Company: WELNF
Filing Date: 2025-11-12
Form Type: DEFM14A
Source: 0001104659-25-109577
Chunk: 274

Company: Integrated Wellness Acquisition Corp
Filing Date: 2025-11-12
Form: DEFM14A
Chunk 274
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” structure. A double dummy merger is a transaction structure that is intended to qualify as tax free under Section 351 of the Internal Revenue Code. In a double dummy transaction, a new holding company is formed and the holding company then forms two wholly owned “dummy” subsidiaries, entities that are formed solely to facilitate the transaction. One subsidiary of the holding company merges with and into the target company, with the target company surviving the merger, while the second subsidiary merges with and into the acquiror, with the buyer surviving the other merger, and as a result the two mergers, the acquiror and the target company both become wholly owned subsidiaries of the new holding company. One benefit of using a double dummy structure is that Pubco will be considered a new issuer and registrant which may facilitate meeting certain stock exchange initial listing requirements in the event that IWAC would be delisted due to the passing of 36 months since its IPO.

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TABLE OF CONTENTS

On July 26, 2024, EGS delivered the initial draft of the Business Combination Agreement to NMRS. The Business Combination Agreement amended and restated the Original Business Combination Agreement to reflect a “double dummy” transaction structure, however, none of the material economic terms of the transaction or the representations and warranties of the parties were changed. On July 28, 2024, NMRS delivered to EGS a revised draft of the Business Combination Agreement.

Between July 28, 2024 and August 26, 2024, the parties exchanged several drafts of the Business Combination Agreement. The only material change in the draft between July 28 and August 26, 2024 was to insert a guarantee provision for IWAC, pursuant to which IWAC agreed that (i) it would cause Pubco and each Merger Sub to satisfy their respective covenants, agreements and obligations under the Business Combination Agreement, (ii) it would guarantee the performance of Pubco and the Merger Subs under the Business Combination Agreement and (iii) it would be liable for the breach of any representation, warranty, covenant or obligation of Pubco and each Merger Sub. On August 12, 2024, Mentor provided an updated fairness opinion to reflect the structure change of the transaction (though maintaining the valuation and the substance of the initial fairness opinion). The Business Combination Agreement was executed by the parties on August 26, 2024.

Recommendation of the Board and Reasons for the Business Combination

The IWAC Board