ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
A | ||
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification Number) | |
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(Address of principal executive offices) |
(Zip Code) |
Title of Each Class: |
Trading Symbol(s) |
Name of Each Exchange on Which Registered: | ||
one-half of one Redeemable Warrant |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
☒ | Smaller reporting company | |||||
Emerging growth company |
Auditor Firm Id: |
Auditor Name: |
Auditor Location: |
• | we,” “us,” “company” or “our company” are to Angel Pond Holdings Corporation, a Cayman Islands exempted company; |
• | “Companies Law” are to the Companies Act (As Revised) of the Cayman Islands as the same may be amended from time to time; |
• | “founder shares” are to Class B Ordinary Shares initially purchased by our sponsor in private placements prior to the IPO which are currently held by our sponsor and our independent directors (which shares may be transferred to permitted transferees from time to time) and the Class A Ordinary Shares that will be issued upon the automatic conversion of the Class B Ordinary Shares at the time of our initial business combination as described herein; |
• | “initial shareholders” are to holders of our founder shares prior to the IPO; |
• | “management” or our “management team” are to our officers and directors; |
• | “ordinary shares” are to our Class A Ordinary Shares and our Class B Ordinary Shares; |
• | “public shares” are to Class A Ordinary Shares sold as part of the units in the IPO (whether they are purchased in the IPO or thereafter in the open market); |
• | “public shareholders” are to the holders of our public shares, including our initial shareholders and management team to the extent our initial shareholders and/or members of our management team purchase public shares, provided that each initial shareholder’s and member of our management team’s status as a “public shareholder” will only exist with respect to such public shares; |
• | “public warrants” are to the warrants sold as part of the units in the IPO (whether they are purchased in the IPO or thereafter in the open market); |
• | “private placement warrants” are to the warrants issued to our sponsor in a private placement simultaneously with the closing of the IPO; |
• | “sponsor” are to Angel Pond Partners LLC, a Cayman Islands limited liability company; and |
• | “warrants” are to our public warrants and private placement warrants. |
• | our ability to select an appropriate target business or businesses; |
• | our ability to complete our initial business combination; |
• | our expectations around the performance of the prospective target business or businesses; |
• | our success in retaining or recruiting, or changes required in, our officers, key employees or directors following our initial business combination; |
• | our officers and directors allocating their time to other businesses and potentially having conflicts of interest with our business or in approving our initial business combination; |
• | the potential incentive to consummate an initial business combination with an acquisition target that subsequently declines in value or is unprofitable for public investors due to the low initial price for the founder shares paid by our sponsor, certain members of our team as well as institutional and professional accredited investors pursuant to forward purchase arrangements; |
• | our potential ability to obtain additional financing to complete our initial business combination; |
• | our pool of prospective target businesses; |
• | our ability to consummate an initial business combination due to uncertainty resulting from the recent COVID-19 global pandemic; |
• | the ability of our officers and directors to generate a number of potential business combination opportunities; |
• | our public securities’ potential liquidity and trading; |
• | the lack of a market for our securities; |
• | the use of proceeds not held in the trust account or available to us from interest income on the trust account balance; |
• | the trust account not being subject to claims of third parties; |
• | our financial performance following the IPO; or |
• | the other risks and uncertainties discussed in “Risk Factors” and elsewhere in this Annual Report on Form 10-K. |
Item 1. |
Business |
a) | each MariaDB ordinary share (“MariaDB Ordinary Share”) issued and outstanding immediately prior to the Effective Time will be canceled and converted into the right to receive a number of Irish Holdco Ordinary Shares equal to the Exchange Ratio (as defined in the Merger Agreement); and |
b) | each equity award that is issued and outstanding under MariaDB’s equity incentive plans (each, a “Company Equity Award”) as of immediately prior to the Effective Time shall be automatically converted into an equity award to be settled in Irish Holdco Ordinary Shares on the same terms and conditions as were applicable to such Company Equity Award immediately prior to the Effective Time, equal to the product of the number of MariaDB Ordinary Shares subject to such Company Equity Award and the Exchange Ratio, at an exercise price per share equal to the exercise price per share of such Company Equity Award divided by the Exchange Ratio. |
• | Subscription Agreements with certain PIPE investors (the “PIPE Investors”), pursuant to which, among other things, the PIPE Investors have agreed to purchase an aggregate number of Irish Holdco Ordinary Shares for $9.50 per share in the PIPE Investment, for an aggregate purchase price equal to $18,200,000. |
• | Shareholder Support Agreements with certain shareholders of MariaDB, pursuant to which, among other things, such MariaDB shareholders agreed to, among other things, support and vote all of their MariaDB shares in favor of the Proposed Business Combination. |
• | Lock-Up Agreements with certain shareholders of MariaDB and certain of our shareholders, pursuant to which, among other things and subject to certain exceptions, such holders will agree that they will not sell or otherwise transfer the Irish Holdco Ordinary Shares received pursuant to the transactions contemplated by the Merger Agreement for a period of 180 days after the Closing. The Lock-Up Agreement as it relates to the Sponsor, will supersede the obligations of the Sponsor under the Letter Agreement entered into by the sponsor in connection with the Company’s initial public offering in May 2021. |
• | Registration Rights Agreements with certain equity holders of MariaDB and certain of our shareholders, pursuant to which, among other things, Irish Holdco will be required to file, within 30 days after the Closing, a registration statement to register the resale of certain securities of Irish Holdco held by such MariaDB and Company shareholders, who will also have customary demand and “piggyback” registration rights, subject to certain requirements and customary conditions. |
• | utilize our understanding of both the global technology trends and overall corporate strategic options to identify potential business combination targets; |
• | leverage the technological, strategic, financial, governance, and transactional experiences of our co-founders to bring advice and attention to potential business combination targets; and |
• | enhance and accelerate the growth of our business combination target, both organically and through acquisitions, to deliver long-term and sustainable growth and value creation to our shareholders. |
• | identifying, evaluating, investing in, and developing technology-enabled companies and businesses at various stages of their life cycle with unique technology insights, including through experience acting as an “angel investor” in early-stage ventures and as a pre-IPO investor in late-stage growth firms; |
• | operating in leadership capacities within established institutions, including setting strategies, overseeing risk management, and recruiting and nurturing talent, as well as founding and running investment businesses after retiring from Goldman Sachs and Alibaba, respectively, giving both co-founders unique insight into issues faced by entrepreneurs and growth companies; |
• | developing and growing companies, both organically and inorganically, and expanding the product ranges and geographic footprints of portfolio businesses, including by partnering with industry leaders to increase sales and improve the competitive position of companies and through fostering relationships with users, sellers, capital providers and target management teams; |
• | serving as directors on the boards of U.S. public companies, including roles on the compensation committee and audit committee, and providing advice on corporate governance; |
• | accessing the U.S. and global capital markets (including capital sources in Asia) across various business cycles, in connection with financing businesses and assisting companies with the transition to public ownership, and related experience in risk management; and |
• | sourcing, structuring and executing transactions in multiple geographies, including within the Greater China area, and under varying economic, financial and regulatory conditions. |
• | Complementary Background of the Co-Founders. leading e-commerce business in China. He has significant hands-on experience incubating and growing technology-enabled firms across industry sectors and helping them optimize their growth initiatives. We believe our co-founders’ leadership experience in world class companies, their relationships and deep industry knowledge will be viewed favorably by target businesses and investors. |
• | Proprietary Sourcing Channels our co-founders will provide us with differentiated access to business combination opportunities that would be difficult for other market participants to replicate. Given our profile and thematic approach, we anticipate that target business candidates may be brought to our attention from a variety of sources, including but not limited to founders and investors in private technology-enabled companies in the ecosystems in which we operate. |
• | Access to Strategic and Institutional Capital our co-founders have built deep ties with strategic and institutional investors and family offices, which we intend to access in order to secure additional sources of funds to help finance our initial business combination. |
• | Structuring and Execution Capabilities Our co-founders have extensive experience in identifying, evaluating, and executing investments in companies at various stages of their life cycle. We believe that the combined and complementary expertise of our co-founders will allow us to structure and execute transactions possessing attributes that are attractive to our investors. These transactions, which may have a significant cross-border component, require industry and local regulatory knowledge, rigorous due diligence, structuring creativity, and expertise in negotiations and documentation. We believe that by focusing our investment activities on these types of transactions, we can access high quality investment opportunities that may distinguish themselves in the eyes of our public investors based on their risk/reward profile. |
• | Technology-Enabled Growth Companies: limitation, e-commerce; enterprise software and cloud computing; and fintech. We intend to focus on companies which use and integrate technology to drive meaningful operational improvements and efficiency gains, or use technology solutions, including innovative business models and/or product offerings, to disrupt existing business models and create new paradigms that have large market potential. Our experience with early investments in companies such as Kuaidi Dache and Meituan speak to these philosophies. We will seek to exclude businesses that are extremely sensitive to geopolitical and regulatory conditions; |
• | Sustainable Competitive Differentiation and Superior Economic Models |
• | Within Our Relationship Nexus: |
• | Led by Strong Target Management Teams: |
• | Public-Company Ready: |
• | Represent a Compelling Value Proposition |
• | subject us to negative economic, competitive and regulatory developments, any or all of which may have a substantial adverse impact on the particular industry in which we operate after our initial business combination; and |
• | cause us to depend on the marketing and sale of a single product or limited number of products or services. |
• | We issue ordinary shares that will be equal to or in excess of 20% of the number of our ordinary shares then outstanding (other than in a public offering); |
• | Any of our directors, officers or substantial shareholders (as defined by NYSE rules) has a 5% or greater share of interest earned on the trust account (or such persons collectively have a 10% or greater interest), directly or indirectly, in the target business or assets to be acquired or otherwise and the present or potential issuance of ordinary shares could result in an increase in outstanding ordinary shares or voting power of 5% or more; or |
• | The issuance or potential issuance of ordinary shares will result in our undergoing a change of control. |
• | conduct the redemptions in conjunction with a proxy solicitation pursuant to Regulation 14A of the Exchange Act, which regulates the solicitation of proxies, and not pursuant to the tender offer rules, and |
• | file proxy materials with the SEC. |
• | conduct the redemptions pursuant to Rule 13e-4 and Regulation 14E of the Exchange Act, which regulate issuer tender offers, and |
• | file tender offer documents with the SEC prior to completing our initial business combination which contain substantially the same financial and other information about the initial business combination and the redemption rights as is required under Regulation 14A of the Exchange Act, which regulates the solicitation of proxies. |
Item 1A. |
Risk Factors |
• | adversely affect the economies and financial markets worldwide, leading to changes in interest rates, reduced liquidity and a continued slowdown in global economic conditions; |
• | provoke turbulence in financial markets which could make it impossible to raise additional capital to consummate a deal including debt or equity; |
• | disrupt our operations and those of our potential partners, including those helping us diligence or search for targets, due to illness or efforts to mitigate the pandemic, including but not limited to government-mandated shutdowns, other social distancing measures, travel restrictions, office closures and measures impacting on working practices, such as the imposition of remote working arrangements, and quarantine requirements and isolation measures under local laws; |
• | negatively impact the health of members of our team; |
• | adversely affect our ability to conduct redemptions; and |
• | materially and adversely affect the business of any potential target business with which we consummate a business combination. |
• | may significantly dilute the equity interest of investors in the IPO; |
• | may subordinate the rights of holders of Class A Ordinary Shares if preferred shares are issued with rights senior to those afforded our Class A Ordinary Shares; |
• | could cause a change in control if a substantial number of Class A Ordinary Shares are issued, which may affect, among other things, our ability to use our net operating loss carry forwards, if any, and could result in the resignation or removal of our present officers and directors; and |
• | may adversely affect prevailing market prices for our units, Class A Ordinary Shares and/or warrants. |
• | restrictions on the nature of our investments; and |
• | restrictions on the issuance of securities, |
• | registration as an investment company; |
• | adoption of a specific form of corporate structure; and |
• | reporting, record keeping, voting, proxy and disclosure requirements and other rules and regulations. |
• | a limited availability of market quotations for our securities; |
• | reduced liquidity for our securities; |
• | a determination that our Class A Ordinary Shares are a “penny stock” which will require brokers trading in our Class A Ordinary Shares to adhere to more stringent rules and possibly result in a reduced level of trading activity in the secondary trading market for our securities; |
• | a limited amount of news and analyst coverage; and |
• | a decreased ability to issue additional securities or obtain additional financing in the future. |
• | higher costs and difficulties inherent in managing cross-border business operations and complying with different commercial and legal requirements of overseas markets; |
• | rules and regulations regarding currency redemption; |
• | complex corporate withholding taxes on individuals; |
• | laws governing the manner in which future business combinations may be effected; |
• | exchange listing and/or delisting requirements; |
• | tariffs and trade barriers; |
• | regulations related to customs and import/export matters; |
• | local or regional economic policies and market conditions; |
• | unexpected changes in regulatory requirements; |
• | challenges in managing and staffing international operations; |
• | longer payment cycles and challenges in collecting accounts receivable; |
• | tax issues, including but not limited to rules regarding controlled foreign corporations or passive foreign investment companies, tax law changes and variations in tax laws as compared to the United States; |
• | currency fluctuations and exchange controls; |
• | rates of inflation; |
• | challenges in collecting accounts receivable; |
• | cultural and language differences; |
• | employment regulations; |
• | underdeveloped or unpredictable legal or regulatory systems; |
• | corruption; |
• | protection of intellectual property; |
• | social unrest, crime, strikes, riots and civil disturbances; |
• | regime changes and political upheaval; |
• | terrorist attacks, natural disasters and wars; |
• | deterioration of political relations with the United States; and |
• | government appropriations of assets. |
• | the requirement that the Ministry of Commerce of the PRC (the “MOFCOM”) be notified in certain circumstances in advance of any change-of-control transaction |
• | the authority of certain government agencies to have scrutiny over the economics of an acquisition transaction and requirement for consideration in a transaction to be paid within stated time limits; and |
• | the requirement for mergers and acquisitions by foreign investors that raise “national defense and security” concerns and mergers and acquisitions through which foreign investors may acquire de facto control over domestic enterprises that raise “national security” concerns to be subject to strict review by the MOFCOM. |
• | If the company or business we acquire provides products or services which relate to the facilitation of financial transactions, such as funds or securities settlement system, and such product or service fails or is compromised, we may be subject to claims from both the firms to whom we provide our products and services and the clients they serve; |
• | If we are unable to keep pace with evolving technology and changes in the financial services industry, our revenues and future prospects may decline; |
• | Our ability to provide financial technology products and services to customers may be reduced or eliminated by regulatory changes; |
• | Any business or company we acquire could be vulnerable to cyberattack or theft of individual identities or personal data; |
• | Difficulties with any products or services we provide could damage our reputation and business; |
• | A failure to comply with privacy regulations could adversely affect relations with customers and have a negative impact on business; |
• | We may not be able to protect our intellectual property and we may be subject to infringement claims; and |
• | We and any business or company we acquire may not be able to adapt to the complex and evolving regulatory environment for financial technology services in China. |
• | revoke the business and operating licenses of the potential future target business; |
• | confiscate relevant income and impose fines and other penalties; |
• | discontinue or restrict the operations of the potential future target business; |
• | require us or the potential future target business to restructure the relevant ownership structure or operations; |
• | restrict or prohibit our use of the proceeds of the IPO to finance our businesses and operations in the relevant jurisdiction; or |
• | impose conditions or requirements with which we or the potential future target business may not be able to comply. |
• | default and foreclosure on our assets if our operating revenues after an initial business combination are insufficient to repay our debt obligations; |
• | acceleration of our obligations to repay the indebtedness even if we make all principal and interest payments when due if we breach certain covenants that require the maintenance of certain financial ratios or reserves without a waiver or renegotiation of that covenant; |
• | our immediate payment of all principal and accrued interest, if any, if the debt security is payable on demand; |
• | our inability to obtain necessary additional financing if the debt security contains covenants restricting our ability to obtain such financing while the debt security is outstanding; |
• | our inability to pay dividends on our Class A Ordinary Shares; |
• | using a substantial portion of our cash flow to pay principal and interest on our debt, which will reduce the funds available for dividends on our Class A Ordinary Shares if declared, expenses, capital expenditures, acquisitions and other general corporate purposes; |
• | limitations on our flexibility in planning for and reacting to changes in our business and in the industry in which we operate; |
• | increased vulnerability to adverse changes in general economic, industry and competitive conditions and adverse changes in government regulation; and |
• | limitations on our ability to borrow additional amounts for expenses, capital expenditures, acquisitions, debt service requirements, execution of our strategy and other purposes and other disadvantages compared to our competitors who have less debt. |
• | solely dependent upon the performance of a single business, property or asset; or |
• | dependent upon the development or market acceptance of a single or limited number of products, processes or services. |
Item 1B. |
Unresolved Staff Comments |
Item 2. |
Properties |
Item 3. |
Legal Proceedings |
Item 4. |
Mine Safety Disclosures |
Item 5. |
Market for Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities |
Item 6. |
[Reserved] |
Item 7. |
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
• | may significantly dilute the equity interest of investors, which dilution would increase if the anti-dilution provisions in the Class B Ordinary Shares resulted in the issuance of Class A Ordinary Shares on a greater than one-to-one |
• | may subordinate the rights of holders of ordinary shares if preference shares are issued with rights senior to those afforded our ordinary shares; |
• | could cause a change of control if a substantial number of our ordinary shares are issued, which may affect, among other things, our ability to use our net operating loss carry forwards, if any, and could result in the resignation or removal of our present officers and directors; |
• | may have the effect of delaying or preventing a change of control of us by diluting the share ownership or voting rights of a person seeking to obtain control of us; and |
• | may adversely affect prevailing market prices for our Class A Ordinary Shares and/or warrants. |
• | default and foreclosure on our assets if our operating revenues after an initial business combination are insufficient to repay our debt obligations; |
• | acceleration of our obligations to repay the indebtedness even if we make all principal and interest payments when due if we breach certain covenants that require the maintenance of certain financial ratios or reserves without a waiver or renegotiation of that covenant; |
• | the Company’s immediate payment of all principal and accrued interest, if any, if the debt security is payable on demand; |
• | the Company’s inability to obtain necessary additional financing if the debt security contains covenants restricting our ability to obtain such financing while the debt security is outstanding; |
• | the Company’s inability to pay dividends on our ordinary shares; |
• | using a substantial portion of the Company’s cash flow to pay principal and interest on the Company’s debt, which will reduce the funds available for dividends on the Company’s ordinary shares if declared, expenses, capital expenditures, acquisitions and other general corporate purposes; |
• | limitations on the Company’s flexibility in planning for and reacting to changes in the Company’s business and in the industry in which the Company operates; |
• | increased vulnerability to adverse changes in general economic, industry and competitive conditions and adverse changes in government regulation; and |
• | limitations on the Company’s ability to borrow additional amounts for expenses, capital expenditures, acquisitions, debt service requirements, execution of the Company’s strategy and other purposes and other disadvantages compared to the Company’s competitors who have less debt. |
Item 7A. |
Quantitative and Qualitative Disclosures about Market Risk |
Item 8. |
Financial Statements and Supplementary Data |
F-2 |
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Financial Statements: |
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F-3 |
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F-4 |
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F-5 |
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F-6 |
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F-7 |
ASSETS |
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Current assets |
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Cash |
$ | |||
Prepaid expenses |
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Total current assets |
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Cash and marketable securities held in Trust Account |
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Total assets |
$ | |||
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LIABILITIES AND SHAREHOLDERS’ EQUITY(DEFICIT) |
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Current liabilities |
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Accounts payable and accrued expenses |
$ | |||
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Total current liabilities |
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Warrant liability |
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Deferred underwriting fee payable |
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Total liabilities |
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Ordinary Shares subject to possible redemption, |
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Shareholders’ Equity (Deficit): |
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Preferred shares, $ |
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Class A ordinary shares, $ ) |
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Class B ordinary shares, $ (1) |
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Additional paid in capital |
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Accumulated deficit |
( |
) | ||
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Total shareholders’ equity (deficit) |
( |
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Total Liabilities and shareholders’ equity (deficit) |
$ | |||
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(1) | The shares and the associated amounts have been retroactively restated to reflect the surrender of |
Formation costs and other operating expenses |
$ | |||
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Loss from operations |
( |
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Other Income: |
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Interest income |
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Change in fair value of warrant liability |
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Net income |
$ | |||
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Weighted average shares outstanding of Class A redeemable ordinary shares, basic and diluted (1) |
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Basic and diluted net income per ordinary share of Class A redeemable shares |
$ | |||
Weighted average shares outstanding of Class B non-redeemable ordinary shares, basic and diluted (1) |
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Basic and diluted net income per share of Class B non-redeemable ordinary shares |
$ |
(1) | The shares and the associated amounts have been retroactively restated to reflect the surrender of |
Class A |
Class B |
Additional |
Total |
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Ordinary Shares |
Ordinary Shares |
Paid in |
Accumulated |
Shareholders’ |
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Shares |
Amount |
Shares |
Amount |
Capital |
Deficit |
Equity (Deficit) |
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Balance—January 18, 2021 (date of inception) |
$ | $ | $ | $ | $ | |||||||||||||||||||||||
Issuance of Class B ordinary shares to sponsor (1) |
— | — | — | |||||||||||||||||||||||||
Sale of |
— | — | — | |||||||||||||||||||||||||
Ordinary shares subject to redemption |
( |
) | ( |
) | — | ( |
) | ( |
) | ( |
) | |||||||||||||||||
Option for sale of |
— | — | — | |||||||||||||||||||||||||
Forfeiture of Class B ordinary shares |
— | — | ( |
) | ( |
) | — | — | ||||||||||||||||||||
Ordinary shares subject to redemption |
( |
) | ( |
) | — | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
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Balance—December 31, 2021 |
$ | $ | $ | — | $ | ( |
) | $ | ( |
) | ||||||||||||||||||
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(1) |
The shares and the associated amounts have been retroactively restated to reflect the surrender of |
Cash flow from operating activities: |
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Net income |
$ | |||
Adjustments to reconcile net loss to net cash used in operating activities: |
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Interest earned in Trust Account |
( |
) | ||
Change in fair value of warrant liability |
( |
) | ||
Transaction costs allocable to warrant liability |
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Changes in operating assets and liabilities: |
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Prepaid expenses |
( |
) | ||
Accounts payable and accrued expenses |
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Net cash used in operating activities |
( |
) | ||
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Cash flows from investing activities: |
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Investment of cash in Trust Account |
( |
) | ||
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Net cash used in investing activities |
( |
) | ||
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Cash flows from financing activities: |
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Proceeds from sale of Units, net of underwriting discounts paid |
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Proceeds from sale of Class B ordinary shares |
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Proceeds from promissory note—related party |
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Proceeds from sale of Private Placement Warrants |
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Repayment of promissory note—related party |
( |
) | ||
Payments of deferred offering costs |
( |
) | ||
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Net cash provided by financing activities |
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Net change in cash |
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Cash at the beginning of the period |
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Cash at the end of the period |
$ | |||
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Non-Cash investing and financing activities: |
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Initial Classification of Class A shares subject to redemption |
$ | |||
Change in value of Class shares subject to redemption |
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Deferred underwriting fee payable |
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Initial measurement of warrants issued in connection with the Public Offering accounted for as liabilities |
Class A |
Class B |
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Basic and diluted net income per share |
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Numerator: |
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Allocation of net income |
$ | $ | ||||||
Denominator: |
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Basic and diluted weighted average common shares outstanding |
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Basic and diluted net income per share |
$ | $ |
c) |
each MariaDB ordinary share (“MariaDB Ordinary Share”) issued and outstanding immediately prior to the Effective Time will be canceled and converted into the right to receive a number of Irish Holdco Ordinary Shares equal to the Exchange Ratio (as defined in the Merger Agreement); and |
d) |
each equity award that is issued and outstanding under MariaDB’s equity incentive plans (each, a “Company Equity Award”) as of immediately prior to the Effective Time shall be automatically converted into an equity award to be settled in Irish Holdco Ordinary Shares on the same terms and conditions as were applicable to such Company Equity Award immediately prior to the Effective Time, equal to the product of the number of MariaDB Ordinary Shares subject to such Company Equity Award and the Exchange Ratio, at an exercise price per share equal to the exercise price per share of such Company Equity Award divided by the Exchange Ratio. |
• | Subscription Agreements with certain PIPE investors (the “PIPE Investors”), pursuan t to which, among other things, the PIPE Investors have agreed to purchase an aggregate number of Irish Holdco Ordinary Shares for $ | ||
• | Shareholder Support Agreements with certain shareholders of MariaDB, pursuant to which, among other things, such MariaDB shareholders agreed to, among other things, support and vote all of their MariaDB shares in favor of the Proposed Business Combination. |
• | Lock-Up Agreements with certain shareholders of MariaDB and certain of our shareholders, pursuant to which, among other things and subject to certain exceptions, such holders will agree that they will not sell or otherwise transfer the Irish Holdco Ordinary Shares received pursuant to the transactions contemplated by the Merger Agreement for a period of Lock-Up Agreement as it relates to the Sponsor, will supersede the obligations of the Sponsor under the Letter Agreement entered into by the sponsor in connection with the Company’s initial public offering in May 2021. | ||
• | Registration Rights Agreements with certain equity holders of MariaDB and certain of our shareholders, pursuant to which, among other things, Irish Holdco will be required to file, within |
• | in whole and not in part; |
• | at a price of $ |
• | upon not less than |
• | if, and only if, the reported last sale price of the Class A Ordinary Shares equals or exceeds $ |
• |
or |
• | in whole and not in part; |
• | at a price of $ |
• | upon not less than |
• | if, and only if, the reported last sale price of the Class A Ordinary Shares equals or exceeds $ |
• | provided that the Private Placement Warrants must also be concurrently called for redemption on the same terms as the outstanding public warrants if the reported last sale price of the Class A Ordinary Shares is less than $ 0 per share (as adjusted for share splits, share dividends, reorganizations, recapitalizations and the like) for any .0 |
• | Level 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets; |
• | Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and |
• | Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. |
Level |
December 31, 2021 |
|||||||
Assets: |
||||||||
Cash and marketable securities held in Trust Account |
1 | $ | ||||||
Liabilities: |
||||||||
Public Warrants |
1 | $ | ||||||
Private Placement Warrants |
2 | $ |
Input |
May 20, 2021 |
|||
Risk-free interest rate |
% | |||
Expected term (years) |
||||
Expected Volatility |
% | |||
Exercise Price |
$ | |||
Stock price |
$ |
Private Placement |
Public |
Warrant Liabilities |
||||||||||
Fair value as of January 18, 2021 |
$ | $ | $ | |||||||||
Initial Measurement on May 20, 2021 |
||||||||||||
Change in valuation inputs or other assumptions (1)(2) |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Fair value as of December 31, 2021 |
$ | $ | $ | |||||||||
|
|
|
|
|
|
(1) | Changes in valuation inputs or other assumptions are recognized in change in fair value of warrant liabilities in the Statement of Operations. |
(2) | Due to the use of quoted prices in an active market (Level 1) and the use of observable inputs for similar assets or liabilities (Level 2) to measure the fair values of the Public Warrants and Private Placement Warrants, respectively, subsequent to initial measurement, the Company had transfers out of Level 3 totaling approximately $ |
Financial statement lines impacted |
As Reported |
Adjustment: Reclass all Series A Ordinary Shares to temporary equity |
Adjustment: Adjust APIC to zero |
Adjusted Balance |
||||||||||||
Balance, May 20, 2021 |
May 20, 2021 |
|||||||||||||||
Class A Ordinary Shares subject to possible redemption (temporary equity) |
$ | $ | $ | — | $ | |||||||||||
Class A Ordinary Shares (permanent equity) |
( |
) | — | — | ||||||||||||
Additional paid-in capital |
( |
) | — | |||||||||||||
Accumulated deficit |
( |
) | — | ( |
) | ( |
) | |||||||||
Total shareholders’ equity (deficit) |
( |
) | — | ( |
) |
Balance, June 30, 2021 |
June 30., 2021 |
|||||||||||||||
Class A Ordinary Shares subject to possible redemption (temporary equity) |
$ | $ | $ | — | $ | |||||||||||
Class A Ordinary Shares (permanent equity) |
( |
) | — | — | ||||||||||||
Additional paid-in capital |
( |
) | — | |||||||||||||
Accumulated deficit |
( |
) | — | ( |
) | ( |
) | |||||||||
Total shareholders’ equity (deficit) |
( |
) | — | ( |
) |
Item 9. |
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. |
Item 9A. |
Controls and Procedures. |
Item 9B. |
Other Information |
Item 10. |
Directors, Executive Officers and Corporate Governance |
Name |
Age |
Position | ||
Theodore T. Wang | 55 | Co-Founder, Chairman and Chief Executive Officer | ||
Shihuang “Simon” Xie | 51 | Co-Founder | ||
Hanchen Jin | 32 | Chief Financial Officer | ||
Mary Ann Cloyd | 67 | Director | ||
William A. Houlihan | 66 | Director |
• | assisting board oversight of (1) the integrity of our financial statements, (2) our compliance with legal and regulatory requirements, (3) our independent auditor’s qualifications and independence, and (4) the performance of our internal audit function and independent auditors; the appointment, compensation, retention, replacement, and oversight of the work of the independent auditors and any other independent registered public accounting firm engaged by us; |
• | pre-approving all audit and non-audit services to be provided by the independent auditors or any other registered public accounting firm engaged by us, and establishing pre-approval policies and procedures; reviewing and discussing with the independent auditors all relationships the auditors have with us in order to evaluate their continued independence; |
• | setting clear policies for audit partner rotation in compliance with applicable laws and regulations; obtaining and reviewing a report, at least annually, from the independent auditors describing (1) the independent auditor’s internal quality-control procedures and (2) any material issues raised by the most recent internal quality-control review, or peer review, of the audit firm, or by any inquiry or investigation by governmental or professional authorities, within the preceding five years respecting one or more independent audits carried out by the firm and any steps taken to deal with such issues; |
• | meeting to review and discuss our annual audited financial statements and quarterly financial statements with management and the independent auditor, including reviewing our specific disclosures under “Management’s Discussion and Analysis of Financial Condition and Results of Operations”; reviewing and approving any related party transaction required to be disclosed pursuant to Item 404 of Regulation S-K promulgated by the SEC prior to us entering into such transaction; and |
• | reviewing with management, the independent auditors, and our legal advisors, as appropriate, any legal, regulatory or compliance matters, including any correspondence with regulators or government agencies and any employee complaints or published reports that raise material issues regarding our financial statements or accounting policies and any significant changes in accounting standards or rules promulgated by the Financial Accounting Standards Board, the SEC or other regulatory authorities. |
• | reviewing and approving on an annual basis the corporate goals and objectives relevant to our chief executive officer’s compensation, evaluating our chief executive officer’s performance in light of such goals and objectives and determining and approving the remuneration (if any) of our chief executive officer’s based on such evaluation; |
• | reviewing and making recommendations to our board of directors with respect to the compensation, and any incentive compensation and equity based plans that are subject to board approval of all of our other officers; |
• | reviewing our executive compensation policies and plans; |
• | implementing and administering our incentive compensation equity-based remuneration plans; |
• | assisting management in complying with our proxy statement and annual report disclosure requirements; |
• | approving all special perquisites, special cash payments and other special compensation and benefit arrangements for our officers and employees; |
• | producing a report on executive compensation to be included in our annual proxy statement; and |
• | reviewing, evaluating and recommending changes, if appropriate, to the remuneration for directors. |
• | identifying, screening and reviewing individuals qualified to serve as directors, consistent with criteria approved by the board, and recommending to the board of directors candidates for nomination for appointment at the annual general meeting or to fill vacancies on the board of directors; |
• | developing and recommending to the board of directors and overseeing implementation of our corporate governance guidelines; |
• | coordinating and overseeing the annual self-evaluation of the board of directors, its committees, individual directors and management in the governance of the company; and |
• | reviewing on a regular basis our overall corporate governance and recommending improvements as and when necessary. |
Item 11. |
Executive Compensation |
Item 12. |
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
• | each person known by us to be the beneficial owner of more than 5% of our outstanding ordinary shares; |
• | each of our executive officers and directors that beneficially owns our ordinary shares; and |
• | all our executive officers and directors as a group. |
Class A Ordinary Shares |
Approximate Percentage |
|||||||||||
Name and Address of Beneficial Owner(1) |
Number of Shares Beneficially Owned |
Approximate Percentage of Class |
of Outstanding Ordinary Shares |
|||||||||
Angel Pond Partners LLC (our sponsor)(2)(3) |
6,590,078 | 99.4 | % | 19.9 | % | |||||||
Theodore T. Wang(3)(4) |
6,590,078 | 99.4 | % | 19.9 | % | |||||||
Shihuang “Simon” Xie(3)(4) |
6,590,078 | 99.4 | % | 19.9 | % | |||||||
Mary Ann Cloyd |
23,896 | — | * | |||||||||
William A. Houlihan |
23,896 | — | * | |||||||||
Linden Capital L.P.(6) |
— | — | — | |||||||||
All directors and executive officers as a group (3 individuals)(3)(4) |
6,637,870 | 100 | % | 20.0 | % |
* | less than 1% |
(1) | Unless otherwise noted, the business address of each of the following is 950 Third Avenue, 25 th Floor, New York, NY 10022. |
(2) | Interests shown consist solely of founder shares, classified as Class B Ordinary Shares. Such shares will automatically convert into Class A Ordinary Shares concurrently with or immediately following the consummation of our initial business combination on a one-for-one basis, |
(3) | Angel Pond Partners LLC, our sponsor, is the record holder of the shares reported herein. Dr. Wang and an entity wholly owned and controlled by Mr. Xie are the co-managers of our sponsor and have joint voting and investment discretion with respect to the ordinary shares held of record by Angel Pond Partners LLC. Accordingly, the shares held by our sponsor may be deemed to be equally beneficially held by Dr. Wang and Mr. Xie. Dr. Wang and Mr. Xie disclaim beneficial ownership of the ordinary shares held of record by Angel Pond Partners LLC, except to the extent of any pecuniary interest therein. |
(4) | On March 15, 2021, our sponsor entered into forward purchase arrangements with certain institutional and professional accredited investors with whom Dr. Wang and Mr. Xie had pre-existing professional relationships pursuant to which our sponsor has agreed to transfer a total of 1,600,000 founder shares for upfront cash payments of $3.00 per share and 1,600,000 private placement warrants for upfront cash payments of $1.00 per warrant, for total aggregate consideration of $6,400,000, which our sponsor received prior to the date of the IPO. On January 28, 2022, our sponsor entered into another forward purchase arrangement pursuant to which our sponsor has agreed to transfer a total of 10,000 founder shares for upfront cash payments of $3.00 per share for total aggregate consideration of $30,000. These transactions were private resales to investors in reliance on the private placement doctrine and the so-called “4(a)(11 /2 )” exemption, and all of the resales were to sophisticated investors who are either qualified institutional buyers (as defined in Rule 144A under the Securities Act) or accredited investors (as defined in Rule 502 under the Securities Act) who had pre-existing relationships with the founders. These arrangements will be used by our sponsor to purchase a portion of the private placement warrants from us. The sponsor’s obligation to transfer the founder shares and private placement warrants pursuant to these arrangements is contingent upon consummation of an initial business combination and the expiration or termination of any lock-up arrangements in respect of those securities, including the lock-up arrangements described herein. Until the transfers are consummated, the sponsor will retain total voting and disposition control over the founder shares subject to the forward purchase agreements, subject to the future delivery obligations. In the event that an initial business combination is not consummated, the counterparties in these transactions will not receive any founder shares, private placement warrants or other consideration, and neither the sponsor nor the counterparties have any discretionary rights to unwind or otherwise redeem the securities. |
(5) | Linden Capital L.P. may have an interest in 750,000 founder shares upon the satisfaction of certain conditions, including the consummation of an initial business combination, as further described in footnote 4. |
Item 13. |
Certain Relationships and Related Transactions, and Director Independence |
Item 14. |
Principal Accountant Fees and Services. |
Item 15. |
Exhibits, Financial Statements and Financial Statement Schedules |
* | Incorporated by reference |
** | Filed herewith |
(1) | Incorporated by reference to the Company’s Form 8-K, filed with the SEC on May 20, 2021. |
(2) | Incorporated by reference to the Company’s Form S-1, filed with the SEC on March 8, 2021. |
(3) | Incorporated by reference to the Company’s Form 8-K, filed with the SEC on January 26, 2022. |
(4) | Incorporated by reference to the Company’s Form 8-K, filed with the SEC on February 2, 2022. |
Item 16. |
Form 10-K Summary |
March 15, 2022 | Angel Pond Holdings Corporation | |||||
By: | /s/ Theodore T. Wang | |||||
Name: | Theodore T. Wang | |||||
Title: | Chief Executive Officer (Principal Executive Officer) |
Name |
Position |
Date | ||
/s/ Theodore T. Wang |
Chief Executive Officer and Chairman | March 15 2022 | ||
Theodore T. Wang | (Principal Executive Officer) |
|||
/s/ Hanchen Jin |
Chief Financial Officer | March 15, 2022 | ||
Hanchen Jin | (Principal Financial and Accounting Officer) |
|||
/s/ William A. Houlihan |
Director | March 15, 2022 | ||
William A. Houlihan | ||||
/s/ Mary Ann Cloyd |
Director | March 15, 2022 | ||
Mary Ann Cloyd |