Company: TRUE
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001327318-25-000065
Chunk: 244

Company: TrueCar, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 244
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, operating results and prospects could be materially and adversely affected. In that event, the trading price of our common stock could decline and you could lose part or all of your investment. Additional risks and uncertainties not presently known to us or not believed by us to be material could also impact us.

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Risks Relating to the Merger

The Merger may not be completed within the expected timeframe, or at all, for a variety of reasons, including the possibility that Parent is unable to secure sufficient financing to consummate the Merger or the Merger Agreement is terminated, and the failure to complete the Merger could adversely affect our business, results of operations, financial condition, and the market price of our common stock.

There can be no assurance that the Merger will be completed in the expected timeframe, or at all. Although the Merger Agreement provides that we may specifically enforce Parent and Merger Subsidiary’s obligations under the Merger Agreement, we can only pursue specific performance to cause Parent and Merger Subsidiary to consummate the Merger if certain conditions are satisfied, including, among other things, that Parent receive additional debt or equity financing commitments from investors, other than the Investor and its affiliates, in an aggregate amount of $60.0 million. There can be no assurance that this additional financing will be secured.

The Merger Agreement also contains a number of customary closing conditions that must be satisfied or waived prior to the completion of the Merger, including, among others, (1) stockholder approval of the Merger, (2) the absence of any court order or law that would make illegal or otherwise prohibit or prevent the consummation of the Merger, (3) the expiration or earlier termination of certain antitrust review periods, if applicable, (4) compliance by us, Parent and Merger Subsidiary in all material respects with our respective obligations under the Merger Agreement, (5) subject to specified exceptions and qualifications for materiality, the accuracy of representations and warranties made by us and Parent, respectively, as of the signing date and the closing date, and (6) the absence of a “Material Adverse Effect” (as defined in the Merger Agreement) since the date of the Merger Agreement.

The Merger Agreement contains customary mutual termination rights for us and Parent, which could prevent the consummation of the Merger, including the right for either party to terminate the Merger Agreement in certain cases if the Merger is not completed by February 28