UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A
Proxy Statement Pursuant to Section 14(a) of
the Securities Exchange Act of 1934
Filed by the Registrant ☒
Filed by a Party other than the Registrant ☐
Check the appropriate box:
| ☒ |
Preliminary Proxy Statement |
| ☐ |
Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) |
| ☐ |
Definitive Proxy Statement |
| ☐ |
Definitive Additional Materials |
| ☐ |
Soliciting Material under §240.14a-12 |
Cactus Acquisition Corp. 1 Ltd.
(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):
| ☐ |
Fee paid previously with preliminary materials. |
| ☐ |
Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules 14a6(i)(1) and 0-11 |
PRELIMINARY PROXY
STATEMENT - SUBJECT TO COMPLETION, DATED OCTOBER 17, 2023
Cactus Acquisition
Corp. 1 Ltd.
4B Cedar Brook Drive
Cranbury, NJ 08512
October __, 2023
Dear Shareholders:
On behalf of the board
of directors (the “Board”) of Cactus Acquisition Corp. 1 Ltd. (the “Company” or “Cactus”),
I invite you to attend an extraordinary general meeting of the Company (the “Meeting”). The Meeting will be held at
9:00 a.m. Eastern Time/ 3:00 p.m. local (Israel) time on November 2, 2023. The Company will be holding the Meeting at Meitar Law Offices,
16 Abba Hillel Road, 10th floor, Ramat Gan, Israel 5250608, and via live webcast, or at
such other time, on such other date and at such other place at which the Meeting may be adjourned or postponed. You will be able to attend
the Meeting, vote and submit your questions online before the Meeting by visiting https://www.cstproxy.com/cactusac/ext2023. The
Notice of Meeting of Shareholders, the proxy statement and the proxy card that each accompany this letter are also available at https://www.cstproxy.com/cactusac/ext2023.
As discussed in the enclosed
proxy statement, the purpose of the Meeting is to consider and vote upon the following proposals:
| 1. |
Proposal No. 1 — A proposal to approve, by way of special resolution, an amendment
to Cactus’ Amended and Restated Memorandum and Articles of Association (the “Articles”) to extend the date by
which Cactus has to consummate a business combination (the “Termination Date”) from November 2, 2023 (the “Current
Termination Date”) to November 2, 2024 (the “Articles Extension Date”) or such earlier date as may be determined
by the Board in its sole discretion (the “Articles Extension”, and this proposal, the “Articles Extension
Proposal”). A copy of the proposed amendment to the Articles is set forth in Annex A to the accompanying proxy statement; |
| 2. |
Proposal No. 2 — A proposal to amend the Company’s investment management trust agreement, dated as of November
2, 2021 and amended on April 20, 2023 (the “Trust Agreement”), by and between the Company and Continental Stock Transfer
& Trust Company (“Continental” or the “Trustee”), to extend the date by which the Company would
be required to consummate a business combination from the Current Termination Date to the Articles Extension Date, or such earlier date
as may be determined by the Board in its sole discretion (the “Trust Extension”) (the “Trust Extension Proposal”);
and |
| |
|
| 3. |
Proposal No. 3 — A proposal to approve, by way of ordinary resolution, the adjournment of the Meeting to a later time, if necessary or desirable, to permit further solicitation and vote of proxies if, based upon the tabulated vote at the time of the Meeting, there are insufficient votes for, or otherwise in connection with, the approval of either of the foregoing proposals (the “Adjournment Proposal”). |
Approval of each of the
Articles Extension Proposal and Trust Extension Proposal is a condition to the implementation of the Articles Extension. The Adjournment
Proposal will only be presented at the Meeting if there are not sufficient votes to approve either of the other proposals.
Each of the proposals
is more fully described in the accompanying proxy statement. Please take the time to read carefully each of the proposals in the accompanying
proxy statement before you vote. In addition to considering and voting on the foregoing proposals, members of the Company’s management
will be available at the Meeting to answer questions of shareholders regarding the Company’s current affairs.
The purpose of the Articles
Extension Proposal is to provide us with additional time to complete a business combination. Our efforts to complete a business combination
will involve: (1) entering into a definitive business combination agreement; (2) filing a registration statement containing a proxy statement/prospectus
for a shareholders meeting to approve our initial business combination and completing the review process of the Securities and Exchange
Commission with respect to that filing; (3) establishing a meeting date and record date for a general meeting to approve a business combination,
and distributing proxy materials to shareholders; and (4) holding the meeting to approve an initial business combination. Without the
Articles Extension, we will not be able to complete an initial business combination on or before the Termination Date. If that were to
occur, Cactus would be forced to liquidate. Therefore, the Board has determined that it is in the best interests of our shareholders to
extend the date by which the Company has to consummate an initial business combination to the Articles Extension Date in order for our
shareholders to have the opportunity to participate in an investment in a company with which we may combine. If a suitable business combination
is timely identified, the Company intends to hold the above-referenced shareholders meeting prior to the Articles Extension Date in order
to seek shareholder approval of an initial business combination. In addition, the Board believes that it is advantageous for the Board
to be able to determine, in its sole discretion, whether to liquidate and dissolve the Company at an earlier date. Approval of the Articles
Extension Proposal is a condition to the implementation of the Articles Extension.
Only holders of record
of our Class A ordinary shares and Class B ordinary shares (collectively, the “ordinary shares”) at the close of business
on October 19, 2023 are entitled to notice of the Meeting and to vote at the Meeting and any adjournments or postponements of the Meeting.
Our Board has approved
the proposals, and recommends that shareholders vote in favor of each proposal. Approval of the Articles Extension Proposal requires a
special resolution as a matter of Cayman Islands law, being a resolution passed by majority of at least two-thirds of Cactus’ shareholders
as, being entitled to do so, vote in person or by proxy at the Meeting, and includes a unanimous written resolution. Approval of the Trust
Extension Proposal requires the affirmative vote of the holders of at least 65% of the outstanding Company ordinary shares entitled to
vote thereon. Approval of the Adjournment Proposal requires an ordinary resolution being a resolution passed by a simple majority of the
shareholders of Cactus as, being entitled to do so, vote in person or by proxy at the Meeting, and includes a unanimous written resolution.
All of the Class B ordinary shares in the capital of Cactus are currently held by Cactus Healthcare Management, L.P. (the “Sponsor”).
In connection with the
Articles Extension Proposal, holders (“public shareholders”) of the Company’s Class A ordinary shares that were
sold in our initial public offering (the “IPO”) (“Public Shares”) may elect to redeem their Public
Shares (a “Redemption”) for a per-share price, payable in cash, equal to the aggregate amount then on deposit in the
trust account (the “Trust Account”) established in connection with the IPO, including interest not previously released
to the Company to pay taxes, divided by the number of then outstanding Public Shares, regardless of whether or how such public shareholders
vote on the proposals at the Meeting. However, redemption payments for Redemptions in connection with this Meeting will only be
made if both the Articles Extension Proposal and the Trust Extension Proposal receive the requisite shareholder approvals and we determine
to implement the Articles Extension and Trust Extension.
You are not being asked
to vote on any business combination at this time. If the Articles Extension Proposal and the Trust Extension Proposal are approved
by the requisite vote of shareholders, the remaining holders of Public Shares will retain their right to redeem their Public Shares if
and when a business combination proposal is submitted to shareholders for approval, subject to any limitations set forth in our Articles.
In addition, public shareholders who do not make a Redemption will be entitled to have their Public Shares redeemed for cash if the Company
has not completed a business combination before the expiration of the Articles Extension, subject to any limitations set forth in our
Articles.
If the Articles Extension
Proposal and Trust Extension Proposal are approved and the Articles Extension is implemented, then in accordance with the Trust Agreement,
the Company’s trust account (the “Trust Account”) will not be liquidated (other than to effectuate the Redemptions
described above) until the earlier of (a) receipt by the Trustee of a termination letter (in accordance with the terms of the Trust Agreement)
or (b) the expiration of the period of the Articles Extension.
To exercise your redemption
rights, you must tender your shares to Continental Stock Transfer & Trust Company, the Company’s transfer agent, prior to 5:00
P.M. Eastern Time on October 31, 2023 (two business days prior to the Meeting). You may tender your shares by delivering your shares electronically
using the Depository Trust Company’s DWAC (Deposit/Withdrawal At Custodian) system. If you hold your shares in street name, you
will need to instruct your bank, broker or other nominee to withdraw the shares from your account in order to exercise your redemption
rights. The redemption rights include the requirement that a shareholder must identify itself in writing as a beneficial holder and provide
its legal name, phone number, and address in order to validly redeem its Public Shares.
Holders of units must
elect to separate the underlying Public Shares and public warrants prior to exercising redemption rights with respect to the Public Shares.
If holders hold their units in an account at a brokerage firm or bank, holders must notify their broker or bank that they elect to separate
the units into the underlying Public Shares and public warrants, or if a holder holds units registered in its, his or her own name, the
holder must contact the transfer agent directly and instruct it to do so.
Any demand for redemption,
once made, may be withdrawn at any time until the deadline for exercising redemption requests and, thereafter, with our consent. Furthermore,
if a holder of Public Shares delivers the certificate representing such holder’s shares in connection with a Redemption and subsequently
decides prior to the applicable date not to elect to exercise such rights, such holder may request that the transfer agent return the
certificate (physically or electronically).
The Company estimates
that the per-share pro rata portion of the Trust Account will be approximately $10.88 at the time of the Meeting. The closing price of
the Company’s ordinary shares on the Nasdaq Global Market on October 16, 2023 was $10.88. Accordingly, if the market price were
to remain the same until the date of the Meeting, exercising redemption rights would result in a public shareholder receiving approximately
the same price for each share as such shareholder would receive by selling the shares in the open market. The Company cannot assure shareholders
that they will be able to sell their Public 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 its securities when such shareholders wish to sell their Public Shares.
After careful consideration
of all relevant factors, the Board has determined that each of the proposals is advisable and recommends that you vote or give instruction
to vote “FOR” such proposals.
Enclosed is the proxy
statement containing detailed information concerning the Meeting, the Articles Extension Proposal, the Trust Extension Proposal and the
Adjournment Proposal. Whether or not you plan to participate in the Meeting virtually or in person, we urge you to read this material
carefully and vote your shares.
| Sincerely, |
|
| |
|
| /s/ Nachum (Homi) Shamir |
|
| Nachum (Homi) Shamir, |
|
| Chairman of the Board |
|
| October __, 2023 |
|
Cactus Acquisition Corp. 1 Ltd.
4B Cedar Brook Drive
Cranbury, NJ 08512
NOTICE OF EXTRAORDINARY GENERAL MEETING
OF
Cactus
Acquisition Corp. 1 Ltd.
TO BE HELD ON NOVEMBER 2, 2023
To the Shareholders of Cactus Acquisition Corp. 1 Ltd.:
NOTICE IS HEREBY GIVEN
that an extraordinary general meeting (the “Meeting”) of Cactus Acquisition Corp. 1 Ltd., a Cayman Islands exempted
company (the “Company,” “Cactus”, “we” or “us”), will be held
on November 2, 2023, at 9:00 a.m. Eastern Time/ 3:00 p.m. local (Israel) time. The Company will be holding the Meeting at
Meitar Law Offices, 16 Abba Hillel Road, 10th floor, Ramat Gan, Israel 5250608, and via
live webcast, or at such other time, on such other date and at such other place at which the Meeting may be adjourned or postponed. You
will be able to attend the Meeting, vote and submit your questions online before the Meeting by visiting https://www.cstproxy.com/cactusac/ext2023.
The purpose of the Meeting
will be to consider and vote upon the following proposals:
| 1. | Proposal No. 1 — A proposal to
approve, by way of special resolution, an amendment to Cactus’ Amended and Restated Memorandum and Articles of Association (the
“Articles”) to extend the date by which Cactus has to consummate a business combination (the “Termination
Date”) from November 2, 2023 (the “Current Termination Date”) to November 2, 2024 (the “Articles
Extension Date”) or such earlier date as may be determined by the Company’s board of directors in its sole discretion
(the “Articles Extension” and such proposal, the “Articles Extension Proposal”). A copy of the
proposed amendment is set forth in Annex A to the accompanying proxy statement; |
| 2. | Proposal No. 2 — A proposal
to amend the Company’s investment management trust agreement, dated as of November 2, 2021 and amended on April 20, 2023 (the “Trust
Agreement”), by and between the Company and Continental Stock Transfer & Trust Company (“Continental”),
to extend the date by which the Company would be required to consummate a business combination from November 2, 2023 to November 2, 2024,
or such earlier date as may be determined by our Board in its sole discretion (the “Trust Extension”) (the “Trust
Extension Proposal”); |
| 3. | Proposal No. 3 — A proposal
to approve, by way of ordinary resolution, the adjournment of the Meeting to a later time, if necessary or desirable, to permit further
solicitation and vote of proxies if, based upon the tabulated vote at the time of the Meeting, there are insufficient votes for, or otherwise
in connection with, the approval of either of the foregoing proposals (the “Adjournment Proposal”). |
The Board has fixed the
close of business on October 19, 2023 as the record date for the Meeting and only holders of shares in the capital of the Company of record
at that time will be entitled to notice of and to vote at the Meeting or any adjournments or postponements thereof.
By Order of the Board
of Directors
| Sincerely, |
|
| |
|
| /s/ Nachum (Homi) Shamir |
|
| Nachum (Homi) Shamir |
|
| Chairman of the Board |
|
| |
|
| Dated: October __, 2023 |
|
IMPORTANT
NOTICE REGARDING THE
AVAILABILITY OF PROXY MATERIALS: WHETHER OR NOT YOU PLAN TO PARTICIPATE VIRTUALLY IN THE MEETING, IT IS REQUESTED THAT YOU INDICATE YOUR
VOTE ON THE PROPOSALS INCLUDED ON THE ENCLOSED PROXY AND DATE, SIGN AND MAIL IT IN THE ENCLOSED SELF-ADDRESSED ENVELOPE WHICH REQUIRES
NO POSTAGE IF MAILED IN THE UNITED STATES OF AMERICA OR SUBMIT YOUR PROXY THROUGH THE INTERNET AS PROMPTLY AS POSSIBLE.
IMPORTANT NOTICE REGARDING
THE AVAILABILITY OF PROXY MATERIALS: THIS NOTICE OF EXTRAORDINARY GENERAL MEETING AND PROXY STATEMENT TO THE SHAREHOLDERS WILL BE AVAILABLE
AT https://www.cstproxy.com/CACTUSAC/EXT2023. WE ARE FIRST MAILING THESE MATERIALS
TO OUR SHAREHOLDERS ON OR ABOUT OCTOBER 27, 2023.
Cactus
Acquisition Corp. 1 Ltd.
4B
Cedar Brook Drive
Cranbury, NJ 08512
TABLE OF CONTENTS
Cactus
Acquisition Corp. 1 Ltd.
PROXY STATEMENT
FOR AN EXTRAORDINARY GENERAL MEETING OF THE
COMPANY
To be held at 9:00 a.m. Eastern Time/ 3:00 p.m.
Israel time on November 2, 2023
The information provided in
the Questions and Answers below 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, including the annexes to this proxy statement.
QUESTIONS AND ANSWERS ABOUT THE SHAREHOLDER
MEETING
Why am I receiving this
proxy statement?
This proxy statement of
Cactus Acquisition Corp. 1 Ltd. (the “Company,” “Cactus,” “we” or “us”)
and the enclosed proxy card are being sent to you in connection with the solicitation of proxies by our board of directors (the “Board”)
for use at an extraordinary general meeting of the Company (the “Meeting”), or at any adjournments or postponements
thereof. This proxy statement summarizes the information that you need to make an informed decision on the proposals to be considered
at the Meeting.
We are a blank check company
formed on April 19, 2021 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 (our “initial business
combination”). Our sponsor is Cactus Healthcare Management LP, a Delaware limited partnership, which we refer to herein as our
“Sponsor”. On November 2, 2021, we consummated the closing of our initial public offering, selling 12,650,000 units
(the “Public Units”) (representing the units for the base offering and additional units sold upon the exercise in full
by the underwriters of their over-allotment option). Each unit consists of one Class A ordinary share (each, a “Public Share”)
and one-half of a redeemable warrant of the Company (each, a “Public Warrant”), with each whole Public Warrant entitling
the holder thereof to purchase one Class A ordinary share for $11.50 per share. The Public Units were sold at a price of $10.00 per unit,
generating gross proceeds to the Company of $126,500,000 at closing.
Substantially concurrent
with the closing of its initial public offering (the “IPO”), the Company completed the private sale of 4,866,667 warrants
(“Private Warrants”), to our Sponsor at a purchase price of $1.50 per Private Warrant, generating aggregate gross proceeds
of $7,300,000 for the Company. Following the closing, we deposited a total of $129,030,000 in a trust account administered by Continental
Stock Transfer & Trust Company, acting as trustee (the “Trust Account”). Prior to our initial public offering,
our Sponsor purchased an aggregate of 2,875,000 Class B ordinary shares (“Founder Shares”) for an aggregate purchase
price of $25,000. Prior to the initial investment in the Company of $25,000 by our Sponsor, the Company had no assets, tangible or intangible.
In October 2021, we effected a share dividend of 0.1 shares for each ordinary share then outstanding, which resulted in 3,162,500
Founder Shares outstanding and held by our Sponsor.
Like most blank check companies’ governing
documents, our amended and restated memorandum and articles of association (the “Articles”) provide for the return
of the IPO proceeds held in the Trust Account to the holders of Public Shares if there is no qualifying business combination consummated
on or before a certain date. We refer to the aggregate period from the IPO until that date as the “business combination period”.
In our case, the business combination period was originally 18 months, and was set to expire on May 2, 2023. On April 20, 2023, we held
an extraordinary general meeting in lieu of 2023 annual general meeting (the “Initial Extension Meeting”) at which
our shareholders approved, among other proposals, the extension of the business combination period by six months, such that its expiration
date was extended from May 2, 2023 to November 2, 2023 (the 24-month anniversary of the consummation of our IPO). At
a subsequent extraordinary general meeting that we held on May 30, 2023 (the “Conversion Amendment Meeting”), our
shareholders approved an additional proposal to amend the Articles to remove restrictions on the conversion of Class B ordinary shares
into Class A ordinary shares at the election of the holders thereof (i.e., our Sponsor) prior to our consummation of an initial business
combination.
In connection with the Initial Extension Meeting
and Conversion Amendment Meeting, pursuant to their rights under the Articles, holders
of Public Shares exercised their redemption rights with respect to (i) 10,185,471 Public Shares at a price per share of approximately
$10.48, and (ii) an additional 204,178 Public Shares at a price per share of approximately $10.61, respectively, in each case representing
each such redeemed Public Share’s pro rata portion of the value of the Trust Account as of the time of those respective meetings.
Those redemptions have reduced the total value of the investments in the Trust Account significantly, from approximately $132.6 million
immediately prior to the Initial Extension Meeting to approximately $24.7 million as of October 16, 2023. Those
redemptions have resulted in 2,260,351 Class A ordinary shares (all of which are Public Shares)
remaining outstanding.
The business combination period currently expires
on November 2, 2023. We are proposing that our shareholders approve at the Meeting the extension of the business combination period by
up to an additional 12 months, until November 2, 2024. In order to effect that extension, our Board is submitting the Articles Extension
Proposal and the Trust Extension Proposal (each, as described below) to our shareholders for approval.
In addition to considering
and voting on the proposals described below, members of the Company’s management will be available at the Meeting to answer questions
regarding the Company’s current affairs.
What is being voted
on?
You are being asked to
vote on the following proposals:
(i) Proposal No. 1 —
A proposal to approve, by way of special resolution, an amendment to our Articles to extend the date by which Cactus has to consummate
a business combination (the “Termination Date”) from November 2, 2023 (the “Current Termination Date”)
to November 2, 2024 (the “Articles Extension Date”) or such earlier date as may be determined by the Board in its sole
discretion (such extension, the “Articles Extension”, and this proposal, the “Articles Extension Proposal”).
A copy of the proposed amendment is set forth in Annex A to this proxy statement.
(ii) Proposal No. 2 —
A proposal to amend our investment management trust agreement, dated as of November 2, 2021 and amended on April 20, 2023 (the “Trust
Agreement”), by and between the Company and Continental Stock Transfer & Trust Company (“Continental”),
to extend the date by which the Company is required to consummate a business combination from November 2, 2023 to November 2, 2024, or
such earlier date as may be determined by our Board in its sole discretion (such extension, the “Trust Extension”,
and this proposal, the “Trust Extension Proposal”).
(iii) Proposal No. 3 —
A proposal to approve, by way of ordinary resolution, the adjournment of the Meeting to a later time, if necessary or desirable, to permit
further solicitation and vote of proxies if, based upon the tabulated vote at the time of the Meeting, there are insufficient votes for,
or otherwise in connection with, the approval of either of the foregoing proposals (the “Adjournment Proposal”).
What is the purpose
of the Articles Extension and Trust Extension?
The purpose of the Articles
Extension and the Trust Extension is to provide us with additional time to complete an initial business combination. Our efforts to complete
an initial business combination will involve: (1) entering into a definitive business combination agreement; (2) filing a Registration
Statement for our initial business combination, (3) establishing a meeting date and record date for a meeting to approve an initial business
combination, and distributing proxy materials to shareholders; and (4) holding the meeting to approve an initial business combination.
We will not be able to complete an initial business combination on or before the Current Termination Date. If the Termination Date is
not extended to the Articles Extension Date, Cactus would be forced to liquidate. The Board has determined that it is in the best interests
of our shareholders to extend the Termination Date to the Articles Extension Date, in order to provide to our shareholders an opportunity
to participate in an investment in a company with which we may combine. If a suitable business combination is timely identified, we intend
to hold an additional shareholders meeting prior to the expiration of the extended business combination period in order to seek shareholder
approval of an initial business combination. In addition, the Board believes that it is advantageous for the Board to be able to determine,
in its sole discretion, to liquidate and dissolve the Company at an earlier date if appropriate.
Approval of each of the Articles Extension Proposal
and the Trust Extension Proposal is a condition to the implementation of the Articles Extension.
Why is the Company proposing the Articles
Extension Proposal and Trust Extension Proposal?
The Company’s Articles provide that the Company
currently has until November 2, 2023 (the date which is 24 months after the consummation of the IPO) to complete our initial business
combination. If both the Articles Extension Proposal and the Trust Extension Proposal are approved, the business combination period will
be extended to the Articles Extension Date (i.e., November 2, 2024).
The purpose of the Articles Extension Proposal
is to allow us additional time to complete an initial business combination. The Company believes that given its expenditure of time, effort
and money on finding an initial business combination, circumstances warrant providing public shareholders an opportunity to participate
in an investment in a combined company that will result from such a business combination.
Why should I vote “FOR” the Articles
Extension Proposal and Trust Extension Proposal?
Our Board believes shareholders will benefit from
the Company consummating an initial business combination and is proposing the Articles Extension and Trust Extension to extend the date
by which the Company may complete an initial business combination. Your vote in favor of the Articles Extension Proposal and the Trust
Extension Proposal is required for the Company to implement the Articles Extension and the Trust Extension, respectively.
The Company’s existing Articles provide that
if the Company’s shareholders approve an amendment to the Articles that would affect the substance or timing of the Company’s
obligation to redeem Public Shares if the Company does not complete its initial business combination before November 2, 2023, the Company
will provide to holders of its Public Shares (“public shareholders”) an opportunity to redeem, subject to the redemption
limitation as described in the Company’s Articles, all or a portion of their Public Shares upon such approval (a “Redemption”)
at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest earned on
the Trust Account deposits (which interest shall be net of taxes payable), divided by the number of then outstanding Public Shares. This
Articles provision was included to protect the Company’s shareholders from having to sustain their investments for an unreasonably
long period if the Company failed to find a suitable business combination during the business combination period. If you do not elect
to redeem your Public Shares, you will retain the right to vote on an initial business combination in the future and the right to redeem
your Public Shares in connection with an initial business combination.
Our Board recommends that you vote in favor of
the Articles Extension Proposal and Trust Extension Proposal but expresses no opinion as to whether you should redeem your Public Shares.
Public shareholders may elect to redeem their Public Shares regardless of whether or how they vote on the proposals at the Meeting; however,
redemption payments for Redemptions in connection with this Meeting will only be made if the Articles Extension Proposal and the Trust
Extension Proposal receive the requisite shareholder approvals and we determine to implement the Articles Extension and Trust Extension.
Why should I vote “FOR” the Adjournment
Proposal?
If the Adjournment Proposal is not approved by
our shareholders, our Board may not be able to adjourn the Meeting to a later time in the event that there are insufficient votes for,
or otherwise in connection with, the approval of the other proposals.
How do the Company insiders intend to vote
their shares?
All of the Company’s directors and their
respective affiliates are expected to vote all shares over which they have voting control in favor of all proposals being presented at
the Meeting.
Our Sponsor, directors and officers have entered
into a letter agreement with us pursuant to which they have agreed to vote any shares owned by them in favor of any proposed initial business
combination and to waive their redemption rights with respect to their shares in connection with (i) the completion of our initial business
combination or (ii) a shareholder vote to approve an amendment to our Articles (A) to modify the substance or timing of our obligation
to allow redemption in connection with our initial business combination or to redeem 100% of our Public Shares if we do not complete our
initial business combination prior to the Termination Date (currently, the 24-month anniversary of the closing of the IPO) or (B) with
respect to any other provision relating to shareholders’ rights or pre-initial business combination activity. None of our Sponsor,
directors or officers are entitled to redeem the Founder Shares held by them.
On the record date, our Sponsor beneficially owned
and was entitled to vote 3,162,500, or approximately 58.3%, of the Company’s 5,422,851 issued and outstanding ordinary shares.
Subject to applicable securities laws, the Sponsor
or the Company’s executive officers, directors or any of their respective affiliates may purchase Public Shares in privately negotiated
transactions or in the open market either prior to or following the completion of an initial business combination, although they are under
no obligation to do so. Such a purchase may include a contractual acknowledgement that such shareholder, although still the record holder
of our shares, is no longer the beneficial owner thereof and therefore agrees not to exercise its redemption rights. In the event that
the Sponsor or the Company’s executive officers, directors purchase Public Shares in privately negotiated transactions from public
shareholders who have already elected to exercise their redemption rights, such selling shareholders would be required to revoke their
prior elections to redeem their shares.
To the extent any such purchases by the Sponsor
or the Company’s executive officers, directors or any of their respective affiliates are made in situations in which the tender
offer rules restrictions on purchases apply, we will disclose in a Current Report on Form 8-K prior to the Meeting the following: (i)
the number of Public Shares purchased outside of the redemption offer, along with the purchase price(s) for such Public Shares; (ii) the
purpose of any such purchases; (iii) the impact, if any, of the purchases on the likelihood that the Articles Extension Proposal and the
Trust Extension Proposal will be approved; (iv) the identities of the securityholders who sold to the Sponsor or the Company’s executive
officers, directors or any of their respective affiliates (if not purchased on the open market) or the nature of the securityholders (e.g.,
five percent security holders) who sold such Public Shares; and (v) the number of Public Shares for which we have received redemption
requests pursuant to its redemption offer.
The purpose of such share purchases and other transactions
would be to increase the likelihood of approving the Articles Extension Proposal and the Trust Extension Proposal, or otherwise limit
the number of Public Shares electing to redeem.
If such transactions are effected, the consequence
could be to cause the Articles Extension and Trust Extension to be effectuated in circumstances where such effectuation could not otherwise
occur. In addition, if such purchases are made, the public “float” of our securities and the number of beneficial holders
of our securities may be reduced, possibly making it difficult to maintain the quotation, listing or trading of our securities on a national
securities exchange.
We hereby represent that any of our securities
purchased by the Sponsor or the Company’s executive officers, directors or any of their respective affiliates in situations in which
the tender offer rules restrictions on purchases would apply would not be voted in favor of approving the Articles Amendment Proposal
or the Trust Amendment Proposal.
Does the Board recommend voting for the approval
of the proposals?
Yes. After careful consideration of the terms and
conditions of the proposals, the Board has determined that the proposals are in the best interests of the Company and its shareholders.
The Board unanimously recommends that shareholders vote “FOR” the proposals.
What vote is required to adopt the Articles
Extension Proposal, the Trust Extension Proposal and the Adjournment Proposal?
Approval of the Articles Extension Proposal will
require a special resolution as a matter of Cayman Islands law, being a resolution passed by a majority of at least two-thirds of Cactus’
shareholders as, being entitled to do so, vote in person or by proxy at the Meeting, and includes a unanimous written resolution.
Under the Trust Agreement, approval of the Trust
Extension Proposal will require the affirmative vote of holders of 65% of the Company’s outstanding ordinary shares entitled to
vote thereon.
The Adjournment Proposal requires an ordinary resolution
as a matter of Cayman Islands law, being a resolution passed by a simple majority of the shareholders of Cactus as, being entitled to
do so, vote in person or by proxy at the Meeting, and includes a unanimous written resolution.
When would the Board abandon the Articles
Extension and the Trust Extension?
Our Board will abandon the Articles Extension and
the Trust Extension if our shareholders do not approve the Articles Extension Proposal and the Trust Extension Proposal. If we abandon
the Articles Extension, public shareholders will not have their Public Shares redeemed in connection with the Meeting.
What happens if I sell my ordinary shares
or units of the Company before the Meeting?
The October 19, 2023 record date is earlier than
the date of the Meeting. If you transfer your Public Shares after the record date but before the Meeting, unless the transferee obtains
from you a proxy to vote those shares, you will retain your right to vote at the Meeting. If you transfer your Public Shares prior to
the record date, you will have no right to vote those shares at the Meeting.
Will the Company seek any further extensions
to the deadline for it to liquidate the Trust Account?
Other than the Articles Extension, as described
in this proxy statement, the Company does not currently anticipate seeking any further extension to the deadline for consummating an initial
business combination or returning the remaining proceeds in the Trust Account upon the expiration of the business combination period.
What happens if the Articles Extension Proposal
and Trust Extension Proposal are not approved?
If the Articles Extension Proposal and Trust Extension
Proposal are not approved, we will have not consummated the initial business combination by November 2, 2023 and will therefore be required
to liquidate and dissolve our Trust Account by returning the then-remaining funds in such account to the public shareholders.
The Company’s Sponsor has waived its rights
to participate in any liquidation distribution with respect to its Founder Shares. There will be no distribution from the Trust Account
with respect to the Company’s Public Warrants or Private Warrants, all of which will expire worthless in the event we wind up.
Additionally, redemption payments for Redemptions
in connection with this Meeting will only be made if the Articles Extension Proposal and the Trust Extension Proposal receive the requisite
shareholder approvals and we determine to implement the Articles Extension and Trust Extension.
If the Articles Extension Proposal and Trust
Extension Proposal are approved, what happens next?
Subject to the approval of (1) the Articles Extension
Proposal by a special resolution being a resolution passed by a majority of at least two-thirds of Cactus’ shareholders as, being
entitled to do so, vote in person or by proxy at the Meeting, and (2) the Trust Extension Proposal by the affirmative vote of holders
of 65% of the Company’s outstanding ordinary shares entitled to vote thereon, the Company will file an amendment to the Articles
with the Registrar of Companies of the Cayman Islands in the form of Annex A hereto, and the Trust Extension in the form of Annex
B hereto will become effective. The Company will remain a reporting company under the Securities Exchange Act of 1934, as amended,
and its Public Units, Public Shares and Public Warrants will remain publicly traded. Unless and until the Board determines to wind up
the operations of the Company, the Company will continue to work to consummate an initial business combination prior to the expiration
of the business combination period, as extended until the Articles Extension Date.
The Articles Extension Proposal and the Trust Extension
Proposal must both be approved for the Articles Extension to be implemented.
Would I still be able to exercise my redemption
rights if I vote against the Articles Extension Proposal and/or the Trust Extension Proposal?
Yes, assuming you are a shareholder as of the record
date and continue to hold your shares at the time of your Redemption (and subsequent redemption payment). However, redemption payments
for Redemptions in connection with this Meeting will only be made if the Articles Extension Proposal and the Trust Extension Proposal
receive the requisite shareholder approvals and we determine to implement the Articles Extension and Trust Extension. If you do not redeem
your Public Shares in connection with the Meeting, and you disagree with an initial business combination when it is proposed for shareholder
approval, you will retain your right to redeem your Public Shares upon consummation of an initial business combination, subject to any
limitations set forth in the Articles.
When and where is the Meeting?
The Meeting will be held at 9:00 a.m. Eastern Time/
3:00 p.m. local (Israel) time, on November 2, 2023, at Meitar Law Offices, 16 Abba Hillel Road, 10th
floor, Ramat Gan, Israel 5250608, and via live webcast, or at such other time, on such other date and at such other place at which the
Meeting may be adjourned or postponed. The Company’s shareholders may attend and vote at the Meeting in person and/or by visiting
https://www.cstproxy.com/cactusac/ext2023 and entering the control number found on their proxy card. You may also attend the Meeting
telephonically by dialing 1-800-450-7155 (toll-free within the United States and Canada) or +1 857-999-9155 (outside of the United States
and Canada, standard rates apply). The passcode for telephone access is 0318649#. The hybrid format for the Meeting will enable full and
equal participation by all our shareholders from any place in the world at little to no cost.
How do I attend the Meeting virtually?
Registered shareholders received a proxy card from
Continental. The proxy card contains instructions on how to attend the Meeting including the URL address, along with a control number
that you will need for access. If you do not have your control number, contact Continental by phone at: (917) 262-2373, or email proxy@continentalstock.com.
You can pre-register to attend the virtual meeting
starting on October 27, 2023 at 9:00 a.m. Eastern Time (four (4) business days prior to the meeting date). Enter the URL address https://www.cstproxy.com/cactusac/ext2023
into your browser, enter your control number, name and email address. Once you pre-register you will be able to vote. At the start of
the Meeting you will need to log in again using your control number and will also be prompted to enter your control number if you vote
during the Meeting.
Beneficial holders, who own their shares through
a bank or broker, will need to contact Continental to receive a control number. If you plan to vote at the Meeting, you will need to have
a legal proxy from your bank or broker. If you would like to attend the Meeting virtually and not vote, Continental will issue you a guest
control number after you provide proof of beneficial ownership. Either way, you must contact Continental for specific instructions on
how to receive the control number, by phone at: (917) 262-2373, or email at proxy@continentalstock.com. Please allow up to seventy-two
(72) hours prior to the Meeting for processing your control number.
If you do not attend the Meeting in person and
do not have internet capabilities, you can listen only to the Meeting by 1-800-450-7155 (toll-free), within the U.S. and Canada, or +1
857-999-9155 (standard rates apply) outside the U.S. and Canada; when prompted enter the pin number 0318649#. This is listen only; you
will not be able to vote or enter questions during the Meeting.
How do I vote?
If you are a holder of record of Company ordinary
shares, you may vote in person or virtually at the Meeting or by submitting a proxy for the Meeting. Whether or not you plan to attend
the Meeting in person or virtually, the Company urges you to vote by proxy to ensure your vote is counted. You may submit your proxy by
(i) completing, signing, dating and returning the enclosed proxy card in the accompanying pre-addressed postage paid envelope or (ii)
voting online at https://www.cstproxy.com/cactusac/ext2023. You may still attend the Meeting and vote virtually or in person if
you have already voted by proxy.
If your Company 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 Meeting. However, since you are not the shareholder of record, you may not vote your shares in person
or virtually at the Meeting unless you first submit a legal proxy to Continental, as described above in “How do I attend
the Meeting virtually?”
How do I change my vote?
If you are a holder of record of Company ordinary
shares, you can revoke your proxy at any time before the Meeting by (i) delivering a later-dated, signed proxy card prior to the date
of the Meeting, (ii) granting a subsequent proxy online or (iii) voting in person or virtually at the Meeting. Attendance at the Meeting
alone will not change your vote.
If your Company ordinary shares are held in “street
name” by a broker or other agent and you wish to revoke your proxy, you should follow the instructions provided by your broker or
agent.
How are votes counted?
Votes will be counted by the inspector of election
appointed for the Meeting, who will separately count “FOR” and “AGAINST” votes, abstentions and broker non-votes
for each proposal. Approval of the Articles Extension Proposal requires a special resolution as a matter of Cayman Islands law being a
resolution passed by a majority of at least two-thirds of Cactus’ shareholders as, being entitled to do so, vote in person or by
proxy at the Meeting, and includes a unanimous resolution. Approval of the Trust Extension Proposal requires the affirmative vote of the
holders of at least 65% of the outstanding Company ordinary shares entitled to vote thereon. Lastly, the Adjournment Proposal requires
an ordinary resolution as a matter of Cayman Islands law, being a resolution passed by a simple majority of shareholders of Cactus as,
being entitled to do so, vote in person or by proxy at the Meeting, and includes a unanimous written resolution.
If you do not vote, your action will have the effect
of a vote against the Trust Extension Proposal and, if a valid quorum is otherwise established, no effect on the Articles Extension Proposal
or the Adjournment Proposal. Likewise, abstentions, broker non-votes and withheld votes (as applicable) will have the effect of a vote
against the Trust Extension Proposal and no effect on the Articles Extension Proposal or the Adjournment Proposal.
If my shares are held in “street name,”
will my broker automatically vote them for me?
Generally, if shares are held in street name, the
beneficial owner of the shares is entitled to give voting instructions to the broker, bank or other nominee holding the shares. If the
beneficial owner does not provide voting instructions, the broker, bank or other nominee can still vote the shares with respect to matters
that are considered to be “routine,” but cannot vote the shares with respect to “non-routine” matters. Under the
applicable rules, “non-routine” matters are matters that may substantially affect the rights or privileges of shareholders,
such as mergers, reverse stock splits, shareholder proposals, elections of directors (even if not contested), and executive compensation,
including advisory shareholder votes on executive compensation and on the frequency of shareholder votes on executive compensation. All
of the proposals to be presented at the Meeting are considered to be “non-routine,” and brokers, banks or other nominees will
not have discretionary voting power with respect to such proposals. Thus, your broker can vote your shares with respect to such “non-discretionary
items” only if you provide instructions on how to vote. You should instruct your broker to vote your shares, and your broker can
tell you how to provide these instructions.
What is a quorum requirement?
A quorum of shareholders is necessary to hold a
valid meeting. The holders of a majority of the shares in the capital of the Company being individuals present in person or by proxy or
if a corporation or other non-natural person by its duly authorized representative or proxy shall be a quorum.
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 virtually at
the Meeting. Abstentions will be counted towards the quorum requirement. If there is no quorum within half an hour from the time appointed
for the Meeting, the Meeting will stand adjourned to such other time and/or place as our Board may determine. If at the adjourned meeting
a quorum is not present within half an hour from the time appointed for the Meeting to commence, the shareholders present shall be a quorum.
Who can vote at the Meeting?
Only holders of record of the Company’s ordinary
shares at the close of business on October 19, 2023 are entitled to have their vote counted at the Meeting and any adjournments or postponements
thereof. On that record date, 2,260,351 Class A ordinary shares and 3,162,500 Class B ordinary shares were outstanding and entitled to
vote.
See above in “How do I vote?”
for information on how to vote.
What interests do the Company’s directors
and executive officers have in the approval of the proposals?
The Company’s directors and executive officers
have interests in the proposals that may be different from, or in addition to, your interests as a shareholder. See “The Meeting —
Interests of Our Sponsor, Directors and Officers.”
What happens to the Company’s warrants
if the Articles Extension Proposal or Trust Extension Proposal is not approved?
If the Articles Extension Proposal or Trust Extension
Proposal is not approved and we consequently will have not consummated a business combination by the Current Termination Date of November
2, 2023, we will be required to liquidate and dissolve our Trust Account by returning the remaining funds in such account to the public
shareholders. In that case, the Public Warrants as well as the Private Warrants will be worthless.
What happens to the Company’s warrants
if both the Articles Extension Proposal and Trust Extension Proposal are approved?
If both the Articles Extension Proposal and Trust
Extension Proposal are approved, the Company will be able to continue its efforts to consummate an initial business combination on or
prior to the Articles Extension Date and will retain the blank check company restrictions currently applicable to it, and the Public Warrants
and Private Warrants will remain outstanding in accordance with their terms.
How do I redeem my Public Shares?
If the Articles Extension and the Trust Extension
are implemented, each public shareholder may redeem all or a portion of his, her or its 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 on the Trust Account deposits (which
interest shall be net of taxes payable), divided by the number of then outstanding Public Shares. You will also be able to redeem your
Public Shares in connection with any shareholder vote to approve a business combination.
To demand a Redemption, you must ensure your bank
or broker complies with the requirements identified herein, including submitting a written request that your shares be redeemed for cash
to the transfer agent and delivering your shares to the transfer agent prior to 5:00 p.m., Eastern Time on October 31, 2023. You will
only be entitled to receive cash in connection with a Redemption of your Public Shares if you continue to hold them until the effective
date of the Articles Extension, Trust Extension, and Redemption.
Pursuant to our Articles, a public shareholder
may request that the Company redeem all or a portion of such public shareholder’s Public Shares for cash if the Articles Extension
Proposal and Trust Extension Proposal are approved. You will be entitled to receive cash for any Public Shares to be redeemed only if
you:
(i) (a) hold Public Shares or (b) hold Public Shares
as part of Public Units and you elect to separate your units into the underlying Public Shares and Public Warrants prior to exercising
your redemption rights with respect to the Public Shares; and
(ii) prior to 5:00 p.m., Eastern Time, on October
31, 2023, (a) submit a written request to Continental, the Company’s transfer agent (the “transfer agent”), at
Continental Stock Transfer & Trust Company, 1 State Street, 30th Floor, New York,
New York 10004, Attn: SPAC Redemption Team), that the Company redeem your Public Shares for cash and (b) deliver your Public Shares to
the transfer agent, physically or electronically through The Depository Trust Company (“DTC”).
If a holder holds its Public Units in an account
at a brokerage firm or bank, it must notify its broker or bank that it elects to separate the units into the underlying Public Shares
and Public Warrants, or if a holder holds Public Units registered in its own name, the holder must contact the transfer agent directly
and instruct it to do so. Public shareholders may elect to redeem all or a portion of their Public Shares even if they vote for the
Articles Extension Proposal and Trust Extension Proposal.
Through DTC’s DWAC (Deposit/Withdrawal at
Custodian) 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 the Company’s 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 $100 and the broker would determine whether or not to pass
this cost on to the redeeming holder. It is the Company’s understanding that shareholders should generally allot at least two weeks
to obtain physical share certificates from the transfer agent. The Company does 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.
Share certificates that have not been tendered
or delivered in accordance with these procedures prior to the vote on the Articles Extension Proposal and Trust Extension Proposal will
not be redeemed for cash held in the Trust Account.
Any demand for redemption, once made, may be withdrawn
at any time until the deadline for exercising redemption requests and, thereafter, with our consent. Furthermore, if a holder of Public
Shares delivers the certificate representing such holder’s shares in connection with a Redemption and subsequently decides prior
to the applicable date not to elect to exercise such rights, such holder may request that the transfer agent return the share certificate
(physically or electronically).
In the event that a public shareholder tenders
its shares and decides prior to the deadline for exercising redemption requests that it does not want to redeem its shares, the shareholder
may withdraw the tender. Requests to withdraw a demand for Redemption after the deadline for exercising redemption requests can only be
completed if we consent. If you delivered your share certificates (if applicable) for Redemption to our transfer agent and decide prior
to the deadline for exercising redemption requests (or thereafter with our consent) not to redeem your shares, you may request that our
transfer agent return the share certificates or restore the book entry shares registered in your name. 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 Articles Extension Proposal
or Trust 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 Articles Extension Proposal or Trust Extension Proposal
was not approved. The Company anticipates that a public shareholder who tenders shares for redemption in connection with the vote to approve
the Articles Extension Proposal and the Trust Extension Proposal would receive payment of the redemption price for such shares soon after
the implementation of the Articles Extension and Trust Extension. The transfer agent will hold the share certificates of public shareholders
that make the election until such shares are redeemed for cash or returned to such shareholders.
If I am a Public Unit holder, can I exercise
redemption rights with respect to my units?
No. Holders of outstanding Public Units must separate
the underlying Public Shares and Public Warrants prior to exercising redemption rights with respect to the Public Shares.
If you hold Public Units registered in your own
name, you must deliver the certificate (physically or electronically) for such units to Continental, our transfer agent, with written
instructions to separate such units into Public Shares and Public Warrants. This must be completed far enough in advance to permit the
delivery of the Public Share certificates back to you so that you may then exercise your redemption rights upon the separation of the
units into Public Shares and Public Warrants. See “How do I redeem my Public Shares?” above.
What should I do if I receive more than one
set of voting materials?
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 Company shares.
Who is paying for this proxy solicitation?
The Company will pay for the entire cost of soliciting
proxies. In addition to our mailed proxy materials, our directors and executive 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. The Company may
also reimburse brokerage firms, banks and other agents for the cost of forwarding proxy materials to beneficial owners. While the payment
of these expenses will reduce the cash available to us to consummate a business combination if the Articles Extension is approved, we
do not expect such payments to have a material effect on our ability to consummate a business combination.
Where do I find the voting results of the
Meeting?
We will announce preliminary voting results at
the Meeting. The final voting results will be tallied by the inspector of election and published in a Current Report on Form 8-K, which
the Company is required to file with the SEC within four (4) business days following the Meeting.
Who can help answer my questions?
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 the Company’s Chief Financial Officer
at:
Cactus Acquisition Corp. 1 Ltd.
4B Cedar Brook Drive
Cranbury, NJ 08512
Attention: Stephen T. Wills
Telephone: 609-495-2222
Email: swills@cactusac1.com
You may also obtain additional information about
the Company from documents filed with the SEC by following the instructions in the section entitled “Where You Can Find More Information.”
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Some statements contained
in this proxy statement are forward-looking in nature. Our forward-looking statements include, but are not limited to, statements
regarding our or our management team’s expectations, hopes, beliefs, intentions or strategies regarding the future. In addition,
any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying
assumptions, are forward-looking statements. The words “anticipate,” “believe,” “continue,” “could,”
“estimate,” “expect,” “intends,” “may,” “might,” “plan,” “possible,”
“potential,” “predict,” “project,” “should,” “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. Forward-looking statements
in this proxy statement may include, for example, statements about:
| ● | our ability to complete our initial business combination
with a technology-based healthcare business that is domiciled or centered in Israel, that carries out all or a substantial portion of
its activities in Israel, or that has some other significant Israeli connection, or with any other potential target company business; |
| ● | our expectations around the performance of the prospective
target business or businesses; |
| ● | our potential ability to obtain additional financing to complete
our initial business combination; |
| ● | our success in retaining or recruiting, or changes required
in, our officers, key employees or directors following our initial business combination; |
| ● | our officers and directors allocating their time to other
businesses and potentially having conflicts of interest with our business or in approving our initial business combination, as a result
of which they would then receive expense reimbursements; |
| ● | our pool of prospective target, high-tech healthcare businesses
in Israel or other potential target company business; |
| ● | risks associated with acquiring a technology-oriented healthcare
business in Israel or other potential target company business; |
| ● | the ability of our officers and directors to generate a number
of potential acquisition opportunities; |
| ● | our public securities’ potential liquidity and trading; |
| ● | the lack of a market for our securities; |
| ● | the use of proceeds not held in the Trust Account or available
to us from interest income on the Trust Account balance; |
| ● | the Trust Account not being subject to claims of third parties;
or |
| ● | our expected financial performance following our initial
business combination. |
The forward-looking statements
contained in this proxy statement are based on our current expectations and beliefs concerning future developments and their potential
effects on us. There can be no assurance that future developments affecting us will be those that we have anticipated. These forward-looking statements
involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or
performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties
include, but are not limited to, those factors described in “Risk Factors” below. Should one or more of these risks or uncertainties
materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these
forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result
of new information, future events or otherwise, except as may be required under applicable securities laws.
RISK FACTORS
An investment in our securities involves a high
degree of risk. You should consider carefully all of the risks described below, together with the other factors discussed under “Item
1A. Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on March 30, 2023 (the
“2022 Annual Report”) and the factors described in other reports we file with the SEC. Our business, financial condition
or results of operations could also be materially and adversely affected by additional factors that apply to all companies generally,
as well as other risks that are not currently known to us or that we currently view to be immaterial. In any such case, the trading price
of our securities could decline and you may lose all or part of your original investment. While we attempt to mitigate known risks to
the extent we believe to be practicable and reasonable, we can provide no assurance, and we make no representation, that our mitigation
efforts will be successful. See “Cautionary Note Regarding Forward-Looking Statements.”
We may not be able to complete a business combination by the
expiration of the Articles Extension, even if the Articles Extension Proposal and the Trust Extension Proposal are approved by our shareholders,
in which case, to the extent we do not obtain any further extension, we would cease all operations except for the purpose of winding up
and we would redeem our Public Shares and liquidate and dissolve.
We may not be able to complete a business combination
by the expiration of the Articles Extension, even if the Articles Extension Proposal and the Trust Extension Proposal are approved by
our shareholders. Our ability to complete an initial business combination may be negatively impacted by general market conditions, volatility
in the capital and debt markets and the other risks described herein, in our 2022 Annual Report, and in other reports that we file with
the SEC. If we have not completed our initial business combination prior to the Articles Extension Date (assuming that it is approved
pursuant to the Articles Extension Proposal), and we do not seek any further extension, we will (1) cease all operations except for the
purpose of winding up; (2) 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 earned on
the funds in the Trust Account and not previously released to the Company (net of taxes payable and up to $100,000 of interest to pay
dissolution expenses), divided by the number of then issued and outstanding Public Shares, which redemption will completely extinguish
the public shareholders’ rights as shareholders (including the right to receive further liquidating distributions, if any); and
(3) as promptly as reasonably possible following such redemption, subject to the approval of the remaining shareholders and our Board,
liquidate and dissolve, subject in each case to our obligations under Cayman Island law to provide for claims of creditors and the requirements
of other applicable law. Additionally, 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.
Additionally, we are required to offer shareholders
the opportunity to redeem shares in connection with the Articles Extension Proposal and the Trust Extension Proposal and, if needed, any
additional extensions, and we will be required to offer shareholders redemption rights again in connection with any shareholder vote to
approve an initial business combination. Even if the Articles Extension Proposal and the Trust Extension Proposal are approved by our
shareholders, it is possible that redemptions will leave us with insufficient cash to consummate an initial business combination on commercially
acceptable terms, or at all. The fact that we will have separate redemption periods in connection with the Articles Extension and an initial
business combination vote could exacerbate these risks. Other than in connection with a redemption offer or liquidation, our shareholders
may be unable to recover their investment except through sales of our shares on the open market. The price of our shares may be volatile,
and there can be no assurance that shareholders will be able to dispose of our shares at favorable prices, or at all.
Additional extensions beyond the Articles Extension
may be required, which may subject us and our shareholders to additional risks and contingencies that would make it more challenging for
us to complete an initial business combination.
If we do not complete a business combination
by November 2, 2024 (assuming that the Articles Extension Proposal and the Trust Extension Proposal are approved), you may not benefit
from leaving your investment in the Trust Account and not electing to redeem your Public Shares.
Under the Articles (if
the Articles Extension Proposal is approved), if a business combination is not completed by November 2, 2024, which is three years from
the closing of our IPO, Cactus is to be liquidated and the proceeds in the Trust Account paid to Cactus’ public shareholders, subject
to any right of creditors in the Trust Account. In that case, any business combination agreement to which we may be party at the time
will be terminated. Any extension of that date requires approval by our shareholders and, in seeking such approval, would be required
to offer our shareholders the right to have their Public Shares redeemed. It is possible that all, or a significant percentage of the
public shareholders will exercise their redemption rights, even if the Sponsor agrees to make a payment to the Trust Account to discourage
redemption.
In addition to other
factors which would cause a public shareholder to redeem his, her or its Public Shares, the SEC’s approach that may treat a SPAC
such as ours as an investment company under the Investment Company Act may provide a reason for shareholders to exercise their
redemption right rather than extend the date by which a business combination must be completed. The funds in the Trust Account have, since
our IPO, been held only in U.S. government treasury obligations with a maturity of 185 days or less or in money market funds investing
solely in U.S. government treasury obligations and meeting certain conditions under Rule 2a-7 under the Investment Company
Act of 1940, as amended (the “Investment Company Act”). However, to mitigate the risk of our being deemed to be an
unregistered investment company (including under the subjective test of Section 3(a)(1)(A) of the Investment Company Act) and thus subject
to regulation under the Investment Company Act, we may instruct Continental, the trustee with respect to the Trust Account, to liquidate
the U.S. government treasury obligations or money market funds held in the Trust Account and thereafter to hold all funds in the Trust
Account in cash or in an interest-bearing demand deposit account until the earlier of the consummation of our initial business combination
or liquidation of the Company. Following such liquidation, we would likely receive minimal interest on the funds held in the Trust Account.
Any such decision to liquidate the securities held in the Trust Account and thereafter to hold all funds in the Trust Account in cash
or in an interest-bearing demand deposit account would thereby reduce the dollar amount our public shareholders would receive upon any
redemption or liquidation of Cactus. As of the date of this proxy statement, we have not yet made any such determination to liquidate
the securities held in the Trust Account.
We may not be able to complete an initial business combination
by the Articles Extension Date, even if the Articles Extension Proposal and the Trust Extension Proposal are approved by our shareholders,
in which case, to the extent we do not obtain any further extension, we would cease all operations except for the purpose of winding up
and we would redeem our Public Shares and liquidate and dissolve.
We may not be able to complete an initial business
combination by the Articles Extension Date, even if the Articles Extension Proposal and the Trust Extension Proposal are approved by our
shareholders at the Meeting. Our ability to complete an initial business combination may be negatively impacted by general market conditions,
volatility in the capital and debt markets and the other risks described herein, in our 2022 Annual Report and in other reports that we
file with the SEC. If we have not completed our initial business combination prior to the Articles Extension Date (assuming that the Articles
Extension is approved pursuant to the Articles Extension Proposal), and we do not seek any further extension, we will (1) cease all operations
except for the purpose of winding up; (2) 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
earned on the funds in the Trust Account and not previously released to the Company (net of taxes payable and up to $100,000 of interest
to pay dissolution expenses), divided by the number of then issued and outstanding Public Shares, which redemption will completely extinguish
the public shareholders’ rights as shareholders (including the right to receive further liquidating distributions, if any); and
(3) as promptly as reasonably possible following such redemption, subject to the approval of the remaining shareholders and our Board,
liquidate and dissolve, subject in each case to our obligations under Cayman Island law to provide for claims of creditors and the requirements
of other applicable law. Additionally, 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.
Additionally, we are required to offer shareholders
the opportunity to redeem shares in connection with the Articles Extension Proposal and the Trust Extension Proposal and, if needed, any
additional extensions, and we will be required to offer shareholders redemption rights again in connection with any shareholder vote to
approve an initial business combination. Even if the Articles Extension Proposal and the Trust Extension Proposal are approved by our
shareholders, it is possible that redemptions will leave us with insufficient cash to consummate an initial business combination on commercially
acceptable terms, or at all. The fact that we will have separate redemption periods in connection with the Articles Extension and an initial
business combination vote could exacerbate these risks. Other than in connection with a redemption offer or liquidation, our shareholders
may be unable to recover their investment except through sales of our shares on the open market. The price of our shares may be volatile,
and there can be no assurance that shareholders will be able to dispose of our shares at favorable prices, or at all.
Additional extensions beyond the Articles Extension
may be required, which may subject us and our shareholders to additional risks and contingencies that would make it more challenging for
us to complete an initial business combination.
Nasdaq may delist our securities from its exchange which could
limit investors’ ability to make transactions in its securities and subject our shares to additional trading restrictions.
On June 29, 2023, we
received a written notice from the Nasdaq Listing Qualifications Department indicating that we were not in compliance with Nasdaq Listing
Rule 5450(b)(2)(A) (the “MVLS Rule”), which requires that we have at least $50 million market value of listed securities
for continued listing on the Nasdaq Global Market. In accordance with Nasdaq Listing Rule 5810(c)(3)(C), we will have 180 calendar days,
or until December 26, 2023, in which to regain compliance with the MVLS Rule. If compliance is not achieved by December 26, 2023, we expect
that Nasdaq would provide written notification to us that our securities are subject to delisting. At that time, we could appeal the delisting
decision to a Nasdaq Hearings Panel.
Furthermore, on March
28, 2023, we received a written notice from the Nasdaq Listing Qualifications Department indicating that we were not in compliance with
Nasdaq Listing Rule 5450(a)(2), which requires us to have at least 400 total holders for continued listing on the Nasdaq Global Market
(the “Minimum Holders Rule”). The Notice was only a notification of deficiency, not of imminent delisting, and had
no current effect on the listing or trading of our securities on the Nasdaq Global Market. The Notice stated that we had 45 calendar days,
or until October 23, 2023, to submit a plan to regain compliance with the Minimum Holders Rule. We intend to submit a plan to regain compliance
with the Minimum Holders Rule within the required timeframe, but we cannot assure you that Nasdaq will accept that compliance plan. If
Nasdaq does not accept our plan, we will have the opportunity to appeal the decision in front of a Nasdaq Hearings Panel. If Nasdaq
accepts our plan, it could grant us an extension of up to 180 calendar days from the date of the non-compliance notice to evidence compliance
with the Minimum Holders Rule.
We cannot assure you
that we will be able to regain compliance with the MVLS Rule and Minimum Holders Rule. Our failure to meet these requirements would result
in our securities being delisted from Nasdaq.
We and the holders of
our securities could be materially adversely impacted if our securities are delisted from Nasdaq due to non-compliance with either of
the above rules. In particular:
| ● | the price of our securities will likely decrease as a result
of the loss of market efficiencies associated with Nasdaq; |
| ● | holders may be unable to sell or purchase our securities when
they wish to do so; |
| ● | we may become subject to shareholder litigation; |
| ● | we may lose the interest of institutional investors in our
securities; |
| ● | we may lose media and analyst coverage; and |
| ● | we would likely lose any active trading market for our securities,
as our securities may then only be traded on one of the over-the-counter markets, if at all. |
SEC rules affecting special purpose acquisition companies may
adversely affect our ability to negotiate and complete our initial business combination. In particular, certain of the procedures that
we, a potential initial business combination target, or others may determine to undertake in connection with our initial business combination
may increase our costs and the time needed to complete our initial business combination and may constrain the circumstances under which
we could complete an initial business combination. We may be forced to liquidate the U.S. government treasury obligations or money market
funds held in the Trust Account or liquidate and dissolve the Company at an earlier time than we might otherwise choose.
Our consummation of an initial business combination
may be contingent upon our ability to comply with certain laws, regulations, interpretations and applications, and the post-business combination
company may be subject to additional laws, regulations, interpretations and applications. Compliance with the foregoing may be difficult,
time consuming and costly. Laws and regulations and their interpretation and application may also change from time to time, and those
changes could have a material adverse effect on our ability to complete an initial business combination.
In particular, to the extent that Cactus, as
a SPAC, is deemed to be subject to regulation under the Investment Company Act, or, in order to avoid that regulation, we limit our
duration, alter the assets that we hold, change our business purpose, or limit our activities, that may increase the costs of and the
time needed to complete our initial business combination, and may constrain the circumstances under which we could complete our initial
business combination. Because we are more at risk of being considered an unregistered investment company if the funds in the Trust Account
are held in short-term U.S. government treasury obligations or in money market funds for a longer period of time, we are more likely to
liquidate those investments sooner than desired and thereafter hold all funds in the Trust Account in an interest-bearing demand deposit
account. That may also lead to our liquidating and dissolving the Company at an earlier time than we might otherwise choose.
If we are deemed to be an investment company for purposes of
the Investment Company Act, we would be required to institute burdensome compliance requirements and our activities would be severely
restricted. As a result, in such circumstances, unless we are able to modify our activities so that we would not be deemed an investment
company, we may abandon our efforts to complete an initial business combination and instead liquidate and dissolve the Company.
There is currently uncertainty concerning the
applicability of the Investment Company Act to a SPAC, including a company like ours. It is possible that a claim could be made
that we have been operating as an unregistered investment company. The longer that the funds in the Trust Account are invested exclusively
in short-term U.S. government treasury obligations or in money market funds, the greater the risk that we may be considered an unregistered
investment company.
If we are deemed to be an investment company
under the Investment Company Act, our activities would be severely restricted. In addition, we would be subject to burdensome compliance
requirements. We do not believe that our principal activities will subject us to regulation as an investment company under the Investment
Company Act. However, if we are deemed to be an investment company and subject to compliance with and regulation under the Investment
Company Act, we would be subject to additional regulatory burdens and expenses for which we have not allotted funds. As a result, unless
we are able to modify our activities so that we would not be deemed an investment company, we may abandon our efforts to complete an initial
business combination and instead liquidate and dissolve the Company. If we are required to liquidate and dissolve, our shareholders would
not be able to realize the benefits of owning stock in a successor operating business, including the potential appreciation in the value
of our shares and warrants following such a transaction, and our warrants would expire worthless.
We
may be deemed a “foreign person” and therefore may not be able to complete our business combination because such transaction
may be subject to regulatory review and approval requirements, including pursuant to foreign investment regulations and review by governmental
entities such as the Committee on Foreign Investment in the United States, or may be ultimately prohibited.
Our Sponsor,
Cactus Healthcare Management LP, is controlled by non-U.S. persons. While we are focusing our search on technology-based healthcare businesses
that are domiciled in Israel, that carry out all or a substantial portion of their activities in Israel, or that have some other significant
Israeli connection, we may pursue a business combination target in any business or industry and across any geographical region, including
in the United States. Certain transactions in the United States are subject to specific rules or regulations that may limit, prohibit,
or create additional requirements with respect to foreign ownership of a U.S. company. In particular, our initial business combination,
if effected with a U.S. target company, may be subject to regulatory review and approval requirements by governmental entities, or ultimately
prohibited. For example, the Committee on Foreign Investment in the United States (“CFIUS”) has authority to review
certain direct or indirect foreign investments in U.S. companies. Among other things, CFIUS is empowered to require certain foreign investors
to make mandatory filings, to charge filing fees related to such filings, and to self-initiate national security reviews of foreign
direct and indirect investments in U.S. companies if the parties to that investment choose not to file voluntarily. If CFIUS determines
that an investment threatens national security, CFIUS has the power to impose restrictions on the investment or recommend that the President
of the United States prohibit it or order divestment. Whether CFIUS has jurisdiction to review an acquisition or investment transaction
depends on, among other factors, the nature and structure of the transaction, the nationality of the parties, the level of beneficial
ownership interest and the nature of any information or governance rights involved.
As such,
a business combination with a U.S. business or foreign business with U.S. operations that we may wish to pursue may be subject to CFIUS
review. If a particular proposed business combination with a U.S. business falls within CFIUS’s jurisdiction, we may determine that
we are required to make a mandatory filing or that we will submit to CFIUS review on a voluntary basis, or to proceed with the transaction
without submitting to CFIUS and risk CFIUS intervention, before or after closing the transaction. CFIUS may decide to delay or recommend
that the President of the United States block our proposed initial business combination, require conditions with respect to such initial
business combination or recommend that the President of the United States order us to divest all or a portion of the U.S. target business
of our business combination that we acquired without first obtaining CFIUS approval, which may limit the attractiveness of, or delay or
prevent us from pursuing, certain target companies that we believe would otherwise be beneficial to us and our shareholders. In addition,
certain types of U.S. businesses may be subject to rules or regulations that limit or impose requirements with respect to foreign ownership.
If CFIUS
determines it has jurisdiction, CFIUS may decide to recommend a block or delay our business combination, or require conditions with respect
to it, which may delay or prevent us from consummating a potential transaction. It is unclear at this stage whether our potential business
combination transaction would fall within CFIUS’s jurisdiction, and if so, whether we would be required to make a mandatory filing
or determine to submit a voluntary notice to CFIUS.
The process
of government review, whether by CFIUS or otherwise, could be lengthy. Because we have only a limited amount time left to complete our
business combination, our failure to obtain any required approvals within the requisite time period may require us to liquidate. If we
are unable to consummate our initial business combination within the applicable time period required, including as a result of extended
regulatory review, we will, as promptly as reasonably possible, redeem the public shares for a pro rata portion of the funds held in the
trust account and as promptly as reasonably possible following such redemption, subject to the approval of our remaining shareholders
and our board of directors, liquidate and dissolve, subject in each case to our obligations under Cayman law to provide for claims of
creditors and the requirements of other applicable law. In such event, our shareholders will miss the opportunity to benefit from an investment
in a target company and the chance of realizing future gains through any price appreciation in the combined company. Additionally, our
warrants will become worthless. As a result, the pool of potential targets with which we could complete a business combination may be
limited and we may be adversely affected in terms of competing with other special purpose acquisition companies which do not have similar
ties to non-U.S. persons.
A 1% U.S. federal excise tax may be imposed
on us in connection with our redemptions of shares, or in connection with a business combination or other shareholder vote pursuant to
which shareholders would have a right to submit their shares for redemption.
Pursuant to the Inflation Reduction Act of 2022
(the “IRA”), commencing in 2023, a 1% U.S. federal excise tax is imposed on certain repurchases (including redemptions)
of stock by publicly traded domestic (i.e., U.S.) corporations and certain domestic subsidiaries of publicly traded foreign corporations
and their “Specified Affiliates” as the term is defined in the Notice (as defined below). The excise tax is imposed on the
repurchasing corporation and not on its shareholders. The amount of the excise tax is equal to 1% of the “fair market value”,
within the meaning of these rules, of the shares repurchased at the time of the repurchase. However, for purposes of calculating the excise
tax, repurchasing corporations are permitted to net the “fair market value” of certain new share issuances against the “fair
market value” of share repurchases during the same taxable year. The U.S. Department of the Treasury (the “Treasury Department”)
has authority to promulgate regulations and provide other guidance regarding the excise tax. The Treasury Department and the Internal
Revenue Service (the “IRS”) have recently issued Notice 2023-2, indicating the intention to propose regulations
on the excise tax and issuing certain interim rules on which taxpayers may rely (the “Notice”). Under the interim rules,
distributions in qualifying complete liquidations are exempt from the excise tax. In addition, the Notice provides that no distribution
in a taxable year by a corporation that completely liquidates in a qualifying liquidation during such taxable year is subject to the excise
tax.
If, as a result of the Articles Extension Proposal
and the Trust Extension Proposal, the amendment to the Articles extending our deadline for consummating an initial business combination
is approved, our shareholders will have the right to require us to redeem their Public Shares. The excise tax may apply to such redemption
and any other repurchase of our shares (including repurchases in connection with a business combination and/or our liquidation). The extent
to which we would be subject to the excise tax in a taxable year would depend on a number of factors, including: (i) the “fair market
value” of the redemptions and repurchases during such taxable year, (ii) the nature and amount of any “PIPE” or other
equity issuances during such taxable year (including in connection with a business combination), (iii) if we liquidate in such taxable
year and whether the liquidation qualifies for exemption, (iv) the structuring of any business combination, and (v) the content of any
proposed or final regulations and other guidance from the Treasury Department or the IRS. In addition, because the excise tax would be
payable by us and not by the redeeming holders, the mechanics of any required payment of the excise tax remains to be determined. If we
liquidate, it is not clear that our liquidation will qualify for exemption from the excise tax under the Notice because it will depend
on the particular facts and circumstances of the liquidation. Any excise tax payable by us may cause a reduction in the cash available
to us to complete a business combination, could affect our ability to complete a business combination, and may cause a reduction in amounts
available for redemptions.
BACKGROUND
We are a blank check company formed on April 19,
2021 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.
The business combination period under our Articles,
during which we must complete an initial business combination or else liquidate our Company upon its expiration, currently concludes on
November 2, 2023 (which constitutes the 24-month anniversary of the consummation of our IPO). There will not be sufficient time before
that date to complete an initial business combination. Therefore, in order to provide us more time to consummate an initial business combination,
we are proposing that our shareholders approve at the Meeting the extension of the business combination period by up to an additional
12 months, until November 2, 2024. In order to effect that extension, our Board is submitting the Articles Extension Proposal and the
Trust Extension Proposal (each, as described below) to our shareholders for approval at the Meeting.
Following redemptions
of Public Shares that were completed in connection with our Initial Extension Meeting held on April 20, 2023 and our Conversion Amendment
Meeting held on May 30, 2023, as of the date of this proxy statement, approximately $24.7
million, consisting of proceeds from our IPO and from the simultaneous sale of Private Warrants to our Sponsor in a private placement,
and interest income, remains in our Trust Account in the United States maintained by Continental, acting as trustee. As of the current
time, there are 5,422,851 Cactus ordinary shares that remain outstanding, consisting of (i) 2,260,351 Cactus Class A ordinary shares,
all of which are Public Shares, and (ii) 3,162,500 Class B ordinary shares (i.e., Founder Shares).
If we do not complete our initial business combination
by the extended conclusion of our business combination period (assuming that the Articles Extension Proposal and the Trust Extension Proposal
are approved at the Meeting), the investments being held in the Trust Account will be liquidated and the funds received from the liquidation
will be distributed on a pro rata basis to the holders of the Public Shares.
The proceeds held in
the Trust Account may only be invested in United States “government securities” within the meaning of Section 2(a)(16) of
the Investment Company Act, having a maturity of 185 days or less or in money market funds meeting certain conditions under Rule 2a-7 promulgated
under the Investment Company Act which invest only in direct U.S. government treasury obligations. We expect that the proceeds
held in the Trust Account will continue to be invested in United States government treasury bills with a maturity of 185 days or less,
or in money market funds investing solely in U.S. Treasuries and meeting certain conditions under Rule 2a-7 under the Investment
Company Act, until the earlier of: (i) the completion of our initial business combination, or (ii) the liquidation, and distribution of
the proceeds from, the Trust Account. We may, however, decide in the future to liquidate our current investments in the Trust Account
and transfer the funds in the Trust Account into an interest-bearing demand deposit account in order to avoid the risk of being deemed
an unregistered “investment company” under the Investment Company Act. Pursuant to the Trust Agreement, the trustee is
not permitted to invest in any securities or assets other than the foregoing. The Trust Account is intended as a holding place for funds
pending the earliest to occur of: (i) the completion of our initial business combination; (ii) the redemption of any Public Shares properly
submitted in connection with a shareholder vote to amend our Articles (A) to modify the substance or timing of our obligation to allow
redemption in connection with our initial business combination or to redeem 100% of our Public Shares if we do not complete our initial
business combination within 36 months from the closing of the IPO (assuming the approval of the Articles Extension Proposal and the Trust
Extension Proposal at the Meeting), or (B) with respect to any other provision relating to shareholders’ rights or pre-initial business
combination activity; or (iii) absent an initial business combination within 36 months from the closing of the IPO (assuming the approval
of the Articles Extension Proposal and the Trust Extension Proposal at the Meeting), our return of the funds held in the Trust Account
to our public shareholders as part of our redemption of the Public Shares.
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 Private Warrants that may become exercisable in the future and the possibility of future compensatory
arrangements. See the section entitled “The Meeting — Interests of our Sponsor, Directors and Officers.”
You are not being asked
to vote on any business combination at this time. If the Articles Extension and Trust Extension are implemented and you do not elect to
redeem your Public Shares, provided that you are a shareholder on the record date for a meeting to consider an initial business combination,
you will be entitled to vote on an initial business combination when it is submitted to shareholders and will retain the right to redeem
your Public Shares for cash in the event that an initial business combination is approved and completed or we have not consummated a business
combination by the Articles Extension Date, subject to the terms of the Articles.
THE MEETING
Date, Time and Place of the Meeting
The enclosed proxy is solicited by the Board in
connection with an extraordinary general meeting to be held on November 2, 2023 at 9:00 a.m. Eastern Time/ 3:00 p.m. local (Israel) time
at Meitar Law Offices, 16 Abba Hillel Road, 10th floor, Ramat Gan, Israel 5250608, and
via live webcast, or at such other time, on such other date and at such other place at which the Meeting may be adjourned or postponed.
The Company will be holding the Meeting via live webcast. You will be able to attend the Meeting, vote and submit your questions online
before the Meeting by visiting https://www.cstproxy.com/cactusac/ext2023.
Purpose of the Meeting
At the Meeting, you will be
asked to consider and vote upon the following matters:
| 1. | Proposal No. 1 - A proposal to approve,
by way of special resolution, the amendment to the Articles to extend the Termination Date by which Cactus has to consummate a business
combination from November 2, 2023 to November 2, 2024 (the “Articles Extension Proposal”). A copy of the proposed
amendment is set forth in Annex A to this proxy statement; |
| 2. | Proposal No. 2 - A proposal to amend
the Trust Agreement, by and between the Company and Continental, to extend the date by which the Company would be required to consummate
a business combination from November 2, 2023 to November 2, 2024, or such earlier date as may be determined by our Board in its sole
discretion (the “Trust Extension Proposal”); |
| 3. | Proposal No. 3 - A proposal to approve, by way of ordinary resolution, the adjournment of the
Meeting to a later time, if necessary or desirable, to permit further solicitation and vote of proxies if, based upon the tabulated
vote at the time of the Meeting, there are insufficient votes for, or otherwise in connection with, the approval of either of the
foregoing proposals (the “Adjournment Proposal”). |
The Adjournment Proposal will only be presented
at the Meeting if there are not sufficient votes to approve the Articles Extension Proposal or the Trust Extension Proposal. The Articles
Extension Proposal and the Trust Extension Proposal are essential to the overall implementation of the Board’s plan to extend the
date by which the Company has to complete a business combination.
You are not being asked to vote on any business
combination transaction at this time. If the Articles Extension and Trust Extension proposals are implemented and you do not elect to
redeem your Public Shares now, you will retain the right to vote for an initial business combination when it is submitted to shareholders
and the right to redeem your Public Shares for cash in the event our initial business combination is approved and completed or if the
Company has not consummated the initial business combination on or prior to the Articles Extension Date, subject to the terms of the Articles.
Public shareholders may elect to redeem their Public
Shares for their pro rata portion of the funds available in the Trust Account in connection with the Articles Extension Proposal regardless
of whether or how such public shareholders vote with respect to the Articles Extension Proposal. Additionally, redemption payments for
Redemptions in connection with this Meeting will only be made if the Articles Extension Proposal and the Trust Extension Proposal receive
the requisite shareholder approvals and we determine to implement the Articles Extension and Trust Extension. If the Articles Extension
Proposal and Trust Extension Proposal are approved by the requisite vote of shareholders, the remaining public shareholders will retain
their right to redeem their Public Shares for their pro rata portion of the funds available in the Trust Account when an initial business
combination is submitted to the shareholders. Furthermore, if the Articles Extension Proposal and the Trust Extension Proposal are approved
and the Articles Extension is implemented, then in accordance with the terms of Trust Agreement, as amended, the Trust Account will not
be liquidated (other than to effectuate the redemptions) until the earlier of (a) receipt by the Trustee of a termination letter (in accordance
with the terms of the Trust Agreement) or (b) the passage of the Articles Extension Date.
Any demand for redemption, once made, may be withdrawn
at any time until the deadline for exercising redemption requests and, thereafter, with our consent. Furthermore, if a holder of Public
Shares delivers the certificate representing such holder’s shares in connection with a Redemption and subsequently decides prior
to the applicable date not to elect to exercise such rights, such holder may request that the transfer agent return the certificate (physically
or electronically).
The withdrawal of funds from the Trust Account
in connection with a Redemption will reduce the amount held in the Trust Account following the redemption, and the amount remaining in
the Trust Account may be significantly reduced from the approximate $24.7 million that was in the Trust Account as of October 16, 2023.
If the Articles Extension Proposal or the Trust
Extension Proposal is not approved, we will not consummate an initial business combination by November 2, 2023, and in accordance with
our Articles, we will (1) cease all operations except for the purpose of winding up; (2) 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 earned on the funds in the Trust Account and not previously released to the Company
(net of taxes payable and up to $100,000 of interest to pay dissolution expenses), divided by the number of then issued and outstanding
public shares, which redemption will completely extinguish the public shareholders’ rights as shareholders (including the right
to receive further liquidating distributions, if any); and (3) as promptly as reasonably possible following such redemption, subject to
the approval of the remaining shareholders and our Board, liquidate and dissolve, subject in each case to our obligations under Cayman
Islands law to provide for claims of creditors and the requirements of other applicable law. In that case, all of our warrants will expire
worthless.
The approval of the Articles Extension Proposal
requires a special resolution as a matter of Cayman Islands law being a resolution passed by a majority of at least two-thirds of Cactus’
shareholders as, being entitled to do so, vote in person or by proxy at the Meeting, and includes a unanimous written resolution. Additionally,
the approval of the Trust Extension Proposal requires the affirmative vote of the holders of at least 65% of the outstanding Company ordinary
shares entitled to vote thereon. Approval of the Adjournment Proposal requires an ordinary resolution which is a resolution passed by
a simple majority of shareholders of Cactus as, being entitled to do so, vote in person or by proxy at the Meeting, and includes a unanimous
written resolution. Our Board will abandon and not implement the Articles Extension Proposal or the Trust Extension Proposal unless our
shareholders approve both the Articles Extension Proposal and the Trust Extension Proposal. Notwithstanding shareholder approval of the
Articles Extension Proposal and the Trust Extension Proposal, our Board will retain the right to abandon and not implement the Articles
Extension or Trust Extension at any time before the implementation thereof without any further action by our shareholders.
Only holders of record of our ordinary shares at
the close of business on October 19, 2023 are entitled to notice of the Meeting and to vote at the Meeting and any adjournments or postponements
of the Meeting.
After careful consideration of all relevant
factors, the Board has determined that each of the proposals are advisable and recommends that you vote or give instruction to vote “FOR”
such proposals.
Voting Rights and Revocation of Proxies
The record date with respect to this solicitation
is the close of business on October 19, 2023 and only shareholders of record at that time will be entitled to vote at the Meeting and
any adjournments or postponements thereof.
If you are a holder of record of Company ordinary
shares, you can revoke your proxy at any time before the final vote at the Meeting by (i) delivering a later-dated, signed proxy card
prior to the date of the Meeting, (ii) granting a subsequent proxy online or (iii) voting in person or virtually at the Meeting. Attendance
at the Meeting alone will not change your vote. If your ordinary shares are held in “street name” by a broker or other agent
and you wish to revoke your proxy, you should follow the instructions provided by your broker or agent.
We intend to release this proxy statement and the
enclosed proxy card to our shareholders on or about October 27, 2023.
Dissenters’ Right of Appraisal
Neither Cayman Islands law nor our Amended and
Restated Memorandum and Articles of Association provide for appraisal or other similar rights for dissenting shareholders in connection
with any of the proposals to be voted upon at the Meeting. Accordingly, our shareholders will have no right to dissent and obtain payment
for their shares.
Outstanding Shares and Quorum
The number of outstanding ordinary shares entitled
to vote at the Meeting is 5,422,851 shares, which consist of (i) 2,260,351 Class A ordinary shares, all of which are Public Shares, and
(ii) 3,162,500 Class B ordinary shares (Founder Shares). Each ordinary share is entitled to one vote. The presence of holders of a majority
of the shares being individuals present in person or by proxy or if a corporation or other non-natural person by its duly authorized representative
or proxy shall be a quorum. Abstentions will be counted as present for purposes of establishing a quorum. Broker non-votes will not be
counted for purposes of establishing a quorum. The Class A ordinary shares and Founder Shares are entitled to vote together as a single
class on the Articles Extension Proposal, the Trust Extension Proposal and the Adjournment Proposal.
Abstentions and Broker Non-Votes
An abstention occurs when a shareholder attends
a meeting, or is represented by proxy, but abstains from voting. At the Meeting, abstentions will be counted as present for purposes of
determining whether a quorum exists. Assuming that a quorum is present, a Cactus shareholder’s abstention will have no effect on
the outcome of the votes on the Articles Extension Proposal, the Trust Extension Proposal or the Adjournment Proposal.
Broker non-votes
are shares held in “street name” by brokers, banks and other nominees that are present or represented by proxy at a shareholder
meeting, but with respect to which the broker, bank or other nominee is not instructed by the beneficial owner of such shares how to vote
on a particular proposal and such broker, bank or other nominee does not have discretionary voting power on such proposal. Because, under
Nasdaq rules, brokers, banks and other nominees holding shares in “street name” do not have discretionary voting authority
with respect to any of the four proposals described in this proxy statement/prospectus, if a beneficial owner of ordinary shares held
in “street name” does not give voting instructions to the broker, bank or other nominee, then those shares will not be permitted
under Nasdaq rules to be voted at the meeting, and thus will not be counted as present or represented by proxy at the meeting. The votes
to approve the Articles Extension Proposal and the Adjournment Proposal are based on the votes actually cast by the shareholders present
or represented by proxy and entitled to vote at the Meeting. As a result, assuming that a quorum is present, if you fail to issue voting
instructions to your broker, bank or other nominee, it will have no effect on the outcome of the Articles Extension Proposal or the Adjournment
Proposal. The vote to approve the Trust Extension Proposal is based on the total ordinary shares outstanding. As a result, if you fail
to issue voting instructions to your broker, bank or other nominee, it will have the effect of a vote against the Trust Extension Proposal.
Required Votes for Each Proposal to Pass
Assuming the presence of a
quorum at the Meeting:
| Proposal |
|
Vote Required |
| Articles Extension |
|
A special resolution as a matter of Cayman Islands law, being a resolution passed by at least two-thirds of Cactus’ shareholders as, being entitled to do so, vote in person or by proxy at the Meeting, and includes a unanimous written resolution. |
| Trust Extension |
|
At least sixty-five percent (65%) of the outstanding ordinary shares entitled to vote thereon in person or by proxy at the Meeting. |
| Adjournment |
|
An ordinary resolution, being a resolution passed by a simple majority of the votes cast by shareholders of Cactus as being entitled to do so, vote in person or by proxy at the Meeting, and includes a unanimous written resolution. |
Abstentions will count as a vote against the Trust
Extension Proposal, but will have no effect on the remaining proposals, assuming a quorum is present. The failure to vote on the Trust
Extension Proposal will have the effect of a vote “AGAINST” such proposal, but will have no effect on the Articles Extension
Proposal or the Adjournment Proposal, assuming a quorum is present.
The chairman of the Meeting may adjourn the Meeting
whether or not there is a quorum, to reconvene at the same or some other place, and may adjourn the Meeting from time to time until a
quorum shall be present.
Under the Articles, if there is no quorum within
half an hour from the time appointed for the Meeting, the Meeting will stand adjourned to the same day in the next week at the same time
and/or place or to such other day, time and/or place as our Board may determine. If at the adjourned meeting a quorum is not present within
half an hour from the time appointed for the Meeting to commence, the shareholders present shall be a quorum. However, in any such
case in which we do not achieve a quorum at the initially-scheduled Meeting, we will not reconvene the Meeting, since the Termination
Date will occur before the Meeting is reconvened, and we will be required under the Articles to wind down the Company and liquidate the
Trust Account.
Voting Procedures
Each ordinary share that you own in your name entitles
you to one vote on each of the proposals for the Meeting. Your proxy card shows the number of ordinary shares that you own.
| ● | You can vote your shares in advance of the Meeting by completing,
signing, dating and returning the enclosed proxy card in the postage-paid envelope provided. If you hold your shares in “street
name” through a broker, bank or other nominee, you will need to follow the instructions provided to you by your broker, bank or
other nominee to ensure that your shares are represented and voted at the Meeting. If you vote by proxy card, your “proxy,”
whose name is listed on the proxy card, will vote your shares as you instruct on the proxy card. If you sign and return the proxy card
but do not give instructions on how to vote your shares, your ordinary shares will be voted as recommended by our Board. Our Board recommends
voting “FOR” the Articles Extension Proposal, “FOR” the Trust Extension Proposal, and “FOR” the Adjournment
Proposal. |
| ● | You can attend the Meeting and vote virtually even if you
have previously voted by submitting a proxy. However, if your ordinary shares are held in the name of your broker, bank or other nominee,
you must you first submit a legal proxy to Continental. Continental will then issue you a valid control number which will allow you to
vote at the Meeting. That is the only way we can be sure that the broker, bank or nominee has not already voted your Public Shares. |
Solicitation of Proxies
Your proxy is being solicited by our Board on the
proposals being presented to shareholders at the Meeting. In connection with that solicitation, you may contact our Chief Financial Officer
at:
Cactus Acquisition Corp. 1 Ltd.
4B Cedar Brook Drive
Cranbury, NJ 08512
Attention: Stephen T. Wills
Telephone: 609-495-2222
Email: swills@cactusac1.com
In addition to these mailed proxy materials, our
directors and officers may also solicit proxies in person, by telephone or by other means of communication. Some banks and brokers have
customers who beneficially own Public Shares listed of record in the names of nominees and we intend to request banks and brokers to solicit
such customers and will reimburse them for their reasonable out-of-pocket expenses for such solicitations.
Delivery of Proxy Materials to Shareholders
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 4B Cedar Brook Drive, Cranbury, NJ 08512, and via email to swills@cactusac1.com;
and |
| ● | if a bank, broker or other nominee holds the shares, the shareholder
should contact the bank, broker or other nominee directly. |
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 have interests that may be different from, or in addition to, your interests
as a shareholder. These interests include, among other things, the interests listed below:
| ● | the fact that the Sponsor holds an aggregate of 3,162,500
Class B Ordinary Shares, for which it paid $25,000, and 4,866,667 Private Warrants, for which it paid $7,300,000, all of which would
expire worthless if an initial business combination is not consummated, whereas such securities will have a significantly higher value
if an initial business combination is consummated, estimated at approximately $34,557,407, in the aggregate, based on the reported closing
price of $10.88 per Class A ordinary share and $0.0307 per warrant on Nasdaq on October 16, 2023; |
| ● | since November 2021, we pay the Sponsor a total of $10,000
per month for office space, utilities and secretarial and administrative support services; |
| ● | the fact that, unless the Company consummates the initial
business combination, the Sponsor and our directors and officers will not receive reimbursement for any out-of-pocket expenses incurred
by them on behalf of the Company (none of such expenses were incurred that had not been reimbursed as of December 31, 2022) to the extent
that such expenses exceed the amount of available proceeds not deposited in the Trust Account; |
| ● | the fact that the Sponsor has loaned to us $450,000 in working
capital loans, which are evidenced by a promissory note that we have issued to the Sponsor, which may not be repaid from funds in our
Trust Account and which would be repaid or converted into warrants at a conversion price of $1.50 per warrant only upon the closing of
a business combination transaction or upon our liquidation; in the case of such a liquidation, there is no guarantee of there being sufficient
funds for repayment of these loaned amounts; |
| ● | the fact that, if the Trust Account is liquidated, including
in the event we are unable to complete an initial business combination on or prior to the Articles Extension Date (assuming the approval
of the Articles Extension Proposal and Trust Amendment Proposal at the Meeting), the Sponsor has agreed to indemnify us to ensure that
the proceeds in the Trust Account are not reduced below $10.20 per Public Share, or such lesser per Public Share amount as is in the
Trust Account on the liquidation date, from the claims of prospective target businesses with which we have entered into a written letter
of intent, confidentiality or other similar agreement or business combination agreement or claims of any third party for services rendered
or products sold to us, but only if such a third party or target business has not executed a waiver of any and all rights to seek access
to the Trust Account; and |
| ● | the fact that none of our officers or directors has received
any cash compensation for services rendered to the Company, and all of the current members of our Board are expected to continue to serve
as directors at least through the date of the meeting to vote on an initial business combination and may even continue to serve following
an initial business combination and receive compensation thereafter. |
Redemption Rights
Pursuant to our current Articles, our public shareholders
will be provided with the opportunity to redeem their Public Shares upon the approval of the Articles Extension, at a per-share price,
payable in cash, equal to the aggregate amount then on deposit in the Trust Account, divided by the number of then outstanding Public
Shares. If your redemption request is properly made and the Articles Extension Proposal and Trust Extension Proposal are approved, these
shares will cease to be outstanding and will represent only the right to receive such amount. For illustrative purposes, based on funds
in the Trust Account of approximately $24.7 million on October 16, 2023, the estimated per share redemption price would have been approximately
$10.88. Public shareholders may elect to redeem their Public Shares regardless of whether or how they vote on the proposals at the Meeting,
but redemption payments for Redemptions in connection with this Meeting will only be made if the Articles Extension Proposal and the Trust
Extension Proposal receive the requisite shareholder approvals and we determine to implement the Articles Extension and Trust Extension.
In order to exercise your redemption rights, you
must:
| ● | submit a request in writing prior to 5:00 p.m., Eastern Time
on October 31, 2023 (two (2) business days before the Meeting) that we redeem your Public Shares for cash to Continental, our transfer
agent, at the following address: |
Continental Stock Transfer & Trust Company
1 State Street, 30th
Floor
New York, NY 10004
Attn: SPAC Redemption Team
E-mail: spacredemptions@continentalstock.com
and
| ● | deliver your Public Shares either physically or electronically
through DTC to our transfer agent at least two (2) business days before the Meeting. Shareholders seeking to exercise their redemption
rights and opting to deliver physical share certificates should allot sufficient time to obtain physical share certificates from the
transfer agent and time to effect delivery. It is our understanding that shareholders should generally allot at least two (2) weeks to
obtain physical share certificates from the transfer agent. However, we do not have any control over this process and it may take longer
than two (2) weeks. Shareholders who hold their shares in street name will have to coordinate with their broker, bank or other nominee
to have the shares certificated or delivered electronically. If you do not submit a written request and deliver your Public Shares as
described above, your shares will not be redeemed. |
Any demand for redemption, once made, may be withdrawn
at any time until the deadline for exercising redemption requests and, thereafter, with our consent. Furthermore, if a holder of public
shares delivers the share certificate representing such holder’s shares in connection with a Redemption and subsequently decides
prior to the applicable date not to elect to exercise such rights, such holder may request that the transfer agent return the share certificate
(physically or electronically). You may make such request by contacting our transfer agent at the email address or mailing address listed
above.
Prior to exercising redemption rights, shareholders
should verify the market price of our ordinary shares, as they may receive higher proceeds from the sale of their ordinary shares in the
public market than from exercising their redemption rights if the market price per share is higher than the redemption price. We cannot
assure you that you will be able to sell your ordinary 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 ordinary shares when you wish to sell your shares.
If you exercise your redemption rights and the
redemption is effectuated, your ordinary shares will cease to be outstanding and will only represent the right to receive a pro rata share
of the aggregate amount on deposit in the Trust Account. You will no longer own those shares and will have no right to participate in,
or have any interest in, the future growth of the Company, if any. You will be entitled to receive cash for these shares only if you properly
and timely request redemption.
If the Articles Extension Proposal and the Trust
Extension Proposal are not approved, we will not consummate a business combination by November 2, 2023, and we will consequently: (1)
cease all operations except for the purpose of winding up; (2) 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 earned on the funds in the Trust Account and not previously released to the Company (net of taxes payable
and up to $100,000 of interest to pay dissolution expenses), divided by the number of then issued and outstanding Public Shares, which
redemption will completely extinguish the public shareholders’ rights as shareholders (including the right to receive further liquidating
distributions, if any); and (3) as promptly as reasonably possible following such redemption, subject to the approval of the remaining
shareholders and our Board, liquidate and dissolve, subject in each case to our obligations under Cayman Islands law to provide for claims
of creditors and the requirements of other applicable law. Our warrants to purchase ordinary shares will expire worthless.
Holders of outstanding units must separate the
underlying Public Shares and Public Warrants prior to exercising redemption rights with respect to the Public Shares.
If you hold units registered in your own name,
you must deliver to Continental written instructions to separate such units into Public Shares and Public Warrants. This must be completed
far enough in advance so that you may then exercise your redemption rights with respect to the Public Shares upon the separation of the
units into Public Shares and Public Warrants.
If a broker, dealer, commercial bank, trust company
or other nominee holds your units, you must instruct such nominee to separate your units. Your nominee must send written instructions
to Continental. Such written instructions must include the number of units to be split and the nominee holding such units. Your nominee
must also initiate electronically, using DTC’s deposit withdrawal at custodian (DWAC) system, a withdrawal of the relevant units
and a deposit of an equal number of Public Shares and Public Warrants. This must be completed far enough in advance to permit your nominee
to exercise your redemption rights with respect to the Public Shares upon the separation of the units into Public Shares and Public Warrants.
While this is typically done electronically the same business day, you should allow at least one full business day to accomplish the separation.
If you fail to cause your Public Shares to be separated in a timely manner, you will likely not be able to exercise your redemption rights.
PROPOSAL NO. 1: THE ARTICLES EXTENSION PROPOSAL
Background
The proposed Articles Extension would amend the
Company’s Articles to extend the date by which the Company would be permitted to consummate a business combination from November
2, 2023 to November 2, 2024, or such earlier date as may be determined by the Board in its sole discretion. The complete text of the proposed
amendment is attached to this proxy statement as Annex A. All shareholders are encouraged to read the proposed amendment in its
entirety for a more complete description of its terms.
You are not being asked to vote on any business
combination at this time. If the Articles Extension and Trust Extension are implemented and you do not elect to redeem your Public Shares
now, you will retain the right to vote for an initial business combination when it is submitted to shareholders and the right to redeem
your Public Shares for cash in the event that an initial business combination is approved and completed or if the Company has not consummated
the initial business combination on or prior to the Articles Extension Date, subject to the terms of the Articles.
Reasons for the Proposed Articles Extension
The Company is proposing to amend, by way of special
resolution, its Articles to extend the date by which it would be permitted to consummate a business combination from November 2, 2023
to November 2, 2024.
The purpose of the Articles Extension Proposal
is to provide us with additional time to complete a business combination. Our efforts to complete a business combination will involve:
(1) entering into a definitive business combination agreement; (2) filing a registration statement containing a proxy statement/prospectus
for a shareholders meeting to approve our initial business combination and completing the review process of the Securities and Exchange
Commission with respect to that filing, (3) establishing a meeting date and record date for a meeting to approve a business combination,
and distributing proxy materials to shareholders; and (4) holding the meeting to approve an initial business combination. Without the
Articles Extension, we will not be able to complete an initial business combination on or before the Termination Date. If that were to
occur, Cactus would be forced to liquidate. Therefore, the Board has determined that it is in the best interests of our shareholders to
extend the date by which the Company has to consummate an initial business combination to the Articles Extension Date in order for our
shareholders to have the opportunity to participate in an investment in a company with which we may combine. If a suitable business combination
is timely identified, the Company intends to hold another shareholders meeting prior to the expiration of the Articles Extension in order
to seek shareholder approval of an initial business combination. In addition, the Board believes that it is advantageous for the Board
to be able to determine, in its sole discretion, to determine to liquidate and dissolve the Company at an earlier date. Approval of the
Articles Extension Proposal is a condition to the implementation of the Articles Extension.
If the Articles Extension
Is Approved
If both the Articles Extension Proposal and the
Trust Extension Proposal are approved, the Articles Extension in the form of Annex A hereto will be effective and will be filed
in the Cayman Islands, and the Trust Account will not be liquidated except in connection with our completion of a business combination,
or in connection with our liquidation if we do not complete a business combination by the Articles Extension Date. We will then continue
to attempt to consummate an initial business combination until the Articles Extension Date.
If the Articles Extension Proposal and Trust Extension
Proposal are approved, the Board will have the flexibility to liquidate the Trust Account and dissolve in accordance with law and to redeem
all Public Shares on a specified date following the approval of the Articles Extension at any time before the Articles Extension Date.
If the Articles Extension Is Not Approved
If the Articles Extension Proposal (or the Trust
Extension Proposal) is not approved, we will not consummate a business combination by November 2, 2023, and, consequently, we will: (1)
cease all operations except for the purpose of winding up; (2) 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 earned on the funds in the Trust Account (net of taxes payable and up to $100,000 of interest to pay dissolution
expenses), divided by the number of then issued and outstanding Public Shares, which redemption will completely extinguish the public
shareholders’ rights as shareholders (including the right to receive further liquidating distributions, if any); and (3) as promptly
as reasonably possible following such redemption, subject to the approval of the remaining shareholders and our Board, liquidate and dissolve,
subject in each case to our obligations under Cayman Islands law to provide for claims of creditors and the requirements of other applicable
law. There will be no distribution from the Trust Account with respect to our warrants which will expire worthless in the event we wind
up.
If the Company liquidates and dissolves, the Sponsor
has agreed that it will be liable to us if, and to the extent, any claims by a third party for services rendered or products sold to us
or a prospective target business with which we have entered into a written letter of intent, confidentiality or other similar agreement
or business combination agreement, reduce the amount of funds in the Trust Account to below (i) $10.20 per Public Share or (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 $10.20 per Public
Share is then held in the Trust Account due to reductions in the value of the trust assets, less taxes payable, except as to any claims
by a third party or a prospective target business who executed a waiver of any and all rights to the monies held in the Trust Account
(whether or not such waiver is enforceable) and except as to any claims under our indemnity of the underwriters of the IPO against certain
liabilities, including liabilities under the Securities Act. The Company has not independently verified whether the Sponsor has sufficient
funds to satisfy its indemnity obligations and believes that the Sponsor’s only assets are securities of the Company and, therefore,
the Sponsor may not be able to satisfy those obligations. None of the Company’s officers or directors will indemnify the Company
for claims by third parties, including, without limitation, claims by vendors and prospective target businesses.
Our Sponsor, directors and officers have entered
into a letter agreement with us pursuant to which they have agreed to waive their redemption rights with respect to their ordinary shares
in connection with a shareholder vote to approve an amendment to our Articles such as the Articles Extension. On the record date, the
Sponsor beneficially owned and was entitled to vote 3,162,500 ordinary shares, in the aggregate, which represent 58.3% of the Company’s
issued and outstanding ordinary shares.
In connection with the Articles 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 not previously released to the Company to pay taxes, divided by the number of then outstanding
Public Shares, regardless of whether such public shareholders vote “FOR” or “AGAINST” the Articles Extension Proposal
or the Trust Extension Proposal, and a Redemption can also be made by public shareholders who do not vote, or do not instruct their broker
or bank how to vote, at the Meeting. Public shareholders may make a Redemption regardless of whether such public shareholders were holders
as of the record date. However, redemption payments for Redemptions in connection with this Meeting will only be made if the Articles
Extension Proposal and the Trust Extension Proposal receive the requisite shareholder approvals and we determine to implement the Articles
Extension and Trust Extension. If the Articles Extension Proposal and the Trust Extension Proposal are approved by the requisite vote
of shareholders, the remaining holders of Public Shares will retain their right to redeem their Public Shares when a business combination
is submitted to the shareholders, subject to any limitations set forth in our Articles, as amended by the Articles Extension (as long
as their redemption is made at least two (2) business days prior to the meeting at which the shareholders’ vote is sought). Each
redemption of shares by our public shareholders will decrease the amount in our Trust Account, which held approximately $24.7 million
of marketable securities as of October 16, 2023. In addition, public shareholders who do not make a Redemption would be entitled to have
their shares redeemed for cash if the Company has not completed a business combination by the Articles Extension Date or our earlier liquidation.
To exercise your redemption rights, you must
tender your shares to the Company’s transfer agent at least two (2) business days prior to the Meeting (i.e., by October 31, 2023).
You may tender your shares by either delivering your share certificate to the transfer agent or by delivering your shares electronically
using the DTC’s DWAC (Deposit/Withdrawal At Custodian) system. If you hold your shares in street name, you will need to instruct
your bank, broker or other nominee to withdraw the shares from your account in order to exercise your redemption rights. The redemption
rights include the requirement that a shareholder must identify itself in writing as a beneficial holder and provide its legal name, phone
number and address in order to validly redeem its Public Shares.
As of October 16, 2023, there was approximately
$24.7 million of marketable securities in the Trust Account. If the Articles Extension Proposal and the Trust Extension Proposal are approved
and the Company extends the business combination period last through November 2, 2024 (or such earlier date as may be determined by our
Board in its sole discretion), the redemption price per share as of the date of the meeting for the approval of an initial business combination
or the Company’s subsequent liquidation may be a different amount in comparison to the current redemption price of approximately
$10.88 per share under the terms of our current Articles and Trust Agreement.
Our Board will abandon and not implement the Articles
Extension Proposal unless our shareholders approve both the Articles Extension Proposal and the Trust Extension Proposal. This means
that if one proposal is approved by the shareholders and the other proposal is not, neither proposal will be implemented.
Vote Required for Approval
A special resolution as a matter of Cayman Islands
law, being a resolution passed by a majority of at least two-thirds of Cactus’ shareholders as, being entitled to do so, vote in
person or by proxy at the Meeting, and includes a unanimous written resolution, is required to approve the Articles Extension Proposal.
Assuming the presence of a quorum at the Meeting, abstentions or a failure to vote on the Articles Extension Proposal will have no effect
on the vote concerning the Articles Extension Proposal.
Recommendation of the Board
OUR BOARD UNANIMOUSLY RECOMMENDS THAT OUR SHAREHOLDERS
VOTE “FOR” THE ARTICLES EXTENSION PROPOSAL.
U.S. Federal Income Tax
Considerations for Shareholders Exercising Redemption Rights
The following is a discussion
of U.S. federal income tax considerations generally applicable to U.S. Holders (as defined below) that elect to have their Public Shares
redeemed for cash if the Articles Extension Proposal is approved. This discussion applies only to Public Shares that are held as a capital
asset for U.S. federal income tax purposes (generally, property held for investment). This discussion does not describe all of the U.S.
federal income tax consequences that may be relevant to holders in light of their particular circumstances, including the alternative
minimum tax or the Medicare tax on investment income, or the consequences to holders subject to special rules, including:
| ● | our Sponsor, directors and officers and their respective affiliates; |
| ● | financial institutions, insurance companies or other financial
services entities; |
| ● | broker-dealers or other persons that are subject to the mark-to-market
method of accounting; |
| ● | tax-exempt organizations, qualified retirement plans, individual
retirement accounts or other tax deferred accounts; |
| ● | governments or agencies or instrumentalities thereof; |
| ● | regulated investment companies or 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 or five percent or more of the total value of all classes of our shares; |
| ● | persons that acquired Public Shares pursuant to an exercise
of employee share options or otherwise as compensation; |
| ● | persons that hold Public Shares as part of a straddle, constructive
sale, hedging, conversion or other integrated or similar transaction; |
| ● | persons whose functional currency is not the U.S. dollar;
or |
| ● | persons that are subject to the applicable financial statement
accounting rules under Section 451(b) of the Code. |
This discussion is based
on the Internal Revenue Code of 1986 (the “Code”), proposed, temporary and final Treasury Regulations promulgated under
the Code, and judicial and administrative interpretations thereof, all as of the date hereof. All of the foregoing is subject to change,
which change could apply retroactively and could affect the tax considerations described herein. This discussion does not address U.S.
federal taxes other than those pertaining to U.S. federal income taxation (such as estate or gift taxes), nor does it address any aspects
of U.S. state or local or non-U.S. taxation.
We have not and do not
intend to seek any rulings from the Internal Revenue Service (the “IRS”) regarding the exercise of redemption rights.
There can be no assurance that the IRS will not take positions inconsistent with the considerations discussed below or that any such positions
would not be sustained by a court.
As used herein, a “U.S.
Holder” is a beneficial owner of Public Shares who or that is, for U.S. federal income tax purposes:
| ● | an individual citizen or resident of the United States, |
| ● | a corporation (or other entity that is 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 or any state thereof or the District of Columbia, |
| ● | an estate whose income is subject to U.S. federal income tax
regardless of its source, or |
| ● | a trust if (1) a U.S. court can exercise primary supervision
over the administration of such trust and one or more U.S. persons have the authority to control all substantial decisions of the trust
or (2) it has a valid election in place to be treated as a U.S. person. |
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 any entity or arrangement so characterized for U.S. federal income tax purposes) holds Public Shares, the tax treatment
of such partnership and a person treated as a partner of such partnership will generally depend on the status of the partner and the activities
of the partnership. Partnerships holding any Public Shares and persons that are treated as partners of such partnerships should consult
their tax advisors as to the particular U.S. federal income tax consequences of an exercise of redemption rights to them.
EACH HOLDER SHOULD
CONSULT ITS OWN TAX ADVISOR WITH RESPECT TO THE PARTICULAR TAX CONSEQUENCES TO SUCH HOLDER, AN EXERCISE OF REDEMPTION RIGHTS, INCLUDING
THE EFFECTS OF U.S. FEDERAL, STATE AND LOCAL AND NON-U.S. TAX LAWS.
Redemption Treated
as Sale or Distribution
Subject to the PFIC rules
discussed below under “PFIC Considerations,” if a U.S. Holder’s Public Shares are redeemed pursuant to the redemption
provisions described in this proxy statement, the U.S. federal income tax consequences to such holder will depend on whether the redemption
qualifies as a sale of such shares redeemed under Section 302 of the Code or is treated as a distribution under Section 301 of the Code.
If the redemption qualifies
as a sale of Public Shares, a U.S. Holder will be treated as described below under the section entitled “Taxation of Sale or
Other Taxable Disposition of Public Shares.” If the redemption does not qualify as a sale of Public Shares, a U.S. Holder will
be treated as receiving a distribution with the tax consequences described below under the section entitled “Taxation of Distributions.”
The redemption of Public
Shares will generally qualify as a sale of the Public Shares that are redeemed if such redemption (i) is “substantially disproportionate”
with respect to the redeeming U.S. Holder, (ii) results in a “complete termination” of such U.S. Holder’s interest or
(iii) is “not essentially equivalent to a dividend” with respect to such U.S. Holder. These tests are explained more fully
below.
For purposes of such tests,
a U.S. Holder takes into account not only ordinary shares actually owned by such U.S. Holder, but also ordinary shares that are constructively
owned by such U.S. Holder. A redeeming U.S. Holder may constructively own, in addition to ordinary shares owned directly, ordinary shares
owned by certain related individuals and entities in which such U.S. Holder has an interest or that have an interest in such U.S. Holder,
as well as any ordinary shares such U.S. Holder has a right to acquire by exercise of an option, which would generally include shares
which could be acquired pursuant to the exercise of the warrants.
The redemption of ordinary
shares will generally be “substantially disproportionate” with respect to a redeeming U.S. Holder if the percentage of the
respective entity’s outstanding voting shares that such U.S. Holder actually or constructively owns immediately after the redemption
is less than 80% of the percentage of the respective entity’s outstanding voting shares that such U.S. Holder actually or constructively
owned immediately before the redemption. Prior to an initial business combination, the Public Shares may not be treated as voting shares
for this purpose and, consequently, this substantially disproportionate test may not be applicable. There will be a complete termination
of such U.S. Holder’s interest if either (i) all of the Public Shares actually or constructively owned by such U.S. Holder are redeemed
or (ii) all of the Public Shares actually owned by such U.S. Holder are redeemed and such 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 such U.S. Holder does not constructively
own any other shares. The redemption of Public Shares will not be essentially equivalent to a dividend if it results in a “meaningful
reduction” of such U.S. Holder’s proportionate interest in the respective entity. Whether the redemption will result in a
meaningful reduction in such U.S. Holder’s proportionate interest will depend on the particular facts and circumstances applicable
to it. 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.”
If none of the foregoing
tests is satisfied, then the redemption of Public Shares will be treated as a distribution to the redeemed holder and the tax effects
to such U.S. Holder will be as described below under the section entitled “Taxation of Distributions.” After the application
of those rules, any remaining tax basis of the U.S. Holder in the redeemed Public Shares will be added to such holder’s adjusted
tax basis in its remaining shares, or, if it has none, to such holder’s adjusted tax basis in its warrants or possibly in other
shares constructively owned by it.
U.S. Holders should consult
their tax advisors as to the tax consequences of a redemption, including any special reporting requirements.
Taxation of Distributions.
Subject to the PFIC rules
discussed below under “PFIC Considerations”, if the redemption of a U.S. Holder’s Public Shares is treated as
a distribution, such distribution will generally be treated a dividend for U.S. federal income tax purposes to the extent paid from our
current or accumulated earnings and profits, as determined under U.S. federal income tax principles. Such dividends will be taxable to
a corporate 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. With respect to non-corporate U.S. Holders, dividends will generally
be taxed at preferential long-term capital gains rates only if Public Shares are readily tradable on an established securities market
in the United States, provided that we are not treated as a PFIC in the taxable year in which the dividend was paid or in any previous
year and certain other requirements are met. U.S. Holders should consult their tax advisors regarding the availability of the lower rate
for any dividends paid with respect to Public Shares.
Distributions in excess
of current and accumulated earnings and profits will generally constitute a return of capital that will be applied against and reduce
(but not below zero) the U.S. Holder’s adjusted tax basis in our Public Shares. Any remaining excess will be treated as gain realized
on the sale or other disposition of the Public Shares and will be treated as described below under the section entitled “Taxation
of Sale or Other Taxable Disposition of Public Shares.” However, we do not currently maintain calculations of our earnings and
profits in accordance with U.S. federal income tax principles. U.S. Holders should therefore assume that any amounts treated as a distribution
as a result of a redemption of Public Shares will be reported as dividend income.
Taxation of Sale or
Other Taxable Disposition of Public Shares.
Subject to the PFIC rules
discussed below under “PFIC Considerations,” if the redemption of a U.S. Holder’s Public Shares is treated as
a sale or other taxable disposition, as discussed above, a U.S. Holder will generally recognize capital gain or loss in an amount equal
to the difference between (i) the amount realized and (ii) the U.S. Holder’s adjusted tax basis in the Public Shares redeemed.
Under tax law currently
in effect, long-term capital gains recognized by non-corporate U.S. Holders are generally subject to U.S. federal income tax at a reduced
rate of tax. Capital gain or loss will constitute long-term capital gain or loss if the U.S. Holder’s holding period for the ordinary
shares exceeds one year. However, it is unclear whether the redemption rights with respect to the Public Shares described in this proxy
statement may prevent the holding period of the Public Shares from commencing prior to the termination of such rights. The deductibility
of capital losses is subject to various limitations. U.S. Holders who hold different blocks of Public Shares (Public Shares purchased
or acquired on different dates or at different prices) should consult their tax advisor to determine how the above rules apply to them.
PFIC Considerations
Generally
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 (generally 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 received
from unrelated persons) and gains from the disposition of passive assets. For this purpose, cash generally is treated as held for the
production of passive income. The determination of whether a foreign corporation is a PFIC is made annually. Once a foreign corporation
is treated as a PFIC it is, with respect to a shareholder during the time it qualifies as a PFIC, and subject to certain exceptions, always
treated as a PFIC with respect to such shareholder, regardless of whether it satisfied either of the qualification tests in subsequent
years.
Pursuant
to a “startup exception,” a foreign corporation will not be a PFIC for the first taxable year the foreign corporation has
gross income (the “startup year”) if (1) no predecessor of the foreign corporation was a PFIC; (2) the foreign corporation
satisfies the IRS that it will not be a PFIC for either of the first two taxable years following the startup year; and (3) the foreign
corporation is not in fact a PFIC for either of those years.
PFIC Status
of Cactus
Based upon
the composition of our income and assets, and our expectations regarding the timing of the completion of an initial business combination,
we believe that we will not be eligible for the startup exception and therefore that we have been a PFIC since our first taxable year.
Default PFIC Rules
If we are a PFIC for any
taxable year (or portion thereof) that is included in the holding period of a U.S. Holder and the U.S. Holder did not make a timely and
effective “qualified election fund” (“QEF”) election for our first taxable year as a PFIC in which the
U.S. Holder held Public Shares, a QEF election along with a purging election, or a “mark-to-market” election, then such holder
will generally be subject to special rules (the “Default PFIC Regime”) with respect to:
| ● | any gain recognized by the U.S. Holder on the sale or other
disposition of its Public Shares, which would include a redemption of Public Shares if such redemption is treated as a sale under the
rules discussed above; and |
| ● | any “excess distribution” made to the U.S. Holder
(generally, any distributions to such U.S. Holder during a taxable year of the U.S. Holder that are greater than 125% of the average
annual distributions received by such U.S. Holder in respect of its ordinary shares during the three preceding taxable years of such
U.S. Holder or, if shorter, such U.S. Holder’s holding period for such ordinary shares), which may include a redemption of Public
Shares if such redemption is treated as a distribution under the rules discussed above. |
Under the Default PFIC
Regime:
| ● | the U.S. Holder’s gain or excess distribution will be
allocated ratably over the U.S. Holder’s holding period for its Public Shares; |
| ● | the amount of gain allocated to the U.S. Holder’s taxable
year in which the U.S. Holder recognized the gain or received the excess distribution, or to the period in the U.S. Holder’s holding
period before the first day of the first taxable year in which we are a PFIC, will be taxed as ordinary income; |
| ● | the amount of gain allocated to other taxable years (or portions
thereof) of the U.S. Holder and included in such U.S. Holder’s holding period will be taxed at the highest tax rate in effect for
that year and applicable to the U.S. Holder; and |
| ● | an additional tax equal to the interest charge generally applicable
to underpayments of tax will be imposed on the U.S. Holder in respect of the tax attributable to each such other taxable year of such
U.S. Holder. |
QEF Election
In general, if we are
determined to be a PFIC, a U.S. Holder may avoid the PFIC tax consequences described above in respect of its Public Shares by making a
timely QEF election (if eligible to do so) to include in income its pro rata share of our net capital gains (as long-term capital gain)
and other earnings and profits (as ordinary income), on a current basis, in each case whether or not distributed, in the taxable year
of the U.S. Holder in which or with which our taxable year ends. In general, a QEF election must be made on or before the due date (including
extensions) for filing such U.S. Holder’s tax return for the taxable year for which the election relates.
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 U.S. Holder generally makes a
QEF election by attaching a completed IRS Form 8621, 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. 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 U.S. Holder makes
a QEF election after our first taxable year as a PFIC in which the U.S. Holder held (or was deemed to hold) Public 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 Public Shares unless the U.S. Holder makes a purging election under the PFIC rules. Under the purging election,
the U.S. Holder will be deemed to have sold such Public 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 U.S. Holder
will have a new basis and holding period in such Public Shares for purposes of the PFIC rules.
In order to comply with
the requirements of a QEF election, a U.S. Holder must receive a PFIC annual information statement from us. If we determine we are a PFIC
for any taxable year, 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, but there is no assurance that we will timely provide
such required information. There is also no assurance that we will have timely knowledge of our status as a PFIC in the future or of the
required information to be provided.
If a U.S. Holder has made
a QEF election with respect to its Public Shares, and the special tax and interest charge rules do not apply to such shares (because of
a timely QEF election for our first taxable year as a PFIC in which the U.S. Holder holds (or is deemed to hold) such shares or as a result
of a purging election, as described above), any gain recognized on the sale of the Public Shares generally will be taxable as capital
gain and no interest charge will be imposed. As discussed above, U.S. Holders of a QEF are currently taxed on their pro rata shares of
its earnings and profits, whether or not distributed. In such case, a subsequent distribution of such earnings and profits that were previously
included in income generally should not be taxable as a dividend to such U.S. Holders. The tax basis of a 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.
Mark-to-Market Election
Alternatively, a U.S.
Holder may make an election to mark marketable shares in a PFIC to market on an annual basis. PFIC shares generally are marketable if
they are (i) “regularly traded” on a national securities exchange that is registered with the Securities Exchange Commission
or on the national market system established under Section 11A of the Securities and Exchange Act of 1934, or (ii) “regularly traded”
on any exchange or market that the Treasury Department determines to have rules sufficient to ensure that the market price accurately
represents the fair market value of the shares. The Public Shares, which are listed on Nasdaq, should qualify as marketable shares for
this purpose but there can be no assurance that the Public Shares will be “regularly traded.”
Pursuant
to such an election, a U.S. Holder would include in each year as ordinary income the excess, if any, of the fair market value of such
shares over its adjusted basis at the end of the taxable year. A U.S. Holder may treat as ordinary loss any excess of the adjusted basis
of the shares over its fair market value at the end of the year, but only to the extent of the net amount previously included in income
as a result of the election in prior years. A U.S. Holder’s adjusted tax basis in the PFIC shares will be increased to reflect
any amounts included in income, and decreased to reflect any amounts deducted, as a result of a mark-to-market election. Any gain recognized
on a disposition of Public Shares will be treated as ordinary income and any loss will be treated as ordinary loss (but only to the extent
of the net amount of income previously included as a result of a mark-to-market election).
PFIC Reporting Requirements
If we are a PFIC, a U.S.
Holder of Public Shares will be required to file an annual report on IRS Form 8621 containing such information with respect to its interest
in a PFIC as the IRS may require. Failure to file IRS Form 8621 for each applicable taxable year may result in substantial penalties and
result in the U.S. Holder’s taxable years being open to audit by the IRS (potentially including with respect to items that do not
relate to a U.S. Holder’s investment in the Public Shares) until such forms are properly filed.
THE PFIC RULES ARE
VERY COMPLEX AND ARE IMPACTED BY VARIOUS FACTORS IN ADDITION TO THOSE DESCRIBED ABOVE. ALL U.S. HOLDERS ARE URGED TO CONSULT THEIR TAX
ADVISORS REGARDING THE APPLICATION OF THE PFIC RULES ON THE REDEMPTION OF CLASS A ORDINARY SHARES, INCLUDING, WITHOUT LIMITATION, WHETHER
A QEF ELECTION, A PURGING ELECTION, A MARK-TO-MARKET ELECTION, OR ANY OTHER ELECTION IS AVAILABLE AND THE CONSEQUENCES TO THEM OF ANY
SUCH ELECTION, AND THE IMPACT OF ANY PROPOSED OR FINAL PFIC TREASURY REGULATIONS.
Information Reporting
and Backup Withholding
Dividend payments with
respect to the Public Shares and proceeds from the sale, exchange or redemption of the Public Shares may be subject to information reporting
to the IRS and possible backup withholding. Backup withholding will not apply, however, to a U.S. Holder who furnishes a correct taxpayer
identification number and makes other required certifications, or who is otherwise exempt from backup withholding and establishes such
exempt status.
Backup withholding is not an additional tax. Amounts
withheld as backup withholding may be credited against a U.S. Holder’s U.S. federal income tax liability, and a U.S. Holder generally
may obtain a refund of any excess amounts withheld under the backup withholding rules by timely filing the appropriate claim for refund
with the IRS and furnishing any required information. U.S. Holders are urged to consult their own tax advisors regarding the application
of backup withholding and the availability of and procedure for obtaining an exemption from backup withholding in their particular circumstances.
PROPOSAL NO. 2: THE TRUST EXTENSION PROPOSAL
Background
The proposed Trust Extension would amend the Trust
Agreement to extend the date by which the Company would be permitted to consummate a business combination from November 2, 2023 to November
2, 2024, or such earlier date as may be determined by our Board in its sole discretion. A copy of the proposed Trust Extension is attached
to this proxy statement as Annex B. All shareholders are encouraged to read the proposed amendment in its entirety for a more complete
description of its terms.
You are not being asked to vote on an initial
business combination at this time. If the Trust Extension is implemented and you do not elect to redeem your Public Shares now, you will
retain the right to vote on a prospective business combination if and when it is submitted to shareholders and the right to redeem your
Public Shares for cash in the event that an initial business combination is approved and completed or if the Company has not consummated
an initial business combination on or prior to the Articles Extension Date, subject to the terms of the Articles.
Reasons for the Trust Extension
The purpose of the Trust Extension is to allow
the Company to extend the date by which the Company would be permitted to consummate a business combination from November 2, 2023 to November
2, 2024, or such earlier date as may be determined by our Board in its sole discretion. The Trust Extension parallels the proposed Articles
Extension.
The Company’s current Trust Agreement, as
amended to date, provides that the Company has until 24 months after the closing of the IPO, or such later date as may be approved by
the Company’s shareholders in accordance with the Company’s Articles, to terminate the Trust Agreement and liquidate the Trust
Account.
If the Trust Extension Is Approved
If both the Articles Extension Proposal and the
Trust Extension Proposal are approved, the amendment to the Trust Agreement in the form of Annex B hereto will be executed and
the Trust Account will not be disbursed except in connection with our completion of a business combination or in connection with our liquidation
if we do not complete a business combination by the Articles Extension Date. The Company will then continue to attempt to consummate a
business combination until the Articles Extension Date or until the Board determines in its sole discretion that it will not be able to
consummate a business combination by the Articles Extension Date and does not wish to continue operations until such expiration.
If the Trust Extension Is Not Approved
If the Trust Extension is not approved, we will
not consummate a business combination by November 2, 2023, and, consequently, we will: (1) cease all operations except for the purpose
of winding up; (2) 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 earned on the funds in
the Trust Account and not previously released to the Company (net of taxes payable and up to $100,000 of interest to pay dissolution expenses),
divided by the number of then issued and outstanding Public Shares, which redemption will completely extinguish the public shareholders’
rights as shareholders (including the right to receive further liquidating distributions, if any); and (3) as promptly as reasonably possible
following such redemption, subject to the approval of the remaining shareholders and our Board, liquidate and dissolve, subject in each
case to the Company’s obligations under Cayman Islands law to provide for claims of creditors and the requirements of other applicable
law.
Our Board will abandon and not implement the Trust
Extension Proposal unless our shareholders approve both the Articles Extension Proposal and the Trust Extension Proposal. This means
that if one proposal is approved by the shareholders and the other proposal is not, neither proposal will be implemented.
Proposed Resolution
At the Meeting, the following resolution will be
presented for adoption pursuant to the Trust Extension Proposal:
RESOLVED, that conditional upon the effectiveness
of the special resolution to amend the Amended and Restated Memorandum and Articles of Association of the Company as set forth in Annex
A, the amendment to the Investment Management Trust Agreement, dated as of November 2, 2021 and amended on April 20, 2023, by and between
the Company and Continental Stock Transfer & Trust Company, as trustee, pursuant to an amendment to the Trust Agreement in the form
set forth in Annex B of the accompanying proxy statement, is hereby authorized and approved.
Vote Required for Approval
The affirmative vote of holders of at least 65%
of the outstanding shares of our ordinary shares entitled to vote thereon is required to approve the Trust Extension Proposal. Consequently,
abstentions or the failure to vote on the Trust Extension will have the same effect as a vote “AGAINST” the Trust Extension
Proposal.
Public shareholders may elect to redeem their Public
Shares regardless of whether or how they vote on the Trust Extension Proposal at the Meeting; however, redemption payments for Redemptions
in connection with this Meeting will only be made if the Articles Extension Proposal and the Trust Extension Proposal receive the requisite
shareholder approvals and we determine to implement the Articles Extension and Trust Extension.
Recommendation of the Board
OUR BOARD UNANIMOUSLY RECOMMENDS THAT OUR SHAREHOLDERS
VOTE “FOR” THE TRUST EXTENSION PROPOSAL.
PROPOSAL NO. 3: THE ADJOURNMENT PROPOSAL
Background
The Adjournment Proposal, if adopted, will allow
our Board to adjourn the Meeting to a later time to permit further solicitation of proxies. The Adjournment Proposal will only be presented
at the Meeting in the event that there are insufficient votes for, or otherwise in connection with, the approval of the other proposals.
In addition to an adjournment of the Meeting upon
approval of the Adjournment Proposal, the Cactus board of directors is empowered under Cayman Islands law to postpone the Meeting at any
time prior to the Meeting being called to order in accordance with the Articles. However, because the Meeting will be held on the Current
Termination Date, we will not adjourn the Meeting to a later date, as that would result in the required winding up of our operations under
our Articles prior to our being able to approve both the Articles Extension Proposal and the Trust Extension Proposal.
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 Meeting to a later time in the event that there are insufficient votes for,
or otherwise in connection with, the approval of the other proposals.
Proposed Resolution
At the Meeting, the following resolution will be
presented for adoption pursuant to the Adjournment Proposal:
RESOLVED, as an ordinary resolution, that the Meeting
be adjourned to a later time, 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 Articles Extension Proposal or the Trust Extension Proposal presented
at the Meeting.
Vote Required for Approval
The approval
of the Adjournment Proposal requires an ordinary resolution, being a resolution passed by a simple majority of the votes cast by shareholders
of Cactus as being entitled to do so, vote in person or by proxy at the Meeting, and includes a unanimous written resolution. Accordingly,
assuming that a quorum is present, a shareholder’s failure to vote, as well as an abstention and a broker non-vote, will have no
effect on the outcome of the Adjournment Proposal.
Recommendation of the Board
OUR BOARD UNANIMOUSLY RECOMMENDS THAT OUR SHAREHOLDERS
VOTE “FOR” THE ADJOURNMENT PROPOSAL.
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
AND MANAGEMENT
The following table sets forth information regarding
the beneficial ownership of our ordinary shares as of October 16, 2023 by:
| ● | each person known by us to be the beneficial owner of more
than 5% of our outstanding shares of ordinary shares; |
| ● | each of our executive officers and directors; and |
| ● | all our officers and directors as a group. |
Unless otherwise indicated, we believe that all
persons named in the table have sole voting and investment power with respect to all shares of ordinary shares beneficially owned by them.
| Name and Address of Beneficial Owner(1) | |
Number of
Class A
Ordinary
Shares
Beneficially
Owned | | |
Approximate
Percentage of
Issued and
Outstanding
Class A
Ordinary
Shares(2) | |
| 5% or Greater Shareholders | |
| | |
| |
| Cactus Healthcare Management LP (3) | |
| 3,162,500 | (4) | |
| 58.3 | % |
| Highbridge Capital Management, LLC (5) | |
| 952,156 | | |
| 7.5 | %(6) |
| Saba Capital Management, L.P. (7) | |
| 750,358 | | |
| 5.9 | %(8) |
| Calamos Market Neutral Income Fund, a series of Calamos Investment Trust(9) | |
| 750,000 | | |
| 5.9 | %(10) |
| Radcliffe Capital Management, L.P. and affiliates(11) | |
| 400,000 | | |
| 16.2 | %(12) |
| | |
| | | |
| | |
| Directors and Executive Officers | |
| | | |
| | |
| Ofer Gonen | |
| - | | |
| - | |
| Stephen T. Wills(13) | |
| - | | |
| - | |
| David Sidransky, M.D. | |
| - | | |
| - | |
| Nachum (Homi) Shamir(14) | |
| - | | |
| - | |
| Hadar Ron, MD(15) | |
| - | | |
| - | |
| David J. Shulkin, M.D.(16) | |
| - | | |
| - | |
| All officers, directors and director nominees as a group (six individuals)(3) | |
| 3,162,500 | (4) | |
| 58.3 | % |
| * |
Less than one percent. |
| |
|
| (1) |
Unless otherwise noted, the business address of each of the following entities or individuals is c/o Cactus Acquisition Corp. 1 Limited, 4B Cedar Brook Drive, Cranbury, NJ 08512. |
| |
|
| (2) |
Except where noted below, the percentages of outstanding Class
A ordinary shares presented in the above table are based on 2,260,351 Class A ordinary shares issued and outstanding as of October 16,
2023. In addition, as of that date, our Sponsor (Cactus Healthcare Management LP) holds all 3,162,500 outstanding Class B ordinary shares,
which will convert into Class A ordinary shares on a one-for-one basis upon consummation of our initial business combination or earlier
at the election of the holder thereof. Other than the foregoing conversion provisions, Class B ordinary shares have the same rights as
Class A ordinary shares, except that only Class B ordinary shares have the right to vote in the election of directors. Consequently, we
have treated the 3,162,500 Class B ordinary shares as part of the Class A ordinary shares solely for the purposes of the presentation
of our Sponsor’s beneficial ownership herein (whereas for all other 5% or greater shareholders, the Class A ordinary shares that
underlie the Class B ordinary shares are not counted as issued and outstanding Class A ordinary shares and do not reduce their beneficial
ownership of Class A ordinary shares).
The above table does not reflect record or
beneficial ownership of public or private warrants, as those warrants are not exercisable within 60 days of October 16, 2023. |
| (3) |
Our sponsor, Cactus Healthcare Management LP, directly holds our shares that are reported in this row. Cactus Healthcare Management LLC serves as the sole general partner of our sponsor and may therefore be deemed to share voting and investment authority with respect to the shares held thereby. Each of Israel Biotech Fund, Kalistcare Ltd. (an affiliate of Consensus Business Group) and Clal Biotechnology Industries holds an equal 33.33% equity interest in Cactus Healthcare Management LLC. No single individual or group of individuals possesses the ability to control the decisions made by the sole general partner. Each of Mr. Shamir, Dr. Shulkin and Dr. Ron holds a limited partnership interest in our sponsor (a 1.25%, 1.0%, and 1.0% limited partnership interest, respectively), and our Chief Financial Officer, Mr. Wills, holds a 4.75% limited partnership interest in our sponsor. |
| |
|
| (4) |
Consists of 3,162,500 Class A ordinary shares issuable upon conversion of an equal number of Class B ordinary shares, all of which are held by the Cactus Healthcare Management LP. The foregoing conversion will occur automatically on the first business day following consummation of a business combination by the Issuer. Excludes 4,866,667 Class A ordinary shares underlying warrants held by our sponsor, which are not exercisable as of, or within 60 days of, March 1, 2023. |
| |
|
| (5) |
Based solely on a Schedule 13G/A filed by Highbridge Capital Management, LLC with the SEC on January 31, 2023. Highbridge Capital Management, LLC serves as the trading manager of Highbridge Tactical Credit Master Fund, L.P. and Highbridge SPAC Opportunity Fund, L.P. Each of these persons may be deemed to be the beneficial owner of all of the reported shares and to possess shared voting power with respect to all of these shares. The address of these entities is 277 Park Avenue, 23rd Floor, New York, New York 10172. |
| |
|
| (6) |
This percentage, as appearing in the Schedule 13G/A filed by Highbridge Capital Management, LLC with the SEC on January 31, 2023, is based on 12,650,000 outstanding Class A ordinary shares, which was the outstanding number prior to the redemption of shares in connection with the Initial Extension Meeting and Conversion Amendment Meeting held on April 20, 2023 and May 30, 2023, respectively, which reduced the number of outstanding Class A ordinary shares. We are uncertain as to the actual number of Class A ordinary shares now held by this shareholder and what percentage that constitutes out of the current number of outstanding Class A ordinary shares (2,260,351). |
| |
|
| (7) |
Based solely on a Schedule 13G/A filed by Saba Capital Management, L.P., a Delaware limited partnership, with the SEC on February 14, 2023. Each of Saba Capital Management, L.P., Saba Capital Management GP, LLC, a Delaware limited liability company, and Mr. Boaz R. Weinstein may be deemed to be the beneficial owner of all of the reported shares and to possess shared voting and dispositive power with respect to all of these shares. The address of these persons is 405 Lexington Avenue, 58th Floor, New York, New York 10174. |
| |
|
| (8) |
This percentage, as appearing in the Schedule 13G/A filed by Saba Capital Management, L.P. with the SEC on February 14, 2023, is based on 12,650,000 outstanding Class A ordinary shares, which was the outstanding number prior to the redemption of shares in connection with the Initial Extension Meeting and Conversion Amendment Meeting held on April 20, 2023 and May 30, 2023, respectively, which reduced the number of outstanding Class A ordinary shares. We are uncertain as to the actual number of Class A ordinary shares now held by this shareholder and what percentage that constitutes out of the current number of outstanding Class A ordinary shares (2,260,351). |
| |
|
| (9) |
Based solely on a Schedule 13G filed by Calamos Market Neutral Income Fund, a series of Calamos Investment Trust, with the SEC on February 8, 2022. The address of this shareholder is 2020 Calamos Court, Naperville, IL 60563. |
| (10) |
This percentage, as appearing in the Schedule 13G filed by Calamos Market Neutral Income Fund with the SEC on February 8, 2022, is based on 12,650,000 outstanding Class A ordinary shares, which was the outstanding number prior to the redemption of shares in connection with the Initial Extension Meeting and Conversion Amendment Meeting held on April 20, 2023 and May 30, 2023, respectively, which reduced the number of outstanding Class A ordinary shares. We are uncertain as to the actual number of Class A ordinary shares now held by this shareholder and what percentage that constitutes out of the current number of outstanding Class A ordinary shares (2,260,351). |
| |
|
| (11) |
Based solely on a Schedule 13G filed by Radcliffe Capital Management, L.P. and certain affiliated persons and entities on April 27, 2023 |
| |
|
| (12) |
This percentage, as appearing in the Schedule 13G filed by Radcliffe Capital Management, L.P. and certain affiliated persons and entities on April 27, 2023, is based on 2,464,529 outstanding Class A ordinary shares, which was the outstanding number prior to the redemption of shares in connection with the Conversion Amendment Meeting, which reduced the number of outstanding Class A ordinary shares by an additional 204,178 shares. We are uncertain as to the actual number of Class A ordinary shares now held by this shareholder and what percentage that constitutes out of the current number of outstanding Class A ordinary shares (2,260,351). |
| |
|
| (13) |
Please see footnote (3) above for a description of Mr. Wills’ ownership interest in our sponsor. |
| |
|
| (14) |
Please see footnote (3) above for a description of Mr. Shamir’s ownership interest in our sponsor. |
| |
|
| (15) |
Please see footnote (3) above for a description of Dr. Ron’s ownership interest in our sponsor. |
| |
|
| (16) |
Please see footnote (3) above for a description of Dr. Shulkin’s ownership interest in our sponsor. |
WHERE YOU CAN FIND MORE INFORMATION
The Company files annual, quarterly and current
reports, proxy statements and other information with the SEC. The SEC maintains an Internet website that contains reports, proxy and information
statements, and other information regarding issuers, including us, that file electronically with the SEC. The public can obtain any documents
that we file electronically with the SEC at www.sec.gov.
This proxy statement describes the material elements
of relevant contracts, exhibits and other information attached as annexes to this proxy statement. Information and statements contained
in this proxy statement are qualified in all respects by reference to the copy of the relevant contract or other document included as
an annex to this document.
Our corporate website address is https://cactusac1.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.
You may obtain additional copies of this proxy
statement, at no cost, and you may ask any questions you may have about the Articles Extension Proposal, the Trust Extension Proposal
and the Adjournment Proposal, by contacting the Company’s Chief Financial Officer at the following address and telephone number:
Cactus Acquisition Corp. 1 Ltd.
4B Cedar Brook Drive
Cranbury, NJ 08512
Attention: Stephen T. Wills, Chief Financial Officer
Telephone: 609-495-2222
Email: swills@cactusac1.com
In order to receive timely delivery of the documents
in advance of the Meeting, you must make your request for information no later than October 30, 2023.
ANNEX A
PROPOSED AMENDMENT
TO THE
AMENDED AND RESTATED
MEMORANDUM AND ARTICLES OF ASSOCIATION
OF
CACTUS ACQUISITION CORP. 1 LIMITED
November 2, 2023
RESOLVED, as special resolutions,
that:
(i) Article 49.7 of the Articles
of Association of the Company be deleted in its entirety and replaced as follows:
“In the event that the Company does not consummate
a Business Combination within 36 months from the consummation of the IPO or such earlier date as determined by the Board, or such later
time as the Members may approve in accordance with the Articles, the Company shall:
(a) cease all operations except for the purpose
of winding up;
(b) 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 earned on the funds held in the Trust Account and not previously released to
the Company (less taxes payable and up to US$100,000 of interest to pay dissolution expenses), divided by the number of then Public Shares
in issue, which redemption will completely extinguish public Members’ rights as Members (including the right to receive further
liquidation distributions, if any); and.
(c) as promptly as reasonably possible following
such redemption, subject to the approval of the Company’s remaining Members and the Directors, liquidate and dissolve, subject in
each case to its obligations under Cayman Islands law to provide for claims of creditors and other requirements of Applicable Law.”
(ii) Article 49.8 of the Articles of Association
of the Company be deleted in its entirety and replaced as follows:
“In the event that any amendment is made
to the Articles:
(a) to modify the substance or timing of the Company’s
obligation to allow redemption in connection with a Business Combination or an amendment to these Articles prior thereto or redeem 100
percent of the Public Shares if the Company does not consummate a Business Combination within 36 months from the consummation of the IPO,
or such later time as the Members may approve in accordance with the Articles; or
(b) with respect to any other provision relating
to Members’ rights or pre-Business Combination activity,
each holder of Public Shares who is not the Sponsor,
a Founder, Officer or Director shall be provided with the opportunity to redeem their Public Shares upon the approval or effectiveness
of any such amendment at a per-Share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including
interest earned on the funds held in the Trust Account and not previously released to the Company to pay its taxes, divided by the number
of then outstanding Public Shares. The Company’s ability to provide such redemption in this Article is subject to the Redemption
Limitation.”
ANNEX B
PROPOSED AMENDMENT TO INVESTMENT MANAGEMENT
TRUST AGREEMENT
THIS AMENDMENT NO. 2 TO INVESTMENT MANAGEMENT TRUST
AGREEMENT (this “Amendment Agreement”), dated as of November 2, 2023, is made by and between Cactus Acquisition
Corp. 1 Limited, a Cayman Islands exempted company (the “Company”), and Continental Stock Transfer & Trust
Company, a New York limited purpose trust company (the “Trustee”).
WHEREAS, the parties hereto are parties to that
certain Investment Management Trust Agreement dated as of November 2, 2021, as amended on April 20, 2023 (the “Trust Agreement”);
WHEREAS, Section 1(i) of the Trust Agreement sets
forth the terms that govern the liquidation of the Trust Account established for the benefit of the Company and the Public Shareholders
under the circumstances described therein;
WHEREAS, Section 6(c) of the Trust Agreement provides
that Section 1(i) of the Trust Agreement may only be changed, amended or modified with the affirmative vote of at least sixty five percent
(65%) of the then outstanding shares of Ordinary shares and Class B ordinary shares, voting together as a single class;
WHEREAS, pursuant to an extraordinary general meeting
of the Company held on the date hereof, at least sixty five percent (65%) of the then outstanding shares of Ordinary Shares and Class
B Ordinary Shares, voting together as a single class, voted affirmatively to approve (i) this Amendment Agreement and (ii) a corresponding
amendment to the Company’s amended and restated memorandum and articles of association (the “Articles Extension”);
and
WHEREAS, each of the Company and the Trustee desires
to amend the Trust Agreement as provided herein concurrently with the effectiveness of the Articles Extension.
NOW THEREFORE, in consideration of the mutual agreements
contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending
to be legally bound hereby, the parties hereto agree as follows:
1. Definitions. Capitalized terms contained
in this Amendment Agreement, but not specifically defined herein, shall have the meanings ascribed to such terms in the Trust Agreement.
2. Amendments to the Trust Agreement.
(a) Effective as of the execution hereof, Section
1(i) of the Trust Agreement is hereby amended and restated in its entirety as follows:
“(i) Commence liquidation of the Trust Account
only after and promptly after (x) receipt of, and only in accordance with, the terms of a letter from the Company (“Termination
Letter”) in a form substantially similar to that attached hereto as either Exhibit A or Exhibit B, as applicable,
signed on behalf of the Company by its Chief Executive Officer or Chairman of the board of directors of the Company (the “Board”),
and in the case of Exhibit A, jointly signed by the Representative, and complete the liquidation of the Trust Account and distribute
the Property in the Trust Account, including interest (which interest shall be net of any taxes payable and, in the case of a Termination
Letter in a form substantially similar to that attached hereto as Exhibit B, less up to $100,000 of interest to pay dissolution
expenses), only as directed in the Termination Letter and the other documents referred to therein, or (y) upon the date which is the later
of (i) thirty-six (36) months after the closing of the Offering (or such earlier date as determined by the Board) and (ii) such later
date as may be approved by the Company’s shareholders in accordance with the Company’s amended and restated memorandum and
articles of association, if a Termination Letter has not been received by the Trustee prior to such date, in which case the Trust Account
shall be liquidated and dissolved in accordance with the procedures set forth in the Termination Letter attached as Exhibit B and
the Property in the Trust Account, including interest (which interest shall be net of any taxes payable and less up to $100,000 of interest
to pay dissolution expenses), shall be distributed to the Public Shareholders of record as of such date; provided, however,
that in the event the Trustee receives a Termination Letter in a form substantially similar to Exhibit B hereto, or if the Trustee
begins to liquidate the Property because it has received no such Termination Letter by the date specified in clause (y) of this Section
1(i), the Trustee shall keep the Trust Account open until twelve (12) months following the date the Property has been distributed
to the Public Shareholders.”
(b) Effective as of the execution hereof, Exhibit
B of the Trust Agreement is hereby amended and restated, in the form attached hereto, to implement a corresponding change to the foregoing
amendment to Section 1(i) of the Trust Agreement.
3. No Further Amendment. The parties hereto
agree that except as provided in this Amendment Agreement, the Trust Agreement shall continue unmodified, in full force and effect and
constitute legal and binding obligations of the parties thereto in accordance with its terms. This Amendment Agreement forms an integral
and inseparable part of the Trust Agreement. This Amendment Agreement is intended to be in full compliance with the requirements for an
amendment to the Trust Agreement as required by Section 6(c) and Section 6(d) of the Trust Agreement, and any defect in fulfilling such
requirements for an effective amendment to the Trust Agreement is hereby ratified, intentionally waived and relinquished by all parties
hereto.
4. References.
(a) All references to the “Trust Agreement”
(including “hereof,” “herein,” “hereunder,” “hereby” and “this Agreement”)
in the Trust Agreement shall refer to the Trust Agreement as amended by this Amendment Agreement; and
(b) All references to the “amended and restated
memorandum articles of association” in the Trust Agreement shall mean the Company’s amended and restated memorandum articles
of association as amended by the Articles Extension.
5. Governing Law. This Amendment Agreement
shall be governed by and construed and enforced in accordance with the laws of the State of New York, without giving effect to conflicts
of law principles that would result in the application of the substantive laws of another jurisdiction.
6. Counterparts. This Amendment Agreement
may be executed in any number of counterparts, each of which shall be deemed to be an original, but all such counterparts shall together
constitute one and the same instrument. Delivery of a signed counterpart of this Amendment Agreement by electronic transmission shall
constitute valid and sufficient delivery thereof.
[Signature Page Follows]
IN WITNESS WHEREOF, the parties have duly
executed this Amendment Agreement as of the date first written above.
| CONTINENTAL STOCK TRANSFER & TRUST COMPANY, as Trustee |
| |
| By: |
|
|
| |
Name: |
|
| |
Title: |
|
| |
|
| CACTUS ACQUISITION CORP. 1 LIMITED |
| |
| By: |
|
|
| |
Name: |
|
| |
Title: |
|
EXHIBIT B
Cactus Acquisition Corp. 1 Ltd.
4B Cedar Brook Drive
Cranbury, NJ 08512
[Insert date]
Continental Stock Transfer & Trust Company
One State Street, 30th Floor
New York, New York 10004
Attn: Francis Wolf and Celeste Gonzalez
| Re: | Trust Account — Termination Letter |
Dear Mr. Wolf and Ms. Gonzalez:
Pursuant to Section1(i) of the Investment Management
Trust Agreement between Cactus Acquisition Corp. 1 Limited (the “Company”) and Continental Stock Transfer &
Trust Company (the “Trustee”), dated as of November 2, 2021, as amended on April 20, 2023 and November 2, 2023
(the “Trust Agreement”), this is to advise you that the Company has been unable to effect a Business Combination
with a Target Business within the time frame specified in the Company’s amended and restated memorandum and articles of association,
as described in the Company’s Prospectus relating to the Offering. Capitalized terms used but not defined herein shall have the
meanings set forth in the Trust Agreement.
In accordance with the terms of the Trust Agreement,
we hereby authorize you to liquidate all of the assets in the Trust Account and to transfer the total proceeds into a segregated account
held by you on behalf of the Beneficiaries to await distribution to the Public Shareholders. The Company has selected [●] as the
effective date for the purpose of determining when the Public Shareholders will be entitled to receive their share of the liquidation
proceeds. You agree to be the Paying Agent of record and, in your separate capacity as Paying Agent, agree to distribute said funds directly
to the Company’s Public Shareholders in accordance with the terms of the Trust Agreement and the amended and restated memorandum
and articles of association of the Company. Upon the distribution of all the funds, net of any payments necessary for reasonable unreimbursed
expenses related to liquidating the Trust Account, your obligations under the Trust Agreement shall be terminated, except to the extent
otherwise provided in Section 1(i) of the Trust Agreement.
| Very truly yours, |
|
| |
|
| Cactus Acquisition Corp. 1 Limited |
|
| |
|
| By: |
|
|
| |
Name: |
|
| |
Title: |
|
| cc: |
Moelis & Company LLC, |
| |
Oppenheimer & Co. Inc. |
PRELIMINARY PROXY CARD — SUBJECT TO COMPLETION
Cactus
Acquisition Corp. 1 Ltd.
4B CEDAR BROOK DRIVE
CRANBURY, NJ, 08512
EXTRAORDINARY GENERAL MEETING OF THE COMPANY
NOVEMBER 2, 2023
YOUR VOTE IS IMPORTANT
FOLD AND DETACH HERE
Cactus
Acquisition Corp. 1 Ltd.
THIS PROXY IS SOLICITED BY THE BOARD OF DIRECTORS
FOR THE EXTRAORDINARY GENERAL MEETING OF THE COMPANY
TO BE HELD ON NOVEMBER 2, 2023
The undersigned, revoking any previous proxies
relating to these shares, hereby acknowledges receipt of the notice and proxy statement, dated October __, 2023, (the “Proxy
Statement”) in connection with the extraordinary general meeting of Cactus Acquisition Corp. 1 Ltd. (the “Company”)
and at any adjournments thereof (the “Meeting”) to be held at 9:00 a.m. Eastern time/ 3:00 p.m. local (Israeli) time
on November 2, 2023 at Meitar Law Offices, 16 Abba Hillel Road, 10th floor, Ramat Gan,
Israel 5250608, and via live webcast at https://www.cstproxy.com/cactusac/ext2023, or at such other time and at such other place
at which the Meeting may be adjourned or postponed, for the sole purpose of considering and voting upon the following proposals, and hereby
appoints Ofer Gonen and Stephen T. Wills, 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 ordinary shares of the Company registered in the name provided, held of record as of October
19, 2023, which the undersigned is entitled to vote at the Meeting and at any adjournments thereof, with all 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 the Proxy Statement.
THIS PROXY, WHEN EXECUTED, WILL BE VOTED IN
THE MANNER DIRECTED HEREIN. IF NO DIRECTION IS MADE, THIS PROXY WILL BE VOTED “FOR” EACH OF PROPOSAL NO. 1, PROPOSAL NO. 2
AND PROPOSAL NO. 3, CONSTITUTING THE ARTICLES EXTENSION PROPOSAL, THE TRUST EXTENSION PROPOSAL AND THE ADJOURNMENT PROPOSAL, RESPECTIVELY.
PLEASE MARK, SIGN, DATE AND RETURN THE PROXY
CARD PROMPTLY.
(Continued and to be marked, dated and signed
on reverse side)
Important Notice Regarding the Availability
of Proxy Materials for the
Extraordinary General Meeting, to be held on November 2, 2023:
The notice of meeting, the accompanying Proxy Statement
and the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 are available at https://www.cstproxy.com/cactusac/ext2023.
| THE BOARD OF DIRECTORS RECOMMENDS A VOTE “FOR” EACH OF PROPOSAL NO. 1, PROPOSAL NO. 2, AND, IF PRESENTED, PROPOSAL NO. 3. |
|
Please mark ☒ votes as indicated in this example |
| |
|
|
| Proposal No. 1 – Articles Extension Proposal |
|
FOR |
|
AGAINST |
|
ABSTAIN |
| A proposal to approve, by way of special resolution, an amendment to the Company’s amended and restated memorandum and articles of association in the form set forth in Annex A of the accompanying proxy statement, to extend the date by which the Company would be permitted to consummate an initial business combination from November 2, 2023 to November 2, 2024, as well as to permit the Board, in its sole discretion, to elect to wind up the Company’s operations on an earlier date, pursuant to the resolution set forth in Proposal No. 1 of the accompanying proxy statement. |
|
☐ |
|
☐ |
|
☐ |
| |
|
|
|
|
|
|
| Proposal No. 2 – Trust Extension Proposal |
|
FOR |
|
AGAINST |
|
ABSTAIN |
| A proposal to amend the Company’s investment management trust agreement, dated as of November 2, 2021 and amended on April 20, 2023, by and between the Company and Continental Stock Transfer & Trust Company, to extend the date by which the Company would be permitted to consummate a business combination from November 2, 2023 to November 2, 2024, or such earlier date as may be determined by the Board, in its sole discretion, pursuant to the resolution set forth in Proposal No. 2 of the accompanying proxy statement. |
|
☐ |
|
☐ |
|
☐ |
| |
|
|
|
|
|
|
| Proposal No. 3 – Adjournment Proposal |
|
FOR |
|
AGAINST |
|
ABSTAIN |
| A proposal to approve, by way of ordinary resolution, the adjournment of the Meeting to a later time, 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 No. 1 or Proposal No. 2, pursuant to the resolution set forth in Proposal No. 3 of the accompanying proxy statement. |
|
☐ |
|
☐ |
|
☐ |
Date: _______________, 2023
Signature
Signature (if held jointly)
Signature should agree with name printed hereon. If stock is 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.
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, THIS PROXY WILL BE VOTED “FOR” EACH OF PROPOSAL NO. 1, PROPOSAL NO. 2 AND PROPOSAL NO. 3. THIS PROXY
WILL REVOKE ALL PRIOR PROXIES SIGNED BY YOU.
Cactus Acquisition Corp 1 (NASDAQ:CCTSU)
Historical Stock Chart
From Oct 2024 to Nov 2024
Cactus Acquisition Corp 1 (NASDAQ:CCTSU)
Historical Stock Chart
From Nov 2023 to Nov 2024
