TLGY Acquisition Corporation (NASDAQ:TLGY), a company specializing in plastics and synthetic resins, today reported entering into material definitive agreements with CPC Sponsor Opportunities I, LP and CPC Sponsor Opportunities I (Parallel), LP (“the Lenders”). This development was formally disclosed in a filing with the U.S. Securities and Exchange Commission (SEC).
On Monday, the company, also referred to as “the Company,” issued unsecured promissory notes to the Lenders, allowing it to borrow up to $545,000 and $455,000, respectively. These notes are non-interest bearing and are due on the earlier of fifteen months post-IPO or upon the completion of an initial business combination. The notes can be prepaid at any time by the Lenders without penalty.
Furthermore, the Lenders have the option to convert the unpaid principal balance of the notes into warrants for purchasing Class A common stock of TLGY Acquisition Corporation. This conversion can occur upon the consummation of an initial business combination, with the number of warrants determined by dividing the unpaid principal by $1.00. These “Working Capital Warrants” will have the same characteristics as those issued in the private placement at the time of the IPO, including customary registration rights.
The agreement also outlines conditions constituting an “Event of Default,” which includes failure to pay the principal by the maturity date, voluntary or involuntary bankruptcy. In such events, the unpaid principal and other amounts become immediately due.
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