Draper Oakwood Technology Acquisition, Inc. Announces Execution of Backstop Agreements
14 12월 2018 - 11:10PM
Business Wire
Draper Oakwood Technology Acquisition, Inc. (the “Company”)
(NASDAQ: “DOTA,” “DOTAU,” “DOTAR” and “DOTAW”) announced today that
it has entered into two backstop arrangements in connection with
its proposed business combination with Reebonz Limited (the
“Business Combination”). The Business Combination, if approved by
the stockholders of the Company at a special meeting of
stockholders to be held on December 19, 2018 (the “Special
Meeting”), will be effected pursuant to a Business Combination
Agreement among the Company, Reebonz Limited, DOTA Holdings Limited
(a Cayman Islands exempted company that will be the continuing
public entity following the Business Combination and be renamed
“Reebonz Holding Limited”; referred to herein as “Reebonz Holding”)
and certain other parties (the “Business Combination
Agreement”).
On December 13, 2018 and December 14, 2018, the Company and DOTA
Holdings Limited entered into backstop agreements (the “Backstop
Agreements”) with two different accredited investors (the “Backstop
Investors”). Pursuant to the Backstop Agreements, one investor has
agreed to acquire 1,000,000 shares of Class A common stock of the
Company (”Common Stock”; such shares the “Backstop Shares”) and the
other investor has agreed to acquire $5 million of shares of Common
Stock in open market or in privately negotiated transactions prior
to the 5:00 pm ET on December 14, 2018. The Backstop Investors have
agreed that until the earlier of the closing of the Business
Combination (“the Closing”) or the date on which the Business
Combination Agreement is terminated, the Backstop Investors will
not transfer any Common Stock, including any Backstop Shares that
they acquire. In addition, each Backstop Investor has agreed (i) to
vote all of its Common Stock, including any Backstop Shares, that
it owns as of the record date for the Special Meeting, in favor of
the Business Combination and each of the other proposals of the
Company to be voted on at the Special Meeting that are required for
the Closing, and (ii) to refrain from exercising any rights that
such investor may have to redeem or convert any Common Stock that
it owns, including any Backstop Shares.
In consideration for the agreement of the Backstop Investors,
the Company has agreed (i) to issue to the Backstop Investors
restricted Common Stock (the “Additional Shares”) at the rate of
0.25 share for each Backstop Share purchased and not redeemed, (ii)
and to register the resale of such shares pursuant to the
Securities Act of 1933, as amended (the “Securities Act”), as
promptly as practicable after the Closing. In addition, it is
contemplated that the Backstop Shares (which, upon the Closing,
will become ordinary shares of Reebonz Holding) and, when
registered, the Additional Shares (which, upon the Closing, will
become ordinary shares of Reebonz Holding), will be sold in market
transactions during the 90-day period following the Closing (which
90 day period may be shortened to up to 60 days by Reebonz
Holding), subject to certain volume and sale limitations. Any
shares not sold in the open market during the period will be
purchased by Reebonz Holding at the end of the period. Under
certain circumstances, Reebonz Holding may be required during such
90-day period to purchase certain of the securities held by the
Backstop Investors. In the event that the aggregate proceeds from
such sales are less than 110% of the aggregate amount paid by the
applicable Backstop Investor for the Backstop Shares, Reebonz
Holding has agreed to pay to such Backstop Investor the difference
in cash (the “Guaranty Obligation”). In addition, Reebonz Holding
has agreed to deposit the portion of the funds currently held in a
trust account for the benefit of Company public stockholders which
is attributable to such Backstop Shares (based on the price per
share to be paid to the Company’s public stockholders who have
properly elected to redeem their public shares in connection with
the Closing) into a segregated escrow account, as security for the
payment of the Guaranty Obligation. The Company agreed with one
Backstop Investor that if the Business Combination Agreement is
terminated, the Company will liquidate promptly thereafter.
About Draper Oakwood
Draper Oakwood is a special purpose acquisition company formed
for the purpose of effecting a merger, capital stock exchange,
asset acquisition, stock purchase, reorganization, or similar
business combination. On September 4, 2018, Draper Oakwood
announced it had entered into a definitive agreement to combine
with Reebonz Limited, an online marketplace and platform for buying
and selling new and preowned luxury products in the Asia Pacific
region.
Additional Information about the Transaction and Where to
Find It
In connection with the proposed Business Combination, the
Company has filed a proxy statement with the SEC on December 6,
2018 and commenced mailing the definitive proxy statement on
December 7, 2018 and other relevant documents to its stockholders
as of the December 5, 2018 record date for the special meeting.
Investors and security holders of the Company are advised to read
the definitive proxy statement and other relevant documents,
including the proxy statement revision filed with the SEC on
December 11, 2018, that have been or will be filed with the SEC in
connection with the Company’s solicitation of proxies for its
stockholders’ meeting to be held to approve the proposed Business
Combination, among other matters, because the definitive proxy
statement and such other documents contain important information
about the proposed Business Combination and the parties to thereto.
Stockholders may also obtain a copy of the definitive proxy
statement, as well as other relevant documents that have been or
will be filed with the SEC, without charge, at the SEC’s website at
www.sec.gov or by directing a request to: Mr. Aamer Sarfraz, Draper
Oakwood Technology Acquisition, Inc., c/o Draper Oakwood
Investments, LLC, 55 East 3rd Ave., San Mateo, CA 94401, Tel. (713)
213-7061
If you have any questions or need assistance voting your shares,
please call our proxy solicitor, Advantage Proxy at 1-877-870-8565
or 1-206-870-8565 or send an email to ksmith@advantageproxy.com
Participants in the Solicitation
The Company, Reebonz Limited, DOTA Holdings Limited and their
respective directors, executive officers and other members of their
management and employees, under SEC rules, may be deemed to be
participants in the solicitation of proxies of the Company’s
stockholders in connection with the Business Combination and
related transactions. Information regarding the persons who may,
under SEC rules, be deemed participants in the solicitation of
proxies to the Company’s stockholders in connection with the
proposed Business Combination, and a description of their direct
and indirect interests, by security holdings or otherwise, is set
forth in the definitive proxy statement for the proposed Business
Combination and the related transactions, which has been filed with
the SEC. Information concerning the interests of the Company’s,
Reebonz Limited’s and DOTA Holdings Limited’s participants in the
solicitation, which may, in some cases, be different than those of
the Company’s, Reebonz Limited’s and DOTA Holdings Limited’s
stockholders generally, is also set forth in the definitive proxy
statement/prospectus relating to the proposed Business Combination
and related transactions.
No Offer or Solicitation
This communication shall not constitute an offer to sell or the
solicitation of an offer to buy any securities, nor shall there be
any sale of securities in any jurisdiction in which the offer,
solicitation or sale would be unlawful prior to the registration or
qualification under the securities laws of any such jurisdiction.
No offering of securities shall be made except by means of a
prospectus meeting the requirements of Section 10 of the Securities
Act.
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version on businesswire.com: https://www.businesswire.com/news/home/20181214005255/en/
Draper Oakwood Technology Acquisition, Inc.Aamer A. Sarfraz,
713-213-7061aamer@draperoakwood.com
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