Company: TRUE
Filing Date: 2025-11-24
Form Type: DEFM14A
Source: 0001104659-25-115451
Chunk: 90

Company: TrueCar, Inc.
Filing Date: 2025-11-24
Form: DEFM14A
Chunk 90
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 per share on September 5, 2025.

On September 7, 2025, the Company provided a letter to Fair indicating that, among other things, the Board would support continued negotiations only with respect to a potential transaction that included a path toward consideration of at least $2.80 per share. The letter further acknowledged the timing considerations associated with entering into a rollover agreement with Stockholder B prior to execution of a definitive merger agreement and proposed that up to $0.22 per share of merger consideration be subject to entry into rollover agreements with Company Stockholders after signing a definitive merger agreement, provided that certain other terms described in the letter were met.

On September 9, 2025, Perkins and B. Riley contacted Alston and Morgan Stanley to inform them that Fair was not willing to explore a transaction whereby the per share price would increase automatically on account of additional Company Stockholders entering into rollover agreements due to their perception of the low likelihood of Company Stockholders holding a material number of shares being willing to enter into such arrangements between signing and closing.

Also on that date, the Board met, with representatives from management, Morgan Stanley, and Alston present. The Board discussed the latest offer from Fair and the likelihood of Fair being able to raise additional financing to support an acquisition of the Company at a higher valuation, whether through a rollover of Stockholder B’s equity or otherwise, and the risk of additional adverse changes in transaction terms other than the per share amount of merger consideration. The Board and management then discussed the Company’s potential strategy with respect to further engagement with Fair.

On September 12, 2025, Alston and Perkins discussed possible approaches to increase the merger consideration if Fair were able to secure additional financing between the signing of the Merger Agreement and closing.

On September 15, 2025, Mr. Reigersman and Mr. Painter spoke by telephone regarding a number of open items in the draft Merger Agreement, including the amount of the various termination fees and the Company’s request to place an amount equal to the Parent Termination Fee in escrow at the time of signing. Mr. Painter requested setting the termination fees at $2 million (for the amount due to Parent if the Merger Agreement was terminated as a result of an acquisition proposal received during the “go shop” period), $4 million (for the amount due to Parent if the Merger Agreement was terminated in certain other circumstances), and $8 million (for the amount due to the Company in certain circumstances if Parent failed