Business context and reporting period
Entity mismatch: The request identifies Alti Global, Inc., but the supplied Form 10-Q is for Cartesian Growth Corporation, a Cayman Islands SPAC. This summary reflects the filing provided, not Alti Global.
The unaudited quarter ended March 31, 2021. Cartesian was formed to pursue a business combination, had not begun operating activities, and reported no operating revenue. It completed its IPO on February 26, 2021.
Financial results and liquidity
| Metric | Three months ended March 31, 2021 / balance at March 31, 2021 |
|---|---|
| Revenue | None reported |
| Operating costs and operating loss | $87,220 |
| Net loss | $4,901,560; basic and diluted loss per share of $0.51 |
| Key non-operating expenses | $849,993 offering costs allocated to warrants; $3,097,200 excess of private warrant fair value over proceeds; $874,300 warrant fair-value loss |
| Cash and prepaid expenses | $895,838 cash and $478,373 prepaid expenses; total current assets $1,374,211 |
| Trust assets | $345,007,153, primarily U.S. Treasury money market funds |
| Warrant liabilities | $27,879,000, measured using Level 3 fair-value inputs |
| Deferred underwriting fee | $12,075,000, payable only if a business combination is completed |
| Ordinary shares subject to possible redemption | $301,417,916, representing 30,141,792 shares |
| Total shareholders’ equity | $5,000,009 |
| Cash flow | $569,102 used in operating activities; $345,000,000 invested in the Trust Account; $346,464,940 provided by financing activities |
The company raised $345 million from 34.5 million IPO units and $8.9 million from private warrants. Total IPO transaction costs were $19,540,060. Trust funds are generally unavailable for operating needs before a business combination. No long-term debt was reported; the sponsor promissory note was repaid, and no working-capital loans were outstanding.
Changes versus prior period
Compared with December 31, 2020, the company’s assets and liabilities primarily reflect the February IPO and private placement, trust funding, and recognition of warrant liabilities. The quarter’s $4.9 million net loss has no comparable operating-period result presented in this filing. The company also restated its February 26, 2021 balance sheet after changing warrant accounting: warrant liabilities increased by $27.0 million, offset by a reduction in Class A shares classified as temporary equity; total shareholders’ equity was unchanged.
Outlook, risks, and unusual items
- The company had until February 26, 2023 to complete an initial business combination or, subject to its governing documents, redeem public shares and liquidate. Management expected to fund its search primarily with cash outside the trust, but noted that actual search and transaction costs could exceed available working capital and additional financing might be needed.
- Management reported a material weakness in internal control over financial reporting related to warrant accounting; disclosure controls were concluded to be ineffective as of March 31, 2021. Management planned enhanced accounting analyses and consultation with outside professionals, but provided no assurance remediation would succeed.
- Warrants are derivative liabilities remeasured each reporting period. Their non-cash fair-value changes could materially affect reported earnings and fluctuate with assumptions and market inputs.
- Management said COVID-19 could adversely affect the company’s financial position, operations, or target search, but the specific impact was not determinable.
- The sponsor’s trust-account indemnity may not be enforceable or fully funded, potentially reducing funds available for a business combination or redemptions. The filing reported no legal proceedings and no known litigation or dispute arising from the control weakness as of the filing date.
Important facts for investors to verify
- Confirm the filing belongs to the intended company: the supplied document is Cartesian Growth Corporation, not Alti Global, Inc.
- Review the warrant-accounting restatement, the Level 3 valuation assumptions, and the status and effectiveness of the control-remediation plan.
- Verify the availability and permitted use of trust funds, the $12.075 million deferred underwriting fee, redemption terms, and the February 2023 combination deadline.
- Assess whether the approximately $0.9 million of unrestricted cash is adequate for the search and transaction costs, and whether additional financing may be required.