☒ | 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 | 98-1616579 | |
(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, $0.0001 par value, and one-half of one redeemable warrant | LGVCU | The Nasdaq Stock Market LLC | ||
Class A ordinary shares, par value $0.0001 par value | LGVC | The Nasdaq Stock Market LLC | ||
Warrants, each whole warrant exercisable for one Class A ordinary share at an exercise price of $11.50 per share | LGVCW | The Nasdaq Stock Market LLC |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☒ |
LAMF GLOBAL VENTURES CORP. I
FORM 10-Q FOR THE QUARTER ENDED JUNESEPTEMBER 30, 2023
TABLE OF CONTENTS
i
JUNE 30, 2023 (Unaudited) | DECEMBER 31, 2022 | |||||||
Assets | ||||||||
Current Assets | ||||||||
Cash | $ | 39,138 | $ | 268,199 | ||||
Prepaid expenses | 251,825 | 213,411 | ||||||
Total current assets | 290,963 | 481,610 | ||||||
Other Assets | ||||||||
Cash and Investments in Trust Account | 31,232,249 | 262,000,174 | ||||||
Reimbursement receivable | 2,974,500 | 2,974,500 | ||||||
Total other assets | 34,206,749 | 264,974,674 | ||||||
Total assets | $ | 34,497,712 | $ | 265,456,284 | ||||
Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Deficit | ||||||||
Liabilities | ||||||||
Current Liabilities | ||||||||
Due to Sponsor | $ | 88,196 | $ | 88,196 | ||||
Sponsor a dvance | 108,333 | — | ||||||
Accrued expenses | 2,899,278 | 806,643 | ||||||
Non-redemption liabilit y | 304,453 | — | ||||||
Total current liabilities | 3,400,260 | 894,839 | ||||||
Long-Term Liabilities | ||||||||
Deferred underwriting fee payable | 9,915,000 | 9,915,000 | ||||||
Deferred advisory fees payable | 2,974,500 | 2,974,500 | ||||||
Total long-term liabilities | 12,889,500 | 12,889,500 | ||||||
Total liabilities | 16,289,760 | 13,784,339 | ||||||
Commitments and Contingencies | ||||||||
Class A Ordinary Shares subject to possible redemption, 2,952,616 at $ 10.54 per share as of June 30, 2023 and25,300,000 at $10.35 per share as of December 31, 2022 | 31,132,249 | 261,900,213 | ||||||
Shareholders’ Deficit | ||||||||
Preference Shares; $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding | — | — | ||||||
Class A Ordinary Shares; $0.0001 par value; 500,000,000 shares authorized; 9,539,333 issued and outstanding (excluding 2,952,616 shares subject to possible redemption) at June 30, 2023 and 1,106,000 issued and outstanding at December 31, 2022 | 953 | 110 | ||||||
Class B Ordinary Shares; $0.0001 par value; 50,000,000 shares authorized; none issued and outstanding at June 30, 2023 and 8,433,333 issued and outstanding at December 31, 2022 | — | 843 | ||||||
Additional paid-in capital | 293,572 | — | ||||||
Accumulated deficit | (13,218,822 | ) | (10,229,221 | ) | ||||
Total Shareholders’ Deficit | (12,924,297 | ) | (10,228,268 | ) | ||||
Total Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Deficit | $ | 34,497,712 | $ | 265,456,284 | ||||
September 30, 2023 (Unaudited) | December 31, 2022 | |||||||
Assets | ||||||||
Current Assets | ||||||||
Cash | $ | 95,615 | $ | 268,199 | ||||
Prepaid expenses | 147,595 | 213,411 | ||||||
Total current assets | 243,210 | 481,610 | ||||||
Other Assets | ||||||||
Cash and investments in Trust Account | 31,635,094 | 262,000,174 | ||||||
Reimbursement receivable | — | 2,974,500 | ||||||
Total other assets | 31,635,094 | 264,974,674 | ||||||
Total assets | $ | 31,878,304 | $ | 265,456,284 | ||||
Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Deficit Liabilities | ||||||||
Current Liabilities | ||||||||
Due to Sponsor | $ | 88,196 | $ | 88,196 | ||||
Sponsor advance | 500,000 | — | ||||||
Accrued expenses | 4,385,296 | 806,643 | ||||||
Non-redemption liability | 453,184 | — | ||||||
Total current liabilities | 5,426,676 | 894,839 | ||||||
Long-Term Liabilities | ||||||||
Deferred underwriting fee payable | 9,915,000 | 9,915,000 | ||||||
Deferred advisory fees payable | 2,974,500 | 2,974,500 | ||||||
Total long-term liabilities | 12,889,500 | 12,889,500 | ||||||
Total liabilities | 18,316,176 | 13,784,339 | ||||||
Commitments and Contingencies | ||||||||
Class A Ordinary Shares subject to possible redemption, 2,952,616 at $10.69 per share a t September 30, 2023 and 25,300,000 at $10.35 per share at December 31, 2022 | 31,535,094 | 261,900,213 | ||||||
Shareholders’ Deficit | ||||||||
Preference Shares; $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding at September 30, 2023 and December 31, 2022 | — | — | ||||||
Class A Ordinary Shares; $0.0001 par value; 500,000,000 shares authorized; 9,539,333 issued and outstanding (excluding 2,952,616 shares subject to possible redemption) as of September 30, 2023 and 1,106,000 issued and outstanding as of December 31, 2022 | 953 | 110 | ||||||
Class B Ordinary Shares; $0.0001 par value; 50,000,000 shares authorized; none issued and outstanding as of September 30, 2023 and 8,433,333 issued and outstanding as of December 31, 2022 | — | 843 | ||||||
Additional paid-in capital | 293,572 | — | ||||||
Accumulated deficit | (18,267,491 | ) | (10,229,221 | ) | ||||
Total Shareholders’ Deficit | (17,972,966 | ) | (10,228,268 | ) | ||||
Total Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Deficit | $ | 31,878,304 | $ | 265,456,284 | ||||
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Operating costs | ||||||||||||||||
General and administrative | $ | 2,346,328 | $ | 344,813 | $ | 2,978,760 | $ | 860,828 | ||||||||
Loss from operations | (2,346,328 | ) | (344,813 | ) | (2,978,760 | ) | (860,828 | ) | ||||||||
Other income (expense): | ||||||||||||||||
Interest income | 1,306,059 | 4 | 4,131,698 | 24 | ||||||||||||
Dividend income | 115,463 | 77,172 | 115,463 | 77,172 | ||||||||||||
Unrealized gain | — | 56,316 | — | 150,774 | ||||||||||||
Change in fair value of derivatives | (10,880 | ) | — | (10,880 | ) | — | ||||||||||
Net income (loss) | $ | (935,686 | ) | $ | (211,321 | ) | $ | 1,257,521 | $ | (632,858 | ) | |||||
Weighted average shares outstanding of Class A ordinary shares | 18,913,819 | 26,406,000 | 22,639,213 | 26,406,000 | ||||||||||||
Basic and diluted net income (loss) per Class A ordinary shares | $ | (0.04 | ) | $ | (0.01 | ) | $ | 0.04 | $ | (0.02 | ) | |||||
Weighted-average shares outstanding of Class B ordinary shares | 3,892,308 | 8,433,333 | 6,150,276 | 8,433,333 | ||||||||||||
Basic and diluted net income (loss) per Class B ordinary shares | $ | (0.04 | ) | $ | (0.01 | ) | $ | 0.04 | $ | (0.02 | ) |
Class A Ordinary Shares | Class B Ordinary Shares | Preference shares | ||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Additional paid in capital | Accumulated deficit | Total shareholders’ deficit | ||||||||||||||||||||||||||||
Balance – December 31, 2022 | 1,106,000 | $ | 110 | 8,433,333 | $ | 843 | — | $ | — | $ | — | $ | (10,229,221 | ) | $ | (10,228,268 | ) | |||||||||||||||||||
Net income | — | — | — | — | — | — | — | 2,193,207 | 2,193,207 | |||||||||||||||||||||||||||
Accretion of Class A Ordinary Shares Subject to redemption amount | — | — | — | — | — | — | — | (2,825,600 | ) | (2,825,600 | ) | |||||||||||||||||||||||||
Balance, March 31, 2023 (unaudited) | 1,106,000 | 110 | 8,433,333 | 843 | — | — | — | (10,861,614 | ) | (10,860,661 | ) | |||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | (935,686 | ) | (935,686 | ) | |||||||||||||||||||||||||
Reclassification of shares under Non-Redemption Agreements | — | — | — | — | — | — | 293,572 | — | 293,572 | |||||||||||||||||||||||||||
Conversion of ordinary shares | 8,433,333 | 843 | (8,433,333 | ) | (843 | ) | ||||||||||||||||||||||||||||||
Accretion of Class A Ordinary Shares Subject to redemption amount | — | — | — | — | — | — | — | (1,421,522 | ) | (1,421,522 | ) | |||||||||||||||||||||||||
Balance, June 30, 2023 (unaudited) | 9,539,333 | $ | 953 | — | $ | — | — | $ | — | 293,572 | $ | (13,218,822 | ) | $ | (12,924,297 | ) | ||||||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Operating costs | ||||||||||||||||
General and administrative | $ | 4,899,938 | $ | 258,008 | $ | 7,878,698 | $ | 1,118,836 | ||||||||
Loss from operations | 4,899,938 | 258,008 | 7,878,698 | 1,118,836 | ||||||||||||
Other income (expense): | ||||||||||||||||
Interest income | — | — | 4,131,698 | 24 | ||||||||||||
Dividend income | 402,845 | 675,390 | 518,308 | 752,562 | ||||||||||||
Unrealized gain | — | 724,985 | — | 875,759 | ||||||||||||
Change in fair value of derivatives | (148,731 | ) | — | (159,611 | ) | — | ||||||||||
Net income (loss) | $ | (4,645,824 | ) | $ | 1,142,367 | $ | (3,388,303 | ) | $ | 509,509 | ||||||
Weighted average shares outstanding of Class A ordinary shares | 12,491,949 | 26,406,000 | 19,219,622 | 26,406,000 | ||||||||||||
Basic and diluted net income (loss) per Class A ordinary shares | $ | (0.37 | ) | $ | 0.03 | $ | (0.15 | ) | $ | 0.01 | ||||||
Weighted-average shares outstanding of Class B ordinary shares | — | 8,433,333 | 4,077,656 | 8,433,333 | ||||||||||||
Basic and diluted net income (loss) per Class B ordinary shares | $ | 0.00 | $ | 0.03 | $ | (0.15 | ) | $ | 0.01 |
Class A Ordinary Shares | Class B Ordinary Shares | Preference shares | ||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Additional paid in capital | Accumulated deficit | Total shareholders’ deficit | ||||||||||||||||||||||||||||
Balance – December 31, 2021 | 1,106,000 | $ | 110 | 8,433,333 | $ | 843 | — | $ | — | $ | — | $ | (8,639,551 | ) | $ | (8,638,598 | ) | |||||||||||||||||||
Net loss | — | — | — | — | — | — | — | (421,537 | ) | (421,537 | ) | |||||||||||||||||||||||||
Balance, March 31, 2022 (unaudited) | 1,106,000 | 110 | 8,433,333 | 843 | — | — | — | (9,061,088 | ) | (9,060,135 | ) | |||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | (211,321 | ) | (211,321 | ) | |||||||||||||||||||||||||
Balance, June 30, 2022 (unaudited) | 1,106,000 | $ | 110 | 8,433,333 | $ | 843 | — | $ | — | $ | — | $ | (9,272,409 | ) | $ | (9,271,456 | ) | |||||||||||||||||||
Class A Ordinary Shares | Class B Ordinary Shares | Preference Shares | ||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Additional paid-in capital | Accumulated deficit | Total shareholders’ deficit | ||||||||||||||||||||||||||||
Balance – December 31, 2022 | 1,106,000 | $ | 110 | 8,433,333 | $ | 843 | — | $ | — | $ | — | $ | (10,229,221 | ) | $ | (10,228,268 | ) | |||||||||||||||||||
Net income | — | — | — | — | — | — | — | 2,193,207 | 2,193,207 | |||||||||||||||||||||||||||
Accretion of Class A Ordinary Shares Subject to redemption amount | — | — | — | — | — | — | — | (2,825,600 | ) | (2,825,600 | ) | |||||||||||||||||||||||||
Balance, March 31, 2023 (unaudited) | 1,106,000 | 110 | 8,433,333 | 843 | — | — | — | (10,861,614 | ) | (10,860,661 | ) | |||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | (935,686 | ) | (935,686 | ) | |||||||||||||||||||||||||
Reclassification of shares under Non-Redemption Agreements | — | — | — | — | — | — | 293,572 | — | 293,572 | |||||||||||||||||||||||||||
Conversion of ordinary shares | 8,433,333 | 843 | (8,433,333 | ) | (843 | ) | ||||||||||||||||||||||||||||||
Accretion of Class A Ordinary Shares Subject to redemption amount | — | — | — | — | — | — | — | (1,421,522 | ) | (1,421,522 | ) | |||||||||||||||||||||||||
Balance, June 30, 2023 (unaudited) | 9,539,333 | 953 | — | — | — | — | 293,572 | (13,218,822 | ) | (12,924,297 | ) | |||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | (4,645,824 | ) | (4,645,824 | ) | |||||||||||||||||||||||||
Accretion of Class A Ordinary Shares Subject to redemption amount | — | — | — | — | — | — | — | (402,845 | ) | (402,845 | ) | |||||||||||||||||||||||||
Balance, September 30, 2023 (unaudited) | 9,539,333 | $ | 953 | — | $ | — | — | $ | — | 293,572 | $ | (18,267,491 | ) | $ | (17,972,966 | ) |
Class A Ordinary Shares | Class B Ordinary Shares | Preference Shares | ||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Additional paid-in capital | Accumulated deficit | Total shareholders’ deficit | ||||||||||||||||||||||||||||
Balance – December 31, 2021 | 1,106,000 | $ | 110 | 8,433,333 | $ | 843 | — | $ | — | $ | — | $ | (8,639,551 | ) | $ | (8,638,598 | ) | |||||||||||||||||||
Net loss | — | — | — | — | — | — | — | (421,537 | ) | (421,537 | ) | |||||||||||||||||||||||||
Balance, March 31, 2022 (unaudited) | 1,106,000 | 110 | 8,433,333 | 843 | — | — | — | (9,061,088 | ) | (9,060,135 | ) | |||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | (211,321 | ) | (211,321 | ) | |||||||||||||||||||||||||
Balance, June 30, 2022 (unaudited) | 1,106,000 | 110 | 8,433,333 | 843 | — | — | — | (9,272,409 | ) | (9,271,456 | ) | |||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | 1,142,367 | 1,142,367 | |||||||||||||||||||||||||||
Accretion of Class A Ordinary Shares Subject to redemption amount | — | — | — | — | — | — | — | (1,528,360 | ) | (1,528,360 | ) | |||||||||||||||||||||||||
Balance, September 30, 2022 (unaudited) | 1,106,000 | $ | 110 | 8,433,333 | $ | 843 | — | $ | — | $ | — | $ | (9,658,402 | ) | $ | (9,657,449 | ) |
Nine Months Ended September 30, | ||||||||
2023 | 2022 | |||||||
Cash Flows from Operating Activities: | ||||||||
Net income (loss) | $ | (3,388,303 | ) | $ | 509,509 | |||
Adjustments to reconcile net income (loss) to net cash ( used in) provided by operating activities: | ||||||||
Interest and dividends earned on marketable securities held in Trust Account | (4,650,006 | ) | — | |||||
Unrealized gain on investments | — | (875,759 | ) | |||||
Change in fair value of derivatives | 159,611 | — | ||||||
Advisory Fee Reimbursement Write Off | 2,974,500 | |||||||
Non-redemption liability | 293,573 | — | ||||||
Changes in operating assets and liabilities: | ||||||||
Prepaid expenses | 65,816 | 243,245 | ||||||
Accrued expenses | 3,578,653 | 483,833 | ||||||
Due to affiliates | — | 12,998 | ||||||
Net cash (used in) provided by operating activities | (966,156 | ) | 373,826 | |||||
Cash Flows from Investing Activities: | ||||||||
Proceeds from sale of investments in Trust Account | — | 774,989,661 | ||||||
Purchase of investments in Trust Account | — | (775,742,223 | ) | |||||
Withdrawal from Trust Account upon redemption of 22,347,384 Class A ordinary shares | 235,015,086 | — | ||||||
Net cash provided by (used in) investing activities | 235,015,086 | (752,562 | ) | |||||
Cash Flows from Financing Activities: | ||||||||
Advance from Affiliates | 500,000 | — | ||||||
Reclassification of shares under non-redemption agreements | 293,572 | — | ||||||
Redemption of 22,347,384 Class A ordinary shares | (235,015,086 | ) | — | |||||
Net cash used in financing activities | (234,221,514 | ) | — | |||||
Net decrease in cash | (172,584 | ) | (378,736 | ) | ||||
Cash – Beginning of period | 268,199 | 881,842 | ||||||
Cash – End of period | $ | 95,615 | $ | 503,106 | ||||
Six Months Ended June 30, | ||||||||
2023 | 2022 | |||||||
Cash Flows from Operating Activities: | ||||||||
Net income (loss) | $ | 1,257,521 | $ | (632,858 | ) | |||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||
Interest and dividends earned on marketable securities held in Trust Account | (4,247,161 | ) | — | |||||
Unrealized gain on investments | — | (150,774 | ) | |||||
Change in fair value of derivatives | 10,880 | — | ||||||
Changes in operating assets and liabilities: | ||||||||
Prepaid expenses | (38,414 | ) | 142,328 | |||||
Accrued expenses | 2,092,635 | 466,742 | ||||||
Due to affiliates | — | 12,998 | ||||||
Non-redemption liability | 293,573 | — | ||||||
Net cash used in operating activities | (630,966 | ) | (161,564 | ) | ||||
Cash Flows from Investing Activities: | ||||||||
Divestment of cash in Trust Account | — | 258,060,000 | ||||||
Purchase of investments in Trust Account | — | (258,137,172 | ) | |||||
Withdrawal from Trust Account upon redemption of 22,347,384 Class A ordinary shares | 235,015,086 | — | ||||||
Net cash provided by (used in) investing activities | 235,015,086 | (77,172 | ) | |||||
Cash Flows from Financing Activities: | ||||||||
Advance from Sponsor | 108,333 | — | ||||||
Reclassification of shares under Non-redemption agreements | 293,572 | — | ||||||
Redemption of 22,347,384 Class A Ordinary Shares | (235,015,086 | ) | — | |||||
Net cash used in financing activities | (234,613,181 | ) | — | |||||
Net Change in Cash | (229,061 | ) | (238,736 | ) | ||||
Cash – Beginning of period | 268,199 | 881,842 | ||||||
Cash – Ending of period | $ | 39,138 | $ | 643,106 | ||||
Gross proceeds from IPO | $ | 253,000,000 | $ | 253,000,000 | ||||
Less: | ||||||||
Proceeds allocated to Public Warrants | (14,294,500 | ) | (14,294,500 | ) | ||||
Class A ordinary shares issuance costs | (14,451,363 | ) | (14,451,363 | ) | ||||
Plus: | ||||||||
Accretion of carrying value to redemption value for the year ended December 31, 2022 | 37,646,076 | 37,646,076 | ||||||
Class A ordinary shares subject to possible redemption at December 31, 2022 | 261,900,213 | |||||||
Class A ordinary shares subject to possible redemption as of December 31, 2022 | 261,900,213 | |||||||
Less: Class A ordinary shares redeemed from the Trust Account | (235,015,086 | ) | (235,015,086 | ) | ||||
Plus: | ||||||||
Accretion of carrying value to redemption value for the six months ended June 30, 2023 | 4,247,122 | |||||||
Class A ordinary shares subject to possible redemption at June 30, 2023 | $ | 31,132,249 | ||||||
Accretion of carrying value to redemption value for the nine months ended September 30, 2023 | 4,649,967 | |||||||
Class A ordinary shares subject to possible redemption as of September 30, 2023 | $ | 31,535,094 |
For the three months ended September 30, 2023 | For the three months ended September 30, 2022 | For the nine months ended September 30, 2023 | For the nine months ended September 30, 2022 | |||||||||||||||||||||||||||||
Basic and diluted net income (loss) per share: | ||||||||||||||||||||||||||||||||
Numerator: | Class A | Class B | Class A | Class B | Class A | Class B | Class A | Class B | ||||||||||||||||||||||||
Allocation of net income (loss) including carrying value to redemption | $ | (4,645,824 | ) | $ | — | $ | 865,842 | $ | 276,525 | $ | (2,795,258 | ) | $ | (593,045 | ) | $ | 386,175 | $ | 123,334 | |||||||||||||
Denominator: | ||||||||||||||||||||||||||||||||
Weighted average shares outstanding | 12,491,949 | — | 26,406,000 | 8,433,333 | 19,219,622 | 4,077,656 | 26,406,000 | 8,433,333 | ||||||||||||||||||||||||
Basic and diluted net income (loss) per share | $ | (0.37 | ) | $ | — | $ | 0.03 | $ | 0.03 | $ | (0.15 | ) | $ | (0.15 | ) | $ | 0.01 | $ | 0.01 |
For the three months ended June 30, 2023 | For the three months ended June 30, 2022 | For the six months ended June 30, 2023 | For the six months ended June 30, 2022 | |||||||||||||||||||||||||||||
Basic and diluted net income (loss) per share: | ||||||||||||||||||||||||||||||||
Numerator: | Class A | Class B | Class A | Class B | Class A | Class B | Class A | Class B | ||||||||||||||||||||||||
Allocation of net income (loss) including carrying value to redemption | $ | (775,993 | ) | $ | (159,693 | ) | $ | (160,168 | ) | $ | (51,513 | ) | $ | 988,878 | $ | 268,643 | $ | (479,666 | ) | $ | (153,192 | ) | ||||||||||
Denominator: | ||||||||||||||||||||||||||||||||
Weighted average shares outstanding | 18,913,819 | 3,892,308 | 26,406,000 | 8,433,333 | 22,639,213 | 6,150,276 | 26,406,000 | 8,433,333 | ||||||||||||||||||||||||
Basic and diluted net income (loss) per share | $ | (0.04 | ) | $ | (0.04 | ) | $ | (0.01 | ) | $ | (0.01 | ) | $ | 0.04 | $ | 0.04 | $ | (0.02 | ) | $ | (0.02 | ) |
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 an assessment of the assumptions that market participants would use in pricing the asset or liability. Transfers between fair value levels are recorded at the end of each reporting period. |
Description | Level | June 30, 2023 | Level | December 31, 2022 | Level | September 30, 2023 | Level | December 31, 2022 | ||||||||||||||||||||||||
Investments held in Trust Account – United States Treasury securities | — | 1 | $ | 261,998,590 | — | 1 | $ | 261,998,590 | ||||||||||||||||||||||||
Investments held in Trust Account – Treasury Trust Fund | 1 | $ | 31,232,249 | — | 1 | $ | 31,635,094 | — | ||||||||||||||||||||||||
Non-redemption agreement derivative liability | 3 | $ | 304,453 | — | ||||||||||||||||||||||||||||
Non-Redemption Agreement derivative liability | 3 | $ | 453,184 | — |
Input | June 30, 2023 | |||
Expected term (years) | .80 | |||
Probability of completion of a business combination | 5 | % | ||
Discount rate | 8.25 | % | ||
Fair value of the ordinary share price | $ | 10.48 |
Fair value as of January 1, 2023 | $ | — | ||
Issuance of Non-redemption Agreements | 587,145 | |||
Reclassification of Non-redemption Agreements to additional paid in capital | (293,572 | ) | ||
Change in fair value of derivative warrant liabilities | 10,880 | |||
Fair value as of June 30, 2023 | $ | 304,453 |
Input | September 30, 2023 | |||
Expected term (years) | 0.75 | |||
Probability of completion of a business combination | 10 | % | ||
Discount rate | 8.25 | % | ||
Fair value of the ordinary share price | $ | 10.69 |
Fair value as of January 1, 2023 | $ | — | ||
Issuance of Non-Redemption Agreements | 587,145 | |||
Reclassification of Non-Redemption Agreements to additional paid-in capital | (293,572 | ) | ||
Change in fair value of derivative non-redemption liabilities | 159,611 | |||
Fair value as of September 30, 2023 | $ | 453,184 |
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
References in this report (the “Quarterly Report”) to “we,” “us” or the “Company” refer to LAMF Global Ventures Corp. I. References to our “management” or our “management team” refer to our officers and directors, and references to the “Sponsor” refer to LAMF SPAC Holdings I LLC. The following discussion and analysis of the Company’s financial condition and results of operations should be read in conjunction with the consolidated financial statements and the notes thereto contained elsewhere in this Quarterly Report. Certain information contained in the discussion and analysis set forth below includes forward-looking statements that involve risks and uncertainties.
Special Note Regarding Forward-Looking Statements
This Quarterly Report includes “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act that are not historical facts, and involve risks and uncertainties that could cause actual results to differ materially from those expected and projected. All statements, other than statements of historical fact included in this Form 10-Q including, without limitation, statements in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” regarding the Company’s financial position, business strategy and the plans and objectives of management for future operations, are forward-looking statements. Words such as “expect,” “believe,” “anticipate,” “intend,” “estimate,” “seek” and variations and similar words and expressions are intended to identify such forward-looking statements. Such forward-looking statements relate to future events or future performance, but reflect management’s current beliefs, based on information currently available. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements. For information identifying important factors that could cause actual results to differ materially from those anticipated in the forward- lookingforward-looking statements, please refer to the Risk Factors section of the Company’s final prospectus for the IPO filed with the SEC. The Company’s securities filings can be accessed on the EDGAR section of the SEC’s website at www.sec.gov. Except as expressly required by applicable securities law, the Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
Overview
We are a blank check company incorporated as a Cayman Islands exempted company on July 20, 2021 for the purpose of effecting a Business Combination. We intend to effectuate an initial Business Combination using cash from the proceeds of the IPO and the Private Placement, our capital stock, debt or a combination of cash, stock and debt.
We expect to continue to incur significant costs in the pursuit of our acquisition plans. We cannot assure you that our plans to complete a Business Combination will be successful.
Proposed Business Combination
Business Combination Agreement
On August 17, 2023, the Company entered into a business combination agreement (the “Business Combination Agreement”) pursuant to which the Company will engage in a business combination transaction with Nuvo Group Ltd., a limited liability company organized under the State of Israel (“Nuvo”) (the “Nuvo Transaction”). The public company ultimately resulting from the completion of the Nuvo Transaction will be Holdco Nuvo Group D.G. Ltd., a limited liability company organized under the laws of the State of Israel (“Holdco”). Holdco will have two classes of shares outstanding at the closing of the Nuvo Transaction (the “Closing”): (i) ordinary shares, no par value (the “Holdco Ordinary Shares”); and (ii) preferred shares, no par value, (the “Holdco Preferred Shares”).The parties to the Business Combination Agreement are the Company, Nuvo, Holdco, Nuvo Assetco Corp., a Cayman Islands exempted company and a wholly owned subsidiary of Holdco, and H.F.N. Insight Merger Company Ltd., a limited liability company organized under the laws of the State of Israel and a wholly owned subsidiary of the Company (“Merger Sub”).
The Business Combination Agreement contemplates that the business combination among the Company, Nuvo, Holdco, Assetco and Merger Sub will be completed through the following series of transactions:
One day prior to the date of the Closing, the Company will be merged with and into Assetco (the “SPAC Merger”) and Assetco will continue as the surviving corporation (Assetco, in its capacity as the surviving entity of the SPAC Merger, the “SPAC Surviving Company”). Pursuant to the SPAC Merger, each Class A ordinary share issued and outstanding immediately prior to the effective time of the SPAC Merger will be automatically cancelled and converted into the right to receive one Holdco Ordinary Share.
After the SPAC Merger, on the date of the Closing, Merger Sub will be merged with and into Nuvo (the “Acquisition Merger”) and Nuvo will continue as the surviving corporation. Pursuant to the Acquisition Merger, (i) each of the ordinary shares of Nuvo, par value NIS 0.01 per share (the “Nuvo Shares”), issued and outstanding immediately prior to the effective time of the Acquisition Merger will be automatically cancelled and converted into the right to receive a number of Holdco Ordinary Shares, each valued at $10.20 per share, determined by dividing the Equity Value by the fully diluted share capital of Nuvo (the “Exchange Ratio”), (ii) each of the preferred shares of Nuvo, par value NIS 0.01 per share, issuable in connection with the Interim Financing (as defined below) (the “Company Crossover Preferred Shares”) issued and outstanding immediately prior to the effective time of the Acquisition Merger will be automatically cancelled and converted into the right to receive a number of Holdco Preferred Shares determined by the Exchange Ratio, (iii) each warrant for the purchase of Nuvo Shares issued and outstanding immediately prior to the effective time of the Acquisition Merger will be automatically cancelled and converted into the right to receive one warrant to purchase a number of Holdco Ordinary Shares determined by the Exchange Ratio, and (iv) each outstanding and unexercised option to purchase Nuvo Shares, whether or not then vested or fully exercisable, will be assumed by Holdco and converted into an option to purchase a number of Holdco Ordinary Shares as determined by the Exchange Ratio, in each case subject to the adjustments described in the Business Combination Agreement.
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Redemption Offer
Pursuant to its governing documents, the Company will be providing the holders of the Class A ordinary shares the right to redeem all or a portion of their Class A ordinary shares in connection with the vote to approve the Nuvo Transaction.
Financing
Interim Financing
Prior to the execution of the Business Combination Agreement, Nuvo and Holdco entered into securities purchase agreements (the “Interim Financing”) with certain investors (the “Interim Financing Investors”) pursuant to which (i) Nuvo has issued Company Crossover Preferred Shares to the Interim Financing Investors and (ii) upon and subject to the Closing, Holdco will issue 3,823,530 Holdco Ordinary Shares to the Interim Financing Investors, providing Nuvo with an aggregate of approximately $13,000,000 of gross proceeds as a result of the Interim Financing. Certain of the Interim Financing Investors are affiliated with the Company and the Sponsor and intend to invest an aggregate of $2,000,000 in the Interim Financing. These affiliates are: (i) Jeffrey Soros, LAMF’s Chairman, who intends to invest $500,000, (ii) Tamim Mourad, a strategic investor of LAMF and an affiliate of a member of the Sponsor, who intends to invest $500,000 and (iii) Gaingels 10X Capital Diversity Fund I, LP, a Delaware limited partnership and an affiliate of a member of the Sponsor, that intends to invest $1,000,000.
Equity Financing
The Business Combination Agreement provides that the parties may seek to obtain subscriptions for equity financing in connection with the consummation of the Nuvo Transaction as may be mutually agreed by the parties.
Shareholder Support Agreement
Concurrently with the execution of the Business Combination Agreement, the Company, Nuvo, Holdco and certain shareholders of Nuvo (the “Nuvo Shareholders”) entered into a shareholder support agreement (the “Shareholder Support Agreement”). Under the Shareholder Support Agreement, the Nuvo Shareholders agreed, among other things, to vote in favor of the adoption and approval of the Nuvo Transaction; be bound by certain other covenants and agreements related to the Nuvo Transaction; and be bound by certain transfer restrictions with respect to their Nuvo securities during the pendency of the Nuvo Transaction.
Sponsor Support Agreement
Concurrently with the execution of the Business Combination Agreement, the Company, Nuvo, Holdco, the Sponsor and the other Company insiders party thereto (the “Sponsor Parties”) entered into a sponsor support agreement (the “Sponsor Support Agreement”). Under the Sponsor Support Agreement, the Sponsor Parties agreed, among other things, to vote in favor of the adoption and approval of the Nuvo Transaction, be bound by certain other covenants and agreements related to the Business Combination; be bound by certain transfer restrictions with respect to their securities of the Company during the pendency of the Nuvo Transaction and not redeem any Class A ordinary shares in connection with the Nuvo Transaction.
Waiver of the Deferred Underwriting Commissions
On September 22, 2023, Wells Fargo Securities, the sole book-running manager of the IPO, solely with respect to the Nuvo Transaction, waived its entitlement to the payment of all of its $9,915,000 deferred underwriting commissions for its previously completed role as underwriter of the IPO that would have become due upon the consummation of the Nuvo Transaction, without any consideration.
Results of Operations
We have neither engaged in any operations (other than searching for a Business Combination after the IPO) nor generated any revenues to date. Our only activities from inception through JuneSeptember 30, 2023 were organizational activities, those necessary to prepare for the IPO, described below. We do not expect to generate any operating revenues until after the completion of our Business Combination. We expect to generate non-operating income in the form of interest income on marketable securities held after the IPO. We incur expenses as a result of being a public company (for legal, financial reporting, accounting and auditing compliance), as well as for due diligence expenses.
For the three months ended JuneSeptember 30, 2023, we had a net loss of $935,686,$4,645,824, which consisted of interest income of $1,306,059, dividend income of $115,463,$402,845, offset by general and administrative costs of $2,346,328$4,899,938 and change in the fair value of the derivative of $10,088.$148,731.
For the three months ended JuneSeptember 30, 2022, we had a net lossincome of $211,321,$1,142,367, which consisted of interest income of $4, dividend income of $77,172$675,390 and gains on investments held of $56,316,$724,985, offset by general and administrative costs of $344,813.$258,008.
For the sixnine months ended JuneSeptember 30, 2023, we had a net incomeloss of $1,257,521,$3,388,303, which consisted of interest andincome of $4,131,698, dividend income of $4,247,161,$518,308, offset by general and administrative costs of $2,978,760$7,878,698 and change in the fair value of the derivative of $10,880.$159,611.
For the sixnine months ended JuneSeptember 30, 2022, we had a net lossincome of $632,858,$509,509, which consisted of interest income of $24 dividend income of $77,172$752,562 and gains on investments held of $150,774,$875,759, offset by general and administrative costs of $860,828.$1,118,836.
Liquidity and Capital Resources
As of JuneSeptember 30, 2023, we had cash of $39,138$95,615 and working capital deficit of $3,109,297.$5,183,466.
On November 16, 2021, we consummated the IPO of 25,300,000 Units, which included the full exercise by the underwriters of their over-allotment option in the amount of 3,300,000 Units, at a price of $10.00 per Unit, generating gross proceeds of $253,000,000.
Simultaneously with the closing of the IPO, we consummated the sale of 1,106,000 Private Placement Units at a price of $10.00 per Private Placement Unit in a private placement to the Sponsor, generating gross proceeds of $11,060,000.
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Following the IPO, the full exercise of the over-allotment option, and the sale of the Private Placement Units, a total of $258,060,000 was placed in the Trust Account. We incurred $15,651,363 in transaction costs, including $4,000,000 of underwriting fees, $9,915,000 of deferred underwriting fees and $1,736,363 of other offering costs.
Following the IPO, the proceeds of $258,060,000 ($10.20 per Unit) from the sale of the Units in the IPO and the sale of the Private Placement Units were held in the Trust Account, which included the deferred underwriting commissions of $9,915,000, that were held in the Trust Account and were invested or had bore interest since February 3, 2022. Previously, the proceeds were held in cash. The proceeds are only invested only in U.S. government treasury obligations with a maturity of 185 days or less or in money market funds meeting certain conditions under Rule 2a-7 under the Investment Company Act which invest only in direct U.S. government treasury obligations. $503,106 are not held in the Trust Account.
We intend to use substantially all of the funds held in the Trust Account, including any amounts representing interest earned on the Trust Account to complete our Business Combination. We may withdraw interest to pay taxes. To the extent that our capital stock or debt is used, in whole or in part, as consideration to complete our Business Combination, 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.
We intend to use the funds held outside the Trust Account primarily to identify and evaluate target businesses, perform business due diligence on prospective target businesses, travel to and from the offices, plants or similar locations of prospective target businesses or their representatives or owners, review corporate documents and material agreements of prospective target businesses, and structure, negotiate and complete a Business Combination.
In order to fund working capital deficiencies or finance transaction costs in connection with a Business Combination, the Sponsor or an affiliate of the Sponsor or certain of our officers and directors may, but are not obligated to, loan us funds as may be required. If we complete a Business Combination, we may repay such loaned amounts out of the proceeds of the Trust Account released to us. In the event that a Business Combination 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 $1,200,000 of such loans may be convertible into units of the post-Business Combination entity at a price of $10.00 per unit, at the option of the lender. The units would be identical to the Private Placement Units.
We do not believe we will need to raise additional funds in order to meet the expenditures required for operating our business. However, if our estimate of the costs of identifying a target business, undertaking due diligence and negotiating a Business Combination are less than the actual amount necessary to do so, we may have insufficient funds available to operate our business prior to an initial Business Combination. Moreover, we may need to obtain additional financing either to complete an initial Business Combination or because we become obligated to redeem a significant number of the Public Shares upon consummation of an initial Business Combination, in which case we may issue additional securities or incur debt in connection with such Business Combination. Subject to compliance with applicable securities laws, we would only complete such financing simultaneously with the completion of our Business Combination. If we are unable to complete an initial Business Combination because we do not have sufficient funds available to us, we will be forced to cease operations and liquidate the Trust Account. In addition, following our Business Combination, if cash on hand is insufficient, we may need to obtain additional financing in order to meet our obligations.
On May 5 and May 8, 2023, the Company and the Sponsor entered into Non-Redemption Agreements with the Investors, pursuant to which the Investors have, in connection with the Extension, agreed not to redeem, or to reverse and revoke any prior redemption election with respect to an aggregate of 2,888,000 Public shares.Shares. Pursuant to the Non-Redemption Agreements, the Sponsor has agreed to transfer to the Investors (i) for the Initial Extension, a number of Founder Shares equal to 21% of the number of Non-Redeemed Shares, or 606,480 Founder Shares, and (ii) for each Additional Monthly Extension, a number of Founder Shares equal to 3.5% of the number of Non-Redeemed Shares, or 101,080 Founder Shares for each Additional Monthly Extension, or up to an aggregate of 1,212,960 Founder Shares if all Additional Monthly Extensions are implemented.
On May 11, 2023, at an extraordinary general meeting of shareholders of the Company, the Company’s shareholders approved an amendment to the Articles to provide the Company with the right to extend the date by which the Company must consummate a Business Combination to November 16, 2023 and to allow the Company, without another shareholder vote, by resolution of the Company’s board of directors, to elect to further extend the Extended Date in one-month increments up to six additional times up to May 16, 2024. On November 13, 2023 the board of directors of the Company elected to extend the Extended Date to December 16, 2023 through an Additional Monthly Extension. The Company’s shareholders also approved a proposal to amend the Articles to eliminate (i) the limitation that the Company may not redeem Public Shares in an amount that would cause the Company’s net tangible assets to be less than $5,000,001 and (ii) the limitation that the Company shall not consummate a Business Combination unless the Company has net tangible assets of at least $5,000,001 immediately prior to, or upon consummation of, or any greater net tangible asset or cash requirement that may be contained in the agreement relating to, such Business Combination. The Company’s shareholders also approved a proposal to provide for the right of a holder of the Founder Shares to convert such shares into Class A ordinary shares on a one-for-one basis at any time and from time to time prior to the closing of a Business Combination at the election of the holder. In connection with the vote to approve the Extension, the holders of 22,347,384 Public Shares properly exercised their right to redeem their Public Shares for cash at a redemption price of approximately $10.52 per share, for an aggregate redemption amount of approximately $235 million. After the satisfaction of such redemptions, the balance in the Company’s Trust Account is approximately $31 million.
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The Company’s operations following the closing of the Initial Public OfferingIPO have been funded by the portion of the proceeds from the sale of Private Placement Warrants not held in the Trust Account. The Company may raise additional capital through loans or additional investments from the Sponsor or the Sponsor’s members. The Sponsor is not obligated to loan the Company additional funds or make additional investments, but may do so from time to time to meet the Company’s working capital needs. Management has determined that if the Company is unable to complete a Business Combination during the Combination Period (as defined in Note 1), then the Company will cease all operations except for the purpose of liquidating. In connection with the Company’s assessment of going concern considerations in accordance with ASC 205-40, “Going Concern,” as of JuneSeptember 30, 2023, management has determined the liquidity condition, the date for mandatory liquidation and subsequent redemption of shares raises substantial doubt about the Company’s ability to continue as a going concern for a period of twelve months from the date of the issuance of these condensed consolidated financial statements. The Company intends to complete its initial Business Combination before the mandatory liquidation date; however, there can be no assurance that the Company will be able to consummate any Business Combination by NovemberDecember 16, 2023 (as may be further extended in accordance with the Extension). These unaudited condensed consolidated financial statements do not include any adjustments relating to the recovery of the recorded assets or the classification of the liabilities that might be necessary should the Company be unable to continue as going concern.
Off-Balance Sheet Arrangements
We did not have any off-balance sheet arrangements as of JuneSeptember 30, 2023 and December 31, 2022.
Contractual Obligations
We do not have any long-term debt, capital lease obligations, operating lease obligations or long-term liabilities, other than an agreement to pay the Sponsor (and/or its affiliates or designees) an aggregate of $20,000 per month for office space, secretarial and administrative services. We began incurring these fees on November 16, 2021 and will continue to incur these fees monthly until the earlier of the completion of the Business Combination and our liquidation.
The underwriters are entitled to deferred underwriting discounts of 2% of the gross proceeds of 2,000,000 Units, 3.5% of the gross proceeds of 22,000,000 Units, and 5.5% of the gross proceeds of all Units sold in the IPO ($9,915,000 in the aggregate) held in the Trust Account upon the completion of the initial Business Combination, subject to the terms of the underwriting agreement relating to the IPO.
In connection with the IPO, the Company engaged CCM, an affiliate of a passive member of the Sponsor, to provide consulting and advisory services in connection with the IPO, for which it received an advisory fee equal to 0.6% of the aggregate proceeds of the IPO. Affiliates of CCM have and manage investment vehicles with a passive investment in the Sponsor. Of such amount, $1,200,000 was paid at the closing of the IPO with the remainder deferred until the consummation of the Company’s initial Business Combination. Such amount was included in as part of the offering costs for the IPO. The underwriters of the IPO agreed to reimburse the Company for this cost; a total of $1,175,000 was received from the underwriters at the time of closing of the IPO, and an additional $25,000 was paid by the underwriters to cover legal fees that were part of the offering costs. An additional fee of 1.05% of the IPO proceeds is to be paid to CCM to serve as an advisor in connection with the Company’s initial Business Combination upon consummation of the Company’s initial Business Combination. All fees under this agreement are subject to reimbursement to the Company from the underwriters. Accordingly, a reimbursement receivable and deferred advisory fees payable of $2,794,500 have been reflected in the accompanying condensed balance sheets. At September 30, 2023, the Company recorded an allowance for credit loss of $2,974,500 as the reimbursement receivable was deemed uncollectible.
On September 22, 2023, Wells Fargo Securities, the sole book-running manager of the IPO, solely with respect to the Nuvo Transaction, waived its entitlement to the payment of all of its $9,915,000 deferred underwriting commissions for its previously completed role as underwriter of the IPO that would have become due upon the consummation of the Nuvo Transaction, without any consideration.
The holders of the Founder Shares, Private Placement Units, Private Placement Shares and Private Placement Warrants and the Class A ordinary shares underlying the Private Placement Warrants and Private Placement Units that may be issued upon conversion of the Working Capital Loans will have registration rights to require the Company to register a sale of any of the Company’s securities held by them pursuant to a registration rights agreement signed on the effective date of the IPO. The holders of these securities are entitled to make up to three demands, excluding short-form demands, that the Company register such securities. In addition, the holders have certain “piggy-back” registration rights with respect to registration statements filed subsequent to the completion of the initial Business Combination.
Critical Accounting Estimates
The preparation of condensed consolidated financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and income and expenses during the periods reported. Actual results could materially differ from those estimates. We have not identified any critical accounting policies.
Recent Accounting Standards
Management does not believe that any recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on our condensed consolidated financial statements.
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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
As of JuneSeptember 30, 2023, we were not subject to any market or interest rate risk. Following the consummation of the IPO, the net proceeds of the IPO was not invested or bore interest. After January 1, 2022, proceeds held in the Trust Account were invested only in U.S. government treasury obligations with a maturity of 185 days or less or in certain money market funds meeting certain conditions under Rule 2a-7 under the Investment Company Act which invest only in direct U.S. government treasury obligations. Due to the short-term nature of these investments, we believe there is no associated material exposure to interest rate risk.
ITEM 4. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
Disclosure controls and procedures are designed to ensure that information required to be disclosed by us in our Exchange Act reports is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our principal executive officer and principal financial officer or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.
Under the supervision and with the participation of our management, including our principal executive officer and principal financial and accounting officer, we conducted an evaluation of the effectiveness of our disclosure controls and procedures as of the quarter ended JuneSeptember 30, 2023, as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Based on this evaluation, our principal executive officer and principal financial and accounting officer have concluded that during the period covered by this report, our disclosure controls and procedures were effective at a reasonable assurance level and, accordingly, provided reasonable assurance that the information required to be disclosed by us in reports filed under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.
Changes in Internal Control over Financial Reporting
There was no change in our internal control over financial reporting that occurred during the most recent fiscal quarter covered by this Quarterly Report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
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PART II—OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS.
None.
ITEM 1A. RISK FACTORS.
Factors that could cause our actual results to differ materially from those in this Quarterly Report are any of the risks described in our Annual Report on Form 10-K for the year ended December 31, 2022 (the “2022 Annual Report on Form 10-K”) and in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2023 (the “2023 01Q1 Quarterly Report on Form 10-Q). Any of those factors could result in a significant or material adverse effect on our results of operations or financial condition. Additional risk factors not presently known to us or that we currently deem immaterial may also impair our business or results of operations.
In addition to the risks and uncertainties discussed in this Quarterly Report, including those disclosed in Part I, Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations, you should carefully consider the risks under the heading “Risk Factors” in Part I, Item 1A. Risk Factors in our 2022 Annual Report on Form 10-K and in Item 1A. Risk Factors in our 2023 Q1 Quarterly Report on Form 10-Q. These risks are not the only risks that we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may materially adversely affect our business, financial condition or results of operations.
2022
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.
On November 16, 2021, we consummated the IPO of 25,300,000 Units, inclusive of 3,300,000 Units sold to the underwriters upon the underwriters’ election to fully exercise their over-allotment option, at a price of $10.00 per Unit, generating total gross proceeds of $253,000,000. Wells Fargo Securities acted as sole book-running manager of the IPO. The securities in the IPO were registered under the Securities Act on a registration statement on Form S-1 (File Nos. 333-259998 and 333-260987). The SEC declared the registration statement effective on November 10, 2021.
Simultaneously with the consummation of the IPO and the full exercise of the over-allotment option, we consummated the private placement of an aggregate of 1,106,000 Private Placement Units at a price of $10.00 per Private Placement Unit, generating total proceed of $11,060,000. The issuance was made pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities Act.
The Private Placement Units are identical to the Units sold in the IPO except that the Private Placement Warrants are not transferable, assignable or salable until 30 days after the completion of a Business Combination, subject to certain limited exceptions.
Of the gross proceeds received from the IPO including the over-allotment option, and the sale of the Private Placement Units, $258,060,000 was placed in the Trust Account.
We paid a total of $4,000,000 in underwriting discounts and $2,195,098 for other offering costs related to the IPO. In addition, the underwriters agreed to defer $9,915,000 in underwriting discounts and commissions until the consummation of the initial Business Combination.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
None.
ITEM 4. MINE SAFETY DISCLOSURES.
Not Applicable.
ITEM 5. OTHER INFORMATION.
None.
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ITEM 6. EXHIBITS
The following exhibits are filed as part of, or incorporated by reference into, this Quarterly Report on Form 10-Q.
* | Filed herewith. |
** | Furnished. |
|
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
LAMF GLOBAL VENTURES CORP. I | ||||||
Date: | /s/ Morgan Earnest | |||||
Name: | Morgan Earnest | |||||
Title: | Chief Financial Officer | |||||
(Principal Financial and Accounting Officer) |
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