☒ | 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 | ||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
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-half of one redeemable warrant | ROSEU | Nasdaq Global Market | ||
Class A ordinary shares, par value $0.0001 per share | ROSE | Nasdaq Global Market | ||
Redeemable warrants, each whole warrant exercisable for one Class A ordinary share, each at an exercise price of $11.50 per share | ROSEW | Nasdaq Global Market |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☒ |
Page | ||||||||
Item 1. | ||||||||
1 | ||||||||
1 | ||||||||
Condensed Statement of Operations for the three months ended | 2 | |||||||
3 | ||||||||
4 | ||||||||
5 | ||||||||
Item 2. | ||||||||
18 | ||||||||
Item 3. | ||||||||
Item 4. | Control and Procedures | 21 | ||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 3. | Defaults Upon Senior Securities | 22 | ||||||
Item 4. | Mine Safety Disclosures | 22 | ||||||
Item 5. | Other Information | 23 | ||||||
Item 6. | Exhibits | 23 | ||||||
March 31, 2022 (Unaudited) | December 31, 2021 | |||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash | $ | 473,257 | $ | 658,747 | ||||
Prepaid expenses and other assets | 412,800 | 369,137 | ||||||
Due from affiliates | 25,000 | 25,000 | ||||||
Total current assets | 911,057 | 1,052,884 | ||||||
Prepaid expenses-non current assets | 14,122 | 104,905 | ||||||
Investments held in Trust Account | 146,642,494 | 146,627,729 | ||||||
TOTAL ASSETS | $ | 147,567,673 | $ | 147,785,518 | ||||
LIABILITIES, REDEEMABLE ORDINARY SHARES AND SHAREHOLDER’S DEFICIT | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable and accrued expenses | $ | 103,807 | $ | 51,264 | ||||
Total current liabilities | 103,807 | 51,264 | ||||||
Derivative warrant liabilities | 3,576,750 | 6,528,456 | ||||||
Deferred underwriting fee payable | 7,187,500 | 7,187,500 | ||||||
Total liabilities | 10,868,057 | 13,767,220 | ||||||
COMMITMENTS AND CONTINGENCIES | 0 | 0 | ||||||
Class A ordinary shares subject to possible redemption, $0.0001 par value, 14,375,000 shares at redemption value of $10.20 per share at March 31, 2022 and December 31, 2021 | 146,642,519 | 146,625,000 | ||||||
SHAREHOLDER’S DEFICIT | ||||||||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; 0ne issued and outstanding at March 31, 2022 and December 31, 2021 | 0 | 0 | ||||||
Class A ordinary shares; $0.0001 par value; 200,000,000 shares authorized; 0 shares issued and outstanding (excluding 14,375,000 shares subject to possible redemption) at March 31, 2022 and December 31, 2021 | 0 | 0 | ||||||
Class B ordinary shares; $0.0001 par value; 20,000,000 shares authorized; 5,031,250 shares issued and outstanding at March 31, 2022 and December 31, 2021 | 503 | 503 | ||||||
Additional paid-in capital | 0 | 0 | ||||||
Accumulated deficit | (9,943,406 | ) | (12,607,205 | ) | ||||
Total shareholder’s deficit | (9,942,903 | ) | (12,606,702 | ) | ||||
LIABILITIES, REDEEMABLE ORDINARY SHARES AND SHAREHOLDER’S DEFICIT | $ | 147,567,673 | $ | 147,785,518 | ||||
OPERATING EXPENSES | ||||
General and administrative expenses | $ | 285,168 | ||
Total operating expenses | 285,168 | |||
OTHER INCOME | ||||
Interest income on investments held in Trust Account and other interest | 14,780 | |||
Change in fair value of warrants | 2,951,706 | |||
Total other income | 2,966,486 | |||
NET INCOME | $ | 2,681,318 | ||
Weighted average shares outstanding of Class A ordinary shares | 14,375,000 | |||
Basic and diluted net income per Class A ordinary shares | $ | 0.14 | ||
Weighted average shares outstanding of Class B ordinary shares | 5,031,250 | |||
Basic and diluted net income per Class B ordinary shares | $ | 0.14 | ||
September 30, 2021 | ||||
ASSETS | ||||
OTHER ASSETS | ||||
Deferred offering costs | 399,334 | |||
Total other assets | 399,334 | |||
TOTAL ASSETS | $ | 399,334 | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
CURRENT LIABILITIES | ||||
Accounts payable and accrued expenses | $ | 9,619 | ||
Accrued offering costs | 236,348 | |||
Note payable - related party | 163,502 | |||
Total current liabilities | 409,469 | |||
TOTAL LIABILITIES | $ | 409,469 | ||
COMMITMENTS AND CONTINGENCIES | 0 | |||
SHAREHOLDERS’ EQUITY | ||||
Preferred stock, $0.0001 par value; 2,000,000 shares authorized; 0ne issued or outstanding | $ | 0 | ||
Class A ordinary shares; $0.0001 par value; 200,000,000 shares authorized; 0ne issued and outstanding | 0 | |||
Class B ordinary shares; $0.0001 par value; 20,000,000 shares authorized; 5,031,250 issued and outstanding (1) | 503 | |||
Additional paid-in capital | 24,497 | |||
Accumulated deficit | (35,135 | ) | ||
TOTAL SHAREHOLDERS’ EQUITY | (10,135 | ) | ||
TOTAL LIABILITIES AND | ||||
SHAREHOLDERS’ EQUITY | $ | 399,344 | ||
Class A ordinary shares Redeemable | Class B Ordinary shares Non-Redeemable | Additional paid-in capital | Accumulated deficit | Total Shareholders’ Deficit | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Balance, January 1, 2022 | 14,375,000 | $ | 146,625,000 | 5,031,250 | $ | 503 | $ | 0 | $ | (12,607,205 | ) | $ | (12,606,702 | ) | ||||||||||||||
Remeasurement of redeemable Class A ordinary shares to redemption value | — | 17,519 | — | — | (17,519 | ) | (17,519 | ) | ||||||||||||||||||||
Net income | — | — | — | — | — | 2,681,318 | 2,681,318 | |||||||||||||||||||||
Balance, March 31, 2022 | 14,375,000 | $ | 146,642,519 | 5,031,250 | $ | 503 | $ | 0 | $ | (9,943,406 | ) | $ | (9,942,903 | ) | ||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net income | $ | 2,681,318 | ||
Adjustments to reconcile net income to net cash used in operating activities: | ||||
Interest income on investments held in Trust Account | (14,765 | ) | ||
Change in fair value of warrants | (2,951,706 | ) | ||
Changes in operating assets and liabilities: | ||||
Prepaid expenses and other assets | 47,120 | |||
Accounts payable and accrued expenses | 52,543 | |||
Net cash used in operating activities | (185,490 | ) | ||
NET CHANGE IN CASH | (185,490 | ) | ||
CASH, BEGINNING OF PERIOD | 658,747 | |||
CASH, END OF PERIOD | $ | 473,257 | ||
Supplemental disclosure of noncash activities: | ||||
Re-measurement of redeemable Class A ordinary shares | $ | 17,519 |
For the three months period ended September 30, 2021 (Unaudited) | For the period March 29, 2021 (inception) through September 30, 2021 | |||||||
EXPENSES | ||||||||
General and administrative expenses | $ | 27,654 | $ | 35,135 | ||||
Total expenses | 27,654 | 35,135 | ||||||
NET LOSS | (27,654 | ) | (35,135 | ) | ||||
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING, BASIC AND DILUTED, REDEEMABLE SHARES SUBJECT TO REDEMPTION (1) | 4,375,000 | 4,375,000 | ||||||
BASIC AND DILUTED NET INCOME PER SHARE, REDEEMABLE SHARES SUBJECT TO REDEMPTION | $ | 0.00 | ($ | 0.01 | ) | |||
Ordinary shares | ||||||||||||||||||||||||||||
Class��A | Class B | Total shareholder’s equity | ||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Additional paid-in capital | Accumulated deficit | |||||||||||||||||||||||
Balance, March 29, 2021 (inception) | 0 | $ | 0 | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||
Issuance of Class B ordinary shares to Sponsor (1) | — | — | 5,031,250 | 503 | 24,497 | — | 25,000 | |||||||||||||||||||||
Net loss | — | — | — | — | 7,481 | 7,481 | ||||||||||||||||||||||
Balance, June 30 , 2021 | 0 | $ | 0 | 5,031,250 | $ | 503 | $ | 24,497 | $ | 7,481 | $ | |||||||||||||||||
Net loss | — | — | — | 0 | 0 | (27,654 | ) | (27,654 | ) | |||||||||||||||||||
Balance, September 30, 2021 (unaudited) | 0 | $ | 0 | 5,031,250 | $ | 503 | $ | 24,497 | $ | (35,135 | ) | $ | (10,135 | ) | ||||||||||||||
For the period March 29, 2021 (inception) through September 30, 2021 | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net loss | $ | (35,135 | ) | |
Accounts payable and accrued expenses | 35,135 | |||
Net cash flows used in operating activities | 0 | |||
NET CHANGE IN CASH | 0 | |||
CASH, BEGINNING OF PERIOD | 0 | |||
CASH, END OF PERIOD | $ | 0 | ||
Supplemental disclosure of noncash activities: | ||||
Payment of deferred offering costs and accrued expenses by note payable - related party | $ | 163,502 | ||
Deferred offering costs included in accrued offering costs | $ | 236,368 | ||
Payment of deferred offering costs by the Sponsor in exchange for the issuance of Class B ordinary shares | $ | 25,000 | ||
Gross proceeds | $ | 143,750,000 | ||
Less: | ||||
Proceeds allocated to Public Warrants | (6,842,500 | ) | ||
Class A ordinary shares issuance costs | (10,030,391 | ) | ||
Plus: Accretion of carrying value to redemption value | 19,747,891 | |||
Class A ordinary shares subject to possible redemption as of December 31, 2021 | 146,625,000 | |||
Plus: Remeasurement of Class A ordinary shares to redemption value | 17,519 | |||
Class A ordinary shares subject to possible redemption, as of March 31, 2022 | $ | 146,642,519 |
For the three months ended March 31, 2022 | ||||||||
Basic and diluted net income per share: | Class A Ordinary shares | Class B Ordinary shares | ||||||
Numerator: | ||||||||
Allocation of net income, including accretion of temporary equity | $ | 1,986,162 | $ | 695,156 | ||||
Denominator: | ||||||||
Weighted average shares outstanding | 14,375,000 | 5,031,250 | ||||||
Basic and dilution net income per share | $ | 0.14 | $ | 0.14 |
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 | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | ||||||||||||
Assets: | ||||||||||||||||
U.S. Treasury Securities | 1 | $ | 146,642,494 | 0 | 0 | |||||||||||
Liabilities: | ||||||||||||||||
Warrant Liability — Public Warrants | 1 | $ | 1,868,750 | 0 | — | |||||||||||
Warrant Liability — Private Warrants | 2 | 0 | $ | 1,708,000 | 0 |
Description | Level | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | ||||||||||||
Assets: | ||||||||||||||||
U.S. Treasury Securities | 1 | $ | 146,627,729 | 0 | 0 | |||||||||||
Liabilities: | ||||||||||||||||
Warrant Liability — Public Warrants | 1 | $ | 3,521,156 | 0 | ||||||||||||
Warrant Liability — Private Warrants | 3 | 0 | 0 | $ | 3,007,300 |
December 31, 2021 | ||||
Stock Price | $ | 9.92 | ||
Exercise Price | $ | 11.50 | ||
Redemption trigger price | $ | 18.00 | ||
Term (years) | 5.79 | |||
Probability of Acquisition | 100.00 | % | ||
Volatility | 8.2 | % | ||
Risk Free Rate | 1.32 | % | ||
Dividend Yield | 0 |
Derivative warrant liabilities at March 29, 2021 (inception) | $ | 0 | ||
Issuance of Private Warrants - Level 3 measurements | 5,843,800 | |||
Change in fair value of derivative warrant liabilities with Level 3 inputs | (2,836,500 | ) | ||
Derivative warrant liabilities at December 31, 2021 with Level 3 inputs | $ | 3,007,300 | ||
Transfer out of level 3 | (3,007,300 | ) | ||
Derivative warrant liabilities at March 31, 2022 with Level 3 inputs | $ | 0 | ||
ITEM 1. LEGAL PROCEEDINGS |
21 ITEM 1A. RISK FACTORS |
* | Filed herewith. |
** | Furnished herewith. |
ROSE HILL ACQUISITION CORPORATION | ||||||||
Date: | By: | /s/ Felipe Canales | ||||||
Name: | Felipe Canales | |||||||
Title: | Co- Chief Executive Officer and Director | |||||||
(Principal Executive Officer) | ||||||||
Date: | By: | /s/ Marco Simental | ||||||
Name: | Marco Simental | |||||||
Title: | ||||||||
(Principal Executive Officer) | ||||||||
Date: | By: | /s/ Albert Hill IV | ||||||
Name: | Albert Hill IV | |||||||
Title: | Co- Chief Financial Officer and Director | |||||||
(Principal Financial and Accounting Officer) | ||||||||
Date: | By: | /s/ Juan Jose Rosas | ||||||
Name: | Juan Jose Rosas | |||||||
Title: | Co- Chief Financial Officer and Director | |||||||
(Principal Financial and Accounting Officer) |