Correspondence 0001213900-23-063642 from Solidion Technology Inc. (STI) (CIK 0001881551) (STI)
Solidion Technology Inc. (STI) (CIK 0001881551)
Date: Aug. 4, 2023 · CIK: 0001881551 · Accession: 0001213900-23-063642
AI Filing Summary & Sentiment
File numbers found in text: 001-41323
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CORRESP
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filename1.htm
345
Park Avenue
New
York, NY
10154-1895
Direct
Main
Fax
212.407.4000
212.407.4000
212.407.4990
Via
Edgar
August 4, 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
July 10, 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 July
24, 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 July 10, 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 June 9, 2023
General
1. We
note your response to prior comment 3. Please further address the following;
● Revised
disclosure on page xii indicates 8,430,383 shares were redeemed, representing 73.31% of the
outstanding public shares, previously disclosed to be 12,473,000 shares. Please confirm
or revise the percentage of redeeming public shareholders.
● Revise
disclosure regarding the current number of outstanding public shares. In this regard,
we note apparent inconsistencies both in the numbers disclosed (i.e., 4,043,117
and 3,919,617 public shares), and with respect to the foregoing numbers; please reconcile.
● Identify
the percentage of public shareholders required to approve the proposals on page ix, or clearly
state if no approval of public shareholders is required.
● Disclosure
on page 9 indicates that G3’s ownership of 83.2% includes 20.2% related to the earnout, while
the table on page 10 shows G3’s ownership of 78.9-82.6% with a footnote indicating earnout
shares are not included. Disclosure regarding sponsor and public shareholder percentages
on pages 9 and 10 also appears inconsistent. Please reconcile.
Response: The Company acknowledges the Staff’s
comment and has revised the disclosure throughout the Amended Proxy Statement in accordance with the Staff’s comment.
2.
We
note revised disclosure that refers to an assumed maximum redemption of 12.35 million public shares, with payment of $127.2
million from the trust account (e.g., pages xii, 38, and 158). Please further revise to reflect the current number of
outstanding public shares and trust account balance. Revise as appropriate your assessment of the combined company’s working
capital and capital expenditure requirements in light of redemptions to date. Clarify any assumptions regarding the $70 million
in additional equity financing which the parties have agreed to use “commercially reasonable best efforts” to obtain within
30 days of closing.
Response:
The Company acknowledges the Staff’s comment and has revised
its disclosures throughout the Amended Proxy Statement to reflect the current number of outstanding public shares and trust account balance and related
disclosures.
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3.
We
note your response to prior comment 8. However, the revisions on page B-6 still appear inconsistent with your disclosure
on pages 59-60, which provides in relevant part that (i) your exclusive forum provision would not apply to suits brought to enforce
a duty or liability created by the Exchange Act and (ii) the federal district courts of the United States will be the exclusive
forum for resolving any complaint asserting a cause of action arising under the Securities Act. Please conform your certificate
of incorporation for consistency. We further note that the foregoing disclosure refers to your by-laws (in addition
to the certification of incorporation), although the by-laws do not appear to contain any exclusive forum provisions; please revise
accordingly.
Response:
The Company acknowledges the Staff’s comment and has revised
the disclosure on pages 59, 60 and B-6 of the Amended Proxy Statement in accordance with the Staff’s comment.
4.
We
note a number of blanks and brackets throughout your registration statement. Please revise to provide the incomplete information,
with the exception of the shareholder meeting date and related dates, which may be identified in a post-effective amendment.
Response:
The Company acknowledges the Staff’s comment and has revised
the disclosure throughout the Amended Proxy Statement in accordance with the Staff’s comment.
Proposal
No. 1--The Business Combination Proposal
Honeycomb’s
Financial Projections, page 89
5.
We
note that the investor presentation filed with your Form 8-K on July 14, 2023, indicates on page 32 that “By 2026,
80% of battery materials and components made by HBC will comply with the [Inflation Reduction Act].” Please revise your
disclosure relating to the Inflation Reduction Act to more specifically describe the “Made in America” mandates, your assumptions
with respect thereto, and the material obstacles to overcome.
Response:
The Company acknowledges the Staff’s comment and has revised
the disclosure on page 159 of the Amended Proxy Statement in accordance with the Staff’s comment.
Information
about Honeycomb, page 144
6.
We
note that your investor presentation includes detailed information that does not appear to be included in your proxy statement.
For example, and without limitation, we note (i) product specifications included on pages 15-16 and 19-20 of the investor presentation,
(ii) information regarding to the start of production and phased production capacity, including expansion and capital expenditures
plans, on pages 18-19 and 33-37, and (iii) references to a proprietary battery and related distribution agreement on page 18.
Please revise this section to include information consistent with that provided in your investor presentation
Response: The
Company acknowledges the Staff’s comment and has revised the disclosure on pages 153, 155 and 157-161 of the Amended Proxy
Statement in accordance with the Staff’s comment.
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Notes
to the Unaudited Pro Forma Condensed Combined Financial Statements
Note
3(F) , page 179
7.
We
note from your response to our prior comment 9 that you considered the equity classification conditions in ASC 815-40-25 and concluded
that all of them were met and therefore, the Earnout Share arrangement is appropriately classified in equity. However, in addition
to the issuance of shares based on VWAP during certain time periods, we note that there is a change of control provision, and the
VWAP is subject to “any adjustment pursuant to the Merger Agreement.” In light of these additional provisions,
please provide us more detail as to how you evaluated the guidance in ASC 815-40-15, and in particular how you evaluated the settlement
provisions (step two of the indexation guidance) in ASC 815-40-15-7C. As part of your response please tell us whether the change
of control provision results in an input into a “fixed-for-fixed” valuation model. Additionally, please explain
to us why the adjustment to recognize the Earnout Shares would have no net impact on any pro forma financial statement line item as
it would simultaneously increase and decrease additional paid-in capital. We would expect that the offsetting entry to the $139
million fair value would be reflected in the same manner as if you declared a pro rata
dividend
to your common shareholders. Please advise or revise accordingly.
Response: The
Company acknowledges the Staff’s comment and advises that the Company considered the change of control provision with regard
to ASC 815-40-15-7C and concluded it is an input into a “fixed-for-fixed” valuation model based on the following
analysis.
The Merger
Agreement provides that the Company will issue to the Honeycomb shareholders aggregate consideration of 70,000,000 shares of the Combined
Company’s common stock at the effective time of the Merger Agreement, plus up to an additional 22,500,000 shares of the Combined
Company’s common stock (the “Earnout Shares”) upon the occurrence of the achievement of certain volume weighted average
prices (“VWAP”) of its common stock. Further, upon a change of control of the Combined Company the Earnout Shares are due
Honeycomb shareholders but subject to (and only to the extent that) the valuation of the Combined Company’s common stock implied
by such change of control transaction meeting the VWAP.
In evaluating the change of control provision under
step two, the Company determined that the change of control provision includes a stock price element and that the manner in which the
change in control price is determined and VWAP are both reasonable means in which to measure the fair value of the Company’s stock
as the change of control price is based on the implied value of the change of control transaction and as such the change of control provision
is considered indexed to the Company’s own stock.
Further,
the Company has revised the presentation of the earnout shares adjustment in the pro forma financial information.
Certain
Relationships and Related Party Transactions, page 202
8.
We
note your revised disclosure in response to prior comment 5. Please further revise this section to update information as of
the most recent practicable date. Ensure consistency with disclosure elsewhere regarding the interests of the sponsor and its
affiliates in the business combination.
Response:
The Company acknowledges the Staff’s comment and has revised
the disclosure on page 205 of the Amended Proxy Statement in accordance with the Staff’s comment
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Please
do not hesitate to contact Alex Weniger-Araujo at (212) 407-4063 of Loeb & Loeb LLP with any questions or comments regarding
this letter.
Sincerely,
/s/
Alex Weniger-Araujo
Alex Weniger-Araujo
cc:
Jaymes
Winters
Nubia
Brand International Acquisition Corp.
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