Company: TRUE
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001327318-25-000065
Chunk: 221

Company: TrueCar, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 221
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idiary”). Upon the terms and subject to the conditions set forth in the Merger Agreement, Merger Subsidiary will merge with and into the Company (the “Merger”), with the Company surviving the Merger as a wholly-owned subsidiary of Parent. At the effective time of the Merger (the “Effective Time”), each issued and outstanding share of the Company’s common stock (other than any shares held by stockholders of the Company that may enter into rollover and contribution agreements with Parent prior to the Effective Time (“Rollover Shares”), shares held by stockholders of the Company who are entitled to demand and who have properly demanded appraisal of such shares in accordance with Section 262 of the Delaware General Corporation Law (“Dissenting Shares”), and shares of the Company’s common stock held by the Company, Parent or any of their respective subsidiaries) will be cancelled and converted into the right to receive $2.55 in cash without interest and subject to any applicable withholding taxes.The Company has agreed to various customary covenants and agreements, including, among others, agreements to conduct its business in the ordinary course during the period between the execution of the Merger Agreement and the Effective Time. The Merger Agreement contains certain termination rights, including that the Merger Agreement may be terminated (i) by either party if the Merger is not completed on or before February 28, 2026 or (ii) by mutual written consent, among others. Upon termination of the Merger Agreement under certain specified circumstances, Parent may be required to pay the Company a termination fee equal to $15.0 million. Upon termination of the Merger Agreement under other specified circumstances, the Company may be required to pay Parent a termination fee equal to either $4.0 million or $8.0 million, or may be required to reimburse certain costs and fees incurred by Parent and its affiliates, up to a maximum amount of $3.0 million.Although the Merger Agreement provides that the Company may specifically enforce Parent and Merger Subsidiary’s obligations under the Merger Agreement, the Company can only pursue specific performance to cause Parent and Merger Subsidiary to consummate the Merger if certain conditions are satisfied, including, among other things, that Parent receive additional debt or equity commitment letters from investors, other than Alpha Auto 2, LLC (the “Investor”) and its affiliates in an aggregate amount of $60.0 million. The consummation of the Merger remains subject to customary