Correspondence 0001213900-23-038685 from Solidion Technology Inc. (STI) (CIK 0001881551) (STI)
Solidion Technology Inc. (STI) (CIK 0001881551)
Date: May 11, 2023 · CIK: 0001881551 · Accession: 0001213900-23-038685
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File numbers found in text: 001-41323
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CORRESP
1
filename1.htm
345
Park Avenue
New
York, NY
10154-1895
Direct
Main
Fax
212.407.4000
212.407.4000
212.407.4990
Via
Edgar
May 11,
2023
Division
of Corporation Finance
U.S. Securities & Exchange Commission
100
F Street, NE
Washington,
D.C. 20549
Attention:
Dale
Welcome
Claire
Erlanger
Sarah
Sidwell
Jennifer
Angelini
Re:
Nubia Brand International Corp.
Preliminary Proxy Statement on Schedule 14A Filed March 20, 2023
File No. 001-41323
Dear
Mr. Welcome:
On
behalf of Nubia Brand International Corp. (the “Company”), we are hereby responding to the letter, dated April
13, 2023 (the “Comment Letter”), from the staff (the “Staff”) of the U.S. Securities
and Exchange Commission (the “Commission”), regarding the Company’s preliminary proxy statement on Schedule
14A, filed on March 20, 2023 (the “Proxy Statement”). Concurrently with the submission of this letter, the
Company is submitting its amendment to the Proxy Statement (the “Amended Proxy Statement”) via EDGAR to the
Commission for review in accordance with the procedures of the Commission.
The
Company has responded to all of the Staff’s comments by revising the Proxy Statement to address the comments, by providing an explanation
if the Company has not so revised the Proxy Statement, or by providing supplemental information as requested. The Staff’s comments
are repeated below in bold and followed by the Company’s response. We have included page references to the Amended Proxy Statement
where the language addressing a particular comment appears. Terms used but not otherwise defined herein have the meanings set forth in
the Amended Proxy Statement. The changes reflected in the Amended Proxy Statement include those made in response to the Staff’s
comments as well as other updates.
Preliminary
Proxy Statement on Schedule 14A, filed March 20, 2023 General
1. Please
provide your analysis why the proposed issuance of your common stock as consideration for
the business combination does not require registration under the Securities Act.
Response: The Company respectfully acknowledges the
Staff’s comment and advises the Staff that G3 is the sole shareholder of Honeycomb. Pursuant to C&DI 239.13, an acquiring company
may seek a commitment from principal security holders of a target company to vote in favor of a business combination transaction, and
the Staff has not objected to the registration of offers and sales of the acquiring company’s securities where:
(i) the agreement involves only executive
officers, directors, affiliates, founders and their family members, and holders of 5% or more of the voting equity securities of the company
being acquired;
(ii) the persons signing the agreements
collectively own less than 100% of the voting equity of the target; and
(iii) votes will be solicited from shareholders
of the company being acquired who have not signed the agreements and would be ineligible to purchase in a private offering.
C&DI 239.13 further states that the Staff has objected
to the registration on Form S-4 of the offer and sale of securities if, prior to such registration, the persons who entered
into such agreement also deliver written consents approving the business combination transaction. G3, which owns 100% of Honeycomb’s
voting securities, is the only party that executed a transaction support agreement in connection with the transaction and no additional
votes will be solicited as there are no other shareholders. Under SEC guidance (C&DI 239.13), G3 is deemed to have already accepted
the offer to receive Nubia shares in exchange for their shares of Honeycomb common stock. As such, those shares cannot be registered on
Form S-4.
2. We
note disclosure on page 155 regarding the tax lien placed by the Internal Revenue Service
on the property of Global Graphene Group, Inc. (“G3”), including the assets to
be contributed to the combined company. Please disclose whether and how this tax lien will
affect the business combination, together with appropriate risk factor disclosure.
Response: The Company acknowledges the Staff’s
comment and has revised the disclosure on pages 64 and 180 in accordance with the Staff’s comment.
3. We
note your disclosure that G3 will hold 81.8% of the combined company’s shares, and
that G3 and the sponsor will have substantial control over the combined company after the
business combination. Please disclose on the proxy statement cover and in the summary (i)
the percent of voting power that G3 will control after the business combination, (ii) whether
you will be considered to be a controlled company, and (iii) whether you intend to take advantage
of the controlled company exemptions under the Nasdaq rules. Include related risk factor
disclosure as appropriate.
Response: The Company respectfully acknowledges the Staff’s comment and
has revised the disclosure on the cover page and page 2 of the Amended Proxy Statement to reflect the expectation that G3 will hold approximately
81.8% of the voting power of the combined company’s common stock upon the closing and to clarify that while the Company will be
a “controlled company” under the corporate governance rules of The Nasdaq Stock Market LLC, it does not currently expect to
rely upon the “controlled company” exemptions. The Company has included the appropriate risk factor on page 55 of the Amended
Proxy Statement.
4. Please
include disclosure regarding G3’s management and ownership in an appropriate place
in the proxy statement. To the extent that G3 is managed or owned by related parties of the
combined company, include risk factor disclosure regarding potential conflicts of interest
and related risks to the combined company and public shareholders.
Response: The Company respectfully acknowledges the
Staff’s comment and has revised the disclosure on pages 37 and 142 of the Amended Proxy Statement in accordance with the Staff’s
comment.
5. We
note disclosure regarding related agreements (pages 7-8), amended registration rights agreement
(page 48), transition agreement (page 77), and patent assignment (page A-74). Please ensure
all material agreements, complete with any schedules or exhibits thereto, are filed with
your proxy statement and listed in the table of contents.
Response: The Company respectfully acknowledges the Staff’s comment and
has revised the Amended Proxy Statement in accordance with the Staff’s comment.
6. With
a view toward disclosure, please tell us whether your sponsor is, is controlled by, or has
substantial ties with a non-U.S. person. Please also tell us whether anyone or any entity
associated with or otherwise involved in the transaction, is, is controlled by, or has substantial
ties with a non-U.S. person. If so, also include risk factor disclosure that addresses how
this fact could impact your ability to complete your initial business combination. For instance,
discuss the risk to investors that you may not be able to complete an initial business combination
with a U.S. target company should the transaction be subject to review by a U.S. government
entity, such as the Committee on Foreign Investment in the United States (CFIUS), or ultimately
prohibited. Further, disclose that the time necessary for government review of the transaction
or a decision to prohibit the transaction could prevent you from completing an initial business
combination and require you to liquidate. Disclose the consequences of liquidation to investors,
such as the losses of the investment opportunity in a target company, any price appreciation
in the combined company, and the warrants, which would expire worthless.
Response: The Company respectfully acknowledges the Staff’s comment and
has revised the disclosure on page 64 of the Amended Proxy Statement in accordance with the Staff’s comment.
7. The
definition of “Honeycomb” on page iii refers solely to Honeycomb Battery Company,
LLC, yet disclosure elsewhere indicates G3 will contribute its battery business, consisting
of two subsidiaries (Honeycomb and Angstron Energy Company, Inc.) and certain allocated assets,
liabilities, and/or expenses of G3. Please revise to clarify whether references to “Honeycomb”
throughout the proxy statement refer to the subsidiary or the spun-off battery business,
for instance consistent with the definition on page 123.
Response: The Company respectfully acknowledges the
Staff’s comment and has revised the disclosure on pages ii and iii of the Amended Proxy Statement, as well as other references
to the “Combined Company,” “HBC” and “Honeycomb,” in accordance with the Staff’s comment.
Questions
and Answers about the Proposals
Q.
What vote is required to approve the proposals presented at the special meeting?, page ix
8. Please
revise to disclose the number and percentage of shares held by public shareholders that is
required to establish a quorum and approve each proposal, clearly stating if none are required.
In this regard, we note disclosure on page xi that the sponsor and the insiders have agreed
to vote founder shares and any public shares held by them in favor of the proposals.
Response: The Company respectfully acknowledges the Staff’s comment and
has revised the disclosure on page ix of the Amended Proxy Statement in accordance with the Staff’s comment.
2
Summary
of the Proxy Statement, page 1
9. We
note disclosure that “G3 is in the process of converting Honeycomb into an independently
operated company.” Please revise to clearly describe the material steps involved in
this process and the timing thereof, including when completion is expected in relation to
the shareholder meeting and other key dates.
Response: The Company acknowledges the Staff’s comment and has revised
the disclosure on pages 2 and 175 in accordance with the Staff’s comment.
10. We
note your disclosures that “all battery related patents and patent applications held
by [G3], of which there are in excess of 520,” will be transferred to Honeycomb and
that “Honeycomb relies heavily on owned intellectual property.” However, Section
4 of the Contribution Agreement contemplates that Honeycomb will receive a non-exclusive
license to the G3 Special Patents, and Section 2(b)(i) of the Supply and License Agreement
provides a non-exclusive license under the G3 Intellectual Property for specified purposes.
Please revise your disclosure to clarify Honeycomb’s intellectual property ownership
in light of these licensing arrangements.
Response: The Company acknowledges the Staff’s comment and has revised
the disclosure on pages 2, 8, 78 and 156 in accordance with the Staff’s comment.
11. Disclosure
indicating that the business combination will not be consummated if Nubia has net tangible
assets of less than $5,000,001 (for example, on pages 11, 62, 91, and elsewhere) appears
inconsistent with the description of the NTA amendment proposal on page 100. Please reconcile
or explain.
Response: The Company respectfully acknowledges the Staff’s comment and
has revised the disclosure throughout the Amended Proxy Statement to reflect that if the NTA amendment proposal is approved, the Company
will not be required to have net tangible assets of at least $5,000,000 in order to consummate a business combination.
Conditions
to Closing, page 6
12. Please
clearly disclose all material conditions to closing, revising the reference to “customary
closing conditions including” accordingly.
Response: The Company respectfully acknowledges the Staff’s comment and
has revised the disclosure on pages 6 and 76 of the Amended Proxy Statement in accordance with the Staff’s comment.
Impact
of the Business Combination on the Combined Company’s Public Float, page 8
13. Please
revise to disclose all possible sources and extent of dilution that shareholders who elect
not to redeem their shares may experience in connection with the business combination. Provide
disclosure of the impact of each significant source of dilution (including the amount of
equity held by founders, the “earn-out” shares, and any convertible securities,
including public warrants retained by redeeming shareholders and private warrants), at each
of the redemption levels detailed in your sensitivity analysis (i.e., minimum, maximum,
and interim redemption levels), including any needed assumptions.
Response:
The Company respectfully acknowledges the Staff’s comment and
has revised the disclosure on page 8 of the Amended Proxy Statement in accordance with the Staff’s comment.
14. Please
disclose the sponsor and its affiliates’ total potential ownership interest in the
combined company, assuming exercise and conversion of all securities, including private warrants.
Response:
The Company respectfully acknowledges the Staff’s comment and