Private Placement
Warrants
DCRBs Sponsor, certain of DCRBs independent directors consisting of Dr. Jennifer Aaker, Jane Kearns, Jim
McDermott, Jeffrey Tepper and Michael Warren and WRG purchased an aggregate of 6,000,000 private placement warrants for a purchase price of $1.00 per warrant in a private placement that occurred simultaneously with the closing of DCRBs initial
public offering. On November 12, 2020, DCRB completed a private placement with its Sponsor and WRG for an additional 514,500 warrants at a price of $1.00 per warrant, generating gross proceeds of approximately $514,500. As such, the interest of
DCRBs Sponsor, certain of DCRBs independent directors and WRG in this transaction is valued at approximately $6,514,500.
In
connection with the Closing, an additional 1,500,000 private placement warrants were also issued to the DCRB Sponsor, see Related Party Loans and Advances, below.
Each private placement warrant entitles the holder to purchase one share of our Class A Common Stock at $11.50 per share.
Administrative Support Agreement
On October 19, 2020, DCRB entered into an administrative support agreement with an affiliate of its Sponsor, pursuant to which DCRB paid an affiliate of its Sponsor a total of $10,000 per month for office space, utilities and
secretarial and administrative support. Upon consummation of the Business Combination, DCRB ceased paying these monthly fees.
DCRBs Sponsor, officers and directors, or any of their respective affiliates, have been reimbursed for any out-of-pocket expenses incurred in connection with activities on DCRBs behalf. There was no cap or ceiling on the reimbursement of
out-of-pocket expenses incurred by such persons in connection with activities on DCRBs behalf.
Related Party Loans and Advances
DCRBs liquidity needs up to its initial public offering were satisfied through receipt of a $25,000 capital contribution from DCRBs Sponsor in exchange for the issuance of DCRB Founder Shares to DCRBs Sponsor and a
loan from DCRBs Sponsor for an aggregate amount of $300,000 to cover organizational expenses and expenses related to the initial public offering pursuant to a promissory note. On September 13, 2017, DCRB drew down $300,000 on this
promissory note. DCRB repaid this promissory note in full to its Sponsor on October 21, 2020. Subsequent to the consummation of its initial public offering, DCRBs liquidity needs had been satisfied through the net proceeds of
approximately $2.0 million from the private placement held outside of the Trust Account.
In addition to the promissory note,
DCRBs Sponsor paid certain costs related to DCRBs formation and offering. Costs in the amount of $219,022 were forgiven by the Sponsor in December 2019 and were recorded within additional paid-in
capital. As of October 22, 2020, DCRB owed its Sponsor $135,941 for additional offering costs, which were subsequently paid back in November 2020.
As of October 22, 2020, the Sponsor and WRG advanced $600,000 to DCRB to cover the purchase of additional private placement warrants if the over-allotment were to be exercised in full. As of October 22, 2020, advances
amounting to $600,000 were outstanding. Simultaneously with the closing of the sale of the units from the underwriters partial exercise of their over-allotment option, DCRB utilized the advance from its Sponsor and WRG to issue an additional
514,500 private placement warrants at a price of $1.00 per private placement warrant.
On June 28, 2021, DCRB issued an unsecured
promissory note (the Sponsor Note) in the principal amount of $1,500,000 to the Sponsor. Pursuant to the terms of the Sponsor Note, at the Closing of the Business Combination, the Sponsor converted $1,500,000 principal amount of the
Sponsor Note into 1,500,000 private placement warrants.
Registration Rights
The holders of the DCRB Founder Shares and private placement warrants (and any shares of Class A Common Stock issuable upon the exercise of the
private placement warrants and upon conversion of the DCRB Founder Shares) are entitled to registration rights pursuant to the IPO Registration Rights Agreement, dated October 19, 2020 (the IPO Registration Rights Agreement),
requiring us to register such securities for resale (in the case of the DCRB Founder Shares, the shares of Class A Common Stock that the DCRB Founder Shares converted into on the Closing Date). The holders of at least $25 million in value
of these securities are entitled to demand that we file a registration statement covering such securities and to require us to effect up to an aggregate of three underwritten offerings of such securities. In
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