Company: MFON
Filing Date: 2025-08-01
Form Type: PRE 14A
Source: 0001140361-25-028385
Chunk: 39

Company: MOBIVITY HOLDINGS CORP.
Filing Date: 2025-08-01
Form: PRE 14A
Chunk 39
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000 shares in any one account to liquidate their holdings, without incurring brokerage costs.

Limited Liquidity for the Company’s Common Stock . The Special Committee noted that the trading volume in our common stock has been, and continues to be, extremely limited. The average daily trading volume of the stock from January 1, 2025, to June 30, 2025 (the trading day prior to the announcement of the approval of the Reverse Stock Split by the Company) was approximately 2,838 shares per day, and during that period there were 122 trading days on which our common stock did not trade at all. Accordingly, the Reverse Stock Split provides a substantial number of our record holders and beneficial holders with the opportunity to obtain cash for their shares in a relatively limited trading market and at a premium over the closing price of our common stock at the time of our announcement of the Reverse Stock Split.

Historical Prices . With respect to the Cash Payment, the Special Committee relied upon, among other things, the determination of the range of fair values per pre-split share. The Special Committee determined that $0.29 per pre-split share would fair based on historical trading ranges.

Future Cost and Time Savings . By eliminating costs associated with our public reporting and other related obligations, the Company ultimately expects to realize recurring annual cost savings of approximately $1,000,000 which would include reduced costs of an annual financial statement audit by a public accounting firm, given the reduced scope as a result of no longer being subject to SEC reporting requirements. In addition, the Special Committee noted that the Company would eliminate the substantial time and effort currently spent by the Company’s management and employees to prepare and review the reports it files with the SEC under the Exchange Act and the Sarbanes-Oxley Act, and after the Reverse Stock Split, management and our other employees will be able to reallocate this time and effort to other areas of our businesses and operations.

The Special Committee determined that certain additional factors supported the fairness of the Reverse Stock Split to those unaffiliated Cashed Out Stockholders, including the fact that they will not pay the brokerage commissions they would have paid if they attempted to sell their shares in the open market. The proposed transaction price of $0.29 per pre-split share of our common stock compares favorably to the average closing price of our stock for the previous 30, 60, 90 and 180 trading days prior to July 30, 2025, the day prior to the Special Committee’s approval of the Reverse Stock