Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 15, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2022 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Registrant Name | HPX CORP. | |
Entity File Number | 001-39382 | |
Entity Incorporation, State or Country Code | E9 | |
Entity Tax Identification Number | 98-1550444 | |
Entity Address, Address Line One | 1000 N. West Street, Suite 1200 | |
Entity Address, City or Town | Wilmington | |
Entity Address State Or Province | DE | |
Entity Address, Postal Zip Code | 19801 | |
City Area Code | 302 | |
Local Phone Number | 295-4929 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | true | |
Entity Central Index Key | 0001809353 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Class A Ordinary Shares | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Class A ordinary shares, par value $0.0001 per share | |
Trading Symbol | HPX | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 25,300,000 | |
Class B Ordinary Shares | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 6,305,000 | |
Units, each consisting of one Class A ordinary share and one-half of one redeemable warrant | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Units, each consisting of one Class A ordinary share and one-half of one redeemable warrant | |
Trading Symbol | HPX.U | |
Security Exchange Name | NYSE | |
Redeemable warrants, each whole warrant exercisable for one Class A ordinary share | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Redeemable warrants, each whole warrant exercisable for one Class A ordinary share at an exercise price of $11.50 | |
Trading Symbol | HPX WS | |
Security Exchange Name | NYSE |
CONDENSED BALANCE SHEETS
CONDENSED BALANCE SHEETS - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash | $ 778,575 | $ 549,792 |
Prepaid expenses | 57,576 | 99,402 |
Total Current Assets | 836,151 | 649,194 |
Marketable securities held in Trust Account | 253,381,468 | 253,037,516 |
TOTAL ASSETS | 254,217,619 | 253,686,710 |
Current liabilities | ||
Accounts payable and accrued expenses | 682,464 | 555,895 |
Accrued offering costs | 159,880 | 159,880 |
Promissory note - related party | 700,000 | |
Total Current Liabilities | 1,542,344 | 715,775 |
Deferred legal fees | 3,092,479 | |
Warrant liabilities | 1,574,829 | 10,556,676 |
Deferred underwriting fee payable | 8,855,000 | 8,855,000 |
Total Liabilities | 15,064,652 | 20,127,451 |
Commitments and Contingencies (Note 6) | ||
Class A ordinary shares subject to possible redemption; 25,300,000 shares at redemption value at March 31, 2022 and December 31, 2021 | 253,381,468 | 253,037,516 |
Shareholders' Deficit | ||
Preference shares, $0.0001 par value; 5,000,000 shares authorized; none issued and outstanding | ||
Accumulated deficit | (14,229,132) | (19,478,888) |
Total Shareholders' Deficit | (14,228,501) | (19,478,257) |
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT | 254,217,619 | 253,686,710 |
Class B Ordinary Shares | ||
Shareholders' Deficit | ||
Ordinary shares | $ 631 | $ 631 |
CONDENSED BALANCE SHEETS (Paren
CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
Preference shares, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Preference shares, Shares Authorized | 5,000,000 | 5,000,000 |
Preference shares, Shares Issued | 0 | 0 |
Preference shares, Shares Outstanding | 0 | 0 |
Class A Ordinary Shares | ||
Ordinary shares, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Ordinary shares, Shares Authorized | 500,000,000 | 500,000,000 |
Ordinary shares, Shares Issued | 0 | 0 |
Ordinary shares, Shares Outstanding | 0 | 0 |
Class A ordinary shares subject to possible redemption | ||
Ordinary shares subject to possible redemption outstanding (in shares) | 25,300,000 | 25,300,000 |
Class B Ordinary Shares | ||
Ordinary shares, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Ordinary shares, Shares Authorized | 50,000,000 | 50,000,000 |
Ordinary shares, Shares Issued | 6,305,000 | 6,305,000 |
Ordinary shares, Shares Outstanding | 6,305,000 | 6,305,000 |
CONDENSED STATEMENTS OF OPERATI
CONDENSED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Operating and formation costs | $ 2,440,653 | $ 385,917 | $ 3,732,091 | $ 565,570 |
Loss from operations | (2,440,653) | (385,917) | (3,732,091) | (565,570) |
Other income (expense): | ||||
Change in fair value of warrant liabilities | 2,006,478 | (1,450,300) | 8,981,847 | 3,674,300 |
Interest income from operating bank account | 24 | 51 | ||
Earnings on marketable securities held in Trust Account | 321,395 | 6,309 | 343,952 | 12,548 |
Total other income (expense), net | 2,327,873 | (1,443,967) | 9,325,799 | 3,686,899 |
Net (loss) income | (112,780) | (1,829,884) | 5,593,708 | 3,121,329 |
Class A Ordinary Shares | ||||
Other income (expense): | ||||
Net (loss) income | $ (90,281) | $ (1,463,907) | $ 4,474,966 | $ 2,497,063 |
Basic weighted average shares outstanding | 25,300,000 | 25,300,000 | 25,300,000 | 25,300,000 |
Diluted weighted average shares outstanding | 25,300,000 | 25,300,000 | 25,300,000 | 25,300,000 |
Basic net income (loss) per ordinary share | $ 0 | $ (0.06) | $ 0.18 | $ 0.10 |
Diluted net income (loss) per ordinary share | $ 0 | $ (0.06) | $ 0.18 | $ 0.10 |
Class B Ordinary Shares | ||||
Other income (expense): | ||||
Net (loss) income | $ (22,499) | $ (365,977) | $ 1,118,742 | $ 624,266 |
Basic weighted average shares outstanding | 6,305,000 | 6,325,000 | 6,305,000 | 6,325,000 |
Diluted weighted average shares outstanding | 6,305,000 | 6,325,000 | 6,305,000 | 6,325,000 |
Basic net income (loss) per ordinary share | $ 0 | $ (0.06) | $ 0.18 | $ 0.10 |
Diluted net income (loss) per ordinary share | $ 0 | $ (0.06) | $ 0.18 | $ 0.10 |
CONDENSED STATEMENTS OF CHANGES
CONDENSED STATEMENTS OF CHANGES IN SHAREHOLDERS DEFICIT - USD ($) | Common Stock Class A Ordinary Shares | Common Stock Class B Ordinary Shares | Additional Paid in Capital | Accumulated Deficit | Class A Ordinary Shares | Class B Ordinary Shares | Total |
Beginning Balance at Dec. 31, 2020 | $ 0 | $ 633 | $ 0 | $ (28,848,313) | $ (28,847,680) | ||
Beginning Balance (shares) at Dec. 31, 2020 | 0 | 6,325,000 | |||||
STATEMENT OF CHANGES IN SHAREHOLDERS' DEFICIT | |||||||
Cancellation of Class B ordinary shares | $ (2) | 2 | |||||
Cancellation of Class B ordinary shares (Shares) | (20,000) | ||||||
Remeasurement of Class A ordinary shares to redemption amount | (6,239) | (6,239) | |||||
Net income (loss) | 4,951,213 | 4,951,213 | |||||
Ending Balance at Mar. 31, 2021 | $ 631 | (23,903,337) | (23,902,706) | ||||
Ending Balance (shares) at Mar. 31, 2021 | 6,305,000 | ||||||
Beginning Balance at Dec. 31, 2020 | $ 0 | $ 633 | 0 | (28,848,313) | (28,847,680) | ||
Beginning Balance (shares) at Dec. 31, 2020 | 0 | 6,325,000 | |||||
STATEMENT OF CHANGES IN SHAREHOLDERS' DEFICIT | |||||||
Net income (loss) | $ 2,497,063 | $ 624,266 | 3,121,329 | ||||
Ending Balance at Jun. 30, 2021 | $ 631 | (25,739,530) | (25,738,899) | ||||
Ending Balance (shares) at Jun. 30, 2021 | 6,305,000 | ||||||
Beginning Balance at Mar. 31, 2021 | $ 631 | (23,903,337) | (23,902,706) | ||||
Beginning Balance (shares) at Mar. 31, 2021 | 6,305,000 | ||||||
STATEMENT OF CHANGES IN SHAREHOLDERS' DEFICIT | |||||||
Remeasurement of Class A ordinary shares to redemption amount | (6,309) | (6,309) | |||||
Net income (loss) | (1,829,884) | $ (1,463,907) | $ (365,977) | (1,829,884) | |||
Ending Balance at Jun. 30, 2021 | $ 631 | (25,739,530) | (25,738,899) | ||||
Ending Balance (shares) at Jun. 30, 2021 | 6,305,000 | ||||||
Beginning Balance at Dec. 31, 2021 | $ 0 | $ 631 | 0 | (19,478,888) | (19,478,257) | ||
Beginning Balance (shares) at Dec. 31, 2021 | 0 | 6,305,000 | 0 | 6,305,000 | |||
STATEMENT OF CHANGES IN SHAREHOLDERS' DEFICIT | |||||||
Remeasurement of Class A ordinary shares to redemption amount | 37,516 | 37,516 | |||||
Net income (loss) | 5,706,488 | 5,706,488 | |||||
Ending Balance at Mar. 31, 2022 | $ 631 | (13,734,884) | (13,734,253) | ||||
Ending Balance (shares) at Mar. 31, 2022 | 6,305,000 | ||||||
Beginning Balance at Dec. 31, 2021 | $ 0 | $ 631 | $ 0 | (19,478,888) | (19,478,257) | ||
Beginning Balance (shares) at Dec. 31, 2021 | 0 | 6,305,000 | 0 | 6,305,000 | |||
STATEMENT OF CHANGES IN SHAREHOLDERS' DEFICIT | |||||||
Remeasurement of Class A ordinary shares to redemption amount | (343,952) | ||||||
Net income (loss) | $ 4,474,966 | $ 1,118,742 | 5,593,708 | ||||
Ending Balance at Jun. 30, 2022 | $ 631 | (14,229,132) | (14,228,501) | ||||
Ending Balance (shares) at Jun. 30, 2022 | 6,305,000 | 0 | 6,305,000 | ||||
Beginning Balance at Mar. 31, 2022 | $ 631 | (13,734,884) | (13,734,253) | ||||
Beginning Balance (shares) at Mar. 31, 2022 | 6,305,000 | ||||||
STATEMENT OF CHANGES IN SHAREHOLDERS' DEFICIT | |||||||
Remeasurement of Class A ordinary shares to redemption amount | (381,468) | (381,468) | |||||
Net income (loss) | (112,780) | $ (90,281) | $ (22,499) | (112,780) | |||
Ending Balance at Jun. 30, 2022 | $ 631 | $ (14,229,132) | $ (14,228,501) | ||||
Ending Balance (shares) at Jun. 30, 2022 | 6,305,000 | 0 | 6,305,000 |
CONDENSED STATEMENTS OF CASH FL
CONDENSED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Cash Flows from Operating Activities: | ||||
Net income | $ 5,593,708 | $ 3,121,329 | ||
Adjustments to reconcile net income to net cash used in operating activities: | ||||
Change in fair value of warrant liabilities | $ (2,006,478) | $ 1,450,300 | (8,981,847) | (3,674,300) |
Earnings on marketable securities held in Trust Account | (343,952) | (12,548) | ||
Changes in operating assets and liabilities: | ||||
Prepaid expenses | 41,826 | 50,606 | ||
Accounts payable and accrued expenses | 126,569 | 302,237 | ||
Deferred legal fees | 3,092,479 | |||
Net cash used in operating activities | (471,217) | (212,676) | ||
Cash Flows from Financing Activities: | ||||
Proceeds from promissory note - related party | 700,000 | 0 | ||
Net cash provided by financing activities | 700,000 | |||
Net Change in Cash | 228,783 | (212,676) | ||
Cash - Beginning of period | 549,792 | 1,132,050 | ||
Cash - End of period | $ 778,575 | $ 919,374 | 778,575 | 919,374 |
Non-Cash Investing and Financing Activities: | ||||
Remeasurement of Class A ordinary shares to redemption amount | $ 343,952 | $ 6,309 |
DESCRIPTION OF ORGANIZATION AND
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS | 6 Months Ended |
Jun. 30, 2022 | |
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS | |
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS | NOTE 1. DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS HPX Corp. (the “Company”) is a blank check company incorporated as a Cayman Islands exempted company on March 20, 2020. The Company was formed for the purpose of effecting a merger, amalgamation, share exchange, asset acquisition, share purchase, reorganization or other similar business combination with one or more businesses (a “Business Combination”). Although the Company is not limited to a particular industry or sector for purposes of consummating a Business Combination, the Company intends to focus on businesses in Brazil. The Company is an early stage and emerging growth company and, as such, the Company is subject to all of the risks associated with early stage and emerging growth companies. As of June 30, 2022, the Company had not commenced any operations. All activity through June 30, 2022 relates to the Company’s formation, its initial public offering (“Initial Public Offering”), which is described below, and after the Initial Public Offering, the search for a target company for a Business Combination. The Company will not generate any operating revenues until after the completion of a Business Combination, at the earliest. The Company generates non-operating income in the form of earnings from the marketable securities held in the Trust Account (as defined below). Recent Developments Proposed Business Combination As previously reported in our current report on Form 8-K filed with the SEC on July 7, 2022, on July 5, 2022, the Company entered into a Business Combination Agreement (the “Business Combination Agreement”) by and among Ambipar Emergency Response, an exempted company incorporated with limited liability in the Cayman Islands (“New PubCo”), Ambipar Merger Sub, an exempted company incorporated with limited liability in the Cayman Islands (“Merger Sub”), Emergência Participações S.A., a corporation ( sociedade anônima sociedade anônima The Company’s board of directors (i) unanimously approved the Business Combination Agreement, the Mergers and the Transaction Agreements (as defined in the Business Combination Agreement) and (ii) unanimously determined to recommend that the shareholders of the Company vote to approve the SPAC Shareholder Matters (as defined in the Business Combination Agreement) and such other actions as contemplated by the Business Combination Agreement (see Note 10). The Company is focused on consummating the agreements entered into in connection to the Business Combination Agreement by submitting the Proposed Business Combination to the Company’s shareholders for their consideration. The Company intends to file a registration statement on Form F-4 (the “Registration Statement”) with the U.S. Securities and Exchange Commission (the “SEC”) which will include preliminary and definitive proxy statements to be distributed to the Company’s shareholders in connection with the Company’s solicitation for proxies for the vote by the Company’s shareholders in connection with the Proposed Business Combination and other matters as described in the Registration Statement, as well as the prospectus relating to the offer of the securities to be issued in connection with the completion of the Proposed Business Combination. After the Registration Statement has been filed and declared effective, the Company will mail a definitive proxy statement and other relevant documents to its shareholders as of the record date established for voting on the Proposed Business Combination. The Company’s shareholders and other interested persons are advised to read, once available, the preliminary proxy statement/prospectus and any amendments thereto and, once available, the definitive proxy statement/prospectus, in connection with the Company’s solicitation of proxies for its special meeting of shareholders to be held to approve, among other things, the Proposed Business Combination, because these documents will contain important information about the Company, Emergencia, and the Proposed Business Combination. Shareholders may also obtain a copy of the preliminary or definitive proxy statement, once available, as well as other documents filed with the SEC regarding the Proposed Business Combination and other documents filed with the SEC by the Company, without charge, at the SEC’s website located at www.sec.gov or by directing a request to: HPX Corp., 1000 N. West Street, Suite 1200, Wilmington, Delaware 19801. For further information, please see our current report on Form 8-K filed with the SEC on July 7, 2022 and Note 10 of these notes to the condensed financial statements included in this quarterly report on Form 10-Q (the “Quarterly Report”). Combination Period Extension As previously reported in our current report on Form 8-K filed with the SEC on July 14, 2022, on July 14, 2022, in connection with its Extraordinary General Meeting held on July 14, 2022 (the “Extraordinary General Meeting”), the Company’s shareholders approved: (1) a special resolution to amend the Amended and Restated Memorandum and Articles of Association of the Company (the “Extension Amendment”) to extend the date by which the Company must (a) consummate a Business Combination, (b) cease its operations except for the purpose of winding up if it fails to complete such Business Combination, and (c) redeem all of the Company’s Class A ordinary shares included as part of the units sold in the Company’s Initial Public Offering from July 20, 2022 to November 20, 2022; and (2) the proposal to extend the date on which Continental Stock Transfer & Trust Company (the “Trustee”) must liquidate the trust account established in connection with the Company’s Initial Public Offering if the Company has not completed its initial Business Combination from July 20, 2022 to November 20, 2022 (the “Trust Amendment” and, together with the Extension Amendment, the “Combination Period Extension”) (see Note 10). For further information, please see our current report on Form 8-K as filed with the SEC on July 14, 2022 and Note 10 of these notes to the condensed financial statements included in this Quarterly Report. Redemption of Class A Ordinary Shares As previously reported in our current report on Form 8-K filed with the SEC on July 14, 2022, on July 14, 2022, in connection with the vote to approve the Combination Period Extension, the holders of 19,472,483 Class A ordinary shares properly exercised their right to redeem their shares for cash at a redemption price of approximately $10.018 per share, for an aggregate redemption amount of approximately $195.1 million, which included approximately $0.4 million of Trust Account earnings, leaving approximately $58.4 million in the Trust Account. As of June 30, 2022, the redemption amount is not required to be classified as a liability as the event occurred subsequent to that date. For further information, please see our current report on Form 8-K as filed with the SEC on July 14, 2022 and Note 10 of these notes to the condensed financial statements included in this Quarterly Report. Company’s Initial Public Offering and Search for a Target The registration statement for the Company’s Initial Public Offering became effective on July 15, 2020. On July 20, 2020, the Company consummated the Initial Public Offering of 25,300,000 units (the “Units” and, with respect to the Class A ordinary shares included in the Units sold, the “Public Shares”), which includes the full exercise by the underwriter of the over-allotment option to purchase an additional 3,300,000 Units, at $10.00 per Unit, generating gross proceeds of $253,000,000 which is described in Note 3. Simultaneously with the closing of the Initial Public Offering, the Company consummated the sale of 7,060,000 warrants (the “Private Placement Warrants”) at a price of $1.00 per Private Placement Warrant in a private placement to HPX Capital Partners LLC, a Delaware limited liability company (the “Sponsor”), generating gross proceeds of $7,060,000, which is described in Note 4. Transaction costs amounted to $14,528,328, consisting of $5,060,000 of underwriting fees, $8,855,000 of deferred underwriting fees and $613,328 of other offering costs, $497,297 of which were allocated to the warrants and charged to expense. Following the closing of the Initial Public Offering on July 20, 2020, an amount of $253,000,000 ($10.00 per Unit) from the net proceeds of the sale of the Units in the Initial Public Offering and the sale of the Private Placement Warrants was placed in a Trust Account (the “Trust Account”) located in the United States and invested in U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act of 1940, as amended (the “Investment Company Act”), with a maturity of 185 days or less, or in any open-ended investment company that holds itself out as a money market fund meeting certain conditions of Rule 2a-7 of the Investment Company Act, as determined by the Company, until the earlier of: (i) the completion of a Business Combination and (ii) the distribution of the funds in the Trust Account to the Company’s shareholders, as described below. The Company’s management has broad discretion with respect to the specific application of the net proceeds of the Initial Public Offering and the sale of the Private Placement Warrants, although substantially all of the net proceeds are intended to be applied generally toward consummating a Business Combination. The New York Stock Exchange rules require that a Business Combination must be with one or more operating businesses or assets with a fair market value equal to at least 80% of the net assets held in the Trust Account (net of amounts disbursed to management for working capital purposes, if permitted, and excluding the amount of any deferred underwriting discount held in trust). The Company will only complete a Business Combination if the post-Business Combination company owns or acquires 50% or more of the issued and outstanding voting securities of the target or otherwise acquires a controlling interest in the target business sufficient for it not to be required to register as an investment company under the Investment Company Act. There is no assurance that the Company will be able to successfully effect a Business Combination, including the Proposed Business Combination. The Company will provide the holders of the Public Shares (the “Public Shareholders”) with the opportunity to redeem all or a portion of their Public Shares upon the completion of a Business Combination, either (i) in connection with a shareholder meeting called to approve a Business Combination or (ii) by means of a tender offer. The decision as to whether the Company will seek shareholder approval of a Business Combination or conduct a tender offer will be made by the Company, solely in its discretion. The Public Shareholders will be entitled to redeem their shares for a pro rata portion of the amount held in the Trust Account (initially $10.00 per share) as of two The Company will proceed with a Business Combination only if the Company has net tangible assets, after payment of the deferred underwriting commission, of at least $5,000,001 upon such completion of a Business Combination and, if the Company seeks shareholder approval, it receives an ordinary resolution under Cayman Islands law approving a Business Combination, which requires the affirmative vote of a majority of the shareholders who attend and vote at a general meeting of the Company. If a shareholder vote is not required and the Company does not decide to hold a shareholder vote for business or other legal reasons, the Company will, pursuant to its Amended and Restated Memorandum and Articles of Association, conduct the redemptions pursuant to the tender offer rules of the SEC, and file tender offer documents containing substantially the same information as would be included in a proxy statement with the SEC prior to completing a Business Combination. If the Company seeks shareholder approval in connection with a Business Combination, the Sponsor and any other holders of the Company’s Class B ordinary shares prior to the Initial Public Offering (the “initial shareholders”) have agreed to vote their Founder Shares (as defined in Note 5) and any Public Shares purchased during or after the Initial Public Offering in favor of approving a Business Combination and to waive their redemption rights with respect to any such shares in connection with a shareholder vote to approve a Business Combination. Additionally, subject to the immediately succeeding paragraph, each Public Shareholder may elect to redeem their Public Shares, without voting, and if they do vote, irrespective of whether they vote for or against a proposed Business Combination. Notwithstanding the foregoing, if the Company seeks shareholder approval of a Business Combination and the Company does not conduct redemptions pursuant to the tender offer rules, a Public Shareholder, together with any affiliate of such shareholder or any other person with whom such shareholder is acting in concert or as a “group” (as defined under Section 13 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), will be restricted from redeeming its shares with respect to more than 15% of the Public Shares without the Company’s prior written consent. The Sponsor has agreed (a) to waive its redemption rights with respect to any Founder Shares and Public Shares held by it in connection with the completion of a Business Combination (and not seek to sell its shares to the Company in any tender offer the Company undertakes in connection with its initial Business Combination) and (b) not to propose an amendment to the Amended and Restated Memorandum of Articles of Association (i) to modify the substance or timing of the Company’s obligation to allow redemption in connection with the Company’s initial Business Combination or to redeem 100% of the Public Shares if the Company does not complete a Business Combination within the Combination Period (as defined below) or (ii) with respect to any other provision relating to shareholders’ rights or pre-initial business combination activity, unless the Company provides the Public Shareholders with the opportunity to redeem their Public Shares in conjunction with any such amendment. The Company initially had until July 20, 2022 to consummate a Business Combination. However, pursuant to the Combination Period Extension mentioned above, the Company now will have until November 20, 2022 to consummate a Business Combination (the “Combination Period”) (see Note 10). However, if the Company has not completed a Business Combination, including the Proposed Business Combination, within the Combination Period, as may be extended from time to time by the Company as a result of a shareholder vote to amend its Amended and Restated Memorandum and Articles of Association (the “Extension Period”), the Company 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 the then-outstanding Public Shares, which redemption will completely extinguish the rights of the Public Shareholders as shareholders (including the right to receive further liquidation distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the Company’s remaining Public Shareholders and its board of directors, liquidate and dissolve, subject in each case to the Company’s obligations under Cayman Islands law to provide for claims of creditors and the requirements of other applicable law. There will be no redemption rights or liquidating distributions with respect to the Founder Shares or the Private Placement Warrants, which will expire worthless if the Company fails to complete a Business Combination within the Combination Period or any Extension Period. The Sponsor has agreed to waive its liquidation rights with respect to the Founder Shares if the Company fails to complete a Business Combination within the Combination Period or any Extension Period. However, if the Sponsor or any of its respective affiliates acquire Public Shares, such Public Shares will be entitled to liquidating distributions from the Trust Account if the Company fails to complete a Business Combination within the Combination Period or any Extension Period. The underwriter has agreed to waive its rights to its deferred underwriting commission (see Note 6) held in the Trust Account in the event the Company does not complete a Business Combination within the Combination Period or any Extension Period and, in such event, such amounts will be included with the other funds held in the Trust Account that will be available to fund the redemption of the Public Shares. In the event of such distribution, it is possible that the per share value of the assets remaining available for distribution will be less than the Initial Public Offering price per Unit ($10.00). In order to protect the amounts held in the Trust Account, the Sponsor has agreed that it will be liable to the Company if and to the extent any claims by a third party (other than the Company’s independent registered public accounting firm) for services rendered or products sold to the Company, or a prospective target business with which the Company has discussed entering into a transaction agreement, reduce the amount of funds in the Trust Account to below (1) $10.00 per Public Share or (2) such lesser amount per Public Share held in the Trust Account as of the date of the liquidation of the Trust Account due to reductions in the value of trust assets, in each case net of the interest which may be withdrawn to pay taxes, except as to any claims by a third party who executed a waiver of any and all rights to seek access to the Trust Account and except as to any claims under the Company’s indemnity of the underwriter of the Initial Public Offering against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the “Securities Act”). In the event that an executed waiver is deemed to be unenforceable against a third party, the Sponsor will not be responsible to the extent of any liability for such third-party claims. The Company will seek to reduce the possibility that the Sponsor will have to indemnify the Trust Account due to claims of creditors by endeavoring to have all vendors, service providers (other than the Company’s independent registered public accounting firm), prospective target businesses or other entities with which the Company does business, execute agreements with the Company waiving any right, title, interest or claim of any kind in or to monies held in the Trust Account. Risks and Uncertainties In February 2022, the Russian Federation and Belarus commenced a military action with the country of Ukraine. As a result, various nations, including the United States, have imposed economic sanctions against the Russian Federation and Belarus. Further, the impact of this action and the related sanctions on the world economy, and the specific impacts on the Company’s financial position, results of operations and its ability to identify and complete an initial business combination are not determinable as of the date of these condensed financial statements. Management continues to evaluate the impact of the COVID-19 pandemic and has concluded that while it is reasonably possible that the virus could have a negative effect on the Company’s financial position, results of its operations and/or search for a target company, the specific impact is not readily determinable as of the date of these condensed financial statements. The condensed financial statements do not include any adjustments that might result from the outcome of these uncertainties. Liquidity As of June 30, 2022, the Company had $778,575 in its operating bank accounts, $253,381,468 in marketable securities held in the Trust Account to be used for a Business Combination or to repurchase or redeem its ordinary shares (see Note 10 for redemptions made in July 2022) in connection therewith and a working capital deficit of $706,193 (which includes a liability for the $700,000 borrowing as described below). As discussed in Note 5, on June 24, 2022, the Company entered into promissory notes with the Sponsor pursuant to which the Sponsor agreed to loan the Company up to an aggregate principal amount of $905,000 (the “Working Capital Note”). As of June 30, 2022 and December 31, 2021, there were $700,000 and $0 outstanding under the Working Capital Note, respectively. Going Concern In connection with the Company’s assessment of going concern considerations in accordance with FASB’s Accounting Standards Codification Subtopic 205-40, “Presentation of Financial Statements—Going Concern,” management has determined that if the Company is unable to raise additional funds to alleviate liquidity needs, obtain approval for another extension of the deadline or complete a Business Combination by November 20, 2022, then the Company will cease all operations except for the purpose of liquidating. The Company intends to complete a Business Combination before the mandatory liquidation date or obtain approval for an extension, however, it is uncertain whether the Company will be able to do so. If a Business Combination is not consummated by this date and an extension not requested by the Sponsor, there will be a mandatory liquidation and subsequent dissolution of the Company. Management has determined that the liquidity condition and the mandatory liquidation, should a Business Combination not occur and an extension is not requested by the Sponsor, and potential subsequent dissolution raises substantial doubt about the Company’s ability to continue as a going concern. No adjustments have been made to the carrying amounts of assets or liabilities should the Company be required to liquidate after November 20, 2022. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X of the SEC. Certain information or footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a complete presentation of financial position, results of operations, or cash flows. In the opinion of management, the accompanying unaudited condensed financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented. The accompanying unaudited condensed financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 as filed with the SEC on April 14, 2022. The accompanying condensed balance sheet as of December 31, 2021 has been derived from the Company’s audited financial statements included in the Form 10-K. The interim results for the three and six months ended June 30, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022 or for any future periods. Emerging Growth Company The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the independent registered public accounting firm attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved. Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. Use of Estimates The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting periods. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. One of the more significant accounting estimates included in these financial statements is the determination of the fair value of the Private Placement Warrants as of June 30, 2022 and December 31, 2021. Such estimates may be subject to change as more current information becomes available and accordingly the actual results could differ significantly from those estimates. Cash and Cash Equivalents The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. The Company did not have any cash equivalents as of June 30, 2022 and December 31, 2021. Marketable Securities Held in Trust Account As of June 30, 2022 and December 31, 2021, all of the assets held in the Trust Account were held in money market funds which invest in U.S. Treasury securities. Offering Costs The Company complies with the requirement of Accounting Standards Codification (“ASC”) 340-10-S99-1. Offering costs consisted of legal, accounting and other expenses incurred through the Initial Public Offering that were directly related to the Initial Public Offering. Offering costs were allocated to the separable financial instruments issued in the Initial Public Offering based on a relative fair value basis, compared to total proceeds received. Offering costs allocated to warrant liabilities were expensed as incurred in the statements of operations. Offering costs associated with the Class A ordinary shares issued were initially charged to temporary equity and remeasured to ordinary shares subject to redemption upon the completion of the Initial Public Offering. Warrant Liabilities The Company accounts for the Public Warrants (as defined in Note 3) and Private Placement Warrants (together, with the Public Warrants, the “Warrants”) in accordance with the guidance contained in ASC 815-40 under which the Warrants do not meet the criteria for equity treatment and must be recorded as liabilities. Accordingly, the Company classifies the Warrants as liabilities at their fair value and adjusts the Warrants to fair value at each reporting period. This liability is subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in our statements of operations. The Warrants for periods where no observable traded price was available are valued using a binomial lattice simulation. For periods subsequent to the detachment of the Public Warrants from the Units, which occurred on September 8, 2020, the Public Warrant quoted market price was used as the fair value as of each relevant date. Class A Ordinary Shares Subject to Possible Redemption The Company accounts for its Class A ordinary shares subject to possible redemption in accordance with the guidance in ASC Topic 480, “Distinguishing Liabilities from Equity.” Class A ordinary shares subject to mandatory redemption are classified as a liability instrument and are measured at fair value. Conditionally redeemable ordinary shares (including ordinary shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) are classified as temporary equity. At all other times, ordinary shares are classified as shareholders’ equity. The Company’s Class A ordinary shares feature certain redemption rights that are considered to be outside of the Company’s control and subject to occurrence of uncertain future events. Accordingly, all Class A ordinary shares subject to possible redemption are presented at redemption value as temporary equity, outside of the shareholders’ deficit section of the Company’s condensed balance sheets. The Company recognizes changes in redemption value immediately as they occur and adjusts the carrying value of redeemable ordinary shares to equal the redemption value at the end of each reporting period. Immediately upon the closing of the Initial Public Offering, the Company recognized the remeasurement from initial book value to initial redemption amount value. The change in the carrying value of redeemable Class A ordinary shares resulted in charges against additional paid-in capital (to the extent available) and accumulated deficit. Subsequent to the initial measurement upon the closing of the Initial Public Offering, the Company recognizes changes in the redemption value that result from earnings on marketable securities held in Trust Account that have not been withdrawn to pay taxes. As of June 30, 2022, the Company has not incurred any taxes or permitted expenses that could be withdrawn from the Trust Account. As of June 30, 2022 and December 31, 2021, the Class A ordinary shares reflected in the condensed balance sheets are reconciled in the following table: Gross proceeds from Initial Public Offering $ 253,000,000 Less: Proceeds allocated to Public Warrants (8,475,500) Class A ordinary shares issuance costs (14,031,031) Plus: Initial remeasurement of carrying value to redemption value 22,506,531 Subsequent remeasurement of carrying value to redemption value 12,211 Total remeasurement of carrying value to redemption value 22,518,742 Class A ordinary shares subject to possible redemption, December 31, 2021 253,037,516 Remeasurement of carrying value to redemption value (343,952) Class A ordinary shares subject to possible redemption, June 30, 2022 $ 253,381,468 During the six months ended June 30, 2022, the Company increased the carrying value of Class A ordinary shares for earnings on marketable securities held in Trust Account by $343,952 . See Notes 1 and 10 for redemptions in connection with the July 14, 2022 vote to approve the Combination Period Extension. Income Taxes The Company accounts for income taxes under ASC Topic 740, “Income Taxes” (“ASC 740”). ASC 740 requires the recognition of deferred tax assets and liabilities for both the expected impact of differences between the financial statements and tax basis of assets and liabilities and for the expected future tax benefit to be derived from tax loss and tax credit carry forwards. ASC 740 additionally requires a valuation allowance to be established when it is more likely than not that all or a portion of deferred tax assets will not be realized. ASC 740 also clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim period, disclosure and transition. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of June 30, 2022 and December 31, 2021. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company is considered an exempted Cayman Islands Company and is presently not subject to income taxes or income tax filing requirements in the Cayman Islands or the United States. As such, the Company’s tax provision was zero for the periods presented. Net (Loss) Income Per Ordinary Share The Company complies with accounting and disclosure requirements of FASB ASC Topic 260, “Earnings Per Share.” The Company has two classes of shares, which are referred to as Class A ordinary shares and Class B ordinary shares. Income and losses are shared pro rata between the two classes of shares. Net (loss) income per ordinary share is computed by dividing net (loss) income by the weighted average number of ordinary shares outstanding for the period. Remeasurement associated with the redeemable Class A ordinary shares is excluded from (loss) income per ordinary share as the redemption value approximates fair value. The calculation of diluted (loss) income per ordinary share does not consider the effect of the Warrants issued in connection with the (i) Initial Public Offering, and (ii) the private placement since the exercise of the Warrants is contingent upon the occurrence of future events. The Warrants are exercisable to purchase 19,710,000 Class A ordinary shares in the aggregate. As of June 30, 2022 and 2021, the Company did not have any other dilutive securities or other contracts that could, potentially, be exercised or converted into ordinary shares and then share in the earnings of the Company. As a result, diluted net (loss) income per ordinary share is the same as basic net (loss) income per ordinary share for the periods presented. The following table reflects the calculation of basic and diluted net (loss) income per ordinary share (in dollars, except share amounts): Three Months Ended Three Months Ended Six Months Ended Six Months Ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Class A Class B Class A Class B Class A Class B Class A Class B Basic and diluted net (loss) income per ordinary share Numerator: Allocation of net (loss) income $ (90,281) $ (22,499) $ (1,463,907) $ (365,977) $ 4,474,966 $ 1,118,742 $ 2,497,063 $ 624,266 Denominator: Basic and diluted weighted average shares outstanding 25,300,000 6,305,000 25,300,000 6,325,000 25,300,000 6,305,000 25,300,000 6,325,000 Basic and diluted net (loss) income per ordinary share $ (0.00) $ (0.00) $ (0.06) $ (0.06) $ 0.18 $ 0.18 $ 0.10 $ 0.10 Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of a cash account in a financial institution which, at times may exceed the Federal Depository Insurance Coverage of $250,000. The Company has not experienced losses on this account and management believes the Company is not exposed to significant risks on such account. Fair Value of Financial Instruments The fair value of the Company’s assets and liabilities, which qualify as financial instruments under ASC Topic 820, “Fair Value Measurement,” approximates the carrying amounts represented in the accompanying condensed balance sheets, primarily due to their short-term nature, except for the Warrants (see Note 9). Recent Accounting Standards In August 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-06, ”Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” (“ASU 2020-06”), which simplifies accounting for convertible instruments by removing major separation models required under current GAAP. ASU 2020-06 removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception and it also simplifies the diluted earnings per share calculation in certain areas. ASU 2020-06 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years, with early adoption permitted. The Company is currently assessing the impact, if any, that ASU 2020-06 would have on its financial position, results of operations or cash flows. Management does not believe that any other recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the accompanying condensed financial statements. |
INITIAL PUBLIC OFFERING
INITIAL PUBLIC OFFERING | 6 Months Ended |
Jun. 30, 2022 | |
INITIAL PUBLIC OFFERING. | |
INITIAL PUBLIC OFFERING | NOTE 3. INITIAL PUBLIC OFFERING Pursuant to the Initial Public Offering on July 20, 2020, the Company sold 25,300,000 Units, which includes the full exercise by the underwriter of its option to purchase an additional 3,300,000 Units, at a purchase price of $10.00 per Unit. Each Unit consists of one Class A ordinary share and one-half of one |
PRIVATE PLACEMENT
PRIVATE PLACEMENT | 6 Months Ended |
Jun. 30, 2022 | |
PRIVATE PLACEMENT. | |
PRIVATE PLACEMENT | NOTE 4. PRIVATE PLACEMENT Simultaneously with the closing of the Initial Public Offering, the Sponsor purchased an aggregate of 7,060,000 Private Placement Warrants at a price of $1.00 per Private Placement Warrant from the Company in a private placement, for an aggregate purchase price of $7,060,000. Each Private Placement Warrant is exercisable for one Class A ordinary share at a price of $11.50 per share, subject to adjustment (see Note 8). Proceeds from the sale of the Private Placement Warrants were added to the net proceeds from the Initial Public Offering held in the Trust Account. If the Company does not complete a Business Combination within the Combination Period or any Extension Period, the proceeds from the sale of the Private Placement Warrants held in the Trust Account will be used to fund the redemption of the Public Shares (subject to the requirements of applicable law) and the Private Placement Warrants will expire worthless. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2022 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | NOTE 5. RELATED PARTY TRANSACTIONS Founder Shares On April 8, 2020, the Sponsor purchased 5,750,000 of the Company’s Class B ordinary shares (the “Founder Shares”) for an aggregate consideration of $25,000. On June 25, 2020, the Sponsor transferred 20,000 Founder Shares to each of its independent director nominees at their original per-share purchase price. On July 15, 2020, the Company effected a share capitalization resulting in the initial shareholders holding an aggregate of 6,325,000 Founder Shares. However, on December 3, 2020, Fabio Mourão resigned as a director of our board of directors and forfeited 20,000 Founder Shares to the Company for no consideration and, as a result, since then the initial shareholders hold an aggregate of 6,305,000 Founder Shares. All share and per-share amounts have been restated to reflect the share capitalization. The Founder Shares included an aggregate of up to 825,000 shares subject to forfeiture by the Sponsor depending on the extent to which the underwriter’s over-allotment option was exercised, so that the Founder Shares would equal 20% of the Company’s issued and outstanding shares after the Initial Public Offering. As a result of the underwriter’s election to fully exercise its over-allotment option on July 16, 2020, no Founder Shares are currently subject to forfeiture. On July 23, 2021, a former director and a newly appointed director entered into a Securities Assignment Agreement (the “Securities Assignment Agreement”). The terms of the Securities Assignment Agreement specified that the former director transfer the 20,000 Founder Shares granted to him on June 25, 2020 to the newly appointed director, which the Company has treated as the cancellation of an existing award and the issuance of a new award. The transfer of the Founders Shares to the Company’s directors and director nominees is in the scope of FASB ASC Topic 718, “Compensation-Stock Compensation” (“ASC 718”). Under ASC 718, stock-based compensation associated with equity-classified awards is measured at fair value upon the grant date. The Founder Shares were effectively transferred subject to a performance condition (i.e., the occurrence of a Business Combination). Compensation expense related to the Founder Shares is recognized only when the performance condition is probable of occurrence under the applicable accounting literature in this circumstance (i.e., upon consummation of a Business Combination). Stock-based compensation would be recognized at the date a Business Combination is considered probable (i.e., upon consummation of a Business Combination) in an amount equal to the number of Founders Shares times the grant date fair value per share (unless subsequently modified). The Sponsor (including the directors) has agreed, subject to limited exceptions, not to transfer, assign or sell any of its Founder Shares until the earlier of: (A) one year after the completion of a Business Combination and (B) subsequent to a Business Combination, (x) if the last reported sale price of the Class A ordinary shares equals or exceeds $12.00 per share (as adjusted for share sub-divisions, share dividends, rights issuances, consolidations, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after a Business Combination, or (y) the date on which the Company completes a liquidation, merger, amalgamation, share exchange, reorganization or other similar transaction that results in all of the Company’s shareholders having the right to exchange their Class A ordinary shares for cash, securities or other property. Administrative Services Agreement The Company entered into an agreement whereby, commencing on July 16, 2020, the Company will pay the Sponsor up to $10,000 per month for office space, administrative and support services. Upon completion of a Business Combination or its liquidation, the Company will cease paying these monthly fees. For the three and six months ended June 30, 2022, the Company incurred $30,000 and $60,000 in fees for these services, respectively. For the three and six months ended June 30, 2021, the Company incurred $30,000 and $60,000, respectively, in fees for these services. At June 30, 2022 and December 31, 2021, $235,000 and $175,000 are included in accrued expenses for these services, respectively. Related Party Loans In order to finance transaction costs in connection with a Business Combination, the Sponsor or an affiliate of the Sponsor, or certain of the Company’s officers and directors may, but are not obligated to, loan the Company funds as may be required (“Working Capital Loans”). Such Working Capital Loans would be evidenced by promissory notes. The notes may be repaid upon completion of a Business Combination, without interest, or, at the lender’s discretion, up to $1,500,000 of notes may be converted upon completion of a Business Combination into warrants at a price of $1.00 per warrant. Such warrants would be identical to the Private Placement Warrants. In the event that a Business Combination does not close, the Company may use a portion of proceeds held outside the Trust Account to repay the Working Capital Loans but no proceeds held in the Trust Account would be used to repay the Working Capital Loans. On June 24, 2022, the Company entered into promissory notes with the Sponsor pursuant to which the Sponsor agreed to loan the Company up to an aggregate principal amount of $905,000 (the “Working Capital Note”). The Working Capital Note is non-interest bearing and payable on the earlier of the date on which the Company consummates a Business Combination or the date that the winding up of the Company is effective. If the Company does not consummate a Business Combination, all amounts loaned to the Company in connection with these loans will be forgiven except to the extent that the Company has funds available to it outside of its Trust Account; however, no proceeds from the Trust Account may be used for such repayment. The Working Capital Note is not convertible. As of June 30, 2022 and December 31, 2021, there were $700,000 and $0 outstanding under the Working Capital Note, respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2022 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 6. COMMITMENTS AND CONTINGENCIES Registration Rights Pursuant to a registration rights agreement entered into on July 15, 2020, the holders of the Founder Shares, Private Placement Warrants and any warrants that may be issued on conversion of Working Capital Loans (and any Class A ordinary shares issuable upon the exercise of the Private Placement Warrants or warrants issued upon conversion of the Working Capital Loans and upon conversion of the Founder Shares) are entitled to registration rights requiring the Company to register such securities for resale (in the case of the Founder Shares, only after conversion to the Company’s Class A ordinary shares). The holders of these securities will be entitled to make up to three demands, excluding short form registration demands, that the Company register such securities. In addition, the holders have certain “piggy-back” registration rights with respect to registration statements filed subsequent to the completion of a Business Combination and rights to require the Company to register for resale such securities pursuant to Rule 415 under the Securities Act. However, the registration rights agreement provides that the Company will not be required to effect or permit any registration or cause any registration statement to become effective until termination of the applicable lock-up period. The Company will bear the expenses incurred in connection with the filing of any such registration statements. Underwriting Agreement The underwriter is entitled to a deferred fee of $0.35 per Unit, or $8,855,000 in the aggregate. The deferred fee will become payable to the underwriter from the amounts held in the Trust Account solely in the event that the Company completes a Business Combination, subject to the terms of the underwriting agreement. Of such deferred fee amount, up to approximately $0.175 per Unit, or up to $4,427,500, may be paid to third parties who did not participate in the Initial Public Offering (but who are members of FINRA or regulated broker-dealers) that assist the Company in consummating a Business Combination. The election to make such payments to third parties will be solely at the discretion of the Company’s management team, and such third parties will be selected by the Company’s management team in its sole and absolute discretion. Consulting Arrangements The Company has arrangements with a consultant to provide services to the Company relating to market and industry analyses, assistance with due diligence, and financial modeling and valuation of potential targets. The Company agreed to pay the service provider a fee of 6,600 BRL per month (approximately $1,200 per month). For the six months ended June 30, 2022, the Company incurred $8,803 of consulting fees, of which $1,400 is included within accounts payable and accrued expenses in the condensed balance sheet as of June 30, 2022. For the six months ended June 30, 2021, the Company incurred and paid $7,811 of consulting fees. Restricted Stock Unit Award In July 2021, pursuant to a Director Restricted Stock Unit Award Agreement, dated July 23, 2021, between the Company and a director, the Company agreed to grant 20,000 restricted stock units (“RSUs”) to a director. The RSUs will vest upon the consummation of such Business Combination and represent 20,000 non-redeemable Class A ordinary shares of the Company that will settle on a date as soon as practicable following vesting but in no event more than 30 days after vesting. Issuance of the shares underlying the RSUs are also subject to the future approval of an equity incentive plan. The RSUs to be granted by the Company are in the scope of FASB ASC Topic 718, “Compensation-Stock Compensation” (“ASC 718”). Under ASC 718, stock-based compensation associated with equity-classified awards is measured at fair value upon the grant date. The RSUs to be granted are subject to a performance condition (i.e., the occurrence of a Business Combination). Compensation expense related to the RSUs is recognized only when the performance condition is probable of occurrence under the applicable accounting literature in this circumstance. As of June 30, 2022 and December 31, 2021, the Company did not have a shareholder approved equity plan and also determined that a Business Combination is not considered probable, therefore, no stock-based compensation expense has been recognized. Stock-based compensation would be recognized at the date a Business Combination is considered probable (i.e., upon consummation of a Business Combination) in an amount equal to the number of RSUs times the grant date fair value per share (unless subsequently modified). Contingent Fee Arrangement On June 27, 2022, the Company entered into an agreement with a vendor to provide advisory services in connection with a potential Business Combination. The agreement calls for the Company to pay a fee of $2,000,000 upon the closing of a business combination. If the Business Combination is not consummated for any reason, no fee is payable under this agreement. |
SHAREHOLDERS' DEFICIT
SHAREHOLDERS' DEFICIT | 6 Months Ended |
Jun. 30, 2022 | |
SHAREHOLDERS' DEFICIT | |
SHAREHOLDERS' DEFICIT | NOTE 7. SHAREHOLDERS’ DEFICIT Preference Shares Class A Ordinary Shares Class B Ordinary Shares Holders of Class A ordinary shares and holders of Class B ordinary shares will vote together as a single class on all matters submitted to a vote of the Company’s shareholders except as otherwise required by law. The Class B ordinary shares will automatically convert into Class A ordinary shares on the first business day following the completion of a Business Combination, or earlier at the option of the holder, on a one-for-one basis, subject to adjustment. In the case that additional Class A ordinary shares, or equity-linked securities, are issued or deemed issued in excess of the amounts issued in the Initial Public Offering and related to the closing of a Business Combination, the ratio at which Class B ordinary shares will convert into Class A ordinary shares will be adjusted (subject to waiver by holders of a majority of the Class B ordinary shares) so that the number of Class A ordinary shares issuable upon conversion of all Class B Shares will equal, in the aggregate, on an as-converted basis, 20% of the sum of the ordinary shares issued and outstanding upon completion of the Initial Public Offering plus the number of Class A ordinary shares and equity-linked securities issued or deemed issued in connection with a Business Combination (net of redemptions), excluding any Class A ordinary shares or equity-linked securities issued, or to be issued, to any seller in a Business Combination: provided that such conversion of Class B ordinary shares will never occur on a less than one-for-one basis. |
WARRANTS
WARRANTS | 6 Months Ended |
Jun. 30, 2022 | |
WARRANTS | |
WARRANTS | NOTE 8. WARRANTS As of June 30, 2022 and December 31, 2021, there were 12,650,000 Public Warrants outstanding, with each Public Warrant enabling the holder to purchase one Class A ordinary share at an exercise price of $11.50 per share. Public Warrants may only be exercised for a whole number of shares. No fractional shares will be issued upon exercise of the Public Warrants. The Public Warrants will become exercisable on the later of (a) 30 days after the completion of a Business Combination and (b) 12 months from the closing of the Initial Public Offering. The Public Warrants will expire five years from the completion of a Business Combination or earlier upon redemption or liquidation. The Company will not be obligated to deliver any Class A ordinary shares pursuant to the exercise of a Public Warrant and will have no obligation to settle such Public Warrant exercise unless a registration statement under the Securities Act covering the issuance of the Class A ordinary shares issuable upon exercise of the Public Warrants is then effective and a prospectus relating thereto is current, subject to the Company satisfying its obligations with respect to registration. No Public Warrant will be exercisable for cash or on a cashless basis, and the Company will not be obligated to issue any shares to holders seeking to exercise their Public Warrants, unless the issuance of the shares upon such exercise is registered or qualified under the securities laws of the state of the exercising holder, or an exemption from registration is available. The Company has agreed that as soon as practicable, but in no event later than 15 business days, after the closing of a Business Combination, it will use its commercially reasonable efforts to file with the SEC a registration statement registering the issuance, under the Securities Act, of the Class A ordinary shares issuable upon exercise of the Public Warrants. The Company will use it commercially reasonable efforts to cause the same to become effective within 60 business days after the closing of a Business Combination and to maintain the effectiveness of such registration statement, and a current prospectus relating thereto, until the expiration of the Public Warrants in accordance with the provisions of the warrant agreement. Notwithstanding the above, if the Class A ordinary shares are, at the time of any exercise of a Public Warrant, not listed on a national securities exchange such that they satisfy the definition of a “covered security” under Section 18(b)(1) of the Securities Act, the Company may, at its option, require holders of Public Warrants who exercise their Public Warrants to do so on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act and, in the event the Company so elects, the Company will not be required to file or maintain in effect a registration statement, but will use its commercially reasonable efforts to qualify the shares under applicable blue sky laws to the extent an exemption is not available. Redemption of warrants when the price per Class A ordinary share equals or exceeds $18.00 Once the Public Warrants become exercisable, the Company may redeem the Public Warrants: ● in whole and not in part; ● at a price of $0.01 per Public Warrant; ● upon not less than 30 days ’ prior written notice of redemption to each warrant holder and ● if, and only if, the reported last sale price of the Class A ordinary shares for any 20 trading days within a 30- trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders (the “Reference Value”) equals or exceeds $18.00 per share (as adjusted). Redemption of warrants when the price per Class A ordinary share equals or exceeds $10.00 ● in whole and not in part; ● at $0.10 per warrant upon a minimum of 30 days ’ prior written notice of redemption provided that holders will be able to exercise their warrants on a cashless basis prior to redemption and receive that number of shares, based on the redemption date and the fair market value of the Class A ordinary shares; ● if, and only if, the Reference Value equals or exceeds $10.00 per share (as adjusted); and ● if the Reference Value is less than $18.00 per share (as adjusted), the Private Placement Warrants must also be concurrently called for redemption on the same terms as the outstanding Public Warrants, as described above. If and when the Public Warrants become redeemable by the Company, the Company may exercise its redemption right even if it is unable to register or qualify the underlying securities for sale under all applicable state securities laws. The exercise price and number of ordinary shares issuable upon exercise of the Public Warrants may be adjusted in certain circumstances including in the event of a share dividend, extraordinary dividend or recapitalization, reorganization, merger or consolidation. However, except as described below, the Public Warrants will not be adjusted for issuances of ordinary shares at a price below its exercise price. Additionally, in no event will the Company be required to net cash settle the Public Warrants. If the Company is unable to complete a Business Combination within the Combination Period or any Extension Period and the Company liquidates the funds held in the Trust Account, holders of Public Warrants will not receive any of such funds with respect to their Public Warrants, nor will they receive any distribution from the Company’s assets held outside of the Trust Account with respect to such Public Warrants. Accordingly, the Public Warrants may expire worthless. In addition, if (x) the Company issues additional Class A ordinary shares or equity-linked securities for capital raising purposes in connection with the closing of a Business Combination at an issue price or effective issue price of less than $9.20 per Class A ordinary share (with such issue price or effective issue price to be determined in good faith by the Company’s board of directors, and in the case of any such issuance to the Sponsor or its affiliates, without taking into account any Founder Shares held by the Sponsor or such affiliates, as applicable, prior to such issuance) (the “Newly Issued Price”), (y) the aggregate gross proceeds from such issuances represent more than 60% of the total equity proceeds, and interest thereon, available for the funding of a Business Combination on the date of the completion of a Business Combination (net of redemptions), and (z) the volume weighted average trading price of the Company’s ordinary shares during the 20 trading day period starting on the trading day prior to the day on which the Company consummates a Business Combination (such price, the “Market Value”) is below $9.20 per share, the exercise price of the Public Warrants will be adjusted (to the nearest cent) to be equal to 115% of the higher of the Market Value and the Newly Issued Price, the $18.00 per share redemption trigger price described above will be adjusted (to the nearest cent) to be equal to 180% of the higher of the Market Value and the Newly Issued Price, and the $10.00 per share redemption trigger price described above will be adjusted (to the nearest cent) to be equal to the higher of the Market Value and the Newly Issued Price. As of June 30, 2022 and December 31, 2021, there were 7,060,000 Private Placement Warrants outstanding with each Private Placement Warrant exercisable for one Class A ordinary share at a price of $11.50 per share. The Private Placement Warrants are identical to the Public Warrants underlying the Units sold in the Initial Public Offering, except that the Private Placement Warrants and the Class A ordinary shares issuable upon the exercise of the Private Placement Warrants will not be transferable, assignable or salable until 30 days after the completion of a Business Combination, subject to certain limited exceptions. Additionally, the Private Placement Warrants will be exercisable on a cashless basis and be non-redeemable, except as described above, so long as they are held by the initial purchasers or their permitted transferees. If the Private Placement Warrants are held by someone other than the initial purchasers or their permitted transferees, the Private Placement Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2022 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | NOTE 9. FAIR VALUE MEASUREMENTS The Company follows the guidance in ASC Topic 820 for its financial assets and liabilities that are re-measured and reported at fair value at each reporting period, and non-financial assets and liabilities that are re-measured and reported at fair value at least annually. The fair value of the Company’s financial assets and liabilities reflects management’s estimate of amounts that the Company would have received in connection with the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal assumptions about how market participants would price assets and liabilities). The following fair value hierarchy is used to classify assets and liabilities based on the observable inputs and unobservable inputs used in order to value the assets and liabilities: 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. The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021, and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value: December 31, June 30, Description Level 2021 Level 2022 Assets: Marketable securities held in Trust Account 1 $ 253,037,516 1 $ 253,381,468 Liabilities: Warrant Liability – Public Warrants 1 $ 6,775,340 1 $ 1,010,735 Warrant Liability – Private Placement Warrants 3 $ 3,781,336 2 $ 564,094 The Warrants were accounted for as liabilities in accordance with ASC 815-40. The warrant liabilities are measured at fair value at inception and on a recurring basis, with changes in fair value presented in the condensed statements of operations. The Private Placement Warrants were initially valued using a binomial lattice model, which is considered to be a Level 3 fair value measurement. The binomial lattice model’s primary unobservable input utilized in determining the fair value of the Private Placement Warrants is the expected volatility of the ordinary shares. The expected volatility as of the Initial Public Offering date was derived from observable public warrant pricing on comparable ‘blank-check’ companies without an identified target. The expected volatility as of subsequent valuation dates was implied from the Company’s own Public Warrant pricing. Beginning on March 31, 2022 and as of June 30, 2022, the Private Placement Warrants are classified as Level 2 due to the use of a quoted price in an active market for a similar liability. The measurement of the Public Warrants after the detachment of the Public Warrants from the Units on September 8, 2020, is classified as Level 1 due to the use of an observable market quote in an active market. For periods subsequent to the detachment of the Public Warrants from the Units, the close price of the Public Warrant on the New York Stock Exchange was used as the fair value of the Warrants as of each relevant date. The following table presents the quantitative information regarding Level 3 fair value measurements for the Private Placement Warrants. December 31, 2021 Exercise price $ 11.50 Share price $ 9.87 Volatility 12.3 % Term 5.00 Risk-free rate 1.10 % Dividend yield 0.00 The following table presents the changes in the fair value of Level 3 warrant liabilities as of June 30, 2022 and December 31, 2021: Private Placement Fair value as of December 31, 2021 $ 3,781,336 Change in fair value (2,498,534) Transfer to Level 2 (1,282,802) Fair value as of June 30, 2022 $ — Transfers to/from Levels 1, 2 and 3 are recognized at the end of the reporting period in which a change in valuation technique or methodology occurs. There were no transfers in or out of Level 3 for the year ended December 31, 2021. Transfers from Level 3 to Level 2 amounted to $1,282,802 for the six months ended June 30, 2022. There were no transfers in or out of Level 2 for the three months ended June 30, 2022. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2022 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 10. SUBSEQUENT EVENTS The Company evaluated subsequent events and transactions that occurred after the balance sheet date up to the date that the financial statements were issued. Other than outlined below, the Company did not identify any subsequent events that would have required adjustment or disclosure in the financial statements. Proposed Business Combination As previously reported in our current report on Form 8-K filed with the SEC on July 7, 2022, on July 5, 2022, the Company entered into the Business Combination Agreement by and among New PubCo, Merger Sub, Emergencia, Ambipar, and the Company. Emergencia is a leading environmental and industrial service provider with a diversified client base in logistics, chemical, oil and gas, mining and industrial sectors in Brazil and globally. Pursuant to the Business Combination Agreement, the parties have agreed that, on the terms and subject to the conditions set forth in the Business Combination Agreement, (i) at least one business day before the Closing (as defined in the Business Combination Agreement), Ambipar will contribute all of the issued and outstanding equity of Emergencia into Merger Sub in exchange for ordinary shares of Merger Sub and (ii) on the Closing Date (as defined in the Business Combination Agreement), substantially concurrently with the closing of the PIPE Financing, and the Ambipar Financing, and in any case prior to the Second Merger (as defined below), (A) the Company shall be merged with and into New PubCo (the “First Merger”), with New PubCo as the surviving entity, and (B) immediately following the First Merger, Merger Sub shall be merged with and into New PubCo (the “Second Merger”), with New PubCo as the surviving entity. Concurrently with the execution and delivery of the Business Combination Agreement, (i) certain investors and Opportunity Agro Fundo de Investimento em Participações Multiestratégia Investimento no Exterior (the “PIPE Investors”) entered into share subscription agreements pursuant to which the PIPE Investors committed to subscribe for and purchase 11,150,000 New PubCo Class A Ordinary Shares (at $10.00 per share) (the “PIPE Financing”); and (ii) Ambipar entered into a share subscription agreement, pursuant to which Ambipar committed to subscribe for and purchase 5,050,000 New PubCo Class B Ordinary Shares (at $10.00 per share) (the “Ambipar PIPE Financing”). For further information, please see our current report on Form 8-K filed with the SEC on July 7, 2022 and Note 1 of these notes to the condensed financial statements included this Quarterly Report. Combination Period Extension As previously reported in our current report on Form 8-K as filed with the SEC on July 14, 2022, on July 14, 2022, in connection with the Extraordinary General Meeting, the Company’s shareholders approved the Combination Period Extension. As a result, on July 14, 2022, the Company (i) amended the Amended and Restated Memorandum and Articles of Association of the Company to extend the date before which the Company must complete a Business Combination from July 20, 2022 to November 20, 2022 and (ii) entered into Amendment No. 1 to the Investment Management Trust Agreement, dated as of July 14, 2020, with the Trustee to extend the date on which the Trustee must liquidate the Trust Account established in connection with the Company’s Initial Public Offering if the Company has not completed its initial Business Combination from July 20, 2022 to November 20, 2022. For further information, please see our current report on Form 8-K as filed with the SEC on July 14, 2022 and Note 1 of these notes to the condensed financial statements included in this Quarterly Report. Redemption of Class A Ordinary Shares As previously reported in our current report on Form 8-K as filed with the SEC on July 14, 2022, on July 14, 2022, in connection with the vote to approve the Combination Period Extension, the holders of 19,472,483 Class A ordinary shares properly exercised their right to redeem their shares for cash at a redemption price of approximately $10.018 per share, for an aggregate redemption amount of approximately $195.1 million, which included approximately $0.4 million of Trust Account earnings, leaving approximately $58.4 million in the Trust Account. As of June 30, 2022, the redemption amount is not required to be classified as a liability as the event occurred subsequent to that date. For further information, please see our current report on Form 8-K as filed with the SEC on July 14, 2022 and Note 1 of these notes to the condensed financial statements included in this Quarterly Report. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X of the SEC. Certain information or footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a complete presentation of financial position, results of operations, or cash flows. In the opinion of management, the accompanying unaudited condensed financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented. The accompanying unaudited condensed financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 as filed with the SEC on April 14, 2022. The accompanying condensed balance sheet as of December 31, 2021 has been derived from the Company’s audited financial statements included in the Form 10-K. The interim results for the three and six months ended June 30, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022 or for any future periods. |
Emerging Growth Company | Emerging Growth Company The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the independent registered public accounting firm attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved. Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. |
Use of Estimates | Use of Estimates The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting periods. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. One of the more significant accounting estimates included in these financial statements is the determination of the fair value of the Private Placement Warrants as of June 30, 2022 and December 31, 2021. Such estimates may be subject to change as more current information becomes available and accordingly the actual results could differ significantly from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. The Company did not have any cash equivalents as of June 30, 2022 and December 31, 2021. |
Marketable Securities Held in Trust Account | Marketable Securities Held in Trust Account As of June 30, 2022 and December 31, 2021, all of the assets held in the Trust Account were held in money market funds which invest in U.S. Treasury securities. |
Offering Costs | Offering Costs The Company complies with the requirement of Accounting Standards Codification (“ASC”) 340-10-S99-1. Offering costs consisted of legal, accounting and other expenses incurred through the Initial Public Offering that were directly related to the Initial Public Offering. Offering costs were allocated to the separable financial instruments issued in the Initial Public Offering based on a relative fair value basis, compared to total proceeds received. Offering costs allocated to warrant liabilities were expensed as incurred in the statements of operations. Offering costs associated with the Class A ordinary shares issued were initially charged to temporary equity and remeasured to ordinary shares subject to redemption upon the completion of the Initial Public Offering. |
Warrant Liabilities | Warrant Liabilities The Company accounts for the Public Warrants (as defined in Note 3) and Private Placement Warrants (together, with the Public Warrants, the “Warrants”) in accordance with the guidance contained in ASC 815-40 under which the Warrants do not meet the criteria for equity treatment and must be recorded as liabilities. Accordingly, the Company classifies the Warrants as liabilities at their fair value and adjusts the Warrants to fair value at each reporting period. This liability is subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in our statements of operations. The Warrants for periods where no observable traded price was available are valued using a binomial lattice simulation. For periods subsequent to the detachment of the Public Warrants from the Units, which occurred on September 8, 2020, the Public Warrant quoted market price was used as the fair value as of each relevant date. |
Class A Ordinary Shares Subject to Possible Redemption | Class A Ordinary Shares Subject to Possible Redemption The Company accounts for its Class A ordinary shares subject to possible redemption in accordance with the guidance in ASC Topic 480, “Distinguishing Liabilities from Equity.” Class A ordinary shares subject to mandatory redemption are classified as a liability instrument and are measured at fair value. Conditionally redeemable ordinary shares (including ordinary shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) are classified as temporary equity. At all other times, ordinary shares are classified as shareholders’ equity. The Company’s Class A ordinary shares feature certain redemption rights that are considered to be outside of the Company’s control and subject to occurrence of uncertain future events. Accordingly, all Class A ordinary shares subject to possible redemption are presented at redemption value as temporary equity, outside of the shareholders’ deficit section of the Company’s condensed balance sheets. The Company recognizes changes in redemption value immediately as they occur and adjusts the carrying value of redeemable ordinary shares to equal the redemption value at the end of each reporting period. Immediately upon the closing of the Initial Public Offering, the Company recognized the remeasurement from initial book value to initial redemption amount value. The change in the carrying value of redeemable Class A ordinary shares resulted in charges against additional paid-in capital (to the extent available) and accumulated deficit. Subsequent to the initial measurement upon the closing of the Initial Public Offering, the Company recognizes changes in the redemption value that result from earnings on marketable securities held in Trust Account that have not been withdrawn to pay taxes. As of June 30, 2022, the Company has not incurred any taxes or permitted expenses that could be withdrawn from the Trust Account. As of June 30, 2022 and December 31, 2021, the Class A ordinary shares reflected in the condensed balance sheets are reconciled in the following table: Gross proceeds from Initial Public Offering $ 253,000,000 Less: Proceeds allocated to Public Warrants (8,475,500) Class A ordinary shares issuance costs (14,031,031) Plus: Initial remeasurement of carrying value to redemption value 22,506,531 Subsequent remeasurement of carrying value to redemption value 12,211 Total remeasurement of carrying value to redemption value 22,518,742 Class A ordinary shares subject to possible redemption, December 31, 2021 253,037,516 Remeasurement of carrying value to redemption value (343,952) Class A ordinary shares subject to possible redemption, June 30, 2022 $ 253,381,468 During the six months ended June 30, 2022, the Company increased the carrying value of Class A ordinary shares for earnings on marketable securities held in Trust Account by $343,952 . See Notes 1 and 10 for redemptions in connection with the July 14, 2022 vote to approve the Combination Period Extension. Income Taxes The Company accounts for income taxes under ASC Topic 740, “Income Taxes” (“ASC 740”). ASC 740 requires the recognition of deferred tax assets and liabilities for both the expected impact of differences between the financial statements and tax basis of assets and liabilities and for the expected future tax benefit to be derived from tax loss and tax credit carry forwards. ASC 740 additionally requires a valuation allowance to be established when it is more likely than not that all or a portion of deferred tax assets will not be realized. ASC 740 also clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim period, disclosure and transition. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of June 30, 2022 and December 31, 2021. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company is considered an exempted Cayman Islands Company and is presently not subject to income taxes or income tax filing requirements in the Cayman Islands or the United States. As such, the Company’s tax provision was zero for the periods presented. |
Income Taxes | During the six months ended June 30, 2022, the Company increased the carrying value of Class A ordinary shares for earnings on marketable securities held in Trust Account by $343,952 . See Notes 1 and 10 for redemptions in connection with the July 14, 2022 vote to approve the Combination Period Extension. |
Net (Loss) Income Per Ordinary Share | Net (Loss) Income Per Ordinary Share The Company complies with accounting and disclosure requirements of FASB ASC Topic 260, “Earnings Per Share.” The Company has two classes of shares, which are referred to as Class A ordinary shares and Class B ordinary shares. Income and losses are shared pro rata between the two classes of shares. Net (loss) income per ordinary share is computed by dividing net (loss) income by the weighted average number of ordinary shares outstanding for the period. Remeasurement associated with the redeemable Class A ordinary shares is excluded from (loss) income per ordinary share as the redemption value approximates fair value. The calculation of diluted (loss) income per ordinary share does not consider the effect of the Warrants issued in connection with the (i) Initial Public Offering, and (ii) the private placement since the exercise of the Warrants is contingent upon the occurrence of future events. The Warrants are exercisable to purchase 19,710,000 Class A ordinary shares in the aggregate. As of June 30, 2022 and 2021, the Company did not have any other dilutive securities or other contracts that could, potentially, be exercised or converted into ordinary shares and then share in the earnings of the Company. As a result, diluted net (loss) income per ordinary share is the same as basic net (loss) income per ordinary share for the periods presented. The following table reflects the calculation of basic and diluted net (loss) income per ordinary share (in dollars, except share amounts): Three Months Ended Three Months Ended Six Months Ended Six Months Ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Class A Class B Class A Class B Class A Class B Class A Class B Basic and diluted net (loss) income per ordinary share Numerator: Allocation of net (loss) income $ (90,281) $ (22,499) $ (1,463,907) $ (365,977) $ 4,474,966 $ 1,118,742 $ 2,497,063 $ 624,266 Denominator: Basic and diluted weighted average shares outstanding 25,300,000 6,305,000 25,300,000 6,325,000 25,300,000 6,305,000 25,300,000 6,325,000 Basic and diluted net (loss) income per ordinary share $ (0.00) $ (0.00) $ (0.06) $ (0.06) $ 0.18 $ 0.18 $ 0.10 $ 0.10 |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of a cash account in a financial institution which, at times may exceed the Federal Depository Insurance Coverage of $250,000. The Company has not experienced losses on this account and management believes the Company is not exposed to significant risks on such account. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair value of the Company’s assets and liabilities, which qualify as financial instruments under ASC Topic 820, “Fair Value Measurement,” approximates the carrying amounts represented in the accompanying condensed balance sheets, primarily due to their short-term nature, except for the Warrants (see Note 9). |
Recent Accounting Standards | Recent Accounting Standards In August 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-06, ”Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” (“ASU 2020-06”), which simplifies accounting for convertible instruments by removing major separation models required under current GAAP. ASU 2020-06 removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception and it also simplifies the diluted earnings per share calculation in certain areas. ASU 2020-06 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years, with early adoption permitted. The Company is currently assessing the impact, if any, that ASU 2020-06 would have on its financial position, results of operations or cash flows. Management does not believe that any other recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the accompanying condensed financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of basic and diluted loss per ordinary share | The following table reflects the calculation of basic and diluted net (loss) income per ordinary share (in dollars, except share amounts): Three Months Ended Three Months Ended Six Months Ended Six Months Ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Class A Class B Class A Class B Class A Class B Class A Class B Basic and diluted net (loss) income per ordinary share Numerator: Allocation of net (loss) income $ (90,281) $ (22,499) $ (1,463,907) $ (365,977) $ 4,474,966 $ 1,118,742 $ 2,497,063 $ 624,266 Denominator: Basic and diluted weighted average shares outstanding 25,300,000 6,305,000 25,300,000 6,325,000 25,300,000 6,305,000 25,300,000 6,325,000 Basic and diluted net (loss) income per ordinary share $ (0.00) $ (0.00) $ (0.06) $ (0.06) $ 0.18 $ 0.18 $ 0.10 $ 0.10 |
Summary of reconciliation of Class A common stock subject to possible redemption | As of June 30, 2022 and December 31, 2021, the Class A ordinary shares reflected in the condensed balance sheets are reconciled in the following table: Gross proceeds from Initial Public Offering $ 253,000,000 Less: Proceeds allocated to Public Warrants (8,475,500) Class A ordinary shares issuance costs (14,031,031) Plus: Initial remeasurement of carrying value to redemption value 22,506,531 Subsequent remeasurement of carrying value to redemption value 12,211 Total remeasurement of carrying value to redemption value 22,518,742 Class A ordinary shares subject to possible redemption, December 31, 2021 253,037,516 Remeasurement of carrying value to redemption value (343,952) Class A ordinary shares subject to possible redemption, June 30, 2022 $ 253,381,468 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
FAIR VALUE MEASUREMENTS | |
Schedule Company's assets that are measured at fair value on a recurring basis | December 31, June 30, Description Level 2021 Level 2022 Assets: Marketable securities held in Trust Account 1 $ 253,037,516 1 $ 253,381,468 Liabilities: Warrant Liability – Public Warrants 1 $ 6,775,340 1 $ 1,010,735 Warrant Liability – Private Placement Warrants 3 $ 3,781,336 2 $ 564,094 |
Schedule of quantitative information regarding Level 3 fair value measurements | The following table presents the quantitative information regarding Level 3 fair value measurements for the Private Placement Warrants. December 31, 2021 Exercise price $ 11.50 Share price $ 9.87 Volatility 12.3 % Term 5.00 Risk-free rate 1.10 % Dividend yield 0.00 |
Schedule of changes in the fair value of Level 3 warrant liabilities | The following table presents the changes in the fair value of Level 3 warrant liabilities as of June 30, 2022 and December 31, 2021: Private Placement Fair value as of December 31, 2021 $ 3,781,336 Change in fair value (2,498,534) Transfer to Level 2 (1,282,802) Fair value as of June 30, 2022 $ — |
DESCRIPTION OF ORGANIZATION A_2
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS (Details) | 6 Months Ended | ||||
Jul. 14, 2022 USD ($) $ / shares shares | Jul. 20, 2020 USD ($) $ / shares shares | Jun. 30, 2022 USD ($) D $ / shares shares | Jun. 24, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Subsidiary, Sale of Stock [Line Items] | |||||
Offering proceeds held in trust account | $ 253,000,000 | ||||
Threshold percentage of outstanding voting securities of the target to be acquired by post-transaction company to complete business combination | 50% | ||||
Redemption of shares calculated based on business days prior to consummation of business combination (in days) | 2 days | ||||
Minimum net tangible assets to be held to proceed with the Business Combination | $ 5,000,001 | ||||
Threshold percentage of Public Shares subject to redemption without the Company's prior written consent | 15% | ||||
Obligation to redeem Public Shares if entity does not complete a Business Combination (as a percent) | 100% | ||||
Threshold business days for redemption of public shares | D | 10 | ||||
Maximum net interest to pay dissolution expenses | $ 100,000 | ||||
Cash Deficit | $ 706,193 | ||||
Threshold minimum aggregate fair market value as a percentage of the net assets held in the Trust Account | 80% | ||||
Operating bank accounts | $ 778,575 | ||||
Assets Held-in-trust | 253,381,468 | ||||
Amount in trust account | 253,381,468 | ||||
Initial Public Offering | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Number of units issued (in shares) | shares | 25,300,000 | ||||
Unit price | $ / shares | $ 10 | ||||
Proceeds from issuance of units | $ 253,000,000 | ||||
Transaction costs | 14,528,328 | ||||
Underwriting fees | 5,060,000 | ||||
Deferred underwriting fees | 8,855,000 | ||||
Other offering costs | 613,328 | ||||
Expenses Allocated to Warrants | $ 497,297 | ||||
Over-allotment option | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Number of units issued (in shares) | shares | 3,300,000 | ||||
Private Placement | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Number of warrants issued (in shares) | shares | 7,060,000 | ||||
Price of warrants | $ / shares | $ 1 | ||||
Proceeds from issuance of warrants | $ 7,060,000 | ||||
Class A Ordinary Shares | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Assets Held-in-trust | $ 58,400,000 | ||||
Number of shares redeemed | shares | 19,472,483 | ||||
Redemption price | $ / shares | $ 10.018 | ||||
Aggregate redemption amount | $ 195,100,000 | ||||
Aggregate redemption amount from trust account earnings | 400,000 | ||||
Amount in trust account | $ 58,400,000 | ||||
Working Capital Note | Sponsor | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Maximum borrowing capacity of related party promissory note | $ 905,000 | ||||
Outstanding balance of related party note | $ 700,000 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Class A Ordinary Shares Subject to Possible Redemption (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Dec. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||
Gross proceeds from Initial Public Offering | $ 253,000,000 | |||||
Proceeds allocated to Public Warrants | (8,475,500) | |||||
Class A ordinary shares issuance costs | (14,031,031) | |||||
Initial remeasurement of carrying value to redemption value | 22,506,531 | |||||
Subsequent remeasurement of carrying value to redemption value | 12,211 | |||||
Total remeasurement of carrying value to redemption value | 22,518,742 | |||||
Remeasurement of carrying value to redemption value | $ (381,468) | $ 37,516 | $ (6,309) | $ (6,239) | $ (343,952) | |
Class A ordinary shares subject to redemption, at the end | $ 253,381,468 | $ 253,381,468 | $ 253,037,516 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of Net Loss Per Ordinary Share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Numerator: | ||||||
Allocation of net (loss) income | $ (112,780) | $ 5,706,488 | $ (1,829,884) | $ 4,951,213 | $ 5,593,708 | $ 3,121,329 |
Class A Ordinary Shares | ||||||
Numerator: | ||||||
Allocation of net (loss) income | $ (90,281) | $ (1,463,907) | $ 4,474,966 | $ 2,497,063 | ||
Denominator: | ||||||
Basic weighted average shares outstanding | 25,300,000 | 25,300,000 | 25,300,000 | 25,300,000 | ||
Diluted weighted average shares outstanding | 25,300,000 | 25,300,000 | 25,300,000 | 25,300,000 | ||
Basic net income (loss) per ordinary share | $ 0 | $ (0.06) | $ 0.18 | $ 0.10 | ||
Diluted net income (loss) per ordinary share | $ 0 | $ (0.06) | $ 0.18 | $ 0.10 | ||
Class B Ordinary Shares | ||||||
Numerator: | ||||||
Allocation of net (loss) income | $ (22,499) | $ (365,977) | $ 1,118,742 | $ 624,266 | ||
Denominator: | ||||||
Basic weighted average shares outstanding | 6,305,000 | 6,325,000 | 6,305,000 | 6,325,000 | ||
Diluted weighted average shares outstanding | 6,305,000 | 6,325,000 | 6,305,000 | 6,325,000 | ||
Basic net income (loss) per ordinary share | $ 0 | $ (0.06) | $ 0.18 | $ 0.10 | ||
Diluted net income (loss) per ordinary share | $ 0 | $ (0.06) | $ 0.18 | $ 0.10 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional information (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Unrecognized tax benefits | $ 0 | $ 0 |
Amounts accrued for interest and penalties | 0 | 0 |
Tax provision | 0 | $ 0 |
Federal Depository Insurance Coverage | $ 250,000 | |
Initial Public Offering | ||
Diluted weighted average shares outstanding | 19,710,000 |
INITIAL PUBLIC OFFERING (Detail
INITIAL PUBLIC OFFERING (Details) | Jul. 20, 2020 $ / shares shares |
Initial Public Offering | |
Subsidiary, Sale of Stock [Line Items] | |
Number of units issued (in shares) | 25,300,000 |
Unit price | $ / shares | $ 10 |
Number of Class A ordinary shares in a unit | 1 |
Number of Public Warrants in a unit | 0.5 |
Number of Class A ordinary shares issuable per Public Warrant | 1 |
Exercise price of Public Warrant | $ / shares | $ 11.50 |
Over-allotment option | |
Subsidiary, Sale of Stock [Line Items] | |
Number of units issued (in shares) | 3,300,000 |
PRIVATE PLACEMENT (Details)
PRIVATE PLACEMENT (Details) - Private Placement | 6 Months Ended |
Jun. 30, 2022 USD ($) $ / shares shares | |
Subsidiary, Sale of Stock [Line Items] | |
Number of warrants issued (in shares) | shares | 7,060,000 |
Price of warrants | $ / shares | $ 1 |
Proceeds from issuance of warrants | $ | $ 7,060,000 |
Number of Class A ordinary shares issuable per Public Warrant | shares | 1 |
Exercise price of Public Warrant | $ / shares | $ 11.50 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - Founder Shares | 6 Months Ended | ||||||
Jul. 23, 2021 shares | Dec. 03, 2020 shares | Jul. 16, 2020 shares | Jul. 15, 2020 shares | Jun. 25, 2020 shares | Apr. 08, 2020 USD ($) shares | Jun. 30, 2022 D $ / shares | |
Related Party Transaction [Line Items] | |||||||
Ordinary shares subject to possible redemption (in shares) | 0 | ||||||
Sponsor | |||||||
Related Party Transaction [Line Items] | |||||||
Number of units sold, net of underwriting discounts and offering costs | 5,750,000 | ||||||
Aggregate purchase price | $ | $ 25,000 | ||||||
Share dividend | 20,000 | ||||||
Aggregate number of shares owned | 6,305,000 | 6,325,000 | |||||
Ordinary shares subject to possible redemption (in shares) | 20,000 | 825,000 | |||||
Percentage of issued and outstanding shares after the Initial Public Offering collectively held by initial stockholders | 20% | ||||||
Threshold period for not to transfer, assign or sell any of their shares or warrants after the completion of the initial business combination | 1 year | ||||||
Stock price trigger to transfer, assign or sell any shares or warrants of the company, after the completion of the initial business combination (in dollars per share) | $ / shares | $ 12 | ||||||
Threshold trading days for transfer, assign or sale of shares or warrants, after the completion of the initial business combination | D | 20 | ||||||
Threshold consecutive trading days for transfer, assign or sale of shares or warrants, after the completion of the initial business combination | D | 30 | ||||||
Threshold period after the business combination in which the 20 trading days within any 30 trading day period commences | 150 days | ||||||
Number of founder shares granted | 20,000 |
RELATED PARTY TRANSACTIONS - Ot
RELATED PARTY TRANSACTIONS - Others (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Jul. 16, 2020 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 24, 2022 | Dec. 31, 2021 | |
Administrative Services Agreement | |||||||
Related Party Transaction [Line Items] | |||||||
Expenses per month | $ 10,000 | ||||||
Expenses incurred | $ 30,000 | $ 30,000 | $ 60,000 | $ 60,000 | |||
Fees included within accounts payable and accrued expenses | 235,000 | 235,000 | $ 175,000 | ||||
Related Party Transaction, Expenses from Transactions with Related Party | 30,000 | $ 30,000 | 60,000 | $ 60,000 | |||
Related Party Loans | |||||||
Related Party Transaction [Line Items] | |||||||
Maximum Loans Convertible Into Warrants | $ 1,500,000 | $ 1,500,000 | |||||
Price of warrants (in dollars per share) | $ 1 | $ 1 | |||||
Working Capital Note | Sponsor | |||||||
Related Party Transaction [Line Items] | |||||||
Maximum borrowing capacity of related party promissory note | $ 905,000 | ||||||
Maximum borrowing capacity of related party promissory note | $ 905,000 | ||||||
Outstanding balance of related party note | $ 700,000 | $ 700,000 | $ 0 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | 1 Months Ended | 6 Months Ended | ||
Jul. 31, 2021 shares | Jun. 30, 2022 USD ($) item $ / shares | Jun. 30, 2021 USD ($) | Jun. 30, 2022 BRL (R$) item | |
Loss Contingencies [Line Items] | ||||
Maximum number of demands for registration of securities | item | 3 | 3 | ||
Deferred fee per unit | $ / shares | $ 0.35 | |||
Deferred underwriting fee payable | $ 8,855,000 | |||
Consulting fees payable per month | 1,200 | R$ 6600 | ||
Consulting fees incurred and paid | 8,803 | $ 7,811 | ||
Consulting fees included in accrued expenses | $ 1,400 | |||
Restricted Stock Units | ||||
Loss Contingencies [Line Items] | ||||
Number of RSU's granted to a member | shares | 20,000 | |||
Non Participated Initial Public Offering | ||||
Loss Contingencies [Line Items] | ||||
Deferred fee per unit | $ / shares | $ 0.175 | |||
Deferred underwriting fee payable | $ 4,427,500 |
SHAREHOLDERS' DEFICIT (Details)
SHAREHOLDERS' DEFICIT (Details) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
SHAREHOLDERS' DEFICIT | ||
Preferred shares, shares authorized | 5,000,000 | 5,000,000 |
Preferred shares, par value | $ 0.0001 | $ 0.0001 |
Preferred shares, shares issued | 0 | 0 |
Preferred shares, shares outstanding | 0 | 0 |
SHAREHOLDERS' DEFICIT - Common
SHAREHOLDERS' DEFICIT - Common Stock (Details) | 6 Months Ended | |
Jun. 30, 2022 Vote $ / shares shares | Dec. 31, 2021 $ / shares shares | |
Class A Ordinary Shares | ||
Class of Stock [Line Items] | ||
Voting rights per share | Vote | 1 | |
Common shares, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 |
Common shares, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common shares, shares issued (in shares) | 0 | 0 |
Common shares, shares outstanding (in shares) | 0 | 0 |
Ordinary shares subject to possible redemption issued (in shares) | 25,300,000 | 25,300,000 |
Class A ordinary shares subject to possible redemption | ||
Class of Stock [Line Items] | ||
Ordinary shares subject to possible redemption outstanding (in shares) | 25,300,000 | 25,300,000 |
Class B Ordinary Shares. | ||
Class of Stock [Line Items] | ||
Voting rights per share | Vote | 1 | |
Basis for conversion of convertible common stock | 1 | |
Threshold conversion ratio of stock | 20% | |
Common shares, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 |
Common shares, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common shares, shares issued (in shares) | 6,305,000 | 6,305,000 |
Common shares, shares outstanding (in shares) | 6,305,000 | 6,305,000 |
WARRANTS (Details)
WARRANTS (Details) | 6 Months Ended | |
Jun. 30, 2022 D $ / shares shares | Dec. 31, 2021 $ / shares shares | |
Class of Warrant or Right [Line Items] | ||
Threshold issue price for capital raising purposes in connection with the closing of a Business Combination | $ 9.20 | |
Percentage of gross proceeds on total equity proceeds | 60% | |
Threshold trading days for calculating Market Value | D | 20 | |
Warrant | ||
Class of Warrant or Right [Line Items] | ||
Public Warrants exercisable term after the completion of a business combination | 30 days | |
Public Warrants exercisable term from the closing of the initial public offering | 12 months | |
Public Warrants expiration term | 5 years | |
Threshold period for filling registration statement after business combination | 15 days | |
Threshold period for registration statement to be effective after which warrants can be exercised on a cashless basis | 60 days | |
Warrant | Redemption of Warrants When the Price per Class A Ordinary Share Equals or Exceeds $18.00 | ||
Class of Warrant or Right [Line Items] | ||
Stock price trigger for redemption of public warrants (in dollars per share) | $ 18 | |
Redemption price per public warrant (in dollars per share) | $ 0.01 | |
Minimum threshold written notice period for redemption of public warrants | 30 days | |
Threshold trading days for redemption of public warrants | D | 20 | |
Threshold consecutive trading days for redemption of public warrants | D | 30 | |
Threshold number of business days before sending notice of redemption to warrant holders | D | 3 | |
Adjustment of exercise price of warrants based on market value and newly issued price (as a percent) | 115% | |
Warrant | Redemption of Warrants When the Price per Class A Ordinary Share Equals or Exceeds $10.00 | ||
Class of Warrant or Right [Line Items] | ||
Stock price trigger for redemption of public warrants (in dollars per share) | $ 10 | |
Redemption price per public warrant (in dollars per share) | $ 0.10 | |
Minimum threshold written notice period for redemption of public warrants | 30 days | |
Adjustment one of redemption price of stock based on market value and newly issued price (as a percent) | 180% | |
Public Warrants | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | shares | 12,650,000 | 12,650,000 |
Number of class A ordinary shares issuable per warrant | shares | 1 | 1 |
Share exercise price | $ 11.50 | $ 11.50 |
Private Placement Warrants | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | shares | 7,060,000 | 7,060,000 |
Number of class A ordinary shares issuable per warrant | shares | 1 | |
Share exercise price | $ 11.50 | $ 11.50 |
Threshold period for not to transfer, assign or sell any of their shares or warrants after the completion of the initial business combination | 30 days | |
Private Placement Warrants | Redemption of Warrants When the Price per Class A Ordinary Share Equals or Exceeds $18.00 | ||
Class of Warrant or Right [Line Items] | ||
Stock price trigger for redemption of public warrants (in dollars per share) | $ 18 |
FAIR VALUE MEASUREMENTS - Asset
FAIR VALUE MEASUREMENTS - Assets and Liabilities at fair value (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Liabilities: | ||
Warrant liability | $ 1,574,829 | $ 10,556,676 |
Recurring | Level 1 | ||
Assets: | ||
Marketable securities held in Trust Account | 253,381,468 | 253,037,516 |
Public Warrants | Recurring | Level 1 | ||
Liabilities: | ||
Warrant liability | 1,010,735 | 6,775,340 |
Private Placement Warrants | Recurring | Level 2 | ||
Liabilities: | ||
Warrant liability | $ 564,094 | |
Private Placement Warrants | Recurring | Level 3 | ||
Liabilities: | ||
Warrant liability | $ 3,781,336 |
FAIR VALUE MEASUREMENTS - Quant
FAIR VALUE MEASUREMENTS - Quantitative information regarding Level 3 fair value measurements (Details) | Dec. 31, 2021 Y $ / shares |
Exercise price | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Input | 11.50 |
Share price | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Input | 9.87 |
Volatility | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Input | 12.3 |
Term | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Input | Y | 5 |
Risk-free rate | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Input | 1.10 |
Dividend yield | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Input | 0 |
FAIR VALUE MEASUREMENTS - Chang
FAIR VALUE MEASUREMENTS - Changes in the fair value of Level 3 warrant liabilities (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Transfers into or out of level 3 | $ 0 | |
Transfers out of Level 3 | $ 1,282,802 | |
Transfers into or out of level 2 | 0 | |
Private Placement Warrants | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value as of December 31, 2021 | 3,781,336 | |
Change in fair value | (2,498,534) | |
Transfers to Level 2 | $ (1,282,802) | |
Fair value as of June 30, 2022 | $ 3,781,336 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) | Jul. 14, 2022 | Jul. 07, 2022 | Jun. 30, 2022 |
Subsequent Event [Line Items] | |||
Amount in trust account | $ 253,381,468 | ||
Class A Ordinary Shares | |||
Subsequent Event [Line Items] | |||
Redemption price | $ 10.018 | ||
Number of shares redeemed | 19,472,483 | ||
Aggregate redemption amount | $ 195,100,000 | ||
Aggregate redemption amount from trust account earnings | 400,000 | ||
Amount in trust account | $ 58,400,000 | ||
Subsequent Event | Class A Ordinary Shares | |||
Subsequent Event [Line Items] | |||
Redemption price | $ 10.018 | ||
Number of shares redeemed | 19,472,483 | ||
Aggregate redemption amount | $ 195,100,000 | ||
Aggregate redemption amount from trust account earnings | 400,000 | ||
Amount in trust account | $ 58,400,000 | ||
Subsequent Event | Class A Ordinary Shares | Share subscription agreement with PIPE Investors | |||
Subsequent Event [Line Items] | |||
Shares committed for Subscription | 11,150,000 | ||
Unit price | $ 10 | ||
Subsequent Event | Class A Ordinary Shares | Share subscription agreement with Ambipar | |||
Subsequent Event [Line Items] | |||
Shares committed for Subscription | 5,050,000 | ||
Unit price | $ 10 |