THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT ONE MINUTE PAST 11:59 P.M., EASTERN TIME, ON JULY 24, 2025, UNLESS THE OFFER IS EXTENDED OR EARLIER TERMINATED. | ||
THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT ONE MINUTE PAST 11:59 P.M., EASTERN TIME, ON JULY 24, 2025, UNLESS THE OFFER IS EXTENDED OR EARLIER TERMINATED. | ||
• | If you hold your Shares directly as the holder of record, complete and sign the Letter of Transmittal (or, in the case of a book-entry transfer, deliver an Agent’s Message (as defined below) in lieu of the Letter of Transmittal) that accompanies this Offer to Purchase in accordance with the instructions set forth therein and mail or deliver the Letter of Transmittal with any required signature guarantees and all other required documents to the Depositary (as defined below in the “Summary Term Sheet”). These materials must be delivered to the Depositary prior to the Expiration Date (as defined below). |
• | If you hold your Shares through a broker, dealer, commercial bank, trust company or other nominee, request your broker, dealer, commercial bank, trust company or other nominee to tender your Shares through The Depository Trust Company’s (“DTC”) Automated Tender Offer Program (“ATOP”) prior to the Expiration Date. |
Securities Sought | Subject to certain conditions, including the satisfaction of the Minimum Condition (as described in Section 15 — “Conditions of the Offer”), all of the issued and outstanding shares of common stock, par value $0.01 per share, of SigmaTron. | ||
Price Offered Per Share | Upon the terms and subject to the conditions set forth in this Offer to Purchase and in the related Letter of Transmittal: $3.02, net to the stockholder in cash, without interest and less any required tax withholding. | ||
Scheduled Expiration of Offer | One minute past 11:59 p.m., Eastern Time, on July 24, 2025, unless the Offer is otherwise extended or earlier terminated. | ||
Offeror | Transom Axis MergerSub, Inc. (“Merger Sub”), a Delaware corporation and wholly owned subsidiary of Transom Axis AcquireCo, LLC, a Delaware limited liability company (“Parent”). Merger Sub and Parent are affiliates of Transom Capital Group, LLC. | ||
SigmaTron Board Recommendation | The SigmaTron Board unanimously recommended that SigmaTron’s stockholders accept the Offer and tender their Shares pursuant to the Offer. | ||
• | Merger Sub, a wholly owned subsidiary of Parent, which was formed solely for the purpose of facilitating the acquisition of SigmaTron by Parent, is offering to purchase, subject to certain conditions, including the satisfaction of the Minimum Condition, all of the outstanding Shares in exchange for the Offer Price. |
• | Unless the context indicates otherwise, in this Offer to Purchase, we use the terms “us,” “we” and “our” to refer to Merger Sub together with, where appropriate, Parent. We use the term “Merger Sub” to refer to Transom Axis MergerSub, Inc. alone, the term “Parent” to refer to Transom Axis AcquireCo, LLC alone and the term “SigmaTron” to refer to SigmaTron International, Inc. alone. |
• | Merger Sub is offering to purchase all of the issued and outstanding Shares on the terms and subject to the conditions set forth in this Offer to Purchase. In this Offer to Purchase, we use the term “Offer” to refer to this offer to purchase the Shares and the term “Shares” to refer to the issued and outstanding shares of common stock, par value $0.01 per share, of SigmaTron that are the subject of the Offer. |
• | We are making the Offer because we want to acquire control of, and ultimately the entire equity interest in, SigmaTron. Following the consummation of the Offer, we intend to complete the Merger (as |
• | The Offer is open to all holders and beneficial owners of the Shares. |
• | Merger Sub is offering to pay $3.02 per Share, net to the stockholder in cash, without interest and less any required tax withholding. |
• | If you are the holder of record of your Shares and you directly tender your Shares to us in the Offer, you will not need to pay brokerage fees or similar expenses. If you own your Shares through a broker, dealer, commercial bank, trust company or other nominee, and your broker, dealer, commercial bank, trust company or other nominee tenders your Shares on your behalf, your broker, dealer, commercial bank, trust company or other nominee may charge you a fee for doing so. You should consult your broker, dealer, commercial bank, trust company or other nominee to determine whether any charges will apply. |
• | Yes. SigmaTron, Parent and Merger Sub have entered into an Agreement and Plan of Merger, dated May 20, 2025 (as it may be amended from time to time, the “Merger Agreement”). The Merger Agreement contains, among other things, the terms and conditions of the Offer and the Merger. If the Minimum Condition and the other conditions to the Offer are satisfied or waived and we consummate the Offer, we intend to effect the Merger pursuant to Section 251(h) of the DGCL without a vote on the adoption of the Merger Agreement by SigmaTron stockholders. |
• | The exchange of Shares for cash pursuant to the Offer or the Merger will be a taxable transaction for U.S. federal income tax purposes. A U.S. Holder (as defined below) who sells Shares pursuant to the Offer or receives cash in exchange for Shares pursuant to the Merger generally will recognize capital gain or loss for U.S. federal income tax purposes in an amount equal to the difference, if any, between (i) the amount of cash received (determined before the deduction of withholding taxes) and (ii) the U.S. Holder’s adjusted tax basis in the Shares sold pursuant to the Offer or converted pursuant to the Merger. See Section 5 — “Material U.S. Federal Income Tax Consequences” for a more detailed discussion of the tax treatment of the Offer and the Merger. |
• | If you are a Non-U.S. Holder (as defined below), you generally will not be subject to U.S. federal income tax with respect to the sale of Shares pursuant to the Offer or receipt of cash in exchange for Shares pursuant to the Merger unless you have certain connections to the United States. |
• | Yes. We estimate that we will need approximately $95 million in cash to (i) make or cause the making of all payments contemplated by the Merger Agreement required to be made by Parent or Merger Sub at the Closing (including the payment of all amounts payable in connection with or as a result of the Offer and the Merger) and (ii) pay all fees and expenses required to be paid at or prior to the Closing by Parent or Merger Sub. Transom Capital Fund IV, L.P. (the “Equity Investor”) has provided Parent with an Equity Commitment Letter (as defined below), pursuant to which, among other things, the Equity Investor has agreed to contribute to Parent up to an aggregate of approximately $95 million to purchase equity or debt securities of Parent, subject to the satisfaction of certain customary conditions set forth in the Equity Commitment Letter. Parent will contribute or otherwise advance to Merger Sub proceeds from the Equity Investor’s equity or debt investment, which we anticipate will be sufficient to (i) make or cause the making of all payments contemplated by the Merger Agreement required to be made by Parent or Merger Sub at the Closing (including the payment of all amounts payable in connection with or as a result of the Offer and the Merger) and (ii) pay all fees and expenses required to be paid at or prior to the Closing by Parent or Merger Sub. |
• | The Offer is not conditioned upon Parent’s or Merger Sub’s obtaining third-party debt financing. However, SigmaTron has agreed in the Merger Agreement to use its reasonable best efforts to cooperate in taking certain actions to assist Parent and Merger Sub in connection with obtaining third-party debt financing. |
• | We do not think Merger Sub’s financial condition is relevant to your decision to tender Shares in the Offer because: |
• | the Offer is being made for all issued and outstanding Shares solely for cash; |
• | Parent has received an equity commitment in respect of funds, which will be sufficient to purchase all Shares validly tendered (and not properly withdrawn) in the Offer and, if we consummate the Offer and the Merger, all Shares converted into the right to receive an amount in cash equal to the Offer Price in the Merger; |
• | the Equity Investor is a private equity fund engaged in the purchase, sale and ownership of private equity investments and has no business operations other than investing; the Equity Investor’s commitment to fund the equity commitment as described above and in Section 9 — “Source and Amount of Funds” is material to your decision with respect to the Offer; |
• | if Merger Sub consummates the Offer, we will acquire all remaining Shares for the same Offer Price in the Merger; and |
• | the Offer and the Merger are not subject to any financing condition. |
• | Yes. The obligation of Merger Sub to accept for payment and pay for Shares validly tendered (and not properly withdrawn) pursuant to the Offer is subject to various conditions set forth in Section 15 — “Conditions of the Offer,” including the Minimum Condition. The “Minimum Condition” means that there have been validly tendered and not validly withdrawn Shares that, together with all other Shares (if any) beneficially owned by Parent and its affiliates, represent at least one share more than 50% of the shares of common stock outstanding at the Expiration Date. |
• | No. Neither we nor SigmaTron is under any obligation to pursue or consummate the Merger if the Offer is not consummated as set forth in this Offer to Purchase. |
• | You will have until the Expiration Date to tender your Shares in the Offer. The term “Expiration Date” means one minute past 11:59 p.m., Eastern Time, on July 24, 2025, unless the expiration of the Offer is extended to a subsequent date in accordance with the terms of the Merger Agreement, in which case the term “Expiration Date” means such subsequent time on such subsequent date. In addition, if, pursuant to the Merger Agreement, we decide to, or are required to, extend the Offer as described below, you will have an additional period of time to tender your Shares. We are not providing for guaranteed delivery procedures. Therefore, SigmaTron stockholders must allow sufficient time for the necessary tender procedures to be completed during normal business hours of DTC, which end earlier than the Expiration Date. Normal business hours of DTC are between 8:00 a.m. and 5:00 p.m., Eastern Time, Monday through Friday, other than holidays. SigmaTron stockholders must tender their Shares in accordance with the procedures set forth in this Offer to Purchase and the related Letter of Transmittal prior to the Expiration Date. Tenders received by the Depositary after the Expiration Date will be disregarded and of no effect. |
• | Yes. The Merger Agreement contains provisions that govern the circumstances under which Merger Sub is required or permitted to extend the Offer and under which Parent is required to cause Merger Sub to extend the Offer. Specifically, the Merger Agreement provides: |
• | Merger Sub shall extend the Offer for any period required by applicable law, any interpretation or position of the SEC, the staff thereof or Nasdaq applicable to the Offer; |
• | if, as of the then-scheduled Expiration Date, any of the Offer Conditions (other than the Minimum Condition and any such conditions that by their nature are to be satisfied at the Expiration Date (provided, that such other Offer Conditions would be capable of being satisfied or validly waived were the Expiration Date to occur at such time)) is not satisfied (unless such other Offer Condition is waivable by Merger Sub or Parent and has been validly waived), Merger Sub shall extend the Offer and the Expiration Date for additional periods of up to ten (10) Business Days (calculated as set forth in Rule 14d-1(g)(3) under the Exchange Act) per extension; |
• | if, as of the then-scheduled Expiration Date, each of the Offer Conditions (other than the Minimum Condition, and other than any other Offer Conditions that by their nature are to be satisfied at the Expiration Date (provided, that such other Offer Conditions would be capable of being satisfied or validly waived were the Expiration Date to occur at such time)) has been satisfied or waived (to the extent waivable by Merger Sub or Parent and has been validly waived) and the Minimum Condition has not been satisfied, then Merger Sub may, and, at the request in writing of SigmaTron, Merger Sub shall, extend the Offer and the Expiration Date for additional periods of up to ten (10) Business Days (calculated as set forth in Rule 14d-1(g)(3) under the Exchange Act) per extension; provided, however, that in no event shall Merger Sub be required to extend the Offer and the Expiration Date pursuant to this third bullet for more than thirty (30) Business Days in the aggregate; and |
• | if, as of the then-scheduled Expiration Date, the Minimum Condition is satisfied but one or more of the other Offer Conditions (other than any such conditions that by their nature are to be satisfied at the Expiration Date (provided, that such other Offer Conditions would be capable of being satisfied or validly waived were the Expiration Date to occur at such time)) is not satisfied (unless such other Offer Condition is waivable by Merger Sub or Parent and has been validly waived), Merger Sub may, and Parent may cause Merger Sub to, extend the Offer. |
• | No, the Merger Agreement does not provide for a “subsequent offering period” in accordance with Rule 14d-11 under the Exchange Act without the prior written consent of SigmaTron. |
• | If we extend the Offer, we intend to inform Equiniti Trust Company, LLC, the depositary and paying agent for the Offer (the “Depositary”), of any extension, and will issue a press release announcing the extension no later than 9:00 a.m., Eastern Time, on the business day after the previously scheduled Expiration Date. |
• | The obligation of Merger Sub to accept for payment and pay for Shares validly tendered (and not properly withdrawn) pursuant to the Offer is subject to the satisfaction of a number of conditions by the scheduled Expiration Date of the Offer, including, among other conditions: |
• | the Minimum Condition (as defined below in Section 15 — “Conditions of the Offer”); |
• | the Legal Restraint Condition (as defined below in Section 15 — “Conditions of the Offer”); and |
• | the Representations Condition (as defined below in Section 15 — “Conditions of the Offer”). |
• | If you hold your Shares directly as the holder of record, complete and sign the Letter of Transmittal (or, in the case of a book-entry transfer, deliver an Agent’s Message in lieu of the Letter of Transmittal) that accompanies this Offer to Purchase in accordance with the instructions set forth therein and mail or deliver the Letter of Transmittal with any required signature guarantees and all other required documents to the Depositary. These materials must be delivered to the Depositary prior to the Expiration Date. |
• | If you hold your Shares through a broker, dealer, commercial bank, trust company or other nominee, request your broker, dealer, commercial bank, trust company or other nominee to tender your Shares through ATOP prior to the Expiration Date. |
• | We are not providing for guaranteed delivery procedures. Therefore, SigmaTron stockholders must allow sufficient time for the necessary tender procedures to be completed during normal business hours of DTC, which end earlier than the Expiration Date. Normal business hours of DTC are between 8:00 a.m. and 5:00 p.m., Eastern Time, Monday through Friday, other than holidays. SigmaTron stockholders must tender their Shares in accordance with the procedures set forth in this Offer to Purchase and the related Letter of Transmittal prior to the Expiration Date. Tenders received by the Depositary after the Expiration Date will be disregarded and of no effect. |
• | If the Offer Conditions are satisfied and we accept your validly tendered Shares for payment, payment will be made by deposit of the aggregate purchase price for the Shares accepted in the Offer with the |
• | You may withdraw your previously tendered Shares at any time until the Expiration Date. In addition, if we have not accepted your Shares for payment within 60 days of commencement of the Offer, you may withdraw them at any time after August 25, 2025, the 60th day after commencement of the Offer, until we accept your Shares for payment. |
• | To properly withdraw previously tendered Shares, you must deliver a written notice of withdrawal with the required information to the Depositary prior to the Expiration Date. If you tendered Shares by giving instructions to a broker, dealer, commercial bank, trust company or other nominee, you must instruct the broker, dealer, commercial bank, trust company or other nominee to arrange for the withdrawal of your Shares in a timely manner prior to the Expiration Date. |
• | Yes. At a meeting held on May 20, 2025, the SigmaTron Board unanimously (i) determined that it is in the best interests of SigmaTron and its stockholders, and declared it advisable, for SigmaTron to enter into the Merger Agreement, (ii) approved the execution, delivery and performance of the Merger Agreement and the consummation of the transactions contemplated by the Merger Agreement, including the Offer and the Merger, (iii) resolved that the Merger shall be effected under Section 251(h) of the DGCL, and (iv) resolved to recommend that the stockholders of SigmaTron tender their Shares to Merger Sub pursuant to the Offer, all upon the terms and subject to the conditions set forth in the Merger Agreement. |
• | No. We expect to complete the Merger as soon as practicable following the consummation of the Offer. Once the Merger takes place, SigmaTron will become a wholly owned subsidiary of Parent. Following the Merger, we will cause the Shares to be delisted from Nasdaq and deregistered under the Exchange Act. |
• | No. Section 251(h) of the DGCL provides that, unless expressly required by its certificate of incorporation, no vote of stockholders will be necessary to authorize the merger of a constituent corporation which has a class or series of stock listed on a national securities exchange or held of record by more than 2,000 holders immediately prior to the execution of the applicable agreement of merger by such constituent corporation if, subject to certain statutory provisions: |
• | the agreement of merger expressly permits or requires that the merger will be effected by Section 251(h) of the DGCL and provides that such merger be effected as soon as practicable following the consummation of the tender offer; |
• | an acquiring corporation consummates a tender offer for all of the outstanding stock of such constituent corporation on the terms provided in such agreement of merger that, absent the provisions of Section 251(h) of the DGCL, would be entitled to vote on the adoption or rejection of the agreement of merger; provided however, that such tender offer may be conditioned on the tender of a minimum number or percentage of shares of the stock of such constituent corporation, or any class or series thereof, and such offer may exclude any excluded stock (as defined in the DGCL); |
• | immediately following the consummation of the tender offer, the stock that the acquiring corporation irrevocably accepts for purchase, together with the stock otherwise owned by the acquiring corporation or its affiliates, equals at least the percentage of shares of each class of stock of such constituent corporation that would otherwise be required to adopt the agreement of merger for such constituent corporation; |
• | the acquiring corporation merges with or into such constituent corporation pursuant to such agreement of merger; and |
• | each outstanding share (other than shares of excluded stock) of each class or series of stock of the constituent corporation that is the subject of and not irrevocably accepted for purchase in the offer is converted in such merger into, or into the right to receive, the same amount and type of consideration in the merger as was payable in the tender offer. |
• | If the conditions to the Offer and the Merger are satisfied or waived (to the extent waivable), we are required by the Merger Agreement to effect the Merger pursuant to Section 251(h) of the DGCL without a meeting of SigmaTron stockholders and without a vote or any further action by SigmaTron stockholders. |
• | If the Offer is consummated, subject to the satisfaction or waiver of certain conditions set forth in the Merger Agreement (See Section 11 — “The Merger Agreement; Other Agreements — Merger Agreement”), Merger Sub will merge with and into SigmaTron pursuant to Section 251(h) of the DGCL. At the Effective Time, each Share issued and outstanding immediately prior to the Effective Time (other than (i) Shares owned by SigmaTron (as treasury stock or otherwise) immediately prior to the Effective Time, (ii) Shares directly owned by Parent or Merger Sub, and any Share that is owned by any wholly owned subsidiary of Parent (other than Merger Sub), in each case, immediately prior to the Effective Time, or (iii) Dissenting Shares), will be converted into the right to receive the Merger Consideration, less any required tax withholding. |
• | If the Merger is completed, SigmaTron stockholders who do not tender their Shares in the Offer (other than stockholders who properly exercise appraisal rights) will receive the same Offer Price per Share that they would have received had they tendered their Shares in the Offer. Therefore, if the Offer is consummated and the Merger is completed, the only differences to you between tendering your Shares and not tendering your Shares in the Offer are that (i) you may be paid earlier if you tender your Shares in the Offer and (ii) appraisal rights will not be available to you if you tender Shares in the Offer, but will be available to you in the Merger if you do not tender Shares in the Offer and you comply in all respects with Section 262 of the DGCL. |
• | However, in the unlikely event that the Offer is consummated but the Merger is not completed, the number of SigmaTron stockholders and the number of Shares that are still in the hands of the public may be so small that there will no longer be an active public trading market (or, possibly, there may not be any public trading market) for the Shares. Also, in such event, it is possible that the Shares will be delisted from Nasdaq and SigmaTron will no longer be required to make filings with the SEC under the Exchange Act. |
• | At the Effective Time, by virtue of the Merger, (i) each option to purchase shares of common stock (each, a “Company Option”) that is outstanding immediately prior to the Effective Time, whether vested or unvested, and which has an exercise price per share of common stock that is less than the Merger Consideration (each, an “In the Money Option”), will automatically and without any required action on the part of the holder thereof or SigmaTron, be cancelled and converted into the right to receive (without interest) an amount in cash equal to the product of (x) the total number of shares of common stock underlying the Company Option, multiplied by (y) the excess, if any, of the Merger Consideration over the exercise price per share of common stock applicable to such In the Money Option, less applicable tax withholdings. At the Effective Time, each Company Option that is not an In the Money Option which is outstanding immediately prior to the Effective Time, whether vested or unvested, shall, automatically and without any required action on the part of the holder thereof or SigmaTron, be cancelled without any consideration payable therefor. |
• | As of the Effective Time, by virtue of the Merger, the Company Equity Plans will be terminated and no further Shares, Company Options, Company Restricted Stock Awards or other equity or equity-related interests in SigmaTron or other rights with respect to Shares or otherwise shall be granted thereunder. Following the Effective Time, no Company Option, Company Restricted Stock Award, equity or equity-related interest or other right under any Company Equity Plan or otherwise (other than the Company Warrants) that was outstanding immediately prior to the Effective Time shall remain outstanding, and each former holder of any such Company Option, Company Restricted Stock Award, equity or equity-related interest or other right shall cease to have any rights with respect thereto, except the right to receive the consideration set forth above. |
• | On May 20, 2025, the last full day of trading before the public announcement of the execution of the Merger Agreement, the reported closing price of the Shares on Nasdaq was $1.29 per Share. On June 25, 2025, the last full day of trading before commencement of the Offer, the reported closing price of the Shares on Nasdaq was $2.93 per Share. We encourage you to obtain a recent market quotation for the Shares before deciding whether to tender your Shares. |
• | Yes. On May 20, 2025, in connection with the execution and delivery of the Merger Agreement, Gary R. Fairhead, John P. Sheehan, and Frank Cesario (collectively, the “Supporting Stockholders”), solely in their respective capacities as stockholders of SigmaTron, entered into tender and support agreements (collectively, the “Support Agreements”) with Parent and Merger Sub, pursuant to which each Supporting Stockholder agreed, among other things, (i) to tender all of the Shares held by such Supporting Stockholder in the Offer, subject to certain exceptions (including the valid termination of the Merger Agreement), (ii) to vote against other proposals to acquire SigmaTron and (iii) to certain other restrictions on its ability to take actions with respect to SigmaTron and its Shares. |
• | Each Support Agreement terminates automatically upon the earliest of (i) the valid termination of the Merger Agreement in accordance with its terms, (ii) the Effective Time, (iii) termination of such Support Agreement by written notice of termination from Parent to the applicable Supporting Stockholder(s), (iv) the termination or expiration of the Offer, without any shares being accepted for payment thereunder, or (v) the date on which any amendment or change to the Merger Agreement or the Offer is effected without the applicable Supporting Stockholders’ consent that decreases the amount, or changes the form, of consideration in an adverse manner to such Supporting Stockholder individually or the stockholders of SigmaTron, generally, pursuant to the terms of the Merger Agreement. The Supporting Stockholders collectively beneficially owned approximately 2.29% of the outstanding Shares as of May 20, 2025. |
• | If the Offer is successful and the Merger is consummated, SigmaTron stockholders who continuously held Shares from the date of the demand for appraisal through the effective date of the Merger who: (i) did not tender their Shares in the Offer; (ii) otherwise comply with the applicable requirements and procedures of Section 262 of the DGCL, including providing documentary evidence of such stockholder’s beneficial ownership of such Shares; and (iii) do not thereafter withdraw their demand for appraisal of such Shares or otherwise lose their appraisal rights, in each case in accordance with Section 262 of the DGCL, will be entitled to demand appraisal of their Shares and receive, in lieu of the consideration payable in the Merger, a cash payment equal to the “fair value” of such Shares exclusive of any element of value arising from the accomplishment or expectation of the Merger, together with a fair rate of interest, if any, as determined by the Delaware Court of Chancery (the “Delaware Court”), in accordance with Section 262 of the DGCL. Stockholders should be aware that the fair value of their Shares could be more than, the same as, or less than Offer Price or the consideration payable in the Merger (which is equivalent in amount to the Offer Price), and that an investment banking opinion as to the fairness, from a financial point of view, of the consideration payable in a sale transaction, such as the Offer and the Merger, is not an opinion as to, and does not otherwise address, fair value under Section 262 of the DGCL. Any stockholder contemplating the exercise of such appraisal rights should review carefully the provisions of Section 262 of the DGCL, particularly the procedural steps required to properly demand and perfect such rights. |
• | More information regarding Section 262 of the DGCL, including how to access it without subscription or cost, is set forth in SigmaTron’s Solicitation/Recommendation Statement on Schedule 14D-9, which is being mailed to SigmaTron stockholders together with the Offer materials (including this Offer to Purchase and the related Letter of Transmittal). |
• | You may call D.F. King & Co., Inc., the information agent for the Offer (the “Information Agent”), toll free at (877) 732-3613. See the back cover of this Offer to Purchase for additional contact information for the Information Agent. |
Terms of the Offer |
• | Merger Sub shall extend the Offer for any period required by applicable Law, any interpretation or position of the SEC, the staff thereof or Nasdaq applicable to the Offer; |
• | if, as of the then-scheduled Expiration Date, any of the Offer Conditions (other than the Minimum Condition and any such conditions that by their nature are to be satisfied at the Expiration Date (provided, that such other Offer Conditions would be capable of being satisfied or validly waived were the Expiration Date to occur at such time)) is not satisfied (unless such other Offer Condition is waivable by Merger Sub or Parent and has been validly waived), Merger Sub shall extend the Offer and the Expiration Date for additional periods of up to ten (10) Business Days (calculated as set forth in Rule 14d-1(g)(3) under the Exchange Act) per extension; |
• | if, as of the then-scheduled Expiration Date, each of the Offer Conditions (other than the Minimum Condition, and other than any other Offer Conditions that by their nature are to be satisfied at the Expiration Date (provided, that such other Offer Conditions would be capable of being satisfied or validly waived were the Expiration Date to occur at such time)) has been satisfied or waived (to the extent waivable by Merger Sub or Parent and has been validly waived) and the Minimum Condition has not been satisfied, then Merger Sub may, and, at the request in writing of SigmaTron, Merger Sub shall, extend the Offer and the Expiration Date for additional periods of up to ten (10) Business Days (calculated as set forth in Rule 14d-1(g)(3) under the Exchange Act) per extension; provided, however, that in no event shall Merger Sub be required to extend the Offer and the Expiration Date pursuant to this third bullet for more than thirty (30) Business Days in the aggregate; and |
• | if, as of the then-scheduled Expiration Date, the Minimum Condition is satisfied but one or more of the other Offer Conditions (other than any such conditions that by their nature are to be satisfied at the Expiration Date (provided, that such other Offer Conditions would be capable of being satisfied or validly waived were the Expiration Date to occur at such time)) is not satisfied (unless such other Offer Condition is waivable by Merger Sub or Parent and has been validly waived), Merger Sub may, and Parent may cause Merger Sub to, extend the Offer. |
• | decrease the Offer Price (other than an adjustment made pursuant to Section 1.1(g) of the Merger Agreement); |
• | change the form of consideration payable in the Offer (except nothing will limit the ability of Parent and Merger Sub to increase the cash consideration payable in the Offer); |
• | decrease the maximum number of Shares sought to be purchased in the Offer; |
• | impose additional conditions to the Offer other than the Offer Conditions; |
• | amend, modify or waive the Minimum Condition; |
• | amend, modify or supplement any of the Offer Conditions in a manner that adversely affects any holder of Shares in its capacity as such; |
• | withdraw or terminate the Offer or extend or otherwise change the Expiration Date, except as permitted by the Merger Agreement; or |
• | provide any “subsequent offering period” (or any extension thereof) within the meaning of Rule 14d-11 promulgated under the Exchange Act. |
Acceptance for Payment and Payment for Shares |
Procedures for Accepting the Offer and Tendering Shares |
Withdrawal Rights |
Material U.S. Federal Income Tax Consequences |
• | the gain, if any, on the Shares is effectively connected with a U.S. trade or business of the Non-U.S. Holder (and, if an applicable treaty so provides, is also attributable to a permanent establishment maintained by such Non-U.S. Holder in the United States); or |
• | the Non-U.S. Holder is a nonresident alien individual who is present in the United States for 183 days or more in the taxable year of the Effective Time and certain other conditions are met. |
6. |
High | Low | |||||
2025 | ||||||
Second Quarter (through June 25, 2025) | $2.99 | $0.99 | ||||
First Quarter | $2.42 | $2.38 | ||||
2024 | ||||||
Fourth Quarter | $1.81 | $1.70 | ||||
Third Quarter | $2.85 | $2.66 | ||||
Second Quarter | $5.80 | $5.39 | ||||
First Quarter | $3.71 | $3.63 | ||||
2023 | ||||||
Fourth Quarter | $3.21 | $3.01 | ||||
Third Quarter | $3.22 | $3.12 | ||||
Second Quarter | $3.34 | $3.18 | ||||
First Quarter | $2.67 | $2.36 | ||||
Certain Information Concerning SigmaTron |
Certain Information Concerning Parent, Merger Sub and Certain Related Parties |
Source and Amount of Funds |
• | the Effective Time, the consummation of the Offer and the Merger, and the payment in full of the Required Amounts (as defined in the Merger Agreement); |
• | the valid termination of the Merger Agreement in accordance with its terms under circumstances in which Parent would not be obligated to pay any of the Guaranteed Obligations; |
• | the three-month anniversary of any valid termination of the Merger in accordance with its terms under circumstances in which Parent is obligated to pay any of the Guaranteed Obligations, if SigmaTron has not commenced an action against Parent or Merger Sub under, and in accordance with, the Merger Agreement for payment of the Guaranteed Obligations or against the Equity Investor under, and in accordance with, the Guarantee for payment of the Guaranteed Obligations (a “Qualifying Suit”); and |
• | payment of the Guaranteed Obligations by or on behalf of the Equity Investor and/or Parent in cash in an amount up to the Cap (or such lesser amount set forth in any final, non-appealable order or by written agreement of the Equity Investor and SigmaTron). |
Background of the Offer; Past Contacts or Negotiations with SigmaTron |
The Merger Agreement; Other Agreements |
• | decrease the Offer Price (other than an adjustment made pursuant to Section 1.1(g) of the Merger Agreement); |
• | change the form of consideration payable in the Offer (except nothing will limit the ability of Parent and Merger Sub to increase the cash consideration payable in the Offer); |
• | decrease the maximum number of Shares sought to be purchased in the Offer; |
• | impose additional conditions to the Offer other than the Offer Conditions; |
• | amend, modify or waive the Minimum Condition; |
• | amend, modify or supplement any of the Offer Conditions in a manner that adversely affects any holder of Shares in its capacity as such; |
• | withdraw or terminate the Offer or extend or otherwise change the Expiration Date, except as permitted by the Merger Agreement; or |
• | provide any “subsequent offering period” (or any extension thereof) within the meaning of Rule 14d-11 promulgated under the Exchange Act. |
• | Merger Sub shall extend the Offer for any period required by applicable law, any interpretation or position of the SEC, the staff thereof or Nasdaq applicable to the Offer; |
• | if, as of the then-scheduled Expiration Date, any of the Offer Conditions (other than the Minimum Condition and any such conditions that by their nature are to be satisfied at the Expiration Date (provided, that such other Offer Conditions would be capable of being satisfied or validly waived were the Expiration Date to occur at such time)) is not satisfied (unless such other Offer Condition is waivable by Merger Sub or Parent and has been validly waived), Merger Sub shall extend the Offer and the Expiration Date for additional periods of up to ten (10) Business Days (calculated as set forth in Rule 14d-1(g)(3) under the Exchange Act) per extension; |
• | if, as of the then-scheduled Expiration Date, each of the Offer Conditions (other than the Minimum Condition, and other than any other Offer Conditions that by their nature are to be satisfied at the Expiration Date (provided, that such other Offer Conditions would be capable of being satisfied or validly waived were the Expiration Date to occur at such time)) has been satisfied or waived (to the extent waivable by Merger Sub or Parent and has been validly waived) and the Minimum Condition has not been satisfied, then Merger Sub may, and, at the request in writing of SigmaTron, Merger Sub shall, extend the Offer and the Expiration Date for additional periods of up to ten (10) Business Days (calculated as set forth in Rule 14d-1(g)(3) under the Exchange Act) per extension; provided, however, that in no event shall Merger Sub be required to extend the Offer and the Expiration Date pursuant to this third bullet for more than thirty (30) Business Days in the aggregate; and |
• | if, as of the then-scheduled Expiration Date, the Minimum Condition is satisfied but one or more of the other Offer Conditions (other than any such conditions that by their nature are to be satisfied at the Expiration Date (provided, that such other Offer Conditions would be capable of being satisfied or validly waived were the Expiration Date to occur at such time)) is not satisfied (unless such other Offer Condition is waivable by Merger Sub or Parent and has been validly waived), Merger Sub may, and Parent may cause Merger Sub to, extend the Offer. |
• | corporate matters, such as organization, organizational documents, standing, qualification, power and authority; |
• | capital structure; |
• | subsidiaries and equity interests; |
• | authority, execution and enforceability relative to the Merger Agreement; |
• | no conflicts and required consents; |
• | SEC filings and undisclosed liabilities; |
• | disclosure controls and internal controls over financial reporting; |
• | accuracy of information supplied for purposes of the Offer Documents; |
• | the absence of specified changes or events; |
• | taxes; |
• | labor relations; |
• | employees and employee benefit plans; |
• | real property; |
• | contracts; |
• | litigation; |
• | compliance with laws, including anti-corruption and anti-bribery laws; |
• | environmental matters; |
• | permits; |
• | intellectual property; |
• | privacy and data security; |
• | insurance; |
• | brokers and other advisors; |
• | material customers and suppliers; |
• | anti-takeover provisions and statutes; |
• | the opinion of its financial advisor; |
• | no stockholder vote required; and |
• | related party transactions. |
(i) | changes in general domestic, foreign or global economic or political conditions or the securities, equity, credit or financial markets in general, or changes in or affecting domestic or foreign interest or exchange rates; |
(ii) | any decline in the market price or trading volume of the common stock or any change in the credit rating of SigmaTron or any of its securities, in and of itself (provided that the facts and circumstances underlying any such decline or change may be taken into account in determining whether a Company Material Adverse Effect has occurred to the extent not otherwise excluded by the definition thereof); |
(iii) | changes or developments in the industries in which SigmaTron or its subsidiaries operate; |
(iv) | the execution, delivery or performance of the Merger Agreement or the terms of the Merger Agreement or the public announcement or pendency or consummation of the Merger or other transactions contemplated hereby, including the impact thereof on the relationships, contractual or otherwise, of SigmaTron or any of its subsidiaries with employees, partnerships, labor unions, works councils, financing sources, franchisees, partners, customers or suppliers, Governmental Entities or other business relationships; |
(v) | the identity of Parent or any of its affiliates (including Merger Sub) as the acquiror of SigmaTron; |
(vi) | compliance with the express terms of, or the taking or omission of any action required by, the Merger Agreement (including the failure of SigmaTron to take any action that SigmaTron is expressly prohibited by the terms of the Merger Agreement from taking or which SigmaTron did not take on account of withheld consent from Parent); |
(vii) | geopolitical conditions, tariffs or sanctions, any act of civil unrest, civil disobedience, war, sabotage or terrorism, including an outbreak or escalation of hostilities or war, or the declaration by the United States or any other governmental entity of a state of emergency, or any worsening of any of the foregoing conditions threatened or existing on May 20, 2025; |
(viii) | any natural or manmade disasters or weather developments, including earthquakes, hurricanes, tsunamis, typhoons, lightning, hail storms, blizzards, tornadoes, droughts, floods, cyclones, arctic frosts, mudslides and wildfires, acts of God, or any virus, pandemic, epidemic or disease or similar force majeure events, including any worsening of such conditions threatened or existing on May 20, 2025; |
(ix) | changes in generally accepted accounting principles or the interpretation or enforcement thereof or any changes in law (or the interpretation or enforcement thereof), in each case after May 20, 2025; |
(x) | any failure to meet internal or published projections, forecasts, guidance or revenue or earning predictions (provided that the facts and circumstances underlying any such failure may be taken into account in determining whether a Company Material Adverse Effect has occurred); |
• | corporate matters, such as organization, organizational documents, standing, qualification, power and authority; |
• | authority, execution and enforceability relative to the Merger Agreement; |
• | no conflicts and required consents; |
• | the Guarantee; |
• | capitalization of Merger Sub; |
• | accuracy of information supplied for purposes of the Offer Documents and the Schedule 14D-9; |
• | brokers; |
• | litigation; |
• | ownership of securities of SigmaTron; |
• | solvency; |
• | stockholder and management arrangements; |
• | no stockholder vote required; |
• | non-competition; and |
• | availability of funds to consummate the Offer and the Merger. |
(i) | (A) authorize, declare, set aside or pay any dividends on or make any other actual, constructive or deemed distribution with respect to its outstanding shares of capital stock or other equity or voting interest (whether in cash, assets, stock or other securities of SigmaTron or its subsidiaries), except dividends and distributions paid by wholly owned subsidiaries of SigmaTron to SigmaTron or to any of SigmaTron’s other wholly owned subsidiaries, or (B) modify the terms of any shares of its capital stock or other equity or voting interests; |
(ii) | split, combine, adjust, subdivide or reclassify any of its capital stock or other equity voting interest or issue or authorize the issuance of any other securities in respect of, in lieu of or in substitution for shares of its capital stock or other equity voting interest, except (A) as may be permitted by certain provisions of the Merger Agreement or (B) any such transaction by a wholly owned subsidiary of SigmaTron that remains a wholly owned subsidiary after consummation of such transaction; |
(iii) | except for actions expressly required by the terms of a Company Benefit Plan set forth on the Disclosure Schedule as in effect on May 20, 2025: (A) increase compensation or benefits (including, without limitation, the salary, wages, bonus opportunities or commission opportunities) of any current or former director, officer, employee or other service provider of SigmaTron or any of its subsidiaries whose annual base compensation is greater than $175,000; (B) grant any (x) change of control, transaction or retention bonus, (y) severance or termination pay or deferred compensation if such pay or compensation is granted to any current or former director, officer, employee or other service provider of SigmaTron or any of its subsidiaries whose annual base compensation is greater than $175,000 in an amount greater than $500,000 in the aggregate or (z) equity or equity-related award; (C) establish, adopt, materially amend or modify, enter into or terminate a material Company Benefit Plan (or other material benefit or compensation plan, program, policy, agreement or arrangement that would be a material Company Benefit Plan if in effect on the date of the Merger Agreement); (D) take any action to accelerate the time of payment, funding (through a grantor trust or otherwise) or vesting of any material compensation or benefits (including with respect to any equity or equity-related award) due to or held by any current or former employee, director, manager, officer, or service provider of SigmaTron or any of its subsidiaries; or (E) hire, promote, engage (or otherwise enter into any employment or consulting agreement or arrangement with) or terminate (other than for cause), furlough or temporarily layoff any employee, director or other service provider of SigmaTron or any of its subsidiaries whose annual base compensation exceeds or would exceed $175,000; |
(iv) | enter into or make any material loans to any of its current or former directors, employees or other service providers or make any material change in its existing borrowing or lending arrangements for or on behalf of any of such persons, except as expressly required by the terms of any Company Benefit Plan, as in effect on the date of the Merger Agreement; |
(v) | (A) change financial accounting policies or procedures or any of its methods of reporting income, deductions or other material items for financial accounting purposes, except as required by GAAP or SEC rule or policy, or (B) revalue in any material respect any of its properties or assets, including writing-off notes or accounts receivable, other than in the ordinary course of business; |
(vi) | adopt any amendments to the organizational documents of SigmaTron or any of its subsidiaries (other than immaterial amendments to the organizational documents of SigmaTron’s subsidiaries); |
(vii) | issue, sell, pledge, dispose of or encumber, or authorize the issuance, sale, pledge, disposition or encumbrance of, any shares of its capital stock, voting stock, warrants, options or other ownership interests in SigmaTron or any subsidiaries of SigmaTron or any rights to purchase or acquire interests in any issues and outstanding equity, equity-based or phantom interests, securities convertible into, exercisable for, exchangeable for or measured by reference to any such shares or ownership interests or take any action to cause to be vested any otherwise unvested Company Equity Awards (except as otherwise required by the terms of the Merger Agreement or the express terms of |
(viii) | except for transactions solely among SigmaTron and its subsidiaries or solely among SigmaTron’s subsidiaries, repurchase, redeem or otherwise acquire any shares of its capital stock, voting stock or any rights, warrants or options to acquire any such shares, other than the acquisition of Shares from a holder of Company Equity Awards outstanding on May 20, 2025 in satisfaction of withholding obligations or in payment of the exercise price or settlement of the award, in each case, to the extent required by the express terms of the Company Equity Award as in effect on May 20, 2025; |
(ix) | incur, assume, or guarantee, any indebtedness for borrowed money (including any long-term or short-term debt), except for (A) any indebtedness among SigmaTron and its subsidiaries or among the SigmaTron’s Subsidiaries, (B) trade payables, and (C) indebtedness incurred pursuant to any existing credit facility in effect as of May 20, 2025; |
(x) | acquire, sell, lease, license, transfer, abandon, exchange or swap, or subject to any Lien (other than Permitted Liens), or otherwise dispose of, any material portion of its properties or tangible assets, except (A) acquisitions, dispositions and sales of inventory, supplies and materials, in each case, in the ordinary course of business, or (B) pursuant to financing transactions permitted pursuant to clause (ix) above; |
(xi) | (A) amend any material tax return, (B) adopt or change any accounting method used for income tax purposes, (C) change or revoke a material tax election, (D) make a material Tax election (other than any tax election that is recurring in nature and consistent with past practice), (E) adopt any other material change to any tax practice or procedure, (F) surrender any claim for a material refund of taxes, or (G) settle or compromise any material Tax proceeding for an amount in excess of the amount reserved with respect thereto; |
(xii) | acquire or dispose of any real property of SigmaTron or any of its subsidiaries for aggregate consideration in excess of $200,000; |
(xiii) | adopt or enter into a plan of complete or partial liquidation, dissolution, merger, consolidation, restructuring, recapitalization or other reorganization of SigmaTron or any of its subsidiaries; |
(xiv) | make any loans advances or capital contributions to, or investments in, any other person, except for (A) short-term extensions of credit to customers in the ordinary course of business, (B) short-term advances to directors, officers and other employees for travel and other business-related expenses, in each case, in the ordinary course of business and in compliance in all material respects with SigmaTron’s and its subsidiaries’ policies related thereto, and (C) loans, advances or other extensions of credit or capital contributions to, or investments in, SigmaTron or any of its subsidiaries; |
(xv) | settle, release, waive or compromise, or offer or propose to settle, release, waive or compromise, any pending or threatened material Action or other material claim (other than any (x) Disputes or (y) Stockholder Litigation (which is governed by other provisions of the Merger Agreement)), except for the settlement of any action or other claim that is: (A) reflected or reserved against in the Audited Company Balance Sheet; (B) for solely monetary payments of, net of insurance recovery, no more than $200,000 in the aggregate and that (x) does not involve any admission of wrongdoing or (y) does not impose any material restriction on the business or activities of SigmaTron or any current or future subsidiaries of SigmaTron or Parent or its current or future subsidiaries; or (C) settled in compliance with other provisions of the Merger Agreement; |
(xvi) | incur or commit to incur any capital expenditure(s) in the aggregate in excess of the amounts set forth in the Disclosure Schedule; |
(xvii) | enter into, modify, extend, waive, terminate or allow to expire any (A) contracts (other than any Company Material Contract) that if so entered into, modified, amended or terminated would, individually or in the aggregate, have a Company Material Adverse Effect; or (B) Company Material Contract or any contract that would have been a Company Material Contract if such contract was in existence as of May 20, 2025, except for any such actions taken in the ordinary course of business |
(xviii) | engage in any transaction with, or enter into any agreement, arrangement or understanding with, any affiliate of SigmaTron or other person covered by Item 404 of Regulation S-K promulgated by the SEC that would be required to be disclosed pursuant to Item 404, except as permitted by certain provisions of the Merger Agreement; |
(xix) | acquire (by merger, consolidation or acquisition of stock or assets) any other person or any material portion thereof or material equity interest therein or enter into any contract that involves a joint venture entity, limited liability company or legal partnership (excluding commercial arrangements that do not the formation of an entity with any third person) except in respect of any merger, consolidation or business combination among SigmaTron and its subsidiaries or among the SigmaTron Subsidiaries; |
(xx) | maintain insurance at materially less than current levels or otherwise in a manner inconsistent with past practice; |
(xxi) | (i) modify, extend, terminate or enter into any Collective Bargaining Agreement or (ii) recognize or certify any labor union, works council, labor organization or other employee representative as the bargaining representative for any employees of SigmaTron or any of its subsidiaries; |
(xxii) | implement or announce any employee layoffs, furloughs, reductions in force, plant closing, material reductions in compensation or other actions that could trigger notice requirements under the WARN Act; |
(xxiii) | waive or release any noncompetition, nonsolicitation, nondisclosure, noninterference, nondisparagement, or other restrictive covenant obligation of any employee or individual service provider of SigmaTron or any of its subsidiaries; |
(xxiv) | take any action to commence contributions to or withdraw (whether partially or completely) from any Multiemployer Plan; |
(xxv) | sell, assign, transfer, license, subject to any lien (other than permitted liens), allow to lapse or expire, abandon, or otherwise dispose of any material Company Intellectual Property, except for non-exclusive licenses granted in the ordinary course of business; |
(xxvi) | implement, adopt or enter into any rights agreement, “poison pill” anti-takeover plan or other similar agreement; or |
(xxvii) | agree or commit to take any of the foregoing actions. |
(i) | withhold, withdraw or qualify or modify in any manner adverse to Parent, or propose to withhold, withdraw or qualify and/or modify in any manner adverse to Parent, the Recommendation; |
(ii) | authorize, adopt, approve, endorse, recommend or otherwise declare advisable or resolve to authorize, adopt, approve, endorse, recommend or otherwise declare advisable any Alternative Proposal; |
(iii) | with respect to any Alternative Proposal initiated through a tender or exchange offer pursuant to Rule 14d-2 under the Exchange Act, fail to take any formal action or fail to make any recommendation or public statement against acceptance of such offer within five (5) Business Days of commencement of such offer; |
(iv) | fail to include the Recommendation in the Schedule 14D-9; |
(v) | approve, adopt or authorize any acquisition agreement, merger agreement or similar agreement with respect to an Alternative Proposal (other than Acceptable Confidentiality Agreement in accordance with the no-shop provisions of the Merger Agreement); |
(vi) | fail to publicly reaffirm the Recommendation within five (5) Business Days after Parent so requests in writing (it being understood that SigmaTron will have no obligation to make such reaffirmation more than once per proposal, unless such proposal is amended, modified or supplemented); |
(vii) | commit or agree to do any of the foregoing (any such action described in the foregoing clauses (i) through (vi) or, to the extent related to the foregoing clauses (i) through (vi), clause (vii), a “Change of Recommendation”); or |
(viii) | cause or permit SigmaTron to enter into any Alternative Acquisition Agreement. |
• | at any time prior to the Offer Acceptance Time, by the mutual written consent of SigmaTron and Parent; |
• | by either SigmaTron or Parent, if the Offer Acceptance Time shall not have occurred on or before 11:59 p.m., Eastern Time, on September 17, 2025 (the “End Date”); provided, that the right to terminate the Merger Agreement pursuant to this bullet shall not be available to a party that has breached in any material respect its obligations or any provision under the Merger Agreement in any manner that shall have been the primary cause of, or primarily resulted in, the failure of the Offer Acceptance Time to occur on or before the End Date (the “End Date Termination Right”); |
• | by either SigmaTron or Parent, if at any time prior to the Offer Acceptance Time, (i) any governmental entity of competent jurisdiction shall have issued or entered an injunction or similar order permanently enjoining, prohibiting, restricting, or making illegal the acceptance of payment for Shares pursuant to the Offer or the consummation of the Merger or the transactions contemplated by the Merger Agreement, and such injunction or order shall have become final and non appealable, or any action has been taken by any governmental entity of competent jurisdiction, that in each case, enjoins, prohibits, restricts or makes illegal the acceptable of payment for Shares pursuant to the Offer or the consummation of the Merger or the transactions contemplated by the Merger Agreement or (ii) any law or order has been enacted, entered, enforced or deemed applicable to the acceptance of payment for Shares pursuant to the Offer or the consummation of the Merger or the transactions contemplated by the Merger Agreement that enjoins, prohibits, restricts or makes illegal the acceptance of payment for Shares pursuant to the Offer or the consummation of the Merger or the transactions contemplated by the Merger Agreement; provided, that the party seeking to terminate the Merger Agreement pursuant to this bullet shall not have breached in any material respect its obligations or any provision under the Merger Agreement (including, for the avoidance of doubt, the efforts provisions of the Merger Agreement) in any manner that shall have been the primary cause of, or primarily resulted in, the issuance or entry of such injunction or similar order; |
• | by either SigmaTron or Parent, at any time prior to the Offer Acceptance Time, if the Offer shall have expired in accordance with its terms (as extended in accordance with the terms of the Merger Agreement) and the Offer Acceptance Time shall not have occurred solely as a result of the failure to satisfy the Minimum Condition; provided, that the right to terminate the Merger Agreement and abandon the transactions contemplated by the Merger Agreement pursuant to this bullet shall not be available to a party that has breached in any material respect its obligations under the Merger Agreement in any manner that shall have been the primary cause of, or primarily resulted in, the occurrence of the events described in this bullet (the “Offer Expiration Termination Right”); |
• | by SigmaTron, if Parent or Merger Sub shall have breached or failed to perform any of their representations, warranties, covenants or other agreements contained in the Merger Agreement, which breach or failure to perform (i) would reasonably be expected to have a Parent Material Adverse Effect and (ii) cannot be cured by the End Date or, if curable, is not cured within thirty (30) days (or, if earlier, prior to the End Date) following SigmaTron’s delivery of written notice to Parent stating SigmaTron’s intention to terminate the Merger Agreement pursuant to this bullet and the basis for such termination, it being understood that SigmaTron will not be entitled to terminate the Merger Agreement pursuant to this bullet if such breach or failure to perform has been cured prior to such termination, if curable; provided, that SigmaTron shall not have a right to terminate the Merger Agreement pursuant to this bullet if SigmaTron is then in breach of any representation, warranty, agreement or covenant contained in the Merger Agreement that would result in the failure of any of the Offer Conditions to be satisfied (if such Offer Condition were tested as of the date of such breach) (the “Parent Breach Termination Right”); |
• | by Parent, if SigmaTron shall have breached or failed to perform any of its representations, warranties, covenants or other agreements contained in the Merger Agreement, which breach or failure to perform (i) would result in a failure of any of the Offer Conditions to be satisfied and (ii) cannot be cured by the End Date or, if curable, is not cured within thirty (30) days (or, if earlier, prior to the End Date) following Parent's delivery of written notice to SigmaTron stating Parent's intention to terminate the Merger Agreement pursuant to this bullet and the basis for such termination, it being understood that Parent will not be entitled to terminate the Merger Agreement pursuant to this bullet if such breach or failure to perform has been cured prior to such termination, if curable; provided, that Parent shall not have a right to terminate the Merger Agreement pursuant to this bullet if Parent or Merger Sub is then in breach of any representation, warranty, agreement or covenant contained in the Merger Agreement that would result in a Parent Material Adverse Effect (if it were tested as of the date of such breach) (the “Company Breach Termination Right”); |
• | by SigmaTron, at any time prior to the Offer Acceptance Time, in accordance with the “Superior Proposals” provision of the Merger Agreement described above, if (i) SigmaTron has received a Superior Proposal, (ii) SigmaTron Board has authorized SigmaTron to terminate the Merger Agreement and enter into an Alternative Acquisition Agreement to consummate the Alternative Proposal contemplated by the Superior Proposal, (iii) SigmaTron has complied in all respects with its obligations under the no-shop provisions of the Merger Agreement with respect to such Superior Proposal, and (iv) prior to or concurrently with such termination, SigmaTron pays the Termination Fee due to Parent in accordance with the Merger Agreement (the “Superior Proposal Termination Right”); and |
• | by Parent, at any time prior to the Offer Acceptance Time, if (i) the SigmaTron Board shall have effected a Change of Recommendation or (ii) (A) SigmaTron, its subsidiaries or their respective representatives shall have materially breached their obligations under the no-shop provisions of the Merger Agreement and (B) as of such date of termination, the Minimum Condition has not been satisfied (the “Recommendation Change and Non-Solicit Breach Termination Right”). |
• | SigmaTron shall have terminated the Merger Agreement pursuant to the Superior Proposal Termination Right; |
• | Parent shall have terminated the Merger Agreement pursuant to the Recommendation Change and Non-Solicit Breach Termination Right or the Company Breach Termination Right; or |
• | (A) after May 20, 2025 and prior to such termination of the Merger Agreement, an Alternative Proposal (substituting in the definition thereof “fifty percent (50%)” for each of “twenty percent (20%)” and “eighty percent (80%)” in each place each such phrase appears) is made to SigmaTron or the SigmaTron Board or publicly proposed or publicly disclosed and not withdrawn (a “Qualifying Transaction”), (B) the Merger Agreement is thereafter terminated (1) by Parent or SigmaTron pursuant to the Offer Expiration Termination Right or (2) by Parent or SigmaTron pursuant to the End Date Termination Right and at the time of any such termination, Parent could have terminated the Merger Agreement pursuant to the Company Breach Termination Right or the Offer Expiration Termination Right, and (C) concurrently with or within twelve (12) months after such termination, SigmaTron shall have (I) entered into a definitive agreement providing for a Qualifying Transaction or (II) consummated a Qualifying Transaction (in each case, whether or not the specified Qualifying Transaction referenced in clause (A)). |
• | participating in, and instructing the senior officers of SigmaTron and/or its subsidiaries with appropriate expertise, at reasonable times and upon reasonable notice, to virtually or telephonically participate in customary bank meetings and presentations, customary and reasonable due diligence sessions and similar presentations to and with prospective lenders and investors; |
• | assisting with the preparation of customary materials for bank information memoranda, ratings agency materials, lender presentations and other customary marketing materials required in connection with the third-party debt financing; |
• | executing and delivering customary certificates (including, without limitation, a solvency certificate and borrowing base certificate of the chief financial officer as of the Closing Date) or other documents and instruments relating to the third-party debt financing (including agreements pledging, granting a |
• | delivering to Parent and its designee reasonable and customary financial and operating information with respect to SigmaTron and/or its subsidiaries customarily provided in connection with transactions of this type, to the extent requested by Parent or such designee, including, without limitation, such financial and operating information as reasonably necessary to satisfy the conditions required by paragraphs 1, 3, 5, 6 and 9 of Exhibit C to the debt commitment letter contemplated as part of the third-party debt financing (or the analogous provision in any amendment, modification, supplement, restatement or replacement thereof permitted or required hereunder); |
• | cooperating in the commercially reasonable due diligence and marketing efforts for the third-party debt financing; |
• | providing to Parent and the debt financing parties, at least ten (10) Business Days prior to the Closing Date, all documentation and other information required in connection with the third-party debt financing by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including the USA PATRIOT Act, Title III of Pub. L. 107-56 (signed into law October 26, 2001), as amended and the requirements of 31 C.F.R. § 1010.230 to the extent requested at least seven Business Days prior to the Closing Date; |
• | taking all corporate, limited liability company or similar administrative or organizational actions reasonably necessary to permit the consummation of the third-party debt financing, such as by having the board of directors, managers, members, or other equivalent governing bodies of SigmaTron and/or any of its subsidiaries or any of their direct parents provide, and causing their respective representatives to provide, any resolutions, consents or approvals on behalf of such person as may be reasonably required by the debt financing parties at or as of the Closing; |
• | providing and causing senior management of SigmaTron and/or its subsidiaries and their representatives to provide reasonable assistance with the preparation of and providing information for disclosure schedules required for the definitive documentation in respect of the third-party debt financing (including schedules to the credit agreement(s), any pledge and security documents, perfection certificates and customary closing certificates) and, subject to any and all customary qualifications, pro forma financial statements; |
• | providing customary payoff letters and lien releases for the indebtedness repaid pursuant thereto (and cooperating with Parent and/or its designee in the negotiation and delivery thereof), which shall be in form and substance reasonably acceptable to Parent; and |
• | assisting with the provision of deposit account control agreements, landlord lien waivers and bailee waivers (or similar agreements), insurance certificates and the pledge of stock certificates and facilitate the pledge of any other collateral, in each case, as reasonably requested by Parent or its affiliates and effective at or as of the Closing. |
Purpose of the Offer; Plans for SigmaTron |
Certain Effects of the Offer |
Dividends and Distributions |
Conditions of the Offer |
Certain Legal Matters; Regulatory Approvals |
Appraisal Rights |
• | prior to the later of the consummation of the Offer (which will occur at the date and time of the acceptance for payment of Shares pursuant to and subject to the conditions of the Offer) and twenty (20) days after the mailing of the Schedule 14D-9, deliver to SigmaTron a written demand for appraisal of Shares held, which demand must reasonably inform SigmaTron of the identity of the stockholder and that the stockholder is demanding appraisal; |
• | not tender his, her or its Shares in the Offer; |
• | continuously hold the Shares from the date on which the written demand for appraisal is made through the Effective Time; and |
• | comply with the procedures of Section 262 of the DGCL for perfecting appraisal rights thereafter. |
Fees and Expenses |
Miscellaneous |
Entity | State of Formation | Controlled By | Management | ||||||
Transom Axis MergerSub, Inc. | DE | Transom Axis AcquireCo, LLC | Board of Directors | ||||||
Transom Axis AcquireCo, LLC | DE | Transom Axis TopCo, LLC | Management by the Managing Member | ||||||
Transom Axis HoldCo, Inc. | DE | Transom Axis TopCo, LLC | Board of Directors | ||||||
Transom Axis TopCo, LLC | DE | Transom Capital Fund IV, L.P. | Board of Managers | ||||||
• | Russell Roenick - President |
• | Rob Randolph - Secretary |
• | Nathan Dastic - Treasurer |
Name | Citizenship | Principal Occupation or Employment and Five Year Employment History | ||||
Russell Roenick | United States of America | Mr. Roenick serves as Managing Partner of Transom Capital. Mr. Roenick is a co-founder of Transom Capital and has worked at Transom Capital since 2008. | ||||
Rob Randolph | United States of America | Mr. Randolph serves as Executive Vice President of Finance and Operations at Transom Capital. Mr. Randolph has worked at Transom Capital since 2024 and from 2019 to 2021, and previously served as Partner, Operations and Finance at Auto Tire & Parts Inc. (Napa) from 2021 to 2024. | ||||
Nathan Dastic | United States of America | Mr. Dastic serves as Chief Financial Officer & Chief Compliance Officer of Transom Capital. Mr. Dastic has worked at Transom Capital since 2016. | ||||
Name | Citizenship | Principal Occupation or Employment and Five Year Employment History | ||||
Russell Roenick | United States of America | Mr. Roenick serves as Managing Partner of Transom Capital. Mr. Roenick is a co-founder of Transom Capital and has worked at Transom Capital since 2008. | ||||
If delivering by mail: Equiniti Trust Company, LLC Operations Center Attn: Reorganization Department P.O. Box 525 Ridgefield Park, New Jersey 07660 | If delivering by hand, express mail, courier or any other expedited service: Equiniti Trust Company, LLC 55 Challenger Road Suite # 200 Ridgefield Park, New Jersey 07660 Attn: Reorganization Department | ||