# EDGAR Filing Document

**Accession Number:** 0001785424
**File Stem:** 0001628280-23-003235
**Filing Date:** 2023-2
**Character Count:** 43381
**Document Hash:** 5cd63fdcdd675c129e38e49887dc349b
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001628280-23-003235.hdr.sgml**: 20230213

**ACCESSION NUMBER**: 0001628280-23-003235

**CONFORMED SUBMISSION TYPE**: 424B3

**PUBLIC DOCUMENT COUNT**: 2

**FILED AS OF DATE**: 20230213

**DATE AS OF CHANGE**: 20230213

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Katapult Holdings, Inc.
- **CENTRAL INDEX KEY:** 0001785424
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-EQUIPMENT RENTAL & LEASING, NEC [7359]
- **IRS NUMBER:** 842704291
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 424B3
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-257583
- **FILM NUMBER:** 23615035

**BUSINESS ADDRESS:**
- **STREET 1:** 1345 AVENUE OF THE AMERICAS 11TH FL
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10105
- **BUSINESS PHONE:** 2123701300

**MAIL ADDRESS:**
- **STREET 1:** 1345 AVENUE OF THE AMERICAS 11TH FL
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10105

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** FinServ Acquisition Corp.
- **DATE OF NAME CHANGE:** 20190814

**Filed Pursuant to Rule 424(b)(3)** 

**Registration No. 333-257583** 

**Prospectus Supplement No. 5**

**(To Prospectus Dated April 14, 2022)**

![image_0a.jpg](image_0a.jpg)

**57,071,540 Shares of Common Stock** 

**Up to 12,832,500 Shares of Common Stock Issuable Upon Exercise of the Warrants** 

**Up to 332,500 Warrants**

This prospectus supplement updates, amends and supplements the prospectus dated April 14, 2022 (as supplemented or amended from time to time, the "Prospectus"), which forms a part of our Registration Statement on Form S-1, as amended (Registration No. 333-257583).

This prospectus supplement is being filed to update, amend and supplement the information in the Prospectus with the information contained in our Current Report on Form 8-K filed with the Securities and Exchange Commission on February 13, 2023 (the "Current Report"). Accordingly, we have attached the Current Report to this prospectus supplement.

The Prospectus and this prospectus supplement relate to the offer and sale from time to time by the Selling Securityholders named in the Prospectus (the "Selling Securityholders") of (i) up to 57,071,540 shares of our common stock, par value $0.0001 per share ("Common Stock") and (ii) up to 332,500 warrants (the "Private Placement Warrants") originally issued in a private placement in connection with the initial public offering (an "IPO") of FinServ Acquisition Corp. ("FinServ").

The Prospectus and this prospectus supplement also relate to the issuance by us of up to an aggregate of 12,832,500 shares of our Common Stock which consists of (i) 332,500 shares of Common Stock that are issuable upon the exercise of the Private Placement Warrants and (ii) 12,500,000 shares of Common Stock that are issuable upon the exercise of 12,500,000 warrants (the "Public Warrants" and, together with the Private Placement Warrants, the "Warrants") originally issued in the IPO of FinServ.

You should read this prospectus supplement in conjunction with the Prospectus, including any amendments or supplements to it. This prospectus supplement is qualified by reference to the Prospectus, except to the extent that the information provided by this prospectus supplement supersedes information contained in the Prospectus. This prospectus supplement is not complete without, and may not be delivered or used except in conjunction with, the Prospectus, including any amendments or supplements to it.

Our Common Stock and our Public Warrants are listed on the Nasdaq Capital Market, under the symbols "KPLT" and "KPLTW," respectively. On February 10, 2023, the closing price of our Common Stock was $0.96 and the closing price for our Public Warrants was $0.11.

**We are an "emerging growth company" under federal securities laws and are subject to reduced public company reporting requirements. Investing in our securities involves a high degree of risks. See the section entitled "Risk Factors" beginning on page 9 of the Prospectus, and under similar headings in any amendments or supplements to the Prospectus.** 

**Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.**

The date of this prospectus is February 13, 2023.

&nbsp;&nbsp;&nbsp;&nbsp;

------

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported): **February 13, 2023**

---

| |
|:---|
| **KATAPULT HOLDINGS, INC.** |
| (Exact name of registrant as specified in its charter) |

---

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-39116** | **81-4424170** |
| (State or other jurisdiction<br>of incorporation) | (Commission File Number) | (IRS Employer<br>Identification No.) |

---

---

| | |
|:---|:---|
| **5204 Tennyson Parkway, Suite 500<br>Plano, TX** | **75024** |
| (Address of principal executive offices) | (Zip Code) |

---

---

| |
|:---|
| **(833) 528-2785**  |
| (Registrant's telephone number, including area code:) |

---

---

| |
|:---|
| **Not Applicable** |
| (Former name or former address, if changed since last report) |

---

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (*see* General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of Each Class** | **Trading Symbol(s)** | **Name of Each Exchange on<br>Which Registered** |
| Common Stock, par value $0.0001 per share | KPLT | The Nasdaq Stock Market LLC |
| Redeemable Warrants | KPLTW | The Nasdaq Stock Market LLC |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

&nbsp;&nbsp;&nbsp;&nbsp;

------

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

**Item 8.01 Other Events.**

**205 Petition – Notice of Hearing and Relief Sought**

As Katapult Holdings, Inc. (the "Company") previously announced on its Form 8-K dated February 10, 2023, the Company filed a petition on February 10, 2023 in the Court of Chancery of the State of Delaware (the "Court of Chancery") under Section 205 of the DGCL (as defined below) (the "Petition") seeking: (i) the validation of the stockholder vote approving the Charter Amendment Proposal (as defined below) and (ii) the validation and declaration of effectiveness of (a) the New Charter (as defined below) (including its filing and effectiveness, in each case as of June 9, 2021) and (b) the securities issued or to be issued in reliance on the approval of the Charter Amendment Proposal and/or the validity of the New Charter, as of the respective dates of their issuance.

A copy of the Petition in the form filed with the Court of Chancery is attached hereto as Exhibit 99.1 and is also available at ir.katapultholdings.com. Concurrently with the Petition, the Company filed a motion to expedite the hearing on the Petition.

On February 10, 2023, the Court of Chancery granted the motion to expedite and set a hearing date for the Petition to be heard. The hearing has been set for February 27, 2023 at 1:30 p.m. Eastern Time at the Leonard L. Williams Justice Center, 500 North King Street, Wilmington, Delaware 19801.

This Form 8-K constitutes notice of the hearing. If any stockholder of the Company wishes to express a position on the Petition, such stockholders of the Company may (i) appear at the hearing or (ii) file a written submission with the Register in Chancery, Leonard L. Williams Justice Center, 500 North King Street, Wilmington, Delaware 19801, referring to the case caption, In re Katapult Holdings, Inc., C.A. No. 2023-0161-LWW (Del. Ch.), in advance of the hearing, and any such written submission should be emailed to the Company's counsel, Kevin Coen, Morris, Nichols, Arsht & Tunnell LLP at kcoen@morrisnichols.com.

The information that may be obtained solely through the websites referenced in this report is not incorporated by reference herein.

**Background**

On June 7, 2021, Katapult Holdings, Inc. (the "Company"), then operating under the name FinServ Acquisition Corp. ("FinServ"), held a virtual special meeting (the "Special Meeting") to approve certain matters relating to its proposed business combination transaction (the "Business Combination") with the entity formerly known as Katapult Holdings, Inc. (formerly known as Cognical Holdings, Inc.), a Delaware corporation. One of these matters was a proposal to amend and restate FinServ's certificate of incorporation (the "Charter Amendment Proposal").

At the Special Meeting, FinServ's stockholders approved all proposals relating to the Business Combination, including the Charter Amendment Proposal, which was approved by a majority of the outstanding shares of Class A common stock and Class B common stock, voting as a single class. On June 9, 2021, the parties closed the Business Combination and the Company's certificate of incorporation, as amended to give effect to the Charter Amendment Proposal (the "New Charter"), became effective.

Due in part to a recent ruling by the Delaware Court of Chancery, there is uncertainty as to whether Section 242(b)(2) of the Delaware General Corporation Law (the "DGCL") would have required the Charter Amendment Proposal to obtain separate votes of the Class A common stock and Class B common stock.

**Item 9.01 Financial Statements and Exhibits.**

(d) Exhibits:

The following exhibits are included with this Current Report on Form 8-K:

&nbsp;&nbsp;&nbsp;&nbsp;

------

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 99.1 | Petition of Katapult Holdings, Inc. Pursuant to 8 Del. C. § 205. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |

---

&nbsp;&nbsp;&nbsp;&nbsp;

------

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
| Date: | February 13, 2023 | /s/ Orlando Zayas | |
| | | Name: | Orlando Zayas |
| | | Title: | Chief Executive Officer |

---

&nbsp;&nbsp;&nbsp;&nbsp;

------

**EX.99.1**

IN THE COURT OF CHANCERY FOR THE STATE OF DELAWARE

<br>IN RE KATAPULT HOLDINGS, INC.))) <br>C.A. No. 2023-_____

**<u>VERIFIED PETITION FOR RELIEF UNDER 8</u> *<u>DEL. C.</u>* <u>§ 205</u>**

Petitioner Katapult Holdings, Inc. ("<u>Katapult</u>" or the "<u>Company</u>") brings this petition (the "<u>Petition</u>") for relief under Section 205 of the Delaware General Corporation Law (the "<u>DGCL</u>"):

**<u>NATURE OF THE ACTION</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The Company seeks to validate a Second Amended and Restated Certificate of Incorporation that it filed in Delaware on June 9, 2021 (the "<u>Charter</u>"), and to validate stock (and other securities convertible into or exercisable for stock) that the Company issued in reliance on the Charter. Ex. A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The Company was initially a special purpose acquisition company (the "<u>SPAC</u>") formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. It adopted the Charter in connection with a business combination, which resulted in the Company becoming the holding company of the Katapult business, which provides point-of-sale lease-purchase options to U.S. non-prime consumers through platform integrations with e-commerce platforms (the "<u>Business Combination</u>"). The Charter amended the

&nbsp;&nbsp;&nbsp;&nbsp;

------

predecessor certificate of incorporation (the "<u>Old Charter</u>"), including an increase to the total number of shares of Class A Common Stock authorized for issuance. Ex. B. Viewing its Class A Common Stock and Class B Common Stock as two series of the same class of stock, the Company (then under control of SPAC management) believed no class votes were required to adopt the Charter. The Company therefore only sought approval from the combined affirmative vote of a majority of the voting power of the Class A Common Stock and Class B Common Stock then outstanding, voting together as a single class.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.The Company's belief that a separate vote of the Class A and Class B Common Stock was not required has been called into question by the opinion in *Garfield v. Boxed, Inc.*<sup>1</sup> Applying *Boxed* to the Old Charter, it is possible that the Charter had to be approved by separate class votes of each of the Class A Common Stock and Class B Common Stock in addition to the vote sought and obtained by the Company in connection with the adoption of the Charter. The Company therefore needs to resolve any doubts about the validity of the Charter. In addition, given the way Section 161 of the DGCL calculates the number of shares available for issuance (which requires sufficient shares be available to cover both issued shares and shares reserved for issuance to satisfy the exercise or conversion, as applicable, of stock options, warrants or other convertible securitie

<sup>1</sup> &nbsp;&nbsp;&nbsp;&nbsp;2022 WL 17959766 (Del. Ch. Dec. 27, 2022).

vii

&nbsp;&nbsp;&nbsp;&nbsp;

------

s), a number of shares of Class A Common Stock and other securities that may be convertible into shares of Class A Common Stock may be placed under a cloud of uncertainty, even though the Company's current number of outstanding shares of common stock is less than the number of authorized shares in the Original Charter. The Company wishes to clarify the validity of these securities as well.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The Company respectfully submits that relief under Section 205 is warranted. The Charter was adopted a year and a half ago. The stockholders of a then-unrelated entity (which owned the Katapult business acquired by the Company) relied on the Charter's provisions when they decided to approve the Business Combination. They knew the Company needed additional Class A Common Stock to finance its operations as an early-stage, growing company. Recourse under Section 204 of the DGCL is not practicable because it could not be accomplished quickly enough to prevent potential irreparable harm to the Company and its stockholders. Among other things, the Company is scheduled to announce earnings on March 9, 2023 and it is in the best interests of the Company and its stockholders that the Company file the Company's Annual Report on Form 10-K (the "<u>Form 10-K</u>") in close proximity to the Company's scheduled earnings date, March 9, 2023. Moreover, if the Company is unable to issue its financial statements, due to the cloud of uncertainty regarding the number of authorized

viii

&nbsp;&nbsp;&nbsp;&nbsp;

------

shares under the Charter, and file the Form 10-K on or before March 31, 2023 or within the grace period provided by the rules and regulations of the U.S. Securities and Exchange Commission (the "<u>SEC</u>"), the Company will fail to meet the reporting requirements applicable to it under Section 13(a) of the Securities Exchange Act of 1934, as amended (the "<u>1934 Act</u>"), which would impair certain stockholders from trading in the Company's securities and would allow the SEC to suspend trading in the Company's stock and/or revoke the Company's registration under the 1934 Act. In addition, such a failure could constitute an event of default under the Company's credit facility and permit the lenders thereunder to declare all amounts due and payable immediately, among other remedies, which would be an existential threat to the Company. Accordingly, relief under Section 205 is the most timely and efficient, and perhaps only, recourse available to place the Company and its investors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The Company also respectfully requests a prompt final hearing regarding this Petition. These issues regarding the Charter come at a singularly inopportune time. The Company is scheduled to announce its earnings on March 9, 2023 and it is in the best interests of the Company and its stockholders that the Company file the Form 10-K in close proximity to the Company's scheduled earnings date, March 9, 2023; however, absent a prompt final hearing regarding this Petition, the Company would remain subject to the cloud over its Charter and

ix

&nbsp;&nbsp;&nbsp;&nbsp;

------

likely would be unable to issue its financial statements and file the Form 10-K in a timely manner.

**<u>BACKGROUND</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.*SPAC Formation.* The Company was incorporated on August 9, 2019 as a SPAC. The Company amended and restated its initial charter through a filing in Delaware on October 31, 2019.<sup>2</sup> The October 31, 2019 amended and restated charter is the "Old Charter" that was in effect at the time the Company sought stockholder approval of the current Charter at issue in this Petition. *See* Ex. B.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.*Business Combination*. The Company entered into the Business Combination with a third-party entity that owned the Katapult business operations ("<u>Private Katapult</u>"). The transaction structure was common for a so-called "de-SPAC." The Company's wholly-owned subsidiary was merged with and into Private Katapult, with Private Katapult surviving the merger as a wholly-owned subsidiary of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.*Charter Amendments.* At the same special meeting of Company stockholders called to approve the Business Combination, the Company's stockholders were asked to approve six proposals to amend the Old Charter (collectively, the "<u>Charter Proposals</u>"):

<sup>2</sup> &nbsp;&nbsp;&nbsp;&nbsp;The amendments are not material to this petition.

x

&nbsp;&nbsp;&nbsp;&nbsp;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;&nbsp;&nbsp;&nbsp;An amendment to increase the number of shares of stock that the Company was authorized to issue (the "<u>Authorized Share Proposal</u>"), which would (i) increase to 250 million (from 110 million) the authorized shares of Class A Common Stock; (ii) increase to 25 million (from 1 million) the authorized shares of Class B Common Stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;&nbsp;&nbsp;&nbsp;An amendment to eliminate the Class B Common Stock Classification and provide for a single class of common stock; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. &nbsp;&nbsp;&nbsp;&nbsp;An amendment to provide that the number of authorized shares of any class or classes of stock may be increased or decreased by affirmative vote of the holders of a majority of the voting powers of the stock entitle to vote in the election of directors, voting together as a single class (the "<u>Class Vote Opt-Out Proposal"</u>);<sup>3</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.&nbsp;&nbsp;&nbsp;&nbsp;An amendment to provide that amendments to the SPAC's waiver of corporate opportunities will be prospective only;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.&nbsp;&nbsp;&nbsp;&nbsp;An amendment to require the vote of 66.7% of the voting power of the stock entitled to vote in the election of directors, voting together as a single class, to amend the provisions the Charter relating to the powers, number, election, term, vacancies and removal of directors, the provisions regarding meetings of stockholders and the amendment provision of the proposed Charter; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f.&nbsp;&nbsp;&nbsp;&nbsp;An amendment to provide that the Court of Chancery will be the sole and exclusive forum for any action asserting an "internal affairs claim" under the DGCL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.*Voting Standard Disclosed to Stockholders.* The proxy materials transmitted to Company stockholders to solicit their approval of the Business Combination and the Charter Proposals stated that the Charter Proposals

<sup>3</sup> &nbsp;&nbsp;&nbsp;&nbsp;This is the only class vote that a corporation may eliminate via an opt out pursuant to Section 242(b)(2). The opt out must be provided "in the original certificate of incorporation, in any amendment thereto which created such class or classes of stock or which was adopted prior to the issuance of any shares of such class or classes of stock, or in any amendment thereto which was authorized by a resolution or resolutions adopted by the affirmative vote of the holders of a majority of such class or classes of stock." 8 *Del. C.* § 242(b)(2).

xi

&nbsp;&nbsp;&nbsp;&nbsp;

------

required approval by "the affirmative vote of the holders of a majority of the outstanding shares of common stock, voting together as a single class, and the affirmative vote of the holders of a majority of the Class B Common Stock then outstanding, voting separately as a single class."<sup>4</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.*Stockholder Adoption and Votes Obtained.* The Company stockholders voted on these matters at a special meeting held on June 7, 2021. Consistent with the voting standard described in the Proxy Statement, the Charter Proposals were approved by a majority of the shares of Class B Common Stock as well as by a majority of the shares of Class A Common Stock and Class B Common Stock voting together as single class. The proposal to increase the authorized shares of Class A Common Stock was approved by the holders of a majority of the Class A Common Stock outstanding, but the proxy materials did not condition the approval of that proposal on obtaining that approval as a separate class vote of the Class A Common Stock. The lack of disclosure causes potential uncertainty.<sup>5</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.*The Company responds to the Boxed ruling.* The Company's regular outside counsel reviewed the *Boxed* ruling, and the Company thereafter retained Delaware counsel to review the Company's Charter in light of the *Boxed* 

<sup>4</sup> &nbsp;&nbsp;&nbsp;&nbsp;Ex. C at ix.

<sup>5</sup> One of the other proposals (included in the Charter to implement a forum selection provision) was not approved by a majority of the Class A Common Stock.

xii

&nbsp;&nbsp;&nbsp;&nbsp;

------

ruling and to advise on potential remedial actions. The Old Charter resembled the charter at issue in *Boxed*, at least with respect to the provisions relevant to whether the Old Charter established two classes of stock for purposes of Section 242(b)(2) of the DGCL.<sup>6</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.Applying the *Boxed* decision, the Old Charter could be read to have designated the Class A Common Stock and Class B Common Stock as two separate classes. If that is the case, then the provisions related to the Authorized Share Proposal and the Class Vote Opt-Out Proposal required approval by the holders of Class A Common Stock, voting as a separate class. In addition, to the extent the other four Charter Proposals might be deemed to have adversely affected the rights, powers or preferences of the Class A Common Stock, a separate class vote of the Class A Common Stock would have been required to adopt those

<sup>6</sup> &nbsp;&nbsp;&nbsp;&nbsp;Section 4.1 of the Old Charter provided that "The total number of shares of all classes of capital stock . . . which the Corporation is authorized to issue is 111,000,000 shares, consisting of (a) 110,000,000 shares of common stock . . ., including (i) 100,000,000 shares of Class A Common Stock . . . and (ii) 10,000,000 shares of Class B Common Stock . . . , and (b) 1,000,000 shares of preferred stock…." The Court in *Boxed* read a similar sentence as creating two classes of Common Stock because they were designated as "Class A" and "Class B" respectively and were specifically assigned par values. Similar to *Boxed*, Section 4.1 of the Old Charter stands in contrast to Section 4.2, which expressly enables the Company to designate preferred stock in "one or more series."

xiii

&nbsp;&nbsp;&nbsp;&nbsp;

------

proposals as well.<sup>7</sup> Accordingly, the Company is seeking the validation of the Charter to remedy any defect that might have resulted from the failure to disclose that a separate class vote of the Class A Common Stock was required, if that vote was required by Section 242(b)(2) of the DGCL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.*Calculating the number of clearly valid shares.* If the Charter did not validly increase the number of shares of Class A Common Stock authorized for issuance, then (absent validation by this Court) the Company is limited to validly issuing only 100 million shares of Class A Common Stock (the maximum number fixed in the Old Charter). However, the Company's public filings have consistently disclosed since the Business Combination that the Company has the headroom to issue the additional shares of Class A Common Stock authorized by the Charter.

**<u>CONSIDERATIONS WARRANTING RELIEF UNDER SECTION 205</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.*Recourse Available to the Company.* The Company has considered its options to resolve the uncertainty resulting from the Charter. To

<sup>7</sup> &nbsp;&nbsp;&nbsp;&nbsp;The Class A Common Stock rights, powers and preferences (as authorized by Section 151 of the DGCL) did not change as a result of the adoption of the Charter. The new provisions clarified how the Class A Common Stock and Class B Common Stock would be treated together for certain transactions. Following the *Boxed* decision, the Company believes that only the changes effected by the Share Increase Proposal would have required separate approval by holders of the Class A Common Stock. However, given the limited number of cases interpreting what constitutes an adverse effect for purposes of Section 242(b)(2) of the DGCL, and because each Charter Proposal appears to have been cross-conditioned on the approval of the other Charter Proposals, the Company is seeking validation of the entire Charter.

xiv

&nbsp;&nbsp;&nbsp;&nbsp;

------

ratify the Charter pursuant to Section 204 of the DGCL, the Company would need to obtain approval from the holders of Common Stock currently outstanding. The Company, however, respectfully submits that relief under Section 204 in not practicable under the circumstances the Company is currently facing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.To obtain a stockholder vote pursuant to Section 204, the Company would need issue a proxy statement soliciting proxies in favor of the Section 204 ratification, which would likely take months.<sup>8</sup> During that time period, the Company would remain subject to the cloud over its Charter and likely would be unable to issue its financial statements and file the Form 10-K in a timely manner. If the Company is unable to issue its financial statements and file the Form 10-K on or before March 31, 2023 or within the grace period provided by SEC rules, the Company will fail to meet the reporting requirements applicable to it under Section 13(a) of the 1934 Act, which would impair certain stockholders from trading in the Company's securities and would allow the SEC to suspend trading in the Company's stock and/or revoke the Company's registration under the 1934

<sup>8</sup> Even if a stockholder vote for a Section 204 ratification is obtained, a certificate of validation must be filed in Delaware. The certificate of validation (if accepted by the Office of the Secretary of State of the State of Delaware) is effective upon filing. However, there is no guarantee as to when the Secretary of State will issue a certified copy of the validation (to acknowledge the filing has been accepted) and obtaining the certified copy can take several months based on recent filing practices. Third parties may not treat the Section 204 ratification as final (and may not be willing to rely on the Section 204 ratification) until the certified copy of the certificate of validation is issued. And, until the certified copy is provided, other charter and related filings cannot be filed with the Secretary of State and the Secretary of State will not issue a good standing certificate.

xv

&nbsp;&nbsp;&nbsp;&nbsp;

------

Act. In addition, such a failure could constitute an event of default under the Company's credit facility and permit the lenders thereunder to declare all amounts due and payable immediately, among other remedies, which would be an existential threat to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.*The Company and third parties have treated the Charter as valid.* The Private Katapult stockholders relied on the validity of the Charter because it set forth the terms of the securities that they received as a result of the Business Combination. These terms included the headroom to authorize up to 250 million shares of Common Stock. Since the Business Combination, the Company has issued additional shares of Common Stock and other securities convertible or exercisable for Common Stock:

---

| | | |
|:---|:---|:---|
| Date | Securities | Total Shares Issued or Issuable |
| Q2 2021 | Option award | 346603 |
| Q3 2021 | Restricted stock unit awards<br>Options exercised | 1981369<br>650756 |
| Q4 2021 | Restricted stock unit awards<br>Options exercised | 133793<br>99108 |
| Q1 2022 | Restricted stock unit awards<br>Options exercised  | 4537624<br>275435 |
| Q2 2022 | Restricted stock unit awards | 102043 |
| Q3 2022 | Options exercised | 8886 |
| Q4 2022 | Restricted stock unit awards<br>Options exercised | 332376<br>10882 |

---

xvi

&nbsp;&nbsp;&nbsp;&nbsp;

------

The Company and these security holders relied on the Charter, which authorized for issuance a sufficient number of shares of Common Stock to enable the Company to perform these transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.*Harm resulting from no Validation.* Several parties will be harmed if the Charter is not validated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;&nbsp;&nbsp;&nbsp;The stockholders of Private Katapult who received Common Stock will not have received stock with the attributes they bargained for in the Business Combination (including the ability to issue up to 250 million additional shares of Common Stock).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;&nbsp;&nbsp;&nbsp;As explained below, the Company must address the validity of its Charter to ensure that its Form 10-K is filed in a timely fashion. Otherwise the Company and investors may suffer the harm described in paragraph 19 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.*Harm resulting from Validation.* The Company is not aware of any harm that will result from the validation of the Charter. Far from harming anyone, the validation of the Charter will place the Company and its security holders in the position they have always thought they were in vis-à-vis the Charter and the Company's capitalization table. Indeed, unlike the other SPACs, the Company never received a single demand letter complaining about the proper stockholder vote necessary to approve any components of the Business Combination before it closed.<sup>9</sup>

<sup>9</sup> &nbsp;&nbsp;&nbsp;&nbsp;A lawsuit challenging, among other things, the proxy statement's disclosures was filed and remains pending before the Court.

xvii

&nbsp;&nbsp;&nbsp;&nbsp;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.*Need for Prompt Relief.* The Company also submits that prompt relief is required. Under Securities and Exchange Commission ("SEC") rules, the Company is required to file audited financial statements as part of the Form 10-K by March 31, 2023. Prior to issuing the Form 10-K, the Company needs to resolve any uncertainty as to capitalization. If the Company is unable to issue its financial statements and file the Form 10-K on or before March 31, 2023 or within the grace period provided by SEC rules, the Company will fail to meet the reporting requirements applicable to it under Section 13(a) of the 1934 Act, which would impair certain stockholders from trading in the Company's securities and would allow the SEC to suspend trading in the Company's stock and/or revoke the Company's registration under the 1934 Act. Moreover, if the Company delays the filing of its Form 10-K, it could constitute an event of default under the Company's credit facility and permit the lenders thereunder to declare all amounts due and payable immediately, among other remedies. Such events would be an existential threat to the Company's business. In addition, the Company intends to report its financial results to investors through an earnings release on March 9, 2023 consistent with past practice and had planned to file the Form 10-K on or around the same date, as it is in the best interests of the Company and its stockholders that the Company file the Company's Form 10-K in close proximity to the Company's scheduled earnings date. Accordingly, the Company respectfully

xviii

&nbsp;&nbsp;&nbsp;&nbsp;

------

requests prompt relief from the Court to avoid uncertainty for stockholders and therefore the market for the Company's securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.For all of these reasons, the Company respectfully requests the relief it seeks here pursuant to Section 205.

**<u>COUNT ONE</u>**

**(Validation of the Amendment Under 8 *Del. C.* § 205)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.The Company repeats and reiterates the allegations above as if set forth fully herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.Because of the potential defects described above, there is uncertainty as to the validity of the Charter and the shares of capital stock and securities convertible into or exercisable for capital stock thereunder, each of which is a potentially defective corporate act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.This Court has the authority under Section 205(a)(4) to determine the validity of any corporate act, which includes the filing and effectiveness of the Charter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.The Company effected the Charter with a good faith belief that it was validly approved by the stockholders of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.The Company has treated the Charter as valid, and has, among other things, issued securities in reliance thereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26.On information and belief, following the public disclosure of the voting results of the special meeting called to approve the Business

xix

&nbsp;&nbsp;&nbsp;&nbsp;

------

Combination and the filing of the Charter, market participants and other third parties, including purchasers of shares of Common Stock and other securityholders, have relied on the validity of the Charter, and no persons would be harmed by the validation thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.The Company and its stockholders will be irreparably harmed absent relief from this Court.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.The Company has no adequate remedy at law.

**<u>COUNT TWO</u>**

**(Validation of Issuances of Securities Under 8 *Del. C.* § 205)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29. The Company repeats and reiterates the allegations above as if set forth fully herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.Because of the potential defects described above, there is uncertainty as to the validity of the Charter and the shares of capital stock and securities convertible into or exercisable for capital stock thereunder, each of which is a potentially defective corporate act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31.This Court has the authority under Section 205(a)(4) to determine the validity of any "stock, rights or options to acquire stock."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32.As stated above, the Company has treated the Charter as valid, has issued securities in reliance thereon.

xx

&nbsp;&nbsp;&nbsp;&nbsp;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33.On information and belief, purchasers and recipients of the securities relied on the validity of such securities, and no persons would be harmed by the validation of the issuances thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34.The Company and its stockholders will be irreparably harmed absent relief from this Court.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35.The Company has no adequate remedy at law.

**<u>PRAYER FOR RELIEF</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREFORE, the Company respectfully requests that this Court enter a proposed Final Order Granting Relief Under 8 *Del. C.* § 205 in the form attached hereto:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Validating and declaring effective the Charter enacting the Charter Proposals, retroactive to the date of its filing with the Office of the Secretary of State of the State of Delaware on June 9, 2021, and all amendments effected thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Validating and declaring effective the securities (and the issuance of the securities) described herein and any other securities issued in reliance on the validity of the Charter; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Granting such other and further relief as this Court deems proper.

xxi

&nbsp;&nbsp;&nbsp;&nbsp;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MORRIS, NICHOLS, ARSHT <br>& TUNNELL LLP<br>*<u>/s/ Kevin M. Coen&nbsp;&nbsp;&nbsp;&nbsp;</u>*<br>Kevin M. Coen (#4775)<br>Sara Barry (#6703)<br>Evan D. Sweeney (#6930)<br>1201 N. Market Street<br>Wilmington, DE 19801<br>(302) 658-9200<br>*Attorneys for Petitioner Katapult Holdings, Inc.*<br>

February 10, 2023

xxii

&nbsp;&nbsp;&nbsp;&nbsp;