Company: GOLD
Filing Date: 2025-02-04
Form Type: 8-K
Source: 0000950170-25-012627
Chunk: 1

Company: Gold.com, Inc.
Filing Date: 2025-02-04
Form: 8-K
Item: Item 1.01
Chunk 1
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 parties. The Company has agreed to use its commercially reasonable best efforts to obtain the necessary financing to consummate the acquisition and to pay transaction related expenses.

Consummation of the acquisition is conditioned on customary and other conditions, including the consents of the parties’ lenders and other third parties necessary to consummate the transaction, receipt by the Company of financing necessary to consummate the transaction, receipt by the Company of a quality of earnings report regarding SGI satisfactory to the Company’s lenders, receipt by the Company of a supplemental disclosure schedule that does not disclose matters that are materially adverse to SGI and the specified treatment prior to closing of a warrant and certain options to acquire stock of SGI.

The major stockholders of SGI have agreed to indemnify the Company for breaches by SGI of its representations and covenants under the SGI Agreement. For these purposes, major stockholders of SGI are defined as stockholders owning 4% or more of the stock of SGI on a fully diluted basis. In the absence of fraud, (x) the indemnification obligations of the major stockholders for a breach of representations will be limited to a holdback of a portion of the stock consideration, valued at 2% of the aggregate merger consideration, or $1.84 million; and (y) the indemnification obligations of the major stockholders in total will not exceed the amount of the stock consideration. In the case of fraud the indemnification obligations of the major stockholders will not exceed the aggregate merger consideration. The representations of SGI will survive for 18 months following consummation of the transaction. After nine months, a number of shares will be issued to the major stockholders equal to 50% of (x) the holdback shares less (y) a number of shares equal in value to any indemnification claims as of that time. After 18 months, a number of shares will be issued to the major stockholders equal to the balance of the holdback less a number of shares equal in value to any indemnification claims as of that time. The indemnification obligation of the major stockholders is subject to a deductible of $250,000 and a customary de minimis basket. The Company has agreed to indemnify the major stockholders for breaches by the Company of its representations and covenants under the SGI Agreement, subject to similar qualifications and limitations.

This description is qualified by reference to the text of the SGI Agreement, which is filed as an exhibit to this Current Report on Form 8-K.