Company: TRUE
Filing Date: 2025-11-13
Form Type: PREM14A
Source: 0001104659-25-111498
Chunk: 94

Company: TrueCar, Inc.
Filing Date: 2025-11-13
Form: PREM14A
Chunk 94
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On September 29, 2025, the Board met, with representatives from management, Morgan Stanley and Alston present. Morgan Stanley summarized Fair’s most recent proposal and past proposals it had made since its initial outreach, and discussed the financial considerations related to the $2.58 per share offer price and the impact on its financial analysis. Alston discussed the consequences of making the Company’s ability to seek specific performance of Fair’s obligation to close conditional upon Parent obtaining additional financing and noted the absence of a draft Merger Agreement reflecting these terms.

Later on September 29, 2025, Perkins delivered an updated offer letter and an updated draft of the Equity Commitment Letter to Alston. The updated offer letter retained the $2.58 per share offer price, which would be funded by $164 million of committed equity financing to be provided by the Investor and the Company’s available cash on its balance sheet (which Fair and the Investor indicated they expected to be no less than $104 million at closing). However, the Company’s right to specifically enforce the Equity Commitment Letter would be conditioned on Parent obtaining signed commitments for an additional $60 million of financing. The offer also provided for a $15 million Parent Termination Fee to be placed in an escrow account at an external bank. In addition, the offer letter noted that the offer was predicated on the Company’s transaction expenses being less than a specified amount. The Company’s Common Stock closed at a trading price of $1.94 on September 29, 2025.

On September 30, 2025, Perkins delivered an updated draft of the Merger Agreement to Alson, which included, as additional conditions to closing, (i) a cap on the maximum amount of Company transaction expenses due at closing; and (ii) a requirement that the Company have a minimum of $104 million of cash on hand at closing. The draft also reflected the Company’s limited right to specifically enforce the Equity Commitment Letter as noted above, included a provision requiring all of the Company’s cash on hand to be available to be used toward closing, eliminated double-trigger protection for unvested employee equity awards, and reflected ongoing negotiations with respect to various go shop/no shop provisions and circumstances that would lead to the payment of the Termination Fee or Parent Termination Fee.

On October 1, 2025, Alston distributed an issues list to Perkins summarizing open topics in the Merger Agreement, including certainty regarding the amount of the Company’s cash available to pay the merger consideration, including