Company: TRUE
Filing Date: 2025-11-13
Form Type: PREM14A
Source: 0001104659-25-111498
Chunk: 99

Company: TrueCar, Inc.
Filing Date: 2025-11-13
Form: PREM14A
Chunk 99
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 of the Merger).

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The belief of the Board of Directors, after a review of TrueCar’s current and historical financial condition, results of operations, prospects, business strategy, competitive position and macroeconomic factors, including the potential impact (which cannot be quantified) of those factors on the trading price of Common Stock, that the proposed consideration is more favorable to TrueCar Stockholders, on a risk adjusted basis, than the likely value that might have resulted from other alternatives available to TrueCar, including remaining a standalone public company, and that the Merger represents the best available alternative for maximizing value for TrueCar Stockholders, considering:

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the challenges and risks that TrueCar has faced, and would likely continue to face, if it remained a public company, including, among others, the highly competitive nature of the industry in which TrueCar operates and the ability of TrueCar to execute on its long-term strategies;

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the risks, challenges and cost of initiatives to achieve organic growth, including through new product development, or growth through acquisitions, and of sustaining consistent profitability and positive free cash flow with TrueCar’s current business model;

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the impact of macroeconomic factors on the automotive retail landscape, including the impact of tariff policies and fluctuations in the supply of new and used cars;

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ongoing changes in the automotive retail landscape, which increase the risk to TrueCar of successfully executing its business plan;

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the limited trading volume and public float of the Common Stock and the overhang effect upon the trading price of the Common Stock that results from the concentration of ownership of the Common Stock, including (i) the Caledonia stockholders’ approximately 21.1% ownership stake in TrueCar and (ii) the aggregate 31.7% ownership stake held by certain other stockholders, each individually holding more than a 5% ownership stake in TrueCar;

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the volatility in trading price of Common Stock, which has at times been uncorrelated with TrueCar’s financial performance;

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the significant impact of generative artificial intelligence on the future of ecommerce and lead-generating efforts, as artificial intelligence technologies become increasingly important for consumers buying and selling goods online;

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the costs and burdens associated with being a public company and general market risks; and

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the other risks and uncertainties discussed under the heading “Risk Factors” in TrueCar’s most recently filed Annual Report on Form 10-K and its subsequent Quarterly Reports on Form 10-Q.

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The process undertaken by the Board, with the assistance of TrueCar’s senior management, Morgan Stanley