Company: ANY
Filing Date: 2025-11-18
Form Type: PRE 14A
Source: 0001591956-25-000018
Chunk: 14

Company: Sphere 3D Corp.
Filing Date: 2025-11-18
Form: PRE 14A
Chunk 14
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 shareholders on or prior to January 15, 2026, for the purpose of obtaining Shareholder Approval, with the recommendation of the Company’s Board of Directors that such proposals are approved.

The Company’s common shares are listed on Nasdaq and, as a result, the Company is subject to the Nasdaq listing standards set forth in Nasdaq’s Listing Rules. Although the Company is not required to obtain shareholder approval under Ontario law in connection with the issuance of its common shares in connection with the Inducement Agreement or exercise of the New Warrants, the Company is required under Nasdaq Listing Rule 5635(d) to seek shareholder approval of the proposed issuance of common shares in connection with the Inducement Agreement and issuance of the New Warrants.

Nasdaq Listing Rule 5635(d) generally requires shareholder approval prior to the issuance of common shares, or securities convertible into or exercisable for common shares, in any transaction or series of related transactions, if the common share to be issued (or into which the securities may be converted or exercised) is equal to 20% or more of the common shares outstanding or 20% or more of the voting power outstanding before the issuance at a price lower than (i) the Nasdaq Official Closing Price (as reflected on Nasdaq.com) immediately preceding the signing of the binding agreement; or (ii) the average Nasdaq Official Closing Price of the common shares (as reflected on Nasdaq.com) for the five trading days immediately preceding the signing of the binding agreement. This rule is designed to protect existing shareholders from excessive dilution without their consent.

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Potential Consequences if the Proposal is not Approved

The Company is not seeking the approval of its shareholders to authorize its entry into the Inducement Agreement or issue the New Warrants, as the Company has already entered into the Inducement Agreement and issued the New Warrants.

If the Company’s shareholders do not approve this Warrant Inducement Proposal, the Purchaser will be unable to exercise the New Warrants. In addition, if shareholders do not approve this Warrant Inducement Proposal, the Inducement Agreement requires the Company to call a meeting every 90 days thereafter to seek Shareholder Approval until the earlier of the date on which Shareholder Approval is obtained or the New Warrants are no longer outstanding, costing the Company time, effort, and money. Also, if shareholders do not approve this Warrant Inducement Proposal, it could strain the Company’s relationship with