Amended Tender Offer Statement by Issuer (sc To-i/a)
November 27 2020 - 6:05AM
Edgar (US Regulatory)
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
SCHEDULE
TO
(Rule
14d-100)
Tender
Offer Statement under Section 14(d)(1) or 13(e)(1)
of
the Securities Exchange Act of 1934
(Amendment
No. 3)
SHIFT
TECHNOLOGIES, INC.
(Name
of Subject Company (Issuer) and Name of Filing Person (Issuer))
Warrants
to Purchase Class A Common Stock
(Title
of Class of Securities)
82452T
115
(CUSIP
Number of Warrants)
Amanda
Bradley
Head
of Legal
Shift
Technologies, Inc.
2525
16th Street, Suite 316
San
Francisco, CA 94103-4234
(855)
575-6739
(Name,
Address and Telephone Number of Person Authorized to Receive Notices and Communications on Behalf of Filing Persons)
with
copies to:
Martin
C. Glass
Jeffrey
R. Shuman
Jenner&
Block LLP
919
Third Avenue
New
York, NY 10022-3908
Tel:
(212) 891-1672
CALCULATION
OF FILING FEE
Transaction
valuation(1)
|
|
Amount
of filing fee(2)
|
$16,044,213
|
|
$1,751
|
1
|
Estimated
for purposes of calculating the amount of the filing fee only, in accordance with Rule 0-11(b) under the Securities Exchange
Act of 1934, as amended (the “Exchange Act”). Shift Technologies, Inc. (the “Company”) is offering
holders of all 7,532,494 of the Company’s public warrants outstanding as of November 4, 2020 (the “Public Warrants”)
the opportunity to exchange such Public Warrants for a combination of 0.25 shares of the Company’s Class A common stock,
par value $0.0001 per share (“Class A common stock”), and $1.00 in cash, without interest, for each warrant tendered.
The transaction value was determined by using the average of the high and low prices of the Warrants as reported on The Nasdaq
Capital Market on October 29, 2020, which was $2.13.
|
2
|
The
amount of the filing fee assumes that all outstanding Warrants will be exchanged and is calculated pursuant to Rule 0-11(b)
of the Exchange Act, which equals $109.10 for each $1,000,000 of the transaction value.
|
☒
|
Check
the box if any part of the fee is offset as provided by Rule 0-11(a)(2) and identify the filing with which the offsetting
fee was previously paid. Identify the previous filing by registration statement number, or the Form or Schedule and the date
of its filing.
|
Amount
Previously Paid: $1,751
|
|
Filing
Party: Shift Technologies, Inc.
|
Form
or Registration No.: Schedule TO
|
|
Date
Filed: November 5, 2020
|
☐
|
Check
the box if the filing relates solely to preliminary communications made before the commencement of a tender offer.
|
Check
the appropriate boxes below to designate any transactions to which the statement relates:
|
☐
|
third-party
tender offer subject to Rule 14d-1.
|
|
☒
|
issuer
tender offer subject to Rule 13e-4.
|
|
☐
|
going-private
transaction subject to Rule 13e-3.
|
|
☐
|
amendment
to Schedule 13D under Rule 13d-2.
|
Check
the following box if the filing is a final amendment reporting the results of the tender offer: ☐
EXPLANATORY
NOTE
This
Amendment No. 3 (“Amendment No. 3”) amends the Offer to Exchange Letter (the “Offer Letter”), a copy of
which was filed as Exhibit (a)(1)(A) to the Tender Offer Statement on Schedule TO originally filed by Shift Technologies, Inc.
(the “Company,” “us” or “we”), a Delaware corporation, on November 5, 2020 (the “Schedule
TO”). The Offer Letter and the related Letter of Transmittal and Consent, a copy of which will be filed with a subsequent
amendment to the Schedule TO, together with any amendments or supplements thereto, collectively constitute the “Offer”.
Concurrently
with the Offer, we will also solicit consents from holders of the Public Warrants to amend (the “Warrant Amendment”)
the Warrant Agreement, dated as of March 19, 2019, by and between the Company and Continental Stock Transfer & Trust Company
(the “Warrant Agreement”), which governs all of the Public Warrants. If the Warrant Amendment is approved, we will
not enter into the Warrant Amendment until at least 20 business days after the definitive proxy statement is sent to holders of
Warrants.
This
Amendment No. 3 is being filed to amend and restate certain provisions of the Schedule TO as set forth herein. Except as amended
hereby to the extent specifically provided herein, all terms of the Offer and all other disclosures set forth in the Schedule
TO and the exhibits thereto remain unchanged and are hereby expressly incorporated into this Amendment No. 3 by reference.
Item
7. Source and Amount of Funds or Other Consideration.
Item
7(a) of the Schedule TO is hereby amended and restated in its entirety as follows:
“(a)
Sources of Funds. Assuming 100% participation in the Offer, we will need approximately $7.5 million to pay the cash
portion of the Exchange Consideration for all of our outstanding Public Warrants. We estimate that the total amount of cash required
to complete the transactions contemplated by the Offer and Consent Solicitation, including the payment of any fees, expenses and
other related amounts incurred in connection with the transactions and the payment of cash in lieu of fractional shares will be
approximately $7.9 million. We anticipate that we will obtain all of the funds necessary to exchange Public Warrants tendered
in the Offer to pay related fees and expenses through our existing cash reserves. Consummation of the Offer is not contingent
on us securing any financing. As of November 24, 2020, the company has sufficient cash reserves for funding the Offer.”
Item
10. Financial Statements.
Item
10(a) of the Schedule TO is hereby amended and restated in its entirety as follows:
“(a) Financial
Information. Incorporated herein by reference are (i) the Company’s financial statements that were included
as Part II. Item 8 in its Annual Report on Form 10-K for the fiscal year ended December 31, 2019, filed with the Securities and
Exchange Commission (the “SEC”) on March 25, 2020 (the “Form 10-K”) and (ii) the Company’s financial
results for the quarter ended September 30, 2020, that were included in the Company’s Quarterly Report on Form 10-Q
filed with the SEC on November 16, 2020 (the “Form 10-Q”). The Form 10-K and the Form 10-Q are available for review
on the SEC’s website at www.sec.gov. In addition, the information set forth in the Offer Letter under “The Offer,
Section 10. Financial Information Regarding the Company” is incorporated herein by reference.”
Item
12. Exhibits.
Item
12 of the Schedule TO is hereby amended and restated in its entirety as follows:
Exhibit
Number
|
|
Description
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(a)(1)(A)
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|
Offer to Exchange Letter.
|
|
|
|
(a)(1)(B)
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|
Letter of Transmittal and Consent (including Guidelines of the Internal Revenue Service for Certification of Taxpayer Identification Number on Form W-9)
|
|
|
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(a)(1)(C)
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|
Notice of Guaranteed Delivery.
|
|
|
|
(a)(1)(D)
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|
Letter to Brokers, Dealers, Commercial Banks, Trust Companies and Other Nominees.
|
|
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(a)(1)(E)
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Letter to be used by Brokers, Dealers, Commercial Banks, Trust Companies and Other Nominees for their Clients.
|
|
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(a)(1)(F)
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|
Press Release issued on November 25, 2020 regarding the commencement of the Offer.
|
|
|
|
(d)(1)
|
|
Agreement
and Plan of Merger, dated June 29, 2020, by and among Insurance Acquisition Corp., IAC Merger Sub, Inc., and Shift Technologies,
Inc. (incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K filed on June 29, 2020, File
No. 001-38839).
|
|
|
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(d)(2)
|
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First
Amendment to Agreement and Plan of Merger, dated August 19, 2020, by and among Insurance Acquisition Corp., IAC Merger Sub,
Inc., and Shift Technologies, Inc. (incorporated by reference to Exhibit 2.2 to the Amendment No. 5 to Form S-4 filed on September
23, 2020, File No. 333-239896, which is included as Annex A).
|
|
|
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(d)(3)
|
|
Second
Amended and Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.1 to the Current Report on Form
8-K filed on October 14, 2020).
|
|
|
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(d)(4)
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|
Second
Amended and Restated Bylaws (incorporated by reference to Exhibit 3.2 to the Current Report on Form 8-K filed on October 14,
2020).
|
|
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(d)(5)
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|
Specimen
Warrant Certificate (included in Exhibit (d)(6)).
|
|
|
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(d)(6)
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Warrant
Agreement, dated March 19, 2019, between Continental Stock Transfer & Trust Company and the IAC (incorporated by reference
to Exhibit 4.1 to the Current Report on Form 8-K filed on March 25, 2019).
|
|
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(d)(7)
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Stockholders
Letter Agreement, dated October 13, 2020, by and among the Company and certain former stockholders of Shift identified on
the signature pages thereto (incorporated by reference to Exhibit 4.3 to the Current Report on Form 8-K filed on October 14,
2020).
|
|
|
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(d)(8)
|
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Sponsor
Letter Agreement, dated October 13, 2020, by and among the Company, Insurance Acquisition Sponsor, LLC and Dioptra Advisors,
LLC (incorporated by reference to Exhibit 4.4 to the Current Report on Form 8-K filed on October 14, 2020).
|
|
|
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(d)(9)
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|
Form
of PIPE Subscription Agreement (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K
filed on June 29, 2020).
|
|
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(d)(10)
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Amended
and Restated Registration Rights Agreement, dated October 13, 2020, by and among Insurance Acquisition Sponsor, LLC, Dioptra
Advisors, LLC, Cantor Fitzgerald & Co. and certain initial stockholders of IAC identified on the signature pages thereto
(incorporated by reference to Exhibit 10.33 to the Current Report on Form 8-K filed on October 14, 2020).
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SIGNATURE
After
due inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete
and correct.
Dated:
November 25, 2020
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SHIFT
TECHNOLOGIES, INC.
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|
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By:
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/s/
George Arison
|
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Name:
|
George
Arison
|
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Title:
|
Co-Chief
Executive Officer and Chairman
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4
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