Liquidity and Capital Resources
For the period from March 11, 2021 (inception) through September 30, 2021, net cash used in operating activities was $799,135 which was due to our net income of $4,434,975, expensed offering costs of $519,498, partially offset by the changes in working capital accounts of $198,215 and the change in fair value of warrant liability of $5,553,385, and unrealized gain on investments held in Trust Account of $2,008.
For the period from March 11, 2021 (inception) through September 30, 2021, net cash used in investing activities of $219,611,310 was the result of the amount of net proceeds from the Initial Public Offering and the private placement sale of warrants being deposited to the Trust Account.
Net cash provided by financing activities for the for the period from March 11, 2021 (inception) through September 30, 2021 of $221,416,571 was comprised of $25,000 in proceeds from issuance of Class B ordinary shares to Sponsor, $215,219,083 in proceeds from the issuance of Units in the Initial Public Offering net of underwriter's discount paid and $6,392,228 in proceeds from the issuance of warrants in a private placement to our Sponsor, partially offset by payment of $219,740 for offering costs associated with the Initial Public Offering.
On August 3, 2021, we consummated our initial public offering of 20,000,000 units. Each Unit consisted of one share of Class A ordinary shares of the Company, par value $0.0001 per share (the “Public Shares”) and one-third of one redeemable warrant of the Company, with each whole warrant entitling the holder thereof to purchase one share of Class A ordinary shares for $11.50 per share. The Units were sold at a price of $10.00 per Unit, generating gross proceeds to the Company of $200,000,000. The Company granted the underwriters a 45-day option to purchase up to 3,000,000 additional Units solely to cover over-allotments.
Simultaneously with the consummation of the Initial Public Offering, we completed the private sale of 4,000,000 warrants to XPAC Sponsor, LLC, our Sponsor, at a purchase price of $1.50 per warrant (the “Private Placement Warrants”), generating gross proceeds of $6,000,000. The proceeds from the sale of the Private Placement Warrants were added to the net proceeds from the initial public offering held in a trust account (the “Trust Account”). If we do not complete our initial business combination within 24 months from the closing of the initial public offering, the proceeds from the sale of the Private Placement Warrants will be used to fund the redemption of the Public Shares (subject to the requirements of applicable law) and the Private Placement Warrants will expire worthless.
On August 16, 2021, the underwriter partially exercised the over-allotment option and on August 19, 2021, purchased an additional 1,961,131 Units from the Company (the “Over-Allotment Units”) at $10.00 per Unit, generating additional gross proceeds of $19,611,310 to the Company. In addition, the Company issued 261,485 Private Placement Warrants to the Sponsor. The underwriters have the right to exercise the remaining portion of the over-allotment option during the aforementioned 45-day period.
We intend to use substantially all of the funds held in the trust account, including any amounts representing interest earned on the trust account (less taxes payable and deferred underwriting commissions), to complete our initial business combination. We may withdraw interest income (if any) to pay income taxes, if any. Our annual income tax obligations will depend on the amount of interest and other income earned on the amounts held in the trust account. We expect the interest income earned on the amount in the trust account (if any) will be sufficient to pay our income taxes. To the extent that our equity or debt is used, in whole or in part, as consideration to complete our initial business combination, the remaining proceeds held in the trust account will be used as working capital to finance the operations of the target business or businesses, make other acquisitions and pursue our growth strategies.
In order to fund working capital deficiencies or finance transaction costs in connection with an intended initial business combination, our sponsor or an affiliate of our sponsor or certain of our directors and officers may, but are not obligated to, loan us funds as may be required. If we complete our initial business combination, we may repay such loaned amounts out of the proceeds of the trust account released to us. Otherwise, such loans may be repaid only out of funds held outside the trust account. In the event that our initial business combination does not close, we may use a portion of the working capital held outside the trust account to repay such loaned amounts but no proceeds from our trust