As
filed with the U.S. Securities and Exchange Commission on November 19, 2021.
Registration No. 333-______
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-1
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
FTAC
Emerald Acquisition Corp.
(Exact name of registrant as specified in its charter)
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Delaware
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6770
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86-2170416
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(State or other jurisdiction of
incorporation or organization)
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(Primary Standard Industrial
Classification Code Number)
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(I.R.S. Employer
Identification Number)
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2929 Arch Street, Suite 1703
Philadelphia, PA 19104
(215) 701-9555
(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices)
Bracebridge H. Young, Jr., President and
Chief Executive Officer
FTAC Emerald Acquisition Corp.
2929 Arch Street, Suite 1703
Philadelphia, PA 19104
(215) 701-9555
(Name, address, including zip code, and telephone number, including area code, of agent for service)
Copies to:
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Ari Edelman, Esq.
Reed Smith LLP
599 Lexington Avenue, 22nd Floor
New York, NY 10022
(212) 549-4234
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Michael Blankenship, Esq.
Dominick DeChiara, Esq.
Winston & Strawn LLP
800 Capitol Street, Suite 2400
Houston, TX 77002
(713) 651-2600
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Approximate
date of commencement of proposed sale to the public: As soon as practicable after the effective date of this registration statement.
If
any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415
under the Securities Act of 1933 check the following box. ¨
If
this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act,
please check the following box and list the Securities Act registration statement number of the earlier effective registration statement
for the same offering. ¨
If
this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box
and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ¨
If
this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box
and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ¨
Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company.
See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company”
and “emerging growth company” in Rule 12b-2 of the Exchange Act.
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Large accelerated filer
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Accelerated filer
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¨
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Non-accelerated filer
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x
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Smaller reporting company
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x
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Emerging growth company
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x
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If an emerging growth company, indicate by
check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting
standards provided pursuant to Section 7(a)(2)(B) of the Securities Act.¨
CALCULATION OF REGISTRATION FEE
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Title of Each Class of Security Being Registered
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Amount Being
Registered
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Proposed
Maximum
Offering
Price per
Security(1)
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Proposed
Maximum
Aggregate
Offering
Price(1)
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Amount
of
Registration
Fee
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Units,
each consisting of one share of Class A common stock, $0.0001 par value, and one-half of one redeemable warrant(2)
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25,300,000 Units
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$
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10.00
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$
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253,000,000
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$
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23,453.10
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Shares
of Class A common stock included as part of the Units(3)
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25,300,000 Shares
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—
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—
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—
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(4)
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Redeemable
warrants included as part of the Units(3)
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12,650,000 Warrants
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—
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—
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—
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(4)
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Shares
of Class A common stock underlying redeemable warrants(3)
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12,650,000 Shares
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$
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11.50
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$
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145,475,000
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$
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13,485.54
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Total
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$
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398,475,000
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$
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36,938.64
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(1)
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Estimated solely for the purpose of calculating the registration
fee.
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(2)
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Includes 3,300,000 units, consisting of 3,300,000 shares of
Class A common stock and 1,650,000 redeemable warrants that may be issued upon exercise of a 45-day option granted to the underwriter
to cover over-allotments, if any.
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(3)
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Pursuant to Rule 416, there are also being registered an
indeterminable number of additional securities as may be issued to prevent dilution resulting from stock splits, stock dividends or similar
transactions.
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(4)
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No fee pursuant to Rule 457(g) under the Securities
Act.
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The Registrant
hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the Registrant shall
file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with
Section 8(a) of the Securities Act of 1933, as amended, or until the registration statement shall become effective on such date
as the Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.
The information in this prospectus is not complete
and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission
is effective. This prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any
jurisdiction where the offer or sale is not permitted.
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PRELIMINARY PROSPECTUS (Subject to Completion)
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Dated November 19, 2021
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$220,000,000
FTAC Emerald Acquisition Corp.
22,000,000 Units
FTAC Emerald Acquisition
Corp. (formerly known as Emerald ESG Acquisition Corp.) is a blank check company incorporated as a Delaware corporation for the purpose
of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with
one or more businesses, which we refer to throughout this prospectus as our initial business combination.
This is an initial public offering of our securities.
We are offering 22,000,000 units. Each unit has an offering price of $10.00 and consists of one share of our Class A common stock
and one-half of one redeemable warrant. Each whole warrant entitles the holder to purchase one whole share of our Class A common
stock at a price of $11.50 per share, subject to adjustment as described in this prospectus, and only whole warrants are exercisable.
The warrants will become exercisable 30 days after the consummation of our initial business combination and will expire five years
after the consummation of our initial business combination or earlier upon redemption or our liquidation, as described in this prospectus.
No fractional warrants will be issued upon separation of the units and only whole warrants will trade. We have also granted the underwriter
a 45-day option to purchase up to an additional 3,300,000 units to cover overallotments, if any.
We will provide our public
stockholders with the opportunity to redeem all or a portion of their shares of our Class A common stock upon the consummation of
our initial business combination at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the trust account
described below, including interest earned on the trust account (net of taxes payable), divided by the number of then outstanding shares
of Class A common stock that were sold as part of the units in this offering, which we refer to as our public shares, subject to
the limitations described in “Proposed Business — Effecting Our Initial Business Combination.” If we are unable
to consummate a business combination within 18 months from the completion of this offering, or 21 months from the closing of this offering
if we have executed a letter of intent, agreement in principle or definitive agreement for our initial business combination within 18
months from the closing of this offering, we will redeem the public shares at a per-share price, payable in cash, equal to the aggregate
amount then on deposit in the trust account, including interest (less up to $100,000 of interest to pay dissolution expenses and which
interest shall be net of taxes payable) divided by the number of then outstanding public shares, subject to applicable law and as further
described herein.
Our sponsor, Emerald
ESG Sponsor, LLC, has committed to purchase 890,000 placement units (or 990,000 if the underwriter’s overallotment option is exercised
in full) at a price of $10.00 per unit ($8,900,000 or $9,900,000 if the underwriter’s overallotment option is exercised in full)
in a private placement that will close simultaneously with the closing of this offering. Each placement unit will be identical to the
units sold in this offering, except as described in this prospectus. We refer to these units as the placement units throughout this prospectus.
We will receive an aggregate of $8,900,000 (or $9,900,000 if the underwriter’s overallotment option is exercised in full)
from these sales of placement units.
On June 2, 2021,
our initial holders purchased 7,992,750 founder shares for an aggregate purchase price of $25,000, and on October 14, 2021, we effected
a 1.1014-for-1.0 stock split of our common stock, so that our sponsor owned an aggregate of 8,803,333 shares of our Class B common
stock (up to 1,140,000 shares of which are subject to forfeiture depending on the extent to which the underwriter’s overallotment
option is exercised). On November 12, 2021, we effected a 0.9955-for-1.0 stock split of our common stock, so that our sponsor owns
an aggregate of 8,763,333 shares of our Class B common stock (up to 1,133,333 shares of which are subject to forfeiture depending
on the extent to which the underwriter’s overallotment option is exercised). We refer to these shares of Class B common stock
as the founder shares throughout this prospectus. The shares of Class B common stock will automatically convert into shares of Class A
common stock at the time of our initial business combination on a one-for-one basis, subject to adjustment as provided herein. Holders
of our Class B common stock will have the right to elect all of our directors prior to the consummation of our initial business
combination. On any other matter submitted to a vote of our stockholders, holders of our Class B common stock and holders of our
Class A common stock will vote together as a single class, except as required by applicable law or stock exchange rule.
Currently, there is no public
market for our units, Class A common stock or warrants. We intend to apply to have our units approved for listing on Nasdaq under
the symbol “__”. Subject to the fulfilment of certain conditions described in “Description of Securities —
Units”, the Class A common stock and warrants comprising the units will begin separate trading on the 52nd day
following the date of this prospectus unless Goldman Sachs & Co. LLC, the sole book-running manager in this offering, informs
us of its decision to allow earlier separate trading. Once the securities comprising the units begin separate trading, we anticipate
the Class A common stock and warrants will be listed on Nasdaq under the symbols “__” and “__,” respectively.
We are an “emerging growth company”
under the federal securities laws and will be subject to reduced public company reporting requirements. Investing in our securities involves
risks. See “Risk Factors” beginning on page 34 of this prospectus. Investors will not be entitled to protections
normally afforded to investors in offerings conducted pursuant to Rule 419 under the Securities Act of 1933, as amended.
Neither the Securities and Exchange Commission
nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete.
Any representation to the contrary is a criminal offense.
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Per Unit
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Total
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Public offering price
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$
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10.00
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$
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220,000,000
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Underwriting discount(1)
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$
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0.55
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$
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12,100,000
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Proceeds to us (before expenses)
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$
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9.45
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$
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207,900,000
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(2)
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(1)
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$0.20 per unit, or $4,400,000 in the aggregate (or $5,060,000 if the underwriter’s
over-allotment option is exercised in full), is payable upon the closing of this offering. The underwriter has agreed to defer until
consummation of our initial business combination $7.7 million of its underwriting commissions (or approximately $8.9 million if the
underwriter’s overallotment option is exercised in full), which equals 3.5% of the gross proceeds from the units sold to the
public, including any units purchased pursuant to the underwriter’s overallotment option. This amount will be placed in the
trust account and will be released to the underwriter only on completion of an initial business combination, as described in this
prospectus. See the section titled “Underwriting” for a description of the compensation payable to the underwriter.
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(2)
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Of
the proceeds we receive from this offering and a simultaneous private placement of units described in “Use of Proceeds,”
$222,200,000 ($10.10 per share), or $255,530,000 ($10.10 per share) if the underwriter exercises its overallotment option in full,
will be deposited into a trust account in the United States maintained by Continental Stock Transfer & Trust Company,
acting as trustee. For a description of the trust account and the use of the funds in such account and interest generated thereby,
see “Use of Proceeds” and “Proposed Business.”
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The underwriter is offering the units on a firm
commitment basis. The underwriter expects to deliver the units against payment on or about ,
2021.
Sole Book-Running Manager
Goldman Sachs &
Co. LLC
The date of this prospectus is _______,
2021.
TABLE OF CONTENTS
You should rely only on the information contained
in this prospectus. We have not, and the underwriter has not, authorized any other person to provide you with different information. If
anyone provides you with different or inconsistent information, you should not rely on it. We are not, and the underwriter is not, making
an offer to sell these securities in any jurisdiction where the offer or sale is not permitted. You should assume that the information
appearing in this prospectus is accurate only as of the date on the front cover of this prospectus. Our business, financial condition,
results of operation and prospects may have changed since that date.
SUMMARY
This summary provides an overview
of selected information contained elsewhere in this prospectus and does not contain all of the information you should consider before
investing in our securities. You should carefully read the prospectus in its entirety before investing in our securities, including the
information discussed under “Risk Factors” beginning on page 34 and our financial statements and notes thereto
that appear elsewhere in this prospectus. Unless otherwise stated in this prospectus, all the information in this prospectus assumes that
the underwriter will not exercise its overallotment option.
As used in this prospectus:
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references
to “we,” “us,” “company” or “our company” are to FTAC Emerald Acquisition Corp.,
formerly known as Emerald ESG Acquisition Corp.;
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references to our “sponsor” are collectively
to Emerald ESG Sponsor, LLC, a Delaware limited liability company and Emerald ESG Advisors, LLC, a Delaware limited liability company.
The manager of Emerald ESG Sponsor, LLC and Emerald ESG Advisors, LLC is Betsy Cohen;
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references to “initial holders” or “initial
stockholders” are to our sponsor and any other holders of our founder shares and placement shares immediately prior to this offering;
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references
to “founder shares” are to 8,763,333 shares of our Class B common stock held by our initial stockholders, which
includes an aggregate of 1,133,333 founder shares that are subject to forfeiture to the extent that the overallotment option is not
exercised by the underwriter;
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references to our “management” or our “management
team” refer to our officers;
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references to our “public shares” are to shares
of our Class A common stock sold as part of the units in this offering (whether they are purchased in this offering or thereafter
in the open market);
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references to “public stockholders” refer to
the holders of our public shares, which may include members of our management team if and to the extent they purchase public shares,
provided that any such holder’s status as a “public stockholder” shall only exist with respect to such public shares;
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references
to “private placement” refer to the private placement of 890,000 units (or 990,000 if the underwriter’s overallotment
option is exercised in full) being purchased by our sponsor, which will occur simultaneously with the completion of this offering,
at a purchase price of $10.00 per unit for a total purchase price of $8,900,000 (or $9,900,000 if the underwriter’s overallotment
option is exercised in full);
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references
to “placement units” are to the 890,000 units (or 990,000 if the underwriter’s overallotment option is exercised
in full) being purchased by our sponsor in the private placement, each placement unit consisting of one placement share and one-half
of one placement warrant;
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references
to “placement shares” are to an aggregate of 890,000 shares (or 990,000 if the underwriter’s overallotment option
is exercised in full) of our Class A common stock included within the placement units being purchased by our sponsor in the
private placement; and
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references
to “placement warrants” are to warrants to purchase an aggregate of 445,000 shares (or 495,000 if the underwriter’s
overallotment option is exercised in full) of our Class A common stock included within the placement units being purchased by
our sponsor in the private placement.
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references to “CCM” are to Cohen & Company Capital Markets, a division of J.V.B. Financial Group, LLC,
a broker dealer subsidiary of Cohen & Company Inc. (in which our Chairman’s son is also Chairman of the Board and a controlling
shareholder). Affiliates of CCM also have and manage investment vehicles with a passive investment in the sponsor, any of which may purchase
units in this offering.
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Each unit consists of one share
of Class A common stock and one-half of one warrant. Each whole warrant entitles the holder thereof to purchase one share of our
Class A common stock at a price of $11.50 per share, subject to adjustment as described in this prospectus, and only whole warrants
are exercisable. No fractional warrants will be issued upon separation of the units and only whole warrants will trade. Accordingly, unless
you purchase at least four units, you will not be able to receive or trade a whole warrant.
General
Our Company
We are a blank check company formed for the purpose
of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with
one or more businesses, which we refer to throughout this prospectus as our initial business combination. We have not identified any business
combination target and we have not, nor has anyone on our behalf, initiated any substantive discussions, directly or indirectly, with
any business combination target.
We intend to focus our search for a target business
on companies that provide opportunities for attractive risk-adjusted returns while facilitating and advancing a sustainable future. In
particular, we will seek companies with meaningful potential for delivering financial, social, and environmental value and whose forward
development path would benefit from the ability to harness the power of public capital markets to expand on these objectives.
We are guided by the simple premise that great
companies create robust value for all corporate stakeholders. Those stakeholders include investors, as well as employees, customers, suppliers,
civil society, the communities in which they operate and nature itself. As a result, our goal is to find a purpose-driven company with
a clear path towards furthering systems, processes, and products that meet today’s fundamental environmental, social, and business
challenges. We will look for alignment between a company’s core business capabilities and its positive social and environmental
impact, and we will seek opportunities where deepening that alignment can generate increased value. We aim to partner with leaders who
have a bold vision for the future, solicit ongoing input from stakeholders and understand the importance of responding to changing economic,
social, and environmental dynamics.
We intend to target companies that achieve best
in class standards in environmental, social, and governance (ESG) practices, as we view this as an essential tool to measure long-term
value creation for stockholders and broader stakeholders. We also intend to seek companies that interweave social initiatives and environmental
goals directly into their business plans and corporate organizational structures. We believe that we will create additional value by targeting
companies that offer products or solutions that improve environmental outcomes, advance progress toward greater diversity, equity, and
inclusion, and align with broad pro-social frameworks such as the UN Sustainable Development Goals.
With these principles in mind and with our unique
backgrounds at the intersection of finance, social impact, and environmental stewardship, we believe that our management team is well
suited to execute our plan, grounded in a philosophy that seeks to generate positive social and environmental returns for stakeholders
while delivering stockholder value.
Sponsor Partnership with FinTech Masala
Emerald ESG Sponsor, LLC is a partnership between
FinTech Masala, LLC (“Fintech Masala”) and our Vice Chairman, Mark Tercek, and Bracebridge Young Jr., our President
and CEO. Additionally, our Chairman of the Board, Betsy Z. Cohen, is also the Chairman of the board of directors of FinTech Masala. Emerald
ESG Sponsor, LLC unites the knowledge and experience of FinTech Masala as a technology investor and SPAC sponsor with the entrepreneurial
and ESG experience of our Vice Chairman and President and CEO.
Fintech Masala
FinTech Masala specializes in providing growth
capital to technology and financial services technology companies via special purpose acquisition vehicles and venture investments. The
FinTech Masala team is comprised of principals and advisers with extensive experience in operating public and private companies in the
technology and financial services sectors, mergers and acquisitions and venture investors. As of July 2021, the Managing Members
of FinTech Masala have been affiliated with the sponsor for FinTech Acquisition Corp., FinTech Acquisition Corp. II, Fintech Acquisition
Corp. III, Fintech Acquisition Corp. IV, Fintech Acquisition Corp. V, Fintech Acquisition Corp. VI, FTAC Olympus Acquisition Corp., FTAC
Athena Acquisition Corp., FTAC Hera Acquisition Corp., and FTAC Parnassus Acquisition Corp., (together the “FinTech Masala SPACs”).
Of the FinTech Masala SPACs, five have consummated
initial business combinations (FinTech Acquisition Corp., FinTech Acquisition Corp. II, FinTech Acquisition Corp. III, FinTech Acquisition
Corp. IV and FTAC Olympus Acquisition Corp.) and two others have announced an agreement for initial business combinations that have yet
to close (FinTech Acquisition Corp. V and FTAC Athena Acquisition Corp.).
Several members of Fintech Masala’s management
team, including our Chairman, have served or are serving as executive officers and/or directors for the Fintech Masala SPACs. We believe
that potential sellers of target businesses will view the fact that members of our board of directors and management team have successfully
closed multiple business combinations with vehicles similar to our company as a positive factor in considering whether or not to enter
into a business combination with us. However, past performance is not a guarantee of success with respect to any business combination
we may consummate.
Experienced Senior Management
Our management team is led by Betsy Z. Cohen,
our Chairman of the Board. Ms. Cohen has substantial experience with blank check companies, having served or currently serving as
Chairman of the board for nine blank check companies, five of which have consummated business transactions, two of which have announced
intended business transactions, and two of which are actively searching for business transactions. We believe that potential sellers of
target businesses will view this experience as a positive factor in considering whether or not to enter into a business combination with
us and we believe the Ms. Cohen’s connections and experience will provide a strong pipeline of potential acquisitions to our
Company.
Mark Tercek will be our Vice Chairman of the Board
and Bracebridge H. Young, Jr. is our President and CEO, and between the two of them, they have substantial experience as investors
and operators in the ESG sector, as well broad array of experience in mergers and acquistions and capital markets. We believe that potential
sellers of target businesses will view this experience as a positive factor in considering whether or not to enter into a business combination
with us and we believe the Mr. Tercek’s and Mr. Young’s connections in the ESG sector will provide a strong pipeline
of potential acquisitions to our Company.
Business Strategy
We will seek to capitalize on the significant
ESG experience and contacts of Betsy Z. Cohen, our Chairman of the Board, Mark Tercek, our Vice Chairman of the Board, Bracebridge H.
Young, Jr., our President and CEO, and Doug Listman, our Chief Financial Officer, and our board of directors, to identify, evaluate
and acquire a business with a core commitment to providing social, financial, and environmental value operating in sectors such as: clean/renewable
energy; water sustainability; agricultural technology; shared economy software; and next generation mobility (the “Target Sectors”),
although we may pursue a business combination outside of those sectors. If we elect to pursue an investment outside of those sectors,
our management’s expertise related to those sectors may not be directly applicable to its evaluation or operation, and the information
contained in this prospectus regarding that sector might not be relevant to an understanding of the business that we elect to acquire.
FinTech Masala Experience and Involvement with
other SPACs
Several members of the Fintech Masala team have served as executive
officers of the following blank check companies:
Fintech Acquisition Corp. FinTech
Acquisition Corp., or FinTech I, was a blank check company that raised $100.0 million in its initial public offering in February 2015
and completed its initial business combination when it acquired FTS Holding Corporation in July 2016, which we refer to as the FinTech I
Acquisition. See “Management — FinTech I” for information regarding FinTech I and the Fintech I
Acquisition.
Fintech Acquisition Corp. II.
FinTech Acquisition Corp. II, or FinTech II, was a blank check company that raised $175.0 million in its initial public offering
in January 2017 and completed its initial business combination when it acquired Intermex Holdings II in July 2018, which we
refer to as the FinTech II Acquisition, in connection with which FinTech II changed its name to International Money Express, Inc.
The common stock of International Money Express, Inc. is currently traded on the NASDAQ Global Market under the symbol “IMXI.”
See “Management — FinTech II” for information regarding FinTech II and the Fintech II Acquisition.
Fintech Acquisition Corp. III. FinTech
Acquisition Corp. III, or FinTech III, was a blank check company that raised $345.0 million in its initial public offering in
November 2018 and completed its initial business combination with Paya, Inc. in October 2020, which we refer to as the
FinTech III Acquisition. The common stock of Paya Holdings, Inc. is currently traded on the NASDAQ Global Market under the symbol
“PAYA.” See “Management — FinTech III” for information regarding FinTech III and the FinTech III
Acquisition.
Fintech Acquisition Corp. IV. Fintech
Acquisition Corp. IV, or Fintech IV, was a blank check company that raised $230.0 million in its initial public offering in September 2020
and completed its initial business combination with Perella Weinberg Partners in June 2021, which we refer to as the Fintech IV Acquisition.
The common stock of Perella Weinberg Partners is currently traded on the NASDAQ Global Market as “PWP”. See “Management
— Fintech IV” for information regarding Fintech IV and the Fintech IV Acquisition.
FTAC Olympus Acquisition Corp. FTAC
Olympus Acquisition Corp. (NASDAQ: FTOC), or FTAC Olympus, was blank check company that raised $754.7 million in its initial public
offering in August 2020 and completed its initial business combination with Payoneer Inc., resulting in a new public entity named
Payoneer Global, Inc., which we refer to as the FTAC Olympus Acquisition. The common stock of Payoneer Global Inc. is currently traded
on the NASDAQ Global Market as “PAYO”. See “Management — FTAC Olympus” for information regarding FTAC Olympus
and the FTAC Olympus Acquisition.
FinTech Acquisition Corp.V. FinTech Acquisition Corp. V (NASDAQ:
FTCV), or FinTech V, is a blank check company that raised $250.0 million in its initial public offering in December 2020. On
March 16, 2021, FinTech V entered into an Agreement and Plan of Merger (the “FTV Merger Agreement”) among eToro Group
Ltd., a company organized under the laws of the British Virgin Islands (“eToro”), Buttonwood Merger Sub Corp., a Delaware
corporation and a direct, wholly-owned subsidiary of eToro (“Merger Sub”), and FinTech V, which provides for, among other
things, the merger of Merger Sub with and into FinTech V (the “FTV Merger”), with FinTech V surviving as a wholly-owned subsidiary
of eToro (the “Business Combination”). The Fintech Acquisition Corp. V Business Combination has yet to close. See “Management
— Fintech Acquisition Corp V” for more information.
FTAC
Athena Acquisition Corp. FTAC Athena Acquisition Corp. (NASDAQ: FTAA), or FTAC Athena, is a blank check company that raised $250.0 million
in its initial public offering in February 2021. On August 3, 2021, FTAC Athena entered into a Business Combination Agreement
(the “Business Combination Agreement”) by and between the FTAC Athena and Pico Quantitative Trading Holdings LLC (“Pico”),
pursuant to which, among other things, FTAC Athena will acquire certain interests in Pico, which will become jointly owned by the FTAC
Athena and the existing members of Pico and following the closing will serve as the Company’s operating partnership as part of an
Up-C structure. This transaction has yet to close. See “Management —
FTAC Athena Acquisition Corp.” for more information.
FTAC Hera Acquisition Corp. FTAC
Hera Acquisition Corp. (NASDAQ: HERA), or FTAC Hera, a blank check company that raised approximately $850 million in its initial
public offering in March 2021.
FTAC Parnassus Acquisition Corp. FTAC
Parnassus Acquisition Corp. (NASDAQ: FTPA), or FTAC Parnassus, is a blank check company that raised $250.0 million in its initial
public offering in March 2021.
Fintech Acquisition Corp. VI. Fintech
Acquisition Corp. VI (NASDAQ: FTVI), or FinTech VI, is a blank check company that raised $250 million in its initial public offering in
June 2021.
FTAC
Zeus Acquisition Corp. FTAC Zeus Acquisition Corp., or FTAC Zeus, is a blank check company that announced on November 18, 2021
the pricing of its initial public offering of 35,000,000 units at a price of $10.00 per unit, for gross proceeds to the Company at closing
of $350,000,000 (assuming the underwriter’s over-allotment option is not exercised).
We believe that potential sellers of target businesses will view the
fact that members of our board of directors and management team have successfully closed multiple business combinations with vehicles
similar to our company as a positive factor in considering whether or not to enter into a business combination with us. However, past
performance is not a guarantee of success with respect to any business combination we may consummate.
Management Team and Board of Directors
Betsy
Z. Cohen, Chairman. Betsy Z. Cohen has served as Chairman of FTAC Emerald Acquisition Corp., formerly known as
Emerald ESG Acquisition Corp., since April 29, 2021. Since January 2021, she has served as Chairman of the board of directors of
FTAC Hera, since November 2020, she has served as Chairman of the board of directors of FinTech VI, since November 2020, she has
served as Chairman of the board of directors of FTAC Athena, and since June 2019, she has served as Chairman of the board of
directors of FinTech V. She previously served as a director of Metromile, Inc. (NASDAQ: MILE), the successor to INSU II. Ms. Cohen
served as Chairman of FTAC Olympus’s board of directors from November 2020 until June 2021, as Chairman of FinTech IV’s
board of directors from May 2019 until June 2021, as Chairman of FinTech III’s board of directors from March 2017 until
October 2020, and as Chairman of FinTech II’s board of directors from August 2016 until July 2018. She served as a director of
FinTech I and its successor, Card Connect Corp., a provider of payment processing solutions to merchants, from November 2013 until
May 2017, and previously served as Chairman of the board of directors of FinTech I from July 2014 through July 2016 and as FinTech
I’s Chief Executive Officer from July 2014 through August 2014. She served as Chief Executive Officer of Bancorp and its
wholly-owned subsidiary, Bancorp Bank, from September 2000 and Chairman of Bancorp Bank from November 2003, and resigned from these
positions upon her retirement in December 2014. She served as the Chairman of the Board of Trustees and as a trustee of RAIT
Financial Trust, a real estate investment trust, from its founding in August 1997, through her resignation as of December 31, 2010
and served as RAIT’s Chief Executive Officer from 1997 to 2006. Ms. Cohen served as a director of Hudson United Bancorp (a
bank holding company), the successor to JeffBanks, Inc., from December 1999 until July 2000 and as the Chairman of the Jefferson
Bank Division of Hudson United Bank (Hudson United Bancorp’s banking subsidiary) from December 1999 through March 2000. Before
the merger of JeffBanks, Inc. with Hudson United Bancorp in December 1999, Ms. Cohen was Chairman and Chief Executive Officer of
JeffBanks, Inc. from its inception in 1981 and also served as Chairman and Chief Executive Officer of each of its subsidiaries,
Jefferson Bank, which she founded in 1974, and Jefferson Bank New Jersey, which she founded in 1987. From 1985 until 1993, Ms. Cohen
was a director of First Union Corp. of Virginia (a bank holding company) and its predecessor, Dominion Bancshares, Inc. Ms. Cohen also served as a director of Aetna, Inc.
(NYSE: AET), an insurance company, from 1994 until May 2018. Our board has determined that Ms. Cohen’s extensive experience in
the financial services industry generally, and the financial technology industry in particular, as well as extensive experience in
operating financial services companies in a public company environment, qualifies her to serve as a member of our board of
directors.
Mark
Tercek, Director Nominee (Vice Chairman). Mr. Tercek will serve as director
and Vice Chairman of the Board immediately upon the effective date of this prospectus. He is a global conservation leader and financial
professional with expertise in conservation finance, corporate sustainability, and cross-sector collaboration. From 2008 to 2019, Mark
served as CEO of The Nature Conservancy, the largest private conservation organization in the United States. Under Mr. Tercek’s
leadership, The Nature Conservancy launched NatureVest, the impact capital initiative, ran a $7 billion capital fundraising campaign,
and established a permanent department focused on gender, diversity, equity and inclusion (GDEI). Prior to serving as CEO of The Nature
Conservancy, Mr. Tercek served as Managing Director and Partner at Goldman Sachs, where over time he had responsibility for managing
several of the firm’s key units, including Corporate Finance, Real Estate Investment Banking, Equity Capital Markets, and Pine
Street, the firm’s leadership development program. In 2005, he was tapped to develop Goldman Sachs’s environmental strategy
and to lead its Environmental Markets Group. In addition, Mr. Tercek has advised on boards and councils for a number of global organizations,
including the Nicholas Institute for Environmental Policy Solutions at Duke University, the Social Enterprise Initiative at Harvard Business
School, the China Council for International Cooperation on Environment and Development, the Rockefeller Foundation Economic Council on
Planetary Health, Acumen, the AXA Stakeholders Advisory Panel, and Resources for the Future. From 2003 until 2008, Mr. Tercek was on
the finance faculty of New York University’s Stern School of Business. Since 2016, he has served on the Board of Trustees of Williams
College. He is the co-author of the Washington Post and Publisher’s Weekly bestselling book Nature’s Fortune: How Business
and Society Thrive by Investing in Nature. Mr. Tercek earned an M.B.A. from Harvard in 1984 and a B.A. from Williams College in 1979.
Bracebridge
H. Young, Jr., President and Chief Executive Officer. Mr. Young is President and Chief Executive Officer of
Emerald ESG Acquisition Corporation and also serves as Executive Chairman of Arabesque USA, a global asset management firm that specializes
in integrating artificial intelligence and sustainability research into its investment approach. In addition, Mr. Young serves as a member
of the board of advisors of Newmarket Investment Management. Prior to joining Arabesque USA in 2017, Mr. Young served as Chief Executive
Officer at Eclat Impact in 2016. From 2000 through 2015, Mr. Young served as Chief Executive Officer and Partner at Mariner Investment
Group. He joined Mariner directly from Goldman Sachs, where he began on the Commercial Paper trading desk in 1980 and subsequently served
as Head Trader for institutional money market funds, Co-Head of the Money Market Sales and Trading Department in New York, Head of Fixed-Income
activity in Tokyo, Head of Fixed-Income and foreign exchange sales in London, and, finally, Partner and Head of European Debt Capital
Markets in New York. Mr. Young serves as Chairman of the board of directors of Social Finance, Inc., a Boston-based nonprofit organization
dedicated to mobilizing investment capital to drive social change, serves on the boards of directors for Social Progress Imperative,
a non-profit best known for measuring countries’ social and environmental performance, Cultivo, the developer of an investment
platform focused on environmental ventures, and TerViva, an agricultural technology company. Additionally, he is an advisor to Upwell,
technology-enabled water asset company. Mr. Young received a B.A from Bowdoin College in 1977 and an M.B.A. from New York University’s
Stern School of Business in 1983.
Lisa
M. Shalett, Director Nominee. Ms. Shalett is a former Goldman Sachs Partner who now serves on public and private boards,
and is the Founder of Extraordinary Women on Boards, a community of women corporate directors focused on improving board excellence,
modernizing governance, and increasing diversity on boards. Over her 20-year career at Goldman Sachs, from 1995-2015, including 13 years
as a Partner, Ms. Shalett led the Global Japanese Shares business, International Equities Sales & Trading in North America, was Chief
Operating Officer of Global Compliance, Legal and Internal Audit, and from 2010 was Head of Brand Marketing & Digital Strategy, leading
Goldman’s brand during the financial crisis. She became Chief Marketing Officer at millennials-focused media startup Odyssey (2015-2016),
and then joined Brookfield Asset Management as Managing Partner, Head of Strategic Innovation (2018-2019). Ms. Shalett served as a member
of the board of directors of Brookfield Property Partners (Nasdaq: BPY) and its Audit Committee, from 2015-2018 and PerformLine, a private
venture capital-backed company from 2015-2019. Currently, she serves on the boards of directors of PennyMac (NYSE: PFSI, 2020 to present),
and on the Audit Committee and Nominating & Governance Committee, AccuWeather (a private company, 2018 to present) and Chair of the
Marketing Committee, and Bully Pulpit Interactive (a private, private equity-backed company, 2017 to present). Ms. Shalett received a
B.A., summa cum laude, in East Asian Studies from Harvard University and an M.B.A. from Harvard Business School.
Andrew
Hohns, Director Nominee. Since April 2020, Dr. Hohns has served as founding member
and Chief Executive Officer of Newmarket Investment Management, a registered investment advisor managing capital on behalf of institutional
investors worldwide, targeting investments in structured opportunities sourced from a global network of banks and financial institutions.
Newmarket was established in 2020 to acquire and assume management of Mariner Investment Group’s International Infrastructure Finance
Company (IIFC) strategy, a platform co-founded by Dr. Hohns in 2013. He is a regular speaker at various industry conferences, with
special expertise in topics related to infrastructure, securitization, socially responsible investment, impact investment, and development
finance. Prior to joining Mariner, Dr. Hohns was a Managing Director at Cohen & Company. Dr. Hohns serves as Commissioner
on the U.S. Semiquincentennial Commission and as a member of the board of directors of UNICEF USA. He also previously served as a director
of INSU Acquisition Corp. II from September 2020 to February 2021. Dr. Hohns holds a B.S. in Economics from the Wharton
School at the University of Pennsylvania, a Masters in Liberal Arts from the School of Arts and Sciences at the University of Pennsylvania,
and a PhD in Applied Economics and Managerial Sciences from the Wharton School at the University of Pennsylvania.
Therese
Rein, Director Nominee. Therese Rein founded vocational rehabilitation and human services company Ingeus Limited in an
attic office in Brisbane, Australia with AUD 13,000 in 1989. She grew Ingeus to AUD 450 million a year in revenue, with 6,000 colleagues
serving 500,000 people at any one time in 10 countries on four continents (Australia, Europe, Middle East and Asia). She divested Ingeus
in 2014 to the Providence Service Corporation and continues on the advisory board of APM (the current owner of Ingeus). In 2012, she
was named the Ernst and Young Champion Entrepreneur of the Year. Additionally, She was awarded the Australian Human Rights Medal. Ms.
Rein has had the honor of serving Australia as First Lady. Ms. Rein has lived in China, the United States, the United Kingdom, Sweden,
Hong Kong and Australia. She has also served on the Paralympics Advisory Board, the National Apology Foundation, along with numerous
patronages of organizations in disability, street to home housing, food security, indigenous literacy, and the National Portrait Gallery.
Since 2014 Ms. Rein has been on private investment boards, mentoring start up CEO’s and not-for-profit CEO’s. Ms. Rein holds
a degree with Honors in Psychology from Australian National University and has been awarded three honorary doctorates from Griffith University,
University of Western Sydney and Australian National University.
Tensie
Whelan, Director Nominee. Professor Tensie Whelan is Clinical Professor of Business and Society and Director of NYU Stern
School of Business's Center for Sustainable Business, where she brings 25 years of experience working to engage businesses in proactive
and innovative mainstreaming of sustainability. As President of the Rainforest Alliance from June 2000 until September 2015, she led
the organization's substantial growth and established the Rainforest Alliance as an internationally recognized brand. Her previous work
includes serving as executive director of the New York League of Conservation Voters, Vice President of the National Audubon Society,
Managing Editor of Ambio, a journal of the Swedish Academy of Sciences, and as a journalist in Latin America. In 2008 and 2011,
Ms. Whelan was recognized by Ethisphere as one of the 100 Most Influential People in Business Ethics and has served on non-profit boards
and corporate advisory boards such as the Unilever Sustainable Sourcing Advisory Board and currently sits on the InvestIndustrial Acquisition
Corp. board and the advisory boards of Inherent Group, Giant Ventures, and Alo Advisors. She served as Board Member of Aston Martin from
October 2018 until May 2020. Ms. Whelan holds a B.A. from New York University, an M.A from American University, and is a graduate of
the Harvard Business School Owner President Management Program.
We believe that potential sellers of target businesses
will view the fact that Ms. Cohen, Mr. Young, Mr. Tercek, and Mr. Listman have successfully closed multiple business
combinations with vehicles similar to our company as a positive factor in considering whether or not to enter into a business combination
with us. However, past performance is not a guarantee of success with respect to any business combination we may consummate.
Initial Business Combination
Nasdaq rules require that we must complete
one or more business combinations having an aggregate fair market value of at least 80% of the value of the assets held in the trust account
(excluding the deferred underwriting commissions and taxes payable on the interest earned on the trust account) at the time of our signing
a definitive agreement in connection with our initial business combination. We refer to this as the 80% of fair market value test. If
the initial business combination involves more than one target business, the 80% fair market value test will be based on the aggregate
value of all of the transactions and we will treat the target businesses together as the initial business combination for purposes of
a tender offer or for seeking stockholder approval, as applicable. Our board of directors will make the determination as to the fair market
value of our initial business combination. If our board of directors is not able to independently determine the fair market value of our
initial business combination, we will obtain an opinion from an independent investment banking firm or another independent entity that
commonly renders valuation opinions with respect to the satisfaction of such criteria. While we consider it unlikely that our board of
directors will not be able to make an independent determination of the fair market value of our initial business combination, it may be
unable to do so if it is less familiar or experienced with the business of a particular target or if there is a significant amount of
uncertainty as to the value of a target’s assets or prospects. Notwithstanding the foregoing, if we are not then listed on the Nasdaq
for whatever reason, we would no longer be required to meet the foregoing 80% fair market value test.
We will file a Registration Statement on Form 8-A
with the SEC to voluntarily register our securities under Section 12 of the Securities Exchange Act of 1934, as amended, or the Exchange
Act. As a result, we will be subject to the rules and regulations promulgated under the Exchange Act. We have no current intention
of filing a Form 15 to suspend our reporting or other obligations under the Exchange Act prior or subsequent to the consummation
of our initial business combination.
We anticipate structuring our initial business
combination either (i) in such a way so that the post-transaction company in which our public stockholders own shares will own or
acquire 100% of the equity interests or assets of the target business or businesses, or (ii) in such a way so that the post-transaction
company owns or acquires less than 100% of such interests or assets of the target business in order to meet certain objectives of the
target management team or stockholders, or for other reasons. However, we will only complete an initial business combination if the post-transaction
company owns or acquires 50% or more of the outstanding voting securities of the target or otherwise acquires a controlling interest in
the target sufficient for it not to be required to register as an investment company under the Investment Company Act of 1940, as amended,
or the “Investment Company Act.” Even if the post-transaction company owns or acquires 50% or more of the voting securities
of the target, our stockholders prior to the initial business combination may collectively own a minority interest in the post-transaction
company, depending on valuations ascribed to the target and us in the initial business combination. For example, we could pursue a transaction
in which we issue a substantial number of new shares in exchange for all of the outstanding capital stock of a target. In this case, we
would acquire a 100% controlling interest in the target. However, as a result of the issuance of a substantial number of new shares, our
stockholders immediately prior to our initial business combination could own less than a majority of our outstanding shares subsequent
to our initial business combination. If less than 100% of the equity interests or assets of a target business or businesses are owned
or acquired by the post-transaction company, the portion of such business or businesses that is owned or acquired is what will be taken
into account for purposes of Nasdaq’s 80% fair market value test. If the initial business combination involves more than one target
business, the 80% fair market value test will be based on the aggregate value of all of the transactions and we will treat the target
businesses together as the initial business combination for purposes of a tender offer or for seeking stockholder approval, as applicable.
Our Business Combination Process
In addition to any potential business candidates
we may identify on our own, we anticipate that other target business candidates will be brought to our attention from various unaffiliated
sources, including investment market participants, private equity funds and large business enterprises seeking to divest non-core assets
or divisions.
In evaluating a prospective target business, we
expect to conduct an extensive due diligence review which will encompass, as applicable and among other things, meetings with incumbent
management and employees, document reviews, interviews of customers and suppliers, inspection of facilities, and a review of financial
and other information about the target and its industry.
We are not prohibited from pursuing an initial
business combination with a company that is affiliated with our sponsor, officers or directors, nor are we prohibited from partnering,
submitting joint bids, or entering into any similar transaction with our sponsor, or an affiliate of our sponsor, in the pursuit of an
initial business combination. If we seek to complete an initial business combination with such a company or we partner with our sponsor,
or any of its affiliates in our pursuit of an initial business combination, we, or a committee of independent directors, will obtain an
opinion from an independent investment banking firm that is a member of FINRA or an independent accounting firm with respect to fair market
value that the business combination is fair to our stockholders from a financial point of view.
As more fully discussed in “Management —
Conflicts of Interest,” if any of our officers or directors becomes aware of a business combination opportunity that falls within
the line of business of any entity to which he or she has pre-existing fiduciary or contractual obligations, he or she may be required
to present such business combination opportunity to such entity prior to presenting such business combination opportunity to us. Certain
of our directors currently have relevant fiduciary duties or contractual obligations that may take priority over their duties to us. However,
our sponsor, officers and directors may participate in the formation of, or become an officer or director of, any other blank check company
prior to completion of our initial business combination. As a result, our sponsor, officers or directors could have conflicts of interest
in determining whether to present business combination opportunities to us or to any other blank check company with which they may become
involved. We do not believe that any potential conflicts would materially affect our ability to complete our initial business combination.
Our sponsor paid a nominal purchase price for
the founder shares and, as a result, is likely to earn a substantial profit on its investment in us upon disposition of its Class A
common stock even if the trading price of our Class A common stock declines after we complete our initial business combination. Our
sponsor may therefore be economically incentivized to complete an initial business combination with a riskier, weaker-performing or less-established
target business than would be the case if our sponsor had paid the same per share price for the founder shares as our public stockholders
paid for their public shares. See “Risk Factors — The nominal purchase price paid by our sponsor for the founder shares may
significantly dilute the implied value of your public shares in the event we complete an initial business combination. In addition, the
value of the sponsor’s founder shares will be significantly greater than the amount our sponsor paid to purchase such shares in
the event we complete an initial business combination, even if the business combination causes the trading price of our Class A common
stock to materially decline.”
Corporate Information
We are an “emerging growth company,”
as defined in Section 2(a) of the Securities Act of 1933, as amended, or the Securities Act, as modified by the Jumpstart Our
Business Startups Act of 2012, or the JOBS Act. As such, we are eligible to take advantage of certain exemptions from various reporting
requirements that are applicable to other public companies that are not “emerging growth companies” including, but not limited
to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, or the
Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and
exemptions from the requirements of holding a non-binding advisory vote on executive compensation and stockholder approval of any golden
parachute payments not previously approved. If some investors find our securities less attractive as a result, there may be a less active
trading market for our securities and the prices of our securities may be more volatile.
In addition, Section 107 of the JOBS Act
also provides that an “emerging growth company” can take advantage of the extended transition period provided in Section 7(a)(2)(B) of
the Securities Act for complying with new or revised accounting standards. In other words, an “emerging growth company” can
delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We intend to take
advantage of the benefits of this extended transition period.
We will remain an emerging growth company until
the earlier of: (1) the last day of the fiscal year (a) following the fifth anniversary of the completion of this offering,
(b) in which we have total annual gross revenue of at least $1.07 billion, or (c) in which we are deemed to be a large accelerated
filer, which means the market value of our common stock that is held by non-affiliates equals or exceeds $700 million as of the end of
the prior fiscal year’s second fiscal quarter; and (2) the date on which we have issued more than $1.00 billion in non-convertible
debt during the prior three-year period. References herein to “emerging growth company” shall have the meaning associated
with it in the JOBS Act.
Additionally,
we are a “smaller reporting company” as defined in Item 10(f)(1) of Regulation S-K. Smaller reporting companies
may take advantage of certain reduced disclosure obligations, including, among other things, providing only two years of audited financial
statements. We will remain a smaller reporting company until the last day of the fiscal year in which (1) the market value of our
common stock held by non-affiliates equaled or exceeded $250 million as of the prior June 30th,
and (2) our annual revenues equaled or exceeded $100 million during such completed fiscal year or the market value of our common
stock held by non-affiliates equaled or exceeded $700 million as of the prior June 30.
Our executive offices are located at 2929 Arch
Street, Suite 1703, Philadelphia, PA 19104 and our telephone number is (215) 701-9555.
The Offering
In making your decision on whether
to invest in our securities, you should take into account not only the backgrounds of the members of our management team, but also, among
other things, the special risks we face as a blank check company and the fact that this offering is not being conducted in compliance
with Rule 419 under the Securities Act. You will not be entitled to protections normally afforded to investors in Rule 419 blank
check offerings. You should carefully consider these and the other risks set forth in the section “Risk Factors” beginning
on page 34 of this prospectus.
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Securities
offered
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22,000,000 units, at $10.00 per unit, each
unit consisting of:
• one
share of Class A common stock; and
• one-half
of one redeemable warrant.
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Proposed
NASDAQ Global
Market symbols
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Units:
“___U”
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Common
Stock: “___”
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Warrants:
“___W”
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Trading
commencement and separation of Class A common stock and warrants
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We
anticipate the units will begin trading on or promptly after the date of this prospectus. The Class A common stock and warrants
comprising the units will begin separate trading on the 52nd day following
the date of this prospectus unless Goldman Sachs & Co., LLC (“Goldman Sachs”), the sole book-running manager
in this offering, informs us of its decision to allow earlier separate trading, subject to our having filed the Current Report on
Form 8-K described below and having issued a press release announcing when such separate trading will begin. Holders will need
to have their brokers contact our transfer agent in order to separate the units into shares of Class A common stock and warrants.
No fractional warrants will be issued upon separation of the units and only whole warrants will trade. Accordingly, unless you purchase
at least four units, you will not be able to receive or trade a whole warrant.
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Separate
trading of the Class A common stock and warrants is prohibited until we have filed a Current Report on Form 8-K
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In
no event will our Class A common stock and warrants be traded separately until we have filed a Current Report on Form 8-K
with the SEC containing an audited balance sheet reflecting our receipt of the gross proceeds from this offering. We will file the
Current Report on Form 8-K promptly after the completion of this offering, which we anticipate will take place three business
days from the date of this prospectus. If the underwriter exercises its overallotment option following the initial filing of such
Current Report, we will file a second or amended Current Report to provide updated financial information reflecting that exercise.
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Units:
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Number of units outstanding before this offering
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0
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Number
of placement units to be sold simultaneously with this offering
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890,000(1)(2)
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Number of units to be outstanding
after this offering and the private placement
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22,890,000(1)(2)
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Common stock:
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Number
of shares outstanding before this offering
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8,763,333
shares of Class B common stock(3)
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Number
of shares outstanding after this offering and the private placement
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30,520,000
shares of Class A common stock and Class B common stock(4)(5)
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Redeemable Warrants:
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Number of warrants outstanding before this offering
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0
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Number of warrants outstanding
after this offering and the private placement
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11,445,000(4)(6)
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Exercisability
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Each whole warrant is exercisable to purchase one share of our Class A common stock and only whole warrants are exercisable.
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(1)
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The underwriter has
agreed to defer all underwriting commissions in respect of any units sold pursuant to the
underwriter’s exercise of its overallotment option and to have the amounts attributable
to those commissions placed in the trust account and paid to the underwriter at the closing
of our initial business combination.
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(2)
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Assumes
no exercise of the underwriter’s overallotment option and the forfeiture by our initial stockholders
of 1,133,333 founder shares. Our sponsor has committed to purchase, simultaneously with the
completion of this offering, an aggregate of 890,000 placement units, each unit consisting
of one placement share and one-half of one placement warrant. The placement units are not
subject to forfeiture but will be subject to transfer restrictions as described in “Principal
Stockholders – Restrictions on Transfers of Founder Shares and Placement Units”.
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(3)
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Consists
solely of founder shares and includes up to 1,133,333 founder shares that are subject to
forfeiture by holders of founder shares to the extent that the overallotment option is not
exercised by the underwriter.
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(4)
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Assumes
no exercise of the underwriter’s overallotment option and the forfeiture by our initial stockholders
of 1,133,333 founder shares.
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(5)
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Comprised
of 22,000,000 shares of Class A common stock included in the units to be sold in this offering,
890,000 shares of Class A common stock included in the placement units to be sold in the
private placement and 7,630,000 shares of Class B common stock (or founder shares). The Class
B common stock is convertible into shares of our Class A common stock on a one-for-one basis,
subject to adjustment as described below adjacent to the caption "Founder shares conversion
and anti-dilution rights."
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(6)
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Comprised
of 11,000,000 public warrants included in the units to be sold in this offering and 445,000
placement warrants included in the placement units to be sold in the private placement.
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Exercise price
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$11.50 per whole share, subject to adjustments as described herein. In addition, if (x) we issue additional shares of Class A common stock or equity-linked securities for capital raising purposes in connection with the closing of our initial business combination at an issue price or effective issue price of less than $9.20 per share (with such issue price or effective issue price to be determined in good faith by us and in the case of any such issuance to our sponsor or its affiliates, without taking into account any founder shares held by our initial stockholders or such affiliates, as applicable, prior to such issuance) (the “Newly Issued Price”), (y) the aggregate gross proceeds from such issuances represent more than 50% of the total equity proceeds, and interest thereon, available for the funding of our initial business combination on the date of the completion of our initial business combination (net of redemptions), and (z) the volume-weighted average trading price of our shares of Class A common stock during the 20 trading day period starting on the trading day prior to the day on which we complete our initial business combination (such price, the “Market Value”) is below $9.20 per share, the exercise price of the warrants will be adjusted (to the nearest cent) to be equal to 115% of the higher of the Market Value and the Newly Issued Price, the $18.00 per share redemption trigger price will be adjusted (to the nearest cent) to be equal to 180% of the higher of the Market Value and the Newly Issued Price.
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Exercise period
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The warrants will become exercisable 30 days after the consummation
of our initial business combination, provided that we have an effective registration statement under the Securities Act covering
the offer and sale of the Class A common stock issuable upon exercise of the warrants and a current prospectus relating to such shares
of common stock is available and such shares are registered, qualified or exempt from registration under the securities laws of the state
of residence of the holder.
Although this registration statement registers the offer of the Class A
common stock underlying the warrants, it does not register the issuance of the shares underlying the warrants from time to time following
the initial business combination. We have therefore agreed that as soon as practicable, but in no event later than 15 business days after
the closing of our initial business combination, we will use our commercially reasonable efforts to file with the SEC a registration statement
for the registration, under the Securities Act, of the offer and sale of the Class A common stock issuable upon exercise of the warrants.
We will use our commercially reasonable efforts to cause the same to become effective within 60 business days after the closing of our
initial business combination, and to maintain the effectiveness of such registration statement, and a current prospectus relating thereto,
until the expiration of the warrants in accordance with the provisions of the warrant agreement. If a registration statement covering
the shares of Class A common stock issuable upon exercise of the warrants is not effective by the 60th business day after the closing
of our initial business combination, warrant holders may, until such time as there is an effective registration statement and during any
period when we will have failed to maintain an effective registration statement, exercise warrants on a cashless basis in accordance with
Section 3(a)(9) of the Securities Act or another exemption, but we will use our commercially reasonable efforts to register
or qualify the shares under applicable blue sky laws to the extent an exemption is not available. If that exemption, or another exemption,
is not available, holders will not be able to exercise their warrants on a cashless basis. The warrants will expire at 5:00 p.m., New
York City time, five years after the completion of our initial business combination or earlier upon redemption or liquidation. On the
exercise of any warrant, the warrant exercise price will be paid directly to us and not placed in the trust account.
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Redemption of warrants
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Once the warrants become exercisable, we may redeem the outstanding warrants:
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• in whole and not in part;
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• at a price of $0.01 per warrant;
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• upon a minimum of 30 days’ prior written notice of redemption, which we refer to as the 30-day redemption period; and
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• if, and only if, the last sale price of our Class A common stock (or the closing bid price of our Class A common stock in the event the shares of Class A common stock are not traded on any specific trading day) equals or exceeds $18.00 per share (as adjusted for stock splits, stock dividends, reorganizations and the like) for any 20 trading days within a 30 trading day period ending on the third trading day before we send the notice of redemption to the warrant holders.
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We will not redeem the warrants unless a registration statement covering the shares of Class A common stock issuable upon exercise of the warrants is effective and a current prospectus relating to those shares is available throughout the 30-day redemption period. If and when the warrants become redeemable by us, we may exercise our redemption right even if we are unable to register or qualify the underlying securities for sale under all applicable state laws.
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Election of directors; voting rights
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Prior to the consummation of our initial business combination, only holders of our Class B common stock will have the right to vote on the election of directors. Holders of the Class A common stock will not be entitled to vote on the election of directors during such time. These provisions of our amended and restated certificate of incorporation may only be amended if approved by a majority of at least 90% of our common stock voting at a stockholder meeting. With respect to any other matter submitted to a vote of our stockholders, including any vote in connection with our initial business combination, except as required by applicable law or stock exchange rule, holders of our Class A common stock and holders of our Class B common stock will vote together as a single class, with each share entitling the holder to one vote.
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Founder shares
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On
June 2, 2021, Emerald ESG Sponsor, LLC purchased 7,992,750 founder shares for an aggregate purchase price of $25,000, and on
October 14, 2021, we effected a 1.1014-for-1.0 stock split of our common stock, so that our sponsor owned an aggregate of 8,803,333
founder shares. On November 12, 2021, we effected a 0.9955-for-1.0 stock split of our common stock, so that our sponsor owns an
aggregate of 8,763,333 founder shares. Prior to the initial investment in the company of $25,000 by Emerald ESG Sponsor, LLC, the
company had no assets, tangible or intangible. The number of founder shares was determined based on the expectation that the founder
shares would represent 25% of the aggregate of our founder shares, the placement shares and our issued and outstanding public shares
after this offering (assuming our initial stockholders do not purchase any units in the offering). If we increase or decrease the
size of this offering, we will effect a stock dividend or share contribution back to capital, as applicable, with respect to our
Class B common stock immediately prior to the consummation of this offering in such amount as to maintain the ownership of our
sponsor at 25% of the aggregate of our founder shares, the placement shares and our issued and outstanding public shares after this
offering. Up to 1,133,333 founder shares will be subject to forfeiture by our sponsor depending on the extent to which the underwriter’s
overallotment option is exercised so that founder shares represent 25% of the aggregate of our founder shares, the placement shares
and our issued and outstanding public shares after this offering (assuming our initial stockholders do not purchase any units in
the offering). None of our sponsor or our officers or directors intends to purchase any units in this offering.
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The founder shares are identical to the shares of Class A common stock included in the units being sold in this offering, except that:
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• only holders of the founder shares have the right to vote on the election of directors prior to the consummation of our initial business combination;
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• the founder shares are subject to certain transfer restrictions, as described in more detail below;
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• our
initial stockholders, officers and directors have entered into a letter agreement with us, pursuant to which they have agreed: (1) to
waive their redemption rights with respect to any founder shares, placement shares and public shares held by them, as applicable,
in connection with the completion of our initial business combination; (2) to waive their redemption rights with respect to
any founder shares, placement shares and public shares held by them in connection with a stockholder vote to approve an amendment
to our amended and restated certificate of incorporation (A) to modify the substance or timing of our obligation to provide
for the redemption of our public shares in connection with an initial business combination or to redeem 100% of our public shares
if we have not consummated our initial business combination within 18 months from the closing of this offering, or 21 months
from the closing of this offering if we have executed a letter of intent, agreement in principle or definitive agreement for our
initial business combination within 18 months from the closing of this offering but have not completed our initial business
combination within such 18-month period, or (B) with respect to any other provision relating to stockholders’ rights
or pre-initial business combination activity; and (3) to waive their rights to liquidating distributions from the trust account
with respect to any founder shares or placement shares they hold if we fail to complete our initial business combination within 18
months from the closing of this offering, or 21 months from the closing of this offering if we have executed a letter of intent,
agreement in principle or definitive agreement for our initial business combination within 18 months from the closing of this
offering but have not completed our initial business combination within such 18-month period (although they will be entitled
to liquidating distributions from the trust account with respect to any public shares they hold if we fail to complete our initial
business combination within the completion window). If we submit our initial business combination to our public stockholders for
a vote, our initial stockholders, officers and directors have agreed to vote any founder shares, any placement shares and any public
shares held by them in favor of our initial business combination. As a result, in addition to our initial stockholders’ founder
shares, we would need 6,740,001, or 30.6%, of the 22,000,000 public shares sold in this offering to be voted in favor of an initial
business combination (assuming all issued and outstanding shares are voted and the overallotment option is not exercised) in order
to have such initial business combination approved;
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• the founder shares are shares of Class B common stock that are automatically convertible into shares of our Class A common stock at the
time of our initial business combination on a one-for-one basis, subject to adjustment pursuant to certain anti-dilution rights, as described
in more detail below; and
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• the holders of the founder shares are entitled to registration rights.
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Transfer restrictions on founder shares
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Our sponsor has agreed not to transfer, assign or sell any of their founder shares (i) with respect to 25% of such shares, until consummation of our initial business combination, (ii) with respect to 25% of such shares, until the closing price of our Class A common stock exceeds $12.00 for any 20 trading days within a 30-trading day period following the consummation of our initial business combination, (iii) with respect to 25% of such shares, until the closing price of our Class A common stock exceeds $13.50 for any 20 trading days within a 30-trading day period following the consummation of our initial business combination, and (iv) with respect to 25% of such shares, until the closing price of our Class A common stock exceeds $15.00 for any 20 trading days within a 30-trading day period following the consummation of our initial business combination or earlier, in any case, if, following a business combination, we complete a liquidation, merger, capital stock exchange or other similar transaction that results in all of our stockholders having the right to exchange their shares of common stock for cash, securities or other property (except as described herein under the section of this prospectus entitled “Principal Stockholders — Restrictions on Transfers of Founder Shares and Placement Units”). Any permitted transferees would be subject to the same restrictions and other agreements of our initial stockholders with respect to any founder shares. We refer to such transfer restrictions throughout this prospectus as the lock-up. Notwithstanding the foregoing, in connection with an initial business combination, the initial holders may transfer, assign or sell their founder shares with our consent to any person or entity that agrees in writing to be bound by the transfer restrictions set forth in the prior sentence.
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Founder shares conversion and
anti-dilution rights
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The shares of Class B common stock will automatically convert into shares of Class A common stock at the time of our initial business combination on a one-for-one basis, subject to adjustment as provided herein. In the case that additional shares of Class A common stock or equity-linked securities are issued or deemed issued in excess of the amounts sold in this offering and related to the closing of our initial business combination, the ratio at which shares of Class B common stock shall convert into shares of Class A common stock will be adjusted (unless the holders of a majority of the outstanding shares of Class B common stock agree to waive such adjustment with respect to any such issuance or deemed issuance) so that the number of shares of Class A common stock issuable upon conversion of all shares of Class B common stock will equal, in the aggregate, on an as-converted basis, 25% of the sum of the total number of all shares of common stock issued and outstanding upon completion of this offering, including placement shares, plus all shares of Class A common stock and equity-linked securities issued or deemed issued in connection with our initial business combination, excluding any shares or equity-linked securities issued, or to be issued, to any seller in our initial business combination and any private placement-equivalent securities issued to our sponsor or its affiliates upon conversion of loans made to us. The term “equity-linked securities” refers to any debt or equity securities that are convertible, exercisable or exchangeable for shares of Class A common stock issued in a financing transaction in connection with our initial business combination, including but not limited to a private placement of equity or debt. Securities could be “deemed issued” for purposes of the conversion rate adjustment if such shares are issuable upon the conversion or exercise of convertible securities, warrants or similar securities.
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Placement units and underlying securities
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Our
sponsor has committed to purchase an aggregate of 890,000 placement units (or 990,000 if the underwriter’s overallotment option
is exercised in full) at a price of $10.00 per unit, for an aggregate purchase price of $8,900,000 (or $9,900,000 if the underwriter’s
overallotment option is exercised in full), in a private placement that will occur simultaneously with the completion of this offering.
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A
portion of the purchase price of the placement units will be added to the proceeds from this offering to be held in the trust account
such that at the time of closing $222,200,000 (or $255,530,000 if the underwriter exercises its overallotment option in full) will
be held in the trust account. If we do not complete our initial business combination within 18 months from the closing of this offering,
or 21 months from the closing of this offering if we have executed a letter of intent, agreement in principle or definitive
agreement for our initial business combination within 18 months from the closing of this offering but have not completed our
initial business combination within such 18-month period, the proceeds from the sale of the placement units held in the trust
account will be used to fund the redemption of our public shares (subject to the requirements of applicable law) and the placement
units will expire worthless. The placement warrants will be exercisable on a cashless basis so long as they are held by the sponsor
or its permitted transferees. If the placement warrants are held by holders other than the sponsor or its permitted transferees,
the placement warrants will be redeemable by us in all redemption scenarios and exercisable by the holders on the same basis as the
warrants included in the units being sold in this offering.
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Transfer restrictions on placement units
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The placement units (including the underlying placement warrants, the placement shares and the shares of Class A common stock issuable upon exercise of the placement warrants) will not be transferable, assignable or salable until 30 days after the completion of our initial business combination (except as described under the section of this prospectus entitled “Principal Stockholders — Restrictions on Transfers of Founder Shares and Placement Units”).
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Cashless exercise of placement warrants
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If holders of placement warrants elect to exercise them on a cashless basis, they would pay the exercise price by surrendering their warrants for that number of shares of Class A common stock equal to the quotient obtained by dividing (x) the product of the number of shares of Class A common stock underlying the warrants, multiplied by the difference between the exercise price of the warrants and the “fair market value” (defined below) by (y) the fair market value. The “fair market value” shall mean the average reported last sale price of the Class A common stock for the 10 trading days ending on the third trading day prior to the date on which the notice of warrant exercise is sent to the warrant agent. The reason that we have agreed that these warrants will be exercisable on a cashless basis so long as they are held by the sponsor or its permitted transferees is because it is not known at this time whether they will be affiliated with us following an initial business combination. If they remain affiliated with us, their ability to sell our securities in the open market will be significantly limited.
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We expect to have policies in place that prohibit insiders from selling our securities except during specific periods of time. Even during such periods of time when insiders will be permitted to sell our securities, an insider cannot trade in our securities if he or she is in possession of material non-public information. Accordingly, unlike public stockholders who could sell the shares of Class A common stock issuable upon exercise of the warrants freely in the open market, the insiders could be significantly restricted from doing so. As a result, we believe that allowing the holders to exercise such warrants on a cashless basis is appropriate.
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Proceeds to be held in trust account
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The
rules of Nasdaq provide that at least 90% of the gross proceeds from this offering and the private placement be deposited in
a trust account. Of the net proceeds we will receive from this offering and the sale of the placement units described in this prospectus,
$222,200,000 ($10.10 per unit), or $255,530,000 ($10.10 per unit) if the underwriter’s overallotment option is exercised in
full, will be deposited into a segregated trust account located in the United States at JPMorgan Chase Bank, N.A. with Continental
Stock Transfer & Trust Company acting as trustee and $3 million will be used to pay expenses in connection with the closing
of this offering and for working capital following this offering. The proceeds to be placed in the trust account include $7.7 million
(or up to approximately $8.9 million if the underwriter’s overallotment option is exercised in full) in deferred underwriting
commissions.
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Except
for any interest income released to us to pay franchise and income taxes and up to $100,000 of interest to pay dissolution expenses,
none of the funds held in trust will be released from the trust account until the earlier of (i) the consummation of our initial
business combination; (ii) the redemption of our public shares if we are unable to consummate a business combination within
18 months from the completion of this offering subject to applicable law, or 21 months from the closing of this offering if
we have executed a letter of intent, agreement in principle or definitive agreement for our initial business combination within 18 months
from the closing of this offering but have not completed our initial business combination within such 18-month period; or (iii) the
redemption of any public shares properly tendered in connection with a stockholder vote to approve an amendment to our amended and
restated certificate of incorporation (A) to modify the substance or timing of our obligation to provide for the redemption
of our public shares in connection with an initial business combination or to redeem 100% of our public shares if we have not consummated
our initial business combination within 18 months from the closing of this offering, or 21 months from the closing of this offering
if we have executed a letter of intent, agreement in principle or definitive agreement for our initial business combination within
18 months from the closing of this offering but have not completed our initial business combination within such 18-month period
or (B) with respect to any other provision relating to stockholders’ rights or pre-initial business combination activity.
The proceeds deposited in the trust account could become subject to the claims of our creditors, if any, which could have priority
over the claims of our public stockholders.
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Anticipated
expenses and funding sources
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Except
as described above with respect to the payment of taxes and dissolution expenses, unless and until we complete our initial business
combination, no proceeds held in the trust account will be available for our use. The proceeds held in the trust account will be
invested only in U.S. government securities with a maturity of 185 days or less or in money market funds meeting certain conditions
under Rule 2a-7 under the Investment Company Act which invest only in direct U.S. government treasury obligations. We will disclose
in each quarterly and annual report filed with the SEC prior to our initial business combination whether the proceeds deposited in
the trust account are invested in U.S. government treasury obligations or money market funds or a combination thereof. Based upon
a current interest rate of 0.02%, we expect the trust account to generate approximately $44,440 of interest annually.
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• the
net proceeds of this offering and the sale of the placement units not held in the trust account, which will be approximately $1,760,000
in working capital (or $1,770,000 if the underwriter exercises its overallotment option in full) after the payment of approximately
$540,000 in expenses relating to this offering; and
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• any loans or additional investments from our sponsor, members of our management team or their affiliates or other third parties, although they are under no obligation to advance funds or invest in us, and provided that any such loans will not have any claim on the proceeds held in the trust account unless such proceeds are released to us upon completion of our initial business combination. If we complete our initial business combination, we expect to repay such loaned amounts out of the proceeds of the trust account released to us. In the event that our initial business combination does not close, we may use a portion of the working capital held outside the trust account to repay such loaned amounts but no proceeds from our trust account would be used to repay such loaned amounts. Up to $2,000,000 of all loans made to us by our sponsor, an affiliate of our sponsor or our officers and directors may be convertible into units at a price of $10.00 per unit at the option of the lender at the time of the business combination. The units would be identical to the placement units.
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Conditions to consummating our initial business combination
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There is no limitation on our ability to raise funds privately or through loans in connection with our initial business combination. Subject to the Nasdaq requirement that our initial business combination must be with one or more target businesses that together have a fair market value equal to at least 80% of the balance in the trust account (less any deferred underwriting commissions and taxes payable on interest earned) at the time we sign a definitive agreement for our initial business combination, our management will have virtually unrestricted flexibility in identifying and selecting one or more prospective target businesses. We do not currently intend to purchase multiple businesses in unrelated industries in conjunction with our initial business combination, although there is no assurance that will be the case.
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Our board of directors will make the determination as to the fair market value of our initial business combination. If our board of directors is not able to independently determine the fair market value of our initial business combination, we will obtain an opinion from an independent investment banking firm or another independent entity that commonly renders valuation opinions with respect to the satisfaction of such criteria. While we consider it unlikely that our board of directors will not be able to make an independent determination of the fair market value of our initial business combination, it may be unable to do so if it is less familiar or experienced with the business of a particular target or if there is a significant amount of uncertainty as to the value of a target’s assets or prospects. Notwithstanding the foregoing, if we are not then listed on the Nasdaq for whatever reason, we would no longer be required to meet the foregoing 80% fair market value test. There is no limitation on our ability to raise funds privately, or through loans in connection with our initial business combination.
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We anticipate structuring our initial business combination either (i) in such a way so that the post-transaction company in which our public stockholders own shares will own or acquire 100% of the equity interests or assets of the target business or businesses, or (ii) in such a way so that the post-transaction company owns or acquires less than 100% of such interests or assets of the target business in order to meet certain objectives of the target management team or stockholders, or for other reasons. However, we will only complete an initial business combination if the post-transaction company owns or acquires 50% or more of the outstanding voting securities of the target or otherwise acquires a controlling interest in the target sufficient for it not to be required to register as an investment company under the Investment Company Act. Even if the post-transaction company owns or acquires 50% or more of the voting securities of the target, our stockholders prior to the initial business combination may collectively own a minority interest in the post-transaction company, depending on valuations ascribed to the target and us in the initial business combination. For example, we could pursue a transaction in which we issue a substantial number of new shares in exchange for all of the outstanding capital stock of a target. In this case, we would acquire a 100% controlling interest in the target. However, as a result of the issuance of a substantial number of new shares, our stockholders immediately prior to our initial business combination could own less than a majority of our outstanding shares subsequent to our initial business combination. If less than 100% of the equity interests or assets of a target business or businesses are owned or acquired by the post-transaction company, the portion of such business or businesses that is owned or acquired is what will be taken into account for purposes of Nasdaq’s 80% fair market value test. If the initial business combination involves more than one target business, the 80% fair market value test will be based on the aggregate value of all of the transactions and we will treat the target businesses together as the initial business combination for purposes of a tender offer or for seeking stockholder approval, as applicable.
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Permitted purchases of public securities by our affiliates
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If
we seek stockholder approval of our initial business combination and we do not conduct redemptions in connection with our initial business
combination pursuant to the tender offer rules, our sponsor, directors, officers or their respective affiliates may purchase shares or
warrants in the open market or in privately negotiated transactions either prior to or following the consummation of our initial business
combination, although as of the date of this prospectus (apart from the purchase of the placement units) they have no commitments, plans
or intentions to engage in such transactions. If they do effect such purchases, we anticipate that they would approach a limited number
of large holders of our securities that have voted against the business combination or sought redemption of their shares, or that have
indicated an intention to do so, and engage in direct negotiations for the purchase of such holders’ positions. All holders approached
in this manner would be institutional or sophisticated holders. There is no limit on the number of shares they may acquire. Our sponsor,
directors, officers, advisors or their affiliates will not make any such purchases when they are in possession of any material nonpublic
information not disclosed to the seller or during a restricted period under Regulation M under the Exchange Act or in transactions that
would violate Section 9(a)(2) or Rule 10(b)-5 under the Exchange Act. Although they do not currently anticipate paying
any premium purchase price for such public shares, there is no limit on the price they may pay. They may also enter into transactions
to provide such holders with incentives to acquire shares or vote their shares in favor of an initial business combination. No funds
in the trust account may be used to effect purchases of shares in the open market or in privately negotiated transactions.
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Redemption rights for public
stockholders upon consummation of our initial business combination
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We will provide our public stockholders
with the opportunity to redeem their public shares upon the consummation of our initial business combination at a per-share price,
payable in cash, equal to the aggregate amount then on deposit in the trust account as of two business days prior to the consummation
of our initial business combination, including any amounts representing deferred underwriting commissions and interest earned on
the trust account not previously released to us, divided by the number of then outstanding public shares, subject to the limitations
described herein. The amount in the trust account initially will be $10.10 per public share. There will be no redemption rights upon
the consummation of our initial business combination with respect to our warrants. The initial holders, our officers and directors
have agreed to waive their redemption rights with respect to their founder shares and placement shares held by them and any public
shares they may acquire during or after this offering in connection with the completion of our initial business combination or otherwise.
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Manner of conducting redemptions
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We will provide our public stockholders with the opportunity to redeem all or a portion of their public shares upon the completion of our initial business combination either in connection with a stockholder meeting called to approve the business combination or by means of a tender offer. The decision as to whether we will seek stockholder approval of a proposed business combination or conduct a tender offer will be made by us, solely in our discretion, and will be based on a variety of factors such as the timing of the transaction and whether the terms of the transaction would require us to seek stockholder approval under the law or stock exchange listing requirement.
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We currently intend to conduct redemptions pursuant to a stockholder vote unless stockholder approval is not required by applicable law or stock exchange listing requirement and we choose to conduct redemptions pursuant to the tender offer rules of the SEC for business or other reasons.
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If a stockholder vote is not required and we do not decide to hold a stockholder vote for business or other reasons, we will, pursuant to our amended and restated certificate of incorporation:
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• conduct the redemptions
pursuant to Rule 13e-4 and Regulation 14E of the Exchange Act, which regulate issuer tender offers; and
• file tender offer
documents with the SEC prior to completing our initial business combination which contain substantially the same financial and other information
about the initial business combination and the redemption rights as is required under Regulation 14A of the Exchange Act, which regulates
the solicitation of proxies.
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Upon the public announcement of our initial business combination, if we elect to conduct redemptions pursuant to the tender offer rules, we and our sponsor will terminate any plan established in accordance with Rule 10b5-1 to purchase shares of our Class A common stock in the open market, in order to comply with Rule 14e-5 under the Exchange Act.
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In the event we conduct redemptions pursuant to the tender offer rules, our offer to redeem will remain open for at least 20 business days, in accordance with Rule 14e-1(a) under the Exchange Act, and we will not be permitted to complete our initial business combination until the expiration of the tender offer period. In addition, the tender offer will be conditioned on public stockholders not tendering more than a specified number of public shares, which number will be based on the requirement that we may not redeem public shares in an amount that would cause our net tangible assets, after payment of the deferred underwriting commissions, to be less than $5,000,001 (so that we do not then become subject to the SEC’s “penny stock” rules),2 or any greater net tangible asset or cash requirement which may be contained in the agreement relating to our initial business combination. If public stockholders tender more shares than we have offered to purchase, we will withdraw the tender offer and not complete such initial business combination.
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If, however, stockholder approval of the transaction is required by applicable law or stock exchange listing requirement, or we decide to obtain stockholder approval for business or other reasons, we will:
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• conduct the redemptions
in conjunction with a proxy solicitation pursuant to Regulation 14A of the Exchange Act, which regulates the solicitation of proxies,
and not pursuant to the tender offer rules; and
• file proxy materials
with the SEC.
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We expect that a final proxy statement would be mailed to public stockholders at least 10 days prior to the stockholder vote. However, we expect that a draft proxy statement would be made available to such stockholders well in advance of such time, providing additional notice of redemption if we conduct redemptions in conjunction with a proxy solicitation. Although we are not required to do so, we currently intend to comply with the substantive and procedural requirements of Regulation 14A in connection with any stockholder vote even if we are not able to maintain our Nasdaq listing or Exchange Act registration.
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If
we seek stockholder approval, we will complete our initial business combination only if a majority of the outstanding shares of common
stock voted are voted in favor of the business combination. A quorum for such meeting will consist of the holders present in person
or by proxy of shares of outstanding capital stock of the company representing a majority of the voting power of all outstanding
shares of capital stock of the company entitled to vote at such meeting. Our initial stockholders, officers and directors will count
towards this quorum and have agreed to vote any founder shares, placement shares and any public shares held by them in favor of our
initial business combination. We expect that at the time of any stockholder vote relating to our initial business combination, our
initial stockholders and their permitted transferees will own at least 27.9% of our outstanding shares of common stock entitled to
vote thereon. As a result, in addition to our initial stockholders’ founder shares and placement shares, we would need 6,740,001,
or 30.6%, of the 22,000,000 public shares sold in this offering to be voted in favor of an initial business combination (assuming
all issued and outstanding shares are voted and the overallotment option is not exercised) in order to have such initial business
combination approved. These quorum and voting thresholds and agreements may make it more likely that we will consummate our initial
business combination. Each public stockholder may elect to redeem its public shares without voting, and if they do vote, irrespective
of whether they vote for or against the proposed transaction.
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Our amended and restated certificate of incorporation will provide that in no event will we redeem our public shares in an amount that would cause our net tangible assets to be less than $5,000,001 upon consummation of our initial business combination and, in any event, the terms of the proposed business combination may require our net tangible assets to be greater than $5,000,001. For example, the proposed business combination may require: (i) cash consideration to be paid to the target or members of its management team, (ii) cash to be transferred to the target for working capital or other general corporate purposes or (iii) the allocation of cash to satisfy other conditions in accordance with the terms of the proposed business combination. If the aggregate cash consideration we would be required to pay for all shares of Class A common stock that are validly tendered plus the amount of any cash payments required pursuant to the terms of the proposed business combination exceeds the aggregate amount of cash available to us, taking into consideration the requirement that we maintain net tangible assets of at least $5,000,001 or such greater amount depending on the terms of our potential business combination, we will not consummate the business combination and any shares of common stock tendered pursuant to the tender offer will be returned to the holders thereof following the expiration of the tender offer.
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Tendering share certificates in connection with a tender offer or redemption rights
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We may require our public stockholders seeking to exercise their redemption rights, whether they are record holders or hold their shares in “street name,” to either tender their certificates to our transfer agent prior to the date set forth in the tender offer documents mailed to such holders, or up to two business days prior to the vote on the proposal to approve our initial business combination in the event we distribute proxy materials, or to deliver their shares to the transfer agent electronically using The Depository Trust Company’s DWAC (Deposit/Withdrawal At Custodian) System, at the holder’s option, rather than simply voting against the initial business combination. The tender offer or proxy materials, as applicable, that we will furnish to holders of our public shares in connection with our initial business combination will indicate whether we are requiring public stockholders to satisfy such delivery requirements, which will include the requirement that any beneficial owner on whose behalf a redemption right is being exercised must identify itself in order to validly redeem its shares.
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Limitation
on redemption rights of stockholders holding more than 15.0% of the shares sold in the offering if we hold stockholder
vote
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Notwithstanding the foregoing redemption rights, if we seek stockholder approval of our initial business combination and we do not conduct
redemptions in connection with our business combination pursuant to the tender offer rules, our amended and restated certificate of incorporation
will provide that a public stockholder, together with any affiliate of such stockholder or any other person with whom such stockholder
is acting in concert or as a “group” (as defined under Section 13 of the Exchange Act), will be restricted from redeeming
its shares with respect to an aggregate of more than 15.0% of the shares sold in this offering without our prior consent. We believe
the restriction described above will discourage stockholders from accumulating large blocks of shares and subsequent attempts by such
holders to use their ability to redeem their shares as a means to force us or our sponsor or its affiliates to purchase their shares
at a significant premium to the then-current market price or on other undesirable terms. Absent this provision, a public stockholder
holding more than an aggregate of 15.0% of the shares sold in this offering could threaten to exercise its redemption rights against
a business combination if such holder’s shares are not purchased by us or our sponsor or its affiliates at a premium to the then-current
market price or on other undesirable terms. By limiting our stockholders’ ability to redeem to no more than 15.0% of the shares
sold in this offering, we believe we will limit the ability of a small group of stockholders to unreasonably attempt to block our ability
to complete our initial business combination, particularly in connection with a business combination with a target that requires as a
closing condition that we have a minimum net worth or a certain amount of cash. However, we would not be restricting our stockholders’
ability to vote all of their shares (including all shares held by those stockholders that hold more than 15.0% of the shares sold in
this offering) for or against our initial business combination.
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Redemption rights in connection with proposed amendments to our certificate of incorporation
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|
Our amended and restated certificate of
incorporation will provide that any of its provisions related to pre-business combination activity (including the requirement to
deposit proceeds of this offering and the private placement of units into the trust account and not release such amounts except in
specified circumstances and to provide redemption rights to public stockholders as described herein) may be amended if approved by
holders of at least 65% of our common stock entitled to vote thereon, and corresponding provisions of the trust agreement governing
the release of funds from our trust account may be amended if approved by holders of 65% of our common stock entitled to vote thereon.
In all other instances (other than the election of directors), our amended and restated certificate of incorporation will provide
that it may be amended by holders of a majority of our common stock entitled to vote thereon, subject to applicable provisions of
the Delaware General Corporation Law, or DGCL, or applicable stock exchange rules. Prior to an initial business combination, we may
not issue additional securities that can vote with common stockholders on matters related to our pre-initial business combination
activity, on any amendment to certain provisions of our amended and restated certificate of incorporation or on our initial business
combination, or that would entitle holders thereof to receive funds from the trust account. Our initial stockholders, who will beneficially
own approximately 27.9% of our common stock upon the closing of this offering and the private placement (assuming they do not purchase
any units in this offering), may participate in any vote to amend our amended and restated certificate of incorporation and/or trust
agreement and will have the discretion to vote in any manner they may choose. Our sponsor, officers and directors have agreed, pursuant
to a written agreement with us, that they will not propose any amendment to our amended and restated certificate of incorporation
to modify the substance or timing of our obligation to provide for the redemption of our public shares in connection with an initial
business combination or to redeem 100% of our public shares if we do not complete our initial business combination within the completion
window, unless we provide our public stockholders with the opportunity to redeem their shares of common stock upon approval of any
such amendment at a per share price, payable in cash, equal to the aggregate amount then on deposit in the trust account, including
interest earned on the funds held in the trust account and not previously released to us to pay our taxes, divided by the number
of then outstanding public shares. Our initial stockholders, officers and directors have entered into a letter agreement with us,
pursuant to which they have agreed to waive their redemption rights with respect to any founder shares and any public shares held
by them in connection with the completion of our initial business combination. Any permitted transferees would be subject to the
same restrictions and other agreements as our initial stockholders with respect to any founder shares.
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Release
of funds in trust account on closing of our initial business combination
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On
the closing of our initial business combination, all amounts held in the trust account will be used to pay amounts due to any public
stockholders who exercise their redemption rights as described above under “Redemption rights for public stockholders upon
consummation of our initial business combination,” to pay the underwriter its deferred underwriting discounts, to pay all or
a portion of the consideration payable to the target or owners of the target of our initial business combination and to pay other
expenses associated with our initial business combination. If we use our equity or debt securities as consideration for our initial
business combination, or we do not use all of the funds released from the trust account for payment of the purchase price, we may
apply the excess funds for general corporate purposes, including for maintenance or expansion of operations of acquired businesses,
the payment of principal or interest due on indebtedness incurred in consummating the initial business combination, including loans
made to us by our sponsor or one of its affiliates as described under “— Anticipated expenses and funding sources”,
to fund the purchase of other companies or for working capital.
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Redemption
of public shares and distribution and liquidation if no initial business combination
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Our amended and restated certificate of
incorporation will provide that we will have only 18 months from the completion of this offering to consummate our initial business
combination, or 21 months from the closing of this offering if we have executed a letter of intent, agreement in principle or
definitive agreement for our initial business combination within 18 months from the closing of this offering but have not completed
our initial business combination within such 18-month period. If we have not consummated a business combination within 18 months
from the completion of this offering, or 21 months from the closing of this offering if we have executed a letter of intent, agreement
in principle or definitive agreement for our initial business combination within 18 months from the closing of, we will: (i) cease
all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than ten business
days thereafter, redeem all public shares then outstanding at a per-share price, payable in cash, equal to the aggregate amount then
on deposit in the trust account and not previously released to us to pay our taxes (less up to $100,000 of interest to pay dissolution
expenses), divided by the number of then outstanding public shares, which redemption will completely extinguish public stockholders’
rights as stockholders (including the right to receive further liquidation distributions, if any), subject to applicable law, and
(iii) as promptly as reasonably possible following such redemption, subject to the approval of our remaining stockholders and
our board of directors, dissolve and liquidate, subject in each case to our obligations under Delaware law to provide for claims
of creditors and the requirements of other applicable law. There will be no redemption rights or liquidating distributions with respect
to our warrants, which will expire worthless if we fail to complete our initial business combination within such completion window.
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The
initial holders, our officers and directors have agreed to waive their redemption rights
with respect to their founder shares and placement shares, as applicable, (i) in connection
with the consummation of a business combination, (ii) in connection with a stockholder
vote to approve an amendment to our amended and restated certificate of incorporation (A) to
modify the substance or timing of our obligation to provide for the redemption of our public
shares in connection with an initial business combination or to redeem 100% of our public
shares if we have not consummated our initial business combination within 18 months from
the closing of this offering, or 21 months from the closing of this offering
if we have executed a letter of intent, agreement in principle or definitive agreement for
our initial business combination within 18 months from the closing of this offering
but have not completed our initial business combination within such 18-month period,
or (B) with respect to any other provision relating to stockholders’ rights or
pre-initial business combination activity and (iii) if we fail to consummate a business
combination within 18 months from the completion of this offering or if we liquidate prior
to the expiration of the 18 month period, which is extendable at our sponsor’s option
to up to 21 months as described herein. The initial holders and our directors and officers
have also agreed to waive their redemption rights with respect to public shares in connection
with the consummation of a business combination and in connection with a stockholder vote
to amend our amended and restated certificate of incorporation to modify the substance or
timing of our obligation to redeem 100% of our public shares if we do not complete our initial
business combination within the 18-month period. However, the initial holders and our directors
and officers will be entitled to redemption rights with respect to any public shares held
by them if we fail to consummate a business combination within the 18-month period, which
is extendable at our sponsor’s option to up to 21 months as described herein.
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The underwriter has agreed to waive their rights to deferred underwriting commissions held in the trust account if we do not consummate a business combination and subsequently liquidate and, in such event, the deferred underwriting commissions held in the trust account will be available to fund the redemption of our public shares.
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Our
initial stockholders, executive officers and directors have agreed, pursuant to a written agreement with us, that they will not propose
any amendment to our amended and restated certificate of incorporation that would affect the substance or timing of our obligation
to redeem 100% of our public shares if we do not complete our initial business combination within 18 months, or 21 months from
the closing of this offering if we have executed a letter of intent, agreement in principle or definitive agreement for our initial
business combination within 18 months from the closing of this offering but have not completed our initial business combination
within such 18-month period, from the completion of this offering unless we provide our public stockholders with the opportunity
to redeem their shares of Class A common stock upon approval of any such amendment at a per-share price, payable in cash, equal
to the aggregate amount then on deposit in the trust account, including interest earned on the funds held in the trust account (net
of taxes payable), divided by the number of then outstanding public shares. However, we may not redeem our public shares in an amount
that would cause our net tangible assets to be less than $5,000,001 (so that we are not subject to the SEC’s “penny stock”
rules).
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Limited payments to insiders
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There will be no finder’s fees, reimbursements or cash payments made to our sponsor, officers or directors, or our or their affiliates, for services rendered to us prior to or in connection with the completion of our initial business combination. However, the following payments will be made to our sponsor, officers or directors, or our or their affiliates, none of which will be made from the proceeds of this offering held in the trust account prior to the completion of our initial business combination:
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• repayment of loans of up to $300,000 from our sponsor or one of its affiliates to fund organization costs and costs of this offering, which will be repaid upon closing of this offering from the proceeds of this offering and the private placement;
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• payment of certain consulting fees to persons engaged by an entity affiliated with certain of our directors and officers;
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• payment
to our sponsor, or our sponsor’s designee, for office space, administrative and shared personnel support services, in an amount
equal to $30,000 per month;
• at the closing
of our initial business combination, a customary advisory fee to affiliates of our sponsor, in an amount that constitutes a market standard
advisory fee for comparable transactions and services provided;
• reimbursement
for any out-of-pocket expenses related to identifying, investigating and consummating an initial business combination, provided that no
proceeds of this offering held in the trust account may be applied to the payment of such expenses prior to the consummation of a business
combination; and
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• repayment of loans which may be made by our sponsor, members of our management team or any of their respective affiliates or other third parties to finance transaction costs in connection with an intended initial business combination, the terms of which have not been determined nor have any written agreements been executed with respect thereto. Up to $2,000,000 of such loans may be convertible into units at a price of $10.00 per unit at the option of the lender at the time of the business combination. The units would be identical to the placement units sold in the private placement.
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Our audit committee will review on a quarterly basis all payments that were made to our sponsor, officers or directors, or our or their affiliates.
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Engagement of Financial Advisor
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We engaged CCM to provide consulting and advisory services in connection
with this offering, for which it will receive an advisory fee equal to 0.3% of the aggregate proceeds of this offering (excluding the
proceeds of the exercise of the overallotment option, if any) net of underwriter’s out-of-pocket expenses. We will also engage CCM
as an advisor in connection with our initial business combination for which it will earn an advisory fee of 0.525% of the proceeds of
this offering (excluding the proceeds of the exercise of the overallotment option, if any) payable at closing of our initial business
combination. CCM will also be entitled to an advisory fee equal to 0.825% of the aggregate proceeds of the exercise of the overallotment
option, if any, payable at closing of our initial business combination. CCM’s fees will be reimbursed to us by the underwriters
and will not result in any incremental fees to us.
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CCM is engaged to represent our interests only and is not participating
in this offering as defined in FINRA Rule 5110(j)(16); it is acting as an independent financial adviser as defined in FINRA Rule 5110(j)(9).
As such, CCM is not acting as an underwriter in connection with this offering, it will not identify or solicit potential investors in this offering or otherwise be involved in the distribution
of this offering.
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Audit Committee
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On or before the effective date of the registration statement of which this prospectus forms a part, we will establish and maintain an audit committee, which will initially be composed of three independent directors to, among other things, monitor compliance with the terms described above and the other terms relating to this offering. If any noncompliance is identified, then the audit committee will be charged with the responsibility to immediately take all action necessary to rectify such noncompliance or otherwise to cause compliance with the terms of this offering. For more information, see the section of this prospectus entitled “Management — Committees of the Board of Directors — Audit Committee.”
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Indemnification
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Emerald
ESG Sponsor, LLC has agreed that it will indemnify us to the extent any claims by a third party for services rendered or products
sold to us, or any claims by a prospective target business with which we have discussed entering into a transaction agreement, reduce
the amount of funds in the trust account to below $10.10 per public share, except for any claims by any third party who executed
a waiver of any and all rights to seek access to the trust account, regardless of whether such waiver is enforceable, and except
for claims arising from our obligation to indemnify the underwriter of this offering pursuant to the underwriting agreement for this
offering. We have not independently verified whether Emerald ESG Sponsor, LLC has sufficient funds to satisfy its indemnity obligations,
we have not asked it to reserve for such obligations and we believe that its only assets are securities of our company. Therefore,
we cannot assure you that Emerald ESG Sponsor, LLC will be able to satisfy those obligations. We believe the likelihood of Emerald
ESG Sponsor, LLC having to indemnify the trust account is limited because we will endeavor to have all third parties that provide
products or services to us and prospective target businesses execute agreements with us waiving any right, title, interest or claim
of any kind in or to monies held in the trust account.
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Risks
We have conducted no operations and
have generated no revenues since our formation in February 2021. Until we complete our initial business combination, we will have
no operations and, at least until we consummate our initial business combination, we will generate no operating revenues. In making your
decision whether to invest in our securities, you should take into account not only the background of our management team, but also the
special risks we face as a blank check company. This offering is not being conducted in compliance with Rule 419 promulgated under
the Securities Act and has certain terms and conditions that deviate from many blank check offerings. Accordingly, you will not be entitled
to protections normally afforded to investors in Rule 419 blank check offerings or to investors in many other blank check companies.
For additional information concerning how Rule 419 blank check offerings differ from this offering, see “Proposed Business —
Comparison of This Offering to Those of Blank Check Companies Subject to Rule 419.” You should carefully consider these and
the other risks set forth in the section entitled “Risk Factors” within this prospectus and read this entire prospectus before
investing in the units.
Summary Financial Data
The following table summarizes the
relevant financial data for our business and should be read with our financial statements, which are included in this prospectus. We have
not had any significant operations to date, so only balance sheet data is presented.
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September
30, 2021
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Actual
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As Adjusted
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Balance Sheet Data:
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Working capital(1)
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$
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(80,368
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)
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$
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216,284,792
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Total assets(2)
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$
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130,160
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$
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223,984,792
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Total liabilities(3)
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$
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105,368
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$
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7,700,000
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Value of common stock subject to possible conversion/tender(4)
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$
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—
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$
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222,200,000
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Stockholders’ equity (deficit)(5)
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$
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24,792
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$
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(5,915,208
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)
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(1)
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The
“as adjusted” calculation includes $222,200,000 cash held in trust from the proceeds
of this offering and the sale of the private placement warrants, plus $1,760,000 (or $1,770,000
if the underwriter exercises its overallotment option in full) in cash held outside the trust
account, including $540,000 in prepaid liability insurance premiums, plus $24,792 of actual
stockholders’ equity, less $7,700,000 of deferred underwriting commissions.
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(2)
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The “as adjusted” calculation includes $222,200,000 cash held in trust from the proceeds of this offering and the sale of the private placement warrants, plus $1,760,000 (or $1,770,000 if the underwriter exercises its overallotment option in full) in cash held outside the trust account, plus $24,792 of actual stockholders’ equity.
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(3)
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The “as adjusted” calculation includes $7,700,000 of deferred underwriting commissions assuming the over-allotment option is not exercised.
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(4)
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The “as adjusted” calculation equals the “as adjusted” total assets, less the “as adjusted” total liabilities, less the “as adjusted” stockholders’ deficit.
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(5)
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Excludes 22,000,000 shares of common stock purchased in the public market which are subject to redemption in connection with our initial business combination. The “as adjusted” calculation equals the “as adjusted” total assets, less the “as adjusted” total liabilities, less the value of shares of common stock that may be redeemed in connection with our initial business combination ($10.10 per share).
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If we do not
consummate a business combination within 18 months from the completion of this offering, or 21 months from the closing of this offering
if we have executed a letter of intent, agreement in principle or definitive agreement for our initial business combination within 18
months from the closing of, the proceeds held in the trust account, including the deferred underwriting commissions, and interest earned
on the trust account (less interest released to us for the payment of taxes and up to $100,000 in interest for dissolution expenses),
will be used to fund the redemption of our public shares. Our initial holders have agreed, with respect to their founder shares and placement
shares to waive their redemption rights if we fail to consummate a business combination or liquidate within such 18-month period, which
is extendable at our sponsor’s option to up to 21 months as described herein.
Summary of Risk Factors
Our business is
subject to numerous risks and uncertainties, including those highlighted in the section title “Risk Factors,” that represent
challenges that we face in connection with the successful implementation of our strategy. The occurrence of one or more of the events
or circumstances described in the section titled “Risk Factors,” alone or in combination with other events or circumstances,
may adversely affect our ability to effect a business combination, and may have an adverse effect on our business, cash flows, financial
condition and results of operations. Such risks include, but are not limited to:
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•
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newly formed company without an operating history;
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•
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delay in receiving distributions from the trust account;
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•
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lack of opportunity to vote on our proposed business combination;
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•
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lack of protections afforded to investors of blank check companies;
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•
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deviation from acquisition criteria;
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•
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issuance of equity and/or debt securities to complete a business
combination;
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•
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lack of working capital;
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•
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third-party claims reducing the per-share redemption price;
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•
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negative interest rate for securities in which we invest the
funds held in the trust account;
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•
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our stockholders being held liable for claims by third parties
against us;
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•
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failure to enforce our sponsor’s indemnification obligations;
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•
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warrant holders limited to exercising warrants only on a “cashless
basis;”
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•
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the ability of warrant holders to obtain a favorable judicial
forum for disputes with our company;
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•
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dependence on key personnel;
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•
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conflicts of interest of our sponsor, officers and directors;
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•
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the delisting of our securities by Nasdaq;
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•
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dependence on a single target business with a limited number
of products or services;
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•
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our stockholders’ inability to vote or redeem their shares
in connection with our extensions;
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•
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shares being redeemed and warrants becoming worthless;
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•
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our competitors with advantages over us in seeking business
combinations;
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•
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ability to obtain additional financing;
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•
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our initial stockholders controlling a substantial interest
in us;
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•
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warrants adverse effect on the market price of our common stock;
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•
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disadvantageous timing for redeeming warrants;
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•
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registration rights’ adverse effect on the market price
of our common stock;
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•
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impact of COVID-19 and related risks;
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•
|
business combination with a company located in a foreign jurisdiction;
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•
|
changes in laws or regulations;
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•
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tax consequences to business combinations; and
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•
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exclusive forum provisions in our amended and restated certificate
of incorporation.
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RISK FACTORS
An investment in our securities involves a
high degree of risk. You should consider carefully all of the risks described below and all of the other information set forth in this
prospectus before deciding to invest in our units. If any of the events or developments described below occur, our business, financial
condition or results of operations could be adversely affected. In that case, the trading price of our securities could decline, and you
could lose all or part of your investment.
Risks Relating to our Search for, Consummation
of, or Inability to Consummate,
a Business Combination and Post-Business Combination Risks
Our public stockholders may not be afforded an opportunity to
vote on our proposed business combination, unless such vote is required by law or Nasdaq, which means we may consummate our initial business
combination even though a majority of our public stockholders do not support such a combination.
We may not hold a stockholder vote to approve
our initial business combination unless the business combination would require stockholder approval under applicable state law or the
rules of Nasdaq or if we decide to hold a stockholder vote for business or other reasons. For example, Nasdaq rules currently
allow us to engage in a tender offer in lieu of a stockholder meeting but would still require us to obtain stockholder approval if we
were seeking to issue more than 20% of our outstanding shares to a target business as consideration in any business combination. Therefore,
if we structure a business combination that requires us to issue more than 20% of our outstanding shares, we would seek stockholder approval
of such business combination. However, except as required by law, the decision as to whether we will seek stockholder approval of a proposed
business combination will be made by us, solely in our discretion, and will be based on a variety of factors, such as the timing of the
transaction and whether the terms of the transaction would otherwise require us to seek stockholder approval. Accordingly, we may consummate
our initial business combination even if holders of a majority of the outstanding shares of our common stock do not approve of the business
combination we consummate.
If we seek stockholder approval of our initial business combination,
our sponsor, directors and officers have agreed to vote in favor of such initial business combination, regardless of how our public stockholders
vote.
Our sponsor, officers
and directors have agreed to vote their founder shares and any placement shares and public shares they hold in favor of our initial business
combination. Holders of our founder shares and placement shares will own approximately 27.9% of our common stock (including 890,000 placement
shares held by our sponsor) immediately following completion of this offering, assuming the underwriter does not exercise its overallotment
option. Accordingly, if we seek stockholder approval of our initial business combination, it is more likely that the necessary stockholder
approval will be received than would be the case if holders of founder shares agreed to vote their founder shares, placement shares and
public shares in accordance with the majority of the votes cast by our public stockholders.
Your ability to affect the investment decision regarding a potential
business combination may be limited to the exercise of your right to redeem your shares from us for cash, unless we seek stockholder approval
of the business combination.
At the time of your investment in us, you will
not be provided with an opportunity to evaluate the specific merits or risks of any target businesses. Since our board of directors may
consummate a business combination without seeking stockholder approval, public stockholders may not have the right to vote on the business
combination unless we seek such stockholder vote. Accordingly, your ability to affect the investment decision regarding a potential business
combination may be limited to exercising your redemption rights with respect to a proposed business combination.
The ability of our public stockholders to redeem their shares
for cash may make us unattractive to potential business combination targets, which may make it difficult for us to enter into a business
combination with a target.
We may enter into a transaction agreement with
a prospective target that requires as a closing condition that we have a minimum net worth or a certain amount of cash. Our amended and
restated certificate of incorporation requires us to provide all of our stockholders with an opportunity to redeem all of their shares
in connection with the consummation of any initial business combination, although our sponsor, directors and officers and each holder
of placement units has agreed to waive his, her or its respective redemption rights with respect to founder shares and placement shares,
and in the case of the initial holders, public shares held by him, her or it in connection with the consummation of our initial business
combination. Consequently, if accepting all properly submitted redemption requests would cause our net tangible assets to be less than
the amount necessary to satisfy a closing condition as described above, or less than the $5,000,001 minimum of tangible net assets which
we are required to maintain, we would not proceed with such redemption and the related business combination. Prospective targets would
be aware of these risks and, thus, may be reluctant to enter into a business combination transaction with us.
The ability of our public stockholders to exercise redemption
rights with respect to a large number of our shares may not allow us to consummate the most desirable business combination or optimize
our capital structure.
At the time we enter into an agreement for our
initial business combination, we will not know how many stockholders may exercise their redemption rights, and therefore will need to
structure the transaction based on our expectations as to the number of shares that will be submitted for redemption. If our initial business
combination agreement requires us to use a portion of the cash in the trust account to pay the purchase price, or requires us to have
a minimum amount of cash at closing, we will need to reserve a portion of the cash in the trust account to meet such requirements, or
arrange for third party financing. In addition, if a larger number of shares is submitted for redemption than we initially expected, we
may need to restructure the transaction to reserve a greater portion of the cash in the trust account or arrange for third party financing.
Raising additional third party financing may involve dilutive equity issuances or the incurrence of indebtedness at higher than desirable
levels. Furthermore, this dilution would increase to the extent that the anti-dilution provision of the Class B common stock result
in the issuance of Class A shares on a greater than one-to-one basis upon conversion of the Class B common stock at the time
of our business combination. The above considerations may limit our ability to complete the most desirable business combination available
to us or optimize our capital structure.
The ability of our public stockholders to exercise redemption
rights with respect to a large number of our shares could increase the probability that our initial business combination would be unsuccessful
and that you would have to wait for liquidation in order to redeem your stock.
If our initial business combination agreement
requires us to use a portion of the cash in the trust account to pay the purchase price, or requires us to have a minimum amount of cash
at closing, the probability that our initial business combination would be unsuccessful increases. If our initial business combination
is unsuccessful, you would not receive your pro rata portion of the trust account until we liquidate the trust account. If you are in
need of immediate liquidity, you could attempt to sell your stock in the open market; however, at such time our stock may trade at a discount
to the pro rata amount per share in the trust account. In either situation, you may suffer a material loss on your investment or lose
the benefit of funds expected in connection with our redemption until we liquidate or you are able to sell your stock in the open market.
The requirement that we complete a business
combination within 18 months from the completion of this offering, or 21 months from the closing of this offering if we have executed
a letter of intent, agreement in principle or definitive agreement for our initial business combination within 18 months from the closing
of, may give potential target businesses leverage over us in negotiating a business combination and may decrease our ability to conduct
due diligence on potential business combination targets as we approach our dissolution deadline, which could undermine our ability to
consummate a business combination on terms that would produce value for our stockholders.
Any potential target business
with which we enter into negotiations concerning a business combination will be aware that we must consummate a business combination
within 18 months from the completion of this offering, or 21 months from the closing of this offering if we have executed a letter of
intent, agreement in principle or definitive agreement for our initial business combination within 18 months from the closing of, (excluding
any exercise of the underwriter’s overallotment option). Consequently, such target businesses may obtain leverage over us in negotiating
a business combination, knowing that if we do not complete a business combination with it, we may be unable to identify another target
business and complete a business combination with any target business. This risk will increase as we get closer to the end of the 18
month period. Depending upon when we identify a potential target business, we may have only a limited time to conduct due diligence and
may enter into a business combination on terms that we might have rejected upon a more comprehensive investigation.
We
may not be able to complete our initial business combination within the prescribed time frame, in which case we
would cease all operations except for the purpose of winding up and we would redeem our public shares and liquidate, in which case our
public stockholders may only receive $10.10 per share, or less than such amount in certain circumstances, and our warrants will expire
worthless.
Our
sponsor, officers and directors have agreed that we must complete our initial business combination within 18 months from the closing
of this offering, or 21 months from the closing of this offering if we have executed a letter of intent, agreement in principle
or definitive agreement for our initial business combination within 18 months from the closing of this offering but have not completed
our initial business combination within such 18-month period. We may not be able to find a suitable target business and complete
our initial business combination within such time period. Our ability to complete our initial business combination may be negatively
impacted by general market conditions, volatility in the capital and debt markets and the other risks described herein. For example,
the outbreak of COVID-19 continues to grow both in the United States and globally and, while the extent of the impact of the
outbreak on us will depend on future developments, it could limit our ability to complete our initial business combination, including
as a result of increased market volatility, decreased market liquidity and third-party financing being unavailable on terms acceptable
to us or at all. Additionally, the continued outbreak of COVID-19 may negatively impact businesses we may seek to acquire.
If we have not completed our initial business combination within such 18-month period, which is extendable at our sponsor’s
option to up to 21 months as described herein, we will: (i) cease all operations except for the purpose of winding up; (ii) as
promptly as reasonably possible but not more than ten business days thereafter, subject to lawfully available funds therefor, redeem
100% of the public shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the trust
account, including interest earned on the funds held in the trust account and not previously released to us to pay our taxes (less up
to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding public shares, which redemption will
completely extinguish public stockholders’ rights as stockholders (including the right to receive further liquidating distributions,
if any), subject to applicable law; and (iii) as promptly as reasonably possible following such redemption, subject to the approval
of our remaining stockholders and our board of directors, dissolve and liquidate, subject in each case to our obligations under Delaware
law to provide for claims of creditors and the requirements of other applicable law, in which case our public stockholders may only receive
$10.10 per share, or less than such amount in certain circumstances, and our warrants will expire worthless. See “—If third
parties bring claims against us, the proceeds held in the trust account could be reduced and the per-share redemption amount
received by stockholders may be less than $10.10 per share” and other risk factors herein.
Our search for a business combination, and
any target business with which we ultimately consummate a business combination, may be materially adversely affected by the recent coronavirus
(COVID-19) outbreak and the status of debt and equity markets.
In
March 2020, the World Health Organization declared novel coronavirus disease 2019 (COVID-19) a global pandemic. The COVID-19 pandemic
has negatively impacted the global economy, disrupted global supply chains, lowered equity market valuations, created significant volatility
and disruption in financial markets, and increased unemployment levels, all of which may become heightened concerns upon a second wave
of infection or future developments. In addition, the pandemic has resulted in temporary closures of many businesses and the institution
of social distancing and sheltering in place requirements in many states and communities. The COVID-19 pandemic has and a significant
outbreak of other infectious diseases could result in a widespread health crisis that could adversely affect the economies and financial
markets worldwide, and the business of any potential partner business with which we consummate a business combination could be materially
and adversely affected.
Furthermore,
we may be unable to complete a business combination if concerns relating to COVID-19 continue to restrict travel, limit the ability
to have meetings with potential investors or the partner business’s personnel, vendors and services providers are unavailable to
negotiate and consummate a transaction in a timely manner. The extent to which COVID-19 impacts our search for a business combination
will depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning
the severity of COVID-19 and the actions to contain COVID-19 or treat its impact, among others. If the disruptions posed by COVID-19 or
other matters of global concern continue for an extensive period of time, our ability to consummate a business combination, or the operations
of a partner business with which we ultimately consummate a business combination, may be materially adversely affected.
In
addition, our ability to consummate a transaction may be dependent on the ability to raise equity and debt financing which may be impacted
by COVID-19 and other events, including as a result of increased market volatility, decreased market liquidity and third-party financing
being unavailable on terms acceptable to us or at all.
If we seek stockholder approval of our initial business combination,
our sponsor, directors, officers and their affiliates may elect to purchase shares of common stock from public stockholders, in which
case they may influence a vote in favor of a proposed business combination that you do not support and reduce the public “float”
of our Class A common stock or public warrants.
If we seek stockholder approval of our business
combination and we do not conduct redemptions in connection with our business combination pursuant to the tender offer rules, our sponsor,
directors, officers or their respective affiliates may purchase shares or warrants in the open market or in privately negotiated transactions
either prior to or following the consummation of our initial business combination. Our sponsor, directors, officers and their respective
affiliates may also enter into transactions with stockholders and others to provide them with incentives to, among other things, acquire
shares of our common stock or vote their shares in favor of an initial business combination. Our directors, officers or their affiliates
will not make any such purchases when they are in possession of any material non-public information not disclosed to the seller or during
a restricted period under Regulation M under the Exchange Act or in a transaction which would violate Section 9(a)(2) or Rule 10(b)-5
under the Exchange Act. Such a purchase would include a contractual acknowledgement that such stockholder, although still the record
holder of our shares is no longer the beneficial owner thereof and therefore agrees not to exercise its redemption rights. In the event
that our sponsor, directors, officers or their affiliates purchase shares in privately negotiated transactions from public stockholders
who have already elected to exercise their redemption rights, such selling stockholders would be required to revoke their prior elections
to redeem their shares. In addition, if such purchases are made, the public “float” of our Class A common stock or public
warrants and the number of beneficial holders of our securities may be reduced, possibly making it difficult to obtain or maintain the
quotation, listing or trading of our securities on a national securities exchange.
If a stockholder fails to receive notice of our offer to redeem
our public shares in connection with our initial business combination, or fails to comply with the procedures for tendering its shares,
such shares may not be redeemed.
We will comply with the tender offer rules or
proxy rules, as applicable, when conducting redemptions in connection with our initial business combination. Despite our compliance with
these rules, if a stockholder fails to receive our tender offer or proxy materials, as applicable, such stockholder may not become aware
of the opportunity to redeem its shares. In addition, the tender offer documents or proxy materials, as applicable, that we will furnish
to holders of our public shares in connection with our initial business combination will describe the various procedures that must be
complied with in order to validly tender or redeem public shares. For example, we may require our public stockholders seeking to exercise
their redemption rights, whether they are record holders or hold their shares in “street name,” to either tender their certificates
to our transfer agent prior to the date set forth in the tender offer materials mailed to such holders, or up to two business days prior
to the vote on the proposal to approve the initial business combination in the event we distribute proxy materials, or to deliver their
shares to the transfer agent electronically. In the event that a stockholder fails to comply with these procedures, its shares may not
be redeemed. Please see “Proposed Business — Tendering stock certificates in connection with a tender offer or redemption
rights.”
You will not have any rights to or interest in funds from the
trust account, except under limited circumstances. To liquidate your investment, therefore, you may be forced to sell your shares
or warrants, potentially at a loss.
Our public stockholders
will be entitled to receive funds from the trust account only upon the earlier to occur of: (i) the consummation of our initial
business combination; (ii) the redemption of our public shares if we are unable to consummate a business combination within 18 months
from the completion of this offering, subject to applicable law, which is extendable at our sponsor’s option to up to 21 months
as described herein; (iii) the redemption of any public shares properly tendered in connection with a stockholder vote to amend
our amended and restated certificate of incorporation to modify the substance or timing of our obligation to redeem 100% of our public
shares if we do not complete our initial business combination within 18 months from the completion of this offering, or 21 months from
the closing of this offering if we have executed a letter of intent, agreement in principle or definitive agreement for our initial business
combination within 18 months from the closing of; or (iv) otherwise upon our liquidation or in the event our board of directors
resolves to liquidate the trust account and ceases to pursue the consummation of a business combination prior to the expiration of the
18 month period, which is extendable at our sponsor’s option to up to 21 months as described herein (our board of directors may
determine to liquidate the trust account prior to such expiration if it determines, in its business judgment, that it is improbable within
the remaining time that we will be able to identify an attractive business combination or satisfy regulatory and other business and legal
requirements to consummate a business combination). In addition, if our plan to redeem our public shares if we are unable to consummate
an initial business combination within 18 months from the date of this offering is not consummated for any reason, or 21 months
from the closing of this offering if we have executed a letter of intent, agreement in principle or definitive agreement for our initial
business combination within 18 months from the closing of this offering but have not completed our initial business combination
within such 18-month period, Delaware law may require that we submit a plan of dissolution to our then-existing stockholders for
approval prior to the distribution of the proceeds held in our trust account. In that case, public stockholders may be forced to wait
beyond 18 months, which is extendable at our sponsor’s option to up to 21 months as described herein, before they receive funds
from our trust account. In no other circumstances will a public stockholder have any right or interest of any kind in the trust account.
Holders of warrants will not have any rights to the proceeds from our trust account with respect to their warrants. Accordingly, to liquidate
your investment, you may be forced to sell your public shares or warrants, potentially at a loss.
You will not be entitled to protections normally afforded to
investors of many other blank check companies.
Since we intend to use the net proceeds of this
offering and the private placement to complete an initial business combination with a target business that has not been identified, we
may be deemed to be a “blank check” company under the United States securities laws. However, because we will have net
tangible assets in excess of $5.0 million upon the completion of this offering and the private placement and will file a Current Report
on Form 8-K, including an audited balance sheet demonstrating this fact, we are exempt from rules promulgated by the SEC to
protect investors in blank check companies, such as Rule 419 under the Securities Act. Accordingly, investors will not be afforded
the benefits or protections of those rules. Among other things, this means our units will be immediately tradable and we will have a longer
period of time to complete a business combination than would companies subject to Rule 419. Moreover, offerings subject to Rule 419
would prohibit the release of any interest earned on funds held in the trust account to us, except in connection with our consummation
of an initial business combination. For a more detailed comparison of our offering to offerings that comply with Rule 419, please
see “Proposed Business — Comparison of This Offering to Those of Blank Check Companies Subject to Rule 419.”
Because of our limited resources and
the significant competition for business combination opportunities, it may be more difficult for us to complete a business combination.
If we are unable to complete our initial business combination, you may receive only $10.10 per share from our redemption of your shares,
and our warrants will expire worthless.
We expect to encounter
intense competition from other entities having a business objective similar to ours, including private investors (which may be individuals
or investment partnerships), other blank check companies and other entities, domestic and international, competing for the types of businesses
we intend to acquire. Many of these individuals and entities are well-established and have extensive experience in identifying and effecting,
directly or indirectly, acquisitions of companies operating in or providing services to various industries. Many of these competitors
possess greater technical, human and other resources, or more industry knowledge than we do and our financial resources will be relatively
limited when contrasted with those of many of these competitors. While we believe there are numerous target businesses we could potentially
acquire with the net proceeds of this offering and the private placement, our ability to compete with respect to the acquisition of certain
target businesses that are sizable will be limited by our available financial resources. This inherent competitive limitation gives others
an advantage in pursuing the acquisition of certain target businesses. Furthermore, because we are obligated to pay cash for the shares
of Class A common stock which our public stockholders redeem in connection with our initial business combination, target companies
will be aware that this may reduce the resources available to us for our initial business combination. Any of these obligations may place
us at a competitive disadvantage in successfully negotiating a business combination. If we are unable to complete our initial business
combination, our public stockholders may receive only $10.10 per share from our redemption of our shares, and our warrants will expire
worthless.
As the number of special purpose acquisition
companies increases, there may be more competition to find an attractive target for an initial business combination. This could increase
the costs associated with completing our initial business combination and may result in our inability to find a suitable target for our
initial business combination.
In recent years, the number of special purpose
acquisition companies that have been formed has increased substantially. Many companies have entered into business combinations with special
purpose acquisition companies, and there are still many special purpose acquisition companies seeking targets for their initial business
combination, as well as many additional special purpose acquisition companies currently in registration. As a result, at times, fewer
attractive targets may be available, and it may require more time, effort and resources to identify a suitable target for an initial business
combination.
In addition, because there are more special purpose
acquisition companies seeking to enter into an initial business combination with available targets, the competition for available targets
with attractive fundamentals or business models may increase, which could cause target companies to demand improved financial terms. Attractive
deals could also become scarcer for other reasons, such as economic or industry sector downturns, geopolitical tensions or increases in
the cost of additional capital needed to close business combinations or operate targets post-business combination. This could increase
the cost of, delay or otherwise complicate or frustrate our ability to find a suitable target for and/or complete our initial business
combination.
Changes in the market for directors and
officers liability insurance could make it more difficult and more expensive for us to negotiate and complete an initial business combination.
In
recent months, the market for directors and officers liability insurance for special purpose acquisition companies has changed. Fewer
insurance companies are offering quotes for directors and officers liability coverage, the premiums charged for such policies have generally
increased and the terms of such policies have generally become less favorable. There can be no assurance that these trends will not continue.
The
increased cost and decreased availability of directors and officers liability insurance could make it more difficult and more expensive
for us to negotiate an initial business combination. In order to obtain directors and officers liability insurance or modify its
coverage as a result of becoming a public company, the post-business combination entity might need to incur greater expense, accept less
favorable terms or both. However, any failure to obtain adequate directors and officers liability insurance could have an adverse impact
on the post-business combination’s ability to attract and retain qualified officers and directors.
In
addition, even after we were to complete an initial business combination, our directors and officers could still be subject to potential
liability from claims arising from conduct alleged to have occurred prior to the initial business combination. As a result, in order to
protect our directors and officers, the post-business combination entity may need to purchase additional insurance with respect
to any such claims (“run-off insurance”). The need for run-off insurance would be an added expense for the post-business combination
entity, and could interfere with or frustrate our ability to consummate an initial business combination on terms favorable to our investors.
The nominal
purchase price paid by our sponsor for the founder shares may significantly dilute the implied value of your public shares in the event
we consummate an initial business combination, and our sponsor is likely to make a substantial profit on its investment in us in the
event we consummate an initial business combination, even if the business combination causes the trading price of our ordinary shares
to materially decline.
While
we are offering our units at an offering price of $10.00 per unit and the amount in our trust account is initially anticipated to be
$10.10 per public share, implying an initial value of $10.10 per public share, our sponsor paid only a nominal aggregate purchase price
of $25,000 for the founder shares, or approximately $0.003 per share. As a result, the value of your public shares may be significantly
diluted in the event we consummate an initial business combination. For example, the following table shows the public stockholders’
and sponsor’s investment per share and how that compares to the implied value of one of our shares upon the consummation of our
initial business combination if at that time we were valued at $214,500,000, which is the amount we would have for our initial business
combination in the trust account assuming the underwriters’ over-allotment option is not exercised, no interest is earned on the
funds held in the trust account, and no public shares are redeemed in connection with our initial business combination. At such valuation,
each of our ordinary shares would have an implied value of $7.03 per share, which is a 30.7% decrease as compared to the initial implied
value per public share of $10.10.
|
Public shares
|
|
|
22,000,000
|
|
|
Founder shares
|
|
|
7,630,000
|
|
|
Private placement shares
|
|
|
890,000
|
|
|
Total shares
|
|
|
30,520,000
|
|
|
Total funds in trust available for initial business combination
(less deferred underwriting commissions)
|
|
$
|
214,500,000
|
|
|
Initial implied value per public share
|
|
$
|
10.00
|
|
|
Implied value per share upon consummation of initial business
combination
|
|
$
|
7.03
|
|
Note that redemptions
of our public shares in connection with our initial business combination would further reduce the implied value of our Class A common
stock. For instance, in the example above, if 50% of the public shares were redeemed in connection with our initial business combination,
the implied value per share would be $5.30.
While
the implied value of our public shares may be diluted, the implied value of $7.03 per share in the example above would represent a
significant implied profit for our sponsor relative to the initial purchase price of the founder shares. Our sponsor has committed to
invest an aggregate of $8,925,000 in us in connection with this offering, comprised of the $25,000 purchase price for the founder shares
and the $8,900,000 purchase price for the private placement warrants. At $7.03 per share, the 7,630,000 founder shares and 890,000
private placement shares would have an aggregate implied value of $59,895,600. As a result, even if the trading price of our ordinary
shares significantly declines (whether because of a substantial amount of redemptions of our public shares or for any other reason),
our sponsor will stand to make significant profit on its investment in us. In addition, our sponsor could potentially recoup its entire
investment in us even if the trading price of our common stock were as low as $1.05 per share and even if the private placement warrants
are worthless. As a result, our sponsor is likely to make a substantial profit on its investment in us even if we select and consummate
an initial business combination that causes the trading price of our ordinary shares to decline, while our public stockholders who purchased
their units in this offering could lose significant value in their public shares. Our sponsor may therefore be economically incentivized
to consummate an initial business combination with a riskier, weaker-performing or less-established target business than would be the
case if our sponsor had paid the same per share price for the founder shares as our public stockholders paid for their public shares.
The value of
the founder shares following completion of our initial business combination is likely to be substantially higher than the nominal price
paid for them, even if the trading price of our common stock at such time is substantially less than $10.10 per share.
Upon the closing of this
offering, assuming no exercise of the underwriter’s over-allotment option, our sponsor will have invested in us an aggregate of
$8,925,000, comprised of the $25,000 purchase price for the founder shares and the $8,900,000 purchase price for the private placement
units, comprised of private placement shares and private placement warrants. Assuming a trading price of $10.00 per share upon consummation
of our initial business combination, the 7,630,000 founder shares and 890,000 private placement shares would have an aggregate implied
value of $85,200,000. Even if the trading price of our common stock was as low as $1.05 per share and the private placement warrants
were worthless, the value of the founder shares and private placement shares would be equal to the sponsor’s initial investment
in us. As a result, our sponsor is likely to be able to recoup its investment in us and make a substantial profit on that investment,
even if our public shares have lost significant value (whether because of a substantial amount of redemptions of our public shares or
any other reason). Accordingly, our management team, which owns interests in our sponsor, may have an economic incentive that differs
from that of the public stockholders to pursue and consummate an initial business combination rather than to liquidate and to return
all of the cash in the trust to the public stockholders, even if that business combination were with a riskier or less-established target
business. For the foregoing reasons, you should consider our management team's financial incentive to complete an initial business combination
when evaluating whether to redeem your shares prior to or in connection with the initial business combination.
We may issue our shares to investors in
connection with our initial business combination at a price that is less than the prevailing market price of our shares at that time.
In connection with our
initial business combination, we may issue shares to investors in private placement transactions (so-called PIPE transactions) at a price
of $10.00 per share. The purpose of such issuances will be to enable us to provide sufficient liquidity to the post-business combination
entity. The price of the shares we issue may therefore be less, and potentially significantly less, than the market price for our shares
at such time.
We may engage the underwriter or its affiliates
to provide additional services to us after this offering, which may include acting as financial advisor in connection with an initial
business combination or as placement agent in connection with a related financing transaction. The underwriter is entitled to receive
deferred commissions that will be released from the trust only on a completion of an initial business combination. These financial incentives
may cause the underwriter to have potential conflicts of interest in rendering any such additional services to us after this offering,
including, for example, in connection with the sourcing and consummation of an initial business combination.
We may engage the underwriter or its affiliates
to provide additional services to us after this offering, including, for example, identifying potential targets, providing financial advisory
services, acting as a placement agent in a private offering or arranging debt financing. We may pay the underwriter or its affiliates
fair and reasonable fees or other compensation that would be determined at that time in an arm’s length negotiation; provided that
no agreement will be entered into with the underwriter or its affiliates and no fees or other compensation for such services will be paid
to the underwriter or its affiliates prior to the date that is 60 days from the date of this prospectus, unless such payment would not
be deemed underwriting compensation in connection with this offering. The underwriter is also entitled to receive deferred commissions
that are conditioned on the completion of an initial business combination. The fact that the underwriter or its affiliates’ financial
interests are tied to the consummation of a business combination transaction may give rise to potential conflicts of interest in providing
any such additional services to us, including potential conflicts of interest in connection with the sourcing and consummation of an initial
business combination.
If the net proceeds of this offering and the sale of the placement
units not being held in the trust account are insufficient, it could limit the amount available to fund our search for a target business
or businesses and complete our initial business combination and we will depend on loans from our sponsor or management team to fund our
search for a business combination, to pay our taxes and to complete our initial business combination. If we are unable to obtain
these loans, we may be unable to complete our initial business combination.
Of the net proceeds of
this offering and the sale of the placement units, approximately $1,760,000 (or $1,770,000 if the underwriter exercises its overallotment
option in full) will be available to us initially outside the trust account to fund our working capital requirements. In the event that
our offering expenses exceed our estimate of $540,000, we may fund such excess with funds not to be held in the trust account. In such
case, the amount of funds we intend to be held outside the trust account would decrease by a corresponding amount. Conversely, in the
event that the offering expenses are less than our estimate of $540,000, the amount of funds we intend to be held outside the trust account
would increase by a corresponding amount. If we are required to seek additional capital, we would need to borrow funds from our sponsor,
management team or other third parties to operate, or we may be forced to liquidate. None of our sponsor, members of our management team
nor any of their affiliates is under any obligation to advance funds to us in such circumstances. Any such advances would be repaid only
from funds held outside the trust account or from funds released to us upon completion of our initial business combination. Up to $2,000,000
of such loans may be convertible into units at a price of $10.00 per unit at the option of the lender at the time of the business combination.
We do not expect to seek loans from parties other than our sponsor or an affiliate of our sponsor as we do not believe third parties
will be willing to loan such funds and provide a waiver against any and all rights to seek access to funds in our trust account. If we
are unable to obtain these loans, we may be unable to complete our initial business combination. If we are unable to complete our initial
business combination because we do not have sufficient funds available to us, we will be forced to cease operations and liquidate the
trust account. Consequently, our public stockholders may only receive $10.10 per share on our redemption of our public shares, and our
warrants will expire worthless. In certain circumstances, our public stockholders may receive less than $10.10 per share on the redemption
of their shares. See “— If third parties bring claims against us, the proceeds held in the trust account could be reduced
and the per-share redemption amount received by stockholders may be less than $10.10 per share” and other risk factors in this
section.
Subsequent to consummation of our initial business combination,
we may be required to take write-downs or write-offs, restructuring and impairment or other charges that could have a significant negative
effect on our financial condition, results of operations and our stock price, which could cause you to lose some or all of your investment.
Even if we conduct extensive due diligence on
a target business with which we combine, we cannot assure you that this examination will uncover all material risks that may be presented
by a particular target business, or that factors outside of the target business and outside of our control will not later arise. Even
if our due diligence successfully identifies the principal risks, unexpected risks may arise and previously known risks may materialize
in a manner not consistent with our preliminary risk analysis. As a result, from time to time following our initial business combination,
we may be forced to write-down or write-off assets, restructure our operations, or incur impairment or other charges that could result
in our reporting losses. Even though these charges may be non-cash items and not have an immediate impact on our liquidity, the fact that
we report charges of this nature could contribute to negative market perceptions about us or our securities. In addition, charges of this
nature may cause us to violate net worth or other covenants to which we may be subject as a result of assuming pre-existing debt held
by a target business or by virtue of our obtaining post-combination debt financing. Accordingly, any securityholders who choose to remain
securityholders following the initial business combination could suffer a reduction in the value of their securities. Such securityholders
are unlikely to have a remedy for such reduction in value unless they are able to successfully claim that the reduction was due to the
breach by our officers or directors of a duty of care or other fiduciary duty owed to them, or if they are able to successfully bring
a private claim under securities laws that the proxy solicitation or tender offer materials, as applicable, relating to the initial business
combination constituted an actionable material misstatement or omission.
If third parties bring claims against
us, the proceeds held in the trust account could be reduced and the per-share redemption amount received by stockholders may be less
than $10.10 per share.
Placing funds in the trust account may not protect
those funds from third party claims against us. Although we will seek to have all vendors, service providers, prospective target businesses
or other entities with which we do business execute agreements with us waiving any right, title, interest or claim in or to any monies
held in the trust account for the benefit of our public stockholders, such parties may not execute such agreements or, even if they execute
such agreements, they may not be prevented from bringing claims against the trust account, including, but not limited to, claims for fraudulent
inducement, breach of fiduciary responsibility or other similar claims, as well as claims challenging the enforceability of the waiver.
If any third party refuses to execute an agreement waiving claims to the monies held in the trust account, our management will perform
an analysis of the alternatives available to it and will only enter into an agreement without a waiver if management believes that such
third party’s engagement would be significantly more beneficial to us than any available alternative. If we do not obtain a waiver
from a third party, we will obtain the written consent of our sponsor before entering into an agreement with such third party.
Examples of possible instances
where we may engage a third party that refuses to execute a waiver include the engagement of a third party consultant whose particular
expertise or skills management believes to be significantly superior to those of other consultants who would execute a waiver or in cases
where management is unable to find a service provider willing to execute a waiver and where our sponsor executes a written consent. In
addition, there is no guarantee that such entities will agree to waive any claims they may have in the future as a result of, or arising
out of, any negotiations, contracts or agreements with us and will not seek recourse against the trust account for any reason. Upon redemption
of our public shares, if we are unable to complete a business combination within the required time frame, or upon the exercise of a redemption
right in connection with a business combination, we will be required to provide for payment of claims of creditors that were not waived
that may be brought against us within the 10 years following redemption. Accordingly, the per-share redemption amount received by
public stockholders could be less than the $10.10 per share initially held in the trust account due to claims of such creditors. Pursuant
to a written agreement, Emerald ESG Sponsor, LLC has agreed that it will be liable to us if and to the extent any claims by a third party
for services rendered or products sold to us, or a prospective target business with which we discussed entering into a transaction agreement,
reduce the amounts in the trust account to below $10.10 per share except as to any claims by a third party who executed a waiver of rights
to seek access to the trust account and except as to any claims under our indemnity of the underwriter of this offering against certain
liabilities, including liabilities under the Securities Act. Moreover, if an executed waiver is deemed to be unenforceable against a
third party, Emerald ESG Sponsor, LLC will not be responsible to the extent of any liability for such third party claims. We have not
independently verified whether Emerald ESG Sponsor, LLC has sufficient funds to satisfy its indemnity obligations, we have not asked
it to reserve for such indemnification obligations and we believe that its only assets are securities of our company. Therefore, we cannot
assure you that Emerald ESG Sponsor, LLC will be able to satisfy these obligations.
Our directors may decide not to enforce the indemnification obligations
of Emerald ESG Sponsor, LLC, resulting in a reduction in the amount of funds in the trust account available for distribution to our public
stockholders.
If proceeds in the trust
account are reduced below $10.10 per public share and Emerald ESG Sponsor, LLC asserts that it is unable to satisfy its obligations or
that it has no indemnification obligations related to a particular claim, our independent directors would determine whether to take legal
action against Emerald ESG Sponsor, LLC to enforce its indemnification obligations. While we currently expect that our independent directors
would take legal action on our behalf against Emerald ESG Sponsor, LLC to enforce its indemnification obligations to us, it is possible
that our independent directors in exercising their business judgment and subject to their fiduciary duties may choose not to do so in
any particular instance. If our independent directors choose not to enforce these indemnification obligations, the amount of funds in
the trust account available for distribution to our public stockholders may be reduced below $10.10 per share.
We may not have sufficient funds to satisfy indemnification claims
of our directors and executive officers.
We have agreed to indemnify our officers and directors
to the fullest extent permitted by law. However, our officers and directors have agreed to waive any right, title, interest or claim of
any kind in or to any monies in the trust account and to not seek recourse against the trust account for any reason whatsoever. Accordingly,
any indemnification provided will be able to be satisfied by us only if (i) we have sufficient funds outside of the trust account
or (ii) we consummate an initial business combination. Our obligation to indemnify our officers and directors may discourage stockholders
from bringing a lawsuit against our officers or directors for breach of their fiduciary duty. These provisions also may have the effect
of reducing the likelihood of derivative litigation against our officers and directors, even though such an action, if successful, might
otherwise benefit us and our stockholders. Furthermore, a stockholder’s investment may be adversely affected to the extent we pay
the costs of settlement and damage awards against our officers and directors pursuant to these indemnification provisions.
If, after we distribute the proceeds in the trust account to
our public stockholders, we file a bankruptcy petition or an involuntary bankruptcy petition is filed against us that is not dismissed,
a bankruptcy court may seek to recover such proceeds, and the members of our board of directors may be viewed as having breached their
fiduciary duties to our creditors, thereby exposing the members of our board of directors and us to claims of punitive damages.
If, after we distribute the proceeds in the trust
account to our public stockholders, we file a bankruptcy petition or an involuntary bankruptcy petition is filed against us that is not
dismissed, any distributions received by stockholders could be viewed under applicable debtor/creditor and/or bankruptcy laws as either
a “preferential transfer” or a “fraudulent conveyance.” As a result, a bankruptcy court could seek to recover
all amounts received by our stockholders. In addition, by making distributions to public stockholders before making provision for creditors,
our board of directors may be viewed as having breached its fiduciary duty to our creditors and/or having acted in bad faith, thereby
exposing itself and us to claims for punitive damages.
If, before distributing the proceeds in the trust account to
our public stockholders, we file a bankruptcy petition or an involuntary bankruptcy petition is filed against us that is not dismissed,
the claims of creditors in such proceeding may have priority over the claims of our stockholders and the per-share amount that would otherwise
be received by our stockholders in connection with our liquidation may be reduced.
If, before distributing the proceeds in the trust
account to our public stockholders, we file a bankruptcy petition or an involuntary bankruptcy petition is filed against us that is not
dismissed, the proceeds held in the trust account could be subject to applicable bankruptcy law, and may be included in our bankruptcy
estate and subject to the claims of third parties with priority over the claims of our stockholders. To the extent any bankruptcy claims
deplete the trust account, the per-share amount that would otherwise be received by our stockholders in connection with our liquidation
may be reduced.
Our stockholders may be held liable for claims by third parties
against us to the extent of distributions received by them upon redemption of their shares.
Under the Delaware General
Corporation Law, or DGCL, stockholders may be held liable for claims by third parties against a corporation to the extent of distributions
received by them in a dissolution. The pro rata portion of our trust account distributed to our public stockholders upon the redemption
of our public shares in the event we do not consummate our initial business combination within 18 months from the completion of this
offering, or 21 months from the closing of this offering if we have executed a letter of intent, agreement in principle or definitive
agreement for our initial business combination within 18 months from the closing of, may be considered a liquidation distribution under
Delaware law. If a corporation complies with certain procedures set forth in Section 280 of the DGCL intended to ensure that it
makes reasonable provision for all claims against it, including a 60-day notice period during which any third-party claims can be brought
against the corporation, a 90-day period during which the corporation may reject any claims brought, and an additional 150-day waiting
period before any liquidating distributions are made to stockholders, any liability of stockholders with respect to a liquidating distribution
is limited to the lesser of such stockholder’s pro rata share of the claim or the amount distributed to the stockholder, and any
liability of the stockholder would be barred after the third anniversary of the dissolution. However, it is our intention to redeem our
public shares as soon as reasonably possible following our 18th month (or 21st month if extended at our sponsor’s option
as described herein) if we do not consummate an initial business combination and, therefore, we do not intend to comply with those procedures.
Because we will not be
complying with Section 280, Section 281(b) of the DGCL requires us to adopt a plan, based on facts known to us at such
time that will provide for our payment of all existing and pending claims or claims that may be potentially brought against us within
the 10 years following our dissolution. However, because we are a blank check company, rather than an operating company, and our
operations will be limited to searching for prospective target businesses to acquire, the only likely claims to arise would be from our
vendors (such as lawyers or investment bankers) or prospective target businesses. If our plan of distribution complies with Section 281(b) of
the DGCL, any liability of stockholders with respect to a liquidating distribution is limited to the lesser of such stockholder’s
pro rata share of the claim or the amount distributed to the stockholder, and any liability of the stockholder would likely be barred
after the third anniversary of the dissolution. We cannot assure you that we will properly assess all claims that may be potentially
brought against us. As such, our stockholders could potentially be liable for any claims to the extent of distributions received by them
(but no more) and any liability of our stockholders may extend beyond the third anniversary of such date. Furthermore, if the pro rata
portion of our trust account distributed to our public stockholders upon the redemption of our public shares if we do not consummate
our initial business combination within 18 months from the completion of this offering, or 21 months from the closing of this offering
if we have executed a letter of intent, agreement in principle or definitive agreement for our initial business combination within 18
months from the closing of, is not considered a liquidation distribution under Delaware law and such redemption distribution is deemed
to be unlawful, then pursuant to Section 174 of the DGCL, the statute of limitations for claims of creditors could then be six years
after the unlawful redemption distribution, instead of three years, as in the case of a liquidation distribution.
We may not hold an annual meeting of stockholders until after
we consummate a business combination.
We may not hold an annual meeting of stockholders
until after we consummate a business combination (unless required by Nasdaq), and thus may not be in compliance with Section 211(b) of
the DGCL, which requires that an annual meeting of stockholders be held for the purposes of electing directors in accordance with a company’s
bylaws unless directors are elected by written consent in lieu of such a meeting. Therefore, if our stockholders want us to hold an annual
meeting prior to our consummation of a business combination, they may attempt to force us to hold one by submitting an application to
the Delaware Court of Chancery in accordance with Section 211(c) of the DGCL. Even if an annual meeting was held for the purpose
of electing directors prior to the consummation of a business combination, only holders of Class B common stock would be entitled
to notice of such meeting and to vote at such meeting.
Because we have not selected any specific target businesses with
which to pursue a business combination, you will be unable to ascertain the merits or risks of any particular target business’ operations.
We will seek to consummate a business combination
with an operating company in the Target Sectors, but may also pursue acquisition opportunities in other business sectors or geographic
regions, except that we will not, under our amended and restated certificate of incorporation, be permitted to effectuate a business combination
with another blank check company or similar company with nominal operations. Because we have not yet identified or approached any specific
target business with respect to a business combination, you have no basis to evaluate the possible merits or risks of any particular target
business’s operations, results of operations, cash flows, liquidity, financial condition or prospects. If we consummate our initial
business combination, we may be affected by numerous risks inherent in the business operations of the entity with which we combine. Because
we will seek to acquire businesses that potentially need financial, operational, strategic or managerial redirection, we may be affected
by the risks inherent in the business and operations of a financially or operationally unstable entity. Although our officers and directors
will endeavor to evaluate the risks inherent in a particular target business, we cannot assure you that we will properly ascertain or
assess all of the significant risk factors or that we will have adequate time to complete due diligence. Furthermore, some of these risks
may be outside of our control and leave us with no ability to control or reduce the chances that those risks will adversely impact a target
business. Accordingly, any securityholders who choose to remain securityholders following the initial business combination could suffer
a reduction in the value of their securities. We also cannot assure you that an investment in our units will ultimately prove to be more
favorable to investors than a direct investment, if such opportunity were available, in an acquisition target.
We may seek investment opportunities in sectors outside of our
industry focus (which may or may not be outside of our management’s area of expertise).
Although we currently intend to consummate a business
combination in the sectors of clean/renewable energy; water sustainability; agtech; shared economy software; and next generation mobility
(the “Target Sectors”, we will consider a business combination outside this industry if a business combination candidate is
presented to us and we determine that such candidate offers an attractive investment opportunity for our company. If we elect to pursue
an investment outside of the Target Sectors, our management’s expertise in that industry would not be directly applicable to its
evaluation or operation, and the information contained herein might not be relevant to an understanding of the business that we elect
to acquire.
Although we have identified general criteria and guidelines that
we believe are important in evaluating prospective target businesses, we may enter into a business combination with a target that does
not meet such criteria and guidelines and, as a result, the target business with which we enter into our initial business combination
may not have attributes entirely consistent with our general criteria and guidelines.
Although we have identified
specific criteria and guidelines for evaluating prospective target businesses, it is possible that a target business with which we enter
into a business combination will not have all of these positive attributes. If we consummate a business combination with a target that
does not meet some or all of these guidelines, such combination may not be as successful as a combination with a business that does meet
all of our general criteria and guidelines. We also cannot assure you that an investment in our units will not ultimately prove to be
less favorable to investors in this offering than a direct investment, if an opportunity were available, in an initial business combination
candidate. In addition, if we announce a prospective business combination with a target that does not meet our general criteria and guidelines,
a greater number of stockholders may exercise their redemption rights, which may make it difficult for us to meet any closing condition
with a target business that requires us to have a minimum net worth or a certain amount of cash. In addition, if stockholder approval
of the transaction is required by law or Nasdaq, or we decide to obtain stockholder approval for business or other reasons, it may be
more difficult for us to obtain stockholder approval of our initial business combination if the target business does not meet our general
criteria and guidelines. If we are unable to complete our initial business combination, our public stockholders may only receive $10.10
per share on our redemption, and our warrants will expire worthless.
We may seek acquisition opportunities with an early stage company,
a financially unstable business or an entity lacking an established record of revenue or earnings, which could subject us to volatile
revenues or earnings, intense competition and difficulties in obtaining and retaining key personnel.
To the extent we complete our initial business
combination with an early stage company, a financially unstable business or an entity lacking an established record of sales or earnings,
we may be affected by numerous risks inherent in the operations of the business with which we combine. These risks include investing in
a business without a proven business model and with limited historical financial data, volatile revenues or earnings, intense competition
and difficulties in obtaining and retaining key personnel. Although our officers and directors will endeavor to evaluate the risks inherent
in a particular target business, we may not be able to properly ascertain or assess all of the significant risk factors and we may not
have adequate time to complete due diligence. Furthermore, some of these risks may be outside of our control and leave us with no ability
to control or reduce the chances that those risks will adversely impact a target business.
We are not required to obtain an opinion from an independent
investment banking firm and, consequently, you may have no assurance from an independent source that the price we are paying for the target
in our initial business combination is fair to our stockholders from a financial point of view.
Unless we consummate our initial business combination
with an affiliated entity or our board cannot independently determine the fair market value of the target business, we are not required
to obtain an opinion from an independent investment banking firm that the price we are paying is fair to our stockholders from a financial
point of view. If we do not obtain an opinion, our stockholders will be relying on the judgment of our board of directors, who will determine
fair market value based on standards generally accepted by the financial community. Such standards used will be disclosed in our tender
offer documents or proxy solicitation materials, as applicable, related to our initial business combination.
If we hold a stockholder vote and must furnish our stockholders
with target business financial statements, we may lose the ability to complete an otherwise advantageous initial business combination
with some prospective target businesses.
If we hold a stockholder
vote to approve our initial business combination, the federal proxy rules require that a proxy statement with respect to a vote
on a business combination meeting certain financial significance tests include historical and/or pro forma financial statement disclosure.
If we make a tender offer for our public shares, we will include the same financial statement disclosure in our tender offer documents
that is required under the tender offer rules. These financial statements must be prepared in accordance with accounting principles generally
accepted in the United States of America, or GAAP, or international financial reporting standards as issued by the International
Accounting Standards Board, or IFRS, depending on the circumstances, and the historical financial statements must be audited in accordance
with the standards of the Public Company Accounting Oversight Board (United States), or PCAOB. These financial statement requirements
may limit the pool of potential target businesses we may acquire because some targets may be unable to provide such statements in time
for us to disclose such statements in accordance with federal proxy rules and consummate our initial business combination within
our 18 month time frame (or 18 month time frame if extended at the option of our sponsor as described herein).
The requirement that we maintain a minimum net worth or retain
a certain amount of cash could increase the probability that we will be unable to complete a proposed business combination and that you
would have to wait for liquidation in order to redeem your stock.
If, pursuant to the terms of our proposed business
combination, we are required to maintain a minimum net worth or retain a certain amount of cash in trust in order to consummate the business
combination, the ability of our public stockholders to cause us to redeem their shares in connection with such proposed transaction will
increase the risk that we will not meet that condition and, accordingly, that we will not be able to complete the proposed transaction.
If we do not complete a proposed business combination, you would not receive your pro rata portion of the trust account until we liquidate
or you are able to sell your stock in the open market. If you were to attempt to sell your stock in the open market at that time, the
price you receive could represent a discount to the pro rata amount in our trust account. In either situation, you may suffer a material
loss on your investment or lose the benefit of funds expected in connection with our redemption until we liquidate.
Compliance obligations under the Sarbanes-Oxley Act may make
it more difficult for us to effectuate a business combination, require substantial financial and management resources, and increase the
time and costs of completing an acquisition.
The Sarbanes-Oxley Act requires that we maintain
a system of internal controls and, beginning with our annual report on Form 10-K for the fiscal year ending December 31, 2022,
that we evaluate and report on such system of internal controls. In addition, once we are no longer an “emerging growth company,”
we must have our system of internal controls audited. The fact that we are a blank check company makes compliance with the requirements
of the Sarbanes-Oxley Act particularly burdensome on us as compared to other public companies because a target company with which we seek
to complete a business combination may not be in compliance with the provisions of the Sarbanes-Oxley Act regarding adequacy of its internal
controls. The development of the internal controls of any such entity in order to achieve compliance with the Sarbanes-Oxley Act may increase
the time and costs necessary to complete any such acquisition.
We do not have a specified maximum redemption threshold. The
absence of such a redemption threshold will make it easier for us to consummate a business combination with which a substantial number
of our stockholders do not agree.
We may be able to consummate a business combination
even though a substantial number of our public stockholders do not agree with the transaction and have redeemed their shares or, if we
seek stockholder approval of our initial business combination and do not conduct redemptions in connection with our business combination
pursuant to the tender offer rules, if our sponsor, officers, directors or their affiliates have entered into privately negotiated agreements
with public stockholders to acquire public shares. However, in no event will we redeem our public shares in an amount that would cause
our net tangible assets to be less than $5,000,001 upon consummation of our initial business combination, and the amount that we redeem
may be further limited by the terms and conditions of our initial business combination. In such case, we would not proceed with the redemption
of our public shares and the related initial business combination, and instead may search for an alternate business combination.
In order to effectuate an initial business combination, blank
check companies have, in the recent past, amended various provisions of their charters and other governing instruments, including their
warrant agreements. We cannot assure you that we will not seek to amend our amended and restated certificate of incorporation or governing
instruments in a manner that will make it easier for us to complete our initial business combination that our stockholders may not support.
In order to effectuate
an initial business combination, blank check companies have, in the recent past, amended various provisions of their charters and modified
governing instruments, including their warrant agreements. For example, blank check companies have amended the definition of business
combination, increased redemption thresholds and extended the time to consummate an initial business combination and, with respect to
their warrants, amended their warrant agreements to require the warrants to be exchanged for cash and/or other securities. Amending our
amended and restated certificate of incorporation will require the approval of holders of 65% of our common stock, and amending our warrant
agreement will require a vote of holders of at least 65% of the public warrants. In addition, our amended and restated certificate of
incorporation requires us to provide our public stockholders with the opportunity to redeem their public shares for cash if we propose
an amendment to our amended and restated certificate of incorporation (A) to modify the substance or timing of our obligation to
redeem 100% of our public shares if we do not complete our initial business combination within 18 months from the closing of this offering,
or 21 months from the closing of this offering if we have executed a letter of intent, agreement in principle or definitive agreement
for our initial business combination within 18 months from the closing of this offering but have not completed our initial business
combination within such 18-month period, or (B) with respect to any other provision relating to stockholders’ rights
or pre-initial business combination activity. To the extent any such amendments would be deemed to fundamentally change the nature of
any securities offered through this registration statement, we would register, or seek an exemption from registration for, the affected
securities. We cannot assure you that we will not seek to amend our charter or governing instruments or extend the time to consummate
an initial business combination in order to effectuate our initial business combination.
We may have a limited ability to assess the management of a prospective
target business and, as a result, may effect our initial business combination with a target business whose management may not have the
skills, qualifications or abilities to manage a public company.
When evaluating the desirability of effecting
a business combination with a prospective target business, our ability to assess the target business’ management may be limited
due to a lack of time, resources or information. Our assessment of the capabilities of the target’s management, therefore, may prove
to be incorrect and such management may lack the skills, qualifications or abilities we expected. Should the target’s management
not possess the skills, qualifications or abilities necessary to manage a public company, the operations and profitability of the post-combination
business may be negatively impacted.
The provisions of our amended and restated
certificate of incorporation that relate to our pre-business combination activity (and corresponding provisions of the agreement governing
the release of funds from our trust account), including an amendment to permit us to withdraw funds from the trust account such that
the per share amount investors will receive upon any redemption or liquidation is substantially reduced or eliminated, may be amended
with the approval of holders of 65% of our common stock, which is a lower amendment threshold than that of some other blank check companies.
It may be easier for us, therefore, to amend our amended and restated certificate of incorporation and the trust agreement to facilitate
the completion of an initial business combination that some of our stockholders may not support.
Our amended and restated
certificate of incorporation will provide that any of its provisions related to pre-initial business combination activity (including
the requirement to deposit proceeds of this offering and the private placement into the trust account and not release such amounts except
in specified circumstances, and to provide redemption rights to public stockholders as described herein and including to permit us to
withdraw funds from the trust account such that the per share amount investors will receive upon any redemption or liquidation is substantially
reduced or eliminated) may be amended if approved by holders of 65% of our common stock entitled to vote thereon, and corresponding provisions
of the trust agreement governing the release of funds from our trust account may be amended if approved by holders of 65% of our common
stock entitled to vote thereon. In all other instances, our amended and restated certificate of incorporation may be amended by holders
of a majority of our outstanding common stock entitled to vote thereon, subject to applicable provisions of the DGCL or applicable stock
exchange rules. We may not issue additional securities that can vote with common stockholders on matters related to our pre-initial business
combination activity, on any amendment to certain provisions of our amended and restated certificate of incorporation or on our initial
business combination. Our initial stockholders, who will collectively beneficially own approximately 27.9% of the sum of the total number
of all shares of common stock issued and outstanding upon completion of this offering (including 890,000 placement shares (or 990,000
if the underwriter’s overallotment option is exercised in full) held by our sponsor) (assuming they do not purchase any units in
this offering), will participate in any vote to amend our amended and restated certificate of incorporation and/or trust agreement and
will have the discretion to vote in any manner they choose. As a result, we may be able to amend the provisions of our amended and restated
certificate of incorporation which govern our pre-initial business combination behavior more easily than some other blank check companies,
and this may increase our ability to complete an initial business combination with which you do not agree. Our stockholders may pursue
remedies against us for any breach of our amended and restated certificate of incorporation.
Our sponsor, officers
and directors have agreed, pursuant to a written agreement with us, that they will not propose any amendment to our amended and restated
certificate of incorporation (i) to modify the substance or timing of our obligation to redeem 100% of our public shares if we do
not complete our initial business combination within 18 months from the closing of this offering, or 21 months from the closing
of this offering if we have executed a letter of intent, agreement in principle or definitive agreement for our initial business combination
within 18 months from the closing of this offering but have not completed our initial business combination within such 18-month period,
or (ii) with respect to any other provision relating to stockholders’ rights or pre-initial business combination activity,
unless we provide our public stockholders with the opportunity to redeem their shares of Class A common stock upon approval of any
such amendment at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the trust account (net of taxes
payable), divided by the number of then outstanding public shares. These agreements are contained in a letter agreement that we have
entered into with our sponsor, officers and directors. Our stockholders are not parties to, or third-party beneficiaries of, these agreements
and, as a result, will not have the ability to pursue remedies against our sponsor, officers or directors for any breach of these agreements.
As a result, in the event of a breach, our stockholders would need to pursue a stockholder derivative action, subject to applicable law.
We may be unable to obtain additional
financing to complete our initial business combination or to fund the operations and growth of a target business, which could compel
us to restructure or abandon a particular business combination. If we are unable to complete our initial business combination, our public
stockholders may only receive $10.10 per share on our redemption.
Because of the size of
our initial business combination, the obligation to repurchase for cash a significant number of shares from stockholders who elect redemption
in connection with our initial business combination, or the terms of negotiated transactions to purchase shares in connection with our
initial business combination, we may be required to seek additional financing or to abandon the proposed business combination. We may
be unable to obtain any necessary financing on acceptable terms, if at all. The current economic environment has made it especially difficult
for companies to obtain acquisition financing. To the extent that additional financing proves to be unavailable when needed to consummate
our initial business combination, we would be compelled to either restructure or abandon the transaction and seek an alternative target
business candidate. If we are unable to complete our initial business combination, our public stockholders may only receive $10.10 per
share on our redemption.
In addition, even if we do not need additional
financing to consummate our initial business combination, we may require such financing to fund the operations or growth of the target
business. The failure to secure additional financing could have a material adverse effect on the continued development or growth of the
target business. None of our officers, directors or stockholders is required to provide any financing to us after a business combination.
Our initial stockholders will control the election of our board
of directors until consummation of our initial business combination and will hold a substantial interest in us. As a result, they will
elect all of our directors prior to the consummation of our initial business combination and may exert a substantial influence on actions
requiring a stockholder vote, potentially in a manner that you do not support.
Upon the closing of this
offering, our initial stockholders will own approximately 27.9% of our outstanding common stock, including 890,000 placement shares or
990,000 if the underwriter’s overallotment option is exercised in full) held by our sponsor (assuming they do not purchase any
units in this offering). In addition, the founder shares, all of which are held by our initial stockholders, will entitle the holders
to elect all of our directors prior to the consummation of our initial business combination. Holders of our public shares will have no
right to vote on the election of directors during such time. These provisions of our amended and restated certificate of incorporation
may only be amended by a majority of at least 90% of our common stock voting at a stockholder meeting. As a result, you will not have
any influence over the election of directors prior to our initial business combination.
Neither our initial stockholders nor, to our knowledge,
any of our officers or directors, have any current intention to purchase additional securities, other than as disclosed in this prospectus.
Factors that would be considered in making such additional purchases would include consideration of the current trading price of our Class A
common stock. In addition, as a result of their substantial ownership in our company, our initial stockholders may exert a substantial
influence on other actions requiring a stockholder vote, potentially in a manner that you do not support, including amendments to our
amended and restated certificate of incorporation and approval of major corporate transactions. If our initial stockholders purchase any
additional shares of common stock in the aftermarket or in privately negotiated transactions, this would increase their influence over
these actions. Accordingly, our initial stockholders will exert significant influence over actions requiring a stockholder vote.
Holders of founder shares and purchasers of placement units will
control a substantial interest in us and thus may exert a substantial influence on actions requiring a stockholder vote, potentially in
a manner that you do not support.
Upon completion of this
offering, our sponsor will own approximately 27.9% of our issued and outstanding shares of common stock (or 27.8% if the underwriter
exercises its overallotment option in full). Accordingly, they may exert a substantial influence on actions requiring a stockholder vote,
potentially in a manner that you do not support, including amendments to our amended and restated certificate of incorporation. Holders
of founder shares are not restricted from purchasing Class A common stock in the aftermarket or in privately negotiated transactions,
which would increase their control. The holders of founder shares do not have any current intention to purchase additional securities,
other than as disclosed in this prospectus. Factors that would be considered in making such additional purchases would include consideration
of the current trading price of our common stock. In addition, our board of directors, whose members were elected by our sponsor, is
divided into two classes with only one class of directors being elected in each year and each class (except for those directors appointed
prior to our first annual meeting of stockholders) serving a two-year term. We may not hold an annual meeting of stockholders to elect
new directors prior to the consummation of our initial business combination, in which case all of the current directors will continue
in office at least until the consummation of the business combination. If there is an annual meeting, as a consequence of our “staggered”
board of directors, only a minority of the board of directors will be considered for election and our sponsor, because of its ownership
position, will have considerable influence regarding the outcome. Accordingly, you should anticipate that holders of founder shares and
purchasers of placement units will continue to exert control at least until the consummation of our initial business combination.
Resources could be wasted in researching
acquisitions that are not consummated, which could materially adversely affect subsequent attempts to locate another target business
and consummate our initial business combination. If we are unable to complete our initial business combination, our public stockholders
may only receive $10.10 per share from our redemption of our shares and our warrants will expire worthless.
We anticipate that the
investigation of each specific target business and the negotiation, drafting, and execution of relevant agreements, disclosure documents,
and other instruments will require substantial management time and attention and substantial costs for accountants, attorneys and others.
If we decide not to complete a specific initial business combination, the costs incurred up to that point for the proposed transaction
likely would not be recoverable. Furthermore, if we reach an agreement relating to a specific target business, we may fail to consummate
our initial business combination for any number of reasons including those beyond our control. Any such event will result in a loss to
us of the related costs incurred, which could materially adversely affect subsequent attempts to locate and acquire or merge with another
business due to a reduction in the funds available for expenses for relating to such efforts. If we are unable to complete our initial
business combination, our public stockholders may only receive $10.10 per share from our redemption of their shares and our warrants
will expire worthless.
Our key personnel may negotiate employment or consulting agreements
with a target business in connection with our initial business combination. These agreements may provide for them to receive compensation
following our initial business combination and, as a result, may cause them to have conflicts of interest in determining whether a particular
business combination would be advantageous to us.
Our key personnel may decide to remain with the
company after the consummation of our initial business combination only if they are able to negotiate employment or consulting agreements
in connection with the business combination. Such negotiations would take place simultaneously with the negotiation of the business combination
and could provide for such individuals to receive compensation in the form of cash payments and/or our securities for services they would
render to us after the consummation of our initial business combination. The personal and financial interests of such individuals may
influence their motivation in identifying and selecting a target business and cause them to have conflicts of interest in determining
whether a particular business combination would be advantageous to us. However, we believe the ability of such individuals to remain with
us after the consummation of our initial business combination will not be the determining factor in our decision as to whether or not
we will proceed with any potential business combination. There is no certainty, however, that any of our key personnel will remain with
us after the consummation of our initial business combination. We cannot assure you that any of our key personnel will remain in senior
management or advisory positions with us. The determination as to whether any of our key personnel will remain with us will be made at
the time of our initial business combination.
We may attempt to consummate business combinations with multiple
prospective targets simultaneously, which may hinder our ability to consummate an initial business combination and give rise to increased
costs and risks that could negatively impact our operations and profitability.
If we determine to acquire several businesses
simultaneously that are owned by different sellers, we will need each seller to agree that our purchase of its business is contingent
on the simultaneous closings of the other business combinations, which may make it more difficult for us, and delay our ability, to complete
the initial business combination. With multiple business combinations, we could also face additional risks, including additional burdens
and costs with respect to possible multiple negotiations and due diligence investigations (if there are multiple sellers) and the additional
risks associated with the subsequent assimilation of the operations and services or products of the acquired companies in a single operating
business. If we are unable to adequately address these risks, we may be unable to operate the combined business successfully, and you
could lose some or all of your investment in us.
We may attempt to consummate our initial business combination
with a private company about which little information is available, which may result in a business combination with a company that is
not as profitable as we expected, or at all.
In pursuing our acquisition strategy, we may seek
to effectuate our initial business combination with a privately held company. Very little public information exists about private companies,
and we could be required to make our decision on whether to pursue a potential initial business combination on the basis of the information
developed during our due diligence examination, which may be limited. As a result, we could acquire a company that is not as profitable
as we expected, or at all. Furthermore, the relative lack of information about a private company may hinder our ability to properly assess
the value of such a company which could result in our overpaying for that company.
If we effect our initial business combination with a company
located outside of the United States, we would be subject to a variety of additional risks that may adversely affect us.
If we pursue a target company with operations
or opportunities outside of the United States for our initial business combination, we may face additional burdens in connection
with investigating, agreeing to and completing such initial business combination, and if we effect such initial business combination,
we would be subject to a variety of additional risks that may negatively impact our operations.
If we pursue a target a company with operations
or opportunities outside of the United States for our initial business combination, we would be subject to risks associated with
cross-border business combinations, including in connection with investigating, agreeing to and completing our initial business combination,
conducting due diligence in a foreign jurisdiction, having such transaction approved by any local governments, regulators or agencies
and changes in the purchase price based on fluctuations in foreign exchange rates.
If we effect our initial business combination
with such a company, we would be subject to any special considerations or risks associated with companies operating in an international
setting, including any of the following:
• costs
and difficulties inherent in managing cross-border business operations;
• rules and
regulations regarding currency redemption;
• complex
corporate withholding taxes on individuals;
• laws
governing the manner in which future business combinations may be effected;
• exchange
listing and/or delisting requirements;
• tariffs
and trade barriers;
• regulations
related to customs and import/export matters;
• local
or regional economic policies and market conditions;
• unexpected
changes in regulatory requirements;
• challenges
in managing and staffing international operations;
• longer
payment cycles;
• tax
issues, such as tax law changes and variations in tax laws as compared to the United States;
• currency
fluctuations and exchange controls;
• rates
of inflation;
• challenges
in collecting accounts receivable;
• cultural
and language differences;
• employment
regulations;
• underdeveloped
or unpredictable legal or regulatory systems;
• corruption;
• protection
of intellectual property;
• social
unrest, crime, strikes, riots and civil disturbances;
• regime
changes and political upheaval;
• terrorist
attacks and wars; and
• deterioration
of political relations with the United States.
We may not be able to adequately address these
additional risks. If we were unable to do so, we may be unable to complete such initial business combination, or, if we complete such
initial business combination, our operations might suffer, either of which may adversely impact our business, financial condition and
results of operations.
We may not maintain control of a target business after our initial
business combination. We cannot provide assurance that, upon loss of control of a target business, new management will possess the skills,
qualifications or abilities necessary to profitably operate such business.
We anticipate structuring our initial business
combination to acquire 100% of the equity interest or assets of the target business or businesses. However, we may structure our initial
business combination to acquire less than 100% of the equity interest or assets of the target business, but only if we (or any entity
that is a successor to us in a business combination) acquire a majority of the outstanding voting securities or assets of the target.
Even if we own a majority interest in the target, our stockholders prior to the initial business combination may collectively own a minority
interest in the post business combination company, depending on valuations ascribed to the target and us in the business combination transaction.
For example, we could pursue a transaction in which we issue a substantial number of new shares of Class A common stock in exchange
for all of the outstanding capital stock of a target. In this case, we would acquire a 100% interest in the target. However, as a result
of the issuance of a substantial number of new shares of common stock, our stockholders immediately prior to such transaction could own
less than a majority of our outstanding shares of common stock subsequent to such transaction. In addition, other minority stockholders
may subsequently combine their holdings resulting in a single person or group obtaining a larger share of the company’s stock than
we initially acquired. Accordingly, this may make it more likely that we will not be able to maintain our control of the target business.
We may issue notes or other debt securities, or otherwise incur
substantial debt, to complete a business combination, which may adversely affect our financial condition and the value of our stockholders’
investment in us.
Although we have no commitments as of the date
of this prospectus to issue any notes or other debt securities, or otherwise to incur debt, we may choose to incur substantial debt in
order to complete our initial business combination. The incurrence of debt could have a variety of negative effects, including:
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default and foreclosure on our assets if our operating revenues
after an initial business combination are insufficient to meet our debt service obligations;
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acceleration of our obligations to repay the indebtedness, even
if we make all principal and interest payments when due, if we breach covenants that require the maintenance of financial ratios or reserves
without a waiver or renegotiation of that covenant;
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our immediate payment of all principal and accrued interest,
if any, if the debt is payable on demand and the lender demands payment;
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our inability to obtain necessary additional financing if any
debt we incur contains covenants restricting our ability to obtain additional financing while the debt is outstanding;
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prohibitions of, or limitations on, our ability to pay dividends
on our common stock;
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use of a substantial portion of our cash flow to pay principal
and interest on our debt, which will reduce the funds available for dividends on our common stock if declared, as well as for expenses,
capital expenditures, acquisitions and other general corporate purposes;
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limitations on our flexibility in planning for and reacting
to changes in our business and in the industry in which we operate;
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increased vulnerability to adverse changes in general economic,
industry and competitive conditions and adverse changes in government regulation; and
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limitations on our ability to borrow additional amounts for
expenses, capital expenditures, acquisitions, debt service requirements, execution of growth strategies and other purposes and other
disadvantages compared to our competitors who have less debt.
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We do not have a policy with respect to how much
debt we may incur. To the extent that the amount of our debt increases, the impact of the effects listed above may also increase.
We may complete a business combination with only one business,
which would result in our success being dependent solely on a single business which may have a limited number of products or services.
This lack of diversification may harm our operations and profitability.
We are not limited as to the number of businesses
we may acquire in our initial business combination. However, we may effectuate a business combination with only one target business because
of various factors, including the limited amount of the net proceeds of this offering, the existence of complex accounting issues and
the requirement that we prepare and file pro forma financial statements with the SEC that present operating results and the financial
condition of several target businesses as if they had been operated on a combined basis. By consummating an initial business combination
with only a single entity, our lack of diversification may subject us to numerous economic, competitive and regulatory risks particular
to the industry area in which the acquired business operates. Further, we would not be able to diversify our operations or benefit from
the possible spreading of risks or offsetting of losses, unlike other entities which may have the resources to complete several business
combinations in different industries or different areas of a single industry. Accordingly, the prospects for our success may:
• solely
depend upon the performance of a single business, property or asset, or
• depend
upon the development or market acceptance of a single or limited number of products, processes or services.
This lack of diversification may subject us to
numerous economic, competitive and regulatory risks, any or all of which may have a substantial adverse impact upon the particular industry
in which we may operate subsequent to our initial business combination.
The officers and directors of an acquisition candidate may resign
upon consummation of a business combination. The loss of an acquisition target’s key personnel could negatively impact the operations
and profitability of our post-combination business.
The role of an acquisition candidate’s key
personnel upon the consummation of our initial business combination cannot be ascertained at this time. Although we contemplate that certain
members of an acquisition candidate’s management team will remain associated with us following our initial business combination,
it is possible that members of the management of an acquisition candidate will not wish to remain in place. The loss of an acquisition
target’s key personnel could negatively impact the operations and profitability of our post-combination business.
We may partner, submit a joint bid or enter into a similar transaction
with holders of founder shares or an affiliate in connection with our pursuit of, or in connection with, a business combination.
We are not prohibited from partnering, submitting
a joint bid or entering into any similar transaction with holders of founder shares or their affiliates in our pursuit of a business combination.
Although we currently have no plans to do so, we could pursue such a transaction if we determined that such affiliated entity met our
criteria for a business combination as set forth in “Proposed Business — Effecting our initial business combination —
Selection of a target business and structuring of our initial business combination” and the transaction was approved by a majority
of our disinterested directors. Despite our agreement to obtain an opinion from an independent investment banking firm or an independent
accounting firm regarding the fairness to our stockholders from a financial point of view of a business combination with any holder of
founder shares or its affiliates, the terms of the business combination may not be as advantageous to our public stockholders as they
would be absent any conflicts of interest. Additionally, were we successful in consummating such a transaction, conflicts could invariably
arise from the interest of the holder of founder shares or its affiliate in maximizing its returns, which may be at odds with the strategy
of the post-business combination company or not in the best interests of the public stockholders of the post-business combination company.
Any or all of such conflicts could materially reduce the value of your investment, whether before or after our initial business combination.
A failure to comply with privacy regulations could adversely
affect relations with customers and have a negative impact on business.
Depending upon the type of business we acquire,
in the course of providing services to our customers we may collect, process and retain sensitive and confidential information on our
customers and their clients. A failure of our systems due to security breaches, acts of vandalism, computer viruses, misplaced or lost
data, programming and/or human errors, or other causes could result in the misappropriation, loss or other unauthorized disclosure of
confidential customer information. Any such failure could result in damage to our reputation with our customers, expose us to the risk
of litigation and liability, disrupt our operations, and impair our ability to operate profitably.
We may not be able to protect our intellectual property and we
may be subject to infringement claims.
We expect to rely on a combination of contractual
rights and copyright, trademark, patent and trade secret laws to establish and protect any proprietary technology of a target business.
Although we intend to protect vigorously any intellectual property we acquire, third parties may infringe or misappropriate our intellectual
property or may develop competitive technology. Our competitors may independently develop similar technology, duplicate our products or
services or design around our intellectual property rights. We may have to litigate to enforce and protect our intellectual property rights,
trade secrets and know-how or to determine their scope, validity or enforceability, which is expensive, could cause a diversion of resources
and may not prove successful. The loss of intellectual property protection or the inability to secure or enforce intellectual property
protection could harm our business and ability to compete.
We also may be subject to claims by third parties
for infringement of another party’s proprietary rights, or for breach of copyright, trademark or license usage rights. Any such
claims and any resulting litigation could subject us to significant liability for damages. An adverse determination in any litigation
of this type could require us to design around a third party’s intellectual property, obtain a license for that technology or license
alternative technology from another party. None of these alternatives may be available to us at a price which would allow us to operate
profitably. In addition, litigation is time consuming and expensive to defend and could result in the diversion of the time and attention
of management and employees. Any claims from third parties may also result in limitations on our ability to use the intellectual property
subject to these claims.
Our initial business combination and our structure thereafter
may not be tax-efficient to our stockholders and warrant holders. As a result of our initial business combination, our tax obligations
may be more complex, burdensome and uncertain.
Although we will attempt to structure our initial
business combination in a tax-efficient manner, tax structuring considerations are complex, the relevant facts and law are uncertain and
may change, and we may prioritize commercial and other considerations over tax considerations. For example, in connection with our initial
business combination and subject to requisite stockholder approval, we may structure our business combination in a manner that requires
stockholders and/or warrant holders to recognize gain or income for tax purposes. We do not intend to make any cash distributions to stockholders
or warrant holders to pay taxes in connection with our business combination or thereafter. Accordingly, a stockholder or a warrant holder
may need to satisfy any liability resulting from our initial business combination with cash from its own funds or by selling all or a
portion of such holder’s shares or warrants. In addition, we may effect a business combination with a target company in another
jurisdiction or reincorporate in a different jurisdiction (including, but not limited to, the jurisdiction in which the target company
or business is located). As a result, stockholders and warrant holders may be subject to additional income, withholding or other taxes
with respect to their ownership of us after our initial business combination.
Furthermore, we may effect a business combination
with a target company that has business operations outside of the United States, and, possibly, business operations in multiple jurisdictions.
If we effect such a business combination, we could be subject to significant income, withholding and other tax obligations in a number
of jurisdictions with respect to income, operations and subsidiaries related to those jurisdictions. Due to the complexity of tax obligations
and filings in other jurisdictions, we may have a heightened risk related to audits or examinations by taxing authorities. This additional
complexity and risk could have an adverse effect on our after-tax profitability and financial condition.
Risks Relating to our Sponsor and Management
Team
We are dependent upon our officers and directors; the loss of
any one or more of them could adversely affect our ability to complete a business combination.
Our operations depend upon the background, experience
and contacts of our officers and directors. We believe that our success depends on the continued service of our officers and directors,
at least until we have consummated a business combination. We do not have an employment agreement with, or key-man insurance on the life
of, any of our directors or officers. In addition, our executive officers and directors are not required to, and will not, commit their
full time to our affairs, which may result in a conflict of interest in allocating their time between our operations and the search for
a business combination and their other business commitments. We do not intend to have any full-time employees prior to the consummation
of our business combination. Each of our executive officers and directors is engaged in other business endeavors and is not obligated
to contribute any specific number of hours per week to our affairs. If our executive officers’ and directors’ other business
commitments require them to devote substantial amounts of time in excess of their current commitment levels, it could limit their ability
to devote time to our affairs which make it more difficult for us to identify an acquisition target and consummate our business combination.
For a complete discussion of our officers’ and directors’ other business affairs, please see “Management —
Directors and Officers.”
Our success following our initial business combination likely
will depend upon the efforts of management of the target business. The loss of any of the key personnel of the target’s management
team could make it more difficult to operate the target profitably.
Although some of our key personnel may remain
with the target business in senior management or advisory positions following a business combination, we can offer no assurance that any
will do so. Moreover, as a result of the existing commitments of our key personnel, it is likely that we will retain some or all of the
management of the target business to conduct its operations. The departure of any key members of the target’s management team could
thus make it more difficult to operate the post-combination business profitably. Moreover, to the extent that we will rely upon the target’s
management team to operate the post-combination business, we will be subject to risks regarding their managerial competence. While we
intend to closely scrutinize the skills, abilities and qualifications of any individuals we retain after a business combination, our ability
to do so may be limited due to a lack of time resources or information. Accordingly, we cannot assure you that our assessment of these
individuals will prove to be correct and that they will have the skills, abilities and qualifications we expect.
Each of our officers and directors
presently has, and any of them in the future may have, additional fiduciary or contractual obligations to other entities and, accordingly,
may have conflicts of interest in determining to which entity a particular business opportunity should be presented.
Following the completion of this offering
and until we consummate our initial business combination, we intend to engage in the business of identifying and combining with one or
more businesses. Our directors and officers may now be, or in the future become, affiliated with entities that are engaged in a similar
business. For example, Betsy Cohen serves as Chairman of Fintech Acquisition Corp. IV, a Delaware corporation, Fintech Acquisition Corp.
V, a Delaware corporation, Fintech Acquisition Corp. VI, a Delaware corporation, FTAC Athena Acquisition Corp., a Cayman Islands exempted
company, FTAC Olympus Acquisition Corp., a Cayman Islands exempted company, and FTAC Hera Acquisition Corp., a Cayman Islands exempted
company, and as a director of INSU Acquisition Corp., INSU Acquisition Corp. II, and C&W Acquisition Corp., and has agreed to
serve as a director of INSU Acquisition Corp. III, a Delaware corporation. The foregoing are blank check companies incorporated for the
purpose of effecting their own respective initial business combinations. Ms. Cohen owes fiduciary duties to each of the foregoing
blank check companies.
Tensie Whelan serves as a director
of InvestIndustrial Acquisition Corp. InvestIndustrial Acquisition Corp. is a blank check company incorporated under the laws of Delaware
for the purpose of effecting its own respective initial business combinations. Ms. Whelan owes fiduciary duties under the DGCL to
InvestIndustrial Acquisition Corp.
In addition, our directors and officers
may become aware of business opportunities which may be appropriate for presentation to us and the other entities to which they owe certain
fiduciary or contractual duties. Accordingly, they may have conflicts of interest in determining to which entity a particular business
opportunity should be presented. These conflicts may not be resolved in our favor and a potential target business may be presented to
other entities prior to its presentation to us, subject to our directors’ and officers’ fiduciary duties under the DGCL. Our
amended and restated certificate of incorporation will provide that we renounce our interest in any corporate opportunity offered to any
director or officer unless such opportunity is expressly offered to such person solely in his or her capacity as a director or officer
of the company and such opportunity is one we are legally and contractually permitted to undertake and would otherwise be reasonable for
us to pursue, and to the extent the director or officer is permitted to refer that opportunity to us without violating another legal obligation.
Our sponsor and directors and officers
are also not prohibited from sponsoring, investing or otherwise becoming involved with, any other blank check companies similar to ours,
including in connection with their initial business combinations, or may pursue other business or investment ventures during the period
in which we are seeking an initial business combination. Any such companies, businesses or ventures may present additional conflicts of
interest in pursuing an initial business combination. However, we do not believe that any such potential conflicts would materially affect
our ability to complete our initial business combination.
For further discussion of our executive
officers’ and directors’ business affiliations and the potential conflicts of interest that you should be aware of, please
see “Management — Conflicts of Interest” and “Certain Relationships and Related Party Transactions.”
Members of our management team and board
of directors have significant experience as founders, board members, officers or executives of other companies. As a result, certain of
those persons have been, or may become, involved in proceedings, investigations and litigation relating to the business affairs of the
companies with which they were, are, or may be in the future be, affiliated. These activities may have an adverse effect on us, which
may impeded our ability to consummate an initial business combination.
During the course of their careers, members of
our management team and board of directors have had significant experience as founders, board members, officers or executives of other
companies. As a result of their involvement and positions in these companies, certain of those persons , are now, or may in the future
become, involved in litigation, investigations or other proceedings relating to the business affairs of such companies or transactions
entered into by such companies. Any such litigation, investigations or other proceedings may divert the attention and resources of the
members of both our management team and our board of directors away from identifying and selecting a target business or businesses for
our initial business combination and may negatively affect our reputation, which may impede our ability to complete an initial business
combination.
We may engage in a business combination
with one or more target businesses that have relationships with entities that may be affiliated with our executive officers, directors
or existing stockholders, which may raise potential conflicts of interest.
We may decide to acquire
one or more businesses affiliated with holders of founder shares, or our officers and directors. Our sponsor, officers and directors may
sponsor, form or participate in other blank check companies similar to ours or other entities during the period in which we are seeking
an initial business combination. Such entities may compete with us for business combination opportunities. The holders of founder shares
and our officers and directors are not currently aware of any specific opportunities for us to consummate a business combination with
any entities with which they are affiliated, and there have been no preliminary discussions concerning a business combination with any
such entity or entities. Although we will not be specifically focusing on, or targeting, any transaction with any affiliated entities,
we would pursue such a transaction if we determined that the targeted affiliated entity met our criteria for a business combination as
set forth in “Proposed Business — Effecting our initial business combination — Selection of a target business
and structuring of our initial business combination” and the transaction was approved by a majority of our disinterested directors.
Despite our agreement to obtain an opinion from an independent investment banking firm or an independent accounting firm regarding the
fairness to our stockholders from a financial point of view of a business combination with one or more businesses affiliated with our
executive officers, directors or holders of founder shares, potential conflicts of interest still may exist and, as a result, the terms
of the business combination may not be as advantageous to our public stockholders as they would be absent any conflicts of interest.
Since holders of our founder shares and
placement units will lose some or all of their investment in us if we do not consummate a business combination, a conflict of interest
may arise in determining whether a particular acquisition target is appropriate for our initial business combination.
Our
initial holders currently own 8,763,333 founder shares, which will be worthless if we do not consummate our initial business combination.
Our sponsor has committed to purchase an aggregate of 890,000 placement units (or 990,000 if the underwriter’s overallotment option
is exercised in full) for an aggregate purchase price of $8,900,000 (or $9,900,000 if the underwriter’s overallotment option is
exercised in full). There will be no redemption rights or liquidating distributions from the trust account with respect to the founder
shares, placement shares or placement warrants, which will expire worthless if we do not consummate a business combination within the
allotted 18-month period, which is extendable at our sponsor’s option to up to 21 months as described herein. If we do not
consummate a business combination, our sponsor will realize a loss on the placement units it purchased. As a result, the personal and
financial interests of certain of our officers and directors, directly or as members of our sponsor, in consummating an initial business
combination, along with their flexibility in identifying and selecting a prospective acquisition candidate, may influence their motivation
in identifying and selecting a target business combination and completing an initial business combination that is not in the best interests
of our stockholders. Consequently, the discretion of our officers and directors, in identifying and selecting a suitable target business
combination may result in a conflict of interest when determining whether the terms, conditions and timing of a particular initial business
combination are appropriate and in the best interest of our public stockholders.
Since our officers and directors will be
eligible to share in a portion of any appreciation in founder shares purchased at approximately $0.003 per share, a conflict of interest
may arise in determining whether a particular business combination target is appropriate for our initial business combination.
The members of our management team have invested
in our sponsor by subscribing units issued by the sponsor. These officers and directors will not receive any cash compensation from us
prior to a business combination but through their investment in the sponsor will be eligible to share in a portion of any appreciation
in founder shares and private placement units, provided that we successfully complete a business combination. We believe that this structure
aligns the incentives of these officers and directors with the interests of our stockholders. However, investors should be aware that,
as these officers and directors have paid approximately $0.003 per share for the interest in the founder shares, this structure also creates
an incentive whereby our officers and directors could potentially make a substantial profit even if we complete a business combination
with a target that ultimately declines in value and is not profitable for public investors.
Risks Relating to our Securities
The securities in which we invest the
proceeds held in the trust account could bear a negative rate of interest, which could reduce the interest income available for payment
of taxes or reduce the value of the assets held in trust such that the per-share redemption amount received by stockholders
may be less than $10.10 per share.
The net proceeds of this
offering and certain proceeds from the sale of the placement units, in the amount of $222,200,000.00, will be held in an interest-bearing
trust account. The proceeds held in the trust account may only be invested only in U.S. government treasury bills with a maturity of
185 days or less or in money market funds meeting certain conditions under Rule 2a-7 under the Investment Company Act which
invest only in direct U.S. government treasury obligations. While short-term U.S. treasury obligations currently yield a positive rate
of interest, they have briefly yielded negative interest rates in recent years. Central banks in Europe and Japan pursued interest rates
below zero in recent years, and the Open Market Committee of the Federal Reserve has not ruled out the possibility that it may in the
future adopt similar policies in the United States. In the event of very low or negative yields, the amount of interest income (which
we may use to pay our taxes, if any) would be reduced. In the event that we are unable to complete our initial business combination,
our public stockholders are entitled to receive their pro-rata share of the proceeds then held in the trust account, plus any
interest income (less up to $100,000 of interest to pay dissolution expenses). If the balance of the trust account is reduced below $222,200,000.00
as a result of negative interest rates, the amount of funds in the trust account available for distribution to our public stockholders
may be reduced below $10.10 per share.
If
we are deemed to be an investment company under the Investment Company Act, we may be required to institute burdensome
compliance requirements and our activities may be restricted, which may make it difficult for us to complete our initial business combination.
If we are deemed to be an investment company under
the Investment Company Act, our activities may be restricted, including:
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restrictions on the nature of our investments; and
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restrictions on the issuance of securities;
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each of which may make it difficult for us to complete our initial
business combination.
In addition, we may have imposed upon us burdensome
requirements, including:
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registration as an investment company with the SEC;
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adoption of a specific form of corporate structure; and
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reporting, record keeping, voting, proxy and disclosure requirements
and compliance with other rules and regulations that we are currently not subject to.
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In order not to be regulated as an investment
company under the Investment Company Act, unless we can qualify for an exclusion, we must ensure that we are engaged primarily in a business
other than investing, reinvesting or trading of securities and that our activities do not include investing, reinvesting, owning, holding
or trading “investment securities” constituting more than 40% of our total assets (exclusive of U.S. government securities
and cash items) on an unconsolidated basis. Our business will be to identify and complete an initial business combination and thereafter
to operate the post-transaction business or assets for the long term. We do not plan to buy businesses or assets with a view to resale
or profit from their resale. We do not plan to buy unrelated businesses or assets or to be a passive investor.
We do not believe that
our anticipated principal activities will subject us to the Investment Company Act. To this end, the proceeds held in the trust account
may only be invested in United States “government securities” within the meaning of Section 2(a)(16) of the Investment
Company Act having a maturity of 185 days or less or in money market funds meeting certain conditions under Rule 2a-7 promulgated
under the Investment Company Act which invest only in direct U.S. government treasury obligations. Pursuant to the trust agreement, the
trustee is not permitted to invest in other securities or assets. By restricting the investment of the proceeds to these instruments,
and by having a business plan targeted at acquiring and growing businesses for the long term (rather than on buying and selling businesses
in the manner of a merchant bank or private equity fund), we intend to avoid being deemed an “investment company” within
the meaning of the Investment Company Act. This offering is not intended for persons who are seeking a return on investments in government
securities or investment securities. The trust account is intended as a holding place for funds pending the earliest to occur of: (i) the
completion of our primary business objective, which is a business combination; (ii) the redemption of any public shares properly
submitted in connection with a stockholder vote to amend our amended and restated certificate of incorporation to modify the substance
or timing of our obligation to provide for the redemption of our public shares in connection with an initial business combination or
to redeem 100% of our public shares if we do not complete our initial business combination within the completion window; and (iii) absent
a business combination, our return of the funds held in the trust account to our public stockholders as part of our redemption of the
public shares. If we do not invest the proceeds as discussed above, we may be deemed to be subject to the Investment Company Act. If
we were deemed to be subject to the Investment Company Act, compliance with these additional regulatory burdens would require additional
expenses for which we have not allotted funds and may hinder our ability to consummate our initial business combination. If we are unable
to complete our initial business combination, our public stockholders may receive only approximately $10.10 per share on the liquidation
of our trust account and our warrants will expire worthless. In certain circumstances, our public stockholders may receive less than
$10.10 per share on the redemption of their shares. Please see “— If third parties bring claims against us, the proceeds
held in the trust account could be reduced and the per-share redemption amount received by stockholders may be less than $10.10 per share”
and other risk factors herein.
Our warrant agreement will designate the
courts of the State of New York or the United States District Court for the Southern District of New York as the sole and exclusive forum
for certain types of actions and proceedings that may be initiated by holders of our warrants, which could limit the ability of warrant
holders to obtain a favorable judicial forum for disputes with our company.
Our warrant agreement will provide that, subject
to applicable law, (i) any action, proceeding or claim against us arising out of or relating in any way to the warrant agreement,
including under the Securities Act, will be brought and enforced in the courts of the State of New York or the United States District
Court for the Southern District of New York, and (ii) that we irrevocably submit to such jurisdiction, which jurisdiction shall be
the exclusive forum for any such action, proceeding or claim. We will waive any objection to such exclusive jurisdiction and that such
courts represent an inconvenient forum.
Notwithstanding the foregoing,
these provisions of the warrant agreement will not apply to suits brought to enforce any liability or duty created by the Exchange
Act or any other claim for which the federal district courts of the United States of America are the sole and exclusive forum. Any
person or entity purchasing or otherwise acquiring any interest in any of our warrants shall be deemed to have notice of and to have consented
to the forum provisions in our warrant agreement. If any action, the subject matter of which is within the scope the forum provisions
of the warrant agreement, is filed in a court other than a court of the State of New York or the United States District Court for the
Southern District of New York, or a foreign action, in the name of any holder of our warrants, such holder shall be deemed to have consented
to: (x) the personal jurisdiction of the state and federal courts located in the State of New York in connection with any action
brought in any such court to enforce the forum provisions, or an enforcement action, and (y) having service of proves made upon such
warrant holder in any such enforcement action by service upon such warrantholder’s counsel in the foreign action as agent for such
warrantholder.
The
choice-of-forum provision in our warrant agreement may (1) result in increased costs for investors to bring a claim or (2) limit
a warrantholder’s ability to bring a claim in a judicial forum that it finds favorable for disputes with our company, which may
discourage such lawsuits. Alternatively, if a court were to find this provision of our warrant agreement inapplicable or unenforceable
with respect to one or more of the specified types of actions or proceedings, we may incur additional costs associated with resolving
such matters in other jurisdictions, which could materially and adversely affect our business, financial condition and results of operations
and result in a diversion of the time and resources of our management and board of directors. We note that there is uncertainty as to
whether a court would enforce this provision and that investors cannot waive compliance with the federal securities laws and the rules and
regulations thereunder. Section 22 of the Securities Act creates concurrent jurisdiction for state and federal courts over all suits
brought to enforce any duty or liability created by the Securities Act or the rules and regulations thereunder. Section 27
of the Exchange Act creates exclusive federal jurisdiction over all suits brought to enforce any duty or liability created by the Exchange
Act or the rules and regulations thereunder.
If we seek stockholder approval of our initial business combination
and we do not conduct redemptions pursuant to the tender offer rules, a stockholder, or a “group” of stockholders, who are
deemed to hold an aggregate of more than 15.0% of our common stock may not redeem any shares they hold that exceed such 15.0% amount.
If we seek stockholder approval of our initial
business combination and we do not conduct redemptions in connection with our business combination pursuant to the tender offer rules,
our amended and restated certificate of incorporation provides that a public stockholder, together with any affiliate of such stockholder
or any other person with whom such stockholder is acting in concert or as a “group” (as defined under Section 13 of the
Exchange Act), will be restricted from seeking redemption rights with respect to shares in excess of 15.0% of the shares sold in this
offering without our prior written consent. We refer to such shares in excess of 15.0% or more of the shares sold in the offering as “Excess
Shares”. However, we would not be restricting our stockholders’ ability to vote all of their shares (including Excess Shares)
for or against our initial business combination. Your inability to redeem any Excess Shares will reduce your influence over our ability
to consummate a business combination and you could suffer a material loss on your investment in us if you sell Excess Shares in open market
transactions. Additionally, you will not receive redemption distributions with respect to the Excess Shares if we consummate our business
combination. As a result, you would continue to hold that number of shares exceeding 15.0% and, in order to dispose of such shares, would
be required to sell them in open market transactions, potentially at a loss.
The determination of the offering price of our units and the
size of this offering is more arbitrary than the pricing of securities and size of an offering of an operating company in a particular
industry. You may have less assurance, therefore, that the offering price of our units properly reflects the value of such units than
you would have in a typical offering of an operating company.
Prior to this offering there has been no public
market for any of our securities. The public offering price of the units and the terms of the warrants were negotiated between us and
the underwriter. In determining the size of this offering, management held customary organizational meetings with representatives of the
underwriter with respect to the state of capital markets, generally, and the amount the underwriter believed it reasonably could raise
on our behalf. Factors considered in determining the size of this offering, prices and terms of the units, including the Class A
common stock and warrants underlying the units, include:
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the history and prospects of companies whose principal business
is the acquisition of other companies;
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prior offerings of those companies;
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our prospects for acquiring an operating business at attractive
values;
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a review of debt to equity ratios in leveraged transactions;
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an assessment of our management and their experience in identifying
operating companies;
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general conditions of the securities markets at the time
of this offering; and
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other factors as were deemed relevant.
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Although these factors were considered, the determination
of our offering price is more arbitrary than the pricing of securities of an operating company in a particular industry since we have
no historical operations or financial results.
There is currently no market for our securities and a market
for our securities may not develop, which would adversely affect the liquidity and price of our securities.
Although we anticipate applying to list our units
on the NASDAQ Global Market, as of the date of this prospectus there is no market for our securities. Prospective stockholders therefore
have no access to information about prior trading history on which to base their investment decision. Following this offering, the price
of our securities may vary significantly due to one or more potential business combinations, general market and economic conditions and
forecasts, our general business condition and the release of our financial reports. Once listed on Nasdaq, an active trading market for
our securities may never develop or, if developed, may not be sustained. You may be unable to sell your securities unless a market for
such securities can be established or sustained.
Nasdaq may delist our securities from trading which could limit
investors’ ability to make transactions in our securities and subject us to additional trading restrictions.
We have applied
to have our units listed on Nasdaq. We expect that our units will be listed on Nasdaq on or promptly after the date of this prospectus.
Following the date the shares of our Class A common stock and warrants are eligible to trade separately, we anticipate that the shares
of our Class A common stock and warrants will be separately listed on Nasdaq. We cannot guarantee that our securities will be approved
for listing on Nasdaq. Although after giving effect to this offering we expect to meet, on a pro forma basis, the minimum initial listing
standards set forth in the Nasdaq listing standards, we cannot assure you that our securities will be, or will continue to be, listed
on Nasdaq in the future or prior to our initial business combination. In order to continue listing our securities on Nasdaq prior to our
initial business combination, we must maintain certain financial, distribution and stock price levels. Generally, we must maintain an
average global market capitalization and a minimum number of holders of our securities (generally 400 public holders). Additionally, in
connection with our initial business combination, we will be required to demonstrate compliance with Nasdaq’s initial listing requirements,
which are more rigorous than Nasdaq’s continued listing requirements, in order to continue to maintain the listing of our securities
on Nasdaq. For instance, our stock price would generally be required to be at least $4.00 per share, and we would be required to have
a minimum of 400 round lot holders of our securities. We cannot assure you that we will be able to meet those initial listing requirements
at that time.
If Nasdaq
delists our securities from trading on its exchange and we are not able to list our securities on another national securities exchange,
we expect our securities could be quoted on an over-the-counter market. If this were to occur, we could face significant material adverse
consequences, including:
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a limited availability of market quotations for our securities;
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reduced liquidity for our securities;
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a determination that our Class A common stock is a “penny stock” which will require brokers
trading in our Class A common stock to adhere to more stringent rules and possibly result in a reduced level of trading activity
in the secondary trading market for our securities;
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a limited amount of news and analyst coverage; and
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a decreased ability to issue additional securities or obtain additional financing in the future.
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The
National Securities Markets Improvement Act of 1996, which is a federal statute, prevents or preempts the states from regulating the sale
of certain securities, which are referred to as “covered securities.” Because we expect that our units and eventually our
Class A common stock and warrants will be listed on Nasdaq, our units, Class A common stock and warrants will be covered securities.
Although the states are preempted from regulating the sale of our securities, the federal statute does allow the states to investigate
companies if there is a suspicion of fraud, and, if there is a finding of fraudulent activity, then the states can regulate or bar the
sale of covered securities in a particular case. While we are not aware of a state having used these powers to prohibit or restrict the
sale of securities issued by blank check companies, other than the State of Idaho, certain state securities regulators view blank check
companies unfavorably and might use these powers, or threaten to use these powers, to hinder the sale of securities of blank check companies
in their states. Further, if we were no longer listed on Nasdaq, our securities would not be covered securities and we would be subject
to regulation in each state in which we offer our securities, including in connection with our initial business combination.
Purchases of Class A common stock in the open market or
in privately negotiated transactions by our sponsor, directors, officers or their affiliates may make it difficult for us to continue
to list our common stock on Nasdaq or another national securities exchange.
If our sponsor, directors, officers or their affiliates
purchase shares of our Class A common stock in the open market or in privately negotiated transactions, it would reduce the public
“float” of our Class A common stock and the number of beneficial holders of our common stock, which may make it difficult
to maintain the listing or trading of our common stock on a national securities exchange if we determine to apply for such listing in
connection with the business combination. If the number of our public holders falls below 300 or if the total number of shares held by
non-affiliates is less than 500,000, we will be non-compliant with Nasdaq’s continued listing rules and our common stock could
be de-listed. If our common stock were de-listed, we could face the material consequences set forth in the immediately preceding risk
factor.
Our
initial holders paid an aggregate of $25,000, or approximately $0.003 per founder share and, accordingly, you will
experience immediate and substantial dilution from the purchase of our units including shares of our Class A common stock.
The difference between the
public offering price per share (allocating all of the unit purchase price to the Class A common stock and none to the warrant included
in the unit) and the pro forma net tangible book value per share of our Class A common stock after this offering constitutes the
dilution to you and the other investors in this offering. The initial holders acquired the founder shares at a nominal price, significantly
contributing to this dilution. Upon completion of this offering, and assuming no value is ascribed to the warrants included in the units,
you and the other public stockholders will incur an immediate and substantial dilution of approximately 106.90%, or $10.69 per share (the
difference between the pro forma net tangible deficit per share of $(0.69) and the initial offering price of $10.00 per unit). This dilution
would increase to the extent that the anti-dilution provisions of the shares of Class B common stock result in the issuance of the
shares of Class A common stock on a greater than one-to-one basis upon conversion of the shares of Class B common stock at the
time of our initial business combination and would become exacerbated to the extent that public stockholders seek redemptions from the
trust. In addition, because of the anti-dilution protection in the founder shares, any equity or equity-linked securities issued in connection
with our initial business combination would be disproportionately dilutive to our Class A common stock.
We may issue additional shares of Class A common stock or
preferred stock to complete our initial business combination or under an employee incentive plan after completion of our initial business
combination. We may also issue shares of Class A common stock upon the conversion of the Class B common stock at a ratio greater
than one-to-one at the time of our initial business combination as a result of the anti-dilution provisions described herein. Any such
issuances would dilute the interest of our stockholders and likely present other risks.
Our amended and restated
certificate of incorporation will authorize the issuance of up to 42,000,000 shares of Class A common stock, par value $0.0001 per
share, and 10,000,000 shares of Class B common stock, par value $0.0001 per share and 1,000,000 shares of undesignated preferred
stock, par value $0.0001 per share. Immediately after this offering, there will be 19,010,000 and 2,336,667 (assuming in each case, that
the underwriter has not exercised its overallotment option) authorized but unissued shares of Class A and Class B common stock,
respectively, available for issuance, which amount does not take into account the shares of Class A common stock reserved for issuance
upon exercise of outstanding warrants or the shares of Class A common stock issuable upon the conversion of the Class B common
stock. Shares of Class B common stock are automatically convertible into shares of our Class A common stock at the time of
our initial business combination, initially at a one-for-one ratio but subject to adjustment as set forth herein. Immediately after this
offering, there will be no shares of preferred stock issued and outstanding.
We may issue a substantial number of additional
shares of common stock, and may issue shares of preferred stock, in order to complete our initial business combination or under an employee
incentive plan after completion of our initial business combination (although our amended and restated certificate of incorporation will
provide that we may not issue additional securities that can vote with common stockholders on matters related to our pre-initial business
combination activity, on any amendment to certain provisions of our amended and restated certificate of incorporation or on our initial
business combination, or that would entitle holders thereof to receive funds from the trust account). We may also issue shares of Class A
common stock upon conversion of the Class B common stock
at a ratio greater than one-to-one at the time of our initial business combination as a result of the anti-dilution provisions described
herein. However, our amended and restated certificate of incorporation will provide, among other things, that prior to our initial business
combination, we may not issue additional shares of capital stock that would entitle the holders thereof to (1) receive funds from
the trust account or (2) vote on any initial business combination.
The issuance of additional shares of common or
preferred stock:
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may significantly dilute the equity interest of investors
in this offering;
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may subordinate the rights of holders of common stock if
preferred stock is issued with rights senior to those afforded our common stock;
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could cause a change in control if a substantial number of
shares of common stock are issued, which may affect, among other things, our ability to use our net operating loss carry forwards, if
any, and could result in the resignation or removal of our present officers and directors; and
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may adversely affect prevailing market prices for our units,
common stock and/or warrants.
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Although this registration statement registers
the offer and sale of the Class A common stock underlying the public warrants under the Securities Act, it does not register the
issuance of the shares underlying the warrants from time to time following the initial business combination. We cannot assure you that
such registration will be in place when an investor desires to exercise warrants, thus precluding such investor from being able to exercise
its warrants except on a cashless basis and potentially causing such warrants to expire worthless.
Although this registration statement registers
the offer of the Class A common stock underlying the public warrants under the Securities Act, it does not register the issuance
of the shares underlying the warrants from time to time following the initial business combination. Under the terms of the warrant agreement,
we have agreed that as soon as practicable, but in no event later than 15 business days after the closing of our initial business combination,
we will use our commercially reasonable efforts to file, and within 60 business days following our initial business combination to have
declared effective, a registration statement covering the offer and sale of such shares and maintain a current prospectus relating to
the Class A common stock issuable upon exercise of the warrants, until the expiration of the warrants in accordance with the provisions
of the warrant agreement. We cannot assure you that we will be able to do so if, for example, any facts or events arise which represent
a fundamental change in the information set forth in the registration statement or prospectus, the financial statements contained or incorporated
by reference therein are not current or correct or the SEC issues a stop order. If the offer and sale of the shares issuable upon exercise
of the warrants is not registered under the Securities Act, we will be required to permit holders to exercise their warrants on a cashless
basis. However, no warrant will be exercisable for cash or on a cashless basis, and we will not be obligated to issue any shares to holders
seeking to exercise their warrants, unless the issuance of the shares upon such exercise is registered or qualified under the securities
laws of the state of the exercising holder, or an exemption is available. Notwithstanding the foregoing, if a registration statement covering
the offer and sale of the Class A common stock issuable upon exercise of the warrants is not effective within a specified period
following the consummation of our initial business combination, warrant holders may, until such time as there is an effective registration
statement and during any period when we shall have failed to maintain an effective registration statement, exercise warrants on a cashless
basis pursuant to the exemption provided by Section 3(a)(9) of the Securities Act, provided that such exemption is available.
If that exemption, or another exemption, is not available, holders will not be able to exercise their warrants on a cashless basis. Notwithstanding
the above, if our Class A common stock are, at the time of any exercise of a warrant, not listed on a national securities exchange
such that they satisfy the definition of a “covered security” under Section 18(b)(1) of the Securities Act, we may,
at our option, require holders of public warrants who exercise their warrants to do so on a “cashless basis” in accordance
with Section 3(a)(9) of the Securities Act and, in the event we so elect, we will not be required to file or maintain in effect
a registration statement, and in the event we do not so elect, we will use our commercially reasonable efforts to register or qualify
the shares under applicable blue sky laws to the extent an exemption is not available. In no event will we be required to net cash settle
any warrant, or issue securities or other compensation in exchange for the warrants in the event that we are unable to register or qualify
the shares underlying the warrants under applicable state securities laws and no exemption is available. If the issuance of the shares
upon exercise of the warrants is not so registered or qualified or exempt from registration or qualification, the holder of such warrant
shall not be entitled to exercise such warrant and such warrant may have no value and expire worthless. In such event, holders who acquired
their warrants as part of a purchase of units will have paid the full unit purchase price solely for the Class A common stock included
in the units. If and when the warrants become redeemable by us, we may not exercise our redemption right if the issuance of shares upon
exercise of the warrants is not exempt from registration or qualification under applicable state blue sky laws or we are unable to effect
such registration or qualification. We will use our commercially reasonable efforts to register or qualify the offer and sale of such
shares under the blue sky laws of the state of residence in those states in which the warrants were offered by us in this offering.
If you exercise your public warrants on
a “cashless basis,” you will receive fewer shares of Class A common stock from such exercise than if you were to exercise
such warrants for cash.
There
are circumstances in which the exercise of the public warrants may be required or permitted to be made on a cashless basis. First, if
a registration statement covering the shares of Class A common stock issuable upon exercise of the warrants is not effective by the
60th business day after the closing of our initial business combination, warrantholders
may, until such time as there is an effective registration statement, exercise warrants on a cashless basis in accordance with Section 3(a)(9) of
the Securities Act or another exemption. Second, if our Class A common stock is at any time of any exercise of a warrant not listed
on a national securities exchange such that it satisfies the definition of a “covered security” under Section 18(b)(1) of
the Securities Act, we may, at our option, require holders of public warrants who exercise their warrants to do so on a cashless basis
in accordance with Section 3(a)(9) of the Securities Act and, in the event we so elect, we will not be required to file or maintain
in effect a registration statement, and in the event we do not so elect, we will use our commercially reasonable efforts to register or
qualify the shares under applicable blue sky laws to the extent an exemption is not available. Third, if we call the public warrants for
redemption, our management will have the option to require all holders that wish to exercise warrants to do so on a cashless basis. In
the event of an exercise on a cashless basis, a holder would pay the warrant exercise price by surrendering the warrants for that number
of shares of Class A common stock equal to the quotient obtained by dividing (x) the product of the number of shares of Class A
common stock underlying the warrants, multiplied by the difference between the exercise price of the warrants and the “fair market
value” (as defined in the next sentence) by (y) the fair market value. The “fair market value” is the average reported
last sale price of the Class A common stock for the 10 trading days ending on the third trading day prior to the date on which the
notice of exercise is received by the warrant agent or on which the notice of redemption is sent to the holders of warrants, as applicable.
As a result, you would receive fewer shares of Class A common stock from such exercise than if you were to exercise such warrants
for cash.
The grant of registration rights to our
initial stockholders and purchasers of placement units may make it more difficult to complete our initial business combination, and the
future exercise of such rights may reduce the market price of our Class A common stock.
Pursuant to an agreement
to be entered into concurrently with the issuance and sale of the securities in this offering, the initial stockholders and their permitted
transferees and purchasers of placement units can demand that we register the founder shares, placement shares, placement warrants and
the shares of Class A common stock issuable upon exercise of the placement warrants. This would include the 7,630,000 founder shares,
890,000 placement shares and 445,000 placement warrants (or 8,763,333 founder shares, 990,000 placement shares and 495,000 placement
warrants if the underwriter’s overallotment option is exercised in full) held by our sponsor. These registration rights will be
exercisable at any time commencing upon the date that such shares are released from transfer restrictions (as discussed under “Principal
Stockholders — Restrictions on Transfers of Founder Shares and Placement Units”). We will also grant registration rights
to our sponsor or one of its affiliates in connection with the issuance of any working capital units. We will bear the cost of registering
these securities. The registration and availability of such a significant number of securities for trading in the public market may reduce
the market price of our Class A common stock. In addition, the existence of the registration rights may make our initial business
combination more costly or difficult to conclude because the stockholders of the target business may increase the equity stake they seek
in the combined entity or ask for more cash consideration to offset the negative impact on the market price of our Class A common
stock that is expected when the securities owned by our initial stockholders or their permitted transferees are registered.
We may amend the terms of the warrants in
a manner that may be adverse to holders with the approval by the holders of at least 65% of the then outstanding public warrants or for
amendments necessary for the warrants to be classified as equity. As a result, the exercise price of your warrants could be increased,
the exercise period could be shortened and the number of common stock purchasable upon exercise of a warrant could be decreased, all without
your approval.
Our warrants will be issued
in registered form under a warrant agreement between Continental Stock Transfer & Trust Company, as warrant agent, and us. The
warrant agreement provides that the terms of the warrants may be amended without the consent of any holder to cure any ambiguity or correct
any defective provision, but requires the approval by the holders of at least 65% of the then outstanding public warrants to make any
change that adversely affects the interests of the registered holders of public warrants. Accordingly, we may amend the terms of the public
warrants (i) in a manner adverse to a holder if holders of at least 65% of the then outstanding public warrants approve of such amendment,
or (ii) to the extent necessary for the warrants in the good faith determination of our board of directors (taking into account then
existing market precedents) to allow for the warrants to be classified as equity in our financial statements without the consent of any
holder. Although our ability to amend the terms of the public warrants with the consent of at least 65% of the then outstanding public
warrants is unlimited, examples of such amendments could be amendments to, among other things, increase the exercise price of the warrants,
convert the warrants into cash or stock, shorten the exercise period or decrease the number of shares of our Class A common stock
purchasable upon exercise of a warrant.
We may redeem your unexpired warrants prior
to their exercise at a time that is disadvantageous to you, thereby making your warrants worthless.
We have the ability to redeem
outstanding warrants (excluding any placement warrants held by our sponsor or its permitted transferees) at any time after they become
exercisable and prior to their expiration, at $0.01 per warrant, provided that the last reported sales price (or the closing bid price
of our Class A common stock in the event the shares of our Class A common stock are not traded on any specific trading day)
of the Class A common stock equals or exceeds $18.00 per share (as adjusted for stock splits, stock dividends, reorganizations and
the like) for any 20 trading days within a 30 trading-day period ending on the third trading day prior to the date we send proper notice
of such redemption, provided that on the date we give notice of redemption and during the entire period thereafter until the time we
redeem the warrants, we have an effective registration statement under the Securities Act covering the shares of Class A common
stock issuable upon exercise of the warrants and a current prospectus relating to them is available. If and when the warrants become
redeemable by us, we may exercise our redemption right even if we are unable to register or qualify the underlying securities for sale
under all applicable state securities laws. As a result, we may redeem the warrants as set forth above even if the holders are otherwise
unable to exercise the warrants. Redemption of the outstanding warrants could force you: (i) to exercise your warrants and pay the
exercise price therefor at a time when it may be disadvantageous for you to do so, (ii) to sell your warrants at the then-current
market price when you might otherwise wish to hold your warrants or (iii) to accept the nominal redemption price which, at the time
the outstanding warrants are called for redemption, is likely to be substantially less than the market value of your warrants.
Our warrants and founder shares may have
an adverse effect on the market price of our Class A common stock and make it more difficult to effectuate a business combination.
In this offering, we
will be issuing warrants to purchase 11,000,000 shares of our Class A common stock (or up to 12,650,000 shares of Class A common
stock if the underwriter’s overallotment option is exercised in full) as part of the public units. In addition, on the closing
date of this offering, we will sell 890,000 placement units to our sponsor (or 990,000 if the underwriter’s overallotment option
is exercised in full) held by our sponsor, with each unit consisting of one placement share and one-half of one placement warrant, each
whole warrant exercisable to purchase one share of Class A common stock. Prior to this offering, we issued an aggregate of 8,763,333
founder shares in a private placement. The founder shares are convertible into shares of Class A common stock on a one-for-one basis,
subject to adjustment as set forth herein. In addition, if our sponsor makes any working capital loans, such loans may be converted into
units, at the price of $10.00 per unit at the option of the lender. Such units would be identical to the placement units.
To the extent we issue shares
of Class A common stock to effectuate a business combination, the potential for the issuance of a substantial number of additional
shares of Class A common stock upon exercise of these warrants and conversion rights could make us a less attractive acquisition
vehicle to a target business. Any such issuance will increase the number of issued and outstanding shares of our Class A common stock
and reduce the value of the shares of Class A common stock issued to complete the business combination. Therefore, our warrants and
founder shares may make it more difficult to effectuate a business combination or increase the cost of acquiring the target business.
The placement warrants are
identical to the warrants sold as part of the units in this offering except that, so long as they are held by the initial purchasers or
their permitted transferees, (i) may not (including the Class A common stock issuable
upon exercise of these warrants), subject to certain limited exceptions, be transferred, assigned or sold until 30 days after the
completion of our initial business combination, and (ii) will be
entitled to registration rights.
Because each unit contains one-half of one
warrant and only a whole warrant may be exercised, the units may be worth less than units of other blank check companies.
Each unit contains one-half
of one warrant. Because, pursuant to the warrant agreement, the warrants may only be exercised for a whole number of shares, only a whole
warrant may be exercised at any given time. This is different from other offerings similar to ours whose units include one share of common
stock and one warrant to purchase one whole share. We have established the components of the units in this way in order to reduce the
dilutive effect of the warrants upon completion of a business combination since the warrants will be exercisable in the aggregate for
one-half of the number of shares compared to units that each contain a warrant to purchase one whole share, thus making us, we believe,
a more attractive business combination partner for target businesses. Nevertheless, this unit structure may cause our units to be worth
less than if they included a warrant to purchase one whole share.
A provision of our warrant agreement may
make it more difficult for us to consummate an initial business combination.
Unlike many blank check companies,
if (x) we issue additional shares of Class A common stock or equity-linked securities for capital raising purposes in connection
with the closing of our initial business combination at an issue price or effective issue price of less than $9.20 per share (with such
issue price or effective issue price to be determined in good faith by us and in the case of any such issuance to our sponsor or its affiliates,
without taking into account any founder shares held by our initial stockholders or such affiliates, as applicable, prior to such issuance)
(the “Newly Issued Price”), (y) the aggregate gross proceeds from such issuances represent more than 50% of the total
equity proceeds, and interest thereon, available for the funding of our initial business combination on the date of the completion of
our initial business combination (net of redemptions), and (z) the volume-weighted average trading price of our shares of Class A
common stock during the 20 trading day period starting on the trading day prior to the day on which we complete our initial business combination
(such price, the “Market Value”) is below $9.20 per share, the exercise price of the warrants will be adjusted (to the nearest
cent) to be equal to 115% of the higher of the Market Value and the Newly Issued Price, and the $10.00 and $18.00 per share redemption
trigger prices described adjacent to “Description of Securities — Warrants — Public Warrants” will be
adjusted (to the nearest cent) to be equal to 100% and 180% of the higher of the Market Value and the Newly Issued Price, respectively.
This may make it more difficult for us to consummate an initial business combination with a target business.
Provisions in our amended and restated certificate
of incorporation and Delaware law may inhibit a takeover of us, which could limit the price investors might be willing to pay in the future
for our common stock and could entrench management.
Our amended and restated
certificate of incorporation contains provisions that may discourage unsolicited takeover proposals that stockholders may consider to
be in their best interests. These provisions include a staggered board of directors and the ability of the board of directors to designate
the terms of and issue new series of preferred shares, which may make more difficult the removal of management and may discourage transactions
that otherwise could involve payment of a premium over prevailing market prices for our securities. We are also subject to anti-takeover
provisions under Delaware law, which could delay or prevent a change of control. Together these provisions may make the removal of management
more difficult and may discourage transactions that otherwise could involve payment of a premium over prevailing market prices for our
securities.
An investment in this offering may result
in uncertain or adverse United States federal income tax consequences.
An
investment in this offering may result in uncertain United States federal income tax consequences. For instance, because there are
no authorities that directly address instruments similar to the units we are issuing in this offering, the allocation an investor makes
with respect to the purchase price of a unit between the share of Class A common stock and the one-half of one warrant included in
each unit could be challenged by the Internal Revenue Service (“IRS”)
or the courts. In addition, if we are determined to be a personal holding company
for U.S. federal income tax purposes, our taxable income would be subjected to an additional 20% federal income tax, which would reduce
the net after-tax amount of interest income earned on the funds placed in our trust account. Furthermore, the United States
federal income tax consequences of a cashless exercise of a warrant is unclear under current law, and the adjustment to the exercise price
and/or redemption price of the warrants could give rise to dividend income to investors without a corresponding payment of cash. Finally,
it is unclear whether the redemption rights with respect to our shares of common stock suspend the running of a U.S. holder’s holding
period for purposes of determining whether any gain or loss realized by such holder on the sale or exchange of common stock is long-term
capital gain or loss and for determining whether any dividend we pay would be considered a “qualified dividend” for federal
income tax purposes. See the section titled “Certain United States Federal Income Tax Considerations” for a summary of
the principal United States federal income tax consequences of an investment in our securities. Prospective investors are urged to
consult their tax advisors with respect to these and other tax consequences when purchasing, holding or disposing of our securities.
Our amended and restated certificate of
incorporation will require, to the fullest extent permitted by law, that derivative actions brought in our name, actions against our directors,
officers, other employees or stockholders for breach of fiduciary duty and other similar actions may be brought only in the Court of Chancery
in the State of Delaware and, if brought outside of Delaware, the stockholder bringing the suit will be deemed to have consented to service
of process on such stockholder’s counsel, which may have the effect of discouraging lawsuits against our directors, officers, other
employees or stockholders.
Our amended and restated
certificate of incorporation will require, to the fullest extent permitted by law, that derivative actions brought in our name, actions
against our directors, officers, other employees or stockholders for breach of fiduciary duty and other similar actions may be brought
only in the Court of Chancery in the State of Delaware and, if brought outside of Delaware, the stockholder bringing the suit will be
deemed to have consented to service of process on such stockholder’s counsel except any action (A) as to which the Court of
Chancery in the State of Delaware determines that there is an indispensable party not subject to the jurisdiction of the Court of Chancery
(and the indispensable party does not consent to the personal jurisdiction of the Court of Chancery within ten days following such determination),
(B) which is vested in the exclusive jurisdiction of a court or forum other than the Court of Chancery, or (C) for which the
Court of Chancery does not have subject matter jurisdiction. Any person or entity purchasing or otherwise acquiring any interest in shares
of our capital stock shall be deemed to have notice of and consented to the forum provisions in our amended and restated certificate of
incorporation.
This choice of forum provision
may limit a stockholder’s ability to bring a claim in a judicial forum that it finds favorable for disputes with us or any of our
directors, officers, other employees or stockholders, which may discourage lawsuits with respect to such claims. Alternatively, if a court
were to find the choice of forum provision contained in our amended and restated certificate of incorporation to be inapplicable or unenforceable
in an action, we may incur additional costs associated with resolving such action in other jurisdictions, which could harm our business,
operating results and financial condition.
Our amended and restated
certificate of incorporation provides that the exclusive forum provision will be applicable to the fullest extent permitted by applicable
law, subject to certain exceptions. Section 27 of the Exchange Act creates exclusive federal jurisdiction over all suits brought
to enforce any duty or liability created by the Exchange Act or the rules and regulations thereunder. As a result, the exclusive
forum provision will not apply to suits brought to enforce any duty or liability created by the Exchange Act or any other claim for which
the federal courts have exclusive jurisdiction. In addition, our amended and restated certificate of incorporation provides that, unless
we consent in writing to the selection of an alternative forum, the federal district courts of the United States of America shall,
to the fullest extent permitted by law, be the exclusive forum for the resolution of any complaint asserting a cause of action arising
under the Securities Act of 1933, as amended, or the rules and regulations promulgated thereunder. We note, however, that there is
uncertainty as to whether a court would enforce this provision and that investors cannot waive compliance with the federal securities
laws and the rules and regulations thereunder. Section 22 of the Securities Act creates concurrent jurisdiction for state and
federal courts over all suits brought to enforce any duty or liability created by the Securities Act or the rules and regulations
thereunder.
General Risk Factors
We are a newly formed company with no operating
history and no revenue and, accordingly, you have no basis on which to evaluate our ability to achieve our business objective.
We are a newly formed company
with no operating history and no revenue. We will not commence operations until we obtain funding through this offering and consummate
our initial business combination. Because we lack an operating history, you have no basis upon which to evaluate our ability to achieve
our business objective of acquiring one or more operating businesses in the Target Sectors. We have no plans, arrangements or understandings
with any prospective target business concerning a business combination and may be unable to complete a business combination. If we fail
to complete a business combination, we will never generate any operating revenues.
Changes in laws or regulations, or a failure
to comply with any laws and regulations, may adversely affect our business, investments and results of operations.
We are subject to laws and
regulations enacted by national, regional and local governments, including in particular, reporting and other requirements under the Exchange
Act. Compliance with, and monitoring of, applicable laws and regulations may be difficult, time consuming and costly. Those laws and regulations
and their interpretation and application may also change from time to time and those changes could have a material adverse effect on our
business, investments and results of operations. In addition, a failure to comply with applicable laws or regulations, as interpreted
and applied, could result in fines, injunctive relief or similar remedies which could be costly to us or limit our ability to complete
an initial business combination or operate the post-combination company successfully.
Past performance by our management team
may not be indicative of future performance of an investment in the Company.
Past performance by our management
team is not a guarantee either (i) of success with respect to any business combination we may consummate or (ii) that we will
be able to locate a suitable candidate for our initial business combination. You should not rely on the historical record of our management
team’s performance as indicative of our future performance of an investment in the company or the returns the company will, or is
likely to, generate going forward.
We are an emerging growth company and a
smaller reporting company within the meaning of the Securities Act, and if we take advantage of certain exemptions from disclosure requirements
available to emerging growth companies or smaller reporting companies, this could make our securities less attractive to investors and
may make it more difficult to compare our performance with other public companies.
We are an “emerging
growth company” within the meaning of the Securities Act, as modified by the JOBS Act, and we may take advantage of certain exemptions
from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but
not limited to, not being required to comply with the auditor internal controls attestation requirements of Section 404 of the Sarbanes-Oxley
Act, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from
the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments
not previously approved. As a result, our stockholders may not have access to certain information they may deem important. We could be
an emerging growth company for up to five years, although circumstances could cause us to lose that status earlier, including if the market
value of our Class A common stock held by non-affiliates exceeds $700 million as of any June 30 before that time, in which case
we would no longer be an emerging growth company as of the following December 31. We cannot predict whether investors will find our
securities less attractive because we will rely on these exemptions. If some investors find our securities less attractive as a result
of our reliance on these exemptions, the trading prices of our securities may be lower than they otherwise would be, there may be a less
active trading market for our securities and the trading prices of our securities may be more volatile.
Further, Section 102(b)(1) of
the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until
private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class
of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS
Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging
growth companies but any such an election to opt out is irrevocable. We have elected not to opt out of such extended transition period
which means that when a standard is issued or revised and it has different application dates for public or private companies, we, as an
emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may
make comparison of our financial statements with another public company which is neither an emerging growth company nor an emerging growth
company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting
standards used.
Additionally,
we are a “smaller reporting company” as defined in Item 10(f)(1) of Regulation S-K. Smaller reporting companies
may take advantage of certain reduced disclosure obligations, including, among other things, providing only two years of audited financial
statements. We will remain a smaller reporting company until the last day of the fiscal year in which (1) the market value of our
common stock held by non-affiliates exceeds $250 million as of the prior June 30th,
and (2) our annual revenues exceeded $100 million during such completed fiscal year and the market value of our common stock held
by non-affiliates exceeds $700 million as of the prior June 30th. To the extent we
take advantage of such reduced disclosure obligations, it may also make comparison of our financial statements with other public companies
difficult or impossible.
The requirements of being a public company
may strain our resources and divert management’s attention.
As a public company, we will
be subject to the reporting requirements of the Exchange Act, the Sarbanes-Oxley Act of 2002 (which we refer to as the Sarbanes-Oxley
Act), the Dodd-Frank Wall Street Reform and Consumer Protection Act (which we refer to as the Dodd-Frank Act), the listing requirements
of Nasdaq and other applicable securities rules and regulations. Compliance with these rules and regulations will increase our
legal and financial compliance costs, make some activities more difficult, time-consuming or costly and increase demand on our systems
and resources, particularly after we are no longer an “emerging growth company.” The Sarbanes-Oxley Act requires, among other
things, that we maintain effective disclosure controls and procedures and internal control over financial reporting. In order to maintain
and, if required, improve our disclosure controls and procedures and internal control over financial reporting to meet this standard,
significant resources and management oversight may be required. As a result, management’s attention may be diverted from other business
concerns, which could adversely affect our business and operating results. We may need to hire more employees in the future or engage
outside consultants to comply with these requirements, which will increase our costs and expenses.
In addition, changing laws,
regulations and standards relating to corporate governance and public disclosure are creating uncertainty for public companies, increasing
legal and financial compliance costs and making some activities more time consuming. These laws, regulations and standards are subject
to varying interpretations, in many cases due to their lack of specificity, and, as a result, their application in practice may evolve
over time as new guidance is provided by regulatory and governing bodies. This could result in continuing uncertainty regarding compliance
matters and higher costs necessitated by ongoing revisions to disclosure and governance practices. We intend to invest resources to comply
with evolving laws, regulations and standards, and this investment may result in increased general and administrative expenses and a diversion
of management’s time and attention from revenue-generating activities to compliance activities. If our efforts to comply with new
laws, regulations and standards differ from the activities intended by regulatory or governing bodies due to ambiguities related to their
application and practice, regulatory authorities may initiate legal proceedings against us and our business may be adversely affected.
However, for as long as we
remain an “emerging growth company” as defined in the JOBS Act, we may take advantage of certain exemptions from various reporting
requirements that are applicable to “emerging growth companies” including, but not limited to, not being required to comply
with the auditor attestation requirements of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in
our periodic reports and proxy statements, and exemptions from the requirement of holding a nonbinding advisory vote on executive compensation
and stockholder approval of any golden parachute payments not previously approved. We may take advantage of these reporting exemptions
until we are no longer an “emerging growth company.”
We will remain an emerging
growth company until the earlier of (1) the last day of the fiscal year (a) following the fifth anniversary of the completion
of this offering, (b) in which we have total annual gross revenue of at least $1.07 billion, or (c) in which we are deemed to
be a large accelerated filer, which means the market value of our shares of common stock that are held by non-affiliates exceeds $700
million as of the prior June 30, and (2) the date on which we have issued more than $1.0 billion in non-convertible debt during
the prior three year period.
We may face risks related to environmental,
social and corporate governance (ESG) businesses.
Business combinations with
ESG businesses may involve special considerations and risks. If we complete our initial business combination with an ESG business, we
will be subject to the following risks, any of which could be detrimental to us and the business we acquire:
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•
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If the company or business we acquire provides products or
services which relate to the facilitation of ESG businesses, and such product or service fails or is compromised, we may be subject to
claims from both the firms to whom we provide our products and services and the clients they serve;
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|
•
|
If we are unable to keep pace with evolving technology and
changes in the ESG industry, our revenues and future prospects may decline;
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|
•
|
Our ability to provide products and services to customers
may be reduced or eliminated by regulatory changes;
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|
•
|
Any business or company we acquire could be vulnerable to
cyberattack or theft of individual identities or personal data;
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|
•
|
Difficulties with any products or services we provide could
damage our reputation and business;
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|
•
|
A failure to comply with privacy regulations could adversely
affect relations with customers and have a negative impact on business;
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|
•
|
We may not be able to protect our intellectual property and
we may be subject to infringement claims.
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Any of the foregoing could
have a negative adverse impact on our operations following a business combination. However, our efforts in identifying prospective target
businesses will not be limited to the ESG sector. Accordingly, if we acquire a target business in another industry, these risks will likely
not affect us and we will be subject to other risks attendant with the specific industry in which we operate or target business which
we acquire, none of which can be presently ascertained.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Statements contained in this prospectus that reflect
our current views with respect to future events and financial performance, and any other statements of a future or forward-looking nature,
constitute “forward-looking statements” for the purposes of federal securities laws. Our forward-looking statements include,
but are not limited to, statements regarding our or our management’s expectations, hopes, beliefs, intentions or strategies regarding
the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances,
including any underlying assumptions, are forward-looking statements. The words “anticipate,” “believe,” “continue,”
“could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,”
“possible,” “potential,” “predict,” “project,” “should,” “would,”
“will,” “approximately,” “shall” and similar expressions may identify forward-looking statements,
but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this prospectus may
include, for example, statements about:
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|
•
|
the ability of our officers and directors to generate potential
investment opportunities;
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|
|
•
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our ability to complete our initial business combination;
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|
•
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our success in retaining or recruiting, or changes required
in, our officers, key employees or directors following our initial business combination;
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•
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the allocation by our officers and directors of their time
to other businesses and their potential conflicts of interest with our business or in approving our initial business combination;
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•
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our potential ability to obtain additional financing to complete
our initial business combination;
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•
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the pool of prospective target businesses;
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•
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the listing on, or the delisting of our securities from,
Nasdaq or our ability to have our securities listed on Nasdaq or another national securities exchange following our initial business
combination;
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•
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potential changes in control if we acquire one or more target
businesses for stock;
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|
•
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the potential liquidity and trading of the securities we
will issue in this offering;
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•
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the use of proceeds not held in the trust account or available
to us from interest income on the trust account balance; or
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•
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our financial performance following this offering.
|
The forward-looking statements contained in this
prospectus are based on our current expectations and beliefs concerning future developments and their potential effects on us. We cannot
assure you that future developments affecting us will be those that we have anticipated. These forward-looking statements involve a number
of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be
materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are
not limited to, those factors described under the heading “Risk Factors”. Should one or more of these risks or uncertainties
materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these
forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as may be required under applicable securities laws.
USE OF PROCEEDS
We are offering 22,000,000
units at an offering price of $10.00 per unit. We estimate that the net proceeds of this offering together with the funds we will receive
from the sale of the placement units (of which $222,200,000 will be deposited into the trust account) will be used as set forth in the
following table.
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Without
Overallotment
Option
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|
Overallotment
Option
Exercised in Full
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Gross proceeds
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|
|
|
|
|
|
|
|
|
Proceeds
from units offered to the public
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$
|
220,000,000
|
|
|
$
|
253,000,000
|
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Proceeds
from private placement
|
|
|
8,900,000
|
|
|
|
9,900,000
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Total gross proceeds
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$
|
228,900,000
|
|
|
$
|
262,900,000
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|
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Estimated
offering expenses(1)
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|
|
|
|
|
|
|
|
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Underwriting
commissions (2.0% of gross proceeds from units offered to public, excluding deferred portion)(2)(3)
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$
|
4,400,000
|
|
|
$
|
5,060,000
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|
|
Legal fees and
expenses
|
|
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250,000
|
|
|
|
250,000
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Printing and engraving
expenses
|
|
|
40,000
|
|
|
|
40,000
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|
|
Accounting fees
and expenses
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|
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45,000
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|
|
|
45,000
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|
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SEC fees
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|
|
36,939
|
|
|
|
36,939
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FINRA fees
|
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|
60,465
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|
|
|
60,465
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NASDAQ Global Market
Listing Fees
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|
75,000
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|
|
|
75,000
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|
|
Travel and roadshow
|
|
|
20,000
|
|
|
|
20,000
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|
|
Miscellaneous
expenses
|
|
|
12,596
|
|
|
|
12,596
|
|
|
Total
offering expenses
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|
$
|
4,940,000
|
|
|
$
|
5,600,000
|
|
|
Proceeds
after offering expenses
|
|
|
223,960,000
|
|
|
|
257,300,000
|
|
|
Held in trust account
|
|
$
|
222,200,000
|
|
|
$
|
255,530,000
|
|
|
%
of public offering proceeds held in trust(4)
|
|
|
101.0
|
%
|
|
|
101.0
|
%
|
|
Held
outside trust account
|
|
$
|
1,760,000
|
|
|
$
|
1,770,000
|
|
The following table shows
the use of the net approximately $1,760,000 (or $1,770,000 if the underwriter exercises its overallotment option in full) of net proceeds
not held in the trust account.(5)
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|
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Amount
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|
|
Percentage
|
|
|
|
Use of net proceeds not held in trust and
working capital loans from our sponsor(4)
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|
|
|
|
|
|
|
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|
Legal, accounting, due diligence, travel, consulting
and other expenses in connection with any business combination(6)
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|
$
|
320,000
|
|
|
|
18.2
|
%
|
|
|
Payment for office space, administrative and
shared personnel support services ($30,000 per month for up to 18 months, assuming our sponsor does not exercise its option to extend
to 21 months)
|
|
|
540,000
|
|
|
|
30.7
|
%
|
|
|
Legal and accounting fees relating to SEC reporting
obligations
|
|
|
125,000
|
|
|
|
7.1
|
%
|
|
|
Reserve for liquidation expenses
|
|
|
100,000
|
|
|
|
5.6
|
%
|
|
|
Nasdaq continued listing fees
|
|
|
75,000
|
|
|
|
4.3
|
%
|
|
|
Director and officer liability insurance premiums
|
|
|
540,000
|
|
|
|
30.7
|
%
|
|
|
Working capital to cover miscellaneous expenses
|
|
|
60,000
|
|
|
|
3.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
1,760,000
|
|
|
|
100.0
|
%
|
|
|
|
(1)
|
A portion of the offering expenses will be paid from the proceeds of a loan from our sponsor or one of its affiliates of up to $300,000 as described in this prospectus, of which, no amount was outstanding as of the date hereof. This loan will be repaid upon completion of this offering out of the proceeds that have been allocated for the payment of offering expenses (other than underwriting commissions) and amounts not to be held in the trust account. In the event that offering expenses are less than set forth in this table, any such amounts will be used for post-closing working capital expenses. In the event that the offering expenses are more than as set forth in this table, we may fund such excess with funds not held in the trust account.
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|
(2)
|
The underwriter has agreed to defer until consummation of
our initial business combination $7.7 million of their underwriting commissions (or approximately $8.9 million if the
underwriter’s overallotment option is exercised in full), which equals 3.5% of the gross proceeds from the units sold to the
public, including any units purchased pursuant to the underwriter’s overallotment option. Upon consummation of our initial
business combination, the deferred commissions will be paid to the underwriter from the funds held in the trust account, and the
remaining funds will be released to us and can be used to pay all or a portion of the purchase price of the business or businesses
with which our initial business combination occurs or for general corporate purposes, including payment of principal or interest on
indebtedness incurred in connection with our initial business combination, to fund the purchases of other companies or for working
capital.
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|
(3)
|
Amount shown as underwriting commission includes the fee payable to CCM at the closing of this offering. For financial advisory services provided by CCM in connection with this offering, we have agreed to pay CCM a fee in an amount equal to 0.3% of the aggregate proceeds of this offering (excluding the proceeds of the exercise of the overallotment option, if any) net of underwriter’s out-of-pocket expenses. We will also engage CCM as an advisor in connection with our initial business combination for which it will earn an advisory fee of 0.525% of the proceeds of this offering (excluding the proceeds of the exercise of the overallotment option, if any) payable at closing of our initial business combination. CCM will also be entitled to an advisory fee equal to 0.825% of the aggregate proceeds of the exercise of the overallotment option, if any, payable at closing of our initial business combination. CCM’s fees will be reimbursed to us by the underwriters and will not result in any incremental fees to us.
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|
(4)
|
$222,200,000
from the proceeds of this offering and the private placement ($255,530,000 if the underwriter
exercises its overallotment option in full), including deferred underwriting commissions
of $7.7 million (approximately $8.9 million if the underwriter exercises its overallotment
option in full), will be placed in a trust account held at JPMorgan Chase Bank, N.A., located
in the United States, with Continental Stock Transfer & Trust Company, acting
as trustee.
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|
(5)
|
These expenses are estimates only. Our actual expenditures for some or all of these items may differ from the estimates set forth herein. For example, we may incur greater legal and accounting expenses than our current estimates in connection with negotiating and structuring a business combination based upon the level of complexity of such business combination. If we identify an acquisition target in a specific industry subject to industry specific regulation, we may incur additional expenses associated with legal due diligence and the engagement of special legal counsel. In addition, our staffing needs may vary, and as a result, we may engage a number of consultants to assist with legal and financial due diligence. We do not anticipate any change in our intended use of proceeds, other than fluctuations among the current categories of allocated expenses, which fluctuations, to the extent they exceed current estimates for any specific category of expenses, would not be available for our expenses.
|
|
(6)
|
Includes estimated amounts that may also be used in connection with our initial business combination to fund a “no shop” provision and commitment fees for financing.
|
A total of $222,200,000
(or $255,530,000 if the underwriter’s overallotment option is exercised in full) of the aggregate net proceeds from this offering
and the private placement, including $7.7 million (or approximately $8.9 million if the underwriter exercises its overallotment option
in full) of the deferred underwriting discount, will be placed in a trust account with Continental Stock Transfer & Trust Company
acting as trustee and will be invested only in United States government treasury bills with a maturity of 185 days or less
or in money market funds investing solely in United States Treasuries and meeting certain conditions under Rule 2a-7 under
the Investment Company Act. Except for interest income released to us for the payment of taxes or dissolution expenses, none of the funds
held in the trust account will be released, subject to the requirements of law, until the earlier of (i) the consummation of our
initial business combination; (ii) the redemption of our public shares if we are unable to consummate a business combination within
18 months from the completion of this offering, or 21 months from the closing of this offering if we have executed a letter of intent,
agreement in principle or definitive agreement for our initial business combination within 18 months from the closing of, subject to
applicable law; (iii) the redemption of any public shares properly tendered in connection with a stockholder vote to approve an
amendment to our amended and restated certificate of incorporation (A) to modify the substance or timing of our obligation to provide
for the redemption of our public shares in connection with an initial business combination or to redeem 100% of our public shares if
we have not consummated our initial business combination within 18 months from the closing of this offering, or 21 months from the
closing of this offering if we have executed a letter of intent, agreement in principle or definitive agreement for our initial business
combination within 18 months from the closing of this offering but have not completed our initial business combination within such
18-month period, or (B) with respect to any other provision relating to stockholders’ rights or pre-initial business
combination activity; or (iv) otherwise upon our liquidation or if our board of directors resolves to liquidate the trust account
and ceases to pursue the consummation of a business combination prior to the expiration of the 18 month period, which is extendable at
our sponsor’s option to up to 21 months as described herein (our board of directors may determine to liquidate the trust account
prior to such expiration if it determines, in its business judgment, that it is improbable within the remaining time to identify an attractive
business combination or satisfy regulatory and other business and legal requirements to consummate a business combination). Based on
current interest rates, we estimate that the interest earned on the trust account will be approximately $223,300 per year, assuming an
interest rate of 0.1% per year.
The net proceeds held in the trust account (excluding
any deferred underwriting commissions) may be used as consideration to pay the sellers of a target business with which we ultimately complete
a business combination. If we pay for our initial business combination using stock or debt securities, or if we do not use all of the
funds released from the trust account for payment of the purchase price in connection with our business combination, we may use the remaining
cash released from the trust account for general corporate purposes, including for maintenance or expansion of the operations of acquired
businesses, the payment of principal or interest due on indebtedness incurred in consummating the initial business combination, to fund
the purchase of other companies or for working capital.
We believe that the net proceeds from this offering
and the private placement held outside of the trust will be sufficient to pay our costs and expenses prior to our initial business combination.
This belief is based on the fact that while we may begin preliminary due diligence of a target business in connection with an indication
of interest, we intend to undertake in-depth due diligence, depending on the circumstances of the relevant prospective acquisition, only
after we have negotiated and signed a letter of intent or other preliminary agreement that addresses the terms of a business combination.
However, if our estimate of the costs of undertaking in-depth due diligence and negotiating a business combination is less than the actual
amount necessary to do so, we may be required to raise additional capital, the amount, availability and cost of which is currently unascertainable.
In this event, we could seek such additional capital through loans or additional investments from members of our management team, but
such members of our management team are not under any obligation to advance funds to, or invest in, us.
Our sponsor has agreed to loan us up to $300,000
to be used for a portion of the expenses of this offering. This loan is non-interest bearing, unsecured and is due at the earlier of March 30,
2022 or the closing of this offering. The loan will be repaid upon the closing of this offering out of the offering proceeds
not held in the trust account.
In addition, in order to finance transaction costs
in connection with an intended initial business combination, our sponsor or an affiliate of our sponsor or certain of our officers and
directors may, but are not obligated to, loan us funds as may be required. If we complete our initial business combination, we would repay
such loaned amounts out of the proceeds of the trust account released to us. Otherwise, such loans would be repaid only out of funds held
outside the trust account. In the event that our initial business combination does not close, we may use a portion of the working capital
held outside the trust account to repay such loaned amounts but no proceeds from our trust account would be used to repay such loaned
amounts. Up to $2,000,000 of such loans may be convertible into units, at a price of $10.00 per unit at the option of the lender. The
units would be identical to the placement units. The terms of such loans by our officers and directors, if any, have not been determined
and no written agreements exist with respect to such loans. Prior to the completion of our initial business combination, we do not expect
to seek loans from parties other than our sponsor or an affiliate of our sponsor as we do not believe third parties will be willing to
loan such funds and provide a waiver against any and all rights to seek access to funds in our trust account.
We will enter into an Administrative Services
Agreement pursuant to which we will pay our sponsor or its designee a total of $30,000 per month for office space, administrative and
shared personnel support services. Upon completion of our initial business combination or our liquidation, we will cease paying these
monthly fees.
If we seek stockholder approval of our initial
business combination and we do not conduct redemptions in connection with our business combination pursuant to the tender offer rules,
our sponsor, directors, officers or their respective affiliates may purchase shares in the open market or in privately negotiated transactions
either prior to or following the consummation of our initial business combination, although as of the date of this prospectus (apart from
the purchase of the placement units) they have no commitments, plans or intentions to engage in such transactions. If they do effect such
purchases, we anticipate that they would approach a limited number of large holders of our securities that have voted against the business
combination or sought redemption of their shares, or that have indicated an intention to do so, and engage in direct negotiations for
the purchase of such holders’ positions. All holders approached in this manner would be institutional or sophisticated holders.
There is no limit on the number of shares they may acquire. Our sponsor, directors, officers, advisors or their affiliates will not make
any such purchases when they are in possession of any material nonpublic information not disclosed to the seller or during a restricted
period under Regulation M under the Exchange Act or in transactions that would violate Section 9(a)(2) or Rule 10(b)-5
under the Exchange Act. Although they do not currently anticipate paying any premium purchase price for such public shares, there is no
limit on the price they may pay. They may also enter into transactions to provide such holders with incentives to acquire shares or vote
their shares in favor of an initial business combination. No funds in the trust account may be used to effect purchases of shares in the
open market or in privately negotiated transactions.
In no event will we redeem our public shares in
an amount that would cause our net tangible assets to be less than $5,000,001 upon consummation of our initial business combination. Moreover,
the redemption threshold may be further limited by the terms and conditions of our initial business combination. If the amount of redemptions
plus any cash required by our initial business combination would cause our net tangible assets to fall below $5,000,000, we would not
proceed with the redemption of our public shares or the business combination, and instead may search for an alternate business combination.
A public stockholder
will be entitled to receive funds from the trust account only upon the earlier to occur of: (i) the consummation of our initial
business combination; (ii) the redemption of our public shares if we are unable to consummate a business combination within 18 months
from the completion of this offering, or 21 months from the closing of this offering if we have executed a letter of intent, agreement
in principle or definitive agreement for our initial business combination within 18 months from the closing of, subject to applicable
law; (iii) the redemption of any public shares properly tendered in connection with a stockholder vote to amend our amended and
restated certificate of incorporation to modify the substance or timing of our obligation to redeem 100% of our public shares if we do
not complete our initial business combination within 18 months from the completion of this offering, or 21 months from the closing of
this offering if we have executed a letter of intent, agreement in principle or definitive agreement for our initial business combination
within 18 months from the closing of; or (iv) otherwise upon our liquidation or in the event our board of directors resolves to
liquidate the trust account and ceases to pursue the consummation of a business combination prior to the expiration of the 18 month period,
which is extendable at our sponsor’s option to up to 21 months as described herein (our board of directors may determine to liquidate
the trust account prior to such expiration if it determines, in its business judgment, that it is improbable within the remaining time
that we will be able to identify an attractive acquisition target or satisfy regulatory and other business and legal requirements to
consummate a business combination). In no other circumstances will a public stockholder have any right or interest of any kind to or
in the trust account.
The initial holders,
our officers and directors have agreed to waive their redemption rights with respect to their founder shares and placement shares, as
applicable, (i) in connection with the consummation of a business combination, (ii) in connection with a stockholder vote to
approve an amendment to our amended and restated certificate of incorporation (A) to modify the substance or timing of our obligation
to provide for the redemption of our public shares in connection with an initial business combination or to redeem 100% of our public
shares if we have not consummated our initial business combination within 18 months from the closing of this offering, or 21 months
from the closing of this offering if we have executed a letter of intent, agreement in principle or definitive agreement for our initial
business combination within 18 months from the closing of this offering but have not completed our initial business combination
within such 18-month period, or (B) with respect to any other provision relating to stockholders’ rights or pre-initial
business combination activity and (iii) if we fail to consummate a business combination within 18 months from the completion of
this offering, or 21 months from the closing of this offering if we have executed a letter of intent, agreement in principle or definitive
agreement for our initial business combination within 18 months from the closing of, or if we liquidate prior to the expiration of the
18 month period (or 21-month period if extended at the option of our sponsor as described herein). However, the initial holders and our
directors and officers will be entitled to redemption rights with respect to any public shares held by them if we fail to consummate
a business combination or liquidate within the 18-month period (or 21-month period if extended at the option of our sponsor as described
herein).
DIVIDEND POLICY
We have not paid any cash dividends on our common
stock to date and do not intend to pay cash dividends before we complete our initial business combination. The payment of cash dividends
in the future will depend upon our revenues and earnings, if any, capital requirements and general financial condition subsequent to completion
of an initial business combination. The payment of any cash dividends subsequent to an initial business combination will be within the
discretion of our board of directors. In addition, our board of directors is not currently contemplating and does not anticipate declaring
any stock dividends in the foreseeable future, except if we increase the size of the offering pursuant to Rule 462(b) under
the Securities Act, in which case we may effect a stock dividend immediately prior to the consummation of the offering in an amount such
that founder shares will remain equal to 25% of the aggregate of our public shares, placement shares and the founder shares. Further,
if we incur any indebtedness in connection with a business combination, our ability to declare dividends may be limited by restrictive
covenants imposed by the debt instruments.
DILUTION
The difference between the public offering price
per share of common stock, assuming no value is attributed to the warrants included in the units we are offering pursuant to this prospectus
or the warrants contained in the placement units, and the pro forma net tangible book value per share of our common stock after this offering
constitutes the dilution to investors in this offering. Such calculation does not reflect any dilution associated with the sale and exercise
of warrants, including the placement warrants, which would cause the actual dilution to the public stockholders to be higher, particularly
where a cashless exercise is utilized. Net tangible book value per share is determined by dividing our net tangible book value, which
is our total tangible assets less total liabilities (including the value of common stock which may be redeemed for cash), by the number
of outstanding shares of our common stock.
At September 30, 2021,
our net tangible book deficit was $80,368, or approximately ($0.01) per share of common stock. After giving effect to the sale of 22,000,000
shares of common stock included in the units we are offering by this prospectus, the sale of the placement units and the deduction of
underwriting commissions and estimated expenses of this offering, our pro forma net tangible book deficit at September 30, 2021,
would have been $(0.69) per share, (or $(0.71) per share if the underwriter’s over-allotment option is exercised in full) representing
an immediate increase in net tangible book deficit (as decreased by the value of the approximately 22,000,000 shares of common stock that
may be redeemed for cash, or 25,300,000 shares of common stock if the underwriter’s over-allotment option is exercised in full)
of $(0.68) per share (or $(0.71) if the underwriter’s over-allotment option is exercised in full) to the initial stockholders as
of the date of this prospectus and an immediate dilution of $10.69 per share or 106.90% (or $10.72 per share or 107.20% if the underwriter’s
over-allotment option is exercised in full) to our public stockholders not exercising their redemption rights. The following table illustrates
the dilution to the public stockholders on a per-share basis, assuming no value is attributed to the warrants included in the units or
the placement warrants:
The following table illustrates
the dilution to the public stockholders on a per-share basis, assuming no value is attributed to the warrants included in the units or
the placement units:
|
|
|
Without
Over-allotment
|
|
|
With
Over-allotment
|
|
|
Public offering price
|
|
$
|
10.00
|
|
|
$
|
10.00
|
|
|
Net tangible book value before this offering
|
|
|
(0.01
|
)
|
|
|
(0.01
|
)
|
|
Increase attributable to public stockholders
|
|
|
(0.68
|
)
|
|
|
(0.71
|
)
|
|
Pro forma net tangible book value after this offering and the sale of the placement units
|
|
$
|
(0.69
|
)
|
|
$
|
(0.71
|
)
|
|
Dilution to public stockholders
|
|
$
|
10.69
|
|
|
$
|
10.72
|
|
|
Percentage of dilution to public stockholders
|
|
|
106.90
|
%
|
|
|
107.20
|
%
|
For purposes of presentation,
we have reduced our pro forma net tangible book value after this offering (assuming no exercise of the underwriter’s overallotment
option) by $222,200,000 because holders of up to 100% of our public shares may redeem their shares for a pro rata share of the aggregate
amount then on deposit in the trust account at a per share redemption price equal to the amount in the trust account as set forth in
our tender offer or proxy materials (initially anticipated to be the aggregate amount held in trust two days prior to the commencement
of our tender offer or stockholders meeting, including any amounts representing interest earned on the trust account, less any interest
released to us for the payment of taxes or dissolution expenses), divided by the number of shares of common stock sold in this offering.
The following table sets forth information with respect to holders of founder shares and the public stockholders:
|
|
|
Total
shares(1)
|
|
|
Total
consideration
|
|
|
Average price
per share
|
|
Number
|
|
%
|
|
|
Amount
|
|
%
|
|
|
|
Holders
of founder shares
|
|
7,630,000
|
|
25.00
|
%
|
|
$
|
25,000
|
|
0.01
|
%
|
|
$
|
0.003
|
|
Holders
of placement shares
|
|
890,000
|
|
2.92
|
%
|
|
|
8,900,000
|
|
3.89
|
%
|
|
$
|
10.000
|
|
Public
stockholders
|
|
22,000,000
|
|
72.08
|
%
|
|
|
220,000,000
|
|
96.10
|
%
|
|
$
|
10.000
|
|
Total
|
|
30,520,000
|
|
100.00
|
%
|
|
$
|
228,925,000
|
|
100.00
|
%
|
|
|
|
|
|
(1)
|
Assumes
no exercise of the underwriter’s overallotment option and corresponding forfeiture
of 1,133,333 founder shares by the initial stockholders as a result thereof.
|
The pro forma net tangible book deficit per share
after the offering is calculated as follows:
|
|
|
Without
Over-allotment
|
|
|
With
Over-allotment
|
|
|
Numerator:
|
|
|
|
|
|
|
|
|
|
Net tangible book value before this offering
|
|
$
|
(80,368
|
)
|
|
$
|
(80,368
|
)
|
|
Net proceeds from this offering and sale of the placement units(1)
|
|
|
223,960,000
|
|
|
|
257,300,000
|
|
|
Plus: Offering costs paid in advance, excluded from tangible book value before this offering
|
|
|
105,160
|
|
|
|
105,160
|
|
|
Less: Deferred underwriting commissions
|
|
|
(7,700,000
|
)
|
|
|
(8,855,000
|
)
|
|
Less: Proceeds held in trust subject to redemption(2)
|
|
|
(222,200,000
|
)
|
|
|
(255,530,000
|
)
|
|
|
|
$
|
(5,915,208
|
)
|
|
$
|
(7,060,208
|
)
|
|
Denominator:
|
|
|
|
|
|
|
|
|
|
Class B common stock outstanding prior to this offering
|
|
|
8,763,333
|
|
|
|
8,763,333
|
|
|
Class B common stock forfeited if over-allotment is not exercised
|
|
|
(1,133,333
|
)
|
|
|
—
|
|
|
Class A common stock included in the units offered
|
|
|
22,000,000
|
|
|
|
25,300,000
|
|
|
Class A common stock included in the placement units offered
|
|
|
890,000
|
|
|
|
990,000
|
|
|
Less: common stock subject to redemption
|
|
|
(22,000,000
|
)
|
|
|
(25,300,000
|
)
|
|
|
|
|
8,520,000
|
|
|
|
9,753,333
|
|
|
|
(1)
|
Expenses applied against gross proceeds include offering expenses of $540,000 and underwriting commissions of $4,400,000 (or $5,060,000
if the underwriter’s overallotment option is exercised in full) (excluding deferred underwriting commissions). See “Use of
Proceeds.”
|
|
|
(2)
|
If we seek stockholder approval of our initial business combination and we do not conduct redemptions in connection with our initial
business combination pursuant to the tender offer rules, our sponsor, initial stockholders, directors, executive officers or their affiliates
may purchase shares or public warrants in privately negotiated transactions or in the open market either prior to or following the completion
of our initial business combination. In the event of any such purchases of our shares prior to the completion of our initial business
combination, the number of shares of Class A common stock subject to redemption will be reduced by the amount of any such purchases,
increasing the pro forma net tangible book value per share. See “Proposed Business — Effecting Our Initial Business Combination —
Permitted Purchases of Our Securities.”
|
CAPITALIZATION
The
following table sets forth our capitalization at September 30, 2021, and as adjusted to give effect to the filing of our
amended and restated certificate of incorporation, the sale of our units and the placement units and the application of the
estimated net proceeds derived from the sale of such securities:
|
|
|
September 30, 2021
|
|
|
|
|
Actual
|
|
|
As Adjusted(1)
|
|
|
Loan from related party(2)
|
|
$
|
68,133
|
|
|
$
|
—
|
|
|
Deferred underwriting commissions
|
|
|
—
|
|
|
|
(7,700,000
|
)
|
|
Class A common stock subject to possible redemption; -0- and 22,000,000 shares, actual and as adjusted, respectively(3)
|
|
|
—
|
|
|
|
222,200,000
|
|
|
Preferred stock, $0.0001 par value, -0- and 1,000,000 shares authorized, actual and as adjusted, respectively; none issued and outstanding, actual and as adjusted
|
|
|
—
|
|
|
|
—
|
|
|
Class A common stock, $0.0001 par value, 42,000,000 shares authorized, actual and as adjusted, respectively; -0- and 890,000 shares issued and outstanding (excluding -0- and 22,000,000 shares subject to possible redemption), actual and as adjusted, respectively()
|
|
|
—
|
|
|
|
89
|
|
|
Class B common stock, $0.0001 par value, 10,000,000 shares authorized; 8,763,333 and 7,630,000 shares issued and outstanding, actual and as adjusted, respectively(3)
|
|
|
876
|
|
|
|
763
|
|
|
Additional paid-in capital
|
|
|
24,124
|
|
|
|
—
|
|
|
Accumulated deficit
|
|
|
(208
|
)
|
|
|
(5,916,060
|
)
|
|
Total stockholders’ equity (deficit)
|
|
$
|
24,792
|
|
|
$
|
(5,915,208
|
)
|
|
Total capitalization
|
|
$
|
92,925
|
|
|
$
|
223,984,792
|
|
|
|
(1)
|
Assumes
no exercise of the underwriter’s over-allotment option and the corresponding forfeiture
of 1,133,333 Class B common stock held by our sponsor.
|
|
|
(2)
|
Our sponsor has agreed to loan us up to
$300,000 to be used for a portion of the expenses of this offering. As of September 30, 2021, we had $68,133 in
borrowings outstanding under the promissory note with our sponsor.
|
|
|
(3)
|
Upon the completion of our initial business combination, we
will provide our public stockholders with the opportunity to redeem their public shares for cash at a per share price equal to the aggregate
amount then on deposit in the trust account calculated as of two business days prior to the consummation of the initial business combination,
including interest earned on the funds held in the trust account and not previously released to us to pay our income taxes, if any, divided
by the number of the then-outstanding public shares, subject to the limitations described herein whereby redemptions cannot cause our
net tangible assets, after payment of the deferred underwriting commissions, to be less than $5,000,001 either prior to or upon consummation
of an initial business combination and any limitations (including, but not limited to, cash requirements) created by the terms of the
proposed business combination.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Overview
We are a blank check company incorporated as a
Delaware corporation for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization
or similar business combination with one or more businesses. We have not identified any acquisition target and we have not, nor has anyone
on our behalf, initiated any discussions, directly or indirectly, with respect to identifying any acquisition target. We intend to effectuate
our initial business combination using cash from the proceeds of this offering and the private placement of the placement units, our capital
stock, debt or a combination of these as the consideration to be paid in our initial business combination.
The issuance of additional shares of our stock
in a business combination:
|
|
•
|
may significantly dilute the equity interest of investors in
this offering;
|
|
|
•
|
may subordinate the rights of holders of common stock if preferred
stock is issued with rights senior to those afforded our common stock;
|
|
|
•
|
could cause a change in control if a substantial number of shares
of our common stock is issued, which may affect, among other things, our ability to use our net operating loss carry forwards, if any,
and could result in the resignation or removal of our present officers and directors;
|
|
|
•
|
may have the effect of delaying or preventing a change of control
of us by diluting the stock ownership or voting rights of a person seeking to obtain control of us; and
|
|
|
•
|
may adversely affect prevailing market prices for our common
stock and/or warrants.
|
Similarly, if we issue debt securities, it could
result in:
|
|
•
|
default and foreclosure on our assets if our operating revenues
after an initial business combination are insufficient to repay our debt obligations;
|
|
|
•
|
acceleration of our obligations to repay the indebtedness even
if we make all principal and interest payments when due if we breach certain covenants that require the maintenance of certain financial
ratios or reserves without a waiver or renegotiation of that covenant;
|
|
|
•
|
our immediate payment of all principal and accrued interest,
if any, if the debt security is payable on demand and the lender demands payment;
|
|
|
•
|
limitations on our ability to obtain additional financing if
the debt security contains covenants restricting our ability to incur debt;
|
|
|
•
|
our inability to pay dividends on our common stock due to covenants
limiting or prohibiting dividends;
|
|
|
•
|
using a substantial portion of our cash flow to pay principal
and interest on our debt, which will reduce, or possibly eliminate, the funds available for use as dividends on our common stock, expenses,
capital expenditures, acquisitions and other general corporate purposes;
|
|
|
•
|
limitations on our flexibility in planning for and reacting
to changes in our business and in the industry in which we operate;
|
|
|
•
|
increased vulnerability to adverse changes in general economic,
industry and competitive conditions and adverse changes in government regulation; and
|
|
|
•
|
limitations on our ability to borrow additional amounts for
expenses, capital expenditures, acquisitions, debt service requirements, execution of our strategy and other purposes and other disadvantages
compared to our competitors who have less debt.
|
As indicated in the accompanying
financial statements, at September 30, 2021, we had $25,000 in cash, deferred offering costs of $105,160 and our net tangible book
deficit was ($80,368).
Further, we expect to continue to incur significant
costs in the pursuit of our acquisition plans. We cannot assure you that our plans to raise capital or to consummate our initial business
combination will be successful.
Results of Operations and Known Trends or Future Events
We have neither engaged in any operations nor
generated any revenues to date. Our only activities since inception have been organizational activities and those necessary to prepare
for this offering. Following this offering, we will not generate any operating revenues until, at the earliest, the consummation of our
initial business combination. We will generate non-operating revenues in the form of interest income on cash and cash equivalents after
this offering. There has been no significant change in our financial position since the date of our audited financial statements. After
this offering, we expect to incur significantly increased expenses as a result of being a public company (for legal, financial reporting,
accounting and auditing compliance), as well as for expenses incurred in identifying and examining target businesses and completing our
initial business combination.
We are an emerging growth company as defined in
the JOBS Act. Section 107 of the JOBS Act provides that an “emerging growth company” can take advantage of the extended
transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards.
In other words, an “emerging growth company” can delay the adoption of certain accounting standards until those standards
would otherwise apply to private companies. We intend to take advantage of the benefits of this extended transition period.
Upon the issuance of a new or revised accounting
standard that applies to our financial statements and has a different effective date for public and private companies, we will disclose
the date on which adoption is required for non-emerging growth companies and the date on which we will adopt the recently-issued accounting
standard.
Liquidity and Capital Resources
At September 30, 2021,
we had $25,000 in cash and a working capital deficit of $80,368. We have incurred and expect to continue to incur significant costs in
pursuit of our financing and acquisition plans. Management’s plans to address this uncertainty through this offering are discussed
below. Our plans to raise capital or to consummate our initial business combination may not be successful.
Our
liquidity needs have been satisfied prior to the completion of this offering through a capital contribution from our sponsor of $25,000
and a loan to us of up to $300,000 by our sponsor under an unsecured promissory note. We estimate that the net proceeds from (i) the
sale of the units in this offering, after deducting offering expenses of approximately $540,000, underwriting commissions of $4,400,000
(or $5,060,000 if the underwriter’s overallotment option is exercised in full) (excluding deferred underwriting commissions of
$7,700,000 (or $8,855,000 if the underwriter’s over-allotment option is exercised in full)), and (ii) the sale of the placement
units for a purchase price of $8,900,000 (or $9,900,000 if the underwriter’s overallotment option is exercised in full), will be
$223,960,000, (or $257,300,000 if the underwriter’s over-allotment option is exercised in full). Of this amount, $222,200,000
(or $255,530,000 if the underwriter’s over-allotment option is exercised in full) will be held in the trust account, which includes
$7,700,000 (or $8,855,000 if the underwriter’s over-allotment option is exercised in full) of deferred underwriting commissions.
The remaining approximately $1,760,000 (or $1,770,000 if the underwriter exercises its overallotment option in full) will not be held
in the trust account. In the event that our offering expenses exceed our estimate of $540,000, we may fund such excess with funds not
to be held in the trust account. In such case, the amount of funds we intend to be held outside the trust account would decrease by a
corresponding amount. Conversely, in the event that the offering expenses are less than our estimate of $540,000, the amount of funds
we intend to be held outside the trust account would increase by a corresponding amount.
We intend to use
substantially all of the funds held in the trust account, including any amounts representing interest earned on the trust account
(less amounts released to us to pay taxes and deferred underwriting commissions), to consummate our initial business combination. We
may use interest earned on the trust account to pay our franchise and income taxes and up to $100,000 to pay dissolution expenses.
We estimate our annual franchise tax obligations, based on the number of shares of our common stock authorized and outstanding after
the completion of this offering to be approximately $200,000. Our annual income tax obligations will depend on the amount of
interest and other income earned on the amounts held in the trust account. To the extent that our capital stock or debt is used, in
whole or in part, as consideration to consummate our initial business combination, the remaining proceeds held in the trust account
will be used as working capital to finance the operations of the target business or businesses, make other acquisitions and pursue
our growth strategies.
Prior to the completion
of our initial business combination, we will have available to us the approximately $1,760,000 (or $1,770,000 if the underwriter exercises
its overallotment option in full) of proceeds held outside the trust account. We will use these funds primarily to identify and evaluate
target businesses, perform business due diligence on prospective target businesses, travel to and from the offices, plants or similar
locations of prospective target businesses or their representatives or owners, review corporate documents and material agreements of
prospective target businesses, and structure, negotiate and complete a business combination.
In order to fund working capital deficiencies
or finance transaction costs in connection with an intended initial business combination, our sponsor or an affiliate of our sponsor or
certain of our officers and directors may, but are not obligated to, loan us funds as may be required. If we complete our initial business
combination, we would repay such loaned amounts. In the event that our initial business combination does not close, we may use a portion
of the working capital held outside the trust account to repay such loaned amounts but no proceeds from our trust account would be used
for such repayment. Up to $2,000,000 of such loans may be convertible into units, at a price of $10.00 per unit at the option of the lender.
The units would be identical to the placement units. The terms of such loans, if any, have not been determined and no written agreements
exist with respect to such loans. We do not expect to seek loans from parties other than our sponsor or an affiliate of our sponsor as
we do not believe third parties will be willing to loan such funds and provide a waiver against any and all rights to seek access to funds
in our trust account.
We expect our primary liquidity requirements during
the period between the completion of this offering and the consummation of our initial business combination to include approximately $540,000
in expenses (assuming no exercise of the underwriter’s overallotment option), as described in more detailed under “Use of
Proceeds.” These amounts are estimates and may differ materially from our actual expenses. We may incur additional expenses in connection
with this offering over and above the amounts set forth in “Use of Proceeds.” In addition, we may use the net proceeds from
this offering and the private placement held outside of the trust and loans from our sponsor to pay commitment fees for financing, fees
to consultants to assist us with our search for a target business or as a down payment or to fund a “no-shop” provision (a
provision designed to keep target businesses from “shopping” around for transactions with other companies on terms more favorable
to such target businesses) with respect to a particular proposed business combination, although we do not have any current intention to
do so. If we entered into an agreement where we paid for the right to receive exclusivity from a target business, the amount that would
be used as a down payment or to fund a “no-shop” provision would be determined based on the terms of the specific business
combination and the amount of our available funds at the time. Our forfeiture of such funds (whether as a result of our breach or otherwise)
could result in our not having sufficient funds to continue searching for, or conducting due diligence with respect to, prospective target
businesses.
We do not believe we will need to raise additional
funds following this offering in order to meet the expenditures required to identify and acquire a target business. However, if our estimate
of the costs of undertaking due diligence investigations and negotiating an initial business combination is less than the actual amount
necessary to do so, we may have insufficient funds available to pursue and consummate our initial business combination. Moreover, we may
need to obtain additional financing if we become obligated to redeem a significant number of our public shares upon consummation of our
initial business combination, in which case we may issue additional securities or incur debt. Subject to compliance with applicable securities
laws, we would only obtain such financing simultaneously with the consummation of our initial business combination.
Controls and Procedures
The Sarbanes-Oxley Act requires that we maintain
a system of internal controls, and beginning with our annual report on Form 10-K for the fiscal year ending December 31, 2022,
that we evaluate and report on our system of internal controls. In addition, once we are no longer an “emerging growth company,”
we will be subject to the requirements under the Sarbanes-Oxley Act to have our system of internal controls audited. As of the date of
this prospectus, we have not completed an assessment, nor have our auditors tested our systems, of internal controls. We expect to assess
the internal controls of our target business or businesses prior to the consummation of our initial business combination and, if necessary,
to implement and test additional controls as we may determine are necessary in order to state that we maintain an effective system of
internal controls. A target business may not be in compliance with the provisions of the Sarbanes-Oxley Act regarding the adequacy of
internal controls. Many small and mid-sized target businesses we may consider for a business combination may have internal controls that
need improvement in areas such as:
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proper recording of expenses and liabilities in the period to
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documentation of accounting policies and procedures.
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Because it will take time, management involvement
and perhaps outside resources to determine what internal control improvements are necessary for us to meet regulatory requirements and
market expectations for our operation of a target business, we may incur significant expense in meeting our public reporting responsibilities,
particularly in the areas of designing, enhancing, or remediating internal and disclosure controls. Doing so effectively may also take
longer than we expect, thus increasing our exposure to financial fraud or erroneous financial reporting.
Once our management’s report on internal
controls is complete, we will retain our independent auditors to audit and render an opinion on such report when required by the Sarbanes-Oxley
Act. The independent auditors may identify additional issues concerning a target business’s internal controls while performing their
audit of internal control over financial reporting.
Quantitative and Qualitative Disclosures about Market Risk
The net proceeds of this offering and the private
placement, including amounts in the trust account, will be invested in United States government treasury bills with a maturity of
185 days or less or in money market funds investing solely in United States Treasuries and meeting certain conditions under
Rule 2a-7 under the Investment Company Act. Due to the short-term nature of these investments, we believe there will be no associated
material exposure to interest rate risk.
Related Party Transactions
On June 2, 2021,
Emerald ESG Sponsor, LLC purchased 7,992,750 founder shares for an aggregate purchase price of $25,000, and on October 14,
2021, we effected a 1.1014-for-1.0 stock split of our common stock, so that our sponsor owned an aggregate of 8,803,333 founder
shares. This number includes an aggregate of 1,140,000 founder shares that are subject to forfeiture to the extent that the
overallotment option is not exercised by the underwriter. On November 12, 2021, we effected a 0.9955-for-1.0 stock split of our
common stock, so that our sponsor owns an aggregate of 8,763,333 founder shares. This number includes up to 1,133,333 shares of
which are subject to forfeiture depending on the extent to which the underwriter’s overallotment option is exercised.
Our sponsor has agreed to loan us up to $300,000
to be used for a portion of the expenses of this offering. This loan is non-interest bearing, unsecured and is due at the earlier of March 30,
2022 or the closing of this offering. The loan will be repaid upon the closing of this offering out of the offering proceeds not held
in the trust account.
Commencing on the date that our securities are
first listed on the NASDAQ through the earlier of consummation of our initial business combination and our liquidation, we will pay our
sponsor or its designee a total of $30,000 per month for office space, administrative and shared personnel support services. Upon completion
of our initial business combination or our liquidation, we will cease paying these monthly fees.
Our sponsor has committed
to purchase an aggregate of 890,000 placement units (or 990,000 if the underwriter’s overallotment option is exercised in full),
each unit consisting of one share of Class A common stock and one-half of one warrant, each whole warrant exercisable to purchase
one shares of Class A common stock, for an aggregate purchase price of $8,900,000 (or $9,900,000 if the underwriter’s overallotment
option is exercised in full) in a private placement that will occur simultaneously with the completion of this offering.
Each whole placement warrant entitles the holder
to purchase one share of our common stock at $11.50 per share. The placement units, and their underlying common stock and warrants, are
subject to transfer restrictions. See “Principal Stockholders — Restrictions on Transfers of Founder Shares and Placement
Units.” Holders of placement units (and underlying securities) or their permitted transferees have the right to require us to register
the placement units for resale as described in “Principal Stockholders — Registration Rights.” We will bear the
costs and expenses of filing any such registration statements. The placement warrants will be non-redeemable so long as they are held
by our sponsor or its permitted transferees. The placement warrants may also be exercised by our sponsor or its permitted transferees,
for cash or on a cashless basis. Other than as stated above, the placement warrants have terms and provisions that are identical to those
of the warrants being sold as part of the units in this offering.
In addition, in order to finance transaction costs
in connection with an intended initial business combination, our sponsor or an affiliate of our sponsor or certain of our officers and
directors may, but are not obligated to, loan us funds as may be required. If we complete our initial business combination, we would repay
such loaned amounts. In the event that our initial business combination does not close, we may use a portion of the working capital held
outside the trust account to repay such loaned amounts but no proceeds from our trust account would be used for such repayment. Such loans
may be convertible into units, at a price of $10.00 per unit at the option of the lender. Up to $2,000,000 of such loans may be convertible
into units at a price of $10.00 per unit at the option of the lender at the time of the business combination. The units would be identical
to the placement units sold in the private placement. The terms of such loans, if any, have not been determined and no written agreements
exist with respect to such loans. We do not expect to seek loans from parties other than our sponsor or an affiliate of our sponsor as
we do not believe third parties will be willing to loan such funds and provide a waiver against any and all rights to seek access to funds
in our trust account.
Pursuant to a registration rights agreement we
will enter into with our initial stockholders and holders of placement units on or prior to the closing of this offering, we may be required
to register certain securities for sale under the Securities Act. These holders, and holders of warrants included in the units issued
upon conversion of working capital loans, if any, are entitled under the registration rights agreement to make up to three demands that
we register certain of our securities held by them for sale under the Securities Act and to have the securities covered thereby registered
for resale pursuant to Rule 415 under the Securities Act. In addition, these holders have the right to include their securities in
other registration statements filed by us. We will bear the costs and expenses of filing any such registration statements. See the section
of this prospectus entitled “Certain Relationships and Related Party Transactions.”
Off-Balance Sheet Arrangements; Commitments and Contractual Obligations;
Quarterly Results
As
of September 30, 2021, we did not have any off-balance sheet arrangements as defined in Item 303(a)(4)(ii) of
Regulation S-K and did not have any commitments or contractual obligations. No unaudited quarterly operating data is included in
this prospectus as we have conducted no operations to date.
JOBS Act
On April 5, 2012, the JOBS Act was signed
into law. The JOBS Act contains provisions that, among other things, relax certain reporting requirements for qualifying public companies.
We will qualify as an “emerging growth company” and under the JOBS Act will be allowed to comply with new or revised accounting
pronouncements based on the effective date for private (not publicly traded) companies. We are electing to delay the adoption of new or
revised accounting standards, and as a result, we may not comply with new or revised accounting standards on the relevant dates on which
adoption of such standards is required for non-emerging growth companies. As a result, our financial statements may not be comparable
to companies that comply with new or revised accounting pronouncements as of public company effective dates.
Additionally, we are in the process of evaluating
the benefits of relying on the other reduced reporting requirements provided by the JOBS Act. Subject to certain conditions set forth
in the JOBS Act, if, as an “emerging growth company”, we choose to rely on such exemptions we may not be required to, among
other things, (i) provide an auditor’s attestation report on our system of internal control over financial reporting pursuant
to Section 404 of the Sarbanes Oxley Act, (ii) provide all of the compensation disclosure that may be required of non-emerging
growth public companies under the Dodd-Frank Act, (iii) comply with any requirement that may be adopted by the PCAOB regarding mandatory
audit firm rotation or a supplement to the auditor’s report providing additional information about the audit and the financial statements
(auditor discussion and analysis), and (iv) disclose certain executive compensation related items such as the correlation between
executive compensation and performance and comparisons of the CEO’s compensation to median employee compensation. These exemptions
will apply for a period of five years following the completion of our initial public offering or until we are no longer an “emerging
growth company,” whichever is earlier.
PROPOSED BUSINESS
General
We are a newly formed blank check company that
will seek to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination
with one or more businesses or assets, which we refer to throughout this prospectus as our initial business combination. To date, our
efforts have been limited to organizational activities and activities relating to this offering. We have not identified any acquisition
target and we have not, nor has anyone on our behalf, initiated any discussions, directly or indirectly, with respect to identifying any
acquisition target. We have generated no revenues to date and we do not expect that we will generate operating revenues at the earliest
until we consummate our initial business combination.
We currently intend to concentrate our efforts
on identifying companies in the Target Sectors that power transformation and innovation. Our expertise lends itself well to pursuing platforms
related to the Target Sectors, but we are not required to complete our initial business combination with a business in these industries
and, as a result, we may pursue a business combination outside of these industries. We expect to pursue global businesses but may also
acquire a domestic company. We do not intend to acquire companies that have speculative business plans or are excessively leveraged.
We believe our management team has the skills
and experience to identify, evaluate and consummate a business combination and is positioned to assist businesses we acquire. However,
our management team’s network and investing and operating experience do not guarantee a successful initial business combination.
The members of our management team are not required to devote any significant amount of time to our business and are concurrently involved
with other businesses. There is no guarantee that our current officers and directors will continue in their respective roles, or in any
other role, after our initial business combination, and their expertise may only be of benefit to us until our initial business combination
is completed. Past performance by our management team is not a guarantee of success with respect to any business combination we may consummate.
Business Strategy
We will seek to capitalize on the significant
ESG experience and contacts of Betsy Z. Cohen, our Chairman of the Board, Mark Tercek, our Vice Chairman of the Board, Bracebridge H.
Young, Jr., our President and CEO, and Doug Listman, our Chief Financial Officer, and our board of directors, to identify, evaluate
and acquire a business with a core commitment to providing social, financial, and environmental value operating in sectors such as: clean/renewable
energy; water sustainability; agricultural technology; shared economy software; and next generation mobility (the “Target Sectors”),
although we may pursue a business combination outside of those sectors. If we elect to pursue an investment outside of those sectors,
our management’s expertise related to those sectors may not be directly applicable to its evaluation or operation, and the information
contained in this prospectus regarding that sector might not be relevant to an understanding of the business that we elect to acquire.
Our Chairman of the Board
Betsy
Z. Cohen, Chairman. Betsy Z. Cohen has served as Chairman of FTAC Emerald Acquisition Corp., formerly known as
Emerald ESG Acquisition Corp., since April 29, 2021. Since January 2021, she has served as Chairman of the board of directors of
FTAC Hera, since November 2020, she has served as Chairman of the board of directors of FinTech VI, since November 2020, she has
served as Chairman of the board of directors of FTAC Athena, and since June 2019, she has served as Chairman of the board of
directors of FinTech V. She previously served as a director of Metromile, Inc. (NASDAQ: MILE), the successor to INSU II. Ms. Cohen
served as Chairman of FTAC Olympus’s board of directors from November 2020 until June 2021, as Chairman of FinTech IV’s
board of directors from May 2019 until June 2021, as Chairman of FinTech III’s board of directors from March 2017 until
October 2020, and as Chairman of FinTech II’s board of directors from August 2016 until July 2018. She served as a director of
FinTech I and its successor, Card Connect Corp., a provider of payment processing solutions to merchants, from November 2013 until
May 2017, and previously served as Chairman of the board of directors of FinTech I from July 2014 through July 2016 and as FinTech
I’s Chief Executive Officer from July 2014 through August 2014. She served as Chief Executive Officer of Bancorp and its
wholly-owned subsidiary, Bancorp Bank, from September 2000 and Chairman of Bancorp Bank from November 2003, and resigned from these
positions upon her retirement in December 2014. She served as the Chairman of the Board of Trustees and as a trustee of RAIT
Financial Trust, a real estate investment trust, from its founding in August 1997, through her resignation as of December 31, 2010
and served as RAIT’s Chief Executive Officer from 1997 to 2006. Ms. Cohen served as a director of Hudson United Bancorp (a
bank holding company), the successor to JeffBanks, Inc., from December 1999 until July 2000 and as the Chairman of the Jefferson
Bank Division of Hudson United Bank (Hudson United Bancorp’s banking subsidiary) from December 1999 through March 2000. Before
the merger of JeffBanks, Inc. with Hudson United Bancorp in December 1999, Ms. Cohen was Chairman and Chief Executive Officer of
JeffBanks, Inc. from its inception in 1981 and also served as Chairman and Chief Executive Officer of each of its subsidiaries,
Jefferson Bank, which she founded in 1974, and Jefferson Bank New Jersey, which she founded in 1987. From 1985 until 1993, Ms. Cohen
was a director of First Union Corp. of Virginia (a bank holding company) and its predecessor, Dominion Bancshares, Inc. Ms. Cohen also served as a director of Aetna, Inc.
(NYSE: AET), an insurance company, from 1994 until May 2018. Our board has determined that Ms. Cohen’s extensive experience in
the financial services industry generally, and the financial technology industry in particular, as well as extensive experience in
operating financial services companies in a public company environment, qualifies her to serve as a member of our board of
directors.
Our Chairman’s Experience and Positions
with Other SPAC’s
Ms. Cohen has served as Chairman of the board
of directors for other SPAC’s, including, FinTech I, FinTech II, FinTech III, FinTech IV, FinTech V, and FinTech VI. Additionally,
Ms. Cohen has served as Chairman of the board of directors for FTAC Olympus, FTAC Athena, FTAC Hera, and Fintech Masala, LLC. We
believe that potential sellers of target businesses will view this experience as a positive factor in considering whether or not to enter
into a business combination with us and we believe the Ms. Cohen’s connections and experience will provide a strong pipeline
of potential acquisitions to our Company.
FinTech I
Ms. Cohen served as Chairman of the board
of directors of FinTech I, a former blank check company that raised $100.0 million in its initial public offering in February 2015
at an initial public offering price of $10.00 per share. On July 29, 2016, FinTech I completed its initial business combination when
it acquired FTS Holding Corporation, or FTS, a provider of payment processing solutions to merchants throughout the United States.
Under the terms of the acquisition, the stockholders
of FTS received $179.1 million in cash and 15,162,470 shares of FinTech I common stock. Outstanding options to purchase FTS
common stock were converted into options to purchase 3,463,950 shares of FinTech I common stock. The cash portion of the acquisition
consideration was financed through the issuance of $100.0 million of first lien debt, $40.0 million of second lien debt, the
issuance of 1.5 million shares of Series A preferred stock and 480,544 shares of common stock for an aggregate purchase
price of $37.5 million, and the issuance of 467,647 shares of common stock for a purchase price of $4.7 million. A portion
of the cash consideration was used to refinance the approximately $62 million in principal and interest outstanding at the acquisition
closing under FTS’s then existing revolving credit facility. Following the acquisition, the combined company had a substantial amount
of indebtedness, which consisted of an aggregate of $140.0 million outstanding under the new first and second lien credit facilities.
Following the acquisition, the former FTS stockholders
held approximately 54.6% of FinTech I common stock, while pre-acquisition FinTech I stockholders held approximately 43.6%, and the
equity investor held approximately 1.7%, of FinTech I common stock. Upon the closing of the acquisition, the pre-acquisition executive
officers of FinTech I resigned and were replaced by the executive officers of FTS and, the pre-acquisition directors of FinTech I
resigned, except for Ms. Cohen who continued as a director of the combined company, and were succeeded by directors designated pursuant
to the terms of the acquisition. No pre-acquisition executive officers or directors of FinTech I received any severance or other
payment or benefit in connection with their respective resignations, although they did retain founder shares issued to them for nominal
consideration in connection with the formation of FinTech I, representing approximately 5.8% of the combined company. FinTech I changed
its name to CardConnect Corp. at closing.
The common stock of CardConnect Corp. was traded
on the NASDAQ Global Market under the symbol “CCN” until CardConnect Corp. was acquired by First Data Corporation on July 6,
2017 for $15.00 per share in cash.
FinTech II
Ms. Cohen has served as Chairman of the board
of directors of FinTech II, a blank check company that raised $175.0 million in its initial public offering in January 2017
at an initial public offering price of $10.00 per share.
On December 19, 2017, FinTech II entered
into an Agreement and Plan of Merger (the “Merger Agreement”) by and among FinTech II, FinTech II Merger Sub Inc., a direct
wholly-owned subsidiary of FinTech II (“Merger Sub 1”), FinTech II Merger Sub 2 LLC, a direct wholly-owned subsidiary
of FinTech II (“Merger Sub 2” and together with Merger Sub 1, the “Merger Subs”), Intermex Holdings
II, Inc. (“Intermex”) and SPC Intermex Representative LLC (the “Representative”), which provides for
the acquisition of Intermex by FinTech II pursuant to the proposed merger of Merger Sub 1 with and into Intermex with Intermex continuing
as the initial surviving entity (the “First Merger”), immediately following which the initial surviving entity will be merged
(the “Second Merger,” and together with the First Merger, the “Merger”) with and into Merger Sub 2, with
Merger Sub 2 continuing as the surviving entity and a direct wholly owned subsidiary of FinTech II. The Merger was consummated on July 26,
2018 and the pre-acquisition executive officers and directors of FinTech II resigned. No pre-acquisition executive officers
or directors of FinTech II received any severance or other payment or benefit in connection with their respective resignations, although
they did retain founder shares issued to them for nominal consideration in connection with the formation of FinTech II.
The aggregate consideration paid in the Merger
consisted of (i) 17,477,682 shares of FinTech II common stock and (ii) $102.0 million in cash. In connection with
the closing of the Merger, FinTech II redeemed a total of 4,938,232 shares of its common stock at a redemption price of $10.086957
per share, resulting in a total payment to redeeming stockholders of approximately $49,811,733.84.
Immediately following the Merger, the former stockholders
of Intermex owned approximately 48.3% of FinTech II’s outstanding common stock, the former stockholders of FinTech II owned approximately
51.7% of FinTech II’s outstanding common stock (20.4% held by FinTech II’s initial stockholders). FinTech II changed its name
to International Money Express, Inc. at closing.
The common stock of International Money Express, Inc.
is currently traded on the NASDAQ Global Market under the symbol “IMXI.” Since January 1, 2021, the common stock of International
Money Express, Inc. has traded as high as $17.57 per share and as low as $13.85 per share.
FinTech III
Ms. Cohen has served as Chairman of the board
of directors of FinTech III, a blank check company that raised $345.0 million in its initial public offering in November 2018
at an initial public offering price of $10.00 per share.
On August 3, 2020, FinTech III entered into
an Agreement and Plan of Merger (the “Paya Merger Agreement”) by and among GTCR-Ultra Holdings, LLC (“Seller”),
GTCR Ultra-Holdings II, LLC (“Holdings”), FinTech Acquisition Corp. III Parent Corp. (“Parent”), FinTech
III, FinTech III Merger Sub Corp. (“Merger Sub”), GTCR/Ultra Blocker, Inc. (“Blocker”), and GTCR Fund XI/C
LP (“Blocker Seller”), which provided for, among other things, (a) Merger Sub to be merged with and into FinTech III
with FinTech III being the surviving corporation in the merger and a wholly owned subsidiary of Parent (the “Paya Merger”)
and (b) through a series of transactions, Seller and Blocker Seller to contribute to Parent all of the equity interests in Holdings
and Blocker in exchange for cash and shares of common stock of Parent (the “Contribution and Exchange” and together with the
Paya Merger and the other transactions contemplated by the Merger Agreement, the “Transactions”). The Transactions were consummated
on October 16, 2020 and the pre-acquisition executive officers and directors of FinTech III resigned. No pre-acquisition executive
officers or directors of FinTech III received any severance or other payment or benefit in connection with their respective resignations,
although they did retain founder shares issued to them for nominal consideration in connection with the formation of FinTech III.
The aggregate consideration paid in the Transactions
consisted of (i) $499.7 million in cash and 54.5 million shares of Parent’s common stock, and (ii) up to an
additional 14,000,000 shares of Parent’s common stock (the “Earnout Shares”), in the event that the closing sale
price of Parent’s common stock exceeds certain price thresholds for 20 out of any 30 consecutive trading days during the first five
years following the closing of the Transactions. The cash consideration was funded from the cash held in FinTech III’s trust account
(after permitted redemptions) and the proceeds of a private placement of FinTech Class A common stock, which closed immediately prior
to the Transactions.
In connection with the closing of the Transactions,
FinTech III redeemed a total of 5,696,643 shares of its Class A common stock at a redemption price of $10.22735046 per share,
resulting in a total payment to redeeming stockholders of $58,261,564.43.
Immediately following the Transactions, the former
stockholders of Holdings owned approximately 47.3% of Parent’s outstanding common stock and the former stockholders of FinTech III
(including the PIPE investors) owned approximately 52.7% of Parent’s outstanding common stock (8.4% held by FinTech III’s
initial stockholders). Parent changed its name to Paya Holdings Inc. at closing.
The shares of common stock and warrants of Paya
Holdings Inc. are currently traded on the NASDAQ Global Market under the symbols “PAYA” and “PAYAW,” respectively.
Since October 19, 2020, the common stock of Paya Holdings Inc. has traded as high as $15.00 per share and as low as $10.38 per share.
FinTech IV
Ms. Cohen has served as Chairman of the board
of directors of FinTech IV, a blank check company that raised $230 million in its initial public offering in September 2020
at an initial public offering price of $10.00 per share.
On December 29, 2020, FinTech IV entered
into a Business Combination Agreement (the “Business Combination Agreement”), by and among FinTech IV, FinTech Investor Holdings
IV, LLC, a Delaware limited liability company, Fintech Masala Advisors, LLC, a Delaware limited liability company, PWP Holdings LP, a
Delaware limited partnership (“PWP”), PWP GP LLC, a Delaware limited liability company and the general partner of PWP (“PWP
GP”), PWP Professional Partners LP, a Delaware limited partnership and a limited partner of PWP (“Professionals”), and
Perella Weinberg Partners LLC, a Delaware limited liability company and the general partner of Professionals (“Professionals GP”)
pursuant to which, among other things, FinTech IV will acquire interests in PWP, which will become jointly-owned by FinTech IV, Professionals,
and certain existing partners of PWP and following the Closing will serve as FinTech IV’s operating partnership as part of an umbrella
limited partnership C-corporation (Up-C) structure.
Pursuant to the Business Combination Agreement,
subject to certain conditions set forth therein, in connection with the closing of the transactions contemplated by the Business Combination
Agreement:
(i) FinTech IV will
acquire newly-issued common units of PWP in exchange for cash in an amount equal to the outstanding excess cash balances of FinTech
IV (including the proceeds from the PIPE equity financing that will close contemporaneously with the FinTech IV Business Combination)
as of Closing net of redemptions elected by FinTech IV’s public stockholders pursuant to their redemption rights, with the number
of such interests to be issued to be calculated based on the formula set forth in the Business Combination Agreement;
(ii) Professionals will
contribute the equity interests of PWP GP, the general partner of PWP, to FinTech IV;
(iii) FinTech IV will issue (A) to
Professionals, new shares of Class B-1 common stock, which will have 10 votes per share (for so long as Professionals or its
limited partners as of the Closing maintain ownership of at least 10% of the issued and outstanding Class A common units of PWP,
otherwise such Class B-1 common stock shall have one vote per share) and (B) to investor limited partners of PWP, new shares
of Class B-2 common stock, which will have one vote per share, with the number of shares of such common stock to be issued to
equal the number of common units of PWP that will be held by Professionals and such investor limited partners, respectively, following
the Closing; and
(iv) FinTech IV will repay certain
indebtedness of PWP, pay certain expenses, retain up to $10 million of cash on its balance sheet, and subject to the availability
of transaction proceeds, FinTech IV will first redeem certain limited partnership interests held by certain electing third party investor
limited partners of PWP and second redeem certain electing non-working limited partners of Professionals (collectively with the other
transactions contemplated by the Business Combination Agreement, the “FinTech IV Business Combination”).
The FinTech IV Business Combination was consummated
on June 24, 2021 and the pre-acquisition executive officers and directors of FinTech IV resigned. No pre-acquisition executive
officers or directors of FinTech IV received any severance or other payment or benefit in connection with their respective resignations,
although they did retain founder shares issued to them for nominal consideration in connection with the formation of FinTech IV.
FinTech V
Ms. Cohen has served as Chairman of the board
of directors of FinTech V, a blank check company that raised $250 million in its initial public offering in December 2020 at
an initial public offering price of $10.00 per share.
On March 16, 2021, FinTech V entered into
an Agreement and Plan of Merger (the “FTV Merger Agreement”) among eToro Group Ltd., a company organized under the laws of
the British Virgin Islands (“eToro”), Buttonwood Merger Sub Corp., a Delaware corporation and a direct, wholly-owned subsidiary
of eToro (“Merger Sub”), and FinTech V, which provides for, among other things, the merger of Merger Sub with and into FinTech
V (the “FTV Merger”), with FinTech V surviving as a wholly-owned subsidiary of eToro (the “Business Combination”).
At the closing of the Business Combination and the effective time of the FTV Merger (the “FTV Effective Time”), the stockholders
of FinTech V will receive certain of the common shares, no par value, of eToro (“eToro Common Shares”), and eToro will list
as a publicly traded company on Nasdaq and will continue to conduct the social trading platform business conducted by eToro prior to the
Business Combination.
The Business Combination contemplates an implied
enterprise valuation of eToro of approximately $9.6 billion at the time of the signing of the FTV Merger Agreement. Except with respect
to the Price Adjustment Rights (as defined below), no purchase price adjustments will be made in connection with the closing of the transactions
contemplated by the FTV Merger Agreement. Assuming no public shares are redeemed in connection with the Business Combination, immediately
following the FTV Effective Time, FinTech V’s public stockholders will own approximately 2.4% of the eToro Common Shares; the FinTech
V sponsor will own approximately 0.8% of the eToro Common Shares; the stockholders of eToro as of immediately prior to the Business Combination
(the “Legacy eToro Stockholders”) will own approximately 91% of the eToro Common Shares; and the PIPE investors will own approximately
6.2% of the eToro Common Shares. The pro forma ownership percentages described in the foregoing sentence exclude FinTech V’s public
warrants and the eToro Common Shares underlying the Price Adjustment Rights. All of the eToro Common Shares to be issued to the FinTech
V sponsor in the Business Combination will be subject to contractual restrictions on transfer and only released upon the occurrence of
certain time-based, stock-price performance or other events.
Immediately prior to the FTV Effective Time, subject
to the receipt of applicable approvals of eToro stockholders, (i) each outstanding preferred share of eToro (“eToro Preferred
Shares”) will be converted into eToro Common Shares in accordance with, and based on the applicable conversion ratio set forth in,
the memorandum and articles of association of eToro (the “Conversion”), (ii) immediately following the Conversion, all
outstanding eToro Common Shares, and all eToro Common Shares underlying vested options to acquire eToro Common Shares (“Vested Options”),
will be reclassified into (together, the “Reclassification”) (x) eToro Common Shares and (y) certain rights to receive,
without any further action required by the holders of such rights, in the aggregate, up to an additional 40,000,000 eToro Common Shares,
50% of which will automatically vest and be exercised if, at any time on or prior to the last day of the 30th month following the Closing
Date (as defined below), the stock price of the eToro Common Shares is greater than or equal to $15.00 over any 20 trading days within
any 30 trading day period, and 50% which will automatically vest and be exercised if, at any time on or prior to the last day of the 60th
month following the Closing Date, the stock price of the eToro Common Shares is greater than or equal to $17.50 over any 20 trading days
within any 30 trading day period, subject in either case to the earlier automatic vesting and exercise immediately prior to the occurrence
of a liquidation, merger, capital stock exchange, or other similar transaction that results in all of eToro’s stockholders having
the right to exchange their eToro Common Shares for cash, securities or other property (the “Price Adjustment Rights”), and
(iii) immediately following the Reclassification, eToro will effect a stock split of each then-outstanding eToro Common Share
and each eToro Common Share underlying any outstanding options to acquire eToro Common Shares, whether vested or unvested (“eToro
Options”), into such number of eToro Common Shares determined by multiplying such eToro Common Shares by a “Split Factor”
that is equal to the result of (A) $9,301,000,000 divided by (B) the total number of issued and outstanding eToro Common Shares,
plus the total number of eToro Common Shares underlying any outstanding eToro options to acquire eToro Common Shares, with the result
of such calculation divided by (C) $10.00, all as further described in and as calculated in accordance with the FTV Merger Agreement
(the “Stock Split” and, together with the Conversion and the Reclassification, the “Capital Restructuring”). As
part of the Business Combination and on the terms and subject to the conditions set forth in the FTV Merger Agreement, eToro may in its
discretion elect to commence a self-tender offer (“Self-Tender Offer”) to purchase up to $300,000,000 in eToro Common
Shares from the Legacy eToro Stockholders, such purchase in such Self-Tender Offer to be consummated, if elected, immediately prior
to the closing of the Business Combination.
At the FTV Effective Time, (i) each share
of FinTech V Class A common stock issued and outstanding immediately prior to the Effective Time (after giving effect to any redemptions
by FinTech V’s public stockholders), by virtue of the FTV Merger and upon the terms and subject to the conditions set forth in the
FTV Merger Agreement, will be converted into and will for all purposes represent only the right to receive one eToro Common Share (the
“Per Share Merger Consideration”), (ii) after giving effect to the Sponsor Forfeiture (as defined below), each share
of FinTech V Class B common stock issued and outstanding immediately prior to the FTV Effective Time, by virtue of the FTV Merger
and upon the terms and subject to the conditions set forth in the FTV Merger Agreement, will be converted into and will for all purposes
represent only the right to receive the Per Share Merger
Consideration (the aggregate number of eToro Common
Shares into which shares of FinTech V Class A common stock and FinTech V Class B common stock are converted into pursuant to
the FTV Merger Agreement, the “FTV Merger Consideration”) and (iii) all of the shares of FinTech V Class A common
stock and FinTech V Class B common stock converted into the right to receive the FTV Merger Consideration will no longer be outstanding
and will cease to exist, and each holder of any shares of FinTech V Class A common stock or FinTech V Class B common stock will
thereafter cease to have any rights with respect to such securities, except the right to receive the applicable portion of the FTV Merger
Consideration. The FTV Merger Consideration does not include any, or any rights to receive any consideration in respect of, the Price
Adjustment Rights.
After giving effect to the Sponsor Forfeiture,
FinTech V’s outstanding warrants to purchase one share of FinTech V Class A common stock shall be converted into the right
to receive an equal number of warrants to purchase one eToro Common Share (“eToro Warrants”).
Consummation of the transactions contemplated
by the FTV Merger Agreement is subject to customary mutual conditions of the respective parties. The FTV Merger Agreement may be terminated
at any time prior to the consummation of the Business Combination by mutual written consent of FinTech V and eToro and in certain other
limited circumstances, including if the closing of the transactions contemplated in the FTV Merger Agreement has not occurred by March 30,
2022. The FTV Merger Agreement has been approved by FinTech V’s board of directors, and the board has recommended that FinTech V’s
stockholders adopt the FTV Merger Agreement and approve the Business Combination.
FinTech VI
Ms. Cohen has served as Chairman of the board
of directors of FinTech VI, a blank check company that raised $250 million in its initial public offering in June 2021 at an
initial public offering price of $10.00 per share.
FTAC Olympus
Ms. Cohen has served as Chairman of the board
of directors of FTAC Olympus, a blank check company, that raised approximately $754.7 million in its initial public offering in August 2020
at an initial public offering price of $10.00 per share.
On February 3, 2021, FTAC Olympus entered
into an Agreement and Plan of Reorganization (the “Reorganization Agreement”) by and among FTAC Olympus, New Starship Parent
Inc., a Delaware corporation (“New Starship”), Starship Merger Sub I Inc., a Delaware corporation and a direct, wholly-owned subsidiary
of New Starship (“First Merger Sub”), Starship Merger Sub II Inc., a Delaware corporation and a direct, wholly-owned subsidiary
of New Starship (“Second Merger Sub” and, together with First Merger Sub, the “Merger Subs”) and Payoneer Inc.,
a Delaware corporation (“Payoneer”).
Pursuant to the Reorganization Agreement, (i) First
Merger Sub will merge with and into FTAC Olympus (the “FTOC Merger”), with FTAC Olympus surviving as a direct wholly owned
subsidiary of New Starship and (ii) immediately thereafter, Second Merger Sub will merge with and into Payoneer (the “Payoneer
Merger” and, together with the FTOC Merger, the “Mergers”) with Payoneer surviving as a direct wholly owned subsidiary
of New Starship (the transactions contemplated by the Reorganization Agreement, the “Reorganization”).
The cash component of the purchase price to be
paid to the equity holders of Payoneer is expected to be funded by FTAC Olympus’ cash in trust (minus any redemptions by FTAC Olympus’
existing public stockholders), as well as by a $300 million private placement. The balance of the consideration payable to the existing
Payoneer equity holders will consist of shares of common stock of New Starship. Existing Payoneer equity holders have the potential to
receive an earnout of up to 30 million additional shares of common stock of New Starship if certain stock price targets are met as
set forth in the Reorganization Agreement.
The Reorganization was consummated on June 25,
2021 and the pre-acquisition executive officers and directors of FTAC Olympus resigned. No pre-acquisition executive officers
or directors of FTAC Olympus received any severance or other payment or benefit in connection with their respective resignations, although
they did retain founder shares issued to them for nominal consideration in connection with the formation of FTAC Olympus.
FTAC Athena
Ms. Cohen has served as Chairman of the board
of directors of FTAC Athena, a blank check company that raised approximately $250 million in its initial public offering in August 2020
at an initial public offering price of $10.00 per share.
On
August 3, 2021, FTAC Athena entered into a Business Combination Agreement (the “Business Combination Agreement”)
by and between the Company and Pico Quantitative Trading Holdings LLC (“Pico”), pursuant to which, among other things,
FTAC Athena will acquire certain interests in Pico, which will become jointly owned by FTAC Athena and the existing members of Pico and
following the Closing (as defined below) will serve as FTAC Athena’s operating partnership as part of an Up-C structure (the transactions
contemplated by the Business Combination Agreement, the “Transactions”), as described in further detail below.
Pursuant
to the Business Combination Agreement, FTAC Athena will acquire 100% of the newly-created voting Class A common units of Pico
in exchange for FTAC Athena’s cash in trust as of Closing plus up to $200 million from a private placement (net of redemptions by
FTAC Athena’s existing stockholders). The Business Combination Agreement includes an outside closing date of February 28, 2022.
FTAC Hera
Ms. Cohen has served as Chairman of the board
of directors of FTAC Hera, a blank check company that raised approximately $851 million in its initial public offering in March 2021
at an initial public offering price of $10.00 per share.
Our Vice Chairman and President and CEO
Mark Tercek is Vice Chairman of our board of directors
and Bracebridge H. Young, Jr. is our President and CEO, and between the two of them they have substantial experience as investors
and operators in the ESG sector, as well broad array of experience in mergers and acquisitions and capital markets. We believe that potential
sellers of target businesses will view this experience as a positive factor in considering whether or not to enter into a business combination
with us and we believe the Mr. Tercek’s and Mr. Young’s connections in the ESG sector will provide a strong pipeline
of potential acquisitions to our Company.
Sponsor Partnership with Fintech Masala
Emerald ESG Sponsor, LLC is a partnership between
Fintech Masala, LLC (“Fintech Masala”) and our Vice Chairman of the Board, Mark Tercek and Bracebridge Young Jr, our
President and CEO. Additionally, our Chairman of the Board, Betsy Z. Cohen, is also the Chairman of the board of directors of Fintech
Masala. Emerald ESG Sponsor, LLC unites the knowledge and experience of Fintech Masala as a technology investor and SPAC sponsor with
the entrepreneurial and ESG experience of our Vice Chairman and President and CEO.
Fintech Masala
FinTech Masala specializes in providing growth
capital to technology and financial services technology companies via special purpose acquisition vehicles and venture investments. The
FinTech Masala team is comprised of principals and advisers with extensive experience in operating public and private companies in the
technology and financial services sectors, mergers and acquisitions and venture investors. As of July 2021, the Managing Members
of FinTech Masala have been affiliated with the sponsor for FinTech I, FinTech II, FinTech III, FinTech IV, FinTech V, FTAC Olympus, FTAC
Athena, FTAC Hera, FTAC Parnassus Acquisition Corp. and FinTech VI (together the “FinTech Masala SPACs”).
Of the FinTech Masala SPACs, five have consummated
initial business combinations (FinTech Acquisition Corp., FinTech Acquisition Corp. II, FinTech Acquisition Corp. III, FinTech Acquisition
Corp. IV and FTAC Olympus Acquisition Corp.) and two others have announced an agreement for initial business combinations that have yet
to close (FinTech Acquisition Corp. V and FTAC Athena Acquisition Corp.).
Several members of Fintech Masala’s management
team, including our Chairman, have served or are serving as executive officers and/or directors for the Fintech Masala SPACs. We believe
that potential sellers of target businesses will view the fact that members of our board of directors and management team have successfully
closed multiple business combinations with vehicles similar to our company as a positive factor in considering whether or not to enter
into a business combination with us. However, past performance is not a guarantee of success with respect to any business combination
we may consummate.
Mark
Tercek, Director Nominee (Vice Chairman). Mr. Tercek will serve as director
and Vice Chairman of the Board immediately upon the effective date of this prospectus. He is a global conservation leader and financial
professional with expertise in conservation finance, corporate sustainability, and cross-sector collaboration. From 2008 to 2019, Mark
served as CEO of The Nature Conservancy, the largest private conservation organization in the United States. Under Mr. Tercek’s
leadership, The Nature Conservancy launched NatureVest, the impact capital initiative, ran a $7 billion capital fundraising campaign,
and established a permanent department focused on gender, diversity, equity and inclusion (GDEI). Prior to serving as CEO of The Nature
Conservancy, Mr. Tercek served as Managing Director and Partner at Goldman Sachs, where over time he had responsibility for managing
several of the firm’s key units, including Corporate Finance, Real Estate Investment Banking, Equity Capital Markets, and Pine
Street, the firm’s leadership development program. In 2005, he was tapped to develop Goldman Sachs’s environmental strategy
and to lead its Environmental Markets Group. In addition, Mr. Tercek has advised on boards and councils for a number of global organizations,
including the Nicholas Institute for Environmental Policy Solutions at Duke University, the Social Enterprise Initiative at Harvard Business
School, the China Council for International Cooperation on Environment and Development, the Rockefeller Foundation Economic Council on
Planetary Health, Acumen, the AXA Stakeholders Advisory Panel, and Resources for the Future. From 2003 until 2008, Mr. Tercek was on
the finance faculty of New York University’s Stern School of Business. Since 2016, he has served on the Board of Trustees of Williams
College. He is the co-author of the Washington Post and Publisher’s Weekly bestselling book Nature’s Fortune: How Business
and Society Thrive by Investing in Nature. Mr. Tercek earned an M.B.A. from Harvard in 1984 and a B.A. from Williams College in 1979.
Bracebridge
H. Young, Jr., President and CEO. Mr. Young is President and Chief Executive Officer of Emerald ESG Acquisition
Corporation and also serves as Executive Chairman of Arabesque USA, a global asset management firm that specializes in integrating artificial
intelligence and sustainability research into its investment approach. In addition, Mr. Young serves as a member of the board of advisors
of Newmarket Investment Management. Prior to joining Arabesque USA in 2017, Mr. Young served as Chief Executive Officer at Eclat Impact
in 2016. From 2000 through 2015, Mr. Young served as Chief Executive Officer and Partner at Mariner Investment Group. He joined Mariner
directly from Goldman Sachs, where he began on the Commercial Paper trading desk in 1980 and subsequently served as Head Trader for institutional
money market funds, Co-Head of the Money Market Sales and Trading Department in New York, Head of Fixed-Income activity in Tokyo, Head
of Fixed-Income and foreign exchange sales in London, and, finally, Partner and Head of European Debt Capital Markets in New York. Mr.
Young serves as Chairman of the board of directors of Social Finance, Inc., a Boston-based nonprofit organization dedicated to mobilizing
investment capital to drive social change, serves on the boards of directors for Social Progress Imperative, a non-profit best known
for measuring countries’ social and environmental performance, Cultivo, the developer of an investment platform focused on environmental
ventures, and TerViva, an agricultural technology company. Additionally, he is an advisor to Upwell, technology-enabled water asset company.
Mr. Young received a B.A from Bowdoin College in 1977 and an M.B.A. from New York University’s Stern School of Business in 1983.
Douglas
Listman, CFO. Douglas Listman is our Chief Financial Officer, and has been the Chief Financial Officer of FinTech VI since
November 2020, the Chief Financial Officer of FinTech V since October 2020, the Chief Financial Officer of FinTech IV since
August 2020, the Chief Financial Officer of FTAC Olympus since August 2020, the Chief Financial Officer of FTAC Athena since
December 2020, and the Chief Financial Officer of FTAC Hera since January 2021. He has served as the Chief Accounting Officer
of Cohen & Company, Inc. since December 2009 and Chief Accounting Officer of Cohen & Company, LLC since 2006.
From 2004 to 2006, Mr. Listman served as an associate for Resources Global Professionals (a worldwide accounting services consulting
firm). From 1992 to 2003, Mr. Listman served in various accounting and finance positions including: senior accountant with KPMG;
Assistant Corporate Controller of Integrated Health Services (a publicly traded provider of skilled nursing services; NYSE: IHS); Controller
of Integrated Living Communities (a publicly traded provider of assisted living services; NASDAQ: ILCC); Chief Financial Officer of Senior
Lifestyles Corporation (a private owned provider of assisted living services); and Chief Financial Officer of Monarch Properties (a privately
owned health care facility real estate investment company). Mr. Listman is a Certified Public Accountant and graduated from the University
of Delaware with a B.S. in accounting.
We believe that potential sellers of target businesses
will view the fact that Ms. Cohen, Mr. Young, Mr. Tercek, and Mr. Listman have successfully closed multiple business
combinations with vehicles similar to our company as a positive factor in considering whether or not to enter into a business combination
with us. However, past performance is not a guarantee of success with respect to any business combination we may consummate.
Nasdaq rules require that we must complete
one or more business combinations having an aggregate fair market value of at least 80% of the value of the assets held in the trust account
(excluding the deferred underwriting commissions and taxes payable on the interest earned on the trust account) at the time of our signing
a definitive agreement in connection with our initial business combination. If the initial business combination involves more than one
target business, the 80% fair market value test will be based on the aggregate value of all of the transactions and we will treat the
target businesses together as the initial business combination for purposes of a tender offer or for seeking stockholder approval, as
applicable. Our board of directors will make the determination as to the fair market value of our initial business combination. If our
board of directors is not able to independently determine the fair market value of our initial business combination, we will obtain an
opinion from an independent investment banking firm or another independent entity that commonly renders valuation opinions with respect
to the satisfaction of such criteria. While we consider it unlikely that our board of directors will not be able to make an independent
determination of the fair market value of our initial business combination, it may be unable to do so if it is less familiar or experienced
with the business of a particular target or if there is a significant amount of uncertainty as to the value of a target’s assets
or prospects. Notwithstanding the foregoing, if we are not then listed on the Nasdaq for whatever reason, we would no longer be required
to meet the foregoing 80% fair market value test.
We anticipate structuring our initial business
combination either (i) in such a way so that the post-transaction company in which our public stockholders own shares will own or
acquire 100% of the equity interests or assets of the target business or businesses, or (ii) in such a way so that the post-transaction
company owns or acquires less than 100% of such interests or assets of the target business in order to meet certain objectives of the
target management team or stockholders, or for other reasons. However, we will only complete an initial business combination if the post-transaction
company owns or acquires 50% or more of the outstanding voting securities of the target or otherwise acquires a controlling interest in
the target sufficient for it not to be required to register as an investment company under the Investment Company Act of 1940, as amended,
or the “Investment Company Act”. Even if the post-transaction company owns or acquires 50% or more of the voting securities
of the target, our stockholders prior to the initial business combination may collectively own a minority interest in the post-transaction
company, depending on valuations ascribed to the target and us in the initial business combination. For example, we could pursue a transaction
in which we issue a substantial number of new shares in exchange for all of the outstanding capital stock of a target. In this case, we
would acquire a 100% controlling interest in the target. However, as a result of the issuance of a substantial number of new shares, our
stockholders immediately prior to our initial business combination could own less than a majority of our outstanding shares subsequent
to our initial business combination. If less than 100% of the equity interests or assets of a target business or businesses are owned
or acquired by the post-transaction company, the portion of such business or businesses that is owned or acquired is what will be taken
into account for purposes of Nasdaq’s 80% fair market value test. If the initial business combination involves more than one target
business, the 80% fair market value test will be based on the aggregate value of all of the transactions and we will treat the target
businesses together as the initial business combination for purposes of a tender offer or for seeking stockholder approval, as applicable.
In addition to any potential business candidates
we may identify on our own, we anticipate that other target business candidates will be brought to our attention from various unaffiliated
sources, including investment market participants, private equity funds and large business enterprises seeking to divest non-core assets
or divisions.
In evaluating a prospective target business, we
expect to conduct an extensive due diligence review which will encompass, as applicable and among other things, meetings with incumbent
management and employees, document reviews, interviews of customers and suppliers, inspection of facilities, and a review of financial
and other information about the target and its industry.
We are not prohibited from pursuing an initial
business combination with a company that is affiliated with our sponsor, officers or directors, nor are we prohibited from partnering,
submitting joint bids, or entering into any similar transaction with our sponsor, or an affiliate of our sponsor, in the pursuit of an
initial business combination. If we seek to complete an initial business combination with such a company or we partner with our sponsor,
or any of its affiliates in our pursuit of an initial business combination, we, or a committee of independent directors, will obtain an
opinion from an independent investment banking firm that is a member of FINRA or an independent accounting firm with respect to fair market
value that the business combination is fair to our stockholders from a financial point of view.
As more fully discussed in “Management —
Conflicts of Interest,” if any of our officers or directors becomes aware of a business combination opportunity that falls within
the line of business of any entity to which he or she has pre-existing fiduciary or contractual obligations, he or she may be required
to present such business combination opportunity to such entity prior to presenting such business combination opportunity to us. Certain
of our directors currently have relevant fiduciary duties or contractual obligations that may take priority over their duties to us. However,
our sponsor, officers and directors may participate in the formation of, or become an officer or director of, any other blank check company
prior to completion of our initial business combination. As a result, our sponsor, officers or directors could have conflicts of interest
in determining whether to present business combination opportunities to us or to any other blank check company with which they may become
involved. We do not believe that any potential conflicts would materially affect our ability to complete our initial business combination.
Effecting Our Initial Business Combination
General
We are not presently engaged in, and we will not
engage in, any operations following this offering until our initial business combination. We intend to effectuate our initial business
combination using cash from the proceeds of this offering and the private placement, our capital stock, debt or a combination of these
as the consideration to be paid in our initial business combination.
If we pay for our initial business combination
using stock or debt securities, or we do not use all of the funds released from the trust account for payment of the purchase price in
connection with our business combination or for redemptions of our Class A common stock, we may apply the balance of the cash released
to us from the trust account for general corporate purposes, including for maintenance or expansion of operations of acquired businesses,
the payment of principal or interest due on indebtedness incurred in consummating our initial business combination, to fund the purchase
of other companies or for working capital.
We have not identified any acquisition target
and we have not, nor has anyone on our behalf, initiated any discussions, with respect to identifying any acquisition target. From the
period prior to our formation through the date of this prospectus, there have been no communications or discussions between any of our
officers, directors or our sponsor and any of their contacts or relationships regarding a potential initial business combination. Additionally,
we have not engaged or retained any agent or other representative to identify or locate any suitable acquisition candidate, to conduct
any research or take any measures, directly or indirectly, to locate or contact a target business. Accordingly, there is no current basis
for investors in this offering to evaluate the possible merits or risks of the target business with which we may ultimately complete our
initial business combination. Although our management will assess the risks inherent in a particular target business with which we may
combine, we cannot assure you that this assessment will result in our identifying all risks that a target business may encounter. Furthermore,
some of those risks may be outside of our control, meaning that we can do nothing to control or reduce the chances that those risks will
adversely impact a target business.
Nasdaq rules require that our initial business
combination be with one or more target businesses that together have a fair market value equal to at least 80% of the balance in the trust
account (less any deferred underwriting commissions and taxes payable on interest earned) at the time of our signing a definitive agreement
in connection with our initial business combination. However, if our securities are not listed on Nasdaq or another securities exchange,
we will no longer be subject to that requirement.
We may seek to raise additional funds through
a private offering of debt or equity securities to finance our initial business combination, and we may effectuate an initial business
combination using the proceeds of such offering rather than using the amounts held in the trust account. Subject to compliance with applicable
securities laws, we would consummate such financing only simultaneously with the consummation of our initial business combination. In
the case of an initial business combination funded with assets other than the trust account assets, our tender offer documents or proxy
materials disclosing the initial business combination would disclose the terms of the financing and, only if required by law or Nasdaq,
we would seek stockholder approval of such financing. There are no prohibitions on our ability to raise funds privately or through loans
in connection with our initial business combination. At this time, we are not a party to any arrangement or understanding with any third
party with respect to raising any additional funds through the sale of securities or otherwise.
Our sponsor paid a nominal purchase price for
the founder shares and, as a result, is likely to earn a substantial profit on its investment in us upon disposition of its Class A
common stock even if the trading price of our Class A common stock declines after we complete our initial business combination. Our
sponsor may therefore be economically incentivized to complete an initial business combination with a riskier, weaker-performing or less-established
target business than would be the case if our sponsor had paid the same per share price for the founder shares as our public stockholders
paid for their public shares. See “Risk Factors — The nominal purchase price paid by our sponsor for the founder shares may
significantly dilute the implied value of your public shares in the event we complete an initial business combination. In addition, the
value of the sponsor’s founder shares will be significantly greater than the amount our sponsor paid to purchase such shares in
the event we complete an initial business combination, even if the business combination causes the trading price of our Class A common
stock to materially decline.”
Sources of Acquisition Candidates
We anticipate that target business candidates
will be brought to our attention from various unaffiliated sources, including investment bankers, attorneys, accountants, venture capital
funds, private equity funds, leveraged buyout funds, management buyout funds, brokers and other members of the financial community and
corporate executives. These target candidates may present solicited or unsolicited proposals. We expect such sources to become aware that
we are seeking a business combination candidate by a variety of means, including publicly available information relating to this offering,
public relations and marketing efforts or direct contact by management following the completion of this offering.
Our officers and directors, as well as their affiliates,
may also bring to our attention target business candidates of which they become aware through their contacts. While we do not presently
anticipate engaging the services of professional firms or other individuals that specialize in business acquisitions on any formal basis,
we may engage these firms or other individuals in the future, in which event we may pay a finder’s fee, consulting fee or other
compensation to be determined in an arm’s length negotiation based on the terms of the transaction. We will engage a finder only
if our management determines that the use of a finder may bring opportunities to us that may not otherwise be available to us or if finders
approach us on an unsolicited basis with a potential transaction that our management determines is in our best interest to pursue. Payment
of finder’s fees is customarily tied to completion of a transaction, in which case any such fee will be paid out of the funds held
in the trust account. In no event, however, will we pay our sponsor or any of our officers or directors, or any entity with which they
are affiliated, any finder’s fee, consulting fee or other compensation prior to, or for any services they render in order to effectuate,
the consummation of our initial business combination (regardless of the type of transaction that it is), other than (i) repayment
of loans made to us prior to the date of this prospectus by an affiliate of Emerald ESG Sponsor, LLC to cover offering-relating and organization
expenses, (ii) repayment of loans that our sponsor or one of its affiliates may make to finance transaction costs in connection with
an intended initial business combination (provided that if we do not consummate an initial business combination, we may use working capital
held outside the trust account to repay such loaned amounts, but no proceeds from our trust account would be used for such repayment),
(iii) payments to our sponsor or its designee of a total of $30,000 per month for office space, administrative and shared personnel
support services, (iv) payment of certain consulting fees to persons engaged by an entity affiliated with certain of our directors
and officers, (v) at the closing of our initial business combination, a customary advisory fee to affiliates of our sponsor, in an
amount that constitutes a market standard advisory fee for comparable transactions and services provided; and (vi) to reimburse our
sponsor, officers or directors for any out-of-pocket expenses related to identifying, investigating and completing an initial business
combination. None of the initial holders, our officers, our directors or any entity with which they are affiliated will be allowed to
receive any compensation, finder’s fees or consulting fees from a prospective acquisition target in connection with a contemplated
acquisition of such target by us. Although some of our officers and directors may enter into employment or consulting agreements with
the acquired business following our initial business combination, the presence or absence of any such arrangements will not be used as
a criterion in our selection process of an acquisition candidate.
We are not prohibited from pursuing an initial
business combination with a company that is affiliated with our sponsor, officers, directors or their affiliates. Additionally, we are
not prohibited from partnering, submitting joint bids, or entering into any similar transaction with such persons in the pursuit of an
initial business combination. If we seek to complete an initial business combination with such a company or we partner with such persons
in our pursuit of an initial business combination, we, or a committee of independent directors, would obtain an opinion from an independent
investment banking firm that is a member of FINRA or an independent accounting firm that such an initial business combination is fair
to our stockholders from a financial point of view. Generally, such opinion is rendered to a company’s board of directors and investment
banking firms may take the view that stockholders may not rely on the opinion. Such view will not impact our decision on which investment
banking firm to hire.
Unless we consummate our initial business combination
with an affiliated entity, we are not required to obtain a financial fairness opinion from an independent investment banking firm. If
we do not obtain such an opinion, our stockholders will be relying on the judgment of our board of directors, who will determine fair
market value and fairness based on standards generally accepted by the financial community. The application of such standards would involve
a comparison, from a valuation standpoint, of our business combination target to comparable public companies, as applicable, and a comparison
of our contemplated transaction with such business combination target to other then-recently announced comparable private and public company
transactions, as applicable. The application of such standards and the basis of our board of directors’ determination will be discussed
and disclosed in our tender offer or proxy solicitation materials, as applicable, related to our initial business combination. As more
fully discussed in the section of this prospectus entitled “Management — Conflicts of Interest,” if any of our
officers or directors becomes aware of an initial business combination opportunity that falls within the line of business of any entity
to which he or she has pre-existing fiduciary or contractual obligations, he or she may be required to present such business combination
opportunity to such entity prior to presenting such business combination opportunity to us. Our officers and directors currently have
certain relevant fiduciary duties or contractual obligations that may take priority over their duties to us.
Selection of a target business and structuring of our initial
business combination
Nasdaq rules require that we must complete
one or more business combinations having an aggregate fair market value of at least 80% of the value of the assets held in the trust account
(excluding the deferred underwriting commissions and taxes payable on the interest earned on the trust account) at the time of our signing
a definitive agreement in connection with our initial business combination. We refer to this as the 80% of fair market value test. The
fair market value of our initial business combination will be determined by our board of directors based upon one or more standards generally
accepted by the financial community, such as discounted cash flow valuation, a valuation based on trading multiples of comparable public
businesses or a valuation based on the financial metrics of M&A transactions of comparable businesses. Even though our board of directors
will rely on generally accepted standards, our board of directors will have discretion to select the standards employed. In addition,
the application of the standards generally involves a substantial degree of judgment. Accordingly, investors will be relying on the business
judgment of the board of directors in evaluating the fair market value of the target or targets. The proxy solicitation materials or tender
offer documents used by us in connection with any proposed transaction will provide public stockholders with our analysis of our satisfaction
of the 80% of fair market value test, as well as the basis for our determinations. If our board of directors is not able to independently
determine the fair market value of our initial business combination, we will obtain an opinion from an independent investment banking
firm or another independent entity that commonly renders valuation opinions with respect to the satisfaction of such criteria. While we
consider it unlikely that our board of directors will not be able to make an independent determination of the fair market value of our
initial business combination, it may be unable to do so if it is less familiar or experienced with the business of a particular target
or if there is a significant amount of uncertainty as to the value of a target’s assets or prospects. We do not intend to purchase
multiple businesses in unrelated industries in conjunction with our initial business combination. Subject to this requirement, our management
will have virtually unrestricted flexibility in identifying and selecting one or more prospective target businesses, although we will
not be permitted to effectuate our initial business combination with another blank check company or a similar company with nominal operations.
In any case, we will only complete an initial
business combination in which we own or acquire 50% or more of the outstanding voting securities of the target or otherwise acquire a
controlling interest in the target sufficient for it not to be required to register as an investment company under the Investment Company
Act. If we own or acquire less than 100% of the equity interests or assets of a target business or businesses, the portion of such business
or businesses that are owned or acquired by the post-transaction company is what will be taken into account for purposes of Nasdaq’s
80% fair market value test. There is no basis for investors in this offering to evaluate the possible merits or risks of any target business
with which we may ultimately complete our initial business combination.
To the extent we effect our initial business combination
with a company or business that may be financially unstable or in its early stages of development or growth we may be affected by numerous
risks inherent in such company or business. Although our management will endeavor to evaluate the risks inherent in a particular target
business, we cannot assure you that we will properly ascertain or assess all significant risk factors.
In evaluating a prospective business target, we
expect to conduct a thorough due diligence review, which may encompass, among other things, meetings with incumbent management and employees,
document reviews, interviews of customers and suppliers, inspection of facilities, as well as a review of financial and other information
that will be made available to us.
The time required to select and evaluate a target
business and to structure and complete our initial business combination, and the costs associated with this process, are not currently
ascertainable with any degree of certainty. Any costs incurred with respect to the identification and evaluation of a prospective target
business with which our initial business combination is not ultimately completed will result in our incurring losses and will reduce the
funds we can use to complete another business combination.
Lack of business diversification
For an indefinite period of time after consummation
of our initial business combination, the prospects for our success may depend entirely on the future performance of a single business.
Unlike other entities that have the resources to complete business combinations with multiple entities in one or several industries, it
is probable that we will not have the resources to diversify our operations and mitigate the risks of being in a single line of business.
In addition, we intend to focus our search for an initial business combination in a single industry. By consummating a business combination
with only a single entity, our lack of diversification may:
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subject us to negative economic, competitive and regulatory
developments, any or all of which may have a substantial adverse impact on the particular industry in which we operate after our initial
business combination, and
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cause us to depend on the marketing and sale of a single product
or limited number of products or services.
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Limited ability to evaluate the target’s management team
Although we intend to closely scrutinize the management
of a prospective target business when evaluating a target business, our assessment of the target business’ management may not prove
to be correct. In addition, the future management may not have the necessary skills, qualifications or abilities to manage a public company.
The future role of members of our management team, if any, in the target business cannot presently be stated with any certainty. While
it is possible that one or more of our directors will remain associated in some capacity with us following a business combination, it
is unlikely that any of them will devote their full efforts to our affairs subsequent to a business combination. Moreover, we cannot assure
you that members of our management team will have experience or knowledge relating to the operations of the particular target business.
We cannot assure you that any of our key personnel
will remain in senior management or advisory positions with the combined company. The determination as to whether any of our key personnel
will remain with the combined company will be made at the time of our initial business combination.
Following a business combination, we may seek
to recruit additional managers to supplement the incumbent management of the target business. We cannot assure you that we will have the
ability to recruit additional managers, or that additional managers will have the requisite skills, knowledge or experience necessary
to enhance the incumbent management.
Stockholders may not have the ability to approve a business combination
We may not seek stockholder approval before we
effect our initial business combination as not all business combinations require stockholder approval under applicable state law. However,
we will seek stockholder approval if it is required by law or Nasdaq, or we may decide to seek stockholder approval for business or other
reasons. Presented in the table below is a table of the types of initial business combinations we may consider and whether stockholder
approval is currently required under Delaware law for each such transaction.
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Type of Transaction
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Whether
Stockholder
Approval is
Required
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Purchase of assets
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No
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Purchase of stock of target not involving a merger with the company
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No
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Merger of target into a subsidiary of the company
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No
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Merger of the company with a target
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Yes
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So long as we obtain and maintain a listing for
our securities on Nasdaq, stockholder approval would be required for our initial business combination if, for example:
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we issue shares of Class A common stock that will be equal
to or in excess of 20% of the number of shares of our Class A common stock then outstanding (other than in a public offering);
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any of our directors, officers or substantial stockholders (as
defined by Nasdaq rules) has a 5% or greater interest (or such persons collectively have a 10% or greater interest), directly or indirectly,
in the target business or assets to be acquired or otherwise and the present or potential issuance of common stock could result in an
increase in outstanding common shares or voting power of 5% or more; or
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the issuance or potential issuance of common stock will result
in our undergoing a change of control.
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Permitted purchases of our securities
If we seek stockholder approval of our initial
business combination and we do not conduct redemptions in connection with our business combination pursuant to the tender offer rules,
our sponsor, directors, officers or their respective affiliates may purchase public securities in the open market or in privately negotiated
transactions either prior to or following the consummation of our initial business combination, although as of the date of this prospectus
(apart from the purchase of the placement units) they have no commitments, plans or intentions to engage in such transactions. If they
do effect such purchases, we anticipate that they would approach a limited number of large holders of our securities that have voted against
the business combination or sought redemption of their shares, or that have indicated an intention to do so, and engage in direct negotiations
for the purchase of such holders’ positions. All holders approached in this manner would be institutional or sophisticated holders.
There is no limit on the number of shares they may acquire. Our sponsor, directors, officers, advisors or their affiliates will not make
any such purchases when they are in possession of any material nonpublic information not disclosed to the seller or during a restricted
period under Regulation M under the Exchange Act or in transactions that would violate Section 9(a)(2) or Rule 10(b)-5
under the Exchange Act. Although they do not currently anticipate paying any premium purchase price for such public shares, there is no
limit on the price they may pay. They may also enter into transactions to provide such holders with incentives to acquire shares or vote
their shares in favor of an initial business combination. No funds in the trust account may be used to effect purchases of public securities
in the open market or in privately negotiated transactions.
The purpose of such purchases of public shares
would be to (i) increase the likelihood of obtaining stockholder approval of the business combination or (ii) to satisfy a closing
condition in an agreement with a target that requires us to have a minimum net worth or a certain amount of cash at the closing of the
business combination, where it appears that such requirement would otherwise not be met. The purpose of any such purchases of public warrants
could be to reduce the number of public warrants outstanding or to vote such warrants on any matters submitted to the warrantholders for
approval in connection with our initial business combination. This may result in the consummation of a business combination that may not
otherwise have been possible.
As a consequence of any such purchases by our
initial holders, directors, officers or their affiliates, the public “float” of our common stock may be reduced and the number
of beneficial holders of our securities may be reduced, which may make it difficult to obtain the continued listing of our securities
on Nasdaq or another national securities exchange in connection with our initial business combination.
Our initial holders, officers, directors and/or
their respective affiliates anticipate that they will identify the public stockholders with whom they may pursue privately negotiated
purchases through either direct contact by the public stockholders or by our receipt of redemption requests or votes against the business
combination submitted by such public stockholders following our mailing of proxy materials in connection with our initial business combination.
The sellers of any shares so purchased by our initial holders, officers, advisors, directors and/or their affiliates would, as part of
the sale arrangement, revoke their election to redeem such shares and withdraw their vote against the business combination. The terms
of such purchases would operate to facilitate our ability to consummate a proposed business combination by potentially reducing the number
of shares redeemed for cash.
Any purchases by our sponsor, officers, directors
and/or their affiliates who are affiliated purchasers under Rule 10b-18 under the Exchange Act will only be made to the extent such
purchases are able to be made in compliance with Rule 10b-18, which is a safe harbor from liability for manipulation under Section 9(a)(2) and
Rule 10b-5 of the Exchange Act. Rule 10b-18 has certain technical requirements that must be complied with in order for the safe
harbor to be available to the purchaser. Any such purchases will be reported pursuant to Section 13 and Section 16 of the Exchange
Act to the extent such purchases are subject to such reporting requirements.
Redemption rights for public stockholders upon consummation of
our initial business combination
We will provide our public
stockholders with the opportunity to redeem all or a portion of their shares of Class A common stock upon the consummation of our
initial business combination at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the trust account
as of two business days prior to the consummation of our initial business combination, including any amounts representing deferred underwriting
commissions and interest earned on the trust account (net of taxes payable), divided by the number of then outstanding public shares,
subject to the limitations described herein. The amount in the trust account initially will be $10.10 per public share. The per share
amount we will distribute to investors who properly redeem their shares will not be reduced by the deferred underwriting commissions
we will pay to the underwriter. Our initial stockholders, officers and directors have entered into a letter agreement with us, pursuant
to which they have agreed to waive their redemption rights with respect to any founder shares and public shares they may hold in connection
with the completion of our initial business combination.
Manner of Conducting Redemptions
We will provide our public stockholders with the
opportunity to redeem all or a portion of their public shares upon the completion of our initial business combination either in connection
with a stockholder meeting called to approve the business combination or by means of a tender offer. The decision as to whether we will
seek stockholder approval of a proposed business combination or conduct a tender offer will be made by us, solely in our discretion, and
will be based on a variety of factors such as the timing of the transaction and whether the terms of the transaction would require us
to seek stockholder approval under the law or stock exchange listing requirement.
We currently intend to conduct redemptions pursuant
to a stockholder vote unless stockholder approval is not required by applicable law or stock exchange listing requirement and we choose
to conduct redemptions pursuant to the tender offer rules of the SEC for business or other reasons.
If a stockholder vote is not required and we do
not decide to hold a stockholder vote for business or other legal reasons, we will, pursuant to our amended and restated certificate of
incorporation:
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conduct the redemptions pursuant to Rule 13e-4 and Regulation
14E of the Exchange Act, which regulate issuer tender offers, and any limitations (including but not limited to cash requirements) agreed
to in connection with the negotiation of terms of the proposed business combination, and
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file tender offer documents with the SEC prior to consummating
our initial business combination that will contain substantially the same financial and other information about the initial business
combination and the redemption rights as is required under Regulation 14A of the Exchange Act, which regulates the solicitation of proxies.
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Upon the public announcement of our initial business
combination, if we elect to conduct redemptions pursuant to the tender offer rules, we and our sponsor will terminate any plan established
in accordance with Rule 10b5-1 to purchase shares of our Class A common stock in the open market, in order to comply with Rule 14e-5
under the Exchange Act.
In the event we conduct redemptions pursuant to
the tender offer rules, our offer to redeem will remain open for at least 20 business days, in accordance with Rule 14e-1(a) under
the Exchange Act, and we will not be permitted to complete our initial business combination until the expiration of the tender offer period.
In addition, the tender offer will be conditioned on public stockholders not tendering more than a specified number of public shares,
which number will be based on the requirement that we may not redeem public shares in an amount that would cause our net tangible assets,
after payment of the deferred underwriting commissions, to be less than $5,000,001 (so that we do not then become subject to the SEC’s
“penny stock” rules), or any greater net tangible asset or cash requirement which may be contained in the agreement relating
to our initial business combination. If public stockholders tender more shares than we have offered to purchase, we will withdraw the
tender offer and not complete such initial business combination.
If, however, stockholder approval of the transaction
is required by law or Nasdaq, or we decide to obtain stockholder approval for business or other reasons, we will:
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conduct the redemptions in conjunction with a proxy solicitation
pursuant to Regulation 14A of the Exchange Act, which regulates the solicitation of proxies, and not pursuant to the tender offer rules,
and
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file proxy materials with the SEC.
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We expect that a final proxy statement would be
mailed to public stockholders at least 10 days prior to the stockholder vote. However, we expect that a draft proxy statement would
be made available to such stockholders well in advance of such time, providing additional notice of redemption if we conduct redemptions
in conjunction with a proxy solicitation. Although we are not required to do so, we currently intend to comply with the substantive and
procedural requirements of Regulation 14A in connection with any stockholder vote even if we are not able to maintain our Nasdaq listing
or Exchange Act registration.
If we seek stockholder
approval, we will complete our initial business combination only if a majority of the outstanding shares of common stock voted are voted
in favor of the initial business combination. A quorum for such meeting will consist of the holders present in person or by proxy of
shares of outstanding capital stock of the company representing a majority of the voting power of all outstanding shares of capital stock
of the company entitled to vote at such meeting. Our initial stockholders, officers and directors will count towards this quorum and
have agreed to vote any founder shares, placement shares and any public shares held by them in favor of our initial business combination.
We expect that at the time of any stockholder vote relating to our initial business combination, our initial stockholders and their permitted
transferees will own at least 27.9% of our outstanding shares of common stock entitled to vote thereon. As a result, in addition to our
initial stockholders’ founder shares and placement shares, we would need 6,740,001, or 30.6%, of the 22,000,000 public shares sold
in this offering to be voted in favor of a transaction (assuming all issued and outstanding shares are voted and the overallotment option
is not exercised) in order to have such initial business combination approved. These quorum and voting thresholds and agreements may
make it more likely that we will consummate our initial business combination. Each public stockholder may elect to redeem its public
shares without voting, and if they do vote, irrespective of whether they vote for or against the proposed transaction.
Our amended and restated certificate of incorporation
will provide that in no event will we redeem our public shares in an amount that would cause our net tangible assets to be less than $5,000,001
upon consummation of our initial business combination after payment of deferred underwriting commissions (so that we are not then subject
to the SEC’s “penny stock” rules), and, in any event, the terms of the proposed business combination may require our
net tangible assets to be greater than $5,000,001. For example, the proposed business combination may require: (i) cash consideration
to be paid to the target or members of its management team, (ii) cash to be transferred to the target for working capital or other
general corporate purposes or (iii) the allocation of cash to satisfy other conditions in accordance with the terms of the proposed
business combination. If the aggregate cash consideration we would be required to pay for all shares of Class A common stock that
are validly tendered plus the amount of any cash payments required pursuant to the terms of the proposed business combination exceeds
the aggregate amount of cash available to us, taking into consideration the requirement that we maintain net tangible assets of at least
$5,000,001 or such greater amount depending on the terms of our potential business combination, we will not consummate the business combination
and any shares of Class A common stock tendered pursuant to the tender offer will be returned to the holders thereof following the
expiration of the tender offer.
Limitation on redemption upon consummation of a business combination
if we seek stockholder approval
Notwithstanding the foregoing redemption rights,
if we seek stockholder approval of our initial business combination and we do not conduct redemptions in connection with our initial business
combination pursuant to the tender offer rules, our amended and restated certificate of incorporation provides that a public stockholder,
together with any affiliate of such stockholder or any other person with whom such stockholder is acting in concert or as a “group”
(as defined under Section 13 of the Exchange Act), will be restricted from redeeming its shares with respect to an aggregate of more
than 15.0% of the shares sold in this offering without our prior consent. We believe the restriction described above will discourage stockholders
from accumulating large blocks of shares and subsequent attempts by such holders to use their ability to redeem their shares as a means
to force us or our sponsor or its affiliates to purchase their shares at a significant premium to the then-current market price or on
other undesirable terms. Absent this provision, a public stockholder holding more than an aggregate of 15.0% of the shares sold in this
offering could threaten to exercise its redemption rights against a business combination if such holder’s shares are not purchased
by us or our sponsor or its affiliates at a premium to the then-current market price or on other undesirable terms. By limiting our stockholders’
ability to redeem to no more than 15.0% of the shares sold in this offering, we believe we will limit the ability of a small group of
stockholders to unreasonably attempt to block our ability to complete our initial business combination, particularly in connection with
a business combination with a target that requires as a closing condition that we have a minimum net worth or a certain amount of cash.
However, we would not be restricting our stockholders’ ability to vote all of their shares (including all shares held by those stockholders
that hold more than 15.0% of the shares sold in this offering) for or against our initial business combination.
Tendering stock certificates in connection with redemption rights
We may require our public stockholders seeking
to exercise their redemption rights, whether they are record holders or hold their shares in “street name,” to either tender
their certificates to our transfer agent prior to the date set forth in the tender offer documents mailed to such holders, or up to two
business days prior to the vote on the proposal to approve our initial business combination in the event we distribute proxy materials,
or to deliver their shares to the transfer agent electronically using The Depository Trust Company’s DWAC (Deposit/Withdrawal At
Custodian) System, at the holder’s option, rather than simply voting against the initial business combination. The tender offer
or proxy materials, as applicable, that we will furnish to holders of our public shares in connection with our initial business combination
will indicate whether we are requiring public stockholders to satisfy such delivery requirements, which will include the requirement that
any beneficial owner on whose behalf a redemption right is being exercised must identify itself in order to validly redeem its shares.
Accordingly, a public stockholder would have from the time we send out our tender offer materials until the close of the tender offer
period, or up to two business days prior to the vote on the initial business combination if we distribute proxy materials, as applicable,
to tender its shares if it wishes to seek to exercise its redemption rights. Given the relatively short exercise period, it is advisable
for stockholders to use electronic delivery of their public shares.
There is a nominal cost associated with the above-referenced
tendering process and the act of certificating the shares or delivering them through the DWAC System. The transfer agent will typically
charge the tendering broker $100.00 and it would be up to the broker whether or not to pass this cost on to the redeeming holder. However,
this fee would be incurred regardless of whether or not we require holders seeking to exercise redemption rights to tender their shares.
The need to deliver shares is a requirement of exercising redemption rights regardless of the timing of when such delivery must be effectuated.
The foregoing is different from the procedures
used by many blank check companies. In order to perfect redemption rights in connection with their business combinations, many blank check
companies would distribute proxy materials for the stockholders’ vote on an initial business combination, and a holder could simply
vote against a proposed initial business combination and check a box on the proxy card indicating such holder was seeking to exercise
his redemption rights. After the initial business combination was approved, the company would contact such stockholder to arrange for
him to deliver his certificate to verify ownership. As a result, the stockholder then had an “option window” after the consummation
of the business combination during which he could monitor the price of the company’s stock in the market. If the price rose above
the redemption price, he could sell his shares in the open market before actually delivering his shares to the company for cancellation.
As a result, the redemption rights, to which stockholders were aware they needed to commit before the stockholder meeting, would become
“option” rights surviving past the consummation of the initial business combination until the redeeming holder delivered its
certificate. The requirement for physical or electronic delivery prior to the meeting ensures that a redeeming holder’s election
to redeem is irrevocable once the business combination is approved.
Any request to redeem such shares, once made,
may be withdrawn at any time up to the date set forth in the tender offer materials or the date of the stockholder meeting set forth in
our proxy materials, as applicable. Furthermore, if a holder of a public share delivers its certificate in connection with an election
of redemption rights and subsequently decides prior to the applicable date not to elect to exercise such rights, such holder may simply
request that the transfer agent return the certificate (physically or electronically). It is anticipated that the funds to be distributed
to holders of our public shares electing to redeem their shares will be distributed promptly after the completion of an initial business
combination.
If the initial business combination is not approved
or completed for any reason, then our public stockholders who elected to exercise their redemption rights would not be entitled to redeem
their shares for the applicable pro rata share of the trust account. In such case, we will promptly return any certificates delivered
by public holders who elected to redeem their shares.
If our proposed initial
business combination is not consummated, we may continue to try to consummate a business combination with a different target until 18
months from the completion of this offering, or 21 months from the closing of this offering if we have executed a letter of intent, agreement
in principle or definitive agreement for our initial business combination within 18 months from the closing of.
Redemption of public shares and liquidation if no initial business
combination
Our amended and restated
certificate of incorporation provides that we will have only 18 months from the completion of this offering to consummate our initial
business combination. However, if we anticipate that we may not be able to consummate our initial business combination within 18 months,
we may, by resolution of our board of directors if requested by our sponsor, extend the period of time we have to consummate an initial
business combination by an additional 3 months (for a total of up to 21 months from the closing of this offering). If we are unable to
consummate our initial business combination within the 18 month period, which is extendable at our sponsor’s option to up to 21
months as described herein, we will distribute the aggregate amount then on deposit in the trust account, pro rata to our public stockholders
by way of redemption and cease all operations except for the purposes of winding up our affairs. If we have not consummated a business
combination within 18 months from the completion of this offering, or 21 months from the closing of this offering if we have executed
a letter of intent, agreement in principle or definitive agreement for our initial business combination within 18 months from the closing
of, we will: (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but not
more than ten business days thereafter, redeem all public shares then outstanding at a per-share price, payable in cash, equal to the
aggregate amount then on deposit in the trust account, including any amounts representing interest earned on the trust account (net of
taxes payable) and up to $100,000 to pay dissolution expenses, divided by the number of then outstanding public shares, which redemption
will completely extinguish public stockholders’ rights as stockholders (including the right to receive further liquidation distributions,
if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval
of our remaining stockholders and our board of directors, dissolve and liquidate, subject in each case to our obligations under Delaware
law to provide for claims of creditors and the requirements of other applicable law. There will be no redemption rights or liquidating
distributions with respect to our warrants, which will expire worthless if we fail to complete our initial business combination within
such completion window.
The initial holders,
our officers and directors have agreed to waive their redemption rights with respect to their founder shares and placement shares, as
applicable, (i) in connection with the consummation of a business combination, (ii) in connection with a stockholder vote to
approve an amendment to our amended and restated certificate of incorporation (A) to modify the substance or timing of our obligation
to provide for the redemption of our public shares in connection with an initial business combination or to redeem 100% of our public
shares if we have not consummated our initial business combination within 18 months from the closing of this offering, or 21 months
from the closing of this offering if we have executed a letter of intent, agreement in principle or definitive agreement for our initial
business combination within 18 months from the closing of this offering but have not completed our initial business combination
within such 18-month period, or (B) with respect to any other provision relating to stockholders’ rights or pre-initial
business combination activity and (iii) if we fail to consummate a business combination within 18 months from the completion of
this offering, or 21 months from the closing of this offering if we have executed a letter of intent, agreement in principle or definitive
agreement for our initial business combination within 18 months from the closing of, or if we liquidate prior to the expiration of the
18 month period (or 21 month period if extended at the option of our sponsor as described herein). However, the initial holders and our
officers and directors will be entitled to redemption rights with respect to any public shares held by them if we fail to consummate
a business combination within the 18 month period (or 21 month period if extended at the option of our sponsor as described herein).
The underwriter has agreed to waive their rights
to deferred underwriting commissions held in the trust account if we do not consummate a business combination and subsequently liquidate
and, in such event, the deferred underwriting commissions held in the trust account will be available to fund the redemption of our public
shares.
Our initial stockholders,
executive officers and directors have agreed, pursuant to a written agreement with us, that they will not propose any amendment to our
amended and restated certificate of incorporation that would affect the substance or timing of our obligation to redeem 100% of our public
shares if we do not complete our initial business combination within 18 months from the completion of this offering, or 21 months from
the closing of this offering if we have executed a letter of intent, agreement in principle or definitive agreement for our initial business
combination within 18 months from the closing of, unless we provide our public stockholders with the opportunity to redeem their shares
of Class A common stock upon approval of any such amendment at a per-share price, payable in cash, equal to the aggregate amount
then on deposit in the trust account, including interest earned on the funds held in the trust account (net of taxes payable), divided
by the number of then outstanding public shares. However, we may not redeem our public shares in an amount that would cause our net tangible
assets to be less than $5,000,001 (so that we are not subject to the SEC’s “penny stock” rules). If this optional redemption
right is exercised with respect to an excessive number of public shares such that we cannot satisfy the net tangible asset requirement
(described above), we would not proceed with the amendment or the related redemption of our public shares at such time.
We will pay the costs of any liquidation from
the net proceeds from this offering and the private placement held outside of the trust, and up to $100,000 of the interest income on
the trust account (net of any taxes payable), and the balance of loans from our sponsor or one of its affiliates for working capital purposes
and to pay expenses to identify an acquisition target and consummate an initial business combination, although we cannot assure you that
there will be sufficient funds for such purposes.
If we were to expend
all of the net proceeds of this offering and the private placement, other than the proceeds deposited in the trust account, and without
taking into account interest, if any, earned on the trust account, the per-share redemption amount received by stockholders upon our
dissolution would be approximately $10.10. The proceeds deposited in the trust account could, however, become subject to the claims of
our creditors which would have higher priority than the claims of our public stockholders. We cannot assure you that the actual per-share
redemption amount received by stockholders will not be less than the $10.10 per public share initially on deposit in the trust account.
Under Section 281(b) of the DGCL, our plan of dissolution must provide for all claims against us to be paid in full or make
provision for payments to be made in full, as applicable, if there are sufficient assets. These claims must be paid or provided for before
we make any distribution of our remaining assets to our stockholders. While we intend to pay such amounts, if any, we cannot assure you
that we will have funds sufficient to pay or provide for all creditors’ claims.
Although we will seek
to have all vendors, service providers, prospective target businesses or other entities with which we do business execute agreements
with us waiving any right, title, interest or claim of any kind in or to any monies held in the trust account for the benefit of our
public stockholders, there is no guarantee that they will execute such agreements or even if they execute such agreements that they would
be prevented from bringing claims against the trust account including but not limited to fraudulent inducement, breach of fiduciary responsibility
or other similar claims, as well as claims challenging the enforceability of the waiver, in each case in order to gain an advantage with
respect to a claim against our assets, including the funds held in the trust account. If any third party refuses to execute an agreement
waiving such claims to the monies held in the trust account, our management will perform an analysis of the alternatives available to
it and will only enter into an agreement with a third party that has not executed a waiver if management believes that such third party’s
engagement would be significantly more beneficial to us than any alternative. If we do not obtain a waiver from a third party, we will
obtain the written consent of our sponsor before our entering into an agreement with such third party. Examples of possible instances
where we may engage a third party that refuses to execute a waiver include the engagement of a third party consultant whose particular
expertise or skills are believed by management to be significantly superior to those of other consultants that would agree to execute
a waiver or in cases where management is unable to find a service provider willing to execute a waiver and where our sponsor executes
a written consent. In addition, there is no guarantee that such entities will agree to waive any claims they may have in the future as
a result of, or arising out of, any negotiations, contracts or agreements with us and will not seek recourse against the trust account
for any reason. In order to protect the amounts held in the trust account, pursuant to a written agreement, Emerald ESG Sponsor, LLC,
has agreed that it will be liable to us if and to the extent any claims by a third party for services rendered or products sold to us,
or a prospective target business with which we have discussed entering into a definitive transaction agreement, reduce the amounts in
the trust account to below $10.10 per share, except as to any claims by a third party who executed a waiver of rights to seek access
to the trust account and except as to any claims under our indemnity of the underwriter of this offering against certain liabilities,
including liabilities under the Securities Act. In the event that an executed waiver is deemed to be unenforceable against a third party,
Emerald ESG Sponsor, LLC will not be responsible to the extent of any liability for such third party claims. We cannot assure you, however,
that Emerald ESG Sponsor, LLC will be able to satisfy those obligations. We have not independently verified whether Emerald ESG Sponsor,
LLC has sufficient funds to satisfy its indemnity obligations, we have not asked it to reserve for such obligations and we believe that
its only assets are securities of our company. Therefore, we cannot assure you that Emerald ESG Sponsor, LLC will be able to satisfy
those obligations. We believe the likelihood of Emerald ESG Sponsor, LLC having to indemnify the trust account is limited because we
will endeavor to have all third parties that provide products or services to us and prospective target businesses execute agreements
with us waiving any right, title, interest or claim of any kind in or to monies held in the trust account.
If the proceeds in the
trust account are reduced below $10.10 per public share and Emerald ESG Sponsor, LLC asserts that it is unable to satisfy any applicable
obligations or that it has no indemnification obligations related to a particular claim, our independent directors would determine whether
to take legal action against Emerald ESG Sponsor, LLC to enforce its indemnification obligations. While we currently expect that our
independent directors would take legal action on our behalf against Emerald ESG Sponsor, LLC to enforce its indemnification obligations
to us, it is possible that our independent directors in exercising their business judgment may choose not to do so in a particular instance.
Accordingly, we cannot assure you that due to claims of creditors the actual value of the per-share redemption price will not be less
than $10.10 per public share.
We will have access to up to approximately $2,400,000
from the proceeds of this offering with which to pay any such potential claims (including costs and expenses incurred in connection with
our liquidation). In the event that we liquidate and it is subsequently determined that the reserve for claims and liabilities is insufficient,
stockholders who received funds from our trust account could be liable for claims made by creditors. In the event that our offering expenses
exceed our estimate of $540,000, we may fund such excess with funds from the funds not to be held in the trust account. In such case,
the amount of funds we intend to be held outside the trust account would decrease by a corresponding amount. Conversely, in the event
that the offering expenses are less than our estimate of $540,000, the amount of funds we intend to be held outside the trust account
would increase by a corresponding amount.
Under the DGCL, stockholders
may be held liable for claims by third parties against a corporation to the extent of distributions received by them in a dissolution.
The pro rata portion of our trust account distributed to our public stockholders upon the redemption of our public shares if we do not
consummate our initial business combination within 18 months from the completion of this offering, or 21 months from the closing of this
offering if we have executed a letter of intent, agreement in principle or definitive agreement for our initial business combination
within 18 months from the closing of, may be considered a liquidation distribution under Delaware law. If the corporation complies with
certain procedures set forth in Section 280 of the DGCL intended to ensure that it makes reasonable provision for all claims against
it, including a 60-day notice period during which any third-party claims can be brought against the corporation, a 90-day period during
which the corporation may reject any claims brought, and an additional 150-day waiting period before any liquidating distributions are
made to stockholders, any liability of stockholders with respect to a liquidating distribution is limited to the lesser of such stockholder’s
pro rata share of the claim or the amount distributed to the stockholder, and any liability of the stockholder would be barred after
the third anniversary of the dissolution.
Furthermore, if the pro
rata portion of our trust account distributed to our public stockholders upon the redemption of our public shares in the event we do
not consummate our initial business combination within 18 months from the completion of this offering, or 21 months from the closing
of this offering if we have executed a letter of intent, agreement in principle or definitive agreement for our initial business combination
within 18 months from the closing of, is not considered a liquidation distribution under Delaware law and such redemption distribution
is deemed to be unlawful, then pursuant to Section 174 of the DGCL, the statute of limitations for claims of creditors could then
be six years after the unlawful redemption distribution, instead of three years, as in the case of a liquidation distribution. If we
have not consummated a business combination within 18 months from the completion of this offering, or 21 months from the closing of this
offering if we have executed a letter of intent, agreement in principle or definitive agreement for our initial business combination
within 18 months from the closing of, or earlier at the discretion of our board, we will: (i) cease all operations except for the
purpose of winding up, (ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem all public
shares then outstanding at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the trust account, including
any amounts representing interest earned on the trust account, less any interest released to us to pay our franchise and income taxes
and up to $100,000 to pay dissolution expenses, divided by the number of then outstanding public shares, which redemption will completely
extinguish public stockholders’ rights as stockholders (including the right to receive further liquidation distributions, if any),
subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of our
remaining stockholders and our board of directors, dissolve and liquidate, subject in each case to our obligations under Delaware law
to provide for claims of creditors and the requirements of other applicable law. Accordingly, it is our intention to redeem our public
shares as soon as reasonably possible following our 18th month and, therefore, we do not intend to comply with those procedures. As such,
our stockholders could potentially be liable for any claims to the extent of distributions received by them (but no more) and any liability
of our stockholders may extend well beyond the third anniversary of such date.
Because we will not be complying with Section 280,
Section 281(b) of the DGCL requires us to adopt a plan, based on facts known to us at such time that will provide for our payment
of all existing and pending claims or claims that may be potentially brought against us within the subsequent 10 years. However,
because we are a blank check company, rather than an operating company, and our operations will be limited to searching for prospective
target businesses to acquire, the only likely claims to arise would be from our vendors (such as lawyers, investment bankers, etc.)
or prospective target businesses. As described above, pursuant to the obligation contained in our underwriting agreement, we will seek
to have all vendors, service providers, prospective target businesses or other entities with which we do business execute agreements with
us waiving any right, title, interest or claim of any kind in or to any monies held in the trust account.
As a result of this obligation
and Emerald ESG Sponsor, LLC’s indemnification of the trust account against certain claims as previously described in this section,
we believe that the claims that could be made against us will be significantly limited and that the likelihood that any claim that would
result in any liability extending to the trust account is remote. Further, Emerald ESG Sponsor, LLC may be liable only to the extent
necessary to ensure that the amounts in the trust account are not reduced below $10.10 per public share, and will not be liable as to
any claims under our indemnity of the underwriter of this offering against certain liabilities, including liabilities under the Securities
Act. In the event that an executed waiver is deemed to be unenforceable against a third party, Emerald ESG Sponsor, LLC will not be responsible
to the extent of any liability for such third-party claims.
If we file a bankruptcy
petition or an involuntary bankruptcy petition is filed against us that is not dismissed, the proceeds held in the trust account could
be subject to applicable bankruptcy law, and may be included in our bankruptcy estate and subject to the claims of third parties with
priority over the claims of our stockholders. To the extent any bankruptcy claims deplete the trust account, we cannot assure you we
will be able to return $10.10 per share to our public stockholders. Additionally, if we file a bankruptcy petition or an involuntary
bankruptcy petition is filed against us that is not dismissed, any distributions received by stockholders could be viewed under applicable
debtor/creditor and/or bankruptcy laws as either a “preferential transfer” or a “fraudulent conveyance.” As a
result, a bankruptcy court could seek to recover all amounts received by our stockholders. Furthermore, our board may be viewed as having
breached its fiduciary duty to our creditors and/or may have acted in bad faith, and thereby exposing itself and our company to claims
of punitive damages, by paying public stockholders from the trust account prior to addressing the claims of creditors.
We cannot assure you that claims will not be brought
against us for these reasons.
Our public stockholders
will be entitled to receive funds from the trust account only in the event of the redemption of our public shares if we do not consummate
a business combination within 18 months from the completion of this offering. However, if we anticipate that we may not be able to consummate
our initial business combination within 18 months, we may, by resolution of our board of directors if requested by our sponsor, extend
the period of time we have to consummate an initial business combination by an additional 3 months (for a total of up to 21 months from
the closing of this offering). In the event we seek stockholder approval in connection with our initial business combination, a stockholder’s
voting in connection with the business combination alone will not result in a stockholder’s redeeming its shares for an applicable
pro rata share of the trust account. Such stockholder must have also exercised its redemption rights described above.
Comparison of redemption or purchase prices in connection with our
initial business combination and if we fail to consummate a business combination.
The following table compares
the redemptions and other permitted purchases of public shares that may take place in connection with the consummation of our initial
business combination and if we are unable to consummate an initial business combination within 18 months from the completion of this
offering, or 21 months from the closing of this offering if we have executed a letter of intent, agreement in principle or definitive
agreement for our initial business combination within 18 months from the closing of.
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Redemptions
in Connection
with our Initial Business
Combination
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Other
Permitted Purchases
of Public Shares by our
Affiliates
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Redemptions
if we fail to
Consummate an Initial
Business Combination
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Calculation
of redemption price
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Redemptions
at the time of our initial business combination may be made pursuant to a tender offer or
in connection with a stockholder vote. The redemption price will be the same whether we conduct
redemptions pursuant to a tender offer or in connection with a stockholder vote. In either
case, our public stockholders may redeem their public shares for cash equal to the aggregate
amount then on deposit in the trust account as of two business days prior to the consummation
of our initial business combination (which is initially anticipated to be $10.10 per public
share), including any amounts representing deferred underwriting commissions and interest
earned on the trust account, less any interest released to us for the payment of taxes or
dissolution expenses, divided by the number of then outstanding public shares; subject to
the limitation that no redemptions will take place if all of the redemptions would cause
our net tangible assets to be less than $5,000,001 upon consummation of our initial business
combination and any limitations (including but not limited to cash requirements) agreed to
in connection with the negotiation of terms of a proposed business combination.
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If
we seek stockholder approval of our initial business combination and we do not conduct redemptions in connection with our business
combination pursuant to the tender offer rules, our affiliates may enter into privately negotiated transactions to purchase public
shares from stockholders. There is no limit to the prices that our initial stockholders, directors, officers or their affiliates
may pay in these transactions.
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If
we are unable to consummate an initial business combination within 18 months from the completion
of this offering, or 21 months from the closing of this offering if we have executed
a letter of intent, agreement in principle or definitive agreement for our initial business
combination within 18 months from the closing of this offering but have not completed
our initial business combination within such 18-month period, we will redeem all public
shares at a per-share price, payable in cash, equal to the aggregate amount, then on deposit
in the trust account (which is initially anticipated to be $10.10 per public share), including
any amounts representing deferred underwriting commissions and interest earned on the trust
account, less any interest released to us to pay our franchise and income taxes and up to
$100,000 to pay dissolution expenses, divided by the number of then outstanding public shares.
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Impact
to remaining stockholders
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The
redemptions in connection with our initial business combination will reduce the book value per share for our remaining stockholders,
who will bear the burden of the deferred underwriting commissions and franchise and income taxes payable.
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None.
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The
redemption of our public shares if we fail to consummate a business combination will reduce the book value per share for the founder
shares and the placement shares held by our initial stockholders, who will be our only remaining stockholders after such redemptions.
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Comparison of This Offering to Those of Blank Check Companies Subject
to Rule 419
The following table compares the terms of this
offering to the terms of an offering by a blank check company subject to the provisions of Rule 419. This comparison assumes that
the gross proceeds, underwriting commissions and underwriting expenses of our offering would be identical to those of an offering undertaken
by a company subject to Rule 419, and that the underwriter will not exercise its overallotment option. None of the provisions of
Rule 419 apply to our offering.
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Terms of Our Offering
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Terms Under a Rule 419 Offering
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Escrow
of offering proceeds
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$222,200,000
of the net proceeds ($255,530,000 if the underwriter’s overallotment option is exercised in full) of this offering and the
private placement, which includes $7.7 million in deferred underwriting commissions (approximately $8.9 million if the underwriter’s
overallotment option is exercised in full), will be deposited into a trust account in the United States with Continental Stock
Transfer & Trust Company, acting as trustee.
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Approximately
$229,635,000 of the offering proceeds, representing the gross proceeds of this offering, would be required to be deposited into either
an escrow account with an insured depositary institution or in a separate bank account established by a broker-dealer in which the
broker-dealer acts as trustee for persons having the beneficial interests in the account.
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Investment
of net proceeds
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$222,200,000
of the net proceeds ($255,530,000 if the underwriter’s overallotment option is exercised in full) of this offering and the
private placement, which includes $7.7 million in deferred underwriting commissions (approximately $8.9 million if the underwriter’s
overallotment option is exercised in full) held in trust will be invested only in United States government treasury bills with
a maturity of 185 days or less or in money market funds investing solely in United States Treasuries and meeting certain
conditions under Rule 2a-7 under the Investment Company Act.
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Proceeds
could be invested only in specified securities such as a money market fund meeting conditions of the Investment Company Act or in
securities that are direct obligations of, or obligations guaranteed as to principal or interest by, the United States.
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Receipt of interest on funds in trust account
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We will be entitled to withdraw interest income earned on the funds in the trust account to pay our franchise and income taxes and up to $100,000 to pay dissolution expenses. Our stockholders will have no right to receive any pro-rata portion of interest income earned on the proceeds held in the trust account released to us.
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Interest on funds in the escrow account would be held for the sole benefit of investors, unless and only after the funds held in escrow were released to us in connection with our consummation of a business combination.
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Limitation on fair value or net assets of target business
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So long as we obtain and maintain a listing for our securities on Nasdaq, we must complete one or more business combinations having an aggregate fair market value of at least 80% of the value of the assets held in the trust account (excluding taxes payable on the income earned on the trust account) at the time of the agreement to enter into the initial business combination.
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The fair value or net assets of a target business must represent at least 80% of the maximum offering proceeds.
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Trading of securities issued
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We expect the units will begin trading on or promptly after the date of this prospectus. The common stock and warrants comprising the units will begin separate trading on the 52nd day following the date of this prospectus unless Goldman Sachs informs us of its decision to allow earlier separate trading, subject to our having filed the Current Report on Form 8-K described under “Description of Securities — Units” and having issued a press release announcing when such separate trading will begin. We will file the Current Report on Form 8-K promptly after the completion of this offering, which is anticipated to take place three business days from the date of this prospectus. If the overallotment option is exercised following the initial filing of such Current Report on Form 8-K, a second or amended Current Report on Form 8-K will be filed to provide updated financial information to reflect the exercise of the overallotment option.
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No trading of the units or the underlying Class A common stock and warrants would be permitted until the completion of a business combination. During this period, the securities would be held in the escrow or trust account.
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Terms of Our Offering
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Terms Under a Rule 419 Offering
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Exercise of the warrants
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The warrants cannot be exercised until 30 days after the consummation of our initial business combination.
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The warrants could be exercised prior to the completion of a business combination, but securities received and cash paid in connection with the exercise would be deposited in the escrow or trust account.
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Election to remain an investor
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We will provide our public stockholders with the opportunity to redeem
their shares of Class A common stock upon the consummation of our initial business combination at a per-share price, payable in cash,
equal to the aggregate amount then on deposit in the trust account as of two business days prior to the consummation of our initial business
combination, including any amounts representing deferred underwriting commissions and interest earned on the trust account (net of taxes
payable), divided by the number of then outstanding public shares, subject to the limitations described herein.
We may not be required by law to hold a stockholder vote. We intend
to give at least 10 days prior written notice of any such meeting, if required, at which a vote shall be taken to approve our initial
business combination. If we are not required by law and do not otherwise decide to hold a stockholder vote, we will, pursuant to our amended
and restated certificate of incorporation, conduct the redemptions pursuant to the tender offer rules of the SEC and file tender
offer documents with the SEC which will contain substantially the same financial and other information about the initial business combination
and the redemption rights as is required under the SEC’s proxy rules. In the event we conduct redemptions pursuant to the tender
offer rules, our offer to redeem will remain open for at least 20 business days, in accordance with Rule 14e-1(a) under the
Exchange Act, and we will not be permitted to complete our initial business combination until the expiration of the tender offer period.
If, however, we hold a stockholder vote, we will, like many blank check companies, offer to redeem shares in conjunction with a proxy
solicitation pursuant to the proxy rules. If we seek stockholder approval, we will complete our initial business combination only if a
majority of the outstanding shares of common stock voted are voted in favor of the initial business combination.
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A prospectus containing information pertaining to the business combination required by the SEC would be sent to each investor. Each investor would be given the opportunity to notify the company in writing, within a period of not less than 20 business days and no more than 45 business days from the effective date of a post-effective amendment to the company’s registration statement, to decide if he, she or it elects to remain a stockholder of the company or requires the return of his, her or its investment. If the company has not received the notification by the end of the 45th business day, funds and interest or dividends, if any, held in the trust or escrow account would be automatically returned to the stockholder. Unless a sufficient number of investors elect to remain investors, all funds on deposit in the escrow account must be returned to all of the investors and none of the securities are issued.
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Terms of Our Offering
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Terms Under a Rule 419 Offering
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Additionally, each public stockholder may elect to redeem their public shares irrespective of whether they vote for or against the proposed transaction. A quorum for such meeting will consist of the holders present in person or by proxy of shares of outstanding capital stock of the company representing a majority of the voting power of all outstanding shares of capital stock of the company entitled to vote at such meeting.
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Business
combination deadline
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If
we are unable to complete a business combination within 18 months from completion of this offering, or 21 months from the closing
of this offering if we have executed a letter of intent, agreement in principle or definitive agreement for our initial business
combination within 18 months from the closing of this offering but have not completed our initial business combination within such
18-month period, we will: (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably
possible but not more than ten business days thereafter, redeem the public shares, at a per-share price, payable in cash, equal to
the aggregate amount then on deposit in the trust account, including any amounts representing interest earned on the trust account,
less any interest released to us to pay our franchise and income taxes and up to $100,000 to pay dissolution expenses, divided by
the number of then outstanding public shares, which redemption will completely extinguish public stockholders’ rights as stockholders
(including the right to receive further liquidation distributions, if any), subject to applicable law, and (iii) as promptly
as reasonably possible following such redemption, subject to the approval of our remaining stockholders and our board of directors,
dissolve and liquidate, subject in each case to our obligations under Delaware law to provide for claims of creditors and the requirements
of other applicable law.
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If
an acquisition has not been consummated within 18 months after the effective date of the company’s registration statement,
or 21 months from the closing of this offering if we have executed a letter of intent, agreement in principle or definitive agreement
for our initial business combination within 18 months from the closing of this offering but have not completed our initial business
combination within such 18-month period, funds held in the trust or escrow account are returned to investors.
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Terms of Our Offering
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Terms Under a Rule 419 Offering
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Limitation on redemption rights of stockholders holding more than 20% of the shares sold in this offering if we hold a stockholder vote
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If we seek stockholder approval of our initial business combination and we do not conduct redemptions in connection with our initial business combination pursuant to the tender offer rules, our amended and restated certificate of incorporation will provide that a public stockholder (including our affiliates), together with any affiliate of such stockholder or any other person with whom such stockholder is acting in concert or as a “group” (as defined under Section 13 of the Exchange Act), will be restricted from seeking redemption rights with respect to Excess Shares (more than an aggregate of 15% of the shares sold in this offering). Our public stockholders’ inability to redeem Excess Shares will reduce their influence over our ability to complete our initial business combination and they could suffer a material loss on their investment in us if they sell any Excess Shares in open market transactions.
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Many blank check companies provide no restrictions on the ability of stockholders to redeem shares based on the number of shares held by such stockholders in connection with an initial business combination.
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Tendering stock certificates in connection with a tender offer or redemption rights
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We may require our public stockholders seeking to exercise their redemption rights, whether they are record holders or hold their shares in “street name,” to either tender their certificates to our transfer agent prior to the date set forth in the tender offer documents mailed to such holders or up to two business days prior to the vote on the proposal to approve the initial business combination in the event we distribute proxy materials, or to deliver their shares to the transfer agent electronically using The Depository Trust Company’s DWAC System, at the holder’s option. The tender offer or proxy materials, as applicable, that we will furnish to holders of our public shares in connection with our initial business combination will indicate whether we are requiring public stockholders to satisfy such delivery requirements. Accordingly, a public stockholder would have from the time we send out our tender offer materials until the close of the tender offer period, or up to two business days prior to the vote on the initial business combination if we distribute proxy materials, as applicable, to tender its shares if it wishes to seek to exercise its redemption rights.
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In order to perfect redemption rights in connection with their business combinations, holders could vote against a proposed initial business combination and check a box on the proxy card indicating such holders were seeking to exercise their redemption rights. After the business combination was approved, the company would contact such stockholders to arrange for them to deliver their certificate to verify ownership.
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Terms of Our Offering
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Terms Under a Rule 419 Offering
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Release
of funds
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Except
for interest income earned on the trust account balance, which will be released to us to pay our taxes or to pay dissolution expenses
(up to $100,000), none of the funds held in trust will be released from the trust account until the earlier of (i) the consummation
of our initial business combination; (ii) the redemption of our public shares if we are unable to consummate a business combination
within 18 months from the completion of this offering, or 21 months from the closing of this offering if we have executed a letter
of intent, agreement in principle or definitive agreement for our initial business combination within 18 months from the closing
of, subject to applicable law; or (iii) otherwise upon our liquidation or in the event our board of directors resolves to liquidate
the trust account and ceases to pursue the consummation of a business combination prior to the expiration of the 18 month period,
which is extendable at our sponsor's option to up to 21 months as described herein.
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The
proceeds held in the escrow account are not released until the earlier of the completion of a business combination or the failure
to effect a business combination within the allotted time.
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Competition
In identifying, evaluating and selecting a target
business for our initial business combination, we may encounter intense competition from other entities having a business objective similar
to ours, including other blank check companies, private equity groups and leveraged buyout funds and operating businesses seeking strategic
acquisitions. Many of these entities are well established and have extensive experience identifying and effecting business combinations
directly or through affiliates. Moreover, many of these competitors possess greater financial, technical, human and other resources than
us. Our ability to acquire larger target businesses will be limited by our available financial resources. This inherent limitation gives
others an advantage in pursuing the acquisition of a target business. Furthermore, our obligation to pay cash to our public stockholders
who exercise their redemption rights may reduce the resources available to us for an initial business combination. In addition, the number
of our outstanding warrants, and the future dilution they potentially represent, may not be viewed favorably by certain target businesses.
Either of these factors may place us at a competitive disadvantage in successfully negotiating an initial business combination.
Facilities
We currently maintain our executive offices at
2929 Arch Street, Suite 1703, Philadelphia, PA 19104-2870. The cost for our use of this space is included in the $30,000 per month
fee we will pay to our sponsor or its designee for office space, administrative and shared personnel support services. We consider our
current office space adequate for our current operations.
Employees
We currently have three executive officers. These
individuals are not obligated to devote any specific number of hours to our affairs but they intend to devote as much of their time as
they deem necessary to our affairs until we have completed our initial business combination. The amount of time they will devote in any
time period will vary based on whether a target business has been selected for our initial business combination and the stage of the business
combination process we are in. We do not intend to have any full time employees prior to the consummation of our initial business combination.
Periodic Reporting and Financial Information
We will register our units, Class A common
stock and warrants under the Exchange Act and have reporting obligations, including the requirement that we file annual, quarterly and
current reports with the SEC. In accordance with the requirements of the Exchange Act, our annual reports will contain financial statements
audited and reported on by our independent registered public accountants.
Prior to the date of this prospectus, we will
file a Registration Statement on Form 8-A with the SEC to register our securities under Section 12 of the Exchange Act. As a
result, we will be subject to the rules and regulations promulgated under the Exchange Act. We have no current intention of filing
a Form 15 to suspend our reporting or other obligations under the Exchange Act prior or subsequent to the consummation of our business
combination.
We will provide stockholders with audited financial
statements of the prospective target business as part of the tender offer materials or proxy solicitation materials sent to stockholders
to assist them in assessing the target business. In all likelihood, these financial statements will need to be prepared in accordance
with GAAP, or IFRS, depending on the circumstances, and the historical financial statements may be required to be audited in accordance
with the standards of the PCAOB. These financial statement requirements may limit the pool of potential targets we may conduct an initial
business combination with because some targets may be unable to provide such statements in time for us to disclose such statements in
accordance with federal proxy rules and complete our initial business combination within the prescribed time frame. We cannot assure
you that any particular target business identified by us as a potential acquisition candidate will have financial statements prepared
in accordance with the above requirements or that the potential target business will be able to prepare its financial statements in accordance
with the above requirements. To the extent that these requirements cannot be met, we may not be able to acquire the proposed target business.
While this may limit the pool of potential acquisition candidates, we do not believe that this limitation will be material.
We will be required to evaluate our internal control
procedures for the fiscal year ending December 31, 2022 as required by the Sarbanes-Oxley Act. Only in the event we are deemed to
be a large accelerated filer or an accelerated filer will we be required to have our internal control procedures audited. A target company
may not be in compliance with the provisions of the Sarbanes-Oxley Act regarding adequacy of their internal controls. The development
of the internal controls of any such entity to achieve compliance with the Sarbanes-Oxley Act may increase the time and costs necessary
to complete any such acquisition.
We are an “emerging growth company,”
as defined in Section 2(a) of the Securities Act, as modified by the JOBS Act. As such, we are eligible to take advantage of
certain exemptions from various reporting requirements that are applicable to other public companies that are not “emerging growth
companies” including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404
of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements,
and exemptions from the requirements of holding a non-binding advisory vote on executive compensation and stockholder approval of any
golden parachute payments not previously approved. If some investors find our securities less attractive as a result, there may be a less
active trading market for our securities and the prices of our securities may be more volatile.
In addition, Section 107 of the JOBS Act
also provides that an “emerging growth company” can take advantage of the extended transition period provided in Section 7(a)(2)(B) of
the Securities Act for complying with new or revised accounting standards. In other words, an “emerging growth company” can
delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We intend to take
advantage of the benefits of this extended transition period.
We
will remain an emerging growth company until the earlier of (1) the last day of the fiscal year (a) following the fifth anniversary
of the completion of this offering, (b) in which we have total annual gross revenue of at least $1.07 billion, or (c) in which
we are deemed to be a large accelerated filer, which means the market value of our Class A common stock that is held by non-affiliates
exceeds $700 million as of the prior June 30th, and (2) the date on which
we have issued more than $1.0 billion in non-convertible debt securities during the prior three-year period. References herein to “emerging
growth company” shall have the meaning associated with it in the JOBS Act.
Legal Proceedings
There is no material litigation, arbitration or
governmental proceeding currently pending against us or any members of our management team in their capacity as such, and we and the members
of our management team have not been subject to any such proceeding in the 12 months preceding the date of this prospectus.
MANAGEMENT
Directors, Director Nominees and Executive Officers
Our directors, director nominees and executive
officers are as follows:
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Name
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Age
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Title
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Betsy Cohen
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80
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Director and Chairman of the Board
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Tensie Whelan
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61
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Director Nominee
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Therese Rein
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63
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Director Nominee
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Andrew Hohns
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43
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Director Nominee
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Lisa Shalett
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55
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Director Nominee
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Bracebridge H. Young, Jr.
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65
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President and Chief Executive Officer
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Mark Tercek
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64
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Director Nominee (Vice Chairman)
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Doug Listman
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51
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Chief Financial Officer
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Betsy Z. Cohen, Chairman.
Betsy Z. Cohen has served as Chairman of FTAC Emerald Acquisition Corp., formerly known as Emerald ESG Acquisition Corp., since
April 29, 2021. Since January 2021, she has served as Chairman of the board of directors of FTAC Hera, since November 2020, she has
served as Chairman of the board of directors of FinTech VI, since November 2020, she has served as Chairman of the board of
directors of FTAC Athena, and since June 2019, she has served as Chairman of the board of directors of FinTech V. She previously
served as a director of Metromile, Inc. (NASDAQ: MILE), the successor to INSU II. Ms. Cohen served as Chairman of FTAC
Olympus’s board of directors from November 2020 until June 2021, as Chairman of FinTech IV’s board of directors from May
2019 until June 2021, as Chairman of FinTech III’s board of directors from March 2017 until October 2020, and as Chairman of
FinTech II’s board of directors from August 2016 until July 2018. She served as a director of FinTech I and its successor,
Card Connect Corp., a provider of payment processing solutions to merchants, from November 2013 until May 2017, and previously
served as Chairman of the board of directors of FinTech I from July 2014 through July 2016 and as FinTech I’s Chief Executive
Officer from July 2014 through August 2014. She served as Chief Executive Officer of Bancorp and its wholly-owned subsidiary,
Bancorp Bank, from September 2000 and Chairman of Bancorp Bank from November 2003, and resigned from these positions upon her
retirement in December 2014. She served as the Chairman of the Board of Trustees and as a trustee of RAIT Financial Trust, a real
estate investment trust, from its founding in August 1997, through her resignation as of December 31, 2010 and served as
RAIT’s Chief Executive Officer from 1997 to 2006. Ms. Cohen served as a director of Hudson United Bancorp (a bank holding
company), the successor to JeffBanks, Inc., from December 1999 until July 2000 and as the Chairman of the Jefferson Bank Division of
Hudson United Bank (Hudson United Bancorp’s banking subsidiary) from December 1999 through March 2000. Before the merger of
JeffBanks, Inc. with Hudson United Bancorp in December 1999, Ms. Cohen was Chairman and Chief Executive Officer of JeffBanks, Inc.
from its inception in 1981 and also served as Chairman and Chief Executive Officer of each of its subsidiaries, Jefferson Bank,
which she founded in 1974, and Jefferson Bank New Jersey, which she founded in 1987. From 1985 until 1993, Ms. Cohen was a director
of First Union Corp. of Virginia (a bank holding company) and its predecessor, Dominion Bancshares, Inc. Ms. Cohen also served as a director of Aetna, Inc.
(NYSE: AET), an insurance company, from 1994 until May 2018. Our board has determined that Ms. Cohen’s extensive experience in
the financial services industry generally, and the financial technology industry in particular, as well as extensive experience in
operating financial services companies in a public company environment, qualifies her to serve as a member of our board of
directors.
Mark Tercek, Director Nominee (Vice
Chairman). Mr. Tercek will serve as director and Vice Chairman of the Board immediately
upon the effective date of this prospectus. He is a global conservation leader and financial professional with expertise in conservation
finance, corporate sustainability, and cross-sector collaboration. From 2008 to 2019, Mark served as CEO of The Nature Conservancy, the
largest private conservation organization in the United States. Under Mr. Tercek’s leadership, The Nature Conservancy launched
NatureVest, the impact capital initiative, ran a $7 billion capital fundraising campaign, and established a permanent department focused
on gender, diversity, equity and inclusion (GDEI). Prior to serving as CEO of The Nature Conservancy, Mr. Tercek served as Managing Director
and Partner at Goldman Sachs, where over time he had responsibility for managing several of the firm’s key units, including Corporate
Finance, Real Estate Investment Banking, Equity Capital Markets, and Pine Street, the firm’s leadership development program. In
2005, he was tapped to develop Goldman Sachs’s environmental strategy and to lead its Environmental Markets Group. In addition,
Mr. Tercek has advised on boards and councils for a number of global organizations, including the Nicholas Institute for Environmental
Policy Solutions at Duke University, the Social Enterprise Initiative at Harvard Business School, the China Council for International
Cooperation on Environment and Development, the Rockefeller Foundation Economic Council on Planetary Health, Acumen, the AXA Stakeholders
Advisory Panel, and Resources for the Future. From 2003 until 2008, Mr. Tercek was on the finance faculty of New York University’s
Stern School of Business. Since 2016, he has served on the Board of Trustees of Williams College. He is the co-author of the Washington
Post and Publisher’s Weekly bestselling book Nature’s Fortune: How Business and Society Thrive by Investing in Nature. Mr.
Tercek earned an M.B.A. from Harvard in 1984 and a B.A. from Williams College in 1979.
Bracebridge H. Young, Jr., President
and Chief Executive Officer. Mr. Young is President and Chief Executive Officer of Emerald ESG Acquisition Corporation and
also serves as Executive Chairman of Arabesque USA, a global asset management firm that specializes in integrating artificial intelligence
and sustainability research into its investment approach. In addition, Mr. Young serves as a member of the board of advisors of Newmarket
Investment Management. Prior to joining Arabesque USA in 2017, Mr. Young served as Chief Executive Officer at Eclat Impact in 2016. From
2000 through 2015, Mr. Young served as Chief Executive Officer and Partner at Mariner Investment Group. He joined Mariner directly from
Goldman Sachs, where he began on the Commercial Paper trading desk in 1980 and subsequently served as Head Trader for institutional money
market funds, Co-Head of the Money Market Sales and Trading Department in New York, Head of Fixed-Income activity in Tokyo, Head of Fixed-Income
and foreign exchange sales in London, and, finally, Partner and Head of European Debt Capital Markets in New York. Mr. Young serves as
Chairman of the board of directors of Social Finance, Inc., a Boston-based nonprofit organization dedicated to mobilizing investment
capital to drive social change, serves on the boards of directors for Social Progress Imperative, a non-profit best known for measuring
countries’ social and environmental performance, Cultivo, the developer of an investment platform focused on environmental ventures,
and TerViva, an agricultural technology company. Additionally, he is an advisor to Upwell, technology-enabled water asset company. Mr.
Young received a B.A from Bowdoin College in 1977 and an M.B.A. from New York University’s Stern School of Business in 1983..
Lisa M. Shalett, Director Nominee. Ms.
Shalett is a former Goldman Sachs Partner who now serves on public and private boards, and is the Founder of Extraordinary Women on Boards,
a community of women corporate directors focused on improving board excellence, modernizing governance, and increasing diversity on boards.
Over her 20-year career at Goldman Sachs, from 1995-2015, including 13 years as a Partner, Ms. Shalett led the Global Japanese Shares
business, International Equities Sales & Trading in North America, was Chief Operating Officer of Global Compliance, Legal and Internal
Audit, and from 2010 was Head of Brand Marketing & Digital Strategy, leading Goldman’s brand during the financial crisis. She
became Chief Marketing Officer at millennials-focused media startup Odyssey (2015-2016), and then joined Brookfield Asset Management
as Managing Partner, Head of Strategic Innovation (2018-2019). Ms. Shalett served as a member of the board of directors of Brookfield
Property Partners (Nasdaq: BPY) and its Audit Committee, from 2015-2018 and PerformLine, a private venture capital-backed company from
2015-2019. Currently, she serves on the boards of directors of PennyMac (NYSE: PFSI, 2020 to present), and on the Audit Committee and
Nominating & Governance Committee, AccuWeather (a private company, 2018 to present) and Chair of the Marketing Committee, and Bully
Pulpit Interactive (a private, private equity-backed company, 2017 to present). Ms. Shalett received a B.A., summa cum laude, in East
Asian Studies from Harvard University and an M.B.A. from Harvard Business School.
Andrew Hohns, Director Nominee.
Since April 2020, Dr. Hohns has served as founding member and Chief Executive Officer of Newmarket Investment Management, a
registered investment advisor managing capital on behalf of institutional investors worldwide, targeting investments in structured opportunities
sourced from a global network of banks and financial institutions. Newmarket was established in 2020 to acquire and assume management
of Mariner Investment Group’s International Infrastructure Finance Company (IIFC) strategy, a platform co-founded by Dr. Hohns
in 2013. He is a regular speaker at various industry conferences, with special expertise in topics related to infrastructure, securitization,
socially responsible investment, impact investment, and development finance. Prior to joining Mariner, Dr. Hohns was a Managing
Director at Cohen & Company. Dr. Hohns serves as Commissioner on the U.S. Semiquincentennial Commission and as a member
of the board of directors of UNICEF USA. He also previously served as a director of INSU Acquisition Corp. II from September 2020
to February 2021. Dr. Hohns holds a B.S. in Economics from the Wharton School at the University of Pennsylvania, a Masters
in Liberal Arts from the School of Arts and Sciences at the University of Pennsylvania, and a PhD in Applied Economics and Managerial
Sciences from the Wharton School at the University of Pennsylvania.
Therese Rein, Director Nominee.
Therese Rein founded vocational rehabilitation and human services company Ingeus Limited in an attic office in Brisbane, Australia with
AUD 13,000 in 1989. She grew Ingeus to AUD 450 million a year in revenue, with 6,000 colleagues serving 500,000 people at any one time
in 10 countries on four continents (Australia, Europe, Middle East and Asia). She divested Ingeus in 2014 to the Providence Service Corporation
and continues on the advisory board of APM (the current owner of Ingeus). In 2012, she was named the Ernst and Young Champion Entrepreneur
of the Year. Additionally, She was awarded the Australian Human Rights Medal. Ms. Rein has had the honor of serving Australia as First
Lady. Ms. Rein has lived in China, the United States, the United Kingdom, Sweden, Hong Kong and Australia. She has also served on the
Paralympics Advisory Board, the National Apology Foundation, along with numerous patronages of organizations in disability, street to
home housing, food security, indigenous literacy, and the National Portrait Gallery. Since 2014 Ms. Rein has been on private investment
boards, mentoring start up CEO’s and not-for-profit CEO’s. Ms. Rein holds a degree with Honors in Psychology from Australian
National University and has been awarded three honorary doctorates from Griffith University, University of Western Sydney and Australian
National University.
Tensie Whelan, Director Nominee.
Professor Tensie Whelan is Clinical Professor of Business and Society and Director of NYU Stern School of Business's Center for Sustainable
Business, where she brings 25 years of experience working to engage businesses in proactive and innovative mainstreaming of sustainability.
As President of the Rainforest Alliance from June 2000 until September 2015, she led the organization's substantial growth and established
the Rainforest Alliance as an internationally recognized brand. Her previous work includes serving as executive director of the New York
League of Conservation Voters, Vice President of the National Audubon Society, Managing Editor of Ambio, a journal of the Swedish Academy
of Sciences, and as a journalist in Latin America. In 2008 and 2011, Ms. Whelan was recognized by Ethisphere as one of the 100
Most Influential People in Business Ethics and has served on non-profit boards and corporate advisory boards such as the Unilever Sustainable
Sourcing Advisory Board and currently sits on the InvestIndustrial Acquisition Corp. board and the advisory boards of Inherent Group,
Giant Ventures, and Alo Advisors. She served as Board Member of Aston Martin from October 2018 until May 2020. Ms. Whelan holds a B.A.
from New York University, an M.A from American University, and is a graduate of the Harvard Business School Owner President Management
Program.
Number and Terms of Office of Officers and Directors
Our board of directors is divided into two classes
with only one class of directors being elected in each year and each class (except for those directors appointed prior to our first annual
meeting of stockholders) serving a 2 year term. The term of office of the first class of directors, consisting of, Tensie Whelan and Therese
Rein, will expire at our first annual meeting of stockholders. The term of office of the second class of directors, consisting of Betsy
Cohen, Andrew Hohns and Lisa Shalett, will expire at the second annual meeting of stockholders. Collectively, through their positions
described above, our officers and directors have extensive experience in public companies and in the Target Sectors. These individuals
will play a key role in identifying and evaluating prospective acquisition candidates, selecting the target businesses, and structuring,
negotiating and consummating their acquisition.
Director Independence
Nasdaq rules require that a majority of the
board of directors of a company listed on Nasdaq must be composed of “independent directors.” An “independent director”
is defined generally as a person other than an officer or employee of the company or its subsidiaries or any other individual having a
relationship, which, in the opinion of the company’s board of directors, would interfere with the director’s exercise of independent
judgment in carrying out the responsibilities of a director. We have determined that Tensie Whelan, Andrew Hohns, Therese Rein, and Lisa
Shalett are independent directors under the Nasdaq rules and Rule 10A-3 of the Exchange Act.
Executive Officer and Director Compensation
None of our officers or directors have received
any cash compensation from us for services rendered to us. Commencing on the date that our securities are first listed on the NASDAQ through
the earlier of consummation of our initial business combination and our liquidation, we will pay our sponsor or its designee a total of
$30,000 per month for office space, administrative and shared personnel support services. Our sponsor intends to allocate 20,000 founder
shares to each independent director. Our sponsor, officers and directors, or entities with which they are affiliated, will be reimbursed
for any out-of-pocket expenses incurred in connection with activities on our behalf such as identifying potential target businesses and
performing due diligence on suitable business combinations. Our audit committee will review on a quarterly basis all payments that were
made to our sponsor, officers, directors or any entity with which they are affiliated.
After the consummation of our initial business
combination, directors or members of our management team who remain in one of those capacities may be paid director, consulting, management
or other fees from the combined company with any and all amounts being fully disclosed to stockholders, to the extent then known, in the
tender offer materials or proxy solicitation materials furnished to our stockholders in connection with a proposed business combination.
It is unlikely the amount of such compensation will be known at the time, as it will be up to the directors of the post-combination business
to determine executive and director compensation.
Any compensation to be paid to our officers will
be determined, or recommended to the board of directors for determination, either by a compensation committee consisting solely of independent
directors or by a majority of the independent directors on our board of directors.
We do not intend to take any action to ensure
that members of our management team maintain their positions with us after the consummation of our initial business combination, although
it is possible that some or all of our executive officers and directors may negotiate employment or consulting arrangements to remain
with us after the initial business combination. The existence or terms of any such employment or consulting arrangements may influence
our management’s motivation in identifying or selecting a target business although we do not believe that the ability of our management
to remain with us after the consummation of an initial business combination will be a determining factor in our decision to proceed with
any potential business combination. We are not party to any agreements with our executive officers and directors that provide for benefits
upon termination of employment.
Board Committees
Audit Committee
Subject to phase-in rules and a limited exception,
the rules of Nasdaq and Section 10A of the Exchange Act require that the audit committee of a listed company be comprised solely
of independent directors. Upon or prior to the effective date of the registration statement of which this prospectus forms a part, we
will establish an audit committee of the board of directors, which will consist of Andrew Hohns, Tensie Whelan, and Lisa Shalett, meet
the independent director standard under Nasdaq’s listing standards and under Rule 10A-3(b)(1) of the Exchange Act. Mr. Hohns
will serve as Chairman of our audit committee.
The audit committee’s duties, which are
specified in our Audit Committee Charter, include, but are not limited to:
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reviewing and discussing with management and the independent
auditor our annual audited financial statements, and recommending to the board whether the audited financial statements should be included
in our Form 10-K;
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discussing with management and the independent auditor significant
financial reporting issues and judgments made in connection with the preparation of our financial statements;
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discussing with management major risk assessment and risk management
policies;
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monitoring the independence of the independent auditor;
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verifying the rotation of the lead (or coordinating) audit partner
having primary responsibility for the audit and the audit partner responsible for reviewing the audit as required by law;
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reviewing and approving all related-party transactions;
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inquiring and discussing with management our compliance with
applicable laws and regulations;
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pre-approving all audit services and permitted non-audit services
to be performed by our independent auditor, including the fees and terms of the services to be performed;
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appointing or replacing the independent auditor;
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determining the compensation and oversight of the work of the
independent auditor (including resolution of disagreements between management and the independent auditor regarding financial reporting)
for the purpose of preparing or issuing an audit report or related work;
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establishing procedures for the receipt, retention and treatment
of complaints received by us regarding accounting, internal accounting controls or reports which raise material issues regarding our
financial statements or accounting policies; and
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approving reimbursement of expenses incurred by our management
team in identifying potential target businesses.
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Financial Expert on Audit Committee
The audit committee will at all times be composed
exclusively of independent directors who are “financially literate” as defined under Nasdaq’s listing standards. The
Nasdaq listing standards define “financially literate” as being able to read and understand fundamental financial statements,
including a company’s balance sheet, income statement and cash flow statement.
In addition, we must certify to the NASDAQ Global
Market that the committee has, and will continue to have, at least one member who has past employment experience in finance or accounting,
requisite professional certification in accounting, or other comparable experience or background that results in the individual’s
financial sophistication. We have determined that Mr. Hohns satisfies Nasdaq’s definition of financial sophistication and also
qualifies as an “audit committee financial expert,” as defined under rules and regulations of the SEC.
Compensation Committee
Upon the effectiveness of the registration statement
of which this prospectus forms a part, we will establish a compensation committee of the board of directors. The members of our Compensation
Committee will be Andrew Hohns, Tensie Whelan, and Lisa Shalett. Dr. Hohns will serve as chairman of the compensation committee.
We will adopt a compensation committee charter, which will detail the principal functions of the compensation committee, including:
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reviewing and approving on an annual basis the corporate goals
and objectives relevant to our Chief Executive Officer’s compensation, evaluating our Chief Executive Officer’s performance
in light of such goals and objectives and determining and approving the remuneration (if any) of our Chief Executive Officer’s
based on such evaluation;
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reviewing and approving the compensation of all of our other
executive officers;
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reviewing our executive compensation policies and plans;
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implementing and administering our incentive compensation equity-based
remuneration plans;
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assisting management in complying with our proxy statement and
annual report disclosure requirements;
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approving all special perquisites, special cash payments and
other special compensation and benefit arrangements for our executive officers and employees;
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producing a report on executive compensation to be included
in our annual proxy statement;
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reviewing, evaluating and recommending changes, if appropriate,
to the remuneration for directors; and
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monitoring compliance with the requirements under the Sarbanes-Oxley
Act relating to loans to directors and officers, and with all other applicable laws affecting employee compensation and benefits.
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The charter will also provide that the compensation
committee may, in its sole discretion, retain or obtain the advice of a compensation consultant, legal counsel or other adviser and will
be directly responsible for the appointment, compensation and oversight of the work of any such adviser. However, before engaging or receiving
advice from a compensation consultant, external legal counsel or any other adviser, the compensation committee will consider the independence
of each such adviser, including the factors required by Nasdaq and the SEC.
Code of Conduct and Ethics
Effective upon completion of this offering, we
will adopt a code of conduct and ethics applicable to our directors, officers and employees in accordance with applicable federal securities
laws.
Other Board Committees
We do not have a standing nominating committee.
In accordance with Rule 5605(e)(2) of the NASDAQ Rules, a majority of the independent directors may recommend a director nominee
for selection by the board of directors. The board of directors believes that the independent directors can satisfactorily carry out the
responsibility of properly selecting or approving director nominees without the formation of a standing nominating committee. As there
is no standing nominating committee, we do not have a nominating committee charter in place.
Conflicts of Interest
In general, officers and directors of a Delaware
corporation are required to present business opportunities to the corporation if:
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the corporation could financially undertake the opportunity;
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the opportunity is within the corporation’s line of business;
and
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it would not be fair to the corporation and its stockholders
for the opportunity not to be brought to the attention of the corporation.
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Our amended and restated certificate of incorporation
provides, however, that the doctrine of corporate opportunity, or any other analogous doctrine, will not apply to us or any of our officers
or directors or in circumstances that would conflict with any current or future fiduciary duties or contractual obligations.
Accordingly, if any of our officers or directors
becomes aware of a business combination opportunity that falls within the line of business of any entity to which he or she has pre-existing
fiduciary or contractual obligations, he or she may be required to present the opportunity to such entity prior to presenting the opportunity
to us or, if he or she is subject to a non-compete obligation that includes business opportunities, he or she may be prohibited from referring
such opportunity to us. Below is a table summarizing the companies to which our officers and directors owe fiduciary obligations that
could conflict with their fiduciary obligations to us, all of which may have to (i) be presented appropriate potential target businesses
by our officers or directors, and (ii) reject the opportunity to acquire such potential target business, before the opportunity may
be presented to us:
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Individual
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Entity
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Affiliation
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Betsy Cohen
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Fintech Acquisition Corp. IV
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Chairman
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Fintech Acquisition Corp. V
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Chairman
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Fintech Acquisition Corp. VI
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Chairman
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FTAC Olympus Acquisition Corp.
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Chairman
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FTAC Athena Acquisition Corp.
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Chairman
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FTAC Hera Acquisition Corp.
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Chairman
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C&W Acquisition Corp.
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Director
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INSU Acquisition Corp. II
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Director
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INSU Acquisition Corp. III
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Director Nominee
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Tensie Whelan
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Investindustrial Acquisition Corp.
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Director
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Globescan
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Director
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Inherent Group
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Director
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Arabeqsque
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Director
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Odebrecht Global Advisory Council
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Director
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Doug Listman
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Fintech Acquisition Corp. VI
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Chief Financial Officer
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Fintech Acquisition Corp. V
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Chief Financial Officer
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Fintech Acquisition Corp. IV
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Chief Financial Officer
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FTAC Olympus
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Chief Financial Officer
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FTAC Olympus Acquisition Corp.
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Chief Financial Officer
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FTAC Athena Acquisition Corp.
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Chief Financial Officer
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FTAC Hera Acquisition Corp.
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Chief Financial Officer
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J.V.B. Financial Group, LLC
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Chief Financial Officer
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Cohen & Company, Inc.
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Chief Financial Officer
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Cohen & Company, LLC
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Chief Financial Officer
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Bracebridge H. Young, Jr.
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Arabesque USA
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Executive Chairman
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Newmarket Investment Management
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Board of Advisors
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Cultivo Land PBC
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Director
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Social Finance, Inc.
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Chairman
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Social Progress Imperative
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Director
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Mark Tercek
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Cultivo Land PBC
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Director
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Williams College
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Board of Trustees
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Lisa M. Shalett
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PennyMac
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Director
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AccuWeather
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Director
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Bully Puplpit Interactive
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Director
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Andrew Hohns
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Newmarket Investment Management
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Chief Executive Officer
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Accordingly, if any of the above officers or directors
become aware of a business combination opportunity which is suitable for any of the above entities to which he or she has then-current
fiduciary or contractual obligations, he or she will honor his or her fiduciary or contractual obligations to present such business combination
opportunity to such entity, and only present it to us if such entity rejects the opportunity, subject to his or her fiduciary duties.
We do not believe, however, that any of the foregoing fiduciary duties or contractual obligations will materially affect our ability to
complete our initial business combination, because, although many of the foregoing entities are involved in the Target Sectors broadly
defined, the specific industry focuses of a majority of these entities differ from our focus on ESG businesses and the type or size of
the transaction that such companies would most likely consider are of a size and nature substantially different than what we are targeting.
Each of our sponsor, officers and directors may
become involved with subsequent blank check companies similar to our company. As a result, our sponsor, officers or directors could have
conflicts of interest in determining whether to present business combination opportunities to us or to any other blank check company with
which they may become involved. In particular, our directors and officers and affiliates of our sponsor are currently officers, directors
or sponsors of other blank check companies, such as FinTech Acquisition Corp. IV, FinTech Acquisition Corp. V, FTAC Olympus Acquisition
Corp., FTAC Athena Acquisition Corp., FTAC Hera Acquisition Corp., each of which is seeking to complete a business combination. Any such
companies may present additional conflicts of interest in pursuing an acquisition target.
Potential investors should also be aware of the
following other potential conflicts of interest:
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•
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None of our officers and directors is required to commit his
or her full time to our affairs and, accordingly, may have conflicts of interest in allocating his or her time among various business
activities.
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•
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Each of the
holders of the founder shares and placement units has agreed that his, her or its founder
shares and placement shares, as applicable, will be subject to transfer restrictions and
that he, she or it will not sell or transfer such shares until the applicable forfeiture
provisions no longer apply. Holders of founder shares and placement shares have agreed to
waive their redemption rights with respect to their founder shares and placement shares,
as applicable, (i) in connection with the consummation of a business combination, (ii) in
connection with a stockholder vote to amend our amended and restated certificate of incorporation
to modify the substance or timing of our obligation to redeem 100% of our public shares if
we do not complete our initial business combination within 18 months from the completion
of this offering, or 21 months from the closing of this offering if we have executed a letter
of intent, agreement in principle or definitive agreement for our initial business combination
within 18 months from the closing of, and (iii) if we fail to consummate a business
combination within the 18 months period, which is extendable at our sponsor’s option
to up to 21 months as described herein, or if we liquidate prior to the expiration of the
18 month period, which is extendable at our sponsor’s option to up to 21 months as
described herein. The initial holders have also agreed to waive their redemption rights with
respect to public shares in connection with the consummation of a business combination and
in connection with a stockholder vote to amend our amended and restated certificate of incorporation
to modify the substance or timing of our obligation to redeem 100% of our public shares if
we do not complete our initial business combination within the 18 month period, which is
extendable at our sponsor’s option to up to 21 months as described herein. However,
our initial holders will be entitled to redemption rights with respect to any public shares
held by them if we fail to consummate a business combination or liquidate within the 18 month
period, which is extendable at our sponsor’s option to up to 21 months as described
herein. To the extent our holders of founder shares or placement shares transfer any of these
securities to certain permitted transferees, such permitted transferees will agree, as a
condition to such transfer, to waive these same redemption rights. If we do not complete
our initial business combination within such 18 month period, which is extendable at our
sponsor’s option to up to 21 months as described herein, the portion of the proceeds
of the sale of the placement units placed into the trust account will be used to fund the
redemption of our public shares. There will be no redemption rights or liquidating distributions
with respect to our founder shares, placement shares or placement warrants, which will expire
worthless if we do not consummate an initial business combination within 18 months of the
completion of this offering, or 21 months from the closing of this offering if we have
executed a letter of intent, agreement in principle or definitive agreement for our initial
business combination within 18 months from the closing of this offering but have not
completed our initial business combination within such 18-month period. Except as described
under “Principal Stockholders — Restrictions on Transfers of Founder Shares
and Placement Units”, the founder shares, placement units and their underlying securities
will not be transferable, assignable or salable.
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•
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Our officers and directors may have a conflict of interest with
respect to evaluating a particular business combination if the retention or resignation of any such officers and directors was included
by a target business as a condition to any agreement with respect to our initial business combination.
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•
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Our sponsor, officers and directors may participate in the formation
of, or become an officer or director of, any other blank check company prior to completion of our initial business combination. As a
result, our sponsor, officers or directors could have conflicts of interest in determining whether to present business combination opportunities
to us or to any other blank check company with which they may become involved. However, we do not believe that any potential conflicts
would materially affect our ability to complete our initial business combination.
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We are not prohibited from pursuing an initial
business combination with a company that is affiliated with holders of founder shares, our officers or directors or their affiliates.
Additionally, we are not prohibited from partnering, submitting joint bids, or entering into any similar transaction with holders of founder
shares, our officers or directors and their affiliates, in the pursuit of an initial business combination. The interests of our partners
in any such transaction may differ materially from ours. If we seek to complete an initial business combination with such a company or
we partner with such related persons in our pursuit of an initial business combination, we, or a committee of independent directors, would
obtain an opinion from an independent investment banking firm that is a member of FINRA or an independent accounting firm that such an
initial business combination is fair to our stockholders from a financial point of view. Furthermore, in no event will these related persons
be paid any finder’s fee, consulting fee or other compensation prior to, or for any services they render in order to effectuate,
the consummation of our initial business combination other than (i) repayment of loans made to us prior to the date of this prospectus
by our sponsor to cover offering-relating and organization expenses, (ii) repayment of any incremental loans which our sponsor, members
of our management team or any of their respective affiliates or other third parties may make to finance transaction costs in connection
with an intended initial business combination (provided that if we do not consummate an initial business combination, we may use working
capital held outside the trust account to repay such loaned amounts, but no proceeds from our trust account would be used for such repayment),
(iii) payments to our sponsor or its designee of a total of $30,000 per month for office space, administrative and shared personnel
support services, (iv) payment of certain consulting fees to persons engaged by an entity affiliated with certain of our directors
and officers, (v) at the closing of our initial business combination, a customary advisory fee to affiliates of our sponsor, in an
amount that constitutes a market standard advisory fee for comparable transactions and services provided, and (vi) reimbursement
for any out-of-pocket expenses related to identifying, investigation and completing an initial business combination, there will be no
finder’s fees, reimbursements or cash payments made to our sponsor, officers or directors or any entities with which they are affiliated.
We cannot assure you that any of the above mentioned
conflicts will be resolved in our favor. For a discussion of our policies and procedures relating to related party transactions, see “Certain
Relationships and Related Party Transactions — Related Party Policy.”
In the event
that we submit our initial business combination to our public stockholders for a vote, our sponsor and each of our initial stockholders
has agreed to vote their founder shares, placement shares and any public shares held by them in favor of our initial business combination.
Our sponsor and the other initial holders will own, upon completion of this offering and the private placement and assuming they buy
no shares in this offering (which they have indicated they do not intend to do), a total of 8,520,000 shares of Class B common stock
and placement shares, or 9,753,333 shares of Class B common stock and placement shares if the underwriter exercises its overallotment
option in full, representing approximately 27.9% and 27.8%, respectively, of our then-outstanding shares. Accordingly, 6,740,001 public
shares constituting 30.6%, assuming that the underwriter’s overallotment option is not exercised, of outstanding public shares
must be voted in favor of our initial business combination in order for it to be approved.
Limitation on Liability and Indemnification of Officers and Directors
Our amended and restated bylaws provide that our
officers and directors will be indemnified by us to the fullest extent authorized by applicable Delaware law. In addition, our amended
and restated certificate of incorporation provides that our directors will not be personally liable for monetary damages to us for breaches
of their fiduciary duty as directors, except to the extent such exemption from liability is not permitted under the DGCL.
We will enter into agreements with our officers
and directors to provide contractual indemnification in addition to the indemnification provided for in our amended and restated bylaws.
Our amended and restated bylaws also will permit us to secure insurance on behalf of any officer, director or employee for any liability
arising out of his or her actions, regardless of whether Delaware law would permit such indemnification. We will purchase a policy of
directors’ and officers’ liability insurance that insures our officers and directors against the cost of defense, settlement
or payment of a judgment in some circumstances and insures us against our obligations to indemnify our officers and directors.
These provisions may discourage stockholders from
bringing a lawsuit against our directors for breach of their fiduciary duty. These provisions also may have the effect of reducing the
likelihood of derivative litigation against officers and directors, even though such an action, if successful, might otherwise benefit
us and our stockholders. Furthermore, a stockholder’s investment may be adversely affected to the extent we pay the costs of settlement
and damage awards against officers and directors pursuant to these indemnification provisions.
We believe that these provisions, the insurance
and the indemnity agreements are necessary to attract and retain talented and experienced officers and directors.
Our Chairman’s Experience and Positions
with Other SPAC’s
Ms. Cohen has served as Chairman of the board
of directors for other SPAC’s, including, FinTech I, FinTech II, FinTech III, FinTech IV, FinTech V, and FinTech VI. Additionally,
Ms. Cohen has served as Chairman of the board of directors for FTAC Olympus, FTAC Athena, FTAC Hera, and Fintech Masala, LLC. We
believe that potential sellers of target businesses will view this experience as a positive factor in considering whether or not to enter
into a business combination with us and we believe the Ms. Cohen’s connections and experience will provide a strong pipeline
of potential acquisitions to our Company.
FinTech I
Ms. Cohen served as Chairman of the board
of directors of FinTech I, a former blank check company that raised $100.0 million in its initial public offering in February 2015
at an initial public offering price of $10.00 per share. On July 29, 2016, FinTech I completed its initial business combination when
it acquired FTS Holding Corporation, or FTS, a provider of payment processing solutions to merchants throughout the United States.
Under the terms of the acquisition, the stockholders
of FTS received $179.1 million in cash and 15,162,470 shares of FinTech I common stock. Outstanding options to purchase FTS
common stock were converted into options to purchase 3,463,950 shares of FinTech I common stock. The cash portion of the acquisition
consideration was financed through the issuance of $100.0 million of first lien debt, $40.0 million of second lien debt, the
issuance of 1.5 million shares of Series A preferred stock and 480,544 shares of common stock for an aggregate purchase
price of $37.5 million, and the issuance of 467,647 shares of common stock for a purchase price of $4.7 million. A portion
of the cash consideration was used to refinance the approximately $62 million in principal and interest outstanding at the acquisition
closing under FTS’s then existing revolving credit facility. Following the acquisition, the combined company had a substantial amount
of indebtedness, which consisted of an aggregate of $140.0 million outstanding under the new first and second lien credit facilities.
Following the acquisition, the former FTS stockholders
held approximately 54.6% of FinTech I common stock, while pre-acquisition FinTech I stockholders held approximately 43.6%, and the
equity investor held approximately 1.7%, of FinTech I common stock. Upon the closing of the acquisition, the pre-acquisition executive
officers of FinTech I resigned and were replaced by the executive officers of FTS and, the pre-acquisition directors of FinTech I
resigned, except for Ms. Cohen who continued as a director of the combined company, and were succeeded by directors designated pursuant
to the terms of the acquisition. No pre-acquisition executive officers or directors of FinTech I received any severance or other
payment or benefit in connection with their respective resignations, although they did retain founder shares issued to them for nominal
consideration in connection with the formation of FinTech I, representing approximately 5.8% of the combined company. FinTech I changed
its name to CardConnect Corp. at closing.
The common stock of CardConnect Corp. was traded
on the NASDAQ Global Market under the symbol “CCN” until CardConnect Corp. was acquired by First Data Corporation on July 6,
2017 for $15.00 per share in cash.
FinTech II
Ms. Cohen has served as Chairman of the board
of directors of FinTech II, a blank check company that raised $175.0 million in its initial public offering in January 2017
at an initial public offering price of $10.00 per share.
On December 19, 2017, FinTech II entered
into an Agreement and Plan of Merger (the “Merger Agreement”) by and among FinTech II, FinTech II Merger Sub Inc., a direct
wholly-owned subsidiary of FinTech II (“Merger Sub 1”), FinTech II Merger Sub 2 LLC, a direct wholly-owned subsidiary
of FinTech II (“Merger Sub 2” and together with Merger Sub 1, the “Merger Subs”), Intermex Holdings
II, Inc. (“Intermex”) and SPC Intermex Representative LLC (the “Representative”), which provides for
the acquisition of Intermex by FinTech II pursuant to the proposed merger of Merger Sub 1 with and into Intermex with Intermex continuing
as the initial surviving entity (the “First Merger”), immediately following which the initial surviving entity will be merged
(the “Second Merger,” and together with the First Merger, the “Merger”) with and into Merger Sub 2, with
Merger Sub 2 continuing as the surviving entity and a direct wholly owned subsidiary of FinTech II. The Merger was consummated on July 26,
2018 and the pre-acquisition executive officers and directors of FinTech II resigned. No pre-acquisition executive officers
or directors of FinTech II received any severance or other payment or benefit in connection with their respective resignations, although
they did retain founder shares issued to them for nominal consideration in connection with the formation of FinTech II.
The aggregate consideration paid in the Merger
consisted of (i) 17,477,682 shares of FinTech II common stock and (ii) $102.0 million in cash. In connection with
the closing of the Merger, FinTech II redeemed a total of 4,938,232 shares of its common stock at a redemption price of $10.086957
per share, resulting in a total payment to redeeming stockholders of approximately $49,811,733.84.
Immediately following the Merger, the former stockholders
of Intermex owned approximately 48.3% of FinTech II’s outstanding common stock, the former stockholders of FinTech II owned approximately
51.7% of FinTech II’s outstanding common stock (20.4% held by FinTech II’s initial stockholders). FinTech II changed its name
to International Money Express, Inc. at closing.
The common stock of International Money Express, Inc.
is currently traded on the NASDAQ Global Market under the symbol “IMXI.” Since January 1, 2021, the common stock of International
Money Express, Inc. has traded as high as $17.57 per share and as low as $13.85 per share.
FinTech III
Ms. Cohen has served as Chairman of the board
of directors of FinTech III, a blank check company that raised $345.0 million in its initial public offering in November 2018
at an initial public offering price of $10.00 per share.
On August 3, 2020, FinTech III entered into
an Agreement and Plan of Merger (the “Paya Merger Agreement”) by and among GTCR-Ultra Holdings, LLC (“Seller”),
GTCR Ultra-Holdings II, LLC (“Holdings”), FinTech Acquisition Corp. III Parent Corp. (“Parent”), FinTech
III, FinTech III Merger Sub Corp. (“Merger Sub”), GTCR/Ultra Blocker, Inc. (“Blocker”), and GTCR Fund XI/C
LP (“Blocker Seller”), which provided for, among other things, (a) Merger Sub to be merged with and into FinTech III
with FinTech III being the surviving corporation in the merger and a wholly owned subsidiary of Parent (the “Paya Merger”)
and (b) through a series of transactions, Seller and Blocker Seller to contribute to Parent all of the equity interests in Holdings
and Blocker in exchange for cash and shares of common stock of Parent (the “Contribution and Exchange” and together with the
Paya Merger and the other transactions contemplated by the Merger Agreement, the “Transactions”). The Transactions were consummated
on October 16, 2020 and the pre-acquisition executive officers and directors of FinTech III resigned. No pre-acquisition executive
officers or directors of FinTech III received any severance or other payment or benefit in connection with their respective resignations,
although they did retain founder shares issued to them for nominal consideration in connection with the formation of FinTech III.
The aggregate consideration paid in the Transactions
consisted of (i) $499.7 million in cash and 54.5 million shares of Parent’s common stock, and (ii) up to an
additional 14,000,000 shares of Parent’s common stock (the “Earnout Shares”), in the event that the closing sale
price of Parent’s common stock exceeds certain price thresholds for 20 out of any 30 consecutive trading days during the first five
years following the closing of the Transactions. The cash consideration was funded from the cash held in FinTech III’s trust account
(after permitted redemptions) and the proceeds of a private placement of FinTech Class A common stock, which closed immediately prior
to the Transactions.
In connection with the closing of the Transactions,
FinTech III redeemed a total of 5,696,643 shares of its Class A common stock at a redemption price of $10.22735046 per share,
resulting in a total payment to redeeming stockholders of $58,261,564.43.
Immediately following the Transactions, the former
stockholders of Holdings owned approximately 47.3% of Parent’s outstanding common stock and the former stockholders of FinTech III
(including the PIPE investors) owned approximately 52.7% of Parent’s outstanding common stock (8.4% held by FinTech III’s
initial stockholders). Parent changed its name to Paya Holdings Inc. at closing.
The shares of common stock and warrants of Paya
Holdings Inc. are currently traded on the NASDAQ Global Market under the symbols “PAYA” and “PAYAW,” respectively.
Since October 19, 2020, the common stock of Paya Holdings Inc. has traded as high as $15.00 per share and as low as $10.38 per share.
FinTech IV
Ms. Cohen has served as Chairman of the board
of directors of FinTech IV, a blank check company that raised $230 million in its initial public offering in September 2020
at an initial public offering price of $10.00 per share.
On December 29, 2020, FinTech IV entered
into a Business Combination Agreement (the “Business Combination Agreement”), by and among FinTech IV, FinTech Investor Holdings
IV, LLC, a Delaware limited liability company, Fintech Masala Advisors, LLC, a Delaware limited liability company, PWP Holdings LP, a
Delaware limited partnership (“PWP”), PWP GP LLC, a Delaware limited liability company and the general partner of PWP (“PWP
GP”), PWP Professional Partners LP, a Delaware limited partnership and a limited partner of PWP (“Professionals”), and
Perella Weinberg Partners LLC, a Delaware limited liability company and the general partner of Professionals (“Professionals GP”)
pursuant to which, among other things, FinTech IV will acquire interests in PWP, which will become jointly-owned by FinTech IV, Professionals,
and certain existing partners of PWP and following the Closing will serve as FinTech IV’s operating partnership as part of an umbrella
limited partnership C-corporation (Up-C) structure.
Pursuant to the Business Combination Agreement,
subject to certain conditions set forth therein, in connection with the closing of the transactions contemplated by the Business Combination
Agreement:
(i) FinTech IV will
acquire newly-issued common units of PWP in exchange for cash in an amount equal to the outstanding excess cash balances of FinTech
IV (including the proceeds from the PIPE equity financing that will close contemporaneously with the FinTech IV Business Combination)
as of Closing net of redemptions elected by FinTech IV’s public stockholders pursuant to their redemption rights, with the number
of such interests to be issued to be calculated based on the formula set forth in the Business Combination Agreement;
(ii) Professionals will
contribute the equity interests of PWP GP, the general partner of PWP, to FinTech IV;
(iii) FinTech IV will issue (A) to
Professionals, new shares of Class B-1 common stock, which will have 10 votes per share (for so long as Professionals or its
limited partners as of the Closing maintain ownership of at least 10% of the issued and outstanding Class A common units of PWP,
otherwise such Class B-1 common stock shall have one vote per share) and (B) to investor limited partners of PWP, new shares
of Class B-2 common stock, which will have one vote per share, with the number of shares of such common stock to be issued to
equal the number of common units of PWP that will be held by Professionals and such investor limited partners, respectively, following
the Closing; and
(iv) FinTech IV will repay certain
indebtedness of PWP, pay certain expenses, retain up to $10 million of cash on its balance sheet, and subject to the availability
of transaction proceeds, FinTech IV will first redeem certain limited partnership interests held by certain electing third party investor
limited partners of PWP and second redeem certain electing non-working limited partners of Professionals (collectively with the other
transactions contemplated by the Business Combination Agreement, the “FinTech IV Business Combination”).
The FinTech IV Business Combination was consummated
on June 24, 2021 and the pre-acquisition executive officers and directors of FinTech IV resigned. No pre-acquisition executive
officers or directors of FinTech IV received any severance or other payment or benefit in connection with their respective resignations,
although they did retain founder shares issued to them for nominal consideration in connection with the formation of FinTech IV.
FinTech V
Ms. Cohen has served as Chairman of the board
of directors of FinTech V, a blank check company that raised $250 million in its initial public offering in December 2020 at
an initial public offering price of $10.00 per share.
On March 16, 2021, FinTech V entered into
an Agreement and Plan of Merger (the “FTV Merger Agreement”) among eToro Group Ltd., a company organized under the laws of
the British Virgin Islands (“eToro”), Buttonwood Merger Sub Corp., a Delaware corporation and a direct, wholly-owned subsidiary
of eToro (“Merger Sub”), and FinTech V, which provides for, among other things, the merger of Merger Sub with and into FinTech
V (the “FTV Merger”), with FinTech V surviving as a wholly-owned subsidiary of eToro (the “Business Combination”).
At the closing of the Business Combination and the effective time of the FTV Merger (the “FTV Effective Time”), the stockholders
of FinTech V will receive certain of the common shares, no par value, of eToro (“eToro Common Shares”), and eToro will list
as a publicly traded company on Nasdaq and will continue to conduct the social trading platform business conducted by eToro prior to the
Business Combination.
The Business Combination contemplates an implied
enterprise valuation of eToro of approximately $9.6 billion at the time of the signing of the FTV Merger Agreement. Except with respect
to the Price Adjustment Rights (as defined below), no purchase price adjustments will be made in connection with the closing of the transactions
contemplated by the FTV Merger Agreement. Assuming no public shares are redeemed in connection with the Business Combination, immediately
following the FTV Effective Time, FinTech V’s public stockholders will own approximately 2.4% of the eToro Common Shares; the FinTech
V sponsor will own approximately 0.8% of the eToro Common Shares; the stockholders of eToro as of immediately prior to the Business Combination
(the “Legacy eToro Stockholders”) will own approximately 91% of the eToro Common Shares; and the PIPE investors will own approximately
6.2% of the eToro Common Shares. The pro forma ownership percentages described in the foregoing sentence exclude FinTech V’s public
warrants and the eToro Common Shares underlying the Price Adjustment Rights. All of the eToro Common Shares to be issued to the FinTech
V sponsor in the Business Combination will be subject to contractual restrictions on transfer and only released upon the occurrence of
certain time-based, stock-price performance or other events.
Immediately prior to the FTV Effective Time, subject
to the receipt of applicable approvals of eToro stockholders, (i) each outstanding preferred share of eToro (“eToro Preferred
Shares”) will be converted into eToro Common Shares in accordance with, and based on the applicable conversion ratio set forth in,
the memorandum and articles of association of eToro (the “Conversion”), (ii) immediately following the Conversion, all
outstanding eToro Common Shares, and all eToro Common Shares underlying vested options to acquire eToro Common Shares (“Vested Options”),
will be reclassified into (together, the “Reclassification”) (x) eToro Common Shares and (y) certain rights to receive,
without any further action required by the holders of such rights, in the aggregate, up to an additional 40,000,000 eToro Common Shares,
50% of which will automatically vest and be exercised if, at any time on or prior to the last day of the 30th month following the Closing
Date (as defined below), the stock price of the eToro Common Shares is greater than or equal to $15.00 over any 20 trading days within
any 30 trading day period, and 50% which will automatically vest and be exercised if, at any time on or prior to the last day of the 60th
month following the Closing Date, the stock price of the eToro Common Shares is greater than or equal to $17.50 over any 20 trading days
within any 30 trading day period, subject in either case to the earlier automatic vesting and exercise immediately prior to the occurrence
of a liquidation, merger, capital stock exchange, or other similar transaction that results in all of eToro’s stockholders having
the right to exchange their eToro Common Shares for cash, securities or other property (the “Price Adjustment Rights”), and
(iii) immediately following the Reclassification, eToro will effect a stock split of each then-outstanding eToro Common Share
and each eToro Common Share underlying any outstanding options to acquire eToro Common Shares, whether vested or unvested (“eToro
Options”), into such number of eToro Common Shares determined by multiplying such eToro Common Shares by a “Split Factor”
that is equal to the result of (A) $9,301,000,000 divided by (B) the total number of issued and outstanding eToro Common Shares,
plus the total number of eToro Common Shares underlying any outstanding eToro options to acquire eToro Common Shares, with the result
of such calculation divided by (C) $10.00, all as further described in and as calculated in accordance with the FTV Merger Agreement
(the “Stock Split” and, together with the Conversion and the Reclassification, the “Capital Restructuring”). As
part of the Business Combination and on the terms and subject to the conditions set forth in the FTV Merger Agreement, eToro may in its
discretion elect to commence a self-tender offer (“Self-Tender Offer”) to purchase up to $300,000,000 in eToro Common
Shares from the Legacy eToro Stockholders, such purchase in such Self-Tender Offer to be consummated, if elected, immediately prior
to the closing of the Business Combination.
At the FTV Effective Time, (i) each share
of FinTech V Class A common stock issued and outstanding immediately prior to the Effective Time (after giving effect to any redemptions
by FinTech V’s public stockholders), by virtue of the FTV Merger and upon the terms and subject to the conditions set forth in the
FTV Merger Agreement, will be converted into and will for all purposes represent only the right to receive one eToro Common Share (the
“Per Share Merger Consideration”), (ii) after giving effect to the Sponsor Forfeiture (as defined below), each share
of FinTech V Class B common stock issued and outstanding immediately prior to the FTV Effective Time, by virtue of the FTV Merger
and upon the terms and subject to the conditions set forth in the FTV Merger Agreement, will be converted into and will for all purposes
represent only the right to receive the Per Share Merger
Consideration (the aggregate number of eToro Common
Shares into which shares of FinTech V Class A common stock and FinTech V Class B common stock are converted into pursuant to
the FTV Merger Agreement, the “FTV Merger Consideration”) and (iii) all of the shares of FinTech V Class A common
stock and FinTech V Class B common stock converted into the right to receive the FTV Merger Consideration will no longer be outstanding
and will cease to exist, and each holder of any shares of FinTech V Class A common stock or FinTech V Class B common stock will
thereafter cease to have any rights with respect to such securities, except the right to receive the applicable portion of the FTV Merger
Consideration. The FTV Merger Consideration does not include any, or any rights to receive any consideration in respect of, the Price
Adjustment Rights.
After giving effect to the Sponsor Forfeiture,
FinTech V’s outstanding warrants to purchase one share of FinTech V Class A common stock shall be converted into the right
to receive an equal number of warrants to purchase one eToro Common Share (“eToro Warrants”).
Consummation of the transactions contemplated
by the FTV Merger Agreement is subject to customary mutual conditions of the respective parties. The FTV Merger Agreement may be terminated
at any time prior to the consummation of the Business Combination by mutual written consent of FinTech V and eToro and in certain other
limited circumstances, including if the closing of the transactions contemplated in the FTV Merger Agreement has not occurred by March 30,
2022. The FTV Merger Agreement has been approved by FinTech V’s board of directors, and the board has recommended that FinTech V’s
stockholders adopt the FTV Merger Agreement and approve the Business Combination.
FinTech VI
Ms. Cohen has served as Chairman of the board
of directors of FinTech VI, a blank check company that raised $250 million in its initial public offering in June 2021 at an
initial public offering price of $10.00 per share.
FTAC Olympus
Ms. Cohen has served as Chairman of the board
of directors of FTAC Olympus, a blank check company, that raised approximately $754.7 million in its initial public offering in August 2020
at an initial public offering price of $10.00 per share.
On February 3, 2021, FTAC Olympus entered
into an Agreement and Plan of Reorganization (the “Reorganization Agreement”) by and among FTAC Olympus, New Starship Parent
Inc., a Delaware corporation (“New Starship”), Starship Merger Sub I Inc., a Delaware corporation and a direct, wholly-owned subsidiary
of New Starship (“First Merger Sub”), Starship Merger Sub II Inc., a Delaware corporation and a direct, wholly-owned subsidiary
of New Starship (“Second Merger Sub” and, together with First Merger Sub, the “Merger Subs”) and Payoneer Inc.,
a Delaware corporation (“Payoneer”).
Pursuant to the Reorganization Agreement, (i) First
Merger Sub will merge with and into FTAC Olympus (the “FTOC Merger”), with FTAC Olympus surviving as a direct wholly owned
subsidiary of New Starship and (ii) immediately thereafter, Second Merger Sub will merge with and into Payoneer (the “Payoneer
Merger” and, together with the FTOC Merger, the “Mergers”) with Payoneer surviving as a direct wholly owned subsidiary
of New Starship (the transactions contemplated by the Reorganization Agreement, the “Reorganization”).
The cash component of the purchase price to be
paid to the equity holders of Payoneer is expected to be funded by FTAC Olympus’ cash in trust (minus any redemptions by FTAC Olympus’
existing public stockholders), as well as by a $300 million private placement. The balance of the consideration payable to the existing
Payoneer equity holders will consist of shares of common stock of New Starship. Existing Payoneer equity holders have the potential to
receive an earnout of up to 30 million additional shares of common stock of New Starship if certain stock price targets are met as
set forth in the Reorganization Agreement.
The Reorganization was consummated on June 25,
2021 and the pre-acquisition executive officers and directors of FTAC Olympus resigned. No pre-acquisition executive officers
or directors of FTAC Olympus received any severance or other payment or benefit in connection with their respective resignations, although
they did retain founder shares issued to them for nominal consideration in connection with the formation of FTAC Olympus.
FTAC Athena
Ms. Cohen has served as Chairman of the board
of directors of FTAC Athena, a blank check company that raised approximately $250 million in its initial public offering in August 2020
at an initial public offering price of $10.00 per share.
On
August 3, 2021, FTAC Athena entered into a Business Combination Agreement (the “Business Combination Agreement”)
by and between the Company and Pico Quantitative Trading Holdings LLC (“Pico”), pursuant to which, among other things,
FTAC Athena will acquire certain interests in Pico, which will become jointly owned by FTAC Athena and the existing members of Pico and
following the Closing (as defined below) will serve as FTAC Athena’s operating partnership as part of an Up-C structure (the transactions
contemplated by the Business Combination Agreement, the “Transactions”), as described in further detail below.
Pursuant
to the Business Combination Agreement, FTAC Athena will acquire 100% of the newly-created voting Class A common units of Pico
in exchange for FTAC Athena’s cash in trust as of Closing plus up to $200 million from a private placement (net of redemptions by
FTAC Athena’s existing stockholders). The Business Combination Agreement includes an outside closing date of February 28, 2022.
FTAC Hera
Ms. Cohen has served as Chairman of the board
of directors of FTAC Hera, a blank check company that raised approximately $851 million in its initial public offering in March 2021
at an initial public offering price of $10.00 per share.
Our Vice Chairman and President and CEO
Mark Tercek is Vice Chairman of our Board and
Bracebridge H. Young, Jr. is our President and CEO, and between the two of them they have substantial experience as investors and
operators in the ESG sector, as well broad array of experience in mergers and acquistions and capital markets. We believe that potential
sellers of target businesses will view this experience as a positive factor in considering whether or not to enter into a business combination
with us and we believe the Mr. Tercek’s and Mr. Young’s connections in the ESG sector will provide a strong pipeline
of potential acquisitions to our Company.
Sponsor Partnership with Fintech Masala
Emerald ESG Sponsor, LLC is a partnership between
Fintech Masala, LLC (“Fintech Masala”) and our Vice Chairman of the Board, Mark Tercek and Bracebridge Young Jr., and
President and CEO. Additionally, our Chairman of the Board, Betsy Z. Cohen, is also the Chairman of the board of directors of Fintech
Masala. Emerald ESG Sponsor, LLC unites the knowledge and experience of Fintech Masala as a technology investor and SPAC sponsor with
the entrepreneurial and ESG experience of our Vice Chairman and President and CEO.
Fintech Masala
FinTech Masala specializes in providing growth
capital to technology and financial services technology companies via special purpose acquisition vehicles and venture investments. The
FinTech Masala team is comprised of principals and advisers with extensive experience in operating public and private companies in the
technology and financial services sectors, mergers and acquisitions and venture investors. As of July 2021, the Managing Members
of FinTech Masala have been affiliated with the sponsor for FinTech I, FinTech II, FinTech III, FinTech IV, FinTech V, FTAC Olympus, FTAC
Athena, FTAC Hera, FTAC Parnassus Acquisition Corp. and FinTech VI (together the “FinTech Masala SPACs”).
Of the FinTech Masala SPACs, five have consummated
initial business combinations (FinTech Acquisition Corp., FinTech Acquisition Corp. II, FinTech Acquisition Corp. III, FinTech Acquisition
Corp. IV and FTAC Olympus Acquisition Corp.) and two others have announced an agreement for initial business combinations that have yet
to close (FinTech Acquisition Corp. V and FTAC Athena Acquisition Corp.).
Several members of Fintech Masala’s management
team, including our Chairman, have served or are serving as executive officers and/or directors for the Fintech Masala SPACs. We believe
that potential sellers of target businesses will view the fact that members of our board of directors and management team have successfully
closed multiple business combinations with vehicles similar to our company as a positive factor in considering whether or not to enter
into a business combination with us. However, past performance is not a guarantee of success with respect to any business combination
we may consummate.
PRINCIPAL STOCKHOLDERS
The following table sets forth information regarding
the beneficial ownership of our common stock as of the date of this prospectus, and as adjusted to reflect the sale of our common stock
included in the units offered by this prospectus, by:
|
|
•
|
each person known by us to be the beneficial owner of more than
5% of our outstanding shares of common stock;
|
|
|
•
|
each of our officers, directors and director nominees that beneficially
owns shares of our common stock; and
|
|
|
•
|
all our officers, directors and director nominees as a group.
|
Unless otherwise indicated, we believe that all
persons named in the table have sole voting and investment power with respect to all shares of common stock beneficially owned by them.
The following table does not reflect record or beneficial ownership of the placement warrants as these warrants are not exercisable within
60 days of the date of this prospectus.
|
|
|
Prior
to the Offering(1)
|
|
|
Following
the Offering(2)(3)
|
|
|
Name
and Address of Beneficial Owner(4)
|
|
Number
of
shares of
common stock
|
|
|
Percentage
of
outstanding
common stock
|
|
|
Number
of
shares of
common stock
|
|
|
Percentage
of
outstanding
common stock
|
|
|
Betsy
Cohen(5)
|
|
|
8,763
,333
|
|
|
|
100
|
%
|
|
|
8,520,000
|
|
|
|
27.9
|
%
|
|
Tensie Whelan
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Therese Rein
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Andrew Hohns
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Lisa Shalett
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Mark Tercek
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Bracebridge H. Young, Jr.
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Doug Listman
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
All directors, director nominees and officers as a
group (8 persons)
|
|
|
8,763,333
|
|
|
|
100
|
%
|
|
|
8,520,000
|
|
|
|
27.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Greater than 5% Beneficial Owners
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Emerald
ESG Sponsor, LLC(6)
|
|
|
8,763,333
|
|
|
|
100
|
%
|
|
|
8,520,000
|
|
|
|
27.9
|
%
|
|
|
(1)
|
Includes an aggregate
of 1,133,333 founder shares subject to forfeiture to the extent that the overallotment option
is not exercised by the underwriter.
|
|
|
(2)
|
Assumes (i) the
underwriter’s overallotment option has not been exercised and, as a result, an aggregate
of 1,133,333 founder shares have been forfeited, and (ii) that 890,000 placement
units have been purchased by the sponsor.
|
|
|
(3)
|
Total shares outstanding
after the offering includes 7,630,000 founder shares and the sale of 890,000 placement units
subject to subscription agreements in a private placement to be completed simultaneously
with this offering.
|
|
|
(4)
|
Unless otherwise
noted, the business address of each of the persons and entities listed above is 2929 Arch
Street, Suite 1703, Philadelphia, PA 19104-2870.
|
|
|
(5)
|
Shares are held
directly by Emerald ESG Sponsor, LLC, a Delaware limited liability company which is managed
by Betsy Cohen. Ms. Cohen disclaims beneficial ownership of these securities, except
to the extent of her pecuniary interest therein. See “Certain Relationships and Related
Party Transactions” for additional information.
|
|
|
(6)
|
Shares are held by Emerald ESG Sponsor, LLC, a limited liability company which
is managed by Betsy Cohen. Following completion of this offering, Emerald ESG Sponsor, LLC expects to distribute 4,703,333 founder shares
(733,333 of which are subject to forfeiture to the extent that the overallotment option is not exercised by the underwriter) to Emerald
ESG Advisors, LLC, a limited liability company which is managed by Ms. Cohen. Emerald ESG Sponsor, LLC expects to purchase 890,000 placement
units in the private placement.
|
After giving effect to
the issuance of founder shares and private placement of 890,000 placement units (or 990,000 if the underwriter’s overallotment
option is exercised in full) to our sponsor, our initial stockholders will own approximately 27.9% of the outstanding common stock following
the offering or 27.8% if the underwriter’s overallotment option is exercised in full (assuming that holders of founder shares and
purchasers of the placement units do not purchase any public shares in this offering or the public market). Because of this ownership
block, our initial stockholders and the holders of placement shares will have significant influence over the outcome of all matters requiring
approval by our stockholders, including the election of directors, amendments to our amended and restated certificate of incorporation
and approval of significant corporate transactions other than approval of our initial business combination.
To the extent the underwriter
does not exercise the overallotment option, up to an aggregate of 1,133,333 founder shares will be forfeited. Our initial holders will
be required to forfeit only a number of founder shares necessary so that the collective number of founder shares represents 25% of the
aggregate of our founder shares, placement shares and our public shares, in each case after giving effect to the offering and the exercise,
if any, of the underwriter’s overallotment option.
Our sponsor has committed
to purchase an aggregate of 890,000 placement units (or 990,000 if the underwriter’s overallotment option is exercised in full)
at the price of $10.00 per unit, for an aggregate purchase price of $8,900,000 (or $9,900,000 if the underwriter’s overallotment
option is exercised in full), in a private placement that will occur simultaneously with the completion of this offering. Each placement
unit contains one share of Class A common stock and one-half of one warrant. Each whole warrant contained in a placement unit entitles
the holder to purchase one whole share of our Class A common stock at $11.50 per share. There will be no redemption rights or liquidating
distributions with respect to our founder shares, placement units or warrants, which will expire worthless if we do not complete our
initial business combination within 18 months from the completion of this offering, or 21 months from the closing of this offering if
we have executed a letter of intent, agreement in principle or definitive agreement for our initial business combination within 18 months
from the closing of. The placement units and their underlying securities are subject to the transfer restrictions described below under
“— Restrictions on Transfers of Founder Shares and Placement Units”).The placement warrants will not be redeemable
by us so long as they are held by our sponsor or its permitted transferees. If the placement warrants are held by holders other than
our sponsor or its permitted transferees, the placement warrants will be redeemable by us and exercisable by the holders on the same
basis as the warrants included in the units being sold in this offering. The placement warrants may also be exercised by our sponsor
or its permitted transferees on a cashless basis. Otherwise, the placement warrants have terms and provisions that are identical to those
of the warrants being sold as part of the units in this offering.
Our sponsor and executive officers are deemed
to be our “promoters” as such term is defined under the federal securities laws.
Restrictions on Transfers of Founder Shares and Placement Units
The founder shares, placement units, placement
shares, placement warrants and any shares of Class A common stock issued upon conversion or exercise thereof are each subject to
transfer restrictions pursuant to lock-up provisions in the agreements to be entered into by our sponsor and our officers and directors.
Those lock-up provisions provide that such securities are not transferable or salable (i) in the case of the founder shares, (a) with
respect to 25% of such shares, until consummation of our initial business combination, (b) with respect to 25% of such shares, when
the closing price of our Class A common stock exceeds $12.00 for any 20 trading days within a 30-trading day period following
the consummation of our initial business combination, (c) with respect to 25% of such shares, when the closing price of our Class A
common stock exceeds $13.50 for any 20 trading days within a 30-trading day period following the consummation of our initial
business combination, and (d) with respect to 25% of such shares, when the closing price of our Class A common stock exceeds
$15.00 for any 20 trading days within a 30-trading day period following the consummation of our initial business combination or earlier,
in any case, if, following a business combination, we complete a liquidation, merger, capital stock exchange, reorganization or other
similar transaction that results in all of our stockholders having the right to exchange their shares of common stock for cash, securities
or other property, and (ii) in the case of the placement units, placement shares, placement warrants and any shares of Class A
common stock issued upon exercise thereof, until 30 days after the completion of our initial business combination, except in each
case (a) to our officers, our directors, or the initial stockholders, (b) to an affiliate or immediate family member of any
of our officers, directors, or initial stockholders, (c) to any member, officer or director of our sponsor, or any immediate family
member, partner, affiliate or employee of a member of our sponsor, (d) by gift to any permitted transferee under any of the immediately
preceding subsections (a) through (c), a trust, the beneficiaries of which are one or more permitted transferees under any of the
immediately preceding subsections (a) through (c), or a charitable organization, (e) by virtue of laws of descent and distribution
upon death of any of our officers, our directors, the initial stockholders, or members of our sponsor, (f) pursuant to a qualified
domestic relations order, (g) in the event of our liquidation prior to consummation of our initial business combination, (h) by
virtue of the laws of Delaware, our sponsor’s limited liability company agreement upon dissolution of any sponsor, (i) subsequent
to our initial business combination, upon and in connection with a liquidation, merger, stock exchange or other similar transaction which
results in all of our stockholders having the right to exchange their shares of common stock for cash, securities or other property, (j) subsequent
to our initial business combination, in the event of a consolidation merger, stock exchange or similar transaction in which the company
is the surviving entity that results in a change in the majority of our board of directors or management team, and (k) through private
sales or transfers made in connection with any forward purchase agreement or similar arrangement or in connection with the consummation
of our initial business combination at prices no greater than the price at which the placement shares or warrants were originally purchased;
provided, however, that in the case of clauses (a) through (f), (h), and (k) these permitted transferees must enter into a written
agreement agreeing to be bound by these transfer restrictions. Notwithstanding the foregoing, the letter agreement provides that, in connection
with an initial business combination, the initial holders may transfer, assign or sell their founder shares with our consent to any person
or entity that agrees in writing to be bound by the transfer restrictions set forth in the prior sentence, and any such transferee shall
be a permitted transferee under the letter agreement.
Registration Rights
The holders of the founder shares, placement units
(including securities contained therein) and warrants that may be issued upon conversion of loans made by our sponsor or one of its affiliates
will have registration rights to require us to register a sale of any of our securities held by them (in the case of the founder shares,
only after conversion to our Class A common stock) pursuant to a registration rights agreement to be signed prior to or on the effective
date of this offering. These holders will be entitled to make up to three demands, excluding short form registration demands, that we
register such securities for sale under the Securities Act. In addition, these holders will have “piggy-back” registration
rights to include such securities in other registration statements filed by us and rights to require us to register for resale such securities
pursuant to Rule 415 under the Securities Act. However, the registration rights agreement provides that we will not permit any registration
statement filed under the Securities Act to become effective until termination of the applicable lock-up period, which occurs: (i) in
the case of the founder shares, (a) with respect to 25% of such shares, upon consummation of our initial business combination, (b) with
respect to 25% of such shares, when the closing price of our Class A common stock exceeds $12.00 for any 20 trading days within a
30-trading day period following the consummation of our initial business combination, (c) with respect to 25% of such shares, when
the closing price of our Class A common stock exceeds $13.50 for any 20 trading days within a 30-trading day period following the
consummation of our initial business combination, and (d) with respect to 25% of such shares, when the closing price of our Class A
common stock exceeds $15.00 for any 20 trading days within a 30-trading day period following the consummation of our initial business
combination or earlier, in any case, if, following a business combination, we complete a liquidation, merger, stock exchange or other
similar transaction that results in all of our public stockholders having the right to exchange their shares of Class A common stock
for cash, securities or other property; and (ii) in the case of the placement warrants and the respective Class A common stock
underlying such warrants, 30 days after the completion of our initial business combination.
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
On June 2, 2021,
Emerald ESG Sponsor, LLC purchased 7,992,750 founder shares for an aggregate purchase price of $25,000, and on October 14, 2021,
we effected a 1.1014-for-1.0 stock split of our common stock, so that our sponsor owned an aggregate of 8,803,333 founder shares. On
November 12, 2021, we effected a 0.9955-for-1.0 stock split of our common stock, so that our sponsor owns an aggregate of 8,763,333
founder shares. If the underwriter determines the size of the offering should be increased, a stock dividend would be effectuated so
that founder shares represent 25% of the aggregate of our founder shares, the placement shares and our issued and outstanding public
shares after this offering.
If the underwriter do
not exercise all or a portion of its overallotment option, holders of founder shares have agreed, pursuant to a written agreement with
us that they will forfeit up to an aggregate of 1,133,333 founder shares in proportion to the portion of the underwriter’s overallotment
option that was not exercised.
Our sponsor has committed
to purchase an aggregate of 890,000 placement units (or 990,000 if the underwriter’s overallotment option is exercised in full)
at the price of $10.00 per unit, for an aggregate purchase price of $8,900,000 (or $9,900,000 if the underwriter’s overallotment
option is exercised in full), in a private placement that will occur simultaneously with the completion of this offering. The placement
warrants will be identical to the warrants sold in this offering, except that if held by our sponsor or its permitted transferees, they (including the common stock issuable upon exercise of these warrants) may not,
subject to certain limited exceptions (as described in more detail under “Principal Stockholders — Restrictions on Transfers
of Founder Shares and Placement Units”), be transferred, assigned or sold by the holders until 30 days after the consummation
of our initial business combination. There will be no redemption rights or liquidating distributions with respect to our founder shares,
placement shares or warrants, which will expire worthless if we do not complete an initial business combination.
The placement units will be sold in a private
placement pursuant to Section 4(a)(2) or Regulation D of the Securities Act and will be exempt from registration requirements
under the federal securities laws. As such, the holders of the placement warrants included in the placement units will be able to exercise
such placement warrants even if, at the time of exercise, an effective registration statement and a current prospectus relating to the
common stock issuable upon exercise of such warrants is not available. Other than (i) repayment of loans made to us prior to the
date of this prospectus by our sponsor to cover offering-related and organization expenses, (ii) repayment of any loans which our
sponsor or one of its affiliates may make to finance transaction costs in connection with an intended initial business combination, (iii) payments
to our sponsor or its designee of a total of $30,000 per month for office space, administrative and shared personnel support services,
(iv) payment of certain consulting fees to persons engaged by an entity affiliated with certain of our directors and officers, (v) at
the closing of our initial business combination, a customary advisory fee to affiliates of our sponsor, in an amount that constitutes
a market standard advisory fee for comparable transactions and services provided, and (vi) to reimburse our sponsor for any out-of-pocket
expenses related to identifying, investigating and completing an initial business combination, no compensation or fees of any kind, including
finder’s fees, consulting fees or other similar compensation, will be paid to our initial stockholders, officers, directors or any
of their respective affiliates, prior to or with respect to our initial business combination (regardless of the type of transaction that
it is). Prior to the appointment of our audit committee, our independent directors must approve all payments in excess of $5,000 to any
initial holder, our directors and officers or entities with which they are affiliated. Following the appointment of an audit committee,
the audit committee will approve such payments.
As of September 30,
2021, we have $68,133 in borrowings outstanding under a promissory note by our sponsor to be used for a portion of the
expenses of this offering.
Commencing on the date
our securities are first listed on Nasdaq, we will pay an amount equal to $30,000 per month to our sponsor or its designee for office
space, administrative and shared personnel support services. Upon completion of our initial business combination or our liquidation,
we will cease paying these monthly fees. Accordingly, in the event the consummation of our initial business combination takes the maximum
18 months (assuming our sponsor does not exercise its option to extend as described herein), our sponsor will be paid a total of $540,000
($30,000 per month) and will be entitled to be reimbursed for any out-of-pocket expenses.
As more fully discussed in the section of this
prospectus entitled “Management — Conflicts of Interest,” if any of our officers or directors becomes aware of
an initial business combination opportunity that falls within the line of business of any entity to which he or she has then-current fiduciary
or contractual obligations, he or she will honor his or her fiduciary or contractual obligations to present such business combination
opportunity to such other entity. Our officers and directors currently have certain relevant fiduciary duties or contractual obligations
that may take priority over their duties to us.
CCM, a division of
J.V.B. Financial Group, LLC, itself a broker dealer subsidiary of Cohen & Company Inc. (of which our Chairman’s son is
also Chairman of the Board and a controlling shareholder), is acting as our independent financial advisor in connection with this
offering, for which it will receive customary fees. Affiliates of CCM have and manage investment vehicles with a passive investment
in our sponsor, any of which may purchase units in this offering. CCM is engaged to represent our interests only, is independent of
the underwriter and is not a party to any securities purchase agreement with us, the underwriter or investors in relation to this
offering; it is acting as an independent financial adviser as defined in FINRA Rule 5110(j)(9). CCM is not participating (within the
meaning of FINRA Rule 5110(j)(16)) in this offering, as such it is not involved in the preparation of the offering document, acting
as an underwriter and will not sell or offer to sell any securities in this offering, nor will it identify or solicit potential
investors in this offering.
Other than the foregoing, no compensation of any
kind, including any finder’s fee, reimbursement, consulting fee or monies in respect of any payment of a loan, will be paid by us
to our sponsor, officers and directors, or any affiliate of our sponsor or officers, prior to, or in connection with any services rendered
in order to effectuate, the consummation of an initial business combination (regardless of the type of transaction that it is). However,
these individuals will be reimbursed for any out-of-pocket expenses incurred in connection with activities on our behalf such as identifying
potential target businesses and performing due diligence on suitable business combinations. Our audit committee will review on a quarterly
basis all payments that were made to our sponsor, officers, directors or our or their affiliates and will determine which expenses and
the amount of expenses that will be reimbursed. There is no cap or ceiling on the reimbursement of out-of-pocket expenses incurred by
such persons in connection with activities on our behalf.
Emerald ESG Sponsor,
LLC has agreed that, if the trust account is liquidated without the consummation of a business combination, it will indemnify us to the
extent any claims by a third party for services rendered or products sold to us, or any claims by a prospective target business with
which we have discussed entering into a transaction agreement, reduce the amount of funds in the trust account to below $10.10 per public
share, except for any claims by any third party who executed a waiver of any and all rights to seek access to the trust account, regardless
of whether such waiver is enforceable, and except for claims arising from our obligation to indemnify the underwriter of this offering
pursuant to the underwriting agreement for this offering. We have not independently verified whether Emerald ESG Sponsor, LLC has sufficient
funds to satisfy its indemnity obligations, we have not asked it to reserve for such obligations and we believe that its only assets
are securities of our company. Therefore, we cannot assure you that Emerald ESG Sponsor, LLC will be able to satisfy those obligations.
We believe the likelihood of Emerald ESG Sponsor, LLC having to indemnify the trust account is limited because we will endeavor to have
all third parties that provide products or services to us and prospective target businesses execute agreements with us waiving any right,
title, interest or claim of any kind in or to monies held in the trust account.
In order to fund working capital deficiencies
or finance transaction costs in connection with an intended initial business combination, our sponsor or an affiliate of our sponsor or
certain of our officers and directors may, but are not obligated to, loan us funds as may be required. Up to $2,000,000 of such loans
may be convertible into units at a price of $10.00 per unit at the option of the lender at the time of the business combination. The units
would be identical to the placement units sold in the private placement.
After our initial business combination, members
of our management team who remain with us may be paid consulting, management or other fees from the combined company with any and all
amounts being fully disclosed to our stockholders, to the extent then known, in the tender offer or proxy solicitation materials, as applicable,
furnished to our stockholders. It is unlikely the amount of such compensation will be known at the time of distribution of such tender
offer materials or at the time of a stockholder meeting held to consider our initial business combination, as applicable, as it will be
up to the directors of the post-combination business to determine executive and director compensation.
All ongoing and future transactions between us
and any member of our management team or his or her respective affiliates will be on terms believed by us at that time, based upon other
similar arrangements known to us, to be no less favorable to us than are available from unaffiliated third parties. It is our intention
to obtain estimates from unaffiliated third parties for similar goods or services to ascertain whether such transactions with affiliates
are on terms that are no less favorable to us than are otherwise available from such unaffiliated third parties. If a transaction with
an affiliated third party were found to be on terms less favorable to us than with an unaffiliated third party, we would not engage in
such transaction.
Upon or prior to completion of this offering,
we will enter into a registration rights agreement with respect to the founder shares, placement shares, placement warrants and units
which may be issued upon any conversion of up to $2,000,000 of loans from our sponsor or one of its affiliates described above, which
is described under the heading “Principal Stockholders — Registration Rights.”
Related Party Policy
We have not yet adopted a formal policy for the
review, approval or ratification of related party transactions. Accordingly, the transactions discussed above were not reviewed, approved
or ratified in accordance with any such policy.
Prior to the consummation of this offering, we
will adopt a code of ethics requiring us to avoid, wherever possible, all conflicts of interests, except under guidelines or resolutions
approved by our board of directors (or the appropriate committee of our board) or as disclosed in our public filings with the SEC. Under
our code of ethics, conflict of interest situations will include any financial transaction, arrangement or relationship (including any
indebtedness or guarantee of indebtedness) involving the company. A form of the code of ethics that we plan to adopt prior to the consummation
of this offering will be filed as an exhibit to the registration statement of which this prospectus is a part.
In addition, our audit committee, pursuant to
a written charter that we will adopt prior to the consummation of this offering, will be responsible for reviewing and approving related
party transactions to the extent that we enter into such transactions. An affirmative vote of a majority of the members of the audit committee
present at a meeting at which a quorum is present will be required in order to approve a related party transaction. Without a meeting,
the unanimous written consent of all of the members of the audit committee will be required to approve a related party transaction. A
form of the audit committee charter that we plan to adopt prior to the consummation of this offering will be filed as an exhibit to the
registration statement of which this prospectus is a part. We also require each of our directors and officers to complete a directors’
and officers’ questionnaire that elicits information about related party transactions.
These procedures are intended to determine whether
any such related party transaction impairs the independence of a director or presents a conflict of interest on the part of a director,
employee or officer.
Our audit committee will review on a quarterly
basis all payments that were made to our sponsor, officers or directors, or our or their affiliates.
DESCRIPTION OF SECURITIES
Pursuant to our amended and restated certificate
of incorporation, our authorized capital stock will consist of 42,000,000 shares of Class A common stock, par value $0.0001 per share,
10,000,000 shares of Class B common stock, par value $0.0001 per share, and 1,000,000 shares of undesignated preferred stock, $0.0001
par value. The following description summarizes the material terms of our capital stock. Because it is only a summary, it may not contain
all the information that is important to you.
Units
Public Units
Each unit consists of one share of Class A
common stock and one-half of one warrant. Each whole warrant entitles the holder to purchase one whole share of Class A common stock
at a price of $11.50 per share, subject to adjustment as described in this prospectus. Pursuant to the warrant agreement, a warrant holder
may exercise his, her or its warrants only for a whole number of shares of Class A common stock. This means that only a whole warrant
may be exercised at any given time by a warrant holder. No fractional warrants will be issued upon separation of the units and only whole
warrants will trade. Accordingly, unless you purchase at least four units, you will not be able to receive or trade a whole warrant.
We
anticipate that the Class A common stock and warrants comprising the units will begin separate trading on the 52nd day
following the date of this prospectus unless Goldman Sachs informs us of its decision to allow earlier separate trading, subject to our
having filed the Current Report on Form 8-K described below and having issued a press release announcing when such separate trading
will begin. Once the shares of Class A common stock and warrants commence separate trading, holders will have the option to continue
to hold units or separate their units into the component securities. Holders will need to have their brokers contact our transfer agent
in order to separate the units into shares of Class A common stock and warrants.
In no event will the Class A common stock
and warrants be traded separately until we have filed with the SEC a Current Report on Form 8-K which includes an audited balance
sheet reflecting our receipt of the gross proceeds of this offering. We will file a Current Report on Form 8-K which includes this
audited balance sheet upon the completion of this offering, which is anticipated to take place three business days after the date of this
prospectus. The audited balance sheet will include proceeds we received from the exercise of the overallotment option if such option is
exercised prior to the filing of the Current Report on Form 8-K. If the underwriter’s overallotment option is exercised following
the initial filing of such Current Report on Form 8-K, a second or amended Current Report on Form 8-K will be filed to provide
updated financial information to reflect the exercise of the underwriter’s overallotment option.
Placement Units
The placement units (including the placement warrants
or placement shares included therein) will not be transferable, assignable or salable until 30 days after the completion of our initial
business combination (except, among other limited exceptions as described under “Principal Stockholders — Restrictions
on Transfers of Founder Shares and Placement Units,” to our officers and directors and other persons or entities affiliated with
our sponsor) and will have certain registration rights. Otherwise, the placement units are identical to the units sold in this offering
except that the placement warrants included therein, so long as they are held by our sponsor or its permitted transferees, (i) will
not be redeemable by us, (ii) may not (including the Class A common stock issuable upon exercise of these warrants), subject
to certain limited exceptions, be transferred, assigned or sold by our sponsor until 30 days after the completion of our initial
business combination, (iii) may be exercised by the holders on a cashless basis, and (iv) will be entitled to registration rights.
In order to fund working capital deficiencies
or finance transaction costs in connection with an intended initial business combination, our sponsor or an affiliate of our sponsor or
certain of our officers and directors may, but are not obligated to, loan us funds as may be required. Up to $2,000,000 of such loans
may be convertible into units at a price of $10.00 per unit at the option of the lender at the time of the business combination. The units
would be identical to the placement units sold in the private placement.
Common Stock
As of the date of this
prospectus, there were 8,763,333 founder shares outstanding. This includes an aggregate of 1,133,333 founder shares which will be forfeited
to the extent that the underwriter’s overallotment option is not exercised in full. Our sponsor has committed to purchase an aggregate
of 890,000 placement shares (or 990,000 if the underwriter’s overallotment option is exercised in full) contained in the placement
units in a private placement that will occur simultaneously with the completion of this offering. Our sponsor will hold (including 890,000
placement shares (or 990,000 if the underwriter’s overallotment option is exercised in full)) an aggregate of approximately 27.9%
of the issued and outstanding common stock (or 27.9% if the underwriter’s overallotment option is exercised in full) following
the offering and the expiration of the underwriter’s overallotment option. Upon completion of this offering, 30,520,000 shares
of our common stock will be outstanding (assuming no exercise of the underwriter’s overallotment option).
Common stockholders of record are entitled to
one vote for each share held on all matters to be voted on by stockholders. Holders of our Class B common stock will have the right
to elect all of our directors prior to the consummation of our initial business combination. On any other matter submitted to a vote of
our stockholders, holders of our Class B common stock and holders of our Class A common stock will vote together as a single
class, except as required by applicable law or stock exchange rule. These provisions of our amended and restated certificate of incorporation
may only be amended if approved by a majority of at least 90% of our common stock voting at a stockholder meeting. Unless specified in
our amended and restated certificate of incorporation or bylaws, or as required by applicable law or stock exchange rules, the affirmative
vote of a majority of our shares of common stock that are voted is required to approve any such matter voted on by our stockholders (other
than the election of directors). Directors will be divided into two classes, each of which will generally serve for a term of two years
with only one class elected in each year. There is no cumulative voting with respect to the election of directors. Our stockholders
are entitled to receive ratable dividends when, as and if declared by the board of directors out of funds legally available therefor.
Because our amended and restated certificate of
incorporation authorizes the issuance of up to 42,000,000 shares of Class A common stock, if we were to enter into an initial business
combination, we may (depending on the terms of such a business combination) be required to increase the number of shares of Class A
common stock which we are authorized to issue at the same time as our stockholders vote on the initial business combination to the extent
we seek stockholder approval in connection with our initial business combination.
In accordance with Nasdaq corporate governance
requirements, we are not required to hold an annual meeting until no later than one year after our first fiscal year end following our
listing on Nasdaq. Under Section 211(b) of the DGCL, we are, however, required to hold an annual meeting of stockholders for
the purposes of electing directors in accordance with our bylaws, unless such election is made by written consent in lieu of such a meeting.
We may not hold an annual meeting of stockholders until after we consummate our initial business combination, and thus may not be in compliance
with Section 211(b) of the DGCL. Therefore, if our stockholders want us to hold an annual meeting prior to our consummation
of our initial business combination, they may attempt to force us to hold one by submitting an application to the Delaware Court of Chancery
in accordance with Section 211(c) of the DGCL.
We will provide all public
stockholders with the opportunity to redeem all or a portion of their public shares upon the consummation of our initial business combination,
either in connection with a stockholder meeting called to approve the business combination or by means of a tender offer, at a per-share
price, payable in cash, equal to the aggregate amount then on deposit in the trust account as of two business days prior to the consummation
of our initial business combination, including any amounts representing deferred underwriting commissions and interest earned on the
trust account, less any interest released to us for the payment of taxes, divided by the number of then outstanding public shares, subject
to the limitations described herein and any limitations (including but not limited to cash requirements) agreed to in connection with
the negotiation of terms of a proposed business combination. The amount in the trust account is initially anticipated to be $10.10 per
public share.
The initial holders,
our officers and directors have agreed to waive their redemption rights with respect to their founder shares and placement shares, as
applicable, (i) in connection with the consummation of a business combination, (ii) in connection with a stockholder vote to
amend our amended and restated certificate of incorporation to modify the substance or timing of our obligation to redeem 100% of our
public shares if we do not complete our initial business combination within 18 months from the completion of this offering, or 21 months
from the closing of this offering if we have executed a letter of intent, agreement in principle or definitive agreement for our initial
business combination within 18 months from the closing of, (excluding any exercise of the underwriter’s overallotment option) and
(iii) if we fail to consummate a business combination within 18 months from the completion of this offering, or 21 months from the
closing of this offering if we have executed a letter of intent, agreement in principle or definitive agreement for our initial business
combination within 18 months from the closing of, or if we liquidate prior to the expiration of the 18 month period, which is extendable
at our sponsor’s option to up to 21 months as described herein. The initial holders and our officers and directors have also agreed
to waive their redemption rights with respect to public shares in connection with the consummation of a business combination and in connection
with a stockholder vote to amend our amended and restated certificate of incorporation to modify the substance or timing of our obligation
to redeem 100% of our public shares if we do not complete our initial business combination within the 18 month period, which is extendable
at our sponsor’s option to up to 21 months as described herein. However, the initial holders and our officers and directors will
be entitled to redemption rights with respect to any public shares held by them if we fail to consummate a business combination within
the 18 month period, which is extendable at our sponsor’s option to up to 21 months as described herein. To the extent our initial
stockholders, our officers and our directors transfer any of these securities to certain permitted transferees, such permitted transferees
will agree, as a condition to such transfer, to waive these same redemption rights. If we submit our initial business combination to
our public stockholders for a vote, our sponsor, the other initial holders, our officers and our directors, have agreed to vote their
respective founder shares, placement shares and any public shares held by them in favor of our initial business combination.
The decision as to whether we will seek stockholder
approval of a proposed business combination or conduct a tender offer will be made by us, solely in our discretion, and will be based
on a variety of factors such as the timing of the transaction and whether the terms of the transaction would require us to seek stockholder
approval under the law or stock exchange listing requirement. We currently intend to conduct redemptions pursuant to a stockholder vote
unless stockholder approval is not required by applicable law or stock exchange listing requirement and we choose to conduct redemptions
pursuant to the tender offer rules of the SEC for business or other reasons.
If a stockholder vote
is not required and we do not decide to hold a stockholder vote for business or other legal reasons, we will, pursuant to our amended
and restated certificate of incorporation, conduct the redemptions pursuant to the tender offer rules of the SEC, and file tender
offer documents with the SEC prior to consummating our initial business combination. Our amended and restated certificate of incorporation
requires these tender offer documents to contain substantially the same financial and other information about the initial business combination
and the redemption rights as is required under the SEC’s proxy rules. If, however, stockholder approval of the transaction is required
by law or Nasdaq, or we decide to obtain stockholder approval for business or other reasons, we will, like many blank check companies,
offer to redeem shares in conjunction with a proxy solicitation pursuant to the proxy rules and not pursuant to the tender offer
rules. If we seek stockholder approval, we will complete our initial business combination only if a majority of the outstanding shares
of common stock voted are voted in favor of the business combination. A quorum for such meeting will consist of the holders present in
person or by proxy of shares of outstanding capital stock of the company representing a majority of the voting power of all outstanding
shares of capital stock of the company entitled to vote at such meeting. Our initial stockholders, officers and directors will count
towards this quorum and have agreed to vote any founder shares, placement shares and any public shares held by them in favor of our initial
business combination. We expect that at the time of any stockholder vote relating to our initial business combination, our initial stockholders
and their permitted transferees will own at least 27.9% of our outstanding shares of common stock entitled to vote thereon. As a result,
in addition to our initial stockholders’ founder shares and placement shares, we would need 6,740,001, or 30.6%, of the 22,000,000
public shares sold in this offering to be voted in favor of a transaction (assuming all issued and outstanding shares are voted and the
option to purchase additional units is not exercised) in order to have such initial business combination approved. These quorum and voting
thresholds and agreements may make it more likely that we will consummate our initial business combination.
Assuming our initial business combination is approved,
to the extent provided in this prospectus, each public stockholder may elect to redeem his, her or its public shares irrespective of whether
he, she or it votes for or against the proposed transaction, for cash equal to a pro rata share of the aggregate amount then on deposit
in the trust account, including interest but less interest released to us to pay taxes or dissolution costs.
Pursuant to our amended
and restated certificate of incorporation, if we are unable to consummate a business combination within 18 months from the completion
of this offering, or 21 months from the closing of this offering if we have executed a letter of intent, agreement in principle or definitive
agreement for our initial business combination within 18 months from the closing of, we will (i) cease all operations except for
the purpose of winding up, (ii) as promptly as reasonably possible but no more than ten business days thereafter, redeem the public
shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the trust account, including any amounts
representing interest earned on the trust account, less any interest released to us to pay our franchise and income taxes and up to $100,000
to pay dissolution expenses, divided by the number of then outstanding public shares, which redemption will completely extinguish public
stockholders’ rights as stockholders (including the right to receive further liquidation distributions, if any), subject to applicable
law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of our remaining stockholders
and our board of directors, dissolve and liquidate, subject in each case to our obligations under Delaware law to provide for claims
of creditors and the requirements of other applicable law. The initial holders, our officers and directors and holders of placement units
have agreed to waive their redemption rights with respect to any founder shares and placement shares they hold (i) in connection
with the consummation of a business combination, (ii) in connection with a stockholder vote to amend our amended and restated certificate
of incorporation to modify the substance or timing of our obligation to redeem 100% of our public shares if we do not complete our initial
business combination within 18 months from the completion of this offering, or 21 months from the closing of this offering if we have
executed a letter of intent, agreement in principle or definitive agreement for our initial business combination within 18 months from
the closing of, and (iii) if we fail to consummate a business combination within the 18 month period or if we liquidate prior to
the expiration of the 18 month period, which is extendable at our sponsor’s option to up to 21 months as described herein. The
initial holders, our officers and directors have also agreed to waive their redemption rights with respect to public shares in connection
with the consummation of a business combination and in connection with a stockholder vote to amend our amended and restated certificate
of incorporation to modify the substance or timing of our obligation to redeem 100% of our public shares if we do not complete our initial
business combination within the 18 month period, which is extendable at our sponsor’s option to up to 21 months as described herein.
However, the initial holders, our officers and directors will be entitled to redemption rights with respect to any public shares held
by them if we fail to consummate a business combination or liquidate within the 18 month period, which is extendable at our sponsor’s
option to up to 21 months as described herein.
If we liquidate, dissolve or wind up after our
initial business combination, our stockholders are entitled to share ratably in all assets remaining available for distribution to them
after payment of liabilities and after provision is made for each class of stock, if any, having preference over the common stock. Our
stockholders have no preemptive or other subscription rights. There are no sinking fund provisions applicable to our common stock, except
that upon the consummation of our initial business combination, subject to the limitations described herein, we will provide our stockholders
with the opportunity to redeem their shares of our common stock for cash equal to their pro rata share of the aggregate amount then on
deposit in the trust account, including any amounts representing interest earned on the trust account, less any interest released to us
to pay our franchise and income taxes and up to $100,000 to pay dissolution expenses.
Founder Shares
The founder shares and
placement shares are each identical to the shares of Class A common stock included in the units being sold in this offering, and
holders of founder shares or placement shares have the same stockholder rights as public stockholders, except that (i) only holders
of the founder shares have the right to vote on the election of directors prior to our initial business combination; (ii) the founder
shares and placement shares are subject to certain transfer restrictions, as described in “Principal Stockholders —
Restrictions on Transfers of Founder Shares and Placement Units”, and (iii) each holder of founder shares has agreed, and
each purchaser of placement units will agree, to waive his, her or its redemption rights with respect to his, her or its founder shares
and placement shares, (A) in connection with the consummation of a business combination, (B) in connection with a stockholder
vote to approve an amendment to our amended and restated certificate of incorporation (i) to modify the substance or timing of our
obligation to provide for the redemption of our public shares in connection with an initial business combination or to redeem 100% of
our public shares if we have not consummated our initial business combination within 18 months from the closing of this offering, or
21 months from the closing of this offering if we have executed a letter of intent, agreement in principle or definitive agreement
for our initial business combination within 18 months from the closing of this offering but have not completed our initial business
combination within such 18-month period, or (ii) with respect to any other provision relating to stockholders’ rights
or pre-initial business combination activity, (C) if we fail to consummate our initial business combination within the 18 month
period, which is extendable at our sponsor’s option to up to 21 months as described herein, and (D) upon our liquidation prior
to the expiration of the 18 month period, which is extendable at our sponsor’s option to up to 21 months as described herein. To
the extent holders of founder shares or purchasers of placement units transfer any of these securities, such transferees will agree,
as a condition to such transfer, to waive these same redemption rights. If we submit our initial business combination to our public stockholders
for a vote, our sponsor and the other initial holders have agreed, and our officers and directors will each agree, to vote their respective
founder shares, placement shares and any public shares held by them in favor of our initial business combination.
The shares of Class B common stock will automatically
convert into shares of Class A common stock at the time of our initial business combination on a one-for-one basis (subject to adjustment
for stock splits, stock dividends, reorganizations, recapitalizations and the like), and subject to further adjustment as provided herein.
In the case that additional shares of Class A common stock or
equity-linked securities are issued or deemed issued in excess of the amounts sold in this offering and related to the closing of the
initial business combination, the ratio at which shares of Class B common stock shall convert into shares of Class A common
stock will be adjusted (unless the holders of a majority of the outstanding shares of Class B common stock agree to waive such adjustment
with respect to any such issuance or deemed issuance) so that the number of shares of Class A common stock issuable upon conversion
of all shares of Class B common stock will equal, in the aggregate, on an as-converted basis 25% of the sum of the total number of
all shares of common stock issued and outstanding upon completion of this offering, including placement shares, plus all shares of Class A
common stock and equity-linked securities issued or deemed issued in connection with our initial business combination, excluding any shares
or equity-linked securities issued, or to be issued, to any seller in our initial business combination and any private placement-equivalent
securities issued to our sponsor or its affiliates upon conversion of loans made to us. We cannot determine at this time whether a majority
of the holders of our Class B common stock at the time of any future issuance would agree to waive such adjustment to the conversion
ratio. They may waive such adjustment due to (but not limited to) the following: (i) closing conditions which are part of the agreement
for our initial business combination; (ii) negotiation with Class A stockholders on structuring an initial business combination;
or (iii) negotiation with parties providing financing which would trigger the anti-dilution provisions of the Class B common
stock. If such adjustment is not waived, the future issuance would not reduce the percentage ownership of holders of our Class B
common stock, but would reduce the percentage ownership of holders of our Class A common stock. If such adjustment is waived, the
future issuance would reduce the percentage ownership of holders of both classes of our common stock. The term “equity-linked securities”
refers to any debt or equity securities that are convertible, exercisable or exchangeable for shares of Class A common stock issued
in a financing transaction in connection with our initial business combination, including but not limited to a private placement of equity
or debt. Securities could be “deemed issued” for purposes of the conversion rate adjustment if such shares are issuable upon
the conversion or exercise of convertible securities, warrants or similar securities.
With certain limited exceptions, the founder shares
are not transferable, assignable or salable (except to our officers and directors and other persons or entities affiliated with our initial
holders, each of whom will be subject to the same transfer restrictions) until the date (i) with respect to 25% of such shares, upon
consummation of our initial business combination, (ii) with respect to 25% of such shares, when the closing price of our Class A
common stock exceeds $12.00 for any 20 trading days within a 30-trading day period following the consummation of our initial business
combination, (iii) with respect to 25% of such shares, when the closing price of our Class A common stock exceeds $13.50 for
any 20 trading days within a 30-trading day period following the consummation of our initial business combination, and (iv) with
respect to 25% of such shares, when the closing price of our Class A common stock exceeds $15.00 for any 20 trading days within a
30-trading day period following the consummation of our initial business combination or earlier, in any case, if, following a business
combination, (iv) we complete a liquidation, merger, capital stock exchange, reorganization or other similar transaction that results
in all of our public stockholders having the right to exchange their shares of common stock for cash, securities or other property.
Preferred Stock
Our amended and restated certificate of incorporation
provides that shares of preferred stock may be issued from time to time in one or more series. Our board of directors will be authorized
to fix the voting rights, if any, designations, powers, preferences, the relative, participating, optional or other special rights and
any qualifications, limitations and restrictions, applicable to the shares of each series. Our board of directors will be able, without
stockholder approval, to issue preferred stock with voting and other rights that could adversely affect the voting power and other rights
of the holders of the common stock and could have anti-takeover effects. The ability of our board of directors to issue preferred stock
without stockholder approval could have the effect of delaying, deferring or preventing a change of control of us or the removal of existing
management. We have no preferred stock outstanding at the date hereof. Although we do not currently intend to issue any shares of preferred
stock, we cannot assure you that we will not do so in the future. No shares of preferred stock are being issued or registered in this
offering. However, if issued prior to our initial business combination, none of the shares of our preferred stock will have any right
to amounts held in the trust account.
Warrants
Public Warrants
Each whole warrant entitles the registered holder
to purchase one whole share of our Class A common stock at a price of $11.50 per share, subject to adjustment as discussed below,
at any time commencing 30 days after the completion of our initial business combination. Pursuant to the warrant agreement, a warrantholder
may exercise its warrants only for a whole number of shares of Class A common stock. This means that only a whole warrant may be
exercised at any given time by a warrantholder. No fractional warrants will be issued upon separation of the units and only whole warrants
will trade. Accordingly, unless you purchase at least four units, you will not be able to receive or trade a whole warrant. The warrants
will expire five years after the completion of our initial business combination, at 5:00 p.m., New York City time, or earlier upon
redemption or liquidation.
We will not be obligated to deliver any shares
of Class A common stock pursuant to the exercise for cash of a warrant and will have no obligation to settle such warrant exercise
unless a registration statement under the Securities Act with respect to the shares of Class A common stock underlying the warrants
is then effective and a prospectus relating thereto is current, subject to our satisfying our obligations described below with respect
to registration. No warrant will be exercisable and we will not be obligated to issue shares of Class A common stock upon exercise
of a warrant unless Class A common stock issuable upon such warrant exercise has been registered, qualified or deemed to be exempt
from the registration or qualifications requirements of the securities laws of the state of residence of the registered holder of the
warrants. Notwithstanding the foregoing, if a registration statement covering the shares of Class A common stock issuable upon exercise
of the public warrants has not been declared effective by the end of 60 business days following the closing of our initial business combination,
warrant holders may, until such time as there is an effective registration statement and during any period when we shall have failed to
maintain an effective registration statement, exercise warrants on a cashless basis pursuant to the exemption provided by Section 3(a)(9) of
the Securities Act.
Although
this registration statement registers the offer of the Class A common stock underlying the warrants, it does not register the
issuance of the shares underlying the warrants from time to time following the initial business combination. We have agreed that as
soon as practicable, but in no event later than 15 business days after the closing of our initial business combination, we will use
our commercially reasonable efforts to file with the SEC a post-effective amendment to the registration statement of which this
prospectus forms a part or a new registration statement covering the issuance of the shares of Class A common stock issuable
upon exercise of the warrants and to maintain a current prospectus relating to those shares of Class A common stock until the
warrants expire or are redeemed, as specified in the warrant agreement. If a registration statement covering the shares of
Class A common stock issuable upon exercise of the warrants is not effective by the 60th
business day after the closing of our initial business combination, warrant holders may, until such time as there is an effective
registration statement and during any period when we will have failed to maintain an effective registration statement, exercise
warrants on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act or another exemption.
In addition to the above, if our Class A common stock is at the time of any exercise of a warrant not listed on a national
securities exchange such that it satisfies the definition of a “covered security” under Section 18(b)(1) of
the Securities Act, we may, at our option, require holders of public warrants who exercise their warrants to do so on a
“cashless basis” in accordance with Section 3(a)(9) of the Securities Act and, in the event we so elect, we
will not be required to file or maintain in effect a registration statement, and in the event we do not so elect, we will use our
commercially reasonable efforts to register or qualify the shares under applicable blue sky laws to the extent an exemption is not
available. In such event, each holder would pay the exercise price by surrendering the warrants for that number of shares of
Class A common stock equal to the quotient obtained by dividing (x) the product of the number of
shares of Class A common stock underlying the warrants, multiplied by the excess of the “fair market value”
(defined below) less the exercise price of the warrants by (y) the fair market value. The “fair market
value” as used in this paragraph shall mean the volume weighted average price of the Class A common stock for the 10
trading days ending on the trading day prior to the date on which the notice of exercise is received by the warrant agent.
Redemption of warrants.
Once the warrants become exercisable, we may redeem
the outstanding warrants:
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in whole and not in part;
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at a price of $0.01 per warrant;
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upon not less than 30 days’ prior written notice
of redemption (the “30-day redemption period”) to each warrant holder; and
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if, and only if, the reported last sale price of the Class A
common stock (or the closing bid price of our common stock in the event shares of our common stock are not traded on any specific day)
equals or exceeds $18.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for
any 20 trading days within a 30 trading day period ending three business days before we send the notice of redemption to the warrant
holders.
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If and when the warrants become redeemable by
us, we may exercise our redemption right even if we are unable to register or qualify the underlying securities for sale under all applicable
state securities laws.
We have established the last of the redemption
criterion discussed above to prevent a redemption call unless there is at the time of the call a significant premium to the warrant exercise
price. If the foregoing conditions are satisfied and we issue a notice of redemption of the warrants, each warrant holder will be entitled
to exercise its warrant prior to the scheduled redemption date. However, the price of the Class A common stock may fall below the
$18.00 redemption trigger price (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) as well
as the $11.50 (for whole shares) warrant exercise price after the redemption notice is issued.
If, at the time of redemption, the warrants are
exercisable for a security other than the shares of Class A common stock pursuant to the warrant agreement (for instance, if we
are not the surviving company in our initial business combination), the warrants may be exercised for such security. At such time as
the warrants become exercisable for a security other than the Class A common stock, the company (or surviving company) will use
its commercially reasonable efforts to register under the Securities Act the security issuable upon exercise of the warrants.
Redemption procedures
A holder of a warrant may notify us in writing
in the event it elects to be subject to a requirement that such holder will not have the right to exercise such warrant, to the extent
that after giving effect to such exercise, such person (together with such person’s affiliates), to the warrant agent’s actual
knowledge, would beneficially own in excess of 9.8% of the shares of Class A
common stock outstanding immediately after giving effect to such exercise.
Anti-dilution adjustments
If the number of
outstanding shares of Class A common stock is increased by a stock dividend payable in shares of Class A common stock, or
by a split-up of shares of Class A common stock or other similar event, then, on the effective date of such stock dividend,
split-up or similar event, the number of shares of Class A common stock issuable on exercise of each warrant will be increased
in proportion to such increase in the outstanding shares of Class A common stock. A rights offering to all or substantially all
holders of Class A common stock entitling holders to purchase shares of Class A common stock at a price less than the fair
market value will be deemed a stock dividend of a number of shares of Class A common stock equal to the product of (i) the
number of shares of Class A common stock actually sold in such rights offering (or issuable under any other equity securities
sold in such rights offering that are convertible into or exercisable for Class A common stock) multiplied by (ii) one
(1) minus the quotient of (x) the price per share of Class A common stock paid in such rights offering divided by
(y) the fair market value. For these purposes (i) if the rights offering is for securities convertible into or exercisable
for Class A common stock, in determining the price payable for Class A common stock, there will be taken into account any
consideration received for such rights, as well as any additional amount payable upon exercise or conversion and
(ii) “fair market value” means the volume weighted average price of Class A common stock as reported during
the ten (10) trading day period ending on the trading day prior to the first date on which the shares of Class A common
stock trade on the applicable exchange or in the applicable market, regular way, without the right to receive such rights.
In addition, if we, at
any time while the warrants are outstanding and unexpired, pay to all or substantially all holders of Clas A common stock a dividend
or make a distribution in cash, securities or other assets to the holders of Class A common stock on account of such shares of
Class A common stock (or other shares of our capital stock into which the warrants are convertible), other than (a) as
described above, (b) certain ordinary cash dividends, (c) to satisfy the redemption rights of the holders of Class A
common stock in connection with a proposed initial business combination, (d) to satisfy the redemption rights of the holders of
Class A common stock in connection with a stockholder vote to amend our amended and restated certificate of incorporation
(i) to modify the substance or timing of our obligation to redeem 100% of our Class A common stock if we do not complete
our initial business combination within 18 months from the closing of this offering, or 21 months from the closing of this
offering if we have executed a letter of intent, agreement in principle or definitive agreement for our initial business combination
within 18 months from the closing of this offering but have not completed our initial business combination within such
18-month period, or (ii) with respect to any other provision relating to stockholders’ rights or pre-initial
business combination activity, or (e) in connection with the redemption of our public shares upon our failure to complete our
initial business combination, then the warrant exercise price will be decreased, effective immediately after the effective date of
such event, by the amount of cash and/or the fair market value of any securities or other assets paid on each share of Class A
common stock in respect of such event.
If the number of outstanding shares of our Class A
common stock is decreased by a consolidation, combination, reverse stock split or reclassification of shares of Class A common stock
or other similar event, then, on the effective date of such consolidation, combination, reverse stock split, reclassification or similar
event, the number of shares of Class A common stock issuable on exercise of each warrant will be decreased in proportion to such
decrease in outstanding shares of Class A common stock.
Whenever the number of shares of Class A
common stock purchasable upon the exercise of the warrants is adjusted, as described above, the warrant exercise price will be adjusted
by multiplying the warrant exercise price immediately prior to such adjustment by a fraction (x) the numerator of which will be the
number of shares of Class A common stock purchasable upon the exercise of the warrants immediately prior to such adjustment, and
(y) the denominator of which will be the number of shares of Class A common stock so purchasable immediately thereafter.
In case of any reclassification or reorganization
of the outstanding shares of Class A common stock (other than those described above or that solely affects the par value of such
shares of Class A common stock), or in the case of any merger or consolidation of us with or into another corporation (other than
a consolidation or merger in which we are the continuing corporation and that does not result in any reclassification or reorganization
of our outstanding shares of Class A common stock), or in the case of any sale or conveyance to another corporation or entity of
the assets or other property of us as an entirety or substantially as an entirety in connection with which we are dissolved, the holders
of the warrants will thereafter have the right to purchase and receive, upon the basis and upon the terms and conditions specified in
the warrants and in lieu of the shares of our Class A common stock immediately theretofore purchasable and receivable upon the exercise
of the rights represented thereby, the kind and amount of shares of stock or other securities or property (including cash) receivable
upon such reclassification, reorganization, merger or consolidation, or upon a dissolution following any such sale or transfer, that the
holder of the warrants would have received if such holder had exercised their warrants immediately prior to such event. The
purpose of such exercise price reduction is to provide additional value to holders of the warrants when an extraordinary transaction occurs
during the exercise period of the warrants pursuant to which the holders of the warrants otherwise do not receive the full potential value
of the warrants.
The warrants will be issued in registered form
under a warrant agreement between Continental Stock Transfer & Trust Company, as warrant agent, and us. You should review a copy
of the warrant agreement, which was filed as an exhibit to the registration statement of which this prospectus is a part, for a complete
description of the terms and conditions applicable to the warrants. The warrant agreement provides that the terms of the warrants may
be amended without the consent of any holder to cure any ambiguity or correct any defective provision, but requires the approval by the
holders of at least 50% of the then outstanding public warrants to make any change that adversely affects the interests of the registered
holders of public warrants.
In addition, if
(x) we issue additional shares of Class A common stock or equity-linked securities for capital raising purposes in
connection with the closing of our initial business combination at an issue price or effective issue price of less than $9.20 per
share (with such issue price or effective issue price to be determined in good faith by us and in the case of any such issuance to
our sponsor or its affiliates, without taking into account any founder shares held by our initial stockholders or such affiliates,
as applicable, prior to such issuance) (the “Newly Issued Price”), (y) the aggregate gross proceeds from such
issuances represent more than 60% of the total equity proceeds, and interest thereon, available for the funding of our initial
business combination on the date of the completion of our initial business combination (net of redemptions), and (z) the
volume-weighted average trading price of our shares of Class A common stock during the 20 trading day period starting on the
trading day prior to the day on which we complete our initial business combination (such price, the “Market Value”) is
below $9.20 per share, the exercise price of the warrants will be adjusted (to the nearest cent) to be equal to 115% of the higher
of the Market Value and the Newly Issued Price, and $18.00 per share redemption trigger price described adjacent to
“Redemption of warrants” will be adjusted (to the
nearest cent) to be equal to 180% of the higher of the Market Value and the Newly
Issued Price.
The warrants may be exercised upon surrender of
the warrant certificate on or prior to the expiration date at the offices of the warrant agent, with the exercise form on the reverse
side of the warrant certificate completed and executed as indicated, accompanied by full payment of the exercise price (or on a cashless
basis, if applicable), by certified or official bank check payable to us, for the number of warrants being exercised. The warrant holders
do not have the rights or privileges of holders of Class A common stock and any voting rights until they exercise their warrants
and receive shares of Class A common stock. After the issuance of shares of Class A common stock upon exercise of the warrants,
each holder will be entitled to one (1) vote for each share held of record on all matters to be voted on by stockholders.
Warrants may be exercised only for a whole number
of shares of Class A common stock. No fractional shares will be issued upon exercise of the warrants. If, upon exercise of the warrants,
a holder would be entitled to receive a fractional interest in a share, we will, upon exercise, round down to the nearest whole number
of shares of Class A common stock to be issued to the warrant holder. As a result, warrant holders not purchasing an even number
of warrants must sell any odd number of warrants in order to obtain full value from the fractional interest that will not be issued.
Placement Warrants
Our sponsor has committed
to purchase an aggregate of 445,000 placement warrants (or 495,000 if the underwriter’s overallotment option is exercised in full)
which are included in the 890,000 placement units (or 990,000 if the underwriter’s overallotment option is exercised in full) at
the price of $10.00 per unit, for an aggregate purchase price of $8,900,000 (or $9,900,000 if the underwriter’s overallotment option
is exercised in full), in a private placement that will occur simultaneously with the completion of this offering. The placement warrants
(including the Class A common stock issuable upon exercise of the placement warrants) will not be transferable, assignable or salable
until 30 days after the completion of our initial business combination (except, among other limited exceptions as described under
the section of this prospectus entitled “Principal Stockholders — Restrictions on Transfers of Founder Shares and Placement
Units,” to our officers and directors and other persons or entities affiliated with our sponsor) and they will not be redeemable
by us so long as they are held by our sponsor or its permitted transferees. Our sponsor or its permitted transferees have the option
to exercise the placement warrants on a cashless basis. Except as described below, the placement warrants have terms and provisions that
are identical to those of the warrants being sold as part of the units in this offering, including as to exercise price, exercisability
and exercise period.
In addition, holders of our placement warrants
are entitled to certain registration rights.
Our Transfer Agent and Warrant Agent
The transfer agent for our common stock and warrant
agent for our warrants is Continental Stock Transfer & Trust Company. We have agreed to indemnify Continental Stock Transfer &
Trust Company in its roles as transfer agent and warrant agent, and each of its officers, directors, employees, affiliates and agents
against all claims and losses that may arise out of acts performed or omitted for its activities in that capacity, except for any liability
due to any gross negligence, bad faith or intentional misconduct of the indemnified person or entity.
Amendments to our Amended and Restated Certificate of Incorporation
Our amended and restated certificate of incorporation
contains requirements and restrictions relating to this offering that will apply to us until the consummation of our initial business
combination. These provisions, which cannot be amended without the approval of holders owning 65% of the issued and outstanding shares
of our common stock, are as follows:
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if we are unable to consummate our initial
business combination within 18 months from the completion of this offering, or 21 months
from the closing of this offering if we have executed a letter of intent, agreement in principle
or definitive agreement for our initial business combination within 18 months from the closing
of, we will (i) cease all operations except for the purpose of winding up, (ii) as
promptly as reasonably possible but not more than ten business days thereafter, redeem the
public shares, at a per-share price, payable in cash, equal to the aggregate amount then
on deposit in the trust account, including any amounts representing interest earned on the
trust account, less any interest released to us for the payment of taxes or dissolution expenses,
divided by the number of then outstanding public shares, which redemption will completely
extinguish public stockholders’ rights as stockholders (including the right to receive
further liquidation distributions, if any), subject to applicable law, and (iii) as
promptly as reasonably possible following such redemption, subject to the approval of our
remaining stockholders and our board of directors, dissolve and liquidate, subject in each
case to our obligations under Delaware law to provide for claims of creditors and the requirements
of other applicable law;
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after the completion of this offering and prior to our initial
business combination, we may not issue additional shares of capital stock that would entitle the holders thereof to (i) receive
funds from the trust account or (ii) vote on any initial business combination;
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although we do not currently intend to enter into a business
combination with a target business that is affiliated with holders of founder shares, our directors or officers, we are not prohibited
from doing so. If we propose to do so, we, or a committee of independent directors, must obtain an opinion from an independent investment
banking firm that is a member of FINRA or an independent accounting firm that such a business combination is fair to our stockholders
from a financial point of view;
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if a stockholder vote on our initial business combination is
not required by law or Nasdaq and we do not decide to hold a stockholder vote for business or other reasons, we must offer to redeem
our public shares pursuant to Rule 13e-4 and Regulation 14E of the Exchange Act, and will file tender offer documents with the SEC
prior to consummating our initial business combination which contain substantially the same financial and other information about our
initial business combination and the redemption rights as is required under Regulation 14A of the Exchange Act;
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if
our stockholders approve an amendment to our amended and restated certificate of incorporation
that would affect the substance or timing of our obligation to redeem 100% of our public
shares if we do not complete our business combination within 18 months, or 21 months
from the closing of this offering if we have executed a letter of intent, agreement in principle
or definitive agreement for our initial business combination within 18 months from the
closing of this offering but have not completed our initial business combination within such
18-month period, we will provide our public stockholders with the opportunity to redeem
all or a portion of their shares of common stock upon such approval at a per-share price,
payable in cash, equal to the aggregate amount then on deposit in the trust account, including
interest earned on the funds held in the trust account (net of taxes payable), divided by
the number of then outstanding public shares; and
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we may not effectuate our initial business combination with
another blank check company or a similar company with nominal operations.
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If, however, the effect
of any proposed amendment, if adopted, would be either to (i) reduce the amount in the trust account available to redeeming stockholders
to less than $10.10 per share, or (ii) delay the date on which a public stockholder could otherwise redeem shares for such per share
amount in the trust account and, if such amendment is approved by persons holding at least 65% of our outstanding shares of common stock
we will provide a right for dissenting public stockholders to redeem their public shares in the same manner as if we were seeking a stockholder
vote on a business combination, except that the amount on deposit in the trust account for purposes of calculating the per share redemption
price will be determined at the close of business two business days before the meeting date. Our initial holders, executive officers
and directors have agreed to vote any founder shares and public shares they hold in favor of any such amendments that we may propose
and, accordingly, will have no redemption rights in connection therewith.
In addition, our amended
and restated certificate of incorporation provides that under no circumstances will we redeem our public shares in an amount that would
cause our net tangible assets to be less than $5,000,001 upon consummation of our initial business combination. This notwithstanding,
if the effect of any proposed amendment, if adopted, would be either to (i) reduce the amount in the trust account available to
redeeming stockholders to less than $10.10 per public share, or (ii) delay the date on which a public stockholder could otherwise
redeem shares for such per share amount in the trust account, we will provide a right for dissenting public stockholders to redeem public
shares if such an amendment is approved.
Certain Anti-Takeover Provisions of Delaware Law
We will be subject to the provisions of Section 203
of the DGCL regulating corporate takeovers upon completion of this offering. This statute prevents certain Delaware corporations, under
certain circumstances, from engaging in a “business combination” with:
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a stockholder who owns 15% or more of our outstanding voting
stock (otherwise known as an “interested stockholder”);
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an affiliate of an interested stockholder; or
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an associate of an interested stockholder, for three years following
the date that the stockholder became an interested stockholder.
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A “business combination” includes
a merger or sale of more than 10% of our assets. However, the above provisions of Section 203 do not apply if:
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our board of directors approves the transaction that made the
stockholder an “interested stockholder,” prior to the date of the transaction;
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after the completion of the transaction that resulted in the
stockholder becoming an interested stockholder, that stockholder owned at least 85% of our voting stock outstanding at the time the transaction
commenced, other than statutorily excluded shares of common stock; or
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on or subsequent to the date of the transaction, the business
combination is approved by our board of directors and authorized at a meeting of our stockholders, and not by written consent, by an
affirmative vote of at least two-thirds of the outstanding voting stock not owned by the interested stockholder.
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Exclusive Forum Selection
Our amended and restated certificate of incorporation
will require, to the fullest extent permitted by law, that derivative actions brought in our name, actions against directors, officers
and employees for breach of fiduciary duty and other similar actions may be brought only in the Court of Chancery in the State of Delaware,
except any action (A) as to which the Court of Chancery in the State of Delaware determines that there is an indispensable party
not subject to the jurisdiction of the Court of Chancery (and the indispensable party does not consent to the personal jurisdiction of
the Court of Chancery within ten days following such determination), (B) which is vested in the exclusive jurisdiction of a court
or forum other than the Court of Chancery, or (C) for which the Court of Chancery does not have subject matter jurisdiction. If an
action is brought outside of Delaware, the stockholder bringing the suit will be deemed to have consented to service of process on such
stockholder’s counsel. Although we believe this provision benefits us by providing increased consistency in the application of Delaware
law in the types of lawsuits to which it applies, a court may determine that this provision is unenforceable, and to the extent it is
enforceable, the provision may have the effect of discouraging lawsuits against our directors and officers.
Our amended and restated certificate of incorporation
provides that the exclusive forum provision will be applicable to the fullest extent permitted by applicable law, subject to certain exceptions.
Section 27 of the Exchange Act creates exclusive federal jurisdiction over all suits brought to enforce any duty or liability created
by the Exchange Act or the rules and regulations thereunder. As a result, the exclusive forum provision will not apply to suits brought
to enforce any duty or liability created by the Exchange Act or any other claim for which the federal courts have exclusive jurisdiction.
In addition, our amended and restated certificate of incorporation provides that, unless we consent in writing to the selection of an
alternative forum, the federal district courts of the United States of America shall, to the fullest extent permitted by law, be
the exclusive forum for the resolution of any complaint asserting a cause of action arising under the Securities Act of 1933, as amended,
or the rules and regulations promulgated thereunder. We note, however, that there is uncertainty as to whether a court would enforce
this provision and that investors cannot waive compliance with the federal securities laws and the rules and regulations thereunder.
Section 22 of the Securities Act creates concurrent jurisdiction for state and federal courts over all suits brought to enforce any
duty or liability created by the Securities Act or the rules and regulations thereunder.
SECURITIES ELIGIBLE FOR FUTURE SALE
Immediately after this
offering (assuming no exercise of the underwriter’s overallotment option) we will have 30,520,000 shares of common stock outstanding,
or 35,053,333 shares of common stock outstanding if the underwriter exercises its overallotment option in full. Of these shares, the
22,000,000 shares of Class A common stock sold in this offering (assuming no exercise of the underwriter’s overallotment option),
or 25,300,000 shares of Class A common stock sold in this offering if the underwriter exercises its overallotment option in full,
will be freely tradable without restriction or further registration under the Securities Act, except for any shares purchased by one
of our affiliates within the meaning of Rule 144 under the Securities Act. The remaining 7,630,000 founder shares (assuming no exercise
of the underwriter’s overallotment option) and 890,000 placement shares are restricted securities under Rule 144, in that
they were issued in private transactions not involving a public offering.
Rule 144
Pursuant to Rule 144, a person who has beneficially
owned restricted shares of our common stock or warrants for at least six months would be entitled to sell his, her or its securities provided
that (i) such person is not deemed to have been one of our affiliates at the time of, or at any time during the three months preceding,
a sale and (ii) we are subject to the Exchange Act periodic reporting requirements for at least three months before the sale and
have filed all required reports under Section 13 or 15(d) of the Exchange Act during the 12 months (or such shorter period as
we were required to file reports) preceding the sale. However, Rule 144 is not available for the resale of securities initially issued
by shell companies (other than business combination related shell companies) or issuers that have been at any time previously a shell
company. Rule 144 does include an important exception to this prohibition if the following conditions are met:
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the issuer of the securities that was formerly a shell company
has ceased to be a shell company;
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the issuer of the securities is subject to the reporting requirements
of Section 13 or 15(d) of the Exchange Act;
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the issuer of the securities has filed all Exchange Act reports
and material required to be filed, as applicable, during the preceding 12 months (or such shorter period that the issuer was required
to file such reports and materials), other than Form 8-K reports; and
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at least one year has elapsed from the time that the issuer
filed current Form 10 type information with the SEC reflecting its status as an entity that is not a shell company.
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As a result, the initial holders and purchasers
of placement units will be able to sell their founder shares, placement shares, placement warrants, and warrants that may be issued on
conversion of loans by our sponsor or one of its affiliates (and shares issued upon their exercise), as applicable, pursuant to and in
accordance with Rule 144 without registration one year after we have completed our initial business combination. However, if they
remain one of our affiliates, they will only be permitted to sell a number of securities that does not exceed the greater of:
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1% of the total number of shares of common stock then outstanding,
which will equal 306,533 shares immediately after this offering (or 352,133 shares if the underwriter’s overallotment option is
exercised in full); or
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the average weekly reported trading volume of the common stock
during the four calendar weeks preceding the filing of a notice on Form 144 with respect to the sale.
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Sales by our affiliates under Rule 144 would
also be limited by manner of sale provisions and notice requirements and to the availability of current public information about us.
Registration Rights
The holders of the founder shares, placement units
(including securities contained therein) and warrants that may be issued upon conversion of working capital loans (and any shares of Class A
common stock issuable upon the exercise of the placement warrants or warrants issued upon conversion of the working capital loans) will
be entitled to registration rights pursuant to a registration rights agreement to be signed prior to or on the effective date of this
offering requiring us to register such securities for resale (in the case of the founder shares, only after conversion to our Class A
common stock). The holders of these securities are entitled to make up to three demands, excluding short form demands, that we register
such securities. In addition, the holders have certain “piggy-back” registration rights with respect to registration statements
filed subsequent to our completion of our initial business combination and rights to require us to register for resale such securities
pursuant to Rule 415 under the Securities Act. However, the registration rights agreement provides that we will not permit any registration
statement filed under the Securities Act to become effective until termination of the applicable lock-up period, which occurs: (i) in
the case of the founder shares, (a) with respect to 25% of such shares, upon consummation of our initial business combination, (b) with
respect to 25% of such shares, when the closing price of our Class A common stock exceeds $12.00 for any 20 trading days within a
30-trading day period following the consummation of our initial business combination, (c) with respect to 25% of such shares, when
the closing price of our Class A common stock exceeds $13.50 for any 20 trading days within a 30-trading day period following the
consummation of our initial business combination, and (d) with respect to 25% of such shares, when the closing price of our Class A
common stock exceeds $15.00 for any 20 trading days within a 30-trading day period following the consummation of our initial business
combination or earlier, in any case, if, following a business combination, we complete a liquidation, merger, stock exchange or other
similar transaction that results in all of our public stockholders having the right to exchange their shares of Class A common stock
for cash, securities or other property; and (ii) in the case of the placement warrants and the respective Class A common stock
underlying such warrants, 30 days after the completion of our initial business combination. We will bear the expenses incurred in
connection with the filing of any such registration statements.
Listing of Securities
We intend to apply to have
our units listed on the NASDAQ Global Market under the symbol “__”, and we anticipate that our common stock and warrants will
be listed on Nasdaq under the symbols “__” and “__”, respectively. We anticipate our units will be listed on Nasdaq
on or promptly after the effective date of the registration statement. Following the date the shares of our common stock and warrants
are eligible to trade separately, we anticipate that the shares of our common stock and warrants will be listed separately and as a unit
on Nasdaq.
CERTAIN UNITED STATES FEDERAL INCOME TAX CONSIDERATIONS
The following is a discussion of the material
U.S. federal income tax consequences of the acquisition, ownership and disposition of our units, shares of Class A common stock and
warrants, which we refer to collectively as our securities. Because the components of a unit are separable at the option of the holder,
the holder of a unit generally should be treated, for U.S. federal income tax purposes, as the owner of the underlying Class A common
stock and warrant components of the unit, as the case may be. As a result, the discussion below with respect to holders of Class A
common stock and warrants should also apply to holders of units (as the deemed owners of the underlying Class A common stock and
warrants that comprise the units). This discussion applies only to securities that are held as a capital asset for U.S. federal income
tax purposes and is applicable only to holders who purchased units in this offering.
This discussion does not describe all of the tax
consequences that may be relevant to you in light of your particular circumstances, such as the alternative minimum tax, the Medicare
tax on certain investment income and the different consequences that may apply if you are subject to special rules that apply to
certain types of investors, including but not limited to:
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our sponsor, founders, officers or directors;
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financial
institutions or financial services entities;
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governments or agencies or instrumentalities thereof;
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regulated investment companies and real estate investment trusts;
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expatriates or former long-term residents of the United States;
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dealers or traders subject to a mark to market method of accounting
with respect to the securities;
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persons holding the securities as part of a “straddle,”
hedge, integrated transaction or similar transaction;
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U.S. holders (as defined below) whose functional currency is
not the U.S. dollar;
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persons that actually or
constructively own five percent or more of our stock by vote or value;
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persons that acquired our securities pursuant to an exercise
of employee share options, in connection with employee share incentive plans or otherwise as compensation or in connection with services;
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partnerships or other pass through entities for U.S. federal
income tax purposes; and
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If a partnership
(or other entity classified as a partnership for U.S. federal income tax purposes) is the beneficial owner of our securities, the U.S.
federal income tax treatment of a partner in the partnership generally will depend on the status of the partner and the activities of
the partnership. Partnerships holding our securities and partners in such partnerships are urged to consult their own tax advisors.
This discussion is based on the Internal Revenue
Code of 1986, as amended (the “Code”), and administrative pronouncements, judicial decisions and final, temporary and proposed
Treasury regulations as of the date hereof, changes to any of which subsequent to the date of this prospectus (possibly with retroactive
effect) may affect the tax consequences described herein. This discussion does not address any aspect of state, local or non U.S. taxation,
or any U.S. federal taxes other than income taxes (such as gift and estate taxes).
We have not sought, and will not seek, a ruling
from the Internal Revenue Service (“IRS”) as to any U.S. federal income tax consequence described herein. The IRS may disagree
with the discussion herein, and its determination may be upheld by a court. Moreover, there can be no assurance that future legislation,
regulations, administrative rulings or court decisions will not adversely affect the accuracy of the statements in this discussion.
You are urged to consult your tax advisor with
respect to the application of U.S. federal tax laws to your particular situation, as well as any tax consequences arising under the laws
of any state, local or foreign jurisdiction.
THIS DISCUSSION OF U.S. FEDERAL INCOME TAX CONSIDERATIONS
IS FOR GENERAL INFORMATION PURPOSES ONLY AND IS NOT TAX ADVICE. WE URGE PROSPECTIVE HOLDERS TO CONSULT THEIR TAX ADVISORS CONCERNING THE
U.S. FEDERAL INCOME TAX CONSEQUENCES TO THEM OF ACQUIRING, OWNING AND DISPOSING OF OUR SECURITIES, AS WELL AS THE APPLICATION OF ANY,
STATE, LOCAL AND NON-U.S. INCOME, ESTATE AND OTHER TAX CONSIDERATIONS.
Personal Holding Company Status
We would be subject to a second level of U.S.
federal income tax on a portion of our income if we are determined to be a personal holding company, or PHC, for U.S. federal income tax
purposes. A U.S. corporation generally will be classified as a PHC for U.S. federal income tax purposes in a given taxable year if (i) at
any time during the last half of such taxable year, five or fewer individuals (without regard to their citizenship or residency and including
as individuals for this purpose certain entities such as certain tax-exempt organizations, pension funds and charitable trusts) own or
are deemed to own (pursuant to certain constructive ownership rules) more than 50% of the stock of the corporation by value and (ii) at
least 60% of the corporation’s adjusted ordinary gross income, as determined for U.S. federal income tax purposes, for such taxable
year consists of PHC income (which includes, among other things, dividends, interest, certain royalties, annuities and, under certain
circumstances, rents).
Depending on the date and size of our initial
business combination, it is possible that at least 60% of our adjusted ordinary gross income may consist of PHC income as discussed above.
In addition, depending on the concentration of our stock in the hands of individuals, including the members of our sponsor and certain
tax-exempt organizations, pension funds and charitable trusts, it is possible that more than 50% of our stock may be owned or deemed owned
(pursuant to the constructive ownership rules) by five or fewer such persons during the last half of a taxable year. Thus, no assurance
can be given that we will not become a PHC following this offering or in the future. If we are or were to become a PHC in a given taxable
year, we would be subject to an additional PHC tax, currently 20%, on our undistributed PHC income, which generally includes our taxable
income, subject to certain adjustments. The PHC requirements may apply to us in the taxable year of the offering and/or future taxable
years.
Allocation of Purchase Price and Characterization of a Unit
No
statutory, administrative or judicial authority directly addresses the treatment of a unit or instruments similar to a unit for U.S. federal
income tax purposes and, therefore, that treatment is not entirely clear. The acquisition of a unit should be treated for U.S. federal
income tax purposes as the acquisition of one share of our Class A common stock and one-half of one warrant, with each whole warrant
exercisable to acquire one share of our Class A common stock. We intend to treat the acquisition of a unit in this manner and, by
purchasing a unit, you will agree to adopt such treatment for tax purposes. For U.S. federal income tax purposes, each holder of a unit
must allocate the purchase price paid by such holder for such unit between the one share of Class A common stock and the one-half
of one warrant based on the relative fair market value of each at the time of issuance. No
statutory, administrative or judicial authority directly addresses how to determine the fair market value of securities, such as the Class A
common stock and the one-half of one warrant, that are included as part of a unit but that do not trade separately from the unit at such
time (which will be the case on the date the units are issued pursuant to this offering). Under U.S. federal income tax law, each investor
must make its own determination of such value based on all the relevant facts and circumstances. Therefore, we strongly urge each investor
to consult its tax advisor regarding the determination of value for these purposes. The price allocated to each share of common
stock and the one-half of one warrant should be the holder’s initial tax basis in such share or one-half of one warrant, as the
case may be. Any disposition of a unit should be treated for U.S. federal income tax purposes as a disposition of the share of Class A
common stock and the one-half of one warrant comprising the unit, and the amount realized on the disposition should be allocated between
the share of Class A common stock and one-half of one warrant based on their respective relative fair market values (as
determined by each such holder based on all the relevant facts and circumstances) at the time of disposition. The separation of
the share of common stock and the one-half of one warrant comprising a unit should not be a taxable event for U.S. federal income tax
purposes.
The foregoing treatment of the units and a holder’s
purchase price allocation are not binding on the IRS or the courts. Because there are no authorities that directly address instruments
that are similar to the units, no assurance can be given that the IRS or the courts will agree with the characterization described above
or the discussion below. Accordingly, each prospective investor is urged to consult its own tax advisors regarding the tax consequences
of an investment in a unit (including alternative characterizations of a unit). The balance of this discussion assumes that the characterization
of the units described above is respected for U.S. federal income tax purposes.
U.S. Holders
This section applies to you if you are a “U.S.
holder.” A U.S. holder is a beneficial owner of our units, shares of Class A common stock or warrants who or that is, for U.S.
federal income tax purposes:
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an individual who is a citizen or resident of the United States;
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a corporation (or other entity taxable as a corporation for
U.S. federal income tax purposes) organized in or under the laws of the United States, any state thereof or the District of Columbia
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an estate or trust the income of which is includible in gross
income for U.S. federal income tax purposes regardless of its source; or
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a trust, if (i) a court within the United States is
able to exercise primary supervision over the administration of the trust and one or more United States persons (as defined in the
Code) have authority to control all substantial decisions of the trust or (ii) it has a valid election in effect under Treasury
Regulations to be treated as a United States person.
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Taxation
of Distributions. If we pay distributions in
cash or other property (other than certain distributions of our stock or rights to acquire our stock) to U.S. holders of shares
of our Class A common stock, such distributions generally will constitute dividends for U.S. federal income tax purposes to the extent
paid from our current or accumulated earnings and profits, as determined under U.S. federal income tax principles. Distributions in excess
of current and accumulated earnings and profits will constitute a return of capital that will be applied against and reduce (but not below
zero) the U.S. holder’s adjusted tax basis in our Class A common stock. Any remaining excess will be treated as gain realized
on the sale or other disposition of the Class A common stock and will be treated as described under “— U.S. Holders —
Gain or Loss on Sale, Taxable Exchange or Other Taxable Disposition of Class A Common Stock and Warrants” below.
Dividends we pay
to a U.S. holder that is a taxable corporation generally will qualify for the dividends received deduction if the requisite holding period
is satisfied. With certain exceptions (including, but not limited to, dividends treated as investment income for purposes of investment
interest deduction limitations), and provided certain holding period requirements are met, dividends we pay to a non-corporate U.S. holder
may constitute “qualified dividends” subject to tax at the preferential tax rate accorded to long-term capital gains. It is
unclear whether the redemption rights with respect to the Class A common stock described in this prospectus may prevent a U.S. holder
from satisfying the applicable holding period requirements with respect to the dividends received deduction or the preferential tax rate
on qualified dividend income, as the case may be. If the holding period requirements are not satisfied, then a corporation may
not be able to qualify for the dividends received deduction and would have taxable income equal to the entire dividend amount, and non-corporate
holders may be subject to tax on such dividend at regular ordinary income tax rates instead of the preferential rate that applies to qualified
dividend income.
Gain
or Loss on Sale, Taxable Exchange or Other Taxable Disposition of Class A Common Stock and Warrants. Upon
a sale or other taxable disposition of our Class A common stock or warrants which, in general, would include a redemption of Class A
common stock or warrants that is treated as a sale of such securities as described below, and including as a result of a dissolution and
liquidation in the event we do not consummate an initial business combination within the required time period, a U.S. holder generally
will recognize capital gain or loss in an amount equal to the difference between the amount realized and the U.S. holder’s adjusted
tax basis in the Class A common stock or warrants so disposed of. Any such capital gain or loss generally will be long-term capital
gain or loss if the U.S. holder’s holding period for the Class A common stock or warrants so disposed of exceeds one year.
It is unclear, however, whether the redemption rights with respect to the Class A common stock described in this prospectus may suspend
the running of the applicable holding period for this purpose. If the running
of the holding period for the shares of Class A common stock is suspended, then non-corporate U.S. holders may not be able to satisfy
the one-year holding period requirement for long-term capital gain treatment, in which case any gain on a sale or taxable disposition
of the shares or warrants would be subject to short-term capital gain treatment and would be taxed at regular ordinary income tax rates.
Long-term capital gains recognized by non-corporate U.S. holders will be eligible to be taxed at reduced rates. The deductibility
of capital losses is subject to limitations.
Generally, the amount of gain or loss recognized
by a U.S. holder is an amount equal to the difference between (i) the sum of the amount of cash and the fair market value of any
property received in such disposition (or, if the Class A common stock or warrants are held as part of units at the time of the disposition,
the portion of the amount realized on such disposition that is allocated to the shares of Class A common stock or the warrants based
upon the then fair market values of the shares of Class A common stock and the warrants included in the units) and (ii) the
U.S. holder’s adjusted tax basis in its shares of Class A common stock or warrants so disposed of. A U.S. holder’s adjusted
tax basis in its shares of Class A common stock or warrants generally will equal the U.S. holder’s acquisition cost (that is,
as discussed above, determined based on the portion of the purchase price of a unit allocated to a share of Class A common stock
or one-half of one warrant or, as discussed below, the U.S. holder’s initial basis for the Class A common stock received upon
exercise of a warrant) less, in the case of a share of Class A common stock, any prior distributions treated as a return of capital.
Redemption
of Class A Common Stock. In the event that a U.S. holder’s shares of Class A
common stock is redeemed pursuant to the redemption provisions described in this prospectus under “Description of Securities —
Common Stock” or if we purchase a U.S. holder’s shares of Class A common stock in an open market transaction (each of
which we refer to as a “redemption”), the treatment of the transaction for U.S. federal income tax purposes will depend on
whether the redemption qualifies as a sale or exchange of the Class A common stock under Section 302 of the Code. If the redemption
qualifies as a sale or exchange of the Class A common stock, the U.S. holder will be treated as described under “— U.S.
Holders — Gain or Loss on Sale, Taxable Exchange or Other Taxable Disposition of Class A Common Stock and Warrants”
above. If the redemption does not qualify as a sale or exchange of the Class A common stock, the U.S. holder will be treated as receiving
a corporate distribution with the tax consequences described above under “— U.S. Holders — Taxation of Distributions”.
Whether a redemption qualifies for sale treatment will depend largely on the total number of shares of our stock treated as held by the
U.S. holder (including any stock constructively owned by the U.S. holder as a result of owning warrants) relative to all of our shares
outstanding both before and after the redemption. The redemption of Class A common stock generally will be treated as a sale of the
shares of Class A common stock (rather than as a corporate distribution) if the redemption (i) is “substantially disproportionate”
with respect to the U.S. holder, (ii) results in a “complete termination” of the U.S. holder’s interest in us or
(iii) is “not essentially equivalent to a dividend” with respect to the U.S. holder. These tests are explained more fully
below.
In determining whether any of the foregoing tests
are satisfied, a U.S. holder takes into account not only stock actually owned by the U.S. holder, but also shares of our stock that are
constructively owned by it. A U.S. holder may constructively own, in addition to stock owned directly, stock owned by certain related
individuals and entities in which the U.S. holder has an interest or that have an interest in such U.S. holder, as well as any stock the
U.S. holder has a right to acquire by exercise of an option, which would generally include common stock which could be acquired pursuant
to the exercise of the warrants. In order to meet the substantially disproportionate test, the percentage of our outstanding voting stock
actually and constructively owned by the U.S. holder immediately following the redemption of shares of Class A common stock must,
among other requirements, be less than 80% of the percentage of our outstanding voting stock actually and constructively owned by the
U.S. holder immediately before the redemption. There will be a complete termination of a U.S. holder’s interest if either (i) all
of the shares of our stock actually and constructively owned by the U.S. holder are redeemed or (ii) all of the shares of our stock
actually owned by the U.S. holder are redeemed and the U.S. holder is eligible to waive, and effectively waives in accordance with specific
rules, the attribution of stock owned by certain family members and the U.S. holder does not constructively own any other shares of our
stock (including any stock constructively owned by the U.S. holder as a result of owning warrants). The redemption of the Class A
common stock will not be essentially equivalent to a dividend with respect to a U.S. holder if the redemption results in a “meaningful
reduction” of the U.S. holder’s proportionate interest in us. Whether the redemption will result in a meaningful reduction
in a U.S. holder’s proportionate interest in us will depend on the particular facts and circumstances. However, the IRS has indicated
in a published ruling that even a small reduction in the proportionate interest of a small minority stockholder in a publicly held corporation
who exercises no control over corporate affairs may constitute such a “meaningful reduction.” A U.S. holder should consult
with its own tax advisors as to the tax consequences of a redemption.
If none of the foregoing tests is satisfied, then
the redemption will be treated as a corporate distribution and the tax effects will be as described under “— U.S. Holders —
Taxation of Distributions,” above. After the application of those rules, any remaining tax basis of the U.S. holder in the redeemed
shares of Class A common stock will be added to the U.S. holder’s adjusted tax basis in its remaining stock, or, if it has
none, to the U.S. holder’s adjusted tax basis in its warrants or possibly in other stock constructively owned by it. A U.S. holder
should consult its own tax advisors as to the allocation of any remaining basis.
Exercise,
Lapse or Redemption of a Warrant. Except as discussed below with respect to the cashless exercise of
a warrant, a U.S. holder generally will not recognize taxable gain or loss on the acquisition of common stock upon exercise of a warrant
for cash. The U.S. holder’s tax basis in the share of our Class A common stock received upon exercise of a warrant generally
will be an amount equal to the sum of the U.S. holder’s initial investment in the warrant (i.e., the sum of the portion of the U.S.
holder’s purchase price for a unit that is allocated to the one-half of one warrant, as described above under “— Allocation
of Purchase Price and Characterization of a Unit”) and the exercise price. The U.S. holder’s holding period for the common
stock received upon exercise of the warrant will begin on the date following the date of exercise (or possibly the date of exercise) of
the warrant and will not include the period during which the U.S. holder held the warrant. If a warrant is allowed to lapse unexercised,
a U.S. holder generally will recognize a capital loss equal to such holder’s tax basis in the warrant.
The tax consequences of a cashless exercise of
a warrant are not clear under current tax law. A cashless exercise may be tax-free, either because the exercise is not a gain realization
event or because the exercise is treated as a recapitalization for U.S. federal income tax purposes. In either situation, a U.S. holder’s
tax basis in the shares of Class A common stock received should generally equal the holder’s tax basis in the warrants exercised
therefor. If the cashless exercise were treated as not being a gain realization event (and not a recapitalization), a U.S. holder’s
holding period in the common stock would be treated as commencing on the date following the date of exercise (or possibly the date of
exercise) of the warrant and will not include the period during which the U.S. holder held the warrants. If the cashless exercise were
treated as a recapitalization, the holding period of the common stock would include the holding period of the warrants.
It is also possible that a cashless exercise could
be treated in part as a taxable exchange in which gain or loss would be recognized. In such event, a portion of the warrants to be exercised
on a cashless basis could, for U.S. federal income tax purposes, be deemed to have been surrendered in consideration for the exercise
price of the remaining warrants, which would be deemed to be exercised. For this purpose, a U.S. holder could be deemed to have surrendered
a number of warrants having an aggregate fair market value equal to the exercise price for the total number of warrants to be deemed exercised.
The U.S. holder would recognize capital gain or loss in an amount equal to the difference between the exercise price of the warrants deemed
exercised and the U.S. holder’s tax basis in the warrants deemed surrendered. In this case, a U.S. holder’s tax basis in the
shares of Class A common stock received would equal the sum of the U.S. holder’s initial investment in the warrants deemed
exercised (i.e., the sum of the portion of the U.S. holder’s purchase price for a unit that is allocated to the one-half of one
warrant, as described above under “— Allocation of Purchase Price and Characterization of a Unit”) and the exercise
price of such warrants. A U.S. holder’s holding period for the shares of Class A common stock received would commence on the
date following the date of exercise (or possibly the date of exercise) of the warrants; in either case, the holding period would
not include the period during which the U.S. holder held the warrants.
Due to the absence of authority on the U.S. federal
income tax treatment of a cashless exercise, there can be no assurance which, if any, of the alternative tax consequences and holding
periods described above would be adopted by the IRS or a court of law. Accordingly, U.S. holders should consult their tax advisors regarding
the tax consequences of a cashless exercise.
If
we redeem warrants for cash or if we purchase warrants in an open market transaction, such redemption or purchase generally will be treated
as a taxable disposition to the U.S. holder, taxed as described above under “— Gain or Loss on Sale, Taxable Exchange or Other
Taxable Disposition of Class A Common Stock and Warrants.” The tax consequences of
an exercise of a warrant occurring after our giving notice of an intention to redeem the warrants as described in the section of this
prospectus entitled “Description of Securities — Warrants — Public Warrants” are unclear under current law. In
the case of a cashless exercise, the exercise may be treated either as if we redeemed such warrant for shares of Class A common stock
or as an exercise of the warrant. If the cashless exercise of a warrant for shares of Class A common stock is treated as a redemption,
then such redemption generally should be treated as a tax-deferred recapitalization for U.S. federal income tax purposes, in which case
a U.S. holder should not recognize any gain or loss on such redemption and accordingly, a U.S. holder’s basis in the shares of Class A
common stock received should equal the U.S. holder’s basis in the warrant and the holding period of the shares of Class A common
stock would include the holding period of the warrant. If the cashless exercise of a warrant is treated as such, the tax consequences
generally should be as described in the previous paragraphs under this heading “U.S. Holders — Exercise, Lapse or Redemption
of a Warrant.” In the case of an exercise of a warrant for cash, the tax treatment generally should be as described above in the
first paragraph under the heading “U.S. Holders — Exercise, Lapse or Redemption of a Warrant.” Due to the lack of clarity
under current law regarding the treatment of an exercise of a warrant after our giving notice of an intention to redeem the warrant, there
can be no assurance as to which, if any, of the alternative tax consequences described above would be adopted by the IRS or a court of
law. Accordingly, U.S. holders should consult their tax advisors regarding the tax consequences of the exercise of a warrant occurring
after our giving notice of an intention to redeem the warrant as described above.
Possible
Constructive Distributions. The terms of each warrant provide for an adjustment to the number of shares
of Class A common stock for which the warrant may be exercised or to the exercise price of the warrant in certain events, as discussed
in the section of this prospectus captioned “Description of Securities — Warrants — Public Warrants.”
An adjustment which has the effect of preventing dilution generally is not taxable. The U.S. holders of the warrants would, however, be
treated as receiving a constructive distribution from us if, for example, the adjustment increases the warrant holders’ proportionate
interest in our assets or earnings and profits (e.g., through an increase in the number of shares of Class A common stock that would
be obtained upon exercise or through a decrease in the exercise price of the warrants) as a result of a distribution of cash or other
property to the holders of shares of our common stock which is taxable to the U.S. holders of such shares as described under “— U.S.
Holders — Taxation of Distributions” above. Such constructive distribution would be subject to tax as described under
that section in the same manner as if the U.S. holders of the warrants received a cash distribution from us equal to the fair market value
of such increased interest.
Information
Reporting and Backup Withholding. In general, information reporting requirements may apply to dividends
paid to a U.S. holder and to the proceeds of the sale or other disposition of our units, shares of Class A common stock and warrants,
unless the U.S. holder is an exempt recipient. Backup withholding may apply to such payments if the U.S. holder fails to provide a taxpayer
identification number or certification of exempt status or has been notified by the IRS that it is subject to backup withholding (and
such notification has not been withdrawn).
Backup
withholding is not an additional tax. Any amounts withheld under the backup withholding rules will be allowed as a refund
or a credit against a U.S. holder’s U.S. federal income tax liability provided the required information is timely furnished to the
IRS.
Non U.S. Holders
This section applies to you if you are a “Non
U.S. holder.” A Non U.S. holder is a beneficial owner of our units, shares of Class A common stock and warrants who or that
is, for U.S. federal income tax purposes:
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a non-resident alien individual, other than certain former citizens
and residents of the United States subject to U.S. tax as expatriates;
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a foreign corporation; or
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an estate or trust that is not a U.S. holder;
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but does not include an individual who is present in the United States
for 183 days or more in the taxable year of disposition. If you are such an individual, you should consult your tax advisor regarding
the U.S. federal income tax consequences of the sale or other disposition of a security.
Taxation
of Distributions. In general, any distributions (including
constructive distributions) we make to a Non-U.S. holder of shares of our Class A common stock, to the extent paid out of
our current or accumulated earnings and profits (as determined under U.S. federal income tax principles), will constitute dividends for
U.S. federal income tax purposes and, provided such dividends are not effectively connected with the Non-U.S. holder’s conduct of
a trade or business within the United States (and, if a tax treaty applies, are not attributable to a U.S. permanent establishment
or fixed base maintained by the Non-U.S. holder), we will be required to withhold tax from the gross amount of the dividend at a rate
of 30%, unless such Non-U.S. holder is eligible for a reduced rate of withholding tax under an applicable income tax treaty and provides
proper certification of its eligibility for such reduced rate (usually on an IRS Form W-8BEN or W-8BEN-E). In
the case of any constructive dividend, it is possible that this tax would be withheld from any amount owed to a Non-U.S. holder by the
applicable withholding agent, including cash distributions on other property or sale proceeds from warrants or other property subsequently
paid or credited to such holder. Any distribution not constituting a dividend will be treated first as reducing (but not below
zero) the Non-U.S. holder’s adjusted tax basis in its shares of our Class A common stock and, to the extent such distribution
exceeds the Non-U.S. holder’s adjusted tax basis, as gain realized from the sale or other disposition of the Class A common
stock, which will be treated as described under “— Non-U.S. Holders — Gain on Sale, Taxable Exchange or Other
Taxable Disposition of Class A Common Stock and Warrants” below. In addition, if we determine that we are likely to be classified
as a “United States real property holding corporation” (see “— Non-U.S. Holders — Gain on
Sale, Taxable Exchange or Other Taxable Disposition of Class A Common Stock and Warrants” below), we will withhold 15% of any
distribution that exceeds our current and accumulated earnings and profits, including
a distribution in redemption of shares of our Class A common stock. See also “Non-U.S. Holders — Possible Constructive
Distributions” for potential U.S. federal tax consequences with respect to constructive distributions.
The withholding tax does not apply to dividends
paid to a Non-U.S. holder who provides a Form W-8ECI, certifying that the dividends are effectively connected with the Non-U.S. holder’s
conduct of a trade or business within the United States (and, if a tax treaty applies, are not attributable to a U.S. permanent establishment
or fixed base maintained by the Non-U.S. holder). Instead, the effectively connected dividends will be subject to regular U.S. income
tax as if the Non-U.S. holder were a U.S. resident, subject to an applicable income tax treaty providing otherwise. A Non-U.S. holder
that is a corporation receiving effectively connected dividends may also be subject to an additional “branch profits tax”
imposed at a rate of 30% (or a lower treaty rate).
Gain on Sale, Taxable
Exchange or Other Taxable Disposition of Class A Common Stock and Warrants. Subject to the discussion
of FATCA and backup withholding below, a Non-U.S. holder generally will not be subject to U.S. federal income or withholding tax in respect
of gain recognized on a sale, taxable exchange or other taxable disposition of our Class A common stock, which would include a dissolution
and liquidation in the event we do not complete an initial business combination within 18 months from the closing of this offering, or
21 months from the closing of this offering if we have executed a letter of intent, agreement in principle or definitive agreement
for our initial business combination within 18 months from the closing of this offering but have not completed our initial business
combination within such 18-month period, or warrants (including an expiration or redemption of our warrants), in each case without
regard to whether those securities were held as part of a unit, unless:
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the gain is effectively connected with the conduct of a trade
or business by the Non-U.S. holder within the United States (and, under certain income tax treaties, is attributable to a United States
permanent establishment or fixed base maintained by the Non-U.S. holder); or
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we are or have been a “U.S.
real property holding corporation” for U.S. federal income tax purposes at any time during the shorter of the five-year period
ending on the date of disposition or the period that the Non-U.S. holder held our Class A common stock, and, in the case where shares
of our Class A common stock are regularly traded on an established securities market, the Non-U.S. holder has owned, directly or
constructively, more than 5% of our Class A common stock at any time within the shorter of the five-year period preceding the disposition
or such Non-U.S. holder’s holding period for the shares of our Class A common stock. There can be no assurance that our Class A
common stock will be treated as regularly traded on an established securities market for this purpose. If we are or have been
a “United States real property holding corporation” and you own warrants, you are urged to consult your own tax advisor regarding
the application of these rules.
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Unless an applicable income tax treaty provides
otherwise, gain described in the first bullet point above will be subject to tax at generally applicable U.S. federal income tax rates
as if the Non-U.S. holder were a U.S. resident. Any gains described in the first bullet point above of a Non-U.S. holder that is a foreign
corporation may also be subject to an additional “branch profits tax” at a 30% rate (or lower treaty rate).
If the second bullet point above applies to a
Non-U.S. holder, gain recognized by such holder on the sale, exchange or other disposition of our Class A common stock or warrants
will be subject to tax at generally applicable U.S. federal income tax rates. In addition, if our Class A common stock will not be
treated as regularly traded on an established securities market, a buyer of our Class A common stock or warrants from such holder
may be required to withhold U.S. federal income tax at a rate of 15% of the amount realized upon such disposition. We cannot determine
whether we will be a U.S. real property holding corporation in the future until we complete an initial business combination. We will be
classified as a U.S. real property holding corporation if the fair market value of our “U.S. real property interests” equals
or exceeds 50% of the sum of the fair market value of our worldwide real property interests plus our other assets used or held for use
in a trade or business, as determined for U.S. federal income tax purposes.
Redemption
of Class A Common Stock. The characterization for U.S. federal income tax purposes of the
redemption of a Non-U.S. holder’s Class A common stock pursuant to the redemption provisions described in this prospectus under
“Description of Securities — Common Stock” generally will correspond to the U.S. federal income tax characterization
of such a redemption of a U.S. holder’s Class A common stock, as described under “— U.S. Holders —
Redemption of Class A Common Stock” above, and the consequences of the redemption to the Non-U.S. holder will be as described
above under “— Non-U.S. Holders — Taxation of Distributions” and “— Non-U.S. Holders —
Gain on Sale, Taxable Exchange or Other Taxable Disposition of Class A Common Stock and Warrants,” as applicable.
Exercise, Lapse
or Redemption of a Warrant. The U.S. federal income tax treatment of a Non-U.S. holder’s exercise
of a warrant, or the lapse of a warrant held by a Non-U.S. holder, generally will correspond to the U.S. federal income tax treatment
of the exercise or lapse of a warrant by a U.S. holder, as described under “U.S. holders — Exercise, Lapse or Redemption
of a Warrant” above, although to the extent a cashless exercise results in a taxable exchange, the consequences would be similar
to those described above in “Non-U.S. Holders — Gain on Sale, Taxable Exchange or Other Taxable Disposition of Class A
Common Stock and Warrants.” The U.S. federal income tax treatment for a Non-U.S. holder of a redemption of warrants for Class A
common stock will correspond to the U.S. federal income tax treatment for a U.S. holder of a redemption of warrants for Class A common
stock, as described above in “U.S. Holders — Exercise, Lapse or Redemption of a Warrant.” The U.S. federal income tax
treatment for a Non-U.S. holder of a redemption of warrants for cash (or if we purchase warrants in an open market transaction) would
be similar to that described above under “Non-U.S. Holders — Gain on Sale, Taxable Exchange or Other Taxable Disposition of
Class A Common Stock and Warrants.”
Possible
Constructive Distributions. The terms of each
warrant provide for an adjustment to the number of shares of Class A common stock for which the warrant may be exercised or to the
exercise price of the warrant in certain events, as discussed in the section of this prospectus entitled “Description of Securities —Warrants —
Public Warrants.” An adjustment which has the effect of preventing dilution generally is not taxable. Nevertheless, the Non-U.S.
holders of the warrants would be treated as receiving a constructive distribution from us if, for example, the adjustment to the number
of such shares or to such exercise price increases the warrant holders’ proportionate interest in our assets or earnings and profits
(e.g., through an increase in the number of shares of Class A common stock that would be obtained upon exercise or through a decrease
in the exercise price of the warrant) as a result of a distribution of cash or other property, such as other securities, to the holders
of shares of our Class A common stock, or as a result of the issuance of a stock dividend to holders of shares of our Class A
common stock, in each case which is taxable to the holders of such shares as a distribution (as described under “Non-U.S. Holders
— Taxation of Distributions” above). Such constructive distribution would be subject to U.S. federal income tax
(including any applicable withholding) in the same manner as if the Non-U.S.
holders of the warrants received a cash distribution from us equal to the fair market value of such increased interest resulting from
the adjustment without any corresponding receipt of cash.
Information
Reporting and Backup Withholding. Information returns will be filed with the IRS in connection with
payments of dividends and the proceeds from a sale or other disposition of our units, shares of Class A common stock and warrants.
A Non-U.S. holder may have to comply with certification procedures to establish that it is not a United States person in order to
avoid information reporting and backup withholding requirements. The certification procedures required to claim a reduced rate of withholding
under a treaty generally will satisfy the certification requirements necessary to avoid the backup withholding as well. Backup
withholding is not an additional tax. The amount of any backup withholding from a payment to a Non-U.S. holder will be allowed
as a credit against such holder’s U.S. federal income tax liability and may entitle such holder to a refund, provided that the required
information is timely furnished to the IRS.
FATCA
Withholding Taxes. Provisions commonly referred to as “FATCA” impose withholding of 30%
on payments of dividends (including constructive dividends) on our common stock or warrants to “foreign financial institutions”
(which is broadly defined for this purpose and in general includes investment vehicles) and certain other non-U.S. entities unless various
U.S. information reporting and due diligence requirements (generally relating to ownership by U.S. persons of interests in or accounts
with those entities) have been satisfied by, or an exemption applies to, the payee (typically certified as to by the delivery of a properly
completed IRS Form W-8BEN-E). IRS has issued proposed regulations (on which
taxpayers may rely until final regulations are issued) that would generally not apply these withholding requirements to gross proceeds
from sales or other disposition proceeds from our securities. If FATCA withholding is imposed, under certain circumstances, a non-U.S.
holder might be eligible for refunds or credits of any amounts withheld by filing a U.S. federal income tax return (which may entail significant
administrative burden). Foreign financial institutions located in jurisdictions that have an intergovernmental agreement with the United States
governing FATCA may be subject to different rules. Prospective investors should consult their tax advisors regarding the effects of FATCA
on their investment in our securities.
THE
U.S. FEDERAL INCOME TAX DISCUSSION SET FORTH ABOVE IS INCLUDED FOR GENERAL
INFORMATION ONLY AND MAY NOT BE APPLICABLE DEPENDING UPON A HOLDER’S PARTICULAR SITUATION. HOLDERS ARE URGED TO CONSULT THEIR
OWN TAX ADVISORS WITH RESPECT TO THE TAX CONSEQUENCES TO THEM OF THE ACQUISITION, OWNERSHIP AND DISPOSITION OF OUR CLASS A COMMON
STOCK AND WARRANTS, INCLUDING THE TAX CONSEQUENCES UNDER STATE, LOCAL, ESTATE, NON-U.S. AND OTHER TAX LAWS AND TAX TREATIES AND THE
POSSIBLE EFFECTS OF CHANGES IN U.S. OR OTHER TAX LAWS.
UNDERWRITING
Subject to the terms and conditions stated in
the underwriting agreement dated the date of this prospectus, Goldman Sachs & Co. LLC (“Goldman Sachs”), the sole
book-running manager, has agreed to purchase, and we have agreed to sell to Goldman Sachs, the number of units set forth opposite Goldman
Sach’s name.
|
Underwriter
|
|
Number of Units
|
|
|
Goldman Sachs & Co. LLC
|
|
|
22,000,000
|
|
|
Total
|
|
|
22,000,000
|
|
The underwriting agreement provides that the obligations
of the underwriter to purchase the units included in this offering are subject to approval of legal matters by counsel and to other conditions.
The underwriter is obligated to purchase all of the units (other than those covered by the over-allotment option described below) if it
purchases any of the units. The offering of the units by the underwriter is subject to receipt and acceptance and subject to the underwriter’s
right to reject any order in whole or in part.
Units sold by the underwriter to the public will
initially be offered at the initial public offering price set forth on the cover of this prospectus. If all of the units are not sold
at the initial offering price, the underwriter may change the offering price and the other selling terms. The underwriter has advised
us that it does not intend to make sales to discretionary accounts.
If the underwriter sells more units than the total
number set forth in the table above, we have granted to the underwriter an option, exercisable for 45 days from the date of this
prospectus, to purchase up to 3,300,000 additional units at the public offering price less the underwriting discount. The underwriter
may exercise this option solely for the purpose of covering over-allotments, if any, in connection with this offering. Any units issued
or sold under the option will be issued and sold on the same terms and conditions as the other units that are the subject of this offering.
For financial advisory services provided by CCM in connection with this offering, we have agreed to pay CCM a fee in an amount equal to
0.3% of the aggregate proceeds of this offering (excluding the proceeds of the exercise of the overallotment option, if any) net of underwriter’s
out-of-pocket expenses. We will also engage CCM as an advisor in connection with our initial business combination for which it will earn
an advisory fee of 0.525% of the proceeds of this offering (excluding the proceeds of the exercise of the overallotment option, if any) payable at closing of our initial
business combination. CCM will also be entitled to an advisory fee equal to 0.825% of the aggregate proceeds of the exercise of the overallotment
option, if any, payable at closing of our initial business combination. CCM’s fees will be reimbursed to us by the underwriters
and will not result in any incremental fees to us.
We, our sponsor, officers and directors have agreed
that, for a period of 180 days from the date of this prospectus, we and they will not, without the prior written consent of the underwriter,
offer, sell, contract to sell, pledge or otherwise dispose of, directly or indirectly, any units, warrants, shares of common stock or
any other securities convertible into, or exercisable, or exchangeable for, shares of common stock, subject to certain exceptions. The
underwriter in its sole discretion may release any of the securities subject to these lock-up agreements at any time without notice. Our
sponsor, officers and directors are also subject to separate transfer restrictions on their founder shares, placement units, placement
shares and placement warrants pursuant to the insider letter as described herein.
Our sponsor, officers and directors have agreed
not to transfer, assign or sell any founder shares (i) with respect to 25% of such shares until consummation of our initial business
combination, (ii) with respect to 25% of such shares until the closing price of our common stock equals or exceeds $12.00 per share
(as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading
day period following the consummation of our initial business combination, (iii) with respect to 25% of such shares until the closing
price of our Class A common stock exceeds $13.50 for any 20 trading days within a 30-trading day period following the consummation
of our initial business combination, and (iv) with respect to 25% of such shares until the closing price of our Class A common
stock exceeds $15.00 for any 20 trading days within a 30-trading day period following the consummation of our initial business combination.
Any permitted transferees would be subject to the same restrictions and other agreements of our sponsor with respect to any founder shares.
We refer to such transfer restrictions throughout this prospectus as the lock-up. Notwithstanding the foregoing, if we complete a liquidation,
merger, stock exchange, reorganization or other similar transaction after our initial business combination that results in all of our
public stockholders having the right to exchange their shares of common stock for cash, securities or other property (except as described
herein under the section entitled “Principal Stockholders — Restrictions on Transfers of Founder Shares and Placement
Units”), the founder shares will be released from the lock-up.
Prior to this offering, there has been no public
market for our securities. Consequently, the initial public offering price for the units was determined by negotiations between us and
the underwriter.
Among the factors considered in determining the
initial public offering price were the history and prospects of companies whose principal business is the acquisition of other companies,
prior offerings of those companies, our management, our capital structure, and currently prevailing general conditions in the equity securities
markets, including current market valuations of publicly traded companies considered comparable to our company. We cannot assure you,
however, that the price at which the units, Class A common stock or warrants will sell in the public market after this offering will
not be lower than the initial public offering price or that an active trading market in our units, Class A common stock or warrants
will develop and continue after this offering.
We intend to apply to list
our units on Nasdaq under the symbol “__.” We cannot guarantee that our securities will be approved for listing on Nasdaq.
We expect that our Class A common stock and warrants will be listed under the symbols “__” and “__,” respectively,
once the Class A common stock and warrants begin separate trading.
The following table shows the underwriting discounts
and commissions that we are to pay to the underwriter in connection with this offering. These amounts are shown assuming both no exercise
and full exercise of the underwriter’s over-allotment option.
|
|
|
|
Payable by
FTAC Emerald
Acquisition Corp.
|
|
|
|
|
|
No Exercise
|
|
|
Full Exercise
|
|
|
Per Unit(1)
|
|
|
$
|
0.55
|
|
|
$
|
0.55
|
|
|
Total(1)
|
|
|
$
|
12,100,000
|
|
|
$
|
13,915,000
|
|
|
|
(1)
|
Includes
$0.35 per unit, or $7,700,000 (or $8,855,000 if the over-allotment option is exercised in full)
in the aggregate, payable to the underwriter for deferred underwriting commissions to be placed in a trust account located in the United States
as described herein. The deferred commissions will be released to the underwriter only on completion of an initial business combination,
in an amount equal to $0.40 multiplied by the number of shares of Class A common stock sold as part of the units in this offering,
as described in this prospectus.
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If we do not complete our initial business combination
and subsequently liquidate, the trustee and the underwriter has agreed that (i) the underwriter will forfeit any rights or claims
to its deferred underwriting discounts and commissions, including any accrued interest thereon, then in the trust account upon liquidation,
and (ii) that the deferred underwriter’s discounts and commissions will be distributed on a pro rata basis, including interest
earned on the funds held in the trust account and not previously released to us to pay our taxes to the public stockholders.
In connection with the offering, the underwriter
may purchase and sell units in the open market. Purchases and sales in the open market may include short sales, purchases to cover short
positions, which may include purchases pursuant to the over-allotment option and stabilizing purchases, in accordance with Regulation
M under the Exchange Act:
|
|
•
|
Short sales involve secondary market sales by the underwriter
of a greater number of units than it is required to purchase in the offering.
|
|
|
•
|
“Covered” short sales are sales of units in an amount
up to the number of units represented by the underwriter’s over-allotment option.
|
|
|
•
|
“Naked” short sales are sales of units in an amount
in excess of the number of units represented by the underwriter’s over-allotment option.
|
|
|
•
|
Covering transactions involve purchases of units either pursuant
to the over-allotment option or in the open market after the distribution has been completed in order to cover short positions.
|
|
|
•
|
To close a naked short position, the underwriter must purchase
units in the open market after the distribution has been completed. A naked short position is more likely to be created if the underwriter
is concerned that there may be downward pressure on the price of the units in the open market after pricing that could adversely affect
investors who purchase in the offering.
|
|
|
•
|
To close a covered short position, the underwriter must purchase
units in the open market after the distribution has been completed or must exercise the over-allotment option. In determining the source
of units to close the covered short position, the underwriter will consider, among other things, the price of units available for purchase
in the open market as compared to the price at which it may purchase units through the over-allotment option.
|
|
|
•
|
Stabilizing transactions involve bids to purchase units so long
as the stabilizing bids do not exceed a specified maximum.
|
Purchases to cover short positions and stabilizing
purchases, as well as other purchases by the underwriter for its own accounts, may have the effect of preventing or retarding a decline
in the market price of the units. They may also cause the price of the units to be higher than the price that would otherwise exist in
the open market in the absence of these transactions. The underwriter may conduct these transactions in the over-the-counter market or
otherwise. If the underwriter commences any of these transactions, it may discontinue them at any time.
We estimate that our portion of the total expenses
of this offering payable by us will be $540,000, excluding underwriting discounts and commissions. We have also agreed to pay the FINRA-related
fees and expenses of the underwriter’s legal counsel, not to exceed $25,000. The underwriter has agreed to reimburse us for certain
expenses we incur in connection with this offering.
We have agreed to indemnify the underwriter against
certain liabilities, including liabilities under the Securities Act, or to contribute to payments the underwriter may be required to make
because of any of those liabilities.
We are not under any contractual obligation to
engage the underwriter to provide any services for us after this offering but we may do so at our discretion. However, the underwriter
may introduce us to potential target businesses or assist us in raising additional capital in the future, including by acting as a placement
agent in private offering or underwriting or arranging debt financing or providing financial advisory services to us in connection with
a business combination. If the underwriter provides services to us after this offering, we may pay the underwriter fair and reasonable
fees that would be determined at that time in an arm’s length negotiation; provided that no agreement will be entered into with
the underwriter and no fees for such services will be paid to the underwriter prior to the date that is 60 days from the date of
this prospectus, unless such payment would not be deemed underwriter’s compensation in connection with this offering and we may
pay the underwriter or any entity with which it is affiliated a finder’s fee or other compensation for services rendered to us in
connection with the completion of a business combination. Any fees we may pay the underwriter or its affiliates for services rendered
to us after this offering may be contingent on the completion of a business combination and may include non-cash compensation. The underwriter
or its affiliates that provide these services to us may have a potential conflict of interest given that the underwriter is entitled to
the deferred portion of its underwriting compensation for this offering only if an initial business combination is completed within the
specified timeframe.
The underwriter and its respective affiliates
are full service financial institutions engaged in various activities, which may include sales and trading, commercial and investment
banking, advisory, investment management, investment research, principal investment, hedging, market making, brokerage and other financial
and non-financial activities and services. The underwriter and its respective affiliates have provided, and may in the future provide,
a variety of these services to the company, our sponsor, any business combination target and/or their respective affiliates and related
parties, for which the underwriter and its affiliates received or will receive customary fees and expenses. In addition, in the ordinary
course of their business activities, the underwriter and its affiliates may make or hold a broad array of investments and actively trade
debt and equity securities (or related derivative securities) and financial instruments (including bank loans) for their own account and
for the accounts of their customers. Such investments and securities activities may involve securities and/or instruments of ours or our
affiliates. The underwriter and its affiliates may also make investment recommendations and/or publish or express independent research
views in respect of such securities or financial instruments and may hold, or recommend to clients that they acquire, long and/or short
positions in such securities and instruments.
Financial Advisors
CCM, a division of
J.V.B. Financial Group, LLC, itself a broker dealer subsidiary of Cohen & Company Inc. (of which our Chairman’s son is
also Chairman of the Board and a controlling shareholder), is acting as our independent financial advisor in connection with this
offering, for which it will receive customary fees. Affiliates of CCM have and manage investment vehicles with a passive investment
in our sponsor, any of which may purchase units in this offering. CCM is engaged to represent our interests only, is independent of
the underwriter and is not a party to any securities purchase agreement with us, the underwriter or investors in relation to this
offering; it is acting as an independent financial adviser as defined in FINRA Rule 5110(j)(9). CCM is not participating (within the
meaning of FINRA Rule 5110(j)(16)) in this offering, as such it is not involved in the preparation of the offering document, acting
as an underwriter and will not sell or offer to sell any securities in this offering, nor will it identify or solicit potential
investors in this offering.
Resale Restrictions
Notice to Canadian Residents
The securities may be sold in Canada only to purchasers
purchasing, or deemed to be purchasing, as principal that are accredited investors, as defined in National Instrument 45-106 Prospectus
Exemptions or subsection 73.3(1) of the Securities Act (Ontario), and are permitted clients, as defined in National Instrument 31-103
Registration Requirements, Exemptions, and Ongoing Registrant Obligations. Any resale of the securities must be made in accordance with
an exemption form, or in a transaction not subject to, the prospectus requirements of applicable securities laws.
Securities legislation in certain provinces or
territories of Canada may provide a purchaser with remedies for rescission or damages if this offering memorandum (including any amendment
thereto) contains a misrepresentation, provided that the remedies for rescission or damages are exercised by the purchaser within the
time limit prescribed by the securities legislation of the purchaser’s province or territory. The purchaser should refer to any
applicable provisions of the securities legislation of the purchaser’s province or territory of these rights or consult with a legal
advisor.
Pursuant to section 3A.3 of National Instrument
33-105 Underwriting Conflicts (NI 33-105), the underwriter is not required to comply with the disclosure requirements of NI 33-105 regarding
underwriter conflicts of interest in connection with this offering.
Notice to Prospective Investors in the European
Economic Area
In relation to each Member State of the European
Economic Area which has implemented the Prospectus Regulation (each, a “Relevant Member State”) an offer to the public of
the units may not be made in that Relevant Member State, except that an offer to the public in that Relevant Member State of the units
may be made at any time under the following exemptions under the Prospectus Regulation:
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|
(a)
|
to any legal entity which is a qualified investor as defined in the Prospectus Regulation;
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|
|
(b)
|
to fewer than 150 natural or legal persons (other than qualified investors as defined in the Prospectus Directive), subject to obtaining
the prior consent of the underwriter for any such offer; or
|
|
|
(c)
|
in any other circumstances falling within Article 3(2) of the Prospectus Directive, provided that no such offer of the units
shall result in a requirement for the publication by us or any underwriter of a prospectus pursuant to Article 3 of the Prospectus
Regulation.
|
provided that no such offer of units shall require the company or any
underwriter to publish a prospectus pursuant to Article 3 of the Prospectus Regulation or supplement a prospectus pursuant to Article 23
of the Prospectus Regulation.
For the purposes of this provision, the expression an “offer
to the public” in relation to the units in any Relevant Member State means the communication in any form and by any means of sufficient
information on the terms of the offer and the units to be offered so as to enable an investor to decide to purchase the units, as the
same may be varied in that Member State by any measure implementing the Prospectus Regulation in that Member State, the expression “Prospectus
Regulation” means Regulation (EU) 2017/1129.
Each person in a Relevant Member State who receives any communication
in respect of, or who acquires any units under, the offering contemplated hereby will be deemed to have represented, warranted and agreed
to and with the underwriter and its affiliates and the company that:
|
|
(i)
|
it is a qualified investor within the meaning of the Prospectus Regulation; and
|
|
|
(ii)
|
in the case of any units acquired by it as a financial intermediary, as that term is used in Article 5 of the Prospectus Regulation,
(i) the units acquired by it in the offering have not been acquired on a non-discretionary basis on behalf of, nor have they been
acquired with a view to their offer or resale to, persons in any Relevant Member State other than qualified investors, as that term is
defined in the Prospectus Regulation, or have been acquired in other circumstances falling within the points (a) to (d) of Article 1(4) of
the Prospectus Regulation and the prior consent of the Joint Global Coordinators has been given to the offer or resale; or (ii) where
the units have been acquired by it on behalf of persons in any Relevant Member State other than qualified investors, the offer of those
Offer Shares to it is not treated under the Prospectus Regulation as having been made to such persons.
|
The company, the underwriter and its affiliates,
and others will rely upon the truth and accuracy of the foregoing representation, acknowledgement and agreement. Notwithstanding the above,
a person who is not a qualified investor and who has notified the Joint Global Coordinators of such fact in writing may, with the prior
consent of the Joint Global Coordinators, be permitted to acquire units in the offering.
This European Economic Area selling restriction
is in addition to any other selling restrictions set out below.
Notice to Prospective Investors in the Dubai
International Financial Centre
This prospectus relates to an Exempt Offer in accordance
with the Offered Securities Rules of the Dubai Financial Services Authority (“DFSA”). This prospectus is intended for
distribution only to persons of a type specified in the Offered Securities Rules of the DFSA. It must not be delivered to, or relied
on by, any other person. The DFSA has no responsibility for reviewing or verifying any documents in connection with Exempt Offers. The
DFSA has not approved this prospectus nor taken steps to verify the information set forth herein and has no responsibility for the prospectus.
The units to which this prospectus relates may be illiquid and/or subject to restrictions on their resale. Prospective purchasers of the
units offered should conduct their own due diligence on the units. If you do not understand the contents of this prospectus you should
consult an authorized financial advisor.
Notice to Prospective Investors in Australia
No placement document, prospectus, product disclosure
statement or other disclosure document has been lodged with the Australian Securities and Investments Commission (“ASIC”),
in relation to the offering. This prospectus does not constitute a prospectus, product disclosure statement or other disclosure document
under the Corporations Act 2001 (the “Corporations Act”), and does not purport to include the information required for a prospectus,
product disclosure statement or other disclosure document under the Corporations Act.
Any offer in Australia of the units may only be
made to persons (the “Exempt Investors”) who are “sophisticated investors” (within
the meaning of section 708(8) of the Corporations Act), “professional investors” (within
the meaning of section 708(11) of the Corporations Act) or otherwise pursuant to one or more exemptions contained in section 708 of the
Corporations Act so that it is lawful to offer the units without disclosure to investors under Chapter 6D of the Corporations Act.
The units applied for by Exempt Investors
in Australia must not be offered for sale in Australia in the period of 12 months after the date of allotment under the offering,
except in circumstances where disclosure to investors under Chapter 6D of the Corporations Act would not be required pursuant to an exemption
under section 708 of the Corporations Act or otherwise or where the offer is pursuant to a disclosure document which complies with Chapter
6D of the Corporations Act. Any person acquiring units must observe such Australian on-sale restrictions.
This prospectus contains general information only
and does not take account of the investment objectives, financial situation or particular needs of any particular person. It does not
contain any securities recommendations or financial product advice. Before making an investment decision, investors need to consider whether
the information in this prospectus is appropriate to their needs, objectives and circumstances, and, if necessary, seek expert advice
on those matters.
Notice to Prospective Investors in Switzerland
The Class A common stock may not be publicly
offered in Switzerland and will not be listed on the SIX Swiss Exchange (“SIX”) or on any other stock exchange or regulated
trading facility in Switzerland. This document does not constitute a prospectus within the meaning of, and has been prepared without regard
to the disclosure standards for issuance prospectuses under, the Swiss Financial Services Act (“FinSA”), the disclosure standards
for listing prospectuses under art. 27 ff. of the SIX Listing Rules or the listing rules of any other stock exchange or regulated
trading facility in Switzerland. Neither this document nor any other offering or marketing material relating to the Class A common
stock or the offering may be publicly distributed or otherwise made publicly available in Switzerland.
Neither this document nor any other offering or
marketing material relating to the offering, the company, the units have been or will be filed with or approved by any Swiss regulatory
authority. In particular, this document will not be filed with, and the offer of units will not be supervised by, the Swiss Financial
Market Supervisory Authority FINMA (FINMA), and the offer of units has not been and will not be authorized under the Swiss Federal Act
on Collective Investment Schemes (“CISA”). The investor protection afforded to acquirers of interests in collective investment
schemes under the CISA does not extend to acquirers of units.
Notice to Prospective Investors in the United
Kingdom
This Prospectus and any other material in relation
to the offering described herein is only being distributed to, and is only directed at, and any investment or investment activity to which
this Prospectus relates is available only to, and will be engaged in only with persons who are (i) persons having professional experience
in matters relating to investments who fall within the definition of investment professionals in Article 19(5) of the FPO: or
(ii) high net worth entities falling within Article 49(2)(a) to (d) of the FPO: (iii) outside the UK; or (iv) persons
to whom an invitation or inducement to engage in investment activity (within the meaning of Section 21 of the FSMA) in connection
with the issue or sale of any units may otherwise lawfully be communicated or caused to be communicated (all such persons together being
referred to as “Relevant Persons”). The units are only available in the United Kingdom to, and any invitation, offer or agreement
to purchase or otherwise acquire the units will be engaged in only with, the Relevant Persons. This Prospectus and its contents are confidential
and should not be distributed, published or reproduced (in whole or in part) or disclosed by recipients to any other person in the United
Kingdom. Any person in the United Kingdom that is not a Relevant Person should not act or rely on this Prospectus or any of its contents.
No units have been offered or will be offered pursuant
to the offering to the public in the United Kingdom prior to the publication of a prospectus in relation to the units which has been approved
by the Financial Conduct Authority, except that the units may be offered to the public in the United Kingdom at any time:
|
|
(i)
|
to any legal entity which is a qualified investor as defined under Article 2 of the UK Prospectus Regulation;
|
|
|
(ii)
|
to fewer than 150 natural or legal persons (other than qualified investors as defined under Article 2 of the UK Prospectus Regulation),
subject to obtaining the prior consent of the Global Coordinators for any such offer; or
|
|
|
(iii)
|
in any other circumstances falling within Section 86 of the FSMA.
|
provided that no such offer of the units shall require the company
and/or the underwriter or any of its affiliates to publish a prospectus pursuant to Section 85 of the FSMA or supplement a prospectus
pursuant to Article 23 of the UK Prospectus Regulation. For the purposes of this provision, the expression an “offer to the
public” in relation to the units in the United Kingdom means the communication in any form and by any means of sufficient information
on the terms of the offer and any units to be offered so as to enable an investor to decide to purchase or subscribe for any units and
the expression “UK Prospectus Regulation” means Regulation (EU) 2017/1129 as it forms part of domestic law by virtue of the
European Union (Withdrawal) Act 2018.
Each person in the United Kingdom who acquires
any units in the offering or to whom any offer is made will be deemed to have represented, acknowledged and agreed to and with the Company,
the underwriter and its affiliates that it meets the criteria outlined in this section.
Notice to Prospective Investors in France
Neither this prospectus nor any other offering
material relating to the units described in this prospectus has been submitted to the clearance procedures of the Autorité des
Marchés Financiers or by the competent authority of another member state of the European Economic Area and notified to the Autorité
des Marchés Financiers. The units have not been offered or sold and will not be offered or sold, directly or indirectly, to the
public in France. Neither this prospectus nor any other offering material relating to the units has been or will be:
|
|
(i)
|
released, issued, distributed or caused to be released, issued or distributed to the public in France; or
|
|
|
(ii)
|
used in connection with any offer for subscription or sale of the units to the public in France.
|
Such offers, sales and distributions will be made in France only:
|
|
(i)
|
to qualified investors (investisseurs qualifiés) and/or to a restricted circle of investors (cercle restreint d’investisseurs),
in each case investing for their own account, all as defined in, and in accordance with, Article L.411-2, D.411-1, D.411-2, D.734-1,
D.744-1, D.754-1 and D.764-1 of the French Code monétaire et financier;
|
|
|
(ii)
|
to investment services providers authorized to engage in portfolio management on behalf of third parties; or
|
|
|
(iii)
|
in a transaction that, in accordance with article L.411-2-II-1° -or-2° -or 3° of the French Code monétaire et financier
and article 211-2 of the General Regulations (Règlement Général) of the Autorité des Marchés Financiers,
does not constitute a public offer (appel public à l’épargne).
|
The units may be resold directly or indirectly, only in compliance
with Articles L.411-1, L.411-2, L.412-1 and L.621-8 through L.621-8-3 of the French Code monétaire et financier.
Notice to Prospective Investors in Hong Kong
The units may not be offered or sold in Hong Kong
by means of any document other than (i) in circumstances which do not constitute an offer to the public within the meaning of the
Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32 of the Laws of Hong Kong) (“Companies (Winding Up and Miscellaneous
Provisions) Ordinance”) or which do not constitute an invitation to the public within the meaning of the Securities and Futures
Ordinance (Cap. 571 of the Laws of Hong Kong) (“Securities and Futures Ordinance”), or (ii) to “professional investors”
as defined in the Securities and Futures Ordinance and any rules made thereunder, or (iii) in other circumstances which do not
result in the document being a “prospectus” as defined in the Companies (Winding Up and Miscellaneous Provisions) Ordinance,
and no advertisement, invitation or document relating to the units may be issued or may be in the possession of any person for the purpose
of issue (in each case whether in Hong Kong or elsewhere), which is directed at, or the contents of which are likely to be accessed or
read by, the public in Hong Kong (except if permitted to do so under the securities laws of Hong Kong) other than with respect to units
which are or are intended to be disposed of only to persons outside Hong Kong or only to “professional investors” in Hong
Kong as defined in the Securities and Futures Ordinance and any rules made thereunder.
Notice to Prospective Investors in Japan
The units have not been and will not be registered
under the Financial Instruments and Exchange Law of Japan (Law No. 25 of 1948, as amended) and, accordingly, will not be offered
or sold, directly or indirectly, in Japan, or for the benefit of any Japanese Person or to others for re-offering or resale, directly
or indirectly, in Japan or to any Japanese Person, except in compliance with all applicable laws, regulations and ministerial guidelines
promulgated by relevant Japanese governmental or regulatory authorities in effect at the relevant time. For the purposes of this paragraph,
“Japanese Person” shall mean any person resident in Japan, including any corporation or other entity organized under the laws
of Japan.
Notice to Prospective Investors in Singapore
This prospectus has not been registered as a prospectus
with the Monetary Authority of Singapore. Accordingly, this prospectus and any other document or material in connection with the offer
or sale, or invitation for subscription or purchase, of the units may not be circulated or distributed, nor may the units be offered or
sold, or be made the subject of an invitation for subscription or purchase, whether directly or indirectly, to persons in Singapore other
than (i) to an institutional investor (as defined under Section 4A of the Securities and Futures Act, Chapter 289 of Singapore
(the “SFA”)) under Section 274 of the SFA, (ii) to a relevant person (as defined in Section 275(2) of
the SFA) pursuant to Section 275(1) of the SFA, or any person pursuant to Section 275(1A) of the SFA, and in accordance
with the conditions specified in Section 275 of the SFA or (iii) otherwise pursuant to, and in accordance with the conditions
of, any other applicable provision of the SFA, in each case subject to conditions set forth in the SFA.
Where the units are subscribed or purchased under
Section 275 of the SFA by a relevant person which is a corporation (which is not an accredited investor (as defined in Section 4A
of the SFA)) the sole business of which is to hold investments and the entire share capital of which is owned by one or more individuals,
each of whom is an accredited investor, the securities (as defined in Section 239(1) of the SFA) of that corporation shall not
be transferable for 6 months after that corporation has acquired the units under Section 275 of the SFA except: (1) to an institutional
investor under Section 274 of the SFA or to a relevant person (as defined in Section 275(2) of the SFA), (2) where
such transfer arises from an offer in that corporation’s securities pursuant to Section 275(1A) of the SFA, (3) where
no consideration is or will be given for the transfer, (4) where the transfer is by operation of law, (5) as specified in Section 276(7) of
the SFA, or (6) as specified in Regulation 32 of the Securities and Futures (Offers of Investments) (Shares and Debentures) Regulations
2005 of Singapore (“Regulation 32”).
Where the units are subscribed or purchased under
Section 275 of the SFA by a relevant person which is a trust (where the trustee is not an accredited investor (as defined in Section 4A
of the SFA)) whose sole purpose is to hold investments and each beneficiary of the trust is an accredited investor, the beneficiaries’
rights and interest (howsoever described) in that trust shall not be transferable for 6 months after that trust has acquired the units
under Section 275 of the SFA except: (1) to an institutional investor under Section 274 of the SFA or to a relevant person
(as defined in Section 275(2) of the SFA), (2) where such transfer arises from an offer that is made on terms that such
rights or interest are acquired at a consideration of not less than S$200,000 (or its equivalent in a foreign currency) for each transaction
(whether such amount is to be paid for in cash or by exchange of securities or other assets), (3) where no consideration is or will
be given for the transfer, (4) where the transfer is by operation of law, (5) as specified in Section 276(7) of the
SFA, or (6) as specified in Regulation 32.
Notice to Prospective Investors in the Cayman
Islands
No offer or invitation to subscribe for our securities
may be made to the public in the Cayman Islands.
LEGAL MATTERS
Certain legal matters in connection with this
offering will be passed upon for us by Reed Smith LLP. Certain legal matters in connection with this offering will be passed upon for
the underwriter by Winston & Strawn LLP.
EXPERTS
The audited financial statements included in this
prospectus have been audited by WithumSmith+Brown, PC, independent registered public accounting firm, as set forth in their report thereon
appearing in this prospectus, and are included in reliance on such report given on the authority of WithumSmith+Brown, PC as experts in
accounting and auditing.
WHERE YOU CAN FIND ADDITIONAL INFORMATION
We have filed with the SEC a registration statement
on Form S-1 under the Securities Act with respect to the securities we are offering by this prospectus. This prospectus does not
contain all of the information included in the registration statement. For further information about us and our securities, you should
refer to the registration statement and the exhibits and schedules filed with the registration statement. Whenever we make reference in
this prospectus to any of our contracts, agreements or other documents, the references are materially complete but may not include a description
of all aspects of such contracts, agreements or other documents, and you should refer to the exhibits attached to the registration statement
for copies of the actual contract, agreement or other document.
Upon completion of this offering, we will be subject
to the information requirements of the Exchange Act and will file annual, quarterly and current event reports, proxy statements and other
information with the SEC. You can read our SEC filings, including the registration statement, over the Internet at the SEC’s website
at www.sec.gov.
FTAC EMERALD ACQUISITION CORP.
INDEX TO FINANCIAL STATEMENTS
|
|
|
Page
|
|
Report of Independent Registered Public Accounting Firm
|
|
F-2
|
|
Balance Sheets as of September 30, 2021 (unaudited)
and June 30, 2021
|
|
F-3
|
|
Statements of Operations for the period
from February 19, 2021 (inception) through September 30, 2021 (unaudited) and for the period from
February 19, 2021 (inception) through June 30, 2021
|
|
F-4
|
|
Statements of Changes in Stockholder’s
Equity for the period from February 19, 2021 (inception) through September 30, 2021 and for the
period from February 19, 2021 (inception) through June 30, 2021 (audited)
|
|
F-5
|
|
Statements of Cash Flows for the period
from February 19, 2021 (inception) through September 30, 2021 and for the period from February
19, 2021 (inception) through June 30, 2021 (audited)
|
|
F-6
|
|
Notes to Financial Statements
|
|
F-7
|
Report
of Independent Registered Public Accounting Firm
To the Stockholder and the Board of Directors of
FTAC Emerald Acquisition Corp.
Opinion on the Financial Statements
We have audited the accompanying balance sheet
of FTAC Emerald Acquisition Corp., formerly known as Emerald ESG Acquisition Corp. (the “Company”) as of June 30, 2021,
the related statements of operations, changes in stockholder’s equity and cash flows for the period from February 19, 2021
(inception) through June 30, 2021, and the related notes (collectively referred to as the “financial statements”). In
our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of June 30,
2021, and the results of its operations and its cash flows for the period from February 19, 2021 (inception) through June 30,
2021, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility
of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We
are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (the "PCAOB") and
are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and
regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the
standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged
to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding
of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal
control over financial reporting. Accordingly, we express no such opinion.
Our audit included performing procedures to assess
the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond
to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial
statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as
evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.
/s/ WithumSmith+Brown, PC
We have served as the Company's auditor since 2021.
New York, New York
November 19, 2021
FTAC EMERALD ACQUISITION
CORP.
BALANCE SHEETS
|
|
|
September 30, 2021
|
|
|
June 30,
|
|
|
|
|
(Unaudited)
|
|
|
2021
|
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
Cash
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
Total Current Assets
|
|
|
25,000
|
|
|
|
25,000
|
|
|
Deferred Offering Costs
|
|
|
105,160
|
|
|
|
—
|
|
|
Total Assets
|
|
$
|
130,160
|
|
|
$
|
25,000
|
|
|
Liabilities and Stockholder’s Equity
|
|
|
|
|
|
|
|
|
|
Accrued offering costs and expenses
|
|
$
|
37,235
|
|
|
$
|
208
|
|
|
Promissory note – related party
|
|
|
68,133
|
|
|
|
|
|
|
Total current liabilities
|
|
|
105,368
|
|
|
|
208
|
|
|
Commitments and Contingencies
|
|
|
|
|
|
|
|
|
|
Stockholder’s Equity:
|
|
|
|
|
|
|
|
|
|
Preferred stock, $0.0001 par value; 1,000,000 shares
authorized; none issued or outstanding
|
|
|
—
|
|
|
|
—
|
|
|
Class A common stock, $0.0001 par value; 42,000,000 shares authorized; none issued or outstanding
|
|
|
—
|
|
|
|
—
|
|
|
Class B common stock, $0.0001 par value; 10,000,000 shares authorized; 8,763,333 shares issued and outstanding(1)
|
|
|
876
|
|
|
|
876
|
|
|
Additional paid-in capital
|
|
|
24,124
|
|
|
|
24,124
|
|
|
Accumulated deficit
|
|
|
(208
|
)
|
|
|
(208
|
)
|
|
Total Stockholder’s equity
|
|
|
24,792
|
|
|
|
24,792
|
|
|
Total Liabilities and Stockholder’s Equity
|
|
$
|
130,160
|
|
|
$
|
25,000
|
|
|
(1)
|
Includes up to 1,133,333 shares of
Class B Common stock subject to forfeiture if the over-allotment option is not exercised in full or in part by the underwriter
(see Note 7). On June 2, 2021, the Sponsor purchased 7,992,750 Founder Shares and on October 14, 2021, the Company effected
a 1.1014-for-1.0 stock split resulting in Founder Shares outstanding of 8,803,333. On November 12, 2021, the Company effected a 0.9955-for-1.0
stock split resulting in 8,763,333 Founder Shares outstanding. All shares and related amounts have been retroactively restated.
|
The accompanying notes are
an integral part of these financial statements.
FTAC EMERALD ACQUISITION CORP.
STATEMENTS OF OPERATIONS
|
|
|
For the period from February 19, 2021 (inception) through September 30, 2021
|
|
|
For the period from February 19, 2021 (inception) through
June 30,
|
|
|
|
|
(Unaudited)
|
|
|
2021
|
|
|
Formation costs
|
|
$
|
208
|
|
|
$
|
208
|
|
|
Net loss
|
|
$
|
(208
|
)
|
|
$
|
(208
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted weighted average Class B Common stock outstanding(1)
|
|
|
7,630,000
|
|
|
|
7,630,000
|
|
|
Basic and diluted net loss per Class B Common stock shares
|
|
$
|
(0.00
|
)
|
|
$
|
(0.00
|
)
|
|
(1)
|
Excludes up to 1,133,333 shares of
Class B Common stock subject to forfeiture if the over-allotment option is not exercised in full or in part by the underwriter
(see Note 7). On June 2, 2021, the Sponsor purchased 7,992,750 Founder Shares and on October 14, 2021, the Company effected
a 1.1014-for-1.0 stock split resulting in Founder Shares outstanding of 8,803,333. On November 12, 2021, the Company effected a 0.9955-for-1.0
stock split resulting in 8,763,333 Founder Shares outstanding. All shares and related amounts have been retroactively restated.
|
The accompanying notes are
an integral part of these financial statements.
FTAC EMERALD ACQUISITION CORP.
STATEMENTS OF CHANGES IN STOCKHOLDER’S
EQUITY
|
|
|
Class B
Common Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares(1)
|
|
|
Amount
|
|
|
Additional
Paid-In
Capital
|
|
|
Accumulated
Deficit
|
|
|
Total
Stockholder’s Equity
|
|
|
Balance as of February 19, 2021
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Class B common stock issued to Sponsor
|
|
|
8,763,333
|
|
|
|
876
|
|
|
|
24,124
|
|
|
|
—
|
|
|
|
25,000
|
|
|
Net loss
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(208
|
)
|
|
|
(208
|
)
|
|
Balance as of June 30, 2021
|
|
|
8,763,333
|
|
|
|
876
|
|
|
|
24,124
|
|
|
|
(208
|
)
|
|
|
24,792
|
|
|
Net loss
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Balance as of September 30, 2021 (unaudited)
|
|
|
8,763,333
|
|
|
$
|
876
|
|
|
$
|
24,124
|
|
|
$
|
(208
|
)
|
|
$
|
24,792
|
|
|
(1)
|
Includes up to 1,133,333 shares of
Class B Common stock subject to forfeiture if the over-allotment option is not exercised in full or in part by the underwriter
(see Note 7). On June 2, 2021, the Sponsor purchased 7,992,750 Founder Shares and on October 14, 2021, the Company effected
a 1.1014-for-1.0 stock split resulting in Founder Shares outstanding of 8,803,333. On November 12, 2021, the Company effected a 0.9955-for-1.0
stock split resulting in 8,763,333 Founder Shares outstanding. All shares and related amounts have been retroactively restated.
|
The accompanying notes are
an integral part of these financial statements.
FTAC EMERALD ACQUISITION CORP.
STATEMENTS OF CASH FLOWS
FOR THE PERIOD FROM FEBRUARY 19, 2021 (INCEPTION)
THROUGH JUNE 30, 2021
|
|
|
For the period from February 19, 2021 (inception) through September 30, 2021
|
|
|
For the period from February 19, 2021 (inception) through
|
|
|
|
|
(Unaudited)
|
|
|
June 30, 2021
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net income to net cash used in operating activities
|
|
$
|
(208
|
)
|
|
$
|
(208
|
)
|
|
Changes in current assets and liabilities:
|
|
|
|
|
|
|
|
|
|
Accrued expenses
|
|
|
208
|
|
|
|
208
|
|
|
Net cash used in operating activities
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash from financing activities
|
|
|
|
|
|
|
|
|
|
Proceeds from sale of Class B common stock to initial stockholder
|
|
|
25,000
|
|
|
|
25,000
|
|
|
Net cash provided by financing activities
|
|
|
25,000
|
|
|
|
25,000
|
|
|
Net change in cash
|
|
|
25,000
|
|
|
|
25,000
|
|
|
Cash, beginning of the period
|
|
|
—
|
|
|
|
—
|
|
|
Cash, end of the period
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental non-cash disclosures
|
|
|
|
|
|
|
|
|
|
Deferred offering costs paid by the Sponsor under the promissory note
|
|
$
|
68,133
|
|
|
$
|
—
|
|
|
Accrued deferred offering costs
|
|
$
|
37,027
|
|
|
$
|
—
|
|
The accompanying notes are an integral part of
these financial statements.
FTAC EMERALD ACQUISITION CORP.
NOTES TO FINANCIAL STATEMENTS
Note 1— Organization and Business Operations
FTAC Emerald Acquisition Corp. (the “Company”)
is a newly organized, blank check company incorporated as a Delaware corporation on February 19, 2021, for the purpose of effecting
a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar Business Combination with one or more
businesses (the “Business Combination”). The Company has not selected any Business Combination target and the Company has
not, nor has anyone on its behalf, initiated any substantive discussions, directly or indirectly, with any Business Combination target.
The Company may pursue an initial Business Combination target in any business or industry.
As of September 30, 2021, the Company had
not commenced any operations. All activity for the period from February 19, 2021 (inception) through September 30, 2021 relates
to the Company’s formation and the Proposed Public Offering (as defined below). The Company will not generate any operating revenues
until after the completion of its initial Business Combination, at the earliest. The Company will generate non-operating income in
the form of interest income from the proceeds derived from the Proposed Public Offering (as defined below). The Company has selected December 31
as its fiscal year end.
The Company’s Sponsors are Emerald ESG
Sponsor, LLC, a Delaware limited liability company, and Emerald ESG Advisors, LLC, a Delaware limited liability company, (collectively,
the “Sponsor”). The Company’s ability to commence operations is contingent upon obtaining adequate financial resources
through a Proposed Public Offering of 22,000,000 units (the “Units” and, with respect to the Common stock included in the
Units being offered, the “public shares”) at $10.00 per Unit (or 25,300,000 Units if the underwriter’s over-allotment
option is exercised in full), which is discussed in Note 3 (the “Proposed Public Offering”) and the sale of 890,000 placement
units (or 990,000 placement units if the over-allotment option is exercised in full) (the “Private Placement Units”) at a
price of $10.00 per Private Placement Unit in a private placement to the Sponsors that will close simultaneously with the Proposed Public
Offering, which is discussed in Note 4 (“Private Placement”). The Company’s management has broad discretion with respect
to the specific application of the net proceeds of the Proposed Public Offering and sale of the Private Placement Units, although substantially
all of the net proceeds are intended to be applied generally toward consummating a Business Combination.
The
Company must complete one or more Business Combinations having an aggregate fair market value of at least 80% of the value of
the assets held in the Trust Account (as defined below) (excluding the deferred underwriting commissions and taxes payable on the interest
earned on the Trust Account) at the time of the Company’s signing a definitive agreement in connection with the initial Business
Combination. However, the Company will only complete an initial Business Combination if the post-transaction company owns or acquires
50% or more of the outstanding voting securities of the target or otherwise acquires a controlling interest in the target sufficient
for it not to be required to register as an investment company under the Investment Company Act of 1940, as amended (the “Investment
Company Act”). There is no assurance that the Company will be able to successfully effect a Business Combination.
Upon the closing of the Proposed Public Offering,
management has agreed that $10.10 per Unit sold in the Proposed Public Offering, including the proceeds of the sale of the Private Placement
Units, will be held in a Trust Account (“Trust Account”) and will be invested only in U.S. government securities with a maturity
of 185 days or less or in money market funds meeting certain conditions under Rule 2a-7 under the Investment Company Act which invest
only in direct U.S. government treasury obligations. Except for any interest income released to the Company to pay franchise and income
taxes and up to $100,000 of interest to pay dissolution expenses, none of the funds held in trust will be released from the Trust Account
until the earlier of (i) the consummation of the initial Business Combination; (ii) the redemption of the public shares if
the Company is unable to consummate a Business Combination within 18 months from the completion of the Proposed Public Offering subject
to applicable law, or 21 months from the closing of this offering if we have executed a letter of intent, agreement in principle
or definitive agreement for our initial business combination within 18 months from the closing of this offering but have not completed
our initial business combination within such 18-month period; or (iii) the redemption of any public shares properly tendered
in connection with a stockholder vote to approve an amendment to the Company’s amended and restated certificate of incorporation
(A) to modify the substance or timing of the Company’s obligation to provide for the redemption of the public shares in connection
with an initial Business Combination or to redeem 100% of the public shares if the Company has not consummated the initial Business Combination
within 18 months from the closing of the Proposed Public Offering, or 21 months from the closing of this offering if we have executed
a letter of intent, agreement in principle or definitive agreement for our initial business combination within 18 months from the
closing of this offering but have not completed our initial business combination within such 18-month period, or (B) with respect
to any other provision relating to stockholders’ rights or pre-initial Business Combination activity. The proceeds deposited in
the Trust Account could become subject to the claims of the Company’s creditors, if any, which could have priority over the claims
of the public stockholders.
The
Company will provide its public stockholders with the opportunity to redeem all or a portion of their public shares upon the completion
of the initial Business Combination either in connection with a stockholder meeting called to approve the Business Combination or by
means of a tender offer. The decision as to whether the Company will seek stockholder approval of a proposed Business Combination or
conduct a tender offer will be made by the Company, solely in the Company’s discretion, and will be based on a variety of factors
such as the timing of the transaction and whether the terms of the transaction would require the Company to seek stockholder approval
under the law or stock exchange listing requirement. The Company will provide its public stockholders with the opportunity to redeem
their public shares upon the consummation of the initial Business Combination at a per-share price, payable in cash, equal to the aggregate
amount then on deposit in the Trust Account as of two business days prior to the consummation of the initial Business Combination, including
any amounts representing deferred underwriting commissions and interest earned on the Trust Account not previously released to the Company,
divided by the number of then outstanding public shares, subject to the limitations described herein. The amount in the Trust Account
initially will be $10.10 per public share. The shares of common stock subject to redemption will be recorded at a redemption value and
classified as temporary equity upon the completion of the Proposed Public Offering, in accordance with Financial Accounting Standards
Board's ("FASB") Accounting Standards Codification (“ASC”) Topic 480 “Distinguishing Liabilities from Equity.”
In such case, the Company will proceed with a Business Combination if the Company has net tangible assets of at least $5,000,001 upon
such consummation of a Business Combination and, if the Company seeks stockholder approval, a majority of the issued and outstanding
shares voted are voted in favor of the Business Combination. The Company will have only 18 months from the closing of the Proposed Public
Offering, or 21 months from the closing of this offering if we have executed a letter of intent, agreement in principle or definitive
agreement for our initial business combination within 18 months from the closing of this offering but have not completed our initial
business combination within such 18-month period, (the “Combination Period”) to complete the initial Business Combination.
If the Company is unable to complete the initial Business Combination within the Combination Period, the Company will: (i) cease
all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than ten business days
thereafter, redeem all public shares then outstanding at a per-share price, payable in cash, equal to the aggregate amount then on deposit
in the Trust Account and not previously released to the Company to pay its taxes (less up to $100,000 of interest to pay dissolution
expenses), divided by the number of then outstanding public shares, which redemption will completely extinguish public stockholders’
rights as stockholders (including the right to receive further liquidation distributions, if any), subject to applicable law, and (iii) as
promptly as reasonably possible following such redemption, subject to the approval of the Company’s remaining stockholders and
the Company’s board of directors, dissolve and liquidate, subject in each case to the Company’s obligations under Delaware
law to provide for claims of creditors and the requirements of other applicable law. There will be no redemption rights or liquidating
distributions with respect to the warrants, which will expire worthless if the Company fails to complete its initial Business Combination
within the Combination Period. The initial stockholders, Sponsor, officers and directors have entered into a letter agreement with the
Company, pursuant to which they have agreed: (1) to waive their redemption rights with respect to any Founder Shares, placement
shares and public shares held by them, as applicable, in connection with the completion of the initial Business Combination; (2) to
waive their redemption rights with respect to any Founder Shares, placement shares and public shares held by them in connection with
a stockholder vote to approve an amendment to the Company’s amended and restated certificate of incorporation (A) to modify
the substance or timing of the Company’s obligation to provide for the redemption of the public shares in connection with an initial
Business Combination or to redeem 100% of the public shares if the Company has not consummated the initial Business Combination within
the Combination Period or (B) with respect to any other provision relating to stockholders’ rights or pre-initial Business
Combination activity; and (3) to waive their rights to liquidating distributions from the Trust Account with respect to any Founder
Shares or placement shares they hold if the Company fails to complete its initial Business Combination within the Combination Period
(although they will be entitled to liquidating distributions from the Trust Account with respect to any public shares they hold if the
Company fails to complete its initial Business Combination within the Combination Period), and (4) vote any Founder Shares held
by them and any public shares purchased during or after the Proposed Public Offering (including in open market and privately-negotiated
transactions) in favor of the initial Business Combination. The Sponsor has agreed that it will be liable to the Company if and to the
extent any claims by a third party for services rendered or products sold to the Company, or a prospective target business with which
the Company discussed entering into a transaction agreement, reduce the amounts in the Trust Account to below $10.10 per share except
as to any claims by a third party who executed a waiver of rights to seek access to the Trust Account and except as to any claims under
the Company’s indemnity of the underwriter of the Proposed Public Offering against certain liabilities, including liabilities under
the Securities Act. Moreover, if an executed waiver is deemed to be unenforceable against a third party, the Sponsor will not be responsible
to the extent of any liability for such third party claims. The Company has not independently verified whether the Sponsor has sufficient
funds to satisfy its indemnity obligations, the Company has not asked it to reserve for such indemnification obligations and the Company
believes that its only assets are securities of the Company. Therefore, the Company cannot assure you that the Sponsor will be able to
satisfy these obligations.
Going Concern Consideration
The Company does not have sufficient
liquidity to meet its anticipated obligations over the next year from the date of issuance of these financial statements. In
connection with the Company’s assessment of going concern considerations in accordance with FASB’s Accounting Standards
Update (“ASU”) 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a
Going Concern,” management has determined that the Company has access to funds from the Sponsor, and the Sponsor has the
financial wherewithal to fund the Company, that are sufficient to fund the working capital needs of the Company until the earlier of
the consummation of the Proposed Public Offering or one year from the date of issuance of these financial statements.
Risks and Uncertainties
Management is currently evaluating the impact
of the COVID-19 pandemic and has concluded that while it is reasonably possible that the virus could have a negative effect on the Company's
financial position, results of its operations, closing of the Proposed Public Offering, and/or search for a target company, the specific impact is not readily determinable as
of the date of these financial statements. The financial statements do not include any adjustments that might result from the outcome
of this uncertainty.
Note 2— Significant Accounting Policies
Basis of Presentation
The accompanying financial statements are presented
in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) and pursuant
to the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”).
Emerging Growth Company Status
The Company is an “emerging growth company,”
as defined in Section2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012, (the “JOBS
Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public
companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation
requirements of Section404 of the Sarbanes-OxleyAct, reduced disclosure obligations regarding executive compensation in its periodic
reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and
stockholder approval of any golden parachute payments not previously approved.
Further, Section102(b)(1) of the JOBS Act
exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies
(that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered
under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company
can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies
but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means
that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an
emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This
may make comparison of the Company’s financial statements with another public company which is neither an emerging growth company
nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential
differences in accounting standards used.
Use of Estimates
The preparation of financial statements in conformity
with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting
period. Making estimates requires management to exercise significant judgement. It is at least reasonably possible that the estimate
of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management
considered in formulating its estimate, could change in the near term due to one or more future-confirming events. Accordingly, the actual
results could differ significantly from those estimates.
Cash and Cash Equivalents
The
Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents.
The Company had $25,000 in cash and no cash equivalents as of September 30, 2021 and June 30, 2021.
Deferred Offering Costs
The Company complies with the requirements of
Financial Accounting Standards Board (FASB) Accounting Standard Codification (ASC) 340-10-S99-1. Deferred offering costs consist of professional
fees and other costs incurred through the balance sheet date that are directly related to the Proposed Public Offering and that will be
charged against the carrying value of Class A common stock upon the completion of the Proposed Public Offering. Should the Proposed Public
Offering prove to be unsuccessful, these deferred costs, as well as additional expenses to be incurred, will be charged to operations.
Fair Value of Financial Instruments
The fair value of the Company’s assets
and liabilities which qualify as financial instruments under the FASB ASC 820, “Fair Value Measurements and Disclosures,”
equal or approximate the carrying amounts represented in the balance sheet, primarily due to its short-term nature.
Net Loss Per Common Share
The Company complies with the accounting and
disclosure requirements of FASB ASC Topic 260, “Earnings Per Share.” Net loss per common share is computed by dividing
net loss by the weighted average number of shares of common stock outstanding during the period, excluding common stock subject to
forfeiture. Weighted average Class B shares were reduced for the effect of an aggregate of 1,133,333 Class B shares of
common stock that are subject to forfeiture if the over-allotment option is not exercised by the underwriter (see Note 7). At
September 30, 2021 and June 30, 2021, the Company did not have any dilutive securities and other contracts that could,
potentially, be exercised or converted into common stock and then share in the earnings of the Company. As a result, diluted loss
per Class B common share is the same as basic loss per Class B common share for the period presented.
Fair Value Measurements
Fair value is defined as the price that
would be received for sale of an asset or paid for transfer of a liability, in an orderly transaction between market participants at
the measurement date. US GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair
value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities
(Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These tiers consist of:
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Level
1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments
in active markets;
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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
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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.
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In some circumstances, the inputs used to measure
fair value might be categorized within different levels of the fair value hierarchy. In those instances, the fair value measurement is
categorized in its entirety in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement.
Warrant Classification
The Company will account for warrants issued in connection with the Proposed Public Offering and private placement in accordance with
the guidance contained in ASC 815-40 under which the warrants meet the criteria for equity treatment and must be recorded as equity.
Income Taxes
The
Company accounts for income taxes under FASB ASC 740, “Income Taxes” (“ASC 740”). ASC 740 requires the
recognition of deferred tax assets and liabilities for both the expected impact of differences between the financial statement and tax
basis of assets and liabilities and for the expected future tax benefit to be derived from tax loss and tax credit carry forwards. ASC
740 additionally requires a valuation allowance to be established when it is more likely than not that all or a portion of deferred tax
assets will not be realized. Any deferred taxes of the Company were considered to be de minimis as of September 30, 2021 and June 30, 2021.
ASC 740 also clarifies the accounting for uncertainty
in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement process
for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits
to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. ASC 740 also
provides guidance on derecognition, classification, interest and penalties, accounting in interim period, disclosure and transition.
The Company recognizes accrued interest and penalties
related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest
and penalties as of September 30, 2021 and June 30, 2021. The Company is currently not aware of any issues under review that could
result in significant payments, accruals or material deviation from its position.
The Company has identified the United States
as its only “major” tax jurisdiction.
The Company is subject to income tax examinations
by major taxing authorities since inception. These examinations may include questioning the timing and amount of deductions, the nexus
of income among various tax jurisdictions and compliance with federal and state tax laws. The Company’s management does not expect
that the total amount of unrecognized tax benefits will materially change over the next twelve months.
The
provision for income taxes was deemed to be de minimus for the period from February 19, 2021(inception) through September 30,
2021 and for the period from February 19, 2021 (inception) through June 30, 2021.
Concentration of credit risk
Financial instruments that potentially
subject the Company to concentration of credit risk consist of a cash account in a financial institution which, at times may exceed
the Federal depository insurance coverage of $250,000. At September 30, 2021 and June 30, 2021, the Company had not experienced
losses on this account and management believes the Company is not exposed to significant risks on such account.
Recent Accounting Standards
In August 2020, the FASB issued ASU 2020-06,
Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s
Own Equity (Subtopic 815-40) (“ASU 2020-06”) to simplify accounting for certain financial instruments. ASU 2020-06 eliminates
the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies
the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The new standard
also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s
own equity. ASU 2020-06 amends the diluted earnings per share guidance, including the requirement to use the if-converted
method for all convertible instruments. ASU 2020-06 is effective January 1, 2024 and should be applied on a full or
modified retrospective basis, with early adoption permitted. The Company is currently assessing the impact, if any, that ASU 2020-06 would
have on its financial position, results of operations or cash flows.
Management does not believe that any other recently
issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material effect on the Company’s financial
statements.
Note 3— Proposed Public Offering
Pursuant to the Proposed Public Offering, the
Company will offer for sale 22,000,000 Units (or 25,300,000 Units if the underwriter’s overallotment option is exercised in full)
at a purchase price of $10.00 per Unit. Each Unit will consist of one share of Class A common stock and one-half of one redeemable
warrant (“public warrant”).
Note 4— Private Placement
The Sponsors have subscribed to purchase an
aggregate of 890,000 placement units (or 990,000 placement units if the over-allotment option is exercised in full) Private Placement
Units for a purchase price of approximately $8,900,000 (or $9,900,000 if the over-allotment option is exercised in full), or $10.00 per
unit, in a private placement that will close simultaneously with the closing of the Proposed Public Offering.
The placement warrants will be identical to the
warrants sold in the Proposed Public Offering, except that if held by the Sponsor or its permitted transferees, they (a) may be exercised
for cash or on a cashless basis, (b) are not subject to being called for redemption, and (c) they (including the common stock
issuable upon exercise of these warrants) may not, subject to certain limited exceptions, be transferred, assigned or sold by the holders
until 30 days after the consummation of the initial business combination. There will be no redemption rights or liquidating distributions
with respect to the Founder Shares (defined below), placement shares or warrants, which will expire worthless if the Company does not
complete an initial business combination.
Note 5— Related Party Transactions
Founder Shares
On June 2, 2021, the Sponsor purchased 7,992,750
shares for an aggregate purchase price of $25,000, and on October 14, 2021, the Company effected a 1.1014-for-1.0 stock split, so
that the Sponsor owned an aggregate of 8,803,333 shares of Class B Common stock (the “Founder Shares”). On November
12, 2021, the Company effected a 0.9955-for-1.0 stock split, so that the Sponsor owns an aggregate of 8,763,333 Founder Shares. All shares
and related amounts have been retroactively adjusted to reflect the split (see Note 8). The number of Founder Shares outstanding was
determined based on the expectation that the total size of the Proposed Public Offering would be a maximum of 25,300,000 Units if the
underwriter’s over-allotment option is exercised in full, and therefore that such founder shares would represent 25% of the outstanding
shares after the Proposed Public Offering. Up to 1,133,333 of the Founder Shares will be forfeited depending on the extent to which the
underwriter’s over-allotment is not exercised.
The initial stockholders have agreed not to transfer,
assign or sell any of their Founder Shares (i) with respect to 25% of such shares, until consummation of the initial Business Combination,
(ii) with respect to 25% of such shares, until the closing price of the Class A common stock exceeds $12.00 for any 20 trading
days within a 30-trading day period following the consummation of the initial Business Combination, (iii) with respect to 25% of
such shares, until the closing price of the Class A common stock exceeds $13.50 for any 20 trading days within a 30-trading day
period following the consummation of the initial Business Combination, and (iv) with respect to 25% of such shares, until the closing
price of the Class A common stock exceeds $15.00 for any 20 trading days within a 30-trading day period following the consummation
of the initial Business Combination or earlier, in any case, if, following a Business Combination, the Company completes a liquidation,
merger, capital stock exchange or other similar transaction that results in all of the stockholders having the right to exchange their
shares of common stock for cash, securities or other property. Any permitted transferees would be subject to the same restrictions and
other agreements of the initial stockholders with respect to any Founder Shares (the “Lock-up”). Notwithstanding the foregoing,
in connection with an initial Business Combination, the initial holders may transfer, assign or sell their Founder Shares with the Company’s
consent to any person or entity that agrees in writing to be bound by the transfer restrictions set forth in the prior sentence.
Promissory Note — Related Party
The Sponsors have agreed to loan the Company
up to $300,000 to be used for a portion of the expenses of the Proposed Public Offering. These loans are non-interest bearing,
unsecured and due at the earlier of March 30, 2022 or the closing of the Proposed Public Offering. These loans will be repaid
upon the closing of the Proposed Public Offering. As of September 30, 2021 and June 30, 2021, the Company had $68,133 and
no borrowing outstanding, respectively, under the promissory note.
Working Capital Loans
In
order to finance transaction costs in connection with an intended initial Business Combination, the Sponsor or an affiliate of the
Sponsor or certain of the Company’s officers and directors may, but are not obligated to, loan the Company funds as may be
required (the “Working Capital Loans”). If the Company completes its initial Business Combination, it would repay the
Working Capital Loans out of the proceeds of the Trust Account released to the Company. Otherwise, the Working Capital Loans would
be repaid only out of funds held outside the Trust Account. In the event that the initial Business Combination does not close, the
Company may use a portion of the working capital held outside the Trust Account to repay the Working Capital Loans but no proceeds
from the Trust Account would be used to repay the Working Capital Loans. Up to $2,000,000 of the Working Capital Loans may be
convertible into units, at a price of $10.00 per unit at the option of the lender. The units would be identical to the placement
units. The terms of the Working Capital Loans by the Company’s officers and directors, if any, have not been determined and no
written agreements exist with respect to the Working Capital Loans. Prior to the completion of the initial Business Combination, the
Company does not expect to seek loans from parties other than the Sponsor or an affiliate of the Sponsor as the Company does not
believe third parties will be willing to loan such funds and provide a waiver against any and all rights to seek access to funds in
the Trust Account. At September 30, 2021 and June 30, 2021, no such Working Capital Loans were outstanding.
Administrative Service Fee
The Company will enter into an administrative
services agreement on the effective date of the registration statement for the Proposed Public Offering pursuant to which the Company
will pay the Sponsor or its designee a total of $30,000 per month for office space, administrative and shared personnel support services.
Upon completion of the Company’s initial Business Combination or its liquidation, the Company will cease paying these monthly fees.
Note 6— Commitments and Contingencies
Registration Rights
The holders of the Founder Shares, placement
units (including securities contained therein) and warrants that may be issued upon conversion of working capital loans (and any shares
of Class A common stock issuable upon the exercise of the placement warrants or warrants issued upon conversion of the working capital
loans) will be entitled to registration rights pursuant to a registration rights agreement to be signed prior to or on the effective
date of the Proposed Public Offering requiring the Company to register such securities for resale (in the case of the Founder Shares,
only after conversion to the Class A common stock). The holders of these securities are entitled to make up to three demands, excluding
short form demands, that the Company registers such securities. In addition, the holders have certain “piggy-back” registration
rights with respect to registration statements filed subsequent to the Company’s completion of the initial Business Combination
and rights to require the Company to register for resale such securities pursuant to Rule 415 under the Securities Act.
Warrant Amendments
The warrant agreement provides that the terms of the warrants may be amended without the consent of any stockholder or warrant holder
to cure any ambiguity or correct any defective provision or to make any amendments that are necessary in the good faith determination
of the board of directors of the Company (taking into account then existing market precedents) to allow for the warrants to continue to
be classified as equity in the Company’s financial statements, but requires the approval by the holders of at least 50% of the then
outstanding public warrants to make any change that adversely affects the interests of the registered holders of public warrants. Accordingly,
the Company may amend the terms of the public warrants (i) in a manner adverse to a holder of public warrants if holders of at least 50%
of the then outstanding public warrants approve of such amendment or (ii) to the extent necessary for the warrants in the good faith determination
of the board of directors of the Company (taking into account then existing market precedents) to allow for the warrants to continue to
be classified as equity in the Company’s financial statements without the consent of any stockholder or warrant holder. Although
the Company’s ability to amend the terms of the public warrants with the consent of at least 50% of the then outstanding public
warrants is unlimited, examples of such amendments could be amendments to, among other things, increase the exercise price of the warrants, convert the warrants into cash or shares, shorten the exercise period or decrease the number of shares
of Class A common stock purchasable upon exercise of a warrant.
Underwriting Agreement
The Company will grant the underwriter a 45-day option to purchase
up to 3,300,000 additional Units to cover any over-allotments, if any, at the Proposed Public Offering price less the underwriting discounts
and commissions.
The
underwriter will be entitled to a cash underwriting discount of two percent (2%) of the gross proceeds of the Proposed Public Offering,
or $4,400,000 (or $5,060,000 if the underwriters’ over-allotment option is exercised in full). Additionally, the underwriter
will be entitled to a deferred underwriting discount of 3.5% of the gross proceeds or $7,700,000 (or $8,855,000 if the underwriter’s
over-allotment is exercised in full) of the Proposed Public Offering upon the completion of the Company’s initial Business Combination.
Financial Advisory Fee
The Company intends to engage Cohen & Company Capital Markets, a division of J.V.B. Financial Group, LLC (“CCM”), to provide
financial advisory services in connection with the Proposed Public Offering. The Company will pay CCM a fee in an amount equal to 0.3%
of the aggregate proceeds of the Proposed Public Offering (excluding the proceeds of the exercise of the overallotment option, if any)
net of underwriter’s expenses, which will be paid to CCM upon the closing of the Proposed Public Offering. The Company also intends
to engage CCM as an advisor in connection with Business Combination for which it will earn an advisory fee of 0.525% of the proceeds of
the Proposed Public Offering (excluding the proceeds of the exercise of the overallotment option, if any) payable at closing of the Business
Combination. CCM will also be entitled to an advisory fee equal to 0.825% of the aggregate proceeds of the exercise of the overallotment
option, if any, payable at the closing of the Business Combination. The underwriter has agreed to reimburse the Company for the fee to
CCM as it becomes payable out of the underwriting commission.
Note 7— Stockholder’s Equity
Preferred Stock
The
Company is authorized to issue 1,000,000 shares of preferred stock with a par value of $0.0001 per share. At September 30, 2021 and June 30,
2021, there were no shares of preferred stock issued or outstanding.
Class A Common Stock
The
Company is authorized to issue 42,000,000 shares of Class A common stock with a par value of $0.0001 per share. Holders of
Class A common stock are entitled to one vote for each share. At September 30, 2021 and June 30, 2021, there were
no shares of Class A common stock issued or outstanding.
Class B Common Stock
The Company is authorized to issue 10,000,000
shares of Class B common stock with a par value of $0.0001 per share. Holders of the Class B common stock are entitled to one
vote for each share. At September 30, 2021 and June 30, 2021, there were 8,763,333 shares of Class B common stock issued and outstanding,
of which 1,133,333 shares are subject to forfeiture to the extent that the underwriter’s over-allotment option is not exercised
in full so that the Founder Shares will represent, on an as-converted basis, 25% of the Company’s issued and outstanding shares
after the Proposed Public Offering (assuming the Sponsor does not purchase any public shares in the Proposed Public Offering).
The shares of Class B common stock will
automatically convert into shares of Class A common stock at the time of the initial Business Combination on a one-for-one basis,
subject to adjustment as provided herein. In the case that additional shares of Class A common stock or equity-linked securities
are issued or deemed issued in excess of the amounts sold in the Proposed Public Offering and related to the closing of the initial Business
Combination, the ratio at which shares of Class B common stock shall convert into shares of Class A common stock will be adjusted
(unless the holders of a majority of the outstanding shares of Class B common stock agree to waive such adjustment with respect
to any such issuance or deemed issuance) so that the number of shares of Class A common stock issuable upon conversion of all shares
of Class B common stock will equal, in the aggregate, on an as-converted basis, 25% of the sum of the total number of all shares
of common stock issued and outstanding upon completion of the Proposed Public Offering, including placement shares, plus all shares of
Class A common stock and equity-linked securities issued or deemed issued in connection with the initial Business Combination, excluding
any shares or equity-linked securities issued, or to be issued, to any seller in the initial Business Combination and any private placement-equivalent
securities issued to the Sponsor or its affiliates upon conversion of loans made to the Company. The term “equity-linked securities”
refers to any debt or equity securities that are convertible, exercisable or exchangeable for shares of Class A common stock issued
in a financing transaction in connection with the initial Business Combination, including but not limited to a private placement of equity
or debt. Securities could be “deemed issued” for purposes of the conversion rate adjustment if such shares are issuable upon
the conversion or exercise of convertible securities, warrants or similar securities.
Warrants
No warrants are currently outstanding. Each
whole warrant entitles the holder to purchase one share of the Company’s Class A common stock at a price of $11.50 per
share, subject to adjustment as described herein. In addition, if (x) the Company issues additional shares of Class A
common stock or equity-linked securities for capital raising purposes in connection with the closing of the initial Business
Combination at an issue price or effective issue price of less than $9.20 per share (with such issue price or effective issue price
to be determined in good faith by the Company and in the case of any such issuance to the Sponsor or its affiliates, without taking
into account any Founder Shares held by the initial stockholders or such affiliates, as applicable, prior to such issuance) (the
“Newly Issued Price”), (y) the aggregate gross proceeds from such issuances represent more than 50% of the total
equity proceeds, and interest thereon, available for the funding of the initial Business Combination on the date of the completion
of the initial Business Combination (net of redemptions), and (z) the volume-weighted average trading price of the shares of
Class A common stock during the 20 trading day period starting on the trading day prior to the day on which the Company
completes its initial Business Combination (such price, the “Market Value”) is below $9.20 per share, the exercise price
of the warrants will be adjusted (to the nearest cent) to be equal to 115% of the higher of the Market Value and the Newly Issued
Price, and the $18.00 per share redemption trigger price will be adjusted (to the nearest cent) to be equal to 180% of the higher of the Market Value and the Newly Issued Price.
The warrants will expire at 5:00 p.m., New York
City time on the warrant expiration date, which is five years after the completion of the initial Business Combination or earlier upon
redemption or liquidation. On the exercise of any warrant, the warrant exercise price will be paid directly to the Company and not placed
in the Trust Account.
The Company will not be obligated to deliver
any shares of Class A common stock pursuant to the exercise for cash of a warrant and will have no obligation to settle such warrant
exercise unless a registration statement under the Securities Act with respect to the shares of Class A common stock underlying
the warrants is then effective and a prospectus relating thereto is current, subject to the Company’s satisfying the Company’s
obligations described below with respect to registration. No warrant will be exercisable and the Company will not be obligated to issue
shares of Class A common stock upon exercise of a warrant unless Class A common stock issuable upon such warrant exercise has
been registered, qualified or deemed to be exempt from the registration or qualifications requirements of the securities laws of the
state of residence of the registered holder of the warrants. Notwithstanding the foregoing, if a registration statement covering the
shares of Class A common stock issuable upon exercise of the public warrants has not been declared effective by the end of 60 business
days following the closing of the initial Business Combination, warrant holders may, until such time as there is an effective registration
statement and during any period when the Company shall have failed to maintain an effective registration statement, exercise warrants
on a cashless basis pursuant to the exemption provided by Section 3(a)(9) of the Securities Act.
The Company has agreed that as soon as practicable,
but in no event later than 15 business days after the closing of the initial Business Combination, the Company will use its commercially
reasonable efforts to file with the SEC a post-effective amendment to the registration statement of which this prospectus forms a part
or a new registration statement covering the issuance of the shares of Class A common stock issuable upon exercise of the warrants
and to maintain a current prospectus relating to those shares of Class A common stock until the warrants expire or are redeemed,
as specified in the warrant agreement. If a registration statement covering the shares of Class A common stock issuable upon exercise
of the warrants is not effective by the 60th business day after the closing of the initial Business Combination, warrant holders may,
until such time as there is an effective registration statement and during any period when the Company will have failed to maintain an
effective registration statement, exercise warrants on a “cashless basis” in accordance with Section 3(a)(9) of
the Securities Act or another exemption. Notwithstanding the above, if the Class A common stock is at the time of any exercise of
a warrant not listed on a national securities exchange such that it satisfies the definition of a “covered security” under
Section 18(b)(1) of the Securities Act, the Company may, at its option, require holders of public warrants who exercise their
warrants to do so on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act and, in the event
the Company so elect, it will not be required to file or maintain in effect a registration statement, and in the event the Company does
not so elect, it will use the commercially reasonable efforts to register or qualify the shares under applicable blue sky laws to the
extent an exemption is not available. In such event, each holder would pay the exercise price by surrendering the warrants for that number
of shares of Class A common stock equal to the lesser of (A) the quotient obtained by dividing (x) the product of the
number of shares of Class A common stock underlying the warrants, multiplied by the excess of the “fair market value”
(defined below) less the exercise price of the warrants by (y) the fair market value and (B) 0.361. The “fair market
value” as used in this paragraph shall mean the volume weighted average price of the Class A common stock for the 10 trading
days ending on the trading day prior to the date on which the notice of exercise is received by the warrant agent.
Redemption of warrants.
|
|
·
|
Once the warrants become exercisable, the Company may redeem the outstanding warrants:
|
|
|
·
|
in whole and not in part;
|
|
|
·
|
at a price of $0.01 per warrant;
|
|
|
·
|
upon not less than 30 days’ prior written notice of redemption (the “30-day redemption period”) to each warrant holder; and
|
|
|
·
|
if, and only if, the reported last sale price of the Class A common stock (or the closing bid price of the common stock in the event shares of the common stock are not traded on any specific day) equals or exceeds $18.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within a 30 trading day period ending three business days before the Company sends the notice of redemption to the warrant holders.
|
The “fair market value” of the Class A
common stock shall mean the volume weighted average price of the Class A common stock during the 10 trading days immediately following
the date on which the notice of redemption is sent to the holders of warrants. This redemption feature differs from the typical warrant
redemption features used in other blank check offerings. The Company will provide its warrant holders with the final fair market value
no later than one business day after the 10 trading day period described above ends. In no event will the warrants be exercisable in
connection with this redemption feature for more than 0.361 shares of Class A common stock per warrant (subject to adjustment).
Note 8— Subsequent Events
The Company evaluated subsequent events and
transactions that occurred after the balance sheet date up to through November 19, 2021, the date that the financial statements were
available to be issued. Based on the Company’s review, the Company did not identify any subsequent events that would have required
adjustment or disclosure in the financial statements except as noted below.
On October 14, 2021, the Company
effected a 1.1014-for-1.0 stock split. This split resulted in the Sponsor holding 8,803,333 shares of Class B common stock
issued and outstanding. On November 12, 2021, the Company effected a 0.9955-for-1.0 stock split so that the
Sponsor owns an aggregate of 8,763,333 shares of Class B common stock, of which 1,133,333 shares are
subject to forfeiture to the extent that the underwriter’s over-allotment option is not exercised in full so that the Founder
Shares will represent, on an as-converted basis, 25% of the Company’s issued and outstanding shares after the Proposed Public
Offering (assuming the Sponsor does not purchase any public shares in the Proposed Public Offering). All shares and related amounts
have been retroactively adjusted to reflect the split.
$220,000,000
FTAC Emerald Acquisition Corp.
22,000,000 Units
PRELIMINARY PROSPECTUS
__________ , 2021
Sole Book-Running Manager
Goldman Sachs & Co. LLC
Until __________,
2021, all dealers that buy, sell or trade these securities, whether or not participating in this offering, may be required to deliver
a prospectus. This is in addition to the dealers’ obligation to deliver a prospectus when acting as underwriters and with respect
to their unsold allotments or subscriptions.
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
Item 13. Other Expenses of Issuance and Distribution.
The estimated expenses payable
by us in connection with the offering described in this registration statement (other than the underwriting discount and commissions)
will be as follows:
|
SEC filing fee
|
|
$
|
36,939
|
|
|
FINRA filing fee
|
|
|
60,465
|
|
|
Accounting fees and expenses
|
|
|
45,000
|
|
|
Printing and engraving expenses
|
|
|
40,000
|
|
|
Legal fees and expenses
|
|
|
250,000
|
|
|
NASDAQ Global Market fees
|
|
|
75,000
|
|
|
Travel and roadshow
|
|
|
20,000
|
|
|
Miscellaneous expenses(1)
|
|
|
12,596
|
|
|
Total
|
|
$
|
540,000
|
|
|
(1)
|
This amount represents
additional expenses that may be incurred by us in connection with the offering over and above
those specifically listed above, including distribution and mailing costs, transfer agent
fees, warrant agent fees and trustee fees.
|
Item 14. Indemnification of Directors and Officers.
Our amended and restated
bylaws will provide that all of our directors, officers, employees and agents will be entitled to be indemnified by us to the fullest
extent permitted by Section 145 of the Delaware General Corporation Law.
Section 145 of the Delaware General Corporation
Law concerning indemnification of officers, directors, employees and agents is set forth below.
Section 145. Indemnification of officers,
directors, employees and agents; insurance.
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|
(a)
|
A corporation shall have power to indemnify
any person who was or is a party or is threatened to be made a party to any threatened, pending
or completed action, suit or proceeding, whether civil, criminal, administrative or investigative
(other than an action by or in the right of the corporation) by reason of the fact that the
person is or was a director, officer, employee or agent of the corporation, or is or was
serving at the request of the corporation as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust or other enterprise, against expenses (including
attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably
incurred by the person in connection with such action, suit or proceeding if the person acted
in good faith and in a manner the person reasonably believed to be in or not opposed to the
best interests of the corporation, and, with respect to any criminal action or proceeding,
had no reasonable cause to believe the person’s conduct was unlawful. The termination
of any action, suit or proceeding by judgment, order, settlement, conviction, or upon a plea
of nolo contendere or its equivalent, shall not, of itself, create a presumption that the
person did not act in good faith and in a manner which the person reasonably believed to
be in or not opposed to the best interests of the corporation, and, with respect to any criminal
action or proceeding, had reasonable cause to believe that the person’s conduct was
unlawful.
|
|
|
(b)
|
A corporation shall have power to indemnify any person who was or
is a party or is threatened to be made a party to any threatened, pending or completed action
or suit by or in the right of the corporation to procure a judgment in its favor by reason
of the fact that the person is or was a director, officer, employee or agent of the corporation,
or is or was serving at the request of the corporation as a director, officer, employee or
agent of another corporation, partnership, joint venture, trust or other enterprise against
expenses (including attorneys’ fees) actually and reasonably incurred by the person
in connection with the defense or settlement of such action or suit if the person acted in
good faith and in a manner the person reasonably believed to be in or not opposed to the
best interests of the corporation and except that no indemnification shall be made in respect
of any claim, issue or matter as to which such person shall have been adjudged to be liable
to the corporation unless and only to the extent that the Court of Chancery or the court
in which such action or suit was brought shall determine upon application that, despite the
adjudication of liability but in view of all the circumstances of the case, such person is
fairly and reasonably entitled to indemnity for such expenses which the Court of Chancery
or such other court shall deem proper.
|
|
|
(c)
|
(1) To the extent that a present or former director or officer
of a corporation has been successful on the merits or otherwise in defense of any action,
suit or proceeding referred to in subsections (a) and (b) of this section, or in
defense of any claim, issue or matter therein, such person shall be indemnified against expenses
(including attorneys’ fees) actually and reasonably incurred by such person in connection
therewith. For indemnification with respect to any act or omission occurring after December 31,
2020, references to “officer” for purposes of this paragraphs (c)(1) and
(2) of this section shall mean only a person who at the time of such act or omission
is deemed to have consented to service by the delivery of process to the registered agent
of the corporation pursuant to § 3114(b) of Title 10 (for purposes of this sentence
only, treating residents of this State as if they were nonresidents to apply § 3114(b) of
Title 10 to this sentence).
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|
|
|
(2) The corporation
may indemnify any other person who is not a present or former director or officer of the
corporation against expenses (including attorneys’ fees) actually and reasonably incurred
by such person to the extent he or she has been successful on the merits or otherwise in
defense of any action, suit or proceeding referred to in subsections (a) and (b) of
this section, or in defense of any claim, issue or matter therein.
|
|
|
(d)
|
Any indemnification under subsections (a) and (b) of this
section (unless ordered by a court) shall be made by the corporation only as authorized in
the specific case upon a determination that indemnification of the present or former director,
officer, employee or agent is proper in the circumstances because the person has met the
applicable standard of conduct set forth in subsections (a) and (b) of this section.
Such determination shall be made, with respect to a person who is a director or officer of
the corporation at the time of such determination:
|
(1) By a majority
vote of the directors who are not parties to such action, suit or proceeding, even though less than a quorum; or
(2) By a committee
of such directors designated by majority vote of such directors, even though less than a quorum; or
(3) If there
are no such directors, or if such directors so direct, by independent legal counsel in a written opinion; or
(4) By the stockholders.
|
|
(e)
|
Expenses (including attorneys’ fees) incurred by an officer
or director of the corporation in defending any civil, criminal, administrative or investigative
action, suit or proceeding may be paid by the corporation in advance of the final disposition
of such action, suit or proceeding upon receipt of an undertaking by or on behalf of such
director or officer to repay such amount if it shall ultimately be determined that such person
is not entitled to be indemnified by the corporation as authorized in this section. Such
expenses (including attorneys’ fees) incurred by former directors and officers or other
employees and agents of the corporation or by persons serving at the request of the corporation
as directors, officers, employees or agents of another corporation, partnership, joint venture,
trust or other enterprise may be so paid upon such terms and conditions, if any, as the corporation
deems appropriate.
|
|
|
(f)
|
The indemnification and advancement of expenses provided by, or granted
pursuant to, the other subsections of this section shall not be deemed exclusive of any other
rights to which those seeking indemnification or advancement of expenses may be entitled
under any bylaw, agreement, vote of stockholders or disinterested directors or otherwise,
both as to action in such person’s official capacity and as to action in another capacity
while holding such office. A right to indemnification or to advancement of expenses arising
under a provision of the certificate of incorporation or a bylaw shall not be eliminated
or impaired by an amendment to or repeal or elimination of the certificate of incorporation
or the bylaws after the occurrence of the act or omission that is the subject of the civil,
criminal, administrative or investigative action, suit or proceeding for which indemnification
or advancement of expenses is sought, unless the provision in effect at the time of such
act or omission explicitly authorizes such elimination or impairment after such action or
omission has occurred.
|
|
|
(g)
|
A corporation shall have power to purchase and maintain insurance
on behalf of any person who is or was a director, officer, employee or agent of the corporation,
or is or was serving at the request of the corporation as a director, officer, employee or
agent of another corporation, partnership, joint venture, trust or other enterprise against
any liability asserted against such person and incurred by such person in any such capacity,
or arising out of such person’s status as such, whether or not the corporation would
have the power to indemnify such person against such liability under this section.
|
|
|
(h)
|
For purposes of this section, references to “the corporation”
shall include, in addition to the resulting corporation, any constituent corporation (including
any constituent of a constituent) absorbed in a consolidation or merger which, if its separate
existence had continued, would have had power and authority to indemnify its directors, officers,
and employees or agents, so that any person who is or was a director, officer, employee or
agent of such constituent corporation, or is or was serving at the request of such constituent
corporation as a director, officer, employee or agent of another corporation, partnership,
joint venture, trust or other enterprise, shall stand in the same position under this section
with respect to the resulting or surviving corporation as such person would have with respect
to such constituent corporation if its separate existence had continued.
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|
|
(i)
|
For purposes of this section, references to “other enterprises”
shall include employee benefit plans; references to “fines” shall include any
excise taxes assessed on a person with respect to any employee benefit plan; and references
to “serving at the request of the corporation” shall include any service as a
director, officer, employee or agent of the corporation which imposes duties on, or involves
services by, such director, officer, employee or agent with respect to an employee benefit
plan, its participants or beneficiaries; and a person who acted in good faith and in a manner
such person reasonably believed to be in the interest of the participants and beneficiaries
of an employee benefit plan shall be deemed to have acted in a manner “not opposed
to the best interests of the corporation” as referred to in this section.
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|
|
(j)
|
The indemnification and advancement of expenses provided by, or granted
pursuant to, this section shall, unless otherwise provided when authorized or ratified, continue
as to a person who has ceased to be a director, officer, employee or agent and shall inure
to the benefit of the heirs, executors and administrators of such a person.
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|
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(k)
|
The Court of Chancery
is hereby vested with exclusive jurisdiction to hear and determine all actions for advancement
of expenses or indemnification brought under this section or under any bylaw, agreement,
vote of stockholders or disinterested directors, or otherwise. The Court of Chancery may
summarily determine a corporation’s obligation to advance expenses (including attorneys’
fees).
|
Insofar as indemnification for liabilities arising
under the Securities Act may be permitted to our directors, officers, and controlling persons pursuant to the foregoing provisions, or
otherwise, we have been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities
Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment
of expenses incurred or paid by a director, officer or controlling person in a successful defense of any action, suit or proceeding)
is asserted by such director, officer or controlling person in connection with the securities being registered, we will, unless in the
opinion of our counsel the matter has been settled by controlling precedent, submit to the court of appropriate jurisdiction the question
whether such indemnification by us is against public policy as expressed in the Securities Act and will be governed by the final adjudication
of such issue.
The Corporation, to the full extent permitted
by Section 145 of the DGCL, as amended from time to time, shall indemnify all persons whom it may indemnify pursuant thereto. Expenses
(including attorneys’ fees) incurred by an officer or director in defending any civil, criminal, administrative, or investigative
action, suit or proceeding for which such officer or director may be entitled to indemnification hereunder shall be paid by the Corporation
in advance of the final disposition of such action, suit or proceeding upon receipt of an undertaking by or on behalf of such director
or officer to repay such amount if it shall ultimately be determined that he/she is not entitled to be indemnified by the Corporation
as authorized hereby.
Our amended and restated bylaws will provide
for the indemnification of our directors, officers or other persons, and permit us to secure insurance on behalf of any officer, director
or employee for any liability arising out of his or her actions, regardless of whether Delaware law would permit such indemnification.
We will purchase a policy of directors’ and officers’ liability insurance that insures our officers and directors against
the cost of defense, settlement or payment of a judgment in some circumstances and insures us against our obligations to indemnify our
officers and directors.
We will enter into agreements with our officers
and directors to provide contractual indemnification in addition to the indemnification provided for in our amended and restated certificate
of incorporation.
Pursuant to the Underwriting Agreement, a form
of which is filed as Exhibit 1.1 to this Registration Statement, we have agreed to indemnify the underwriter, and the underwriter
has agreed to indemnify us, against certain civil liabilities that may be incurred in connection with this offering, including certain
liabilities under the Securities Act.
Item 15. Recent Sales of Unregistered Securities.
On June 2, 2021,
Emerald ESG Sponsor, LLC purchased 7,992,750 founder shares for an aggregate purchase price of $25,000, and on October 14, 2021,
we effected a 1.1014-for-1.0 stock split of our common stock, so that our sponsor owned an aggregate of 8,803,333 founder shares. On
November 12, 2021, we effected a 0.9955-for-1.0 stock split of our common stock, so that our sponsor owns an aggregate of 8,763,333
founder shares. The number of founder shares issued was determined based on the expectation that the founder shares would represent 25%
of our issued and outstanding shares of common stock upon completion of this offering. Such securities were issued in connection with
our organization pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities Act. Our sponsor
is an accredited investor for purposes of Rule 501 of Regulation D.
In addition, our sponsor,
a qualified institutional buyer (together with its affiliates), has committed, pursuant to written agreements, to purchase from us an
aggregate of 890,000 placement units (or 990,000 if the underwriter’s overallotment option is exercised in full) at $10.00 per
unit (for an aggregate purchase price of $8,900,000 or $9,900,000 if the underwriter’s overallotment option is exercised in full).
This purchase will take place on a private placement basis simultaneously with the completion of our initial public offering. This issuance
will be made pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities Act.
No underwriting discounts or commissions were
paid with respect to such sales.
In addition, if we increase the size of the offering
pursuant to Rule 462(b) under the Securities Act, we may effect a stock dividend immediately prior to the consummation of the
offering in such amount as to maintain our sponsor’s collective ownership of founder shares at 25% of the aggregate of our founder
shares and our public and private placement shares upon consummation of the offering. If we decrease the size of the offering, we expect
to effect a reverse split of our common stock immediately prior to the consummation of the offering in such amount as to maintain our
sponsor’s collective ownership of founder shares at 25% of the aggregate of our founder shares and our public and private placement
shares upon the date of this prospectus. Any such increased number of shares will be subject to forfeiture in the event that the underwriter’s
overallotment option is not exercised in full. Any such decreased number of shares will be forfeited, with the remainder subject to forfeiture
in the event that the underwriter’s overallotment option is not exercised in full.
Item 16. Exhibits and Financial Statement Schedules.
|
Exhibit No.
|
|
Description
|
|
1.1
|
|
Form of
Underwriting Agreement.*
|
|
3.1(a)
|
|
Amended
and Restated Certificate of Incorporation filed May 6, 2021.*
|
|
3.1(b)
|
|
Certificate
of Amendment to Certificate of Incorporation, filed November 15, 2021*
|
|
3.1(c)
|
|
Form of Second Amended and Restated Certificate of Incorporation*
|
|
3.2
|
|
Amended and Restated Bylaws.*
|
|
4.1
|
|
Specimen
Unit Certificate.*
|
|
4.2
|
|
Specimen
Common Stock Certificate.*
|
|
4.3
|
|
Specimen Warrant Certificate (included in Exhibit 4.4).*
|
|
4.4
|
|
Form of
Warrant Agreement between Continental Stock Transfer & Trust Company and the Registrant.*
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|
5.1
|
|
Opinion
of Reed Smith LLP*
|
|
10.1
|
|
Form of
Investment Management Trust Agreement between Continental Stock Transfer & Trust Company and the Registrant.*
|
|
10.2
|
|
Form of
Registration Rights Agreement among the Registrant and security holders.*
|
|
10.3
|
|
Form of
Placement Unit Subscription Agreement with Emerald ESG Sponsor, LLC.*
|
|
10.4
|
|
Securities
Subscription Agreement dated June 2, 2021 between Registrant and Emerald ESG Sponsor, LLC*
|
|
10.5
|
|
Form of
Letter Agreement by and between the Registrant, the Registrant’s security holders named therein, and the officers and directors
of the Registrant.*
|
|
10.6
|
|
Form of
Indemnity Agreement.*
|
|
10.7(a)
|
|
Promissory
Note for expenses prior to initial public offering expenses from Emerald ESG Sponsor, LLC to Registrant.*
|
|
10.7(b)
|
|
Amended
and Restated Promissory Note for expenses prior to initial public offering expenses from Emerald ESG Sponsor, LLC to Registrant.*
|
|
10.8
|
|
Form of
Administrative Services Agreement with Emerald ESG Sponsor, LLC*
|
|
14.1
|
|
Code
of Business Conduct and Ethics.*
|
|
23.1
|
|
Consent
of WithumSmith+Brown, PC *
|
|
23.2
|
|
Consent
of Reed Smith LLP (included in Exhibit 5.1).*
|
|
24.1
|
|
Powers of Attorney (included on signature page of the Registration Statement).*
|
|
99.1
|
|
Form of
Audit Committee Charter.*
|
|
99.2
|
|
Form of
Compensation Committee Charter.*
|
|
99.3
|
|
Consent
of Lisa Shalett*
|
|
99.4
|
|
Consent
of Andrew Hohns*
|
|
99.5
|
|
Consent
of Therese Rein*
|
|
99.6
|
|
Consent
of Tensie Whelan*
|
|
99.7
|
|
Consent
of Mark Tercek*
|
Item 17. Undertakings.
|
|
(a)
|
The undersigned hereby
undertakes to provide to the underwriter at the closing specified in the underwriting agreement,
certificates in such denominations and registered in such names as required by the underwriter
to permit prompt delivery to each purchaser.
|
|
|
(b)
|
Insofar as indemnification
for liabilities arising under the Securities Act may be permitted to directors, officers
and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise,
the registrant has been advised that in the opinion of the SEC such indemnification is against
public policy as expressed in the Act and is, therefore, unenforceable. In the event that
a claim for indemnification against such liabilities (other than the payment by the registrant
of expenses incurred or paid by a director, officer or controlling person of the registrant
in the successful defense of any action, suit or proceeding) is asserted by such director,
officer or controlling person in connection with the securities being registered, the registrant
will, unless in the opinion of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether such indemnification by
it is against public policy as expressed in the Securities Act and will be governed by the
final adjudication of such issue.
|
|
|
(c)
|
The undersigned registrant
hereby undertakes that:
|
|
|
(1)
|
For purposes of determining
any liability under the Securities Act, the information omitted from the form of prospectus
filed as part of this registration statement in reliance upon Rule 430A and contained
in a form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or
497(h) under the Securities Act shall be deemed to be part of this registration statement
as of the time it was declared effective.
|
|
|
(2)
|
For the purpose of determining
any liability under the Securities Act, each post-effective amendment that contains a form
of prospectus shall be deemed to be a new registration statement relating to the securities
offered therein, and the offering of such securities at that time shall be deemed to be the
initial bona fide offering thereof.
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|
|
(3)
|
For the purpose of determining
liability under the Securities Act of 1933 to any purchaser, if the registrant is subject
to Rule 430C, each prospectus filed pursuant to Rule 424(b) as part of a registration
statement relating to an offering, other than registration statements relying on Rule 430B
or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part
of and included in the registration statement as of the date it is first used after effectiveness.
Provided, however, that no statement made in a registration statement or prospectus that
is part of the registration statement or made in a document incorporated or deemed incorporated
by reference into the registration statement or prospectus that is part of the registration
statement will, as to a purchaser with a time of contract of sale prior to such first use,
supersede or modify any statement that was made in the registration statement or prospectus
that was part of the registration statement or made in any such document immediately prior
to such date of first use.
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|
|
(4)
|
For the purpose of determining
liability of a registrant under the Securities Act of 1933 to any purchaser in the initial
distribution of the securities, the undersigned registrant undertakes that in a primary offering
of securities of an undersigned registrant pursuant to this registration statement, regardless
of the underwriting method used to sell the securities to the purchaser, if the securities
are offered or sold to such purchaser by means of any of the following communications, the
undersigned registrant will be a seller to the purchaser and will be considered to offer
or sell such securities to such purchaser:
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(i)
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Any preliminary prospectus
or prospectus of the undersigned registrant relating to the offering required to be filed
pursuant to Rule 424;
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(ii)
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Any free writing
prospectus relating to the offering prepared by or on behalf of the undersigned registrant
or used or referred to by an undersigned registrant;
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(iii)
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The portion of any
other free writing prospectus relating to the offering containing material information about
the undersigned registrant or its securities provided by or on behalf of the undersigned
registrant; and
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(iv)
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Any other communication
that is an offer in the offering made by the undersigned registrant to the purchaser.
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SIGNATURES
Pursuant to the requirements
of the Securities Act of 1933, as amended, the registrant has duly caused this registration statement to be signed on its behalf by the
undersigned, thereunto duly authorized, in the City of Philadelphia, Commonwealth of Pennsylvania on this 19th day of November,
2021.
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FTAC EMERALD ACQUISITION CORP.
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By:
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/s/ Bracebridge H. Young, Jr.
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Name:
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Bracebridge H. Young, Jr.
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Title:
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President and Chief Executive Officer
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POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS,
that each of the undersigned constitutes and appoints Bracebridge H. Young, Jr., and Doug Listman his/her true and lawful attorneys-in-fact
and agents, with full power of substitution and resubstitution, for such person and in his/her name, place and stead, in any and all
capacities, to sign this Registration Statement on Form S-1 (including all pre-effective and post-effective amendments and registration
statements filed pursuant to Rule 462 under the Securities Act of 1933), and to file the same, with all exhibits thereto, and other
documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, each
acting alone, full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about
the premises, as fully to all intents and purposes as he/she might or could do in person, hereby ratifying and confirming that any such
attorney-in-fact and agent, or his/her substitute or substitutes, may lawfully do or cause to be done by virtue hereof.
Pursuant to the requirements
of the Securities Act of 1933, as amended, this Registration Statement has been signed below by the following persons in the capacities
and on the dates indicated.
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Name
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Position
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Date
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/s/ Bracebridge H. Young, Jr.
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President and CEO
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November 19, 2021
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Bracebridge H. Young, Jr.
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(Principal Executive Officer)
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/s/ Doug Listman
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Chief Financial Officer
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November 19, 2021
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Doug Listman
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(Principal Financial and Accounting Officer)
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/s/ Betsy Cohen
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Chairman of the Board
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November 19, 2021
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Betsy Cohen
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Exhibit 1.1
FTAC EMERALD ACQUISITION CORP.
22,000,000 Units
Underwriting Agreement
[ ], 2021
Goldman Sachs & Co. LLC
200 West Street,
New York, New York 10282-2198
Ladies and Gentlemen:
FTAC Emerald Acquisition Corp.,
a Delaware corporation (the “Company”), proposes, subject to the terms and conditions stated in this agreement (this “Agreement”),
to issue and sell to Goldman Sachs & Co. LLC (the “Underwriter”) an aggregate of 22,000,000 units (the “Firm Units”)
of the Company and, at the election of the Underwriter, up to 3,300,000 additional units, if any (the “Optional Units,” the
Optional Units, together with the Firm Units, that the Underwriter elect to purchase pursuant to Section 2 hereof being collectively
called the “Units”).
Each Unit consists of one
share of Class A common stock of the Company, par value U.S. $0.0001 per share (the “Common Stock”), and one-half of one redeemable
warrant, where each whole warrant entitles the holder to purchase one share of Common Stock (the “Warrant(s)”). The Common
Stock and Warrants included in the Units will not trade separately until the 52nd day following the date of the Prospectus (as defined
below), or, if such date is not a business day, the following business day (unless the Underwriter informs the Company of its decision
to allow earlier separate trading), subject to (a) the Company’s preparation of an audited balance sheet reflecting the receipt
by the Company of the proceeds of the Offering (as defined below), (b) the filing of such audited balance sheet with the Securities and
Exchange Commission (the “Commission”) on a Current Report on Form 8-K or similar form by the Company that includes such audited
balance sheet (the “Closing Form 8-K”), and (c) the Company having issued a press release announcing when such separate trading
will begin. Each whole Warrant entitles its holder, upon exercise, to purchase one share of Common Stock for U.S. $11.50 per share during
the period commencing on the date that is thirty (30) days after the completion of an initial Business Combination (as defined below)
and terminating on the five-year anniversary of the date of the completion of such initial Business Combination or earlier upon redemption
or the liquidation of the Trust Account (as defined below) in accordance with the Amended and Restated Certificate of Incorporation of
the Company (the “Amended and Restated Certificate of Incorporation”) if the Company fails to consummate a Business Combination
within the time period indicated in the Amended and Restated Certificate of Incorporation (the “Liquidation”); provided,
however, that pursuant to the Warrant Agreement (as defined below), a fractional warrant may not be exercised, so that only a whole
number of warrants may be exercised at any given time by a holder thereof. As used herein, the term “Business Combination”
(as described more fully in the Registration Statement) shall mean a merger, share exchange, asset acquisition, share purchase, reorganization
or similar business combination with one or more businesses involving the Company.
The Company has entered into
an Investment Management Trust Agreement, dated as of the date hereof, with Continental Stock Transfer & Trust Company (“CST”),
as trustee, in substantially the form filed as Exhibit 10.1 to the Registration Statement (the “Trust Agreement”), pursuant
to which the proceeds from the sale of the Private Placement Units (as defined below) and certain proceeds of the Offering will be deposited
and held in a U.S. based trust account (the “Trust Account”) for the benefit of the Company, the Underwriter and the Public
Stockholders, if and when issued in each case as described more fully in the Prospectus.
The Company has entered into
a Warrant Agreement, dated as of the date hereof, with respect to the Warrants and the warrants included in the Private Placement Units
and the Working Capital Units (as defined below) with CST, as warrant agent, in substantially the form filed as Exhibit 4.4 to the Registration
Statement (the “Warrant Agreement”), pursuant to which CST will act as warrant agent in connection with the issuance, registration,
transfer, exchange, redemption, and exercise of the Warrants and the warrants included in the Private Placement Units and the Working
Capital Units.
The Company entered into a
Securities Subscription Agreement, dated as of June 2, 2021, with Emerald ESG Sponsor, LLC, a Delaware limited liability company (the
“Sponsor”), in substantially the form filed as Exhibit 10.4 (the “Founder’s Subscription Agreement”),
pursuant to which the Sponsor then held an aggregate of 7,187,500 shares of Class B common stock, par value U.S. $0.0001 per share, of
the Company (including the Common Stock issuable upon conversion thereof, the “Founder Shares”), which it received for an
aggregate purchase price of $25,000. On October 14, 2021, the Company effected a 1.1014-for-1.0 stock split of its Common Stock and Founder
Shares, so that the Sponsor owned an aggregate of 8,803,333 Founder Shares (up to 1,140,000 shares of which are subject to forfeiture
depending on the extent to which the Underwriter’s overallotment option is exercised). On November 12, 2021, the Company effected
a 0.9955-for-1.0 stock split of its Common Stock and Founder Shares, so that the Sponsor owns an aggregate of 8,763,333 shares of Class
B common stock (up to 1,133,333 shares of which are subject to forfeiture depending on the extent to which the Underwriter’s overallotment
option is exercised). The Founder Shares are substantially similar to the Common Stock included in the Units, except as described in the
Prospectus.
The Company has entered into
a Placement Unit Subscription Agreement, dated as of the date hereof, with the Sponsor, in substantially the form filed as Exhibit 10.3
to the Registration Statement (the “Placement Unit Purchase Agreement”), pursuant to which the Sponsor, agreed to purchase
an aggregate of 890,000 units (or up to 990,000 units if the Underwriter’s over-allotment option is exercised in full) at a price
of $10.00 per unit, each unit consists of one share of Common Stock, and one-half of one warrant entitling the holder, upon exercise,
to purchase one share of Common Stock for $11.50 per share, subject to adjustment (the “Private Placement Units”). The Private
Placement Units are identical to the Units sold in the initial public offering, except as described in the Prospectus.
The Company has entered into
a Registration Rights Agreement, dated as of the date hereof, with the Sponsor and the other security holders of the Company party thereto,
in substantially the form filed as Exhibit 10.2 to the Registration Statement (the “Registration Rights Agreement”), pursuant
to which the Company has granted certain registration rights in respect of the Founder Shares and the Private Placement Units and the
shares of Common Stock underlying the Private Placement Units and the Units that may be issued upon conversion of up to $2,000,000 of
working capital loans (the “Working Capital Units”).
The Company has caused to
be duly executed and delivered a letter agreement, dated the date hereof (the “Insider Letter”), by and among the Sponsor,
each of the Company’s officers and directors, and certain other entities signatory thereto as acknowledged and agreed to by the
Company, in substantially the form filed as Exhibit 10.5 to the Registration Statement.
The Company has entered into
an Administrative Services Agreement, dated as of the date hereof, with the Sponsor, in substantially the form filed as Exhibit 10.8 to
the Registration Statement (the “Services Agreement”), pursuant to which the Company will, subject to the terms of the Services
Agreement, pay to the Sponsor an aggregate monthly fee of up to U.S. $30,000 for administrative and support services from the date the
Units are first listed on The Nasdaq Global Market (“Nasdaq”) until the earlier of (x) the consummation of an initial Business
Combination and (y) the Liquidation.
1.
The Company represents and warrants to, and agrees with, the Underwriter that:
(a)
A registration statement on Form S-1 (File No. 333-[●]) (the “Initial Registration Statement”) in respect of
the Units has been filed with the Commission; the Initial Registration Statement and any post-effective amendment thereto, each in the
form heretofore delivered to you, have been declared effective by the Commission in such form; other than a registration statement, if
any, increasing the size of the offering (a “Rule 462(b) Registration Statement”), filed pursuant to Rule 462(b) under the
Securities Act of 1933, as amended (the “Act”), which became effective upon filing, no other document with respect to the
Initial Registration Statement has been filed with the Commission; and no stop order suspending the effectiveness of the Initial Registration
Statement, any post-effective amendment thereto or the Rule 462(b) Registration Statement, if any, has been issued and no proceeding for
that purpose has been initiated or threatened by the Commission (any preliminary prospectus included in the Initial Registration Statement
or filed with the Commission pursuant to Rule 424(a) of the rules and regulations of the Commission under the Act is hereinafter called
a “Preliminary Prospectus”; the various parts of the Initial Registration Statement and the Rule 462(b) Registration Statement,
if any, including all exhibits thereto and including the information contained in the form of final prospectus filed with the Commission
pursuant to Rule 424(b) under the Act in accordance with Section 5(a) hereof and deemed by virtue of Rule 430A under the Act
to be part of the Initial Registration Statement at the time it was declared effective, each as amended at the time such part of the Initial
Registration Statement became effective or such part of the Rule 462(b) Registration Statement, if any, became or hereafter becomes effective,
are hereinafter collectively called the “Registration Statement”; the Preliminary Prospectus relating to the Units that was
included in the Registration Statement immediately prior to the Applicable Time (as defined in Section 1(d) hereof) is hereinafter
called the “Pricing Prospectus”; and such final prospectus, in the form first filed pursuant to Rule 424(b) under the Act,
is hereinafter called the “Prospectus”; any oral or written communication with potential investors undertaken in reliance
on Section 5(d) of the Act or Rule 163B under the Act is hereinafter called a “Testing-the-Waters Communication”; and any
Testing-the-Waters Communication that is a written communication within the meaning of Rule 405 under the Act is hereinafter called a
“Written Testing-the-Waters Communication”; and any “issuer free writing prospectus” as defined in Rule 405 under
the Act is hereinafter called an “Issuer Free Writing Prospectus”).
(b)
(i) No order preventing or suspending the use of any Preliminary Prospectus has been issued by the Commission, and (ii) each
Preliminary Prospectus, at the time of filing thereof, conformed in all material respects to the requirements of the Act and the rules
and regulations of the Commission thereunder, and did not contain an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they
were made, not misleading; provided, however, that this representation and warranty shall not apply to any statements or
omissions made in reliance upon and in conformity with the Underwriter Information (as defined in Section 9(b) of this Agreement).
(c)
The Company has filed with the Commission a registration statement on Form 8-A (file number 001-[●]) providing for the registration
under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), of the Units, the Common Stock and the Warrants,
which registration is currently effective on the date hereof. The Units and the Common Stock and Warrants included as part of the Units
have been authorized for listing, subject to official notice of issuance and evidence of satisfactory distribution, on the New York Stock
Exchange, and the Company knows of no reason or set of facts that is likely to adversely affect such authorization.
(d) For
the purposes of this Agreement, the “Applicable Time” is [●] p.m. (Eastern time) on the date of this Agreement.
The Pricing Prospectus, as supplemented by the information listed on Schedule II(c) hereto, taken together
(collectively, the “Pricing Disclosure Package”), as of the Applicable Time, did not, and as of each Time of Delivery
(as defined in Section 4(a) of this Agreement) will not, include any untrue statement of a material fact or omit to
state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were
made, not misleading; and each Written Testing-the-Waters Communication does not conflict with the information contained in the
Registration Statement, the Pricing Prospectus or the Prospectus and each Written Testing-the-Waters Communication, as supplemented
by and taken together with the Pricing Disclosure Package, as of the Applicable Time, did not , and as of each Time of Delivery will
not, include any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading; provided, however, that this
representation and warranty shall not apply to statements or omissions made in reliance upon and in conformity with the Underwriter
Information.
(e)
The Registration Statement conforms, and the Prospectus and any further amendments or supplements to the Registration Statement
and the Prospectus will conform, in all material respects to the requirements of the Act and the rules and regulations of the Commission
thereunder and do not and will not, as of the applicable effective date (the “Effective Date”) as to each part of the Registration
Statement, as of the applicable filing date as to the Prospectus and any amendment or supplement thereto, and as of each Time of Delivery,
contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to
make the statements therein (with respect to the Prospectus, in the light of the circumstances under which they were made) not misleading;
provided, however, that this representation and warranty shall not apply to any statements or omissions made in reliance upon and
in conformity with the Underwriter Information.
(f)
The Company has not, since the date of the latest audited financial statements included in the Pricing Prospectus, (i) sustained
any material loss or interference with its business from fire, explosion, flood or other calamity, whether or not covered by insurance,
or from any labor dispute or court or governmental action, order or decree or (ii) entered into any transaction or agreement (whether
or not in the ordinary course of business) that is material to the Company or incurred any liability or obligation, direct or contingent,
that is material to the Company, in each case other than as set forth or contemplated in the Pricing Prospectus; and, since the respective
dates as of which information is given in the Registration Statement and the Pricing Prospectus, there has not been (x) any change in
the share capital or long-term debt of the Company or (y) any Material Adverse Effect (as defined below); as used in this Agreement, “Material
Adverse Effect” shall mean any material adverse change or effect, or any development involving a prospective material adverse change
or effect, in or affecting (i) the business, properties, general affairs, management, financial position, stockholders’ equity or
results of operations of the Company, except as set forth or contemplated in the Pricing Prospectus, or (ii) the ability of the Company
to perform its obligations under this Agreement, including the issuance and sale of the Units or the Common Stock and the Warrants included
therein, or to consummate the transactions contemplated in the Pricing Prospectus and the Prospectus.
(g) The
Company does not own any real property, and the Company has good and marketable title to all personal property owned by it, in each
case free and clear of all liens, encumbrances and defects except such as are described in the Pricing Prospectus or such as do not
materially affect the value of such property and do not interfere with the use made and proposed to be made of such property by the
Company; and any real property and buildings held under lease by the Company are held by it under valid, subsisting and enforceable
leases with such exceptions as are not material and do not materially interfere with the use made and proposed to be made of such
property and buildings by the Company.
(h)
The Company has been (i) duly incorporated and is validly existing and in good standing under the laws of its jurisdiction of organization,
with power and authority (corporate and other) to own its properties and conduct its business as described in the Pricing Prospectus,
and (ii) duly qualified as a foreign corporation for the transaction of business and is in good standing under the laws of each other
jurisdiction in which it owns or leases properties or conducts any business so as to require such qualification, except, in the case of
this clause (ii), where the failure to be so qualified or in good standing would not, individually or in the aggregate, have a Material
Adverse Effect.
(i)
The Company has an authorized capitalization as set forth in the Pricing Prospectus and all of the issued shares of the Company
have been duly and validly authorized and issued and are fully paid and non-assessable and conform to the description thereof contained
in the Pricing Disclosure Package and Prospectus.
(j)
All issued and outstanding shares of the Company have been duly and validly authorized and issued and are fully paid and nonassessable;
and none of such shares were issued in violation of the preemptive rights of any holders of any security of the Company or similar contractual
rights granted by the Company. The offers and sales of the outstanding Common Stock and Warrants were at all relevant times either registered
under the Act, the applicable state securities and blue sky laws or, based in part on the representations and warranties of the purchasers
of such Common Stock and Warrants, exempt from or not subject to such registration requirements. The holders of outstanding shares of
the Company are not entitled to preemptive or other rights to subscribe for the Common Stock or Warrants; and, except as set forth in
the Registration Statement, Pricing Prospectus and the Prospectus, no options, warrants or other rights to purchase, agreements or other
obligations to issue, or rights to convert any obligations into or exchange any securities for, shares or other ownership interests in
the Company are outstanding.
(k)
The Units have been duly authorized and, when issued and delivered against payment therefor as provided herein, will be duly and
validly issued and delivered, will constitute valid and binding obligations of the Company, enforceable against the Company in accordance
with their terms, except as the enforceability thereof may be limited by bankruptcy, insolvency, or similar laws affecting creditors’
rights generally from time to time in effect and by equitable principles of general applicability, and will conform to the description
of the Units contained in the Pricing Disclosure Package and the Prospectus; and the issuance of the Units is not subject to any
preemptive or similar rights.
(l) The
Common Stock included in the Units have been duly authorized and, when issued and delivered against payment for the Units by the
Underwriter pursuant to this Agreement and registered in the Company’s register of members, will be validly issued, fully paid
and nonassessable. The holders of such shares of Common Stock are not and will not be subject to personal liability by reason of
being such holders; such shares of Common Stock are not and will not be subject to any preemptive or other similar contractual
rights granted by the Company.
(m)
The Warrants included in the Units have been duly authorized and, when issued and delivered in the manner set forth in the Warrant
Agreement against payment for the Units by the Underwriter pursuant to this Agreement, will be duly and validly issued and delivered,
and will constitute valid and binding obligations of the Company, enforceable against the Company in accordance with their terms, except
as the enforceability thereof may be limited by bankruptcy, insolvency, or similar laws affecting creditors’ rights generally from
time to time in effect and by equitable principles of general applicability.
(n)
The Common Stock issuable upon exercise of the Warrants included in the Units and the Private Placement Units have been duly authorized
and reserved for issuance upon exercise thereof and, when executed by the Company and countersigned, and issued and delivered against
payment therefor pursuant to the Warrants and the Private Placement Units, as applicable, and the Warrant Agreement and registered in
the Company’s register of members, will be validly issued, fully paid and nonassessable. The holders of such shares of Common Stock
are not and will not be subject to personal liability by reason of being such holders; such shares of Common Stock are not and will
not be subject to any preemptive or other similar contractual rights granted by the Company; and all corporate action required to
be taken for the authorization, issuance and sale of such shares of Common Stock (other than such execution (if applicable), countersignature
(if applicable) and delivery at the time of issuance) has been duly and validly taken.
(o)
Except as set forth in the Registration Statement, the Pricing Prospectus and the Prospectus, no holders of any securities of the
Company or any rights exercisable for or convertible or exchangeable into securities of the Company have the right to require the Company
to register any such securities of the Company under the Act or to include any such securities in a registration statement to be filed
by the Company.
(p)
No securities of the Company have been sold by the Company or by or on behalf of, or for the benefit of, any person or persons
controlling, controlled by, or under common control with the Company from its inception through and including the date hereof, except
as disclosed in the Registration Statement, the Pricing Prospectus and the Prospectus.
(q)
Neither the Company nor any of its affiliates has, prior to the date hereof, made any offer or sale of any securities that are
required to be “integrated” pursuant to the Act with the offer and sale of the Units pursuant to the Registration Statement.
(r)
The issued and outstanding Founder Shares are duly authorized, validly issued, fully paid and nonassessable.
(s) The
issue and sale of the Units and the compliance by the Company with this Agreement, the Trust Agreement, the Warrant Agreement, the
Founder’s Subscription Agreement, the Placement Unit Purchase Agreement, the Registration Rights Agreement, the Insider Letter
or the Services Agreement and the consummation of the transactions contemplated in this Agreement, the Trust Agreement, the Warrant
Agreement, the Founder’s Subscription Agreement, the Placement Unit Purchase Agreement, the Registration Rights Agreement, the
Insider Letter or the Services Agreement will not conflict with or result in a breach or violation of any of the terms or provisions
of, or constitute a default under, (A) any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to
which the Company is a party or by which the Company is bound or to which any of the property or assets of the Company is subject,
except, in the case of this clause (A) for such defaults, breaches, or violations that would not, individually or in the
aggregate, have a Material Adverse Effect, (B) the Amended and Restated Certificate of Incorporation (or similar organizational
documents of the Company), or (C) any statute or any judgment, order, rule or regulation of any court or governmental agency or body
having jurisdiction over the Company or any of its properties; and no consent, approval, authorization, order, registration or
qualification of or with any such court or governmental agency or body is required for the issue and sale of the Units or the
consummation by the Company of the transactions contemplated by this Agreement, except such as have been obtained under the Act, the
approval by the Financial Industry Regulatory Authority, Inc. (“FINRA”) of the underwriting terms and arrangements and
such consents, approvals, authorizations, registrations or qualifications as may be required under state securities or Blue Sky laws
in connection with the purchase and distribution of the Units by the Underwriter;
(t) The
historical financial statements, including the notes thereto and the supporting schedules, if any, of the Company included in the
Pricing Prospectus, the Prospectus and the Registration Statement present fairly the financial condition, results of operations and
cash flows of the Company as of the dates and for the periods indicated, comply as to form with the applicable accounting
requirements of the Act and have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”)
applied on a consistent basis throughout the periods involved (except as otherwise noted therein). The supporting schedules, if any,
present fairly in accordance with GAAP the information required to be stated therein. The summary financial data set forth under the
caption “Summary Financial Data” in the Pricing Prospectus, Prospectus and Registration Statement fairly present, on the
basis stated in the Pricing Prospectus, Prospectus and Registration Statement, the information included therein. The Company is not
party to any off-balance sheet transactions, arrangements, obligations (including contingent obligations), or other relationships
with unconsolidated entities or other persons that may have a material current or future effect on the Company’s financial
condition, changes in financial condition, results of operations, liquidity, capital expenditures, capital resources, or significant
components of revenues or expenses. The statistical, industry-related and market-related data included in the Registration
Statement, the Pricing Prospectus and the Prospectus are based on or derived from sources that the Company reasonably and in good
faith believes are reliable and accurate, and such data agree with the sources from which they are derived. Except as included
therein, no historical or pro forma financial statements or supporting schedules are required to be included in the Registration
Statement, the Pricing Prospectus or the Prospectus under the Act or the rules and regulations promulgated thereunder. All
disclosures contained in the Registration Statement, the Pricing Prospectus and the Prospectus regarding “non-GAAP financial
measures” (as such term is defined by the rules and regulations of the Commission) comply with Regulation G of the Exchange
Act and Item 10 of Regulation S-K of the Act, to the extent applicable.
(u)
The Company is not (i) in violation of its Certificate of Incorporation (or similar organizational documents of the Company), (ii)
in violation of any statute or any judgment, order, rule or regulation of any court or governmental agency or body having jurisdiction
over the Company or any of its properties, or (iii) in default in the performance or observance of any obligation, agreement, covenant
or condition contained in any indenture, mortgage, deed of trust, loan agreement, lease or other agreement or instrument to which it is
a party or by which it or any of its properties may be bound, except, in the case of the foregoing clauses (ii) and (iii), for such
defaults as would not, individually or in the aggregate, have a Material Adverse Effect.
(v)
The statements set forth in the Pricing Prospectus and the Prospectus under the caption “Description of Securities”,
insofar as they purport to constitute a summary of the terms of the Units, under the captions “Taxation”, “Principal
Stockholders,” “Certain Relationships and Related Party Transactions,” and under the caption “Underwriting”,
insofar as they purport to describe the provisions of the laws and documents referred to therein, are accurate, complete and fair in all
material respects.
(z) Other
than as set forth in the Registration Statement, the Pricing Prospectus and the Prospectus, there are no legal or governmental proceedings
pending to which the Company or, to the Company’s knowledge, any officer or director of the Company, is a party or of which any
property of the Company, is the subject which, if determined adversely to the Company (or such officer or director), would individually
or in the aggregate have a Material Adverse Effect; and, to the Company’s knowledge, no such proceedings are threatened or contemplated
by governmental authorities or others.
(w)
The Company is not and, after giving effect to the offering and sale of the Units and the application of the proceeds thereof,
will not be an “investment company”, as such term is defined in the Investment Company Act of 1940, as amended (the “Investment
Company Act”).
(x)
At the time of filing the Initial Registration Statement and any post-effective amendment thereto, at the earliest time thereafter
that the Company or any offering participant made a bona fide offer (within the meaning of Rule 164(h)(2) under the Act) of the Units,
and at the date hereof, the Company was and is an “ineligible issuer,” as defined under Rule 405 under the Act.
(y)
The Company has not prepared or used any Issuer Free Writing Prospectus.
(z)
WithumSmith+Brown, PC (“Withum”), who have certified certain financial statements of the Company and delivered their
report with respect to the audited financial statements and schedules included in the Registration Statement, Pricing Prospectus and the
Prospectus, are independent public accountants as required by the Act and the rules and regulations of the Commission thereunder.
(aa)
To the extent required by Rule 13a-15(e) under the Exchange Act, the Company will maintain “disclosure controls and procedures”
(as defined in Rule 13a-15(e) under the Exchange Act) a system of internal accounting controls sufficient to provide reasonable assurances
that (i) transactions are executed in accordance with management’s general or specific authorization, (ii) transactions are recorded
as necessary in order to permit preparation of financial statements in accordance with GAAP and to maintain accountability for assets,
(iii) access to assets is permitted only in accordance with management’s general or specific authorization, and (iv) the recorded
accountability for assets is compared with existing assets at reasonable intervals and appropriate action is taken with respect to any
differences.
(bb)
There is no franchise, contract or other document of a character required to be described in the Registration Statement or Prospectus,
or to be filed as an exhibit thereto, which is not described or filed as required (and the Pricing Prospectus contains in all material
respects the same description of the foregoing matters contained in the Prospectus). There are no business relationships or related party
transactions involving the Company or any other person required by the Act to be described in the Registration Statement or Prospectus
that have not been described as required.
(cc)
This Agreement has been duly authorized, executed and delivered by the Company.
(dd)
The Private Placement Units, when delivered upon consummation of the Offering, will be duly executed, authenticated and issued,
and will constitute valid and binding obligations of the Company, enforceable against the Company in accordance with their terms, except
as the enforceability thereof may be limited by bankruptcy, insolvency, or similar laws affecting creditors’ rights generally from
time to time in effect and by equitable principals of general applicability;
(ee)
The Trust Agreement has been duly authorized and, when delivered in connection with the consummation of this Offering, will be
duly executed and delivered by the Company and will be a valid and binding agreement of the Company, enforceable against the Company,
in accordance with its terms except as the enforceability thereof may be limited by bankruptcy, insolvency, or similar laws affecting
creditors’ rights generally from time to time in effect and by equitable principles of general applicability.
(ff) The
Warrant Agreement has been duly authorized and, when delivered in connection with the consummation of this Offering, will be duly
executed and delivered by the Company and will be a valid and binding agreement of the Company, enforceable against the Company in
accordance with its terms except as the enforceability thereof may be limited by bankruptcy, insolvency, or similar laws affecting
creditors’ rights generally from time to time in effect and by equitable principles of general applicability.
(gg)
The Founder’s Subscription Agreement has been duly authorized, executed and delivered by the Company and the Sponsor, and
is a valid and binding agreement of the Company and the Sponsor, enforceable against the Company and the Sponsor in accordance with its
terms except as the enforceability thereof may be limited by bankruptcy, insolvency, or similar laws affecting creditors’ rights
generally from time to time in effect and by equitable principles of general applicability.
(hh)
The Placement Unit Purchase Agreement has been duly authorized, executed and delivered by the Company and the Sponsor, and is a
valid and binding agreement of the Company and the Sponsor, enforceable against the Company and the Sponsor in accordance with its terms
except as the enforceability thereof may be limited by bankruptcy, insolvency, or similar laws affecting creditors’ rights generally
from time to time in effect and by equitable principles of general applicability.
(ii)
The Registration Rights Agreement has been duly authorized and, when delivered in connection with the consummation of this Offering,
will be duly executed and delivered by the Company and will be a valid and binding agreement of the Company, enforceable against the Company
in accordance with its terms except as the enforceability thereof may be limited by bankruptcy, insolvency, or similar laws affecting
creditors’ rights generally from time to time in effect and by equitable principles of general applicability.
(jj)
The Insider Letter has been duly authorized and executed by the Company, the Sponsor and, to the Company’s knowledge, each
executive officer, director and director nominee of the Company, respectively, and is a valid and binding agreement of the Company, the
Sponsor and, to the Company’s knowledge, each such executive officer, director and director nominee, respectively, enforceable against
the Company, the Sponsor and, to the Company’s knowledge, each such executive officer, director and director nominee, respectively,
in accordance with its terms except as the enforceability thereof may be limited by bankruptcy, insolvency, or similar laws affecting
creditors’ rights generally from time to time in effect and by equitable principles of general applicability.
(kk)
The Services Agreement has been duly authorized, executed and delivered by the Company and is a valid and binding agreement of
the Company, enforceable against the Company in accordance with its terms except as the enforceability thereof may be limited by bankruptcy,
insolvency, or similar laws affecting creditors’ rights generally from time to time in effect and by equitable principles of general
applicability.
(ll) The
Company has not and no director, officer, agent, employee, affiliate or other person associated with or acting on behalf of the
Company has (i) made, offered, promised or authorized any unlawful contribution, gift, entertainment or other unlawful expense;
(ii) made, offered, promised or authorized any direct or indirect unlawful payment; or (iii) violated or is in violation of any
provision of the Foreign Corrupt Practices Act of 1977, the Bribery Act 2010 of the United Kingdom or any other applicable
anti-bribery or anti-corruption law (collectively, “Anti-Bribery Laws”). The Company has instituted and maintained
policies and procedures reasonably designed to promote and ensure continued compliance with all Anti-Bribery Laws and with the
representation and warranty contained herein.
(mm)
The operations of the Company are and have been conducted at all times in compliance with the requirements of applicable anti-money
laundering laws, including, but not limited to, the Bank Secrecy Act of 1970, as amended by the USA PATRIOT ACT of 2001, and the rules
and regulations promulgated thereunder, and the anti-money laundering laws of the various jurisdictions in which the Company conducts
business (collectively, the “Money Laundering Laws”) and no action, suit or proceeding by or before any court or governmental
agency, authority or body or any arbitrator involving the Company with respect to the Money Laundering Laws is pending or, to the knowledge
of the Company, threatened.
(nn)
The Company is not, and to the knowledge of the Company, no director, officer, agent, employee or affiliate of the Company is currently
the subject or the target of any sanctions administered or enforced by the U.S. Government, including, without limitation, the Office
of Foreign Assets Control of the U.S. Department of the Treasury, or the U.S. Department of State and including, without limitation, the
designation as a “specially designated national” or “blocked person,” the European Union, Her Majesty’s
Treasury, the United Nations Security Council, or other relevant sanctions authority (collectively, “Sanctions”), nor is the
Company located, organized or resident in a country or territory that is the subject or target of Sanctions, and the Company will not
directly or indirectly use the proceeds of the offering of the Units hereunder, or lend, contribute or otherwise make available such proceeds
to any subsidiary, joint venture partner or other person or entity (i) to fund or facilitate any activities of or business with any person,
or in any country or territory, that, at the time of such funding, is the subject or the target of Sanctions or (ii) in any other manner
that will result in a violation by any person (including any person participating in the transaction, whether as underwriter, advisor,
investor or otherwise) of Sanctions.
(oo)
From the time of the initial confidential submission of a registration statement relating to the Units with the Commission through
the date hereof, the Company has been and is an “emerging growth company” as defined in Section 2(a)(19) of the Act (an “Emerging
Growth Company”).
(pp) There
is and has been no failure on the part of the Company or, to the knowledge of the Company, any of the Company’s officers or
directors, in their capacities as such, to comply with (as and when applicable), and immediately following the initial effective
date of the Registration Statement the Company will be in compliance with, the requirements of Nasdaq Marketplace Rule IM 5605.
Further, there is and has been no failure on the part of the Company or, to the knowledge of the Company, any of the Company’s
officers or directors, in their capacities as such, to comply with (as and when applicable), and immediately following the initial
effective date of the Registration Statement the Company will be in compliance with, the phase-in requirements and all other
provisions of the Nasdaq corporate governance requirements set forth in the Nasdaq Rules.
(qq)
There are no transfer, stamp, issue, registration, documentary or other similar taxes, duties, fees or charges under U.S. federal
law or the laws of any state, or any political subdivision thereof, or under the laws of any non-U.S. jurisdiction, required to be paid
in connection with the execution and delivery of this Agreement or the issuance or sale by the Company of the Units.
(rr)
The Company has filed all tax returns (including U.S. federal, state and non-U.S.) that are required to be filed by it or has requested
extensions thereof (except in any case in which the failure so to file would not have a Material Adverse Effect) through the date hereof
and has paid all taxes required to be paid by it and any other assessment, fine or penalty levied against it, to the extent that any of
the foregoing is due and payable, except for any such assessment, fine or penalty that is currently being contested in good faith and
for which adequate reserves required by GAAP have been created with respect thereto or as would not have a Material Adverse Effect, except
as set forth in or contemplated in the Registration Statement, Pricing Prospectus and the Prospectus (exclusive of any supplement thereto).
(ss)
The Company possesses all licenses, certificates, permits and other authorizations issued by the appropriate federal, state or
foreign regulatory authorities necessary to conduct its business, and the Company has not received any notice of proceedings relating
to the revocation or modification of any such license, certificate, authorization or permit that, singly or in the aggregate, if the subject
of an unfavorable decision, ruling or finding, would have a Material Adverse Effect, except as set forth in or contemplated in the Pricing
Prospectus and the Prospectus (exclusive of any supplement thereto).
(tt)
The Company (i) does not have any material lending or other relationship with any bank or lending affiliate of the Underwriter
and (ii) does not intend to use any of the proceeds from the sale of the Units hereunder to repay any outstanding debt owed to any affiliate
of the Underwriter.
(uu)
All information contained in the questionnaires (the “Questionnaires”) completed by the Sponsor and, to the knowledge
of the Company, the Company’s officers, directors and director nominees and provided to the Underwriter, is true and correct in
all material respects and the Company has not become aware of any information that would cause the information disclosed in the Questionnaires
completed by the Sponsor or the Company’s officers, directors and director nominees to become inaccurate and incorrect.
(vv)
Prior to the date hereof, the Company has not selected any specific acquisition target and has not, nor has anyone on its behalf,
initiated any substantive discussions, directly or indirectly, with any business combination target with respect to an initial Business
Combination.
(ww)
Except as described in the Registration Statement, the Pricing Prospectus and the Prospectus, there are no claims, payments, arrangements,
contracts, agreements or understandings relating to the payment of a brokerage commission or finder’s, consulting, origination or
similar fee by the Company or the Sponsor with respect to the sale of the Units hereunder or any other arrangements, agreements or understandings
of the Company, the Sponsor or any officer or director of the Company, or their respective affiliates, that may affect the Underwriter’s
compensation, as determined by FINRA.
(xx)
Except as described in the Registration Statement, the Pricing Prospectus and the Prospectus, the Company has not made any direct
or indirect payments (in cash, securities or any other “underwriting compensation” as defined in Rule 5110(j)(22) of the FINRA
Manual): (i) to any person, as a finder’s fee, consulting fee or otherwise, in consideration of such person raising capital for
the Company or introducing to the Company persons who raised or provided capital to the Company; (ii) to any person that, to the
Company’s knowledge, has been accepted by FINRA as a member of FINRA (a “Member”); or (iii) to any person or entity
that, to the Company’s knowledge, has any direct or indirect affiliation or association with any Member, within the 180 days prior
to the first confidential submission of the Registration Statement through the Effective Date, other than payments to the Underwriter
pursuant to this Agreement.
(yy)
Except as described in the Registration Statement, the Pricing Prospectus and the Prospectus, during the period beginning 180 days
prior to the initial confidential submission of the Registration Statement and ending on the Effective Date, no Member and/or any person
associated or affiliated with a Member has provided any investment banking, financial advisory and/or consulting services to the Company.
(zz)
Except as disclosed in the FINRA Questionnaires provided to the Underwriter, to the Company’s knowledge, no officer, director,
or beneficial owner of any class of the Company’s securities (whether debt or equity, registered or unregistered, regardless of
the time acquired or the source from which derived) (any such individual or entity, a “Company Affiliate”) is a Member or
a person associated or affiliated with a Member.
(aaa)
Except as disclosed in the FINRA Questionnaires provided to the Underwriter, to the Company’s knowledge, no Company Affiliate
is an owner of shares or other securities of any Member (other than securities purchased on the open market).
(bbb)
No Company Affiliate has made a subordinated loan to any Member.
(ccc)
Except as described in the Registration Statement, the Pricing Prospectus and the Prospectus, no proceeds from the sale of the
Units (excluding underwriting compensation as disclosed in the Registration Statement, Pricing Prospectus and the Prospectus) will be
paid by the Company to any Member, or any persons associated or affiliated with a Member.
(ddd)
The Company has not issued any warrants or other securities, or granted any options, directly or indirectly to anyone who is a
potential underwriter in the Offering or a related person (as defined by FINRA rules) of such an underwriter within the 180-day period
prior to the initial confidential submission of the Registration Statement.
(eee)
No person to whom securities of the Company have been privately issued within the 180-day period prior to the initial confidential
submission of the Registration Statement has to the Company’s knowledge any relationship or affiliation or association with any
Member.
(fff)
To the Company’s knowledge, no Member intending to participate in the Offering has a conflict of interest with the Company.
For this purpose, a “conflict of interest” means, if at the time of the Member’s participation in the Offering, any
of the following applies: (A) the securities are to be issued by the Member; (B) the Company controls, is controlled by or is under
common control with the Member or the Member’s associated persons; (C) at least 5% of the net offering proceeds, not including
underwriting compensation, are intended to be: (i) used to reduce or retire the balance of a loan or credit facility extended by the Member,
its affiliates and its associated persons, in the aggregate; or (ii) otherwise directed to the Member, its affiliates and associated
persons, in the aggregate; or (D) as a result of the Offering and any transactions contemplated at the time of the Offering: (i)
the Member will be an affiliate of the Company; (ii) the Member will become publicly owned; or (iii) the Company will become
a Member or form a broker-dealer subsidiary.
(ggg)
The Company has not taken, directly or indirectly, any action designed to or that would constitute or that might reasonably be
expected to cause or result in, under the Exchange Act or otherwise, stabilization or manipulation of the price of any security of the
Company to facilitate the sale or resale of the Units.
(hhh)
The Company does not own an interest in any corporation, partnership, limited liability company, joint venture, trust or other
entity.
(iii) No
relationship, direct or indirect, exists between or among any of the Company or any affiliate of the Company, on the one hand, and
any director, director nominee, officer, stockholder, special advisor, customer or supplier of the Company or any affiliate of the
Company, on the other hand, which is required by the Act or the Exchange Act to be described in the Registration Statement, Pricing
Prospectus or the Prospectus that is not described as required. There are no outstanding loans, advances (except normal advances for
business expenses in the ordinary course of business) or guarantees of indebtedness by the Company to or for the benefit of any of
the officers, directors or director nominees of the Company or any of their respective family members, except as disclosed in the
Registration Statement, Pricing Prospectus and the Prospectus. The Company has not extended or maintained credit, arranged for the
extension of credit, or renewed an extension of credit, in the form of a personal loan to or for any director or officer of the
Company.
(jjj)
The Company has not offered, or caused the Underwriter to offer, the Units to any person or entity with the intention of unlawfully
influencing: (a) a customer or supplier of the Company or any affiliate of the Company to alter the customer’s or supplier’s
level or type of business with the Company or such affiliate or (b) a journalist or publication to write or publish favorable information
about the Company or any such affiliate.
(kkk)
Upon delivery and payment for the Units on the Closing Date (as defined below), the Company will not be subject to Rule 419 under
the Act and none of the Company’s outstanding securities will be deemed to be a “penny stock” as defined in Rule 3a51-1
under the Exchange Act.
(lll)
From the time of the initial confidential submission of the Registration Statement to the Commission (or, if earlier, the first
date on which the Company engaged, directly or through any person authorized to act on its behalf, in any Testing-the-Waters Communication)
through the Execution Time, the Company has been and is an Emerging Growth Company. “Testing-the-Waters Communication” means
any oral or written communication with potential investors undertaken in reliance on Section 5(d) of the Act.
(mmm)
The Company does not have any subsidiaries.
(nnn)
As of the time of filing of the Registration Statement, the Company was a “smaller reporting company”, as defined in
Rule 12b-2 of the Exchange Act Regulations.
2.
Subject to the terms and conditions herein set forth, (a) the Company agrees to issue and sell to the Underwriter, and the Underwriter
agrees to purchase from the Company, at a purchase price per unit of $9.80, the number of Firm Units set forth opposite the name of the
Underwriter in Schedule I hereto and (b) in the event and to the extent that the Underwriter shall exercise the election to
purchase Optional Units as provided below, the Company agrees to issue and sell to the Underwriter, and the Underwriter agrees to purchase
from the Company, at the purchase price per unit set forth in clause (a) of this Section 2 (provided that the
purchase price per Optional Unit shall be reduced by an amount per unit equal to any dividends or distributions declared by the Company
and payable on the Firm Units but not payable on the Optional Units), that portion of the number of Optional Units as to which such election
shall have been exercised (to be adjusted by you so as to eliminate fractional shares) determined by multiplying such number of Optional
Units by a fraction, the numerator of which is the maximum number of Optional Units which the Underwriter is entitled to purchase as set
forth opposite the name of the Underwriter in Schedule I hereto and the denominator of which is the maximum number of Optional
Units that the Underwriter is entitled to purchase hereunder.
(a)
The Company hereby grants to the Underwriter the right to purchase at their election up to 3,300,000 Optional Units, at the purchase
price per unit set forth in the paragraph above, for the sole purpose of covering sales of units in excess of the number of Firm Units,
provided that the purchase price per Optional Unit shall be reduced by an amount per unit equal to any dividends or distributions declared
by the Company and payable on the Firm Units but not payable on the Optional Units. Any such election to purchase Optional Units may be
exercised only by written notice from you to the Company, given within a period of 45 calendar days after the date of this Agreement,
setting forth the aggregate number of Optional Units to be purchased and the date on which such Optional Units are to be delivered, as
determined by you but in no event earlier than the First Time of Delivery (as defined in Section 4 hereof) or, unless you
and the Company otherwise agree in writing, earlier than two or later than ten business days after the date of such notice.
(b)
In addition to the discount from the public offering price represented by the purchase price set forth in the first sentence of
Section 2 of this Agreement, the Company hereby agrees to pay to the Underwriter a deferred discount of $0.35 per Unit (including
both Firm Units and Optional Units) purchased hereunder (the “Deferred Discount”). The Underwriter hereby agrees that if no
Business Combination is consummated within the time period provided in the Trust Agreement, as amended from time to time, and the funds
held under the Trust Agreement are distributed to the holders of the shares of Common Stock included in the Units sold pursuant to this
Agreement (the “Public Stockholders,” which term shall include any officers or directors of the Company solely to the extent
they hold any Public Shares (as defined below)), (i) the Underwriter will forfeit any rights or claims to the Deferred Discount and (ii)
the trustee under the Trust Agreement is authorized to distribute the Deferred Discount to the Public Stockholders on a pro rata basis.
3.
Upon the authorization by you of the release of the Firm Units, the Underwriter proposes to offer the Firm Units for sale upon
the terms and conditions set forth in the Pricing Prospectus and the Prospectus (the “Offering”).
4. (a) The
Units to be purchased by the Underwriter hereunder, in definitive or book-entry form, and in such authorized denominations and
registered in such names as the Underwriter may request upon at least forty-eight hours’ prior notice to the Company shall be
delivered by or on behalf of the Company to the Underwriter, through the facilities of The Depository Trust Company
(“DTC”), for the account of the Underwriter, against payment by or on behalf of the Underwriter of the purchase price
therefor by wire transfer of Federal (same-day) funds to the account specified by the Company to the Underwriter at least
forty-eight hours in advance. The Company will cause the certificates, if any, representing the Units to be made available for
checking and packaging at least twenty-four hours prior to the Time of Delivery (as defined below) with respect thereto at the
office of DTC or its designated custodian (the “Designated Office”). The time and date of such delivery and payment
shall be, with respect to the Firm Units, 9:30 a.m., New York City time, on December [●], 2021 (the “Closing
Date”) or such other time and date as the Underwriter and the Company may agree upon in writing, and, with respect to the
Optional Units, 9:30 a.m., New York time, on the date specified by the Underwriter in the written notice given by the Underwriter of
its election to purchase such Optional Units, or such other time and date as the Underwriter and the Company may agree upon in
writing. Such time and date for delivery of the Firm Units is herein called the “First Time of Delivery”, such time and
date for delivery of the Optional Units, if not the First Time of Delivery, is herein called the “Second Time of
Delivery”, and each such time and date for delivery is herein called a “Time of Delivery”.
(b)
The documents to be delivered at each Time of Delivery by or on behalf of the parties hereto pursuant to Section 8
hereof, including the cross receipt for the Units and any additional documents requested by the Underwriter pursuant to Section 8(l)
hereof, will be delivered at the offices of Winston & Strawn LLP at 800 Capitol St., Suite 2400, Houston, Texas 77002-2925 (the “Closing
Location”), and the Units will be delivered at the Designated Office, all at such Time of Delivery. A meeting will be held at the
Closing Location at 5:00 p.m., New York City time, on the New York Business Day next preceding such Time of Delivery, at which meeting
the final drafts of the documents to be delivered pursuant to the preceding sentence will be available for review by the parties hereto;
provided, however, that the parties may mutually agree that no “in person” closing shall be required, and deliveries
of documents may be undertaken by electronic means. For the purposes of this Section 4, “New York Business Day”
shall mean each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which banking institutions in New York City are
generally authorized or obligated by law or executive order to close.
5.
The Company agrees with the Underwriter:
(a) To
prepare the Prospectus in a form approved by you and to file such Prospectus pursuant to Rule 424(b) under the Act not later than
the Commission’s close of business on the second business day following the execution and delivery of this Agreement, or, if
applicable, such earlier time as may be required by Rule 430A(a)(3) under the Act; to make no further amendment or any supplement to
the Registration Statement or the Prospectus prior to the last Time of Delivery which shall be disapproved by you promptly after
reasonable notice thereof; to advise you, promptly after it receives notice thereof, of the time when any amendment to the
Registration Statement has been filed or becomes effective or any amendment or supplement to the Prospectus has been filed and to
furnish you with copies thereof; to file promptly all material required to be filed by the Company with the Commission pursuant to
Rule 433(d) under the Act; to advise you, promptly after it receives notice thereof, of the issuance by the Commission of any stop
order or of any order preventing or suspending the use of any Preliminary Prospectus or other prospectus in respect of the Units, of
the suspension of the qualification of the Units for offering or sale in any jurisdiction, of the initiation or threatening of any
proceeding for any such purpose, or of any request by the Commission for the amending or supplementing of the Registration Statement
or the Prospectus or for additional information; and, in the event of the issuance of any stop order or of any order preventing or
suspending the use of any Preliminary Prospectus or other prospectus or suspending any such qualification,
to promptly use its commercially reasonable efforts to obtain the withdrawal of such order.
(b)
Promptly from time to time to take such action as you may reasonably request to qualify the Units for offering and sale under the
securities laws of such jurisdictions as you may request and to comply with such laws so as to permit the continuance of sales and dealings
therein in such jurisdictions for as long as may be necessary to complete the distribution of the Units, provided that in connection therewith
the Company shall not be required to qualify as a foreign corporation (where not otherwise required) or to file a general consent to service
of process in any jurisdiction (where not otherwise required).
(c)
Prior to 10:00 a.m., New York City time, on the New York Business Day next succeeding the date of this Agreement and from time
to time, to furnish the Underwriter with written and electronic copies of the Prospectus in New York City in such quantities as you may
reasonably request, and, if the delivery of a prospectus (or in lieu thereof, the notice referred to in Rule 173(a) under the Act) is
required at any time prior to the expiration of nine months after the time of issue of the Prospectus in connection with the offering
or sale of the Units and if at such time any event shall have occurred as a result of which the Prospectus as then amended or supplemented
would include an untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made when such Prospectus (or in lieu thereof, the notice referred to in Rule
173(a) under the Act) is delivered, not misleading, or, if for any other reason it shall be necessary during such same period to amend
or supplement the Prospectus in order to comply with the Act, to notify you and upon your request to prepare and furnish without charge
to the Underwriter and to any dealer in securities as many written and electronic copies as you may from time to time reasonably request
of an amended Prospectus or a supplement to the Prospectus which will correct such statement or omission or effect such compliance; and
in case the Underwriter is required to deliver a prospectus (or in lieu thereof, the notice referred to in Rule 173(a) under the Act)
in connection with sales of any of the Units at any time nine months or more after the time of issue of the Prospectus, upon your request
but at the expense of the Underwriter, to prepare and deliver to the Underwriter as many written and electronic copies as you may request
of an amended or supplemented Prospectus complying with Section 10(a)(3) of the Act.
(d)
To make generally available to its security holders as soon as practicable, but in any event not later than sixteen months after
the effective date of the Registration Statement (as defined in Rule 158(c) under the Act), an earnings statement of the Company (which
need not be audited) complying with Section 11(a) of the Act and the rules and regulations of the Commission thereunder (including, at
the option of the Company, Rule 158).
(e)
The Company will not, without the prior written consent of the Underwriter, (i) offer, sell, contract to sell, pledge, hedge
or otherwise dispose of (or enter into any transaction that is designed to, or might reasonably be expected to, result in the disposition
(whether by actual disposition or effective economic disposition due to cash settlement or otherwise) by the Company or any affiliate
of the Company or any person in privity with the Company or any affiliate of the Company), directly or indirectly, including the filing
(or participation in the filing) of a registration statement with the Commission in respect of, or establish or increase a put equivalent
position or liquidate or decrease a call equivalent position within the meaning of Section 16 of the Exchange Act with respect to, any
other Units, Common Stock, Warrants or any securities convertible into, or exercisable, or exchangeable for, shares of Common Stock or
publicly announce an intention to effect any such transaction during the period commencing on the date hereof and ending 180 days after
the date of this Agreement; provided, however, that the Company may (A) issue and sell the Private Placement Units, (B) issue
and sell Optional Units (if any) to cover the Underwriter’s over-allotment option, (C) register with the Commission pursuant to
the Registration Rights Agreement, in accordance with the terms of the Registration Rights Agreement, the resale of the securities covered
thereby, and (D) issue securities in connection with a Business Combination, or (ii) release the Sponsor or any officer, director or director
nominee from the 180-day lock-up contained in the Insider Letter; provided that this Section 5(e) shall not apply to
the forfeiture of any Founder Shares pursuant to their terms or any transfer of Founder Shares to any current or future independent director
of the Company (as long as such current or future independent director is subject to the terms of the Insider Letter at the time of such
transfer and as long as, to the extent any reporting obligation under Section 16 of the Exchange Act is triggered as a result of such
transfer, any related filing pursuant to Section 16 of the Exchange Act includes a practical explanation as to the nature of such transfer).
(f)
The Company will not take, directly or indirectly, any action designed to or that would constitute or that might reasonably be
expected to cause or result in, under the Exchange Act or otherwise, stabilization or manipulation of the price of any security of the
Company to facilitate the sale or resale of the Securities.
(g)
To furnish to its stockholders as soon as practicable after the end of each fiscal year an annual report (including a balance sheet
and statements of income, stockholders’ equity and cash flows of the Company and its consolidated subsidiaries (if any) certified
by independent public accountants) and, as soon as practicable after the end of each of the first three quarters of each fiscal year (beginning
with the fiscal quarter ending after the Effective Date ), to make available to its stockholders consolidated summary financial information
of the Company and its subsidiaries (if any) for such quarter in reasonable detail.
(h) During
a period of five years from the Effective Date, or until such earlier time as a Liquidation occurs or the Company is acquired or
completes a going private transaction where the Units and the Common Stock and Warrants included in the Units are no longer
outstanding (as applicable, the “Termination Date”), to furnish to you copies of all reports or other communications
(financial or other) furnished to stockholders, and to deliver to you (i) as soon as they are available, copies of any reports and
financial statements furnished to or filed with the Commission or any national securities exchange on which any class of securities
of the Company is listed; and (ii) such additional information concerning the business and financial condition of the Company as you
may from time to time reasonably request (such financial statements to be on a consolidated basis to the extent the accounts of the
Company and its subsidiaries (if any) are consolidated in reports furnished to its stockholders generally or to the Commission);
provided that any documents filed with the Commission pursuant to the Electronic Data Gathering, Analysis and Retrieval System
(“EDGAR”) shall be deemed to have been furnished or delivered to you pursuant to this paragraph;
(i)
For a period commencing on the Effective Date and ending on the Termination Date, the Company will use its commercially reasonable
efforts to maintain the registration of the Common Stock and Warrants under the Provisions of the Exchange Act. For a period commencing
on the Effective Date and ending upon the consummation of the Business Combination or until such earlier time at which the Liquidation
occurs, the Company will use its commercially reasonable efforts to maintain the registration of the Units (to the extent there are Units
are issued and outstanding), Common Stock and Warrants under the provisions of the Exchange Act, except after giving effect to a going
private transaction after the completion of a Business Combination. The Company will not deregister the Units (to the extent there are
Units are issued and outstanding), Common Stock or Warrants under the Exchange Act (except in connection with a going private transaction
after the completion of a Business Combination) without the prior written consent of the Underwriter.
(j)
To use the net proceeds received by it from the sale of the Units pursuant to this Agreement in the manner specified in the Pricing
Prospectus under the caption “Use of Proceeds”.
(k)
To use its commercially reasonable efforts to list, subject to notice
of issuance, the Units, Common Stock and the Warrants included in the Units on Nasdaq.
(l) On
or prior to the date hereof, to retain its independent registered public accounting firm to audit the balance sheet of the Company
as of the Closing Date (the “Audited Balance Sheet”) reflecting the receipt by the Company of the proceeds of the
Offering on the Closing Date. As soon as the Audited Balance Sheet becomes available, the Company shall promptly, but not later than
four Business Days after the Closing Date, file a Current Report on Form 8-K with the Commission, which Current Report shall contain
the Audited Balance Sheet. Additionally, upon the Company’s receipt of the proceeds from the exercise of all or any portion of
the option provided for in Section 2 hereof, the Company shall promptly, but not later than four New York Business Days
after the receipt of such proceeds, file a Current Report on Form 8-K with the Commission, which report shall disclose the
Company’s sale of the Optional Units and its receipt of the proceeds therefrom, unless the receipt of such proceeds is
reflected in the Audited Balance Sheet included in the Current Report on Form 8-K referenced in the immediately prior
sentence;
(m)
For a period commencing on the Effective Date and ending on the Termination Date, the Company, at its expense, shall cause its
regularly engaged independent registered public accounting firm to review (but not audit) the Company’s financial statements for
each of the first three fiscal quarters prior to the announcement of quarterly financial information, the filing of the Company’s
Quarterly report on Form 10-Q and the mailing, if any, of quarterly financial information to stockholders.
(n)
To file with the Commission such information on Form 10-Q or Form 10-K as may be required by Rule 463 under the Act.
(o)
If the Company elects to rely upon Rule 462(b), the Company shall file a Rule 462(b) Registration Statement with the Commission
in compliance with Rule 462(b) by 10:00 P.M., Washington, D.C. time, on the date of this Agreement, and the Company shall at the time
of filing either pay to the Commission the filing fee for the Rule 462(b) Registration Statement or give irrevocable instructions for
the payment of such fee pursuant to Rule 111(b) under the Act.
(p)
For a period commencing on the Effective Date and ending on the Termination Date, the Company shall retain a transfer agent and
warrant agent; and for a period commencing on the Effective Date and ending on the completion of an initial Business Combination, the
Company shall retain a trustee;
(q)
Upon request of the Underwriter, to furnish, or cause to be furnished, to the Underwriter an electronic version of the Company’s
trademarks, servicemarks and corporate logo, if any, for use on the website, if any, operated by the Underwriter for the purpose of facilitating
the on-line offering of the Units (the “License”); provided, however, that the License shall be used solely for the
purpose described above, is granted without any fee and may not be assigned or transferred.
(r)
To promptly notify you if the Company ceases to be an Emerging Growth Company at any time prior to the later of (i) completion
of the distribution of the Units within the meaning of the Act and (ii) the last Time of Delivery.
(s) The
Company will not consummate an initial Business Combination with any entity that is affiliated with the Sponsor or any of the
Company’s officers or directors unless it or a committee of independent members of the Company’s Board of Directors
obtains an opinion from an independent investment banking firm which is a member of FINRA, or from an independent entity that
commonly renders valuation opinions, that such initial Business Combination is fair to the Company from a financial point of view.
The Company shall not pay the Sponsor or its affiliates or any of the Company’s officers, directors or any of their respective
affiliates any fees or compensation for services rendered to the Company prior to, or in connection with, the consummation of an
initial Business Combination except as disclosed or contemplated in the Registration Statement.
(t)
For a period of 60 days following the Effective Date, in the event any person or entity (regardless of any FINRA affiliation or
association) is engaged to assist the Company in its search for a merger candidate or to provide any other merger and acquisition services,
or has provided or will provide any investment banking, financial, advisory and/or consulting services to the Company, the Company agrees
that it shall promptly provide to FINRA (via a FINRA submission), the Underwriter and its counsel a notification prior to entering into
the agreement or transaction relating to a potential Business Combination: (i) the identity of the person or entity providing any
such services; (ii) complete details of all such services and copies of all agreements governing such services prior to entering into
the agreement or transaction; and (iii) justification as to why the value received by any person or entity for such services is not
underwriting compensation for the Offering. The Company also agrees that proper disclosure of such arrangement or potential arrangement
will be made in the tender offer materials or proxy statement, as applicable, which the Company may file in connection with the Business
Combination for purposes of offering redemption of shares held by its stockholders or for soliciting stockholder approval, as applicable.
(u)
The Company shall advise FINRA, the Underwriter and its counsel if it is aware that any 10% or greater stockholder of the Company
becomes an affiliate or associated person of a Member participating in the distribution of the Units.
(v)
The Company shall cause the proceeds of the Offering and the sale of the Private Placement Units to be held in the Trust Account
to be invested only in United States government treasury bills with a maturity of 185 days or less or in money market funds investing
solely in U.S. Treasuries and meeting certain conditions under Rule 2a-7 under the Investment Company Act as set forth in the Trust Agreement
and disclosed in the Pricing Prospectus and the Prospectus. The Company will otherwise conduct its business in a manner so that it will
not become subject to the Investment Company Act. Furthermore, once the Company consummates an initial Business Combination, it will not
be required to register as an investment company under the Investment Company Act.
(w) During
the period prior to the Company’s initial Business Combination or the Liquidation, the Company may instruct the trustee under
the Trust Agreement to release from the Trust Account, (i) solely from the interest income earned on the funds held in the Trust
Account, the amounts necessary to pay franchise and income tax obligations, if any, and (ii) to pay stockholders who properly redeem
their public shares in connection with a stockholder vote to amend the Amended and Restated Certificate of Incorporation (A) to
modify the substance or timing of the Company’s obligation to redeem 100% of the public shares if the Company has not
consummated an initial Business Combination within 18 months from the completion of the Offering, or 21 months from the closing of
the Offering if we have executed a letter of intent, agreement in principle or definitive agreement for an initial Business
Combination within 18 months from the closing of the Offering, as described in the Company’s Amended and Restated Certificate
of Incorporation) from the closing of the offering (or later if the Public Stockholders approve an amendment to the Amended and
Restated Certificate of Incorporation extending such deadline) or (B) with respect to any other material provisions relating to
stockholders’ rights. Otherwise, all funds held in the Trust Account (including any interest income earned on the amounts held
in the Trust Account (net of taxes payable thereon in accordance with the preceding sentence)) will remain in the Trust Account
until the earlier of the consummation of the Company’s initial Business Combination and the Liquidation; provided, however,
that in the event of the Liquidation, up to $100,000 of interest income may be released to the Company if the proceeds of the
Offering held outside of the Trust Account are not sufficient to cover the costs and expenses associated with implementing the
Company’s plan of dissolution.
(x)
The Company will reserve and keep available that maximum number of its authorized but unissued securities that are issuable upon
the exercise of any of the Warrants and the warrants included in the Private Placement Units and any Working Capital Units outstanding
from time to time and the conversion of the Founder Shares.
(y)
Prior to the consummation of an initial Business Combination or the Liquidation, the Company shall not issue additional securities
that would entitle the holders thereof to (i) receive funds from the Trust Account or (ii) vote as a class with the Public Shares (A)
on the Company’s initial Business Combination or on any other proposal presented to stockholders prior to or in connection with
the completion of an initial Business Combination or (B) to approve an amendment to the Amended and Restated Certificate of Incorporation
to (1) extend the time Closing Date or (2) amend the foregoing provisions.
(z)
Prior to the earlier of the consummation of an initial Business Combination and the Liquidation, the Company’s audit committee
will review on a quarterly basis all payments made by the Company to the Sponsor, to the Company’s officers or directors, or to
the Company’s or any of such other persons’ respective affiliates.
(aa)
The Company agrees that it will use commercially reasonable efforts
to prevent the Company from becoming subject to Rule 419 under the Act prior to the consummation of any Business Combination, including,
but not limited to, using its commercially reasonable efforts to prevent any of the Company’s outstanding securities from being
deemed to be a “penny stock” as defined in Rule 3a51-1 under the Exchange Act during such period.
(bb) To
the extent required by Rule 13a-15(e) under the Exchange Act, the Company will maintain “disclosure controls and
procedures” (as defined under Rule 13a-15(e) under the Exchange Act) and a system of internal accounting controls sufficient
to provide reasonable assurances that (i) transactions are executed in accordance with management’s general or specific
authorization, (ii) transactions are recorded as necessary in order to permit preparation of financial statements in accordance with
GAAP and to maintain accountability for assets, (iii) access to assets is permitted only in accordance with management’s
general or specific authorization, and (iv) the recorded accountability for assets is compared with existing assets at reasonable
intervals and appropriate action is taken with respect to any differences.
(cc)
The Company shall not take any action or omit to take any action that would cause the Company to be in breach or violation of its
Amended and Restated Certificate of Incorporation.
(dd)
The Company will seek to have all vendors, service providers (other than independent accountants), prospective target businesses,
lenders or other entities with which it does business enter into agreements waiving any right, title, interest or claim of any kind in
or to any monies held in the Trust Account for the benefit of the Public Stockholders. The Company may forego obtaining such waivers only
if the Company shall have received the approval of its Chief Executive Officer.
(ee) The
Company may consummate the initial Business Combination and conduct redemptions of shares of Common Stock for cash upon consummation
of such Business Combination without a stockholder vote pursuant to Rule 13e-4 and Regulation 14E under the Exchange Act, including
the filing of tender offer documents with the Commission. Such tender offer documents will contain substantially the same financial
and other information about the initial Business Combination and the redemption rights as is required under the Commission’s
proxy rules and will provide each stockholder of the Company with the opportunity prior to the consummation of the initial Business
Combination to redeem the Common Stock held by such stockholder for an amount (the “Redemption Price”) of cash equal to
(i) the aggregate amount then on deposit in the Trust Account as of two business days prior to the consummation of the initial
Business Combination, representing (A) the proceeds held in the Trust Account from the Offering and the sale of the Private
Placement Units and (B) any interest income earned on the funds held in the Trust Account not previously released to pay franchise
and income taxes, divided by (ii) the total number of shares of Common Stock sold as part of the Units in the Offering (the
“Public Shares”) then outstanding, subject to the limitation that no redemptions will take place if all of the
redemptions would cause the Company’s net tangible assets to be less than $5,000,001. If, however, a stockholder vote is
required by law or stock exchange listing requirement in connection with the initial Business Combination or the Company decides to
hold a stockholder vote for business or other legal reasons, the Company will submit such Business Combination to the
Company’s stockholders for their approval (“Business Combination Vote”). With respect to the initial Business
Combination Vote, if any, the Sponsor, officers and directors have agreed to vote all of their Founder Shares and any other shares
of Common Stock purchased during or after the Offering in favor of the Company’s initial Business Combination. If the Company
seeks stockholder approval of the initial Business Combination, the Company will offer to each Public Stockholder holding shares of
Common Stock the right to have its shares redeemed in conjunction with a proxy solicitation pursuant to the proxy rules of the
Commission at a per share redemption price equal to the Redemption Price. If the Company seeks stockholder approval of the initial
Business Combination, the Company may proceed with such Business Combination only if a majority of the outstanding shares of Common
Stock voted by the stockholders at a duly held stockholders meeting are voted to approve such Business Combination. A quorum for
such meeting will consist of the holders present in person or by proxy of outstanding shares of Common Stock of the Company
representing one-half of the voting power of all outstanding shares of Common Stock of the Company entitled to vote at such meeting.
If, after seeking and receiving such stockholder approval, the Company elects to so proceed, it will redeem shares, at the
Redemption Price, from those Public Stockholders who validly and affirmatively requested (and did not validly withdraw) such
redemption. Only Public Stockholders holding shares of Common Stock who properly exercise their redemption rights, in accordance
with the applicable tender offer or proxy materials related to such Business Combination and the Amended and Restated Certificate of
Incorporation, shall be entitled to receive distributions from the Trust Account in connection with an initial Business Combination,
and the Company shall pay no distributions with respect to any other holders of shares of the Company in connection therewith. In
the event that the Company does not effect a Business Combination by 18 months from the completion of the Offering, or 21 months
from the closing of the Offering if we have executed a letter of intent, agreement in principle or definitive agreement for an
initial Business Combination within 18 months from the closing of the Offering, the Company will (A) cease all operations except for
the purpose of winding up, (B) as promptly as reasonably possible but not more than ten (10) business days thereafter, redeem 100%
of the Public Shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account
(including interest not previously released to the Company to pay franchise and income taxes, and less up to $100,000 of interest to
pay dissolution expenses), divided by the number of then outstanding Public Shares, which redemption will completely extinguish
Public Stockholders’ rights as stockholders (including the right to receive further liquidation distributions, if any),
subject to applicable law, and (C) as promptly as reasonably possible following such redemption, subject to the approval of the
Company’s remaining stockholders and the Company’s board of directors, dissolve and liquidate, subject in each case to
the Company’s obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law.
Only Public Stockholders holding shares of Common Stock included in the Units shall be entitled to receive such redemption amounts
and the Company shall pay no such redemption amounts or any distributions in liquidation with respect to any other shares of the
Company. The Sponsor and the Company’s officers and directors have agreed that they will not propose any amendment to the
Amended and Restated Certificate of Incorporation that would affect the substance or timing of the Company’s obligation to
redeem 100% of the outstanding Public Shares if the Company has not consummated a Business Combination within 18 months from the
completion of the Offering, or 21 months from the closing of the Offering if we have executed a letter of intent, agreement in
principle or definitive agreement for an initial Business Combination within 18 months from the closing of the Offering, as
described in the Company’s Amended and Restated Certificate of Incorporation) from the closing of the offering (or later if
the Public Stockholders approve an amendment to the Amended and Restated Certificate of Incorporation extending such deadline) or
with respect to any other material provisions relating to stockholders’ rights or pre-initial Business Combination activity,
unless the Company offers to redeem the Public Shares in connection with such amendment, as described in the Pricing Prospectus and
Prospectus.
(ff)
In the event that the Company desires or is required by an applicable law or regulation to cause an announcement (a “Business
Combination Announcement”) to be placed in The Wall Street Journal, The New York Times or any other news or media publication or
outlet or to be made via a public filing with the Commission announcing the consummation of an initial Business Combination that indicates
that the Underwriter was the underwriter in the Offering, the Company shall supply the Underwriter with a draft of the Business Combination
Announcement and provide the Underwriter with a reasonable advance opportunity to comment thereon, subject to the agreement of the Underwriter
to keep confidential such draft announcement in accordance with the Underwriter’s standard policies regarding confidential information.
(gg)
Upon the consummation of the initial Business Combination, the Company will direct the trustee under the Trust Agreement to pay
the Underwriter the Deferred Discount out of the proceeds of the Offering held in the Trust Account. The Underwriter shall have no claim
to payment of any interest earned on the portion of the proceeds held in the Trust Account representing the Deferred Discount. If the
Company fails to consummate its initial Business Combination within 18 months from the completion of the Offering, or 21 months from the
closing of the Offering if we have executed a letter of intent, agreement in principle or definitive agreement for an initial Business
Combination within 18 months from the closing of the Offering, as described in the Company’s Amended and Restated Certificate of
Incorporation) from the closing of the offering (or later if the Public Stockholders approve an amendment to the Amended and Restated
Certificate of Incorporation extending such deadline), the Deferred Discount will not be paid to the Underwriter and will, instead, be
included in the distribution of the proceeds held in the Trust Account made to the Public Stockholders upon the Liquidation. In connection
with any such Liquidation, the Underwriter forfeits any rights or claims to the Deferred Discount.
(hh)
If at any time following the distribution of any Written Testing-the-Waters Communication, there occurred or occurs an event or
development as a result of which such Written Testing-the-Waters Communication included or would include any untrue statement of a material
fact or omitted or would omit to state any material fact necessary to make the statements therein in light of the circumstances under
which they were made at such time, not misleading, the Company will promptly (i) notify the Underwriter so that use of the Written Testing-the-Waters
Communication may cease until it is amended or supplemented; (ii) amend or supplement, at its own expense, such Written Testing-the-Waters
Communication to eliminate or correct such untrue statement or omission; and (iii) supply any amendment or supplement to the Underwriter
in such quantities as may be reasonably requested.
(ii) The
Company will promptly notify the Underwriter if the Company ceases to be an Emerging Growth Company at any time prior to the later
of (i) completion of the distribution of the Units within the meaning of the Act and (ii) completion of the 180-day restricted
period referred to in Section 5 hereof.
(jj)
Upon the earlier to occur of the expiration or termination of the Underwriter’s option to purchase additional units, the
Company shall cancel or otherwise effect the forfeiture of Founder Shares from the Sponsor in an aggregate amount equal to the number
of Founder Shares determined by multiplying (a) 1,133,333 by (b) a fraction, (i) the numerator of which is 3,300,000 minus the number
of Optional Units purchased by the Underwriter upon the exercise of their option to purchase additional units, and (ii) the denominator
of which is 3,300,000. For the avoidance of doubt, if the Underwriter exercises their option to purchase additional units in full, the
Company shall not cancel or otherwise affect the forfeiture of the Founder Shares pursuant to this subsection.
6.
(a) The Company represents and agrees that it has not made or used and will not make or use any offer relating to the Units
that would constitute an Issuer Free Writing Prospectus;
(b)
The Company represents that it has satisfied and agrees that it will satisfy the conditions under Rule 433 under the Act to avoid
a requirement to file with the Commission any electronic road show;
(c)
Promptly from time to time to take such action as you may reasonably request to qualify the Units for offering and sale under the
securities laws of such jurisdictions as you may request and to comply with such laws so as to permit the continuance of sales and dealings
therein in such jurisdictions for as long as may be necessary to complete the distribution of the Units; provided that in connection therewith
the Company shall not be required to qualify as a foreign corporation (where not otherwise required) or to file a general consent to service
of process in any jurisdiction (where not otherwise required).
(d)
The Company agrees that if at any time following issuance of a Written Testing-the-Waters Communication any event occurred or occurs
as a result of which such Written Testing-the-Waters Communication would conflict with the information in the Registration Statement,
the Pricing Prospectus or the Prospectus or would include an untrue statement of a material fact or omit to state any material fact necessary
in order to make the statements therein, in the light of the circumstances then prevailing, not misleading, the Company will give prompt
notice thereof to the Underwriter and, if requested by the Underwriter, will prepare and furnish without charge to the Underwriter a Written
Testing-the-Waters Communication or other document which will correct such conflict, statement or omission.
(e) The
Company represents and agrees that (i) it has not engaged in, or authorized any other person to engage in, any Testing-the-Waters
Communications, other than Testing-the-Waters Communications with the prior consent of the Underwriter with entities that the
Company reasonably believes are qualified institutional buyers as defined in Rule 144A under the Act or institutions that are
accredited investors as defined in Rule 501(a) under the Act; and (ii) it has not distributed, or authorized any other person to
distribute, any Written Testing-the-Waters Communications, other than those distributed with the prior consent of the Underwriter;
and the Company reconfirms that the Underwriter has been authorized to act on its behalf in engaging in Written Testing-the-Waters
Communications.
(f)
The Underwriter represents and agrees that any Testing-the-Waters Communications undertaken by it were with entities that such
Underwriter reasonably believes are qualified institutional buyers as defined in Rule 144A under the Act or institutions that are accredited
investors as defined in Rule 501(a) under the Act.
7.
The Company covenants and agrees with the Underwriter that the Company will pay or cause to be paid the following: (i) the fees,
disbursements and expenses of the Company’s counsel and accountants in connection with the registration of the Units under the Act
and all other expenses in connection with the preparation, printing, reproduction and filing of the Registration Statement, any Preliminary
Prospectus, any Written Testing-the-Waters Communication and the Prospectus and amendments and supplements thereto and the mailing and
delivering of copies thereof to the Underwriter and dealers; (ii) the cost of printing or producing this Agreement, the Blue Sky Memorandum,
closing documents (including any compilations thereof) and any other documents in connection with the offering, purchase, sale and delivery
of the Units; (iii) all expenses in connection with the qualification of the Units for offering and sale under state securities laws as
provided in Section 5(b) hereof, including the fees and disbursements of counsel for the Underwriter in connection with such
qualification and in connection with the Blue Sky survey (iv) all fees and expenses in connection with listing the Units and the Common
Stock and Warrants included in the Units on Nasdaq; (v) the filing fees incident to, and the fees and disbursements of counsel for the
Underwriter (not to exceed $25,000 in the aggregate) in connection with, any required review by FINRA of the terms of the sale of the
Units; (vi) the cost of preparing share certificates; (vii) the cost and charges of any trustee, warrant agent, transfer agent or registrar;
and (viii) all other costs and expenses incident to the performance of its obligations hereunder which are not otherwise specifically
provided for in this Section 7. It is understood, however, that, except as provided in this Section 7, and Sections 9
and 12 hereof, the Underwriter will pay all of its own costs and expenses, including the fees of their counsel.
8.
The obligations of the Underwriter hereunder, as to the Units to be delivered at each Time of Delivery, shall be subject, in its
discretion, to the condition that all representations and warranties and other statements of the Company herein are, at and as of the
Applicable Time and such Time of Delivery, true and correct, the condition that the Company shall have performed all of its obligations
hereunder theretofore to be performed, and the following additional conditions:
(a)
The Prospectus shall have been filed with the Commission pursuant to Rule 424(b) under the Act within the applicable time period
prescribed for such filing by the rules and regulations under the Act and in accordance with Section 5(a) hereof; all material
required to be filed by the Company pursuant to Rule 433(d) under the Act shall have been filed with the Commission within the applicable
time period prescribed for such filing by Rule 433; if the Company has elected to rely upon Rule 462(b) under the Act, the Rule 462(b)
Registration Statement shall have become effective by 10:00 P.M., Washington, D.C. time, on the date of this Agreement; no stop order
suspending the effectiveness of the Registration Statement or any part thereof shall have been issued and no proceeding for that purpose
shall have been initiated or threatened by the Commission; no stop order suspending or preventing the use of the Pricing Prospectus or
Prospectus shall have been initiated or threatened by the Commission; and all requests for additional information on the part of the Commission
shall have been complied with to your reasonable satisfaction;
(b)
Winston & Strawn LLP, counsel for the Underwriter, shall have furnished to you such written opinion or opinions and negative
assurance letter in form and substance reasonably acceptable to the Underwriter, dated such Time of Delivery, and such counsel shall have
received such papers and information as they may reasonably request to enable them to pass upon such matters;
(c)
Reed Smith LLP, counsel for the Company, shall have furnished to you their written opinion, dated such Time of Delivery, in form
and substance satisfactory to the Underwriter;
(d)
On the date of the Prospectus at a time prior to the execution of this Agreement, at 9:30 a.m., New York City time, on the Effective
Date of any post-effective amendment to the Registration Statement filed subsequent to the date of this Agreement and also at each Time
of Delivery, Marcum shall have furnished to you a letter or letters, dated the respective dates of delivery thereof, in form and substance
satisfactory to the Underwriter;
(e)
On the Effective Date of the Registration Statement, the Company shall have delivered to the Underwriter executed copies of the
Trust Agreement, the Warrant Agreement, the Founder’s Subscription Agreement, the Placement Unit Purchase Agreement, the Insider
Letter, the Registration Rights Agreement and the Services Agreement;
(f) (i)
The Company shall not have sustained since the date of the latest audited financial statements included in the Pricing Prospectus
any loss or interference with its business from fire, explosion, flood or other calamity, whether or not covered by insurance, or
from any labor dispute or court or governmental action, order or decree, other than as set forth or contemplated in the Pricing
Prospectus, and (ii) since the respective dates as of which information is given in the Pricing Prospectus there shall not have been
any change in the shares or long-term debt of the Company or any change or effect, or any development involving a prospective change
or effect, in or affecting (A) the business, properties, general affairs, management, financial position, stockholders’ equity
or results of operations of the Company, except as set forth or contemplated in the Pricing Prospectus and the Prospectus, or (B)
the ability of the Company to perform its obligations under this Agreement, including the issuance and sale of the Units, or to
consummate the transactions contemplated in the Pricing Prospectus and the Prospectus, the effect of which, in any such case
described in clause (1) or (2), is in your judgment so material and adverse as to make it impracticable or inadvisable to
proceed with the public offering or the delivery of the Units being delivered at such Time of Delivery on the terms and in the
manner contemplated in the Pricing Prospectus and the Prospectus;
(g)
On or after the Applicable Time (i) no downgrading shall have occurred in the rating accorded the Company’s debt securities
or preference shares by any “nationally recognized statistical rating organization”, as that term is defined by the Commission
for purposes of Rule 436(g)(2) under the Act, and (ii) no such organization shall have publicly announced that it has under surveillance
or review, with possible negative implications, its rating of any of the Company’s debt securities or preference shares;
(h)
Since the date of the most recent financial statements included in the Prospectus, there has been no Material Adverse Effect, except
as set forth in the Prospectus;
(i)
On or after the Applicable Time there shall not have occurred any of the following: (i) a suspension or material limitation in
trading in securities generally on the NYSE or the Nasdaq Stock Market; (ii) a suspension or material limitation in trading in the Company’s
securities on Nasdaq; (iii) a general moratorium on commercial banking activities declared by either Federal or New York State authorities
or a material disruption in commercial banking or securities settlement or clearance services in the United States; (iv) the outbreak
or escalation of hostilities involving the United States or the declaration by the United States of a national emergency or war or (A)
the occurrence of any other calamity or crisis or any change in financial, political or economic conditions in the United States or elsewhere,
if the effect of any such event specified in clause (iv) or (B) in your judgment makes it impracticable or inadvisable to proceed
with the public offering or the delivery of the Units being delivered at such Time of Delivery on the terms and in the manner contemplated
in the Pricing Prospectus and the Prospectus;
(j)
The Units to be sold at such Time of Delivery shall have been duly listed, subject to notice of issuance, on Nasdaq;
(k)
The Company shall have complied with the provisions of Section 5(c) hereof with respect to the furnishing of prospectuses
on the New York business day next succeeding the date of this Agreement; and
(l) The
Company shall have furnished or caused to be furnished to you at such Time of Delivery certificates of officers of the Company
satisfactory to the Underwriter as to the accuracy of the representations and warranties of the Company herein at and as of such
Time of Delivery, as to the performance by the Company of all of its obligations hereunder to be performed at or prior to such Time
of Delivery, as to the matters set forth in subsections (a) and (g) of this Section and as to such other matters as you may
reasonably request.
9.
(a) The Company will indemnify and hold harmless the Underwriter against any losses, claims, damages or liabilities, joint or
several, to which the Underwriter may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities
(or actions in respect thereof) arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained
in the Registration Statement, any Preliminary Prospectus, the Pricing Prospectus or the Prospectus, or any amendment or supplement thereto,
any “roadshow” as defined in Rule 433(h) under the Act (a “roadshow”), any “issuer information” filed
or required to be filed pursuant to Rule 433(d) under the Act or any Testing-the-Waters Communication, or arise out of or are based upon
the omission or alleged omission to state therein a material fact required to be stated therein or necessary in order to make the statements
therein not misleading, and will reimburse the Underwriter for any legal or other expenses reasonably incurred by the Underwriter in connection
with investigating or defending any such action or claim as such expenses are incurred; provided, however, that the Company
shall not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue
statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any Preliminary Prospectus,
the Pricing Prospectus or the Prospectus, or any amendment or supplement thereto, or any Written Testing-the-Waters Communication, in
reliance upon and in conformity with the Underwriter Information.
(b) The
Underwriter will indemnify and hold harmless the Company against any losses, claims, damages or liabilities to which the Company may
become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof)
arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in the Registration
Statement, any Preliminary Prospectus, the Pricing Prospectus or the Prospectus, or any amendment or supplement thereto, or any
roadshow or any Written Testing-the-Waters Communication, or arise out of or are based upon the omission or alleged omission to
state therein a material fact required to be stated therein or necessary in order to make the statements therein not misleading, in
each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged
omission was made in the Registration Statement, any Preliminary Prospectus, the Pricing Prospectus or the Prospectus, or any
amendment or supplement thereto, or any roadshow or any Written Testing-the-Waters Communication, in reliance upon and in conformity
with the Underwriter Information; and will reimburse the Company for any legal or other expenses reasonably incurred by the Company
in connection with investigating or defending any such action or claim as such expenses are incurred. As used in this Agreement with
respect to the Underwriter and an applicable document, “Underwriter Information” shall mean the written information
furnished to the Company by the Underwriter expressly for use therein; it being understood and agreed upon that the only such
information furnished by the Underwriter consists of the following information in the Prospectus furnished on behalf of the
Underwriter: the information contained in the sixteenth and seventeenth paragraphs under the caption “Underwriting”
concerning the purchase and sale of Units in the open market and other stabilizing transactions by the Underwriter.
(c)
Promptly after receipt by an indemnified party under subsection (a) or (b) above of notice of the commencement of any action,
such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify
the indemnifying party in writing of the commencement thereof; provided that the failure to notify the indemnifying party shall not relieve
it from any liability that it may have under the preceding paragraphs of this Section 9 except to the extent that it has been
materially prejudiced (through the forfeiture of substantive rights or defenses) by such failure; and provided further that the failure
to notify the indemnifying party shall not relieve it from any liability that it may have to an indemnified party other than under the
preceding paragraphs of this Section 9. In case any such action shall be brought against any indemnified party and it shall
notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the
extent that it shall wish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel satisfactory
to such indemnified party (who shall not, except with the consent of the indemnified party, be counsel to the indemnifying party), and,
after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying
party shall not be liable to such indemnified party under such subsection for any legal expenses of other counsel or any other expenses,
in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation.
No indemnifying party shall, without the written consent of the indemnified party, effect the settlement or compromise of, or consent
to the entry of any judgment with respect to, any pending or threatened action or claim in respect of which indemnification or contribution
may be sought hereunder (whether or not the indemnified party is an actual or potential party to such action or claim) unless such settlement,
compromise or judgment (i) includes an unconditional release of the indemnified party from all liability arising out of such action or
claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act, by or on behalf of any indemnified
party.
(d) If
the indemnification provided for in this Section 9 is unavailable to or insufficient to hold harmless an indemnified
party under subsection (a) or (b) above in respect of any losses, claims, damages or liabilities (or actions in respect
thereof) referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party
as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to
reflect the relative benefits received by the Company on the one hand and the Underwriter on the other from the offering of the
Units. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law, then each
indemnifying party shall contribute to such amount paid or payable by such indemnified party in such proportion as is appropriate to
reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Underwriter on the other
in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect
thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and
the Underwriter on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before
deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriter, in
each case as set forth in the table on the cover page of the Prospectus. The relative fault shall be determined by reference to,
among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a
material fact relates to information supplied by the Company on the one hand or the Underwriter on the other and the parties’
relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and
the Underwriter agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined
by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations
referred to above in this subsection (d). The amount paid or payable by an indemnified party as a result of the losses, claims,
damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any
legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action
or claim. Notwithstanding the provisions of this subsection (d), the Underwriter shall not be required to contribute any amount
in excess of the amount by which the total price at which the Units underwritten by it and distributed to the public were offered to
the public exceeds the amount of any damages which the Underwriter has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation.
(e)
The obligations of the Company under this Section 9 shall be in addition to any liability which the Company may otherwise
have and shall extend, upon the same terms and conditions, to each employee, officer and director of the Underwriter and each person,
if any, who controls the Underwriter within the meaning of the Act and each broker-dealer or other affiliate of the Underwriter; and the
obligations of the Underwriter under this Section 9 shall be in addition to any liability which the Underwriter may otherwise
have and shall extend, upon the same terms and conditions, to each officer and director of the Company including any person who, with
his or her consent, is named in the Registration Statement as about to become a director of the Company and to each person, if any, who
controls the Company within the meaning of the Act.
10.
[Reserved].
11. The
respective indemnities, agreements, representations, warranties and other statements of the Company and the Underwriter, as set
forth in this Agreement or made by or on behalf of them, respectively, pursuant to this Agreement, shall remain in full force and
effect, regardless of any investigation (or any statement as to the results thereof) made by or on behalf of any Underwriter or any
controlling person of the Underwriter, or the Company, or any officer or director or controlling person of the Company, and shall
survive delivery of and payment for the Units.
12.
[Reserved].
13.
In all dealings hereunder, the Underwriter and the parties hereto shall be entitled to act and rely upon any statement, request,
notice or agreement on behalf of the Underwriter made or given by you jointly or by Goldman Sachs & Co. LLC on behalf of you as the
Underwriter.
All statements, requests,
notices and agreements hereunder shall be in writing, and if to the Underwriter shall be delivered or sent by mail, telex or facsimile
transmission to you as the representative in care of Goldman Sachs & Co. LLC, 200 West Street, New York, New York 10282-2198, Attention:
Registration Department; and if to the Company shall be delivered or sent by mail, telex or facsimile transmission to the address of the
Company set forth in the Registration Statement, Attention: Chief Financial Officer; provided, however, that any notice to the
Underwriter pursuant to Section 9(c) hereof shall be delivered or sent by mail, telex or facsimile transmission to such Underwriter
at its address set forth in the Underwriter’s Questionnaire, or telex constituting such Questionnaire, which address will be supplied
to the Company by you upon request; provided, however, that notices under subsection 5(e) shall be in writing, and
if to the Underwriter shall be delivered or sent by mail, telex or facsimile transmission to you as the representatives at Goldman Sachs
& Co. LLC, 200 West Street, New York, New York 10282-2198, Attention: Control Room; and if to the other parties to a lock-up letter
to the address provided therein. Any such statements, requests, notices or agreements shall take effect upon receipt thereof.
In accordance with the requirements
of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)), the Underwriter is required to obtain, verify
and record information that identifies its clients, including the Company, which information may include the name and address of its clients,
as well as other information that will allow the Underwriter to properly identify its clients.
14.
This Agreement shall be binding upon, and inure solely to the benefit of, the Underwriter, the Company and, to the extent provided
in Sections 9 and 11 hereof, the officers and directors of the Company and each person who controls the Company or
the Underwriter, and their respective heirs, executors, administrators, successors and assigns, and no other person shall acquire or have
any right under or by virtue of this Agreement. No purchaser of any of the Units from the Underwriter shall be deemed a successor or assign
by reason merely of such purchase.
15.
Time shall be of the essence of this Agreement. As used herein, the term “business day” shall mean any day when the
Commission’s office in Washington, D.C. is open for business.
16.
The Company acknowledges and agrees that (i) the purchase and sale of the Units pursuant to this Agreement is an arm’s-length
commercial transaction between the Company, on the one hand, and the Underwriter, on the other, (ii) in connection therewith and with
the process leading to such transaction the Underwriter is acting solely as a principal and not the agent or fiduciary of the Company,
(iii) the Underwriter has not assumed an advisory or fiduciary responsibility in favor of the Company with respect to the offering contemplated
hereby or the process leading thereto (irrespective of whether the Underwriter has advised or is currently advising the Company on other
matters) or any other obligation to the Company except the obligations expressly set forth in this Agreement and (iv) the Company has
consulted its own legal and financial advisors to the extent it deemed appropriate. The Company agrees that it will not claim that the
Underwriter has rendered advisory services of any nature or respect, or owes a fiduciary or similar duty to the Company, in connection
with such transaction or the process leading thereto.
17.
This Agreement supersedes all prior agreements and understandings (whether written or oral) between the Company and the Underwriter
with respect to the subject matter hereof.
18.
This Agreement and any transaction contemplated by this Agreement and any claim, controversy or dispute arising under or related
thereto shall be governed by and construed in accordance with the laws of the State of New York without regard to principles of conflict
of laws that would results in the application of any other law than the laws of the State of New York. The Company and the Underwriter
agrees that any suit or proceeding arising in respect of this Agreement or any transaction contemplated by this Agreement will be tried
exclusively in the U.S. District Court for the Southern District of New York or, if that court does not have subject matter jurisdiction,
in any state court located in The City and County of New York and the Company agrees to submit to the jurisdiction of, and to venue in,
such courts.
19.
The Company and the Underwriter hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right
to trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby.
20. This
Agreement may be executed by any one or more of the parties hereto in any number of counterparts, each of which shall be deemed to
be an original, but all such counterparts shall together constitute one and the same instrument. Delivery of this Agreement by one
party to the other may be made by facsimile, electronic mail (including any electronic signature complying with the New York
Electronic Signatures and Records Act (N.Y. State Tech. §§ 301-309), as amended from time to time, or other
applicable law) or other transmission method, and the parties hereto agree that any counterpart so delivered shall be deemed to have
been duly and validly delivered and be valid and effective for all purposes.
21.
Notwithstanding anything herein to the contrary, the Company is authorized to disclose to any persons the U.S. federal and state
income tax treatment and tax structure of the potential transaction and all materials of any kind (including tax opinions and other tax
analyses) provided to the Company relating to that treatment and structure, without the Underwriter imposing any limitation of any kind.
However, any information relating to the tax treatment and tax structure shall remain confidential (and the foregoing sentence shall not
apply) to the extent necessary to enable any person to comply with securities laws. For this purpose, “tax structure” is limited
to any facts that may be relevant to that treatment.
22.
Recognition of the U.S. Special Resolution Regimes.
(a)
In the event that the Underwriter that is a Covered Entity becomes subject to a proceeding under a U.S. Special Resolution Regime,
the transfer from the Underwriter of this Agreement, and any interest and obligation in or under this Agreement, will be effective to
the same extent as the transfer would be effective under the U.S. Special Resolution Regime if this Agreement, and any such interest and
obligation, were governed by the laws of the United States or a state of the United States.
(b)
In the event that the Underwriter that is a Covered Entity or a BHC Act Affiliate of the Underwriter becomes subject to a proceeding
under a U.S. Special Resolution Regime, Default Rights under this Agreement that may be exercised against the Underwriter are permitted
to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if this Agreement
were governed by the laws of the United States or a state of the United States.
(c)
As used in this section:
“BHC Act Affiliate”
has the meaning assigned to the term “affiliate” in, and shall be interpreted in accordance with, 12 U.S.C. § 1841(k).
“Covered Entity”
means any of the following:
(i)
a “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b);
(ii)
a “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or
(iii)
a “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).
“Default Right”
has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as
applicable.
“U.S. Special Resolution
Regime” means each of (i) the Federal Deposit Insurance Act and the regulations promulgated thereunder and (ii) Title II of the
Dodd-Frank Wall Street Reform and Consumer Protection Act and the regulations promulgated thereunder.
[Signature page follows.]
If the foregoing is in accordance
with your understanding, please sign and return to us one for the Company and the Underwriter plus one for each counsel counterparts hereof,
and upon the acceptance hereof by you, on behalf of the Underwriter, this letter and such acceptance hereof shall constitute a binding
agreement between the Underwriter and the Company.
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Very
truly yours,
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FTAC
EMERALD ACQUISITION CORP.
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By:
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Name:
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Bracebridge
H. Young, Jr.
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Title:
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Chief
Executive Officer
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Accepted
as of the date hereof:
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GOLDMAN
SACHS & CO. LLC
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By:
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Name:
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Title:
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[Signature Page to Underwriting Agreement]
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SCHEDULE I
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Underwriter
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Total Number of
Firm Units
to be
Purchased
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Number of
Optional
Units to be
Purchased if
Maximum
Option
Exercised
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Goldman Sachs & Co. LLC
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22,000,000
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3,300,000
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Total
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22,000,000
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3,300,000
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SCHEDULE II
(a)
Issuer Free Writing Prospectuses not included in the Pricing Disclosure Package:
None
(b)
Additional Documents Incorporated by Reference:
None
(c)
Information other than the Pricing Prospectus that comprise the Pricing Disclosure Package:
The initial public offering
price per unit for the Units is $10.00.
The number of Units purchased
by the Underwriter is 22,000,000.
(d)
Written Testing-the-Waters Communication:
Reference is made to the materials
in the testing the waters presentation made to potential investors by the Company, to the extent such materials are deemed to be a “written
communication” within the meaning of Rule 405 under the Act.
Exhibit 3.1(a)
AMENDED AND RESTATED CERTIFICATE OF INCORPORATION
OF
EMERALD ESG ACQUISITION CORP.
May 6, 2021
THIS AMENDED AND
RESTATED CERTIFICATE OF INCORPORATION OF EMERALD ESG ACQUISITION CORP. (the "Corporation") is made and entered into and
shall be effective as of May 6, 2021, by and between the undersigned, and shall amend and restate in its entirety the Certificate of Incorporation
of the Corporation executed as ofFebruary 19, 2021.
The Corporation
was formed and organized under the provisions of and subject to the requirements of the General Corporation Law of the State of Delaware,
as amended from time to time (the "DGCL"). The Corporation and the board of directors of the Corporation (the "Board"),
for the purposes of further organizing the Corporation, hereby certify as follows:
ARTICLE I
NAME
The name of the corporation is Emerald ESG Acquisition Corp.
ARTICLE II
REGISTERED AGENT
The
address of the Corporation's registered office in the State of Delaware is Rodney Square, 1000 North King Street, in the City of
Wilmington, County of New Castle, State of Delaware, 19801, and the name of the Corporation's registered agent at such address is
Corporation Guarantee and Trust Company.
ARTICLE III
PURPOSE
The
nature of the business or purposes to be conducted or promoted by the Corporation is to engage in any lawful act or activity for
which corporations may be organized under the DGCL.
ARTICLE IV
CAPITALIZATION
Section
4.01 Authorized Capital Stock. The total number of shares of all classes of capital stock, each with a par value of $0.0001 per share,
which the Corporation is authorized to issue is 53,000,000 shares, consisting of(a) 52,000,000 shares ofcommon stock (the "Common
Stock"), including (i) 42,000,000 shares ofClass A common stock (the "Class A Common Stock"), and (ii)
10,000,000 shares of Class B common stock (the "Class B Common Stock"), and (b) 1,000,000 shares of preferred stock
(the "Preferred Stock"). ").
Section 4.02 Preferred
Stock. The Board is expressly authorized to provide, out ofthe unissued shares of the Preferred Stock, one or more series of Preferred
Stock. With respect to each such series of Preferred Stock, the Board is expressly authorized to establish the number of shares of Preferred
Stock constituting such series in each such series and to fix the voting rights, designations, powers, preferences and relative, participating,
optional, special and other rights, if any, and any qualifications, limitations and restrictions thereof, as shall be stated in the resolution
or resolutions adopted by the Board providing for the issuance of such series of Preferred Stock and included in a certificate of designation
(a "Preferred Stock Designation") filed pursuant to the DGCL. The Board is expressly vested with the authority, to the full extent provided
by the DGCL, to adopt any such resolution or resolutions.
State of Delaware
Secretary of State
Division of Corporations
Delivered 04:43 PM 05/06/2021
FILED 04:43 PM 05/06/2021
SR 20211635215 - File i'iumber 5183450
Section 4.03 Common Stock.
(i)
Except as otherwise required by law or this certificate of incorporation (including any Preferred Stock Designation) (the "Certificate
of Incorporation"), the holders of shares of Common Stock shall exclusively possess all voting power with respect to the
Corporation.
(ii)
Except as otherwise required by law or this Certificate of Incorporation (including any Preferred Stock Designation), the holders of shares
of Common Stock shall be entitled to one vote for each such share on each matter properly submitted to the stockholders on which the holders
of shares of Common Stock are entitled to vote.
(iii)
Except as otherwise required by law or this Certificate of Incorporation (including any Preferred Stock Designation), at any annual
or special meeting of the stockholders of the Corporation, holders of the Class A Common Stock and holders of the Class B Common
Stock, voting together as a single class, shall have the exclusive right to vote for the election of directors and on all other
matters properly submitted to a vote of the stockholders. Notwithstanding the foregoing, except as otherwise required by law or this
Certificate of Incorporation (including any Preferred Stock Designation), holders of shares of any class of Common Stock shall not
be entitled to vote on any amendment to this Certificate of Incorporation (including any amendment to any Preferred Stock
Designation) that relates solely to the terms of one or more outstanding series of Preferred Stock or other class of Common Stock if
the holders of such affected series of Preferred Stock or class of Common Stock, as applicable, are entitled, either separately or
together with the holders of one or more other such series, to vote thereon pursuant to this Certificate of incorporation (including
any Preferred Stock Designation) or the DGCL.
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(b)
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Class B Common Stock.
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(i)
Initial Conversion Ratio. Shares of Class B Common Stock shall be convertible into shares
of Class A Common Stock on a one-for-one basis (the "Initial
Conversion Ratio")
automatically upon the consummation of the Corporation's initial merger, capital stock exchange, asset acquisition, stock purchase,
reorganization or similar business combination with one or more businesses (the "Business Combination").
(ii)
Adjustment to Initial Conversion Ratio. Notwithstanding the Initial Conversion Ratio, in the
case that additional shares of Class A Common Stock, or equity-linked securities, are issued or deemed issued in excess of the amounts
sold in the Corporation's initial public offering of securities and related to the closing of the initial Business Combination, all issued
and outstanding shares of Class B Common Stock shall automatically convert into shares of Class A Common Stock at the time of the closing
of the initial Business Combination at a ratio for which:
(1) the
numerator shall be equal to the sum of (A) 25% of all shares of Class A Common Stock issued or issuable (upon the conversion or
exercise of any equity-linked securities or otherwise) by the Corporation, related to or in connection with the consummation of the
initial Business Combination ( excluding any securities issued or issuable to any seller in the initial Business Combination) plus
(B) the number of shares of Class B Common Stock issued and outstanding prior to the closing of the initial Business Combination;
and
(2) the
denominator shall be the number of shares of Class B Common Stock issued and outstanding prior to the closing of the initial
Business Combination.
Notwithstanding
anything to the contrary contained herein, (A) the adjustment to the Initial Conversion Ratio provided in this Section
4.03(b)(ii) may be waived as to any particular issuance or deemed issuance of additional shares of Class A Common Stock or
equity-linked securities by the written consent or agreement of holders of a majority of the shares of Class B Common Stock then
outstanding consenting or agreeing separately as a single class in the manner provided in Section 4.03(b)(iii) and (B) in no
event shall the Class B Common Stock convert into Class A Common Stock at a ratio that is less than one-for-one.
The adjustment to the
Initial Conversion Ratio provided in this Section 4.03(b)(ii) shall also be adjusted to account for any subdivision (by stock
split, subdivision, exchange, stock dividend, reclassification, recapitalization or otherwise) or combination (by reverse stock
split, exchange, reclassification, recapitalization or otherwise) or similar reclassification or recapitalization of the outstanding
shares of Class A Common Stock into a greater or lesser number of shares occurring after the original filing of this Certificate of
Incorporation without a proportionate and corresponding subdivision, combination or similar reclassification or recapitalization of
the outstanding shares of Class B Common Stock.
Each share of Class B
Common Stock shall convert into its pro rata number of shares of Class A Common Stock pursuant to this Section 4.03(b). The
pro rata share for each holder of Class B Common Stock will be determined as follows: each share of Class B Common Stock shall
convert into such number of shares of Class A Common Stock as is equal to the product of one multiplied by a fraction, the numerator
of which shall be the total number of shares of Class A Common Stock into which all of the issued and outstanding shares of Class B
Common Stock shall be converted pursuant to this Section 4.03(b) and the denominator of which shall be the total number of issued
and outstanding shares of Class B Common Stock at the time of conversion.
(iii) Voting. Except
as otherwise required by law or this Certificate of Incorporation (including any Preferred Stock Designation), for so long as any
shares of Class B Common Stock shall remain outstanding, the Corporation shall not, without the prior vote or written consent of the
holders of a majority of the shares of Class B Common Stock then outstanding, voting separately as a single class, amend, alter or
repeal any provision of this Certificate, whether by merger, consolidation or otherwise, if such amendment, alteration or repeal
would alter or change the powers, preferences or relative, participating, optional or other or special rights ofthe Class B Common
Stock. Any action required or permitted to be taken at any meeting of the holders of Class B Common Stock may be taken without a
meeting, without prior notice and without a vote, if a consent or consents in writing, setting forth the action so taken, shall be
signed by the holders of the outstanding Class B Common Stock having not less than the minimum number of votes that would be
necessary to authorize or take such action at a meeting at which all shares of Class B Common Stock were present and voted and shall
be delivered to the Corporation by delivery to its registered office in the State of Delaware, its principal place of business, or
an officer or agent of the Corporation having custody of the book in which minutes of proceedings of stockholders are recorded.
Delivery made to the Corporation 's registered office shall be by hand or by certified or registered mail, return receipt requested.
Prompt written notice of the taking of corporate action without a meeting by less than unanimous written consent of the holders of
Class B Common Stock shall, to the extent required by law, be given to those holders of Class B Common Stock who have not consented
in writing and who, if the action had been taken at a meeting, would have been entitled to notice of the meeting if the record date
for notice of such meeting had been the date that written consents signed by a sufficient number of holders of Class B Common Stock
to take the action were delivered to the Corporation.
(c) Dividends.
Subject to applicable law and the rights, if any, of the holders of any outstanding series of the Preferred Stock, the holders of
shares of Common Stock shall be entitled to receive such dividends and other distributions (payable in cash, property or capital
stock of the Corporation) when, as and if declared thereon by the Board from time to time out of any assets or funds of the
Corporation legally available therefor and shall share equally on a per share basis in such dividends and distributions.
(d) Liquidation,
Dissolution or Winding Up of the Corporation. Subject to applicable law and the rights, if any, of the holders of any
outstanding series of the Preferred Stock, in the event of any voluntary or involuntary liquidation, dissolution or winding up of
the Corporation, after payment or provision for payment of the debts and other liabilities of the Corporation, the holders of shares
of Common Stock shall be entitled to receive all the remaining assets of the Corporation available for distribution to its
stockholders, ratably in proportion to the number of shares of Class A Common Stock ( on an as converted basis with respect to the
Class B Common Stock) held by them.
Section 4.04
Rights and Options. The Corporation has the authority to create and issue rights, warrants and options
entitling the holders thereof to acquire from the Corporation any shares of its capital stock of any class or series, with such rights,
warrants and options to be evidenced by or in instrument(s) approved by the Board. The Board is empowered to set the exercise price, duration,
times for exercise and other terms and conditions of such rights, warrants or options; provided, however, that the consideration
to be received for any shares of capital stock issuable upon exercise thereof may not be less than the par value thereof.
ARTICLEV
INCORPORATOR
The name and mailing address of the sole incorporator ofthe
Corporation are as follows:
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Name
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Address
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Rachel L. Connon
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Two Commerce Square
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2001 Market Street, Suite 3400
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Philadelphia, PA 19103
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ARTICLE VI
OFFICERS
As ofthe date hereof, no officers ofthe Corporation have
been appointed.
ARTICLE VII
DIRECTORS
Section 7.01
Board Powers. The business and affairs of the Corporation shall be managed by, or under the
direction of, the Board. In addition to the powers and authority expressly conferred upon the
Board by statute, this Certificate of incorporation or the by-laws of the Corporation (the "By-laws"), the
Board is hereby empowered to exercise all such powers and do all such acts and things as may be exercised or done by the
Corporation, subject, nevertheless, to the provisions of the DGCL, this Certificate of Incorporation and any By-laws adopted by the
stockholders; provided, however, that no By-laws hereafter adopted by the stockholders shall invalidate any prior act of the
Board that would have been valid if such By-laws had not been adopted.
Section 7.02
Election. Unless and except to the extent that the By-laws shall so require, the election of directors
need not be by written ballot.
ARTICLE VIII
BY-LAWS
In furtherance
and not in limitation of the powers conferred upon it by law, the Board is expressly authorized to adopt, amend, alter, change, add
or repeal the By-laws or adopt new By-laws without any action on the part of the stockholders; provided, however, that any
By-laws adopted or amended by the Board, and any powers thereby conferred, may be amended, altered, changed, added or repealed by
the stockholders.
ARTICLE IX
LIMITED LIABILITY; INDEMNIFICATION
Section
9.01 Limitation of Director Liability. To the fullest extent permitted by law, a director of the
Corporation shall not be personally liable to the Corporation or to its stockholders for monetary damages for any breach of
fiduciary duty as a director. No amendment to, modification of, or repeal of this Section 9.01 shall apply to or have any effect on
the liability or alleged liability of any director of the Corporation for or with respect to any acts or omissions of such director
occurring prior to such amendment.
Section 9.02
Indemnification. The Corporation shall indemnify, advance expenses, and hold harmless, to the
fullest extent permitted by applicable law as it presently exists or may hereafter be amended, any person (a "Covered
Person") who was or is made or is threatened to be made a party or is otherwise involved in
any action, suit, or proceeding, whether civil, criminal, administrative, or investigative (a "Proceeding"), by
reason of the fact that he or she, or a person for whom he or she is the legal representative, is or was a director or officer of
the Corporation or, while a director or officer of the Corporation, is or was serving at the request of the Corporation as a
director, officer, employee, or agent of another corporation or of a partnership, joint venture, trust, enterprise, or nonprofit
entity, including service with respect to employee benefit plans, against all liability and loss suffered and expenses (including
attorneys' fees) reasonably incurred by such Covered Person. Notwithstanding the preceding sentence, except for claims for
indemnification (following the final disposition of such Proceeding) or advancement of expenses not paid in full, the Corporation
shall be required to indemnify a Covered Person in connection with a Proceeding ( or part thereof) commenced by such Covered Person
only if the commencement of such Proceeding ( or part thereof) by the Covered Person was authorized in the specific case by the
Board. Any amendment, repeal, or modification of this Section 9.02 shall not adversely affect any right or protection hereunder
of any person in respect of any act or omission occurring prior to the time of such repeal or modification.
ARTICLEX
INSOLVENCY; SALE, LEASE OR EXCHANGE OF ASSETS
Whenever a compromise
or arrangement is proposed between this Corporation and its creditors or any class of them and/or between this Corporation and its
stockholders or any class of them, any court of equitable jurisdiction within the State of Delaware may, on the application in a
summary way of this Corporation or of any creditor or stockholder thereof or on the application of any receiver or receivers
appointed for this Corporation under Section 291 of Title 8 of the Delaware Code or on the application of trustees in dissolution or
of any receiver or receivers appointed for this Corporation under Section 279 of Title 8 of the Delaware Code order a meeting of the
creditors or class of creditors, and/or of the stockholders or class of stockholders of this Corporation, as the case may be, to be
summoned in such manner as the said court directs. If a majority in number representing three fourths in value of the creditors or
class of creditors, and/or of the stockholders or class of stockholders of this Corporation, as the case may be, agree to any
compromise or arrangement and to any reorganization of this Corporation as a consequence of such compromise or arrangement, the said
compromise or arrangement and the said reorganization shall, if sanctioned by the court to which the said application has been made,
be binding on all the creditors or class of creditors, and/or on all the stockholders or class of stockholders, of this Corporation,
as the case may be, and also on this Corporation.
ARTICLE XI
CORPORATE OPPORTUNITY
To the extent allowed
by law, the doctrine of corporate opportunity, or any other analogous doctrine, shall not apply with respect to the Corporation or any
of its officers or directors, or any of their respective affiliates, in circumstances where the application of any such doctrine would
conflict with any fiduciary duties or contractual obligations they may have as of the date of this Certificate of Incorporation or in
the future, and the Corporation renounces any expectancy that any of the directors or officers of the Corporation will offer any such
corporate opportunity of which he or she may become aware to the Corporation, except, the doctrine of corporate opportunity shall apply
with respect to any of the directors or officers of the Corporation only with respect to a corporate opportunity that was offered to such
person solely in his or her capacity as a director or officer of the Corporation and (a) such opportunity is one the Corporation is legally
and contractually permitted to undertake and would otherwise be reasonable for the Corporation to pursue and (b) the director or officer
is permitted to refer that opportunity to the Corporation without violating any legal obligation.
ARTICLE XII
BUSINESS COMBINATIONS WITH INTERESTED STOCKHOLDERS
As permitted by Section 203(b)(l) of
Title 8 of the DGCL, the Corporation elects not to be governed by Section 203 of Title 7 of the DGCL.
ARTICLE XIII
AMENDMENT OF CERTIFICATE OF INCORPORATION
The Corporation
reserves the right at any time, and from time to time, to amend, alter, change, add or repeal any provision contained in this
Certificate of Incorporation (including any Preferred Stock Designation), in the manner now or hereafter prescribed by this
Certificate of incorporation and the DGCL. All rights, preferences, privileges, and powers of any kind conferred upon a director of
stockholder of the Corporation by this Certificate of Incorporation or any amendment thereof are conferred subject to such
right.
ARTICLE XIV
FORUM SELECTION
Section 14.01
Exclusive Forum for Internal Corporate Claims. Subject to Section 14.02, unless the
Corporation consents in writing to the selection of an alternative forum, the sole and exclusive forum for ( a) any derivative
action or proceeding brought on behalf of the Corporation, (b) any action asserting a claim for breach of a fiduciary duty owed by
any current or former director, officer, employee, agent or stockholder of the Corporation to the Corporation or the Corporation's
stockholders, ( c) any action asserting a claim arising pursuant to any provision of the DGCL, the Certificate of Incorporation, or
the By-laws, or (d) any action asserting a claim governed by the internal affairs doctrine, shall be the Court of Chancery of the
State of Delaware ( or, if the Court of Chancery of the State of Delaware lacks jurisdiction over any such action or proceeding,
then another court of the State of Delaware or, if no court of the State of Delaware has jurisdiction, then the United States
District Court for the District of Delaware).
Section 14.02 Exclusive
Forum for Federal Securities Laws Claims. The exclusive forum provision provided in Section 14.01
will not apply to suits brought to enforce any duty or liability created by the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), the Securities Act of 1933, as amended (the "Securities Act"), or any other claim
for which the federal courts have exclusive jurisdiction. Section 27 of the Exchange Act creates exclusive federal jurisdiction over
all suits brought to enforce any duty or liability created by the Exchange Act or the rules and regulations thereunder and Section 22
of the Securities Act creates concurrent jurisdiction for federal and state courts over all suits brought to enforce any duty or liability
created by the Securities Act or the rules and regulations thereunder. As a result, the exclusive forum provision will not apply to suits
brought to enforce any duty or liability created by the Exchange Act, the Securities Act, or any other claim for which the federal courts
have exclusive jurisdiction.
Section
14.03 Consent to Jurisdiction. If any action the subject matter of which is within the scope of Section
14.01 is filed in a court other than a court located within the State of Delaware ( a "Foreign Action") in the
name of any stockholder, such stockholder shall be deemed to have consented to (a) the personal jurisdiction of the state and
federal courts located within the State of Delaware in connection with any action brought in any such court to enforce Section
14.01 (an "FSC Enforcement Action") and (b) having service of process made upon such stockholder in any such
FSC Enforcement Action by service upon such stockholder's counsel in the Foreign Action as agent for such stockholder.
Section 14.04 Severability.
If any provision or provisions of this ARTICLE XIV shall be held to be invalid, illegal or unenforceable
as applied to any person or entity or circumstance for any reason whatsoever, then, to the fullest extent permitted by law, the validity,
legality and enforceability of such provisions in any other circumstance and of the remaining provisions of this ARTICLE XIV (including,
without limitation, each portion of any sentence of this ARTICLE XIV containing any such provision held to be invalid, illegal
or unenforceable that is not itself held to be invalid, illegal or unenforceable) and the application of such provision to other persons
or entities and circumstances shall not in any way be affected or impaired thereby. Any person or entity purchasing or otherwise acquiring
any interest in shares of capital stock of the Corporation shall be deemed to have notice of and consented to the provisions of this
ARTICLE XIV.
[Signature Page Follows}
IN WITNESS WHEREOF, the undersigned incorporator
has executed this Certificate of Incorporation as of the date first set forth above.
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By:
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/s/ Rachel L.Connan
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Name: Rachel L.Connan
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Title: Sole Incorporator
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Exhibit 3.1(b)
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Delaware
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Page 1
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The First State
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I, JEFFREY W. BULLOCK,
SECRETARY OF STATE OF THE STATE OF DELAWARE, DO HEREBY CERTIFY THE ATTACHED IS A TRUE AND CORRECT COPY OF THE CERTIFICATE OF AMENDMENT
OF “EMERALD ESG ACQUISITION CORP.”, CHANGING ITS NAME FROM "EMERALD ESG ACQUISITION CORP." TO "FTAC EMERALD
ACQUISITION CORP.", FILED IN THIS OFFICE ON THE TWELFTH DAY OF NOVEMBER, A.D. 2021, AT 4:47 O`CLOCK P.M.
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State of Delaware
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Secretary of State
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Division of Corporations
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Delivered 04:47 PM 11/12/2021
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STATE OF DELAWARE
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FILED 04:47 PM 11/12/2021
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SR 20213783972 - File Number
5183450
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CERTIFICATE OF AMENDMENT
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OF
CERTIFICATE OF INCORPORATION
OF
EMERALD ESG ACQUISITION
CORP.
Emerald ESG Acquisition
Corp., a corporation organized and existing under and by virtue of the General Corporation Law of the State of Delaware ("DGCL")
(hereinafter called the "Corporation"), does hereby certify:
FIRST: The initial
Certificate of Incorporation of the Corporation (the "Certificate of fucorporation") was filed in the office of the Secretary
of State of Delaware on February 19, 2021. Subsequently, since the filing of the Certificate of Incorporation, an Amended and Restated
Certificate of Incorporation was filed in the office of the Secretary of State of Delaware on May 6, 2021 (the "Amended and Restated
Certificate of Incorporation").
SECOND: That the
Board of Directors of the Corporation, by unanimous written consent of its members, adopted the following resolution with respect to filing
of an amendment to the Amended and Restated Certificate of Incorporation of the Corporation (the "Certificate of Amendment"):
WHEREAS, the Board
of the Corporation deems it desirable and in the best interests of the Corporation to change the name of the Corporation, pursuant to
Section 242 of the DGCL, from "Emerald ESG Acquisition Corp." to "FTAC Emerald Acquisition Corp." and amend the Amended
and Restated Certificate of fucorporation pursuant to the Certificate of Amendment filed in the State of Delaware.
NOW, THEREFORE, BE
IT RESOLVED, that the Certificate of Amendment be, and hereby is, approved and authorized; and, in connection therewith, that each
officer of the Corporation and each other person authorized by each such officer (each, an "Authorized Person", and, collectively,
the "Authorized Persons") is hereby authorized, empowered and directed to execute and deliver, on behalf of the Corporation,
the Certificate of Amendment, together with such changes, additions and omissions thereto as any Authorized Person shall approve, such
approval to be evidenced conclusively by such Authorized Person's execution and delivery of such Certificate of Amendment, and such changes,
additions and omissions are hereby further authorized and approved.
THIRD: That
the aforesaid resolution was duly adopted by the Board of Directors of the Corporation in accordance with the applicable provision of
Section 242 of the General Corporation Law of the State of Delaware.
FOURTH: That the
Amended and Restated Certificate of Incorporation of the Corporation accordingly is hereby amended by deleting Article I thereof in its
entirety and replacing it with the following new Article I:
"ARTICLE I
NAME
The name of the corporation is FTAC Emerald Acquisition Corp."
*******
IN WITNESS WHEREOF, the Corporation has
caused this Certificate of Amendment to be executed by an authorized officer of the Corporation this 12th day ofNovember, 2021.
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EMERALD ESG ACQUISITION CORP.
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By:
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Isl Bracebridge H. Young. Jr.
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Name:
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Bracebridge H. Young, Jr.
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Title:
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President and Chief Executive Officer
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[Signature Page to Certificate of Amendment of Certificate
of Incorporation]
Exhibit 3.1(c)
SECOND AMENDED AND RESTATED
CERTIFICATE OF INCORPORATION
OF
FTAC EMERALD ACQUISITION CORP.
FTAC Emerald Acquisition Corp.,
a corporation organized and existing under the laws of the State of Delaware (the “Corporation”), DOES HEREBY CERTIFY AS FOLLOWS:
1. The
name of the Corporation is “FTAC Emerald Acquisition Corp.” The original certificate of incorporation was filed with the Secretary
of State of the State of Delaware under the name “Emerald ESG Acquisition Corp.” on February 19, 2021, as amended on May 6,
2021 and November 15, 2021 (collectively, the “Original Certificate as Amended”).
2. This
Second Amended and Restated Certificate of Incorporation (the “Amended and Restated Certificate”), which both restates and
amends the provisions of the Original Certificate as Amended, was duly adopted by the Board of Directors of the Corporation (the “Board”)
and the stockholders of the Corporation in accordance with Sections 228, 242 and 245 of the General Corporation Law of the State of Delaware.
3. This
Amended and Restated Certificate shall become effective on the date of filing with the Secretary of State of Delaware.
4. Certain
capitalized terms used in this Amended and Restated Certificate are defined where appropriate herein.
5. The
text of the Original Certificate is hereby restated and amended in its entirety to read as follows:
Article
I. NAME
The name of the corporation
is FTAC Emerald Acquisition Corp.
Article
II. PURPOSE
The purpose of the Corporation
is to engage in any lawful act or activity for which corporations may be organized under the General Corporation Law of the State of Delaware
(the “DGCL”). In addition to the powers and privileges conferred upon the Corporation by law and those incidental thereto,
the Corporation shall possess and may exercise all the powers and privileges that are necessary or convenient to the conduct, promotion
or attainment of the business or purposes of the Corporation including, but not limited to, effecting a merger, capital stock exchange,
asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses (a “Business Combination”).
Article
III. REGISTERED AGENT
The
address of the Corporation’s registered office in the State of Delaware is Rodney Square, 1000 North King Street, in the City of
Wilmington, County of New Castle, State of Delaware, 19801, and the name of the Corporation’s registered agent at such address is
Corporation Guarantee and Trust Company.
Article
IV. CAPITALIZATION
Section 4.01 Authorized
Capital Stock. The total number of shares of all classes of capital stock, each with a par value of
$0.0001 per share, which the Corporation is authorized to issue is 53,000,000 shares, consisting of (a) 52,000,000 shares of common
stock (the “Common Stock”), including (i) 42,000,000 shares of Class A common stock (the “Class A Common
Stock”), and (ii) 10,000,000 shares of Class B common stock (the “Class B Common Stock”), and (b) 1,000,000
shares of preferred stock (the “Preferred Stock”). The number of authorized shares of any of the Class A Common Stock,
Class B Common Stock or Preferred Stock may be increased or decreased (but not below the number of shares thereof then outstanding) by
the affirmative vote of the holders of a majority in voting power of the stock of the Corporation entitled to vote thereon irrespective
of the provisions of Section 242(b)(2) of the DGCL (or any successor provision thereto), and no vote of the holders of any of the Class
A Common Stock, Class B Common Stock or Preferred Stock voting separately as a class shall be required therefor, except as otherwise expressly
provided in this Certificate of Incorporation (including pursuant to any certificate of designation relating to any series of Preferred
Stock).
Section 4.02 Preferred
Stock. Subject to Article IX hereof, the Preferred Stock may be issued from time to time in one or more series. The Board is expressly
granted authority to issue shares of the Preferred Stock, in one or more series, and to fix for each such series such voting powers, full
or limited, and such designations, preferences and relative, participating, optional or other special rights and such qualifications,
limitations or restrictions thereof as shall be stated and expressed in the resolution or resolutions adopted by the Board providing for
the issue of such series (a “Preferred Stock Designation”) and as may be permitted by the DGCL. The number of authorized shares
of Preferred Stock may be increased or decreased (but not below the number of shares thereof then outstanding) by the affirmative vote
of the holders of a majority of the voting power of all of the then outstanding shares of the capital stock of the Corporation representing
a majority of the voting power of all the then-outstanding shares of capital stock of the Corporation entitled to vote thereon, without
a separate vote of the holders of the Preferred Stock, or any series thereof, irrespective of the provisions of Section 242(b)(2) of the
DGCL, unless a vote of any such holders is required pursuant to any Preferred Stock Designation.
Section 4.03 Common
Stock.
(a) Voting.
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i.
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Except as otherwise required by law or this Amended and Restated Certificate (including any Preferred
Stock Designation and Section 9.09 hereof), the holders of the Common Stock shall exclusively possess all voting power with respect to
the Corporation.
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ii.
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Except as otherwise required by law or this Amended and Restated Certificate (including any Preferred
Stock Designation), the holders of shares of Common Stock shall be entitled to one vote for each such share on each matter properly submitted
to the stockholders on which the holders of the Common Stock are entitled to vote.
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iii.
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Except as otherwise required by law or this Amended and Restated Certificate (including any Preferred
Stock Designation and Section 9.09), at any annual or special meeting of the stockholders of the Corporation, holders of the Class A Common
Stock and holders of the Class B Common Stock, voting together as a single class, shall have the exclusive right to vote for the election
of directors and on all other matters properly submitted to a vote of the stockholders. Notwithstanding the foregoing, except as otherwise
required by law or this Amended and Restated Certificate (including any Preferred Stock Designation), holders of shares of any series
of Common Stock shall not be entitled to vote on any amendment to this Amended and Restated Certificate (including any amendment to any
Preferred Stock Designation) that relates solely to the terms of one or more outstanding series of Preferred Stock or other series of
Common Stock if the holders of such affected series of Preferred Stock or Common Stock, as applicable, are entitled exclusively, either
separately or together with the holders of one or more other such series, to vote thereon pursuant to this Amended and Restated Certificate
(including any Preferred Stock Designation) or the DGCL.
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(b) Class
B Common Stock.
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i.
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Shares of Class B Common Stock are convertible into shares of Class A Common Stock on a one-for-one basis
(the “Initial Conversion Ratio”) and shall automatically convert into Class A Common Stock on the closing of the Business
Combination.
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ii.
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Notwithstanding the Initial Conversion Ratio, in the case that additional shares of Class A Common Stock,
or Equity-linked Securities (as defined below), are issued or deemed issued in excess of the amounts sold in the Corporation’s initial
public offering of securities (the “Offering”) and related to the closing of the initial Business Combination, all issued
and outstanding shares of Class B Common Stock shall automatically convert into shares of Class A Common Stock at the time of the closing
of the initial Business Combination at a ratio for which:
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A. the
numerator shall be equal to the sum of 33.33% of (A) all shares of Class A Common Stock issued or issuable (upon the conversion or exercise
of any Equity-linked Securities or otherwise) by the Corporation, related to or in connection with the consummation of the initial Business
Combination (excluding any securities issued or issuable to any seller in the initial Business Combination) plus (B) the number of shares
of Class B Common Stock issued and outstanding prior to the closing of the initial Business Combination; and
B. the
denominator shall be the number of shares of Class B Common Stock issued and outstanding prior to the closing of the initial Business
Combination.
As used herein, the
term “Equity-linked Securities” means any securities of the Corporation which are convertible into or exchangeable or exercisable
for Common Stock.
Notwithstanding anything
to the contrary contained herein, (i) the foregoing adjustment to the Initial Conversion Ratio may be waived as to any particular issuance
or deemed issuance of additional shares of Class A Common Stock or Equity-linked Securities by the written consent or agreement of holders
of a majority of the shares of Class B Common Stock then outstanding consenting or agreeing separately as a single class, and (ii) in
no event may the Class B Common Stock convert into Class A Common Stock at a ratio that is less than one-for-one.
The foregoing conversion
ratio shall also be adjusted to account for any subdivision (by stock split, subdivision, exchange, stock dividend, reclassification,
recapitalization or otherwise) or combination (by reverse stock split, exchange, reclassification, recapitalization or otherwise) or similar
reclassification or recapitalization of the outstanding shares of Class A Common Stock into a greater or lesser number of shares occurring
after the original filing of this Amended and Restated Certificate without a proportionate and corresponding subdivision, combination
or similar reclassification or recapitalization of the outstanding shares of Class B Common Stock.
Each share of Class
B Common Stock shall convert into its pro rata number of shares of Class A Common Stock pursuant to this Section 4.03(b). The pro rata
share for each holder of Class B Common Stock will be determined as follows: Each share of Class B Common Stock shall convert into such
number of shares of Class A Common Stock as is equal to the product of one (1) multiplied by a fraction, the numerator of which shall
be the total number of shares of Class A Common Stock into which all of the issued and outstanding shares of Class B Common Stock shall
be converted pursuant to this Section 4.03(b) and the denominator of which shall be the total number of issued and outstanding shares
of Class B Common Stock at the time of conversion.
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iii.
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Voting. Except as otherwise required by law or this Amended and Restated Certificate (including
any Preferred Stock Designation), for so long as any shares of Class B Common Stock shall remain outstanding, the Corporation shall not,
without the prior vote or written consent of the holders of a majority of the shares of Class B Common Stock then outstanding, voting
separately as a single class, amend, alter or repeal any provision of this Amended and Restated Certificate, whether by merger, consolidation
or otherwise, if such amendment, alteration or repeal would alter or change the powers, preferences or relative, participating, optional
or other or special rights of the Class B Common Stock. Any action required or permitted to be taken at any meeting of the holders of
Class B Common Stock may be taken without a meeting, without prior notice and without a vote, if a consent or consents in writing, setting
forth the action so taken, shall be signed by the holders of the outstanding Class B Common Stock having not less than the minimum number
of votes that would be necessary to authorize or take such action at a meeting at which all shares of Class B Common Stock were present
and voted and shall be delivered to the Corporation by delivery to its registered office in the State of Delaware, its principal place
of business, or an officer or agent of the Corporation having custody of the book in which minutes of proceedings of stockholders are
recorded. Delivery made to the Corporation’s registered office shall be by hand or by certified or registered mail, return receipt
requested. Prompt written notice of the taking of corporate action without a meeting by less than unanimous written consent of the holders
of Class B Common Stock shall, to the extent required by law, be given to those holders of Class B Common Stock who have not consented
in writing and who, if the action had been taken at a meeting, would have been entitled to notice of the meeting if the record date for
notice of such meeting had been the date that written consents signed by a sufficient number of holders of Class B Common Stock to take
the action were delivered to the Corporation.
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(c) Dividends.
Subject to applicable law, the rights, if any, of the holders of any outstanding series of the Preferred Stock and the provisions of Article
IX hereof, the holders of shares of Common Stock shall be entitled to receive such dividends and other distributions (payable in cash,
property or capital stock of the Corporation) when, as and if declared thereon by the Board from time to time out of any assets or funds
of the Corporation legally available therefor and shall share equally on a per share basis in such dividends and distributions.
(d) Liquidation,
Dissolution or Winding Up of the Corporation. Subject to applicable law, the rights, if any, of the holders of any outstanding series
of the Preferred Stock and the provisions of Article IX hereof, in the event of any voluntary or involuntary liquidation, dissolution
or winding up of the Corporation, after payment or provision for payment of the debts and other liabilities of the Corporation, the holders
of shares of Common Stock shall be entitled to receive all the remaining assets of the Corporation available for distribution to its stockholders,
ratably in proportion to the number of shares of Class A Common Stock (on an as converted basis with respect to the Class B Common Stock)
held by them.
Section 4.04 Rights
and Options. The Corporation has the authority to create and issue rights, warrants and options entitling the holders thereof to purchase
shares of any class or series of the Corporation’s capital stock or other securities of the Corporation, and such rights, warrants
and options shall be evidenced by instrument(s) approved by the Board. The Board is hereby expressly authorized to provide for the issuance
of such rights, warrants and options and to establish from time to time the number of such rights, warrants and options to be issued and
to fix the exercise price, duration, times for exercise and other terms and conditions of such rights, warrants or options; provided,
however, that the consideration to be received for any shares of capital stock subject thereto may not be less than the par value thereof.
Article
V. BOARD OF DIRECTORS
Section 5.01 Board Powers.
The business and affairs of the Corporation shall be managed by, or under the direction of, the Board. In addition to the powers and authority
expressly conferred upon the Board by statute, this Amended and Restated Certificate or the Bylaws (“Bylaws”) of the Corporation,
the Board is hereby empowered to exercise all such powers and do all such acts and things as may be exercised or done by the Corporation,
subject, nevertheless, to the provisions of the DGCL, this Amended and Restated Certificate and any Bylaws adopted by the stockholders.
Section 5.02 Number,
Election and Term.
(a) The
number of directors of the Corporation, other than those who may be elected by the holders of one or more series of the Preferred Stock
voting separately by class or series, shall be fixed from time to time exclusively by the Board pursuant to a resolution adopted by a
majority of the Board.
(b) Subject
to Section 5.05 hereof, the Board shall be divided into two classes, as nearly equal in number as possible and designated Class I and
Class II. The Board is authorized to assign members of the Board already in office to Class I or Class II. The term of the initial Class
I Directors shall expire at the first annual meeting of the stockholders of the Corporation following the effectiveness of this Amended
and Restated Certificate and the term of the initial Class II Directors shall expire at the second annual meeting of the stockholders
of the Corporation following the effectiveness of this Amended and Restated Certificate. At each annual meeting of the stockholders of
the Corporation, beginning with the first annual meeting of the stockholders of the Corporation following the effectiveness of this Amended
and Restated Certificate, successors to the class of directors whose term expires at that annual meeting shall be elected for a two-year
term or until the election and qualification of their respective successors in office, subject to their earlier death, resignation or
removal. Subject to Section 5.05 hereof, if the number of directors is changed, any increase or decrease shall be apportioned by the Board
among the classes so as to maintain the number of directors in each class as nearly equal as possible, but in no case shall a decrease
in the number of directors shorten the term of any incumbent director. Subject to the rights of the holders of one or more series of Preferred
Stock, voting separately by class or series, to elect directors pursuant to the terms of one or more series of Preferred Stock, the election
of directors shall be determined by a plurality of the votes cast by the stockholders present in person or represented by proxy at the
meeting and entitled to vote thereon.
(c) Subject
to Section 5.05 hereof, a director shall hold office until the annual meeting for the year in which his or her term expires and until
his or her successor has been elected and qualified, subject, however, to such director’s earlier death, resignation, retirement,
disqualification or removal.
(d) Unless
and except to the extent that the Bylaws shall so require, the election of directors need not be by written ballot.
Section 5.03 Newly Created
Directorships and Vacancies. Subject to Section 5.05 hereof, newly created directorships resulting from an increase in the number
of directors and any vacancies on the Board resulting from death, resignation, retirement, disqualification, removal or other cause may
be filled solely by a majority vote of the remaining directors then in office, even if less than a quorum, or by a sole remaining director
(and not by stockholders), and any director so chosen shall hold office for the remainder of the full term of the class of directors to
which the new directorship was added or in which the vacancy occurred and until his or her successor has been elected and qualified, subject,
however, to such director’s earlier death, resignation, retirement, disqualification or removal.
Section 5.04 Removal.
Subject to Section 5.05 hereof and except as otherwise required by this Amended and Restated Certificate (including Section 9.09 hereof),
any or all of the directors may be removed from office at any time, but only for cause and only by the affirmative vote of holders of
a majority of the then outstanding shares of capital stock of the Corporation entitled to vote generally in the election of directors,
voting together as a single class.
Section 5.05 Preferred
Stock — Directors. Notwithstanding any other provision of this Article V, and except as otherwise required by law, whenever
the holders of one or more series of the Preferred Stock shall have the right, voting separately by class or series, to elect one or more
directors, the term of office, the filling of vacancies, the removal from office and other features of such directorships shall be governed
by the terms of such series of the Preferred Stock as set forth in this Amended and Restated Certificate or any Preferred Stock Designation
and such directors shall not be included in any of the classes created pursuant to this Article V unless expressly provided by such terms.
Article
VI. BYLAWS
In furtherance and not in
limitation of the powers conferred upon it by law, the Board shall have the power to adopt, amend, alter or repeal the Bylaws. The affirmative
vote of a majority of the Board shall be required to adopt, amend, alter or repeal the Bylaws. The Bylaws also may be adopted, amended,
altered or repealed by the stockholders upon obtaining (i) the affirmative vote of the holders of at least a majority of all outstanding
shares of capital stock of the Corporation entitled to vote generally in the election of directors, voting together as a single class,
and (ii) any other vote of the holders of any class or series of capital stock of the Corporation required by applicable law, this Amended
and Restated Certificate, by any Preferred Stock Designation or the Bylaws; provided, however, that no Bylaws hereafter adopted by the
stockholders shall invalidate any prior act of the Board that would have been valid if such Bylaws had not been adopted.
Article
VII. MEETINGS OF STOCKHOLDERS; ACTION BY WRITTEN CONSENT
Section 7.01 Meetings.
Subject to the rights, if any, of the holders of any outstanding series of the Preferred Stock, and to the requirements of applicable
law, special meetings of stockholders of the Corporation may be called only by the Chairman of the Board, Chief Executive Officer of the
Corporation, or the Board pursuant to a resolution adopted by a majority of the Board, and the stockholders shall have no right to call
a special meeting. Except as provided in the foregoing sentence, special meetings of stockholders may not be called by another person
or persons.
Section 7.02 Advance
Notice. Advance notice of stockholder nominations for the election of directors and of business to be brought by stockholders before
any meeting of the stockholders of the Corporation shall be given in the manner provided in the Bylaws.
Section 7.03 Action
by Written Consent. Except as may be otherwise provided for or fixed pursuant to this Amended and Restated Certificate (including
any Preferred Stock Designation), subsequent to the consummation of the Offering, any action required or permitted to be taken by the
stockholders of the Corporation must be effected by a duly called annual or special meeting of such holders and may not be effected by
written consent of the stockholders other than with respect to our Class B Common Stock with respect to which action may be taken by written
consent.
Article
VIII. LIMITED LIABILITY; INDEMNIFICATION
Section 8.01 Limitation
of Director Liability. A director of the Corporation shall not be personally liable to the Corporation or its stockholders for monetary
damages for breach of fiduciary duty as a director, except to the extent such exemption from liability or limitation thereof is not permitted
under the DGCL as the same exists or may hereafter be amended. Any amendment, modification or repeal of the foregoing sentence shall not
adversely affect any right or protection of a director of the Corporation hereunder in respect of any act or omission occurring prior
to the time of such amendment, modification or repeal.
Section 8.02 Indemnification
and Advancement of Expenses.
(a) To
the fullest extent permitted by applicable law, as the same exists or may hereafter be amended, the Corporation shall indemnify and hold
harmless each person who is or was made a party or is threatened to be made a party to or is otherwise involved in any threatened, pending
or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (a “proceeding”) by reason
of the fact that he or she is or was a director or officer of the Corporation or, while a director or officer of the Corporation, is or
was serving at the request of the Corporation as a director, officer, employee or agent of another corporation or of a partnership, joint
venture, trust, other enterprise or nonprofit entity, including service with respect to an employee benefit plan (an “indemnitee”),
whether the basis of such proceeding is alleged action in an official capacity as a director, officer, employee or agent, or in any other
capacity while serving as a director, officer, employee or agent, against all liability and loss suffered and expenses (including, without
limitation, attorneys’ fees, judgments, fines, ERISA excise taxes and penalties and amounts paid in settlement) reasonably incurred
by such indemnitee in connection with such proceeding. The Corporation shall to the fullest extent not prohibited by applicable law pay
the expenses (including attorneys’ fees) incurred by an indemnitee in defending or otherwise participating in any proceeding in
advance of its final disposition; provided, however, that, to the extent required by applicable law, such payment of expenses in advance
of the final disposition of the proceeding shall be made only upon receipt of an undertaking, by or on behalf of the indemnitee, to repay
all amounts so advanced if it shall ultimately be determined that the indemnitee is not entitled to be indemnified under this Section
8.02 or otherwise. The rights to indemnification and advancement of expenses conferred by this Section 8.02 shall be contract rights and
such rights shall continue as to an indemnitee who has ceased to be a director, officer, employee or agent and shall inure to the benefit
of his or her heirs, executors and administrators. Notwithstanding the foregoing provisions of this Section 8.02(a), except for proceedings
to enforce rights to indemnification and advancement of expenses, the Corporation shall indemnify and advance expenses to an indemnitee
in connection with a proceeding (or part thereof) initiated by such indemnitee only if such proceeding (or part thereof) was authorized
by the Board.
(b) The
rights to indemnification and advancement of expenses conferred on any indemnitee by this Section 8.02 shall not be exclusive of any other
rights that any indemnitee may have or hereafter acquire under law, this Amended and Restated Certificate, the Bylaws, an agreement, vote
of stockholders or disinterested directors, or otherwise.
(c) Any
repeal or amendment of this Section 8.02 by the stockholders of the Corporation or by changes in law, or the adoption of any other provision
of this Amended and Restated Certificate inconsistent with this Section 8.02, shall, unless otherwise required by law, be prospective
only (except to the extent such amendment or change in law permits the Corporation to provide broader indemnification rights on a retroactive
basis than permitted prior thereto), and shall not in any way diminish or adversely affect any right or protection existing at the time
of such repeal or amendment or adoption of such inconsistent provision in respect of any proceeding (regardless of when such proceeding
is first threatened, commenced or completed) arising out of, or related to, any act or omission occurring prior to such repeal or amendment
or adoption of such inconsistent provision.
(d) This
Section 8.02 shall not limit the right of the Corporation, to the extent and in the manner authorized or permitted by law, to indemnify
and to advance expenses to persons other than indemnitees.
Article
IX. BUSINESS COMBINATION REQUIREMENTS; EXISTENCE
Section 9.01 General.
(a) The
provisions of this Article IX shall apply during the period commencing upon the effectiveness of this Amended and Restated Certificate
and terminating upon the consummation of the Corporation’s initial Business Combination and no amendment to this Article IX shall
be effective prior to the consummation of the initial Business Combination unless approved by the affirmative vote of the holders of at
least sixty-five percent (65%) of all then outstanding shares of the Common Stock.
(b) Immediately
after the Offering, a certain amount of the net offering proceeds received by the Corporation in the Offering (including the proceeds
of any exercise of the underwriters’ over-allotment option) and certain other amounts specified in the Corporation’s registration
statement on Form S-1, as initially filed with the Securities and Exchange Commission (the “SEC”) on March 8, 2021, as amended
(the “Registration Statement”), shall be deposited in a trust account (the “Trust Account”), established for the
benefit of the Public Stockholders (as defined below) pursuant to a trust agreement described in the Registration Statement. Except for
the withdrawal of interest to pay franchise and income taxes, none of the funds held in the Trust Account (including the interest earned
on the funds held in the Trust Account) will be released from the Trust Account until the earliest to occur of (i) the completion of the
initial Business Combination, (ii) the redemption of 100% of the Offering Shares (as defined below) if the Corporation is unable to complete
its initial Business Combination within 18 months from the closing of the Offering, provided however that if the Corporation has entered
into an agreement for its initial Business Combination within 18 months of the closing of the Offering (or 21 months from the closing
of the Offering if the Corporation has executed a letter of intent, agreement in principle or definitive agreement for a Business Combination
within 18 months from the closing of the Offering)and (iii) the redemption of shares in connection with a vote seeking to amend any provisions
of the Amended and Restated Certificate relating to stockholders’ rights or pre-initial Business Combination activity (as described
in Section 9.07). Holders of shares of Common Stock included as part of the units sold in the Offering (the “Offering Shares”)
(whether such Offering Shares were purchased in the Offering or in the secondary market following the Offering and whether or not such
holders are Emerald ESG Sponsor, LLC or Emerald ESG Advisors, LLC (the “Sponsor”) or officers or directors of the Corporation,
or affiliates of any of the foregoing) are referred to herein as “Public Stockholders.”
Section 9.02 Redemption
Rights.
(a) Prior
to the consummation of the initial Business Combination, the Corporation shall provide all Public Stockholders with the opportunity to
have their Offering Shares redeemed upon the consummation of the initial Business Combination pursuant to, and subject to the limitations
of, Sections 9.02(b) and 9.02(c) hereof (such rights of such holders to have their Offering Shares redeemed pursuant to such Sections,
the “Redemption Rights”) for cash equal to the applicable redemption price per share determined in accordance with Section
9.02(b) hereof (the “Redemption Price”); provided, however, that the Corporation shall only redeem Offering Shares so long
as such redemption would not cause (i) the Class A Common Stock or the securities of any entity that succeeds the Corporation as a public
company to be considered “penny stock” (as such term is defined in Rule 3a51-1 under the Securities Exchange Act of 1934,
as amended (the “Exchange Act”) or any successor rule) or (ii) the Corporation to not meet any greater net tangible asset
or cash requirement which may be contained in the agreement relating to the initial Business Combination upon consummation of the initial
Business Combination (such limitation hereinafter called the “Redemption Limitation”). Notwithstanding anything to the contrary
contained in this Amended and Restated Certificate, there shall be no Redemption Rights or liquidating distributions with respect to any
warrant issued pursuant to the Offering.
(b) If
the Corporation offers to redeem the Offering Shares other than in conjunction with a stockholder vote on an initial Business Combination
with a proxy solicitation pursuant to Regulation 14A of the Exchange Act (or any successor rules or regulations) and filing proxy materials
with the SEC, the Corporation shall offer to redeem the Offering Shares upon the consummation of the initial Business Combination, subject
to lawfully available funds therefor, in accordance with the provisions of Section 9.02(a) hereof, pursuant to a tender offer in accordance
with Rule 13e-4 and Regulation 14E of the Exchange Act (or any successor rules or regulations) (such rules and regulations hereinafter
called the “Tender Offer Rules”) which it shall commence prior to the consummation of the initial Business Combination and
shall file tender offer documents with the SEC prior to the consummation of the initial Business Combination that contain substantially
the same financial and other information about the initial Business Combination and the Redemption Rights as is required under Regulation
14A of the Exchange Act (or any successor rules or regulations) (such rules and regulations hereinafter called the “Proxy Solicitation
Rules”), even if such information is not required under the Tender Offer Rules; provided, however, that if a stockholder vote is
required by law to approve the proposed initial Business Combination, or the Corporation decides to submit the proposed initial Business
Combination to the stockholders for their approval for business or other legal reasons, the Corporation shall offer to redeem the Offering
Shares, subject to lawfully available funds therefor, in accordance with the provisions of Section 9.02(a) hereof in conjunction with
a proxy solicitation pursuant to the Proxy Solicitation Rules (and not the Tender Offer Rules), at a price per share equal to the Redemption
Price calculated in accordance with the following provisions of this Section 9.02(b). In the event that the Corporation offers to redeem
the Offering Shares pursuant to a tender offer in accordance with the Tender Offer Rules, the Redemption Price per share of the Common
Stock payable to holders of the Offering Shares tendering their Offering Shares pursuant to such tender offer shall be equal to the quotient
obtained by dividing (i) the aggregate amount on deposit in the Trust Account as of two business days prior to the consummation of the
initial Business Combination, including any amounts representing interest earned on the Trust Account, less interest previously released
to, or reserved for use by, the Corporation to pay franchise and income taxes, by (ii) the total number of then outstanding Offering Shares.
If the Corporation offers to redeem the Offering Shares in conjunction with a stockholder vote on the proposed initial Business Combination
pursuant to a proxy solicitation, the Redemption Price per share of the Common Stock payable to holders of the Offering Shares exercising
their Redemption Rights shall be equal to the quotient obtained by dividing (a) the aggregate amount on deposit in the Trust Account as
of two business days prior to the consummation of the initial Business Combination, including any amounts representing interest earned
on the Trust Account, less interest previously released to, or reserved for use by, the Corporation to pay franchise and income taxes,
by (b) the total number of then outstanding Offering Shares.
(c) If
the Corporation offers to redeem the Offering Shares in conjunction with a stockholder vote on an initial Business Combination pursuant
to a proxy solicitation, a Public Stockholder, together with any affiliate of such stockholder or any other person with whom such stockholder
is acting in concert or as a “group” (as defined under Section 13(d)(3) of the Exchange Act), shall be restricted from seeking
Redemption Rights with respect to more than an aggregate of 20.0% of the Offering Shares without the prior consent of the Corporation.
(d) In
the event that the Corporation has not consummated an initial Business Combination within 18 months from the closing of the Offering (or
21 months from the closing of the Offering if the Corporation has executed a letter of intent, agreement in principle or definitive agreement
for a Business Combination within 18 months from the closing of the Offering), the Corporation shall (i) cease all operations except for
the purpose of winding up, (ii) as promptly as reasonably possible, but in any event no later than ten (10) business days thereafter,
subject to lawfully available funds therefor, redeem 100% of the Offering Shares in consideration of a per-share price, payable in cash,
equal to the quotient obtained by dividing (A) the aggregate amount then on deposit in the Trust Account, including any amounts representing
interest earned on the Trust Account, less interest previously released to, or reserved for use by, the Corporation in an amount up to
$100,000 to pay dissolution expenses and less any other interest released to, or reserved for use by, the Corporation to pay franchise
and income taxes, by (B) the total number of then outstanding Offering Shares, which redemption will completely extinguish rights of the
Public Stockholders (including the right to receive further liquidation distributions, if any), subject to applicable law, and (iii) as
promptly as reasonably possible following such redemption, subject to the approval of the remaining stockholders and the Board in accordance
with applicable law, dissolve and liquidate, subject in each case to the Corporation’s obligations under the DGCL to provide for
claims of creditors and other requirements of applicable law.
(e) If
the Corporation offers to redeem the Offering Shares in conjunction with a stockholder vote on an initial Business Combination, the Corporation
shall consummate the proposed Business Combination only if (i) such initial Business Combination is approved by the affirmative vote of
the holders of a majority of the shares of the Common Stock that are voted at a stockholder meeting held to consider such initial Business
Combination and (ii) the Redemption Limitation is not exceeded.
(f) If
the Corporation conducts a tender offer pursuant to Section 9.02(b), the Corporation shall consummate the proposed initial Business Combination
only if the Redemption Limitation is not exceeded.
Section 9.03 Distributions
from the Trust Account.
(a) A
Public Stockholder shall be entitled to receive funds from the Trust Account only as provided in Sections 9.02(a), 9.02(b), 9.02(d) and
9.07 hereof. In no other circumstances shall a Public Stockholder have any right or interest of any kind in or to distributions from the
Trust Account, and no stockholder other than a Public Stockholder shall have any interest in or to the Trust Account.
(b) Each
Public Stockholder that does not exercise Redemption Rights shall retain its interest in the Corporation and shall be deemed to have given
its consent to the release of the remaining funds in the Trust Account to the Corporation and, following payment to any Public Stockholders
exercising their Redemption Rights, the remaining funds in the Trust Account shall be released to the Corporation.
(c) The
exercise by a Public Stockholder of the Redemption Rights shall be conditioned on such Public Stockholder following the specific procedures
for redemptions set forth by the Corporation in any applicable tender offer or proxy materials sent to the Public Stockholders relating
to the proposed initial Business Combination. Payment of the amounts necessary to satisfy the Redemption Rights properly exercised shall
be made as promptly as practicable after the consummation of the initial Business Combination.
Section 9.04 Share Issuances.
Prior to the consummation of the Corporation’s initial Business Combination, the Corporation shall not issue any additional shares
of capital stock of the Corporation or any debt securities that would entitle the holders thereof to receive funds from the Trust Account
or vote on any initial Business Combination, on any pre-Business Combination activity or on any amendment to this Article IX.
Section 9.05 Transactions
with Affiliates. In the event the Corporation enters into an initial Business Combination with a target business that is affiliated
with the Sponsor, or the directors or officers of the Corporation, the Corporation, or a committee of the independent directors of the
Corporation, shall obtain an opinion from an independent accounting firm or an independent investment banking firm that is a member of
the Financial Industry Regulatory Authority that such Business Combination is fair to the Corporation from a financial point of view.
Section 9.06 No Transactions
with Other Blank Check Companies. The Corporation shall not enter into an initial Business Combination with another blank check company
or a similar company with nominal operations.
Section 9.07 Additional
Redemption Rights. If, in accordance with Section 9.01(a), any amendment is made to Section 9.02(d) to modify the substance or timing
of the Corporation’s obligation to redeem 100% of the Offering Shares if the Corporation has not consummated an initial Business
Combination within 18 months from the date of the closing of the Offering (or 21 months from the closing of the Offering if the Corporation
has executed a letter of intent, agreement in principle or definitive agreement for a Business Combination within 18 months from the closing
of the Offering), the Public Stockholders shall be provided with the opportunity to redeem their Offering Shares upon the approval of
any such amendment, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including
any amounts representing interest earned on the Trust Account, less any interest previously released to, or reserved for use by, the Corporation
to pay franchise and income taxes, divided by the number of then outstanding Offering Shares; provided, however, that any such amendment
will be voided, and this Article IX will remain unchanged, if any stockholders who wish to redeem are unable to redeem due to the Redemption
Limitation.
Section 9.08 Minimum
Value of Target. So long as the Corporation’s securities are listed on the Nasdaq or another national securities exchange, the
Corporation’s initial Business Combination must occur with one or more target businesses that together have a fair market value
of at least 80% of the assets held in the Trust Account (excluding the deferred underwriting commissions and taxes payable on the interest
earned on the Trust Account) at the time the Corporation signs a definitive agreement to enter into the initial Business Combination.
Section 9.09 Appointment
and Removal of Directors. Notwithstanding any other provision in this Amended and Restated Certificate, prior to the closing of the
initial Business Combination, the holders of Class B Common Stock shall have the exclusive right to elect and remove any director, and
the holders of Class A Common Stock shall have no right to vote on the election or removal of any director. This Section 9.09 may be amended
only by a resolution passed by holders of at least 90% of the outstanding Common Stock entitled to vote thereon.
Article
X. CORPORATE OPPORTUNITY
To the extent allowed by law,
the doctrine of corporate opportunity, or any other analogous doctrine, shall not apply with respect to the Corporation or any of its
officers or directors, or any of their respective affiliates, in circumstances where the application of any such doctrine would conflict
with any fiduciary duties or contractual obligations they may have as of the date of this Amended and Restated Certificate or in the future,
and the Corporation renounces any expectancy that any of the directors or officers of the Corporation will offer any such corporate opportunity
of which he or she may become aware to the Corporation, except, the doctrine of corporate opportunity shall apply with respect to any
of the directors or officers of the Corporation with respect to a corporate opportunity that was offered to such person solely in his
or her capacity as a director or officer of the Corporation and (i) such opportunity is one the Corporation is legally and contractually
permitted to undertake and would otherwise be reasonable for the Corporation to pursue and (ii) the director or officer is permitted to
refer that opportunity to the Corporation without violating any legal obligation.
Article
XI. AMENDMENT OF AMENDED AND RESTATED CERTIFICATE OF INCORPORATION
The Corporation reserves the
right at any time and from time to time to amend, alter, change or repeal any provision contained in this Amended and Restated Certificate
or any Preferred Stock Designation, in the manner now or hereafter prescribed by this Amended and Restated Certificate and the DGCL; and,
except as set forth in Article VIII, all rights, preferences and privileges of whatever nature herein conferred upon stockholders, directors
or any other persons by and pursuant to this Amended and Restated Certificate in its present form or as hereafter amended are granted
subject to the right reserved in this Article XI; provided, however, that Article IX of this Amended and Restated Certificate may be amended
only as provided therein.
Article
XII. EXCLUSIVE FORUM FOR CERTAIN LAWSUITS
Section 12.01 Forum.
Subject to the last sentence in this Section 12.01, and unless the Corporation consents in writing to the selection of an alternative
forum, to the fullest extent permitted by the applicable law, the Court of Chancery of the State of Delaware shall be the sole and exclusive
forum for any stockholder (including a beneficial owner) to bring (i) any derivative action or proceeding brought on behalf of the Corporation,
(ii) any action asserting a claim of breach of a fiduciary duty owed by any director, officer or other employee of the Corporation to
the Corporation or the Corporation’s stockholders, (iii) any action asserting a claim against the Corporation, its directors, officers
or employees arising pursuant to any provision of the DGCL or this Amended and Restated Certificate or the Bylaws, or (iv) any action
asserting a claim against the Corporation, its directors, officers or employees governed by the internal affairs doctrine and, if brought
outside of Delaware, the stockholder bringing the suit will be deemed to have consented to service of process on such stockholder’s
counsel except any action (A) as to which the Court of Chancery in the State of Delaware determines that there is an indispensable party
not subject to the jurisdiction of the Court of Chancery (and the indispensable party does not consent to the personal jurisdiction of
the Court of Chancery within ten days following such determination), (B) which is vested in the exclusive jurisdiction of a court or forum
other than the Court of Chancery, or (C) for which the Court of Chancery does not have subject matter jurisdiction. Notwithstanding the
foregoing, (i) the provisions of this Section 12.01 will not apply to suits brought to enforce any liability or duty created by the Exchange
Act or any other claim for which the federal courts have exclusive jurisdiction and (ii) unless the Corporation consents in writing to
the selection of an alternative forum, the federal district courts of the United States of America shall, to the fullest extent permitted
by law, be the exclusive forum for the resolution of any complaint asserting a cause of action arising under the Securities Act of 1933,
as amended, or the rules and regulations promulgated thereunder.
Section 12.02 Consent
to Jurisdiction. If any action the subject matter of which is within the scope of Section 12.01 immediately above is filed in a court
other than a court located within the State of Delaware (a “Foreign Action”) in the name of any stockholder, such stockholder
shall be deemed to have consented to (i) the personal jurisdiction of the state and federal courts located within the State of Delaware
in connection with any action brought in any such court to enforce Section 12.01 immediately above (an “FSC Enforcement Action”)
and (ii) having service of process made upon such stockholder in any such FSC Enforcement Action by service upon such stockholder’s
counsel in the Foreign Action as agent for such stockholder.
Section 12.03 Severability.
If any provision or provisions of this Article XII shall be held to be invalid, illegal or unenforceable as applied to any person or entity
or circumstance for any reason whatsoever, then, to the fullest extent permitted by law, the validity, legality and enforceability of
such provisions in any other circumstance and of the remaining provisions of this Article XII (including, without limitation, each portion
of any sentence of this Article XII containing any such provision held to be invalid, illegal or unenforceable that is not itself held
to be invalid, illegal or unenforceable) and the application of such provision to other persons or entities and circumstances shall not
in any way be affected or impaired thereby. Any person or entity purchasing or otherwise acquiring any interest in shares of capital stock
of the Corporation shall be deemed to have notice of and consented to the provisions of this Article XII.
[signature page follows]
IN WITNESS WHEREOF, FTAC Emerald
Acquisition Corp. has caused this Second Amended and Restated Certificate of Incorporation to be duly executed in its name and on its
behalf as of the ___ day of _______, 2021.
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FTAC EMERALD ACQUISITION CORP.
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By:_________________________________
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Name: Bracebridge H. Young, Jr.
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Title: President and Chief Executive Officer
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[Signature Page to Second Amended and Restated
Certificate of Incorporation]
Exhibit 3.2
AMENDED AND RESTATED BY-LAWS
OF
FTAC
Emerald Acquisition Corp.
Adopted
as of November 12, 2021
ARTICLE I
OFFICES
Section 1.01 Registered
Office. The registered office of FTAC Emerald Acquisition Corp. (the “Corporation”) will be fixed in the certificate
of incorporation of the Corporation, as may be amended or restated from time to time (the “Certificate of Incorporation”).
Section 1.02 Other
Offices. The Corporation may, have other offices, both within and without the State of Delaware, as the board of directors
of the Corporation (the “Board”), from time to time, shall determine or as the business and affairs of the Corporation
may require.
ARTICLE II
STOCKHOLDERS MEETINGS
Section 2.01 Place
of Meetings. All meetings of the stockholders shall be held at such place, if any, either within or without the State of Delaware,
or by means of remote communication, as shall be designated from time to time by resolution of Board and stated in the notice of meeting.
Section 2.02 Annual
Meetings. The annual meeting of stockholders for the election of directors and for the transaction of such other business as may
property come before the meeting in accordance with these by-laws of the Corporation (the “By-laws”) shall be held
at such date, time, and place, if any as shall be determined by the Board and stated in the notice of the meeting; provided, however,
that the Board may in its sole discretion determine that the meeting shall not be held at any place, but may instead be held solely by
means of remote communication pursuant to Section 9.05(a).
Section 2.03 Special
Meetings. Subject to the rights of the holders of any outstanding series of the preferred stock, par value $0.0001 per share,
of the Corporation (“Preferred Stock”), and to the requirements of the General Corporation Law of the State of Delaware,
as amended (the “DGCL”), special meetings of stockholders, for any purpose or purposes, may be called only by the Chief
Executive Officer or the Board pursuant to a resolution adopted by a majority of the Board, and may not be called by any other person.
Special meetings of stockholders shall be held at such place, either within or without the State of Delaware, and at such time and on
such date as shall be determined by the Board and stated in the Corporation’s notice of the meeting, provided that the Board may
in its sole discretion determine that the meeting shall not be held at any place, but may instead be held solely by means of remote communication
pursuant to Section 9.05(a).
Section 2.04 Notices. Written
notice of each stockholders meeting stating the place, if any, date, and time of the meeting, and the means of remote communication, if
any, by which stockholders and proxy holders may be deemed to be present in person and vote at such meeting and the record date for determining
the stockholders entitled to vote at the meeting, if such date is different from the record date for determining stockholders entitled
to notice of the meeting, shall be given in the manner permitted by Section 9.03 to each stockholder entitled to
vote thereat as of the record date for determining the stockholders entitled to notice of the meeting, by the Corporation not less than
10 nor more than 60 days before the date of the meeting unless otherwise required by the DGCL. If said notice is for a stockholders
meeting other than an annual meeting, it shall in addition state the purpose or purposes for which the meeting is called, and the business
transacted at such meeting shall be limited to the matters so stated in the Corporation’s notice of meeting (or any supplement thereto).
Any meeting of stockholders as to which notice has been given may be postponed, and any meeting of stockholders as to which notice has
been given may be cancelled, by the Board upon public announcement (as defined in Section 2.08(c)) given before the date
previously scheduled for such meeting.
Section 2.05 Quorum.
Except as otherwise provided by applicable law, the Certificate of Incorporation, or these By-laws, the presence, in person or by proxy,
at a stockholders meeting of the holders of shares of outstanding capital stock of the Corporation representing a majority of the voting
power of all outstanding shares of capital stock of the Corporation entitled to vote at such meeting shall constitute a quorum for the
transaction of business at such meeting, except that when specified business is to be voted on by a class or series of stock voting as
a class, the holders of shares representing a majority of the voting power of the outstanding shares of such class or series shall constitute
a quorum of such class or series for the transaction of such business. If a quorum shall not be present or represented by proxy at any
meeting of the stockholders of the Corporation, the chairman of the meeting may adjourn the meeting from time to time in the manner provided
in Section 2.07 until a quorum shall attend. The stockholders present at a duly convened meeting may continue to
transact business until adjournment, notwithstanding the withdrawal of enough stockholders to leave less than a quorum. Shares of its
own stock belonging to the Corporation or to another corporation, if a majority of the voting power of the shares entitled to vote in
the election of directors of such other corporation is held, directly or indirectly, by the Corporation, shall neither be entitled to
vote nor be counted for quorum purposes; provided, however, that the foregoing shall not limit the right of the Corporation or any such
other corporation to vote shares held by it in a fiduciary capacity.
Section 2.06 Voting
of Shares.
(a) Voting
Lists. The Secretary of the Corporation (the “Secretary”) shall prepare, or shall cause the officer or agent who
has charge of the stock ledger of the Corporation to prepare and make, at least 10 days before every meeting of stockholders, a complete
list of the stockholders of record entitled to vote at such meeting; provided, however, that if the record date for determining the stockholders
entitled to vote is less than 10 days before the meeting date, the list shall reflect the stockholders entitled to vote as of the tenth
day before the meeting date, arranged in alphabetical order and showing the address and the number and class of shares registered in
the name of each stockholder. Nothing contained in this Section 2.06(a) shall require the Corporation to include
electronic mail addresses or other electronic contact information on such list. Such list shall be open to the examination of any stockholder,
for any purpose germane to the meeting, during ordinary business hours for a period of at least 10 days prior to the meeting: (i) on
a reasonably accessible electronic network, provided that the information required to gain access to such list is provided with the notice
of the meeting, or (ii) during ordinary business hours, at the principal place of business of the Corporation. In the event that
the Corporation determines to make the list available on an electronic network, the Corporation may take reasonable steps to ensure that
such information is available only to stockholders of the Corporation. If the meeting is to be held at a place, then the list shall be
produced and kept at the time and place of the meeting during the whole time thereof and may be inspected by any stockholder who is present.
If a meeting of stockholders is to be held solely by means of remote communication as permitted by Section 9.05(a),
the list shall be open to the examination of any stockholder during the whole time of the meeting on a reasonably accessible electronic
network, and the information required to access such list shall be provided with the notice of meeting. The stock ledger shall be the
only evidence as to who are the stockholders entitled to examine the list required by this Section 2.06(a) or to
vote in person or by proxy at any meeting of stockholders.
(b) Manner
of Voting. At any stockholders meeting, every stockholder entitled to vote may vote in person or by proxy. If authorized by the Board,
the voting by stockholders or proxy holders at any meeting conducted by remote communication may be effected by a ballot submitted by
electronic transmission (as defined in Section 9.03(c)), provided that any such electronic transmission must either
set forth or be submitted with information from which the Corporation can determine that the electronic transmission was authorized by
the stockholder or proxy holder. The Board, in its discretion, or the chairman of the meeting of stockholders, in such person’s
discretion, may require that any votes cast at such meeting shall be cast by written ballot.
(c) Proxies.
Each stockholder entitled to vote at a meeting of stockholders or to express consent or dissent to corporate action in writing without
a meeting may authorize another person or persons to act for such stockholder by proxy, but no such proxy shall be voted or acted upon
after three years from its date, unless the proxy expressly provides for a longer period. Proxies need not be filed with the Secretary
until the meeting is called to order but shall be filed with the Secretary before being voted. No stockholder shall have cumulative voting
rights. Without limiting the manner in which a stockholder may authorize another person or persons to act for such stockholder as proxy,
either of the following shall constitute a valid means by which a stockholder may grant such authority:
(i) A
stockholder may execute a writing authorizing another person or persons to act for such stockholder as proxy. Execution may be accomplished
by the stockholder or such stockholder’s authorized officer, director, employee or agent signing such writing or causing such person’s
signature to be affixed to such writing by any reasonable means, including, but not limited to, by facsimile signature.
(ii) A
stockholder may authorize another person or persons to act for such stockholder as proxy by transmitting or authorizing the transmission
of an electronic transmission to the person who will be the holder of the proxy or to a proxy solicitation firm, proxy support service
organization or like agent duly authorized by the person who will be the holder of the proxy to receive such transmission, provided that
any such electronic transmission must either set forth or be submitted with information from which it can be determined that the electronic
transmission was authorized by the stockholder. Any copy, facsimile telecommunication or other reliable reproduction of the writing or
transmission authorizing another person or persons to act as proxy for a stockholder may be substituted or used in lieu of the original
writing or transmission for any and all purposes for which the original writing or transmission could be used; provided that such copy,
facsimile telecommunication or other reproduction shall be a complete reproduction of the entire original writing or transmission.
(d) Required
Vote. Subject to the rights of the holders of one or more series of Preferred Stock, voting separately by class or series, to elect
directors pursuant to the terms of one or more series of Preferred Stock, at all meetings of stockholders at which a quorum is present,
the election of directors shall be determined by a plurality of the votes cast by the stockholders present in person or represented by
proxy at the meeting and entitled to vote thereon. All other matters presented to the stockholders at a meeting at which a quorum is
present shall be determined by the vote of a majority of the votes cast by the stockholders present in person or represented by proxy
at the meeting and entitled to vote thereon, unless the matter is one upon which, by applicable law, the Certificate of Incorporation,
these By-laws or applicable stock exchange rules, a different vote is required, in which case such provision shall govern and control
the decision of such matter.
(e) Inspectors
of Election. The Board may, and shall if required by law, in advance of any meeting of stockholders, appoint one or more persons
as inspectors of election, who may be employees of the Corporation or otherwise serve the Corporation in other capacities, to act at
such meeting of stockholders or any adjournment thereof and to make a written report thereof. The Board may appoint one or more persons
as alternate inspectors to replace any inspector who fails to act. If no inspectors of election or alternates are appointed by the Board,
the chairman of the meeting shall appoint one or more inspectors to act at the meeting. Each inspector, before discharging his or her
duties, shall take and sign an oath faithfully to execute the duties of inspector with strict impartiality and according to the best
of his or her ability. The inspectors shall ascertain and report the number of outstanding shares and the voting power of each; determine
the number of shares present in person or represented by proxy at the meeting and the validity of proxies and ballots; count all votes
and ballots and report the results; determine and retain for a reasonable period a record of the disposition of any challenges made to
any determination by the inspectors; and certify their determination of the number of shares represented at the meeting and their count
of all votes and ballots. No person who is a candidate for an office at an election may serve as an inspector at such election. Each
report of an inspector shall be in writing and signed by the inspector or by a majority of them if there is more than one inspector acting
at such meeting. If there is more than one inspector, the report of a majority shall be the report of the inspectors.
Section 2.07 Adjournments.
Any meeting of stockholders, annual or special, may be adjourned by the chairman of the meeting, from time to time, whether or not there
is a quorum, to reconvene at the same or some other place. Notice need not be given of any such adjourned meeting if the date, time,
and place, if any, thereof, and the means of remote communication, if any, by which stockholders and proxy holders may be deemed to be
present in person and vote at such adjourned meeting are announced at the meeting at which the adjournment is taken. At the adjourned
meeting the stockholders, or the holders of any class or series of stock entitled to vote separately as a class, as the case may be,
may transact any business that might have been transacted at the original meeting. If the adjournment is for more than 30 days,
notice of the adjourned meeting shall be given to each stockholder of record entitled to vote at the meeting. If after the adjournment
a new record date for stockholders entitled to vote is fixed for the adjourned meeting, the Board shall fix a new record date for notice
of such adjourned meeting in accordance with Section 9.02, and shall give notice of the adjourned meeting to each stockholder
of record entitled to vote at such adjourned meeting as of the record date fixed for notice of such adjourned meeting.
Section 2.08 Advance
Notice for Business.
(a) Annual
Meetings of Stockholders. No business may be transacted at an annual meeting of stockholders, other than business that is either
(i) specified in the Corporation’s notice of meeting (or any supplement thereto) given by or at the direction of the Board,
(ii) otherwise properly brought before the annual meeting by or at the direction of the Board or (iii) otherwise properly brought
before the annual meeting by any stockholder of the Corporation (x) who is a stockholder of record entitled to vote at such annual
meeting on the date of the giving of the notice provided for in this Section 2.08(a) and on the record date for
the determination of stockholders entitled to vote at such annual meeting and (y) who complies with the notice procedures set forth
in this Section 2.08(a). Notwithstanding anything in this Section 2.08(a) to the contrary, only
persons nominated for election as a director to fill any term of a directorship that expires on the date of the annual meeting pursuant
to Section 3.02 will be considered for election at such meeting.
(i) In
addition to any other applicable requirements, for business (other than nominations) to be properly brought before an annual meeting
by a stockholder, such stockholder must have given timely notice thereof in proper written form to the Secretary and such business must
otherwise be a proper matter for stockholder action. Subject to Section 2.08(a)(iii), a stockholder’s notice to
the Secretary with respect to such business, to be timely, must be received by the Secretary at the principal executive offices of the
Corporation not later than the opening of business on the 90th day nor earlier than the opening of business on the 120th day before the
anniversary date of the immediately preceding annual meeting of stockholders; provided, however, that in the event that the annual meeting
is more than 30 days before or more than 60 days after such anniversary date, notice by the stockholder to be timely must be so
delivered not earlier than the opening of business on the 120th day before the meeting and not later than the later of (x) the opening
of business on the 90th day before the meeting or (y) the close of business on the 10th day following the day on which public announcement
of the date of the annual meeting is first made by the Corporation. The public announcement of an adjournment or postponement of an annual
meeting shall not commence a new time period (or extend any time period) for the giving of a stockholder’s notice as described
in this Section 2.08(a).
(ii) To
be in proper written form, a stockholder’s notice to the Secretary with respect to any business (other than nominations) must set
forth as to each such matter such stockholder proposes to bring before the annual meeting (A) a brief description of the business
desired to be brought before the annual meeting, the text of the proposal or business (including the text of any resolutions proposed
for consideration and in the event such business includes a proposal to amend these By-laws, the language of the proposed amendment) and
the reasons for conducting such business at the annual meeting, (B) the name and record address of such stockholder and the name
and address of the beneficial owner, if any, on whose behalf the proposal is made, (C) the class or series and number of shares of
capital stock of the Corporation that are owned beneficially and of record by such stockholder and by the beneficial owner, if any, on
whose behalf the proposal is made, (D) a description of all arrangements or understandings between such stockholder and the beneficial
owner, if any, on whose behalf the proposal is made and any other person or persons (including their names) in connection with the proposal
of such business by such stockholder, (E) any material interest of such stockholder and the beneficial owner, if any, on whose behalf
the proposal is made in such business and (F) a representation that such stockholder (or a qualified representative of such stockholder)
intends to appear in person or by proxy at the annual meeting to bring such business before the meeting.
(iii) The
foregoing notice requirements of this Section 2.08(a) shall be deemed satisfied by a stockholder as to any proposal
(other than nominations) if the stockholder has notified the Corporation of such stockholder’s intention to present such proposal
at an annual meeting in compliance with Rule 14a-8 (or any successor thereof) of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”), and such stockholder has complied with the requirements of such Rule for inclusion of such
proposal in a proxy statement prepared by the Corporation to solicit proxies for such annual meeting. No business shall be conducted
at the annual meeting of stockholders except business brought before the annual meeting in accordance with the procedures set forth in
this Section 2.08(a), provided, however, that once business has been properly brought before the annual meeting in accordance
with such procedures, nothing in this Section 2.08(a) shall be deemed to preclude discussion by any stockholder
of any such business. If the Board or the chairman of the annual meeting determines that any stockholder proposal was not made in accordance
with the provisions of this Section 2.08(a) or that the information provided in a stockholder’s notice does
not satisfy the information requirements of this Section 2.08(a), such proposal shall not be presented for action at
the annual meeting. Notwithstanding the foregoing provisions of this Section 2.08(a), if the stockholder (or a qualified
representative of the stockholder) does not appear at the annual meeting of stockholders of the Corporation to present the proposed business,
such proposed business shall not be transacted, notwithstanding that proxies in respect of such matter may have been received by the
Corporation.
(iv) In
addition to the provisions of this Section 2.08(a), a stockholder shall also comply with all applicable requirements
of the Exchange Act and the rules and regulations thereunder with respect to the matters set forth herein. Nothing in this Section 2.08(a) shall
be deemed to affect any rights of stockholders to request inclusion of proposals in the Corporation’s proxy statement pursuant to
Rule 14a-8 under the Exchange Act.
(b) Special
Meetings of Stockholders. Only such business shall be conducted at a special meeting of stockholders as shall have been brought before
the meeting pursuant to the Corporation’s notice of meeting. Nominations of persons for election to the Board may be made at a
special meeting of stockholders at which directors are to be elected pursuant to the Corporation’s notice of meeting only pursuant
to Section 3.02.
(c) Public
Announcement. For purposes of these By-laws, “public announcement” shall mean disclosure in a press release reported
by the Dow Jones News Service, Associated Press or comparable national news service or in a document publicly filed by the Corporation
with the Securities and Exchange Commission pursuant to Sections 13, 14 or 15(d) of the Exchange Act (or any successor thereto).
Section 2.09 Conduct
of Meetings. The chairman of each annual and special meeting of stockholders shall be the Chairman of the Board or, in the absence
(or inability or refusal to act) of the Chairman of the Board, the Chief Executive Officer (if he or she shall be a director) or, in
the absence (or inability or refusal to act) of the Chief Executive Officer or if the Chief Executive Officer is not a director, the
President (if he or she shall be a director) or, in the absence (or inability or refusal to act) of the President or if the President
is not a director, such other person as shall be appointed by the Board. The date and time of the opening and the closing of the polls
for each matter upon which the stockholders will vote at a meeting shall be announced at the meeting by the chairman of the meeting.
The Board may adopt such rules and regulations for the conduct of the meeting of stockholders as it shall deem appropriate. Except
to the extent inconsistent with these By-laws or such rules and regulations as adopted by the Board, the chairman of any meeting
of stockholders shall have the right and authority to convene and to adjourn the meeting, to prescribe such rules, regulations and procedures
and to do all such acts as, in the judgment of such chairman, are appropriate for the proper conduct of the meeting. Such rules, regulations
or procedures, whether adopted by the Board or prescribed by the chairman of the meeting, may include, without limitation, the following:
(a) the establishment of an agenda or order of business for the meeting; (b) rules and procedures for maintaining order
at the meeting and the safety of those present; (c) limitations on attendance at or participation in the meeting to stockholders
of record of the Corporation, their duly authorized and constituted proxies or such other persons as the chairman of the meeting shall
determine; (d) restrictions on entry to the meeting after the time fixed for the commencement thereof; and (e) limitations
on the time allotted to questions or comments by participants. Unless and to the extent determined by the Board or the chairman of the
meeting, meetings of stockholders shall not be required to be held in accordance with the rules of parliamentary procedure. The
secretary of each annual and special meeting of stockholders shall be the Secretary or, in the absence (or inability or refusal to act)
of the Secretary, an Assistant Secretary so appointed to act by the chairman of the meeting. In the absence (or inability or refusal
to act) of the Secretary and all Assistant Secretaries, the chairman of the meeting may appoint any person to act as secretary of the
meeting.
Section 2.10 Consents
in Lieu of Meeting. Unless otherwise provided by the Certificate of Incorporation, until the Corporation consummates an
initial public offering, any action required to be taken at any annual or special meeting of stockholders, or any action which may be
taken at any annual or special meeting of such stockholders, may be taken without a meeting, without prior notice and without a vote,
if a consent in writing, setting forth the action so taken, shall be signed by the holders of outstanding stock entitled to vote thereon
having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares
entitled to vote thereon were present and voted, and shall be delivered to the Corporation by delivery to its registered office in the
State of Delaware, its principal place of business, or an officer or agent of the Corporation having custody of the book in which proceedings
of meetings of stockholders are recorded. Delivery made to the Corporation’s registered office shall be by hand or by certified
or registered mail, return receipt requested.
Every written consent shall
bear the date of signature of each stockholder who signs the consent, and no written consent shall be effective to take the corporate
action referred to therein unless, within 60 days of the earliest dated consent delivered in the manner required by this section
and the DGCL to the Corporation, written consents signed by a sufficient number of holders entitled to vote to take action are delivered
to the Corporation by delivery to its registered office in Delaware, its principal place of business or an officer or agent of the Corporation
having custody of the book in which proceedings of meetings of stockholders are recorded. Delivery made to the Corporation’s registered
office shall be by hand or by certified or registered mail, return receipt requested.
ARTICLE III
DIRECTORS
Section 3.01 Powers;
Number. The business and affairs of the Corporation shall be managed by or under the direction of the Board, which may exercise all
such powers of the Corporation and do all such lawful acts and things as are not by statute or by the Certificate of Incorporation or
by these By-laws required to be exercised or done by the stockholders. Directors need not be stockholders or residents of the State of
Delaware. Subject to the Certificate of Incorporation, the number of directors shall be fixed exclusively by resolution of the Board.
Section 3.02 Advance
Notice for Nomination of Directors.
(a) Only
persons who are nominated in accordance with the following procedures shall be eligible for election as directors of the Corporation,
except as may be otherwise provided by the terms of one or more series of Preferred Stock with respect to the rights of holders of one
or more series of Preferred Stock to elect directors. Nominations of persons for election to the Board at any annual meeting of stockholders,
or at any special meeting of stockholders called for the purpose of electing directors as set forth in the Corporation’s notice
of such special meeting, may be made (i) by or at the direction of the Board or (ii) by any stockholder of the Corporation
(x) who is a stockholder of record entitled to vote in the election of directors on the date of the giving of the notice provided
for in this Section 3.02 and on the record date for the determination of stockholders entitled to vote at such
meeting and (y) who complies with the notice procedures set forth in this Section 3.02.
(b) In
addition to any other applicable requirements, for a nomination to be made by a stockholder, such stockholder must have given timely notice
thereof in proper written form to the Secretary. To be timely, a stockholder’s notice to the Secretary must be received by the Secretary
at the principal executive offices of the Corporation (i) in the case of an annual meeting, not later than the close of business
on the 90th day nor earlier than the opening of business on the 120th day before the anniversary date of the immediately preceding annual
meeting of stockholders; provided, however, that in the event that the annual meeting is more than 30 days before or more than 60
days after such anniversary date, notice by the stockholder to be timely must be so received not earlier than the opening of business
on the 120th day before the meeting and not later than the later of (x) the close of business on the 90th day before the meeting
or (y) the close of business on the 10th day following the day on which public announcement of the date of the annual meeting was
first made by the Corporation; and (ii) in the case of a special meeting of stockholders called for the purpose of electing directors,
not later than the close of business on the 10th day following the day on which public announcement of the date of the special meeting
is first made by the Corporation. In no event shall the public announcement of an adjournment or postponement of an annual meeting or
special meeting commence a new time period (or extend any time period) for the giving of a stockholder’s notice as described in
this Section 3.02.
(c) Notwithstanding
anything in Section 3.02(b) to the contrary, in the event that the number of directors to be elected to the Board at
an annual meeting is greater than the number of directors whose terms expire on the date of the annual meeting and there is no public
announcement by the Corporation naming all of the nominees for the additional directors to be elected or specifying the size of the increased
Board before the close of business on the 90th day prior to the anniversary date of the immediately preceding annual meeting of stockholders,
a stockholder’s notice required by this Section 3.02 shall also be considered timely, but only with respect
to nominees for the additional directorships created by such increase that are to be filled by election at such annual meeting, if it
shall be received by the Secretary at the principal executive offices of the Corporation not later than the close of business on the 10th
day following the date on which such public announcement was first made by the Corporation.
(d) To
be in proper written form, a stockholder’s notice to the Secretary must set forth (i) as to each person whom the stockholder
proposes to nominate for election as a director (A) the name, age, business address and residence address of the person, (B) the
principal occupation or employment of the person, (C) the class or series and number of shares of capital stock of the Corporation
that are owned beneficially or of record by the person and (D) any other information relating to the person that would be required
to be disclosed in a proxy statement or other filings required to be made in connection with solicitations of proxies for election of
directors pursuant to Section 14 of the Exchange Act and the rules and regulations promulgated thereunder; and (ii) as
to the stockholder giving the notice (A) the name and record address of such stockholder as they appear on the Corporation’s
books and the name and address of the beneficial owner, if any, on whose behalf the nomination is made, (B) the class or series and
number of shares of capital stock of the Corporation that are owned beneficially and of record by such stockholder and the beneficial
owner, if any, on whose behalf the nomination is made, (C) a description of all arrangements or understandings relating to the nomination
to be made by such stockholder among such stockholder, the beneficial owner, if any, on whose behalf the nomination is made, each proposed
nominee and any other person or persons (including their names), (D) a representation that such stockholder (or a qualified representative
of such stockholder) intends to appear in person or by proxy at the meeting to nominate the persons named in its notice and (E) any
other information relating to such stockholder and the beneficial owner, if any, on whose behalf the nomination is made that would be
required to be disclosed in a proxy statement or other filings required to be made in connection with solicitations of proxies for election
of directors pursuant to Section 14 of the Exchange Act and the rules and regulations promulgated thereunder. Such notice must
be accompanied by a written consent of each proposed nominee to being named as a nominee and to serve as a director if elected.
(e) If
the Board or the chairman of the meeting of stockholders determines that any nomination was not made in accordance with the provisions
of this Section 3.02, or that the information provided in a stockholder’s notice does not satisfy the information
requirements of this Section 3.02, then such nomination shall not be considered at the meeting in question. Notwithstanding
the foregoing provisions of this Section 3.02, if the stockholder (or a qualified representative of the stockholder)
does not appear at the meeting of stockholders of the Corporation to present the nomination, such nomination shall be disregarded, notwithstanding
that proxies in respect of such nomination may have been received by the Corporation.
(f) In
addition to the provisions of this Section 3.02, a stockholder shall also comply with all of the applicable requirements
of the Exchange Act and the rules and regulations thereunder with respect to the matters set forth herein. Nothing in this Section 3.02
shall be deemed to affect any rights of the holders of Preferred Stock to elect directors pursuant to the Certificate of Incorporation.
Section 3.03 Compensation.
Unless otherwise restricted by the Certificate of Incorporation or these By-laws, the Board shall have the authority to fix the compensation
of directors, including for service on a committee of the Board, and may be paid either a fixed sum for attendance at each meeting of
the Board or other compensation as director. The directors may be reimbursed their expenses, if any, of attendance at each meeting of
the Board. No such payment shall preclude any director from serving the Corporation in any other capacity and receiving compensation
therefor. Members of committees of the Board may be allowed like compensation and reimbursement of expenses for service on the committee.
ARTICLE IV
BOARD MEETINGS
Section 4.01 Annual
Meetings. The Board shall meet as soon as practicable after the adjournment of each annual stockholders meeting at the place of the
annual stockholders meeting unless the Board shall fix another time and place and give notice thereof in the manner required herein for
special meetings of the Board. No notice to the directors shall be necessary to legally convene this meeting, except as provided in this Section 4.01.
Section 4.02 Regular
Meetings. Regularly scheduled, periodic meetings of the Board may be held without notice at such times, dates and places (within
or without the State of Delaware) as shall from time to time be determined by the Board.
Section 4.03 Special
Meetings. Special meetings of the Board (a) may be called by the Chairman of the Board or President and (b) shall
be called by the Chairman of the Board, President or Secretary on the written request of at least a majority of directors then in office,
or the sole director, as the case may be, and shall be held at such time, date and place (within or without the State of Delaware) as
may be determined by the person calling the meeting or, if called upon the request of directors or the sole director, as specified in
such written request. Notice of each special meeting of the Board shall be given, as provided in Section 9.03, to each
director (i) at least 24 hours before the meeting if such notice is oral notice given personally or by telephone or written notice
given by hand delivery or by means of a form of electronic transmission and delivery; (ii) at least two days before the meeting if
such notice is sent by a nationally recognized overnight delivery service; and (iii) at least five days before the meeting if such
notice is sent through the United States mail. If the Secretary shall fail or refuse to give such notice, then the notice may be given
by the officer who called the meeting or the directors who requested the meeting. Any and all business that may be transacted at a regular
meeting of the Board may be transacted at a special meeting. Except as may be otherwise expressly provided by applicable law, the Certificate
of Incorporation, or these By-laws, neither the business to be transacted at, nor the purpose of, any special meeting need be specified
in the notice or waiver of notice of such meeting. A special meeting may be held at any time without notice if all the directors are present
or if those not present waive notice of the meeting in accordance with Section 9.04.
Section 4.04 Quorum;
Required Vote. A majority of the Board shall constitute a quorum for the transaction of business at any meeting of the Board,
and the act of a majority of the directors present at any meeting at which there is a quorum shall be the act of the Board, except as
may be otherwise specifically provided by applicable law, the Certificate of Incorporation or these By-laws. If a quorum shall not be
present at any meeting, a majority of the directors present may adjourn the meeting from time to time, without notice other than announcement
at the meeting, until a quorum is present.
Section 4.05 Consent
In Lieu of Meeting. Unless otherwise restricted by the Certificate of Incorporation or these By-laws, any action required or
permitted to be taken at any meeting of the Board or any committee thereof may be taken without a meeting if all members of the Board
or committee, as the case may be, consent thereto in writing or by electronic transmission, and the writing or writings or electronic
transmission or transmissions (or paper reproductions thereof) are filed with the minutes of proceedings of the Board or committee. Such
filing shall be in paper form if the minutes are maintained in paper form and shall be in electronic form if the minutes are maintained
in electronic form.
Section 4.06 Organization.
The chairman of each meeting of the Board shall be the Chairman of the Board or, in the absence (or inability or refusal to act) of the
Chairman of the Board, the Chief Executive Officer (if he or she shall be a director) or, in the absence (or inability or refusal to act)
of the Chief Executive Officer or if the Chief Executive Officer is not a director, the President (if he or she shall be a director) or
in the absence (or inability or refusal to act) of the President or if the President is not a director, a chairman elected from the directors
present. The Secretary shall act as secretary of all meetings of the Board. In the absence (or inability or refusal to act) of the Secretary,
an Assistant Secretary shall perform the duties of the Secretary at such meeting. In the absence (or inability or refusal to act) of the
Secretary and all Assistant Secretaries, the chairman of the meeting may appoint any person to act as secretary of the meeting.
ARTICLE V
COMMITTEES OF DIRECTORS
Section 5.01 Establishment.
The Board may by resolution of the Board designate one or more committees, each committee to consist of one or more of the directors
of the Corporation. Each committee shall keep regular minutes of its meetings and report the same to the Board when required by the resolution
designating such committee. The Board shall have the power at any time to fill vacancies in, to change the membership of, or to dissolve
any such committee.
Section 5.02 Available
Powers. Any committee established pursuant to Section 5.01 hereof, to the extent permitted by applicable
law and by resolution of the Board, shall have and may exercise all of the powers and authority of the Board in the management of the
business and affairs of the Corporation, and may authorize the seal of the Corporation to be affixed to all papers that may require it.
Section 5.03 Alternate
Members. The Board may designate one or more directors as alternate members of any committee, who may replace any absent or
disqualified member at any meeting of such committee. In the absence or disqualification of a member of the committee, the member or members
thereof present at any meeting and not disqualified from voting, whether or not he, she or they constitute a quorum, may unanimously appoint
another member of the Board to act at the meeting in place of any such absent or disqualified member.
Section 5.04 Procedures.
Unless the Board otherwise provides, the time, date, place, if any, and notice of meetings of a committee shall be determined by such
committee. At meetings of a committee, a majority of the number of members of the committee (but not including any alternate member, unless
such alternate member has replaced any absent or disqualified member at the time of, or in connection with, such meeting) shall constitute
a quorum for the transaction of business. The act of a majority of the members present at any meeting at which a quorum is present shall
be the act of the committee, except as otherwise specifically provided by applicable law, the Certificate of Incorporation, these By-laws
or the Board. If a quorum is not present at a meeting of a committee, the members present may adjourn the meeting from time to time, without
notice other than an announcement at the meeting, until a quorum is present. Unless the Board otherwise provides and except as provided
in these By-laws, each committee designated by the Board may make, alter, amend and repeal rules for the conduct of its business.
In the absence of such rules each committee shall conduct its business in the same manner as the Board is authorized to conduct its
business pursuant to ARTICLE III and ARTICLE IV of these By-laws.
ARTICLE VI
OFFICERS
Section 6.01 Officers.
The officers of the Corporation elected by the Board shall be a Chief Executive Officer, a Chief Financial Officer, a Secretary and such
other officers (including without limitation, a Chairman of the Board, Presidents, Vice Presidents, Assistant Secretaries and a Treasurer)
as the Board from time to time may determine. Officers elected by the Board shall each have such powers and duties as generally pertain
to their respective offices, subject to the specific provisions of this ARTICLE VI. Such officers shall also have such
powers and duties as from time to time may be conferred by the Board. The Chief Executive Officer or President may also appoint such
other officers (including without limitation one or more Vice Presidents and Controllers) as may be necessary or desirable for the conduct
of the business of the Corporation. Such other officers shall have such powers and duties and shall hold their offices for such terms
as may be provided in these By-laws or as may be prescribed by the Board or, if such officer has been appointed by the Chief Executive
Officer or President, as may be prescribed by the appointing officer.
(a) Chairman
of the Board. The Chairman of the Board shall preside when present at all meetings of the stockholders and the Board. The Chairman
of the Board shall have general supervision and control of the acquisition activities of the Corporation subject to the ultimate authority
of the Board, and shall be responsible for the execution of the policies of the Board with respect to such matters. In the absence (or
inability or refusal to act) of the Chairman of the Board, the Chief Executive Officer (if he or she shall be a director) shall preside
when present at all meetings of the stockholders and the Board. The powers and duties of the Chairman of the Board shall not include
supervision or control of the preparation of the financial statements of the Corporation (other than through participation as a member
of the Board). The position of Chairman of the Board and Chief Executive Officer may be held by the same person.
(b) Chief
Executive Officer. The Chief Executive Officer shall be the chief executive officer of the Corporation, shall have general supervision
of the affairs of the Corporation and general control of all of its business subject to the ultimate authority of the Board, and shall
be responsible for the execution of the policies of the Board with respect to such matters, except to the extent any such powers and
duties have been prescribed to the Chairman of the Board pursuant to Section 6.01(a) above. In the absence (or
inability or refusal to act) of the Chairman of the Board, the Chief Executive Officer (if he or she shall be a director) shall preside
when present at all meetings of the stockholders and the Board. The position of Chief Executive Officer and President may be held by
the same person.
(c) President.
The President shall make recommendations to the Chief Executive Officer on all operational matters that would normally be reserved for
the final executive responsibility of the Chief Executive Officer. In the absence (or inability or refusal to act) of the Chairman of
the Board and Chief Executive Officer, the President (if he or she shall be a director) shall preside when present at all meetings of
the stockholders and the Board. The President shall also perform such duties and have such powers as shall be designated by the Board.
The position of President and Chief Executive Officer may be held by the same person.
(d) Vice
Presidents. In the absence (or inability or refusal to act) of the President, the Vice President (or in the event there be more than
one Vice President, the Vice Presidents in the order designated by the Board) shall perform the duties and have the powers of the President.
Any one or more of the Vice Presidents may be given an additional designation of rank or function.
(e) Secretary.
(i) The
Secretary shall attend all meetings of the stockholders, the Board and (as required) committees of the Board and shall record the proceedings
of such meetings in books to be kept for that purpose. The Secretary shall give, or cause to be given, notice of all meetings of the
stockholders and special meetings of the Board and shall perform such other duties as may be prescribed by the Board, the Chairman of
the Board, Chief Executive Officer or President. The Secretary shall have custody of the corporate seal of the Corporation and the Secretary,
or any Assistant Secretary, shall have authority to affix the same to any instrument requiring it, and when so affixed, it may be attested
by his or her signature or by the signature of such Assistant Secretary. The Board may give general authority to any other officer to
affix the seal of the Corporation and to attest the affixing thereof by his or her signature.
(ii) The
Secretary shall keep, or cause to be kept, at the principal executive office of the Corporation or at the office of the Corporation’s
transfer agent or registrar, if one has been appointed, a stock ledger, or duplicate stock ledger, showing the names of the stockholders
and their addresses, the number and classes of shares held by each and, with respect to certificated shares, the number and date of certificates
issued for the same and the number and date of certificates cancelled.
(f) Assistant
Secretaries. The Assistant Secretary or, if there be more than one, the Assistant Secretaries in the order determined by the Board
shall, in the absence (or inability or refusal to act) of the Secretary, perform the duties and have the powers of the Secretary.
(g) Chief
Financial Officer. The Chief Financial Officer shall perform all duties commonly incident to that office (including, without limitation,
the care and custody of the funds and securities of the Corporation, which from time to time may come into the Chief Financial Officer’s
hands and the deposit of the funds of the Corporation in such banks or trust companies as the Board, the Chief Executive Officer or the
President may authorize).
(h) Treasurer.
The Treasurer shall, in the absence (or inability or refusal to act) of the Chief Financial Officer, perform the duties and exercise
the powers of the Chief Financial Officer.
Section 6.02 Term
of Office; Removal; Vacancies. The elected officers of the Corporation shall be appointed by the Board and shall hold office until
their successors are duly elected and qualified by the Board or until their earlier death, resignation, retirement, disqualification,
or removal from office. Any officer may be removed, with or without cause, at any time by the Board. Any officer appointed by the Chief
Executive Officer or President may also be removed, with or without cause, by the Chief Executive Officer or President, as the case may
be, unless the Board otherwise provides. Any vacancy occurring in any elected office of the Corporation may be filled by the Board. Any
vacancy occurring in any office appointed by the Chief Executive Officer or President may be filled by the Chief Executive Officer, or
President, as the case may be, unless the Board then determines that such office shall thereupon be elected by the Board, in which case
the Board shall elect such officer.
Section 6.03 Other
Officers. The Board may delegate the power to appoint such other officers and agents, and may also remove such officers and
agents or delegate the power to remove same, as it shall from time to time deem necessary or desirable.
Section 6.04 Multiple
Officeholders; Stockholder and Director Officers. Any number of offices may be held by the same person unless the Certificate
of Incorporation or these By-laws otherwise provide. Officers need not be stockholders or residents of the State of Delaware.
ARTICLE VII
SHARES
Section 7.01 Certificated
and Uncertificated Shares. The shares of the Corporation may be certificated or uncertificated, subject to the sole discretion of
the Board and the requirements of the DGCL.
Section 7.02 Multiple
Classes of Stock. If the Corporation shall be authorized to issue more than one class of stock or more than one series of any
class, the Corporation shall (a) cause the powers, designations, preferences and relative, participating, optional or other special
rights of each class of stock or series thereof and the qualifications, limitations or restrictions of such preferences and/or rights
to be set forth in full or summarized on the face or back of any certificate that the Corporation issues to represent shares of such class
or series of stock or (b) in the case of uncertificated shares, within a reasonable time after the issuance or transfer of such shares,
send to the registered owner thereof a written notice containing the information required to be set forth on certificates as specified
in clause (a) above; provided, however, that, except as otherwise provided by applicable law, in lieu of the foregoing requirements,
there may be set forth on the face or back of such certificate or, in the case of uncertificated shares, on such written notice a statement
that the Corporation will furnish without charge to each stockholder who so requests the powers, designations, preferences and relative,
participating, optional or other special rights of each class of stock or series thereof and the qualifications, limitations or restrictions
of such preferences or rights.
Section 7.03 Signatures.
Each certificate representing capital stock of the Corporation shall be signed by or in the name of the Corporation by (a) the Chairman
of the Board, Chief Executive Officer, the President or a Vice President and (b) the Treasurer, an Assistant Treasurer, the Secretary
or an Assistant Secretary of the Corporation. Any or all the signatures on the certificate may be a facsimile. In case any officer, transfer
agent or registrar who has signed or whose facsimile signature has been placed upon a certificate shall have ceased to be such officer,
transfer agent or registrar before such certificate is issued, such certificate may be issued by the Corporation with the same effect
as if such person were such officer, transfer agent or registrar on the date of issue.
Section 7.04 Consideration
and Payment for Shares.
(a) Subject
to applicable law and the Certificate of Incorporation, shares of stock may be issued for such consideration, having in the case of shares
with par value a value not less than the par value thereof, and to such persons, as determined from time to time by the Board. The consideration
may consist of any tangible or intangible property or any benefit to the Corporation including cash, promissory notes, services performed,
contracts for services to be performed or other securities, or any combination thereof.
(b) Subject
to applicable law and the Certificate of Incorporation, shares may not be issued until the full amount of the consideration has been paid,
unless upon the face or back of each certificate issued to represent any partly paid shares of capital stock or upon the books and records
of the Corporation in the case of partly paid uncertificated shares, there shall have been set forth the total amount of the consideration
to be paid therefor and the amount paid thereon up to and including the time said certificate representing certificated shares or said
uncertificated shares are issued.
Section 7.05 Lost,
Destroyed or Wrongfully Taken Certificates.
(a) If
an owner of a certificate representing shares claims that such certificate has been lost, destroyed or wrongfully taken, the Corporation
shall issue a new certificate representing such shares or such shares in uncertificated form if the owner: (i) requests such a new
certificate before the Corporation has notice that the certificate representing such shares has been acquired by a protected purchaser;
(ii) if requested by the Corporation, delivers to the Corporation a bond sufficient to indemnify the Corporation against any claim
that may be made against the Corporation on account of the alleged loss, wrongful taking or destruction of such certificate or the issuance
of such new certificate or uncertificated shares; and (iii) satisfies other reasonable requirements imposed by the Corporation.
(b) If
a certificate representing shares has been lost, apparently destroyed or wrongfully taken, and the owner fails to notify the Corporation
of that fact within a reasonable time after the owner has notice of such loss, apparent destruction or wrongful taking and the Corporation
registers a transfer of such shares before receiving notification, the owner shall be precluded from asserting against the Corporation
any claim for registering such transfer or a claim to a new certificate representing such shares or such shares in uncertificated form.
Section 7.06 Transfer
of Stock.
(a) If
a certificate representing shares of the Corporation is presented to the Corporation with an endorsement requesting the registration
of transfer of such shares or an instruction is presented to the Corporation requesting the registration of transfer of uncertificated
shares, the Corporation shall register the transfer as requested if:
(i) in
the case of certificated shares, the certificate representing such shares has been surrendered;
(ii) (A) with
respect to certificated shares, the endorsement is made by the person specified by the certificate as entitled to such shares; (B) with
respect to uncertificated shares, an instruction is made by the registered owner of such uncertificated shares; or (C) with respect
to certificated shares or uncertificated shares, the endorsement or instruction is made by any other appropriate person or by an agent
who has actual authority to act on behalf of the appropriate person;
(iii) the
Corporation has received a guarantee of signature of the person signing such endorsement or instruction or such other reasonable assurance
that the endorsement or instruction is genuine and authorized as the Corporation may request;
(iv) the
transfer does not violate any restriction on transfer imposed by the Corporation that is enforceable in accordance with Section 7.08(a);
and
(v) such
other conditions for such transfer as shall be provided for under applicable law have been satisfied.
(b) Whenever
any transfer of shares shall be made for collateral security and not absolutely, the Corporation shall so record such fact in the entry
of transfer if, when the certificate for such shares is presented to the Corporation for transfer or, if such shares are uncertificated,
when the instruction for registration of transfer thereof is presented to the Corporation, both the transferor and transferee request
the Corporation to do so.
Section 7.07 Registered
Stockholders. Before due presentment for registration of transfer of a certificate representing shares of the Corporation or of an
instruction requesting registration of transfer of uncertificated shares, the Corporation may treat the registered owner as the person
exclusively entitled to inspect for any proper purpose the stock ledger and the other books and records of the Corporation, vote such
shares, receive dividends or notifications with respect to such shares and otherwise exercise all the rights and powers of the owner
of such shares, except that a person who is the beneficial owner of such shares (if held in a voting trust or by a nominee on behalf
of such person) may, upon providing documentary evidence of beneficial ownership of such shares and satisfying such other conditions
as are provided under applicable law, may also so inspect the books and records of the Corporation.
Section 7.08 Effect
of the Corporation’s Restriction on Transfer.
(a) A
written restriction on the transfer or registration of transfer of shares of the Corporation or on the amount of shares of the Corporation
that may be owned by any person or group of persons, if permitted by the DGCL and noted conspicuously on the certificate representing
such shares or, in the case of uncertificated shares, contained in a notice, offering circular or prospectus sent by the Corporation
to the registered owner of such shares within a reasonable time prior to or after the issuance or transfer of such shares, may be enforced
against the holder of such shares or any successor or transferee of the holder including an executor, administrator, trustee, guardian
or other fiduciary entrusted with like responsibility for the person or estate of the holder.
(b)
A restriction imposed by the Corporation on the transfer or the registration of shares of the Corporation or on the amount of shares
of the Corporation that may be owned by any person or group of persons, even if otherwise lawful, is ineffective against a person
without actual knowledge of such restriction unless: (i) the shares are certificated and such restriction is noted
conspicuously on the certificate; or (ii) the shares are uncertificated and such restriction was contained in a notice,
offering circular or prospectus sent by the Corporation to the registered owner of such shares within a reasonable time prior to or
after the issuance or transfer of such shares.
Section 7.09 Regulations.
The Board shall have power and authority to make such additional rules and regulations, subject to any applicable requirement of
law, as the Board may deem necessary and appropriate with respect to the issue, transfer or registration of transfer of shares of stock
or certificates representing shares. The Board may appoint one or more transfer agents or registrars and may require for the validity
thereof that certificates representing shares bear the signature of any transfer agent or registrar so appointed.
ARTICLE VIII
INDEMNIFICATION
Section 8.01 Right
to Indemnification. To the fullest extent permitted by applicable law, as the same exists or may hereafter be amended, the Corporation
shall indemnify and hold harmless each person who was or is made a party or is threatened to be made a party to or is otherwise involved
in any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (hereinafter
a “proceeding”), by reason of the fact that he or she is or was a director or officer of the Corporation or, while
a director or officer of the Corporation, is or was serving at the request of the Corporation as a director, officer, employee or agent
of another corporation or of a partnership, joint venture, trust, other enterprise or nonprofit entity, including service with respect
to an employee benefit plan (hereinafter an “Indemnitee”), whether the basis of such proceeding is alleged action
in an official capacity as a director, officer, employee or agent, or in any other capacity while serving as a director, officer, employee
or agent, against all liability and loss suffered and expenses (including, without limitation, attorneys’ fees, judgments, fines,
ERISA excise taxes and penalties and amounts paid in settlement) reasonably incurred by such Indemnitee in connection with such proceeding;
provided, however, that, except as provided in Section 8.03 with respect to proceedings to enforce rights to indemnification,
the Corporation shall indemnify an Indemnitee in connection with a proceeding (or part thereof) initiated by such Indemnitee only if
such proceeding (or part thereof) was authorized by the Board.
Section 8.02 Right
to Advancement of Expenses. In addition to the right to indemnification conferred in Section 8.01, an Indemnitee
shall also have the right to be paid by the Corporation to the fullest extent not prohibited by applicable law the expenses (including,
without limitation, attorneys’ fees) incurred in defending or otherwise participating in any such proceeding in advance of its final
disposition (hereinafter an “advancement of expenses”); provided, however, that, if the DGCL requires, an advancement
of expenses incurred by an Indemnitee in his or her capacity as a director or officer of the Corporation (and not in any other capacity
in which service was or is rendered by such Indemnitee, including, without limitation, service to an employee benefit plan) shall be made
only upon the Corporation’s receipt of an undertaking (hereinafter an “undertaking”), by or on behalf of such
Indemnitee, to repay all amounts so advanced if it shall ultimately be determined that such Indemnitee is not entitled to be indemnified
under this ARTICLE VIII or otherwise.
Section 8.03 Right
of Indemnitee to Bring Suit. If a claim under Section 8.01 or Section 8.02 is not paid
in full by the Corporation within 60 days after a written claim therefor has been received by the Corporation, except in the case
of a claim for an advancement of expenses, in which case the applicable period shall be 20 days, the Indemnitee may at any time thereafter
bring suit against the Corporation to recover the unpaid amount of the claim. If successful in whole or in part in any such suit, or in
a suit brought by the Corporation to recover an advancement of expenses pursuant to the terms of an undertaking, the Indemnitee shall
also be entitled to be paid the expense of prosecuting or defending such suit. In (a) any suit brought by the Indemnitee to enforce
a right to indemnification hereunder (but not in a suit brought by an Indemnitee to enforce a right to an advancement of expenses) it
shall be a defense that, and (b) in any suit brought by the Corporation to recover an advancement of expenses pursuant to the terms
of an undertaking, the Corporation shall be entitled to recover such expenses upon a final judicial decision from which there is no further
right to appeal (hereinafter a “final adjudication”) that, the Indemnitee has not met any applicable standard for indemnification
set forth in the DGCL. Neither the failure of the Corporation (including its directors who are not parties to such action, a committee
of such directors, independent legal counsel, or its stockholders) to have made a determination prior to the commencement of such suit
that indemnification of the Indemnitee is proper in the circumstances because the Indemnitee has met the applicable standard of conduct
set forth in the DGCL, nor an actual determination by the Corporation (including a determination by its directors who are not parties
to such action, a committee of such directors, independent legal counsel, or its stockholders) that the Indemnitee has not met such applicable
standard of conduct, shall create a presumption that the Indemnitee has not met the applicable standard of conduct or, in the case of
such a suit brought by the Indemnitee, shall be a defense to such suit. In any suit brought by the Indemnitee to enforce a right to indemnification
or to an advancement of expenses hereunder, or by the Corporation to recover an advancement of expenses pursuant to the terms of an undertaking,
the burden of proving that the Indemnitee is not entitled to be indemnified, or to such advancement of expenses, under this ARTICLE VIII
or otherwise shall be on the Corporation.
Section 8.04 Non-Exclusivity
of Rights. The rights provided to any Indemnitee pursuant to this ARTICLE VIII shall not be exclusive
of any other right, which such Indemnitee may have or hereafter acquire under applicable law, the Certificate of Incorporation, these
By-laws, an agreement, a vote of stockholders or disinterested directors, or otherwise.
Section 8.05 Insurance.
The Corporation may maintain insurance, at its expense, to protect itself and/or any director, officer, employee or agent of the Corporation
or another corporation, partnership, joint venture, trust or other enterprise against any expense, liability or loss, whether or not the
Corporation would have the power to indemnify such person against such expense, liability or loss under the DGCL.
Section 8.06 Indemnification
of Other Persons. This ARTICLE VIII shall not limit the right of the Corporation to the extent and in the
manner authorized or permitted by law to indemnify and to advance expenses to persons other than Indemnitees. Without limiting the foregoing,
the Corporation may, to the extent authorized from time to time by the Board, grant rights to indemnification and to the advancement of
expenses to any employee or agent of the Corporation and to any other person who is or was serving at the request of the Corporation as
a director, officer, employee or agent of another corporation or of a partnership, joint venture, trust or other enterprise, including
service with respect to an employee benefit plan, to the fullest extent of the provisions of this ARTICLE VIII with respect
to the indemnification and advancement of expenses of Indemnitees under this ARTICLE VIII.
Section 8.07 Amendments.
Any repeal or amendment of this ARTICLE VIII by the Board or the stockholders of the Corporation or by changes in applicable
law, or the adoption of any other provision of these By-laws inconsistent with this ARTICLE VIII, will, to the extent
permitted by applicable law, be prospective only (except to the extent such amendment or change in applicable law permits the Corporation
to provide broader indemnification rights to Indemnitees on a retroactive basis than permitted prior thereto), and will not in any way
diminish or adversely affect any right or protection existing hereunder in respect of any act or omission occurring prior to such repeal
or amendment or adoption of such inconsistent provision; provided however, that amendments or repeals of this ARTICLE VIII shall
require the affirmative vote of the stockholders holding at least 66.7% of the voting power of all outstanding shares of capital stock
of the Corporation.
Section 8.08 Certain
Definitions. For purposes of this ARTICLE VIII, (a) references to “other enterprise”
shall include any employee benefit plan; (b) references to “fines” shall include any excise taxes assessed on
a person with respect to an employee benefit plan; (c) references to “serving at the request of the Corporation”
shall include any service that imposes duties on, or involves services by, a person with respect to any employee benefit plan, its participants,
or beneficiaries; and (d) a person who acted in good faith and in a manner such person reasonably believed to be in the interest
of the participants and beneficiaries of an employee benefit plan shall be deemed to have acted in a manner “not opposed to the
best interest of the Corporation” for purposes of Section 145 of the DGCL.
Section 8.09 Contract
Rights. The rights provided to Indemnitees pursuant to this ARTICLE VIII shall be contract rights and such
rights shall continue as to an Indemnitee who has ceased to be a director, officer, agent or employee and shall inure to the benefit of
the Indemnitee’s heirs, executors and administrators.
Section 8.10 Severability.
If any provision or provisions of this ARTICLE VIII shall be held to be invalid, illegal or unenforceable for any reason
whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this ARTICLE VIII shall
not in any way be affected or impaired thereby; and (b) to the fullest extent possible, the provisions of this ARTICLE VIII (including,
without limitation, each such portion of this ARTICLE VIII containing any such provision held to be invalid, illegal
or unenforceable) shall be construed so as to give effect to the intent manifested by the provision held invalid, illegal or unenforceable.
ARTICLE IX
MISCELLANEOUS
Section 9.01 Place
of Meetings. If the place of any meeting of stockholders, the Board or committee of the Board for which notice is required under
these By-laws is not designated in the notice of such meeting, such meeting shall be held at the principal business office of the Corporation;
provided, however, if the Board has, in its sole discretion, determined that a meeting shall not be held at any place, but instead shall
be held by means of remote communication pursuant to Section 9.05 hereof, then such meeting shall not be held at
any place.
Section 9.02 Fixing
Record Dates.
(a) In
order that the Corporation may determine the stockholders entitled to notice of any meeting of stockholders or any adjournment thereof,
the Board may fix a record date, which shall not precede the date upon which the resolution fixing the record date is adopted by the Board,
and which record date shall not be more than 60 nor less than 10 days before the date of such meeting. If the Board so fixes a date,
such date shall also be the record date for determining the stockholders entitled to vote at such meeting unless the Board determines,
at the time it fixes such record date, that a later date on or before the date of the meeting shall be the date for making such determination.
If no record date is fixed by the Board, the record date for determining stockholders entitled to notice of and to vote at a meeting of
stockholders shall be at the close of business on the business day next preceding the day on which notice is given, or, if notice is waived,
at the close of business on the business day next preceding the day on which the meeting is held. A determination of stockholders of record
entitled to notice of or to vote at a meeting of stockholders shall apply to any adjournment of the meeting; provided, however, that the
Board may fix a new record date for the adjourned meeting, and in such case shall also fix as the record date for stockholders entitled
to notice of such adjourned meeting the same or an earlier date as that fixed for determination of stockholders entitled to vote in accordance
with the foregoing provisions of this Section 9.02(a) at the adjourned meeting.
(b) In
order that the Corporation may determine the stockholders entitled to receive payment of any dividend or other distribution or allotment
of any rights or the stockholders entitled to exercise any rights in respect of any change, conversion or exchange of stock, or for the
purpose of any other lawful action, the Board may fix a record date, which record date shall not precede the date upon which the resolution
fixing the record date is adopted, and which record date shall be not more than 60 days prior to such action. If no record date is
fixed, the record date for determining stockholders for any such purpose shall be at the close of business on the day on which the Board
adopts the resolution relating thereto.
Section 9.03 Means
of Giving Notice.
(a) Notice
to Directors. Whenever under applicable law, the Certificate of Incorporation or these By-laws notice is required to be given to
any director, such notice shall be given either (i) in writing and sent by mail, or by a nationally recognized delivery service,
(ii) by means of facsimile telecommunication or other form of electronic transmission, or (iii) by oral notice given personally
or by telephone. A notice to a director will be deemed given as follows: (i) if given by hand delivery, orally, or by telephone,
when actually received by the director, (ii) if sent through the United States mail, when deposited in the United States mail, with
postage and fees thereon prepaid, addressed to the director at the director’s address appearing on the records of the Corporation,
(iii) if sent for next day delivery by a nationally recognized overnight delivery service, when deposited with such service, with
fees thereon prepaid, addressed to the director at the director’s address appearing on the records of the Corporation, (iv) if
sent by facsimile telecommunication, when sent to the facsimile transmission number for such director appearing on the records of the
Corporation, (v) if sent by electronic mail, when sent to the electronic mail address for such director appearing on the records
of the Corporation, or (vi) if sent by any other form of electronic transmission, when sent to the address, location or number (as
applicable) for such director appearing on the records of the Corporation.
(b) Notice
to Stockholders. Whenever under applicable law, the Certificate of Incorporation or these By-laws notice is required to be given
to any stockholder, such notice may be given (i) in writing and sent either by hand delivery, through the United States mail, or
by a nationally recognized overnight delivery service for next day delivery, or (ii) by means of a form of electronic transmission
consented to by the stockholder, to the extent permitted by, and subject to the conditions set forth in Section 232 of the DGCL.
A notice to a stockholder shall be deemed given as follows: (i) if given by hand delivery, when actually received by the stockholder,
(ii) if sent through the United States mail, when deposited in the United States mail, with postage and fees thereon prepaid, addressed
to the stockholder at the stockholder’s address appearing on the stock ledger of the Corporation, (iii) if sent for next day
delivery by a nationally recognized overnight delivery service, when deposited with such service, with fees thereon prepaid, addressed
to the stockholder at the stockholder’s address appearing on the stock ledger of the Corporation, and (iv) if given by a form
of electronic transmission consented to by the stockholder to whom the notice is given and otherwise meeting the requirements set forth
above, (A) if by facsimile transmission, when directed to a number at which the stockholder has consented to receive notice, (B) if
by electronic mail, when directed to an electronic mail address at which the stockholder has consented to receive notice, (C) if
by a posting on an electronic network together with separate notice to the stockholder of such specified posting, upon the later of (1) such
posting and (2) the giving of such separate notice, and (D) if by any other form of electronic transmission, when directed
to the stockholder. A stockholder may revoke such stockholder’s consent to receiving notice by means of electronic communication
by giving written notice of such revocation to the Corporation. Any such consent shall be deemed revoked if (1) the Corporation
is unable to deliver by electronic transmission two consecutive notices given by the Corporation in accordance with such consent and
(2) such inability becomes known to the Secretary or an Assistant Secretary or to the Corporation’s transfer agent, or other
person responsible for the giving of notice; provided, however, the inadvertent failure to treat such inability as a revocation shall
not invalidate any meeting or other action.
(c) Electronic
Transmission. “Electronic transmission” means any form of communication, not directly involving the physical transmission
of paper, that creates a record that may be retained, retrieved and reviewed by a recipient thereof, and that may be directly reproduced
in paper form by such a recipient through an automated process, including but not limited to transmission by telex, facsimile telecommunication,
electronic mail, telegram and cablegram.
(d) Notice
to Stockholders Sharing Same Address. Without limiting the manner by which notice otherwise may be given effectively by the Corporation
to stockholders, any notice to stockholders given by the Corporation under any provision of the DGCL, the Certificate of Incorporation
or these By-laws shall be effective if given by a single written notice to stockholders who share an address if consented to by the stockholders
at that address to whom such notice is given. A stockholder may revoke such stockholder’s consent by delivering written notice
of such revocation to the Corporation. Any stockholder who fails to object in writing to the Corporation within 60 days of having
been given written notice by the Corporation of its intention to send such a single written notice shall be deemed to have consented
to receiving such single written notice.
(e) Exceptions
to Notice Requirements.
(i) Whenever
notice is required to be given, under the DGCL, the Certificate of Incorporation or these By-laws, to any person with whom communication
is unlawful, the giving of such notice to such person shall not be required and there shall be no duty to apply to any governmental authority
or agency for a license or permit to give such notice to such person. Any action or meeting that shall be taken or held without notice
to any such person with whom communication is unlawful shall have the same force and effect as if such notice had been duly given. In
the event that the action taken by the Corporation is such as to require the filing of a certificate with the Secretary of State of Delaware,
the certificate shall state, if such is the fact and if notice is required, that notice was given to all persons entitled to receive
notice except such persons with whom communication is unlawful.
(ii) Whenever
notice is required to be given by the Corporation, under any provision of the DGCL, the Certificate of Incorporation or these By-laws,
to any stockholder to whom (1) notice of two consecutive annual meetings of stockholders and all notices of stockholder meetings
or of the taking of action by written consent of stockholders without a meeting to such stockholder during the period between such two
consecutive annual meetings, or (2) all, and at least two payments (if sent by first-class mail) of dividends or interest on securities
during a 12-month period, have been mailed addressed to such stockholder at such stockholder’s address as shown on the records
of the Corporation and have been returned undeliverable, the giving of such notice to such stockholder shall not be required. Any action
or meeting that shall be taken or held without notice to such stockholder shall have the same force and effect as if such notice had
been duly given. If any such stockholder shall deliver to the Corporation a written notice setting forth such stockholder’s then
current address, the requirement that notice be given to such stockholder shall be reinstated. In the event that the action taken by
the Corporation is such as to require the filing of a certificate with the Secretary of State of Delaware, the certificate need not state
that notice was not given to persons to whom notice was not required to be given pursuant to Section 230(b) of the DGCL. The
exception in subsection (1) of the first sentence of this paragraph to the requirement that notice be given shall not be applicable
to any notice returned as undeliverable if the notice was given by electronic transmission.
Section 9.04 Waiver
of Notice. Whenever any notice is required to be given under applicable law, the Certificate of Incorporation, or these By-laws,
a written waiver of such notice, signed by the person or persons entitled to said notice, or a waiver by electronic transmission by the
person entitled to said notice, whether before or after the time stated therein, shall be deemed equivalent to such required notice.
All such waivers shall be kept with the books of the Corporation. Attendance at a meeting shall constitute a waiver of notice of such
meeting, except where a person attends for the express purpose of objecting to the transaction of any business on the ground that the
meeting was not lawfully called or convened.
Section 9.05 Meeting
Attendance via Remote Communication Equipment.
(a) Stockholder
Meetings. If authorized by the Board in its sole discretion, and subject to such guidelines and procedures as the Board may adopt,
stockholders entitled to vote at such meeting and proxy holders not physically present at a meeting of stockholders may, by means of
remote communication:
(i) participate
in a meeting of stockholders; and
(ii) be
deemed present in person and vote at a meeting of stockholders, whether such meeting is to be held at a designated place or solely by
means of remote communication, provided that (A) the Corporation shall implement reasonable measures to verify that each person
deemed present and permitted to vote at the meeting by means of remote communication is a stockholder or proxy holder, (B) the Corporation
shall implement reasonable measures to provide such stockholders and proxy holders a reasonable opportunity to participate in the meeting
and, if entitled to vote, to vote on matters submitted to the applicable stockholders, including an opportunity to read or hear the proceedings
of the meeting substantially concurrently with such proceedings, and (C) if any stockholder or proxy holder votes or takes other
action at the meeting by means of remote communication, a record of such votes or other action shall be maintained by the Corporation.
(b) Board
Meetings. Unless otherwise restricted by applicable law, the Certificate of Incorporation or these By-laws, members of the Board
or any committee thereof may participate in a meeting of the Board or any committee thereof by means of conference telephone or other
communications equipment by means of which all persons participating in the meeting can hear each other. Such participation in a meeting
shall constitute presence in person at the meeting, except where a person participates in the meeting for the express purpose of objecting
to the transaction of any business on the ground that the meeting was not lawfully called or convened.
Section 9.06 Dividends.
The Board may from time to time declare, and the Corporation may pay, dividends (payable in cash, property or shares of the Corporation’s
capital stock) on the Corporation’s outstanding shares of capital stock, subject to applicable law and the Certificate of Incorporation.
Section 9.07 Reserves.
The Board may set apart out of the funds of the Corporation available for dividends a reserve or reserves for any proper purpose and may
abolish any such reserve.
Section 9.08 Contracts
and Negotiable Instruments. Except as otherwise provided by applicable law, the Certificate of Incorporation or these By-laws,
any contract, bond, deed, lease, mortgage or other instrument may be executed and delivered in the name and on behalf of the Corporation
by such officer or officers or other employee or employees of the Corporation as the Board may from time to time authorize. Such authority
may be general or confined to specific instances as the Board may determine. The Chairman of the Board, the Chief Executive Officer, the
President, the Chief Financial Officer, the Treasurer or any Vice President may execute and deliver any contract, bond, deed, lease, mortgage
or other instrument in the name and on behalf of the Corporation. Subject to any restrictions imposed by the Board, the Chairman of the
Board, Chief Executive Officer, President, the Chief Financial Officer, the Treasurer or any Vice President may delegate powers to execute
and deliver any contract, bond, deed, lease, mortgage or other instrument in the name and on behalf of the Corporation to other officers
or employees of the Corporation under such person’s supervision and authority, it being understood, however, that any such delegation
of power shall not relieve such officer of responsibility with respect to the exercise of such delegated power.
Section 9.09 Fiscal
Year. The fiscal year of the Corporation shall be fixed by the Board.
Section 9.10 Seal.
The Board may adopt a corporate seal, which shall be in such form as the Board determines. The seal may be used by causing it or a facsimile
thereof to be impressed, affixed or otherwise reproduced.
Section 9.11 Books
and Records. The books and records of the Corporation may be kept within or outside the State of Delaware at such place or
places as may from time to time be designated by the Board.
Section 9.12 Resignation.
Any director, committee member or officer may resign by giving notice thereof in writing or by electronic transmission to the Chairman
of the Board, the Chief Executive Officer, the President or the Secretary. The resignation shall take effect at the time it is delivered
unless the resignation specifies a later effective date or an effective date determined upon the happening of an event or events. Unless
otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective.
Section 9.13 Surety
Bonds. Such officers, employees and agents of the Corporation (if any) as the Chairman of the Board, Chief Executive Officer,
President or the Board may direct, from time to time, shall be bonded for the faithful performance of their duties and for the restoration
to the Corporation, in case of their death, resignation, retirement, disqualification or removal from office, of all books, papers, vouchers,
money and other property of whatever kind in their possession or under their control belonging to the Corporation, in such amounts and
by such surety companies as the Chairman of the Board, Chief Executive Officer, President or the Board may determine. The premiums on
such bonds shall be paid by the Corporation and the bonds so furnished shall be in the custody of the Secretary.
Section 9.14 Securities
of Other Corporations. Powers of attorney, proxies, waivers of notice of meeting, consents in writing and other instruments
relating to securities owned by the Corporation may be executed in the name of and on behalf of the Corporation by the Chairman of the
Board, Chief Executive Officer, President, any Vice President or any officers authorized by the Board. Any such officer, may, in the name
of and on behalf of the Corporation, take all such action as any such officer may deem advisable to vote in person or by proxy at any
meeting of security holders of any corporation in which the Corporation may own securities, or to consent in writing, in the name of the
Corporation as such holder, to any action by such corporation, and at any such meeting or with respect to any such consent shall possess
and may exercise any and all rights and power incident to the ownership of such securities and which, as the owner thereof, the Corporation
might have exercised and possessed. The Board may from time to time confer like powers upon any other person or persons.
Section 9.15 Amendments.
The Board shall have the power to adopt, amend, alter or repeal the By-laws. The affirmative vote of a majority of the Board shall be
required to adopt, amend, alter or repeal the By-laws. The By-laws also may be adopted, amended, altered or repealed by the stockholders;
provided, however, that in addition to any vote of the holders of any class or series of capital stock of the Corporation required by
applicable law or the Certificate of Incorporation, the affirmative vote of the holders of at least a majority of the voting power (except
as otherwise provided in Section 8.07) of all outstanding shares of capital stock of the Corporation entitled to vote
generally in the election of directors, voting together as a single class, shall be required for the stockholders to adopt, amend, alter
or repeal the By-laws.
Exhibit 4.1
SPECIMEN UNIT CERTIFICATE
[__________] UNITS
U-[●]
SEE REVERSE FOR CERTAIN DEFINITIONS
CUSIP: [_]
FTAC
EMERALD ACQUISITION CORP.
UNITS CONSISTING OF ONE SHARE OF CLASS A COMMON
STOCK AND ONE HALF OF ONE
WARRANT TO PURCHASE ONE SHARE OF CLASS A COMMON STOCK
THIS CERTIFIES THAT ______________ is the
owner of _______________ Units.
Each Unit (“Unit”)
consists of one (1) share of Class A common stock, $0.0001 par value per share (the “Common Stock”), of
FTAC Emerald Acquisition Corp. a Delaware corporation (the “Corporation”), and one half of one warrant (each,
a “Warrant”). Each whole Warrant entitles the holder to purchase one (1) share of Common Stock for
$11.50 per share (subject to adjustment). Each Warrant will become exercisable thirty (30) days after the Corporation’s consummation
of a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination, involving the
Corporation and one or more businesses (a “Business Combination”), and will expire unless exercised before
5:00 p.m., New York City Time, on the date that is five (5) years after the date on which the Corporation consummates its initial
Business Combination, or earlier upon redemption of all outstanding shares of Common Stock included in the Units sold in the initial
public offering by the Corporation of the Units (the “IPO”) or liquidation of the Corporation (the “Expiration
Date”). The Warrant included in this Unit will not become exercisable and will expire worthless in the event the Corporation
fails to consummate a Business Combination within 18 months from the date of the completion of the Corporation’s IPO, or 21 months
from the closing of the IPO if we have executed a letter of intent, agreement in principle or definitive agreement for our Business Combination
within 18 months from the closing of this offering but have not completed our Business Combination within such 18-month period.
The shares of Common Stock and Warrants comprising
the Units represented by this certificate are not transferable separately prior to the 52nd day following the date of the final prospectus
relating to the IPO unless Citigroup Global Markets Inc., acting as representative of the underwriters, elects to allow separate trading
earlier, subject to the Corporation’s filing of a Current Report on Form 8-K with the Securities and Exchange Commission containing
an audited balance sheet reflecting the Corporation’s receipt of the gross proceeds of the offering and issuing a press release
announcing when separate trading will begin. The terms of the Warrants are governed by a Warrant Agreement, dated as of ,
2021, between the Corporation and Continental Stock Transfer & Trust Company, as Warrant Agent, and are subject to the terms and provisions
contained therein, all of which terms and provisions the holder of this certificate consents to by acceptance hereof. Copies of the Warrant
Agreement are on file at the office of the Warrant Agent at 1 State Street Plaza, New York, New York 10004, and are available to any Warrant
holder on written request and without cost.
This certificate is not valid unless countersigned
by the Transfer Agent and Registrar of the Corporation.
Witness the facsimile signature of its duly authorized
officers.
Transfer Agent:
FTAC
EMERALD ACQUISITION CORP.
The Corporation will furnish without charge to
each stockholder who so requests, a statement of the powers, designations, preferences and relative, participating, optional or other
special rights of each class of shares or series thereof of the Corporation and the qualifications, limitations, or restrictions of such
preferences and/or rights. This certificate and the Units represented hereby are issued and shall be held subject to the terms and conditions
applicable to the securities underlying and comprising the Units, including, as applicable, the Certificate of Incorporation and all amendments
thereto, the Warrant Agreement and the resolutions of the Board of Directors providing for the issue of securities (copies of which may
be obtained from the secretary of the Corporation), to all of which the holder(s) of this certificate by acceptance hereof assent(s).
The following abbreviations, when used in the
inscription on the face of this certificate, shall be construed as though they were written out in full according to applicable laws or
regulations:
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TEN COM
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—
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as tenants in common
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UNIF GIFT MIN ACT
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—
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Custodian
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(Cust)
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(Minor)
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TEN ENT
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—
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as tenants by the entireties
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under Uniform Gifts to Minors Act
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JT TEN
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—
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as joint tenants with right of survivorship and not as tenants in common
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(State)
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Additional abbreviations may also be used though
not in the above list.
For
value received, ________________ hereby sells, assigns and transfers unto
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(PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER(S) OF ASSIGNEE(S))
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(PLEASE PRINT OR TYPEWRITE NAME(S) AND ADDRESS(ES), INCLUDING ZIP CODE, OF ASSIGNEE(S))
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_________________ Units represented by the
within Certificate, and do(es) hereby irrevocably constitute(s) and appoint(s) _______________________________ attorney to transfer the
said Units on the books of the within named Corporation with full power of substitution in the premises.
Dated
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Notice:
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The signature(s) to this assignment must correspond with the name(s) as written upon the face of the certificate in every particular, without alteration or enlargement or any change whatever.
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Signature(s) Guaranteed:
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THE SIGNATURE(S) MUST BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM, PURSUANT TO S.E.C. RULE 17Ad-15).
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As more fully described in the Corporation’s
final prospectus relating to the IPO dated
, 2021, the holder(s) of this certificate shall be entitled to receive a pro-rata portion of funds from the trust account referred to
therein only in the event that (a) the Corporation redeems the shares of Common Stock sold in its initial public offering because it
does not acquire, engage in a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination,
involving the Corporation and one or more businesses (a “Business Combination”) within 18 months from the date
of the completion of the Corporation’s IPO, or 21 months from the closing of the IPO if we have executed a letter of intent,
agreement in principle or definitive agreement for our Business Combination within 18 months from the closing of this offering but
have not completed our Business Combination within such 18-month period, or (b) if the holder(s) seek(s) to redeem for cash his,
her or its respective shares of Common Stock sold in the Corporation’s initial public offering (“Public Shares”)
in connection with (i) a tender offer (or proxy, solely in the event the Corporation is required to seek stockholder approval of the
proposed Business Combination) setting forth the details of a proposed Business Combination or (ii) the Corporation seeking stockholder
approval of an amendment to its Certificate of Incorporation to modify the timing or substance of its obligation to repurchase 100% of
Public Shares if the Corporation does not complete an initial Business Combination within the 18 month timeframe, or 21 months from
the closing of the IPO if we have executed a letter of intent, agreement in principle or definitive agreement for our Business Combination
within 18 months from the closing of this offering but have not completed our Business Combination within such 18-month period.
In no other circumstances shall the holder(s) have any right or interest of any kind in or to the trust account.
Exhibit 4.2
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NUMBER _____
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______________ SHARES
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SEE REVERSE FOR CERTAIN DEFINITIONS
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CUSIP [_]
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FTAC EMERALD ACQUISITION CORP.
A DELAWARE CORPORATION
CLASS A COMMON STOCK
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This Certifies that
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is the owner of
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FULLY PAID AND NON-ASSESSABLE SHARES OF CLASS A
COMMON STOCK, $0.0001 PAR VALUE
PER SHARE EACH, OF
FTAC EMERALD ACQUISITION CORP
(THE “CORPORATION”)
transferable on the books of the Corporation in
person or by duly authorized attorney upon surrender of this certificate properly endorsed.
The Corporation must redeem all of its shares
of Class A common stock and liquidate if it is unable to complete an initial business combination within 18 months, or 21 months
from the closing of the IPO if we have executed a letter of intent, agreement in principle or definitive agreement for our Business Combination
within 18 months from the closing of this offering but have not completed our Business Combination within such 18-month period
(excluding any overallotment exercise), as more fully described in the Corporation’s final prospectus relating to the initial
public offering of its Class A common stock as a part of the units being offered by it dated ,
2021.
This certificate is not valid unless countersigned
by the Transfer Agent and registered by the Registrar of the Corporation.
Witness the facsimile signatures of its duly authorized
officers.
Transfer Agent:
FTAC EMERALD ACQUISITION CORP
The Corporation will furnish without charge to
each stockholder who so requests the powers, designations, preferences and relative, participating, optional or other special rights of
each class of shares or series thereof of the Corporation and the qualifications, limitations, or restrictions of such preferences and/or
rights. This certificate and the shares represented hereby are issued and shall be held subject to all the provisions of the Certificate
of Incorporation and all amendments thereto and resolutions of the Board of Directors providing for the issue of securities (copies of
which may be obtained from the secretary of the Corporation), to all of which the holder(s) of this certificate by acceptance hereof assent(s).
The following abbreviations, when used in the
inscription on the face of this certificate, shall be construed as though they were written out in full according to applicable laws or
regulations:
TEN
COM
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—
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as tenants in common
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UNIF GIFT MIN
ACT
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—
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Custodian
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(Cust)
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(Minor)
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TEN ENT
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—
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as tenants by the entireties
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under Uniform Gifts to Minors Act
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JT TEN
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—
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as joint tenants with right of survivorship and not as tenants in common
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(State)
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Additional abbreviations may also be used though
not in the above list.
For value received,
________________________ hereby sell(s), assign(s) and transfer(s) unto
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(PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER(S) OF ASSIGNEE(S))
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(PLEASE PRINT OR TYPEWRITE NAME(S) AND ADDRESS(ES), INCLUDING ZIP CODE, OF ASSIGNEE(S))
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________________ Shares of the capital stock
represented by the within Certificate, and do(es) hereby irrevocably constitute(s) and appoint(s) __________________________ attorney
to transfer the said shares on the books of the within named Corporation with full power of substitution in the premises
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Dated:
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NOTICE: THE SIGNATURE(S) TO THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME(S) AS WRITTEN UPON THE FACE OF THE CERTIFICATE IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATEVER.
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Signature(s) Guaranteed By:
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THE SIGNATURE(S) MUST BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM, PURSUANT TO S.E.C. RULE 17Ad-15).
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As more fully described in the Corporation’s
final prospectus dated ,
2021, the holder(s) of this certificate shall be entitled to receive a pro-rata portion of funds from the trust account referred to therein
only in the event that (a) the Corporation redeems the shares of Class A Common Stock sold in its initial public offering because it
does not acquire, engage in a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination,
involving the Corporation and one or more businesses (a “Business Combination”) within 18 months from the date
of the completion of the Corporation’s initial public offering, or 21 months from the closing of the IPO if we have executed
a letter of intent, agreement in principle or definitive agreement for our Business Combination within 18 months from the closing
of this offering but have not completed our Business Combination within such 18-month period (excluding any overallotment exercise),
or (b) the holder(s) seek(s) to redeem for cash his, her or its respective shares of Class A Common Stock sold in the Corporation’s
initial public offering (“Public Shares”) in connection with (i) a tender offer (or proxy, solely in the event
the Corporation is required to seek stockholder approval of the proposed Business Combination) setting forth the details of a proposed
Business Combination or (ii) the Corporation seeking stockholder approval of an amendment to its Certificate of Incorporation to modify
the timing or substance of its obligation to repurchase 100% of Public Shares if the Corporation does not complete an initial Business
Combination within the 18 month timeframe (or 21 month timeframe if extended at our sponsor’s option). In no other circumstances
shall the holder(s) have any right or interest of any kind in or to the trust account.
Exhibit 4.4
WARRANT AGREEMENT
between
FTAC EMERALD ACQUISITION CORP.
and
CONTINENTAL STOCK TRANSFER & TRUST COMPANY
Dated , 2021
THIS WARRANT AGREEMENT (this
“Agreement”), dated as of __________, 2021, is by and between FTAC Emerald Acquisition Corp., a Delaware corporation
(the “Company”), and Continental Stock Transfer & Trust Company, a New York limited purpose trust company,
as warrant agent (in such capacity, the “Warrant Agent”, also referred to herein as the “Transfer
Agent”).
WHEREAS, the Company has entered
into that certain Unit Subscription Agreement, dated [•], with Emerald ESG Sponsor, LLC, a Delaware limited
liability company (together with Emerald ESG Advisors, LLC, the “Sponsor, pursuant to which the Sponsor will purchase
an aggregate of 890,000 Units (as defined below) (or up to 990,000 Units if the underwriter’s overallotment option is exercised
in full) (“Placement Units”) for an aggregate purchase price of $8,900,000 (or $9,900,000 if the underwriter’s
overallotment option is exercised in full), each Unit consisting of one share of Common Stock (as defined below) (“Placement
Shares”) and one-half of one warrant to purchase one Placement Share (the “Placement Warrants”)
of the Company, and, in connection therewith, has determined to issue and deliver up to 445,000 Placement Warrants (or 495,000 Placement
Warrants if the underwriter’s overallotment option is exercised in full) bearing the legend set forth in Exhibit B hereto,
to be sold simultaneously with the closing of the Offering (as defined below). Each Placement Warrant entitles the holder thereof to purchase
one Placement Share at a price of $11.50 per share, subject to adjustment as described herein; and
WHEREAS, in order to finance
the Company’s transaction costs in connection with an intended initial merger, share exchange, asset acquisition, share purchase,
reorganization or similar business combination, involving the Company and one or more businesses (a “Business Combination”),
the Sponsor, members of the Company’s management team or any of their respective affiliates may, but are not obligated to, loan
the Company funds as the Company may require, of which up to $2,000,000 of such loans may be convertible into Units at a price of $10.00
per Unit, each Unit consisting of one share of Common Stock and one-half of one warrant to purchase one share of Common Stock (the “Loan
Warrants”); and
WHEREAS, the Company is
engaged in an initial public offering (the “Offering”) of units of the Company’s equity securities,
each such unit comprised of one share of Common Stock and one-half of one Public Warrant (as defined below) (the “Public
Units”, and together with the Placement Units, the “Units”) and, in connection therewith,
has determined to issue and deliver up to 12,650,000 redeemable warrants (including up to 1,650,000 redeemable warrants subject to
the Over-allotment Option) to public investors in the Offering (the “Public Warrants” and, together with
the Placement Warrants and the Loan Warrants, the “Warrants”). Each whole Warrant entitles the holder
thereof to purchase one share of Class A common stock of the Company, par value $0.0001 per share (the “Common
Stock”), for $11.50 per share, subject to adjustment as described herein. Only whole Warrants are exercisable. A
holder of the Public Warrants will not be able to exercise any fraction of a Warrant; and
WHEREAS, the Company has filed
with the Securities and Exchange Commission (the “Commission”) a registration statement on Form S-1, No. [______]
(the “Registration Statement”) and prospectus (the “Prospectus”), for the registration,
under the Securities Act of 1933, as amended (the “Securities Act”), of the Units, the Public Warrants and the
Common Stock included in the Units; and
WHEREAS, the Company desires
the Warrant Agent to act on behalf of the Company, and the Warrant Agent is willing to so act, in connection with the issuance, registration,
transfer, exchange, redemption and exercise of the Warrants; and
WHEREAS, the Company desires
to provide for the form and provisions of the Warrants, the terms upon which they shall be issued and exercised, and the respective rights,
limitation of rights, and immunities of the Company, the Warrant Agent and the holders of the Warrants; and
WHEREAS, all acts and things
have been done and performed which are necessary to make the Warrants, when executed on behalf of the Company and countersigned by or
on behalf of the Warrant Agent (if a physical certificate is issued), as provided herein, the valid, binding and legal obligations of
the Company, and to authorize the execution and delivery of this Agreement.
NOW, THEREFORE, in consideration of the mutual
agreements herein contained, the parties hereto agree as follows:
1. Appointment of Warrant Agent. The Company hereby appoints the Warrant Agent to act as agent for the Company for the
Warrants, and the Warrant Agent hereby accepts such appointment and agrees to perform the same in accordance with the terms and conditions
set forth in this Agreement.
2. Warrants.
2.1 Form of Warrant. Each Warrant shall initially be issued in registered form only.
2.2 Effect of Countersignature. If a physical certificate is issued, unless and until countersigned by the Warrant
Agent pursuant to this Agreement, a certificated Warrant shall be invalid and of no effect and may not be exercised by the holder thereof.
2.3 Registration.
2.3.1 Warrant Register. The Warrant Agent shall maintain books (the “Warrant Register”),
for the registration of original issuance and the registration of transfer of the Warrants. Upon the initial issuance of the Warrants
in book-entry form, the Warrant Agent shall issue and register the Warrants in the names of the respective holders thereof in such denominations
and otherwise in accordance with instructions delivered to the Warrant Agent by the Company. Ownership of beneficial interests in the
Public Warrants shall be shown on, and the transfer of such ownership shall be effected through, records maintained by institutions that
have accounts with The Depository Trust Company (the “Depositary”) (such institution, with respect to a Warrant
in its account, a “Participant”).
If the Depositary subsequently
ceases to make its book-entry settlement system available for the Public Warrants, the Company may instruct the Warrant Agent regarding
making other arrangements for book-entry settlement. In the event that the Public Warrants are not eligible for, or it is no longer necessary
to have the Public Warrants available in, book-entry form, the Warrant Agent shall provide written instructions to the Depositary to deliver
to the Warrant Agent for cancellation each book-entry Public Warrant, and the Company shall instruct the Warrant Agent to deliver to the
Depositary definitive certificates in physical form evidencing such Warrants (“Definitive Warrant Certificates”)
which shall be in the form annexed hereto as Exhibit A.
Physical certificates, if
issued, shall be signed by, or bear the facsimile signature of, the Chairman of the Board, the President, Chief Executive Officer, Chief
Financial Officer, Secretary or other principal officer of the Company. In the event the person whose facsimile signature has been placed
upon any Warrant shall have ceased to serve in the capacity in which such person signed the Warrant before such Warrant is issued, it
may be issued with the same effect as if he or she had not ceased to be such at the date of issuance.
2.3.2 Registered Holder. Prior to due presentment for registration of transfer of any Warrant, the Company and the
Warrant Agent may deem and treat the person in whose name such Warrant is registered in the Warrant Register (the “Registered
Holder”) as the absolute owner of such Warrant and of each Warrant represented thereby (notwithstanding any notation of
ownership or other writing on any physical certificate made by anyone other than the Company or the Warrant Agent), for the purpose of
any exercise thereof, and for all other purposes, and neither the Company nor the Warrant Agent shall be affected by any notice to the
contrary.
2.4 Detachability
of Warrants. The Common Stock and Public Warrants comprising the Units shall begin separate trading on the 52nd day following
the date of the Prospectus or, if such 52nd day is not on a day, other than a Saturday, Sunday or federal holiday, on which banks in
New York City are generally open for normal business (a “Business Day”), then on the immediately
succeeding Business Day following such date, or earlier (the “Detachment Date”) with the consent of
Citigroup Global Markets Inc., acting as representative of the several underwriters, but in no event shall the Common Stock and the
Public Warrants comprising the Units be separately traded until (A) the Company has filed a Current Report on Form 8-K with the
Commission containing an audited balance sheet reflecting the receipt by the Company of the gross proceeds of the Offering,
including the proceeds then received by the Company from the exercise by the underwriters of their right to purchase additional
Units in the Offering (the “Over-allotment Option”), if the Over-allotment Option is exercised prior to
the filing of the Form 8-K, and (B) the Company issues a press release announcing when such separate trading shall begin.
2.5 Fractional Warrants. The Company shall not issue fractional Warrants other than as part of the Units, each of which
is comprised of one share of Common Stock and one-half of one whole Public Warrant. If, upon the detachment of Public Warrants from the
Units or otherwise, a holder of Warrants would be entitled to receive a fractional Warrant, the Company shall round down to the nearest
whole number the number of Warrants to be issued to such holder.
2.6 Placement Warrants; Loan Warrants.
2.6.1 The Placement Warrants and the Loan Warrants shall be identical to the Public Warrants, except that so long as they are
held by the Sponsor or any of its Permitted Transferees (as defined below) the Placement Warrants and the Loan Warrants, including the
shares of Common Stock issuable upon exercise of the Placement Warrants and the Loan Warrants, may not be transferred, assigned or sold
until thirty (30) days after the completion by the Company of an initial Business Combination; provided, however, that the
Placement Warrants and the Loan Warrants and any shares of Common Stock issued upon exercise of the Placement Warrants and the Loan Warrants
may be transferred by the holders thereof:
(a) to the Sponsor, the Company’s officers or directors, any affiliates or family members of any of the Company’s
officers or directors, any members or partners of the Sponsor or their affiliates, any affiliates of the Sponsor or any employees of such
affiliates;
(b) in the case of an individual, by gift to a member of the individual’s immediate family, or to a trust, the beneficiary
of which is a member of one of the individual’s immediate family, or an affiliate of such person, or to a charitable organization;
(c) in the case of an individual, by virtue of laws of descent and distribution upon death of the individual;
(d) in the case of an individual, pursuant to a qualified domestic relations order;
(e) by private sales or transfers made in connection with the completion of the Company’s Business Combination at prices
no greater than the price at which the securities, were originally purchased;
(f) by virtue of the laws of Delaware, pursuant to the Sponsor’s organizational documents upon liquidation or dissolution
of our Sponsor;
(g) to the Company for no value for cancellation in connection with the completion of its initial Business Combination;
(h) in the event of the Company’s liquidation prior to the Company’s completion of its initial Business Combination;
or
(i) in
the event of the Company’s completion of a liquidation, merger, stock exchange or other similar transaction which results in all
of the Company’s stockholders having the right to exchange their Common Stock for cash, securities or other property subsequent
to the completion of the Company’s initial Business Combination;
provided, however, that in each
case (except for clauses (g), (h) or (i) or with the prior written consent of the Company) prior to such registration for transfer, the
Warrant Agent shall be presented with written documentation pursuant to which each permitted transferee (the “Permitted Transferees”)
must enter into a written agreement with the Company agreeing to be bound by these transfer restrictions.
2.6.2 Each
of the Loan Warrants shall be identical to the Placement Warrants.
3. Terms and Exercise of Warrants.
3.1 Warrant Price. Each whole Warrant shall entitle the Registered Holder thereof, subject to the provisions of such
Warrant and of this Agreement, to purchase from the Company the number of shares of Common Stock stated therein, at the price of $11.50
per share, subject to the adjustments provided in Section 4 hereof and in the last sentence of this Section 3.1. The term
“Warrant Price” as used in this Agreement shall mean the price per share (including in cash or by payment of
Warrants pursuant to a “cashless exercise,” to the extent permitted hereunder) described in the prior sentence at which Common
Stock may be purchased at the time a Warrant is exercised. The Company in its sole discretion may lower the Warrant Price at any time
prior to the Expiration Date (as defined below) for a period of not less than twenty (20) Business Days (unless otherwise required by
the Commission, any national securities exchange on which the Warrants are listed or by applicable law), provided that the Company
shall provide at least twenty (20) days prior written notice of such reduction to Registered Holders of the Warrants and, provided
further that any such reduction shall be identical among all of the Warrants.
3.2 Duration
of Warrants. A Warrant may be exercised only during the period (the “Exercise Period”) (A) commencing
on the later of: (i) the date that is thirty (30) days after the first date on which the Company completes a Business Combination,
and (ii) the date that is twelve (12) months from the date of the closing of the Offering, and (B) terminating at the earliest to
occur of (x) 5:00 p.m., New York City time on the date that is five (5) years after the date on which the Company completes its
initial Business Combination, (y) the liquidation of the Company in accordance with the Company’s governing documents, if the
Company fails to complete a Business Combination, and (z) with respect to a redemption pursuant to Section 6.1 hereof, 5:00
p.m., New York City time on the Redemption Date (as defined below) as provided in Section 6.2 hereof (the
“Expiration Date”); provided, however, that the exercise of any Warrant shall be subject to
the satisfaction of any applicable conditions, as set forth in subsection 3.3.2 below, with respect to an effective
registration statement or a valid exemption therefrom being available. Except with respect to the right to receive the Redemption
Price (as defined below) in the event of a redemption (as set forth in Section 6 hereof), each Warrant not exercised on or
before the Expiration Date shall become void, and all rights thereunder and all rights in respect thereof under this Agreement shall
cease at 5:00 p.m. New York City time on the Expiration Date. The Company in its sole discretion may extend the duration of the
Warrants by delaying the Expiration Date; provided that the Company shall provide at least twenty (20) days prior written
notice of any such extension to Registered Holders of the Warrants and, provided further that any such extension shall be
identical in duration among all the Warrants.
3.3 Exercise of Warrants.
3.3.1 Payment. Subject to the provisions of the Warrant and this Agreement, a Warrant may be exercised by the Registered
Holder thereof by delivering to the Warrant Agent at its corporate trust department (i) the Definitive Warrant Certificate evidencing
the Warrants to be exercised, or, in the case of a Warrant represented by a book-entry, the Warrants to be exercised (the “Book-Entry
Warrants”) on the records of the Depositary to an account of the Warrant Agent at the Depositary designated for such
purposes in writing by the Warrant Agent to the Depositary from time to time, (ii) an election to purchase (“Election to Purchase”)
any Common Stock pursuant to the exercise of a Warrant, properly completed and executed by the Registered Holder on the reverse of the
Definitive Warrant Certificate or, in the case of a Book-Entry Warrant, properly delivered by the Participant in accordance with the Depositary’s
procedures, and (iii) the payment in full of the Warrant Price for each share of Class A Common Stock as to which the Warrant is exercised
and any and all applicable taxes due in connection with the exercise of the Warrant, the exchange of the Warrant for the Common Stock
and the issuance of such Common Stock, as follows:
(a) in lawful money of the United States, in good certified check or good bank draft payable to the order of the Warrant Agent;
(b) on a cashless basis, as provided in Section 7.4 hereof.
3.3.2 Issuance
of Common Stock on Exercise. As soon as practicable after the exercise of any Warrant and the clearance of the funds in payment
of the Warrant Price (if payment is pursuant to subsection 3.3.1(a)), the Company shall issue to the Registered Holder of
such Warrant a book-entry position or certificate, as applicable, for the number of shares of Common Stock to which he, she or it is
entitled, registered in such name or names as may be directed by him, her or it on the register of members of the Company, and if
such Warrant shall not have been exercised in full, a new book-entry position or countersigned Warrant, as applicable, for the
number of shares as to which such Warrant shall not have been exercised. Notwithstanding the foregoing, the Company shall not be
obligated to deliver any Common Stock pursuant to the exercise of a Warrant and shall have no obligation to settle such Warrant
exercise unless a registration statement under the Securities Act with respect to the Common Stock underlying the Public Warrants is
then effective and a prospectus relating thereto is current, subject to the Company’s satisfying its obligations under Section
7.4 or a valid exemption from registration is available. No Warrant shall be exercisable and the Company shall not be obligated
to issue Common Stock upon exercise of a Warrant unless the Common Stock issuable upon such Warrant exercise have been registered,
qualified or deemed to be exempt from registration or qualification under the securities laws of the state of residence of the
Registered Holder of the Warrants. Subject to Section 4.6 of this Agreement, a Registered Holder of Warrants may exercise its
Warrants only for a whole number of shares of Common Stock. The Company may require holders of Public Warrants to settle the Warrant
on a “cashless basis” pursuant to Section 7.4. If, by reason of any exercise of Warrants on a “cashless
basis”, the holder of any Warrant would be entitled, upon the exercise of such Warrant, to receive a fractional interest in a
share of Common Stock, the Company shall round down to the nearest whole number, the number of shares of Common Stock to be issued
to such holder.
3.3.3 Valid Issuance. All Common Stock issued upon the proper exercise of a Warrant in conformity with this Agreement and
the governing documents of the Company, shall be validly issued as fully paid and nonassessable.
3.3.4 Date of Issuance. Each person in whose name any book-entry position or certificate, as applicable, for Common Stock
is issued and who is registered in the register of members of the Company shall for all purposes be deemed to have become the holder of
record of such Common Stock on the date on which the Warrant, or book-entry position representing such Warrant, was surrendered and payment
of the Warrant Price was made, irrespective of the date of delivery of such certificate in the case of a certificated Warrant, except
that, if the date of such surrender and payment is a date when the register of members of the Company or book-entry system of the Warrant
Agent are closed, such person shall be deemed to have become the holder of such shares at the close of business on the next succeeding
date on which the share transfer books or book-entry system are open.
3.3.5 Maximum
Percentage. A holder of a Warrant may notify the Company in writing in the event it elects to be subject to the provisions
contained in this subsection 3.3.5; however, no holder of a Warrant shall be subject to this subsection 3.3.5
unless he, she or it makes such election. If the election is made by a holder, the Warrant Agent shall not effect the exercise of
the holder’s Warrant, and such holder shall not have the right to exercise such Warrant, to the extent that after giving
effect to such exercise, such person (together with such person’s affiliates), to the Warrant Agent’s actual knowledge,
would beneficially own in excess of 9.8% (the “Maximum Percentage”) of the Common Stock outstanding
immediately after giving effect to such exercise. For purposes of the foregoing sentence, the aggregate number of shares of Common
Stock beneficially owned by such person and its affiliates shall include the number of shares of Common Stock issuable upon exercise
of the Warrant with respect to which the determination of such sentence is being made, but shall exclude Common Stock that would be
issuable upon (x) exercise of the remaining, unexercised portion of the Warrant beneficially owned by such person and its affiliates
and (y) exercise or conversion of the unexercised or unconverted portion of any other securities of the Company beneficially owned
by such person and its affiliates (including, without limitation, any convertible notes or convertible preferred shares or warrants)
subject to a limitation on conversion or exercise analogous to the limitation contained herein. Except as set forth in the preceding
sentence, for purposes of this paragraph, beneficial ownership shall be calculated in accordance with Section 13(d) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”). For purposes of the Warrant, in
determining the number of outstanding shares of Common Stock, the holder may rely on the number of outstanding shares of Common
Stock as reflected in (1) the Company’s most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report
on Form 8-K or other public filing with the Commission as the case may be, (2) a more recent public announcement by the Company or
(3) any other notice by the Company or Continental Stock Transfer & Trust Company, as transfer agent (in such capacity, the
“Transfer Agent”), setting forth the number of shares of Common Stock outstanding. For any reason at any
time, upon the written request of the holder of the Warrant, the Company shall, within two (2) Business Days, confirm orally and in
writing to such holder the number of shares of Common Stock then outstanding. In any case, the number of issued and outstanding
shares of Common Stock shall be determined after giving effect to the conversion or exercise of equity securities of the Company by
the holder and its affiliates since the date as of which such number of issued and outstanding shares of Common Stock was reported.
By written notice to the Company, the holder of a Warrant may from time to time increase or decrease the Maximum Percentage
applicable to such holder to any other percentage specified in such notice; provided, however, that any such increase
shall not be effective until the sixty-first (61st) day after such notice is delivered to the Company.
4. Adjustments.
4.1 Share Capitalizations.
4.1.1 Sub-Divisions. If after the date hereof, and subject to the provisions of Section 4.6 below, the number of
issued and outstanding shares of Common Stock is increased by a share capitalization, or by a sub-division of Common Stock or other similar
event, then, on the effective date of such share capitalization, sub-division or similar event, the number of shares of Common Stock issuable
on exercise of each Warrant shall be increased in proportion to such increase in the issued and outstanding shares of Common Stock. A
rights offering to all or substantially all holders of Common Stock entitling holders to purchase Common Stock at a price less than the
“Historical Fair Market Value” (as defined below) shall be deemed a capitalization of a number of shares of Common Stock equal
to the product of (i) the number of shares of Common Stock actually sold in such rights offering (or issuable under any other equity securities
sold in such rights offering that are convertible into or exercisable for shares of Common Stock) multiplied by (ii) one (1) minus the
quotient of (x) the price per share of Common Stock paid in such rights offering divided by (y) the Historical Fair Market Value. For
purposes of this subsection 4.1.1, (i) if the rights offering is for securities convertible into or exercisable for Common Stock,
in determining the price payable for Common Stock, there shall be taken into account any consideration received for such rights, as well
as any additional amount payable upon exercise or conversion and (ii) “Historical Fair Market Value” means the volume weighted
average price of the Common Stock as reported during the ten (10) trading day period ending on the trading day prior to the first date
on which the Common Stock trades on the applicable exchange or in the applicable market, regular way, without the right to receive such
rights. No shares of Common Stock shall be issued at less than their par value.
4.1.2 Extraordinary Dividends. If the Company, at any time while the Warrants are outstanding and unexpired, pays to all
or substantially all holders of Common Stock a dividend or makes a distribution in cash, securities or other assets to the holders of
Common Stock on account of such Common Stock (or other shares into which the Warrants are convertible), other than (a) as described in
subsection 4.1.1 above, (b)
Ordinary Cash Dividends
(as defined below), (c) to satisfy the redemption rights of the holders of Common Stock in connection with a proposed initial
Business Combination, (d) to satisfy the redemption rights of the holders of Common Stock in connection with a stockholder vote to
amend the Company’s amended and restated certificate of incorporation (i) to modify the substance or timing of the
Company’s obligation to allow redemption in connection with the Company’s initial Business Combination or to redeem 100%
of the Company’s public shares if the Company does not complete its initial Business Combination within the time period
required by the Company’s amended and restated certificate of incorporation, as amended from time to time, or (ii) with
respect to any other provision relating to the rights of holders of Common Stock, (e) as a result of the repurchase of Common Stock
by the Company if a proposed initial Business Combination is presented to the stockholders of the Company for approval or (f) in
connection with the redemption of public shares upon the failure of the Company to complete its initial Business Combination and any
subsequent distribution of its assets upon its liquidation (any such non-excluded event being referred to herein as an
“Extraordinary Dividend”), then the Warrant Price shall be decreased, effective immediately after the
effective date of such Extraordinary Dividend, by the amount of cash and/or the fair market value (as determined by the
Company’s board of directors (the “Board”), in good faith) of any securities or other assets paid on
each share of Common Stock in respect of such Extraordinary Dividend. For purposes of this subsection 4.1.2,
“Ordinary Cash Dividends” means any cash dividend or cash distribution which, when combined on a per share
basis, with the per share amounts of all other cash dividends and cash distributions paid on Common Stock during the 365-day period
ending on the date of declaration of such dividend or distribution (as adjusted to appropriately reflect any of the events referred
to in other subsections of this Section 4 and excluding cash dividends or cash distributions that resulted in an adjustment to the
Warrant Price or to the number of shares of Common Stock issuable on exercise of each Warrant) to the extent it does not exceed
$0.50 (being 5% of the offering price of the Units in the Offering).
4.2 Aggregation of Shares. If after the date hereof, and subject to the provisions of Section 4.6 hereof,
the number of issued and outstanding shares of Common Stock is decreased by a consolidation, combination, reverse stock split or reclassification
of shares of Common Stock or other similar event, then, on the effective date of such consolidation, combination, reverse stock split,
reclassification or similar event, the number of shares of Common Stock issuable on exercise of each Warrant shall be decreased in proportion
to such decrease in issued and outstanding shares of Common Stock.
4.3 Adjustments in Exercise Price. Whenever the number of shares of Common Stock purchasable upon the exercise of the
Warrants is adjusted, as provided in subsection 4.1.1 or Section 4.2 above, the Warrant Price shall be adjusted (to the
nearest cent) by multiplying such Warrant Price immediately prior to such adjustment by a fraction (x) the numerator of which shall be
the number of shares of Common Stock purchasable upon the exercise of the Warrants immediately prior to such adjustment, and (y) the denominator
of which shall be the number of shares of Common Stock so purchasable immediately thereafter.
4.4 Raising of
Capital in Connection with the Initial Business Combination. If (x) the Company issues additional shares of Common Stock or
equity-linked securities for capital raising purposes in connection with the closing of its initial Business Combination at an issue
price or effective issue price of less than $9.20 per share of Common Stock (with such issue price or effective issue price to be
determined in good faith by the Board and, in the case of any such issuance to the Sponsor or their affiliates, without taking into
account any shares of Class B common stock of the Company, par value $0.0001 per share (the “Class B Common
Stock”), held by the Sponsor or such affiliates, as applicable, prior to such issuance (the “Newly Issued
Price”), (y) the aggregate gross proceeds from such issuances represent more than 60% of the total equity proceeds, and
interest thereon, available for the funding of the Company’s initial Business Combination on the date of the completion of the
Company’s initial Business Combination (net of redemptions), and (z) the volume-weighted average trading price of the Common
Stock during the twenty (20) trading day period starting on the trading day prior to the day on which the Company completes its
initial Business Combination (such price, the “Market Value”) is below $9.20 per share, the Warrant Price will be
adjusted (to the nearest cent) to be equal to 115% of the higher of the Market Value and the Newly Issued Price, the $18.00 per
share redemption trigger prices described in Section 6.1 will be adjusted (to the nearest cent) to be equal to 180% of the
higher of the Market Value and the Newly Issued Price.
4.5 Replacement of Securities upon Reorganization, etc. In case of any reclassification or reorganization of the issued
and outstanding Common Stock (other than a change under Section 4.1 or Section 4.2 hereof or that solely affects the par
value of such Common Stock), or in the case of any merger or consolidation of the Company with or into another corporation (other than
a consolidation or merger in which the Company is the continuing corporation and that does not result in any reclassification or reorganization
of the issued and outstanding Common Stock), or in the case of any sale or conveyance to another corporation or entity of the assets or
other property of the Company as an entirety or substantially as an entirety in connection with which the Company is dissolved, the holders
of the Warrants shall thereafter have the right to purchase and receive, upon the basis and upon the terms and conditions specified in
the Warrants and in lieu of the Common Stock of the Company immediately theretofore purchasable and receivable upon the exercise of the
rights represented thereby, the kind and amount of shares of stock or other securities or property (including cash) receivable upon such
reclassification, reorganization, merger or consolidation, or upon a dissolution following any such sale or transfer, that the holder
of the Warrants would have received if such holder had exercised his, her or its Warrant(s) immediately prior to such event (the “Alternative
Issuance”); provided, however, that if the holders of the Common Stock were entitled to exercise a right of election
as to the kind or amount of securities, cash or other assets receivable upon such consolidation or merger, then the kind and amount of
securities, cash or other assets constituting the Alternative Issuance for which each Warrant shall become exercisable shall be deemed
to be the weighted average of the kind and amount received per share by the holders of the Common Stock in such consolidation or merger
that affirmatively make such election. If any reclassification or reorganization also results in a change in Common Stock covered by subsection
4.1.1, then such adjustment shall be made pursuant to subsection 4.1.1 or Sections 4.2, 4.3 and this Section
4.4. The provisions of this Section 4.4 shall similarly apply to successive reclassifications, reorganizations, mergers or
consolidations, sales or other transfers. In no event will the Warrant Price be reduced to less than the par value per share issuable
upon exercise of such Warrant.
4.6 Notices of Changes in Warrant. Upon every adjustment of the Warrant Price or the number of shares issuable
upon exercise of a Warrant, the Company shall give written notice thereof to the Warrant Agent, which notice shall state the Warrant Price
resulting from such adjustment and the increase or decrease, if any, in the number of shares purchasable at such price upon the exercise
of a Warrant, setting forth in reasonable detail the method of calculation and the facts upon which such calculation is based. Upon the
occurrence of any event specified in Sections 4.1, 4.2, 4.3, 4.4 or 4.5, the Company shall give written
notice of the occurrence of such event to each holder of a Warrant, at the last address set forth for such holder in the Warrant Register,
of the record date or the effective date of the event. Failure to give such notice, or any defect therein, shall not affect the legality
or validity of such event.
4.7 No
Fractional Shares. Notwithstanding any provision contained in this Agreement to the contrary, the Company shall not issue fractional
shares upon the exercise of Warrants. If, by reason of any adjustment made pursuant to this Section 4, the holder of any Warrant
would be entitled, upon the exercise of such Warrant, to receive a fractional interest in a share, the Company shall, upon such exercise,
round down to the nearest whole number the number of shares of Common Stock to be issued to such holder.
4.8 Form of Warrant. The form of Warrant need not be changed because of any adjustment pursuant to this Section 4,
and Warrants issued after such adjustment may state the same Warrant Price and the same number of shares as is stated in the Warrants
initially issued pursuant to this Agreement; provided, however, that the Company may at any time in its sole discretion
make any change in the form of Warrant that the Company may deem appropriate and that does not affect the substance thereof, and any Warrant
thereafter issued or countersigned, whether in exchange or substitution for an outstanding Warrant or otherwise, may be in the form as
so changed.
4.9 Other Events. In case any event shall occur affecting the Company as to which none of the provisions of the preceding
subsections of this Section 4 are strictly applicable, but which would require an adjustment to the terms of the Warrants in order
to (i) avoid an adverse impact on the Warrants and (ii) effectuate the intent and purpose of this Section 4, then, in each such
case, the Company shall appoint a firm of independent registered public accountants, investment banking or other appraisal firm of recognized
national standing, which shall give its opinion as to whether or not any adjustment to the rights represented by the Warrants is necessary
to effectuate the intent and purpose of this Section 4 and, if they determine that an adjustment is necessary, the terms of such
adjustment; provided, however, that under no circumstances shall the Warrants be adjusted pursuant to this Section 4.9
as a result of any issuance of securities in connection with a Business Combination. The Company shall adjust the terms of the Warrants
in a manner that is consistent with any adjustment recommended in such opinion.
4.10 No Adjustment. For the avoidance of doubt, no adjustment shall be made to the terms of the Warrants solely as a result
of an adjustment to the conversion ratio of the Class B Common Stock into shares of Common Stock or the conversion of the Class B Common
Stock into shares of Common Stock, in each case, pursuant to the Company’s amended and restated certificate of incorporation, as
amended from time to time.
5. Transfer and Exchange of Warrants.
5.1 Registration of Transfer. The Warrant Agent shall register the transfer, from time to time, of any outstanding
Warrant upon the Warrant Register, upon surrender of such Warrant for transfer, in the case of a certificated Warrant, properly endorsed
with signatures properly guaranteed and accompanied by appropriate instructions for transfer. Upon any such transfer, a new Warrant representing
an equal aggregate number of Warrants shall be issued and the old Warrant shall be cancelled by the Warrant Agent. In the case of certificated
Warrants, the Warrants so cancelled shall be delivered by the Warrant Agent to the Company from time to time upon request.
5.2 Procedure
for Surrender of Warrants. Warrants may be surrendered to the Warrant Agent, together with a written request for exchange or transfer,
and thereupon the Warrant Agent shall issue in exchange therefor one or more new Warrants as requested by the Registered Holder of the
Warrants so surrendered, representing an equal aggregate number of Warrants; provided, however, that except as otherwise
provided herein or with respect to any Book-Entry Warrant, each Book-Entry Warrant may be transferred only in whole and only to the Depositary,
to another nominee of the Depositary, to a successor depository, or to a nominee of a successor depository; provided further,
however that in the event that a Warrant surrendered for transfer bears a restrictive legend (as in the case of the Placement
Warrants and the Loan Warrants), the Warrant Agent shall not cancel such Warrant and issue new Warrants in exchange thereof until the
Warrant Agent has received an opinion of counsel for the Company stating that such transfer may be made and indicating whether the new
Warrants must also bear a restrictive legend.
5.3 Fractional Warrants. The Warrant Agent shall not be required to effect any registration of transfer or exchange which
shall result in the issuance of a warrant certificate or book-entry position for a fraction of a warrant, except as part of the Units.
5.4 Service Charges. No service charge shall be made for any exchange or registration of transfer of Warrants.
5.5 Warrant Execution and Countersignature. The Warrant Agent is hereby authorized to countersign and to deliver,
in accordance with the terms of this Agreement, the Warrants required to be issued pursuant to the provisions of this Section 5,
and the Company, whenever required by the Warrant Agent, shall supply the Warrant Agent with Warrants duly executed on behalf of the Company
for such purpose.
5.6 Transfer of Warrants. Prior to the Detachment Date, the Public Warrants may be transferred or exchanged only together
with the Unit in which such Warrant is included, and only for the purpose of effecting, or in conjunction with, a transfer or exchange
of such Unit. Furthermore, each transfer of a Unit on the register relating to such Units shall operate also to transfer the Warrants
included in such Unit. Notwithstanding the foregoing, the provisions of this Section 5.6 shall have no effect on any transfer of
Warrants on and after the Detachment Date.
6. Redemption.
6.1 Redemption
of Warrants. Not less than all of the outstanding Warrants may be redeemed, at the option of the Company, at any time during the
Exercise Period, at the office of the Warrant Agent, upon notice to the Registered Holders of the Warrants, as described in Section
6.2 below, at a Redemption Price of $0.01 per Warrant, provided that (a) the Reference Value (as defined below) equals or
exceeds $18.00 per share (subject to adjustment in compliance with Section 4 hereof) and (b) there is an effective
registration statement covering the Common Stock issuable upon exercise of the Warrants, and a current prospectus relating thereto,
available throughout the 30-day Redemption Period (as defined in Section 6.2 below) or the Company has elected to require the
exercise of Warrants on a “cashless basis” pursuant to Section 7.4; provided, however, that if and when
the Public Warrants become redeemable by the Company, the Company may not exercise such redemption right if the issuance of shares
of Common Stock upon exercise of the Public Warrants is not exempt from registration or qualification under applicable state blue
sky laws or the Company is unable to effect such registration or qualification.
6.2 Date Fixed for, and Notice of, Redemption; Redemption Price; Reference Value. In the event that the Company elects
to redeem the Warrants pursuant to Section 6.1, the Company shall fix a date for the redemption (the “Redemption Date”).
Notice of redemption shall be mailed by first class mail, postage prepaid, by the Company not less than thirty (30) days prior to the
Redemption Date (the “30-day Redemption Period”) to the Registered Holders of the Warrants to be redeemed at
their last addresses as they shall appear on the registration books. Any notice mailed in the manner herein provided shall be conclusively
presumed to have been duly given whether or not the Registered Holder received such notice. As used in this Agreement,
(a) “Redemption Price” shall mean the price per Warrant at which any Warrants are redeemed pursuant
to Section 6.1 and
(b) “Reference Value” shall mean the last reported sales price of the Common Stock for any twenty
(20) trading days within the thirty (30) trading-day period ending on the third trading day prior to the date on which notice of the redemption
is given.
6.3 Exercise After Notice of Redemption. The Warrants may be exercised at any time after notice of redemption shall have
been given by the Company pursuant to Section 6.2 hereof and prior to the Redemption Date. On and after the Redemption Date, the
record holder of the Warrants shall have no further rights except to receive, upon surrender of the Warrants, the Redemption Price.
7. Other Provisions Relating to Rights of Holders of Warrants.
7.1 No Rights as Stockholder. A Warrant does not entitle the Registered Holder thereof to any of the rights of
a stockholder of the Company, including, without limitation, the right to receive dividends, or other distributions, exercise any preemptive
rights to vote or to consent or to receive notice as stockholders in respect of the meetings of stockholders or the election of directors
of the Company or any other matter.
7.2 Lost, Stolen, Mutilated, or Destroyed Warrants. If any Warrant is lost, stolen, mutilated, or destroyed, the Company
and the Warrant Agent may on such terms as to indemnity or otherwise as they may in their discretion impose (which shall, in the case
of a mutilated Warrant, include the surrender thereof), issue a new Warrant of like denomination, tenor, and date as the Warrant so lost,
stolen, mutilated, or destroyed. Any such new Warrant shall constitute a substitute contractual obligation of the Company, whether or
not the allegedly lost, stolen, mutilated, or destroyed Warrant shall be at any time enforceable by anyone.
7.3 Reservation of Common Stock. The Company shall at all times reserve and keep available a number of its authorized
but unissued shares of Common Stock that shall be sufficient to permit the exercise in full of all outstanding Warrants issued pursuant
to this Agreement.
7.4 Registration
of Common Stock; Cashless Exercise at Company’s Option.
7.4.1 Registration of the Common Stock. The Company agrees that as soon as practicable, but in no event later than
twenty (20) Business Days after the closing of its initial Business Combination, it shall use its best efforts to file with the Commission
a registration statement for the registration, under the Securities Act, of the Common Stock issuable upon exercise of the Warrants. The
Company shall use its best efforts to cause the same to become effective and to maintain the effectiveness of such registration statement,
and a current prospectus relating thereto, until the expiration or redemption of the Warrants in accordance with the provisions of this
Agreement. If any such registration statement has not been declared effective by the sixtieth (60th) Business Day following the closing
of the Business Combination, holders of the Warrants shall have the right, during the period beginning on the sixty-first (61st) Business
Day after the closing of the Business Combination and ending upon such registration statement being declared effective by the Commission,
and during any other period when the Company shall fail to have maintained an effective registration statement covering the issuance of
the Common Stock issuable upon exercise of the Warrants, to exercise such Warrants on a “cashless basis,” by exchanging the
Warrants (in accordance with Section 3(a)(9) of the Securities Act or another exemption) for that number of shares of Common Stock equal
to the quotient obtained by dividing (x) the product of the number of shares of Common Stock underlying the Warrants, multiplied by the
excess of the “Fair Market Value” (as defined below) less the Warrant Price by (y) the Fair Market Value. Solely for purposes
of this subsection 7.4.1, “Fair Market Value” shall mean the volume-weighted average price of the Common Stock as reported
during the ten (10) trading day period ending on the trading day prior to the date that notice of exercise is received by the Warrant
Agent from the holder of such Warrants or its securities broker or intermediary. The date that notice of “cashless exercise”
is received by the Warrant Agent shall be conclusively determined by the Warrant Agent. In connection with the “cashless exercise”
of a Warrant, the Company shall, upon request, provide the Warrant Agent with an opinion of counsel for the Company (which shall be an
outside law firm with securities law experience) stating that (i) the exercise of the Warrants on a “cashless basis” in accordance
with this subsection 7.4.1 is not required to be registered under the Securities Act and (ii) the Common Stock issued upon such
exercise shall be freely tradable under United States federal securities laws by anyone who is not an affiliate (as such term is defined
in Rule 144 under the Securities Act) of the Company and, accordingly, shall not be required to bear a restrictive legend. Except as provided
in subsection 7.4.2, for the avoidance of doubt, unless and until all of the Warrants have been exercised or have expired, the
Company shall continue to be obligated to comply with its registration obligations under the first three sentences of this subsection
7.4.1.
7.4.2 Cashless
Exercise at Company’s Option. If the Common Stock is at the time of any exercise of a Public Warrant not listed on a
national securities exchange such that it satisfies the definition of a “covered security” under Section 18(b)(1) of the
Securities Act, the Company may, at its option, (i) require holders of Warrants who exercise Warrants to exercise such Warrants on a
“cashless basis” in accordance with Section 3(a)(9) of the Securities Act as described in subsection 7.4.1 and
(ii) in the event the Company so elects, the Company shall (x) not be required to file or maintain in effect a registration
statement for the registration, under the Securities Act, of the Common Stock issuable upon exercise of the Warrants,
notwithstanding anything in this Agreement to the contrary, and (y) use its commercially reasonable efforts to register or qualify
for sale the Common Stock issuable upon exercise of the Warrant under applicable blue sky laws of the state of the residence of the
holder to the extent an exemption is not available.
8. Concerning the Warrant Agent and Other Matters.
8.1 Payment of Taxes. The Company shall from time to time promptly pay all taxes and charges that may be imposed upon
the Company or the Warrant Agent in respect of the issuance or delivery of Common Stock upon the exercise of the Warrants, but the Company
shall not be obligated to pay any transfer taxes in respect of the Warrants or such shares.
8.2 Resignation, Consolidation, or Merger of Warrant Agent.
8.2.1 Appointment of Successor Warrant Agent. The Warrant Agent, or any successor to it hereafter appointed, may resign
its duties and be discharged from all further duties and liabilities hereunder after giving sixty (60) days’ notice in writing to
the Company. If the office of the Warrant Agent becomes vacant by resignation or incapacity to act or otherwise, the Company shall appoint
in writing a successor Warrant Agent in place of the Warrant Agent. If the Company shall fail to make such appointment within a period
of thirty (30) days after it has been notified in writing of such resignation or incapacity by the Warrant Agent or by the holder of a
Warrant (who shall, with such notice, submit his, her or its Warrant for inspection by the Company), then the holder of any Warrant may
apply to the Supreme Court of the State of New York for the County of New York for the appointment of a successor Warrant Agent at the
Company’s cost. Any successor Warrant Agent, whether appointed by the Company or by such court, shall be a corporation organized
and existing under the laws of the State of New York, in good standing and having its principal office in the Borough of Manhattan, City
and State of New York, and authorized under such laws to exercise corporate trust powers and subject to supervision or examination by
federal or state authority. After appointment, any successor Warrant Agent shall be vested with all the authority, powers, rights, immunities,
duties, and obligations of its predecessor Warrant Agent with like effect as if originally named as Warrant Agent hereunder, without any
further act or deed; but if for any reason it becomes necessary or appropriate, the predecessor Warrant Agent shall execute and deliver,
at the expense of the Company, an instrument transferring to such successor Warrant Agent all the authority, powers, and rights of such
predecessor Warrant Agent hereunder; and upon request of any successor Warrant Agent the Company shall make, execute, acknowledge, and
deliver any and all instruments in writing for more fully and effectually vesting in and confirming to such successor Warrant Agent all
such authority, powers, rights, immunities, duties, and obligations.
8.2.2 Notice of Successor Warrant Agent. In the event a successor Warrant Agent shall be appointed, the Company
shall give notice thereof to the predecessor Warrant Agent and the Transfer Agent for the Common Stock not later than the effective date
of any such appointment.
8.2.3 Merger or Consolidation of Warrant Agent. Any entity into which the Warrant Agent may be merged or with which
it may be consolidated or any entity resulting from any merger or consolidation to which the Warrant Agent shall be a party shall be the
successor Warrant Agent under this Agreement without any further act.
8.3 Fees
and Expenses of Warrant Agent.
8.3.1 Remuneration. The Company agrees to pay the Warrant Agent reasonable remuneration for its services as such Warrant
Agent hereunder and shall, pursuant to its obligations under this Agreement, reimburse the Warrant Agent upon demand for all expenditures
that the Warrant Agent may reasonably incur in the execution of its duties hereunder.
8.3.2 Further Assurances. The Company agrees to perform, execute, acknowledge, and deliver or cause to be performed, executed,
acknowledged, and delivered all such further and other acts, instruments, and assurances as may reasonably be required by the Warrant
Agent for the carrying out or performing of the provisions of this Agreement.
8.4 Liability of Warrant Agent.
8.4.1 Reliance on Company Statement. Whenever in the performance of its duties under this Agreement, the Warrant Agent
shall deem it necessary or desirable that any fact or matter be proved or established by the Company prior to taking or suffering any
action hereunder, such fact or matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be
conclusively proved and established by a statement signed by the Chairman of the Board, Chief Executive Officer, President or Chief Financial
Officer of the Company and delivered to the Warrant Agent. The Warrant Agent may rely upon such statement for any action taken or suffered
in good faith by it pursuant to the provisions of this Agreement.
8.4.2 Indemnity. The Warrant Agent shall be liable hereunder only for its own gross negligence, willful misconduct, fraud
or bad faith. The Company agrees to indemnify the Warrant Agent and save it harmless against any and all liabilities, including judgments,
out-of-pocket costs and reasonable outside counsel fees, for anything done or omitted by the Warrant Agent in the execution of this Agreement,
except as a result of the Warrant Agent’s gross negligence, willful misconduct, fraud or bad faith.
8.4.3 Exclusions. The Warrant Agent shall have no responsibility with respect to the validity of this Agreement or with
respect to the validity or execution of any Warrant (except its countersignature thereof). The Warrant Agent shall not be responsible
for any breach by the Company of any covenant or condition contained in this Agreement or in any Warrant. The Warrant Agent shall not
be responsible to make any adjustments required under the provisions of Section 4 hereof or responsible for the manner, method,
or amount of any such adjustment or the ascertaining of the existence of facts that would require any such adjustment; nor shall it by
any act hereunder be deemed to make any representation or warranty as to the authorization or reservation of any Common Stock to be issued
pursuant to this Agreement or any Warrant or as to whether any Common Stock shall, when issued, be valid and fully paid and nonassessable.
8.5 Acceptance of Agency. The Warrant Agent hereby accepts the agency established by this Agreement and agrees to perform
the same upon the terms and conditions herein set forth and among other things, shall account promptly to the Company with respect to
Warrants exercised and concurrently account for, and pay to the Company, all monies received by the Warrant Agent for the purchase of
Common Stock through the exercise of the Warrants.
8.6 Waiver.
The Warrant Agent has no right of set-off or any other right, title, interest or claim of any kind (“Claim”)
in, or to any distribution of, the Trust Account (as defined in that certain Investment Management Trust Agreement, dated as of the date
hereof, by and between the Company and Continental Stock Transfer & Trust Company as trustee thereunder) and hereby agrees not to
seek recourse, reimbursement, payment or satisfaction for any Claim against the Trust Account for any reason whatsoever. The Warrant
Agent hereby waives any and all Claims against the Trust Account and any and all rights to seek access to the Trust Account.
9. Miscellaneous Provisions.
9.1 Successors. All the covenants and provisions of this Agreement by or for the benefit of the Company or the Warrant
Agent shall bind and inure to the benefit of their respective successors and assigns.
9.2 Notices. Any notice, statement or demand authorized by this Agreement to be given or made by the Warrant Agent or
by the holder of any Warrant to or on the Company shall be sufficiently given when so delivered if by hand or overnight delivery or if
sent by certified mail or private courier service within five (5) days after deposit of such notice, postage prepaid, addressed (until
another address is filed in writing by the Company with the Warrant Agent), as follows:
FTAC Emerald Acquisition Corp.
2929 Arch Street, Suite 1703
Philadelphia, PA 19104
Attention:
Email:
with a copy (which shall not constitute service) to:
Reed Smith LLP
599 Lexington Avenue, 22nd Floor
New York, NY 10022
Attention: Ari Edelman
Any notice, statement or demand authorized by
this Agreement to be given or made by the holder of any Warrant or by the Company to or on the Warrant Agent shall be sufficiently given
when so delivered if by hand or overnight delivery or if sent by certified mail or private courier service within five (5) days after
deposit of such notice, postage prepaid, addressed (until another address is filed in writing by the Warrant Agent with the Company),
as follows:
Continental Stock Transfer & Trust Company
One State Street, 30th Floor
New York, NY 10004
Attention: Compliance Department
9.3 Applicable
Law; Forum. The validity, interpretation, and performance of this Agreement and of the Warrants shall be governed in all
respects by the laws of the State of New York, without giving effect to conflicts of law principles that would result in the
application of the substantive laws of another jurisdiction. The Company hereby agrees that any action, proceeding or claim against
it arising out of or relating in any way to this Agreement, including under the Securities Act, shall be brought and enforced in the
courts of the State of New York or the United States District Court for the Southern District of New York, and irrevocably submits
to such jurisdiction, which jurisdiction shall be the exclusive forum for any such action, proceeding or claim. The Company hereby
waives any objection to such exclusive jurisdiction and that such courts represent an inconvenient forum. Notwithstanding the
foregoing, (i) the provisions of this paragraph will not apply to suits brought to enforce any liability or duty created by the
Exchange Act or any other claim for which the federal district courts of the United States of America are the sole and exclusive
forum. Any person or entity purchasing or otherwise acquiring any interest in the Warrants shall be deemed to have notice of and to
have consented to the forum provisions in this Section 9.3. If any action, the subject matter of which is within the scope of the
forum provisions above, is filed in a court other than a court located within the State of New York or the United States District
Court for the Southern District of New York (a “Foreign Action”) in the name of any warrant holder, such
warrant holder shall be deemed to have consented to: (x) the personal jurisdiction of the state and federal courts located within
the State of New York or the United States District Court for the Southern District of New York in connection with any action
brought in any such court to enforce the forum provisions (an “Enforcement Action”), and (y) having
service of process made upon such warrant holder in any Enforcement Action by service upon such warrant holder’s counsel in
the Foreign Action as agent for such warrant holder.
9.4 Persons Having Rights under this Agreement. Nothing in this Agreement shall be construed to confer upon, or give
to, any person or corporation other than the parties hereto and the Registered Holders of the Warrants any right, remedy, or claim under
or by reason of this Agreement or of any covenant, condition, stipulation, promise, or agreement hereof. All covenants, conditions, stipulations,
promises, and agreements contained in this Agreement shall be for the sole and exclusive benefit of the parties hereto and their successors
and assigns and of the Registered Holders of the Warrants.
9.5 Examination of the Warrant Agreement. A copy of this Agreement shall be available at all reasonable times at the
office of the Warrant Agent in the Borough of Manhattan, City and State of New York, for inspection by the Registered Holder of any Warrant.
The Warrant Agent may require any such holder to submit such holder’s Warrant for inspection by the Warrant Agent.
9.6 Counterparts. This Agreement may be executed in any number of original or facsimile counterparts and each of such
counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same
instrument. Delivery of a signed counterpart of this Agreement by facsimile or electronic transmission shall constitute valid and sufficient
delivery thereof.
9.7 Effect of Headings. The section headings herein are for convenience only and are not part of this Agreement and shall
not affect the interpretation thereof.
9.8 Amendments.
This Agreement may be amended by the parties hereto without the consent of any Registered Holder for the purpose of (i) curing any
ambiguity or to correct any mistake, including to conform the provisions hereof to the description of the terms of the Warrants and
this Agreement set forth in the Prospectus, or defective provision contained herein, or (ii) making any amendments that are
necessary in the good faith determination of the Board (taking into account then existing market precedents for initial public
offerings of special purpose acquisition companies underwritten by bulge bracket investment banks) to allow for the Warrants to be
classified as equity in the Company’s financial statements; provided that no such amendment shall increase the Warrant Price,
shorten the Exercise Period or will, in the aggregate, materially affect the legal rights of Registered Holders of the
then-outstanding Public Warrants under this Agreement, (iii) removing or reducing the Company’s ability to redeem the Warrants
or (iv) adding or changing any provisions with respect to matters or questions arising under this Agreement as the parties may deem
necessary or desirable and that the parties deem shall not adversely affect the rights of the Registered Holders under this
Agreement, provided that in the case of this clause (iv) the approval by the Registered Holders of at least 50% of the
then-outstanding Public Warrants is required to make any change that adversely affects the legal rights of the Registered Holders of
the Public Warrants under this Agreement. The Company may amend the terms of the Public Warrants in a manner adverse to a Registered
Holder if holders of at least 50% of the then-outstanding Public Warrants approve of such amendment and, solely with respect to any
amendment to the terms of the Placement Warrants or Loan Warrants or any provision of this Agreement with respect to the Placement
Warrants or Loan Warrants, 50% of the number of the then outstanding Placement Warrants or Loan Warrants; provided that this
Agreement may be amended by the parties hereto with the vote or written consent of Registered Holders of at least 50% of the then
outstanding Placement Warrants or Loan Warrants without the consent of any other Registered Holder to provide that the Placement
Warrants or Loan Warrants (a) will remain Placement Warrants or Loan Warrants, as applicable, when transferred to any party,
including parties that are not Permitted Transferees, or (b) have the same terms as the Public Warrants, subject to any applicable
contractual restrictions or securities law restrictions. Notwithstanding the foregoing, the Company may lower the Warrant Price or
extend the duration of the Exercise Period pursuant to Sections 3.1 and 3.2, respectively, or make any amendment
necessary in the good faith determination of the Board of directors (taking into account then existing market precedents) to allow
for the Warrants to be classified as equity in the Company’s financial statements, in each case, without the consent of the
Registered Holders.
9.9 Severability. This Agreement shall be deemed severable, and the invalidity or unenforceability of any term or provision
hereof shall not affect the validity or enforceability of this Agreement or of any other term or provision hereof. Furthermore, in lieu
of any such invalid or unenforceable term or provision, the parties hereto intend that there shall be added as a part of this Agreement
a provision as similar in terms to such invalid or unenforceable provision as may be possible and be valid and enforceable.
Exhibit A Form of Warrant Certificate
Exhibit B Legend — Placement Warrants and Loan Warrants
[SIGNATURE PAGE FOLLOWS]
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed as of the date first above written.
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FTAC EMERALD ACQUISITION CORP.
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By:
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CONTINENTAL STOCK TRANSFER & TRUST COMPANY,
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as Warrant Agent
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By:
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[Signature Page to Warrant Agreement]
EXHIBIT A
Form of Warrant Certificate
[FACE]
Number
Warrants
THIS WARRANT SHALL BE VOID IF NOT EXERCISED
PRIOR TO THE EXPIRATION OF THE EXERCISE PERIOD PROVIDED FOR IN THE WARRANT AGREEMENT DESCRIBED BELOW
FTAC EMERALD ACQUISITION CORP.
Incorporated Under the Laws of the State of
Delaware
CUSIP [_____]
Warrant Certificate
This Warrant Certificate
certifies that , or registered assigns, is the registered holder of warrant(s) evidenced hereby (the “Warrants”
and each, a “Warrant”) to purchase shares of Class A common stock, $0.0001 par value (the “Common
Stock”), of FTAC Emerald Acquisition Corp., a Delaware corporation (the “Company”). Each Warrant
entitles the holder, upon exercise during the period set forth in the Warrant Agreement referred to below, to receive from the Company
that number of fully paid and non-assessable shares of Common Stock as set forth below, at the exercise price (the “Exercise
Price”) as determined pursuant to the Warrant Agreement, payable in lawful money (or through “cashless exercise”
as provided for in the Warrant Agreement) of the United States of America upon surrender of this Warrant Certificate and payment of the
Exercise Price at the office or agency of the Warrant Agent referred to below, subject to the conditions set forth herein and in the Warrant
Agreement. Defined terms used in this Warrant Certificate but not defined herein shall have the meanings given to them in the Warrant
Agreement.
Each whole Warrant is initially
exercisable for one fully paid and non-assessable share of Common Stock. No fractional shares will be issued upon exercise of any Warrant.
If, upon the exercise of Warrants, a holder would be entitled to receive a fractional interest in a share of Common Stock, the Company
will, upon exercise, round down to the nearest whole number the number of shares of Common Stock to be issued to the Warrant holder. The
number of shares of Common Stock issuable upon exercise of the Warrants is subject to adjustment upon the occurrence of certain events
as set forth in the Warrant Agreement.
The initial Exercise Price
per one share of Common Stock for any Warrant is equal to $11.50 per share. The Exercise Price is subject to adjustment upon the occurrence
of certain events as set forth in the Warrant Agreement.
Subject to the conditions
set forth in the Warrant Agreement, the Warrants may be exercised only during the Exercise Period and to the extent not exercised by the
end of such Exercise Period, such Warrants shall become void. The Warrants may be redeemed, subject to certain conditions, as set forth
in the Warrant Agreement.
Reference is hereby made to
the further provisions of this Warrant Certificate set forth on the reverse hereof and such further provisions shall for all purposes
have the same effect as though fully set forth at this place.
This Warrant Certificate shall
not be valid unless countersigned by the Warrant Agent, as such term is used in the Warrant Agreement.
This Warrant Certificate shall
be governed by and construed in accordance with the internal laws of the State of New York, without regard to conflicts of laws principles
thereof.
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FTAC EMERALD ACQUISITION CORP.
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By:
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CONTINENTAL STOCK TRANSFER & TRUST COMPANY, as Warrant Agent
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By:
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[Form of Warrant Certificate]
[Reverse]
The Warrants evidenced by
this Warrant Certificate are part of a duly authorized issue of Warrants entitling the holder on exercise to receive shares of Common
Stock and are issued or to be issued pursuant to a Warrant Agreement dated as of _____, 2021 (the “Warrant Agreement”),
duly executed and delivered by the Company to Continental Stock Transfer & Trust Company, a New York limited purpose trust company,
as warrant agent (the “Warrant Agent”), which Warrant Agreement is hereby incorporated by reference in and made
a part of this instrument and is hereby referred to for a description of the rights, limitation of rights, obligations, duties and immunities
thereunder of the Warrant Agent, the Company and the holders (the words “holders” or “holder”
meaning the Registered Holders or Registered Holder, respectively) of the Warrants. A copy of the Warrant Agreement may be obtained by
the holder hereof upon written request to the Company. Defined terms used in this Warrant Certificate but not defined herein shall have
the meanings given to them in the Warrant Agreement.
Warrants may be exercised
at any time during the Exercise Period set forth in the Warrant Agreement. The holder of Warrants evidenced by this Warrant Certificate
may exercise them by surrendering this Warrant Certificate, with the form of Election to Purchase set forth hereon properly completed
and executed, together with payment of the Exercise Price as specified in the Warrant Agreement (or through “cashless exercise”
as provided for in the Warrant Agreement) at the principal corporate trust office of the Warrant Agent. In the event that upon any exercise
of Warrants evidenced hereby the number of Warrants exercised shall be less than the total number of Warrants evidenced hereby, there
shall be issued to the holder hereof or his, her or its assignee, a new Warrant Certificate evidencing the number of Warrants not exercised.
Notwithstanding anything else
in this Warrant Certificate or the Warrant Agreement, no Warrant may be exercised unless at the time of exercise (i) a registration statement
covering the issuance of the shares of Common Stock to be issued upon exercise is effective under the Securities Act and (ii) a prospectus
thereunder relating to the shares of Common Stock is current, except through “cashless exercise” as provided
for in the Warrant Agreement.
The Warrant Agreement provides
that upon the occurrence of certain events the number of shares of Common Stock issuable upon exercise of the Warrants set forth on the
face hereof may, subject to certain conditions, be adjusted. If, upon exercise of a Warrant, the holder thereof would be entitled to receive
a fractional interest in a share of Common Stock, the Company shall, upon exercise, round down to the nearest whole number of shares of
Common Stock to be issued to the holder of the Warrant.
Warrant Certificates, when
surrendered at the principal corporate trust office of the Warrant Agent by the Registered Holder thereof in person or by legal representative
or attorney duly authorized in writing, may be exchanged, in the manner and subject to the limitations provided in the Warrant Agreement,
but without payment of any service charge, for another Warrant Certificate or Warrant Certificates of like tenor evidencing in the aggregate
a like number of Warrants.
Upon due presentation for
registration of transfer of this Warrant Certificate at the office of the Warrant Agent a new Warrant Certificate or Warrant Certificates
of like tenor and evidencing in the aggregate a like number of Warrants shall be issued to the transferee(s) in exchange for this Warrant
Certificate, subject to the limitations provided in the Warrant Agreement, without charge except for any tax or other governmental charge
imposed in connection therewith.
The Company and the Warrant
Agent may deem and treat the Registered Holder(s) hereof as the absolute owner(s) of this Warrant Certificate (notwithstanding any notation
of ownership or other writing hereon made by anyone), for the purpose of any exercise hereof, of any distribution to the holder(s) hereof,
and for all other purposes, and neither the Company nor the Warrant Agent shall be affected by any notice to the contrary. Neither the
Warrants nor this Warrant Certificate entitles any holder hereof to any rights of a stockholder of the Company.
Election to Purchase
(To Be Executed Upon Exercise of Warrant)
The undersigned hereby irrevocably
elects to exercise the right, represented by this Warrant Certificate, to receive [_] shares of Common Stock and herewith tenders payment
for such shares of Common Stock to the order of FTAC Emerald Acquisition Corp. (the “Company”) in the amount
of $ in accordance with the terms hereof. The undersigned requests that a certificate for such shares of Common Stock be registered
in the name of [___], whose address is [___] and that such shares of Common Stock be delivered to [___] whose address is [___]. If said
number of shares of Common Stock is less than all of the shares of Common Stock purchasable hereunder, the undersigned requests that a
new Warrant Certificate representing the remaining balance of such shares of Common Stock be registered in the name of [___], whose address
is [___] and that such Warrant Certificate be delivered to [___], whose address is [___].
In the event that the Warrant
is a Placement Warrant or Loan Warrant that is to be exercised on a “cashless” basis pursuant to subsection 3.3.1(c) of the
Warrant Agreement, the number of shares of Common Stock that this Warrant is exercisable for shall be determined in accordance with subsection
3.3.1(c) of the Warrant Agreement.
In the event that the Warrant
is to be exercised on a “cashless” basis pursuant to Section 7.4 of the Warrant Agreement, the number of shares of
Common Stock that this Warrant is exercisable for shall be determined in accordance with Section 7.4 of the Warrant Agreement.
In the event that the Warrant may be exercised,
to the extent allowed by the Warrant Agreement, through cashless exercise
(i) the number of shares of Common Stock that this Warrant is exercisable for would be determined in accordance with the relevant
section of the Warrant Agreement which allows for such cashless exercise and (ii) the holder hereof shall complete the following: The
undersigned hereby irrevocably elects to exercise the right, represented by this Warrant Certificate, through the cashless exercise provisions
of the Warrant Agreement, to receive shares of Common Stock. If said number of shares is less than all of the shares of Common Stock purchasable
hereunder (after giving effect to the cashless exercise), the undersigned requests that a new Warrant Certificate representing the remaining
balance of such shares of Common Stock be registered in the name of [___], whose address is [___] and that such Warrant Certificate be
delivered to [___], whose address is [___].
[Signature Page Follows]
Date: [___], 20__
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(Signature)
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(Address)
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(Tax Identification Number)
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Signature Guaranteed:
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THE SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE
GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE
MEDALLION PROGRAM, PURSUANT TO S.E.C. RULE 17Ad-15 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED).
EXHIBIT B
LEGEND
THE SECURITIES REPRESENTED
BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE
OFFERED, SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND ANY APPLICABLE
STATE SECURITIES LAWS OR AN EXEMPTION FROM REGISTRATION IS AVAILABLE.
IN ADDITION, SUBJECT TO ANY
ADDITIONAL LIMITATIONS ON TRANSFER DESCRIBED IN (1) THE LETTER AGREEMENT BY AND AMONG FTAC EMERALD ACQUISITION CORP. (THE “COMPANY”),
THE OFFICERS AND DIRECTORS OF THE COMPANY AND THE OTHER PARTIES THERETO AND (2) THE PURCHASE AGREEMENT BY AND AMONG THE COMPANY AND THE
OTHER PARTIES THERETO, THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD OR TRANSFERRED PRIOR TO THE DATE THAT IS THIRTY
(30) DAYS AFTER THE DATE UPON WHICH THE COMPANY COMPLETES ITS INITIAL BUSINESS COMBINATION (AS DEFINED IN SECTION 3 OF THE WARRANT AGREEMENT
REFERRED TO HEREIN) EXCEPT TO A PERMITTED TRANSFEREE (AS DEFINED IN SECTION 2 OF THE WARRANT AGREEMENT) WHO AGREES IN WRITING WITH THE
COMPANY TO BE SUBJECT TO SUCH TRANSFER PROVISIONS.
SECURITIES EVIDENCED BY THIS
CERTIFICATE AND COMMON STOCK OF THE COMPANY ISSUED UPON EXERCISE OF SUCH SECURITIES SHALL BE ENTITLED TO REGISTRATION RIGHTS UNDER A REGISTRATION
RIGHTS AGREEMENT TO BE EXECUTED BY THE COMPANY.
NO. WARRANT
Exhibit 5.1
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Reed Smith LLP
599 Lexington Avenue
New York, NY 10022-7650
+1 212 521 5400
Fax +1 212 521 5450
reedsmith.com
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November 19, 2021
FTAC Emerald Acquisition Corp.
2929 Arch Street, Suite 1703
Philadelphia, PA 19104
Ladies and Gentlemen:
We have acted as counsel to FTAC Emerald Acquisition
Corp., a Delaware corporation (the “Company”), in connection with the Registration Statement on Form S-1 (such registration
statement, as amended through the date hereof, the “Registration Statement”) filed by the Company with the Securities
and Exchange Commission (the “Commission”) under the Securities Act of 1933, as amended (the “Securities Act”),
relating to the offer and sale by the Company (the “Offering”) of (a) up to 25,3000,000 units of the Company (the “Units”)
(including up to 3,300,000 Units subject to the underwriters’ option to purchase additional
Units), each such Unit consisting of one share of Class A common stock of the Company, par value $0.0001 per share (the “Common
Stock”), and one-half of one redeemable warrant of the Company (each whole warrant, a “Warrant”), each Warrant
exercisable for the purchase of one share of Common Stock, as set forth in the prospectus included in the Registration Statement (the
“Prospectus”), (b) all shares of Common Stock and all Warrants, in each case, issued as part of the Units, and (c)
all shares of Common Stock underlying the Warrants (the “Warrant Shares”). The term “Units” also includes
any additional Units (and the underlying securities) that may be issued by the Company pursuant to Rule 462(b) under the Securities Act
in connection with the Offering.
This opinion letter is being furnished in accordance
with the requirements of Item 601(b)(5) of Regulation S-K under the Securities Act.
We have reviewed originals or copies of the Registration
Statement, the Prospectus, the certificate of incorporation and bylaws of the Company, as amended through the date hereof (the “Organizational
Documents”), the form of warrant agreement (the “Warrant Agreement”) proposed to be entered into by the Company
and Continental Stock Transfer & Trust Company, as warrant agent (the “Warrant Agent”) that is filed as Exhibit
4.4 to the Registration Statement, and the form of Unit certificate filed as Exhibit 4.1 to the Registration Statement (together with
the Warrant Agreement, the “Transaction Documents”), and such other corporate records, agreements and documents of
the Company, certificates or comparable documents of public officials and officers of the Company and have made such other investigations
as we have deemed necessary as a basis for the opinions set forth below.
In rendering the opinion set forth below, we have
assumed:
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a.
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the genuineness of all signatures;
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b.
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the legal capacity of natural persons;
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c.
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the authenticity of all documents submitted to us as originals;
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d.
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the conformity to original documents of all documents submitted to us as duplicates or conformed copies;
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e.
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as to matters of fact, the truthfulness of the representations made in certificates or comparable documents of
public officials and officers of the Company;
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f.
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the board of directors of the Company or a duly constituted and acting committee of such board of directors
will have taken all action necessary to set the public offering price of the Units;
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g.
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with respect to the issuance of the Common Stock, the amount of valid consideration paid in respect of
such Common Stock will equal or exceed the par value of such Common Stock; and
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h.
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neither the execution and delivery by the Company of the Transaction Documents nor the performance by
the Company of its obligations thereunder, including the issuance and sale of the Units, Warrants, and Warrant Shares (i) constitutes
or will constitute a violation of, or a default under, any lease, indenture, instrument or other agreement to which the Company or its
property is subject, (ii) contravenes or will contravene any order or decree of any governmental authority to which the Company or its
property is subject, or (iii) violates or will violate any law, rule or regulation to which the Company or its property is subject (except
that we do not make the assumption set forth in this clause (iii) with respect to the Opined-on Law (as defined below)).
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We have not independently established the validity
of the foregoing assumptions.
Based upon the foregoing, and subject to the qualifications,
assumptions and limitations stated herein, we are of the opinion that:
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1.
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The Units, when issued and sold by the Company in the manner contemplated in the Registration Statement
and Prospectus against payment therefor, and assuming the due authorization, execution and delivery of the Units by Continental Stock
Transfer & Trust Company, as transfer agent, will constitute the legal, valid, and binding obligations of the Company, enforceable
against the Company in accordance with their terms under the laws of the State of New York, subject to applicable bankruptcy, insolvency,
fraudulent conveyance, reorganization, moratorium and similar laws affecting creditors’ rights and remedies generally, and subject,
as to enforceability, to general principles of equity, including principles of commercial reasonableness, good faith, and fair dealing
(regardless of whether enforcement is sought in a proceeding at law or in equity).
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2.
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The Common Stock included in the Units, when the Units are issued and sold by the Company in the manner
contemplated in the Registration Statement and Prospectus, against payment therefor, will be validly issued, fully paid, and nonassessable.
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3.
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The Warrants included in the Units, when the Units are issued and sold by the Company in the manner contemplated
in the Registration Statement and Prospectus against payment therefor, and assuming the due authorization, execution and delivery of such
Warrants by the Warrant Agent, will constitute the legal, valid, and binding obligations of the Company, enforceable against the Company
in accordance with their terms, under the laws of the State of New York, subject to applicable bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium and similar laws affecting creditors’ rights and remedies generally,
and subject, as to enforceability, to general principles of equity, including principles of commercial reasonableness, good faith and
fair dealing (regardless of whether enforcement is sought in a proceeding at law or in equity).
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4.
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The Warrant Shares issuable upon exercise of the Warrants, assuming the due authorization, execution and
delivery of such Warrants by each of the Company and the Warrant Agent, in accordance with the Warrant Agreement, will be validly issued,
fully paid, and nonassessable.
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The opinions stated herein are subject to the
qualifications that we express no opinion as to the applicability of, compliance with, or effect of (i) public policy considerations which
may limit the rights of parties to obtain certain remedies, (ii) any requirement that a claim with respect to any security denominated
in other than U.S. dollars (or a judgment denominated in other than U.S. dollars in respect of such claim) be converted into U.S. dollars
at a rate of exchange prevailing on a date determined in accordance with applicable law, (iii) any provision waiving the right to object
to venue in any court; (iv) any agreement to submit to the jurisdiction of any federal court; and (v) governmental authority
to limit, delay or prohibit the making of payments outside of the United States or in a foreign currency or currency unit.
Our opinion is limited to the laws of the State
of New York and the General Corporation Law of the State of Delaware (collectively, the “Opined-on Law”) and we do
not express any opinion herein concerning any other law. This opinion letter speaks only as of its date.
We hereby consent to the filing of this opinion
letter as Exhibit 5.1 to the Registration Statement and to the use of our name under the caption “Legal Matters” in the Prospectus.
In giving such consent, we do not hereby admit that we are within the category of persons whose consent is required under Section 7 of
the Securities Act, and the rules and regulations of the Commission promulgated thereunder.
Very truly yours,
/s/ Reed Smith LLP
REED SMITH LLP
Exhibit 10.1
INVESTMENT MANAGEMENT TRUST AGREEMENT
This Investment Management
Trust Agreement (this “Agreement”) is made effective as of ,
2021 by and between FTAC Emerald Acquisition Corp., a Delaware corporation (the “Company”), and Continental
Stock Transfer & Trust Company, a New York corporation (the “Trustee”).
WHEREAS, the Company’s
registration statement on Form S-1, No. 333-[__________] (the “Registration Statement”) and related
prospectus (the “Prospectus”) for the initial public offering of the Company’s units (the “Units”),
each of which consists of one share of the Company’s Class A common stock, par value $0.0001 per share (the “Common
Stock”), and one-half of one warrant, each whole warrant to purchase one share of Common Stock (such initial public offering
hereinafter referred to as the “Offering”), was declared effective by the U.S. Securities and Exchange Commission
on , 2021; and
WHEREAS, the Company has entered
into an Underwriting Agreement (the “Underwriting Agreement”) with Goldman Sachs & Co. LLC (“Representative”),
as representative of the several underwriters named therein (the “Underwriters”); and
WHEREAS, as described in the
Registration Statement, $222,200,000 of the gross proceeds of the Offering and sale of the Private Placement Units (as defined in the
Underwriting Agreement) (or $255,530,000 if the Underwriters’ over-allotment option is exercised in full) will be delivered to the
Trustee to be deposited and held in a segregated trust account located in the United States (the “Trust Account”)
for the benefit of the Company and the holders of the Company’s Common Stock included in the Units issued in the Offering as hereinafter
provided (the amount to be delivered to the Trustee (and any interest subsequently earned thereon) is referred to herein as the “Property,”
the stockholders for whose benefit the Trustee shall hold the Property are referred herein to as the “Public Stockholders,”
and the Public Stockholders and the Company together are referred to herein as the “Beneficiaries”); and
WHEREAS, pursuant to the Underwriting
Agreement, $7,700,000, or up to $8,855,000 if the Underwriters’ over-allotment option is exercised in full, of the Property is attributable
to deferred underwriting discounts and commissions that may be payable by the Company to the Representative upon the consummation of the
Business Combination (as defined below) (the “Deferred Discount”); and
WHEREAS, the Company and the
Trustee desire to enter into this Agreement to set forth the terms and conditions pursuant to which the Trustee shall hold the Property.
NOW THEREFORE, IT IS
AGREED:
1. Agreements and Covenants
of Trustee. The Trustee hereby agrees and covenants to:
(a) Hold the Property in
trust for the Beneficiaries in accordance with the terms of this Agreement in the Trust Account established by the Trustee at JPMorgan
Chase Bank, N.A. (or at another U.S. chartered commercial bank with consolidated assets of $100 billion or more) and at a brokerage institution
selected by the Trustee that is reasonably satisfactory to the Company;
(b) Manage, supervise and
administer the Trust Account subject to the terms and conditions set forth herein;
(c) In a timely manner,
upon the written instruction of the Company, invest and reinvest the Property in United States government securities within the meaning
of Section 2(a)(16) of the Investment Company Act of 1940, as amended, having a maturity of 185 days or less, or in money market
funds meeting the conditions of paragraphs (d)(2), (d)(3), (d)(4) and (d)(5) of Rule 2a-7 promulgated under the Investment
Company Act of 1940, as amended, which invest only in direct U.S. government treasury obligations, as determined by the Company; it being
understood that the Trust Account will earn no interest while account funds are uninvested awaiting the Company’s instructions hereunder
and the Trustee may earn bank credits or other consideration;
(d) Collect and receive,
when due, all interest or other income arising from the Property, which shall become part of the “Property,” as such term
is used herein;
(e) Promptly notify the
Company of all communications received by the Trustee with respect to any Property requiring action by the Company;
(f) Supply any necessary
information or documents as may be requested by the Company (or its authorized agents) in connection with the Company’s preparation
of the tax returns relating to assets held in the Trust Account;
(g) Participate in any
plan or proceeding for protecting or enforcing any right or interest arising from the Property if, as and when instructed by the Company
to do so;
(h) Render to the Company
monthly written statements of the activities of, and amounts in, the Trust Account reflecting all receipts and disbursements of the Trust
Account;
(i) Commence liquidation
of the Trust Account only after and promptly after (x) receipt of, and only in accordance with, the terms of a letter from the Company
(“Termination Letter”) in a form substantially similar to that attached hereto as either Exhibit A
or Exhibit B, as applicable, signed on behalf of the Company by its Chief Executive Officer, President, Chief Financial Officer
or Chairman of the board of directors (the “Board”) or other authorized officer of the Company (and in the case
of Exhibit A, jointly signed by the Representative), and complete the liquidation of the Trust Account and distribute the
Property in the Trust Account, including any amounts representing interest earned on the Trust Account, less interest previously released
to, or reserved for use by, the Company in an amount up to $100,000 to pay dissolution expenses (as applicable) and less any other interest
released to, or reserved for use by, the Company to pay franchise and income taxes as provided in this Agreement only as directed in the
Termination Letter and the other documents referred to therein, or (y) [____], 2023 (“Termination Date”),
if a Termination Letter has not been received by the Trustee prior to such date, in which case the Trust Account shall be liquidated in
accordance with the procedures set forth in the Termination Letter attached as Exhibit B and the Property in the Trust Account,
including any amounts representing interest earned on the Trust Account, less interest previously released to, or reserved for use by,
the Company in an amount up to $100,000 to pay dissolution expenses (as applicable) and less any other interest released to, or reserved
for use by, the Company to pay franchise and income taxes, shall be distributed to the Public Stockholders of record as of such date;
The Trustee agrees to serve as the paying agent of record (“Paying Agent”) with respect to any distribution
of Property that is to be made to the Public Stockholders and, in its separate capacity as Paying Agent, agrees to distribute such Property
directly to the Company’s Public Stockholders in accordance with the terms of this Agreement and the Company’s Certificate
of Incorporation in effect at the time of such distribution;
(j) Upon written request
from the Company, which may be given from time to time in a form substantially similar to that attached hereto as Exhibit C
(a “Withdrawal Request”), withdraw from the Trust Account and distribute to the Company interest in an amount
up to $100,000 to pay dissolution expenses and any interest to cover any tax obligation owed by the Company as a result of assets of the
Company or any franchise or income taxes of the Company which amount shall be delivered directly to the Company by electronic funds transfer
or other method of prompt payment. Any Withdrawal Request for a distribution to pay a franchise tax shall be accompanied by a copy of
the franchise tax bill from the State of Delaware for the Company and a written statement from the principal financial officer of the
Company setting forth the actual amount payable. To the extent there is not sufficient cash in the Trust Account to fulfill a Withdrawal
Request, the Trustee shall liquidate such assets held in the Trust Account as shall be designated by the Company in writing to make such
distribution, so long as there is no reduction in the principal amount per share initially deposited in the Trust Account. The Trustee
acknowledges and agrees that no amount in excess of interest income earned on the Property shall be payable from the Trust Account to
the Company pursuant to this Section 1(j). A Withdrawal Request shall constitute presumptive evidence that the Company is
entitled to said funds, and the Trustee shall have no responsibility to look beyond said request; and
(k) Upon written request
from the Company, which may be given from time to time in a form substantially similar to that attached hereto as Exhibit D,
the Trustee shall distribute on behalf of the Company the amount requested by the Company to be used to redeem shares of Common Stock
from Public Stockholders properly submitted in connection with a stockholder vote to approve an amendment to the Company’s amended
and restated certificate of incorporation to modify the substance or timing of the Company’s obligation to redeem 100% of its public
shares of Common Stock if the Company has not consummated an initial Business Combination within such time as is described in Section 1(i) of
this Agreement or to allow redemption in connection with an initial Business Combination. The written request of the Company referenced
above shall constitute presumptive evidence that the Company is entitled to distribute said funds, and the Trustee shall have no responsibility
to look beyond said request; and
(l) Not make any withdrawals
or distributions from the Trust Account other than pursuant to Section 1(i) through 1(k) above.
2. Agreements and Covenants
of the Company. The Company hereby agrees and covenants to:
(a) Give all instructions
to the Trustee hereunder in writing, signed by the Company’s Chairman of the Board, President, Chief Executive Officer or Chief
Financial Officer. In addition, except with respect to its duties under Sections 1(i), 1(j) and 1(k) hereof,
the Trustee shall be entitled to rely on, and shall be protected in relying on, any verbal or telephonic advice or instruction which it,
in good faith and with reasonable care, believes to be given by any one of the persons authorized above to give written instructions,
provided that the Company shall promptly confirm such instructions in writing;
(b) Subject to Section 4
hereof, hold the Trustee harmless and indemnify the Trustee from and against any and all expenses, including reasonable counsel fees and
disbursements, or losses suffered by the Trustee in connection with any action taken by it hereunder and in connection with any action,
suit or other proceeding brought against the Trustee involving any claim, or in connection with any claim or demand, which in any way
arises out of or relates to this Agreement, the services of the Trustee hereunder, or the Property or any interest earned on the Property,
except for expenses and losses resulting from the Trustee’s gross negligence, fraud or willful misconduct. Promptly after the receipt
by the Trustee of notice of demand or claim or the commencement of any action, suit or proceeding, pursuant to which the Trustee intends
to seek indemnification under this Section 2(b), the Trustee shall notify the Company in writing of such claim (hereinafter
referred to as the “Indemnified Claim”). The Trustee shall have the right to conduct and manage the defense
against such Indemnified Claim; provided that the Trustee shall obtain the consent of the Company with respect to the selection
of counsel, which consent shall not be unreasonably withheld. The Trustee shall not agree to settle any Indemnified Claim without the
prior written consent of the Company, which such consent shall not be unreasonably withheld. The Company may participate in such action
with its own counsel;
(c) Pay the Trustee the
fees set forth on Schedule A hereto, including an initial acceptance fee, annual administration fee and transaction processing
fee, which fees shall be subject to modification by the parties from time to time. It is expressly understood that the Property shall
not be used to pay such fees unless and until the Business Combination is consummated. The Company shall pay the Trustee the initial acceptance
fee and the first annual administration fee at the consummation of the Offering. The Company shall not be responsible for any other fees
or charges of the Trustee except as set forth in this Section 2(c) and as may be provided in Section 2(b) hereof;
(d) In connection with
any vote of the Company’s stockholders regarding a merger, capital stock exchange, asset acquisition, stock purchase, reorganization
or similar business combination involving the Company and one or more businesses (a “Business Combination”),
provide to the Trustee an affidavit or certificate of the inspector of elections for the stockholder meeting verifying the vote of such
stockholders regarding such Business Combination;
(e) Provide Representative
with a copy of any Termination Letter(s) and/or any other correspondence that is sent to the Trustee with respect to any proposed
withdrawal from the Trust Account promptly after it issues the same;
(f) Instruct the Trustee
to make only those distributions that are permitted under this Agreement, and refrain from instructing the Trustee to make any distributions
that are not permitted under this Agreement; and
(g) Within four (4) business
days after the Underwriters exercise the over-allotment option (or any portion thereof) or such over-allotment expires, provide the Trustee
with a notice in writing of the total amount of the Deferred Discount due with respect to such exercise, which shall be up to $8,855,000.
3. Limitations of Liability.
The Trustee shall have no responsibility or liability to:
(a) Imply obligations,
perform duties, inquire or otherwise be subject to the provisions of any agreement or document other than this Agreement and that which
is expressly set forth herein;
(b) Take any action with
respect to the Property, other than as directed in Section 1 hereof, and the Trustee shall have no liability to any third
party except for liability arising out of the Trustee’s gross negligence, fraud or willful misconduct;
(c) Institute any proceeding
for the collection of any principal and income arising from, or institute, appear in or defend any proceeding of any kind with respect
to, any of the Property unless and until it shall have received instructions from the Company given as provided herein to do so and the
Company shall have advanced or guaranteed to it funds sufficient to pay any expenses incident thereto;
(d) Refund any depreciation
in principal of any Property;
(e) Assume that the authority
of any person designated by the Company to give instructions hereunder shall not be continuing unless provided otherwise in such designation,
or unless the Company shall have delivered a written revocation of such authority to the Trustee;
(f) The other parties hereto
or to anyone else for any action taken or omitted by it, or any action suffered by it to be taken or omitted, in good faith and in the
Trustee’s best judgment, except for the Trustee’s gross negligence, fraud or willful misconduct. The Trustee may rely conclusively
and shall be protected in acting upon any order, notice, demand, certificate, opinion or advice of counsel (including counsel chosen by
the Trustee, which counsel may be the Company’s counsel), statement, instrument, report or other paper or document (not only as
to its due execution and the validity and effectiveness of its provisions, but also as to the truth and acceptability of any information
therein contained) which the Trustee believes, in good faith and with reasonable care, to be genuine and to be signed or presented by
the proper person or persons. The Trustee shall not be bound by any notice or demand, or any waiver, modification, termination or rescission
of this Agreement or any of the terms hereof, unless evidenced by a written instrument delivered to the Trustee, signed by the proper
party or parties and, if the duties or rights of the Trustee are affected, unless it shall give its prior written consent thereto;
(g) Verify the accuracy
of the information contained in the Registration Statement;
(h) Provide any assurance
that any Business Combination entered into by the Company or any other action taken by the Company is as contemplated by the Registration
Statement;
(i) File information returns
with respect to the Trust Account with any local, state or federal taxing authority or provide periodic written statements to the Company
documenting the taxes payable by the Company, if any, relating to any interest income earned on the Property;
(j) Prepare, execute and
file tax reports, income or other tax returns and pay any taxes with respect to any income generated by, and activities relating to, the
Trust Account, regardless of whether such tax is payable by the Trust Account or the Company, including, but not limited to, income tax
obligations, except pursuant to Section 1(j) hereof; or
(k) Verify calculations,
qualify or otherwise approve the Company’s written requests for distributions pursuant to Sections 1(i), 1(j) and
1(k) hereof.
4. Trust Account Waiver.
The Trustee has no right of set-off or any right, title, interest or claim of any kind (“Claim”) to, or to any
monies in, the Trust Account, and hereby irrevocably waives any Claim to, or to any monies in, the Trust Account that it may have now
or in the future. In the event the Trustee has any Claim against the Company under this Agreement, including, without limitation, under
Section 2(b) or Section 2(c) hereof, the Trustee shall pursue such Claim solely against the Company
and its assets outside the Trust Account and not against the Property or any monies in the Trust Account.
5. Termination. This
Agreement shall terminate as follows:
(a) If the Trustee gives
written notice to the Company that it desires to resign under this Agreement, the Company shall use its reasonable efforts to locate a
successor trustee, pending which the Trustee shall continue to act in accordance with this Agreement. At such time that the Company notifies
the Trustee that a successor trustee has been appointed and has agreed to become subject to the terms of this Agreement, the Trustee shall
transfer the management of the Trust Account to the successor trustee, including but not limited to the transfer of copies of the reports
and statements relating to the Trust Account, whereupon this Agreement shall terminate; provided, however, that in the event
that the Company does not locate a successor trustee within ninety (90) days of receipt of the resignation notice from the Trustee, the
Trustee may submit an application to have the Property deposited with any court in the State of New York or with the United States District
Court for the Southern District of New York and upon such deposit, the Trustee shall be immune from any liability whatsoever; or
(b) At such time that the
Trustee has completed the liquidation of the Trust Account and its obligations in accordance with the provisions of Section 1(i) and
distributed the Property in accordance with the provisions of the Termination Letter, this Agreement shall terminate except as set forth
in Section 2(b).
6. Miscellaneous.
(a) The Company and the
Trustee each acknowledge that the Trustee will follow the security procedures set forth below with respect to funds transferred from the
Trust Account. The Company and the Trustee will each restrict access to confidential information relating to such security procedures
to authorized persons. Each party must notify the other party immediately if it has reason to believe unauthorized persons may have obtained
access to such confidential information, or of any change in its authorized personnel. In executing funds transfers, the Trustee shall
rely upon all information supplied to it by the Company, including account names, account numbers, and all other identifying information
relating to a Beneficiary, Beneficiary’s bank or intermediary bank. Except for any liability arising out of the Trustee’s
gross negligence, fraud or willful misconduct, the Trustee shall not be liable for any loss, liability or expense resulting from any error
in the information or transmission of the funds.
(b) This Agreement shall
be governed by and construed and enforced in accordance with the laws of the State of New York, without giving effect to conflicts of
law principles that would result in the application of the substantive laws of another jurisdiction. This Agreement may be executed in
several original or facsimile counterparts, each one of which shall constitute an original, and together shall constitute but one instrument.
(c) This Agreement contains
the entire agreement and understanding of the parties hereto with respect to the subject matter hereof. Except for Section 1(i) hereof
(which may not be modified, amended or deleted without the affirmative vote of sixty five percent (65%) of the then outstanding shares
of Common Stock; provided, that an amendment to Section 1(i) shall also require the consent of the Representative;
provided further that no such amendment will affect any Public Stockholder who has elected to redeem shares of Common Stock in
connection with a stockholder vote to amend this Agreement to extend the Termination Date, and such amendment shall provide for redemption
rights), this Agreement or any provision hereof may only be changed, amended or modified (other than to correct a typographical error)
by a writing signed by each of the parties hereto.
(d) The parties hereto
consent to the jurisdiction and venue of any state or federal court located in the City of New York, State of New York, for purposes of
resolving any disputes hereunder. AS TO ANY CLAIM, CROSS-CLAIM OR COUNTERCLAIM IN ANY WAY RELATING TO THIS AGREEMENT, EACH PARTY WAIVES
THE RIGHT TO TRIAL BY JURY.
(e) Any notice, consent
or request to be given in connection with any of the terms or provisions of this Agreement shall be in writing and shall be sent by express
mail or similar private courier service, by certified mail (return receipt requested), by hand delivery or by facsimile transmission:
if to the Trustee, to:
Continental Stock Transfer &
Trust Company
1 State Street, 30th Floor
New York, New York 10004
Attn: [•]
Email: [•]
Fax No.: [•]
if to the Company, to:
FTAC Emerald Acquisition Corp.
2929 Arch Street, Suite 1703
Philadelphia, PA 19104
Attn: Bracebridge H. Young, Jr.
in each case, with copies to:
Reed Smith LLP
599 Lexington Avenue, 22nd
Floor
New York, NY 1002
Attn: Ari Edelman
and
Goldman Sachs & Co. LLC
[•]
[•]
Attn: [•]
and
Winston & Strawn LLP
800 Capitol Street, Suite 2400
Houston, TX 77002
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Attn:
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Michael Blankenship
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Dominick DeChiara
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(f) This Agreement may
not be assigned by the Trustee without the prior consent of the Company.
(g) Each of the Company
and the Trustee hereby represents that it has the full right and power and has been duly authorized to enter into this Agreement and to
perform its respective obligations as contemplated hereunder. The Trustee acknowledges and agrees that it shall not make any claims or
proceed against the Trust Account, including by way of set-off, and shall not be entitled to any funds in the Trust Account under any
circumstance.
(h) This Agreement is the
joint product of the Trustee and the Company and each provision hereof has been subject to the mutual consultation, negotiation and agreement
of such parties and shall not be construed for or against any party hereto.
(i) This Agreement may
be executed in any number of counterparts, each of which shall be deemed to be an original, but all such counterparts shall together constitute
one and the same instrument. Delivery of a signed counterpart of this Agreement by facsimile or electronic transmission shall constitute
valid and sufficient delivery thereof.
(j) Each of the Company
and the Trustee hereby acknowledges and agrees that Goldman Sachs & Co. LLC, on behalf of the Underwriters, is a third party
beneficiary of this Agreement.
(k) Except as specified
herein, no party to this Agreement may assign its rights or delegate its obligations hereunder to any other person or entity.
[Signature Page Follows]
IN
WITNESS WHEREOF, the parties have duly executed this Investment Management Trust Agreement as of the date first written above.
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Continental Stock Transfer & Trust Company, as Trustee
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By:
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Name:
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Title:
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FTAC Emerald Acquisition Corp.
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By:
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Name: Bracebridge H. Young, Jr.
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Title: President and Chief Executive Officer
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[Signature Page to Investment Management Trust
Agreement]
SCHEDULE A
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Fee Item
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Time and method of payment
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Amount
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Initial acceptance fee
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Initial closing of IPO by wire transfer
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$
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3,500.00
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Annual fee
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First year, initial closing of IPO by wire transfer; thereafter on the anniversary of the effective date of the IPO by wire transfer or check
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$
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10,000.00
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Transaction processing fee for disbursements to Company under Section 1
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Billed to Company following disbursement made to Company under Section 1
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$
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250.00
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Paying Agent services as required pursuant to Section 1
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Billed to Company upon delivery of service pursuant to Section 1
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Prevailing rates
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EXHIBIT A
[Letterhead of Company]
[Insert date]
Continental Stock Transfer & Trust Company
1 State Street, 30th Floor
New York, New York 10004
Attn: [•]
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Re:
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Trust Account - Termination Letter
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Dear [•]:
Pursuant to Section 1(i) of
the Investment Management Trust Agreement between FTAC Emerald Acquisition Corp. (“Company”) and Continental
Stock Transfer & Trust Company (“Trustee”), dated as of [---------] (“Trust Agreement”),
this is to advise you that the Company has entered into an agreement with (“Target Business”) to consummate
a business combination with Target Business (“Business Combination”) on or about [insert date]. The Company
shall notify you at least seventy-two (72) hours in advance of the actual date of the consummation of the Business Combination (“Consummation
Date”). Capitalized terms used but not defined herein shall have the meanings set forth in the Trust Agreement.
In accordance with the terms
of the Trust Agreement, we hereby authorize you to commence to liquidate all of the assets of the Trust Account and to transfer the proceeds
into the trust operating account at JPMorgan Chase Bank, N.A. so that, on the Consummation Date, all of funds held in the Trust Account
will be immediately available for transfer to the account or accounts that the Company shall direct on the Consummation Date. It is acknowledged
and agreed that while the funds are on deposit in the trust operating account at JPMorgan Chase Bank, N.A. awaiting distribution, the
Company will not earn any interest or dividends.
On the Consummation Date (i) counsel
for the Company shall deliver to you written notification that the Business Combination has been consummated, or will be consummated concurrently
with your transfer of funds to the accounts as directed by the Company (the “Notification”) and (ii) the
Company shall deliver to you (a) a certificate by the Chief Executive Officer or President, which verifies that the Business Combination
has been approved by a vote of the Company’s stockholders, if a vote is held, and (b) a joint written instruction signed by
the Company and the Representative with respect to the transfer of the funds held in the Trust Account, including payment of the Deferred
Discount from the Trust Account (the “Instruction Letter”). You are hereby directed and authorized to transfer
the funds held in the Trust Account immediately upon your receipt of the Notification and the Instruction Letter, in accordance with the
terms of the Instruction Letter. In the event that certain deposits held in the Trust Account may not be liquidated by the Consummation
Date without penalty, you will notify the Company in writing of the same and the Company shall direct you as to whether such funds should
remain in the Trust Account and be distributed after the Consummation Date to the Company. Upon the distribution of all the funds from
the Trust Account, your obligations under the Trust Agreement shall be terminated.
In the event that the Business
Combination is not consummated on the Consummation Date described in the notice thereof and we have not notified you on or before the
original Consummation Date of a new Consummation Date, then upon receipt by the Trustee of written instructions from the Company, the
funds held in the Trust Account shall be reinvested as provided in Section 1(c) of the Trust Agreement on the business
day immediately following the Consummation Date as set forth in the notice as soon thereafter as possible.
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Very truly yours,
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FTAC Emerald Acquisition Corp.
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By:
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Name:
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Title:
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AGREED TO AND
ACKNOWLEDGED BY
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GOLDMAN SACHS & CO. LLC
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By:
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Name:
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Title:
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EXHIBIT B
[Letterhead of Company]
[Insert date]
Continental Stock Transfer & Trust Company
1 State Street, 30th Floor
New York, New York 10004
Attn: [•]
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Re:
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Trust Account - Termination Letter
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Dear [•]:
Pursuant to Section 1(i) of
the Investment Management Trust Agreement between FTAC Emerald Acquisition Corp. (“Company”) and Continental
Stock Transfer & Trust Company (“Trustee”), dated as of [----------] (“Trust Agreement”),
this is to advise you that [the Company’s board of director has approved and commenced with the liquidation and dissolution of the
Company] [the Company has been unable to effect a business combination with a Target Business within the time frame specified in Section 1(i) of
the Trust Agreement]. Capitalized terms used but not defined herein shall have the meanings set forth in the Trust Agreement.
In accordance with the terms
of the Trust Agreement, we hereby authorize you to liquidate all of the assets in the Trust Account on___________, 202_ and to transfer
the total proceeds into the trust operating account at JPMorgan Chase Bank, N.A. to await distribution to the Public Stockholders. The
Company has selected [___], 202_, as the effective date for the purpose of determining when the Public Stockholders will be entitled to
receive their share of the liquidation proceeds. In your capacity as Paying Agent, we hereby direct you to distribute said funds directly
to the Company’s Public Stockholders in accordance with the terms of the Trust Agreement and the Amended and Restated Certificate
of Incorporation of the Company as in effect at the time of such distribution. Upon the distribution of all funds in the Trust Account,
your obligations under the Trust Agreement shall be terminated, except to the extent otherwise provided in Section 1(j) of
the Trust Agreement.
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Very truly yours,
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FTAC Emerald Acquisition Corp.
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By:
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Name:
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Title:
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cc:
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Goldman Sachs & Co. LLC
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EXHIBIT C
[Letterhead of Company]
[Insert date]
Continental Stock Transfer & Trust Company
1 State Street, 30th Floor
New York, New York 10004
Attn: [•]
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Re:
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Trust Account - Withdrawal Instruction
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Dear [•]:
Pursuant to Section 1(j) of
the Investment Management Trust Agreement between FTAC Emerald Acquisition Corp. (“Company”) and Continental
Stock Transfer & Trust Company (“Trustee”), dated as of [-----] (“Trust Agreement”),
the Company hereby requests that you deliver to the Company $____ of the interest income earned on the Property as of the date hereof.
Capitalized terms used but not defined herein shall have the meanings set forth in the Trust Agreement.
The Company needs such funds
[to pay for the tax obligations as set forth on the attached tax return or tax statement] [in connection with its dissolution [upon the
expiration of the 18 to 21 month period following completion of the Offering] [prior to Termination Date]]. In accordance with the terms
of the Trust Agreement, you are hereby directed and authorized to transfer (via wire transfer) such funds promptly upon your receipt of
this letter to the Company’s operating account at:
[WIRE INSTRUCTION INFORMATION]
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Very truly yours,
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FTAC Emerald Acquisition Corp.
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By:
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Name:
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Title:
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cc:
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Goldman Sachs & Co. LLC
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EXHIBIT D
[Letterhead of Company]
[Insert date]
Continental Stock Transfer & Trust Company
1 State Street, 30th Floor
New York, New York 10004
Attn: [•]
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Re:
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Trust Account Stockholder Redemption Withdrawal Instruction
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Dear [•]:
Pursuant to Section 1(j) of
the Investment Management Trust Agreement between FTAC Emerald Acquisition Corp. (“Company”) and Continental
Stock Transfer & Trust Company (“Trustee”), dated as of [--------] (“Trust Agreement”),
the Company hereby requests that you liquidate sufficient amounts from the trust account and deliver to the redeeming Public Stockholders
of the Company $____ of the principal and interest income earned on the Property as of the date hereof to a segregated account held by
you on behalf of the Beneficiaries. Capitalized terms used but not defined herein shall have the meanings set forth in the Trust Agreement.
The Company needs such funds
to pay its Public Stockholders who have properly elected to have their shares of Common Stock redeemed by the Company in connection with
a stockholder vote to approve an amendment to the Company’s amended and restated certificate of incorporation to modify the substance
or timing of the Company’s obligation to redeem 100% of its public shares of Common Stock if the Company has not consummated an
initial Business Combination within such time as is described in Section 1(i) of the Trust Agreement. As such, you are
hereby directed and authorized to transfer (via wire transfer) such funds promptly upon your receipt of this letter to a segregated account
held by you on behalf of the Beneficiaries.
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Very truly yours,
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FTAC Emerald Acquisition Corp.
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By:
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Name:
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Title:
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cc:
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Goldman Sachs & Co. LLC
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Exhibit 10.2
REGISTRATION RIGHTS AGREEMENT
THIS REGISTRATION RIGHTS
AGREEMENT (this “Agreement”), dated as of , 2021,
is made and entered into by and among each of FTAC Emerald Acquisition Corp., a Delaware corporation (the “Company”),
Emerald ESG Sponsor, LLC, a Delaware limited liability company (the “Sponsor”) and the undersigned parties listed
on the signature page hereto (each such party, together with the Sponsor and any person or entity who hereafter becomes a party to
this Agreement pursuant to Section 5.2 of this Agreement, a “Holder” and collectively
the “Holders”).
RECITALS
WHEREAS, the Company
has issued the Sponsor an aggregate of 8,763,333 shares (the “Founder Shares”) of the Company’s Class B
common stock, $0.0001 par value per share (the “Class B Common Stock”), of which an aggregate of 1,133,333
Founder Shares are subject to forfeiture to the extent that the underwriters of the Company’s initial public offering (the “IPO”)
do not exercise their overallotment option in full;
WHEREAS, the Founder
Shares are convertible into shares of the Company’s Class A common stock, par value $0.0001 per share (the “Common
Stock”), on the terms and conditions provided in the Company’s amended and restated certificate of incorporation;
WHEREAS, the Sponsor
has entered into a unit subscription agreement with the Company (the “Placement Unit Subscription Agreement”),
pursuant to which the Sponsor has agreed to purchase up to 990,000 units of the Company (each, a “Placement Unit”
and collectively, the “Placement Units”) of which 100,000 Placement Units are subject to forfeiture to the extent
that the underwriters of the Company’s IPO do not exercise their overallotment option in full, each Placement Unit consisting of
one share of Common Stock (each, a “Placement Share” and collectively, the “Placement Shares”)
and one half of one warrant to purchase one share of Common Stock (each, a “Placement Warrant” and collectively,
the “Placement Warrants”) in a private placement transaction (the “Private Placement”)
occurring simultaneously with the closing of the IPO;
WHEREAS, in order to
finance transaction costs in connection with an intended initial business combination, the Sponsor, an affiliate of the Sponsor or certain
of the Company’s officers and directors may loan to the Company funds as the Company may require, of which up to $2,000,000 of such
loans may be convertible into units, each unit consisting of one share of Common Stock and one half of one warrant to purchase one share
of Common Stock (“Working Capital Units”) at a price of $10.00 per unit; and
WHEREAS, the Company
and the Holders desire to enter into this Agreement, pursuant to which the Company shall grant the Holders certain registration rights
with respect to certain securities of the Company, as set forth in this Agreement.
NOW, THEREFORE,
in consideration of the representations, covenants and agreements contained herein, and certain other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:
ARTICLE I
DEFINITIONS
1.1 Definitions. The
terms defined in this Article I shall, for all purposes of this Agreement, have the respective meanings set forth below:
“Adverse Disclosure”
shall mean any public disclosure of material non-public information, which disclosure, in the good faith judgment of the Board or the
Chairman, Chief Executive Officer or principal financial officer of the Company (i) would be required to be made in any Registration
Statement or Prospectus in order for the applicable Registration Statement or Prospectus not to contain any untrue statement of a material
fact or omit to state a material fact necessary to make the statements contained therein (in the case of any Prospectus and any preliminary
Prospectus, in the light of the circumstances under which they were made) not misleading, (ii) would not be required to be made at
such time if the Registration Statement were not being filed, and (iii) the Company has a bona fide business purpose for not making
such information public.
“Agreement”
shall have the meaning given in the Preamble.
“Board”
shall mean the Board of Directors of the Company.
“Business Combination”
means any merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business transaction with one or
more businesses involving the Company.
“Business Day”
means any day, other than a Saturday or a Sunday, that is neither a legal holiday nor a day on which banking institutions are generally
authorized or required by law or regulation to close in the City of New York, New York.
“Commission”
shall mean the Securities and Exchange Commission.
“Common Stock”
shall have the meaning given in the Recitals hereto.
“Company”
shall have the meaning given in the Preamble.
“Demand Registration”
shall have the meaning given in subsection 2.1.1.
“Demanding Holders”
shall have the meaning given in subsection 2.1.1.
“Exchange Act”
shall mean the Securities Exchange Act of 1934, as it may be amended from time to time.
“Form S-1”
shall have the meaning given in subsection 2.1.1.
“Form S-3”
shall have the meaning given in subsection 2.3.
“Founder Lock-up
Period” shall mean, with respect to the Founder Shares, the period ending (x)(a) with respect to 25% of such shares,
upon consummation of the initial Business Combination, (b) with respect to 25% of such shares, when the closing price of the Common
Stock exceeds $12.00 per share for any 20 trading days within a 30-trading day period following the consummation of the initial Business
Combination, (c) with respect to 25% of such shares, when the closing price of the Common Stock exceeds $13.50 per share for any
20 trading days within a 30-trading day period following the consummation of the initial Business Combination, and (d) with respect
to 25% of such shares, when the closing price of the Common Stock exceeds $15.00 per share for any 20 trading days within a 30-trading
day period following the consummation of the initial Business Combination or earlier, in any case, if, following a Business Combination,
we complete a liquidation, merger, stock exchange or other similar transaction that results in all of our public stockholders having the
right to exchange their shares of the Common Stock for cash, securities or other property.
“Founder Shares”
shall have the meaning given in the Recitals hereto.
“Holders”
shall have the meaning given in the Preamble.
“IPO”
shall have meaning set forth in the Recitals hereto.
“Letter Agreement”
shall mean the letter agreement by and among the Company, the Company’s officers and directors and the Sponsor.
“Maximum Number
of Securities” shall have the meaning given in subsection 2.1.4.
“Misstatement”
shall mean an untrue statement of a material fact or an omission to state a material fact required to be stated in a Registration Statement,
preliminary Prospectus or Prospectus, or necessary to make the statements in a Registration Statement, preliminary Prospectus or Prospectus,
in light of the circumstances under which they were made, not misleading.
“Permitted Transferees”
shall mean any person or entity to whom a Holder of Registrable Securities is permitted to transfer such Registrable Securities prior
to the expiration of the Founder Lock-up Period or Placement Unit Lock-up Period, as the case may be, under the Letter Agreement and any
other applicable agreement between such Holder and the Company, and to any transferee thereafter.
“Piggy-back Registration”
shall have the meaning given in Section 2.2.1.
“Placement Share”
or “Placement Shares” shall have the meaning given in the Recitals hereto.
“Placement Unit
Lock-up Period” shall mean, with respect to the Placement Units, Placement Shares, Placement Warrants and any of the shares
of Common Stock issued or issuable upon the exercise of such Placement Warrants, a period terminating 30 days after the consummation of
a Business Combination, subject to certain exceptions set forth in the Letter Agreement.
“Placement Unit”
or “Placement Units” shall have the meaning given in the Recitals hereto.
“Placement Warrant”
or “Placement Warrants” shall have the meaning given in the Recitals hereto.
“Private Placement”
shall have the meaning given in the Recitals hereto.
“Pro Rata”
shall have the meaning given in Section 2.1.4.
“Prospectus”
shall mean the prospectus included in any Registration Statement, as supplemented by any and all prospectus supplements and as amended
by any and all post-effective amendments and including all materials incorporated by reference in such prospectus.
“Prospectus Date”
shall mean the date of the final Prospectus filed with the Commission and relating to the IPO.
“Registrable Security”
shall mean (a) the shares of Common Stock issued or issuable upon the conversion of any Founder Shares, (b) the Placement Warrants
(including any shares of Common Stock issued or issuable upon the exercise of any such Placement Warrants), (c) the Placement Shares,
(d) any outstanding shares of Common Stock or any other equity security (including the Common Stock issued or issuable upon the exercise
of any other equity security) held by a Holder as of the date of this Agreement, (e) any equity securities (including the shares
of Common Stock issued or issuable upon the exercise of any such equity security) of the Company issuable upon conversion of any working
capital loans in an amount up to $2,000,000 made to the Company by a Holder (including the Working Capital Units and any shares of Common
Stock issuable upon the exercise of the warrants included in the Working Capital Units), and (f) any other equity security of the
Company issued or issuable with respect to any such shares of Common Stock by way of a stock dividend or stock split or in connection
with a combination of stock, acquisition, recapitalization, consolidation, reorganization, stock exchange, stock reconstruction and amalgamation
or contractual control arrangement with, purchasing all or substantially all of the assets of, or engagement in any other similar transaction;
provided, however, that, as to any particular Registrable Security, such securities shall cease to be Registrable Securities
when: (i) if a Registration Statement with respect to the sale of such securities shall have become effective under the Securities
Act, at the earlier of (A) one year following the date the Registration Statement is declared effective or (B) the date that
such securities shall have been sold, transferred, disposed of or exchanged in accordance with such Registration Statement; (ii) such
securities may otherwise be transferred, new certificates for such securities not bearing a legend restricting further transfer shall
have been delivered by the Company and subsequent public distribution of such securities shall not require registration under the Securities
Act; (iii) such securities shall have ceased to be outstanding; or (iv) such securities have been sold to, or through, a broker,
dealer or underwriter in a public distribution or other public securities transaction.
“Registration”
shall mean a registration effected by preparing and filing a Registration Statement or similar document in compliance with the requirements
of the Securities Act, and the applicable rules and regulations promulgated thereunder, and such Registration Statement becoming
effective.
“Registration
Expenses” shall mean the out-of-pocket expenses of a Registration, including, without limitation, the following:
(A) all registration
and filing fees (including fees with respect to filings required to be made with the Financial Industry Regulatory Authority and any securities
exchange on which the Common Stock is then listed);
(B) fees and expenses
of compliance with securities or blue sky laws (including reasonable fees and disbursements of counsel for the Underwriters in connection
with blue sky qualifications of Registrable Securities);
(C) printing, messenger,
telephone and delivery expenses;
(D) reasonable fees and
disbursements of counsel for the Company; and
(E) reasonable fees and
disbursements of all independent registered public accountants of the Company incurred specifically in connection with such Registration.
“Registration
Statement” shall mean any registration statement that covers the Registrable Securities pursuant to the provisions of this
Agreement, including the Prospectus included in such registration statement, amendments (including post-effective amendments) and supplements
to such registration statement, and all exhibits to and all materials incorporated by reference in such registration statement.
“Requesting Holder”
shall have the meaning given in subsection 2.1.1.
“Securities Act”
shall mean the Securities Act of 1933, as amended from time to time.
“Sponsor”
shall have the meaning given in the Preamble.
“Underwriter”
shall mean a securities dealer who purchases any Registrable Securities as principal in an Underwritten Offering and not as part of such
dealer’s market-making activities.
“Underwritten
Registration” or “Underwritten Offering” shall mean a Registration in which securities of the
Company are sold to an Underwriter in a firm commitment underwriting for distribution to the public.
“Working Capital
Units” shall have the meaning given in the Recitals hereto.
ARTICLE II
REGISTRATIONS
2.1 Demand Registration.
2.1.1 Request for
Registration. Subject to the provisions of subsection 2.1.4 and Section 2.4 hereof, at any time and from time to
time on or after the date the Company consummates the Business Combination, the Holders of a majority-in-interest of the then outstanding
number of Registrable Securities (the “Demanding Holders”), may make a written demand for Registration under
the Securities Act of all or part of their Registrable Securities, which written demand shall describe the amount and type of securities
to be included in such Registration and the intended method(s) of distribution thereof (such written demand a “Demand
Registration”). The Company shall, within ten (10) days of the Company’s receipt of the Demand Registration,
notify, in writing, all other Holders of Registrable Securities of such demand, and each Holder of Registrable Securities who thereafter
wishes to include all or a portion of such Holder’s Registrable Securities in a Registration pursuant to a Demand Registration (each
such Holder that includes all or a portion of such Holder’s Registrable Securities in such Registration, a “Requesting
Holder”) shall so notify the Company, in writing, within five (5) Business Days after the receipt by the Holder
of the notice from the Company. Upon receipt by the Company of any such written notification from a Requesting Holder(s) to the Company,
such Requesting Holder(s) shall be entitled to have their Registrable Securities included in a Registration pursuant to a Demand
Registration and the Company shall, not more than forty five (45) days after the Company’s receipt of the Demand Registration, file
a Registration Statement on Form S-1 or any similar long-form registration statement that may be available at that time (“Form S-1”)
with respect to all Registrable Securities requested by the Demanding Holders and Requesting Holders pursuant to such the Demand Registration,
and shall use its reasonable best efforts to cause such Registration Statement to be declared effective by the Commission as soon as practicable
thereafter; provided, however, that the Company may use a Registration Statement on Form S-3 or any successor
form thereto if the Company would qualify to use such form within 30 days after the date on which the initial demand request is given
and the Company shall not be required to file such Registration Statement until it is so qualified. Under no circumstances shall
the Company be obligated to effect more than an aggregate of three (3) Registrations pursuant to a Demand Registration under this
subsection 2.1.1 with respect to any or all Registrable Securities; provided, however, that a Registration shall
not be counted for such purposes unless a Registration Statement has become effective and all of the Registrable Securities requested
by the Requesting Holders to be registered on behalf of the Requesting Holders in such Demand Registration have been sold in accordance
with Section 3.1 of this Agreement.
2.1.2 Effective
Registration. Notwithstanding the provisions of subsection 2.1.1 above or any other part of this Agreement, a Registration
pursuant to a Demand Registration shall not count as a Registration unless and until (i) the Registration Statement filed with the
Commission with respect to a Registration pursuant to a Demand Registration has been declared effective by the Commission and (ii) the
Company has complied with all of its obligations under this Agreement with respect thereto; provided, however, that if after
such Registration Statement has been declared effective, an offering of Registrable Securities in a Registration pursuant to a Demand
Registration is subsequently interfered with by any stop order or injunction of the Commission, federal or state court or any other governmental
agency the Registration Statement with respect to such Registration shall be deemed not to have been declared effective, unless and until,
(x) such stop order or injunction is removed, rescinded or otherwise terminated, and (y) a majority-in-interest of the Demanding
Holders initiating such Demand Registration thereafter affirmatively elect to continue with such Registration and accordingly notify the
Company in writing, but in no event later than five (5) days, of such election; and, provided, further, that the Company
shall not be obligated or required to file another Registration Statement until the Registration Statement that has been previously filed
with respect to a Registration pursuant to a Demand Registration becomes effective or is subsequently terminated.
2.1.3 Underwritten
Offering. Subject to the provisions of subsection 2.1.4 and Section 2.4 hereof, if a majority-in-interest of the
Demanding Holders so advise the Company as part of their Demand Registration that the offering of the Registrable Securities pursuant
to such Demand Registration shall be in the form of an Underwritten Offering, then the right of such Demanding Holder or Requesting Holder
(if any) to include its Registrable Securities in such Registration shall be conditioned upon such Holder’s participation in such
Underwritten Offering and the inclusion of such Holder’s Registrable Securities in such Underwritten Offering to the extent provided
herein. All such Holders proposing to distribute their Registrable Securities through an Underwritten Offering under this subsection
2.1.3 shall enter into an underwriting agreement in customary form with the Underwriter(s) selected for such Underwritten Offering
by a majority-in-interest of the Demanding Holders initiating the Demand Registration.
2.1.4 Reduction
of Underwritten Offering. If the managing Underwriter or Underwriters in an Underwritten Registration pursuant to a Demand Registration,
in good faith, advises the Company, the Demanding Holders and the Requesting Holders (if any) in writing that the dollar amount or number
of Registrable Securities that the Demanding Holders and the Requesting Holders (if any) desire to sell, taken together with all other
shares of Common Stock or other equity securities that the Company desires to sell and the shares of Common Stock, if any, as to which
a Registration has been requested pursuant to separate written contractual piggy-back registration rights held by any other stockholders
who desire to sell, exceeds the maximum dollar amount or maximum number of equity securities that can be sold in the Underwritten Offering
without adversely affecting the proposed offering price, the timing, the distribution method, or the probability of success of such offering
(such maximum dollar amount or maximum number of such securities, as applicable, the “Maximum Number of Securities”),
then the Company shall include in such Underwritten Offering, as follows: (i) first, the Registrable Securities of the Demanding
Holders and the Requesting Holders (if any) (pro rata based on the respective number of Registrable Securities that each Demanding Holder
and Requesting Holder (if any) has requested be included in such Underwritten Registration and the aggregate number of Registrable Securities
that the Demanding Holders and Requesting Holders have collectively requested be included in such Underwritten Registration (such proportion
is referred to herein as “Pro Rata”)) that can be sold without exceeding the Maximum Number of Securities; (ii) second,
to the extent that the Maximum Number of Securities has not been reached under the foregoing clause (i), the shares of Common Stock or
other equity securities that the Company desires to sell that can be sold without exceeding the Maximum Number of Securities; (iii) third,
to the extent that the Maximum Number of Securities has not been reached under the foregoing clauses (i) and (ii), the Registrable
Securities of Holders (Pro Rata, based on the respective number of Registrable Securities that each Holder has so requested) exercising
their rights to register their Registrable Securities pursuant to subsection 2.2.1 hereof, which can be sold without exceeding
the Maximum Number of Securities; and (iv) fourth, to the extent that the Maximum Number of Securities has not been reached under
the foregoing clauses (i), (ii) and (iii), the shares of Common Stock or other equity securities of other persons or entities
that the Company is obligated to register in a Registration pursuant to separate written contractual arrangements with such persons and
that can be sold without exceeding the Maximum Number of Securities.
2.1.5 Demand Registration
Withdrawal. A majority-in-interest of the Demanding Holders initiating a Demand Registration or a majority-in-interest of the Requesting
Holders (if any), pursuant to a Registration under subsection 2.1.1 shall have the right in their sole discretion to withdraw from
a Registration pursuant to such Demand Registration upon written notification to the Company and the Underwriter or Underwriters (if any)
of their intention to withdraw from such Registration prior to the effectiveness of the Registration Statement filed with the Commission
with respect to the Registration of their Registrable Securities pursuant to such Demand Registration. Notwithstanding anything to the
contrary in this Agreement, the Company shall be responsible for the Registration Expenses incurred in connection with a Registration
pursuant to a Demand Registration prior to its withdrawal under this subsection 2.1.5.
2.2 Piggy-back
Registration.
2.2.1 Piggy-back
Rights. If, at any time on or after the date the Company consummates a Business Combination, the Company proposes to file a Registration
Statement under the Securities Act with respect to an offering of equity securities, or securities or other obligations exercisable or
exchangeable for, or convertible into equity securities, for its own account or for the account of stockholders of the Company (or by
the Company and by the stockholders of the Company including, without limitation, pursuant to Section 2.1 hereof), other than
a Registration Statement (i) filed in connection with any employee stock option or other benefit plan, (ii) for an exchange
offer, as part of a merger, consolidation or similar transaction or for an offering of securities solely to the Company’s existing
stockholders, (iii) for an offering of debt that is convertible into equity securities of the Company, or (iv) for a dividend
reinvestment plan, then the Company shall give written notice of such proposed filing to all of the Holders of Registrable Securities
as soon as practicable but not less than ten (10) days before the anticipated filing date of such Registration Statement, which notice
shall (A) describe the amount and type of securities to be included in such offering, the intended method(s) of distribution,
and the name of the proposed managing Underwriter or Underwriters, if any, in such offering, and (B) offer to all of the Holders
of Registrable Securities the opportunity to register the sale of such number of Registrable Securities as such Holders may request in
writing within five (5) Business Days after receipt of such written notice (such Registration a “Piggy-back Registration”).
The Company shall, in good faith, cause such Registrable Securities to be included in such Piggy-back Registration and shall use its best
efforts to cause the managing Underwriter or Underwriters of a proposed Underwritten Offering to permit the Registrable Securities requested
by the Holders pursuant to this subsection 2.2.1 to be included in a Piggy-back Registration on the same terms and conditions as
any similar securities of the Company included in such Registration and to permit the sale or other disposition of such Registrable Securities
in accordance with the intended method(s) of distribution thereof. All such Holders proposing to distribute their Registrable Securities
through an Underwritten Offering under this subsection 2.2.1 shall enter into an underwriting agreement in customary form with
the Underwriter(s) selected for such Underwritten Offering by the Company. The Company may postpone or withdraw the filing or the
effectiveness of a Piggyback Registration at any time in its sole discretion.
2.2.2 Reduction
of Piggy-back Registration. If the managing Underwriter or Underwriters in an Underwritten Registration that is to be a Piggy-back
Registration, in good faith, advises the Company and the Holders of Registrable Securities participating in the Piggy-back Registration
in writing that the dollar amount or number of the shares of Common Stock that the Company desires to sell, taken together with (i) the
shares of Common Stock, if any, as to which Registration has been demanded pursuant to separate written contractual arrangements with
persons or entities other than the Holders of Registrable Securities hereunder, (ii) the Registrable Securities as to which registration
has been requested pursuant to Section 2.2.1 hereof, and (iii) the shares of Common Stock, if any, as to which Registration
has been requested pursuant to separate written contractual piggy-back registration rights of other stockholders of the Company, exceeds
the Maximum Number of Securities, then:
(a) If the Registration
is undertaken for the Company’s account, the Company shall include in any such Registration (A) first, the shares of Common
Stock or other equity securities that the Company desires to sell, which can be sold without exceeding the Maximum Number of Securities;
(B) second, to the extent that the Maximum Number of Securities has not been reached under the foregoing clause (A), the Registrable
Securities of Holders exercising their rights to register their Registrable Securities pursuant to subsection 2.2.1 hereof, Pro
Rata, which can be sold without exceeding the Maximum Number of Securities; and (C) third, to the extent that the Maximum Number
of Securities has not been reached under the foregoing clauses (A) and (B), the shares of Common Stock, if any, as to which Registration
has been requested pursuant to written contractual piggy-back registration rights of other stockholders of the Company, which can be sold
without exceeding the Maximum Number of Securities; and
(b) If the Registration
is pursuant to a request by persons or entities other than the Holders of Registrable Securities, then the Company shall include in any
such Registration (A) first, the shares of Common Stock or other equity securities, if any, of such requesting persons or entities,
which can be sold without exceeding the Maximum Number of Securities; (B) second, to the extent that the Maximum Number of Securities
has not been reached under the foregoing clause (A), the Registrable Securities of Holders exercising their rights to register their Registrable
Securities pursuant to subsection 2.2.1, Pro Rata, which can be sold without exceeding the Maximum Number of Securities (C) third,
to the extent that the Maximum Number of Securities has not been reached under the foregoing clauses (A) and (B), the shares of Common
Stock or other equity securities that the Company desires to sell which can be sold without exceeding the Maximum Number of Securities;
and (D) fourth, to the extent that the Maximum Number of Securities has not been reached under the foregoing clauses (A), (B) and
(C), the shares of Common Stock or other equity securities for the account of other persons or entities that the Company is obligated
to register pursuant to separate written contractual arrangements with such persons or entities, which can be sold without exceeding the
Maximum Number of Securities.
2.2.3 Piggy-back
Registration Withdrawal. Any Holder of Registrable Securities shall have the right to withdraw from a Piggy-back Registration for
any or no reason whatsoever upon written notification to the Company and the Underwriter or Underwriters (if any) of his, her or its intention
to withdraw from such Piggy-back Registration prior to the effectiveness of the Registration Statement filed with the Commission with
respect to such Piggy-back Registration. The Company (in its sole discretion or as the result of a request for withdrawal by persons pursuant
to separate written contractual obligations) may postpone or withdraw the filing or effectiveness of a Piggy-back Registration. Notwithstanding
anything to the contrary in this Agreement, the Company shall be responsible for the Registration Expenses incurred in connection with
the Piggy-back Registration prior to its withdrawal under this subsection 2.2.3.
2.2.4 Unlimited
Piggy-back Registration Rights. For purposes of clarity, any Registration effected pursuant to Section 2.2 hereof shall
not be counted as a Registration pursuant to a Demand Registration effected under Section 2.1 hereof; provided, however,
that the rights to demand a Piggy-back Registration under this Section 2.2 shall terminate on the second anniversary of the
consummation of the Business Combination.
2.3 Registrations
on Form S-3. Provided that the Company has qualified for the use of a Registration Statement on Form S-3 or any
successor form thereto, any Holder of Registrable Securities may, at any time, and from time to time, request in writing that the Company,
pursuant to Rule 415 under the Securities Act (or any successor rule promulgated thereafter by the Commission), register the
resale of any or all of their Registrable Securities on Form S-3 or any similar short-form Registration Statement that may be available
at such time (“Form S-3”); provided, however, that the Company shall not be obligated to
effect such request through an Underwritten Offering. Within ten (10) days of the Company’s receipt of a written request from
a Holder or Holders of Registrable Securities for a Registration on Form S-3, the Company shall promptly give written notice of the
proposed Registration on Form S-3 to all other Holders of Registrable Securities, and each Holder of Registrable Securities who thereafter
wishes to include all or a portion of such Holder’s Registrable Securities in such Registration on Form S-3 shall so notify
the Company, in writing, within five (5) days after the receipt by the Holder of the notice from the Company. As soon as practicable
thereafter, but not more than thirty (30) days after the Company’s initial receipt of such written request for a Registration
on Form S-3, the Company shall file a Registration Statement on Form S-3 with respect to the Registrable Securities of such
Holder(s) as are specified in such written request, together with all or such portion of Registrable Securities of any other Holder
or Holders joining in such request as are specified in the written notification given by such Holder or Holders, and shall use its reasonable
best efforts to cause such Registration Statement to be declared effective by the Commission as soon as practicable thereafter; provided,
however, that the Company shall not be obligated to effect any such Registration pursuant to Section 2.3 hereof if
(i) a Form S-3 is not available for such offering; or (ii) the Holders of Registrable Securities, together with the Holders
of any other equity securities of the Company entitled to inclusion in such Registration, propose to sell the Registrable Securities and
such other equity securities (if any) at any aggregate price to the public of less than $10,000,000. The rights to demand Registration
on Form S-3 under this Section 2.3 shall terminate on the third anniversary of the Business Combination.
2.4 Restrictions
on Registration Rights. The Company shall not be obligated to effect any Demand Registration within 180 days after the effective
date of a previous Demand Registration or a previous Piggy-back Registration in which holders of Registrable Securities
were permitted to register, and actually sold, 75% of the Registrable Securities requested to be included therein. The Company may postpone
for up to 120 days the filing or effectiveness of (A) a Registration Statement for a Demand Registration if the Holders
have requested an Underwritten Registration and the Company and the Holders are unable to obtain the commitment of underwriters to firmly
underwrite the offer, or (B) a Registration Statement for a Demand Registration or a Registration on Form S-3 if the Registration
Statement is required under applicable law, rule or regulation to contain (i) financial statements that are unavailable to the
Company for reasons beyond the Company’s control, (ii) audited financial statements as of a date other than the Company’s
fiscal year end (unless the Holders requesting Registration agree to pay the reasonable expenses of this audit), (iii) pro
forma financial statements that are required to be included in a registration statement, or if the Board determines in
its reasonable good faith judgment that such Demand Registration would (x) materially interfere with a significant acquisition,
corporate organization or other similar transaction involving the Company, (y) require the Company to make an Adverse Disclosure
or (z) render the Company unable to comply with requirements under the Securities Act or Exchange Act; provided, that
in such event the Holders of a majority-in-interest of the Registrable Securities initiating a Demand Registration shall be
entitled to withdraw such request and, if such request is withdrawn, such Demand Registration shall not count as one of the
permitted Demand Registrations hereunder and the Company shall pay all Registration Expenses in connection with such Registration.
The Company may delay a Demand Registration hereunder only twice in any period of twelve consecutive months.
ARTICLE III
COMPANY PROCEDURES
3.1 General Procedures.
If at any time on or after the date the Company consummates a Business Combination the Company is required to effect the Registration
of Registrable Securities, the Company shall use its best efforts to effect such Registration to permit the sale of such Registrable Securities
in accordance with the intended plan of distribution thereof, and pursuant thereto the Company shall:
3.1.1 prepare and file
with the Commission a Registration Statement with respect to such Registrable Securities and use its reasonable best efforts to cause
such Registration Statement to become effective and remain effective until all Registrable Securities covered by such Registration Statement
have been sold;
3.1.2 prepare and file
with the Commission such amendments and post-effective amendments to the Registration Statement, and such supplements to the Prospectus,
as may be requested by any Holder or any Underwriter of Registrable Securities or as may be required by the rules, regulations or instructions
applicable to the registration form used by the Company or by the Securities Act or rules and regulations thereunder to keep the
Registration Statement effective until the earlier of (a) one year following the effective date of the Registration Statement or
(b) until all Registrable Securities covered by such Registration Statement are sold in accordance with the intended plan of distribution
set forth in such Registration Statement or supplement to the Prospectus and either (i) any underwriter overallotment option has
terminated by its terms or (ii) the underwriters have advised the Company that they will not exercise such option or any remaining
portion thereof;
3.1.3 furnish without
charge to the Underwriters, if any, and each Holder of Registrable Securities included in such Registration, or such Holders’ legal
counsel, copies of the Prospectus included in such Registration Statement (including each preliminary Prospectus), and each amendment
and supplement thereto (in each case including all exhibits thereto and documents incorporated by reference therein), and such other documents
as the Underwriters and each Holder of Registrable Securities included in such Registration or the legal counsel for any such Holders
may reasonably request in order to facilitate the disposition of the Registrable Securities owned by such Holders;
3.1.4 prior to any
public offering of Registrable Securities, use its best efforts to (i) register or qualify the Registrable Securities covered by
the Registration Statement under such securities or “blue sky” laws of such jurisdictions in the United States as any Holder
of Registrable Securities included in such Registration Statement (in light of their intended plan of distribution) may reasonably request
and (ii) take such action necessary to cause such Registrable Securities covered by the Registration Statement to be registered with
or approved by such other governmental authorities as may be necessary by virtue of the business and operations of the Company and do
any and all other acts and things that may be reasonably necessary or advisable to enable the Holders of Registrable Securities included
in such Registration Statement to consummate the disposition of such Registrable Securities in such jurisdictions; provided, however,
that the Company shall not be required to qualify generally to do business in any jurisdiction where it would not otherwise be required
to qualify or take any action to which it would be subject to general service of process or taxation in any such jurisdiction where it
is not then otherwise so subject;
3.1.5 use commercially
reasonable efforts to cause all such Registrable Securities to be listed on each securities exchange or automated quotation system on
which similar securities issued by the Company are then listed;
3.1.6 provide a transfer
agent or warrant agent, as applicable, and registrar for all such Registrable Securities no later than the effective date of such Registration
Statement;
3.1.7 advise each seller
of such Registrable Securities, promptly after it shall receive notice or obtain knowledge thereof, of the issuance of any stop order
by the Commission suspending the effectiveness of such Registration Statement or the initiation or threatening of any proceeding for such
purpose and promptly use its commercially reasonable best efforts to prevent the issuance of any stop order or to obtain its withdrawal
if such stop order should be issued;
3.1.8 at least five
(5) days prior to the filing of any Registration Statement or Prospectus or any amendment or supplement to such Registration Statement
or Prospectus or any document that is to be incorporated by reference into such Registration Statement or Prospectus, furnish a copy thereof
to each seller of such Registrable Securities and its counsel, including, without limitation, providing copies promptly upon receipt of
any comment letters received with respect to any such Registration Statement or Prospectus. The Company shall not include the name of
any Holder or any information regarding any Holder in any Registration Statement or Prospectus, any amendment or supplement to such Registration
Statement or Prospectus, any document that is to be incorporated by reference into such Registration Statement or Prospectus, or any response
to any comment letter, without the prior written consent of such Holder and providing each such Holder a reasonable amount of time to
review and comment on such applicable document, which comments the Company shall include unless contrary to applicable law;
3.1.9 notify the Holders
at any time when a Prospectus relating to such Registration Statement is required to be delivered under the Securities Act, of the happening
of any event as a result of which the Prospectus included in such Registration Statement, as then in effect, includes a Misstatement,
and then to correct such Misstatement as set forth in Section 3.4 hereof;
3.1.10 in the event
of an Underwritten Offering, permit the participating Holders to rely on any “cold comfort” letter from the Company’s
independent registered public accountants provided to the managing Underwriter of such offering;
3.1.11 in the event
of an Underwritten Offering, permit the participating Holders to rely on any opinion(s) of counsel representing the Company for the
purposes of such Registration issued to the managing Underwriter of such offering covering legal matters with respect to the Registration;
3.1.12 in the event
of any Underwritten Offering, enter into and perform its obligations under an underwriting agreement, in usual and customary form, with
the managing Underwriter of such offering;
3.1.13 make available
to its security holders, as soon as reasonably practicable, an earnings statement covering the period of at least twelve (12) months
beginning with the first day of the Company’s first full calendar quarter after the effective date of the Registration Statement
which satisfies the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder, and which requirement will
be deemed to be satisfied if the Company timely files complete and accurate information on Forms 10-Q, 10-K and 8-K under the Exchange
Act and otherwise complies with Rule 158 under the Securities Act;
3.1.14 if the Registration
involves the Registration of Registrable Securities involving gross proceeds in excess of $25,000,000, use its reasonable efforts to make
available senior executives of the Company to participate in customary “road show” presentations that may be reasonably requested
by the Underwriter in any Underwritten Offering; and
3.1.15 otherwise, in
good faith, cooperate reasonably with, and take such customary actions as may reasonably be requested by the Holders, in connection with
such Registration.
3.2 Registration
Expenses. The Registration Expenses of all Registrations shall be borne by the Company. It is acknowledged by the Holders that the
Holders shall bear all incremental selling expenses relating to the sale of Registrable Securities, such as Underwriters’ commissions
and discounts, brokerage fees, Underwriter marketing costs and all fees and expenses of any legal counsel representing the Holders.
3.3 Requirements
for Participation in Underwritten Offerings. No person may participate in any Underwritten Offering for equity securities of the Company
pursuant to a Registration initiated by the Company hereunder unless such person (i) agrees to sell such person’s securities
on the basis provided in any underwriting arrangements approved by the Company and (ii) completes and executes all customary questionnaires,
powers of attorney, indemnities, lock-up agreements, underwriting agreements and other customary documents as may be reasonably required
under the terms of such underwriting arrangements.
3.4 Suspension
of Sales; Adverse Disclosure. Upon receipt of written notice from the Company that a Registration Statement or Prospectus contains
a Misstatement, each of the Holders shall forthwith discontinue disposition of Registrable Securities until he, she or it is advised in
writing by the Company that the use of the Prospectus may be resumed and he, she or it has received copies of a supplemented or amended
Prospectus correcting the Misstatement (it being understood that the Company hereby covenants to prepare and file such supplement or amendment
as soon as reasonably practicable after the time of such notice) and, if so directed by the Company, each Holder shall deliver to the
Company (at the Company’s expense) all copies, other than permanent file copies then in such Holder’s possession, of the Prospectus
covering such Registrable Securities at the time of receipt of such notice. If the continued use of a Registration Statement in respect
of any Registration at any time would require the Company to make an Adverse Disclosure, or would require the inclusion in such Registration
Statement of (i) financial statements that are unavailable to the Company for reasons beyond the Company’s control, (ii) audited
financial statements as of a date other than the Company’s fiscal year end (unless the Holders requesting Registration agree
to pay the reasonable expenses of this audit), or (iii) pro forma financial statements that are required to be included in a registration statement,
the Company may, upon giving prompt written notice of such action to the Holders, delay the filing or initial effectiveness of, or suspend
use of, such Registration Statement for no more than 180 days. In the event the Company exercises its rights under the preceding
sentence, the Holders agree to suspend, immediately upon their receipt of the notice referred to above, their use of the Prospectus relating
to any Registration in connection with any sale or offer to sell Registrable Securities. The Company shall immediately notify the Holders
of the expiration of any period during which it exercised its rights under this Section 3.4.
3.5 Reporting Obligations.
As long as any Holder shall own Registrable Securities, the Company, at all times while it shall be reporting under the Exchange Act,
covenants to use reasonable best efforts to file timely (or obtain extensions in respect thereof and file within the applicable grace
period) all reports required to be filed by the Company after the date hereof pursuant to Sections 13(a) or 15(d) of the Exchange
Act and to promptly upon request by a Holder furnish such Holder with true and complete copies of such filings. The Company further covenants
that it shall take such further action as any Holder may reasonably request, all to the extent required from time to time to enable such
Holder to sell shares of Common Stock held by such Holder without registration under the Securities Act within the limitation of the exemptions
provided by Rule 144 promulgated under the Securities Act, including providing any legal opinions. Upon the request of any Holder,
the Company shall deliver to such Holder a written certification of a duly authorized officer as to whether it has complied with such
requirements.
ARTICLE IV
INDEMNIFICATION AND CONTRIBUTION
4.1 Indemnification.
4.1.1 The Company agrees
to indemnify, to the extent permitted by law, each Holder of Registrable Securities, its officers and directors and each person who controls
such Holder (within the meaning of the Securities Act) against all losses, claims, damages, liabilities and expenses (including reasonable
attorneys’ fees) caused by any untrue or alleged untrue statement of material fact contained in any Registration Statement, Prospectus
or preliminary Prospectus or any amendment thereof or supplement thereto or any omission or alleged omission of a material fact required
to be stated therein or necessary to make the statements therein not misleading, except insofar as the same are caused by or contained
in any information furnished in writing to the Company by such Holder expressly for use therein. The Company shall indemnify the Underwriters,
their officers and directors and each person who controls such Underwriters (within the meaning of the Securities Act) to the same extent
as provided in the foregoing with respect to the indemnification of the Holder.
4.1.2 In connection
with any Registration Statement in which a Holder of Registrable Securities is participating, such Holder shall furnish to the Company
in writing such information and affidavits as the Company reasonably requests for use in connection with any such Registration Statement
or Prospectus and, to the extent permitted by law, shall indemnify the Company, its directors and officers and agents and each person
who controls the Company (within the meaning of the Securities Act) against any losses, claims, damages, liabilities and expenses (including,
without limitation, reasonable attorneys’ fees) resulting from any untrue statement of material fact contained in the Registration
Statement, Prospectus or preliminary Prospectus or any amendment thereof or supplement thereto or any omission of a material fact required
to be stated therein or necessary to make the statements therein not misleading, but only to the extent that such untrue statement or
omission is contained in any information or affidavit so furnished in writing by such Holder expressly for use therein; provided,
however, that the obligation to indemnify shall be several, not joint and several, among such Holders of Registrable Securities,
and the liability of each such Holder of Registrable Securities shall be in proportion to and limited to the net proceeds received by
such Holder from the sale of Registrable Securities pursuant to such Registration Statement. The Holders of Registrable Securities shall
indemnify the Underwriters, their officers, directors and each person who controls such Underwriters (within the meaning of the Securities
Act) to the same extent as provided in the foregoing with respect to indemnification of the Company.
4.1.3 Any person entitled
to indemnification herein shall (i) give prompt written notice to the indemnifying party of any claim with respect to which it seeks
indemnification (provided that the failure to give prompt notice shall not impair any person’s right to indemnification hereunder
to the extent such failure has not materially prejudiced the indemnifying party) and (ii) unless in such indemnified party’s
reasonable judgment a conflict of interest between such indemnified and indemnifying parties may exist with respect to such claim, permit
such indemnifying party to assume the defense of such claim with counsel reasonably satisfactory to the indemnified party. If such defense
is assumed, the indemnifying party shall not be subject to any liability for any settlement made by the indemnified party without its
consent (but such consent shall not be unreasonably withheld). An indemnifying party who is not entitled to, or elects not to, assume
the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel (plus local counsel) for all parties
indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party a conflict
of interest may exist between such indemnified party and any other of such indemnified parties with respect to such claim. No indemnifying
party shall, without the consent of the indemnified party, consent to the entry of any judgment or enter into any settlement which cannot
be settled in all respects by the payment of money (and such money is so paid by the indemnifying party pursuant to the terms of such
settlement) or which settlement does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified
party of a release from all liability in respect to such claim or litigation.
4.1.4 The indemnification
provided for under this Agreement shall remain in full force and effect regardless of any investigation made by or on behalf of the indemnified
party or any officer, director or controlling person of such indemnified party and shall survive the transfer of securities. The Company
and each Holder of Registrable Securities participating in an offering also agrees to make such provisions as are reasonably requested
by any indemnified party for contribution to such party in the event the Company’s or such Holder’s indemnification is unavailable
for any reason.
4.1.5 If the indemnification
provided under Section 4.1 hereof from the indemnifying party is unavailable or insufficient to hold harmless an indemnified
party in respect of any losses, claims, damages, liabilities and expenses referred to herein, then the indemnifying party, in lieu of
indemnifying the indemnified party, shall contribute to the amount paid or payable by the indemnified party as a result of such losses,
claims, damages, liabilities and expenses in such proportion as is appropriate to reflect the relative fault of the indemnifying party
and the indemnified party, as well as any other relevant equitable considerations. The relative fault of the indemnifying party and indemnified
party shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue
statement of a material fact or omission or alleged omission to state a material fact, was made by, or relates to information supplied
by, such indemnifying party or indemnified party, and the indemnifying party’s and indemnified party’s relative intent, knowledge,
access to information and opportunity to correct or prevent such action; provided, however, that the liability of any Holder
under this subsection 4.1.5 shall be limited to the amount of the net proceeds received by such Holder in such offering giving
rise to such liability. The amount paid or payable by a party as a result of the losses or other liabilities referred to above shall be
deemed to include, subject to the limitations set forth in subsections 4.1.1, 4.1.2 and 4.1.3 above, any legal or
other fees, charges or expenses reasonably incurred by such party in connection with any investigation or proceeding. The parties hereto
agree that it would not be just and equitable if contribution pursuant to this subsection 4.1.5 were determined by pro rata allocation
or by any other method of allocation, which does not take account of the equitable considerations referred to in this subsection 4.1.5.
No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled
to contribution pursuant to this subsection 4.1.5 from any person who was not guilty of such fraudulent misrepresentation.
ARTICLE V
MISCELLANEOUS
5.1 Notices.
Any notice or communication under this Agreement must be in writing and given by (i) deposit in the United States mail, addressed
to the party to be notified, postage prepaid and registered or certified with return receipt requested, (ii) delivery in person or
by courier service providing evidence of delivery, or (iii) transmission by hand delivery, electronic mail or facsimile. Each notice
or communication that is mailed, delivered, or transmitted in the manner described above shall be deemed sufficiently given, served, sent,
and received, in the case of mailed notices, on the third business day following the date on which it is mailed and, in the case of notices
delivered by courier service, hand delivery, electronic mail or facsimile, at such time as it is delivered to the addressee (with the
delivery receipt of the intended recipient or the affidavit of messenger) or at such time as delivery is refused by the addressee upon
presentation. Any notice or communication under this Agreement must be addressed to
the Company at:
FTAC Emerald Acquisition Corp.
2929 Arch Street, Suite 1703
Philadelphia, PA 19104-2870
Attention: Bracebridge H. Young, Jr.
Email: [•]
with a copy to:
Reed Smith LLP
599 Lexington Avenue, 22nd
Floor
New York, NY 10022
Attention: Ari Edelman
Email: aedelman@reedsmith.com
Facsimile: (212) 521-5450
and to the Holders, at such Holder’s address
referenced in Schedule A.
Any party may change its address for notice at
any time and from time to time by written notice to the other parties hereto, and such change of address shall become effective thirty
(30) days after delivery of such notice as provided in this Section 5.1.
5.2 Assignment;
No Third Party Beneficiaries.
5.2.1 This Agreement
and the rights, duties and obligations of the Company hereunder may not be assigned or delegated by the Company in whole or in part. Prior
to the expiration of the Founder Lock-up Period or Placement Unit Lock-up Period, as the case may be, no Holder may assign or delegate
his, her or its rights, duties or obligations under this Agreement in whole or in part. Notwithstanding the above, as it applies to the
Registrable Securities, the Holder may transfer such securities during the respective lock-up period to any Permitted Transferee (as such
term is defined in that certain Warrant Agreement between the Company and Continental Stock Transfer & Trust Company) but
only if such Permitted Transferee agrees to become bound by the transfer restrictions set forth in this Agreement and the Letter Agreement.
5.2.2 Except as set
forth in subsection 5.2.1 hereof, this Agreement and the rights, duties and obligations of the Holders of Registrable Securities
hereunder may be assigned or delegated by such Holder of Registrable Securities in conjunction with and to the extent of any transfer
of Registrable Securities by any such Holder.
5.2.3 This Agreement
and the provisions hereof shall be binding upon and shall inure to the benefit of each of the Holders, the permitted assigns and its successors
and the permitted assigns of the Holders.
5.2.4 This Agreement
shall not confer any rights or benefits on any persons that are not parties hereto, other than as expressly set forth in this Agreement
and Section 5.2 hereof.
5.2.5 No assignment
by any party hereto of such party’s rights, duties and obligations hereunder shall be binding upon or obligate the Company unless
and until the Company shall have received (i) written notice of such assignment as provided in Section 5.1 hereof and
(ii) the written agreement of the assignee, in a form reasonably satisfactory to the Company, to be bound by the terms and provisions
of this Agreement (which may be accomplished by an addendum or certificate of joinder to this Agreement). Any transfer or assignment made
other than as provided in this Section 5.2 shall be null and void.
5.3 Counterparts.
This Agreement may be executed in multiple counterparts (including facsimile or PDF counterparts), each of which shall be deemed an original,
and all of which together shall constitute the same instrument, but only one of which need be produced.
5.4 Governing Law;
Venue. THE PARTIES EXPRESSLY AGREE THAT THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED UNDER THE LAWS OF THE STATE OF NEW YORK,
WITHOUT REGARD TO THE CONFLICT OF LAW PROVISIONS OF SUCH JURISDICTION. Any legal suit, action or proceeding arising out of or based upon
this Agreement or the transactions contemplated hereby may be instituted in the federal courts of the United States or the courts
of the State of New York in each case located in the city of New York, and each party irrevocably submits to the exclusive jurisdiction
of such courts in any such suit, action or proceeding.
5.5 Amendments
and Modifications. Upon the written consent of the Company and the Holders of at least a majority in interest of the then outstanding
Registrable Securities, compliance with any of the provisions, covenants and conditions set forth in this Agreement may be waived, or
any of such provisions, covenants or conditions may be amended or modified; provided, however, that notwithstanding the
foregoing, any amendment hereto or waiver hereof that adversely affects one Holder, solely in its capacity as a holder of the shares of
capital stock of the Company, in a manner that is materially different from the other Holders (in such capacity) shall require the consent
of the Holder so affected. No course of dealing between any Holder or the Company and any other party hereto or any failure or delay on
the part of a Holder or the Company in exercising any rights or remedies under this Agreement shall operate as a waiver of any rights
or remedies of any Holder or the Company. No single or partial exercise of any rights or remedies under this Agreement by a party shall
operate as a waiver or preclude the exercise of any other rights or remedies hereunder or thereunder by such party.
5.6 Other Registration
Rights. The Company represents and warrants that no person, other than a Holder of Registrable Securities, has any right to require
the Company to register any securities of the Company for sale or to include such securities of the Company in any Registration filed
by the Company for the sale of securities for its own account or for the account of any other person.
5.7 Termination.
This Agreement shall terminate upon the earlier of (i) the fifth anniversary of the date of this Agreement or (ii) the date
as of which (A) all of the Registrable Securities have either been sold pursuant to a Registration Statement or cease to be Registrable
Securities (but in no event prior to the applicable period referred to in Section 4(3) of the Securities Act and Rule 174
thereunder) or (B) the Holders of all Registrable Securities are permitted to sell the Registrable Securities under Rule 144
(or any similar provision) under the Securities Act without limitation on the amount of securities sold or the manner of sale. The provisions
of Section 3.5 and Article IV shall survive any termination.
[SIGNATURE PAGES FOLLOW]
IN WITNESS WHEREOF,
the undersigned have caused this Agreement to be executed as of the date first written above.
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COMPANY:
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FTAC EMERALD ACQUISITION CORP.
a Delaware corporation
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By:
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Name:
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Bracebridge H. Young, Jr.
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Title:
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President and Chief Executive Officer
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HOLDERS:
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EMERALD ESG SPONSOR, LLC
a Delaware limited liability company
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By:
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Name:
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Betsy Cohen
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Title:
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Manager
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[Registration Rights Agreement]
Schedule A
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Holder
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Address
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Emerald ESG Sponsor, LLC
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2929 Arch Street, Suite 1703, Philadelphia, PA 19104
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Exhibit 10.3
UNIT SUBSCRIPTION AGREEMENT
This UNIT SUBSCRIPTION AGREEMENT
(this “Agreement”) is made as of the day of ,
2021, by and between FTAC Emerald Acquisition Corp., a Delaware corporation (the “Company”), having its principal place
of business at 2929 Arch Street, Suite 1703, Philadelphia, PA 19104, and Emerald ESG Sponsor, LLC, a Delaware limited liability
company (“Subscriber”).
WHEREAS, the Company desires
to sell on a private placement basis (the “Offering”) an aggregate of up to 990,000 units (“Units”)
of the Company, each Unit comprised of one share of Class A common stock of the Company, par value $0.0001 per share (“Common
Stock”), and one half of one warrant to purchase one share of Common Stock (“Warrant”), for a purchase price
of up to $9,900,000, or $10.00 per Unit. The shares of Common Stock underlying the Warrants are hereinafter referred to as the “Warrant
Shares.” The shares of Common Stock underlying the Units (excluding the Warrant Shares) are hereinafter referred to as the “Placement
Shares.” The Warrants underlying the Units are hereinafter referred to as the “Placement Warrants.” The Units,
Placement Shares, Placement Warrants and Warrant Shares, collectively, are hereinafter referred to as the “Securities.”
Placement Warrants may be exercised only to the extent that, when aggregated with other Placement Warrants being exercised, the exercise
is for a whole share or whole shares; no fractional shares shall be issuable. The exercise price for any Warrant Share shall be $11.50.
Subject to the foregoing, the Placement Warrants are exercisable during the period commencing 30 days following the consummation of the
Company’s initial business combination (the “Business Combination”), as such term is defined in the registration
statement filed in connection with the Company’s initial public offering of units (the “IPO”), as amended at
the time it becomes effective (the “Registration Statement”), and expiring on the fifth anniversary of the consummation
of the Business Combination; and
WHEREAS, Subscriber wishes
to purchase up to 990,000 Units and the Company wishes to accept such subscription from Subscriber.
NOW, THEREFORE, in consideration
of the premises and the mutual covenants hereinafter set forth and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Company and the Subscriber hereby agree as follows:
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1.
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Agreement to Subscribe
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1.1
Purchase and Issuance of the Units. Upon the terms and subject to the conditions of this Agreement, Subscriber hereby agrees
to purchase from the Company, and the Company hereby agrees to sell to Subscriber, on the Closing Date (as defined below), up to 990,000
Units for a purchase price of $9,900,000 (the “Purchase Price”).
1.2
Delivery of the Purchase Price. Upon execution of this Agreement, the Company is bound to fulfill its obligations hereunder
and Subscriber hereby irrevocably commits to deliver either directly into a trust account (the “Trust Account”) held
at JP Morgan Chase Bank, N.A. or any other financial institution chosen by the Company, or with Continental Stock Transfer &
Trust Company acting as trustee (“Continental”), the Purchase Price in immediately available funds by wire transfer
or such other form of payment as shall be acceptable to the Trustee, in its sole and absolute discretion, one (1) business day prior
to the effective date of the Registration Statement.
1.3
Closing. The closing of the Offering (the “Closing”), shall take place at the offices of Reed Smith LLP,
simultaneously with the closing of the IPO on or before [•] (the “Closing Date”).
1.4
Termination. This Agreement and each of the obligations of the undersigned shall be null and void and without effect if the
Closing does not occur prior to [January 31, 2022].
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2.
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Representations and Warranties of Subscriber
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Subscriber represents and
warrants to the Company that:
2.1
No Government Recommendation or Approval. Subscriber understands that no federal or state agency has passed upon or made any
recommendation or endorsement of the Company or the Offering of the Securities.
2.2
Accredited Investor. Subscriber represents that it is an “accredited investor” as such term is defined in Rule 501(a) of
Regulation D under the Securities Act of 1933, as amended (the “Securities Act”), and acknowledges that the sale contemplated
hereby is being made in reliance, among other things, on a private placement exemption to “accredited investors” under the
Securities Act and similar exemptions under state law.
2.3
Intent. Subscriber is purchasing the Securities solely for investment purposes, for Subscriber’s own account (and/or
for the account or benefit of its members or affiliates, as permitted, pursuant to the terms of an agreement (the “Letter Agreement”)
to be entered into with respect to the Securities between, among others, Subscriber and the Company, as described in the Registration
Statement), and not with a view to the distribution thereof and Subscriber has no present arrangement to sell the Securities to or through
any person or entity except as may be permitted under the Letter Agreement. Subscriber shall not engage in hedging transactions with regard
to the Securities unless in compliance with the Securities Act.
2.4
Restrictions on Transfer. Subscriber acknowledges and understands the Units are being offered in a transaction not involving
a public offering in the United States within the meaning of the Securities Act. The Securities have not been registered under the Securities
Act and, if in the future Subscriber decides to offer, resell, pledge or otherwise transfer the Securities, such Securities may be offered,
resold, pledged or otherwise transferred only (A) pursuant to an effective registration statement filed under the Securities Act,
(B) pursuant to an exemption from registration under Rule 144 promulgated under the Securities Act, if available, or (C) pursuant
to any other available exemption from the registration requirements of the Securities Act, and in each case in accordance with any applicable
securities laws of any state or any other jurisdiction. Notwithstanding the foregoing, Subscriber acknowledges and understands the Securities
are subject to transfer restrictions as described in Section 8 hereof. Subscriber agrees that, if any transfer of its Securities
or any interest therein is proposed to be made, as a condition precedent to any such transfer Subscriber may be required to deliver to
the Company an opinion of counsel satisfactory to the Company with respect to such transfer. Absent registration or another available
exemption from registration, Subscriber agrees it will not transfer the Securities (unless otherwise permitted pursuant to the Letter
Agreement, as described in the Registration Statement). Subscriber further acknowledges that because the Company is a shell company, Rule 144
may not be available to Subscriber for the resale of the Securities until the one year anniversary following consummation of the Business
Combination, despite technical compliance with the requirements of Rule 144 and the release or waiver of any contractual transfer
restrictions.
2.5 Sophisticated Investor.
(i) Subscriber’s
manager and members are individually accredited investors and are sophisticated in financial matters and able to evaluate the risks and
benefits of the investment in the Securities.
(ii) Subscriber is aware
that an investment in the Securities is highly speculative and subject to substantial risks because, among other things, (a) the
Securities are subject to transfer restrictions and have not been registered under the Securities Act and therefore cannot be sold unless
subsequently registered under the Securities Act or an exemption from such registration is available and (b) Subscriber has waived
its redemption rights with respect to the Securities as set forth in Section 5 hereof, and the Securities held by Subscriber are
not entitled to, and have no right, interest or claim to any monies held in the Trust Account, and accordingly Subscriber may suffer a
loss of a portion or all of its investment in the Securities. Subscriber is able to bear the economic risk of its investment in the Securities
for an indefinite period of time.
2.6
Independent Investigation. Subscriber, in making the decision to purchase the Units, has relied upon an independent investigation
of the Company and has not relied upon any information or representations made by any third parties or upon any oral or written representations
or assurances from the Company, its officers, directors or employees or any other representatives or agents of the Company, other than
as set forth in this Agreement. Subscriber is familiar with the business, operations and financial condition of the Company and has had
an opportunity to ask questions of, and receive answers from the Company’s officers and directors concerning the Company and the
terms and conditions of the Offering and has had full access to such other information concerning the Company as Subscriber has requested.
Subscriber confirms that all documents that it has requested have been made available and that Subscriber has been supplied with all of
the additional information concerning this investment which Subscriber has requested.
2.7
Organization and Authority. Subscriber is duly organized, validly existing and in good standing under the laws of the State
of Delaware and it possesses all requisite power and authority necessary to carry out the transactions contemplated by this Agreement.
2.8
Authority. This Agreement has been validly authorized, executed and delivered by Subscriber and is a valid and binding agreement
enforceable in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, fraudulent
conveyance, moratorium, reorganization, or similar laws relating to, or affecting generally the enforcement of, creditors’ rights
and remedies or by equitable principles of general application and except as enforcement of rights to indemnity and contribution may be
limited by federal and state securities laws or principles of public policy.
2.9
No Conflicts. The execution, delivery and performance of this Agreement and the consummation by Subscriber of the transactions
contemplated hereby do not violate, conflict with or constitute a default under (i) Subscriber’s charter documents, (ii) any
agreement or instrument to which Subscriber is a party or (iii) any law, statute, rule or regulation to which Subscriber is
subject, or any agreement, order, judgment or decree to which Subscriber is subject.
2.10
No Legal Advice from Company. Subscriber acknowledges it has had the opportunity to review this Agreement and the transactions
contemplated by this Agreement and the other agreements entered into between the parties hereto with Subscriber’s own legal counsel
and investment and tax advisors. Except for any statements or representations of the Company made in this Agreement and the other agreements
entered into between the parties hereto, Subscriber is relying solely on such review, counsel and advisors and not on any statements or
representations of the Company or any of its representatives or agents for legal, tax or investment advice with respect to this investment,
the transactions contemplated by this Agreement or the securities laws of any jurisdiction.
2.11
Reliance on Representations and Warranties. Subscriber understands the Units are being offered and sold to Subscriber in reliance
on exemptions from the registration requirements under the Securities Act, and analogous provisions in the laws and regulations of various
states, and that the Company is relying upon the truth and accuracy of the representations, warranties, agreements, acknowledgments and
understandings of Subscriber set forth in this Agreement in order to determine the applicability of such provisions.
2.12
No General Solicitation. Subscriber is not subscribing for the Units as a result of or subsequent to any general solicitation
or general advertising, including but not limited to any advertisement, article, notice or other communication published in any newspaper,
magazine, or similar media or broadcast over television or radio, or presented at any seminar or meeting or in a registration statement
with respect to the IPO filed with the Securities and Exchange Commission (“SEC”).
2.13
Legend. Subscriber acknowledges and agrees the certificates evidencing each of the Securities shall bear a restrictive legend
(the “Legend”), in form and substance substantially as set forth in Section 4 hereof.
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3.
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Representations, Warranties and Covenants of the Company
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The Company represents and
warrants to, and agrees with, Subscriber that:
3.1
Valid Issuance of Capital Stock. The total number of shares of all classes of capital stock which the Company has authority
to issue is 52,000,000 shares of Common Stock and 1,000,000 shares of preferred stock, $0.0001 par value per share (“Preferred
Stock”). As of the date hereof, the Company has issued and outstanding 8,763,333 shares of Class B common stock, par value
$0.0001 per share (of which up to 1,133,333 shares are subject to forfeiture) and no shares of Preferred Stock. All of the issued shares
of capital stock of the Company have been duly authorized, validly issued, and are fully paid and non-assessable.
3.2
Title to Securities. Upon issuance in accordance with, and payment pursuant to, the terms hereof and that certain Warrant Agreement
to be entered into between the Company and Continental, as warrant agent (the “Warrant Agreement”), as the case may
be, each of the Units, Placement Shares, Placement Warrants and the Warrant Shares will be duly and validly issued, fully paid and non-assessable.
On the date of issuance of the Units, the Warrant Shares shall have been reserved for issuance. Upon issuance in accordance with, and
payment pursuant to, the terms hereof and the Warrant Agreement, as the case may be, Subscriber will have or receive good title to the
Units, Placement Shares and Placement Warrants, free and clear of all liens, claims and encumbrances of any kind resulting from actions
of, or any failure to act by, the Company, other than (i) transfer restrictions hereunder and pursuant to the Letter Agreement and
(ii) transfer restrictions under federal and state securities laws.
3.3
Organization and Qualification. The Company is a corporation duly incorporated, validly existing and in good standing under
the laws of the State of Delaware and has the requisite corporate power to own its properties and assets and to carry on its business
as now being conducted.
3.4
Authorization; Enforcement. (i) The Company has the requisite corporate power and authority to enter into and perform
its obligations under this Agreement and to issue the Securities in accordance with the terms hereof, (ii) the execution, delivery
and performance of this Agreement by the Company and the consummation by it of the transactions contemplated hereby have been duly authorized
by all necessary corporate action, and no further consent or authorization of the Company or its Board of Directors or stockholders is
required, and (iii) this Agreement constitutes a valid and binding obligation of the Company enforceable against the Company in accordance
with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, fraudulent conveyance, moratorium,
reorganization, or similar laws relating to, or affecting generally the enforcement of, creditors’ rights and remedies or by equitable
principles of general application and except as enforcement of rights to indemnity and contribution may be limited by federal and state
securities laws or principles of public policy.
3.5
No Conflicts. The execution, delivery and performance of this Agreement and the consummation by the Company of the transactions
contemplated hereby do not (i) result in a violation of the Company’s certificate of incorporation or by-laws, (ii) conflict
with, or constitute a default under any agreement or instrument to which the Company is a party or by which it is bound or (iii) violate
any law statute, rule or regulation to which the Company is subject or any agreement, order, judgment or decree to which the Company
is subject. Other than any SEC or state securities filings which may be required to be made by the Company subsequent to the Closing,
and any registration statement which may be filed pursuant thereto, the Company is not required under federal, state or local law, rule or
regulation to obtain any consent, authorization or order of, or make any filing or registration with, any court or governmental agency
or self-regulatory entity in order for it to perform any of its obligations under this Agreement or issue the Units, Placement Shares,
Placement Warrants or the Warrant Shares in accordance with the terms hereof.
4.1
Legend. The Company will issue the Units, Placement Shares and Placement Warrants, and, when issued, the Warrant Shares, purchased
by Subscriber in the name of Subscriber. The Securities will bear the following Legend and appropriate “stop transfer” instructions:
“THE SECURITIES REPRESENTED
HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES
LAWS AND NEITHER THESE SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR SUCH LAWS OR AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES
ACT AND SUCH LAWS WHICH, IN THE OPINION OF COUNSEL FOR THIS CORPORATION, IS AVAILABLE.”
“THE SECURITIES REPRESENTED
BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON TRANSFER PURSUANT TO A LETTER AGREEMENT AMONG FTAC EMERALD ACQUISITION CORP. AND THE
OTHER PARTIES THERETO AND MAY ONLY BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF DURING THE TERM THEREOF PURSUANT
TO THE TERMS SET FORTH IN THE LETTER AGREEMENT.”
4.2
Subscriber’s Compliance. Nothing in this Section 4 shall affect in any way Subscriber’s obligations and agreements
to comply with all applicable securities laws upon resale of the Securities.
4.3
Company’s Refusal to Register Transfer of the Securities. The Company shall refuse to register any transfer of the Securities
if, in the sole judgment of the Company, such purported transfer would not be made (i) pursuant to an effective registration statement
filed under the Securities Act, or (ii) pursuant to an available exemption from the registration requirements of the Securities Act
and applicable state securities laws and (iii) in compliance herewith and with the Letter Agreement.
4.4
Registration Rights. Subscriber will be entitled to certain registration rights which will be governed by a registration rights
agreement (“Registration Rights Agreement”) to be entered into between, among others, Subscriber and the Company, on
or prior to the effective date of the Registration Statement.
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5.
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Waiver of Liquidation Distributions.
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In connection with the Securities
purchased pursuant to this Agreement, Subscriber hereby waives any and all redemption rights (i) in connection with the Company’s
consummation of the Business Combination, (ii) upon the Company’s failure to consummate the Business Combination within 18
months from the date of the completion of the IPO, or 21 months from the date of the completion of the IPO if the Company has executed
a letter of intent, agreement in principle or definitive agreement for its Business Combination within 18 months from the date of completion
of the IPO, but has not completed the Business Combination within such 18-month period, or the liquidation of the Company prior to the
expiration of such 18 to 21 month period, or (iii) if the Company seeks an amendment to its amended and restated certificate of incorporation
that would affect the substance or timing of the Company’s obligation to redeem 100% of the Public Shares (as defined below). In
the event Subscriber purchases shares of Common Stock in the IPO or in the aftermarket (“Public Shares”), Subscriber
hereby waives any and all right, title, interest or claim of any kind in or to any distributions with respect to any Public Shares in
connection with the exercise of redemption rights in connection with the Company’s consummation of the Business Combination. For
the avoidance of doubt, Subscriber shall be eligible to redeem any Public Shares upon the same terms offered to all other purchasers of
Common Stock in the IPO in the event the Company fails to consummate the Business Combination, or liquidates, within 18 months from the
date of the completion of the IPO, or 21 months from the date of the completion of the IPO if the Company has executed a letter of intent,
agreement in principle or definitive agreement for its Business Combination within 18 months from the date of completion of the IPO, but
has not completed the Business Combination within such 18-month period.
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6.
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Termination of Placement Warrants.
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6.1
Failure to Consummate Business Combination. The Placement Warrants shall be terminated upon the dissolution of the Company
or in the event that the Company does not consummate the Business Combination within 18 months from the date of the completion of the
IPO, or 21 months from the date of the completion of the IPO if the Company has executed a letter of intent, agreement in principle or
definitive agreement for its Business Combination within 18 months from the date of completion of the IPO, but has not completed the Business
Combination within such 18-month period.
6.2
Termination of Rights as Holder. If the Placement Warrants are terminated in accordance with Section 6.1, then after such
time, Subscriber (or successor in interest) shall no longer have any rights as holders of such Placement Warrants and the Company shall
take such action as is appropriate to cancel such Placement Warrants. Subscriber hereby irrevocably grants the Company a limited power
of attorney for the purpose of effectuating the foregoing and agrees to take any and all measures reasonably requested by the Company
necessary to effect the foregoing.
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7.
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Rescission Right Waiver and Indemnification.
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7.1
Subscriber understands and acknowledges an exemption from the registration requirements of the Securities Act requires there
be no general solicitation of purchasers of the Units. In this regard, if the IPO were deemed to be a general solicitation with respect
to the Units, the offer and sale of such Units may not be exempt from registration and, if not, Subscriber may have a right to rescind
their purchases of the Units. In order to facilitate the completion of the Offering and in order to protect the Company, its stockholders
and the amounts in the Trust Account from claims that may adversely affect the Company or the interests of its stockholders, Subscriber
hereby agrees to waive, to the maximum extent permitted by applicable law, any claims, right to sue or rights in law or arbitration, as
the case may be, to seek rescission of its purchase of the Units. Subscriber acknowledges and agrees this waiver is being made in order
to induce the Company to sell the Units to Subscriber. Subscriber agrees the foregoing waiver of rescission rights shall apply to any
and all known or unknown actions, causes of action, suits, claims or proceedings (collectively, “Claims”) and related
losses, costs, penalties, fees, liabilities and damages, whether compensatory, consequential or exemplary, and expenses in connection
therewith, including reasonable attorneys’ and expert witness fees and disbursements and all other expenses reasonably incurred
in investigating, preparing or defending against any Claims, whether pending or threatened, in connection with any present or future actual
or asserted right to rescind the purchase of the Units hereunder or relating to the purchase of the Units and the transactions contemplated
hereby.
7.2
Subscriber agrees not to seek recourse against the Trust Account for any reason whatsoever in connection with its purchase
of the Units or any Claim that may arise now or in the future.
7.3
Subscriber acknowledges and agrees that the stockholders of the Company are and shall be third-party beneficiaries of this
Section 7.
7.4
Subscriber agrees that, to the extent any waiver of rights under this Section 7 is ineffective as a matter of law, Subscriber
has offered such waiver for the benefit of the Company as an equitable right that shall survive any statutory disqualification or bar
that applies to a legal right. Subscriber acknowledges the receipt and sufficiency of consideration received from the Company hereunder
in this regard.
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8.
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Terms of the Units and Placement Warrant
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The Units and their component
parts are substantially identical to the units to be offered in the IPO except that: (i) the Units and their component parts will
be subject to transfer restrictions, except in limited circumstances, until 30 days following the consummation of the Business Combination,
(ii) the Placement Warrants will be non-redeemable so long as they are held by Subscriber (or any of its permitted transferees),
and will be exercisable on a “cashless” basis if held by Subscriber or its permitted transferees and (iii) the Units
and their component parts are being purchased pursuant to an exemption from the registration requirements of the Securities Act and will
become freely tradable only after they are registered or an exemption from registration is available, and the restrictions described above
in clause (i) have expired.
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9.
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Governing Law; Jurisdiction; Waiver of Jury Trial
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This Agreement shall be governed
by and construed in accordance with the laws of the State of New York for agreements made and to be wholly performed within such state.
The parties hereto hereby waive any right to a jury trial in connection with any litigation pursuant to this Agreement and the transactions
contemplated hereby.
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10.
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Assignment; Entire Agreement; Amendment
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10.1
Assignment. Neither this Agreement nor any rights hereunder may be assigned by any party to any other person other than by
Subscriber to a person agreeing to be bound by the terms hereof, including the waiver contained in Section 7 hereof.
10.2
Entire Agreement. This Agreement sets forth the entire agreement and understanding between the parties as to the subject matter
hereof and merges and supersedes all prior discussions, agreements and understandings of any and every nature among them.
10.3
Amendment. Except as expressly provided in this Agreement, neither this Agreement nor any term hereof may be amended, waived,
discharged or terminated other than by a written instrument signed by the party against whom enforcement of any such amendment, waiver,
discharge or termination is sought.
10.4
Binding upon Successors. This Agreement shall be binding upon and inure to the benefit of the parties hereto and to their respective
heirs, legal representatives, successors and permitted assigns.
11.1
Notices. Unless otherwise provided herein, any notice or other communication to a party hereunder shall be sufficiently given
if in writing and personally delivered or sent by facsimile or other electronic transmission with copy sent in another manner herein provided
or sent by courier (which for all purposes of this Agreement shall include Federal Express or other recognized overnight courier) or mailed
to said party by certified mail, return receipt requested, at its address provided for herein or such other address as either may designate
for itself in such notice to the other. Communications shall be deemed to have been received when delivered personally, on the scheduled
arrival date when sent by next day or 2nd-day courier service, or if sent by facsimile upon receipt of confirmation of transmittal or,
if sent by mail, then three days after deposit in the mail. If given by electronic transmission, such notice shall be deemed to be delivered
(a) if by electronic mail, when directed to an electronic mail address at which the recipient has consented to receive notice; (b) if
by a posting on an electronic network together with separate notice to the recipient of such specific posting, upon the later of (1) such
posting and (2) the giving of such separate notice; and (c) if by any other form of electronic transmission, when directed to
the recipient.
This Agreement may be executed
in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective
when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign
the same counterpart. In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a “pdf”
format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature
is executed) with the same force and effect as if such facsimile or “.pdf” signature page were an original thereof.
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13.
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Survival; Severability
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13.1
Survival. The representations, warranties, covenants and agreements of the parties hereto shall survive the Closing.
13.2
Severability. In the event that any provision of this Agreement becomes or is declared by a court of competent jurisdiction
to be illegal, unenforceable or void, this Agreement shall continue in full force and effect without said provision; provided that no
such severability shall be effective if it materially changes the economic benefit of this Agreement to any party.
The titles and subtitles used
in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.
[remainder of page intentionally left blank]
Accepted and agreed on the
date set forth above.
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FTAC EMERALD ACQUISITION CORP.
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By:
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Name:
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Bracebridge H. Young, Jr.
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Title:
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President and Chief Executive Officer
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Accepted and agreed on the
date set forth above.
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SUBSCRIBER:
EMERALD ESG SPONSOR, LLC
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By:
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Name:
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Betsy Cohen
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Title:
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Manager
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[Placement Unit Subscription Agreement –
Sponsor]
Exhibit 10.4
Emerald ESG Acquisition Corp.
2929 Arch Street, Suite 1703
Philadelphia, PA 19104
June 2, 2021
Emerald ESG Sponsor, LLC
2929 Arch Street, Suite 1703
Philadelphia, PA 19104
RE: Securities Subscription Agreement
Ladies and Gentlemen:
This agreement (the “Agreement”)
is entered into on June 2, 2021 by and between Emerald ESG Sponsor, LLC, a Delaware limited liability company (the “Subscriber”
or “you”), and Emerald ESG Acquisition Corp., a Delaware corporation (the “Company”, “we”
or “us”). Pursuant to the terms hereof, the Company hereby accepts the offer the Subscriber has made to purchase 7,992,750
shares (the “Shares”) of Class B common stock, $0.0001 par value per share (the “Class B Common Stock”)
up to 1,032,750 of which are subject to forfeiture by you if the underwriters of the initial public offering (“IPO”)
of units of the Company (the “Units”), do not fully exercise their over-allotment option (the “Over-allotment
Option”). The Company and the Subscriber’s agreements regarding such Shares are as follows:
1.
Purchase of Shares. For the sum of $25,000, which the Company acknowledges receiving in cash, the Company hereby issues the
Shares to the Subscriber, and the Subscriber hereby purchases the Shares from the Company, subject to forfeiture, on the terms and subject
to the conditions set forth in this Agreement. Concurrently with the Subscriber’s execution
of this Agreement, the Company shall, at its option, deliver to the Subscriber a certificate registered in the Subscriber’s name
representing the Shares (the “Original Certificate”), or effect such delivery in book-entry form.
2.
Representations, Warranties, and Agreements.
2.1
Subscriber’s Representations, Warranties and Agreements. To induce the Company to issue the Shares to the Subscriber,
the Subscriber hereby represents and warrants to the Company and agrees with the Company as follows:
2.1.1
No Government Recommendation or Approval. The Subscriber understands that no federal or state agency has passed upon or
made any recommendation or endorsement of the offering of the Shares.
2.1.2
No Conflicts. The execution, delivery and performance of this Agreement and the consummation by the Subscriber of the transactions
contemplated hereby do not violate, conflict with or constitute a default under (a) the formation and governing documents of the Subscriber,
(b) any agreement, indenture or instrument to which the Subscriber is a party, or (c) any law, statute, rule or regulation to which the
Subscriber is subject, or any agreement, order, judgment or decree to which the Subscriber is subject.
2.1.3
Organization and Authority. The Subscriber is a Delaware limited liability company, validly existing and in good standing
under the laws of Delaware and possesses all requisite power and authority necessary to carry out the transactions contemplated by this
Agreement. Upon execution and delivery by you, this Agreement is a legal, valid and binding agreement of Subscriber, enforceable against
Subscriber in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, fraudulent
conveyance or similar laws affecting the enforcement of creditors’ rights generally and subject to general principles of equity
(regardless of whether enforcement is sought in a proceeding at law or in equity).
2.1.4
Experience, Financial Capability and Suitability.
(a)
Subscriber is: (i) sophisticated in financial matters and is able to evaluate the risks and benefits of the investment in
the Shares and (ii) able to bear the economic risk of its investment in the Shares for an indefinite period of time because the Shares
have not been registered under the Securities Act of 1933, as amended (the “Securities Act”) and therefore cannot be
sold unless subsequently registered under the Securities Act or an exemption from such registration is available. Subscriber is capable
of evaluating the merits and risks of its investment in the Company and has the capacity to protect its own interests.
(b)
Subscriber must bear the economic risk of this investment until the Shares are sold pursuant to: (i) an effective registration
statement under the Securities Act or (ii) an exemption from registration available with respect to such sale. Subscriber is able to bear
the economic risks of an investment in the Shares and to afford a complete loss of Subscriber’s investment in the Shares.
2.1.5
Access to Information; Independent Investigation. Prior to the execution of this Agreement, the Subscriber has had the opportunity
to ask questions of and receive answers from representatives of the Company concerning an investment in the Company, as well as the finances,
operations, business and prospects of the Company, and the opportunity to obtain additional information to verify the accuracy of all
information so obtained. In determining whether to make this investment, Subscriber has relied solely on Subscriber’s own knowledge
and understanding of the Company and its business based upon Subscriber’s own due diligence investigation and the information furnished
pursuant to this paragraph. Subscriber understands that no person has been authorized to give any information or to make any representations
which were not furnished pursuant to this Section 2 and Subscriber has not relied on any other representations or information in
making its investment decision, whether written or oral, relating to the Company, its operations and/or its prospects.
2.1.6
Regulation D Offering. Subscriber represents that it is an “accredited investor” as such term is defined in
Rule 501(a) of Regulation D promulgated under the Securities Act and acknowledges the sale contemplated hereby is being made in reliance
on a private placement exemption to “accredited investors” within the meaning of Section 501(a) of Regulation D promulgated
under the Securities Act or similar exemptions under state law.
2.1.7
Investment Purposes. The Subscriber is purchasing the Shares solely for investment purposes, for the Subscriber’s
own account and not for the account or benefit of any other person, and not with a view towards the distribution or dissemination thereof.
The Subscriber did not decide to enter into this Agreement as a result of any general solicitation or general advertising within the meaning
of Rule 502(c) of Regulation D promulgated under the Securities Act.
2.1.8
Restrictions on Transfer; Shell Company. Subscriber understands the Shares are being offered in a transaction not involving
a public offering within the meaning of the Securities Act. Subscriber understands the Shares will be “restricted securities”
within the meaning of section (a)(3) of Rule 144 promulgated under the Securities Act (“Rule 144”), and Subscriber
understands that the Certificates (as defined in Section 3.3) or book-entries representing the Shares will contain a legend in
respect of such restrictions. If in the future the Subscriber decides to offer, resell, pledge or otherwise transfer the Shares, such
Shares may be offered, resold, pledged or otherwise transferred only pursuant to (a) registration under the Securities Act covering such
offer, resale, pledge or other transaction or (b) an available exemption from registration. Subscriber agrees that if any transfer of
its Shares or any interest therein is proposed to be made, as a condition precedent to any such transfer, Subscriber may be required to
deliver to the Company an opinion of counsel satisfactory to the Company. Absent registration or an exemption, the Subscriber agrees not
to resell the Shares. Subscriber further acknowledges that because the Company is a shell company, Subscriber may not be able to rely
on Rule 144 promulgated under the Securities Act with respect to the resale of the Shares until one year following consummation of the
initial business combination of the Company, despite technical compliance with the requirements of Rule 144 and the release or waiver
of any contractual transfer restrictions.
2.1.9
No Governmental Consents. No governmental, administrative or other third-party consents or approvals are required, necessary
or appropriate on the part of Subscriber in connection with the transactions contemplated by this Agreement.
2.2
Company’s Representations, Warranties and Agreements. To induce the Subscriber to purchase the Shares, the Company
hereby represents and warrants to the Subscriber and agrees with the Subscriber as follows:
2.2.1
Organization and Corporate Power. The Company is a Delaware corporation and is qualified to do business in every jurisdiction
in which the failure to so qualify would reasonably be expected to have a material adverse effect on the financial condition, operating
results or assets of the Company. The Company possesses all requisite corporate power and authority necessary to carry out the transactions
contemplated by this Agreement.
2.2.2
No Conflicts. The execution, delivery and performance of this Agreement and the consummation by the Company of the transactions
contemplated hereby do not violate, conflict with or constitute a default under (a) the certificate of incorporation or by-laws of the
Company, (b) any agreement, indenture or instrument to which the Company is a party, or (c) any law, statute, rule or regulation to which
the Company is subject, or any agreement, order, judgment or decree to which the Company is subject.
2.2.3
Title to Securities. Upon issuance in accordance with, and payment pursuant to, the terms hereof, the Shares will be duly
and validly issued, fully paid and nonassessable. Upon issuance in accordance with, and payment pursuant to, the terms hereof, the Subscriber
will have or receive good title to the Shares, free and clear of all liens, claims and encumbrances of any kind, other than (a) transfer
restrictions hereunder and other agreements to which the Shares may be subject which have been notified to the Subscriber in writing,
(b) transfer restrictions under federal and state securities laws, and (c) liens, claims or encumbrances imposed due to the actions of
the Subscriber.
2.2.4
No Adverse Actions. There are no actions, suits, investigations or proceedings pending, threatened against or affecting
the Company that: (a) seek to restrain, enjoin, prevent the consummation of or otherwise affect the transactions contemplated by this
Agreement or (b) question the validity or legality of any transactions or seeks to recover damages or to obtain other relief in connection
with any transactions.
3.
Forfeiture of Shares.
3.1
Partial or No Exercise of the Over-allotment Option. In the event the Over-allotment Option granted to the underwriters
of the IPO is not exercised in full, the Subscriber acknowledges and agrees that it (or, if applicable, it and any transferees of the
Shares (such transferees, the “Initial Stockholders”)) shall forfeit any and all rights to such number of Shares (up
to an aggregate of 1,032,750 Shares, pro rata based upon the percentage of the Over-allotment Option exercised) such that immediately
following such forfeiture, the Subscriber (and all other Initial Stockholders prior to the IPO, if any) will own an aggregate number of
Shares (not including any Shares issuable upon exercise of any warrants or any shares of Class A common stock, par value $0.0001 per share
(the “Class A Common Stock”, together with the Class B Common Stock, the “Common Stock”) purchased
by Subscriber or any other Initial Stockholder in the IPO or in the aftermarket) equal to 20% of the issued and outstanding Shares immediately
following the IPO.
3.2
Termination of Rights as Stockholder. If any of the Shares are forfeited in accordance with this Section 3, then
after such time the Subscriber (or Initial Stockholder or other successor in interest), shall no longer have any rights as a holder of
such forfeited Shares, and the Company shall take such action as is appropriate to cancel such forfeited Shares.
3.3
Share Certificates. In the event an adjustment to the original certificates representing
the Shares (the “Original Certificates”), if any, is required pursuant to this Section 3,
then the Subscriber shall return such Original Certificates to the Company or its designated agent as soon as practicable upon its receipt
of Notice (as defined in Section 6.2) from the Company advising Subscriber of such adjustment, following which a new certificate
representing the Shares (the “New Certificate” and together with the Original Certificates, the “Certificates”),
if any, shall be issued in such amount representing the adjusted number of Shares held by the Subscriber. The New Certificate, if any,
shall be returned to the Subscriber as soon as practicable. Any such adjustment for any uncertificated securities held by the Subscriber
shall be made in book-entry form.
4.
Waiver of Liquidation Distributions; Redemption Rights. In connection with the Shares purchased pursuant to this Agreement,
the Subscriber hereby waives any and all right, title, interest or claim of any kind in or to any distributions by the Company from the
trust account, which will be established for the benefit of the Company’s public stockholders and into which substantially all of
the proceeds of the IPO will be deposited (the “Trust Account”), in the event of a liquidation of the Company upon
the Company’s failure to timely complete an initial business combination. For purposes of clarity, in the event the Subscriber purchases
Units in the IPO or shares of Class A Common Stock in the aftermarket, any additional shares of Class A Common Stock included in the Units
or shares of Class A Common Stock so purchased shall be eligible to receive any liquidating distributions by the Company. However, in
no event will the Subscriber have the right to redeem any Shares into funds held in the Trust Account upon the successful completion of
an initial business combination.
5.
Restrictions on Transfer.
5.1
Securities Law Restrictions. In addition to any restrictions to be contained in that certain letter agreement (commonly
known as an “Insider Letter”) by and between Subscriber and the Company to be dated as of the closing of the IPO, Subscriber
agrees not to sell, transfer, pledge, hypothecate or otherwise dispose of all or any part of the Shares unless, prior thereto (a) a registration
statement on the appropriate form under the Securities Act and applicable state securities laws with respect to the offer and sale of
the Shares proposed to be transferred shall then be effective or (b) the Company has received an opinion from counsel reasonably satisfactory
to the Company, that such registration is not required because such transaction is exempt from registration (i) under the Securities Act
and the rules promulgated thereunder by the Securities and Exchange Commission and (ii) with respect to all applicable state securities
laws.
5.2
Lock-up. Subscriber acknowledges that the Shares will be subject to lock-up provisions
(the “Lock-up”) contained in the Insider Letter.
5.3
Restrictive Legends. Any Certificates shall have endorsed thereon legends substantially as follows:
“THE OFFER AND SALE OF THE SECURITIES REPRESENTED
HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS AND NEITHER THE SECURITIES
NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT COVERING SUCH OFFER, SALE, TRANSFER, PLEDGE OR OTHER DISPOSAL UNDER SUCH ACT OR SUCH LAWS OR AN EXEMPTION FROM REGISTRATION
UNDER SUCH ACT AND SUCH LAWS WHICH, IN THE OPINION OF COUNSEL, IS AVAILABLE.”
“THE SECURITIES REPRESENTED BY THIS CERTIFICATE
ARE SUBJECT TO A LOCKUP AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED DURING THE TERM OF THE LOCKUP.”
5.4
Additional Shares or Substituted Securities. In the event of the declaration of a share dividend, the declaration of an
extraordinary dividend payable in a form other than Common Stock, a spin-off, a share split, an adjustment in conversion ratio, a recapitalization
or a similar transaction affecting the Company’s outstanding shares of Common Stock without receipt of consideration, any new, substituted
or additional securities or other property, which are by reason of such transaction distributed with respect to any Shares subject to
this Section 5 or into which such Shares thereby become convertible shall immediately be subject to this Section 5 and Section
3. Appropriate adjustments to reflect the distribution of such securities or property shall be made to the number or class of Shares
subject to this Section 5 and Section 3.
5.5
Registration Rights. Subscriber acknowledges that the Shares are being purchased pursuant to an exemption from the registration
requirements of the Securities Act and will become freely-tradable only after certain conditions are met or the offer and sale of the
Shares is registered under the Securities Act pursuant to that certain registration rights agreement to be dated as of the closing of
the IPO by and between Subscriber, the Company, and the other parties thereto (the “Registration Rights Agreement”)
prior to the closing of the IPO.
6.1
Further Assurances. Subscriber agrees to execute such further instruments and to take such further action as may reasonably
be necessary to carry out the intent of this Agreement.
6.2
Notices. All notices, requests, consents, claims, demands, waivers, and other communications hereunder (each, a “Notice”)
shall be in writing and addressed to the parties at the addresses set forth on the first page of this Agreement (or to such other address
that may be designated by the receiving party from time to time in accordance with this Section 6.2). A Notice shall be deemed
to have been given (a) when delivered by hand (with written confirmation of receipt); (b) when received by the addressee if sent by a
nationally recognized overnight courier (receipt requested); (c) on the date sent by facsimile or email (with confirmation of transmission)
if sent during normal business hours of the recipient, and on the next business day if sent after normal business hours of the recipient;
or (d) on the third day after the date mailed, by certified or registered mail (in each case, return receipt requested, postage pre-paid).
6.3
Entire Agreement. This Agreement, together with the Insider Letter and the Registration Rights Agreement, each substantially
in the form to be filed as an exhibit to the Registration Statement on Form S-1 associated with the Company’s IPO, embodies the
entire agreement and understanding between the Subscriber and the Company with respect to the subject matter hereof and supersedes all
prior oral or written agreements and understandings relating to the subject matter hereof. No statement, representation, warranty, covenant
or agreement of any kind not expressly set forth in this Agreement shall affect, or be used to interpret, change or restrict, the express
terms and provisions of this Agreement.
6.4
Modifications and Amendments. The terms and provisions of this Agreement may be modified or amended only by written agreement
executed by all parties hereto.
6.5
Assignment. The rights and obligations under this Agreement may not be assigned by either party hereto without the prior
written consent of the other party.
6.6
Successors and Assigns; No Third-Party Beneficiaries. This Agreement shall be binding upon and shall inure to the benefit
of the parties hereto and their respective permitted successors and permitted assigns. This Agreement is for the sole benefit of the parties
hereto and their respective successors and permitted assigns and nothing herein, express or implied, is intended to or shall confer upon
any other person or entity any legal or equitable right, benefit, or remedy of any nature whatsoever under or by reason of this Agreement.
6.7
Governing Law. This Agreement and the rights and obligations of the parties hereunder shall be construed in accordance with
and governed by the laws of New York applicable to contracts wholly performed within the borders of such state, without giving effect
to the conflict of law principles thereof.
6.8
Severability. In the event that any court of competent jurisdiction shall determine that any provision, or any portion thereof,
contained in this Agreement shall be unreasonable or unenforceable in any respect, then such provision shall be deemed limited to the
extent that such court deems it reasonable and enforceable, and as so limited shall remain in full force and effect. In the event that
such court shall deem any such provision, or portion thereof, wholly unenforceable, the remaining provisions of this Agreement shall nevertheless
remain in full force and effect.
6.9
Waivers and Consents. No waiver by any party of any of the provisions hereof shall be effective unless explicitly set forth
in writing and signed by the party so waiving. No waiver by any party shall operate or be construed as a waiver in respect of any failure,
breach, or default not expressly identified by such written waiver, whether of a similar or different character, and whether occurring
before or after that waiver. No failure to exercise, or delay in exercising, any right, remedy, power, or privilege arising from this
Agreement shall operate or be construed as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power, or
privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power, or privilege. No
Notice on a party not expressly required under this Agreement shall entitle the party receiving such Notice to any other or further Notice
in similar or other circumstances or constitute a waiver of the rights of the party giving such Notice to any other or further action
in any circumstances without such Notice.
6.10
Survival of Representations and Warranties. All representations and warranties made by the parties hereto in this Agreement
or in any other agreement, certificate or instrument provided for or contemplated hereby, shall survive the execution and delivery hereof
and any investigations made by or on behalf of the parties.
6.11
No Broker or Finder. Each of the parties hereto represents and warrants to the other that no broker, finder or other financial
consultant has acted on its behalf in connection with this Agreement or the transactions contemplated hereby in such a way as to create
any liability on the other. Each of the parties hereto agrees to indemnify and save the other harmless from any claim or demand for commission
or other compensation by any broker, finder, financial consultant or similar agent claiming to have been employed by or on behalf of such
party and to bear the cost of legal expenses incurred in defending against any such claim.
6.12
Headings and Captions. The headings and captions of the various subdivisions of this Agreement are for convenience of reference
only and shall in no way modify or affect the meaning or construction of any of the terms or provisions hereof.
6.13
Counterparts. This Agreement may be executed in one or more counterparts, all of which when taken together shall be considered
one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party,
it being understood that both parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission
or any other form of electronic delivery, such signature shall create a valid and binding obligation of the party executing (or on whose
behalf such signature is executed) with the same force and effect as if such signature page were an original thereof.
6.14
Construction. The parties hereto have participated jointly in the negotiation and drafting of this Agreement. If an ambiguity
or question of intent or interpretation arises, this Agreement will be construed as if drafted jointly by the parties hereto and no presumption
or burden of proof will arise favoring or disfavoring any party hereto because of the authorship of any provision of this Agreement. The
words “include,” “includes,” and “including” will be deemed to be followed by
“without limitation.” Pronouns in masculine, feminine, and neuter genders will be construed to include any other gender,
and words in the singular form will be construed to include the plural and vice versa, unless the context otherwise requires. The words
“this Agreement,” “herein,” “hereof,” “hereby,” “hereunder,”
and words of similar import refer to this Agreement as a whole and not to any particular subdivision unless expressly so limited. The
parties hereto intend that each representation, warranty, and covenant contained herein will have independent significance. If any party
hereto has breached any representation, warranty, or covenant contained herein in any respect, the fact that there exists another representation,
warranty or covenant relating to the same subject matter (regardless of the relative levels of specificity) which such party hereto has
not breached will not detract from or mitigate the fact that such party hereto is in breach of the first representation, warranty, or
covenant.
6.15
Mutual Drafting. This Agreement is the joint product of the Subscriber and the Company and each provision hereof has been
subject to the mutual consultation, negotiation and agreement of such parties and shall not be construed for or against any party hereto.
7.
Voting and Tender of Shares. The Subscriber agrees to vote the Shares in favor of an initial business combination that the
Company negotiates and submits for approval to the Company’s stockholders and the Subscriber shall not seek redemption with respect
to such Shares. Additionally, the Subscriber agrees not to tender any Shares in connection with a tender offer presented to the Company’s
stockholders in connection with an initial business combination negotiated by the Company.
8.
Indemnification. Each party shall indemnify the other against any loss, cost or damages (including reasonable attorney’s
fees and expenses) incurred as a result of such party’s breach of any representation, warranty, covenant or agreement in this Agreement.
[Signature Page Follows]
If the foregoing accurately sets forth our understanding
and agreement, please sign the enclosed copy of this Agreement and return it to us.
Very truly yours,
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EMERALD ESG ACQUISITION CORP.
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By:
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/s/ Brace Young
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Name: Brace Young
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Title: Co-President and Co-CEO
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Accepted and agreed as of the date first written above.
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EMERALD ESG SPONSOR, LLC
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By:
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/s/ Betsy Cohen
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Name: Betsy Cohen
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Title: Sole Member
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[Signature Page to Subscription
Agreement]
Exhibit 10.5
, 2021
FTAC Emerald Acquisition Corp.
2929 Arch Street, Suite 1703
Philadelphia, PA 19104-2870
Re: Initial Public Offering
Ladies and Gentlemen:
This letter (“Letter
Agreement”) is being delivered to you in accordance with the Underwriting Agreement (the “Underwriting Agreement”)
entered into, or proposed to be entered into, by and among FTAC Emerald Acquisition Corp., a Delaware corporation (the “Company”),
and Goldman Sachs & Co. LLC (the “Underwriters”), relating to an underwritten initial public offering
(the “Offering”), of up to 25,300,000 of the Company’s units (the “Units”),
each comprised of one share of the Company’s Class A common stock, par value $0.0001 per share (the “Common Stock”),
and one half of one warrant, each whole warrant exercisable for one share of Common Stock (each, a “Warrant”).
The Units sold in the Offering will be registered under the Securities Act of 1933, as amended (the “Securities Act”),
pursuant to a registration statement on Form S-1 and prospectus (the “Prospectus”) filed by the Company
with the Securities and Exchange Commission (the “Commission”). The Company expects that the Units will be listed
for trading on the Nasdaq Global Market. Certain capitalized terms used herein are defined in paragraph 16 hereof.
The Insiders signatory hereto
hereby agree with the Company as follows:
1.
Each Insider agrees that, if the Company seeks stockholder approval of (a) a proposed initial Business Combination or
(b) a proposed amendment to the Company’s amended and restated certificate of incorporation (as may be amended from time to
time, the “Charter”) to modify the substance or timing of the Company’s obligation to redeem 100% of the
Offering Shares if the Company does not complete its initial Business Combination within 18 months from the date of the completion of
the Offering, or 21 months from the date of the completion of the Offering if the Company has executed a letter of intent, agreement in
principle or definitive agreement for its initial business combination within 18 months from the date of completion of the Offering, but
has not completed the business combination within such 18-month period (the “Completion Window”), then in connection
with such proposed initial Business Combination or amendment to the Charter, such person shall vote, as applicable, all Founder Shares,
Placement Shares and any shares acquired by such person in the Offering or in the secondary public market in favor of such proposed initial
Business Combination or such amendment to the Charter, as applicable.
2.
(a) Each Insider hereby agrees that, if the Company fails to consummate a Business Combination within the Completion Window,
such person shall take all reasonable steps to cause the Company to (i) cease all operations except for the purpose of winding up,
(ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem the Offering Shares at a per-share
price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including any amounts representing interest
earned on the Trust Account, less interest previously released to, or reserved for use by, the Company in an amount up to $100,000 to
pay dissolution expenses and less any other interest released to, or reserved for use by, the Company to pay franchise and income taxes,
divided by the number of Offering Shares then outstanding, which redemption will completely extinguish the holder’s rights as a
stockholder with respect to his, her or its Offering Shares (including the right to receive further liquidation distributions, if any),
subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the
Company’s remaining stockholders and the Company’s board of directors (the “Board”), dissolve and
liquidate, subject in the case of clauses (ii) and (iii) to the Company’s obligations under Delaware law to provide for
claims of creditors and other requirements of applicable law.
(b) Each Insider agrees
to not propose any amendment to the Charter that would affect the substance or timing of the Company’s obligation to redeem 100%
of the Offering Shares if the Company does not consummate a Business Combination within the Completion Window, unless the Company provides
the holders of Offering Shares with the opportunity to redeem their Offering Shares upon approval of any such amendment at a per-share
price, payable in cash, equal to the aggregate amount then on deposit in the trust account, including any amounts representing interest
earned on the Trust Account, less any interest released to, or reserved for use by, the Company to pay franchise and income taxes, divided
by the number of then outstanding Offering Shares.
(c) Each Insider acknowledges
and agrees that Founder Shares or Placement Shares held by him, her or it are not entitled to, and have no right, interest or claim of
any kind in or to, any monies held in the Trust Account or distributed as a result of any liquidation of the Trust Account.
(d) Each Insider waives,
with respect to any Founder Shares or Placement Shares held by such undersigned party, any redemption rights he, she or it may have (i) in
connection with the consummation of an initial Business Combination, (ii) if the Company fails to consummate its initial Business
Combination or liquidates within the Completion Window or (iii) if the Company seeks an amendment to its Charter that would affect
the substance or timing of the Company’s obligation to redeem 100% of the Offering Shares as described above. If any of the Insiders
should acquire Offering Shares in or after the Offering, each Insider hereby waives with respect to such Offering Shares held by such
undersigned party any redemption rights such party may have in connection with the consummation of a Business Combination or a stockholder
vote to amend the Charter to modify the substance or timing of the Company’s obligation to redeem 100% of the Offering Shares if
the Company does not complete its initial Business Combination within the Completion Window; provided, however, that the
Insiders will be entitled to redemption rights with respect to such Offering Shares held by them if the Company fails to consummate a
Business Combination or liquidates within the Completion Window.
3.
(a) To the extent that the Underwriters do not exercise in full their over-allotment option to purchase an additional
3,300,000 Units (as described in the Prospectus), the Initial Holders shall return to the Company for cancellation, at no cost, an aggregate number
of Founder Shares determined by multiplying 1,133,333 by a fraction: (i) the numerator of which is 3,300,000 minus the number of
shares of the Common Stock purchased by the Underwriters upon the exercise of their over-allotment option, and (ii) the denominator
of which is 3,300,000. The Initial Holders further agree that, if the Company effects a stock split, stock dividend, reverse stock split,
contribution back to capital or otherwise in connection with any increase or decrease in the size of the Offering, to the extent that
the Underwriters do not exercise their over-allotment option in full, the aggregate number of shares that the Initial Holders will be
required to return to the Company as set forth in the immediately preceding sentence shall be adjusted so that the Founder Shares held
by the Initial Holders and their Permitted Transferees represent 25% of the Company’s issued and outstanding shares of Common Stock
immediately following such forfeiture. The number of Founder Shares to be returned by each Initial Holder, if any, pursuant to this Section 3(a) shall
be determined on a pro-rata basis based on the percentage of outstanding Founder Shares held by each Initial Holder at the time of such
forfeiture.
(b) Subject
to paragraph 3(d), the Founder Shares owned by the Insiders shall not be transferable or salable (x)(a) with respect to 25%
of such shares, until consummation of the initial Business Combination, (b) with respect to 25% of such shares, until the closing
price of the Common Stock exceeds $12.00 per share for any 20 trading days within a 30-trading day period following the consummation of
the initial Business Combination, (c) with respect to 25% of such shares, until the closing price of the Common Stock exceeds $13.50
per share for any 20 trading days within a 30-trading day period following the consummation of the initial Business Combination, and (d) with
respect to 25% of such shares, until the closing price of the Common Stock exceeds $15.00 per share for any 20 trading days within a 30-trading
day period following the consummation of the initial Business Combination or earlier, in any case, if, following a Business Combination
(y) the Company completes a liquidation, merger, stock exchange or other similar transaction that results in all of the Company’s
stockholders having the right to exchange their shares of Common Stock for cash, securities or other property (such applicable period
being the “Founder Lock-Up Period”). During the Founder Lock-Up Period, the Insiders shall not, except as described
in the Prospectus, (I) sell, offer to sell, contract or agree to sell, hypothecate, pledge, grant any option to purchase or otherwise
dispose of or agree to dispose of, directly or indirectly, or establish or increase a put equivalent position or liquidate or decrease
a call equivalent position within the meaning of Section 16 of the Securities Exchange Act of 1934, as amended, and the rules and
regulations of the Commission promulgated thereunder (the “Exchange Act”), with respect to the Founder Shares
then subject to the Founder Lock-Up Period, (II) enter into any swap or other arrangement that transfers to another, in whole or
in part, any of the economic consequences of ownership of any of the Founder Shares then subject to the Founder Lock-Up Period, whether
any such transaction is to be settled by delivery of the Common Stock or such other securities, in cash or otherwise, or (III) publicly
announce any intention to effect any transaction specified in clause (b)(I) or (b)(II).
(c) Until 30 days after
the consummation of the initial Business Combination (“Placement Unit Lock-Up Period”), the Sponsor shall
not, except as described in the Prospectus, (i) sell, offer to sell, contract or agree to sell, hypothecate, pledge, grant any option
to purchase or otherwise dispose of or agree to dispose of, directly or indirectly, or establish or increase a put equivalent position
or liquidate or decrease a call equivalent position within the meaning of Section 16 of the Exchange Act with respect to the Placement
Units, Placement Shares, Placement Warrants, or shares of Common Stock underlying the Placement Warrants, (ii) enter into any swap
or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of any of the Placement
Units, Placement Shares, Placement Warrants, or shares of Common Stock underlying the Placement Warrants, whether any such transaction
is to be settled by delivery of the Common Stock or such other securities, in cash or otherwise, or (iii) publicly announce any intention
to effect any transaction specified in clause (c)(i) or (c)(ii).
(d) Notwithstanding the
provisions contained in paragraphs 3(b) and 3(c) hereof, any Insider may transfer, as applicable, the Founder Shares and/or
Placement Units, Placement Shares, Placement Warrants, or shares of Common Stock underlying the Placement Warrants (1) in connection
with an initial Business Combination with the consent of the Company to any third party that agrees in writing to be bound by the provisions
of this agreement applicable to Insiders (other than paragraph 1 and the second sentence of paragraph 2(d)); and (2) (a) to
the Company’s officers, the Company’s directors, the Initial Holders, or other Insiders, (b) to an affiliate or immediate
family member of any of the Company’s officers and directors, Initial Holders, or other Insiders, (c) to any member, officer
or director of the Sponsor, or any immediate family member, partner, affiliate or employee of a member of the Sponsor, (d) by gift
to any Permitted Transferee under any of the immediately preceding subsections (a) through (c), a trust, the beneficiaries of which
are one or more Permitted Transferees under any of the immediately preceding subsections (a) through (c), or a charitable organization,
(e) by virtue of laws of descent and distribution upon death of any of the Company’s officers, the Company’s directors,
the Initial Holders, or members of the Sponsor, (f) pursuant to a qualified domestic relations order, (g) in the event of the
Company’s liquidation prior to consummation of its initial Business Combination, (h) by virtue of the laws of Delaware, the
Sponsor’s limited liability company agreement upon dissolution of the Sponsor, (i) subsequent to the Company’s consummation
of its initial Business Combination, in the event of a liquidation, merger, stock exchange or other similar transaction which results
in all of the Company’s stockholders having the right to exchange their shares of Common Stock for cash, securities or other property,
(j) subsequent to the Company’s consummation of its initial Business Combination, in the event of a consolidation, merger or
other similar transaction in which the Company is the surviving entity that results in the directors and officers of the Company ceasing
to comprise a majority of the Board (in the case of directors) or management (in the case of officers) of the surviving entity or (k) through
private sales or transfers made in connection with any forward purchase agreement or similar arrangement or in connection with the consummation
of the Company’s initial Business Combination at prices no greater than the price at which the Founder Shares, Placement Shares
or Placement Warrants were originally purchased (each, a “Permitted Transferee”); provided, however,
that, in the case of subclauses (a) through (f), (h) and (k), these transferees enter into a written agreement with the Company
agreeing to be bound by the transfer restrictions set forth herein. For the avoidance of doubt, for the purposes of this Agreement, a
managed account managed by the same investment manager of any member of the Sponsor shall be deemed an affiliate of such member.
(e) Further, each Insider
agrees that after the Founder Lock-Up Period or the Placement Unit Lock-Up Period, as applicable, has elapsed, the Founder Shares and/or
Placement Units, Placement Shares, Placement Warrants, or shares of Common Stock underlying the Placement Warrants owned by such Insider
shall only be transferable or saleable pursuant to a sale registered under the Securities Act or pursuant to an available exemption from
registration under the Securities Act. The Company and each Insider acknowledges that pursuant to that certain registration rights agreement
to be entered into among the Company and certain security holders of the Company, parties to the agreement may request that a registration
statement relating to the Founder Shares and/or Placement Units, Placement Shares, Placement Warrants, or shares of Common Stock underlying
the Placement Warrants be filed by the Company with the Commission prior to the end of the Founder Lock-Up Period or the Placement Unit
Lock-Up Period, as the case may be; provided, however, that such registration statement does not become effective prior
to the end of the Founder Lock-Up Period or the Placement Unit Lock-Up Period, as applicable.
(f) Subject to the limitations
described herein, each Insider shall retain all of such Insider’s rights as a security holder during, as applicable, the Founder
Lock-Up Period and/or Placement Unit Lock-Up Period including, without limitation, the right to vote, as the case may be, the Founder
Shares and/or Placement Shares.
(g) During the Founder
Lock-Up Period and Placement Unit Lock-Up Period, all dividends payable in cash with respect to such securities shall be paid, as applicable,
to each security holder, but all dividends payable in Common Stock or other non-cash property shall become subject to the applicable lock-up
period as described herein and shall only be released from such lock-up in accordance with the provisions of this paragraph 3.
4.
Without limiting the provisions of paragraph 3(d) hereof, during the period commencing on the effective date of the Underwriting
Agreement and ending 180 days after such date, each of the undersigned shall not (i) sell, offer to sell, contract or agree to sell,
hypothecate, pledge, grant any option to purchase or otherwise dispose of or agree to dispose of, directly or indirectly, or establish
or increase a put equivalent position or liquidate or decrease a call equivalent position within the meaning of Section 16 of the
Exchange Act with respect to any Units, Placement Units, shares of Common Stock, Warrants, Placement Shares, Placement Warrants or any
securities convertible into, or exercisable, or exchangeable for, shares of Common Stock owned by an undersigned party, (ii) enter
into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of any
Units, Placement Units, shares of Common Stock, Warrants, Placement Shares, Placement Warrants or any securities convertible into, or
exercisable, or exchangeable for, shares of Common Stock owned by the undersigned, whether any such transaction is to be settled by delivery
of such securities, in cash or otherwise, or (iii) publicly announce any intention to effect any transaction specified in clause
(i) or (ii); provided, however, that the restrictions of this Section 4 shall not apply to any distributions by
the Sponsor to its members of Units, Placement Units, shares of Common Stock, Warrants, Placement Shares, Placement Warrants or any securities
convertible into, or exercisable, or exchangeable for, shares of Common Stock.
5.
(a) In the event of the liquidation of the Trust Account without the consummation of a Business Combination, the Sponsor
(the “Indemnitor”) agrees to indemnify and hold harmless the Company against any and all loss, liability, claim,
damage and expense whatsoever (including, but not limited to, any and all legal or other expenses reasonably incurred in investigating,
preparing or defending against any litigation, whether pending or threatened, or any claim whatsoever) to which the Company may become
subject as a result of any claim by (i) any third party for services rendered or products sold to the Company or (ii) any prospective
target business (a “Target”) as described in the Prospectus; provided, however, that such indemnification
of the Company by the Indemnitor shall apply only to the extent necessary to ensure that such claims by a third party for services rendered
or products sold to the Company or a Target do not reduce the amount of funds in the Trust Account to below $10.10 (regardless of whether
or not the Underwriters exercise any portion of their overallotment option) per Offering Share and only if such third party or Target
has not executed an agreement waiving claims against any and all rights to seek access to the Trust Account, regardless of whether such
agreement is enforceable. In the event that any such executed waiver is deemed to be unenforceable against such third party, the Indemnitor
shall not be responsible for any liability as a result of any such third party claims. Notwithstanding any of the foregoing, indemnification
of the Company by the Indemnitor pursuant to this paragraph 5 shall not apply as to any claims arising from the Company’s obligation
pursuant to the Underwriting Agreement to indemnify the Underwriters.
(b) If the Company is
liquidated within the Completion Window, to the extent that interest income on the balance of the Trust Account (net of any taxes payable)
released to the Company in an amount up to $100,000 to pay dissolution expenses and any other interest released to, or reserved for use
by, the Company to pay franchise and income taxes and loans from the Sponsor (each as described in the Prospectus) are insufficient to
fund the costs and expenses of liquidation, the Indemnitor agrees to pay the balance of the amount necessary to complete the liquidation
of the Company.
6.
The Company agrees that the Company will not engage any third party to render services, agree to purchase any products from
such third party, or enter into any discussion or any acquisition agreement with a Target unless (i) such third party or Target has
agreed to execute a waiver against any right, title, interest or claim of any kind in or to any monies held in the Trust Account or any
proceeds from the Trust Account, that is acceptable to the Board or (ii) the Board and the Sponsor have each consented in writing
to dispense with such waiver with respect to such services, product, discussions or acquisition agreement, in each case with the written
consent of the Indemnitor as part of the consent of the Board. In addition the Company shall endeavor, together with the officers and
directors of any acquisition target for its initial Business Combination, to obtain waivers of claims to the monies held in the Trust
Account from creditors of such acquisition target (which, for the avoidance of doubt, shall include creditors existing prior to the initial
Business Combination as well as after completion of the initial Business Combination).
7.
In order to minimize potential conflicts of interest that may arise from multiple corporate affiliations, each officer and
director of the Company who is signatory to this Agreement agrees that until the earliest of the Company’s initial Business Combination,
liquidation or the time at which such person ceases to be an officer or director of the Company, such person shall present to the Company
for its consideration, prior to presentation to any other entity, any suitable Business Combination opportunities of which such person
(or companies or entities which such person manages or controls) becomes aware, subject to any current or future fiduciary or contractual
obligations of such person that such person discloses to the Company.
8.
Each officer and director signatory hereto represents and warrants that the biographical information furnished to the Company
by him or her is true and accurate in all material respects and does not omit any material information with respect to such person’s
background. Each of the answers of such person to the items in questionnaires furnished to the Company by such officer and director is
true and accurate in all material respects.
9.
Each of the undersigned represents and warrants that her, she or it:
(a) is not subject to
or a respondent in any legal action for any injunction, cease-and-desist order or order or stipulation to desist or refrain from any act
or practice relating to the offering of securities in any jurisdiction;
(b) has never been convicted
of, or pleaded guilty to, any crime (i) involving fraud, (ii) relating to any financial transaction or handling of funds of
another person, or (iii) pertaining to any dealings in any securities, and the undersigned is not currently a defendant in any such
criminal proceeding; and
(c) has never been suspended
or expelled from membership in any securities or commodities exchange or association or had a securities or commodities license or registration
denied, suspended or revoked.
10.
Each Insider agrees that he, she or it shall receive no finder’s fees, consulting fees or other similar compensation
from the Company prior to, or for any services they render in order to effectuate, the consummation of the initial Business Combination,
other than the following:
(a) repayment of loans
made to the Company by the Sponsor or its affiliate prior to completion of the Offering in connection with organizational expenses and
the preparation, filing and consummation of the Offering;
(b) payments to the Sponsor
or its affiliate of a total of $30,000 per month for office space, administrative and shared personnel support services, pursuant to an
Administrative Services Agreement;
(c) repayment of loans,
if any, and on such terms as to be determined by the Company from time to time, made by the Sponsor or one of its affiliates to finance
transaction costs in connection with an intended initial Business Combination, provided, that, if the Company does not consummate
an initial Business Combination, a portion of the working capital held outside the Trust Account may be used by the Company to repay such
loaned amounts. Up to $2,000,000 of such loans may be convertible into units at a price of $10.00 per unit at the option of the lender.
Such units would be identical to the Placement Units;
(d) payment of certain
consulting fees to persons engaged by an entity affiliated with certain Insiders;
(e) at the closing of
an initial Business Combination, a customary advisory fee to affiliates of the Sponsor, in an amount that constitutes a market standard
advisory fee for comparable transactions and services provided; and
(f) reimbursement for
any out-of-pocket expenses related to identifying, investigating and consummating an initial Business Combination, provided that
no proceeds of the Offering placed in the Trust Account may be applied to the payment of such expenses prior to the consummation of an
initial Business Combination.
11.
Each of the undersigned acknowledges and understands that the Underwriters and the Company will rely upon the agreements, representations,
and warranties set forth herein in proceeding with the Offering.
12.
Each of the undersigned authorizes any employer, financial institution, or consumer credit reporting agency to release to the
Underwriters and their legal representatives or agents (including any investigative search firm retained by the Underwriters) any information
they may have about such undersigned party’s background and finances (“Information”), purely for the purposes
of performing required due diligence examinations in connection with the Offering (provided that the Underwriters agree to hold such Information
in confidence). Each of the undersigned agrees that neither the Underwriters nor their agents shall be violating such undersigned party’s
right of privacy by requesting and obtaining the Information in accordance with this Section 12.
13.
Each of the undersigned acknowledges and agrees that the Company will not consummate any initial Business Combination that
involves a company which is affiliated with such undersigned party unless the Company obtains an opinion from an independent investment
banking firm that is a member of the Financial Industry Regulatory Authority that the Business Combination is fair to the Company’s
stockholders from a financial perspective.
14.
Each officer and director signatory hereto represents and warrants that he or she has full right and power, without violating
any agreement to which such person is bound (including, without limitation, any non-competition or non-solicitation agreement with any
employer or former employer), to enter into this Letter Agreement and to serve as an officer of the Company or as a director on the Board,
as applicable, and hereby consents to being named in the Prospectus as an officer and/or as a director of the Company, as applicable.
15.
As used in this Letter Agreement, (i) “Business Combination” shall mean a merger, capital stock
exchange, asset acquisition, stock purchase, reorganization or similar Business Combination, involving the Company and one or more businesses;
(ii) “Founder Shares” shall mean the 8,763,333 shares of Class B common stock of the Company, par
value $0.0001 per share, acquired by the Sponsor and the other Initial Holders for an aggregate purchase price of $25,000 prior to the
consummation of the Offering; (iii) “Initial Holders” shall mean Emerald ESG Sponsor, LLC [and Emerald
ESG Advisors, LLC]; (iii) “Offering Shares” shall mean the shares of Common Stock included in the units
sold in the Offering; (iv) “Placement Shares” shall mean the shares of Common Stock sold as part of the
Placement Units; (v) “Placement Warrants” shall mean the Warrants to purchase up to an aggregate of 495,000
shares of the Common Stock that are included in the Placement Units; (vi) “Placement Units” shall mean
the aggregate of up to 990,000 Units of the Company (each Placement Unit consists of one-half of a Placement Warrant and one Placement
Share) sold in the Private Placement for an aggregate purchase price of up to $9,900,000; (vii) “Trust Account”
shall mean the trust account into which net proceeds of the Offering and the Private Placement will be deposited; (viii) “Prospectus”
shall mean the prospectus included in the registration statement filed by the Company in connection with the Offering, as supplemented
or amended from time to time; (ix) “Private Placement” shall mean that certain private placement transaction
occurring simultaneously with the closing of the Offering pursuant to which the Company has agreed to sell an aggregate of up to 990,000
Placement Units to Emerald ESG Sponsor, LLC, a Delaware limited liability company; (x) “Sponsor” shall
mean, collectively, Emerald ESG Sponsor, LLC, a Delaware limited liability company[, and Emerald ESG Advisors, LLC, a Delaware limited
liability company], (xi) “Insiders” shall mean the Sponsor, any holders of Founder Shares, any person who
receives Placement Units, Founder Shares or their respective underlying securities as a Permitted Transferee and each officer and director
of the Company; and (y) references to completion of the Offering shall exclude any exercise of the Underwriters’ over-allotment
option.
16.
This Letter Agreement constitutes the entire agreement and understanding of the parties hereto in respect of the subject matter
hereof and supersedes all prior understandings, agreements, or representations by or among the parties hereto, written or oral, to the
extent they relate in any way to the subject matter hereof or the transactions contemplated hereby. This Letter Agreement may not be changed,
amended, modified or waived (other than to correct a typographical error) as to any particular provision, except by a written instrument
executed by the parties hereto.
17.
No party may assign either this Letter Agreement or any of its rights, interests, or obligations hereunder without the prior
written consent of the other party. Any purported assignment in violation of this paragraph shall be void and ineffectual and shall not
operate to transfer or assign any interest or title to the purported assignee. This Letter Agreement shall be binding on each undersigned
party and each of such undersigned party’s, as applicable, heirs, personal representatives, successors and assigns.
18.
This Letter Agreement shall be governed by and construed and enforced in accordance with the laws of the State of New York
applicable to contracts entered into within the borders of such state and without giving effect to conflicts of law principles that would
result in the application of the substantive laws of another jurisdiction. The parties (i) agree that any action, proceeding, claim
or dispute arising out of, or relating in any way to, this Letter Agreement shall be brought and enforced in the federal or state courts
in the borough of Manhattan in the City of New York, and irrevocably submits to such jurisdiction and venue, which jurisdiction and venue
shall be exclusive and (ii) waive any objection to such exclusive jurisdiction and venue or that such courts represent an inconvenient
forum.
19.
Any notice, consent or request to be given in connection with any of the terms or provisions of this Letter Agreement shall
be in writing and shall be sent by express mail or similar private courier service, by certified mail (return receipt requested), by hand
delivery, electronic or facsimile transmission.
20.
This Letter Agreement shall terminate in the event that the Offering is not completed by January 31, 2022; and, provided, further,
that paragraph 5 of this Letter Agreement shall survive any liquidation of the Company.
[Signature page follows]
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Sincerely,
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FTAC EMERALD ACQUISITION CORP.
a Delaware corporation
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By:
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Name:
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Bracebridge H. Young, Jr.
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Title:
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President and Chief Executive Officer
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EMERALD ESG SPONSOR, LLC,
a Delaware limited liability company
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By:
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Name:
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Betsy Cohen
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Title:
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Manager
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[EMERALD ESG ADVISORS, LLC,
a Delaware limited liability company]
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By:
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Name:
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Betsy Cohen
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Title:
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Manager
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[Signature Page to Letter Agreement]
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Betsy Cohen, individually
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Bracebridge H. Young, Jr., individually
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Doug Listman, individually
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Mark Tercek, individually
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Tensie Whelan, individually
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Andrew Hohns, individually
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Therese Rein, individually
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Lisa Shalett, individually
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[Signature Page to Letter Agreement]
Exhibit 10.6
INDEMNITY AGREEMENT
THIS
INDEMNITY AGREEMENT (this “Agreement”) is made as of [_____________], 2021, by and between FTAC EMERALD
ACQUISITION CORP., a Delaware corporation (the “Company”), and the person executing this Agreement identified
on the signature page hereto (“Indemnitee”).
RECITALS
WHEREAS,
highly competent persons have become more reluctant to serve publicly-held corporations as directors, officers or in other capacities
unless they are provided with adequate protection through insurance or adequate indemnification against inordinate risks of claims and
actions against them arising out of their service to and activities on behalf of such corporations;
WHEREAS,
the Board of Directors of the Company (the “Board”) has determined that, in order to attract and retain qualified
individuals, the Company will attempt to maintain on an ongoing basis, at its sole expense, liability insurance to protect persons serving
the Company and its subsidiaries from certain liabilities;
WHEREAS,
the Company believes that, given current market conditions and trends, such liability insurance may be available to it in the future only
at high premiums and with more exclusions;
WHEREAS,
directors, officers and other persons in service to corporations or business enterprises are being increasingly subjected to expensive
and time-consuming litigation relating to, among other things, matters that traditionally would have been brought only against the Company
or business enterprise itself;
WHEREAS,
the Amended and Restated Certificate of Incorporation (the “Charter”) and Amended and Restated Bylaws (the “Bylaws”)
of the Company require indemnification of the officers and directors of the Company. Indemnitee may also be entitled to indemnification
pursuant to applicable provisions of the Delaware General Corporation Law (“DGCL”). The Charter, Bylaws and
the DGCL expressly provide that the indemnification provisions set forth therein are not exclusive, and thereby contemplate that contracts
may be entered into between the Company and members of the board of directors, officers and other persons with respect to indemnification,
hold harmless, exoneration, advancement and reimbursement rights;
WHEREAS,
the uncertainties relating to such insurance and to indemnification have increased the difficulty of attracting and retaining such persons;
WHEREAS,
the Board has determined that the increased difficulty in attracting and retaining such persons is detrimental to the best interests of
the Company’s stockholders and that the Company should act to assure such persons that there will be increased certainty of such
protection in the future;
WHEREAS,
it is reasonable, prudent and necessary for the Company contractually to obligate itself to indemnify, hold harmless, exonerate and to
advance expenses on behalf of, such persons to the fullest extent permitted by applicable law so that they will serve or continue to serve
the Company free from undue concern that they will not be so protected against liabilities;
WHEREAS,
this Agreement is a supplement to and in furtherance of the Charter and Bylaws of the Company and any resolutions adopted pursuant thereto,
and shall not be deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder; and
WHEREAS, Indemnitee
is willing to serve, continue to serve and to take on additional service for or on behalf of the Company on the condition that the Company
contractually provide the indemnification set forth in this Agreement.
NOW,
THEREFORE, in consideration of the premises and the covenants contained herein and subject to the provisions of the letter
agreement dated as of [_____________], 2021 among the Company, Indemnitee and the other parties thereto, the Company and Indemnitee
do hereby covenant and agree as follows:
TERMS AND CONDITIONS
1.
SERVICES TO THE COMPANY. Indemnitee will serve or continue to serve as an officer, director, advisor, key employee or in any
other capacity of the Company, as applicable, for so long as Indemnitee is duly elected, appointed or retained or until Indemnitee tenders
his resignation.
2.
DEFINITIONS. As used in this Agreement:
2.1. References to “agent”
shall mean any person who is or was a director, officer or employee of the Company or a subsidiary of the Company or other person authorized
by the Company to act for the Company, to include such person serving in such capacity as a director, officer, employee, advisor, fiduciary
or other official of another corporation, partnership, limited liability company, joint venture, trust or other enterprise at the request
of, for the convenience of, or to represent the interests of the Company or a subsidiary of the Company.
2.2. The terms “Beneficial
Owner” and “Beneficial Ownership” shall have the meanings set forth in Rule 13d-3 promulgated
under the Exchange Act (as defined below) as in effect on the date hereof.
2.3. A “Change
in Control” shall be deemed to occur upon the earliest to occur after the date of this Agreement of any of the following
events:
2.3.1. Acquisition of Stock
by Third Party. Any Person (as defined below) is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company
representing fifteen percent (15%) or more of the Company’s then outstanding securities entitled to vote generally in the election
of directors, unless (1) the change in the relative Beneficial Ownership of the Company’s securities by any Person results
solely from a reduction in the aggregate number of outstanding shares of securities entitled to vote generally in the election of directors,
or (2) such acquisition was approved in advance by the Continuing Directors (as defined below) and such acquisition would not constitute
a Change in Control under part 2.3.3 of this definition;
2.3.2. Change in Board of
Directors. Individuals who, as of the date hereof, constitute the Board, and any new director whose election by the Board or nomination
for election by the Company’s stockholders was approved by a vote of at least two thirds of the directors then still in office who
were directors on the date hereof or whose election for nomination for election was previously so approved (collectively, the “Continuing
Directors”), cease for any reason to constitute at least a majority of the members of the Board;
2.3.3. Corporate Transactions.
The effective date of a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination,
involving the Company and one or more businesses (a “Business Combination”), in each case, unless, following
such Business Combination: (1) all or substantially all of the individuals and entities who were the Beneficial Owners of securities
entitled to vote generally in the election of directors immediately prior to such Business Combination beneficially own, directly or indirectly,
51% or more of the then outstanding securities of the Company entitled to vote generally in the election of directors resulting from such
Business Combination (including, without limitation, a corporation which as a result of such transaction owns the Company or all or substantially
all of the Company’s assets either directly or through one or more Subsidiaries) in substantially the same proportions as their
ownership immediately prior to such Business Combination, of the securities entitled to vote generally in the election of directors; (2) no
Person (excluding any corporation resulting from such Business Combination) is the Beneficial Owner, directly or indirectly, of 15% or
more of the then outstanding securities entitled to vote generally in the election of directors of the surviving corporation except to
the extent that such ownership existed prior to the Business Combination; and (3) at least a majority of the Board of Directors of
the corporation resulting from such Business Combination were Continuing Directors at the time of the execution of the initial agreement,
or of the action of the Board of Directors, providing for such Business Combination;
2.3.4. Liquidation. The
approval by the stockholders of the Company of a complete liquidation of the Company or an agreement or series of agreements for the sale
or disposition by the Company of all or substantially all of the Company’s assets, other than factoring the Company’s current
receivables or escrows due (or, if such approval is not required, the decision by the Board to proceed with such a liquidation, sale,
or disposition in one transaction or a series of related transactions); or
2.3.5. Other Events.
There occurs any other event of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation
14A (or a response to any similar item on any similar schedule or form) promulgated under the Exchange Act (as defined below), whether
or not the Company is then subject to such reporting requirement.
2.4. “Corporate
Status” describes the status of a person who is or was a director, officer, trustee, general partner, managing member, fiduciary,
employee or agent of the Company or of any other Enterprise (as defined below) which such person is or was serving at the request of the
Company.
2.5. “Delaware
Court” shall mean the Court of Chancery of the State of Delaware.
2.6. “Disinterested
Director” shall mean a director of the Company who is not and was not a party to the Proceeding (as defined below) in respect
of which indemnification is sought by Indemnitee.
2.7. “Enterprise”
shall mean the Company and any other corporation, constituent corporation (including any constituent of a constituent) absorbed in a consolidation
or merger to which the Company (or any of its wholly owned subsidiaries) is a party, limited liability company, partnership, joint venture,
trust, employee benefit plan or other enterprise of which Indemnitee is or was serving at the request of the Company as a director, officer,
trustee, general partner, managing member, fiduciary, employee or agent.
2.8. “Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended.
2.9. “Expenses”
shall include all direct and indirect costs, fees and expenses of any type or nature whatsoever, including, without limitation, all attorneys’
fees and costs, retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses, fees of private investigators
and professional advisors, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, fax transmission
charges, secretarial services and all other disbursements, obligations or expenses in connection with prosecuting, defending, preparing
to prosecute or defend, investigating, being or preparing to be a witness in, settlement or appeal of, or otherwise participating in,
a Proceeding (as defined below), including reasonable compensation for time spent by the Indemnitee for which he or she is not otherwise
compensated by the Company or any third party. Expenses also shall include Expenses incurred in connection with any appeal resulting from
any Proceeding (as defined below), including without limitation the principal, premium, security for, and other costs relating to any
cost bond, supersedeas bond, or other appeal bond or its equivalent. Expenses, however, shall not include amounts paid in settlement by
Indemnitee or the amount of judgments or fines against Indemnitee.
2.10. “Independent
Counsel” shall mean a law firm or a member of a law firm with significant experience in matters of corporation law and which,
at the time indemnification is sought by Indemnitee, neither is, nor in the preceding five years has been, retained to represent: (i) the
Company or Indemnitee in any matter material to either such party (other than with respect to matters concerning the Indemnitee under
this Agreement, or of other indemnitees under similar indemnification agreements); or (ii) any other party to the Proceeding (as
defined below) giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term “Independent Counsel”
shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest
in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement.
2.11. References to “fines”
shall include any excise tax assessed on Indemnitee with respect to any employee benefit plan; references to “serving at the
request of the Company” shall include any service as a director, officer, employee, agent or fiduciary of the Company which
imposes duties on, or involves services by, such director, officer, employee, agent or fiduciary with respect to an employee benefit plan,
its participants or beneficiaries; and if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in the best
interests of the participants and beneficiaries of an employee benefit plan, Indemnitee shall be deemed to have acted in a manner
“not opposed to the best interests of the Company” as referred to in this Agreement.
2.12. The term “Person”
shall have the meaning as set forth in Sections 13(d) and 14(d) of the Exchange Act as in effect on the date hereof; provided,
however, that “Person” shall exclude: (i) the Company; (ii) any Subsidiaries (as defined below) of the Company;
(iii) any employment benefit plan of the Company or of a Subsidiary (as defined below) of the Company or of any corporation owned,
directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company;
and (iv) any trustee or other fiduciary holding securities under an employee benefit plan of the Company or of a Subsidiary (as defined
below) of the Company or of a corporation owned directly or indirectly by the stockholders of the Company in substantially the same proportions
as their ownership of stock of the Company.
2.13. The term “Proceeding”
shall include any threatened, pending or completed action, suit, arbitration, mediation, alternate dispute resolution mechanism, investigation,
inquiry, administrative hearing or any other actual, threatened or completed proceeding, whether brought in the right of the Company or
otherwise and whether of a civil (including intentional or unintentional tort claims), criminal, administrative, or investigative or related
nature, in which Indemnitee was, is, will or might be involved as a party or otherwise by reason of the fact that Indemnitee is or was
a director or officer of the Company, by reason of any action (or failure to act) taken by him or of any action (or failure to act) on
his part while acting as a director or officer of the Company, or by reason of the fact that he is or was serving at the request of the
Company as a director, officer, trustee, general partner, managing member, fiduciary, employee or agent of any other Enterprise, in each
case whether or not serving in such capacity at the time any liability or expense is incurred for which indemnification, reimbursement,
or advancement of expenses can be provided under this Agreement.
2.14. The term “Subsidiary,”
with respect to any Person, shall mean any corporation or other entity of which a majority of the voting power of the voting equity securities
or equity interest is owned, directly or indirectly, by that Person.
3.
INDEMNITY IN THIRD-PARTY PROCEEDINGS.
To the fullest extent permitted by applicable
law, the Company shall indemnify, hold harmless and exonerate Indemnitee in accordance with the provisions of this Section 3 if Indemnitee
was, is, or is threatened to be made, a party to or a participant (as a witness or otherwise) in any Proceeding, other than a Proceeding
by or in the right of the Company to procure a judgment in its favor. Pursuant to this Section 3, Indemnitee shall be indemnified,
held harmless and exonerated against all Expenses, judgments, liabilities, fines, penalties and amounts paid in settlement (including
all interest, assessments and other charges paid or payable in connection with or in respect of such Expenses, judgments, fines, penalties
and amounts paid in settlement) actually and reasonably incurred by Indemnitee or on his behalf in connection with such Proceeding or
any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner he reasonably believed to be in or not opposed to
the best interests of the Company and, in the case of a criminal Proceeding, had no reasonable cause to believe that his conduct was unlawful.
4.
INDEMNITY IN PROCEEDINGS BY OR IN THE RIGHT OF THE COMPANY.
To the fullest extent permitted by applicable
law, the Company shall indemnify, hold harmless and exonerate Indemnitee in accordance with the provisions of this Section 4 if Indemnitee
was, is, or is threatened to be made, a party to or a participant (as a witness or otherwise) in any Proceeding by or in the right of
the Company to procure a judgment in its favor. Pursuant to this Section 4, Indemnitee shall be indemnified, held harmless and
exonerated against all Expenses actually and reasonably incurred by him or on his behalf in connection with such Proceeding or any claim,
issue or matter therein, if Indemnitee acted in good faith and in a manner he reasonably believed to be in or not opposed to the best
interests of the Company. No indemnification, hold harmless or exoneration for Expenses shall be made under this Section 4 in respect
of any claim, issue or matter as to which Indemnitee shall have been finally adjudged by a court to be liable to the Company, unless and
only to the extent that any court in which the Proceeding was brought or the Delaware Court shall determine upon application that, despite
the adjudication of liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnification,
to be held harmless or to exoneration.
5.
INDEMNIFICATION FOR EXPENSES OF A PARTY WHO IS WHOLLY OR PARTLY SUCCESSFUL.
Notwithstanding any other provisions of this Agreement
except for Section 27, to the extent that Indemnitee is a party to (or a participant in) and is successful, on the merits or otherwise,
in any Proceeding or in defense of any claim, issue or matter therein, in whole or in part, the Company shall, to the fullest extent permitted
by applicable law, indemnify, hold harmless and exonerate Indemnitee against all Expenses actually and reasonably incurred by him in connection
therewith. If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more
but less than all claims, issues or matters in such Proceeding, the Company shall, to the fullest extent permitted by applicable law,
indemnify, hold harmless and exonerate Indemnitee against all Expenses actually and reasonably incurred by him or on his behalf in connection
with each successfully resolved claim, issue or matter. If the Indemnitee is not wholly successful in such Proceeding, the Company also
shall, to the fullest extent permitted by applicable law, indemnify, hold harmless and exonerate Indemnitee against all Expenses reasonably
incurred in connection with a claim, issue or matter related to any claim, issue, or matter on which the Indemnitee was successful. For
purposes of this Section 5 and without limitation, the termination of any claim, issue or matter in such a Proceeding by dismissal,
with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.
6.
INDEMNIFICATION FOR EXPENSES OF A WITNESS.
Notwithstanding any other provision of this Agreement
except for Section 27, to the extent that Indemnitee is, by reason of his Corporate Status, a witness in any Proceeding to which
Indemnitee is not a party, he shall, to the fullest extent permitted by applicable law, be indemnified, held harmless and exonerated against
all Expenses actually and reasonably incurred by him or on his behalf in connection therewith.
7.
ADDITIONAL INDEMNIFICATION, HOLD HARMLESS AND EXONERATION RIGHTS.
7.1. Notwithstanding any limitation
in Sections 3, 4, or 5, except for Section 27, the Company shall, to the fullest extent permitted by applicable law, indemnify, hold
harmless and exonerate Indemnitee if Indemnitee is a party to or threatened to be made a party to any Proceeding (including a Proceeding
by or in the right of the Company to procure a judgment in its favor) against all Expenses, judgments, fines, penalties and amounts paid
in settlement (including all interest, assessments and other charges paid or payable in connection with or in respect of such Expenses,
judgments, fines, penalties and amounts paid in settlement) actually and reasonably incurred by Indemnitee in connection with the Proceeding.
No indemnification, hold harmless or exoneration rights shall be available under this Section 7.1 on account of Indemnitee’s
conduct which constitutes a breach of Indemnitee’s duty of loyalty to the Company or its stockholders or is an act or omission not
in good faith or which involves intentional misconduct or a knowing violation of the law.
7.2. Notwithstanding any limitation
in Sections 3, 4, 5 or 7.1, except for Section 27, the Company shall, to the fullest extent permitted by applicable law, indemnify,
hold harmless and exonerate Indemnitee if Indemnitee is a party to or threatened to be made a party to any Proceeding (including a Proceeding
by or in the right of the Company to procure a judgment in its favor) against all Expenses, judgments, fines, penalties and amounts paid
in settlement (including all interest, assessments and other charges paid or payable in connection with or in respect of such Expenses,
judgments, fines, penalties and amounts paid in settlement) actually and reasonably incurred by Indemnitee in connection with the Proceeding.
8.
CONTRIBUTION IN THE EVENT OF JOINT LIABILITY.
8.1. To the fullest extent
permissible under applicable law, if the indemnification, hold harmless and/or exoneration rights provided for in this Agreement are unavailable
to Indemnitee in whole or in part for any reason whatsoever, the Company, in lieu of indemnifying, holding harmless or exonerating Indemnitee,
shall pay, in the first instance, the entire amount incurred by Indemnitee, whether for judgments, liabilities, fines, penalties, amounts
paid or to be paid in settlement and/or for Expenses, in connection with any Proceeding without requiring Indemnitee to contribute to
such payment, and the Company hereby waives and relinquishes any right of contribution it may have at any time against Indemnitee.
8.2. The Company shall not
enter into any settlement of any Proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such Proceeding)
unless such settlement provides for a full and final release of all claims asserted against Indemnitee.
8.3. The Company hereby agrees
to fully indemnify, hold harmless and exonerate Indemnitee from any claims for contribution which may be brought by officers, directors
or employees of the Company other than Indemnitee who may be jointly liable with Indemnitee.
9.
EXCLUSIONS.
Notwithstanding any provision in this Agreement
except for Section 27, the Company shall not be obligated under this Agreement to make any indemnification, hold harmless or exoneration
payment in connection with any claim made against Indemnitee: (a) for which payment has actually been received by or on behalf of
Indemnitee under any insurance policy or other indemnity provision, except with respect to any excess beyond the amount actually received
under any insurance policy, contract, agreement, other indemnity provision or otherwise; (b) for an accounting of profits made from
the purchase and sale (or sale and purchase) by Indemnitee of securities of the Company within the meaning of Section 16(b) of
the Exchange Act or similar provisions of state statutory law or common law; or (c) except as otherwise provided in Sections 14.5
and 14.6 hereof, prior to a Change in Control, in connection with any Proceeding (or any part of any Proceeding) initiated by Indemnitee,
including any Proceeding (or any part of any Proceeding) initiated by Indemnitee against the Company or its directors, officers, employees
or other indemnitees, unless (i) the Board authorized the Proceeding (or any part of any Proceeding) prior to its initiation or (ii) the
Company provides the indemnification, hold harmless or exoneration payment, in its sole discretion, pursuant to the powers vested in the
Company under applicable law.
10.
ADVANCES OF EXPENSES; DEFENSE OF CLAIM.
10.1. Notwithstanding any
provision of this Agreement to the contrary except for Section 27, and to the fullest extent not prohibited by applicable law, the
Company shall pay the Expenses incurred by Indemnitee (or reasonably expected by Indemnitee to be incurred by Indemnitee within three
months) in connection with any Proceeding within ten (10) days after the receipt by the Company of a statement or statements requesting
such advances from time to time, prior to the final disposition of any Proceeding. Advances shall be unsecured and interest free. Advances
shall be made without regard to Indemnitee’s ability to repay the Expenses and without regard to Indemnitee’s ultimate entitlement
to be indemnified, held harmless or exonerated under the other provisions of this Agreement. Advances shall include any and all reasonable
Expenses incurred pursuing a Proceeding to enforce this right of advancement, including Expenses incurred preparing and forwarding statements
to the Company to support the advances claimed. To the fullest extent required by applicable law, such payments of Expenses in advance
of the final disposition of the Proceeding shall be made only upon the Company’s receipt of an undertaking, by or on behalf of the
Indemnitee, to repay the advance to the extent that it is ultimately determined that Indemnitee is not entitled to be indemnified by the
Company under the provisions of this Agreement, the Charter, the Bylaws of the Company, applicable law or otherwise. This Section 10.1
shall not apply to any claim made by Indemnitee for which an indemnification, hold harmless or exoneration payment is excluded pursuant
to Section 9.
10.2. The Company will be
entitled to participate in the Proceeding at its own expense.
10.3. The Company shall not
settle any action, claim or proceeding (in whole or in part) which would impose any Expense, judgment, fine, penalty or limitation on
the Indemnitee without the Indemnitee’s prior written consent.
11.
PROCEDURE FOR NOTIFICATION AND APPLICATION FOR INDEMNIFICATION.
11.1 Indemnitee agrees to
notify promptly the Company in writing upon being served with any summons, citation, subpoena, complaint, indictment, information or other
document relating to any Proceeding or matter which may be subject to indemnification, hold harmless or exoneration rights, or advancement
of Expenses covered hereunder. The failure of Indemnitee to so notify the Company shall not relieve the Company of any obligation which
it may have to the Indemnitee under this Agreement, or otherwise.
11.2 Indemnitee may deliver
to the Company a written application to indemnify, hold harmless or exonerate Indemnitee in accordance with this Agreement. Such application(s) may
be delivered from time to time and at such time(s) as Indemnitee deems appropriate in his or her sole discretion. Following such
a written application for indemnification by Indemnitee, the Indemnitee’s entitlement to indemnification shall be determined according
to Section 12.1 of this Agreement.
12.
PROCEDURE UPON APPLICATION FOR INDEMNIFICATION.
12.1. A determination, if
required by applicable law, with respect to Indemnitee’s entitlement to indemnification shall be made in the specific case by one
of the following methods, which shall be at the election of Indemnitee: (i) by a majority vote of the Disinterested Directors, even
though less than a quorum of the Board (ii) by Independent Counsel in a written opinion to the Board, a copy of which shall be delivered
to Indemnitee; or (iii) by vote of the stockholders. The Company promptly will advise Indemnitee in writing with respect to any determination
that Indemnitee is or is not entitled to indemnification, including a description of any reason or basis for which indemnification has
been denied. If it is so determined that Indemnitee is entitled to indemnification, payment to Indemnitee shall be made within ten (10) days
after such determination. Indemnitee shall reasonably cooperate with the person, persons or entity making such determination with respect
to Indemnitee’s entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request
any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee
and reasonably necessary to such determination. Any costs or Expenses (including attorneys’ fees and disbursements) incurred by
Indemnitee in so cooperating with the person, persons or entity making such determination shall be borne by the Company (irrespective
of the determination as to Indemnitee’s entitlement to indemnification) and the Company hereby indemnifies and agrees to hold Indemnitee
harmless therefrom.
12.2. In the event the determination
of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 12.1 hereof, the Independent Counsel shall
be selected as provided in this Section 12.2. The Independent Counsel shall be selected by Indemnitee (unless Indemnitee shall request
that such selection be made by the Board), and Indemnitee shall give written notice to the Company advising it of the identity of the
Independent Counsel so selected and certifying that the Independent Counsel so selected meets the requirements of “Independent Counsel”
as defined in Section 2 of this Agreement. If the Independent Counsel is selected by the Board, the Company shall give written notice
to Indemnitee advising him of the identity of the Independent Counsel so selected and certifying that the Independent Counsel so selected
meets the requirements of “Independent Counsel” as defined in Section 2 of this Agreement. In either event, Indemnitee
or the Company, as the case may be, may, within ten (10) days after such written notice of selection shall have been received, deliver
to the Company or to Indemnitee, as the case may be, a written objection to such selection; provided, however, that such
objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of “Independent
Counsel” as defined in Section 2 of this Agreement, and the objection shall set forth with particularity the factual basis
of such assertion. Absent a proper and timely objection, the person so selected shall act as Independent Counsel. If such written objection
is so made and substantiated, the Independent Counsel so selected may not serve as Independent Counsel unless and until such objection
is withdrawn or a court of competent jurisdiction has determined that such objection is without merit. If, within twenty (20) days after
submission by Indemnitee of a written request for indemnification pursuant to Section 11.1 hereof, no Independent Counsel shall have
been selected and not objected to, either the Company or Indemnitee may petition the Delaware Court for resolution of any objection which
shall have been made by the Company or Indemnitee to the other’s selection of Independent Counsel and/or for the appointment as
Independent Counsel of a person selected by the Delaware Court, and the person with respect to whom all objections are so resolved or
the person so appointed shall act as Independent Counsel under Section 12.1 hereof. Upon the due commencement of any judicial proceeding
or arbitration pursuant to Section 14.1 of this Agreement, Independent Counsel shall be discharged and relieved of any further
responsibility in such capacity (subject to the applicable standards of professional conduct then prevailing).
12.3. The Company agrees to
pay the reasonable fees and expenses of Independent Counsel and to fully indemnify and hold harmless such Independent Counsel against
any and all Expenses, claims, liabilities and damages arising out of or relating to this Agreement or its engagement pursuant hereto.
13.
PRESUMPTIONS AND EFFECT OF CERTAIN PROCEEDINGS.
13.1. In making a determination
with respect to entitlement to indemnification hereunder, the person, persons or entity making such determination shall presume that Indemnitee
is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 11.2
of this Agreement, and the Company shall have the burden of proof to overcome that presumption in connection with the making by any person,
persons or entity of any determination contrary to that presumption. Neither the failure of the Company (including by its directors or
Independent Counsel) to have made a determination prior to the commencement of any action pursuant to this Agreement that indemnification
is proper in the circumstances because Indemnitee has met the applicable standard of conduct, nor an actual determination by the Company
(including by its directors or Independent Counsel) that Indemnitee has not met such applicable standard of conduct, shall be a defense
to the action or create a presumption that Indemnitee has not met the applicable standard of conduct.
13.2. If the person, persons
or entity empowered or selected under Section 12 of this Agreement to determine whether Indemnitee is entitled to indemnification
shall not have made a determination within thirty (30) days after receipt by the Company of the request therefor, the requisite determination
of entitlement to indemnification shall be deemed to have been made and Indemnitee shall be entitled to such indemnification, absent (i) a
misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially
misleading, in connection with the request for indemnification, or (ii) a final judicial determination that any or all such indemnification
is expressly prohibited under applicable law; provided, however, that such 30-day period may be extended for a reasonable
time, not to exceed an additional fifteen (15) days, if the person, persons or entity making the determination with respect to entitlement
to indemnification in good faith requires such additional time for the obtaining or evaluating of documentation and/or information relating
thereto.
13.3. The termination of any
Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of nolo contendere or
its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself adversely affect the right of Indemnitee
to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner which he reasonably believed to be
in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause
to believe that his conduct was unlawful.
13.4. For purposes of any
determination of good faith, Indemnitee shall be deemed to have acted in good faith if Indemnitee’s action is based on the
records or books of account of the Enterprise, including financial statements, or on information supplied to Indemnitee by the directors
or officers of the Enterprise in the course of their duties, or on the advice of legal counsel for the Enterprise, its Board, any committee
of the Board or any director, or on information or records given or reports made to the Enterprise, its Board, any committee of the Board
or any director, by an independent certified public accountant or by an appraiser or other expert selected by the Enterprise, its Board,
any committee of the Board or any director. The provisions of this Section 13.4 shall not be deemed to be exclusive or to limit in
any way the other circumstances in which the Indemnitee may be deemed or found to have met the applicable standard of conduct set forth
in this Agreement.
13.5. The knowledge and/or
actions, or failure to act, of any other director, officer, trustee, partner, managing member, fiduciary, agent or employee of the Enterprise
shall not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement.
14.
REMEDIES OF INDEMNITEE.
14.1. In the event that (i) a
determination is made pursuant to Section 12 of this Agreement that Indemnitee is not entitled to indemnification under this Agreement,
(ii) advancement of Expenses, to the fullest extent permitted by applicable law, is not timely made pursuant to Section 10 of
this Agreement, (iii) no determination of entitlement to indemnification shall have been made pursuant to Section 12.1 of this
Agreement within thirty (30) days after receipt by the Company of the request for indemnification, (iv) payment of indemnification
is not made pursuant to Sections 5, 6, 7 or the last sentence of Section 12.1 of this Agreement within ten (10) days after receipt
by the Company of a written request therefor, (v) a contribution payment is not made in a timely manner pursuant to Section 8
of this Agreement, (vi) payment of indemnification pursuant to Section 3 or 4 of this Agreement is not made within ten (10) days
after a determination has been made that Indemnitee is entitled to indemnification, or (vii) payment to Indemnitee pursuant to any
hold harmless or exoneration rights under this Agreement or otherwise is not made within ten (10) days after receipt by the Company
of a written request therefor, Indemnitee shall be entitled to an adjudication by the Delaware Court to such indemnification, hold
harmless, exoneration, contribution or advancement rights. Alternatively, Indemnitee, at his option, may seek an award in arbitration
to be conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association. Except
as set forth herein, the provisions of Delaware law (without regard to its conflict of laws rules) shall apply to any such arbitration.
The Company shall not oppose Indemnitee’s right to seek any such adjudication or award in arbitration.
14.2. In the event that a
determination shall have been made pursuant to Section 12.1 of this Agreement that Indemnitee is not entitled to indemnification,
any judicial proceeding or arbitration commenced pursuant to this Section 14 shall be conducted in all respects as a de novo trial,
or arbitration, on the merits and Indemnitee shall not be prejudiced by reason of that adverse determination. In any judicial proceeding
or arbitration commenced pursuant to this Section 14, Indemnitee shall be presumed to be entitled to be indemnified, held harmless,
exonerated to receive advances of Expenses under this Agreement and the Company shall have the burden of proving Indemnitee is not entitled
to be indemnified, held harmless, exonerated and to receive advances of Expenses, as the case may be, and the Company may not refer to
or introduce into evidence any determination pursuant to Section 12.1 of this Agreement adverse to Indemnitee for any purpose. If
Indemnitee commences a judicial proceeding or arbitration pursuant to this Section 14, Indemnitee shall not be required to reimburse
the Company for any advances pursuant to Section 10 until a final determination is made with respect to Indemnitee’s entitlement
to indemnification (as to which all rights of appeal have been exhausted or lapsed).
14.3. If a determination shall
have been made pursuant to Section 12.1 of this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound
by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 14, absent (i) a misstatement
by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading,
in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law.
14.4. The Company shall be
precluded from asserting in any judicial proceeding or arbitration commenced pursuant to this Section 14 that the procedures and
presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court or before any such arbitrator
that the Company is bound by all the provisions of this Agreement.
14.5. The Company shall indemnify
and hold harmless Indemnitee to the fullest extent permitted by law against all Expenses and, if requested by Indemnitee, shall (within
ten (10) days after the Company’s receipt of such written request) pay to Indemnitee, to the fullest extent permitted by applicable
law, such Expenses which are incurred by Indemnitee in connection with any judicial proceeding or arbitration brought by Indemnitee (i) to
enforce his rights under, or to recover damages for breach of, this Agreement or any other indemnification, hold harmless, exoneration,
advancement or contribution agreement or provision of the Charter, or the Company’s Bylaws now or hereafter in effect; or (ii) for
recovery or advances under any insurance policy maintained by any person for the benefit of Indemnitee, regardless of the outcome and
whether Indemnitee ultimately is determined to be entitled to such indemnification, hold harmless or exoneration right, advancement, contribution
or insurance recovery, as the case may be (unless such judicial proceeding or arbitration was not brought by Indemnitee in good faith).
14.6. Interest shall be paid
by the Company to Indemnitee at the legal rate under Delaware law for amounts which the Company indemnifies, holds harmless or exonerates,
or is obliged to indemnify, hold harmless or exonerate for the period commencing with the date on which Indemnitee requests indemnification,
to be held harmless, exonerated, contribution, reimbursement or advancement of any Expenses and ending with the date on which such payment
is made to Indemnitee by the Company.
15.
SECURITY.
Notwithstanding anything herein to the contrary
except for Section 27, to the extent requested by the Indemnitee and approved by the Board, the Company may at any time and from
time to time provide security to the Indemnitee for the Company’s obligations hereunder through an irrevocable bank line of credit,
funded trust or other collateral. Any such security, once provided to the Indemnitee, may not be revoked or released without the prior
written consent of the Indemnitee.
16. NON-EXCLUSIVITY; SURVIVAL OF RIGHTS; INSURANCE;
SUBROGATION
16.1. The rights of Indemnitee
as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under
applicable law, the Charter, the Company’s Bylaws, any agreement, a vote of stockholders or a resolution of directors, or otherwise.
No amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under
this Agreement in respect of any Proceeding (regardless of when such Proceeding is first threatened, commenced or completed) arising out
of, or related to, any action taken or omitted by such Indemnitee in his Corporate Status prior to such amendment, alteration or repeal.
To the extent that a change in applicable law, whether by statute or judicial decision, permits greater indemnification, hold harmless
or exoneration rights or advancement of Expenses than would be afforded currently under the Charter, the Company’s Bylaws or this
Agreement, then this Agreement (without any further action by the parties hereto) shall automatically be deemed to be amended to require
that the Company indemnify Indemnitee to the fullest extent permitted by law. No right or remedy herein conferred is intended to be exclusive
of any other right or remedy, and every other right and remedy shall be cumulative and in addition to every other right and remedy given
hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder,
or otherwise, shall not prevent the concurrent assertion or employment of any other right or remedy.
16.2. The DGCL and the Company’s
Bylaws permit the Company to purchase and maintain insurance or furnish similar protection or make other arrangements including, but not
limited to, providing a trust fund, letter of credit, or surety bond (“Indemnification Arrangements”) on behalf
of Indemnitee against any liability asserted against him or incurred by or on behalf of him or in such capacity as a director, officer,
employee or agent of the Company, or arising out of his status as such, whether or not the Company would have the power to indemnify him
against such liability under the provisions of this Agreement or under the DGCL, as it may then be in effect. The purchase, establishment,
and maintenance of any such Indemnification Arrangement shall not in any way limit or affect the rights and obligations of the Company
or of Indemnitee under this Agreement except as expressly provided herein, and the execution and delivery of this Agreement by the Company
and the Indemnitee shall not in any way limit or affect the rights and obligations of the Company or the other party or parties thereto
under any such Indemnification Arrangement.
16.3. To the extent that the
Company maintains an insurance policy or policies providing liability insurance for directors, officers, trustees, partners, managing
members, fiduciaries, employees, or agents of the Company or of any other Enterprise which such person serves at the request of the Company, Indemnitee
shall be covered by such policy or policies in accordance with its or their terms to the maximum extent of the coverage available for
any such director, officer, trustee, partner, managing member, fiduciary, employee or agent under such policy or policies. If, at the
time the Company receives notice from any source of a Proceeding as to which Indemnitee is a party or a participant (as a witness or otherwise),
the Company has director and officer liability insurance in effect, the Company shall give prompt notice of such Proceeding to the insurers
in accordance with the procedures set forth in the respective policies. The Company shall thereafter take all necessary or desirable action
to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such Proceeding in accordance with the terms
of such policies.
16.4. In the event of any
payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee,
who shall execute all papers required and take all action necessary to secure such rights, including execution of such documents as are
necessary to enable the Company to bring suit to enforce such rights.
16.5. The Company’s
obligation to indemnify, hold harmless, exonerate or advance Expenses hereunder to Indemnitee who is or was serving at the request of
the Company as a director, officer, trustee, partner, managing member, fiduciary, employee or agent of any other Enterprise shall be reduced
by any amount Indemnitee has actually received as indemnification, hold harmless or exoneration payments or advancement of expenses from
such Enterprise. Notwithstanding any other provision of this Agreement to the contrary except for Section 27, (i) Indemnitee
shall have no obligation to reduce, offset, allocate, pursue or apportion any indemnification, hold harmless, exoneration, advancement,
contribution or insurance coverage among multiple parties possessing such duties to Indemnitee prior to the Company’s satisfaction
and performance of all its obligations under this Agreement, and (ii) the Company shall perform fully its obligations under this
Agreement without regard to whether Indemnitee holds, may pursue or has pursued any indemnification, advancement, hold harmless, exoneration,
contribution or insurance coverage rights against any person or entity other than the Company.
17.
DURATION OF AGREEMENT.
All agreements and obligations of the Company
contained herein shall continue during the period Indemnitee serves as a director or officer of the Company or as a director, officer,
trustee, partner, managing member, fiduciary, employee or agent of any other corporation, partnership, joint venture, trust, employee
benefit plan or other Enterprise which Indemnitee serves at the request of the Company and shall continue thereafter so long as Indemnitee
shall be subject to any possible Proceeding (including any rights of appeal thereto and any Proceeding commenced by Indemnitee pursuant
to Section 14 of this Agreement) by reason of his Corporate Status, whether or not he is acting in any such capacity at the time
any liability or expense is incurred for which indemnification can be provided under this Agreement.
18.
SEVERABILITY.
If any provision or provisions of this Agreement
shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of
the remaining provisions of this Agreement (including, without limitation, each portion of any Section, paragraph or sentence of this
Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable)
shall not in any way be affected or impaired thereby and shall remain enforceable to the fullest extent permitted by law; (b) such
provision or provisions shall be deemed reformed to the extent necessary to conform to applicable law and to give the maximum effect to
the intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement (including, without limitation,
each portion of any Section, paragraph or sentence of this Agreement containing any such provision held to be invalid, illegal or unenforceable,
that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested thereby.
19.
ENFORCEMENT AND BINDING EFFECT.
19.1. The Company expressly
confirms and agrees that it has entered into this Agreement and assumed the obligations imposed on it hereby in order to induce Indemnitee
to serve as a director, officer or key employee of the Company, and the Company acknowledges that Indemnitee is relying upon this Agreement
in serving as a director, officer or key employee of the Company.
19.2. Without limiting any
of the rights of Indemnitee under the Charter or Bylaws of the Company as they may be amended from time to time, this Agreement constitutes
the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings,
oral, written and implied, between the parties hereto with respect to the subject matter hereof.
19.3. The indemnification,
hold harmless, exoneration and advancement of expenses rights provided by or granted pursuant to this Agreement shall be binding upon
and be enforceable by the parties hereto and their respective successors and assigns (including any direct or indirect successor by purchase,
merger, consolidation or otherwise to all or substantially all of the business or assets of the Company), shall continue as to an Indemnitee
who has ceased to be a director, officer, employee or agent of the Company or of any other Enterprise at the Company’s request,
and shall inure to the benefit of Indemnitee and his or her spouse, assigns, heirs, devisees, executors and administrators and other legal
representatives.
19.4. The Company shall require
and cause any successor (whether direct or indirect by purchase, merger, consolidation or otherwise) to all, substantially all or a substantial
part, of the business and/or assets of the Company, by written agreement in form and substance satisfactory to the Indemnitee, expressly
to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform
if no such succession had taken place.
19.5. The Company and Indemnitee
agree herein that a monetary remedy for breach of this Agreement, at some later date, may be inadequate, impracticable and difficult of
proof, and further agree that such breach may cause Indemnitee irreparable harm. Accordingly, the parties hereto agree that Indemnitee
may enforce this Agreement by seeking, among other things, injunctive relief and/or specific performance hereof, without any necessity
of showing actual damage or irreparable harm and that by seeking injunctive relief and/or specific performance, Indemnitee shall
not be precluded from seeking or obtaining any other relief to which he may be entitled. The Company and Indemnitee further agree that
Indemnitee shall be entitled to such specific performance and injunctive relief, including temporary restraining orders, preliminary injunctions
and permanent injunctions, without the necessity of posting bonds or other undertaking in connection therewith. The Company acknowledges
that in the absence of a waiver, a bond or undertaking may be required of Indemnitee by a Court of competent jurisdiction and the Company
hereby waives any such requirement of such a bond or undertaking.
20.
MODIFICATION AND WAIVER.
No supplement, modification or amendment of this
Agreement shall be binding unless executed in writing by the parties hereto. No waiver of any of the provisions of this Agreement shall
be deemed or shall constitute a waiver of any other provisions of this Agreement nor shall any waiver constitute a continuing waiver.
21.
NOTICES.
All notices, requests, demands and other communications
under this Agreement shall be in writing and shall be deemed to have been duly given (i) if delivered by hand and receipted for by
the party to whom said notice or other communication shall have been directed, or (ii) mailed by certified or registered mail with
postage prepaid, on the third (3rd) business day after the date on which it is so mailed:
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(a)
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If to Indemnitee, at the address indicated on the signature page of this Agreement, or such other address as Indemnitee shall provide in writing to the Company.
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(b)
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If to the Company, to:
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FTAC Emerald Acquisition Corp.
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2929 Arch Street, Suite 1703
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Philadelphia, PA 19104-2870
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Attn: Bracebridge H. Young, Jr.
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With a copy, which shall not constitute notice, to each of the following:
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Reed Smith LLP
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599 Lexington Avenue, 22nd Floor
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New York, NY 10022
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Attn: Ari Edelman
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or to any other address as
may have been furnished to Indemnitee in writing by the Company.
22.
APPLICABLE LAW AND CONSENT TO JURISDICTION.
This Agreement and the legal relations among the
parties shall be governed by, and construed and enforced in accordance with, the laws of the State of Delaware, without regard to its
conflict of laws rules. Except with respect to any arbitration commenced by Indemnitee pursuant to Section 14(a) of this Agreement,
the Company and Indemnitee hereby irrevocably and unconditionally: (a) agree that any action or proceeding arising out of or in connection
with this Agreement shall be brought only in the Delaware Court and not in any other state or federal court in the United States of America
or any court in any other country; (b) consent to submit to the exclusive jurisdiction of the Delaware Court for purposes of any
action or proceeding arising out of or in connection with this Agreement; (c) waive any objection to the laying of venue of any such
action or proceeding in the Delaware Court; and (d) waive, and agree not to plead or to make, any claim that any such action or proceeding
brought in the Delaware Court has been brought in an improper or inconvenient forum, or is subject (in whole or in part) to a jury trial.
23.
IDENTICAL COUNTERPARTS.
This Agreement may be executed in two or more
counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the
same Agreement. Only one such counterpart signed by the party against whom enforceability is sought needs to be produced to evidence the
existence of this Agreement.
24.
MISCELLANEOUS.
Use of the masculine pronoun shall be deemed to
include usage of the feminine pronoun where appropriate. The headings of the paragraphs of this Agreement are inserted for convenience
only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof.
25.
PERIOD OF LIMITATIONS.
No legal action shall be brought and no cause
of action shall be asserted by or in the right of the Company against Indemnitee, Indemnitee’s spouse, heirs, executors or
personal or legal representatives after the expiration of two years from the date of accrual of such cause of action, and any claim or
cause of action of the Company shall be extinguished and deemed released unless asserted by the timely filing of a legal action within
such two-year period; provided, however, that if any shorter period of limitations is otherwise applicable to any such cause
of action such shorter period shall govern.
26.
ADDITIONAL ACTS.
If for the validation of any of the provisions
in this Agreement any act, resolution, approval or other procedure is required, the Company undertakes to cause such act, resolution,
approval or other procedure to be affected or adopted in a manner that will enable the Company to fulfill its obligations under this Agreement.
27.
WAIVER OF CLAIMS TO TRUST ACCOUNT.
Notwithstanding anything contained herein to the
contrary, Indemnitee hereby agrees that it does not have any right, title, interest or claim of any kind (each, a “Claim”)
in or to any monies in the trust account established in connection with the Company’s initial public offering for the benefit of
the Company and holders of shares issued in such offering, and hereby waives any Claim it may have in the future as a result of, or arising
out of, any services provided to the Company and will not seek recourse against such trust account for any reason whatsoever. Accordingly, Indemnitee
acknowledges and agrees that any indemnification provided hereto will only be able to be satisfied by the Company if (i) the Company
has sufficient funds outside of the trust account to satisfy its obligations hereunder or (ii) the Company consummates an initial
business combination.
[SIGNATURE PAGE FOLLOWS]
IN
WITNESS WHEREOF, the parties hereto have caused this Indemnity Agreement to be signed as of the day and year first above written.
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FTAC EMERALD ACQUISITION CORP.
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By:
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Name:
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Bracebridge H. Young, Jr.
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Title:
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President and Chief Executive Officer
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INDEMNITEE
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Name:
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Address:
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[Signature page to Indemnity Agreement]
Exhibit
10.7(a)
THE
OFFER AND SALE OF THIS PROMISSORY NOTE (THIS “NOTE”) HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”). THIS NOTE HAS BEEN ACQUIRED FOR INVESTMENT ONLY AND MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED
IN THE ABSENCE OF REGISTRATION OF THE RESALE THEREOF UNDER THE SECURITIES ACT OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY IN FORM,
SCOPE AND SUBSTANCE TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.
PROMISSORY NOTE
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Principal Amount: Up to $300,000
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Dated as of June 3, 2021
New York, New York
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EMERALD
ESG ACQUISITION CORP., a Delaware corporation and blank check company (the “Maker”), promises to pay to the order
of EMERALD ESG SPONSOR, LLC LLC, a Delaware limited liability company or its registered assigns or successors in interest (together, the
“Payee”), the principal sum of up to Three Hundred Thousand Dollars ($300,000) (the “Maximum Amount”)
in lawful money of the United States of America, on the terms and conditions described below. All payments on this Note shall be made
by check or wire transfer of immediately available funds, or as otherwise determined by Maker, to such account as Payee may from time
to time designate by Notice (as defined in Section 9) to Maker in accordance with the provisions of this Note.
1. Principal.
The principal balance of this Note shall be payable by Maker on the earlier of: (i) December 31, 2021 (the “Maturity Date”)
or (ii) the date on which Maker consummates an initial public offering of its securities (the “IPO”). The principal
balance may be prepaid at any time. Under no circumstances shall any individual, including but not limited to any officer, director,
employee or shareholder of Maker, be obligated personally for any obligations or liabilities of Maker hereunder.
2. Interest. No
interest shall accrue on the unpaid principal balance of this Note.
3. Drawdown
Requests. Maker and Payee agree that Maker may request from the Payee or its affiliates up to the Maximum Amount for costs reasonably
related to Maker’s initial public offering of its securities (which amount shall include the $0.00 funded to date by the Payee
or its affiliates). The principal of this Note may be drawn down from time to time prior to the earlier of: (i) December 31, 2021 or
(ii) the date on which Maker consummates an initial public offering of its securities, upon written request from Maker to Payee (each,
a “Drawdown Request”). Each Drawdown Request must state the amount to be drawn down, and must not be an amount less
than Ten Thousand Dollars ($10,000), unless agreed upon by Maker and Payee. Payee shall fund each Drawdown Request no later than five
business days after receipt of a Drawdown Request; provided, however, that the maximum amount of drawdowns collectively under
this Note shall not exceed the Maximum Amount. Once an amount is drawn down under this Note, such amount shall not be available for future
Drawdown Requests, even if such amount is prepaid. No fees, payments or other amounts shall be due to Payee in connection with, or as
a result of, any Drawdown Request by Maker. Notwithstanding the foregoing, all payments shall be applied, first, to payment in
full of any costs incurred in the collection of any sum due under this Note, including (without limitation) reasonable attorneys’
fees, and second, to the reduction of the unpaid principal balance of this Note.
4. Application
of Payments. All payments shall be applied, first, to payment in full of any costs incurred in the collection of any sum due
under this Note, including (without limitation) reasonable attorney’s fees, second, to the payment in full of any late charges,
and third, to the reduction of the unpaid principal balance of this Note.
5. Events of Default. The following events shall constitute an event of default (“Event of Default”):
5.1 Failure to Make Required Payments. The failure by Maker to pay the principal amount due pursuant to this Note within five
business days of the Maturity Date.
5.2 Voluntary
Bankruptcy, Etc. The: (a) commencement by Maker of a voluntary case under any applicable bankruptcy, insolvency, reorganization,
rehabilitation or other similar law; (b) consent by Maker to the appointment of or taking possession by a receiver, liquidator, assignee,
trustee, custodian, sequestrator (or other similar official) of Maker for any substantial part of its property, (c) making by Maker of
any assignment for the benefit of creditors; (d) the failure of Maker generally to pay its debts as such debts become due; or (e) taking
of any corporate action by Maker in furtherance of any of the foregoing events described in Section 5.2(a) – Section
5.2(d).
5.3 Involuntary
Bankruptcy, Etc. The: (a)(i) entry of a decree or order for relief by a court having jurisdiction in the premises in respect of Maker
in an involuntary case under any applicable bankruptcy, insolvency or other similar law, (ii) appointment of a receiver, liquidator,
assignee, custodian, trustee, sequestrator (or similar official) of Maker or for any substantial part of its property, or (iii) the ordering
of the winding-up or liquidation of Maker’s affairs; and (b) continuance of any such decree, appointment, or order unstayed and
in effect for a period of 60 consecutive days.
6. Remedies.
6.1 Upon
the occurrence of an Event of Default specified in Section 5.1, Payee may, by Notice to Maker, declare this Note to be due immediately
and payable by Maker, whereupon the unpaid principal amount of this Note, and all other amounts payable hereunder, shall become immediately
due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived, notwithstanding
anything contained herein or in the documents evidencing the same to the contrary.
6.2 Upon
the occurrence of an Event of Default specified in Section 5.2 and Section 5.3, the unpaid principal balance of this Note,
and all other sums payable with regard to this Note, shall automatically and immediately become due and payable by Maker, in all cases
without any action on the part of Payee.
7. Waivers.
Maker and all endorsers and guarantors of, and sureties for, this Note waive: (a) presentment for payment, demand, notice of dishonor,
protest, and notice of protest with regard to the Note; (b) all errors, defects and imperfections in any proceedings instituted by Payee
under the terms of this Note; and (c) all benefits that might accrue to Maker by virtue of any present or future laws (i) exempting any
property, real or personal, or any part of the proceeds arising from any sale of any such real or personal property, from attachment,
levy or sale under execution, or (ii) providing for any stay of execution, exemption from civil process, or extension of time for payment.
Maker agrees that any real estate that may be levied upon pursuant to a judgment obtained by virtue hereof or any writ of execution issued
hereon, may be sold upon any such writ in whole or in part in any order desired by Payee.
8. Unconditional
Liability. Maker hereby waives all notices in connection with the delivery, acceptance, performance, default, or enforcement of the
payment of this Note, and agrees that Maker’s liability shall be unconditional, without regard to the liability of any other party,
and shall not be affected in any manner by any indulgence, extension of time, renewal, waiver or modification granted or consented to
by Payee. Maker consents to any and all extensions of time, renewals, waivers, or modifications that may be granted by Payee with respect
to the payment or other provisions of this Note. Maker agrees that additional makers, endorsers, guarantors, or sureties may become parties
hereto without either any Notice to Maker or any bearing on Maker’s liability hereunder.
9. Notices.
All notices, requests, consents, claims, demands, waivers, and other communications hereunder (each, a “Notice”)
shall be in writing and addressed to the parties at the addresses set forth on the first page of this Agreement (or to such other address
that may be designated by the receiving party from time to time in accordance with this Section 9). A Notice shall be deemed to
have been given (a) when delivered by hand (with written confirmation of receipt); (b) when received by the addressee if sent by a nationally
recognized overnight courier (receipt requested); (c) on the date sent by facsimile or email (with confirmation of transmission) if sent
during normal business hours of the recipient, and on the next business day if sent after normal business hours of the recipient; or
(d) on the third day after the date mailed, by certified or registered mail (in each case, return receipt requested, postage pre-paid).
.
10. Construction. THIS
NOTE SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF NEW YORK, WITHOUT REGARD TO CONFLICT OF LAW PROVISIONS THEREOF.
11. Severability.
Any provision contained in this Note which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such
prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.
12. Trust
Waiver. Notwithstanding anything herein to the contrary, Payee hereby waives any and all right, title, interest or claim of any kind
(each, a “Claim”) in or to any distribution of or from the trust account to be established (the “Trust Account”),
in which the proceeds of both the (a) IPO (including the deferred underwriters discounts and commissions) and (b) sale of the warrants
to be issued in a private placement to occur at the closing of the IPO are to be deposited, as described in greater detail in the Registration
Statement on Form S-1 and prospectus to be filed with the Securities and Exchange Commission in connection with the IPO. Payee hereby
agrees not to seek recourse, reimbursement, payment or satisfaction for any Claim against the Trust Account for any reason whatsoever.
13. Amendment;
Waiver. Any amendment hereto or waiver of any provision hereof may be made with, and only with, the written consent of both Maker
and Payee.
14. Assignment.
No assignment or transfer of this Note or any rights or obligations hereunder may be made by any party hereto (by operation of law or
otherwise) without the prior written consent of the other party hereto. Any attempted assignment without the required consent shall be
void.
[Signature page follows]
IN
WITNESS WHEREOF, Maker, intending to be legally bound hereby, has caused this Note to be duly executed by the undersigned as
of the day and year first above written.
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EMERALD ESG ACQUISITION CORP.
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Name: Brace Young
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Title: Co-President and Co-CEO
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[Signature Page to Promissory Note]
Exhibit 10.7(b)
THE
OFFER AND SALE OF THIS PROMISSORY NOTE (THIS “NOTE”) HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”). THIS NOTE HAS BEEN ACQUIRED FOR INVESTMENT ONLY AND MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED
IN THE ABSENCE OF REGISTRATION OF THE RESALE THEREOF UNDER THE SECURITIES ACT OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY IN FORM,
SCOPE AND SUBSTANCE TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.
AMENDED AND RESTATED
PROMISSORY NOTE
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Principal Amount: Up to $300,000
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Dated as of October 19, 2021
New York, New York
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EMERALD
ESG ACQUISITION CORP., a Delaware corporation and blank check company (the “Maker”), promises to pay to the order
of EMERALD ESG SPONSOR, LLC LLC, a Delaware limited liability company or its registered assigns or successors in interest (together, the
“Payee”), the principal sum of up to Three Hundred Thousand Dollars ($300,000) (the “Maximum Amount”)
in lawful money of the United States of America, on the terms and conditions described below. All payments on this Note shall be made
by check or wire transfer of immediately available funds, or as otherwise determined by Maker, to such account as Payee may from time
to time designate by Notice (as defined in Section 9) to Maker in accordance with the provisions of this Note.
1. Amendment
and Restatement. This Amended and Restated Promissory Note is made and entered into as of the date first above written and effective
as of June 3, 2021, by and between Maker and Payee, and shall amend and restate in its entirety the Promissory Note between the undersigned
executed as of June 3, 2021.
2. Principal.
The principal balance of this Note shall be payable by Maker on the earlier of: (i) March 31, 2022 (the “Maturity Date”)
or (ii) the date on which Maker consummates an initial public offering of its securities (the “IPO”). The principal
balance may be prepaid at any time. Under no circumstances shall any individual, including but not limited to any officer, director,
employee or shareholder of Maker, be obligated personally for any obligations or liabilities of Maker hereunder.
3. Interest. No
interest shall accrue on the unpaid principal balance of this Note.
4. Drawdown
Requests. Maker and Payee agree that Maker may request from the Payee or its affiliates up to the Maximum Amount for costs reasonably
related to Maker’s initial public offering of its securities (which amount shall include the $0.00 funded to date by the Payee
or its affiliates). The principal of this Note may be drawn down from time to time prior to the earlier of: (i) March 31, 2022 or (ii)
the date on which Maker consummates an initial public offering of its securities, upon written request from Maker to Payee (each, a “Drawdown
Request”). Each Drawdown Request must state the amount to be drawn down, and must not be an amount less than Ten Thousand Dollars
($10,000), unless agreed upon by Maker and Payee. Payee shall fund each Drawdown Request no later than five business days after receipt
of a Drawdown Request; provided, however, that the maximum amount of drawdowns collectively under this Note shall not exceed the
Maximum Amount. Once an amount is drawn down under this Note, such amount shall not be available for future Drawdown Requests, even if
such amount is prepaid. No fees, payments or other amounts shall be due to Payee in connection with, or as a result of, any Drawdown
Request by Maker. Notwithstanding the foregoing, all payments shall be applied, first, to payment in full of any costs incurred
in the collection of any sum due under this Note, including (without limitation) reasonable attorneys’ fees, and second,
to the reduction of the unpaid principal balance of this Note.
5. Application
of Payments. All payments shall be applied, first, to payment in full of any costs incurred in the collection of any sum due
under this Note, including (without limitation) reasonable attorney’s fees, second, to the payment in full of any late charges,
and third, to the reduction of the unpaid principal balance of this Note.
6. Events
of Default. The following events shall constitute an event of default (“Event of Default”):
6.1 Failure
to Make Required Payments. The failure by Maker to pay the principal amount due pursuant to this Note within five business days of
the Maturity Date.
6.2 Voluntary
Bankruptcy, Etc. The: (a) commencement by Maker of a voluntary case under any applicable bankruptcy, insolvency, reorganization,
rehabilitation or other similar law; (b) consent by Maker to the appointment of or taking possession by a receiver, liquidator, assignee,
trustee, custodian, sequestrator (or other similar official) of Maker for any substantial part of its property, (c) making by Maker of
any assignment for the benefit of creditors; (d) the failure of Maker generally to pay its debts as such debts become due; or (e) taking
of any corporate action by Maker in furtherance of any of the foregoing events described in Section 5.2(a) – Section
5.2(d).
6.3 Involuntary
Bankruptcy, Etc. The: (a)(i) entry of a decree or order for relief by a court having jurisdiction in the premises in respect of Maker
in an involuntary case under any applicable bankruptcy, insolvency or other similar law, (ii) appointment of a receiver, liquidator,
assignee, custodian, trustee, sequestrator (or similar official) of Maker or for any substantial part of its property, or (iii) the ordering
of the winding-up or liquidation of Maker’s affairs; and (b) continuance of any such decree, appointment, or order unstayed and
in effect for a period of 60 consecutive days.
7. Remedies.
7.1 Upon
the occurrence of an Event of Default specified in Section 5.1, Payee may, by Notice to Maker, declare this Note to be due immediately
and payable by Maker, whereupon the unpaid principal amount of this Note, and all other amounts payable hereunder, shall become immediately
due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived, notwithstanding
anything contained herein or in the documents evidencing the same to the contrary.
7.2 Upon
the occurrence of an Event of Default specified in Section 5.2 and Section 5.3, the unpaid principal balance of this Note,
and all other sums payable with regard to this Note, shall automatically and immediately become due and payable by Maker, in all cases
without any action on the part of Payee.
8. Waivers.
Maker and all endorsers and guarantors of, and sureties for, this Note waive: (a) presentment for payment, demand, notice of dishonor,
protest, and notice of protest with regard to the Note; (b) all errors, defects and imperfections in any proceedings instituted by Payee
under the terms of this Note; and (c) all benefits that might accrue to Maker by virtue of any present or future laws (i) exempting any
property, real or personal, or any part of the proceeds arising from any sale of any such real or personal property, from attachment,
levy or sale under execution, or (ii) providing for any stay of execution, exemption from civil process, or extension of time for payment.
Maker agrees that any real estate that may be levied upon pursuant to a judgment obtained by virtue hereof or any writ of execution issued
hereon, may be sold upon any such writ in whole or in part in any order desired by Payee.
9. Unconditional
Liability. Maker hereby waives all notices in connection with the delivery, acceptance, performance, default, or enforcement of the
payment of this Note, and agrees that Maker’s liability shall be unconditional, without regard to the liability of any other party,
and shall not be affected in any manner by any indulgence, extension of time, renewal, waiver or modification granted or consented to
by Payee. Maker consents to any and all extensions of time, renewals, waivers, or modifications that may be granted by Payee with respect
to the payment or other provisions of this Note. Maker agrees that additional makers, endorsers, guarantors, or sureties may become parties
hereto without either any Notice to Maker or any bearing on Maker’s liability hereunder.
10. Notices. All notices, requests, consents, claims, demands, waivers, and other communications hereunder (each, a “Notice”)
shall be in writing and addressed to the parties at the addresses set forth on the first page of this Agreement (or to such other address
that may be designated by the receiving party from time to time in accordance with this Section 9). A Notice shall be deemed to
have been given (a) when delivered by hand (with written confirmation of receipt); (b) when received by the addressee if sent by a nationally
recognized overnight courier (receipt requested); (c) on the date sent by facsimile or email (with confirmation of transmission) if sent
during normal business hours of the recipient, and on the next business day if sent after normal business hours of the recipient; or
(d) on the third day after the date mailed, by certified or registered mail (in each case, return receipt requested, postage pre-paid).
.
11. Construction. THIS
NOTE SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF NEW YORK, WITHOUT REGARD TO CONFLICT OF LAW PROVISIONS THEREOF.
12. Severability.
Any provision contained in this Note which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such
prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.
13. Trust
Waiver. Notwithstanding anything herein to the contrary, Payee hereby waives any and all right, title, interest or claim of any kind
(each, a “Claim”) in or to any distribution of or from the trust account to be established (the “Trust Account”),
in which the proceeds of both the (a) IPO (including the deferred underwriters discounts and commissions) and (b) sale of the warrants
to be issued in a private placement to occur at the closing of the IPO are to be deposited, as described in greater detail in the Registration
Statement on Form S-1 and prospectus to be filed with the Securities and Exchange Commission in connection with the IPO. Payee hereby
agrees not to seek recourse, reimbursement, payment or satisfaction for any Claim against the Trust Account for any reason whatsoever.
14. Amendment;
Waiver. Any amendment hereto or waiver of any provision hereof may be made with, and only with, the written consent of both Maker
and Payee.
15. Assignment.
No assignment or transfer of this Note or any rights or obligations hereunder may be made by any party hereto (by operation of law or
otherwise) without the prior written consent of the other party hereto. Any attempted assignment without the required consent shall be
void.
[Signature page follows]
IN WITNESS WHEREOF,
Maker, intending to be legally bound hereby, has caused this Note to be duly executed by the undersigned as of the day and year first
above written.
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EMERALD ESG ACQUISITION CORP.
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By:
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/s/ Betsy Cohen
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Name: Betsy Cohen
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Title: Chairman of the Board
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[Signature Page to Promissory
Note]
Exhibit 10.8
FTAC EMERALD ACQUISITION CORP.
2929 Arch Street, Suite 1703
Philadelphia, PA 19104
, 2021
Emerald ESG Sponsor, LLC
2929 Arch Street, Suite 1703
Philadelphia, PA 19104
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Re:
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Administrative Services Agreement
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Gentlemen:
This letter agreement by and
between FTAC Emerald Acquisition Corp. (the “Company”) and Emerald ESG Sponsor, LLC (“Sponsor”), dated as of the
date hereof, will confirm our agreement that, commencing on the date the securities of the Company are first listed on the Nasdaq Global
Market (the “Listing Date”), pursuant to a Registration Statement on Form S-1 and prospectus filed with the Securities
and Exchange Commission (the “Registration Statement”) and continuing until the earlier of the consummation by the Company
of an initial business combination or the Company’s liquidation (in each case as described in the Registration Statement) (such
earlier date hereinafter referred to as the “Termination Date”):
(i) Sponsor or one of
its affiliates shall make available to the Company, at 2929 Arch Street, Philadelphia, PA (or any successor location of Sponsor or its
affiliates), certain office space, administrative and shared personnel support services as may be reasonably requested by the Company.
In exchange therefor, the Company shall pay Sponsor the sum of $30,000 per month on the Listing Date and continuing monthly thereafter
until the Termination Date; and
(ii) Sponsor hereby irrevocably
waives any and all right, title, interest, causes of action and claims of any kind (each, a “Claim”) in or to, and any and
all right to seek payment of any amounts due to it out of, the trust account established for the benefit of the public stockholders of
the Company and into which substantially all of the proceeds of the Company’s initial public offering will be deposited (the “Trust
Account”), and hereby irrevocably waives any Claim it may have in the future as a result of, or arising out of, this letter agreement,
which Claim would reduce, encumber or otherwise adversely affect the Trust Account or any monies or other assets in the Trust Account,
and further agrees not to seek recourse, reimbursement, payment or satisfaction of any Claim against the Trust Account or any monies or
other assets in the Trust Account for any reason whatsoever.
This letter agreement may
not be amended, modified or waived as to any particular provision, except by a written instrument executed by the parties hereto.
No party hereto may assign
either this letter agreement or any of its rights, interests, or obligations hereunder without the prior written approval of the other
party. Any purported assignment in violation of this paragraph shall be void and ineffectual and shall not operate to transfer or assign
any interest or title to the purported assignee.
This letter agreement, the
entire relationship of the parties hereto, and any litigation between the parties (whether grounded in contract, tort, statute, law or
equity) shall be governed by, construed in accordance with, and interpreted pursuant to the laws of the Commonwealth of Pennsylvania,
without giving effect to its choice of laws principles.
[Signature pages follows]
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Very truly yours,
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FTAC EMERALD ACQUISITION CORP.
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By:
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Name:
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Bracebridge H. Young, Jr.
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Title:
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President and Chief Executive Officer
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[Signature Page to Administrative Services
Agreement]
AGREED TO AND ACCEPTED BY:
EMERALD ESG SPONSOR, LLC
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By:
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Name:
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Betsy Cohen
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Title:
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Manager
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[Signature Page to Administrative Services
Agreement]
Exhibit 14.1
FORM OF
CODE OF BUSINESS CONDUCT AND ETHICS
OF
FTAC EMERALD ACQUISITION CORP.
The Board of Directors (the
“Board”) of FTAC Emerald Acquisition Corp. has adopted this code of business conduct and ethics (this “Code”),
as amended from time to time by the Board and which is applicable to all of the Company’s directors, officers and employees (to
the extent that employees are hired in the future) to:
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promote honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;
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promote the full, fair, accurate, timely and understandable disclosure in reports and documents that the Company files with, or submits to, the Securities and Exchange Commission (the “SEC”), as well as in other public communications made by or on behalf of the Company;
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promote compliance with applicable governmental laws, rules and regulations;
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require prompt internal reporting of breaches of, and accountability for adherence to, this Code.
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This Code may be amended and
modified by the Board. In this Code, references to the “Company” mean FTAC Emerald Acquisition Corp. and, in appropriate
context, the Company’s subsidiaries, if any.
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2.
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Honest, Ethical and Fair Conduct
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Each person owes a duty to
the Company to act with integrity. Integrity requires, among other things, being honest, fair and candid. Deceit, dishonesty and subordination
of principle are inconsistent with integrity. Service to the Company should never be subordinated to personal gain and advantage.
Each person must:
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Act with integrity, including being honest and candid while still maintaining the confidentiality of the Company’s information where required or when in the Company’s interests;
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Observe all applicable governmental laws, rules and regulations;
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Comply with the requirements of applicable accounting and auditing standards, as well as Company policies, in order to maintain a high standard of accuracy and completeness in the Company’s financial records and other business-related information and data;
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Adhere to a high standard of business ethics and not seek competitive advantage through unlawful or unethical business practices;
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Deal fairly with the Company’s customers, suppliers, competitors and employees;
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Refrain from taking advantage of anyone through manipulation, concealment, abuse of privileged information, misrepresentation of material facts or any other unfair-dealing practice;
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Protect the assets of the Company and ensure their proper use;
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Until the earliest of (i) the Company’s initial business combination (as such is defined in the Company’s initial registration statement filed with the SEC), (ii) liquidation, or (iii) such time as such person ceases to be an officer or director of the Company, to first present to the Company for its consideration, prior to presentation to any other entity, any business opportunity suitable for the Company, subject to the Company’s certificate of incorporation in effect from time to time and to any other fiduciary or contractual obligations such officer or director may have; and
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Avoid conflicts of interest, wherever possible, except as may be allowed under guidelines or resolutions approved by the Board (or the appropriate committee of the Board) or as disclosed in the Company’s public filings with the SEC. Anything that would be a conflict for a person subject to this Code also will be a conflict for a member of his or her immediate family or any other close relative. Examples of conflict of interest situations include, but are not limited to, the following:
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any significant ownership interest in any supplier or customer;
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any consulting or employment relationship with any supplier or customer;
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the receipt of any money, non-nominal gifts or excessive entertainment from any entity with which the Company has current or prospective business dealings;
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selling anything to the Company or buying anything from the Company, except on the same terms and conditions as comparable officers or directors are permitted to so purchase or sell;
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any other financial transaction, arrangement or relationship (including any indebtedness or guarantee of indebtedness) involving the Company; and
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any other circumstance, event, relationship or situation in which the personal interest of a person subject to this Code interferes — or even appears to interfere — with the interests of the Company as a whole.
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The Company strives to ensure
that the contents of and the disclosures in the reports and documents that the Company files with the SEC and other public communications
shall be full, fair, accurate, timely and understandable in accordance with applicable disclosure standards, including standards of materiality,
where appropriate. Each person must:
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not knowingly misrepresent, or cause others to misrepresent, facts about the Company to others, whether within or outside the Company, including to the Company’s independent registered public accountants, governmental regulators, self-regulating organizations and other governmental officials, as appropriate; and
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●
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in relation to his or her area of responsibility, properly review and critically analyze proposed disclosure for accuracy and completeness.
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In addition to the foregoing,
the Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”) of the Company and each
subsidiary of the Company (or persons performing similar functions), and each other person that typically is involved in the financial
reporting of the Company must familiarize himself or herself with the disclosure requirements applicable to the Company as well as the
business and financial operations of the Company.
Each person must promptly
bring to the attention of the Chairman of the Board any information he or she may have concerning (a) significant deficiencies in
the design or operation of internal and/or disclosure controls that could adversely affect the Company’s ability to record, process,
summarize and report financial data or (b) any fraud that involves management or other employees who have a significant role in the
Company’s financial reporting, disclosures or internal controls.
It is the Company’s
obligation and policy to comply with all applicable governmental laws, rules and regulations. All directors, officers and employees
of the Company are expected to understand, respect and comply with all of the laws, regulations, policies and procedures that apply to
them in their positions with the Company. Employees are responsible for talking to their supervisors to determine which laws, regulations
and Company policies apply to their position and what training is necessary to understand and comply with them.
Directors, officers and employees
are directed to specific policies and procedures available to persons they supervise.
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5.
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Reporting and Accountability
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The Board is responsible for
applying this Code to specific situations in which questions are presented to it and has the authority to interpret this Code in any particular
situation. Any person who becomes aware of any existing or potential breach of this Code is required to notify the Chairman of the Board
promptly. Failure to do so is, in and of itself, a breach of this Code.
Specifically, each person
must:
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notify the Chairman of the Board promptly of any existing or potential violation of this Code; and
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not retaliate against any other person for reports of potential violations that are made in good faith.
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The Company will follow the following
procedures in investigating and enforcing this Code and in reporting on this Code:
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The Board will take all appropriate action to investigate any breaches reported to it.
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Upon determination by the Board that a breach has occurred, the Board (by majority decision) will take or authorize such disciplinary or preventive action as it deems appropriate, after consultation with the Company’s internal or external legal counsel, up to and including dismissal or, in the event of criminal or other serious violations of law, notification of the SEC or other appropriate law enforcement authorities.
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No person following the above
procedure shall, as a result of following such procedure, be subject by the Company or any officer or employee thereof to discharge, demotion
suspension, threat, harassment or, in any manner, discrimination against such person in terms and conditions of employment.
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6.
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Waivers and Amendments
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Any waiver (defined below)
or an implicit waiver (defined below) from a provision of this Code for the principal executive officer, principal financial officer,
principal accounting officer or controller, and persons performing similar functions or any amendment (as defined below) to this Code
is required to be disclosed in a current report on Form 8-K filed with the SEC. In lieu of filing a current report on Form 8-K
to report any such waivers or amendments, the Company may provide such information on a website, in the event that it establishes one
in the future, and if it keeps such information on the website for at least 12 months and discloses the website address as well as any
intention to provide such disclosures in this manner in its most recently filed Annual Report on Form 10-K.
A “waiver” means
the approval by the Board of a material departure from a provision of this Code. An “implicit waiver” means the Company’s
failure to take action within a reasonable period of time regarding a material departure from a provision of this Code that has been made
known to an executive officer of the Company. An “amendment” means any amendment to this Code other than minor technical,
administrative or other non-substantive amendments hereto.
All persons should note that
it is not the Company’s intention to grant or to permit waivers from the requirements of this Code. The Company expects full compliance
with this Code.
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7.
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Insider Information and Securities Trading
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No person who is aware of
material, non-public information about the Company may, directly or indirectly, buy or sell the Company’s securities or engage in
another action to take advantage of such information. It is also against the law to trade or to “tip” others who might make
an investment decision based on material, non-public information about the Company. For example, using material, non-public information
to buy or sell the Company’s securities, options in the Company’s securities or the securities of any Company supplier, customer
or competitor is prohibited. The consequences of insider trading violations can be severe. These rules also apply to the use of material,
nonpublic information about other companies (including, for example, our customers, competitors and potential business partners). In addition
to directors, officers or employees, these rules apply to each such person’s spouse, children, parents and siblings, as well
as any other family members living in such person’s home.
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8.
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Financial Statements and Other Records
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All of the Company’s
books, records, accounts and financial statements must be maintained in reasonable detail, must appropriately reflect the Company’s
transactions and must both conform to applicable legal requirements and to the Company’s system of internal controls. Unrecorded
or “off the books” funds or assets should not be maintained unless permitted by applicable law or regulation.
Records should always be retained
or destroyed according to the Company’s record retention policies. In accordance with those policies, in the event of litigation
or governmental investigation, please consult the Board or the Company’s internal or external legal counsel.
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9.
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Improper Influence on Conduct of Audits
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No director or officer, or
any other person acting under the direction thereof, shall directly or indirectly take any action to coerce, manipulate, mislead or fraudulently
influence any public or certified public accountant engaged in the performance of an audit or review of the financial statements of the
Company or take any action that such person knows or should know that if successful could result in rendering the Company’s financial
statements materially misleading. Any person who believes such improper influence is being exerted should report such action to such person’s
supervisor, or if that is impractical under the circumstances, to any of our directors.
Types of conduct that could
constitute improper influence include, but are not limited to, directly or indirectly:
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Offering or paying bribes or other financial incentives, including future employment or contracts for non-audit services;
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Providing an auditor with an inaccurate or misleading legal analysis;
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Threatening to cancel or canceling existing non-audit or audit engagements if the auditor objects to the Company’s accounting;
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Seeking to have a partner removed from the audit engagement because the partner objects to the Company’s accounting;
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Making physical threats.
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The Company complies with
the anti-corruption laws of the countries in which it does business, including the U.S. Foreign Corrupt Practices Act. To the extent prohibited
by applicable law, directors, officers and employees will not directly or indirectly give anything of value to government officials, including
employees of state-owned enterprises or foreign political candidates. These requirements apply both to Company employees and agents, such
as third party sales representatives, no matter where they are doing business. If you are authorized to engage agents, you are responsible
for ensuring they are reputable and for obtaining a written agreement to uphold the Company’s standards in this area.
Violation of this Code is
grounds for disciplinary action up to and including termination of employment. Such action is in addition to any civil or criminal liability
which might be imposed by any court or regulatory agency.
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12.
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Other Policies and Procedures
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The requirements of any other
policy or procedure set out by the Company in writing or made generally known to employees, officers or directors of the Company prior
to the date hereof or hereafter are separate requirements and remain in full force and effect.
All inquiries and questions
in relation to this Code or its applicability to particular people or situations should be addressed to the Company’s Secretary,
or such other compliance officer as shall be designated from time to time by the Company.
PROVISIONS FOR
CHIEF EXECUTIVE OFFICER AND SENIOR FINANCIAL OFFICERS
The CEO and all senior financial
officers, including the CFO and principal accounting officer or controller, are bound by the provisions set forth herein relating to ethical
conduct, conflicts of interest, and compliance with law. In addition to this Code, the CEO and senior financial officers are subject to
the following additional specific policies:
1. Act with honesty and integrity,
avoiding actual or apparent conflicts between personal, private interests and the interests of the Company, including receiving improper
personal benefits as a result of his or her position.
2. Disclose to the CEO and
the Board any material transaction or relationship that reasonably could be expected to give rise to a conflict of interest.
3. Perform responsibilities
with a view to causing periodic reports and documents filed with or submitted to the SEC and all other public communications made by the
Company to contain information that is accurate, complete, fair, objective, relevant, timely and understandable, including full review
of all annual and quarterly reports.
4. Comply with laws, rules and
regulations of federal, state and local governments applicable to the Company and with the rules and regulations of private and public
regulatory agencies having jurisdiction over the Company.
5. Act in good faith, responsibly,
with due care, competence and diligence, without misrepresenting or omitting material facts or allowing independent judgment to be compromised
or subordinated.
6. Respect the confidentiality
of information acquired in the course of performance of his or her responsibilities except when authorized or otherwise legally obligated
to disclose any such information; not use confidential information acquired in the course of performing his or her responsibilities for
personal advantage.
7. Share knowledge and maintain
skills important and relevant to the needs of the Company, its stockholders and other constituencies and the general public.
8. Proactively promote ethical
behavior among subordinates and peers in his or her work environment and community.
9. Use and control all corporate
assets and resources employed by or entrusted to him or her in a responsible manner.
10. Not use corporate information,
corporate assets, corporate opportunities or his or her position with the Company for personal gain; not compete directly or indirectly
with the Company, subject to the Company’s certificate of incorporation in effect from time to time and to any other fiduciary or
contractual obligations such officer may have.
11. Comply in all respects
with this Code.
12. Advance the Company’s
legitimate interests when the opportunity arises.
The Board will investigate
any reported violations and will oversee an appropriate response, including corrective action and preventative measures. Any officer who
violates this Code will face appropriate, case specific disciplinary action, which may include demotion or discharge.
Any request for a waiver of
any provision of this Code must be in writing and addressed to the Chairman of the Board. Any waiver of this Code will be disclosed as
provided in Section 6 of this Code.
It is the policy of the Company
that each officer covered by this Code shall acknowledge and certify to the foregoing annually and file a copy of such certification with
the Chairman of the Board.
OFFICER’S CERTIFICATION
I have read and understand
the foregoing Code. I hereby certify that I am in compliance with the foregoing Code and I will comply with the Code in the future. I
understand that any violation of the Code will subject me to appropriate disciplinary action, which may include demotion or discharge.
Exhibit 23.1
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM
We hereby consent to the use in the Prospectus
constituting a part of this Registration Statement on Form S-1 of our report dated November 19, 2021, relating to the financial statements
of FTAC Emerald Acquisition Corp., which is contained in that Prospectus. We also consent to the reference to our Firm under the caption
“Experts” in the Prospectus.
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/s/ WithumSmith+Brown, PC
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New York, New York
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November 19, 2021
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Exhibit 99.1
CHARTER OF THE AUDIT COMMITTEE
OF THE BOARD OF DIRECTORS OF
FTAC EMERALD ACQUISITION CORP.
I. PURPOSE OF THE COMMITTEE
The purpose of the Audit Committee
(the “Committee”) of the Board of Directors (the “Board”) of FTAC Emerald Acquisition Corp., a Delaware
corporation (the “Company”) is to oversee the accounting and financial reporting processes of the Company and its subsidiaries
and the audits of the financial statements of the Company.
II. COMPOSITION OF THE COMMITTEE
The Committee shall consist
of three or more directors. Each member of the Committee shall be qualified to serve on the Committee pursuant to the requirements of
The Nasdaq Stock Market (“NASDAQ”), and any additional requirements that the Board deems appropriate. Each Committee
member must satisfy, as determined from time to time by the Board, the independence requirements of NASDAQ and the more rigorous independence
rules for members of the Audit Committee issued by the U.S. Securities and Exchange Commission (the “SEC”), subject
to any available exception.
The chairperson of the Committee
shall be designated by the Board, provided that if the Board does not so designate a chairperson, the members of the Committee, by a majority
vote, may designate a chairperson.
Any vacancy on the Committee
shall be filled by majority vote of the Board. No member of the Committee shall be removed except by majority vote of the Board.
Each member of the Committee
shall be financially literate and must be able to read and understand fundamental financial statements, including the Company’s
balance sheet, income statement and cash flow statement. In addition, at least one member of the Committee must be designated by the Board
to be the “audit committee financial expert,” as defined by the SEC pursuant to the U.S. Sarbanes-Oxley Act of 2002 (the “Act”).
III. MEETINGS OF THE COMMITTEE
The Committee shall meet as
often as it determines necessary to carry out its duties and responsibilities, but no less frequently than once every fiscal quarter.
The Committee, in its discretion, may ask members of management or others to attend its meetings (or portions thereof) and to provide
pertinent information as necessary. A majority of the members of the Committee present in person or by means of a conference telephone
or other communications equipment by means of which all persons participating in the meeting can hear each other shall constitute a quorum.
The Committee shall maintain
minutes of its meetings and records relating to those meetings. The provisions of the Company’s certificate of incorporation and
bylaws (as amended from time to time) relating to meetings of the Board shall apply equally to meetings of the Committee unless otherwise
stated herein.
IV. DUTIES AND RESPONSIBILITIES OF THE COMMITTEE
In carrying out its duties
and responsibilities, the Committee’s policies and procedures should remain flexible, so that it may be in a position to best address,
react or respond to changing circumstances or conditions. The following duties and responsibilities are within the authority of the Committee
and the Committee shall, consistent with and subject to applicable law and rules and regulations promulgated by the SEC, NASDAQ,
or any other applicable regulatory authority:
Selection, Evaluation, and Oversight of
the Auditors
(a) Be directly responsible
for the appointment, compensation, retention and oversight of the work of any registered public accounting firm engaged for the purpose
of preparing or issuing an audit report or performing other audit, review or attest services for the Company, and each such registered
public accounting firm must report directly to the Committee (the registered public accounting firm engaged for the purpose of preparing
or issuing an audit report for inclusion in the Company’s Annual Report on Form 10-K is referred to herein as the “independent
auditors”);
(b) Review and, in its
sole discretion, approve in advance the Company’s independent auditors’ annual engagement letter, including the proposed fees
contained therein, as well as all audit and, as provided in the Act and the SEC rules and regulations promulgated thereunder, all
permitted non-audit engagements and relationships between the Company and such independent auditors (which approval should be made after
receiving input from the Company’s management, if desired). Approval of audit and permitted non-audit services will be made by the
Committee or by one or more members of the Committee as shall be designated by the Committee/the chairperson of the Committee and the
persons granting such approval shall report such approval to the Committee at the next scheduled meeting;
(c) Review the performance
of the Company’s independent auditors, including the lead partner of the independent auditors, and, in its sole discretion (subject,
if applicable, to shareholder ratification), make decisions regarding the replacement or termination of the independent auditors when
circumstances warrant;
(d) Evaluate the independence
of the Company’s independent auditors by, among other things:
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(i)
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obtaining and reviewing from the Company’s independent auditors a formal written statement delineating all relationships between the independent auditors and the Company, consistent with Independence Standards Board Standard 1;
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(ii)
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actively engaging in a dialogue with the Company’s independent auditors with respect to any disclosed relationships or services that may impact the objectivity and independence of the auditors;
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(iii)
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setting clear hiring policies for employees or former employees of the Company’s independent auditors;
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(iv)
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taking, or recommending that the Board take, appropriate action to oversee the independence of the Company’s independent auditors;
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(v)
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monitoring compliance by the Company’s independent auditors with the audit partner rotation requirements contained in the Act and the rules and regulations promulgated by the SEC thereunder;
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(vi)
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monitoring compliance by the Company of the employee conflict of interest requirements contained in the Act and the rules and regulations promulgated by the SEC thereunder; and
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(vii)
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engaging in a dialogue with the independent auditors to confirm that audit partner compensation is consistent with applicable SEC rules;
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Oversight of Annual Audit and Quarterly
Reviews
(e) Review and discuss
with the independent auditors their annual audit plan, including the timing and scope of audit activities, and monitor such plan’s
progress and results during the year;
(f) Review with management
and the Company’s independent auditors the following information which is required to be reported by the independent auditor:
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(i)
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all critical accounting policies and practices to be used;
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(ii)
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all alternative treatments of financial information that have been discussed by the independent auditors and management, ramifications of the use of such alternative disclosures and treatments, and the treatment preferred by the independent auditors;
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(iii)
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all other material written communications between the independent auditors and management, such as any management letter and any schedule of unadjusted differences; and
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(iv)
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any material financial arrangements of the Company which do not appear on the financial statements of the Company;
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(g) Resolve all disagreements
between the Company’s independent auditors and management regarding financial reporting;
Oversight of Financial Reporting Process
and Internal Controls
(h) Review:
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(i)
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the adequacy and effectiveness of the Company’s accounting and internal control policies and procedures on a regular basis, including the responsibilities, budget, compensation and staffing of the Company’s internal audit function, through inquiry and discussions with the Company’s independent auditors and management; and
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(ii)
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the Committee’s level of involvement and interaction with the Company’s internal audit function, including the Committee’s line of authority and role in appointing and compensating employees in the internal audit function;
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(i) Review with the chief
executive officer, chief financial officer and independent auditors, periodically, the following:
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(i)
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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 Company’s ability to record, process, summarize and report financial information; and
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(ii)
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any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s internal control over financial reporting;
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(j) Discuss guidelines
and policies governing the process by which senior management of the Company assess and manage the Company’s exposure to risk, as
well as the Company’s major financial risk exposures and the steps management has taken to monitor and control such exposures;
(k) Review with management
the progress and results of all internal audit projects, and, when deemed necessary or appropriate by the Committee, assign additional
internal audit projects to appropriate personnel;
(l) Receive periodic
reports from the Company’s independent auditors, management and directors of the Company’s internal auditing department to
assess the impact on the Company of significant accounting or financial reporting developments that may have a bearing on the Company;
(m) Review and discuss
with the independent auditors the results of the year-end audit of the Company, including any comments or recommendations of the Company’s
independent auditors and, based on such review and discussions and on such other considerations as it determines appropriate, recommend
to the Board whether the Company’s financial statements should be included in the Annual Report on Form 10-K;
(n) Establish and maintain
free and open means of communication between and among the Committee, the Company’s independent auditors and management, including
providing such parties with appropriate opportunities to meet separately and privately with the Committee on a periodic basis;
(o) Review the type and
presentation of information to be included in the Company’s earnings press releases (especially the use of “pro forma”
or “adjusted” information not prepared in compliance with generally accepted accounting principles), as well as financial
information and earnings guidance provided by the Company to analysts and rating agencies (which review may be done generally (i.e., discussion
of the types of information to be disclosed and type of presentations to be made), and the Committee need not discuss in advance each
earnings release or each instance in which the Company may provide earnings guidance);
Miscellaneous
(p) Establish and implement
policies and procedures for the Committee’s review and approval or disapproval of proposed transactions or courses of dealings with
respect to which executive officers or directors or members of their immediate families have an interest (including all transactions required
to be disclosed by Item 404(a) of Regulation S-K);
(q) Meet periodically
with outside counsel when appropriate, to review legal and regulatory matters, including (i) any matters that may have a material
impact on the financial statements of the Company and (ii) any matters involving potential or ongoing material violations of law
or breaches of fiduciary duty by the Company or any of its directors, officers, employees, or agents or breaches of fiduciary duty to
the Company;
(r) Prepare the report
required by the rules of the SEC to be included in the Company’s annual proxy statement;
(s) Review the Company’s
policies relating to the ethical handling of conflicts of interest and review past or proposed transactions between the Company and members
of management as well as policies and procedures with respect to officers’ expense accounts and perquisites, including the use of
corporate assets. The Committee shall consider the results of any review of these policies and procedures by the Company’s independent
auditors;
(t) Review and approve
in advance any services provided by the Company’s independent auditors to the Company’s executive officers or members of their
immediate family;
(u) Review the Company’s
program to monitor compliance with the Company’s Code of Ethics;
(v) Establish procedures
for (i) the receipt, retention and treatment of complaints received by the Company regarding accounting, internal accounting controls
or auditing matters, and (ii) the confidential, anonymous submission by employees of the Company of concerns regarding questionable
accounting or auditing matters;
(w) Establish procedures
for the receipt, retention and treatment of reports of evidence of a material violation made by attorneys appearing and practicing before
the SEC in the representation of the Company or any of its subsidiaries, or reports made by the Company’s chief executive officer
in relation thereto;
(x) Approve reimbursement
of expenses incurred by management in connection with certain activities conducted on the Company’s behalf, such as identifying
potential target businesses;
(y) Secure independent
expert advice to the extent the Committee determines it to be appropriate, including retaining, with or without Board approval, independent
counsel, accountants, consultants or others, to assist the Committee in fulfilling its duties and responsibilities, the cost of such independent
expert advisors to be borne by the Company;
(z) Review and assess
the adequacy of this Charter on an annual basis; and
(aa) Perform such additional
activities, and consider such other matters, within the scope of its responsibilities, as the Committee or the Board deems necessary or
appropriate.
V. INVESTIGATIONS AND STUDIES; OUTSIDE ADVISERS
The Committee may conduct
or authorize investigations into or studies of matters within the Committee’s scope of responsibilities, and may retain, at the
Company’s expense, such independent counsel or other consultants or advisers as it deems necessary.
* * *
While the Committee has the
duties and responsibilities set forth in this Charter, the Committee is not responsible for preparing or certifying the financial statements,
for planning or conducting the audit, or for determining whether the Company’s financial statements are complete and accurate and
are in accordance with generally accepted accounting principles.
In fulfilling their responsibilities
hereunder, it is recognized that members of the Committee are not full-time employees of the Company, it is not the duty or responsibility
of the Committee or its members to conduct “field work” or other types of auditing or accounting reviews or procedures or
to set auditor independence standards, and each member of the Committee shall be entitled to rely on (i) the integrity of those persons
and organizations within and outside the Company from which it receives information and (ii) the accuracy of the financial and other
information provided to the Committee absent actual knowledge to the contrary.
Nothing contained in this
Charter is intended to create, or should be construed as creating, any responsibility or liability of the members of the Committee, except
to the extent otherwise provided under applicable U.S. federal or state law.
Exhibit 99.2
CHARTER OF THE COMPENSATION COMMITTEE
OF THE BOARD OF DIRECTORS OF
FTAC EMERALD ACQUISITION CORP.
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I.
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PURPOSE OF THE COMMITTEE
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The purposes of the Compensation Committee (the
“Committee”) of the Board of Directors (the “Board”) of FTAC Emerald Acquisition Corp. (the “Company”)
shall be to oversee the Company’s compensation and employee benefit plans and practices, including its executive compensation plans,
and its incentive-compensation and equity-based plans; to review and discuss with management the Company’s compensation discussion
and analysis (“CD&A”) to be included in the Company’s annual proxy statement or annual report on Form 10-K
filed with the Securities and Exchange Commission (the “SEC”); to prepare the Compensation Committee Report as required
by the rules of the SEC; and to perform such further functions as may be consistent with this Charter or assigned by applicable law,
the Company’s charter or bylaws or the Board.
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II.
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COMPOSITION OF THE COMMITTEE
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The Committee shall consist of two or more directors
as determined from time to time by the Board. Each member of the Committee shall be qualified to serve on the Committee pursuant to the
requirements of The Nasdaq Stock Market (“NASDAQ”), and any additional requirements that the Board deems appropriate.
Members of the Committee shall also qualify as ”non-employee directors” within the meaning of Rule 16b-3 promulgated
under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and “outside directors” within
the meaning of Section 162(m) of the Internal Revenue Code of 1986, as amended. The chairperson of the Committee shall be designated
by the Board, provided that if the Board does not so designate a chairperson, the members of the Committee, by majority vote, may
designate a chairperson. Each Committee member shall have one vote. Any vacancy on the Committee shall be filled by majority vote of the
Board. No member of the Committee shall be removed except by majority vote of the Board.
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III.
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MEETINGS AND PROCEDURES OF THE COMMITTEE
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The Committee shall meet as often as it determines
necessary to carry out its duties and responsibilities, but no less than once annually. The Committee, in its discretion, may ask members
of management or others to attend its meetings (or portions thereof) and to provide pertinent information as necessary, provided,
that the Chief Executive Officer of the Company may not be present during any portion of a Committee meeting in which deliberation or
any vote regarding his or her compensation occurs.
A majority of the members of the Committee present
in person or by means of a conference telephone or other communications equipment by means of which all persons participating in the meeting
can hear each other shall constitute a quorum.
The Committee shall maintain minutes of its meetings
and records relating to those meetings and shall report regularly to the Board on its activities, as appropriate.
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IV.
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DUTIES AND RESPONSIBILITIES OF THE COMMITTEE
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A.
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Executive Compensation
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The Committee shall have the following duties
and responsibilities with respect to the Company’s executive compensation plans:
(a) To review at least
annually the goals and objectives of the Company’s executive compensation plans, and amend, or recommend that the Board amend, these
goals and objectives if the Committee deems it appropriate.
(b) To review at least
annually the Company’s executive compensation policies and plans in light of the Company’s goals and objectives with respect
to such plans, and, if the Committee deems it appropriate, adopt, or recommend to the Board the adoption of, new, or the amendment of
existing, executive compensation plans.
(c) To evaluate annually
the performance of the Chief Executive Officer in light of the goals and objectives of the Company’s executive compensation plans,
and, either as a Committee or together with the other independent directors (as directed by the Board), determine and approve the Chief
Executive Officer’s compensation level based on this evaluation. In determining the long-term incentive component of the Chief Executive
Officer’s compensation, the Committee shall consider factors as it determines relevant, which may include, for example, the Company’s
performance and relative stockholder return, the value of similar awards to chief executive officers of comparable companies, and the
awards given to the Chief Executive Officer of the Company in past years. The Committee may discuss the Chief Executive Officer’s
compensation with the Board if it chooses to do so.
(d) To evaluate annually
the performance of the other executive officers of the Company in light of the goals and objectives of the Company’s executive compensation
plans, and either as a Committee or together with the other independent directors (as directed by the Board), determine and approve the
compensation of such other executive officers. To the extent that long-term incentive compensation is a component of such executive officer’s
compensation, the Committee shall consider all relevant factors in determining the appropriate level of such compensation, including the
factors applicable with respect to the Chief Executive Officer.
(e) To evaluate annually
the appropriate level of compensation for Board and Committee service by non-employee directors.
(f) To review and recommend
to the Board the adoption of or changes to the compensation of the Company’s independent directors.
(g) To review and approve
any severance or termination arrangements to be made with any executive officer of the Company.
(h) To implement and
administer the Company’s incentive compensation equity-based remuneration plans and perform such other duties and responsibilities
as may be assigned to the Board or the Committee under the terms of any executive compensation plan.
(i) To review perquisites
or other personal benefits to the Company’s executive officers and directors and recommend any changes to the Board.
(j) To consider the results
of the most recent stockholder advisory vote on executive compensation as required by Section 14A of the Exchange Act, and, to the
extent the Committee determines it appropriate to do so, take such results into consideration in connection with the review and approval
of executive officer compensation.
(k) To review and discuss
with management the Company’s CD&A, and based on that review and discussion, to recommend to the Board that the CD&A be
included in the Company’s annual proxy statement or annual report on Form 10-K.
(l) To review compensation
arrangements for the Company’s employees to evaluate whether incentive and other forms of pay encourage unnecessary or excessive
risk taking, and review and discuss, at least annually, the relationship between risk management policies and practices, corporate strategy
and the Company’s compensation arrangements.
(m) To the extent it
deems necessary, review and approve the terms of any compensation “clawback” or similar policy or agreement between the Company
and the Company’s executive officers or other employees subject to Section 16 of the Exchange Act.
(n) To review, recommend
to the Board, and administer all plans that require “disinterested administration” under Rule 16b-3 under the Exchange
Act.
(o) To prepare the Compensation
Committee Report in accordance with the rules and regulations of the SEC for inclusion in the Company’s annual proxy statement
or annual report on Form 10-K and assist management in complying with proxy statement and annual report disclosure requirements.
(p) To retain (at the
Company’s expense) outside consultants and obtain assistance from members of management as the Committee deems appropriate in the
exercise of its authority.
(q) To perform such other
functions as assigned by law, the Company’s charter or bylaws or the Board.
(r) To make reports and
recommendations to the Board within the scope of its functions and advise the officers of the Company regarding various personnel matters
as may be raised with the Committee.
(s) To approve all special
perquisites, special cash payments and other special compensation and benefit arrangements for the Company’s executive officers.
Notwithstanding anything to the contrary in the
foregoing, the Committee shall have sole discretion and authority with respect to any action regarding compensation payable to the Chief
Executive Officer or other executive officers of the Company that the Committee intends to constitute “qualified performance-based
compensation” for purposes of section 162(m) of the Internal Revenue Code of 1986, as amended and the Treasury Regulations
promulgated thereunder.
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B.
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General Compensation and Employee Benefit Plans
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The Committee shall have the following duties
and responsibilities with respect to the Company’s general compensation and employee benefit plans, including incentive-compensation
and equity-based plans:
(a) To review at least
annually the goals and objectives of the Company’s general compensation plans and other employee benefit plans, including incentive-compensation
and equity-based plans, and amend, or recommend that the Board amend, these goals and objectives if the Committee deems it appropriate.
(b) To review at least
annually the Company’s general compensation plans and other employee benefit plans, including incentive-compensation and equity-based
plans, in light of the goals and objectives of these plans, and recommend that the Board amend these plans if the Committee deems it appropriate.
(c) To review all equity-compensation
plans to be submitted for stockholder approval under NASDAQ listing standards, and to review and, in the Committee’s sole discretion,
approve all equity-compensation plans that are exempt from such stockholder approval requirement.
(d) To approve all special
perquisites, special cash payments and other special compensation and benefit arrangements for the Company’s employees.
(e) To perform such duties
and responsibilities as may be assigned to the Board or the Committee under the terms of any compensation or other employee benefit plan,
including any incentive-compensation or equity-based plan.
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V.
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ROLE OF CHIEF EXECUTIVE OFFICER
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The Chief Executive Officer may make, and the
Committee may consider, recommendations to the Committee regarding the Company’s compensation and employee benefit plans and practices,
including its executive compensation plans, its incentive-compensation and equity-based plans with respect to executive officers (other
than the Chief Executive Officer) and the Company’s director compensation arrangements.
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VI.
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DELEGATION OF AUTHORITY
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The Committee may form subcommittees for any purpose
that the Committee deems appropriate and may delegate to such subcommittees such power and authority as the Committee deems appropriate;
provided, however, that no subcommittee shall consist of fewer than two members; and provided further that the Committee
shall not delegate to a subcommittee any power or authority required by any law, regulation or listing standard to be exercised by the
Committee as a whole.
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VII.
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EVALUATION OF THE COMMITTEE
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The Committee shall, no less frequently than annually,
evaluate its performance. In conducting this review, the Committee shall evaluate whether this Charter appropriately addresses the matters
that are or should be within its scope and shall recommend such changes as it deems necessary or appropriate. The Committee shall address
all matters that the Committee considers relevant to its performance, including at least the following: the adequacy, appropriateness
and quality of the information and recommendations presented by the Committee to the Board, the manner in which they were discussed or
debated, and whether the number and length of meetings of the Committee were adequate for the Committee to complete its work in a thorough
and thoughtful manner.
The Committee shall deliver to the Board a report,
which may be oral, setting forth the results of its evaluation, including any recommended amendments to this Charter and any recommended
changes to the Company’s or the Board’s policies or procedures.
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VIII.
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INVESTIGATIONS AND STUDIES; OUTSIDE ADVISERS
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The Committee may conduct or authorize investigations
into or studies of matters within the Committee’s scope of responsibilities, and may, in its sole discretion, retain or obtain the
advice of a compensation consultant, legal counsel or other adviser. The Committee shall be directly responsible for the appointment,
compensation and oversight of the work of any compensation consultant, legal counsel or other adviser retained by the Committee, the expense
of which shall be borne by the Company. The Committee may select a compensation consultant, legal counsel or other adviser to the Committee
only after taking into consideration the following:
(a) The provision of
other services to the Company by the person that employs the compensation consultant, legal counsel or other adviser;
(b) The amount of fees
received from the Company by the person that employs the compensation consultant, legal counsel or other adviser, as a percentage of the
total revenue of the person that employs the compensation consultant, legal counsel or other adviser;
(c) The policies and
procedures of the person that employs the compensation consultant, legal counsel or other adviser that are designed to prevent conflicts
of interest:
(d) Any business or personal
relationship of the compensation consultant, legal counsel or other adviser with a member of the Committee;
(e) Any stock of the
Company owned by the compensation consultant, legal counsel or other adviser; and
(f) Any business or personal
relationship of the compensation consultant, legal counsel, other adviser or the person employing the adviser with an executive officer
of the Company.
The Committee shall conduct the independence assessment
with respect to any compensation consultant, legal counsel or other adviser that provides advice to the Committee, other than: (i) in-house
legal counsel; and (ii) any compensation consultant, legal counsel or other adviser whose role is limited to the following activities
for which no disclosure would be required under Item 407(e)(3)(iii) of Regulation S-K: consulting on any broad-based plan that does
not discriminate in scope, terms, or operation, in favor of executive officers or directors of the Company, and that is available generally
to all salaried employees; or providing information that either is not customized for the Company or that is customized based on parameters
that are not developed by the compensation consultant, and about which the compensation consultant does not provide advice.
Nothing herein requires a compensation consultant,
legal counsel or other compensation adviser to be independent, only that the Committee consider the enumerated independence factors before
selecting or receiving advice from a compensation consultant, legal counsel or other compensation adviser. The Committee may select or
receive advice from any compensation consultant, legal counsel or other compensation adviser it prefers, including ones that are not independent,
after considering the six independence factors outlined above.
Nothing herein shall be construed: (1) to
require the Committee to implement or act consistently with the advice or recommendations of the compensation consultant, legal counsel
or other adviser to the Committee; or (2) to affect the ability or obligation of the Committee to exercise its own judgment in fulfillment
of its duties.
Any amendment or other modification of this Charter
shall be made and approved by the full Board.
If required by the rules of the SEC or NASDAQ,
this Charter, as amended from time to time, shall be made available to the public on the Company’s website.
* * *
While the members of the Committee have the duties
and responsibilities set forth in this Charter, nothing contained in this Charter is intended to create, or should be construed as creating,
any responsibility or liability of members of the Committee, except to the extent otherwise provided under applicable federal or state
law.
Exhibit 99.3
CONSENT OF LISA SHALETT
CONSENT TO BE NAMED AS
A DIRECTOR NOMINEE
Emerald ESG Acquisition
Corp. intends to file a Registration Statement on Form S-1 (together with any amendments or supplements thereto, the “Registration
Statement”) registering securities for issuance in its initial public offering. As required by Rule 438 under the Securities
Act of 1933, as amended, the undersigned hereby consents to being named in the Registration Statement as a Director Nominee. The undersigned
also consents to the filing of this consent as an exhibit to the Registration Statement and any amendments thereto.
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Dated: October 14, 2021
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Signature:
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/s/ Lisa Shalett
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By:
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Lisa Shalett
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Exhibit 99.4
CONSENT TO BE NAMED AS
A DIRECTOR NOMINEE
Emerald ESG Acquisition
Corp. intends to file a Registration Statement on Form S-1 (together with any amendments or supplements thereto, the “Registration
Statement”) registering securities for issuance in its initial public offering. As required by Rule 438 under the Securities
Act of 1933, as amended, the undersigned hereby consents to being named in the Registration Statement as a Director Nominee. The undersigned
also consents to the filing of this consent as an exhibit to the Registration Statement and any amendments thereto.
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Dated: November 12, 2021
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Signature:
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/s/ Andrew Hohns
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By:
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Andrew Hohns
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Exhibit 99.5
CONSENT TO BE NAMED AS
A DIRECTOR NOMINEE
Emerald ESG Acquisition
Corp. intends to file a Registration Statement on Form S-1 (together with any amendments or supplements thereto, the “Registration
Statement”) registering securities for issuance in its initial public offering. As required by Rule 438 under the Securities
Act of 1933, as amended, the undersigned hereby consents to being named in the Registration Statement as a Director Nominee. The undersigned
also consents to the filing of this consent as an exhibit to the Registration Statement and any amendments thereto.
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Dated: October 14, 2021
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Signature:
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/s/ Therese Rein
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By:
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Therese Rein
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Exhibit 99.6
CONSENT OF TENSIE WHELAN
CONSENT TO BE NAMED AS
A DIRECTOR NOMINEE
Emerald ESG Acquisition
Corp. intends to file a Registration Statement on Form S-1 (together with any amendments or supplements thereto, the “Registration
Statement”) registering securities for issuance in its initial public offering. As required by Rule 438 under the Securities
Act of 1933, as amended, the undersigned hereby consents to being named in the Registration Statement as a Director Nominee. The undersigned
also consents to the filing of this consent as an exhibit to the Registration Statement and any amendments thereto.
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Dated: October 14, 2021
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Signature:
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/s/ Tensie Whelan
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By:
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Tensie Whelan
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Exhibit 99.7
CONSENT TO BE NAMED AS
A DIRECTOR NOMINEE
Emerald ESG Acquisition
Corp. intends to file a Registration Statement on Form S-1 (together with any amendments or supplements thereto, the “Registration
Statement”) registering securities for issuance in its initial public offering. As required by Rule 438 under the Securities
Act of 1933, as amended, the undersigned hereby consents to being named in the Registration Statement as a Director Nominee. The undersigned
also consents to the filing of this consent as an exhibit to the Registration Statement and any amendments thereto.
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Dated: November 12, 2021
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Signature:
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/s/ Mark Tercek
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By:
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Mark Tercek
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