Company: CTLPP
Filing Date: 2025-07-11
Form Type: PREM14A
Source: 0001140361-25-025663
Chunk: 86

Company: CANTALOUPE, INC.
Filing Date: 2025-07-11
Form: PREM14A
Chunk 86
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 completion of the Merger, which require Cantaloupe to operate the business only in the ordinary course of business and, generally, consistent with past practice, and that subject the operations of the business to other restrictions, which could delay or prevent Cantaloupe from undertaking business opportunities, including the acquisition of businesses and entering into certain material contracts, that may arise prior to the completion of the Merger and that may have an adverse effect on Cantaloupe’s ability to respond to changing market and business conditions in a timely manner or at all. |

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TABLE OF CONTENTS

| • | Restrictions on Soliciting Proposals; Termination Fee. The restrictions in the Merger Agreement on the solicitation of competing proposals and the requirement, under the Merger Agreement, that Cantaloupe pay, if the Merger Agreement is terminated in certain circumstances, a termination fee of $31.5 million, which fee may deter third parties from making a competing offer for Cantaloupe prior to the consummation of the Merger. The Board believes these and other restrictions do not preclude another potential acquiror from submitting a proposal to acquire Cantaloupe, and considered that the Merger Agreement includes exceptions to permit the Board to comply with its fiduciary duties. The Board also recognized that the provisions in the Merger Agreement relating to the termination fee were required by 365 as a condition to entering into the Merger Agreement. |

| • | Financing May Not Be Obtained. The possibility that the Debt Financing contemplated by the Debt Commitment Letter will not be obtained prior to the End Date or the date of expiration or termination of the Lender Parties’ commitments under the Debt Commitment Letter, or obtained at all, resulting in 365 not having sufficient funds to complete the Merger notwithstanding the absence of a financing condition in the Merger Agreement. |

| • | Taxable Merger Consideration.The fact that the receipt of the merger consideration by Cantaloupe’s shareholders will generally be taxable to Cantaloupe’s shareholders for United States federal income tax purposes. The Board believed that this was mitigated by the fact that the entire merger consideration would be cash, providing adequate cash for the payment of any taxes due. |

| • | Potential Future Share Price. The possibility that, although the Merger provides Cantaloupe’s shareholders with the opportunity to realize a premium to the price at which shares of common stock traded prior to the public announcement of the Merger, the price of shares of common