Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers that: (a) The Issuer is an exempted company duly incorporated, validly existing and in good standing under the laws of the Cayman Islands. The Issuer has all power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Agreement. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands. (b) As of the Closing Date, all the Equity Support Shares will be duly authorized and, when issued and delivered to each Subscriber against full payment therefor in accordance with the terms of this Equity Support Agreement, the Equity Support Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum and articles of association (as in effect at such time of issuance) or under the Companies Act, as amended, of the Cayman Islands. (c) This Equity Support Agreement has been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Agreement constitutes the valid and binding agreement of each Subscriber, this Equity Support Agreement is enforceable against the Issuer in accordance with its terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or (ii) principles of equity, whether considered at law or equity. (d) The issuance and sale by the Issuer of all the Equity Support Shares pursuant to this Equity Support Agreement, and the performance of its obligations hereunder and under each Pledge Agreement and Control Agreement and the transactions contemplated thereby, will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have a Material Adverse Effect or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreement. (e) As of their respective filing dates, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any of the SEC Reports. (f) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the issuance of the Equity Support Shares pursuant to this Equity Support Agreement, other than (i) filings with the SEC, (ii) filings required by applicable state securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support Agreement; (iv) those required by The Nasdaq Stock Market LLC, including with respect to obtaining approval of the Issuer’s stockholders, and (v) those the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. (g) As of the date hereof, the Issuer has not received any written communication from a governmental authority that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. (h) Assuming the accuracy of each Subscriber’s representations and warranties set forth in Section 6 of this Equity Support Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Shares by the Issuer to each Subscribers. (i) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act. (j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act. (k) The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Equity Support Shares. (l) The Issuer is not, and the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended. (m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act). (n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts. (o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o). (p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties. (q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15. (r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 3 contracts
Samples: Equity Support Agreement (TH International LTD), Equity Support Agreement (TH International LTD), Equity Support Agreement (Silver Crest Acquisition Corp)
Issuer Representations and Warranties. The Issuer represents and warrants to that at the time of the signing of this Agreement and at the time of each Subscribers thatclosing of the Offering:
(a) The Issuer a. it is an exempted company duly incorporatedorganized, validly existing and in good standing under in the laws of state in which it is incorporated with the Cayman Islands. The Issuer has all power (corporate or otherwise) and authority to own, lease and operate own its properties and to conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Agreement. As of described in the Closing Date, the Issuer will be duly incorporated, validly existing and Offering Materials;
b. it is in good standing under in each other jurisdiction in which the laws conduct of the Cayman Islands.
(b) As its business or ownership or leasing of the Closing Date, all the Equity Support Shares will its properties requires it to be duly authorized and, when issued and delivered to each Subscriber against full payment therefor in accordance with the terms of this Equity Support Agreement, the Equity Support Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of so qualified or subject to any preemptive or similar rights created under the Issuer’s memorandum and articles of association (as in effect at such time of issuance) or under the Companies Act, as amended, of the Cayman Islands.
(c) This Equity Support Agreement has been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Agreement constitutes the valid and binding agreement of each Subscriber, this Equity Support Agreement is enforceable against the Issuer in accordance with its termslicensed, except as may whether the failure to be limited so qualified or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or (ii) principles of equity, whether considered at law or equity.
(d) The issuance and sale by the Issuer of all the Equity Support Shares pursuant to this Equity Support Agreement, and the performance of its obligations hereunder and under each Pledge Agreement and Control Agreement and the transactions contemplated thereby, will licensed would not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that would reasonably be expected to have a material adverse effect on the business, properties, assets, condition (financial condition or results of operations otherwise) or prospects of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), or materially affect the validity of the Equity Support Shares or the legal authority of whole;
c. the Issuer to comply in all material respects with its obligations under incorporates Section 3(b) above into this Equity Support Agreement; (ii) result in any violation of the provisions of the organizational documents Section;
d. this Agreement has been duly authorized, executed, and delivered on behalf of the Issuer; or (iii) result in any violation of any law, statute or any judgmentand is the valid, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have a Material Adverse Effect or materially affect the validity binding and obligation of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreement.
(e) As of their respective filing datesIssuer, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any of the SEC Reports.
(f) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the issuance of the Equity Support Shares pursuant to this Equity Support Agreement, other than (i) filings with the SEC, (ii) filings required by applicable state securities laws, (iii) the filings required enforceable in accordance with Section 16 its terms;
e. no authorization, approval, consent, or license of this Equity Support Agreement; (iv) those any regulatory body or authority is required by The Nasdaq Stock Market LLCfor the valid authorization, including with respect to obtaining approval sale or delivery of the Issuer’s stockholders, and (v) those the failure of which to obtain would not be reasonably be expected to have, individually or securities in the aggregateOffering, a Material Adverse Effect.or, if so required, all authorizations, approvals, consents and licenses have been or will be obtained and will remain in full force and effect;
(g) As f. the securities subject to the Offering will, when issued, sold and delivered in accordance with the terms of the date hereofOffering, be duly and validly issued, fully paid and nonassessable and free of restrictions on transfer other than restrictions on transfer under agreements with the Investors purchasing such securities and applicable state and federal securities laws;
g. if conducted in accordance with the terms of the Offering Materials and this Agreement, the Issuer has not received any written communication Offering is exempt from a governmental authority that alleges that the Issuer is not in compliance with or is in default or violation registration requirements of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(h) Assuming the accuracy of each Subscriber’s representations and warranties set forth in Section 6 of this Equity Support Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Shares by the Issuer to each Subscribers.
(i) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Equity Support Shares.
(l) The Issuer is notamended, and the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, rules and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment regulations promulgated thereunder and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term applicable state requirements and is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent compliance with all investment policies, guidelines applicable rules and other restrictions regulations under the Federal and any applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15State securities laws.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 3 contracts
Samples: Securities Distribution Agreement (Impact Housing REIT, LLC), Securities Distribution Agreement (Royalty Flow Inc.), Securities Distribution Agreement (Royalty Flow Inc.)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers that:
(a) a. The Issuer has been duly incorporated and is an exempted company duly incorporated, validly existing and as a corporation in good standing under the laws of the Cayman Islands. The Issuer has all State of Delaware, with corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As of the Closing Date, all the Equity Support b. The Acquired Shares will be have been duly authorized and, when issued and delivered to each Subscriber against full payment therefor for the Acquired Shares in accordance with the terms of this Equity Support Subscription Agreement, the Equity Support Acquired Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum and articles certificate of association incorporation (as in effect at such time amended as of issuancethe Closing Date) and bylaws or under the Companies Act, as amended, laws of the Cayman IslandsState of Delaware.
c. This Subscription Agreement, the Other Subscription Agreements, the Purchase Agreement and the Registration Rights Agreement (ccollectively, the “Transaction Documents”) This Equity Support Agreement has have been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Agreement constitutes the valid and binding agreement of each Subscriber, this Equity Support Agreement is are enforceable against the Issuer in accordance with its their respective terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or and (ii) principles of equity, whether considered at law or equity.
(d) The issuance d. Assuming the accuracy of Subscriber’s representations and sale warranties in Section 5, the execution and delivery by the Issuer of all the Equity Support Shares pursuant to this Equity Support AgreementTransaction Documents, and the performance by the Issuer of its obligations hereunder under the Transaction Documents, including the issuance and under each Pledge Agreement and Control Agreement sale of the Acquired Shares and the consummation of the other transactions contemplated therebyherein, do not and will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries Subsidiaries (as defined below) pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries Subsidiaries is bound or to which any of the property or assets of the Issuer or is subject that Subsidiaries is subject, which would reasonably be expected to have a material adverse effect on the business, properties, financial condition condition, stockholders’ equity or results of operations of the Issuer and its subsidiaries, Subsidiaries taken as a whole (a “Material Adverse Effect”), ) or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under the terms of this Equity Support Subscription Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation statute or any judgment, order, rule or regulation of any lawcourt or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or its Subsidiaries or any of their respective properties, in the case of each of the foregoing clauses (i)-(iii) that would have a Material Adverse Effect or materially affect the validity of the Acquired Shares or the legal authority of the Issuer to comply in all material respects with this Subscription Agreement. For purposes of this Subscription Agreement, “Subsidiaries” shall have the meaning ascribed to such term in the Purchase Agreement.
e. There are no securities or instruments issued by or to which the Issuer is a party containing anti-dilution or similar provisions that will be triggered by the issuance of (i) the Acquired Shares or (ii) the Common Shares to be issued pursuant to any Other Subscription Agreement, in each case, that have not been or will not be validly waived on or prior to the Closing Date.
f. The Issuer is not in default or violation (and no event has occurred which, with notice or the lapse of time or both, would constitute a default or violation) of any term, condition or provision of (i) the organizational documents of the Issuer, (ii) any loan or credit agreement, note, bond, mortgage, indenture, lease or other agreement, permit, franchise or license to which the Issuer is now a party or by which the Issuer’s properties or assets are bound, or (iii) any statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties properties, except, in the case of clauses (ii) and (iii), for defaults or violations that have not had and would not be reasonably be expected likely to have have, individually or in the aggregate, a Material Adverse Effect or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support AgreementEffect.
(e) As g. Assuming the accuracy of their respective filing datesSubscriber’s representations and warranties in Section 5, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any of the SEC Reports.
(f) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the execution, delivery and performance by the Issuer of this Subscription Agreement (including, without limitation, the issuance of the Equity Support Shares pursuant to this Equity Support AgreementAcquired Shares), other than (i) filings with the SEC, (ii) filings required by applicable state or federal securities laws, (iiiii) the filings required in accordance with Section 16 7(m), (iii) those notices and filings required by the Nasdaq Global Market (the “Stock Exchange”), which notices and filings have been made prior to the execution of this Equity Support Agreement; , and (iv) those required by The Nasdaq Stock Market LLC, including with respect to obtaining approval of the Issuer’s stockholders, and (v) those the failure of which to obtain would not be reasonably likely to have, individually or in the aggregate, a Material Adverse Effect or have a material adverse effect on the Issuer’s ability to consummate the transactions contemplated hereby, including the sale and issuance of the Acquired Shares.
h. As of the date hereof, upon the closing of the Transaction but prior to the closing of the Subscription and the transactions contemplated by the Other Subscription Agreements, (i) the authorized capital stock of the Issuer consists of (A) 50,000,000 shares of preferred stock and (B) 100,000,000 Common Shares and (ii) 5,294,462 shares of preferred stock are issued and outstanding and 27,603,183 Common Shares are issued (including 4,618,146.00 of which are held in ADES’ treasury) and 22,985,037 Common Shares are outstanding.
i. The issued and outstanding Common Shares are registered pursuant to Section 12(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and are listed for trading on the Stock Exchange. There is no suit, action, proceeding or investigation pending or, to the knowledge of the Issuer, threatened against the Issuer by the Stock Exchange or the U.S. Securities and Exchange Commission (the “Commission”) with respect to any intention by such entity to deregister the Common Shares or prohibit or terminate the listing of the Common Shares on the Stock Exchange. The Issuer has taken no action that is designed to terminate the registration of the Common Shares under the Exchange Act.
j. Assuming the accuracy of Subscriber’s representations and warranties set forth in Section 5, no registration under the Securities Act is required for the offer and sale of the Acquired Shares by the Issuer to Subscriber in the manner contemplated by this Subscription Agreement.
k. Neither the Issuer nor any person acting on its behalf has engaged or will engage in any form of general solicitation or general advertising (within the meaning of Regulation D of the Securities Act) in connection with any offer or sale of the Acquired Shares.
l. None of the forms, reports, statement, schedules, prospectuses, proxies, registration statements or other documents, if any, filed by the Issuer with the Commission since January 1, 2020 (the “SEC Documents”) filed under the Exchange Act (except to the extent that information contained in any SEC Document has been superseded by a later timely filed SEC Document) contained, when filed or, if amended prior to the date of this Subscription Agreement, as of the date of such amendment with respect to those disclosures that are amended, any untrue statement of a material fact or omitted to state a material fact required to be expected stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, except that have not had and would not be reasonably likely to have, individually or in the aggregate, a Material Adverse Effect.
(g) . As of the date hereof, there are no material outstanding or unresolved comments in comment letters from the Issuer has Staff of the Commission with respect to any of the SEC Documents.
m. Except for such matters as have not received any written communication from a governmental authority that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation had and would not be reasonably be expected likely to have, individually or in the aggregate, a Material Adverse Effect.
(h) Assuming the accuracy of each Subscriber’s representations and warranties set forth in Section 6 of this Equity Support Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Shares by the Issuer to each Subscribers.
date hereof, there is no (i) Neither suit, action, proceeding or arbitration before a governmental authority or arbitrator pending, or, to the knowledge of the Issuer or its Subsidiaries, threatened against the Issuer or its Subsidiaries, (ii) judgment, decree, injunction, ruling or order of any governmental entity or arbitrator outstanding against the Issuer or its Subsidiaries or that has the effect of making consummation of the Subscription illegal or otherwise preventing or prohibiting consummation of the Subscription or (iii) governmental authority that shall have instituted or threatened in writing a proceeding seeking to impose any such prevention or prohibition.
n. None of the Issuer, its Subsidiaries, nor any person acting on its their behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Equity Support Shares.
(l) The Issuer is not, and the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have nothas, directly or indirectly, negotiated made any offers or entered into an Excluded Financing with sales of any other parties for the benefit security or solicited any offers to buy any security, under circumstances that would require registration of the Issuer, the SPAC, the shareholders issuance of any of the Issuer or Acquired Shares under the shareholders Securities Act, whether through integration with prior offerings pursuant to Rule 502(a) of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o)Securities Act or otherwise.
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 2 contracts
Samples: Subscription Agreement (Blank Jeremy), Subscription Agreement (McIntyre Julian Alexander)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers that:
(a) The Issuer has been duly incorporated and is an exempted company duly incorporated, validly existing and as a corporation in good standing under the laws of the Cayman IslandsState of Delaware. The Subject to obtaining all required approvals necessary in connection with the performance of the Agreement and Plan of Merger and the consummation of the Transactions (collectively, the “Required Approvals”), the Issuer has all corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As of the Merger Closing Date, all the Equity Support Acquired Shares will be duly authorized by the Issuer and, when issued and delivered to each Subscriber against full payment therefor for the Acquired Shares in accordance with the terms of this Equity Support AgreementSubscription Agreement and registered with the Transfer Agent, the Equity Support Acquired Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum certificate of incorporation and articles of association (as in effect at such time of issuance) bylaws or under the Companies Act, as amended, of the Cayman IslandsDelaware General Corporation Law.
(c) This Equity Support Subscription Agreement has been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Subscription Agreement constitutes the valid and binding agreement of each Subscriber, this Equity Support Agreement is the valid and binding obligation of the Issuer, enforceable against the Issuer in accordance with its terms, except as may be limited or otherwise affected by (i) applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or and (ii) principles of equity, whether considered at law or equity.
(d) The Subject to obtaining the Required Approvals, the execution, delivery and performance by the Issuer of this Subscription Agreement (including compliance by the Issuer with all of the provisions hereof), and the issuance and sale by the Issuer of all the Equity Support Shares pursuant to this Equity Support Agreement, and the performance of its obligations hereunder and under each Pledge Agreement and Control Agreement and the transactions contemplated therebyAcquired Shares, will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that subject, which would be reasonably be expected likely to have have, individually or in the aggregate, a material adverse effect on the business, properties, financial condition condition, stockholders’ equity or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), ) or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its the Issuer’s obligations under this Equity Support Subscription Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would be reasonably be expected likely to have have, individually or in the aggregate, a Material Adverse Effect or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its the Issuer’s obligations under this Equity Support Subscription Agreement.
(e) As of their respective filing datesOther than the Issuer’s Class B common stock, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission par value $0.0001 per share (the “SECClass B Shares”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereof), there are no material outstanding securities or unresolved comments in comment letters received instruments issued by or to which the Issuer is a party containing anti-dilution or similar provisions that will be triggered by the Issuer from issuance of (i) the staff Acquired Shares or (ii) the shares to be issued pursuant to any Other Subscription Agreement that have not been or will not be validly waived on or prior to the Merger Closing Date; provided, that the holders of the Division of Corporation Finance of Class B Shares will waive any such anti-dilution or similar provisions in connection with the SEC with respect to any of the SEC ReportsTransactions.
(f) The Issuer is not in default or violation (and no event has occurred which, with notice or the lapse of time or both, would constitute a default or violation) of any term, condition or provision of (i) the organizational documents of the Issuer, (ii) any loan or credit agreement, note, bond, mortgage, indenture, lease or other agreement, permit, franchise or license to which the Issuer is now a party or by which the Issuer’s properties or assets are bound or (iii) any statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties, except, in the case of clauses (ii) and (iii), for defaults or violations that have not had and would not be reasonably likely to have, individually or in the aggregate, a Material Adverse Effect.
(g) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the execution, delivery and performance by the Issuer of this Subscription Agreement (including, without limitation, the issuance of the Equity Support Shares pursuant to this Equity Support AgreementAcquired Shares), other than (i) filings with the SECSecurities and Exchange Commission (the “Commission”), (ii) filings required by applicable state securities laws, (iii) the filings required in accordance with Section 16 9(o) of this Equity Support Subscription Agreement; (iv) those filings required by The Nasdaq Stock Market LLCthe NYSE, including with respect to obtaining approval of the Issuer’s stockholders, stockholder approval; and (v) those the failure of which to obtain would not be reasonably be expected likely to have, individually or in the aggregate, a Material Adverse Effect.
(gh) As of the date hereofof this Subscription Agreement, the authorized capital stock of the Issuer consists of (i) 5,000,000 shares of preferred stock, par value $0.0001 per share (“Preferred Shares”), (ii) 500,000,000 Class A Shares, and (iii) 20,000,000 Class B Shares. As of the date hereof: (i) no Preferred Shares are issued and outstanding, (ii) 69,000,000 Class A Shares are issued and outstanding, (iii) 17,250,000 Class B Shares are issued and outstanding and (iv) warrants to purchase up to 33,533,333 Class A Shares are outstanding.
(i) The Issuer has not received any written communication from a governmental authority entity that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not be reasonably be expected likely to have, individually or in the aggregate, a Material Adverse Effect.
(hj) The issued and outstanding Class A Shares are registered pursuant to Section 12(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and are listed for trading on the NYSE under the symbol “GSAH”. There is no suit, action, proceeding or investigation pending or, to the knowledge of the Issuer, threatened against the Issuer by the NYSE or the Commission, respectively, to prohibit or terminate the listing of the Class A Shares on the NYSE or to deregister the Class A Shares under the Exchange Act. The Issuer has taken no action that is designed to terminate the registration of the Class A Shares under the Exchange Act.
(k) Assuming the accuracy of each Subscriber’s representations and warranties set forth in Section 6 4 of this Equity Support Subscription Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Acquired Shares by the Issuer to each SubscribersSubscriber.
(il) Neither the Issuer nor anyone acting on its behalf has offered the Class A Shares or any similar securities for sale to, or solicited any offer to buy any of the same from, or otherwise approached or negotiated in respect thereof with, any person other than Subscriber and other accredited investors, each of which has been offered Class A Shares at a private sale for investment.
(m) None of the Issuer nor any of its affiliates has offered Class A Shares or any similar securities during the six months prior to the date hereof to anyone other than in connection with the Transactions and to Subscriber and other investors in connection with the Other Subscription Agreements. Other than the foregoing, the Issuer has no intention to offer Class A Shares or any similar security during the six months from the date hereof other than in connection with the Transactions, including any transactions referenced in the Agreement and Plan of Merger.
(n) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Acquired Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction Closingadvertising, including, but not limited to, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(bfollowing: (1) of the Exchange Act. Following the Closingany advertisement, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under article, notice or other communication published in any obligation to pay any broker’s fee or commission in connection with the sale of the Equity Support Shares.
(l) The Issuer is notnewspaper, and the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) ismagazine, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly similar media or indirectly, negotiated broadcast over television or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.radio;
Appears in 2 contracts
Samples: Subscription Agreement (Vertiv Holdings Co), Subscription Agreement (GS Acquisition Holdings Corp)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers the Investor that:
(a) a. The Issuer is an exempted company duly incorporated, validly existing and in good standing under the laws of the Cayman Jersey, Channel Islands. The Issuer has all power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. .
b. As of the Closing Date, subject to the Issuer will be duly incorporated, validly existing and in good standing under the laws receipt of the Cayman Islands.
(b) As Subscription Amount in accordance with the terms of this Subscription Agreement and registration on the Closing DateIssuer’s register of members, all the Equity Support Shares will be duly authorized and, when issued and delivered to each Subscriber the Investor against full payment therefor in accordance with the terms of this Equity Support AgreementSubscription Agreement and registered on the Issuer’s register of members, the Equity Support Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum and articles of association (as may be amended and/or restated from time to time) in effect at such time of issuance) on the Closing Date or under the Jersey Companies Act, as amended, of the Cayman IslandsLaw.
(c) c. This Equity Support Subscription Agreement has been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Subscription Agreement constitutes the valid and binding agreement of each SubscriberSPAC and the Investor, this Equity Support Subscription Agreement is enforceable against the Issuer in accordance with its terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or (ii) principles of equity, whether considered at law or equity.
(d) d. The issuance and sale of the Shares and the compliance by the Issuer with all of all the Equity Support Shares pursuant to provisions of this Equity Support Agreement, and the performance of its obligations hereunder and under each Pledge Agreement and Control Subscription Agreement and the consummation of the transactions contemplated thereby, herein will not (i) conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), or materially affect the validity of the Equity Support Shares or the legal authority ability of the Issuer to timely comply in all material respects with its obligations under the terms of this Equity Support AgreementSubscription Agreement (an “Issuer Material Adverse Effect”); (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have a Material Adverse Effect or materially affect the validity of the Equity Support Shares or the legal authority of the an Issuer to comply in all material respects with its obligations under this Equity Support Agreement.
(e) As of their respective filing dates, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any of the SEC Reports.
(f) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the issuance of the Equity Support Shares pursuant to this Equity Support Agreement, other than (i) filings with the SEC, (ii) filings required by applicable state securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support Agreement; (iv) those required by The Nasdaq Stock Market LLC, including with respect to obtaining approval of the Issuer’s stockholders, and (v) those the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(g) As of the date hereof, the Issuer has not received any written communication from a governmental authority that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(h) e. Assuming the accuracy of each Subscriberthe Investor’s representations and warranties set forth in Section 6 of this Equity Support Agreement6, no registration under the Securities Act of 1933, as amended (the “Securities Act”), ) is required for the offer and sale of the Equity Support Shares by the Issuer to each Subscribers.
the Investor hereunder. The Shares (i) Neither the Issuer nor any person acting on its behalf has were not offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Equity Support Shares.
(l) The Issuer is not, and the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for to the purposes of Cayman Islands lawIssuer’s knowledge are not being offered in a manner involving a public offering under, is and will be unable to pay its debts.
(o) The Issueror in a distribution in violation of, the SPACSecurities Act, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o)state securities laws.
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 2 contracts
Samples: Subscription Agreement (Crown LNG Holdings LTD), Subscription Agreement (Catcha Investment Corp)
Issuer Representations and Warranties. The Issuer represents represents, warrants and warrants to each Subscribers that:
agrees that (a) The Issuer is an exempted company duly incorporated, validly existing and in good standing under the laws its use of the Cayman Islands. The Services and Platform by Authorized Participants complies and will comply with all Applicable Laws, including, for the avoidance of doubt, Offering Laws, and all applicable anti-bribery, anti-money laundering, customer due diligence, know your clients, and anti-terrorist laws and regulations, (B) it shall make any and all registrations, filings and pay any and all fees required by Offering Laws in connection with any Issuer has all power (corporate Offering or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Agreement. As the secondary trading of the Closing DateSecurities, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(bC) As of the Closing Date, all the Equity Support Shares will be duly authorized and, when any Securities issued and delivered to each Subscriber against full payment therefor in accordance with outstanding on the terms of this Equity Support Agreement, the Equity Support Shares will be validly issued, fully paid and non-assessable and will not date hereof have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum and articles of association (as in effect at such time of issuance) or under the Companies Act, as amended, of the Cayman Islands.
(c) This Equity Support Agreement has been duly authorized, executed validly issued and delivered by the Issuer andare fully paid and are non-assessable; and any Securities to be issued hereafter, assuming that this Equity Support Agreement constitutes the valid when issued, shall have been duly authorized, validly issued and binding agreement of each Subscriberfully paid and will be non-assessable, this Equity Support Agreement is enforceable against the Issuer in accordance with its terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or (ii) principles of equity, whether considered at law or equity.
(d) The issuance any Securities issued and sale by outstanding on the Issuer of all date hereof have been duly registered under the Equity Support Shares pursuant to this Equity Support AgreementSecurities Act, and the performance of its obligations hereunder and under each Pledge Agreement and Control Agreement and the transactions contemplated thereby, will not conflict with or result in a breach or violation of any of the terms or provisions ofsuch registration has become effective, or constitute a default under, or result in are exempt from such registration; and have been duly registered under the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”Exchange), or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any laware exempt from such registration, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have a Material Adverse Effect or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreement.
(e) As of their respective filing dates, all reports required any Securities to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13issued hereafter, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereofwhen issued, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any of the SEC Reports.
(f) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the issuance of the Equity Support Shares pursuant to this Equity Support Agreement, other than (i) filings with the SEC, (ii) filings required by applicable state securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support Agreement; (iv) those required by The Nasdaq Stock Market LLC, including with respect to obtaining approval of the Issuer’s stockholders, and (v) those the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(g) As of the date hereof, the Issuer has not received any written communication from a governmental authority that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(h) Assuming the accuracy of each Subscriber’s representations and warranties set forth in Section 6 of this Equity Support Agreement, no registration shall have been duly registered under the Securities Act of 1933Act, as amended (the “Securities Act”)and such registration shall have become effective, is required for the offer or shall be exempt from such registration; and sale of the Equity Support Shares by the Issuer to each Subscribers.
(i) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be shall have been duly registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Equity Support Shares.
(l) The Issuer is not, and the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall bebe exempt from such registration, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (iif) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly has paid or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected caused to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it paid all taxes, if any, that may arise were payable upon or in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors original issuance of the Issuer have concluded that (A) Securities issued and outstanding on the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) abovedate hereof.
Appears in 2 contracts
Samples: Platform Services, Transfer Agent and Registrar Agreement (Hygienic Dress League Corp), Platform Services, Transfer Agent and Registrar Agreement (Hygienic Dress League Corp)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers the Subscriber, as of the date hereof and as of the Closing Date, that:
(a) The Issuer has been duly incorporated and is an exempted company duly incorporated, validly existing and in good standing as a corporation under the laws of the Cayman Islands. The Issuer has all British Columbia, with corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As of the Closing Date, all the Equity Support Acquired Shares will be duly authorized and, when issued and delivered to each Subscriber against full payment therefor for the Acquired Shares in accordance with the terms of this Equity Support Subscription Agreement, the Equity Support Acquired Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any statutory or contractual preemptive or similar rights created under the Issuer’s memorandum and articles of association (as in effect at such time of issuance) or under the Companies Act, as amended, of the Cayman Islandsrights.
(c) This Equity Support Subscription Agreement, the Other Subscription Agreements and the Merger Agreement has (collectively, the “Transaction Documents”) have been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Agreement constitutes the valid and binding agreement of each Subscriber, this Equity Support Agreement is are enforceable against the Issuer in accordance with its their respective terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or and (ii) principles of equity, whether considered at law or equity.
(d) As of immediately prior to the Closing and after the stock split, the authorized share capital of the Issuer will consist of an unlimited number of Common Shares, of which 75,000,000 Common Shares will be issued and outstanding, and an unlimited number of preference shares in the capital of the Issuer (the “Preference Shares”), of which no Preferred Shares will be issued and outstanding. As of immediately prior to the Closing, all of the issued and outstanding Common Shares will have been duly authorized and validly issued and will be fully paid and non-assessable and have not been issued in violation of any preemptive or similar rights. Each Common Share will have been issued in compliance in all material respects with applicable law and the Issuer’s organizational documents (as in effect at the time of such issuance).
(e) The issuance execution and sale delivery by the Issuer of all the Equity Support Shares pursuant to this Equity Support AgreementTransaction Documents, and the performance by the Issuer of its obligations hereunder under the Transaction Documents, including the issuance and under each Pledge Agreement and Control Agreement sale of the Acquired Shares and the consummation of the other transactions contemplated therebyhereby, do not and will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreementsubject; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer Issuer, its subsidiaries or any of its properties properties, except, in the case of clauses (i) and (iii), for conflicts, breaches, violations, defaults, liens or encumbrances that would not result in an Issuer Material Adverse Effect. As used in this Subscription Agreement, “Issuer Material Adverse Effect” means any change, event, state of facts, development or occurrence that, individually or in the aggregate: (a) has had, or would reasonably be expected to have have, a Material Adverse Effect materially adverse effect on the business, assets, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole; or (b) that would materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under the terms of this Equity Support Subscription Agreement.
(e) As of their respective filing dates, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any of the SEC Reports.
(f) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the issuance of the Equity Support Shares pursuant to this Equity Support Agreement, other than (i) filings with the SEC, (ii) filings required by applicable state securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support Agreement; (iv) those required by The Nasdaq Stock Market LLC, including with respect to obtaining approval of the Issuer’s stockholders, and (v) those the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(g) As of the date hereof, the Issuer has not received any written communication from a governmental authority that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(h) Assuming the accuracy of each Subscriber’s representations and warranties set forth in Section 6 of this Equity Support Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Shares by the Issuer to each Subscribers.
(i) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Equity Support Shares.
(l) The Issuer is not, and the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 2 contracts
Samples: Subscription Agreement (Algoma Steel Group Inc.), Subscription Agreement (Legato Merger Corp.)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers the Subscriber that:
(a) The Issuer has been duly incorporated and is an exempted company duly incorporated, validly existing and as a corporation under the laws of Ontario, in good standing under the laws of Ontario (to the Cayman Islands. The Issuer has all extent such concept exists in such jurisdiction), with corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As of the Closing Date, all the Equity Support Acquired Shares will be duly authorized and, when issued and delivered to each Subscriber against full payment therefor for the Acquired Shares in accordance with the terms of this Equity Support Subscription Agreement, the Equity Support Acquired Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any statutory or contractual preemptive or similar rights created under the Issuer’s memorandum and articles of association (as in effect at such time of issuance) or under the Companies Act, as amended, of the Cayman Islandsrights.
(c) This Equity Support Subscription Agreement, the Other Subscription Agreements and the Business Combination Agreement has (collectively, the “Transaction Documents”) have been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Agreement constitutes the valid and binding agreement of each Subscriber, this Equity Support Agreement is are enforceable against the Issuer in accordance with its their respective terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or and (ii) principles of equity, whether considered at law or equity.
(d) The issuance and sale by Since the date of its formation, the Issuer has not owned any assets, carried on any business, conducted any operations or incurred any liabilities or obligations or has not hired any employee or independent contractor, other than the execution of all the Equity Support Shares pursuant to this Equity Support Agreement, the Business Combination Agreement and any documents contemplated thereby, the performance of its obligations hereunder and under each Pledge Agreement matters ancillary thereto.
(e) As of the date hereof, the authorized share capital of the Issuer consists of an unlimited number of Common Shares, of which one is issued and Control Agreement outstanding. Immediately following the Closing Date, all of the issued and outstanding Common Shares (i) will be duly authorized, validly issued, fully paid and non-assessable, (ii) will have been issued in compliance in all material respects with applicable law and (iii) will not have been issued in breach or violation of any preemptive rights or contract to which the Issuer is a party or bound. As of the date hereof and as of the Closing, the Issuer had and will have no outstanding long-term indebtedness (other than deferred underwriting fees and expenses deferred from Peridot’s initial public offering).
(f) The execution and delivery by the Issuer of the Transaction Documents, and the performance by the Issuer of its obligations under the Transaction Documents, including the issuance and sale of the Acquired Shares and the consummation of the other transactions contemplated therebyherein, do not and will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that subject, which would reasonably be expected to have have, individually or in the aggregate, a material adverse effect on the business, properties, financial condition condition, shareholders’ equity or results of operations of the Issuer and its subsidiaries, taken as a whole (a an “Issuer Material Adverse Effect”), ) or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under the terms of this Equity Support Subscription Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have a have, individually or in the aggregate, an Issuer Material Adverse Effect or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Subscription Agreement.
(eg) As There are no securities or instruments issued by or to which the Issuer is a party containing anti-dilution or similar provisions that will be triggered by the issuance of their respective filing dates(i) the Acquired Shares, all reports required (ii) the Common Shares to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect issued pursuant to any of Other Subscription Agreement or (iii) any securities to be issued pursuant to the SEC ReportsBusiness Combination Agreement, in each case, that have not been or will not be validly waived on or prior to the Closing Date.
(fh) The Issuer is not in default or violation (and no event has occurred which, with notice or the lapse of time or both, would constitute a default or violation) of any term, condition or provision of (i) the organizational documents of the Issuer, (ii) any loan or credit agreement, note, bond, mortgage, indenture, lease or other agreement, permit, franchise or license to which the Issuer is now a party or by which the Issuer’s properties or assets are bound or (iii) any statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties, except, in the case of clauses (ii) and (iii), for defaults or violations that have not had and would not be reasonably expected to have, individually or in the aggregate, an Issuer Material Adverse Effect.
(i) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the execution, delivery and performance by the Issuer of this Subscription Agreement (including, without limitation, the issuance of the Equity Support Shares pursuant to this Equity Support AgreementAcquired Shares), other than (i) filings with the SEC, (ii) filings required by applicable state or federal securities laws, (iiiii) the filings required in accordance with Section 16 of this Equity Support Agreement; 12(o), (iviii) those required by The Nasdaq the New York Stock Market LLCExchange (the “NYSE”), including with respect to obtaining approval of the Issuer’s stockholdersshareholder approval, and (viv) those the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a an Issuer Material Adverse Effect.
(gj) As of the date hereofClosing Date, the issued and outstanding Common Shares will be registered pursuant to Section 12(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and will be listed for trading on the NYSE. There is no suit, action, proceeding or investigation pending or, to the knowledge of the Issuer, threatened against the Issuer by the NYSE or the SEC with respect to any intention by such entity to deregister the Common Shares, or prohibit or terminate the listing of the Common Shares, on the NYSE. The Issuer has not received any written communication from a governmental authority taken no action that alleges that is designed to terminate the Issuer is not in compliance with or is in default or violation registration of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to have, individually or in the aggregate, a Material Adverse EffectCommon Shares under the Exchange Act.
(hk) Assuming the accuracy of each Subscriber’s representations and warranties set forth in Section 6 of this Equity Support Agreement5, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Acquired Shares by the Issuer to each SubscribersSubscriber in the manner contemplated by this Subscription Agreement.
(il) Neither the Issuer nor any person acting on its behalf has offered engaged or sold the Equity Support Shares by will engage in any form of general solicitation or general advertising in violation (within the meaning of Regulation D of the Securities Act.
(j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the any offer or sale of the Equity Support Acquired Shares.
(l) The Issuer is not, and the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 2 contracts
Samples: Subscription Agreement (Peridot Acquisition Corp.), Subscription Agreement (Peridot Acquisition Corp.)
Issuer Representations and Warranties. For the purposes of this Section 3, the term “Issuer” shall refer to (i) the Issuer as of the date hereof, and (ii) for the for purposes of the representations contained in subsections (f), (h) and (k of this Section 3 and to the extent such representations and warranties are made as of the Closing Date, the combined company after giving effect to the Transaction as of the Closing Date. The Issuer represents and warrants to each Subscribers thatSubscriber and the Placement Agents (as defined below) that as of the date hereof:
(a) The Issuer (i) has been duly incorporated and is an exempted company duly incorporated, validly existing and as a private limited company in good standing under the laws of Jersey, Channel Islands, (ii) has the Cayman Islands. The Issuer has all requisite corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct properties, to carry on its business as presently it is now being conducted and to enter into, deliver into and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, the Issuer will be and (iii) is duly incorporatedlicensed or qualified to conduct its business and, validly existing and if applicable, is in good standing under the laws of each jurisdiction (other than its jurisdiction of incorporation) in which the Cayman Islandsconduct of its business or the ownership of its properties or assets requires such license or qualification, except, with respect to the foregoing clause (iii), where the failure to be in good standing would not reasonably be expected to have a Company Material Adverse Effect.
(b) As of the Closing Date, all the Equity Support Subscribed Shares will be duly authorized and, when issued and delivered to each Subscriber against full payment therefor in accordance with the terms of this Equity Support Subscription Agreement, the Equity Support Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum and articles of association (as in effect at such time of issuance) or under the Companies Act, as amended, of the Cayman Islands.
(c) This Equity Support Agreement has been duly authorizedThe Subscribed Shares are not, executed and delivered by following the Issuer andClosing, assuming that this Equity Support Agreement constitutes will not be, subject to any Transfer Restriction. The term “Transfer Restriction” means any condition to or restriction on the valid and binding agreement ability of each Subscriberthe undersigned to pledge, this Equity Support Agreement is enforceable against the Issuer in accordance with its termssell, except as may be limited assign or otherwise affected transfer the Subscribed Shares under any organizational document, policy or agreement of, by or with the Issuer, but excluding (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights restrictions on transfer described in Section 5(e) of creditors generally, or (ii) principles of equity, whether considered at law or equity.
(d) The issuance and sale by the Issuer of all the Equity Support Shares pursuant to this Equity Support Agreement, and the performance of its obligations hereunder and under each Pledge Subscription Agreement and Control Agreement and the transactions contemplated thereby, will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have a Material Adverse Effect or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreement.
(e) As of their respective filing dates, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any the status of the SEC Reports.
(f) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or Ordinary Shares as “restricted securities” pending their registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the issuance of the Equity Support Shares pursuant to this Equity Support Agreement, other than (i) filings with the SEC, (ii) filings required by applicable state securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support Agreement; (iv) those required by The Nasdaq Stock Market LLC, including with respect to obtaining approval of the Issuer’s stockholders, and (v) those the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(g) As of the date hereof, the Issuer has not received any written communication from a governmental authority that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(h) Assuming the accuracy of each Subscriber’s representations and warranties set forth in Section 6 of this Equity Support Agreement, no registration for resale under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Shares by the Issuer to each Subscribers.
(i) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission in connection accordance with the sale terms of the Equity Support Shares.
(l) The Issuer is notthis Subscription Agreement, and the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for compliance with routine transfer registration provisions under the purposes of Cayman Islands law, is Issuer’s organizational documents and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit agreements and policies of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o)’s transfer agent.
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 2 contracts
Samples: Subscription Agreement (Metals Acquisition LTD), Subscription Agreement (Metals Acquisition Corp)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers that:
(a) The Issuer is an exempted company duly incorporated, a corporation registered and validly existing and in good standing under the laws of the Cayman Islands. The Issuer has all Corporations Act, with corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As The Subscriber will acquire at the Subscription Closing (i) the full legal and beneficial ownership of the Closing DateAcquired Shares free and clear of all encumbrances, all subject to the Equity Support registration of the Subscriber in the register of shareholders; (ii) the Acquired Shares will be that have been duly authorized andand validly issued by the Issuer; (iii) the Acquired Shares free of competing rights, when issued including pre-emptive rights or rights of first refusal; and delivered to each Subscriber against (iv) the Acquired Shares that are fully paid and have no money owing in respect of them (assuming full payment therefor in accordance with the terms of this Equity Support Subscription Agreement, the Equity Support Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum and articles of association (as in effect at such time of issuance) or under the Companies Act, as amended, of the Cayman Islands).
(c) This Equity Support Subscription Agreement has and the Business Combination Agreement (collectively, the “Transaction Documents”) have been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Agreement constitutes Issuer. The Transaction Documents constitute the valid and legally binding agreement obligation of each Subscriberthe Issuer, this Equity Support Agreement is enforceable against the Issuer in accordance with its their terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or and (ii) principles of equity, whether considered at law or equity.
(d) The issuance Assuming the accuracy of Subscriber’s representations and sale warranties set forth in Section 4 of this Subscription Agreement, the execution and delivery by the Issuer of all the Equity Support Shares pursuant to this Equity Support AgreementTransaction Documents, and the performance by the Issuer of its obligations hereunder under the Transaction Documents, including the issuance and under each Pledge Agreement and Control Agreement sale of the Acquired Shares and the consummation of the other transactions contemplated thereby, herein and therein do not and will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that subject, which would reasonably be expected to have have, individually or in the aggregate, a material adverse effect on the businessIssuer’s ability to consummate the transactions contemplated by this Subscription Agreement (in each case, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), ) or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under the terms of this Equity Support Subscription Agreement; (ii) result in any violation the constitution of the provisions of Issuer as amended or varied from time to time (the “Constitution”) or other organizational documents (as applicable) of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have have, individually or in the aggregate, a Material Adverse Effect or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Subscription Agreement.
(e) As of their respective filing dates, all reports required to be filed by Except for the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereofConvertible Notes, there are no material outstanding securities or unresolved comments in comment letters received instruments issued by or to which the Issuer is a party containing anti-dilution or similar provisions that will be triggered by the Issuer from issuance of (i) the staff of Acquired Shares or (ii) the Division of Corporation Finance of the SEC with respect Ordinary Shares to be issued pursuant to any of Other Subscription Agreement, in each case, that have not been or will not be validly waived on or prior to the SEC ReportsClosing Date.
(f) The Assuming the accuracy of Subscriber’s representations and warranties set forth in Section 5 of this Subscription Agreement, the Issuer is not in default or violation (and no event has occurred which, with notice or the lapse of time or both, would constitute a default or violation) of any term, condition or provision of (i) the organizational documents of the Issuer, (ii) any loan or credit agreement, guarantee, note, bond, mortgage, indenture, lease or other agreement, permit, franchise or license to which the Issuer is now a party or by which the Issuer’s properties or assets are bound or (iii) any statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties, except, in the case of clauses (ii) and (iii), for defaults or violations that have not had and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(g) Assuming the accuracy of Subscriber’s representations and warranties set forth in Section 4 of this Subscription Agreement, the Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the execution, delivery and performance by the Issuer of this Subscription Agreement (including, without limitation, the issuance of the Equity Support Shares pursuant to this Equity Support AgreementAcquired Shares), other than (i) filings the filing with the SECCommission of the Registration Statement (as defined below), (ii) filings required by applicable U.S. state or federal or Australian securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support Agreement; by the Exchange, and (iv) those required by The Nasdaq Stock Market LLCconsents or filings, including with respect to obtaining approval of the Issuer’s stockholders, and (v) those the failure of which to obtain or file would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(gh) As of immediately prior to the Closing Date, the share capital of the Issuer comprises 25,129,140 Ordinary Shares and 80 outstanding shares granted under the Issuer’s MEP. All issued Ordinary Shares have been duly authorized and validly issued, are fully paid and are not subject to preemptive rights. Except as set forth above and pursuant to the Other Subscription Agreements, the Business Combination Agreement or the MEP Deed, there are no outstanding options, warrants or other rights to subscribe for, purchase or acquire from the Issuer any Ordinary Shares or other equity interests in the Issuer, or securities convertible into or exchangeable or exercisable for such equity interests. Other than Merger Sub, NWQHPP Pty Ltd, Vast Solar Consulting Pty Ltd, Vast Solar Pty 1 Ltd, Vast Solar Aurora Pty Ltd and Silicon Aurora Pty Ltd as of the date hereof, the Issuer has no subsidiaries and does not own, directly or indirectly, interests or investments (whether equity or debt) in any person, whether incorporated or unincorporated. There are no shareholder agreements, voting trusts or other agreements or understandings to which the Issuer is a party or by which it is bound relating to the voting of any securities of the Issuer, other than as contemplated by the Business Combination Agreement. Notwithstanding the foregoing, after the date of this Subscription Agreement and before the Subscription Closing, certain other investors may enter into subscription agreements with the Issuer substantially similar to this Subscription Agreement, pursuant to which such investors (the “Future Subscribers”) would agree to subscribe for and purchase, and the Issuer would agree to issue and sell to such Future Subscribers, on the Closing Date, Ordinary Shares at the Share Purchase Price.
(i) The Issuer has not received any written communication from a governmental authority that alleges entity alleging that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
(j) Assuming the accuracy of Subscriber’s representations and warranties set forth in Section 4 of this Subscription Agreement, no registration under the Securities Act or “disclosure to investors” within the meaning of Chapter 6D of the Corporations Act is required for the offer and issue of the Acquired Shares by the Issuer to Subscriber in the manner contemplated by this Subscription Agreement.
(k) Neither the Issuer nor any person acting on its behalf has engaged or will engage in any form of general solicitation or general advertising (within the meaning of Regulation D of the Securities Act) in connection with any offer or sale of the Acquired Shares.
(l) The Issuer has not entered into any side letter or similar agreement with any other subscriber pursuant to Other Subscription Agreements or any other investor in connection with such investor’s direct or indirect investment in the Issuer other than (i) the Business Combination Agreement, (ii) the Other Subscription Agreements, (iii) Additional Notes Subscription Agreements, (iv) agreements or forms thereof that have been publicly filed via the Commission’s EXXXX system, including filings made by either NETC or the Issuer, and (v) contracts with respect to the sale, supply, marketing or distribution of goods or services by operating companies. No Other Subscription Agreement (other than any Other Subscription Agreements entered into by investment companies registered under the Investment Company Act or investors advised by an investment adviser subject to regulation under the Investment Advisers Act solely to the extent contemplated by Section 2(a) hereof) contains terms (economic or otherwise) more favorable in any material respect to any such other subscribers than as set forth in this Subscription Agreement, [other than (i) the Subscription Agreement, dated as of February [13], 2023, by and between the Issuer and [Nxxxxx Lux 2 S.a.r.l.] and (ii) the Subscription Agreement, dated as of February [13], 2023, by and between the Issuer and [AgCentral Energy Pty Ltd].]
(m) There is no (i) suit, action, proceeding, or arbitration pending, or, to the Issuer’s knowledge, threatened against the Issuer or (ii) judgment, decree, injunction, ruling or order of any governmental entity or arbitrator outstanding against the Issuer, except for such matters as have not had and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(hn) Assuming the accuracy of each SubscriberThe Issuer has not paid, and is not obligated to pay, any brokerage, finder’s representations and warranties set forth or other commission or similar fee in Section 6 of this Equity Support Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer connection with its issuance and sale of the Equity Support Acquired Shares by to the Issuer to each SubscribersSubscriber.
(io) Neither None of the Issuer Issuer, its subsidiaries or any of their affiliates, nor any person acting on its their behalf has offered has, directly or sold indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would require registration of the Equity Support issuance of any of the Acquired Shares by any form of general solicitation or general advertising in violation under the Securities Act, whether through integration with prior offerings pursuant to Rule 502(a) of the Securities Act or otherwise or “disclosure to investors” within the meaning of Chapter 6D of the Corporations Act.
(j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(kp) The Issuer is and its affiliates will not under any obligation to pay any broker’s fee directly or commission in connection with indirectly use the proceeds of the sale of the Equity Support Acquired Shares, or lend, contribute or otherwise make available such proceeds to a subsidiary, joint venture partner or other person or entity (i) to fund a person or entity named on an OFAC List (as defined below), (ii) that is owned or controlled by, or acting on behalf of, a person, that is named on an OFAC List, (iii) that is organized, incorporated, established, located, resident or born in, or a citizen, national, or the government, including any political subdivision, agency, or instrumentality thereof, of, Cuba, Iran, North Korea, Syria, Russia, the Crimea region of Ukraine, or any other country or territory embargoed or subject to substantial trade restrictions by the United States, (iv) that is a Designated National as defined in the Cuban Assets Control Regulations, 31 C.F.R. Part 515 or (v) that is a non-U.S. shell bank or providing banking services indirectly to a non-U.S. shell bank.
(lq) The Issuer is not, and immediately after receipt of payment by the Issuer after for the consummation of the transaction contemplated hereby, Acquired Shares will not be required to register as be, an “investment company” as such term is defined in within the meaning of the Investment Company Act of 1940, as amended.
(mr) The Issuer isEach form, report, statement, schedule, prospectus, proxy, registration statement and other document, if any, filed by the Issuer after with the consummation of the transaction contemplated hereby will beCommission, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and if any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder SEC Documents”) and/or ), as of their respective advisors (collectivelyfiling dates, complied in all material respects with the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit applicable requirements of the IssuerExchange Act, Securities Act, and the SPAC, applicable rules and regulations of the shareholders Commission promulgated thereunder. None of the Issuer SEC Documents (except to the extent that information contained in any Issuer SEC Document has been superseded by a later filed Issuer SEC Document) contained, when filed, any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the shareholders statements therein not misleading, in the case of any Issuer SEC Document that is a registration statement, or included, when filed, any untrue statement of a material fact or omitted to state a material fact necessary to make the statements therein, in the light of the SPAC. For the avoidance of doubtcircumstances under which they were made, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interestsmisleading, in light the case of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the all other Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) aboveSEC Documents.
Appears in 2 contracts
Samples: Subscription Agreement (Nabors Energy Transition Corp.), Subscription Agreement (Nabors Energy Transition Corp.)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers that:
(a) a. The Issuer has been duly incorporated and is an exempted company duly incorporated, validly existing and as a corporation in good standing under the laws of the Cayman Islands. The Issuer has all State of Delaware, with corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As of the Closing Date, all the Equity Support b. The Acquired Shares will be have been duly authorized and, when issued and delivered to each Subscriber against full payment therefor for the Acquired Shares in accordance with the terms of this Equity Support Subscription Agreement, the Equity Support Acquired Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum certificate of incorporation and articles of association (as in effect at such time of issuance) bylaws or under the Companies Act, as amended, laws of the Cayman IslandsState of Delaware.
c. This Subscription Agreement, the Other Subscription Agreements and the Combination Agreement (ccollectively, the “Transaction Documents”) This Equity Support Agreement has have been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Agreement constitutes the valid and binding agreement of each Subscriber, this Equity Support Agreement is are enforceable against the Issuer in accordance with its their respective terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or and (ii) principles of equity, whether considered at law or equity.
(d) The issuance d. Assuming the accuracy of Subscriber’s representations and sale warranties in Section 4, the execution and delivery by the Issuer of all the Equity Support Shares pursuant to this Equity Support AgreementTransaction Documents, and the performance by the Issuer of its obligations hereunder under the Transaction Documents, including the issuance and under each Pledge Agreement and Control Agreement sale of the Acquired Shares and the consummation of the other transactions contemplated therebyherein, do not and will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that subject, which would be reasonably be expected to have have, individually or in the aggregate, a material adverse effect on the business, properties, financial condition condition, stockholders’ equity or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), ) or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under the terms of this Equity Support Subscription Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would be reasonably be expected to have have, individually or in the aggregate, a Material Adverse Effect or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Subscription Agreement.
e. There are no securities or instruments issued by or to which the Issuer is a party containing anti-dilution or similar provisions that will be triggered by the issuance of (ei) As of their respective filing dates, all reports required the Acquired Shares or (ii) the Class A Shares to be filed by issued pursuant to any Other Subscription Agreement, in each case, that have not been or will not be validly waived on or prior to the Closing Date.
f. The Issuer is not in default or violation (and no event has occurred which, with notice or the lapse of time or both, would constitute a default or violation) of any term, condition or provision of (i) the organizational documents of the Issuer, (ii) any loan or credit agreement, note, bond, mortgage, indenture, lease or other agreement, permit, franchise or license to which the Issuer with is now a party or by which the U.S. Securities and Exchange Commission Issuer’s properties or assets are bound, or (the “SEC”iii) since January 13any statute or any judgment, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements order, rule or regulation of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereofany court or governmental agency or body, there are no material outstanding domestic or unresolved comments in comment letters received by foreign, having jurisdiction over the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to or any of its properties, except, in the SEC Reportscase of clauses (ii) and (iii), for defaults or violations that have not had and would not be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect.
(f) The g. Assuming the accuracy of Subscriber’s representations and warranties in Section 4, the Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the execution, delivery and performance by the Issuer of this Subscription Agreement (including, without limitation, the issuance of the Equity Support Shares pursuant to this Equity Support AgreementAcquired Shares), other than (i) filings the filing with the SECSecurities and Exchange Commission (the “Commission”) of the Registration Statement (as defined below), (ii) filings required by applicable state or federal securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support Agreement; 10(m), (iv) those required by The Nasdaq the New York Stock Market LLCExchange (the “NYSE”), including with respect to obtaining approval of the Issuer’s stockholdersstockholder approval, and (v) those the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse EffectEffect or have a material adverse effect on the Issuer’s ability to consummate the transactions contemplated hereby, including the sale and issuance of the Acquired Shares.
h. The authorized capital stock of the Issuer consists of (gi) 1,000,000 shares of preferred stock, par value $0.0001 per share (“Preferred Stock”), (ii) 250,000,000 Class A Shares, and (iii) 20,000,000 shares of Class B common stock, par value $0.0001 per share (“Class B Shares”). As of the date hereofhereof and as of immediately prior to the Closing: (1) no shares of Preferred Stock are issued and outstanding, (2) 34,500,000 Class A Shares are issued and outstanding, (3) 8,625,000 Class B Shares are issued and outstanding, and (4) 27,150,000 warrants, each entitling the holder thereof to purchase one Class A Share at an exercise price of $11.50 per Class A Share, are outstanding.
i. The Issuer has not received any written communication communication, from a governmental authority entity that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not, individually or in the aggregate, be reasonably expected to have a Material Adverse Effect.
j. The issued and outstanding Class A Shares are registered pursuant to Section 12(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and are listed for trading on the NYSE. There is no suit, action, proceeding or investigation pending or, to the knowledge of the Issuer, threatened against the Issuer by the NYSE or the Commission with respect to any intention by such entity to deregister the Class A Shares or prohibit or terminate the listing of the Class A Shares on the NYSE. The Issuer has taken no action that is designed to terminate the registration of the Class A Shares under the Exchange Act.
k. Assuming the accuracy of Subscriber’s representations and warranties set forth in Section 4, no registration under the Securities Act is required for the offer and sale of the Acquired Shares by the Issuer to Subscriber in the manner contemplated by this Subscription Agreement.
l. Neither the Issuer nor any person acting on its behalf has engaged or will engage in any form of general solicitation or general advertising (within the meaning of Regulation D of the Securities Act) in connection with any offer or sale of the Acquired Shares.
m. The Issuer has not entered into any side letter or similar agreement with any Other Subscriber or any other investor in connection with such Other Subscriber’s or such other investor’s direct or indirect investment in the Issuer other than (i) the Combination Agreement, (ii) the Other Subscription Agreements; provided, that no Other Subscription Agreement included a purchase price per share that is lower than the Share Purchase Price, and (iii) that certain letter agreement, dated November 24, 2020, by and among the Issuer and the other parties thereto. The Other Subscription Agreements have not been amended in any material respect following the date of this Subscription Agreement and reflect the same Share Purchase Price and terms that are no more favorable to any such Other Subscriber thereunder than the terms of this Subscription Agreement.
n. The Issuer has made available to Subscriber (including via the Commission’s XXXXX system) a copy of each form, report, statement, schedule, prospectus, proxy, registration statement and other document, if any, filed by the Issuer with the Commission since its initial registration of the Class A Shares (the “SEC Documents”), which SEC Documents, as of their respective filing dates, complied in all material respects with the requirements of the Exchange Act applicable to the SEC Documents and the rules and regulations of the Commission promulgated thereunder applicable to the SEC Documents. None of the SEC Documents filed under the Exchange Act (except to the extent that information contained in any SEC Document has been superseded by a later timely filed SEC Document) contained, when filed any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; provided, that, with respect to the proxy statement to be filed by the Issuer with respect to the Transaction or any of its affiliates included in any SEC Document or filed as an exhibit thereto, the representation and warranty in this sentence is made to the Issuer’s knowledge. The Issuer has timely filed each report, statement, schedule, prospectus, and registration statement that the Issuer was required to file with the Commission since its inception. There are no material outstanding or unresolved comments in comment letters from the Staff of the Commission with respect to any of the SEC Documents.
o. Except for such matters as have not had and would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, there is no (i) suit, action, proceeding or arbitration before a governmental authority or arbitrator pending, or, to the knowledge of the Issuer, threatened against the Issuer or (ii) judgment, decree, injunction, ruling or order of any governmental entity or arbitrator outstanding against the Issuer.
p. Except for placement fees payable to Credit Suisse Securities (hUSA) Assuming the accuracy of each Subscriber’s representations LLC, Citigroup Global Markets Inc. and warranties set forth Xxxxx and Company, LLC, in Section 6 of this Equity Support Agreement, no registration under the Securities Act of 1933, their capacity as amended (the “Securities Act”), is required placement agents for the offer and sale of the Equity Support Acquired Shares by (in such capacity, the “Placement Agents”), the Issuer has not paid, and is not obligated to each Subscriberspay, any brokerage, finder’s or other commission or similar fee in connection with its issuance and sale of the Acquired Shares, including, for the avoidance of doubt, any fee or commission payable to any stockholder or affiliate of the Issuer.
(i) Neither q. None of the Issuer Issuer, its subsidiaries or any of their affiliates, nor any person acting on its their behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Equity Support Shares.
(l) The Issuer is not, and the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have nothas, directly or indirectly, negotiated made any offers or entered into an Excluded Financing with sales of any other parties for the benefit security or solicited any offers to buy any security, under circumstances that would require registration of the Issuer, the SPAC, the shareholders issuance of any of the Issuer or Acquired Shares under the shareholders Securities Act, whether through integration with prior offerings pursuant to Rule 502(a) of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o)Securities Act or otherwise.
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 2 contracts
Samples: Business Combination Agreement (Spartan Acquisition Corp. II), Subscription Agreement (Spartan Acquisition Corp. II)
Issuer Representations and Warranties. For the purposes of this Section 3, the term “Issuer” shall refer to (i) the Issuer as of the date hereof, and (ii) for the for purposes of the representations contained in subsections (f), (h) and (k) of this Section 3 and to the extent such representations and warranties are made as of the Closing Date, the combined company after giving effect to the Transaction as of the Closing Date. The Issuer represents and warrants to each Subscribers thatSubscriber and the Placement Agents (as defined below) that as of the date hereof:
(a) The Issuer (i) has been duly incorporated and is an exempted company duly incorporated, validly existing and as a private limited company in good standing under the laws of Jersey, Channel Islands, (ii) has the Cayman Islands. The Issuer has all requisite corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct properties, to carry on its business as presently it is now being conducted and to enter into, deliver into and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, the Issuer will be and (iii) is duly incorporatedlicensed or qualified to conduct its business and, validly existing and if applicable, is in good standing under the laws of each jurisdiction (other than its jurisdiction of incorporation) in which the Cayman Islandsconduct of its business or the ownership of its properties or assets requires such license or qualification, except, with respect to the foregoing clause (iii), where the failure to be in good standing would not reasonably be expected to have a Company Material Adverse Effect.
(b) As of the Closing Date, all the Equity Support Subscribed Shares will be duly authorized and, when issued and delivered to each Subscriber against full payment therefor in accordance with the terms of this Equity Support Subscription Agreement, the Equity Support Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum and articles of association (as in effect at such time of issuance) or under the Companies Act, as amended, of the Cayman Islands.
(c) This Equity Support Agreement has been duly authorizedThe Subscribed Shares are not, executed and delivered by following the Issuer andClosing, assuming that this Equity Support Agreement constitutes will not be, subject to any Transfer Restriction. The term “Transfer Restriction” means any condition to or restriction on the valid and binding agreement ability of each SubscriberSubscriber to pledge, this Equity Support Agreement is enforceable against the Issuer in accordance with its termssell, except as may be limited assign or otherwise affected transfer the Subscribed Shares under any organizational document, policy or agreement of, by or with the Issuer, but excluding (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights restrictions on transfer described in Section 5(e) of creditors generally, or (ii) principles of equity, whether considered at law or equity.
(d) The issuance and sale by the Issuer of all the Equity Support Shares pursuant to this Equity Support Agreement, and the performance of its obligations hereunder and under each Pledge Subscription Agreement and Control Agreement and the transactions contemplated thereby, will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have a Material Adverse Effect or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreement.
(e) As of their respective filing dates, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any the status of the SEC Reports.
(f) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or Ordinary Shares as “restricted securities” pending their registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the issuance of the Equity Support Shares pursuant to this Equity Support Agreement, other than (i) filings with the SEC, (ii) filings required by applicable state securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support Agreement; (iv) those required by The Nasdaq Stock Market LLC, including with respect to obtaining approval of the Issuer’s stockholders, and (v) those the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(g) As of the date hereof, the Issuer has not received any written communication from a governmental authority that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(h) Assuming the accuracy of each Subscriber’s representations and warranties set forth in Section 6 of this Equity Support Agreement, no registration for resale under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Shares by the Issuer to each Subscribers.
(i) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission in connection accordance with the sale terms of the Equity Support Shares.
(l) The Issuer is notthis Subscription Agreement, and the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for compliance with routine transfer registration provisions under the purposes of Cayman Islands law, is Issuer’s organizational documents and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit agreements and policies of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o)’s transfer agent.
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 2 contracts
Samples: Subscription Agreement (Metals Acquisition Corp), Subscription Agreement (Metals Acquisition Corp)
Issuer Representations and Warranties. For purposes of this Section 4, the term “Issuer” shall refer to the Issuer as of the date hereof and, for purposes of only representations contained in paragraphs (h), (i), (k), (n), (p),and (r) of this Section 4 and to the extent such representations and warranties are made as of the Closing Date, the combined company after giving effect to the Acquisition. The Issuer represents and warrants to each Subscribers that:
(a) The Issuer has been duly incorporated and is an exempted company duly incorporated, validly existing and as a corporation in good standing under the laws of the Cayman Islands. The Issuer has all State of Delaware, with corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, the Issuer will be duly incorporated, validly existing Registration Rights Agreement (as defined below) and in good standing under the laws of the Cayman IslandsPurchase Agreement.
(b) As of the Closing Date, all the Equity Support The Acquired Shares will be have been duly authorized and, when issued and delivered to each Subscriber against full payment therefor for the Acquired Shares in accordance with the terms of this Equity Support AgreementSubscription Agreement and duly registered, the Equity Support Acquired Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum amended and articles restated certificate of association (as in effect at such time of issuance) incorporation and bylaws or under the Companies Act, as amended, laws of the Cayman IslandsState of Delaware.
(c) The maximum number of Common Shares issuable upon conversion of the Preferred Shares pursuant to the Subscriber’s Preferred Subscription have been duly authorized and reserved and, when such Common Shares are issued upon conversion of such Preferred Shares in accordance with the terms thereof, will be validly issued, fully paid and non-assessable, and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s amended and restated certificate of incorporation and bylaws or under the laws of the State of Delaware.
(d) This Equity Support Subscription Agreement has and the Purchase Agreement have been duly authorized, executed and delivered by the Issuer andIssuer, assuming that this Equity Support Agreement and each constitutes the a legal valid and binding agreement obligation of each Subscriberthe Issuer , this Equity Support Agreement is enforceable against the Issuer it in accordance with its terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or and (ii) principles of equity, whether considered at law or equity.
(de) The Registration Rights Agreement will constitute upon execution and delivery by the Issuer a legal valid and binding obligation of the Issuer enforceable against it in accordance with its terms except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, and (ii) principles of equity, whether considered at law or equity.
(f) The execution, delivery and performance of this Subscription Agreement, the Registration Rights Agreement and the Purchase Agreement (including compliance by the Issuer with all of the provisions hereof and thereof), the issuance and sale by of the Issuer of all the Equity Support Acquired Shares pursuant to this Equity Support Agreement, and the performance consummation of its obligations hereunder the other transactions contemplated herein and under each Pledge in the Registration Rights Agreement and Control Purchase Agreement and the transactions contemplated thereby, will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that subject, which would reasonably be expected to have a material adverse effect Material Adverse Effect (as defined in the Purchase Agreement) on the business, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), NRC or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under the terms of this Equity Support Subscription Agreement, the Registration Rights Agreement or the Purchase Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have a Material Adverse Effect (as defined in the Purchase Agreement) or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Subscription Agreement, the Registration Rights Agreement or the Purchase Agreement.
(eg) As of their respective filing dates, all reports required There are no securities or instruments issued by or to be filed by which the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As is a party as of the date hereof, there are no material outstanding hereof containing anti-dilution or unresolved comments in comment letters received similar provisions that will be triggered by the Issuer from the staff issuance of the Division of Corporation Finance of Acquired Shares that have not been or will not be validly waived on or prior to the SEC with respect to any of the SEC ReportsClosing Date.
(fh) The Issuer is not in default or violation (and no event has occurred which, with notice or the lapse of time or both, would constitute a default or violation) of any term, condition or provision of (i) the organizational documents of the Issuer, (ii) any loan or credit agreement, note, bond, mortgage, indenture, lease or other agreement, permit, franchise or license to which the Issuer is now a party or by which the Issuer’s properties or assets are bound or (iii) any statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties, except, in the case of clauses (ii) and (iii), for defaults or violations that have not had and would not be reasonably likely to have, individually or in the aggregate, a Material Adverse Effect (as defined in the Purchase Agreement).
(i) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the execution, delivery and performance by the Issuer of this Subscription Agreement (including, without limitation, the issuance of the Equity Support Shares pursuant to this Equity Support Acquired Shares), the Registration Rights Agreement or the Purchase Agreement, other than (i) filings with the SEC, including the Proxy Statement, the Registration Statement (as defined below) and any Current Reports on Form 8-K relating to the Acquisition, (ii) filings required by applicable state securities laws, (iii) the filings filing required in accordance with Section 16 11(p) of this Equity Support Subscription Agreement; (iv) those required by The Nasdaq the New York Stock Market LLCExchange with respect to the NYSE American (f/k/a NYSE MKT) market (the “NYSE”), including with respect to obtaining approval Issuer stockholder approval, (v) the filing of the Issuer’s stockholders, Certificate of Designations with the Secretary of State of the State of Delaware and (vvi) those the failure of which to obtain would not be reasonably be expected likely to have, individually or in the aggregate, a Material Adverse Effect.
(gj) The authorized capital stock of the Issuer consists of (i) 1,000,000 undesignated Preferred Shares and (ii) 200,000,000 Common Shares. As of the date hereof: (i) no Preferred Shares are issued and outstanding, (ii) 32,081,250 Common Shares are issued and outstanding and (iii) 19,248,750 redeemable public purchase warrants and 9,600,000 private placement warrants are outstanding. As of the Closing Date, and subject to approval by the Issuer’s stockholders, the authorized capital stock of the Issuer will consist of (i) 5,000,000 Preferred Shares, at least 1,300,000 of which will be designated as 7.00% Series A Convertible Cumulative Preferred Stock, and (ii) 200,000,000 Common Shares.
(k) The Issuer has not received any written communication since March 31, 2018 from a governmental authority entity that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not, individually or in the aggregate, be reasonably likely to have a Material Adverse Effect (as defined in the Purchase Agreement).
(l) The Common Shares are registered pursuant to Section 12(b) of the Exchange Act and are listed for trading on the NYSE American under the symbol “HCAC.” There is no suit, action, proceeding or investigation pending or, to the knowledge of the Issuer, threatened against the Issuer by the NYSE or the SEC with respect to any intention by such entity to deregister the Common Shares or prohibit or terminate the listing of the Common Shares on the NYSE American. The Issuer has taken no action that is designed to terminate the registration of the Common Shares under the Exchange Act.
(m) The NYSE American will have approved the issuance of the Preferred Shares prior to the Closing Date.
(n) Assuming the accuracy of Subscriber’s representations and warranties set forth in Section 5 of this Subscription Agreement, no registration under the Securities Act is required for the offer and sale of the Acquired Shares by the Issuer to Subscriber.
(o) Neither the Issuer nor any person acting on its behalf has engaged or will engage in any form of general solicitation or general advertising (within the meaning of Regulation D of the Securities Act) in connection with any offer or sale of the Acquired Shares.
(p) As of the date hereof, the Issuer has not entered into any side letter or similar agreement with any other investor in connection with such other investor’s direct or indirect investment in the Issuer other than (x) the Purchase Agreement and (y) that certain Subscription Agreement, dated as of the date hereof, with X.X. Xxxxxx & Company, LLC.
(q) The Issuer has made available to Subscriber (including via the SEC’s XXXXX system) a copy of each form, report, statement, schedule, prospectus, proxy, registration statement and other document, if any, filed by the Issuer with the SEC since its initial registration of the Common Shares (the “SEC Documents”). None of the SEC Documents filed under the Exchange Act contained, when filed or, if amended, as of the date of such amendment with respect to those disclosures that are amended, included any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. The Issuer has timely filed each report, statement, schedule, prospectus, and registration statement that the Issuer was required to file with the SEC since its inception. There are no material outstanding or unresolved comments in comment letters from the SEC Staff with respect to any of the SEC Documents.
(r) Except for such matters as have not had and would not be reasonably be expected likely to have, individually or in the aggregate, a Material Adverse EffectEffect (as defined in the Purchase Agreement), there is no (i) action, lawsuit, claim, suit, arbitration, hearing, examination or judicial or legal proceeding or investigation, whether civil, criminal or administrative, at law or in equity, or by or before any governmental authority pending, or, to the knowledge of the Issuer, threatened against the Issuer or (ii) judgment, decree, injunction, ruling or order of any governmental entity or arbitrator outstanding against the Issuer.
(hs) Assuming Except for placement agent fees payable to Credit Suisse Securities (USA) LLC (“Credit Suisse”) and Xxxxxx, Xxxxxxxx & Company, Incorporated (“Stifel,” and together with Credit Suisse, in their respective capacities as placement agents with respect to the accuracy of each Subscriber’s representations and warranties set forth in Section 6 of this Equity Support Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer issuance and sale of the Equity Support Shares by the Issuer to each Subscribers.
(i) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction ClosingAcquired Shares, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b“Placement Agents”) of the Exchange Act. Following at the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer has not paid, and is not under obligated to pay, any obligation to pay any brokerbrokerage, finder’s or other fee or commission in connection with the its issuance and sale of the Equity Support Acquired Shares.
(l) The Issuer is not, and the Issuer after the consummation of the transaction contemplated herebyincluding, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, any fee or commission payable to any stockholder or affiliate of the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o)Issuer.
(pt) The Proxy Statement, when filed or, if amended, as of the date of such amendment with respect to those disclosures that are amended, will not include any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.
(u) As of the date hereof, each all representations and warranties of NRC and NRC Seller that are contained in the Issuer Purchase Agreement are true and correct in all material respects, to the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors knowledge of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) aboveinquiry.
Appears in 2 contracts
Samples: Backstop and Subscription Agreement, Backstop and Subscription Agreement (Hennessy Capital Acquisition Corp. III)
Issuer Representations and Warranties. For the purposes of this Section 3, the term “Issuer” shall refer to (i) the Issuer as of the date hereof, and (ii) for the for purposes of the representations contained in subsections (f), (h) and (k) of this Section 3 and to the extent such representations and warranties are made as of the Closing Date, the combined company after giving effect to the Transaction as of the Closing Date. The Issuer represents and warrants to each Subscribers thatEquity Subscriber, Warrant Subscriber and the Placement Agents (as defined below) that as of the date hereof:
(a) The Issuer (i) has been duly incorporated and is an exempted company duly incorporated, validly existing and as a private limited company in good standing under the laws of Jersey, Channel Islands, (ii) has the Cayman Islands. The Issuer has all requisite corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct properties, to carry on its business as presently it is now being conducted and to enter into, deliver into and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, the Issuer will be and (iii) is duly incorporatedlicensed or qualified to conduct its business and, validly existing and if applicable, is in good standing under the laws of each jurisdiction (other than its jurisdiction of incorporation) in which the Cayman Islandsconduct of its business or the ownership of its properties or assets requires such license or qualification, except, with respect to the foregoing clause (iii), where the failure to be in good standing would not reasonably be expected to have a Company Material Adverse Effect.
(b) As of the Closing Date, all the Equity Support Subscribed Shares will be duly authorized and, when issued and delivered to each Equity Subscriber against full payment therefor in accordance with the terms of this Equity Support Subscription Agreement, the Equity Support Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum and articles of association (as in effect at such time of issuance) or under the Companies Act, as amended, of the Cayman Islands.
(c) This Equity Support Agreement has been As of the Closing Date, the Warrants (as defined below) will be duly authorizedauthorized and, executed when issued and delivered by to Warrant Subscriber against full payment therefor in accordance with the Issuer andterms of this Subscription Agreement, assuming that this Equity Support Agreement constitutes will be validly issued and constitute the valid and binding agreement obligation of each Subscriberthe Issuer, this Equity Support Agreement is enforceable against the Issuer in accordance with its terms, except as such enforceability may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other and similar laws relating to or affecting creditors generally and by the rights availability of creditors generally, or (ii) principles of equity, whether considered at law or equityequitable remedies.
(d) The issuance Subscribed Shares and sale by the Issuer of all the Equity Support Shares pursuant to this Equity Support AgreementWarrants are not, and following the performance of its obligations hereunder and under each Pledge Agreement and Control Agreement and the transactions contemplated therebyClosing, will not conflict with be, subject to any Transfer Restriction. The term “Transfer Restriction” means any condition to or result in a breach or violation of any restriction on the ability of the terms undersigned to pledge, sell, assign or provisions otherwise transfer the Subscribed Shares or Warrants under any organizational document, policy or agreement of, by or constitute a default underwith the Issuer, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of but excluding (i) any indenture, mortgage, deed the restrictions on transfer described in Section 5(d) of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have a Material Adverse Effect or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreement.
(e) As of their respective filing dates, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC Subscription Agreement with respect to any the status of the SEC Reports.
(f) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or Ordinary Shares as “restricted securities” pending their registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the issuance of the Equity Support Shares pursuant to this Equity Support Agreement, other than (i) filings with the SEC, (ii) filings required by applicable state securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support Agreement; (iv) those required by The Nasdaq Stock Market LLC, including with respect to obtaining approval of the Issuer’s stockholders, and (v) those the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(g) As of the date hereof, the Issuer has not received any written communication from a governmental authority that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(h) Assuming the accuracy of each Subscriber’s representations and warranties set forth in Section 6 of this Equity Support Agreement, no registration for resale under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Shares by the Issuer to each Subscribers.
(i) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission in connection accordance with the sale terms of the Equity Support Shares.
(l) The Issuer is notthis Subscription Agreement, and the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for compliance with routine transfer registration provisions under the purposes of Cayman Islands law, is Issuer’s organizational documents and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit agreements and policies of the Issuer, ’s transfer agent and (iii) restrictions on the SPAC, the shareholders resale of the Issuer or Subscribed Shares under the shareholders applicable securities laws of the SPAC. For the avoidance Province of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o)Ontario.
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 2 contracts
Samples: Subscription Agreement (Metals Acquisition Corp), Subscription Agreement (Metals Acquisition Corp)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers the Investor that:
(a) The Issuer is an exempted company duly incorporated, validly existing and in good standing under the laws of the Cayman IslandsIslands (to the extent such concept exists in such jurisdiction). The Issuer has all power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the each Closing Date, following the Domestication, Issuer will be duly incorporated, validly existing as a corporation and in good standing under the laws of the Cayman IslandsState of Delaware.
(b) As of the each Closing Date, all the Equity Support Shares will be duly authorized and, when issued and delivered to each Subscriber the Investor against full payment therefor in accordance with the terms of this Equity Support Subscription Agreement, the Equity Support Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum and articles certificate of association incorporation (as in effect at such time of issuance) or under the Companies Act, as amended, of the Cayman IslandsDelaware General Corporation Law.
(c) This Equity Support Subscription Agreement has been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Subscription Agreement constitutes the valid and binding agreement of each Subscriberthe Investor, this Equity Support Subscription Agreement is enforceable against the Issuer in accordance with its terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or (ii) principles of equity, whether considered at law or equity.
(d) The issuance and sale by the Issuer of all the Equity Support Shares pursuant to this Equity Support Agreement, and the performance of its obligations hereunder and under each Pledge Subscription Agreement and Control Agreement and the transactions contemplated thereby, will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Subscription Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have a Material Adverse Effect or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Subscription Agreement.
(e) As of their respective filing dates, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) SEC since January 13July 24, 2021 2020 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any of the SEC Reports.
(f) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the issuance of the Equity Support Shares pursuant to this Equity Support Subscription Agreement, other than (i) filings with the SEC, (ii) filings required by applicable state securities laws, (iii) the filings required in accordance with Section 16 13 of this Equity Support Subscription Agreement; , (iv) those required by The Nasdaq Stock Market LLC, including with respect to obtaining approval of the Issuer’s stockholders, and (v) those the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(g) As of the date hereof, the Issuer has not received any written communication from a governmental authority that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(h) Assuming the accuracy of each Subscriberthe Investor’s representations and warranties set forth in Section 6 of this Equity Support Subscription Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Shares by the Issuer to each Subscribersthe Investor.
(i) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following As of the Transaction Closingdate hereof, the issued and outstanding Shares Class A ordinary shares of the Issuer will be are registered pursuant to Section 12(b) of the Exchange Act. Following the ClosingDomestication, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Equity Support Shares.
(l) The Issuer is not, and Shares other than to the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” Placement Agents (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Actbelow).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 2 contracts
Samples: Subscription Agreement (ACE Convergence Acquisition Corp.), Subscription Agreement (ACE Convergence Acquisition Corp.)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers Subscriber that:
(a) The Issuer has been duly incorporated and is an exempted company duly incorporated, validly existing and as a corporation in good standing under the laws of the Cayman Islands. The Issuer has all State of Delaware, with corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As of the Closing Date, all the Equity Support The Acquired Shares will be have been duly authorized by the Issuer and, when issued and delivered to each Subscriber against full payment therefor for the Acquired Shares in accordance with the terms of this Equity Support Subscription Agreement, the Equity Support Acquired Shares will be validly issued, fully paid and non-assessable assessable, free and clear of all liens or other restrictions (except as otherwise stated herein) and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum certificate of incorporation and articles of association bylaws (each, as in effect at such time of issuance) or amended concurrently with the Closing), under the Companies Act, as amended, laws of the Cayman IslandsState of Delaware, under any agreement or instrument to which the Issuer is a party or by which the Issuer is bound, or otherwise.
(c) This Equity Support Agreement has Subscription Agreement, the Business Combination Agreement, the Other Subscription Agreements and any other agreements related to or executed in connection with the Transactions (collectively, the “Transaction Documents”) have been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Agreement constitutes the Transaction Documents have been duly authorized, executed and delivered by the other parties thereto, are valid and binding agreement obligations of each Subscriberthe Issuer, this Equity Support Agreement is and are enforceable against the Issuer it in accordance with its their terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, reorganization, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or and (ii) principles of equity, whether considered at law or equity.
(d) The execution, delivery and performance of this Subscription Agreement and the other Transaction Documents, including the issuance and sale by of the Issuer of all the Equity Support Acquired Shares pursuant to this Equity Support Agreement, and the performance consummation of its obligations hereunder the Transactions and under each Pledge Agreement and Control Agreement and the other transactions contemplated hereby and thereby, do not and will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreementsubject; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency agency, taxing authority or regulatory body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that properties, that, in the case of clause (i) or (iii), would reasonably be expected to have a Material Adverse Effect Effect. For purposes of this Subscription Agreement, a “Material Adverse Effect” means an event, change, development, occurrence, condition or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreement.
(e) As of their respective filing dates, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC effect with respect to any of the SEC Reports.
Issuer and its subsidiaries, taken together as a whole (f) The Issuer is not required to obtain any consenton a consolidated basis), waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the issuance of the Equity Support Shares pursuant to this Equity Support Agreement, other than (i) filings with the SEC, (ii) filings required by applicable state securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support Agreement; (iv) those required by The Nasdaq Stock Market LLC, including with respect to obtaining approval of the Issuer’s stockholders, and (v) those the failure of which to obtain would not be reasonably be expected to havethat, individually or in the aggregate, a Material Adverse Effect.
(g) As of the date hereof, the Issuer has not received any written communication from a governmental authority that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to havehave a material adverse effect on the business, properties, assets, liabilities, operations, financial condition, stockholders’ equity or results of operations of the Issuer or Target or their respective subsidiaries individually or in taken as a whole and including the aggregatecombined company after giving effect to the Transactions, a Material Adverse Effect.
or materially affect, impede, or prevent the Issuer’s ability to consummate the (hi) Assuming transactions contemplated hereby, including the accuracy of each Subscriber’s representations and warranties set forth in Section 6 of this Equity Support Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer issuance and sale of the Equity Support Acquired Shares by the Issuer to each Subscribers.
(i) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Equity Support Shares.
(l) The Issuer is not, and the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debtsTransactions.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers Subscriber that:
(a) The Issuer is an exempted company duly incorporated, is validly existing and is in good standing under the laws of the Cayman Islands. The Issuer has all , with the requisite corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As of the Closing DateClosing, all the Equity Support Subscription Shares will be have been duly authorized by the Issuer and, when issued and delivered to each Subscriber against full payment therefor for the Subscription Shares in accordance with the terms of this Equity Support AgreementSubscription Agreement and registered in the Issuer’s register of members, the Equity Support Subscription Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum and articles of association (as in effect at such time of issuance) or under the Companies Act, Act (as amended, revised) of the Cayman Islands.
(c) This Equity Support Subscription Agreement has been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Subscription Agreement constitutes the valid and binding agreement of each Subscriber, this Equity Support Subscription Agreement is enforceable against the Issuer in accordance with its terms, except as may be limited or otherwise affected by (i) subject to applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar laws affecting or other laws relating to or affecting the creditors’ rights of creditors generallygenerally and subject, or (ii) as to enforceability, to general principles of equity, whether such enforceability is considered in a proceeding in equity or at law or equitylaw.
(d) The issuance and sale of the Subscription Shares and the compliance by the Issuer with all of all the Equity Support Shares pursuant to provisions of this Equity Support AgreementSubscription Agreement and the consummation of the transactions herein will be done in accordance with The Nasdaq Stock Market LLC (“Nasdaq”) marketplace rules and the Rules Governing the Listing of Securities on the HKSE (the “Listing Rules”), as applicable, and the performance consummation of its obligations hereunder and under each Pledge Agreement and Control Agreement and the other transactions contemplated therebyherein and in the Other Subscription Agreements, do not and will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; , or (iiiii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency agency, taxing authority or regulatory body, domestic or foreign, having jurisdiction over the Issuer or any that, in the cases of its properties that clauses (i) and (ii), would reasonably be expected to have have, individually or in the aggregate, a material adverse effect on the Issuer’s ability to consummate the transactions contemplated by this Subscription Agreement (an “Issuer Material Adverse Effect Effect”) or materially affect the validity of the Equity Support Subscription Shares or the ability or legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Subscription Agreement.
(e) As of their respective filing dates, all reports required to be filed by Assuming the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements accuracy of the Exchange Act representations and the rules and regulations warranties of the SEC promulgated thereunder. As of Subscriber, the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any of the SEC Reports.
(f) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person person, whether in the United States, Hong Kong or any other jurisdiction, in connection with the execution, delivery and performance by the Issuer of this Subscription Agreement (including, without limitation, the issuance of the Equity Support Shares pursuant to this Equity Support AgreementSubscription Shares), other than (i) filings the filing with the SECUnited States Securities and Exchange Commission (the “Commission”) of the Registration Statement (as defined below), (ii) the filings required by the Hong Kong Securities and Futures Commission (the “SFC”), (iii) the filings required by applicable state securities laws, regulations and securities exchange rules (iiiincluding the Listing Rules), (iv) the filings required in accordance with Section 16 of this Equity Support Agreement; 10(o), (ivv) those the filings required by The Nasdaq Stock Market LLCor HKSE, including with respect to obtaining approval of shareholder approval, (vi) those required to consummate the Issuer’s stockholderstransactions as provided under the Merger Agreement, and (vvii) those any consent, waiver, authorization or order of, notice to, or filing or registration, the failure of which to obtain would not be reasonably be expected likely to have, individually or in the aggregate, a an Issuer Material Adverse Effect.
(g) As of the date hereof, the Issuer has not received any written communication from a governmental authority that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(hf) Assuming the accuracy of each Subscriber’s representations and warranties set forth in Section 6 of this Equity Support Agreement4, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Subscription Shares by the Issuer to each SubscribersSubscriber in the manner contemplated by this Subscription Agreement.
(ig) Neither the Issuer nor any person acting on its behalf has offered engaged or sold the Equity Support Shares by will engage in any form of general solicitation or general advertising in violation (within the meaning of Regulation D of the Securities Act) in connection with any offer or sale of the Subscription Shares.
(h) Neither the Issuer, nor any person acting on its behalf has, directly or indirectly, made any offers or sales of any Issuer security or solicited any offers to buy any security under circumstances that would adversely affect reliance by the Issuer on Section 4(a)(2) of the Securities Act for the exemption from registration for the transactions contemplated hereby or would require registration of the issuance of the Subscription Shares.
(i) Except as provided in this Subscription Agreement and the Other Subscription Agreements, none of the Issuer, its subsidiaries or any of their affiliates, nor any person acting on their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would require registration of the issuance of any of the Subscription Shares under the Securities Act, whether through integration with prior offerings pursuant to Rule 152(a) of the Securities Act or otherwise.
(j) Following Other than the Transaction ClosingPlacement Agent (as defined below), the issued and outstanding Shares Issuer has not engaged any broker, finder, commission agent, placement agent or arranger in connection with the sale of the Issuer will be registered pursuant to Section 12(b) of Subscription Shares, and the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Equity Support SharesSubscription Shares other than to the Placement Agent.
(lk) The Issuer is not, Other Subscription Agreements reflect (or will reflect) the same Per Share Subscription Price and other material terms and conditions (including the Issuer after registration rights) with respect to the consummation subscription of the transaction contemplated hereby, will not be required Company Shares that are no more favorable from an economic perspective to register as an “investment company” as such term is defined the respective Other Subscribers thereunder in any material respect than the Investment Company Act terms of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amendedthis Subscription Agreement, other than a person terms particular to the regulatory requirements of such investor or its affiliates or related funds that is an eligible contract participant under Section 1a(18)(C) are mutual funds or are otherwise subject to regulations related to the timing of funding and the issuance of the Commodity Exchange Act)relevant Company Shares.
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers Subscriber that:
(a) The Issuer is an exempted company duly incorporated, is validly existing and is in good standing under the laws of the Cayman Islands. The Issuer has all , with corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As of the Closing Date, all the Equity Support Acquired Shares will be have been duly authorized by the Issuer and, when issued and delivered to each the Subscriber against full payment therefor for the Acquired Shares in accordance with the terms of this Equity Support AgreementSubscription Agreement and registered in the Issuer’s share register or register of members (as applicable), the Equity Support Acquired Shares will be validly issued, fully paid and non-assessable assessable, free and clear of any liens or other restrictions whatsoever (other than those arising under this Subscription Agreement or applicable state or federal securities laws) and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum and articles of association (as in effect at such time of issuance) or under the Companies Act, as amended, laws of the Cayman Islands.
(c) This Equity Support Subscription Agreement has been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Subscription Agreement constitutes the valid and binding agreement of each the Subscriber, this Equity Support Subscription Agreement is enforceable against the Issuer in accordance with its terms, except as may be limited or otherwise affected by (i) subject to applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar laws affecting or other laws relating to or affecting the creditors’ rights of creditors generallygenerally and subject, or (ii) as to enforceability, to general principles of equity, whether such enforceability is considered in a proceeding in equity or at law or equitylaw.
(d) The issuance and sale of the Acquired Shares and the compliance by the Issuer with all of all the Equity Support Shares pursuant to provisions of this Equity Support AgreementSubscription Agreement and the consummation of the transactions herein will be done in accordance with The Nasdaq Stock Market LLC (“Nasdaq”) marketplace rules, and the performance consummation of its obligations hereunder and under each Pledge Agreement and Control Agreement and the other transactions contemplated therebyherein, do not and will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreementsubject; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency agency, taxing authority or regulatory body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that that, in the cases of clauses (i) and (iii), would reasonably be expected to have have, individually or in the aggregate, a material adverse effect on the business, properties, financial condition or results of operations of the Issuer and its subsidiaries taken as a whole (a “Material Adverse Effect Effect”) or materially affect the validity or enforceability of the Equity Support Acquired Shares or the ability or legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Subscription Agreement.
(e) As of their respective filing dates, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any of the SEC Reports.
(f) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other United States federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the execution, delivery and performance by the Issuer of this Subscription Agreement (including, without limitation, the issuance of the Equity Support Shares pursuant to this Equity Support AgreementAcquired Shares), other than (i) filings the filing with the SECUnited States Securities and Exchange Commission (the “Commission”) of the Registration Statement (as defined below), (ii) the filings required by applicable state or federal securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support Agreement; 10(n), (iv) those required by The Nasdaq Stock Market LLCNasdaq, including with respect to obtaining approval of the Issuer’s stockholdersshareholder approval, and (v) those any consent, waiver, authorization or order of, notice to, or filing or registration, the failure of which to obtain would not be reasonably be expected likely to have, individually or in the aggregate, a Material Adverse Effect.
(gf) As There is no (i) investigation, action, suit, claim or other proceeding, in each case by or before any governmental authority pending, or, to the knowledge of the Issuer as of the date hereofof this Subscription Agreement, threatened in writing against the Issuer that affects or would reasonably be expected to affect the Issuer’s ability to consummate the transactions contemplated by this Subscription Agreement, or (ii) judgment, decree, injunction, ruling or order of any governmental entity or arbitrator outstanding against the Issuer that affects or would be reasonably likely to have, individually or in the aggregate, a material adverse effect on the validity of the Acquired Shares or the legal authority of the Issuer to enter into and perform its obligations under this Subscription Agreement.
(g) The Issuer is in compliance with all applicable laws, except where such non-compliance would not reasonably be expected to have, individually or in the aggregate, a material adverse effect on the validity of the Acquired Shares or the legal authority of the Issuer to enter into and perform its obligations under this Subscription Agreement. The Issuer has not received any written communication from a governmental authority that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effectmaterial adverse effect on the validity of the Acquired Shares or the legal authority of the Issuer to enter into and perform its obligations under this Subscription Agreement.
(h) Assuming the accuracy of each Subscriber’s representations and warranties set forth in Section 6 of this Equity Support Agreement4, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Acquired Shares by the Issuer to each SubscribersSubscriber in the manner contemplated by this Subscription Agreement.
(i) Neither the Issuer nor any person acting on its behalf has offered engaged or sold the Equity Support Shares by will engage in any form of general solicitation or general advertising in violation (within the meaning of Regulation D of the Securities Act) in connection with any offer or sale of the Acquired Shares.
(j) Following Neither the Transaction ClosingIssuer, the issued and outstanding Shares nor any person acting on its behalf has, directly or indirectly, made any offers or sales of any Issuer security or solicited any offers to buy any security under circumstances that would adversely affect reliance by the Issuer will be registered pursuant to on Section 12(b4(a)(2) of the Exchange Act. Following Securities Act for the Closing, exemption from registration for the Equity Support Shares are expected to be registered under transactions contemplated hereby or would require registration of the Exchange Actissuance of the Acquired Shares.
(k) The Except as provided in this Subscription Agreement, the Other Subscription Agreements, and the agreements in relation to the investment of $55,000,000 by a certain asset management fund and/or its Affiliates in the Company by way of subscribing for certain convertible debentures of the Company and Company Ordinary Shares, none of the Issuer, its subsidiaries or any of their affiliates, nor any person acting on their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would require registration of the issuance of any of the Acquired Shares under the Securities Act, whether through integration with prior offerings pursuant to Rule 502(a) of the Securities Act or otherwise.
(l) Except for placement fees payable to UBS Securities LLC, Mxxxxxx Lxxxx (Asia Pacific) Limited and Inte Securities LLC, in their capacities as placement agents for the offer and sale of the Acquired Shares (in such capacities, the “Placement Agents”), the Issuer has not paid, and is not under obligated to pay, any obligation to pay any brokerbrokerage, finder’s or other fee or commission in connection with the its issuance and sale of the Equity Support Acquired Shares.
, including, for the avoidance of doubt, any fee or commission payable to any shareholder or affiliate, as defined in Rule 144 under the Securities Act (l) The Issuer is not“Affiliate”), and the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amendedIssuer.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an No “eligible contract participantbad actor” (as such term is defined disqualifying event described in Section 1a(18Rule 506(d)(1)(i)-(viii) of the Commodity Exchange Securities Act (a “Disqualification Event”) is applicable to the Issuer or, to the Issuer’s knowledge, any Issuer Covered Person, except for a Disqualification Event as to which Rule 506(d)(2)(ii-iv) or (d)(3), is applicable. “Issuer Covered Person” means, with respect to the Issuer as an “issuer” for purposes of Rule 506 promulgated under the Securities Act, as amended, other than a any person listed in the first paragraph of Rule 506(d)(1). The Issuer represents that is an eligible contract participant under Section 1a(18)(C) it has exercised reasonable care to determine the accuracy of the Commodity Exchange Act).
(n) Neither representation made by the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debtsthis paragraph.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Samples: Subscription Agreement (Silver Crest Acquisition Corp)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers the Backstop Investor that:
(a) The Issuer is an exempted company duly incorporated, validly existing and in good standing under the laws of the Cayman IslandsIslands (to the extent such concept exists in such jurisdiction). The Issuer has all power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Backstop Subscription Agreement. As of the Closing Date, following the Domestication, Issuer will be duly incorporated, validly existing as a corporation and in good standing under the laws of the Cayman IslandsState of Delaware.
(b) As of the Closing Date, all the Equity Support Backstop Shares will be duly authorized and, when issued and delivered to each Subscriber the Backstop Investor against full payment therefor in accordance with the terms of this Equity Support Backstop Subscription Agreement, the Equity Support Backstop Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum and articles certificate of association incorporation (as in effect at such time of issuance) or under the Companies Act, as amended, of the Cayman IslandsDelaware General Corporation Law.
(c) This Equity Support Backstop Subscription Agreement has been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Backstop Subscription Agreement constitutes the valid and binding agreement of each Subscriberthe Backstop Investor, this Equity Support Backstop Subscription Agreement is enforceable against the Issuer in accordance with its terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or (ii) principles of equity, whether considered at law or equity.
(d) The issuance and sale by the Issuer of all the Equity Support Backstop Shares pursuant to this Equity Support Agreement, and the performance of its obligations hereunder and under each Pledge Backstop Subscription Agreement and Control Agreement and the transactions contemplated thereby, will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), or materially affect the validity of the Equity Support Backstop Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Backstop Subscription Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have a Material Adverse Effect or materially affect the validity of the Equity Support Backstop Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Backstop Subscription Agreement.
(e) As of their respective filing dates, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13July 24, 2021 2020 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations of the SEC promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any of the SEC Reports.
(f) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the issuance of the Equity Support Backstop Shares pursuant to this Equity Support Backstop Subscription Agreement, other than (i) filings with the SEC, (ii) filings required by applicable state securities laws, (iii) the filings required in accordance with Section 16 13 of this Equity Support Backstop Subscription Agreement; (iv) those required by The Nasdaq Stock Market LLC, including with respect to obtaining approval of the Issuer’s stockholders, and (v) those the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(g) As of the date hereof, the Issuer has not received any written communication from a governmental authority that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(h) Assuming the accuracy of each Subscriberthe Backstop Investor’s representations and warranties set forth in Section 6 of this Equity Support Backstop Subscription Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Backstop Shares by the Issuer to each Subscribersthe Backstop Investor.
(i) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Backstop Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following As of the Transaction Closingdate hereof, the issued and outstanding Shares Class A ordinary shares of the Issuer will be are registered pursuant to Section 12(b) of the Exchange Act. Following the ClosingDomestication, the Equity Support Backstop Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Equity Support Shares.
(l) The Issuer is not, and Backstop Shares other than to the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” Placement Agents (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Actbelow).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Samples: Backstop Subscription Agreement (ACE Convergence Acquisition Corp.)
Issuer Representations and Warranties. The Issuer represents makes the following representations and warrants covenants to each Subscribers thatthe Company and the Trustee as the basis for its undertaking herein contained:
(ai) The Issuer is an exempted company duly incorporated, validly existing and in good standing a home rule unit under the laws Section 6(a) of Article VII of the Cayman Islands. The Issuer has all power (corporate or otherwise) 1970 Constitution of the State, is authorized and authority empowered by the provisions of the Constitution and the Bond Ordinance to own, lease and operate its properties and conduct its business as presently conducted enter into the transactions contemplated by this Loan Agreement and to enter into, deliver and perform carry out its obligations under hereunder, and by proper action of its governing body has been duly authorized to execute and deliver the Indenture, the Purchase Contract, this Equity Support Loan Agreement and the Tax Agreement. As .
(ii) It is the Issuer’s understanding, based upon certain representations of the Closing DateCompany, that the issuance and sale of the Bonds and the loaning of the proceeds of the Bonds to the Company (which proceeds will be applied for the benefit of the Company) is to provide a portion of the moneys required to (A) finance, refinance or reimburse the Company for all or a portion of the Project, (B) pay a portion of the interest to accrue on the Bonds during construction of the Project, and (C) pay certain costs relating to the issuance of the Bonds.
(iii) To provide funds to loan to the Company for the purposes described in clause (ii) above, the Issuer will has authorized its Bonds in the aggregate principal amount of $90,000,000 to be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As of the Closing Date, all the Equity Support Shares will be duly authorized and, when issued and delivered to each Subscriber against full payment therefor in accordance with upon the terms set forth in the Indenture, pursuant to which certain of this Equity Support Agreement, the Equity Support Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum and articles of association (as interests in effect at such time of issuance) or under the Companies Act, as amended, of the Cayman Islands.
(c) This Equity Support Agreement has been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Agreement constitutes the valid and binding agreement of each Subscriber, this Equity Support Agreement is enforceable against the Issuer in accordance with its terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or (ii) principles of equity, whether considered at law or equity.
(d) The issuance and sale by the Issuer of all the Equity Support Shares pursuant to this Equity Support Loan Agreement, and the performance of its obligations hereunder revenues and under each Pledge Agreement and Control income to be derived by the Issuer pursuant to this Loan Agreement and the payment of principal, premium, if any, interest and other revenues hereunder (other than Unassigned Rights), will be pledged and assigned to the Trustee as security for payment of the principal of, premium, if any, and interest on the Bonds, and any fees and expenses due under the Indenture. The Issuer covenants that it has not and will not pledge or assign its interest in this Loan Agreement, or the revenues and receipts derived pursuant to this Loan Agreement, excepting Unassigned Rights, other than to the Trustee under the Indenture to secure the Bonds.
(iv) Neither the Issuer’s execution and delivery of this Loan Agreement, its consummation of the transactions contemplated therebyon its part hereby, will not conflict nor the Issuer’s fulfillment of or compliance with the terms and conditions of this Loan Agreement conflicts with or result results in a breach or violation of the terms, conditions and provisions of any of the terms or provisions ofmaterial restriction, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer is a party, or by which it or any of its subsidiaries property is bound, or constitutes a party default under any of the foregoing.
(including without limitation v) To the Transaction Agreement) or by which best of its knowledge, no member of the Board of Commissioners of the Issuer or any of its subsidiaries is bound officer or to which any of the property or assets other official of the Issuer is subject that would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreement; (ii) result interested in any violation of the provisions of the organizational documents of the Issuer; or (iii) result manner which is prohibited by law in any violation of any lawcontract, statute employment, lease, purchase or any judgment, order, rule sale made or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have a Material Adverse Effect or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreement.
(e) As of their respective filing dates, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any of the SEC Reports.
(f) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person made in connection with the issuance of proposed transactions contemplated by the Equity Support Shares pursuant to Indenture, this Equity Support Agreement, other than (i) filings Loan Agreement or the Purchase Contract. Concurrently with the SEC, (ii) filings required by applicable state securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support Agreement; (iv) those required by The Nasdaq Stock Market LLC, including with respect to obtaining approval of the Issuer’s stockholders, and (v) those the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(g) As of the date hereofClosing Date, the Issuer has not received any written communication from shall execute and deliver a governmental authority that alleges that certificate reaffirming the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(h) Assuming the accuracy of each Subscriber’s foregoing representations and warranties set forth in Section 6 of this Equity Support Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Shares by the Issuer to each SubscribersClosing Date.
(i) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Equity Support Shares.
(l) The Issuer is not, and the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers that:
(a) a. The Issuer is an exempted has been incorporated as a Dutch private limited liability company duly incorporated(besloten vennootschap met beperkte aansprakelijkheid) and is, following conversion of its legal form, validly existing and as a Dutch public company (naamloze vennootschap) in good standing (or such equivalent concept to the extent it exists under the laws of the Cayman Islands. The Issuer has all Netherlands) under the laws of the Netherlands, with corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and as the Issuer currently contemplates shall be conducted following the Transactions and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As of the Closing Date, all the Equity Support b. The Acquired Shares will be have been duly authorized and, when issued and delivered to each Subscriber against full payment therefor for the Acquired Shares in accordance with the terms of this Equity Support AgreementSubscription Agreement and registered in the Issuer’s shareholders’ register, the Equity Support Acquired Shares will be validly issued, fully paid and non-assessable (meaning that the holders of the Acquired Shares will not by reason of merely being such a holder, be subject to assessment or calls by the Company or its creditors for further payment on such Acquired Shares), free and clear of any liens or other restrictions whatsoever (other than those arising under state or federal securities laws), and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum and articles of association (as in effect at such time of issuance) or association, under the Companies Act, as amended, laws of the Cayman IslandsNetherlands, or pursuant to any other understanding, right, agreement or otherwise.
c. This Subscription Agreement, the Other Subscription Agreements and the Combination Agreement (ccollectively, the “Transaction Documents”) This Equity Support Agreement has have been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Agreement constitutes the valid and binding agreement of each Subscriber, this Equity Support Agreement is are enforceable against the Issuer in accordance with its their respective terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or and (ii) principles of equity, whether considered at law or equity.
(d) The issuance d. Assuming the accuracy of Subscriber’s representations and sale warranties in Section 5, the execution and delivery by the Issuer of all the Equity Support Shares pursuant to this Equity Support AgreementTransaction Documents, and the performance by the Issuer of its obligations hereunder under the Transaction Documents, including the issuance and under each Pledge Agreement and Control Agreement sale of the Acquired Shares and the consummation of the other transactions contemplated therebyherein, do not and will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that subject, which would be reasonably be expected to have have, individually or in the aggregate, a material adverse effect on the business, properties, financial condition condition, shareholders’ equity or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), ) or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under the terms of this Equity Support Subscription Agreement; (ii) result in any violation the articles of the provisions of the organizational documents association of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would be reasonably be expected to have have, individually or in the aggregate, a Material Adverse Effect or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Subscription Agreement.
e. There are no securities or instruments issued by or to which the Issuer is a party containing anti-dilution or similar provisions that will be triggered by the issuance of (ei) As of their respective filing dates, all reports required the Acquired Shares or (ii) the Ordinary Shares to be filed by issued pursuant to any Other Subscription Agreement, in each case, that have not been or will not be validly waived on or prior to the Closing Date.
f. The Issuer is not in default or violation (and no event has occurred which, with notice or the lapse of time or both, would constitute a default or violation) of any term, condition or provision of (i) the articles of association of the Issuer, (ii) any loan or credit agreement, note, bond, mortgage, indenture, lease or other agreement, permit, franchise or license to which the Issuer with is now a party or by which the U.S. Securities and Exchange Commission Issuer’s properties or assets are bound, or (the “SEC”iii) since January 13any statute or any judgment, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements order, rule or regulation of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereofany court or governmental agency or body, there are no material outstanding domestic or unresolved comments in comment letters received by foreign, having jurisdiction over the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to or any of its properties, except, in the SEC Reportscase of clauses (ii) and (iii), for defaults or violations that have not had and would not be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect.
(f) The g. Assuming the accuracy of Subscriber’s representations and warranties in Section 5, the Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the execution, delivery and performance by the Issuer of this Subscription Agreement (including, without limitation, the issuance of the Equity Support Shares pursuant to this Equity Support AgreementAcquired Shares), other than (i) filings the filing with the SECCommission of the Registration Statement (as defined below), (ii) filings required by applicable state or federal securities laws, (iii) those required by the filings required in accordance with Section 16 of this Equity Support Agreement; NYSE, and (iv) those required by The Nasdaq Stock Market LLC, including with respect to obtaining approval of the Issuer’s stockholders, and (v) those the failure of which to obtain would not be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect or have a material adverse effect on the Issuer’s ability to consummate the transactions contemplated hereby, including the sale and issuance of the Acquired Shares.
h. As of the date hereof, one (1) Ordinary Share is issued and outstanding. There are no securities or instruments issued by or to which Issuer is a party containing anti-dilution or similar provisions that will be triggered by the issuance of (i) the Acquired Shares or (ii) the Ordinary Shares to be issued pursuant to any Other Subscription Agreement, in each case, that have not been or will not be validly waived on or prior to the Closing Date. There are no stockholder agreements, voting trusts or other agreements or understandings to which Issuer is a party or by which it is bound relating to the voting of any securities of Issuer, other than (1) as set forth in the SEC Documents and (2) as contemplated by the Combination Agreement.
i. The Issuer is in compliance with all applicable laws, except where such noncompliance would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(g) As of the date hereof, the . The Issuer has not received any written communication from a governmental authority entity that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not, individually or in the aggregate, be reasonably expected to have a Material Adverse Effect.
j. Assuming the accuracy of Subscriber’s representations and warranties set forth in Section 5, no registration under the Securities Act is required for the offer and sale of the Acquired Shares by the Issuer to Subscriber in the manner contemplated by this Subscription Agreement.
k. Neither the Issuer nor any person acting on its behalf has engaged or will engage in any form of general solicitation or general advertising (within the meaning of Regulation D of the Securities Act) in connection with any offer or sale of the Acquired Shares.
l. The Issuer has not entered into any side letter or similar agreement with any Other Subscriber or any other investor in connection with such Other Subscriber’s or such other investor’s direct or indirect investment in the Issuer other than (i) the Combination Agreement, (ii) the Other Subscription Agreements; provided, that no Other Subscription Agreement included a purchase price per share that is lower than the Share Purchase Price or includes terms and conditions that are materially more advantageous to any such Other Subscriber, investor or potential investor (as compared to Subscriber), other than terms particular to the regulatory requirements of such Subscriber or its affiliates or related funds, (iii) that certain letter agreement, dated February 8, 2021 by and among the Sponsor, Spartan and the other parties thereto, as amended on the date hereof, (iv) agreements or forms thereof that have been publicly filed via the Commission’s XXXXX system, including filings made by either Spartan or the Issuer and (v) commercial arrangements between operating subsidiaries of the Company or the Company and any strategic Other Subscriber or its affiliates. The Other Subscription Agreements have not been amended in any material respect following the date of this Subscription Agreement and reflect the same Share Purchase Price and economic terms that are no more favorable to any such Other Subscriber thereunder than the terms of this Subscription Agreement (other than (A) the alternative settlement mechanics available to investment companies registered under the Investment Company Act or investors advised by an investment adviser subject to regulation under the Investment Advisers Act as contemplated by Section 2(b) hereof or (B) commercial arrangements between operating subsidiaries of the Company or the Company and any strategic Other Subscriber or its affiliates).
m. Except for such matters as have not had and would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, there is no (i) suit, action, proceeding or arbitration before a governmental authority or arbitrator pending, or, to the knowledge of the Issuer, threatened against the Issuer or (ii) judgment, decree, injunction, ruling or order of any governmental entity or arbitrator outstanding against the Issuer.
n. Except for placement fees payable to Barclays Capital Inc. (h) Assuming the accuracy of each Subscriber’s representations and warranties set forth in Section 6 of this Equity Support Agreement, no registration under the Securities Act of 1933, as amended (the “Securities ActBarclays”), is required Citigroup Global Markets, Inc. (“Citi”), Credit Suisse Securities (USA) LLC (“Credit Suisse”), Xxxxxxx Sachs International (“Xxxxxxx Xxxxx”), and Apollo Global Securities, LLC (“AGS”), in their capacity as placement agents for the offer and sale of the Equity Support Acquired Shares by (in such capacity, the “Placement Agents”), the Issuer has not paid, and is not obligated to each Subscriberspay, any brokerage, finder’s or other commission or similar fee in connection with its issuance and sale of the Acquired Shares, including, for the avoidance of doubt, any fee or commission payable to any stockholder or affiliate of the Issuer; provided, however, that Barclays, Credit Suisse and Citi will separately receive deferred underwriting commissions, as disclosed in Spartan’s final prospectus relating to its initial public offering dated February 8, 2021, upon the closing of the Transactions; provided, further, that Credit Suisse may separately receive fees from the Company in its capacity as financial advisor and capital markets advisor to the Company.
(i) Neither o. None of the Issuer Issuer, its subsidiaries or any of their affiliates, nor any person acting on its their behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Equity Support Shares.
(l) The Issuer is not, and the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have nothas, directly or indirectly, negotiated made any offers or entered into an Excluded Financing with sales of any other parties for the benefit security or solicited any offers to buy any security, under circumstances that would require registration of the Issuer, the SPAC, the shareholders issuance of any of the Issuer or Acquired Shares under the shareholders Securities Act, whether through integration with prior offerings pursuant to Rule 502(a) of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o)Securities Act or otherwise.
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Samples: Subscription Agreement (Spartan Acquisition Corp. III)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers the Investor that:
(a) The Issuer is an exempted company duly incorporated, validly existing and in good standing under the laws of the Cayman IslandsIslands (to the extent such concept exists in such jurisdiction). The Issuer has all power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, following the Domestication, Issuer will be duly incorporated, validly existing as a corporation and in good standing under the laws of the Cayman IslandsState of Delaware.
(b) As of the Closing Date, all the Equity Support Shares shares of Common Stock issuable upon conversion of the Notes (the “Underlying Shares”) will be duly authorized and, when issued upon conversion of the Notes, will be validly issued, fully paid and non-assessable, free and clear of any liens or other restrictions (other than those arising under applicable securities laws or by and through Investor lock up) and will not have been issued in violation of any preemptive rights created under the Issuer’s organizational documents (as adopted on or prior to the Closing Date), by any contract to which the Issuer is a party or by which it is bound, or under the laws of its jurisdiction of incorporation.
(c) As of the Closing Date, the Subscribed Notes will be duly authorized and, when issued and delivered to each Subscriber the Investor against full payment therefor in accordance with the terms of this Equity Support Subscription Agreement, the Equity Support Shares Subscribed Notes will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum and articles certificate of association incorporation (as in effect at such time of issuance) or under the Companies Act, as amended, of the Cayman IslandsDelaware General Corporation Law.
(cd) This Equity Support Subscription Agreement has been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Subscription Agreement constitutes the valid and binding agreement of each Subscriberthe Investor, this Equity Support Subscription Agreement is enforceable against Issuer in accordance with its terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or (ii) principles of equity, whether considered at law or equity. As of the Closing Date, the Registration Rights Agreement, the Indenture and the Guarantees will have been duly authorized by Issuer and the Guarantors, as applicable, and when duly authorized, executed and delivered by the Issuer, the Guarantors and the other parties thereto (including the Trustee), will constitute a legal, valid and binding obligation of Issuer and the Guarantors, as applicable, enforceable against Issuer and the Guarantors, respectively, in accordance with its terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or (ii) principles of equity, whether considered at law or equity.
(de) The execution, delivery and performance of this Subscription Agreement and the Indenture, the issuance and sale of the Subscribed Notes and the compliance by the Issuer of all the Equity Support Shares pursuant to this Equity Support Agreement, and the performance Guarantors with all of its obligations hereunder and under each Pledge Agreement and Control the provisions of this Subscription Agreement and the Indenture and the consummation of the transactions contemplated thereby, herein and therein will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which Issuer, the Issuer Guarantors or any of its their respective subsidiaries is a party (including without limitation the Transaction Agreement) or by which Issuer, the Issuer Guarantors or any of its their respective subsidiaries is bound or to which any of the property or assets of Issuer or the Issuer Guarantors is subject that would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of Issuer, the Issuer Guarantors and its their respective subsidiaries, taken as a whole (a “Material Adverse Effect”), or materially affect the validity of the Equity Support Shares Subscribed Notes or the Underlying Shares, or any guarantee by a Guarantor or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support AgreementSubscription Agreement or the Indenture; (ii) result in any violation of the provisions of the organizational documents of the IssuerIssuer or any Guarantor; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any Guarantor or any of its properties that would reasonably be expected to have a Material Adverse Effect or materially affect the validity of the Equity Support Shares Subscribed Notes, the Indenture, the Guarantees or the legal authority of Issuer or the Issuer Guarantors to comply in all material respects with its obligations under this Equity Support Subscription Agreement, the Indenture and the Guarantees.
(ef) As of their respective filing dates, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13July 24, 2021 2020 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations of the SEC promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any of the SEC Reports.
(fg) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the execution, delivery and performance of this Subscription Agreement and the Indenture, the issuance and sale of the Equity Support Shares pursuant to Notes and the compliance by the Issuer and the Guarantors with all of the provisions of this Equity Support AgreementSubscription Agreement and the Indenture and the consummation of the transactions contemplated herein and therein, other than (i) filings with the SEC, (ii) filings required by applicable state securities laws, (iii) the filings required in accordance with Section 16 13 of this Equity Support Subscription Agreement; (iv) those required by The Nasdaq Stock Market LLC, including with respect to obtaining approval of the Issuer’s stockholders, and (v) those the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(gh) As of the date hereof, the Issuer has not received any written communication from a governmental authority that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(hi) Assuming the accuracy of each Subscriberthe Investor’s representations and warranties set forth in Section 6 of this Equity Support Subscription Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Shares Subscribed Notes by the Issuer to each Subscribersthe Investor and the issuance of the Underlying Shares (if any) to the Investor.
(ij) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares Subscribed Notes by any form of general solicitation or general advertising in violation of the Securities Act.
(jk) Following As of the Transaction Closingdate hereof, the issued and outstanding Shares Class A ordinary shares of the Issuer will be are registered pursuant to Section 12(b) of the Exchange Act. Following the ClosingDomestication, the Equity Support Shares are Common Stock is expected to be registered under the Exchange Act.
(kl) The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Equity Support Shares.
(l) The Issuer is not, and Subscribed Notes other than to the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” Placement Agents (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Actbelow).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Samples: Note Subscription Agreement (ACE Convergence Acquisition Corp.)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers the Investor that:
(a) The As of the date hereof and prior to the Domestication, Issuer is an exempted company duly incorporated, validly existing and in good standing under the laws of the Cayman IslandsIslands (to the extent such concept exists in such jurisdiction). The Issuer has all power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, following the Domestication, Issuer will be duly incorporated, validly existing as a corporation and in good standing under the laws of the Cayman IslandsState of Delaware, with all power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Subscription Agreement.
(b) As of the Closing Date, all the Equity Support The Shares will be duly authorized and, when issued and delivered to each Subscriber the Investor against full payment therefor in accordance with the terms of this Equity Support Subscription Agreement, the Equity Support Shares will be validly issued, fully paid paid, free and clear of all liens or other encumbrances (other than those arising under applicable securities laws) and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum and articles of association organizational documents (as in effect at such time of issuance) or under the Companies Act, as amended, Delaware General Corporation Law or the laws of the Cayman Islands, if applicable.
(c) This Equity Support Subscription Agreement has been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Subscription Agreement constitutes the valid and binding agreement of each Subscriberthe Investor, this Equity Support Subscription Agreement is constitutes a legal, valid and binding obligation of the Issuer, enforceable against the Issuer in accordance with its terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or (ii) principles of equity, whether considered at law or equity.
(d) The Assuming the accuracy of the Investor’s representations and warranties in Section 6, the execution, delivery and performance of this Subscription Agreement, including the issuance and sale by the Issuer of all the Equity Support Shares pursuant to this Equity Support Agreement, and the performance of its obligations hereunder and under each Pledge Subscription Agreement and Control Agreement and the transactions contemplated thereby, will not (i) conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that would reasonably be expected to have a material adverse effect on the business, financial condition condition, or results of operations of the Issuer and its subsidiaries, taken as a whole (a an “Issuer Material Adverse Effect”), ) or materially affect a material effect on the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Subscription Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have a an Issuer Material Adverse Effect or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support AgreementEffect.
(e) As of their respective filing dates, or, if amended, as of the date of such amendment, which shall be deemed to supersede such original filing, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 SEC (the “SEC Reports”) complied in all material respects with the applicable requirements of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations of the SEC promulgated thereunder. As thereunder as of the date hereofof such filing (as amended, there as applicable). None of the SEC Reports filed under the Exchange Act included, when filed or, if amended, as of the date of such amendment with respect to those disclosures that are amended, any untrue statement of a material fact or omitted to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided, that the Issuer makes no such representation or warranty with respect to any registration statement or any proxy statement/prospectus to be filed by the Issuer with respect to the Transaction or any other information relating to the Company or any of its affiliates included in any SEC Report or filed as an exhibit thereto. There are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any of the SEC Reports. Notwithstanding the foregoing, this representation and warranty shall not apply to any statement or information in the SEC Reports that relates to the topics referenced in the SEC’s “Staff Statement on Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies” on April 12, 2021 or any subsequent guidance, statements or interpretations issued by the SEC or the Staff (collectively, the “SEC Statement”), nor shall any correction, amendment or restatement of Issuer’s financial statements due to the SEC Statement or to other accounting matters related to initial public offering securities or expenses, nor any changes in accounting or disclosure related thereto, be deemed to be a breach of any representation or warranty by Issuer.
(f) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the issuance of the Equity Support Shares pursuant to this Equity Support Subscription Agreement, other than (i) filings with the SEC, (ii) in connection with or as a result of the SEC Statement, (iii) filings required by applicable state securities laws, (iiiiv) the filings required in accordance with Section 16 13 of this Equity Support Subscription Agreement; (ivv) those required by The Nasdaq the New York Stock Market LLCExchange or Nasdaq, as applicable, including with respect to obtaining approval of the Issuer’s stockholders, and (vvi) those the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a an Issuer Material Adverse Effect.
(g) As of the date hereof, the authorized share capital of Issuer consists of 500,000,000 Class A ordinary shares, par value $0.0001 per share (“Class A Shares”), 50,000,000 Class B ordinary shares, par value $0.0001 per share (“Class B Shares”), and 5,000,000 preferred shares, par value $0.0001 per share (“Preferred Shares”). As of the date hereof: (i) 97,750,000 Class A Shares (including those underlying Issuer’s units), 24,437,500 Class B Shares and no Preferred Shares were issued and outstanding; and (ii) 21,118,750 warrants, each exercisable to purchase one (1) Class A Share at $11.50 per share (“Warrants”), were issued and outstanding, including 12,218,750 public warrants (including those underlying Issuer’s units) and 8,900,000 private placement warrants. No Warrants are exercisable on or prior to the Closing.
(h) There are no securities or instruments issued by or to which Issuer is a party containing anti-dilution or similar provisions that will be triggered, and not fully waived by the holder of such securities or instruments pursuant to a written agreement or consent, by (i) the issuance of the Shares pursuant to this Subscription Agreement, (ii) the issuance of the Shares to be issued pursuant to any Other Subscription Agreement and (iii) the consummation of the Transaction.
(i) Except for such matters as have not had an Issuer Material Adverse Effect, the Issuer is, and has been since its inception, in compliance with all state and federal laws applicable to the conduct of its business. The Issuer is in compliance with all applicable laws, except where such non-compliance would not reasonably be expected to have an Issuer Material Adverse Effect. As of the date hereof, Issuer has not received any written communication from a governmental authority that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to have, individually or in the aggregate, a an Issuer Material Adverse Effect. For the avoidance of doubt, this representation and warranty shall not apply to the extent any of the foregoing matters or communications arise from or relate to the SEC Statement and, in such case, such matters or communications shall not constitute a breach of any representation or warranty by Issuer.
(hj) Assuming the accuracy of each Subscriberthe Investor’s representations and warranties set forth in Section 6 of this Equity Support Subscription Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Shares by the Issuer to each Subscribersthe Investor.
(ik) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(jl) Following As of the Transaction Closingdate hereof, the issued and outstanding Shares Class A ordinary shares of the Issuer will be are registered pursuant to Section 12(b) of the Exchange ActAct and are listed for trading on Nasdaq or such other applicable stock exchange on which Issuer’s or its successor’s common stock is then listed. Following There is no suit, action, proceeding or investigation pending or, to the Closingknowledge of Issuer, threatened against Issuer by Nasdaq or such other applicable stock exchange on which Issuer’s or its successor’s common stock is then listed or the SEC with respect to any intention by such entity to deregister the Shares or prohibit or terminate the listing of the Shares on Nasdaq or such other applicable stock exchange on which Issuer’s or its successor’s common stock is then listed, excluding, for the purposes of clarity, the Equity Support customary ongoing review by Nasdaq or such other applicable stock exchange on which Issuer’s or its successor’s common stock is then listed in connection with the Transaction, Issuer has taken no action that is designed to terminate the registration of the Shares are expected to be registered under the Exchange ActAct prior to the Closing.
(km) The Except for such matters as have not had and would not reasonably be expected to have an Issuer Material Adverse Effect, there is no (i) suit, action, proceeding or arbitration before a governmental authority or arbitrator pending, or, to the knowledge of Issuer, threatened in writing against Issuer or (ii) judgment, decree, injunction, ruling or order of any governmental authority or arbitrator outstanding against Issuer. For the avoidance of doubt, this representation and warranty shall not apply to the extent any of the foregoing matters arise from or relate to the SEC Statement and, in such case, such matters shall not constitute a breach of any representation or warranty by Issuer.
(n) Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Equity Support SharesShares other than to Xxxxxxx Xxxxx & Co. LLC, any of its affiliates or any of its or their control persons, officers, directors, employees, agents or representatives (collectively, the “Placement Agent”). Issuer has not entered into any agreement or arrangement entitling any agent, broker, investment banker, financial advisor or other person (including the Placement Agent) to any broker’s or finder’s fee or any other commission or similar fee in connection with the transactions contemplated by this Subscription Agreement for which the Investor could become liable.
(lo) The Other Subscription Agreements reflect the same Per Share Subscription Price and other terms with respect to the purchase of the Shares that are not materially more favorable to the investors thereunder than the terms of this Subscription Agreement, other than representations, warranties and terms particular to the regulatory requirements of such investor or its affiliates or related funds. The Other Subscription Agreements have not been amended in any material respect following the date of this Subscription Agreement. For the avoidance of doubt, this Section 5(o) shall not apply to any document entered into in connection with the Insider PIPE Investment; provided, however, that such Insider PIPE Investment shall be with respect to the same class of Shares being acquired by the Investor hereunder and at the same Per Share Subscription Price.
(p) Issuer is not, and immediately after receipt of payment for the Issuer after the consummation of the transaction contemplated hereby, Shares will not be required to register as be, an “investment company” as such term is defined in within the meaning of the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Samples: Subscription Agreement (Reinvent Technology Partners Y)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers that:
(a) The Issuer has been duly incorporated and is an exempted company duly incorporated, validly existing and as a corporation in good standing under the laws of the Cayman Islands. The Issuer has all State of Delaware, with corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and and, subject to obtaining all approvals necessary for the consummation of the Transactions (collectively, the “Required Approvals”), to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As of the Closing DateSubscription Closing, all the Equity Support Acquired Shares will be have been duly authorized and, when issued and delivered to each Subscriber against full payment therefor of the Purchase Price for the Acquired Shares in accordance with the terms of this Equity Support AgreementSubscription Agreement and registered with the Transfer Agent, the Equity Support Acquired Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum certificate of incorporation and articles of association (as in effect at such time of issuance) bylaws or under the Companies Act, as amended, laws of the Cayman IslandsState of Delaware.
(c) This Equity Support Subscription Agreement has been duly authorized, executed and delivered by the Issuer andand assuming the due authorization, assuming that this Equity Support Agreement constitutes execution and delivery of the valid and binding agreement of each same by the Subscriber, this Equity Support Agreement is enforceable against the Issuer it in accordance with its terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, reorganization, fraudulent conveyance, reorganizationarrangement, moratorium or other laws relating to or affecting the rights of creditors generally, or and (ii) principles of equity, whether considered at law or equity.
(d) The issuance Subject to obtaining the Required Approvals, the execution, delivery and sale performance by the Issuer of all the Equity Support Shares pursuant to this Equity Support Subscription Agreement, including the issuance and sale of the performance of its obligations hereunder and under each Pledge Agreement and Control Agreement and the transactions contemplated therebyAcquired Shares, will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreementsubject; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that that, in the case of clauses (i) and (iii), would be reasonably be expected likely to have a Material Adverse Effect material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries taken as a whole or materially and adversely affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply perform in all material respects with its obligations under this Equity Support Agreementhereunder (a “Material Adverse Effect”).
(e) As of their respective filing dates, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any of the SEC Reports.
(f) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the execution, delivery and performance by the Issuer of this Subscription Agreement (including, without limitation, the issuance of the Equity Support Shares pursuant to this Equity Support AgreementAcquired Shares), other than (i) filings the filing with the SECSecurities and Exchange Commission (the “Commission”) of the Registration Statement (as defined below), (ii) filings required by applicable state securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support AgreementRequired Approvals; (iv) those required by The Nasdaq the New York Stock Market LLCExchange or other applicable stock exchange on which the Acquired Shares are then listed (“NYSE”), including with respect to obtaining approval of the Issuer’s stockholders, and (v) those the failure of which to obtain would not be reasonably be expected likely to have, individually or in the aggregate, a Material Adverse Effect.
(f) Assuming the accuracy of the Subscriber’s representations and warranties set forth in Section 4 of this Subscription Agreement, no registration under the Securities Act is required for the offer and sale of the Acquired Shares by the Issuer to the Subscriber.
(g) Neither the Issuer nor any person acting on its behalf has offered or sold the Acquired Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(h) The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Shares other than to the Agents (as defined below).
(i) The Other Subscription Agreements reflect the same Per Share Purchase Price and other terms and conditions with respect to the purchase of the Acquired Shares that are no more favorable to such subscriber thereunder than the terms of this Subscription Agreement, other than terms particular to the regulatory requirements of such subscriber or its affiliates or related funds that are mutual funds or are otherwise subject to regulations related to the timing of funding and the issuance of the related Acquired Shares. For the avoidance of doubt, this Section 3(i) shall not apply to any document entered into in connection with the Insider PIPE Investment; provided, however, that such Insider PIPE Investment shall be (i) with respect to the same class of common stock being acquired by Subscriber hereunder and at the same Per Share Purchase Price and with other economic terms that are substantially identical to those reflected herein (other than registration rights), and (ii) subject to a separate registration rights agreement which provides for registration of the Insider PIPE Investment within substantially the same time frame as hereunder and does not restrict Subscriber’s registration rights hereunder.
(j) As of their respective filing dates, all reports required to be filed by the Issuer with the Commission since November 5, 2019 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations of the Commission promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the Commission with respect to any of the SEC Reports.
(k) As of the date hereof, the issued and outstanding Class A Shares of the Issuer are registered pursuant to Section 12(b) of the Exchange Act and are listed for trading on the NYSE. There is no suit, action, claim, proceeding or investigation pending or, to the knowledge of the Issuer, threatened against the Issuer by the NYSE or the Commission with respect to any intention by such entity to deregister the Class A Shares or to prohibit or terminate the listing of the Class A Shares on the NYSE, excluding, for the purposes of clarity, the customary ongoing review by NYSE in connection with the Transactions. The Issuer has taken no action that is designed to terminate the registration of the Class A Shares under the Exchange Act prior to the Subscription Closing.
(l) As of the date hereof, Issuer has not received any written communication from a governmental authority that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(h) Assuming the accuracy of each Subscriber’s representations and warranties set forth in Section 6 of this Equity Support Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Shares by the Issuer to each Subscribers.
(i) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(km) The Issuer is not under any obligation acknowledges and agrees that, notwithstanding anything herein to pay any broker’s fee or commission the contrary, the Acquired Shares may be pledged by Subscriber in connection with the a bona fide margin agreement, which shall not be deemed to be a transfer, sale or assignment of the Equity Support Shares.
(l) The Issuer is notAcquired Shares hereunder, and the Issuer after the consummation Subscriber effecting a pledge of the transaction contemplated hereby, will Acquired Shares shall not be required to register as an “investment company” as such term is defined in provide the Investment Company Act of 1940, as amended.
(m) Issuer with any notice thereof or otherwise make any delivery to the Issuer pursuant to this Subscription Agreement. The Issuer is, hereby agrees to execute and the Issuer after the consummation deliver such documentation as a pledgee of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined Acquired Shares may reasonably request in Section 1a(18) connection with a pledge of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act)Acquired Shares to such pledgee by Subscriber.
(n) Neither There are no securities or instruments issued by or to which the Issuer nor is a party containing anti-dilution or similar provisions that will be triggered by the Issuer after the consummation issuance of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, the Acquired Shares or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands lawClass A Shares to be issued pursuant to any Other Subscription Agreement, is and in each case, that have not been or will not be unable validly waived on or prior to pay its debtsthe Closing Date.
(o) The Issuerauthorized capital stock of Issuer consists of (i) 1,000,000 shares of preferred stock, the SPACpar value $0.0001 per share, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly which no shares are issued or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As outstanding as of the date hereofof this Subscription Agreement, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create 175,000,000 shares of common stock, consisting of 150,000,000 shares of Class A Shares and 25,000,000 shares of Class B common stock, par value $0.0001 per share (“tag-along” rights in favor Class B Shares”), of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are which (A) 31,625,000 shares of Class A Shares are fully consistent with its financial needs, objectives issued and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including outstanding as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the date of this Equity Support Subscription Agreement and 7,906,250 shares of Class B Shares are issued and outstanding as of the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light date of its own business objectives, financial condition and expertise this Subscription Agreement and (B) this Equity Support Agreement has been duly approved 24,137,500 warrants, each entitling the holder thereof to purchase one Class A Share, are outstanding issued and authorized by directors outstanding as of the Issuer after due consideration by them date of the foregoing matters and those referred to in Section 5(q) abovethis Subscription Agreement.
Appears in 1 contract
Samples: Subscription Agreement (Osprey Technology Acquisition Corp.)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers that:
(a) a. The Issuer has been duly incorporated and is an exempted company duly incorporated, validly existing and as a corporation in good standing under the laws of the Cayman Islands. The Issuer has all State of Delaware, with corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As of the Closing Date, all the Equity Support b. The Acquired Shares will be have been duly authorized and, when issued and delivered to each Subscriber against full payment therefor for the Acquired Shares in accordance with the terms of this Equity Support Subscription Agreement, the Equity Support Acquired Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum and articles certificate of association incorporation (as in effect at such time amended as of issuancethe Closing Date) and bylaws (as amended as of the Closing Date) or under the Companies Act, as amended, laws of the Cayman IslandsState of Delaware.
c. This Subscription Agreement, the Other Subscription Agreements and the Transaction Agreement (ccollectively, the “Transaction Documents”) This Equity Support Agreement has have been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Agreement constitutes the valid and binding agreement of each Subscriber, this Equity Support Agreement is are enforceable against the Issuer in accordance with its their respective terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or and (ii) principles of equity, whether considered at law or equity.
(d) The issuance d. Assuming the accuracy of Subscriber’s representations and sale warranties in Section 4, the execution and delivery by the Issuer of all the Equity Support Shares pursuant to this Equity Support AgreementTransaction Documents, and the performance by the Issuer of its obligations hereunder under the Transaction Documents, including the issuance and under each Pledge Agreement and Control Agreement sale of the Acquired Shares and the consummation of the other transactions contemplated therebyherein, do not and will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that subject, which would be reasonably be expected to have have, individually or in the aggregate, a material adverse effect on the business, properties, financial condition condition, stockholders’ equity or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), ) or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under the terms of this Equity Support Subscription Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would be reasonably be expected to have have, individually or in the aggregate, a Material Adverse Effect or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Subscription Agreement.
e. There are no securities or instruments issued by or to which the Issuer is a party containing anti-dilution or similar provisions that will be triggered by the issuance of (ei) As of their respective filing dates, all reports required the Acquired Shares or (ii) the Class A Shares to be filed by issued pursuant to any Other Subscription Agreement, in each case, that have not been or will not be validly waived on or prior to the Closing Date.
f. The Issuer is not in default or violation (and no event has occurred which, with notice or the lapse of time or both, would constitute a default or violation) of any term, condition or provision of (i) the organizational documents of the Issuer, (ii) any loan or credit agreement, note, bond, mortgage, indenture, lease or other agreement, permit, franchise or license to which the Issuer with is now a party or by which the U.S. Securities and Exchange Commission Issuer’s properties or assets are bound, or (the “SEC”iii) since January 13any statute or any judgment, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements order, rule or regulation of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereofany court or governmental agency or body, there are no material outstanding domestic or unresolved comments in comment letters received by foreign, having jurisdiction over the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to or any of its properties, except, in the SEC Reportscase of clauses (ii) and (iii), for defaults or violations that have not had and would not be reasonably likely to have, individually or in the aggregate, a Material Adverse Effect.
(f) The g. Assuming the accuracy of Subscriber’s representations and warranties in Section 4, the Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the execution, delivery and performance by the Issuer of this Subscription Agreement (including, without limitation, the issuance of the Equity Support Shares pursuant to this Equity Support AgreementAcquired Shares), other than (i) filings the filing with the SECSecurities and Exchange Commission (the “Commission”) of the Registration Statement (as defined below), (ii) filings required by applicable state or federal securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support Agreement; 9(n), (iv) those required by The Nasdaq the New York Stock Market LLCExchange or such other applicable stock exchange on which the Issuer’s Class A Shares are then listed (the “Stock Exchange”), including with respect to obtaining approval of the Issuer’s stockholdersstockholder approval, and (v) those the failure of which to obtain would not be reasonably likely to have, individually or in the aggregate, a Material Adverse Effect or have a material adverse effect on the Issuer’s ability to consummate the transactions contemplated hereby, including the sale and issuance of the Acquired Shares.
h. The authorized capital stock of the Issuer consists of (i) 1,000,000 shares of preferred stock, par value $0.0001 per share (“Preferred Stock”), (ii) 70,000,000 Class A Shares, and (iii) 12,500,000 shares of Class B common stock, par value $0.0001 per share (“Class B Shares”). As of the date hereof and as of immediately prior to the Closing: (1) no shares of Preferred Stock are issued and outstanding, (2) 27,600,000 Class A Shares are issued and outstanding, (3) 6,900,000 Class B Shares are issued and outstanding, (4) 13,800,000 public warrants, each entitling the holder thereof to purchase one Class A Share at an exercise price of $11.50 per Class A Share, and (5) 7,270,000 private placement warrants, each entitling the holder thereof to purchase one Class A Share at an exercise price of $11.50 per Class A Share, are outstanding. All (i) issued and outstanding Class A Shares and Class B Shares have been duly authorized and validly issued, are fully paid and are non-assessable and are not subject to preemptive rights and (ii) outstanding warrants have been duly authorized and validly issued, are fully paid and are not subject to preemptive rights. Except as set forth above and pursuant to the Other Subscription Agreements and the Transaction Agreement, there are no outstanding options, warrants or other rights to subscribe for, purchase or acquire from the Issuer any Class A Shares, Class B Shares, or other equity interests in the Issuer, or securities convertible into or exchangeable or exercisable for such equity interests. As of the date hereof, the Issuer has no subsidiaries (other than Merger Sub) and does not own, directly or indirectly, interests or investments (whether equity or debt) in any person, whether incorporated or unincorporated. There are no stockholder agreements, voting trusts or other agreements or understandings to which the Issuer is a party or by which it is bound relating to the voting of any securities of the Issuer, other than (A) as set forth in the SEC Documents (as defined below) and (B) as contemplated by the Transaction Agreement.
i. The issued and outstanding Class A Shares are registered pursuant to Section 12(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and are listed for trading on the Stock Exchange. There is no suit, action, proceeding or investigation pending or, to the knowledge of the Issuer, threatened against the Issuer by the Stock Exchange or the Commission with respect to any intention by such entity to deregister the Class A Shares or prohibit or terminate the listing of the Class A Shares on the Stock Exchange. The Issuer has taken no action that is designed to terminate the registration of the Class A Shares under the Exchange Act. As of the Closing Date, the Acquired Shares will be expected approved for listing on the Stock Exchange, subject to official notice of issuance.
j. Assuming the accuracy of Subscriber’s representations and warranties set forth in Section 4, no registration under the Securities Act is required for the offer and sale of the Acquired Shares by the Issuer to Subscriber in the manner contemplated by this Subscription Agreement.
k. Neither the Issuer nor any person acting on its behalf has engaged or will engage in any form of general solicitation or general advertising (within the meaning of Regulation D of the Securities Act) in connection with any offer or sale of the Acquired Shares.
l. The Issuer has not entered into any side letter or similar agreement with any Other Subscriber or any other investor in connection with such Other Subscriber’s or such other investor’s direct or indirect investment in the Issuer other than (i) the Transaction Agreement, and (ii) the Other Subscription Agreements. The Other Subscription Agreements have not been amended in any material respect following the date of this Subscription Agreement and reflect the same Share Purchase Price and terms that are no more favorable to any such Other Subscriber thereunder than the terms of this Subscription Agreement.
m. The Issuer has made available to Subscriber (including via the Commission’s XXXXX system) a copy of each form, report, statement, schedule, prospectus, proxy, registration statement and other document, if any, filed by the Issuer with the Commission since its initial registration of the Class A Shares (the “SEC Documents”), which SEC Documents, as of their respective filing dates, complied in all material respects with the requirements of the Exchange Act applicable to the SEC Documents and the rules and regulations of the Commission promulgated thereunder applicable to the SEC Documents. None of the SEC Documents filed under the Exchange Act (except to the extent that information contained in any SEC Document has been superseded by a later timely filed SEC Document) contained, when filed or, if amended prior to the date of this Subscription Agreement, as of the date of such amendment with respect to those disclosures that are amended, any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; provided, that, with respect to the proxy statement to be filed by the Issuer with respect to the Transaction or any of its affiliates included in any SEC Document or filed as an exhibit thereto, the representation and warranty in this sentence is made to the Issuer’s knowledge. The Issuer has timely filed each report, statement, schedule, prospectus, and registration statement that the Issuer was required to file with the Commission since its inception. There are no material outstanding or unresolved comments in comment letters from the Staff of the Commission with respect to any of the SEC Documents.
n. Except for such matters as have not had and would not be reasonably likely to have, individually or in the aggregate, a Material Adverse Effect.
(g) As , as of the date hereof, there is no (i) suit, action, proceeding or arbitration before a governmental authority or arbitrator pending, or, to the knowledge of the Issuer, threatened against the Issuer or (ii) judgment, decree, injunction, ruling or order of any governmental entity or arbitrator outstanding against the Issuer.
o. Except for placement fees payable to Credit Suisse Securities (USA) LLC, Xxxxxxxxx LLC, and PJT Partners LP in their capacity as placement agents for the offer and sale of the Acquired Shares (in such capacity, the “Placement Agents”), the Issuer has not paid, and is not obligated to pay, any brokerage, finder’s or other commission or similar fee in connection with its issuance and sale of the Acquired Shares, including, for the avoidance of doubt, any fee or commission payable to any stockholder or affiliate of the Issuer.
p. None of the Issuer, its subsidiaries or any of their affiliates, nor any person acting on their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would require registration of the issuance of any of the Acquired Shares under the Securities Act, whether through integration with prior offerings pursuant to Rule 502(a) of the Securities Act or otherwise.
q. The Issuer has not received any written communication from a governmental authority that alleges entity alleging that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to havenot, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
(h) Assuming the accuracy of each Subscriber’s representations and warranties set forth in Section 6 of this Equity Support Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Shares by the Issuer to each Subscribers.
(i) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) r. The Issuer is in compliance with all applicable laws, except where such non-compliance would not under any obligation to pay any broker’s fee or commission in connection with the sale of the Equity Support Shares.
(l) The Issuer is not, and the Issuer after the consummation of the transaction contemplated hereby, will not reasonably be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third partieshave a Material Adverse Effect.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers Subscriber that:
(a) The Issuer is an exempted company duly incorporated, is validly existing and is in good standing under the laws of the Cayman Islands. The Issuer has all , with corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As of the Closing Date, all the Equity Support Acquired Shares will be have been duly authorized by the Issuer and, when issued and delivered to each the Subscriber against full payment therefor for the Acquired Shares in accordance with the terms of this Equity Support AgreementSubscription Agreement and registered in the Issuer’s share register or register of members (as applicable), the Equity Support Acquired Shares will be validly issued, fully paid and non-assessable assessable, free and clear of any liens or other restrictions whatsoever (other than those arising under this Subscription Agreement or applicable state or federal securities laws) and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum and articles of association (as in effect at such time of issuance) or under the Companies Act, as amended, laws of the Cayman Islands.
(c) This Equity Support Subscription Agreement has been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Subscription Agreement constitutes the valid and binding agreement of each the Subscriber, this Equity Support Subscription Agreement is enforceable against the Issuer in accordance with its terms, except as may be limited or otherwise affected by (i) subject to applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar laws affecting or other laws relating to or affecting the creditors’ rights of creditors generallygenerally and subject, or (ii) as to enforceability, to general principles of equity, whether such enforceability is considered in a proceeding in equity or at law or equitylaw.
(d) The issuance and sale of the Acquired Shares and the compliance by the Issuer with all of all the Equity Support Shares pursuant to provisions of this Equity Support AgreementSubscription Agreement and the consummation of the transactions herein will be done in accordance with The Nasdaq Stock Market LLC (“Nasdaq”) marketplace rules, and the performance consummation of its obligations hereunder and under each Pledge Agreement and Control Agreement and the other transactions contemplated therebyherein, do not and will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreementsubject; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency agency, taxing authority or regulatory body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that that, in the cases of clauses (i) and (iii), would reasonably be expected to have have, individually or in the aggregate, a material adverse effect on the business, properties, financial condition or results of operations of the Issuer and its subsidiaries taken as a whole (a “Material Adverse Effect Effect”) or materially affect the validity or enforceability of the Equity Support Acquired Shares or the ability or legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Subscription Agreement.
(e) As of their respective filing dates, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any of the SEC Reports.
(f) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other United States federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the execution, delivery and performance by the Issuer of this Subscription Agreement (including, without limitation, the issuance of the Equity Support Shares pursuant to this Equity Support AgreementAcquired Shares), other than (i) filings the filing with the SECUnited States Securities and Exchange Commission (the “Commission”) of the Registration Statement (as defined below), (ii) the filings required by applicable state or federal securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support Agreement; 10(n), (iv) those required by The Nasdaq Stock Market LLCNasdaq, including with respect to obtaining approval of the Issuer’s stockholdersshareholder approval, and (v) those any consent, waiver, authorization or order of, notice to, or filing or registration, the failure of which to obtain would not be reasonably be expected likely to have, individually or in the aggregate, a Material Adverse Effect.
(gf) As There is no (i) investigation, action, suit, claim or other proceeding, in each case by or before any governmental authority pending, or, to the knowledge of the Issuer as of the date hereofof this Subscription Agreement, threatened in writing against the Issuer that affects or would reasonably be expected to affect the Issuer’s ability to consummate the transactions contemplated by this Subscription Agreement, or (ii) judgment, decree, injunction, ruling or order of any governmental entity or arbitrator outstanding against the Issuer that affects or would be reasonably likely to have, individually or in the aggregate, a material adverse effect on the validity of the Acquired Shares or the legal authority of the Issuer to enter into and perform its obligations under this Subscription Agreement.
(g) The Issuer is in compliance with all applicable laws, except where such non-compliance would not reasonably be expected to have, individually or in the aggregate, a material adverse effect on the validity of the Acquired Shares or the legal authority of the Issuer to enter into and perform its obligations under this Subscription Agreement. The Issuer has not received any written communication from a governmental authority that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effectmaterial adverse effect on the validity of the Acquired Shares or the legal authority of the Issuer to enter into and perform its obligations under this Subscription Agreement.
(h) Assuming the accuracy of each Subscriber’s representations and warranties set forth in Section 6 of this Equity Support Agreement4, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Acquired Shares by the Issuer to each SubscribersSubscriber in the manner contemplated by this Subscription Agreement.
(i) Neither the Issuer nor any person acting on its behalf has offered engaged or sold the Equity Support Shares by will engage in any form of general solicitation or general advertising in violation (within the meaning of Regulation D of the Securities Act) in connection with any offer or sale of the Acquired Shares.
(j) Following Neither the Transaction ClosingIssuer, the issued and outstanding Shares nor any person acting on its behalf has, directly or indirectly, made any offers or sales of any Issuer security or solicited any offers to buy any security under circumstances that would adversely affect reliance by the Issuer will be registered pursuant to on Section 12(b4(a)(2) of the Exchange Act. Following Securities Act for the Closing, exemption from registration for the Equity Support Shares are expected to be registered under transactions contemplated hereby or would require registration of the Exchange Actissuance of the Acquired Shares.
(k) The Except as provided in this Subscription Agreement, the Other Subscription Agreements, and the agreements in relation to the investment of $55,000,000 by a certain asset management fund and/or its Affiliates in the Company by way of subscribing for certain convertible debentures of the Company and Company Ordinary Shares, none of the Issuer, its subsidiaries or any of their affiliates, nor any person acting on their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would require registration of the issuance of any of the Acquired Shares under the Securities Act, whether through integration with prior offerings pursuant to Rule 502(a) of the Securities Act or otherwise.
(l) Except for placement fees payable to UBS Securities LLC, Xxxxxxx Xxxxx (Asia Pacific) Limited and Inte Securities LLC, in their capacities as placement agents for the offer and sale of the Acquired Shares (in such capacities, the “Placement Agents”), the Issuer has not paid, and is not under obligated to pay, any obligation to pay any brokerbrokerage, finder’s or other fee or commission in connection with the its issuance and sale of the Equity Support Acquired Shares.
, including, for the avoidance of doubt, any fee or commission payable to any shareholder or affiliate, as defined in Rule 144 under the Securities Act (l) The Issuer is not“Affiliate”), and the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amendedIssuer.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an No “eligible contract participantbad actor” (as such term is defined disqualifying event described in Section 1a(18Rule 506(d)(1)(i)-(viii) of the Commodity Exchange Securities Act (a “Disqualification Event”) is applicable to the Issuer or, to the Issuer’s knowledge, any Issuer Covered Person, except for a Disqualification Event as to which Rule 506(d)(2)(ii-iv) or (d)(3), is applicable. “Issuer Covered Person” means, with respect to the Issuer as an “issuer” for purposes of Rule 506 promulgated under the Securities Act, as amended, other than a any person listed in the first paragraph of Rule 506(d)(1). The Issuer represents that is an eligible contract participant under Section 1a(18)(C) it has exercised reasonable care to determine the accuracy of the Commodity Exchange Act).
(n) Neither representation made by the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debtsthis paragraph.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers as of the date hereof and the Closing Date, that:
(a) a. The Issuer has been duly incorporated and is an exempted company duly incorporated, validly existing and as a corporation in good standing under the laws of the Cayman Islands. The Issuer has all State of Delaware, with corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. .
b. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As of the Closing Date, all the Equity Support Acquired Shares will be have been duly authorized and, when issued and delivered to each Subscriber against full payment therefor for the Acquired Shares in accordance with the terms of this Equity Support Subscription Agreement, the Equity Support Acquired Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Charter and the Issuer’s memorandum and articles of association bylaws (as in effect at such time of issuance) or under the Companies Act, as amended, laws of the Cayman IslandsState of Delaware.
c. This Subscription Agreement, the Other Subscription Agreements and the Combination Agreement (ccollectively, the “Transaction Documents”) This Equity Support Agreement has have been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Agreement constitutes and the Transaction Documents constitute the valid and legally binding agreement obligation of each Subscriberthe Issuer, this Equity Support Agreement is enforceable against the Issuer in accordance with its their respective terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or generally and (ii) principles of equity, whether considered at law or equity.
(d) The issuance d. Assuming the accuracy of Subscriber’s representations and sale warranties in Section 4, the execution and delivery by the Issuer of all the Equity Support Shares pursuant to this Equity Support AgreementTransaction Documents, and the performance by the Issuer of its obligations hereunder under the Transaction Documents, including the issuance and under each Pledge Agreement and Control Agreement sale of the Acquired Shares and the transactions contemplated therebyconsummation of the Transaction, do not and will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that subject, which would reasonably be expected to have have, individually or in the aggregate, a material adverse effect on the business, properties, financial condition condition, stockholders’ equity or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), ) or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under the terms of this Equity Support Subscription Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have have, individually or in the aggregate, a Material Adverse Effect or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under the terms of this Equity Support Subscription Agreement.
e. There are no securities or instruments issued by or to which the Issuer is a party containing anti-dilution or similar provisions that will be triggered by the issuance of (ei) As of their respective filing dates, all reports required the Acquired Shares or (ii) the Class A Shares to be filed by issued pursuant to any Other Subscription Agreement, in each case, that have not been or will not be validly waived on or prior to the Closing Date.
f. The Issuer is not in default or violation (and no event has occurred which, with notice or the lapse of time or both, would constitute a default or violation) of any term, condition or provision of (i) the organizational documents of the Issuer, (ii) any loan or credit agreement, note, bond, mortgage, indenture, lease or other agreement, permit, franchise or license to which the Issuer with is now a party or by which the U.S. Securities and Exchange Commission Issuer’s properties or assets are bound or (the “SEC”iii) since January 13any statute or any judgment, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements order, rule or regulation of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereofany court or governmental agency or body, there are no material outstanding domestic or unresolved comments in comment letters received by foreign, having jurisdiction over the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to or any of its properties, except, in the SEC Reportscase of clauses (ii) and (iii), for defaults or violations that have not had and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(f) The g. Assuming the accuracy of Subscriber’s representations and warranties in Section 4, the Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization (including the Nasdaq) or other person in connection with the execution, delivery and performance by the Issuer of this Subscription Agreement (including, without limitation, the issuance of the Equity Support Shares pursuant to this Equity Support AgreementAcquired Shares), other than (i) filings the filing with the SECSecurities and Exchange Commission (the “Commission”) of the Registration Statement (as defined below), (ii) the filings required by applicable state or federal securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support Agreement; 9.n, (iv) those required by The Nasdaq Stock Market LLCthe Nasdaq, including with respect to obtaining approval of the Issuer’s stockholdersstockholder approval, and (v) those the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse EffectEffect or have a material adverse effect on the Issuer’s ability to consummate the transactions contemplated hereby, including the sale and issuance of the Acquired Shares.
(g) h. As of the date hereof, the authorized capital stock of the Issuer consists of (i) 1,000,000 shares of preferred stock, par value $0.0001 per share (“Preferred Stock”), (ii) 200,000,000 Class A Shares and (iii) 20,000,000 shares of Class B common stock, par value $0.0001 per share, (“Class B Shares”). As of the date hereof and as of immediately prior to the Closing: (A) no shares of Preferred Stock are issued and outstanding, (B) 17,439,750 Class A Shares are issued and outstanding, (C) 4,312,500 Class B Shares are issued and outstanding and (D) 19,612,500 warrants, each entitling the holder thereof to purchase one Class A Share at an exercise price of $11.50 per Class A Share, are outstanding.
i. The Issuer has not received any written communication from a governmental authority entity that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
j. The issued and outstanding Class A Shares are registered pursuant to Section 12(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and are listed for trading on Nasdaq. There is no suit, action, proceeding or investigation pending or, to the knowledge of the Issuer, threatened against the Issuer by Nasdaq or the Commission with respect to any intention by such entity to deregister the Class A Shares or prohibit or terminate the listing of the Class A Shares on Nasdaq. Except in connection with the Transaction, the Issuer has taken no action that is designed to terminate the registration of the Class A Shares under the Exchange Act or the listing of the Class A Shares on the Nasdaq.
k. Assuming the accuracy of Subscriber’s representations and warranties set forth in Section 4, no registration under the Securities Act is required for the offer and sale of the Acquired Shares by the Issuer to Subscriber in the manner contemplated by this Subscription Agreement.
l. Neither the Issuer nor any person acting on its behalf has engaged or will engage in any form of general solicitation or general advertising (within the meaning of Regulation D of the Securities Act) in connection with any offer or sale of the Acquired Shares.
m. Neither the Issuer nor the Sponsor, has entered into any subscription agreement, side letter or other agreement with any Other Subscriber or any other investor in connection with such Other Subscriber’s or investor’s direct or indirect investment in the Issuer other than (i) the Combination Agreement and any other agreement contemplated or permitted by the Combination Agreement, (ii) the Other Subscription Agreements, (iii) that certain letter agreement, dated August 12, 2021, by and among the Sponsor, the Issuer and the other parties thereto, (iv) that certain letter agreement with the Sponsor, to be dated as of the date hereof, (v) that certain letter agreement with the underwriters in the Issuer’s initial public offering, to be dated as of the date hereof and (vi) agreements or forms thereof that have been publicly filed via the Commission’s XXXXX system, including filings made by the Issuer.
n. The Issuer has made available to Subscriber (including via the Commission’s XXXXX system) a copy of each form, report, statement, schedule, prospectus, proxy, registration statement and other document, if any, filed by the Issuer with the Commission since its initial registration of the Class A Shares (the “SEC Documents”), which SEC Documents, as of their respective filing dates, complied in all material respects with the requirements of the Exchange Act applicable to the SEC Documents and the rules and regulations of the Commission promulgated thereunder applicable to the SEC Documents. None of the SEC Documents filed under the Exchange Act (except to the extent that information contained in any SEC Document has been superseded by a later timely filed SEC Document) contained, when filed, any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein not misleading, in the case of any SEC Document that is a registration statement, or included, when filed, any untrue statement of a material fact or omitted to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in the case of all other SEC Documents; provided, that, with respect to the proxy statement to be filed by the Issuer with respect to the Transaction or any of its affiliates included in any SEC Document or filed as an exhibit thereto, the representation and warranty in this sentence is made to the Issuer’s knowledge.
o. Except for such matters as have not had and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, as of the date hereof, there is no (i) proceeding pending, or, to the knowledge of the Issuer, threatened against the Issuer or (ii) judgment, decree, injunction, ruling or order of any governmental entity or arbitrator outstanding against the Issuer.
(h) Assuming the accuracy of each Subscriber’s representations and warranties set forth p. Except for any placement fees payable to Imperial Capital, LLC, in Section 6 of this Equity Support Agreement, no registration under the Securities Act of 1933, its capacity as amended (the “Securities Act”), is required placement agent for the offer and sale of the Equity Support Acquired Shares by (in such capacity, the “Placement Agent”), the Issuer to each Subscribers.
(i) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction Closingnot paid, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under obligated to pay, any obligation to pay any brokerbrokerage, finder’s or other commission or similar fee or commission in connection with the its issuance and sale of the Equity Support Acquired Shares.
(l) The Issuer is not, and the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers that:
(a) The Issuer has been duly incorporated and is an exempted company duly incorporated, validly existing and as a corporation in good standing under the laws of the Cayman Islands. The Issuer has all State of Delaware, with corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and and, subject to obtaining all approvals necessary for the consummation of the Transactions (collectively, the “Required Approvals”), to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As of the Closing DateSubscription Closing, all the Equity Support Acquired Shares will be have been duly authorized and, when issued and delivered to each Subscriber against full payment therefor of the Purchase Price for the Acquired Shares in accordance with the terms of this Equity Support AgreementSubscription Agreement and registered with the Transfer Agent, the Equity Support Acquired Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum certificate of incorporation and articles of association (as in effect at such time of issuance) bylaws or under the Companies Act, as amended, laws of the Cayman IslandsState of Delaware.
(c) This Equity Support Subscription Agreement has been duly authorized, executed and delivered by the Issuer andand assuming the due authorization, assuming that this Equity Support Agreement constitutes execution and delivery of the valid and binding agreement of each same by the Subscriber, this Equity Support Agreement is enforceable against the Issuer it in accordance with its terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, reorganization, fraudulent conveyance, reorganizationarrangement, moratorium or other laws relating to or affecting the rights of creditors generally, or and (ii) principles of equity, whether considered at law or equity.
(d) The issuance Subject to obtaining the Required Approvals, the execution, delivery and sale performance by the Issuer of all the Equity Support Shares pursuant to this Equity Support Subscription Agreement, including the issuance and sale of the performance of its obligations hereunder and under each Pledge Agreement and Control Agreement and the transactions contemplated therebyAcquired Shares, will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreementsubject; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that that, in the case of clauses (i) and (iii), would be reasonably be expected likely to have a Material Adverse Effect material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries taken as a whole or materially and adversely affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply perform in all material respects with its obligations under this Equity Support Agreementhereunder (a “Material Adverse Effect”).
(e) As of their respective filing dates, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any of the SEC Reports.
(f) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the execution, delivery and performance by the Issuer of this Subscription Agreement (including, without limitation, the issuance of the Equity Support Shares pursuant to this Equity Support AgreementAcquired Shares), other than (i) filings the filing with the SECSecurities and Exchange Commission (the “Commission”) of the Registration Statement (as defined below), (ii) filings required by applicable state securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support AgreementRequired Approvals; (iv) those required by The Nasdaq the New York Stock Market LLCExchange or other applicable stock exchange on which the Acquired Shares are then listed (“NYSE”), including with respect to obtaining approval of the Issuer’s stockholders, and (v) those the failure of which to obtain would not be reasonably be expected likely to have, individually or in the aggregate, a Material Adverse Effect.
(f) Assuming the accuracy of the Subscriber’s representations and warranties set forth in Section 4 of this Subscription Agreement, no registration under the Securities Act is required for the offer and sale of the Acquired Shares by the Issuer to the Subscriber.
(g) Neither the Issuer nor any person acting on its behalf has offered or sold the Acquired Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(h) As of their respective filing dates, all reports required to be filed by the Issuer with the Commission since November 5, 2019 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations of the Commission promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the Commission with respect to any of the SEC Reports.
(i) As of the date hereof, the issued and outstanding Class A Shares of the Issuer are registered pursuant to Section 12(b) of the Exchange Act and are listed for trading on the NYSE. There is no suit, action, claim, proceeding or investigation pending or, to the knowledge of the Issuer, threatened against the Issuer by the NYSE or the Commission with respect to any intention by such entity to deregister the Class A Shares or to prohibit or terminate the listing of the Class A Shares on the NYSE, excluding, for the purposes of clarity, the customary ongoing review by NYSE in connection with the Transactions. The Issuer has taken no action that is designed to terminate the registration of the Class A Shares under the Exchange Act prior to the Subscription Closing.
(j) As of the date hereof, Issuer has not received any written communication from a governmental authority that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(h) Assuming the accuracy of each Subscriber’s representations and warranties set forth in Section 6 of this Equity Support Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Shares by the Issuer to each Subscribers.
(i) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation acknowledges and agrees that, notwithstanding anything herein to pay any broker’s fee or commission the contrary, the Acquired Shares may be pledged by Subscriber in connection with the a bona fide margin agreement, which shall not be deemed to be a transfer, sale or assignment of the Equity Support SharesAcquired Shares hereunder, and Subscriber effecting a pledge of Acquired Shares shall not be required to provide the Issuer with any notice thereof or otherwise make any delivery to the Issuer pursuant to this Subscription Agreement. The Issuer hereby agrees to execute and deliver such documentation as a pledgee of the Acquired Shares may reasonably request in connection with a pledge of the Acquired Shares to such pledgee by Subscriber.
(l) The There are no securities or instruments issued by or to which the Issuer is nota party containing anti-dilution or similar provisions that will be triggered by the issuance of (i) the Acquired Shares or (ii) the Class A Shares to be issued pursuant to any Other Subscription Agreement, and the Issuer after the consummation of the transaction contemplated herebyin each case, that have not been or will not be required validly waived on or prior to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amendedClosing Date.
(m) The authorized capital stock of Issuer is, and the Issuer after the consummation consists of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is1,000,000 shares of preferred stock, par value $0.0001 per share, of which no shares are issued or shall be, “insolvent” (outstanding as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 date of the United States Code)) and this Subscription Agreement, (ii) for the purposes 175,000,000 shares of Cayman Islands lawcommon stock, is consisting of 150,000,000 shares of Class A Shares and will be unable to pay its debts.
25,000,000 shares of Class B common stock, par value $0.0001 per share (o“Class B Shares”), of which (A) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person 31,625,000 shares of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted Class A Shares are issued and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As outstanding as of the date hereof, each of this Subscription Agreement and 7,906,250 shares of Class B Shares are issued and outstanding as of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by date of this Equity Support Subscription Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved 24,137,500 warrants, each entitling the holder thereof to purchase one Class A Share, are outstanding issued and authorized by directors outstanding as of the Issuer after due consideration by them date of the foregoing matters and those referred to in Section 5(q) abovethis Subscription Agreement.
Appears in 1 contract
Samples: Subscription Agreement (Osprey Technology Acquisition Corp.)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers that:
(a) a. The Issuer has been incorporated and is an exempted company duly incorporated, validly existing and in good standing as a company limited by shares incorporated under the laws of the Cayman British Virgin Islands in good standing (or such equivalent concept to the extent it exists under the laws of the British Virgin Islands. The Issuer has all ) under the laws of the British Virgin Islands, with corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As of the Closing Date, all the Equity Support b. The Acquired Shares will be have been duly authorized and, when issued and delivered to each Subscriber against full payment therefor for the Acquired Shares in accordance with the terms of this Equity Support AgreementSubscription Agreement and entered in the Issuer’s register of members, the Equity Support Acquired Shares will be validly issued, fully paid and non-assessable (meaning that the holders of the Acquired Shares will not by reason of merely being such a holder, be subject to assessment or calls by the Issuer or its creditors for further payment on such Acquired Shares) and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum and articles of association (as in effect at such time of issuance) or under the Companies Act, as amended, laws of the Cayman British Virgin Islands.
(c) c. This Equity Support Subscription Agreement has been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Agreement constitutes the valid and binding agreement of each Subscriber, this Equity Support Agreement is enforceable against the Issuer in accordance with its terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or and (ii) principles of equity, whether considered at law or equity.
(d) The issuance d. Assuming the accuracy of Subscriber’s representations and sale warranties in Section 5, the execution and delivery by the Issuer of all the Equity Support Shares pursuant to this Equity Support Subscription Agreement, and the performance by the Issuer of its obligations hereunder under this Subscription Agreement, including the issuance and under each Pledge Agreement and Control Agreement sale of the Acquired Shares and the consummation of the other transactions contemplated therebyherein, do not and will not (i) conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that subject, which would be reasonably be expected to have have, individually or in the aggregate, a material adverse effect on the business, properties, financial condition condition, shareholders’ equity or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), ) or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under the terms of this Equity Support Subscription Agreement; (ii) result in any a violation of the provisions memorandum and articles of the organizational documents association of the Issuer; or (iii) result in any a violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties properties, except in the case of each of clauses (i) and (iii), that would not be reasonably be expected to have have, individually or in the aggregate, a Material Adverse Effect or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Subscription Agreement.
e. There are no securities or instruments issued by or to which the Issuer is a party containing anti-dilution or similar provisions that will be triggered by the issuance of (ei) As of their respective filing dates, all reports required the Acquired Shares or (ii) the Issuer Class A Shares to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect issued pursuant to any of Other Subscription Agreement, in each case, that have not been or will not be validly waived on or prior to the SEC ReportsClosing Date.
(f) The f. Assuming the accuracy of Subscriber’s representations and warranties in Section 5, the Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the execution, delivery and performance by the Issuer of this Subscription Agreement (including, without limitation, the issuance of the Equity Support Shares pursuant to this Equity Support AgreementAcquired Shares), other than (i) filings the filing with the SECRegistrar of Corporate Affairs in the British Virgin Islands of an amended and restated memorandum and articles of association of the Issuer as further described in the Registration Statement (as defined below), (ii) the filing with the Commission of the Registration Statement (as defined below), (iii) filings required by applicable state securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support Agreement; (iv) those required by The Nasdaq Stock Market LLC, including with respect to obtaining approval of the Issuer’s stockholdersNASDAQ, and (v) those the failure of which to obtain would not be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect or have a material adverse effect on the Issuer’s ability to consummate the transactions contemplated hereby, including the sale and issuance of the Acquired Shares.
g. As of the date hereof, the authorized shares of the Issuer consists of 25,000 Issuer Class A Shares and 25,000 Class B shares, par value $0.0001 per share (“Issuer Class B Shares”). As of the date hereof, one (1) Issuer Class A Share is issued and outstanding and no Issuer Class B Shares are issued and outstanding.
h. Assuming the accuracy of Subscriber’s representations and warranties set forth in Section 5, no registration under the Securities Act is required for the offer and sale of the Acquired Shares by the Issuer to Subscriber in the manner contemplated by this Subscription Agreement.
i. Neither the Issuer nor any person acting on its behalf has engaged or will engage in any form of general solicitation or general advertising (within the meaning of Regulation D of the Securities Act) in connection with any offer or sale of the Acquired Shares.
j. As of the date hereof, the Issuer has not entered into any side letter or similar agreement with any Other Subscriber or any other investor in connection with such Other Subscriber’s or such other investor’s direct or indirect investment in the Issuer other than (i) the Combination Agreement and (ii) the Other Subscription Agreements (and no Other Subscription Agreement provided for a purchase price per share that is lower than the Share Purchase Price, other than to the extent any Other Subscriber has agreed to apply prior to the Closing Date all or a portion of its Purchase Price (as defined in any such Other Subscription Agreement) to the purchase of exchangeable notes of the Company, exchangeable on the Closing Date for Issuer Class A Shares at a discount to the Share Purchase Price) and (iii) agreements or forms thereof that have been publicly filed via the Commission’s XXXXX system, including filings made by either GMBT or the Issuer. The Other Subscription Agreements have not been amended in any material respect following the date of this Subscription Agreement and reflect the same Share Purchase Price and economic terms that are no more favorable in any material respect to any such Other Subscriber thereunder than the terms of this Subscription Agreement (other than the alternative settlement mechanics available to investment companies registered under the Investment Company Act or investors advised by an investment adviser subject to regulation under the Investment Advisers Act as contemplated by Section 2(b) hereof and other than to the extent any Other Subscriber has agreed to apply prior to the Closing Date all or a portion of its Purchase Price (as defined in the applicable Other Subscription Agreement) to the purchase of exchangeable notes of the Company, exchangeable on the Closing Date for Issuer Class A Shares at a discount to the Share Purchase Price).
k. Except for such matters as have not had and would not be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect.
, there is no (gi) As of the date hereofsuit, the Issuer has not received any written communication from action, proceeding or arbitration before a governmental authority that alleges that or arbitrator pending, or, to the knowledge of the Issuer, threatened against the Issuer is not in compliance with or is in default (ii) judgment, decree, injunction, ruling or violation order of any applicable law, except where such non-compliance, default governmental entity or violation would not reasonably be expected to have, individually or in arbitrator outstanding against the aggregate, a Material Adverse EffectIssuer.
l. Except for placement fees payable to Barclays Capital Inc. (h) Assuming the accuracy of each Subscriber’s representations and warranties set forth in Section 6 of this Equity Support Agreement, no registration under the Securities Act of 1933, as amended (the “Securities ActBarclays”), is required Guggenheim Securities, LLC (“Guggenheim Securities”) or MPW Capital Advisors Limited (“MPW”), in their capacity as placement agents for the offer and sale of the Equity Support Acquired Shares by (in such capacity, together, the “Placement Agents”), the Issuer has not paid, and is not obligated to each Subscriberspay, any brokerage, finder’s or other commission or similar fee in connection with its issuance and sale of the Acquired Shares.
(i) Neither m. None of the Issuer Issuer, its subsidiaries or any of their affiliates, nor any person acting on its their behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Equity Support Shares.
(l) The Issuer is not, and the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have nothas, directly or indirectly, negotiated made any offers or entered into an Excluded Financing with sales of any other parties for the benefit security or solicited any offers to buy any security, under circumstances that would require registration of the Issuer, the SPAC, the shareholders issuance of any of the Issuer or Acquired Shares under the shareholders Securities Act, whether through integration with prior offerings pursuant to Rule 502(a) of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o)Securities Act or otherwise.
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Samples: Subscription Agreement (Queen's Gambit Growth Capital)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers Subscriber that:
(a) The Issuer (i) is an exempted company duly incorporatedorganized, validly existing and in good standing under the laws of its jurisdiction of incorporation, (ii) has the Cayman Islands. The Issuer has all requisite power (corporate or otherwise) and authority to own, lease and operate its properties and conduct properties, to carry on its business as presently it is now being conducted and to enter into, deliver into and perform its obligations under this Equity Support Subscription Agreement. As , the Transaction Agreement and any other agreement to which it is a party in connection with the Transaction (in each case, subject to the terms of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islandsapplicable agreement).
(b) As of the Closing DateClosing, all the Equity Support Subscribed Shares will be duly authorized and, when issued and delivered to each Subscriber against full payment therefor in accordance with the terms of this Equity Support Subscription Agreement, the Equity Support Shares will be validly issued, fully paid paid, free and clear of any liens, encumbrances (other than those arising under applicable securities laws or as otherwise provided herein), and non-assessable and will not have been issued in violation of or subject to any preemptive rights or other similar rights created under the Issuer’s memorandum and articles of association organizational documents (as in effect at such the time of issuance) ), the laws of its jurisdiction of incorporation, or under the Companies Actpursuant to any other understanding, as amendedright, of the Cayman Islandsagreement, or otherwise.
(c) This Equity Support Subscription Agreement has been duly authorized, executed and delivered by the Issuer andIssuer, and assuming that the due authorization, execution and delivery of the same by Subscriber and VIH, this Equity Support Subscription Agreement constitutes shall constitute the valid and legally binding agreement obligation of each Subscriberthe Issuer, this Equity Support Agreement is enforceable against the Issuer in accordance with its terms, except as such enforceability may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other and similar laws relating to or affecting the rights of creditors generally, or generally and (ii) principles the availability of equity, whether considered at law or equityequitable remedies.
(d) The Assuming the accuracy of the representations and warranties of Subscriber, the execution and delivery of this Subscription Agreement, the issuance and sale of the Subscribed Shares and the compliance by the Issuer with all of all the Equity Support Shares pursuant to provisions of this Equity Support Agreement, and the performance of its obligations hereunder and under each Pledge Agreement and Control Subscription Agreement and the consummation of the transactions contemplated thereby, herein will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have a Material Adverse Effect or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreement.
(e) As of their respective filing dates, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any of the SEC Reports.
(f) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the issuance of the Equity Support Shares pursuant to this Equity Support Agreement, other than (i) filings with the SEC, (ii) filings required by applicable state securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support Agreement; (iv) those required by The Nasdaq Stock Market LLC, including with respect to obtaining approval of the Issuer’s stockholders, and (v) those the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(g) As of the date hereof, the Issuer has not received any written communication from a governmental authority that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(h) Assuming the accuracy of each Subscriber’s representations and warranties set forth in Section 6 of this Equity Support Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Shares by the Issuer to each Subscribers.
(i) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Equity Support Shares.
(l) The Issuer is not, and the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.any
Appears in 1 contract
Samples: Subscription Agreement (VPC Impact Acquisition Holdings II)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers that:
(a) The Issuer has been duly incorporated and is an exempted company duly incorporated, validly existing and as a corporation in good standing under the laws of the Cayman Islands. The Issuer has all State of Delaware, with corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As of the Closing Date, all the Equity Support Acquired Shares will be duly authorized by the Issuer and, when issued and delivered to each Subscriber against full payment therefor for the Acquired Shares in accordance with the terms of this Equity Support Subscription Agreement, the Equity Support Acquired Shares will be validly issued, fully paid and non-assessable assessable, free and clear of all liens or other restrictions (except as otherwise stated herein) and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum certificate of incorporation and articles of association bylaws (each, as in effect at such time of issuance) or amended concurrently with the Closing), under the Companies Act, as amended, laws of the Cayman IslandsState of Delaware, under any agreement or instrument to which the Issuer is a party or by which the Issuer is bound, or otherwise.
(c) This Equity Support Agreement has Subscription Agreement, the Business Combination Agreement, the Other Subscription Agreements and any other agreements related to or executed in connection with the Transactions (collectively, the “Transaction Documents”) have been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Agreement constitutes the Transaction Documents have been duly authorized, executed and delivered by the other parties thereto, are valid and binding agreement obligations of each Subscriberthe Issuer, this Equity Support Agreement is and are enforceable against the Issuer it in accordance with its their terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, reorganization, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or and (ii) principles of equity, whether considered at law or in equity.
(d) The execution, delivery and performance of this Subscription Agreement and the other Transaction Documents, including the issuance and sale by of the Issuer of all the Equity Support Acquired Shares pursuant to this Equity Support Agreement, and the performance consummation of its obligations hereunder the Transactions and under each Pledge Agreement and Control Agreement and the other transactions contemplated hereby and thereby, do not and will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreementsubject; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency agency, taxing authority or regulatory body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would properties, that, in the case of clause (i) or (iii), would, individually or in the aggregate,reasonably be expected to have a Material Adverse Effect Effect. For purposes of this Subscription Agreement, a “Material Adverse Effect” means an event, change, development, occurrence, condition or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreement.
(e) As of their respective filing dates, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC effect with respect to any of the SEC Reports.
Issuer and its subsidiaries, taken together as a whole (f) The Issuer is not required to obtain any consenton a consolidated basis), waivertreating the Transactions as having been consummated, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the issuance of the Equity Support Shares pursuant to this Equity Support Agreement, other than (i) filings with the SEC, (ii) filings required by applicable state securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support Agreement; (iv) those required by The Nasdaq Stock Market LLC, including with respect to obtaining approval of the Issuer’s stockholders, and (v) those the failure of which to obtain would not be reasonably be expected to havethat, individually or in the aggregate, a Material Adverse Effect.
(g) As of the date hereof, the Issuer has not received any written communication from a governmental authority that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to havehave a material adverse effect on the business, properties, assets, liabilities, operations, financial condition, stockholders’ equity or results of operations of the Issuer or Target or their respective subsidiaries individually or in taken as a whole and including the aggregatecombined company after giving effect to the Transactions, a Material Adverse Effect.
or materially affect, impede, or prevent the Issuer’s ability to consummate the (hi) Assuming transactions contemplated hereby, including the accuracy of each Subscriber’s representations and warranties set forth in Section 6 of this Equity Support Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer issuance and sale of the Equity Support Acquired Shares by the Issuer to each Subscribers.
(i) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Equity Support Shares.
(l) The Issuer is not, and the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debtsTransactions.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Issuer Representations and Warranties. For purposes of this Section 4, the term “Issuer” shall refer to the Issuer as of the date hereof and, for purposes of only representations contained in paragraphs (h), (i), (k), (n), (p),and (r) of this Section 4 and to the extent such representations and warranties are made as of the Closing Date, the combined company after giving effect to the Acquisition. The Issuer represents and warrants to each Subscribers that:
(a) The Issuer has been duly incorporated and is an exempted company duly incorporated, validly existing and as a corporation in good standing under the laws of the Cayman Islands. The Issuer has all State of Delaware, with corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, the Issuer will be duly incorporated, validly existing Registration Rights Agreement (as defined below) and in good standing under the laws of the Cayman IslandsPurchase Agreement.
(b) As of the Closing Date, all the Equity Support The Acquired Shares will be have been duly authorized and, when issued and delivered to each Subscriber against full payment therefor for the Acquired Shares in accordance with the terms of this Equity Support AgreementSubscription Agreement and duly registered, the Equity Support Acquired Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum amended and articles restated certificate of association (as in effect at such time of issuance) incorporation and bylaws or under the Companies Act, as amended, laws of the Cayman IslandsState of Delaware.
(c) The maximum number of Common Shares issuable upon conversion of the Preferred Shares pursuant to Subscriber’s Preferred Subscription have been duly authorized and reserved and, when such Common Shares are issued upon conversion of such Preferred Shares in accordance with the terms thereof, will be validly issued, fully paid and non-assessable, and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s amended and restated certificate of incorporation and bylaws or under the laws of the State of Delaware.
(d) This Equity Support Subscription Agreement has and the Purchase Agreement have been duly authorized, executed and delivered by the Issuer andIssuer, assuming that this Equity Support Agreement and each constitutes the a legal valid and binding agreement obligation of each Subscriberthe Issuer , this Equity Support Agreement is enforceable against the Issuer it in accordance with its terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or and (ii) principles of equity, whether considered at law or equity.
(de) The Registration Rights Agreement will constitute upon execution and delivery by the Issuer a legal valid and binding obligation of the Issuer enforceable against it in accordance with its terms except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, and (ii) principles of equity, whether considered at law or equity.
(f) The execution, delivery and performance of this Subscription Agreement, the Registration Rights Agreement and the Purchase Agreement (including compliance by the Issuer with all of the provisions hereof and thereof), the issuance and sale by of the Issuer of all the Equity Support Acquired Shares pursuant to this Equity Support Agreement, and the performance consummation of its obligations hereunder the other transactions contemplated herein and under each Pledge Agreement and Control in the Registration Rights Agreement and the transactions contemplated thereby, Purchase Agreement will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that subject, which would reasonably be expected to have a material adverse effect Material Adverse Effect (as defined in the Purchase Agreement) on the business, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), NRC or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under the terms of this Equity Support Subscription Agreement, the Registration Rights Agreement or the Purchase Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have a Material Adverse Effect (as defined in the Purchase Agreement) or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Subscription Agreement, the Registration Rights Agreement or the Purchase Agreement.
(eg) As of their respective filing dates, all reports required There are no securities or instruments issued by or to be filed by which the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As is a party as of the date hereof, there are no material outstanding hereof containing anti-dilution or unresolved comments in comment letters received similar provisions that will be triggered by the Issuer from issuance of (i) the staff of Acquired Shares or (ii) the Division of Corporation Finance of the SEC with respect Preferred Shares and Common Shares to be issued pursuant to any of Other Subscription Agreement that have not been or will not be validly waived on or prior to the SEC ReportsClosing Date.
(fh) The Issuer is not in default or violation (and no event has occurred which, with notice or the lapse of time or both, would constitute a default or violation) of any term, condition or provision of (i) the organizational documents of the Issuer, (ii) any loan or credit agreement, note, bond, mortgage, indenture, lease or other agreement, permit, franchise or license to which the Issuer is now a party or by which the Issuer’s properties or assets are bound or (iii) any statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties, except, in the case of clauses (ii) and (iii), for defaults or violations that have not had and would not be reasonably likely to have, individually or in the aggregate, a Material Adverse Effect (as defined in the Purchase Agreement).
(i) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the execution, delivery and performance by the Issuer of this Subscription Agreement (including, without limitation, the issuance of the Equity Support Shares pursuant to this Equity Support Acquired Shares), the Registration Rights Agreement or the Purchase Agreement, other than (i) filings with the SEC, including the Proxy Statement, the Registration Statement (as defined below) and any Current Reports on Form 8-K relating to the Acquisition, (ii) filings required by applicable state securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support Agreement; (iv) those required by The Nasdaq the New York Stock Market LLCExchange with respect to the NYSE American (f/k/a NYSE MKT) market (the “NYSE”), including with respect to obtaining approval Issuer stockholder approval, (iv) the filing of the Issuer’s stockholders, Certificate of Designations with the Secretary of State of the State of Delaware and (v) those the failure of which to obtain would not be reasonably be expected likely to have, individually or in the aggregate, a Material Adverse Effect.
(gj) The authorized capital stock of the Issuer consists of (i) 1,000,000 undesignated Preferred Shares and (ii) 200,000,000 Common Shares. As of the date hereof: (i) no Preferred Shares are issued and outstanding, (ii) 32,081,250 Common Shares are issued and outstanding and (iii) 19,248,750 redeemable public purchase warrants and 9,600,000 private placement warrants are outstanding. As of the Closing Date, and subject to approval by the Issuer’s stockholders, the authorized capital stock of the Issuer will consist of (i) 5,000,000 Preferred Shares, at least 1,300,000 of which will be designated as 7.00% Series A Convertible Cumulative Preferred Stock, and (ii) 200,000,000 Common Shares. As of the Closing Date, and subject to approval by the Issuer’s stockholders, there shall be no more than 1,050,000 Preferred Shares issued and outstanding and (ii) 19,248,750 redeemable public purchase warrants and no private placement warrants outstanding.
(k) The Issuer has not received any written communication since June 30, 2018 from a governmental authority entity that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not, individually or in the aggregate, be reasonably likely to have a Material Adverse Effect (as defined in the Purchase Agreement).
(l) The Common Shares are registered pursuant to Section 12(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and are listed for trading on the NYSE American under the symbol “HCAC.” There is no suit, action, proceeding or investigation pending or, to the knowledge of the Issuer, threatened against the Issuer by the NYSE or the Securities and Exchange Commission (the “SEC”) with respect to any intention by such entity to deregister the Common Shares or prohibit or terminate the listing of the Common Shares on the NYSE American. The Issuer has taken no action that is designed to terminate the registration of the Common Shares under the Exchange Act.
(m) The NYSE American will have approved the issuance of the Preferred Shares prior to the Closing Date.
(n) Assuming the accuracy of Subscriber’s representations and warranties set forth in Section 5 of this Subscription Agreement, no registration under the Securities Act is required for the offer and sale of the Acquired Shares by the Issuer to Subscriber.
(o) Neither the Issuer nor any person acting on its behalf has engaged or will engage in any form of general solicitation or general advertising (within the meaning of Regulation D of the Securities Act) in connection with any offer or sale of the Acquired Shares.
(p) As of the date hereof, the Issuer has not entered into any side letter or similar agreement with any other investor in connection with such other investor’s direct or indirect investment in the Issuer other than (w) the Purchase Agreement, (x) that certain Backstop and Subscription Agreement, dated as of June 25, 2018, by and between the Issuer and Nomura Securities International, Inc., a corporation formed under the laws of the State of New York (“Nomura”), (y) that certain Subscription Agreement, dated as of June 25, 2018, with X.X. Xxxxxx & Company, LLC and (z) the Other Subscription Agreements.
(q) The Issuer has made available to Subscriber (including via the SEC’s XXXXX system) a copy of each form, report, statement, schedule, prospectus, proxy, registration statement and other document, if any, filed by the Issuer with the SEC since its initial registration of the Common Shares (the “SEC Documents”). None of the SEC Documents filed under the Exchange Act contained, when filed or, if amended, as of the date of such amendment with respect to those disclosures that are amended, included any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. The Issuer has timely filed each report, statement, schedule, prospectus, and registration statement that the Issuer was required to file with the SEC since its inception. There are no material outstanding or unresolved comments in comment letters from the SEC Staff with respect to any of the SEC Documents.
(r) Except for such matters as have not had and would not be reasonably be expected likely to have, individually or in the aggregate, a Material Adverse EffectEffect (as defined in the Purchase Agreement), there is no (i) action, lawsuit, claim, suit, arbitration, hearing, examination or judicial or legal proceeding or investigation, whether civil, criminal or administrative, at law or in equity, or by or before any governmental authority pending, or, to the knowledge of the Issuer, threatened against the Issuer or (ii) judgment, decree, injunction, ruling or order of any governmental entity or arbitrator outstanding against the Issuer.
(hs) Assuming the accuracy of each Subscriber’s representations and warranties set forth in Section 6 of this Equity Support Agreement, no registration under the Except for placement agent fees payable to Credit Suisse Securities Act of 1933, as amended (the USA) LLC (“Securities ActCredit Suisse”), is required for Xxxxxx, Xxxxxxxx & Company, Incorporated (“Stifel,”) and Nomura (together with Credit Suisse and Stifel, in their respective capacities as placement agents with respect to the offer issuance and sale of the Equity Support Acquired Shares by pursuant to this Subscription Agreement and the Issuer to each Subscribers.
(i) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction ClosingOther Subscription Agreements, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b“Placement Agents”) of the Exchange Act. Following at the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer has not paid, and is not under obligated to pay, any obligation to pay any brokerbrokerage, finder’s or other fee or commission in connection with the its issuance and sale of the Equity Support Acquired Shares.
(l) The Issuer is not, and the Issuer after the consummation of the transaction contemplated herebyincluding, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, any fee or commission payable to any stockholder or affiliate of the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o)Issuer.
(pt) The Proxy Statement, when filed or, if amended, as of the date of such amendment with respect to those disclosures that are amended, will not include any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.
(u) As of the date hereof, each all representations and warranties of NRC and NRC Seller that are contained in the Issuer Purchase Agreement are true and correct in all material respects, to the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors knowledge of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) aboveinquiry.
Appears in 1 contract
Samples: Subscription Agreement (Hennessy Capital Acquisition Corp. III)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers that:
(a) a. The Issuer has been duly incorporated and is an exempted company duly incorporated, validly existing and as a corporation in good standing under the laws of the Cayman Islands. The Issuer has all State of Delaware, with corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As of the Closing Date, all the Equity Support b. The Acquired Shares will be have been duly authorized and, when issued and delivered to each Subscriber against full payment therefor for the Acquired Shares in accordance with the terms of this Equity Support Subscription Agreement, the Equity Support Acquired Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum and articles certificate of association incorporation (as in effect at such time amended as of issuancethe Closing Date) and bylaws or under the Companies Act, as amended, laws of the Cayman IslandsState of Delaware.
c. This Subscription Agreement, the Other Subscription Agreements and the Transaction Agreement (ccollectively, the “Transaction Documents”) This Equity Support Agreement has have been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Agreement constitutes the valid and binding agreement of each Subscriber, this Equity Support Agreement is are enforceable against the Issuer in accordance with its their respective terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or and (ii) principles of equity, whether considered at law or equity.
(d) The issuance d. Assuming the accuracy of Subscriber’s representations and sale warranties in Section 5, the execution and delivery by the Issuer of all the Equity Support Shares pursuant to this Equity Support AgreementTransaction Documents, and the performance by the Issuer of its obligations hereunder under the Transaction Documents, including the issuance and under each Pledge Agreement and Control Agreement sale of the Acquired Shares and the consummation of the other transactions contemplated therebyherein, do not and will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries Subsidiaries (as defined below) pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries Subsidiaries is bound or to which any of the property or assets of the Issuer or is subject that Subsidiaries is subject, which would reasonably be expected to have a material adverse effect on the business, properties, financial condition condition, stockholders’ equity or results of operations of the Issuer and its subsidiaries, Subsidiaries taken as a whole (a “Material Adverse Effect”), ) or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under the terms of this Equity Support Subscription Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation statute or any judgment, order, rule or regulation of any lawcourt or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or its Subsidiaries or any of their respective properties, in the case of each of the foregoing clauses (i)-(iii) that would have a Material Adverse Effect or materially affect the validity of the Acquired Shares or the legal authority of the Issuer to comply in all material respects with this Subscription Agreement. For purposes of this Subscription Agreement, “Subsidiaries” shall have the meaning ascribed to such term in the Transaction Agreement.
e. There are no securities or instruments issued by or to which the Issuer is a party containing anti-dilution or similar provisions that will be triggered by the issuance of (i) the Acquired Shares or (ii) the Common Shares to be issued pursuant to any Other Subscription Agreement, in each case, that have not been or will not be validly waived on or prior to the Closing Date.
f. The Issuer is not in default or violation (and no event has occurred which, with notice or the lapse of time or both, would constitute a default or violation) of any term, condition or provision of (i) the organizational documents of the Issuer, (ii) any loan or credit agreement, note, bond, mortgage, indenture, lease or other agreement, permit, franchise or license to which the Issuer is now a party or by which the Issuer’s properties or assets are bound, or (iii) any statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties properties, except, in the case of clauses (ii) and (iii), for defaults or violations that have not had and would not be reasonably be expected likely to have have, individually or in the aggregate, a Material Adverse Effect or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support AgreementEffect.
(e) As g. Assuming the accuracy of their respective filing datesSubscriber’s representations and warranties in Section 5, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any of the SEC Reports.
(f) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the execution, delivery and performance by the Issuer of this Subscription Agreement (including, without limitation, the issuance of the Equity Support Shares pursuant to this Equity Support AgreementAcquired Shares), other than (i) filings with the SEC, (ii) filings required by applicable state or federal securities laws, (iiiii) the filings required in accordance with Section 16 of this Equity Support Agreement; 9(m), (iv) those required by The the Nasdaq Global Market or such other applicable stock exchange on which the Issuer’s Common Shares are then listed (the “Stock Market LLCExchange”), including with respect to obtaining stockholder approval of the Issuer’s stockholdersas required by Stock Exchange listing rules, and (viv) those the failure of which to obtain would not be reasonably likely to have, individually or in the aggregate, a Material Adverse Effect or have a material adverse effect on the Issuer’s ability to consummate the transactions contemplated hereby, including the sale and issuance of the Acquired Shares.
h. As of the date hereof, (i) the authorized capital stock of ADES consists of (A) 50,000,000 shares of preferred stock and (B) 100,000,000 shares of common stock and (ii) no shares of preferred stock are issued and outstanding and 23,752,256.00 shares of common stock are issued (including 4,618,146.00 of which are held in ADES' treasury) and 19,134,110.00 are outstanding. Upon the closing of the Transaction and the Closing of those transactions contemplated by this Subscription Agreement, the authorized capital stock of the Issuer will consist of (x) 50,000,000 shares of preferred stock, par value $0.001 per share and (y) 125,000,000 Common Shares.
i. The issued and outstanding Common Shares are registered pursuant to Section 12(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and are listed for trading on the Stock Exchange. There is no suit, action, proceeding or investigation pending or, to the knowledge of the Issuer, threatened against the Issuer by the Stock Exchange or the U.S. Securities and Exchange Commission (the “Commission”) with respect to any intention by such entity to deregister the Common Shares or prohibit or terminate the listing of the Common Shares on the Stock Exchange. The Issuer has taken no action that is designed to terminate the registration of the Common Shares under the Exchange Act.
j. Assuming the accuracy of Subscriber’s representations and warranties set forth in Section 5, no registration under the Securities Act is required for the offer and sale of the Acquired Shares by the Issuer to Subscriber in the manner contemplated by this Subscription Agreement.
k. Neither the Issuer nor any person acting on its behalf has engaged or will engage in any form of general solicitation or general advertising (within the meaning of Regulation D of the Securities Act) in connection with any offer or sale of the Acquired Shares.
l. None of the forms, reports, statement, schedules, prospectuses, proxies, registration statements or other documents, if any, filed by ADES with the Commission since January 1, 2020 (the “SEC Documents”) filed under the Exchange Act (except to the extent that information contained in any SEC Document has been superseded by a later timely filed SEC Document) contained, when filed or, if amended prior to the date of this Subscription Agreement, as of the date of such amendment with respect to those disclosures that are amended, any untrue statement of a material fact or omitted to state a material fact required to be expected stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, except that have not had and would not be reasonably likely to have, individually or in the aggregate, a Material Adverse Effect.
(g) ; provided, that, with respect to the proxy statement to be filed by ADES and the Issuer with respect to the Transaction or any of its affiliates included in any SEC Document or filed as an exhibit thereto, the representation and warranty in this sentence is made to the Issuer’s knowledge. As of the date hereof, there are no material outstanding or unresolved comments in comment letters from the Issuer has Staff of the Commission with respect to any of the SEC Documents.
m. Except for such matters as have not received any written communication from a governmental authority that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation had and would not be reasonably be expected likely to have, individually or in the aggregate, a Material Adverse Effect.
(h) Assuming the accuracy of each Subscriber’s representations and warranties set forth in Section 6 of this Equity Support Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Shares by the Issuer to each Subscribers.
date hereof, there is no (i) Neither suit, action, proceeding or arbitration before a governmental authority or arbitrator pending, or, to the knowledge of the Issuer or its Subsidiaries, threatened against the Issuer or its Subsidiaries or (ii) judgment, decree, injunction, ruling or order of any governmental entity or arbitrator outstanding against the Issuer or its Subsidiaries.
n. None of ADES, the Issuer, its Subsidiaries, nor any person acting on its their behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Equity Support Shares.
(l) The Issuer is not, and the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have nothas, directly or indirectly, negotiated made any offers or entered into an Excluded Financing with sales of any other parties for the benefit security or solicited any offers to buy any security, under circumstances that would require registration of the Issuer, the SPAC, the shareholders issuance of any of the Issuer or Acquired Shares under the shareholders Securities Act, whether through integration with prior offerings pursuant to Rule 502(a) of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o)Securities Act or otherwise.
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Samples: Subscription Agreement (Advanced Emissions Solutions, Inc.)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers Subscriber that:
(a) The Issuer has been duly incorporated and is an exempted company duly incorporated, validly existing and as a corporation in good standing under the laws of the Cayman Islands. The Issuer has all State of Delaware, with corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As of the Closing Date, all the Equity Support The Acquired Shares will be have been duly authorized and, when issued and delivered to each Subscriber against full payment therefor for the Acquired Shares in accordance with the terms of this Equity Support AgreementSubscription Agreement and registered with the Transfer Agent, the Equity Support Acquired Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum certificate of incorporation (the “Certificate of Incorporation”) and articles of association bylaws (as in effect at such time of issuance“Bylaws”) or under the Companies Act, as amended, laws of the Cayman IslandsState of Delaware.
(c) This Equity Support Subscription Agreement has been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Agreement constitutes the valid and binding agreement of each Subscriber, this Equity Support Agreement is enforceable against the Issuer it in accordance with its terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or and (ii) principles of equity, whether considered at law or equity.
(d) The execution, delivery and performance of this Subscription Agreement, including the issuance and sale by of the Issuer of all the Equity Support Acquired Shares pursuant to this Equity Support Agreement, and the performance consummation of its obligations hereunder and under each Pledge Agreement and Control Agreement and the other transactions contemplated therebyhereby, will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property properties or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the its property or assets of the Issuer is subject that would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreementsubject; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that that, in the case of clauses (i) and (iii), would reasonably be expected to have a Material Adverse Effect material adverse effect on the business, properties, assets, liabilities, operations, condition (including financial condition), stockholders’ equity or results of operations of the Issuer or materially and adversely affect the validity of the Equity Support Acquired Shares or the legal authority or ability of the Issuer to comply perform in all any material respects with its obligations under this Equity Support Agreementhereunder (a “Material Adverse Effect”).
(e) As of their respective filing datesOther than rights relating to the Issuer’s Class B common stock, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission par value $0.0001 per share (the “SECClass B Shares”) since January 13), 2021 (all of which have been or will be waived with respect to the “SEC Reports”) complied in all material respects with Transactions, pursuant to the applicable requirements terms of the Exchange Act and the rules and regulations Certificate of the SEC promulgated thereunder. As of the date hereofIncorporation, there are no material outstanding securities or unresolved comments in comment letters received instruments issued by or to which the Issuer is a party containing anti-dilution or similar provisions that will be triggered by the Issuer from issuance of (i) the staff of Acquired Shares or (ii) the Division of Corporation Finance of Class A Shares to be issued in connection with the SEC with respect to any of the SEC ReportsPIPE Transactions.
(f) The Issuer is not in default or violation (and no event has occurred which, with notice or the lapse of time or both, would constitute a default or violation) of any term, condition or provision of (i) the organizational documents of the Issuer, (ii) any loan or credit agreement, note, bond, mortgage, indenture, lease or other agreement, permit, franchise or license to which, as of the date of this Subscription Agreement, the Issuer is a party or by which the Issuer’s properties or assets are bound or (iii) any statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties, except, in the case of clauses (ii) and (iii), for defaults or violations that have not had and would not be reasonably likely to have, individually or in the aggregate, a Material Adverse Effect.
(g) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the execution, delivery and performance by the Issuer of this Subscription Agreement (including, without limitation, the issuance of the Equity Support Shares pursuant to this Equity Support AgreementAcquired Shares), other than (i) filings the filing with the SECSecurities and Exchange Commission (the “Commission”) of the Registration Statement (as defined below), (ii) filings required by applicable state securities laws, (iii) the filings required in accordance filing of a Notice of Exempt Offering of Securities on Form D with Section 16 the Commission under Regulation D of this Equity Support Agreement; the Securities Act, (iv) those required by The Nasdaq Stock Market LLCNASDAQ, including with respect to obtaining approval of the Issuer’s stockholders, and (v) those the failure of which to obtain would not be reasonably be expected likely to have, individually or in the aggregate, a Material Adverse Effect.
(gh) As of the date hereofof this Subscription Agreement, the authorized capital stock of the Issuer consists of 220,000,000 shares of common stock of the Issuer, par value $0.0001 per share (“Common Stock”), including (x) 200,000,000 Class A Shares and (y) 20,000,000 Class B Shares, and 1,000,000 shares of preferred stock of the Issuer, par value $0.0001 per share (“Preferred Stock”). As of August 6, 2018: (i) 37,732,112 Class A Shares, 9,433,028 Class B Shares, and no shares of Preferred Stock were issued and outstanding; (ii) 18,941,651 warrants (the “Warrants”), each entitling the holder thereof to purchase one Class A Share at an exercise price of $11.50 per Class A Share were issued and outstanding; and (iii) no shares of Common Stock were subject to issuance upon exercise of outstanding options.
(i) The Issuer has not received any written communication from a governmental authority entity that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not, individually or in the aggregate, be reasonably likely to have a Material Adverse Effect.
(j) The issued and outstanding Class A Shares are registered pursuant to Section 12(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and are listed for trading on NASDAQ under the symbol “KAAC.” There is no suit, action, proceeding or investigation pending or, to the Issuer’s knowledge, threatened against the Issuer by NASDAQ or the Commission with respect to any intention by such entity to deregister the Class A Shares or prohibit or terminate the listing of the Class A Shares on NASDAQ. The Issuer has taken no action that is designed to terminate the registration of the Class A Shares under the Exchange Act.
(k) Assuming the accuracy of Subscriber’s representations and warranties set forth in Section 5 of this Subscription Agreement, no registration under the Securities Act is required for the offer and sale of the Acquired Shares by the Issuer to Subscriber.
(l) Neither the Issuer nor any person acting on its behalf has engaged or will engage in any form of general solicitation or general advertising (within the meaning of Regulation D of the Securities Act) in connection with any offer or sale of the Acquired Shares.
(m) The Issuer has made available to Subscriber (including via the Commission’s XXXXX system) a copy of each form, report, statement, schedule, prospectus, proxy, registration statement and other document, if any, filed by the Issuer with the Commission since its initial registration of the Class A Shares (the “SEC Documents”). As of their respective filing dates, the SEC Documents complied in all material respects with the requirements of the Exchange Act applicable to the Issuer and the rules and regulations of the Commission promulgated thereunder applicable to the SEC Documents. None of the SEC Documents filed under the Exchange Act contained, when filed or, if amended, as of the date of such amendment with respect to those disclosures that are amended, any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; provided, that the Issuer makes no such representation or warranty with respect to any information relating to the Contributed Companies or any of its affiliates included in any SEC Document or filed as an exhibit thereto. The Issuer has timely filed each report, statement, schedule, prospectus, and registration statement that the Issuer was required to file with the Commission since its inception. There are no material outstanding or unresolved comments in comment letters from the Commission Staff with respect to any of the SEC Documents.
(n) Except for such matters as have not had and would not be reasonably be expected likely to have, individually or in the aggregate, a Material Adverse Effect, there is no proceeding pending, or, to the Issuer’s knowledge, threatened against the Issuer or any judgment, decree, injunction, ruling or order of any governmental entity or arbitrator outstanding against the Issuer.
(ho) Assuming the accuracy of Except for placement fees payable to each Subscriber’s representations and warranties set forth in Section 6 of this Equity Support Agreement, no registration under the Securities Act of 1933, Financial Advisor (as amended (the “Securities Act”defined herein), is required for the offer and sale of the Equity Support Shares by the Issuer to each Subscribers.
(i) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction Closingnot paid, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under obligated to pay, any obligation to pay any brokerbrokerage, finder’s or other fee or commission in connection with the its issuance and sale of the Equity Support Acquired Shares, including, for the avoidance of doubt, any fee or commission payable to any stockholder or affiliate of the Issuer.
(lp) The Issuer is notExcept as provided in this Subscription Agreement, the Other Subscription Agreements and the Issuer after the consummation Private PIPE Subscription Agreements, none of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPACits subsidiaries or any of their affiliates, Cartesian Capital Group, LLC, the indirect controlling nor any person of the Issuer (the “Issuer Shareholder ”) and/or acting on their respective advisors (collectively, the “Project Maple Parties”) have notbehalf has, directly or indirectly, negotiated made any offers or entered into an Excluded Financing with sales of any other parties for the benefit security or solicited any offers to buy any security, under circumstances that would require registration of the Issuer, the SPAC, the shareholders issuance of any of the Issuer Acquired Shares under the Securities Act, whether through integration with prior offerings or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third partiesotherwise.
(q) The Issuer and its board of directors (ithe “Board”) is capable of evaluating independently the risks and benefits have taken all necessary action, if any, in order to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; render inapplicable any control share acquisition, interested shareholder, business combination, poison pill (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needsincluding, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, any distribution under a rights agreement) or other similar anti-takeover provision under the provisions Certificate of Sections 7Incorporation, 13 Bylaws or other organizational documents or the laws of the jurisdiction of its formation which is or could become applicable to Subscriber as a result of the Issuer’s issuance of the Acquired Shares and 15Subscriber’s ownership of the Acquired Shares. The Issuer has not adopted a shareholder rights plan or similar arrangement relating to accumulations of beneficial ownership of shares of Common Stock or a change in control of the Issuer or any of its subsidiaries.
(r) (i) Neither the Issuer nor any of its subsidiaries has taken any steps to seek protection pursuant to any law or statute relating to bankruptcy, insolvency, reorganization, receivership, liquidation or winding up, nor does the Issuer or any subsidiary have any knowledge or reason to believe that any of their respective creditors intend to initiate involuntary bankruptcy proceedings or any actual knowledge of any fact which would reasonably lead a creditor to do so. The directors Issuer and its subsidiaries, individually and on a consolidated basis, are not as of the Issuer have concluded that (A) the this Equity Support Agreement date hereof, and after giving effect to the transactions contemplated hereby are suitable for itto occur at the Closing, for will not be Insolvent (as defined below). For purposes hereof, “Insolvent” means, with respect to any person, (i) the present fair saleable value of such person’s assets is less than the amount required to pay such person’s total indebtedness, (ii) such person is unable to pay its commercial benefit debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured, (iii) such person intends to incur or believes that it will incur debts that would be beyond its ability to pay as such debts mature or (iv) such person has unreasonably small capital with which to conduct the business in its best interests, in light of its own which it is engaged as such business objectives, financial condition is now conducted and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred is proposed to in Section 5(q) abovebe conducted.
Appears in 1 contract
Samples: Subscription Agreement (Kayne Anderson Acquisition Corp)
Issuer Representations and Warranties. The Issuer represents and warrants to each the Subscribers and the Placement Agent (as defined below), as of the date of this Convertible Note Subscription Agreement and as of the Closing, that:
(a) The Issuer (i) is an exempted company duly incorporatedorganized, validly existing and in good standing under the laws of its jurisdiction of incorporation, (ii) has the Cayman Islands. The Issuer has all requisite power (corporate or otherwise) and authority to own, lease and operate its properties and conduct properties, to carry on its business as presently it is now being conducted and to enter into, deliver and perform its obligations under this Equity Support Convertible Note Subscription Agreement. As of the Closing Date, the Issuer will be and (iii) is duly incorporatedlicensed or qualified to conduct its business and, validly existing and if applicable, is in good standing under the laws of each jurisdiction (other than its jurisdiction of incorporation) in which the Cayman Islands.
(b) As of the Closing Date, all the Equity Support Shares will be duly authorized and, when issued and delivered to each Subscriber against full payment therefor in accordance with the terms of this Equity Support Agreement, the Equity Support Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum and articles of association (as in effect at such time of issuance) or under the Companies Act, as amended, of the Cayman Islands.
(c) This Equity Support Agreement has been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Agreement constitutes the valid and binding agreement of each Subscriber, this Equity Support Agreement is enforceable against the Issuer in accordance with its terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or (ii) principles of equity, whether considered at law or equity.
(d) The issuance and sale by the Issuer of all the Equity Support Shares pursuant to this Equity Support Agreement, and the performance conduct of its obligations hereunder and under each Pledge Agreement and Control Agreement and business or the transactions contemplated thereby, will not conflict with or result in a breach or violation ownership of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property its properties or assets of the Issuer requires such license or any of its subsidiaries pursuant qualification, except, with respect to the terms of foregoing clause (i) any indentureiii), mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument where the failure to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that be in good standing would not reasonably be expected to have an Issuer Material Adverse Effect. For purposes of this Convertible Note Subscription Agreement, an “Issuer Material Adverse Effect” means an event, change, development, occurrence, condition or effect which (1) would have, individually or in the aggregate, a material adverse effect on the business, financial condition condition, stockholders’ equity or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”after giving effect to the transactions hereunder and under the Transaction Agreement), or (2) materially affect affects the validity of the Equity Support Shares Convertible Notes or the Underlying Shares, or any guarantee by a Guarantor or the validity or priority and ranking of any lien on collateral securing the Convertible Notes, the legal authority of the Issuer or any Guarantor to comply in all material respects with the terms of this Convertible Notes Subscription Agreement or the Indenture, as applicable, or prevents or materially impairs the ability of the Issuer to timely perform its obligations under this Equity Support Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have a Material Adverse Effect or materially affect the validity of the Equity Support Shares Convertible Note Subscription Agreement or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Transaction Agreement.
(e) As of their respective filing dates, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any of the SEC Reports.
(f) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with including the issuance of the Equity Support Shares pursuant to this Equity Support Agreement, other than (i) filings with the SEC, (ii) filings required by applicable state securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support Agreement; (iv) those required by The Nasdaq Stock Market LLC, including with respect to obtaining approval of the Issuer’s stockholders, and (v) those the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(g) As of the date hereof, the Issuer has not received any written communication from a governmental authority that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(h) Assuming the accuracy of each Subscriber’s representations and warranties set forth in Section 6 of this Equity Support Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Shares by the Issuer to each SubscribersConvertible Notes.
(i) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Equity Support Shares.
(l) The Issuer is not, and the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Samples: Convertible Note Subscription Agreement (Starry Holdings, Inc.)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers that:
(a) a. The Issuer has been duly incorporated and is an exempted company duly incorporated, validly existing and as a corporation in good standing under the laws of the Cayman Islands. The Issuer has all State of Delaware, with corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As of the Closing Date, all the Equity Support b. The Acquired Shares will be have been duly authorized and, when issued and delivered to each Subscriber against full payment therefor for the Acquired Shares in accordance with the terms of this Equity Support AgreementSubscription Agreement and registered with the Issuer’s transfer agent, the Equity Support Acquired Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum certificate of incorporation and articles of association (as in effect at such time of issuance) bylaws or under the Companies Act, as amended, laws of the Cayman IslandsState of Delaware.
c. This Subscription Agreement, the Other Subscription Agreements and the Combination Agreement (ccollectively, the “Transaction Documents”) This Equity Support Agreement has have been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Agreement constitutes the valid and binding agreement of each Subscriber, this Equity Support Agreement is are enforceable against the Issuer in accordance with its their respective terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, fraudulent transfer, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or and (ii) principles of equity, whether considered at law or equity.
(d) d. The issuance execution and sale delivery by the Issuer of all the Equity Support Shares pursuant to this Equity Support AgreementTransaction Documents, and the performance by the Issuer of its obligations hereunder under the Transaction Documents, including the issuance and under each Pledge Agreement and Control Agreement sale of the Acquired Shares and the consummation of the other transactions contemplated therebyherein, do not and will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that subject, which would reasonably be expected to have have, individually or in the aggregate, a material adverse effect on the business, properties, financial condition condition, stockholders’ equity or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), ) or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under the terms of this Equity Support Subscription Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have have, individually or in the aggregate, a Material Adverse Effect or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Subscription Agreement.
e. There are no securities or instruments issued by or to which the Issuer is a party containing anti-dilution or similar provisions that will be triggered by the issuance of (ei) As of their respective filing dates, all reports required the Acquired Shares or (ii) the Shares to be filed by issued pursuant to any Other Subscription Agreement, in each case, that have not been or will not be validly waived on or prior to the Closing Date.
f. The Issuer is not in default or violation (and no event has occurred which, with notice or the lapse of time or both, would constitute a default or violation) of any term, condition or provision of (i) the organizational documents of the Issuer, (ii) any loan or credit agreement, note, bond, mortgage, indenture, lease or other agreement, permit, franchise or license to which the Issuer with is now a party or by which the U.S. Securities and Exchange Commission Issuer’s properties or assets are bound or (the “SEC”iii) since January 13any statute or any judgment, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements order, rule or regulation of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereofany court or governmental agency or body, there are no material outstanding domestic or unresolved comments in comment letters received by foreign, having jurisdiction over the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to or any of its properties, except, in the SEC Reportscase of clauses (ii) and (iii), for defaults or violations that have not had and would not be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect.
(f) g. The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the execution, delivery and performance by the Issuer of this Subscription Agreement (including, without limitation, the issuance of the Equity Support Shares pursuant to this Equity Support AgreementAcquired Shares), other than (i) filings the filing with the SECSecurities and Exchange Commission (the “Commission”) of the Registration Statement (as defined below), (ii) approval of the Issuer’s stockholders to increase the authorized shares of the Issuer’s common stock and the filing of an amended and restated certificate of incorporation authorizing a sufficient number of authorized shares of Issuer’s common stock to issue the Acquired Shares and Shares purchased by the Other Subscribers pursuant to the Other Subscription Agreements; (iii) filings required by applicable state or federal securities laws, (iiiiv) the filings required in accordance with Section 16 of this Equity Support Agreement; 9(n), (ivv) those required by The Nasdaq the NASDAQ Stock Market LLC(“NASDAQ”), including with respect to obtaining approval of the Issuer’s stockholdersstockholder approval, and (vvi) those the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse EffectEffect or materially affect the validity of the Acquired Shares or the legal authority of the Issuer to comply in all material respects with this Subscription Agreement.
(g) As h. The Acquired Shares are not, and following the Closing and the closing of the date hereofTransaction will not be, subject to any Transfer Restriction. The term “Transfer Restriction” means any condition to or restriction on the Issuer has not received ability of the undersigned to pledge, sell, assign or otherwise transfer the Acquired Shares under any written communication from a governmental authority that alleges that organizational document, policy or agreement of, by or with the Issuer is not Issuer, but excluding the restrictions on transfer described in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(hparagraph 4(e) Assuming the accuracy of each Subscriber’s representations and warranties set forth in Section 6 of this Equity Support Agreement, no Subscription Agreement with respect to the status of the Acquired Shares as “restricted securities” pending their registration for resale under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Shares by the Issuer to each Subscribers.
(i) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission in connection accordance with the sale of the Equity Support Shares.
(l) The Issuer is not, and the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach terms of this Section 5(o)Subscription Agreement.
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers the Subscribers, as of the date of this Agreement and as of the Closing, that:
(a) The Issuer is an exempted company duly incorporated, validly existing and in good standing under the laws of the Cayman Islands. The Issuer has all power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Agreement. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws shares of Common Stock issuable upon conversion of the Cayman Islands.
(b) As Convertible Notes issued at the Closing as of the Closing DateDate at the current Conversion Rate (as defined under the Indenture) ( (the “Underlying Shares”) have been, all and any shares of Common Stock issuable upon exercise of the Equity Support Shares Pre-Funded Warrants) (the “Warrant Shares”) will be be, duly authorized andauthorized, and when issued and delivered to each Subscriber against full payment therefor in accordance with upon exercise of the terms Pre-Funded Warrants, or upon conversion of this Equity Support Agreementthe Convertible Notes, as the Equity Support Shares case may be, such shares of Common Stock will be validly issued, fully paid and non-assessable assessable, free and clear of any liens or other restrictions (other than those arising under applicable securities laws) and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum and articles of association (as in effect at such time of issuance) or under the Companies ActGoverning Documents, as amended, of the Cayman Islands.
(c) This Equity Support Agreement has been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Agreement constitutes the valid and binding agreement of each Subscriber, this Equity Support Agreement is enforceable against the Issuer in accordance with its terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or (ii) principles of equity, whether considered at law or equity.
(d) The issuance and sale by the Issuer of all the Equity Support Shares pursuant to this Equity Support Agreement, and the performance of its obligations hereunder and under each Pledge Agreement and Control Agreement and the transactions contemplated thereby, will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument contract to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which it is bound, or under the Issuer or any laws of its subsidiaries is bound or to which any jurisdiction of the property or assets of the Issuer is subject that would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have a Material Adverse Effect or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreementincorporation.
(eb) As of their respective filing dates, all reports required to be filed by Assuming the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements accuracy of the Exchange Act representations and the rules and regulations warranties of the SEC promulgated thereunder. As Subscribers set forth in Section 4 of this Agreement, the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any of the SEC Reports.
(f) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization (including NYSE, as applicable) or other person in connection with the execution, delivery and performance of this Agreement and the Indenture, the issuance and sale of the Equity Support Shares pursuant to Convertible Notes and the compliance by the Issuer and the Guarantors with all of the provisions of this Equity Support AgreementAgreement and the Indenture and the consummation of the transactions contemplated herein and therein, other than (i) filings with the SEC, (ii) filings required by applicable state securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support Agreement; (ivii) those required by The Nasdaq Stock Market LLCthe SEC or NYSE (as applicable), including with respect to soliciting and obtaining approval stockholder approval, (iii) if applicable (including in connection with any conversion of Convertible Notes or the Issuer’s stockholdersexercise of any Warrants), requirements under the Xxxx-Xxxxx-Xxxxxx Antitrust Improvements Act of 1976, as amended, and (viv) those the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(g) As of the date hereof, the Issuer has not received any written communication from a governmental authority that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(hc) Assuming the accuracy of each Subscriber’s the Subscribers’ representations and warranties set forth in Section 6 4 of this Equity Support Agreement, (i) no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Shares Convertible Notes by the Issuer to each the Subscribers and the issuance of the Underlying Shares and/or Warrant Shares (if any) to the Subscribers, and the Convertible Notes and the Underlying Shares and/or Warrant Shares (if any) are not being offered in a manner involving a public offering under, or in a distribution in violation of, the Securities Act or any state securities laws, and (ii) it is not necessary to qualify the Indenture under the Trust Indenture Act of 1939, as amended (including the rules and regulations of the Commission promulgated thereunder).
(id) Neither the Issuer nor any person acting on its behalf has offered engaged or sold the Equity Support Shares by will engage in any form of general solicitation or general advertising in violation (within the meaning of Regulation D of the Securities Act) in connection with any offer or sale of the Convertible Notes.
(j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(ke) The Issuer is has not under entered into any obligation agreement or arrangement entitling any agent, broker, investment banker, financial advisor or other person to pay any broker’s or finder’s fee or any other commission or similar fee in connection with the transactions contemplated by this Agreement for which any Subscriber could become liable. No broker or finder is entitled to any brokerage or finder’s fee or commission solely in connection with the sale of the Equity Support SharesConvertible Notes to the Subscribers. The Issuer agrees to indemnify and hold harmless each Subscriber from any claim or demand for commission or other compensation by any broker, finder, financial consultant or similar agent claiming to have been employed by or on behalf of Issuer and to bear the cost of legal expenses incurred by each Subscriber in defending against any such claim.
(lf) The As of their respective dates, all reports, proxies and other documents required to be filed by the Issuer is notwith the SEC (such reports, the “SEC Reports”) complied in all material respects with the applicable requirements of the Securities Act and the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and the rules and regulations of the SEC promulgated thereunder, and the Issuer after the consummation none of the transaction contemplated herebySEC Reports, will not be when filed, contained any untrue statement of a material fact or omitted to state a material fact required to register as an “investment company” as such term is defined be stated therein or necessary in order to make the statements therein, in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation light of the transaction contemplated hereby will becircumstances under which they were made, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) not misleading. The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person financial statements of the Issuer (included in the “Issuer Shareholder ”) and/or their respective advisors (collectivelySEC Reports were prepared in accordance with generally accepted accounting principles in the United States, consistently applied, comply in all material respects with the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit rules and regulations of the Issuer, SEC with respect thereto as in effect at the SPAC, time of filing and fairly present in all material respects the shareholders financial position of the Issuer as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, year-end audit adjustments and the absence of certain footnotes and other presentation items as is permissible under generally accepted accounting principles. Except as disclosed in the SEC Reports, the Issuer timely filed each report, statement, schedule, prospectus, and registration statement that the Issuer was required to file with the SEC since December 31, 2018. A copy of each SEC Report is available to the Subscribers via the SEC’s XXXXX system. There are no outstanding or unresolved comments in comment letters received by the shareholders Issuer from the staff of the SPAC. For the avoidance Division of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As Corporation Finance of the date hereof, each SEC with respect to any of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third partiesSEC Reports.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Samples: Convertible Note Subscription Agreement (Independence Contract Drilling, Inc.)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers that:
(a) a. The Issuer has been duly incorporated and is an exempted company duly incorporated, validly existing and as a corporation in good standing under the laws of the Cayman Islands. The Issuer has all State of Delaware, with corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As of the Closing Date, all the Equity Support b. The Acquired Shares will be have been duly authorized and, when issued and delivered to each Subscriber against full payment therefor for the Acquired Shares in accordance with the terms of this Equity Support AgreementSubscription Agreement and registered with the Transfer Agent, the Equity Support Acquired Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum certificate of incorporation and articles of association (as in effect at such time of issuance) bylaws or under the Companies Act, as amended, laws of the Cayman IslandsState of Delaware.
(c) This Equity Support Agreement has c. The Transaction Documents have been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Agreement constitutes the Transaction Documents constitute the valid and binding agreement of each Subscriberthe other parties thereto, this Equity Support Agreement is are valid and binding obligations of the Issuer, and are enforceable against the Issuer it in accordance with its their terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other similar laws relating to affecting creditors’ rights generally or affecting by principles governing the rights availability of creditors generallyequitable remedies, or and (ii) principles of equity, whether considered at law or equity.
(d) d. The execution, delivery and performance of this Subscription Agreement and the other Transaction Documents, including the issuance and sale by of the Issuer of all the Equity Support Acquired Shares pursuant to this Equity Support Agreement, and the performance consummation of its obligations hereunder and under each Pledge Agreement and Control Agreement and the other transactions contemplated hereby and thereby, will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreementsubject; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency agency, taxing authority or regulatory body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that that, in the case of clauses (i) and (iii), would reasonably be expected to have a Material Adverse Effect material adverse effect on the business, condition (including financial condition), or results of operations of the Issuer or materially and adversely affect the validity of the Equity Support Acquired Shares or the legal authority or ability of the Issuer to comply perform in all any material respects with its obligations under this Equity Support Agreementhereunder (an “Issuer Material Adverse Effect”).
e. The Issuer is not in default or violation (eand no event has occurred which, with notice or the lapse of time or both, would constitute a default or violation) As of their respective filing datesany term, all reports required to be filed by condition or provision of (i) the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements organizational documents of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As Issuer, (ii) any loan or credit agreement, guarantee, note, bond, mortgage, indenture, lease or other agreement, permit, franchise or license to which, as of the date hereofof this Subscription Agreement, there are no material outstanding or unresolved comments in comment letters received by the Issuer from is a party or by which the staff Issuer’s properties or assets are bound or (iii) any statute or any judgment, order, rule or regulation of any court or governmental agency, taxing authority or regulatory body, domestic or foreign, having jurisdiction over the Division of Corporation Finance of the SEC with respect to Issuer or any of its properties, except, in the SEC Reportscase of clauses (ii) and (iii), for defaults or violations that have not had and would not be reasonably likely to have, individually or in the aggregate, an Issuer Material Adverse Effect.
(f) f. The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the execution, delivery and performance by the Issuer of this Subscription Agreement (including the issuance of the Equity Support Shares pursuant to this Equity Support AgreementAcquired Shares), other than (i) filings the filing with the SECCommission of the Registration Statement (as defined below), (ii) filings required by applicable state securities laws, (iii) those that will be obtained on or prior to the filings required in accordance with Section 16 of this Equity Support Agreement; Closing and (iv) those required by The Nasdaq Stock Market LLCany filing, including with respect to obtaining approval of the Issuer’s stockholders, and (v) those the failure of which to obtain would not be reasonably be expected likely to have, individually or in the aggregate, a an Issuer Material Adverse Effect.
(g) g. As of the date of this Subscription Agreement, the authorized capital stock of the Issuer is 1,000 shares of Common Stock, par value $0.01 per share, none of which are issued and outstanding. Except as set forth above and pursuant to the Other Subscription Agreements and the Reorganization Agreement, there are no outstanding options, warrants or other rights to subscribe for, purchase or acquire from the Issuer any shares of Common Stock or other equity interests in the Issuer, or securities convertible into or exchangeable or exercisable for such equity interests. As of the date hereof, other than First Merger Sub and Second Merger Sub, the Issuer has no subsidiaries and does not own, directly or indirectly, interests or investments (whether equity or debt) in any person, whether incorporated or unincorporated. There are no shareholder agreements, voting trusts or other agreements or understandings to which the Issuer is a party or by which it is bound relating to the voting of any securities of the Issuer, other than as contemplated by the Reorganization Agreement.
h. The Issuer is in compliance with all applicable laws, except where such non-compliance with not, individually or in the aggregate, be reasonably expected to have an Issuer Material Adverse Effect. The Issuer has not received any written communication from a governmental authority entity that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not, individually or in the aggregate, be reasonably likely to have an Issuer Material Adverse Effect.
i. Assuming the accuracy of Subscriber’s representations and warranties set forth in Section 5 of this Subscription Agreement, no registration under the Securities Act is required for the offer and sale of the Acquired Shares by the Issuer to Subscriber in the manner contemplated by this Subscription Agreement.
j. Neither the Issuer, nor any person acting on its behalf has, directly or indirectly, made any offers or sales of any Issuer security or solicited any offers to buy any security under circumstances that would adversely affect reliance by the Issuer on Section 4(a)(2) of the Securities Act for the exemption from registration for the transactions contemplated hereby or would require registration of the issuance of the Acquired Shares.
k. Except for any Alternative Settlement Procedures, the Issuer has not entered into any Other Subscription Agreement (or side letter or similar agreement in respect thereof) on terms (economic or otherwise) that are materially more favorable to such subscriber or investor than as set forth in this Subscription Agreement; provided, however, that Subscriber acknowledges that the subscription agreement entered into with Xxxxx & Company, LLC or its affiliate provides that Xxxxx & Company, LLC or its affiliate may increase the number of Acquired Shares to be purchased under such agreement at any time prior to Closing.
l. Except for such matters as have not had and would not be reasonably be expected likely to have, individually or in the aggregate, a an Issuer Material Adverse Effect, there is no (i) investigation, action, suit, claim or other proceeding, in each case by or before any governmental authority pending, or, to the knowledge of the Issuer, threatened against the Issuer or (ii) judgment, decree, injunction, ruling or order of any governmental entity outstanding against the Issuer.
(h) Assuming m. Except as provided in this Subscription Agreement and the accuracy Other Subscription Agreements, none of each Subscriber’s representations and warranties set forth in Section 6 the Issuer, its subsidiaries or any of this Equity Support Agreementtheir affiliates, no nor any person acting on their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would require registration of the issuance of any of the Acquired Shares under the Securities Act of 1933Act, as amended (the “Securities Act”), is required for the offer and sale whether through integration with prior offerings pursuant to Rule 502(a) of the Equity Support Shares Securities Act or otherwise.
n. Neither the Issuer nor any of its subsidiaries has taken any steps to seek protection pursuant to any law or statute relating to bankruptcy, insolvency, reorganization, receivership, liquidation, administration or winding up or failed to pay its debts when due, nor does the Issuer or any subsidiary have any knowledge or reason to believe that any of their respective creditors intend to initiate involuntary bankruptcy proceedings or seek to commence an administration.
o. Each of the Issuer and any of its directors and officers is not (i) a person or entity named on the List of Specially Designated Nationals and Blocked Persons, the Executive Order 13599 List, the Foreign Sanctions Evaders List, or the Sectoral Sanctions Identification List, each of which is administered by OFAC, (ii) owned or controlled by, or acting on behalf of, a person, that is named on an OFAC List; (iii) organized, incorporated, established, located, resident or born in, or a citizen, national, or the government, including any political subdivision, agency, or instrumentality thereof, of, Cuba, Iran, North Korea, Syria, the Crimea region of Ukraine, or any other country or territory embargoed or subject to substantial trade restrictions by the Issuer to each SubscribersUnited States or (iv) a Designated National as defined in the Cuban Assets Control Regulations, 31 C.F.R. Part 515.
(i) Each of the Issuer and any of its directors and officers has not engaged in any activity or conduct which would violate any applicable anti-bribery, anti-corruption or anti-money laundering laws, regulations or rules in any applicable jurisdiction (including the U.S. Foreign Corrupt Practices Act of 1977, as amended), (ii) the Issuer maintains systems, policies and procedures designed to prevent violation of such laws, regulations and rules and (iii) no action, suit or proceeding by or before any court or governmental or regulatory agency, authority or body or any arbitrator having jurisdiction over the Issuer, with respect to such laws, regulations and rules is pending and, to the Issuer’s knowledge, no such actions, suits or proceedings are threatened or contemplated.
q. Except for placement fees payable to the Placement Agents (as defined herein), the Issuer has not paid, and is not obligated to pay, any brokerage, finder’s or other fee or commission in connection with its issuance and sale of the Acquired Shares, including, for the avoidance of doubt, any fee or commission payable to any stockholder or affiliate of the Issuer.
r. There are no securities or instruments issued by or to which Issuer is a party containing antidilution or similar provisions that will be triggered by the issuance of (i) the Acquired Shares or (ii) the shares to be issued pursuant to any Other Subscription Agreement, that have not been or will not be validly waived on or prior to the Closing Date.
s. Neither the Issuer Issuer, nor any person acting on its behalf has offered engaged or sold the Equity Support Shares by will engage in any form of general solicitation or general advertising in violation (within the meaning of Regulation D of the Securities Act.
(j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the any offer or sale of the Equity Support Acquired Shares.
(l) The Issuer is not, and the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Samples: Subscription Agreement (FTAC Olympus Acquisition Corp.)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers that:
(a) The Issuer is an exempted company duly incorporated, validly existing and in good standing under the laws of the Cayman Islands. The Issuer has all power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, following the Domestication, the Issuer will be duly incorporatedformed, validly existing as a corporation and in good standing under the laws of the Cayman IslandsState of Delaware.
(b) As of the Closing Date, all the Equity Support Acquired Shares will be duly authorized and, when issued and delivered to each Subscriber against full payment therefor for the Acquired Shares will be free and clear of any liens (other than those specified hereunder or those created by Subscriber) in accordance with the terms of this Equity Support Subscription Agreement, the Equity Support Acquired Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights rights, whether created under the Issuer’s memorandum and articles certificate of association incorporation (as in effect at such time amended as of issuancethe Closing Date) and bylaws (as amended as of the Closing Date), or under the Companies Act, as amended, laws of the Cayman IslandsState of Delaware.
(c) This Equity Support Subscription Agreement has been duly authorized, executed and delivered by the Issuer andIssuer, assuming that this Equity Support Agreement constitutes the valid and binding agreement of each Subscriber, this Equity Support Agreement the Issuer and is enforceable against the Issuer in accordance with its terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or and (ii) principles of equity, whether considered at law or equity.
(d) The issuance Assuming the accuracy of Subscriber’s representations and sale warranties in Section 4, the execution and delivery by the Issuer of all the Equity Support Shares pursuant to this Equity Support Subscription Agreement, and the performance by the Issuer of its obligations hereunder under this Subscription Agreement, including the issuance and under each Pledge Agreement sale of the Acquired Shares and Control Agreement and the consummation of the transactions contemplated therebyherein, do not and will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that would reasonably be expected to subject, which would, individually or in the aggregate, have a material adverse effect on the business, properties, financial condition condition, stockholders’ equity or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), ) or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under the terms of this Equity Support Subscription Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have a Material Adverse Effect or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Subscription Agreement.
(e) As The Issuer is not in default or violation (and no event has occurred which, with notice or the lapse of their respective filing datestime or both, all reports required would constitute a default or violation) of any term, condition or provision of (i) the organizational documents of the Issuer, (ii) any loan or credit agreement, note, bond, mortgage, indenture, lease or other agreement, permit, franchise or license to be filed by which the Issuer with is now a party or by which the U.S. Securities and Exchange Commission Issuer’s properties or assets are bound, or (the “SEC”iii) since January 13any statute or any judgment, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements order, rule or regulation of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereofany court or governmental agency or body, there are no material outstanding domestic or unresolved comments in comment letters received by foreign, having jurisdiction over the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to or any of its properties, except, in the SEC Reportscase of clauses (ii) and (iii), for defaults or violations that have not had and would not be reasonably likely to have, individually or in the aggregate, a Material Adverse Effect.
(f) The Assuming the accuracy of Subscriber’s representations and warranties in Section 4, the Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the execution, delivery and performance by the Issuer of this Subscription Agreement (including, without limitation, the issuance of the Equity Support Shares pursuant to this Equity Support AgreementAcquired Shares), other than (i) filings the filing with the SECSecurities and Exchange Commission (the “Commission”) of the Registration Statement (as defined below), (ii) filings required by applicable state or federal securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support Agreement; 9(m), (iv) those any filings required under the Hxxx-Xxxxx-Xxxxxx Antitrust Improvements Act of 1976 or similar antitrust laws, (v) the filings required by The Nasdaq the NYSE or such other applicable stock exchange on which the Issuer’s Class A Shares are then listed (the “Stock Market LLCExchange”), including with respect to obtaining approval of the Issuer’s stockholdersstockholder approval, and (vvi) those any filing, the failure of which to obtain would not be reasonably likely to have, individually or in the aggregate, a Material Adverse Effect or have a material adverse effect on the Issuer’s ability to consummate the transactions contemplated hereby, including the sale and issuance of the Acquired Shares.
(g) The authorized share capital of the Issuer consists of (i) 500,000,000 Class A Shares, (ii) 50,000,000 Class B ordinary shares of par value $0.0001 each (“Class B Shares”), and (iii) 5,000,000 preference shares of par value $0.0001 each (“Preferred Stock”). As of the date hereof, excluding any units of the Issuer that may be expected acquired by affiliates of Issuer pursuant to the A&R FPA (as defined in the Transaction Agreement): (A) no shares of Preferred Stock are issued and outstanding, (B) 41,400,000 Class A Shares are issued and outstanding, and (C) 10,350,000 Class B Shares are issued and outstanding. As of the date hereof, excluding any units of the Issuer that may be acquired by affiliates of Issuer pursuant to the A&R FPA (as defined in the Transaction Agreement): (x) 13,800,000 warrants to purchase Class A Shares that were included in the units sold as part of the Issuer’s initial public offering (the “Public Warrants”) and (y) 7,386,667 warrants to purchase Class A Shares that were issued to an affiliate of the Issuer (the “Private Warrants” and, together with the Public Warrants, the “Warrants”) are issued and outstanding. All issued and outstanding Class A Shares and Class B Shares have been duly authorized and validly issued, are fully paid and are non-assessable and are not subject to preemptive rights and all outstanding Warrants have been duly authorized and validly issued, are fully paid and are not subject to preemptive rights. Except as set forth above and pursuant to the Other Subscription Agreements and the Transaction Agreement, there are no outstanding options, warrants or other rights to subscribe for, purchase or acquire from the Issuer any Class A Shares, Class B Shares, or other equity interests in the Issuer, or securities convertible into or exchangeable or exercisable for such equity interests. As of the date hereof, the Issuer has no subsidiaries (other than Merger Sub) and does not own, directly or indirectly, interests or investments (whether equity or debt) in any person, whether incorporated or unincorporated.
(h) The issued and outstanding Class A Shares are registered pursuant to Section 12(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and are listed for trading on the Stock Exchange. There is no suit, action, proceeding or investigation pending or, to the knowledge of the Issuer, threatened against the Issuer by the Stock Exchange or the Commission with respect to any intention by such entity to deregister the Class A Shares or prohibit or terminate the listing of the Class A Shares on the Stock Exchange. The Issuer has taken no action that is designed to terminate the registration of the Class A Shares under the Exchange Act. As of the Closing Date, the Acquired Shares will be approved for listing on the Stock Exchange, subject to official notice of issuance.
(i) Assuming the accuracy of Subscriber’s representations and warranties set forth in Section 4, no registration under the Securities Act is required for the offer and sale of the Acquired Shares by the Issuer to Subscriber in the manner contemplated by this Subscription Agreement.
(j) Neither the Issuer nor any person acting on its behalf has engaged or will engage in any form of general solicitation or general advertising (within the meaning of Regulation D of the Securities Act) in connection with any offer or sale of the Acquired Shares.
(k) The Issuer has not entered into any subscription agreement, side letter or similar agreement with any Other Subscriber or any other investor in connection with such Other Subscriber’s or such other investor’s direct or indirect investment in the Issuer other than (i) the Transaction Agreement and any other agreement expressly contemplated by the Transaction Agreement, (ii) the A&R FPA (as defined in the Transaction Agreement) and (iii) the Other Subscription Agreements. The Other Subscription Agreements have not been amended in any material respect following the date of this Subscription Agreement and reflect the same Share Purchase Price and terms that are no more advantageous to any such Other Subscriber thereunder than the terms of this Subscription Agreement.
(l) Other than as set forth in the Transaction Agreement or as described in the SEC Reports (as defined below), there are no securities or instruments issued by or to which the Issuer is a party containing anti-dilution or similar provisions that will be triggered by the issuance of (i) the Acquired Shares or (ii) the shares to be issued pursuant to any Other Subscription Agreement that have not been or will not be validly waived on or prior to the closing of the Transactions; provided, that any such holders will waive any such anti-dilution or similar provisions in connection with the Transactions.
(m) As of their respective dates, all reports (the “SEC Reports”) required to be filed by the Issuer with the Commission complied in all material respects with the applicable requirements of the Securities Act and/or the Exchange Act and the rules and regulations of the Commission promulgated thereunder, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided that in light of the Commission’s issuance of the Statement on Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies on April 12, 2021 (the “Statement”), the Issuer determined it had improperly accounted for its outstanding warrants as equity instruments and restated its previously filed financial statements to reflect the classification of its outstanding warrants as liabilities for accounting purposes (the “Warrant Accounting Issue”). The financial statements of the Issuer included in the SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing and fairly present in all material respects the financial position of the Issuer as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, year-end audit adjustments, other than with respect to the Warrant Accounting Issue. Subscriber acknowledges that (i) the Issuer continues to review the Statement and its implications, including on the other information included in its SEC Reports and (ii) any revision or other modification of the SEC Reports (including, without limitation, with respect to disclosures regarding internal control over financial reporting or disclosure controls and procedures) in connection with such a review of the Statement or any subsequent related agreements or other guidance from the Staff of the Commission with respect to the Statement shall be deemed not material for purposes of this Agreement. A copy of each SEC Report is available to the Subscriber via the Commission’s EXXXX system. There are no and upon Closing there shall be no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the Commission with respect to any of the SEC Reports.
(n) Except for such matters as have not had and would not be reasonably likely to have, individually or in the aggregate, a Material Adverse Effect.
(g) As , as of the date hereof, there is no (i) suit, action, proceeding or arbitration before a governmental authority or arbitrator pending, or, to the knowledge of the Issuer, threatened against the Issuer or (ii) judgment, decree, injunction, ruling or order of any governmental entity or arbitrator outstanding against the Issuer.
(o) Except for placement fees payable to UBS Securities LLC (“UBS”) and J.X. Xxxxxx Securities LLC in their capacities as placement agents for the offer and sale of the Acquired Shares (in such capacity, collectively, “Placement Agents”), the Issuer has not paid, and is not obligated to pay, any brokerage, finder’s or other commission or similar fee in connection with its issuance and sale of the Acquired Shares, including, for the avoidance of doubt, any fee or commission payable to any stockholder or affiliate of the Issuer.
(p) None of the Issuer, its subsidiaries or any of their affiliates, nor any person acting on their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would require registration of the issuance of any of the Acquired Shares under the Securities Act, whether through integration with prior offerings pursuant to Rule 502(a) of the Securities Act or otherwise.
(q) The Issuer is in compliance with all applicable laws, except where such non-compliance would not reasonably be expected to have a Material Adverse Effect. The Issuer has not received any written communication from a governmental authority that alleges entity alleging that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to havenot, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
(h) Assuming the accuracy of each Subscriber’s representations and warranties set forth in Section 6 of this Equity Support Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Shares by the Issuer to each Subscribers.
(i) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Equity Support Shares.
(lr) The Issuer is not, and immediately after receipt of payment for the Issuer after the consummation of the transaction contemplated herebyAcquired Shares, will not be required to register as an “investment company” as such term is defined in within the meaning of the Investment Company Act of 1940, as amended.
(ms) The Issuer is, and shall use commercially reasonable efforts to not engage in any activities that would cause the Issuer after to become a U.S. real property holding corporation (“USRPHC”) and shall notify Subscriber in writing as promptly as possible if it determines that there is a significant risk that it may become a USRPHC. In addition, upon the consummation of the transaction contemplated hereby will beSubscriber’s reasonable request, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor shall use commercially reasonable efforts to determine whether it is a USRHPC and shall promptly inform the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined Subscriber in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing writing once such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement determination has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) abovemade.
Appears in 1 contract
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers that:
(a) The Issuer is an exempted company duly incorporated, a corporation registered and validly existing and in good standing under the laws of the Cayman Islands. The Issuer has all Xxxxxxxxxx Xxxxxxxxxxxx Xxx 0000 (Cth) (“Corporations Act”), with corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As The Subscriber will acquire at the Subscription Closing (i) the full legal and beneficial ownership of the Closing DateAcquired Shares free and clear of all encumbrances, all subject to the Equity Support registration of the Subscriber in the register of shareholders; (ii) the Acquired Shares will be that have been duly authorized andand validly issued by the Issuer; (iii) the Acquired Shares free of competing rights, when issued including pre-emptive rights or rights of first refusal; and delivered to each Subscriber against (iv) the Acquired Shares that are fully paid and have no money owing in respect of them (assuming full payment therefor in accordance with the terms of this Equity Support Subscription Agreement, the Equity Support Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum and articles of association (as in effect at such time of issuance) or under the Companies Act, as amended, of the Cayman Islands).
(c) This Equity Support Subscription Agreement has and the Other Subscription Agreements, if any, entered into on or prior to the date hereof, (the “Transaction Documents”) have been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Agreement constitutes Issuer. The Transaction Documents constitute the valid and legally binding agreement obligation of each Subscriberthe Issuer, this Equity Support Agreement is enforceable against the Issuer in accordance with its their terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or and (ii) principles of equity, whether considered at law or equity.
(d) The issuance [RESERVED]
(e) Assuming the accuracy of Subscriber’s representations and sale warranties set forth in Section 5 of this Subscription Agreement, the execution and delivery by the Issuer of all the Equity Support Shares pursuant to this Equity Support AgreementTransaction Documents, and the performance by the Issuer of its obligations hereunder under the Transaction Documents, including the issuance and under each Pledge Agreement and Control Agreement sale of the Acquired Shares and the consummation of the other transactions contemplated thereby, herein and therein do not and will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that subject, which would reasonably be expected to have have, individually or in the aggregate, a material adverse effect on the business, properties, financial condition condition, shareholders’ equity or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), ) or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under the terms of this Equity Support Subscription Agreement; (ii) result in any violation the constitution of the provisions of Issuer as amended or varied from time to time (the “Constitution”) or other organizational documents (as applicable) of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have have, individually or in the aggregate, a Material Adverse Effect or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Subscription Agreement.
(e) As of their respective filing dates, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any of the SEC Reports.
(f) The Other than the warrants to purchase Ordinary Shares issued in connection with the Business Combination, there are no securities or instruments issued by or to which the Issuer is a party containing anti-dilution or similar provisions that will be triggered by the issuance of (i) the Acquired Shares or (ii) the Ordinary Shares to be issued pursuant to any Other Subscription Agreement, in each case, that have not been or will not be validly waived on or prior to the Closing Date.
(g) Assuming the accuracy of Subscriber’s representations and warranties set forth in Section 5 of this Subscription Agreement, the Issuer is not in default or violation (and no event has occurred which, with notice or the lapse of time or both, would constitute a default or violation) of any term, condition or provision of (i) the organizational documents of the Issuer, (ii) any loan or credit agreement, guarantee, note, bond, mortgage, indenture, lease or other agreement, permit, franchise or license to which the Issuer is now a party or by which the Issuer’s properties or assets are bound or (iii) any statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties, except, in the case of clauses (ii) and (iii), for defaults or violations that have not had and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(h) Assuming the accuracy of Subscriber’s representations and warranties set forth in Section 5 of this Subscription Agreement, the Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the execution, delivery and performance by the Issuer of this Subscription Agreement (including, without limitation, the issuance of the Equity Support Shares pursuant to this Equity Support AgreementAcquired Shares), other than (i) filings the filing with the SECCommission of the Registration Statement (as defined below), (ii) filings required by applicable U.S. state or federal or Australian securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support Agreement; by the Exchange, and (iv) those required by The Nasdaq Stock Market LLCconsents or filings, including with respect to obtaining approval of the Issuer’s stockholders, and (v) those the failure of which to obtain or file would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse EffectEffect or have a material adverse effect on the Issuer’s ability to consummate the transactions contemplated hereby, including the sale and issuance of the Acquired Shares.
(gi) As of the date hereof and as of immediately prior to the Closing Date, the share capital of the Issuer and the outstanding indebtedness of the Issuer are as described in in the SEC Documents (as defined below) or as otherwise disclosed by the Issuer to Subscriber in writing. All issued Ordinary Shares have been duly authorized and validly issued, are fully paid and are non-assessable and are not subject to preemptive rights. Except as set forth above and pursuant to the option agreements entered into by certain existing shareholders of Tritium and certain affiliates of DCRN’s sponsor in contemplation of the Post-Closing Funding (the “Option Agreements”) or as described in the SEC Documents, there are no outstanding options, warrants or other rights to subscribe for, purchase or acquire from the Issuer any Ordinary Shares or other equity interests in the Issuer, or securities convertible into or exchangeable or exercisable for such equity interests. As of the date hereof, the Issuer has no subsidiaries (other than Merger Sub, DCRN and Tritium) and does not own, directly or indirectly, interests or investments (whether equity or debt) in any person, whether incorporated or unincorporated. There are no shareholder agreements, voting trusts or other agreements or understandings to which the Issuer is a party or by which it is bound relating to the voting of any securities of the Issuer, other than as set forth in the SEC Documents. Notwithstanding the foregoing, after the date of this Subscription Agreement and before the Subscription Closing, certain other investors may enter into subscription agreements with DCRN and the Issuer substantially similar to this Subscription Agreement, pursuant to which such investors (the “Future Subscribers”) would agree to subscribe for and purchase, and the Issuer would agree to issue and sell to such Future Subscribers, on the Closing Date, Ordinary Shares at the Share Purchase Price.
(j) The Issuer has not received any written communication from a governmental authority that alleges entity alleging that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
(k) Assuming the accuracy of Subscriber’s representations and warranties set forth in Section 5 of this Subscription Agreement, no registration under the Securities Act is required for the offer and sale of the Acquired Shares by the Issuer to Subscriber in the manner contemplated by this Subscription Agreement.
(l) Neither the Issuer nor any person acting on its behalf has engaged or will engage in any form of general solicitation or general advertising (within the meaning of Regulation D of the Securities Act) in connection with any offer or sale of the Acquired Shares.
(m) The Issuer has not entered into any side letter or similar agreement with any other subscriber pursuant to Other Subscription Agreements or any other investor in connection with such investor’s direct or indirect investment in the Issuer other than (i) the Business Combination Agreement, (ii) the Other Subscription Agreements, (iii) agreements or forms thereof that have been publicly filed by the Issuer via the Commission’s XXXXX system, and (iv) contracts with respect to the sale, supply, marketing or distribution of goods or services by operating companies. No Other Subscription Agreement (other than any Other Subscription Agreements entered into by investment companies registered under the Investment Company Act or investors advised by an investment adviser subject to regulation under the Investment Advisers Act solely to the extent contemplated by Section 2(a) hereof) nor any agreements relating to the Post-Closing Funding or Option Agreements contain terms (economic or otherwise) more favorable to any such other subscribers than as set forth in this Subscription Agreement (provided that, (i) Subscriber agrees and acknowledges that the terms set forth in the form of Option Agreement publicly filed by the Issuer on Form 6-K with the SEC on January 14, 2022 are not more favorable to the subscribers thereto than as set forth in this Subscription Agreement and (ii) excluding any strategic or service arrangement unrelated to the issuance of equity securities of the Issuer or other financing-related matters that may be entered into with a party that participates in the Post-Closing Funding). The Other Subscription Agreements, any agreements relating to the Post-Closing Funding, and Option Agreements have not been amended or waived in any material respect and reflect the same Share Purchase Price as set forth herein. If the Issuer issues Ordinary Shares or other securities that are convertible or otherwise exchangeable for Ordinary Shares, in each case, which are not included in the Post-Closing Funding, and the effective price per Ordinary Share for such securities is less than the Share Purchase Price, then the Share Purchase Price shall be reduced to such lower price.
(n) There is no (i) suit, action, proceeding, or arbitration pending, or, to the Issuer’s knowledge, threatened against the Issuer or (ii) judgment, decree, injunction, ruling or order of any governmental entity or arbitrator outstanding against the Issuer, except for such matters as have not had and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(ho) Assuming The Issuer has not paid, and is not obligated to pay, any brokerage, finder’s or other commission or similar fee in connection with its issuance and sale of the accuracy of each Subscriber’s representations Acquired Shares, except for placement fees payable at the Subscription Closing to Credit Suisse Securities (USA) LLC (“Credit Suisse”) Citigroup Global Markets Inc. (“Citi”) and warranties set forth X.X. Xxxxxx Securities LLC (“X.X. Xxxxxx”) in Section 6 of this Equity Support Agreement, no registration under the Securities Act of 1933, their capacity as amended (the “Securities Act”), is required placement agents for the offer and sale of the Equity Support Acquired Shares by (in such capacity, the Issuer to “Placement Agents,” and each Subscribersa “Placement Agent”).
(ip) Neither None of the Issuer Issuer, its subsidiaries or any of their affiliates, nor any person acting on its their behalf has offered has, directly or sold indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would require registration of the Equity Support issuance of any of the Acquired Shares by any form of general solicitation or general advertising in violation under the Securities Act, whether through integration with prior offerings pursuant to Rule 502(a) of the Securities ActAct or otherwise.
(j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(kq) The Issuer is and its affiliates will not under any obligation to pay any broker’s fee directly or commission in connection with indirectly use the proceeds of the sale of the Equity Support Acquired Shares, or lend, contribute or otherwise make available such proceeds to a subsidiary, joint venture partner or other person or entity (i) to fund a person or entity named on an OFAC List (as defined below), (ii) that is owned or controlled by, or acting on behalf of, a person, that is named on an OFAC List, (iii) that is organized, incorporated, established, located, resident or born in, or a citizen, national, or the government, including any political subdivision, agency, or instrumentality thereof, of, Cuba, Iran, North Korea, Syria, the Crimea region of Ukraine, or any other country or territory embargoed or subject to substantial trade restrictions by the United States, (iv) that is a Designated National as defined in the Cuban Assets Control Regulations, 31 C.F.R. Part 515 or (v) that is a non-U.S. shell bank or providing banking services indirectly to a non-U.S. shell bank.
(lr) The Issuer is not, and immediately after receipt of payment by the Issuer after for the consummation of the transaction contemplated hereby, Acquired Shares will not be required to register as be, an “investment company” as such term is defined in within the meaning of the Investment Company Act of 1940, as amended.
(ms) The Issuer ishas made available to Subscriber (including via the Commission’s XXXXX system) a copy of each form, report, statement, schedule, prospectus, proxy, registration statement and other document, if any, filed by the Issuer with the Commission since the first date on which any class of securities of the Issuer was registered with the Commission, if any (the “SEC Documents”), which SEC Documents, as of their respective filing dates, complied in all material respects with the applicable requirements of the Exchange Act, Securities Act, and the Issuer after the consummation applicable rules and regulations of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) Commission promulgated thereunder. None of the Commodity SEC Documents filed under the Exchange ActAct (except to the extent that information contained in any SEC Document has been superseded by a later timely filed SEC Document) contained, as amendedwhen filed, other than any untrue statement of a person material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein not misleading, in the case of any SEC Document that is an eligible contract participant under Section 1a(18)(C) a registration statement, or included, when filed, any untrue statement of a material fact or omitted to state a material fact necessary to make the statements therein, in the light of the Commodity Exchange Act).
(n) Neither circumstances under which they were made, not misleading, in the case of all other SEC Documents. The Issuer has timely filed each report, statement, schedule, prospectus, and registration statement that the Issuer nor was required to file with the Issuer after Commission since its inception. There are no material outstanding or unresolved comments in comment letters from the consummation Staff of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and Commission with respect to any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debtsSEC Documents.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers the Investor that:
(a) The Issuer is an exempted company duly incorporated, validly existing and in good standing under the laws of the Cayman IslandsIslands (to the extent such concept exists in such jurisdiction). The Issuer has all power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the each Closing Date, following the Domestication, Issuer will be duly incorporated, validly existing as a corporation and in good standing under the laws of the Cayman IslandsState of Delaware.
(b) As of the each Closing Date, all the Equity Support Shares will be duly authorized and, when issued and delivered to each Subscriber the Investor against full payment therefor in accordance with the terms of this Equity Support Subscription Agreement, the Equity Support Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum and articles certificate of association incorporation (as in effect at such time of issuance) or under the Companies Act, as amended, of the Cayman IslandsDelaware General Corporation Law.
(c) This Equity Support Subscription Agreement has been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Subscription Agreement constitutes the valid and binding agreement of each Subscriberthe Investor, this Equity Support Subscription Agreement is enforceable against the Issuer in accordance with its terms, except as may be limited or otherwise affected by by
(i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or (ii) principles of equity, whether considered at law or equity.
(d) The issuance and sale by the Issuer of all the Equity Support Shares pursuant to this Equity Support Agreement, and the performance of its obligations hereunder and under each Pledge Subscription Agreement and Control Agreement and the transactions contemplated thereby, will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Subscription Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have a Material Adverse Effect or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Subscription Agreement..
(e) As of their respective filing dates, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) SEC since January 13July 24, 2021 2020 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any of the SEC Reports.
(f) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the issuance of the Equity Support Shares pursuant to this Equity Support Subscription Agreement, other than (i) filings with the SEC, (ii) filings required by applicable state securities laws, (iii) the filings required in accordance with Section 16 13 of this Equity Support Subscription Agreement; , (iv) those required by The Nasdaq Stock Market LLC, including with respect to obtaining approval of the Issuer’s stockholders, and (v) those the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(g) As of the date hereof, the Issuer has not received any written communication from a governmental authority that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(h) Assuming the accuracy of each Subscriberthe Investor’s representations and warranties set forth in Section 6 of this Equity Support Subscription Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Shares by the Issuer to each Subscribersthe Investor.
(i) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following As of the Transaction Closingdate hereof, the issued and outstanding Shares Class A ordinary shares of the Issuer will be are registered pursuant to Section 12(b) of the Exchange Act. Following the ClosingDomestication, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Equity Support Shares.
(l) The Issuer is not, and Shares other than to the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” Placement Agents (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Actbelow).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Samples: Subscription Agreement (ACE Convergence Acquisition Corp.)
Issuer Representations and Warranties. The Issuer represents and warrants to Subscriber and each Subscribers Placement Agent (as defined below) that:
(a) The Issuer has been duly incorporated and is validly existing as an exempted company duly incorporated, validly existing and in good standing under the laws of the Cayman Islands. As of the Closing Date, immediately following the Domestication, the Issuer will be duly incorporated, validly existing as a corporation in good standing under the laws of the State of Delaware. The Issuer has all corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As of the Closing Date, all the Equity Support The Acquired Shares will be have been duly authorized by the Issuer and, when issued and delivered to each Subscriber against full payment therefor for the Acquired Shares in accordance with the terms of this Equity Support Subscription Agreement, the Equity Support Acquired Shares will be validly issued, fully paid and non-assessable assessable, free and clear of all liens or other restrictions (except as otherwise stated herein) and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum and articles of association organizational documents (as in effect at such time of issuance) or under the Companies Act, as amended, laws of the Cayman IslandsIslands or laws of the State of Delaware, as the case may be, under any agreement or instrument to which the Issuer is a party or by which the Issuer is bound, or otherwise.
(c) This Equity Support Agreement has Subscription Agreement, the Business Combination Agreement, the Other Subscription Agreements and any other agreements related to or executed in connection with the Transactions (collectively, the “Transaction Documents”) have been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Agreement constitutes the Transaction Documents have been duly authorized, executed and delivered by the other parties thereto, are valid and binding agreement obligations of each Subscriberthe Issuer, this Equity Support Agreement is and are enforceable against the Issuer it in accordance with its their terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, reorganization, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or and (ii) principles of equity, whether considered at law or equity.
(d) The execution, delivery and performance of this Subscription Agreement, including the issuance and sale by of the Issuer of all the Equity Support Acquired Shares pursuant to this Equity Support Agreement, and the performance of its obligations hereunder and under each Pledge Agreement and Control Agreement and the other transactions contemplated therebyhereby, do not and will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreementsubject; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency agency, taxing authority or regulatory body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that properties, that, in the case of clause (i) or (iii), would reasonably be expected to have a Material Adverse Effect Effect. For purposes of this Subscription Agreement, a “Material Adverse Effect” means an event, change, development, occurrence, condition or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreement.
(e) As of their respective filing dates, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC effect with respect to any of the SEC Reports.
Issuer and its subsidiaries, taken together as a whole (f) The Issuer is not required to obtain any consenton a consolidated basis), waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the issuance of the Equity Support Shares pursuant to this Equity Support Agreement, other than (i) filings with the SEC, (ii) filings required by applicable state securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support Agreement; (iv) those required by The Nasdaq Stock Market LLC, including with respect to obtaining approval of the Issuer’s stockholders, and (v) those the failure of which to obtain would not be reasonably be expected to havethat, individually or in the aggregate, a Material Adverse Effect.
(g) As of the date hereof, the Issuer has not received any written communication from a governmental authority that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to havehave a material adverse effect on the business, properties, assets, liabilities, operations, financial condition, stockholders’ equity or results of operations of the Issuer or its respective subsidiaries individually or in taken as a whole and including the aggregatecombined company after giving effect to the Transactions, a Material Adverse Effect.
or materially affect, impede, or prevent the Issuer’s ability to consummate the (hi) Assuming transactions contemplated hereby, including the accuracy of each Subscriber’s representations and warranties set forth in Section 6 of this Equity Support Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer issuance and sale of the Equity Support Acquired Shares by the Issuer to each Subscribers.
(i) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Equity Support Shares.
(l) The Issuer is not, and the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debtsTransactions.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers the Investor that:
(a) The Issuer is an exempted company duly incorporated, validly existing and in good standing under the laws of the Cayman IslandsIslands (to the extent such concept exists in such jurisdiction). The Issuer has all power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, following the Domestication, Issuer will be duly incorporated, validly existing as a corporation and in good standing under the laws of the Cayman IslandsState of Delaware.
(b) As of the Closing Date, all the Equity Support Shares will be duly authorized and, when issued and delivered to each Subscriber the Investor against full payment therefor in accordance with the terms of this Equity Support Subscription Agreement, the Equity Support Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum and articles certificate of association incorporation (as in effect at such time of issuance) or under the Companies Act, as amended, of the Cayman IslandsDelaware General Corporation Law.
(c) This Equity Support Subscription Agreement has been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Subscription Agreement constitutes the valid and binding agreement of each Subscriberthe Investor, this Equity Support Subscription Agreement is enforceable against the Issuer in accordance with its terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or (ii) principles of equity, whether considered at law or equity.
(d) The issuance and sale by the Issuer of all the Equity Support Shares pursuant to this Equity Support Agreement, and the performance of its obligations hereunder and under each Pledge Subscription Agreement and Control Agreement and the transactions contemplated thereby, will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Subscription Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have a Material Adverse Effect or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Subscription Agreement.
(e) As of their respective filing dates, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13July 24, 2021 2020 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations of the SEC promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any of the SEC Reports.
(f) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the issuance of the Equity Support Shares pursuant to this Equity Support Subscription Agreement, other than (i) filings with the SEC, (ii) filings required by applicable state securities laws, (iii) the filings required in accordance with Section 16 13 of this Equity Support Subscription Agreement; , (iv) those required by The Nasdaq Stock Market LLC, including with respect to obtaining approval of the Issuer’s stockholders, and (v) those the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(g) As of the date hereof, the Issuer has not received any written communication from a governmental authority that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(h) Assuming the accuracy of each Subscriberthe Investor’s representations and warranties set forth in Section 6 of this Equity Support Subscription Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Shares by the Issuer to each Subscribersthe Investor.
(i) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.. \
(j) Following As of the Transaction Closingdate hereof, the issued and outstanding Shares Class A ordinary shares of the Issuer will be are registered pursuant to Section 12(b) of the Exchange Act. Following the ClosingDomestication, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Equity Support Shares.
(l) The Issuer is not, and Shares other than to the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” Placement Agents (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Actbelow).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Samples: Subscription Agreement (ACE Convergence Acquisition Corp.)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers that:
(a) The Issuer is an exempted company duly incorporated, a corporation registered and validly existing and in good standing under the laws of the Cayman Islands. The Issuer has all Xxxxxxxxxx Xxxxxxxxxxxx Xxx 0000 (Cth) (“Corporations Act”), with corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Option Agreement. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As The Holder will subscribe for and acquire on each Exercise Closing Date (i) the full legal and beneficial ownership of the Closing Dateapplicable Option Shares free and clear of all encumbrances, all subject to the Equity Support registration of the Holder in the register of shareholders; (ii) the applicable Option Shares will be that have been duly authorized andand validly issued by the Issuer; (iii) the applicable Option Shares free of competing rights, when issued including pre-emptive rights or rights of first refusal; and delivered to each Subscriber against (iv) the applicable Option Shares that are fully paid and have no money owing in respect of them (assuming full payment therefor in accordance with the terms of this Equity Support Option Agreement, the Equity Support Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum and articles of association (as in effect at such time of issuance) or under the Companies Act, as amended, of the Cayman Islands).
(c) This Equity Support Agreement has Option Agreement, and the Other Option Agreements, if any, entered into on or prior to the date hereof, have been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Agreement constitutes and constitute the valid and legally binding agreement obligation of each Subscriberthe Issuer, this Equity Support Agreement is enforceable against the Issuer in accordance with its their terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or and (ii) principles of equity, whether considered at law or equity.
(d) The issuance Assuming the accuracy of Holder’s representations and sale warranties set forth in Section 4 of this Option Agreement, the execution and delivery by the Issuer of all the Equity Support Shares pursuant to this Equity Support AgreementOption Agreement and the Other Option Agreements, and the performance by the Issuer of its obligations hereunder and under each Pledge Agreement and Control this Option Agreement and the Other Option Agreements, including the grant of the Option and issuance and sale of the Option Shares and the consummation of the other transactions contemplated thereby, herein and therein do not and will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that subject, which would reasonably be expected to have have, individually or in the aggregate, a material adverse effect on the business, properties, financial condition condition, shareholders’ equity or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), ) or materially affect the validity of the Equity Support Option or the Option Shares or the legal authority of the Issuer to comply in all material respects with its obligations under the terms of this Equity Support Option Agreement; (ii) result in any violation the constitution of the provisions of Issuer as amended or varied from time to time (the “Constitution”) or other organizational documents (as applicable) of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have have, individually or in the aggregate, a Material Adverse Effect or materially affect the validity of the Equity Support Option or the Option Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Option Agreement.
(e) As of their respective filing dates, all reports required Other than the warrants to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereofpurchase Ordinary Shares, there are no material outstanding securities or unresolved comments in comment letters received instruments issued by or to which the Issuer is a party containing anti-dilution or similar provisions that will be triggered by the Issuer from issuance of (i) the staff of Option or the Division of Corporation Finance of Option Shares or (ii) the SEC with respect options or shares pursuant to any of the SEC ReportsOther Option Agreements, in each case, that have not been validly waived.
(f) The Assuming the accuracy of Holder’s representations and warranties set forth in Section 4 of this Option Agreement, the Issuer is not in default or violation (and no event has occurred which, with notice or the lapse of time or both, would constitute a default or violation) of any term, condition or provision of (i) the organizational documents of the Issuer, (ii) any loan or credit agreement, guarantee, note, bond, mortgage, indenture, lease or other agreement, permit, franchise or license to which the Issuer is now a party or by which the Issuer’s properties or assets are bound or (iii) any statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties, except, in the case of clauses (ii) and (iii), for defaults or violations that have not had and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(g) Assuming the accuracy of Holder’s representations and warranties set forth in Section 4 of this Option Agreement, the Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the execution, delivery and performance by the Issuer of this Option Agreement (including, without limitation, the issuance of the Equity Support Shares pursuant to this Equity Support AgreementOption and the Option Shares), other than (i) filings the filing with the SECCommission of the Registration Statement (as defined below), (ii) filings required by applicable U.S. state or federal or Australian securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support Agreement; by the Exchange, and (iv) those required by The Nasdaq Stock Market LLCconsents or filings, including with respect to obtaining approval of the Issuer’s stockholders, and (v) those the failure of which to obtain or file would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse EffectEffect or have a material adverse effect on the Issuer’s ability to consummate the transactions contemplated hereby, including the sale and issuance of the Option and the Option Shares.
(gh) As of the date of this Option Agreement, the Issuer has the share capital and outstanding indebtedness described in the SEC Documents (as defined below) or as otherwise disclosed by the Issuer. All issued Ordinary Shares have been duly authorized and validly issued, are fully paid and are non-assessable and are not subject to preemptive rights. Except as described in the SEC Documents or as otherwise disclosed by the Issuer, and other than the Other Option Agreements, there are no outstanding options, warrants or other rights to subscribe for, purchase or acquire from the Issuer any Ordinary Shares or other equity interests in the Issuer, or securities convertible into or exchangeable or exercisable for such equity interests. As of the date hereof, the Issuer has no subsidiaries (other than, before consummation of the Business Combination, Merger Sub, and, in addition, after consummation of the Business Combination, each of DCRN, Tritium and each subsidiary of Tritium) and does not own, directly or indirectly, interests or investments (whether equity or debt) in any person, whether incorporated or unincorporated. There are no shareholder agreements, voting trusts or other agreements or understandings to which the Issuer is a party or by which it is bound relating to the voting of any securities of the Issuer, other than as set forth in the SEC Documents or as otherwise disclosed by the Issuer.
(i) The Issuer has not received any written communication from a governmental authority that alleges entity alleging that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
(j) Assuming the accuracy of Holder’s representations and warranties set forth in Section 4 of this Option Agreement, no registration under the Securities Act is required for the offer and sale of the Option or the Option Shares by the Issuer to the Holder in the manner contemplated by this Option Agreement.
(k) Neither the Issuer nor any person acting on its behalf has engaged or will engage in any form of general solicitation or general advertising (within the meaning of Regulation D of the Securities Act) in connection with any offer or sale of the Option and the Option Shares.
(l) The Issuer has not entered into any side letter or similar agreement with any Other Holder pursuant to Other Option Agreements or any other investor in connection with such investor’s direct or indirect investment in the Issuer other than (i) the Business Combination Agreement, (ii) the Other Option Agreements, (iii) agreements or forms thereof that have been publicly filed by the Issuer via the Commission’s XXXXX system, and (iv) contracts with respect to the sale, supply, marketing or distribution of goods or services by operating companies. No Other Option Agreement (other than any Other Option Agreements entered into by investment companies registered under the Investment Company Act or investors advised by an investment adviser subject to regulation under the Investment Advisers Act) contains terms (economic or otherwise) more favorable to any such other Holders than as set forth in this Option Agreement. The Other Option Agreements have not been amended or waived in any material respect and reflect the same Exercise Price and economic terms that are no more favorable to any such Other Holder thereunder than the economic terms of this Option Agreement.
(m) There is no (i) suit, action, proceeding, or arbitration pending, or, to the Issuer’s knowledge, threatened against the Issuer or (ii) judgment, decree, injunction, ruling or order of any governmental entity or arbitrator outstanding against the Issuer, except for such matters as have not had and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(hn) Assuming the accuracy of each SubscriberThe Issuer has not paid, and is not obligated to pay, any brokerage, finder’s representations and warranties set forth or other commission or similar fee in Section 6 of this Equity Support Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer connection with its issuance and sale of the Equity Support Shares by Option or the Issuer to each SubscribersOption Shares.
(io) Neither None of the Issuer Issuer, its subsidiaries or any of their affiliates, nor any person acting on its their behalf has offered has, directly or sold indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would require registration of the Equity Support issuance of any of the Option or the Option Shares by any form of general solicitation or general advertising in violation under the Securities Act, whether through integration with prior offerings pursuant to Rule 502(a) of the Securities ActAct or otherwise.
(jp) Following The Issuer and its affiliates will not directly or indirectly use the Transaction Closingproceeds from the exercise of the Option or issuance of any Option Shares, or lend, contribute or otherwise make available such proceeds to a subsidiary, joint venture partner or other person or entity (i) to fund a person or entity named on an OFAC List (as defined below), (ii) that is owned or controlled by, or acting on behalf of, a person, that is named on an OFAC List, (iii) that is organized, incorporated, established, located, resident or born in, or a citizen, national, or the government, including any political subdivision, agency, or instrumentality thereof, of, Cuba, Iran, North Korea, Syria, the issued and outstanding Shares Crimea region of Ukraine, or any other country or territory embargoed or subject to substantial trade restrictions by the Issuer will be registered pursuant United States, (iv) that is a Designated National as defined in the Cuban Assets Control Regulations, 31 C.F.R. Part 515 or (v) that is a non-U.S. shell bank or providing banking services indirectly to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Acta non-U.S. shell bank.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Equity Support Shares.
(lq) The Issuer is not, and immediately after receipt of payment by the Issuer after for the consummation of the transaction contemplated hereby, Option Shares will not be required to register as be, an “investment company” as such term is defined in within the meaning of the Investment Company Act of 1940, as amended.
(mr) The Issuer ishas made available to the Holder (including via the Commission’s XXXXX system) a copy of each form, report, statement, schedule, prospectus, proxy, registration statement and other document, if any, filed by the Issuer with the Commission since the first date on which any class of securities of the Issuer was registered with the Commission, if any (the “SEC Documents”), which SEC Documents, as of their respective filing dates, complied in all material respects with the applicable requirements of the Exchange Act, Securities Act, and the Issuer after the consummation applicable rules and regulations of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) Commission promulgated thereunder. None of the Commodity SEC Documents filed under the Exchange ActAct (except to the extent that information contained in any SEC Document has been superseded by a later timely filed SEC Document) contained, as amendedwhen filed, other than any untrue statement of a person material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein not misleading, in the case of any SEC Document that is an eligible contract participant under Section 1a(18)(C) a registration statement, or included, when filed, any untrue statement of a material fact or omitted to state a material fact necessary to make the statements therein, in the light of the Commodity Exchange Act).
(n) Neither circumstances under which they were made, not misleading, in the case of all other SEC Documents. The Issuer has timely filed each report, statement, schedule, prospectus, and registration statement that the Issuer nor was required to file with the Issuer after Commission since its inception. There are no material outstanding or unresolved comments in comment letters from the consummation Staff of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and Commission with respect to any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debtsSEC Documents.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Samples: Option Agreement (Tritium DCFC LTD)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers that:
(a) The Issuer has been duly incorporated and is an exempted company duly incorporated, validly existing and as a corporation in good standing under the laws of the Cayman Islands. The Issuer has all State of Delaware, with corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and and, subject to obtaining all approvals necessary for the consummation of the Transactions (collectively, the “Required Approvals”), to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As of the Closing DateSubscription Closing, all the Equity Support Acquired Shares will be have been duly authorized and, when issued and delivered to each Subscriber against full payment therefor of the Purchase Price for the Acquired Shares in accordance with the terms of this Equity Support AgreementSubscription Agreement and registered with the Transfer Agent, the Equity Support Acquired Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum certificate of incorporation and articles of association (as in effect at such time of issuance) bylaws or under the Companies Act, as amended, laws of the Cayman IslandsState of Delaware.
(c) This Equity Support Subscription Agreement has been duly authorized, executed and delivered by the Issuer andand assuming the due authorization, assuming that this Equity Support Agreement constitutes execution and delivery of the valid and binding agreement of each same by the Subscriber, this Equity Support Agreement is enforceable against the Issuer it in accordance with its terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, reorganization, fraudulent conveyance, reorganizationarrangement, moratorium or other laws relating to or affecting the rights of creditors generally, or and (ii) principles of equity, whether considered at law or equity.
(d) The issuance Subject to obtaining the Required Approvals, the execution, delivery and sale performance by the Issuer of all the Equity Support Shares pursuant to this Equity Support Subscription Agreement, including the issuance and sale of the performance of its obligations hereunder and under each Pledge Agreement and Control Agreement and the transactions contemplated therebyAcquired Shares, will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreementsubject; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that that, in the case of clauses (i) and (iii), would be reasonably be expected likely to have a Material Adverse Effect material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries taken as a whole or materially and adversely affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply perform in all material respects with its obligations under this Equity Support Agreementhereunder (a “Material Adverse Effect”).
(e) As of their respective filing dates, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any of the SEC Reports.
(f) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the execution, delivery and performance by the Issuer of this Subscription Agreement (including, without limitation, the issuance of the Equity Support Shares pursuant to this Equity Support AgreementAcquired Shares), other than (i) filings the filing with the SECSecurities and Exchange Commission (the “Commission”) of the Registration Statement (as defined below), (ii) filings required by applicable state securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support AgreementRequired Approvals; (iv) those required by The Nasdaq the New York Stock Market LLCExchange or other applicable stock exchange on which the Acquired Shares are then listed (“NYSE”), including with respect to obtaining approval of the Issuer’s stockholders, and (v) those the failure of which to obtain would not be reasonably be expected likely to have, individually or in the aggregate, a Material Adverse Effect.
(f) Assuming the accuracy of the Subscriber’s representations and warranties set forth in Section 4 of this Subscription Agreement, no registration under the Securities Act is required for the offer and sale of the Acquired Shares by the Issuer to the Subscriber.
(g) Neither the Issuer nor any person acting on its behalf has offered or sold the Acquired Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(h) The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Shares.
(i) The Other Subscription Agreements reflect the same Per Share Purchase Price and other terms and conditions with respect to the purchase of the Acquired Shares that are no more favorable to such subscriber thereunder than the terms of this Subscription Agreement, other than terms particular to the regulatory requirements of such subscriber or its affiliates or related funds that are mutual funds or are otherwise subject to regulations related to the timing of funding and the issuance of the related Acquired Shares. For the avoidance of doubt, this Section 3(i) shall not apply to any document entered into in connection with the purchase of Class A Shares by certain other investors that are existing directors or officers of, or otherwise affiliated or associated with or identified by, the Issuer or Target, with an aggregate purchase price of $23,000,000 (“Insider PIPE Investment”); provided, however, that such Insider PIPE Investment shall be (i) with respect to the same class of common stock being acquired by Subscriber hereunder and at the same Per Share Purchase Price and with other economic terms that are substantially identical to those reflected herein (other than registration rights), and (ii) subject to a separate registration rights agreement which provides for registration of the Insider PIPE Investment within substantially the same time frame as hereunder and does not restrict Subscriber’s registration rights hereunder.
(j) As of their respective filing dates, all reports required to be filed by the Issuer with the Commission since November 5, 2019 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations of the Commission promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the Commission with respect to any of the SEC Reports.
(k) As of the date hereof, the issued and outstanding Class A Shares of the Issuer are registered pursuant to Section 12(b) of the Exchange Act and are listed for trading on the NYSE. There is no suit, action, claim, proceeding or investigation pending or, to the knowledge of the Issuer, threatened against the Issuer by the NYSE or the Commission with respect to any intention by such entity to deregister the Class A Shares or to prohibit or terminate the listing of the Class A Shares on the NYSE, excluding, for the purposes of clarity, the customary ongoing review by NYSE in connection with the Transactions. The Issuer has taken no action that is designed to terminate the registration of the Class A Shares under the Exchange Act prior to the Subscription Closing.
(l) As of the date hereof, Issuer has not received any written communication from a governmental authority that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(h) Assuming the accuracy of each Subscriber’s representations and warranties set forth in Section 6 of this Equity Support Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Shares by the Issuer to each Subscribers.
(i) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(km) The Issuer is not under any obligation acknowledges and agrees that, notwithstanding anything herein to pay any broker’s fee or commission the contrary, the Acquired Shares may be pledged by Subscriber in connection with the a bona fide margin agreement, which shall not be deemed to be a transfer, sale or assignment of the Equity Support Shares.
(l) The Issuer is notAcquired Shares hereunder, and the Issuer after the consummation Subscriber effecting a pledge of the transaction contemplated hereby, will Acquired Shares shall not be required to register as an “investment company” as such term is defined in provide the Investment Company Act of 1940, as amended.
(m) Issuer with any notice thereof or otherwise make any delivery to the Issuer pursuant to this Subscription Agreement. The Issuer is, hereby agrees to execute and the Issuer after the consummation deliver such documentation as a pledgee of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined Acquired Shares may reasonably request in Section 1a(18) connection with a pledge of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act)Acquired Shares to such pledgee by Subscriber.
(n) Neither There are no securities or instruments issued by or to which the Issuer nor is a party containing anti-dilution or similar provisions that will be triggered by the Issuer after the consummation issuance of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, the Acquired Shares or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands lawClass A Shares to be issued pursuant to any Other Subscription Agreement, is and in each case, that have not been or will not be unable validly waived on or prior to pay its debtsthe Closing Date.
(o) The Issuerauthorized capital stock of Issuer consists of (i) 1,000,000 shares of preferred stock, the SPACpar value $0.0001 per share, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly which no shares are issued or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As outstanding as of the date hereofof this Subscription Agreement, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create 175,000,000 shares of common stock, consisting of 150,000,000 shares of Class A Shares and 25,000,000 shares of Class B common stock, par value $0.0001 per share (“tag-along” rights in favor Class B Shares”), of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are which (A) 31,625,000 shares of Class A Shares are fully consistent with its financial needs, objectives issued and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including outstanding as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the date of this Equity Support Subscription Agreement and 7,906,250 shares of Class B Shares are issued and outstanding as of the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light date of its own business objectives, financial condition and expertise this Subscription Agreement and (B) this Equity Support Agreement has been duly approved 24,137,500 warrants, each entitling the holder thereof to purchase one Class A Share, are outstanding issued and authorized by directors outstanding as of the Issuer after due consideration by them date of the foregoing matters and those referred to in Section 5(q) abovethis Subscription Agreement.
Appears in 1 contract
Samples: Subscription Agreement (Osprey Technology Acquisition Corp.)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers that:
(a) The Issuer has been duly incorporated and is an exempted company duly incorporated, validly existing and as a corporation in good standing under the laws of the Cayman IslandsState of Delaware. Each of the Issuer’s subsidiaries has been duly incorporated, is validly existing and (where applicable) in good standing under the laws of its jurisdiction of organization, except where the failure to be in good standing would not, individually or in the aggregate, have a Material Adverse Effect. The Issuer and each of its subsidiaries has all corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted conducted. The Issuer has all corporate power and authority to and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As of the Subscription Closing Date, all the Equity Support Acquired Shares will be duly authorized by the Issuer and, when issued and delivered to each Subscriber against full payment therefor for the Acquired Shares in accordance with the terms of this Equity Support AgreementSubscription Agreement and registered with the Transfer Agent, the Equity Support Acquired Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation be free and clear of or subject to all encumbrances, liens, restrictions, and any preemptive pre-emptive or similar rights created under the Issuer’s memorandum and articles of association (as in effect at such time of issuance) or under the Companies Actrights, as amended, of the Cayman Islandsexcept for restrictions on transfer imposed by applicable securities laws.
(c) This Equity Support Subscription Agreement has been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Subscription Agreement constitutes the valid and binding agreement of each Subscriber, this Equity Support Agreement is the valid and binding obligation of the Issuer, enforceable against the Issuer in accordance with its terms, except as may be limited or otherwise affected by (i) applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or and (ii) principles of equity, whether considered at law or equity.
(d) The execution, delivery and performance by the Issuer of this Subscription Agreement (including compliance by the Issuer with all of the provisions hereof), and the issuance and sale by the Issuer of all the Equity Support Shares pursuant to this Equity Support Agreement, and the performance of its obligations hereunder and under each Pledge Agreement and Control Agreement and the transactions contemplated therebyAcquired Shares, will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer or any of its subsidiaries is subject that would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreementsubject; (ii) result in any violation of the provisions of the organizational documents of the IssuerIssuer or any of its subsidiaries; or (iii) result in subject to obtaining or making, as the case may be, the Issuer Required Approvals, any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its subsidiaries or any of their respective properties or assets, except in the case of clauses (i) or (iii) of this paragraph for any such conflicts, breaches, violations, defaults, creations or impositions that would reasonably be expected to have a Material Adverse Effect not, individually or in the aggregate, materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its the Issuer’s obligations under this Equity Support Subscription Agreement.
(e) As of their respective filing dates, all reports required There are no securities or instruments issued by or to which the Issuer is a party containing anti-dilution or similar provisions that will be filed triggered by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements issuance of the Exchange Act and the rules and regulations of Acquired Shares. Except as described in the SEC promulgated thereunder. As of the date hereofDocuments (as defined below), there are no material outstanding voting agreements, agreements restricting the issuance, sale or unresolved comments in comment letters received by transfer of securities of the Issuer, option or right of first purchase agreements or other agreements of any kind among the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to and any of the stockholders of the Issuer relating to the securities of the Issuer held by them. Except as described in this Subscription Agreement and in the SEC ReportsDocuments, no person or entity has the right to require the Issuer to register any securities of the Issuer under the Securities Act, whether on a demand basis or in connection with the registration of securities of the Issuer for its own account or for the account of any other person or entity.
(f) Neither the Issuer nor any of its subsidiaries is (i) in default or violation (and no event has occurred which, with notice or the lapse of time or both, would constitute a default or violation) of any term, condition or provision of the organizational documents of the Issuer or any of its subsidiaries, (ii) in material default or violation (and no event has occurred which, with notice or the lapse of time or both, would constitute a material default or violation) of (A) any loan or credit agreement, note, bond, mortgage, indenture, lease or other agreement, permit, franchise or license to which the Issuer or any of its subsidiaries is now a party or by which the property or assets of the Issuer or any of its subsidiaries are bound or (B) any statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its subsidiaries or any of their respective properties or assets. The Issuer and its subsidiaries possess all certificates, authorizations and permits issued by the appropriate regulatory authorities necessary to conduct their respective businesses, except where the failure to possess the same would not, individually or in the aggregate, have a Material Adverse Effect, and neither the Issuer nor any such subsidiary has received any notice of proceedings relating to the revocation or modification of any material certificate, authorization or permit.
(g) Neither the Issuer nor any of its subsidiaries is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the execution, delivery and performance by the Issuer of this Subscription Agreement (including, without limitation, the issuance of the Equity Support Shares pursuant to this Equity Support AgreementAcquired Shares), other than (i) filings with the SECSecurities and Exchange Commission (the “Commission”), (ii) filings required by applicable state securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support Agreement; by Nasdaq, if any, and (iv) those clearances, approvals and consents required by to be obtained under all applicable antitrust laws (the “Issuer Required Approvals”).
(h) The Nasdaq Stock Market LLCIssuer has conducted an assessment and determined that none of the Issuer, including any of the Issuer’s subsidiaries, or any of the Issuer’s affiliates (i) produce, design, test, manufacture, fabricate, or develop “critical technologies” as that term is defined in 31 C.F.R. § 800.215; (ii) perform the functions as set forth in column 2 of Appendix A to 31 C.F.R. part 800 with respect to obtaining approval covered investment critical infrastructure; or (iii) maintain or collect, directly or indirectly, “sensitive personal data” as that term is defined in 31 C.F.R. § 800.241; and, therefore, in turn, is not a “TID U.S. business” within the meaning of 31 C.F.R. § 80.248.
(i) As of the date of this Subscription Agreement, the authorized capital stock of the Issuer consists of 2,200,000,000 shares of capital stock, $0.0001 par value per share, of which 2,000,000,000 shares are designated as Common Stock; and 200,000,000 shares are designated as preferred stock. As of the date of this Subscription Agreement, the Issuer has reserved 48,394,822 shares of Common Stock for issuance pursuant to equity incentive plans duly adopted by the Issuer’s board of directors and approved by the Issuer’s stockholders, 9,734,027 shares are subject to outstanding options under such equity incentive plans, 4,484,204 shares are subject to outstanding restricted stock units under such equity incentive plans, and (v) those 9,279,342 shares remain available for grants under such equity incentive plans. 8,569,816 shares of Common Stock are reserved for issuance pursuant to the failure Issuer’s employee stock purchase plan duly adopted by the Issuer’s board of which directors and approved by the Issuer’s stockholders. No shares of preferred stock are issued and outstanding. All of the issued and outstanding shares of the Issuer’s capital stock have been duly authorized and validly issued and are fully paid, nonassessable and free of pre-emptive rights and were issued in full compliance with applicable legal requirements. The Issuer shall have reserved out of its authorized and unissued Common Stock, solely for the purpose of effecting the purchase of the Acquired Shares hereunder, 2,074,688 shares of Common Stock. All of the authorized shares of Common Stock are entitled to obtain would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effectone vote per share.
(gj) As of the date hereof, Neither the Issuer nor any of its subsidiaries has not received any written communication from a governmental authority entity or third party that alleges that the Issuer or any of its subsidiaries is not in material non-compliance with or is in material default or violation of any applicable law, except where such any non-compliance, default or violation would not reasonably be expected to havenot, individually or in the aggregate, have a Material Adverse Effect.
(hk) The issued and outstanding shares of Common Stock are registered pursuant to Section 12(b) of the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder (the “Exchange Act”), and are listed for trading on Nasdaq under the symbol “RUN”. There is no suit, action, proceeding or investigation pending or, to the knowledge of the Issuer, threatened against the Issuer by Nasdaq or the Commission, respectively, to prohibit or terminate the listing of the shares of Common Stock on Nasdaq, to deregister the shares of Common Stock under the Exchange Act or otherwise to the effect that Issuer is not in compliance with the listing or maintenance requirements of Nasdaq. The Issuer has taken no action that is designed to terminate the registration of the shares of Common Stock under the Exchange Act. Issuer is in compliance with all such listing and maintenance requirements. The issuance and sale of the Acquired Shares hereunder do not contravene the rules and regulations of Nasdaq.
(l) Assuming the accuracy of each Subscriber’s representations and warranties set forth in Section 6 4 of this Equity Support Subscription Agreement, no registration under the Securities Act of 1933, as amended amended, and the rules and regulations promulgated thereunder (the “Securities Act”), ) is required for the offer and sale of the Equity Support Acquired Shares by the Issuer to each SubscribersSubscriber. Issuer is a “well-known seasoned issuer” as defined in Rule 405 under the Securities Act.
(im) Neither the Issuer nor anyone acting on its behalf has offered the shares of Common Stock or any similar securities for sale to, or solicited any offer to buy any of the same from, or otherwise approached or negotiated in respect thereof with, any person other than Subscriber, which has been offered shares of Common Stock at a private sale for investment.
(n) None of the Issuer nor any of its affiliates has offered shares of Common Stock or any similar securities during the six months prior to the date hereof to anyone other than Subscriber in connection with the transactions contemplated hereby. Other than the foregoing and as disclosed in the SEC Documents (as defined below), the Issuer has no current intention to offer shares of Common Stock or any similar security during the six months from the date hereof other than in connection with the transactions contemplated hereby.
(o) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Acquired Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction Closingadvertising, including, but not limited to, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(bfollowing: (1) of the Exchange Act. Following the Closingany advertisement, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under article, notice or other communication published in any obligation to pay any broker’s fee or commission in connection with the sale of the Equity Support Shares.
(l) The Issuer is notnewspaper, and the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) ismagazine, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly similar media or indirectly, negotiated broadcast over television or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.radio;
Appears in 1 contract
Samples: Subscription Agreement (Sunrun Inc.)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers as of the date hereof and as of the Closing Date that:
(a) The Issuer has been duly incorporated and is validly existing as an exempted company duly incorporated, validly existing limited by shares and is in good standing under the laws of the Cayman Islands. The Issuer has all Bermuda, with company power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As Each subsidiary of the Closing Date, the Issuer will be has been duly incorporated, incorporated or formed and is validly existing and in good standing under the laws of its jurisdiction of incorporation or formation, except as would not reasonably be expected to have a material adverse effect on the Cayman Islandsbusiness, properties, financial condition, shareholders’ equity or results of operations of the Issuer (a “Material Adverse Effect”).
(b) As of the Closing Date, all the Equity Support Shares will be The Acquired Securities have been duly authorized and, when issued and delivered to each Subscriber against full payment therefor for the Acquired Securities in accordance with the terms of this Equity Support AgreementSubscription Agreement and duly registered, the Equity Support Acquired Securities will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s bye-laws or under the laws of Bermuda. The Underlying Common Shares have been duly authorized and reserved for issuance and, when issued and delivered to Subscriber against full payment therefore in accordance with the terms of the Certificate of Designations and the Warrant and duly registered, such Underlying Common Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum and articles of association (as in effect at such time of issuance) bye-laws or under the Companies Act, as amended, laws of the Cayman IslandsBermuda.
(c) This Equity Support Subscription Agreement has been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Agreement constitutes the valid and binding agreement of each Subscriber, this Equity Support Agreement is enforceable against the Issuer it in accordance with its terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or and (ii) principles of equity, whether considered at law or equity.
(d) The execution, delivery and performance of this Subscription Agreement (including compliance by the Issuer with all of the provisions hereof), the issuance and sale by of the Issuer of all the Equity Support Shares pursuant to this Equity Support Agreement, Acquired Securities and the performance consummation of its obligations hereunder and under each Pledge Agreement and Control Agreement and the other transactions contemplated thereby, herein will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any material indenture, mortgage, deed of trust, loan agreement, lease, license or other material agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”)subject, or materially affect the validity of the Equity Support Shares Acquired Securities or the legal authority of the Issuer to comply in all material respects with its obligations under the terms of this Equity Support Subscription Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have a Material Adverse Effect or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreementproperties.
(e) As of their respective filing dates, all reports required There are no securities or instruments issued by or to which the Issuer is a party containing anti-dilution or similar provisions that will be filed triggered by the Issuer with issuance of (i) the U.S. Acquired Securities and Exchange Commission or the Underlying Common Shares that have not been or will not be validly waived on or prior to the Closing Date.
(f) Other than the “SEC”) since January 13, 2021 Issuer’s outstanding Series A preference shares (which will be redeemed in full prior to the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereofClosing), there are no material outstanding Senior Shares or unresolved comments Parity Shares (as such terms are defined in comment letters received by the Issuer from the staff Certificate of the Division of Corporation Finance of the SEC with respect to any of the SEC ReportsDesignation).
(fg) The Issuer is not in default or violation (and no event has occurred which, with notice or the lapse of time or both, would constitute a default or violation) of any term, condition or provision of (i) the organizational documents of the Issuer, (ii) any loan or credit agreement, note, bond, mortgage, indenture, lease or other agreement, permit, franchise or license to which the Issuer is now a party or by which the Issuer’s properties or assets are bound or (iii) any statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties, except, in the case of clauses (ii) and (iii), for defaults or violations that have not had and would not be reasonably likely to have, individually or in the aggregate, a Material Adverse Effect.
(h) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the execution, delivery and performance by the Issuer of this Subscription Agreement (including, without limitation, the issuance of the Equity Support Shares pursuant to this Equity Support AgreementAcquired Securities or the Underlying Common Shares), other than (i) filings with required by the SECSecurities and Exchange Commission (the “Commission”), Nasdaq or the Financial Industry Regulatory Authority, (ii) filings required by applicable state securities or similar laws, (iii) the filings permissions of the Bermuda Monetary Authority in connection with the exchange control and requisite approvals/notifications required in accordance with Section 16 of this Equity Support Agreement; pursuant to the Insurance Axx 0000, as amended and (iv) those required by The Nasdaq Stock Market LLCsuch consents, including with waivers, authorizations, orders, notices, filings or registrations as would not impair in any material respect to obtaining approval the consummation of the Issuer’s stockholders, and (v) those the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effecttransactions contemplated by this Subscription Agreement.
(g) As of the date hereof, the Issuer has not received any written communication from a governmental authority that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(hi) Assuming the accuracy of each Subscriber’s representations and warranties set forth in Section 6 4 of this Equity Support Subscription Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Shares Acquired Securities by the Issuer to each SubscribersSubscriber.
(ij) Neither the Issuer nor any person acting on its behalf has offered engaged or sold the Equity Support Shares by will engage in any form of general solicitation or general advertising in violation (within the meaning of Regulation D of the Securities Act.
(j) Following the Transaction Closing, the issued and outstanding Shares in connection with any offer or sale of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange ActAcquired Securities.
(k) The Issuer is not under any obligation has made available to pay any brokerSubscriber (including via the Commission’s fee or commission in connection with the sale EXXXX system) a copy of the Equity Support Sharespreliminary joint proxy statement/prospectus that forms a part of the Issuer’s registration statement on Form S-4 (File No. 333-226620) (the “Proxy Statement/Prospectus”). When filed, the Proxy Statement/Prospectus did not contain and, when amended, the Proxy Statement/Prospectus will not contain as of the date of such amendment with respect to those disclosures that are amended, any untrue statement of a material fact or any omission to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; provided, that the Issuer makes no such representation or warranty with respect to any information in the Proxy Statement/Prospectus relating to Easterly, Easterly’s affiliates or the special meeting of Easterly’s stockholders.
(l) Except for such matters as have not had and would not be reasonably likely to have, individually or in the aggregate, a Material Adverse Effect, there is no (i) action, lawsuit, claim, suit, arbitration, hearing, examination or judicial or legal proceeding or investigation, whether civil, criminal or administrative, at law or in equity, or by or before any governmental authority pending, or, to the knowledge of the Issuer, threatened against the Issuer or (ii) judgment, decree, injunction, ruling or order of any governmental entity or arbitrator outstanding against the Issuer.
(m) The consolidated financial statements (including the related notes thereto) of the Issuer and its consolidated subsidiaries included in the Proxy Statement/Prospectus present fairly in all material respects the financial position of the entities to which they relate as of the dates indicated and the results of their operations and the changes in their cash flows for the periods specified; such financial statements have been prepared in conformity with GAAP applied on a consistent basis throughout the periods covered thereby, and the supporting schedules present fairly in all material respects the information required to be stated therein. PricewaterhouseCoopers LLP, who has audited certain financial statements of the Issuer and its subsidiaries as set forth in the Proxy Statement/Prospectus is an independent registered public accounting firm with respect to the Issuer and its subsidiaries within the applicable rules and regulations adopted by the Commission and the Public Company Accounting Oversight Board (United States) and as required by the Securities Act.
(n) Since the date of the most recent balance sheet of the Issuer included in the Proxy Statement/Prospectus (i) there has not been any material change in the share capital or long-term debt of the Issuer or any of its subsidiaries, or any dividend or distribution of any kind declared, set aside for payment, paid or made by the Issuer on any class of share capital, or any material adverse change, or any development involving a prospective material adverse change, in or affecting the business, properties, rights, assets, management, financial position, results of operations or prospects of the Issuer and its subsidiaries taken as a whole; (ii) neither the Issuer nor any of its subsidiaries has entered into any transaction or agreement that is material to the Issuer and its subsidiaries taken as a whole or incurred any liability or obligation, direct or contingent, that is material to the Issuer and its subsidiaries taken as a whole; and (iii) neither the Issuer nor any of its subsidiaries has sustained any material loss or interference with its business from fire, explosion, flood or other calamity, whether or not covered by insurance, or from any labor disturbance or dispute or any action, order or decree of any court or arbitrator or governmental or regulatory authority, except in each case as otherwise disclosed in the Proxy Statement/Prospectus or as contemplated by this Subscription Agreement.
(o) The Issuer is not, and immediately after giving effect to the Issuer after the consummation issuance and sale of the transaction contemplated herebyAcquired Securities and the application of the proceeds thereof, will not be be, required to register as an “investment company” as such term is defined in within the meaning of the Investment Company Act of 1940, as amended, and the rules and regulations of the Commission thereunder.
(mp) The Issuer isExcept for placement agent fees payable to Citigroup Global Markets Inc. (“Citi”) and Dxxxxxx & Partners Securities, LLC (“D&P” and, together with Citi, in their respective capacities as placement agents with respect to the issuance and the Issuer after the consummation sale of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectivelyAcquired Securities, the “Project Maple PartiesPlacement Agents”) have notat the Closing, directly the Issuer has not paid, and is not obligated to pay, any brokerage, finder’s or indirectly, negotiated other fee or entered into an Excluded Financing commission in connection with any other parties for the benefit its issuance and sale of the IssuerAcquired Securities, the SPACincluding, the shareholders of the Issuer or the shareholders of the SPAC. For for the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As any fee or commission payable to any shareholder or affiliate of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third partiesIssuer.
(q) The Issuer is not (i) a person or entity named on the List of Specially Designated Nationals and Blocked Persons, the Executive Order 13599 List, the Foreign Sanctions Evaders List, or the Sectoral Sanctions Identification List, each of which is capable administered by the U.S. Treasury Department’s Office of evaluating independently Foreign Assets Control (“OFAC”) (collectively, the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement“OFAC Lists”); (ii) has determined based a person with whom a transaction is prohibited by Executive Order 13224, the BSA/Patriot Act, the Trading with the Enemy Act or the foreign asset control regulations of the United States Treasury Department; (iii) owned or controlled by, or acting on behalf of, a person, that is named on an OFAC List or a person under clause (ii); (iv) a person having its own independent review and such professional advice principal place of business or the majority of its business operations (measured by revenues) located in any country described in clause (ii); (v) organized, incorporated, established, located, resident or born in, or a citizen, national, or the government, including any political subdivision, agency, or instrumentality thereof, of, Cuba, Iran, North Korea, Syria, the Crimea region of Ukraine, or any other country or territory embargoed or subject to substantial trade restrictions by the United States; (vi) a Designated National as it deems appropriate that this Equity Support Agreement and defined in the transactions contemplated hereby are Cuban Assets Control Regulations, 31 C.F.R. Part 515; or (Avii) are fully consistent with its a non-U.S. shell bank or providing banking services indirectly to a non-U.S. shell bank. If the Issuer is a financial needsinstitution subject to the Bank Secrecy Act (31 U.S.C. section 5311 et seq.), objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to itas amended by the USA PATRIOT Act of 2001, and its implementing regulations (C) are a fitcollectively, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transactionthe “BSA/PATRIOT Act”), notwithstanding that the substantial risks inherent thereinIssuer maintains policies and procedures reasonably designed to comply with applicable obligations under the BSA/PATRIOT Act. To the extent required, the Issuer maintains policies and procedures reasonably designed to ensure compliance with OFAC-administered sanctions programs, including for the screening of its investors against the OFAC Lists. The Issuer does not and will not, directly or indirectly, do business in particular but without limitationor with Cuba or Venezuela, the provisions or with any agency or instrumentality of Sections 7either of them, 13 and 15in each case in violation of U.S. federal law.
(r) (i) The directors section of the Proxy Statement/Prospectus entitled “Description of Sirius Group Share Capital” accurately sets forth the classes and numbers of equity securities of the Issuer have concluded outstanding as of that date.
(As) the this Equity Support Agreement and the transactions contemplated hereby are suitable The Issuer is treated as a corporation for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) aboveU.S. federal income tax purposes.
Appears in 1 contract
Samples: Subscription Agreement (Easterly Acquisition Corp.)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers Subscriber that:
(a) The Issuer has been duly incorporated and is an exempted company duly incorporated, validly existing and as a corporation in good standing under the laws of the Cayman Islands. The Issuer has all State of Delaware, with corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As of the Closing Date, all the Equity Support The Acquired Shares will be have been duly authorized by the Issuer and, when issued and delivered to each Subscriber against full payment therefor for the Acquired Shares in accordance with the terms of this Equity Support AgreementSubscription Agreement and registered with the Issuer’s transfer agent, the Equity Support Acquired Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum certificate of incorporation and articles of association (as in effect at such time of issuance) bylaws or under the Companies Act, as amended, laws of the Cayman IslandsState of Delaware or pursuant to any agreement or other instrument to which the Issuer is a party or by which it is otherwise bound.
(c) This Equity Support Subscription Agreement, the Other Subscription Agreements, the subscription agreements related to the Key Anchor Investment and the Merger Agreement has (collectively, the “Transaction Documents”) have been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Agreement constitutes the valid and binding agreement of each Subscriber, this Equity Support Agreement is are enforceable against the Issuer in accordance with its their respective terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or and (ii) principles of equity, whether considered at law or equity.
(d) The issuance execution and sale delivery by the Issuer of all the Equity Support Shares pursuant to this Equity Support AgreementTransaction Documents, and the performance by the Issuer of its obligations hereunder under the Transaction Documents, including the issuance and under each Pledge Agreement sale of the Acquired Shares and Control the compliance by the Issuer with all of the provisions of this Subscription Agreement and the consummation of the transactions herein will be done in accordance with The Nasdaq Stock Market LLC (the “Nasdaq”) marketplace rules or the rules of such other applicable stock exchange on which the Issuer’s or its successor’s common stock is then listed, and the consummation of the other transactions contemplated therebyherein, do not and will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreementsubject; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that that, in the cases of clauses (i) and (iii), would reasonably be expected to have have, individually or in the aggregate, a material adverse effect on the business, properties, financial condition, stockholders’ equity or results of operations of the Issuer (a “Material Adverse Effect Effect”) or materially affect the validity or enforceability of the Equity Support Acquired Shares or the ability or legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Subscription Agreement.
(e) As of their respective filing dates, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any of the SEC Reports.
(f) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the execution, delivery and performance by the Issuer of this Subscription Agreement (including, without limitation, the issuance of the Equity Support Shares pursuant to this Equity Support AgreementAcquired Shares), other than (i) filings the filing with the SECUnited States Securities and Exchange Commission (the “Commission”) of the Registration Statement (as defined below), (ii) the filings required by applicable state or federal securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support Agreement; 10(m), (iv) those required by The the Nasdaq Stock Market LLCor such other applicable stock exchange on which the Issuer’s common stock is then listed, including with respect to obtaining approval of the Issuer’s stockholdersstockholder approval, and (v) those any consent, waiver, authorization or order of, notice to, or filing or registration, the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(gf) As The issued and outstanding Class A Shares are registered pursuant to Section 12(b) of the date hereofSecurities Exchange Act of 1934, as amended (the “Exchange Act”), and are listed for trading on the Nasdaq or such other applicable stock exchange on which the Issuer’s or its successor’s common stock is listed. There is no suit, action, proceeding or investigation pending or, to the knowledge of the Issuer, threatened against the Issuer by the Nasdaq or the Commission with respect to any intention by such entity to deregister the Class A Shares or prohibit or terminate the listing of the Class A Shares on the Nasdaq. The Issuer has not received any written communication from a governmental authority taken no action that alleges that is designed to terminate the Issuer is not in compliance with registration of the Class A Shares under the Exchange Act or the listing of the Class A Shares on the Nasdaq (unless such termination on the Nasdaq is in default order to switch the listing to the New York Stock Exchange or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to have, individually or provide for a successor listing in connection with the aggregate, a Material Adverse EffectTransaction).
(hg) Assuming the accuracy of each Subscriber’s representations and warranties set forth in Section 6 of this Equity Support Agreement4, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Acquired Shares by the Issuer to each SubscribersSubscriber in the manner contemplated by this Subscription Agreement.
(ih) Neither the Issuer nor any person acting on its behalf has offered engaged or sold the Equity Support Shares by will engage in any form of general solicitation or general advertising in violation (within the meaning of Regulation D of the Securities Act) in connection with any offer or sale of the Acquired Shares.
(i) The Issuer has made available to Subscriber (including via the Commission’s XXXXX system) a copy of each form, report, statement, schedule, prospectus, proxy, registration statement and other document, if any, filed by the Issuer with the Commission since its initial registration of the Class A Shares (the “SEC Documents”), which SEC Documents, as of their respective filing dates, complied in all material respects with the requirements of the Exchange Act or the Securities Act applicable to the SEC Documents and the rules and regulations of the Commission promulgated thereunder applicable to the SEC Documents. None of the SEC Documents filed under the Exchange Act or the Securities Act (except to the extent that information contained in any SEC Document has been superseded by a later timely filed SEC Document) contained, when filed any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. The Issuer has timely filed each report, statement, schedule, prospectus, and registration statement that the Issuer was required to file with the Commission since its inception. There are no material outstanding or unresolved comments in comment letters from the Staff of the Commission with respect to any of the SEC Documents. The financial statements of the Issuer included in the SEC Documents comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing and fairly present in all material respects the financial position of the Issuer as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, year-end audit adjustments.
(j) Following Other than as disclosed in the Transaction ClosingIssuer’s filings with the SEC, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale Transactions, the Issuer has not entered into any subscription agreement, side letter or similar agreement or understanding with any other investor in the Transaction in connection with such investor’s direct or indirect investment in the Issuer other than as contemplated by the Merger Agreement, the Other Subscription Agreements and the Key Anchor Investment. The Other Subscription Agreements reflect the same Share Purchase Price and other terms with respect to the purchase of the Equity Support Shares.
(l) The Issuer is not, and Class A Shares thereunder that are not more advantageous to such subscriber thereunder than the Issuer after the consummation terms of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amendedthis Subscription Agreement, other than a person terms particular to the regulatory requirements of such subscriber or its affiliates or related funds that is an eligible contract participant under Section 1a(18)(C) are mutual funds or are otherwise subject to regulations related to the timing of funding and the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation issuance of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPACClass A Shares thereunder. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility this Section 3(j) shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party apply to any agreement document entered into in connection with any third parties containing “most favored nation” clauses the Key Anchor Investment; provided, however, that (i) could such Key Anchor Investment shall be reasonably expected with respect to be breached the same class of common stock being acquired by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks Subscriber hereunder and benefits to it that may arise in respect of at the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.same Share Purchase Price.3
Appears in 1 contract
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers that:
(a) a. The Issuer has been duly incorporated and is an exempted company duly incorporated, validly existing and as a corporation in good standing under the laws of the Cayman Islands. The Issuer has all State of Delaware, with corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As of the Closing Date, all the Equity Support b. The Acquired Shares will be have been duly authorized and, when issued and delivered to each Subscriber against full payment therefor for the Acquired Shares in accordance with the terms of this Equity Support Subscription Agreement, the Equity Support Acquired Shares will be validly issued, fully paid and non-assessable assessable, free and clear of any liens or other restrictions (other than those arising under applicable laws) and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum certificate of incorporation and articles of association (as in effect at such time of issuance) bylaws or under the Companies Act, as amended, laws of the Cayman IslandsState of Delaware.
c. This Subscription Agreement, the Other Subscription Agreements and the Combination Agreement (ccollectively, the “Transaction Documents”) This Equity Support Agreement has have been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Agreement constitutes Issuer. The Transaction Documents constitute the valid and legally binding agreement obligation of each Subscriberthe Issuer, this Equity Support Agreement is enforceable against the Issuer in accordance with its their terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or generally and (ii) principles of equity, whether considered at law or equity.
(d) d. The issuance execution and sale delivery by the Issuer of all the Equity Support Shares pursuant to this Equity Support AgreementTransaction Documents, and the performance by the Issuer of its obligations hereunder under the Transaction Documents, including the issuance and under each Pledge Agreement and Control Agreement sale of the Acquired Shares and the consummation of the other transactions contemplated therebyherein and therein, do not and will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that subject, which would reasonably be expected to have have, individually or in the aggregate, a material adverse effect on (x) the business, general affairs, properties, prospects, financial condition condition, stockholders’ equity, management, or results of operations of the Issuer, (y) the validity of the Acquired Shares or (z) the legal authority or ability of the Issuer to timely comply with the terms of the Combination Agreement or this Subscription Agreement, including the sale and its subsidiaries, taken as a whole issuance of the Acquired Shares (a “Material Adverse Effect”), or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have have, individually or in the aggregate, a Material Adverse Effect Effect.
e. There are no securities or materially affect instruments issued by or to which the validity Issuer is a party containing anti-dilution or similar provisions that will be triggered by the issuance of (i) the Loans (as defined in Section 9(d)) or related warrants, (ii) the Acquired Shares or (iii) the Class A Shares to be issued pursuant to any Other Subscription Agreement, in each case, that have not been or will not be validly waived on or prior to the Closing Date.
f. The Issuer is not in default or violation (and no event has occurred which, with notice or the lapse of time or both, would constitute a default or violation) of any term, condition or provision of (i) the organizational documents of the Equity Support Shares Issuer, (ii) any loan or the legal authority of credit agreement, guarantee, note, bond, mortgage, indenture, lease or other agreement, permit, franchise or license to which the Issuer is now a party or by which the Issuer’s properties or assets are bound or (iii) any statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties, except, in the case of clauses (ii) and (iii), for defaults or violations that have not had and would not reasonably be expected to comply have, individually or in all material respects with its obligations under this Equity Support Agreementthe aggregate, a Material Adverse Effect.
(e) As of their respective filing dates, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any of the SEC Reports.
(f) g. The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the execution, delivery and performance by the Issuer of this Subscription Agreement (including, without limitation, the issuance of the Equity Support Shares pursuant to this Equity Support AgreementAcquired Shares), other than (i) filings the filing with the SECSecurities and Exchange Commission (the “Commission”) of the Registration Statement (as defined below), (ii) filings required by applicable state or federal securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support Agreement; 9(o), (iv) those required by The Nasdaq Stock Market LLCNasdaq, including with respect to obtaining approval of the Issuer’s stockholdersstockholder approval, and (v) those the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
h. As of the date hereof and as of immediately prior to the Closing: the authorized capital stock of the Issuer consists of (gi) 1,000,000 shares of preferred stock, par value $0.0001 per share (“Preferred Stock”), (ii) 250,000,000 Class A Shares and (iii) 20,000,000 shares of Class B common stock, par value $0.0001 per share (“Class B Shares” and, together with the Class A Shares, the “Common Stock”). As of the date hereof and as of immediately prior to the Closing (except with respect to warrants that may be issued as described in Section 9(d)): (A) no shares of Preferred Stock are issued and outstanding, (B) 35,000,000 Class A Shares are issued and outstanding, (C) 8,750,000 Class B Shares are issued and outstanding and (D) 18,333,334 warrants (the “DCRC Warrants”), each entitling the holder thereof to purchase one Class A Share at an exercise price of $11.50, are outstanding (“Warrants”). No Warrants are exercisable on or prior to the Closing. All (i) issued and outstanding Class A Shares and Class B Shares have been duly authorized and validly issued, are fully paid and nonassessable and are not subject to preemptive rights and (ii) outstanding Warrants have been duly authorized and validly issued, are fully paid and are not subject to preemptive rights. Other than DCRC Merger Sub Inc., as of the date hereof, the Issuer has no subsidiaries and does not own, directly or indirectly, interests or investments (whether equity or debt) in any person, whether incorporated or unincorporated. There are no stockholder agreements, voting trusts or other agreements or understandings to which the Issuer is a party or by which it is bound relating to the voting of any Equity Interests, other than (A) the letter agreements entered into by the Issuer in connection with the Issuer’s initial public offering on March 26, 2021 pursuant to which the Issuer’s sponsors and the Issuer’s executive officers and independent directors agreed to vote in favor of the Transaction, and (B) as contemplated by the Combination Agreement. Except as set forth above and pursuant to the Other Subscription Agreements, the Combination Agreement and the other agreements and arrangements referred to therein or in the SEC Documents (as defined below), as of the date of this Subscription Agreement, there are no outstanding options, warrants or other rights to subscribe for, purchase or acquire from the Issuer any Common Stock, Preferred Stock or other equity interests in the Issuer, or securities convertible into or exchangeable or exercisable for such equity interests.
i. The Issuer has not received any written communication from a governmental authority that alleges entity alleging that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
j. The issued and outstanding Class A Shares are, and upon the closing of the Transaction will be, registered pursuant to Section 12(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and listed on Nasdaq. There is no suit, action, proceeding or investigation pending or, to the Issuer’s knowledge, threatened against the Issuer by Nasdaq or the Commission with respect to any intention by such entity to deregister the Class A Shares or prohibit or terminate the listing of the Class A Shares on Nasdaq. The Issuer has taken no action that is designed to terminate the registration of the Class A Shares under the Exchange Act or the listing of the Class A Shares on Nasdaq.
k. Assuming the accuracy of Subscriber’s representations and warranties set forth in Section 4, no registration under the Securities Act is required for the offer and sale of the Acquired Shares by the Issuer to Subscriber in the manner contemplated by this Subscription Agreement.
l. Neither the Issuer nor any person acting on its behalf has engaged or will engage in any form of general solicitation or general advertising (within the meaning of Regulation D of the Securities Act) in connection with any offer or sale of the Acquired Shares.
m. Neither the Issuer nor Decarbonization Plus Acquisition Sponsor III LLC, a Delaware limited liability company (the “Sponsor”), has entered into any subscription agreement, side letter or other agreement with any Other Subscriber or any other investor in connection with such Other Subscriber’s or investor’s direct or indirect investment in the Issuer other than (i) the Other Subscription Agreements and (ii) the letter agreement, dated March 23, 2021, by and among the Sponsor, the Issuer and the other parties thereto. The Other Subscription Agreements have not been amended in any material respect following the date of this Subscription Agreement and reflect the same Share Purchase Price and terms that are no more favorable to any such Other Subscriber thereunder than the terms of this Subscription Agreement.
n. The Issuer has made available to Subscriber (including via the Commission’s XXXXX system) a copy of each form, report, statement, schedule, prospectus, proxy, registration statement and other document, if any, filed by the Issuer with the Commission since its initial registration of the Class A Shares (the “SEC Documents”), which SEC Documents, as of their respective filing dates, complied in all material respects with the applicable requirements of the Exchange Act and the applicable rules and regulations of the Commission promulgated thereunder. None of the SEC Documents filed under the Exchange Act (except to the extent that information contained in any SEC Document has been superseded by a later timely filed SEC Document) contained, when filed, any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein not misleading, in the case of any SEC Document that is a registration statement, or included, when filed, any untrue statement of a material fact or omitted to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, in the case of all other SEC Documents; provided, that, with respect to the proxy statement to be filed by the Issuer with respect to the Transaction or any of its affiliates included in any SEC Document or filed as an exhibit thereto, the representation and warranty in this sentence relating to any person or entity other than the Issuer is made to the Issuer’s knowledge. Except with respect to the Issuer’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2021, the Issuer has timely filed each report, statement, schedule, prospectus and registration statement that the Issuer was required to file with the Commission since its inception. There are no material outstanding or unresolved comments in comment letters from the Staff of the Commission with respect to any of the SEC Documents. Subject to the immediately following sentence, the financial statements of the Issuer included in the SEC Documents comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing and fairly present in all material respects the financial position of the Issuer as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, year-end audit adjustments. Notwithstanding the foregoing, no representation is being made with respect to the accounting treatment of the issued and outstanding DCRC Warrants arising in connection with any required restatement of DCRC’s historical financial statements, or as to any deficiencies in disclosure (including with respect to financial statement presentation or accounting and disclosure controls) arising from the treatment of such warrants as equity rather than liabilities.
o. There is no (i) suit, action, proceeding or arbitration before a governmental authority or arbitrator pending, or, to the Issuer’s knowledge, threatened against the Issuer, or (ii) judgment, decree, injunction, ruling or order of any governmental entity or arbitrator outstanding against the Issuer, except for such matters as have not had and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
p. The Issuer has not paid, and is not obligated to pay, any brokerage, finder’s or other commission or similar fee in connection with its issuance and sale of the Acquired Shares, except for placement fees payable to X.X. Xxxxxx Securities LLC (h) Assuming the accuracy of each Subscriber’s representations and warranties set forth in Section 6 of this Equity Support Agreement, no registration under the Securities Act of 1933, as amended (the “Securities ActX.X. Xxxxxx”), is required Citigroup Global Markets Inc. (“Citigroup”) and Xxxxxx, Xxxxxxxx & Company, Incorporated (“Stifel”), in their capacity as placement agents for the offer and sale of the Equity Support Acquired Shares by (in such capacity, the Issuer to each Subscribers“Placement Agents”).
(i) Neither q. None of the Issuer Issuer, its subsidiaries or any of their affiliates, nor any person acting on its their behalf has offered has, directly or sold indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would require registration of the Equity Support issuance of any of the Acquired Shares by any form of general solicitation or general advertising in violation under the Securities Act, whether through integration with prior offerings pursuant to Rule 502(a) of the Securities ActAct or otherwise.
(j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Equity Support Shares.
(l) r. The Issuer is not, and immediately after receipt of payment for the Issuer after the Acquired Shares and consummation of the transaction contemplated herebyTransaction, will not be required to register as be, an “investment company” as such term is defined in within the meaning of the Investment Company Act of 1940, as amended.
(m) s. The Issuer isacknowledges and agrees that, notwithstanding anything herein to the contrary, the Acquired Shares may be pledged by Subscriber in connection with a bona fide margin agreement, provided such pledge shall be (i) pursuant to an available exemption from the registration requirements of the Securities Act or (ii) pursuant to, and in accordance with, a registration statement that is effective under the Securities Act at the time of such pledge, and Subscriber effecting a pledge of Acquired Shares shall not be required to provide the Issuer after with any notice thereof; provided, however, that neither the consummation of the transaction contemplated hereby will be, an “eligible contract participant” Issuer or their counsel shall be required to take any action (as or refrain from taking any action) in connection with any such term is defined in Section 1a(18) of the Commodity Exchange Act, as amendedpledge, other than a person providing any such lender of such margin agreement with an acknowledgment that is an eligible contract participant under Section 1a(18)(C) the Acquired Shares are not subject to any contractual prohibition on pledging or lock up, the form of the Commodity Exchange Act).
(n) Neither such acknowledgment to be subject to review and comment by the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debtsall respects.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Samples: Subscription Agreement (Decarbonization Plus Acquisition Corp III)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers Subscriber that:
(a) The Issuer has been duly incorporated and is an exempted company duly incorporated, validly existing and as a corporation in good standing under the laws of the Cayman Islands. The Issuer has all State of Delaware, with corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As of the Closing Date, all the Equity Support The Acquired Shares will be have been duly authorized by the Issuer and, when issued and delivered to each Subscriber against full payment therefor for the Acquired Shares in accordance with the terms of this Equity Support Subscription Agreement, the Equity Support Acquired Shares will be validly issued, fully paid and non-assessable assessable, free and clear of all liens or other restrictions except as otherwise stated herein and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum certificate of incorporation, as amended concurrently with the Closing, and articles of association (as in effect at such time of issuance) bylaws or under the Companies Act, as amended, laws of the Cayman IslandsState of Delaware or otherwise.
(c) This Equity Support Subscription Agreement, the Merger Agreement has and the Other Subscription Agreements (collectively, the “Transaction Documents”) have been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Agreement constitutes the Transaction Documents have been duly authorized, executed and delivered by the other parties thereto, are valid and binding agreement obligations of each Subscriberthe Issuer, this Equity Support Agreement is and are enforceable against the Issuer it in accordance with its their terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, reorganization, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or and (ii) principles of equity, whether considered at law or equity.
(d) The execution, delivery and performance of this Subscription Agreement and the other Transaction Documents, including the issuance and sale by of the Issuer of all the Equity Support Acquired Shares pursuant to this Equity Support Agreement, and the performance consummation of its obligations hereunder the Transactions and under each Pledge Agreement and Control Agreement and the other transactions contemplated hereby and thereby, will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer or its subsidiaries is subject that would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreementsubject; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency agency, taxing authority or regulatory body, domestic or foreign, having jurisdiction over the Issuer or its subsidiaries or any of its properties that or their properties, that, in the case of clause (i) or (iii), would reasonably be expected to have a Material Adverse Effect or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreement.
(e) As of their respective filing dates, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunderEffect. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any of the SEC Reports.
(f) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the issuance of the Equity Support Shares pursuant to this Equity Support Agreement, other than (i) filings with the SEC, (ii) filings required by applicable state securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support Agreement; (iv) those required by The Nasdaq Stock Market LLC, including with respect to obtaining approval of the Issuer’s stockholders, and (v) those the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(g) As of the date hereof, the Issuer has not received any written communication from a governmental authority that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(h) Assuming the accuracy of each Subscriber’s representations and warranties set forth in Section 6 of this Equity Support Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Shares by the Issuer to each Subscribers.
(i) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Equity Support Shares.
(l) The Issuer is not, and the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the For purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.this
Appears in 1 contract
Samples: Subscription Agreement (Blackstone Holdings III L.P.)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers the Subscriber that:
(a) The Issuer has been duly incorporated and is an exempted company duly incorporated, validly existing and as a corporation in good standing under the laws of the Cayman Islands. The Issuer has all State of Delaware, with corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As of the Closing Date, all the Equity Support The Acquired Shares will be have been duly authorized by the Issuer and, when issued and delivered to each Subscriber against full payment therefor for the Acquired Shares in accordance with the terms of this Equity Support Subscription Agreement, the Equity Support Acquired Shares will be validly issued, fully paid and non-assessable assessable, free and clear of all liens or other restrictions except as otherwise stated herein and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum certificate of incorporation and articles of association bylaws (each, as in effect at such time of issuanceamended concurrently with the Closing) or under the Companies Act, as amended, laws of the Cayman IslandsState of Delaware or otherwise.
(c) This Equity Support Subscription Agreement, the Business Combination Agreement has and the Other Subscription Agreements (collectively, the “Transaction Documents”) have been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Agreement constitutes the Transaction Documents have been duly authorized, executed and delivered by the other parties thereto, are valid and binding agreement obligations of each Subscriberthe Issuer, this Equity Support Agreement is and are enforceable against the Issuer it in accordance with its their terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, reorganization, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or and (ii) principles of equity, whether considered at law or equity.
(d) The execution, delivery and performance of this Subscription Agreement and the other Transaction Documents, including the issuance and sale by of the Issuer of all the Equity Support Acquired Shares pursuant to this Equity Support Agreement, and the performance consummation of its obligations hereunder the Transactions and under each Pledge Agreement and Control Agreement and the other transactions contemplated hereby and thereby, will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreementsubject; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency agency, taxing authority or regulatory body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that properties, that, in the case of clause (i) or (iii), would reasonably be expected to have a Material Adverse Effect Effect. For purposes of this Subscription Agreement, a “Material Adverse Effect” means an event, change, development, occurrence, condition or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreement.
(e) As of their respective filing dates, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC effect with respect to any of the SEC Reports.
Issuer and its subsidiaries, taken together as a whole (f) The Issuer is not required to obtain any consenton a consolidated basis), waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the issuance of the Equity Support Shares pursuant to this Equity Support Agreement, other than (i) filings with the SEC, (ii) filings required by applicable state securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support Agreement; (iv) those required by The Nasdaq Stock Market LLC, including with respect to obtaining approval of the Issuer’s stockholders, and (v) those the failure of which to obtain would not be reasonably be expected to havethat, individually or in the aggregate, a Material Adverse Effect.
(g) As of the date hereof, the Issuer has not received any written communication from a governmental authority that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to havehave a material adverse effect on the business, properties, financial condition, stockholders’ equity or results of operations of the Issuer or Target or their respective subsidiaries individually or in taken as a whole and including the aggregatecombined company after giving effect to the Transactions, a Material Adverse Effect.
or materially affects the Issuer’s ability to consummate the (hi) Assuming transactions contemplated hereby, including the accuracy of each Subscriber’s representations and warranties set forth in Section 6 of this Equity Support Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer issuance and sale of the Equity Support Acquired Shares by the Issuer to each Subscribers.
(i) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Equity Support Shares.
(l) The Issuer is not, and the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debtsTransactions.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers the Investor that:
(a) The Issuer is an exempted company duly incorporated, validly existing and in good standing under the laws of the Cayman IslandsIslands (to the extent such concept exists in such jurisdiction). The Issuer has all power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, following the Domestication, Issuer will be duly incorporated, validly existing as a corporation and in good standing under the laws of the Cayman IslandsState of Delaware.
(b) As of the Closing Date, all the Equity Support Shares will be duly authorized and, when issued and delivered to each Subscriber the Investor against full payment therefor in accordance with the terms of this Equity Support Subscription Agreement, the Equity Support Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum and articles certificate of association incorporation (as in effect at such time of issuance) ), by contract or under the Companies Act, as amended, of the Cayman IslandsDelaware General Corporation Law.
(c) This Equity Support Subscription Agreement has been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Subscription Agreement constitutes the valid and binding agreement of each Subscriberthe Investor, this Equity Support Subscription Agreement is enforceable against the Issuer in accordance with its terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or (ii) principles of equity, whether considered at law or equity.
(d) The issuance execution and sale by the Issuer of all the Equity Support Shares pursuant to this Equity Support Agreementdelivery of, and the performance of its obligations hereunder and under each Pledge Agreement and Control Agreement and the transactions contemplated therebyby, this Subscription Agreement, including the issuance and sale by Issuer of the Shares pursuant to this Subscription Agreement will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Subscription Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have a Material Adverse Effect or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Subscription Agreement.
(e) As of their respective filing dates, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13July 24, 2021 2020 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Securities Act of 1933, as amended, (the “Securities Act”) and the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations of the SEC promulgated thereunder, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. The financial statements of Issuer included in the SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations of the SEC with respect thereto as in effect at the time of filing and fairly present in all material respects the financial position of Issuer as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, year-end audit adjustments. A copy of each SEC Report is available to the Investor via the SEC’s EXXXX system. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any of the SEC Reports.
(f) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the issuance of the Equity Support Shares pursuant to this Equity Support Subscription Agreement, other than (i) filings with the SEC, (ii) filings required by applicable state securities laws, (iii) the filings required in accordance with Section 16 13 of this Equity Support Subscription Agreement; (iv) those required by The Nasdaq Stock Market LLC, including with respect to obtaining approval of the Issuer’s stockholders, and (v) those the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(g) As of the date hereof, the Issuer has not received and, to Issuer’s knowledge, there is not threatened any written communication from a governmental authority that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. Issuer is in compliance with all applicable laws, except where such non-compliance would not reasonably be expected to have a Material Adverse Effect.
(h) Assuming the accuracy of each Subscriberthe Investor’s representations and warranties set forth in Section 6 of this Equity Support Subscription Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Shares by the Issuer to each Subscribersthe Investor.
(i) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following As of the date of this Subscription Agreement, the authorized capital stock of Issuer consists of (i) 500,000,000 Class A ordinary shares, (ii) 50,000,000 Class B ordinary shares and (iii) 5,000,000 preference shares, each with a par value of $0.0001 per share. As of the date of this Subscription Agreement, (A) 23,000,000 Class A ordinary shares of Issuer are issued and outstanding, (B) 5,750,000 Class B ordinary shares of Issuer are issued and outstanding, (C) 18,100,000 warrants to purchase Class A ordinary shares of Issuer are issued and outstanding, and (D) no preference shares are issued and outstanding. All
(1) issued and outstanding Class A ordinary shares and Class B ordinary shares of Issuer have been duly authorized and validly issued, are fully paid and are nonassessable and are not subject to preemptive rights and (2) outstanding warrants have been duly authorized and validly issued and are not subject to preemptive rights. Except as set forth above and pursuant to the Other Subscription Agreements, the Backstop Subscription Agreements, the Transaction ClosingAgreement and the other agreements and arrangements referred to therein or in the SEC Reports, as of the date hereof, there are no outstanding options, warrants or other rights to subscribe for, purchase or acquire from Issuer any Class A ordinary shares, Class B ordinary shares or other equity interests in Issuer, or securities convertible into or exchangeable or exercisable for such equity interests. As of the date hereof, Issuer has no subsidiaries, other than Merger Sub, and does not own, directly or indirectly, interests or investments (whether equity or debt) in any person, whether incorporated or unincorporated. There are no shareholder agreements, voting trusts or other agreements or understandings to which Issuer is a party or by which it is bound relating to the voting of any securities of Issuer, other than (1) as set forth in the SEC Reports and (2) as contemplated by the Transaction Agreement.
(k) As of the date hereof, the issued and outstanding Shares Class A ordinary shares of the Issuer will be are registered pursuant to Section 12(b) of the Exchange Act. Following the ClosingDomestication, the Equity Support Shares are expected to be registered under the Exchange Act. As of the date hereof, there is no suit, action, proceeding or investigation pending or, to the knowledge of Issuer, threatened against Issuer by Nasdaq or the SEC, respectively, to prohibit or terminate the listing of Issuer’s Shares on Nasdaq or to deregister the Shares under the Exchange Act. Issuer has taken no action that is designed to terminate the registration of the Shares under the Exchange Act.
(kl) The Issuer has not entered into any agreement or arrangement entitling any agent, broker, investment banker, financial advisor or other person to any broker’s or finder’s fee or any other commission or similar fee in connection with the transactions contemplated by this Subscription Agreement for which the undersigned could become liable. Other than the Placement Agents (as defined below), Issuer is not under aware of any obligation to pay any broker’s fee person that has been or commission will be paid (directly or indirectly) remuneration for solicitation of purchasers in connection with the sale of the Equity Support any Shares...
(lm) The Issuer is not, and immediately after receipt of payment for the Issuer after the consummation of the transaction contemplated hereby, Shares will not be required to register as be, an “investment company” as such term is defined in within the meaning of the Investment Company Act of 1940, as amended.
(mn) The Other than the Other Subscription Agreements, the Backstop Subscription Agreements, the Transaction Agreement and any other agreement contemplated by the Transaction Agreement, Issuer ishas not entered into any side letter or similar agreement with any Other Investor or any other investor in connection with such Other Investor’s or investor’s direct or indirect investment in Issuer (other than any side letter or similar agreement relating to the transfer to any investor of (i) securities of Issuer by existing securityholders of Issuer, which may be effectuated as a forfeiture to Issuer and reissuance, or (ii) securities to be issued to the direct or indirect securityholders of the Company pursuant to the Transaction Agreement). Each of the Backstop Subscription Agreement and the Other Subscription Agreements related to the private placement of the Shares reflect the same Per Share Subscription Price. None of the Backstop Subscription Agreement and Other Subscription Agreements includes terms and conditions that are materially more advantageous to any such other investor than the Investor hereunder, and the Issuer after the consummation Backstop Subscription Agreement and such Other Subscription Agreements will not, and as of the transaction contemplated hereby will beClosing Date, an “eligible contract participant” (as such term is defined have not been amended or modified in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, any material respect following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) date of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debtsthis Subscription Agreement.
(o) The Issuer acknowledges and agrees that, notwithstanding anything herein to the contrary, the Shares may be pledged by Investor in connection with a bona fide margin agreement, provided such pledge shall be (i) pursuant to an available exemption from the registration requirements of the Securities Act or (ii) pursuant to, and in accordance with, a registration statement that is effective under the Securities Act at the time of such pledge, and the Investor effecting a pledge of Shares shall not be required to provide Issuer with any notice thereof; provided, however, that neither Issuer, the SPACCompany or their respective counsels shall be required to take any action (or refrain from taking any action) in connection with any such pledge, Cartesian Capital Group, LLCother than providing any such lender of such margin agreement with an acknowledgment that the Shares are not subject to any contractual prohibition on pledging or lock up, the indirect controlling person form of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected acknowledgment to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected subject to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with comment by Issuer in all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15respects.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Samples: Subscription Agreement (ACE Convergence Acquisition Corp.)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers the Investor that:
(a) The Issuer is an exempted company duly incorporated, validly existing and in good standing under the laws of the Cayman IslandsIslands (to the extent such concept exists in such jurisdiction). The Issuer has all power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the each Closing Date, following the Domestication, Issuer will be duly incorporated, validly existing as a corporation and in good standing under the laws of the Cayman IslandsState of Delaware.
(b) As of the each Closing Date, all the Equity Support Shares will be duly authorized and, when issued and delivered to each Subscriber the Investor against full payment therefor in accordance with the terms of this Equity Support Subscription Agreement, the Equity Support Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum and articles certificate of association incorporation (as in effect at such time of issuance) or under the Companies Act, as amended, of the Cayman IslandsDelaware General Corporation Law.
(c) This Equity Support Subscription Agreement has been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Subscription Agreement constitutes the valid and binding agreement of each Subscriberthe Investor, this Equity Support Subscription Agreement is enforceable against the Issuer in accordance with its terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or (ii) principles of equity, whether considered at law or equity.
(d) The issuance and sale by the Issuer of all the Equity Support Shares pursuant to this Equity Support Agreement, and the performance of its obligations hereunder and under each Pledge Subscription Agreement and Control Agreement and the transactions contemplated thereby, will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Subscription Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have a Material Adverse Effect or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Subscription Agreement.
(e) As of their respective filing dates, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) SEC since January 13July 24, 2021 2020 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any of the SEC Reports.
(f) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the issuance of the Equity Support Shares pursuant to this Equity Support Subscription Agreement, other than (i) filings with the SEC, (ii) filings required by applicable state securities laws, (iii) the filings required in accordance with Section 16 13 of this Equity Support Subscription Agreement; , (iv) those required by The Nasdaq Stock Market LLC, including with respect to obtaining approval of the Issuer’s stockholders, and (v) those the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(g) As of the date hereof, the Issuer has not received any written communication from a governmental authority that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(h) Assuming the accuracy of each Subscriberthe Investor’s representations and warranties set forth in Section 6 of this Equity Support Subscription Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Shares by the Issuer to each Subscribersthe Investor.
(i) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following As of the Transaction Closingdate hereof, the issued and outstanding Shares Class A ordinary shares of the Issuer will be are registered pursuant to Section 12(b) of the Exchange Act. Following the ClosingDomestication, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Equity Support Shares.
(l) The Issuer is not, and Shares other than to the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” Placement Agents (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Actbelow).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Samples: Subscription Agreement (ACE Convergence Acquisition Corp.)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers that:
(a) a. The Issuer has been duly incorporated and is an exempted company duly incorporated, validly existing and as a corporation in good standing under the laws of the Cayman Islands. The Issuer has all State of Delaware, with corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As of the Closing Date, all the Equity Support b. The Acquired Shares will be have been duly authorized and, when issued and delivered to each Subscriber against full payment therefor for the Acquired Shares in accordance with the terms of this Equity Support Subscription Agreement, the Equity Support Acquired Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum certificate of incorporation and articles of association (as in effect at such time of issuance) bylaws or under the Companies Act, as amended, laws of the Cayman IslandsState of Delaware.
c. This Subscription Agreement, the Other Subscription Agreements and the Combination Agreement (ccollectively, the “Transaction Documents”) This Equity Support Agreement has have been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Agreement constitutes Issuer. The Transaction Documents constitute the valid and legally binding agreement obligation of each Subscriberthe Issuer, this Equity Support Agreement is enforceable against the Issuer in accordance with its their terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or generally and (ii) principles of equity, whether considered at law or equity.
(d) d. The issuance execution and sale delivery by the Issuer of all the Equity Support Shares pursuant to this Equity Support AgreementTransaction Documents, and the performance by the Issuer of its obligations hereunder under the Transaction Documents, including the issuance and under each Pledge Agreement and Control Agreement sale of the Acquired Shares and the consummation of the other transactions contemplated therebyherein and therein, do not and will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that subject, which would reasonably be expected to have have, individually or in the aggregate, a material adverse effect on the business, properties, prospects, financial condition condition, stockholders’ equity or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), ) or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under the terms of this Equity Support Subscription Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have have, individually or in the aggregate, a Material Adverse Effect or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Subscription Agreement.
e. There are no securities or instruments issued by or to which the Issuer is a party containing anti-dilution or similar provisions that will be triggered by the issuance of (ei) As of their respective filing datesthe Loans (as defined in Section 9(d)) or related warrants, all reports required (ii) the Acquired Shares or (iii) the Class A Shares to be filed by issued pursuant to any Other Subscription Agreement, in each case, that have not been or will not be validly waived on or prior to the Closing Date.
f. The Issuer is not in default or violation (and no event has occurred which, with notice or the lapse of time or both, would constitute a default or violation) of any term, condition or provision of (i) the organizational documents of the Issuer, (ii) any loan or credit agreement, guarantee, note, bond, mortgage, indenture, lease or other agreement, permit, franchise or license to which the Issuer with is now a party or by which the U.S. Securities and Exchange Commission Issuer’s properties or assets are bound or (the “SEC”iii) since January 13any statute or any judgment, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements order, rule or regulation of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereofany court or governmental agency or body, there are no material outstanding domestic or unresolved comments in comment letters received by foreign, having jurisdiction over the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to or any of its properties, except, in the SEC Reportscase of clauses (ii) and (iii), for defaults or violations that have not had and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(f) g. The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the execution, delivery and performance by the Issuer of this Subscription Agreement (including, without limitation, the issuance of the Equity Support Shares pursuant to this Equity Support AgreementAcquired Shares), other than (i) filings the filing with the SECSecurities and Exchange Commission (the “Commission”) of the Registration Statement (as defined below), (ii) filings required by applicable state or federal securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support Agreement; (iv) those required by The Nasdaq Stock Market LLC, including with respect to obtaining approval of the Issuer’s stockholders, and (v) those the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(g) As of the date hereof, the Issuer has not received any written communication from a governmental authority that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(h) Assuming the accuracy of each Subscriber’s representations and warranties set forth in Section 6 of this Equity Support Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Shares by the Issuer to each Subscribers.
(i) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Equity Support Shares.
(l) The Issuer is not, and the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.,
Appears in 1 contract
Samples: Subscription Agreement (Decarbonization Plus Acquisition Corp)
Issuer Representations and Warranties. The Issuer represents and warrants that (provided that no representation or warranty by Issuer shall apply to each Subscribers that:any statement or information in the reports filed by Issuer with the Commission (as defined below) since November 5, 2020 that relates to the topics referenced in the SEC Statement (as defined below), nor shall any correction, amendment or restatement of Issuer’s financial statements due wholly or in part to the SEC Statement or any other accounting matters, nor any other effects that relate to or arise out of, or are in connection with or in response to, any of the foregoing or any changes in accounting or disclosure related thereto, be deemed to be a breach of any representation or warranty by Issuer):
(a) The Issuer has been duly incorporated and is an exempted company duly incorporated, validly existing and as a corporation in good standing under the laws of the Cayman Islands. The Issuer has all State of Delaware, with corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and and, subject to obtaining all approvals necessary for the consummation of the Transactions (collectively, the “Required Approvals”), to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As of the Closing DateSubscription Closing, all the Equity Support Shares Securities will be have been duly authorized andby the Issuer. The Acquired Shares, when issued and delivered to each Subscriber against full payment therefor of the Purchase Price in accordance with the terms of this Equity Support AgreementSubscription Agreement and registered with the Transfer Agent, the Equity Support Acquired Shares will be validly issued, fully paid and non-assessable assessable[. The Warrants, when issued and delivered to Subscriber against full payment of the Purchase Price in accordance with the terms of this Subscription Agreement and the Warrant Agreement, will constitute the valid and binding obligations of the Issuer, enforceable against the Issuer in accordance with their terms, except as may be limited or otherwise affected by (i) the effect of bankruptcy, insolvency, reorganization, fraudulent transfer, moratorium or other similar laws relating to or affecting the rights and remedies of creditors; (ii) the effect of general principles of equity, whether considered in a proceeding in equity or at law (including the possible unavailability of specific performance or injunctive relief), concepts of materiality, reasonableness, good faith and fair dealing, and the discretion of the court before which a proceeding is brought. The Securities,]3 [and] when so issued and delivered, will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum certificate of incorporation and articles of association (as in effect at such time of issuance) bylaws or under the Companies Act, as amended, laws of the Cayman Islands.State of Delaware. [As of the Subscription Closing, the Issuer shall have reserved an amount of duly authorized Class A Shares that is equal to the number of Class A Shares issuable upon the exercise of the Closing Warrants. The Class A Shares issued to Subscriber upon the exercise of any Closing Warrant will be validly issued, fully paid and non-assessable.]4
(c) This Equity Support Subscription Agreement has been duly authorized, executed and delivered by the Issuer andand assuming the due authorization, assuming that this Equity Support Agreement constitutes execution and delivery of the valid and binding agreement of each same by the Subscriber, this Equity Support Agreement is enforceable against the Issuer it in accordance with its terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, reorganization, fraudulent conveyance, reorganizationarrangement, moratorium or other laws relating to or affecting the rights of creditors generally, or and (ii) principles of equity, whether considered at law or equity. 3 Only included for investors who are being issued Closing Warrants. 4 Only included for investors who are being issued Closing Warrants.
(d) The issuance Subject to obtaining the Required Approvals and sale assuming the accuracy of the Subscribers’ representations and warranties in Section 4, the execution, delivery and performance by the Issuer of all the Equity Support Shares pursuant to this Equity Support Subscription Agreement, including the issuance and sale of the performance of its obligations hereunder and under each Pledge Agreement and Control Agreement and the transactions contemplated therebySecurities, will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreementsubject; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that that, in the case of clauses (i) and (iii), would be reasonably be expected likely to have a Material Adverse Effect material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries taken as a whole or materially and adversely affect the validity of the Equity Support Shares Securities or the legal authority of the Issuer to comply perform in all material respects with its obligations under this Equity Support Agreementhereunder (an “Issuer Material Adverse Effect”).
(e) As of their respective filing dates, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any of the SEC Reports.
(f) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the execution, delivery and performance by the Issuer of this Subscription Agreement (including, without limitation, the issuance of the Equity Support Shares pursuant to this Equity Support AgreementSecurities), other than (i) filings with the SECSecurities and Exchange Commission (the “Commission”), (ii) in connection with or as a result of the “Staff Statement on Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies” issued by the Commission staff on April 12, 2021 or any subsequent guidance, statements or interpretations issued by the Commission or the Commission staff or otherwise relating thereto or to other accounting matters related to initial public offering securities or expenses (collectively, the “SEC Statement”), (iii) filings required by applicable state securities laws, (iiiiv) the filings required in accordance with Section 16 of this Equity Support AgreementRequired Approvals; (ivv) those required by The Nasdaq Stock Capital Market LLC(the “Nasdaq”) or other applicable stock exchange on which the Securities are then listed, including with respect to obtaining approval of the Issuer’s stockholders, and (vvi) those the failure of which to obtain would not be reasonably be expected likely to have, individually or in the aggregate, a an Issuer Material Adverse Effect.
(g) As of the date hereof, the Issuer has not received any written communication from a governmental authority that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(hf) Assuming the accuracy of each the Subscriber’s representations and warranties set forth in Section 6 4 of this Equity Support Subscription Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Shares Securities by the Issuer to each Subscribersthe Subscriber.
(ig) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares Securities by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(kh) The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Equity Support Securities other than to the Agents (as defined below).
(i) As of their respective filing dates or, if amended, as of the date of such amendment, which shall be deemed to supersede such original filing, all reports required to be filed by the Issuer with the Commission (the “SEC Reports”) complied in all material respects with the requirements of the Securities Act and the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations of the Commission promulgated thereunder, and none of the SEC Reports filed under the Securities Act and Exchange Act, contained, when filed or, if amended prior to the date of this Subscription Agreement, as of the date of such amendment with respect to those disclosures that are amended, which shall be deemed to supersede such original filing, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; provided, that notwithstanding anything to the contrary in this Subscription Agreement, no representation or warranty is made under this Subscription Agreement or otherwise as to the accounting treatment of the Issuer’s issued and outstanding warrants, other securities or any other initial public offering matter, or as to any deficiencies in disclosure (including with respect to accounting and disclosure controls) arising therefrom, in any SEC Reports. The financial statements of the Issuer included in the SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing, which shall be deemed to supersede such original filing, and fairly present in all material respects the financial position of the Issuer as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited financial statements, to normal, year-end audit adjustments. The Issuer has filed each periodic report that the Issuer was required to file with the Commission since February 18, 2021 and through the date hereof. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the Commission with respect to any of the SEC Reports.
(j) As of the date hereof, the authorized share capital of Issuer consists of 100,000,000 Class A Shares, 10,000,000 Class B common stock, par value $0.0001 per share (“Class B Shares”), and 1,000,000 shares of preferred stock, par value $0.0001 per share (“Preferred Shares”). As of the date hereof: (i) 34,500,000 Class A Shares, 8,625,000 Class B Shares and no Preferred Shares were issued and outstanding; and (ii) 8,625,000 public warrants, each exercisable to purchase one Class A Share at $11.50 per share (“Warrants”), were issued and outstanding, as well as 6,266,667 private warrants. No Warrants are exercisable on or prior to the Closing.
(k) As of the date hereof, the issued and outstanding Class A Shares of the Issuer are registered pursuant to Section 12(b) of the Exchange Act and are listed for trading on the Nasdaq under the symbol “SCLE” (it being understood that the trading symbol will be changed in connection with the Transactions). Except as disclosed in the SEC Reports, there is no suit, action, proceeding or investigation pending or, to the knowledge of the Issuer, threatened against the Issuer by Nasdaq or the Commission, respectively, to prohibit or terminate the listing of the Issuer’s shares on Nasdaq or to deregister the shares under the Exchange Act, excluding, for purposes of clarity, the customary ongoing review by the Nasdaq of the Issuer’s continued listing application in connection with the Transactions. The Issuer has taken no action that is designed to terminate the registration of the Issuer’s shares under the Exchange Act.
(l) The Issuer is in compliance with all applicable laws, except where such noncompliance would not reasonably be expected to have, individually or in the aggregate, an Issuer Material Adverse Effect. The Issuer has not received any written communication from a governmental entity alleging that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such noncompliance, default or violation would not, and the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined individually or in the Investment Company Act of 1940aggregate, as amendedreasonably be expected to have an Issuer Material Adverse Effect.
(m) The Except for such matters as would not reasonably be expected to have an Issuer isMaterial Adverse Effect, and the Issuer after the consummation has not received any written notice of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) issuit, action, proceeding or shall be, “insolvent” (as such term is defined arbitration before a governmental authority or arbitrator pending or threatened in Section 101(32) of writing against the Bankruptcy Code (Title 11 of the United States Code)) and Issuer or (ii) for the purposes judgment, decree, injunction, ruling or order of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly any governmental authority or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of arbitrator outstanding against the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted this representation and discussing, negotiating, and closing such a facility warranty shall not be a breach of this Section 5(o).
(p) As of apply to the date hereof, each of the Issuer and the Issuer Shareholder are not a party to extent any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred arise from or relate to the SEC Statement.
(n) [The Other Subscription Agreements reflect, with respect to the Class A Common Stock, a per Share purchase price and, if applicable, a proportion of Warrants relative to such Subscriber’s purchase of Acquired Shares, in each case that are not materially more favorable to similarly situated Other Investors thereunder than the terms of this Subscription Agreement, other than terms particular to the regulatory requirements of such Other Investor or its affiliates or related funds. For the avoidance of doubt, this Section 5(q3(n) above.shall not apply to (i) any document entered into in connection with the Insider PIPE Investment, (ii) any document entered into in connection with the Strategic Investor Investment or (iii) any document entered into with an Other Investor with respect to commercial or strategic arrangements not directly related to the purchase of the Securities.]5
Appears in 1 contract
Samples: Subscription Agreement (Broadscale Acquisition Corp.)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers the Investor that:
(a) The Issuer is an exempted company a corporation duly incorporated, validly existing and in good standing under the laws of the Cayman IslandsState of Delaware. The Issuer has all power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As of the Closing Date, all the Equity Support The Shares will be have been duly authorized and, when issued and delivered to each Subscriber the Investor against full payment therefor in accordance with the terms of this Equity Support Subscription Agreement, the Equity Support Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum and articles certificate of association incorporation (as in effect at such time of issuance) or under the Companies Act, as amended, of the Cayman IslandsDelaware General Corporation Law.
(c) This Equity Support Subscription Agreement has been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Subscription Agreement constitutes the valid and binding agreement of each Subscriberthe Investor, this Equity Support Subscription Agreement is enforceable against the Issuer in accordance with its terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or (ii) principles of equity, whether considered at law or equity.
(d) The issuance and sale by the Issuer of all the Equity Support Shares pursuant to this Equity Support Agreement, and the performance of its obligations hereunder and under each Pledge Agreement and Control Agreement and the transactions contemplated thereby, will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have a Material Adverse Effect or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreement.
(e) As of their respective filing dates, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any of the SEC Reports.
(f) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the issuance of the Equity Support Shares pursuant to this Equity Support Agreement, other than (i) filings with the SEC, (ii) filings required by applicable state securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support Agreement; (iv) those required by The Nasdaq Stock Market LLC, including with respect to obtaining approval of the Issuer’s stockholders, and (v) those the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(g) As of the date hereof, the Issuer has not received any written communication from a governmental authority that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(h) Assuming the accuracy of each Subscriberthe Investor’s representations and warranties set forth in Section 6 5 of this Equity Support Subscription Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Shares by the Issuer to each Subscribersthe Investor.
(i) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Equity Support Shares.
(l) The Issuer is not, and the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers thatthat as of the Closing Date:
(a) a. The Issuer has been duly incorporated and is an exempted company duly incorporated, validly existing and as a corporation in good standing under the laws of the Cayman Islands. The Issuer has all State of Delaware, with corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As of the Closing Date, all the Equity Support b. The Acquired Shares will be have been duly authorized and, when issued and delivered to each Subscriber against full payment therefor for the Acquired Shares in accordance with the terms of this Equity Support Subscription Agreement, the Equity Support Acquired Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum certificate of incorporation and articles of association (as in effect at such time of issuance) bylaws or under the Companies Act, as amended, laws of the Cayman IslandsState of Delaware.
c. This Subscription Agreement, the Other Subscription Agreements and the Combination Agreement (ccollectively, the “Transaction Documents”) This Equity Support Agreement has have been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Agreement constitutes the valid and binding agreement of each Subscriber, this Equity Support Agreement is are enforceable against the Issuer in accordance with its their respective terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or and (ii) principles of equity, whether considered at law or equity.
(d) d. The issuance execution and sale delivery by the Issuer of all the Equity Support Shares pursuant to this Equity Support AgreementTransaction Documents, and the performance by the Issuer of its obligations hereunder under the Transaction Documents, including the issuance and under each Pledge Agreement and Control Agreement sale of the Acquired Shares and the consummation of the other transactions contemplated therebyherein, do not and will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that subject, which would reasonably be expected to have have, individually or in the aggregate, a material adverse effect on the business, properties, financial condition condition, stockholders’ equity or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), ) or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under the terms of this Equity Support Subscription Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have have, individually or in the aggregate, a Material Adverse Effect or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Subscription Agreement.
e. There are no securities or instruments issued by or to which the Issuer is a party containing anti-dilution or similar provisions that will be triggered by the issuance of (ei) As of their respective filing dates, all reports required the Acquired Shares or (ii) the Class A Shares to be filed by issued pursuant to any Other Subscription Agreement, in each case, that have not been or will not be validly waived on or prior to the Closing Date.
f. The Issuer is not in default or violation (and no event has occurred which, with notice or the lapse of time or both, would constitute a default or violation) of any term, condition or provision of (i) the organizational documents of the Issuer, (ii) any loan or credit agreement, note, bond, mortgage, indenture, lease or other agreement, permit, franchise or license to which the Issuer with is now a party or by which the U.S. Securities and Exchange Commission Issuer’s properties or assets are bound or (the “SEC”iii) since January 13any statute or any judgment, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements order, rule or regulation of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereofany court or governmental agency or body, there are no material outstanding domestic or unresolved comments in comment letters received by foreign, having jurisdiction over the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to or any of its properties, except, in the SEC Reportscase of clauses (ii) and (iii), for defaults or violations that have not had and would not be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect.
(f) g. The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the execution, delivery and performance by the Issuer of this Subscription Agreement (including, without limitation, the issuance of the Equity Support Shares pursuant to this Equity Support AgreementAcquired Shares), other than (i) filings the filing with the SECSecurities and Exchange Commission (the “Commission”) of the Registration Statement (as defined below), (ii) filings required by applicable state or federal securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support Agreement; 9(n), (iv) those required by The Nasdaq the New York Stock Market LLCExchange (the “NYSE”), including with respect to obtaining approval of the Issuer’s stockholdersstockholder approval, and (v) those the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
h. The authorized capital stock of the Issuer consists of (gi) 1,000,000 shares of preferred stock, par value $0.0001 per share (“Preferred Stock”), (ii) 200,000,000 Class A Shares and (iii) 20,000,000 shares of Class B common stock, par value $0.0001 per share (“Class B Shares”). As of the date hereofhereof and as of immediately prior to the Closing: (i) no shares of Preferred Stock are issued and outstanding, (ii) 55,200,000 Class A Shares are issued and outstanding, (iii) 13,800,000 Class B Shares are issued and outstanding, and (iv) 27,760,000 warrants, each entitling the holder thereof to purchase one Class A Share at an exercise price of $11.50 per Class A Share, are outstanding.
i. The Issuer has not received any written communication communication, from a governmental authority entity that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not, individually or in the aggregate, be reasonably expected to have a Material Adverse Effect.
j. The issued and outstanding Class A Shares are registered pursuant to Section 12(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and are listed for trading on the NYSE. There is no suit, action, proceeding or investigation pending or, to the knowledge of the Issuer, threatened against the Issuer by the NYSE or the Commission with respect to any intention by such entity to deregister the Class A Shares or prohibit or terminate the listing of the Class A Shares on the NYSE. The Issuer has taken no action that is designed to terminate the registration of the Class A Shares under the Exchange Act.
k. Assuming the accuracy of Subscriber’s representations and warranties set forth in Section 4, no registration under the Securities Act is required for the offer and sale of the Acquired Shares by the Issuer to Subscriber in the manner contemplated by this Subscription Agreement.
l. Neither the Issuer nor any person acting on its behalf has engaged or will engage in any form of general solicitation or general advertising (within the meaning of Regulation D of the Securities Act) in connection with any offer or sale of the Acquired Shares.
m. The Issuer has not entered into any side letter or similar agreement with any Other Subscriber or any other investor in connection with such Other Subscriber’s or such other investor’s direct or indirect investment in the Issuer other than (i) the Combination Agreement and (ii) the Other Subscription Agreements; provided, no Other Subscription Agreement includes terms and conditions that are materially more advantageous to any such Other Subscriber than Subscriber hereunder. The Other Subscription Agreements have not been amended in any material respect following the date of this Subscription Agreement and reflect the same Share Purchase Price and terms that are no more favorable to any such Other Subscriber thereunder than the terms of this Subscription Agreement.
n. The Issuer has made available to Subscriber (including via the Commission’s XXXXX system) a copy of each form, report, statement, schedule, prospectus, proxy, registration statement and other document, if any, filed by the Issuer with the Commission since its initial registration of the Class A Shares (the “SEC Documents”), which SEC Documents, as of their respective filing dates, complied in all material respects with the requirements of the Exchange Act applicable to the SEC Documents and the rules and regulations of the Commission promulgated thereunder applicable to the SEC Documents. None of the SEC Documents filed under the Exchange Act (except to the extent that information contained in any SEC Document has been superseded by a later timely filed SEC Document) contained, when filed any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; provided, that, with respect to the proxy statement to be filed by the Issuer with respect to the Transaction or any of its affiliates included in any SEC Document or filed as an exhibit thereto, the representation and warranty in this sentence is made to the Issuer’s knowledge. The Issuer has timely filed each report, statement, schedule, prospectus, and registration statement that the Issuer was required to file with the Commission since its inception. There are no material outstanding or unresolved comments in comment letters from the Staff of the Commission with respect to any of the SEC Documents.
o. Except for such matters as have not had and would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, there is no (i) proceeding pending, or, to the knowledge of the Issuer, threatened against the Issuer or (ii) judgment, decree, injunction, ruling or order of any governmental entity or arbitrator outstanding against the Issuer.
p. Except for placement fees payable to Xxxxx and Company, LLC, Credit Suisse Securities (hUSA) Assuming the accuracy of each Subscriber’s representations LLC and warranties set forth Xxxxxxx Xxxxx & Co. LLC, in Section 6 of this Equity Support Agreement, no registration under the Securities Act of 1933, their capacity as amended (the “Securities Act”), is required placement agents for the offer and sale of the Equity Support Acquired Shares by (in such capacity, the “Placement Agents”), the Issuer to each Subscribers.
(i) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction Closingnot paid, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under obligated to pay, any obligation to pay any brokerbrokerage, finder’s or other commission or similar fee or commission in connection with the its issuance and sale of the Equity Support Acquired Shares.
(l) The Issuer is not, and the Issuer after the consummation of the transaction contemplated herebyincluding, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As any fee or commission payable to any stockholder or affiliate of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third partiesIssuer.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Samples: Subscription Agreement (Spartan Energy Acquisition Corp.)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers the Subscribers, as of the date of this Agreement and as of the Closing, that:
(a) The Issuer is an exempted company duly incorporated, validly existing and in good standing under the laws of the Cayman Islands. The Issuer has all power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Agreement. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing shares of Common Stock issuable upon conversion of the Convertible Notes issued at the Closing as of the Closing Date at the initial Conversion Rate (as defined under the laws Indenture)(including subject to limitations under the Pre-Approval Conversion Ratio)(the “Initial Underlying Shares”) have been, and following the Shareholder Approval, any additional Common Stock issuable upon conversion of the Cayman Islands.
Convertible Notes at the then-applicable Conversion Rate (bas defined under the Indenture) As (the “Additional Underlying Shares” and together with the Initial Underlying Shares, the “Underlying Shares”), and any shares of Common Stock issuable upon exercise of the Pre-Funded Warrants )(including subject to limitations on exercise for any Pre-Funded Warrants under the Pre-Approval Conversion Ratio) (the “Warrant Shares”) will be, duly authorized, and when issued on the Closing Date, all upon exercise of the Equity Support Shares will be duly authorized andPre-Funded Warrants, when issued and delivered to each Subscriber against full payment therefor in accordance with or upon conversion of the terms Convertible Notes, as the case may be, such shares of this Equity Support Agreement, the Equity Support Shares Common Stock will be validly issued, fully paid and non-assessable assessable, free and clear of any liens or other restrictions (other than those arising under the Voting Agreement and applicable securities laws) and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum and articles of association (as in effect at such time of issuance) or under the Companies ActGoverning Documents, as amended, of the Cayman Islands.
(c) This Equity Support Agreement has been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Agreement constitutes the valid and binding agreement of each Subscriber, this Equity Support Agreement is enforceable against the Issuer in accordance with its terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or (ii) principles of equity, whether considered at law or equity.
(d) The issuance and sale by the Issuer of all the Equity Support Shares pursuant to this Equity Support Agreement, and the performance of its obligations hereunder and under each Pledge Agreement and Control Agreement and the transactions contemplated thereby, will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument contract to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which it is bound, or under the Issuer or any laws of its subsidiaries is bound or to which any jurisdiction of the property or assets of the Issuer is subject that would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have a Material Adverse Effect or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreementincorporation.
(eb) As of their respective filing dates, all reports required to be filed by Assuming the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements accuracy of the Exchange Act representations and the rules and regulations warranties of the SEC promulgated thereunder. As Subscribers set forth in Section 4 of this Agreement, the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any of the SEC Reports.
(f) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization (including NYSE, as applicable) or other person in connection with the execution, delivery and performance of this Agreement and the Indenture, the issuance and sale of the Equity Support Shares pursuant to Convertible Notes and the compliance by the Issuer and the Guarantors with all of the provisions of this Equity Support AgreementAgreement and the Indenture and the consummation of the transactions contemplated herein and therein, other than (i) filings with the SEC, (ii) filings required by applicable state securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support Agreement; (ivii) those required by The Nasdaq Stock Market LLCthe SEC or NYSE (as applicable), including with respect to soliciting and obtaining approval stockholder approval, (iii) if applicable (including in connection with any conversion of Convertible Notes or the Issuer’s stockholdersexercise of any Warrants), requirements under the Hxxx-Xxxxx-Xxxxxx Antitrust Improvements Act of 1976, as amended, and (viv) those the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(g) As of the date hereof, the Issuer has not received any written communication from a governmental authority that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(hc) Assuming the accuracy of each Subscriber’s the Subscribers’ representations and warranties set forth in Section 6 4 of this Equity Support Agreement, (i) no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Shares Convertible Notes by the Issuer to each the Subscribers and the issuance of the Underlying Shares and/or Warrant Shares (if any) to the Subscribers, and the Convertible Notes and the Underlying Shares and/or Warrant Shares (if any) are not being offered in a manner involving a public offering under, or in a distribution in violation of, the Securities Act or any state securities laws, and (ii) it is not necessary to qualify the Indenture under the Trust Indenture Act of 1939, as amended (including the rules and regulations of the Commission promulgated thereunder).
(id) Neither the Issuer nor any person acting on its behalf has offered engaged or sold the Equity Support Shares by will engage in any form of general solicitation or general advertising in violation (within the meaning of Regulation D of the Securities Act) in connection with any offer or sale of the Convertible Notes.
(je) Following The Issuer has not entered into any agreement or arrangement entitling any agent, broker, investment banker, financial advisor or other person to any broker’s or finder’s fee or any other commission or similar fee in connection with the Transaction Closingtransactions contemplated by this Agreement for which any Subscriber could become liable. No broker or finder is entitled to any brokerage or finder’s fee or commission solely in connection with the sale of the Convertible Notes to the Subscribers. The Issuer agrees to indemnify and hold harmless each Subscriber from any claim or demand for commission or other compensation by any broker, finder, financial consultant or similar agent claiming to have been employed by or on behalf of Issuer and to bear the cost of legal expenses incurred by each Subscriber in defending against any such claim.
(f) As of their respective dates, all reports, proxies and other documents required to be filed by the Issuer with the SEC (such reports, the “SEC Reports”) complied in all material respects with the applicable requirements of the Securities Act and the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and the rules and regulations of the SEC promulgated thereunder, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. The financial statements of the Issuer included in the SEC Reports were prepared in accordance with generally accepted accounting principles in the United States, consistently applied, comply in all material respects with the rules and regulations of the SEC with respect thereto as in effect at the time of filing and fairly present in all material respects the financial position of the Issuer as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, year-end audit adjustments and the absence of certain footnotes and other presentation items as is permissible under generally accepted accounting principles. Except as disclosed in the SEC Reports, the Issuer timely filed each report, statement, schedule, prospectus, and registration statement that the Issuer was required to file with the SEC since December 31, 2018. A copy of each SEC Report is available to the Subscribers via the SEC’s EXXXX system. There are no outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any of the SEC Reports.
(g) As of the date hereof, the issued and outstanding Shares Common Stock of the Issuer are, and as of the Closing Date, the issued and outstanding Common Stock of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act, and listed for trading on the NYSE under the symbol “ICD” or on Nasdaq. Following There is no suit, action, proceeding or investigation pending or, to the Closingknowledge of the Issuer, threatened against the Equity Support Shares are expected Issuer by the NYSE or the SEC, respectively, to be registered prohibit or terminate the listing of the Common Stock on the NYSE or to deregister such shares under the Exchange Act.
(k) . The Issuer has taken no action that is not designed to terminate the registration of the Common Stock under any obligation to pay any broker’s fee the Exchange Act or commission the listing of the Common Stock on the NYSE, and is in connection compliance in all material respects with the sale continued listing requirements of the Equity Support Shares.
(l) NYSE. The Issuer is notwill be in compliance with the continued listing standards of the NYSE immediately after giving effect to the Closing, and the Issuer after the consummation issuance and performance of the transaction contemplated hereby, will Convertible Notes and Warrants do not be required to register as an “investment company” as such term is defined in require the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation approval of the transaction Company’s shareholders under The New York Stock Exchange Listed Company Manual except as expressly contemplated hereby will be, an “eligible contract participant” (as such term is defined in under Section 1a(18) 3.33 of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Indenture and Section 1a(18)(C) 3.3.6 of the Commodity Exchange Act)Warrant Agreement.
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Samples: Convertible Note Subscription Agreement (Independence Contract Drilling, Inc.)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers that:
(a) The Issuer has been duly incorporated and is validly existing as an exempted company duly incorporated, validly existing and in good standing under the laws of the Cayman Islands. The Subject to obtaining all required approvals necessary in connection with the performance of the Business Combination Agreement (including, without limitation, the approval of the Issuer’s shareholders) (collectively, the “Required Approvals”), the Issuer has all corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, the Issuer will be duly incorporated, incorporated and validly existing and as a corporation in good standing under the laws of the Cayman IslandsState of Delaware, with corporate power and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Subscription Agreement.
(b) As of the Closing Date, all the Equity Support Acquired Shares will be duly authorized and, when issued and delivered to each Subscriber against full payment therefor for the Acquired Shares in accordance with the terms of this Equity Support AgreementSubscription Agreement and registered with the Transfer Agent, the Equity Support Acquired Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum certificate of incorporation and articles of association (as in effect at such time of issuance) bylaws or under the Companies Act, as amended, of the Cayman IslandsDelaware General Corporation Law.
(c) This Equity Support Subscription Agreement has been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Subscription Agreement constitutes the valid and binding agreement of each Subscriber, this Equity Support Agreement is the valid and binding obligations of the Issuer, enforceable against the Issuer in accordance with its terms, except as may be limited or otherwise affected by (i) applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or and (ii) principles of equity, whether considered at law or equity.
(d) The Subject to obtaining the Required Approvals, the execution, delivery and performance of this Subscription Agreement (including compliance by the Issuer with all of the provisions hereof), issuance and sale by of the Issuer of all the Equity Support Shares pursuant to this Equity Support AgreementAcquired Shares, and the performance consummation of its obligations hereunder and under each Pledge Agreement and Control Agreement and the other transactions contemplated therebyherein, will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that subject, which would reasonably be expected to have a material adverse effect on the business, properties, financial condition condition, stockholders’ equity or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), ) or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under the terms of this Equity Support Subscription Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have a Material Adverse Effect or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Subscription Agreement.
(e) As of their respective filing datesOther than the Issuer’s Class F ordinary shares, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission par value $0.0001 per share (the “SECClass F Shares”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereof), there are no material outstanding securities or unresolved comments in comment letters received instruments issued by or to which the Issuer is a party containing anti-dilution or similar provisions that will be triggered by the Issuer from issuance of (i) the staff Acquired Shares or (ii) the shares to be issued pursuant to any Other Subscription Agreement that have not been or will not be validly waived on or prior to the Closing Date; provided that the holders of the Division of Corporation Finance of Class F Shares will waive any such anti-dilution or similar provisions in connection with the SEC with respect to any of the SEC ReportsTransactions.
(f) The Issuer is not in default or violation (and no event has occurred which, with notice or the lapse of time or both, would constitute a default or violation) of any term, condition or provision of (i) the organizational documents of the Issuer, (ii) any loan or credit agreement, note, bond, mortgage, indenture, lease or other agreement, permit, franchise or license to which the Issuer is now a party or by which the Issuer’s properties or assets are bound or (iii) any statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties, except, in the case of clauses (ii) and (iii), for defaults or violations that have not had and would not be reasonably likely to have, individually or in the aggregate, a Material Adverse Effect.
(g) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the execution, delivery and performance by the Issuer of this Subscription Agreement (including, without limitation, the issuance of the Equity Support Shares pursuant to this Equity Support AgreementAcquired Shares), other than (i) filings with the SECSecurities and Exchange Commission (the “Commission”), (ii) filings required by applicable state securities laws, (iii) the iii)the filings required in accordance with Section 16 9(n) of this Equity Support Subscription Agreement; (iv) those required by The the Nasdaq Stock Capital Market LLC(“Nasdaq”), including with respect to obtaining approval of the Issuer’s stockholdersshareholder approval, and (v) those the failure of which to obtain would not be reasonably be expected likely to have, individually or in the aggregate, a Material Adverse Effect.
(gh) As of the date hereofof this Subscription Agreement, the authorized capital stock of the Issuer consists of (i) 5,000,000 preferred shares, par value $0.0001 per share (“Preferred Shares”), (ii) 500,000,000 Class A ordinary shares, par value $0.0001 per share, and (iii) 20,000,000 Class F Shares. As of the date hereof: (i) no shares of Preferred Stock are issued and outstanding, (ii) 25,000,000 Class A ordinary shares, par value $0.0001 per share, are issued and outstanding, (iii) 6,243,480 Class F Shares are issued and outstanding and (iv) warrants to purchase 19,500,000 Common Shares are outstanding.
(i) The Issuer has not received any written communication from a governmental authority entity that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to havenot, individually or in the aggregate, be reasonably likely to have a Material Adverse Effect.
(hj) The issued and outstanding Class A ordinary shares are registered pursuant to Section 12(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and are listed for trading on Nasdaq under the symbol “SCAC”. There is no suit, action, proceeding or investigation pending or, to the knowledge of the Issuer, threatened against the Issuer by Nasdaq or the Commission with respect to any intention by such entity to deregister the Class A ordinary shares or prohibit or terminate the listing of the Class A ordinary shares on Nasdaq. The Issuer has taken no action that is designed to terminate the registration of the Common Shares under the Exchange Act.
(k) Assuming the accuracy of each Subscriber’s representations and warranties set forth in Section 6 4 of this Equity Support Subscription Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Acquired Shares by the Issuer to each SubscribersSubscriber.
(il) Neither the Issuer nor any person anyone acting on its behalf has offered the Common Shares or sold any similar securities for sale to, or solicited any offer to buy any of the Equity Support same from, or otherwise approached or negotiated in respect thereof with, any person other than Subscriber and other Institutional Accredited Investors, each of which has been offered Common Shares by any form of general solicitation at a private sale for investment. “Institutional Accredited Investor” means an institutional accredited investor as defined in Rule 501(a)(1), (2), (3) or general advertising in violation of (7) under the Securities Act.
(j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Equity Support Shares.
(l) The Issuer is not, and the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Samples: Subscription Agreement (Saban Capital Acquisition Corp.)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers that:
(a) The Issuer a. it is an exempted company duly incorporatedorganized, validly existing and in good standing under in the laws of state in which it is incorporated with the Cayman Islands. The Issuer has all power (corporate or otherwise) and authority to own, lease and operate own its properties and to conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Agreement. As of described in the Closing Date, the Issuer will be duly incorporated, validly existing and Information;
b. it is in good standing under in each other jurisdiction in which the laws conduct of the Cayman Islands.
(b) As its business or ownership or leasing of the Closing Date, all the Equity Support Shares will its properties requires it to be duly authorized and, when issued and delivered to each Subscriber against full payment therefor in accordance with the terms of this Equity Support Agreement, the Equity Support Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of so qualified or subject to any preemptive or similar rights created under the Issuer’s memorandum and articles of association (as in effect at such time of issuance) or under the Companies Act, as amended, of the Cayman Islands.
(c) This Equity Support Agreement has been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Agreement constitutes the valid and binding agreement of each Subscriber, this Equity Support Agreement is enforceable against the Issuer in accordance with its termslicensed, except as may whether the failure to be limited so qualified or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or (ii) principles of equity, whether considered at law or equity.
(d) The issuance and sale by the Issuer of all the Equity Support Shares pursuant to this Equity Support Agreement, and the performance of its obligations hereunder and under each Pledge Agreement and Control Agreement and the transactions contemplated thereby, will licensed would not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that would reasonably be expected to have a material adverse effect on the business, properties, assets, condition (financial condition or results of operations otherwise) or prospects of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”)whole;
c. the Information does not and will not contain any untrue statement or omit to state any fact required to be stated or necessary to make the statements in the Information not misleading;
d. this Agreement has been duly authorized, or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreement; (ii) result in any violation of the provisions of the organizational documents executed, and delivered on behalf of the Issuer; or (iii) result in any violation of any law, statute or any judgmentand is the valid, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have a Material Adverse Effect or materially affect the validity binding and obligation of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreement.
(e) As of their respective filing datesIssuer, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any of the SEC Reports.
(f) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the issuance of the Equity Support Shares pursuant to this Equity Support Agreement, other than (i) filings with the SEC, (ii) filings required by applicable state securities laws, (iii) the filings required enforceable in accordance with Section 16 its terms;
e. no authorization, approval, consent, or license of this Equity Support Agreement; (iv) those any regulatory body or authority is required by The Nasdaq Stock Market LLCfor the valid authorization, including with respect to obtaining approval sale or delivery of the Issuer’s stockholdersSecurities, or, if so required, all authorizations, approvals, consents and (v) those licenses have been or will be obtained and will remain in full force and effect;
f. the failure of which Securities subject to obtain would not be reasonably be expected to havethe Offering will, individually or when issued, sold and delivered in accordance with the aggregate, a Material Adverse Effect.
(g) As terms of the date hereofOffering, be duly and validly issued, fully paid and nonassessable and free of restrictions on transfer other than restrictions on transfer under agreements with the Investors purchasing such Securities and applicable state and federal securities laws;
g. if conducted in accordance with the terms of the Memorandum and this Agreemnt, the Issuer has not received any written communication Offering will be exempt from a governmental authority that alleges that the Issuer is not in compliance with or is in default or violation registration requirements of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(h) Assuming the accuracy of each Subscriber’s representations and warranties set forth in Section 6 of this Equity Support Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Shares by the Issuer to each Subscribers.
(i) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Equity Support Shares.
(l) The Issuer is notamended, and the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, rules and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment regulations promulgated thereunder and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined applicable state requirements and be in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent compliance with all investment policies, guidelines applicable rules and other restrictions regulations under the Federal and any applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15State securities laws.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Samples: Private Placement Distribution Agreement (Unation, LLC)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers that:the Investor, as of the date hereof, that (provided that no representation or warranty by Issuer shall apply to any statement or information in the SEC Reports (as defined below) that relates to the topics referenced in the SEC Guidance (as defined below), nor shall any correction, amendment or restatement of Issuer’s financial statements due wholly or in part to the SEC Guidance or any other accounting matters, nor any other effects that relate to or arise out of, or are in connection with or in response to, any of the foregoing or any changes in accounting or disclosure related thereto, be deemed to be a breach of any representation or warranty by Issuer):
(a) The As of the date hereof and prior to the Domestication, Issuer is an exempted company limited by shares duly incorporated, validly existing and in good standing under the laws of the Cayman IslandsIslands (to the extent such concept exists in such jurisdiction). The Issuer has all power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, following the Domestication, Issuer will be duly incorporated, validly existing as a company and in good standing under Jersey Companies Law (to the laws of the Cayman Islandsextent such concept exists in such jurisdiction), with all power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Subscription Agreement.
(b) As of the Closing Date, all the Equity Support Shares will be duly authorized and, when issued and delivered to each Subscriber the Investor against full payment therefor in accordance with the terms of this Equity Support Subscription Agreement, the Equity Support Shares will be validly authorized and issued, fully paid and non-assessable assessable, and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum and articles of association organizational documents (as in effect at such time of issuance) or under the Jersey Companies Act, as amended, of the Cayman IslandsLaw.
(c) This Equity Support Subscription Agreement has been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Subscription Agreement constitutes the valid and binding agreement of each Subscriberthe Investor, this Equity Support Subscription Agreement is enforceable against the Issuer in accordance with its terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or (ii) principles of equity, whether considered at law or equity.
(d) The Assuming the accuracy of the Investor’s representations and warranties in Section 6, the issuance and sale by the Issuer of all the Equity Support Shares pursuant to this Equity Support Agreement, and the performance of its obligations hereunder and under each Pledge Subscription Agreement and Control Agreement and the transactions contemplated thereby, will not (i) conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that would reasonably be expected to have a material adverse effect on the business, financial condition or results ability of operations Issuer to consummate the issuance and sale of the Shares (an “Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have a an Issuer Material Adverse Effect or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support AgreementEffect.
(e) As of their respective filing dates, or, if amended, as of the date of such amendment, which shall be deemed to supersede such original filing, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (and the reports, the “SEC Reports”) complied in all material respects with the applicable requirements of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations of the SEC promulgated thereunder. As thereunder as of the date hereofof such filing (as amended, there as applicable). None of the SEC Reports filed under the Exchange Act included, when filed or, if amended, as of the date of such amendment, which shall be deemed to supersede such original filing, any untrue statement of a material fact or omitted to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided, that the Issuer makes no such representation or warranty with respect to any registration statement or any proxy statement/prospectus to be filed by the Issuer with respect to the Transaction or any other information relating to Obagi, Milk or any of their respective affiliates included in any SEC Report or filed as an exhibit thereto. There are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any of the SEC Reports. Notwithstanding the foregoing, this representation and warranty shall not apply to any statement or information in the SEC Reports that relates to changes to historical accounting policies of Issuer in connection with any order, directive, guideline, comment or recommendation from the SEC that is applicable to Issuer or the Issuer’s auditor or accountant (collectively, the “SEC Guidance”), nor shall any correction, amendment or restatement of Issuer’s financial statements due to the SEC Guidance result in a breach of any representation or warranty by Issuer.
(f) The Assuming the accuracy of the Investor’s representations and warranties set forth in Section 6 of this Subscription Agreement, Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the issuance of the Equity Support Shares pursuant to this Equity Support Subscription Agreement, other than (i) filings with the SEC, (ii) in connection with or as a result of the SEC Guidance, (iii) filings required by applicable state securities laws, (iiiiv) the filings required in accordance with Section 16 13 of this Equity Support Subscription Agreement; (ivv) those required by The Nasdaq Stock Market LLCLLC (“Nasdaq”), as applicable, including with respect to obtaining approval of the Issuer’s stockholders, and (vvi) those the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a an Issuer Material Adverse Effect.
(g) As of the date hereof, the authorized share capital of Issuer consists of 500,000,000 Class A ordinary shares, par value $0.0001 per share (“Class A Shares”), 50,000,000 Class B ordinary shares, par value $0.0001 per share (“Class B Shares”), and 5,000,000 preference shares, par value $0.0001 per share (“Preferred Shares”). As of the date hereof: (i) 34,500,000 Class A Shares (including those underlying Issuer’s units), 8,625,000 Class B Shares and no Preferred Shares were issued and outstanding; and (ii) 17,433,333 warrants, each exercisable to purchase one (1) Class A Share at $11.50 per share (“Warrants”), were issued and outstanding, including 11,500,000 public warrants (including those underlying Issuer’s units) and 5,933,333 private placement warrants. No Warrants are exercisable on or prior to the Closing.
(h) The Issuer is in compliance with all applicable laws, except where such non-compliance would not reasonably be expected to have an Issuer Material Adverse Effect. As of the date hereof, Issuer has not received any written communication from a governmental authority that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to have, individually or in the aggregate, a an Issuer Material Adverse Effect. For the avoidance of doubt, this representation and warranty shall not apply to the extent any of the foregoing matters or communications arise from or relate to the SEC Guidance and, in such case, such matters or communications shall not constitute a breach of any representation or warranty by Issuer.
(hi) Assuming the accuracy of each Subscriberthe Investor’s representations and warranties set forth in Section 6 of this Equity Support Subscription Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Shares by the Issuer to each Subscribersthe Investor.
(ij) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(jk) Following As of the Transaction Closingdate hereof, the issued and outstanding Class A Shares of the Issuer will be are registered pursuant to Section 12(b) of the Exchange ActAct and are listed for trading on Nasdaq or such other applicable stock exchange on which Issuer’s or its successor’s common stock is then listed. Following There is no suit, action, proceeding or investigation pending or, to the Closingknowledge of Issuer, threatened against Issuer by Nasdaq or such other applicable stock exchange on which Issuer’s or its successor’s common stock is then listed or the SEC with respect to any intention by such entity to deregister the Shares or prohibit or terminate the listing of the Shares on Nasdaq or such other applicable stock exchange on which Issuer’s or its successor’s common stock is then listed, excluding, for the purposes of clarity, the Equity Support customary ongoing review by Nasdaq or such other applicable stock exchange on which Issuer’s or its successor’s common stock is then listed in connection with the Transaction, Issuer has taken no action that is designed to terminate the registration of its Class A Shares are expected to be registered under the Exchange Act.
(kl) Concurrently with the execution and delivery of this Agreement, Issuer is entering into the Other Subscription Agreements providing for the sale of an aggregate of 10,500,000 Shares for an aggregate purchase price of $105,000,000 (including the Shares purchased and sold under this Subscription Agreement). The Other Subscription Agreements reflect the same purchase price and other terms with respect to the purchase of the Shares that are no more favorable to such Other Purchasers than the terms of this Subscription Agreement and they shall not be amended after the date hereof to provide for terms with respect to the purchase of the Shares that are more favorable to such Other Investors than the terms of this Subscription Agreement, unless such terms are also offered to the Investor.
(m) Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Equity Support Shares.
(l) The Issuer is not, and the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Samples: Subscription Agreement (Waldencast Acquisition Corp.)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers that:
(a) a. The Issuer has been duly incorporated and is an exempted company duly incorporated, validly existing and as a corporation in good standing under the laws of the Cayman Islands. The Issuer has all State of Delaware, with corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As of the Closing Date, all the Equity Support b. The Acquired Shares will be have been duly authorized and, when issued and delivered to each Subscriber against full payment therefor for the Acquired Shares in accordance with the terms of this Equity Support AgreementSubscription Agreement and registered with the Issuer’s transfer agent, the Equity Support Acquired Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum certificate of incorporation and articles of association (as in effect at such time of issuance) bylaws or under the Companies Act, as amended, laws of the Cayman IslandsState of Delaware.
c. This Subscription Agreement and the Other Subscription Agreements have been, and the BCA after the approval of the stockholders of Issuer will be, duly authorized. The Subscription Agreement, the Other Subscription Agreements, and the BCA (ccollectively, the “Transaction Documents”) This Equity Support Agreement has have been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Agreement constitutes the valid and binding agreement of each Subscriber, this Equity Support Agreement is are enforceable against the Issuer in accordance with its their respective terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, fraudulent transfer, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or and (ii) principles of equity, whether considered at law or equity.
(d) d. The issuance execution and sale delivery by the Issuer of all the Equity Support Shares pursuant to this Equity Support AgreementTransaction Documents, and the performance by the Issuer of its obligations hereunder under the Transaction Documents, including the issuance and under each Pledge Agreement and Control Agreement sale of the Acquired Shares and the consummation of the other transactions contemplated therebyherein, do not and will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that subject, which would reasonably be expected to have have, individually or in the aggregate, a material adverse effect on the business, properties, financial condition condition, stockholders’ equity or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), ) or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under the terms of this Equity Support Subscription Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in subject to obtaining approval of the stockholders of Issuer , any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have have, individually or in the aggregate, a Material Adverse Effect or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Subscription Agreement.
e. There are no securities or instruments issued by or to which the Issuer is a party containing anti-dilution or similar provisions that will be triggered by the issuance of (ei) As of their respective filing dates, all reports required the Acquired Shares or (ii) the Shares to be filed by issued pursuant to any Other Subscription Agreement, in each case, that have not been or will not be validly waived on or prior to the Closing Date.
f. The Issuer is not in default or violation (and no event has occurred which, with notice or the lapse of time or both, would constitute a default or violation) of any term, condition or provision of (i) the organizational documents of the Issuer, (ii) any loan or credit agreement, note, bond, mortgage, indenture, lease or other agreement, permit, franchise or license to which the Issuer with is now a party or by which the U.S. Securities and Exchange Commission Issuer’s properties or assets are bound or (the “SEC”iii) since January 13any statute or any judgment, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements order, rule or regulation of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereofany court or governmental agency or body, there are no material outstanding domestic or unresolved comments in comment letters received by foreign, having jurisdiction over the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to or any of its properties, except, in the SEC Reportscase of clauses (ii) and (iii), for defaults or violations that have not had and would not be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect.
(f) g. The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the execution, delivery and performance by the Issuer of this Subscription Agreement (including, without limitation, the issuance of the Equity Support Shares pursuant to this Equity Support AgreementAcquired Shares), other than (i) filings the filing with the SEC, Securities and Exchange Commission (the “Commission”) of a registration statement registering the resale of the Acquired Shares; (ii) if necessary or appropriate, the approval of the Issuer’s stockholders of an increase in the authorized shares of the Issuer’s common stock and the filing of an amended and restated certificate of incorporation authorizing a sufficient number of authorized shares of Issuer’s common stock to issue the Acquired Shares and the Shares purchased by the Other Subscribers pursuant to the Other Subscription Agreements; (iii) filings required by applicable state or federal securities laws, ; (iiiiv) the filings required in accordance with Section 16 of this Equity Support Agreement9(n); (ivv) those required by The the Nasdaq Stock Capital Market LLC(“NASDAQ”), including with respect to obtaining approval of the Issuer’s stockholders, stockholder approval; and (vvi) those consents, waivers, authorizations, orders, notices, filing, or registrations the failure of which to make or obtain would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse EffectEffect or materially affect the validity of the Acquired Shares or the legal authority of the Issuer to comply in all material respects with this Subscription Agreement.
(g) As h. The Acquired Shares are not, and following the Closing and the closing of the date hereofTransaction will not be, subject to any Transfer Restriction. The term “Transfer Restriction” means any condition to or restriction on the Issuer has not received ability of the undersigned to pledge, sell, assign or otherwise transfer the Acquired Shares under any written communication from a governmental authority that alleges that organizational document, policy or agreement of, by or with the Issuer is not in compliance with or is in default or violation of any applicable lawIssuer, except where such non-compliance, default or violation would not reasonably be expected to have, individually or in but excluding (i) the aggregate, a Material Adverse Effect.
(h) Assuming the accuracy of each Subscriber’s representations and warranties set forth restrictions on transfer described in Section 6 4(e) of this Equity Support Agreement, no Subscription Agreement with respect to the status of the Acquired Shares as “restricted securities” pending their registration for resale under the Securities Act of 1933, in accordance with the Registration Rights (as amended (the “Securities Act”defined below), is required for the offer and sale of the Equity Support Shares by the Issuer to each Subscribers.
(i) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Equity Support Shares.
(l) The Issuer is not, and the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(orestrictions on transfer described in Section 6(b) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o)Subscription Agreement.
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers Subscriber that:
(a) The Issuer has been duly incorporated and is an exempted company duly incorporated, validly existing and as a corporation in good standing under the laws of the Cayman Islands. The Issuer has all State of Delaware, with corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As of the Closing Date, all the Equity Support The Acquired Shares will be have been duly authorized by the Issuer and, when issued and delivered to each Subscriber against full payment therefor for the Acquired Shares in accordance with the terms of this Equity Support AgreementSubscription Agreement and registered with the Issuer’s transfer agent, the Equity Support Acquired Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum certificate of incorporation and articles of association (as in effect at such time of issuance) bylaws or under the Companies Act, as amended, laws of the Cayman IslandsState of Delaware or pursuant to any agreement or other instrument to which the Issuer is a party or by which it is otherwise bound.
(c) This Equity Support Subscription Agreement, the Other Subscription Agreements, the subscription agreements related to the Key Anchor Investment and the Merger Agreement has (collectively, the “Transaction Documents”) have been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Agreement constitutes the valid and binding agreement of each Subscriber, this Equity Support Agreement is are enforceable against the Issuer in accordance with its their respective terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or and (ii) principles of equity, whether considered at law or equity.
(d) The issuance execution and sale delivery by the Issuer of all the Equity Support Shares pursuant to this Equity Support AgreementTransaction Documents, and the performance by the Issuer of its obligations hereunder under the Transaction Documents, including the issuance and under each Pledge Agreement sale of the Acquired Shares and Control the compliance by the Issuer with all of the provisions of this Subscription Agreement and the consummation of the transactions herein will be done in accordance with The Nasdaq Stock Market LLC (the “Nasdaq”) marketplace rules or the rules of such other applicable stock exchange on which the Issuer’s or its successor’s common stock is then listed, and the consummation of the other transactions contemplated therebyherein, do not and will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreementsubject; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that that, in the cases of clauses (i) and (iii), would reasonably be expected to have have, individually or in the aggregate, a material adverse effect on the business, properties, financial condition, stockholders’ equity or results of operations of the Issuer (a “Material Adverse Effect Effect”) or materially affect the validity or enforceability of the Equity Support Acquired Shares or the ability or legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Subscription Agreement.
(e) As of their respective filing dates, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any of the SEC Reports.
(f) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the execution, delivery and performance by the Issuer of this Subscription Agreement (including, without limitation, the issuance of the Equity Support Shares pursuant to this Equity Support AgreementAcquired Shares), other than (i) filings the filing with the SECUnited States Securities and Exchange Commission (the “Commission”) of the Registration Statement (as defined below), (ii) the filings required by applicable state or federal securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support Agreement; 10(m), (iv) those required by The the Nasdaq Stock Market LLCor such other applicable stock exchange on which the Issuer’s common stock is then listed, including with respect to obtaining approval of the Issuer’s stockholdersstockholder approval, and (v) those any consent, waiver, authorization or order of, notice to, or filing or registration, the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(gf) As The issued and outstanding Class A Shares are registered pursuant to Section 12(b) of the date hereofSecurities Exchange Act of 1934, as amended (the “Exchange Act”), and are listed for trading on the Nasdaq or such other applicable stock exchange on which the Issuer’s or its successor’s common stock is listed. There is no suit, action, proceeding or investigation pending or, to the knowledge of the Issuer, threatened against the Issuer by the Nasdaq or the Commission with respect to any intention by such entity to deregister the Class A Shares or prohibit or terminate the listing of the Class A Shares on the Nasdaq. The Issuer has not received any written communication from a governmental authority taken no action that alleges that is designed to terminate the Issuer is not in compliance with registration of the Class A Shares under the Exchange Act or the listing of the Class A Shares on the Nasdaq (unless such termination on the Nasdaq is in default order to switch the listing to the New York Stock Exchange or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to have, individually or provide for a successor listing in connection with the aggregate, a Material Adverse EffectTransaction).
(hg) Assuming the accuracy of each Subscriber’s representations and warranties set forth in Section 6 of this Equity Support Agreement4, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Acquired Shares by the Issuer to each SubscribersSubscriber in the manner contemplated by this Subscription Agreement.
(ih) Neither the Issuer nor any person acting on its behalf has offered engaged or sold the Equity Support Shares by will engage in any form of general solicitation or general advertising in violation (within the meaning of Regulation D of the Securities Act) in connection with any offer or sale of the Acquired Shares.
(i) The Issuer has made available to Subscriber (including via the Commission’s XXXXX system) a copy of each form, report, statement, schedule, prospectus, proxy, registration statement and other document, if any, filed by the Issuer with the Commission since its initial registration of the Class A Shares (the “SEC Documents”), which SEC Documents, as of their respective filing dates, complied in all material respects with the requirements of the Exchange Act or the Securities Act applicable to the SEC Documents and the rules and regulations of the Commission promulgated thereunder applicable to the SEC Documents. None of the SEC Documents filed under the Exchange Act or the Securities Act (except to the extent that information contained in any SEC Document has been superseded by a later timely filed SEC Document) contained, when filed any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. The Issuer has timely filed each report, statement, schedule, prospectus, and registration statement that the Issuer was required to file with the Commission since its inception. There are no material outstanding or unresolved comments in comment letters from the Staff of the Commission with respect to any of the SEC Documents. The financial statements of the Issuer included in the SEC Documents comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing and fairly present in all material respects the financial position of the Issuer as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, year-end audit adjustments.
(j) Following the Transaction ClosingThe Issuer has not paid, the issued and outstanding Shares is not obligated to pay, any brokerage, finder’s or other commission or similar fee in connection with its issuance and sale of the Issuer will be registered pursuant Acquired Shares, including, for the avoidance of doubt, any fee or commission payable to Section 12(b) any stockholder or affiliate, as defined in Rule 144 under the Securities Act (“Affiliate”), of the Exchange ActIssuer. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange ActSubscriber shall have no liability for any such commission or fee.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission No “bad actor” disqualifying event described in connection with the sale Rule 506(d)(1)(i)-(viii) of the Equity Support Shares.
Securities Act (la “Disqualification Event”) The Issuer is not, and applicable to the Issuer after or, to the consummation of Issuer’s knowledge, any Issuer Covered Person, except for a Disqualification Event as to which Rule 506(d)(2)(ii-iv) or (d)(3), is applicable. “Issuer Covered Person” means, with respect to the transaction contemplated hereby, will not be required to register Issuer as an “investment companyissuer” as such term is defined for purposes of Rule 506 promulgated under the Securities Act, any person listed in the Investment Company Act first paragraph of 1940, as amended.
(m) Rule 506(d)(1). The Issuer is, and represents that it has exercised reasonable care to determine the accuracy of the representation made by the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act)this paragraph.
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Samples: Backstop Subscription Agreement (BowX Acquisition Corp.)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers thatthat as of the Closing Date:
(a) a. The Issuer is an exempted company duly incorporated, validly existing and in good standing under the laws of the Cayman Islands. As of the Closing Date, following the Domestication, the Issuer will be duly incorporated, validly existing as a corporation and in good standing under the laws of the State of Delaware. The Issuer has all corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. .
b. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As of the Closing Date, all the Equity Support Acquired Shares will be have been duly authorized and, when issued and delivered to each Subscriber against full payment therefor for the Acquired Shares in accordance with the terms of this Equity Support Subscription Agreement, the Equity Support Acquired Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum and articles of association organizational documents (as in effect at such time of issuance) or under the Companies Act, as amended, laws of the Cayman IslandsIslands or laws of the State of Delaware, as the case may be.
c. This Subscription Agreement, the Other Subscription Agreements and the Combination Agreement (ccollectively, the “Transaction Documents”) This Equity Support Agreement has have been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Agreement constitutes the valid and binding agreement of each Subscriber, this Equity Support Agreement is are enforceable against the Issuer in accordance with its their respective terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or generally and (ii) principles of equity, whether considered at law or equity.
(d) The issuance d. Assuming the accuracy of Subscriber’s representations and sale warranties in Section 4, the execution and delivery by the Issuer of all the Equity Support Shares pursuant to this Equity Support AgreementTransaction Documents, and the performance by the Issuer of its obligations hereunder under the Transaction Documents, including the issuance and under each Pledge Agreement and Control Agreement sale of the Acquired Shares and the consummation of the other transactions contemplated therebyherein, do not and will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that subject, which would be reasonably be expected to have have, individually or in the aggregate, a material adverse effect on the business, properties, financial condition condition, shareholders’ equity or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), ) or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under the terms of this Equity Support Subscription Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would be reasonably be expected to have have, individually or in the aggregate, a Material Adverse Effect or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Subscription Agreement.
(e) As e. Assuming the accuracy of their respective filing datesSubscriber’s representations and warranties in Section 4, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any of the SEC Reports.
(f) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the execution, delivery and performance by the Issuer of this Subscription Agreement (including, without limitation, the issuance of the Equity Support Shares pursuant to this Equity Support AgreementAcquired Shares), other than (i) filings the filing with the SECSecurities and Exchange Commission (the “Commission”) of the Registration Statement (as defined below), (ii) the filings required by applicable state or federal securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support Agreement; 9.m, (iv) those required by The Nasdaq the New York Stock Market LLCExchange (the “NYSE”), including with respect to obtaining approval of the Issuer’s stockholdersstockholder approval, and (v) those the failure of which to obtain would not be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect or have a material adverse effect of the Issuer’s ability to consummate the transactions contemplated hereby, including the sale and issuance of the Acquired Shares.
f. As of the date hereof, the authorized share capital of the Issuer consists of (i) 1,000,000 preference shares, par value $0.0001 per share, as such shares will exist as preferred stock following the Domestication (the “Preferred Stock”), (ii) 200,000,000 Class A Shares and (iii) 20,000,000 Class B ordinary shares, par value $0.0001 per share, as such shares will exist as Class A common stock following the Domestication (the “Class B Shares”). As of the date hereof: (1) no shares of Preferred Stock are issued and outstanding, (2) 34,500,000 Class A Shares are issued and outstanding, (3) 8,625,000 Class B Shares are issued and outstanding and (4) 14,558,333 warrants, each entitling the holder thereof to purchase one Class A Share at an exercise price of $11.50 per Class A Share, are outstanding.
g. The issued and outstanding Class A Shares are registered pursuant to Section 12(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and are listed for trading on the NYSE. There is no suit, action, proceeding or investigation pending or, to the knowledge of the Issuer, threatened against the Issuer by the NYSE or the Commission with respect to any intention by such entity to deregister the Class A Shares or prohibit or terminate the listing of the Class A Shares on the NYSE. The Issuer has taken no action that is designed to terminate the registration of the Class A Shares under the Exchange Act.
h. Assuming the accuracy of Subscriber’s representations and warranties set forth in Section 4, no registration under the Securities Act is required for the offer and sale of the Acquired Shares by the Issuer to Subscriber in the manner contemplated by this Subscription Agreement.
i. Neither the Issuer nor any person acting on its behalf has engaged or will engage in any form of general solicitation or general advertising (within the meaning of Regulation D of the Securities Act) in connection with any offer or sale of the Acquired Shares.
j. The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Acquired Shares other than to Barclays Capital Inc. and Xxxxxxx Xxxxx & Co. LLC (the “Placement Agents”).
k. Each report required to be filed by the Issuer with the Commission since its initial registration of the Class A Shares (the “SEC Documents”), as of their respective filing dates, complied in all material respects with the requirements of the Exchange Act applicable to the SEC Documents and the rules and regulations of the Commission promulgated thereunder applicable to the SEC Documents. None of the SEC Documents filed under the Exchange Act (except to the extent that information contained in any SEC Document has been superseded by a later timely filed SEC Document) contained, when filed, any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein not misleading, in the case of any SEC Document that is a registration statement, or included, when filed, any untrue statement of a material fact or omitted to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading, in the case of all other SEC Documents; provided, that, with respect to the proxy statement to be filed by the Issuer with respect to the Transaction or any of its affiliates included in any SEC Document or filed as an exhibit thereto, the representation and warranty in this sentence is made to the Issuer’s knowledge.
l. Except for such matters as have not had and would not be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect, there is no (i) suit, action, proceeding or arbitration before a governmental authority or arbitrator pending, or, to the knowledge of the Issuer, threatened against the Issuer or (ii) judgment, decree, injunction, ruling or order of any governmental entity or arbitrator outstanding against the Issuer.
m. There are no securities or instruments issued by the Issuer containing anti-dilution provisions that will be triggered by the issuance of (i) the Acquired Shares or (ii) the Class A Shares to be issued pursuant to any Other Subscription Agreement, in each case, that have not been or will not be validly waived on or prior to the Closing Date.
n. The Issuer is in compliance with all applicable laws, except where such non-compliance would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(g) As of the date hereof, the . The Issuer has not received any written communication from a governmental authority that alleges entity alleging that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to havenot, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
(h) Assuming the accuracy of each Subscriber’s representations and warranties set forth in Section 6 of this Equity Support Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Shares by the Issuer to each Subscribers.
(i) o. Neither the Issuer nor Tortoise Sponsor II LLC, a Cayman Islands limited liability company (the “Sponsor”), has entered into any person acting on its behalf has offered subscription agreement, side letter or sold the Equity Support Shares by other agreement with any form of general solicitation Other Subscriber or general advertising in violation of the Securities Act.
(j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission other investor in connection with the sale of the Equity Support Shares.
(l) The Issuer is not, and such Other Subscriber’s or investor’s direct or indirect investment in the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) Other Subscription Agreements and (ii) for the purposes of Cayman Islands lawletter agreement, is dated September 10, 2020, by and will be unable to pay its debts.
(o) The Issueramong the Sponsor, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are other parties thereto. The Other Subscription Agreements have not a party been amended in any material respect following the date of this Subscription Agreement and reflect the same Share Purchase Price and other terms with respect to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect purchase of the transactions contemplated by Acquired Shares that are no more favorable to such Subscriber thereunder than the terms of this Equity Support Agreement; (ii) has determined based on Subscription Agreement other than terms particular to the regulatory requirements of such subscriber or its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting affiliates or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15related fund.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Samples: Subscription Agreement (Tortoise Acquisition Corp. II)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers the Anchor Investor, as of the date hereof, that:
(a) a. The Issuer is an exempted company duly incorporated, validly existing as a company and in good standing under Jersey Companies Law (to the laws extent such concept exists in such jurisdiction).
b. The Issuer is duly licensed or qualified to transact business and is in good standing in each jurisdiction in which the nature of the Cayman Islandsbusiness transacted by it or the character of the properties owned or leased by it requires such licensing or qualification, except for those jurisdictions where the failure to be so licensed or qualified would not, individually or in the aggregate, result in an Issuer Material Adverse Effect (as defined below). The Issuer has all full power (corporate or otherwise) and authority to own, lease and operate its properties and conduct assets and to carry on its business as presently now conducted and as proposed to be conducted. The Issuer has full power and authority to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. .
c. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As of the Closing Date, all the Equity Support Shares will be duly authorized and, when issued and delivered to each Subscriber the Anchor Investor against full payment therefor in accordance with the terms of this Equity Support Subscription Agreement, the Equity Support Shares will be validly authorized and issued, fully paid and non-assessable assessable, and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum and articles of association organizational documents (as in effect at such time of issuance) or under the Jersey Companies Act, as amended, of the Cayman IslandsLaw.
(c) d. This Equity Support Subscription Agreement has been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Subscription Agreement constitutes the valid and binding agreement of each Subscriberthe Anchor Investor, this Equity Support Subscription Agreement is enforceable against the Issuer in accordance with its terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or (ii) principles of equity, whether considered at law or equity.
(d) The e. Assuming the accuracy of the Anchor Investor’s representations and warranties in Section 6, the issuance and sale by the Issuer of all the Equity Support Shares pursuant to this Equity Support Agreement, and the performance of its obligations hereunder and under each Pledge Subscription Agreement and Control Agreement and the transactions contemplated thereby, will not (i) conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations ability of the Issuer to consummate the issuance and its subsidiaries, taken as a whole sale of the Shares (a an “Issuer Material Adverse Effect”), or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have a an Issuer Material Adverse Effect or materially affect Effect.
f. Assuming the validity accuracy of the Equity Support Shares or Anchor Investor’s representations and warranties set forth in Section 6, the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreement.
(e) As of their respective filing dates, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any of the SEC Reports.
(f) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the issuance of the Equity Support Shares pursuant to this Equity Support Subscription Agreement, other than (i) filings with the Securities and Exchange Commission (the “SEC”), (ii) filings required by applicable state securities laws, (iii) the filings required in accordance with Section 16 13 of this Equity Support Subscription Agreement; , (iv) those required by The Nasdaq Stock Market LLCLLC (“Nasdaq”), including with respect to not obtaining approval of the Issuer’s stockholdersshareholders pursuant to Nasdaq Rule 5635, and (v) those the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a an Issuer Material Adverse Effect.
(g) As of the date hereof, the Issuer has not received any written communication from a governmental authority that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(h) g. Assuming the accuracy of each Subscriberthe Anchor Investor’s representations and warranties set forth in Section 6 of this Equity Support Subscription Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Shares by the Issuer to each Subscribersthe Anchor Investor.
(i) h. Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following i. As of the Transaction Closingdate hereof, the issued and outstanding Class A Shares of the Issuer will be are registered pursuant to Section 12(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act. Following ”) and are listed for trading on Nasdaq.
j. Concurrently with the Closingexecution and delivery of this Agreement, the Equity Support Issuer is entering into the Other Subscription Agreements. The Other Subscription Agreements reflect the same Per Share Subscription Price and other terms with respect to the purchase of the Shares that are expected no more favorable to such Other Investors than the terms of this Subscription Agreement and they shall not be registered under amended after the Exchange Actdate hereof to provide for terms with respect to the purchase of the Shares that are more favorable to such Other Investors than the terms of this Subscription Agreement, unless such terms are also offered to the Anchor Investor.
(k) k. The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Equity Support Shares.
(l) l. The Issuer is not(including any predecessor entities) is, and has been since formation, classified as an association taxable as a corporation for U.S. federal tax purposes. For so long as the Anchor Investor holds any Registrable Shares (as defined below), the Issuer shall not take any action to alter its entity classification as an association taxable as a corporation for U.S. federal tax purposes without the Anchor Investor’s prior written consent (which consent shall not be unreasonably conditioned, withheld, delayed or denied).
m. The Issuer and each of its subsidiaries have filed all material U.S. federal, state, local and non-U.S. tax returns which have been required to be filed and paid all material taxes shown thereon through the date hereof, to the extent that such taxes have become due and are not being contested in good faith. No material tax deficiency has been determined adversely to the Issuer or any of its subsidiaries, and the Issuer after the consummation has no knowledge of the transaction contemplated herebyany material tax deficiency, will not penalty or assessment which has been or might be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, asserted or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of threatened against the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) abovesubsidiaries.
Appears in 1 contract
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers that:
(a) a. The Issuer has been duly incorporated and is an exempted company duly incorporated, validly existing and as a corporation in good standing under the laws of the Cayman Islands. The Issuer has all State of Delaware, with corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As of the Closing Date, all the Equity Support b. The Acquired Shares will be have been duly authorized and, when issued and delivered to each Subscriber against full payment therefor for the Acquired Shares in accordance with the terms of this Equity Support AgreementSubscription Agreement and registered with the Transfer Agent, the Equity Support Acquired Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum certificate of incorporation and articles of association (as in effect at such time of issuance) bylaws or under the Companies Act, as amended, laws of the Cayman IslandsState of Delaware.
(c) c. This Equity Support Subscription Agreement has been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Subscription Agreement constitutes the valid and binding agreement of each the Subscriber, this Equity Support Agreement is a valid and binding obligation of the Issuer, and is enforceable against the Issuer it in accordance with its terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, reorganization, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or and (ii) principles of equity, whether considered at law or equity.
(d) d. The execution, delivery and performance of this Subscription Agreement, including the issuance and sale by of the Issuer of all the Equity Support Acquired Shares pursuant to this Equity Support Agreement, and the performance consummation of its obligations hereunder and under each Pledge Agreement and Control Agreement and the other transactions contemplated therebyhereby, will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreementsubject; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency agency, taxing authority or regulatory body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that that, in the case of clauses (i) and (iii), would reasonably be expected to have a Material Adverse Effect material adverse effect on the business, properties, assets, liabilities, operations, condition (including financial condition), stockholders’ equity or results of operations of the Issuer or materially and adversely affect the validity of the Equity Support Acquired Shares or the legal authority or ability of the Issuer to comply perform in all any material respects with its obligations under this Equity Support Agreementhereunder (a “Material Adverse Effect”).
e. There are no securities or instruments issued by or to which the Issuer is a party containing anti-dilution or similar provisions that will be triggered by the issuance of (ei) As of their respective filing dates, all reports required the Acquired Shares or (ii) the shares to be filed by issued pursuant to any Other Subscription Agreement, that have not been or will not be validly waived on or prior to the Issuer with Closing Date, including such provisions in the U.S. Securities and Exchange Commission Issuer’s Class B common stock, par value $0.0001 per share (the “SECClass B Shares”) since January 13), 2021 (pursuant to the “SEC Reports”) complied in all material respects with the applicable requirements terms of the Exchange Act Issuer’s certificate of incorporation.
f. The Issuer is not in default or violation (and no event has occurred which, with notice or the rules and regulations lapse of time or both, would constitute a default or violation) of any term, condition or provision of (i) the organizational documents of the SEC promulgated thereunder. As Issuer, (ii) any loan or credit agreement, guarantee, note, bond, mortgage, indenture, lease or other agreement, permit, franchise or license to which, as of the date hereofof this Subscription Agreement, there are no material outstanding or unresolved comments in comment letters received by the Issuer from is a party or by which the staff Issuer’s properties or assets are bound or (iii) any statute or any judgment, order, rule or regulation of any court or governmental agency, taxing authority or regulatory body, domestic or foreign, having jurisdiction over the Division of Corporation Finance of the SEC with respect to Issuer or any of its properties, except, in the SEC Reportscase of clauses (ii) and (iii), for defaults or violations that have not had and would not be reasonably likely to have, individually or in the aggregate, a Material Adverse Effect.
(f) g. The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the execution, delivery and performance by the Issuer of this Subscription Agreement (including, without limitation, the issuance of the Equity Support Shares pursuant to this Equity Support AgreementAcquired Shares), other than (i) filings the filing with the SECSecurities and Exchange Commission (the “Commission”) of the Registration Statement (as defined below), (ii) filings required by applicable state securities laws, (iii) the filings required in accordance with Section 16 9(r) of this Equity Support Subscription Agreement; (ivv) those required by The Nasdaq Stock Market LLCNasdaq, including with respect to obtaining approval of the Issuer’s stockholders, ; (vi) those that will be obtained on or prior to the Closing and (vvi) those any filing, the failure of which to obtain would not be reasonably be expected likely to have, individually or in the aggregate, a Material Adverse Effect.
h. As of the date of this Subscription Agreement and as of immediately prior to the Closing Date, the authorized capital stock of the Issuer consists of (gi) 1,000,000 shares of preferred stock, par value $0.0001 per share (“Preferred Stock”) and (ii) 110,000,000 shares of common stock, par value $0.0001 per share (the “Common Stock”), including (1) 100,000,000 Class A Shares and (2) 10,000,000 Class B Shares. As of the date of this Subscription Agreement, (i) no shares of Preferred Stock are issued and outstanding, (ii) 23,610,000 Class A Shares are issued and outstanding, (iii) 7,860,000 Class B Shares are issued and outstanding and (iv) 7,666,666 redeemable warrants and 203,333 private placement warrants are outstanding. All (i) issued and outstanding Class A Shares and Class B Shares have been duly authorized and validly issued, are fully paid and are non-assessable and are not subject to preemptive rights and (ii) outstanding warrants have been duly authorized and validly issued, are fully paid and are not subject to preemptive rights. Except as set forth above and pursuant to the Other Subscription Agreements and the Transaction Agreement, there are no outstanding options, warrants or other rights to subscribe for, purchase or acquire from the Issuer any shares of Common Stock or other equity interests in the Issuer, or securities convertible into or exchangeable or exercisable for such equity interests. As of the date hereof, the Issuer has no subsidiaries and does not own, directly or indirectly, interests or investments (whether equity or debt) in any person, whether incorporated or unincorporated. Except as disclosed in the SEC Documents, as of September 30, 2020, the Issuer had no outstanding indebtedness and will not have any outstanding long-term indebtedness as of the Closing Date.
i. The Issuer has not received any written communication from a governmental authority entity that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not, individually or in the aggregate, be reasonably likely to have a Material Adverse Effect.
j. The issued and outstanding Class A Shares are registered pursuant to Section 12(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and are listed for trading on Nasdaq under the symbol “FTIV.” There is no suit, action, proceeding or investigation pending or, to the knowledge of the Issuer, threatened against the Issuer by Nasdaq or the Commission with respect to any intention by such entity to deregister the Class A Shares or prohibit or terminate the listing of the Class A Shares on Nasdaq, excluding, for the purposes of clarity, the customary ongoing review by Nasdaq of the Issuer's continued listing application in connection with the Transactions. The Issuer has taken no action that is designed to terminate the registration of the Class A Shares under the Exchange Act or the listing of the Class A Shares on Nasdaq.
k. Assuming the accuracy of Subscriber’s representations and warranties set forth in Section 4 of this Subscription Agreement, no registration under the Securities Act is required for the offer and sale of the Acquired Shares by the Issuer to Subscriber in the manner contemplated by this Subscription Agreement. Except as provided in this Subscription Agreement and the Other Subscription Agreements, none of the Issuer, its subsidiaries or any of their affiliates, nor any person acting on their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would require registration of the issuance of any of the Acquired Shares under the Securities Act, whether through integration with prior offerings pursuant to Rule 502(a) of the Securities Act or otherwise.
l. Neither the Issuer, nor any person acting on its behalf has engaged or will engage in any form of general solicitation or general advertising (within the meaning of Regulation D of the Securities Act) in connection with any offer or sale of the Acquired Shares.
m. The Other Subscription Agreements reflect the same Per Share Price and other terms with respect to the purchase of the Acquired Shares that are no more favorable to such subscriber thereunder than the terms of this Subscription Agreement, other than any Alternative Settlement Procedures and terms particular to the regulatory requirements of such subscriber or its affiliates or related funds; provided, however, that Subscriber acknowledges that the subscription agreement entered into with Xxxxx & Company, LLC or its affiliate provides that Xxxxx & Company, LLC or its affiliate may increase the number of Acquired Shares to be purchased under such agreement at any time prior to Closing.
n. The Issuer has made available to Subscriber (availability via the Commission’s XXXXX system or any successor system being sufficient) a true, correct and complete copy of each form, report, statement, schedule, prospectus, proxy, registration statement and other document filed by the Issuer with the Commission prior to the date of this Subscription Agreement (the “SEC Documents”) and such SEC Documents complied in all material respects with the requirements of the Exchange Act and the rules and regulations of the Commission promulgated thereunder. None of the SEC Documents filed under the Exchange Act contained, when filed and as amended to the date hereof, any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading, and such SEC Documents complied in all material respects with the requirements of the Exchange Act and the rules and regulations of the Commission promulgated thereunder. The Issuer has timely filed each report, statement, schedule, prospectus, and registration statement that the Issuer was required to file with the Commission since its inception. There are no material outstanding or unresolved comments in comment letters from the Commission Staff with respect to any of the SEC Documents. Each of the financial statements (including, in each case, any notes thereto) contained in the SEC Documents was prepared in accordance with U.S. generally accepted accounting principles applied on a consistent basis throughout the periods indicated (except as may be indicated in the notes thereto or, in the case of unaudited statements, as permitted by Form 10-Q of the Commission) and each fairly presents, in all material respects, the financial position, results of operations and cash flows of the Issuer as at the respective dates thereof and for the respective periods indicated therein.
o. Except for such matters as have not had and would not be reasonably be expected likely to have, individually or in the aggregate, a Material Adverse Effect.
(h) Assuming the accuracy of each Subscriber’s representations and warranties set forth in Section 6 of this Equity Support Agreement, there is no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Shares by the Issuer to each Subscribers.
(i) Neither action, suit, claim or other proceeding, in each case by or before any governmental authority pending, or, to the knowledge of the Issuer, threatened against the Issuer nor or (ii) judgment, decree, injunction, ruling or order of any person acting on its behalf has offered or sold governmental entity outstanding against the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities ActIssuer.
p. Except for placement fees payable to the Placement Agents (j) Following the Transaction Closingas defined herein), the issued Issuer has not paid, and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under obligated to pay, any obligation to pay any brokerbrokerage, finder’s or other fee or commission in connection with the its issuance and sale of the Equity Support Acquired Shares.
(l) The Issuer is not, and the Issuer after the consummation of the transaction contemplated herebyincluding, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, any fee or commission payable to any stockholder or affiliate of the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o)Issuer.
(p) As of the date hereof, q. The Issuer represents and warrants that each of the Issuer and any of its directors and officers and, to the Issuer’s knowledge, PWP, any of PWP’s directors and officers and any of the Issuer’s and PWP’s respective employees, representatives, agents and any person acting on its or their behalf is not (i) a person or entity named on the List of Specially Designated Nationals and Blocked Persons, the Executive Order 13599 List, the Foreign Sanctions Evaders List, or the Sectoral Sanctions Identification List, each of which is administered by the U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”), or any other Executive Order issued by the President of the United States and administered by OFAC (collectively “OFAC Lists”), (ii) owned or controlled by, or acting on behalf of, a person, that is named on an OFAC List; (iii) organized, incorporated, established, located, resident or born in, or a citizen, national, or the government, including any political subdivision, agency, or instrumentality thereof, of, Cuba, Iran, North Korea, Syria, the Crimea region of Ukraine, or any other country or territory embargoed or subject to substantial trade restrictions by the United States or (iv) a Designated National as defined in the Cuban Assets Control Regulations, 31 C.F.R. Part 515.
r. The Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses represents and warrants that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect each of the transactions contemplated by this Equity Support Agreement; (ii) has determined based Issuer any of its directors and officers and, to the Issuer’s knowledge, PWP, any of PWP’s directors and officers and any of the Issuer’s and PWP’s respective employees, representatives, agents and any person acting on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are or their behalf has not engaged in any activity or conduct which would violate any applicable anti-bribery, anti-corruption or anti-money laundering laws, regulations or rules in any applicable jurisdiction (A) are fully consistent with its financial needsincluding, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions U.S. Foreign Corrupt Practices Act of Sections 71977, 13 and 15.
as amended), (rii) (i) The directors of the Issuer have concluded that (A) and, to the this Equity Support Agreement Issuer’s knowledge, PWP has instituted and the transactions contemplated hereby are suitable for itmaintains systems, for its commercial benefit policies and in its best interestsprocedures designed to prevent violation of such laws, in light of its own business objectives, financial condition regulations and expertise rules and (Biii) this Equity Support Agreement has been duly approved and authorized no action, suit or proceeding by directors of or before any court or governmental or regulatory agency, authority or body or any arbitrator having jurisdiction over the Issuer after due consideration by them of or, to the foregoing matters Issuer’s knowledge, PWP with respect to such laws, regulations and those referred rules is pending and, to in Section 5(q) abovethe Issuer’s knowledge, no such actions, suits or proceedings are threatened or contemplated.
Appears in 1 contract
Samples: Subscription Agreement (FinTech Acquisition Corp. IV)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers that:
(a) a. The Issuer is an exempted company has been duly incorporated, is validly existing as a corporation and is in good standing under the laws of the Cayman Islands. The Issuer has all State of Delaware, with corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As of the Closing Date, all the Equity Support b. The Acquired Shares will be have been duly authorized and, when issued and delivered to each Subscriber against full payment therefor for the Acquired Shares in accordance with the terms of this Equity Support AgreementSubscription Agreement and registered with the Issuer’s transfer agent, the Equity Support Acquired Shares will be validly issued, fully paid and non-assessable assessable, free and clear of any liens or other restrictions whatsoever (other than those arising under state or federal securities laws), and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum certificate of incorporation and articles of association (as in effect at such time of issuance) bylaws or under the Companies Act, as amended, laws of the Cayman IslandsState of Delaware.
c. This Subscription Agreement, the Other Subscription Agreements and the Combination Agreement (ccollectively, the “Transaction Documents”) This Equity Support Agreement has have been duly authorized, executed and delivered by the Issuer andIssuer, assuming that this Equity Support Agreement constitutes constitute the valid and legally binding agreement obligations of each Subscriberthe Issuer, this Equity Support Agreement is and are enforceable against the Issuer in accordance with its their respective terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, fraudulent transfer, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or and (ii) principles of equity, whether considered at law or equity.
(d) d. The issuance execution and sale delivery by the Issuer of all the Equity Support Shares pursuant to this Equity Support AgreementTransaction Documents, and the performance by the Issuer of its obligations hereunder under the Transaction Documents, including the issuance and under each Pledge Agreement and Control Agreement sale of the Acquired Shares and the consummation of the other transactions contemplated therebyherein, do not and will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that subject, which would reasonably be expected to have have, individually or in the aggregate, a material adverse effect on the business, properties, financial condition condition, stockholders’ equity or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under the terms of this Equity Support AgreementSubscription Agreement or the Issuer’s ability to consummate the transactions contemplated hereby (including the issuance and sale of the Acquired Shares or the Transaction (a “Material Adverse Effect”); (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation statute or any judgment, order, rule or regulation of any lawcourt or governmental agency, taxing authority or regulatory body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect or materially affect the validity of the Acquired Shares, the Issuer’s ability to consummate the transactions contemplated hereby, including the sale and issuance of the Acquired Shares, or the legal authority of the Issuer to comply in all material respects with this Subscription Agreement.
e. There are no securities or instruments issued by or to which the Issuer is a party containing anti-dilution or similar provisions that will be triggered by the issuance of (i) the Acquired Shares, (ii) the Shares to be issued pursuant to any Other Subscription Agreement, or (iii) the Shares to be issued pursuant to the Transaction, in each case, that have not been or will not be validly waived on or prior to the Closing Date.
f. The Issuer is not in default or violation (and no event has occurred which, with notice or the lapse of time or both, would constitute a default or violation) of any term, condition or provision of (i) the organizational documents of the Issuer, (ii) any loan or credit agreement, note, bond, mortgage, indenture, lease or other agreement, permit, franchise or license to which the Issuer is now a party or by which the Issuer’s properties or assets are bound or (iii) any statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties properties, except, in the case of clauses (ii) and (iii), for defaults or violations that have not had and would not be reasonably be expected to have have, individually or in the aggregate, a Material Adverse Effect or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support AgreementEffect.
(e) As of their respective filing dates, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any of the SEC Reports.
(f) g. The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the execution, delivery and performance by the Issuer of this Subscription Agreement or the Transaction (including, without limitation, the issuance of the Equity Support Shares pursuant to this Equity Support AgreementAcquired Shares), other than (i) filings the filing with the SECSecurities and Exchange Commission (the “Commission”) of the Registration Statement (as defined below), (ii) approval of the Issuer’s stockholders to increase the authorized shares of the Issuer’s common stock and the filing of an amended and restated certificate of incorporation authorizing a sufficient number of authorized shares of Issuer’s common stock to issue the Acquired Shares and Shares purchased by the Other Subscribers pursuant to the Other Subscription Agreements; (iii) filings required by applicable state securities laws, (iiiiv) the filings required in accordance with Section 16 of this Equity Support Agreement; 9(p), (ivv) those required by The Nasdaq the New York Stock Market LLCExchange (“NYSE”), including with respect to obtaining approval of the Issuer’s stockholdersstockholder approval, and (vvi) those any filing, the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(g) As Effect or materially affect the validity of the date hereof, Acquired Shares or the Issuer has not received any written communication from a governmental legal authority that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(h) Assuming the accuracy of each Subscriber’s representations and warranties set forth in Section 6 of this Equity Support Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Shares by the Issuer to each Subscriberscomply in all material respects with this Subscription Agreement.
(i) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support h. The Acquired Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Equity Support Shares.
(l) The Issuer is not, and following the Issuer after Closing and the consummation closing of the transaction contemplated hereby, Transaction will not be required be, subject to register as an any Transfer Restriction. The term “investment companyTransfer Restriction” as such term is defined in means any condition to or restriction on the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation ability of the transaction contemplated hereby will beSubscriber to pledge, an “eligible contract participant” (as such term is defined in Section 1a(18) of sell, assign or otherwise transfer the Commodity Exchange ActAcquired Shares under any organizational document, as amendedpolicy or agreement of, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, by or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPACand, the shareholders of the Issuer or the shareholders of the SPAC. For for the avoidance of doubt, do not include the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach restrictions on transfer described in paragraph 4(e) of this Section 5(o).
(p) As Subscription Agreement with respect to the status of the date hereof, each Acquired Shares as “restricted securities” pending their registration for resale under the Securities Act in accordance with the terms of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third partiesSubscription Agreement.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers that:
(a) a. The Issuer has been duly incorporated and is an exempted company duly incorporated, validly existing and as a corporation in good standing under the laws of the Cayman Islands. The Issuer has all State of Delaware, with corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As of the Closing Date, all the Equity Support b. The Acquired Shares will be have been duly authorized and, when issued and delivered to each Subscriber against full payment therefor for the Acquired Shares in accordance with the terms of this Equity Support Subscription Agreement, the Equity Support Acquired Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum and articles certificate of association incorporation (as in effect at such time amended as of issuancethe Closing Date) and bylaws or under the Companies Act, as amended, laws of the Cayman IslandsState of Delaware.
(c) c. This Equity Support Subscription Agreement has been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Agreement constitutes the valid and binding agreement of each Subscriber, this Equity Support Agreement is enforceable against the Issuer in accordance with its terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or and (ii) principles of equity, whether considered at law or equity.
(d) The issuance d. Assuming the accuracy of the Subscribers’ representations and sale warranties in Section 5, the execution and delivery by the Issuer of all the Equity Support Shares pursuant to this Equity Support Subscription Agreement, and the performance by the Issuer of its obligations hereunder under this Subscription Agreement, including the issuance and under each Pledge Agreement and Control Agreement sale of the Acquired Shares and the consummation of the other transactions contemplated therebyherein, do not and will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that subject, which would reasonably be expected to have a material adverse effect on the business, properties, financial condition condition, stockholders’ equity or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), ) or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under the terms of this Equity Support Subscription Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties properties, in the case of each of the foregoing clauses (i)-(iii) that would reasonably be expected to have a Material Adverse Effect or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Subscription Agreement.
e. The issued and outstanding Common Shares are registered pursuant to Section 12(b) of the Securities Exchange Act of 1934, as amended (e) As the “Exchange Act”), and are listed for trading on the Stock Exchange. There is no suit, action, proceeding or investigation pending or, to the knowledge of their respective filing datesthe Issuer, all reports required to be filed threatened against the Issuer by the Issuer with Stock Exchange or the U.S. Securities and Exchange Commission (the “SECCommission”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any intention by such entity to deregister the Common Shares or prohibit or terminate the listing of the SEC Reports.
(f) Common Shares on the Stock Exchange. The Issuer has taken no action that is not required designed to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or terminate the registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the issuance of the Equity Support Common Shares pursuant to this Equity Support Agreement, other than (i) filings with the SEC, (ii) filings required by applicable state securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support Agreement; (iv) those required by The Nasdaq Stock Market LLC, including with respect to obtaining approval of the Issuer’s stockholders, and (v) those the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(g) As of the date hereof, the Issuer has not received any written communication from a governmental authority that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(h) Assuming the accuracy of each Subscriber’s representations and warranties set forth in Section 6 of this Equity Support Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Shares by the Issuer to each Subscribers.
(i) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Equity Support Shares.
(l) The Issuer is not, and the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Samples: Subscription Agreement (Advanced Emissions Solutions, Inc.)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers that:the Investor that (provided that no representation or warranty by Issuer shall apply to any statement or information in the SEC Reports (as defined below) that relates to the topics referenced in the Statement (as defined below), any reclassification of the Issuer’s public shares or any other accounting matters with respect to Issuer’s securities or expenses or other initial public offering related matters, nor shall any correction, amendment or restatement of Issuer’s filings or financial statements arising from or relating to the Statement or any other accounting matters, nor any other effects that relate to or arise out of, or are in connection with or in response to, any of the foregoing or any changes in accounting or disclosure related thereto, be deemed to be material for purposes of this Subscription Agreement or be deemed to be a breach of any representation or warranty by Issuer or a Material Adverse Effect):
(a) The a. As of the date hereof, Issuer is an exempted company duly incorporatedformed, validly existing and in good standing under the laws of the Cayman IslandsIslands (to the extent such concept exists in such jurisdiction). The Issuer has all power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing DateClosing, following the Domestication Merger, Issuer will be duly incorporatedformed, validly existing as a corporation and in good standing under the laws of the Cayman IslandsState of Delaware.
(b) b. As of the Closing DateClosing, all the Equity Support Shares will be duly authorized and, when issued and delivered to each Subscriber the Investor against full payment therefor in accordance with the terms of this Equity Support Subscription Agreement, the Equity Support Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum and articles certificate of association incorporation (as adopted in effect at such time of issuanceconnection with the Domestication Merger) or under the Companies Act, as amended, General Corporation Law of the Cayman IslandsState of Delaware.
(c) c. This Equity Support Subscription Agreement has been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Subscription Agreement constitutes the valid and binding agreement of each Subscriberthe Investor, this Equity Support Subscription Agreement is enforceable against the Issuer in accordance with its terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or (ii) principles of equity, whether considered at law or equity.
(d) d. The issuance and sale by of the Issuer of all the Equity Support Shares pursuant to this Equity Support Agreement, and the performance compliance by Issuer with all of its obligations hereunder and under each Pledge Agreement and Control the provisions of this Subscription Agreement and the consummation of the transactions contemplated thereby, herein will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that would reasonably be expected to have a material adverse effect on materially affect the business, financial condition or results of operations validity of the Shares or the legal authority of Issuer and its subsidiaries, taken as a whole to timely comply in all material respects with the terms of this Subscription Agreement (a “Material Adverse Effect”), or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have a Material Adverse Effect or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support AgreementEffect.
(e) e. As of their respective filing dates, all reports (the “SEC Reports”) required to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any of the SEC Reports.
(f) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the issuance of the Equity Support Shares pursuant to this Equity Support Agreement, other than (i) filings with the SEC, (ii) filings required by applicable state securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support Agreement; (iv) those required by The Nasdaq Stock Market LLC, including with respect to obtaining approval of the Issuer’s stockholders, and (v) those the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(g) As of the date hereof, the Issuer has not received any written communication from a governmental authority that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(h) Assuming the accuracy of each Subscriber’s representations and warranties set forth in Section 6 of this Equity Support Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”) and the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations of the SEC promulgated thereunder, and none of the SEC Reports, when filed or, if amended, as of the date of such amendment, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. Each Investor acknowledges that (i) the Staff of the SEC issued the Staff Statement on Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies on April 12, 2021 (together with any subsequent guidance, statements or interpretations issued by the SEC or the Staff relating thereto or to other accounting matters related to Issuer’s securities or expenses or other initial public offering related matters, the “Statement”), (ii) Issuer continues to review the Statement and its implications, including on the financial statements and other information included in the SEC Reports and (iii) any restatement, revision or other modification of the SEC Reports, including, without limitation, any changes to historical accounting policies of Issuer and any reclassification of the Issuer’s public shares in connection with any order, directive, guideline, comment or recommendation from the SEC that is applicable to Issuer, including, without limitation, arising from or relating to Issuer’s review of the Statement shall be deemed not material for purposes of this Subscription Agreement.
f. Assuming the accuracy of the Investor’s representations and warranties set forth in Section 6 of this Subscription Agreement, no registration under the Securities Act is required for the offer and sale of the Equity Support Shares by the Issuer to each Subscribers.
the Investor hereunder. The Shares (i) Neither the Issuer nor any person acting on its behalf has were not offered or sold the Equity Support Shares by any form of general solicitation or general advertising and (ii) are not being offered in a manner involving a public offering under, or in a distribution in violation of of, the Securities Act, or any state securities laws.
g. Other than (ji) Following the Transaction ClosingOther Subscription Agreements, (ii) the issued Business Combination Agreement and outstanding Shares any agreement explicitly contemplated thereby, (iii) any other subscription agreement entered into after the date of this Subscription Agreement with respect to the same class of shares being acquired by Investor hereunder and at the same Per Share Purchase Price and otherwise on substantially similar economic terms and in substantially similar form as this Subscription Agreement (each, a “Subsequent Subscription Agreement” and the investor thereunder, a “Subsequent Investor”), and (iv) any commercial agreement entered into after the date of this Subscription Agreement that is unrelated to the financing of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee Company or commission New CCNB or fundraising in connection with the sale of the Equity Support Shares.
(l) The Issuer is notTransaction, and the Issuer after the consummation of the transaction contemplated hereby, will has not be required to register as an “entered into any side letter or similar agreement with any investor in connection with such investor’s direct or indirect investment company” as such term is defined in the Investment Company Act of 1940, as amended.
Issuer (m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) any side letter or similar agreement relating to the transfer to any investor of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person securities of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit by existing securityholders of the Issuer, which may be effectuated as a forfeiture to the SPACIssuer and reissuance, or (ii) securities to be issued to the shareholders direct or indirect securityholders of the Issuer Company pursuant to the Business Combination Agreement). No Subsequent Subscription Agreement and no Other Subscription Agreement (other than any subscription agreement entered into by XX Xxxxxxxxx Principal Holdings II Sponsor LLC or Getty Investment L.L.C., or their affiliates which, however, shall be with respect to the shareholders same class of shares being acquired by Investor hereunder and at the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted same Per Share Purchase Price) includes terms and discussing, negotiatingconditions that are materially more advantageous to any such Subsequent Investor or Other Investor than Investor hereunder, and closing no such a facility shall not be a breach Subsequent Subscription Agreement or Other Subscription Agreement has been amended in any material respect following the date of this Section 5(o)Subscription Agreement.
h. The Issuer has prior to the date, or shall on the first (p1st) As of business day immediately following the date hereof, each of issued or issue one or more press releases or filed with the Issuer and the Issuer Shareholder are not SEC a party to any agreement with any third parties containing “most favored nation” clauses Current Report on Form 8-K that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect disclosed or discloses all material terms of the transactions contemplated hereby, by this Equity Support Agreement; (ii) has determined based on its own independent review the Other Subscription Agreements and such professional advice as it deems appropriate that this Equity Support the Business Combination Agreement and other material nonpublic information that Issuer has provided to the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable Investor at any time prior to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15date hereof.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Samples: Subscription Agreement (CC Neuberger Principal Holdings II)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers that:
(a) a. The Issuer has been duly incorporated and is an exempted company duly incorporated, validly existing and as a corporation in good standing under the laws of the Cayman Islands. The Issuer has all State of Delaware, with corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As .
b. The shares to be issuable upon exercise of the Closing DateWarrants (the “Acquired Shares” and together with the Warrants, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b“Securities”) As of the Closing Date, all the Equity Support Shares will be have been duly authorized and, when issued and delivered to each Subscriber against full payment therefor Ardour in accordance with the terms of this Equity Support Subscription Agreement and the Warrant Agreement against payment therefor pursuant to the terms of the Warrant Agreement, the Equity Support Acquired Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum certificate of incorporation and articles of association (as in effect at such time of issuance) bylaws or under the Companies Act, as amended, laws of the Cayman IslandsState of Delaware.
(c) c. This Equity Support Subscription Agreement has been duly authorized, executed and delivered by the Issuer andIssuer, assuming that this Equity Support and the Warrant Agreement constitutes (together with the Subscription Agreement, the “Transaction Documents”) has been duly authorized by the Issuer. The Subscription Agreement constitutes, and when duly executed and delivered in connection with the Closing, the Warrant Agreement will constitute, the valid and legally binding agreement obligation of each Subscriberthe Issuer, this Equity Support Agreement is enforceable against the Issuer in accordance with its their terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or generally and (ii) principles of equity, whether considered at law or equity.
(d) d. The issuance execution and sale delivery by the Issuer of all the Equity Support Shares pursuant to this Equity Support AgreementTransaction Documents, and the performance by the Issuer of its obligations hereunder under the Transaction Documents, including the issuance and under each Pledge Agreement and Control Agreement sale of the Securities and the consummation of the other transactions contemplated therebyherein, do not and will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that subject, which would reasonably be expected to have have, individually or in the aggregate, a material adverse effect on the business, properties, financial condition condition, stockholders’ equity or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), ) or materially affect the validity of the Equity Support Shares Securities or the legal authority of the Issuer to comply in all material respects with its obligations under the terms of this Equity Support Subscription Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have have, individually or in the aggregate, a Material Adverse Effect or materially affect the validity of the Equity Support Shares Securities or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Subscription Agreement.
e. The Issuer is not in default or violation (eand no event has occurred which, with notice or the lapse of time or both, would constitute a default or violation) As of their respective filing datesany term, all reports required condition or provision of (i) the organizational documents of the Issuer, (ii) any loan or credit agreement, note, bond, mortgage, indenture, lease or other agreement, permit, franchise or license to be filed by which the Issuer with is now a party or by which the U.S. Securities and Exchange Commission Issuer’s properties or assets are bound or (the “SEC”iii) since January 13any statute or any judgment, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements order, rule or regulation of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereofany court or governmental agency or body, there are no material outstanding domestic or unresolved comments in comment letters received by foreign, having jurisdiction over the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to or any of its properties, except, in the SEC Reportscase of clauses (ii) and (iii), for defaults or violations that have not had and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(f) f. The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the execution, delivery and performance by the Issuer of this Subscription Agreement (including, without limitation, the issuance of the Equity Support Shares pursuant to this Equity Support AgreementSecurities), other than (i) filings the filing with the SECSecurities and Exchange Commission (the “Commission”) of the Registration Statement (as defined below), (ii) filings required by applicable state or federal securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support the BCA and Warrant Agreement; , (iv) those required by The Nasdaq Stock Market LLCNasdaq, including with respect to obtaining approval of the Issuer’s stockholdersstockholder approval, and (v) those the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse EffectEffect or have a material adverse effect on the Issuer’s ability to consummate the transactions contemplated hereby, including the sale and issuance of the Securities.
g. The authorized capital stock of the Issuer consists of (gi) 1,000,000 shares of preferred stock, par value $0.0001 per share (“Preferred Stock”), (ii) 250,000,000 Class A Shares and (iii) 20,000,000 shares of Class B common stock, par value $0.0001 per share (“Class B Shares”). As of the date hereofhereof and as of immediately prior to the Closing: (A) no shares of Preferred Stock are issued and outstanding, (B) 22,572,502 Class A Shares are issued and outstanding, (C) 5,643,125 Class B Shares are issued and outstanding and (D) 17,800,751 warrants, each entitling the holder thereof to purchase one Class A Share at an exercise price of $11.50, are outstanding.
h. The Issuer has not received any written communication from a governmental authority that alleges entity alleging that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
i. The issued and outstanding Class A Shares are registered pursuant to Section 12(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and are listed on Nasdaq. There is no suit, action, proceeding or investigation pending or, to the Issuer’s knowledge, threatened against the Issuer by Nasdaq or the Commission with respect to any intention by such entity to deregister the Class A Shares or prohibit or terminate the listing of the Class A Shares on Nasdaq. The Issuer has taken no action that is designed to terminate the registration of the Class a Shares under the Exchange Act.
j. Assuming the accuracy of Ardour’s representations and warranties set forth in Section 4, no registration under the Securities Act is required for the offer and sale of the Securities by the Issuer to Ardour in the manner contemplated by this Subscription Agreement.
k. Neither the Issuer nor any person acting on its behalf has engaged or will engage in any form of general solicitation or general advertising (within the meaning of Regulation D of the Securities Act) in connection with any offer or sale of the Securities.
l. The Issuer has made available to Ardour and the Financial Advisor (including via the Commission’s XXXXX system) a copy of each form, report, statement, schedule, prospectus, proxy, registration statement and other document, if any, filed by the Issuer with the Commission since its initial registration of the Class A Shares (the “SEC Documents”), which SEC Documents, as of their respective filing dates, complied in all material respects with the applicable requirements of the Exchange Act and the applicable rules and regulations of the Commission promulgated thereunder. None of the SEC Documents filed under the Exchange Act (except to the extent that information contained in any SEC Document has been superseded by a later timely filed SEC Document) contained, when filed, any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein not misleading, in the case of any SEC Document that is a registration statement, or included, when filed, any untrue statement of a material fact or omitted to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, in the case of all other SEC Documents; provided, that, with respect to the proxy statement to be filed by the Issuer with respect to the Transaction or any of its affiliates included in any SEC Document or filed as an exhibit thereto, the representation and warranty in this sentence is made to the Issuer’s knowledge. The Issuer has timely filed each report, statement, schedule, prospectus and registration statement that the Issuer was required to file with the Commission since its inception. There are no material outstanding or unresolved comments in comment letters from the Staff of the Commission with respect to any of the SEC Documents.
m. There is no (i) proceeding pending, or, to the Issuer’s knowledge, threatened against the Issuer, or (ii) judgment, decree, injunction, ruling or order of any governmental entity or arbitrator outstanding against the Issuer, except for such matters as have not had and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(h) Assuming the accuracy of each Subscribern. The Issuer has not paid, and is not obligated to pay, any brokerage, finder’s representations and warranties set forth or other commission or similar fee in Section 6 of this Equity Support Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer connection with its issuance and sale of the Equity Support Shares by the Issuer to each SubscribersSecurities.
(i) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Equity Support Shares.
(l) The Issuer is not, and the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Samples: Subscription Agreement (Decarbonization Plus Acquisition Corp)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers the Investor that:
(a) The Issuer is an exempted company duly incorporated, validly existing and in good standing under the laws of the Cayman IslandsIslands (to the extent such concept exists in such jurisdiction). The Issuer has all power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the each Closing Date, following the Domestication, Issuer will be duly incorporated, validly existing as a corporation and in good standing under the laws of the Cayman IslandsState of Delaware.
(b) As of the each Closing Date, all the Equity Support Shares will be duly authorized and, when issued and delivered to each Subscriber the Investor against full payment therefor in accordance with the terms of this Equity Support Subscription Agreement, the Equity Support Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum and articles certificate of association incorporation (as in effect at such time of issuance) or under the Companies Act, as amended, of the Cayman IslandsDelaware General Corporation Law.
(c) This Equity Support Subscription Agreement has been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Subscription Agreement constitutes the valid and binding agreement of each Subscriberthe Investor, this Equity Support Subscription Agreement is enforceable against the Issuer in accordance with its terms, except as may be limited or otherwise affected by by
(i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or (ii) principles of equity, whether considered at law or equity.
(d) The issuance and sale by the Issuer of all the Equity Support Shares pursuant to this Equity Support Agreement, and the performance of its obligations hereunder and under each Pledge Subscription Agreement and Control Agreement and the transactions contemplated thereby, will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Subscription Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have a Material Adverse Effect or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Subscription Agreement.
(e) As of their respective filing dates, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) SEC since January 13November 1, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder, except that the quarterly reports for the three months ended March 31, 2023 and for the three months ended June 30, 2023 were each filed after their respective due dates. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any of the SEC Reports.
(f) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the issuance of the Equity Support Shares pursuant to this Equity Support Subscription Agreement, other than (i) filings with the SEC, (ii) filings required by applicable state securities laws, (iii) the filings required in accordance with Section 16 13 of this Equity Support Subscription Agreement; , (iv) those required by The Nasdaq Stock Market LLC, including with respect to obtaining approval of the Issuer’s stockholders, and (v) those the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(g) As of the date hereof, the Issuer has not received any written communication from a governmental authority that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(h) Assuming the accuracy of each Subscriberthe Investor’s representations and warranties set forth in Section 6 of this Equity Support Subscription Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Shares by the Issuer to each Subscribersthe Investor.
(i) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following As of the Transaction Closingdate hereof, the issued and outstanding Shares Class A ordinary shares of the Issuer will be are registered pursuant to Section 12(b) of the Exchange Act. Following the ClosingDomestication, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Equity Support Shares.
(l) The Issuer is not, and the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Samples: Subscription Agreement (Perception Capital Corp. II)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers thatthat as of the Closing Date:
(a) a. The Issuer has been duly incorporated and is an exempted company duly incorporated, validly existing and as a corporation in good standing under the laws of the Cayman Islands. The Issuer has all State of Delaware, with corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As of the Closing Date, all the Equity Support b. The Acquired Shares will be have been duly authorized and, when issued and delivered to each Subscriber against full payment therefor for the Acquired Shares in accordance with the terms of this Equity Support Subscription Agreement, the Equity Support Acquired Shares will be validly issued, fully paid and non-assessable and free and clear of any liens or other restrictions whatsoever (other than those arising under state or federal securities laws or as set forth herein), and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum certificate of incorporation and articles of association (as in effect at such time of issuance) bylaws or under the Companies Act, as amended, laws of the Cayman IslandsState of Delaware.
c. This Subscription Agreement, the Other Subscription Agreements and the Combination Agreement (ccollectively, the “Transaction Documents”) This Equity Support Agreement has have been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Agreement constitutes the valid and binding agreement of each Subscriber, this Equity Support Agreement is are enforceable against the Issuer in accordance with its their respective terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or and (ii) principles of equity, whether considered at law or equity.
(d) d. The issuance execution and sale delivery by the Issuer of all the Equity Support Shares pursuant to this Equity Support AgreementTransaction Documents, and the performance by the Issuer of its obligations hereunder under the Transaction Documents, including the issuance and under each Pledge Agreement and Control Agreement sale of the Acquired Shares and the consummation of the other transactions contemplated therebyherein, do not and will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that subject, which would reasonably be expected to have have, individually or in the aggregate, a material adverse effect on the business, properties, financial condition condition, stockholders’ equity or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), ) or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under the terms of this Equity Support Subscription Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have have, individually or in the aggregate, a Material Adverse Effect or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Subscription Agreement.
e. There are no securities or instruments issued by or to which the Issuer is a party containing anti-dilution or similar provisions that will be triggered by the issuance of (ei) As of their respective filing dates, all reports required the Acquired Shares or (ii) the Series A Shares to be filed by issued pursuant to any Other Subscription Agreement, in each case, that have not been or will not be validly waived on or prior to the Closing Date.
f. The Issuer is not in default or violation (and no event has occurred which, with notice or the lapse of time or both, would constitute a default or violation) of any term, condition or provision of (i) the organizational documents of the Issuer, (ii) any loan or credit agreement, note, bond, mortgage, indenture, lease or other agreement, permit, franchise or license to which the Issuer with is now a party or by which the U.S. Securities and Exchange Commission Issuer’s properties or assets are bound or (the “SEC”iii) since January 13any statute or any judgment, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements order, rule or regulation of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereofany court or governmental agency or body, there are no material outstanding domestic or unresolved comments in comment letters received by foreign, having jurisdiction over the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to or any of its properties, except, in the SEC Reportscase of clauses (ii) and (iii), for defaults or violations that have not had and would not be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect.
(f) g. The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the execution, delivery and performance by the Issuer of this Subscription Agreement (including, without limitation, the issuance of the Equity Support Shares pursuant to this Equity Support AgreementAcquired Shares), other than (i) filings the filing with the SECSecurities and Exchange Commission (the “Commission”) of the Registration Statement (as defined below), (ii) filings required by applicable state or federal securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support Agreement; 9(n), (iv) those required by The the Nasdaq Stock Global Market LLC(the “Nasdaq”), including with respect to obtaining approval of the Issuer’s stockholdersstockholder approval, and (v) those the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
h. The authorized capital stock of the Issuer consists of (gi) 100,000,000 shares of Series A common stock, (ii) 10,000,000 shares of Series B common stock, and (iii) 1,000,000 shares of preferred stock, in each case, par value $0.0001 per share. As of the date hereofof this Subscription Agreement, the 8,167,390 shares of Series A common stock and 1 share of Series B common stock are issued and outstanding, all of which are validly issued, fully paid and non-assessable.
i. The Issuer has not received any written communication communication, from a governmental authority entity that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not, individually or in the aggregate, be reasonably expected to have a Material Adverse Effect.
j. The issued and outstanding Series A Shares are registered pursuant to Section 12(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and are listed for trading on the Nasdaq. There is no suit, action, proceeding or investigation pending or, to the knowledge of the Issuer, threatened against the Issuer by the Nasdaq or the Commission with respect to any intention by such entity to deregister the Series A Shares or prohibit or terminate the listing of the Series A Shares on the Nasdaq, except as disclosed in the Issuer’s SEC Documents (as defined below). The Issuer has taken no action that is designed to terminate the registration of the Series A Shares under the Exchange Act.
k. Assuming the accuracy of Subscriber’s representations and warranties set forth in Section 4, no registration under the Securities Act is required for the offer and sale of the Acquired Shares by the Issuer to Subscriber in the manner contemplated by this Subscription Agreement.
l. Neither the Issuer nor any person acting on its behalf has engaged or will engage in any form of general solicitation or general advertising (within the meaning of Regulation D of the Securities Act) in connection with any offer or sale of the Acquired Shares.
m. Omitted
n. The Issuer has made available to Subscriber (including via the Commission’s XXXXX system) a copy of each form, report, statement, schedule, prospectus, proxy, registration statement and other document, if any, filed by the Issuer with the Commission since its initial registration of the Series A Shares (the “SEC Documents”), which SEC Documents, as of their respective filing dates, complied in all material respects with the requirements of the Exchange Act applicable to the SEC Documents and the rules and regulations of the Commission promulgated thereunder applicable to the SEC Documents. None of the SEC Documents filed under the Exchange Act (except to the extent that information contained in any SEC Document has been superseded by a later timely filed SEC Document) contained, when filed any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; provided, that, with respect to the proxy statement to be filed by the Issuer with respect to the Transaction or any of its affiliates included in any SEC Document or filed as an exhibit thereto, the representation and warranty in this sentence is made to the Issuer’s knowledge. Other than as disclosed in the Issuer’s SEC Documents, the Issuer has timely filed each report, statement, schedule, prospectus, and registration statement that the Issuer was required to file with the Commission since its inception. There are no material outstanding or unresolved comments in comment letters from the Staff of the Commission with respect to any of the SEC Documents.
o. Except for such matters as have not had and would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, there is no (i) proceeding pending, or, to the knowledge of the Issuer, threatened against the Issuer or (ii) judgment, decree, injunction, ruling or order of any governmental entity or arbitrator outstanding against the Issuer.
(h) Assuming the accuracy p. Except for placement fees payable to Brookline Capital Markets, a division of each Subscriber’s representations and warranties set forth Arcadia Securities, LLC, in Section 6 of this Equity Support Agreement, no registration under the Securities Act of 1933, its capacity as amended (the “Securities Act”), is required placement agent for the offer and sale of the Equity Support Acquired Shares by (in such capacity, the “Placement Agent”), the Issuer to each Subscribers.
(i) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction Closingnot paid, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under obligated to pay, any obligation to pay any brokerbrokerage, finder’s or other commission or similar fee or commission in connection with the its issuance and sale of the Equity Support Acquired Shares.
(l) The Issuer is not, and the Issuer after the consummation of the transaction contemplated herebyincluding, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As any fee or commission payable to any stockholder or affiliate of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third partiesIssuer.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Samples: Subscription Agreement (Atlantic Coastal Acquisition Corp. II)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers the Subscriber and to the Placement Agents that:
(a) The Issuer has been duly incorporated and as of the date hereof, is validly existing as an exempted company duly incorporated, validly existing and in good standing under the laws of the Cayman Islands. The Issuer has all , with corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. .
(b) As of the Closing DateSubscription Closing, the Issuer will shall be duly incorporated, incorporated and validly existing and as a corporation in good standing under the laws of the Cayman IslandsState of Delaware, with corporate power and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Subscription Agreement.
(bc) As of the Closing DateSubscription Closing, all the Equity Support Acquired Shares will be duly authorized and, when issued and delivered to each Subscriber against full payment therefor in accordance with the terms of this Equity Support Subscription Agreement, the Equity Support Acquired Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum and articles certificate of association incorporation (as in effect at such time of issuance) or under the Companies Act, as amended, laws of the Cayman IslandsState of Delaware.
(cd) This Equity Support Subscription Agreement has been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Subscription Agreement constitutes the valid and binding agreement of each Subscriber, this Equity Support Subscription Agreement is enforceable against the Issuer in accordance with its terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or and (ii) principles of equity, whether considered at law or equity.
(de) The execution, delivery and performance of this Subscription Agreement (including compliance by the Issuer with all of the provisions hereof), the issuance and sale by the Issuer of all the Equity Support Acquired Shares pursuant to this Equity Support Agreement, and the performance consummation of its obligations hereunder and under each Pledge Agreement and Control Agreement and the other transactions contemplated thereby, herein will not (i) conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that subject, which would reasonably be expected to have a material adverse effect on the business, financial condition condition, or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), ) or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with the terms of its obligations under this Equity Support Subscription Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have a Material Adverse Effect or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Subscription Agreement.
(ef) As There are no securities or instruments issued by or to which the Issuer is a party containing anti-dilution or similar provisions that will be triggered by the issuance of their respective filing dates, all reports required (i) the Acquired Shares or (ii) the shares to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect issued pursuant to any of Other Subscription Agreement that have not been or will not be validly waived on or prior to the SEC ReportsClosing Date.
(fg) The Issuer is not in default or violation (and no event has occurred that, with notice or the lapse of time or both, would constitute a default or violation) of any term, condition or provision of (i) the organizational documents of the Issuer, (ii) any loan or credit agreement, note, bond, mortgage, indenture, lease or other agreement, permit, franchise or license to which the Issuer is now a party or by which the Issuer’s properties or assets are bound or (iii) any statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties, except, in the case of clauses (ii) and (iii), for defaults or violations that have not had and would not be reasonably likely to have, individually or in the aggregate, a Material Adverse Effect.
(h) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the execution, delivery and performance by the Issuer of this Subscription Agreement (including, without limitation, the issuance of the Equity Support Shares pursuant to this Equity Support AgreementAcquired Shares), other than (i) filings the filing with the SECCommission of the Registration Statement (as defined below), (ii) the filings required by applicable state securities laws, (iii) the filing of a Notice of Exempt Offering of Securities on Form D with the Commission under Regulation D of the Securities Act, (iv) the filings required in accordance with Section 16 8(s) of this Equity Support Subscription Agreement; , (ivv) those required by The Nasdaq the New York Stock Market LLCExchange (the “NYSE”), including with respect to obtaining approval of the Issuer’s stockholdersstockholder approval, and (vvi) those the failure of which to obtain would not be reasonably be expected likely to have, individually or in the aggregate, a Material Adverse Effect.
(gi) As of the date hereofof this Subscription Agreement, the authorized capital shares of the Issuer consists of (i) 200,000,000 Class A Ordinary Shares; (ii) 20,000,000 Class F Ordinary Shares; and (iii) 1,000,000 preference shares, par value $0.0001 per share (“Preference Shares”). As of the date hereof: (i) no Preference Shares are issued and outstanding; (ii) 45,000,000 Class A Ordinary Shares are issued and outstanding; (iii) 11,250,000 Class F Ordinary Shares are issued and outstanding; and (iv) 16,333,333 warrants to purchase 16,333,333 Class A Ordinary Shares are outstanding.
(j) The Issuer has not received any written communication from a governmental authority entity that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation violation, would not reasonably be expected to have, individually or in the aggregate, be reasonably likely to have a Material Adverse Effect.
(hk) The issued and outstanding Class A Ordinary Shares are registered pursuant to Section 12(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and are listed for trading on the NYSE under the symbol “PACE”. Following the Domestication, the Acquired Shares are expected to be registered under the Exchange Act and to be listed for trading on the NYSE. Except as otherwise disclosed by the Issuer in the SEC Documents (as defined below), there is no suit, action, proceeding or investigation pending or, to the knowledge of the Issuer, threatened against the Issuer by the NYSE or the Commission with respect to any intention by such entity to deregister the Class A Ordinary Shares or prohibit or terminate the listing of the Class A Ordinary Shares on the NYSE, excluding, for the purposes of clarity, the customary ongoing review of the NYSE in connection with the Business Combination. The Issuer has taken no action that is designed to terminate the registration of the Class A Ordinary Shares under the Exchange Act prior to the Subscription Closing, other than in connection with the Domestication and subsequent registration under the Exchange Act of the Class A Shares.
(l) Assuming the accuracy of each Subscriber’s representations and warranties set forth in Section 6 4 of this Equity Support Subscription Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Acquired Shares by the Issuer to each SubscribersSubscriber.
(im) Neither the Issuer nor any person acting on its behalf has offered engaged or sold the Equity Support Shares by will engage in any form of general solicitation or general advertising in violation (within the meaning of Regulation D of the Securities Act.
(j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the any offer or sale of the Equity Support Acquired Shares.
(l) The Issuer is not, and the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither Following the Issuer nor Subscription Closing, the Issuer after Acquired Shares will not be subject to any Transfer Restriction. The term “Transfer Restriction” means any condition to or restriction on the consummation ability of the transaction contemplated hereby (as applicableundersigned to pledge, following sell, assign or otherwise transfer the Collateral Account DepositAcquired Shares under any organizational document or agreement of, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, by or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, but excluding the SPAC, restrictions on transfer described in Section 4(f) hereof with respect to the shareholders status of the Issuer or Acquired Shares as “restricted securities” pending their registration for resale under the shareholders of Securities Act in accordance with the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach terms of this Section 5(o)Subscription Agreement.
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Samples: Subscription Agreement (TPG Pace Tech Opportunities Corp.)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers Subscriber that:
(a) a. The Issuer has been duly incorporated and is an exempted company duly incorporated, validly existing and as a corporation in good standing under the laws of the Cayman Islands. The Issuer has all State of Delaware, with corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, .
b. The Acquired Shares have been duly authorized by the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As of the Closing Date, all the Equity Support Shares will be duly authorized and, when issued and delivered to each Subscriber against full payment therefor for the Acquired Shares in accordance with the terms of this Equity Support AgreementSubscription Agreement and registered with the Issuer’s transfer agent, the Equity Support Acquired Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum certificate of incorporation and articles of association (as in effect at such time of issuance) bylaws any agreement or instrument to which the Issuer is a party or by which the Issuer is bound, or under the Companies Act, as amended, laws of the Cayman IslandsState of Delaware.
c. This Subscription Agreement, the Other Subscription Agreements and the Merger Agreement (ccollectively, the “Transaction Documents”) This Equity Support Agreement has have been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Agreement constitutes the valid and binding agreement of each Subscriber, this Equity Support Agreement is are enforceable against the Issuer in accordance with its their respective terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or and (ii) principles of equity, whether considered at law or equity.
(d) d. The issuance execution and sale delivery by the Issuer of all the Equity Support Shares pursuant to this Equity Support AgreementTransaction Documents, and the performance by the Issuer of its obligations hereunder under the Transaction Documents, including the issuance and under each Pledge Agreement sale of the Acquired Shares and Control the compliance by the Issuer with all of the provisions of this Subscription Agreement and the consummation of the transactions herein will be done in accordance with the New York Stock Exchange (the “NYSE”) marketplace rules, and the consummation of the other transactions contemplated therebyherein, do not and will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreementsubject; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that that, in the cases of clauses (i) and (iii), would reasonably be expected to have have, individually or in the aggregate, a material adverse effect on the business, properties, financial condition, stockholders’ equity or results of operations of the Issuer (a “Material Adverse Effect Effect”) or materially affect the validity or enforceability of the Equity Support Acquired Shares or the ability or legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Subscription Agreement.
e. There are no securities or instruments issued by or to which the Issuer is a party containing anti-dilution or similar provisions that will be triggered by the issuance of (ei) As of their respective filing datesthe Acquired Shares, all reports required (ii) the Class A Shares to be filed by issued pursuant to any Other Subscription Agreement or (iii) any securities to be issued pursuant to the Issuer with the U.S. Securities and Exchange Commission Forward Purchase Agreement, dated June 30, 2020 (the “SECForward Purchase Agreement”) since January 13), 2021 (among the “SEC Reports”) complied in all material respects with the applicable requirements Issuer, EcoR1 Panacea Holdings, LLC, and each of the Exchange Act other entities signatory thereto, that have not been or will not be validly waived on or prior to the Closing Date.
f. The Issuer is not in default or violation (and no event has occurred which, with notice or the rules and regulations lapse of time or both, would constitute a default or violation) of any term, condition or provision of (i) the organizational documents of the SEC promulgated thereunder. As of the date hereofIssuer, there are no material outstanding (ii) any loan or unresolved comments in comment letters received by credit agreement, note, bond, mortgage, indenture, lease or other agreement, permit, franchise or license to which the Issuer from is now a party or by which the staff Issuer’s properties or assets are bound or (iii) any statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Division of Corporation Finance of the SEC with respect to Issuer or any of its properties, except, in the SEC Reportscase of clauses (ii) and (iii), for defaults or violations that have not had and would not be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect.
(f) g. The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the execution, delivery and performance by the Issuer of this Subscription Agreement (including, without limitation, the issuance of the Equity Support Shares pursuant to this Equity Support AgreementAcquired Shares), other than (i) filings the filing of a Notice of Exempt Offering of Securities on Form D with the SECCommission under Regulation D of the Securities Act, (ii) the filing with the Commission of the Registration Statement (as defined below), (iii) the filings required by applicable state or federal securities laws, (iiiiv) the filings required in accordance with Section 16 of this Equity Support Agreement; 10(n), (ivv) those required by The Nasdaq Stock Market LLCthe NYSE, including with respect to obtaining approval of the Issuer’s stockholdersstockholder approval, and (vvi) those any consent, waiver, authorization or order of, notice to, or filing or registration, the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
h. The authorized capital stock of the Issuer as of the date hereof consists of (gi) 5,000,000 shares of preferred stock, par value $0.0001 per share (“Preferred Stock”), (ii) 500,000,000 Class A Shares and (iii) 20,000,000 shares of Class B common stock, par value $0.0001 per share (“Class B Shares,” together with the Class A Shares, the “Common Stock”). As of the date hereof and as of immediately prior to the Closing: (i) no shares of Preferred Stock are issued and outstanding, (ii) 14,862,500 Class A Shares are issued and outstanding, (iii) 3,593,750 Class B Shares are issued and outstanding, and (iv) 4,954,167 warrants, each entitling the holder thereof to purchase one Class A Share at an exercise price of $11.50 per Class A Share, are outstanding. All (i) issued and outstanding Common Stock have been duly authorized and validly issued, are fully paid and non-assessable and are not subject to preemptive rights and (ii) outstanding warrants have been duly authorized and validly issued, are fully paid and are not subject to preemptive rights. As of the date hereof, except as set forth above and pursuant to (i) the Other Subscription Agreements, or (ii) the Merger Agreement (including the exhibits and schedules thereto), there are no outstanding options, warrants or other rights to subscribe for, purchase or acquire from the Issuer any Class A Shares or other equity interests in the Issuer (collectively, “Equity Interests”) or securities convertible into or exchangeable or exercisable for Equity Interests. As of the date hereof, the Issuer has no subsidiaries other than Merger Sub and does not own, directly or indirectly, interests or investments (whether equity or debt) in any person, whether incorporated or unincorporated. There are no stockholder agreements, voting trusts or other agreements or understandings to which the Issuer is a party or by which it is bound relating to the voting of any Equity Interests, other than (A) as disclosed in the SEC Documents (as defined below) and (B) as contemplated by the Merger Agreement.
i. The Issuer has not received any written communication from a governmental authority entity that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not, individually or in the aggregate, be reasonably expected to have a Material Adverse Effect.
j. The issued and outstanding Class A Shares are registered pursuant to Section 12(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and are listed for trading on the NYSE. There is no suit, action, proceeding or investigation pending or, to the knowledge of the Issuer, threatened against the Issuer by the NYSE or the Commission with respect to any intention by such entity to deregister the Class A Shares or prohibit or terminate the listing of the Class A Shares on the NYSE. The Issuer has taken no action that is designed to terminate the registration of the Class A Shares under the Exchange Act or the listing of the Class A Shares on the NYSE.
k. Assuming the accuracy of Subscriber’s representations and warranties set forth in Section 4, no registration under the Securities Act is required for the offer and sale of the Acquired Shares by the Issuer to Subscriber in the manner contemplated by this Subscription Agreement.
l. Neither the Issuer nor any person acting on its behalf has engaged or will engage in any form of general solicitation or general advertising (within the meaning of Regulation D of the Securities Act) in connection with any offer or sale of the Acquired Shares.
m. Neither the Issuer nor any person acting on its behalf has offered any securities of the Issuer for sale or solicited any offer to buy any securities of the Issuer nor has the Issuer entered into any subscription agreement, side letter or similar agreement with any investor in connection with such investor’s direct or indirect investment in the Issuer other than (i) the Merger Agreement, (ii) the Other Subscription Agreements and (iii) the Forward Purchase Agreement. The Other Subscription Agreements have not been amended in any material respect following the date of this Subscription Agreement and reflect the same Share Purchase Price and terms that are no more favorable to any such Other Subscriber thereunder than the terms of this Subscription Agreement.
n. The Issuer has made available to Subscriber (including via the Commission’s XXXXX system) a copy of each form, report, statement, schedule, prospectus, proxy, registration statement and other document, if any, filed by the Issuer with the Commission since its initial registration of the Class A Shares (the “SEC Documents”), which SEC Documents, as of their respective filing dates, complied in all material respects with the requirements of the Exchange Act or the Securities Act applicable to the SEC Documents and the rules and regulations of the Commission promulgated thereunder applicable to the SEC Documents. None of the SEC Documents filed under the Exchange Act or the Securities Act (except to the extent that information contained in any SEC Document has been superseded by a later timely filed SEC Document) contained, when filed any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. The Issuer has timely filed each report, statement, schedule, prospectus, and registration statement that the Issuer was required to file with the Commission since its inception. There are no material outstanding or unresolved comments in comment letters from the Staff of the Commission with respect to any of the SEC Documents. The financial statements of the Issuer included in the SEC Documents comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing and fairly present in all material respects the financial position of the Issuer as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, year-end audit adjustments.
o. Except for such matters as have not had and would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, there is no (i) proceeding pending, or, to the knowledge of the Issuer, threatened against the Issuer or (ii) judgment, decree, injunction, ruling or order of any governmental entity or arbitrator outstanding against the Issuer.
(h) Assuming the accuracy of each Subscriber’s representations p. Except for placement fees payable to Xxxxx and warranties set forth Company, LLC, in Section 6 of this Equity Support Agreement, no registration under the Securities Act of 1933, its capacity as amended (the “Securities Act”), is required placement agent for the offer and sale of the Equity Support Acquired Shares by (in such capacity, the “Placement Agent”), the Issuer to each Subscribers.
(i) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction Closingnot paid, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under obligated to pay, any obligation to pay any brokerbrokerage, finder’s or other commission or similar fee or commission in connection with the its issuance and sale of the Equity Support Acquired Shares.
(l) The Issuer is not, and the Issuer after the consummation of the transaction contemplated herebyincluding, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, any fee or commission payable to any stockholder or affiliate, as defined in Rule 144 under the ATM Agreement is expressly permitted Securities Act (“Affiliate”), of the Issuer.
q. Issuer acknowledges and discussingagrees that, negotiatingnotwithstanding anything herein to the contrary, and closing such the Acquired Shares may be pledged by Subscriber in connection with a facility bona fide margin agreement, which shall not be deemed to be a breach transfer, sale or assignment of the Acquired Shares hereunder, and Subscriber effecting a pledge of Acquired Shares shall not require Subscriber to provide Issuer with any notice thereof or otherwise make any delivery to Issuer pursuant to this Section 5(o)Subscription Agreement. Issuer hereby agrees to execute and deliver such documentation as a pledgee of the Acquired Shares may reasonably request in connection with a pledge of the Acquired Shares to such pledgee by Subscriber.
(pr. No “bad actor” disqualifying event described in Rule 506(d)(1)(i)-(viii) As of the date hereofSecurities Act (a “Disqualification Event”) is applicable to the Issuer or, each to the Issuer’s knowledge, any Issuer Covered Person, except for a Disqualification Event as to which Rule 506(d)(2)(ii-iv) or (d)(3), is applicable. “Issuer Covered Person” means, with respect to the Issuer as an “issuer” for purposes of Rule 506 promulgated under the Securities Act, any person listed in the first paragraph of Rule 506(d)(1). The Issuer represents that it has exercised reasonable care to determine the accuracy of the Issuer and representation made by the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by in this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third partiesparagraph.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers that:
(a) a. The Issuer has been duly incorporated and is an exempted company duly incorporated, validly existing and as a corporation in good standing under the laws of the Cayman Islands. The Issuer has all State of Delaware, with corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As of the Closing Date, all the Equity Support b. The Acquired Shares will be have been duly authorized and, when issued and delivered to each Subscriber against full payment therefor for the Acquired Shares in accordance with the terms of this Equity Support Subscription Agreement, the Equity Support Acquired Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum certificate of incorporation and articles of association (as in effect at such time of issuance) bylaws or under the Companies Act, as amended, laws of the Cayman IslandsState of Delaware.
c. This Subscription Agreement, the Other Subscription Agreements and the Combination Agreement (ccollectively, the “Transaction Documents”) This Equity Support Agreement has have been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Agreement constitutes and the Transaction Documents constitute the valid and legally binding agreement obligation of each Subscriberthe Issuer, this Equity Support Agreement is enforceable against the Issuer in accordance with its their terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or generally and (ii) principles of equity, whether considered at law or equity.
(d) d. The issuance execution and sale delivery by the Issuer of all the Equity Support Shares pursuant to this Equity Support AgreementTransaction Documents, and the performance by the Issuer of its obligations hereunder under the Transaction Documents, including the issuance and under each Pledge Agreement and Control Agreement sale of the Acquired Shares and the consummation of the other transactions contemplated therebyherein, do not and will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that subject, which would reasonably be expected to have have, individually or in the aggregate, a material adverse effect on the business, properties, financial condition condition, stockholders’ equity or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), ) or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under the terms of this Equity Support Subscription Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have have, individually or in the aggregate, a Material Adverse Effect or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Subscription Agreement.
e. There are no securities or instruments issued by or to which the Issuer is a party containing anti-dilution or similar provisions that will be triggered by the issuance of (ei) As of their respective filing dates, all reports required the Acquired Shares or (ii) the Class A Shares to be filed by issued pursuant to any Other Subscription Agreement, in each case, that have not been or will not be validly waived on or prior to the Closing Date.
f. The Issuer is not in default or violation (and no event has occurred which, with notice or the lapse of time or both, would constitute a default or violation) of any term, condition or provision of (i) the organizational documents of the Issuer, (ii) any loan or credit agreement, note, bond, mortgage, indenture, lease or other agreement, permit, franchise or license to which the Issuer with is now a party or by which the U.S. Securities and Exchange Commission Issuer’s properties or assets are bound or (the “SEC”iii) since January 13any statute or any judgment, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements order, rule or regulation of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereofany court or governmental agency or body, there are no material outstanding domestic or unresolved comments in comment letters received by foreign, having jurisdiction over the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to or any of its properties, except, in the SEC Reportscase of clauses (ii) and (iii), for defaults or violations that have not had and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(f) g. The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the execution, delivery and performance by the Issuer of this Subscription Agreement (including, without limitation, the issuance of the Equity Support Shares pursuant to this Equity Support AgreementAcquired Shares), other than (i) filings the filing with the SECSecurities and Exchange Commission (the “Commission”) of the Registration Statement (as defined below), (ii) filings required by applicable state or federal securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support Agreement; 9(m), (iv) those required by The Nasdaq Stock Market LLCthe NYSE, including with respect to obtaining approval of the Issuer’s stockholdersstockholder approval, and (v) those the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse EffectEffect or have a material adverse effect of the Issuer’s ability to consummate the transactions contemplated hereby, including the sale and issuance of the Acquired Shares.
h. The authorized capital stock of the Issuer consists of (gi) 1,000,000 shares of preferred stock, par value $0.0001 per share (“Preferred Stock”), (ii) 200,000,000 Class A Shares and (iii) 20,000,000 shares of Class B common stock, par value $0.0001 per share (“Class B Shares”). As of the date hereofhereof and as of immediately prior to the Closing: (A) no shares of Preferred Stock are issued and outstanding, (B) 31,411,763 Class A Shares are issued and outstanding, (C) 7,852,941 Class B Shares are issued and outstanding and (D) 15,992,155 warrants, each entitling the holder thereof to purchase one Class A Share at an exercise price of $11.50 per Class A Share, are outstanding.
i. The Issuer has not received any written communication from a governmental authority entity that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
j. The issued and outstanding Class A Shares are registered pursuant to Section 12(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and are listed for trading on the NYSE. There is no suit, action, proceeding or investigation pending or, to the knowledge of the Issuer, threatened against the Issuer by the NYSE or the Commission with respect to any intention by such entity to deregister the Class A Shares or prohibit or terminate the listing of the Class A Shares on the NYSE. The Issuer has taken no action that is designed to terminate the registration of the Class A Shares under the Exchange Act.
k. Assuming the accuracy of Subscriber’s representations and warranties set forth in Section 4, no registration under the Securities Act is required for the offer and sale of the Acquired Shares by the Issuer to Subscriber in the manner contemplated by this Subscription Agreement.
l. Neither the Issuer nor any person acting on its behalf has engaged or will engage in any form of general solicitation or general advertising (within the meaning of Regulation D of the Securities Act) in connection with any offer or sale of the Acquired Shares.
m. Neither the Issuer nor NGP Switchback, LLC, a Delaware limited liability company (the “Sponsor”) has entered into any subscription agreement, side letter or other agreement with any Other Subscriber or any other investor in connection with such Other Subscriber’s or investor’s direct or indirect investment in the Issuer other than (i) the Combination Agreement, (ii) the Other Subscription Agreements, (iii) that certain letter agreement, dated July 25, 2019, by and among the Sponsor, the Issuer and the other parties thereto and (iv) that certain founders stock letter agreement, to be dated the date hereof, by and among the Sponsor, the Issuer and the other parties thereto. The Other Subscription Agreements have not been amended in any material respect following the date of this Subscription Agreement and reflect the same Share Purchase Price and terms that are no more favorable to any such Other Subscriber thereunder than the terms of this Subscription Agreement.
n. The Issuer has made available to Subscriber (including via the Commission’s XXXXX system) a copy of each form, report, statement, schedule, prospectus, proxy, registration statement and other document, if any, filed by the Issuer with the Commission since its initial registration of the Class A Shares (the “SEC Documents”), which SEC Documents, as of their respective filing dates, complied in all material respects with the requirements of the Exchange Act applicable to the SEC Documents and the rules and regulations of the Commission promulgated thereunder applicable to the SEC Documents. None of the SEC Documents filed under the Exchange Act (except to the extent that information contained in any SEC Document has been superseded by a later timely filed SEC Document) contained, when filed any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein not misleading, in the case of any SEC Document that is a registration statement, or included, when filed any untrue statement of a material fact or omitted to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in the case of all other SEC Documents; provided, that, with respect to the proxy statement to be filed by the Issuer with respect to the Transaction or any of its affiliates included in any SEC Document or filed as an exhibit thereto, the representation and warranty in this sentence is made to the Issuer’s knowledge. The Issuer has timely filed each report, statement, schedule, prospectus and registration statement that the Issuer was required to file with the Commission since its inception. There are no material outstanding or unresolved comments in comment letters from the Staff of the Commission with respect to any of the SEC Documents.
o. Except for such matters as have not had and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, there is no (i) proceeding pending, or, to the knowledge of the Issuer, threatened against the Issuer or (ii) judgment, decree, injunction, ruling or order of any governmental entity or arbitrator outstanding against the Issuer.
(h) Assuming the accuracy of each Subscriber’s representations p. Except for placement fees payable to Xxxxxxx Sachs & Co. LLC, BofA Securities, Inc., and warranties set forth Xxxxxxxxxxx & Co. Inc., in Section 6 of this Equity Support Agreement, no registration under the Securities Act of 1933, their capacity as amended (the “Securities Act”), is required placement agents for the offer and sale of the Equity Support Acquired Shares by (in such capacity, the “Placement Agents”), the Issuer to each Subscribers.
(i) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction Closingnot paid, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under obligated to pay, any obligation to pay any brokerbrokerage, finder’s or other commission or similar fee or commission in connection with the its issuance and sale of the Equity Support Acquired Shares.
(l) The Issuer is not, and the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Samples: Subscription Agreement (Switchback Energy Acquisition Corp)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers that:
(a) The Issuer is an exempted company duly incorporated, a corporation registered and validly existing and in good standing under the laws of the Cayman Islands. The Issuer has all Xxxxxxxxxx Xxxxxxxxxxxx Xxx 0000 (Cth) (“Corporations Act”), with corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and as shall be conducted following the Business Combination and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As The Subscriber will acquire at the Subscription Closing (i) the full legal and beneficial ownership of the Closing DateAcquired Shares free and clear of all encumbrances, all subject to the Equity Support registration of the Subscriber in the register of shareholders; (ii) the Acquired Shares will be that have been duly authorized andand validly issued by the Issuer; (iii) the Acquired Shares free of competing rights, when issued including pre-emptive rights or rights of first refusal; and delivered to each Subscriber against (iv) the Acquired Shares that are fully paid and have no money owing in respect of them (assuming full payment therefor in accordance with the terms of this Equity Support Subscription Agreement, the Equity Support Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum and articles of association (as in effect at such time of issuance) or under the Companies Act, as amended, of the Cayman Islands).
(c) This Equity Support Subscription Agreement, Other Subscription Agreements, if any, entered into on or prior to the date hereof, and the Business Combination Agreement has (collectively, the “Initial Transaction Documents”) have been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Agreement constitutes Issuer. The Initial Transaction Documents constitute the valid and legally binding agreement obligation of each Subscriberthe Issuer, this Equity Support Agreement is enforceable against the Issuer in accordance with its their terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or and (ii) principles of equity, whether considered at law or equity.
(d) The issuance Share Transfer Agreement to be entered into by and sale between DCRN, the Issuer and certain existing shareholders of Tritium on or prior to the Closing Date (the “Share Transfer Agreement” and together with the Initial Transaction Documents, the “Transaction Documents”) has been duly authorized by the Issuer. When duly executed and delivered, the Share Transfer Agreement will constitute the valid and legally binding obligation of the Issuer, enforceable against the Issuer in accordance with their terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, and (ii) principles of equity, whether considered at law or equity.
(e) Assuming the accuracy of Subscriber’s representations and warranties set forth in Section 5 of this Subscription Agreement, the execution and delivery by the Issuer of all the Equity Support Shares pursuant to this Equity Support AgreementTransaction Documents, and the performance by the Issuer of its obligations hereunder under the Transaction Documents, including the issuance and under each Pledge Agreement and Control Agreement sale of the Acquired Shares and the consummation of the other transactions contemplated thereby, herein and therein do not and will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that subject, which would reasonably be expected to have have, individually or in the aggregate, a material adverse effect on the business, properties, financial condition condition, shareholders’ equity or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), ) or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under the terms of this Equity Support Subscription Agreement; (ii) result in any violation the constitution of the provisions of Issuer as amended or varied from time to time (the “Constitution”) or other organizational documents (as applicable) of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have have, individually or in the aggregate, a Material Adverse Effect or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Subscription Agreement.
(e) As of their respective filing dates, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any of the SEC Reports.
(f) The There are no securities or instruments issued by or to which the Issuer is a party containing anti-dilution or similar provisions that will be triggered by the issuance of (i) the Acquired Shares or (ii) the Ordinary Shares to be issued pursuant to any Other Subscription Agreement, in each case, that have not been or will not be validly waived on or prior to the Closing Date.
(g) Assuming the accuracy of Subscriber’s representations and warranties set forth in Section 5 of this Subscription Agreement, the Issuer is not in default or violation (and no event has occurred which, with notice or the lapse of time or both, would constitute a default or violation) of any term, condition or provision of (i) the organizational documents of the Issuer, (ii) any loan or credit agreement, guarantee, note, bond, mortgage, indenture, lease or other agreement, permit, franchise or license to which the Issuer is now a party or by which the Issuer’s properties or assets are bound or (iii) any statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties, except, in the case of clauses (ii) and (iii), for defaults or violations that have not had and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(h) Assuming the accuracy of Subscriber’s representations and warranties set forth in Section 5 of this Subscription Agreement, the Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the execution, delivery and performance by the Issuer of this Subscription Agreement (including, without limitation, the issuance of the Equity Support Shares pursuant to this Equity Support AgreementAcquired Shares), other than (i) filings the filing with the SECCommission of the Registration Statement (as defined below), (ii) filings required by applicable U.S. state or federal or Australian securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support Agreement; by the Exchange, and (iv) those required by The Nasdaq Stock Market LLCconsents or filings, including with respect to obtaining approval of the Issuer’s stockholders, and (v) those the failure of which to obtain or file would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse EffectEffect or have a material adverse effect on the Issuer’s ability to consummate the transactions contemplated hereby, including the sale and issuance of the Acquired Shares.
(gi) As of the date hereof and as of immediately prior to the Closing Date, the share capital of the Company comprises one (1) Ordinary Share. Pursuant to and subject to the terms of the Share Transfer Agreement, each share in the capital of Tritium will be transferred to the Issuer in exchange for the issue of one Ordinary Share. As of the date of this Subscription Agreement, the Issuer had no outstanding indebtedness and will not have any outstanding long-term indebtedness as of immediately prior to the Closing Date (other than indebtedness incurred in accordance with the terms of the Business Combination Agreement to be repaid on or immediately following the Closing Date in connection with the consummation of the transactions contemplated by the Business Combination Agreement). All issued Ordinary Shares have been duly authorized and validly issued, are fully paid and are non-assessable and are not subject to preemptive rights. Except as set forth above and pursuant to the Other Subscription Agreements and the Business Combination Agreement or as described in the SEC Documents (as defined below), there are no outstanding options, warrants or other rights to subscribe for, purchase or acquire from the Issuer any Ordinary Shares or other equity interests in the Issuer, or securities convertible into or exchangeable or exercisable for such equity interests. As of the date hereof, the Issuer has no subsidiaries (other than Merger Sub) and does not own, directly or indirectly, interests or investments (whether equity or debt) in any person, whether incorporated or unincorporated. There are no shareholder agreements, voting trusts or other agreements or understandings to which the Issuer is a party or by which it is bound relating to the voting of any securities of the Issuer, other than (A) as set forth in the SEC Documents and (B) as contemplated by the Business Combination Agreement. Notwithstanding the foregoing, after the date of this Subscription Agreement and before the Subscription Closing, certain other investors may enter into subscription agreements with DCRN and the Issuer substantially similar to this Subscription Agreement, pursuant to which such investors (the “Future Subscribers”) would agree to subscribe for and purchase, and the Issuer would agree to issue and sell to such Future Subscribers, on the Closing Date, Ordinary Shares at the Share Purchase Price.
(j) The Issuer has not received any written communication from a governmental authority that alleges entity alleging that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
(k) Assuming the accuracy of Subscriber’s representations and warranties set forth in Section 5 of this Subscription Agreement, no registration under the Securities Act is required for the offer and sale of the Acquired Shares by the Issuer to Subscriber in the manner contemplated by this Subscription Agreement.
(l) Neither the Issuer nor any person acting on its behalf has engaged or will engage in any form of general solicitation or general advertising (within the meaning of Regulation D of the Securities Act) in connection with any offer or sale of the Acquired Shares.
(m) Neither the Issuer nor DCRN has entered into any side letter or similar agreement with any other subscriber pursuant to Other Subscription Agreements or any other investor in connection with such investor’s direct or indirect investment in the Issuer other than (i) the Business Combination Agreement, (ii) the Other Subscription Agreements, (iii) agreements or forms thereof that have been publicly filed via the Commission’s XXXXX system, including filings made by either DCRN or the Issuer, and (iv) contracts with respect to the sale, supply, marketing or distribution of goods or services by operating companies. No Other Subscription Agreement (other than any Other Subscription Agreements entered into by investment companies registered under the Investment Company Act or investors advised by an investment adviser subject to regulation under the Investment Advisers Act solely to the extent contemplated by Section 2(a) hereof) contains terms (economic or otherwise) more favorable to any such other subscribers than as set forth in this Subscription Agreement. The Other Subscription Agreements have not been amended or waived in any material respect and reflect the same Share Purchase Price and economic terms that are no more favorable to any such Other Subscriber thereunder than the economic terms of this Subscription Agreement.
(n) There is no (i) suit, action, proceeding, or arbitration pending, or, to the Issuer’s knowledge, threatened against the Issuer or (ii) judgment, decree, injunction, ruling or order of any governmental entity or arbitrator outstanding against the Issuer, except for such matters as have not had and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(ho) Assuming The Issuer has not paid, and is not obligated to pay, any brokerage, finder’s or other commission or similar fee in connection with its issuance and sale of the accuracy of each Subscriber’s representations Acquired Shares, except for placement fees payable at the Subscription Closing to Credit Suisse Securities (USA) LLC (“Credit Suisse”) Citigroup Global Markets Inc. (“Citi”) and warranties set forth X.X. Xxxxxx Securities LLC (“X.X. Xxxxxx”) in Section 6 of this Equity Support Agreement, no registration under the Securities Act of 1933, their capacity as amended (the “Securities Act”), is required placement agents for the offer and sale of the Equity Support Acquired Shares by (in such capacity, the Issuer to “Placement Agents,” and each Subscribersa “Placement Agent”).
(ip) Neither None of the Issuer Issuer, its subsidiaries or any of their affiliates, nor any person acting on its their behalf has offered has, directly or sold indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would require registration of the Equity Support issuance of any of the Acquired Shares by any form of general solicitation or general advertising in violation under the Securities Act, whether through integration with prior offerings pursuant to Rule 502(a) of the Securities ActAct or otherwise.
(j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(kq) The Issuer is and its affiliates will not under any obligation to pay any broker’s fee directly or commission in connection with indirectly use the proceeds of the sale of the Equity Support Acquired Shares, or lend, contribute or otherwise make available such proceeds to a subsidiary, joint venture partner or other person or entity (i) to fund a person or entity named on an OFAC List (as defined below), (ii) that is owned or controlled by, or acting on behalf of, a person, that is named on an OFAC List, (iii) that is organized, incorporated, established, located, resident or born in, or a citizen, national, or the government, including any political subdivision, agency, or instrumentality thereof, of, Cuba, Iran, North Korea, Syria, the Crimea region of Ukraine, or any other country or territory embargoed or subject to substantial trade restrictions by the United States, (iv) that is a Designated National as defined in the Cuban Assets Control Regulations, 31 C.F.R. Part 515 or (v) that is a non-U.S. shell bank or providing banking services indirectly to a non-U.S. shell bank.
(lr) The Issuer is not, and immediately after receipt of payment by the Issuer after for the consummation of the transaction contemplated hereby, Acquired Shares will not be required to register as be, an “investment company” as such term is defined in within the meaning of the Investment Company Act of 1940, as amended.
(ms) The Issuer ishas made available to Subscriber (including via the Commission’s XXXXX system) a copy of each form, report, statement, schedule, prospectus, proxy, registration statement and other document, if any, filed by the Issuer after with the consummation Commission since the first date on which any class of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person securities of the Issuer was registered with the Commission, if any (the “Issuer Shareholder SEC Documents”) and/or ), which Issuer SEC Documents, as of their respective advisors (collectivelyfiling dates, complied in all material respects with the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit applicable requirements of the IssuerExchange Act, Securities Act, and the SPAC, applicable rules and regulations of the shareholders Commission promulgated thereunder. None of the Issuer SEC Documents filed under the Exchange Act (except to the extent that information contained in any Issuer SEC Document has been superseded by a later timely filed Issuer SEC Document) contained, when filed, any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the shareholders statements therein not misleading, in the case of any Issuer SEC Document that is a registration statement, or included, when filed, any untrue statement of a material fact or omitted to state a material fact necessary to make the statements therein, in the light of the SPACcircumstances under which they were made, not misleading, in the case of all other Issuer SEC Documents. For the avoidance of doubtThe Issuer has timely filed each report, the ATM Agreement is expressly permitted and discussingstatement, negotiatingschedule, prospectus, and closing such a facility shall not be a breach of this Section 5(o).
(p) As registration statement that the Issuer was required to file with the Commission since its inception. There are no material outstanding or unresolved comments in comment letters from the Staff of the date hereof, each Commission with respect to any of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third partiesSEC Documents.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Samples: Subscription Agreement (Decarbonization Plus Acquisition Corp II)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers Subscriber that:
(a) The Issuer is an exempted company duly incorporated, validly existing existing, and in good standing under the laws of the Cayman Islands. The Issuer Islands and has all the corporate power (corporate or otherwise) and authority to own, lease lease, and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Agreement. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As of the Closing Date, all the Equity Support The PIPE Shares will be have been duly authorized and, when issued and delivered to each Subscriber against full payment therefor in accordance with the terms of this Equity Support Agreement, the Equity Support PIPE Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum and articles of association (as in effect at such time of issuance) association, any investor rights or similar agreement or under the Companies Act, as amended, laws of the Cayman Islands.
(c) This Equity Support Agreement has been duly authorized, executed executed, and delivered by the Issuer and, assuming that this Equity Support Agreement constitutes the valid and binding agreement of each Subscriber, this Equity Support Agreement is enforceable against the Issuer in accordance with its terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or and (ii) principles of equity, whether considered at law or equity.
(d) The issuance and sale by Assuming the Issuer of all the Equity Support Shares pursuant to this Equity Support Agreement, and the performance of its obligations hereunder and under each Pledge Agreement and Control Agreement and the transactions contemplated thereby, will not conflict with or result in a breach or violation of any accuracy of the terms or provisions ofrepresentations and warranties of Subscriber in Section 5, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have a Material Adverse Effect or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreement.
(e) As of their respective filing dates, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any of the SEC Reports.
(f) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization organization, or other person in connection with the issuance of the Equity Support Shares pursuant to this Equity Support AgreementPIPE Shares, other than (i) the Required Company Shareholder Approval (as defined in the Merger Agreement), (ii) filings with the SEC, (iiiii) filings required by applicable state securities laws, (iiiiv) the filings required in accordance with Section 16 the terms of this Equity Support Agreement; , (ivv) those required by The Nasdaq Stock Market LLC, including with respect to obtaining approval of the Issuer’s stockholders, LLC (“Nasdaq”) and (vvi) those filings as to which the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effectmaterial adverse effect on the business, properties, financial condition, shareholders’ equity, or results of operations of the Issuer.
(ge) As The Issuer is in compliance with all applicable laws, except where such non-compliance would not reasonably be expected to have a material adverse effect on the business, properties, financial condition, shareholders’ equity or results of operations of the date hereof, the Issuer. The Issuer has not received any written communication from a governmental authority that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effectmaterial adverse effect on the business, properties, financial condition, shareholders’ equity, or results of operations of the Issuer.
(hf) The Issuer is not, and immediately after receipt of payment for the PIPE Shares, will not be, an “investment company” within the meaning of the Investment Company Act of 1940, as amended.
(g) Assuming the accuracy of each Subscriber’s representations and warranties set forth in Section 6 5, in connection with the offer, sale, and delivery of the PIPE Shares in the manner contemplated by this Equity Support Agreement, no registration it is not necessary to register the PIPE Shares under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support . The PIPE Shares by the Issuer to each Subscribers.
(i) Neither the Issuer nor any person acting on its behalf has were not offered or sold the Equity Support Shares to Subscriber by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Equity Support Shares.
(l) The Issuer is not, and the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands laware not being offered in a manner involving a public offering under, is and will be unable to pay its debts.
(o) The Issueror in a distribution in violation of, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly Securities Act or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o)state securities laws.
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Samples: Pipe Subscription Agreement (Gesher I Acquisition Corp.)
Issuer Representations and Warranties. The Issuer represents represents, warrants, covenants and warrants to each Subscribers agrees with the Treasurer that:
(a) The Issuer is an exempted company duly incorporated, validly existing and in good standing under the laws of the Cayman Islands. The Issuer has all power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Agreement. As of will be at the Closing Date, duly organized and existing under and by virtue of the Issuer will be duly incorporated, validly existing Constitution and in good standing under the laws of the Cayman Islands.State of Ohio and has full power and authority thereunder and under the Renewal Note Legislation: (i) to issue, sell and deliver the Notes to their original purchaser; (ii) to sell and deliver the Renewal Notes to the Treasurer as provided in Article III herein and (ii) to carry out and consummate all transactions contemplated by this Agreement and the Notes;
(b) As of the Closing Date, all the Equity Support Shares will be duly authorized and, when issued and When delivered to each Subscriber against full payment therefor and paid for by the Treasurer on the Renewal Date in accordance with the terms of this Equity Support Agreementprovisions hereof, the Equity Support Shares Renewal Notes will be validly issuedhave been duly authorized, fully paid executed, issued and non-assessable delivered and will not have been constitute legal, valid and binding obligations of the Issuer payable from the same sources as the Notes issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum and articles of association (as in effect at such time of issuance) or under the Companies Act, as amended, of the Cayman Islands.Note Legislation;
(c) This Equity Support Agreement has been duly authorizedThe execution and delivery of the Renewal Notes, executed and delivered by compliance with the Issuer andprovisions thereof, assuming that this Equity Support Agreement constitutes under the valid circumstances contemplated hereby and binding agreement of each Subscriberthereby, this Equity Support Agreement is enforceable against the Issuer in accordance with its terms, except as may be limited or otherwise affected by will not (i) bankruptcyviolate the Constitution or laws of the State of Ohio, insolvencyor any existing law, fraudulent conveyancerule, reorganizationregulation, moratorium order, writ, judgment, injunction, decree, or determination of any court, regulatory agency or other laws relating to or affecting governmental unit by which the rights of creditors generallyIssuer is bound, or (ii) principles of equityconflict with, whether considered at law or equity.
(d) The issuance and sale by the Issuer of all the Equity Support Shares pursuant to this Equity Support Agreement, and the performance of its obligations hereunder and under each Pledge Agreement and Control Agreement and the transactions contemplated thereby, will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default underunder any existing resolution, indenture of trust or mortgage, loan or credit agreement, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other existing agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer may be bound;
(d) No action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any of its subsidiaries is bound court, public board or to body, pending or threatened against the Issuer, which in any of way questions the property or assets powers of the Issuer is subject that would reasonably be expected referred to have a material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole in paragraph (a “Material Adverse Effect”)a) above, or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have a Material Adverse Effect or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreement.
(e) As of their respective filing dates, all reports required to be filed proceedings taken by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any of the SEC Reports.
(f) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the issuance of the Equity Support Shares pursuant to Notes, or wherein an unfavorable decision, ruling or finding would materially adversely affect the transactions contemplated by, or the validity or enforceability of, this Equity Support Agreement, other than (i) filings with the SEC, (ii) filings required by applicable state securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support Agreement; (iv) those required by The Nasdaq Stock Market LLC, including with respect to obtaining approval of the Issuer’s stockholders, and (v) those the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(g) As of the date hereofNotes, the Issuer has not received any written communication from a governmental authority that alleges that Renewal Notes or the Issuer is not in compliance with documents signed or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably to be expected to have, individually or in the aggregate, a Material Adverse Effect.
(h) Assuming the accuracy of each Subscriber’s representations and warranties set forth in Section 6 of this Equity Support Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Shares signed by the Issuer to each Subscribers.
(i) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale issuance of the Equity Support Shares.Notes or the Renewal Notes;
(le) The Issuer is nothas (i) duly authorized and approved the execution and delivery of, and the performance by the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Depositobligations contained in, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) isNotes, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for prior to their issuance, the purposes Issuer shall have duly authorized and approved the execution and delivery of, and the performance by the Issuer of Cayman Islands lawthe obligations contained in, is and will be unable to pay its debts.the Renewal Notes; and
(of) The IssuerAll approvals, consents and orders of any governmental authority, board, agency or commission having jurisdiction which would constitute a condition precedent to the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of performance by the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition obligations hereunder and expertise and (B) this Equity Support Agreement has under the Notes have been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) aboveobtained.
Appears in 1 contract
Samples: Standby Note Purchase Agreement
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers as of the date hereof and as of the Closing Date that:
(a) The Issuer has been duly incorporated and is validly existing as an exempted company duly incorporated, validly existing limited by shares and is in good standing under the laws of the Cayman Islands. The Issuer has all Bermuda, with company power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As Each subsidiary of the Closing Date, the Issuer will be has been duly incorporated, incorporated or formed and is validly existing and in good standing under the laws of its jurisdiction of incorporation or formation, except as would not reasonably be expected to have a material adverse effect on the Cayman Islandsbusiness, properties, financial condition, shareholders’ equity or results of operations of the Issuer (a “Material Adverse Effect”).
(b) As of the Closing Date, all the Equity Support Shares will be The Acquired Securities have been duly authorized and, when issued and delivered to each Subscriber against full payment therefor for the Acquired Securities in accordance with the terms of this Equity Support AgreementSubscription Agreement and duly registered, the Equity Support Acquired Securities will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s bye-laws or under the laws of Bermuda. The Underlying Common Shares have been duly authorized and reserved for issuance and, when issued and delivered to Subscriber against full payment therefore in accordance with the terms of the Certificate of Designations and the Warrant and duly registered, such Underlying Common Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum and articles of association (as in effect at such time of issuance) bye-laws or under the Companies Act, as amended, laws of the Cayman IslandsBermuda.
(c) This Equity Support Subscription Agreement has been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Agreement constitutes the valid and binding agreement of each Subscriber, this Equity Support Agreement is enforceable against the Issuer it in accordance with its terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or and (ii) principles of equity, whether considered at law or equity.
(d) The execution, delivery and performance of this Subscription Agreement (including compliance by the Issuer with all of the provisions hereof), the issuance and sale by of the Issuer of all the Equity Support Shares pursuant to this Equity Support Agreement, Acquired Securities and the performance consummation of its obligations hereunder and under each Pledge Agreement and Control Agreement and the other transactions contemplated thereby, herein will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any material indenture, mortgage, deed of trust, loan agreement, lease, license or other material agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”)subject, or materially affect the validity of the Equity Support Shares Acquired Securities or the legal authority of the Issuer to comply in all material respects with its obligations under the terms of this Equity Support Subscription Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have a Material Adverse Effect or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreementproperties.
(e) As of their respective filing dates, all reports required There are no securities or instruments issued by or to which the Issuer is a party containing anti-dilution or similar provisions that will be filed triggered by the Issuer with issuance of (i) the U.S. Acquired Securities and Exchange Commission or the Underlying Common Shares that have not been or will not be validly waived on or prior to the Closing Date.
(f) Other than the “SEC”) since January 13, 2021 Issuer’s outstanding Series A preference shares (which will be redeemed in full prior to the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereofClosing), there are no material outstanding Senior Shares or unresolved comments Parity Shares (as such terms are defined in comment letters received by the Issuer from the staff Certificate of the Division of Corporation Finance of the SEC with respect to any of the SEC ReportsDesignation).
(fg) The Issuer is not in default or violation (and no event has occurred which, with notice or the lapse of time or both, would constitute a default or violation) of any term, condition or provision of (i) the organizational documents of the Issuer, (ii) any loan or credit agreement, note, bond, mortgage, indenture, lease or other agreement, permit, franchise or license to which the Issuer is now a party or by which the Issuer’s properties or assets are bound or (iii) any statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties, except, in the case of clauses (ii) and (iii), for defaults or violations that have not had and would not be reasonably likely to have, individually or in the aggregate, a Material Adverse Effect.
(h) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the execution, delivery and performance by the Issuer of this Subscription Agreement (including, without limitation, the issuance of the Equity Support Shares pursuant to this Equity Support AgreementAcquired Securities or the Underlying Common Shares), other than (i) filings with required by the SECSecurities and Exchange Commission (the “Commission”), Nasdaq or the Financial Industry Regulatory Authority, (ii) filings required by applicable state securities or similar laws, (iii) the filings permissions of the Bermuda Monetary Authority in connection with the exchange control and requisite approvals/notifications required in accordance with Section 16 of this Equity Support Agreement; pursuant to the Insurance Xxx 0000, as amended and (iv) those required by The Nasdaq Stock Market LLCsuch consents, including with waivers, authorizations, orders, notices, filings or registrations as would not impair in any material respect to obtaining approval the consummation of the Issuer’s stockholders, and (v) those the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effecttransactions contemplated by this Subscription Agreement.
(g) As of the date hereof, the Issuer has not received any written communication from a governmental authority that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(hi) Assuming the accuracy of each Subscriber’s representations and warranties set forth in Section 6 4 of this Equity Support Subscription Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Shares Acquired Securities by the Issuer to each SubscribersSubscriber.
(ij) Neither the Issuer nor any person acting on its behalf has offered engaged or sold the Equity Support Shares by will engage in any form of general solicitation or general advertising in violation (within the meaning of Regulation D of the Securities Act.
(j) Following the Transaction Closing, the issued and outstanding Shares in connection with any offer or sale of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange ActAcquired Securities.
(k) The Issuer is not under any obligation has made available to pay any brokerSubscriber (including via the Commission’s fee or commission in connection with the sale XXXXX system) a copy of the Equity Support Sharespreliminary joint proxy statement/prospectus that forms a part of the Issuer’s registration statement on Form S-4 (File No. 333-226620) (the “Proxy Statement/Prospectus”). When filed, the Proxy Statement/Prospectus did not contain and, when amended, the Proxy Statement/Prospectus will not contain as of the date of such amendment with respect to those disclosures that are amended, any untrue statement of a material fact or any omission to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; provided, that the Issuer makes no such representation or warranty with respect to any information in the Proxy Statement/Prospectus relating to Easterly, Easterly’s affiliates or the special meeting of Easterly’s stockholders.
(l) Except for such matters as have not had and would not be reasonably likely to have, individually or in the aggregate, a Material Adverse Effect, there is no (i) action, lawsuit, claim, suit, arbitration, hearing, examination or judicial or legal proceeding or investigation, whether civil, criminal or administrative, at law or in equity, or by or before any governmental authority pending, or, to the knowledge of the Issuer, threatened against the Issuer or (ii) judgment, decree, injunction, ruling or order of any governmental entity or arbitrator outstanding against the Issuer.
(m) The consolidated financial statements (including the related notes thereto) of the Issuer and its consolidated subsidiaries included in the Proxy Statement/Prospectus present fairly in all material respects the financial position of the entities to which they relate as of the dates indicated and the results of their operations and the changes in their cash flows for the periods specified; such financial statements have been prepared in conformity with GAAP applied on a consistent basis throughout the periods covered thereby, and the supporting schedules present fairly in all material respects the information required to be stated therein. PricewaterhouseCoopers LLP, who has audited certain financial statements of the Issuer and its subsidiaries as set forth in the Proxy Statement/Prospectus is an independent registered public accounting firm with respect to the Issuer and its subsidiaries within the applicable rules and regulations adopted by the Commission and the Public Company Accounting Oversight Board (United States) and as required by the Securities Act.
(n) Since the date of the most recent balance sheet of the Issuer included in the Proxy Statement/Prospectus (i) there has not been any material change in the share capital or long-term debt of the Issuer or any of its subsidiaries, or any dividend or distribution of any kind declared, set aside for payment, paid or made by the Issuer on any class of share capital, or any material adverse change, or any development involving a prospective material adverse change, in or affecting the business, properties, rights, assets, management, financial position, results of operations or prospects of the Issuer and its subsidiaries taken as a whole; (ii) neither the Issuer nor any of its subsidiaries has entered into any transaction or agreement that is material to the Issuer and its subsidiaries taken as a whole or incurred any liability or obligation, direct or contingent, that is material to the Issuer and its subsidiaries taken as a whole; and (iii) neither the Issuer nor any of its subsidiaries has sustained any material loss or interference with its business from fire, explosion, flood or other calamity, whether or not covered by insurance, or from any labor disturbance or dispute or any action, order or decree of any court or arbitrator or governmental or regulatory authority, except in each case as otherwise disclosed in the Proxy Statement/Prospectus or as contemplated by this Subscription Agreement.
(o) The Issuer is not, and immediately after giving effect to the Issuer after the consummation issuance and sale of the transaction contemplated herebyAcquired Securities and the application of the proceeds thereof, will not be be, required to register as an “investment company” as such term is defined in within the meaning of the Investment Company Act of 1940, as amended, and the rules and regulations of the Commission thereunder.
(mp) The Issuer isExcept for placement agent fees payable to Citigroup Global Markets Inc. (“Citi”) and Xxxxxxx & Partners Securities, LLC (“D&P” and, together with Citi, in their respective capacities as placement agents with respect to the issuance and the Issuer after the consummation sale of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectivelyAcquired Securities, the “Project Maple PartiesPlacement Agents”) have notat the Closing, directly the Issuer has not paid, and is not obligated to pay, any brokerage, finder’s or indirectly, negotiated other fee or entered into an Excluded Financing commission in connection with any other parties for the benefit its issuance and sale of the IssuerAcquired Securities, the SPACincluding, the shareholders of the Issuer or the shareholders of the SPAC. For for the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As any fee or commission payable to any shareholder or affiliate of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third partiesIssuer.
(q) The Issuer is not (i) a person or entity named on the List of Specially Designated Nationals and Blocked Persons, the Executive Order 13599 List, the Foreign Sanctions Evaders List, or the Sectoral Sanctions Identification List, each of which is capable administered by the U.S. Treasury Department’s Office of evaluating independently Foreign Assets Control (“OFAC”) (collectively, the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement“OFAC Lists”); (ii) has determined based a person with whom a transaction is prohibited by Executive Order 13224, the BSA/Patriot Act, the Trading with the Enemy Act or the foreign asset control regulations of the United States Treasury Department; (iii) owned or controlled by, or acting on behalf of, a person, that is named on an OFAC List or a person under clause (ii); (iv) a person having its own independent review and such professional advice principal place of business or the majority of its business operations (measured by revenues) located in any country described in clause (ii); (v) organized, incorporated, established, located, resident or born in, or a citizen, national, or the government, including any political subdivision, agency, or instrumentality thereof, of, Cuba, Iran, North Korea, Syria, the Crimea region of Ukraine, or any other country or territory embargoed or subject to substantial trade restrictions by the United States; (vi) a Designated National as it deems appropriate that this Equity Support Agreement and defined in the transactions contemplated hereby are Cuban Assets Control Regulations, 31 C.F.R. Part 515; or (Avii) are fully consistent with its a non-U.S. shell bank or providing banking services indirectly to a non-U.S. shell bank. If the Issuer is a financial needsinstitution subject to the Bank Secrecy Act (31 U.S.C. section 5311 et seq.), objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to itas amended by the USA PATRIOT Act of 2001, and its implementing regulations (C) are a fitcollectively, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transactionthe “BSA/PATRIOT Act”), notwithstanding that the substantial risks inherent thereinIssuer maintains policies and procedures reasonably designed to comply with applicable obligations under the BSA/PATRIOT Act. To the extent required, the Issuer maintains policies and procedures reasonably designed to ensure compliance with OFAC-administered sanctions programs, including for the screening of its investors against the OFAC Lists. The Issuer does not and will not, directly or indirectly, do business in particular but without limitationor with Cuba or Venezuela, the provisions or with any agency or instrumentality of Sections 7either of them, 13 and 15in each case in violation of U.S. federal law.
(r) (i) The directors section of the Proxy Statement/Prospectus entitled “Description of Sirius Group Share Capital” accurately sets forth the classes and numbers of equity securities of the Issuer have concluded outstanding as of that date.
(As) the this Equity Support Agreement and the transactions contemplated hereby are suitable The Issuer is treated as a corporation for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) aboveU.S. federal income tax purposes.
Appears in 1 contract
Samples: Subscription Agreement (Sirius International Insurance Group, Ltd.)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers that:
(a) a. The Issuer has been duly incorporated and is an exempted company duly incorporated, validly existing and as a corporation in good standing under the laws of the Cayman Islands. The Issuer has all State of Delaware, with corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As of the Closing Date, all the Equity Support b. The Acquired Shares will be have been duly authorized and, when issued and delivered to each Subscriber against full payment therefor for the Acquired Shares in accordance with the terms of this Equity Support AgreementSubscription Agreement and registered with the Issuer’s transfer agent, the Equity Support Acquired Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum certificate of incorporation and articles of association (as in effect at such time of issuance) bylaws or under the Companies Act, as amended, laws of the Cayman IslandsState of Delaware.
c. This Subscription Agreement, the Other Subscription Agreements and the Combination Agreement (ccollectively, the “Transaction Documents”) This Equity Support Agreement has have been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Agreement constitutes the valid and binding agreement of each Subscriber, this Equity Support Agreement is are enforceable against the Issuer in accordance with its their respective terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or and (ii) principles of equity, whether considered at law or equity.
(d) d. The issuance execution and sale delivery by the Issuer of all the Equity Support Shares pursuant to this Equity Support AgreementTransaction Documents, and the performance by the Issuer of its obligations hereunder under the Transaction Documents, including the issuance and under each Pledge Agreement and Control Agreement sale of the Acquired Shares and the consummation of the other transactions contemplated therebyherein, do not and will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that subject, which would reasonably be expected to have have, individually or in the aggregate, a material adverse effect on the business, properties, financial condition condition, stockholders’ equity or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), ) or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under the terms of this Equity Support Subscription Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have have, individually or in the aggregate, a Material Adverse Effect or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Subscription Agreement.
e. There are no securities or instruments issued by or to which the Issuer is a party containing anti-dilution or similar provisions that will be triggered by the issuance of (ei) As of their respective filing datesthe Acquired Shares, all reports required (ii) the Class A Shares to be filed by issued pursuant to any Other Subscription Agreement or (iii) any securities to be issued pursuant to the Issuer with the U.S. Securities Amended and Exchange Commission Restated Forward Purchase Agreement, dated February 6, 2019 (the “SECForward Purchase Agreement”), among the Issuer, Tortoise Sponsor LLC and Atlas Point Energy Infrastructure Fund, LLC, in each case, that have not been or will not be validly waived on or prior to the Closing Date.
f. The Issuer is not in default or violation (and no event has occurred which, with notice or the lapse of time or both, would constitute a default or violation) since January 13of any term, 2021 condition or provision of (i) the “SEC Reports”) complied in all material respects with the applicable requirements organizational documents of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereofIssuer, there are no material outstanding (ii) any loan or unresolved comments in comment letters received by credit agreement, note, bond, mortgage, indenture, lease or other agreement, permit, franchise or license to which the Issuer from is now a party or by which the staff Issuer’s properties or assets are bound or (iii) any statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Division of Corporation Finance of the SEC with respect to Issuer or any of its properties, except, in the SEC Reportscase of clauses (ii) and (iii), for defaults or violations that have not had and would not be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect.
(f) g. The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the execution, delivery and performance by the Issuer of this Subscription Agreement (including, without limitation, the issuance of the Equity Support Shares pursuant to this Equity Support AgreementAcquired Shares), other than (i) filings the filing with the SECSecurities and Exchange Commission (the “Commission”) of the Registration Statement (as defined below), (ii) filings required by applicable state or federal securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support Agreement; 9(n), (iv) those required by The Nasdaq the New York Stock Market LLCExchange (the “NYSE”), including with respect to obtaining approval of the Issuer’s stockholdersstockholder approval, and (v) those the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
h. The authorized capital stock of the Issuer consists of (gi) 1,000,000 shares of preferred stock, par value $0.0001 per share (“Preferred Stock”), (ii) 200,000,000 Class A Shares and (iii) 20,000,000 shares of Class B common stock, par value $0.0001 per share (“Class B Shares”). As of the date hereofhereof and as of immediately prior to the Closing: (i) no shares of Preferred Stock are issued and outstanding, (ii) 23,300,917 Class A Shares are issued and outstanding, (iii) 5,825,230 Class B Shares are issued and outstanding, and (iv) 18,310,641 warrants, each entitling the holder thereof to purchase one Class A Share at an exercise price of $11.50 per Class A Share, are outstanding. As of March 31, 2020 and as of the Closing, the Issuer had and will have no outstanding long-term indebtedness (other than deferred underwriting fees and expenses deferred from its initial public offering).
i. The Issuer has not received any written communication since December 31, 2019, from a governmental authority entity that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not, individually or in the aggregate, be reasonably expected to have a Material Adverse Effect.
j. The issued and outstanding Class A Shares are registered pursuant to Section 12(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and are listed for trading on the NYSE. There is no suit, action, proceeding or investigation pending or, to the knowledge of the Issuer, threatened against the Issuer by the NYSE or the Commission with respect to any intention by such entity to deregister the Class A Shares or prohibit or terminate the listing of the Class A Shares on the NYSE. The Issuer has taken no action that is designed to terminate the registration of the Class A Shares under the Exchange Act.
k. Assuming the accuracy of Subscriber’s representations and warranties set forth in Section 4, no registration under the Securities Act is required for the offer and sale of the Acquired Shares by the Issuer to Subscriber in the manner contemplated by this Subscription Agreement.
l. Neither the Issuer nor any person acting on its behalf has engaged or will engage in any form of general solicitation or general advertising (within the meaning of Regulation D of the Securities Act) in connection with any offer or sale of the Acquired Shares.
m. The Issuer has not entered into any side letter or similar agreement with any Other Subscriber in connection with such Other Subscriber’s direct or indirect investment in the Issuer and no Other Subscription Agreement includes terms and conditions that are materially more advantageous to any such Other Subscriber than Subscriber hereunder. The Other Subscription Agreements have not been amended in any material respect following the date of this Subscription Agreement and reflect the same Share Purchase Price and terms that are no more favorable to any such Other Subscriber thereunder than the terms of this Subscription Agreement. Other than pursuant to the Forward Purchase Agreement, pursuant to which the Issuer may issue units comprised of Class A Shares and warrants, the Issuer has not agreed and will not agree to issue any warrants to any person in connection with the Transaction.
n. The Issuer has made available to Subscriber (including via the Commission’s XXXXX system) a copy of each form, report, statement, schedule, prospectus, proxy, registration statement and other document, if any, filed by the Issuer with the Commission since its initial registration of the Class A Shares (the “SEC Documents”), which SEC Documents, as of their respective filing dates, complied in all material respects with the requirements of the Exchange Act applicable to the SEC Documents and the rules and regulations of the Commission promulgated thereunder applicable to the SEC Documents. None of the SEC Documents filed under the Exchange Act (except to the extent that information contained in any SEC Document has been superseded by a later timely filed SEC Document) contained, when filed any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; provided, that, with respect to the proxy statement to be filed by the Issuer with respect to the Transaction or any of its affiliates included in any SEC Document or filed as an exhibit thereto, the representation and warranty in this sentence is made to the Issuer’s knowledge. The Issuer has timely filed each report, statement, schedule, prospectus, and registration statement that the Issuer was required to file with the Commission since its inception. There are no material outstanding or unresolved comments in comment letters from the Staff of the Commission with respect to any of the SEC Documents.
o. Except for such matters as have not had and would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, there is no (i) proceeding pending, or, to the knowledge of the Issuer, threatened against the Issuer or (ii) judgment, decree, injunction, ruling or order of any governmental entity or arbitrator outstanding against the Issuer.
(h) Assuming the accuracy of each Subscriber’s representations p. Except for placement fees payable to Barclays Capital Inc. and warranties set forth Xxxxxxx Sachs & Co. LLC, in Section 6 of this Equity Support Agreement, no registration under the Securities Act of 1933, their capacity as amended (the “Securities Act”), is required placement agents for the offer and sale of the Equity Support Acquired Shares by (in such capacity, the “Placement Agents”), the Issuer to each Subscribers.
(i) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction Closingnot paid, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under obligated to pay, any obligation to pay any brokerbrokerage, finder’s or other commission or similar fee or commission in connection with the its issuance and sale of the Equity Support Acquired Shares.
(l) The Issuer is not, and the Issuer after the consummation of the transaction contemplated herebyincluding, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As any fee or commission payable to any stockholder or affiliate of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third partiesIssuer.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Samples: Subscription Agreement (Tortoise Acquisition Corp.)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers the Investor that:
(a) a. The Issuer is an exempted company duly incorporated, validly existing and in good standing under the laws of the Cayman Islands. The Issuer has all power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. .
b. As of the Closing Date, subject to the Issuer will be duly incorporated, validly existing and in good standing under the laws receipt of the Cayman Islands.
(b) As Subscription Amount in accordance with the terms of this Subscription Agreement and registration on the Closing DateIssuer’s register of members, all the Equity Support Shares will be duly authorized and, when issued and delivered to each Subscriber the Investor against full payment therefor in accordance with the terms of this Equity Support AgreementSubscription Agreement and registered on the Issuer’s register of members, the Equity Support Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum and articles of association (as may be amended and/or restated from time to time) in effect at such time of issuance) on the Closing Date or under the Companies Act, Act (as amended, revised) of the Cayman Islands.
(c) c. This Equity Support Subscription Agreement has been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Subscription Agreement constitutes the valid and binding agreement of each Subscriberthe Investor, this Equity Support Subscription Agreement is enforceable against the Issuer in accordance with its terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or (ii) principles of equity, whether considered at law or equity.
(d) d. The issuance and sale of the Shares and the compliance by the Issuer with all of all the Equity Support Shares pursuant to provisions of this Equity Support Agreement, and the performance of its obligations hereunder and under each Pledge Agreement and Control Subscription Agreement and the consummation of the transactions contemplated thereby, herein will not (i) conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), or materially affect the validity of the Equity Support Shares or the legal authority ability of the Issuer to timely comply in all material respects with its obligations under the terms of this Equity Support AgreementSubscription Agreement (an “Issuer Material Adverse Effect”); (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have a Material Adverse Effect or materially affect the validity of the Equity Support Shares or the legal authority of the an Issuer to comply in all material respects with its obligations under this Equity Support Agreement.
(e) As of their respective filing dates, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any of the SEC Reports.
(f) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the issuance of the Equity Support Shares pursuant to this Equity Support Agreement, other than (i) filings with the SEC, (ii) filings required by applicable state securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support Agreement; (iv) those required by The Nasdaq Stock Market LLC, including with respect to obtaining approval of the Issuer’s stockholders, and (v) those the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(g) As of the date hereof, the Issuer has not received any written communication from a governmental authority that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(h) e. Assuming the accuracy of each Subscriberthe Investor’s representations and warranties set forth in Section 6 of this Equity Support Agreement6, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Shares by the Issuer to each Subscribers.
the Investor hereunder. The Shares (i) Neither the Issuer nor any person acting on its behalf has were not offered or sold the Equity Support Shares by any form of directed selling efforts, general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Equity Support Shares.
(l) The Issuer is not, and the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for to the purposes of Cayman Islands lawIssuer’s knowledge are not being offered in a manner involving a public offering under, is and will be unable to pay its debts.
(o) The Issueror in a distribution in violation of, the SPACSecurities Act, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPACstate securities laws. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently a “foreign issuer” as defined under the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.Regulation S.
Appears in 1 contract
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers as of the date hereof and the Closing Date, that:
(a) a. The Issuer has been duly incorporated and is an exempted company duly incorporated, validly existing and as a corporation in good standing under the laws of the Cayman Islands. The Issuer has all State of Delaware, with corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. .
b. As of the Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As of the Closing Date, all the Equity Support Acquired Shares will be have been duly authorized and, when issued and delivered to each Subscriber against full payment therefor for the Acquired Shares in accordance with the terms of this Equity Support Subscription Agreement, the Equity Support Acquired Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum certificate of incorporation and articles of association bylaws (as in effect at such time of issuance) or under the Companies Act, as amended, laws of the Cayman IslandsState of Delaware.
c. This Subscription Agreement, the Other Subscription Agreements and the Combination Agreement (ccollectively, the “Transaction Documents”) This Equity Support Agreement has have been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Agreement constitutes and the Transaction Documents constitute the valid and legally binding agreement obligation of each Subscriberthe Issuer, this Equity Support Agreement is enforceable against the Issuer in accordance with its their respective terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or generally and (ii) principles of equity, whether considered at law or equity.
(d) The issuance d. Assuming the accuracy of Subscriber’s representations and sale warranties in Section 4, the execution and delivery by the Issuer of all the Equity Support Shares pursuant to this Equity Support AgreementTransaction Documents, and the performance by the Issuer of its obligations hereunder under the Transaction Documents, including the issuance and under each Pledge Agreement and Control Agreement sale of the Acquired Shares and the transactions contemplated therebyconsummation of the Transaction, do not and will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that subject, which would reasonably be expected to have have, individually or in the aggregate, a material adverse effect on the business, properties, financial condition condition, stockholders’ equity or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), ) or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under the terms of this Equity Support Subscription Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have have, individually or in the aggregate, a Material Adverse Effect or materially affect the validity of the Equity Support Acquired Shares or the legal authority of the Issuer to comply in all material respects with its obligations under the terms of this Equity Support Subscription Agreement.
e. There are no securities or instruments issued by or to which the Issuer is a party containing anti-dilution or similar provisions that will be triggered by the issuance of (ei) As of their respective filing dates, all reports required the Acquired Shares or (ii) the Class A Shares to be filed by issued pursuant to any Other Subscription Agreement, in each case, that have not been or will not be validly waived on or prior to the Closing Date.
f. The Issuer is not in default or violation (and no event has occurred which, with notice or the lapse of time or both, would constitute a default or violation) of any term, condition or provision of (i) the organizational documents of the Issuer, (ii) any loan or credit agreement, note, bond, mortgage, indenture, lease or other agreement, permit, franchise or license to which the Issuer with is now a party or by which the U.S. Securities and Exchange Commission Issuer’s properties or assets are bound or (the “SEC”iii) since January 13any statute or any judgment, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements order, rule or regulation of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereofany court or governmental agency or body, there are no material outstanding domestic or unresolved comments in comment letters received by foreign, having jurisdiction over the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to or any of its properties, except, in the SEC Reportscase of clauses (ii) and (iii), for defaults or violations that have not had and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(f) The g. Assuming the accuracy of Subscriber’s representations and warranties in Section 4, the Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization (including the Nasdaq) or other person in connection with the execution, delivery and performance by the Issuer of this Subscription Agreement (including, without limitation, the issuance of the Equity Support Shares pursuant to this Equity Support AgreementAcquired Shares), other than (i) filings the filing with the SECSecurities and Exchange Commission (the “Commission”) of the Registration Statement (as defined below), (ii) the filings required by applicable state or federal securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support Agreement; 9.n, (iv) those required by The Nasdaq Stock Market LLCthe Nasdaq, including with respect to obtaining approval of the Issuer’s stockholdersstockholder approval, and (v) those the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse EffectEffect or have a material adverse effect on the Issuer’s ability to consummate the transactions contemplated hereby, including the sale and issuance of the Acquired Shares.
(g) h. As of the date hereof, the authorized capital stock of the Issuer consists of (i) 1,000,000 shares of preferred stock, par value $0.0001 per share (“Preferred Stock”), (ii) 200,000,000 Class A Shares and (iii) 20,000,000 shares of Class B common stock, par value $0.0001 per share, (“Class B Shares”). As of the date hereof and as of immediately prior to the Closing: (A) no shares of Preferred Stock are issued and outstanding, (B) 17,439,750 Class A Shares are issued and outstanding, (C) 4,312,500 Class B Shares are issued and outstanding and (D) 19,612,500 warrants, each entitling the holder thereof to purchase one Class A Share at an exercise price of $11.50 per Class A Share, are outstanding.
i. The Issuer has not received any written communication from a governmental authority entity that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
j. The issued and outstanding Class A Shares are registered pursuant to Section 12(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and are listed for trading on Nasdaq. There is no suit, action, proceeding or investigation pending or, to the knowledge of the Issuer, threatened against the Issuer by Nasdaq or the Commission with respect to any intention by such entity to deregister the Class A Shares or prohibit or terminate the listing of the Class A Shares on Nasdaq. Except in connection with the Transaction, the Issuer has taken no action that is designed to terminate the registration of the Class A Shares under the Exchange Act or the listing of the Class A Shares on the Nasdaq.
k. Assuming the accuracy of Subscriber’s representations and warranties set forth in Section 4, no registration under the Securities Act is required for the offer and sale of the Acquired Shares by the Issuer to Subscriber in the manner contemplated by this Subscription Agreement.
l. Neither the Issuer nor any person acting on its behalf has engaged or will engage in any form of general solicitation or general advertising (within the meaning of Regulation D of the Securities Act) in connection with any offer or sale of the Acquired Shares.
m. Neither the Issuer nor the Sponsor, has entered into any subscription agreement, side letter or other agreement with any Other Subscriber or any other investor in connection with such Other Subscriber’s or investor’s direct or indirect investment in the Issuer other than (i) the Combination Agreement and any other agreement contemplated or permitted by the Combination Agreement, (ii) the Other Subscription Agreements, (iii) that certain letter agreement, dated August 12, 2021, by and among the Sponsor, the Issuer and the other parties thereto, (iv) that certain letter agreement with the Sponsor, to be dated as of the date hereof, (v) that certain letter agreement with the underwriters in the Issuer’s initial public offering, to be dated as of the date hereof and (vi) agreements or forms thereof that have been publicly filed via the Commission’s XXXXX system, including filings made by the Issuer.
n. The Issuer has made available to Subscriber (including via the Commission’s XXXXX system) a copy of each form, report, statement, schedule, prospectus, proxy, registration statement and other document, if any, filed by the Issuer with the Commission since its initial registration of the Class A Shares (the “SEC Documents”), which SEC Documents, as of their respective filing dates, complied in all material respects with the requirements of the Exchange Act applicable to the SEC Documents and the rules and regulations of the Commission promulgated thereunder applicable to the SEC Documents. None of the SEC Documents filed under the Exchange Act (except to the extent that information contained in any SEC Document has been superseded by a later timely filed SEC Document) contained, when filed, any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein not misleading, in the case of any SEC Document that is a registration statement, or included, when filed, any untrue statement of a material fact or omitted to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in the case of all other SEC Documents; provided, that, with respect to the proxy statement to be filed by the Issuer with respect to the Transaction or any of its affiliates included in any SEC Document or filed as an exhibit thereto, the representation and warranty in this sentence is made to the Issuer’s knowledge.
o. Except for such matters as have not had and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, as of the date hereof, there is no (i) proceeding pending, or, to the knowledge of the Issuer, threatened against the Issuer or (ii) judgment, decree, injunction, ruling or order of any governmental entity or arbitrator outstanding against the Issuer.
(h) Assuming the accuracy of each Subscriber’s representations and warranties set forth p. Except for any placement fees payable to Imperial Capital, LLC, in Section 6 of this Equity Support Agreement, no registration under the Securities Act of 1933, its capacity as amended (the “Securities Act”), is required placement agent for the offer and sale of the Equity Support Acquired Shares by (in such capacity, the “Placement Agent”), the Issuer to each Subscribers.
(i) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following the Transaction Closingnot paid, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under obligated to pay, any obligation to pay any brokerbrokerage, finder’s or other commission or similar fee or commission in connection with the its issuance and sale of the Equity Support Acquired Shares.
(l) The Issuer is not, and the Issuer after the consummation of the transaction contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers the Backstop Investor that:
(a) The Issuer is an exempted company duly incorporated, validly existing and in good standing under the laws of the Cayman IslandsIslands (to the extent such concept exists in such jurisdiction). The Issuer has all power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Backstop Subscription Agreement. As of the Closing Date, following the Domestication, Issuer will be duly incorporated, validly existing as a corporation and in good standing under the laws of the Cayman IslandsState of Delaware.
(b) As of the Closing Date, all the Equity Support Backstop Shares will be duly authorized and, when issued and delivered to each Subscriber the Backstop Investor against full payment therefor in accordance with the terms of this Equity Support Backstop Subscription Agreement, the Equity Support Backstop Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum and articles certificate of association incorporation (as in effect at such time of issuance) ), by contract or under the Companies Act, as amended, of the Cayman IslandsDelaware General Corporation Law.
(c) This Equity Support Backstop Subscription Agreement has been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Backstop Subscription Agreement constitutes the valid and binding agreement of each Subscriberthe Backstop Investor, this Equity Support Backstop Subscription Agreement is enforceable against the Issuer in accordance with its terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or (ii) principles of equity, whether considered at law or equity.
(d) The issuance execution and sale by the Issuer of all the Equity Support Shares pursuant to this Equity Support Agreementdelivery of, and the performance of its obligations hereunder and under each Pledge Agreement and Control Agreement and the transactions contemplated therebyby, this Backstop Subscription Agreement, including the issuance and sale by Issuer of the Backstop Shares pursuant to this Backstop Subscription Agreement will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), or materially affect the validity of the Equity Support Backstop Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Backstop Subscription Agreement; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have a Material Adverse Effect or materially affect the validity of the Equity Support Backstop Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Backstop Subscription Agreement.
(e) As of their respective filing dates, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13July 24, 2021 2020 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Securities Act of 1933, as amended, (the “Securities Act”) and the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations of the SEC promulgated thereunder, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. The financial statements of Issuer included in the SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations of the SEC with respect thereto as in effect at the time of filing and fairly present in all material respects the financial position of Issuer as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, year-end audit adjustments. A copy of each SEC Report is available to the Backstop Investor via the SEC’s EXXXX system. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any of the SEC Reports.
(f) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the issuance of the Equity Support Backstop Shares pursuant to this Equity Support Backstop Subscription Agreement, other than (i) filings with the SEC, (ii) filings required by applicable state securities laws, (iii) the filings required in accordance with Section 16 13 of this Equity Support Backstop Subscription Agreement; (iv) those required by The Nasdaq Stock Market LLC, including with respect to obtaining approval of the Issuer’s stockholders, and (v) those the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(g) As of the date hereof, the Issuer has not received and, to Issuer’s knowledge, there is not threatened any written communication from a governmental authority that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. Issuer is in compliance with all applicable laws, except where such non-compliance would not reasonably be expected to have a Material Adverse Effect.
(h) Assuming the accuracy of each Subscriberthe Backstop Investor’s representations and warranties set forth in Section 6 of this Equity Support Backstop Subscription Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Backstop Shares by the Issuer to each Subscribersthe Backstop Investor.
(i) Neither the Issuer nor any person acting on its behalf has offered or sold the Equity Support Backstop Shares by any form of general solicitation or general advertising in violation of the Securities Act.
(j) Following As of the date of this Backstop Subscription Agreement, the authorized capital stock of Issuer consists of (i) 500,000,000 Class A ordinary shares, (ii) 50,000,000 Class B ordinary shares and (iii) 5,000,000 preference shares, each with a par value of $0.0001 per share. As of the date of this Backstop Subscription Agreement, (A) 23,000,000 Class A ordinary shares of Issuer are issued and outstanding, (B) 5,750,000 Class B ordinary shares of Issuer are issued and outstanding, (C) 18,100,000 warrants to purchase Class A ordinary shares of Issuer are issued and outstanding, and (D) no preference shares are issued and outstanding. All
(1) issued and outstanding Class A ordinary shares and Class B ordinary shares of Issuer have been duly authorized and validly issued, are fully paid and are nonassessable and are not subject to preemptive rights and (2) outstanding warrants have been duly authorized and validly issued and are not subject to preemptive rights. Except as set forth above and pursuant to the Other Subscription Agreements, this Backstop Subscription Agreements, the Transaction ClosingAgreement and the other agreements and arrangements referred to therein or in the SEC Reports, as of the date hereof, there are no outstanding options, warrants or other rights to subscribe for, purchase or acquire from Issuer any Class A ordinary shares, Class B ordinary shares or other equity interests in Issuer, or securities convertible into or exchangeable or exercisable for such equity interests. As of the date hereof, Issuer has no subsidiaries, other than Merger Sub, and does not own, directly or indirectly, interests or investments (whether equity or debt) in any person, whether incorporated or unincorporated. There are no shareholder agreements, voting trusts or other agreements or understandings to which Issuer is a party or by which it is bound relating to the voting of any securities of Issuer, other than (1) as set forth in the SEC Reports and (2) as contemplated by the Transaction Agreement.
(k) As of the date hereof, the issued and outstanding Shares Class A ordinary shares of the Issuer will be are registered pursuant to Section 12(b) of the Exchange Act. Following the ClosingDomestication, the Equity Support Backstop Shares are expected to be registered under the Exchange Act. As of the date hereof, there is no suit, action, proceeding or investigation pending or, to the knowledge of Issuer, threatened against Issuer by Nasdaq or the SEC, respectively, to prohibit or terminate the listing of Issuer’s Backstop Shares on Nasdaq or to deregister the Backstop Shares under the Exchange Act. Issuer has taken no action that is designed to terminate the registration of the Backstop Shares under the Exchange Act.
(kl) The Issuer has not entered into any agreement or arrangement entitling any agent, broker, investment banker, financial advisor or other person to any broker’s or finder’s fee or any other commission or similar fee in connection with the transactions contemplated by this Backstop Subscription Agreement for which the undersigned could become liable. Other than the Placement Agents (as defined below), Issuer is not under aware of any obligation to pay any broker’s fee person that has been or commission will be paid (directly or indirectly) remuneration for solicitation of purchasers in connection with the sale of the Equity Support any Backstop Shares.
(lm) The Issuer is not, and immediately after receipt of payment for the Issuer after the consummation of the transaction contemplated hereby, Backstop Shares will not be required to register as be, an “investment company” as such term is defined in within the meaning of the Investment Company Act of 1940, as amended.
(mn) The Other than the Other Subscription Agreements, the Transaction Agreement and any other agreement contemplated by the Transaction Agreement, Issuer is, and the has not entered into any side letter or similar agreement with any Other Investor or any other investor in connection with such Other Investor’s or investor’s direct or indirect investment in Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) any side letter or similar agreement relating to the transfer to any investor of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) issecurities of Issuer by existing securityholders of Issuer, which may be effectuated as a forfeiture to Issuer and reissuance, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for securities to be issued to the purposes direct or indirect securityholders of Cayman Islands lawthe Company pursuant to the Transaction Agreement). Each of the Other Subscription Agreements related to the private placement of shares reflect the same Per Share Subscription Price. None of the Other Subscription Agreements includes terms and conditions that are materially more advantageous to any such other investor than the Backstop Investor hereunder, is and such Other Subscription Agreements will be unable to pay its debtsnot, and as of the Closing Date, have not been amended or modified in any material respect following the date of this Backstop Subscription Agreement.
(o) The Issuer acknowledges and agrees that, notwithstanding anything herein to the contrary, the Backstop Shares may be pledged by Backstop Investor in connection with a bona fide margin agreement, provided such pledge shall be (i) pursuant to an available exemption from the registration requirements of the Securities Act or (ii) pursuant to, and in accordance with, a registration statement that is effective under the Securities Act at the time of such pledge, and the Backstop Investor effecting a pledge of Backstop Shares shall not be required to provide Issuer with any notice thereof; provided, however, that neither Issuer, the SPACCompany or their respective counsels shall be required to take any action (or refrain from taking any action) in connection with any such pledge, Cartesian Capital Group, LLCother than providing any such lender of such margin agreement with an acknowledgment that the Backstop Shares are not subject to any contractual prohibition on pledging or lock up, the indirect controlling person form of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected acknowledgment to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected subject to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with comment by Issuer in all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15respects.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
Appears in 1 contract
Samples: Backstop Subscription Agreement (ACE Convergence Acquisition Corp.)
Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers Subscriber that:
(a) a. The Issuer has been duly incorporated and is an exempted company duly incorporated, validly existing and as a corporation in good standing under the laws of the Cayman Islands. The Issuer has all State of Delaware, with corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement. As of the Closing Date, .
b. The Acquired Shares have been duly authorized by the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As of the Closing Date, all the Equity Support Shares will be duly authorized and, when issued and delivered to each Subscriber against full payment therefor for the Acquired Shares in accordance with the terms of this Equity Support AgreementSubscription Agreement and registered with the Issuer’s transfer agent, the Equity Support Acquired Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s memorandum certificate of incorporation and articles of association (as in effect at such time of issuance) bylaws or under the Companies Act, as amended, laws of the Cayman IslandsState of Delaware.
c. This Subscription Agreement, the Other Subscription Agreements and the Merger Agreement (ccollectively, the “Transaction Documents”) This Equity Support Agreement has have been duly authorized, executed and delivered by the Issuer and, assuming that this Equity Support Agreement constitutes the valid and binding agreement of each Subscriber, this Equity Support Agreement is are enforceable against the Issuer in accordance with its their respective terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or and (ii) principles of equity, whether considered at law or equity.
(d) d. The issuance execution and sale delivery by the Issuer of all the Equity Support Shares pursuant to this Equity Support AgreementTransaction Documents, and the performance by the Issuer of its obligations hereunder under the Transaction Documents, including the issuance and under each Pledge Agreement and Control Agreement sale of the Acquired Shares and the consummation of the other transactions contemplated therebyherein, do not and will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), or materially affect the validity of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreementsubject; (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any law, statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that that, in the cases of clauses (i) and (iii), would reasonably be expected to have have, individually or in the aggregate, a material adverse effect on (A) the business, properties, financial condition, stockholders’ equity or results of operations of the Issuer (a “Material Adverse Effect Effect”) or materially affect the validity or enforceability of the Equity Support Acquired Shares or (B) the ability or legal authority of the Issuer to (I) comply in all material respects with its obligations under this Equity Support AgreementSubscription Agreement and (II) consummate the transactions contemplated hereby, including the issuance and sale of the Acquired Shares.
e. There are no securities or instruments issued by or to which the Issuer is a party containing anti-dilution or similar provisions that will be triggered by the issuance of (ei) As of their respective filing datesthe Acquired Shares, all reports required (ii) the Class A Shares to be filed by issued pursuant to any Other Subscription Agreement or (iii) any securities to be issued pursuant to the Forward Purchase Agreement, dated February 26, 2019 (as amended, the “Forward Purchase Agreement”), among the Issuer and Crescent Capital Group LP, that have not been or will not be validly waived on or prior to the Closing Date.
f. The Issuer is not in default or violation (and no event has occurred which, with notice or the U.S. Securities and Exchange Commission lapse of time or both, would constitute a default or violation) of any term, condition or provision of (i) the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements organizational documents of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereofIssuer, there are no material outstanding (ii) any loan or unresolved comments in comment letters received by credit agreement, note, bond, mortgage, indenture, lease or other agreement, permit, franchise or license to which the Issuer from is now a party or by which the staff Issuer’s properties or assets are bound or (iii) any statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Division of Corporation Finance of the SEC with respect to Issuer or any of its properties, except, in the SEC Reportscase of clauses (ii) and (iii), for defaults or violations that have not had and would not be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect.
(f) g. The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the execution, delivery and performance by the Issuer of this Subscription Agreement (including, without limitation, the issuance of the Equity Support Shares pursuant to this Equity Support AgreementAcquired Shares), other than (i) filings the filing with the SECSecurities and Exchange Commission (the “Commission”) of the Registration Statement (as defined below), (ii) the filings required by applicable state or federal securities laws, (iii) the filings required in accordance with Section 16 of this Equity Support Agreement; 9(n), (iv) those required by The the Nasdaq Stock Market LLC(“Nasdaq”), including with respect to obtaining approval of the Issuer’s stockholdersstockholder approval, and (v) those any consent, waiver, authorization or order of, notice to, or filing or registration, the failure of which to obtain would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
h. The authorized capital stock of the Issuer as of the date hereof consists of (gi) 5,000,000 shares of preferred stock, par value $0.0001 per share (“Preferred Stock”), (ii) 500,000,000 Class A Shares and (iii) 25,000,000 shares of Class F common stock, par value $0.0001 per share (“Class F Shares”). As of the date hereof: (i) no shares of Preferred Stock are issued and outstanding, (ii) 25,000,000 Class A Shares are issued and outstanding, (iii) 6,250,000 Class F Shares are issued and outstanding, (iv) 19,500,000 warrants, each of which entitles the holder thereof to purchase one Class A Share at an exercise price of $11.50 per Class A Share, are outstanding.
i. The Issuer has not received any written communication from a governmental authority entity that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not, individually or in the aggregate, be reasonably expected to have a Material Adverse Effect.
j. The issued and outstanding Class A Shares are registered pursuant to Section 12(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and are listed for trading on Nasdaq and, upon consummation of the Transactions, will continue to be so registered and listed. There is no suit, action, proceeding or investigation pending or, to the knowledge of the Issuer, threatened against the Issuer by Nasdaq or the Commission with respect to any intention by such entity to deregister the Class A Shares or prohibit or terminate the listing of the Class A Shares on Nasdaq. The Issuer has taken no action that is designed to terminate the registration of the Class A Shares under the Exchange Act or the listing of the Class A Shares on Nasdaq.
k. Assuming the accuracy of Subscriber’s representations and warranties set forth in Section 4, no registration under the Securities Act is required for the offer and sale of the Acquired Shares by the Issuer to Subscriber in the manner contemplated by this Subscription Agreement.
l. Neither the Issuer nor any person acting on its behalf has engaged or will engage in any form of general solicitation or general advertising (within the meaning of Regulation D of the Securities Act) in connection with any offer or sale of the Acquired Shares.
m. The Issuer has not entered into any subscription agreement, side letter or understanding, or similar agreement with any investor in connection with such investor’s direct or indirect investment in the Issuer other than (i) the Merger Agreement, (ii) the Other Subscription Agreements and (iii) the Forward Purchase Agreement. The Other Subscription Agreements have not been amended in any material respect following the date of this Subscription Agreement and reflect the same Share Purchase Price and material terms that are no more favorable in the aggregate to any such Other Subscriber thereunder than the terms of this Subscription Agreement.
n. The Issuer has made available to Subscriber (including via the Commission’s XXXXX system) a copy of each form, report, statement, schedule, prospectus, proxy, registration statement and other document, if any, filed by the Issuer with the Commission since its initial registration of the Class A Shares (the “SEC Documents”), which SEC Documents, as of their respective filing dates, complied in all material respects with the requirements of the Exchange Act or the Securities Act applicable to the SEC Documents and the rules and regulations of the Commission promulgated thereunder applicable to the SEC Documents. None of the SEC Documents filed under the Exchange Act or the Securities Act (except to the extent that information contained in any SEC Document has been superseded by a later timely filed SEC Document) contained, when filed any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. The Issuer has timely filed each report, statement, schedule, prospectus, and registration statement that the Issuer was required to file with the Commission since its inception. There are no material outstanding or unresolved comments in comment letters from the Staff of the Commission with respect to any of the SEC Documents. The financial statements of the Issuer included in the SEC Documents comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing and fairly present in all material respects the financial position of the Issuer as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, year-end audit adjustments.
o. Except for such matters as have not had and would not be reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, there is no (i) proceeding pending, or, to the knowledge of the Issuer, threatened against the Issuer or (ii) judgment, decree, injunction, ruling or order of any governmental entity or arbitrator outstanding against the Issuer.
p. Except for placement fees payable to Credit Suisse Securities (hUSA) Assuming the accuracy of each Subscriber’s representations LLC and warranties set forth BofA Securities, Inc., in Section 6 of this Equity Support Agreement, no registration under the Securities Act of 1933, their capacities as amended (the “Securities Act”), is required placement agents for the offer and sale of the Equity Support Acquired Shares by (in such capacities, the “Placement Agents”), the Issuer has not paid, and is not obligated to each Subscribers.
(i) Neither the Issuer nor pay, any person acting on brokerage, finder’s or other commission or similar fee in connection with its behalf has offered or sold the Equity Support Shares by any form of general solicitation or general advertising in violation issuance and sale of the Securities Act.
(j) Following Acquired Shares, including, for the Transaction Closingavoidance of doubt, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission payable to any stockholder or affiliate, as defined in connection with Rule 144 under the sale Securities Act (“Affiliate”), of the Equity Support SharesIssuer.
(l) q. The Issuer is not, and immediately after receipt of payment for the Issuer after the consummation of the transaction contemplated herebyAcquired Shares, will not be required to register as be, an “investment company” as such term is defined in within the meaning of the Investment Company Act of 1940, as amended.
(m) The Issuer is, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o).
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
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Issuer Representations and Warranties. The Issuer represents and warrants to each Subscribers the Subscriber that:
(a) a. The Issuer is an exempted company duly incorporated, validly existing and is in good standing under the laws of the Cayman Islands. The Issuer has all State of Delaware, with corporate power (corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Equity Support Subscription Agreement and the Transaction Agreement. Other than Merger Sub, CallCo, ExchangeCo and any other direct or indirect subsidiaries of the Issuer formed or that may be formed for purposes of effecting the Transaction (collectively, “Issuer Merger Subsidiaries”), the Issuer does not have any other subsidiaries and does not directly or indirectly own any equity or similar interest in, or any interest convertible into or exchangeable or exercisable for any equity or similar interest in, any corporation, partnership, joint venture or business association or other person.
b. As of the Transaction Closing Date, the Issuer will be duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.
(b) As of the Closing Date, all the Equity Support Shares will be duly authorized by the Issuer and issued in compliance in all material respects with applicable law and the Issuer’s charter, and, when issued and delivered to each the Subscriber against full payment therefor in accordance with the terms of this Equity Support Subscription Agreement, the Equity Support Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any statutory or contractual preemptive or similar rights created under the Issuer’s memorandum and articles of association (as in effect at such time of issuance) or under the Companies Act, as amended, of the Cayman Islandsrights.
(c) c. This Equity Support Subscription Agreement has and the Transaction Agreement have been duly authorized, executed and delivered by the Issuer and, assuming that assuming, with respect to this Equity Support Agreement constitutes Subscription Agreement, the valid due authorization, execution and binding agreement delivery of each the same by the Subscriber, this Equity Support Subscription Agreement is enforceable against and the Transaction Agreement are the legally binding obligations of the Issuer and are enforceable in accordance with its their respective terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or (ii) principles of equity, whether considered at law or equity.
d. As of immediately prior to the Transaction Closing, the authorized share capital of the Issuer will consist of 1,000 shares of Common Stock, of which 100 shares of Common Stock will be issued and outstanding. As of immediately prior to the Subscription Closing, all of the issued and outstanding shares of Common Stock will have been duly authorized and validly issued and will be fully paid and non-assessable and have not been issued in violation of any preemptive or similar rights. Each share of Common Stock will have been issued in compliance in all material respects with applicable law and the Issuer’s charter (d) as in effect at the time of such issuance).
e. The execution, delivery and performance of the Subscription Agreement and the Transaction Agreement, the issuance and sale by of the Issuer of all the Equity Support Shares pursuant to this Equity Support Agreement, and the performance of its obligations hereunder and under each Pledge Agreement and Control Subscription Agreement and the compliance by the Issuer with all of the provisions of this Subscription Agreement and the Transaction Agreement and the consummation of the transactions contemplated thereby, herein and therein will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan or credit agreement, guarantee, note, bond, permit, lease, license or other agreement or instrument to which the Issuer or any of its subsidiaries is a party (including without limitation the Transaction Agreement) or by which the Issuer or any of its subsidiaries is bound or to which any of the property or assets of the Issuer is subject that subject, which would reasonably be expected to have a material adverse effect on the business, prospects, properties, management, financial condition condition, stockholders’ equity or results of operations of the Issuer and its subsidiaries, taken as a whole (a “Material Adverse Effect”), or materially affect the validity of the Equity Support Shares or the legal authority or ability of the Issuer to timely comply in all material respects with its obligations under the terms of this Equity Support Subscription Agreement or the Transaction Agreement, including the issuance and sale of the Shares (an “Issuer Material Adverse Effect”); (ii) result in any violation of the provisions of the organizational documents of the Issuer; or (iii) result in any violation of any lawstatute or any judgment, order, rule or regulation of any court or governmental agency, taxing authority or regulatory body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have an Issuer Material Adverse Effect.
f. As of the date hereof, except as set forth above and pursuant to (i) the Other Subscription Agreements or (ii) the Transaction Agreement, there are no outstanding options, warrants or other rights to subscribe for, purchase or acquire from the Issuer any shares of Common Stock, Preferred Stock or other equity interests in the Issuer (collectively, “Issuer Equity Interests”) or securities convertible into or exchangeable or exercisable for Issuer Equity Interests or other outstanding contractual obligations of the Issuer to repurchase, redeem or otherwise acquire any Issuer Equity Interests. There are no securities or instruments issued by or to which the Issuer is a party containing anti-dilution or similar provisions that will be triggered by the issuance of (i) the Shares or (ii) the shares of Common Stock to be issued pursuant to any Other Subscription Agreement, in each case, that have not been or will not be validly waived on or prior to the Subscription Closing. There are no stockholder agreements, voting trusts or other agreements or understandings to which the Issuer is a party or by which it is bound relating to the voting of any Issuer Equity Interests, other than as contemplated by the Transaction Agreement. There are no outstanding contractual obligations of the Issuer to provide funds to, or make any investment (in the form of a loan, capital contribution or otherwise) in, any other person or entity.
g. The Issuer is not in default or violation (and no event has occurred which, with notice or the lapse of time or both, would constitute a default or violation) of any term, condition or provision of (i) the Issuer’s charter documents, (ii) any loan or credit agreement, note, bond, mortgage, indenture, lease or other agreement, permit, franchise or license to which the Issuer is a party or by which the Issuer’s properties or assets are bound or (iii) any statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have a Material Adverse Effect or materially affect properties, except, in the validity case of the Equity Support Shares or the legal authority of the Issuer to comply in all material respects with its obligations under this Equity Support Agreement.
(e) As of their respective filing dates, all reports required to be filed by the Issuer with the U.S. Securities and Exchange Commission (the “SEC”) since January 13, 2021 (the “SEC Reports”) complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder. As of the date hereof, there are no material outstanding or unresolved comments in comment letters received by the Issuer from the staff of the Division of Corporation Finance of the SEC with respect to any of the SEC Reports.
(f) The Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, domestic or foreign, self-regulatory organization or other person in connection with the issuance of the Equity Support Shares pursuant to this Equity Support Agreement, other than (i) filings with the SEC, clauses (ii) filings required by applicable state securities laws, and (iii) the filings required in accordance with Section 16 of this Equity Support Agreement; (iv) those required by The Nasdaq Stock Market LLC), including with respect to obtaining approval of the Issuer’s stockholders, for defaults or violations that have not had and (v) those the failure of which to obtain would not be reasonably be expected likely to have, individually or in the aggregate, a an Issuer Material Adverse Effect.
(g) As of the date hereof, the . The Issuer has not received any written communication from a governmental authority entity that alleges that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation would not reasonably be expected to have, individually or in the aggregate, a an Issuer Material Adverse Effect.
(h) h. Assuming the accuracy of each the representations and warranties of the Subscriber set forth in Section 7 of this Subscription Agreement, the Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority, self-regulatory organization (including the NYSE) or other person in connection with the execution, delivery and performance of this Subscription Agreement or the Transaction Agreement (including, without limitation, the issuance of the Shares pursuant to this Subscription Agreement), other than (i) filings with the Commission, (ii) filings required by applicable state securities laws, (iii) filings required by NYSE, (iv) filings required to consummate the Transaction as provided under the definitive documents relating to the Transaction, (v) the filing of a notification under the Xxxx-Xxxxx-Xxxxxx Antitrust Improvements Act of 1976 (the “HSR Act”), if applicable, and (vi) where the failure of which to obtain would not reasonably be expected to have an Issuer Material Adverse Effect.
i. As of the Transaction Closing, the issued and outstanding shares of Common Stock will be registered pursuant to Section 12(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and will be listed for trading on the NYSE. There is no suit, action, proceeding or investigation pending or, to the knowledge of Issuer, threatened against the Issuer by NYSE or the Commission, respectively, to prohibit or terminate the listing of the shares of Common Stock on NYSE or to deregister the shares of Common Stock under the Exchange Act. The Issuer has taken no action that is designed to terminate the registration of the shares of Common Stock under the Exchange Act.
j. Assuming the accuracy of the Subscriber’s representations and warranties set forth in Section 6 7 of this Equity Support Subscription Agreement, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Equity Support Shares by the Issuer to each Subscribers.
(i) the Subscriber. Neither the Issuer nor any person acting on its behalf has offered engaged or sold the Equity Support Shares by will engage in any form of general solicitation or general advertising (within the meaning of Regulation D of the Securities Act) in connection with any offer or sale of the Shares. The Shares are not being offered in a manner involving a public offering under, or in a distribution in violation of, the Securities Act, or any state securities laws.
k. Neither the Issuer, nor any person acting on its behalf has, directly or indirectly, made any offers or sales of any Issuer security or solicited any offers to buy any Issuer security under circumstances that would adversely affect reliance by the Issuer on Section 4(a)(2) of the Securities Act for the exemption from registration of the offer and sale of the Shares or would require registration of the issuance of the Shares under the Securities Act.
(j) Following the Transaction Closing, the issued and outstanding Shares of the Issuer will be registered pursuant to Section 12(b) of the Exchange Act. Following the Closing, the Equity Support l. The Shares are expected to be registered under the Exchange Act.
(k) The Issuer is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Equity Support Shares.
(l) The Issuer is not, and following the Issuer after Transaction Closing and the consummation Subscription Closing will not be, subject to any Transfer Restriction. The term “Transfer Restriction” means any condition to or restriction on the ability of the transaction contemplated herebySubscriber to pledge, will not be required sell, assign or otherwise transfer the Shares under any organizational document, policy or agreement of, by or with Issuer, but excluding the restrictions on transfer described in Sections 7(d) and 7(x) of this Subscription Agreement with respect to register the status of the Shares as an “investment companyrestricted securities” as such term is defined in pending their registration for resale or transfer under the Investment Company Act of 1940, as amended.
(m) The Issuer isSecurities Act, and the Issuer after the consummation of the transaction contemplated hereby will be, an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(n) Neither the Issuer nor the Issuer after the consummation of the transaction contemplated hereby (as applicable, following the Collateral Account Deposit, the Option Premium Payment and any payment pursuant to Section 13(a) hereof) (i) is, or shall be, “insolvent” (as such term is defined in Section 101(32) of the Bankruptcy Code (Title 11 of the United States Code)) and (ii) for the purposes of Cayman Islands law, is and will be unable to pay its debts.
(o) The Issuer, the SPAC, Cartesian Capital Group, LLC, the indirect controlling person of the Issuer (the “Issuer Shareholder ”) and/or their respective advisors (collectively, the “Project Maple Parties”) have not, directly or indirectly, negotiated or entered into an Excluded Financing accordance with any other parties for the benefit of the Issuer, the SPAC, the shareholders of the Issuer or the shareholders of the SPAC. For the avoidance of doubt, the ATM Agreement is expressly permitted and discussing, negotiating, and closing such a facility shall not be a breach of this Section 5(o)applicable securities laws.
(p) As of the date hereof, each of the Issuer and the Issuer Shareholder are not a party to any agreement with any third parties containing “most favored nation” clauses that (i) could be reasonably expected to be breached by this Equity Support Agreement and/or (ii) could be reasonably expected to create “tag-along” rights in favor of any third parties.
(q) The Issuer (i) is capable of evaluating independently the risks and benefits to it that may arise in respect of the transactions contemplated by this Equity Support Agreement; (ii) has determined based on its own independent review and such professional advice as it deems appropriate that this Equity Support Agreement and the transactions contemplated hereby are (A) are fully consistent with its financial needs, objectives and condition, (B) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to it, and (C) are a fit, proper and suitable for it (including as to any legal, regulatory, tax, accounting or economic consequences arising from such transaction), notwithstanding the substantial risks inherent therein, including in particular but without limitation, the provisions of Sections 7, 13 and 15.
(r) (i) The directors of the Issuer have concluded that (A) the this Equity Support Agreement and the transactions contemplated hereby are suitable for it, for its commercial benefit and in its best interests, in light of its own business objectives, financial condition and expertise and (B) this Equity Support Agreement has been duly approved and authorized by directors of the Issuer after due consideration by them of the foregoing matters and those referred to in Section 5(q) above.
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