Item 1.01. Entry into a Material Definitive Agreement
The Business Combination Agreement
On
The Business Combination
The Business Combination Agreement provides that, among other things and upon the terms and subject to the conditions thereof, the following transactions will occur in order to effect the Business Combination:
(i) (a) immediately prior to the Effective Time, the outstanding preferred
shares of Cellebrite will be converted into ordinary shares of Cellebrite
("Cellebrite Ordinary Shares" and each, a "Cellebrite Ordinary Share"), (b)
immediately following such conversion, Cellebrite will effect a stock split (the
"Stock Split") pursuant to which each Cellebrite Ordinary Share will be
converted into a number of Cellebrite Ordinary Shares equal to (A)(x) the equity
value of Cellebrite (which will be based on an enterprise valuation of
Cellebrite of
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(ii) at the closing of the transactions contemplated by the Business Combination Agreement (the "Closing"), upon the terms and subject to the conditions thereof, and in accordance with the Delaware General Corporation Law, as amended or restated, Merger Sub will merge with and into TWC at the Effective Time (the "Merger"), the separate corporate existence of Merger Sub will cease and TWC will continue as the surviving corporation in the Merger and as a wholly owned subsidiary of Cellebrite;
(iii) at the Effective Time, as a result of the Merger, (a) each TWC Share will
be converted into the right to receive: (x) an amount of cash equal to the
greater of
(iv) following the Business Combination, holders of Cellebrite Ordinary Shares and vested restricted share units, in each case as of immediately prior to the Effective Time, will be eligible to receive additional Cellebrite Ordinary Shares post-Closing upon the achievement of certain trading price targets, or upon a Change of Control (as defined in the Business Combination Agreement) of Cellebrite, before the five (5) year anniversary of the Closing Date.
On the date of Closing and prior to the conversion of preferred shares of
Cellebrite described above, an initial dividend of
The board of directors of TWC (the "TWC Board") has unanimously (i) approved and declared advisable the Business Combination Agreement, the Business Combination and the other transactions contemplated thereby and (ii) resolved to recommend approval of the Business Combination Agreement and related matters by the TWC Stockholders.
Conditions to the Closing
The Business Combination Agreement is subject to the satisfaction or waiver of
certain customary closing conditions, including, among others, (i) obtaining
required approvals of the Business Combination and related matters by the
respective stockholders of TWC and Cellebrite, (ii) the effectiveness of the
registration statement on Form F-4 filed by Cellebrite in connection with the
Business Combination, (iii) receipt of approval for the listing on Nasdaq of
Cellebrite Ordinary Shares and Cellebrite Warrants to be issued in connection
with the Business Combination, (iv) that Cellebrite has at least
Covenants
The Business Combination Agreement contains customary covenants by TWC, Merger Sub and Cellebrite, including, among others, providing for (i) the parties to conduct, as applicable, their respective businesses in the ordinary course and consistent with past practice through the Closing, (ii) the parties to not initiate any negotiations or enter into any agreements for certain alternative transactions, (iii) Cellebrite to prepare and deliver to TWC certain audited consolidated financial statements of Cellebrite, (iv) Cellebrite to prepare and file a registration statement on Form F-4 and take certain other actions for TWC to obtain the requisite approval of TWC stockholders of certain proposals . . .
Item 7.01. Regulation FD Disclosure.
On
Included as Exhibit 99.2 to this Current Report on Form 8-K and incorporated herein by reference is the form of Investor Presentation to be used by TWC in presentations for stockholders of TWC and shareholders of Cellebrite and other persons. Such exhibit and the information set forth therein shall 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 shall it be deemed to be incorporated by reference in any filing under the Securities Act or the Exchange Act.
Additional Information
In connection with the proposed Business Combination between Cellebrite and TWC,
Cellebrite intends to file a registration statement on Form F-4 that will
include a preliminary proxy statement/prospectus to be distributed to
stockholders of TWC in connection with TWC's solicitation of proxies for the
vote by its stockholders with respect to the proposed Business Combination.
After the registration statement has been filed and declared effective by the
Participants in the Solicitation
Cellebrite and TWC and their respective directors and officers may be deemed
participants in the solicitation of proxies of TWC Stockholders in connection
with the proposed Business Combination. TWC Stockholders, Cellebrite's
shareholders and other interested persons may obtain, without charge, more
detailed information regarding the directors and officers of Cellebrite and TWC
at Cellebrite's website at www.cellebrite.com, or in TWC's Annual Report on Form
10-K for the fiscal year ended
Information regarding the persons who may, under
5 Non-Solicitation
This Current Report on Form 8-K is not a proxy statement/prospectus or solicitation or 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 exchange, or a solicitation of an offer to buy or exchange, the securities of Cellebrite, TWC or the combined company, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation, sale or exchange would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
Forward-Looking Statements
This Current Report on Form 8-K contains "forward-looking statements" within the
meaning of the "safe harbor" provisions of the United States Private Securities
Litigation Reform Act of 1995. Forward-looking statements may be identified by
the use of words such as "forecast," "intend," "seek," "target," "anticipate,"
"believe," "could," "continue," "expect," "estimate," "may," "plan," "outlook,"
"future" and "project" and other similar expressions that predict or indicate
future events or trends or that are not statements of historical matters. Such
forward-looking statements may include estimated financial information. Any such
forward-looking statements with respect to revenues, earnings, performance,
strategies, prospects and other aspects of the businesses of TWC, Cellebrite or
the combined company after completion of the proposed Business Combination are
based on current expectations that are subject to risks and uncertainties. A
number of factors could cause actual results or outcomes to differ materially
from those indicated by such forward-looking statements. These factors include,
but are not limited to: (1) the occurrence of any event, change or other
circumstances that could give rise to the termination of the Business
Combination Agreement and the proposed Business Combination contemplated
thereby; (2) the inability to complete the transactions contemplated by the
Business Combination Agreement due to the failure to obtain approval of the
stockholders of TWC or other conditions to closing in the Business Combination
Agreement; (3) the ability to meet Nasdaq's listing standards following the
consummation of the transactions contemplated by the Business Combination
Agreement; (4) the risk that the proposed transaction disrupts current plans and
operations of Cellebrite as a result of the announcement and consummation of the
transactions described herein; (5) the ability to recognize the anticipated
benefits of the proposed Business Combination, which may be affected by, among
other things, competition, the ability of the combined company to grow and
manage growth profitably, maintain relationships with customers and suppliers
and retain its management and key employees; (6) costs related to the proposed
Business Combination; (7) changes in applicable laws or regulations; (8) the
possibility that Cellebrite may be adversely affected by other economic,
business, and/or competitive factors; and (9) other risks and uncertainties
indicated from time to time in other documents filed or to be filed with the
Non-GAAP Financial Measure and Related Information
Certain of the exhibits to this Current Report on Form 8-K may reference EBITDA
and EBITDA margin, which are financial measures that are not prepared in
accordance with
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Item 9.01. Financial Statements and Exhibits.
(d) Exhibits. Exhibit No. Exhibit 2.1 Business Combination Agreement, dated as ofApril 8, 2021 . 10.1 Sponsor Support Agreement, dated as ofApril 8, 2021 . 10.2 Form of Cellebrite Shareholders Support Agreement. 10.3 Form of Share Purchase Agreement. 10.4 Form of Redemption and Voting Agreement. 10.5 Form of Investor Rights Agreement. 10.6 Form of Amended Articles. 99.1 Press Release, dated as ofApril 8, 2021 . 99.2 Investor Presentation. 7
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