Item 1.01 Entry Into A Material Definitive Agreement.
Transaction Agreement
On
The Transaction Agreement and the transactions contemplated thereby were approved by the boards of directors of each of Horizon and VS PubCo.
The Business Combination
Upon the terms and subject to the conditions of the Transaction Agreement, and
in accordance with the Delaware General Corporation Law and the Cayman Islands
Companies Act, Horizon will merge with and into VS PubCo (the "Merger"), the
separate corporate existence of Horizon will cease and VS PubCo will be the
surviving corporation of the Merger (hereinafter referred to for the periods at
and after the effective time of the Merger (the "Effective Time") (as defined
below) as the "Surviving Corporation"). At the Effective Time, by virtue of the
Merger, each Class A ordinary share of Horizon, par value
Prior to the Merger, and pursuant to the Transaction Agreement, the VS Entities
will complete the Pre-Closing Restructuring (as defined in the Transaction
Agreement), which will include, among other things, a merger of a newly formed
subsidiary of Topco with and into Intermediate, pursuant to which Intermediate
will recapitalize its existing common units and preferred units, the issuance of
common units of Intermediate to certain existing unitholders of Intermediate,
and the issuance to Topco of (i) 3,000,000 warrants to purchase additional
common units of Intermediate at a price of
At least one day prior to the Merger, Sponsor will exchange its existing shares of Horizon Class B Common Stock in exchange for shares of Horizon Class A Common Stock and warrants to purchase Horizon Class A Common Stock in accordance with the Exchange Agreement described below.
At the Closing, and immediately following the Effective Time, VS PubCo will
consummate the transactions contemplated by the PIPE Financing (as defined
below) and the
Also at the Closing, VS PubCo will issue to Topco a number of shares of Class B
Common Stock of VS PubCo, par value
Following the foregoing transactions, Topco is expected to own approximately 61% of the outstanding Intermediate Common Units and an equivalent percentage of the outstanding voting shares of VS PubCo, and VS PubCo will own the remainder of the outstanding Intermediate Common Units. The Business Combination is expected to close in the second half of 2021, following the receipt of the required approvals by Horizon's shareholders and the fulfillment of other customary closing conditions.
Transaction Consideration
Horizon currently has approximately
Representations and Warranties; Covenants
The Transaction Agreement contains representations, warranties and covenants of each of the parties thereto that are customary for transactions of this type, including with respect to corporate organization and authorization, third party consents, capitalization, financial statements, material contracts, tax matters, compliance with laws, employee and benefits matters and intellectual property, among others. Effective immediately following the Closing, VS PubCo's board of directors shall be comprised of nine (9) directors, who shall initially be (i) the chief executive officer of VS PubCo, (ii) five (5) directors designated by the Topco Equityholders (as defined in the Stockholders' Agreement (as defined below)), of which at least one (1) shall qualify as an "independent director" under stock exchange regulations applicable to VS PubCo and (iii) three (3) directors designated by the Horizon Equityholders (as defined in the Stockholders' Agreement (as defined below)), of which at least two (2) directors shall qualify as "independent directors" under stock exchange regulations applicable to VS PubCo.
Conditions toEach Party's Obligations . . .
Item 3.02 Unregistered Sales of
The disclosure set forth above in Item 1.01 of this Current Report on Form 8-K is incorporated by reference herein. The shares of VS PubCo Class A Common Stock to be offered and sold in connection with the Business Combination and the PIPE Financing, as well as the warrants and shares of Horizon Class A Common Stock issued in the Exchange, have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), in reliance upon the exemption provided in Section 4(a)(2) thereof.
Item 7.01 Regulation FD Disclosure.
On
Furnished as Exhibit 99.2 hereto and incorporated into this Item 7.01 by reference is the investor presentation that Horizon and VS PubCo have prepared for use in connection with the PIPE Financing and the announcement of the Business Combination.
The foregoing (including Exhibits 99.1 and 99.2) is being furnished pursuant to Item 7.01 and will not be deemed to be filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended (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 or the Exchange Act regardless of any general incorporation language in such filings. This Current Report will note be deemed an admission of materiality of any of the information in this Item 7.01, including Exhibits 99.1 and 99.2.
Additional Information
In connection with the Business Combination, VS PubCo intends to file with the
Participants in the Solicitation
Horizon and its directors, executive officers, other members of management, and
employees, under
VS
Forward-Looking Statements
Certain statements made in this communication are "forward looking statements"
within the meaning of the "safe harbor" provisions of the United States Private
Securities Litigation Reform Act of 1995. When used in this press release, the
words "estimates," "projected," "expects," "anticipates," "forecasts," "plans,"
"intends," "believes," "seeks," "may," "will," "should," "future," "propose" and
variations of these words or similar expressions (or the negative versions of
such words or expressions) are intended to identify forward-looking statements.
These forward-looking statements are not guarantees of future performance,
conditions or results, and involve a number of known and unknown risks,
uncertainties, assumptions and other important factors, many of which are
outside Vivid Seats' or Horizon's control, that could cause actual results or
outcomes to differ materially from those discussed in the forward-looking
statements. Important factors, among others, that may affect actual results or
outcomes include the inability to complete the Business Combination (including
due to the failure to receive required shareholder approvals, failure to receive
approvals or other determinations from certain gaming regulatory authorities, or
the failure of other closing conditions); the inability to recognize the
anticipated benefits of the proposed Business Combination; the inability to
obtain or maintain the listing of Horizon's shares on the NYSE following the
Business Combination; costs related to the Business Combination; the risk that
the Business Combination disrupts current plans and operations as a result of
the announcement and consummation of the Business Combination; Horizon and Vivid
Seats' ability to manage growth; Horizon and Vivid Seats' ability to execute its
business plan and meet its projections; potential litigation involving Vivid
Seats or
No Offer or Solicitation
This communication is for informational purposes only and is neither an offer to purchase, nor a solicitation of an offer to sell, subscribe for or buy any securities or the solicitation of any vote in any jurisdiction pursuant to the Business Combination or otherwise, nor shall there be any sale, issuance or transfer or securities in any jurisdiction in contravention of applicable law. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act and otherwise in accordance with applicable law.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits Exhibit Number Description 99.1 Press Release, datedApril 22, 2021 . 99.2 Investor Presentation.
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