AVANTI ACQUISITION CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED MARCH 31,
We are a blank check company incorporated in the Cayman Islands on
July 24, 2020 formed for the purpose of effecting a merger,
amalgamation, share exchange, asset acquisition, share purchase,
reorganization or other similar Business Combination with one or
more businesses. We intend to effectuate our Business Combination
using cash derived from the proceeds of the Initial Public Offering
and the sale of the Private Placement Warrants, our shares, debt or
a combination of cash, shares and debt.
We expect to continue to incur significant costs in the pursuit of
our acquisition plans. We cannot assure you that our plans to
complete a Business Combination will be successful.
Results of Operations
We have neither engaged in any operations nor generated any
operating revenues to date. Our only activities from inception
through March 31, 2021 were organizational activities, those
necessary to prepare for the initial public offering, described
below, and identifying a target company for a Business Combination.
We do not expect to generate any operating revenues until after the
completion of our initial Business Combination. We expect to
income in the form of interest income on marketable securities held
after the initial public offering. We expect that we will incur
increased expenses as a result of being a public company (for
legal, financial reporting, accounting and auditing compliance), as
well as for due diligence expenses in connection with searching
for, and completing, a Business Combination.
For the three months ended March 31, 2021, we had a net income
of $24,902,196, which consisted of interest earned on marketable
securities held in the Trust Account of $9,018, change in fair
value of warrant liability of $20,240,000 and change in fair value
of FPA liability of $5,054,119, offset by operating expenses of
Liquidity and Capital Resources
On October 6, 2020, we consummated an initial public offering
(the “Initial Public Offering”) of 60,000,000 units, at a price of
$10.00 per unit, generating gross proceeds of $600,000,000.
Simultaneously with the closing of the Initial Public Offering, we
consummated the sale of 14,000,000 private placement warrants
(“Private Placement Warrants”) to the Sponsor at a price of $1.00
per Private Placement Warrant generating gross proceeds of
Following the Initial Public Offering and the sale of the Private
Placement Warrants, a total of $600,000,000 was placed in the Trust
Account, and we had $2,960,219 of cash held outside of the Trust
Account, after payment of costs related to the Initial Public
Offering, and available for working capital purposes. We incurred
$33,588,903 in transaction costs, including $12,000,000 of
underwriting fees, $21,000,000 of deferred underwriting fees and
$588,903 of other offering costs.
For the three months ended March 31, 2021, net cash used in
operating activities was $761,907. Net income of $24,902,196 was
affected by interest earned on marketable securities of $9,018,
change in fair value of warrant liability of $20,240,000, change in
fair value of FPA liability of $5,054,119 and changes in operating
assets and liabilities, which used $360,966 of cash from operating