Company: TRUE
Filing Date: 2025-11-13
Form Type: PREM14A
Source: 0001104659-25-111498
Chunk: 75

Company: TrueCar, Inc.
Filing Date: 2025-11-13
Form: PREM14A
Chunk 75
---
 Stockholder C’s perspective on the Company’s results and share price valuation. During these discussions, Stockholder C encouraged the Company to engage in a strategic review process.

On March 10, 2025, Perkins provided an updated draft of the Merger Agreement to Alston, providing for the substitution of restricted stock units held by employees below the senior vice president level. The draft Merger Agreement further provided for a $20 million termination fee payable by the Company if it terminated the Merger Agreement in order to accept a financially superior proposal from a third party, among other customary triggers. The draft Merger Agreement also provided that the Company’s remedies in the event that Fair failed to complete the Merger when required to do so would not include the ability to seek specific performance of Fair’s obligation to complete the Merger, but would be limited to a $10 million reverse termination fee, with no indication of the source of funds with which such fee would be paid.

On March 12, 2025, the Transaction Committee met and Mr. Reigersman provided an update regarding the latest draft of the Merger Agreement received from Fair.

On March 13, 2025, representatives of Fair, including Mr. Painter, B. Riley, and Perkins met with the Company’s management, Morgan Stanley and Alston by video conference. Mr. Painter shared perspectives regarding the Company’s valuation as a result of deterioration in the Company’s business, the need to obtain support from Company Stockholders and reduce execution risk, and the maximum valuation that Fair’s potential equity financing sources would support. Mr. Painter discussed a range of valuations between $2.90 and $4.00, but did not indicate specifically a revised per share price as compared to Fair’s latest proposal of $4.63 per share. Mr. Painter further indicated that potential equity financing sources were prepared to place a portion of the financing into escrow to support a reverse termination fee. The group also discussed aspects of Fair’s valuation methodology. Later on that date, Mr. Reigersman and Mr. Painter spoke again, with Mr. Reigersman reemphasizing the need to minimize any downward revision in Fair’s proposed price per share in order to obtain support from the Board and the Company Stockholders.

On March 18, 2025, Mr. Reigersman, Mr. Jeff Swart, the Company’s General Counsel, and Mr. Foley met by video conference with Mr. Painter, with representatives of Alston, Morgan Stanley, Perkins and B. Riley present