S-4/A
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As filed with the Securities and Exchange Commission on April 1, 2022
Registration
No. 333-262707
 
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
AMENDMENT NO. 1
to
FORM
S-4
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
 
 
DYNAMICS SPECIAL PURPOSE CORP.
(Exact name of Registrant as specified in its charter)
 
 
 
Delaware
 
6770
 
86-2437900
(State or other jurisdiction of
incorporation or organization)
 
(Primary Standard Industrial
Classification Code Number)
 
(I.R.S. Employer
Identification No.)
2875 El Camino Real
Redwood City, California, 94061
United States of America
Telephone: (408)
212-0200
(Address, including zip code and telephone number, including area code, of Registrant’s principal executive offices)
 
 
Mostafa Ronaghi, Chief Executive Officer
c/o Dynamics Special Purpose Corp.
2875 El Camino Real
Redwood City, California, 94061
United States of America
Telephone: (408)
212-0200
(Name, address, including zip code, and telephone number, including area code, of agent for service)
 
 
Copies to:
Alan F. Denenberg
Davis Polk & Wardwell LLP
1600 El Camino Real
Menlo Park, CA 94025
Telephone: (650)
752-2000
 
Jocelyn M. Arel
Maggie Wong
Michael R. Patrone
Goodwin Procter LLP
620 Eighth Avenue
New York, NY 10018
Telephone: (212)
813-8800
 
 
Approximate date of commencement of proposed sale of the securities to the public:
As soon as practicable after this Registration Statement is declared effective and all other conditions to the transactions contemplated by the Business Combination Agreement described in the enclosed proxy statement/prospectus have been satisfied or waived.
If the securities being registered on this Form are being offered in connection with the formation of a holding company and there is compliance with General Instruction G, check the following box.  ☐
If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.  ☐
If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated
filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in
Rule 12b-2
of the Exchange Act.
 
Large accelerated filer      Accelerated filer  
       
Non-accelerated filer      Smaller reporting company  
       
         Emerging growth company  
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act.  
If applicable, place an X in the box to designate the appropriate rule provision relied upon in conducting this transaction:
Exchange Act
Rule 13e-4(i)
(Cross-Border Issuer Tender Offer)  ☐
Exchange Act
Rule 14d-1(d)
(Cross-Border Third-Party Tender Offer)  ☐
The Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until the Registration Statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a), may determine.
 
 
 
 

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The information in this preliminary proxy statement/prospectus is not complete and may be changed. These securities may not be issued until the registration statement filed with the U.S. Securities and Exchange Commission is effective. This preliminary proxy statement/prospectus does not constitute an offer to sell or a solicitation of offers to buy these securities in any jurisdiction in which such offer or sale is not permitted.
 
PRELIMINARY PROXY STATEMENT/PROSPECTUS — SUBJECT TO COMPLETION, DATED     , 2022
PROXY STATEMENT FOR SPECIAL MEETING OF
DYNAMICS SPECIAL PURPOSE CORP.
PROSPECTUS FOR 26,000,000 SHARES OF CLASS A COMMON STOCK
 
 
All of the members of the board of directors of Dynamics Special Purpose Corp., a Delaware corporation (“DYNS”), voting on the transaction approved the Business Combination Agreement, dated as of December 19, 2021 (as amended from time to time, including as amended on February 12, 2022 by Amendment No. 1 to Business Combination Agreement, the “Business Combination Agreement”), by and among DYNS, Explore Merger Sub, Inc., a Delaware corporation and wholly-owned subsidiary of DYNS (“Merger Sub”), and Senti Biosciences, Inc., a Delaware corporation (“Senti”), pursuant to which Merger Sub will merge with and into Senti, with Senti surviving as a wholly-owned subsidiary of DYNS (the “Business Combination”). In connection with the consummation of the Business Combination, DYNS will change its corporate name to “Senti Biosciences, Inc.” In this proxy statement/prospectus, when we refer to “Senti,” we mean Senti Biosciences, Inc. prior to the consummation of the Business Combination, and when we refer to “New Senti” or the “Combined Company” we mean DYNS, under its new corporate name after the consummation of the Business Combination.
At the effective time of the Business Combination (the “Effective Time”), (i) each outstanding share of Senti common stock will be cancelled and converted into the right to receive a number of shares of Class A Common Stock equal to the Exchange Ratio (as defined in this proxy statement/prospectus), (ii) each outstanding share of Senti preferred stock will be cancelled and converted into the right to receive a number of shares of Class A Common Stock equal to (A) the aggregate number of shares of Senti common stock that would be issued upon conversion of the shares of Senti preferred stock based on the applicable conversion ratio immediately prior to the Effective Time, multiplied by (B) the Exchange Ratio, and (iii) each outstanding Senti option (whether vested or unvested) will be converted into an option to purchase a number of shares of Class A Common Stock equal to (A) the number of shares of Senti common stock subject to such option immediately prior to the Effective time, multiplied by (B) the Exchange Ratio, at an exercise price per share equal to the current exercise price per share for such option divided by the Exchange Ratio; in each case, rounded down to the nearest whole share, and rounded up to the nearest whole cent in the case of the exercise price of the Senti options. Holders of shares of Senti common stock and Senti preferred stock may also be eligible to receive up to an aggregate of 2,000,000 shares of Class A Common Stock (the “Contingency Consideration,” which would be common stock of New Senti) based on the share price of New Senti’s common stock following the Business Combination or, in some circumstances, upon a change of control of New Senti. See the section titled “
Proposal 1: The Business Combination Proposal
” for further information.
Based on an assumed closing date of              2022 for the Business Combination, the Exchange Ratio is approximately 0.1953. Based on this Exchange Ratio, the total number of shares of Class A Common Stock expected to be issued at the Effective Time in connection with the Business Combination (not including shares that will be issuable upon exercise of outstanding stock options) is approximately 22,916,991 shares and, assuming that (i) no additional DYNS shares are issued prior to the Effective Time, (ii) there is no exercise of any options to purchase Class A Common Stock that will be outstanding immediately following the Business Combination, (iii) no shares are issued in connection with the Contingency Consideration, and (iv) no shares are issued in connection with the Incentive Plan or the ESPP (each as defined in this proxy statement/prospectus) following the Business Combination, these shares are expected to represent between approximately 38.8% and 51.9% of the issued and outstanding shares of Class A Common Stock (which would be New Senti common stock) and voting power in New Senti immediately following the closing of the PIPE Investment (as defined in this proxy statement/prospectus) and the Business Combination. These percentages assume, at the low end of the range, that no redemptions from our Trust Account (as defined in this proxy statement/prospectus) occur, and, at the high end of that range, that maximum redemptions from our Trust Account occur, and also that no shares of Class A Common Stock subject to Non-Redemption Agreements (as defined in this proxy statement/prospectus) as at the date of this proxy statement/prospectus are redeemed. Please see the section of this proxy statement/prospectus entitled
“Unaudited Pro Forma Condensed Combined Financial Information”
for further information regarding what constitutes a “maximum redemption” scenario.
Subject to the same assumptions set forth in the preceding paragraph, and also assuming that 965,728 Founder Shares (as defined in this proxy statement/prospectus) are forfeited by the Sponsor (as defined in this proxy statement/prospectus) and cancelled, with certain DYNS public stockholders concurrently being issued an equivalent number of shares of Class A Common Stock in connection with the Non-Redemption Agreements (as defined in this proxy statement/prospectus), DYNS’s public stockholders are expected to hold between 40.6% and 20.5% of the issued and outstanding common stock and voting power in New Senti. These percentages assume, at the low end of the range, that no redemptions from our Trust Account occur, and, at the high end of that range, that maximum redemptions from our Trust Account occur.
Certain privately held entities affiliated with certain of DYNS’s officers and directors will participate in the PIPE Investment by subscribing for an aggregate of 500,000 shares of Class A Common Stock at the time the Business Combination is consummated, on the same terms and conditions as other PIPE Investors (as defined in this proxy statement/prospectus). These entities are also affiliates of our Sponsor. Immediately following the Business Combination and the PIPE Investment, subject to the same assumptions set forth in the two preceding paragraphs, the Sponsor together with its affiliates is expected to collectively hold between approximately 10.2% and 13.6% of the issued and outstanding common stock and voting power in New Senti. These percentages assume, at the low end of the range, that no redemptions from our Trust Account occur, and, at the high end of that range, that maximum redemptions from our Trust Account occur.
Proposals to approve the Business Combination Agreement and the other matters discussed in this proxy statement/prospectus will be presented for approval by DYNS’s stockholders at the special meeting of stockholders of DYNS (the “Special Meeting”) scheduled to be held on         , 2022, in virtual format.
DYNS’s Class A Common Stock is currently listed on The Nasdaq Capital Market (“Nasdaq”) under the symbol “DYNS.” DYNS intends to apply to continue the listing of the shares of Class A Common Stock effective upon the consummation of the Business Combination on Nasdaq under the proposed symbol “SNTI.” No shares will trade on Nasdaq under the symbol “DYNS” following the consummation of the Business Combination. It is a condition of the consummation of the Business Combination that the Class A Common Stock is approved for listing on Nasdaq (subject only to official notice of issuance thereof), but there can be no assurance that such listing condition will be met. If such listing condition is not met, the Business Combination will not be consummated unless the listing condition set forth in the Business Combination Agreement is waived by the parties to that agreement.
DYNS is an “emerging growth company” as defined in the Jumpstart Our Business Startups Act of 2012, as amended, and has elected to comply with certain reduced public company reporting requirements.
This proxy statement/prospectus incorporates by reference important business and financial information about DYNS from documents that are not included in or delivered with this proxy statement/prospectus. You can obtain documents incorporated by reference in this proxy statement/prospectus and other filings of DYNS with the Securities and Exchange Commission (the “SEC”) by visiting its website at
www.sec.gov
or requesting them in writing or by telephone from DYNS using the following details:
2875 El Camino Real
Redwood City, California, 94061
Telephone: (408)
212-0200
You will not be charged for any of these documents that you request. Stockholders requesting documents should do so by         , 2022 (five business days prior to the date of the Special Meeting) in order to receive them before the Special Meeting. Filings of DYNS are also available free of charge to the public on, or accessible through, DYNS’s corporate website under the heading “Documents”, at https://www.dspc.bio.
This proxy statement/prospectus provides you with detailed information about the Business Combination and other matters to be considered at the Special Meeting. We urge you to carefully read this entire document and the documents incorporated herein by reference. In particular, you should review the matters discussed under the heading “Risk Factors” beginning on page 23 of this proxy statement/prospectus.
Neither the SEC nor any state securities commission has approved or disapproved of the transactions described in this proxy statement/prospectus or the securities referenced herein, passed upon the merits or fairness of the Business Combination or related transactions, or passed upon the adequacy or accuracy of this proxy statement/prospectus. Any representation to the contrary is a criminal offense.
This proxy statement/prospectus is dated         , 2022 and is first being mailed to stockholders of DYNS on or about         , 2022.

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NOTICE OF SPECIAL MEETING OF STOCKHOLDERS
OF DYNAMICS SPECIAL PURPOSE CORP.
To Be Held On             , 2022
To the Stockholders of Dynamics Special Purpose Corp.:
NOTICE IS HEREBY GIVEN that a special meeting of stockholders (the “Special Meeting”) of Dynamics Special Purpose Corp., a Delaware corporation (“DYNS,” “we,” “our” or “us”), will be held on             , 2022, at             AM, Eastern Time, via live webcast at the following address:
                    
. You will need the
12-digit
meeting control number that is printed on your proxy card to enter the Special Meeting. DYNS recommends that you log in at least 15 minutes before the Special Meeting to ensure you are logged in when the Special Meeting starts. Please note that you will not be able to attend the Special Meeting in person. You are cordially invited to attend the Special Meeting to consider the following proposals (the “Proposals”):
 
  1.
to (a) adopt and approve the Business Combination Agreement, dated as of December 19, 2021 (the “Business Combination Agreement”), as amended on February 12, 2022 by Amendment No. 1 to Business Combination Agreement, among DYNS, Explore Merger Sub, Inc., a Delaware corporation and a wholly-owned subsidiary of DYNS (“Merger Sub”), and Senti Biosciences, Inc., a Delaware corporation (“Senti”), pursuant to which Merger Sub will merge with and into Senti, with Senti surviving the merger as a wholly-owned subsidiary of DYNS (the “Combined Company”), (b) approve such merger and the other transactions contemplated by the Business Combination Agreement (the “Business Combination”), and (c) adopt and approve each Ancillary Document (as defined in the Business Combination Agreement) to which DYNS is a party and approve all transactions contemplated therein. Subject to the terms and conditions set forth in the Business Combination Agreement, at the effective time of the Business Combination (the “Effective Time”):
 
  (i)
each outstanding share of Senti common stock will be cancelled and converted into the right to receive a number of shares of Class A Common Stock (rounded down to the nearest whole share) equal to the Exchange Ratio (as defined in the accompanying proxy statement/prospectus);
 
  (ii)
each outstanding share of Senti preferred stock will be cancelled and converted into the right to receive a number of shares of Class A Common Stock (rounded down to the nearest whole share) equal to (A) the aggregate number of shares of Senti common stock that would be issued upon conversion of the shares of Senti preferred stock based on the applicable conversion ratio immediately prior to the Effective Time, multiplied by (B) the Exchange Ratio;
 
  (iii)
each outstanding Senti option (whether vested or unvested) will be converted into an option to purchase a number of shares of Class A Common Stock (rounded down to the nearest whole share) equal to (A) the number of shares of Senti common stock subject to such option immediately prior to the Effective Time, multiplied by (B) the Exchange Ratio, at an exercise price per share equal to the current exercise price per share for such option divided by the Exchange Ratio (rounded up to the nearest whole cent); and
 
  (iv)
holders of shares of Senti common stock and Senti preferred stock may also be eligible to receive up to an aggregate of 2,000,000 shares of Class A Common Stock (which would be common stock of New Senti) based on the share price of New Senti common stock following the Business Combination or, in some circumstances, upon a change of control of the Combined Company.
We refer to this proposal as the “Business Combination Proposal.” A copy of the Business Combination Agreement and Amendment No.1 to Business Combination Agreement is attached to the accompanying proxy statement/prospectus as
Annex A and Annex AA
,
respectively
;
 
  2.
to approve, assuming the Business Combination Proposal is approved and adopted, a proposed second amended and restated certificate of incorporation (the “Proposed Charter,” a copy of which is attached to the accompanying proxy statement/prospectus as
Annex
 B
), which will amend and restate DYNS’s current amended and restated certificate of incorporation (the “Current Charter”), and amended bylaws for the Combined Company (a copy of which is also attached to the accompanying proxy statement/prospectus at
Annex
 B
), which will in each case be in effect upon the closing (the “Closing”) of the Business Combination (the “Charter Amendment Proposal”);

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  3.
to approve, on a
non-binding
advisory basis, the following material differences between the Proposed Charter and the Current Charter, which are being presented pursuant to guidance of the Securities and Exchange Commission as seven separate
sub-proposals
(the “Advisory Charter Amendment Proposals”):
 
  (a)
Advisory Charter Proposal A — to change the corporate name of the Combined Company to “Senti Biosciences, Inc.” on and from the time of the Business Combination;
 
  (b)
Advisory Charter Proposal B — to increase the authorized shares of common stock of the Combined Company to 500,000,000 shares;
 
  (c)
Advisory Charter Proposal C — to increase the authorized shares of preferred stock that the Combined Company’s board of directors could issue to 10,000,000 shares;
 
  (d)
Advisory Charter Proposal D — to provide that certain named individuals be elected to serve as Class I, Class II and Class III directors to serve staggered terms on the board of directors of the Combined Company until their respective successors are duly elected and qualified, or until their earlier resignation, death, or removal, and to provide that the removal of any director be only for cause (and by the affirmative vote of the holders of at least 75% of the Combined Company’s then-outstanding shares of capital stock entitled to vote at an election of directors);
 
  (e)
Advisory Charter Proposal E — to provide that certain amendments to provisions of the Proposed Charter will require the approval of the holders of at least 75% of the Combined Company’s then-outstanding shares of capital stock entitled to vote on such amendments, and of the holders of shares of each class entitled to vote thereon as a class;
 
  (f)
Advisory Charter Proposal F — to make the Combined Company’s corporate existence perpetual instead of requiring DYNS to be dissolved and liquidated 24 months following the closing of its initial public offering (the “Initial Public Offering”), and to omit from the Proposed Charter the various provisions applicable only to special purpose acquisition companies; and
 
  (g)
Advisory Charter Proposal G — to remove the provisions that allow stockholders to act by written consent as opposed to holding a stockholders meeting;
 
  4.
to approve, assuming the Business Combination Proposal is approved and adopted, for purposes of complying with the applicable provisions of Nasdaq Listing Rule 5635, (a) the issuance of up to 26,000,000 shares of Class A Common Stock in connection with the Business Combination, which amount will be determined as described in more detail in the accompanying proxy statement/prospectus, and (b) the issuance of an aggregate of 6,680,000 shares of Class A Common Stock in a private placement (the “PIPE Investment”) concurrent with the Business Combination (the “Nasdaq Stock Issuance Proposal”);
 
  5.
to approve, assuming the Business Combination Proposal is approved and adopted, the appointment of seven directors who, upon consummation of the Business Combination, will become directors of the Combined Company (the “Director Election Proposal”);
 
  6.
to approve, assuming the Business Combination Proposal is approved and adopted, the Incentive Plan (as defined in the accompanying proxy statement/prospectus), a copy of which is attached to the accompanying proxy statement/prospectus as
Annex
 C
, which will become effective as of and contingent on the consummation of the Business Combination (the “Incentive Plan Proposal”);
 
  7.
to approve, assuming the Business Combination Proposal is approved and adopted, the ESPP (as defined in the accompanying proxy statement/prospectus), a copy of which is attached to the accompanying proxy statement/prospectus as
Annex D
, which will become effective as of and contingent on the consummation of the Business Combination (the “ESPP Proposal”); and
 
  8.
to approve a proposal to adjourn the Special Meeting to a later date or dates if it is determined that more time is necessary or appropriate, in the judgment of the board of directors of DYNS or the officer presiding over the Special Meeting, for DYNS to consummate the Business Combination (the “Adjournment Proposal”).
Only holders of record of Class A Common Stock and Class B Common Stock of DYNS (collectively, the “DYNS Common Stock”) at the close of business on             , 2022 (the “Record Date”) are entitled to notice of

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the Special Meeting and to vote at the Special Meeting and any adjournments or postponements of the Special Meeting. A complete list of DYNS stockholders of record entitled to vote at the Special Meeting will be available for ten (10) days before the Special Meeting at the principal executive offices of DYNS for inspection by stockholders during ordinary business hours for any purpose germane to the Special Meeting.
Pursuant to the Current Charter, DYNS is providing its public stockholders (“Public Stockholders”) with the opportunity to redeem, upon the Closing, the shares of Class A Common Stock (the “Public Shares”) issued in the Initial Public Offering then held by them for cash equal to their pro rata share of the aggregate amount on deposit (as of two business days prior to the Closing) in the trust account (the “Trust Account”) that holds the proceeds (including interest but less franchise and income taxes payable) of the Initial Public Offering. For illustrative purposes, based on funds in the Trust Account of $             on the Record Date, the estimated per share redemption price would have been approximately $            .
Public Stockholders may elect to redeem Public Shares even if they vote for the Business Combination Proposal
. A Public Stockholder, together with any of his, her or its affiliates or any other person with whom he, she or it is acting in concert or as a “group” (as defined under Section 13 of the Securities Exchange Act of 1934, as amended), will be restricted from redeeming in the aggregate his, her or its shares or, if part of such a group, the group’s shares, with respect to more than an aggregate of 15% of the Public Shares issued in the Initial Public Offering, without the prior consent of DYNS. In connection with and as partial consideration for DYNS proceeding with the Initial Public Offering, and for the covenants and commitments of DYNS set forth in a letter agreement entered into with our Sponsor (as defined in the accompanying proxy statement/prospectus), but, for the avoidance of doubt, for no other or additional consideration in connection with the Business Combination, DYNS’s Sponsor and DYNS’s other initial stockholders have agreed to waive their redemption rights with respect to any Founder Shares and Private Placement Shares (each as defined in the accompanying proxy statement/prospectus) and any Public Shares they may hold, and the Sponsor has also agreed to waive its redemption rights with respect to any other equity securities it holds, and such shares will be excluded from the pro rata calculation used to determine the
per-share
redemption price. The Sponsor and DYNS’s other initial stockholders have agreed to vote any Founder Shares, Private Placement Shares and Public Shares owned by them, and the Sponsor has also agreed to vote any other equity securities, in favor of the Business Combination Proposal, which represent approximately 21.9% of the voting power of DYNS as of the Record Date. These holders have also agreed to vote their shares in favor of all other Proposals being presented at the Special Meeting.
Pursuant to DYNS’s bylaws, the presence of the holders of a majority of the shares of DYNS Common Stock entitled to vote, at the Special Meeting or by proxy, will constitute a quorum for the transaction of business at the Special Meeting. Under the Delaware General Corporation Law, shares that are voted “abstain” or “withheld” are counted as present for purposes of determining whether a quorum is present at the Special Meeting. Because the Proposals are
“non-discretionary”
items, your broker will not be able to vote uninstructed shares for any of the Proposals. As a result, if you do not provide voting instructions, a broker
“non-vote”
will be deemed to have occurred for each of the Proposals. Broker
“non-votes”
will not be counted as present for purposes of determining whether a quorum is present.
The approval of the Business Combination Proposal requires the affirmative vote of the holders of a majority of the shares of DYNS Common Stock cast in respect of that Proposal and entitled to vote thereon at the Special Meeting, voting together as a single class. The approval of each of the Nasdaq Stock Issuance Proposal, the Incentive Plan Proposal, the ESPP Proposal, the Adjournment Proposal and each of the Advisory Charter Amendment Proposals also requires the affirmative vote of the holders of a majority of the shares of DYNS Common Stock cast in respect of the relevant Proposal and entitled to vote thereon at the Special Meeting, voting together as a single class. The approval of the Charter Amendment Proposal requires the affirmative vote of the holders of a majority of the issued and outstanding shares of each of the Class A Common Stock and Class B Common Stock, voting separately, as well as the affirmative vote of the holders of a majority of the issued and outstanding shares of Class A Common Stock and Class B Common Stock, voting together as a single class.
The approval of the Director Election Proposal requires a plurality vote of the shares of DYNS Class B Common Stock cast in respect of that Proposal and entitled to vote thereon at the Special Meeting. “Plurality” means that the individuals who receive the largest number of votes cast “FOR” are elected as directors. Consequently, any shares not voted “FOR” a particular nominee (whether as a result of an abstention, a direction to withhold authority or a broker
non-vote)
will not be counted in the nominee’s favor.

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If the Business Combination Proposal is not approved, the Charter Amendment Proposal, the Advisory Charter Amendment Proposals, the Nasdaq Stock Issuance Proposal, the Director Election Proposal, the Incentive Plan Proposal and the ESPP Proposal will not be presented to DYNS stockholders for a vote. The approval of the Business Combination Proposal, the Charter Amendment Proposal, the Nasdaq Stock Issuance Proposal, the Director Election Proposal, the Incentive Plan Proposal and the ESPP Proposal are preconditions to the Closing.
As of the Record Date, there was $             in the Trust Account. Each redemption of Public Shares by Public Stockholders will decrease the amount in the Trust Account. DYNS will not redeem Public Shares in an amount that would cause it to have net tangible assets of less than $5,000,001.
Your attention is directed to the proxy statement/prospectus accompanying this notice (including the Annexes thereto) for a more complete description of the proposed Business Combination and related transactions and each of the Proposals. We encourage you to read the proxy statement/prospectus carefully. If you have any questions or need assistance voting your shares, please call our proxy solicitor,          at          or email at         .
            , 2022
 
By Order of the Board of Directors
 
     

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MARKET AND INDUSTRY DATA
Certain information contained in this document relates to or is based on studies, publications, surveys and other data obtained from third-party sources and DYNS’s own internal estimates and research. While we are not aware of any misstatements regarding such third-party information and data presented in this proxy statement/prospectus, such information and data involves risks and uncertainties and is subject to change based on various factors, including, potentially, those discussed under the section of this proxy statement/prospectus entitled “
Risk Factors
.” Furthermore, such information and data cannot always be verified with complete certainty due to limits on the availability and reliability of raw data, the voluntary nature of the data gathering process and other limitations and uncertainties inherent in any statistical survey. Finally, while we believe our own internal estimates and research are reliable, and are not aware of any misstatements regarding such information and data presented in this proxy statement/prospectus, such research has not been verified by any independent source.
TRADEMARKS
This document contains references to trademarks, trade names and service marks belonging to other entities. Solely for convenience, trademarks, trade names and service marks referred to in this proxy statement/prospectus may appear without the
®
or TM symbols, but such references are not intended to indicate, in any way, that the applicable licensor will not assert, to the fullest extent under applicable law, its rights to these trademarks and trade names. We do not intend our use or display of other entities’ trade names, trademarks or service marks to imply a relationship with, or endorsement or sponsorship of us by, any other entities.
FREQUENTLY USED TERMS
As used in this proxy statement/prospectus, unless otherwise noted or the context otherwise requires, references to:
Anchor Investors”
means the funds and accounts managed by Counterpoint Global (Morgan Stanley Investment Management), T. Rowe Price Group, Inc., ARK Investment Management LLC and Invus Public Equities, L.P., which are each Public Stockholders as at the date of this proxy statement/prospectus.
Board
” means DYNS’s board of directors.
BofA Securities
” means BofA Securities, Inc.
Business Combination
” means the transactions contemplated by the Business Combination Agreement, including the merger between Merger Sub and Senti.
Business Combination Agreement
” means the Business Combination Agreement, dated as of December 19, 2021, as amended or modified from time to time, including as amended by Amendment No. 1 to Business Combination Agreement, dated as of February 12, 2022, in each case, by and among DYNS, Merger Sub and Senti.
Business Combination Consideration
” means the consideration to be paid to holders of Senti common stock, Senti preferred stock and Senti options upon the Closing.
Class
 A Common Stock
” means the Class A Common Stock of DYNS, par value $0.0001.
Class
 B Common Stock
” means the Class B Common Stock of DYNS, par value $0.0001, which is convertible into shares of Class A Common Stock in accordance with the terms of the Current Charter.
Closing
” means the closing of the Business Combination.
 
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Closing Date
” has the meaning given in the Business Combination Agreement.
Code
” means the Internal Revenue Code of 1986, as amended.
Combined Company
” means DYNS subsequent to the Business Combination (also referred to herein as “
New Senti
”).
Concurrent Private Placement
” means the private placement of shares of Class A Common Stock, which was consummated simultaneously with the Initial Public Offering. The shares of Class A Common Stock issued in the Concurrent Private Placement are referred to herein as “
Private Placement Shares
.”
Continental
” means Continental Stock Transfer & Trust Company, transfer agent for DYNS and trustee of the Trust Account.
Contingency Consideration
” means the aggregate of 2,000,000 shares of Class A Common Stock (which would be shares of New Senti Common Stock) that the Sellers may be eligible to receive based on the share price of Class A Common Stock (i.e. New Senti Common Stock) following the Business Combination or, in some circumstances, upon a change of control of New Senti, as described in the Business Combination Agreement.
Current Charter
” means DYNS’s amended and restated certificate of incorporation.
DGCL
” means the Delaware General Corporation Law, as amended.
Dollars
” or “
$
” means U.S. dollars.
DYNS
” means Dynamics Special Purpose Corp., a Delaware corporation.
DYNS Common Stock
” means the Class A Common Stock and Class B Common Stock.
DYNS’s initial stockholders
” means the Sponsor and any other holders of Founder Shares prior to our Initial Public Offering (or their permitted transferees).
Effective Time
” means the effective time of the Business Combination.
ESPP
” means the Senti Biosciences, Inc. 2022 Employee Stock Purchase Plan, approved by the Board and the holders of DYNS Common Stock, effective as of and contingent on the consummation of the Business Combination.
Exchange Act
” means the Securities Exchange Act of 1934, as amended.
Exchange Ratio
” means $240,000,000
divided
by the Fully Diluted Company Capitalization (as defined in the Business Combination Agreement),
divided
by $10.00.
Founder Shares
” mean the shares of Class B Common Stock initially purchased by the Sponsor, and the shares of Class A Common Stock issuable upon conversion thereof.
HSR Act
” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.
Incentive Plan
” means the Senti Biosciences, Inc. 2022 Equity Incentive Plan, approved by the Board and the holders of DYNS Common Stock, effective as of and contingent on the consummation of the Business Combination.
Initial Public Offering
” means the initial public offering of DYNS, which closed on May 28, 2021.
 
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Investor Rights Agreement
” means the investor rights agreement into which DYNS, certain of the Senti stockholders and certain of the DYNS stockholders will enter at the Effective Time, the form of which is exhibited to the Business Combination Agreement.
J.P. Morgan
” means J.P. Morgan Securities LLC.
JOBS Act
” means the Jumpstart Our Business Startups Act of 2012, as amended.
Merger Sub
” means Explore Merger Sub, Inc., a Delaware corporation and wholly-owned subsidiary of DYNS.
Morgan Stanley
” means Morgan Stanley & Co. LLC.
Nasdaq
” means the Nasdaq Stock Market LLC.
New Senti
” refers to the Combined Company following the consummation of the Business Combination.
New Senti Board
” means the board of directors of New Senti.
New Senti Common Stock
” means the issued and outstanding common stock of New Senti, par value $0.0001 per share, immediately after the Effective Time, which, pursuant to the Proposed Charter, will replace the Class A Common Stock and Class B Common Stock upon consummation of the Business Combination as the only common stock of the Combined Company.
PIPE
” means private investment in public equity.
PIPE Investment
” means the private placement of an aggregate of 6,680,000 shares of Class A Common Stock with the PIPE Investors pursuant to Section 4(a)(2) of the Securities Act, for a purchase price of $10.00 per share to DYNS in an aggregate amount of $66.8 million, pursuant to subscription agreements with the PIPE Investors.
PIPE Investors
” means those investors participating in the PIPE Investment, which investors include certain entities affiliated with certain of DYNS’s officers and directors.
Proposals
” means each of the proposals to be considered for approval at the Special Meeting, as set forth in the section entitled
“Summary Term Sheet”
below.
Proposed Charter
” means the second amended and restated certificate of incorporation of DYNS, attached to this proxy statement/prospectus as
Annex
 B
.
Public Shares
” means the shares of Class A Common Stock issued in the Initial Public Offering.
Public Stockholders
” means holders of Public Shares.
Record Date
” means             , 2022.
Sarbanes-Oxley Act
” means the Sarbanes-Oxley Act of 2002, as amended.
SEC
” means the U.S. Securities and Exchange Commission.
Securities Act
” means the Securities Act of 1933, as amended.
 
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Sellers
” means the holders of Senti common stock and Senti preferred stock immediately prior to the Effective Time.
Senti
” means Senti Biosciences, Inc., a Delaware corporation.
Senti common stock
” means the common stock, par value $0.0001 per share, of Senti.
Senti options
” means options to purchase Senti common stock, whether vested or unvested.
Senti preferred stock
” means the preferred stock, par value $0.0001 per share, of Senti designated as Series A preferred stock (“
Series A preferred
”) and Series B preferred stock (“
Series B preferred
”).
Special Meeting
” means the special meeting of stockholders of DYNS, scheduled to be held on             , 2022 at          AM, Eastern Time.
Sponsor
” means Dynamics Sponsor LLC, a Delaware limited liability company.
Trust Account
” means the trust account maintained by Continental, acting as trustee, established for the benefit of Public Stockholders in connection with the Initial Public Offering.
SUMMARY TERM SHEET
This Summary Term Sheet and the sections entitled “
Questions and Answers About the Proposals
” and “
Summary of the Proxy Statement/Prospectus
” summarize certain information contained in this proxy statement/prospectus, but do not contain all of the information that is important to you. You should carefully read this entire proxy statement/prospectus, including all of the accompanying financial statements and the attached annexes, for a more complete understanding of the matters to be considered at the Special Meeting.
 
   
DYNS is a special purpose acquisition company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses.
 
   
On May 28, 2021, DYNS completed its Initial Public Offering of 23,000,000 shares of Class A Common Stock at a price of $10.00 per share, generating proceeds of $230,000,000 before underwriting discounts and expenses. Simultaneously with the closing of the Initial Public Offering, DYNS closed the Concurrent Private Placement of 715,500 shares of Class A Common Stock at a price of $10.00 per share to the Sponsor, generating proceeds of $7,155,000.
 
   
Senti’s mission is to create a new generation of smarter therapies that can outmaneuver complex diseases in ways previously not implemented by conventional medicines. To accomplish this mission, Senti has built a synthetic biology platform that it believes may enable it to program next-generation cell and gene therapies with what it refers to as “gene circuits.” These gene circuits, which Senti created from novel and proprietary combinations of genetic parts, are designed to reprogram cells with biological logic to sense inputs, compute decisions and respond to their respective cellular environments. Senti aims to design and optimize gene circuits through its Design-Build-Test-Learn Engine, or DBTL Engine, to improve the “intelligence” of cell and gene therapies in order to enhance their therapeutic effectiveness against a broad range of diseases that conventional medicines are unable to address. Senti’s gene circuit platform technologies can be applied in a modality-agnostic manner, with applicability to natural killer (NK) cells, T cells, tumor infiltrating lymphocytes (TILs), stem cells including hematopoietic stem cells (HSCs), in vivo gene therapy and messenger ribonucleic acid (mRNA). All of Senti’s current product candidates are in preclinical development. Senti’s lead product candidates currently utilize allogeneic chimeric antigen receptor (CAR) NK cells outfitted with its gene
 
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circuit technologies in several oncology indications with currently high unmet need. Subject to the successful identification of lead product candidates and the completion of IND-enabling studies, Senti expects to file investigational new drug applications, or INDs, for multiple product candidates starting in 2023.
 
   
On December 19, 2021, DYNS, Senti and Merger Sub entered into the Business Combination Agreement. Under the terms of the Business Combination Agreement, the parties thereto will enter into a business combination transaction pursuant to which Merger Sub will merge with and into Senti, with Senti surviving as a wholly-owned subsidiary of DYNS.
 
   
In accordance with and subject to the terms of the Business Combination Agreement, the consideration to be paid in connection with the Business Combination is $240,000,000, which will be paid as equity consideration to the Sellers and the holders of Senti options. The Sellers may also be entitled to the Contingency Consideration. For more information regarding the consideration to be paid in connection with the Business Combination, please see the section entitled
“Summary of the Proxy Statement/Prospectus – Business Combination Consideration.”
 
   
Concurrently with the execution of the Business Combination Agreement, DYNS entered into subscription agreements with the PIPE Investors in respect of the PIPE Investment, pursuant to which the PIPE Investors have collectively subscribed for 6,680,000 shares of Class A Common Stock for an aggregate purchase price equal to $66,800,000. The PIPE Investment will be consummated substantially concurrently with the Closing. It is anticipated that, assuming that no additional shares are issued prior to Closing, upon Closing:
 
   
the PIPE Investors, who will include certain entities affiliated with certain of DYNS’s officers and directors (and who will subscribe for 500,000 shares of Class A Common Stock on the same terms and conditions as all other PIPE Investors), will own approximately 11.3% of the outstanding DYNS Common Stock;
 
   
the Sellers will own approximately 38.8% of the outstanding DYNS Common Stock;
 
   
the Sponsor will own approximately 9.3% of the outstanding DYNS Common Stock; and
 
   
Public Stockholders, will own approximately 40.6%, of the outstanding DYNS Common Stock.
These levels of ownership interest (i) assume that no Public Shares are elected to be redeemed in connection with the Business Combination, (ii) assume no exercise of any options to purchase Class A Common Stock that will be outstanding immediately following the Business Combination, whether such options are issued under the Incentive Plan or otherwise, (iii) exclude the Contingency Consideration, if any, (iv) exclude the issuance of any shares or other awards in connection with the Incentive Plan or the ESPP following the Business Combination, and (v) assume that 965,728 Founder Shares are forfeited by the Sponsor and cancelled, with the Anchor Investors (which are Public Stockholders) concurrently being issued an equivalent number of shares of Class A Common Stock in connection with the Non-Redemption Agreements (as defined below), as described below. If the actual facts are different from these assumptions, then the levels of ownership interest set forth above will be different. For more information, please see the section entitled
“Unaudited Pro Forma Condensed Combined Financial Information.”
 
   
On February 12, 2022, DYNS, Merger Sub and Senti entered into Amendment No.1 to Business Combination Agreement to, among other things (i) clarify section 5.7 of the Business Combination Agreement with respect to certain parameters of the Incentive Plan, and (ii) restructure certain option grants made to Senti employees at the time the Business Combination Agreement was signed, to (a) acknowledge that certain of such employees’ option award agreements reflect the fact that their option grants, which are for a number of shares of Senti common stock, are subject to adjustment, and (b) provide that certain of such employees’ options will commence vesting on the grant date (being the date the Business Combination Agreement was signed) while other employees’ options will commence vesting on the Closing Date.
 
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In evaluating the Business Combination, our Board considered various factors in determining whether to approve the Business Combination Agreement. For more information about our Board’s decision-making process, as well as other factors, uncertainties and risks considered, see the section entitled “
Proposal 1: The Business Combination Proposal
 — The Board’s Reasons for Approval of the Business Combination
.”
 
   
Pursuant to the Current Charter, Public Stockholders may request that we redeem all or a portion of their Public Shares for cash if the Business Combination is consummated. Public Stockholders may elect to redeem their Public Shares even if they vote “FOR” the Proposal to approve the Business Combination, or any other Proposal. If the Business Combination is not consummated, the Public Shares will be returned to the respective Public Stockholder or their broker, bank or other nominee. If the Business Combination is consummated, and if a Public Stockholder properly exercises their right to redeem all or a portion of their Public Shares, including by timely delivering their shares to Continental, we will redeem such Public Shares for a
per-share
price, payable in cash, equal to the pro rata portion of the Trust Account, calculated as of two business days prior to the consummation of the Business Combination, including interest but less franchise and income taxes payable. For illustrative purposes, based on funds in the Trust Account of $             on the Record Date, the estimated per share redemption price would have been approximately $10.00. If a Public Stockholder properly exercises their redemption rights in full, then they will be electing to exchange all of their Public Shares for cash and will not own any shares of the Combined Company. Please see the section entitled
“Summary of the Proxy Statement/Prospectus—Redemption Rights of DYNS Stockholders
” for further information regarding the redemption rights of Public Stockholders.
 
   
In addition to voting on the proposal to approve and adopt the Business Combination Agreement and approve the Business Combination, and to approve each Ancillary Document (as defined in the Business Combination Agreement) to which DYNS is a party and approve all transactions contemplated therein (together, the “Business Combination Proposal”) at the Special Meeting, our stockholders will be asked to vote to approve the following Proposals:
 
   
assuming the Business Combination Proposal is approved and adopted, the Proposed Charter, which will amend and restate the Current Charter, and amended bylaws for the Combined Company, which will, in each case, be in effect upon the Closing (the “Charter Amendment Proposal”);
 
   
on a
non-binding
advisory basis, the following material differences between the Proposed Charter and the Current Charter, which are being presented pursuant to guidance of the SEC as seven separate
sub-proposals
(the “Advisory Charter Amendment Proposals”):
 
   
Advisory Charter Proposal A — to change the corporate name of the Combined Company to “Senti Biosciences, Inc.” on and from the time of the Business Combination;
 
   
Advisory Charter Proposal B — to increase the authorized shares of common stock of the Combined Company to 500,000,000 shares;
 
   
Advisory Charter Proposal C — to increase the authorized shares of preferred stock that the Combined Company’s board of directors could issue to 10,000,000 shares;
 
   
Advisory Charter Proposal D — to provide that certain named individuals be elected to serve as Class I, Class II and Class III directors to serve staggered terms on the New Senti Board until their respective successors are duly elected and qualified, or until their earlier resignation, death, or removal, and to provide that the removal of any director be only for cause (and by the affirmative vote of the holders of at least 75% of the Combined Company’s then-outstanding shares of capital stock entitled to vote at an election of directors);
 
   
Advisory Charter Proposal E — to provide that certain amendments to provisions of the Proposed Charter will require the approval of the holders of at least 75% of the Combined Company’s then-outstanding shares of capital stock entitled to vote on such amendments, and of the holders of shares of each class entitled to vote thereon as a class;
 
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Advisory Charter Proposal F — to make the Combined Company’s corporate existence perpetual instead of requiring DYNS to be dissolved and liquidated 24 months following the closing of the Initial Public Offering, and to omit from the Proposed Charter the various provisions applicable only to special purpose acquisition companies; and
 
   
Advisory Charter Proposal G — to remove the provisions that allow stockholders to act by written consent as opposed to holding a stockholders meeting;
 
   
assuming the Business Combination Proposal is approved and adopted, for purposes of complying with the applicable provisions of Nasdaq Listing Rule 5635, (a) the issuance of up to 26,000,000 shares of Class A Common Stock in connection with the Business Combination, and (b) the issuance of an aggregate of 6,680,000 shares of Class A Common Stock in connection with the PIPE Investment concurrent with the Business Combination (the “Nasdaq Stock Issuance Proposal”);
 
   
assuming the Business Combination Proposal is approved and adopted, the appointment of seven directors who, upon consummation of the Business Combination, will become directors of the Combined Company (the “Director Election Proposal”);
 
   
assuming the Business Combination Proposal is approved and adopted, the Incentive Plan, which will become effective as of and contingent on the consummation of the Business Combination (the “Incentive Plan Proposal”);
 
   
assuming the Business Combination Proposal is approved and adopted, the ESPP, which will become effective as of and contingent on the consummation of the Business Combination (the “ESPP Proposal”); and
 
   
the adjournment of the Special Meeting to a later date or dates if it is determined that more time is necessary or appropriate, in the judgment of the Board or the officer presiding over the Special Meeting, for DYNS to consummate the Business Combination (the “Adjournment Proposal”).
For further information, please see the section entitled
“Summary of the Proxy Statement/Prospectus—Additional Matters Being Voted On By DYNS Stockholders
. The approval of the Business Combination Proposal, the Charter Amendment Proposal, the Nasdaq Stock Issuance Proposal, the Director Election Proposal, Incentive Plan Proposal and the ESPP Proposal are preconditions to the Closing. Each of these Proposals is more fully described in this proxy statement/prospectus, which each DYNS stockholder is encouraged to read carefully and in its entirety.
 
   
Unless waived by the parties to the Business Combination Agreement, and subject to applicable law, the closing of the Business Combination is subject to a number of conditions set forth in the Business Combination Agreement, including, among others (i) there being at least $150,000,000 in cash available at Closing, (ii) the registration statement, of which this proxy statement/prospectus forms a part, becoming effective in accordance with the Securities Act, (iii) customary bringdown conditions, and (iv) no material adverse effect in respect of either DYNS or Senti having occurred. There can be no assurance that the parties to the Business Combination Agreement would waive any such provision of the Business Combination Agreement. For more information about the closing conditions to the Business Combination, please see the section entitled “
Proposal 1: The Business Combination Proposal.”
 
   
To assist with minimizing redemptions of Public Shares and satisfying the condition to Closing that there be at least $150,000,000 in available cash, on December 19, 2021, DYNS entered into non-redemption agreements (the “Non-Redemption Agreements”) with the Anchor Investors pursuant which such investors agreed to, among other things, not redeem the Public Shares beneficially owned by them and to not, subject to certain exceptions, transfer such Public Shares. These commitments apply in respect of 8,109,337 Public Shares in the aggregate as at the date of filing of this proxy statement/prospectus. In connection with these commitments from the Anchor Investors, the Sponsor has agreed to forfeit 965,728 Founder Shares and DYNS has agreed to cancel such Founder Shares and
 
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concurrently issue to such investors an equivalent number of shares of Class A Common Stock, in each case, at or promptly following Closing, thereby potentially increasing the Anchor Investors’ ownership interest in New Senti. The potential issuance of such shares of Class A Common Stock to the Anchor Investors is the only consideration which they will potentially receive in connection with their agreement not to redeem their Public Shares. For more information about the Non-Redemption Agreements, please see the section entitled “
Proposal 1: The Business Combination Proposal – Related Agreements – Non-Redemption Agreements
.”
 
   
The proposed Business Combination, including our business following the Business Combination, involves numerous risks. For more information about these risks, please see the section entitled
“Risk Factors.”
 
   
When you consider the recommendation of our Board in favor of approval of the Business Combination Proposal and the other Proposals included herein, you should keep in mind that the Sponsor and our directors have interests in such Proposals that are different from, or in addition to, those of our stockholders generally. Our Board was aware of and considered these interests, among other matters, in evaluating and negotiating the Business Combination Agreement and the other transaction agreements and in recommending to our stockholders that they vote in favor of the Proposals presented at the Special Meeting, including the Business Combination Proposal. DYNS stockholders should take these interests into account in deciding whether to approve the Proposals presented at the Special Meeting, including the Business Combination Proposal. For further information, please see the section entitled “
Summary of the Proxy Statement/Prospectus —
 Interests of the Sponsor and DYNS’s Directors and Officers in the Business Combination.”
 
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QUESTIONS AND ANSWERS ABOUT THE PROPOSALS
The questions and answers below highlight only selected information from this proxy statement/prospectus and only briefly address some commonly asked questions about the Special Meeting and the Proposals to be presented at the Special Meeting, including with respect to the proposed Business Combination. The following questions and answers do not include all the information that may be important to DYNS stockholders. DYNS stockholders are urged to read this entire proxy statement/prospectus, including the Annexes and the other documents referred to herein.
QUESTIONS AND ANSWERS ABOUT THE BUSINESS COMBINATION
 
Q:
What is the Business Combination?
 
A:
DYNS and Senti have entered into the Business Combination Agreement, pursuant to which Merger Sub will merge with and into Senti, with Senti surviving the Business Combination as a wholly-owned subsidiary of DYNS.
 
Q:
Why am I receiving this proxy statement/prospectus?
 
A:
DYNS and Senti have agreed to a Business Combination under the terms of the Business Combination Agreement that is described in this proxy statement/prospectus. A copy of the Business Combination Agreement is attached to this proxy statement/prospectus as
Annex
 A
, and DYNS encourages its stockholders to read it in its entirety. DYNS’s stockholders are being asked to consider and vote upon a proposal to approve the Business Combination Agreement, which, among other things, provides for the Business Combination whereby Merger Sub will merge with and into Senti, with Senti surviving the Business Combination as a wholly-owned subsidiary of DYNS. See the section entitled “
Proposal 1: The Business Combination Proposal
.”
This document is a proxy statement because the Board is soliciting proxies using this proxy statement/prospectus from DYNS stockholders. It is a prospectus because DYNS, in connection with the Business Combination, is offering shares of Class A Common Stock in exchange for the outstanding shares of Senti common stock and Senti preferred stock. See the section entitled “
Proposal 1: The Business Combination Proposal.
 
Q:
What is the Business Combination Consideration and what will Senti stockholders and holders of Senti options receive in the Business Combination?
 
A:
If the Business Combination is completed, Senti stockholders (the Sellers) and holders of Senti options will receive the following equity consideration, which is referred to collectively as the “Business Combination Consideration”:
 
   
Each outstanding share of Senti common stock will be cancelled and converted into the right to receive a number of shares of Class A Common Stock equal to the Exchange Ratio (rounded down to the nearest whole share).
 
   
Each outstanding share of Senti preferred stock will be cancelled and converted into the right to receive a number of shares of Class A Common Stock equal to (A) the aggregate number of shares of Senti common stock that would be issued upon conversion of the shares of Senti preferred stock based on the applicable conversion ratio immediately prior to the Effective Time, multiplied by (ii) the Exchange Ratio (rounded down to the nearest whole share).
 
   
Each outstanding Senti option (whether vested or unvested) will be converted into an option to purchase a number of shares of Class A Common Stock (rounded down to the nearest whole share) equal to (A) the number of shares of Senti common stock subject to such option immediately prior to the Effective Time, multiplied by (B) the Exchange Ratio, at an exercise price per share equal to the current exercise price per share for such option divided by the Exchange Ratio (rounded up to the nearest whole cent).
 
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The Business Combination Consideration is valued at $240,000,000 based on a price for Class A Common Stock of $10.00 per share, as negotiated with Senti and set forth in the Business Combination Agreement. Based on the number of shares of Senti common stock and Senti preferred stock outstanding and the number of shares of Senti common stock underlying outstanding Senti options, in each case as of the Record Date, the total number of shares of Class A Common Stock expected to be issued as Business Combination Consideration is 24,000,000 shares (of which approximately 22,916,991 shares are expected to be issued at Closing to the Sellers). Following the Closing, the Sellers may also be eligible to receive Contingency Consideration of up to an aggregate of 2,000,000 shares of Class A Common Stock (which would be shares of New Senti Common Stock) based on the share price of New Senti Common Stock following the Business Combination or, in certain circumstances, upon a change of control of New Senti. Assuming the same $10.00 per share price as set forth above, the potential value of the Contingency Consideration is $20,000,000. For further information, please see the section titled “
Proposal 1: The Business Combination Proposal — Structure of the Business Combination
.”
 
Q:
What equity stake will non-redeeming Public Stockholders, the PIPE Investors, the Sellers and our Sponsor hold in New Senti following the consummation of the Business Combination and the PIPE Investment and what is the expected pro forma equity value of New Senti at the Closing?
 
A:
The equity stake held by our non-redeeming Public Stockholders, the PIPE Investors (who will include certain entities affiliated with certain of DYNS’s officers and directors), the Sellers and our Sponsor in New Senti immediately following consummation of the Business Combination and the PIPE Investment will depend on the number of redemptions from our Trust Account by Public Stockholders at the Closing as well as various other factors, as described in the assumptions set forth below. Approximate equity stakes for each of these stockholder groups upon consummation of the Business Combination and the PIPE Investment, and their corresponding approximate collective voting power in New Senti, are set forth in the table below in respect of four redemption scenarios: (1) “Scenario A,” in which there are no redemptions of our Public Shares; (2) “Scenario B,” in which 25% of our Public Shares which are not subject to Non-Redemption Agreements as at the date of this proxy statement/prospectus are redeemed; (3) “Scenario C,” in which 75% of our Public Shares which are not subject to Non-Redemption Agreements as at the date of this proxy statement/prospectus are redeemed, and (4) “Scenario D,” in which there are maximum redemptions from our Trust Account. For further information on what constitutes a “maximum redemptions” scenario, please see the section of this proxy statement/prospectus entitled “
Unaudited Pro Forma Condensed Combined Financial Information
.” All else being equal, if any Public Stockholders exercise their redemption rights, the percentage of New Senti Common Stock held collectively by all non-redeeming Public Stockholders will decrease and the percentage of New Senti Common Stock held by the PIPE Investors, the Sellers and our Sponsor will increase, in each case, relative to the percentage held if no Public Shares are redeemed.
Each of the scenarios presented below (i) assumes that no additional shares of DYNS Common Stock are issued prior to Closing, (ii) assumes there is no exercise of any options to purchase Class A Common Stock that will be outstanding immediately following the Business Combination, whether such options are issued under the Incentive Plan or otherwise, (iii) excludes the Contingency Consideration, if any, (iv) excludes the issuance of any shares or other awards in connection with the Incentive Plan or the ESPP following the Business Combination, and (v) assumes that 965,728 Founder Shares are forfeited by the Sponsor and cancelled, with the Anchor Investors (which are Public Stockholders) concurrently being issued an equivalent number of shares of Class A Common Stock in connection with the Non-Redemption Agreements, as described in the section of this proxy statement/prospectus entitled “
Summary Term Sheet
.”
The table set forth below also states the anticipated pro forma equity value of New Senti for each of the scenarios described above. These pro forma equity values reflect an assumed price for New Senti Common Stock of $10.00 per share, being the price per share negotiated with Senti and set forth in the Business Combination Agreement for shares of Class A Common Stock to be issued as Business Combination Consideration (as described in the preceding question entitled “
What is the Business Combination
 
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Consideration and what will Senti stockholders and holders of Senti options receive in the Business Combination?
”). The pro forma equity values include the equity consideration to be issued to the Sellers at Closing (being approximately 22,916,991 shares of Class A Common Stock, or $229,169,910 of the total $240,000,000 in Business Combination Consideration, based on the assumed price of $10.00 per share) but do not include equity consideration payable to the holders of outstanding Senti options. The number of Public Shares redeemed by Public Stockholders with cash from our Trust Account at Closing is not, all else being equal, expected to materially affect the equity value per share of New Senti Common Stock held by non-redeeming Public Stockholders as at the time immediately following the Closing, as each redemption will result in (x) the cancellation of one Public Share, and (y) the payment of approximately $10.00 to the redeeming Public Stockholder (given that, based on funds in the Trust Account of $                on the Record Date, the estimated per share redemption price would have been approximately $                ) and, accordingly, such funds will not be available to the Combined Company or reflected in its financial statements following the Closing. You should note, however, that the level of redemptions of Public Shares from our Trust Account may affect the market price for shares of New Senti Common Stock following the Closing in ways which we cannot predict. For further information, please refer to the section of this proxy statement/prospectus entitled “
Risk Factors — Redemptions of Public Shares by Public Stockholders may affect the market price of New Senti Common Stock.
The ownership percentages set forth below for non-redeeming Public Stockholders and all other New Senti stockholders may be diluted, all else being equal, in the event that (1) options for New Senti Common Stock outstanding following the Closing are exercised, or (2) shares of New Senti Common Stock are issued in connection with the Contingency Consideration. The extent of possible dilution is set forth in the table below. The issuance of any shares or other awards in connection with the Incentive Plan or the ESPP following the Business Combination would also have a dilutive effect on New Senti stockholders’ ownership percentages, all else being equal, however, the magnitude of any such potential issuances is not known as at the date of this proxy statement/prospectus.
 
Holder of shares of New
Senti Common Stock
 
Scenario A

No redemptions
   
Scenario B

25% redemptions
(1)
   
Scenario C

75% redemptions
(2)
   
Scenario D

Maximum redemptions
(3)
 
 
No. of shares
   
Voting
power
(4)
   
No. of shares
   
Voting
power
   
No. of shares
   
Voting
power
   
No. of shares
   
Voting
power
 
Public Stockholders
(5)
    23,965,728       40.6     20,243,062       36.6     12,797,731       26.7     9,075,065       20.5
PIPE Investors
(6)
    6,680,000       11.3     6,680,000       12.1     6,680,000       14.0     6,680,000       15.1
The Sellers
(7)
    22,916,991       38.8     22,916,991       41.4     22,916,991       47.8     22,916,991       51.9
The Sponsor
(8)
    5,499,772       9.3     5,499,772       9.9    
5,499,772
 
    11.5    
5,499,772
 
    12.5
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Pro Forma New Senti Common Stock at Closing
(9)
 
 
59,062,491
 
 
 
100.0
 
 
55,339,825
 
 
 
100.0
 
 
47,894,494
 
 
 
100.0
 
 
44,171,828
 
 
 
100.0
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Pro Forma Equity Value
(9)
 
$
590,624,910
 
 
 
—  
 
 
$
553,398,253
 
 
 
—  
 
 
$
478,944,938
 
 
 
—  
 
 
$
441,718,280
 
 
 
—  
 
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Pro Forma Book Value
(9)
               
Total Pro Forma Book Value
  $ 336,086,500       —       $ 298,859,500       —       $ 224,406,500       —       $ 187,179,500       —    
Pro Forma Book Value Per Share
  $ 5.69       —       $ 5.40       —       $ 4.69       —       $ 4.24       —    
Potential additional sources of dilution
               
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Contingency Consideration
(10)
    2,000,000       3.3     2,000,000       3.5     2,000,000       4.0     2,000,000       4.3
 
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(1)
As at the date of this proxy statement/prospectus, there are 23,000,000 Public Shares issued and outstanding. Of those shares, 8,109,337 are subject to Non-Redemption Agreements as at the date of this proxy statement/prospectus. The numbers set forth in this column assume that 3,722,666, or approximately 25%, of the 14,890,663 Public Shares that are not subject to Non-Redemption Agreements as at the date of this proxy statement/prospectus are redeemed at $10.00 per share.
(2)
As at the date of this proxy statement/prospectus, there are 23,000,000 Public Shares issued and outstanding. Of those shares, 8,109,337 are subject to Non-Redemption Agreements as at the date of this proxy statement/prospectus. The numbers set forth in this column assume that 11,167,997, or approximately 75%, of the 14,890,663 Public Shares that are not subject to Non-Redemption Agreements as at the date of this proxy statement/prospectus are redeemed at $10.00 per share.
(3)
As at the date of this proxy statement/prospectus, there are 23,000,000 Public Shares issued and outstanding. Of those shares, 8,109,337 are subject to Non-Redemption Agreements as at the date of this proxy statement/prospectus. The numbers set forth in this column assume that all 14,890,663 Public Shares that are not subject to Non-Redemption Agreements as at the date of this proxy statement/prospectus are redeemed at $10.00 per share.
(4)
All voting power percentages in this table are approximate and have been rounded to one decimal place.
(5)
Shares held by Public Stockholders include those held by Anchor Investors as at the date of this proxy statement/prospectus.
(6)
PIPE Investors include certain entities affiliated with members of our Board who will subscribe for an aggregate of 500,000 shares of Class A Common Stock in the PIPE Investment on the same terms and conditions as other PIPE Investors. These entities are also affiliates of our Sponsor. Immediately following the Business Combination and the PIPE Investment, our Sponsor and its affiliates are expected to collectively hold between approximately 10.2% and 13.6% of the New Senti Common Stock and corresponding voting power (assuming, at the low end of that range, that no redemptions from our Trust Account occur, and, at the high end of that range, that maximum redemptions from our Trust Account occur, and subject to all of the other assumptions set forth above in respect of the scenarios displayed in the table).
(7)
The total number of shares of Class A Common Stock expected to be issued as Business Combination Consideration is 24,000,000 shares. Approximately 22,916,991 of these shares are expected to be issued at Closing to the Sellers, with the remaining shares being consideration paid for Senti options outstanding.
(8)
The Sponsor’s equity interests following the Closing are expected to comprise, as at the date of this proxy statement/prospectus, 715,500 Private Placement Shares and 4,784,272 Founder Shares (being the 5,750,000 Founder Shares the Sponsor holds as at the date of this proxy statement/prospectus
less
965,728 Founder Shares which the Sponsor expects to forfeit in connection with the Non-Redemption Agreements). Certain entities affiliated with members of our Board are PIPE Investors and affiliates of our Sponsor, and such entities have subscribed for an aggregate of 500,000 shares of Class A Common Stock in connection with the PIPE Investment.
(9)
Excluding the effect of any “potential additional sources of dilution,” as set forth in the table, which potential additional sources of dilution are subject to certain conditions being satisfied, as set forth in the section of this proxy statement/prospectus entitled “
Proposal 1: The Business Combination Proposal — Structure of the Business Combination
.”
(10)
Assumes that the Sellers receive Contingency Consideration of an aggregate of 2,000,000 shares of Class A Common Stock (which would be shares of New Senti Common Stock) following the Closing. The issuance of these shares is subject to certain conditions being satisfied, as set forth in the section of this proxy statement/prospectus entitled “
Proposal 1: The Business Combination Proposal — Structure of the Business Combination
.” The issuance of these shares would not result in any cash inflow to New Senti and therefore would not increase the company’s total equity value at the time of issuance, but would, all else being equal, result in the per share equity value of New Senti Common Stock decreasing. The “voting power” column sets forth the percentage of New Senti’s total issued share capital attributable to shares issued in connection with the Contingency Consideration.
 
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The anticipated ownership of New Senti’s securities set forth above, including the potential effect of any dilutive events, is accurate, subject to the assumptions and exclusions set forth above, as of the date of filing of this proxy statement/prospectus, and does not take into account any transactions that may be entered into after the date hereof unless explicitly set forth above. If the actual facts differ from our assumptions, the numbers of shares and ownership percentages set forth above, including the anticipated equity stake of non-redeeming Public Stockholders in New Senti following the Business Combination and PIPE Investment, will be different.
You should read the section of this proxy statement/prospectus entitled “
Unaudited Pro Forma Condensed Combined Financial Information
” for further information.
 
Q:
When do you expect the Business Combination to be completed?
 
A:
It is currently anticipated that the Business Combination will be consummated promptly following the Special Meeting, which is set for                 , 2022; however, the Special Meeting could be adjourned, as described herein. DYNS cannot assure you of when or if the Business Combination will be completed, and it is possible that factors outside of the control of DYNS and Senti could result in the Business Combination being completed at a different time or not at all. DYNS must first obtain the approval of its stockholders for certain of the Proposals set forth in this proxy statement/prospectus.
 
Q:
What happens if the Business Combination is not consummated?
 
A:
If DYNS does not complete the Business Combination with Senti, for whatever reason, DYNS will search for another target business with which to complete a business combination. If DYNS does not complete the Business Combination with Senti or another business combination by May 28, 2023 (or such later date as may be approved by DYNS stockholders in an amendment to its Current Charter), DYNS must redeem 100% of the Public Shares, at a
per-share
price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest earned on the funds held in the Trust Account and not previously released to DYNS to pay its franchise and income taxes (less up to $100,000 of such net interest to pay dissolution expenses), divided by the number of then-outstanding Public Shares. The Sponsor has waived any rights it may have with respect to any monies held in the Trust Account or any other asset of DYNS as a result of any liquidation of DYNS with respect to the Founder Shares and Private Placement Shares and, accordingly, in the event a business combination is not effected by DYNS in the required time period, the Founder Shares and Private Placement Shares held by the Sponsor would be worthless.
 
Q:
Did the Board obtain a third-party valuation or fairness opinion in determining whether or not to proceed with the Business Combination?
 
A:
No, the Board did not obtain a third-party valuation or fairness opinion. Consequently, you have no assurance from an independent source that the price proposed to be paid for Senti is fair from a financial point of view.
 
Q:
Will any DYNS securities have registration rights following the consummation of the Business Combination?
 
A:
Yes. Founder Shares, Private Placement Shares and shares of Class A Common Stock issued to PIPE Investors in connection with the PIPE Investment will have registration rights following the consummation of the Business Combination. For further information, please see the section of this proxy statement/prospectus entitled “
DYNS Management’s Discussion and Analysis of Financial Condition and Results of Operations – Commitments and Contingencies
.”
 
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QUESTIONS AND ANSWERS ABOUT THE SPECIAL MEETING
 
Q:
Why is the Special Meeting a virtual, online meeting?
 
A:
As a part of our precautions regarding the
COVID-19
pandemic, we have decided to hold the Special Meeting solely online. We believe that hosting a virtual meeting in the current environment will facilitate stockholder attendance and participation by enabling stockholders to participate from any location around the world and, in doing so, improve our ability to communicate more effectively with our stockholders. We have designed the virtual meeting to provide substantially the same opportunities to participate as you would have at an in-person meeting.
 
Q:
How do I attend a virtual meeting?
 
A:
We are pleased to use the virtual meeting format to facilitate stockholder attendance, voting and questions by leveraging technology to communicate more effectively and efficiently with our stockholders. This format allows stockholders to participate fully from any location, without the cost of travel. As a registered stockholder, along with this proxy statement/prospectus, you received a proxy card from Continental, DYNS’s transfer agent, which contains instructions on how to attend the virtual Special Meeting, including the URL address and your control number. You will need your control number for access. If you do not have your control number, contact Continental at [(917)
262-2373],
or email Continental at [proxy@continentalstock.com].
You can
pre-register
to attend the virtual Special Meeting starting on                 , 2022 (five business days prior to the meeting). Enter the following URL address into your browser             , then enter your control number, name and email address. Once you
pre-register,
you can vote or enter questions in the chat box. At the start of the Special Meeting, you will need to
re-login
using the same control number and, if you want to vote during the meeting, you will be prompted to enter your control number again.
Beneficial owners who own their Class A Common Stock through a bank, broker or other nominee will need to contact Continental to receive a control number. If you plan to vote at the Special Meeting, you will need to have a legal proxy from your broker, bank or other nominee or, if you would like to join and not vote, Continental can issue you a guest control number with proof of ownership. Either way, you must contact Continental at the number or email address above for specific instructions on how to receive the control number. Please allow up to 72 hours prior to the meeting for processing your control number.
If you do not have internet capabilities, you can only listen to the Special Meeting by dialing                  (toll-free, within the U.S. and Canada) or                  (with toll, outside the U.S. or Canada) and when prompted, enter the pin                 . This method supports listening only, so you will not be able to vote or ask questions during the Special Meeting. A replay of the Special Meeting will be made available promptly after the meeting at                      and remain available for at least one year from the date it is made available.
 
Q:
How do I ask questions during the Virtual Special Meeting?
 
A:
Stockholders may submit questions during the Special Meeting using the [“Ask a Question”] field on the virtual meeting website. You will need to log in with your control number found on your proxy card to submit a question. Time has been allocated on the agenda to respond to questions submitted during the Special Meeting. Questions we do not answer during the Special Meeting will be answered in writing and posted on the Company’s website at https://www.dspc.bio. Please refer to the Special Meeting [Rules of Conduct and Procedures] for more information on how to ask questions. The [Rules of Conduct and Procedures] are available at                      and during the Special Meeting at                     .
We encourage you to access the Special Meeting early. Online check-in will begin approximately 15 minutes before the          AM start time. If you encounter difficulties during the check-in or meeting time, we have technicians available to help you. The technical support contact information will be posted on the virtual meeting login page.
 
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Q:
Are there any other matters being presented to DYNS stockholders at the Special Meeting?
A:
In addition to voting on the Business Combination Proposal, assuming it is approved and adopted, the stockholders of DYNS will vote on each of the other Proposals described in the section above entitled
“Summary Term Sheet.”
DYNS will hold the Special Meeting to consider and vote upon these Proposals. This proxy statement/prospectus contains important information about the proposed Business Combination and the other matters to be acted upon at the Special Meeting. Stockholders should read it carefully.
Consummation of the Business Combination is conditioned on approval of the Business Combination Proposal, the Charter Amendment Proposal, the Nasdaq Stock Issuance Proposal, the Director Election Proposal, the Incentive Plan Proposal and the ESPP Proposal (and each such Proposal is cross-conditioned on the approval of such other Proposals). If any of these Proposals is not approved, the other Proposals will not be presented to stockholders for a vote.
The vote of stockholders is important. DYNS stockholders are encouraged to vote as soon as possible after carefully reviewing this proxy statement/prospectus.
 
Q:
What will happen to DYNS’s securities upon consummation of the Business Combination?
A:
DYNS’s Class A Common Stock is currently listed on Nasdaq under the symbol “DYNS.” Upon the Closing, the Combined Company will have one class of common stock, which will be listed on Nasdaq under the symbol “SNTI.” Public Stockholders who do not elect to have their Public Shares redeemed for a pro rata share of the Trust Account need not submit Public Shares, and such shares of stock (which will be common stock of New Senti following the Closing) will remain outstanding. Each outstanding share of Class B Common Stock, by its terms, will automatically convert into one share of Class A Common Stock upon the Closing (which will be New Senti Common Stock).
 
Q:
Why is DYNS proposing the Business Combination?
 
A
:
DYNS was organized to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or other similar business combination with one or more businesses.
On May 28, 2021, DYNS completed its Initial Public Offering of shares of Class A Common Stock (the Public Shares) at a price of $10.00 per share, raising total gross proceeds of $230 million. Since its Initial Public Offering, DYNS’s activity has been limited to the evaluation of business combination candidates.
Senti’s mission is to create a new generation of smarter therapies that can outmaneuver complex diseases in ways previously not implemented by conventional medicines. To accomplish this mission, Senti has built a synthetic biology platform that it believes may enable it to program next-generation cell and gene therapies with what it refers to as “gene circuits.” These gene circuits, which Senti created from novel and proprietary combinations of genetic parts, are designed to reprogram cells with biological logic to sense inputs, compute decisions and respond to their respective cellular environments. Senti aims to design and optimize gene circuits through its Design-Build-Test-Learn Engine, or DBTL Engine, to improve the “intelligence” of cell and gene therapies in order to enhance their therapeutic effectiveness against a broad range of diseases that conventional medicines are unable to address. Senti’s gene circuit platform technologies can be applied in a modality-agnostic manner, with applicability to natural killer (NK) cells, T cells, tumor infiltrating lymphocytes (TILs), stem cells including hematopoietic stem cells (HSCs),
in vivo
gene therapy and messenger ribonucleic acid (mRNA). All of Senti’s current product candidates are in preclinical development. Senti’s lead product candidates currently utilize allogeneic chimeric antigen receptor (CAR) NK cells outfitted with its gene circuit technologies in several oncology indications with currently high unmet need. Subject to the successful identification of lead product candidates and completion of IND-enabling studies, Senti expects to file investigational new drug applications, or INDs, for multiple product candidates starting in 2023.
 
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Based on its due diligence investigations of Senti and the industry in which Senti operates, including the financial and other information provided by Senti in the course of the negotiations in connection with the Business Combination Agreement, DYNS believes that Senti has an appealing market opportunity and growth profile and a compelling valuation. As a result, DYNS believes that the Business Combination with Senti will provide DYNS stockholders with an opportunity to participate in the ownership of a company with significant value. See the section entitled “
Proposal 1: The Business Combination Proposal
 — The Board’s Reasons for Approval of the Business Combination
.”
 
Q:
Do I have redemption rights?
 
A:
If you are a DYNS stockholder holding Public Shares (a Public Stockholder), you have the right to demand that DYNS redeem your Public Shares for a pro rata portion of the cash held in the Trust Account. We sometimes refer to these rights to demand redemption of the Public Shares as “redemption rights.”
Notwithstanding the foregoing, a DYNS stockholder, together with any affiliate or any other person with whom such holder is acting in concert or as a “group” (as defined in Section 13 of the Exchange Act), will be restricted from exercising redemption rights with respect to more than an aggregate of 15% of the Public Shares without the prior consent of DYNS.
The underwriting fees payable in connection with our Initial Public Offering (some of which the underwriter agreed to defer at the time the Initial Public Offering was consummated) are fixed regardless of the level of redemptions from our Trust Account in connection with the Business Combination. Please see the section of this proxy statement/prospectus entitled “
Summary of the Proxy Statement/Prospectus – Underwriting Fees as a Percentage of Initial Public Offering Proceeds Net of Redemptions
” for further information.
 
Q:
How do I exercise my redemption rights?
 
A:
A Public Stockholder may exercise redemption rights regardless of whether they vote on the Business Combination Proposal or if they are a stockholder on the Record Date. If you are a Public Stockholder and wish to exercise your redemption rights, you must demand that DYNS redeem your Public Shares for cash and deliver your Public Shares to DYNS’s transfer agent, Continental, at Continental Stock Transfer & Trust Company, One State Street Plaza, 30
th
Floor, New York, New York 10004, Attn: Mark Zimkind, physically or electronically using mzimkind@continentalstock.com, at least two business days before the Special Meeting, or                 , 2022. Rather than delivering your Public Shares directly to Continental, you may also deliver your Public Shares either physically or electronically through DTC to Continental at least two business days before the Special Meeting. Any Public Stockholder seeking redemption will be entitled to a full pro rata portion of the amount then in the Trust Account (which, for illustrative purposes, was $            , or approximately $             per share, as of the Record Date), including interest earned but less any owed but unpaid franchise and income taxes. Such amount will be paid promptly upon consummation of the Business Combination. There are currently no owed but unpaid franchise or income taxes on the funds in the Trust Account.
Any request for redemption, once made by a Public Stockholder, may be withdrawn at any time prior to the time the vote is taken with respect to the Business Combination Proposal at the Special Meeting. If you deliver your Public Shares for redemption directly to Continental, or deliver your Public Shares either physically or electronically through DTC to Continental, and later decide prior to the Special Meeting not to elect redemption, you may request that Continental return the shares (physically or electronically). You may make such request by contacting Continental at the phone number or address set forth above.
Any written demand of redemption rights must be received by Continental at least two business days prior to the vote taken on the Business Combination Proposal at the Special Meeting. No demand for redemption will be honored unless the Public Stockholder’s stock has been delivered (either physically or electronically) to Continental.
 
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Q:
What is a Non-Redemption Agreement?
 
A:
In an effort to reduce the number of redemptions of Public Shares at Closing,
Non-Redemption
Agreements were entered into with the Anchor Investors. Pursuant to the Non-Redemption Agreements, the Anchor Investors agreed to, among other things, not redeem the Public Shares beneficially owned by them as at the date the Non-Redemption Agreements were signed, and to not, subject to certain exceptions, transfer such Public Shares. These commitments apply in respect of 8,109,337 Public Shares in the aggregate as at the date of filing of this proxy statement/prospectus. In connection with these commitments from the Anchor Investors, the Sponsor has agreed to forfeit 965,728 Founder Shares and DYNS agreed to cancel such Founder Shares and concurrently issue to such investors an equivalent number of shares of Class A Common Stock, in each case, at or promptly following Closing, thereby potentially increasing the Anchor Investors’ ownership interest in New Senti. The potential issuance of such shares of Class A Common Stock to the Anchor Investors is the only consideration which they will potentially receive in connection with their agreement not to redeem their Public Shares. The Anchor Investors are not affiliated with or otherwise interested in DYNS or the Sponsor (except in respect of their ownership of Public Shares).
Separately, the Sponsor and DYNS’s other initial stockholders, which are affiliates of the Sponsor, in connection with and as partial consideration for DYNS proceeding with the Initial Public Offering, and for the covenants and commitments of DYNS set forth in a letter agreement with our Sponsor (the “IPO letter agreement”) (but, for the avoidance of doubt, for no other or additional consideration in connection with the Business Combination), have agreed to waive their redemption rights with respect to any Founder Shares, Private Placement Shares or Public Shares which they may hold, and the Sponsor has also agreed to waive its redemption rights with respect to any other equity securities it holds.
 
Q:
Do I have appraisal rights if I object to the proposed Business Combination?
 
A:
No. DYNS stockholders do not have appraisal rights in connection with the proposed Business Combination under Delaware law.
 
Q:
What happens if a substantial number of stockholders vote in favor of the Business Combination Proposal and exercise redemption rights?
 
A:
Public Stockholders may vote in favor of the Business Combination and still exercise their redemption rights and are not required to vote in any way to exercise their redemption rights. Accordingly, the Business Combination may be consummated even though the funds available from the Trust Account and the number of Public Shares are substantially reduced as a result of redemptions by Public Stockholders (however, the condition to the consummation of the Business Combination requiring that DYNS have at least $5,000,001 of net tangible assets may not be waived). Also, with fewer Public Shares and Public Stockholders, the trading markets for Class A Common Stock following the closing of the Business Combination (which will be New Senti Common Stock) may be less liquid than the market for Class A Common Stock was prior to the Business Combination and New Senti may not be able to meet the listing standards of a national securities exchange, including Nasdaq. In addition, with fewer funds available from the Trust Account, the capital infusion from the Trust Account into New Senti’s business will be reduced and New Senti may not be able to achieve its business plans.
 
Q:
How do the Sponsor and the officers and directors of DYNS intend to vote on the Proposals?
 
A:
The Sponsor, as well as DYNS’s officers and directors, beneficially own and are entitled to vote an aggregate of approximately 21.9% of the outstanding DYNS Common Stock as of the Record Date. These holders have agreed to vote their shares in favor of the Business Combination Proposal. These holders have also agreed to vote their shares in favor of all other Proposals being presented at the Special Meeting.
 
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Q:
What do I need to do now?
 
A:
DYNS urges you to carefully read and consider the information contained in this proxy statement/prospectus, including the Annexes, and to consider how the Business Combination will affect you as a stockholder of DYNS. DYNS stockholders should then vote as soon as possible in accordance with the instructions provided in this proxy statement/prospectus and on the enclosed proxy card.
 
Q:
How do I vote?
 
A:
If you are a holder of record of DYNS Common Stock on the Record Date, you may vote virtually at the Special Meeting or by submitting a proxy for the Special Meeting. You may submit your proxy by completing, signing, dating and returning the enclosed proxy card in the accompanying
pre-addressed
postage paid envelope. If you hold your shares in “street name,” which means your shares are held of record by a broker, bank or nominee, you should contact your broker, bank or nominee to ensure that votes related to the shares you beneficially own are properly counted. In this regard, you must provide the broker, bank or nominee with instructions on how to vote your shares or, if you wish to attend the meeting and vote in person (which would include presence at a virtual meeting), obtain a legal proxy from your broker, bank or nominee.
If you do not give instructions to your brokerage firm, the brokerage firm will not be allowed to vote your shares with respect to the Proposals. The Proposals are
“non-discretionary”
items. Your broker may not vote for
non-discretionary
items, and those votes will be counted as broker
“non-votes.”
After obtaining a valid legal proxy from your broker, bank or nominee, to register to attend the Special Meeting, you must submit proof of your legal proxy reflecting the number of your shares along with your name and email address to Continental at [proxy@continentalstock.com]. Beneficial owners who
e-mail
a valid legal proxy will be issued a
12-digit
meeting control number that will allow them to register to attend and participate in the Special Meeting. Beneficial owners who wish to attend the Special Meeting online should contact Continental no later than                 , 2022 to obtain this information. Written requests can be emailed to [proxy@continentalstock.com].
 
Q:
If my shares are held in “street name,” will my broker, bank or nominee automatically vote my shares for me?
 
A:
No. Your broker, bank or nominee cannot vote your shares unless you provide instructions on how to vote in accordance with the information and procedures provided to you by your broker, bank or nominee.
 
Q:
May I change my vote after I have mailed my signed proxy card?
 
A:
Yes. DYNS stockholders may send a later-dated, signed proxy card to Continental at the address set forth above so that it is received prior to the vote at the Special Meeting or attend the Special Meeting virtually and vote. DYNS stockholders may also revoke their proxy by sending a notice of revocation to Continental, which must be received prior to the vote at the Special Meeting.
 
Q:
What happens if I fail to take any action with respect to the Special Meeting?
 
A:
If you fail to take any action with respect to the Special Meeting and the Business Combination is approved by stockholders and consummated, you will continue to be a holder of Class A Common Stock (which will be New Senti Common Stock). As a corollary, failure to deliver (either physically or electronically) your stock certificate(s) to DYNS’s transfer agent, Continental, no later than two business days prior to the Special Meeting, means you will not have any right in connection with the Business Combination to exchange your Public Shares for a pro rata share of the funds held in the Trust Account. If you fail to take any action with respect to the Special Meeting and the Business Combination is not approved, you will continue to be a stockholder of DYNS.
 
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Q:
What should I do with my share certificate(s)?
 
A:
Those Public Stockholders who do not elect to have their Public Shares redeemed for a pro rata share of the funds held in the Trust Account need not submit their certificate(s). Public Stockholders who exercise their redemption rights must deliver their share certificate(s) to Continental (either physically or electronically) or through DTC to Continental at least two business days before the Special Meeting, as described above.
 
Q:
What should I do if I receive more than one set of voting materials?
 
A:
DYNS stockholders may receive more than one set of voting materials, including multiple copies of this proxy statement/prospectus and multiple proxy cards or voting instruction cards. For example, if you hold your DYNS shares in more than one brokerage account, you will receive a separate voting instruction card for each brokerage account in which you hold such shares. If you are a holder of record and your DYNS shares are registered in more than one name, you will receive more than one proxy card. Please complete, sign, date and return each proxy card and voting instruction card that you receive in order to cast a vote with respect to all of your DYNS shares.
 
Q:
Who can help answer my questions?
 
A:
If you have questions about the Business Combination or if you need additional copies of this proxy statement/prospectus or the enclosed proxy card, you should contact:
You may also obtain additional information about DYNS from documents filed with the SEC by following the instructions in the section entitled “
Where You Can Find More Information.
” If you are a DYNS stockholder and you intend to seek redemption of your shares, you will need to deliver your Public Shares (either physically or electronically) to Continental (or through DTC to Continental) at the address listed below at least two business days prior to the vote at the Special Meeting. If you have questions regarding the certification of your position or delivery of your stock, please contact:
Continental Stock Transfer & Trust Company
One State Street Plaza, 30
th
 Floor
New York, New York 10004
Attn: Mark Zimkind
E-mail:
mzimkind@continentalstock.com
 
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SUMMARY OF THE PROXY STATEMENT/PROSPECTUS
This summary highlights selected information from this proxy statement/prospectus and does not contain all of the information that is important to you. To better understand the Proposals to be submitted for a vote at the Special Meeting, including the Business Combination Proposal, you should read this entire document carefully, including the Annexes attached to this proxy statement/prospectus. The Business Combination Agreement is the primary legal document that governs the Business Combination and other transactions that will be undertaken in connection with the Business Combination. It is described in detail in this proxy statement/prospectus in the section entitled “Proposal 1: The Business Combination Proposal.”
The Parties
DYNS
Dynamics Special Purpose Corp. is a blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. DYNS was incorporated under the laws of the State of Delaware on March 1, 2021.
On May 28, 2021, DYNS closed its Initial Public Offering of 23,000,000 shares of Class A Common Stock (the Public Shares). The shares of Class A Common Stock were sold at an offering price of $10.00 per share, generating gross proceeds of $230 million. The Initial Public Offering was conducted pursuant to a registration statement on
Form S-1
(File
No. 333-255930).
Simultaneously with the consummation of the Initial Public Offering, DYNS consummated the Concurrent Private Placement of 715,500 shares of Class A Common Stock (the Private Placement Shares) at $10.00 per share, generating gross proceeds of $7,155,000. A total of $230 million, comprised of $225,400,000 of the net proceeds from the Initial Public Offering (which amount included $8,050,000 of the underwriter’s deferred underwriting fee (prior to such amount being reduced to $7,050,000, as described in this proxy statement/prospectus)) and $4,600,000, representing part of the proceeds of the sale of the Private Placement Shares, was deposited into the Trust Account, and the remaining proceeds, net of underwriting discounts and commissions and other costs and expenses, became available to be used by DYNS as working capital to provide for business, legal and accounting due diligence on prospective business combinations and continuing general and administrative expenses. As of the Record Date, there was $             held in the Trust Account.
DYNS’s Class A Common Stock is listed on Nasdaq under the symbol “DYNS.”
The mailing address of DYNS’s principal executive office is 2875 El Camino Real, Redwood City, California 94061, and its telephone number is (408)
212-0200.
After the consummation of the Business Combination, DYNS’s principal executive office will be that of Senti.
For additional information about DYNS, see the section entitled “
Information about DYNS
.”
Merger Sub
Merger Sub is a wholly-owned subsidiary of DYNS, formed solely for the purpose of effectuating the Business Combination described herein. Merger Sub was incorporated under the laws of the State of Delaware on December 14, 2021. Merger Sub owns no material assets and does not operate any business.
The mailing address of Merger Sub’s principal executive office is 2875 El Camino Real, Redwood City, California 94061, and its telephone number is (408)
212-0200.
After the consummation of the Business Combination, Merger Sub will cease to exist.
 
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Senti
Senti Biosciences, Inc. is a preclinical biotechnology company developing next-generation cell and gene therapies engineered with its gene circuit platform technologies to fight challenging diseases. Senti’s mission is to create a new generation of smarter therapies that can outmaneuver complex diseases in ways previously not implemented by conventional medicines. To accomplish this mission, Senti has built a synthetic biology platform that it believes may enable it to program next-generation cell and gene therapies with what it refers to as “gene circuits.” These gene circuits, which Senti created from novel and proprietary combinations of genetic parts, are designed to reprogram cells with biological logic to sense inputs, compute decisions and respond to their respective cellular environments. Senti aims to design and optimize gene circuits through its Design-Build-Test-Learn Engine, or DBTL Engine, to improve the “intelligence” of cell and gene therapies in order to enhance their therapeutic effectiveness against a broad range of diseases that conventional medicines are unable to address. Senti’s gene circuit platform technologies can be applied in a modality-agnostic manner, with applicability to natural killer (NK) cells, T cells, tumor infiltrating lymphocytes (TILs), stem cells including hematopoietic stem cells (HSCs),
in vivo
gene therapy and messenger ribonucleic acid (mRNA). All of Senti’s current product candidates are in preclinical development. Senti’s lead product candidates currently utilize allogeneic chimeric antigen receptor (CAR) NK cells outfitted with its gene circuit technologies in several oncology indications with currently high unmet need. Subject to the successful identification of lead product candidates and completion of IND-enabling studies, Senti expects to file investigational new drug applications, or INDs, for multiple product candidates starting in 2023.
Senti was incorporated under the laws of the State of Delaware on June 9, 2016. The mailing address of Senti’s principal executive office is 2 Corporate Drive, First Floor, South San Francisco, California 94080, and its telephone number is (650) 382-3281.
For additional information about Senti, see the section entitled “
Information about Senti.
Going Concern
Senti has concluded that its recurring losses from operations and need for additional financing to fund future operations raise substantial doubt about its ability to continue as a going concern. Similarly, Senti’s independent registered public accounting firm included an explanatory paragraph in its report on Senti’s consolidated financial statements as of and for the year ended December 31, 2021 with respect to this uncertainty.
Emerging Growth Company
DYNS is an “emerging growth company,” as defined under the JOBS Act. As an emerging growth company, DYNS is eligible to take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies. These include, but are not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a non-binding advisory vote on executive compensation and the requirement to obtain stockholder approval of any golden parachute payments not previously approved.
New Senti will remain an emerging growth company until the earlier of (1) December 31, 2026 (the last day of the fiscal year following the fifth anniversary of the consummation of the Initial Public Offering), (2) the last day of the fiscal year in which New Senti has total annual gross revenue of at least $1.07 billion, (3) the last day of the fiscal year in which New Senti is deemed to be a “large accelerated filer,” as defined in the Exchange Act, and (4) the date on which New Senti has issued more than $1.0 billion in nonconvertible debt securities during the prior three-year period.
The Business Combination Proposal
Pursuant to the Business Combination Agreement, a Business Combination between DYNS and Senti will be effected whereby Merger Sub will merge with and into Senti, with Senti surviving as a wholly-owned subsidiary of DYNS.
 
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After consideration of the factors identified and discussed in the section entitled “
Proposal 1: The Business Combination Proposal — The Board’s Reasons for Approval of the Business Combination
,” our Board concluded that the Business Combination should be approved.
The terms and conditions of the Business Combination are contained in the Business Combination Agreement, which is attached to this proxy statement/prospectus as
Annex
 A
and is incorporated by reference herein in its entirety. DYNS encourages you to read the Business Combination Agreement carefully, as it is the primary legal document that governs the Business Combination. For more information on the Business Combination Agreement, see the section entitled “
Proposal 1: The Business Combination Proposal
.”
Business Combination Consideration
Pursuant to the Business Combination Agreement:
 
   
Each outstanding share of Senti common stock held by the Sellers immediately before the Effective Time will be cancelled and converted into the right to receive a number of shares of Class A Common Stock equal to the Exchange Ratio (rounded down to the nearest whole share).
 
   
Each outstanding share of Senti preferred stock held by the Sellers immediately before the Effective Time will be cancelled and converted into the right to receive a number of shares of Class A Common Stock equal to (A) the aggregate number of shares of Senti common stock that would be issued upon conversion of the shares of Senti preferred stock based on the applicable conversion ratio immediately prior to the Effective Time, multiplied by (B) the Exchange Ratio (rounded down to the nearest whole share).
 
   
Each outstanding Senti option held immediately before the Effective Time will be converted into an option to purchase a number of shares of Class A Common Stock (rounded down to the nearest whole share) equal to (A) the number of shares of Senti common stock subject to such option as at the time immediately before the Effective Time, multiplied by (B) the Exchange Ratio, at an exercise price per share equal to the current exercise price per share for such option divided by the Exchange Ratio (rounded up to the nearest whole cent).
Following the Closing, the Sellers may also be eligible to receive Contingency Consideration of up to an aggregate of 2,000,000 shares of Class A Common Stock (which would be shares of New Senti Common Stock) based on the share price of New Senti Common Stock following the Business Combination or, in certain circumstances, upon the occurrence of a change in control of New Senti. See the section titled “
Proposal 1: The Business Combination Proposal — Structure of the Business Combination
.”
As of the Record Date, the Exchange Ratio was approximately 0.1953. Based on this Exchange Ratio, the total number of shares of Class A Common Stock expected to be issued at the Closing (not including shares that will be issuable upon exercise of outstanding stock options) is approximately 22,916,991 shares, and these shares are expected to represent between approximately 38.8% and 51.9% of the issued and outstanding shares of Class A Common Stock immediately following the closing of the PIPE Investment and the Business Combination, assuming, at the low end of that range, no redemptions from our Trust Account occur, and, at the high end of that range, maximum redemptions from our Trust Account occur, and assuming that no shares of Class A Common Stock subject to Non-Redemption Agreements as at the date of this proxy statement/prospectus are redeemed. Please see the section entitled “
Unaudited Pro Forma
Condensed Combined Financial Information”
for further information regarding what constitutes a “maximum redemption” scenario.
The Board’s Reasons for Approval of the Business Combination
The Board considered a wide variety of factors in connection with its evaluation of the Business Combination. In light of the complexity of those factors, the Board, as a whole, did not consider it practicable to,
 
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nor did it attempt to, quantify or otherwise assign relative weights to the specific factors it took into account in reaching its decision. Individual members of the Board may have given different weight to different factors.
For a more complete description of the Board’s reasons for the approval of the Business Combination and its recommendation in favor of the Business Combination Proposal, please see the section entitled “
Proposal 1: The Business Combination — The Board’s Reasons for Approval of the Business Combination.
Accounting Treatment
Notwithstanding the legal form, the Business Combination will be accounted for as a reverse recapitalization in accordance with U.S. generally accepted accounting principles (“GAAP”). Under this method of accounting, DYNS will be treated as the acquired company for financial reporting purposes, whereas Senti will be treated as the accounting acquiror. In accordance with this accounting method, the Business Combination will be treated as the equivalent of Senti issuing stock for the net assets of DYNS, accompanied by a recapitalization. The net assets of Senti will be stated at historical cost, with no goodwill or other intangible assets recorded, and operations prior to the Business Combination will be those of Senti. Senti has been determined to be the accounting acquiror for purposes of the Business Combination based on an evaluation of the following facts and circumstances:
 
   
if the Director Election Proposal is approved by DYNS stockholders, persons affiliated with Senti will control a majority of the governing body of New Senti;
 
   
Senti’s operations prior to the Business Combination will comprise the ongoing operations of New Senti; and
 
   
Senti’s existing senior management team will comprise the senior management team of the Combined Company.
Pro Forma Ownership of New Senti Upon Closing
Immediately after the Closing, assuming no Public Stockholder exercises its redemption rights and no additional shares are issued prior to Closing, the Sellers will own approximately 38.8% of the shares of DYNS Common Stock to be outstanding immediately after the Business Combination, Public Stockholders will own approximately 40.6% of the shares of DYNS Common Stock, the Sponsor will own approximately 9.3% of the shares of DYNS Common Stock and the PIPE Investors will own approximately 11.3% of the shares of DYNS Common Stock, in each case, based on the number of shares of Class A Common Stock and Class B Common Stock outstanding as of the Record Date. These pro forma ownership percentages also (a) assume no exercise of any options to purchase Class A Common Stock that will be outstanding immediately following the Business Combination, whether such options are issued under the Incentive Plan or otherwise, (b) exclude the issuance of any shares in connection with the Incentive Plan and the ESPP following the Business Combination, (c) exclude the Contingency Consideration, if any, and (d) assume that 965,728 Founder Shares are forfeited by the Sponsor and cancelled, with the Anchor Investors concurrently being issued an equivalent number of shares of Class A Common Stock in connection with the Non-Redemption Agreements. If the actual facts are different from the assumptions stated above, then the levels of ownership interest set forth above will be different. For more information, please see the section entitled “
Unaudited Pro Forma Condensed Combined Financial Information
.”
Additional Matters Being Voted On By DYNS Stockholders
In addition to voting on the Business Combination Proposal, DYNS stockholders will vote on the following Proposals.
The Charter Amendment Proposal
Assuming the Business Combination Proposal is approved and adopted, DYNS stockholders will vote on a proposal to approve the Proposed Charter, which will amend and restate the Current Charter, and amended
 
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bylaws for the Combined Company. If approved, the Proposed Charter and amended
by-laws
will be in effect upon the Closing. See the section entitled “
Proposal 2: The Charter Amendment Proposal
.” A copy of the Proposed Charter and the amended bylaws is attached to this proxy statement/prospectus as
Annex
 B
.
The Advisory Charter Amendment Proposals
On a
non-binding
advisory basis, DYNS stockholders will vote on a proposal to approve the Advisory Charter Amendment Proposals, which are being presented pursuant to guidance of the SEC as seven separate
sub-proposals.
See the section entitled “
Proposal 3: The Advisory Charter Amendment Proposals.
The Nasdaq Stock Issuance Proposal
Assuming the Business Combination Proposal is approved and adopted, for purposes of complying with the applicable provisions of Nasdaq Listing Rule 5635, DYNS stockholders will vote on (a) the issuance of up to 26,000,000 shares of Class A Common Stock in connection with the Business Combination, and (b) the issuance of an aggregate of 6,680,000 shares of Class A Common Stock in connection with the PIPE Investment concurrent with the Closing. See the section entitled “
Proposal 4: The Nasdaq Stock Issuance Proposal.
The Director Election Proposal
Assuming the Business Combination Proposal is approved and adopted, holders of Class B Common Stock will vote on a proposal to approve of the appointment of seven directors who, upon consummation of the Business Combination, will become the directors of the Combined Company. See the section entitled “
Proposal 5: The Director Election Proposal
.”
The Incentive Plan Proposal
Assuming the Business Combination Proposal is approved and adopted, DYNS stockholders will vote on a proposal to approve the Incentive Plan, which will become effective as of and contingent on the consummation of the Business Combination. See the section entitled “
Proposal 6: The Incentive Plan Proposal.
The ESPP Proposal
Assuming the Business Combination Proposal is approved and adopted, DYNS stockholders will vote on a proposal to approve the ESPP, which will become effective as of and contingent on the consummation of the Business Combination. See the section entitled
“Proposal 7: The ESPP Proposal.”
The Adjournment Proposal
DYNS stockholders will be asked to consider and vote upon a proposal to adjourn the Special Meeting to a later date or dates if it is determined that more time is necessary or appropriate, in the judgment of the Board or the officer presiding over the Special Meeting, for DYNS to consummate the Business Combination (including to solicit additional votes in favor of any of the Proposals). See the section entitled “
Proposal 8: The Adjournment Proposal
.”
DYNS’s Sponsor and Officers and Directors
As of the Record Date, the Sponsor and DYNS’s officers and directors beneficially owned and were entitled to vote an aggregate of 6,465,500 shares of DYNS Common Stock. The shares owned by the Sponsor and DYNS’s officers and directors currently constitute approximately 21.9% of the outstanding DYNS Common Stock.
 
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In connection with the Initial Public Offering, the Sponsor and each of DYNS’s officers and directors agreed to vote their Founder Shares, Private Placement Shares and any Public Shares they hold in favor of an initial business combination (including any proposals recommended by the Board in connection with such business combination). This commitment would extend to include the Business Combination Proposal and the other Proposals.
In connection with the Initial Public Offering, the Sponsor and the directors and officers of DYNS entered into a
lock-up
agreement pursuant to which they agreed not to transfer the Founder Shares (subject to limited exceptions) until one year after the consummation of an initial business combination or earlier if, subsequent to the consummation of an initial business combination, (i) the last sale price of Class A Common Stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any
30-trading
day period commencing at least 150 days after the initial business combination, or (ii) New Senti consummates a subsequent liquidation, merger, stock exchange, reorganization or other similar transaction that results in all of its Public Stockholders having the right to exchange their shares of Class A Common Stock for cash, securities or other property. Additionally, the holders of Private Placement Shares purchased in the Concurrent Private Placement agreed not to transfer such shares (subject to limited exceptions) until 30 days after the consummation of an initial business combination (together with the
lock-up
described in the preceding sentence, the “Existing Sponsor
Lock-ups”).
In connection with DYNS’s entry into the Business Combination Agreement, pursuant to the sponsor support agreement, a copy of which is exhibited to the Business Combination Agreement (the “Sponsor Support Agreement”), and effective as of the consummation of the Closing, the Existing Sponsor
Lock-ups
will be replaced with the
lock-up
arrangements described in the Investor Rights Agreement further described in the section entitled “
Proposal 1: The Business Combination Agreement
Related Agreements
– Investor Rights Agreement”
.
Special Meeting Information
Date, Time and Place of Special Meeting
The Special Meeting will be held virtually on              2022, at         AM, Eastern Time, at
        
. DYNS stockholders may attend, vote and examine the list of DYNS stockholders entitled to vote at the Special Meeting by visiting              and entering the control number found on their proxy card, voting instruction form or notice they previously received. In light of public health concerns regarding the coronavirus
(COVID-19),
the Special Meeting will be held in a virtual meeting format only. You will not be able to attend the Special Meeting physically.
Voting Power; Record Date
DYNS stockholders will be entitled to vote or direct votes to be cast at the Special Meeting if they owned DYNS Common Stock at the close of business on             , 2022, which is the Record Date for the Special Meeting. Stockholders will have one vote for each share of DYNS Common Stock owned at the close of business on the Record Date in respect of each Proposal on which they are entitled to vote. If your shares are held in “street name” or are in a margin or similar account, you should contact your broker to ensure that votes related to the shares you beneficially own are properly counted. On the Record Date, there were 29,465,500 shares of DYNS Common Stock entitled to vote at the Special Meeting, of which 6,465,500 were owned by the Sponsor or an affiliate thereof.
Quorum and Vote of DYNS Stockholders
A quorum of DYNS stockholders is necessary to hold a valid meeting. A quorum will be present at the Special Meeting if a majority of the voting power of all outstanding shares of DYNS Common Stock entitled to vote at the meeting are represented in person (which would include presence at a virtual meeting) or by proxy. As of the Record Date, there were 23,715,500 shares of Class A Common Stock and 5,750,000 shares of Class B Common Stock outstanding; therefore, a total of 14,732,751 shares of DYNS Common Stock must be
 
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represented at the Special Meeting in order to constitute a quorum. Abstentions and withheld votes will count as present for the purposes of establishing a quorum, but will not count as votes cast at the Special Meeting for any of the Proposals. Because the Proposals are
“non-discretionary”
items, your broker will not be able to vote uninstructed shares for any of the Proposals. As a result, if you do not provide voting instructions, a broker
“non-vote”
will be deemed to have occurred for each of the Proposals. Broker
“non-votes”
will not be counted as present for purposes of determining whether a quorum is present. As of the Record Date, the Sponsor holds approximately 21.9% of the outstanding DYNS Common Stock.
The Proposals presented at the Special Meeting will require the following votes:
 
   
The approval of the Business Combination Proposal will require the affirmative vote of the holders of a majority of the shares of DYNS Common Stock cast in respect of that Proposal and entitled to vote thereon at the Special Meeting, voting as a single class.
 
 
The approval of the Charter Amendment Proposal will require the affirmative vote of the holders of a majority of the issued and outstanding shares of each of the Class A Common Stock and Class B Common Stock, voting separately, as well as the vote of the holders of a majority of the issued and outstanding shares of Class A Common Stock and Class B Common Stock, voting together as a single class. Accordingly, a DYNS stockholder’s failure to vote by proxy or in person (which would include presence at a virtual meeting) at the Special Meeting or an abstention will have the same effect as a vote “AGAINST” the Charter Amendment Proposal.
 
   
The approval of each of the Nasdaq Stock Issuance Proposal, the Incentive Plan Proposal, the ESPP Proposal, the Adjournment Proposal and each of the Advisory Charter Amendment Proposals will require the affirmative vote of the holders of a majority of the shares of DYNS Common Stock cast in respect of the relevant Proposal and entitled to vote thereon at the Special Meeting, voting as a single class.
 
   
The Director Election Proposal will require a plurality vote of the shares of DYNS Class B Common Stock cast in respect of that Proposal and entitled to vote thereon at the Special Meeting. “Plurality” means that the individuals who receive the largest number of votes cast “FOR” are elected as directors. Consequently, any shares not voted “FOR” a particular nominee (whether as a result of an abstention, a direction to withhold authority or a broker
non-vote)
will not be counted in the nominee’s favor.
Abstentions, withheld votes and broker
non-votes
will have no effect on any of the Proposals that will be presented at the Special Meeting, aside from those effects set forth above.
Consummation of the Business Combination is conditioned on approval of the Business Combination Proposal, the Charter Amendment Proposal, the Nasdaq Stock Issuance Proposal, the Director Election Proposal, the Incentive Plan Proposal and the ESPP Proposal (and each such Proposal is cross-conditioned on the approval of such other Proposals). If any of these Proposals is not approved, the other Proposals will not be presented to stockholders for a vote.
Redemption Rights of DYNS Stockholders
Pursuant to the Current Charter, any holders of Public Shares may demand that such shares be redeemed in exchange for a pro rata share of the aggregate amount on deposit in the Trust Account, including interest earned on the funds in the Trust Account but less franchise and income taxes payable. If demand is properly made and the Business Combination is consummated, those Public Shares will, at the Closing, cease to be outstanding and will represent only the right to receive a pro rata share of the aggregate amount then on deposit in the Trust Account. For illustrative purposes, based on funds in the Trust Account of $
                
on the Record Date, the estimated per share redemption price would have been approximately $
                
.
 
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In order to exercise your redemption rights, you must:
 
   
check the box on the enclosed proxy card to elect redemption;
 
   
provide, in the written request to redeem your Public Shares for cash to Continental, DYNS’s transfer agent, a “Stockholder Certification” if you are not acting in concert or as a “group” (as defined in Section 13 of the Exchange Act) with any other stockholder with respect to shares of DYNS Common Stock; and
 
   
prior to                 , 2022 (two business days before the Special Meeting), tender your shares physically or electronically and submit a request in writing that DYNS redeem your Public Shares for cash to Continental at the following address:
Continental Stock Transfer & Trust Company
One State Street Plaza, 30
th
 Floor
New York, New York 10004
Attn: Mark Zimkind
E-mail:
mzimkind@continentalstock.com; or
deliver your Public Shares, either physically or electronically through DTC to Continental, at least two business days before the Special Meeting. Public Stockholders seeking to exercise their redemption rights and opting to deliver physical certificates should allot sufficient time to obtain physical certificates from Continental and time to effect delivery. It is DYNS’s understanding that stockholders should generally allot at least two weeks to obtain physical certificates from Continental. However, DYNS does not have any control over this process and it may take longer than two weeks. Stockholders who hold their Public Shares in “street” name will have to coordinate with their bank, broker or other nominee to have the shares certificated or delivered electronically. If you do not submit a written request and deliver your Public Shares as described above, your shares will not be redeemed.
Any request for redemption, once made by a Public Stockholder, may be withdrawn at any time prior to the time the vote is taken with respect to the Business Combination Proposal at the Special Meeting. If you deliver your Public Shares for redemption directly to Continental or deliver your Public Shares either physically or electronically through DTC to Continental, and later decide prior to the Special Meeting not to elect redemption, you may request that Continental return the shares (physically or electronically). You may make such request by contacting Continental at [(917)
262-2373],
by email at [proxy@continentalstock.com] or by writing to the address listed above.
Prior to exercising redemption rights, Public Stockholders should verify the market price of shares of Class A Common Stock as they may receive higher proceeds from the sale of their shares of Class A Common Stock in the public market than from exercising their redemption rights if the market price per share is higher than the redemption price. We cannot assure you that you will be able to sell your shares of Class A Common Stock in the open market, even if the market price per share is higher than the redemption price stated above, as there may not be sufficient liquidity in Class A Common Stock when you wish to sell your shares.
If you exercise your redemption rights, your shares of Class A Common Stock will cease to be outstanding at the Closing and will only represent the right to receive a pro rata share of the aggregate amount on deposit in the Trust Account, as described above. You will no longer own those shares and will have no right to participate in, or have any interest in, the future growth of the Combined Company, if any. You will be entitled to receive cash for your Public Shares only if you properly and timely demand redemption, in accordance with the process described above.
If the Business Combination is not approved or completed for any reason, then Public Stockholders who elected to exercise their redemption rights will not be entitled to redeem their shares. In such case DYNS will promptly return any Public Shares previously delivered by the Public Stockholders.
 
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Underwriting Fees as a Percentage of Initial Public Offering Proceeds Net of Redemptions
 
    
No
redemptions
(2)
   
Maximum
redemptions
(3)
 
IPO underwriting fees
(1)
   $ 11,650,000     $ 11,650,000  
  
 
 
   
 
 
 
IPO proceeds net of redemptions
   $ 230,000,000     $ 81,093,370  
  
 
 
   
 
 
 
Underwriting fees as a % of IPO proceeds net of redemptions (approx.)
     5.1     14.4
  
 
 
   
 
 
 
 
 
(1)
IPO underwriting fees expected to comprise (a) $4,600,000, which was paid at the time our Initial Public Offering was consummated, and (b) $7,050,000 of deferred underwriting fees (this amount having being reduced from $8,050,000 by $1,000,000 by agreement with J.P. Morgan on December 17, 2021).
 
(2)
This scenario assumes that no Public Shares are redeemed.
 
(3)
As at the date of this proxy statement/prospectus, there are 23,000,000 Public Shares issued and outstanding and 8,109,337 Public Shares subject to Non-Redemption Agreements. This scenario assumes that all 14,890,663 Public Shares that are not subject to Non-Redemption Agreements as at the date of this proxy statement/prospectus are redeemed, resulting in an aggregate payment of $148,906,630 out of the Trust Account (based on an assumed redemption price of $10.00 per share based on the Trust Account balance as at the Record Date).
Tax Consequences of Business Combination
For a description of the material U.S. federal income tax consequences of the Business Combination, please see the information set forth in the section entitled “
Material U.S. Federal Income Tax Considerations
.”
Appraisal Rights
DYNS stockholders do not have appraisal rights in connection with the Business Combination under Delaware law.
Regulatory Matters
Under the HSR Act and the rules that have been promulgated thereunder by the U.S. Federal Trade Commission (“FTC”), certain transactions may not be consummated unless information has been furnished to the Antitrust Division of the Department of Justice (“Antitrust Division”) and the FTC and certain waiting period requirements have been satisfied. The Business Combination is subject to these requirements and may not be completed until the expiration of a
30-day
waiting period following the filing of the required Notification and Report Forms with the Antitrust Division and the FTC or until early termination is granted. On January 10, 2022, DYNS and Senti filed their respective HSR Act Notification and Report Forms with the Antitrust Division and the FTC. Consequently, the required waiting period expired at 11:59 PM, Eastern Time, on February 9, 2022.
At any time before or after consummation of the Business Combination, notwithstanding expiration or termination of the waiting period under the HSR Act, the applicable competition authorities in the United States or any other applicable jurisdiction could take such action under applicable antitrust laws as such authority deems necessary or desirable in the public interest, including seeking to enjoin the consummation of the Business Combination, conditionally approving the Business Combination upon divestiture of certain of New Senti’s assets, subjecting the completion of the Business Combination to regulatory conditions or seeking other remedies. Private parties may also seek to take legal action under the antitrust laws under certain circumstances. DYNS cannot assure you that the Antitrust Division, the FTC, any state attorney general or any other government authority, or any private party, will not
 
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attempt to challenge the Business Combination on antitrust grounds, and, if such a challenge is made, DYNS cannot assure you as to its result. Under the Business Combination Agreement, DYNS and Senti are not obligated to sell, license or otherwise dispose of any entities, assets or facilities (or agree to do so), or terminate, assign or amend any existing relationships or contractual rights or obligations, or enter into new licenses or other contracts in order to obtain approval of the Business Combination by the FTC, the Antitrust Division or otherwise.
Neither DYNS nor Senti is aware of any material regulatory approvals or actions that are required for completion of the Business Combination other than the expiration of the waiting period under the HSR Act, which period has expired. It is presently contemplated that if any such additional regulatory approvals or actions are required, those approvals or actions will be sought. There can be no assurance, however, that any additional approvals or actions will be obtained.
Proxy Solicitation
Proxies may be solicited by mail, telephone or in person (which would include presence at a virtual meeting). DYNS has engaged              to assist in the solicitation of proxies. If a stockholder grants a proxy, they may still vote their shares in person (which would include presence at a virtual meeting) if they revoke their proxy before the Special Meeting. A stockholder may also change their vote by submitting a later-dated proxy as described in the section entitled “
Special Meeting of DYNS Stockholders — Revoking Your Proxy
.”
Interests of the Sponsor and DYNS’s Directors and Officers in the Business Combination
In considering the recommendation of the Board to vote in favor of approval of the Business Combination Proposal, the Charter Amendment Proposal and the other Proposals, DYNS stockholders should keep in mind that the Sponsor (which is affiliated with certain of DYNS’s officers and directors) and DYNS’s officers and directors have interests in such Proposals that are different from, or in addition to, your interests as a DYNS stockholder. These interests include, among other things:
 
   
If the Business Combination with Senti or another business combination is not consummated by May 28, 2023 (or such later date as may be approved by DYNS’s stockholders), DYNS will cease all operations except for the purpose of winding up, redeeming 100% of the outstanding Public Shares for cash and, subject to the approval of its remaining stockholders and its Board, dissolving and liquidating. In such event, (i) the 5,750,000 Founder Shares held by the Sponsor, which were acquired by the Sponsor for a purchase price of approximately $0.004 per share, or $25,000 in the aggregate, prior to the Initial Public Offering, and (ii) the 715,500 shares of Class A Common Stock purchased by the Sponsor for a purchase price of $10.00 per share, or $7,155,000 in the aggregate, in the Concurrent Private Placement, would be worthless because the holders are not entitled to participate in any redemption or distribution from the Trust Account with respect to such securities. Such securities had an aggregate market value of approximately $             million based upon the closing price of $             per share of Class A Common Stock on Nasdaq on the Record Date.
 
   
The fact that, given the differential between the purchase price that the Sponsor paid for the Founder Shares (which will convert to shares of Class A Common Stock in connection with the Business Combination) and the price of the Public Shares sold in the Initial Public Offering, the Sponsor may earn a positive rate of return on its investment even if the Class A Common Stock (or New Senti Common Stock) trades below the price paid for the Public Shares in the Initial Public Offering (and, consequently, the Public Stockholders experience a negative rate of return following the completion of the Business Combination). Specifically, the Sponsor (and DYNS’s officers and directors who are members of the Sponsor, or whose affiliates are members of the Sponsor) has invested an aggregate of $7,180,000 in DYNS securities, comprising the $25,000 purchase price for 5,750,000 Founder Shares (which, upon consummation of the Business Combination, will be reduced to 4,784,272 Founder Shares upon the forfeiture by the Sponsor of 965,728 Founder Shares in connection with the
 
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Non-Redemption
Agreements) and the $7,155,000 purchase price for 715,500 Private Placement Shares. Assuming a trading price of $             per share of New Senti Common Stock (based upon the closing price of $ per share of Class A Common Stock on Nasdaq on the Record Date), these 4,784,272 Founder Shares and 715,500 Private Placement Shares have an implied aggregate market value of $                . Accordingly, even if the trading price for shares of New Senti Common Stock following the Business Combination was as low as approximately $1.29 per share, the aggregate market value of the Founder Shares and Private Placement Shares (which would be shares of New Senti Common Stock) would be approximately equal to the initial investment in DYNS by the Sponsor (and DYNS’s officers and directors who are members of the Sponsor, or whose affiliates are members of the Sponsor). As a result, the Sponsor (and DYNS’s officers and directors who are members of the Sponsor, or whose affiliates are members of the Sponsor) are likely to be able to make a substantial profit on their investment in DYNS at a time when shares of New Senti Common Stock have lost significant value. On the other hand, and as noted in the bullet above, if DYNS does not complete a business combination by May 28, 2023 and liquidates, the Sponsor (and DYNS’s officers and directors who are members of the Sponsor, or whose affiliates are members of the Sponsor) will likely lose their entire investment in DYNS. These financial interests may mean that the Sponsor (and DYNS’s officers and directors who are members of the Sponsor, or whose affiliates are members of the Sponsor) may be incentivized to complete the Business Combination, or an alternative business combination, with a less favorable target company or on terms less favorable to stockholders than they would otherwise recommend or approve, as the case may be, rather than allow DYNS to wind up having failed to consummate a business combination and lose their entire investment.
 
   
If DYNS is unable to complete a business combination within the required time period, the Sponsor will be personally liable under certain circumstances described herein to ensure that the proceeds in the Trust Account are not reduced by the claims of target businesses or claims of vendors or other entities that are owed money by DYNS for services rendered or contracted for or products sold to DYNS. If, on the other hand, DYNS consummates a business combination, DYNS will be liable for all such claims.
 
   
The Business Combination Agreement provides for the continued indemnification of DYNS’s current directors and officers and the continuation of directors’ and officers’ liability insurance covering DYNS’s current directors and officers from and after the Effective Time for a period of six (6) years.
 
   
The fact that two of DYNS’s current directors and officers are expected to be directors of New Senti and, as such, may in the future receive cash fees, stock options, stock awards or other remuneration that the New Senti Board determines to pay to them.
 
   
None of DYNS’s officers or directors will be required to commit his or her full time to the affairs of New Senti and, accordingly, may have conflicts of interest in allocating his or her time among various business activities.
 
   
In the course of their other business activities, DYNS’s officers and directors may become aware of investment and business opportunities which may be appropriate for presentation to New Senti as well as the other entities with which they are affiliated. DYNS’s officers and directors may have conflicts of interest in determining to which entity a particular business opportunity should be presented.
 
   
The Sponsor and DYNS’s other initial stockholders have agreed to waive their redemption rights with respect to any shares of DYNS Common Stock they may hold in connection with the Business Combination. Additionally, our initial stockholders have agreed to waive any right, title, interest or claim regarding any monies held in the Trust Account, or any other asset of DYNS, in respect of the Founder Shares and Private Placement Shares, as a result of any liquidation of DYNS (including if we fail to consummate our initial business combination within 24 months after the closing of the Initial Public Offering). If DYNS does not complete an initial business combination within such applicable time period, the proceeds of the sale of the Private Placement Shares held in the Trust Account will be used to fund the redemption of the Public Shares, and the Private Placement Shares purchased in the Concurrent Private Placement will expire worthless. The Private Placement Shares purchased in the
 
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Concurrent Private Placement held by DYNS’s initial stockholders had an aggregate market value of $             million based upon the closing price of $             per DYNS share on Nasdaq on the Record Date. In addition, effective as of the Closing, with certain limited exceptions, the
lock-up
arrangements described in the Investor Rights Agreement will prevent the transfer or assignment of Class A Common Stock (or any securities convertible into or exercisable or exchangeable for shares of Class A Common Stock) in accordance with the terms thereof. These
lock-up
arrangements are further described in the section entitled “
Proposal 1: The Business Combination Agreement
Related Agreements
Investor Rights Agreement
.” Since the Sponsor and DYNS’s officers and directors have direct or indirect interests in DYNS Common Stock, DYNS’s officers and directors may have a conflict of interest in determining whether a particular target business (including Senti) is an appropriate business with which to effectuate our initial business combination.
 
   
DYNS’s officers and directors may have a conflict of interest with respect to evaluating a particular business combination if the retention or resignation of any such officers and directors was included by a target business as a condition to, or was the result of, any agreement with respect to the initial business combination, as is the case for the proposed Business Combination with Senti.
 
   
The Sponsor and DYNS’s officers or directors may have a conflict of interest with respect to evaluating a business combination and financing arrangements as DYNS may obtain loans from the Sponsor or an affiliate of the Sponsor or any of DYNS’s officers or directors to finance transaction costs in connection with an intended initial business combination. As of             , 2022, no such loans are outstanding.
 
   
The Sponsor and DYNS’s officers and directors may have incurred reimbursable expenses that may not be reimbursed or repaid if the Business Combination Proposal is not approved. Such interests may have influenced their decision to approve and, in the case of the Board, recommend, the Business Combination with Senti. As of the date of filing of this proxy statement/prospectus, no reimburseable expenses are outstanding.
 
   
The Sponsor, certain stockholders of DYNS, and certain stockholders of Senti will be party to the Investor Rights Agreement, which will come into effect at the Effective Time. See the section entitled “
Proposal 1: The Business Combination Agreement
Related Agreements
– Investor Rights Agreement”
for a summary of the key terms of this agreement.
Recommendation to DYNS Stockholders
After careful consideration, the Board determined unanimously that each of the Business Combination Proposal, the Charter Amendment Proposal, the Advisory Charter Amendment Proposals, the Nasdaq Stock Issuance Proposal, the Director Election Proposal, the Incentive Plan Proposal, the ESPP Proposal and the Adjournment Proposal, if presented, is fair to and in the best interests of DYNS and its stockholders. The Board has approved and declared advisable and unanimously recommends that you vote or give instructions to vote “FOR” each of these Proposals.
For a description of various factors considered by the Board in reaching its decision to recommend in favor of voting for each of the Proposals to be presented at the Special Meeting, see the sections herein regarding each of the Proposals. In particular, in respect of the Board’s unanimous determination that the Business Combination Proposal is fair to and in the best interests of DYNS and its stockholders, and its recommendation that DYNS stockholders vote or give instructions to vote “FOR” such Proposal, you should carefully review the substantive factors considered by DYNS’s management team and the Board in coming to such determination and in making such recommendation, as set forth in the section of this proxy statement/prospectus entitled
“Proposal 1: The Business Combination Proposal – The Board’s Reasons for Approval of the Business Combination.”
 
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Summary of Risk Factors
The following is a summary of the principal risks to which (i) Senti’s business, operations and financial performance and (ii) the Business Combination are subject. Each of these risks is more fully described in the individual risk factors set forth under “
Risk Factors
” in this proxy statement/prospectus. Unless the context otherwise requires, all references in this subsection to the “Company,” “we,” “us” or “our” refer to the business of Senti prior to the consummation of the Business Combination, which will be the business of the Combined Company following the consummation of the Business Combination.
Risks Related to the Business, Operations and Financial Performance of Senti
 
   
We are a preclinical stage biotechnology company with a history of losses. We expect to continue to incur significant losses for the foreseeable future and may never achieve or maintain profitability.
 
   
We will need substantial additional funds to advance development of product candidates and our gene circuit platform, and we cannot guarantee that we will have sufficient funds available in the future to develop and commercialize our current or potential future product candidates and technologies.
 
   
We have identified a material weakness in our internal control over financial reporting. If our remediation of the material weakness is not effective, or if we experience additional material weaknesses or otherwise fail to maintain an effective system of internal controls in the future, we may not be able to accurately report our financial condition or results of operations, which may adversely affect investor confidence in us and, as a result, the value of our common stock.
 
   
Our history of recurring losses and anticipated expenditures raises substantial doubt about our ability to continue as a going concern. Our ability to continue as a going concern requires that we obtain sufficient funding to finance our operations.
 
   
If any of our current or potential future product candidates is ever tested in humans, it may not demonstrate the safety, purity and potency, or efficacy, necessary to become approvable or commercially viable.
 
   
Our gene circuit platform technologies are based on novel technologies that are unproven and may not result in approvable or marketable products, which exposes us to unforeseen risks and makes it difficult for us to predict the time and cost of product development and potential for regulatory approval.
 
   
Although we intend to explore other therapeutic opportunities in addition to the product candidates we are currently pursuing, we may fail to identify viable new product candidates for clinical development, which could materially harm our business.
 
   
Clinical development includes a lengthy and expensive process with an uncertain outcome, and results of earlier studies and trials may not be predictive of future trial results.
 
   
We rely on third parties to conduct our preclinical studies, and plan to rely on third parties to conduct clinical trials, and those third parties may not perform satisfactorily. If third parties on which we intend to rely to conduct certain preclinical and clinical studies do not perform as contractually required, fail to satisfy regulatory or legal requirements or miss expected deadlines, our development program could be delayed or unsuccessful, and we may not be able to obtain regulatory approval for or commercialize our product candidates when expected, or at all.
 
   
We may not be able to maintain our existing strategic partnerships and collaboration arrangements or enter into new strategic partnerships and collaborations for the development, manufacture and commercialization of product candidates based on our platform technology on terms that are acceptable to us, or at all.
 
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The manufacturing of our product candidates is complex. We may encounter difficulties in production. If we encounter any such difficulties, our ability to supply our product candidates for clinical trials or, if approved, for commercial sale, could be delayed or halted entirely.
 
   
We face competition from companies that have developed or may develop product candidates for the treatment of the diseases that we may target, including companies developing novel therapies and platform technologies. If these companies develop platform technologies or product candidates more rapidly than we do, or if their platform technologies or product candidates are more effective or have fewer side effects, our ability to develop and successfully commercialize product candidates may be adversely affected.
 
   
Our future success depends on our ability to retain key employees, directors, consultants and advisors and to attract, retain and motivate qualified personnel.
 
   
We may experience difficulties in managing our growth and expanding our operations. We have limited experience in therapeutic development. As our current and potential future product candidates enter and advance through preclinical studies and any clinical trials, we will need to expand our development, regulatory and manufacturing capabilities or contract with other organizations to provide these capabilities for us.
 
   
Our business, operations and clinical development plans and timelines could be adversely affected by the ongoing COVID-19 pandemic, including business interruptions, staffing shortages and supply chain issues arising from the pandemic on the manufacturing, clinical trial and other business activities performed by us or by third parties with whom we may conduct business, including our anticipated contract manufacturers, contract research organizations (“CROs”), suppliers, shippers and others.
 
   
If we are unable to obtain or protect intellectual property rights related to our technology and current or future product candidates, or if our intellectual property rights are inadequate, our competitors could develop and commercialize products and technology similar or identical to ours, and we may not be able to compete effectively in our market or successfully commercialize any product candidates we may develop.
 
   
We may be unable to obtain U.S. or foreign regulatory approval and, as a result, be unable to commercialize our current or potential future product candidates.
 
   
Even if we are able to commercialize any product candidate, such product candidate may become subject to unfavorable pricing regulations or third-party coverage and reimbursement policies, which would harm our business.
 
   
We or the third parties upon whom we depend may be adversely affected by natural disasters, including earthquake, flood, fire, explosion, extreme weather conditions, or medical epidemics.
Risks Related to the Business Combination and Redemptions
 
   
DYNS will not have any right after the Closing to make damage claims against Senti or Senti’s stockholders for the breach of any representation, warranty or covenant made by Senti in the Business Combination Agreement.
 
   
Subsequent to the Closing, New Senti may be required to take write-downs or write-offs, restructuring and impairment or other charges that could have a significant negative effect on its financial condition, results of operations and stock price, which could cause you to lose some or all of your investment.
 
   
The Sponsor and DYNS’s officers and directors own DYNS Common Stock that will be worthless and may incur reimbursable expenses that may not be reimbursed or repaid if the Business Combination is not approved. Such interests may have influenced their decision to approve and, in the case of the Board, recommend, the Business Combination with Senti.
 
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The exercise of DYNS’s directors’ and officers’ discretion in agreeing to changes or waivers in the terms of the Business Combination Agreement may result in a conflict of interest when determining whether such changes to the terms of the Business Combination or waivers of conditions are appropriate and in the best interests of DYNS’s stockholders.
 
   
If DYNS is unable to complete the Business Combination with Senti or another business combination by May 28, 2023 (or such later date as may be approved by DYNS’s stockholders), DYNS will cease all operations except for the purpose of winding up, redeeming 100% of the outstanding Public Shares for cash and, subject to the approval of its remaining stockholders and its Board, dissolving and liquidating. In such event, third parties may bring claims against DYNS and, as a result, the proceeds held in the Trust Account could be reduced and the per-share liquidation price received by stockholders could be less than $10.00 per Public Share.
 
   
Neither the Board nor any committee thereof obtained a third-party financial opinion in determining whether or not to pursue the Business Combination.
 
   
There is no guarantee that a Public Stockholder’s decision to continue to hold shares of Class A Common Stock following the Business Combination will put the stockholder in a better future economic position than if they decided to redeem their Public Shares for a pro rata portion of the Trust Account, and vice versa.
 
   
The consummation of the Business Combination is conditioned on, among other things, there being at least $150,000,000 in cash available at Closing. DYNS has entered into Non-Redemption Agreements with the Anchor Investors to assist with satisfying this condition, however, the Anchor Investors’ commitments not to redeem or to transfer their shares of Class A Common Stock do not apply in circumstances where they are compelled to do so in connection with non-discretionary exchange-traded fund (“ETF”) or mutual fund pro rata rebalancing transfers. Despite the Non-Redemption Agreements, there is no guarantee that there will be $150,000,000 in cash available at Closing. As this condition is for Senti’s benefit, it is possible that Senti could waive it prior to Closing, although there is no guarantee that it would. If Senti did waive the condition in these circumstances, it is possible that New Senti would have insufficient capital to conduct and grow its business after Closing in the manner described in this proxy statement/prospectus.
 
   
The listing of New Senti’s securities on Nasdaq will not benefit from the process undertaken in connection with an underwritten initial public offering.
Legal proceedings in connection with the Business Combination
On March 8, 2022, in connection with the proposed Business Combination, a purported shareholder of DYNS sent a demand letter to DYNS’s and Senti’s counsel, alleging that the registration statement on Form S-4 filed with the SEC by DYNS on February 14, 2022 omitted material information with respect to the proposed Business Combination, and demanding that DYNS and the Board immediately make certain supplemental corrective disclosures to address the alleged deficiencies. DYNS believes that the claims described in the demand letter are without merit.
Comparison of Governance and Stockholders’ Rights
Following the Closing, the rights of DYNS stockholders who remain New Senti stockholders will no longer be governed by the Current Charter and DYNS’s duly adopted bylaws and will instead be governed by the Proposed Charter and the new bylaws (as amended from time to time) adopted in connection with the Charter Amendment Proposal. See “
Comparison of Governance and Stockholders’ Rights
” beginning on page 331.
 
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SELECTED HISTORICAL FINANCIAL INFORMATION
DYNS is providing the following selected historical financial information to assist you in your analysis of the financial aspects of the Business Combination.
DYNS’s selected historical financial information is derived from DYNS’s audited financial statements included elsewhere in this proxy statement/prospectus for the period from March 1, 2021 (inception) through December 31, 2021.
Senti’s consolidated balance sheet data as of December 31, 2021 and December 31, 2020, and consolidated statement of operations and comprehensive loss data for the fiscal years ended December 31, 2021 and December 31, 2020 are derived from Senti’s audited consolidated financial statements, included elsewhere in this proxy statement/prospectus.
The financial data set forth below should be read in conjunction with, and is qualified by reference to, the text of the sections entitled “
Information about DYNS – DYNS Management’s Discussion and Analysis of Financial
Condition and Results of Operations
” and “
Information about Senti – Senti Management’s Discussion and Analysis of Financial Condition and Results of Operations”
and the financial statements and notes thereto included elsewhere in this proxy statement/prospectus. DYNS’s and Senti’s financial statements are prepared and presented in accordance with U.S. GAAP. The historical results included below and elsewhere in this proxy statement/prospectus are not indicative of future performance of DYNS or Senti.
Selected Historical Financial Information: DYNS
 
    
As of

December 31, 2021
 
Balance Sheet Data:
        
Cash
   $ 889,323  
Investments held in trust account
   $ 230,008,784  
Total assets
   $ 231,456,663  
Total liabilities
   $ 10,332,181  
Class A common stock subject to possible redemption
1
   $ 230,000,000  
Total stockholders’ deficit
   $ (8,875,518
 
 
1
 
Does not reflect the effect of the Non-Redemption Agreements on potential redemptions from our Trust Account.
 
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For the Period
From March 1,
2021 (Inception)
Through
December 31,
2021
 
Statements of Operations Data:
        
Loss from operations
   $ (3,865,872
Interest and dividend income on investments held in trust account
     8,784  
    
 
 
 
Net loss
   $ (3,857,088
Basic and diluted weighted average shares outstanding, Class A common stock
     16,872,995  
    
 
 
 
Basic and diluted net loss per share, Class A common stock
   $ (0.17
    
 
 
 
Basic and diluted weighted average shares outstanding, Class B common stock
     5,418,853  
    
 
 
 
Basic and diluted net loss per share, Class B common stock
   $ (0.17
    
 
 
 
 
    
For the Period
From March 1,
2021 (Inception)
Through
December 31,
2021
 
Statement of Cash Flows Data:
        
Net cash used in operating activities
   $ (1,142,247
Net cash used in investing activities
   $ (230,000,000
Net cash provided by financing activities
   $ 232,031,570  
 
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Selected Historical Financial Information: Senti
 
    
Year Ended

December 31,
 
    
2021
   
2020
 
    
(in thousands, except share and
per share data)
 
Consolidated Statement of Operations and Comprehensive Loss Data:
                
Revenue:
                
Contract revenue
   $ 2,291     $ 394  
Grant income
     470       172  
    
 
 
   
 
 
 
Total revenue
     2,761       566  
    
 
 
   
 
 
 
     
Operating expenses:
                
Research and development
     21,957       15,956  
General and administrative
     21,250       9,304  
    
 
 
   
 
 
 
Total operating expenses
     43,207       25,260  
    
 
 
   
 
 
 
Loss from operations
     (40,446     (24,694
     
Other income (expense):
                
Interest income, net
     11       88  
Change in fair value of convertible notes
           (720
Change in preferred stock tranche liability
     (14,742     5,748  
Loss on impairment of fixed assets
     (22     (238
Other expense
     (120     (46
    
 
 
   
 
 
 
Total other income (expense), net
     (14,873     4,832  
    
 
 
   
 
 
 
Net loss
   $ (55,319   $ (19,862
    
 
 
   
 
 
 
Other comprehensive gain (loss):
                
Unrealized gain (loss) on investments
           (13
Comprehensive loss
   $ (55,319   $ (19,875
    
 
 
   
 
 
 
Net loss per share, basic and diluted
   $ (3.72   $ (1.43
    
 
 
   
 
 
 
Weighted average shares outstanding, basic and diluted
     14,881,325       13,862,582  
    
 
 
   
 
 
 
 
    
December 31,
2021
    
December 31,
2020
 
Consolidated Balance Sheet Data:
                 
Cash and cash equivalents
   $ 56,034      $ 30,537  
Working capital
     45,650        26,843  
Total assets
     96,702        48,345  
Total liabilities
     36,326        17,396  
Redeemable convertible preferred stock
     171,833        89,662  
Total stockholders’ deficit
     (111,457      (58,713
 
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SELECTED UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION
The following selected unaudited pro forma condensed combined financial data is derived from the unaudited pro forma condensed combined balance sheet and unaudited pro forma condensed combined statements of operations included elsewhere in this proxy statement/prospectus and is provided to aid you in your analysis of the financial aspects of the Business Combination, Non-Redemption Agreement and the consummation of the PIPE Investment, which are collectively referred to as the “Transactions.”
The unaudited pro forma condensed combined financial statements are based on the DYNS historical financial statements and the Senti historical consolidated financial statements as adjusted to give effect to the Transactions. The unaudited pro forma condensed combined balance sheet gives pro forma effect to the Transactions as if they had been consummated on December 31, 2021. The unaudited pro forma condensed combined statement of operations for the year ended December 31, 2021 gives effect to the Transactions as if they had occurred on January 1, 2021.
The unaudited pro forma condensed combined financial statements were prepared in accordance with Article 11 of SEC
Regulation S-X,
as amended by the final rule, Release
No. 33-10786,
Amendments to Financial Disclosures
about Acquired
and Disposed
Businesse
s
. Release
No. 33-10786
replaced the previous pro forma adjustment criteria with simplified requirements to depict the accounting for the Transactions (“Transaction Accounting Adjustments”) and present the reasonably estimable synergies and other transaction effects that have occurred or are reasonably expected to occur (“Management’s Adjustments”). Management has elected not to present Management’s Adjustments and will only be presenting Transaction Accounting Adjustments in the unaudited pro forma condensed combined financial information. The adjustments presented in the unaudited pro forma condensed combined financial statements have been identified and presented to provide relevant information necessary for an understanding of the combined company reflecting the Transactions.
The unaudited pro forma condensed combined financial statements are provided for illustrative purposes only and are not necessarily indicative of what the actual results of operations and financial position would have been had the Transactions taken place on the dates indicated, nor are they indicative of the future consolidated results of operations or financial position of the combined company.
The unaudited pro forma condensed combined financial statements have been derived from and should be read in conjunction with:
 
   
the accompanying notes to the unaudited pro forma condensed combined financial statements included elsewhere in this proxy statement/prospectus;
 
   
the historical audited financial statements of DYNS as of December 31, 2021 and for the period from March 1, 2021 (inception) through December 31, 2021 and the related notes included elsewhere in this proxy statement/prospectus;
 
   
the historical audited consolidated financial statements of Senti as of and for the year ended December 31, 2021 and the related notes included elsewhere in this proxy statement/prospectus; and
 
   
the sections entitled “
DYNS Management’s
Discussion
and Analysis
of Financial
Condition
and Results
of Operations
,
” “
Senti
Management’s
Discussion
and Analysis
of Financial
Condition
and Results
of Operation
s
,” and other financial information relating to DYNS and Senti included elsewhere in this proxy statement/prospectus.
 
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The selected unaudited pro forma condensed combined financial data below presents two redemption scenarios as follows:
 
   
Assuming No Redemptions
(Scenario
1)
: This presentation assumes that no Public Stockholders exercise their right to redeem their Public Shares for their pro rata share of the Trust Account, and thus, the full amount held in the Trust Account as of the Closing is available for the Business Combination; and
 
   
Assuming Maximum Redemptions (Scenario 2):
This presentation assumes that 14,890,663 Public Shares are redeemed, resulting in an aggregate cash payment of approximately $148.9 million out of the Trust Account based on an assumed redemption price of $10.00 per share. This redemption figure is derived by subtracting the 8,109,337 shares that will not be redeemed by Anchor Investors (due to Non-Redemption Agreements) from the 23,000,000 Public Shares issued and outstanding as at the Record Date. After a redemption of approximately $148.9 million out of the $230.0 million Trust Account, and the $66.8 million PIPE Investment, the available cash at Closing would be approximately $147.9 million, which would be just under the condition in the Business Combination Agreement that there be at least $150.0 million in available Closing cash. As this condition is for Senti’s benefit, this Scenario assumes Senti will waive it prior to Closing, however there is no guarantee that it would and, if it did not, the Business Combination would not be consummated. When considering this maximum redemptions scenario, you should consider that the Anchor Investors’ commitments under the Non-Redemption Agreements not to redeem or to transfer their shares of Class A Common Stock do not apply in circumstances where they are compelled to do so in connection with non-discretionary ETF or mutual fund pro rata rebalancing transfers. If one or more Anchor Investors was compelled to transfer shares of Class A Common Stock for this reason, it is possible that more than 14,890,663 Public Shares could be redeemed and that there may be less than approximately $147.9 million in cash available at Closing. The redemption of more than 14,890,663 Public Shares would change some of the figures presented in the maximum redemption scenario in the unaudited pro forma financial data.
 
    
Unaudited Pro Forma
 
    
Year Ended December 31, 2021
 
    
Scenario 1
(Assuming No
Redemptions)
    
Scenario 2
(Assuming
Maximum
Redemptions)
 
    
(in thousands)
 
Combined Statement of Operations data:
                 
Revenue
   $ 2,761      $ 2,761  
Loss from operations
   $ (81,292    $ (74,964
Net loss
   $ (91,080    $ (84,752
Basic and diluted net loss per share, Class A common stock
   $ (1.55    $ (1.94
Basic and diluted weighted average shares outstanding, Class A common stock
     58,590,086        43,699,423  
   
    
Unaudited Pro Forma
 
    
As of December 31, 2021
 
    
Scenario 1
(Assuming No
Redemptions)
    
Scenario 2
(Assuming
Maximum
Redemptions)
 
    
(in thousands)
 
Combined Balance Sheet data:
                 
Total assets
   $ 370,984      $ 222,077  
Total liabilities
   $ 34,897      $ 34,897  
Total stockholders’ equity
   $ 336,087      $ 187,180  
 
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FORWARD-LOOKING STATEMENTS
This proxy statement/prospectus contains statements that are forward-looking and as such are not historical facts. This includes, without limitation, statements regarding the financial position, business strategy and the plans and objectives of management for future operations, including as they relate to the potential Business Combination. These statements constitute projections, forecasts and forward-looking statements, and are not guarantees of performance. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. When used in this proxy statement/prospectus, words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “strive,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. When DYNS discusses its strategies or plans, including as they relate to the potential Business Combination, it is making projections, forecasts or forward-looking statements. Such statements are based on the beliefs of, as well as assumptions made by and information currently available to, DYNS’s management.
Forward-looking statements in this proxy statement/prospectus may include, for example, statements about:
 
   
DYNS’s ability to complete the Business Combination or, if DYNS does not consummate such Business Combination, any other initial business combination;
 
   
satisfaction or waiver (if applicable) of the conditions to the Business Combination Agreement;
 
   
the occurrence of any other event, change or other circumstances that could give rise to the termination of the Business Combination Agreement;
 
   
the projected financial information, anticipated growth rate, and market opportunities of the Combined Company;
 
   
the ability to obtain or maintain the listing of New Senti common stock on Nasdaq following the Business Combination;
 
   
New Senti’s public securities’ potential liquidity and trading;
 
   
New Senti’s ability to raise financing in the future;
 
   
New Senti’s success in retaining or recruiting, or changes required in, officers, key employees or directors following the completion of the Business Combination;
 
   
DYNS’s officers and directors allocating their time to other businesses and potentially having conflicts of interest with DYNS’s business or in approving the Business Combination;
 
   
the use of proceeds not held in the Trust Account or available to DYNS from interest income on the Trust Account balance; or
 
   
factors relating to the business, operations and financial performance of Senti, including:
 
   
the initiation, cost, timing, progress and results of research and development activities, preclinical studies or clinical trials with respect to Senti’s current and potential future product candidates;
 
   
Senti’s ability to develop and advance its gene circuit platform technologies;
 
   
Senti’s ability to identify product candidates using its gene circuit platform technologies;
 
   
Senti’s ability to identify, develop and commercialize product candidates;
 
   
Senti’s ability to advance its current and potential future product candidates into, and successfully complete, preclinical studies and clinical trials;
 
   
Senti’s ability to obtain and maintain regulatory approval of its current and potential future product candidates, and any related restrictions, limitations and/or warnings in the label of an approved product candidate;
 
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Senti’s ability to obtain funding for its operations;
 
   
Senti’s ability to obtain and maintain intellectual property protection for its technologies and any of its product candidates;
 
   
Senti’s ability to successfully commercialize its current and any potential future product candidates;
 
   
the rate and degree of market acceptance of Senti’s current and any potential future product candidates;
 
   
regulatory developments in the United States and international jurisdictions;
 
   
potential liability lawsuits and penalties related to Senti’s technologies, product candidates and current and future relationships with third parties;
 
   
Senti’s ability to attract and retain key scientific and management personnel;
 
   
Senti’s ability to effectively manage the growth of its operations;
 
   
Senti’s ability to contract with third-party suppliers and manufacturers and their ability to perform adequately under those arrangements;
 
   
Senti’s ability to compete effectively with existing competitors and new market entrants;
 
   
potential effects of extensive government regulation;
 
   
Senti’s future financial performance and capital requirements;
 
   
Senti’s ability to implement and maintain effective internal controls;
 
   
the impact of supply chain disruptions; and
 
   
the impact of the COVID-19 pandemic on Senti’s business, including its preclinical studies and potential future clinical trials.
DYNS cautions you that the foregoing list may not contain all of the forward-looking statements made in this proxy statement/prospectus.
These forward-looking statements are only predictions based on the current expectations and projections of DYNS and Senti about future events and are subject to a number of risks, uncertainties and assumptions, including those described in “
Risk Factors
” and elsewhere in this proxy statement/prospectus. Moreover, Senti operates in a competitive industry, and new risks emerge from time to time. It is not possible for the management of DYNS or Senti to predict all risks, nor can DYNS or Senti assess the impact of all factors on their respective businesses or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements DYNS may make in this proxy statement/prospectus. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this proxy statement/prospectus may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements in this proxy statement/prospectus.
The forward-looking statements included in this proxy statement/prospectus are made only as of the date hereof. You should not rely upon forward-looking statements as predictions of future events. Although DYNS believes that the expectations reflected in its forward-looking statements are reasonable, neither DYNS nor Senti can guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. Neither DYNS nor Senti undertakes any obligation to update publicly any forward-looking statements for any reason after the date of this proxy statement/prospectus to conform these statements to actual results or to changes in expectations, except as required by law.
You should read this proxy statement/prospectus and the documents that have been filed as Annexes and exhibits hereto with the understanding that the actual future results, levels of activity, performance, events and circumstances of DYNS and Senti may be materially different from what is expected.
 
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RISK FACTORS
Stockholders should consider and read carefully all of the risks and uncertainties described below, as well as other information included in this proxy statement/prospectus, before they decide whether to vote or instruct their vote to be cast to approve the Proposals described in this proxy statement/prospectus. The value of your investment in New Senti following consummation of the Business Combination will be subject to the significant risks affecting New Senti and inherent to the industry in which it operates. If any of the events described below occur, the post-acquisition business and financial results could be adversely affected in a material way. This could cause the trading price of the Combined Company’s common stock to decline, perhaps significantly, and you therefore may lose all or part of your investment. Unless the context otherwise requires, all references in this subsection to the “Company,” “we,” “us” or “our” refer to the business of Senti prior to the consummation of the Business Combination, which will be the business of the Combined Company following the consummation of the Business Combination.
Summary of Risk Factors
The following is a summary of principal risk to which (i) our business, operations and financial performance and (ii) the Business Combination and redemptions are subject. Each of these risks is more fully described in the individual risk factors immediately following this summary:
Risks Related to the Business, Operations and Financial Performance of Senti
 
   
We are a preclinical stage biotechnology company with a history of losses. We expect to continue to incur significant losses for the foreseeable future and may never achieve or maintain profitability.
 
   
We will need substantial additional funds to advance development of our product candidates and our gene circuit platform, and we cannot guarantee that we will have sufficient funds available in the future to develop and commercialize our current or potential future product candidates and technologies.
 
   
We have identified a material weakness in our internal control over financial reporting. If our remediation of the material weakness is not effective, or if we experience additional material weaknesses or otherwise fail to maintain an effective system of internal controls in the future, we may not be able to accurately report our financial condition or results of operations, which may adversely affect the value of our common stock.
 
   
Our history of recurring losses and anticipated expenditures raises substantial doubt about our ability to continue as a going concern. Our ability to continue as a going concern requires that we obtain sufficient funding to finance our operations.
 
   
Our current product candidates are in preclinical development and have never been tested in humans. One or all of our current product candidates may fail in clinical development or suffer delays that materially and adversely affect their commercial viability.
 
   
If any of our current or potential future product candidates is ever tested in humans, it may not demonstrate the safety, purity and potency, or efficacy, necessary to become approvable or commercially viable.
 
   
Our gene circuit platform technologies are based on novel technologies that are unproven and may not result in approvable or marketable products, which exposes us to unforeseen risks and makes it difficult for us to predict the time and cost of product development and potential for regulatory approval.
 
   
Although we intend to explore other therapeutic opportunities in addition to the product candidates we are currently pursuing, we may fail to identify viable new product candidates for clinical development, which could materially harm our business.
 
   
Clinical development includes a lengthy and expensive process with an uncertain outcome, and results of earlier studies and trials may not be predictive of future trial results.
 
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We rely on third parties to conduct our preclinical studies, and plan to rely on third parties to conduct clinical trials, and those third parties may not perform satisfactorily. If third parties on which we intend to rely to conduct certain preclinical and clinical studies do not perform as contractually required, fail to satisfy regulatory or legal requirements or miss expected deadlines, our development program could be delayed or unsuccessful, and we may not be able to obtain regulatory approval for or commercialize our product candidates when expected, or at all.
 
   
We may not be able to maintain our existing strategic partnerships and collaboration arrangements or enter into new strategic partnerships and collaborations for the development, manufacture and commercialization of product candidates based on our platform technology on terms that are acceptable to us, or at all.
 
   
The manufacturing of our product candidates is complex. We may encounter difficulties in production. If we encounter any such difficulties, our ability to supply our product candidates for clinical trials or, if approved, for commercial sale, could be delayed or halted entirely.
 
   
We face competition from companies that have developed or may develop product candidates for the treatment of the diseases that we may target, including companies developing novel therapies and platform technologies. If these companies develop platform technologies or product candidates more rapidly than we do, or if their platform technologies or product candidates are more effective or have fewer side effects, our ability to develop and successfully commercialize product candidates may be adversely affected.
 
   
Our future success depends on our ability to retain key employees, directors, consultants and advisors and to attract, retain and motivate qualified personnel.
 
   
We may experience difficulties in managing our growth and expanding our operations. We have limited experience in therapeutic development. As our current and potential future product candidates enter and advance through preclinical studies and any clinical trials, we will need to expand our development, regulatory and manufacturing capabilities or contract with other organizations to provide these capabilities for us.
 
   
Our business, operations and clinical development plans and timelines could be adversely affected by the ongoing
COVID-19 pandemic,
including business interruptions, staffing shortages and supply chain issues arising from the pandemic, on the manufacturing, clinical trial and other business activities performed by us or by third parties with whom we may conduct business, including our anticipated contract manufacturers, contract research organizations (CROs), suppliers, shippers and others.
 
   
If we are unable to obtain or protect intellectual property rights related to our technology and current or future product candidates, or if our intellectual property rights are inadequate, our competitors could develop and commercialize products and technology similar or identical to ours, and we may not be able to compete effectively in our market or successfully commercialize any product candidates we may develop.
 
   
We may be unable to obtain U.S. or foreign regulatory approval and, as a result, be unable to commercialize our current or potential future product candidates.
 
   
Even if we are able to commercialize any product candidate, such product candidate may become subject to unfavorable pricing regulations or third-party coverage and reimbursement policies, which would harm our business.
 
   
We or the third parties upon whom we depend may be adversely affected by other natural disasters, including earthquake, flood, fire, explosion, extreme weather conditions, or medical epidemics.
Risks Related to the Business Combination and Redemptions
 
   
DYNS will not have any right after the Closing to make damage claims against Senti or Senti’s stockholders for the breach of any representation, warranty or covenant made by Senti in the Business Combination Agreement.
 
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Subsequent to the Closing, New Senti may be required to take write-downs or write-offs, restructuring and impairment or other charges that could have a significant negative effect on its financial condition, results of operations and stock price, which could cause you to lose some or all of your investment.
 
   
The Sponsor and DYNS’s officers and directors own DYNS Common Stock that will be worthless and may incur reimbursable expenses that may not be reimbursed or repaid if the Business Combination is not approved. Such interests may have influenced their decision to approve and, in the case of the Board, recommend, the Business Combination with Senti.
 
   
The exercise of DYNS’s directors’ and officers’ discretion in agreeing to changes or waivers in the terms of the Business Combination Agreement may result in a conflict of interest when determining whether such changes to the terms of the Business Combination Agreement or waivers of conditions are appropriate and in the best interests of DYNS’s stockholders.
 
   
If DYNS is unable to complete the Business Combination with Senti or another business combination by May 28, 2023 (or such later date as may be approved by DYNS’s stockholders), DYNS will cease all operations except for the purpose of winding up, redeeming 100% of the outstanding Public Shares for cash and, subject to the approval of its remaining stockholders and its Board, dissolving and liquidating. In such event, third parties may bring claims against DYNS and, as a result, the proceeds held in the Trust Account could be reduced and the
per-share
liquidation price received by stockholders could be less than $10.00 per Public Share.
 
   
Neither the Board nor any committee thereof obtained a third-party financial opinion in determining whether or not to pursue the Business Combination.
 
   
There is no guarantee that a Public Stockholder’s decision whether to continue to hold shares of Class A Common Stock following the Business Combination will put the stockholder in a better future economic position than if they decided to redeem their Public Shares for a pro rata portion of the Trust Account, and vice versa.
 
   
The consummation of the Business Combination is conditioned on, among other things, there being at least $150,000,000 in cash available at Closing. DYNS has entered into Non-Redemption Agreements with the Anchor Investors to assist with satisfying this condition, however, the Anchor Investors’ commitments not to redeem or to transfer their shares of Class A Common Stock do not apply in circumstances where they are compelled to do so in connection with non-discretionary ETF or mutual fund pro rata rebalancing transfers. Despite the Non-Redemption Agreements, there is not guarantee that there will be $150,000,000 in cash available at Closing. As this condition is for Senti’s benefit, it is possible that Senti could waive it prior to Closing, although there is no guarantee that it would. If Senti did waive the condition in these circumstances, it is possible that New Senti would have insufficient capital to conduct and grow its business after Closing in the manner described in this proxy statement/prospectus.
 
   
The listing of New Senti’s securities on Nasdaq will not benefit from the process undertaken in connection with an underwritten initial public offering.
Risks Related to Senti’s Limited Operating History and Financial Condition
We are a preclinical stage biotechnology company with a history of losses. We expect to continue to incur significant losses for the foreseeable future and may never achieve or maintain profitability.
We are a preclinical stage biotechnology company with a history of losses. Since our inception, we have devoted substantially all of our resources to research and development, preclinical studies, building our management team and building our intellectual property portfolio, and we have incurred significant operating losses. Our net losses were $55.3 million and $19.9 million for the years ended December 31, 2021 and 2020, respectively. As of December 31, 2021, we had an accumulated deficit of $115.1 million. Substantially all of our losses have resulted from expenses incurred in connection with our research and development programs and from general and administrative costs associated with our operations. To date, we have not generated any revenue from product sales, and we have not sought or obtained regulatory approval for any product candidate. Furthermore, we do not expect to generate any revenue from product sales for the foreseeable future, and we expect to continue to
 
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incur significant operating losses for the foreseeable future due to the cost of research and development, preclinical studies, clinical trials, manufacturing and the regulatory approval process for our current and potential future product candidates.
We expect our net losses to increase substantially as we:
 
   
continue to advance our gene circuit platform technologies;
 
   
continue preclinical development of our current and future product candidates and initiate additional preclinical studies;
 
   
commence clinical trials of our current and future product candidates;
 
   
establish our manufacturing capability, including developing our contract development and manufacturing organization relationships and building our internal manufacturing facilities;
 
   
acquire and license technologies aligned with our gene circuit platform technologies;
 
   
seek regulatory approval of our current and future product candidates;
 
   
expand our operational, financial, and management systems and increase personnel, including personnel to support our preclinical and clinical development, manufacturing and commercialization efforts;
 
   
continue to develop, perfect, and defend our intellectual property portfolio; and
 
   
incur additional legal, accounting, or other expenses in operating our business, including the additional costs associated with operating as a public company.
However, the amount of our future losses is uncertain. Our ability to achieve or sustain profitability, if ever, will depend on, among other things, successfully developing product candidates, obtaining regulatory approvals to market and commercialize product candidates, manufacturing any approved products on commercially reasonable terms, entering into potential future alliances, establishing a sales and marketing organization or suitable third-party alternatives for any approved product and raising sufficient funds to finance business activities. If we, or our potential future collaborators, are unable to commercialize one or more of our product candidates, or if sales revenue from any product candidate that receives approval is insufficient, we will not achieve or sustain profitability, which could have a material adverse effect on our business, financial condition, results of operations and prospects.
Even if we consummate the Business Combination, we will need substantial additional funds to advance development of product candidates and our gene circuit platform, and we cannot guarantee that we will have sufficient funds available in the future to develop and commercialize our current or potential future product candidates and technologies.
The development of biotechnology product candidates is capital-intensive. If any of our current or potential future product candidates enter and advance through preclinical studies and clinical trials, we will need substantial additional funds to expand our development, regulatory, manufacturing, marketing and sales capabilities. We have used substantial funds to develop our gene circuit platform,
SENTI-202,
SENTI-301,
SENTI-401
and other product candidates, and we will require significant funds to continue to develop our platform and conduct further research and development, including preclinical studies and clinical trials. In addition, upon the closing of the Business Combination, we expect to incur significant additional costs associated with operating as a public company.
As of December 31, 2021, we had $56.0 million in cash and cash equivalents. Our future capital requirements and the period for which we expect our existing resources to support our operations may vary significantly from what we expect. Our monthly spending levels vary based on new and ongoing research and development and other corporate activities. Because the length of time and activities associated with successful
 
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research and development of platform technologies and product candidates is highly uncertain, we are unable to estimate the actual funds we will require for development and any approved marketing and commercialization activities. The timing and amount of our operating expenditures will depend largely on:
 
   
the timing and progress of preclinical and clinical development of our current and potential future product candidates;
 
   
the timing and progress of our development of our gene circuit platforms;
 
   
the number and scope of preclinical and clinical programs we decide to pursue;
 
   
the costs of building and operating our own dedicated Current Good Manufacturing Practice, or cGMP, and Current Good Tissue Practice, or cGTP facility to support clinical and commercial-scale production of multiple allogeneic NK cell product candidates, and the terms of any third-party manufacturing contract or biomanufacturing partnership we may enter into;
 
   
our ability to maintain our current licenses and collaborations, conduct our research and development programs and establish new strategic partnerships and collaborations;
 
   
the progress of the development efforts of our existing strategic partners and third parties with whom we may in the future enter into collaboration and research and development agreements;
 
   
the costs involved in obtaining, maintaining, enforcing and defending patents and other intellectual property rights;
 
   
the impact of the
COVID-19
pandemic on our business;
 
   
the cost and timing of regulatory approvals; and
 
   
our efforts to enhance operational systems and hire additional personnel, including personnel to support development of our product candidates and satisfy our obligations as a public company.
To date, we have primarily financed our operations through the sale of equity securities. We may seek to raise any necessary additional capital through a combination of public or private equity offerings, debt financings, collaborations, strategic alliances, licensing arrangements, grants and other marketing and distribution arrangements. We cannot assure you that we will be successful in acquiring additional funding at levels sufficient to fund our operations or on terms favorable to us. If we are unable to obtain adequate financing when needed, we may have to delay, reduce the scope of or suspend one or more of our preclinical studies, clinical trials, research and development programs or commercialization efforts. Because of the numerous risks and uncertainties associated with the development and commercialization of our current and potential future product candidates and the extent to which we may enter into collaborations with third parties to participate in their development and commercialization, we are unable to estimate the amounts of increased capital outlays and operating expenditures associated with our current and anticipated preclinical studies and clinical trials, including related manufacturing costs. To the extent that we raise additional capital through collaborations, strategic alliances or licensing arrangements with third parties, we may have to relinquish valuable rights to our current and potential future product candidates, future revenue streams or research programs or to grant licenses on terms that may not be favorable to us. If we do raise additional capital through public or private equity or convertible debt offerings, the ownership interest of our existing stockholders will be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect our stockholders’ rights. If we raise additional capital through debt financing, we may be subject to covenants limiting or restricting our ability to take specific actions, such as incurring additional debt, making capital expenditures or declaring dividends.
We do not expect to realize revenue from product sales or royalties from licensed products for the foreseeable future, if at all, and unless and until our current and potential future product candidates are clinically tested, approved for commercialization and successfully marketed.
 
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We have identified a material weakness in our internal control over financial reporting. If our remediation of the material weakness is not effective, or if we experience additional material weaknesses in the future or otherwise fail to maintain an effective system of internal controls in the future, we may not be able to accurately report our financial condition or results of operations, which may adversely affect investor confidence in us and, as a result, the value of our common stock.
Prior to the closing of the Business Combination, we have been a private company with limited accounting personnel and other resources with which to address our internal control over financial reporting. In connection with our preparation and the audit of our consolidated financial statements as of and for the year ended December 31, 2020, we and our independent registered public accounting firm identified a material weakness as defined under the Securities Exchange Act of 1934, as amended, or the Exchange Act, and by the Public Company Accounting Oversight Board (United States) in our internal control over financial reporting. The material weakness related to a lack of sufficient and adequate resources in the finance and accounting function that resulted in a lack of formalized risk assessment process, lack of segregation of duties, and ineffective process level control activities over the management review of journal entries, account reconciliations and
non-routine
transactions. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of our consolidated financial statements will not be prevented or detected on a timely basis.
We are in the process of implementing a risk assessment process and measures designed to improve our internal control over financial reporting and remediate the control deficiencies that led to the material weakness, including hiring additional accounting personnel. The process of designing and implementing effective internal controls is a continuous effort that requires us to anticipate and react to changes in our business and the economic and regulatory environments and to expend significant resources to maintain a system of internal controls that is adequate to satisfy our reporting obligations as a public company. For example, to maintain and improve the effectiveness of our financial reporting, we will need to commit significant resources, implement and strengthen existing disclosure processes, train personnel and provide additional management oversight.
We cannot be certain that the measures we have taken to date, and actions we may take in the future, will be sufficient to remediate the control deficiencies that led to our material weakness in our internal control over financial reporting or that they will prevent or avoid potential future material weaknesses. In addition, neither our management nor an independent registered public accounting firm has performed an evaluation of our internal control over financial reporting because no such evaluation has been previously required. The rules governing the standards that must be met for our management to assess our internal control over financial reporting are complex and require significant documentation, testing and remediation. Testing internal controls may divert our management’s attention from other matters that are important to our business.
Pursuant to Section 404 of the Sarbanes-Oxley Act, or Section 404, our management will be required to report upon the effectiveness of our internal control over financial reporting beginning with the annual report for our fiscal year ending December 31, 2022. Even if our management concludes that our internal control over financial reporting is effective, our independent registered public accounting firm may issue a report that is qualified if it is not satisfied with our controls or the level at which our controls are documented, designed, operated or reviewed. The rules governing the standards that must be met for management to assess our internal control over financial reporting are complex and require significant documentation, testing, and possible remediation. To comply with the requirements of being a reporting company under the Exchange Act, we will need to implement additional financial and management controls, reporting systems, procedures, and hire additional accounting and finance staff.
When we lose our status as an “emerging growth company” and become an “accelerated filer” or a “large accelerated filer,” our independent registered public accounting firm will be required to attest to the effectiveness of our internal control over financial reporting pursuant to Section 404. Accordingly, you may not be able to depend on any attestation concerning our internal control over financial reporting from our independent registered public accountants for the foreseeable future.
 
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Our testing, or the subsequent testing by our independent registered public accounting firm, may reveal deficiencies in our internal controls over financial reporting that are deemed to be material weaknesses. A material weakness in internal controls could result in our failure to detect a material misstatement of our annual or quarterly consolidated financial statements or disclosures. We may not be able to conclude on an ongoing basis that we have effective internal controls over financial reporting in accordance with Section 404. If we are unable to conclude that we have effective internal controls over financial reporting, investors could lose confidence in our reported financial information, which could have a material adverse effect on the trading price of our common stock.
We cannot be certain as to the timing of completion of our evaluation, testing and any remediation actions or the impact of the same on our operations. If we are unable to successfully remediate our existing or any future material weaknesses in our internal control over financial reporting, or identify any additional material weaknesses, the accuracy and timing of our financial reporting may be negatively impacted, we may be unable to maintain compliance with securities law requirements regarding timely filing of periodic reports in addition to applicable stock exchange listing requirements, investors may lose confidence in our financial reporting and our stock price may decline as a result. If we are not able to implement the requirements of Section 404 in a timely manner or with adequate compliance, our independent registered public accounting firm may issue an adverse opinion due to ineffective internal controls over financial reporting, and we may be subject to sanctions or investigation by regulatory authorities, such as the SEC. As a result, there could be a negative reaction in the financial markets due to a loss of confidence in the reliability of our consolidated financial statements. In addition, we may be required to incur costs in improving our internal control system and the hiring of additional personnel. Any such action could negatively affect our results of operations and cash flows.
Members of our management team have limited experience in managing the
day-to-day
operations of a public company and, as a result, we may incur additional expenses associated with the management of our company.
Members of our management team have limited experience in managing the
day-to-day
operations of a public company. As a result, we may need to obtain outside assistance from legal, accounting, investor relations, or other professionals that could be more costly than planned. We also plan to hire additional personnel to comply with additional SEC reporting requirements. These compliance costs will make some activities significantly more time-consuming and costly. If we lack cash resources to cover these costs in the future, our failure to comply with reporting requirements and other provisions of securities laws could negatively affect our stock price and adversely affect our potential results of operations, cash flow and financial condition after we commence operations.
Our history of recurring losses and anticipated expenditures raises substantial doubt about our ability to continue as a going concern. Our ability to continue as a going concern requires that we obtain sufficient funding to finance our operations.
We have incurred significant operating losses to date, and it is possible we may never generate a profit. Our consolidated financial statements included elsewhere in this proxy statement/prospectus have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the ordinary course of business. These consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of these uncertainties related to our ability to operate on a going concern basis.
We have concluded that our recurring losses from operations and need for additional financing to fund future operations raise substantial doubt about our ability to continue as a going concern. Similarly, our independent registered public accounting firm included an explanatory paragraph in its report on our consolidated financial statements as of and for the year ended December 31, 2021 with respect to this uncertainty. We believe that the $64.7 million of gross proceeds raised in May 2021 from the sale of our Series B redeemable convertible preferred stock, coupled with successful completion of the Business Combination, will eliminate this doubt and enable us to continue as a going concern; however, we may need to obtain alternative financing or significantly modify our operational plans for us to continue as a going concern. Based upon our current operating plan and assumptions, we believe that our existing cash and cash equivalents, including the
 
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results of the Business Combination, will be sufficient to fund our operations for at least the next 12 months. This estimate is based on assumptions that may prove to be wrong, and we could use our available capital resources sooner than we expect. Changes may occur beyond our control that would cause us to consume our available capital before that time, including changes in and progress of our development activities and changes in regulation. Our future capital requirements will depend on many factors, including:
 
   
the scope, rate of progress, results and costs of platform development activities, preclinical studies, laboratory testing and clinical trials for our product candidates;
 
   
the number and development requirements of product candidates that we may pursue, and other indications for our current product candidates that we may pursue;
 
   
the costs, timing and outcome of regulatory review of our product candidates;
 
   
the scope and costs of constructing and operating our planned cGMP and cGTP facility and any commercial manufacturing activities;
 
   
the cost associated with commercializing any approved product candidates;
 
   
the cost and timing of developing our ability to establish sales and marketing capabilities, if any;
 
   
the cost and timing of maintaining and expanding the applications of our gene circuit platform technology;
 
   
the costs of preparing, filing and prosecuting patent applications, maintaining, enforcing and protecting our intellectual property rights, defending intellectual property-related claims and obtaining licenses to third-party intellectual property;
 
   
the timing and amount of any milestone and royalty payments we are required to make under our present or future license agreements;
 
   
our ability to establish and maintain strategic partnerships and collaborations, including any biomanufacturing partnerships or collaborations involving the use of our platform technology, on favorable terms, if at all; and
 
   
the extent to which we acquire or
in-license
other product candidates and technologies and associated intellectual property.
We will require additional capital to complete our planned clinical development programs for our current product candidates to obtain regulatory approval. Any additional capital raising efforts may divert our management from their
day-to-day
activities, which may adversely affect our ability to develop and commercialize our current and future product candidates, if approved.
In addition, we cannot guarantee that future financing will be available on a timely basis, in sufficient amounts or on terms acceptable to us, if at all. Moreover, the terms of any financing may adversely affect the holdings or the rights of our stockholders and the issuance of additional securities by us, whether equity or debt, or the market perception that such issuances are likely to occur, could cause the market price of our common stock to decline. If we are unable to raise sufficient capital when needed, our business, financial condition and results of operations will be harmed, and we will need to significantly modify our operational plans to continue as a going concern. If we are unable to continue as a going concern, we might have to liquidate our assets and the values we receive for our assets in liquidation or dissolution could be significantly lower than the values reflected in our consolidated financial statements.
Our ability to use net operating loss carryforwards, or NOLs, and credits to offset future taxable income may be subject to certain limitations.
Our net operating loss carryforwards, or NOLs, could expire unused and be unavailable to offset future income tax liabilities because of their limited duration or because of restrictions under U.S. tax law. NOLs generated in taxable years beginning before January 1, 2018 are permitted to be carried forward for 20 taxable
 
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years under applicable U.S. federal income tax law. Under the Tax Cuts and Jobs Act of 2017, or the Tax Act, as modified by the Coronavirus Aid, Relief and Economic Security Act, or the CARES Act, NOLs arising in tax years beginning after December 31, 2020 may not be carried back. Moreover, under the Tax Act as modified by the CARES Act, NOLs generated in taxable years beginning after December 31, 2017 may be carried forward indefinitely, but the deductibility of such NOLs generally will be limited in taxable years beginning after December 31, 2020 to 80% of current year taxable income. As of December 31, 2020, we had NOLs for federal and state income tax purposes of approximately $109.9 million, a portion of which expire beginning in 2036 if not utilized. NOLs generated in 2020 for federal tax reporting purposes of approximately $23.7 million have an indefinite life.
In general, under Section 382 of the Internal Revenue Code of 1986, as amended, or the Code, a corporation that undergoes an “ownership change” (defined under Section 382 of the Code and applicable Treasury Regulations as a greater than 50 percentage point change (by value) in a corporation’s equity ownership by certain stockholders over a rolling three-year period) is subject to limitations on its ability to utilize its
pre-change
NOLs to offset future taxable income. We have not determined whether our NOLs are limited under Section 382 of the Code. We may have experienced ownership changes in the past and may experience ownership changes in the future, including as a result of the Business Combination or subsequent shifts in our stock ownership (some of which are outside our control). Furthermore, our ability to utilize NOLs of companies that we may acquire in the future may be subject to limitations. There is also a risk that due to regulatory changes, such as suspensions on the use of NOLs or other unforeseen reasons, our existing NOLs could expire or otherwise be unavailable to reduce future income tax liabilities, including for state tax purposes. For these reasons, we may not be able to utilize a material portion of the NOLs reflected on our balance sheet, even if we attain profitability, which could potentially result in increased future tax liability to us and could adversely affect our operating results and financial condition.
Risks Related to the Development and Clinical Testing of Our Product Candidates
Our current product candidates are in preclinical development and have never been tested in humans. One or all of our current product candidates may fail in clinical development or suffer delays that materially and adversely affect their commercial viability.
We have no products on the market or that have gained regulatory approval or that have entered clinical trials. None of our product candidates has ever been tested in humans. Our ability to achieve and sustain profitability depends on obtaining regulatory approvals for and successfully commercializing product candidates, either alone or with collaborators.
Before obtaining regulatory approval for the commercial distribution of our product candidates, we or a collaborator must conduct extensive preclinical studies, followed by clinical trials to demonstrate the safety, purity and potency, or efficacy of our product candidates in humans. There is no guarantee that the U.S. Food and Drug Administration, or the FDA, will permit us to conduct clinical trials. Further, we cannot be certain of the timely completion or outcome of our preclinical studies and cannot predict if the FDA or other regulatory authorities will accept our proposed clinical programs, our clinical protocols or if the outcome of our preclinical studies will ultimately support the further development of our preclinical programs or testing in humans. As a result, we cannot be sure that we will be able to submit Investigational New Drugs, or INDs, or similar applications for our proposed clinical programs on the timelines we expect, if at all, and we cannot be sure that submission of INDs or similar applications will result in the FDA or other regulatory authorities allowing clinical trials for any of our product candidates to begin.
Our current product candidates are in preclinical development and we are subject to the risks of failure inherent in the development of product candidates based on novel approaches, targets and mechanisms of action. Although we anticipate initiating clinical trials for our lead product candidates, there is no guarantee that we will be able to proceed with clinical development of any of these product candidates or that any product candidate will demonstrate a clinical benefit once we advance these candidates to testing in patients. Accordingly, you should consider our prospects in light of the costs, uncertainties, delays and difficulties frequently encountered by preclinical stage biotechnology companies such as ours.
 
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We may not be able to access the financial resources to continue development of, or to enter into any collaborations for, any of our current or potential future product candidates. This may be exacerbated if we experience any issues that delay or prevent regulatory approval of, or our ability to commercialize, a product candidate, such as:
 
   
negative or inconclusive results from our preclinical studies or clinical trials or the clinical trials of others for product candidates similar to ours, leading to a decision or requirement to conduct additional preclinical studies or clinical trials or abandon any or all of our programs;
 
   
product-related side effects experienced by participants in our clinical trials or by individuals using therapeutics similar to our product candidates;
 
   
delays in submitting IND applications or comparable foreign applications, or delays or failures to obtain the necessary approvals from regulatory authorities to commence a clinical trial, or a suspension or termination of a clinical trial once commenced;
 
   
conditions imposed by the FDA or other regulatory authorities regarding the scope or design of our clinical trials;
 
   
delays in enrolling research subjects in clinical trials;
 
   
high
drop-out
rates of research subjects;
 
   
inadequate supply or quality of product candidate components or materials or other supplies necessary for the conduct of our clinical trials;
 
   
chemistry, manufacturing and control, or CMC, challenges associated with manufacturing and scaling up biologic product candidates to ensure consistent quality, stability, purity and potency among different batches used in clinical trials;
 
   
greater-than-anticipated clinical trial costs;
 
   
poor potency or effectiveness of our product candidates during clinical trials;
 
   
unfavorable FDA or other regulatory authority inspection and review of a clinical trial or manufacturing site;
 
   
delays as a result of the COVID-19 pandemic or events associated with the pandemic;
 
   
failure of our third-party contractors or investigators to comply with regulatory requirements or otherwise meet their contractual obligations in a timely manner, or at all;
 
   
delays and changes in regulatory requirements, policies and guidelines; or
 
   
the FDA or other regulatory authorities interpreting our data differently than we do.
Further, we and any existing or potential future collaborator may never receive approval to market and commercialize any product candidate. Even if we or any existing or potential future collaborator obtains regulatory approval, the approval may be for targets, disease indications or patient populations that are not as broad as we intended or desired or may require labeling that includes significant use or distribution restrictions or safety warnings. We or an existing or potential future collaborator may also be subject to post-marketing testing requirements to maintain regulatory approval.
If any of our current or potential future product candidates is ever tested in humans, it may not demonstrate the safety, purity and potency, or efficacy, necessary to become approvable or commercially viable.
None of our current product candidates have ever been tested in humans. We may ultimately discover that our current product candidates do not possess certain properties that we believe are helpful for therapeutic effectiveness and safety or would otherwise support the submission of an IND application on the timelines we expect, or at all. We do not know if the observations we have made regarding our gene circuits generally and our
 
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product candidates in particular will translate into any clinical response when tested in humans. As an example, while the Tumor-Associated Antigen (TAA) CD33 has been clinically validated as a target for an approved antibody-drug conjugate therapy, it has not been clinically validated as a target for
CAR-NK
or
CAR-T
therapies, and may not prove to be a clinically sufficient target for the
CAR-NK
therapies we are developing. As a result of these uncertainties related to our gene circuit platform technologies and our product candidates, we may never succeed in developing a marketable product based on our current product candidates. If any of our current or potential future product candidates prove to be ineffective, unsafe or commercially unviable, our entire pipeline could have little, if any, value, which could have a material adverse effect on our business, financial condition, results of operations and prospects.
Our gene circuit platform technologies are based on novel technologies that are unproven and may not result in approvable or marketable products, which exposes us to unforeseen risks and makes it difficult for us to predict the time and cost of product development and potential for regulatory approval.
We are seeking to identify and develop a broad pipeline of product candidates using our gene circuit platform technologies. The scientific research that forms the basis of our efforts to develop product candidates with our platforms is still ongoing. We are not aware of any FDA approved therapeutics utilizing similar technologies as ours. Further, the scientific evidence to support the feasibility of developing therapeutic treatments based on our platform technologies is preliminary. As a result, we are exposed to a number of unforeseen risks and it is difficult to predict the types of challenges and risks that we may encounter during development of our product candidates. For example, we have not tested any of our current product candidates in humans, and our current data is limited to animal models and preclinical cell lines, the results of which may not translate into humans. Further, relevant animal models and assays may not accurately predict the safety and efficacy of our product candidates in humans, and we may encounter significant challenges creating appropriate models and assays for demonstrating the safety and efficacy of our product candidates. In addition, our gene circuit technologies have potential safety risks. For example, if the NOT GATE gene circuit, as described below, engineered into one of our product candidates, such as
SENTI-202,
does not provide a clinically sufficient level of inhibition, it may kill healthy cells that it has been designed to preserve or may cause systemic immune cytotoxicity. As another example, if the small-molecular Regulator Dial does not achieve a clinically sufficient level of control over
IL-12
secretion, either leaky
IL-12
production in the uninduced state or overproduction of
IL-12
in the induced state may result in systemic immune toxicity. It is possible that safety events or concerns such as these or others could negatively affect the development of our product candidates, including adversely affecting patient enrollment among the patient populations that we intend to treat.
Given the novelty of our technologies, we intend to work closely with the FDA and comparable foreign regulatory authorities to evaluate our proposed approaches to obtain regulatory approval for our product candidates; however, due to a lack of comparable experiences, the regulatory pathway with the FDA and comparable regulatory authorities may be more complex and time-consuming relative to other more well-known therapeutics. Even if we obtain human data to support our product candidates, the FDA or comparable foreign regulatory agencies may lack experience in evaluating the safety and efficacy of our product candidates developed using our platforms, which could result in a longer than expected regulatory review process, increase our expected development costs, and delay or prevent commercialization of our product candidates. The validation process takes time and resources, may require independent third-party analyses, and may not be accepted or approved by the FDA and comparable foreign regulatory authorities. We cannot be certain that our approach will lead to the development of approvable or marketable products, alone or in combination with other therapies.
We may not be successful in our efforts to use and expand our gene circuit platform to expand our pipeline of product candidates.
A key element of our strategy is to use and advance our gene circuit platform to design, test and build our portfolio of product candidates focused on allogeneic gene circuit-equipped
CAR-NK
cell therapies for the
 
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treatment of cancer. Although our research and development efforts to date have resulted in our discovery and preclinical development of
SENTI-202,
SENTI-301,
SENTI-401
and other potential product candidates, none of these product candidates has advanced to clinical development. We cannot assure you that any of our existing product candidates will advance to clinical trials or, if they do, that such trials will demonstrate these product candidates to be safe or effective therapeutics, and we may not be able to successfully develop any product candidates. Even if we are successful in expanding our pipeline of product candidates, any additional product candidates that we identify may not be suitable for clinical development or generate acceptable clinical data, including as a result of being shown to have unacceptable effects or other characteristics that indicate that they are unlikely to be products that will receive marketing approval from the FDA or other regulatory authorities or achieve market acceptance. If we do not successfully develop and commercialize product candidates, we will not be able to generate product revenue in the future.
Although we intend to explore other therapeutic opportunities in addition to the product candidates that we are currently developing, we may fail to identify viable new product candidates for clinical development for a number of reasons. If we fail to identify additional potential product candidates, our business could be materially harmed.
Although a substantial amount of our efforts will focus on the planned clinical trials and potential approval of the current and potential future product candidates we are evaluating, a key element of our strategy is to discover, develop, manufacture and globally commercialize additional targeted therapies beyond our current product candidates to treat various conditions and in a variety of therapeutic areas. Even if we identify investigational therapies that initially show promise, we may fail to successfully develop and commercialize such products for many reasons, including the following:
 
   
the research methodology used may not be successful in identifying potential investigational therapies;
 
   
competitors may develop alternatives that render our investigational therapies obsolete;
 
   
investigational therapies we develop may nevertheless be covered by third parties’ patents or other exclusive rights;
 
   
an investigational therapy may, on further study, be shown to have harmful side effects or other characteristics that indicate it is unlikely to be effective or otherwise does not meet applicable regulatory criteria;
 
   
it may take greater human and financial resources than we will possess to identify additional therapeutic opportunities for our product candidates or to develop suitable potential product candidates through internal research programs, thereby limiting our ability to develop, diversify and expand our product portfolio;
 
   
an investigational therapy may not be capable of being produced in clinical or commercial quantities at an acceptable cost, or at all; and
 
   
an approved product may not be accepted as safe and effective by trial participants, the medical community or third-party payors.
Identifying new investigational therapies requires substantial technical, financial and human resources, whether or not any investigational therapies are ultimately identified. Because we have limited financial and human resources, we may initially focus on research programs and product candidates for a limited set of indications. As a result, we may forgo or delay pursuit of opportunities with other product candidates or for other indications that later prove to have greater commercial potential or a greater likelihood of success. Our resource allocation decisions may cause us to fail to capitalize on viable commercial products or profitable market opportunities. For example, if we do not accurately evaluate the commercial potential or target market for a particular product candidate or technology, we may relinquish valuable rights to that product candidate or technology through collaborations, licensing or other royalty arrangements in cases in which it would have been
 
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more advantageous for us to retain sole development and commercialization rights to such product candidate or technology.
Accordingly, there can be no assurance that we will ever be able to identify additional therapeutic opportunities for our product candidates or to develop suitable potential product candidates through internal research programs, which could materially adversely affect our future growth and prospects. We may focus our efforts and resources on potential product candidates or other potential programs that ultimately prove to be unsuccessful.
The market, physicians, patients, regulators and potential investors, may not be receptive to our current or potential future product candidates and may be skeptical of the viability and benefits of our gene circuit pipeline technology because it is based on a relatively novel and complex technology.
The market, physicians, patients, regulators and potential investors, may be skeptical of the viability and benefits of our gene circuit pipeline technology or our product candidates because they are based on a relatively novel and complex technology and there can be no assurance that our product candidates or platform technologies will be understood, approved, or accepted. If potential investors are skeptical of the success of our pipeline products, our ability to raise capital and the value of our stock may be adversely affected. If physicians, patients, or regulators do not understand or accept our gene circuit platform technologies or our product candidates, we may be delayed in or unable to develop our product candidates.
Even if regulatory approval is obtained for a product candidate, including
SENTI-202,
SENTI-301
and
SENTI-401,
we may not generate or sustain revenue from sales of approved products. Market acceptance of our gene circuit platform technologies and our current and potential future product candidates, if approved, will depend on, among other factors:
 
   
the timing of our receipt of any marketing and commercialization approvals;
 
   
the terms of any approvals and the countries in which approvals are obtained;
 
   
the safety and efficacy of our product candidates and gene circuit technologies in general;
 
   
the prevalence and severity of any adverse side effects associated with our product candidates;
 
   
limitations or warnings contained in any labeling approved by the FDA or other regulatory authority;
 
   
relative convenience and ease of administration of our product candidates;
 
   
the success of our physician education programs;
 
   
the availability of coverage and adequate government and third-party payor reimbursement;
 
   
the pricing of our products, particularly as compared to alternative treatments; and
 
   
availability of alternative effective treatments for the disease indications our product candidates are intended to treat and the relative risks, benefits and costs of those treatments.
If any product candidate we commercialize fails to achieve market acceptance, it could have a material adverse effect on our business, financial condition, results of operations and prospects.
The occurrence of serious complications or side effects in connection with use of our product candidates, either in clinical trials or post-approval, could lead to discontinuation of our clinical development programs, refusal of regulatory authorities to approve our product candidates or, post-approval, revocation of marketing authorizations or refusal to approve applications for new indications, which could severely harm our business, prospects, operating results and financial condition.
Undesirable side effects caused by any of our current or potential future product candidates could cause regulatory authorities to interrupt, delay or halt clinical trials and could result in a more restrictive label or the
 
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delay or denial of regulatory approval by the FDA or other regulatory authorities. While we have not yet initiated clinical trials for
SENTI-202,
SENTI-301,
SENTI-401
or any other product candidate, it is likely that there will be side effects associated with their use. Results of our clinical trials could reveal a high and unacceptable severity and prevalence of these side effects. For example, if the NOT GATE gene circuit engineered into one of our product candidates, such as
SENTI-202,
does not provide a clinically sufficient level of inhibition, it may kill healthy cells that it has been designed to preserve or may cause systemic immune cytotoxicity. As another example, if the small-molecular Regulator Dial does not achieve a clinically sufficient level of control over
IL-12
secretion, either leaky
IL-12
production in the uninduced state or overproduction of
IL-12
in the induced state may result in systemic immune toxicity. It is possible that safety events or concerns such as these or others could negatively affect the development of our product candidates, including adversely affecting patient enrollment among the patient populations that we intend to treat. In such an event, our trials could be suspended or terminated, and the FDA or other regulatory authorities could order us to cease further development of or deny approval of a product candidate for any or all targeted indications. Such side effects could also affect patient recruitment or the ability of enrolled patients to complete the trial or result in potential product liability claims. To date, we have not observed any such effects in our preclinical studies, but there can be no guarantee that our current or future product candidates will not cause such effects in clinical trials. Any of these occurrences may materially and adversely affect our business and financial condition and impair our ability to generate revenues.
Further, clinical trials by their nature utilize a sample of the potential patient population. With a limited number of patients and limited duration of exposure, rare and severe side effects of a product candidate may only be uncovered when a significantly larger number of patients are exposed to the product candidate or when patients are exposed for a longer period of time.
In the event that any of our current or potential future product candidates receives regulatory approval and we or others identify undesirable side effects caused by one of these products, any of the following events could occur, which could result in the loss of significant revenue to us and materially and adversely affect our results of operations and business:
 
   
regulatory authorities may withdraw their approval of the product or seize the product;
 
   
we may be required to recall the product or change the way the product is administered to patients;
 
   
additional restrictions may be imposed on the marketing of the particular product or the manufacturing processes for the product or any component thereof;
 
   
we may be subject to fines, injunctions or the imposition of civil or criminal penalties;
 
   
regulatory authorities may require the addition of labeling statements, such as a “black box” warning or a contraindication;
 
   
we may be required to create a Medication Guide outlining the risks of such side effects for distribution to patients;
 
   
we could be sued and held liable for harm caused to patients;
 
   
the product may become less competitive; and
 
   
our reputation may suffer.
Any of these events could prevent us from achieving or maintaining market acceptance of the particular product candidate, if approved, and could significantly harm our business, results of operations and prospects.
While we believe our pipeline will yield multiple INDs, we may not be able to file INDs to commence clinical trials on the timelines we expect, and even if we are able to, the FDA may not permit us to proceed.
We expect our pipeline to yield multiple INDs beginning as early as 2023, including INDs for
SENTI-202
and
SENTI-301.
We cannot be sure that submission of an IND will result in the FDA allowing testing and
 
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clinical trials to begin, or that, once begun, issues will not arise that suspend or terminate such clinical trials. The manufacturing of our product candidates, including
SENTI-202,
SENTI-301
and
SENTI-401,
remains an emerging and evolving field. Accordingly, we expect chemistry, manufacturing and control related topics, including product specifications, will be a focus of IND reviews, which may delay the clearance of INDs. Additionally, even if such regulatory authorities agree with the design and implementation of the clinical trials set forth in an IND or clinical trial application, we cannot guarantee that such regulatory authorities will not change their requirements in the future.
In addition to the submission of an IND to the FDA before initiation of a clinical trial in the United States, certain human clinical trials involving recombinant or synthetic nucleic acid molecules are subject to oversight of institutional biosafety committees, or IBCs, as set forth in the NIH Guidelines for Research Involving Recombinant or Synthetic Nucleic Acid Molecules, or NIH Guidelines. Under the NIH Guidelines, recombinant and synthetic nucleic acids are defined as: (i) molecules that are constructed by joining nucleic acid molecules and that can replicate in a living cell (i.e., recombinant nucleic acids); (ii) nucleic acid molecules that are chemically or by other means synthesized or amplified, including those that are chemically or otherwise modified but can base pair with naturally occurring nucleic acid molecules (i.e., synthetic nucleic acids); or (iii) molecules that result from the replication of those described in (i) or (ii). Specifically, under the NIH Guidelines, supervision of human gene transfer trials includes evaluation and assessment by an IBC, a local institutional committee that reviews and oversees research utilizing recombinant or synthetic nucleic acid molecules at that institution. The IBC assesses the safety of the research and identifies any potential risk to public health or the environment, and such review may result in some delay before initiation of a clinical trial. While the NIH Guidelines are not mandatory unless the research in question is being conducted at or sponsored by institutions receiving NIH funding of recombinant or synthetic nucleic acid molecule research, many companies and other institutions not otherwise subject to the NIH Guidelines voluntarily follow them.
Interim, topline and preliminary data that we announce or publish from time to time for any clinical trials that we initiate may change as more patient data become available or as additional analyses are conducted, and as the data are subject to audit and verification procedures that could result in material changes in the final data.
From time to time, we may publicly disclose interim, preliminary or topline data from our preclinical studies and clinical trials, which is based on a preliminary analysis of then-available data, and the results and related findings and conclusions are subject to change following a more comprehensive review of the data related to the particular trial. We also make assumptions, estimations, calculations and conclusions as part of our analyses of data, and we may not have received or had the opportunity to fully and carefully evaluate all data. As a result, the interim, preliminary or topline results that we report may differ from future results of the same trials, or different conclusions or considerations may qualify such results, once additional data have been received and fully evaluated. Topline data also remain subject to audit and verification procedures that may result in the final data being materially different from the preliminary data we previously published. As a result, topline data should be viewed with caution until the final data are available. From time to time, we may also disclose interim, preliminary or topline data from our clinical studies. Interim, topline or preliminary data from clinical trials that we may complete are subject to the risk that one or more of the clinical outcomes may materially change as patient enrollment continues and more patient data become available. Adverse differences between preliminary, topline or interim data and final data could significantly harm our business prospects.
Further, others, including regulatory agencies, may not accept or agree with our assumptions, estimates, calculations, conclusions or analyses or may interpret or weigh the importance of data differently, which could impact the value of the particular program, the approvability or commercialization of the particular product candidate or product and the value of our company in general. In addition, the information we choose to publicly disclose regarding a particular study or clinical trial is based on what is typically extensive information, and you or others may not agree with what we determine is the material or otherwise appropriate information to include in our disclosure, and any information we determine not to disclose may ultimately be deemed significant with respect to future decisions, conclusions, views, activities or otherwise regarding a particular product, product
 
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candidate or our business. If the topline data that we report differ from actual results, or if others, including regulatory authorities, disagree with the conclusions reached, our ability to obtain approval for, and commercialize, our product candidates may be harmed, which could harm our business, operating results, prospects or financial condition.
We and our collaborators may not achieve projected discovery and development milestones and other anticipated key events in the time frames that we or they announce, which could have an adverse impact on our business and could cause our stock price to decline.
From time to time, we expect that we will make public statements regarding the expected timing of certain milestones and key events, such as the commencement and completion of preclinical and
IND-enabling
studies in our product candidate discovery programs with collaborators as well as the commencement and completion of planned clinical trials in those programs. The actual timing of these events can vary dramatically due to a number of factors such as delays or failures in our or any future collaborators’product candidate discovery and development programs, the amount of time, effort and resources committed by us and any future collaborators, and the numerous uncertainties inherent in the development of therapies. As a result, there can be no assurance that our or any future collaborators’ programs will advance or be completed in the time frames we or they announce or expect. If we or any collaborators fail to achieve one or more of these milestones or other key events as planned, our business could be materially adversely affected, and the price of our common stock could decline.
Clinical trials are expensive, time-consuming and difficult to design and implement.
Human clinical trials are expensive and difficult to design and implement, in part because they are subject to rigorous regulatory requirements. Because our current and potential future product candidates are based on new technologies and discovery approaches, we expect that they will require extensive research and development and have substantial manufacturing and processing costs. In addition, the FDA or other regulatory authorities may require us to perform additional testing before commencing clinical trials and be hesitant to allow us to enroll patients impacted with our targeted disease indications in our future clinical trials. If we are unable to enroll patients impacted by our targeted disease indications in our future clinical trials, we would be delayed in obtaining potential
proof-of-concept
data in humans, which could extend our development timelines. In addition, costs to treat patients and to treat potential side effects that may result from our product candidates may be significant. Accordingly, our clinical trial costs are likely to be high and could have a material adverse effect on our business, financial condition, results of operations and prospects.
If we encounter difficulties enrolling patients in our clinical trials, our clinical development activities could be delayed or otherwise adversely affected.
We may not be able to initiate or continue any clinical trials for our current or potential future product candidates if we are unable to locate and enroll a sufficient number of eligible patients to participate in these trials as required by the FDA or other regulatory authorities. We cannot predict how difficult it will be to enroll patients for trials in the indications we are studying. We may experience difficulties in patient enrollment in our clinical trials for a variety of reasons. The enrollment of patients depends on many factors, including:
 
   
the severity of the disease under investigation;
 
   
the patient eligibility criteria defined in the clinical trial protocol;
 
   
the size of the patient population required for analysis of the trial’s primary endpoints;
 
   
the proximity and availability of clinical trial sites for prospective patients;
 
   
willingness of physicians to refer their patients to our clinical trials;
 
   
our ability to recruit clinical trial investigators with the appropriate competencies and experience;
 
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clinicians’ and patients’ perceptions as to the potential advantages of the product candidate being studied in relation to other available therapies, including any new drugs that may be approved for the indications we are investigating;
 
   
our ability to obtain and maintain patient consents;
 
   
the risk that patients enrolled in clinical trials will drop out of the trials before completion; and
 
   
factors we may not be able to control, such as current or potential pandemics, including the ongoing
COVID-19 pandemic,
that may limit the availability of patients, principal investigators or staff or clinical sites to participate in our clinical trials.
In addition, our future clinical trials will compete with other clinical trials for product candidates that are in the same therapeutic areas as our product candidates, and this competition will reduce the number and types of patients available to us, because some patients who might have opted to enroll in our trials may instead opt to enroll in a trial being conducted by one of our competitors. Since the number of qualified clinical investigators is limited, we expect to conduct some of our clinical trials at the same clinical trial sites that some of our competitors use, which will reduce the number of patients who are available for our clinical trials at such clinical trial sites. Additionally, because some of our clinical trials will be in patients with advanced disease who may experience disease progression or adverse events independent from our product candidates, such patients may be unevaluable for purposes of the trial and, as a result, we may require additional enrollment. Delays in patient enrollment may result in increased costs or may affect the timing or outcome of the planned clinical trials, which could prevent completion of these trials and adversely affect our ability to advance the development of our product candidates.
If clinical trials for our product candidates are prolonged, delayed or stopped, we may be unable to seek or obtain regulatory approval and commercialize our product candidates on a timely basis, or at all, which would require us to incur additional costs and delay our receipt of any product revenue.
We may experience delays in our ongoing or future preclinical studies or clinical trials, and we do not know whether future preclinical studies or clinical trials will begin on time, need to be redesigned, enroll an adequate number of patients on time or be completed on schedule, if at all. The co