Attn:
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Tonya K. Aldave
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John Dana Brown
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Re:
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Pagaya Technologies Ltd.
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Amendment No. 1 to the Registration Statement on Form F-1
Filed August 30, 2022
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File No. 333-266228
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1. |
It appears that the price of your common stock has fluctuated significantly in the last several months after completion of the merger transaction. Please revise your disclosure to address high price volatility,
potential causes of such volatility, if known, and add a separately captioned risk factor to describe the risk to investors. In addition, on the prospectus cover page, disclose the following:
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describe the recent price volatility in your stock and briefly disclose any known risks of investing in your stock under these circumstances;
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for comparison purposes, disclose the market price of your common stock prior to the recent price volatility in your stock; and
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describe any recent change in your financial condition or results of operations, such as your earnings, revenues or other measure of company value that is consistent with the recent change in your stock price. If
no such change to your financial condition or results of operations exists, disclose that fact.
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2. |
Revise your prospectus to highlight any differences in the current trading price, the prices that the Sponsor, private placement investors, PIPE investors, and other selling securityholders acquired their shares
and warrants, and the price at which the public securityholders acquired their shares and warrants. Disclose, if true, that while the Sponsor, private placement investors, PIPE investors, and other selling securityholders may experience a
positive rate of return based on the current trading price, the public securityholders may not experience a similar rate of return on the securities they purchased due to differences in the purchase prices and the current trading price.
Please also disclose the potential profit the selling securityholders will earn based on the current trading price. Lastly, please include appropriate risk factor disclosure.
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3. |
Please revise to update your disclosures throughout the filing and address areas that appear to need updating or that present inconsistencies. Non-exclusive examples of areas where disclosure should be updated
are as follows:
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statistical data under the "Our Market Opportunity" section on page 86, which currently provides data as of Q4 2019 and Q4 2020;
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disclosure related to the absence of a public trading market in the section titled "Fair Value of Pagaya Ordinary Shares" on page 81; and
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disclosure on top of page 88 and under the "our team" subheading on page 92 regarding the number of specialists and employees, which currently provides data as of December 31, 2021.
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4. |
For each of the shares and warrants being registered for resale, disclose the price that the selling securityholders paid for such shares and warrants.
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5. |
If the warrants are out the money, please disclose the likelihood that warrant holders will not exercise their warrants and provide similar disclosure in the prospectus summary, risk factors, MD&A and use of
proceeds section and disclose that cash proceeds associated with the exercises of the warrants are dependent on the stock price. As applicable, describe the impact on your liquidity and update the discussion on the ability of your company to
fund your operations on a prospective basis with your current cash on hand.
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6. |
Please disclose the number of shares representing your public float. State, if true, that the shares being registered for resale exceed your public float and state the percentage of your public float that the
shares being offered for resale represents. We also note that all of the shares being registered for resale were purchased by the selling securityholders for prices considerably below the current market price of the Class A common stock.
Highlight the significant negative impact sales of shares on this registration statement could have on the public trading price of the Class A common stock. Also disclose the number of shares of Class A common stock that were redeemed in
connection with your business combination.
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7. |
Include an additional risk factor highlighting the negative pressure potential sales of shares pursuant to this registration statement could have on the public trading price of the Class A common stock. To
illustrate this risk, disclose the purchase price of the securities being registered for resale and the percentage that these shares currently represent of the total number of shares outstanding. Also disclose that even if the current trading
price falls to or significantly below the SPAC IPO price, the private investors have an incentive to sell because they will still profit on sales because they purchased their shares at a lower price than the public investors.
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8. |
Please expand your discussion here to reflect the fact that this offering involves the potential sale of a substantial portion of shares for resale and discuss how such sales could impact the market price of the
company’s common stock.
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Sincerely,
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/s/ Skadden, Arps, Slate, Meagher & Flom LLP
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Skadden, Arps, Slate, Meagher & Flom
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cc:
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Richmond Glasgow, Pagaya Technologies Ltd.
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