☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Cayman Islands | 001-40201 | 98-1578557 |
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (IRS Employer Identification No.) |
1 Pelican Lane Palm Beach, Florida 33480 (Address Of Principal Executive Offices) | 33480 (Zip Code) |
Title of Each Class: | Trading Symbol(s) | Name of Each Exchange on Which Registered: | ||
Units, each consisting of one Class A ordinary share and one-third of one redeemable warrant | ROSS.U | New York Stock Exchange | ||
Class A ordinary shares, par value $0.0001 per share | ROSS | New York Stock Exchange | ||
Redeemable warrants included as part of the units, each whole warrant exercisable for one share of Class A ordinary share at an exercise price of $11.50 per share | ROSS WS | New York Stock Exchange |
Large accelerated filer | ☐ | Accelerated filer | ☐ |
Non-accelerated filer | ☒ | Smaller reporting company | ☒ |
Emerging growth company | ☒ |
Page | ||
PART I. FINANCIAL INFORMATION | ||
Item 1. | 1 | |
1 | ||
2 | ||
3 | ||
4 | ||
5 | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II. OTHER INFORMATION | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. | ||
28 |
Item 1. |
Assets | ||||
Current assets: | ||||
Cash | $ | 1,606,521 | ||
Prepaid expenses | 19,516 | |||
Total current assets | 1,626,037 | |||
Investments held in Trust Account | 345,048,770 | |||
Total Assets | $ | 346,674,807 | ||
Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Deficit | ||||
Current liabilities: | ||||
Accounts payable | $ | 925,790 | ||
Accrued expenses | 649,183 | |||
Total current liabilities | 1,574,973 | |||
Derivative warrant liabilities | 15,515,670 | |||
Deferred underwriting commissions | 12,075,000 | |||
Total liabilities | 29,165,643 | |||
Commitments and Contingencies | 0 | |||
Class A ordinary shares subject to possible redemption, $0.0001 par value; 34,500,000 shares issued and outstanding; at redemption value of $10.00 per share | 345,000,000 | |||
Shareholders’ Deficit | ||||
Preference shares, $0.0001 par value; 1,000,000 shares authorized; NaN issued and outstanding | 0 | |||
Class A ordinary shares, $0.0001 par value; 500,000,000 shares authorized; 0 non-redeemable shares issued or outstanding | 0 | |||
Class B ordinary shares, $0.0001 par value; 50,000,000 shares authorized; 8,625,000 shares issued and outstanding | 863 | |||
Additional paid-in capital | 0 | |||
Accumulated deficit | (27,491,699 | ) | ||
Total shareholders’ deficit | (27,490,836 | ) | ||
Total Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Deficit | $ | 346,674,807 |
For the Three Months Ended September 30, 2021 | For the Period from January 19, 2021 (Inception) through September 30, 2021 | |||||||
(Unaudited) | (Unaudited) | |||||||
General and administrative expenses | $ | 765,318 | $ | 970,734 | ||||
General and administrative expenses - related party | 30,000 | 70,000 | ||||||
Loss from operations | (795,318 | ) | (1,040,734 | ) | ||||
Other income (expenses): | ||||||||
Change in fair value of derivative warrant liabilities | 1,220,330 | 10,634,330 | ||||||
Offering costs associated with derivative warrant liabilities | 0 | (997,440 | ) | |||||
Income from interest in operating account | 46 | 88 | ||||||
Income from investments held in Trust Account | 40,872 | 48,769 | ||||||
Net income | $ | 465,930 | $ | 8,645,013 | ||||
Weighted average shares outstanding of Class A ordinary shares, basic and diluted | 34,500,000 | 27,244,048 | ||||||
Basic and diluted net income per share, Class A ordinary share | $ | 0.01 | $ | 0.24 | ||||
Weighted average shares outstanding of Class B ordinary shares, basic | 8,625,000 | 8,388,393 | ||||||
Basic net income per share, Class B ordinary share | $ | 0.01 | $ | 0.24 | ||||
Weighted average shares outstanding of Class B ordinary shares, diluted | 8,625,000 | 8,625,000 | ||||||
Diluted net income per share, Class B ordinary share | $ | 0.01 | $ | 0.24 |
General and administrative expenses | $ | 70,262 | ||
General and administrative expenses - related party | 10,000 | |||
Loss from operations | (80,262 | ) | ||
Change in fair value of derivative warrant liabilities | 174,330 | |||
Offering costs associated with derivative warrant liabilities | (997,440 | ) | ||
Income from investments held in Trust Account | 2,727 | |||
Net loss | $ | (900,645 | ) | |
Weighted average shares outstanding of Class A ordinary shares, basic and diluted | 34,500,000 | |||
Basic and diluted net loss per share, Class A ordinary share | $ | 0.00 | ||
Weighted average shares outstanding of Class B ordinary shares, basic and diluted | 8,625,000 | |||
Basic and diluted net loss per share, Class B ordinary share | $ | (0.10 | ) |
Ordinary Shares | Additional Paid-in Capital | Accumulated Deficit | Total Shareholders’ Equity | |||||||||||||||||||||||||
Class A | Class B | |||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Balance - January 19, 2021 (inception) | - | $ | - | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
Issuance of Class B ordinary shares to Sponsor | - | - | 8,625,000 | 863 | 24,137 | - | 25,000 | |||||||||||||||||||||
Sale of units in initial public offering, less allocation to derivative warrant liabilities | 34,500,000 | 3,450 | - | - | 327,746,550 | - | 327,750,000 | |||||||||||||||||||||
Offering costs | - | - | - | - | (18,910,850 | ) | - | (18,910,850 | ) | |||||||||||||||||||
Class A ordinary shares subject to possible redemption | (30,296,350 | ) | (3,030 | ) | - | - | (302,960,470 | ) | - | (302,963,500 | ) | |||||||||||||||||
Net loss | - | - | - | - | - | (900,645 | ) | (900,645 | ) | |||||||||||||||||||
Balance - March 31, 2021 (Unaudited) | 4,203,650 | $ | 420 | 8,625,000 | $ | 863 | $ | 5,899,367 | $ | (900,645 | ) | $ | 5,000,005 |
Ordinary Shares | Additional | Total | ||||||||||||||||||||||||||
Class A | Class B | Paid-in | Accumulated | Shareholders’ | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Deficit | Deficit | ||||||||||||||||||||||
Balance - January 19, 2021 (inception) | 0 | $ | 0 | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||
Issuance of Class B ordinary shares to Sponsor | 0 | 0 | 8,625,000 | 863 | 24,137 | 0 | 25,000 | |||||||||||||||||||||
Accretion of Class A ordinary shares subject to possible redemption amount | - | - | - | - | (24,137 | ) | (36,136,712 | ) | (36,160,849 | ) | ||||||||||||||||||
Net loss | - | 0 | - | 0 | 0 | (900,645 | ) | (900,645 | ) | |||||||||||||||||||
Balance - March 31, 2021 (Unaudited) (as restated, see Note 2) | 0 | 0 | 8,625,000 | 863 | 0 | (37,037,357 | ) | (37,036,494 | ) | |||||||||||||||||||
Net income | - | 0 | - | 0 | 0 | 9,079,728 | 9,079,728 | |||||||||||||||||||||
Balance - June 30, 2021 (Unaudited) (as restated, see Note 2) | 0 | 0 | 8,625,000 | 863 | 0 | (27,957,629 | ) | (27,956,766) | ) | |||||||||||||||||||
Net income | - | 0 | - | 0 | 0 | 465,930 | 465,930 | |||||||||||||||||||||
Balance - September 30, 2021 (Unaudited) | 0 | $ | 0 | 8,625,000 | $ | 863 | $ | 0 | $ | (27,491,699 | ) | $ | (27,490,836 | ) |
Cash Flows from Operating Activities: | ||||||||
Net loss | $ | (900,645 | ) | |||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
Net income | $ | 8,645,013 | ||||||
Adjustments to reconcile net income to net cash used in operating activities: | ||||||||
Change in fair value of derivative warrant liabilities | (174,330 | ) | (10,634,330 | ) | ||||
Offering costs associated with derivative liabilities | 997,440 | 997,440 | ||||||
Income from investments held in Trust Account | (2,727 | ) | (48,769 | ) | ||||
General and administrative expenses paid by related party in exchange for issuance of Class B ordinary shares | 25,000 | 25,000 | ||||||
Changes in operating assets and liabilities: | ||||||||
Prepaid expenses | (24,517 | ) | (19,516 | ) | ||||
Accounts payable | 63,361 | 371,584 | ||||||
Accrued expenses | 17,533 | 424,089 | ||||||
Net cash provided by operating activities | 1,115 | |||||||
Net cash used in operating activities | (239,489 | ) | ||||||
Cash Flows from Investing Activities: | ||||||||
Cash deposited in Trust Account | (345,000,000 | ) | (345,000,000 | ) | ||||
Net cash used in investing activities | (345,000,000 | ) | (345,000,000 | ) | ||||
Cash Flows from Financing Activities: | ||||||||
Repayment of promissory note to related party | (89,890 | ) | (89,890 | ) | ||||
Proceeds received from initial public offering, gross | 345,000,000 | 345,000,000 | ||||||
Proceeds received from private placement | 8,900,000 | 8,900,000 | ||||||
Offering costs paid | (6,901,115 | ) | (6,964,100 | ) | ||||
Net cash provided by financing activities | 346,908,995 | 346,846,010 | ||||||
Net increase in cash | 1,910,110 | |||||||
Net change in cash | 1,606,521 | |||||||
Cash - beginning of the period | - | 0 | ||||||
Cash - end of the period | $ | 1,910,110 | $ | 1,606,521 | ||||
Supplemental disclosure of noncash financing activities: | ||||||||
Offering costs included in accounts payable | $ | 74,285 | $ | 554,206 | ||||
Offering costs included in accrued expenses | $ | 768,000 | $ | 225,094 | ||||
Offering costs paid by related party under promissory note | $ | 89,890 | $ | 89,890 | ||||
Deferred underwriting commissions | $ | 12,075,000 | $ | 12,075,000 | ||||
Initial value of Class A ordinary shares subject to possible redemption | $ | 328,971,630 | ||||||
Change in value of Class A common shares subject to possible redemption | $ | (26,008,130 | ) | |||||
Initial value of derivative warrant liabilities | $ | 26,150,000 |
Table of Contents |
ROSS ACQUISITION CORP II NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS |
Table of Contents |
ROSS ACQUISITION CORP II NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS |
As of March 31, 2021 | As Previously Reported | Adjustment | As Restated | |||||||||
Total assets | $ | 346,937,354 | $ | 0 | $ | 346,937,355 | ||||||
Total liabilities | $ | 38,973,849 | $ | 0 | $ | 38,973,849 | ||||||
Class A ordinary shares subject to possible redemption | 302,963,500 | 42,036,500 | 345,000,000 | |||||||||
Preference shares | 0 | 0 | 0 | |||||||||
Class A ordinary shares | 420 | (420 | ) | 0 | ||||||||
Class B ordinary shares | 863 | 0 | 863 | |||||||||
Additional paid-in capital | 5,899,367 | (5,899,367 | ) | 0 | ||||||||
Accumulated deficit | (900,645 | ) | (36,136,712 | ) | (37,037,357 | ) | ||||||
Total shareholders' equity (deficit) | $ | 5,000,005 | $ | (42,036,499 | ) | $ | (37,036,494 | ) | ||||
Total Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders' Equity (Deficit) | $ | 346,937,354 | $ | 0 | $ | 346,937,355 |
For the period from January 19, 2021 (inception) through March 31, 2021 | ||||||||||||
As Previously Reported | Adjustment | As Restated | ||||||||||
Supplemental Disclosure of Noncash Financing Activities: | ||||||||||||
Initial value of Class A ordinary shares subject to possible redemption | $ | 328,971,630 | $ | (328,971,630 | ) | $ | 0 | |||||
Change in value of Class A ordinary shares subject to possible redemption | $ | (26,008,130 | ) | $ | 26,008,130 | $ | 0 |
As of June 30, 2021 | As Previously Reported | Adjustment | As Restated | |||||||||
Total assets | $ | 346,838,219 | $ | 0 | $ | 346,838,219 | ||||||
Total liabilities | $ | 29,794,985 | $ | 0 | $ | 29,794,985 | ||||||
Class A ordinary shares subject to possible redemption | 312,043,230 | 32,956,770 | 345,000,000 | |||||||||
Preference shares | 0 | 0 | 0 | |||||||||
Class A ordinary shares | 330 | (330 | ) | 0 | ||||||||
Class B ordinary shares | 863 | 0 | 863 | |||||||||
Additional paid-in capital | 0 | 0 | 0 | |||||||||
Retained earnings (accumulated deficit) | 4,998,811 | (32,956,440 | ) | (27,957,629 | ) | |||||||
Total shareholders' equity (deficit) | $ | 5,000,004 | $ | (32,956,770 | ) | $ | (27,956,766 | ) | ||||
Total Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders' Equity (Deficit) | $ | 346,838,219 | $ | 0 | $ | 346,838,219 |
For the period from January 19, 2021 (inception) through June 30, 2021 | ||||||||||||
As Previously Reported | Adjustment | As Restated | ||||||||||
Supplemental Disclosure of Noncash Financing Activities: | ||||||||||||
Initial value of Class A ordinary shares subject to possible redemption | $ | 328,971,630 | $ | (328,971,630 | ) | $ | 0 | |||||
Change in value of Class A ordinary shares subject to possible redemption | $ | (20,108,673 | ) | $ | 20,108,673 | $ | 0 |
Earnings Per Share for Class A ordinary shares | ||||||||||||
As Previously Reported | Adjustment | As Adjusted | ||||||||||
For the period from January 19, 2021 (inception) through March 31, 2021 | ||||||||||||
Net loss | $ | (900,645 | ) | $ | 0 | $ | (900,645 | ) | ||||
Weighted average shares outstanding | 34,500,000 | (26,500,000 | ) | 8,000,000 | ||||||||
Basic and diluted loss per share | $ | 0.00 | $ | (0.06 | ) | $ | (0.06 | ) | ||||
For the three months ended June 30, 2021 | ||||||||||||
Net income | $ | 9,079,728 | $ | 0 | $ | 9,079,728 | ||||||
Weighted average shares outstanding | 34,500,000 | 0 | 34,500,000 | |||||||||
Basic and diluted earnings per share | $ | 0.00 | $ | 0.21 | $ | 0.21 | ||||||
For the period from January 19, 2021 (inception) through June 30, 2021 | ||||||||||||
Net income | $ | 8,179,083 | $ | 0 | $ | 8,179,083 | ||||||
Weighted average shares outstanding | 34,500,000 | (11,428,125 | ) | 23,071,875 | ||||||||
Basic and diluted earnings per share | $ | 0.00 | $ | 0.26 | $ | 0.26 |
Earnings Per Share for Class B ordinary shares | ||||||||||||
As Previously Reported | Adjustment | As Adjusted | ||||||||||
For the period from January 19, 2021 (inception) through March 31, 2021 | ||||||||||||
Net loss | $ | (900,645 | ) | $ | 0 | $ | (900,645 | ) | ||||
Weighted average shares outstanding | 8,625,000 | (864,130 | ) | 7,760,870 | ||||||||
Basic and diluted loss per share | $ | (0.10 | ) | $ | 0.04 | $ | (0.06 | ) | ||||
For the three months ended June 30, 2021 | ||||||||||||
Net income | $ | 9,079,728 | $ | 0 | $ | 9,079,728 | ||||||
Weighted average shares outstanding | 8,625,000 | 0 | 8,625,000 | |||||||||
Basic and diluted earnings per share | $ | 0.23 | $ | (0.02 | ) | $ | 0.21 | |||||
For the period from January 19, 2021 (inception) through June 30, 2021 | ||||||||||||
Net income | 8,179,083 | 0 | $ | 8,179,083 | ||||||||
Weighted average shares outstanding | 8,231,595 | 20,749 | 8,252,344 | |||||||||
Basic and diluted earnings per share | $ | 0.18 | $ | 0.08 | $ | 0.26 |
• | 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. |
Table of Contents |
ROSS ACQUISITION CORP II NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS |
For the Three Months Ended September 30, 2021 | For the Period from January 19, 2021 (Inception) through September 30, 2021 | |||||||||||||||
Class A | Class B | Class A | Class B | |||||||||||||
Numerator: | ||||||||||||||||
Allocation of net income | $ | 372,744 | $ | 93,186 | $ | 6,609,852 | $ | 2,035,161 | ||||||||
Denominator: | ||||||||||||||||
Basic weighted average ordinary shares outstanding | 34,500,000 | 8,625,000 | 27,244,048 | 8,388,393 | ||||||||||||
Basic net income per ordinary share | $ | 0.01 | $ | 0.01 | $ | 0.24 | $ | 0.24 |
For the Three Months Ended September 30, 2021 | For the Period from January 19, 2021 (Inception) through September 30, 2021 | |||||||||||||||
Class A | Class B | Class A | Class B | |||||||||||||
Numerator: | ||||||||||||||||
Allocation of net income | $ | 372,744 | $ | 93,186 | $ | 6,566,251 | $ | 2,078,763 | ||||||||
Denominator: | ||||||||||||||||
Diluted weighted average ordinary shares outstanding | 34,500,000 | 8,625,000 | 27,244,048 | 8,625,000 | ||||||||||||
Diluted net income per ordinary share | $ | 0.01 | $ | 0.01 | $ | 0.24 | $ | 0.24 |
Gross proceeds | $ | 345,000,000 | ||
Less: | ||||
Fair value of Public Warrants at issuance | (17,250,000 | ) | ||
Offering costs allocated to Class A ordinary shares subject to possible redemption | (18,910,850 | ) | ||
Plus: | ||||
Accretion on Class A ordinary shares subject to possible redemption amount | 36,160,850 | |||
Class A ordinary shares subject to possible redemption | $ | 345,000,000 |
Description | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | |||||||||
Assets: | ||||||||||||
Investments held in Trust Account - U.S Treasury securities | $ | 345,002,727 | $ | - | $ | - | ||||||
Liabilities: | ||||||||||||
Derivative warrant liabilities - Public warrants | $ | - | $ | - | $ | 17,135,000 | ||||||
Derivative warrant liabilities - Private placement warrants | $ | - | $ | - | $ | 8,840,670 |
Description | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | |||||||||
Assets: | ||||||||||||
Investments held in Trust Account - U.S Treasury securities | $ | 345,048,770 | $ | 0 | $ | 0 | ||||||
Liabilities: | ||||||||||||
Derivative warrant liabilities - Public warrants | $ | 10,235,000 | $ | 0 | $ | 0 | ||||||
Derivative warrant liabilities - Private placement warrants | $ | 0 | $ | 5,280,670 | $ | 0 |
March 16, 2021 | March 31, 2020 | At initial issuance | ||||||||||
Exercise price | $ | 11.50 | $ | 11.50 | $ | 11.50 | ||||||
Stock price | $ | 10.00 | $ | 10.00 | $ | 10.00 | ||||||
Volatility | 24.0 | % | 24.0 | % | 24.0 | % | ||||||
Expected life (years) | 5.25 | 5.25 | 5.25 | |||||||||
Risk-free rate | 0.07 | % | 0.07 | % | 0.07 | % |
Derivative liabilities at January 19, 2021 (inception) | $ | - | $ | 0 | ||||
Issuance of derivative liabilities | 26,150,000 | 26,150,000 | ||||||
Change in fair value of derivative liabilities | (174,330 | ) | (174,330 | ) | ||||
Derivative liabilities at March 31, 2021 | $ | 25,975,670 | 25,975,670 | |||||
Transfer of Public warrants to Level 1 | (17,135,000 | ) | ||||||
Transfer of Private Placement warrants to Level 2 | (8,840,670 | ) | ||||||
Derivative liabilities at June 30, 2021 | 0 | |||||||
Derivative liabilities at September 30, 2021 | $ | 0 |
Item 2. |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings. |
Item 1A. | Risk Factors. |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds from Registered Securities. |
Item 3. | Defaults upon Senior Securities. |
Item 4. | Mine Safety Disclosures. |
Item 5. | Other Information. |
Item 6. | Exhibits. |
Exhibit Number | Description | |
Certification of Chief Executive Officer (Principal Executive Officer) Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||
Certification of Chief Financial Officer (Principal Financial and Accounting Officer) Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||
Certification of Chief Executive Officer (Principal Executive Officer) Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||
Certification of Chief Financial Officer (Principal Financial and Accounting Officer) Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||
101.INS | XBRL Instance Document | |
101.SCH | XBRL Taxonomy Extension Schema Document | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
* | These certifications are furnished to the SEC pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing. |
Dated: | ROSS ACQUISITION CORP II | |
By: | ||
/s/ Wilbur L. Ross, Jr. | ||
Name: | Wilbur L. Ross, Jr. | |
Title: | Chief Executive Officer |