SECURITIES AND EXCHANGE
COMMISSION
Washington, D.C. 20549
_____________________
SCHEDULE
14A
(Amendment No. 1)
_____________________
Proxy Statement Pursuant to
Section 14(a) of the
Securities Exchange Act of 1934
Filed by the Registrant
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Filed by a Party other than the Registrant
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Check the appropriate
box:
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Preliminary Proxy Statement
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Confidential, for Use of the Commission Only (as permitted by Rule
14a-6(e)(2))
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Definitive Proxy Statement
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Definitive Additional Materials
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Soliciting Material Pursuant to Section 240.14a-12
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SCVX
CORP.
(Name of Registrant as
Specified In Its Charter)
___________________________________________________________________
(Name of
Person(s) Filing Proxy Statement, if other than the
Registrant)
Payment of Filing Fee
(Check the appropriate box):
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No fee required.
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Fee paid previously with preliminary materials.
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Fee computed on table below per Exchange Act Rules 14a-6(i) (1) and 0-11.
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PRELIMINARY
PROXY STATEMENT — SUBJECT TO COMPLETION, DATED JULY 13,
2022
SCVX
CORP.
A Cayman Islands Exempted Company
(Company Number 357366)
1220 L St NW, Suite 100-397
Washington, DC 20005
NOTICE OF EXTRAORDINARY
GENERAL MEETING
To Be Held at 9:00 a.m. Eastern Time on July
27, 2022
TO THE SHAREHOLDERS OF SCVX CORP.:
You are cordially invited to attend the extraordinary general
meeting (the “extraordinary general meeting”) of SCVX Corp., a
Cayman Islands exempted company (“SCVX”), on July 27, 2022, at
9:00 a.m., Eastern Time, at the offices of Willkie
Farr & Gallagher LLP located at 787 Seventh Avenue,
New York, New York 10019 (only to the extent consistent
with, or permitted by, applicable law and directives of public
health authorities), or at such other time, on such other date and
at such other place to which the meeting may be adjourned. In the
interest of public health, and due to the impact of the
coronavirus, we are also planning for the meeting to be held
virtually over the Internet, but the physical location of the
meeting will remain at the location specified above for the
purposes of our Amended and Restated Memorandum and Articles of
Association. The accompanying proxy statement (the “Proxy
Statement”), dated July [•], 2022, and is first being sent to
shareholders of the Company on or about July [•], 2022.
The sole purpose of the Extraordinary General Meeting is to:
• consider
and vote upon a proposal by special resolution (the “Extension
Proposal”), pursuant to the terms of the Company’s amended and
restated memorandum and articles of association (the “Articles”),
to extend the date by which the Company must either
(a) consummate a merger, share exchange, asset acquisition,
share purchase, reorganization or similar business combination with
one or more businesses or entities (a “business combination”) or
(b) (i) cease all operations except for the purpose of
winding up; (ii) as promptly as reasonably possible but not
more than ten business days thereafter, redeem all of the
Company’s Class A ordinary shares included as part of the
units sold in the Company’s initial public offering that was
consummated on January 28, 2020
(the “IPO”); and (iii) as promptly as reasonably possible
following such redemption, subject to the approval of the Company’s
remaining members and the Company’s board of directors (the
“Board”), liquidate and dissolve, subject in the case of
(ii) and (iii), to its obligations under Cayman Islands law to
provide for claims of creditors and in all cases subject to the
other requirements of applicable law, from July 28, 2022 to April 28, 2023 (the “Extension,” and such later
date, the “Extended Date”); and
• consider
and vote on a proposal to approve the adjournment of the
Extraordinary General Meeting to a later date or dates, if
necessary, to permit further solicitation and vote of proxies in
the event that there are insufficient votes for, or otherwise in
connection with, the approval of the Extension Proposal (the
“Adjournment Proposal”). The Adjournment Proposal is only expected
to be presented at the Extraordinary General Meeting if there are
not sufficient votes to approve the Extension Proposal.
Both of the Extension Proposal and the Adjournment Proposal are
more fully described in the accompanying Proxy Statement.
The purpose of the Extension is to allow us more time to complete
an initial business combination. Pursuant to our Articles and a
special resolution adopted by our shareholders at an extraordinary
general meeting held on January 25, 2022 (the “First Extension
Resolution”), we have until July 28, 2022 to complete a
business combination. We have identified a potential business
combination target company (the “Target”) for an initial business
combination. While we believe the Target is a compelling
opportunity for our initial business combination and we are
currently in advanced negotiations for an initial business
combination involving the Target, our Board currently believes that
there will not be sufficient time to complete a business
combination by July 28, 2022. Therefore, our Board has
determined that it is in the best interests of our shareholders to
extend the date that we have to consummate a business combination
to the Extended Date in order that our shareholders can have the
chance to participate in an investment opportunity.
The Adjournment Proposal, if adopted, will allow our Board to
adjourn the Extraordinary General Meeting to a later date or dates
to permit further solicitation of proxies. The Adjournment Proposal
is only expected to be presented to our shareholders in the event
that there are insufficient votes for, or otherwise in connection
with, the approval of the Extension Proposal.
If the Extension Proposal is not approved and we do not consummate
a business combination by July 28, 2022, as contemplated by
our IPO prospectus and in accordance with our Articles and the
First Extension Resolution, 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 (as defined below), at a
per-share price, payable in cash,
equal to the aggregate amount then on deposit in the Trust Account
(as defined in the Investment Management Trust Agreement, dated as
of January 23, 2020, by and between the Company and
Continental Stock Transfer & Trust Company), including
interest (less taxes payable, and less up to $100,000 of interest
to pay liquidation 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);
and (iii) as promptly as reasonably possible following such
redemption, subject to the approval of our remaining shareholders
and our Board, liquidate and dissolve, subject in the case of
(ii) and (iii), to its obligations under Cayman Islands law to
provide for claims of creditors and in all cases subject to the
other requirements of applicable law.
In connection with the Extension Proposal, public shareholders may
elect to redeem their shares for a per-share price, payable in cash, equal to the
aggregate amount then on deposit in the Trust Account, including
interest earned, divided by the number of then outstanding
Class A ordinary shares included as part of the units sold in
the IPO (the “public shares”), and which election we refer to as
the “Election.” An Election can be made regardless of whether such
public shareholders vote “FOR” or “AGAINST” the Extension Proposal
and an Election can also be made by public shareholders who do not
vote, or do not instruct their broker or bank how to vote, at the
Extraordinary General Meeting. Holders of public shares (the
“public shareholders”) may make an Election regardless of whether
such public shareholders were holders as of the record date. Public
shareholders who do not make the Election would be entitled to have
their shares redeemed for cash if we have not completed our initial
business combination by the Extended Date. In addition, regardless
of whether public shareholders vote “FOR” or “AGAINST” the
Extension Proposal, or do not vote, or do not instruct their broker
or bank how to vote, at the Extraordinary General Meeting, if the
Extension is implemented and a public shareholder does not make an
Election, they will retain the right to vote on any proposed
initial business combination in the future and the right to redeem
their public shares at a per-share
price, payable in cash, equal to the aggregate amount then on
deposit in the Trust Account as of two business days prior to
the consummation of such initial business combination, including
interest (which interest shall be net of taxes payable), divided by
the number of then outstanding public shares, in the event a
proposed business combination is completed. We are not asking you
to vote on any proposed business combination at this time.
Based upon the amount in the Trust Account as of June 30, 2022,
which was $38,037,700.26, we anticipate that the per-share price at which public shares will be
redeemed from cash held in the Trust Account will be approximately
$10.03 at the time of the Extraordinary General Meeting. We cannot
assure shareholders that they will be able to sell their shares in
the open market, even if the market price per share is higher than
the redemption price stated above, as there may not be sufficient
liquidity in our securities when such shareholders wish to sell
their shares. We will not proceed with the Extension if redemptions
of our public shares would cause us to have less than $5,000,001 of
net tangible assets following approval of the Extension
Proposal.
The withdrawal of funds from the Trust Account in connection with
the Election will reduce the amount held in the Trust Account
following the Election, and the amount remaining in the Trust
Account may be only a small fraction of the approximately
$38,037,700.26 that was in the Trust Account as of June 30, 2022.
In such event, we may need to obtain additional funds to complete
an initial business combination, and there can be no assurance that
such funds will be available on terms acceptable or at all.
TO
DEMAND REDEMPTION, PRIOR TO 5:00 P.M. EASTERN TIME ON
JULY 25, 2022 (TWO BUSINESS
DAYS BEFORE THE EXTRAORDINARY GENERAL MEETING), YOU SHOULD ELECT
EITHER TO PHYSICALLY TENDER YOUR SHARE CERTIFICATES TO CONTINENTAL
STOCK TRANSFER & TRUST COMPANY OR TO DELIVER YOUR SHARES
TO THE TRANSFER AGENT ELECTRONICALLY USING DTC’S DWAC
(DEPOSIT/WITHDRAWAL AT
CUSTODIAN), AS DESCRIBED HEREIN. YOU SHOULD ENSURE THAT YOUR
BANK OR BROKER COMPLIES WITH THE REQUIREMENTS IDENTIFIED ELSEWHERE
HEREIN.
There will be no redemption rights or liquidating distributions
with respect to our warrants, which will expire worthless in the
event of our winding up. In the event of a liquidation, holders of
our Class B ordinary shares (the “founder shares” and,
together with the public shares, the “shares” or “ordinary
shares”), including SCVX USA LLC (our “Sponsor”) and our
directors, will not receive any monies held in the Trust Account as
a result of their ownership of founder shares.
Under the Cayman Islands Companies Act and the Articles, the
approval of the Extension Proposal requires a special resolution,
being the affirmative vote of the holders of at least a
two-thirds majority of the then issued
and outstanding ordinary shares who, being present and entitled to
vote at the Extraordinary General Meeting, vote at the
Extraordinary General Meeting, and the Adjournment Proposal
requires the affirmative vote of the holders of at least a majority
of the then issued and outstanding ordinary shares who, being
present and entitled to vote at the Extraordinary General Meeting,
vote at the Extraordinary General Meeting.
Our board has fixed the close of business on June 29, 2022 as the
record date for determining the shareholders entitled to receive
notice of and vote at the Extraordinary General Meeting and any
adjournment thereof. Only holders of record of the ordinary shares
on that date are entitled to have their votes counted at the
Extraordinary General Meeting or any adjournment thereof.
After careful consideration
of all relevant factors, our Board has determined that the
Extension Proposal and, if presented, the Adjournment Proposal are
advisable and recommends that you vote or give instruction to vote
“FOR” such proposals.
Under the Articles, no other business may be transacted at the
Extraordinary General Meeting.
Enclosed is the Proxy Statement containing detailed information
concerning the Extension Proposal, the Adjournment Proposal and the
Extraordinary General Meeting. Whether or not you plan to attend
the Extraordinary General Meeting, we urge you to read this
material carefully and vote your ordinary shares.
July [•], 2022
By Order of the Board
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/s/
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Chairman and Chief Executive Officer
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Your
vote is important. If you are a shareholder of record, please sign,
date and return your proxy card as soon as possible to make sure
that your shares are represented at the Extraordinary General
Meeting. If you are a shareholder of record, you may also cast your
vote in person at the Extraordinary General Meeting. If your shares
are held in an account at a brokerage firm or bank, you must
instruct your broker or bank how to vote your shares, or you may
cast your vote in person at the Extraordinary General Meeting by
obtaining a proxy from your brokerage firm or bank. Your failure to
vote or instruct your broker or bank how to vote will mean that
your ordinary shares will not count towards the quorum requirement
for the Extraordinary General Meeting and will not be voted. An
abstention or broker non-vote
will
be counted towards the quorum requirement but will not count as a
vote cast at the Extraordinary General Meeting.
Important Notice Regarding
the Availability of Proxy Materials for the Extraordinary General
Meeting to be held on July 27, 2022: This
notice of extraordinary general meeting and the accompanying Proxy
Statement are available at https://www.cstproxy.com/scvx/ext2022.
SCVX
CORP.
A Cayman Islands Exempted Company
(Company Number 357366)
1220 L St NW, Suite 100-397
Washington, DC 20005
EXTRAORDINARY GENERAL
MEETING
TO BE HELD ON JULY 27, 2022
PROXY STATEMENT
The extraordinary general meeting (the “Extraordinary General
Meeting”) of SCVX Corp. (“we,” “us,” “our” or the “Company”) will
be held at 9:00 a.m. Eastern Time on July 27, 2022, at the
offices of Willkie Farr & Gallagher LLP located at 787
Seventh Avenue, New York, New York 10019 (only to the
extent consistent with, or permitted by, applicable law and
directives of public health authorities), or at such other time, on
such other date and at such other place to which the meeting may be
adjourned. The sole purpose of the Extraordinary General Meeting is
to:
• consider
and vote upon a proposal by special resolution (the “Extension
Proposal”), pursuant to the terms of the Company’s amended and
restated memorandum and articles of association (the “Articles”),
to extend the date by which the Company must either
(a) consummate a merger, share exchange, asset acquisition,
share purchase, reorganization or similar business combination with
one or more businesses or entities (a “business combination”) or
(b) (i) cease all operations except for the purpose of
winding up; (ii) as promptly as reasonably possible but not
more than ten business days thereafter, redeem all of the
Company’s Class A ordinary shares included as part of the
units sold in the Company’s initial public offering that was
consummated on January 28, 2020
(the “IPO”); and (iii) as promptly as reasonably possible
following such redemption, subject to the approval of the Company’s
remaining members and the Company’s board of directors (the
“Board”), liquidate and dissolve, subject in the case of
(ii) and (iii), to its obligations under Cayman Islands law to
provide for claims of creditors and in all cases subject to the
other requirements of applicable law, from July 28, 2022 to April 28, 2023 (the “Extension,” and such later
date, the “Extended Date”); and
• consider
and vote on a proposal to approve the adjournment of the
Extraordinary General Meeting to a later date or dates, if
necessary, to permit further solicitation and vote of proxies in
the event that there are insufficient votes for, or otherwise in
connection with, the approval of the Extension Proposal (the
“Adjournment Proposal”). The Adjournment Proposal is only expected
to be presented at the Extraordinary General Meeting if there are
not sufficient votes to approve the Extension Proposal.
The purpose of the Extension is to allow us more time to complete
an initial business combination. Pursuant to our Articles and the
First Extension Resolution, we have until July 28, 2022 to
complete a business combination. We have identified a potential
business combination target company (the “Target”) for an initial
business combination. While we believe the Target is a compelling
opportunity for our initial business combination and we are
currently in advanced negotiations for an initial business
combination involving the Target, our Board currently believes that
there will not be sufficient time to complete a business
combination by July 28, 2022. Therefore, our Board has
determined that it is in the best interests of our shareholders to
extend the date that we have to consummate a business combination
to the Extended Date in order that our shareholders can have the
chance to participate in an investment opportunity.
The Adjournment Proposal, if adopted, will allow our Board to
adjourn the Extraordinary General Meeting to a later date or dates
to permit further solicitation of proxies. The Adjournment Proposal
is only expected to be presented to our shareholders in the event
that there are insufficient votes for, or otherwise in connection
with, the approval of the Extension Proposal.
If the Extension Proposal is not approved and we do not consummate
a business combination by July 28, 2022, as contemplated by
our IPO prospectus and in accordance with our Articles and the
First Extension Resolution, 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 (as defined below), at a
per-share price, payable in cash,
equal to the aggregate amount then on deposit in the Trust Account,
including interest (less taxes payable, and less up to $100,000 of
interest to pay liquidation expenses), divided by the number of
then outstanding public shares, which
1
redemption will completely extinguish public shareholders’ rights
as shareholders (including the right to receive further liquidating
distributions, if any); and (iii) as promptly as reasonably
possible following such redemption, subject to the approval of our
remaining shareholders and our board, liquidate and dissolve,
subject in the case of (ii) and (iii), to its obligations
under Cayman Islands law to provide for claims of creditors and in
all cases subject to the other requirements of applicable law.
In connection with the Extension Proposal, public shareholders may
elect to redeem their shares for a per-share price, payable in cash, equal to the
aggregate amount then on deposit in the Trust Account, including
interest earned, divided by the number of then outstanding
Class A ordinary shares included as part of the units sold in
the IPO (the “public shares”), and which election we refer to as
the “Election.” An Election can be made regardless of whether such
public shareholders vote “FOR” or “AGAINST” the Extension Proposal
and an Election can also be made by public shareholders who do not
vote, or do not instruct their broker or bank how to vote, at the
Extraordinary General Meeting. Holders of public shares (the
“public shareholders”) may make an Election regardless of whether
such public shareholders were holders as of the record date. Public
shareholders who do not make the Election would be entitled to have
their shares redeemed for cash if we have not completed our initial
business combination by the Extended Date. In addition, regardless
of whether public shareholders vote “FOR” or “AGAINST” the
Extension Proposal, or do not vote, or do not instruct their broker
or bank how to vote, at the Extraordinary General Meeting, if the
Extension is implemented and a public shareholder does not make an
Election, they will retain the right to vote on any proposed
initial business combination in the future and the right to redeem
their public shares at a per-share
price, payable in cash, equal to the aggregate amount then on
deposit in the Trust Account as of two business days prior to
the consummation of such initial business combination, including
interest (which interest shall be net of taxes payable), divided by
the number of then outstanding public shares, in the event a
proposed business combination is completed. We are not asking you
to vote on any proposed business combination at this time.
Based upon the amount in the Trust Account as of June 30, 2022,
which was $38,037,700.26, we anticipate that the per-share price at which public shares will be
redeemed from cash held in the Trust Account will be approximately
$10.03 at the time of the Extraordinary General Meeting. We cannot
assure shareholders that they will be able to sell their shares in
the open market, even if the market price per share is higher than
the redemption price stated above, as there may not be sufficient
liquidity in our securities when such shareholders wish to sell
their shares. We will not proceed with the Extension if redemptions
of our public shares would cause us to have less than $5,000,001 of
net tangible assets following approval of the Extension
Proposal.
The withdrawal of funds from the Trust Account in connection with
the Election (the “Withdrawal Amount”) will reduce the amount held
in the Trust Account following the Election, and the amount
remaining in the Trust Account may be only a small fraction of the
approximately $38,037,700.26 that was in the Trust Account as of
June 30, 2022. In such event, we may need to obtain additional
funds to complete an initial business combination, and there can be
no assurance that such funds will be available on terms acceptable
or at all.
There will be no redemption rights or liquidating distributions
with respect to our warrants, which will expire worthless in the
event of our winding up. In the event of a liquidation, holders of
our Class B ordinary shares (the “founder shares” and,
together with the public shares, the “shares” or “ordinary
shares”), including SCVX USA LLC (our “Sponsor”) and our
directors, will not receive any monies held in the Trust Account as
a result of their ownership of founder shares.
Under the Cayman Islands Companies Act and the Articles, the
approval of the Extension Proposal requires a special resolution,
being the affirmative vote of the holders of at least a
two-thirds majority of the then issued
and outstanding ordinary shares who, being present and entitled to
vote at the Extraordinary General Meeting, vote at the
Extraordinary General Meeting, and the Adjournment Proposal
requires the affirmative vote of the holders of at least a majority
of the then issued and outstanding ordinary shares who, being
present and entitled to vote at the Extraordinary General Meeting,
vote at the Extraordinary General Meeting.
Under the Articles, no other business may be transacted at the
Extraordinary General Meeting.
Our board has fixed the close of business on June 29, 2022 as the
record date for determining our shareholders entitled to receive
notice of and vote at the Extraordinary General Meeting and any
adjournment thereof. Only holders of record of the ordinary shares
on that date are entitled to have their votes counted at the
Extraordinary General Meeting or any adjournment thereof. On the
record date of the Extraordinary General Meeting, there were
9,542,013 ordinary shares outstanding, of which 3,792,013 were
public shares and 5,750,000 were founder shares.
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The founder shares carry voting rights in connection with the
Extension Proposal and the Adjournment Proposal, and we have been
informed by our Sponsor and current directors and officers that
hold 5,750,000 founder shares in the aggregate, that they intend to
vote in favor of the Extension Proposal and the Adjournment
Proposal.
This Proxy Statement contains important information about the
Extraordinary General Meeting and the proposals. Please read it
carefully and vote your shares.
We will pay for the entire cost of soliciting proxies. We have
engaged Morrow Sodali LLC (“Morrow”) to assist in the solicitation
of proxies for the Extraordinary General Meeting. We have agreed to
pay Morrow a fee of $15,000. We will also reimburse Morrow for
reasonable out of pocket expenses and will indemnify Morrow and its
affiliates against certain claims, liabilities, losses, damages and
expenses. In addition to these proxy materials, our directors and
officers may also solicit proxies in person, by telephone or by
other means of communication. These parties will not be paid any
additional compensation for soliciting proxies. We may also
reimburse brokerage firms, banks and other agents for the cost of
forwarding proxy materials to beneficial owners.
This Proxy Statement is dated July [•], 2022 and is first being
sent to shareholders on or about July [•], 2022.
3
QUESTIONS AND ANSWERS ABOUT
THE EXTRAORDINARY GENERAL MEETING
These Questions and Answers are only summaries of the matters they
discuss. They do not contain all of the information that may be
important to you. You should read carefully the entire
document.
Q. Why am I receiving
this Proxy Statement?
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A. We
are a blank check company incorporated on November 15, 2019 as
a Cayman Islands exempted company and formed for the purpose of
effecting a merger, share exchange, asset acquisition, share
purchase, reorganization or similar business combination with one
or more businesses. On January 28, 2020, we consummated our
IPO from which we derived gross proceeds of $230,000,000. Like many
blank check companies, our Articles provide for the return of the
funds held in trust to the holders of ordinary shares sold in our
IPO if there is no qualifying business
combination(s) consummated on or before a certain date. On
January 25, 2022 our shareholders approved the First Extension
Resolution, pursuant to which the time we had to complete a
business combination was extended from January 28, 2022 to
July 28, 2022. In connection with passing the First Extension
Resolution, the holders of our Class A Ordinary Shares were
permitted to redeem their shares. In total, approximately 84% of
our Class A Ordinary Shareholders elected to redeem, resulting
in us paying $192,552,554 from the Trust Account. Our Board has
determined that it is in the best interests of our shareholders to
extend the date that we have to consummate a business combination
to the Extended Date in order that our shareholders can have the
chance to participate in an investment opportunity.
Further, if the Extension Proposal is approved our Extended Date
will be April 28, 2023, 39 months from when we completed our IPO,
which is longer than is typical for a special purpose acquisition
company. As disclosed in the registration statement filed in
connection with our IPO, had our IPO been conducted as a Rule 419
Offering, funds held in our trust account would have been returned
to investors 18 months after the effective date of our registration
statement had we not completed an acquisition prior to such
period.
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Q. What is being voted
on?
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A. You
are being asked to vote on:
•
a proposal by special resolution to extend the date by which the
Company must consummate a business combination from July 28,
2022 to April 28, 2023; and
•
a proposal to approve the adjournment of the Extraordinary General
Meeting to a later date or dates, if necessary, to permit further
solicitation and vote of proxies in the event that there are
insufficient votes for, or otherwise in connection with, the
approval of the Extension Proposal.
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We will not proceed with the Extension if redemptions of our public
shares would cause us to have less than $5,000,001 of net tangible
assets following approval of the Extension Proposal.
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If the Extension Proposal is approved and the Extension is
implemented, the removal of the Withdrawal Amount from the Trust
Account in connection with the Election will reduce the amount held
in the Trust Account following the Election. We cannot predict the
amount that will remain in the Trust Account if the Extension
Proposal is approved and the amount remaining in the Trust Account
may be only a small fraction of the approximately $38,037,700.26
that was in the Trust Account as of June 30, 2022. In such event,
we may need to obtain additional funds to complete the an initial
business combination, and there can be no assurance that such funds
will be available on terms acceptable or at all.
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If the Extension Proposal is not approved and we do not consummate
a business combination by July 28, 2022, as contemplated by
our IPO prospectus and in accordance with our Articles and the
First Extension Resolution, 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 (less taxes payable, and less up to $100,000 of interest
to pay liquidation 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);
and (iii) as promptly as reasonably possible following such
redemption, subject to the approval of our remaining shareholders
and our Board, liquidate and dissolve, subject in the case of
(ii) and (iii), to its obligations under Cayman Islands law to
provide for claims of creditors and in all cases subject to the
other requirements of applicable law. There will be no redemption
rights or liquidating distributions with respect to our warrants,
which will expire worthless in the event of our winding up. In the
event of a liquidation, holders of our founder shares, including
our Sponsor and our directors, will not receive any monies held in
the Trust Account as a result of their ownership of the founder
shares.
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Q. Why is the
Company proposing the Extension Proposal?
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A. Our
Articles and the First Extension Resolution provide for the return
of the funds held in the Trust Account to the holders of public
shares if there is no qualifying business
combination(s) consummated on or before July 28, 2022. As
we explain below, we may not be able to complete an initial
business combination by that date.
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The purpose of the Extension is to allow us more time to complete
an initial business combination. The Articles and the First
Extension Resolution provide that we have until July 28, 2022
to complete a business combination. We have identified a Target for
an initial business combination. While we believe the Target is a
compelling opportunity for our initial business combination and we
are currently in advanced negotiations for an initial business
combination involving the Target, our Board currently believes that
there will not be sufficient time to complete a business
combination by July 28, 2022. Therefore, our Board has
determined that it is in the best interests of our shareholders to
extend the date that we have to sign and consummate a business
combination to the Extended Date in order that our shareholders can
have the chance to participate in an investment opportunity. Our
Board has determined that an extension period of nine months is
appropriate in order to provide for sufficient time to consummate
the contemplated acquisition, as our Board believes that it could
take more than six months between the signing and closing of a
business combination given current timelines of other business
combinations and taking into account the potential length of the
preparation and SEC review of the proxy statement/registration
statement to be filed in connection therewith.
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Accordingly, our Board is proposing the Extension Proposal to
extend the date by which we must (i) consummate a business
combination; (ii) cease our operations except for the purpose
of winding up if we fail to complete such business combination, and
(iii) redeem all the public shares, from July 28, 2022 to
April 28, 2023.
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5
Q. Why
should I vote “FOR” the Extension Proposal?
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A. Our
Articles and the First Extension Resolution provide that if our
shareholders approve an extension of our obligation to redeem all
of our public shares if we do not complete our initial business
combination before July 28, 2022, we will provide our public
shareholders with the opportunity to redeem all or a portion of
their ordinary shares upon such approval at a per-share price, payable in cash, equal to the
aggregate amount then on deposit in the Trust Account, including
interest earned, divided by the number of then outstanding public
shares. We believe that this provision of the Articles and the
First Extension Resolution was included to protect our shareholders
from having to sustain their investments for an unreasonably long
period if we failed to find a suitable business combination in the
timeframe contemplated by the Articles and the First Extension
Resolution.
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Our Board believes current circumstances and negotiation warrant
providing those who believe a potential business combination to be
an attractive investment with an opportunity to consider such a
transaction, inasmuch as we are also affording shareholders who
wish to redeem their public shares the opportunity to do so. If you
do not elect to redeem your public shares, you will retain the
right to vote on any proposed initial business combination in the
future and the right to redeem your public shares in connection
with such initial business combination.
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Whether a holder of public shares votes in favor of or against the
Extension Proposal, if such proposal is approved, the holder may,
but is not required to, redeem all or a portion of its public
shares for a per-share price, payable
in cash, equal to the aggregate amount then on deposit in the Trust
Account, including interest earned, divided by the number of then
outstanding public shares. We will not proceed with the Extension
if redemptions of our public shares would cause us to have less
than $5,000,001 of net tangible assets following approval of the
Extension Proposal.
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Liquidation of the Trust Account is a fundamental obligation of the
Company to the public shareholders and we are not proposing and
will not propose to change that obligation to the public
shareholders. If holders of public shares do not elect to redeem
their public shares, such holders will retain redemption rights in
connection with any future initial business combination we may
propose. Assuming the Extension Proposal is approved, we will have
until the Extended Date to complete a business combination.
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Our Board recommends that you vote in favor of the Extension
Proposal.
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Q. Why
should I vote “FOR” the Adjournment Proposal?
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A. If
the Adjournment Proposal is not approved by our shareholders, our
Board may not be able to adjourn the Extraordinary General Meeting
to a later date or dates in the event that there are insufficient
votes for, or otherwise in connection with, the approval of the
Extension Proposal.
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If presented, our Board recommends that you vote in favor of the
Adjournment Proposal.
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Q. When would the Board
abandon the Extension Proposal?
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A. Our
Board will abandon the Extension if our shareholders do not approve
the Extension Proposal.
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6
Q. How do the
Company insiders intend to vote their shares?
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A. Our
Sponsor and current directors and officers own an aggregate of
5,750,000 founder shares. Such founder shares represent
approximately 60.3% of our issued and outstanding ordinary
shares.
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The founder shares carry voting rights in connection with the
Extension Proposal and the Adjournment Proposal, and we have been
informed by our Sponsor and current directors and officers that
they intend to vote in favor of the Extension Proposal and the
Adjournment Proposal.
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Q. What vote is required to adopt the Extension
Proposal?
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A. The
approval of the Extension Proposal requires a special resolution
under the Cayman Islands Companies Act and the Articles, being the
affirmative vote of the holders of at least a two-thirds majority of the then issued and
outstanding ordinary shares who, being present and entitled to vote
at the Extraordinary General Meeting, vote at the Extraordinary
General Meeting.
A quorum of our shareholders is necessary to hold a valid
Extraordinary General Meeting. A quorum will be present at the
Extraordinary General Meeting if the holders of a majority of the
issued and outstanding ordinary shares entitled to vote at the
Extraordinary General Meeting are represented in person or by
proxy. As of the record date for the Extraordinary General Meeting,
the holders of at least 4,771,007 ordinary shares would be required
to achieve a quorum. Our Sponsor and current directors and officers
own an aggregate of 5,750,000 founder shares, which represent
approximately 60.3% of our issued and outstanding ordinary shares.
Therefore, the shares held by our Sponsor and current directors and
officers are sufficient to constitute a quorum.
Assuming all of the issued and outstanding ordinary shares are
voted at the Extraordinary General Meeting, the Extension Proposal
will be approved if 547,729 of the outstanding Class A ordinary
shares are voted in favor. If the minimum number of holders
required to constitute a quorum are present at the Extraordinary
General Meetings, then the Extension Proposal will be approved even
if none of the outstanding Class A ordinary shares are voted in
favor. The shares held by our Sponsor and current directors and
officers are sufficient to approve the Extension Proposal without
any Class A ordinary shares voted in favor if 8,712,121 or fewer
ordinary shares are voted at the Extraordinary General Meeting. Our
Sponsor and current directors and officers intend to vote in favor
of the Extension Proposal and the Adjournment Proposal.
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Q. What vote is
required to approve the Adjournment Proposal?
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A. The
approval of the Adjournment Proposal requires the affirmative vote
of the holders of a majority of the then issued and outstanding
ordinary shares who, being present and entitled to vote at the
Extraordinary General Meeting, vote at the Extraordinary General
Meeting.
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Q. What if I
do not want to vote “FOR” the Extension Proposal?
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A. If
you do not want the Extension Proposal to be approved, you must
vote “AGAINST” the proposals. If the Extension Proposal is
approved, and the Extension is implemented, then the Withdrawal
Amount will be withdrawn from the Trust Account and paid pro rata
to the redeeming holders. You will still be entitled to make the
Election if you vote against, abstain or do not vote on the
Extension Proposal.
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Broker “non-votes” and abstentions
will count towards the quorum requirement for the Extraordinary
General Meeting but will have no effect with respect to the
approval of the Extension Proposal.
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7
Q. How are the
funds in the Trust Account currently being held?
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A. With
respect to the regulation of special purpose acquisition companies
(“SPACs”) such as the Company, on March 30, 2022, the SEC issued
proposed rules (the “SPAC Rule Proposals”) relating to, among other
items, disclosures in business combination transactions involving
SPACs and private operating companies; the condensed financial
statement requirements applicable to transactions involving shell
companies; the use of projections by SPACs in SEC filings in
connection with proposed business combination transactions; the
potential liability of certain participants in proposed business
combination transactions; and the extent to which SPACs could
become subject to regulation under the Investment Company Act of
1940, as amended (the “Investment Company Act”), including a
proposed rule that would provide SPACs a safe harbor from treatment
as an investment company if they satisfy certain conditions that
limit a SPAC’s duration, asset composition, business purpose and
activities.
With regard to the SEC’s investment company proposals included in
the SPAC Rule Proposals, while the funds in the Trust Account have,
since the Company’s initial public offering in January 2020, been
held only in U.S. government treasury bills with a maturity of 185
days or less or in money market funds investing solely in U.S.
Treasuries, to mitigate the risk of being viewed as operating an
unregistered investment company (including pursuant to the
subjective test of Section 3(a)(1)(A) of the Investment Company Act
of 1940), on July 13, 2022, the Company instructed Continental
Stock Transfer & Trust Company, the trustee managing the Trust
Account, to hold all funds in the Trust Account in cash until the
earlier of consummation of a business combination and liquidation
of the Company.
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Q. Is the Company
subject to the Investment Company Act of 1940?
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A. As
indicated above, the Company completed its initial public offering
in January 2020 and has operated as a blank check company searching
for a target business with which to consummate an initial business
combination since such time (or approximately 30 months). On March
30, 2022, the SEC issued the SPAC Rule Proposals, which would
provide a safe harbor for such companies from the definition of
“investment company” under Section 3(a)(1)(A) of the Investment
Company Act, provided that they satisfy certain conditions that
limit a company’s duration, asset composition, business purpose and
activities. The duration component of the proposed safe harbor rule
would require the company to file a Current Report on Form
8-K with the SEC announcing that it
has entered into an agreement with the target company (or
companies) to engage in an initial business combination no later
than 18 months after the effective date of the company’s
registration statement for its initial public offering. The company
would then be required to complete its initial business combination
no later than 24 months after the effective date of its
registration statement for its initial public offering. Because we
have been searching for a target business with which to consummate
a business combination since January 2020, we would fall outside
the scope of the proposed safe harbor of the SPAC Rule
Proposals.
The SEC has indicated that it believes that there are serious
questions concerning the applicability of the Investment Company
Act to special purpose acquisition companies, including a company
such as ours, that does not complete its initial business
combination within the proposed time frame set forth in the SPAC
Rule Proposals. As a result, it is possible that a claim could be
made that we have been operating as an unregistered investment
company. If the Company was deemed to be an investment company for
purposes of the Investment Company Act and found to have been
operating as an unregistered investment company, it could cause the
Company to liquidate. If we are forced to liquidate, investors in
the Company would not be able to participate in any benefits of
owning stock in an operating business, including the potential
appreciation of our stock following such a transaction and our
warrants would expire worthless.
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8
Q. What happens if
the Extension Proposal is not approved?
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A. Our
Board will abandon the Extension if our shareholders do not approve
the Extension Proposal. If the Extension Proposal is not approved
and we do not consummate a business combination by July 28,
2022, as contemplated by our IPO prospectus and in accordance with
our Articles and the First Extension Resolution, 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 (less taxes payable, and less up to $100,000 of
interest to pay liquidation 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);
and (iii) as promptly as reasonably possible following such
redemption, subject to the approval of our remaining shareholders
and our Board, liquidate and dissolve, subject in the case of
(ii) and (iii), to its obligations under Cayman Islands law to
provide for claims of creditors and in all cases subject to the
other requirements of applicable law.
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There will be no redemption rights or liquidating distributions
with respect to our warrants, which will expire worthless in the
event of our winding up. In the event of a liquidation, holders of
our founder shares, including our Sponsor and our directors, will
not receive any monies held in the Trust Account as a result of
their ownership of the founder shares.
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Q. If the
Extension Proposal is approved, what happens next?
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A. We
will continue our efforts to complete an initial business
combination. Upon approval of the Extension Proposal by the
requisite number of votes, the Extension will become effective. We
will remain a reporting company under the Securities
Exchange Act of 1934 (the “Exchange Act”) and
our units, public shares and warrants will remain publicly
traded.
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If the Extension Proposal is approved, the removal of the
Withdrawal Amount from the Trust Account will reduce the amount
remaining in the Trust Account and increase the percentage interest
of our ordinary shares held by our Sponsor and our directors as a
result of their ownership of the founder shares.
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If the Extension Proposal is approved but we do not complete a
business combination by the Extended Date, 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 (less taxes payable, and less up to $100,000 of interest
to pay liquidation 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);
and (iii) as promptly as reasonably possible following such
redemption, subject to the approval of our remaining shareholders
and our Board, liquidate and dissolve, subject in the case of
(ii) and (iii), to its obligations under Cayman Islands law to
provide for claims of creditors and in all cases subject to the
other requirements of applicable law. We cannot assure you that the
per share distribution from the Trust Account, if we liquidate,
will not be less than $10.00 due to unforeseen claims of
creditors.
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There will be no redemption rights or liquidating distributions
with respect to our warrants, which will expire worthless in the
event of our winding up. In the event of a liquidation, holders of
our founder shares, including our Sponsor and our directors, will
not receive any monies held in the Trust Account as a result of
their ownership of the founder shares.
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9
Q. What happens to
the Company’s outstanding warrants if the Extension Proposal is not
approved?
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A. If
the Extension Proposal is not approved and we have not consummated
a business combination by July 28, 2022, 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 (less taxes payable, and less up to $100,000 of
interest to pay liquidation 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);
and (iii) as promptly as reasonably possible following such
redemption, subject to the approval of our remaining shareholders
and our board, liquidate and dissolve, subject in the case of
(ii) and (iii), to its obligations under Cayman Islands law to
provide for claims of creditors and in all cases subject to the
other requirements of applicable law.
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There will be no redemption rights or liquidating distributions
with respect to our warrants, which will expire worthless in the
event of our winding up. In the event of a liquidation, holders of
our founder shares, including our Sponsor and our directors, will
not receive any monies held in the Trust Account as a result of
their ownership of the founder shares.
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Q. What happens to
the Company’s outstanding warrants if the Extension Proposal is
approved?
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A. If
the Extension Proposal is approved, we will retain the blank check
company restrictions previously applicable to us and continue to
attempt to consummate an initial business combination until the
Extended Date. The public warrants will remain outstanding and will
become exercisable for one Class A ordinary share 30 days
after the completion of an initial business combination at an
initial exercise price of $11.50 per warrant for a period of
five years, provided we have an effective registration
statement under the Securities Act of 1933 (the
“Securities Act”) covering the ordinary shares issuable upon
exercise of the warrants and a current prospectus relating to them
is available (or we permit holders to exercise warrants on a
cashless basis).
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Q. If I do
not exercise my redemption rights now, would I still be able
to exercise my redemption rights in connection with any future
initial business combination?
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A. Unless
you elect to redeem your shares at this time, you will be able to
exercise redemption rights in respect of any future initial
business combination, subject to any limitations set forth in our
Articles.
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Q. How do I
change my vote?
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A. You
may change your vote by sending a later-dated, signed proxy card to our Secretary at SCVX
Corp., 1220 L St. NW, Suite 100-397, Washington, DC 20005, so that it is received
prior to the Extraordinary General Meeting or by attending the
Extraordinary General Meeting in person and voting. You also may
revoke your proxy by sending a notice of revocation to the same
address, which must be received by our Secretary prior to the
Extraordinary General Meeting.
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Please note, however, that if on the record date your shares were
held, not in your name, but rather in an account at a brokerage
firm, custodian bank, or other nominee then you are the beneficial
owner of shares held in “street name” and these proxy materials are
being forwarded to you by that organization. If your shares are
held in street name, and you wish to attend the Extraordinary
General Meeting and vote at the Extraordinary General Meeting, you
must bring to the Extraordinary General Meeting a legal proxy from
the broker, bank or other nominee holding your shares, confirming
your beneficial ownership of the shares and giving you the right to
vote your shares.
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10
Q. How are votes
counted?
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A. Votes
will be counted by the inspector of election appointed for the
Extraordinary General Meeting, who will separately count “FOR” and
“AGAINST” votes, abstentions and broker non-votes. The Extension Proposal must be approved as
special resolution, being the affirmative vote of the holders of at
least a two-thirds majority of the
then issued and outstanding ordinary shares who, being present and
entitled to vote at the Extraordinary General Meeting, vote at the
Extraordinary General Meeting, and the Adjournment Proposal
requires the affirmative vote of the holders of at least a majority
of the then issued and outstanding ordinary shares who, being
present and entitled to vote at the Extraordinary General Meeting,
vote at the Extraordinary General Meeting.
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Accordingly, a shareholder’s failure to vote by proxy or to vote in
person at the Extraordinary General Meeting means that such
shareholder’s ordinary shares will not count towards the quorum
requirement for the Extraordinary General Meeting and will not be
voted. An abstention or broker non-vote will be counted towards the quorum
requirement but will not count as a vote cast at the Extraordinary
General Meeting.
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Q. If my shares
are held in “street name,” will my broker automatically vote them
for me?
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A. No.
Under the rules of various national and regional securities
exchanges, your broker, bank, or nominee cannot vote your shares
with respect to non-discretionary
matters unless you provide instructions on how to vote in
accordance with the information and procedures provided to you by
your broker, bank, or nominee. We believe all the proposals
presented to the shareholders will be considered non-discretionary and therefore your broker, bank, or
nominee cannot vote your shares without your instruction. Your
bank, broker, or other nominee can vote your shares only if you
provide instructions on how to vote. You should instruct your
broker to vote your shares in accordance with directions you
provide. If your shares are held by your broker as your nominee,
which we refer to as being held in “street name,” you may need to
obtain a proxy form from the institution that holds your shares and
follow the instructions included on that form regarding how to
instruct your broker to vote your shares.
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Q. What is a
quorum requirement?
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A. A
quorum of our shareholders is necessary to hold a valid
Extraordinary General Meeting. A quorum will be present at the
Extraordinary General Meeting if the holders of a majority of the
issued and outstanding ordinary shares entitled to vote at the
Extraordinary General Meeting are represented in person or by
proxy. As of the record date for the Extraordinary General Meeting,
the holders of at least 4,771,007 ordinary shares would be required
to achieve a quorum. Our Sponsor and current directors and officers
own an aggregate of 5,750,000 founder shares, which represent
approximately 60.3% of our issued and outstanding ordinary shares.
Therefore, the shares held by our Sponsor and current directors and
officers are sufficient to constitute a quorum. Our Sponsor and
current directors and officers intend to vote in favor of the
Extension Proposal and the Adjournment Proposal.
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Your shares will be counted towards the quorum only if you submit a
valid proxy (or one is submitted on your behalf by your broker,
bank or other nominee) or if you vote in person at the
Extraordinary General Meeting. Abstentions and broker
non-votes will be counted towards the
quorum requirement, but will not count as a vote cast at the
Extraordinary General Meeting. In the absence of a quorum, the
chairman of the meeting has power to adjourn the Extraordinary
General Meeting.
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11
Q. Who can vote at
the Extraordinary General Meeting?
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A. Only
holders of record of our ordinary shares at the close of business
on June 29, 2022 are entitled to have their vote counted at the
Extraordinary General Meeting and any adjournments or postponements
thereof. On this record date, 9,542,013 ordinary shares were
outstanding and entitled to vote.
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Shareholder of Record: Shares Registered in Your Name. If on the
record date your shares were registered directly in your name with
our transfer agent, Continental Stock Transfer & Trust
Company, then you are a shareholder of record. As a shareholder of
record, you may vote in person at the Extraordinary General Meeting
or vote by proxy. Whether or not you plan to attend the
Extraordinary General Meeting in person, we urge you to fill out
and return the enclosed proxy card to ensure your vote is
counted.
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Beneficial Owner: Shares Registered in the Name of a Broker or
Bank. If on the record date your shares were held, not in your
name, but rather in an account at a brokerage firm, bank, dealer,
or other similar organization, then you are the beneficial owner of
shares held in “street name” and these proxy materials are being
forwarded to you by that organization. As a beneficial owner, you
have the right to direct your broker or other agent on how to vote
the shares in your account. You are also invited to attend the
Extraordinary General Meeting. However, since you are not the
shareholder of record, you may not vote your shares in person at
the Extraordinary General Meeting unless you request and obtain a
valid proxy from your broker or other agent.
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Q. Does the Board
recommend voting for the approval of the Extension Proposal and the
Adjournment Proposal?
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A. Yes.
After careful consideration of the terms and conditions of these
proposals, our Board has determined that the Extension Proposal
and, if presented, the Adjournment Proposal are in the best
interests of the Company and its shareholders. The Board recommends
that our shareholders vote “FOR” the Extension Proposal and the
Adjournment Proposal.
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Q. What interests
do the Company’s Sponsor, directors and officers have in the
approval of the proposals?
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A. Our
Sponsor, directors and officers will benefit from the proposals and
the consummation of a business combination, and may be incentivized
to complete an acquisition of a less favorable target company or on
terms less favorable to shareholders rather than liquidate.
Additionally, our Sponsor, directors and officers may have
interests in the proposals that may be different from, or in
addition to, or which may conflict with your interests as a
shareholder. These interests include, among other things:
• the
fact that our Sponsor, directors and officers have agreed not to
redeem any of their shares in connection with a shareholder vote to
approve a business combination;
• the
fact that our Sponsor paid an aggregate of $25,000 for 5,750,000
Class B ordinary shares, all of which are currently owned by the
Sponsor, directors and officers. As a result, our Sponsor,
directors and officers will have rates of return on their
respective investments which differ from, and may be higher than,
the rate of return of the Company’s shareholders who purchased
ordinary shares at various other prices, including ordinary shares
included in SCVX units that were sold at $10.00 per unit in our
initial public offering, and which may be positive while
shareholders holding shares in the post-business combination company experience a
negative rate of return on their investment. Additionally, the
Class B shares will expire worthless if an initial business
combination is not consummated by July 28, 2022 (unless such date
is extended pursuant to the Extension Proposal);
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12
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• the
fact that our Sponsor, directors and officers have agreed to waive
their rights to liquidating distributions from the Trust Account
with respect to any ordinary shares (other than public shares) held
by them if the Company fails to complete an initial business
combination by July 28, 2022 (unless such date is extended pursuant
to the Extension Proposal);
• the
fact that our Sponsor paid $6,600,000 for 6,600,000 private
placement warrants, and the fact that the private placement
warrants will expire worthless if a business combination is not
consummated by July 28, 2022 (unless such date is extended pursuant
to the Extension Proposal); and
• the
fact that our Sponsor, directors and officers will lose their
entire investment in SCVX and will not be reimbursed for any
out-of-pocket expenses if an initial
business combination is not consummated by July 28, 2022 (unless
such date is extended pursuant to the Extension Proposal).
See the section entitled “The Extension
Proposal — Interests of our Sponsor, Directors and
Officers.”
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Q. Who is the
Company’s Sponsor?
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A. The
Company’s sponsor is SCVX USA LLC, a Delaware limited liability
company. The Sponsor currently owns 4,657,500 Class B ordinary
shares of the Company. Strategic Cyber Ventures, LLC is the
managing member of our Sponsor, and owns approximately 79% of the
ownership interests of the Sponsor, with the remaining ownership
interests held by certain of our directors and officers.
Substantially all of the voting interests of Strategic Cyber
Ventures, LLC are held by Hudson Bay Master Fund Ltd., which is
managed by Hudson Bay Capital Management LP. Hudson Bay Capital
Management LP is managed by Hudson Bay Capital GP LLC of which
Sander Gerber is the managing member. Our Sponsor is not controlled
by, and does not have substantial ties with any foreign persons, as
that term is defined by the Committee on Foreign Investment in the
United States (“CFIUS”) regulations at 31 CFR § 800.224. The
Company does not believe that any of the above facts or
relationships would subject the proposed business combination to
regulatory review, including review by CFIUS.
However, if a potential business combination were to become subject
to CFIUS review, CFIUS could decide to block or delay our proposed
initial business combination, impose conditions with respect to
such initial business combination or request the President of the
United States to order us to divest all or a portion of the U.S.
target business of our initial business combination that we
acquired without first obtaining CFIUS approval. The time required
for CFIUS to conduct its review and any remedy imposed by CFIUS
could prevent the Company from completing its initial business
combination and require the Company to liquidate. In that case,
investors would be entitled to redemption of 100% of the public
shares, at a per-share price, payable
in cash, equal to the quotient obtained by dividing (A) the
aggregate amount then on deposit in the Trust Account, including
interest not previously released to the Company to pay its income
taxes (less up to $100,000 of such net interest to pay dissolution
expenses), by (B) the total number of then-issued and outstanding public shares, which
redemption will completely extinguish public shareholders’ rights
as shareholders (including the right to receive further liquidating
distributions, if any). Moreover, investors would lose the
investment opportunity in a target company, any price appreciation
in the combined companies, and the warrants would expire
worthless.
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13
Q. Do I have
appraisal rights if I object to the Extension
Proposal?
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A. Our
shareholders do not have appraisal rights in connection with the
Extension Proposal under Cayman Islands law.
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Q. What do I
need to do now?
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A. We
urge you to read carefully and consider the information contained
in this Proxy Statement, and to consider how the proposals will
affect you as a shareholder. You should then vote as soon as
possible in accordance with the instructions provided in this Proxy
Statement and on the enclosed proxy card.
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Q. How do I
vote?
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A. If
you are a holder of record of our ordinary shares, you may vote in
person at the Extraordinary General Meeting or by submitting a
proxy for the Extraordinary General Meeting. Whether or not you
plan to attend the Extraordinary General Meeting in person, we urge
you to vote by proxy to ensure your vote is counted. You may submit
your proxy by completing, signing, dating and returning the
enclosed proxy card in the accompanying pre-addressed postage paid envelope. You may still
attend the Extraordinary General Meeting and vote in person if you
have already voted by proxy.
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If your ordinary shares are held in “street name” by a broker or
other agent, you have the right to direct your broker or other
agent on how to vote the shares in your account. You are also
invited to attend the Extraordinary General Meeting. However, since
you are not the shareholder of record, you may not vote your shares
in person at the Extraordinary General Meeting unless you request
and obtain a valid proxy from your broker or other agent.
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Q. How do I
redeem my ordinary shares?
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A. Each
of our public shareholders may submit an election that, if the
Extension is implemented, such public shareholder elects to redeem
all or a portion of his 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, divided by the number of then outstanding public
shares. You will also be able to redeem your public shares in
connection with any proposed initial business combination, or if we
have not consummated a business combination by the Extended
Date.
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In order to tender your ordinary shares for redemption, you must
elect either to physically tender your share certificates to
Continental Stock Transfer & Trust Company, the Company’s
transfer agent, at Continental Stock Transfer & Trust
Company, 1 State Street 30th Floor,
New York, New York 10004, Attn: Mark Zimkind,
mzimkind@continentalstock.com, or to deliver your shares to the
transfer agent electronically using DTC’s DWAC (Deposit/Withdrawal
At Custodian) system, which election would likely be determined
based on the manner in which you hold your shares. You should
tender your ordinary shares in the manner described above prior to
5:00 p.m. Eastern Time on July 25, 2022 (two business
days before the Extraordinary General Meeting).
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Q. What
should I do if I receive more than one set of voting
materials?
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A. You
may receive more than one set of voting materials, including
multiple copies of this Proxy Statement and multiple proxy cards or
voting instruction cards, if your shares are registered in more
than one name or are registered in different accounts. For example,
if you hold your shares in more than one brokerage account, you
will receive a separate voting instruction card for each brokerage
account in which you hold shares. Please complete, sign, date and
return each proxy card and voting instruction card that you receive
in order to cast a vote with respect to all of your shares.
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14
Q. Who is paying
for this proxy solicitation?
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A. We
will pay for the entire cost of soliciting proxies. We have engaged
Morrow to assist in the solicitation of proxies for the
Extraordinary General Meeting. We have agreed to pay Morrow a fee
of approximately $15,000. We will also reimburse Morrow for
reasonable out of pocket expenses and will indemnify Morrow and its
affiliates against certain claims, liabilities, losses, damages and
expenses. In addition to these proxy materials, our directors and
officers may also solicit proxies in person, by telephone or by
other means of communication. These parties will not be paid any
additional compensation for soliciting proxies. We may also
reimburse brokerage firms, banks and other agents for the cost of
forwarding proxy materials to beneficial owners.
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Q. Who can help
answer my questions?
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A. If
you have questions about the proposals or if you need additional
copies of the Proxy Statement or the enclosed proxy card you should
contact our proxy solicitor:
Morrow Sodali LLC
333 Ludlow Street, 5th Floor, South
Tower
Stamford, Connecticut 06902
Individuals can call toll-free at:
(800) 662-5200
Banks and brokers can call collect at: (203) 658-9400
E-mail:
SCVX.info@investor.morrowsodali.com
If you have questions regarding the certification of your position
or delivery of your ordinary shares, please contact:
Continental Stock Transfer & Trust Company
1 State Street 30th Floor
New York, New York 10004
Attention: Mark Zimkind
E-mail: mzimkind@continentalstock.com
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You may also obtain additional information about us from documents
we file with the U.S. Securities and Exchange Commission (the
“SEC”) by following the instructions in the section entitled “Where
You Can Find More Information.”
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15
FORWARD-LOOKING
STATEMENTS
This Proxy Statement contains statements that are
forward-looking and as such are not
historical facts. This includes, without limitation, statements
regarding the Company’s financial position, business strategy and
the plans and objectives of management for future operations. These
statements constitute projections, forecasts and
forward-looking statements, and are
not guarantees of performance. They involve known and unknown
risks, uncertainties, assumptions and other factors that may cause
the actual results, performance or achievements of the Company to
be materially different from any future results, performance or
achievements expressed or implied by these statements. Such
statements can be identified by the fact that they do not relate
strictly to historical or current facts. When used in this Proxy
Statement, words such as “anticipate,” “believe,” “continue,”
“could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,”
“possible,” “potential,” “predict,” “project,” “should,” “strive,”
“would” and similar expressions may identify forward-looking statements, but the absence of these
words does not mean that a statement is not forward-looking. When the Company discusses its
strategies or plans, it is making projections, forecasts or
forward-looking statements. Such
statements are based on the beliefs of, as well as assumptions made
by and information currently available to, the Company’s
management. Actual results and shareholders’ value will be affected
by a variety of risks and factors, including, without limitation,
international, national and local economic conditions, merger,
acquisition and business combination risks, financing risks,
geo-political risks, acts of terror or
war, and those risk factors described under
“Item 1A. Risk Factors” of the Company’s amended Annual
Report on Form 10-K filed with
the SEC on April 28, 2022 and in other reports the Company
files with the SEC. Many of the risks and factors that will
determine these results and shareholders’ value are beyond the
Company’s ability to control or predict.
All such forward-looking statements
speak only as of the date of this Proxy Statement. The Company
expressly disclaims any obligation or undertaking to release
publicly any updates or revisions to any forward-looking statements contained herein to reflect
any change in the Company’s expectations with regard thereto or any
change in events, conditions or circumstances on which any such
statement is based. All subsequent written or oral
forward-looking statements
attributable to us or persons acting on the Company’s behalf are
qualified in their entirety by this “Forward-Looking Statements” section.
16
BACKGROUND
We are a blank check company incorporated on November 15, 2019
as a Cayman Islands exempted company and formed for the purpose of
effecting a merger, share exchange, asset acquisition, share
purchase, reorganization or similar business combination with one
or more businesses.
On January 28, 2020, we consummated the IPO of our units (the
“units”), with each unit consisting of one Class A ordinary
share, par value $0.0001 per share, which we refer to as the
“public shares,” and one-half of one
warrant. Simultaneously with the closing of the IPO, we completed
the private sale of 6,600,000 warrants (the “private placement
warrants”) at a purchase price of $1.00 per private placement
warrant, to our Sponsor generating gross proceeds to us of
$6,600,000. The private placement warrants are substantially
identical to the warrants sold as part of the units in the IPO,
except that our Sponsor has agreed not to transfer, assign or sell
any of the private placement warrants (except to certain permitted
transferees) until 30 days after the completion of our initial
business combination. The private placement warrants are also not
redeemable by us so long as they are held by our Sponsor or its
permitted transferees, and they may be exercised by our Sponsor and
its permitted transferees on a cashless basis.
Following the closing of the IPO, a total of $230,000,000 from the
net proceeds of the sale of the units in the IPO and certain of the
proceeds of the sale of the private placement warrants was placed
in a Trust Account. The Trust Account may be invested only in
U.S. government treasury bills with a maturity of one hundred
and eighty (180) days or less or in money market funds
investing solely in United States Treasuries and meeting
certain conditions under Rule 2a-7 under the Investment Company
Act of 1940, as amended, which invest only in direct
U.S. government obligations. On January 25, 2022 our
shareholders approved the First Extension Resolution, pursuant to
which the time we had to complete a business combination was
extended from January 28, 2022 to July 28, 2022. In
connection with passing the First Extension Resolution, the holders
of our Class A Ordinary Shares were permitted to redeem their
shares. In total, approximately 84% of our Class A Ordinary
Shareholders elected to redeem, resulting in us paying $192,552,554
from the Trust Account. At June 30, 2022, funds in the Trust
Account totaled $38,037,700.26 and were held in money market
funds.
As previously disclosed, on March 4, 2022, SCVX received notice
from the New York Stock Exchange (“NYSE”) that it would be delisted
following market close on, March 8, 2022, in accordance with NYSE’s
continued listing standard under Rule 802.01 of NYSE’s Listed
Company Manual, which requires acquisition companies to have an
average aggregate global market capitalization of at least
$50,000,000 and an average aggregate global market capitalization
of $40,000,000 attributable to publicly-held shares, in each case over 30 consecutive
trading days. SCVX had previously announced, on March 1, 2022, that
it would voluntarily delist from NYSE and transfer its listing to
NYSE American, and the Company was approved for listing on NYSE
American on March 3, 2022. However, on March 4, 2022, NYSE American
informed the Company that, upon further review of its application,
the Company did not meet certain initial listing requirements of
NYSE American.
On July 13, 2022, the Company instructed Continental Stock Transfer
& Trust Company, the trustee managing the Trust Account, to
hold all funds in the Trust Account in cash until the earlier of
consummation of a business combination and liquidation of the
Company.
Our Sponsor, directors and officers have interests in the proposals
that may be different from, or in addition to, your interests as a
shareholder. These interests include ownership of founder shares
and warrants that may become exercisable in the future and loans by
them that will not be repaid in the event of our winding up and the
possibility of future compensatory arrangements. See the section
entitled “The Extension Proposal — Interests of our
Sponsor, Directors and Officers.”
On the record date of the Extraordinary General Meeting, there were
9,542,013 ordinary shares outstanding, of which 3,792,013 were
public shares and 5,750,000 were founder shares. The founder shares
carry voting rights in connection with the Extension Proposal and
the Adjournment Proposal, and we have been informed by our Sponsor
and directors that hold 5,750,000 founder shares in the aggregate,
that they intend to vote in favor of the Extension Proposal and the
Adjournment Proposal.
Our principal executive offices are located at 1220 L St NW,
Suite 100-397, Washington, DC
20005 and our telephone number is (202) 681-8461.
17
PROPOSAL 1 — THE
EXTENSION PROPOSAL
The
Extension Proposal
We are proposing to extend the date by which we have to consummate
a business combination to the Extended Date.
If the Extension Proposal is not approved and we do not consummate
a business combination by July 28, 2022, as contemplated by
our IPO prospectus and in accordance with our Articles and the
First Extension Resolution, 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 (less taxes payable, and less up to $100,000 of interest
to pay liquidation 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);
and (iii) as promptly as reasonably possible following such
redemption, subject to the approval of our remaining shareholders
and our board, liquidate and dissolve, subject in the case of
(ii) and (iii), to its obligations under Cayman Islands law to
provide for claims of creditors and in all cases subject to the
other requirements of applicable law. There will be no redemption
rights or liquidating distributions with respect to our warrants,
which will expire worthless in the event of our winding up. In the
event of a liquidation, holders of our founder shares, including
our Sponsor and our directors, will not receive any monies held in
the Trust Account as a result of their ownership of the founder
shares.
The purpose of the Extension is to allow us more time to complete
an initial business combination. The Articles and the First
Extension Resolution provide that we have until July 28, 2022
to complete a business combination. We have identified a Target for
an initial business combination. While we believe the Target is a
compelling opportunity for our initial business combination and we
are currently in advanced negotiations for an initial business
combination involving the Target, our Board currently believes that
there will not be sufficient time to complete a business
combination by July 28, 2022. Therefore, our Board has
determined that it is in the best interests of our shareholders to
extend the date that we have to consummate a business combination
to the Extended Date in order that our shareholders can have the
chance to participate in an investment opportunity. This Extension
Proposal is being sought in connection with a proposed business
combination regarding which we are currently in discussion.
The
Company’s Previous Efforts at Completing an Initial Business
Combination
Following the completion of its initial public offering, on
January 28, 2020, SCVX, along with representatives of SCVX’s
financial advisor, Credit Suisse Securities (USA) LLC (“Credit
Suisse”), initiated contact, or were contacted by, numerous
individuals and entities or their financial advisors with respect
to numerous business combination opportunities in the cybersecurity
and enterprise software industries. SCVX considered businesses that
it believed had attractive long-term
growth potential, were well-positioned
within their industry and were led by an experienced management
team with a proven track record and complementary capabilities.
Additional criteria that SCVX considered for potential target
companies are described in its prospectus related to its initial
public offering. As part of this process, SCVX identified and
evaluated more than 200 potential acquisition targets and conducted
initial diligence in connection with 12 of such potential
acquisition targets. SCVX submitted non-binding letters of intent to seven potential
acquisition targets following evaluation of, and discussions with,
each such potential acquisition target. SCVX did not pursue a
potential transaction with the other potential acquisition targets
for a variety of factors, including the ability to reach a
valuation that was acceptable to both sides and mutual decisions to
pursue potential alternative transactions.
As previously disclosed, on September 25, 2020, SCVX signed a
non-binding letter of intent with a
company operating in the cybersecurity risk assessment space
(“Company A”). From that time through November 2020,
representatives of SCVX engaged with members of the management of
Company A relating to a potential business combination with SCVX,
reviewed Company A’s financials, revenue projections and business
plan, and discussed various business diligence topics with Company
A’s management. Counsel to SCVX (“SCVX Counsel”), were provided
with access to the virtual data room of Company A and began
conducting legal due diligence review and negotiating a draft
merger agreement and related agreements with counsel to Company
A. On October 26, 2020, Credit Suisse commenced wall
crossing potential PIPE investors, and over the next
several weeks, representatives
18
from SCVX, Company A and Credit Suisse met with potential
investors. The PIPE was not able to be raised as a result of the
market environment at that time. There were some efforts between
SCVX and Company A to renegotiate deal valuation, but ultimately,
on November 17, 2020, a mutual determination was made by SCVX
and Company A to end discussions regarding a potential business
combination.
As previously disclosed, on March 3, 2021 SCVX and Bright
Machines, Inc. (“Bright Machines”) executed a letter of intent with
respect to a possible initial business combination (the “BM letter
of intent”). The BM letter of intent set forth proposed terms for
an initial business combination and also included a 30-day mutual exclusivity period. Throughout March,
April and May of 2021, the parties negotiated various terms of the
potential business combination and definitive documents with
respect thereto, including various extensions to the mutual
exclusivity period. On April 2, 2021, SCVX and Bright Machines
extended the exclusivity period in the BM letter of intent for an
additional two weeks. On April 16, 2021, SCVX and Bright
Machines extended the exclusivity period in the BM letter of intent
for an additional week. On May 15, 2021, the parties executed
a merger agreement (the “Bright Machines Merger Agreement”) and
related ancillary agreements, and PIPE investors delivered executed
subscription agreements for an aggregate amount of gross proceeds
of $205 million from the sale of 20,500,000 shares of common
stock of the post-closing company,
including $75 million from XN Exponent Master Fund LP and
$50 million from Hudson Bay Master Fund Ltd. (“Hudson Bay”).
Bright Machines and SCVX issued a joint press release announcing
the business combination before the opening of trading on
May 17, 2021.
As previously disclosed, on December 11, 2021, SCVX and Bright
Machines entered into a Mutual Termination of Merger Agreement (the
“Termination Agreement”) pursuant to which the parties agreed to
mutually terminate the Bright Machines Merger Agreement, effective
as of such date. The parties determined to enter into the
Termination Agreement in light of the low likelihood that the
transaction could be completed prior to the January 15, 2022
“outside date” set forth in the Bright Machines Merger Agreement
and then-current market
conditions.
As previously disclosed, on January 25, 2022, our shareholders
approved the First Extension Resolution, pursuant to which the time
we had to complete a business combination was extended from
January 28, 2022 to July 28, 2022. In connection with
passing the First Extension Resolution, the holders of our
Class A Ordinary Shares were permitted to redeem their shares.
In total, approximately 84% of our Class A Ordinary
Shareholders elected to redeem, resulting in us paying $192,552,554
from the Trust Account.
As previously disclosed, on March 4, 2022, SCVX received
notice from NYSE that it would be delisted following market close
on, March 8, 2022, in accordance with NYSE’s continued listing
standard under Rule 802.01 of NYSE’s Listed Company Manual,
which requires acquisition companies to have an average aggregate
global market capitalization of at least $50,000,000 and an average
aggregate global market capitalization of $40,000,000 attributable
to publicly-held shares, in each case
over 30 consecutive trading days. SCVX had previously
announced, on March 1, 2022, that it would voluntarily delist
from NYSE and transfer its listing to NYSE American, and the
Company was approved for listing on NYSE American on March 3,
2022. However, on March 4, 2022, NYSE American informed the
Company that, upon further review of its application, the Company
did not meet certain initial listing requirements of NYSE
American.
As previously disclosed, on January 20, 2022, SCVX entered
into a non-binding letter of intent
for a business combination with a target company in the
Environmental, Social, and Governance (ESG) space (“Target Number
3”). On March 31, 2022, SCVX announced that the letter of
intent with Target Number 3 had been terminated.
The
Company’s Current Efforts at Completing an Initial Business
Combination
In April 2022, SCVX entered into a Non-Disclosure Agreement for the consideration of a
possible strategic transaction with a target company in the metal
machining and processing industry (“Company B”). In June 2022,
SCVX began formal negotiations with respect to a possible business
combination with Company B (the “Company B Transaction”) and on
June 12, 2022, SCVX and Company B agreed to initial terms of
the Company B Transaction. Since then, SCVX Counsel and Company B
have exchanged numerous drafts of definitive documents and have
extensively negotiated the transaction documents and the terms
thereof.
On June 13, SCVX, SCVX Counsel, Company B and counsel to
Company B (“Company B Counsel”) held a meeting by videoconference
to discuss the legal documentation with respect to the Company B
Transaction. Also on June 13, 2022, Company B Counsel sent
SCVX Counsel the initial drafts of the Business Combination
Agreement (the “BCA”) and other definitive transaction
documents.
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On June 17, 2022, Company B Counsel sent SCVX Counsel a
revised draft of the BCA. Also on June 17, 2022, SCVX
Counsel and Company B Counsel held a meeting to discuss the Company
B Transaction.
On June 20, 2022, SCVX, SCVX Counsel, Company B and Company B
Counsel held a meeting by videoconference to discuss the status of
the Company B Transaction.
On June 23, 2022 and June 24, 2022 SCVX Counsel, Company
B and Company B Counsel held meetings to discuss legal due
diligence.
On June 24, 2022, SCVX Counsel sent Company B Counsel a
revised draft of the BCA. Also on June 24, 2022, SCVX
Counsel and Company B Counsel held a meeting to discuss the Company
B Transaction.
On June 29, 2022, SCVX, SCVX Counsel, Company B and Company B
Counsel held a meeting by videoconference to discuss the status of
the Company B Transaction.
On June 30, 2022, Company B Counsel sent SCVX Counsel a
revised draft of the BCA.
On July 1, 2022, SCVX, SCVX Counsel, Company B and Company B
Counsel held a meeting by videoconference to discuss the status of
the Company B Transaction.
On July 5, 2022, SCVX Counsel sent Company B Counsel a revised
draft of the BCA. Also on July 5, 2022, SCVX, SCVX
Counsel, Company B and Company B Counsel held a meeting by
videoconference to discuss the status of the Company B
Transaction.
On July 7, 2022, Company B Counsel sent SCVX Counsel a revised
draft of the BCA. Also on July 7, 2022, SCVX, SCVX
Counsel, Company B and Company B Counsel held a meeting by
videoconference to discuss the status of the Company B
Transaction.
On July 11, 2022, SCVX Counsel and Company B Counsel held a
meeting to discuss the BCA and other transaction documents. Also on
July 11, 2022, SCVX, SCVX Counsel, Company B and Company B
Counsel held a meeting by videoconference to discuss the status of
the Company B Transaction.
Given SCVX’s advanced negotiations with Company B, SCVX hopes to be
in a position to announce a definitive transaction with Company B
prior to the Extraordinary General Meeting. However, no assurances
can be made that the parties will successfully negotiate and enter
into a definitive agreement, or that the proposed transaction will
be consummated on the terms or timeframe currently contemplated, or
at all. Any transaction would be subject to board and equityholder
approval of both companies, regulatory approvals, and other
customary conditions. If SCVX is unable to enter into definitive
transaction documents with Company B, SCVX may find it difficult to
identify another target company with which to consummate an initial
business combination given that SCVX maintains approximately
$38,000,000 in its trust account (exclusive of any redemptions that
may occur at the Extraordinary General Meeting) and that SCVX is
not presently listed on any national securities exchange and may
not be able to list its securities on any national securities
exchange following the consummation of its initial business
combination.
The
Board’s Reasons for the Extension Proposal
Our Articles and the First Extension Resolution provide that if our
shareholders approve an extension of our obligation to redeem all
of our public shares if we do not complete our initial business
combination before July 28, 2022, we will provide our public
shareholders with the opportunity to redeem all or a portion of
their ordinary shares upon such approval at a per-share price, payable in cash, equal to the
aggregate amount then on deposit in the Trust Account, including
interest earned, divided by the number of then outstanding public
shares. We believe that this provision of the Articles and the
First Extension Resolution was included to protect our shareholders
from having to sustain their investments for an unreasonably long
period if we failed to find a suitable business combination in the
timeframe contemplated by the Articles and the First Extension
Resolution.
Our Board believes current circumstances and negotiation warrants
providing those who believe they might execute a potential business
combination to be an attractive investment with an opportunity to
consider such a transaction, inasmuch as we are also affording
shareholders who wish to redeem their public shares the opportunity
to do so. Our Board has further determined that an extension period
of nine months is appropriate in order to provide for
sufficient time to consummate the contemplated acquisition, as our
Board believes that it could take
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more than six months between the signing and closing of a
business combination given current timelines of other business
combinations and taking into account the potential length of the
preparation and SEC review of the proxy statement/registration
statement to be filed in connection therewith. This Extension
Proposal is being sought in connection with a proposed business
combination regarding which we are currently in discussion. If you
do not elect to redeem your public shares, you will retain the
right to vote on any proposed initial business combination in the
future and the right to redeem your public shares in connection
with such initial business combination.
If the Extension Proposal is
not Approved
Our board will abandon the Extension if our shareholders do not
approve the Extension Proposal. If the Extension Proposal is not
approved and we do not consummate a business combination by
July 28, 2022, as contemplated by our IPO prospectus and in
accordance with our Articles and the First Extension Resolution, 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 (less taxes payable, and less up to
$100,000 of interest to pay liquidation 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); and (iii) as promptly as reasonably possible
following such redemption, subject to the approval of our remaining
shareholders and our Board, liquidate and dissolve, subject in the
case of (ii) and (iii), to its obligations under Cayman
Islands law to provide for claims of creditors and in all cases
subject to the other requirements of applicable law.
There will be no redemption rights or liquidating distributions
with respect to our warrants, which will expire worthless in the
event of our winding up. In the event of a liquidation, holders of
our founder shares, including our Sponsor and our directors, will
not receive any monies held in the Trust Account as a result of
their ownership of the founder shares.
If the Extension Proposal is
Approved
Upon approval of the Extension Proposal the Extension will be
implemented. We will remain a reporting company under the
Exchange Act, and our units.
If the Extension Proposal is approved and the Extension is
implemented, the removal of the Withdrawal Amount from the Trust
Account in connection with the Election will reduce the amount held
in the Trust Account following the Election. We cannot predict the
amount that will remain in the Trust Account if the Extension
Proposal is approved and the amount remaining in the Trust Account
may be only a small fraction of the approximately $38,037,700.26
that was in the Trust Account as of June 30, 2022. In such event,
we may need to obtain additional funds to complete an initial
business combination, and there can be no assurance that such funds
will be available on terms acceptable or at all.
If the Extension Proposal is approved but we do not complete a
business combination by the Extended Date, 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 (less taxes payable, and less up to $100,000 of interest
to pay liquidation 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);
and (iii) as promptly as reasonably possible following such
redemption, subject to the approval of our remaining shareholders
and our Board, liquidate and dissolve, subject in the case of
(ii) and (iii), to its obligations under Cayman Islands law to
provide for claims of creditors and in all cases subject to the
other requirements of applicable law. We cannot assure you that the
per share distribution from the Trust Account, if we liquidate,
will not be less than $10.00 due to unforeseen claims of creditors.
There will be no redemption rights or liquidating distributions
with respect to our warrants, which will expire worthless in the
event of our winding up. In the event of a liquidation, holders of
our founder shares, including our Sponsor and our directors, will
not receive any monies held in the Trust Account as a result of
their ownership of the founder shares.
21
Full
Text of Resolution
“RESOLVED, as a special resolution, that the extension of the date
by which the Company must either (a) consummate a merger,
share exchange, asset acquisition, share purchase, reorganization
or similar business combination with one or more businesses or
entities or (b) (i) cease all operations except for the
purpose of winding up; (ii) as promptly as reasonably possible
but not more than ten business days thereafter, redeem all of
the Company’s Class A ordinary shares included as part of the
units sold in the Company’s initial public offering that was
consummated on January 28, 2020; and (iii) as promptly as
reasonably possible following such redemption, subject to the
approval of the Company’s remaining members and the Company’s board
of directors, liquidate and dissolve, subject in the case of
(ii) and (iii), to its obligations under Cayman Islands law to
provide for claims of creditors and in all cases subject to the
other requirements of applicable law, from July 28, 2022 to
April 28, 2023 be confirmed, ratified and approved in all
respects.”
Vote
Required for Approval
The Extension Proposal must be approved as a special resolution
under the Cayman Islands Companies Act and the Articles, being the
affirmative vote of the holders of a two-thirds majority of the then issued and
outstanding ordinary shares who, being present and entitled to vote
at the Extraordinary General Meeting, vote at the Extraordinary
General Meeting. Abstentions and broker non-votes, while considered present for the purposes
of establishing a quorum, will not count as a vote cast at the
Extraordinary General Meeting.
Recommendation of the
Board
As herein, after careful consideration of all relevant factors, our
Board has determined that the Extension Proposal is in the best
interests of the Company and its shareholders. Our Board has
approved and declared advisable adoption of the Extension Proposal
and recommends that you vote “FOR” such proposal.
After careful consideration of all relevant factors, our Board
determined that the Extension Proposal is in the best interests of
the Company and its shareholders.
Our
Board unanimously recommends that our shareholders vote “FOR” the
approval of the Extension Proposal.
22
PROPOSAL 2 — THE
ADJOURNMENT PROPOSAL
Overview
The Adjournment Proposal, if adopted, will allow our Board to
adjourn the Extraordinary General Meeting to a later date or dates
to permit further solicitation of proxies. The Adjournment Proposal
is only expected to be presented to our shareholders in the event
that there are insufficient votes for, or otherwise in connection
with, the approval of the Extension Proposal. In no event will our
Board adjourn the Extraordinary General Meeting beyond
July 28, 2022.
Consequences if the
Adjournment Proposal is Not Approved
If the Adjournment Proposal is not approved by our shareholders,
our Board may not be able to adjourn the Extraordinary General
Meeting to a later date in the event that there are insufficient
votes for, or otherwise in connection with, the approval of the
Extension Proposal.
Full
Text of the Resolution
“RESOLVED, as an ordinary resolution, that the Extraordinary
General Meeting be adjourned in accordance with the amended and
restated memorandum and articles of association of the Company to a
later date as directed by the chairman of the Extraordinary General
Meeting to permit the further solicitation of proxies by the
Company.”
Vote
Required for approval
The Adjournment Proposal must be approved by the affirmative vote
of the holders of a majority of the then issued and outstanding
ordinary shares who, being present and entitled to vote at the
Extraordinary General Meeting, vote at the Extraordinary General
Meeting. Abstentions and broker non-votes, while considered present for the purposes
of establishing a quorum, will not count as a vote cast at the
Extraordinary General Meeting.
Recommendation of the
Board
If presented, our Board unanimously recommends that our
shareholders vote “FOR” the approval of the Adjournment
Proposal.
23
THE
EXTRAORDINARY GENERAL MEETING
Date, Time and
Place. The
Extraordinary General Meeting of our shareholders will be held at
9:00 a.m. Eastern Time on July 27, 2022 at the offices of
Willkie Farr & Gallagher LLP, located at 787 Seventh
Avenue, New York, New York 10019 (only to the extent
consistent with, or permitted by, applicable law and directives of
public health authorities). In the interest of public health, and
due to the impact of the coronavirus, we are also planning for the
meeting to be held virtually over the Internet, but the physical
location of the meeting will remain at the location specified above
for the purposes of our Amended and Restated Memorandum and
Articles of Association.
Voting Power; Record
Date. You
will be entitled to vote or direct votes to be cast at the
Extraordinary General Meeting, if you owned the ordinary shares at
the close of business on June 29, 2022, the record date for the
Extraordinary General Meeting. You will have one vote per proposal
for each ordinary share you owned at that time. The Company
warrants do not carry voting rights.
Votes Required. The
approval of the Extension Proposal requires a special resolution,
being the affirmative vote of the holders of at least a
two-thirds majority of the then issued
and outstanding ordinary shares who, being present and entitled to
vote at the Extraordinary General Meeting, vote at the
Extraordinary General Meeting, and the Adjournment Proposal
requires the affirmative vote of the holders of at least a majority
of the then issued and outstanding ordinary shares who, being
present and entitled to vote at the Extraordinary General Meeting,
vote at the Extraordinary General Meeting. Abstentions and broker
non-votes, while considered present
for the purposes of establishing a quorum, will not count as a vote
cast at the Extraordinary General Meeting.
On the record date of the Extraordinary General Meeting, there were
9,542,013 ordinary shares outstanding, of which 3,792,013 were
public shares and 5,750,000 were founder shares. The founder shares
carry voting rights in connection with the Extension Proposal and
the Adjournment Proposal, and we have been informed by our Sponsor
and directors that hold 5,750,000 founder shares in the aggregate,
that they intend to vote in favor of the Extension Proposal and the
Adjournment Proposal.
If you do not want the Extension Proposal to be approved, you must
vote “AGAINST” the proposal. If the Extension Proposal is approved
and the Extension is implemented, then the Withdrawal Amount will
be withdrawn from the Trust Account and paid pro rata to the
redeeming holders. You will still be entitled to make the Election
if you vote against, abstain or do not vote on the Extension
Proposal.
Proxies; Board
Solicitation. Your
proxy is being solicited by our Board on the proposal to approve
the Extension Proposal being presented to shareholders at the
Extraordinary General Meeting. We have engaged Morrow to assist in
the solicitation of proxies for the Extraordinary General Meeting.
No recommendation is being made as to whether you should elect to
redeem your shares. Proxies may be solicited in person or by
telephone. If you grant a proxy, you may still revoke your proxy
and vote your shares in person at the Extraordinary General Meeting
if you are a holder of record of the ordinary shares. You may
contact Morrow at:
Morrow Sodali LLC
333 Ludlow Street, 5th Floor, South
Tower
Stamford, Connecticut 06902
Individuals can call toll-free at:
(800) 662-5200
Banks and brokers can call collect at: (203) 658-9400
E-mail:
SCVX.info@investor.morrowsodali.com
Required Vote
The approval of the Extension Proposal requires a special
resolution, being the affirmative vote of the holders of at least a
two-thirds majority of the then issued
and outstanding ordinary shares who, being present and entitled to
vote at the Extraordinary General Meeting, vote at the
Extraordinary General Meeting, and the Adjournment Proposal
requires the affirmative vote of the holders of at least a majority
of the then issued and outstanding ordinary shares who, being
present and entitled to vote at the Extraordinary General Meeting,
vote at the Extraordinary General Meeting. Abstentions and broker
non-votes, while considered present
for the purposes of establishing a quorum, will not count as a vote
cast at the Extraordinary General Meeting.
24
If the Extension Proposal is not approved and we do not consummate
a business combination by July 28, 2022, as contemplated by
our IPO prospectus and in accordance with our Articles and the
First Extension Resolution, 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 (less taxes payable, and less up to $100,000 of interest
to pay liquidation 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);
and (iii) as promptly as reasonably possible following such
redemption, subject to the approval of our remaining shareholders
and our Board, liquidate and dissolve, subject in the case of
(ii) and (iii), to its obligations under Cayman Islands law to
provide for claims of creditors and in all cases subject to the
other requirements of applicable law. We cannot assure you that the
per share distribution from the Trust Account, if we liquidate,
will not be less than $10.00 due to unforeseen claims of creditors.
There will be no redemption rights or liquidating distributions
with respect to our warrants, which will expire worthless in the
event of our winding up. In the event of a liquidation, holders of
our founder shares, including our Sponsor and our directors, will
not receive any monies held in the Trust Account as a result of
their ownership of the founder shares.
Interests of our Sponsor,
Directors and Officers
When you consider the recommendation of our Board, you should keep
in mind that our Sponsor, directors and officers will benefit from
the proposals and the consummation of a business combination, and
may be incentivized to complete an acquisition of a less favorable
target company or on terms less favorable to shareholders rather
than liquidate. Additionally, our Sponsor, directors and officers
may have interests in the proposals that may be different from, or
in addition to, or which may conflict with your interests as a
shareholder. These interests include, among other things:
• If
we do not consummate our initial business combination transaction
by July 28, 2022 or by the
Extended Date if the Extension Proposal is approved by the
requisite number of votes, we would (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 (less taxes payable, and less up to $100,000 of interest
to pay liquidation 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);
and (iii) as promptly as reasonably possible following such
redemption, subject to the approval of our remaining shareholders
and our Board, liquidate and dissolve, subject in the case of
(ii) and (iii), to its obligations under Cayman Islands law to
provide for claims of creditors and in all cases subject to the
other requirements of applicable law. In such event, the founder
shares, all of which are owned by our Sponsor and directors, would
be worthless because following the redemption of the public shares,
we would likely have few, if any, net assets and because our
holders of our founder shares have agreed to waive their rights to
liquidating distributions from the Trust Account with respect to
the founder shares if we fail to complete a business combination
within the required period.
• In
addition, simultaneously with the closing of our IPO, we
consummated the sale of 6,600,000 private placement warrants at a
price of $1.00 per warrant in a private placement to our Sponsor.
The warrants are each exercisable for one ordinary share at $11.50
per share. If we do not consummate our initial business combination
by July 28, 2022, or by the
Extended Date if the Extension Proposal is approved by the
requisite number of votes, then a portion of the proceeds from the
sale of the private placement warrants will be part of the
liquidating distribution to the public shareholders and the
warrants held by our Sponsor will be worthless.
25
• Our
directors and executive officers may continue to be directors and
officers of any acquired business after the consummation of an
initial business combination. As such, in the future they will
receive any cash fees, stock options or stock awards that a
post-business combination Board
determines to pay to its directors and officers if they continue as
directors and officers following such initial business
combination.
• In
order to protect the amounts held in the Trust Account, 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 registered
public accounting firm) for services rendered or products sold to
us, or a prospective target business with which we have discussed
entering into a transaction agreement, reduce the amount of funds
in the trust account to below (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 net of the interest which may be
withdrawn to pay taxes, except as to any claims by a third party
who executed a waiver of any and all rights to seek access to the
trust account and except as to any claims under our indemnity of
the underwriters of the IPO against certain liabilities, including
liabilities under the Securities Act.
• Following
consummation of our initial business combination, our Sponsor, our
officers and directors and their respective affiliates would be
entitled to reimbursement for any out-of-pocket expenses related to identifying,
investigating, negotiating and completing an initial business
combination, and repayment of any other loans, if any, and on such
terms as to be determined by us from time to time, made by our
Sponsor or an affiliate of our sponsor or certain of our officers
and directors to finance transaction costs in connection with an
intended initial business combination. However, if we fail to
consummate a business combination within the applicable period, our
Sponsor and our officers and directors and their respective
affiliates will not have any claim against the Trust Account for
reimbursement, and we may not otherwise be able to reimburse
them.
• Our
Sponsor, directors and officers have agreed not to redeem any of
their shares in connection with a shareholder vote to approve a
business combination;
• Our
Sponsor paid an aggregate of $25,000 for 5,750,000 Class B
ordinary shares, all of which are currently owned by the Sponsor,
directors and officers. As a result, our Sponsor, directors and
officers will have rates of return on their respective investments
which differ from, and may be higher than, the rate of return of
the Company’s shareholders who purchased ordinary shares at various
other prices, including ordinary shares included in SCVX units that
were sold at $10.00 per unit in our initial public offering, and
which may be positive while shareholders holding shares in the
post-business combination company
experience a negative rate of return on their investment.
Additionally, the Class B shares will expire worthless if an
initial business combination is not consummated by July 28, 2022 (unless such date is extended
pursuant to the Extension Proposal);
• Our
Sponsor, directors and officers have agreed to waive their rights
to liquidating distributions from the Trust Account with respect to
any ordinary shares (other than public shares) held by them if the
Company fails to complete an initial business combination by
July 28, 2022 (unless such date
is extended pursuant to the Extension Proposal); and
• In
February 2022, our Sponsor made a loan of $500,000 to the
Company, accruing interest at a rate of 0.59% per annum (the
“Sponsor Promissory Note”), which is repayable on the earlier of
(i) the closing of a business combination and
(ii) July 28, 2022, which is
the date by which the Company must either consummate a business
combination or cease all operations except for the purpose of
winding up. We intend to amend this note to extend the maturity
prior to its expiration. Additionally, as discussed above, our
Sponsor paid $6,600,000 for 6,600,000 private placement warrants
and $25,000 for 5,750,000 Class B ordinary shares, of which it
holds 4,657,500 today. The warrants are each exercisable for one
ordinary share at $11.50 per share. If the Company does not
consummate a business combination, the Class B ordinary shares
and private placement warrants will expire worthless. The aggregate
dollar
26
amount that the Sponsor and its affiliates have at risk that
depends on the completion of a business combination is $7,125,000
paid for the SCVX Class B ordinary shares, the private
placement warrants and the Sponsor Promissory Note. Similarly, our
directors and officers hold 1,092,500 Class B ordinary shares.
Given that the Class B shares were paid for by the Sponsor,
and that there is currently no public market for these shares,
their current value cannot be quantified. However, upon the
consummation of a business combination, the Class B shares
would convert automatically on a one-for-one basis into
shares of common stock in the surviving entity, subject to any
contractual forfeiture of such shares. If the Company fails to
consummate a business combination, the Class B shares will be
worthless. Additionally, certain directors and officers have made
capital contributions and loans to our Sponsor totaling $543,586,
all of which is at risk and depends upon the completion of a
business combination. As a result of Sponsor’s, directors’ and
officer’s interest in the SCVX Class B ordinary shares and our
Sponsor’s interest in the private placement warrants, our Sponsor
and its affiliates, directors and officers have an incentive to
approve the proposals and complete a business combination and may
have a conflict of interest in seeking a transaction, including
without limitation, in determining whether a particular business is
an appropriate business with which to effect a business
combination.
Redemption Rights
If the Extension Proposal is approved, and the Extension is
implemented, each of our public shareholders may submit an election
that such public shareholder elects to redeem all or a portion of
his 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, divided by
the number of then outstanding public shares. You will also be able
to redeem your public shares in connection with any proposed
initial business combination, or if we have not consummated a
business combination by the Extended Date.
TO DEMAND REDEMPTION, PRIOR TO 5:00 P.M. EASTERN TIME ON JULY 25,
2022 (TWO BUSINESS DAYS BEFORE THE EXTRAORDINARY GENERAL MEETING),
YOU SHOULD ELECT EITHER TO PHYSICALLY TENDER YOUR SHARE
CERTIFICATES TO CONTINENTAL STOCK TRANSFER & TRUST COMPANY
OR TO DELIVER YOUR SHARES TO THE TRANSFER AGENT ELECTRONICALLY
USING DTC’S DWAC (DEPOSIT/WITHDRAWAL AT CUSTODIAN), AS DESCRIBED
HEREIN. YOU SHOULD ENSURE THAT YOUR BANK OR BROKER COMPLIES
WITH THE REQUIREMENTS IDENTIFIED ELSEWHERE HEREIN.
In order to tender your ordinary shares for redemption, you must
elect either to physically tender your share certificates to
Continental Stock Transfer & Trust Company, our transfer
agent, at Continental Stock Transfer & Trust Company,
1 State Street 30th Floor,
New York, New York 10004, Attn: Mark Zimkind,
mzimkind@continentalstock.com, or to deliver your shares to the
transfer agent electronically using DTC’s DWAC (Deposit/Withdrawal
At Custodian) system, which election would likely be determined
based on the manner in which you hold your shares. You should
tender your ordinary shares in the manner described above prior to
5:00 p.m. Eastern Time on July 25, 2022 (two business
days before the Extraordinary General Meeting).
Through the DWAC system, this electronic delivery process can be
accomplished by the shareholder, whether or not it is a record
holder or its shares are held in “street name,” by contacting the
transfer agent or its broker and requesting delivery of its shares
through the DWAC system. Delivering shares physically may take
significantly longer. In order to obtain a physical share
certificate, a shareholder’s broker and/or clearing broker, DTC,
and our transfer agent will need to act together to facilitate this
request. There is a nominal cost associated with the
above-referenced tendering process and
the act of certificating the shares or delivering them through the
DWAC system. The transfer agent will typically charge the tendering
broker $80 and the broker would determine whether or not to pass
this cost on to the redeeming holder. It is our understanding that
shareholders should generally allot at least two weeks to
obtain physical certificates from the transfer agent. We do not
have any control over this process or over the brokers or DTC, and
it may take longer than two weeks to obtain a physical share
certificate. Such shareholders will have less time to make their
investment decision than those shareholders that deliver their
shares through the DWAC system. Shareholders who request physical
share certificates and wish to redeem may be unable to meet the
deadline for tendering their shares before exercising their
redemption rights and thus will be unable to redeem their
shares.
27
Certificates that have not been tendered in accordance with these
procedures prior to the vote on the Extension Proposal at the
Extraordinary General Meeting will not be redeemed for cash held in
the Trust Account on the redemption date. In the event that a
public shareholder tenders its shares and decides prior to the vote
at the Extraordinary General Meeting that it does not want to
redeem its shares, the shareholder may withdraw the tender. If you
delivered your ordinary shares for redemption to our transfer agent
and decide prior to the vote at the Extraordinary General Meeting
not to redeem your shares, you may request that our transfer agent
return the shares (physically or electronically). You may make such
request by contacting our transfer agent at the address listed
above. In the event that a public shareholder tenders shares and
the Extension Proposal is not approved, these shares will not be
redeemed and the physical certificates representing these shares
will be returned to the shareholder promptly following the
determination that the Extension Proposal will not be approved. The
transfer agent will hold the certificates of public shareholders
that make the Election until such shares are redeemed for cash or
returned to such shareholders.
If properly demanded, we will redeem each public share for a
per-share price, payable in cash,
equal to the aggregate amount then on deposit in the Trust Account,
including interest earned, divided by the number of then
outstanding public shares. Based upon the amount in the Trust
Account as of June 30, 2022, which was $38,037,700.26, we
anticipate that the per-share price at
which public shares will be redeemed from cash held in the Trust
Account will be approximately $10.03 at the time of the
Extraordinary General Meeting. We cannot assure shareholders that
they will be able to sell their shares in the open market, even if
the market price per share is higher than the redemption price
stated above, as there may not be sufficient liquidity in our
securities when such shareholders wish to sell their shares.
If you exercise your redemption rights, you will be exchanging your
ordinary shares for cash and will no longer own the shares. You
will be entitled to receive cash for these shares only if you
properly demand redemption and tender your share
certificate(s) to our transfer agent prior to the vote on the
Extension Proposal at the Extraordinary General Meeting. We
anticipate that a public shareholder who tenders ordinary shares
for redemption in connection with the vote to approve the Extension
Proposal would receive payment of the redemption price for such
shares soon after the Extraordinary General Meeting.
Potential Application of
the Investment Company Act
As previously indicated, the Company completed its initial public
offering in January 2020 and has operated as
a blank check company searching for a target
business with which to consummate an initial business combination
since such time (or approximately 30 months). On
March 30, 2022, the SEC issued the SPAC Rule Proposals, which
would provide a safe harbor for such companies from the definition
of “investment company” under Section 3(a)(1)(A) of the
Investment Company Act, provided that they satisfy certain
conditions that limit a company’s duration, asset composition,
business purpose and activities. The duration component of the
proposed safe harbor rule would require the company to file a
Current Report on Form 8-K with the SEC announcing that it has
entered into an agreement with the target company (or companies) to
engage in an initial business combination no later than
18 months after the effective date of the company’s
registration statement for its initial public offering. The company
would then be required to complete its initial business combination
no later than 24 months after the effective date of its
registration statement for its initial public offering. Because we
have been searching for a target business with which to consummate
a business combination since January 2020, we would fall
outside the scope of the proposed safe harbor of the SPAC Rule
Proposals.
The SEC has indicated that it believes that there are serious
questions concerning the applicability of the Investment
Company Act to special purpose acquisition companies,
including a company like ours, that does not complete its initial
business combination within the proposed time frame set forth in
the SPAC Rule Proposals. As a result, it is possible that a claim
could be made that we have been operating as
an unregistered investment company. If the Company
was deemed to be an investment company for purposes of
the Investment Company Act and found to have been
operating as an unregistered investment company, it
could cause the Company to liquidate. If we are forced to
liquidate, investors in the Company would not be able to
participate in any benefits of owning stock in an operating
business, including the potential appreciation of our stock
following such a transaction and our warrants would expire
worthless.
28
UNITED STATES FEDERAL INCOME
TAX CONSIDERATIONS FOR SHAREHOLDERS EXERCISING REDEMPTION
RIGHTS
The following discussion is a summary of the U.S. federal
income tax considerations generally applicable to Redeeming
U.S. Holders (as defined below) in connection with an
Election. This discussion is limited to certain U.S. federal
income tax considerations to Redeeming U.S. Holders that hold
our Class A ordinary shares as a capital asset under the
U.S. Internal Revenue Code of 1986, as amended (the “Code”).
This discussion is a summary only and does not consider all aspects
of U.S. federal income taxation that may be relevant to a
Redeeming U.S. Holder in connection with an Election,
including:
• our
Sponsor, founders, officers or directors;
• financial
institutions or financial services entities;
• broker-dealers;
• taxpayers
that are subject to the mark-to-market
accounting rules;
• tax-exempt
entities;
• governments
or agencies or instrumentalities thereof;
• insurance
companies;
• regulated
investment companies;
• real
estate investment trusts;
• expatriates
or former long-term residents of the
United States;
• persons
that actually or constructively own five percent or more of our
voting shares;
• persons
that acquired our securities pursuant to an exercise of employee
share options, in connection with employee share incentive plans or
otherwise as compensation or in connection with services;
• persons
that hold our securities as part of a straddle, constructive sale,
hedging, conversion or other integrated or similar transaction;
or
• Redeeming
U.S. Holders (as defined below) whose functional currency is
not the U.S. dollar.
Moreover, the discussion below is based upon the provisions of the
Code, the Treasury regulations promulgated thereunder and
administrative and judicial interpretations thereof, all as of the
date hereof, and such provisions may be repealed, revoked, modified
or subject to differing interpretations, possibly on a retroactive
basis, so as to result in U.S. federal income tax consequences
different from those discussed below. Furthermore, this discussion
does not address any aspect of U.S. federal non-income tax laws, such as gift, estate or Medicare
contribution tax laws, or state, local or non-U.S. tax laws. We have not sought, and will
not seek, a ruling from the U.S. Internal Revenue Service
(“IRS”) as to any U.S. federal income tax consequence
described herein. The IRS may disagree with the discussion herein,
and its determination may be upheld by a court. Moreover, there can
be no assurance that future legislation, regulations,
administrative rulings or court decisions will not adversely affect
the accuracy of the statements in this discussion.
This discussion does not consider the tax treatment of partnerships
or other pass-through entities or
persons who hold our securities through such entities. If a
partnership (or other entity or arrangement classified as a
partnership for U.S. federal income tax purposes) is the
beneficial owner of our securities, the U.S. federal income
tax treatment of a partner in the partnership generally will depend
on the status of the partner and the activities of the partner and
the partnership. If you are a partner of a partnership holding our
securities, we urge you to consult your own tax advisor.
As used herein, a “Redeeming U.S. Holder” is a beneficial
owner of our Class A ordinary shares that holds its
Class A ordinary shares as a capital asset for
U.S. federal income tax purposes and elects to have such
Class A ordinary shares redeemed for cash pursuant to the
exercise of redemption rights through an Election and is, for
29
U.S. federal income tax purposes: (i) an individual
citizen or resident of the United States, (ii) a
corporation (or other entity treated as a corporation for
U.S. federal income tax purposes) that is created or organized
(or treated as created or organized) in or under the laws of the
United States, any state thereof or the District of Columbia,
(iii) an estate the income of which is subject to
U.S. federal income taxation regardless of its source or
(iv) a trust if (A) a court within the United States
is able to exercise primary supervision over the administration of
the trust and one or more United States persons have the
authority to control all substantial decisions of the trust, or
(B) it has in effect a valid election to be treated as a
United States person.
THIS
DISCUSSION IS ONLY A SUMMARY OF U.S. FEDERAL INCOME TAX
CONSIDERATIONS ASSOCIATED WITH AN ELECTION. EACH REDEEMING
U.S. HOLDER IS URGED TO CONSULT ITS TAX ADVISORS WITH RESPECT
TO THE PARTICULAR TAX CONSEQUENCES TO SUCH REDEEMING
U.S. HOLDER OF THE EXERCISE OF REDEMPTION RIGHTS THROUGH AN
ELECTION, INCLUDING THE APPLICABILITY AND EFFECT OF ANY STATE,
LOCAL, AND NON-U.S. TAX
LAWS.
Redemption as Sale of
Class A Ordinary Shares or Corporate Distribution
Subject to the passive foreign investment company (“PFIC”) rules
discussed below, the U.S. federal income tax consequences of a
redemption pursuant to an Election to a Redeeming U.S. Holder
will depend, in part, on whether such redemption qualifies as a
sale of the redeemed Class A ordinary shares under
Section 302 of the Code. If the redemption by us qualifies as
a sale of Class A ordinary shares, the Redeeming
U.S. Holder will be treated as described under “— Sale of
Class A Ordinary Shares” below. If the redemption by us does
not qualify as a sale of Class A ordinary shares, the
U.S. Holder will be treated as receiving a corporate
distribution with the tax consequences described below under
“— Corporate Distribution.” Whether a redemption by us
qualifies for sale treatment will depend largely on the total
number of our shares treated as held by the Redeeming
U.S. Holder (including any shares constructively owned by the
Redeeming U.S. Holder described in the following paragraph)
relative to all of our shares outstanding both before and after
such redemption. The redemption by us of Class A ordinary
shares generally will be treated as a sale of the Class A
ordinary shares (rather than as a corporate distribution) if such
redemption (i) is “substantially disproportionate” with
respect to the Redeeming U.S. Holder, (ii) results in a
“complete termination” of the Redeeming U.S. Holder’s interest
in us or (iii) is “not essentially equivalent to a dividend”
with respect to the Redeeming U.S. Holder. These tests are
explained more fully below.
In determining whether any of the foregoing tests are satisfied, a
Redeeming U.S. Holder takes into account not only our shares
actually owned by the Redeeming U.S. Holder, but also our
shares that are constructively owned by it. A Redeeming
U.S. Holder may constructively own, in addition to shares
owned directly, shares owned by certain related individuals and
entities in which the Redeeming U.S. Holder has an interest or
that have an interest in such Redeeming U.S. Holder, as well
as any shares the Redeeming U.S. Holder has a right to acquire
by exercise of an option, which would generally include
Class A ordinary shares which could be acquired pursuant to
the exercise of our warrants. In order to meet the substantially
disproportionate test, the percentage of our outstanding voting
shares actually and constructively owned by the Redeeming
U.S. Holder immediately following the redemption of Redeeming
Class A ordinary shares must, among other requirements, be
less than 80 percent of the percentage of our outstanding voting
shares actually and constructively owned by the Redeeming
U.S. Holder immediately before the redemption. Prior to our
initial business combination, the Class A ordinary shares may
not be treated as voting stock for this purpose and, consequently,
this substantially disproportionate test may not be applicable.
There will be a complete termination of a Redeeming
U.S. Holder’s interest if either (i) all of our shares
actually and constructively owned by the Redeeming U.S. Holder
are redeemed or (ii) all of our shares actually owned by the
Redeeming U.S. Holder are redeemed and the Redeeming
U.S. Holder is eligible to waive, and effectively waives in
accordance with specific rules, the attribution of shares owned by
certain family members and the Redeeming U.S. Holder does not
constructively own any other shares of ours. The redemption of the
Class A ordinary shares will not be essentially equivalent to
a dividend with respect to a Redeeming U.S. Holder if it
results in a “meaningful reduction” of the Redeeming
U.S. Holder’s proportionate interest in us. Whether the
redemption will result in a meaningful reduction in a Redeeming
U.S. Holder’s proportionate interest in us will depend on the
particular facts and circumstances. However, the IRS has indicated
in a published ruling that even a small reduction in the
proportionate interest of a small minority shareholder in a
publicly held corporation who exercises no control over corporate
affairs may constitute such a “meaningful reduction.” A Redeeming
U.S. Holder should consult with its own tax advisors as to the
tax consequences of a redemption.
30
If none of the foregoing tests are satisfied, then the redemption
will be treated as a corporate distribution and the tax effects
will be as described under “— Corporate Distribution” below.
After the application of those rules, any remaining tax basis of
the U.S. Holder in the redeemed Class A ordinary shares
will be added to the U.S. Holder’s adjusted tax basis in its
remaining shares, or, if it has none, to the Redeeming
U.S. Holder’s adjusted tax basis in its warrants or possibly
in other shares constructively owned by it.
Sale
of Class A Ordinary Shares
Subject to the PFIC rules discussed below, a U.S. Holder
generally will recognize capital gain or loss on such sale of our
Class A ordinary shares. Any such capital gain or loss
generally will be long-term capital
gain or loss if the Redeeming U.S. Holder’s holding period for
such Class A ordinary shares exceeds one year.
The amount of gain or loss recognized on such sale generally will
be equal to the difference between (i) the sum of the amount
of cash received in the sale and (ii) the Redeeming
U.S. Holder’s adjusted tax basis in its Class A ordinary
shares so sold. A Redeeming U.S. Holder’s adjusted tax basis
in its Class A ordinary shares generally will equal the
Redeeming U.S. Holder’s acquisition cost for its Class A
ordinary shares reduced by any prior distributions treated as a
return of capital. Long-term capital
gain realized by a non-corporate
Redeeming U.S. Holder is currently eligible to be taxed at
reduced rates. The deduction of capital losses is subject to
certain limitations.
Corporate
Distribution
Subject to the PFIC rules discussed below, a Redeeming
U.S. Holder generally will be required to include in gross
income as dividends the amount of any such corporate distribution
to the extent paid out of our current or accumulated earnings and
profits (as determined under U.S. federal income tax
principles). Such dividends paid by us will be taxable to a
corporate Redeeming U.S. Holder at regular rates and will not
be eligible for the dividends-received
deduction generally allowed to domestic corporations in respect of
dividends received from other domestic corporations. Distributions
in excess of such earnings and profits generally will be applied
against and reduce the Redeeming U.S. Holder’s basis in its
Class A ordinary shares (but not below zero) and, to the
extent in excess of such basis, will be treated as gain from the
sale or exchange of such Class A ordinary shares (see
“— Sale of Class A Ordinary Shares” above).
With respect to non-corporate
Redeeming U.S. Holders, under tax laws currently in effect,
dividends generally will be taxed at the lower applicable
long-term capital gains rate (see
“— Sale of Class A Ordinary Shares” above) only if our
Class A ordinary shares are readily tradable on an established
securities market in the United States and certain other
requirements are met. Redeeming U.S. Holders should consult
their tax advisors regarding the availability of such lower rate
for any dividends paid with respect to our Class A ordinary
shares.
Passive Foreign Investment
Company Rules
A foreign (i.e., non-U.S.) corporation
will be classified as a PFIC for U.S. federal income tax
purposes if either (i) at least 75% of its gross income in a
taxable year, including its pro rata share of the gross income of
any corporation in which it is considered to own at least 25% of
the shares by value, is passive income or (ii) at least 50% of
its assets in a taxable year (ordinarily determined based on fair
market value and averaged quarterly over the year), including its
pro rata share of the assets of any corporation in which it is
considered to own at least 25% of the shares by value, are held for
the production of, or produce, passive income. Passive income
generally includes dividends, interest, rents and royalties (other
than rents or royalties derived from the active conduct of a trade
or business) and gains from the disposition of passive assets. For
purposes of these rules, interest income earned by us would be
considered to be passive income and cash held by us would be
considered to be a passive asset.
Because we are a blank check company with no current active
business, based upon the composition of our income and assets, and
upon a review of our financial statements, we believe that it is
likely we were a PFIC for our initial taxable year ended
December 31, 2019, our taxable year ended on December 31,
2020, and our taxable year ended December 31, 2021, and will
likely be considered a PFIC for our current taxable year.
31
Accordingly, if a Redeeming U.S. Holder does not make in
respect of our Class A ordinary shares (i) a timely
qualified electing fund (“QEF”) election for our first taxable year
as a PFIC in which the Redeeming U.S. Holder held (or was
deemed to hold) Class A ordinary shares or (ii) a timely
“mark to market” election, in each case, as described below, such
Redeeming U.S. Holder generally will be subject to special
rules with respect to:
• any
gain recognized by the Redeeming U.S. Holder on the sale of
its Class A ordinary shares, which would include a redemption
pursuant to an Election, if such redemption is treated as a sale
under the rules discussed above under the heading “Redemption as
Sale of Class A Ordinary Shares or Corporate Distribution”;
and
• any
“excess distribution” made to the Redeeming U.S. Holder
(generally, any distributions to such Redeeming U.S. Holder
during a taxable year of the Redeeming U.S. Holder that are
greater than 125% of the average annual distributions received by
such Redeeming U.S. Holder in respect of the Class A
ordinary shares during the three preceding taxable years of
such Redeeming U.S. Holder or, if shorter, such Redeeming
U.S. Holder’s holding period for the Class A ordinary
shares), which may include a redemption pursuant to an Election to
the extent such redemption is treated as a corporate distribution
under the rules discussed above under the heading “Redemption as
Sale of Class A Ordinary Shares or Corporate
Distribution.”
Under these special rules:
• the
Redeeming U.S. Holder’s gain or excess distribution will be
allocated ratably over the Redeeming U.S. Holder’s holding
period for the Class A ordinary shares;
• the
amount allocated to the Redeeming U.S. Holder’s taxable year
in which the Redeeming U.S. Holder recognized the gain or
received the excess distribution, or to the period in the Redeeming
U.S. Holder’s holding period before the first day of our
first taxable year in which we are a PFIC, will be taxed as
ordinary income;
• the
amount allocated to other taxable years (or portions thereof)
of the Redeeming U.S. Holder and included in its holding
period will be taxed at the highest tax rate in effect for that
year and applicable to the Redeeming U.S. Holder; and
• an
additional tax equal to the interest charge generally applicable to
underpayments of tax will be imposed on the Redeeming
U.S. Holder with respect to the tax attributable to each such
other taxable year of the Redeeming U.S. Holder.
A Redeeming U.S. Holder that owns (or is deemed to own) shares
in a PFIC during any taxable year of the Redeeming
U.S. Holder, may have to file an IRS Form 8621 (whether
or not a QEF or market-to-market
election is made) and such other information as may be required by
the U.S. Treasury Department. Failure to do so, if required,
will extend the statute of limitations until such required
information is furnished to the IRS.
The application of the PFIC rules is extremely complex.
Shareholders considering participating in the redemption should
consult with their tax advisors concerning the application of the
PFIC rules in their particular circumstances.
QEF Election
A Redeeming U.S. Holder may avoid the PFIC rules described
above in respect to our Class A ordinary shares by making a
timely election (if eligible to do so) to treat us as a
QEF. If we are treated as a QEF with respect to a Redeeming
U.S. Holder, such Redeeming U.S. Holder must include in
gross income on a current basis (in the taxable year of such
Redeeming U.S. Holder in which or with which our taxable year
ends) its pro rata share of our net capital gains (as
long-term capital gain) and our
ordinary earnings (as ordinary income), in each case, whether or
not distributed. A Redeeming U.S. Holder generally may make a
separate election to defer the payment of taxes on undistributed
income inclusions under these QEF rules, but if deferred, any such
taxes will be subject to an interest charge.
32
If a Redeeming U.S. Holder has made a QEF election with
respect to our Class A ordinary shares for our first taxable
year as a PFIC in which the Redeeming U.S. Holder holds (or is
deemed to hold) such shares, (i) any gain recognized as a
result of a redemption pursuant to an Election (if such redemption
is treated as a sale under the rules discussed above under the
heading “Redemption as Sale of Class A Ordinary Shares or
Corporate Distribution”) generally will be taxable as capital gain
and no additional tax will be imposed under the PFIC rules, and
(ii) to the extent such redemption is treated as a corporate
distribution under the rules discussed above under the heading
“Redemption as Sale of Class A Ordinary Shares or Corporate
Distribution,” any distribution of ordinary earnings that were
previously included in income generally should not be taxable as a
dividend to such Redeeming U.S. Holder. The tax basis of a
Redeeming U.S. Holder’s shares in a QEF will be increased by
amounts that are included in income and decreased by amounts
distributed but not taxed as dividends under the above rules.
The QEF election is made on a shareholder-by-shareholder basis and, once made, can be
revoked only with the consent of the IRS. A Redeeming
U.S. Holder generally makes a QEF election by attaching a
completed IRS Form 8621 (Return by a Shareholder of a Passive
Foreign Investment Company or Qualified Electing Fund), including
the information provided in a “PFIC Annual Information Statement”,
to a timely filed U.S. federal income tax return for the tax
year to which the election relates. Retroactive QEF elections
generally may be made only by filing a protective statement with
such return and if certain other conditions are met or with the
consent of the IRS. Redeeming U.S. Holders should consult
their tax advisors regarding the availability and tax consequences
of a retroactive QEF election under their particular
circumstances.
If a Redeeming U.S. Holder makes a QEF election after our
first taxable year as a PFIC in which the Redeeming
U.S. Holder held (or was deemed to hold) Class A ordinary
shares, the adverse PFIC tax consequences (with adjustments to take
into account any current income inclusions resulting from the QEF
election) will continue to apply with respect to such Class A
ordinary shares unless the Redeeming U.S. Holder makes a
purging election under the PFIC rules. Under the purging election,
the Redeeming U.S. Holder will be deemed to have sold such
Class A ordinary shares at their fair market value and any
gain recognized on such deemed sale will be treated as an excess
distribution, taxed under the PFIC rules described above. As a
result of the purging election, the Redeeming U.S. Holder will
have a new basis and holding period in such Class A ordinary
shares for purposes of the PFIC rules.
In order to comply with the requirements of a QEF election, a
Redeeming U.S. Holder must receive a “PFIC Annual Information
Statement” from us. Upon written request, we will endeavor to
provide to a U.S. Holder such information as the IRS may
require, including a “PFIC Annual Information Statement”, in order
to enable the U.S. Holder to make and maintain a QEF Election.
There is no assurance, however, that we will timely provide such
required information.
33
BENEFICIAL OWNERSHIP OF
SECURITIES
The following table sets forth information regarding the beneficial
ownership of the ordinary shares as of June 29, 2022 by:
• each
person known by us to be the beneficial owner of more than 5% of
our outstanding ordinary shares;
• each
of our executive officers and directors; and
• all
our executive officers and directors as a group.
As of the record date, there were a total of 9,542,013 ordinary
shares outstanding. Unless otherwise indicated, we believe that all
persons named in the table have sole voting and investment power
with respect to all ordinary shares beneficially owned by them.
Name and Address of Beneficial Owner(1)(2)
|
|
Amount of
Class A Shares
Beneficially
Owned
|
|
Percent of
Class A
|
|
Amount of
Class B Shares
Beneficially
Owned
|
|
Percent of
Class B
|
|
Percent of
Ordinary
Shares
|
SCVX USA LLC(3)
|
|
—
|
|
—
|
|
|
4,657,500
|
|
81.0
|
%
|
|
48.8
|
%
|
Michael Doniger
|
|
—
|
|
—
|
|
|
575,000
|
|
10.0
|
%
|
|
6.0
|
%
|
Hank Thomas
|
|
—
|
|
—
|
|
|
287,500
|
|
5.0
|
%
|
|
3.0
|
%
|
Chris Ahern
|
|
—
|
|
—
|
|
|
86,250
|
|
1.5
|
%
|
|
*
|
|
Sounil Yu
|
|
—
|
|
—
|
|
|
28,750
|
|
*
|
|
|
*
|
|
Jeff Lunglhofer
|
|
—
|
|
—
|
|
|
28,750
|
|
*
|
|
|
*
|
|
Daniel Coats
|
|
—
|
|
—
|
|
|
57,500
|
|
1.0
|
%
|
|
*
|
|
Vivian Schneck-Last
|
|
—
|
|
—
|
|
|
28,750
|
|
*
|
|
|
*
|
|
All directors and officers as a group (8 individuals)
|
|
—
|
|
—
|
|
|
5,750,000
|
|
100
|
%
|
|
60.3
|
%
|
Hudson Bay Capital Management LP(4)
|
|
2,371,149
|
|
62.5
|
%
|
|
—
|
|
—
|
|
|
24.8
|
%
|
Fir Tree Capital Management LP(5)
|
|
328,320
|
|
8.7
|
%
|
|
—
|
|
—
|
|
|
3.4
|
%
|
34
SUBMISSION OF SHAREHOLDER
PROPOSALS FOR THE 2022 ANNUAL MEETING
We anticipate that the 2022 annual general meeting will be held no
later than December 31, 2022. Any shareholder seeking to bring
a proposal before the annual general meeting or to nominate a
candidate for election to the Board must submit such proposal or
nomination in writing and comply with the requirements of
Rule 14a-8 of the
Exchange Act and our Articles. Such proposals must have been
received by us at our offices at 1220 L St NW,
Suite 100-397, Washington, DC
20005 a reasonable time before we begin to print and send our proxy
materials for our 2022 annual general meeting, which deadline will
be disclosed prior to such in one of our SEC filings.
If the Extension Proposal is not approved, there will be no annual
general meeting in 2022.
HOUSEHOLDING
INFORMATION
Unless we have received contrary instructions, we may send a single
copy of this Proxy Statement to any household at which two or more
shareholders reside if we believe the shareholders are members of
the same family. This process, known as “householding,” reduces the
volume of duplicate information received at any one household and
helps to reduce our expenses. However, if shareholders prefer to
receive multiple sets of our disclosure documents at the same
address this year or in future years, the shareholders should
follow the instructions described below. Similarly, if an address
is shared with another shareholder and together both of the
shareholders would like to receive only a single set of our
disclosure documents, the shareholders should follow these
instructions:
• if
the shares are registered in the name of the shareholder, the
shareholder should contact us at our offices at 1220 L St NW,
Suite 100-397, Washington, DC
20005, to inform us of the shareholder’s request; or
• if
a bank, broker or other nominee holds the shares, the shareholder
should contact the bank, broker or other nominee directly.
WHERE YOU CAN FIND MORE
INFORMATION
We file reports, proxy statements and other information with the
SEC as required by the Exchange Act. You can read our SEC
filings, including this Proxy Statement, at the SEC’s website at
http://www.sec.gov.
Those filings are also available free of charge to the public on,
or accessible through, our corporate website at
https://www.scvx.com. Our website and the information
contained on, or that can be accessed through, the website is not
deemed to be incorporated by reference in, and is not considered
part of, this Proxy Statement.
If you would like additional copies of this Proxy Statement or if
you have questions about the proposals to be presented at the
Extraordinary General Meeting, you should contact our proxy
solicitation agent at the following address and telephone
numbers:
Morrow Sodali LLC
333 Ludlow Street, 5th Floor, South
Tower
Stamford, Connecticut 06902
Individuals can call toll-free at:
(800) 662-5200
Banks and brokers can call collect at: (203) 658-9400
E-mail:
SCVX.info@investor.morrowsodali.com
You may also obtain these documents by requesting them in writing
from us by addressing such request to our Secretary at SCVX Corp.,
1220 L St NW, Suite 100-397,
Washington, DC 20005.
If
you are a shareholder of the Company and would like to request
documents, please do so by July 18, 2022, in order to receive
them before the Extraordinary General
Meeting. If you request any documents
from us, we will mail them to you by first class mail, or another
equally prompt means.
35

YOUR VOTE IS IMPORTANT. PLEASE VOTE
TODAY. Vote by Internet – QUICK EASY IMMEDIATE - 24 Hours a Day, 7
Days a Week or by Mail SCVX CORP. Your Internet vote authorizes the
named proxies to vote your shares in the same manner as if you
marked, signed and returned your proxy card. Votes submitted
electronically over the Internet must be received by 11:59 p.m.,
Eastern Time, on July 26, 2022. INTERNET – www.cstproxyvote.com Use
the Internet to vote your proxy. Have your proxy card available
when you access the above website. Follow the prompts to vote your
shares. Vote at the Meeting – If you plan to attend the virtual
online extraordinary general meeting, you will need your 12 digit
control number to vote electronically at the extraordinary general
meeting. To attend the extraordinary general meeting, visit:
https://www.cstproxy.com/scvx/ext2022 MAIL – Mark, sign and date
your proxy card and return it in the postage-paid envelope
provided. PLEASE DO NOT RETURN THE PROXY CARD IF YOU ARE VOTING
ELECTRONICALLY. FOLD HERE • DO NOT SEPARATE • INSERT IN ENVELOPE
PROVIDED PROXY THE BOARD OF DIRECTORS RECOMMENDS A VOTE “FOR”
PROPOSAL 1 AND PROPOSAL 2 Please mark your votes like this Proposal
1 — Extension Proposal FOR AGAINST ABSTAIN Extend the date that the
Company has to consummate a business combination from July 28, 2022
to April 28, 2023. Proposal 2 — Adjournment Proposal Adjourn the
Extraordinary General Meeting to a later date or dates, if
necessary, to permit further solicitation and vote of proxies in
the event that there are insufficient votes for, or otherwise in
connection with, the approval of Proposal 1. FOR AGAINST ABSTAIN
PLEASE SIGN, DATE AND RETURN THE PROXY IN THE ENVELOPE ENCLOSED TO
CONTINENTAL STOCK TRANSFER & TRUST COMPANY. THIS PROXY WILL BE
VOTED IN THE MANNER DIRECTED HEREIN BY THE ABOVE SIGNED
SHAREHOLDER. IF NO DIRECTION IS MADE, YOUR ORDINARY SHARES WILL NOT
COUNT TOWARDS THE QUORUM REQUIREMENT FOR THE EXTRAORDINARY GENERAL
MEETING AND YOUR ORDINARY SHARES WILL NOT BE VOTED. THIS PROXY WILL
REVOKE ALL PRIOR PROXIES SIGNED BY YOU. CONTROL NUMBER Signature
Signature, if held jointly Date 2022. Signature should agree with
name printed hereon. If shares are held in the name of more than
one person, EACH joint owner should sign. Executors,
administrators, trustees, guardians and attorneys should indicate
the capacity in which they sign. Attorneys should submit powers of
attorney. Important Notice Regarding the Availability of Proxy
Materials for the Extraordinary General Meeting to be held on July
27, 2022: This notice of extraordinary general meeting and the
accompanying Proxy Statement are available at:
https://www.cstproxy.com/scvx/ext2022 FOLD HERE • DO NOT SEPARATE •
INSERT IN ENVELOPE PROVIDED PROXY SCVX CORP. THIS PROXY IS
SOLICITED BY THE BOARD OF DIRECTORS FOR THE EXTRAORDINARY GENERAL
MEETING TO BE HELD ON JULY 27, 2022 20527 SCVX CORP. Proxy Card
REV2 Back The undersigned, revoking any previous proxies relating
to these shares with respect to the Extension Proposal and the
Adjournment Proposal hereby acknowledges receipt of the notice and
Proxy Statement, dated July [•], 2022, in connection with the
Extraordinary General Meeting to be held at 9:00 a.m. Eastern Time
on July 27, 2022 at the offices of Willkie Farr & Gallagher
LLP, located at 787 Seventh Avenue, New York, New York 10019 (only
to the extent consistent with, or permitted by, applicable law and
directives of public health authorities), for the sole purpose of
considering and voting upon the following proposals, and hereby
appoints Michael Doniger, Hank Thomas, Chris Ahern and the Chairman
of the Extraordinary General Meeting, and each of them (with full
power to act alone), the attorneys and proxies of the undersigned,
with power of substitution to each, to vote all shares of the
ordinary shares of SCVX Corp. (the “Company”) registered in the
name provided, which the undersigned is entitled to vote at the
Extraordinary General Meeting, and at any adjournments thereof,
with all the powers the undersigned would have if personally
present. Without limiting the general authorization hereby given,
said proxies are, and each of them is, instructed to vote or act as
follows on the proposals set forth in this Proxy Statement. THE
SHARES REPRESENTED BY THIS PROXY WHEN PROPERLY EXECUTED WILL BE
VOTED IN THE MANNER DIRECTED HEREIN BY THE UNDERSIGNED SHAREHOLDER.
PLEASE MARK, SIGN, DATE AND RETURN THE PROXY CARD PROMPTLY.
(Continued and to be marked, dated and signed on the other
side)

Important Notice Regarding the
Availability of Proxy Materials for the Extraordinary General
Meeting to be held on July 27, 2022: This notice of extraordinary
general meeting and the accompanying Proxy Statement are available
at: https://www.cstproxy.com/scvx/ext2022 FOLD HERE • DO NOT
SEPARATE • INSERT IN ENVELOPE PROVIDED PROXY SCVX CORP. THIS PROXY
IS SOLICITED BY THE BOARD OF DIRECTORS FOR THE EXTRAORDINARY
GENERAL MEETING TO BE HELD ON JULY 27, 2022 20527 SCVX CORP. Proxy
Card REV2 Back The undersigned, revoking any previous proxies
relating to these shares with respect to the Extension Proposal and
the Adjournment Proposal hereby acknowledges receipt of the notice
and Proxy Statement, dated July [•], 2022, in connection with the
Extraordinary General Meeting to be held at 9:00 a.m. Eastern Time
on July 27, 2022 at the offices of Willkie Farr & Gallagher
LLP, located at 787 Seventh Avenue, New York, New York 10019 (only
to the extent consistent with, or permitted by, applicable law and
directives of public health authorities), for the sole purpose of
considering and voting upon the following proposals, and hereby
appoints Michael Doniger, Hank Thomas, Chris Ahern and the Chairman
of the Extraordinary General Meeting, and each of them (with full
power to act alone), the attorneys and proxies of the undersigned,
with power of substitution to each, to vote all shares of the
ordinary shares of SCVX Corp. (the “Company”) registered in the
name provided, which the undersigned is entitled to vote at the
Extraordinary General Meeting, and at any adjournments thereof,
with all the powers the undersigned would have if personally
present. Without limiting the general authorization hereby given,
said proxies are, and each of them is, instructed to vote or act as
follows on the proposals set forth in this Proxy Statement. THE
SHARES REPRESENTED BY THIS PROXY WHEN PROPERLY EXECUTED WILL BE
VOTED IN THE MANNER DIRECTED HEREIN BY THE UNDERSIGNED SHAREHOLDER.
PLEASE MARK, SIGN, DATE AND RETURN THE PROXY CARD PROMPTLY.
(Continued and to be marked, dated and signed on the other
side)