Item 1. Business.
Introduction
We
are a blank check company incorporated on February 3, 2021 as a Cayman Islands exempted company and formed for the purpose of effecting
a merger, amalgamation, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or
more businesses or entities.
In
February 2021, our Sponsor purchased 7,187,500 of the Company’s Class B ordinary shares (the “Founder Shares”) for
$25,000, or approximately $0.003 per share. In February 2021, we effected a share capitalization of 1,437,500 of our Class B ordinary
shares, resulting in our Sponsor holding an aggregate of 8,625,000 Founder Shares (up to 1,125,000 shares of which were subject to forfeiture
to the extent the underwriters of our Initial Public Offering did not exercise their over-allotment option). On July 19, 2021, our Sponsor
forfeited a total of 120,000 Founder Shares and we issued 40,000 Founder Shares to each of our independent directors. On July 27, 2021,
the underwriters purchased the Units (as defined below) subject to the over-allotment option in full (the “Over-Allotment”)
and as a result, 1,125,000 Founder Shares were no longer subject to forfeiture. In connection with certain qualified institutional buyers
or institutional accredited investors (the “Anchor Investors”) purchasing 32,400,000 Units in our Initial Public Offering
and the Over-Allotment, our Sponsor sold an aggregate of 1,650,000 Founder Shares to the Anchor Investors. On October 28, 2022, one of
our independent directors resigned and forfeited their 40,000 Founder Shares. On October 31, 2022, we issued 40,000 Founder Shares to
a newly appointed independent director. The holders of our Founder Shares (other than the Anchor Investors) are referred to herein as
our “initial shareholders.”
On
the IPO Closing Date, we consummated our Initial Public Offering of 30,000,000 Units, and on July 27, 2021, we consummated the Over-Allotment
of 4,500,000 Units. The Units were sold at a price of $10.00 per unit, generating gross proceeds to us of approximately $345.0 million.
Each unit (“Unit”) consists of one Class A ordinary share and one-fourth of one redeemable warrant. Each whole warrant (a
“public warrant”) entitles the holder thereof to purchase one of our Class A ordinary shares at a price of $11.50 per share,
subject to adjustment, and only whole warrants are exercisable. The public warrants will become exercisable 30 days after the completion
of our initial business combination, and will expire five years after the completion of our initial business combination or earlier upon
redemption or liquidation.
On
the IPO Closing Date, simultaneously with the consummation of our Initial Public Offering, we completed the private sale of 6,333,333
private placement warrants (the “Private Placement Warrants”) at a purchase price of $1.50 per warrant to TortoiseEcofin
Borrower LLC, a Delaware limited liability company (“TortoiseEcofin Borrower”) and an affiliate of our Sponsor, generating
gross proceeds to us of approximately $9.5 million. Concurrently with the consummation of the Over-Allotment, TortoiseEcofin Borrower
purchased 600,000 additional Private Placement Warrants, generating gross proceeds of $900,000. Each Private Placement Warrant entitles
the holder to purchase one of our Class A ordinary shares at $11.50 per share. The Private Placement Warrants (including the Class A
ordinary shares issuable upon exercise thereof) may not, subject to certain limited exceptions, be transferred, assigned or sold by the
holder until 30 days after the completion of our initial business combination.
We
received gross proceeds from our Initial Public Offering, the Over-Allotment and the sale of the Private Placement Warrants of $355.4
million. $345.0 million of the gross proceeds were deposited into a trust account established for the benefit of our public shareholders
(the “Trust Account”). The $345.0 million of net proceeds held in the Trust Account includes approximately $12.1 million
of deferred underwriting discounts and commissions that will be released to the underwriters of our Initial Public Offering upon completion
of our initial business combination. Of the gross proceeds from our Initial Public Offering, the Over-Allotment and the sale of the Private
Placement Warrants that were not deposited in the Trust Account, $6.9 million was used to pay underwriting discounts and commissions
in connection with our Initial Public Offering, approximately $195,000 was used to repay loans and advances from our Sponsor, and the
balance was reserved to pay accrued offering and formation costs, business, legal and accounting due diligence expenses on prospective
acquisitions and continuing general and administrative expenses.
The
Class B ordinary shares will automatically convert into Class A ordinary shares at the time of our initial business combination on a
one-for-one basis, subject to adjustment for share sub-division, share dividends, reorganizations, recapitalizations and the like. In
the case that additional Class A ordinary shares, or equity-linked securities, are issued or deemed issued in excess of the amounts sold
in our Initial Public Offering and related to the closing of the initial business combination, the ratio at which the Class B ordinary
shares will convert into Class A ordinary shares will be adjusted (unless the holders of a majority of the outstanding Class B ordinary
shares agree to waive such adjustment with respect to any such issuance or deemed issuance) so that the number of Class A ordinary shares
issuable upon conversion of all issued and outstanding Class B ordinary shares will equal, in the aggregate, on an as-converted basis,
20% of the sum of the total number of all ordinary shares outstanding upon the completion of our Initial Public Offering plus all Class
A ordinary shares and equity-linked securities issued or deemed issued in connection with the business combination (excluding any shares
or equity-linked securities issued, or to be issued, to any seller in the business combination).
On
September 8, 2021, we announced that, commencing on September 9, 2021, holders of the Units sold in our Initial Public Offering may elect
to separately trade the Class A ordinary shares and public warrants included in the Units. The Class A ordinary shares and public warrants
that are separated trade on the New York Stock Exchange (the “NYSE”) under the symbols “TRTL” and “TRTL
WS,” respectively. Those Units not separated will continue to trade on the NYSE under the symbol “TRTL.U.”
Our
Company
We
are a blank check company incorporated as a Cayman Islands exempted company in February 2021 and formed for the purpose of effecting
a merger, amalgamation, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or
more businesses or entities, which we refer to throughout this Annual Report on Form 10-K as our initial business combination. We intend
to acquire and operate a business in the broad energy transition or sustainability arena targeting industries that require innovative
solutions to decarbonize in order to meet critical emission reduction objectives. The Intergovernmental Panel on Climate Change estimates,
based on research carried out by six global integrated assessment model teams, that limiting global warming to 1.5 degrees Celsius above
pre-industrial temperatures will require annual investments of $1.6-$3.8 trillion in the global supply-side energy system through 2050,
with some climate scenarios requiring net-zero global emissions by 2050, resulting in the need for high-growth energy transition and
technology solutions. In light of this and other developments fostering a sense of urgency and responsibility, as of March 2023, more
than 2,396 companies worldwide are leading the zero-carbon transition by setting emissions reduction targets through the Science Based
Targets initiative (SBTi). We believe our management team, together with the broader Tortoise Ecofin Platforms, which are affiliates
of our Sponsor, are well suited to identify opportunities that create a positive environmental impact, exhibit strong Environmental,
Social and Governance (“ESG”) attributes and have the potential to generate attractive risk-adjusted returns for our shareholders,
although we may pursue a business combination opportunity in any business or industry.
Our
management team and an affiliate of Tortoise co-founded Tortoise Acquisition Corp. (“Tortoise Acquisition I”; NYSE: SHLL),
a special purpose acquisition company that completed its initial public offering in March 2019, in which it sold 23,300,917 units, each
consisting of one share of Class A common stock and one-half of one warrant, with each whole warrant entitling the holder thereof to
purchase one share of Class A common stock, for an offering price of $10.00 per unit, generating aggregate proceeds of approximately
$233 million. In October 2020, Tortoise Acquisition I consummated its initial business combination with Hyliion Inc., a Delaware corporation
(“Hyliion”), a leader in electrified powertrain solutions for Class 8 commercial vehicles. The combined entity, Hyliion Holdings
Corp., is listed on the NYSE under the ticker symbol “HYLN.”
Our
management team and an affiliate of Tortoise co-founded Tortoise Acquisition Corp. II (“Tortoise Acquisition II”; NYSE: SNPR),
a special purpose acquisition company that completed its initial public offering in September 2020, in which it sold 34,500,000 units,
each consisting of one Class A ordinary share and one-fourth of one warrant, with each whole warrant entitling the holder thereof to
purchase one Class A ordinary share, for an offering price of $10.00 per unit, generating aggregate proceeds of approximately $345 million.
In August 2021, Tortoise Acquisition II consummated its initial business combination with Volta Industries, Inc., a Delaware corporation
(“Volta”), a leading owner-operator of public electric vehicle charging infrastructure. The combined entity, Volta Inc.,
is listed on the NYSE under the ticker symbol “VLTA.”
We
believe that we will benefit from the valuable experience gained by our management team during the launch and operation of Tortoise Acquisition
II and Tortoise Acquisition I, including the process of evaluating numerous target companies and industry sectors, selecting Volta and
Hyliion as business combination partners, negotiating the terms of the business combination agreements and all of the related financing
transactions, soliciting shareholder approval and consummating the business combinations and the related transactions.
Our
extensive sourcing network includes (i) business founders, owners and senior management contacts, (ii) private equity, financial investors
and other sponsors of private businesses and (iii) industry professionals, including investment banking, legal, accounting and other
industry focused experts. We believe that there are highly attractive investment opportunities that are accessible through our network
of contacts which exist within our focus industries and also exhibit strong ESG profiles. We believe our management team’s experience
and combined expertise provide us with unique insight to evaluate targets across numerous sectors, including clean and renewable energy
and related infrastructure, electric and autonomous mobility, energy efficiency and battery storage solutions, environmental services,
hydrogen, renewable and bio fuels, and waste to energy and recycling, among others. Businesses that we plan to target for our initial
business combination will be those that are at an inflection point in their life cycle and that we believe can benefit from our strategic
insights, capital and expertise to accelerate their business development, improve their business prospects and unlock the full value
of their businesses.
We
believe in the ability of our management team to add significant value to a target company from a business building, commercial, capital
markets and sustainability perspective. Our extensive operational experience and the public company expertise of our management team
present the potential for an attractive risk-adjusted return profile through our involvement and stewardship. As demonstrated by our
management team with Tortoise Acquisition II’s consummated business combination with Volta and Tortoise Acquisition I’s consummated
business combination with Hyliion, we believe that the extensive skills and perspectives of our management team will enable us to identify
dynamic and visionary management teams and work alongside them to crystalize their strategic vision, enhance their business plan and
improve their operational capabilities. In addition, our team has significant hands-on experience working with growth-oriented companies
in preparing for and executing an initial public offering or an initial business combination, and serving as active owners and directors
by working closely with these companies to assist in the execution of their strategic plan, support their continued transformations and
help access and create value in the public markets.
We
believe we play an important role in the public equity markets by identifying high-quality, growth-oriented businesses, evaluating the
merits and viability of high-growth business plans and completing pre-investment due diligence, focusing and preparing the business for
the multi-faceted requirements of being a publicly traded company, and both capitalizing and leading the actual business combination
transaction. This function will be invaluable to our eventual business combination target, as we have the skills to validate and enhance
their business plan, improve their ESG profile and prepare them for the rigors of being publicly listed, as well as to our investors
who might otherwise not have the opportunity or confidence to publicly invest in the business we identify in the transition towards a
decarbonized and cleaner future.
Management,
Our Sponsor and Board of Directors
We
are led by our co-founder Vincent Cubbage, who serves as our Chief Executive Officer and Chairman of the Board and has over 27 years
of investment experience. Mr. Cubbage co-founded and served as Chief Executive Officer, President and Chairman of the Board of Tortoise
Acquisition II and continues to serve on the board of directors of Volta Inc. following the closing of Tortoise Acquisition II’s
business combination with Volta. Mr. Cubbage currently serves as the Interim Chief Executive Officer of Volta Inc. Mr. Cubbage also co-founded
and served as Chief Executive Officer, President and Chairman of the Board of Tortoise Acquisition I and continues to serve on the board
of directors of Hyliion Holdings Corp. following the closing of Tortoise Acquisition I’s business combination with Hyliion. Mr.
Cubbage joined Tortoise Capital Advisors, L.L.C. in January 2019 and is a Managing Director on the Private Energy Transition team. Prior
to joining Tortoise Capital Advisors, L.L.C., Mr. Cubbage founded private equity firm Lightfoot Capital in 2006 and served as its Chief
Executive Officer and Managing Partner from 2006 to 2019. Mr. Cubbage also served as the Chief Executive Officer and Chairman of the
Board of Arc Logistics GP LLC, the general partner of Arc Logistics Partners LP (NYSE: ARCX), a portfolio company formed by Lightfoot
Capital in 2007 and sold in 2017. Prior to founding Lightfoot Capital, Mr. Cubbage was an investment banker and, among other positions,
was a Senior Managing Director and sector head in the Investment Banking Division of Banc of America Securities.
Our
management team includes all of the members of the management team of Tortoise Acquisition II and Tortoise Acquisition I. Mr. Stephen
Pang serves as our President and Chief Financial Officer and as a Director on our Board. He also served as Chief Financial Officer and
as a Director of Tortoise Acquisition II and Tortoise Acquisition I and continues to serve on the board of directors of Hyliion Holdings
Corp. following the closing of Tortoise Acquisition I’s business combination with Hyliion. Mr. Pang is a Managing Director on the
Private Energy Transition team at Tortoise Capital Advisors, L.L.C. and is responsible for the firm’s public and private direct
investments, including PIPEs. Throughout its history, Tortoise Capital Advisors, L.L.C. has been involved in over 87 PIPEs across various
investment vehicles. Mr. Darrell Brock serves as our Vice President of Business Development and Mr. Steven Schnitzer serves as our Vice
President, General Counsel and Secretary, each of whom served in the same capacities for Tortoise Acquisition II and Tortoise Acquisition
I. Mr. Evan Zimmer serves as our Vice President of Finance and served in the same capacity for Tortoise Acquisition II. In addition,
Mr. Evan Zimmer was an employee of Tortoise who was dedicated to the business combination activities of Tortoise Acquisition I. Messrs.
Brock, Schnitzer and Zimmer served in similar capacities at Lightfoot Capital and Arc Logistics under Mr. Cubbage’s leadership.
The members of our entire management team have extensive experience identifying, evaluating, negotiating and completing the types of
transactions that we plan to pursue for our initial business combination.
We
are further supported by our board of directors, comprised of senior leaders who have been at the forefront of forward thinking on climate
change, and sustainability policies and companies leading the transition to a cleaner future. They come from a wide range of sub-sectors
and functional areas and provide us with access to their expertise and extensive industry networks from which we source and evaluate
targets as well as devise plans to optimize any business that we acquire.
Our
management team also draws upon the resources and support of the broader Tortoise Ecofin Platforms, which brings decades of investing
expertise in the areas of sustainability, energy transition, infrastructure, water and clean energy. Founded in 2002, Tortoise has a
family of investment funds with over $9.5 billion of assets under management as of January 31, 2023. Tortoise has built a successful
track record through a disciplined investment framework, with expertise that spans across the entire energy value chain in addition to
sustainable infrastructure, including wind, solar and battery storage assets and social infrastructure. Tortoise is a signatory to the
United Nations’ Principles for Responsible Investment and incorporates SDGs and ESG factor analysis into its investment strategy,
policies and practices firmwide. Tortoise’s “Teal Energy Deal” promotes a reduction in carbon emissions globally by
adopting a transition to a cleaner energy future. The Teal Energy Deal principally aligns with the following four SDGs: (1) No poverty;
(7) Affordable and Clean Energy; (9) Industry, Innovation and Infrastructure; and (13) Climate Action.
We
believe that potential sellers of target businesses will view the fact that our management team has successfully negotiated and consummated
business combinations with Volta and Hyliion as positive factors in considering whether or not to enter into and consummate a business
combination with us. However, past performance of our management team, Tortoise Acquisition II, Tortoise Acquisition I, Tortoise or Lightfoot
Capital 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 identify a suitable candidate for our initial business combination. You should not rely on the historical record of our management
team, Tortoise Acquisition II, Tortoise Acquisition I, Tortoise, Lightfoot Capital or any related investment’s performance as indicative
of our future performance.
Business
Strategy
Our
acquisition strategy is to identify and complete our initial business combination with a company that is playing an active role in providing
solutions to reduce emissions and/or improve the sustainability of products and industries, along with making a positive impact on the
communities that it serves by employing efficient and innovative business practices. We intend to target a company and management team
that shares our commitment to good governance and transparency.
We
believe our management team’s track record and execution experience, including its experience sourcing Volta for Tortoise Acquisition
II and Hyliion for Tortoise Acquisition I and consummating the business combinations thereof, together with the deep industry and investing
experience of our Sponsor combined with the extensive experience of our Chief Executive Officer and management team, make us very well
positioned to identify, source, negotiate and execute a business combination that meets our investment criteria and generates attractive
risk-adjusted returns for our shareholders.
Our
management team and the investment professionals of our Sponsor have an extensive network of senior industry contacts, including corporate
executives, investment banking professionals, private equity and other financial sponsors, and owners of private businesses. In addition,
Tortoise has a long history of partnering with leading public and private equity investors. We believe this network is a key competitive
advantage in sourcing attractive business combination targets that meet our criteria, and that the reputation and expertise of our management
team and Tortoise around energy transition and sustainability themes will make us a preferred partner for potential business combination
counterparties.
Our
management team brings a diversity of transactional and investing experience that will enable us to evaluate opportunities across multiple
sectors. Throughout his long career, including as Chief Executive Officer of Tortoise Acquisition II and Tortoise Acquisition I, investment
banker, Chief Executive Officer and Managing Partner of Lightfoot Capital and Chief Executive Officer and Chairman of the Board of NYSE-listed
Arc Logistics, Mr. Cubbage oversaw the evaluation of hundreds of acquisitions and investments. As a Managing Director and Portfolio Manager
at Tortoise Capital Advisors, L.L.C., Mr. Pang has evaluated and made numerous portfolio company investments across a broad platform
of industry sectors and strategies. We believe the breadth of Tortoise’s and Messrs. Cubbage’s and Pang’s investment
experience across multiple sub-sectors is a competitive advantage.
We
believe that the operational experience of our management team should enable us to enhance the strategic vision and operational performance
of the assets and businesses that we acquire in order to maximize value for shareholders. This may include improving operating efficiencies,
increasing margins and profitability, driving revenue growth, investing in organic growth projects, pursuing future strategic acquisitions
or divestitures and optimizing the capital structure. We believe our expertise in identifying and sourcing compelling investment opportunities
combined with our strategic and operational proficiency in creating value provides a competitive advantage relative to other strategic
and financial buyers.
Our
management team and Sponsor have a deep understanding of capital markets, which we believe is an important aspect of a special purpose
acquisition company management team. We believe our Chief Executive Officer’s and our Chief Financial Officer’s extensive
track records of public and private investments, including PIPEs, provide valuable expertise in evaluating and executing capital markets
transactions. We believe that the combination of our management team’s experience and network in the private and public equity
markets, together with the resources of the broader Tortoise Ecofin Platforms, will allow us to effectively identify, evaluate, finance
and structure the business combination transaction.
We
believe that our proven, differentiated and disciplined approach to sourcing, analyzing and ultimately executing an initial business
combination enables us to find targets with attractive risk-adjusted return profiles for our shareholders. We have core investing tenets
that guide our rigorous evaluations and commit to turning down opportunities that don’t satisfy our risk-adjusted return framework.
As
outlined above, we have an integrated team with a full suite of strategic, financial, legal and operational capabilities, allowing us
to identify targets and complete our due diligence in a thorough and expedited manner. We believe our integrated team and affiliation
with Tortoise will also allow us to pursue a number of transaction opportunities concurrently and compress the time required from initial
identification of an opportunity to transaction announcement.
Business
Combination Criteria
Consistent
with our business strategy, we have identified the following general criteria and guidelines that we believe are important in evaluating
candidates for our initial business combination. We will use these criteria and guidelines in evaluating business combination opportunities,
but we may decide to enter into our initial business combination with a target business that does not meet these criteria and guidelines.
We intend to focus on candidates that we believe:
| ● | will
benefit from our team’s operating expertise, technical expertise, structuring expertise,
extensive network, insight and capital markets expertise; |
| ● | exhibit
unrecognized value or other characteristics, desirable returns on capital, and a need for
capital to achieve the company’s growth strategy, that we believe have been misevaluated
by the marketplace based on our analysis and due diligence review; |
| ● | are
at an inflection point, are in need of additional management expertise, are able to innovate
through new operational techniques, or where we believe we can drive improved financial performance; |
| ● | have
attractive opportunities to grow the business through organic growth projects and third-party
acquisitions; |
| ● | will
be well received by public investors and are expected to have good access to the public capital
markets; |
| ● | are
engaged in activities that are consistent with Tortoise’s and management’s view
of macro trends; and |
| ● | are
expected to generate attractive risk-adjusted returns for our shareholders. |
These
criteria are not intended to be exhaustive. Any evaluation relating to the merits of a particular initial business combination may be
based, to the extent relevant, on these general guidelines as well as other considerations, factors and criteria that our management
may deem relevant. In the event that we decide to enter into our initial business combination with a target business that does not meet
the above criteria and guidelines, we will disclose that the target business does not meet the above criteria in our shareholder communications
related to our initial business combination, which would be in the form of proxy solicitation materials or tender offer documents that
we would file with the SEC.
Initial
Business Combination
The
NYSE rules require that we must complete one or more business combinations having an aggregate fair market value of at least 80% of the
net assets held in the Trust Account (net of amounts disbursed to management for working capital purposes and excluding the amount of
any deferred underwriting discount held in the Trust Account) at the time of the agreement to enter into the initial business combination.
Our board will make the determination as to the fair market value of a target business or businesses. If our board is not able to independently
determine the fair market value of a target business or businesses, we will obtain an opinion from an independent investment banking
firm that is a member of the Financial Industry Regulatory Authority (“FINRA”) or an independent accounting firm with respect
to the satisfaction of such criteria. While we consider it unlikely that our board will not be able to make an independent determination
of the fair market value of a target business or businesses, it may be unable to do so if the board is less familiar or experienced with
the target company’s business or there is a significant amount of uncertainty as to the value of the company’s assets or
prospects.
Our
amended and restated memorandum and articles of association requires the affirmative vote of a majority of our board of directors, which
must include a majority of our independent directors and each of the non-independent directors nominated by our Sponsor, to approve our
initial business combination.
We
may, at our option, pursue a business combination opportunity jointly with one or more entities affiliated with Tortoise and/or one or
more investors in funds or separate accounts managed by Tortoise, which we refer to as an “Affiliated Joint Acquisition.”
Any such parties would co-invest only if (i) permitted by applicable regulatory and other legal limitations; (ii) we and Tortoise considered
such a transaction to be mutually beneficial to us as well as the affiliated entity; and (iii) other business reasons exist to do so,
such as the strategic merits of including such co-investors, the need for additional capital beyond the amount held in our Trust Account
to fund the business combination transaction and/or the desire to obtain committed capital for closing the business combination transaction.
An Affiliated Joint Acquisition may be effected through a co-investment with us in the target business at the time of our initial business
combination, or we could raise additional proceeds to complete the business combination by issuing to such parties a class of equity
or equity-linked securities. We refer to this potential future issuance, or a similar issuance to other specified purchasers, as a “specified
future issuance.” The amount and other terms and conditions of any such specified future issuance would be determined at the time
thereof. We are not obligated to make any specified future issuance and may determine not to do so. This is not an offer for any specified
future issuance. Pursuant to the anti-dilution provisions of our Class B ordinary shares, any such specified future issuance would result
in an adjustment to the conversion ratio such that our initial shareholders and their permitted transferees, if any, would retain their
aggregate percentage ownership at 20% of the sum of the total number of all ordinary shares outstanding upon completion of our Initial
Public Offering plus all shares issued in the specified future issuance (excluding any shares or equity-linked securities issued, or
to be issued, to any seller in the business combination), unless the holders of a majority of the then-outstanding Class B ordinary shares
agreed to waive such adjustment with respect to the specified future issuance at the time thereof. We cannot determine at this time whether
a majority of the holders of our Class B ordinary shares would then agree to so 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 shareholders on structuring an initial business combination; (iii) negotiation with
parties providing financing which would trigger the anti-dilution provisions of the Class B ordinary shares; or (iv) as part of the Affiliated
Joint Acquisition. If such adjustment is not waived, the specified future issuance would not reduce the percentage ownership of holders
of our Class B ordinary shares, but would reduce the percentage ownership of holders of our Class A ordinary shares. If such adjustment
is waived, the specified future issuance would reduce the percentage ownership of holders of both classes of our ordinary shares.
We
anticipate structuring our initial business combination either (i) in such a way so that the post-transaction company in which our public
shareholders 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 shareholders or for other reasons, including an Affiliated Joint Acquisition.
However, we will only complete a business combination if the post-transaction company owns or acquires 50% or more of the outstanding
voting securities of the target or otherwise is not required to register as an investment company under the Investment Company Act of
1940, as amended (the “Investment Company Act”). Even if the post-transaction company owns or acquires 50% or more of the
voting securities of the target, our shareholders prior to the business combination may collectively own a minority interest in the post-transaction
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 in exchange for all of the outstanding capital stock, shares or other
equity interests 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 shareholders 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 valued for purposes of the 80% of net assets test. If the business combination involves more than one target
business, the 80% of net assets 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 shareholder approval, as applicable.
Our
Business Combination Process
In
evaluating prospective business combinations, we expect to conduct a thorough due diligence review process. This due diligence review
process will be specific to the target business, but will include, among other things, a review of historical and projected financial
and operating data, meetings with management and their financial sponsors (if applicable), an assessment of the commodity price risk
of the business and our ability to mitigate such risks with hedges, on-site inspection of assets, discussion with customers, legal and
environmental reviews and other reviews as we deem appropriate. We will also utilize our expertise and Tortoise’s expertise operating
companies and evaluating operating projections, financial projections and determining the appropriate return expectations given the risk
profile of the target business.
We
are not prohibited from pursuing an initial business combination with a company that is affiliated with Tortoise or our officers or directors.
In the event we seek to complete our initial business combination with a company that is affiliated with Tortoise or our officers or
directors, we, or a committee of independent directors, will obtain an opinion from an independent investment banking firm which is a
member of FINRA or an independent accounting firm that our initial business combination is fair to our company from a financial point
of view.
Members
of our management team and our independent directors directly or indirectly own Founder Shares and/or Private Placement Warrants following
the Initial Public Offering and, accordingly, may have a conflict of interest in determining whether a particular target business is
an appropriate business with which to effectuate our initial business combination. Further, each of 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 were to be included by a target business as a condition to any agreement with respect to our initial business combination.
All
of the members of our management team are employed by Tortoise or affiliates of Tortoise. Tortoise and its affiliates are continuously
made aware of potential business opportunities, one or more of which we may desire to pursue for a business combination.
Tortoise
and 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 pursuant to which such officer or director is or will be required to present a business combination opportunity. For
example, Tortoise and certain of its officers currently are obligated by contract to offer or allocate certain investment opportunities
first to specific private funds managed by them.
Accordingly,
if any of our officers or directors becomes aware of a business combination opportunity which is suitable for an 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 opportunity to such entity. We believe, however, that the fiduciary duties or contractual obligations of Tortoise and our officers
or directors will not materially affect our ability to complete our initial business combination. In addition, we may, at our option,
pursue an Affiliated Joint Acquisition opportunity with an entity to which Tortoise or an officer or director has a fiduciary or contractual
obligation. Any such entity may co-invest with us in the target business at the time of our initial business combination, or we could
raise additional proceeds to complete the business combination by making a specified future issuance to any such entity. Our amended
and restated memorandum and articles of association provides 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 our 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, members of our management team or their affiliates may sponsor other special purpose acquisition companies similar to ours during
the period in which we are seeking an initial business combination and our officers and directors may become an officer or director of
any other special purpose acquisition company with a class of securities registered under the Exchange Act, even before we have entered
into a letter of intent, agreement in principle or definitive agreement regarding our initial business combination. Any such companies
may present additional conflicts of interest in pursuing an acquisition target, particularly in the event there is an overlap among the
management teams.
Our
Management Team
Members
of our management team are not obligated to devote any specific number of hours to our matters 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 that any members
of our management team will devote in any time period will vary based on whether a target business has been selected for our initial
business combination and the current stage of the business combination process.
We
believe our management team’s operating and transaction experience and relationships with companies provides us with a substantial
number of potential business combination targets. Over the course of their careers, the members of our management team have developed
a broad network of contacts and corporate relationships around the world. This network has grown through the activities of our management
team sourcing, acquiring and financing businesses, our management team’s relationships with sellers, financing sources and target
management teams and the experience of our management team in executing transactions under varying economic and financial market conditions.
See “Part III, Item 10. Directors, Executive Officers and Corporate Governance” for a more complete description of our management
team’s experience.
Status
as a Public Company
We
believe our structure will make us an attractive business combination partner to target businesses. As an existing public company, we
offer a target business an alternative to the traditional initial public offering through a merger or other business combination with
us. In a business combination transaction with us, the owners of the target business may, for example, exchange all of their outstanding
capital stock, shares or other equity interests in the target business for our Class A ordinary shares (or shares of a new holding company)
or for a combination of our Class A ordinary shares and cash, allowing us to tailor the consideration to the specific needs of the sellers.
Although there are various costs and obligations associated with being a public company, we believe target businesses will find this
method a more certain and cost effective method to becoming a public company than the typical initial public offering. The typical initial
public offering process takes a significantly longer period of time than the typical business combination transaction process, and there
are significant expenses in the initial public offering process, including underwriting discounts and commissions, that may not be present
to the same extent in connection with a business combination with us.
Furthermore,
once a proposed business combination is completed, the target business will have effectively become public, whereas an initial public
offering is always subject to the underwriters’ ability to complete the offering, as well as general market conditions, which could
delay or prevent the offering from occurring or could have negative valuation consequences. Once public, we believe the target business
would then have greater access to capital, an additional means of providing management incentives consistent with shareholders’
interests and the ability to use its equity as currency for acquisitions. Being a public company can offer further benefits by augmenting
a company’s profile among potential new customers and vendors and aid in attracting talented employees.
While
we believe that our structure and our management team’s backgrounds will make us an attractive business partner, some potential
target businesses may view our status as a blank check company, such as our lack of an operating history and our ability to seek shareholder
approval of any proposed initial business combination, negatively.
We
are an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business
Startups Act of 2012 (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 (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 shareholder 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 (i) the last day of the fiscal year (a) following the fifth anniversary of
the completion of our Initial Public Offering, (b) in which we have total annual gross revenue of at least $1.235 billion (as adjusted
for inflation pursuant to SEC rules from time to time), or (c) in which we are deemed to be a large accelerated filer, which means the
market value of our Class A ordinary shares that is held by non-affiliates exceeds $700 million as of the prior June 30th, and (ii) the
date on which we have issued more than $1.0 billion in non-convertible debt securities during the prior three-year period.
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 (i) the market value of our ordinary shares
held by non-affiliates equals or exceeds $250 million as of the end of that year’s second fiscal quarter and our annual revenues
equaled or exceeded $100 million during our most recently completed fiscal year or (ii) the market value of our ordinary shares held
by non-affiliates equals or exceeds $700 million as of the end of that year’s second fiscal quarter.
Effecting
our Initial Business Combination
We
intend to effectuate our initial business combination using cash from the proceeds of our Initial Public Offering and the sale of the
Private Placement Warrants, our shares, debt or a combination of the foregoing. We may seek to complete our initial business combination
with a company or business that may be financially unstable or in its early stages of development or growth, which would subject us to
the numerous risks inherent in such companies and businesses.
If
our initial business combination is paid for using equity or debt securities, or not all of the funds released from the Trust Account
are used for payment of the consideration in connection with our business combination or used for redemptions of purchases of our Class
A ordinary shares, 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 the post-transaction company, the payment of principal or interest due on indebtedness
incurred in completing our initial business combination, to fund the purchase of other companies or for working capital.
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 affect a target business.
We
may need to obtain additional financing to complete our initial business combination, either because the transaction requires more cash
than is available from the proceeds held in the Trust Account or because we become obligated to redeem a significant number of our public
shares upon completion of the 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 business combination would disclose the terms of the
financing and, only if required by applicable law, we would seek shareholder approval of such financing. There are no prohibitions on
our ability to issue securities or incur debt in connection with our initial business combination. We are not currently a party to any
arrangement or understanding with any third party with respect to raising any additional funds through the sale of securities, the incurrence
of debt or otherwise, other than the nonconvertible, unsecured promissory note (the “2023 Note”) issued by us on February
1, 2023, in the principal amount of $500,000, to TortoiseEcofin Borrower to fund our working capital needs. See “Part III, Item
13. Certain Relationships and Related Transactions, and Director Independence” for a more complete description of the 2023 Note.
Sources
of Target Businesses
We
anticipate that target business candidates will be brought to our attention from various unaffiliated sources, including investment market
participants, private equity groups, investment banking firms, consultants, accounting firms and large business enterprises. Target businesses
may be brought to our attention by such unaffiliated sources as a result of being solicited by us through calls or mailings. These sources
may also introduce us to target businesses in which they think we may be interested on an unsolicited basis. Our officers and directors,
as well as their affiliates, may also bring to our attention target business candidates that they become aware of through their business
contacts as a result of formal or informal inquiries or discussions they may have, as well as attending trade shows or conventions. In
addition, we expect to receive a number of proprietary deal flow opportunities that would not otherwise necessarily be available to us
as a result of the track record and business relationships of our officers and directors. 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 to the extent 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 a finder’s fee 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 our Sponsor or any of our existing officers or directors, or any entity with which
they are affiliated, be paid any finder’s fee, consulting fee or other compensation by the company prior to, or for any services
they render in order to effectuate, the completion of our initial business combination (regardless of the type of transaction that it
is). We have agreed to reimburse Tortoise Capital Advisors, L.L.C., an affiliate of our Sponsor, a total of $10,000 per month for office
space, utilities and secretarial and administrative support made available to us and to reimburse our Sponsor for any out-of-pocket expenses
related to identifying, investigating and completing an initial business combination. Some of our officers and directors may enter into
employment or consulting agreements with the post-transaction company following our initial business combination. The presence or absence
of any such fees or 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 business combination target that is affiliated with our Sponsor,
officers or directors, or from making the acquisition through a joint venture or other form of shared ownership with our Sponsor, officers
or directors. In the event we seek to complete our initial business combination with a business combination target that is affiliated
with our Sponsor, officers or directors, we, or a committee of independent directors, would obtain an opinion from an independent investment
banking firm which is a member of FINRA or an independent accounting firm that such an initial business combination is fair to our company
from a financial point of view. We are not required to obtain such an opinion in any other context.
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 then-current 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. We may pursue an Affiliated
Joint Acquisition opportunity with an entity to which an officer or director has a fiduciary or contractual obligation. Any such entity
may co-invest with us in the target business at the time of our initial business combination, or we could raise additional proceeds to
complete the acquisition by issuing to such entity a class of equity or equity-linked securities.
Selection
of a Target Business and Structuring of our Initial Business Combination
The
NYSE rules require that our initial business combination must occur with one or more target businesses that together have an aggregate
fair market value of at least 80% of the net assets held in the Trust Account (net of amounts disbursed to management for working capital
purposes and excluding the amount of any deferred underwriting discount held in the Trust Account) at the time of the agreement to enter
into the initial business combination. The fair market value of the target or targets 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 or value of comparable
businesses. If our board is not able to independently determine the fair market value of the target business or businesses, we will obtain
an opinion from an independent investment banking firm that is a member of FINRA or from an independent accounting firm with respect
to the satisfaction of such criteria. 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 an interest in the target sufficient for the post-transaction company 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 valued for purposes of the NYSE’s 80% of net assets test.
To
the extent we effect our 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 target business, 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 applicable, as well as a review of financial, operational, legal and other information which will be made available to us. If we determine
to move forward with a particular target, we will proceed to structure and negotiate the terms of the business combination transaction.
Any
costs incurred with respect to the identification and evaluation of, and negotiation with, a prospective target business with which our
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. The company will not pay any consulting fees to members of our management team, or any of their respective
affiliates, for services rendered to or in connection with our initial business combination.
Lack
of Business Diversification
For
an indefinite period of time after the completion 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 completing our business combination with only a single entity, our lack of diversification may:
| ● | 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 |
| ● | cause
us to depend on the marketing and sale of a single product or limited number of products
or services. |
Limited
Ability to Evaluate the Target’s Management Team
Although
we intend to closely scrutinize the management of a prospective target business when evaluating the desirability of effecting our business
combination with that business, our assessment of the target business’s 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. Furthermore, the future
role of members of our management team, if any, in the target business cannot presently be stated with any certainty. The determination
as to whether any of the members of our management team will remain with the combined company will be made at the time of our initial
business combination. While it is possible that one or more of our directors will remain associated in some capacity with us following
our business combination, it is unlikely that any of them will devote their full efforts to our affairs subsequent to our business combination.
Moreover, we cannot assure you that members of our management team will have significant 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.
Shareholders
May Not Have the Ability to Approve our Initial Business Combination
We
may conduct redemptions without a shareholder vote pursuant to the tender offer rules of the SEC, subject to the provisions of our amended
and restated memorandum and articles of association. However, we will seek shareholder approval if it is required by law or applicable
stock exchange rule, or we may decide to seek shareholder approval for business or other legal reasons. Under the NYSE’s listing
rules, shareholder approval would be required for our initial business combination if, for example:
| ● | we
issue Class A ordinary shares that will be equal to or in excess of 20% of the number of
our Class A ordinary shares then outstanding (other than in a public offering); |
| ● | any
of our directors, officers or substantial shareholders (as defined by the NYSE rules) has
a 5% or greater interest, directly or indirectly, in the target business or assets to be
acquired and if the number of ordinary shares to be issued, or if the number of ordinary
shares into which the securities may be convertible or exercisable, exceeds either (a) 1%
of the number of ordinary shares or 1% of the voting power outstanding before the issuance
in the case of any of our directors or officers or (b) 5% of the number of ordinary shares
or 5% of the voting power outstanding before the issuance in the case of any substantial
shareholders; or |
| ● | the
issuance or potential issuance of ordinary shares will result in our undergoing a change
of control. |
Permitted
Purchases of our Securities
In
connection with the shareholder approval of our business combination, our Sponsor, directors, officers, advisors or their affiliates
may purchase shares or public warrants in privately negotiated transactions or in the open market prior to the completion of our initial
business combination. There is no limit on the number of shares our Sponsor, directors, officers, advisors or their affiliates may purchase
in such transactions, subject to compliance with applicable law and the rules of the NYSE. Any such privately negotiated purchases may
be effected at purchase prices that are no higher than the per share pro rata portion of the Trust Account. However, they have no current
commitments, plans or intentions to engage in such transactions and have not formulated any terms or conditions for any such transactions.
None of the funds in the Trust Account will be used to purchase shares or public warrants in such transactions. If they engage in such
transactions, they will not make any such purchases when they are in possession of any material non-public information not disclosed
to the seller or if such purchases are prohibited by Regulation M under the Exchange Act. Such a purchase may include a contractual acknowledgement
that such shareholder, although still the record holder of our shares is no longer the beneficial owner thereof and therefore agrees
not to exercise its redemption rights. Any public shares purchased by our Sponsor or its affiliates would not be voted in favor of approving
the initial business combination.
In
the event that our Sponsor, directors, officers, advisors or their affiliates purchase public shares in privately negotiated transactions
from public shareholders who have already elected to exercise their redemption rights, such selling shareholders would be required to
revoke their prior elections to redeem their shares. In addition, our Sponsor and its affiliates would waive any redemption rights with
respect to any public shares that they purchase in any such privately negotiated transactions. We do not currently anticipate that such
purchases, if any, would constitute a tender offer subject to the tender offer rules under the Exchange Act or a going-private transaction
subject to the going-private rules under the Exchange Act; however, if the purchasers determine at the time of any such purchases that
the purchases are subject to such rules, the purchasers will comply with such rules.
The
purpose of any such purchases of shares could be to increase the likelihood of obtaining shareholder approval of the business combination
or 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 our 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. Any such purchases of our securities may result
in the completion of our business combination that may not otherwise have been possible. To the extent that our Sponsor or its affiliates
purchase any public shares as contemplated above, we will file a Current Report on Form 8-K prior to the special meeting that will disclose:
| ● | the
amount of such public shares purchased by our Sponsor or its affiliates, along with the purchase
price; |
| ● | the
purpose of the purchases by our Sponsor or its affiliates; |
| ● | the
impact, if any, of the purchases by our Sponsor or its affiliates on the likelihood that
the initial business combination will be approved; |
| ● | the
identities of our security holders who sold to our Sponsor or its affiliates (if not purchased
on the open market) or the nature of our security holders (e.g., 5% security holders) who
sold to our Sponsor or its affiliates; and |
| ● | the
number of public shares for which we have received redemption requests in connection with
the initial business combination. |
In
addition, if such purchases are made, the public “float” of our ordinary shares or public warrants may be reduced and the
number of beneficial holders of our securities may be reduced, which may make it difficult to maintain or obtain the quotation, listing
or trading of our securities on a national securities exchange.
Our
Sponsor, officers, directors and/or their affiliates anticipate that they may identify the shareholders with whom our Sponsor, officers,
directors or their affiliates may pursue privately negotiated purchases by either the shareholders contacting us directly or by our receipt
of redemption requests submitted by shareholders (in the case of Class A ordinary shares) following our mailing of proxy materials in
connection with our initial business combination. To the extent that our Sponsor, officers, directors, advisors or their affiliates enter
into a private purchase, they would identify and contact only potential selling shareholders who have expressed their election to redeem
their shares for a pro rata share of the Trust Account or vote against our initial business combination, whether or not such shareholder
has already submitted a proxy with respect to our initial business combination but only if such shares have not already been voted at
the general meeting related to our initial business combination. Our Sponsor, officers, directors, advisors or any of their affiliates
will select which shareholders to purchase shares from based on the negotiated price and number of shares and any other factors that
they may deem relevant, and will only purchase shares if such purchases comply with Regulation M under the Exchange Act and the other
federal securities laws.
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. Our Sponsor, officers, directors and/or their affiliates
will not make purchases of ordinary shares if the purchases would violate Section 9(a)(2) or Rule 10b-5 of the Exchange Act.
Redemption
Rights for Public Shareholders upon Completion of our Initial Business Combination
We
will provide our public shareholders with the opportunity to redeem all or a portion of their Class A ordinary shares upon the completion
of our initial business combination at a per-share price, payable in cash, equal to the aggregate amount on deposit in the Trust Account
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 taxes, divided by the number of then outstanding public shares, subject
to the limitations described herein. The per-share amount we will distribute to investors who properly redeem their shares will not be
reduced by the deferred underwriting discounts and commissions we will pay to the underwriters of our Initial Public Offering. Tortoise
and our Sponsor, officers and directors are not entitled to redemption rights with respect to any Founder Shares held by them or any
public shares they acquire in our Initial Public Offering or in connection with the completion of our business combination. The Anchor
Investors are not entitled to redemption rights with respect to any Founder Shares held by them in connection with the completion of
our business combination.
Limitations
on Redemptions
Our
amended and restated memorandum and articles of association provides 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 (so that we are not subject to the SEC’s “penny stock”
rules). However, the proposed business combination may require (i) cash consideration to be paid to the target or its owners, (ii) cash
to be transferred to the target for working capital or other general corporate purposes or (iii) the retention of cash to satisfy other
conditions in accordance with the terms of the proposed business combination. In the event the aggregate cash consideration we would
be required to pay for all Class A ordinary shares that are validly submitted for redemption plus any amount required to satisfy cash
conditions pursuant to the terms of the proposed business combination exceed the aggregate amount of cash available to us, we will not
complete the business combination or redeem any shares, and all Class A ordinary shares submitted for redemption will be returned to
the holders thereof.
Manner
of Conducting Redemptions
We
will provide our public shareholders with the opportunity to redeem all or a portion of their Class A ordinary shares upon the completion
of our initial business combination either (i) in connection with a general meeting called to approve the business combination or (ii)
by means of a tender offer. The decision as to whether we will seek shareholder 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 shareholder approval under applicable law or stock exchange listing
requirement. Asset acquisitions and share purchases would not typically require shareholder approval while direct mergers with our company
where we do not survive and any transactions where we issue more than 20% of our outstanding ordinary shares or seek to amend our amended
and restated memorandum and articles of association would require shareholder approval. If we structure a business combination transaction
with a target business in a manner that requires shareholder approval, we will not have discretion as to whether to seek a shareholder
vote to approve the proposed business combination. We currently intend to conduct redemptions in connection with a shareholder vote unless
shareholder 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 legal reasons.
If
we hold a shareholder vote to approve our initial business combination, we will, pursuant to our amended and restated memorandum and
articles of association:
| ● | conduct
the redemptions in conjunction with a proxy solicitation pursuant to Regulation 14A under
the Exchange Act, which regulates the solicitation of proxies, and not pursuant to the tender
offer rules, and |
| ● | file
proxy materials with the SEC. |
In
the event that we seek shareholder approval of our initial business combination, we will distribute proxy materials and, in connection
therewith, provide our public shareholders with the redemption rights described above upon completion of the initial business combination.
If
we seek shareholder approval, we will complete our initial business combination only if we obtain the approval of an ordinary resolution
under Cayman Islands law, or such higher percentage as may be required by Cayman Islands law, and pursuant to our amended and restated
memorandum and articles of association. A quorum for such meeting will consist of the holders present in person or by proxy of shares
of the Company representing a majority of the voting power of all outstanding shares of the Company entitled to vote at such meeting.
Holders of our Founder Shares will count toward this quorum. Our Sponsor, officers and directors have agreed to vote their Founder Shares
and any public shares purchased during or after our Initial Public Offering, and the Anchor Investors have agreed to vote any Founder
Shares held by them, in favor of our initial business combination. For purposes of seeking approval of the majority of our outstanding
ordinary shares voted, abstentions and non-votes will have no effect on the approval of our initial business combination once a quorum
is obtained. As a result, in addition to the Founder Shares, we would need (i) 12,937,501, or 37.5% (assuming all outstanding shares
were voted and our sponsor, officers and directors do not purchase any public shares), or (ii) 2,156,251, or 6.3% (assuming only the
minimum number of shares representing a quorum are voted and our Sponsor, officers and directors do not purchase any public shares),
of the 34,500,000 public shares sold in our Initial Public Offering to be voted in favor of the business combination in order to have
our initial business combination approved, subject to any higher consent threshold as may be required by Cayman Islands or other applicable
law. In the event that the Anchor Investors hold all 32,400,000 Units they purchased in our Initial Public Offering until prior to consummation
of our initial business combination and vote their public shares in favor of our initial business combination, in addition to the Founder
Shares, no affirmative votes from other public shareholders would be required to approve our initial business combination. The Anchor
Investors are not required to vote any of their public shares in favor of our initial business combination or for or against any other
matter presented for a shareholder vote. We intend to give approximately 30 days (but not less than 10 days nor more than 60 days) prior
written notice of any such meeting, if required, at which a vote shall be taken to approve our initial business combination. These quorum
and voting thresholds, and the voting agreements of our initial shareholders and the Anchor Investors, may make it more likely that we
will consummate our initial business combination. Each public shareholder may elect to redeem its public shares irrespective of whether
it votes for or against the proposed transaction. In addition, Tortoise and our Sponsor, officers and directors are not entitled to redemption
rights with respect to any Founder Shares and any public shares held by them in connection with the completion of a business combination.
The Anchor Investors are not entitled to redemption rights with respect to any Founder Shares held by them in connection with the completion
of a business combination.
If
we conduct redemptions pursuant to the tender offer rules of the SEC, we will, pursuant to our amended and restated memorandum and articles
of association:
| ● | conduct
the redemptions pursuant to Rule 13e-4 and Regulation 14E under 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 under the Exchange
Act, which regulates the solicitation of proxies. |
Upon
the public announcement of our business combination, we or our Sponsor will terminate any plan established in accordance with Rule 10b5-1
to purchase our Class A ordinary shares in the open market if we elect to redeem our public shares through a tender offer, 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 shareholders not tendering more
than the number of public shares we are permitted to redeem. If public shareholders tender more shares than we have offered to purchase,
we will withdraw the tender offer and not complete the initial business combination.
Limitation
on Redemption upon Completion of our Initial Business Combination if we Seek Shareholder Approval
If
we seek shareholder 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 memorandum and articles of association provides that a public shareholder,
together with any affiliate of such shareholder or any other person with whom such shareholder is acting in concert or as a “group”
(as defined under Section 13(d)(3) of the Exchange Act), will be restricted from redeeming its shares with respect to more than an aggregate
of 20% of the shares sold in our Initial Public Offering, which we refer to as the “Excess Shares.” We believe this restriction
will discourage shareholders from accumulating large blocks of shares, and subsequent attempts by such holders to use their ability to
exercise their redemption rights against a proposed business combination as a means to force us or our management to purchase their shares
at a significant premium to the then-current market price or on other undesirable terms. Absent this provision, a public shareholder
holding more than an aggregate of 20% of the shares sold in our Initial Public Offering could threaten to exercise its redemption rights
if such holder’s shares are not purchased by us, our Sponsor or our management at a premium to the then-current market price or
on other undesirable terms. By limiting our shareholders’ ability to redeem no more than 20% of the shares sold in our Initial
Public Offering without our prior consent, we believe we will limit the ability of a small group of shareholders to unreasonably attempt
to block our ability to complete our 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
shareholders’ ability to vote all of their shares (including Excess Shares) for or against our business combination.
Redemption
of Public Shares and Liquidation if no Initial Business Combination
Our
amended and restated memorandum and articles of association provides that we will have only 24 months (or 27 months from the closing
of our Initial Public Offering if we have executed a letter of intent, agreement in principle or definitive agreement for an initial
business combination within 24 months from the closing of our Initial Public Offering) from the closing of our Initial Public Offering
to complete our initial business combination. If we are unable to complete our initial business combination within such 24-month period
(or 27-month period as applicable) 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 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 shareholders’ rights as shareholders (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 shareholders and our board of directors, liquidate and dissolve, subject in
the case of clauses (ii) and (iii), to our obligations under Cayman Islands 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 the 24-month time period (or 27-month time period, as applicable).
Holders
of our Founder Shares will not be entitled to rights to liquidating distributions from the Trust Account with respect to the Founder
Shares held by them if we fail to complete our initial business combination within 24 months (or 27 months, as applicable) from the closing
of our Initial Public Offering. However, if our Sponsor, officers or directors or the Anchor Investors acquire public shares in or after
our Initial Public Offering, they will be entitled to liquidating distributions from the Trust Account with respect to such public shares
if we fail to complete our initial business combination within the allotted 24-month time period (or 27-month time period, as applicable).
Our
Sponsor, officers, directors and director nominees have agreed, pursuant to a written agreement with us, that they will not propose any
amendment to our amended and restated memorandum and articles of association that would affect the substance or timing of our obligation
to redeem 100% of our public shares if we have not consummated an initial business combination within 24 months (or 27 months, as applicable)
from the closing of our Initial Public Offering, unless we provide our public shareholders with the opportunity to redeem their Class
A ordinary 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 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. 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, we would not proceed with the amendment or the related redemption of our public shares at such time. Pursuant to our
amended and restated memorandum and articles of association, such an amendment would need to be approved by the affirmative vote of the
holders of at least two-thirds of all then outstanding ordinary shares who attend and vote in a general meeting.
We
expect that all costs and expenses associated with implementing our plan of dissolution, as well as payments to any creditors, will be
funded from amounts held outside the Trust Account, although we cannot assure you that there will be sufficient funds for such purpose.
However, if those funds are not sufficient to cover the costs and expenses associated with implementing our plan of dissolution, to the
extent that there is any interest accrued in the Trust Account not required to pay our taxes on interest income earned on the Trust Account
balance, we may request the trustee to release to us an additional amount of up to $100,000 of such accrued interest to pay those costs
and expenses.
The
proceeds deposited in the Trust Account could become subject to the claims of our creditors which would have higher priority than the
claims of our public shareholders. We cannot assure you that the actual per-share redemption amount received by shareholders will not
be substantially less than $10.00. 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 (other than our independent registered public accounting firm), prospective target
businesses and 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 shareholders, 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. 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. 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. Our Sponsor has agreed that it will be liable to us if and to the extent any claims by a third party (other than
our independent public accountants) for services rendered or products sold to us, or a prospective target business with which we have
entered into a written letter of intent, confidentiality or other similar agreement or business combination agreement, reduce the amount
of funds in the Trust Account to below (i) $10.00 per public share or (ii) such lesser amount per public share held in the Trust Account
as of the date of the liquidation of the Trust Account, due to reductions in value of the trust assets, in each case net of the amount
of interest which may be withdrawn to pay our taxes, except as to any claims by a third party or prospective target business who executed
a waiver of any and all rights to the monies held in the Trust Account (whether or not such waiver is enforceable) and except as to any
claims under our indemnity of the underwriters of our Initial Public Offering against certain liabilities, including liabilities under
the Securities Act. However, we have not asked our Sponsor to reserve for such indemnification obligations, nor have we independently
verified whether our Sponsor has sufficient funds to satisfy its indemnity obligations, and we believe that our Sponsor’s only
assets are securities of our company. Therefore, we cannot assure you that our Sponsor would be able to satisfy those obligations. As
a result, if any such claims were successfully made against the Trust Account, the funds available for our initial business combination
and redemptions could be reduced to less than $10.00 per public share. In such event, we may not be able to complete our initial business
combination, and you would receive such lesser amount per share in connection with any redemption of your public shares. None of our
officers or directors will indemnify us for claims by third parties including, without limitation, claims by vendors and prospective
target businesses.
In
the event that the proceeds in the Trust Account are reduced below (i) $10.00 per public share or (ii) such lesser amount per public
share held in the Trust Account as of the date of the liquidation of the Trust Account, due to reductions in value of the trust assets,
in each case net of the amount of interest which may be withdrawn to pay our taxes, and our Sponsor asserts that it is unable to satisfy
its indemnification obligations or that it has no indemnification obligations related to a particular claim, our independent directors
would determine whether to take legal action against our Sponsor to enforce its indemnification obligations. While we currently expect
that our independent directors would take legal action on our behalf against our Sponsor 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 if, for example, the
cost of such legal action is deemed by the independent directors to be too high relative to the amount recoverable or if the independent
directors determine that a favorable outcome is not likely. We have not asked our Sponsor to reserve for such indemnification obligations
and we cannot assure you that our Sponsor would be able to satisfy those obligations. 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 $10.00 per public share.
We
will seek to reduce the possibility that our Sponsor will have to indemnify the Trust Account due to claims of creditors by endeavoring
to have all vendors, service providers (other than our independent registered public accounting firm), 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 monies held in the Trust Account. Our Sponsor will also not be liable as to any claims under our indemnity of the underwriters of
our Initial Public Offering against certain liabilities, including liabilities under the Securities Act. At the IPO Closing Date, we
had access to up to approximately $1,000,000 from the proceeds of our Initial Public Offering with which to pay any such potential claims
(including costs and expenses incurred in connection with our liquidation, currently estimated to be no more than approximately $100,000).
In the event that we liquidate and it is subsequently determined that the reserve for claims and liabilities is insufficient, shareholders
who received funds from our Trust Account could be liable for claims made by creditors.
If
we file a winding up petition or a winding up petition is filed against us that is not dismissed, the proceeds held in the Trust Account
could be subject to applicable insolvency law, and a liquidator may determine that such funds should be included in our insolvency estate
and subject to the claims of third-party creditors with priority over the claims of our shareholders. To the extent any bankruptcy or
insolvency claims deplete the Trust Account, we cannot assure you we will be able to return $10.00 per share to our public shareholders.
Additionally, if we file a winding up petition or a winding up petition is filed against us that is not dismissed, any distributions
received by shareholders could be subject to challenge under applicable debtor/creditor and/or insolvency laws as a “voidable preference.”
As a result, a liquidator could seek to recover some or all amounts received by our shareholders. Furthermore, our board of directors
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 shareholders 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 shareholders will be entitled to receive funds from the Trust Account only (i) in the event of the redemption of our public shares
if we are unable to complete our initial business combination within 24 months (or 27 months, as applicable) from the closing of our
Initial Public Offering, subject to applicable law, (ii) in connection with a shareholder vote to approve an amendment to our amended
and restated memorandum and articles of association that would affect the substance or timing of our obligation to redeem 100% of our
public shares if we have not consummated an initial business combination within 24 months (or 27 months, as applicable) from the closing
of our Initial Public Offering or (iii) if they redeem their respective shares for cash upon the completion of the initial business combination.
In no other circumstances will a shareholder have any right or interest of any kind to or in the Trust Account. In the event we seek
shareholder approval in connection with our initial business combination, a shareholder’s voting in connection with the business
combination alone will not result in such shareholder redeeming its shares to us for an applicable pro rata share of the Trust Account.
Such shareholder must have also exercised its redemption rights described above. These provisions of our amended and restated memorandum
and articles of association, like all provisions of our amended and restated memorandum and articles of association, may be amended with
a shareholder vote.
Limited
Payments to Insiders
There
will be no finder’s fees, reimbursements or cash payments made by the Company 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, other
than the following payments, none of which will be made from the proceeds of our Initial Public Offering held in the Trust Account prior
to the completion of our initial business combination:
| ● | repayment
of up to an aggregate of $600,000 in loans made to us by our Sponsor to cover offering-related
and organizational expenses; |
| ● | repayment
of up to an aggregate of $500,000 in loans made to us by TortoiseEcofin Borrower under the
2023 Note to fund our working capital needs; |
| ● | reimbursement
for office space, utilities and secretarial and administrative support made available to
us by Tortoise Capital Advisors, L.L.C., an affiliate of our Sponsor, in an amount equal
to $10,000 per month; |
| ● | reimbursement
for any out-of-pocket expenses related to identifying, investigating, negotiating and completing
an initial business combination; and |
| ● | repayment
of loans which may be made by our Sponsor or an affiliate of our Sponsor or certain of our
officers and directors to finance general working capital needs in connection with an intended
initial business combination. Up to $1,500,000 of such loans may be convertible into warrants
of the post business combination entity at a price of $1.50 per warrant at the option of
the lender. The warrants would be identical to the Private Placement Warrants, including
as to exercise price, exercisability and exercise period. Except for the foregoing and the
2023 Note, the terms of such loans have not been determined and no written agreements exist
with respect to such loans. |
Competition
In
identifying, evaluating and selecting a target business for our 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 we do. 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 in connection with our public shareholders who exercise their redemption rights may reduce the resources available to us
for our initial business combination and 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.
Employees
We
currently have five officers. These individuals are not obligated to devote any specific number of hours to our matters 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 that 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.
Periodic
Reporting and Financial Information
We
have registered our Units, Class A ordinary shares and public 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.
We
will provide shareholders with audited financial statements of the prospective target business as part of the proxy solicitation or tender
offer materials (as applicable) sent to shareholders. These financial statements may be required to be prepared in accordance with U.S.
generally accepted accounting principles (“U.S. GAAP”), or reconciled to, U.S. GAAP, or International Financial Reporting
Standards (“IFRS”), depending on the circumstances, and the historical financial statements may be required to be audited
in accordance with the standards of the Public Company Accounting Oversight Board (the “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 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 requirements outlined above, or that the potential target business will
be able to prepare its financial statements in accordance with the requirements outlined above. To the extent that any applicable 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.
Website
Our
corporate website address is www.tortoisespac.com. Information contained on our website is not part of this Annual Report on Form
10-K.
Our
Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, as well as any amendments and exhibits to
these reports, filed or furnished pursuant to Section 13(a) or Section 15(d) of the Exchange Act, are available on our website, free
of charge, as soon as reasonable practicable after such reports are filed with, or furnished to, the SEC. Alternatively, you may access
these reports at the SEC’s website at www.sec.gov.
Item 1A. Risk Factors.
An
investment in our securities involves a high degree of risk. You should consider carefully all of the risks described below, together
with the other information contained in this Annual Report on Form 10-K, including our financial statements and related notes, before
making a decision to invest in our securities. If any of the following events occur, our business, financial condition and operating
results may be materially adversely affected. In that event, 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
We
are a company with no operating history and no revenues (other than interest earned on the funds held in the Trust Account), and you
have no basis on which to evaluate our ability to achieve our business objective.
We
are a company established in the Cayman Islands with no operating results. Because we lack an operating history, you have no basis upon
which to evaluate our ability to achieve our business objective of completing our initial business combination with one or more target
businesses. We may be unable to complete our business combination. If we fail to complete our business combination, we will never generate
any operating revenues.
Our
public shareholders may not be afforded an opportunity to vote on our proposed business combination, which means we may complete our
initial business combination even though a majority of our public shareholders do not support such a combination.
We
may choose not to hold a shareholder vote to approve our initial business combination if the business combination would not require shareholder
approval under applicable law or stock exchange listing requirements. Except as required by applicable law or stock exchange requirement,
the decision as to whether we will seek shareholder approval of a proposed business combination or will allow shareholders to sell their
shares to us in 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 otherwise require us to seek shareholder approval. Accordingly, we
may complete our initial business combination even if holders of a majority of our public shares do not approve of the business combination
we complete. Please refer to “Part I, Item 1. Business — Shareholders May Not Have the Ability to Approve Our Initial Business
Combination” for additional information.
Your
only opportunity 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.
Since
our board of directors may complete a business combination without seeking shareholder approval, public shareholders may not have the
right or opportunity to vote on the business combination, unless we seek such shareholder vote. Accordingly, if we do not seek shareholder
approval, your only opportunity to affect the investment decision regarding a potential business combination may be limited to exercising
your redemption rights within the period of time (which will be at least 20 business days) set forth in our tender offer documents mailed
to our public shareholders in which we describe our initial business combination.
If
we seek shareholder approval of our initial business combination, our initial shareholders and management team have agreed to vote any
shares held by them, and the Anchor Investors have agreed to vote any Founder Shares held by them, in favor of such initial business
combination, regardless of how our public shareholders vote.
The
Founder Shares held by the holders thereof (including our Sponsor and the Anchor Investors who acquired Founder Shares from our Sponsor
in connection with our Initial Public Offering) represent 20% of our outstanding ordinary shares. Our initial shareholders and management
team also may from time to time purchase Class A ordinary shares prior to our initial business combination. Our amended and restated
memorandum and articles of association provides that, if we seek shareholder approval of an initial business combination, such initial
business combination will be approved only if we obtain the approval of an ordinary resolution under Cayman Islands law, or such higher
percentage as may be required by Cayman Islands law, and pursuant to our amended and restated memorandum and articles of association,
including the Founder Shares. Accordingly, if we seek shareholder approval of our initial business combination, the agreement by Tortoise
and our Sponsor and management team to vote any Founder Shares and public shares held by them, and the agreement by the Anchor Investors
to vote any Founder Shares held by them, in favor of our initial business combination will increase the likelihood that we will receive
the requisite shareholder approval for such initial business combination. In the event that the Anchor Investors hold all 32,400,000
Units they purchased in our Initial Public Offering until prior to consummation of our initial business combination and vote their public
shares in favor of our initial business combination, in addition to the Founder Shares, no affirmative votes from other public shareholders
would be required to approve our initial business combination. The Anchor Investors are not required to vote any of their public shares
in favor of our initial business combination or for or against any other matter presented for a shareholder vote.
The
ability of our public shareholders to redeem their shares for cash may make our financial condition unattractive to potential business
combination targets, which may make it difficult for us to enter into a business combination with a target.
We
may seek to enter into a business combination 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. If too many public shareholders exercise their redemption rights, we would not
be able to meet such closing condition and, as a result, would not be able to proceed with the business combination. Furthermore, 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 after payment of underwriters’ fees and commissions (so that we are not subject to the
SEC’s “penny stock” rules). Consequently, if accepting all properly submitted redemption requests would cause our net
tangible assets to be less than $5,000,001 upon consummation of our initial business combination and after payment of underwriters’
fees and commissions or such greater amount necessary to satisfy a closing condition as described above, we would not proceed with such
redemption and the related business combination and may instead search for an alternate business combination. Prospective targets will
be aware of these risks and, thus, may be reluctant to enter into a business combination transaction with us.
The
ability of our public shareholders to exercise redemption rights with respect to a large number of our shares may not allow us to complete
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 shareholders 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 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 are 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. The above considerations may limit our ability to complete the most desirable business
combination available to us or optimize our capital structure. The amount of the deferred underwriting discounts and commissions payable
to the underwriters of our Initial Public Offering will not be adjusted for any shares that are redeemed in connection with a business
combination. The per-share amount we will distribute to shareholders who properly exercise their redemption rights will not be reduced
by the deferred underwriting discounts and commissions and after such redemptions, the amount held in the Trust Account will continue
to reflect our obligation to pay the entire deferred underwriting discounts and commissions.
The
ability of our public shareholders 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 shares.
If
our 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 is increased.
If our initial business combination is unsuccessful, you would not receive your pro rata portion of the funds in the Trust Account until
we liquidate the Trust Account. If you are in need of immediate liquidity, you could attempt to sell your shares in the open market;
however, at such time our shares 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 shares in the open market.
The
requirement that we complete our initial business combination within 24 months (or 27 months, as applicable) after the closing of the
Initial Public Offering may give potential target businesses leverage over us in negotiating a business combination and may limit the
time we have to conduct due diligence on potential business combination targets as we approach our initial business combination deadline,
which could undermine our ability to complete our business combination on terms that would produce value for our shareholders.
Any
potential target business with which we enter into negotiations concerning a business combination will be aware that we must complete
our initial business combination within 24 months from the closing of our Initial Public Offering (or 27 months, as applicable). Consequently,
such target business may obtain leverage over us in negotiating a business combination, knowing that if we do not complete our initial
business combination with that particular target business, we may be unable to complete our initial business combination with any target
business. This risk will increase as we get closer to the timeframe described above. In addition, we may have limited time to conduct
due diligence and may enter into our initial business combination on terms that we would have rejected upon a more comprehensive investigation.
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 ongoing coronavirus (COVID-19) pandemic and the status of debt and equity markets.
In
December 2019, a novel strain of coronavirus was reported to have surfaced in Wuhan, China, which has and is continuing to spread throughout
the world, including the United States. On January 30, 2020, the World Health Organization declared the outbreak of the coronavirus disease
(COVID-19) a “Public Health Emergency of International Concern.” On January 31, 2020, U.S. Health and Human Services Secretary
Alex M. Azar II declared a public health emergency for the United States to aid the U.S. healthcare community in responding to COVID-19,
and on March 11, 2020, the World Health Organization characterized the outbreak as a “pandemic.” The pandemic, together with
resulting voluntary and U.S. federal and state and non-U.S. governmental actions, including, without limitation, mandatory business closures,
public gathering limitations, restrictions on travel and quarantines, has meaningfully disrupted the global economy and markets. Although
the long-term economic fallout of COVID-19 is difficult to predict, it has and is expected to continue to have ongoing material adverse
effects across many, if not all, aspects of the regional, national and global economy. The COVID-19 outbreak has resulted, and a significant
outbreak of other infectious diseases could result, in a widespread health crisis that has adversely affected, in the case of COVID-19,
and could adversely affect, in the case of future outbreaks of infectious diseases, the economies and financial markets worldwide, and
the business of any potential target 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 continued concerns relating to COVID-19 continues to restrict travel,
limit the ability to have meetings with potential investors or the target company’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, any potential resurgences 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 target 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.
We
may not be able to complete our initial business combination within the 24 months (or 27 months, as applicable) after the closing of
our Initial Public Offering, 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 shareholders may receive only their pro rata portion of the funds in the Trust
Account that are available for distribution to public shareholders, and our warrants will expire worthless.
We
may not be able to find a suitable target business and complete our initial business combination within 24 months (or 27 months, as applicable)
after the closing of our Initial Public Offering. 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. If we have not completed
our initial business combination within such time 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 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 shareholders’ rights as shareholders
(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 shareholders and our board of directors, liquidate and dissolve,
subject in the case of clauses (ii) and (iii), to our obligations under Cayman Islands law to provide for claims of creditors and the
requirements of other applicable law. In such case, our public shareholders may only receive $10.00 per share, and our warrants will
expire worthless. In certain circumstances, our public shareholders may receive less than $10.00 per share on the redemption of their
shares.
In
connection with shareholder approval of our initial business combination, our Sponsor, directors, officers, advisors and their affiliates
may elect to purchase shares or public warrants from public shareholders or public warrantholders, which may influence a vote on a proposed
business combination and reduce the public “float” of our Class A ordinary shares and public warrants.
In
connection with shareholder approval of our initial business combination, our Sponsor, directors, officers, advisors or their affiliates
may purchase shares or public warrants or a combination thereof in privately negotiated transactions or in the open market prior to the
completion of our initial business combination, although they are under no obligation to do so. There is no limit on the number of shares
our Sponsor, directors, officers, advisors or their affiliates may purchase in such transactions, subject to compliance with applicable
law and the rules of the NYSE. Any such privately negotiated purchases may be effected at purchase prices that are no higher than the
per share pro rata portion of the Trust Account. However, other than as expressly stated herein, they have no current commitments, plans
or intentions to engage in such transactions and have not formulated any terms or conditions for any such transactions. None of the funds
in the Trust Account will be used to purchase shares or public warrants in such transactions. None of our Sponsor, directors, officers,
advisors or any of their respective affiliates will make any such purchases when they are in possession of any material non-public information
not disclosed to the seller of such public shares or during a restricted period under Regulation M under the Exchange Act. Such a purchase
could include a contractual acknowledgement that such public shareholder, although still the record holder of such public shares, is
no longer the beneficial owner thereof and therefore agrees not to exercise its redemption rights. Any public shares purchased by our
Sponsor or its affiliates would not be voted in favor of approving the initial business combination.
In
the event that our Sponsor, directors, officers, advisors or their affiliates purchase public shares in privately negotiated transactions
from public shareholders who have already elected to exercise their redemption rights, such selling shareholders would be required to
revoke their prior elections to redeem their shares. In addition, our Sponsor and its affiliates would waive any redemption rights with
respect to any public shares that they purchase in any such privately negotiated transactions. The purpose of any such purchases of shares
could be to increase the likelihood of obtaining shareholder approval of the business combination or 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 our 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. Any such purchases of our securities may result in the completion of our business combination
that may not otherwise have been possible. Any such purchases will be reported pursuant to Section 13 and Section 16 of the Exchange
Act to the extent the purchasers are subject to such reporting requirements. To the extent that our Sponsor or its affiliates purchase
any public shares as contemplated above, we will file a Current Report on Form 8-K prior to the special meeting that will disclose:
| ● | the
amount of such public shares purchased by our Sponsor or its affiliates, along with the purchase
price; |
| ● | the
purpose of the purchases by our Sponsor or its affiliates; |
| ● | the
impact, if any, of the purchases by our Sponsor or its affiliates on the likelihood that
the initial business combination will be approved; |
| ● | the
identities of our security holders who sold to our Sponsor or its affiliates (if not purchased
on the open market) or the nature of our security holders (e.g., 5% security holders) who
sold to our Sponsor or its affiliates; and |
| ● | the
number of public shares for which we have received redemption requests in connection with
the initial business combination. |
In
addition, if such purchases are made, the public “float” of our Class A ordinary shares or public warrants and the number
of beneficial holders of our securities may be reduced, possibly making it difficult to maintain or obtain the quotation, listing or
trading of our securities on a national securities exchange. See “Part I, Item 1. Business — Permitted Purchases of our Securities”
for a description of how our Sponsor, directors, officers, advisors or any of their affiliates will select which shareholders or warrantholders
to purchase securities from in any private transaction.
If
a shareholder fails to receive notice of our offer to redeem our public shares in connection with our business combination, or fails
to comply with the procedures for tendering its shares, such shares may not be redeemed.
We
will comply with the proxy rules or tender offer rules, as applicable, when conducting redemptions in connection with our business combination.
Despite our compliance with these rules, if a shareholder fails to receive our proxy solicitation or tender offer materials, as applicable,
such shareholder may not become aware of the opportunity to redeem its shares. In addition, the proxy solicitation or tender offer 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 redeem or tender public shares. For example, we may require our
public shareholders 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 proxy solicitation or tender
offer materials mailed to such holders, or up to two business days prior to the initially scheduled vote on the proposal to approve the
business combination in the event we distribute proxy materials, or to deliver their shares to the transfer agent electronically. In
the event that a shareholder fails to comply with these or any other procedures, its shares may not be redeemed.
If
we seek shareholder approval of our initial business combination and we do not conduct redemptions pursuant to the tender offer rules,
and if you or a “group” of shareholders are deemed to hold in excess of 20% of our Class A ordinary shares, you will lose
the ability to redeem all such shares in excess of 20% of our Class A ordinary shares.
If
we seek shareholder 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 memorandum and articles of association provides that a public
shareholder, together with any affiliate of such shareholder or any other person with whom such shareholder is acting in concert or as
a “group” (as defined under Section 13(d)(3) of the Exchange Act), will be restricted from redeeming its shares with respect
to more than an aggregate of 20% of the public shares, which we refer to as the “Excess Shares.” However, we would not be
restricting our shareholders’ ability to vote all of their shares (including Excess Shares) for or against our business combination.
Your inability to redeem the Excess Shares will reduce your influence over our ability to complete our 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 complete our business combination. As a result, you will continue to
hold that number of shares exceeding 20% and, in order to dispose of such shares, would be required to sell your shares in open market
transactions, potentially at a loss.
Because
of our limited resources and the significant competition for business combination opportunities, it may be more difficult for us to complete
our initial business combination. If we are unable to complete our initial business combination, our public shareholders may receive
only their pro rata portion of the funds in the Trust Account that are available for distribution to public shareholders, 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 local 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 our Initial Public Offering and the sale of the Private Placement Warrants,
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, we are obligated to offer holders of our public shares the right to redeem their shares for cash at the time of our initial
business combination, in conjunction with a shareholder vote or via a tender offer. Target businesses 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 shareholders
may receive only their pro rata portion of the funds in the Trust Account that are available for distribution to public shareholders,
and our warrants will expire worthless. In certain circumstances, our public shareholders may receive less than $10.00 per share upon
our liquidation.
If
the net proceeds of our Initial Public Offering and the sale of the Private Placement Warrants not being held in the Trust Account are
insufficient to allow us to operate for at least 24 months (or 27 months, as applicable) after the IPO Closing Date, we may be unable
to complete our initial business combination, in which case our public shareholders may only receive $10.00 per share, or less than such
amount in certain circumstances, and our warrants will expire worthless.
The
funds available to us outside of the Trust Account may not be sufficient to allow us to operate for at least 24 months (or 27 months,
as applicable) after the IPO Closing Date, assuming that our initial business combination is not completed during that time. We could
use a portion of the funds available to us to pay fees to consultants to assist us with our search for a target business. We could also
use a portion of the funds as a down payment or to fund a “no-shop” provision (a provision in letters of intent or merger
agreements 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 a letter of intent or merger agreement where we paid for the right to receive exclusivity from
a target business and were subsequently required to forfeit such funds (whether as a result of our breach or otherwise), we might not
have sufficient funds to continue searching for, or conduct due diligence with respect to, a target business. If we are unable to complete
our initial business combination, our public shareholders may receive only approximately $10.00 per share on the liquidation of our Trust
Account and our warrants will expire worthless. In certain circumstances, our public shareholders may receive less than $10.00 per share
upon our liquidation.
If
the net proceeds of our Initial Public Offering and the sale of the Private Placement Warrants not being held in the Trust Account are
insufficient to allow us to operate for at least 24 months (or 27 months, as applicable) after the IPO Closing Date, 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.
As
of December 31, 2022, we had approximately $79,000 of cash outside the Trust Account to fund our working capital requirements. In the
event that such amount is insufficient to fund our search for a target business and to consummate our initial business combination, we
may seek additional capital. On February 1, 2023, we issued the 2023 Note to TortoiseEcofin Borrower in the principal amount of $500,000.
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 $1,500,000 of such loans may be convertible
into warrants of the post-business combination entity at a price of $1.50 per warrant at the option of the lender. The warrants would
be identical to the Private Placement Warrants. 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. 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. In such an event, our public shareholders may only receive an estimated $10.00 per share, or possibly less, on our
redemption of our public shares, 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 shareholders may be less than
$10.00 per share” and other risk factors below.
Subsequent
to our completion 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 share 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 diligence will surface
all material issues in relation to a particular target business, that it would be possible to uncover all material issues through a customary
amount of due diligence, or that factors outside of the target business and outside of our control will not later arise. As a result
of these factors, we may be forced to later write-down or write-off assets, restructure our operations, or incur impairment or other
charges that could result in our reporting losses. Even if our due diligence successfully identifies certain risks, unexpected risks
may arise and previously known risks may materialize in a manner not consistent with our preliminary risk analysis. 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 shareholders who choose to remain shareholders following the business
combination could suffer a reduction in the value of their securities. Such shareholders 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 business combination contained an actionable material misstatement
or material omission.
Changes
in laws or regulations, or a failure to comply with any laws and regulations, may adversely affect our business, including our ability
to negotiate and complete our initial business combination, and results of operations.
We
are subject to laws and regulations enacted by national, regional and local governments. In particular, we are required to comply with
certain SEC and other legal requirements. 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 have a material adverse effect on our business, including our
ability to negotiate and complete our initial business combination, and results of operations.
On
March 30, 2022, the SEC issued proposed rules relating to, among other items, enhancing disclosures in business combination transactions
involving SPACs and private operating companies; amending the financial statement requirements applicable to transactions involving shell
companies; requiring incremental disclosure for projections and eliminating the Private Securities Litigation Reform Act safe harbor
for forwarding-looking statements, in each case included in SEC filings in connection with proposed business combination transactions;
increasing the potential liability of certain participants in proposed business combination transactions; and a potential safe harbor
from regulation under the Investment Company Act if SPACs meet certain requirements. These rules, if adopted, whether in the form proposed
or in revised form, may impact the involvement of target companies and other market participants, including investment banks, in the
SPAC market, may materially adversely affect our ability to identify a target company and our ability to negotiate and complete our initial
business combination and, furthermore, may materially increase the costs and time related thereto.
If we are unable to consummate our initial business combination
within 24 months (or 27 months, as applicable) of the closing of our Initial Public Offering, our public shareholders may be forced to
wait beyond such 24 months (or 27 months, as applicable) before redemption from the Trust Account.
If we are unable to consummate our initial business
combination within 24 months (or 27 months, as applicable) from the closing of our Initial Public Offering, we will distribute the aggregate
amount then on deposit in the Trust Account (less up to $100,000 of the net interest earned thereon to pay dissolution expenses), pro
rata to our public shareholders by way of redemption and cease all operations except for the purposes of winding up of our affairs, as
further described herein. Any redemption of public shareholders from the Trust Account shall be effected automatically by function of
our amended and restated memorandum and articles of association prior to any voluntary winding up. If we are required to windup, liquidate
the Trust Account and distribute such amount therein, pro rata, to our public shareholders, as part of any liquidation process, such winding
up, liquidation and distribution must comply with the applicable provisions of the Companies Act. In that case, investors may be forced
to wait beyond the initial 24 months (or 27 months, as applicable) before the redemption proceeds of the Trust Account become available
to them and they receive the return of their pro rata portion of the proceeds from the Trust Account. We have no obligation to return
funds to investors prior to the date of our redemption or liquidation unless we consummate our initial business combination prior thereto
and only then in cases where investors have sought to redeem their ordinary shares. Only upon our redemption or any liquidation will public
shareholders be entitled to distributions if we are unable to complete our initial business combination.
Because we are not limited to a particular industry, sector
or any specific target businesses with which to pursue our initial business combination, you will be unable to ascertain the merits or
risks of any particular target business’s operations.
Although we expect to focus our search for a target
business in the broad energy transition or sustainability arena targeting industries that require innovative solutions to decarbonize
in order to meet critical emission reduction objectives, we may complete a business combination with an operating company in any industry
or sector. However, we are not, under our amended and restated memorandum and articles of association, permitted to effectuate our business
combination with another blank check company or similar company with nominal operations. There is 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.
To the extent we complete our business combination, we may be affected by numerous risks inherent in the business operations with which
we combine. For example, if we combine with a financially unstable business or an entity lacking an established record of revenues or
earnings, we may be affected by the risks inherent in the business and operations of a financially unstable or a development stage 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. We also cannot assure you that an investment in our securities will ultimately prove to
be more favorable to investors than a direct investment, if such opportunity were available, in a business combination target. Accordingly,
any shareholders who choose to remain shareholders following the business combination could suffer a reduction in the value of their securities.
Such shareholders 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 business
combination contained an actionable material misstatement or material omission.
Although we have identified general criteria and guidelines
that we believe are important in evaluating prospective target businesses, we may enter into our initial 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 general criteria and
guidelines for evaluating prospective target businesses, it is possible that a target business with which we enter into our initial business
combination will not have all of these positive attributes. If we complete our initial 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. 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 shareholders 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 shareholder approval of the transaction is required by law, or we decide to obtain shareholder approval for business or other legal
reasons, it may be more difficult for us to attain shareholder 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 shareholders may
only receive their pro rata portion of the funds in the Trust Account that are available for distribution to public shareholders, and
our warrants will expire worthless.
We may seek business combination 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, cash flows or earnings or difficulty in 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 revenues, cash flows 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, cash flows or earnings 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 or from an independent accounting firm, and consequently, you may have no assurance from an independent source
that the price we are paying for the business is fair to our company from a financial point of view.
Unless we complete our business combination with
an affiliated entity, we are not required to obtain an opinion from an independent investment banking firm that is a member of FINRA or
from an independent accounting firm that the price we are paying is fair to our company from a financial point of view. If no opinion
is obtained, our shareholders 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 proxy solicitation or tender offer
materials, as applicable, related to 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. However,
our shareholders may not be provided with a copy of such opinion, nor will they be able to rely on such opinion.
We may issue additional ordinary shares or preference shares
to complete our initial business combination or under an employee incentive plan after completion of our initial business combination.
We may also issue Class A ordinary shares upon the conversion of the Class B ordinary shares at a ratio greater than one-to-one at the
time of our initial business combination as a result of the anti-dilution provisions contained in our amended and restated memorandum
and articles of association. Any such issuances would dilute the interest of our shareholders and likely present other risks.
We may issue a substantial number of additional ordinary
shares or preference shares to complete our initial business combination or under an employee incentive plan after completion of our initial
business combination. We may also issue Class A ordinary shares upon conversion of the Class B ordinary shares at a ratio greater than
one-to-one at the time of our initial business combination as a result of the anti-dilution provisions contained in our amended and restated
memorandum and articles of association. However, our amended and restated memorandum and articles of association provide, among other
things, that prior to our initial business combination, we may not issue additional ordinary shares that would entitle the holders thereof
to (i) receive funds from the Trust Account or (ii) vote on any initial business combination. These provisions of our amended and restated
memorandum and articles of association, like all provisions of our amended and restated memorandum and articles of association, may be
amended with a shareholder vote. The issuance of additional ordinary shares or preference shares:
| ● | may significantly dilute the equity interest of our investors; |
| ● | may subordinate the rights of holders of ordinary shares if preference shares are issued with rights senior to those afforded our
ordinary shares; |
| ● | could cause a change in control if a substantial number of ordinary shares 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 |
| ● | may adversely affect prevailing market prices for our Units, Class A ordinary shares and/or warrants. |
Unlike some other similarly structured blank check companies,
holders of our Founder Shares will receive additional Class A ordinary shares if we issue shares to consummate an initial business combination.
The Founder Shares will automatically convert into
Class A ordinary shares at the time of our initial business combination on a one-for-one basis, subject to adjustment for share sub-divisions,
share dividends, reorganizations, recapitalizations and the like and subject to further adjustment as provided herein. In the case that
additional Class A ordinary shares or equity-linked securities convertible or exercisable for Class A ordinary shares are issued or deemed
issued in excess of the amounts sold in our Initial Public Offering and related to the closing of our initial business combination, the
ratio at which Founder Shares will convert into Class A ordinary shares will be adjusted so that the number of Class A ordinary shares
issuable upon conversion of all Founder Shares will equal, in the aggregate 20% of the sum of our ordinary shares outstanding upon completion
of our Initial Public Offering plus the number of Class A ordinary shares and equity-linked securities issued or deemed issued in connection
with our initial business combination, excluding any Class A ordinary shares or equity-linked securities issued, or to be issued, to any
seller in our initial business combination.
Resources could be wasted in researching business combinations
that are not completed, which could materially adversely affect subsequent attempts to locate and acquire or merge with another business.
If we are unable to complete our initial business combination, our public shareholders may only receive their pro rata portion of the
funds in the Trust Account that are available for distribution to public shareholders, 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, consultants 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 complete 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. If we are unable
to complete our initial business combination, our public shareholders may only receive their pro rata portion of the funds in the Trust
Account that are available for distribution to public shareholders, and our warrants will expire worthless.
We may engage one or more of the underwriters in our Initial
Public Offering or their respective affiliates to provide additional services to us, 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 underwriters
are entitled to receive deferred commissions that will be released from the Trust Account only upon completion of an initial business
combination. These financial incentives may cause them to have potential conflicts of interest in rendering any such additional services
to us, including, for example, in connection with the sourcing and consummation of an initial business combination.
We may engage one or more of the underwriters in
our Initial Public Offering or their respective affiliates to provide additional services to us, 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 such underwriter or its affiliate fair and reasonable fees or other compensation that would be determined at that time in an arm’s
length negotiation. The underwriters are also entitled to receive deferred commissions that are conditioned on the completion of an initial
business combination. The underwriters’ or their respective affiliates’ financial interests 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.
Transactions in connection with or in anticipation of our
initial business combination and our structure thereafter may not be tax-efficient to our shareholders and warrantholders. As a result
of our business combination, our tax obligations may be more complex, burdensome and uncertain.
Although we will attempt to structure transactions
in connection with 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 anticipation of or as a result of our initial business combination and subject to requisite shareholder approval under the Companies
Act, we may enter into one or more transactions that require shareholders and/or warrantholders to recognize gain or income for tax purposes
or otherwise increase their tax burden. We do not intend to make any cash distributions to shareholders or warrantholders to pay taxes
in connection with our business combination or thereafter. Accordingly, a shareholder or a warrantholder may be required to satisfy any
liability resulting from any such transactions with cash from its own funds or by selling all or a portion of such holder’s shares
or warrants.
Furthermore, we will likely effect a business combination
with a target company that has business operations outside of the Cayman Islands and, possibly, business operations in multiple jurisdictions
and we may reincorporate in a different jurisdiction in connection therewith (including, but not limited to, the jurisdiction in which
the target company or business is located). For example, in anticipation of engaging in a business combination with certain target companies,
we may unilaterally convert into a U.S. company without notice, even if such a business combination ultimately is not achieved. If we
effect any such transaction, including such a conversion, 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 many 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. In addition,
shareholders and warrantholders may be subject to additional income, withholding or other taxes with respect to their ownership of us
after any such transaction.
We may issue notes or other debt securities, or otherwise
incur substantial debt, to complete a business combination, which may adversely affect our leverage and financial condition and thus negatively
impact the value of our shareholders’ investment in us.
We may choose to incur substantial debt to complete
our business combination. The incurrence of debt could have a variety of negative effects, including:
| ● | 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; |
| ● | our inability to obtain necessary additional financing if the debt security contains covenants restricting our ability to obtain such
financing while the debt security is outstanding; |
| ● | our inability to pay dividends on our ordinary shares; |
| ● | using 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 ordinary shares if declared, to pay expenses, make capital expenditures and acquisitions and fund 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; |
| ● | limitations on our ability to borrow additional amounts for expenses, capital expenditures, acquisitions, debt service requirements,
and execution of our strategy; and |
| ● | other disadvantages compared to our competitors who have less debt. |
We may only be able to complete one business combination
with the proceeds of our Initial Public Offering and the sale of the Private Placement Warrants, which will cause us to be solely dependent
on a single business which may have a limited number of products or services. This lack of diversification may negatively impact our operations
and profitability.
We may effectuate our business combination with a
single target business or multiple target businesses simultaneously or within a short period of time. However, we may not be able to effectuate
our business combination with more than one target business because of various factors, including 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 completing our initial business
combination with only a single entity, our lack of diversification may subject us to numerous economic, competitive and regulatory developments.
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. In addition, we intend to focus our search for an initial business combination in a single industry. Accordingly, the
prospects for our success may be:
| ● | solely dependent upon the performance of a single business, property or asset, or |
| ● | dependent 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 business combination.
We may attempt to simultaneously complete business combinations
with multiple prospective targets, which may hinder our ability to complete our business combination and give rise to increased costs
and risks that could negatively impact our operations and profitability.
If we determine to simultaneously acquire several
businesses that are owned by different sellers, we will need for each of such sellers 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
our 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, it could negatively impact our profitability and results of operations.
We may attempt to complete 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 suspected, if at all.
In pursuing our business combination strategy, we
may seek to effectuate our initial business combination with a privately held company. Very little public information generally 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 limited information, which may result in a business combination with a company that is not as profitable as we suspected,
if at all.
As the number of special purpose acquisition companies
evaluating targets increases, attractive targets may become scarcer and there may be more competition for attractive targets. This could
increase the cost of our initial business combination and could even result in our inability to find a target or to consummate an initial
business combination.
In recent years, the number of special purpose acquisition
companies that have been formed has increased substantially. Many potential targets for special purpose acquisition companies have already
entered into an initial business combination, and there are still many special purpose acquisition companies preparing for an initial
public offering, as well as many such companies currently in registration. As a result, at times, fewer attractive targets may be available
to consummate 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 targets 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 and consummate an initial business combination, and may result in our inability to consummate
an initial business combination on terms favorable to our investors altogether.
Our amended and restated memorandum and articles of association
requires the affirmative vote of a majority of our board of directors, which must include a majority of our independent directors and
each of the non-independent directors nominated by our Sponsor, to approve our initial business combination, which may have the effect
of delaying or preventing a business combination that our public shareholders would consider favorable.
Our amended and restated memorandum and articles
of association requires the affirmative vote of a majority of our board of directors, which must include a majority of our independent
directors and each of the non-independent directors nominated by our Sponsor, to approve our initial business combination. Accordingly,
it is unlikely that we will be able to enter into an initial business combination unless our Sponsor’s members find the target and
the business combination attractive. This may make it more difficult for us to approve and enter into an initial business combination
than other blank check companies and could result in us not pursuing an acquisition target or other board or corporate action that our
public shareholders would find favorable.
In order to effectuate our initial business combination,
we may seek to amend our amended and restated memorandum and articles of association or other governing instruments in a manner that will
make it easier for us to complete our initial business combination but that our shareholders and warrantholders may not support.
Amending our amended and restated memorandum and
articles of association will require at least a special resolution of our shareholders as a matter of Cayman Islands law and amending
our warrant agreement will require a vote of holders of at least 50% of the public warrants. In addition, our amended and restated memorandum
and articles of association require us to provide our public shareholders with the opportunity to redeem their public shares for cash
if we propose an amendment to our amended and restated memorandum and articles of association that would affect the substance or timing
of our obligation to redeem 100% of our public shares if we do not complete an initial business combination within 24 months (or 27 months,
as applicable) of the closing of our Initial Public Offering. To the extent any of such amendments would be deemed to fundamentally change
the nature of any of the securities offered through this registration statement, we would register, or seek an exemption from registration
for, the affected securities.
In order to effectuate a business combination, we
may amend various provisions of our amended and restated memorandum and articles of association and other governing instruments, including
the warrant agreement, the underwriting agreement relating to our Initial Public Offering, the letter agreement among us, Tortoise and
our Sponsor, officers and directors, and the registration rights agreement among us, Tortoise, our initial shareholders and the Anchor
Investors. These agreements contain various provisions that our public shareholders might deem to be material. While we do not expect
our board to approve any amendment to any of these agreements prior to our initial business combination, it may be possible that our board,
in exercising its business judgment and subject to its fiduciary duties, chooses to approve one or more amendments to any such agreement
in connection with the consummation of our initial business combination. Except in relation to the amended and restated memorandum and
articles of association, any such amendments would not require approval from our shareholders and may have an adverse effect on the value
of an investment in our securities. We cannot assure you that we will not seek to amend our amended and restated memorandum and articles
of association or other governing instruments or change our industry focus in order to effectuate our initial business combination.
Other than amendments relating to the appointment or removal
of directors prior to our initial business combination (which require the approval of a majority of at least 90% of our ordinary shares
voting at a general meeting), the provisions of our amended and restated memorandum and articles of association that relate to our pre-business
combination activity (and corresponding provisions of the agreement governing the release of funds from our Trust Account) may be amended
with the approval of holders of at least two-thirds of our ordinary shares who attend and vote at a general meeting, 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
memorandum and articles of association and the trust agreement to facilitate the completion of an initial business combination that some
of our shareholders may not support.
Some other blank check companies have a provision
in their charter which prohibits the amendment of certain of its provisions, including those which relate to a company’s pre-business
combination activity, without approval by a certain percentage of the company’s shareholders. In those companies, amendment of these
provisions requires approval by between 90% and 100% of the company’s public shareholders. Our amended and restated memorandum and
articles of association provides that any of its provisions (other than amendments relating to the appointment or removal of directors
prior to our initial business combination, which require the approval of a majority of at least 90% of our ordinary shares voting at a
general meeting) related to pre-business combination activity (including the requirement to deposit proceeds of our Initial Public Offering
and the sale of the private placement of warrants into the Trust Account and not release such amounts except in specified circumstances,
and to provide redemption rights to public shareholders as described herein) may be amended if approved by holders of at least two-thirds
of our ordinary shares who attend and vote in a general meeting, and corresponding provisions of the trust agreement governing the release
of funds from the Trust Account may be amended if approved by holders of at least two-thirds of our ordinary shares who attend and vote
in a general meeting. The Founder Shares held by the holders thereof (including our Sponsor and the Anchor Investors who acquired Founder
Shares from our Sponsor in connection with our Initial Public Offering) represent 20% of our outstanding ordinary shares, and such holders
will participate in any vote to amend our amended and restated memorandum and articles of association 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
memorandum and articles of association which govern our pre-business combination behavior more easily than some other blank check companies,
and this may increase our ability to complete a business combination with which you do not agree. Our shareholders may pursue remedies
against us for any breach of our amended and restated memorandum and articles of association.
Our Sponsor, officers, directors and director nominees
have agreed, pursuant to a written agreement with us, that they will not propose any amendment to our amended and restated memorandum
and articles of association that would affect the substance or timing of our obligation to redeem 100% of our public shares if we have
not consummated an initial business combination within 24 months (or 27 months, as applicable) from the closing of our Initial Public
Offering, unless we provide our public shareholders with the opportunity to redeem their Class A ordinary 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 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. These agreements are contained in a letter agreement, which is filed as Exhibit 10.1 to this Annual Report on Form 10-K,
that we have entered into with Tortoise and our Sponsor, officers, directors and director nominees. Our shareholders are not parties to,
or third-party beneficiaries of, these agreements and, as a result, will not have the ability to pursue remedies against Tortoise and
our Sponsor, officers, directors or director nominees for any breach of these agreements. As a result, in the event of a breach, our shareholders
would need to pursue a shareholder 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 shareholders may only receive
their pro rata portion of the funds in the Trust Account that are available for distribution to public shareholders, and our warrants
will expire worthless.
If the net proceeds of our Initial Public Offering
and the sale of the Private Placement Warrants prove to be insufficient, either because of the size of our initial business combination,
the depletion of the available net proceeds in search of a target business, the obligation to redeem for cash a significant number of
shares from shareholders 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 cannot assure you that such financing will be available on acceptable terms, if at all. To the extent
that additional financing proves to be unavailable when needed to complete our initial business combination, we would be compelled to
either restructure the transaction or abandon that particular business combination and seek an alternative target business candidate.
If we are unable to complete our initial business combination, our public shareholders may only receive their pro rata portion of the
funds in the Trust Account that are available for distribution to public shareholders, and our warrants will expire worthless. In addition,
even if we do not need additional financing to complete our 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 shareholders is required to provide any financing to us in connection
with or after our business combination.
Holders of our Founder Shares control the appointment of
our board of directors until consummation of our initial business combination and hold a substantial interest in us. As a result, they
will appoint and remove all of our directors prior to our initial business combination and may exert a substantial influence on actions
requiring a shareholder vote, potentially in a manner that you do not support.
The Founder Shares held by the holders thereof (including
our Sponsor and the Anchor Investors who acquired Founder Shares from our Sponsor in connection with our Initial Public Offering) represent
20% of our issued and outstanding ordinary shares. In addition, the Founder Shares, all of which are held by our initial shareholders
and the Anchor Investors, will entitle the holders to appoint and remove all of our directors prior to our initial business combination.
In respect of any vote or votes to continue the company in a jurisdiction outside the Cayman Islands (including, but not limited to, the
approval of the organizational documents of the company in such other jurisdiction), which requires the approval of at least two-thirds
of the votes of all ordinary shares, holders of our Founder Shares are entitled to ten votes for every Founder Share. Holders of our public
shares will have no right to vote on the appointment or removal of directors during such time. These provisions of our amended and restated
memorandum and articles of association may only be amended by a special resolution passed by a majority of at least 90% of our ordinary
shares voting in a general meeting. As a result, you will not have any influence over the appointment or removal of directors prior to
our initial business combination. Accordingly, holders of our Founder Shares may exert a substantial influence on actions requiring a
shareholder vote, potentially in a manner that you do not support, including amendments to our amended and restated memorandum and articles
of association and approval of major corporate transactions. In addition, our board of directors, whose members were elected by our initial
shareholders, is and will be divided into three classes, each of which will generally serve for a term of three years with only one class
of directors being elected in each year. We may not hold an annual general meeting to appoint new directors prior to the completion of
our business combination, in which case all of the current directors will continue in office until at least the completion of the business
combination. If there is an annual general meeting, as a consequence of our “staggered” board of directors, only a minority
of the board of directors will be considered for appointment and holders of our Founder Shares, because of their ownership position, will
have considerable influence regarding the outcome. Accordingly, holders of our Founder Shares will continue to exert control at least
until the completion of our business combination.
A provision of our warrant agreement may make it more difficult
for us to consummate an initial business combination.
Unlike most blank check companies, if we issue additional
ordinary shares or equity-linked securities for capital raising purposes in connection with the closing of our initial business combination
at a newly issued price of less than $9.20 per ordinary share, then the exercise price of the warrants will be adjusted to equal 115%
of the newly issued price. This may make it more difficult for us to consummate an initial business combination with a target business.
Our warrants are accounted for as derivative liabilities
and were recorded at fair value upon issuance with changes in fair value each period reported in earnings, which may have an adverse effect
on the market price of our ordinary shares or may make it more difficult for us to consummate an initial business combination.
We accounted for both the warrants underlying the
Units and the Private Placement Warrants as a warrant liability. At each reporting period (1) the accounting treatment of the warrants
will be re-evaluated for proper accounting treatment as a liability or equity and (2) the fair value of the liability of the public and
Private Placement Warrants will be remeasured and the change in the fair value of the liability will be recorded as other income (expense)
in our income statement. The impact of changes in fair value on earnings may have an adverse effect on the market price of our ordinary
shares. In addition, potential targets may seek special purpose acquisition companies that do not have warrants that are accounted for
as a liability, which may make it more difficult for us to consummate an initial business combination with a target business.
Our warrant agreement designates 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 warrantholders to obtain
a favorable judicial forum for disputes with our company.
Our warrant agreement provides 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. 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.
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. 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. 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 of 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 (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 (an “enforcement action”),
and (y) having service of process made upon such warrantholder in any such enforcement action by service upon such warrantholder’s
counsel in the foreign action as agent for such warrantholder.
This choice-of-forum provision may 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.
Because we must furnish our shareholders with target business
financial statements, we may lose the ability to complete an otherwise advantageous initial business combination with some prospective
target businesses.
The federal proxy rules require that a proxy statement
with respect to a vote on a business combination meeting certain financial significance tests include target historical and/or pro forma
financial statement disclosure. We will include the same financial statement disclosure in connection with our tender offer documents,
whether or not they are required under the tender offer rules. These financial statements may be required to be prepared in accordance
with, or be reconciled to, U.S. 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 target
businesses we may acquire because some targets may be unable to provide such financial statements in time for us to disclose such financial
statements in accordance with federal proxy rules and complete our initial business combination within the prescribed time frame.
If we pursue a target business 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 an initial business combination, we would be subject to a variety
of additional risks that may negatively impact our operations.
If we pursue a target 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 special considerations or risks associated with companies operating in an international setting,
including any of the following:
| ● | higher costs and difficulties inherent in executing cross-border transactions, managing cross-border business operations and complying
with different commercial and legal requirements of overseas markets; |
| ● | rules and regulations regarding currency redemption; |
| ● | 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; |
| ● | tax issues, including complex withholding or other tax regimes which may apply in connection with our business combination or to our
structure following our business combination, variations in tax laws as compared to the United States, and potential changes in the applicable
tax laws in the United States and/or relevant non-U.S. jurisdictions; |
| ● | currency fluctuations and exchange controls; |
| ● | challenges in collecting accounts receivable; |
| ● | cultural and language differences; |
| ● | underdeveloped or unpredictable legal or regulatory systems; |
| ● | protection of intellectual property; |
| ● | social unrest, crime, strikes, riots and civil disturbances; |
| ● | regime changes and political upheaval; |
| ● | terrorist attacks, natural disasters and wars; |
| ● | deterioration of political relations with the United States; and |
| ● | government appropriation of assets. |
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 combination,
our operations might suffer, either of which may adversely impact our business, financial condition and results of operations.
After our initial business combination, substantially all
of our assets may be located in a foreign country and substantially all of our revenue will be derived from our operations in such country.
Accordingly, our results of operations and prospects will be subject, to a significant extent, to the economic, political and legal policies,
developments and conditions in the country in which we operate.
The economic, political and social conditions, as
well as government policies, of the country in which our operations are located could affect our business. Economic growth could be uneven,
both geographically and among various sectors of the economy and such growth may not be sustained in the future. If in the future such
country’s economy experiences a downturn or grows at a slower rate than expected, there may be less demand for spending in certain
industries. A decrease in demand for spending in certain industries could materially and adversely affect our ability to find an attractive
target business with which to consummate our initial business combination and if we effect our initial business combination, the ability
of that target business to become profitable.
Exchange rate fluctuations and currency policies may cause
a target business’ ability to succeed in the international markets to be diminished.
In the event we acquire a non-U.S. target, all revenues
and income would likely be received in a foreign currency, and the dollar equivalent of our net assets and distributions, if any, could
be adversely affected by reductions in the value of the local currency. The value of the currencies in non-U.S. regions fluctuates and
is affected by, among other things, changes in political and economic conditions. Any change in the relative value of such currency against
our reporting currency may affect the attractiveness of any target business or, following consummation of our initial business combination,
our financial condition and results of operations. Additionally, if a currency appreciates in value against the dollar prior to the consummation
of our initial business combination, the cost of a target business as measured in dollars will increase, which may make it less likely
that we are able to consummate such transaction.
If we acquire a non-U.S. target, our results of operations
may be negatively impacted because of the costs and difficulties inherent in managing cross-border business operations.
We may pursue a target company with operations or
opportunities outside of the United States for our initial business combination. Managing a business, operations, personnel or assets
in another country is challenging and costly. Any management that we may have (whether based abroad or in the U.S.) may be inexperienced
in cross-border business practices and unaware of significant differences in accounting rules, legal regimes and labor practices. Even
with a seasoned and experienced management team, the costs and difficulties inherent in managing cross-border business operations, personnel
and assets can be significant (and much higher than in a purely domestic business) and may negatively impact our financial and operational
performance.
If social unrest, acts of terrorism, regime changes, changes
in laws and regulations, political upheaval or policy changes or enactments occur in a country in which we may operate after we effect
our initial business combination, it may result in a negative impact on our business.
In the event we acquire a non-U.S. target, political
events in another country may significantly affect our business, assets or operations. Social unrest, acts of terrorism, regime changes,
changes in laws and regulations, political upheaval, and policy changes or enactments could negatively impact our business in a particular
country.
We may reincorporate in another jurisdiction in connection
with our initial business combination, and the laws of such jurisdiction may govern some or all of our future material agreements and
we may not be able to enforce our legal rights.
In connection with our initial business combination,
we may relocate the home jurisdiction of our business from the Cayman Islands to another jurisdiction. If we determine to do this, the
laws of such jurisdiction may govern some or all of our future material agreements. The system of laws and the enforcement of existing
laws in such jurisdiction may not be as certain in implementation and interpretation as in the United States. The inability to enforce
or obtain a remedy under any of our future agreements could result in a significant loss of business, business opportunities or capital.
Risks Relating to our Securities
You will not have any rights or interests in funds from
the Trust Account, except under certain limited circumstances. Therefore, to liquidate your investment, you may be forced to sell your
public shares or warrants, potentially at a loss.
Our public shareholders will be entitled to receive
funds from the Trust Account only upon the earliest to occur of: (i) the redemption of any public shares properly submitted in connection
with our completion of an initial business combination (including the release of funds to pay any amounts due to any public shareholders
who properly exercise their redemption rights in connection therewith), (ii) the redemption of any public shares properly submitted in
connection with a shareholder vote to approve an amendment to our amended and restated memorandum and articles of association that would
modify the substance or timing of our obligation to redeem 100% of our public shares if we have not consummated an initial business combination
within 24 months (or 27 months, as applicable) from the closing of our Initial Public Offering, and (iii) the redemption of our public
shares if we are unable to complete an initial business combination within 24 months (or 27 months, as applicable) from the closing of
our Initial Public Offering, subject to applicable law and as further described herein. In no other circumstances will a public shareholder
have any right or interest of any kind in the Trust Account. Holders of warrants will not have any right to the proceeds held in the Trust
Account with respect to the warrants. Accordingly, to liquidate your investment, you may be forced to sell your public shares or warrants,
potentially at a loss.
The NYSE may delist our securities from trading on its
exchange, which could limit investors’ ability to make transactions in our securities and subject us to additional trading restrictions.
We cannot assure you that our securities will continue
to be listed on the NYSE in the future or prior to our initial business combination. In order to continue listing our securities on the
NYSE prior to our initial business combination, we must maintain certain financial, distribution and share price levels. Generally, we
must maintain a minimum number of holders of our securities (generally 300 round lot holders).
Additionally, in connection with our initial business
combination, we will be required to demonstrate compliance with the NYSE’s initial listing requirements, which are more rigorous
than the NYSE’s continued listing requirements, in order to continue to maintain the listing of our securities on the NYSE. For
instance, our share price would generally be required to be at least $4.00 per share, our aggregate market value would be required to
be at least $100 million, and the market value of our publicly-held shares would be required to be at least $80 million. We cannot assure
you that we will be able to meet those initial listing requirements at that time.
If the NYSE 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:
| ● | a limited availability of market quotations for our securities; |
| ● | reduced liquidity for our securities; |
| ● | a determination that our Class A ordinary shares are a “penny stock” which will require brokers trading in our Class A
ordinary shares to adhere to more stringent rules and possibly result in a reduced level of trading activity in the secondary trading
market for our securities; |
| ● | a limited amount of news and analyst coverage; and |
| ● | a decreased ability to issue additional securities or obtain additional financing in the future. |
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 our Units, Class A ordinary shares and public warrants are listed on the NYSE, our Units,
Class A ordinary shares and public warrants qualify as covered securities under the statute. 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 the NYSE, our securities would not be covered securities under the statute and we would be subject to regulation in each state
in which we offer our securities.
You will not be entitled to protections normally afforded
to investors of many other blank check companies.
Because we have net tangible assets in excess of
$5,000,000 and timely filed 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 (“Rule 419”).
Accordingly, investors will not be afforded the benefits or protections of those rules. Among other things, this means we will have a
longer period of time to complete our business combination than do companies subject to Rule 419. Moreover, if our Initial Public Offering
were subject to Rule 419, that rule would prohibit the release of any interest earned on funds held in the Trust Account to us unless
and until the funds in the Trust Account were released to us in connection with our completion of an initial business combination.
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 shareholders may be less than $10.00 per share.
Our placing of 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 (other than our independent
registered public accounting firm), prospective target businesses and 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
shareholders, 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, 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. Making such a request of potential target businesses may make our acquisition
proposal less attractive to them and, to the extent prospective target businesses refuse to execute such a waiver, it may limit the field
of potential target businesses that we might pursue.
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. 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 our initial business combination within the prescribed timeframe, or upon the exercise of a redemption right in connection with
our 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 shareholders could be less
than the $10.00 per public share initially held in the Trust Account, due to claims of such creditors. Our Sponsor has agreed that it
will be liable to us if and to the extent any claims by a third party (other than our independent public accountants) for services rendered
or products sold to us, or a prospective target business with which we have entered into a written letter of intent, confidentiality or
other similar agreement or business combination agreement, reduce the amount of funds in the Trust Account to below the lesser of (i)
$10.00 per public share and (ii) the actual amount per public share held in the Trust Account, if less than $10.00 per share due to reductions
in the value of the trust assets as of the date of the liquidation of the Trust Account, in each case including interest earned on the
funds held in the Trust Account and not previously released to us to pay our taxes, provided that such liability will not apply to any
claims by a third party or prospective target business who executed a waiver of any and all rights to the monies held in the Trust Account
(whether or not such waiver is enforceable) nor will it apply to any claims under our indemnity of the underwriters of our Initial Public
Offering against certain liabilities, including liabilities under the Securities Act. However, we have not asked our Sponsor to reserve
for such indemnification obligations, nor have we independently verified whether our Sponsor has sufficient funds to satisfy its indemnity
obligations and we believe that our Sponsor’s only assets are securities of our company. Therefore, we cannot assure you that our
Sponsor would be able to satisfy those obligations. As a result, if any such claims were successfully made against the Trust Account,
the funds available for our initial business combination and redemptions could be reduced to less than $10.00 per public share. In such
event, we may not be able to complete our initial business combination, and you would receive such lesser amount per share in connection
with any redemption of your public shares. None of our officers or directors will indemnify us for claims by third parties including,
without limitation, claims by vendors and prospective target businesses.
Our directors may decide not to enforce the indemnification
obligations of our Sponsor, resulting in a reduction in the amount of funds in the Trust Account available for distribution to our public
shareholders.
In the event that the proceeds in the Trust Account
are reduced below the lesser of (i) $10.00 per public share and (ii) the actual amount per public share held in the Trust Account as of
the date of the liquidation of the Trust Account, if less than $10.00 per share due to reductions in the value of the trust assets, in
each case including interest earned on the funds held in the Trust Account and not previously released to us to pay our taxes, and our
Sponsor 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 our Sponsor to enforce its indemnification obligations.
While we currently expect that our independent directors
would take legal action on our behalf against our Sponsor to enforce its indemnification obligations to us, it is possible that our independent
directors in exercising their business judgment, and subject where relevant 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 shareholders may be reduced below $10.00 per share.
We may not have sufficient funds to satisfy indemnification
claims of our directors and officers or our Sponsor and its members (present and former), managers and affiliates and their respective
present and former officers and directors.
We have agreed to indemnify our officers and directors,
and our Sponsor and its members (present and former), managers and affiliates and their respective present and future officers and directors,
to the fullest extent permitted by law. However, our officers and directors, and our Sponsor and its members (present and former), managers
and affiliates and their respective present and future officers and directors, have agreed, and any persons who may become officers or
directors prior to the initial business combination will agree, 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 indemnification obligations may discourage shareholders 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 shareholders. Furthermore,
a shareholder’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 shareholders, we file a winding up petition or a winding up petition is filed against us that is not dismissed, a liquidator
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 potentially 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 shareholders, we file a winding up petition or a winding up petition is filed against us that is not dismissed,
any distributions received by shareholders could be viewed under applicable debtor/creditor and/or insolvency laws as a “voidable
preference”. As a result, a liquidator could seek to challenge the transaction and recover some or all amounts received by our shareholders.
In addition, 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 of punitive damages, by paying public shareholders from the Trust Account prior to addressing
the claims of creditors.
If, before distributing the proceeds in the Trust Account
to our public shareholders, we file a winding up petition or a winding up petition is filed against us that is not dismissed, the claims
of creditors in such proceeding may have priority over the claims of our shareholders and the per-share amount that would otherwise be
received by our shareholders in connection with our liquidation may be reduced.
If, before distributing the proceeds in the Trust
Account to our public shareholders, we file a winding up petition or a winding up petition is filed against us that is not dismissed,
the proceeds held in the Trust Account could be subject to applicable insolvency law, and may be included in our liquidation estate and
subject to the claims of third parties with priority over the claims of our shareholders. To the extent any liquidation claims deplete
the Trust Account, the per-share amount that would otherwise be received by our shareholders in connection with our liquidation may be
reduced.
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 business combination.
If we are deemed to be an investment company under
the Investment Company Act, our activities may be restricted, including:
| ● | restrictions on the nature of our investments; and |
| ● | restrictions on the issuance of securities, each of which may make it difficult for us to complete our business combination. |
In addition, we may have imposed upon us burdensome
requirements, including:
| ● | registration as an investment company; |
| ● | adoption of a specific form of corporate structure; and |
| ● | reporting, record keeping, voting, proxy and disclosure requirements and other rules and regulations. |
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 assets (exclusive of U.S. government securities and cash
items) on an unconsolidated basis. Our business will be to identify and complete a 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. The Trust Account is intended as a holding place for funds pending the earliest to occur of: (i) the completion of our initial business
combination; (ii) the redemption of any public shares properly submitted in connection with a shareholder vote to approve an amendment
to our amended and restated memorandum and articles of association that would affect the substance or timing of our obligation to redeem
100% of our public shares if we have not consummated an initial business combination within 24 months (or 27 months, as applicable) from
the closing of our Initial Public Offering; and (iii) the redemption of our public shares if we are unable to complete our initial business
combination within 24 months (or 27 months, as applicable) from the closing of our Initial Public Offering, subject to applicable law.
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 complete a business combination, or may result in our liquidation. If we are
unable to complete our initial business combination, our public shareholders may only receive their pro rata portion of the funds in the
Trust Account that are available for distribution to public shareholders, and our warrants will expire worthless.
Our shareholders may be held liable for claims by third
parties against us to the extent of distributions received by them upon redemption of their shares.
If we are forced to enter into an insolvent liquidation,
any distributions received by shareholders could be viewed as an unlawful payment if it was proved that immediately following the date
on which the distribution was made, we were unable to pay our debts as they fall due in the ordinary course of business. As a result,
a liquidator could seek to recover some or all amounts received by our shareholders. Furthermore, our directors may be viewed as having
breached their fiduciary duties to us or our creditors and/or may have acted in bad faith, thereby exposing themselves and our company
to claims, by paying public shareholders 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. We and our directors and officers who knowingly and willfully authorized or permitted
any distribution to be paid out of our share premium account while we were unable to pay our debts as they fall due in the ordinary course
of business would be guilty of an offence and may be liable to a fine and to imprisonment in the Cayman Islands or both. We may not hold
an annual general meeting until after the consummation of our initial business combination, which could delay the opportunity for our
shareholders to appoint directors.
We may not hold an annual general meeting until after the
consummation of our initial business combination, which could delay the opportunity for our shareholders to appoint directors.
In accordance with the NYSE corporate governance
requirements, we are not required to hold an annual general meeting until no later than one year after our first fiscal year end following
our listing on the NYSE. There is no requirement under the Companies Act for us to hold annual or general meetings to appoint directors.
Until we hold an annual general meeting, public shareholders may not be afforded the opportunity to appoint directors and to discuss company
affairs with management. Our board of directors is divided into three 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 general meeting) serving a three-year term.
A registration statement covering the Class A ordinary
shares issuable upon exercise of the warrants may not be in place and current 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.
Under the terms of the warrant agreement governing
the terms of our warrants, we will use our commercially reasonable efforts to maintain the effectiveness of a registration statement registering
the Class A ordinary shares issuable upon exercise of the warrants, and a current prospectus relating thereto, until the expiration or
redemption 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 our Class A ordinary shares are 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, but
we will be required to 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 the Securities
Act or applicable state securities laws, and there is no exemption 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 ordinary shares included in the Units. 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
Class A ordinary shares for sale under all applicable state securities laws.
The grant of registration rights to our initial shareholders
and the Anchor Investors may make it more difficult to complete our initial business combination, and the future exercise of such rights
may adversely affect the market price of our Class A ordinary shares.
Pursuant to an agreement entered into in connection
with our Initial Public Offering, we have agreed with our initial shareholders, Tortoise and the Anchor Investors to register the Class
A ordinary shares into which Founder Shares are convertible, the Private Placement Warrants and the Class A ordinary shares issuable upon
the exercise of the Private Placement Warrants, any Class A ordinary shares held upon the completion of our Initial Public Offering or
acquired prior to or in connection with our initial business combination and warrants that may be issued upon conversion of working capital
loans or the Class A ordinary shares issuable upon the exercise of such warrants.
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 have an adverse effect
on the market price of our Class A ordinary shares. In addition, the existence of the registration rights may make our initial business
combination more costly or difficult to conclude. This is because the shareholders 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 ordinary
shares that is expected when the securities owned by our initial shareholders, Tortoise or their respective permitted transferees are
registered.
We may be treated as a passive foreign investment company
(“PFIC”), which could result in adverse U.S. federal income tax consequences to U.S. investors.
If we are treated as a PFIC for any taxable year
(or portion thereof) in which a U.S. Holder holds our Class A ordinary shares or warrants (regardless of whether we remain a PFIC for
subsequent taxable years), such U.S. Holder may be subject to certain adverse U.S. federal income tax consequences and may be subject
to additional reporting requirements. Our PFIC status for our current and subsequent taxable years may depend on, among other things,
whether we qualify for the PFIC start-up exception, the timing of our business combination, the amount of our passive income and assets
in the year of the business combination, whether we combine with a U.S. or non-U.S. target company, and the amount of passive income and
assets of the acquired business. Our actual PFIC status for our current taxable year or any subsequent taxable year will not be determinable
until after the end of such taxable year (and, in the case of our start-up year, possibly not until after the close of the second taxable
year following our start-up year). We cannot assure you that we will not be a PFIC in our current taxable year or in any future taxable
year.
If we determine we are a PFIC for any taxable year,
upon written request by a U.S. Holder, we will endeavor to provide to such U.S. Holder such information as the Internal Revenue Service
(the “IRS”) may require, including a PFIC annual information statement, in order to enable such U.S. Holder to make and maintain
a “qualified electing fund” (“QEF”) election with respect to its Class A ordinary shares, but there is no assurance
that we will timely provide such required information. Furthermore, a U.S. Holder may not make a QEF election with respect to its warrants
to acquire our Class A ordinary shares. The rules dealing with PFICs and with the QEF election are very complex and are affected by various
factors in addition to those described in this prospectus. Accordingly, U.S. investors are strongly urged to consult with and rely solely
upon their own tax advisors regarding the application of the PFIC rules to them in their particular circumstances.
An investment in our Class A ordinary shares, and certain
subsequent transactions with respect to our Class A ordinary shares, may result in uncertain or adverse U.S. federal income tax consequences.
An investment in our Class A ordinary shares, and
certain subsequent transactions with respect to our Class A ordinary shares, may result in uncertain or adverse U.S. federal income tax
consequences. For instance, it is unclear whether the redemption rights with respect to our Class A ordinary shares 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 Class A ordinary shares is long-term capital gain or loss and for determining whether any dividend we pay would be eligible for favorable
U.S. federal income tax treatment. Each prospective investor is urged to consult with and rely solely upon its own tax advisors with respect
to these and other tax consequences when purchasing, holding or disposing of our Class A ordinary shares.
The U.S. federal income tax treatment of the redemption
of Class A ordinary shares as a sale of such Class A ordinary shares depends on a shareholder’s specific facts.
The U.S. federal income tax treatment of a redemption
of Class A ordinary shares will depend on whether the redemption qualifies as a sale of such Class A ordinary shares under Section 302(a)
of the Code, which will depend largely on the total number of ordinary shares treated as held by the shareholder electing to redeem Class
A ordinary shares relative to all of the ordinary shares outstanding before and after the redemption. If such redemption is not treated
as a sale of Class A ordinary shares for U.S. federal income tax purposes, the redemption will instead be treated as a corporate distribution.
We do not have a specified maximum redemption threshold.
The absence of such a redemption threshold may make it possible for us to complete a business combination with which a substantial majority
of our shareholders do not agree.
Our amended and restated memorandum and articles
of association does not provide a specified maximum redemption threshold, except 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
after payment of underwriters’ fees and commission (such that we are not subject to the SEC’s “penny stock” rules).
As a result, we may be able to complete our business combination even though a substantial majority of our public shareholders do not
agree with the transaction and have redeemed their shares or, if we seek shareholder approval of our initial business combination and
do not conduct redemptions in connection with our business combination pursuant to the tender offer rules, have entered into privately
negotiated agreements to sell their shares to our Sponsor, officers, directors, advisors or any of their affiliates. In the event the
aggregate cash consideration we would be required to pay for all Class A ordinary shares that are validly submitted for redemption plus
any amount required to satisfy cash conditions pursuant to the terms of the proposed business combination exceed the aggregate amount
of cash available to us, we will not complete the business combination or redeem any shares, all Class A ordinary shares submitted for
redemption will be returned to the holders thereof, and we instead may search for an alternate business combination.
We may amend the terms of the warrants in a manner that
may be adverse to holders of public warrants with the approval by the holders of at least 50% of the then outstanding public warrants.
As a result, the exercise price of your warrants could be increased, the warrant could be converted into cash or shares (at a ratio different
than initially provided), the exercise period could be shortened and the number of our Class A ordinary shares purchasable upon exercise
of a warrant could be decreased, all without your approval.
Our warrants are 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 50% 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 in a manner adverse
to a holder if holders of at least 50% of the then outstanding public warrants approve of such amendment. Although our 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 (at a ratio different than initially provided), shorten the exercise period or decrease the number of our Class A ordinary shares
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
at any time after they become exercisable and prior to their expiration, at a price of $0.01 per warrant, provided that the last reported
sales price of our Class A ordinary shares equals or exceeds $18.00 per share (as adjusted for share sub-divisions, share dividends, reorganizations,
recapitalizations and the like) for any 20 trading days within a 30 trading-day period ending on the third trading day prior to the date
on which we give proper notice of such redemption and provided certain other conditions are met. 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. 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. None of the Private Placement
Warrants will be redeemable by us for cash so long as they are held by Tortoise or its permitted transferees.
In addition, we may redeem your warrants after they
become exercisable for a number of Class A ordinary shares determined based on the redemption date and the fair market value of our Class
A ordinary shares. Any such redemption may have similar consequences to a cash redemption described above. In addition, such redemption
may occur at a time when the warrants are “out-of-the-money,” in which case, you would lose any potential embedded value from
a subsequent increase in the value of the Class A ordinary shares had your warrants remained outstanding.
Our ability to require holders of our warrants to exercise
such warrants on a cashless basis after we call the warrants for redemption or if there is no effective registration statement covering
the Class A ordinary shares issuable upon exercise of these warrants will cause holders to receive fewer Class A ordinary shares upon
their exercise of the warrants than they would have received had they been able to pay the exercise price of their warrants in cash.
If our Class A ordinary shares are at the time of
any exercise of a warrant not listed on a national securities exchange such that our Class A ordinary shares 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, but we will be required to use our commercially
reasonable efforts to register or qualify the shares under applicable blue sky laws to the extent an exemption is not available. “Cashless
exercise” means the warrant holder pays the exercise price by giving up some of the shares for which the warrant is being exercised,
with those shares valued at the then current market price. To exercise warrants on a cashless basis, each holder would pay the exercise
price by surrendering the warrants in exchange for a number of Class A ordinary shares equal to the quotient obtained by dividing (x)
the product of (A) the number of Class A ordinary shares underlying the warrants and (B) the difference between the exercise price of
the warrants and the “fair market value” by (y) such fair market value. The “fair market value” shall mean the
average reported last sale price of the Class A ordinary shares for the 10 trading days ending on the third trading day prior to the date
on which the notice of redemption is sent to the holders of warrants.
In addition, if a registration statement covering
the Class A ordinary shares issuable upon exercise of the warrants is not effective within a specified period following the consummation
of our initial business transaction, 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. For purposes
of calculating the number of shares issuable upon such cashless exercise, the “fair market value” of warrants shall be calculated
using the volume weighted average sale price of the Class A ordinary shares for the 10 trading days ending on the trading day prior to
the date on which notice of exercise is received by the warrant agent.
If we choose to require holders to exercise their
warrants on a cashless basis, which we may do at our sole discretion, or if holders elect to do so when there is no effective registration
statement, the number of Class A ordinary shares received by a holder upon exercise will be fewer than it would have been had such holder
exercised his or her warrant for cash. For example, if the holder is exercising 875 public warrants at $11.50 per share through a cashless
exercise when the Class A ordinary shares have a fair market value per share of $17.50 per share, then upon the cashless exercise, the
holder will receive 300 Class A ordinary shares. The holder would have received 875 Class A ordinary shares if the exercise price was
paid in cash. This will have the effect of reducing the potential “upside” of the holder’s investment in our company
because the warrant holder will hold a smaller number of Class A ordinary shares upon a cashless exercise of the warrants they hold.
Our warrants and Founder Shares may have an adverse effect
on the market price of our Class A ordinary shares and make it more difficult to effectuate our business combination.
We issued warrants to purchase 8,625,000 Class A
ordinary shares as part of the Units. We also issued 6,933,333 Private Placement Warrants, each exercisable to purchase one Class A ordinary
share at $11.50 per share.
Our initial shareholders currently own an aggregate
of 6,975,000 Founder Shares. The Founder Shares are convertible into Class A ordinary shares on a one-for-one basis, subject to adjustment
for share sub-divisions, share dividends, reorganizations, recapitalizations and the like and subject to further adjustment as set forth
herein. In addition, if our Sponsor makes any working capital loans, it may convert those loans into up to an additional 1,000,000 Private
Placement Warrants, at the price of $1.50 per warrant. To the extent we issue Class A ordinary shares to effectuate a business combination,
the potential for the issuance of a substantial number of additional Class A ordinary shares 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 our Class A ordinary shares and reduce the value of the Class A ordinary shares 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.
Because each Unit contains one-fourth of one redeemable
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-fourth of one redeemable warrant.
Pursuant to the warrant agreement, no fractional warrants will be issued upon separation of the Units, and only whole warrants will trade.
This is different from other blank check companies similar to ours whose units include one Class A ordinary share 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-fourth of the number of shares compared
to units that each contain a whole warrant to purchase one share, thus making us, we believe, a more attractive merger 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.
The securities in which we invest the funds held in the
Trust Account could bear a negative rate of interest, which could reduce the value of the assets held in trust such that the per-share
redemption amount received by public shareholders may be less than $10.00 per share.
The proceeds held in the Trust Account may be invested
only in U.S. government treasury obligations 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. government
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 that we are unable to
complete our initial business combination or make certain amendments to our amended and restated memorandum and articles of association,
our public shareholders are entitled to receive their pro-rata share of the proceeds held in the Trust Account, plus any interest income
not released to us, net of taxes payable (less, in the event we are unable to complete our initial business combination, up to $100,000
of interest to pay dissolution expenses). Negative interest rates could reduce the value of the assets held in trust such that the per-share
redemption amount received by public shareholders may be less than $10.00 per share.
Risks Relating to our Sponsor and Management
Team
Past performance by our management team, Tortoise Acquisition
II, Tortoise Acquisition I, Tortoise, the Tortoise Funds, Lightfoot Capital, and by companies affiliated with celebrities or public figures,
and any related investment may not be indicative of future performance of an investment in us.
Information regarding performance by, or businesses
associated with, our management team, Tortoise Acquisition II, Tortoise Acquisition I, Tortoise, the Tortoise Funds, Lightfoot Capital
and any related investment is presented for informational purposes only. Past performance by our management team, Tortoise Acquisition
II, Tortoise Acquisition I, Tortoise, the Tortoise Funds, Lightfoot Capital and any related investment 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. Additionally, the involvement of a celebrity or public figure in any business venture does not guarantee
success with respect to any business combination we may consummate or 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, Tortoise Acquisition II, Tortoise Acquisition
I, Tortoise, the Tortoise Funds, Lightfoot Capital and any related investment’s performance as indicative of our future performance
or of an investment in us or the returns we will, or are likely to, generate going forward.
We may seek acquisition opportunities outside of our target
industries or sectors (which industries or sectors may or may not be outside of our management’s areas of expertise).
Although we intend to focus on identifying business
combination candidates in the broad energy transition or sustainability arena targeting industries that require innovative solutions to
decarbonize in order to meet critical emission reduction objectives, we will consider a business combination outside of our target industries
or sectors if a business combination candidate is presented to us and we determine that such candidate offers an attractive acquisition
opportunity for our company or we are unable to identify a suitable candidate in our target industries or sectors after having expended
a reasonable amount of time and effort in an attempt to do so. Although our management will endeavor to evaluate the risks inherent in
any particular business combination candidate, we cannot assure you that we will adequately ascertain or assess all of the significant
risk factors. We also cannot assure you that an investment in our securities will not ultimately prove to be less favorable than a direct
investment, if an opportunity were available, in a business combination candidate. In the event we elect to pursue an acquisition outside
of our target industries or sectors, our management’s expertise may not be directly applicable to its evaluation or operation, and
the information contained in this Annual Report on Form 10-K regarding our target industries or sectors would not be relevant to an understanding
of the business that we elect to acquire. As a result, our management may not be able to adequately ascertain or assess all of the significant
risk factors. Accordingly, any shareholders who choose to remain shareholders following our business combination could suffer a reduction
in the value of their shares. Such shareholders are unlikely to have a remedy for such reduction in value.
After our initial business combination, it is possible
that a majority of our directors and officers will live outside the United States and all of our assets will be located outside the United
States; therefore investors may not be able to enforce federal securities laws or their other legal rights.
It is possible that after our initial business combination,
a majority of our directors and officers will reside outside of the United States and all of our assets will be located outside of the
United States. As a result, it may be difficult, or in some cases not possible, for investors in the United States to enforce their legal
rights, to effect service of process upon all of our directors or officers or to enforce judgments of United States courts predicated
upon civil liabilities and criminal penalties on our directors and officers under United States laws.
We are dependent upon our officers and directors, and their
loss could adversely affect our ability to operate.
Our operations are dependent upon a relatively small
group of individuals and, in particular, our officers and directors. We believe that our success depends on the continued service of our
officers and directors, at least until we have completed our initial business combination. In addition, our officers and directors are
not required to commit any specified amount of time to our affairs and, accordingly, will have conflicts of interest in allocating their
time among various business activities, including identifying potential business combinations and monitoring the related due diligence.
We do not have an employment agreement with, or key-man insurance on the life of, any of our directors or officers. The unexpected loss
of the services of one or more of our directors or officers could have a detrimental effect on us.
Our ability to successfully effect our initial business
combination and to be successful thereafter will be totally dependent upon the efforts of our key personnel, some of whom may join us
following our initial business combination. The loss of key personnel could negatively impact the operations and profitability of our
post-combination business.
Our ability to successfully effect our business combination
is dependent upon the efforts of our key personnel. The role of our key personnel in the target business, however, cannot presently be
ascertained. Although some of our key personnel may remain with the target business in senior management or advisory positions following
our business combination, it is likely that some or all of the management of the target business will remain in place. While we intend
to closely scrutinize any individuals we engage after our initial business combination, we cannot assure you that our assessment of these
individuals will prove to be correct. These individuals may be unfamiliar with the requirements of operating a company regulated by the
SEC, which could cause us to have to expend time and resources helping them become familiar with such requirements.
In addition, the officers and directors of an acquisition
candidate may resign upon completion of our initial business combination. The departure of a business combination 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 completion 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 the acquisition candidate 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 key personnel could negatively impact the operations and profitability of our post-combination business.
Our key personnel may negotiate employment or consulting
agreements with a target business in connection with a particular business combination, and a particular business combination may be conditioned
on the retention or resignation of such key personnel. These agreements may provide for them to receive compensation following our business
combination and as a result, may cause them to have conflicts of interest in determining whether a particular business combination is
the most advantageous.
Our key personnel may be able to remain with our
company after the completion of our 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 completion of the business combination. Such negotiations also could make such key personnel’s retention
or resignation a condition to any such agreement. The personal and financial interests of such individuals may influence their motivation
in identifying and selecting a target business.
Our current officers may not remain in their positions
following our 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, which could, in turn, negatively impact the value of our shareholders’ investment in us.
When evaluating the desirability of effecting our
initial business combination with a prospective target business, our ability to assess the target business’s management may be limited
due to a lack of time, resources or information. Our assessment of the capabilities of the target business’s management, therefore,
may prove to be incorrect and such management may lack the skills, qualifications or abilities we suspected. Should the target business’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. Accordingly, any shareholders who choose to remain shareholders following
the business combination could suffer a reduction in the value of their securities. Such shareholders 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 business combination contained an actionable material
misstatement or material omission.
The officers and directors of an acquisition candidate
may resign upon completion of our initial business combination. The loss of a business combination 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 completion 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 the acquisition candidate following our initial
business combination, it is possible that members of the management of an acquisition candidate will not wish to remain in place.
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 in ways adverse to us and our management
team. 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. These trends may continue
into the future.
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.
Our officers and directors will allocate their time to
other businesses thereby causing conflicts of interest in their determination as to how much time to devote to our affairs. This conflict
of interest could have a negative impact on our ability to complete our initial business combination.
Our 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 our search for a business combination and their other businesses. We do not intend to have any full-time employees prior to the completion
of our initial business combination. Each of our officers is engaged in several other business endeavors for which he may be entitled
to substantial compensation, and our officers are not obligated to contribute any specific number of hours per week to our affairs. In
particular, all of the members of our management team and certain of our directors are employed by Tortoise or affiliates of Tortoise,
which is an investment manager to various private investment funds which may make investments in companies that we may target for our
initial business combination. Our independent directors may also serve as officers or board members for other entities, and our Chief
Executive Officer, Vince Cubbage, has served as the interim Chief Executive Officer of Volta Inc. since June 2022. If our officers’
and directors’ other business affairs require them to devote substantial amounts of time to such affairs in excess of their current
commitment levels, it could limit their ability to devote time to our affairs which may have a negative impact on our ability to complete
our initial business combination.
Since our Sponsor paid only approximately $0.003 per share
for the Founder Shares, our officers and directors could potentially make a substantial profit even if we acquire a target business that
subsequently declines in value.
In February 2021, our Sponsor purchased an aggregate
of 7,187,500 Founder Shares for an aggregate purchase price of $25,000, or approximately $0.003 per share. On February 2021, we effected
a share capitalization with respect to our Class B ordinary shares of 1,437,500 shares thereof, resulting in our Sponsor holding an aggregate
pf 8,625,000 Founder Shares. Our officers and directors have a significant economic interest (directly or indirectly, including through
family trusts) in our Sponsor. As a result, the low acquisition cost of the Founder Shares creates an economic incentive whereby our officers
and directors could potentially make a substantial profit even if we acquire a target business that subsequently declines in value and
is unprofitable for public investors.
Certain of our officers and directors are, and some or
all of them may in the future become, affiliated with entities engaged in business activities similar to those intended to be conducted
by us, including another blank check company, and, accordingly, may have conflicts of interest in allocating their time and determining
to which entity a particular business opportunity should be presented.
Until we consummate our initial business combination,
we intend to engage in the business of identifying and combining with one or more businesses. Our Sponsor and officers and directors are,
and may in the future become, affiliated with entities that are engaged in a similar business, including another blank check company that
may have acquisition objectives that are similar to ours.
Our officers and directors also 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 another entity
prior to its presentation to us. Our amended and restated memorandum and articles of association provides 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 our 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 officers, directors, security holders and their respective
affiliates may have competitive pecuniary interests that conflict with our interests.
We have not adopted a policy that expressly prohibits
our directors, officers, security holders or affiliates (including affiliates of our Sponsor and their respective employees) from having
a direct or indirect pecuniary or financial interest in any investment to be acquired or disposed of by us or in any transaction to which
we are a party or have an interest. In fact, we may enter into a business combination with a target business that is affiliated with our
Sponsor, our directors or officers, although we do not intend to do so, or we may acquire a target business through an Affiliated Joint
Acquisition with one or more affiliates of Tortoise and/or one or more investors in the Tortoise Funds. We do not have a policy that expressly
prohibits any such persons from engaging for their own account in business activities of the types conducted by us, including the formation
of, or participation in, one or more other blank check companies. Accordingly, such persons or entities may have a conflict between their
interests and ours.
In particular, certain of the Tortoise Funds are
focused on investments in areas of sustainability, energy transition, infrastructure, water and clean energy. As a result, there may be
substantial overlap between companies that would be a suitable business combination for us and companies that would make an attractive
target for the Tortoise Funds. The personal and financial interests of our directors and officers may influence their motivation in timely
identifying and selecting a target business and completing a business combination. Consequently, our directors’ and officers’
discretion in identifying and selecting a suitable target business may result in a conflict of interest when determining whether the terms,
conditions and timing of a particular business combination are appropriate and in our shareholders’ best interest. If this were
the case and the directors fail to act in accordance with their fiduciary duties owed to us as a matter of Cayman Islands law, we may
have a claim against such individuals.
We may engage in a business combination with one or more
target businesses that have relationships with entities that may be affiliated with our Sponsor, officers, directors or Tortoise which
may raise potential conflicts of interest.
In light of the involvement of our Sponsor, officers
and directors with other entities, we may decide to acquire one or more businesses affiliated with our Sponsor, officers, directors or
Tortoise. Our officers and directors also serve as officers and board members for other entities. They may also have investments in target
businesses. Such entities may compete with us for business combination opportunities. 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 such affiliated entity
met our criteria for a business combination and such transaction was approved by a majority of our independent and disinterested directors.
Despite our obligation to obtain an opinion from an independent investment banking firm that is a member of FINRA or from an independent
accounting firm regarding the fairness to our company from a financial point of view of a business combination with one or more domestic
or international businesses affiliated with our Sponsor, officers or directors, 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 shareholders as they would be absent any conflicts
of interest.
Moreover, we may pursue an Affiliated Joint Acquisition
opportunity with an entity affiliated with Tortoise and/or one or more investors in the Tortoise Funds. Any such parties may co-invest
with us in the target business at the time of our initial business combination, or we could raise additional proceeds to complete the
business combination by issuing to such parties a class of equity or equity-linked securities. Accordingly, such persons or entities may
have a conflict between their interests and ours.
Since our Sponsor, officers and directors will lose their
entire investment in us if our business combination is not completed (other than with respect to public shares they may acquire), a conflict
of interest may arise in determining whether a particular business combination target is appropriate for our initial business combination.
In February 2021, 7,187,500 Founder Shares were issued
to our Sponsor in exchange for the payment of $25,000 of expenses on our behalf, or approximately $0.003 per share. In February 2021,
we effected a share capitalization with respect to our Class B ordinary shares of 1,437,500 shares thereof, resulting in our Sponsor holding
an aggregate of 8,625,000 Founder Shares. Our Founder Shares will be worthless if we do not complete an initial business combination.
In connection with our Initial Public Offering, our Sponsor (i) forfeited a total of 120,000 Founder Shares, and 40,000 Founder Shares
were issued to each of our original independent directors, William J. Clinton, Juan J. Daboub and Mary Beth Mandanas and (ii) sold an
aggregate of 1,650,000 Founder Shares to the Anchor Investors purchasing 32,400,000 Units in our Initial Public Offering and the Over-Allotment.
On October 28, 2022, Mr. Clinton resigned and forfeited his 40,000 Founder Shares. On October 31, 2022, we issued 40,000 Founder Shares
to Greg A. Walker in connection with his appointment as our independent director. In addition, TortoiseEcofin Borrower has purchased an
aggregate of 6,933,333 Private Placement Warrants, each exercisable for one Class A ordinary share at $11.50 per share, for an aggregate
purchase price of $9,500,000, or $1.50 per warrant, that will also be worthless if we do not complete a business combination. The Founder
Shares are identical to the public shares, except that only holders of the Founder Shares have the right to vote on the appointment or
removal of directors prior to our initial business combination and they are Class B ordinary shares that automatically convert into Class
A ordinary shares 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 herein. However, the holders have agreed (A) to vote any shares owned by them in favor of any proposed business combination
and (B) that they will not be entitled to redemption rights with respect to the Founder Shares in connection with a shareholder vote to
approve a proposed initial business combination. In addition, we may obtain loans from our Sponsor, affiliates of our Sponsor or an officer
or director. The personal and financial interests of our officers and directors may influence their motivation in identifying and selecting
a target business combination, completing an initial business combination and influencing the operation of the business following our
initial business combination. This risk may become more acute as the 24-month (or 27-month, as applicable) anniversary of the closing
of our Initial Public Offering nears, which is the deadline for our completion of an initial business combination.
Our management may not be able to 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 may structure a business combination so that the
post-transaction company in which our public shareholders own shares will own less than 100% of the equity interests or assets of a target
business, but we will only complete such business combination if the post-transaction company owns or acquires 50% or more of the outstanding
voting securities of the target or otherwise acquires an interest in the target sufficient for the post-transaction company not to be
required to register as an investment company under the Investment Company Act. We will not consider any transaction that does not meet
such criteria. Even if the post-transaction company owns 50% or more of the voting securities of the target, our shareholders prior to
the 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 in exchange for all of the outstanding capital stock, shares or other equity interests 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, our shareholders
immediately prior to such transaction could own less than a majority of our outstanding ordinary shares subsequent to such transaction.
In addition, other minority shareholders may subsequently combine their holdings resulting in a single person or group obtaining a larger
share of the company’s shares than we initially acquired. Accordingly, this may make it more likely that our management will not
be able to maintain control of the target business.
If our management following our initial business combination
is unfamiliar with United States securities laws, they may have to expend time and resources becoming familiar with such laws, which could
lead to various regulatory issues.
Following our initial business combination, our management
may resign from their positions as officers or directors of the company and the management of the target business at the time of the business
combination may remain in place. Management of the target business may not be familiar with United States securities laws. If new management
is unfamiliar with United States securities laws, they may have to expend time and resources becoming familiar with such laws. This could
be expensive and time-consuming and could lead to various regulatory issues which may adversely affect our operations.
General Risk Factors
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 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 shareholder approval of any golden parachute payments not previously approved. As a result,
our shareholders may not have access to certain information they may deem important. We could be an emerging growth company until the
last day of the fiscal year following the fifth anniversary of the completion of our Initial Public Offering, although circumstances could
cause us to lose that status earlier, including if the market value of our Class A ordinary shares 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 (i) the market value of our ordinary shares held by non-affiliates equals or exceeds $250 million
as of the end of that year’s second fiscal quarter and our annual revenues equaled or exceeded $100 million during our most recently
completed fiscal year or (ii) the market value of our ordinary shares held by non-affiliates equals or exceeds $700 million as of the
end of that year’s second fiscal quarter. 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.
Compliance obligations under the Sarbanes-Oxley Act may
make it more difficult for us to effectuate our business combination, require substantial financial and management resources, and increase
the time and costs of completing our initial business combination.
Section 404 of the Sarbanes-Oxley Act requires that
we evaluate and report on our system of internal controls beginning with this Annual Report on Form 10-K. Only in the event we are deemed
to be a large accelerated filer or an accelerated filer will we be required to comply with the independent registered public accounting
firm attestation requirement on our internal control over financial reporting. Further, for as long as we remain an emerging growth company,
we will not be required to comply with the independent registered public accounting firm attestation requirement on our internal control
over financial reporting. 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 business with which we seek to complete our 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 control of any such entity to achieve compliance with the Sarbanes-Oxley Act may increase the time and costs necessary
to complete any such acquisition.
Because we are incorporated under the laws of the Cayman
Islands, you may face difficulties in protecting your interests, and your ability to protect your rights through the U.S. federal courts
may be limited.
We are an exempted company incorporated under the
laws of the Cayman Islands. As a result, it may be difficult for investors to effect service of process within the United States upon
our directors or executive officers, or enforce judgments obtained in the United States courts against our directors or officers.
Our corporate affairs are governed by our amended
and restated memorandum and articles of association, the Companies Act and the common law of the Cayman Islands. We are also be subject
to the federal securities laws of the United States. The rights of shareholders to take action against the directors, actions by minority
shareholders and the fiduciary responsibilities of our directors to us under Cayman Islands law are to a large extent governed by the
common law of the Cayman Islands. The common law of the Cayman Islands is derived in part from comparatively limited judicial precedent
in the Cayman Islands as well as from English common law, the decisions of whose courts are of persuasive authority, but are not binding
on a court in the Cayman Islands. The rights of our shareholders and the fiduciary responsibilities of our directors under Cayman Islands
law are different from what they would be under statutes or judicial precedent in some jurisdictions in the United States. In particular,
the Cayman Islands has a different body of securities laws as compared to the United States, and certain states, such as Delaware, may
have more fully developed and judicially interpreted bodies of corporate law. In addition, Cayman Islands companies may not have standing
to initiate a shareholders derivative action in a Federal court of the United States.
We have been advised by Walkers, our Cayman Islands
legal counsel, that the courts of the Cayman Islands are unlikely (i) to recognize or enforce against us judgments of courts of the United
States predicated upon the civil liability provisions of the federal securities laws of the United States or any state; and (ii) in original
actions brought in the Cayman Islands, to impose liabilities against us predicated upon the civil liability provisions of the federal
securities laws of the United States or any state, so far as the liabilities imposed by those provisions are, or to the extent they are,
penal in nature. In those circumstances, although there is no statutory enforcement in the Cayman Islands of judgments obtained in the
United States, the courts of the Cayman Islands will recognize and enforce a foreign money judgment of a foreign court of competent jurisdiction
without retrial on the merits based on the principle that a judgment of a competent foreign court imposes upon the judgment debtor an
obligation to pay the sum for which judgment has been given provided certain conditions are met. For a foreign judgment to be enforced
in the Cayman Islands, such judgment must be final and conclusive and for a liquidated sum, and must not be in respect of taxes or a fine
or penalty, inconsistent with a Cayman Islands judgment in respect of the same matter, impeachable on the grounds of fraud or obtained
in a manner, or be of a kind the enforcement of which is, contrary to natural justice or the public policy of the Cayman Islands (awards
of punitive or multiple damages may well be held to be contrary to public policy). A Cayman Islands Court may stay enforcement proceedings
if concurrent proceedings are being brought elsewhere.
As a result of all of the above, public shareholders
may have more difficulty in protecting their interests in the face of actions taken by management, members of the board of directors or
controlling shareholders than they would as public shareholders of a United States company.
Provisions in our amended and restated memorandum and articles
of association may inhibit a takeover of us, which could limit the price investors might be willing to pay in the future for our Class
A ordinary shares and could entrench management.
Our amended and restated memorandum and articles
of association contains provisions that may discourage unsolicited takeover proposals that shareholders 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 preference shares, which 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.
Cyber incidents or attacks directed at us could result
in information theft, data corruption, operational disruption and/or financial loss.
We depend on digital technologies, including information
systems, infrastructure and cloud applications and services, including those of third parties with which we may deal. Sophisticated and
deliberate attacks on, or security breaches in, our systems or infrastructure, or the systems or infrastructure of third parties or the
cloud, could lead to corruption or misappropriation of our assets, proprietary information and sensitive or confidential data. As an early
stage company without significant investments in data security protection, we may not be sufficiently protected against such occurrences.
We may not have sufficient resources to adequately protect against, or to investigate and remediate any vulnerability to, cyber incidents.
It is possible that any of these occurrences, or a combination of them, could have adverse consequences on our business and lead to financial
loss.
Many countries have difficult and unpredictable legal systems
and underdeveloped laws and regulations that are unclear and subject to corruption and inexperience, which may adversely impact our results
of operations and financial condition.
In the event we acquire a non-U.S. target, our ability
to seek and enforce legal protections, including with respect to intellectual property and other property rights, or to defend ourselves
with regard to legal actions taken against us in a given country, may be difficult or impossible, which could adversely impact our operations,
assets or financial condition.
Rules and regulations in many countries are often
ambiguous or open to differing interpretation by responsible individuals and agencies at the municipal, state, regional and federal levels.
The attitudes and actions of such individuals and agencies are often difficult to predict and inconsistent.
Delay with respect to the enforcement of particular
rules and regulations, including those relating to customs, tax, environmental and labor, could cause serious disruption to operations
abroad and negatively impact our results.
Because foreign law could govern almost all of our material
agreements, we may not be able to enforce our rights within such jurisdiction or elsewhere, which could result in a significant loss of
business, business opportunities or capital.
In the event we acquire a non-U.S. target, foreign
law could govern almost all of our material agreements. The target business may not be able to enforce any of its material agreements
or enforce remedies for breaches of those agreements outside of such foreign jurisdiction’s legal system. The system of laws and
the enforcement of existing laws and contracts in such jurisdiction may not be as certain in implementation and interpretation as in the
United States. As a result, the inability to enforce or obtain a remedy under any of our future agreements could result in a significant
loss of business and business opportunities.