☒ | 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 | 001-40272 | 98-1578357 | ||||
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification Number) | ||||
200 Clarendon | 02116 | |||||
(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-fifth of one redeemable warrant | ACTDU | The Nasdaq Stock Market LLC | ||
Class A Ordinary Shares included as part of the units | ACTD | The Nasdaq Stock Market LLC | ||
Redeemable warrants | ACTDW | The Nasdaq Stock Market LLC | ||
units, each whole warrant exercisable for one Class A Ordinary Share at an exercise price of $11.50 |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☒ |
Page No. | ||||||
Item 1. | 1 | |||||
1 | ||||||
2 | ||||||
3 | ||||||
4 | ||||||
5 | ||||||
Item 2. | 19 | |||||
Item 3. | 23 | |||||
Item 4. | 23 | |||||
Item 1. | ||||||
Item 1A. | ||||||
Item 2. | 24 | |||||
Item 3. | 26 | |||||
Item 4. | Mine Safety Disclosures | 26 | ||||
Item 5. | Other Information | 26 | ||||
Item 6. | Exhibits | 26 | ||||
27 |
March 31, 2022 | December 31, 2021 | |||||||||||
Assets | (unaudited) | |||||||||||
Current assets: | ||||||||||||
Cash | $ | 1,092,857 | $ | 559,253 | $ | 811,526 | ||||||
Prepaid expenses | 1,041,828 | 738,743 | 701,663 | |||||||||
Total current assets | 2,134,685 | 1,297,996 | 1,513,189 | |||||||||
Other assets | 0 | 159,954 | ||||||||||
Investments held in Trust Account | 311,171,488 | 311,200,024 | 311,175,471 | |||||||||
Total Assets | $ | 313,306,173 | $ | 312,498,020 | $ | 312,848,614 | ||||||
Liabilities and Shareholders’ Deficit: | ||||||||||||
Current liabilities: | ||||||||||||
Accounts payable | $ | 200,000 | $ | 89,522 | $ | 18,764 | ||||||
Accrued expenses | 77,565 | 113,400 | 94,497 | |||||||||
Due to related party | 1,097 | 0 | ||||||||||
Total current liabilities | 277,565 | 204,019 | 113,261 | |||||||||
Deferred legal fees | 592,358 | 4,891,549 | 3,966,447 | |||||||||
Deferred underwriting commissions | 10,890,707 | 10,890,707 | 10,890,707 | |||||||||
Derivative warrant liabilities | 16,991,180 | 20,543,880 | 25,795,700 | |||||||||
Total liabilities | 28,751,810 | 36,530,155 | 40,766,115 | |||||||||
Commitments and Contingencies | 0 | 0 | 0 | |||||||||
Class A ordinary shares subject to possible redemption; 31,116,305 shares at redemption value of $10.00 | 311,163,050 | |||||||||||
S hareholders’D eficit: | ||||||||||||
Preference shares, $0.0001 par value; 5,000,000 shares authorized; NaN issued and outstanding | 0 | |||||||||||
Class A ordinary shares, $0.0001 par value; 500,000,000 shares authorized (excluding 31,116,305 shares subject to possible redemption) | 0 | |||||||||||
Class B ordinary shares, $0.0001 par value; 50,000,000 shares authorized; 7,779,076 shares issued and outstanding | 778 | |||||||||||
Additional paid-in capital | 0 | |||||||||||
Class A ordinary shares subject to possible redemption; 31,116,305 shares at redemption value of $10.00 at March 31, 2022 and December 31, 2021 | 311,163,050 | 311,163,050 | ||||||||||
Shareholders’ Deficit: | ||||||||||||
Preference shares, $ 0.0001 par value; 5,000,000 shares authorized; 0ne issued and outstanding | 0 | 0 | ||||||||||
Class A ordinary shares, $0.0001 par value; 500,000,000 shares authorized (excluding 31,116,305 shares subject to possible redemption) at March 31, 2022 and December 31, 2021 | 0 | 0 | ||||||||||
Class B ordinary shares, $0.0001 par value; 50,000,000 shares authorized; 7,779,076 shares issued and outstanding at March 31, 2022 and December 31, 2021 | 778 | 778 | ||||||||||
Accumulated deficit | (26,609,465 | ) | (35,195,963 | ) | (39,081,329 | ) | ||||||
Total shareholders’ deficit | (26,608,687 | ) | (35,195,185 | ) | (39,080,551 | ) | ||||||
Total Liabilities and Shareholders’ Deficit | $ | 313,306,173 | $ | 312,498,020 | $ | 312,848,614 | ||||||
For the three months ended March 31, 2022 | For the period January 13, 2021 (inception) through March 31, 2021 | |||||||
General and administrative expenses | $ | 1,391,007 | $ | 128,476 | ||||
Loss from operations | (1,391,007 | ) | (128,476 | ) | ||||
Other income (expense) | ||||||||
Change in fair value of derivative warrant liabilities | 5,251,820 | 271,160 | ||||||
Financing costs - warrant liabilities | 0 | (462,620 | ) | |||||
Net gain on investments held in Trust Account | 24,553 | 153 | ||||||
Total other income (expense) | 5,276,373 | (191,307 | ) | |||||
Net income (loss) | $ | 3,885,366 | $ | (319,783 | ) | |||
Weighted average shares outstanding of Class A ordinary shares, basic and diluted | 31,116,305 | 3,067,805 | ||||||
Basic and diluted net income (loss) per ordinary share | $ | 0.10 | $ | (0.03 | ) | |||
Weighted average shares outstanding of Class B ordinary shares, basic and diluted | 7,779,076 | 6,964,134 | ||||||
Basic and diluted net income (loss) per ordinary share | $ | 0.10 | $ | (0.03 | ) | |||
For the three months ended September 30, 2021 | For the period January 13, 2021 (inception) through September 30, 2021 | |||||||
General and administrative expenses | $ | 750,307 | $ | 1,273,196 | ||||
Loss from operations | (750,307 | ) | (1,273,196 | ) | ||||
Other income (expense) | ||||||||
Change in fair value of derivative warrant liabilities | 8,958,980 | (1,995,420 | ) | |||||
Financing costs - warrant liabilities | 0 | (462,620 | ) | |||||
Net gain on investments held in Trust Account | 3,981 | 8,438 | ||||||
Total other income (expense) | 8,962,961 | (2,449,602 | ) | |||||
Net loss | $ | 8,212,654 | $ | (3,722,798 | ) | |||
Weighted average shares outstanding of Class A common stock, basic and diluted | 31,116,305 | 23,275,976 | ||||||
Basic and diluted net Income (loss) per ordinary share | $ | 0.21 | $ | (0.12 | ) | |||
Weighted average shares outstanding of Class B common stock, basic and diluted | 7,779,076 | 7,551,277 | ||||||
Basic and diluted net Income (loss) per ordinary share | $ | 0.21 | $ | (0.12 | ) | |||
Ordinary Shares | Additional | Total | ||||||||||||||||||
Class B | Paid-in | Accumulated | Shareholders’ | |||||||||||||||||
Shares | Amount | Capital | Deficit | Deficit | ||||||||||||||||
Balance—January 13, 2021 (inception) | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||||
Issuance of Class B ordinary shares to Sponsor | 7,906,250 | 791 | 24,209 | — | 25,000 | |||||||||||||||
Accretion on Class A ordinary shares subject to possible redemption | — | — | (199,953 | ) | (22,886,667 | ) | (23,086,620 | ) | ||||||||||||
Sale of private placement warrants to Sponsor less fair value of private warrants | 175,731 | 175,731 | ||||||||||||||||||
Forfeiture of Class B ordinary shares from Sponsor | (127,174 | ) | (13 | ) | 13 | — | — | |||||||||||||
Net loss | — | — | — | (319,783 | ) | (319,783 | ) | |||||||||||||
Balance—March 31, 2021 (unaudited) | 7,779,076 | $ | 778 | $ | — | $ | (23,206,450 | ) | $ | (23,205,672 | ) | |||||||||
Net loss | — | — | — | (11,615,669 | ) | (11,615,669 | ) | |||||||||||||
Balance—June 30, 2021 (unaudited) | 7,779,076 | $ | 778 | $ | — | $ | (34,822,119 | ) | $ | (34,821,341 | ) | |||||||||
Net loss | — | — | — | 8,212,654 | 8,212,654 | |||||||||||||||
Balance—September 30, 2021 (unaudited) | 7,779,076 | $ | 778 | $ | — | $ | (26,609,465 | ) | $ | (26,608,687 | ) | |||||||||
For The Three Months Ended March 31, 2022 | ||||||||||||||||||||||||||||
Ordinary Shares | Additional | Total | ||||||||||||||||||||||||||
Class A | Class B | Paid-in | Accumulated | Shareholders’ | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Deficit | Deficit | ||||||||||||||||||||||
Balance - January 1, 2022 | 0 | $ | 0 | 7,779,076 | $ | 778 | $ | 0 | $ | (39,081,329 | ) | $ | (39,080,551 | ) | ||||||||||||||
Net income | — | — | — | — | — | 3,885,366 | 3,885,366 | |||||||||||||||||||||
Balance - March 31, 2022 (unaudited) | 0 | $ | 0 | 7,779,076 | $ | 778 | $ | 0 | $ | (35,195,963 | ) | $ | (35,195,185 | ) | ||||||||||||||
For The Period From January 13, 2021 (inception) through March 31, 2021 | ||||||||||||||||||||||||||||
Ordinary Shares | Additional | Total | ||||||||||||||||||||||||||
Class A | Class B | Paid-in | Accumulated | Shareholders’ | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Deficit | Deficit | ||||||||||||||||||||||
Balance - January 13, 2021 (inception) | 0 | $ | 0 | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||
Issuance of Class B ordinary shares to Sponsor | 0 | 0 | 7,906,250 | 791 | 24,209 | — | 25,000 | |||||||||||||||||||||
Accrection on Class A ordinary shares subject to possible redemption | — | — | — | — | (199,953 | ) | (22,886,667 | ) | (23,086,620 | ) | ||||||||||||||||||
Sale of private placement warrants to Sponsor less fair value of private warrants | — | — | — | — | 175,731 | — | 175,731 | |||||||||||||||||||||
Forfeiture of Class B ordinary shares from Sponsor | 0 | 0 | (127,174 | ) | (13 | ) | 13 | — | — | |||||||||||||||||||
Net loss | — | — | — | — | — | (319,783 | ) | (319,783 | ) | |||||||||||||||||||
Balance - March 31, 2021 (unaudited) | 0 | $ | 0 | 7,779,076 | $ | 778 | $ | 0 | $ | (23,206,450 | ) | $ | (23,205,672 | ) | ||||||||||||||
For the three months ended March 31, 2022 | For the period January 13, 2021 (inception) through March 31, 2021 | |||||||||||
Cash Flows from Operating Activities: | ||||||||||||
Net loss | $ | (3,722,798 | ) | |||||||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||
Net income (loss) | $ | 3,885,366 | $ | (319,783 | ) | |||||||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||||||
General and administrative expenses paid by related party in exchange for issuance of Class B ordinary shares | 25,000 | 0 | 25,000 | |||||||||
General and administrative expenses paid by related party under promissory note | 26,800 | 0 | 26,800 | |||||||||
Change in fair value of derivative warrant liabilities | 1,995,420 | (5,251,820 | ) | (271,160 | ) | |||||||
Financing costs—warrant liabilities | 462,620 | |||||||||||
Financing costs - warrant liabilities | 0 | 462,620 | ||||||||||
Net gain on investments held in Trust Account | (8,438 | ) | (24,553 | ) | (153 | ) | ||||||
Changes in operating assets and liabilities: | ||||||||||||
Prepaid expenses | (1,041,828 | ) | 122,874 | (1,409,464 | ) | |||||||
Accounts payable | 70,758 | 1,442,343 | ||||||||||
Accrued expenses | 7,565 | 18,903 | 23,534 | |||||||||
Accrued expenses - related party | 1,097 | 10,000 | ||||||||||
Deferred legal fees | 592,358 | 925,102 | 0 | |||||||||
Net cash used in operating activities | (1,663,301 | ) | (252,273 | ) | (10,263 | ) | ||||||
Cash Flows from Investing Activities: | ||||||||||||
Cash deposited in Trust Account | (311,163,050 | ) | 0 | (311,163,050 | ) | |||||||
Net cash used in investing activities | (311,163,050 | ) | 0 | (311,163,050 | ) | |||||||
Cash Flows from Financing Activities: | ||||||||||||
Proceeds from note payable to related party | 100 | 0 | 100 | |||||||||
Repayment of note payable to related party | (171,742 | ) | 0 | (171,742 | ) | |||||||
Proceeds received from initial public offering | 311,163,050 | 0 | 311,163,050 | |||||||||
Proceeds received from private placement | 9,223,261 | 0 | 9,223,261 | |||||||||
Offering costs paid | (6,295,461 | ) | 0 | (6,243,461 | ) | |||||||
Net cash provided by financing activities | 313,919,208 | 0 | 313,971,208 | |||||||||
Net increase in cash | 1,092,857 | |||||||||||
Cash—beginning of the period | 0 | |||||||||||
Net (decrease) increase in cash | (252,273 | ) | 2,797,895 | |||||||||
Cash - beginning of the period | 811,526 | 0 | ||||||||||
Cash—end of the period | $ | 1,092,857 | $ | 559,253 | $ | 2,797,895 | ||||||
Supplemental disclosure of noncash investing and financing activities: | ||||||||||||
Offering costs included in accounts payable | $ | 200,000 | $ | 0 | $ | 252,000 | ||||||
Offering costs included in accrued expenses | $ | 70,000 | $ | 0 | $ | 70,000 | ||||||
Offering costs paid by related party under promissory note | $ | 144,842 | $ | 0 | $ | 144,842 | ||||||
Deferred underwriting commissions | $ | 10,890,707 | $ | 0 | $ | 10,890,707 | ||||||
Forfeiture of Class B ordinary shares from Sponsor | $ | 13 | $ | 0 | $ | 13 |
For the period January 13, 2021 | ||||||||||||||||
For the Three Months Ended | (inception) through September 30, | |||||||||||||||
September 30, 2021 | 2021 | |||||||||||||||
Class A | Class B | Class A | Class B | |||||||||||||
Basic and diluted net income (loss) per common share: | ||||||||||||||||
Numerator: | ||||||||||||||||
Allocation of net income (loss) | $ | 6,570,123 | $ | 1,642,531 | $ | (2,810,882 | ) | $ | (911,916 | ) | ||||||
Denominator: | ||||||||||||||||
Basic and diluted weighted average common shares outstanding | 31,116,305 | 7,779,076 | 23,275,976 | 7,551,277 | ||||||||||||
Basic and diluted net income (loss) per common share | $ | 0.21 | $ | 0.21 | $ | (0.12 | ) | $ | (0.12 | ) | ||||||
For the three months ended March 31, 2022 | For the period January 13, 2021 (inception) through March 31, 2021 | |||||||||||||||
Class A | Class B | Class A | Class B | |||||||||||||
Basic and diluted net (loss) per ordinary share: | ||||||||||||||||
Numerator: | ||||||||||||||||
Allocation of net income (loss) | $ | 3,108,293 | $ | 777,073 | $ | (97,791 | ) | $ | (221,992 | ) | ||||||
Denominator: | ||||||||||||||||
Basic and diluted weighted average ordinary shares outstanding | 31,116,305 | 7,779,076 | 3,067,805 | 6,964,134 | ||||||||||||
Basic and diluted net income (loss) per ordinary share | $ | 0.10 | $ | 0.10 | $ | (0.03 | ) | $ | (0.03 | ) | ||||||
Gross Proceeds | $ | 311,163,050 | $ | 311,163,050 | ||||
Less: | — | |||||||
Offering costs allocated to Class A shares subject to possible redemption | (17,138,390 | ) | (17,138,390 | ) | ||||
Proceeds allocated to Public Warrants at issuance | (5,948,230 | ) | (5,948,230 | ) | ||||
Plus: | ||||||||
Accretion on Class A ordinary shares subject to possible redemption amount | 22,086,620 | |||||||
Re-measurement on Class A ordinary shares subject to possible redemption amount | 23,086,620 | |||||||
Class A ordinary shares subject to possible redemption | $ | 311,163,050 | $ | 311,163,050 | ||||
Description | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | |||||||||
Assets: | ||||||||||||
Investments held in Trust Account | $ | 311,200,024 | $ | — | $ | — | ||||||
Liabilities: | ||||||||||||
Derivative warrant liabilities-public | $ | 8,276,940 | $ | — | $ | — | ||||||
Derivative warrant liabilities-private | $ | — | $ | — | $ | 12,266,940 |
Quoted | ||||||||||||||||||||||||
Prices | Significant | Significant | ||||||||||||||||||||||
in | Other | Other | ||||||||||||||||||||||
Active | Observable | Unobservable | ||||||||||||||||||||||
Markets | Inputs | Inputs | ||||||||||||||||||||||
Description | (Level 1) | (Level 2) | (Level 3) | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | ||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Investments held in Trust Account | $ | 311,171,488 | $ | — | $ | — | $ | 311,175,471 | $ | — | $ | — | ||||||||||||
Liabilities: | ||||||||||||||||||||||||
Derivative warrant liabilities-public | $ | 6,845,590 | $ | — | $ | — | $ | 10,392,850 | $ | — | $ | — | ||||||||||||
Derivative warrant liabilities-private | $ | — | $ | — | $ | 10,145,590 | $ | — | $ | — | $ | 15,402,850 |
March 22, | September | |||||||||||||||
2021 | 30, 2021 | March 31, 2022 | December 31, 2021 | |||||||||||||
Share price | $ | 9.81 | $ | 9.76 | $ | 9.92 | $ | 9.98 | ||||||||
Volatility | 14.3 | % | 15.5 | % | 16.3 | % | 21.8 | % | ||||||||
Expected life of the options to convert | 6.53 | 6.00 | 5.25 | 5.50 | ||||||||||||
Risk-free rate | 1.2 | % | 1.1 | % | 2.4 | % | 1.3 | % | ||||||||
Dividend yield | 0 | 0 | 0 | 0 |
Public | Private | Total | Public Warrants | Private Warrants | Total | |||||||||||||||||||
Derivative warrant liabilities at January 13, 2021 (inception) | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||
Issuance of Public and Private Warrants | 5,948,230 | 9,047,530 | 14,995,760 | 5,948,230 | 9,047,530 | 14,995,760 | ||||||||||||||||||
Transfer to Level 1 | (10,455,080 | ) | 0 | (10,455,080 | ) | |||||||||||||||||||
Change in fair value of derivative warrant liabilities | (146,580 | ) | (124,580 | ) | (271,160 | ) | 4,506,850 | 6,355,320 | 10,862,170 | |||||||||||||||
Derivative warrant liabilities at March 31, 2021 | 5,801,650 | 8,922,950 | 14,724,600 | |||||||||||||||||||||
Change in fair value of derivative warrant liabilities | 4,653,430 | 6,572,130 | 11,225,560 | |||||||||||||||||||||
Transfer to Level 1 | (10,455,080 | ) | 0 | (10,455,080 | ) | |||||||||||||||||||
Derivative warrant liabilities at June 30, 2021 | 0 | 15,495,080 | 15,495,080 | |||||||||||||||||||||
Derivative warrant liabilities at December 31, 2021 | 0 | 15,402,850 | 15,402,850 | |||||||||||||||||||||
Change in fair value of derivative warrant liabilities | 0 | (5,349,490 | ) | (5,349,490 | ) | 0 | (3,135,910 | ) | (3,135,910 | ) | ||||||||||||||
Derivative warrant liabilities at September 30, 2021 | $ | 0 | $ | 10,145,590 | $ | 10,145,590 | ||||||||||||||||||
Derivative warrant liabilities at March 31, 2022 | $ | 0 | $ | 12,266,940 | $ | 12,266,940 | ||||||||||||||||||
ARCLIGHT CLEAN TRANSITION CORP. II | ||||
By: | /s/ John F. Erhard | |||
Name: | John F. Erhard | |||
Title: | Chief Executive Officer |