Exhibit 15.6
PRO FORMA COMBINED STATEMENT OF FINANCIAL POSITION AS OF SEPTEMBER 30, 2019
(UNAUDITED)
(A) | (B) | (C) | Reflecting Actual Redemptions, Trust Account Balance, Transaction Costs and 40% Cash Election by Seller upon Closing of Business Combination on December 20, 2019 | |||||||||||||||||
BPGIC | Twelve Seas | Pubco | Pro Forma Adjustments | Pro Forma Balance Sheet | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Non-current assets | ||||||||||||||||||||
Property, plant and equipment | $ | 205,919,914 | $ | — | $ | — | $ | — | $ | 205,919,914 | ||||||||||
Advance to contractors | 29,377,827 | — | — | — | 29,377,827 | |||||||||||||||
Cash and securities held in Trust Account | — | 212,845,645 | — | (212,845,645 | )(1) | — | ||||||||||||||
Total non-current assets | 235,297,741 | 212,845,645 | — | (212,845,645 | ) | 235,297,741 | ||||||||||||||
Inventories | 175,030 | — | — | — | 175,030 | |||||||||||||||
Trade receivables, prepayments and other receivables | 4,613,412 | 20,133 | — | — | 4,633,545 | |||||||||||||||
Bank balances and cash | 6,731,829 | 43,368 | — | 213,558,637 | (1) | 26,571,535 | ||||||||||||||
(1,624,640 | )(2) | |||||||||||||||||||
(819,595 | )(3) | |||||||||||||||||||
(175,357,237 | )(4) | |||||||||||||||||||
(13,225,827 | )(7) | |||||||||||||||||||
(3,000,000 | )(8) | |||||||||||||||||||
265,000 | (9) | |||||||||||||||||||
Total Current Assets | 11,520,271 | 63,501 | — | 19,796,338 | 31,380,110 | |||||||||||||||
TOTAL ASSETS | $ | 246,818,012 | $ | 212,909,146 | $ | — | $ | (193,049,307 | ) | $ | 266,677,851 |
PRO FORMA COMBINED STATEMENT OF FINANCIAL POSITION AS OF SEPTEMBER 30, 2019
(UNAUDITED)
(A) | (B) | (C) | Reflecting Actual Redemptions, Trust Account Balance, Transaction Costs and 40% Cash Election by Seller upon Closing of Business Combination on December 20, 2019 | |||||||||||||||||
BPGIC | Twelve Seas | Pubco | Pro Forma Adjustments | Pro Forma Balance Sheet | ||||||||||||||||
EQUITY AND LIABILITIES | ||||||||||||||||||||
Equity: | ||||||||||||||||||||
Preferred shares, $0.0001 par value; 2,000,000 shares authorized; no shares issued and outstanding | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Ordinary shares, $0.0001 par value; 200,000,000 shares authorized; 6,120,045 shares (excluding 20,658,955 shares subject to possible redemption) and 6,351,330 shares (excluding 20,427,670 shares subject to possible redemption) outstanding at September 30, 2019 and December 31, 2018, respectively | — | 612 | — | (104 | )(5) | (9,152 | ) | |||||||||||||
212 | (6) | |||||||||||||||||||
(9,872 | )(7) | |||||||||||||||||||
Share capital | 1,361,285 | — | 1 | (1,361,286 | )(7) | — | ||||||||||||||
Owners’ accounts | 80,363,942 | — | — | — | 80,363,942 | |||||||||||||||
Share subscription receivable | — | — | (1 | ) | 1 | (7) | — | |||||||||||||
Additional paid-in capital | — | 881,714 | — | 31,232,313 | (4) | 24,376,924 | ||||||||||||||
104 | (5) | |||||||||||||||||||
(212 | )(6) | |||||||||||||||||||
(7,736,995 | )(7) | |||||||||||||||||||
Statutory reserve | 680,643 | — | — | — | 680,643 | |||||||||||||||
Retained earnings (accumulated losses) | 23,171,540 | 4,117,675 | (128,098 | ) | 712,992 | (1) | 17,631,794 | |||||||||||||
(1,624,640 | )(2) | |||||||||||||||||||
(4,117,675 | )(7) | |||||||||||||||||||
(4,500,000 | )(8) | |||||||||||||||||||
Total equity | 105,577,410 | 5,000,001 | (128,098 | ) | 12,594,838 | 123,044,151 |
2
PRO FORMA COMBINED STATEMENT OF FINANCIAL POSITION AS OF SEPTEMBER 30, 2019
(UNAUDITED) (Continued)
(A) | (B) | (C) | Reflecting Actual Redemptions, Trust Account Balance, Transaction Costs and 40% Cash Election by Seller upon Closing of Business Combination on December 20, 2019 | |||||||||||||||||
BPGIC | Twelve Seas | Pubco | Pro Forma Adjustments | Pro Forma Balance Sheet | ||||||||||||||||
Noncurrent liabilities: | ||||||||||||||||||||
Provision for employees’ end of service benefits | 9,485 | — | — | — | 9,485 | |||||||||||||||
Lease liability | 28,163,824 | — | — | — | 28,163,824 | |||||||||||||||
Ordinary shares subject to possible redemption | — | 206,589,550 | * | — | (206,589,550 | )(4) | — | |||||||||||||
Total non-current liabilities | 28,173,309 | 206,589,550 | — | (206,589,550 | ) | 28,173,309 | ||||||||||||||
Current liabilities: | ||||||||||||||||||||
Accounts payable, accruals and other payables | 16,497,132 | 185,620 | 128,098 | (185,620 | )(3) | 16,625,230 | ||||||||||||||
Deferred legal fees | — | 562,303 | — | (562,303 | )(3) | — | ||||||||||||||
Deferred business marketing fees | — | — | — | 1,500,000 | (8) | 1,500,000 | ||||||||||||||
Due to related parties | — | 71,672 | — | (71,672 | )(3) | — | ||||||||||||||
Sponsor loans | — | 500,000 | — | 265,000 | (9) | 765,000 | ||||||||||||||
Term loans | 92,559,028 | — | — | — | 92,559,028 | |||||||||||||||
Derivative financial instruments | 1,674,676 | — | — | — | 1,674,676 | |||||||||||||||
Lease liability | 2,336,457 | — | — | — | 2,336,457 | |||||||||||||||
Total current liabilities | 113,067,293 | 1,319,595 | 128,098 | 945,405 | 115,460,391 | |||||||||||||||
Commitments and Contingencies | ||||||||||||||||||||
TOTAL LIABILITIES | 141,240,602 | 207,909,145 | 128,098 | (205,644,145 | ) | 143,633,700 | ||||||||||||||
TOTAL EQUITY AND LIABILITIES | $ | 246,818,012 | $ | 212,909,146 | $ | — | $ | (193,049,307 | ) | $ | 266,677,851 |
3
Pro Forma Adjustments to the Unaudited Combined Statement of Financial Position
(A) | Derived from the unaudited statement of financial position of BPGIC as of June 30, 2019. |
(B) | Derived from the unaudited balance sheet of Twelve Seas as of September 30, 2019, as adjusted for the reclassification of Twelve Seas’ ordinary shares subject to Redemption as non-current liabilities under IFRS due to the nature of the ordinary shares subject to Redemption. |
(C) | Derived from the audited consolidated statement of financial position of Pubco as of June 30, 2019. |
(1) | To reflect income earned from the trust account and the release of cash from investments held in the trust account. |
(2) | To record the payment of professional fees related to the Merger. |
(3) | To record the payment of accounts payable, deferred legal fees, and advances from related parties. |
(4) | To reflect actual redemption of 16,997,181 shares into cash by Twelve Seas stockholders on consummation of the Merger at an approximate redemption price of $10.32 per share. |
(5) | To reflect the cancellation of 1,035,000 Founder Shares. |
(6) | To reflect the issuance of shares converted from rights on consummation of the Merger. |
(7) | To reflect 40% Cash Election by the Seller and recapitalization of BPGIC through the contribution of the share capital in BPGIC to Twelve Seas and the issuance of 98,718,035 shares of Common Stock and the elimination of the historical accumulated deficit of Twelve Seas, the accounting acquiree. |
(8) | To reflect the partial payment of the final business marketing fees and deferral of the remaining portion. |
(9) | To reflect the actual amount of sponsor loan that was drawn down in pursuant to the unsecured promissory note issued by Twelve Seas to the Sponsor on October 21, 2019. |
4
PRO FORMA COMBINED STATEMENT OF PROFIT OR LOSS
NINE MONTHS ENDED SEPTEMBER 30, 2019
(UNAUDITED)
(A) | (B) | (C) | Reflecting Actual Redemptions, Trust Account Balance, Transaction Costs and 40% Cash Election by Seller upon Closing of Business Combination on December 20, 2019 | |||||||||||||||||
BPGIC | Twelve Seas | Pubco | Pro Forma Adjustments | Pro Forma Income Statement | ||||||||||||||||
Revenue | $ | 33,064,659 | $ | — | $ | — | $ | — | $ | 33,064,659 | ||||||||||
Direct costs | 7,419,783 | — | — | — | 7,419,783 | |||||||||||||||
Gross profit (loss) | 25,644,876 | — | — | — | 25,644,876 | |||||||||||||||
General and administrative expenses | 1,702,949 | 1,304,512 | 128,098 | (1,077,841 | )(2) | 2,057,718 | ||||||||||||||
Changes in fair value of derivative financial instruments | 1,674,676 | — | — | — | 1,674,676 | |||||||||||||||
Finance costs | 5,260,677 | — | — | — | 5,260,677 | |||||||||||||||
Dividend Income | — | 2,000,881 | — | — | 2,000,881 | |||||||||||||||
Interest income | — | 1,616,472 | — | (1,616,472 | )(1) | — | ||||||||||||||
Net income (loss) | $ | 17,006,574 | $ | 2,312,841 | $ | (128,098 | ) | $ | (538,631 | ) | $ | 18,652,686 | ||||||||
Weighted average shares outstanding | ||||||||||||||||||||
basic and diluted | 26,729,000 | 1 | 87,985,254 | |||||||||||||||||
Net income (loss) per share basic and diluted | $ | $ | 0.09 | $ | (128,098 | ) | $ | 0.21 |
Forma Adjustments to the Unaudited Combined Statement of Profit or Loss
(In USD thousands, except share and per share amounts)
(A) | Derived from the unaudited statement of profit or loss of BPGIC for the nine months ended June 30, 2019. |
(B) | Derived from the unaudited statement of operations of Twelve Seas for the period from January 1, 2019 through September 30, 2019. |
(C) | Derived from the audited consolidated statement of comprehensive income of Pubco for the period from Pubco’s inception on April 12, 2019 to June 30, 2019. |
(1) | Represents an adjustment to eliminate interest income held in the Trust Account as of the beginning of the period. |
(2) | Represents an adjustment to eliminate direct costs related to the Merger. |
5
PRO FORMA COMBINED STATEMENT OF PROFIT OR LOSS
YEAR ENDED DECEMBER 31, 2018
(UNAUDITED)
(A) | (B) | Reflecting Actual Redemptions, Trust Account Balance, Transaction Costs and 40% Cash Election by Seller upon Closing of Business Combination on December 20, 2019 | ||||||||||||||
BPGIC | Twelve Seas | Pro Forma Adjustments | Pro Forma Income Statement | |||||||||||||
Revenue | $ | 35,839,268 | $ | — | $ | — | $ | 35,839,268 | ||||||||
Direct costs | 9,607,360 | — | — | 9,607,360 | ||||||||||||
Gross profit (loss) | 26,231,908 | — | — | 26,231,908 | ||||||||||||
General and administrative expenses | 2,029,260 | 394,961 | (54,322 | )(2) | 2,369,899 | |||||||||||
Changes in fair value of derivative financial instruments | 1,190,073 | — | — | 1,190,073 | ||||||||||||
Finance costs | 6,951,923 | — | — | 6,951,923 | ||||||||||||
Interest income | — | 2,228,308 | (2,228,308 | )(1) | — | |||||||||||
Net income (loss) | $ | 16,060,652 | $ | 1,833,347 | $ | (2,173,986 | ) | $ | 15,720,013 | |||||||
Weighted average shares outstanding | ||||||||||||||||
basic and diluted | 16,197,597 | 85,628,070 | ||||||||||||||
Net income (loss) per share basic and diluted | $ | $ | 0.11 | $ | 0.18 |
Pro Forma Adjustments to the Unaudited Combined Statement of Profit or Loss
(In USD thousands, except share and per share amounts)
(A) | Derived from the audited statement of comprehensive income of BPGIC for the year ended December 31, 2018. |
(B) | Derived from the audited statement of operations of Twelve Seas for the year ended December 31, 2018. |
(1) | Represents an adjustment to eliminate interest income held in the Trust Account as of the beginning of the period. |
(2) | Represents an adjustment to eliminate direct costs related to the Merger. |
6
Weighted average shares outstanding-basic and diluted are calculated as follows:
For the nine months ended September 30, 2019
Reflecting Actual Redemptions, Trust Account Balance, Transaction Costs and 40% Cash Election by Seller upon Closing of Business Combination on December 20, 2019 | ||||
Unaudited | ||||
Weighted average shares calculation, basic and diluted | ||||
Twelve Seas weighted average shares outstanding | 26,729,000 | |||
Twelve Seas forfeited Sponsor shares | (1,035,000 | ) | ||
Twelve Seas Sponsor shares put in escrow | (1,552,500 | ) | ||
Twelve Seas rights converted to shares | 2,122,900 | |||
Twelve Seas shares redeemed by cash | (16,997,181 | ) | ||
Twelve Seas shares issued in the Merger | 78,718,035 | |||
Weighted average shares outstanding | 87,985,254 | |||
Percent of shares owned by BPGIC’s holders | 89.47 | % | ||
Percent of shares owned by Twelve Seas shareholders | 10.53 | % |
Reflecting Actual Redemptions, Trust Account Balance, Transaction Costs and 40% Cash Election by Seller upon Closing of Business Combination on December 20, 2019 | ||||
Unaudited | ||||
Weighted average shares calculation, basic and diluted | ||||
Existing BPGIC holders | 78,718,035 | |||
Twelve Seas holders | 9,267,219 | |||
Weighted average shares outstanding | 87,985,254 |
7
Weighted average shares outstanding-basic and diluted are calculated as follows:
For the year ended December 31, 2018
Reflecting Actual Redemptions, Trust Account Balance, Transaction Costs and 40% Cash Election by Seller upon Closing of Business Combination on December 20, 2019 | ||||
Unaudited | ||||
Weighted average shares calculation, basic and diluted | ||||
Twelve Seas weighted average shares outstanding | 16,197,597 | |||
Twelve Seas forfeited Sponsor shares | (969,164 | ) | ||
Twelve Seas Sponsor shares put in escrow | (1,453,747 | ) | ||
Twelve Seas rights converted to shares | 2,122,900 | |||
Twelve Seas shares redeemed by cash | (8,987,551 | ) | ||
Twelve Seas shares issued in the Merger | 78,718,035 | |||
Weighted average shares outstanding | 85,628,070 | |||
Percent of shares owned by BPGIC’s holders | 91.93 | % | ||
Percent of shares owned by Twelve Seas shareholders | 8.07 | % |
Reflecting Actual Redemptions, Trust Account Balance, Transaction Costs and 40% Cash Election by Seller upon Closing of Business Combination on December 20, 2019 | ||||
Unaudited | ||||
Weighted average shares calculation, basic and diluted | ||||
Existing BPGIC holders | 78,718,035 | |||
Twelve Seas holders | 6,910,035 | |||
Weighted average shares outstanding | 85,628,070 |
8