☒ | 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 | 98-1563924 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
2550 Sand Hill Road, Suite 150 | ||
Menlo Park, CA | 94025 | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Class A ordinary shares | AGCB | New York Stock Exchange LLC |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☒ |
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ITEM 1. | FINANCIAL STATEMENTS |
September 30, | December 31, | September 30, | December 31, | |||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
ASSETS | ||||||||||||||||
Current assets | ||||||||||||||||
Cash | $ | 451,456 | $ | — | $ | 451,456 | $ | — | ||||||||
Prepaid expenses | 486,333 | — | 486,333 | — | ||||||||||||
Total Current Assets | 937,789 | — | 937,789 | — | ||||||||||||
Deferred offering costs | — | 392,268 | — | 392,268 | ||||||||||||
FPA Asset | 471,389 | — | 471,389 | — | ||||||||||||
Marketable securities held in Trust Account | 450,019,615 | — | 450,019,615 | — | ||||||||||||
TOTAL ASSETS | $ | 451,428,793 | $ | 392,268 | $ | 451,428,793 | $ | 392,268 | ||||||||
LIABILITIES, CLASS A ORDINARY SHARES SUBJECT TO POSSIBLE REDEMPTION AND SHAREHOLDERS’ EQUITY (DEFICIT) | ||||||||||||||||
Liabilities | ||||||||||||||||
Current liabilities | ||||||||||||||||
Accrued expenses | $ | 666,341 | $ | — | $ | 666,341 | $ | — | ||||||||
Accrued offering costs | — | 252,678 | — | 252,678 | ||||||||||||
Promissory note – related party | 0 | 119,590 | 0 | 119,590 | ||||||||||||
Total Current Liabilities | 666,341 | 372,268 | 666,341 | 372,268 | ||||||||||||
Deferred underwriting fee payable | 15,750,000 | — | 15,750,000 | — | ||||||||||||
Total Liabilities | 16,416,341 | 372,268 | 16,416,341 | 372,268 | ||||||||||||
Commitments and Contingencies | 0 | 0 | 0 | 0 | ||||||||||||
Class A ordinary shares subject to possible redemption 45,000,000 shares and 0 shares as of September 30, 2021 and December 31, 2020, respectively, at a redemption value of $10.00 per share | 450,000,000 | — | ||||||||||||||
Class A ordinary shares subject to possible redemption, $0.0001 par value, 45,000,000shares and 0 shares as of September 30, 2021 and December 31, 2020, respectively, at a redemption value of $10.00 per share | 450,000,000 | — | ||||||||||||||
Shareholders’ Equity (Deficit) | ||||||||||||||||
Preference shares, $0.0001 par value; 1,000,000 shares authorized; 0 shares issued and outstanding | 0 | — | 0 | — | ||||||||||||
Class A ordinary shares, $0.0001 par value; 200,000,000 shares authorized; 1,100,000 and 0 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively | 110 | — | 110 | — | ||||||||||||
Class B ordinary shares, $0.0001 par value; 20,000,000 shares authorized; 11,250,000 shares issued and outstanding | 1,125 | 1,125 | 1,125 | 1,125 | ||||||||||||
Additional paid-in capital | 0 | 23,875 | 0 | 23,875 | ||||||||||||
Accumulated deficit | (14,988,783 | ) | (5,000 | ) | (14,988,783 | ) | (5,000 | ) | ||||||||
Total Shareholders’ Equity (Deficit) | (14,987,548 | ) | 20,000 | (14,987,548 | ) | 20,000 | ||||||||||
TOTAL LIABILITIES, CLASS A ORDINARY SHARES SUBJECT TO POSSIBLE REDEMPTION AND SHAREHOLDERS’ EQUITY (DEFICIT) | $ | 451,428,793 | $ | 392,268 | $ | 451,428,793 | $ | 392,268 | ||||||||
THREE MONTHS ENDED | NINE MONTHS ENDED | |||||||
September 30, 2021 | September 30, 2021 | |||||||
Operating and formation costs | $ | 693,298 | $ | 1,193,776 | ||||
Loss from operations | (693,298 | ) | (1,193,776 | ) | ||||
Other income (expense): | ||||||||
Interest earned on marketable securities held in Trust Account | 6,914 | 19,615 | ||||||
Change in fair value of FPA asset | 1,627,867 | 471,389 | ||||||
Net income (loss) | $ | 941,482 | $ | (702,773 | ) | |||
Weighted average shares outstanding, Class A redeemable ordinary shares | 45,000,000 | 43,505,535 | ||||||
Basic and diluted net income (loss) per share, Class A redeemable ordinary shares | $ | 0.02 | $ | (0.01 | ) | |||
Weighted average shares outstanding, Class A and Class B non-redeemable ordinary shares | 12,350,000 | 12,255,311 | ||||||
Basic and diluted net income (loss) per share, Class A and Class B non-redeemable ordinary shares | 0.02 | (0.01 | ) | |||||
Class A Ordinary Shares | Class B Ordinary Shares | Additional Paid-in Capital | Accumulated Deficit | Total Shareholders’ Equity (Deficit) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Class A Ordinary Shares | Class B Ordinary Shares | Additional Paid-in Capital | Accumulated Deficit | Total Shareholders’ Equity (Deficit) | ||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance — January 1, 2021 | — | $ | — | 11,250,000 | $ | 1,125 | $ | 23,875 | $ | (5,000 | ) | $ | 20,000 | — | $ | — | 11,250,000 | $ | 1,125 | $ | 23,875 | $ | (5,000 | ) | $ | 20,000 | ||||||||||||||||||||||||||||||
Sale of 1,100,000 Private Placement Shares | 1,100,000 | 110 | — | — | 10,999,890 | — | 11,000,000 | 1,100,000 | 110 | — | — | 10,999,890 | — | 11,000,000 | ||||||||||||||||||||||||||||||||||||||||||
Accretion to | — | — | — | — | (11,023,765 | ) | (14,281,010 | ) | (25,304,775 | ) | — | — | — | — | (11,023,765 | ) | (14,281,010 | ) | (25,304,775 | ) | ||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | (1,914,524 | ) | (1,914,524 | ) | — | — | — | — | — | (1,914,524 | ) | (1,914,524 | ) | ||||||||||||||||||||||||||||||||||||||
Balance — March 31, 2021 | 1,100,000 | 110 | 11,250,000 | 1,125 | — | (16,200,534 | ) | (16,199,299 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Balance — March 31, 2021 , as restated | 1,100,000 | 110 | 11,250,000 | 1,125 | — | (16,200,534 | ) | (16,199,299 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Net Income | — | — | — | — | — | 270,269 | 270,269 | — | — | — | — | — | 270,269 | 270,269 | ||||||||||||||||||||||||||||||||||||||||||
Balance — June 30, 2021 | 1,100,000 | 110 | 11,250,000 | 1,125 | — | (15,930,265 | ) | (15,929,030 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Balance — June 30, 2021 , as restated | 1,100,000 | 110 | 11,250,000 | 1,125 | — | (15,930,265 | ) | (15,929,030 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Net Income | — | — | — | — | — | 941,482 | 941,482 | — | — | — | — | — | 941,482 | 941,482 | ||||||||||||||||||||||||||||||||||||||||||
Balance — September 30, 2021 | 1,100,000 | $ | 110 | 11,250,000 | $ | 1,125 | $ | — | $ | (14,988,783 | ) | $ | (14,987,548 | ) | 1,100,000 | $ | 110 | 11,250,000 | $ | 1,125 | $ | — | $ | (14,988,783 | ) | $ | (14,987,548 | ) | ||||||||||||||||||||||||||||
Cash Flows from Operating Activities: | ||||
Net loss | $ | (702,773) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Change in fair value of FPA asset | (471,389 | ) | ||
Interest earned on marketable securities held in Trust account | (19,615 | ) | ||
Changes in operating assets and liabilities: | ||||
Prepaid expenses | (486,333 | ) | ||
Accrued expenses | 666,341 | |||
Net cash used in operating activities | (1,013,769 | ) | ||
Cash Flows from Investing Activities: | ||||
Investment of cash in Trust Account | (450,000,000 | ) | ||
Net cash used in investing activities | (450,000,000 | ) | ||
Cash Flows from Financing Activities: | ||||
Proceeds from sale of Class A ordinary shares, net of underwriting discounts paid | 441,000,000 | |||
Proceeds from sale of Private Placement Shares | 11,000,000 | |||
Repayment of promissory note – related party | (144,545 | ) | ||
Payment of offering costs | (390,230 | ) | ||
Net cash provided by financing activities | 451,465,225 | |||
Net Change in Cash | 451,456 | |||
Cash – Beginning of period | 0 | |||
Cash – End of period | $ | 451,456 | ||
Non-Cash investing and financing activities: | ||||
Deferred underwriting fee payable | $ | 15,750,000 | ||
March 31, 2021 (Unaudited) | As Previously Reported | Adjustment | As Restated | |||||||||
Class A Ordinary Shares subject to possible redemption | $ | 428,800,700 | $ | 21,199,300 | $ | 450,000,000 | ||||||
Class A ordinary shares | $ | 322 | $ | (212 | ) | 110 | ||||||
Additional Paid-in Capital | $ | 6,918,078 | $ | (6,918,078 | ) | 0 | ||||||
Accumulated Deficit | $ | (1,919,524 | ) | $ | (14,281,010 | ) | $ | (16,200,534 | ) | |||
Total Shareholders’ equity (deficit) | $ | 5,000,001 | $ | (21,199,300 | ) | $ | (16,199,299 | ) | ||||
Number of Class A ordinary shares subject to possible redemption | 42,880,070 | 2,119,930 | 45,000,000 |
Three Months Ended March 31, 2021 (Unaudited) | As Previously Reported | Adjustment | As Restated | |||||||||
Supplemental Disclosure of Noncash Financing Activities: | ||||||||||||
Change in value of Class A ordinary shares subject to possible redemption | $ | (1,914,520 | ) | $ | 1,914,520 | 0 | ||||||
Initial classification of Class A ordinary shares subject to possible redemption | $ | 430,715,220 | ($ 430,715,220 | ) | 0 |
June 30, 2021 (Unaudited) | As Previously Reported | Adjustment | As Restated | |||||||||
Class A Ordinary Shares subject to possible redemption | $ | 429,070,960 | $ | 20,929,040 | $ | 450,000,000 | ||||||
Class A ordinary shares | $ | 319 | $ | (209 | ) | 110 | ||||||
Additional Paid-in Capital | $ | 6,647,821 | $ | (6,647,821 | ) | 0 | ||||||
Accumulated Deficit | $ | (1,649,255 | ) | $ | (14,281,010 | ) | $ | (15,930,265 | ) | |||
Total Shareholders’ equity (deficit) | $ | 5,000,010 | $ | (20,929,040 | ) | $ | (15,929,030 | ) | ||||
Number of Class A ordinary shares subject to possible redemption | 42,907,096 | 2,092,904 | 45,000,000 |
Six Months Ended June 30, 2021 (Unaudited) | As Previously Reported | Adjustment | As Restated | |||||||||
Supplemental Disclosure of Noncash Financing Activities: | ||||||||||||
Change in value of Class A ordinary shares subject to possible redemption | $ | (1,644,260 | ) | $ | 1,644,260 | 0 | ||||||
Initial classification of Class A ordinary shares subject to possible redemption | $ | 430,715,220 | ($ 430,715,220 | ) | 0 |
Three Months ended March 31, 2021 (unaudited) | Earnings Per Share | |||||||||||
As Previously Reported | Adjustment | As Restated | ||||||||||
Diluted weighted average shares outstanding – Class A ordinary shares | $ | 45,000,000 | $ | (5,500,000 | ) | $ | 39,500,000 | |||||
Basic and Diluted Net Loss per Share, Class A ordinary shares | $ | (0.00 | ) | $ | (0.04 | ) | $ | (0.04 | ) | |||
Basic and Diluted Net Loss per Share, Class B ordinary shares | $ | (0.16 | ) | $ | 0.12 | $ | (0.04 | ) |
Three Months ended June 30, 2021 (unaudited) | Earnings Per Share | |||||||||||
As Previously Reported | Adjustment | As Restated | ||||||||||
Basic and Diluted Net Income per Share, Class A ordinary shares | $ | (0.00 | ) | $ | 0.00 | $ | 0.00 | |||||
Basic and Diluted Net Income per Share, Class B ordinary shares | $ | 0.02 | $ | (0.02 | ) | $ | 0.00 |
Six Months ended June 30, 2021 (unaudited) | Earnings Per Share | |||||||||||
As Previously Reported | Adjustment | As Restated | ||||||||||
Diluted weighted average shares outstanding – Class A ordinary shares | $ | 45,000,000 | $ | (2,734,807 | ) | $ | 42,265,193 | |||||
Basic and Diluted Net Loss per Share, Class A ordinary shares | $ | (0.00 | ) | $ | (0.03 | ) | $ | (0.03 | ) | |||
Basic and Diluted Net Loss per Share, Class B ordinary shares | $ | (0.14 | ) | $ | 0.11 | $ | (0.03 | ) |
Three Months Ended September 30, 2021 | Nine Months Ended September 30, 2021 | |||||||||||||||
Class A Redeemable | Class A and Class B Non-Redeemable | Class A redeemable | Class A and Class B Non-Redeemable | |||||||||||||
Basic and diluted net income per ordinary share | ||||||||||||||||
Numerator: | ||||||||||||||||
Allocation of net income (loss), as adjusted | $ | 738,739 | $ | 202,743 | $ | (548,315 | ) | $ | (154,458 | ) | ||||||
Denominator: | ||||||||||||||||
Basic and Diluted Weighted Average Shares Outstanding | 45,000,000 | 12,350,000 | 43,505,535 | 12,255,311 | ||||||||||||
Basic and Diluted Net Income (Loss) per Ordinary Share | $ | 0.02 | $ | 0.02 | $ | (0.01 | ) | $ | (0.01 | ) |
Level 1: | Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. | |
Level 2: | Observable inputs other than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets or liabilities and quoted prices for identical assets or liabilities in markets that are not active. | |
Level 3: | Unobservable inputs based on our assessment of the assumptions that market participants would use in pricing the asset or liability. |
Description | Level | September 30, 2021 | ||||||
Assets: | ||||||||
Investments held in Trust Account – U.S. Treasury Securities Money Market Fund | 1 | $ | 450,019,615 | |||||
FPA Asset | 3 | $ | 471,389 |
Input | September 30, 2021 | |||
Risk-free interest | 0.1 | % | ||
Years to expected IBC date | 0.75 | |||
Conditional probability of Securities Issued | 90.0 | % | ||
Fair value of security at valuation date | $ | (0.10 | ) |
Input | September 30, 2021 | |||
Risk-free interest | 0.1 | % | ||
Years to expected IBC date | 0.75 | |||
Conditional probability of Securities Issued | 90.0 | % | ||
Fair value of security at valuation date | $ | (0.10 | ) |
FPA Asset | FPA Asset | |||||||
Fair value, January 11, 2021 | $ | 73,207 | $ | 73,207 | ||||
Recognized loss on change in fair value | 1,590,883 | 1,590,883 | ||||||
Fair value, March 31, 2021 | 1,664,090 | $ | 1,664,090 | |||||
Recognized gain on change in fair value | (507,612 | ) | (507,612 | ) | ||||
Fair value, June 30, 2021 | $ | 1,156,478 | $ | 1,156,478 | ||||
Recognized gain on change in fair value | (1,627,867 | ) | (1,627,867 | ) | ||||
Fair value, September 30, 202 1 | $ | (471,389 | ) | $ | (471,389 | ) | ||
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Gross Proceeds | $ | 450,000,000 | ||
Less: | ||||
Class A ordinary shares issuance costs | $ | (25,304,775 | ) | |
Plus: | ||||
Accretion of carrying value to redemption value | $ | 25,304,775 | ||
Class A ordinary shares subject to possible redemption | $ | 450,000,000 | ||
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. |
* | Filed herewith. |
** | Furnished. |
ALTIMETER GROWTH CORP. 2 | ||||||
Date: January 6, 2022 | /s/ Brad Gerstner | |||||
Name: Title: | Brad Gerstner Chief Executive Officer, President and Chairman (Principal Executive Officer) | |||||
Date: January 6, 2022 | /s/ Hab Siam | |||||
Name: Title: | Hab Siam General Counsel (Principal Financial and Principal Accounting Officer) |