All conditions to the Offer having been satisfied, on May 23, 2019, Merger Sub accepted for payment
(such time of acceptance for payment, the Acceptance Time) all such Shares validly tendered and not properly withdrawn pursuant to the Offer on or prior to the Expiration Time, and payment for such Shares will be made by the Depositary
and Paying Agent in accordance with the terms of the Offer.
On May 23, 2019, pursuant to the terms of the Merger Agreement and in accordance with
Section 251(h) of the General Corporation Law of the State of Delaware (the DGCL), Merger Sub merged with and into the Company, with the Company surviving as a wholly-owned subsidiary of Parent. At the effective time of the Merger
(the Effective Time), each outstanding Share (other than shares held in the treasury of the Company and any shares owned by Merger Sub or irrevocably accepted for purchase by Merger Sub in the Offer and shares held by any Papa
Murphys stockholder who has validly exercised its appraisal rights under the DGCL) was canceled and converted automatically into the right to receive an amount in cash equal to the Merger Consideration.
In addition, at the Effective Time, (1) each outstanding Company stock option, whether or not then exercisable or vested, was canceled and converted into
the right to receive an amount in cash, without interest and subject to any required withholding taxes, equal to the excess, if any, of the Merger Consideration over the per share exercise price applicable to such Company stock option, multiplied by
the total number of shares subject to such Company stock option, (2) each outstanding award of time-based restricted stock units and each earned award of performance-based restricted stock units vested as of immediately before the Effective
Time and was canceled and converted into the right to receive an amount in cash, without interest and subject to any required withholding taxes, equal to the Merger Consideration, multiplied by the number of shares of Common Stock subject to such
award, and (3) each outstanding unearned award of performance-based restricted stock units vested at the target level for such award as of immediately before the Effective Time and was canceled and converted into the right to receive an amount
in cash, without interest and subject to any required withholding taxes, equal to the Merger Consideration, multiplied by the number of shares of Common Stock subject to such award.
The aggregate consideration paid in the Offer and the Merger was approximately $190 million, excluding related transaction fees and expenses. The
aggregate consideration, repayments of the Credit Facility and related fees and expenses were funded with cash on hand and available borrowings under Parents credit facility (as more fully described in the Offer to Purchase).
The foregoing summary description of the Merger Agreement and related transactions does not purport to be complete and is qualified in its entirety by
reference to the terms of the Merger Agreement, which was filed as Exhibit 2.1 to the Current Report on Form
8-K
filed by the Company with the SEC on April 11, 2019 and is incorporated by reference into
this Item 2.01.
Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing
In connection with the consummation of the Merger, on May 23, 2019, the Company notified the Nasdaq Global Select Market (Nasdaq) of the
consummation of the Merger and requested that Nasdaq file with the SEC a notification on Form 25 to delist and deregister the Shares under Section 12(b) of the Securities Exchange Act of 1934, as amended (the
Exchange Act). Trading of the Shares on Nasdaq was halted prior to the opening of trading on May 23, 2019 and suspended following the closing of trading on May 23, 2019. Nasdaq filed the Form 25 with the SEC on May 23,
2019. The Company intends to file with the SEC a Form 15 under the Exchange Act requesting the deregistration of the Shares and the suspension of the Companys reporting obligations under Section 13 and 15(d) of the Exchange Act.