Abri I, Inc - Strategy & Acquisition

Business & Strategy

Our business strategy is to identify and complete a business combination that creates substantial long-term value for our stockholders. We intend to concentrate our efforts on identifying companies that power transformation and provide disruptive technological innovation in a range of traditionally managed industries with particular emphasis on the financial and insurance service industries (“FinTech” & “InsurTech").

To date, we have not identified any potential business combination target and we have not, nor has anyone on our behalf, initiated any discussions, directly or indirectly, with any potential business combination target. Furthermore, we have not conducted any operations and have not generated any revenues to date, and we will not generate operating revenues until, at the earliest, after we consummate our initial business combination.

While we intend to concentrate our efforts on FinTech and InsurTech, there is no surety that we will be able to identify a suitable target company for our initial business combination in these industries, and hence we may execute our initial business combination with an entity outside these industries. We will seek target companies that demonstrate the characteristics set out below under “Acquisition Criteria”.

We believe our Investment Team’s operational, financial and transaction experience across economic cycles, along with our deep understanding of capital markets will allow us to effectively and efficiently identify and evaluate potential opportunities for our business combination. Our target selection process will leverage our network of industry, private equity, and credit relationships, as well as relationships with management of public and private companies, investment bankers, restructuring advisers, attorneys and accountants, which we believe should provide us with a number of business combination opportunities.

Acquisition Criteria

Consistent with our business strategy and core investment approach, we expect to identify quality companies that have many of the characteristics listed below. We will use these criteria and guidelines in evaluating acquisition opportunities, but we may decide to complete our initial business combination with a target business that does not meet all or any of these criteria. We will seek to acquire companies that have the following characteristics:

Strong Management Team

We will seek to acquire one or more businesses or assets that have strong and experienced management teams whose interests are aligned with those of our stockholders and complement the expertise of our management team. Where necessary, we may also look to complement and enhance the capabilities of the target business’s management team by recruiting additional talent through our network of contacts. We will focus on management teams that possess technical expertise, and those with a proven track record of driving revenue growth, enhancing profitability, and creating value for their stockholders.

Unique Industry Positioning.

We will seek to acquire one or more businesses that have a leading or niche market position and that demonstrate advantages when compared to their competitors, if any, which may help to create barriers to entry against new competition. We anticipate that these barriers to entry will enhance the ability of these businesses to generate strong profitability and free cash flow.

Recurring Revenue.

We will seek to acquire one or more businesses or assets that have a history of, or potential for, strong, sustainable recurring and predictable revenue streams.

Ready to be Public.

We will seek to identify companies that are public-ready with strong organizational structures, procedures, and processes in place. We will seek to partner with the potential target’s management team and expect that the reporting, operating, and investment abilities of our management team and board will complement their own capabilities. We will also seek management teams that believe in, and practice, open and transparent reporting and corporate governance with a strong commitment to basic environmental, social and governance (“ESG”) principles.

Significant Expansion and/or Underexploited Growth Opportunities.

We intend to seek target companies that have significant and underexploited expansion and deployment opportunities. This can be accomplished through a combination of accelerating organic growth and finding attractive bolt-on acquisition targets. Our management team has significant experience in identifying such targets and in helping target management assess strategic and financial fit, especially relating to ideological compatibility and process/procedure integration of any possible acquisition.

Diversified Customer and Supplier Base.

We will seek to acquire one or more businesses that have a diversified customer and supplier base, which are generally better able to endure economic downturns, industry consolidation, changing business preferences and other factors that may negatively impact their customers, suppliers and competitors.

Opportunities for Bolt-on Acquisitions.

We will seek to acquire one or more businesses that can grow both organically and/or through acquisition. In addition, we believe that our ability to source proprietary opportunities and execute transactions will help the businesses we acquire grow through acquisition, and thus serve as a platform for further bolt-on acquisitions.

Attractive Risk-Adjusted Returns for our Stockholders.

We intend to seek to acquire a business combination target on terms and in a manner that leverages our experience. We expect to evaluate the business combination target company based on its potential to successfully achieve deployment and end-user uptake of its product(s). We also expect to evaluate financial returns based on (i) risk-adjusted peak sales potential, (ii) the growth potential of pipeline products and the technology platform, (iii) the ability to accelerate growth via other options, including through the opportunity for bolt-on acquisitions, and (iv) prospects for creating value through other initiatives. Potential upside will be weighed against any identified downside risks.

Unrecognized Value or Misevaluation by the Market.

We will seek business combination targets which exhibit inherent value or other characteristics that we believe have been overlooked or misevaluated by the market based on our due diligence and company-specific analyses. For a potential business target, this process may include a review and analysis of the company’s capital structure, quality of current or future earnings, an assessment of their current state of technology, current deployment and penetration plans, potential for operational improvements, corporate governance, customers and concentration, along with material contracts. We intend to leverage the operational experience and disciplined investment approach of our management team to identify opportunities to unlock value that our experience in complex transactions allows us to pursue.

Can Benefit from Access to Public Capital Markets.

We believe that there are a substantial number of potential target businesses that can benefit from a public listing and access to new capital to support significant revenue and earnings growth or to facilitate technology development and deployment.

The above criteria are not intended to be exhaustive. Any evaluation relating to the merits of a particular initial business combination may be based, to the extent relevant, on these general guidelines as well as on other considerations, factors, and criteria that our management may deem relevant. While we will use these criteria in evaluating initial business combination opportunities, we may decide to enter into our initial business combination with a target business that does not meet one or more of these criteria. In the event that we decide to enter into our initial business combination with a target business that does not substantially meet the above criteria and guidelines, we will disclose that the target business does not substantially meet the above criteria in our stockholder communications related to our initial business combination, which would be in the form of either i) tender offer documents or ii) proxy solicitation materials, either of which we would file with the SEC.