QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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Title of each class
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Trading
Symbol(s)
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Name of each exchange
on which registered
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Large accelerated filer
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☐
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Accelerated filer
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☐
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☒
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Smaller reporting company
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Emerging growth company
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Page
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PART 1 — FINANCIAL INFORMATION
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Item 1.
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1
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1
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2
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3
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4
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5
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Item 2.
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20
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Item 3.
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22
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Item 4.
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22
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PART II — OTHER INFORMATION
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Item 1.
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23
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Item 1A.
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23
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Item 2.
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24
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Item 3.
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24
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Item 4.
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24
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Item 5.
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24
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Item 6.
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25
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26
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ITEM 1. |
FINANCIAL STATEMENTS (UNAUDITED)
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September 30, 2022
(Unaudited)
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December 31,
2021
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|||||||
ASSETS
|
||||||||
CURRENT ASSETS
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||||||||
Cash
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$
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$
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||||
Prepaid expenses and other assets
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|
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||||||
Due from affiliates
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||||||
Total current assets
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||||||
NON – CURRENT ASSETS
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||||||||
Prepaid expenses – non-current assets
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||||||
Investments held in Trust Account
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||||||
Total Non – Current Assets
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||||||
TOTAL ASSETS
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$
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$
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||||
LIABILITIES, REDEEMABLE ORDINARY SHARES AND SHAREHOLDER’S DEFICIT
|
||||||||
CURRENT LIABILITIES
|
||||||||
Accounts payable and accrued expenses
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$
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|
$
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|
||||
Total current liabilities
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|
|
||||||
LONG TERM LIABILITIES
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||||||||
Derivative warrant liabilities
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|
||||||
Deferred underwriting fee payable
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||||||
Total long-term liabilities
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||||||
Total liabilities
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|
||||||
COMMITMENTS AND CONTINGENCIES (NOTE 6)
|
||||||||
Class A ordinary shares subject to possible redemption, $
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|
|
||||||
SHAREHOLDERS’ DEFICIT
|
||||||||
Preference shares, $
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|
|
||||||
Class A ordinary shares; $
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|
|
||||||
Class B ordinary shares; $
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|
|
||||||
Additional paid-in capital
|
|
|
||||||
Accumulated deficit
|
(
|
)
|
(
|
)
|
||||
Total shareholders’ deficit
|
(
|
)
|
(
|
)
|
||||
LIABILITIES, REDEEMABLE ORDINARY SHARES AND SHAREHOLDERS’ DEFICIT
|
$
|
|
$
|
|
Three Months Ended
September 30,
|
Nine Months
Ended
September 30,
|
For the Period
from March
29, 2021
(inception)
through
September 30,
|
||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
OPERATING EXPENSES
|
||||||||||||||||
General and administrative expenses
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Loss from operations
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Other income:
|
||||||||||||||||
Earnings on investments held in Trust Account and other interest
|
|
|
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|
||||||||||||
Change in fair value of warrants
|
|
|
|
|
||||||||||||
Total other income
|
|
|
|
|
||||||||||||
Net income (loss)
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
||||||
Weighted average shares outstanding of Class A ordinary shares
|
|
|
|
|
||||||||||||
Basic and diluted net income per share, Class A ordinary shares
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Weighted average shares outstanding of Class B ordinary shares
|
|
|
|
|
||||||||||||
Basic and diluted net income (loss) per share, Class B ordinary shares
|
$
|
|
$
|
(
|
) |
$
|
|
$
|
(
|
)
|
Class A ordinary shares
Redeemable
|
Class B Ordinary shares
Non-Redeemable
|
Additional
paid-in
capital
|
Accumulated deficit
|
Total
Shareholders’
Deficit
|
||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
|||||||||||||||||||||||||
Balance, December 31,2021
|
|
$
|
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
||||||||||||||
Remeasurement of redeemable Class A ordinary shares to redemption value
|
—
|
|
—
|
|
|
(
|
)
|
(
|
)
|
|||||||||||||||||||
Net income
|
—
|
|
—
|
|
|
|
|
|||||||||||||||||||||
Balance, March 31, 2022
|
|
|
|
|
|
(
|
)
|
(
|
)
|
|||||||||||||||||||
Remeasurement of redeemable Class A ordinary shares to redemption value
|
—
|
|
—
|
|
|
(
|
)
|
(
|
)
|
|||||||||||||||||||
Net income
|
—
|
|
—
|
|
|
|
|
|||||||||||||||||||||
Balance, June 30, 2022
|
|
$
|
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
||||||||||||||
Remeasurement of redeemable Class A ordinary shares to redemption value
|
—
|
|
—
|
|
|
(
|
)
|
(
|
)
|
|||||||||||||||||||
Net income
|
—
|
|
—
|
|
|
|
|
|||||||||||||||||||||
Balance, September 30, 2022
|
|
$
|
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
Class A ordinary shares
Redeemable
|
Class B ordinary shares
non-redeemable
|
Additional
paid-in capital
|
Accumulated deficit
|
Total Shareholders’
Equity (Deficit)
|
||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
|||||||||||||||||||||||||
Balance, March 29, 2021 (Inception)
|
|
$
|
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Issuance of Class B ordinary shares to sponsor
|
|
|
|
(1) |
|
|
|
|
||||||||||||||||||||
Net loss
|
—
|
|
—
|
|
|
(
|
)
|
(
|
)
|
|||||||||||||||||||
Balance, June 30, 2021
|
|
$
|
|
|
(1) |
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||||||
Net loss
|
—
|
|
—
|
|
|
(
|
)
|
(
|
)
|
|||||||||||||||||||
Balance, September 30, 2021
|
|
$
|
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
(1) |
|
For the nine months ended
September 30, 2022
|
For the period from
March 29, 2021 (inception)
through September 30, 2021
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
||||||||
Net income (loss)
|
$
|
|
$
|
(
|
)
|
|||
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
|
||||||||
Earnings on investments held in Trust Account
|
(
|
)
|
|
|||||
Change in fair value of warrants
|
(
|
)
|
|
|||||
Changes in operating assets and liabilities:
|
||||||||
Prepaid expenses and other assets
|
|
|
||||||
Accounts payable and accrued expenses
|
|
|
||||||
Net cash used in operating activities
|
(
|
)
|
|
|||||
NET CHANGE IN CASH
|
$
|
(
|
)
|
$
|
|
|||
CASH, BEGINNING OF PERIOD
|
|
|
||||||
CASH, END OF PERIOD
|
$
|
|
$
|
|
||||
Supplemental disclosure of noncash activities:
|
||||||||
Proceeds from notes payable—related party paid directly for deferred offering costs
|
$
|
|
$
|
|
||||
Deferred offering costs included in accrued offering costs and due to affiliates
|
$
|
|
$
|
|
||||
Payment of deferred offering costs by the Sponsor in exchange for the issuance of Class B ordinary shares
|
$
|
|
$
|
|
||||
Remeasurement of redeemable Class A ordinary shares to redemption value
|
$
|
|
$
|
|
• |
Level 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets;
|
•
|
Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for
identical or similar instruments in markets that are not active; and
|
•
|
Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which
one or more significant inputs or significant value drivers are unobservable. In some circumstances, the inputs used to measure fair value might be categorized within different levels of the fair value hierarchy. In those instances, the
fair value measurement is categorized in its entirety in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement.
|
Gross proceeds
|
$
|
|
||
Less:
|
||||
Proceeds allocated to Public Warrants
|
(
|
)
|
||
Class A ordinary shares issuance costs
|
(
|
)
|
||
Plus: Accretion of carrying value to redemption value
|
|
|||
Class A ordinary shares subject to possible redemption as of December 31,
2021
|
$
|
|
||
Plus: Remeasurement of Class A ordinary shares to redemption value
|
|
|||
Class A ordinary shares subject to possible redemption, as of March 31, 2022
|
$
|
|
||
Plus: Remeasurement of Class A ordinary shares to redemption value
|
|
|||
Class A ordinary shares subject to possible redemption, as of June 30, 2022
|
$
|
|
||
Plus: Remeasurement of Class A ordinary shares to redemption value
|
|
|||
Class A ordinary shares subject to possible redemption, as of September 30,
2022
|
$
|
|
Net income
|
$
|
|
||
Less: Accretion of temporary equity to redemption value
|
(
|
)
|
||
Net income excluding accretion of temporary equity to redemption
|
$
|
|
Class A
|
Class B
|
Total
|
||||||||||
Total number of shares
|
|
|
|
|||||||||
Ownership percentage
|
|
%
|
|
%
|
||||||||
Total income allocated
|
$
|
|
$
|
|
$
|
|
||||||
Less: Accretion allocated based on ownership percentage
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Plus: Accretion applicable to Class A redeemable shares
|
|
|
|
|||||||||
Total income by class
|
$
|
|
$
|
|
$
|
|
||||||
Weighted Average Shares outstanding
|
|
|
|
|||||||||
Income per share
|
$
|
|
$
|
|
Net income
|
$
|
|
||
Less: Accretion of temporary equity to redemption value
|
(
|
)
|
||
Net income excluding accretion of temporary equity to redemption
|
$
|
|
Class A
|
Class B
|
Total
|
||||||||||
Total number of shares
|
|
|
|
|||||||||
Ownership percentage
|
|
%
|
|
%
|
||||||||
Total income allocated
|
$
|
|
$
|
|
$
|
|
||||||
Less: Accretion allocated based on ownership percentage
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Plus: Accretion applicable to Class A redeemable shares
|
|
|
|
|||||||||
Total income by class
|
$
|
|
$
|
|
$
|
|
||||||
Weighted Average Shares outstanding
|
|
|
|
|||||||||
Income per share
|
$
|
|
$
|
|
Net loss
|
$
|
(
|
)
|
|
Less: Accretion of temporary equity to redemption value
|
|
|||
Net loss excluding accretion of temporary equity to redemption
|
$
|
(
|
)
|
Class A
|
Class B
|
Total
|
||||||||||
Total number of shares
|
|
|
|
|||||||||
Ownership percentage
|
|
%
|
|
%
|
||||||||
Total loss allocated
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
||||
Less: Accretion allocated based on ownership percentage
|
|
|
|
|||||||||
Plus: Accretion applicable to Class A redeemable shares
|
|
|
|
|||||||||
Total loss by class
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
||||
Weighted Average Shares outstanding
|
|
|
|
|||||||||
Loss per share
|
$
|
|
$
|
(
|
)
|
Net loss
|
$
|
(
|
)
|
|
Less: Accretion of temporary equity to redemption value
|
|
|||
Net loss excluding accretion of temporary equity to redemption
|
$
|
(
|
)
|
Class A
|
Class B
|
Total
|
||||||||||
Total number of shares
|
|
|
|
|||||||||
Ownership percentage
|
|
%
|
|
%
|
||||||||
Total loss allocated
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
||||
Less: Accretion allocated based on ownership percentage
|
|
|
|
|||||||||
Plus: Accretion applicable to Class A redeemable shares
|
|
|
|
|||||||||
Total loss by class
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
||||
Weighted Average Shares outstanding
|
|
|
|
|||||||||
Loss per share
|
$
|
|
$
|
(
|
)
|
•
|
in whole and not in part;
|
•
|
at a price of $
|
•
|
upon a minimum of
|
•
|
if, and only if, the last reported sale price (the “closing price”) of our Class A ordinary shares equals or exceeds $
|
Level 1: |
Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing
information on an ongoing basis.
|
Level 2: |
Observable inputs other than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets or liabilities and quoted prices for identical assets or liabilities in markets that are not active.
|
Level 3: |
Unobservable inputs based on our assessment of the assumptions that market participants would use in pricing the asset or liability.
|
Level 1
|
Level 2
|
Level 3
|
||||||||||
Assets:
|
||||||||||||
U.S. Treasury Securities
|
$
|
|
$
|
|
$
|
|
||||||
Liabilities:
|
||||||||||||
Warrant Liability - Public Warrants
|
$
|
|
$
|
|
$
|
|
||||||
Warrant Liability - Private Warrants
|
$
|
|
$
|
|
$
|
|
Level 1
|
Level 2
|
Level 3
|
||||||||||
Assets:
|
||||||||||||
U.S. Treasury Securities
|
$
|
|
$
|
|
$
|
|
||||||
Liabilities:
|
||||||||||||
Warrant Liability - Public Warrants
|
$
|
|
$
|
|
$
|
|
||||||
Warrant Liability - Private Warrants
|
$
|
|
$
|
|
$
|
|
December 31, 2021
|
||||
Share Price
|
$
|
|
||
Exercise Price
|
$
|
|
||
Redemption trigger price
|
$
|
|
||
Term (years)
|
|
|||
Probability of Acquisition
|
|
%
|
||
Volatility
|
|
%
|
||
Risk Free Rate
|
|
%
|
||
Dividend Yield
|
|
Derivative warrant liabilities at March 29, 2021 (inception)
|
$
|
|
||
Issuance of Private Warrants—Level 3 measurements
|
|
|||
Change in fair value of derivative warrant liabilities with Level 3 inputs
|
(
|
)
|
||
Derivative warrant liabilities at December 31, 2021 with Level 3 inputs
|
$
|
|
||
Transfer out of level 3
|
(
|
)
|
||
Derivative warrant liabilities at September 30, 2022 with Level 3 inputs
|
$
|
|
ITEM 2. |
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
Item 3. |
Quantitative and Qualitative Disclosures About Market Risk
|
Item 4. |
Controls and Procedures
|
ITEM 1. |
LEGAL PROCEEDINGS
|
ITEM 1A. |
RISK FACTORS
|
ITEM 2. |
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
ITEM 3. |
DEFAULTS UPON SENIOR SECURITIES
|
ITEM 4. |
MINE SAFETY DISCLOSURES
|
ITEM 5. |
OTHER INFORMATION
|
Item 6.
|
Exhibits.
|
Certification of Principal Executive Officer Pursuant to Securities Exchange Act Rules 13a-14(a) and 15(d)-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
Certification of Principal Executive Officer Pursuant to Securities Exchange Act Rules 13a-14(a) and 15(d)-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
Certification of Principal Financial Officer Pursuant to Securities Exchange Act Rules 13a-14(a) and 15(d)-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
Certification of Principal Financial Officer Pursuant to Securities Exchange Act Rules 13a-14(a) and 15(d)-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
101.INS*
|
Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
|
101.SCH*
|
Inline XBRL Taxonomy Extension Schema Document.
|
101.CAL*
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document.
|
101.DEF*
|
Inline XBRL Taxonomy Extension Definition Linkbase Document.
|
101.LAB*
|
Inline XBRL Taxonomy Extension Label Linkbase Document.
|
101.PRE*
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document.
|
104*
|
Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document, which is contained in Exhibit 101).
|
* |
Filed herewith.
|
** |
Furnished herewith.
|
ROSE HILL ACQUISITION CORPORATION
|
||
Date: November 15, 2022
|
By:
|
/s/ Felipe Canales
|
Name:
|
Felipe Canales
|
|
Title:
|
Co-Chief Executive Officer and Director
|
|
(Principal Executive Officer)
|
||
Date: November 15, 2022
|
By:
|
/s/ Marco Simental
|
Name:
|
Marco Simental
|
|
Title:
|
Co-Chief Executive Officer and Director
|
|
(Principal Executive Officer)
|
||
Date: November 15, 2022
|
By:
|
/s/ Albert Hill IV
|
Name:
|
Albert Hill IV
|
|
Title:
|
Co-Chief Financial Officer and Director
|
|
(Principal Financial and Accounting Officer)
|
||
Date: November 15, 2022
|
By:
|
/s/ Juan Jose Rosas
|
Name:
|
Juan Jose Rosas
|
|
Title:
|
Co-Chief Financial Officer and Director
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(Principal Financial and Accounting Officer)
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