Twelve Seas Investment Company II Rights represent derivative securities issued as part of the initial units of a special purpose acquisition company. Each right was originally bundled with common shares in the company’s IPO and is structured to convert into a fraction of a Class A common share upon the successful completion of a qualifying business combination, subject to the terms defined in the company’s offering documents. These rights provide holders with an additional equity entitlement beyond the underlying common shares, functioning as a built-in sweetener to attract capital during the blank-check company’s capital raise. In the broader market structure, such rights are a common feature of SPAC financings, designed to balance sponsor, target, and investor interests while preserving cash in trust until a merger is completed. They typically trade separately from the units and common shares after a designated date, allowing investors to manage exposure to the potential future equity issuance linked to the SPAC’s combination strategy.