Trugolf Holdings, Inc. current report, 26 October 2021

Business Context and Reporting Period

This Form 8-K was filed by Deep Medicine Acquisition Corp., not Trugolf Holdings, Inc., and reports events occurring primarily on October 26 and October 29, 2021. The filing concerns the company’s initial public offering (IPO) and related financing activities as a special purpose acquisition company (SPAC), rather than operating results.

The filing states that the company completed its IPO on October 29, 2021, although the report date is October 26, 2021. References in the filing to October 29, 2020 for certain issuances appear inconsistent with the surrounding 2021 transaction dates.

Key Financial and Capitalization Metrics

MetricAmount or terms
Public units issued12,650,000 units, including 1,650,000 units from the fully exercised over-allotment option
IPO price and gross proceeds$10.00 per unit; $126.5 million gross proceeds
Private placement units519,500 units sold to the sponsor and I-Bankers at $10.00 per unit
Private placement gross proceeds$5.195 million
Trust account funding$127.765 million of net IPO and private placement proceeds deposited with American Stock Transfer & Trust Company, LLC
Representative’s shares101,200 shares of Class A common stock issued to I-Bankers
Representative’s warrantsWarrants to purchase 632,500 Class A shares at $12.00 per share
Class B common stock3,162,500 shares; none subject to forfeiture following full exercise of the over-allotment option

The filing does not provide operating revenue, profit, cash flow, margins, or conventional corporate debt metrics. Liquidity primarily consists of the trust account and funds available for permitted corporate purposes.

Material Changes and Transaction Terms

  • The company entered into an underwriting agreement, business combination marketing agreement, rights agreement, sponsor and officer letter agreement, investment management trust agreement, registration rights agreement, and private placement purchase agreement.
  • Each public unit consists of one Class A common share and one right to receive one-tenth of a Class A share upon completion of an initial business combination.
  • The company amended and restated its certificate of incorporation on October 26, 2021.
  • I-Bankers received transfer-restricted representative’s shares and warrants. The representative’s shares carry waived redemption and liquidation rights under specified circumstances.
  • The private placement was conducted under the Section 4(a)(2) exemption from registration, with no underwriting discounts or commissions reported for that sale.

Outlook, Risks, Contingencies, and Unusual Items

The trust funds are restricted and generally cannot be released until the earliest of completion of an initial business combination, certain stockholder-approved amendments followed by redemptions, or redemption of public shares if the company fails to complete a business combination within 12 months of the IPO closing. The filing states that the period may be extended to up to 18 months under the terms described in the registration statements.

Interest on trust-account funds may be used for taxes and up to $50,000 of dissolution expenses. If no qualifying business combination is completed within the applicable period, public shares are generally subject to redemption, subject to applicable law.

The filing provides no specific target, transaction timetable beyond the stated deadline, financial guidance, or management forecast. The principal risks are failure to complete a business combination, potential dilution from rights, sponsor securities and representative warrants, and restrictions on access to trust-account funds.

Facts Investors Should Verify

  • Verify that this filing belongs to Deep Medicine Acquisition Corp. rather than Trugolf Holdings, Inc.
  • Reconcile the stated October 26 report date with the October 29 IPO closing date.
  • Review the registration statements and trust agreement for the precise redemption deadline and any extension provisions.
  • Assess dilution from 12,650,000 public units, 519,500 private placement units, rights, 3,162,500 Class B shares, representative’s shares, and representative’s warrants.
  • Confirm the apparent date errors referring to October 29, 2020 for securities issued in connection with the 2021 IPO.
  • Determine whether a subsequent filing identifies a business combination or changes the trust-account, redemption, or liquidation terms.