Company: TRUE
Filing Date: 2025-11-24
Form Type: DEFM14A
Source: 0001104659-25-115451
Chunk: 102

Company: TrueCar, Inc.
Filing Date: 2025-11-24
Form: DEFM14A
Chunk 102
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TABLE OF CONTENTS

The Board also considered a number of uncertainties, risks and potentially negative factors in making its determination with respect to the Merger, including the following non-exhaustive list (not necessarily in order of relative importance):

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The fact that TrueCar Stockholders will not participate in any future earnings or potential growth of TrueCar and will not benefit from any potential appreciation in the value of TrueCar, including any appreciation in value that could be realized as a result of improvements to TrueCar’s operations or strategic shifts in its business plan.

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The possible diversion of management focus and resources from operational matters and other strategic opportunities while working to consummate the Merger.

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The potential negative effect of the pendency of the transaction on TrueCar’s businesses, including its relationships with employees, customers, and suppliers, such as the possible loss of key management or other personnel of TrueCar during the pendency of the Merger.

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The risk that the Merger may not be completed, even if the Company Stockholder Approval is obtained from TrueCar Stockholders, due to a level of closing certainty in the Merger Agreement that is less than customary, including the following factors:

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If Parent fails to complete the Merger or otherwise breaches the Merger Agreement in certain circumstances, TrueCar’s remedies are effectively limited to a $15.0 million reverse termination fee, which may be inadequate to compensate TrueCar for the damage caused;

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TrueCar is entitled to seek specific performance of Parent’s obligation to complete the Merger and the Investor’s obligation to provide the Equity Financing only if Fair has obtained commitments for an additional $60 million of debt or equity financing;

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The uncommitted nature of additional financing that is required to be secured between signing and closing effectively provides Parent with the option to choose to pay the Parent Termination Fee in lieu of Closing if it no longer desires to complete the Merger or does not secure additional financing;

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The possibility that even if Parent desires to complete the Merger, additional financing may not be available on acceptable terms;

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The fact that Parent and the Investor are newly formed entities with no assets other than the Merger Agreement and the Equity Commitment Letter, and as a result TrueCar’s monetary remedy in the event of a breach of the Merger Agreement by Parent is limited to receipt of the Parent Termination Fee;

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The lack of visibility into the Investor’s sources of funds to satisfy its commitment to provide Equity Financing to Parent despite requests for financial information regarding the Investor;

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The fact that although affiliates of the