Company: TRUE
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001327318-25-000065
Chunk: 81

Company: TrueCar, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part II, Item 1A
Chunk 81
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 materially and adversely affect our business, our financial condition and our results of operations and prospects.

The Merger Agreement contains provisions that limit our ability to pursue alternatives to the Merger and may discourage other third parties from offering a favorable alternative transaction proposal.

Pursuant to the terms of the Merger Agreement, the Company and its representatives have a period of 30 days following the execution of the Merger Agreement and ending at 11:59 p.m. Pacific Time on November 13, 2025, which we refer to as the “go-shop” period, during which we may, among other things, solicit a competing acquisition proposal from any third party that is not a “No-Shop Party” (as defined in the Merger Agreement), subject to certain requirements set forth in the Merger Agreement. 

We cannot guarantee that any person will submit a “Superior Proposal” (as defined in the Merger Agreement) prior to the expiration of the “go-shop” period. Following the “go-shop” period, in accordance with the Merger Agreement and subject to certain exceptions therein, we are restricted from soliciting, initiating, proposing or encouraging or facilitating alternative acquisition proposals from third parties and/or, providing non-public information to third parties in response to any inquiries regarding, or the submission of any proposal or offer that constitutes, or would reasonably be expected to lead to, any Acquisition Proposal (as defined in the Merger Agreement). Upon termination of the Merger Agreement under certain specified circumstances, including in connection with our acceptance of a Superior Proposal, we will be required to pay Parent a termination fee of either $4.0 million or $8.0 million. These provisions could discourage a third party that may have an interest in acquiring all or a significant part of our business from considering or proposing that acquisition, even if such third party were prepared to pay consideration with a higher value than the value of the consideration in the Merger. If the Merger Agreement is terminated and if we decide to seek another business combination, we may not be able to negotiate or consummate a transaction with another party on terms comparable to, or better than, the terms of the Merger Agreement.

While the Merger Agreement is in effect, we are subject to certain interim covenants.

The Merger Agreement generally requires us to operate our business in the ordinary course, subject to certain exceptions, including as required by applicable law, pending consummation of the Merger, and subjects us to customary interim operating covenants that restrict us, without Parent