QUARTERLY REPORT PURSUANT TO SECTION |
TRANSITION REPORT PURSUANT TO SECTION |
(State or incorporation or organization) |
( Identification Number) | |||
(Address |
(Zip |
Title |
Trading Symbol(s) |
Name on Which | ||
one-fourth of one redeemable warrant |
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| Large accelerated filer | ☐ | Accelerated |
☐ | |||||||
| ☒ | Smaller reporting company | |||||||||
| Emerging growth company | ||||||||||
Page No. |
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Item 1. |
Financial Statements | 1 | ||||
| Condensed Balance Sheet as of September 30, 2021 (Unaudited) | 1 | |||||
| 2 | ||||||
| 3 | ||||||
| 4 | ||||||
| Notes to Condensed Financial Statements (Unaudited) | 5 | |||||
Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations | 16 | ||||
Item 3. |
Quantitative and Qualitative Disclosures About Market Risk | 22 | ||||
Item 4. |
Controls and Procedures | 22 | ||||
Item 1. |
Legal Proceedings | 23 | ||||
Item 1A. |
Risk Factors | 23 | ||||
Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds from Registered Securities | 23 | ||||
Item 3. |
Defaults Upon Senior Securities | 23 | ||||
Item 4. |
Mine Safety Disclosures | 23 | ||||
Item 5. |
Other Information | 23 | ||||
Item 6. |
Exhibits | 24 | ||||
September 30, 2021 |
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ASSETS |
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| Cash |
$ | |||
| Prepaid Expense |
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| Total Current Assets |
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| FPA Asset |
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| Cash held in Trust Account |
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| Total Asset |
$ |
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LIABILITIES AND SHAREHOLDERS’ DEFICIT |
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| Current Liabilities |
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| Accounts payable - related party |
$ | |||
| 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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| Commitments and Contingencies (Note 7 ) |
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| Class A ordinary shares subject to possible redemption, |
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| Shareholders’ Deficit |
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| Preferred shares - $ |
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| Class A ordinary shares - $ |
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| Class F ordinary shares, $ (1) (2) |
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| Class G ordinary shares, $ par value; (1) (2) |
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| Additional paid-in capital |
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| Accumulated Deficit |
( |
) | ||
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| Total Shareholders’ Deficit |
( |
) | ||
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| Total Liabilities and Shareholders’ Deficit |
$ |
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| (1) | Our initial shareholders initially held re-capitalization of our share capital effective July 5, 2021, the Class B ordinary shares have been canceled and all of the shares presently issued and outstanding are Class F ordinary shares and Class G ordinary shares (Class G ordinary shares are subject to vesting). All share and |
| (2) | On August 18, 2021, the Class F ordinary shares and Class G ordinary shares |
Three Months Ended September 30, 2021 |
For the period from March 10, 2021 (inception) through September 30, 2021 |
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| Formation costs and other operating expenses |
$ | $ | ||||||
| |
|
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| Loss from Operations |
( |
) | ( |
) | ||||
| Other Income (Expense): |
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| Unrealized gain on marketable securities held in Trust Account |
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| Transaction costs allocable to warrant liability |
( |
) | ( |
) | ||||
| Change in FV of Warrant Liability |
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| Change in FV of FPA Asset |
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| Other Income, net |
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| Net income |
$ | $ | ||||||
| Weighted average shares outstanding of Class A redeemable ordinary shares (1) (2) |
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| Basic and diluted net income per share, Class A |
$ | $ | ||||||
| Weighted average shares outstanding of Class F non-redeemable ordinary shares(1) (2) |
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| Basic and diluted net income per share, Class F |
$ | $ | ||||||
| (1) | Our initial shareholders initially held re-capitalization of our share capital effective July 5, 2021, the Class B ordinary shares have been canceled and all of the shares presently issued and outstanding are Class F ordinary shares and Class G ordinary shares (Class G ordinary shares are subject to vesting). All share and per-share amounts have been retroactively restated to reflect the share capitalization and return of shares (see Notes 5 and 8) |
| (2) | On August 18, 2021, the underwriters partially exercised the over-allotment option resulting in the issuance of an additional Class F ordinary shares and Class G ordinary shares to the Sponsor. |
Class A Ordinary Shares |
Class F Ordinary Shares |
Class G Ordinary Shares |
Additional Paid-in Capital |
Accumulated Deficit |
Total Shareholders’ Equity |
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Shares |
Amount |
Shares |
Amount |
Shares |
Amount |
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| Balance – March 10, 2021 (inception) |
$ |
$ |
$ |
$ |
$ |
$ |
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| Issuance of Class F ordinary shares to sponsors (1) |
— | $ |
— | $ |
— | $ |
— | $ |
$ |
— | $ |
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| Issuance of Class G ordinary shares to sponsors (1) |
— | $ |
— | — | $ |
— | $ |
$ |
— | $ |
— | $ |
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| Net loss |
— | $ |
— | — | $ |
— | — | $ |
— | $ |
— | $ |
( |
) | $ |
( |
) | |||||||||||||||||||
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| Balance – March 31, 2021 |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
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| Net loss |
— | $ |
— | $ |
— | $ |
$ |
$ |
$ |
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| Balance – June 30, 2021 |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
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| Partial exercise of the underwriters’ over-allotment option(2) |
$ |
— | $ |
$ |
$ |
— | $ |
— | $ |
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| Class A ordinary shares accretion to redemption value (Restated – see Note 2) |
— | $ |
— | — | $ |
— | — | $ |
— | $ |
( |
) | $ |
( |
) | $ |
( |
) | ||||||||||||||||||
| Net income |
— | $ |
— | — | $ |
— | $ |
— | $ |
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| Balance – September 30, 2021 |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | ||||||||||||||||||||||||||
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| (1) | Our initial shareholders initially held re-capitalization of our share capital effective July 5, 2021, the Class B ordinary shares have been canceled and all of the shares presently issued and outstanding are Class F ordinary shares and Class G ordinary shares (Class G ordinary shares are subject to vesting). All share and |
| (2) | On August 18, 2021, the Class F ordinary shares and Class G ordinary shares . |
| Cash Flows from Operating Activities: |
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| Net income |
$ |
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| Adjustments to reconcile net loss to net cash used in operating activities |
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| Unrealized gains earned on marketable securities held in Trust Account |
( |
) | ||
| Change in fair value of Warrant Liability |
( |
) | ||
| Change in fair value of FPA Asset |
( |
) | ||
| Transaction Costs allocated to Warrant Liability |
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| Changes in operating assets and liabilities: |
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| Prepaid expenses |
( |
) | ||
| Accrued expenses |
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| |
|
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| Net cash (used in) provided by operating activities |
( |
) | ||
| |
|
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| Cash Flows from Investing Activities: |
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| Investment of cash into Trust Account |
( |
) | ||
| |
|
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| Net cash (used in) provided by Investing activities |
( |
) | ||
| |
|
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| Cash Flows from Financing Activities: |
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| Proceeds from sale of Class A ordinary shares; net of underwriting discounts paid |
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| Proceeds from sale of Private Placement Shares |
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| Proceeds from sale of Private Placement Warrants |
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| Proceeds from promissory note |
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| Repayment of promissory note – related party |
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| Payment of offering costs |
( |
) | ||
| |
|
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| Net cash (used in) provided by Financing Activities |
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| |
|
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| Net change in Cash |
$ |
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| |
|
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| Cash – Beginning of period |
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| |
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| Cash – End of period |
$ |
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| |
|
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| Non-Cash investing and financing activities |
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| Offering costs included in accrued offering costs |
$ |
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| Payment of accrued expense through promissory note |
$ |
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| Payment of prepaid expenses through promissory note |
$ |
( |
) | |
| Initial classification of Class A ordinary shares subject to possible redemption |
$ |
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| Deferred underwriting fee payable |
$ |
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| Initial measurement of warrants issued in connection with the initial public offering accounted for as liabilities |
$ |
|||
| Initial measurement of FPA units issued in connection with the initial public offering accounted for as liabilities |
$ |
| 8/6/2021 |
As Previously Reported |
Adjustment |
As Restated |
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| Class A Ordinary Shares subject to possible redemption |
||||||||||||
| Class A ordinary shares |
( |
) |
— |
|||||||||
| Additional Paid in Capital |
( |
) |
— |
|||||||||
| Accumulated Deficit |
( |
) |
( |
) |
( |
) | ||||||
| Total Shareholders’ equity (deficit) |
( |
) |
( |
) | ||||||||
| • | 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 $ |
| • | in whole and not in part; |
| • | at |
| • | if, and only if, the Reference Value (as defined above under “Redemption of warrants when the price per Class A ordinary share equals or exceeds $18.00”) equals or exceeds $ |
| • | if the Reference Value is less than $ |
| 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 the Company’s assessment of the assumptions that market participants would use in pricing the asset or liability. | |
Level 1 |
Level 2 |
Level 3 |
Total |
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| Cash held in trust account U.S. Treasury Securities |
$ | $ | $ | — | $ | |||||||||||
| Liabilities: |
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| Warrant liabilities |
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| Public Warrants |
$ | $ | $ | — | $ | |||||||||||
| Private Placement Warrants |
— | |||||||||||||||
| |
|
|
|
|
|
|
|
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| Total warrant liabilities |
$ | $ | $ | $ | ||||||||||||
| FPA asset |
$ | — | $ | $ | $ | |||||||||||
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Input |
September 30, 2021 (unaudited) |
August 6, 2021 |
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| Risk-free interest rate |
% |
% | ||||||
| Expected term (years) |
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| Expected volatility |
% |
% | ||||||
| Exercise price |
$ |
$ |
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| Fair value of Class A ordinary shares |
$ |
$ |
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Private Placement |
||||
| Fair value as of August 6, 2021 |
$ |
|||
| Change in valuation inputs or other assumptions (1) |
( |
) | ||
| |
|
|||
| Fair value as of September 30, 2021 |
$ |
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| |
|
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(1) |
Represents the non-cash gain on the change in valuation of the Private Placement Warrants and is included in Gain on change in fair value of warrant liability in the unaudited condensed statement of operations. |
FPA Asset |
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| Fair value as of August 6, 2021 |
$ |
|||
| Change in valuation inputs or other assumptions (1) |
$ |
( |
) | |
| |
|
|||
| Fair value as of September 30, 2021 |
$ |
( |
) | |
| |
|
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(1) |
Represents the non-cash gain on the change in valuation of the FPA asset and is included in Gain on change in fair value of FPA asset in the unaudited condensed statement of operations. |
| Level 1 | – | Quoted prices in active markets for identical assets or liabilities on the reporting date. | ||
| Level 2 | – | Pricing inputs are based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||
| Level 3 | – | Pricing inputs are generally unobservable and include situations where there is little, if any, market activity for the investment. The inputs into the determination of fair value require management’s judgment or estimation of assumptions that market participants would use in pricing the assets or liabilities. The fair values are therefore determined using factors that involve considerable judgment and interpretations, including, but not limited to, private and public comparables, third-party appraisals, discounted cash flow models, and fund manager estimates. | ||
| * | Filed herewith. |
| ** | Furnished. |
| Date: November 23, 2021 | By: | /s/ Maxime Franzetti | ||||
| Name: | Maxime Franzetti | |||||
| Title: | Chief Executive Officer and President | |||||
| (Principal Executive Officer) | ||||||
| By: | /s/ Russ Pillar | |||||
| Name: | Russ Pillar | |||||
| Title: | Chief Financial Officer | |||||
| (Principal Financial and Accounting Officer) | ||||||
EXHIBIT 31.1
CERTIFICATION
PURSUANT TO
UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS
I, Maxime Franzetti, certify that:
| 1. | I have reviewed this Quarterly Report on Form 10-Q |
| 2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
| 3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
| 4. | The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have: |
| a |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
| b |
[Paragraph omitted pursuant to SEC Release Nos. 33-8238/34-47986 and 33-8392/34-49313]; |
| c |
Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
| d |
Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
| 5. | The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
| (a |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and |
| (b |
Any fraud, whether or not material, that involves management or other employees who have a significant role in
the registrants internal |
| Date: |
||||||
| /s/ Maxime Franzetti | ||||||
| Name: | Maxime Franzetti | |||||
| Title: | Chief Executive Officer | |||||
| (Principal Executive Officer) | ||||||
EXHIBIT 31.2
CERTIFICATION
PURSUANT TO
UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS
I, Russ Pillar, certify that:
| 1. | I have reviewed this Quarterly Report on Form 10-Q |
| 2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
| 3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
| 4. | The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have: |
| a |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
| b |
[Paragraph omitted pursuant to SEC Release Nos. 33-8238/34-47986 and 33-8392/34-49313]; |
| c |
Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
| d |
Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
| 5. | The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
| (a |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and |
| (b |
Any fraud, whether or not material, that involves management or other employees who have a significant role in
the registrants internal |
| Date: | ||||||
| 23, 2021 | By: | /s/ Russ Pillar | ||||
| Russ Pillar | ||||||
| Chief Financial Officer | ||||||
| (Principal Financial and Accounting Officer) | ||||||
EXHIBIT 32.1
CERTIFICATION PURSUANT TO
18 U.S.C.
(SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002)
In connection with the Quarterly Report of Blue Whale Acquisition the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act
of 1934; and the information contained in the Report fairly presents, in all material respects, the financial condition and
results of operations of the Company. /s/ Maxime Franzetti
(1)
(2)
Date: November 23, 2021
By:
Name:
Title:
Chief Executive Officer
(Principal Executive Officer)
EXHIBIT 32.2
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350
(SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002)
In connection with the Quarterly Report of Blue Whale Acquisition the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act
of 1934; and the information contained in the Report fairly presents, in all material respects, the financial condition and
results of operations of the Company. /s/ Russ Pillar
(1)
(2)
Date: November 23, 2021
By:
Russ Pillar
Chief Financial Officer
(Principal Financial and Accounting Officer)