Company: CIO
Filing Date: 2025-08-22
Form Type: PREM14A
Source: 0001193125-25-186443
Chunk: 51

Company: City Office REIT, Inc.
Filing Date: 2025-08-22
Form: PREM14A
Chunk 51
---
 a definitive merger
agreement over a period of 60 days, (b) the transaction would be funded with a combination of equity financing and debt financing, (c) the Company would be prohibited from declaring or paying dividends during

33

the interim period between signing and closing the transaction, and (d) the transaction would be subject to customary closing conditions. The April 22 Letter also stated that Morning
Calm, Elliott and the Company would enter into an exclusivity agreement and that the “no shop” concept of such agreement would be included in the definitive agreement as an interim covenant. The April 22 Letter did not outline any
other material terms of the proposal in any material manner. The April 22 Letter was circulated to the Board, as well as the representatives of the Financial Advisors and DLA Piper.

Later on April 22, 2025, the Board held a meeting, which was attended by the Company’s senior management, the representatives of the Financial
Advisors and DLA Piper. DLA Piper provided an overview of the directors’ fiduciary duties owed to the Company’s stockholders. Next, representatives of Raymond James reviewed the April 22 Letter with the Board, and discussed the
conditions to the offer, including the “no shop” concept, the exclusivity requirement, and the suspension of dividend payments during the interim period between signing a definitive agreement and the closing of the transaction. The Board
then engaged in discussions regarding the April 22 Letter and SWVP’s offer to purchase the Phoenix Assets. At the conclusion of the meeting, the Board instructed management to approach SWVP to increase its offer for the Phoenix Assets and
provided its support to continue discussions with Morning Calm.

On April 28, 2025, the Company and SWVP executed a letter of intent to sell the
Phoenix Assets for $296 million, which included the following terms, among others, (a) a 45-day feasibility period, with a right to extend such period for an additional 30 days, (b) no financing
contingency, (c) a minimum period before SWVP could waive its due diligence conditions and (d) an ability for the Company to terminate the definitive agreement in exchange for a breakup fee payment.

On April 30, 2025, the Company entered into an exclusivity agreement (the “Exclusivity Agreement”) with Morning Calm. The Exclusivity
Agreement provided for a 60-day exclusivity period, by which Morning Calm was required