Company: ABTC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076632
Chunk: 77

Company: American Bitcoin Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 8
Chunk 77
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 or modifies its recommendation regarding the Proposals. Before the
Gryphon Board may change its recommendation to stockholders to vote in favor of the Proposals, Gryphon must, among other things,
provide ABTC with notice and negotiation rights. Upon the termination of the ABTC Merger Agreement in certain circumstances,
including in connection with a Gryphon Recommendation Change in response to a Superior Proposal, Gryphon may be required to pay up
to $5,000,000 as a termination fee, in addition to the out-of-pocket fees and expenses incurred by or on behalf of ABTC in
connection with the transactions contemplated by the ABTC Merger Agreement.

These provisions could discourage a potential
third party acquiror from considering or proposing an acquisition transaction, even if it were prepared to pay a higher price than what
would be received in the Mergers. These provisions might also result in a potential third party acquiror proposing to pay a lower price
than it might otherwise have proposed to pay because of the added expense of the $5,000,000 termination fee and additional ABTC fees and
expenses that may become payable.

If the ABTC Merger Agreement is terminated and Gryphon determines to
seek another business combination, Gryphon may not be able to negotiate a transaction with another party on terms comparable to or better
than, the terms of the ABTC Merger Agreement or at all.

Furthermore, as noted above, certain Gryphon securityholders holding
an aggregate of approximately 19.29% of the outstanding voting securities of Gryphon as of May 9, 2025 have entered into support agreements.
These Gryphon securityholders also agreed to vote against any Gryphon Acquisition Proposal (as defined in the ABTC Merger Agreement) or
any other proposal with respect to Gryphon that is in opposition to or in competition with, the Mergers. As a result, the support agreements
may discourage other parties from attempting to engage in a transaction with Gryphon, even if those parties would otherwise be willing
to offer greater value to Gryphon stockholders than that offered by ABTC under the Mergers.

Gryphon will be subject to certain contractual
restrictions while the Mergers are pending.

The ABTC Merger Agreement restricts Gryphon from making certain acquisitions
and divestitures, entering into certain contracts, incurring certain indebtedness and expenditures, paying dividends, repurchasing or,
with respect to Gryphon, issuing equity securities outside certain limited exceptions and taking other