Cayman Islands | | | 6770 | | | N/A |
(State or Other Jurisdiction of Incorporation or Organization) | | | (Primary Standard Industrial Classification Code Number) | | | (I.R.S. Employer Identification Number) |
Derek J. Dostal | | | William E. Doran |
Leonard Kreynin | | | Sarah M. Hesse |
Davis Polk & Wardwell LLP | | | Benesch, Friedlander, Coplan & Aronoff LLP |
450 Lexington Avenue | | | 71 South Wacker Drive, Suite 1600 |
New York, New York 10017 | | | Chicago, Illinois 60606 |
Telephone: (212) 450-4000 | | | Telephone: (312) 212-4949 |
Large accelerated filer | | | ☐ | | | Accelerated filer | | | ☐ |
Non-accelerated filer | | | ☒ | | | Smaller reporting company | | | ☒ |
Emerging Growth Company | | | ☒ | | | | |
1. | The Business Combination Proposal – To consider and vote upon a proposal to approve the transactions contemplated by the amended and restated agreement and plan of merger, dated as of April 14, 2022, as amended by Amendment No. 1, dated as of May 4, 2022 (as it may be further amended or modified from time to time, the “merger agreement”), by and among Tuatara, HighJump Merger Sub, Inc., a Delaware corporation and a wholly owned direct subsidiary of Tuatara (“Merger Sub”) and SpringBig, Inc., a Delaware corporation (“SpringBig”), pursuant to which Merger Sub will be merged with and into SpringBig, whereupon the separate corporate existence of Merger Sub will cease and SpringBig will be the surviving company and continue in existence as a subsidiary of New SpringBig (as defined below), on the terms and subject to the conditions set forth therein (the “business combination” and such proposal, the “Business Combination Proposal”). A copy of the merger agreement is attached to the accompanying proxy statement/prospectus as Annex A; |
2. | The Nasdaq Proposal – To consider and vote upon a proposal to approve, for purposes of complying with applicable listing rules of The Nasdaq Stock Market LLC (the “Nasdaq”), the issuance by New SpringBig (as defined below) of shares of common stock, par value $0.0001 per share, to (i) certain accredited investors, in each case in a private placement, the proceeds of which will be used to finance the business combination and related transactions and the costs and expenses incurred in connection therewith and (ii) to stockholders of SpringBig (the “Nasdaq Proposal”); |
3. | The Domestication Proposal – To consider and vote upon a proposal to approve by special resolution the change of Tuatara’s jurisdiction of incorporation from the Cayman Islands to the State of Delaware by deregistering as an exempted company in the Cayman Islands and domesticating and continuing as a corporation incorporated under the laws of the State of Delaware (the “domestication” and such proposal, the “Domestication Proposal”); |
4. | The Organizational Documents Proposals – To consider and vote upon six separate proposals (collectively, the “Organizational Documents Proposals”) to approve, by special resolution, material differences between the existing amended and restated memorandum and articles of association of Tuatara (the “existing organizational documents”) and the proposed new certificate of incorporation (the “proposed charter”) and bylaws (the “proposed bylaws,” and, together with the proposed charter, the “proposed organizational documents”) of Tuatara following its domestication as a Delaware corporation (the post-domestication entity, “New SpringBig”); |
5. | The Articles Amendment Proposal – To consider and vote upon a proposal to approve by special resolution the amendment of Tuatara’s existing organizational documents (the “Articles Amendment Proposal”); |
6. | The Notes and Warrants Proposal – To consider and vote upon a proposal to approve, for purposes of satisfying conditions to closing the transactions contemplated by the securities purchase agreement, dated as of April 29, 2022, by and between Tuatara and certain institutional investors, the issuance by New SpringBig of convertible notes, warrants and the underlying common stock of such convertible notes and warrants upon their conversion or exercise, as applicable (the “Notes and Warrants Proposal”); |
7. | The Director Election Proposal – For the holders of Class B ordinary shares to consider and vote upon a proposal to elect Sergey Sherman, Jeffrey Harris, Phil Schwarz, Jon Trauben, Steven Bernstein, Patricia Glassford and Amanda Lannert, in each case, to serve as directors until their respective successors are duly elected and qualified, or until their earlier death, resignation or removal (the “Director Election Proposal”); |
8. | The Incentive Plan Proposal – To consider and vote upon a proposal to approve the 2022 Incentive Plan (the “Incentive Plan Proposal”); and |
9. | The Adjournment Proposal – To consider and vote upon a proposal to approve the adjournment of the general meeting to a later date or dates, if necessary or appropriate, to permit further solicitation and vote of proxies in the event that there are insufficient votes for, or otherwise in connection with, the approval of the Business Combination Proposal, the Nasdaq Proposal, the Domestication Proposal, the Organizational Documents Proposals, the Articles Amendment Proposal or the Incentive Plan Proposal (the “Adjournment Proposal” and, together with the Business Combination Proposal, the Nasdaq Proposal, the Domestication Proposal, the Organizational Documents Proposals, the Articles Amendment Proposal, the Notes and Warrants Proposal, the Director Election Proposal, Incentive Plan Proposal and the Notes and Warrants Proposal, collectively, the “Transaction Proposals”). |
| | By Order of the Board of Directors, | |
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| | Albert Foreman | |
| | Chief Executive Officer |
○ | SpringBig’s platform offers retailers text message marketing, which allows clients to send promotions to existing customers. This text messaging platform offers a variety of features, including multiple customer segmentations, which automatically groups customers into segments based on their preferences and purchase behavior. Retailers also have access to the “autoconnects” feature, which allows them to easily leverage customer data and send messages directly to consumers based on certain actions and also includes functionality to help clients identify opportunities to send text messages. SpringBig also provides an e-signature app, designed to accommodate proper ‘double opt-in’ procedure, through both implied and expressed consent to facilitate compliance with the TCPA, FCC, and Canadian CRTC. |
○ | The consumer application (or wallet) offered by SpringBig allows customers to access and check their points, redeem rewards, and view upcoming offers. The wallet fully integrates with cannabis e-commerce providers, allowing customers to place orders directly from their wallet. Retailers can customize this application with a distinct icon, name, layout, and color scheme, thus allowing for brand consistency and a higher-quality and frictionless customer experience. |
○ | Retailers can use the SpringBig platform to compile marketing campaigns based on consumer profiles and preferences. Once a campaign launches, retailers are able to analyze in-depth data in order to measure campaign success. ERP-level customer data management and analysis also allow retailers to organize their sales funnel and provide a personalized, targeted approach to marketing campaigns. |
○ | SpringBig’s platform integrates with many point of sale (“POS”) systems used in the cannabis industry, allowing retailers to automatically collect additional data on consumers. |
○ | SpringBig has a brand marketing platform that offers a direct-to-consumer marketing automation platform specifically for cannabis brands. This direct-to-consumer marketing engine allows brands to target and measure the complete transaction cycle from initial engagement through point of sale. |
○ | SpringBig provides brands with the opportunity to provide content that, in turn, SpringBig’s retail clients can utilize in their targeted consumer marketing campaigns. This provides the brand with access to the consumer and that can be leveraged through the brand and retailer cooperating in a promotional campaign on the SpringBig platform. The SpringBig platform can be used by brands to increase their brand awareness, expand retail partnerships, and acquire and retain new customers. The SpringBig brands platform also provides brand clients with access to detailed reports regarding campaign attribution metrics. |
• | In addition, there are currently 16,000,000 warrants of Tuatara outstanding, consisting of 10,000,000 public warrants and 6,000,000 private placement warrants. Each whole warrant entitles the holder to purchase one ordinary share for $11.50 per share. The warrants will become exercisable 30 days after the completion of the business combination and will expire five years after the completion of the business combination or earlier upon redemption or liquidation. Once the warrants become exercisable, Tuatara may redeem the outstanding warrants (other than the private placement warrants) in whole and not in part, (i) at a price of $0.01 per warrant, if the last sale price of our ordinary shares equals or exceeds $18.00 per share (as adjusted for share splits, share dividends, rights issuances, subdivisions, reorganizations, recapitalizations and the like) for any 20 trading days within a 30 trading day period ending on the third trading day before Tuatara sends the notice of redemption to the warrant holders or (ii) at a price of $0.10 per warrant, if the last sale price of our ordinary shares equals or exceeds $10.00 over the same trading day period, and in either case warrant holders may exercise their warrants in advance of the related redemption date, which in the case of clause (ii) will involve any exercises being cashless exercised where the number of shares deliverable upon exercise will be based on a table as described under the heading “Description of Securities.” Our current stock price is close to the $10.00 per share price that could trigger the ability of New SpringBig to call the warrants for redemption at a redemption price of $0.10 per warrant. In that case, warrant holders would have their warrants redeemed for $0.10 per warrant, which may be significantly below the then-prevailing market price of the warrants, unless the warrant holder (i) exercises its warrants in advance of the redemption date pursuant to the table as described under the heading “Description of Securities” or (ii) sells its warrants at the then-current market price when it might otherwise wish to hold its warrants. See “Risk Factors – Risks Related to Tuatara and the Business Combination – We may redeem unexpired warrants prior to their exercise at a time that is disadvantageous to warrant holders, thereby making their warrants worthless.” The private placement warrants, however, are non-redeemable so long as our sponsor or its permitted transferees holds them, except in the case of our redemption pursuant to clause (ii) described above. |
○ | The public shareholders would own 21,000,000 shares of common stock, representing 44.9% of New SpringBig’s total outstanding shares of common stock; |
○ | The subscription investors would own 1,310,000 shares of common stock, representing 2.8% of New SpringBig’s total outstanding shares of common stock; |
○ | Our sponsor and affiliates of our sponsor would own 3,600,000 shares of common stock (including 600,000 shares received pursuant to the PIPE subscription financing), representing 7.7% of New SpringBig’s total outstanding shares of common stock; |
○ | Our officers and directors (including directors nominated for election at the general meeting) would own 5,896,666 shares of common stock, representing 12.6% of New SpringBig’s total outstanding shares of common stock; and |
○ | The SpringBig equity holders would own 21,500,000 shares of common stock, representing 45.9% of New SpringBig’s total outstanding shares of common stock. |
○ | approval, for purposes of complying with applicable listing rules of Nasdaq, the issuance by New SpringBig of common stock to certain accredited investors pursuant to the subscription agreements of Tuatara; |
○ | approval by special resolution of the change of Tuatara’s jurisdiction of incorporation from the Cayman Islands to the State of Delaware by deregistering as an exempted company in the Cayman Islands and domesticating and continuing as a corporation incorporated under the laws of the State of Delaware; |
○ | approval by special resolution of six separate proposals with respect to material differences between the existing organizational documents of Tuatara and the proposed organizational documents of New SpringBig; |
○ | approval by special resolution of the amendment of Tuatara’s existing organizational documents; |
○ | approval of the 2022 Incentive Plan; |
○ | approval of the issuance by New SpringBig of convertible notes, warrants and the underlying common stock of such convertible notes and warrants upon their conversion or exercise, as applicable, to certain investors; |
○ | elect directors of New SpringBig; and |
○ | approval of the adjournment of the general meeting to a later date or dates, if necessary or appropriate, to permit further solicitation and vote of proxies in the event that there are insufficient votes for, or otherwise in connection with, the approval of the Transaction Proposals. |
Q: | Why am I receiving this proxy statement/prospectus? |
A: | Tuatara shareholders are being asked to consider and vote upon, among other things, a proposal to approve the transactions contemplated by the merger agreement. The merger agreement provides, subject to the terms and conditions contained therein, that Tuatara’s wholly owned direct subsidiary, Merger Sub, will merge with and into SpringBig, with SpringBig continuing as the surviving entity and a subsidiary of New SpringBig. Shareholder approval of the merger agreement and the transactions contemplated thereby is required by the merger agreement and the existing organizational documents, as well as to comply with Nasdaq Stock Market Listing Rule 5635. |
Q: | Why is Tuatara proposing the business combination? |
A: | Tuatara was organized to effect a merger, amalgamation, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. |
Q: | What is being voted on at the general meeting? |
A: | Tuatara shareholders will vote on the following proposals at the general meeting: |
1. | The Business Combination Proposal – To consider and vote upon a proposal to approve the transactions contemplated by the merger agreement, by and among Tuatara, Merger Sub, SpringBig and the holder representative, pursuant to which Merger Sub will merge with and into SpringBig, with SpringBig continuing as the surviving entity and a subsidiary of New SpringBig, on the terms and subject to the conditions set forth therein. A copy of the merger agreement is attached to this proxy statement/prospectus as Annex A; |
2. | The Nasdaq Proposal – To consider and vote upon a proposal to approve, for purposes of complying with applicable listing rules of the Nasdaq, the issuance and sale by New SpringBig of common stock, par value $0.0001 per share, to (i) certain accredited investors, in each case in a private placement, the proceeds of which will be used to finance the business combination and related transactions and the costs and expenses incurred in connection therewith and (ii) to stockholders of SpringBig; |
3. | The Domestication Proposal – To consider and vote upon a proposal to approve by special resolution the change of Tuatara’s jurisdiction of incorporation from the Cayman Islands to the State of Delaware by deregistering as an exempted company in the Cayman Islands and domesticating and continuing as a corporation incorporated under the laws of the State of Delaware; |
4. | The Organizational Documents Proposals – To consider and vote upon six separate proposals to approve by special resolution material differences between the existing organizational documents and the proposed organizational documents of New SpringBig; |
5. | The Articles Amendment Proposal – To consider and vote upon a proposal to approve by special resolution the amendment of Tuatara’s existing organizational documents; |
6. | The Notes and Warrants Proposal – To consider and vote upon a proposal to approve, for purposes of satisfying conditions to closing the transactions contemplated by the securities purchase agreement, dated as of April 29, 2022, by and between Tuatara and certain institutional investors, the issuance of by New SpringBig of convertible notes, warrants and the underlying common stock of such convertible notes and warrants upon their conversion or exercise, as applicable (the “Notes and Warrants Proposal”); |
7. | The Director Election Proposal – For the holders of Class B ordinary shares to consider and vote upon a proposal to elect Sergey Sherman, Jeffrey Harris, Phil Schwarz, Jon Trauben, Steven Bernstein, Patricia Glassford and Amanda Lannert, in each case to serve as directors until their respective successors are duly elected and qualified, or until their earlier death, resignation or removal; |
8. | The Incentive Plan Proposal – To consider and vote upon a proposal to approve the 2022 Incentive Plan; and |
9. | The Adjournment Proposal – To consider and vote upon a proposal to approve the adjournment of the general meeting to a later date or dates, if necessary or appropriate, to permit further solicitation and vote of proxies in the event that there are insufficient votes for, or otherwise in connection with, the approval of the Business Combination Proposal, the Nasdaq Proposal, the Domestication Proposal, the Organizational Documents Proposals, the Articles Amendment Proposal, the Notes and Warrants Proposal, the Director Election Proposal and the Incentive Plan Proposal (the “Adjournment Proposal” and, together with the Business Combination Proposal, the Nasdaq Proposal, the Domestication Proposal, the Organizational Documents Proposals, the Articles Amendment Proposal, the Director Election Proposal, Incentive Plan Proposal and the Notes and Warrants Proposal, collectively, the “Transaction Proposals”). |
Q: | Why is Tuatara providing shareholders with the opportunity to vote on the business combination? |
A: | Under our existing organizational documents, we must provide all holders of public shares with the opportunity to have their public shares redeemed upon the consummation of the business combination either in conjunction with a tender offer or in conjunction with a shareholder vote. For business and other reasons, we have elected to provide our shareholders with the opportunity to have their public shares redeemed in connection with a shareholder vote rather than a tender offer. Therefore, we are seeking to obtain the approval of our shareholders of the Business Combination Proposal in order to allow our public shareholders to effectuate redemptions of their public shares in connection with the closing. The approval of our shareholders of the Business Combination Proposal is also a condition to closing in the merger agreement. |
Q: | What is the relationship between Tuatara and the investors who are investing in Tuatara in private placements to fund the business combination? |
A: | Simultaneously with the consummation of our IPO and the sale of the units, we consummated a private placement of 6,000,000 warrants at a price of $1.00 per warrant, issued to our sponsor, generating total proceeds of $6,000,000. |
Q: | Will the management of Tuatara and SpringBig change following the business combination? |
A: | The business and affairs of New SpringBig will be managed under the direction of its board of directors. Following the closing, New SpringBig’s board will be chaired by and include of Tuatara, and additional directors, a number of which shall be independent such that a majority of the board of directors is independent. Subject to the terms of the proposed organizational documents, the number of directors will be fixed by New SpringBig’s board of directors. Please see the section entitled “Officers and Directors of New SpringBig After the Business Combination” for more information. |
Q: | What is the form of consideration that the SpringBig equity holders will receive in return for the acquisition of SpringBig by Tuatara? |
A: | In accordance with the terms and subject to the conditions of the merger agreement, based on an implied equity value of $215 million, (i) each share of SpringBig capital stock (other than dissenting shares) will be canceled |
Q: | How were the transaction structure and consideration for the business combination determined? |
A: | The business combination was the result of an extensive search for a potential transaction utilizing the global network and investing and operating experience of Tuatara’s management team and board of directors. The terms of the business combination were the result of extensive negotiations between Tuatara, SpringBig, the holder representative and the other parties to the business combination. Please see the section entitled “The Business Combination – Background of the Business Combination” for more information. |
Q: | What conditions must be satisfied to complete the business combination? |
A: | There are a number of closing conditions in the merger agreement, including the approval by our shareholders of the Transaction Proposals (other than the Adjournment Proposal, the Articles Amendment Proposal and the Notes and Warrants Proposal) as well as certain regulatory approvals. For a summary of the conditions that must be satisfied or waived prior to completion of the business combination, see the section entitled “The Business Combination – The Merger Agreement – Conditions to Closing of the Business Combination.” |
Q: | What equity stake will current Tuatara public shareholders, the subscription investors, the SpringBig equity holders and our sponsor, officers and directors hold in New SpringBig following the consummation of the business combination? |
A: | Assuming there are no redemptions of our public shares and that no additional shares are issued prior to the completion of the business combination, it is anticipated that, upon completion of the business combination and related transactions, the ownership of Tuatara by our public shareholders, our subscription investors, the post-merger SpringBig equity holders and our sponsor, officers and directors will be as follows: |
○ | The public shareholders would own 31,000,000 shares of common stock, representing 49.4% of New SpringBig’s total outstanding shares of common stock; |
○ | the subscription investors would own 1,310,000 shares of common stock, representing 2.1% of New SpringBig’s total outstanding shares of common stock; |
○ | Our sponsor and affiliates of our sponsor would own 9,600,000 shares of common stock (including 600,000 shares received pursuant to the PIPE subscription financing), representing 15.3% of New SpringBig’s total outstanding shares of common stock; |
○ | Our officers and directors (including directors nominated for election at the general meeting) would own 5,896,666 shares of common stock, representing 9.4% of New SpringBig’s total outstanding shares of common stock; and |
○ | The SpringBig equity holders would own 21,500,000 shares of common stock, representing 34.2% of New SpringBig’s total outstanding shares of common stock. |
Q: | Did the board of directors of Tuatara obtain a third-party valuation or fairness opinion in determining whether or not to proceed with the business combination? |
A: | No. The board of directors of Tuatara did not obtain a third-party valuation or fairness opinion in connection with its determination to approve the business combination. Tuatara’s officers and directors have substantial experience in evaluating the operating and financial merits of companies from a wide range of industries and concluded that their experience and backgrounds, together with the experience and expertise of Tuatara’s advisors, enabled them to make the necessary analyses and determinations regarding the business combination. Accordingly, investors will be relying solely on the judgment of the board of directors of Tuatara in valuing SpringBig’s business and assuming the risk that the board of directors of Tuatara may not have properly valued such business. |
Q: | Why is Tuatara proposing the Nasdaq Proposal? |
A: | Tuatara is proposing the Nasdaq Proposal in order to comply with Nasdaq listing rules, which require, among other things, shareholder approval of certain transactions that result in the issuance of 20% or more of a company’s outstanding voting power or shares of common stock outstanding before the issuance of stock or securities or the issuance of stock or securities to any director, officer or “Substantial Shareholder.” In connection with the business combination, Tuatara is seeking shareholder approval for the issuance of: (i) 1,310,000 shares of common stock to the subscription investors in a private placement simultaneously with the closing of the business combination, and (ii) up to 21,500,000 shares of common stock to SpringBig equity holders. Because the number of securities that New SpringBig will issue to the subscription investors and the current SpringBig equity holders in connection with the business combination is equal to 20% or more of Tuatara’s outstanding voting power and outstanding common stock in connection with the business combination, it is required to obtain shareholder approval of such issuances pursuant to Nasdaq listing rules. Shareholder approval of the Nasdaq Proposal is also a condition to closing in the merger agreement. See the section entitled “Proposal No. 2 — The Nasdaq Proposal” for additional information. |
Q: | Why is Tuatara proposing the Domestication Proposal? |
A: | Tuatara’s shareholders are also being asked to consider and vote upon a proposal to approve a change of Tuatara’s jurisdiction of incorporation from the Cayman Islands to the State of Delaware by deregistering as an exempted company in the Cayman Islands and continuing and domesticating as a corporation incorporated under the laws of the State of Delaware, which is referred to as the “domestication.” The Domestication Proposal allows Tuatara to re-domicile as a Delaware entity. We believe that the domestication would, among other things, enable New SpringBig to avoid certain tax inefficiencies, including tax inefficiencies that would result if New SpringBig were to conduct an operating business in the United States as a foreign corporation following the business combination; provide legal, administrative, and other similar efficiencies; relocate our jurisdiction of organization to one that is the choice of domicile for many publicly traded corporations, as there is an abundance of case law to assist in interpreting the DGCL, and the Delaware legislature frequently updates the DGCL to reflect current technology and legal trends; and provide a favorable corporate environment which will help us compete more effectively with other publicly traded companies in raising capital and in attracting and retaining skilled and experienced personnel. See the section entitled “Proposal No. 3 – The Domestication Proposal,” for additional information. |
Q: | How will the domestication affect my public shares, public warrants and units? |
A: | Upon the consummation of the domestication, each of Tuatara’s currently issued and outstanding Class A ordinary shares and Class B ordinary shares will automatically convert by operation of law, on a one-for-one |
Q: | What amendments will be made to the existing organizational documents of Tuatara? |
A: | In connection with the domestication, Tuatara’s shareholders also are being asked to consider and vote upon a proposal to replace the existing organizational documents of Tuatara under the Cayman Islands Companies Act with the proposed organizational documents of New SpringBig under the DGCL, which differ materially from the existing organizational documents. |
| | Existing Organizational Documents | | | Proposed Organizational Documents | |
Corporate Name (Organizational Documents Proposal A) | | | The existing organizational documents provide the name of the company is “Tuatara Capital Acquisition Corporation” See paragraph 1 of the existing organizational documents. | | | The proposed organizational documents provide the new name of the corporation to be “SpringBig Holdings, Inc.” See Article 1 of the proposed charter. |
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Exclusive Forum (Organizational Documents Proposal A) | | | The existing organizational documents do not contain a provision adopting an exclusive forum for certain shareholder litigation. | | | The proposed organizational documents adopt Delaware as the exclusive forum for certain stockholder litigation. See Article 11 of the proposed charter. |
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Perpetual Existence (Organizational Documents Proposal A) | | | The existing organizational documents provide that if we do not consummate a business combination (as defined in our existing organizational documents) by February 17, 2023, Tuatara will cease all operations except for the purposes of winding-up, liquidation and dissolution and shall redeem the shares issued in its initial public offering and liquidate its trust account. See Article 49.7 of the existing organizational documents. | | | The proposed organizational documents do not contain a provision with regard to the cessation of operations if we do not consummate a business combination by February 17, 2023 and New SpringBig’s existence will be perpetual. |
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Provisions Related to Status as Blank Check Company (Organizational Documents Proposal A) | | | The existing organizational documents set forth various provisions related to our status as a blank check company prior to the consummation of a business combination. See Article 49 of the existing organizational documents. | | | The proposed organizational documents do not include provisions related to our status as a blank check company prior to the consummation of a business combination. |
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| | Existing Organizational Documents | | | Proposed Organizational Documents | |
Waiver of Corporate Opportunities (Organizational Documents Proposal A) | | | The existing organizational documents do not provide an explicit waiver of corporate opportunities for Tuatara or its directors. | | | The proposed organizational documents provide an explicit waiver of corporate opportunities for New SpringBig and its officers or directors, subject to certain exceptions. See Article 9 of the proposed charter. |
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Classified Board of Directors (Organizational Documents Proposal B) | | | The existing organizational documents provide that the board of directors will be divided into two classes, with each class generally serving for a term of two years and only one class of directors being elected in each year. See Article 27 of the existing organizational documents. | | | The proposed organizational documents provide that the board of directors of New SpringBig will be divided into three classes, with each class generally serving for a term of three years and only one class of directors being elected in each year. See Article 5.2 of the proposed charter. |
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Removal for Cause (Organizational Documents Proposal C) | | | The existing organizational documents provide that any director may be removed from office (i) if prior to the consummation of a business combination, by an ordinary resolution of the holders of the Class B ordinary shares and (ii) if following the consummation of a business combination, by an ordinary resolution of the holders of ordinary shares. See Article 29 of the existing organizational documents. | | | The proposed charter provides that, any director may be removed from office at any time, but only for cause by the affirmative vote of the holders of at least two-thirds of the voting power of all then outstanding shares of capital stock entitled to vote generally in the election of directors, voting together as a single class. See Section 5.4 of the proposed charter. |
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Ability of Stockholder to Call a Special Meeting (Organizational Documents Proposal D) | | | The existing organizational documents do not permit the shareholders to call an extraordinary general meeting of Tuatara. See Article 20.1 and 20.3 of the existing organizational documents. | | | The proposed organizational documents provide that, subject to the rights, if any, of the holders of any outstanding series of Preferred Stock, the stockholders of New SpringBig are not permitted to call a special meeting. See Article 7.1 of the proposed charter and Section 2.2 of the proposed bylaws. |
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| | Existing Organizational Documents | | | Proposed Organizational Documents | |
Action by Written Consent (Organizational Documents Proposal E) | | | The existing organizational documents provide that a resolution in writing signed by all the shareholders entitled to vote at general meetings shall be as valid and effective as if the same had been passed at a duly convened and held general meeting. See Article 22.3 of the existing organizational documents. | | | The proposed organizational documents provide that, any action required or permitted to be taken by New SpringBig stockholders must be effected by a duly called annual or special meeting of such stockholders and may not be effected by written consent of the stockholders. See Article 7.3 of the proposed charter and Section 2.9 of the proposed bylaws. |
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Authorized Shares (Organizational Documents Proposal F) | | | Our existing organizational documents authorize the issuance of up to 200,000,000 Class A ordinary shares, 20,000,000 Class B ordinary shares, and 1,000,000 preferred shares, par value $0.0001 per share. See paragraph 5 of the existing organizational documents. | | | The proposed charter authorizes the issuance of shares of common stock and shares of preferred stock, each with a par value $0.0001 per share. See Article 4 of the proposed charter. |
Q: | Why is Tuatara proposing the Articles Amendment Proposal? |
A: | The proposed amendments to the existing organizational documents, prior to the domestication, in the judgment of the board of directors, are necessary to facilitate the business combination. The existing organizational documents limit Tuatara’s ability to consummate a business combination, or to redeem Class A ordinary shares in connection with a business combination, if it would cause Tuatara to have less than $5,000,001 in net tangible assets. The purpose of such limitation is to ensure that the Tuatara ordinary shares are not deemed to be a “penny stock” pursuant to Rule 3a51-1 under the Exchange Act. Because the Class A ordinary shares and the New SpringBig common stock would not be deemed to be a “penny stock” pursuant to applicable provisions of Rule 3a51-1 under the Exchange Act, Tuatara is presenting the Articles Amendment Proposal to facilitate the consummation of the business combination. While the closing is not expressly conditioned on the approval of the Articles Amendment Proposal, if the Articles Amendment Proposal is not approved, significant redemptions could prevent the satisfaction of a condition to the closing of the business combination. See the section entitled “Proposal No. 10 – The Articles Amendment Proposal,” for additional information. |
Q: | Why is Tuatara proposing the Notes and Warrants Proposal? |
A: | The proposed approval of the issuance of the Notes, Warrants and the common stock underlying the Notes and Warrants upon their conversion or exercise is necessary to consummate the Convertible Notes Financing. The Convertible Notes Financing requires, as a condition to closing the Convertible Notes Financing, that our shareholders approve the Notes and Warrants Proposal. Additionally, Tuatara is asking its shareholders to approve the issuance because of the remote circumstance in which an issuance of common stock underlying the Notes and Warrants results in an issuance of more than 20% of the outstanding common stock and would therefore implicate the Nasdaq Stock Market Listing Rule 5635(b) and (d). Under the Nasdaq Stock Market Listing Rule 5635(b), shareholder approval is required when any issuance or potential issuance will result in a “change of control” of the issuer. Although The Nasdaq Stock Market has not adopted any rule on what constitutes a “change of control” for purposes of Rule 5635(b), The Nasdaq Stock Market has previously indicated that the acquisition of, or right to acquire, by a single investor or affiliated investor group, as little as 20% of the common stock (or securities convertible into or exercisable for common stock) or voting power of |
Q: | What happens if I sell my ordinary shares before the general meeting? |
A: | The record date for the general meeting is earlier than the date that the business combination is expected to be completed. If you transfer your ordinary shares after the record date, but before the general meeting, unless the transferee obtains from you a proxy to vote those shares, you will retain your right to vote at the general meeting. However, you will not be able to seek redemption of your ordinary shares because you will no longer be able to deliver them for cancellation upon consummation of the business combination in accordance with the provisions described herein. If you transfer your ordinary shares prior to the record date, you will have no right to vote those shares at the general meeting or have those shares redeemed for a pro rata portion of the proceeds held in the trust account. |
Q: | What vote is required to approve the Transaction Proposals presented at the general meeting? |
A: | The Business Combination Proposal, the Nasdaq Proposal, the Incentive Plan Proposal, the Notes and Warrants Proposal and the Adjournment Proposal must be approved by an ordinary resolution as a matter of Cayman Islands law, being the affirmative vote (in person or by proxy) of a majority of the shareholders who attend and vote at the general meeting. Pursuant to our existing organizational documents, until the closing, only holders of Class B ordinary shares can appoint or remove directors. Therefore, only holders of Class B ordinary shares will vote on the Director Election Proposal. The election of each director nominee must be approved by an ordinary resolution as a matter of Cayman Islands law, being the affirmative vote (in person or by proxy) of the holders of not less than a majority of the outstanding Class B ordinary shares as of the record date that are present and vote at the general meeting. Approval of the Organizational Documents Proposals, the Articles Amendment Proposal and the Domestication Proposal must be approved by a special resolution as a matter of Cayman Islands law, being the affirmative vote (in person or by proxy) of a majority of not less than two-thirds of the shareholders who attend and vote at the general meeting. Currently, shareholders that have agreed to vote ordinary shares owned by them in favor of the Transaction Proposals own approximately 20% of our issued and outstanding ordinary shares, in the aggregate, including the founder shares. Accordingly, approximately 30% of non-affiliated ordinary shares are required to vote in the affirmative to pass each of the Business Combination Proposal, the Nasdaq Proposal, the Incentive Plan Proposal, the Notes and Warrants Proposal and the Adjournment Proposal and approximately 47% of non-affiliated ordinary shares are required to vote in the affirmative to pass each of the Organizational Documents Proposals, the Articles Amendment Proposal and the Domestication Proposal. Assuming only a quorum is present at the general meeting, approximately 5% of non-affiliated ordinary shares are required to vote in the affirmative to pass each of the Business Combination |
Q: | May our sponsor, directors, officers, advisors or their affiliates purchase public shares or warrants prior to or in connection with the business combination? |
A: | Prior to or in connection with the business combination, our sponsor, directors, officers, or advisors or their respective affiliates may purchase public shares or warrants. None of our sponsor, directors, officers or advisors or their respective affiliates will make any such purchases when they are in possession of any material non-public information not disclosed to the seller or if prohibited during a restricted period under Regulation M under the Exchange Act. Such purchases of public shares may be in privately negotiated transactions with shareholders who would have otherwise elected to have their public shares redeemed in connection with the business combination. In the event that our sponsor, directors, officers or advisors or their affiliates purchase shares in privately negotiated transactions from public shareholders who have already elected to exercise their redemption rights, such selling shareholders may be required to revoke their prior elections to redeem their shares. Any such privately negotiated purchases of public shares may be effected at purchase prices that are below or in excess of the per-share pro rata portion of the trust account. |
Q: | How many votes do I have at the general meeting? |
A: | Tuatara’s shareholders are entitled to one vote at the general meeting for each ordinary share held of record as of , 2022, the record date for the general meeting (the “record date”). As of the close of business on the record date, there were a combined outstanding ordinary shares. |
Q: | What constitutes a quorum at the general meeting? |
A: | Holders of a majority of the issued shares entitled to vote at the general meeting, present in person or represented by proxy, constitute a quorum. In the absence of a quorum, the chairman of the meeting has the power to adjourn the general meeting. As of the record date for the general meeting, ordinary shares, in the aggregate, would be required to achieve a quorum. |
Q: | How will Tuatara’s sponsor, directors and officers vote? |
A: | In connection with the IPO, we entered into the sponsor IPO letter agreement with our sponsor and each of our directors and officers, pursuant to which each agreed to vote any ordinary shares owned by them in favor of the business combination. Concurrently with the original merger agreement, we entered into the sponsor letter agreement with our sponsor and SpringBig, pursuant to which our sponsor agreed to waive any adjustment to the conversion ratio set forth in Tuatara’s amended and restated memorandum and articles of association with respect to the Class B ordinary shares of Tuatara held by the Sponsor, in each case, on the terms and subject to the conditions set forth in the sponsor agreement. Currently, shareholders that have agreed to vote ordinary shares owned by them in favor of the Transaction Proposals own approximately 20% of our issued and outstanding ordinary shares, in the aggregate, including the founder shares. See the section entitled “The Business Combination – Related Agreements – Sponsor Letter Agreement.” |
Q: | What interests do the current officers and directors have in the business combination? |
A: | In considering the recommendation of our board of directors to vote in favor of the business combination, shareholders should be aware that, aside from their interests as shareholders, our sponsor and certain of our directors and officers have interests in the business combination that are different from, or in addition to, those of other shareholders generally. Our directors were aware of and considered these interests, among other matters, in evaluating the business combination and in recommending to shareholders that they approve the business combination. Shareholders should take these interests into account in deciding whether to approve the business combination. These interests include, among other things: |
Q: | Do I have redemption rights? |
A: | Pursuant to our existing organizational documents, we are providing the public shareholders with the opportunity to have their public shares redeemed at the closing of the business combination at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the trust account as of two business days prior to the consummation of a business combination, including interest (which interest shall be net of taxes payable), divided by the number of then outstanding Class A ordinary shares included as part of the units sold in the IPO, subject to the limitations described in this proxy statement/prospectus. The per-share amount we will distribute to investors who properly redeem their shares will not be reduced by the deferred underwriting commissions we will pay to one of the |
Q. | What happens if a substantial number of public shareholders vote in favor of the Business Combination Proposal and exercise their redemption rights? |
A. | Tuatara’s public shareholders may vote in favor of the Business Combination Proposal and still exercise their redemption rights, although they are not required to vote either for or against the business combination, or vote at all, or to be holders on the record date, in order to exercise such redemption rights. Accordingly, the business combination may be consummated even though the funds available from the trust account and the number of public stockholders are substantially reduced as a result of redemption by public stockholders. If the Articles Amendment Proposal is not approved, the business combination would be subject to the requirement that Tuatara have at least $5,000,001 of net tangible assets remaining after Tuatara’s shareholders have exercised their right to redeem their shares in connection with the closing. With fewer public shares and public stockholders, the trading markets for the SpringBig common stock following the closing of the business combination may be less liquid than the market for the shares prior to the business combination. Even though Tuatara has partially waived, and may further waive, lockups with certain Supporting Holders, Tuatara may not be able to meet the listing standards of Nasdaq, which is a condition to closing the business combination. In addition, with fewer funds available from the trust account, the capital infusion from the trust account into SpringBig’s business will be reduced and SpringBig may not be able to fully achieve its business plans or goals. |
Q: | Will how I vote affect my ability to exercise redemption rights? |
A: | No. You may exercise your redemption rights whether you vote your ordinary shares for or against or abstain from voting on the Business Combination Proposal or any other Transaction Proposal described in this proxy statement/prospectus. As a result, the business combination can be approved by shareholders who will redeem their shares and no longer remain shareholders. |
Q: | Are there any risks that I should consider as a Tuatara shareholder in deciding how to vote or whether to exercise my redemption rights? |
A: | Yes. You should read and carefully consider the risk factors set forth in the section entitled “Risk Factors” beginning on page 58. You also should read and carefully consider the risk factors of Tuatara and SpringBig contained in the documents that are incorporated by reference herein. |
Q: | How do I exercise my redemption rights? |
A: | In order to exercise your redemption rights, you must (i) if you hold your ordinary shares through units, elect to separate your units into the underlying public shares and public warrants prior to exercising your redemption rights with respect to the public shares, and (ii) prior to , local time, on , 2022 (two (2) business days before the general meeting), tender your shares electronically and submit a request in writing that we redeem your public shares for cash to Continental Stock Transfer & Trust Company, our transfer agent, at the following address: |
Q: | What are the U.S. federal income tax consequences of exercising my redemption rights? |
A: | A U.S. Holder (as defined in “U.S. Federal Income Tax Considerations” below) of Class A ordinary shares (if the domestication does not occur) or common stock (if the domestication occurs) as the case may be, that exercises its redemption rights to receive cash from the trust account in exchange for such ordinary shares or common stock may (subject to the application of the PFIC (as defined in “U.S. Federal Income Tax Considerations” below) rules) be treated as selling such ordinary shares or common stock resulting in the recognition of capital gain or capital loss. There may be certain circumstances in which the redemption may be treated as a distribution for U.S. federal income tax purposes depending on the amount of ordinary shares or common stock, as the case may be, that a U.S. Holder owns or is deemed to own (including through the ownership of warrants). For a more complete discussion of the U.S. federal income tax considerations of an exercise of redemption rights by a U.S. Holder, see the sections entitled “U.S. Federal Income Tax Considerations – Tax Consequences of the Ownership and Disposition of Class A Ordinary Shares and Public Warrants if the Domestication Does Not Occur – Redemption of Class A Ordinary Shares” and “U.S. Federal Income Tax Considerations – Tax Consequences of a Redemption of Common Stock to U.S. Holders and Non-U.S. Holders.” Additionally, because the domestication will occur (if it is approved) prior to the redemption of U.S. Holders that exercise redemption rights, U.S. Holders exercising redemption rights will be subject to the potential tax consequences of Section 367 of the Code (as defined in “U.S. Federal Income Tax Considerations” below) and the PFIC rules as a result of the domestication. The tax consequences of Section 367 of the Code and the PFIC rules are discussed more fully below under “U.S. Federal Income Tax Considerations.” We urge you to consult your tax advisors regarding the tax consequences of exercising your redemption rights. |
Q: | What are the U.S. federal income tax consequences of the Domestication Proposal? |
A: | The domestication should constitute a tax-free reorganization within the meaning of Section 368(a)(1)(F) of the Code. Assuming that the domestication so qualifies, the following summarizes the consequences to U.S. Holders (as defined in “U.S. Federal Income Tax Considerations” below) of the domestication: |
Q: | What are the U.S. federal income tax consequences if I receive additional shares in connection with not exercising my redemption right? |
A: | The tax consequences if you receive additional shares in connection with not exercising your redemption rights (“Additional Shares”) are not clear under current law. It is more likely than not that the receipt of Additional Shares will be treated as a stock dividend, in which case U.S. Holders (as defined in “U.S. Federal Income Tax Considerations” below) and Non-U.S. Holders (as defined in “U.S. Federal Income Tax Considerations” below) would not be subject to tax upon the receipt of the Additional Shares. However, other treatments are possible and, accordingly, you may be required to include the fair market value of Additional Shares received in income. If you are a Non-U.S. Holder and required to include the fair market value of Additional Shares received in income, you may be subject to withholding at a rate of 30% of the fair market value of the Additional Shares, unless you are eligible for a reduced rate of withholding tax under an applicable income tax treaty and provide proper certification of your eligibility for such reduced rate (usually on an IRS Form W-8BEN or W-8BEN-E, or other applicable IRS Form W-8). |
Q: | If I am a warrant holder, can I exercise redemption rights with respect to my warrants? |
A: | No. The holders of our warrants have no redemption rights with respect to our warrants. If Tuatara public shareholders redeem their ordinary shares, they will continue to hold warrants. However, once the warrants become exercisable and prior to their expiration, we may redeem the public warrants for redemption in whole and not in part, (i) at a price of $0.01 per warrant, upon not less than thirty (30) days’ prior written notice of redemption to each public warrant holder, and if, and only if, the reported last sales price of the shares of common stock equals or exceeds $18.00 per share (as adjusted for share splits, share dividends, rights issuances, subdivisions, reorganizations, recapitalizations and the like) for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date we send the notice of redemption to the public warrant holders or (ii) at a price of $0.10 per warrant, if the last sale price of our ordinary shares equals or exceeds $10.00 over the same trading day period, and in either case warrant holders may exercise their warrants in advance of the related redemption date, which in the case of clause (ii) will involve any exercises being cashless exercised where the number of shares deliverable upon exercise will be based on a table as described under the heading “Description of Securities.” Our current stock price is close to the $10.00 per share price that could trigger the ability of New SpringBig to call the warrants for redemption at a redemption price of $0.10 per warrant. In that case, warrant holders would have their warrants redeemed for $0.10 per warrant, which may be significantly below the then-prevailing market price of the warrants, unless the warrant holder (i) exercises its warrants in advance of the redemption date pursuant to the table as described under the heading “Description of Securities” or (ii) sells its warrants at the then-current market price when it might otherwise wish to hold its warrants. See “Risk Factors—Risks Related to Tuatara and the Business Combination—We may redeem unexpired warrants prior to their exercise at a time that is disadvantageous to warrant holders, thereby making their warrants worthless.” The private placement warrants, however, are non-redeemable so long as our sponsor or its permitted transferees holds them, except in the case of our redemption pursuant to clause (ii) above. |
Q: | Do I have appraisal rights if I object to the business combination? |
A: | No. There are no appraisal rights available to holders of ordinary shares of Tuatara in connection with the business combination under Cayman Islands law or the DGCL. |
Q: | Do I have appraisal rights in connection with the Domestication Proposal? |
A: | No. There are no appraisal rights available to holders of ordinary shares of Tuatara in connection with the Domestication Proposal under Cayman Islands law or the DGCL. |
Q: | What happens to the funds deposited in the trust account after consummation of the business combination? |
A: | If the Business Combination Proposal is approved, Tuatara intends to use a portion of the funds held in the trust account to pay (i) tax obligations and deferred underwriting commissions from the IPO and (ii) for any redemptions of public shares. The remaining balance in the trust account, together with certain proceeds received from the PIPE subscription financing will be used to finance the costs and expenses incurred in connection therewith and to provide operation capital for future operations. See the section entitled “The Business Combination” for additional information. |
Q: | What happens if the business combination is not consummated or is terminated? |
A: | There are certain circumstances under which the merger agreement may be terminated. See the section entitled “The Business Combination – The Merger Agreement – Termination” for additional information regarding the parties’ specific termination rights. In accordance with our existing organizational documents, if an initial business combination is not consummated by February 17, 2023, Tuatara will (i) cease all operations except for the purpose of winding up; (ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem the public shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the trust account, including interest (less up to $100,000 of interest to pay dissolution expenses and which interest shall be net of taxes payable), divided by the number of then issued and outstanding public shares, which redemption will completely extinguish public shareholders’ rights as shareholders (including the right to receive further liquidating distributions, if any); and (iii) as promptly as reasonably possible following such redemption, subject to the approval of our remaining shareholders and our board of directors, dissolve and liquidate, subject in each case to our obligations under Cayman Islands law to provide for claims of creditors and the requirements of other applicable law. |
Q: | When is the business combination expected to be consummated? |
A: | It is currently anticipated that the business combination will be consummated as promptly as possible following the general meeting of Tuatara shareholders to be held on , 2022, provided that all the requisite shareholder approvals are obtained and other conditions to the consummation of the business combination have been satisfied or waived. The parties to the merger agreement have determined that the business combination does not require a notification and report form to be filed in connection with the HSR Act and accordingly have waived such condition. The merger agreement may be terminated and the business combination and the other transactions contemplated thereby may be abandoned at any time prior to the closing if the approval of Tuatara’s shareholders in respect of any Transaction Proposal (other than the Articles Amendment Proposal, Notes and Warrants Proposal and Adjournment Proposal) is not obtained at the Tuatara general meeting. For a description of the conditions for the completion of the business combination, see the section entitled “The Business Combination – The Merger Agreement – Conditions to Closing of the Business Combination” beginning on page |
Q: | When and where will the general meeting take place? |
A: | The general meeting will be convened on , 2022 at a.m., local time, at the offices of and online via . In the interest of public health, and due to the impact of the ongoing COVID-19 pandemic, Tuatara is planning for the meeting to be held both in the location noted above and virtually pursuant to the procedures described in this proxy statement/prospectus. |
Q: | How do I attend the general meeting? |
A: | As a registered shareholder, you will receive the proxy card from . The form contains instructions on how to attend the general meeting. Shareholders attending in person will be asked to follow recommended guidance, mandates, and applicable executive orders from federal and state authorities, particularly as they relate to social distancing and attendance at public gatherings. The proxy card will also contain instructions on how to attend the virtual meeting, including the URL address, along with your control number. You will need your control number for access. If you do not have your control number, contact at the phone number or email address below. support contact information is as follows: , or email . |
Q: | What do I need to do now? |
A: | You are urged to read carefully and consider the information contained in this proxy statement/prospectus, including “Risk Factors” and the annexes, and the documents incorporated by reference herein, and to consider how the business combination will affect you as a shareholder. You should then vote as soon as possible in accordance with the instructions provided in this proxy statement/prospectus and on the enclosed proxy card or, if you hold your shares through a brokerage firm, bank or other nominee, on the voting instruction form provided by the broker, bank or nominee. |
Q: | How do I vote? |
A: | If you were a holder of record of ordinary shares on , 2022, the record date for the general meeting of Tuatara shareholders, you may vote with respect to the Transaction Proposals at the general meeting (virtually or in person) or by completing, signing, dating and returning the enclosed proxy card in the postage-paid envelope provided. If you hold your shares in “street name,” which means your shares are held of record by a broker, bank or other nominee, you should follow the instructions provided by your broker, bank or nominee to ensure that votes related to the shares you beneficially own are properly counted. In this regard, you must provide the record holder of your shares with instructions on how to vote your shares or, if you wish to attend the general meeting and vote in person or virtually, obtain a proxy from your broker, bank or nominee. Abstentions and broker non-votes, while considered present for the purposes of establishing a quorum, will not count as votes cast and will have no effect on the outcome of the vote on any of the Transaction Proposals. If a shareholder does not give the broker voting instructions, under applicable self-regulatory organization rules, its broker may not vote its shares on “non-routine” proposals, such as the Business Combination Proposal and the Domestication Proposal. |
Q: | What will happen if I abstain from voting or fail to vote at the general meeting? |
A: | At the general meeting, Tuatara will count a properly executed proxy marked “ABSTAIN” with respect to a particular Transaction Proposal as present for purposes of determining whether a quorum is present. For purposes of approval, abstentions and broker non-votes, while considered present for the purposes of establishing a quorum, will not count as votes cast and will have no effect on the outcome of the vote on any of the Transaction Proposals. |
Q: | What will happen if I sign and submit my proxy card without indicating how I wish to vote? |
A: | Signed and dated proxies received by Tuatara without an indication of how the shareholder intends to vote on a Transaction Proposal will be treated as an abstention. |
Q: | If I am not going to attend the general meeting, should I submit my proxy card instead? |
A: | Yes. Whether you plan to attend the general meeting in person or virtually, or not attending the general meeting, please read this proxy statement/prospectus carefully, and vote your shares by completing, signing, dating and returning the enclosed proxy card in the postage-paid envelope provided. |
Q: | What is a broker non-vote? |
A: | Generally, a broker non-vote occurs when a bank, broker, custodian or other record holder that holds shares in “street name” is precluded from exercising voting discretion on a particular proposal because (i) the beneficial owner has not instructed the bank, broker, custodian or other record holder how to vote, and (ii) the bank, broker, custodian, or other record holder lacks discretionary voting power to vote such shares. Absent specific voting instructions from the beneficial owners of such shares, a bank, broker, custodian or other record holder does not have discretionary voting power with respect to the approval of “non-routine” matters, such as the Business Combination Proposal and the Domestication Proposal. |
Q: | If my shares are held in “street name,” will my broker, bank or nominee automatically vote my shares for me? |
A: | No. If your shares are held in a stock brokerage account or by a bank or other nominee, you are considered the “beneficial holder” of the shares held for you in what is known as “street name.” If this is the case, this proxy statement/prospectus may have been forwarded to you by your brokerage firm, bank or other nominee, or its |
Q: | May I change my vote after I have submitted my executed proxy card? |
A: | Yes. You may change your vote by sending a later-dated, signed proxy card to Tuatara’s General Counsel at the address listed below so that it is received by our General Counsel prior to the general meeting or attend the general meeting (in person or virtually) and vote. You also may revoke your proxy by sending a notice of revocation to Tuatara’s General Counsel, which must be received prior to the general meeting. |
Q: | What should I do if I receive more than one set of voting materials? |
A: | You may receive more than one set of voting materials, including multiple copies of this proxy statement/prospectus and multiple proxy cards or voting instruction cards. For example, if you hold your shares in more than one brokerage account, you will receive a separate voting instruction card for each brokerage account in which you hold shares. If you are a holder of record and your shares are registered in more than one name, you will receive more than one proxy card. Please complete, sign, date and return each proxy card and voting instruction card that you receive in order to cast your vote with respect to all of your shares. |
Q: | Where can I find the voting results of the general meeting? |
A: | The preliminary voting results are expected to be announced at the general meeting. In addition, within four business days following certification of the final voting results, Tuatara will file the final voting results of the general meeting with the SEC in a Current Report on Form 8-K. |
Q: | Who can help answer my questions? |
A: | If you have questions about the Transaction Proposals or if you need additional copies of the proxy statement/prospectus or the enclosed proxy card you should contact: |
Q: | Who will solicit and pay the cost of soliciting proxies? |
A: | Tuatara will pay the cost of soliciting proxies for the general meeting. Tuatara has engaged Morrow Sodali LLC (“Morrow”) to assist in the solicitation of proxies for the general meeting. Tuatara has agreed to pay Morrow a fee of $35,000, plus disbursements. Tuatara will reimburse Morrow for reasonable out-of-pocket losses, damages and expenses. Tuatara will also reimburse banks, brokers and other custodians, nominees and fiduciaries representing beneficial owners of ordinary shares for their expenses in forwarding soliciting materials to beneficial owners of ordinary shares and in obtaining voting instructions from those owners. Our directors, officers and employees may also solicit proxies by telephone, by facsimile, by mail, on the Internet or in person. They will not be paid any additional amounts for soliciting proxies. |
(i) | If the Earnout Trigger Event occurs prior to the one-year anniversary of the Effective Time and results in an Earnout Trigger Price that is greater than $10.00, but less than $12.00, then only a portion of the First Tranche Shares shall be issued to the SpringBig shareholders and Engaged Option Holders equal to the First Tranche Shares multiplied by a fraction calculated as: (A) the numerator of which shall be the Earnout Trigger Price minus $10 and (B) the denominator of which is 2. |
(ii) | If the Earnout Trigger Event occurs after the one-year anniversary of the Closing Date and results in an Earnout Trigger Price that is less than $12.00, then none of the Contingent Shares shall be issued. |
(iii) | If the Earnout Trigger Event occurs at any time during the 60 months following the effective time and results in an Earnout Trigger Price that is equal to or greater than $15.00, but less than $18.00, then only the First Tranche Shares and Second Tranche Shares shall be issued to the SpringBig shareholders and Engaged Option Holders. |
(iv) | If the Earnout Trigger Event occurs at any time during the 60 months following the effective time and results in an Earnout Trigger Price equal to or greater than $18.00, then all of the Contingent Shares shall be issued to the SpringBig shareholders and Engaged Option Holders. |
| | Existing Organizational Documents | | | Proposed Organizational Documents | |
Corporate Name (Organizational Documents Proposal A) | | | The existing organizational documents provide the name of the company is “Tuatara Capital Acquisition Corporation” See paragraph 1 of the existing organizational documents. | | | The proposed organizational documents provide the new name of the corporation to be “ .” See Article 1 of the proposed charter. |
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Exclusive Forum (Organizational Documents Proposal A) | | | The existing organizational documents do not contain a provision adopting an exclusive forum for certain shareholder litigation. | | | The proposed organizational documents adopt Delaware as the exclusive forum for certain stockholder litigation. See Article 11 of the proposed charter. |
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Perpetual Existence (Organizational Documents Proposal A) | | | The existing organizational documents provide that if we do not consummate a business combination (as defined in our existing organizational documents) by February 17, 2023, Tuatara will cease all operations except for the purposes of winding-up, liquidation and dissolution and shall redeem the shares issued in its initial public offering and liquidate its trust account. See Article 49.7 of the existing organizational documents. | | | The proposed organizational documents do not contain a provision with regard to the cessation of operations if we do not consummate a business combination by February 17, 2023 and New SpringBig’s existence will be perpetual. |
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Provisions Related to Status as Blank Check Company (Organizational Documents Proposal A) | | | The existing organizational documents set forth various provisions related to our status as a blank check company prior to the consummation of a business combination. See Article 49 of the existing organizational documents. | | | The proposed organizational documents do not include provisions related to our status as a blank check company prior to the consummation of a business combination. |
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Waiver of Corporate Opportunities (Organizational Documents Proposal A) | | | The existing organizational documents do not provide an explicit waiver of corporate opportunities for Tuatara or its directors. | | | The proposed organizational documents provide an explicit waiver of corporate opportunities for New SpringBig and its officers or directors, subject to certain exceptions. See Article 9 of the proposed charter. |
| | Existing Organizational Documents | | | Proposed Organizational Documents | |
Classified Board of Directors (Organizational Documents Proposal B) | | | The existing organizational documents provide that the board of directors will be divided into two classes, with each class generally serving for a term of two years and only one class of directors being elected in each year. See Article 27 of the existing organizational documents. | | | The proposed organizational documents provide that the board of directors of New SpringBig will be divided into three classes, with each class generally serving for a term of three years and only one class of directors being elected in each year. See Article 5.2 of the proposed charter. |
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Removal for Cause (Organizational Documents Proposal C) | | | The existing organizational documents provide that any director may be removed from office (i) if prior to the consummation of a business combination, by an ordinary resolution of the holders of the Class B ordinary shares and (ii) if following the consummation of a business combination, by an ordinary resolution of the holders of ordinary shares. See Article 29 of the existing organizational documents. | | | The proposed charter provides that, any director may be removed from office at any time, but only for cause by the affirmative vote of the holders of at least two-thirds of the voting power of all then outstanding shares of capital stock entitled to vote generally in the election of directors, voting together as a single class. See Section 5.4 of the proposed charter. |
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Ability of Stockholder to Call a Special Meeting (Organizational Documents Proposal D) | | | The existing organizational documents do not permit the shareholders to call an extraordinary general meeting of Tuatara. See Article 20.1 and 20.3 of the existing organizational documents. | | | The proposed organizational documents provide that, subject to the rights, if any, of the holders of any outstanding series of Preferred Stock, the stockholders of New SpringBig are not permitted to call a special meeting. See Article 7.1 of the proposed charter and Section 2.2 of the proposed bylaws. |
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Action by Written Consent (Organizational Documents Proposal E) | | | The existing organizational documents provide that a resolution in writing signed by all the shareholders entitled to vote at general meetings shall be as valid and effective as if the same had been passed at a duly convened and held general meeting. See Article 22.3 of the existing organizational documents. | | | The proposed organizational documents provide that, any action required or permitted to be taken by New SpringBig stockholders must be effected by a duly called annual or special meeting of such stockholders and may not be effected by written consent of the stockholders. See Article 7.3 of the proposed charter and Section 2.9 of the proposed bylaws. |
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| | Existing Organizational Documents | | | Proposed Organizational Documents | |
Authorized Shares (Organizational Documents Proposal F) | | | Our existing organizational documents authorize the issuance of up to 200,000,000 Class A ordinary shares, 20,000,000 Class B ordinary shares, and 1,000,000 preferred shares, par value $0.0001 per share. See paragraph 5 of the existing organizational documents. | | | The proposed charter authorizes the issuance of shares of common stock and shares of preferred stock, each with a par value $0.0001 per share. See Article 4 of the proposed charter. |
• | Scenario 1 - Assuming No Redemptions: This presentation assumes that no Tuatara shareholders exercise redemption rights with respect to their Class A ordinary shares upon consummation of the business combination; and |
• | Scenario 2 - Assuming Maximum Redemptions: This presentation assumes that 19,700,054 shares of Tuatara Class A ordinary shares are redeemed for their pro rata share of the cash in the trust account. This presentation assumes that Tuatara shareholders exercise their redemption rights with respect to a maximum of 19,700,054 ordinary shares upon consummation of the business combination at a redemption price of approximately $10.00 per share. The maximum redemption amount reflects the maximum number of Tuatara public shares that can be redeemed without violating the conditions of the business combination agreement and the assumption that Tuatara’s Amended and Restated Memorandum and Articles of Association are amended such that they will not be required to maintain a minimum net tangible asset value of at least $5,000,001 at the time of the closing of the business combination, after giving effect to the payments to redeeming shareholders. Scenario 2 includes all adjustments contained in Scenario 1 and presents additional adjustments to reflect the effect of the maximum redemptions. Should Tuatara’s shareholders attempt to redeem more than the maximum amount of 19,700,054 ordinary shares, it would be in violation of the conditions of the business combination agreement and Tuatara would not proceed with the business combination. Should the proposal to amend Tuatara’s Amended and Restated Memorandum and Articles of Association such that Tuatara will not be required to maintain a minimum net tangible asset value of at least $5,000,001 at the time of the closing of the business combination not be approved, Tuatara would not proceed with the business combination. |
| | SpringBig | | Tuatara | | Pro Forma Combined Scenario 1 Assuming No Redemptions into Cash | | Pro Forma Combined Scenario 2 Assuming Maximum Redemptions into Cash | | | SpringBig | | Tuatara | | Pro Forma Combined Scenario 1 Assuming No Redemptions into Cash | | Pro Forma Combined Scenario 2 Assuming Maximum Redemptions into Cash | |||||||
Statement of Operations Data – Year Ended December 31, 2021 | | | | | | | | | ||||||||||||||||
Revenues | | $24,024 | | $— | | $24,024 | | $24,024 | | $24,024 | | $— | | $24,024 | | $24,024 | ||||||||
Gross profit | | $17,095 | | $— | | $17,095 | | $17,095 | | $17,095 | | $— | | $17,095 | | $17,095 | ||||||||
Operating loss | | $(6,532) | | $(2,035) | | $(20,437) | | $(20,437) | | $(6,532) | | $(2,035) | | $(16,237) | | $(16,237) | ||||||||
Net (loss) income | | $(5,750) | | $7,707 | | $(12,025) | | $(12,025) | | $(5,750) | | $7,707 | | $(7,825) | | $(7,825) | ||||||||
Net (loss) income per share – basic | | $(0.43) | | $0.35 | | $(0.26) | | $(0.46) | | $(0.43) | | $0.35 | | $(0.17) | | $(0.30) | ||||||||
Net (loss) income per share – diluted | | $(0.43) | | $0.34 | | $(0.26) | | $(0.46) | | $(0.43) | | $0.34 | | $(0.17) | | $(0.30) | ||||||||
| | | | | | | | |||||||||||||||||
Balance Sheet Data – As of December 31, 2021 | | | | | | | | | ||||||||||||||||
Total current assets | | $6,479 | | $881 | | $210,071 | | $13,035 | | $6,479 | | $881 | | $214,271 | | $17,235 | ||||||||
Total assets | | $7,043 | | $200,917 | | $210,635 | | $13,599 | | $7,043 | | $200,917 | | $214,835 | | $17,799 | ||||||||
Total current liabilities | | $2,584 | | $1,663 | | $2,692 | | $2,692 | | $2,584 | | $1,663 | | $2,692 | | $2,692 | ||||||||
Total liabilities | | $2,584 | | $18,103 | | $20,299 | | $20,299 | | $2,584 | | $18,103 | | $20,299 | | $20,299 | ||||||||
Temporary equity | | $— | | $200,000 | | $— | | $— | | $— | | $200,000 | | $— | | $— | ||||||||
Total shareholders’ equity (deficit) | | $4,459 | | $(17,186) | | $190,336 | | $(6,700) | | $4,459 | | $(17,186) | | $194,536 | | $(2,500) |
(in thousands, except share and per share data) | | SpringBig | | Tuatara | | Pro Forma Combined Assuming No Redemptions into Cash | | Pro Forma Combined Assuming Maximum Redemptions into Cash | | SpringBig | | Tuatara | | Pro Forma Combined Assuming No Redemptions into Cash | | Pro Forma Combined Assuming Maximum Redemptions into Cash | ||||||||
Year Ended December 31, 2021 | | | | | | | | | ||||||||||||||||
Net (loss) income | | $(5,750) | | $7,707 | | $(12,025) | | $(12,025) | | $(5,750) | | $7,707 | | $(7,825) | | $(7,825) | ||||||||
Shareholders’ equity (deficit) | | 4,459 | | (17,186) | | 190,336 | | (6,700) | | 4,459 | | (17,186) | | 194,536 | | (2,500) | ||||||||
Weighted average shares outstanding – basic | | 13,385,267 | | 22,287,671 | | 46,810,000 | | 26,409,892 | | 13,385,267 | | 22,287,671 | | 46,810,000 | | 26,409,892 | ||||||||
Basic net (loss) income per share | | (0.43) | | 0.35 | | (0.26) | | (0.46) | | (0.43) | | 0.35 | | (0.17) | | (0.30) | ||||||||
Weighted average shares outstanding – diluted | | 13,385,267 | | 22,369,863 | | 46,810,000 | | 26,409,892 | | 13,385,267 | | 22,369,863 | | 46,810,000 | | 26,409,892 | ||||||||
Diluted net (loss) income per share | | (0.43) | | 0.34 | | (0.26) | | (0.46) | | (0.43) | | 0.34 | | (0.17) | | (0.30) | ||||||||
| | | | | | | | |||||||||||||||||
Book value per share – basic and diluted | | 0.33 | | (0.77) | | 4.07 | | (0.25) | | 0.33 | | (0.77) | | 4.16 | | 0.09 | ||||||||
| | | | | | | | |||||||||||||||||
Cash dividends declared per share – basic and diluted | | — | | — | | — | | — | | — | | — | | — | | — |
○ | The Share Conversion Ratio is determined by dividing (i) $215 million by (ii) the aggregate number of issued and outstanding SpringBig capital stock as of immediately prior to the effective time of the business combination and the aggregate number of SpringBig shares issuable upon the exercise of all SpringBig vested stock options (calculated using the treasury method of accounting) to determine the “Per Share Equity Value” and then dividing the Per Share Equity Value by $10.00. |
(i) | If the Earnout Trigger Event occurs prior to the one-year anniversary of the effective time and results in an Earnout Trigger Price that is greater than $10.00, but less than $12.00, then only a portion of the First Tranche Shares shall be issued to the SpringBig shareholders and Engaged Option Holders equal to the First Tranche Shares multiplied by a fraction calculated as: (A) the numerator of which shall be the Earnout Trigger Price minus $10 and (B) the denominator of which is 2. |
(ii) | If the Earnout Trigger Event occurs after the one-year anniversary of the Closing Date and results in an Earnout Trigger Price that is less than $12.00, then none of the Contingent Shares shall be issued. |
(iii) | If the Earnout Trigger Event occurs at any time during the 60 months following the effective time and results in an Earnout Trigger Price that is equal to or greater than $15.00, but less than $18.00, then only the First Tranche Shares and Second Tranche Shares shall be issued to the SpringBig shareholders and Engaged Option Holders. |
(iv) | If the Earnout Trigger Event occurs at any time during the 60 months following the effective time and results in an Earnout Trigger Price equal to or greater than $18.00, then all of the Contingent Shares shall be issued to the SpringBig shareholders and Engaged Option Holders. |
| | Existing Organizational Documents | | | Proposed Organizational Documents | |
Corporate Name (Organizational Documents Proposal A) | | | The existing organizational documents provide the name of the company is “Tuatara Capital Acquisition Corporation” See paragraph 1 of the existing organizational documents. | | | The proposed organizational documents provide the new name of the corporation to be “ .” See Article 1 of the proposed charter. |
| | | | |||
Exclusive Forum (Organizational Documents Proposal A) | | | The existing organizational documents do not contain a provision adopting an exclusive forum for certain shareholder litigation. | | | The proposed organizational documents adopt Delaware as the exclusive forum for certain stockholder litigation. See Article 11 of the proposed charter. |
| | | | |||
Perpetual Existence (Organizational Documents Proposal A) | | | The existing organizational documents provide that if we do not consummate a business combination (as defined in our existing organizational documents) by February 17, 2023, Tuatara will cease all operations except for the purposes of winding-up, liquidation and dissolution and shall redeem the shares issued in its initial public offering and liquidate its trust account. See Article 49.7 of the existing organizational documents. | | | The proposed organizational documents do not contain a provision with regard to the cessation of operations if we do not consummate a business combination by February 17, 2023 and New SpringBig’s existence will be perpetual. |
| | | | |||
Provisions Related to Status as Blank Check Company (Organizational Documents Proposal A) | | | The existing organizational documents set forth various provisions related to our status as a blank check company prior to the consummation of a business combination. See Article 49 of the existing organizational documents. | | | The proposed organizational documents do not include provisions related to our status as a blank check company prior to the consummation of a business combination. |
| | | | |||
Waiver of Corporate Opportunities (Organizational Documents Proposal A) | | | The existing organizational documents do not provide an explicit waiver of corporate opportunities for Tuatara or its directors. | | | The proposed organizational documents provide an explicit waiver of corporate opportunities for New SpringBig and its officers or directors, subject to certain exceptions. See Article 9 of the proposed charter. |
| | Existing Organizational Documents | | | Proposed Organizational Documents | |
Classified Board of Directors (Organizational Documents Proposal B) | | | The existing organizational documents provide that the board of directors will be divided into two classes, with each class generally serving for a term of two years and only one class of directors being elected in each year. See Article 27 of the existing organizational documents. | | | The proposed organizational documents provide that the board of directors of New SpringBig will be divided into three classes, with each class generally serving for a term of three years and only one class of directors being elected in each year. See Article 5.2 of the proposed charter. |
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Removal for Cause (Organizational Documents Proposal C) | | | The existing organizational documents provide that any director may be removed from office (i) if prior to the consummation of a business combination, by an ordinary resolution of the holders of the Class B ordinary shares and (ii) if following the consummation of a business combination, by an ordinary resolution of the holders of ordinary shares. See Article 29 of the existing organizational documents. | | | The proposed charter provides that, any director may be removed from office at any time, but only for cause by the affirmative vote of the holders of at least two-thirds of the voting power of all then outstanding shares of capital stock entitled to vote generally in the election of directors, voting together as a single class. See Section 5.4 of the proposed charter. |
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Ability of Stockholder to Call a Special Meeting (Organizational Documents Proposal D) | | | The existing organizational documents do not permit the shareholders to call an extraordinary general meeting of Tuatara. See Article 20.1 and 20.3 of the existing organizational documents. | | | The proposed organizational documents provide that, subject to the rights, if any, of the holders of any outstanding series of Preferred Stock, the stockholders of New SpringBig are not permitted to call a special meeting. See Article 7.1 of the proposed charter and Section 2.2 of the proposed bylaws. |
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Action by Written Consent (Organizational Documents Proposal E) | | | The existing organizational documents provide that a resolution in writing signed by all the shareholders entitled to vote at general meetings shall be as valid and effective as if the same had been passed at a duly convened and held general meeting. See Article 22.3 of the existing organizational documents. | | | The proposed organizational documents provide that, any action required or permitted to be taken by New SpringBig stockholders must be effected by a duly called annual or special meeting of such stockholders and may not be effected by written consent of the stockholders. See Article 7.3 of the proposed charter and Section 2.9 of the proposed bylaws. |
| | | |
| | Existing Organizational Documents | | | Proposed Organizational Documents | |
Authorized Shares (Organizational Documents Proposal F) | | | Our existing organizational documents authorize the issuance of up to 200,000,000 Class A ordinary shares, 20,000,000 Class B ordinary shares, and 1,000,000 preferred shares, par value $0.0001 per share. See paragraph 5 of the existing organizational documents. | | | The proposed charter authorizes the issuance of shares of common stock and shares of preferred stock, each with a par value $0.0001 per share. See Article 4 of the proposed charter. |
• | Scenario 1 - Assuming No Redemptions: This presentation assumes that no Tuatara shareholders exercise redemption rights with respect to their Class A ordinary shares upon consummation of the business combination; and |
• | Scenario 2 - Assuming Maximum Redemptions: This presentation assumes that 19,700,054 shares of Tuatara Class A ordinary shares are redeemed for their pro rata share of the cash in the trust account. This presentation assumes that Tuatara shareholders exercise their redemption rights with respect to a maximum of 19,700,054 ordinary shares upon consummation of the business combination at a redemption price of approximately $10.00 per share. The maximum redemption amount reflects the maximum number of Tuatara public shares that can be redeemed without violating the conditions of the business combination agreement and the assumption that Tuatara’s Amended and Restated Memorandum and Articles of Association are amended such that they will not be required to maintain a minimum net tangible asset value of at least $5,000,001 at the time of the closing of the business combination, after giving effect to the payments to redeeming shareholders. Scenario 2 includes all adjustments contained in Scenario 1 and presents additional adjustments to reflect the effect of the maximum redemptions. Should Tuatara’s shareholders attempt to redeem more than the maximum amount of 19,700,054 ordinary shares, it would be in violation of the conditions of the business combination agreement and Tuatara would not proceed with the business combination. Should the proposal to amend Tuatara’s Amended and Restated Memorandum and Articles of Association such that Tuatara will not be required to maintain a minimum net tangible asset value of at least $5,000,001 at the time of the closing of the business combination not be approved, Tuatara would not proceed with the business combination. |
| | SpringBig | | | Tuatara | | | Pro Forma Combined Scenario 1 Assuming No Redemptions into Cash | | | Pro Forma Combined Scenario 2 Assuming Maximum Redemptions into Cash | |
Statement of Operations Data – Year Ended December 31, 2021 | | | | | | | | | ||||
Revenues | | | $24,024 | | | $— | | | $24,024 | | | $24,024 |
Gross profit | | | $17,095 | | | $— | | | $17,095 | | | $17,095 |
Operating loss | | | $(6,532) | | | $(2,035) | | | $(16,237) | | | $(16,237) |
Net (loss) income | | | $(5,750) | | | $7,707 | | | $(7,825) | | | $(7,825) |
Net (loss) income per share – basic | | | $(0.43) | | | $0.35 | | | $(0.17) | | | $(0.30) |
Net (loss) income per share – diluted | | | $(0.43) | | | $0.34 | | | $(0.17) | | | $(0.30) |
| | | | | | | | |||||
Balance Sheet Data – As of December 31, 2021 | | | | | | | | | ||||
Total current assets | | | $6,479 | | | $881 | | | $214,271 | | | $17,235 |
Total assets | | | $7,043 | | | $200,917 | | | $214,835 | | | $17,799 |
Total current liabilities | | | $2,584 | | | $1,663 | | | $2,692 | | | $2,692 |
Total liabilities | | | $2,584 | | | $18,103 | | | $20,299 | | | $20,299 |
Temporary equity | | | $— | | | $200,000 | | | $— | | | $— |
Total shareholders’ equity (deficit) | | | $4,459 | | | $(17,186) | | | $194,536 | | | $(2,500) |
(in thousands, except share and per share data) | | | SpringBig | | | Tuatara | | | Pro Forma Combined Assuming No Redemptions into Cash | | | Pro Forma Combined Assuming Maximum Redemptions into Cash |
Year Ended December 31, 2021 | | | | | | | | | ||||
Net (loss) income | | | $(5,750) | | | $7,707 | | | $(7,825) | | | $(7,825) |
Shareholders’ equity (deficit) | | | 4,459 | | | (17,186) | | | 194,536 | | | (2,500) |
Weighted average shares outstanding – basic | | | 13,385,267 | | | 22,287,671 | | | 46,810,000 | | | 26,409,892 |
Basic net (loss) income per share | | | (0.43) | | | 0.35 | | | (0.17) | | | (0.30) |
Weighted average shares outstanding – diluted | | | 13,385,267 | | | 22,369,863 | | | 46,810,000 | | | 26,409,892 |
Diluted net (loss) income per share | | | (0.43) | | | 0.34 | | | (0.17) | | | (0.30) |
| | | | | | | | |||||
Book value per share – basic and diluted | | | 0.33 | | | (0.77) | | | 4.16 | | | 0.09 |
| | | | | | | | |||||
Cash dividends declared per share – basic and diluted | | | — | | | — | | | — | | | — |
○ | The Share Conversion Ratio is determined by dividing (i) $215 million by (ii) the aggregate number of issued and outstanding SpringBig capital stock as of immediately prior to the effective time of the business combination and the aggregate number of SpringBig shares issuable upon the exercise of all SpringBig vested stock options (calculated using the treasury method of accounting) to determine the “Per Share Equity Value” and then dividing the Per Share Equity Value by $10.00. |
(i) | If the Earnout Trigger Event occurs prior to the one-year anniversary of the effective time and results in an Earnout Trigger Price that is greater than $10.00, but less than $12.00, then only a portion of the First Tranche Shares shall be issued to the SpringBig shareholders and Engaged Option Holders equal to the First Tranche Shares multiplied by a fraction calculated as: (A) the numerator of which shall be the Earnout Trigger Price minus $10 and (B) the denominator of which is 2. |
(ii) | If the Earnout Trigger Event occurs after the one-year anniversary of the Closing Date and results in an Earnout Trigger Price that is less than $12.00, then none of the Contingent Shares shall be issued. |
(iii) | If the Earnout Trigger Event occurs at any time during the 60 months following the effective time and results in an Earnout Trigger Price that is equal to or greater than $15.00, but less than $18.00, then only the First Tranche Shares and Second Tranche Shares shall be issued to the SpringBig shareholders and Engaged Option Holders. |
(iv) | If the Earnout Trigger Event occurs at any time during the 60 months following the effective time and results in an Earnout Trigger Price equal to or greater than $18.00, then all of the Contingent Shares shall be issued to the SpringBig shareholders and Engaged Option Holders. |
| | Existing Organizational Documents | | | Proposed Organizational Documents | |
Corporate Name (Organizational Documents Proposal A) | | | The existing organizational documents provide the name of the company is “Tuatara Capital Acquisition Corporation” See paragraph 1 of the existing organizational documents. | | | The proposed organizational documents provide the new name of the corporation to be “ .” See Article 1 of the proposed charter. |
| | | | |||
Exclusive Forum (Organizational Documents Proposal A) | | | The existing organizational documents do not contain a provision adopting an exclusive forum for certain shareholder litigation. | | | The proposed organizational documents adopt Delaware as the exclusive forum for certain stockholder litigation. See Article 11 of the proposed charter. |
| | | | |||
Perpetual Existence (Organizational Documents Proposal A) | | | The existing organizational documents provide that if we do not consummate a business combination (as defined in our existing organizational documents) by February 17, 2023, Tuatara will cease all operations except for the purposes of winding-up, liquidation and dissolution and shall redeem the shares issued in its initial public offering and liquidate its trust account. See Article 49.7 of the existing organizational documents. | | | The proposed organizational documents do not contain a provision with regard to the cessation of operations if we do not consummate a business combination by February 17, 2023 and New SpringBig’s existence will be perpetual. |
| | | | |||
Provisions Related to Status as Blank Check Company (Organizational Documents Proposal A) | | | The existing organizational documents set forth various provisions related to our status as a blank check company prior to the consummation of a business combination. See Article 49 of the existing organizational documents. | | | The proposed organizational documents do not include provisions related to our status as a blank check company prior to the consummation of a business combination. |
| | | | |||
Waiver of Corporate Opportunities (Organizational Documents Proposal A) | | | The existing organizational documents do not provide an explicit waiver of corporate opportunities for Tuatara or its directors. | | | The proposed organizational documents provide an explicit waiver of corporate opportunities for New SpringBig and its officers or directors, subject to certain exceptions. See Article 9 of the proposed charter. |
| | Existing Organizational Documents | | | Proposed Organizational Documents | |
Classified Board of Directors (Organizational Documents Proposal B) | | | The existing organizational documents provide that the board of directors will be divided into two classes, with each class generally serving for a term of two years and only one class of directors being elected in each year. See Article 27 of the existing organizational documents. | | | The proposed organizational documents provide that the board of directors of New SpringBig will be divided into three classes, with each class generally serving for a term of three years and only one class of directors being elected in each year. See Article 5.2 of the proposed charter. |
| | | | |||
Removal for Cause (Organizational Documents Proposal C) | | | The existing organizational documents provide that any director may be removed from office (i) if prior to the consummation of a business combination, by an ordinary resolution of the holders of the Class B ordinary shares and (ii) if following the consummation of a business combination, by an ordinary resolution of the holders of ordinary shares. See Article 29 of the existing organizational documents. | | | The proposed charter provides that, any director may be removed from office at any time, but only for cause by the affirmative vote of the holders of at least two-thirds of the voting power of all then outstanding shares of capital stock entitled to vote generally in the election of directors, voting together as a single class. See Section 5.4 of the proposed charter. |
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Ability of Stockholder to Call a Special Meeting (Organizational Documents Proposal D) | | | The existing organizational documents do not permit the shareholders to call an extraordinary general meeting of Tuatara. See Article 20.1 and 20.3 of the existing organizational documents. | | | The proposed organizational documents provide that, subject to the rights, if any, of the holders of any outstanding series of Preferred Stock, the stockholders of New SpringBig are not permitted to call a special meeting. See Article 7.1 of the proposed charter and Section 2.2 of the proposed bylaws. |
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Action by Written Consent (Organizational Documents Proposal E) | | | The existing organizational documents provide that a resolution in writing signed by all the shareholders entitled to vote at general meetings shall be as valid and effective as if the same had been passed at a duly convened and held general meeting. See Article 22.3 of the existing organizational documents. | | | The proposed organizational documents provide that, any action required or permitted to be taken by New SpringBig stockholders must be effected by a duly called annual or special meeting of such stockholders and may not be effected by written consent of the stockholders. See Article 7.3 of the proposed charter and Section 2.9 of the proposed bylaws. |
| | | |
| | Existing Organizational Documents | | | Proposed Organizational Documents | |
Authorized Shares (Organizational Documents Proposal F) | | | Our existing organizational documents authorize the issuance of up to 200,000,000 Class A ordinary shares, 20,000,000 Class B ordinary shares, and 1,000,000 preferred shares, par value $0.0001 per share. See paragraph 5 of the existing organizational documents. | | | The proposed charter authorizes the issuance of shares of common stock and shares of preferred stock, each with a par value $0.0001 per share. See Article 4 of the proposed charter. |
• | Scenario 1 - Assuming No Redemptions: This presentation assumes that no Tuatara shareholders exercise redemption rights with respect to their Class A ordinary shares upon consummation of the business combination; and |
• | Scenario 2 - Assuming Maximum Redemptions: This presentation assumes that 19,700,054 shares of Tuatara Class A ordinary shares are redeemed for their pro rata share of the cash in the trust account. This presentation assumes that Tuatara shareholders exercise their redemption rights with respect to a maximum of 19,700,054 ordinary shares upon consummation of the business combination at a redemption price of approximately $10.00 per share. The maximum redemption amount reflects the maximum number of Tuatara public shares that can be redeemed without violating the conditions of the business combination agreement and the assumption that Tuatara’s Amended and Restated Memorandum and Articles of Association are amended such that they will not be required to maintain a minimum net tangible asset value of at least $5,000,001 at the time of the closing of the business combination, after giving effect to the payments to redeeming shareholders. Scenario 2 includes all adjustments contained in Scenario 1 and presents additional adjustments to reflect the effect of the maximum redemptions. Should Tuatara’s shareholders attempt to redeem more than the maximum amount of 19,700,054 ordinary shares, it would be in violation of the conditions of the business combination agreement and Tuatara would not proceed with the business combination. Should the proposal to amend Tuatara’s Amended and Restated Memorandum and Articles of Association such that Tuatara will not be required to maintain a minimum net tangible asset value of at least $5,000,001 at the time of the closing of the business combination not be approved, Tuatara would not proceed with the business combination. |
| | SpringBig | | | Tuatara | | | Pro Forma Combined Scenario 1 Assuming No Redemptions into Cash | | | Pro Forma Combined Scenario 2 Assuming Maximum Redemptions into Cash | |
Statement of Operations Data – Year Ended December 31, 2021 | | | | | | | | | ||||
Revenues | | | $24,024 | | | $— | | | $24,024 | | | $24,024 |
Gross profit | | | $17,095 | | | $— | | | $17,095 | | | $17,095 |
Operating loss | | | $(6,532) | | | $(2,035) | | | $(16,237) | | | $(16,237) |
Net (loss) income | | | $(5,750) | | | $7,707 | | | $(7,825) | | | $(7,825) |
Net (loss) income per share – basic | | | $(0.43) | | | $0.35 | | | $(0.17) | | | $(0.30) |
Net (loss) income per share – diluted | | | $(0.43) | | | $0.34 | | | $(0.17) | | | $(0.30) |
| | | | | | | | |||||
Balance Sheet Data – As of December 31, 2021 | | | | | | | | | ||||
Total current assets | | | $6,479 | | | $881 | | | $214,271 | | | $17,235 |
Total assets | | | $7,043 | | | $200,917 | | | $214,835 | | | $17,799 |
Total current liabilities | | | $2,584 | | | $1,663 | | | $2,692 | | | $2,692 |
Total liabilities | | | $2,584 | | | $18,103 | | | $20,299 | | | $20,299 |
Temporary equity | | | $— | | | $200,000 | | | $— | | | $— |
Total shareholders’ equity (deficit) | | | $4,459 | | | $(17,186) | | | $194,536 | | | $(2,500) |
(in thousands, except share and per share data) | | | SpringBig | | | Tuatara | | | Pro Forma Combined Assuming No Redemptions into Cash | | | Pro Forma Combined Assuming Maximum Redemptions into Cash |
Year Ended December 31, 2021 | | | | | | | | | ||||
Net (loss) income | | | $(5,750) | | | $7,707 | | | $(7,825) | | | $(7,825) |
Shareholders’ equity (deficit) | | | 4,459 | | | (17,186) | | | 194,536 | | | (2,500) |
Weighted average shares outstanding – basic | | | 13,385,267 | | | 22,287,671 | | | 46,810,000 | | | 26,409,892 |
Basic net (loss) income per share | | | (0.43) | | | 0.35 | | | (0.17) | | | (0.30) |
Weighted average shares outstanding – diluted | | | 13,385,267 | | | 22,369,863 | | | 46,810,000 | | | 26,409,892 |
Diluted net (loss) income per share | | | (0.43) | | | 0.34 | | | (0.17) | | | (0.30) |
| | | | | | | | |||||
Book value per share – basic and diluted | | | 0.33 | | | (0.77) | | | 4.16 | | | 0.09 |
| | | | | | | | |||||
Cash dividends declared per share – basic and diluted | | | — | | | — | | | — | | | — |
○ | The Share Conversion Ratio is determined by dividing (i) $215 million by (ii) the aggregate number of issued and outstanding SpringBig capital stock as of immediately prior to the effective time of the business combination and the aggregate number of SpringBig shares issuable upon the exercise of all SpringBig vested stock options (calculated using the treasury method of accounting) to determine the “Per Share Equity Value” and then dividing the Per Share Equity Value by $10.00. |
(i) | If the Earnout Trigger Event occurs prior to the one-year anniversary of the effective time and results in an Earnout Trigger Price that is greater than $10.00, but less than $12.00, then only a portion of the First Tranche Shares shall be issued to the SpringBig shareholders and Engaged Option Holders equal to the First Tranche Shares multiplied by a fraction calculated as: (A) the numerator of which shall be the Earnout Trigger Price minus $10 and (B) the denominator of which is 2. |
(ii) | If the Earnout Trigger Event occurs after the one-year anniversary of the Closing Date and results in an Earnout Trigger Price that is less than $12.00, then none of the Contingent Shares shall be issued. |
(iii) | If the Earnout Trigger Event occurs at any time during the 60 months following the effective time and results in an Earnout Trigger Price that is equal to or greater than $15.00, but less than $18.00, then only the First Tranche Shares and Second Tranche Shares shall be issued to the SpringBig shareholders and Engaged Option Holders. |
(iv) | If the Earnout Trigger Event occurs at any time during the 60 months following the effective time and results in an Earnout Trigger Price equal to or greater than $18.00, then all of the Contingent Shares shall be issued to the SpringBig shareholders and Engaged Option Holders. |
• | Market leaders: Leading companies by sales, geographic reach, or innovation, in our target sub-sectors; |
• | Institutional-level operations and financial controls: Companies that have the underlying infrastructure and operations to build a public company platform; |
• | Established growth: Rapidly growing businesses with a proven financial track record or demonstrated success in business model; |
• | Scalability: Companies with a clear strategy and demonstrated pathway to scale in their respective state markets and beyond; |
• | Exceptional managers: Talented management teams with integrity that seek to increase their companies’ growth trajectories and be trailblazing innovators; and |
• | Opportunity for value creation: Like-minded operators open to strategic resources and influence at the board level. |
○ | Twilio Inc. |
○ | HubSpot, Inc. |
○ | Qualtrics International Inc. |
○ | Squarespace, Inc. |
○ | Sprout Social, Inc. |
○ | DoubleVerify Holdings, Inc. |
○ | Freshworks Inc. |
○ | Adobe Inc. |
○ | Shopify Inc. |
○ | Coupa Software Incorporated |
○ | Lightspeed Commerce Inc. |
○ | Global-e Online ltd. |
○ | Olo Inc. |
○ | Sprinklr, Inc. |
○ | BigCommerce Holdings, Inc. |
○ | Similarweb Ltd. |
○ | Toast, Inc. |
○ | DocuSign, Inc. |
○ | UiPath Inc. |
○ | Bill.com Holdings, Inc. |
○ | Asana, Inc. |
○ | Avalara, Inc. |
○ | Procore Technologies, Inc. |
○ | ZoomInfo Technologies Inc. |
○ | monday.com Ltd |
○ | Anaplan, Inc. |
○ | BlackLine, Inc. |
○ | Everbridge, Inc. |
○ | Smartsheet Inc. |
○ | WalkMe Ltd. |
○ | WM Technology, Inc. |
○ | Leafly Holdings Inc. |
| | | EV / 2023 Revenue | | ||||
| | | Median | | | Mean | | |
| Cannabis Software | | | 4.0x | | | 4.0x | |
| Marketing / Customer Engagement | | | 7.3x | | | 8.1x | |
| Commerce / POS | | | 6.0x | | | 6.5x | |
| SaaS Software | | | 8.5x | | | 10.1x | |
| Overall | | | 7.3x | | | 8.2x | |
• | Category Leading Customer Loyalty and Marketing Automation Platform. We view SpringBig as a leading customer loyalty and marketing platform that addresses a large, rapidly growing, highly regulated and fragmented cannabis end market. |
• | High Growth Recurring Software-as-a-Service (“SaaS”) Business Model with “Sticky” Customer Base. SpringBig’s customer base includes both the largest cannabis enterprise clients and small to medium businesses. SpringBig has demonstrated the ability to expand existing relationships with customers resulting in high net revenue retention and low customer churn. |
• | High Growth Business with Multiple Channels for Organic Growth. SpringBig’s business model serving its retail customers is positively correlated with the growth rate of additional states’ legalization of cannabis, thereby increasing both the consumer base and their corresponding spend. SpringBig anticipates capturing marketing spend from cannabis brands as their offerings of branded products increases. In addition, when legally permissible, SpringBig will have the potential for gross merchandise value monetization from its customers. |
• | Significant Market Opportunity. The addressable market for cannabis products and services is substantial, with U.S. retail sales of cannabis in 2020 reaching approximately $20 billion. The U.S. cannabis market has been projected to double over the next five years. |
• | Powerful Data. SpringBig develops unique and increasing volumes of data assets that power insights for its customers in a high growth industry. |
• | Consolidation Opportunity. Opportunity to create the leading marketing technology platform in cannabis through the execution of a successful M&A strategy in a fragmented technology ecosystem. |
• | Proven Management Team. SpringBig has an experienced management team with a proven track record of operational excellence. We believe that the management team has deep industry knowledge and strategic vision and also believe that the Tuatara and SpringBig teams will form a collaborative and effective long-term partnership that is positioned to create and enhance stockholder value going forward. |
• | Favorable Entry Valuation and Financial Metrics. The proposed enterprise value of $275 million implies a 4.3x multiple to 2023 estimated revenues, which compares favorably with trading multiples of companies deemed comparable to SpringBig in certain aspects. These include marketing/customer engagement software, vertical SaaS software, and commerce/POS software, which we observed to trade at an average of 8.1x, 10.1x, and 6.5x of an enterprise value to 2023 estimated revenue multiple, respectively. |
• | Strong Sponsorship. Following the closing, Tuatara is expected to have long-term blue chip shareholders and a permanent capital and public platform suitable for its long-term success, providing stability to all stakeholders. |
• | Equity Investment. $13,100,000 of private capital from affiliates of Tuatara and SpringBig has been committed, which indicates strong support from parties knowledgeable about the business of the company. |
• | Terms of the Merger Agreement. Our board of directors reviewed the financial and other terms and conditions of the merger agreement and determined that they were reasonable and were the product of arm’s-length negotiations among the parties. |
• | Shareholder Approval. Our board of directors considered the fact that in connection with the business combination our shareholders have the option to (i) remain shareholders of Tuatara, (ii) sell their shares on the open market or (iii) redeem their shares for the per share amount held in the trust account. |
• | Independent Director Role. Our board of directors is comprised of a majority of independent directors who are not affiliated with our sponsor and its affiliates. In connection with the business combination, our independent directors took an active role in evaluating the proposed terms of the business combination, including the merger agreement and the related agreements. Our independent directors evaluated and unanimously approved, as members of our board of directors, the merger agreement and the related agreements and the transactions contemplated thereby. |
• | Other Alternatives. Our board of directors’ belief is that the business combination represents the best potential business combination for Tuatara based upon the process utilized to evaluate and assess other potential acquisition targets, and our board of directors’ and management’s belief that such processes did not present a better alternative. |
| | Existing Organizational Documents | | | Proposed Organizational Documents | |
Corporate Name (Organizational Documents Proposal A) | | | The existing organizational documents provide the name of the company is “Tuatara Capital Acquisition Corporation” See paragraph 1 of the existing organizational documents. | | | The proposed organizational documents provide the new name of the corporation to be “ .” See Article 1 of the proposed charter. |
| | | | |||
Exclusive Forum (Organizational Documents Proposal A) | | | The existing organizational documents do not contain a provision adopting an exclusive forum for certain shareholder litigation. | | | The proposed organizational documents adopt Delaware as the exclusive forum for certain stockholder litigation. See Article 11 of the proposed charter. |
| | | | |||
Perpetual Existence (Organizational Documents Proposal A) | | | The existing organizational documents provide that if we do not consummate a business combination (as defined in our existing organizational documents) by February 17, 2023, Tuatara will cease all operations except for the purposes of winding-up, liquidation and dissolution and shall redeem the shares issued in its initial public offering and liquidate its trust account. See Article 49.7 of the existing organizational documents. | | | The proposed organizational documents do not contain a provision with regard to the cessation of operations if we do not consummate a business combination by February 17, 2023 and New SpringBig’s existence will be perpetual. |
| | | | |||
Provisions Related to Status as Blank Check Company (Organizational Documents Proposal A) | | | The existing organizational documents set forth various provisions related to our status as a blank check company prior to the consummation of a business combination. See Article 49 of the existing organizational documents. | | | The proposed organizational documents do not include provisions related to our status as a blank check company prior to the consummation of a business combination. |
| | | | |||
Waiver of Corporate Opportunities (Organizational Documents Proposal A) | | | The existing organizational documents do not provide an explicit waiver of corporate opportunities for Tuatara or its directors. | | | The proposed organizational documents provide an explicit waiver of corporate opportunities for New SpringBig and its officers or directors, subject to certain exceptions. See Article 9 of the proposed charter. |
| | Existing Organizational Documents | | | Proposed Organizational Documents | |
Classified Board of Directors (Organizational Documents Proposal B) | | | The existing organizational documents provide that the board of directors will be divided into two classes, with each class generally serving for a term of two years and only one class of directors being elected in each year. See Article 27 of the existing organizational documents. | | | The proposed organizational documents provide that the board of directors of New SpringBig will be divided into three classes, with each class generally serving for a term of three years and only one class of directors being elected in each year. See Article 5.2 of the proposed charter. |
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Removal for Cause (Organizational Documents Proposal C) | | | The existing organizational documents provide that any director may be removed from office (i) if prior to the consummation of a business combination, by an ordinary resolution of the holders of the Class B ordinary shares and (ii) if following the consummation of a business combination, by an ordinary resolution of the holders of ordinary shares. See Article 29 of the existing organizational documents. | | | The proposed charter provides that, any director may be removed from office at any time, but only for cause by the affirmative vote of the holders of at least two-thirds of the voting power of all then outstanding shares of capital stock entitled to vote generally in the election of directors, voting together as a single class. See Section 5.4 of the proposed charter. |
| | | | |||
Ability of Stockholder to Call a Special Meeting (Organizational Documents Proposal D) | | | The existing organizational documents do not permit the shareholders to call an extraordinary general meeting of Tuatara. See Article 20.1 and 20.3 of the existing organizational documents. | | | The proposed organizational documents provide that, subject to the rights, if any, of the holders of any outstanding series of Preferred Stock, the stockholders of New SpringBig are not permitted to call a special meeting. See Article 7.1 of the proposed charter and Section 2.2 of the proposed bylaws. |
| | | | |||
Action by Written Consent (Organizational Documents Proposal E) | | | The existing organizational documents provide that a resolution in writing signed by all the shareholders entitled to vote at general meetings shall be as valid and effective as if the same had been passed at a duly convened and held general meeting. See Article 22.3 of the existing organizational documents. | | | The proposed organizational documents provide that, any action required or permitted to be taken by New SpringBig stockholders must be effected by a duly called annual or special meeting of such stockholders and may not be effected by written consent of the stockholders. See Article 7.3 of the proposed charter and Section 2.9 of the proposed bylaws. |
| | | |
| | Existing Organizational Documents | | | Proposed Organizational Documents | |
Authorized Shares (Organizational Documents Proposal F) | | | Our existing organizational documents authorize the issuance of up to 200,000,000 Class A ordinary shares, 20,000,000 Class B ordinary shares, and 1,000,000 preferred shares, par value $0.0001 per share. See paragraph 5 of the existing organizational documents. | | | The proposed charter authorizes the issuance of shares of common stock and shares of preferred stock, each with a par value $0.0001 per share. See Article 4 of the proposed charter. |
• | Scenario 1 - Assuming No Redemptions: This presentation assumes that no Tuatara shareholders exercise redemption rights with respect to their Class A ordinary shares upon consummation of the business combination; and |
• | Scenario 2 - Assuming Maximum Redemptions: This presentation assumes that 19,700,054 shares of Tuatara Class A ordinary shares are redeemed for their pro rata share of the cash in the trust account. This presentation assumes that Tuatara shareholders exercise their redemption rights with respect to a maximum of 19,700,054 ordinary shares upon consummation of the business combination at a redemption price of approximately $10.00 per share. The maximum redemption amount reflects the maximum number of Tuatara public shares that can be redeemed without violating the conditions of the business combination agreement and the assumption that Tuatara’s Amended and Restated Memorandum and Articles of Association are amended such that they will not be required to maintain a minimum net tangible asset value of at least $5,000,001 at the time of the closing of the business combination, after giving effect to the payments to redeeming shareholders. Scenario 2 includes all adjustments contained in Scenario 1 and presents additional adjustments to reflect the effect of the maximum redemptions. Should Tuatara’s shareholders attempt to redeem more than the maximum amount of 19,700,054 ordinary shares, it would be in violation of the conditions of the business combination agreement and Tuatara would not proceed with the business combination. Should the proposal to amend Tuatara’s Amended and Restated Memorandum and Articles of Association such that Tuatara will not be required to maintain a minimum net tangible asset value of at least $5,000,001 at the time of the closing of the business combination not be approved, Tuatara would not proceed with the business combination. |
| | SpringBig | | | Tuatara | | | Pro Forma Combined Scenario 1 Assuming No Redemptions into Cash | | | Pro Forma Combined Scenario 2 Assuming Maximum Redemptions into Cash | |
Statement of Operations Data – Year Ended December 31, 2021 | | | | | | | | | ||||
Revenues | | | $24,024 | | | $— | | | $24,024 | | | $24,024 |
Gross profit | | | $17,095 | | | $— | | | $17,095 | | | $17,095 |
Operating loss | | | $(6,532) | | | $(2,035) | | | $(16,237) | | | $(16,237) |
Net (loss) income | | | $(5,750) | | | $7,707 | | | $(7,825) | | | $(7,825) |
Net (loss) income per share – basic | | | $(0.43) | | | $0.35 | | | $(0.17) | | | $(0.30) |
Net (loss) income per share – diluted | | | $(0.43) | | | $0.34 | | | $(0.17) | | | $(0.30) |
| | | | | | | | |||||
Balance Sheet Data – As of December 31, 2021 | | | | | | | | | ||||
Total current assets | | | $6,479 | | | $881 | | | $214,271 | | | $17,235 |
Total assets | | | $7,043 | | | $200,917 | | | $214,835 | | | $17,799 |
Total current liabilities | | | $2,584 | | | $1,663 | | | $2,692 | | | $2,692 |
Total liabilities | | | $2,584 | | | $18,103 | | | $20,299 | | | $20,299 |
Temporary equity | | | $— | | | $200,000 | | | $— | | | $— |
Total shareholders’ equity (deficit) | | | $4,459 | | | $(17,186) | | | $194,536 | | | $(2,500) |
(in thousands, except share and per share data) | | | SpringBig | | | Tuatara | | | Pro Forma Combined Assuming No Redemptions into Cash | | | Pro Forma Combined Assuming Maximum Redemptions into Cash |
Year Ended December 31, 2021 | | | | | | | | | ||||
Net (loss) income | | | $(5,750) | | | $7,707 | | | $(7,825) | | | $(7,825) |
Shareholders’ equity (deficit) | | | 4,459 | | | (17,186) | | | 194,536 | | | (2,500) |
Weighted average shares outstanding – basic | | | 13,385,267 | | | 22,287,671 | | | 46,810,000 | | | 26,409,892 |
Basic net (loss) income per share | | | (0.43) | | | 0.35 | | | (0.17) | | | (0.30) |
Weighted average shares outstanding – diluted | | | 13,385,267 | | | 22,369,863 | | | 46,810,000 | | | 26,409,892 |
Diluted net (loss) income per share | | | (0.43) | | | 0.34 | | | (0.17) | | | (0.30) |
| | | | | | | | |||||
Book value per share – basic and diluted | | | 0.33 | | | (0.77) | | | 4.16 | | | 0.09 |
| | | | | | | | |||||
Cash dividends declared per share – basic and diluted | | | — | | | — | | | — | | | — |
($ in millions) | | | 2021E | | | 2022E | | | 2023E | | | 2024E |
Retail Revenue | | | $23.2 | | | $35.3 | | | $55.1 | | | $85.2 |
Brands Revenue | | | 0.8 | | | 3.1 | | | 8.2 | | | 19.1 |
Total Revenue | | | $24.0 | | | $38.2 | | | $63.3 | | | $104.3 |
% Growth | | | 58% | | | 60% | | | 65% | | | 65% |
Gross Profit | | | $17.4 | | | $29.5 | | | $49.4 | | | $81.4 |
% Margin | | | 73% | | | 77% | | | 78% | | | 78% |
Operating Expenses(1) | | | (22.1) | | | (31.8) | | | (40.1) | | | (52.9) |
EBITDA(2) | | | $(4.6) | | | ($2.2) | | | $9.2 | | | $28.4 |
% Margin | | | (15%) | | | (6%) | | | 15% | | | 27% |
○ | The Share Conversion Ratio is determined by dividing (i) $215 million by (ii) the aggregate number of issued and outstanding SpringBig capital stock as of immediately prior to the effective time of the business combination and the aggregate number of SpringBig shares issuable upon the exercise of all SpringBig vested stock options (calculated using the treasury method of accounting) to determine the “Per Share Equity Value” and then dividing the Per Share Equity Value by $10.00. |
(i) | If the Earnout Trigger Event occurs prior to the one-year anniversary of the effective time and results in an Earnout Trigger Price that is greater than $10.00, but less than $12.00, then only a portion of the First Tranche Shares shall be issued to the SpringBig shareholders and Engaged Option Holders equal to the First Tranche Shares multiplied by a fraction calculated as: (A) the numerator of which shall be the Earnout Trigger Price minus $10 and (B) the denominator of which is 2. |
(ii) | If the Earnout Trigger Event occurs after the one-year anniversary of the Closing Date and results in an Earnout Trigger Price that is less than $12.00, then none of the Contingent Shares shall be issued. |
(iii) | If the Earnout Trigger Event occurs at any time during the 60 months following the effective time and results in an Earnout Trigger Price that is equal to or greater than $15.00, but less than $18.00, then only the First Tranche Shares and Second Tranche Shares shall be issued to the SpringBig shareholders and Engaged Option Holders. |
(iv) | If the Earnout Trigger Event occurs at any time during the 60 months following the effective time and results in an Earnout Trigger Price equal to or greater than $18.00, then all of the Contingent Shares shall be issued to the SpringBig shareholders and Engaged Option Holders. |
• | Market leaders: Leading companies by sales, geographic reach, or innovation, in our target sub-sectors; |
• | Institutional-level operations and financial controls: Companies that have the underlying infrastructure and operations to build a public company platform; |
• | Established growth: Rapidly growing businesses with a proven financial track record or demonstrated success in business model; |
• | Scalability: Companies with a clear strategy and demonstrated pathway to scale in their respective state markets and beyond; |
• | Exceptional managers: Talented management teams with integrity that seek to increase their companies’ growth trajectories and be trailblazing innovators; and |
• | Opportunity for value creation: Like-minded operators open to strategic resources and influence at the board level. |
○ | Twilio Inc. |
○ | HubSpot, Inc. |
○ | Qualtrics International Inc. |
○ | Squarespace, Inc. |
○ | Sprout Social, Inc. |
○ | DoubleVerify Holdings, Inc. |
○ | Freshworks Inc. |
○ | Adobe Inc. |
○ | Shopify Inc. |
○ | Coupa Software Incorporated |
○ | Lightspeed Commerce Inc. |
○ | Global-e Online ltd. |
○ | Olo Inc. |
○ | Sprinklr, Inc. |
○ | BigCommerce Holdings, Inc. |
○ | Similarweb Ltd. |
○ | Toast, Inc. |
○ | DocuSign, Inc. |
○ | UiPath Inc. |
○ | Bill.com Holdings, Inc. |
○ | Asana, Inc. |
○ | Avalara, Inc. |
○ | Procore Technologies, Inc. |
○ | ZoomInfo Technologies Inc. |
○ | monday.com Ltd |
○ | Anaplan, Inc. |
○ | BlackLine, Inc. |
○ | Everbridge, Inc. |
○ | Smartsheet Inc. |
○ | WalkMe Ltd. |
○ | WM Technology, Inc. |
○ | Leafly Holdings Inc. |
| | | EV / 2023 Revenue | | ||||
| | | Median | | | Mean | | |
| Cannabis Software | | | 4.0x | | | 4.0x | |
| Marketing / Customer Engagement | | | 7.3x | | | 8.1x | |
| Commerce / POS | | | 6.0x | | | 6.5x | |
| SaaS Software | | | 8.5x | | | 10.1x | |
| Overall | | | 7.3x | | | 8.2x | |
• | Category Leading Customer Loyalty and Marketing Automation Platform. We view SpringBig as a leading customer loyalty and marketing platform that addresses a large, rapidly growing, highly regulated and fragmented cannabis end market. |
• | High Growth Recurring Software-as-a-Service (“SaaS”) Business Model with “Sticky” Customer Base. SpringBig’s customer base includes both the largest cannabis enterprise clients and small to medium businesses. SpringBig has demonstrated the ability to expand existing relationships with customers resulting in high net revenue retention and low customer churn. |
• | High Growth Business with Multiple Channels for Organic Growth. SpringBig’s business model serving its retail customers is positively correlated with the growth rate of additional states’ legalization of cannabis, thereby increasing both the consumer base and their corresponding spend. SpringBig anticipates capturing marketing spend from cannabis brands as their offerings of branded products increases. In addition, when legally permissible, SpringBig will have the potential for gross merchandise value monetization from its customers. |
• | Significant Market Opportunity. The addressable market for cannabis products and services is substantial, with U.S. retail sales of cannabis in 2020 reaching approximately $20 billion. The U.S. cannabis market has been projected to double over the next five years. |
• | Powerful Data. SpringBig develops unique and increasing volumes of data assets that power insights for its customers in a high growth industry. |
• | Consolidation Opportunity. Opportunity to create the leading marketing technology platform in cannabis through the execution of a successful M&A strategy in a fragmented technology ecosystem. |
• | Proven Management Team. SpringBig has an experienced management team with a proven track record of operational excellence. We believe that the management team has deep industry knowledge and strategic vision and also believe that the Tuatara and SpringBig teams will form a collaborative and effective long-term partnership that is positioned to create and enhance stockholder value going forward. |
• | Favorable Entry Valuation and Financial Metrics. The proposed enterprise value of $275 million implies a 4.3x multiple to 2023 estimated revenues, which compares favorably with trading multiples of companies deemed comparable to SpringBig in certain aspects. These include marketing/customer engagement software, vertical SaaS software, and commerce/POS software, which we observed to trade at an average of 8.1x, 10.1x, and 6.5x of an enterprise value to 2023 estimated revenue multiple, respectively. |
• | Strong Sponsorship. Following the closing, Tuatara is expected to have long-term blue chip shareholders and a permanent capital and public platform suitable for its long-term success, providing stability to all stakeholders. |
• | Equity Investment. $13,100,000 of private capital from affiliates of Tuatara and SpringBig has been committed, which indicates strong support from parties knowledgeable about the business of the company. |
• | Terms of the Merger Agreement. Our board of directors reviewed the financial and other terms and conditions of the merger agreement and determined that they were reasonable and were the product of arm’s-length negotiations among the parties. |
• | Shareholder Approval. Our board of directors considered the fact that in connection with the business combination our shareholders have the option to (i) remain shareholders of Tuatara, (ii) sell their shares on the open market or (iii) redeem their shares for the per share amount held in the trust account. |
• | Independent Director Role. Our board of directors is comprised of a majority of independent directors who are not affiliated with our sponsor and its affiliates. In connection with the business combination, our independent directors took an active role in evaluating the proposed terms of the business combination, including the merger agreement and the related agreements. Our independent directors evaluated and unanimously approved, as members of our board of directors, the merger agreement and the related agreements and the transactions contemplated thereby. |
• | Other Alternatives. Our board of directors’ belief is that the business combination represents the best potential business combination for Tuatara based upon the process utilized to evaluate and assess other potential acquisition targets, and our board of directors’ and management’s belief that such processes did not present a better alternative. |
| | Existing Organizational Documents | | | Proposed Organizational Documents | |
Corporate Name (Organizational Documents Proposal A) | | | The existing organizational documents provide the name of the company is “Tuatara Capital Acquisition Corporation” See paragraph 1 of the existing organizational documents. | | | The proposed organizational documents provide the new name of the corporation to be “ .” See Article 1 of the proposed charter. |
| | | | |||
Exclusive Forum (Organizational Documents Proposal A) | | | The existing organizational documents do not contain a provision adopting an exclusive forum for certain shareholder litigation. | | | The proposed organizational documents adopt Delaware as the exclusive forum for certain stockholder litigation. See Article 11 of the proposed charter. |
| | | | |||
Perpetual Existence (Organizational Documents Proposal A) | | | The existing organizational documents provide that if we do not consummate a business combination (as defined in our existing organizational documents) by February 17, 2023, Tuatara will cease all operations except for the purposes of winding-up, liquidation and dissolution and shall redeem the shares issued in its initial public offering and liquidate its trust account. See Article 49.7 of the existing organizational documents. | | | The proposed organizational documents do not contain a provision with regard to the cessation of operations if we do not consummate a business combination by February 17, 2023 and New SpringBig’s existence will be perpetual. |
| | | | |||
Provisions Related to Status as Blank Check Company (Organizational Documents Proposal A) | | | The existing organizational documents set forth various provisions related to our status as a blank check company prior to the consummation of a business combination. See Article 49 of the existing organizational documents. | | | The proposed organizational documents do not include provisions related to our status as a blank check company prior to the consummation of a business combination. |
| | | | |||
Waiver of Corporate Opportunities (Organizational Documents Proposal A) | | | The existing organizational documents do not provide an explicit waiver of corporate opportunities for Tuatara or its directors. | | | The proposed organizational documents provide an explicit waiver of corporate opportunities for New SpringBig and its officers or directors, subject to certain exceptions. See Article 9 of the proposed charter. |
| | Existing Organizational Documents | | | Proposed Organizational Documents | |
Classified Board of Directors (Organizational Documents Proposal B) | | | The existing organizational documents provide that the board of directors will be divided into two classes, with each class generally serving for a term of two years and only one class of directors being elected in each year. See Article 27 of the existing organizational documents. | | | The proposed organizational documents provide that the board of directors of New SpringBig will be divided into three classes, with each class generally serving for a term of three years and only one class of directors being elected in each year. See Article 5.2 of the proposed charter. |
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Removal for Cause (Organizational Documents Proposal C) | | | The existing organizational documents provide that any director may be removed from office (i) if prior to the consummation of a business combination, by an ordinary resolution of the holders of the Class B ordinary shares and (ii) if following the consummation of a business combination, by an ordinary resolution of the holders of ordinary shares. See Article 29 of the existing organizational documents. | | | The proposed charter provides that, any director may be removed from office at any time, but only for cause by the affirmative vote of the holders of at least two-thirds of the voting power of all then outstanding shares of capital stock entitled to vote generally in the election of directors, voting together as a single class. See Section 5.4 of the proposed charter. |
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Ability of Stockholder to Call a Special Meeting (Organizational Documents Proposal D) | | | The existing organizational documents do not permit the shareholders to call an extraordinary general meeting of Tuatara. See Article 20.1 and 20.3 of the existing organizational documents. | | | The proposed organizational documents provide that, subject to the rights, if any, of the holders of any outstanding series of Preferred Stock, the stockholders of New SpringBig are not permitted to call a special meeting. See Article 7.1 of the proposed charter and Section 2.2 of the proposed bylaws. |
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Action by Written Consent (Organizational Documents Proposal E) | | | The existing organizational documents provide that a resolution in writing signed by all the shareholders entitled to vote at general meetings shall be as valid and effective as if the same had been passed at a duly convened and held general meeting. See Article 22.3 of the existing organizational documents. | | | The proposed organizational documents provide that, any action required or permitted to be taken by New SpringBig stockholders must be effected by a duly called annual or special meeting of such stockholders and may not be effected by written consent of the stockholders. See Article 7.3 of the proposed charter and Section 2.9 of the proposed bylaws. |
| | | |
| | Existing Organizational Documents | | | Proposed Organizational Documents | |
Authorized Shares (Organizational Documents Proposal F) | | | Our existing organizational documents authorize the issuance of up to 200,000,000 Class A ordinary shares, 20,000,000 Class B ordinary shares, and 1,000,000 preferred shares, par value $0.0001 per share. See paragraph 5 of the existing organizational documents. | | | The proposed charter authorizes the issuance of shares of common stock and shares of preferred stock, each with a par value $0.0001 per share. See Article 4 of the proposed charter. |
• | Scenario 1 - Assuming No Redemptions: This presentation assumes that no Tuatara shareholders exercise redemption rights with respect to their Class A ordinary shares upon consummation of the business combination; and |
• | Scenario 2 - Assuming Maximum Redemptions: This presentation assumes that 19,700,054 shares of Tuatara Class A ordinary shares are redeemed for their pro rata share of the cash in the trust account. This presentation assumes that Tuatara shareholders exercise their redemption rights with respect to a maximum of 19,700,054 ordinary shares upon consummation of the business combination at a redemption price of approximately $10.00 per share. The maximum redemption amount reflects the maximum number of Tuatara public shares that can be redeemed without violating the conditions of the business combination agreement and the assumption that Tuatara’s Amended and Restated Memorandum and Articles of Association are amended such that they will not be required to maintain a minimum net tangible asset value of at least $5,000,001 at the time of the closing of the business combination, after giving effect to the payments to redeeming shareholders. Scenario 2 includes all adjustments contained in Scenario 1 and presents additional adjustments to reflect the effect of the maximum redemptions. Should Tuatara’s shareholders attempt to redeem more than the maximum amount of 19,700,054 ordinary shares, it would be in violation of the conditions of the business combination agreement and Tuatara would not proceed with the business combination. Should the proposal to amend Tuatara’s Amended and Restated Memorandum and Articles of Association such that Tuatara will not be required to maintain a minimum net tangible asset value of at least $5,000,001 at the time of the closing of the business combination not be approved, Tuatara would not proceed with the business combination. |
| | SpringBig | | | Tuatara | | | Pro Forma Combined Scenario 1 Assuming No Redemptions into Cash | | | Pro Forma Combined Scenario 2 Assuming Maximum Redemptions into Cash | |
Statement of Operations Data – Year Ended December 31, 2021 | | | | | | | | | ||||
Revenues | | | $24,024 | | | $— | | | $24,024 | | | $24,024 |
Gross profit | | | $17,095 | | | $— | | | $17,095 | | | $17,095 |
Operating loss | | | $(6,532) | | | $(2,035) | | | $(16,237) | | | $(16,237) |
Net (loss) income | | | $(5,750) | | | $7,707 | | | $(7,825) | | | $(7,825) |
Net (loss) income per share – basic | | | $(0.43) | | | $0.35 | | | $(0.17) | | | $(0.30) |
Net (loss) income per share – diluted | | | $(0.43) | | | $0.34 | | | $(0.17) | | | $(0.30) |
| | | | | | | | |||||
Balance Sheet Data – As of December 31, 2021 | | | | | | | | | ||||
Total current assets | | | $6,479 | | | $881 | | | $214,271 | | | $17,235 |
Total assets | | | $7,043 | | | $200,917 | | | $214,835 | | | $17,799 |
Total current liabilities | | | $2,584 | | | $1,663 | | | $2,692 | | | $2,692 |
Total liabilities | | | $2,584 | | | $18,103 | | | $20,299 | | | $20,299 |
Temporary equity | | | $— | | | $200,000 | | | $— | | | $— |
Total shareholders’ equity (deficit) | | | $4,459 | | | $(17,186) | | | $194,536 | | | $(2,500) |
(in thousands, except share and per share data) | | | SpringBig | | | Tuatara | | | Pro Forma Combined Assuming No Redemptions into Cash | | | Pro Forma Combined Assuming Maximum Redemptions into Cash |
Year Ended December 31, 2021 | | | | | | | | | ||||
Net (loss) income | | | $(5,750) | | | $7,707 | | | $(7,825) | | | $(7,825) |
Shareholders’ equity (deficit) | | | 4,459 | | | (17,186) | | | 194,536 | | | (2,500) |
Weighted average shares outstanding – basic | | | 13,385,267 | | | 22,287,671 | | | 46,810,000 | | | 26,409,892 |
Basic net (loss) income per share | | | (0.43) | | | 0.35 | | | (0.17) | | | (0.30) |
Weighted average shares outstanding – diluted | | | 13,385,267 | | | 22,369,863 | | | 46,810,000 | | | 26,409,892 |
Diluted net (loss) income per share | | | (0.43) | | | 0.34 | | | (0.17) | | | (0.30) |
| | | | | | | | |||||
Book value per share – basic and diluted | | | 0.33 | | | (0.77) | | | 4.16 | | | 0.09 |
| | | | | | | | |||||
Cash dividends declared per share – basic and diluted | | | — | | | — | | | — | | | — |
○ | The Share Conversion Ratio is determined by dividing (i) $215 million by (ii) the aggregate number of issued and outstanding SpringBig capital stock as of immediately prior to the effective time of the business combination and the aggregate number of SpringBig shares issuable upon the exercise of all SpringBig vested stock options (calculated using the treasury method of accounting) to determine the “Per Share Equity Value” and then dividing the Per Share Equity Value by $10.00. |
(i) | If the Earnout Trigger Event occurs prior to the one-year anniversary of the effective time and results in an Earnout Trigger Price that is greater than $10.00, but less than $12.00, then only a portion of the First Tranche Shares shall be issued to the SpringBig shareholders and Engaged Option Holders equal to the First Tranche Shares multiplied by a fraction calculated as: (A) the numerator of which shall be the Earnout Trigger Price minus $10 and (B) the denominator of which is 2. |
(ii) | If the Earnout Trigger Event occurs after the one-year anniversary of the Closing Date and results in an Earnout Trigger Price that is less than $12.00, then none of the Contingent Shares shall be issued. |
(iii) | If the Earnout Trigger Event occurs at any time during the 60 months following the effective time and results in an Earnout Trigger Price that is equal to or greater than $15.00, but less than $18.00, then only the First Tranche Shares and Second Tranche Shares shall be issued to the SpringBig shareholders and Engaged Option Holders. |
(iv) | If the Earnout Trigger Event occurs at any time during the 60 months following the effective time and results in an Earnout Trigger Price equal to or greater than $18.00, then all of the Contingent Shares shall be issued to the SpringBig shareholders and Engaged Option Holders. |
• | Market leaders: Leading companies by sales, geographic reach, or innovation, in our target sub-sectors; |
• | Institutional-level operations and financial controls: Companies that have the underlying infrastructure and operations to build a public company platform; |
• | Established growth: Rapidly growing businesses with a proven financial track record or demonstrated success in business model; |
• | Scalability: Companies with a clear strategy and demonstrated pathway to scale in their respective state markets and beyond; |
• | Exceptional managers: Talented management teams with integrity that seek to increase their companies’ growth trajectories and be trailblazing innovators; and |
• | Opportunity for value creation: Like-minded operators open to strategic resources and influence at the board level. |
○ | Twilio Inc. |
○ | HubSpot, Inc. |
○ | Qualtrics International Inc. |
○ | Squarespace, Inc. |
○ | Sprout Social, Inc. |
○ | DoubleVerify Holdings, Inc. |
○ | Freshworks Inc. |
○ | Adobe Inc. |
○ | Shopify Inc. |
○ | Coupa Software Incorporated |
○ | Lightspeed Commerce Inc. |
○ | Global-e Online ltd. |
○ | Olo Inc. |
○ | Sprinklr, Inc. |
○ | BigCommerce Holdings, Inc. |
○ | Similarweb Ltd. |
○ | Toast, Inc. |
○ | DocuSign, Inc. |
○ | UiPath Inc. |
○ | Bill.com Holdings, Inc. |
○ | Asana, Inc. |
○ | Avalara, Inc. |
○ | Procore Technologies, Inc. |
○ | ZoomInfo Technologies Inc. |
○ | monday.com Ltd |
○ | Anaplan, Inc. |
○ | BlackLine, Inc. |
○ | Everbridge, Inc. |
○ | Smartsheet Inc. |
○ | WalkMe Ltd. |
○ | WM Technology, Inc. |
○ | Leafly Holdings Inc. |
| | | EV / 2023 Revenue | | ||||
| | | Median | | | Mean | | |
| Cannabis Software | | | 4.0x | | | 4.0x | |
| Marketing / Customer Engagement | | | 7.3x | | | 8.1x | |
| Commerce / POS | | | 6.0x | | | 6.5x | |
| SaaS Software | | | 8.5x | | | 10.1x | |
| Overall | | | 7.3x | | | 8.2x | |
• | Category Leading Customer Loyalty and Marketing Automation Platform. We view SpringBig as a leading customer loyalty and marketing platform that addresses a large, rapidly growing, highly regulated and fragmented cannabis end market. |
• | High Growth Recurring Software-as-a-Service (“SaaS”) Business Model with “Sticky” Customer Base. SpringBig’s customer base includes both the largest cannabis enterprise clients and small to medium businesses. SpringBig has demonstrated the ability to expand existing relationships with customers resulting in high net revenue retention and low customer churn. |
• | High Growth Business with Multiple Channels for Organic Growth. SpringBig’s business model serving its retail customers is positively correlated with the growth rate of additional states’ legalization of cannabis, thereby increasing both the consumer base and their corresponding spend. SpringBig anticipates capturing marketing spend from cannabis brands as their offerings of branded products increases. In addition, when legally permissible, SpringBig will have the potential for gross merchandise value monetization from its customers. |
• | Significant Market Opportunity. The addressable market for cannabis products and services is substantial, with U.S. retail sales of cannabis in 2020 reaching approximately $20 billion. The U.S. cannabis market has been projected to double over the next five years. |
• | Powerful Data. SpringBig develops unique and increasing volumes of data assets that power insights for its customers in a high growth industry. |
• | Consolidation Opportunity. Opportunity to create the leading marketing technology platform in cannabis through the execution of a successful M&A strategy in a fragmented technology ecosystem. |
• | Proven Management Team. SpringBig has an experienced management team with a proven track record of operational excellence. We believe that the management team has deep industry knowledge and strategic vision and also believe that the Tuatara and SpringBig teams will form a collaborative and effective long-term partnership that is positioned to create and enhance stockholder value going forward. |
• | Favorable Entry Valuation and Financial Metrics. The proposed enterprise value of $275 million implies a 4.3x multiple to 2023 estimated revenues, which compares favorably with trading multiples of companies deemed comparable to SpringBig in certain aspects. These include marketing/customer engagement software, vertical SaaS software, and commerce/POS software, which we observed to trade at an average of 8.1x, 10.1x, and 6.5x of an enterprise value to 2023 estimated revenue multiple, respectively. |
• | Strong Sponsorship. Following the closing, Tuatara is expected to have long-term blue chip shareholders and a permanent capital and public platform suitable for its long-term success, providing stability to all stakeholders. |
• | Equity Investment. $13,100,000 of private capital from affiliates of Tuatara and SpringBig has been committed, which indicates strong support from parties knowledgeable about the business of the company. |
• | Terms of the Merger Agreement. Our board of directors reviewed the financial and other terms and conditions of the merger agreement and determined that they were reasonable and were the product of arm’s-length negotiations among the parties. |
• | Shareholder Approval. Our board of directors considered the fact that in connection with the business combination our shareholders have the option to (i) remain shareholders of Tuatara, (ii) sell their shares on the open market or (iii) redeem their shares for the per share amount held in the trust account. |
• | Independent Director Role. Our board of directors is comprised of a majority of independent directors who are not affiliated with our sponsor and its affiliates. In connection with the business combination, our independent directors took an active role in evaluating the proposed terms of the business combination, including the merger agreement and the related agreements. Our independent directors evaluated and unanimously approved, as members of our board of directors, the merger agreement and the related agreements and the transactions contemplated thereby. |
• | Other Alternatives. Our board of directors’ belief is that the business combination represents the best potential business combination for Tuatara based upon the process utilized to evaluate and assess other potential acquisition targets, and our board of directors’ and management’s belief that such processes did not present a better alternative. |
($ in millions) | | | 2021E | | | 2022E | | | 2023E | | | 2024E |
Retail Revenue | | | $23.2 | | | $35.3 | | | $55.1 | | | $85.2 |
Brands Revenue | | | 0.8 | | | 3.1 | | | 8.2 | | | 19.1 |
Total Revenue | | | $24.0 | | | $38.2 | | | $63.3 | | | $104.3 |
% Growth | | | 58% | | | 60% | | | 65% | | | 65% |
Gross Profit | | | $17.4 | | | $29.5 | | | $49.4 | | | $81.4 |
% Margin | | | 73% | | | 77% | | | 78% | | | 78% |
Operating Expenses(1) | | | (22.1) | | | (31.8) | | | (40.1) | | | (52.9) |
EBITDA(2) | | | $(4.6) | | | ($2.2) | | | $9.2 | | | $28.4 |
% Margin | | | (15%) | | | (6%) | | | 15% | | | 27% |
(1) | Operating expenses include the estimated expenses and costs associated with being a public company. |
(2) | EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is a non-GAAP measure, with the closest GAAP metric being net income. EBITDA as set forth above excludes non-cash stock compensation expenses. |
Sources | | | | | Uses | | | ||
| | (in millions) | | | | | |||
Cash in trust | | | $200(1) | | | Equity issued to SpringBig | | | $215 |
SpringBig shareholder equity rollover | | | $215 | | | Cash to balance sheet | | | $203 |
PIPE subscription financing | | | $13 | | | Estimated transaction expenses | | | $20 |
Convertible note offering | | | $10 | | | | | ||
Total Sources | | | $438 | | | Total Uses | | | $438 |
(1) | Does not include interest earned on cash in trust. |
• | Scenario 1 - Assuming No Redemptions: This presentation assumes that no Tuatara shareholders exercise redemption rights with respect to their Class A ordinary shares upon consummation of the business combination; and |
• | Scenario 2 - Assuming Maximum Redemptions: This presentation assumes that 19,700,054 shares of Tuatara Class A ordinary shares are redeemed for their pro rata share of the cash in the trust account. This presentation assumes that Tuatara shareholders exercise their redemption rights with respect to a maximum of 19,700,054 ordinary shares upon consummation of the business combination at a redemption price of approximately $10.00 per share. The maximum redemption amount reflects the maximum number of Tuatara public shares that can be redeemed without violating the conditions of the business combination agreement and the assumption that Tuatara’s Amended and Restated Memorandum and Articles of Association are amended such that they will not be required to maintain a minimum net tangible asset value of at least $5,000,001 at the time of the closing of the business combination, after giving effect to the payments to redeeming shareholders. Scenario 2 includes all adjustments contained in Scenario 1 and presents additional adjustments to reflect the effect of the maximum redemptions. Should Tuatara’s shareholders attempt to redeem more than the maximum amount of 19,700,054 ordinary shares, it would be in violation of the conditions of the business combination agreement and Tuatara would not proceed with the business combination. Should the proposal to amend Tuatara’s Amended and Restated Memorandum and Articles of Association such that Tuatara will not be required to maintain a minimum net tangible asset value of at least $5,000,001 at the time of the closing of the business combination not be approved, Tuatara would not proceed with the business combination. |
| | SpringBig | | | Tuatara | | | Pro Forma Combined Scenario 1 Assuming No Redemptions into Cash | | | Pro Forma Combined Scenario 2 Assuming Maximum Redemptions into Cash | |
Statement of Operations Data – Year Ended December 31, 2021 | | | | | | | | | ||||
Revenues | | | $24,024 | | | $— | | | $24,024 | | | $24,024 |
Gross profit | | | $17,095 | | | $— | | | $17,095 | | | $17,095 |
Operating loss | | | $(6,532) | | | $(2,035) | | | $(16,237) | | | $(16,237) |
Net (loss) income | | | $(5,750) | | | $7,707 | | | $(7,825) | | | $(7,825) |
Net (loss) income per share – basic | | | $(0.43) | | | $0.35 | | | $(0.17) | | | $(0.30) |
Net (loss) income per share – diluted | | | $(0.43) | | | $0.34 | | | $(0.17) | | | $(0.30) |
| | | | | | | | |||||
Balance Sheet Data – As of December 31, 2021 | | | | | | | | | ||||
Total current assets | | | $6,479 | | | $881 | | | $214,271 | | | $17,235 |
Total assets | | | $7,043 | | | $200,917 | | | $214,835 | | | $17,799 |
Total current liabilities | | | $2,584 | | | $1,663 | | | $2,692 | | | $2,692 |
Total liabilities | | | $2,584 | | | $18,103 | | | $20,299 | | | $20,299 |
Temporary equity | | | $— | | | $200,000 | | | $— | | | $— |
Total shareholders’ equity (deficit) | | | $4,459 | | | $(17,186) | | | $194,536 | | | $(2,500) |
(in thousands, except share and per share data) | | | SpringBig | | | Tuatara | | | Pro Forma Combined Assuming No Redemptions into Cash | | | Pro Forma Combined Assuming Maximum Redemptions into Cash |
Year Ended December 31, 2021 | | | | | | | | | ||||
Net (loss) income | | | $(5,750) | | | $7,707 | | | $(7,825) | | | $(7,825) |
Shareholders’ equity (deficit) | | | 4,459 | | | (17,186) | | | 194,536 | | | (2,500) |
Weighted average shares outstanding – basic | | | 13,385,267 | | | 22,287,671 | | | 46,810,000 | | | 26,409,892 |
Basic net (loss) income per share | | | (0.43) | | | 0.35 | | | (0.17) | | | (0.30) |
Weighted average shares outstanding – diluted | | | 13,385,267 | | | 22,369,863 | | | 46,810,000 | | | 26,409,892 |
Diluted net (loss) income per share | | | (0.43) | | | 0.34 | | | (0.17) | | | (0.30) |
| | | | | | | | |||||
Book value per share – basic and diluted | | | 0.33 | | | (0.77) | | | 4.16 | | | 0.09 |
| | | | | | | | |||||
Cash dividends declared per share – basic and diluted | | | — | | | — | | | — | | | — |
○ | The Share Conversion Ratio is determined by dividing (i) $215 million by (ii) the aggregate number of issued and outstanding SpringBig capital stock as of immediately prior to the effective time of the business combination and the aggregate number of SpringBig shares issuable upon the exercise of all SpringBig vested stock options (calculated using the treasury method of accounting) to determine the “Per Share Equity Value” and then dividing the Per Share Equity Value by $10.00. |
(i) | If the Earnout Trigger Event occurs prior to the one-year anniversary of the effective time and results in an Earnout Trigger Price that is greater than $10.00, but less than $12.00, then only a portion of the First Tranche Shares shall be issued to the SpringBig shareholders and Engaged Option Holders equal to the First Tranche Shares multiplied by a fraction calculated as: (A) the numerator of which shall be the Earnout Trigger Price minus $10 and (B) the denominator of which is 2. |
(ii) | If the Earnout Trigger Event occurs after the one-year anniversary of the Closing Date and results in an Earnout Trigger Price that is less than $12.00, then none of the Contingent Shares shall be issued. |
(iii) | If the Earnout Trigger Event occurs at any time during the 60 months following the effective time and results in an Earnout Trigger Price that is equal to or greater than $15.00, but less than $18.00, then only the First Tranche Shares and Second Tranche Shares shall be issued to the SpringBig shareholders and Engaged Option Holders. |
(iv) | If the Earnout Trigger Event occurs at any time during the 60 months following the effective time and results in an Earnout Trigger Price equal to or greater than $18.00, then all of the Contingent Shares shall be issued to the SpringBig shareholders and Engaged Option Holders. |
• | Market leaders: Leading companies by sales, geographic reach, or innovation, in our target sub-sectors; |
• | Institutional-level operations and financial controls: Companies that have the underlying infrastructure and operations to build a public company platform; |
• | Established growth: Rapidly growing businesses with a proven financial track record or demonstrated success in business model; |
• | Scalability: Companies with a clear strategy and demonstrated pathway to scale in their respective state markets and beyond; |
• | Exceptional managers: Talented management teams with integrity that seek to increase their companies’ growth trajectories and be trailblazing innovators; and |
• | Opportunity for value creation: Like-minded operators open to strategic resources and influence at the board level. |
○ | Twilio Inc. |
○ | HubSpot, Inc. |
○ | Qualtrics International Inc. |
○ | Squarespace, Inc. |
○ | Sprout Social, Inc. |
○ | DoubleVerify Holdings, Inc. |
○ | Freshworks Inc. |
○ | Adobe Inc. |
○ | Shopify Inc. |
○ | Coupa Software Incorporated |
○ | Lightspeed Commerce Inc. |
○ | Global-e Online ltd. |
○ | Olo Inc. |
○ | Sprinklr, Inc. |
○ | BigCommerce Holdings, Inc. |
○ | Similarweb Ltd. |
○ | Toast, Inc. |
○ | DocuSign, Inc. |
○ | UiPath Inc. |
○ | Bill.com Holdings, Inc. |
○ | Asana, Inc. |
○ | Avalara, Inc. |
○ | Procore Technologies, Inc. |
○ | ZoomInfo Technologies Inc. |
○ | monday.com Ltd |
○ | Anaplan, Inc. |
○ | BlackLine, Inc. |
○ | Everbridge, Inc. |
○ | Smartsheet Inc. |
○ | WalkMe Ltd. |
○ | WM Technology, Inc. |
○ | Leafly Holdings Inc. |
| | | EV / 2023 Revenue | | ||||
| | | Median | | | Mean | | |
| Cannabis Software | | | 4.0x | | | 4.0x | |
| Marketing / Customer Engagement | | | 7.3x | | | 8.1x | |
| Commerce / POS | | | 6.0x | | | 6.5x | |
| SaaS Software | | | 8.5x | | | 10.1x | |
| Overall | | | 7.3x | | | 8.2x | |
• | Category Leading Customer Loyalty and Marketing Automation Platform. We view SpringBig as a leading customer loyalty and marketing platform that addresses a large, rapidly growing, highly regulated and fragmented cannabis end market. |
• | High Growth Recurring Software-as-a-Service (“SaaS”) Business Model with “Sticky” Customer Base. SpringBig’s customer base includes both the largest cannabis enterprise clients and small to medium businesses. SpringBig has demonstrated the ability to expand existing relationships with customers resulting in high net revenue retention and low customer churn. |
• | High Growth Business with Multiple Channels for Organic Growth. SpringBig’s business model serving its retail customers is positively correlated with the growth rate of additional states’ legalization of cannabis, thereby increasing both the consumer base and their corresponding spend. SpringBig anticipates capturing marketing spend from cannabis brands as their offerings of branded products increases. In addition, when legally permissible, SpringBig will have the potential for gross merchandise value monetization from its customers. |
• | Significant Market Opportunity. The addressable market for cannabis products and services is substantial, with U.S. retail sales of cannabis in 2020 reaching approximately $20 billion. The U.S. cannabis market has been projected to double over the next five years. |
• | Powerful Data. SpringBig develops unique and increasing volumes of data assets that power insights for its customers in a high growth industry. |
• | Consolidation Opportunity. Opportunity to create the leading marketing technology platform in cannabis through the execution of a successful M&A strategy in a fragmented technology ecosystem. |
• | Proven Management Team. SpringBig has an experienced management team with a proven track record of operational excellence. We believe that the management team has deep industry knowledge and strategic vision and also believe that the Tuatara and SpringBig teams will form a collaborative and effective long-term partnership that is positioned to create and enhance stockholder value going forward. |
• | Favorable Entry Valuation and Financial Metrics. The proposed enterprise value of $275 million implies a 4.3x multiple to 2023 estimated revenues, which compares favorably with trading multiples of companies deemed comparable to SpringBig in certain aspects. These include marketing/customer engagement software, vertical SaaS software, and commerce/POS software, which we observed to trade at an average of 8.1x, 10.1x, and 6.5x of an enterprise value to 2023 estimated revenue multiple, respectively. |
• | Strong Sponsorship. Following the closing, Tuatara is expected to have long-term blue chip shareholders and a permanent capital and public platform suitable for its long-term success, providing stability to all stakeholders. |
• | Equity Investment. $13,100,000 of private capital from affiliates of Tuatara and SpringBig has been committed, which indicates strong support from parties knowledgeable about the business of the company. |
• | Terms of the Merger Agreement. Our board of directors reviewed the financial and other terms and conditions of the merger agreement and determined that they were reasonable and were the product of arm’s-length negotiations among the parties. |
• | Shareholder Approval. Our board of directors considered the fact that in connection with the business combination our shareholders have the option to (i) remain shareholders of Tuatara, (ii) sell their shares on the open market or (iii) redeem their shares for the per share amount held in the trust account. |
• | Independent Director Role. Our board of directors is comprised of a majority of independent directors who are not affiliated with our sponsor and its affiliates. In connection with the business combination, our independent directors took an active role in evaluating the proposed terms of the business combination, including the merger agreement and the related agreements. Our independent directors evaluated and unanimously approved, as members of our board of directors, the merger agreement and the related agreements and the transactions contemplated thereby. |
• | Other Alternatives. Our board of directors’ belief is that the business combination represents the best potential business combination for Tuatara based upon the process utilized to evaluate and assess other potential acquisition targets, and our board of directors’ and management’s belief that such processes did not present a better alternative. |
($ in millions) | | | 2021E | | | 2022E | | | 2023E | | | 2024E |
Retail Revenue | | | $23.2 | | | $35.3 | | | $55.1 | | | $85.2 |
Brands Revenue | | | 0.8 | | | 3.1 | | | 8.2 | | | 19.1 |
Total Revenue | | | $24.0 | | | $38.2 | | | $63.3 | | | $104.3 |
% Growth | | | 58% | | | 60% | | | 65% | | | 65% |
Gross Profit | | | $17.4 | | | $29.5 | | | $49.4 | | | $81.4 |
% Margin | | | 73% | | | 77% | | | 78% | | | 78% |
Operating Expenses(1) | | | (22.1) | | | (31.8) | | | (40.1) | | | (52.9) |
EBITDA(2) | | | $(4.6) | | | ($2.2) | | | $9.2 | | | $28.4 |
% Margin | | | (15%) | | | (6%) | | | 15% | | | 27% |
(1) | Operating expenses include the estimated expenses and costs associated with being a public company. |
(2) | EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is a non-GAAP measure, with the closest GAAP metric being net income. EBITDA as set forth above excludes non-cash stock compensation expenses. |
Sources | | | | | Uses | | | ||
| | (in millions) | | | | | |||
Cash in trust | | | $200(1) | | | Equity issued to SpringBig | | | $215 |
SpringBig shareholder equity rollover | | | $215 | | | Cash to balance sheet | | | $203 |
PIPE subscription financing | | | $13 | | | Estimated transaction expenses | | | $20 |
Convertible note offering | | | $10 | | | | | ||
Total Sources | | | $438 | | | Total Uses | | | $438 |
(1) | Does not include interest earned on cash in trust. |
| | Existing Organizational Documents | | | Proposed Organizational Documents | |
Corporate Name (Organizational Documents Proposal A) | | | The existing organizational documents provide the name of the company is “Tuatara Capital Acquisition Corporation” See paragraph 1 of the existing organizational documents. | | | The proposed organizational documents provide the new name of the corporation to be “ .” See Article 1 of the proposed charter. |
| | | | |||
Exclusive Forum (Organizational Documents Proposal A) | | | The existing organizational documents do not contain a provision adopting an exclusive forum for certain shareholder litigation. | | | The proposed organizational documents adopt Delaware as the exclusive forum for certain stockholder litigation. See Article 11 of the proposed charter. |
| | | | |||
Perpetual Existence (Organizational Documents Proposal A) | | | The existing organizational documents provide that if we do not consummate a business combination (as defined in our existing organizational documents) by February 17, 2023, Tuatara will cease all operations except for the purposes of winding-up, liquidation and dissolution and shall redeem the shares issued in its initial public offering and liquidate its trust account. See Article 49.7 of the existing organizational documents. | | | The proposed organizational documents do not contain a provision with regard to the cessation of operations if we do not consummate a business combination by February 17, 2023 and New SpringBig’s existence will be perpetual. |
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Provisions Related to Status as Blank Check Company (Organizational Documents Proposal A) | | | The existing organizational documents set forth various provisions related to our status as a blank check company prior to the consummation of a business combination. See Article 49 of the existing organizational documents. | | | The proposed organizational documents do not include provisions related to our status as a blank check company prior to the consummation of a business combination. |
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Waiver of Corporate Opportunities (Organizational Documents Proposal A) | | | The existing organizational documents do not provide an explicit waiver of corporate opportunities for Tuatara or its directors. | | | The proposed organizational documents provide an explicit waiver of corporate opportunities for New SpringBig and its officers or directors, subject to certain exceptions. See Article 9 of the proposed charter. |
| | Existing Organizational Documents | | | Proposed Organizational Documents | |
Classified Board of Directors (Organizational Documents Proposal B) | | | The existing organizational documents provide that the board of directors will be divided into two classes, with each class generally serving for a term of two years and only one class of directors being elected in each year. See Article 27 of the existing organizational documents. | | | The proposed organizational documents provide that the board of directors of New SpringBig will be divided into three classes, with each class generally serving for a term of three years and only one class of directors being elected in each year. See Article 5.2 of the proposed charter. |
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Removal for Cause (Organizational Documents Proposal C) | | | The existing organizational documents provide that any director may be removed from office (i) if prior to the consummation of a business combination, by an ordinary resolution of the holders of the Class B ordinary shares and (ii) if following the consummation of a business combination, by an ordinary resolution of the holders of ordinary shares. See Article 29 of the existing organizational documents. | | | The proposed charter provides that, any director may be removed from office at any time, but only for cause by the affirmative vote of the holders of at least two-thirds of the voting power of all then outstanding shares of capital stock entitled to vote generally in the election of directors, voting together as a single class. See Section 5.4 of the proposed charter. |
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Ability of Stockholder to Call a Special Meeting (Organizational Documents Proposal D) | | | The existing organizational documents do not permit the shareholders to call an extraordinary general meeting of Tuatara. See Article 20.1 and 20.3 of the existing organizational documents. | | | The proposed organizational documents provide that, subject to the rights, if any, of the holders of any outstanding series of Preferred Stock, the stockholders of New SpringBig are not permitted to call a special meeting. See Article 7.1 of the proposed charter and Section 2.2 of the proposed bylaws. |
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Action by Written Consent (Organizational Documents Proposal E) | | | The existing organizational documents provide that a resolution in writing signed by all the shareholders entitled to vote at general meetings shall be as valid and effective as if the same had been passed at a duly convened and held general meeting. See Article 22.3 of the existing organizational documents. | | | The proposed organizational documents provide that, any action required or permitted to be taken by New SpringBig stockholders must be effected by a duly called annual or special meeting of such stockholders and may not be effected by written consent of the stockholders. See Article 7.3 of the proposed charter and Section 2.9 of the proposed bylaws. |
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| | Existing Organizational Documents | | | Proposed Organizational Documents | |
Authorized Shares (Organizational Documents Proposal F) | | | Our existing organizational documents authorize the issuance of up to 200,000,000 Class A ordinary shares, 20,000,000 Class B ordinary shares, and 1,000,000 preferred shares, par value $0.0001 per share. See paragraph 5 of the existing organizational documents. | | | The proposed charter authorizes the issuance of shares of common stock and shares of preferred stock, each with a par value $0.0001 per share. See Article 4 of the proposed charter. |
| | Existing Organizational Documents | | | Proposed Organizational Documents | |
Corporate Name (Organizational Documents Proposal A) | | | The existing organizational documents provide the name of the company is “Tuatara Capital Acquisition Corporation” See paragraph 1 of the existing organizational documents. | | | The proposed organizational documents provide the new name of the corporation to be “ .” See Article 1 of the proposed charter. |
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Exclusive Forum (Organizational Documents Proposal A) | | | The existing organizational documents do not contain a provision adopting an exclusive forum for certain shareholder litigation. | | | The proposed organizational documents adopt Delaware as the exclusive forum for certain stockholder litigation. See Article 11 of the proposed charter. |
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Perpetual Existence (Organizational Documents Proposal A) | | | The existing organizational documents provide that if we do not consummate a business combination (as defined in our existing organizational documents) by February 17, 2023, Tuatara will cease all operations except for the purposes of winding-up, liquidation and dissolution and shall redeem the shares issued in its initial public offering and liquidate its trust account. See Article 49.7 of the existing organizational documents. | | | The proposed organizational documents do not contain a provision with regard to the cessation of operations if we do not consummate a business combination by February 17, 2023 and New SpringBig’s existence will be perpetual. |
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Provisions Related to Status as Blank Check Company (Organizational Documents Proposal A) | | | The existing organizational documents set forth various provisions related to our status as a blank check company prior to the consummation of a business combination. See Article 49 of the existing organizational documents. | | | The proposed organizational documents do not include provisions related to our status as a blank check company prior to the consummation of a business combination. |
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Waiver of Corporate Opportunities (Organizational Documents Proposal A) | | | The existing organizational documents do not provide an explicit waiver of corporate opportunities for Tuatara or its directors. | | | The proposed organizational documents provide an explicit waiver of corporate opportunities for New SpringBig and its officers or directors, subject to certain exceptions. See Article 9 of the proposed charter. |
| | Existing Organizational Documents | | | Proposed Organizational Documents | |
Classified Board of Directors (Organizational Documents Proposal B) | | | The existing organizational documents provide that the board of directors will be divided into two classes, with each class generally serving for a term of two years and only one class of directors being elected in each year. See Article 27 of the existing organizational documents. | | | The proposed organizational documents provide that the board of directors of New SpringBig will be divided into three classes, with each class generally serving for a term of three years and only one class of directors being elected in each year. See Article 5.2 of the proposed charter. |
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Removal for Cause (Organizational Documents Proposal C) | | | The existing organizational documents provide that any director may be removed from office (i) if prior to the consummation of a business combination, by an ordinary resolution of the holders of the Class B ordinary shares and (ii) if following the consummation of a business combination, by an ordinary resolution of the holders of ordinary shares. See Article 29 of the existing organizational documents. | | | The proposed charter provides that, any director may be removed from office at any time, but only for cause by the affirmative vote of the holders of at least two-thirds of the voting power of all then outstanding shares of capital stock entitled to vote generally in the election of directors, voting together as a single class. See Section 5.4 of the proposed charter. |
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Ability of Stockholder to Call a Special Meeting (Organizational Documents Proposal D) | | | The existing organizational documents do not permit the shareholders to call an extraordinary general meeting of Tuatara. See Article 20.1 and 20.3 of the existing organizational documents. | | | The proposed organizational documents provide that, subject to the rights, if any, of the holders of any outstanding series of Preferred Stock, the stockholders of New SpringBig are not permitted to call a special meeting. See Article 7.1 of the proposed charter and Section 2.2 of the proposed bylaws. |
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Action by Written Consent (Organizational Documents Proposal E) | | | The existing organizational documents provide that a resolution in writing signed by all the shareholders entitled to vote at general meetings shall be as valid and effective as if the same had been passed at a duly convened and held general meeting. See Article 22.3 of the existing organizational documents. | | | The proposed organizational documents provide that, any action required or permitted to be taken by New SpringBig stockholders must be effected by a duly called annual or special meeting of such stockholders and may not be effected by written consent of the stockholders. See Article 7.3 of the proposed charter and Section 2.9 of the proposed bylaws. |
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| | Existing Organizational Documents | | | Proposed Organizational Documents | |
Authorized Shares (Organizational Documents Proposal F) | | | Our existing organizational documents authorize the issuance of up to 200,000,000 Class A ordinary shares, 20,000,000 Class B ordinary shares, and 1,000,000 preferred shares, par value $0.0001 per share. See paragraph 5 of the existing organizational documents. | | | The proposed charter authorizes the issuance of shares of common stock and shares of preferred stock, each with a par value $0.0001 per share. See Article 4 of the proposed charter. |
• | Scenario 1 - Assuming No Redemptions: This presentation assumes that no Tuatara shareholders exercise redemption rights with respect to their Class A ordinary shares upon consummation of the business combination; and |
• | Scenario 2 - Assuming Maximum Redemptions: This presentation assumes that 19,700,054 shares of Tuatara Class A ordinary shares are redeemed for their pro rata share of the cash in the trust account. This presentation assumes that Tuatara shareholders exercise their redemption rights with respect to a maximum of 19,700,054 ordinary shares upon consummation of the business combination at a redemption price of approximately $10.00 per share. The maximum redemption amount reflects the maximum number of Tuatara public shares that can be redeemed without violating the conditions of the business combination agreement and the assumption that Tuatara’s Amended and Restated Memorandum and Articles of Association are amended such that they will not be required to maintain a minimum net tangible asset value of at least $5,000,001 at the time of the closing of the business combination, after giving effect to the payments to redeeming shareholders. Scenario 2 includes all adjustments contained in Scenario 1 and presents additional adjustments to reflect the effect of the maximum redemptions. Should Tuatara’s shareholders attempt to redeem more than the maximum amount of 19,700,054 ordinary shares, it would be in violation of the conditions of the business combination agreement and Tuatara would not proceed with the business combination. Should the proposal to amend Tuatara’s Amended and Restated Memorandum and Articles of Association such that Tuatara will not be required to maintain a minimum net tangible asset value of at least $5,000,001 at the time of the closing of the business combination not be approved, Tuatara would not proceed with the business combination. |
| | SpringBig | | | Tuatara | | | Pro Forma Combined Scenario 1 Assuming No Redemptions into Cash | | | Pro Forma Combined Scenario 2 Assuming Maximum Redemptions into Cash | |
Statement of Operations Data – Year Ended December 31, 2021 | | | | | | | | | ||||
Revenues | | | $24,024 | | | $— | | | $24,024 | | | $24,024 |
Gross profit | | | $17,095 | | | $— | | | $17,095 | | | $17,095 |
Operating loss | | | $(6,532) | | | $(2,035) | | | $(16,237) | | | $(16,237) |
Net (loss) income | | | $(5,750) | | | $7,707 | | | $(7,825) | | | $(7,825) |
Net (loss) income per share – basic | | | $(0.43) | | | $0.35 | | | $(0.17) | | | $(0.30) |
Net (loss) income per share – diluted | | | $(0.43) | | | $0.34 | | | $(0.17) | | | $(0.30) |
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Balance Sheet Data – As of December 31, 2021 | | | | | | | | | ||||
Total current assets | | | $6,479 | | | $881 | | | $214,271 | | | $17,235 |
Total assets | | | $7,043 | | | $200,917 | | | $214,835 | | | $17,799 |
Total current liabilities | | | $2,584 | | | $1,663 | | | $2,692 | | | $2,692 |
Total liabilities | | | $2,584 | | | $18,103 | | | $20,299 | | | $20,299 |
Temporary equity | | | $— | | | $200,000 | | | $— | | | $— |
Total shareholders’ equity (deficit) | | | $4,459 | | | $(17,186) | | | $194,536 | | | $(2,500) |
(in thousands, except share and per share data) | | | SpringBig | | | Tuatara | | | Pro Forma Combined Assuming No Redemptions into Cash | | | Pro Forma Combined Assuming Maximum Redemptions into Cash |
Year Ended December 31, 2021 | | | | | | | | | ||||
Net (loss) income | | | $(5,750) | | | $7,707 | | | $(7,825) | | | $(7,825) |
Shareholders’ equity (deficit) | | | 4,459 | | | (17,186) | | | 194,536 | | | (2,500) |
Weighted average shares outstanding – basic | | | 13,385,267 | | | 22,287,671 | | | 46,810,000 | | | 26,409,892 |
Basic net (loss) income per share | | | (0.43) | | | 0.35 | | | (0.17) | | | (0.30) |
Weighted average shares outstanding – diluted | | | 13,385,267 | | | 22,369,863 | | | 46,810,000 | | | 26,409,892 |
Diluted net (loss) income per share | | | (0.43) | | | 0.34 | | | (0.17) | | | (0.30) |
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Book value per share – basic and diluted | | | 0.33 | | | (0.77) | | | 4.16 | | | 0.09 |
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Cash dividends declared per share – basic and diluted | | | — | | | — | | | — | | | — |
○ | The Share Conversion Ratio is determined by dividing (i) $215 million by (ii) the aggregate number of issued and outstanding SpringBig capital stock as of immediately prior to the effective time of the business combination and the aggregate number of SpringBig shares issuable upon the exercise of all SpringBig vested stock options (calculated using the treasury method of accounting) to determine the “Per Share Equity Value” and then dividing the Per Share Equity Value by $10.00. |
(i) | If the Earnout Trigger Event occurs prior to the one-year anniversary of the effective time and results in an Earnout Trigger Price that is greater than $10.00, but less than $12.00, then only a portion of the First Tranche Shares shall be issued to the SpringBig shareholders and Engaged Option Holders equal to the First Tranche Shares multiplied by a fraction calculated as: (A) the numerator of which shall be the Earnout Trigger Price minus $10 and (B) the denominator of which is 2. |
(ii) | If the Earnout Trigger Event occurs after the one-year anniversary of the Closing Date and results in an Earnout Trigger Price that is less than $12.00, then none of the Contingent Shares shall be issued. |
(iii) | If the Earnout Trigger Event occurs at any time during the 60 months following the effective time and results in an Earnout Trigger Price that is equal to or greater than $15.00, but less than $18.00, then only the First Tranche Shares and Second Tranche Shares shall be issued to the SpringBig shareholders and Engaged Option Holders. |
(iv) | If the Earnout Trigger Event occurs at any time during the 60 months following the effective time and results in an Earnout Trigger Price equal to or greater than $18.00, then all of the Contingent Shares shall be issued to the SpringBig shareholders and Engaged Option Holders. |
• | Market leaders: Leading companies by sales, geographic reach, or innovation, in our target sub-sectors; |
• | Institutional-level operations and financial controls: Companies that have the underlying infrastructure and operations to build a public company platform; |
• | Established growth: Rapidly growing businesses with a proven financial track record or demonstrated success in business model; |
• | Scalability: Companies with a clear strategy and demonstrated pathway to scale in their respective state markets and beyond; |
• | Exceptional managers: Talented management teams with integrity that seek to increase their companies’ growth trajectories and be trailblazing innovators; and |
• | Opportunity for value creation: Like-minded operators open to strategic resources and influence at the board level. |
○ | Twilio Inc. |
○ | HubSpot, Inc. |
○ | Qualtrics International Inc. |
○ | Squarespace, Inc. |
○ | Sprout Social, Inc. |
○ | DoubleVerify Holdings, Inc. |
○ | Freshworks Inc. |
○ | Adobe Inc. |
○ | Shopify Inc. |
○ | Coupa Software Incorporated |
○ | Lightspeed Commerce Inc. |
○ | Global-e Online ltd. |
○ | Olo Inc. |
○ | Sprinklr, Inc. |
○ | BigCommerce Holdings, Inc. |
○ | Similarweb Ltd. |
○ | Toast, Inc. |
○ | DocuSign, Inc. |
○ | UiPath Inc. |
○ | Bill.com Holdings, Inc. |
○ | Asana, Inc. |
○ | Avalara, Inc. |
○ | Procore Technologies, Inc. |
○ | ZoomInfo Technologies Inc. |
○ | monday.com Ltd |
○ | Anaplan, Inc. |
○ | BlackLine, Inc. |
○ | Everbridge, Inc. |
○ | Smartsheet Inc. |
○ | WalkMe Ltd. |
○ | WM Technology, Inc. |
○ | Leafly Holdings Inc. |
| | | EV / 2023 Revenue | | ||||
| | | Median | | | Mean | | |
| Cannabis Software | | | 4.0x | | | 4.0x | |
| Marketing / Customer Engagement | | | 7.3x | | | 8.1x | |
| Commerce / POS | | | 6.0x | | | 6.5x | |
| SaaS Software | | | 8.5x | | | 10.1x | |
| Overall | | | 7.3x | | | 8.2x | |
• | Category Leading Customer Loyalty and Marketing Automation Platform. We view SpringBig as a leading customer loyalty and marketing platform that addresses a large, rapidly growing, highly regulated and fragmented cannabis end market. |
• | High Growth Recurring Software-as-a-Service (“SaaS”) Business Model with “Sticky” Customer Base. SpringBig’s customer base includes both the largest cannabis enterprise clients and small to medium businesses. SpringBig has demonstrated the ability to expand existing relationships with customers resulting in high net revenue retention and low customer churn. |
• | High Growth Business with Multiple Channels for Organic Growth. SpringBig’s business model serving its retail customers is positively correlated with the growth rate of additional states’ legalization of cannabis, thereby increasing both the consumer base and their corresponding spend. SpringBig anticipates capturing marketing spend from cannabis brands as their offerings of branded products increases. In addition, when legally permissible, SpringBig will have the potential for gross merchandise value monetization from its customers. |
• | Significant Market Opportunity. The addressable market for cannabis products and services is substantial, with U.S. retail sales of cannabis in 2020 reaching approximately $20 billion. The U.S. cannabis market has been projected to double over the next five years. |
• | Powerful Data. SpringBig develops unique and increasing volumes of data assets that power insights for its customers in a high growth industry. |
• | Consolidation Opportunity. Opportunity to create the leading marketing technology platform in cannabis through the execution of a successful M&A strategy in a fragmented technology ecosystem. |
• | Proven Management Team. SpringBig has an experienced management team with a proven track record of operational excellence. We believe that the management team has deep industry knowledge and strategic vision and also believe that the Tuatara and SpringBig teams will form a collaborative and effective long-term partnership that is positioned to create and enhance stockholder value going forward. |
• | Favorable Entry Valuation and Financial Metrics. The proposed enterprise value of $275 million implies a 4.3x multiple to 2023 estimated revenues, which compares favorably with trading multiples of companies deemed comparable to SpringBig in certain aspects. These include marketing/customer engagement software, vertical SaaS software, and commerce/POS software, which we observed to trade at an average of 8.1x, 10.1x, and 6.5x of an enterprise value to 2023 estimated revenue multiple, respectively. |
• | Strong Sponsorship. Following the closing, Tuatara is expected to have long-term blue chip shareholders and a permanent capital and public platform suitable for its long-term success, providing stability to all stakeholders. |
• | Equity Investment. $13,100,000 of private capital from affiliates of Tuatara and SpringBig has been committed, which indicates strong support from parties knowledgeable about the business of the company. |
• | Terms of the Merger Agreement. Our board of directors reviewed the financial and other terms and conditions of the merger agreement and determined that they were reasonable and were the product of arm’s-length negotiations among the parties. |
• | Shareholder Approval. Our board of directors considered the fact that in connection with the business combination our shareholders have the option to (i) remain shareholders of Tuatara, (ii) sell their shares on the open market or (iii) redeem their shares for the per share amount held in the trust account. |
• | Independent Director Role. Our board of directors is comprised of a majority of independent directors who are not affiliated with our sponsor and its affiliates. In connection with the business combination, our independent directors took an active role in evaluating the proposed terms of the business combination, including the merger agreement and the related agreements. Our independent directors evaluated and unanimously approved, as members of our board of directors, the merger agreement and the related agreements and the transactions contemplated thereby. |
• | Other Alternatives. Our board of directors’ belief is that the business combination represents the best potential business combination for Tuatara based upon the process utilized to evaluate and assess other potential acquisition targets, and our board of directors’ and management’s belief that such processes did not present a better alternative. |
($ in millions) | | | 2021E | | | 2022E | | | 2023E | | | 2024E |
Retail Revenue | | | $23.2 | | | $35.3 | | | $55.1 | | | $85.2 |
Brands Revenue | | | 0.8 | | | 3.1 | | | 8.2 | | | 19.1 |
Total Revenue | | | $24.0 | | | $38.2 | | | $63.3 | | | $104.3 |
% Growth | | | 58% | | | 60% | | | 65% | | | 65% |
Gross Profit | | | $17.4 | | | $29.5 | | | $49.4 | | | $81.4 |
% Margin | | | 73% | | | 77% | | | 78% | | | 78% |
Operating Expenses(1) | | | (22.1) | | | (31.8) | | | (40.1) | | | (52.9) |
EBITDA(2) | | | $(4.6) | | | ($2.2) | | | $9.2 | | | $28.4 |
% Margin | | | (15%) | | | (6%) | | | 15% | | | 27% |
(1) | Operating expenses include the estimated expenses and costs associated with being a public company. |
(2) | EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is a non-GAAP measure, with the closest GAAP metric being net income. EBITDA as set forth above excludes non-cash stock compensation expenses. |
Sources | | | | | Uses | | | ||
| | (in millions) | | | | | |||
Cash in trust | | | $200(1) | | | Equity issued to SpringBig | | | $215 |
SpringBig shareholder equity rollover | | | $215 | | | Cash to balance sheet | | | $203 |
PIPE subscription financing | | | $13 | | | Estimated transaction expenses | | | $20 |
Convertible note offering | | | $10 | | | | | ||
Total Sources | | | $438 | | | Total Uses | | | $438 |
(1) | Does not include interest earned on cash in trust. |
• | Taxes. The primary reason for the domestication is to enable Tuatara to avoid certain tax inefficiencies that would result if Tuatara were to conduct an operating business in the United States as a foreign corporation following the business combination. |
• | Prominence, Predictability, and Flexibility of Delaware Law. For many years Delaware has followed a policy of encouraging incorporation in its state and, in furtherance of that policy, has been a leader in adopting, construing, and implementing comprehensive, flexible corporate laws responsive to the legal and business needs of corporations organized under its laws. Many corporations have chosen Delaware initially as a state of incorporation or have subsequently changed corporate domicile to Delaware. Because of Delaware’s prominence as the state of incorporation for many major corporations, both the legislature and courts in Delaware have demonstrated the ability and a willingness to act quickly and effectively to meet changing business needs. The DGCL is frequently revised and updated to accommodate changing legal and business needs and is more comprehensive, widely used and interpreted than other state corporate laws. This favorable corporate and regulatory environment is attractive to businesses such as ours. Based on publicly available data, over half of publicly-traded corporations in the United States and approximately two thirds of all Fortune 500 companies are incorporated in Delaware. |
• | Well-Established Principles of Corporate Governance. There is substantial judicial precedent in the Delaware courts as to the legal principles applicable to measures that may be taken by a corporation and |
• | Increased Ability to Attract and Retain Qualified Directors. Reincorporation from the Cayman Islands to Delaware is attractive to directors, officers, and shareholders alike. New SpringBig’s incorporation in Delaware may make New SpringBig more attractive to future candidates for our board of directors, because many such candidates are already familiar with Delaware corporate law from their past business experience. To date, we have not experienced difficulty in retaining directors or officers, but directors of public companies are exposed to significant potential liability. Thus, candidates’ familiarity and comfort with Delaware laws — especially those relating to director indemnification (as discussed below) — draw such qualified candidates to Delaware corporations. Our board of directors therefore believes that providing the benefits afforded directors by Delaware law will enable New SpringBig to compete more effectively with other public companies in the recruitment of talented and experienced directors and officers. Moreover, Delaware’s vast body of law on the fiduciary duties of directors provides appropriate protection for our shareholders from possible abuses by directors and officers. |
| | Existing Organizational Documents | | | Proposed Organizational Documents | |
Corporate Name (Organizational Documents Proposal A) | | | The existing organizational documents provide the name of the company is “Tuatara Capital Acquisition Corporation” See paragraph 1 of the existing organizational documents. | | | The proposed organizational documents provide the new name of the corporation to be “SpringBig Holdings, Inc.” See Article 1 of the proposed charter. |
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Exclusive Forum (Organizational Documents Proposal A) | | | The existing organizational documents do not contain a provision adopting an exclusive forum for certain shareholder litigation. | | | The proposed organizational documents adopt Delaware as the exclusive forum for certain stockholder litigation. See Article 11 of the proposed charter. |
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Perpetual Existence (Organizational Documents Proposal A) | | | The existing organizational documents provide that if we do not consummate a business combination (as defined in our existing organizational documents) by February 17, 2023, Tuatara will cease all operations except for the purposes of winding-up, liquidation and dissolution and shall redeem the shares issued in its initial public offering and liquidate its trust account. See Article 49.7 of the existing organizational documents. | | | The proposed organizational documents do not contain a provision with regard to the cessation of operations if we do not consummate a business combination by February 17, 2023 and New SpringBig’s existence will be perpetual. |
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Provisions Related to Status as Blank Check Company (Organizational Documents Proposal A) | | | The existing organizational documents set forth various provisions related to our status as a blank check company prior to the consummation of a business combination. See Article 49 of the existing organizational documents. | | | The proposed organizational documents do not include provisions related to our status as a blank check company prior to the consummation of a business combination. |
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| | Existing Organizational Documents | | | Proposed Organizational Documents | |
Waiver of Corporate Opportunities (Organizational Documents Proposal A) | | | The existing organizational documents do not provide an explicit waiver of corporate opportunities for Tuatara or its directors. | | | The proposed organizational documents provide an explicit waiver of corporate opportunities for New SpringBig and its officers or directors, subject to certain exceptions. See Article 9 of the proposed charter. |
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Classified Board of Directors (Organizational Documents Proposal B) | | | The existing organizational documents provide that the board of directors will be divided into two classes, with each class generally serving for a term of two years and only one class of directors being elected in each year. See Article 27 of the existing organizational documents. | | | The proposed organizational documents provide that the board of directors of New SpringBig will be divided into three classes, with each class generally serving for a term of three years and only one class of directors being elected in each year. See Article 5.2 of the proposed charter. |
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Removal for Cause (Organizational Documents Proposal C) | | | The existing organizational documents provide that any director may be removed from office (i) if prior to the consummation of a business combination, by an ordinary resolution of the holders of the Class B ordinary shares and (ii) if following the consummation of a business combination, by an ordinary resolution of the holders of ordinary shares. See Article 29 of the existing organizational documents. | | | The proposed charter provides that, any director may be removed from office at any time, but only for cause by the affirmative vote of the holders of at least two-thirds of the voting power of all then outstanding shares of capital stock entitled to vote generally in the election of directors, voting together as a single class. See Section 5.4 of the proposed charter. |
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Ability of Stockholder to Call a Special Meeting (Organizational Documents Proposal D) | | | The existing organizational documents do not permit the shareholders to call an extraordinary general meeting of Tuatara. See Article 20.1 and 20.3 of the existing organizational documents. | | | The proposed organizational documents provide that, subject to the rights, if any, of the holders of any outstanding series of Preferred Stock, the stockholders of New SpringBig are not permitted to call a special meeting. See Article 7.1 of the proposed charter and Section 2.2 of the proposed bylaws. |
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| | Existing Organizational Documents | | | Proposed Organizational Documents | |
Action by Written Consent (Organizational Documents Proposal E) | | | The existing organizational documents provide that a resolution in writing signed by all the shareholders entitled to vote at general meetings shall be as valid and effective as if the same had been passed at a duly convened and held general meeting. See Article 22.3 of the existing organizational documents. | | | The proposed organizational documents provide that, any action required or permitted to be taken by New SpringBig stockholders must be effected by a duly called annual or special meeting of such stockholders and may not be effected by written consent of the stockholders. See Article 7.3 of the proposed charter and Section 2.9 of the proposed bylaws. |
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Authorized Shares (Organizational Documents Proposal F) | | | Our existing organizational documents authorize the issuance of up to 200,000,000 Class A ordinary shares, 20,000,000 Class B ordinary shares, and 1,000,000 preferred shares, par value $0.0001 per share. See paragraph 5 of the existing organizational documents. | | | The proposed charter authorizes the issuance of shares of common stock and shares of preferred stock, each with a par value $0.0001 per share. See Article 4 of the proposed charter. |
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(a) | Article 49.2(b) be deleted in its entirety and be replaced with the following new Article 49.2(b): |
(b) | Article 49.4 be deleted in its entirety and be replaced with the following new Article 49.4: |
(c) | the following final sentence of Article 49.5 be deleted in its entirety: |
(d) | the final sentence of Article 49.8 be deleted in its entirety and be replaced with the following new final sentence of Article 49.8: |
Name of Director | | | Class of Director |
Amanda Lannert | | | Class I |
Jon Trauben | | | Class I |
Patricia Glassford | | | Class II |
Phil Schwarz | | | Class II |
Steven Bernstein | | | Class III |
Jeffrey Harris | | | Class III |
Sergey Sherman | | | Class III |
• | the sections titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations of SpringBig” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations of Tuatara” and other financial information included elsewhere in this proxy statement/prospectus; and |
a) | 7,000,000 Contingent Shares if the closing price of the New SpringBig common stock equals or exceeds $12.00 per share on any twenty (20) trading days in a thirty (30)-trading day period at any time after the Closing Date and no later than 60 months following the Closing Date; |
b) | 2,250,000 Contingent Shares if the closing price of the New SpringBig common stock equals or exceeds $15.00 per share on any twenty (20) trading days in a thirty (30)-trading day period at any time after the Closing Date and no later than 60 months following the Closing Date; and |
c) | 1,250,000 Contingent Shares if the closing price of the New SpringBig common stock equals or exceeds $18.00 per share on any twenty (20) trading days in a thirty (30)-trading day period at any time after the Closing Date and no later than 60 months following the Closing Date. |
• | Scenario 1 - Assuming No Redemptions: This presentation assumes that no Tuatara shareholders exercise redemption rights with respect to their Class A ordinary shares upon consummation of the business combination; and |
• | Scenario 2 - Assuming Maximum Redemptions: This presentation assumes that 19,700,054 shares of Tuatara Class A ordinary shares are redeemed for their pro rata share of the cash in the trust account. This presentation assumes that Tuatara shareholders exercise their redemption rights with respect to a maximum of 19,700,054 ordinary shares upon consummation of the business combination at a redemption price of approximately $10.00 per share. The maximum redemption amount reflects the maximum number of Tuatara public shares that can be redeemed without violating the conditions of the business combination agreement and the assumption that Tuatara’s Amended and Restated Memorandum and Articles of Association are amended such that Tuatara will not be required to maintain a minimum net tangible asset value of at least $5,000,001 at the time of the closing of the business combination, after giving effect to the payments to redeeming shareholders. Scenario 2 includes all adjustments contained in Scenario 1 and presents additional adjustments to reflect the effect of the maximum redemptions. Should Tuatara’s shareholders attempt to redeem more than the maximum amount of 19,700,054 ordinary shares, it would be in violation of the conditions of the business combination agreement and Tuatara would not proceed with the business combination. Should the proposal to amend Tuatara’s Amended and Restated Memorandum and Articles of Association such that Tuatara will not be required to maintain a minimum net tangible asset value of at least $5,000,001 at the time of the closing of the business combination not be approved, Tuatara would not proceed with the business combination. |
| | Scenario 1 Combined (Assuming No Redemptions Into Cash) | | | Scenario 2 Combined (Assuming Maximum Redemptions Into Cash) | |
Weighted average shares calculation, basic and diluted | | | | | ||
Tuatara public shares | | | 21,000,000 | | | 599,892 |
Tuatara founder shares | | | 3,000,000 | | | 3,000,000 |
Subscription investors | | | 1,310,000 | | | 1,310,000 |
Combined company shares issued in business combination | | | 21,500,000 | | | 21,500,000 |
Weighted average shares outstanding | | | 46,810,000 | | | 26,409,892 |
Percent of shares owned by SpringBig shareholders | | | 45.9% | | | 81.4% |
Percent of shares owned by Tuatara holders | | | 51.3% | | | 13.6% |
Percent of shares owned by subscription investors(1) | | | 2.8% | | | 5.0% |
(1) | Of the shares owned by the subscription investors, 600,000 shares are attributable to affiliates of Tuatara and 10,000 shares are attributable to affiliates of SpringBig. |
| | SpringBig (Historical) | | Tuatara (Historical) | | Transaction Accounting Adjustments (Assuming No Redemptions) | | | | | Pro Forma Combined (Assuming No Redemptions) | | Additional Transaction Accounting Adjustments (Assuming Maximum Redemptions) | | | | | Pro Forma Combined (Assuming Maximum Redemptions) | | | SpringBig (Historical) | | Tuatara (Historical) | | Transaction Accounting Adjustments (Assuming No Redemptions) | | | | | Pro Forma Combined (Assuming No Redemptions) | | Additional Transaction Accounting Adjustments (Assuming Maximum Redemptions) | | | | | Pro Forma Combined (Assuming Maximum Redemptions) | |||||||||||
Assets | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||||
Current assets: | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | | $2,227 | | $621 | | $200,036 | | (1) | | $ 204,209 | | $ (197,036) | | (2) | | $7,173 | | $2,227 | | $621 | | $200,036 | | (1) | | $208,409 | | $ (197,036) | | (2) | | $11,373 | ||||||||||||||||
| | | (21,775) | | (3) | | | | | | | | (17,575) | | (3) | | | | | |||||||||||||||||||||||||||||
| | | 13,100 | | (4) | | | | | | | | 13,100 | | (4) | | | | | |||||||||||||||||||||||||||||
| | | 10,000 | | (8) | | | | | | | | 10,000 | | (8) | | | | | |||||||||||||||||||||||||||||
Accounts receivable, net | | 3,045 | | — | | — | | | 3,045 | | — | | | 3,045 | | 3,045 | | — | | — | | | 3,045 | | — | | | 3,045 | ||||||||||||||||||||
Contract assets | | 364 | | — | | — | | | 364 | | — | | | 364 | | 364 | | — | | — | | | 364 | | — | | | 364 | ||||||||||||||||||||
Prepaid expenses and other current assets | | 843 | | 260 | | 1,350 | | (3) | | 2,453 | | — | | | 2,453 | | 843 | | 260 | | 1,350 | | (3) | | 2,453 | | — | | | 2,453 | ||||||||||||||||||
Total Current Assets | | 6,479 | | 881 | | 202,711 | | | 210,071 | | (197,036) | | | 13,035 | | 6,479 | | 881 | | 206,911 | | | 214,271 | | (197,036) | | | 17,235 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||
Property, plant and equipment | | 480 | | — | | — | | | 480 | | — | | | 480 | | 480 | | — | | — | | | 480 | | — | | | 480 | ||||||||||||||||||||
Deposits and other assets | | 84 | | — | | — | | | 84 | | — | | | 84 | | 84 | | — | | — | | | 84 | | — | | | 84 | ||||||||||||||||||||
Investments held in Trust Account | | — | | 200,036 | | (200,036) | | (1) | | — | | — | | | — | | — | | 200,036 | | (200,036) | | (1) | | — | | — | | | — | ||||||||||||||||||
Total Assets | | $7,043 | | $ 200,917 | | $2,675 | | | $ 210,635 | | $ (197,036) | | | $13,599 | | $7,043 | | $ 200,917 | | $6,875 | | | $214,835 | | $ (197,036) | | | $17,799 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||
Liabilities and Stockholders’ Equity | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||||
Current Liabilities | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||||
Accounts payable | | $412 | | $1,555 | | $(1,555) | | (3) | | $412 | | $— | | ��� | | $412 | | $412 | | $1,555 | | $(1,555) | | (3) | | $412 | | $— | | | $412 | |||||||||||||||||
Related party payable | | 5 | | — | | — | | | 5 | | — | | | 5 | | 5 | | — | | — | | | 5 | | — | | | 5 | ||||||||||||||||||||
Accrued wages and commissions | | 805 | | — | | — | | | 805 | | — | | | 805 | | 805 | | — | | — | | | 805 | | — | | | 805 | ||||||||||||||||||||
Accrued expenses | | 855 | | 108 | | — | | | 963 | | — | | | 963 | | 855 | | 108 | | — | | | 963 | | — | | | 963 | ||||||||||||||||||||
Contract liability | | 450 | | — | | — | | | 450 | | — | | | 450 | | 450 | | — | | — | | | 450 | | — | | | 450 | ||||||||||||||||||||
Other liabilities | | 57 | | — | | — | | | 57 | | — | | | 57 | | 57 | | — | | — | | | 57 | | — | | | 57 | ||||||||||||||||||||
Total current liabilities | | 2,584 | | 1,663 | | (1,555) | | | 2,692 | | — | | | 2,692 | | 2,584 | | 1,663 | | (1,555) | | | 2,692 | | — | | | 2,692 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||
Warrant liability | | — | | 9,440 | | — | | | 9,440 | | — | | | 9,440 | | — | | 9,440 | | — | | | 9,440 | | — | | | 9,440 | ||||||||||||||||||||
Convertible notes | | — | | — | | 8,167 | | (8) | | 8,167 | | — | | | 8,167 | | — | | — | | 8,167 | | (8) | | 8,167 | | — | | | 8,167 | ||||||||||||||||||
Deferred underwriting fee payable | | — | | 7,000 | | (7,000) | | (3) | | — | | — | | | — | | — | | 7,000 | | (7,000) | | (3) | | — | | — | | | — | ||||||||||||||||||
Total Liabilities | | 2,584 | | 18,103 | | (388) | | | 20,299 | | — | | | 20,299 | | 2,584 | | 18,103 | | (388) | | | 20,299 | | — | | | 20,299 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||
Ordinary shares subject to possible redemption | | — | | 200,000 | | (200,000) | | (2) | | — | | — | | | — | | — | | 200,000 | | (200,000) | | (2) | | — | | — | | | — | ||||||||||||||||||
| | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||
Shareholders’ Equity | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||||
Series B Preferred | | 5 | | — | | (5) | | (5) | | — | | — | | | — | | 5 | | — | | (5) | | (5) | | — | | — | | | — | ||||||||||||||||||
Series A Preferred | | 5 | | — | | (5) | | (5) | | — | | — | | | — | | 5 | | — | | (5) | | (5) | | — | | — | | | — | ||||||||||||||||||
Series Seed Preferred | | 7 | | — | | (7) | | (5) | | — | | — | | | — | | 7 | | — | | (7) | | (5) | | — | | — | | | — | ||||||||||||||||||
Common stock | | 14 | | — | | 2 | | (2) | | 5 | | (2) | | (2) | | 3 | | 14 | | — | | 2 | | (2) | | 5 | | (2) | | (2) | | 3 | ||||||||||||||||
| | | (14) | | (4) | | | | | | | | (14) | | (4) | | | | | |||||||||||||||||||||||||||||
| | | 2 | | (5) | | | | | | | | 2 | | (5) | | | | | |||||||||||||||||||||||||||||
| | | 1 | | (5) | | | | | | | | 1 | | (5) | | | | | |||||||||||||||||||||||||||||
Additional paid in capital | | 17,653 | | — | | 199,998 | | (2) | | 215,426 | | (197,034) | | (2) | | 18,392 | | 17,653 | | — | | 199,998 | | (2) | | 215,426 | | (197,034) | | (2) | | 18,392 | ||||||||||||||||
| | | 13,100 | | (4) | | | | | | | | 13,100 | | (4) | | | | | |||||||||||||||||||||||||||||
| | | (17,158) | | (5) | | | | | | | | (17,158) | | (5) | | | | | |||||||||||||||||||||||||||||
| | | 1,833 | | (8) | | | | | | | | 1,833 | | (8) | | | | | |||||||||||||||||||||||||||||
Class B ordinary shares | | — | | 1 | | (1) | | (5) | | — | | — | | | — | | — | | 1 | | (1) | | (5) | | — | | — | | | — | ||||||||||||||||||
Accumulated deficit | | (13,225) | | (17,187) | | (11,870) | | (3) | | (25,095) | | — | | | (25,095) | | (13,225) | | (17,187) | | (7,670) | | (3) | | (20,895) | | — | | | (20,895) | ||||||||||||||||||
| | | 17,187 | | (5) | | | | | | | | 17,187 | | (5) | | | | | |||||||||||||||||||||||||||||
Total Shareholders’ Equity | | 4,459 | | (17,186) | | 203,063 | | | 190,336 | | (197,036) | | | (6,700) | | 4,459 | | (17,186) | | 207,263 | | | 194,536 | | (197,036) | | | (2,500) | ||||||||||||||||||||
Total Liabilities and Shareholders’ Equity | | $7,043 | | $ 200,917 | | $2,675 | | | $ 210,635 | | $ (197,036) | | | $13,599 | | $7,043 | | $ 200,917 | | $6,875 | | | $214,835 | | $ (197,036) | | | $17,799 |
| | SpringBig (Historical) | | Tuatara (Historical) | | Transaction Accounting Adjustments (Assuming No Redemptions) | | | | | Pro Forma Combined (Assuming No Redemptions) | | Additional Transaction Accounting Adjustments (Assuming Maximum Redemptions) | | | | | Pro Forma Combined (Assuming Maximum Redemptions) | | | SpringBig (Historical) | | Tuatara (Historical) | | Transaction Accounting Adjustments (Assuming No Redemptions) | | | | | Pro Forma Combined (Assuming No Redemptions) | | Additional Transaction Accounting Adjustments (Assuming Maximum Redemptions) | | | | | Pro Forma Combined (Assuming Maximum Redemptions) | |||||||||||
Revenue | | $24,024 | | $— | | $— | | | $24,024 | | $— | | | $24,024 | | $24,024 | | $— | | $— | | | $24,024 | | $— | | | $24,024 | ||||||||||||||||||||
Cost of revenue | | 6,929 | | — | | — | | | 6,929 | | — | | | 6,929 | | 6,929 | | — | | — | | | 6,929 | | — | | | 6,929 | ||||||||||||||||||||
Gross profit | | 17,095 | | — | | — | | | 17,095 | | — | | | 17,095 | | 17,095 | | — | | — | | | 17,095 | | — | | | 17,095 | ||||||||||||||||||||
Selling, servicing and marketing | | 10,185 | | — | | — | | | 10,185 | | — | | | 10,185 | | 10,185 | | — | | — | | | 10,185 | | — | | | 10,185 | ||||||||||||||||||||
Technology and software development | | 8,410 | | — | | — | | | 8,410 | | — | | | 8,410 | | 8,410 | | — | | — | | | 8,410 | | — | | | 8,410 | ||||||||||||||||||||
General and administrative | | 5,032 | | — | | — | | | 5,032 | | — | | | 5,032 | | 5,032 | | — | | — | | | 5,032 | | — | | | 5,032 | ||||||||||||||||||||
Operating expenses | | — | | 2,035 | | 11,870 | | (2) | | 13,905 | | — | | | 13,905 | | — | | 2,035 | | 7,670 | | (2) | | 9,705 | | — | | | 9,705 | ||||||||||||||||||
Total operating expenses | | 23,627 | | 2,035 | | 11,870 | | | 37,532 | | — | | | 37,532 | | 23,627 | | 2,035 | | 7,670 | | | 33,332 | | — | | | 33,332 | ||||||||||||||||||||
Loss from operations | | (6,532) | | (2,035) | | (11,870) | | | (20,437) | | — | | | (20,437) | | (6,532) | | (2,035) | | (7,670) | | | (16,237) | | — | | | (16,237) | ||||||||||||||||||||
| | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||
Interest income | | 3 | | — | | — | | | 3 | | — | | | 3 | | 3 | | — | | — | | | 3 | | — | | | 3 | ||||||||||||||||||||
Interest expense | | — | | — | | (2,077) | | (3) | | (2,077) | | — | | | (2,077) | | — | | — | | (2,077) | | (3) | | (2,077) | | — | | | (2,077) | ||||||||||||||||||
Forgiveness of PP Loan | | 781 | | — | | — | | | 781 | | — | | | 781 | ||||||||||||||||||||||||||||||||||
Forgiveness of PPP Loan | | 781 | | — | | — | | | 781 | | — | | | 781 | ||||||||||||||||||||||||||||||||||
Change in fair value of warrants | | — | | 12,960 | | — | | | 12,960 | | — | | | 12,960 | | — | | 12,960 | | — | | | 12,960 | | — | | | 12,960 | ||||||||||||||||||||
Compensation expense | | — | | (2,400) | | — | | | (2,400) | | — | | | (2,400) | | — | | (2,400) | | — | | | (2,400) | | — | | | (2,400) | ||||||||||||||||||||
Transaction costs allocated to warrants | | — | | (853) | | — | | | (853) | | — | | | (853) | | — | | (853) | | — | | | (853) | | — | | | (853) | ||||||||||||||||||||
Interest earned on investments held in Trust Account | | — | | 35 | | (35) | | (1) | | — | | — | | | — | | — | | 35 | | (35) | | (1) | | — | | — | | | — | ||||||||||||||||||
(Loss) income before taxes | | (5,748) | | 7,707 | | (13,982) | | | (12,023) | | — | | | (12,023) | | (5,748) | | 7,707 | | (9,782) | | | (7,823) | | — | | | (7,823) | ||||||||||||||||||||
Provision for taxes | | (2) | | — | | — | | (4) | | (2) | | — | | | (2) | | (2) | | — | | — | | (4) | | (2) | | — | | | (2) | ||||||||||||||||||
Net (loss) income | | $(5,750) | | $7,707 | | $(13,982) | | | $(12,025) | | $— | | | $(12,025) | | $(5,750) | | $7,707 | | $(9,782) | | | $(7,825) | | $— | | | $(7,825) | ||||||||||||||||||||
| | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||
Weighted average shares outstanding, basic | | 13,385,267 | | 22,287,671 | | 24,522,329 | | (5) | | 46,810,000 | | (20,400,108) | | (5) | | 26,409,892 | | 13,385,267 | | 22,287,671 | | 24,522,329 | | (5) | | 46,810,000 | | (20,400,108) | | (5) | | 26,409,892 | ||||||||||||||||
Basic net (loss) income per share | | $(0.43) | | $0.35 | | | | $(0.26) | | | | $(0.46) | | $(0.43) | | $0.35 | | | | $(0.17) | | | | $(0.30) | ||||||||||||||||||||||||
Weighted average shares outstanding, diluted | | 13,385,267 | | 22,369,863 | | 24,440,137 | | (5) | | 46,810,000 | | (20,400,108) | | (5) | | 26,409,892 | | 13,385,267 | | 22,369,863 | | 24,440,137 | | (5) | | 46,810,000 | | (20,400,108) | | (5) | | 26,409,892 | ||||||||||||||||
Diluted net (loss) income per share | | $(0.43) | | $0.34 | | | | $(0.26) | | | | $(0.46) | | $(0.43) | | $0.34 | | | | $(0.17) | | | | $(0.30) |
1. | Basis of Presentation |
2. | Adjustments to Unaudited Pro Forma Condensed Combined Balance Sheets as of December 31, 2021 |
(A) | Derived from the audited consolidated balance sheet of SpringBig as of December 31, 2021. |
(B) | Derived from the audited balance sheet of Tuatara as of December 31, 2021. |
(1) | To reflect the release of cash from marketable securities held in the trust account. |
(2) | In Scenario 1, which assumes no Tuatara shareholders exercise their redemption rights, the Class A ordinary shares subject to redemption for cash amounting to $200 million would be transferred to permanent equity. In Scenario 2, which assumes the same facts as described in Item 1 above, but also assumes the maximum number of shares are redeemed for cash by the Tuatara shareholders, $197.0 million would be paid out in cash. The $197.0 million, or 19,700,054 shares, represents the maximum redemption amount, after giving effect to payments to redeeming shareholders based on a consummation of the business combination on December 31, 2021. |
(3) | To reflect the payment of an aggregate of $11.9 million of estimated legal, financial advisory and other professional fees related to the business combination, the prepayment of $1.4 million of directors and officers’ insurance premium, the payment of $1.6 million of accounts payable and accrued expenses and the payment of |
(4) | Reflects proceeds received of $13.1 million from the subscription investors in exchange for the issuance of 1,310,000 shares of New SpringBig common stock at a price of $10.00 per share. We closed on the funding of $7,000,000, or 700,000 shares of common stock at $10.00 per share, pursuant to the subscription agreements on February 25, 2022. |
(5) | To reflect the recapitalization of SpringBig through (a) the contribution of all the share capital in SpringBig to New SpringBig common stock, (b) the issuance of 21,500,000 shares of New SpringBig common stock, (c) the elimination of the historical accumulated deficit of Tuatara of $17.2 million, the accounting acquiree and (d) the conversion of 4,000,000 Class B ordinary shares outstanding in Tuatara to New SpringBig common stock, on a one-for-one basis, at the consummation of the business combination. |
(6) | To reflect the forfeiture of 1,000,000 shares of New SpringBig common stock by the sponsor. No entry is reflected due to rounding. |
(7) | To reflect the issuance of 1,000,000 shares of New SpringBig common stock to non-redeeming public shareholders in Scenario 1 and 299,946 shares of New SpringBig common stock to non-redeeming public shareholders in Scenario 2. No entry is reflected due to rounding. |
(8) | Reflects issuance of $11.0 million of 6% Senior Secured Original Issue Discount Convertible Notes (the “Notes”) for proceeds of $10.0 million and a discount of $1.0 million. The Notes will be convertible at the option of the holders beginning at the earlier of (a) the date of effectiveness of a resale registration statement covering the resales of New SpringBig’s shares of common stock underlying the Notes or (b) one year after the issuance of the Notes, in each case at an initial conversion share price of $12.00 per share. The Notes will bear interest at a rate of 6% per annum and amortize after six months, which amortization |
3. | Adjustments to Unaudited Pro Forma Condensed Combined Statement of Operations for the Year Ended December 31, 2021 |
(A) | Derived from the audited consolidated statement of operations of SpringBig for the year ended December 31, 2021. |
(B) | Derived from the audited statements of operations of Tuatara for the year ended December 31, 2021. |
(1) | Represents an adjustment to eliminate interest income on marketable securities held in the trust account as of the beginning of the period. |
(2) | Represents an adjustment to eliminate the effect of the pro forma balance sheet adjustment presented in Entry #2(3) above in the aggregate amount of |
(3) | Represents 6% interest expense incurred on the Notes in the amount of approximately $660,000 for the year ended December 31, 2021 and amortization of the original issue discount to interest expenses in the amount of approximately $500,000 for the year ended December 31, 2021. See the discussion in adjustment (8) of Note 2 above for additional information regarding the Notes. |
(4) | Although the blended statutory rate for the redomesticated entity post business combination would be 21%, the consolidated combined pro forma under both scenarios results in a net loss for tax purposes. As such, a full valuation allowance has been applied resulting in no adjustment. |
(5) | The calculation of weighted average shares outstanding for basic and diluted net income (loss) per share assumes that Tuatara’s initial public offering occurred as of the beginning of the earliest period presented. In addition, as the business combination is being reflected as if it had occurred at the beginning of the periods presented, the calculation of weighted average shares outstanding for basic and diluted net income (loss) per share assumes that the shares have been outstanding for the entire periods presented. This calculation is retroactively adjusted to eliminate the number of shares redeemed for the entire period. |
4. | Net Income (Loss) per Share |
| | Pro Forma Combined Assuming No Redemptions into Cash | | | Pro Forma Combined Assuming Maximum Redemptions into Cash | |
Year Ended December 31, 2021 | | | | | ||
Net loss | | | $ | | | $ |
Weighted average shares outstanding – basic and diluted | | | 46,810,000 | | | 26,409,892 |
Basic and diluted net loss per share | | | $ | | | $ |
Weighted average shares calculations, basic and diluted | | | Pro Forma Combined Assuming No Redemptions into Cash | | | Pro Forma Combined Assuming Maximum Redemptions into Cash |
Tuatara’s public shares | | | 21,000,000 | | | 599,892 |
Tuatara initial stockholders | | | 3,000,000 | | | 3,000,000 |
Subscription investors | | | 1,310,000 | | | 1,310,000 |
SpringBig stockholders | | | 21,500,000 | | | 21,500,000 |
Weighted average shares outstanding – basic and diluted | | | 46,810,000 | | | 26,409,892 |
| | Cayman Islands | | | Delaware | |
Stockholder/Shareholder Approval of Business Combinations | | | Mergers require a special resolution, and any other authorization as may be specified in the relevant articles of association. Parties holding certain security interests in the constituent companies must also consent. All mergers (other than parent/subsidiary mergers) require shareholder approval — there is no exception for smaller mergers. Where a bidder has acquired 90% or more of the shares in a Cayman Islands company, it can compel the acquisition of the shares of the remaining shareholders and thereby become the sole shareholder. A Cayman Islands company may also be acquired through a “scheme of arrangement” sanctioned by a Cayman Islands court and approved by 50%+1 in number and 75% in value of shareholders in attendance and voting at a shareholders’ meeting. | | | Mergers generally require approval of a majority of all outstanding shares. Mergers in which less than 20% of the acquirer’s stock is issued generally do not require acquirer stockholder approval. Mergers in which one corporation owns 90% or more of a second corporation may be completed without the vote of the second corporation’s board of directors or stockholders. |
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Stockholder/Shareholder Votes for Routine Matters | | | Under the Cayman Islands Companies Act, routine corporate matters may be approved by an ordinary resolution (being a resolution passed by a simple majority of the shareholders as being entitled to do so). | | | Generally, approval of routine corporate matters that are put to a stockholder vote require the affirmative vote of the majority of shares present in person or represented by proxy at the meeting and entitled to vote on the subject matter. |
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Appraisal Rights | | | Minority shareholders that dissent from a merger are entitled to be paid the fair market value of their shares, which if necessary may ultimately be determined by the court. | | | Generally, a stockholder of a publicly traded corporation does not have appraisal rights in connection with a merger. Stockholders of a publicly traded corporation do, however, generally have appraisal rights in |
| | Cayman Islands | | | Delaware | |
| | | | connection with a merger if they are required by the terms of a merger agreement to accept for their shares anything except: (a) shares or depository receipts of the corporation surviving or resulting from such merger; (b) shares of stock or depository receipts that will be either listed on a national securities exchange or held of record by more than 2,000 holders; (c) cash in lieu of fractional shares or fractional depository receipts described in (a) and (b) above; or (d) any combination of the shares of stock, depository receipts and cash in lieu of fractional shares or fractional depository receipts described in (a), (b) and (c) above. | ||
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Inspection of Books and Records | | | Shareholders generally do not have any rights to inspect or obtain copies of the register of shareholders or other corporate records of a company. | | | Any stockholder may inspect the corporation’s books and records for a proper purpose during the usual hours for business. |
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Stockholder/Shareholder Lawsuits | | | In the Cayman Islands, the decision to institute proceedings on behalf of a company is generally taken by the company’s board of directors. A shareholder may be entitled to bring a derivative action on behalf of the company, but only in certain limited circumstances. | | | A stockholder may bring a derivative suit subject to procedural requirements (including adopting Delaware as the exclusive forum as per Proposal No. 4 – Organizational Documents Proposal A). |
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Fiduciary Duties of Directors | | | A director owes fiduciary duties to a company, including to exercise loyalty, honesty and good faith to the company as a whole. In addition to fiduciary duties, directors owe a duty of care, diligence and skill. Such duties are owed to the company but may be owed direct to creditors or shareholders in certain limited circumstances. | | | Directors must exercise a duty of care and duty of loyalty and good faith to a corporation and its stockholders. |
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Indemnification of Directors and Officers | | | A Cayman Islands company generally may indemnify its directors or officers except with regard to fraud, dishonesty or willful default or to protect from the consequences of committing a crime. | | | A corporation is generally permitted to indemnify its directors and officers acting in good faith. |
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Limited Liability of Directors | | | Liability of directors may be limited, except with regard to their actual fraud or willful default. | | | Permits limiting or eliminating the monetary liability of a director to a corporation or its stockholders, except with regard to breaches of duty of loyalty, intentional misconduct, unlawful repurchases or dividends, or improper personal benefit. |
Name | | | Age | | | Position |
Albert Foreman | | | 48 | | | Chief Executive Officer and Director |
Mark Zittman | | | 56 | | | Chief Operating Officer and Director |
Sergey Sherman | | | 51 | | | Chief Financial Officer |
Jeffrey Bornstein | | | 56 | | | Director |
Michael Finkelman | | | 58 | | | Director |
Richard Taney | | | 65 | | | Director |
(a) | Upon the closing of any Financing (which is contemplated to fund and close concurrently with the closing of the Business Combination), the Company shall pay to Cantor a non-refundable cash fee equal to 4% of the aggregate maximum gross proceeds received or receivable in connection with such Financing, including, without limitation, aggregate amounts committed by investors to purchase securities, whether or not all securities are issued on the closing date of the Equity Financing. |
(b) | In no event shall the aggregate amount of the fees payable to Cantor pursuant to this section 3 be less than $1,500,000. |
(1) | Estimate based on average marketing spend in similar industries. |
1 | New Frontier Data, December 2020. |
1 | New Frontier Data, December 2020. |
1 | New Frontier Data, December 2020. |
| | Year ended December 31, | |||||||
| | 2019 | | | 2020 | | | 2021 | |
| | (dollars in thousands) | |||||||
Revenue | | | 5,732 | | | 15,183 | | | 24,024 |
Net Loss | | | (2,327) | | | (1,598) | | | (5,750) |
Adjusted EBITDA | | | (2,325) | | | (1,582) | | | (6,361) |
| | | | | | ||||
Annualized Revenue at end of period | | | $10,602 | | | $19,147 | | | $29,547 |
Number of retail clients | | | 289 | | | 759 | | | 1,240 |
Net revenue retention | | | 149% | | | 128% | | | 110% |
| | Year ended December 31, | |||||||
| | 2019 | | | 2020 | | | 2021 | |
| | (dollars in thousands) | |||||||
Net Loss | | | (2,327) | | | (1,598) | | | (5,750) |
Interest income | | | (3) | | | (3) | | | (3) |
Depreciation expense | | | 5 | | | 19 | | | 173 |
EBITDA | | | (2,325) | | | (1,582) | | | (5,580) |
Forgiveness of PPP loan | | | — | | | — | | | (781) |
Adjusted EBITDA | | | (2,325) | | | (1,582) | | | (6,361) |
| | Year Ended December 31, | | | Change | |||||||
| | 2020 | | | 2021 | | | ($) | | | (%) | |
| | (dollars in thousands) | ||||||||||
Revenue | | | 15,183 | | | 24,024 | | | 8,841 | | | 58% |
Cost of revenue | | | 4,978 | | | 6,929 | | | 1,951 | | | 39% |
Gross profit | | | 10,205 | | | 17,095 | | | 6,890 | | | 68% |
| | Year Ended December 31, | | | Change | |||||||
| | 2020 | | | 2021 | | | ($) | | | (%) | |
| | (dollars in thousands) | ||||||||||
Operating expenses: | | | | | | | | | ||||
Selling, servicing and marketing | | | 4,843 | | | 10,185 | | | 5,342 | | | 110% |
Technology and software development | | | 4,391 | | | 8,410 | | | 4,019 | | | 92% |
General and administrative | | | 2,553 | | | 4,859 | | | 2,306 | | | 90% |
Depreciation expense | | | 19 | | | 173 | | | 154 | | | 810% |
Total operating expenses | | | 11,806 | | | 23,627 | | | 11,821 | | | 110% |
Loss from operations | | | (1,601) | | | (6,532) | | | (4,931) | | | 308% |
Interest and other income | | | 3 | | | 784 | | | 781 | | | 26033% |
Net Income before tax | | | (1,598) | | | (5,748) | | | (4,150) | | | 260% |
Provision for income taxes | | | — | | | 2 | | | — | | | — |
Net Loss | | | (1,598) | | | (5,750) | | | (4,152) | | | 260% |
| | Year ended December 31, | | | Change | |||||||
| | 2019 | | | 2020 | | | $ | | | % | |
| | (dollars in thousands) | ||||||||||
Revenue | | | 5,732 | | | 15,183 | | | 9,451 | | | 165% |
Cost of revenue | | | 2,086 | | | 4,978 | | | 2,892 | | | 139% |
Gross profit | | | 3,646 | | | 10,205 | | | 6,559 | | | 180% |
Operating expenses: | | | | | | | | | ||||
Selling, servicing and marketing | | | 2,402 | | | 4,843 | | | 2,441 | | | 102% |
Technology and software development | | | 2,168 | | | 4,391 | | | 2,223 | | | 103% |
General and administrative | | | 1,401 | | | 2,553 | | | 1,152 | | | 82% |
Depreciation expense | | | 5 | | | 19 | | | 14 | | | 280% |
Total operating expenses | | | 5,976 | | | 11,806 | | | 5,830 | | | 98% |
Loss from operations | | | (2,330) | | | (1,601) | | | 729 | | | -31% |
Interest and other income | | | 3 | | | 3 | | | $— | | | 0% |
Net Income before tax | | | (2,327) | | | (1,598) | | | 729 | | | -31% |
Provision for income taxes | | | — | | | — | | | — | | | — |
Net Loss | | | (2,327) | | | (1,598) | | | 729 | | | -31% |
| | Year Ended December 31, | | | Change | |||||||
| | 2020 | | | 2021 | | | ($) | | | (%) | |
| | (dollars in thousands) | ||||||||||
Revenue | | | 15,183 | | | 24,024 | | | 8,841 | | | 58% |
Cost of revenue | | | 4,978 | | | 6,929 | | | 1,951 | | | 39% |
Gross profit | | | 10,205 | | | 17,095 | | | 6,890 | | | 68% |
| | Year Ended December 31, | | | Change | |||||||
| | 2020 | | | 2021 | | | ($) | | | (%) | |
| | (dollars in thousands) | ||||||||||
Operating expenses: | | | | | | | | | ||||
Selling, servicing and marketing | | | 4,843 | | | 10,185 | | | 5,342 | | | 110% |
Technology and software development | | | 4,391 | | | 8,410 | | | 4,019 | | | 92% |
General and administrative | | | 2,553 | | | 4,859 | | | 2,306 | | | 90% |
Depreciation expense | | | 19 | | | 173 | | | 154 | | | 810% |
Total operating expenses | | | 11,806 | | | 23,627 | | | 11,821 | | | 110% |
Loss from operations | | | (1,601) | | | (6,532) | | | (4,931) | | | 308% |
Interest and other income | | | 3 | | | 784 | | | 781 | | | 26033% |
Net Income before tax | | | (1,598) | | | (5,748) | | | (4,150) | | | 260% |
Provision for income taxes | | | — | | | 2 | | | — | | | — |
Net Loss | | | (1,598) | | | (5,750) | | | (4,152) | | | 260% |
| | Year ended December 31, | | | Change | |||||||
| | 2019 | | | 2020 | | | $ | | | % | |
| | (dollars in thousands) | ||||||||||
Revenue | | | 5,732 | | | 15,183 | | | 9,451 | | | 165% |
Cost of revenue | | | 2,086 | | | 4,978 | | | 2,892 | | | 139% |
Gross profit | | | 3,646 | | | 10,205 | | | 6,559 | | | 180% |
Operating expenses: | | | | | | | | | ||||
Selling, servicing and marketing | | | 2,402 | | | 4,843 | | | 2,441 | | | 102% |
Technology and software development | | | 2,168 | | | 4,391 | | | 2,223 | | | 103% |
General and administrative | | | 1,401 | | | 2,553 | | | 1,152 | | | 82% |
Depreciation expense | | | 5 | | | 19 | | | 14 | | | 280% |
Total operating expenses | | | 5,976 | | | 11,806 | | | 5,830 | | | 98% |
Loss from operations | | | (2,330) | | | (1,601) | | | 729 | | | -31% |
Interest and other income | | | 3 | | | 3 | | | $— | | | 0% |
Net Income before tax | | | (2,327) | | | (1,598) | | | 729 | | | -31% |
Provision for income taxes | | | — | | | — | | | — | | | — |
Net Loss | | | (2,327) | | | (1,598) | | | 729 | | | -31% |
| | Year ended December 31, | |||||||
| | 2019 | | | 2020 | | | 2021 | |
| | (dollars in thousands) | |||||||
Cash | | | 2,623 | | | 10,447 | | | 2,227 |
Accounts receivable, net | | | 817 | | | 1,141 | | | 3,045 |
Working capital | | | 8 | | | (930) | | | 3,895 |
| | Year ended December 31, | |||||||
| | 2019 | | | 2020 | | | 2021 | |
| | (dollars in thousands) | |||||||
Net cash used in operating activities | | | (2,276) | | | (1,006) | | | (7,884) |
Net cash used in investing activities | | | (33) | | | (195) | | | (374) |
Net cash provided by financing activities | | | | | 9,025 | | | 38 | |
Net increase (decrease) in cash | | | (2,309) | | | 7,824 | | | (8,220) |
| | Payments Due by Period | |||||||||||||
| | Total | | | Less than 1 year | | | 1 - 3 years | | | 3 - 5 years | | | More than 5 years | |
| | (dollars in thousands) | |||||||||||||
Operating lease obligations | | | 1,098 | | | 471 | | | 627 | | | — | | | — |
Name | | | Age | | | Position |
Executive Officers | | | | | ||
Jeffrey Harris | | | 57 | | | Chief Executive Officer and Director |
Paul Sykes | | | 56 | | | Chief Financial Officer |
Navin Anand | | | 47 | | | Chief Technology Officer |
Non-Employee Directors | | | | | ||
Steven Bernstein | | | 61 | | | Director |
Patricia Glassford | | | 58 | | | Director |
Amanda Lannert | | | 49 | | | Director |
Phil Schwarz | | | 43 | | | Director |
Sergey Sherman | | | 51 | | | Director |
Jon Trauben | | | 56 | | | Director |
Name and Principal Position | | | Salary ($) | | | Bonus ($) | | | Option Awards ($)(3) | | | Non-Equity Incentive Plan Compensation ($) | | | All Other Compensation ($) | | | Total ($) |
Jeffrey Harris Chief Executive Officer | | | $265,000 | | | $— | | | $— | | | $— | | | $— | | | $265,000 |
Paul Sykes Chief Financial Officer(1) | | | $172,944 | | | $90,000 | | | $281,250 | | | $— | | | $— | | | $544,194 |
Navin Anand Chief Technology Officer(2) | | | $139,838 | | | $40,000 | | | $206,250 | | | $— | | | $— | | | $386,088 |
(1) | Mr. Sykes was appointed Chief Financial Officer effective April 7, 2021. |
(2) | Mr. Anand was appointed Chief Technology Officer effective April 12, 2021. |
(3) | Amounts represent the aggregate grant date fair value of stock options granted to our named executive officers computed in accordance with ASC Topic 718. Assumptions used to calculate these amounts are included in Note 7 – Common Stock Options accompanying the historical audited consolidated financial statements of SpringBig included in this proxy statement/prospectus. |
| | | | Option Awards | |||||||||||||||||
| | Grant Date | | | Vesting Commencement Date | | | | | Number of securities underlying unexercised options (#) exercisable | | | Number of securities underlying unexercised options (#) unexercisable | | | Option exercise price ($) | | | Option expiration date | ||
Jeffrey Harris | | | 3/17/2019 | | | 3/17/2021 | | | (1) | | | 350,000 | | | 350,000 | | | $0.31 | | | 3/17/2029 |
| | 12/2/2020 | | | 12/2/2021 | | | (1) | | | 31,250 | | | 93,720 | | | $0.75 | | | 12/2/2030 | |
Paul Sykes | | | 6/21/2021 | | | 4/7/2021 | | | (2) | | | 131,250 | | | 243,750 | | | $0.75 | | | 6/21/2031 |
Navin Anand | | | 6/21/2021 | | | 4/12/2021 | | | (2) | | | 96,250 | | | 178,750 | | | $0.75 | | | 6/21/2031 |
(1) | Represents an option vesting with respect to 25% of the shares subject to the option on each one-year anniversary of the grant date. |
(2) | Represents an option vesting with respect to (a) 35% of the shares subject to the option on December 31, 2021, (b) 15% of the shares subject to the option upon the closing of the business combination and (c) 50% of the shares subject to the option ratably over 24 months following the business combination. |
| | Prior to Business Combination and Related Transactions | | | After the Business Combination and Related Transactions | |||||||||||||
Name and Address of Beneficial Owner(1) | | | Number of Ordinary Shares Beneficially Owned | | | Percentage of Outstanding Ordinary Shares | | | Number of Shares of Common Stock Beneficially Owned | | | Percentage of Total Voting Power | | | Number of Shares of Common Stock Beneficially Owned | | | Percentage of Total Voting Power |
5% Stockholders, Directors and Named Executive Officers of Tuatara(1) | | | | | | | | | | | | | ||||||
TCAC Sponsor, LLC(2) | | | 4,870,000 | | | 19.5% | | | 3,870,000 | | | 8.1% | | | 3,870,000 | | | 14.1% |
The Goldman Sachs Group, Inc.(3) 200 West Street New York, NY 10282 | | | 1,358,965 | | | 5.4% | | | 1,426,913 | | | 3.0% | | | 79,170 | | | 0.3% |
Albert Foreman | | | — | | | — | | | — | | | — | | | — | | | — |
Mark Zittman | | | — | | | — | | | — | | | — | | | — | | | — |
Sergey Sherman | | | — | | | — | | | — | | | — | | | — | | | — |
Jeffrey Bornstein(4) | | | 40,000 | | | * | | | 40,000 | | | * | | | 40,000 | | | * |
Michael Finkelman | | | 40,000 | | | * | | | 40,000 | | | * | | | 40,000 | | | * |
Richard Taney | | | 50,000 | | | * | | | 50,000 | | | * | | | 50,000 | | | * |
All directors and executive officers of Tuatara as a group pre-business combination (six individuals) | | | 130,000 | | | * | | | 130,000 | | | * | | | 130,000 | | | * |
| | | | | | | | | | | | |||||||
5% Stockholders, Directors and Named Executive Officers of New SpringBig Post-Business Combination:(5) | | | | | | | | | | | | | ||||||
Tuatara Capital Fund II, L.P.(6) 655 Third Avenue, 8th floor New York, NY 10017 | | | 4,870,000 | | | 19.5% | | | 4,470,000 | | | 9.3% | | | 4,470,000 | | | 16.3% |
Medici Holdings V, Inc. 625 NW 533rd Street, Ste. 250 Boca Raton, Florida 33487 | | | — | | | — | | | 4,720,153 | | | 9.9% | | | 4,720,153 | | | 17.2% |
TVC Capital IV, L.P.(7) 11710 El Camino Real, Suite 100 San Diego, CA 92130 | | | — | | | — | | | 2,463,547 | | | 5.2% | | | 2,463,547 | | | 9.0% |
Altitude Investment Partners, LP 73 Bal Bay Drive Bal Harbor, FL 33154 | | | — | | | — | | | 1,520,894 | | | 3.2% | | | 1,520,894 | | | 5.5% |
Jeffrey Harris(8) | | | — | | | — | | | 5,216,918 | | | 10.9% | | | 5,216,918 | | | 19.0% |
Paul Sykes(9) | | | — | | | — | | | 119,847 | | | * | | | 119,847 | | | 0.4% |
Navin Anand(10) | | | — | | | — | | | 87,888 | | | * | | | 87,888 | | | 0.3% |
Steven Bernstein | | | — | | | — | | | — | | | — | | | — | | | — |
Patricia Glassford | | | — | | | — | | | — | | | — | | | — | | | — |
Amanda Lannert | | | — | | | — | | | — | | | — | | | — | | | — |
Phil Schwarz | | | — | | | — | | | 472,013 | | | 1.0% | | | 472,013 | | | 1.7% |
Sergey Sherman | | | — | | | — | | | — | | | — | | | — | | | — |
Jon Trauben | | | — | | | — | | | — | | | — | | | — | | | — |
All directors and named executive officers of New SpringBig as a group post-business combination (9 individuals): | | | — | | | — | | | 5,896,666 | | | 12.3% | | | 5,896,666 | | | 21.1% |
* | Less than one percent. |
(1) | Unless otherwise noted, the business address of each of the following entities or individuals is 655 Third Avenue, 8th floor, New York, New York 10017, United States of America. |
(2) | Our sponsor is controlled by its sole member, Tuatara Capital Fund II, L.P. (“Fund II”). Fund II is controlled by a board of managers comprised of three individuals - Albert Foreman, Mark Zittman and Marc Riiska. Any action by our sponsor with respect to our company or the founders shares, including voting and dispositive decisions, requires a majority vote of the managers of the board of managers of Fund II. Under the so-called “rule of three,” because voting and dispositive decisions are made by a majority of Fund II’s managers, none of the managers is deemed to be a beneficial owner of our sponsor’s securities, even those in which he holds a pecuniary interest. Accordingly, none of the managers is deemed to have or share beneficial ownership of the founders shares held by our sponsor. |
(3) | Based solely on a Schedule 13G filed on February 1, 2022. Represents 1,358,965 of Class A ordinary shares beneficially owned by the Goldman Sachs Group, Inc. and Goldman Sachs & Co. LLC. Goldman Sachs Group, Inc. and Goldman Sachs & Co. LLC. have shared voting and dispositive power over such shares. Goldman Sachs & Co. LLC is a member of the New York Stock Exchange and other national exchanges. Goldman Sachs & Co. LLC is a direct and indirect wholly-owned subsidiary of The Goldman Sachs Group, Inc. The Goldman Sachs Group, Inc. is a public entity and its common stock is publicly traded on the New York Stock Exchange and it is managed by its board of directors. |
(4) | Shares held by Whipstick Ventures, LLC. Jeffrey Bornstein has a controlling interest in Whipstick Ventures, LLC and may be deemed to beneficially own these shares. |
(5) | Unless otherwise indicated, the business address of each of the persons to be directors or named executive officers of New SpringBig post-business combination is 621 NW 53rd Street, Ste. 250, Boca Raton, Florida 33487. |
(6) | Includes 4,870,000 shares of common stock held by TCAC Sponsor, LLC and 600,000 shares of common stock held by Fund II upon the completion of the business combination pursuant to the PIPE subscription financing. Fund II is the sole member of TCAC Sponsor, LLC. Accordingly, shares of common stock held by TCAC Sponsor, LLC may be attributed to Fund II. Fund II is controlled by a board of managers comprised of three individuals - Albert Foreman, Mark Zittman and Marc Riiska. Any action by Fund II with respect to New SpringBig or the shares of common stock, including voting and dispositive decisions, requires a majority vote of the managers of the board of managers. Under the so-called “rule of three,” because voting and dispositive decisions are made by a majority of Fund II’s managers, none of the managers of is deemed to be a beneficial owner of Fund II’s securities, even those in which he holds a pecuniary interest. Accordingly, none of the managers is deemed to have or share beneficial ownership of the shares of common stock held by Fund II. |
(7) | Includes 1,963,547 shares of common stock held by TVC Capital IV, L.P. upon the consummation of the business combination and 500,000 shares of common stock to be purchased as part of the PIPE subscription financing by TVC Capital IV, L.P. and TVC Capital Partners IV, L.P. TVC Capital IV, L.P. is an affiliate of TVC Capital Partners IV, L.P. Each of TVC Capital IV LP and TVC Capital Partners IV LP is directly controlled by TVC Capital IV GP, LLC (“GP IV”). Each of Steven Hamerslag and Jeb S. Spencer is a managing member of GP IV and may be deemed to have shared voting and dispositive power over the shares held by the foregoing entities. The foregoing is not an admission by any of Steven Hamerslag and Jeb S. Spencer that he is the beneficial owner of the shares held by the foregoing entities. The address for each of the foregoing persons is 11710 El Camino Real, Suite 100, San Diego, CA 92130. |
(8) | Includes the shares of common stock held by Medici Holdings V, Inc., an estate planning vehicle through which Mr. Harris shares ownership with family members of Mr. Harris and for which Mr. Harris may be deemed to have investment discretion and voting power. Also, includes 10,000 shares of common stock to be purchased by Mr. Harris as part of the PIPE subscription financing. |
(9) | Includes 9,219 options exercisable for shares of common stock within 60 days of the business combination. |
(10) | Includes 6,761 options exercisable for shares of common stock within 60 days of the business combination. |
| | Fair Market Value of Shares of Common Stock | |||||||||||||||||||||||||
Redemption Date (period to expiration of warrants) | | | $10.00 | | | $11.00 | | | $12.00 | | | $13.00 | | | $14.00 | | | $15.00 | | | $16.00 | | | $17.00 | | | $18.00 |
60 months | | | 0.261 | | | 0.281 | | | 0.297 | | | 0.311 | | | 0.324 | | | 0.337 | | | 0.348 | | | 0.358 | | | 0.361 |
57 months | | | 0.257 | | | 0.277 | | | 0.294 | | | 0.310 | | | 0.324 | | | 0.337 | | | 0.348 | | | 0.358 | | | 0.361 |
54 months | | | 0.252 | | | 0.272 | | | 0.291 | | | 0.307 | | | 0.322 | | | 0.335 | | | 0.347 | | | 0.357 | | | 0.361 |
51 months | | | 0.246 | | | 0.268 | | | 0.287 | | | 0.304 | | | 0.320 | | | 0.333 | | | 0.346 | | | 0.357 | | | 0.361 |
48 months | | | 0.241 | | | 0.263 | | | 0.283 | | | 0.301 | | | 0.317 | | | 0.332 | | | 0.344 | | | 0.356 | | | 0.361 |
45 months | | | 0.235 | | | 0.258 | | | 0.279 | | | 0.298 | | | 0.315 | | | 0.330 | | | 0.343 | | | 0.356 | | | 0.361 |
42 months | | | 0.228 | | | 0.252 | | | 0.274 | | | 0.294 | | | 0.312 | | | 0.328 | | | 0.342 | | | 0.355 | | | 0.361 |
39 months | | | 0.221 | | | 0.246 | | | 0.269 | | | 0.290 | | | 0.309 | | | 0.325 | | | 0.340 | | | 0.354 | | | 0.361 |
36 months | | | 0.213 | | | 0.239 | | | 0.263 | | | 0.285 | | | 0.305 | | | 0.323 | | | 0.339 | | | 0.353 | | | 0.361 |
33 months | | | 0.205 | | | 0.232 | | | 0.257 | | | 0.280 | | | 0.301 | | | 0.320 | | | 0.337 | | | 0.352 | | | 0.361 |
30 months | | | 0.196 | | | 0.224 | | | 0.250 | | | 0.274 | | | 0.297 | | | 0.316 | | | 0.335 | | | 0.351 | | | 0.361 |
27 months | | | 0.185 | | | 0.214 | | | 0.242 | | | 0.268 | | | 0.291 | | | 0.313 | | | 0.332 | | | 0.350 | | | 0.361 |
24 months | | | 0.173 | | | 0.204 | | | 0.233 | | | 0.260 | | | 0.285 | | | 0.308 | | | 0.329 | | | 0.348 | | | 0.361 |
21 months | | | 0.161 | | | 0.193 | | | 0.223 | | | 0.252 | | | 0.279 | | | 0.304 | | | 0.326 | | | 0.347 | | | 0.361 |
18 months | | | 0.146 | | | 0.179 | | | 0.211 | | | 0.242 | | | 0.271 | | | 0.298 | | | 0.322 | | | 0.345 | | | 0.361 |
15 months | | | 0.130 | | | 0.164 | | | 0.197 | | | 0.230 | | | 0.262 | | | 0.291 | | | 0.317 | | | 0.342 | | | 0.361 |
12 months | | | 0.111 | | | 0.146 | | | 0.181 | | | 0.216 | | | 0.250 | | | 0.282 | | | 0.312 | | | 0.339 | | | 0.361 |
9 months | | | 0.090 | | | 0.125 | | | 0.162 | | | 0.199 | | | 0.237 | | | 0.272 | | | 0.305 | | | 0.336 | | | 0.361 |
6 months | | | 0.065 | | | 0.099 | | | 0.137 | | | 0.178 | | | 0.219 | | | 0.259 | | | 0.296 | | | 0.331 | | | 0.361 |
3 months | | | 0.034 | | | 0.065 | | | 0.104 | | | 0.150 | | | 0.197 | | | 0.243 | | | 0.286 | | | 0.326 | | | 0.361 |
0 months | | | — | | | — | | | 0.042 | | | 0.115 | | | 0.179 | | | 0.233 | | | 0.281 | | | 0.323 | | | 0.361 |
| | Page | |
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Financial Statements: | | | |
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| | ||
| | ||
| |
Audited Financial Statements | | | |
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| | December 31, | ||||
| | 2021 | | | 2020 | |
ASSETS | | | | | ||
Current assets | | | | | ||
Cash | | | $621,472 | | | $185,752 |
Prepaid expenses | | | 259,939 | | | 0 |
Total Current Assets | | | 881,411 | | | 185,752 |
| | | | |||
Deferred offering costs | | | 0 | | | 417,083 |
Investments held in Trust Account | | | 200,035,810 | | | 0 |
TOTAL ASSETS | | | $200,917,221 | | | $602,835 |
| | | | |||
LIABILITIES, CLASS A ORDINARY SHARES SUBJECT TO POSSIBLE REDEMPTION AND SHAREHOLDERS’ EQUITY (DEFICIT) | | | | | ||
Current liabilities | | | | | ||
Accounts payable and accrued expenses | | | $1,555,405 | | | $0 |
Accrued offering costs | | | 108,000 | | | 332,899 |
Promissory note – related party | | | 0 | | | 250,000 |
Total Current Liabilities | | | 1,663,405 | | | 582,899 |
| | | | |||
Warrant Liabilities | | | 9,440,000 | | | 0 |
Deferred underwriting fee payable | | | 7,000,000 | | | 0 |
Total Liabilities | | | 18,103,405 | | | 582,899 |
| | | | |||
Commitments and Contingencies | | | 0 | | | 0 |
Class A ordinary shares subject to possible redemption 20,000,000 and 0 shares at $10.00 per share at December 31, 2021 and 2020, respectively | | | 200,000,000 | | | 0 |
| | | | |||
Shareholders’ Equity (Deficit) | | | | | ||
Preference shares, $0.0001 par value; 1,000,000 shares authorized; NaN issued or outstanding | | | 0 | | | 0 |
Class A ordinary shares, $0.0001 par value; 200,000,000 shares authorized -0- shares issued and outstanding at December 31, 2021 and 2020 | | | 0 | | | 0 |
Class B ordinary shares, $0.0001 par value; 20,000,000 shares authorized; 5,000,000 and 5,031,250 (1) shares issued and outstanding at December 31, 2021 and 2020, respectively | | | 500 | | | 503 |
Additional paid-in capital | | | 0 | | | 24,497 |
Accumulated deficit | | | (17,186,684) | | | (5,064) |
Total Shareholder’s Equity (Deficit) | | | (17,186,184) | | | 19,936 |
TOTAL LIABILITIES, CLASS A ORDINARY SHARES SUBJECT TO POSSIBLE REDEMPTION AND SHAREHOLDERS’ EQUITY (DEFICIT) | | | $200,917,221 | | | $602,835 |
(1) | Excludes an aggregate of up to 656,250 shares that are subject to forfeiture if the over-allotment option is not exercised in full or in part by the underwriters (see Note 5). On January 26, 2021, the Sponsor returned 1,437,500 Class B ordinary shares to the Company, which were canceled, and on February 11, 2021 the Company effected a share capitalization pursuant to which an additional 718,750 Founder Shares were issued resulting in an aggregate of 5,031,250 Class B ordinary shares outstanding (see Note 5). All share and per-share amounts have been retroactively restated to reflect the share cancellation. |
| | Year Ended December 31, 2021 | | | Period from January 24, 2020 (Inception) through December 31, 2020 | |
Operating and formation costs | | | $2,035,074 | | | $5,064 |
Loss from operations | | | (2,035,074) | | | (5,064) |
| | | | |||
Other income (expense): | | | | | ||
Change in fair value of warrant liabilities | | | 12,960,000 | | | 0 |
Transaction costs allocated to warrant liabilities | | | (853,386) | | | 0 |
Compensation expense | | | (2,400,000) | | | 0 |
Interest earned on investments held in Trust Account | | | 35,810 | | | 0 |
Other income (expense), net | | | 9,742,424 | | | 0 |
| | | | |||
Net income (loss) | | | $7,707,350 | | | $(5,064) |
| | | ||||
Basic weighted average shares outstanding, Class A ordinary shares | | | 17,369,863 | | | 0 |
| | | | |||
Basic net income per share, Class A ordinary shares | | | $0.35 | | | $0 |
| | | | |||
Basic weighted average shares outstanding, Class B ordinary shares | | | 4,917,808 | | | 4,375,000 |
| | | | |||
Basic net income per share, Class B ordinary shares | | | $0.35 | | | $0 |
| | | | |||
Diluted weighted average shares outstanding, Class B ordinary shares | | | 5,000,000 | | | 4,375,000 |
| | | | |||
Diluted net income per share, Class B ordinary shares | | | $0.34 | | | $0 |
| | Class B Ordinary Shares | | | Additional Paid-in Capital | | | Accumulated Deficit | | | Total Shareholders’ Equity (Deficit) | ||||
| | Shares | | | Amount | | |||||||||
Balance – January 24, 2020 (inception) | | | 0 | | | $0 | | | $0 | | | $0 | | | $0 |
| | | | | |||||||||||
Issuance of Class B ordinary shares to Sponsor | | | 5,031,250 | | | 503 | | | 24,497 | | | 0 | | | 25,000 |
| | | | | |||||||||||
Net loss | | | — | | | 0 | | | 0 | | | (5,064) | | | (5,064) |
| | | | | |||||||||||
Balance – December 31, 2020 | | | 5,031,250 | | | 503 | | | 24,497 | | | (5,064) | | | 19,936 |
| | | | | |||||||||||
Forfeiture of Founder Shares | | | (31,250) | | | (3) | | | 0 | | | 3 | | | 0 |
| | | | | |||||||||||
Accretion for Class A ordinary shares to redemption amount | | | — | | | 0 | | | (24,497) | | | (24,888,973) | | | (24,913,470) |
| | | | | |||||||||||
Net income | | | — | | | 0 | | | 0 | | | 7,707,350 | | | 7,707,350 |
| | | | | |||||||||||
Balance – December 31, 2021 | | | 5,000,000 | | | $500 | | | $0 | | | $(17,186,684) | | | $(17,186,184) |
| | Year Ended December 31, 2021 | | | Period from January 24, 2020 (Inception) through December 31, 2020 | |
Cash Flows from Operating Activities: | | | | | ||
Net income (loss) | | | $7,707,350 | | | $(5,064) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | | | | | ||
Formation cost paid by Sponsor in exchange for issuance of founder shares | | | 0 | | | 5,000 |
Interest earned on investments securities held in Trust Account | | | (35,810) | | | 0 |
Change in fair value of warrants | | | (12,960,000) | | | 0 |
Transaction costs allocated to warrants | | | 853,386 | | | 0 |
Compensation expense | | | 2,400,000 | | | |
Changes in operating assets and liabilities: | | | | | ||
Prepaid expenses and other current assets | | | (259,939) | | | 0 |
Accounts payable and accrued expenses | | | 1,555,405 | | | 0 |
Net cash used in operating activities | | | (739,608) | | | (64) |
| | | | |||
Cash Flows from Investing Activities: | | | | | ||
Investment of cash in Trust Account | | | (200,000,000) | | | 0 |
Net cash used in investing activities | | | (200,000,000) | | | 0 |
| | | | |||
Cash Flows from Financing Activities: | | | | | ||
Proceeds from issuance of Class B ordinary shares to Sponsor | | | 196,000,000 | | | 25,000 |
Proceeds from sale of Private Placements Warrants | | | 6,000,000 | | | 0 |
Proceeds from promissory note – related party | | | 0 | | | 210,000 |
Repayment of promissory note – related party | | | (250,000) | | | 0 |
Payment of offering costs | | | (574,672) | | | (49,184) |
Net cash provided by financing activities | | | 201,175,328 | | | 185,816 |
| | | | |||
Net Change in Cash | | | 435,720 | | | 185,752 |
Cash – Beginning of period | | | 185,752 | | | 0 |
Cash – End of period | | | $621,472 | | | $185,752 |
| | | | |||
Non-Cash investing and financing activities: | | | | | ||
Offering costs included in accrued offering costs | | | $108,000 | | | $332,899 |
Offering costs paid through promissory note | | | $0 | | | $35,000 |
Deferred underwriting fee payable | | | $7,000,000 | | | $0 |
Gross proceeds | | | $200,000,000 |
Less: | | | |
Proceeds allocated to Public Warrants | | | (14,000,000) |
Class A ordinary shares issuance costs | | | (10,913,470) |
Plus: | | | |
Accretion of carrying value to redemption value | | | 24,913,470 |
Class A ordinary shares subject to possible redemption | | | $200,000,000 |
| | Year Ended December 31, 2021 | | | Period from January 24, 2020 (Inception) through December 31, 2020 | |||||||
| | Class A | | | Class B | | | Class A | | | Class B | |
Basic net income (loss) per ordinary share | | | | | | | | | ||||
Numerator: | | | | | | | | | ||||
Allocation of net income (loss), as adjusted | | | $6,006,712 | | | $1,700,638 | | | $0 | | | $(5,064) |
Denominator: | | | | | | | | | ||||
Basic weighted average shares outstanding | | | 17,369,863 | | | 4,917,808 | | | 0 | | | 4,375,000 |
Basic net income per ordinary share | | | $0.35 | | | $0.35 | | | $0 | | | $0 |
| | | | | | | | |||||
Diluted net income (loss) per ordinary share | | | | | | | | | ||||
Numerator: | | | | | | | | | ||||
Allocation of net income (loss), as adjusted | | | $5,984,642 | | | $1,722,708 | | | $0 | | | $(5,064) |
Denominator: | | | | | | | | | ||||
Diluted weighted average shares outstanding | | | 17,369,863 | | | 5,000,000 | | | 0 | | | 4,375,000 |
Diluted net income per ordinary share | | | $0.34 | | | $0.34 | | | $0 | | | $0 |
| | December 31, | ||||
| | 2021 | | | 2020 | |
ASSETS | | | | | ||
Current assets | | | | | ||
Cash | | | $621,472 | | | $185,752 |
Prepaid expenses | | | 259,939 | | | 0 |
Total Current Assets | | | 881,411 | | | 185,752 |
| | | | |||
Deferred offering costs | | | 0 | | | 417,083 |
Investments held in Trust Account | | | 200,035,810 | | | 0 |
TOTAL ASSETS | | | $200,917,221 | | | $602,835 |
| | | | |||
LIABILITIES, CLASS A ORDINARY SHARES SUBJECT TO POSSIBLE REDEMPTION AND SHAREHOLDERS’ EQUITY (DEFICIT) | | | | | ||
Current liabilities | | | | | ||
Accounts payable and accrued expenses | | | $1,555,405 | | | $0 |
Accrued offering costs | | | 108,000 | | | 332,899 |
Promissory note – related party | | | 0 | | | 250,000 |
Total Current Liabilities | | | 1,663,405 | | | 582,899 |
| | | | |||
Warrant Liabilities | | | 9,440,000 | | | 0 |
Deferred underwriting fee payable | | | 7,000,000 | | | 0 |
Total Liabilities | | | 18,103,405 | | | 582,899 |
| | | | |||
Commitments and Contingencies | | | 0 | | | 0 |
Class A ordinary shares subject to possible redemption 20,000,000 and 0 shares at $10.00 per share at December 31, 2021 and 2020, respectively | | | 200,000,000 | | | 0 |
| | | | |||
Shareholders’ Equity (Deficit) | | | | | ||
Preference shares, $0.0001 par value; 1,000,000 shares authorized; NaN issued or outstanding | | | 0 | | | 0 |
Class A ordinary shares, $0.0001 par value; 200,000,000 shares authorized -0- shares issued and outstanding at December 31, 2021 and 2020 | | | 0 | | | 0 |
Class B ordinary shares, $0.0001 par value; 20,000,000 shares authorized; 5,000,000 and 5,031,250 (1) shares issued and outstanding at December 31, 2021 and 2020, respectively | | | 500 | | | 503 |
Additional paid-in capital | | | 0 | | | 24,497 |
Accumulated deficit | | | (17,186,684) | | | (5,064) |
Total Shareholder’s Equity (Deficit) | | | (17,186,184) | | | 19,936 |
TOTAL LIABILITIES, CLASS A ORDINARY SHARES SUBJECT TO POSSIBLE REDEMPTION AND SHAREHOLDERS’ EQUITY (DEFICIT) | | | $200,917,221 | | | $602,835 |
(1) | Excludes an aggregate of up to 656,250 shares that are subject to forfeiture if the over-allotment option is not exercised in full or in part by the underwriters (see Note 5). On January 26, 2021, the Sponsor returned 1,437,500 Class B ordinary shares to the Company, which were canceled, and on February 11, 2021 the Company effected a share capitalization pursuant to which an additional 718,750 Founder Shares were issued resulting in an aggregate of 5,031,250 Class B ordinary shares outstanding (see Note 5). All share and per-share amounts have been retroactively restated to reflect the share cancellation. |
| | Year Ended December 31, 2021 | | | Period from January 24, 2020 (Inception) through December 31, 2020 | |
Operating and formation costs | | | $2,035,074 | | | $5,064 |
Loss from operations | | | (2,035,074) | | | (5,064) |
| | | | |||
Other income (expense): | | | | | ||
Change in fair value of warrant liabilities | | | 12,960,000 | | | 0 |
Transaction costs allocated to warrant liabilities | | | (853,386) | | | 0 |
Compensation expense | | | (2,400,000) | | | 0 |
Interest earned on investments held in Trust Account | | | 35,810 | | | 0 |
Other income (expense), net | | | 9,742,424 | | | 0 |
| | | | |||
Net income (loss) | | | $7,707,350 | | | $(5,064) |
| | | ||||
Basic weighted average shares outstanding, Class A ordinary shares | | | 17,369,863 | | | 0 |
| | | | |||
Basic net income per share, Class A ordinary shares | | | $0.35 | | | $0 |
| | | | |||
Basic weighted average shares outstanding, Class B ordinary shares | | | 4,917,808 | | | 4,375,000 |
| | | | |||
Basic net income per share, Class B ordinary shares | | | $0.35 | | | $0 |
| | | | |||
Diluted weighted average shares outstanding, Class B ordinary shares | | | 5,000,000 | | | 4,375,000 |
| | | | |||
Diluted net income per share, Class B ordinary shares | | | $0.34 | | | $0 |
| | Class B Ordinary Shares | | | Additional Paid-in Capital | | | Accumulated Deficit | | | Total Shareholders’ Equity (Deficit) | ||||
| | Shares | | | Amount | | |||||||||
Balance – January 24, 2020 (inception) | | | 0 | | | $0 | | | $0 | | | $0 | | | $0 |
| | | | | |||||||||||
Issuance of Class B ordinary shares to Sponsor | | | 5,031,250 | | | 503 | | | 24,497 | | | 0 | | | 25,000 |
| | | | | |||||||||||
Net loss | | | — | | | 0 | | | 0 | | | (5,064) | | | (5,064) |
| | | | | |||||||||||
Balance – December 31, 2020 | | | 5,031,250 | | | 503 | | | 24,497 | | | (5,064) | | | 19,936 |
| | | | | |||||||||||
Forfeiture of Founder Shares | | | (31,250) | | | (3) | | | 0 | | | 3 | | | 0 |
| | | | | |||||||||||
Accretion for Class A ordinary shares to redemption amount | | | — | | | 0 | | | (24,497) | | | (24,888,973) | | | (24,913,470) |
| | | | | |||||||||||
Net income | | | — | | | 0 | | | 0 | | | 7,707,350 | | | 7,707,350 |
| | | | | |||||||||||
Balance – December 31, 2021 | | | 5,000,000 | | | $500 | | | $0 | | | $(17,186,684) | | | $(17,186,184) |
| | Year Ended December 31, 2021 | | | Period from January 24, 2020 (Inception) through December 31, 2020 | |
Cash Flows from Operating Activities: | | | | | ||
Net income (loss) | | | $7,707,350 | | | $(5,064) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | | | | | ||
Formation cost paid by Sponsor in exchange for issuance of founder shares | | | 0 | | | 5,000 |
Interest earned on investments securities held in Trust Account | | | (35,810) | | | 0 |
Change in fair value of warrants | | | (12,960,000) | | | 0 |
Transaction costs allocated to warrants | | | 853,386 | | | 0 |
Compensation expense | | | 2,400,000 | | | |
Changes in operating assets and liabilities: | | | | | ||
Prepaid expenses and other current assets | | | (259,939) | | | 0 |
Accounts payable and accrued expenses | | | 1,555,405 | | | 0 |
Net cash used in operating activities | | | (739,608) | | | (64) |
| | | | |||
Cash Flows from Investing Activities: | | | | | ||
Investment of cash in Trust Account | | | (200,000,000) | | | 0 |
Net cash used in investing activities | | | (200,000,000) | | | 0 |
| | | | |||
Cash Flows from Financing Activities: | | | | | ||
Proceeds from issuance of Class B ordinary shares to Sponsor | | | 196,000,000 | | | 25,000 |
Proceeds from sale of Private Placements Warrants | | | 6,000,000 | | | 0 |
Proceeds from promissory note – related party | | | 0 | | | 210,000 |
Repayment of promissory note – related party | | | (250,000) | | | 0 |
Payment of offering costs | | | (574,672) | | | (49,184) |
Net cash provided by financing activities | | | 201,175,328 | | | 185,816 |
| | | | |||
Net Change in Cash | | | 435,720 | | | 185,752 |
Cash – Beginning of period | | | 185,752 | | | 0 |
Cash – End of period | | | $621,472 | | | $185,752 |
| | | | |||
Non-Cash investing and financing activities: | | | | | ||
Offering costs included in accrued offering costs | | | $108,000 | | | $332,899 |
Offering costs paid through promissory note | | | $0 | | | $35,000 |
Deferred underwriting fee payable | | | $7,000,000 | | | $0 |
Gross proceeds | | | $200,000,000 |
Less: | | | |
Proceeds allocated to Public Warrants | | | (14,000,000) |
Class A ordinary shares issuance costs | | | (10,913,470) |
Plus: | | | |
Accretion of carrying value to redemption value | | | 24,913,470 |
Class A ordinary shares subject to possible redemption | | | $200,000,000 |
| | Year Ended December 31, 2021 | | | Period from January 24, 2020 (Inception) through December 31, 2020 | |||||||
| | Class A | | | Class B | | | Class A | | | Class B | |
Basic net income (loss) per ordinary share | | | | | | | | | ||||
Numerator: | | | | | | | | | ||||
Allocation of net income (loss), as adjusted | | | $6,006,712 | | | $1,700,638 | | | $0 | | | $(5,064) |
Denominator: | | | | | | | | | ||||
Basic weighted average shares outstanding | | | 17,369,863 | | | 4,917,808 | | | 0 | | | 4,375,000 |
Basic net income per ordinary share | | | $0.35 | | | $0.35 | | | $0 | | | $0 |
| | | | | | | | |||||
Diluted net income (loss) per ordinary share | | | | | | | | | ||||
Numerator: | | | | | | | | | ||||
Allocation of net income (loss), as adjusted | | | $5,984,642 | | | $1,722,708 | | | $0 | | | $(5,064) |
Denominator: | | | | | | | | | ||||
Diluted weighted average shares outstanding | | | 17,369,863 | | | 5,000,000 | | | 0 | | | 4,375,000 |
Diluted net income per ordinary share | | | $0.34 | | | $0.34 | | | $0 | | | $0 |
Description | | | Level | | | December 31, 2021 | | | December 31, 2020 |
Assets: | | | | | | | |||
Investments held in Trust Account – U.S. Treasury Securities Money Market Fund | | | 1 | | | $200,035,810 | | | $0 |
| | | | | | ||||
Liabilities: | | | | | | | |||
Warrant Liability – Public Warrants | | | 1 | | | $5,900,000 | | | $0 |
Warrant Liability – Private Placement Warrants | | | 2 | | | $3,540,000 | | | $0 |
| | Private Placement | | | Public | | | Warrant Liabilities | |
Fair value as of January 1, 2021 | | | $0 | | | $0 | | | $0 |
Initial measurement on February 17, 2021 | | | 8,400,000 | | | 14,000,000 | | | 22,400,000 |
Change in fair value | | | (1,500,000) | | | (2,500,000) | | | (4,000,000) |
Fair value as of June 30, 2021 | | | $6,900,000 | | | $11,500,000 | | | $18,400,000 |
Transfers to Level 1 | | | 0 | | | 11,500,000 | | | 11,500,000 |
Transfers to Level 2 | | | 6,900,000 | | | 0 | | | 6,900,000 |
Fair value as of December 31, 2021 | | | $0 | | | $0 | | | $0 |
| | December 31, | ||||
| | 2020 | | | 2019 | |
ASSETS | | | | | ||
Current assets: | | | | | ||
Cash and cash equivalents | | | $10,447,441 | | | $2,622,859 |
Accounts receivable, net | | | 1,140,824 | | | 817,359 |
Related party receivable | | | 76,760 | | | 33,518 |
Contract assets | | | 265,950 | | | 158,823 |
Prepaid expenses and other current assets | | | 122,967 | | | 42,498 |
Total current assets | | | 12,053,942 | | | 3,675,057 |
Property and equipment, net | | | 204,975 | | | 28,398 |
Deposits and other assets | | | 63,582 | | | 41,517 |
Total assets | | | $12,322,499 | | | $3,744,972 |
| | | | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | ||
Current liabilities: | | | | | ||
Accounts payable | | | $861,923 | | | $308,026 |
Related party payable | | | 55,564 | | | 44,118 |
Accrued wages and commissions | | | 352,044 | | | 291,828 |
Accrued expenses | | | 186,249 | | | 76,938 |
PPP loan payable, current portion | | | 520,632 | | | — |
Contract liabilities | | | 560,060 | | | 323,169 |
Total current liabilities | | | 2,536,472 | | | 1,044,079 |
PPP loan payable, net of current portion | | | 260,316 | | | — |
Total liabilities | | | 2,796,788 | | | 1,044,079 |
| | | | |||
Commitments and Contingencies: | | | | | ||
| | | | |||
Stockholders’ equity: | | | | | ||
Series B Preferred | | | 4,585 | | | — |
Series A Preferred | | | 5,089 | | | 5,089 |
Series Seed Preferred | | | 6,912 | | | 6,912 |
Common stock | | | 13,200 | | | 14,614 |
Additional paid-in capital | | | 16,970,433 | | | 8,550,787 |
Accumulated deficit | | | (7,474,508) | | | (5,876,509) |
Total stockholders’ equity | | | 9,525,711 | | | 2,700,893 |
Total liabilities and stockholders’ equity | | | $12,322,499 | | | $3,744,972 |
| | Years Ended December 31, | ||||
| | 2020 | | | 2019 | |
Revenues | | | $15,183,134 | | | $5,732,259 |
Cost of revenues | | | 4,978,038 | | | 2,086,168 |
Gross Profit | | | 10,205,096 | | | 3,646,091 |
Operating expenses: | | | | | ||
Selling, servicing and marketing | | | 5,028,144 | | | 2,401,999 |
Technology and software development | | | 4,391,182 | | | 2,168,310 |
General and administrative | | | 2,386,606 | | | 1,406,227 |
| | 11,805,932 | | | 5,976,536 | |
Loss from operations | | | (1,600,836) | | | (2,330,445) |
Interest income | | | 2,837 | | | 3,716 |
Loss before income taxes | | | (1,597,999) | | | (2,326,729) |
Income tax expense | | | — | | | — |
Net Loss | | | $(1,597,999) | | | $(2,326,729) |
Net loss per common share: | | | | | ||
Basic and diluted | | | $(0.11) | | | $(0.16) |
Weighted-average common shares outstanding - basic and diluted | | | 14,047,342 | | | 14,614,425 |
| | Series B Preferred | | | Series A Preferred | | | Series Seed Preferred | | | Common Stock | | | Additional Paid-in capital | | | Accumulated Deficit | | | Total | |||||||||||||
| | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | |||||||||
Balance-January 1, 2019 | | | — | | | — | | | 5,088,944 | | | $5,089 | | | 6,911,715 | | | $6,912 | | | 14,614,425 | | | $14,614 | | | $8,309,743 | | | $(3,549,780) | | | $4,786,578 |
Stock-based compensation | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 241,044 | | | — | | | 241,044 |
Net loss | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (2,326,729) | | | (2,326,729) |
Balance-December 31, 2019 | | | — | | | — | | | 5,088,944 | | | 5,089 | | | 6,911,715 | | | 6,912 | | | 14,614,425 | | | 14,614 | | | 8,550,787 | | | (5,876,509) | | | 2,700,893 |
Stock-based compensation | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 179,247 | | | — | | | 179,247 |
Exercise of stock options | | | — | | | — | | | — | | | — | | | — | | | — | | | 33,436 | | | 33 | | | 12,282 | | | — | | | 12,315 |
Redemption of common stock | | | — | | | — | | | — | | | — | ��� | | — | | | — | | | (1,446,986) | | | (1,147) | | | (3,267,294) | | | — | | | (3,268,741) |
Issuance of Series B Preferred Stock | | | 4,585,202 | | | 4,585 | | | — | | | — | | | — | | | — | | | — | | | — | | | 11,495,411 | | | — | | | 11,499,996 |
Net loss | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (1,597,999) | | | (1,597,999) |
Balance-December 31, 2020 | | | 4,585,202 | | | $4,585 | | | 5,088,944 | | | $5,089 | | | 6,911,715 | | | $6,912 | | | 13,200,875 | | | $13,200 | | | $16,970,433 | | | $(7,474,508) | | | $9,525,711 |
| | Years Ended December 31, | ||||
| | 2020 | | | 2019 | |
Operating activities: | | | | | ||
Net Loss | | | $(1,597,999) | | | $(2,326,729) |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | ||
Depreciation and amortization | | | 18,788 | | | 4,845 |
Stock-based compensation expense | | | 179,247 | | | 241,044 |
Changes in operating assets and liabilities: | | | | | ||
Accounts receivable | | | (323,465) | | | (702,975) |
Related party receivable | | | (43,242) | | | (33,518) |
Prepaid expenses and other current assets | | | (80,469) | | | (8,938) |
Contract assets | | | (107,127) | | | (158,823) |
Deposits and other assets | | | (22,065) | | | (8,517) |
Accounts payable and other liabilities | | | 723,724 | | | 552,707 |
Related party payable | | | 11,146 | | | (84,084) |
Contract liabilities | | | 236,891 | | | 249,300 |
Net cash used in operating activities | | | (1,004,571) | | | (2,275,688) |
Investing activities: | | | | | ||
Purchases of property and equipment | | | (195,365) | | | (33,243) |
Net cash used in investing activities | | | (195,365) | | | (33,243) |
Financing activities: | | | | | ||
Proceeds from PPP loan | | | 780,948 | | | — |
Proceeds from issuance of preferred stock | | | 11,499,996 | | | — |
Repurchase of common stock | | | (3,268,741) | | | — |
Proceeds from exercise of stock options | | | 12,315 | | | — |
Net cash provided by financing activities | | | 9,024,518 | | | — |
Net increase (decrease) in cash and cash equivalents | | | 7,824,582 | | | (2,308,931) |
Cash and cash equivalents at beginning of year | | | 2,622,859 | | | 4,931,790 |
Cash and cash equivalents at end of year | | | $10,447,441 | | | $2,622,859 |
| | | | |||
Supplemental Disclosure of Cash Flow Information | | | | | ||
Cash paid during the year for interest | | | $— | | | $— |
Income tax paid during the year | | | $— | | | $— |
| | December 31, 2020 | | | December 31, 2019 | |
Accounts receivable | | | $1,026,522 | | | $616,983 |
Unbilled receivables | | | 264,599 | | | 200,876 |
Less allowance for doubtful accounts | | | (150,297) | | | (500) |
| | | | |||
Accounts receivable, net | | | $1,140,824 | | | $817,359 |
| | December 31, 2020 | | | December 31, 2019 | |
Deferred sales commissions | | | $265,950 | | | $158,823 |
| | December 31, 2020 | | | December 31, 2019 | |
Deferred revenue | | | $468,212 | | | $225,924 |
Deferred set-up revenues | | | 91,848 | | | 97,245 |
| | | | |||
Contract liabilities | | | $560,060 | | | $323,169 |
| | 2020 | | | 2019 | |
Contract liabilities at start of the year | | | $323,169 | | | $73,869 |
Amounts invoiced during the year | | | 8,970,292 | | | 3,440,369 |
Less revenue recognized during the year | | | (8,733,401) | | | (3,191,069) |
| | | | |||
Contract liabilities at end of the year | | | $560,060 | | | $323,169 |
| | December 31, 2020 | | | December 31, 2019 | |
Computer equipment | | | $83,208 | | | $33,243 |
Data warehouse | | | 145,400 | | | — |
Less accumulated depreciation | | | (23,633) | | | (4,845) |
| | | | |||
Property and Equipment | | | $204,975 | | | $28,398 |
2021 | | | $520,632 |
2022 | | | 260,316 |
| | $780,948 |
| | December 31, 2020 | | | December 31, 2019 | |
Loss per share: | | | | | ||
| | | | |||
Numerator: | | | | | ||
Net loss | | | $(1,597,999) | | | $(2,326,729) |
| | | | |||
Denominator | | | | | ||
Weighted-average common shares outstanding - basic and diluted | | | 14,047,342 | | | 14,614,425 |
Basic and diluted loss per common share | | | $(0.11) | | | $(0.16) |
| | December 31, 2020 | | | December 31, 2019 | |
Shares subject to Series A Preferred Stock Conversion | | | 5,088,944 | | | 5,088,944 |
Shares subject to Series B Preferred Stock Conversion | | | 4,585,202 | | | — |
Shares subject to Seed Preferred Stock Conversion | | | 6,911,715 | | | 6,911,715 |
Shares vested and subject to exercise of stock options | | | 3,838,429 | | | 2,970,724 |
Shares unvested and subject to exercise of stock options | | | 2,202,614 | | | 1,626,776 |
| | Options Outstanding | | | Options Vested and Exercisable | ||||||||||
Fixed Options | | | Number of Options | | | Weighted Average Exercise Price (Per Share) | | | Number of Options | | | Weighted Average Remaining Contractual Life (Years) | | | Weighted Average Exercise Price (Per Share) |
January 1, 2019 | | | 2,820,000 | | | $0.11 | | | 1,645,103 | | | 9.17 | | | $0.11 |
| | | | | | | | | | ||||||
Forfeited | | | (70,000) | | | $0.31 | | | | | | | |||
Granted | | | 1,847,500 | | | $0.31 | | | | | | | |||
| | | | | | | | | | ||||||
December 31, 2019 | | | 4,597,500 | | | $0.19 | | | 2,970,724 | | | 8.48 | | | $0.17 |
| | | | | | | | | | ||||||
Exercised | | | (33,436) | | | $0.37 | | | | | | | |||
Forfeited | | | (56,668) | | | $0.33 | | | | | | | |||
Cancelled | | | (41,353) | | | $0.39 | | | | | | | |||
Granted | | | 1,575,000 | | | $0.68 | | | | | | | |||
| | | | | | | | | | ||||||
December 31, 2020 | | | 6,041,043 | | | $0.31 | | | 3,838,429 | | | 7.62 | | | $0.19 |
| | Options Outstanding | | | Options Vested and Exercisable | |||||||
Fixed Options | | | Number of Options | | | Aggregate Intrinsic value | | | Number of Options | | | Aggregate Intrinsic value |
January 1, 2019 | | | 2,820,000 | | | $564,000 | | | 1,645,103 | | | $329,021 |
December 31, 2019 | | | 4,597,500 | | | $1,161,675 | | | 2,970,724 | | | $811,714 |
December 31, 2020 | | | 6,041,043 | | | $2,648,709 | | | 3,838,429 | | | $2,145,830 |
| | 2020 | | | 2019 | |
Risk-free rate | | | 0.79% | | | 2.38% |
Expected life (years) | | | 5.76 | | | 5.65 |
Expected volatility | | | 52.53% | | | 54.77% |
Expected dividend yield | | | 0.00% | | | 0.00% |
Year Ending December 31 | | | Amount |
2021 | | | $354,000 |
2022 | | | 365,000 |
2023 | | | 354,000 |
2024 | | | 264,000 |
| | ||
| | $1,337,000 |
| | December 31, 2020 | | | December 31, 2019 | |||||||
| | Amount | | | Rate | | | Amount | | | Rate | |
Tax provision (benefit) at statutory rate | | | $(335,580) | | | 21% | | | $(488,613) | | | 21% |
Increase (decrease) in taxes resulting from | | | | | | | | | ||||
State and local income tax | | | (68,813) | | | 4% | | | (100,165) | | | 4% |
Permanent differences | | | 2,996 | | | 0% | | | 4,503 | | | 0% |
Valuation allowance increase (decrease) | | | 401,397 | | | -25% | | | 584,275 | | | -25% |
Provision (benefit) for income | | | $— | | | 0% | | | $— | | | 0% |
| | 2020 | | | 2019 | |
Tax effect of: | | | | | ||
Accrued expenses | | | $35,483 | | | $17,742 |
Other | | | 7,301 | | | (10,644) |
Depreciation and amortization | | | 111,677 | | | 224,123 |
Federal net operating loss | | | 1,463,592 | | | 1,030,866 |
Stock-based compensation | | | 146,570 | | | 101,139 |
| | | | |||
Net deferred income tax asset | | | 1,764,623 | | | 1,363,226 |
Valuation Allowance | | | (1,764,623) | | | (1,363,226) |
| | | | |||
Net deferred income tax asset | | | $— | | | $— |
| | December 31, | ||||
| | 2021 | | | 2020 | |
ASSETS | | | | | ||
Current assets | | | | | ||
Cash | | | $621,472 | | | $185,752 |
Prepaid expenses | | | 259,939 | | | 0 |
Total Current Assets | | | 881,411 | | | 185,752 |
| | | | |||
Deferred offering costs | | | 0 | | | 417,083 |
Investments held in Trust Account | | | 200,035,810 | | | 0 |
TOTAL ASSETS | | | $200,917,221 | | | $602,835 |
| | | | |||
LIABILITIES, CLASS A ORDINARY SHARES SUBJECT TO POSSIBLE REDEMPTION AND SHAREHOLDERS’ EQUITY (DEFICIT) | | | | | ||
Current liabilities | | | | | ||
Accounts payable and accrued expenses | | | $1,555,405 | | | $0 |
Accrued offering costs | | | 108,000 | | | 332,899 |
Promissory note – related party | | | 0 | | | 250,000 |
Total Current Liabilities | | | 1,663,405 | | | 582,899 |
| | | | |||
Warrant Liabilities | | | 9,440,000 | | | 0 |
Deferred underwriting fee payable | | | 7,000,000 | | | 0 |
Total Liabilities | | | 18,103,405 | | | 582,899 |
| | | | |||
Commitments and Contingencies | | | 0 | | | 0 |
Class A ordinary shares subject to possible redemption 20,000,000 and 0 shares at $10.00 per share at December 31, 2021 and 2020, respectively | | | 200,000,000 | | | 0 |
| | | | |||
Shareholders’ Equity (Deficit) | | | | | ||
Preference shares, $0.0001 par value; 1,000,000 shares authorized; NaN issued or outstanding | | | 0 | | | 0 |
Class A ordinary shares, $0.0001 par value; 200,000,000 shares authorized -0- shares issued and outstanding at December 31, 2021 and 2020 | | | 0 | | | 0 |
Class B ordinary shares, $0.0001 par value; 20,000,000 shares authorized; 5,000,000 and 5,031,250 (1) shares issued and outstanding at December 31, 2021 and 2020, respectively | | | 500 | | | 503 |
Additional paid-in capital | | | 0 | | | 24,497 |
Accumulated deficit | | | (17,186,684) | | | (5,064) |
Total Shareholder’s Equity (Deficit) | | | (17,186,184) | | | 19,936 |
TOTAL LIABILITIES, CLASS A ORDINARY SHARES SUBJECT TO POSSIBLE REDEMPTION AND SHAREHOLDERS’ EQUITY (DEFICIT) | | | $200,917,221 | | | $602,835 |
(1) | Excludes an aggregate of up to 656,250 shares that are subject to forfeiture if the over-allotment option is not exercised in full or in part by the underwriters (see Note 5). On January 26, 2021, the Sponsor returned 1,437,500 Class B ordinary shares to the Company, which were canceled, and on February 11, 2021 the Company effected a share capitalization pursuant to which an additional 718,750 Founder Shares were issued resulting in an aggregate of 5,031,250 Class B ordinary shares outstanding (see Note 5). All share and per-share amounts have been retroactively restated to reflect the share cancellation. |
| | Year Ended December 31, 2021 | | | Period from January 24, 2020 (Inception) through December 31, 2020 | |
Operating and formation costs | | | $2,035,074 | | | $5,064 |
Loss from operations | | | (2,035,074) | | | (5,064) |
| | | | |||
Other income (expense): | | | | | ||
Change in fair value of warrant liabilities | | | 12,960,000 | | | 0 |
Transaction costs allocated to warrant liabilities | | | (853,386) | | | 0 |
Compensation expense | | | (2,400,000) | | | 0 |
Interest earned on investments held in Trust Account | | | 35,810 | | | 0 |
Other income (expense), net | | | 9,742,424 | | | 0 |
| | | | |||
Net income (loss) | | | $7,707,350 | | | $(5,064) |
| | | ||||
Basic weighted average shares outstanding, Class A ordinary shares | | | 17,369,863 | | | 0 |
| | | | |||
Basic net income per share, Class A ordinary shares | | | $0.35 | | | $0 |
| | | | |||
Basic weighted average shares outstanding, Class B ordinary shares | | | 4,917,808 | | | 4,375,000 |
| | | | |||
Basic net income per share, Class B ordinary shares | | | $0.35 | | | $0 |
| | | | |||
Diluted weighted average shares outstanding, Class B ordinary shares | | | 5,000,000 | | | 4,375,000 |
| | | | |||
Diluted net income per share, Class B ordinary shares | | | $0.34 | | | $0 |
| | Class B Ordinary Shares | | | Additional Paid-in Capital | | | Accumulated Deficit | | | Total Shareholders’ Equity (Deficit) | ||||
| | Shares | | | Amount | | |||||||||
Balance – January 24, 2020 (inception) | | | 0 | | | $0 | | | $0 | | | $0 | | | $0 |
| | | | | |||||||||||
Issuance of Class B ordinary shares to Sponsor | | | 5,031,250 | | | 503 | | | 24,497 | | | 0 | | | 25,000 |
| | | | | |||||||||||
Net loss | | | — | | | 0 | | | 0 | | | (5,064) | | | (5,064) |
| | | | | |||||||||||
Balance – December 31, 2020 | | | 5,031,250 | | | 503 | | | 24,497 | | | (5,064) | | | 19,936 |
| | | | | |||||||||||
Forfeiture of Founder Shares | | | (31,250) | | | (3) | | | 0 | | | 3 | | | 0 |
| | | | | |||||||||||
Accretion for Class A ordinary shares to redemption amount | | | — | | | 0 | | | (24,497) | | | (24,888,973) | | | (24,913,470) |
| | | | | |||||||||||
Net income | | | — | | | 0 | | | 0 | | | 7,707,350 | | | 7,707,350 |
| | | | | |||||||||||
Balance – December 31, 2021 | | | 5,000,000 | | | $500 | | | $0 | | | $(17,186,684) | | | $(17,186,184) |
| | Year Ended December 31, 2021 | | | Period from January 24, 2020 (Inception) through December 31, 2020 | |
Cash Flows from Operating Activities: | | | | | ||
Net income (loss) | | | $7,707,350 | | | $(5,064) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | | | | | ||
Formation cost paid by Sponsor in exchange for issuance of founder shares | | | 0 | | | 5,000 |
Interest earned on investments securities held in Trust Account | | | (35,810) | | | 0 |
Change in fair value of warrants | | | (12,960,000) | | | 0 |
Transaction costs allocated to warrants | | | 853,386 | | | 0 |
Compensation expense | | | 2,400,000 | | | |
Changes in operating assets and liabilities: | | | | | ||
Prepaid expenses and other current assets | | | (259,939) | | | 0 |
Accounts payable and accrued expenses | | | 1,555,405 | | | 0 |
Net cash used in operating activities | | | (739,608) | | | (64) |
| | | | |||
Cash Flows from Investing Activities: | | | | | ||
Investment of cash in Trust Account | | | (200,000,000) | | | 0 |
Net cash used in investing activities | | | (200,000,000) | | | 0 |
| | | | |||
Cash Flows from Financing Activities: | | | | | ||
Proceeds from issuance of Class B ordinary shares to Sponsor | | | 196,000,000 | | | 25,000 |
Proceeds from sale of Private Placements Warrants | | | 6,000,000 | | | 0 |
Proceeds from promissory note – related party | | | 0 | | | 210,000 |
Repayment of promissory note – related party | | | (250,000) | | | 0 |
Payment of offering costs | | | (574,672) | | | (49,184) |
Net cash provided by financing activities | | | 201,175,328 | | | 185,816 |
| | | | |||
Net Change in Cash | | | 435,720 | | | 185,752 |
Cash – Beginning of period | | | 185,752 | | | 0 |
Cash – End of period | | | $621,472 | | | $185,752 |
| | | | |||
Non-Cash investing and financing activities: | | | | | ||
Offering costs included in accrued offering costs | | | $108,000 | | | $332,899 |
Offering costs paid through promissory note | | | $0 | | | $35,000 |
Deferred underwriting fee payable | | | $7,000,000 | | | $0 |
| | 2021 | | | 2020 | |
| | (In thousands except share data) | ||||
ASSETS | | | | | ||
Assets | | | | | ||
Current assets: | | | | | ||
Cash and cash equivalents | | | $2,227 | | | $10,447 |
Accounts receivable, net | | | 3,045 | | | 1,141 |
Related party receivable | | | — | | | 77 |
Contract assets | | | 364 | | | 266 |
Prepaid expenses and other current assets | | | 843 | | | 123 |
Total current assets | | | 6,479 | | | 12,054 |
Property and equipment, net | | | 480 | | | 205 |
Deposits | | | 84 | | | 64 |
Total assets | | | $7,043 | | | $12,323 |
| | | | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | ||
Liabilities | | | | | ||
Current liabilities: | | | | | ||
Accounts payable | | | $412 | | | $861 |
Related party payable | | | 5 | | | 56 |
Accrued wages and commissions | | | 805 | | | 360 |
Accrued expenses | | | 855 | | | 140 |
Other liabilities | | | 57 | | | 39 |
PPP loan payable, current portion | | | — | | | 521 |
Contract liabilities | | | 450 | | | 560 |
Total current liabilities | | | 2,584 | | | 2,537 |
PPP loan payable, net of current portion | | | — | | | 260 |
Total liabilities | | | $2,584 | | | $2,797 |
| | | | |||
Commitments and Contingencies | | | | | ||
| | | | |||
Stockholders’ Equity: | | | | | ||
Series B Preferred (par value $0.001 per shares, 4,584,202 authorized, issued and outstanding at December 31, 2021 and 2020) | | | $5 | | | $5 |
Series A Preferred (par value $0.001 per shares, 5,088,944 authorized, issued and outstanding at December 31, 2021 and 2020) | | | 5 | | | 5 |
Series Seed Preferred (par value $0.001 per shares, 6,911,715 authorized, issued and outstanding at December 31, 2021 and 2020) | | | 7 | | | 7 |
Common stock (par value $0.001 per shares, 38,395,870 authorized at December 31, 2021 and 2020; 13,541,324 and 13,200,875 issued and outstanding as of December 31, 2021 and 2020) | | | 14 | | | 14 |
Additional paid-in-capital | | | 17,653 | | | 16,970 |
Accumulated deficit | | | (13,225) | | | (7,475) |
Total stockholders’ equity | | | 4,459 | | | 9,526 |
Total liabilities and stockholders’ equity | | | $7,043 | | | $12,323 |
| | 2021 | | | 2020 | |
| | (In thousands, except share and per share data) | ||||
Revenues | | | $24,024 | | | $15,183 |
Cost of revenues | | | 6,929 | | | 4,978 |
Gross Profit | | | 17,095 | | | 10,205 |
Operating expenses | | | | | ||
Selling, servicing and marketing | | | 10,185 | | | 4,843 |
Technology and software development | | | 8,410 | | | 4,391 |
General and administrative | | | 5,032 | | | 2,572 |
| | 23,627 | | | 11,806 | |
| | | | |||
Loss from operations | | | (6,532) | | | (1,601) |
Interest income | | | 3 | | | 3 |
Forgiveness of PPP loan | | | 781 | | | — |
Loss before provision for income taxes | | | (5,748) | | | (1,598) |
Provision for income taxes | | | 2 | | | — |
Net loss | | | $(5,750) | | | $(1,598) |
Net loss per common share: | | | | | ||
Basic and diluted | | | $(0.43) | | | $(0.11) |
Weighted-average common shares outstanding - basic and diluted | | | 13,385,267 | | | 14,047,342 |
| | Series B Preferred | | | Series A Preferred | | | Series Seed Preferred | | | Common Stock | | | Additional Paid-in Capital | | | Accumulated Deficit | | | Total | |||||||||||||
| | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | |||||||||
Balance - January 1, 2020 | | | — | | | $— | | | 5,089 | | | $5 | | | 6,912 | | | $7 | | | 14,614 | | | $15 | | | $8,551 | | | $(5,877) | | | $2,701 |
Stock-based compensation | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 179 | | | — | | | 179 |
Exercise of stock options | | | — | | | — | | | — | | | — | | | — | | | — | | | 33 | | | — | | | 12 | | | — | | | 12 |
Redemption of common stock | | | — | | | — | | | — | | | — | | | — | | | — | | | (1,447) | | | (1) | | | (3,267) | | | — | | | (3,268) |
Issuance of Series B preferred stock | | | 4,584 | | | 5 | | | — | | | — | | | — | | | — | | | — | | | — | | | 11,495 | | | — | | | 11,500 |
Net loss | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (1,598) | | | (1,598) |
Balance - December 31, 2020 | | | 4,584 | | | $5 | | | 5,089 | | | $5 | | | 6,912 | | | $7 | | | 13,200 | | | $14 | | | $16,970 | | | $(7,475) | | | $9,526 |
| | | | | | | | | | | | | | | | | | | | | | ||||||||||||
Stock-based compensation | | | — | | | — | | | — | | | — | | | — | | | — | | | 114 | | | — | | | 595 | | | — | | | 595 |
Exercise of stock options | | | — | | | — | | | — | | | — | | | — | | | — | | | 159 | | | — | | | 38 | | | — | | | 38 |
Issuance of common stock | | | — | | | — | | | — | | | — | | | — | | | — | | | 67 | | | — | | | 50 | | | — | | | 50 |
Net loss | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (5,750) | | | (5,750) |
Balance - December 31, 2021 | | | 4,584 | | | $5 | | | 5,089 | | | $5 | | | 6,912 | | | $7 | | | 13,540 | | | $14 | | | $17,653 | | | $(13,225) | | | $4,459 |
| | 2021 | | | 2020 | |
| | (In thousands) | ||||
Cash flows from operating activities: | | | | | ||
Net loss | | | $(5,750) | | | $(1,598) |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | ||
Depreciation and amortization | | | 173 | | | 19 |
Stock-based compensation expense | | | 595 | | | 179 |
Forgiveness of PPP loan | | | (781) | | | — |
Changes in operating assets and liabilities: | | | | | ||
Accounts receivable | | | (1,903) | | | (323) |
Related party receivable | | | 77 | | | (43) |
Prepaid expenses and other current assets | | | (720) | | | (80) |
Contract assets | | | (98) | | | (107) |
Deposits and other assets | | | (20) | | | (22) |
Accounts payable and other liabilities | | | 704 | | | 721 |
Related party payable | | | (51) | | | 11 |
Contract liabilities | | | (110) | | | 237 |
Net cash used in operating activities | | | (7,884) | | | (1,006) |
Cash flows from investing activities: | | | | | ||
Business combination, net of cash acquired | | | (122) | | | — |
Purchases of property and equipment | | | (252) | | | (195) |
Net cash used in investing activities | | | (374) | | | (195) |
Cash flows from financing activities: | | | | | ||
Proceeds from PPP loan | | | — | | | 781 |
Proceeds from issuance of common stock | | | — | | | 11,500 |
Repurchase of common stock | | | — | | | (3,268) |
Proceeds from exercise of stock options, net | | | 38 | | | 12 |
Net cash provided by financing activities | | | 38 | | | 9,025 |
Net (decrease) increase in cash and cash equivalents | | | (8,220) | | | 7,824 |
Cash and cash equivalents at beginning of year | | | 10,447 | | | 2,623 |
Cash and cash equivalents at end of year | | | $2,227 | | | $10,447 |
| | | | |||
Supplemental disclosure of non-cash financing activities | | | | | ||
Issue of common stock for business combination | | | $50 | | | $— |
Indemnity holdback for business combination | | | $23 | | | $— |
Gross proceeds | | | $200,000,000 |
Less: | | | |
Proceeds allocated to Public Warrants | | | (14,000,000) |
Class A ordinary shares issuance costs | | | (10,913,470) |
Plus: | | | |
Accretion of carrying value to redemption value | | | 24,913,470 |
Class A ordinary shares subject to possible redemption | | | $200,000,000 |
| | Year Ended December 31, 2021 | | | Period from January 24, 2020 (Inception) through December 31, 2020 | |||||||
| | Class A | | | Class B | | | Class A | | | Class B | |
Basic net income (loss) per ordinary share | | | | | | | | | ||||
Numerator: | | | | | | | | | ||||
Allocation of net income (loss), as adjusted | | | $6,006,712 | | | $1,700,638 | | | $0 | | | $(5,064) |
Denominator: | | | | | | | | | ||||
Basic weighted average shares outstanding | | | 17,369,863 | | | 4,917,808 | | | 0 | | | 4,375,000 |
Basic net income per ordinary share | | | $0.35 | | | $0.35 | | | $0 | | | $0 |
| | | | | | | | |||||
Diluted net income (loss) per ordinary share | | | | | | | | | ||||
Numerator: | | | | | | | | | ||||
Allocation of net income (loss), as adjusted | | | $5,984,642 | | | $1,722,708 | | | $0 | | | $(5,064) |
Denominator: | | | | | | | | | ||||
Diluted weighted average shares outstanding | | | 17,369,863 | | | 5,000,000 | | | 0 | | | 4,375,000 |
Diluted net income per ordinary share | | | $0.34 | | | $0.34 | | | $0 | | | $0 |
(a) | Upon the closing of any Financing (which is contemplated to fund and close concurrently with the closing of the Business Combination), the Company shall pay to Cantor a non-refundable cash fee equal to 4% of the aggregate maximum gross proceeds received or receivable in connection with such Financing, including, without limitation, aggregate amounts committed by investors to purchase securities, whether or not all securities are issued on the closing date of the Equity Financing. |
(b) | In no event shall the aggregate amount of the fees payable to Cantor pursuant to this section 3 be less than $1,500,000. |
Level 1: | Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. |
Level 2: | Observable inputs other than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets or liabilities and quoted prices for identical assets or liabilities in markets that are not active. |
Level 3: | Unobservable inputs based on our assessment of the assumptions that market participants would use in pricing the asset or liability. |
Description | | | Level | | | December 31, 2021 | | | December 31, 2020 |
Assets: | | | | | | | |||
Investments held in Trust Account – U.S. Treasury Securities Money Market Fund | | | 1 | | | $200,035,810 | | | $0 |
| | | | | | ||||
Liabilities: | | | | | | | |||
Warrant Liability – Public Warrants | | | 1 | | | $5,900,000 | | | $0 |
Warrant Liability – Private Placement Warrants | | | 2 | | | $3,540,000 | | | $0 |
| | At February 17, 2021 (Initial Measurement) | |
Stock price | | | $10.00 |
Strike price | | | $11.50 |
Term (in years) | | | 5.0 |
Volatility | | | 25.0% |
Risk-free rate | | | 0.85% |
Dividend yield | | | 0.0% |
| | Private Placement | | | Public | | | Warrant Liabilities | |
Fair value as of January 1, 2021 | | | $0 | | | $0 | | | $0 |
Initial measurement on February 17, 2021 | | | 8,400,000 | | | 14,000,000 | | | 22,400,000 |
Change in fair value | | | (1,500,000) | | | (2,500,000) | | | (4,000,000) |
Fair value as of June 30, 2021 | | | $6,900,000 | | | $11,500,000 | | | $18,400,000 |
Transfers to Level 1 | | | 0 | | | 11,500,000 | | | 11,500,000 |
Transfers to Level 2 | | | 6,900,000 | | | 0 | | | 6,900,000 |
Fair value as of December 31, 2021 | | | $0 | | | $0 | | | $0 |
(a) | Upon the closing of any Financing (which is contemplated to fund and close concurrently with the closing of the Business Combination), the Company shall pay to CF&CO a non-refundable cash fee equal to 4% of the aggregate maximum gross proceeds received or receivable in connection with such Financing, including, without limitation, aggregate amounts committed by investors to purchase securities, whether or not all securities are issued on the closing date of the Equity Financing. |
(b) | In no event shall the aggregate amount of the fees payable to CF&CO pursuant to this section 3 be less than $1,500,000. |
(c) | The fees payable pursuant to this section 3 shall be in addition to any other fees that the Company may be required to pay directly to any prospective investor to secure its financing commitment. |
(d) | For the avoidance of doubt, if the structure of a Financing contemplates multiple issuances, financing availability that is contingent upon the occurrence of some future event or any other delayed consideration structure, such Financing shall be considered a single Financing, and not multiple Financings, and all fees payable pursuant to this section 3 for such Financing shall be payable in full on the closing date of such Financing. |
(e) | All fees payable hereunder will be payable in U.S. dollars in immediately available funds to CF&CO for its own account, or as directed by it, free and clear of and without deduction for any and all present or future applicable taxes, levies, imposts, deductions, charges or withholdings and all liabilities with respect thereto (with appropriate gross-up for withholding taxes) and will not be subject to reduction by way of setoff or counterclaim. Once paid, no fee will be refundable under any circumstances. |
| | December 31, | ||||
| | 2020 | | | 2019 | |
ASSETS | | | | | ||
Current assets: | | | | | ||
Cash and cash equivalents | | | $10,447,441 | | | $2,622,859 |
Accounts receivable, net | | | 1,140,824 | | | 817,359 |
Related party receivable | | | 76,760 | | | 33,518 |
Contract assets | | | 265,950 | | | 158,823 |
Prepaid expenses and other current assets | | | 122,967 | | | 42,498 |
Total current assets | | | 12,053,942 | | | 3,675,057 |
Property and equipment, net | | | 204,975 | | | 28,398 |
Deposits and other assets | | | 63,582 | | | 41,517 |
Total assets | | | $12,322,499 | | | $3,744,972 |
| | | | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | ||
Current liabilities: | | | | | ||
Accounts payable | | | $861,923 | | | $308,026 |
Related party payable | | | 55,564 | | | 44,118 |
Accrued wages and commissions | | | 352,044 | | | 291,828 |
Accrued expenses | | | 186,249 | | | 76,938 |
PPP loan payable, current portion | | | 520,632 | | | — |
Contract liabilities | | | 560,060 | | | 323,169 |
Total current liabilities | | | 2,536,472 | | | 1,044,079 |
PPP loan payable, net of current portion | | | 260,316 | | | — |
Total liabilities | | | 2,796,788 | | | 1,044,079 |
| | | | |||
Commitments and Contingencies: | | | | | ||
| | | | |||
Stockholders’ equity: | | | | | ||
Series B Preferred | | | 4,585 | | | — |
Series A Preferred | | | 5,089 | | | 5,089 |
Series Seed Preferred | | | 6,912 | | | 6,912 |
Common stock | | | 13,200 | | | 14,614 |
Additional paid-in capital | | | 16,970,433 | | | 8,550,787 |
Accumulated deficit | | | (7,474,508) | | | (5,876,509) |
Total stockholders’ equity | | | 9,525,711 | | | 2,700,893 |
Total liabilities and stockholders’ equity | | | $12,322,499 | | | $3,744,972 |
| | Years Ended December 31, | ||||
| | 2020 | | | 2019 | |
Revenues | | | $15,183,134 | | | $5,732,259 |
Cost of revenues | | | 4,978,038 | | | 2,086,168 |
Gross Profit | | | 10,205,096 | | | 3,646,091 |
Operating expenses: | | | | | ||
Selling, servicing and marketing | | | 5,028,144 | | | 2,401,999 |
Technology and software development | | | 4,391,182 | | | 2,168,310 |
General and administrative | | | 2,386,606 | | | 1,406,227 |
| | 11,805,932 | | | 5,976,536 | |
Loss from operations | | | (1,600,836) | | | (2,330,445) |
Interest income | | | 2,837 | | | 3,716 |
Loss before income taxes | | | (1,597,999) | | | (2,326,729) |
Income tax expense | | | — | | | — |
Net Loss | | | $(1,597,999) | | | $(2,326,729) |
Net loss per common share: | | | | | ||
Basic and diluted | | | $(0.11) | | | $(0.16) |
Weighted-average common shares outstanding - basic and diluted | | | 14,047,342 | | | 14,614,425 |
| | Series B Preferred | | | Series A Preferred | | | Series Seed Preferred | | | Common Stock | | | Additional Paid-in capital | | | Accumulated Deficit | | | Total | |||||||||||||
| | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | |||||||||
Balance-January 1, 2019 | | | — | | | — | | | 5,088,944 | | | $5,089 | | | 6,911,715 | | | $6,912 | | | 14,614,425 | | | $14,614 | | | $8,309,743 | | | $(3,549,780) | | | $4,786,578 |
Stock-based compensation | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 241,044 | | | — | | | 241,044 |
Net loss | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (2,326,729) | | | (2,326,729) |
Balance-December 31, 2019 | | | — | | | — | | | 5,088,944 | | | 5,089 | | | 6,911,715 | | | 6,912 | | | 14,614,425 | | | 14,614 | | | 8,550,787 | | | (5,876,509) | | | 2,700,893 |
Stock-based compensation | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 179,247 | | | — | | | 179,247 |
Exercise of stock options | | | — | | | — | | | — | | | — | | | — | | | — | | | 33,436 | | | 33 | | | 12,282 | | | — | | | 12,315 |
Redemption of common stock | | | — | | | — | | | — | | | — | | | — | | | — | | | (1,446,986) | | | (1,147) | | | (3,267,294) | | | — | | | (3,268,741) |
Issuance of Series B Preferred Stock | | | 4,585,202 | | | 4,585 | | | — | | | — | | | — | | | — | | | — | | | — | | | 11,495,411 | | | — | | | 11,499,996 |
Net loss | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (1,597,999) | | | (1,597,999) |
Balance-December 31, 2020 | | | 4,585,202 | | | $4,585 | | | 5,088,944 | | | $5,089 | | | 6,911,715 | | | $6,912 | | | 13,200,875 | | | $13,200 | | | $16,970,433 | | | $(7,474,508) | | | $9,525,711 |
| | Years Ended December 31, | ||||
| | 2020 | | | 2019 | |
Operating activities: | | | | | ||
Net Loss | | | $(1,597,999) | | | $(2,326,729) |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | ||
Depreciation and amortization | | | 18,788 | | | 4,845 |
Stock-based compensation expense | | | 179,247 | | | 241,044 |
Changes in operating assets and liabilities: | | | | | ||
Accounts receivable | | | (323,465) | | | (702,975) |
Related party receivable | | | (43,242) | | | (33,518) |
Prepaid expenses and other current assets | | | (80,469) | | | (8,938) |
Contract assets | | | (107,127) | | | (158,823) |
Deposits and other assets | | | (22,065) | | | (8,517) |
Accounts payable and other liabilities | | | 723,724 | | | 552,707 |
Related party payable | | | 11,146 | | | (84,084) |
Contract liabilities | | | 236,891 | | | 249,300 |
Net cash used in operating activities | | | (1,004,571) | | | (2,275,688) |
Investing activities: | | | | | ||
Purchases of property and equipment | | | (195,365) | | | (33,243) |
Net cash used in investing activities | | | (195,365) | | | (33,243) |
Financing activities: | | | | | ||
Proceeds from PPP loan | | | 780,948 | | | — |
Proceeds from issuance of preferred stock | | | 11,499,996 | | | — |
Repurchase of common stock | | | (3,268,741) | | | — |
Proceeds from exercise of stock options | | | 12,315 | | | — |
Net cash provided by financing activities | | | 9,024,518 | | | — |
Net increase (decrease) in cash and cash equivalents | | | 7,824,582 | | | (2,308,931) |
Cash and cash equivalents at beginning of year | | | 2,622,859 | | | 4,931,790 |
Cash and cash equivalents at end of year | | | $10,447,441 | | | $2,622,859 |
| | | | |||
Supplemental Disclosure of Cash Flow Information | | | | | ||
Cash paid during the year for interest | | | $— | | | $— |
Income tax paid during the year | | | $— | | | $— |
| | December 31, 2020 | | | December 31, 2019 | |
Accounts receivable | | | $1,026,522 | | | $616,983 |
Unbilled receivables | | | 264,599 | | | 200,876 |
Less allowance for doubtful accounts | | | (150,297) | | | (500) |
| | | | |||
Accounts receivable, net | | | $1,140,824 | | | $817,359 |
| | December 31, 2020 | | | December 31, 2019 | |
Deferred sales commissions | | | $265,950 | | | $158,823 |
| | December 31, 2020 | | | December 31, 2019 | |
Deferred revenue | | | $468,212 | | | $225,924 |
Deferred set-up revenues | | | 91,848 | | | 97,245 |
| | | | |||
Contract liabilities | | | $560,060 | | | $323,169 |
| | 2020 | | | 2019 | |
Contract liabilities at start of the year | | | $323,169 | | | $73,869 |
Amounts invoiced during the year | | | 8,970,292 | | | 3,440,369 |
Less revenue recognized during the year | | | (8,733,401) | | | (3,191,069) |
| | | | |||
Contract liabilities at end of the year | | | $560,060 | | | $323,169 |
| | December 31, 2020 | | | December 31, 2019 | |
Computer equipment | | | $83,208 | | | $33,243 |
Data warehouse | | | 145,400 | | | — |
Less accumulated depreciation | | | (23,633) | | | (4,845) |
| | | | |||
Property and Equipment | | | $204,975 | | | $28,398 |
2021 | | | $520,632 |
2022 | | | 260,316 |
| | $780,948 |
| | December 31, 2020 | | | December 31, 2019 | |
Loss per share: | | | | | ||
| | | | |||
Numerator: | | | | | ||
Net loss | | | $(1,597,999) | | | $(2,326,729) |
| | | | |||
Denominator | | | | | ||
Weighted-average common shares outstanding - basic and diluted | | | 14,047,342 | | | 14,614,425 |
Basic and diluted loss per common share | | | $(0.11) | | | $(0.16) |
| | December 31, 2020 | | | December 31, 2019 | |
Shares subject to Series A Preferred Stock Conversion | | | 5,088,944 | | | 5,088,944 |
Shares subject to Series B Preferred Stock Conversion | | | 4,585,202 | | | — |
Shares subject to Seed Preferred Stock Conversion | | | 6,911,715 | | | 6,911,715 |
Shares vested and subject to exercise of stock options | | | 3,838,429 | | | 2,970,724 |
Shares unvested and subject to exercise of stock options | | | 2,202,614 | | | 1,626,776 |
| | Options Outstanding | | | Options Vested and Exercisable | ||||||||||
Fixed Options | | | Number of Options | | | Weighted Average Exercise Price (Per Share) | | | Number of Options | | | Weighted Average Remaining Contractual Life (Years) | | | Weighted Average Exercise Price (Per Share) |
January 1, 2019 | | | 2,820,000 | | | $0.11 | | | 1,645,103 | | | 9.17 | | | $0.11 |
| | | | | | | | | | ||||||
Forfeited | | | (70,000) | | | $0.31 | | | | | | | |||
Granted | | | 1,847,500 | | | $0.31 | | | | | | | |||
| | | | | | | | | | ||||||
December 31, 2019 | | | 4,597,500 | | | $0.19 | | | 2,970,724 | | | 8.48 | | | $0.17 |
| | | | | | | | | | ||||||
Exercised | | | (33,436) | | | $0.37 | | | | | | | |||
Forfeited | | | (56,668) | | | $0.33 | | | | | | | |||
Cancelled | | | (41,353) | | | $0.39 | | | | | | | |||
Granted | | | 1,575,000 | | | $0.68 | | | | | | | |||
| | | | | | | | | | ||||||
December 31, 2020 | | | 6,041,043 | | | $0.31 | | | 3,838,429 | | | 7.62 | | | $0.19 |
| | Options Outstanding | | | Options Vested and Exercisable | |||||||
Fixed Options | | | Number of Options | | | Aggregate Intrinsic value | | | Number of Options | | | Aggregate Intrinsic value |
January 1, 2019 | | | 2,820,000 | | | $564,000 | | | 1,645,103 | | | $329,021 |
December 31, 2019 | | | 4,597,500 | | | $1,161,675 | | | 2,970,724 | | | $811,714 |
December 31, 2020 | | | 6,041,043 | | | $2,648,709 | | | 3,838,429 | | | $2,145,830 |
| | 2020 | | | 2019 | |
Risk-free rate | | | 0.79% | | | 2.38% |
Expected life (years) | | | 5.76 | | | 5.65 |
Expected volatility | | | 52.53% | | | 54.77% |
Expected dividend yield | | | 0.00% | | | 0.00% |
Year Ending December 31 | | | Amount |
2021 | | | $354,000 |
2022 | | | 365,000 |
2023 | | | 354,000 |
2024 | | | 264,000 |
| | ||
| | $1,337,000 |
| | December 31, 2020 | | | December 31, 2019 | |||||||
| | Amount | | | Rate | | | Amount | | | Rate | |
Tax provision (benefit) at statutory rate | | | $(335,580) | | | 21% | | | $(488,613) | | | 21% |
Increase (decrease) in taxes resulting from | | | | | | | | | ||||
State and local income tax | | | (68,813) | | | 4% | | | (100,165) | | | 4% |
Permanent differences | | | 2,996 | | | 0% | | | 4,503 | | | 0% |
Valuation allowance increase (decrease) | | | 401,397 | | | -25% | | | 584,275 | | | -25% |
Provision (benefit) for income | | | $— | | | 0% | | | $— | | | 0% |
| | 2020 | | | 2019 | |
Tax effect of: | | | | | ||
Accrued expenses | | | $35,483 | | | $17,742 |
Other | | | 7,301 | | | (10,644) |
Depreciation and amortization | | | 111,677 | | | 224,123 |
Federal net operating loss | | | 1,463,592 | | | 1,030,866 |
Stock-based compensation | | | 146,570 | | | 101,139 |
| | | | |||
Net deferred income tax asset | | | 1,764,623 | | | 1,363,226 |
Valuation Allowance | | | (1,764,623) | | | (1,363,226) |
| | | | |||
Net deferred income tax asset | | | $— | | | $— |
| | 2021 | | | 2020 | |
| | (In thousands except share data) | ||||
ASSETS | | | | | ||
Assets | | | | | ||
Current assets: | | | | | ||
Cash and cash equivalents | | | $2,227 | | | $10,447 |
Accounts receivable, net | | | 3,045 | | | 1,141 |
Related party receivable | | | — | | | 77 |
Contract assets | | | 364 | | | 266 |
Prepaid expenses and other current assets | | | 843 | | | 123 |
Total current assets | | | 6,479 | | | 12,054 |
Property and equipment, net | | | 480 | | | 205 |
Deposits | | | 84 | | | 64 |
Total assets | | | $7,043 | | | $12,323 |
| | | | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | ||
Liabilities | | | | | ||
Current liabilities: | | | | | ||
Accounts payable | | | $412 | | | $861 |
Related party payable | | | 5 | | | 56 |
Accrued wages and commissions | | | 805 | | | 360 |
Accrued expenses | | | 855 | | | 140 |
Other liabilities | | | 57 | | | 39 |
PPP loan payable, current portion | | | — | | | 521 |
Contract liabilities | | | 450 | | | 560 |
Total current liabilities | | | 2,584 | | | 2,537 |
PPP loan payable, net of current portion | | | — | | | 260 |
Total liabilities | | | $2,584 | | | $2,797 |
| | | | |||
Commitments and Contingencies | | | | | ||
| | | | |||
Stockholders’ Equity: | | | | | ||
Series B Preferred (par value $0.001 per shares, 4,584,202 authorized, issued and outstanding at December 31, 2021 and 2020) | | | $5 | | | $5 |
Series A Preferred (par value $0.001 per shares, 5,088,944 authorized, issued and outstanding at December 31, 2021 and 2020) | | | 5 | | | 5 |
Series Seed Preferred (par value $0.001 per shares, 6,911,715 authorized, issued and outstanding at December 31, 2021 and 2020) | | | 7 | | | 7 |
Common stock (par value $0.001 per shares, 38,395,870 authorized at December 31, 2021 and 2020; 13,541,324 and 13,200,875 issued and outstanding as of December 31, 2021 and 2020) | | | 14 | | | 14 |
Additional paid-in-capital | | | 17,653 | | | 16,970 |
Accumulated deficit | | | (13,225) | | | (7,475) |
Total stockholders’ equity | | | 4,459 | | | 9,526 |
Total liabilities and stockholders’ equity | | | $7,043 | | | $12,323 |
| | 2021 | | | 2020 | |
| | (In thousands, except share and per share data) | ||||
Revenues | | | $24,024 | | | $15,183 |
Cost of revenues | | | 6,929 | | | 4,978 |
Gross Profit | | | 17,095 | | | 10,205 |
Operating expenses | | | | | ||
Selling, servicing and marketing | | | 10,185 | | | 4,843 |
Technology and software development | | | 8,410 | | | 4,391 |
General and administrative | | | 5,032 | | | 2,572 |
| | 23,627 | | | 11,806 | |
| | | | |||
Loss from operations | | | (6,532) | | | (1,601) |
Interest income | | | 3 | | | 3 |
Forgiveness of PPP loan | | | 781 | | | — |
Loss before provision for income taxes | | | (5,748) | | | (1,598) |
Provision for income taxes | | | 2 | | | — |
Net loss | | | $(5,750) | | | $(1,598) |
Net loss per common share: | | | | | ||
Basic and diluted | | | $(0.43) | | | $(0.11) |
Weighted-average common shares outstanding - basic and diluted | | | 13,385,267 | | | 14,047,342 |
| | Series B Preferred | | | Series A Preferred | | | Series Seed Preferred | | | Common Stock | | | Additional Paid-in Capital | | | Accumulated Deficit | | | Total | |||||||||||||
| | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | |||||||||
Balance - January 1, 2020 | | | — | | | $— | | | 5,089 | | | $5 | | | 6,912 | | | $7 | | | 14,614 | | | $15 | | | $8,551 | | | $(5,877) | | | $2,701 |
Stock-based compensation | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 179 | | | — | | | 179 |
Exercise of stock options | | | — | | | — | | | — | | | — | | | — | | | — | | | 33 | | | — | | | 12 | | | — | | | 12 |
Redemption of common stock | | | — | | | — | | | — | | | — | | | — | | | — | | | (1,447) | | | (1) | | | (3,267) | | | — | | | (3,268) |
Issuance of Series B preferred stock | | | 4,584 | | | 5 | | | — | | | — | | | — | | | — | | | — | | | — | | | 11,495 | | | — | | | 11,500 |
Net loss | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (1,598) | | | (1,598) |
Balance - December 31, 2020 | | | 4,584 | | | $5 | | | 5,089 | | | $5 | | | 6,912 | | | $7 | | | 13,200 | | | $14 | | | $16,970 | | | $(7,475) | | | $9,526 |
| | | | | | | | | | | | | | | | | | | | | | ||||||||||||
Stock-based compensation | | | — | | | — | | | — | | | — | | | — | | | — | | | 114 | | | — | | | 595 | | | — | | | 595 |
Exercise of stock options | | | — | | | — | | | — | | | — | | | — | | | — | | | 159 | | | — | | | 38 | | | — | | | 38 |
Issuance of common stock | | | — | | | — | | | — | | | — | | | — | | | — | | | 67 | | | — | | | 50 | | | — | | | 50 |
Net loss | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (5,750) | | | (5,750) |
Balance - December 31, 2021 | | | 4,584 | | | $5 | | | 5,089 | | | $5 | | | 6,912 | | | $7 | | | 13,540 | | | $14 | | | $17,653 | | | $(13,225) | | | $4,459 |
| | 2021 | | | 2020 | |
| | (In thousands) | ||||
Cash flows from operating activities: | | | | | ||
Net loss | | | $(5,750) | | | $(1,598) |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | ||
Depreciation and amortization | | | 173 | | | 19 |
Stock-based compensation expense | | | 595 | | | 179 |
Forgiveness of PPP loan | | | (781) | | | — |
Changes in operating assets and liabilities: | | | | | ||
Accounts receivable | | | (1,903) | | | (323) |
Related party receivable | | | 77 | | | (43) |
Prepaid expenses and other current assets | | | (720) | | | (80) |
Contract assets | | | (98) | | | (107) |
Deposits and other assets | | | (20) | | | (22) |
Accounts payable and other liabilities | | | 704 | | | 721 |
Related party payable | | | (51) | | | 11 |
Contract liabilities | | | (110) | | | 237 |
Net cash used in operating activities | | | (7,884) | | | (1,006) |
Cash flows from investing activities: | | | | | ||
Business combination, net of cash acquired | | | (122) | | | — |
Purchases of property and equipment | | | (252) | | | (195) |
Net cash used in investing activities | | | (374) | | | (195) |
Cash flows from financing activities: | | | | | ||
Proceeds from PPP loan | | | — | | | 781 |
Proceeds from issuance of common stock | | | — | | | 11,500 |
Repurchase of common stock | | | — | | | (3,268) |
Proceeds from exercise of stock options, net | | | 38 | | | 12 |
Net cash provided by financing activities | | | 38 | | | 9,025 |
Net (decrease) increase in cash and cash equivalents | | | (8,220) | | | 7,824 |
Cash and cash equivalents at beginning of year | | | 10,447 | | | 2,623 |
Cash and cash equivalents at end of year | | | $2,227 | | | $10,447 |
| | | | |||
Supplemental disclosure of non-cash financing activities | | | | | ||
Issue of common stock for business combination | | | $50 | | | $— |
Indemnity holdback for business combination | | | $23 | | | $— |
| | December 31, | ||||
| | 2021 | | | 2020 | |
Accounts receivable | | | $2,533 | | | $1,027 |
Unbilled receivables | | | 809 | | | 264 |
| | 3,342 | | | 1,291 | |
Less allowance for doubtful accounts | | | (297) | | | (150) |
Accounts receivable, net | | | $3,045 | | | $1,141 |
| | December 31, | ||||
| | 2021 | | | 2020 | |
Computer equipment | | | $225 | | | $83 |
Data warehouse | | | 256 | | | 145 |
Software | | | 196 | | | — |
| | 677 | | | 228 | |
Less accumulated depreciation and amortization | | | (197) | | | (23) |
Property and Equipment | | | $480 | | | $205 |
| | December 31 | ||||
| | 2021 | | | 2020 | |
Revenue | | | | | ||
Brand revenue | | | $654 | | | $241 |
Retail revenue | | | 23,370 | | | 14,942 |
Total Revenue | | | $24,024 | | | $15,183 |
| | December 31 | ||||
| | 2021 | | | 2020 | |
Retail revenue | | | | | ||
United States | | | $23,180 | | | $14,942 |
Canada | | | 190 | | | — |
Brand revenue | | | | | ||
United States | | | 654 | | | 241 |
| | $24,024 | | | $15,183 |
| | December 31 | ||||
| | 2021 | | | 2020 | |
Deferred sales commissions | | | $364 | | | $266 |
| | December 31 | ||||
| | 2021 | | | 2020 | |
Deferred revenue retail | | | $231 | | | $468 |
Deferred set-up revenues | | | 101 | | | 92 |
Deferred brands | | | 118 | | | — |
Contract liabilities | | | $450 | | | $560 |
| | December 31 | ||||
| | 2021 | | | 2020 | |
Contract liabilities at start of the year | | | $560 | | | $323 |
Amounts invoiced during the year | | | 13,512 | | | 8,970 |
Less revenue recognized during the year | | | (13,622) | | | (8,733) |
Contract liabilities at end of the year | | | $450 | | | $560 |
| | December 31, 2021 | |
Fair value of shares | | | $135 |
Less: Post combination cost - restricted stocks | | | (85) |
Fair value of net shares | | | 50 |
Cash consideration | | | 132 |
Indemnity holdback | | | 23 |
Fair value of purchase consideration | | | 205 |
Cash | | | $9 |
Goodwill | | | — |
Intangibles (Software) | | | 196 |
Fair value of assets | | | $205 |
| | Options Outstanding | | | Options Vested and Exercisable | ||||||||||
Fixed Options | | | Number of Options | | | Weighted Average Exercise Price (Per Share) | | | Number of Options | | | Weighted Average Remaining Contractual Life (Years) | | | Weighted Average Exercise Price (Per Share) |
Outstanding Balance, January 1, 2020 | | | 4,597,500 | | | $0.19 | | | 2,970,724 | | | 8.48 | | | $0.17 |
Options granted | | | 1,575,000 | | | $0.68 | | | | | | | |||
Options exercised | | | (33,436) | | | $0.37 | | | | | | | |||
Options forfeited | | | (56,668) | | | $0.33 | | | | | | | |||
Options cancelled | | | (41,353) | | | $0.39 | | | | | | | |||
Outstanding Balance, December 31, 2020 | | | 6,041,043 | | | $0.31 | | | 3,838,429 | | | 7.62 | | | $0.19 |
| | | | | | | | | | ||||||
Options granted | | | 1,173,500 | | | $ 0.75 | | | | | | | |||
Options exercised | | | (159,477) | | | $0.24 | | | | | | | |||
Options forfeited | | | (237,528) | | | $0.66 | | | | | | | |||
Options cancelled | | | (15,101) | | | $0.54 | | | | | | | |||
Outstanding Balance, December 31, 2021 | | | 6,802,437 | | | $0.38 | | | 4,628,311 | | | 6.79 | | | $ 0.24 |
| | Options Outstanding | | | Options Vested and Exercisable | |||||||
| | (In thousands except share data) | | | (In thousands except share data) | |||||||
Fixed Options | | | Number of Options | | | Aggregate Intrinsic Value | | | Number of Options | | | Aggregate Intrinsic Value |
January 1, 2020 | | | 4,597,500 | | | $1,162 | | | 2,970,724 | | | $812 |
December 31, 2020 | | | 6,014,043 | | | $2,649 | | | 3,838,429 | | | $2,146 |
December 31, 2021 | | | 6,802,437 | | | $24,761 | | | 4,628,311 | | | $18,652 |
| | 2021 | | | 2020 | |
Risk-free rate | | | 1.07% | | | 0.79% |
Expected life (years) | | | 6.06 | �� | | 5.76 |
Expected volatility | | | 52.72% | | | 52.53% |
Expected dividend yield | | | —% | | | —% |
December 31 | | | Amount |
2022 | | | $471 |
2023 | | | 363 |
2024 | | | 264 |
| | $1,098 |
| | December 31 | ||||
| | 2021 | | | 2020 | |
Loss per share: | | | | | ||
Numerator: | | | | | ||
Net loss | | | $(5,750) | | | $(1,598) |
| | | | |||
Denominator | | | | | ||
Weighted-average common shares outstanding - basic and diluted | | | 13,385,267 | | | 14,047,342 |
| | | | |||
Basic and diluted loss per common share | | | $(0.43) | | | $(0.11) |
| | December 31 | ||||
| | 2021 | | | 2020 | |
Shares subject to Series A Preferred Stock Conversion | | | 5,088,944 | | | 5,088,944 |
Shares subject to Series B Preferred Stock Conversion | | | 4,584,202 | | | 4,584,202 |
Shares subject to Seed Preferred Stock Conversion | | | 6,911,715 | | | 6,911,715 |
Shares vested and subject to exercise of stock options | | | 4,628,311 | | | 3,838,429 |
Shares unvested and subject to exercise of stock options | | | 2,174,126 | | | 2,202,614 |
| | December 31 | ||||
| | 2021 | | | 2020 | |
Provision (benefit) for income taxes | | | | | ||
Current | | |||||
Federal | | | $— | | | $— |
State | | | 1 | | | — |
International | | | 1 | | | — |
| | $2 | | | $— |
| | December 31 | ||||
| | 2021 | | | 2020 | |
Loss from operations | | | | | ||
U.S. | | | (4,981) | | | (1,598) |
Foreign | | | (769) | | | — |
| | $(5,750) | | | $(1,598) |
| | December 31, 2021 | | | December 31, 2020 | |||||||
| | Amount | | | Rate | | | Amount | | | Rate | |
U.S. federal income tax provision (benefit) at statutory rate | | | $(1,207) | | | 21% | | | $(336) | | | 21% |
Increase (decrease) in taxes resulting from: | | | | | | | | | ||||
State income tax expense | | | 1 | | | —% | | | — | | | —% |
Foreign income and losses taxed at different rates | | | (51) | | | 1% | | | — | | | —% |
Change in valuation allowance | | | 1,620 | | | (28)% | | | 401 | | | (25)% |
Paycheck protection program forgiveness | | | (165) | | | 3% | | | — | | | —% |
Non-deductible or non-taxable items | | | (194) | | | 3% | | | (65) | | | 4% |
Effect of income tax rate changes on deferred items | | | (2) | | | —% | | | — | | | —% |
Provision (benefit) for income taxes | | | $2 | | | —% | | | $— | | | —% |
| | December 31 | ||||
| | 2021 | | | 2020 | |
Deferred tax assets: | | | | | ||
Accrued expenses and other liabilities | | | 76 | | | 42 |
Property and equipment, net | | | — | | | 112 |
Net operating loss | | | 3,402 | | | 1,464 |
Stock-based compensation | | | 132 | | | 147 |
Total gross deferred tax assets | | | 3,610 | | | 1,765 |
Less: valuation allowance | | | (3,385) | | | (1,765) |
Total deferred tax assets | | | 225 | | | — |
Deferred tax liabilities: | | | | | ||
Prepaid expenses and other assets | | | (191) | | | — |
Property and equipment, net | | | (34) | | | — |
Total deferred tax liabilities | | | (225) | | | — |
Net deferred income tax asset (liability) | | | — | | | — |
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Annex A – Form of Surviving Pubco Certificate of Incorporation |
Annex B – Form of Surviving Pubco Bylaws |
Annex C – Voting and Support Agreement |
Annex D – Sponsor Letter Agreement |
Annex E – Form of Amended and Restated Registration Rights Agreement |
Annex F – Form of Certificate of Merger |
Annex G – Incentive Equity Plan |
(i) | | | If to any Tuatara Party, to: | | | | | ||||||||
| | | | | | | | | |||||||
| | Tuatara Capital Acquisition Corporation | | | | ||||||||||
| | 655 Third Avenue, 8th Floor | | | | ||||||||||
| | New York, NY 10017 | | | | ||||||||||
| | Attention: | | | Albert Foreman | | | | |||||||
| | | | Sergey Sherman | | | | ||||||||
| | Email: | | | foreman@tuataracap.com | | | | |||||||
| | | | Sergey.sherman@tuataracap.com | | ||||||||||
| | | | | | | | |
with copies (which shall not constitute notice) to: | | |||||||||||
| | | | | | | ||||||
| | Davis Polk & Wardwell LLP | | | ||||||||
| | 450 Lexington Avenue | | | ||||||||
| | New York, NY 10017 | | | ||||||||
| | Attention: | | | Derek Dostal | | ||||||
| | | | Leonard Kreynin | | |||||||
| | Email: | | | derek.dostal@davispolk.com | | ||||||
| | | | leonard.kreynin@davispolk.com | | |||||||
| | | | | | | ||||||
(ii) | | | If to the Company, to: | | ||||||||
| | | | | | | ||||||
| | SpringBig, Inc. | | | ||||||||
| | 621 NW 53rd Street, Ste. 250, | | | ||||||||
| | Boca Raton, Florida 33487 | | | ||||||||
| | Attention: | | | Paul Sykes | | ||||||
| | Email: | | | psykes@springbig.com | | ||||||
| | | | | ||||||||
with copies (which shall not constitute notice) to: | | | ||||||||||
| | | | | | | ||||||
| | Benesch Friedlander Coplan & Aronoff LLP | | | ||||||||
| | 71 South Wacker Drive, Suite 1600 | | | ||||||||
| | Chicago, IL 60606 | | | ||||||||
| | Attention: | | | William E. Doran | | ||||||
| | | | Sarah Hesse | | |||||||
| | Email: | | | wdoran@beneschlaw.com | | ||||||
| | | | shesse@beneschlaw.com | | |||||||
| | | | | | |
| | TUATARA CAPITAL ACQUISITION CORPORATION | | ||||||
| | | | | |||||
| | By: | | | /s/ Albert Foreman | | |||
| | | | Name: Albert Foreman | |||||
| | | | Title: Chief Executive Officer |
| | HIGHJUMP MERGER SUB, INC. | | ||||||
| | | | | |||||
| | By: | | | /s/ Albert Foreman | | |||
| | | | Name: Albert Foreman | |||||
| | | | Title: Chief Executive Officer |
| | SPRINGBIG, INC. | | ||||||
| | | | | |||||
| | By: | | | /s/ Jeff Harris | | |||
| | | | Name: Jeff Harris | |||||
| | | | Title: CEO |
| | [SPRINGBIG], INC. | |||||||
| | | | | | ||||
| | By: | | | |||||
| | | | Name: | | | |||
| | | | Title: | | | Chief Executive Officer |
1 | The name of the Company is Tuatara Capital Acquisition Corporation |
2 | The Registered Office of the Company shall be at the offices of Maples Corporate Services Limited, PO Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands, or at such other place within the Cayman Islands as the Directors may decide. |
3 | The objects for which the Company is established are unrestricted and the Company shall have full power and authority to carry out any object not prohibited by the laws of the Cayman Islands. |
4 | The liability of each Member is limited to the amount unpaid on such Member's shares. |
5 | The share capital of the Company is US$22,100 divided into 200,000,000 Class A ordinary shares of a par value of US$0.0001 each, 20,000,000 Class B ordinary shares of a par value of US$0.0001 each and 1,000,000 preference shares of a par value of US$0.0001 each. |
6 | The Company has power to register by way of continuation as a body corporate limited by shares under the laws of any jurisdiction outside the Cayman Islands and to be deregistered in the Cayman Islands. |
7 | Capitalised terms that are not defined in this Amended and Restated Memorandum of Association bear the respective meanings given to them in the Amended and Restated Articles of Association of the Company. |
1 | Interpretation |
1.1 | In the Articles Table A in the First Schedule to the Statute does not apply and, unless there is something in the subject or context inconsistent therewith: |
“Affiliate” | | | in respect of a person, means any other person that, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such person, and (a) in the case of a natural person, shall include, without limitation, such person’s spouse, parents, children, siblings, mother-in-law and father-in-law and brothers and sisters-in-law, whether by blood, marriage or adoption or anyone residing in such person’s home, a trust for the benefit of any of the foregoing, a company, partnership or any natural person or entity wholly or jointly owned by any of the foregoing and (b) in the case of an entity, shall include a partnership, a corporation or any natural person or entity which directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, such entity. |
“Applicable Law” | | | means, with respect to any person, all provisions of laws, statutes, ordinances, rules, regulations, permits, certificates, judgments, decisions, decrees or orders of any governmental authority applicable to such person. |
“Articles” | | | means these amended and restated articles of association of the Company. |
“Audit Committee” | | | means the audit committee of the board of directors of the Company established pursuant to the Articles, or any successor committee. |
“Auditor” | | | means the person for the time being performing the duties of auditor of the Company (if any). |
“Business Combination” | | | means a merger, share exchange, asset acquisition, share purchase, reorganisation or similar business combination involving the Company, with one or more businesses or entities (the “target business”), which Business Combination: (a) as long as the securities of the Company are listed on the Nasdaq Capital Market, must occur with one or more target businesses that together have an aggregate fair market value of at least 80 per cent of the assets held in the Trust Account (excluding the deferred underwriting commissions and taxes payable on the income earned on the Trust Account) at the time of the signing of the definitive agreement to enter into such Business Combination; and (b) must not be solely effectuated with another blank cheque company or a similar company with nominal operations. |
“business day” | | | means any day other than a Saturday, a Sunday or a legal holiday or a day on which banking institutions or trust companies are authorised or obligated by law to close in New York City. |
“Clearing House” | | | means a clearing house recognised by the laws of the jurisdiction in which the Shares (or depositary receipts therefor) are listed or quoted on a stock exchange or interdealer quotation system in such jurisdiction. |
“Class A Share” | | | means a Class A ordinary share of a par value of US$0.0001 in the share capital of the Company. |
“Class B Share” | | | means a Class B ordinary share of a par value of US$0.0001 in the share capital of the Company. |
“Company” | | | means the above named company. |
“Company’s Website” | | | means the website of the Company and/or its web-address or domain name (if any). |
“Compensation Committee” | | | means the compensation committee of the board of directors of the Company established pursuant to the Articles, or any successor committee. |
“Designated Stock Exchange” | | | means any United States national securities exchange on which the securities of the Company are listed for trading, including the Nasdaq Capital Market. |
“Directors” | | | means the directors for the time being of the Company. |
“Dividend” | | | means any dividend (whether interim or final) resolved to be paid on Shares pursuant to the Articles. |
“Electronic Communication” | | | means a communication sent by electronic means, including electronic posting to the Company’s Website, transmission to any number, address or internet website (including the website of the Securities and Exchange Commission) or other electronic delivery methods as otherwise decided and approved by the Directors. |
“Electronic Record” | | | has the same meaning as in the Electronic Transactions Act. |
“Electronic Transactions Act” | | | means the Electronic Transactions Act (As Revised) of the Cayman Islands. |
“Equity-linked Securities” | | | means any debt or equity securities that are convertible, exercisable or exchangeable for Class A Shares issued in a financing transaction in connection with a Business Combination, including but not limited to a private placement of equity or debt. |
“Exchange Act” | | | means the United States Securities Exchange Act of 1934, as amended, or any similar U.S. federal statute and the rules and regulations of the Securities and Exchange Commission thereunder, all as the same shall be in effect at the time. |
“Founders” | | | means all Members immediately prior to the consummation of the IPO. |
“Independent Director” | | | has the same meaning as in the rules and regulations of the Designated Stock Exchange or in Rule 10A-3 under the Exchange Act, as the case may be. |
“IPO” | | | means the Company's initial public offering of securities. |
“Member” | | | has the same meaning as in the Statute. |
“Memorandum” | | | means the amended and restated memorandum of association of the Company. |
“Nominating Committee” | | | means the nominating committee of the board of directors of the Company established pursuant to the Articles, or any successor committee. |
“Officer” | | | means a person appointed to hold an office in the Company. |
“Ordinary Resolution” | | | means a resolution passed by a simple majority of the Members as, being entitled to do so, vote in person or, where proxies are allowed, by proxy at a general meeting, and includes a unanimous written resolution. In computing the majority when a poll is demanded regard shall be had to the number of votes to which each Member is entitled by the Articles. |
“Over-Allotment Option” | | | means the option of the Underwriters to purchase up to an additional 15 per cent of the firm units (as described in the Articles) issued in the IPO at a price equal to US$10 per unit, less underwriting discounts and commissions. |
“Preference Share” | | | means a preference share of a par value of US$0.0001 in the share capital of the Company. |
“Public Share” | | | means a Class A Share issued as part of the units (as described in the Articles) issued in the IPO. |
“Redemption Notice” | | | means a notice in a form approved by the Company by which a holder of Public Shares is entitled to require the Company to redeem its Public Shares, subject to any conditions contained therein. |
“Register of Members” | | | means the register of Members maintained in accordance with the Statute and includes (except where otherwise stated) any branch or duplicate register of Members. |
“Registered Office” | | | means the registered office for the time being of the Company. |
“Representative” | | | means a representative of the Underwriters. |
“Seal” | | | means the common seal of the Company and includes every duplicate seal. |
“Securities and Exchange Commission” | | | means the United States Securities and Exchange Commission. |
“Share” | | | means a Class A Share, a Class B Share or a Preference Share and includes a fraction of a share in the Company. |
“Special Resolution” | | | subject to Article 29.4, has the same meaning as in the Statute, and includes a unanimous written resolution. |
“Sponsor” | | | means TCAC Sponsor, LLC, a Delaware limited liability company, and its successors or assigns. |
“Statute” | | | means the Companies Act (As Revised) of the Cayman Islands. |
“Treasury Share” | | | means a Share held in the name of the Company as a treasury share in accordance with the Statute. |
“Trust Account” | | | means the trust account established by the Company upon the consummation of the IPO and into which a certain amount of the net proceeds of the IPO, together with a certain amount of the proceeds of a private placement of warrants simultaneously with the closing date of the IPO, will be deposited. |
“Underwriter” | | | means an underwriter of the IPO from time to time and any successor underwriter. |
1.2 | In the Articles: |
(a) | words importing the singular number include the plural number and vice versa; |
(b) | words importing the masculine gender include the feminine gender; |
(c) | words importing persons include corporations as well as any other legal or natural person; |
(d) | “written” and “in writing” include all modes of representing or reproducing words in visible form, including in the form of an Electronic Record; |
(e) | “shall” shall be construed as imperative and “may” shall be construed as permissive; |
(f) | references to provisions of any law or regulation shall be construed as references to those provisions as amended, modified, re-enacted or replaced; |
(g) | any phrase introduced by the terms “including”, “include”, “in particular” or any similar expression shall be construed as illustrative and shall not limit the sense of the words preceding those terms; |
(h) | the term “and/or” is used herein to mean both “and” as well as “or.” The use of “and/or” in certain contexts in no respects qualifies or modifies the use of the terms “and” or “or” in others. The term “or” shall not be interpreted to be exclusive and the term “and” shall not be interpreted to require the conjunctive (in each case, unless the context otherwise requires); |
(i) | headings are inserted for reference only and shall be ignored in construing the Articles; |
(j) | any requirements as to delivery under the Articles include delivery in the form of an Electronic Record; |
(k) | any requirements as to execution or signature under the Articles including the execution of the Articles themselves can be satisfied in the form of an electronic signature as defined in the Electronic Transactions Act; |
(l) | sections 8 and 19(3) of the Electronic Transactions Act shall not apply; |
(m) | the term “clear days” in relation to the period of a notice means that period excluding the day when the notice is received or deemed to be received and the day for which it is given or on which it is to take effect; and |
(n) | the term “holder” in relation to a Share means a person whose name is entered in the Register of Members as the holder of such Share. |
2 | Commencement of Business |
2.1 | The business of the Company may be commenced as soon after incorporation of the Company as the Directors shall see fit. |
2.2 | The Directors may pay, out of the capital or any other monies of the Company, all expenses incurred in or about the formation and establishment of the Company, including the expenses of registration. |
3 | Issue of Shares and other Securities |
3.1 | Subject to the provisions, if any, in the Memorandum (and to any direction that may be given by the Company in general meeting) and, where applicable, the rules and regulations of the Designated Stock Exchange, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under Applicable Law, and without prejudice to any rights attached to any existing Shares, the Directors may allot, issue, grant options over or otherwise dispose of Shares (including fractions of a Share) with or without preferred, deferred or other rights or restrictions, whether in regard to Dividends or other distributions, voting, return of capital or otherwise and to such persons, at such times and on such other terms as they think proper, and may also (subject to the Statute and the Articles) vary such rights, save that the Directors shall not allot, issue, grant options over or otherwise dispose of Shares (including fractions of a Share) to the extent that it may affect the ability of the Company to carry out a Class B Ordinary Share Conversion set out in the Articles. |
3.2 | The Company may issue rights, options, warrants or convertible securities or securities of similar nature conferring the right upon the holders thereof to subscribe for, purchase or receive any class of Shares or other securities in the Company on such terms as the Directors may from time to time determine. |
3.3 | The Company may issue units of securities in the Company, which may be comprised of whole or fractional Shares, rights, options, warrants or convertible securities or securities of similar nature conferring the right upon the holders thereof to subscribe for, purchase or receive any class of Shares or other securities in the Company, upon such terms as the Directors may from time to time determine. The securities comprising any such units which are issued pursuant to the IPO can only be traded separately from one another on the 52nd day following the date of the prospectus relating to the IPO unless the Representative(s) determines that an earlier date is acceptable, subject to the Company having filed a current report on Form 8-K with the Securities and Exchange Commission and a press release announcing when such separate trading will begin. Prior to such date, the units can be traded, but the securities comprising such units cannot be traded separately from one another. |
3.4 | The Company shall not issue Shares to bearer. |
4 | Register of Members |
4.1 | The Company shall maintain or cause to be maintained the Register of Members in accordance with the Statute. |
4.2 | The Directors may determine that the Company shall maintain one or more branch registers of Members in accordance with the Statute. The Directors may also determine which register of Members shall constitute the principal register and which shall constitute the branch register or registers, and to vary such determination from time to time. |
5 | Closing Register of Members or Fixing Record Date |
5.1 | For the purpose of determining Members entitled to notice of, or to vote at any meeting of Members or any adjournment thereof, or Members entitled to receive payment of any Dividend or other distribution, or in order to make a determination of Members for any other purpose, the Directors may, after notice has been given by advertisement in an appointed newspaper or any other newspaper or by any other means in accordance with the rules and regulations of the Designated Stock Exchange, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under Applicable Law, provide that the Register of Members shall be closed for transfers for a stated period which shall not in any case exceed forty days. |
5.2 | In lieu of, or apart from, closing the Register of Members, the Directors may fix in advance or arrears a date as the record date for any such determination of Members entitled to notice of, or to vote at any meeting of the Members or any adjournment thereof, or for the purpose of determining the Members entitled to receive payment of any Dividend or other distribution, or in order to make a determination of Members for any other purpose. |
5.3 | If the Register of Members is not so closed and no record date is fixed for the determination of Members entitled to notice of, or to vote at, a meeting of Members or Members entitled to receive payment of a Dividend or other distribution, the date on which notice of the meeting is sent or the date on which the resolution of the Directors resolving to pay such Dividend or other distribution is passed, as the case may be, shall be the record date for such determination of Members. When a determination of Members entitled to vote at any meeting of Members has been made as provided in this Article, such determination shall apply to any adjournment thereof. |
6 | Certificates for Shares |
6.1 | A Member shall only be entitled to a share certificate if the Directors resolve that share certificates shall be issued. Share certificates representing Shares, if any, shall be in such form as the Directors may determine. Share certificates shall be signed by one or more Directors or other person authorised by the Directors. The Directors may authorise certificates to be issued with the authorised signature(s) affixed by mechanical process. All certificates for Shares shall be consecutively numbered or otherwise identified and shall specify the Shares to which they relate. All certificates surrendered to the Company for transfer shall be cancelled and, subject to the Articles, no new certificate shall be issued until the former certificate representing a like number of relevant Shares shall have been surrendered and cancelled. |
6.2 | The Company shall not be bound to issue more than one certificate for Shares held jointly by more than one person and delivery of a certificate to one joint holder shall be a sufficient delivery to all of them. |
6.3 | If a share certificate is defaced, worn out, lost or destroyed, it may be renewed on such terms (if any) as to evidence and indemnity and on the payment of such expenses reasonably incurred by the Company in investigating evidence, as the Directors may prescribe, and (in the case of defacement or wearing out) upon delivery of the old certificate. |
6.4 | Every share certificate sent in accordance with the Articles will be sent at the risk of the Member or other person entitled to the certificate. The Company will not be responsible for any share certificate lost or delayed in the course of delivery. |
6.5 | Share certificates shall be issued within the relevant time limit as prescribed by the Statute, if applicable, or as the rules and regulations of the Designated Stock Exchange, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under Applicable Law may from time to time determine, whichever is shorter, after the allotment or, except in the case of a Share transfer which the Company is for the time being entitled to refuse to register and does not register, after lodgement of a Share transfer with the Company. |
7 | Transfer of Shares |
7.1 | Subject to the terms of the Articles, any Member may transfer all or any of his Shares by an instrument of transfer provided that such transfer complies with the rules and regulations of the Designated Stock Exchange, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under Applicable Law. If the Shares in question were issued in conjunction with rights, options, warrants or units issued pursuant to the Articles on terms that one cannot be transferred without the other, the Directors shall refuse to register the transfer of any such Share without evidence satisfactory to them of the like transfer of such right, option, warrant or unit. |
7.2 | The instrument of transfer of any Share shall be in writing in the usual or common form or in a form prescribed by the rules and regulations of the Designated Stock Exchange, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under Applicable Law or in any other form approved by the Directors and shall be executed by or on behalf of the transferor (and if the Directors so require, signed by or on behalf of the transferee) and may be under hand or, if the transferor or transferee is a Clearing House or its nominee(s), by hand or by machine imprinted signature or by such other manner of execution as the Directors may approve from time to time. The transferor shall be deemed to remain the holder of a Share until the name of the transferee is entered in the Register of Members. |
8 | Redemption, Repurchase and Surrender of Shares |
8.1 | Subject to the provisions of the Statute, and, where applicable, the rules and regulations of the Designated Stock Exchange, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under Applicable Law, the Company may issue Shares that are to be redeemed or are liable to be redeemed at the option of the Member or the Company. The redemption of such Shares, except Public Shares, shall be effected in such manner and upon such other terms as the Company may, by Special Resolution, determine before the issue of such Shares. With respect to redeeming or repurchasing the Shares: |
(a) | Members who hold Public Shares are entitled to request the redemption of such Shares in the circumstances described in the Business Combination Article hereof; |
(b) | Class B Shares held by the Founders shall be surrendered by the Founders for no consideration on a pro-rata basis to the extent that the Over-Allotment Option is not exercised in full so that the Founders will own 20 per cent of the Company's issued Shares after the IPO (exclusive of any securities purchased in a private placement simultaneously with the IPO); and |
(c) | Public Shares shall be repurchased by way of tender offer in the circumstances set out in the Business Combination Article hereof. |
8.2 | Subject to the provisions of the Statute, and, where applicable, the rules and regulations of the Designated Stock Exchange, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under Applicable Law, the Company may purchase its own Shares (including any redeemable Shares) in such manner and on such other terms as the Directors may agree with the relevant Member. For the avoidance of doubt, redemptions, repurchases and surrenders of Shares in the circumstances described in the Article above shall not require further approval of the Members. |
8.3 | The Company may make a payment in respect of the redemption or purchase of its own Shares in any manner permitted by the Statute, including out of capital. |
8.4 | The Directors may accept the surrender for no consideration of any fully paid Share. |
9 | Treasury Shares |
9.1 | The Directors may, prior to the purchase, redemption or surrender of any Share, determine that such Share shall be held as a Treasury Share. |
9.2 | The Directors may determine to cancel a Treasury Share or transfer a Treasury Share on such terms as they think proper (including, without limitation, for nil consideration). |
10 | Variation of Rights of Shares |
10.1 | Subject to Article 3.1, if at any time the share capital of the Company is divided into different classes of Shares, all or any of the rights attached to any class (unless otherwise provided by the terms of issue of the Shares of that class) may, whether or not the Company is being wound up, be varied without the consent of the holders of the issued Shares of that class where such variation is considered by the Directors not to have a material adverse effect upon such rights; otherwise, any such variation shall be made only with the consent in writing of the holders of not less than two thirds of the issued Shares of that class (other than with respect to a waiver of the provisions of the Class B Ordinary Share Conversion Article hereof, which as stated therein shall only require the consent in writing of the holders of a majority of the issued Shares of that class), or with the approval of a resolution passed by a majority of not less than two thirds of the votes cast at a separate meeting of the holders of the Shares of that class. For the avoidance of doubt, the Directors reserve the right, notwithstanding that any such variation may not have a material adverse effect, to obtain consent from the holders of Shares of the relevant class. To any such meeting all the provisions of the Articles relating to general meetings shall apply mutatis mutandis, except that the necessary quorum shall be one person holding or representing by proxy at least one third of the issued Shares of the class and that any holder of Shares of the class present in person or by proxy may demand a poll. |
10.2 | For the purposes of a separate class meeting, the Directors may treat two or more or all the classes of Shares as forming one class of Shares if the Directors consider that such class of Shares would be affected in the same way by the proposals under consideration, but in any other case shall treat them as separate classes of Shares. |
10.3 | The rights conferred upon the holders of the Shares of any class issued with preferred or other rights shall not, unless otherwise expressly provided by the terms of issue of the Shares of that class, be deemed to be varied by the creation or issue of further Shares ranking pari passu therewith or Shares issued with preferred or other rights. |
11 | Commission on Sale of Shares |
12 | Non Recognition of Trusts |
13 | Lien on Shares |
13.1 | The Company shall have a first and paramount lien on all Shares (whether fully paid-up or not) registered in the name of a Member (whether solely or jointly with others) for all debts, liabilities or engagements to or with the Company (whether presently payable or not) by such Member or his estate, either alone or jointly with any other person, whether a Member or not, but the Directors may at any time declare any Share to be wholly or in part exempt from the provisions of this Article. The registration of a transfer of any such Share shall operate as a waiver of the Company's lien thereon. The Company's lien on a Share shall also extend to any amount payable in respect of that Share. |
13.2 | The Company may sell, in such manner as the Directors think fit, any Shares on which the Company has a lien, if a sum in respect of which the lien exists is presently payable, and is not paid within fourteen clear days after notice has been received or deemed to have been received by the holder of the Shares, or to the person entitled to it in consequence of the death or bankruptcy of the holder, demanding payment and stating that if the notice is not complied with the Shares may be sold. |
13.3 | To give effect to any such sale the Directors may authorise any person to execute an instrument of transfer of the Shares sold to, or in accordance with the directions of, the purchaser. The purchaser or his nominee shall be registered as the holder of the Shares comprised in any such transfer, and he shall not be bound to see to the application of the purchase money, nor shall his title to the Shares be affected by any irregularity or invalidity in the sale or the exercise of the Company's power of sale under the Articles. |
13.4 | The net proceeds of such sale after payment of costs, shall be applied in payment of such part of the amount in respect of which the lien exists as is presently payable and any balance shall (subject to a like lien for sums not presently payable as existed upon the Shares before the sale) be paid to the person entitled to the Shares at the date of the sale. |
14 | Call on Shares |
14.1 | Subject to the terms of the allotment and issue of any Shares, the Directors may make calls upon the Members in respect of any monies unpaid on their Shares (whether in respect of par value or premium), and each Member shall (subject to receiving at least fourteen clear days' notice specifying the time or times of payment) pay to the Company at the time or times so specified the amount called on the Shares. A call may be revoked or postponed, in whole or in part, as the Directors may determine. A call may be required to be paid by instalments. A person upon whom a call is made shall remain liable for calls made upon him notwithstanding the subsequent transfer of the Shares in respect of which the call was made. |
14.2 | A call shall be deemed to have been made at the time when the resolution of the Directors authorising such call was passed. |
14.3 | The joint holders of a Share shall be jointly and severally liable to pay all calls in respect thereof. |
14.4 | If a call remains unpaid after it has become due and payable, the person from whom it is due shall pay interest on the amount unpaid from the day it became due and payable until it is paid at such rate as the Directors may determine (and in addition all expenses that have been incurred by the Company by reason of such non-payment), but the Directors may waive payment of the interest or expenses wholly or in part. |
14.5 | An amount payable in respect of a Share on issue or allotment or at any fixed date, whether on account of the par value of the Share or premium or otherwise, shall be deemed to be a call and if it is not paid all the provisions of the Articles shall apply as if that amount had become due and payable by virtue of a call. |
14.6 | The Directors may issue Shares with different terms as to the amount and times of payment of calls, or the interest to be paid. |
14.7 | The Directors may, if they think fit, receive an amount from any Member willing to advance all or any part of the monies uncalled and unpaid upon any Shares held by him, and may (until the amount would otherwise become payable) pay interest at such rate as may be agreed upon between the Directors and the Member paying such amount in advance. |
14.8 | No such amount paid in advance of calls shall entitle the Member paying such amount to any portion of a Dividend or other distribution payable in respect of any period prior to the date upon which such amount would, but for such payment, become payable. |
15 | Forfeiture of Shares |
15.1 | If a call or instalment of a call remains unpaid after it has become due and payable the Directors may give to the person from whom it is due not less than fourteen clear days' notice requiring payment of the amount unpaid together with any interest which may have accrued and any expenses incurred by the Company by reason of such non-payment. The notice shall specify where payment is to be made and shall state that if the notice is not complied with the Shares in respect of which the call was made will be liable to be forfeited. |
15.2 | If the notice is not complied with, any Share in respect of which it was given may, before the payment required by the notice has been made, be forfeited by a resolution of the Directors. Such forfeiture shall include all Dividends, other distributions or other monies payable in respect of the forfeited Share and not paid before the forfeiture. |
15.3 | A forfeited Share may be sold, re-allotted or otherwise disposed of on such terms and in such manner as the Directors think fit and at any time before a sale, re-allotment or disposition the forfeiture may be cancelled on such terms as the Directors think fit. Where for the purposes of its disposal a forfeited Share is to be transferred to any person the Directors may authorise some person to execute an instrument of transfer of the Share in favour of that person. |
15.4 | A person any of whose Shares have been forfeited shall cease to be a Member in respect of them and shall surrender to the Company for cancellation the certificate for the Shares forfeited and shall remain liable to pay to the Company all monies which at the date of forfeiture were payable by him to the Company in respect of those Shares together with interest at such rate as the Directors may determine, but his liability shall cease if and when the Company shall have received payment in full of all monies due and payable by him in respect of those Shares. |
15.5 | A certificate in writing under the hand of one Director or Officer that a Share has been forfeited on a specified date shall be conclusive evidence of the facts stated in it as against all persons claiming to be entitled to the Share. The certificate shall (subject to the execution of an instrument of transfer) constitute a good title to the Share and the person to whom the Share is sold or otherwise disposed of shall not be bound to see to the application of the purchase money, if any, nor shall his title to the Share be affected by any irregularity or invalidity in the proceedings in reference to the forfeiture, sale or disposal of the Share. |
15.6 | The provisions of the Articles as to forfeiture shall apply in the case of non payment of any sum which, by the terms of issue of a Share, becomes payable at a fixed time, whether on account of the par value of the Share or by way of premium as if it had been payable by virtue of a call duly made and notified. |
16 | Transmission of Shares |
16.1 | If a Member dies, the survivor or survivors (where he was a joint holder), or his legal personal representatives (where he was a sole holder), shall be the only persons recognised by the Company as having any title to his Shares. The estate of a deceased Member is not thereby released from any liability in respect of any Share, for which he was a joint or sole holder. |
16.2 | Any person becoming entitled to a Share in consequence of the death or bankruptcy or liquidation or dissolution of a Member (or in any other way than by transfer) may, upon such evidence being produced as may be required by the Directors, elect, by a notice in writing sent by him to the Company, either to become the holder of such Share or to have some person nominated by him registered as the holder of such Share. If he elects to have another person registered as the holder of such Share he shall sign an instrument of transfer of that Share to that person. The Directors shall, in either case, have the same right to decline or suspend registration as they would have had in the case of a transfer of the Share by the relevant Member before his death or bankruptcy or liquidation or dissolution, as the case may be. |
16.3 | A person becoming entitled to a Share by reason of the death or bankruptcy or liquidation or dissolution of a Member (or in any other case than by transfer) shall be entitled to the same Dividends, other distributions and other advantages to which he would be entitled if he were the holder of such Share. However, he shall not, before becoming a Member in respect of a Share, be entitled in respect of it to exercise any right conferred by membership in relation to general meetings of the Company and the Directors may at any time give notice requiring any such person to elect either to be registered himself or to have some person nominated by him be registered as the holder of the Share (but the Directors shall, in either case, have the same right to decline or suspend registration as they would have had in the case of a transfer of the Share by the relevant Member before his death or bankruptcy or liquidation or dissolution or any other case than by transfer, as the case may be). If the notice is not complied with within ninety days of being received or deemed to be received (as determined pursuant to the Articles), the Directors may thereafter withhold payment of all Dividends, other distributions, bonuses or other monies payable in respect of the Share until the requirements of the notice have been complied with. |
17 | Class B Ordinary Share Conversion |
17.1 | The rights attaching to the Class A Shares and Class B Shares shall rank pari passu in all respects, and the Class A Shares and Class B Shares shall vote together as a single class on all matters (subject to the Variation of Rights of Shares Article and the Appointment and Removal of Directors Article hereof) with the exception that the holder of a Class B Share shall have the conversion rights referred to in this Article. |
17.2 | Class B Shares shall automatically convert into Class A Shares on a one-for-one basis (the “Initial Conversion Ratio”) automatically on the first business day following the consummation of a Business Combination. |
17.3 | Notwithstanding the Initial Conversion Ratio, in the case that additional Class A Shares or any other Equity-linked Securities, are issued, or deemed issued, by the Company in excess of the amounts offered in the IPO and related to the consummation of a Business Combination, all Class B Shares in issue shall automatically convert into Class A Shares at the time of the consummation of a Business Combination at a ratio for which the Class B Shares shall convert into Class A Shares will be adjusted (unless the holders of a majority of the Class B Shares in issue agree to waive such anti-dilution adjustment with respect to any such issuance or deemed issuance) so that the number of Class A Shares issuable upon conversion of all Class B Shares will equal, on an as-converted basis, in the aggregate, 20 per cent of the sum of all Class A Shares and Class B Shares in issue upon completion of the IPO plus all Class A Shares and Equity-linked Securities issued or deemed issued in connection with a Business Combination, excluding any Shares or Equity-linked Securities issued, or to be issued, to any seller in a Business Combination and any private placement warrants issued to the Sponsor, or its Affiliates, a Director or an Officer upon conversion of working capital loans made to the Company. |
17.4 | Notwithstanding anything to the contrary contained herein, the foregoing adjustment to the Initial Conversion Ratio may be waived as to any particular issuance or deemed issuance of additional Class A Shares or Equity-linked Securities by the written consent or agreement of holders of a majority of the Class B Shares then in issue consenting or agreeing separately as a separate class in the manner provided in the Variation of Rights of Shares Article hereof. |
17.5 | The foregoing conversion ratio shall also be adjusted to account for any subdivision (by share subdivision, exchange, capitalisation, rights issue, reclassification, recapitalisation or otherwise) or combination (by share consolidation, exchange, reclassification, recapitalisation or otherwise) or similar reclassification or recapitalisation of the Class A Shares in issue into a greater or lesser number of shares occurring after the original filing of the Articles without a proportionate and corresponding subdivision, combination or similar reclassification or recapitalisation of the Class B Shares in issue. |
17.6 | Each Class B Share shall convert into its pro rata number of Class A Shares pursuant to this Article. The pro rata share for each holder of Class B Shares will be determined as follows: each Class B Share shall convert into such number of Class A Shares as is equal to the product of 1 multiplied by a fraction, the numerator of which shall be the total number of Class A Shares into which all of the Class B Shares in issue shall be converted pursuant to this Article and the denominator of which shall be the total number of Class B Shares in issue at the time of conversion. |
17.7 | References in this Article to “converted”, “conversion” or “exchange” shall mean the compulsory redemption without notice of Class B Shares of any Member and, on behalf of such Members, automatic application of such redemption proceeds in paying for such new Class A Shares into which the Class B Shares have been converted or exchanged at a price per Class B Share necessary to give effect to a conversion or exchange calculated on the basis that the Class A Shares to be issued as part of the conversion or exchange will be issued at par. The Class A Shares to be issued on an exchange or conversion shall be registered in the name of such Member or in such name as the Member may direct. |
17.8 | Notwithstanding anything to the contrary in this Article, in no event may any Class B Share convert into Class A Shares at a ratio that is less than one-for-one. |
18 | Amendments of Memorandum and Articles of Association and Alteration of Capital |
18.1 | The Company may by Ordinary Resolution: |
(a) | increase its share capital by such sum as the Ordinary Resolution shall prescribe and with such rights, priorities and privileges annexed thereto, as the Company in general meeting may determine; |
(b) | consolidate and divide all or any of its share capital into Shares of larger amount than its existing Shares; |
(c) | convert all or any of its paid-up Shares into stock, and reconvert that stock into paid-up Shares of any denomination; |
(d) | by subdivision of its existing Shares or any of them divide the whole or any part of its share capital into Shares of smaller amount than is fixed by the Memorandum or into Shares without par value; and |
(e) | cancel any Shares that at the date of the passing of the Ordinary Resolution have not been taken or agreed to be taken by any person and diminish the amount of its share capital by the amount of the Shares so cancelled. |
18.2 | All new Shares created in accordance with the provisions of the preceding Article shall be subject to the same provisions of the Articles with reference to the payment of calls, liens, transfer, transmission, forfeiture and otherwise as the Shares in the original share capital. |
18.3 | Subject to the provisions of the Statute, the provisions of the Articles as regards the matters to be dealt with by Ordinary Resolution and Article 29.4, the Company may by Special Resolution: |
(a) | change its name; |
(b) | alter or add to the Articles; |
(c) | alter or add to the Memorandum with respect to any objects, powers or other matters specified therein; and |
(d) | reduce its share capital or any capital redemption reserve fund. |
19 | Offices and Places of Business |
20 | General Meetings |
20.1 | All general meetings other than annual general meetings shall be called extraordinary general meetings. |
20.2 | The Company may, but shall not (unless required by the Statute) be obliged to, in each year hold a general meeting as its annual general meeting, and shall specify the meeting as such in the notices calling it. Any annual general meeting shall be held at such time and place as the Directors shall appoint. At these meetings the report of the Directors (if any) shall be presented. |
20.3 | The Directors, the chief executive officer or the chairman of the board of Directors may call general meetings, and, for the avoidance of doubt, Members shall not have the ability to call general meetings. |
20.4 | Members seeking to bring business before the annual general meeting or to nominate candidates for appointment as Directors at the annual general meeting must deliver notice to the principal executive offices of the Company not less than 120 calendar days before the date of the Company’s proxy statement released to Members in connection with the previous year’s annual general meeting or, if the Company did not hold an annual general meeting the previous year, or if the date of the current year's annual general meeting has been changed by more than 30 days from the date of the previous year’s annual general meeting, then the deadline shall be set by the board of Directors with such deadline being a reasonable time before the Company begins to print and send its related proxy materials. |
21 | Notice of General Meetings |
21.1 | At least five clear days' notice shall be given of any general meeting. Every notice shall specify the place, the day and the hour of the meeting and the general nature of the business to be conducted at the general meeting and shall be given in the manner hereinafter mentioned or in such other manner if any as may be |
(a) | in the case of an annual general meeting, by all of the Members entitled to attend and vote thereat; and |
(b) | in the case of an extraordinary general meeting, by a majority in number of the Members having a right to attend and vote at the meeting, together holding not less than ninety-five per cent in par value of the Shares giving that right. |
21.2 | The accidental omission to give notice of a general meeting to, or the non receipt of notice of a general meeting by, any person entitled to receive such notice shall not invalidate the proceedings of that general meeting. |
22 | Proceedings at General Meetings |
22.1 | No business shall be transacted at any general meeting unless a quorum is present. The holders of a majority of the Shares being individuals present in person or by proxy or if a corporation or other non-natural person by its duly authorised representative or proxy shall be a quorum. |
22.2 | A person may participate at a general meeting by conference telephone or other communications equipment by means of which all the persons participating in the meeting can communicate with each other. Participation by a person in a general meeting in this manner is treated as presence in person at that meeting. |
22.3 | A resolution (including a Special Resolution) in writing (in one or more counterparts) signed by or on behalf of all of the Members for the time being entitled to receive notice of and to attend and vote at general meetings (or, being corporations or other non-natural persons, signed by their duly authorised representatives) shall be as valid and effective as if the resolution had been passed at a general meeting of the Company duly convened and held. |
22.4 | If a quorum is not present within half an hour from the time appointed for the meeting to commence, the meeting shall stand adjourned to the same day in the next week at the same time and/or place or to such other day, time and/or place as the Directors may determine, and if at the adjourned meeting a quorum is not present within half an hour from the time appointed for the meeting to commence, the Members present shall be a quorum. |
22.5 | The Directors may, at any time prior to the time appointed for the meeting to commence, appoint any person to act as chairman of a general meeting of the Company or, if the Directors do not make any such appointment, the chairman, if any, of the board of Directors shall preside as chairman at such general meeting. If there is no such chairman, or if he shall not be present within fifteen minutes after the time appointed for the meeting to commence, or is unwilling to act, the Directors present shall elect one of their number to be chairman of the meeting. |
22.6 | If no Director is willing to act as chairman or if no Director is present within fifteen minutes after the time appointed for the meeting to commence, the Members present shall choose one of their number to be chairman of the meeting. |
22.7 | The chairman may, with the consent of a meeting at which a quorum is present (and shall if so directed by the meeting) adjourn the meeting from time to time and from place to place, but no business shall be transacted at any adjourned meeting other than the business left unfinished at the meeting from which the adjournment took place. |
22.8 | When a general meeting is adjourned for thirty days or more, notice of the adjourned meeting shall be given as in the case of an original meeting. Otherwise it shall not be necessary to give any such notice of an adjourned meeting. |
22.9 | If, prior to a Business Combination, a notice is issued in respect of a general meeting and the Directors, in their absolute discretion, consider that it is impractical or undesirable for any reason to hold that general meeting at the place, the day and the hour specified in the notice calling such general meeting, the Directors may postpone the general meeting to another place, day and/or hour provided that notice of the place, the |
22.10 | When a general meeting is postponed for thirty days or more, notice of the postponed meeting shall be given as in the case of an original meeting. Otherwise it shall not be necessary to give any such notice of a postponed meeting. All proxy forms submitted for the original general meeting shall remain valid for the postponed meeting. The Directors may postpone a general meeting which has already been postponed. |
22.11 | A resolution put to the vote of the meeting shall be decided on a poll. |
22.12 | A poll shall be taken as the chairman directs, and the result of the poll shall be deemed to be the resolution of the general meeting at which the poll was demanded. |
22.13 | A poll demanded on the election of a chairman or on a question of adjournment shall be taken forthwith. A poll demanded on any other question shall be taken at such date, time and place as the chairman of the general meeting directs, and any business other than that upon which a poll has been demanded or is contingent thereon may proceed pending the taking of the poll. |
22.14 | In the case of an equality of votes the chairman shall be entitled to a second or casting vote. |
23 | Votes of Members |
23.1 | Subject to any rights or restrictions attached to any Shares, including as set out at Article 29.4, every Member present in any such manner shall have one vote for every Share of which he is the holder. |
23.2 | In the case of joint holders the vote of the senior holder who tenders a vote, whether in person or by proxy (or, in the case of a corporation or other non-natural person, by its duly authorised representative or proxy), shall be accepted to the exclusion of the votes of the other joint holders, and seniority shall be determined by the order in which the names of the holders stand in the Register of Members. |
23.3 | A Member of unsound mind, or in respect of whom an order has been made by any court, having jurisdiction in lunacy, may vote by his committee, receiver, curator bonis, or other person on such Member's behalf appointed by that court, and any such committee, receiver, curator bonis or other person may vote by proxy. |
23.4 | No person shall be entitled to vote at any general meeting unless he is registered as a Member on the record date for such meeting nor unless all calls or other monies then payable by him in respect of Shares have been paid. |
23.5 | No objection shall be raised as to the qualification of any voter except at the general meeting or adjourned general meeting at which the vote objected to is given or tendered and every vote not disallowed at the meeting shall be valid. Any objection made in due time in accordance with this Article shall be referred to the chairman whose decision shall be final and conclusive. |
23.6 | Votes may be cast either personally or by proxy (or in the case of a corporation or other non-natural person by its duly authorised representative or proxy). A Member may appoint more than one proxy or the same proxy under one or more instruments to attend and vote at a meeting. Where a Member appoints more than one proxy the instrument of proxy shall specify the number of Shares in respect of which each proxy is entitled to exercise the related votes. |
23.7 | A Member holding more than one Share need not cast the votes in respect of his Shares in the same way on any resolution and therefore may vote a Share or some or all such Shares either for or against a resolution and/or abstain from voting a Share or some or all of the Shares and, subject to the terms of the instrument appointing him, a proxy appointed under one or more instruments may vote a Share or some or all of the Shares in respect of which he is appointed either for or against a resolution and/or abstain from voting a Share or some or all of the Shares in respect of which he is appointed. |
24 | Proxies |
24.1 | The instrument appointing a proxy shall be in writing and shall be executed under the hand of the appointor or of his attorney duly authorised in writing, or, if the appointor is a corporation or other non natural person, under the hand of its duly authorised representative. A proxy need not be a Member. |
24.2 | The Directors may, in the notice convening any meeting or adjourned meeting, or in an instrument of proxy sent out by the Company, specify the manner by which the instrument appointing a proxy shall be deposited and the place and the time (being not later than the time appointed for the commencement of the meeting or adjourned meeting to which the proxy relates) at which the instrument appointing a proxy shall be deposited. In the absence of any such direction from the Directors in the notice convening any meeting or adjourned meeting or in an instrument of proxy sent out by the Company, the instrument appointing a proxy shall be deposited physically at the Registered Office not less than 48 hours before the time appointed for the meeting or adjourned meeting to commence at which the person named in the instrument proposes to vote. |
24.3 | The chairman may in any event at his discretion declare that an instrument of proxy shall be deemed to have been duly deposited. An instrument of proxy that is not deposited in the manner permitted, or which has not been declared to have been duly deposited by the chairman, shall be invalid. |
24.4 | The instrument appointing a proxy may be in any usual or common form (or such other form as the Directors may approve) and may be expressed to be for a particular meeting or any adjournment thereof or generally until revoked. An instrument appointing a proxy shall be deemed to include the power to demand or join or concur in demanding a poll. |
24.5 | Votes given in accordance with the terms of an instrument of proxy shall be valid notwithstanding the previous death or insanity of the principal or revocation of the proxy or of the authority under which the proxy was executed, or the transfer of the Share in respect of which the proxy is given unless notice in writing of such death, insanity, revocation or transfer was received by the Company at the Registered Office before the commencement of the general meeting, or adjourned meeting at which it is sought to use the proxy. |
25 | Corporate Members |
25.1 | Any corporation or other non-natural person which is a Member may in accordance with its constitutional documents, or in the absence of such provision by resolution of its directors or other governing body, authorise such person as it thinks fit to act as its representative at any meeting of the Company or of any class of Members, and the person so authorised shall be entitled to exercise the same powers on behalf of the corporation which he represents as the corporation could exercise if it were an individual Member. |
25.2 | If a Clearing House (or its nominee(s)), being a corporation, is a Member, it may authorise such persons as it sees fit to act as its representative at any meeting of the Company or at any meeting of any class of Members provided that the authorisation shall specify the number and class of Shares in respect of which each such representative is so authorised. Each person so authorised under the provisions of this Article shall be deemed to have been duly authorised without further evidence of the facts and be entitled to exercise the same rights and powers on behalf of the Clearing House (or its nominee(s)) as if such person was the registered holder of such Shares held by the Clearing House (or its nominee(s)). |
26 | Shares that May Not be Voted |
27 | Directors |
27.1 | There shall be a board of Directors consisting of not less than one person provided however that the Company may by Ordinary Resolution increase or reduce the limits in the number of Directors. |
27.2 | The Directors shall be divided into two classes: Class I and Class II. The number of Directors in each class shall be as nearly equal as possible. Upon the adoption of the Articles, the existing Directors shall by resolution classify themselves as Class I or Class II Directors. The Class I Directors shall stand appointed for a term expiring at the Company’s first annual general meeting and the Class II Directors shall stand appointed for a term expiring at the Company’s second annual general meeting. Commencing at the Company’s first annual general meeting, and at each annual general meeting thereafter, Directors appointed to succeed those Directors whose terms expire shall be appointed for a term of office to expire at the second |
28 | Powers of Directors |
28.1 | Subject to the provisions of the Statute, the Memorandum and the Articles and to any directions given by Special Resolution, the business of the Company shall be managed by the Directors who may exercise all the powers of the Company. No alteration of the Memorandum or Articles and no such direction shall invalidate any prior act of the Directors which would have been valid if that alteration had not been made or that direction had not been given. A duly convened meeting of Directors at which a quorum is present may exercise all powers exercisable by the Directors. |
28.2 | All cheques, promissory notes, drafts, bills of exchange and other negotiable or transferable instruments and all receipts for monies paid to the Company shall be signed, drawn, accepted, endorsed or otherwise executed as the case may be in such manner as the Directors shall determine by resolution. |
28.3 | The Directors on behalf of the Company may pay a gratuity or pension or allowance on retirement to any Director who has held any other salaried office or place of profit with the Company or to his widow or dependants and may make contributions to any fund and pay premiums for the purchase or provision of any such gratuity, pension or allowance. |
28.4 | The Directors may exercise all the powers of the Company to borrow money and to mortgage or charge its undertaking, property and assets (present and future) and uncalled capital or any part thereof and to issue debentures, debenture stock, mortgages, bonds and other such securities whether outright or as security for any debt, liability or obligation of the Company or of any third party. |
29 | Appointment and Removal of Directors |
29.1 | Prior to the consummation of a Business Combination, the Company may by Ordinary Resolution of the holders of the Class B Shares appoint any person to be a Director or may by Ordinary Resolution of the holders of the Class B Shares remove any Director. For the avoidance of doubt, prior to the consummation of a Business Combination, holders of Class A Shares shall have no right to vote on the appointment or removal of any Director. |
29.2 | The Directors may appoint any person to be a Director, either to fill a vacancy or as an additional Director provided that the appointment does not cause the number of Directors to exceed any number fixed by or in accordance with the Articles as the maximum number of Directors. |
29.3 | After the consummation of a Business Combination, the Company may by Ordinary Resolution appoint any person to be a Director or may by Ordinary Resolution remove any Director. |
29.4 | Prior to the consummation of a Business Combination, Article 29.1 may only be amended by a Special Resolution passed by at least 90 per cent of such Members as, being entitled to do so, vote in person or, where proxies are allowed, by proxy at a general meeting of which notice specifying the intention to propose the resolution as a special resolution has been given, or by way of unanimous written resolution. |
30 | Vacation of Office of Director |
(a) | the Director gives notice in writing to the Company that he resigns the office of Director; or |
(b) | the Director absents himself (for the avoidance of doubt, without being represented by proxy) from three consecutive meetings of the board of Directors without special leave of absence from the Directors, and the Directors pass a resolution that he has by reason of such absence vacated office; or |
(c) | the Director dies, becomes bankrupt or makes any arrangement or composition with his creditors generally; or |
(d) | the Director is found to be or becomes of unsound mind; or |
(e) | all of the other Directors (being not less than two in number) determine that he should be removed as a Director, either by a resolution passed by all of the other Directors at a meeting of the Directors duly convened and held in accordance with the Articles or by a resolution in writing signed by all of the other Directors. |
31 | Proceedings of Directors |
31.1 | The quorum for the transaction of the business of the Directors may be fixed by the Directors, and unless so fixed shall be a majority of the Directors then in office. |
31.2 | Subject to the provisions of the Articles, the Directors may regulate their proceedings as they think fit. Questions arising at any meeting shall be decided by a majority of votes. In the case of an equality of votes, the chairman shall have a second or casting vote. |
31.3 | A person may participate in a meeting of the Directors or any committee of Directors by conference telephone or other communications equipment by means of which all the persons participating in the meeting can communicate with each other at the same time. Participation by a person in a meeting in this manner is treated as presence in person at that meeting. Unless otherwise determined by the Directors, the meeting shall be deemed to be held at the place where the chairman is located at the start of the meeting. |
31.4 | A resolution in writing (in one or more counterparts) signed by all the Directors or all the members of a committee of the Directors or, in the case of a resolution in writing relating to the removal of any Director or the vacation of office by any Director, all of the Directors other than the Director who is the subject of such resolution shall be as valid and effectual as if it had been passed at a meeting of the Directors, or committee of Directors as the case may be, duly convened and held. |
31.5 | A Director may, or other Officer on the direction of a Director shall, call a meeting of the Directors by at least two days' notice in writing to every Director which notice shall set forth the general nature of the business to be considered unless notice is waived by all the Directors either at, before or after the meeting is held. To any such notice of a meeting of the Directors all the provisions of the Articles relating to the giving of notices by the Company to the Members shall apply mutatis mutandis. |
31.6 | The continuing Directors (or a sole continuing Director, as the case may be) may act notwithstanding any vacancy in their body, but if and so long as their number is reduced below the number fixed by or pursuant to the Articles as the necessary quorum of Directors the continuing Directors or Director may act for the purpose of increasing the number of Directors to be equal to such fixed number, or of summoning a general meeting of the Company, but for no other purpose. |
31.7 | The Directors may elect a chairman of their board and determine the period for which he is to hold office; but if no such chairman is elected, or if at any meeting the chairman is not present within five minutes after the time appointed for the meeting to commence, the Directors present may choose one of their number to be chairman of the meeting. |
31.8 | All acts done by any meeting of the Directors or of a committee of the Directors shall, notwithstanding that it is afterwards discovered that there was some defect in the appointment of any Director, and/or that they or any of them were disqualified, and/or had vacated their office and/or were not entitled to vote, be as valid as if every such person had been duly appointed and/or not disqualified to be a Director and/or had not vacated their office and/or had been entitled to vote, as the case may be. |
31.9 | A Director may be represented at any meetings of the board of Directors by a proxy appointed in writing by him. The proxy shall count towards the quorum and the vote of the proxy shall for all purposes be deemed to be that of the appointing Director. |
32 | Presumption of Assent |
33 | Directors' Interests |
33.1 | A Director may hold any other office or place of profit under the Company (other than the office of Auditor) in conjunction with his office of Director for such period and on such terms as to remuneration and otherwise as the Directors may determine. |
33.2 | A Director may act by himself or by, through or on behalf of his firm in a professional capacity for the Company and he or his firm shall be entitled to remuneration for professional services as if he were not a Director. |
33.3 | A Director may be or become a director or other officer of or otherwise interested in any company promoted by the Company or in which the Company may be interested as a shareholder, a contracting party or otherwise, and no such Director shall be accountable to the Company for any remuneration or other benefits received by him as a director or officer of, or from his interest in, such other company. |
33.4 | No person shall be disqualified from the office of Director or prevented by such office from contracting with the Company, either as vendor, purchaser or otherwise, nor shall any such contract or any contract or transaction entered into by or on behalf of the Company in which any Director shall be in any way interested be or be liable to be avoided, nor shall any Director so contracting or being so interested be liable to account to the Company for any profit realised by or arising in connection with any such contract or transaction by reason of such Director holding office or of the fiduciary relationship thereby established. A Director shall be at liberty to vote in respect of any contract or transaction in which he is interested provided that the nature of the interest of any Director in any such contract or transaction shall be disclosed by him at or prior to its consideration and any vote thereon. |
33.5 | A general notice that a Director is a shareholder, director, officer or employee of any specified firm or company and is to be regarded as interested in any transaction with such firm or company shall be sufficient disclosure for the purposes of voting on a resolution in respect of a contract or transaction in which he has an interest, and after such general notice it shall not be necessary to give special notice relating to any particular transaction. |
34 | Minutes |
35 | Delegation of Directors' Powers |
35.1 | The Directors may delegate any of their powers, authorities and discretions, including the power to sub-delegate, to any committee consisting of one or more Directors (including, without limitation, the Audit Committee, the Compensation Committee and the Nominating Committee). Any such delegation may be made subject to any conditions the Directors may impose and either collaterally with or to the exclusion of their own powers and any such delegation may be revoked or altered by the Directors. Subject to any such conditions, the proceedings of a committee of Directors shall be governed by the Articles regulating the proceedings of Directors, so far as they are capable of applying. |
35.2 | The Directors may establish any committees, local boards or agencies or appoint any person to be a manager or agent for managing the affairs of the Company and may appoint any person to be a member of such committees, local boards or agencies. Any such appointment may be made subject to any conditions |
35.3 | The Directors may adopt formal written charters for committees and, if so adopted, shall review and assess the adequacy of such formal written charters on an annual basis. Each of these committees shall be empowered to do all things necessary to exercise the rights of such committee set forth in the Articles and shall have such powers as the Directors may delegate pursuant to the Articles and as required by the rules and regulations of the Designated Stock Exchange, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under Applicable Law. Each of the Audit Committee, the Compensation Committee and the Nominating Committee, if established, shall consist of such number of Directors as the Directors shall from time to time determine (or such minimum number as may be required from time to time by the rules and regulations of the Designated Stock Exchange, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under Applicable Law). For so long as any class of Shares is listed on the Designated Stock Exchange, the Audit Committee, the Compensation Committee and the Nominating Committee shall be made up of such number of Independent Directors as is required from time to time by the rules and regulations of the Designated Stock Exchange, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under Applicable Law. |
35.4 | The Directors may by power of attorney or otherwise appoint any person to be the agent of the Company on such conditions as the Directors may determine, provided that the delegation is not to the exclusion of their own powers and may be revoked by the Directors at any time. |
35.5 | The Directors may by power of attorney or otherwise appoint any company, firm, person or body of persons, whether nominated directly or indirectly by the Directors, to be the attorney or authorised signatory of the Company for such purpose and with such powers, authorities and discretions (not exceeding those vested in or exercisable by the Directors under the Articles) and for such period and subject to such conditions as they may think fit, and any such powers of attorney or other appointment may contain such provisions for the protection and convenience of persons dealing with any such attorneys or authorised signatories as the Directors may think fit and may also authorise any such attorney or authorised signatory to delegate all or any of the powers, authorities and discretions vested in him. |
35.6 | The Directors may appoint such Officers as they consider necessary on such terms, at such remuneration and to perform such duties, and subject to such provisions as to disqualification and removal as the Directors may think fit. Unless otherwise specified in the terms of his appointment an Officer may be removed by resolution of the Directors or Members. An Officer may vacate his office at any time if he gives notice in writing to the Company that he resigns his office. |
36 | No Minimum Shareholding |
37 | Remuneration of Directors |
37.1 | The remuneration to be paid to the Directors, if any, shall be such remuneration as the Directors shall determine, provided that no cash remuneration shall be paid to any Director by the Company prior to the consummation of a Business Combination. The Directors shall also, whether prior to or after the consummation of a Business Combination, be entitled to be paid all travelling, hotel and other expenses properly incurred by them in connection with their attendance at meetings of Directors or committees of Directors, or general meetings of the Company, or separate meetings of the holders of any class of Shares or debentures of the Company, or otherwise in connection with the business of the Company or the discharge of their duties as a Director, or to receive a fixed allowance in respect thereof as may be determined by the Directors, or a combination partly of one such method and partly the other. |
37.2 | The Directors may by resolution approve additional remuneration to any Director for any services which in the opinion of the Directors go beyond his ordinary routine work as a Director. Any fees paid to a |
38 | Seal |
38.1 | The Company may, if the Directors so determine, have a Seal. The Seal shall only be used by the authority of the Directors or of a committee of the Directors authorised by the Directors. Every instrument to which the Seal has been affixed shall be signed by at least one person who shall be either a Director or some Officer or other person appointed by the Directors for the purpose. |
38.2 | The Company may have for use in any place or places outside the Cayman Islands a duplicate Seal or Seals each of which shall be a facsimile of the common Seal of the Company and, if the Directors so determine, with the addition on its face of the name of every place where it is to be used. |
38.3 | A Director or Officer, representative or attorney of the Company may without further authority of the Directors affix the Seal over his signature alone to any document of the Company required to be authenticated by him under seal or to be filed with the Registrar of Companies in the Cayman Islands or elsewhere wheresoever. |
39 | Dividends, Distributions and Reserve |
39.1 | Subject to the Statute and this Article and except as otherwise provided by the rights attached to any Shares, the Directors may resolve to pay Dividends and other distributions on Shares in issue and authorise payment of the Dividends or other distributions out of the funds of the Company lawfully available therefor. A Dividend shall be deemed to be an interim Dividend unless the terms of the resolution pursuant to which the Directors resolve to pay such Dividend specifically state that such Dividend shall be a final Dividend. No Dividend or other distribution shall be paid except out of the realised or unrealised profits of the Company, out of the share premium account or as otherwise permitted by law. |
39.2 | Except as otherwise provided by the rights attached to any Shares, all Dividends and other distributions shall be paid according to the par value of the Shares that a Member holds. If any Share is issued on terms providing that it shall rank for Dividend as from a particular date, that Share shall rank for Dividend accordingly. |
39.3 | The Directors may deduct from any Dividend or other distribution payable to any Member all sums of money (if any) then payable by him to the Company on account of calls or otherwise. |
39.4 | The Directors may resolve that any Dividend or other distribution be paid wholly or partly by the distribution of specific assets and in particular (but without limitation) by the distribution of shares, debentures, or securities of any other company or in any one or more of such ways and where any difficulty arises in regard to such distribution, the Directors may settle the same as they think expedient and in particular may issue fractional Shares and may fix the value for distribution of such specific assets or any part thereof and may determine that cash payments shall be made to any Members upon the basis of the value so fixed in order to adjust the rights of all Members and may vest any such specific assets in trustees in such manner as may seem expedient to the Directors. |
39.5 | Except as otherwise provided by the rights attached to any Shares, Dividends and other distributions may be paid in any currency. The Directors may determine the basis of conversion for any currency conversions that may be required and how any costs involved are to be met. |
39.6 | The Directors may, before resolving to pay any Dividend or other distribution, set aside such sums as they think proper as a reserve or reserves which shall, at the discretion of the Directors, be applicable for any purpose of the Company and pending such application may, at the discretion of the Directors, be employed in the business of the Company. |
39.7 | Any Dividend, other distribution, interest or other monies payable in cash in respect of Shares may be paid by wire transfer to the holder or by cheque or warrant sent through the post directed to the registered address of the holder or, in the case of joint holders, to the registered address of the holder who is first named on the Register of Members or to such person and to such address as such holder or joint holders may in writing direct. Every such cheque or warrant shall be made payable to the order of the person to whom it is sent. Any one of two or more joint holders may give effectual receipts for any Dividends, other distributions, bonuses, or other monies payable in respect of the Share held by them as joint holders. |
39.8 | No Dividend or other distribution shall bear interest against the Company. |
39.9 | Any Dividend or other distribution which cannot be paid to a Member and/or which remains unclaimed after six months from the date on which such Dividend or other distribution becomes payable may, in the discretion of the Directors, be paid into a separate account in the Company's name, provided that the Company shall not be constituted as a trustee in respect of that account and the Dividend or other distribution shall remain as a debt due to the Member. Any Dividend or other distribution which remains unclaimed after a period of six years from the date on which such Dividend or other distribution becomes payable shall be forfeited and shall revert to the Company. |
40 | Capitalisation |
41 | Books of Account |
41.1 | The Directors shall cause proper books of account (including, where applicable, material underlying documentation including contracts and invoices) to be kept with respect to all sums of money received and expended by the Company and the matters in respect of which the receipt or expenditure takes place, all sales and purchases of goods by the Company and the assets and liabilities of the Company. Such books of account must be retained for a minimum period of five years from the date on which they are prepared. Proper books shall not be deemed to be kept if there are not kept such books of account as are necessary to give a true and fair view of the state of the Company's affairs and to explain its transactions. |
41.2 | The Directors shall determine whether and to what extent and at what times and places and under what conditions or regulations the accounts and books of the Company or any of them shall be open to the inspection of Members not being Directors and no Member (not being a Director) shall have any right of inspecting any account or book or document of the Company except as conferred by Statute or authorised by the Directors or by the Company in general meeting. |
41.3 | The Directors may cause to be prepared and to be laid before the Company in general meeting profit and loss accounts, balance sheets, group accounts (if any) and such other reports and accounts as may be required by law. |
42 | Audit |
42.1 | The Directors may appoint an Auditor of the Company who shall hold office on such terms as the Directors determine. |
42.2 | Without prejudice to the freedom of the Directors to establish any other committee, if the Shares (or depositary receipts therefor) are listed or quoted on the Designated Stock Exchange, and if required by the rules and regulations of the Designated Stock Exchange, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under Applicable Law, the Directors shall establish and maintain an Audit Committee as a committee of the Directors and shall adopt a formal written Audit Committee charter and review and assess the adequacy of the formal written charter on an annual basis. The composition and responsibilities of the Audit Committee shall comply with the rules and regulations of the Designated Stock Exchange, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under Applicable Law. The Audit Committee shall meet at least once every financial quarter, or more frequently as circumstances dictate. |
42.3 | If the Shares (or depositary receipts therefor) are listed or quoted on the Designated Stock Exchange, the Company shall conduct an appropriate review of all related party transactions on an ongoing basis and shall utilise the Audit Committee for the review and approval of potential conflicts of interest. |
42.4 | The remuneration of the Auditor shall be fixed by the Audit Committee (if one exists). |
42.5 | If the office of Auditor becomes vacant by resignation or death of the Auditor, or by his becoming incapable of acting by reason of illness or other disability at a time when his services are required, the Directors shall fill the vacancy and determine the remuneration of such Auditor. |
42.6 | Every Auditor of the Company shall have a right of access at all times to the books and accounts and vouchers of the Company and shall be entitled to require from the Directors and Officers such information and explanation as may be necessary for the performance of the duties of the Auditor. |
42.7 | Auditors shall, if so required by the Directors, make a report on the accounts of the Company during their tenure of office at the next annual general meeting following their appointment in the case of a company which is registered with the Registrar of Companies as an ordinary company, and at the next extraordinary general meeting following their appointment in the case of a company which is registered with the Registrar of Companies as an exempted company, and at any other time during their term of office, upon request of the Directors or any general meeting of the Members. |
42.8 | Any payment made to members of the Audit Committee (if one exists) shall require the review and approval of the Directors, with any Director interested in such payment abstaining from such review and approval. |
42.9 | The Audit Committee shall monitor compliance with the terms of the IPO and, if any non-compliance is identified, the Audit Committee shall be charged with the responsibility to take all action necessary to rectify such non-compliance or otherwise cause compliance with the terms of the IPO. |
42.10 | At least one member of the Audit Committee shall be an “audit committee financial expert” as determined by the rules and regulations of the Designated Stock Exchange, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under Applicable Law. The “audit committee financial expert” shall have such past employment experience in finance or accounting, requisite professional certification in accounting, or any other comparable experience or background which results in the individual’s financial sophistication. |
43 | Notices |
43.1 | Notices shall be in writing and may be given by the Company to any Member either personally or by sending it by courier, post, cable, telex, fax or e-mail to him or to his address as shown in the Register of Members (or where the notice is given by e-mail by sending it to the e-mail address provided by such Member). Notice may also be served by Electronic Communication in accordance with the rules and regulations of the Designated Stock Exchange, the Securities and Exchange Commission and/or any other competent regulatory authority or by placing it on the Company’s Website. |
43.2 | Where a notice is sent by: |
(a) | courier; service of the notice shall be deemed to be effected by delivery of the notice to a courier company, and shall be deemed to have been received on the third day (not including Saturdays or Sundays or public holidays) following the day on which the notice was delivered to the courier; |
(b) | post; service of the notice shall be deemed to be effected by properly addressing, pre paying and posting a letter containing the notice, and shall be deemed to have been received on the fifth day (not including Saturdays or Sundays or public holidays in the Cayman Islands) following the day on which the notice was posted; |
(c) | cable, telex or fax; service of the notice shall be deemed to be effected by properly addressing and sending such notice and shall be deemed to have been received on the same day that it was transmitted; |
(d) | e-mail or other Electronic Communication; service of the notice shall be deemed to be effected by transmitting the e-mail to the e-mail address provided by the intended recipient and shall be deemed to have been received on the same day that it was sent, and it shall not be necessary for the receipt of the e-mail to be acknowledged by the recipient; and |
(e) | placing it on the Company’s Website; service of the notice shall be deemed to have been effected one hour after the notice or document was placed on the Company’s Website. |
43.3 | A notice may be given by the Company to the person or persons which the Company has been advised are entitled to a Share or Shares in consequence of the death or bankruptcy of a Member in the same manner as other notices which are required to be given under the Articles and shall be addressed to them by name, or by the title of representatives of the deceased, or trustee of the bankrupt, or by any like description at the address supplied for that purpose by the persons claiming to be so entitled, or at the option of the Company by giving the notice in any manner in which the same might have been given if the death or bankruptcy had not occurred. |
43.4 | Notice of every general meeting shall be given in any manner authorised by the Articles to every holder of Shares carrying an entitlement to receive such notice on the record date for such meeting except that in the case of joint holders the notice shall be sufficient if given to the joint holder first named in the Register of Members and every person upon whom the ownership of a Share devolves by reason of his being a legal personal representative or a trustee in bankruptcy of a Member where the Member but for his death or bankruptcy would be entitled to receive notice of the meeting, and no other person shall be entitled to receive notices of general meetings. |
44 | Winding Up |
44.1 | If the Company shall be wound up, the liquidator shall apply the assets of the Company in satisfaction of creditors' claims in such manner and order as such liquidator thinks fit. Subject to the rights attaching to any Shares, in a winding up: |
(a) | if the assets available for distribution amongst the Members shall be insufficient to repay the whole of the Company's issued share capital, such assets shall be distributed so that, as nearly as may be, the losses shall be borne by the Members in proportion to the par value of the Shares held by them; or |
(b) | if the assets available for distribution amongst the Members shall be more than sufficient to repay the whole of the Company's issued share capital at the commencement of the winding up, the surplus shall be distributed amongst the Members in proportion to the par value of the Shares held by them at the commencement of the winding up subject to a deduction from those Shares in respect of which there are monies due, of all monies payable to the Company for unpaid calls or otherwise. |
44.2 | If the Company shall be wound up the liquidator may, subject to the rights attaching to any Shares and with the approval of a Special Resolution of the Company and any other approval required by the Statute, divide amongst the Members in kind the whole or any part of the assets of the Company (whether such assets shall consist of property of the same kind or not) and may for that purpose value any assets and determine how the division shall be carried out as between the Members or different classes of Members. The liquidator may, with the like approval, vest the whole or any part of such assets in trustees upon such trusts for the benefit of the Members as the liquidator, with the like approval, shall think fit, but so that no Member shall be compelled to accept any asset upon which there is a liability. |
45 | Indemnity and Insurance |
45.1 | Every Director and Officer (which for the avoidance of doubt, shall not include auditors of the Company), together with every former Director and former Officer (each an “Indemnified Person”) shall be indemnified out of the assets of the Company against any liability, action, proceeding, claim, demand, costs, damages or expenses, including legal expenses, whatsoever which they or any of them may incur as a result of any act or failure to act in carrying out their functions other than such liability (if any) that they may incur by reason of their own actual fraud, wilful neglect or wilful default. No Indemnified Person shall be liable to the Company for any loss or damage incurred by the Company as a result (whether direct or |
45.2 | The Company shall advance to each Indemnified Person reasonable attorneys' fees and other costs and expenses incurred in connection with the defence of any action, suit, proceeding or investigation involving such Indemnified Person for which indemnity will or could be sought. In connection with any advance of any expenses hereunder, the Indemnified Person shall execute an undertaking to repay the advanced amount to the Company if it shall be determined by final judgment or other final adjudication that such Indemnified Person was not entitled to indemnification pursuant to this Article. If it shall be determined by a final judgment or other final adjudication that such Indemnified Person was not entitled to indemnification with respect to such judgment, costs or expenses, then such party shall not be indemnified with respect to such judgment, costs or expenses and any advancement shall be returned to the Company (without interest) by the Indemnified Person. |
45.3 | The Directors, on behalf of the Company, may purchase and maintain insurance for the benefit of any Director or Officer against any liability which, by virtue of any rule of law, would otherwise attach to such person in respect of any negligence, default, breach of duty or breach of trust of which such person may be guilty in relation to the Company. |
46 | Financial Year |
47 | Transfer by Way of Continuation |
48 | Mergers and Consolidations |
49 | Business Combination |
49.1 | Notwithstanding any other provision of the Articles, this Article shall apply during the period commencing upon the adoption of the Articles and terminating upon the first to occur of the consummation of a Business Combination and the full distribution of the Trust Account pursuant to this Article. In the event of a conflict between this Article and any other Articles, the provisions of this Article shall prevail. |
49.2 | Prior to the consummation of a Business Combination, the Company shall either: |
(a) | submit such Business Combination to its Members for approval; or |
(b) | provide Members with the opportunity to have their Shares repurchased by means of a tender offer for a per-Share repurchase price payable in cash, equal to the aggregate amount then on deposit in the Trust Account, calculated as of two business days prior to the consummation of such Business Combination, including interest earned on the Trust Account (net of taxes paid or payable, if any), divided by the number of then issued Public Shares. |
49.3 | If the Company initiates any tender offer in accordance with Rule 13e-4 and Regulation 14E of the Exchange Act in connection with a proposed Business Combination, it shall file tender offer documents with the Securities and Exchange Commission prior to completing such Business Combination which contain substantially the same financial and other information about such Business Combination and the redemption rights as is required under Regulation 14A of the Exchange Act. If, alternatively, the Company holds a general meeting to approve a proposed Business Combination, the Company will conduct any redemptions in conjunction with a proxy solicitation pursuant to Regulation 14A of the Exchange Act, and not pursuant to the tender offer rules, and file proxy materials with the Securities and Exchange Commission. |
49.4 | At a general meeting called for the purposes of approving a Business Combination pursuant to this Article, in the event that such Business Combination is approved by Ordinary Resolution, the Company shall be authorised to consummate such Business Combination, provided that the Company shall not consummate such Business Combination unless the Company has net tangible assets of at least US$5,000,001 immediately prior to, or upon such consummation of, or any greater net tangible asset or cash requirement that may be contained in the agreement relating to, such Business Combination. |
49.5 | Any Member holding Public Shares who is not the Sponsor, a Founder, Officer or Director may, at least two business days’ prior to any vote on a Business Combination, elect to have their Public Shares redeemed for cash, in accordance with any applicable requirements provided for in the related proxy materials (the “IPO Redemption”), provided that no such Member acting together with any Affiliate of his or any other person with whom he is acting in concert or as a partnership, limited partnership, syndicate, or other group for the purposes of acquiring, holding, or disposing of Shares may exercise this redemption right with respect to more than 15 per cent of the Public Shares in the aggregate without the prior consent of the Company and provided further that any beneficial holder of Public Shares on whose behalf a redemption right is being exercised must identify itself to the Company in connection with any redemption election in order to validly redeem such Public Shares. If so demanded, the Company shall pay any such redeeming Member, regardless of whether he is voting for or against such proposed Business Combination, a per-Share redemption price payable in cash, equal to the aggregate amount then on deposit in the Trust Account calculated as of two business days prior to the consummation of the Business Combination, including interest earned on the Trust Account (such interest shall be net of taxes payable) and not previously released to the Company to pay its taxes, divided by the number of then issued Public Shares (such redemption price being referred to herein as the “Redemption Price”), but only in the event that the applicable proposed Business Combination is approved and consummated. The Company shall not redeem Public Shares that would cause the Company’s net tangible assets to be less than US$5,000,001 following such redemptions (the “Redemption Limitation”). |
49.6 | A Member may not withdraw a Redemption Notice once submitted to the Company unless the Directors determine (in their sole discretion) to permit the withdrawal of such redemption request (which they may do in whole or in part). |
49.7 | In the event that the Company does not consummate a Business Combination within 24 months from the consummation of the IPO, or such later time as the Members may approve in accordance with the Articles, the Company shall: |
(a) | cease all operations except for the purpose of winding up; |
(b) | as promptly as reasonably possible but not more than ten business days thereafter, redeem the Public Shares, at a per-Share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest earned on the funds held in the Trust Account and not previously released to the Company (less taxes payable and up to US$100,000 of interest to pay dissolution expenses), divided by the number of then Public Shares in issue, which redemption will completely extinguish public Members' rights as Members (including the right to receive further liquidation distributions, if any); and |
(c) | as promptly as reasonably possible following such redemption, subject to the approval of the Company's remaining Members and the Directors, liquidate and dissolve, |
49.8 | In the event that any amendment is made to the Articles: |
(a) | to modify the substance or timing of the Company's obligation to allow redemption in connection with a Business Combination or redeem 100 per cent of the Public Shares if the Company does not consummate a Business Combination within 24 months from the consummation of the IPO, or such later time as the Members may approve in accordance with the Articles; or |
(b) | with respect to any other provision relating to Members’ rights or pre-Business Combination activity, |
49.9 | A holder of Public Shares shall be entitled to receive distributions from the Trust Account only in the event of an IPO Redemption, a repurchase of Shares by means of a tender offer pursuant to this Article, or a distribution of the Trust Account pursuant to this Article. In no other circumstance shall a holder of Public Shares have any right or interest of any kind in the Trust Account. |
49.10 | After the issue of Public Shares, and prior to the consummation of a Business Combination, the Company shall not issue additional Shares or any other securities that would entitle the holders thereof to: |
(a) | receive funds from the Trust Account; or |
(b) | vote as a class with Public Shares on a Business Combination. |
49.11 | The uninterested Independent Directors shall approve any transaction or transactions between the Company and any of the following parties: |
(a) | any Member owning an interest in the voting power of the Company that gives such Member a significant influence over the Company; and |
(b) | any Director or Officer and any Affiliate of such Director or Officer. |
49.12 | A Director may vote in respect of a Business Combination in which such Director has a conflict of interest with respect to the evaluation of such Business Combination. Such Director must disclose such interest or conflict to the other Directors. |
49.13 | As long as the securities of the Company are listed on the Nasdaq Capital Market, the Company must complete one or more Business Combinations having an aggregate fair market value of at least 80 per cent of the assets held in the Trust Account (excluding the deferred underwriting commissions and taxes payable on the income earned on the Trust Account) at the time of the Company's signing a definitive agreement in connection with a Business Combination. A Business Combination must not be effectuated with another blank cheque company or a similar company with nominal operations. |
49.14 | The Company may enter into a Business Combination with a target business that is Affiliated with the Sponsor, a Founder, a Director or an Officer. In the event the Company seeks to consummate a Business Combination with a target that is Affiliated with the Sponsor, a Founder, a Director or an Officer, the Company, or a committee of Independent Directors, will obtain an opinion from an independent investment banking firm or another valuation or appraisal firm that regularly renders fairness opinions on the type of target business the Company is seeking to acquire that is a member of the United States Financial Industry Regulatory Authority or an independent accounting firm that such a Business Combination is fair to the Company from a financial point of view. |
Item 20. | Indemnification of directors and officers. |
Item 21. | Exhibits And Financial Statements Schedules |
Exhibit No. | | | Description of Exhibit |
| | Amended and Restated Agreement and Plan of Merger, dated as of April 14, 2022, by and among Tuatara, Merger Sub and SpringBig, as amended by Amendment No.1, dated as of May 4, 2022 (included as Annex A to the proxy statement/prospectus). | |
| | Amended and Restated Memorandum and Articles of Association (included as Annex E to this proxy statement/prospectus). | |
| | Form of Certificate of Incorporation of New SpringBig, to become effective upon the domestication (included as Annex B to the proxy statement/prospectus). | |
| | Form of Bylaws of New SpringBig, to become effective upon the domestication (included as Annex C to the proxy statement/prospectus). | |
| | Form of Certificate of Corporate Domestication of Tuatara Capital Acquisition Corporation to be filed with the Secretary of State of the State of Delaware | |
| | Specimen Unit Certificate (incorporated by reference to Exhibit 4.1 of Amendment No. 1 to Tuatara’s Registration Statement on Form S-1 (No. 333-252484), filed with the SEC on February 4, 2021). | |
| | Specimen Ordinary Share Certificate (incorporated by reference to Exhibit 4.2 of Amendment No. 1 to Tuatara’s Registration Statement on Form S-1 (No. 333-252484), filed with the SEC on February 4, 2021). | |
| | Specimen Warrant Certificate (incorporated by reference to Exhibit 4.3 of Amendment No. 1 to Tuatara’s Registration Statement on Form S-1 (No. 333-252484), filed with the SEC on February 4, 2021). | |
| | Form of Warrant Agreement between Continental Stock Transfer & Trust Company and Tuatara (incorporated by reference to Exhibit 4.4 of Amendment No. 1 to Tuatara’s Registration Statement on Form S-1 (No. 333-252484), filed with the SEC on February 4, 2021). | |
| | Opinion of Davis Polk & Wardwell LLP as to matters concerning the laws of the State of Delaware as to the validity of the common shares and warrants of Tuatara Capital Acquisition Corporation. | |
| | Tax Opinion of Davis Polk & Wardwell LLP. | |
| | Sponsor Agreement (incorporated by reference to Exhibit 10.1 of Tuatara’s Form 8-K (File No. 001-40049), filed with the SEC on November 9, 2021). | |
| | Form of Subscription Agreement (incorporated by reference to Exhibit 10.2 of Tuatara’s Form 8-K (File No. 001-40049), filed with the SEC on November 9, 2021). | |
| | Voting and Support Agreement (incorporated by reference to Exhibit 10.3 of Tuatara’s Form 8-K (File No. 001-40049), filed with the SEC on November 9, 2021). | |
| | Form of Amended and Restated Registration Rights Agreement (incorporated by reference to Exhibit 10.4 of Tuatara’s Form 8-K (File No. 001-40049), filed with the SEC on November 9, 2021). |
Exhibit No. | | | Description of Exhibit |
| | Form of Letter Agreement among Tuatara and its officers, directors and TCAC Sponsor, LLC (incorporated by reference to Exhibit 10.2 of Amendment No. 1 to Tuatara’s Registration Statement on Form S-1 (No. 333-252484), filed with the SEC on February 4, 2021). | |
| | Form of Investment Management Trust Agreement between Continental Stock Transfer & Trust Company and Tuatara (incorporated by reference to Exhibit 10.3 of Amendment No. 1 to Tuatara’s Registration Statement on Form S-1 (No. 333-252484), filed with the SEC on February 4, 2021). | |
| | Form of Registration Rights Agreement between Tuatara and certain security holders (incorporated by reference to Exhibit 10.4 of Amendment No. 1 to Tuatara’s Registration Statement on Form S-1 (No. 333-252484), filed with the SEC on February 4, 2021). | |
| | Form of Convertible Note, by and between SpringBig, Inc. and the undersigned party thereto. | |
| | Securities Purchase Agreement, dated April 29, 2022, among Tuatara and the purchasers party thereto (incorporated by reference to Exhibit 10.1 Tuatara’s Form 8-K (File No. 001-40049), filed with the SEC on May 2, 2022). | |
| | Common Stock Purchase Agreement, dated April 29, 2022, between Tuatara and CF Principal Investments LLC (incorporated by reference to Exhibit 10.2 Tuatara’s Form 8-K (File No. 001-40049), filed with the SEC on May 2, 2022). | |
| | Registration Rights Agreement, dated April 29, 2022, between Tuatara and CF Principal Investments LLC (incorporated by reference to Exhibit 10.3 Tuatara’s Form 8-K (File No. 001-40049), filed with the SEC on May 2, 2022). | |
| | List of Subsidiaries of Tuatara Capital Acquisition Corporation. | |
| | Consent of WithumSmith+Brown, PC. | |
| | Consent of Marcum LLP, Independent Registered Public Accounting Firm of SpringBig, Inc. | |
| | Consent of Davis Polk & Wardwell LLP (included in Exhibit 5.1). | |
| | Consent of Davis Polk & Wardwell LLP (included in Exhibit 8.1). | |
| | Power of Attorney (included on signature page). | |
| | Form of Proxy Card for Tuatara Capital Acquisition Corporation General Meeting. | |
| | Consent of Sergey Sherman to be Named as a Director Nominee. | |
| | Consent of Jeffrey Harris to be Named as a Director Nominee. | |
| | Consent of Steven Bernstein to be Named as a Director Nominee. | |
| | Consent of Patricia Glassford to be Named as a Director Nominee. | |
| | Consent of Amanda Lannert to be Named as a Director Nominee. | |
| | Consent of Phil Schwarz to be Named as a Director Nominee. | |
| | Consent of Jon Trauben to be Named as a Director Nominee. | |
101.INS | | | XBRL Instance Document. |
101.SCH | | | XBRL Taxonomy Extension Schema Document. |
101.CAL | | | XBRL Taxonomy Extension Calculation Linkbase Document. |
101.DEF | | | XBRL Taxonomy Extension Definition Linkbase Document. |
101.LAB | | | XBRL Taxonomy Extension Label Linkbase Document. |
101.PRE | | | XBRL Taxonomy Extension Presentation Linkbase Document. |
| | Filing Fee Table |
* | Previously filed. |
† | Schedules to this exhibit have been omitted pursuant to Item 601(b)(2) of Regulation S-K. The registrant hereby agrees to furnish a copy of any omitted schedules to the SEC upon request. |
Item 22. | Undertakings. |
1. | The undersigned Registrant hereby undertakes: |
(a) | To file, during any period in which offers or sales are being made, a post-effective amendment to this Registration Statement: |
(i) | To include any prospectus required by section 10(a)(3) of the Securities Act of 1933; |
(ii) | To reflect in the prospectus any facts or events arising after the effective date of this Registration |
(iii) | To include any material information with respect to the plan of distribution not previously disclosed in this Registration Statement or any material change to such information in this Registration Statement; and |
(b) | That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. |
(c) | To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering. |
(d) | That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use. |
(e) | That, for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities, the undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser: |
(i) | Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424; |
(ii) | Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant; |
(iii) | The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and |
(iv) | Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser. |
2. | Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act of 1933 and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a director, officer or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being |
3. | The undersigned registrant hereby undertakes as follows: that prior to any public reoffering of the securities registered hereunder through use of a prospectus which is a part of this registration statement, by any person or party who is deemed to be an underwriter within the meaning of Rule 145(c), the issuer undertakes that such reoffering prospectus will contain the information called for by the applicable registration form with respect to reofferings by persons who may be deemed underwriters, in addition to the information called for by the other items of the applicable form. |
4. | The registrant undertakes that every prospectus: (1) that is filed pursuant to the immediately preceding paragraph, or (2) that purports to meet the requirements of Section 10(a)(3) of the Act and is used in connection with an offering of securities subject to Rule 415, will be filed as a part of an amendment to the registration statement and will not be used until such amendment is effective, and that, for purposes of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. |
5. | The undersigned Registrant hereby undertakes to respond to requests for information that is incorporated by reference into the prospectus pursuant to Item 4, 10(b), 11 or 13 of this Form S-4, within one business day of receipt of such request, and to send the incorporated documents by first class mail or other equally prompt means. This includes information contained in documents filed subsequent to the effective date of this Registration Statement through the date of responding to the request. |
6. | The undersigned Registrant hereby undertakes to supply by means of a post-effective amendment all information concerning this transaction that was not the subject of and included in this Registration Statement when it became effective. |
| | TUATARA CAPITAL ACQUISITION CORPORATION | |||||||
| | ||||||||
| | By: | | | /s/ Albert Foreman | ||||
| | | | Name: | | | Albert Foreman | ||
| | | | Title: | | | Chief Executive Officer |
Signature | | | Capacity | | | Date |
/s/ Albert Foreman | | | Chief Executive Officer and Director (Principal Executive Officer) | | | May |
Albert Foreman | | | ||||
| | | | |||
* | | | Chief Operating Officer and Director | | | May |
Mark Zittman | | | ||||
| | | | |||
* | | | Chief Financial Officer (Principal Financial and Accounting Officer) | | | May |
Sergey Sherman | | | ||||
| | | | |||
* | | | Chairman of the Board of Directors | | | May |
Richard Taney | | | ||||
| | | | |||
* | | | Director | | | May |
Jeff Bornstein | | | ||||
| | | | |||
* | | | Director | | | May |
Michael Finkelman | | |
*By: | | | /s/ Albert Foreman | | | |
| | Albert Foreman Attorney-in-Fact | |