Document:

Exhibit 4.6

 

 

RIGHTS AGREEMENT

 

This Rights Agreement
(this “Agreement”) is made as of ______, 2021 between Mana Capital Acquisition Corp., a Delaware corporation (the
“Company”), and Continental Stock Transfer & Trust Company, a New York corporation, with offices at 1 State Street, New
York, New York 10004 (the “Right Agent”).

 

WHEREAS, the Company
has received a firm commitment from Ladenburg Thalmann & Co., Inc. (the “Representative”), as representative of the underwriters,
to purchase up to an aggregate of 6,000,000 units, each unit (“Unit”) comprised of one share of common stock of the Company,
par value $.00001 (the “Common Stock”), one warrant to purchase one-half of one share of Common Stock, and one right to receive
one-seventh of one share of Common Stock (a “Public Right” or a “Right”) upon the happening of the triggering
event described herein, and in connection therewith, will issue and deliver up to an aggregate of 6,000,000 Public Rights (for the right
to receive an aggregate of 857,142 shares of Common Stock) upon consummation of such public offering (“Public Offering”);

  

WHEREAS, the Company
has filed with the Securities and Exchange Commission (the “SEC”) a Registration Statement on Form S-1, File No. 333-[●]
(“Registration Statement”), for the registration, under the Securities Act of 1933, as amended (“Act”) of, among
other securities, the Public Rights and the Common Stock issuable to the holders of the Public Rights;

 

WHEREAS, the Company
desires the Right Agent to act on behalf of the Company, and the Right Agent is willing to so act, in connection with the issuance, registration,
transfer and exchange of the Rights;

 

WHEREAS, the Company
desires to provide for the form and provisions of the Rights, the terms upon which they shall be issued, and the respective rights, limitation
of rights, and immunities of the Company, the Right Agent, and the holders of the Rights; and

 

WHEREAS, all acts and
things have been done and performed which are necessary to make the Rights, when executed on behalf of the Company and countersigned by
or on behalf of the Right Agent, as provided herein, the valid, binding and legal obligations of the Company, and to authorize the execution
and delivery of this Agreement.

 

NOW, THEREFORE, in consideration
of the mutual agreements herein contained, the parties hereto agree as follows:

 

	1.	Appointment of Right Agent. The Company hereby appoints the Right Agent to act as agent for the Company for the Rights, and the Right Agent hereby accepts such appointment and agrees to perform the same in accordance with the terms and conditions set forth in this Agreement.

 

	2.	Rights.

 

	 	2.1.	Form of Right. Each Right shall be issued in registered or book entry form, as requested by the Company or the holder of a Right. Any Rights issued in registered form shall be in substantially the form of Exhibit A hereto, the provisions of which are incorporated herein and shall be signed by, or bear the facsimile signature of, the Chairman of the Board or Chief Executive Officer and Treasurer, Secretary or Assistant Secretary of the Company and shall bear a facsimile of the Company’s seal, if any. In the event the person whose facsimile signature has been placed upon any Right shall have ceased to serve in the capacity in which such person signed the Right before such Right is issued, it may be issued with the same effect as if he or she had not ceased to be such at the date of issuance.

  

	 	2.2.	Effect of Countersignature. Unless and until countersigned by the Right Agent pursuant to this Agreement, a registered Right shall be invalid and of no effect and may not be exchanged for Common Stock.

 

 

    	  

    	 

    

 

	 	2.3.	Registration.

 

	 	2.3.1.	Right Register. The Right Agent shall maintain books (“Right Register”) for the registration of original issuance and the registration of transfer of the Rights. Upon the initial issuance of the Rights, the Right Agent shall issue and register the Rights in the names of the respective holders thereof in such denominations and otherwise in accordance with instructions delivered to the Right Agent by the Company.

 

	 	2.3.2.	Registered Holder. Prior to due presentment for registration of transfer of any Right, the Company and the Right Agent may deem and treat the person in whose name such Right shall be registered upon the Right Register (“registered holder”) as the absolute owner of such Right and of each Right represented thereby (notwithstanding any notation of ownership or other writing on the Right Certificate made by anyone other than the Company or the Right Agent), for the purpose of the exchange thereof, and for all other purposes, and neither the Company nor the Right Agent shall be affected by any notice to the contrary.

 

	 	2.4.	Detachability of Rights. The securities comprising the Units, including the Rights, will not be separately transferable until the ninetieth (90th) day after the date hereof unless the Representative informs the Company and the Right Agent of its decision to allow earlier separate trading, but in no event will separate trading of the securities comprising the Units begin until (i) the Company files a Current Report on Form 8-K which includes an audited balance sheet reflecting the receipt by the Company of the gross proceeds of the Public Offering and (ii) the Company issues a press release and files a Current Report on Form 8-K announcing when such separate trading shall begin.

 

	3.	Terms and Exchange of Rights.

 

	 	3.1.	Rights. Each Right shall entitle the holder thereof to receive one-seventh of one share of Common Stock upon the happening of the Exchange Event (described below). No additional consideration shall be paid by a holder of Rights in order to receive his, her or its shares of Common Stock upon the Exchange Event as the purchase price for such shares of Common Stock has been included in the purchase price for the Units. In no event will the Company be required to net cash settle the Rights or issue fractional shares of Common Stock. The provisions of this Section 3.1 may not be modified, amended or deleted without the prior written consent of the Representative.

 

	 	3.2.	Exchange Event. The Exchange Event shall be the Company’s consummation of an initial Business Combination (as defined in the Company’s Amended and Restated Certificate of Incorporation).

 

	 	3.3.	Exchange of Rights.

 

	 	3.3.1.	Issuance of Certificates. As soon as practicable upon the occurrence of the Exchange Event, the Company shall direct holders of the Rights to return their Rights Certificates to the Right Agent. If the Company is not the surviving entity in a Business Combination, the holder of Rights must affirmatively elect to such conversion. Upon receipt of a valid Rights Certificate, the Right Agent shall issue to the registered holder of such Right(s) a certificate or certificates for the number of full shares of Common Stock to which he, she or it is entitled, registered in such name or names as may be directed by him, her or it. Notwithstanding the foregoing, or any provision contained in this Agreement to the contrary, in no event will the Company be required to net cash settle the Rights. The Company shall not issue fractional shares upon exchange of Rights. At the time of the Exchange Event, the Company will instruct the Right Agent to round down to the nearest whole share of Common Stock or otherwise inform it how fractional shares will be addressed in accordance with Delaware law.

 

	 	3.3.2.	Valid Issuance. All shares of Common Stock issued upon an Exchange Event in conformity with this Agreement shall be validly issued, fully paid and nonassessable.

 

 

    	  

    	 

    

 

	 	3.3.3.	Date of Issuance. Each person in whose name any such certificate for shares of Common Stock is issued shall for all purposes be deemed to have become the holder of record of such shares on the date of the Exchange Event, irrespective of the date of delivery of such certificate.

 

	 	3.3.4.	Company Not Surviving Following Exchange Event. If the Exchange Event results in the Company not continuing as a publicly held reporting entity, the definitive agreement will provide for the holders of Rights to receive the same per share consideration as the holders of the Common Stock will receive in with the Exchange Event, for the number of shares such holder is entitled to pursuant to Section 3.1 above.

 

	 	3.4.	Duration of Rights. If an Exchange Event does not occur within the time period set forth in the Company’s Amended and Restated Certificate of Incorporation, as the same may be amended from time to time, the Rights shall expire and shall be worthless.

 

	4.	Transfer and Exchange of Rights.

 

	 	4.1.	Registration of Transfer. The Right Agent shall register the transfer, from time to time, of any outstanding Right upon the Right Register, upon surrender of such Right for transfer, properly endorsed with signatures properly guaranteed and accompanied by appropriate instructions for transfer. Upon any such transfer, a new Right representing an equal aggregate number of Rights shall be issued and the old Right shall be cancelled by the Right Agent.

 

	 	4.2.	Procedure for Surrender of Rights. Rights may be surrendered to the Right Agent, together with a written request for exchange or transfer, and thereupon the Right Agent shall issue in exchange therefor one or more new Rights as requested by the registered holder of the Rights so surrendered, representing an equal aggregate number of Rights; provided, however, that in the event that a Right surrendered for transfer bears a restrictive legend, the Right Agent shall not cancel such Right and issue new Rights in exchange therefor until the Right Agent has received an opinion of counsel for the Company stating that such transfer may be made and indicating whether the new Rights must also bear a restrictive legend.

 

	 	4.3.	Fractional Rights. The Right Agent shall not be required to effect any registration of transfer or exchange which will result in the issuance of a Right Certificate for a fraction of a Right.

 

	 	4.4.	Service Charges. There shall be a reasonable service charge paid to the Right Agent for any exchange or registration of transfer of Rights.

 

	 	4.5.	Right Execution and Countersignature. The Right Agent is hereby authorized to countersign and to deliver, in accordance with the terms of this Agreement, the Rights required to be issued pursuant to the provisions of this Section 4, and the Company, whenever required by the Right Agent, will supply the Right Agent with Rights duly executed on behalf of the Company for such purpose.

 

	5.	Other Provisions Relating to Rights of Holders of Rights.

 

	 	5.1.	
    No Rights as Shareholder. Until exchange
    of a Right for shares of Common Stock as provided for herein, a Right does not entitle the registered holder thereof to any of the rights
    of a shareholder of the Company, including, without limitation, the right to receive dividends, or other distributions, exercise any preemptive
    rights to vote or to consent or to receive notice as shareholders in respect of the meetings of shareholders or the election of directors
    of the Company or any other matter.

     

     

	 	5.2.	Lost, Stolen, Mutilated, or Destroyed Rights. If any Right is lost, stolen, mutilated, or destroyed, the Company and the Right Agent may on such terms as to indemnity or otherwise as they may in their discretion impose (which shall, in the case of a mutilated Right, include the surrender thereof), issue a new Right of like denomination, tenor, and date as the Right so lost, stolen, mutilated, or destroyed. Any such new Right shall constitute a substitute contractual obligation of the Company, whether or not the allegedly lost, stolen, mutilated, or destroyed Right shall be at any time enforceable by anyone.

  

 

    	  

    	 

    

 

	 	5.3.	Reservation of Common Stock. The Company shall at all times reserve and keep available a number of its authorized but unissued shares of Common Stock that will be sufficient to permit the exchange of all outstanding Rights issued pursuant to this Agreement.

 

	6.	Concerning the Right Agent and Other Matters.

 

	 	6.1.	Payment of Taxes. The Company will from time to time promptly pay all taxes and charges that may be imposed upon the Company or the Right Agent in respect of the issuance or delivery of shares of Common Stock upon the exchange of Rights, but the Company shall not be obligated to pay any transfer taxes in respect of the Rights or such shares.

 

	 	6.2.	Resignation, Consolidation, or Merger of Right Agent.

 

	 	6.2.1.	Appointment of Successor Right Agent. The Right Agent, or any successor to it hereafter appointed, may resign its duties and be discharged from all further duties and liabilities hereunder after giving sixty (60) days’ notice in writing to the Company. If the office of the Right Agent becomes vacant by resignation or incapacity to act or otherwise, the Company shall appoint in writing a successor Right Agent in place of the Right Agent. If the Company shall fail to make such appointment within a period of 30 days after it has been notified in writing of such resignation or incapacity by the Right Agent or by the holder of the Right (who shall, with such notice, submit his, her or its Right for inspection by the Company), then the holder of any Right may apply to the Supreme Court of the State of New York for the County of New York for the appointment of a successor Right Agent at the Company’s cost. Any successor Right Agent, whether appointed by the Company or by such court, shall be a corporation organized and existing under the laws of the State of New York, in good standing and having its principal office in the Borough of Manhattan, City and State of New York, and authorized under such laws to exercise corporate trust powers and subject to supervision or examination by federal or state authority. After appointment, any successor Right Agent shall be vested with all the authority, powers, rights, immunities, duties, and obligations of its predecessor Right Agent with like effect as if originally named as Right Agent hereunder, without any further act or deed; but if for any reason it becomes necessary or appropriate, the predecessor Right Agent shall execute and deliver, at the expense of the Company, an instrument transferring to such successor Right Agent all the authority, powers, and rights of such predecessor Right Agent hereunder; and upon request of any successor Right Agent the Company shall make, execute, acknowledge, and deliver any and all instruments in writing for more fully and effectually vesting in and confirming to such successor Right Agent all such authority, powers, rights, immunities, duties, and obligations.

 

	 	6.2.2.	Notice of Successor Right Agent. In the event a successor Right Agent shall be appointed, the Company shall give notice thereof to the predecessor Right Agent and the transfer agent for the shares of Common Stock not later than the effective date of any such appointment.

 

	 	6.2.3.	Merger or Consolidation of Right Agent. Any corporation into which the Right Agent may be merged or with which it may be consolidated or any corporation resulting from any merger or consolidation to which the Right Agent shall be a party shall be the successor Right Agent under this Agreement without any further act.

 

    	  

    	 

    

 

	 	6.3.	Fees and Expenses of Right Agent.

 

	 	6.3.1.	Remuneration. The Company agrees to pay the Right Agent reasonable remuneration for its services as such Right Agent hereunder and will reimburse the Right Agent upon demand for all expenditures that the Right Agent may reasonably incur in the execution of its duties hereunder.

 

	 	6.3.2.	Further Assurances. The Company agrees to perform, execute, acknowledge, and deliver or cause to be performed, executed, acknowledged, and delivered all such further and other acts, instruments, and assurances as may reasonably be required by the Right Agent for the carrying out or performing of the provisions of this Agreement.

 

	 	6.4.	Liability of Right Agent.

 

	 	6.4.1.	Reliance on Company Statement. Whenever in the performance of its duties under this Agreement, the Right Agent shall deem it necessary or desirable that any fact or matter be proved or established by the Company prior to taking or suffering any action hereunder, such fact or matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively proved and established by a statement signed by the Chief Executive Officer or Chief Financial Officer and delivered to the Right Agent. The Right Agent may rely upon such statement for any action taken or suffered in good faith by it pursuant to the provisions of this Agreement.

 

	 	6.4.2.	Indemnity. The Right Agent shall be liable hereunder only for its own gross negligence, willful misconduct or bad faith. The Company agrees to indemnify the Right Agent and save it harmless against any and all liabilities, including judgments, costs and reasonable counsel fees, for anything done or omitted by the Right Agent in the execution of this Agreement except as a result of the Right Agent’s gross negligence, willful misconduct, or bad faith.

 

	 	6.4.3.	Exclusions. The Right Agent shall have no responsibility with respect to the validity of this Agreement or with respect to the validity or execution of any Right (except its countersignature thereof); nor shall it be responsible for any breach by the Company of any covenant or condition contained in this Agreement or in any Right; nor shall it by any act hereunder be deemed to make any representation or warranty as to the authorization or reservation of any shares of Common Stock to be issued pursuant to this Agreement or any Right or as to whether any shares of Common Stock will, when issued, be valid and fully paid and nonassessable.

 

	 	6.5.	Acceptance of Agency. The Right Agent hereby accepts the agency established by this Agreement and agrees to perform the same upon the terms and conditions herein set forth.

 

	 	6.6.	Waiver. The Right Agent hereby waives any right of set-off or any other right, title, interest or claim of any kind (“Claim”) in, or to any distribution of, the Trust Account (as defined in that certain Investment Management Trust Agreement, dated as of the date hereof, by and between the Company and the Right Agent as trustee thereunder) and hereby agrees not to seek recourse, reimbursement, payment or satisfaction for any Claim against the Trust Account for any reason whatsoever.

 

	7.	Miscellaneous Provisions.

 

	 	7.1.	Successors. All the covenants and provisions of this Agreement by or for the benefit of the Company or the Right Agent shall bind and inure to the benefit of their respective successors and assigns.

 

 

    	  

    	 

    

 

	 	7.2.	Notices. Any notice, statement or demand authorized by this Agreement to be given or made by the Right Agent or by the holder of any Right to or on the Company shall be sufficiently given when so delivered if by hand or overnight delivery or if sent by certified mail or private courier service within five days after deposit of such notice, postage prepaid, addressed (until another address is filed in writing by the Company with the Right Agent), as follows:

 

	 	
    Mana Capital Acquisition Corp.

    Attn: Jonathan Intrater

    8 The Green

    Suite #12490

    Dover, DE 19901

  

	 	Any notice, statement or demand authorized by this Agreement to be given or made by the holder of any Right or by the Company to or on the Right Agent shall be sufficiently given when so delivered if by hand or overnight delivery or if sent by certified mail or private courier service within five days after deposit of such notice, postage prepaid, addressed (until another address is filed in writing by the Right Agent with the Company), as follows:

 

Continental Stock Transfer & Trust Company

1 State Street

New York, NY 10004

Attn: Administrative Department  

 

and  

 

Becker & Poliakoff LLP

45 Broadway

New York, New York 10006

Attn: Jie Chengying Xiu, Esq.  

 

and  

 

Ladenburg Thalmann &
Co. Inc. 

640 Fifth Avenue, 4th Floor 

New York, NY 10019 

Tel.: (212) 409 2119 

Attn.:   

 

and  

 

Blank Rome LLP

1271 Avenue of the Americas

New York, NY 10020

Attn: Brad L. Shiffman, Esq.

 

	 	7.3.	Applicable Law. The validity, interpretation, and performance of this Agreement and of the Rights shall be governed in all respects by the laws of the State of New York, without giving effect to conflicts of law principles that would result in the application of the substantive laws of another jurisdiction. The Company hereby agrees that any action, proceeding or claim against it arising out of or relating in any way to this Agreement shall be brought and enforced in the courts of the State of New York or the United States District Court for the Southern District of New York, and irrevocably submits to such jurisdiction, which jurisdiction shall be exclusive. The Company hereby waives any objection to such exclusive jurisdiction and that such courts represent an inconvenient forum. Any such process or summons to be served upon the Company may be served by transmitting a copy thereof by registered or certified mail, return receipt requested, postage prepaid, addressed to it at the address set forth in Section 7.2 hereof. Such mailing shall be deemed personal service and shall be legal and binding upon the Company in any action, proceeding or claim.

 

 

    	  

    	 

    

 

	 	7.4.	Persons Having Rights under this Agreement. Nothing in this Agreement expressed and nothing that may be implied from any of the provisions hereof is intended, or shall be construed, to confer upon, or give to, any person or corporation other than the parties hereto and the registered holders of the Rights and, for the purposes of Sections 3.1, 7.4 and 7.8 hereof, the Representative, any right, remedy, or claim under or by reason of this Agreement or of any covenant, condition, stipulation, promise, or agreement hereof. The Representative shall be deemed to be a third-party beneficiary of this Agreement with respect to Sections 3.1, 7.4 and 7.8 hereof. All covenants, conditions, stipulations, promises, and agreements contained in this Agreement shall be for the sole and exclusive benefit of the parties hereto (and the Representative with respect to Sections 3.1, 7.4 and 7.8 hereof) and their successors and assigns and of the registered holders of the Rights.

 

	 	7.5.	Examination of this Agreement. A copy of this Agreement shall be available at all reasonable times at the office of the Right Agent in the County of New York, State of New York, for inspection by the registered holder of any Right. The Right Agent may require any such holder to submit his, her or its Right for inspection by it.

  

	 	7.6.	Counterparts. This Agreement may be executed in any number of original or facsimile counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument.

 

	 	7.7.	Effect of Headings. The Section headings herein are for convenience only and are not part of this Agreement and shall not affect the interpretation thereof.

 

	 	7.8.	Amendments. This Agreement may be amended by the parties hereto without the consent of any registered holder for the purpose of curing any ambiguity, or of curing, correcting or supplementing any defective provision contained herein or adding or changing any other provisions with respect to matters or questions arising under this Agreement as the parties may deem necessary or desirable and that the parties deem shall not adversely affect the interest of the registered holders. All other modifications or amendments shall require the written consent or vote of the registered holders of a majority of the then outstanding Rights. The provisions of this Section 7.8 may not be modified, amended or deleted without the prior written consent of the Representative.

 

	 	7.9.	Severability. This Agreement shall be deemed severable, and the invalidity or unenforceability of any term or provision hereof shall not affect the validity or enforceability of this Agreement or of any other term or provision hereof. Furthermore, in lieu of any such invalid or unenforceable term or provision, the parties hereto intend that there shall be added as a part of this Agreement a provision as similar in terms to such invalid or unenforceable provision as may be possible and be valid and enforceable.

 

[Signature Page Follows]

 

 

 

    	  

    	 

    

 

IN WITNESS WHEREOF, this
Agreement has been duly executed by the parties hereto as of the day and year first above written.

 

	 	MANA CAPITAL ACQUISITION CORP.  
	 	 
	 	By:	 
	 	 	Name:	Jonathan Intrater 
	 	 	Title:	Chief Executive Officer
	 	 	 
	 	CONTINENTAL STOCK TRANSFER & TRUST COMPANY
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

 

 

 

 

 

 

[Signature page to Rights Agreement between Mana Capital
Acquisition Corp. and

Continental Stock Transfer & Trust Company]

  

 

 

 

    	  

    	 

    

 

EXHIBIT A

 

Form of Right

 

	
    NUMBER

     
	RIGHTS

 

MANA CAPITAL ACQUISITION CORP.

 

INCORPORATED UNDER THE LAWS OF THE DELAWARE

 

RIGHT

 

SEE REVERSE FOR

CERTAIN DEFINITIONS

 

CUSIP  

 

THIS CERTIFIES THAT, for value received

 

is the registered holder of a right or rights (each,
a “Right”) to automatically receive one-tenth of one share of common stock, $0.00001 par value (“Common Stock”),
of Mana Capital Acquisition Corp. (the “Company”) for each Right evidenced by this Rights Certificate on the Company’s
completion of an initial business combination (as defined in the prospectus relating to the Company’s initial public offering (“Prospectus”))
upon surrender of this Right Certificate pursuant to the Rights Agreement between the Company and Continental Stock Transfer & Trust
Company, as Rights Agent. In no event will the Company be required to net cash settle any Right.

 

Upon liquidation of the Company in the event an initial
business combination is not consummated during the required period as identified in the Company’s Amended and Restated Articles
of Incorporation, the Right shall expire and be worthless. The holder of a Right shall have no right or interest of any kind in the Company’s
trust account (as defined in the Prospectus).

 

Upon due presentment for registration of transfer
of the Right Certificate at the office or agency of the Rights Agent, a new Right Certificate or Right Certificates of like tenor and
evidencing in the aggregate a like number of Rights shall be issued to the transferee in exchange for this Right Certificate, without
charge except for any applicable tax or other governmental charge. The Company shall not issue fractional shares upon exchange of Rights.
The Company reserves the right to deal with any fractional entitlement at the relevant time in any manner (as provided in the Rights Agreement).

 

The Company and the Rights Agent may deem and treat
the registered holder as the absolute owner of this Right Certificate (notwithstanding any notation of ownership or other writing hereon
made by anyone), for the purpose of any conversion hereof, of any distribution to the registered holder, and for all other purposes, and
neither the Company nor the Right Agent shall be affected by any notice to the contrary.

 

This Right does not entitle the registered holder
to any of the rights of a shareholder of the Company.

 

	Dated:	 	 
	 	 	 
	CHIEF EXECUTIVE OFFICER	 	CHIEF FINANCIAL OFFICER
	 	 	 
	 	 	 
	 	 	 
	Continental Stock Transfer & Trust Company, as Rights Agent	 	 

   

 

    	  

    	 

    

 

The following abbreviations, when
used in the inscription on the face of this certificate, shall be construed as though they were written out in full according to applicable
laws or regulations:

 

	TEN COM	—	as tenants in common	 	UNIF GIFT MIN ACT	—	 	Custodian	 
	 	 	 	 	 	 	(Cust)	 	(Minor)
	TEN ENT	—	as tenants by the entireties	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	JT TEN	—	as joint tenants with right of survivorship and not as tenants in common	 	 	under Uniform Gifts to Minors Act
	 	 	 	 	(State)

 

Additional Abbreviations may also be used though not
in the above list.

 

Mana Capital Acquisition Corp.

 

The Company will furnish without
charge to each shareholder who so requests the powers, designations, preferences and relative, participating, optional or other special
rights of each class of shares or series thereof of the Company and the qualifications, limitations, or restrictions of such preferences
and/or rights. This certificate and the rights represented thereby are issued and shall be held subject to all the provisions of the Articles
of Incorporation and all amendments thereto and resolutions of the Board of Directors providing for the issue of shares of Common Stock
(copies of which may be obtained from the secretary of the Company), to all of which the holder of this certificate by acceptance hereof
assents.

 

For value received, ___________________________
hereby sell, assign and transfer unto

 

	PLEASE INSERT SOCIAL SECURITY OR OTHER

IDENTIFYING NUMBER OF ASSIGNEE	 
	 	 
	 	 

 

	(PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE)
	 
	 
	 
	 
	 

rights represented by the within Certificate, and
do hereby irrevocably constitute and appoint 

____________________________________________________________________________ Attorney
to transfer said rights on the books of the within named Company will full power of substitution in the premises. 

 

	Dated	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	Notice:	The signature to this assignment must correspond with the name as written upon the face of the certificate in every particular, without alteration or enlargement or any change whatever.

 

Signature(s) Guaranteed:

 

	 	 
	THE SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM, PURSUANT TO S.E.C. RULE 17Ad-15).	 

 

The holder of this certificate shall have no right
or interest of any kind in or to the funds held in the Company’s trust account (as defined in the Prospectus).Exhibit 4.6

 

FORM 51-102F3

 

MATERIAL CHANGE REPORT

 

		1.	Name and Address of Company

 

Protech Home Medical Corp. (the “Company”)

1019 Town Drive

Wilder, Kentucky 41076

 

		2.	Date
of Material Change

 

September 23, 2020

 

		3.	News Release

 

A news release with respect to the material
change referred to in this report was disseminated on September 26, 2020 through GlobeNewswire and filed on the system for electronic
document analysis and retrieval (SEDAR).

 

		4.	Summary of Material Change

 

The Company acquired all of the issued
and outstanding equity securities of Sleepwell, LLC, a company based in the State of Georgia, reporting unaudited trailing 12-month annual
revenues of approximately $13.0 million, adjusted EBITDA of approximately $3.25 million, net income of approximately $2.5 million.

 

		5.	Full Description of Material Change

 

		5.1	Full Description of Material Change

 

The material change is fully described in the news release
attached hereto.

 

		5.2	Disclosure
for Restructuring Transactions

 

Not applicable.

 

		6.	Reliance
on Subsection 7.1(2) of Regulation 51-102

 

Not applicable.

 

		7.	Omitted
Information

 

Not applicable.

 

		8.	Executive Officer

 

For additional information, please contact
Hardik Mehta, Chief Financial Officer of the Company, at (859) 202-3085.

 

		9.	Date
of Report

 

November 2, 2020

 

     

     

    

 

PROTECH ADDS $13 MILLION IN ANNUALIZED REVENUES
WITH A 25% ADJUSTED EBITDA

MARGIN, AND OVER $2.5 MILLION IN NET INCOME, WITH THE HIGHLY ACCRETIVE

ACQUISITION OF SLEEPWELL, LLC

 

PROTECH TO AUGMENT SLEEPWELL RE-SUPPLY BUSINESS
WITH EXISTING TECHNOLOGY

DRIVEN SUBSCRIPTION MODEL

 

PROTECH STRENGTHENS SOUTHEAST GEORGIA POSITION
AND ENTERS DAYTON OHIO

MARKET

 

AND INCREASES PROTECH’S ACTIVE PATIENT
COUNT BY MORE THAN 15,000

 

Cincinnati, Ohio – October 26, 2020
 – Protech Home Medical Corp. (“Protech” or the “Company”) (TSXV: PTQ), (OTCQX: PTQQF), a U.S.
based leader in the home medical equipment industry, focused on end-to-end respiratory care, is pleased to announce that it has acquired
Sleepwell, LLC (“Sleepwell”), a company based in Georgia, reporting unaudited trailing 12-month annual revenues of
approximately $13.0 million, adjusted EBITDA of approximately $3.25 million, net income of approximately $2.5 million and no debt. The
acquisition of Sleepwell was originally announced by Protech on September 8, 2020 when it executed a non-binding letter of intent.

 

Acquisition Details

 

Excluding the impact of future acquisitions, and
organic growth derived from continuing operations, we are pleased to share the following selected financial and operating metrics for
Protech following the closing of Sleepwell:

 

		·	Run-Rate Revenue of $120-$125 million
		·	Run-Rate Adjusted EBITDA of $26-$30 million
		·	110,000 current active patients
		·	17,000 unique referrals
		·	48 locations across 10 U.S. States

 

Sleepwell is a leader in sleep services in the
State of Georgia, with significant penetration in the Southeastern corridor of the region. Resembling Protech’s mission, Sleepwell
and its 34 employees have a keen focus on delivering superior service through patient care and education, providing high-quality equipment,
and supplies. In addition to Georgia, Sleepwell also provides sleep services to patients in Dayton, Ohio, which represents a new market
for Protech. The acquisition provides the Company with an attractive metro hub within the State of Ohio where it will leverage its existing
first-rate infrastructure to create additional patient growth opportunities. Protech’s presence in the Southeast will greatly increase
with five new locations, and the addition of three new markets including Dayton, and will increase Protech’s active patient count
by over 15,000. Sleepwell has tremendous diversification amongst referral sources, a strong recurring revenue platform, and a very solid
and diversified payor base.

 

Sleepwell is highly concentrated on sleep therapy
with a very strong re-supply business, which Protech intends to significantly expand upon. In order to accomplish this objective, Protech
will utilize its technology driven, patient centric model already implemented across the entire organization to run the Sleepwell re-supply
program, which the Company expects will serve to significantly reduce fulfillment errors and increases overall volumes. Protech’s
keen understanding and utilization of significant workflow processes has driven extraordinary operational efficiencies and will be a major
contributor to accelerated growth for the future. Currently, Protech derives $25 million from its resupply subscription model and anticipates
that growing to over $30 million with Sleepwell fully integrated.

 

Protech is pleased to announce that Dave McLeod,
12-year DME veteran and owner of Sleepwell, will join the Protech executive team as Director of Sleep Services.

 

“I am extremely excited to join the
Protech team in this important role at such a critical juncture in the company’s growth path” said Dave McLeod, Director
of Sleep Services. “Sleepwell and Protech share the same vision of providing extraordinary patient care and education, rather
than simply providing a piece of equipment to a patient. It was this patient centric model that really attracted us to join the
Protech family. To that end, I felt so strongly about the future growth at Protech, I decided to structure the deal to
take a substantial amount of the total consideration in shares to further align ourselves for the long term. I look forward to being
a part of the future success of Protech.”

 

     

     

    

 

Under the terms of the definitive purchase agreement,
subject to closing and hold back adjustments, Protech has acquired Sleepwell for a combination of cash and share consideration of approximately
$9.3 million and $5.1 million, respectively. Post integration, it is expected that Sleepwell will increase Protech’s annual revenues
by approximately $13 million and adjusted EBITDA by $3.4-$4.0 million. Leveraging existing infrastructure and payor contracts, Protech
expects to achieve additional revenue generated from organic growth, cross selling and corporate synergies. The approximate $5.1 million
in share consideration is being issued at $1.47 per share and is payable as to 2,517,857 common shares on January 4, 2021 (subject
to a 4 month hold and 2,517,857 subject to an additional contractual 6 month hold thereafter) and up to 982,142 on August 31, 2022
(subject to a 4 month hold).

 

Management Commentary

 

“The closing of the Sleepwell acquisition
comes at an important inflection point for Protech. On the heels of surpassing the $100 million annual revenue run-rate, we have quickly
grown to a revised annual revenue run-rate of over $120 million, reflecting our continued aggressive stance towards building scale at
a reasonable cost across the organization. Sleepwell helps reach this goal by aiding Protech in further penetrating existing markets in
Georgia and opening new and exciting markets in both Georgia and Ohio. We are thrilled to welcome the Sleepwell team to the Protech family,”
said Greg Crawford, Chairman and CEO of Protech. “We see a tremendous amount of synergies between our companies and believe the
strong sleep re-supply business Sleepwell has in place presents us with significant upside as we deploy our technology therein with a
goal of increasing overall efficiencies. The diversified payor mix, and deep referral source base will be very impactful for us and we
are excited to scale our presence in the markets Sleepwell presently serves. Sleepwell, much like HTR, our prior acquisition, has a very
strong margin profile and is immediately accretive to Protech’s EBITDA and overall profitability, which we continue to be aggressively
focused on.”

 

Chief Financial Officer, Hardik Mehta added, “Sleepwell
is an example of the larger, highly accretive acquisitions we are now focused on. With our pristine balance sheet and our untapped US$20
million revolving credit facility with CIT Bank, we are in the strongest position in the history of the company to aggressively and responsibly
deploy our capital to achieve the increased scale we are after. Moreover, the level of profitability Sleepwell has in relation to our
overall profitability will put us closer to achieving continuous positive net income which we are steadfast on reaching as an organization.
With an annual revenue run-rate of over $120 million, we are rapidly nearing an inflection point, which will bode well in us achieving
a higher contribution margin to the bottom line. We continue to have a robust pipeline of acquisition targets and are focused on larger
revenue opportunities which would be highly accretive. As always, we will continue to stand firm with our guided acquisition approach
and will not waver when the right deal on the right terms becomes available.”

 

ABOUT PROTECH HOME MEDICAL CORP.

 

The Company provides in-home monitoring and disease
management services including end-to-end respiratory solutions for patients in the United States healthcare market. It seeks to continue
to expand its offerings to include the management of several chronic disease states focusing on patients with heart or pulmonary disease,
sleep disorders, reduced mobility and other chronic health conditions. The primary business objective of the Company is to create shareholder
value by offering a broader range of services to patients in need of in-home monitoring and chronic disease management. The Company’s
organic growth strategy is to increase annual revenue per patient by offering multiple services to the same patient, consolidating the
patient’s services and making life easier for the patient.

 

     

     

    

 

Forward-Looking Statements

 

Certain statements contained in this press
release constitute "forward-looking information" as such term is defined in applicable Canadian securities legislation. The
words "may", "would", "could", "should", "potential", "will", "seek",
 "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar
expressions as they relate to the Company, including: the Company intending on expanding Sleepwell’s re-supply business and the
Company’s expectations for the impact of its technology on Sleepwell’s re-supply program; the Company growing its re-supply
subscription model to over $30 million; Sleepwell increasing the Company’s annual revenues by approximately $13 million and adjusted
EBITDA by $3.4-$4.0 million; the Company achieving additional revenue from organic growth, cross selling and corporate synergies; and
the Company completing additional acquisitions in 2020; are intended to identify forward-looking information. All statements other than
statements of historical fact may be forward-looking information. Such statements reflect the Company's current views and intentions
with respect to future events, and current information available to the Company, and are subject to certain risks, uncertainties and
assumptions, including: Sleepwell’s financial performance in the next 12 months being
the same or better than their trailing twelve months; and the Company successfully identified, negotiating and completing additional
acquisitions, including accretive acquisitions. Many factors could cause the actual results, performance or achievements that may be
expressed or implied by such forward-looking information to vary from those described herein should one or more of these risks or uncertainties
materialize. Examples of such risk factors include, without limitation: credit; market (including equity, commodity, foreign exchange
and interest rate); liquidity; operational (including technology and infrastructure); reputational; insurance; strategic; regulatory;
legal; environmental; capital adequacy; the general business and economic conditions in the regions in which the Company operates; the
ability of the Company to execute on key priorities, including the successful completion of acquisitions, business retention, and strategic
plans and to attract, develop and retain key executives; difficulty integrating newly acquired businesses; the ability to implement business
strategies and pursue business opportunities; low profit market segments; disruptions in or attacks (including cyber-attacks) on the
Company's information technology, internet, network access or other voice or data communications systems or services; the evolution of
various types of fraud or other criminal behavior to which the Company is exposed; the failure of third parties to comply with their
obligations to the Company or its affiliates; the impact of new and changes to, or application of, current laws and regulations; decline
of reimbursement rates; dependence on few payors; possible new drug discoveries; a novel business model; dependence on key suppliers;
granting of permits and licenses in a highly regulated business; the overall difficult litigation environment, including in the U.S.;
increased competition; changes in foreign currency rates; increased funding costs and market volatility due to market illiquidity and
competition for funding; the availability of funds and resources to pursue operations; critical accounting estimates and changes to accounting
standards, policies, and methods used by the Company; the occurrence of natural and unnatural catastrophic events and claims resulting
from such events; and risks related to COVID-19 including various recommendations, orders and measures of governmental authorities to
try to limit the pandemic, including travel restrictions, border closures, non-essential business closures, quarantines, self-isolations,
shelters-in-place and social distancing, disruptions to markets, economic activity, financing, supply chains and sales channels, and
a deterioration of general economic conditions including a possible national or global recession; as well as those risk factors discussed
or referred to in the Company’s disclosure documents filed with the securities regulatory authorities in certain provinces of Canada
and available at www.sedar.com. Should any factor affect the Company in an unexpected manner, or should assumptions underlying
the forward-looking information prove incorrect, the actual results or events may differ materially from the results or events predicted.
Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Moreover, the Company does
not assume responsibility for the accuracy or completeness of such forward-looking information. The forward-looking information included
in this press release is made as of the date of this press release and the Company undertakes no obligation to publicly update or revise
any forward-looking information, other than as required by applicable law.

 

Non-GAAP Measures

 

This press release refers to “Adjusted
EBITDA” which is a non-GAAP and non-IFRS financial measure that does not have a standardized meaning prescribed by GAAP or IFRS.
The Company’s presentation of this financial measure may not be comparable to similarly titled measures used by other companies.
This financial measure is intended to provide additional information to investors concerning the Company’s and Sleepwell’s
performance. Adjusted EBITDA is defined as EBITDA excluding stock-based compensation. Adjusted EBITDA is a Non-IFRS measure the Company
uses as an indicator of financial health and excludes several items which may be useful in the consideration of the financial condition
of the Company and Sleepwell, as applicable, including interest expense, income taxes, depreciation, amortization, stock-based compensation,
goodwill impairment and change in fair value of debentures and financial derivatives.

 

The securities referred to in this news release
have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold
within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from
the U.S. registration requirements. This news release does not constitute an offer for sale of securities, nor a solicitation for offers
to buy any securities. Any public offering of securities in the United States must be made by means of a prospectus containing detailed
information about the company and management, as well as financial statements.

 

     

     

    

 

Unless otherwise specified, all dollar amounts in this press release
are expressed in Canadian dollars.

 

Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy
of this release.

 

For
further information please visit our website at www.protechhomemedical.com, or contact:

 

Cole Stevens

VP of Corporate Development

Protech Home Medical Corp.

859-300-6455

cole.stevens@myphm.com

 

Gregory Crawford

Chief Executive Officer

Protech Home Medical Corp.

859-300-6455

investorinfo@myphm.com

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