ||||
Name: | Marco Simental | ||||||
Title: | Co-Chief Executive Officer and Director | ||||||
(Principal Executive Officer) | |||||||
Date: | May 15, 2023 | By: | /s/ Albert Hill IV | ||||
Name: | Albert Hill IV | ||||||
Title: | |||||||
(Principal Financial and Accounting Officer) | |||||||
Date: | May 15, 2023 | By: | /s/ Juan Jose Rosas | ||||
Name: | Juan Jose Rosas | ||||||
Title: | |||||||
(Principal Financial and Accounting Officer) |