Item 1.01. Entry into a Material Definitive Agreement
Agreement and Plan of Merger
On
The Merger Agreement and the transactions contemplated thereby were approved by the board of directors of FoxWayne, Merger Sub and Clover. The transactions set forth in the Merger Agreement, including the Merger, will constitute a "Business Combination." Unless expressly stated otherwise herein, capitalized terms used but not defined herein have the meanings ascribed to them in the Merger Agreement.
Treatment of
At the Effective Time, by virtue of the Merger and without any action on the
part of FoxWayne, Merger Sub, the
(i) each share of Class A Common Stock of theContinued Company , no par value per share (the "Continued Company Class A Common Stock"), each share of Class B Common Stock ofContinued Company , no par value per share (the "Continued Company Class B Common Stock"), each share of Class AAA Preferred Stock ofContinued Company , no par value per share (the "Continued Company Class AAA Preferred Stock") and each share of theContinued Company's convertible non-voting preferred stock, no par value per share (the "Continued Company Convertible Preferred Stock" and together with the Continued Company Class A Common Stock, Continued Company ClassB Common Stock and Continued Company Class AAA Preferred Stock, the "Continued Company Capital Stock") issued and outstanding immediately prior to the Effective Time will be canceled and converted into the right to receive the number of shares of FoxWayne's common stock, par value$0.0001 per share (the "FoxWayne Common Stock") allocable from the Aggregate Consideration as set forth in the Consideration Schedule of the Merger Agreement (collectively, the "Per Share Consideration"). "Aggregate Consideration" means 15,747,500 shares of FoxWayne Common Stock; (ii) all shares of Continued Company Capital Stock held in treasury by FoxWayne, theContinued Company or any wholly owned subsidiary of FoxWayne or theContinued Company will be canceled without any conversion thereof and no payment or distribution will be made with respect thereto; (iii) each share of Merger Sub issued and outstanding immediately prior to the Effective Time will be converted into one share of theSurviving Corporation ; (iv) certain warrants to acquire Continued Company Capital Stock (each, a "Continued Company Warrant") that are identified in the Merger Agreement, will be assumed by FoxWayne (each, an "Assumed Warrant"). All other warrants of theContinued Company shall be cancelled or terminated prior to the Effective Time. Each Assumed Warrant will be exercisable for such number of whole shares of FoxWayne Common Stock (rounded up to the nearest whole share) at the per share exercise price (rounded up to the nearest whole cent) as set forth in the Consideration Schedule. The number of shares of FoxWayne Common Stock into which an Assumed Warrant is exercisable shall be based on the Per Share Consideration for the relevant Continued Company Capital Stock into which such Assumed Warrant is exercisable, and the per share exercise price shall be ratably adjusted; -2- (v) no fractional shares of FoxWayne Common Stock will be issued by virtue of the Merger and any fractional shares otherwise issuable to a holder of theContinued Company's securities (after aggregating all fractional shares of FoxWayne Common Stock that otherwise would be received by such holder) will be rounded down to the nearest whole share of FoxWayne Common Stock.
Representations and Warranties
The parties to the Merger Agreement have agreed to customary representations and
warranties for transactions of this type. The representations and warranties of
Clover, or the
Covenants
The Merger Agreement includes covenants of FoxWayne relating to, among other
things, (i) operating its business in the ordinary course, (ii) disbursement of
Trust Account funds, (iii) providing access and information to Clover or the
The Merger Agreement includes covenants of Clover and the
The Merger Agreement also contains additional, customary joint covenants of the parties to, among other things, prepare a Registration Statement on Form S-4 with respect to the FoxWayne Common Stock issuable under the Merger Agreement, which Form S-4 will contain a proxy statement of FoxWayne (the "Registration Statement / Proxy Statement") that includes provisions for approval and/or adoption of (i) the Business Combination, including the Merger and Merger Agreement, (ii) amendments and restatements of FoxWayne's charter and bylaws, (iii) issuance of the Aggregate Consideration pursuant to the Merger Agreement, (iv) FoxWayne's equity incentive plan, and (v) certain other proposals at a special meeting of the holders of FoxWayne Common Stock (collectively, the "Proposals").
Conditions to Closing Mutual
The respective obligations of each of Clover, the
(i) approval by FoxWayne stockholders of the Proposals set forth in the Registration Statement / Proxy Statement; and receipt of the requisite written consent of theContinued Company's stockholders adopting the Merger Agreement and approving the Merger and other transactions contemplated by the Merger Agreement; (iii) no Governmental Authority of competent jurisdiction having enacted, issued, promulgated, enforced or entered any Law or Order that is in effect and restrains, enjoins, makes illegal or otherwise prohibits the consummation of the Merger Agreement and other transactions contemplated thereby; -3- (iv) specified consents, registrations, approvals, clearances, Permits and authorizations from Governmental Entities shall have been obtained; and (v) the Registration Statement / Proxy Statement having been declared effective by theSecurities and Exchange Commission ("SEC") and no stop order suspending the effectiveness of the Registration Statement / Proxy Statement being in effect, and no Proceedings for purposes of suspending the effectiveness of the Registration Statement / Proxy Statement having been initiated or threatened by theSEC . FoxWayne and Merger Sub
The obligations of FoxWayne and Merger Sub to consummate the Merger are subject to the satisfaction or waiver, at or prior to the Closing of additional conditions, including, but not limited to, the following:
(i) Clover's or theContinued Company's , as applicable representations and warranties being true and correct to the extent set forth in the Merger Agreement; (ii) Clover or theContinued Company , as applicable, having complied with or performed in all material respects with all covenants and obligations required by the Merger Agreement to be complied with or performed by it on . . .
Item 7.01. Regulation FD Disclosure.
On
The information in this Item 7.01 and Exhibit 99.1 will not be deemed to be filed for purposes of Section 18 of the Exchange Act or otherwise be subject to the liabilities of that section, nor will it be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act, except as expressly set forth by specific reference in such filing. The submission of the information set forth in this Item 7.01 shall not be deemed an admission as to the materiality of any information in this Item 7.01, including the information presented in Exhibit 99.1, that is provided solely in connection with Regulation FD.
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Important Information for Stockholders
This Current Report on Form 8-K and the exhibits hereto is not a proxy statement or solicitation of a proxy, consent or authorization with respect to any securities or in respect of the Proposed Transactions and shall not constitute an offer to sell or a solicitation of any vote or approval, or of an offer to buy the securities of FoxWayne or Clover, nor shall there be any sale of any such securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of the Securities Act.
In connection with the Proposed Transactions, FoxWayne intends to file the
Registration Statement / Proxy Statement with the
Participants in the Solicitation
FoxWayne and its directors and executive officers may be deemed to be
participants in the solicitation of proxies from the stockholders of FoxWayne in
connection with the Proposed Transactions. Clover and its officers and directors
may also be deemed participants in such solicitation. Information about the
directors and executive officers of FoxWayne is set forth in FoxWayne's
Definitive Proxy Statement on Schedule 14A for its 2022 Annual Meeting of
Stockholders, which was filed with the
Cautionary Note on Forward-Looking Statements
This Current Report on Form 8-K contains certain forward-looking statements
within the meaning of the "safe harbor "provisions under the United States
Private Securities Litigation Reform Act of 1995. All statements other than
statements of historical facts contained in this Current Report on Form 8-K,
including statements regarding FoxWayne's or Clover's or the
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These forward-looking statements are subject to a number of risks including, but
not limited to, the following risks relating to the proposed transaction: (1)
the risk that the proposed transaction may not be completed in a timely manner
or at all, which may adversely affect the price of FoxWayne's securities; (2)
the failure to satisfy the conditions to closing the proposed transaction,
including the approval by the stockholders of FoxWayne and the
No Offer or Solicitation
This Current Report on Form 8-K is not a proxy statement or solicitation of a proxy, consent or authorization with respect to any securities or in respect of the proposed Business Combination and shall not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of the Securities Act.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits. Exhibit No. Exhibit
2.1 † Agreement and Plan of Merger, dated as ofSeptember 16, 2022 , by and among FoxWayne, Merger Sub, Clover and the Stockholders' Representative 10.1 Form of Stockholder Support Agreement 10.2 Form of Sponsor Support Agreement 10.3 Form of Parent Support Agreement 10.4 Form of Registration Rights Agreement 99.1 Press Release, datedSeptember 20, 2022 104 Cover Page Interactive Data File (embedded within the XBRL document)
† Certain of the schedules (and/or exhibits) have been omitted pursuant to Item
601(b)(2) of Regulation S-K. A copy of any omitted schedule (and/or exhibit)
will be furnished to the
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