Item 2.01. Completion of Acquisition or Disposition of Assets.
The
disclosure set forth in the “Introductory Note” above is incorporated into this Item 2.01 by reference.
On
September 19, 2022, the Company’s Class A Common Stock and warrants to purchase Class A Common Stock of the Company began
trading on the Nasdaq Global Market (“Nasdaq”) under the symbols “RUM” and “RUMBW”, respectively.
FORM 10 INFORMATION
Item 2.01(f) of Form 8-K
states that if the predecessor registrant was a shell company, as CF VI was immediately before the Business Combination, then the
registrant must disclose the information that would be required if the registrant were filing a general form for registration of securities
on Form 10. Accordingly, the Company, as the successor issuer to CF VI, is providing the information below that would be included in
a Form 10 if the Company were to file a Form 10. Please note that the information provided below relates to the Company as the combined
company after the consummation of the Business Combination, unless otherwise specifically indicated or the context otherwise requires.
Forward-Looking Statements
This Current Report on Form
8-K contains forward-looking statements regarding, among other things, the plans, strategies and prospects, both business and financial
of the Company. These statements are based on the beliefs and assumptions of the management of the Company. Although the Company believes
that its plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, the Company
cannot provide assurance that it will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently
subject to risks, uncertainties and assumptions. Generally, statements that are not historical facts, including statements concerning
possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. The words “anticipates,”
“believe,” “continue,” “could,” “estimate,” “expect,” “intends,”
“may,” “might,” “plan,” “possible,” “potential,” “predicts,”
“project,” “should,” “would” and similar expressions may identify forward-looking statements, but
the absence of these words does not mean that a statement is not forward-looking. Investors should read statements that contain these
words carefully because they:
| ● | discuss future
expectations; |
| ● | contain projects
of future results of operations or financial condition; or |
| ● | state other “forward-looking”
information. |
The Company believes it is
important to communicate its expectations to its securityholders. However, there may be events in the future that the Company’s
management is not able to predict accurately or over which the Company has no control. The risk factors and cautionary language contained
in this Current Report on Form 8-K, and incorporated herein by reference, provide examples of risks, uncertainties and events that may
cause actual results to differ materially from the expectations described in such forward-looking statements, including among other things:
| ● | the Company’s
ability to recognize the anticipated benefits of the Business Combination, which may be affected
by, among other things, the ability of the Company to grow and manage growth profitably,
maintain relationships with customers, compete within its industry and retain its key employees; |
| ● | the possibility
that the Company may be adversely impacted by economic, business, and/or competitive factors; |
| ● | the Company’s
limited operating history makes it difficult to evaluate its business and prospects; |
| ● | the Company’s
recent and rapid growth may not be indicative of future performance; |
| ● | the Company may
not continue to grow or maintain its active user base, and may not be able to achieve or
maintain profitability; |
| ● | the Company collects,
stores, and processes large amounts of user video content and personal information of its
users and subscribers. If the Company’s security measures are breached, its sites and
applications may be perceived as not being secure, traffic and advertisers may curtail or
stop viewing its content or using its services, its business and operating results could
be harmed, and it could face legal claims from users and subscribers; |
| ● | the Company may
fail to comply with applicable privacy laws; |
| ● | the Company is
subject to cybersecurity risks and interruptions or failures in the Company’s information
technology systems and as it grows and gains recognition, it will likely need to expend additional
resources to enhance the Company’s protection from such risks. Notwithstanding the
Company’s efforts, a cyber incident could occur and result in information theft, data
corruption, operational disruption and/or financial loss; |
| ● | the Company may
be found to have infringed on the intellectual property of others, which could expose the
Company to substantial losses or restrict its operations; |
| ● | the Company may
face liability for hosting a variety of tortious or unlawful materials uploaded by third
parties, notwithstanding the liability protections of section 230 of the Communications Decency
Act; |
| ● | the Company may
face negative publicity for removing, or declining to remove, certain content, regardless
of whether such content violated any law; |
| ● | the Company’s
traffic growth, engagement, and monetization depend upon effective operation within and compatibility
with operating systems, networks, devices, web browsers and standards, including mobile operating
systems, networks, and standards that it does not control; |
| ● | the Company’s
business depends on continued and unimpeded access to its content and services on the Internet.
If the Company or those who engage with its content experience disruptions in Internet service,
or if Internet service providers are able to block, degrade or charge for access to the Company’s
content and services, the Company could incur additional expenses and the loss of traffic
and advertisers; |
| ● | the Company faces
significant market competition, and if the Company is unable to compete effectively with
its competitors for traffic and advertising spend, its business and operating results could
be harmed; |
| ● | changes to the
Company’s existing content and services could fail to attract traffic and advertisers
or fail to generate revenue; |
| ● | the Company depends
on third-party vendors, including Internet service providers, advertising networks, and data
centers, to provide core services; |
| ● | hosting and delivery
costs may increase unexpectedly; |
| ● | changes in tax
rates, changes in tax treatment of companies engaged in e-commerce, the adoption of new U.S. or
international tax legislation, or exposure to additional tax liabilities may adversely impact
the Company’s financial results; |
| ● | compliance obligations
imposed by new privacy laws, laws regulating social media platforms and online speech in
the U.S. and Canada, or industry practices may adversely affect the Company’s
business; |
| ● | the novel coronavirus
that causes the disease known as COVID-19 has caused a global health crisis that has caused
significant economic and social disruption, and its impact on Rumble’s business is
uncertain; and |
| ● | other risks and
uncertainties indicated in this Current Report on Form 8-K, including those under “Risk
Factors” herein, and other filings that have been made or will be made with the
SEC by the Company. |
Business
The business of the Company
is described in the Proxy Statement/Prospectus in the section titled “Information About Rumble” and that information
is incorporated herein by reference.
Risk Factors
The risks associated with
the Company are described in the Proxy Statement/Prospectus in the section titled “Risk Factors,” which is incorporated
herein by reference.
Financial Information
The selected
statement of operations data and cash flows data for the three months ended March 31, 2022 and March 31, 2021, and fiscal years ended
December 31, 2021 and December 31, 2020, and the selected balance sheets data as of March 31, 2022, December 31, 2021 and December 31,
2020 are described in the Proxy Statement/Prospectus in the section titled “Selected Historical Financial Information of Rumble”
and that information is incorporated herein by reference. In addition, the statement of operations data and statement of cash flows for
Rumble’s interim period ended June 30, 2022 and June 30, 2021 and balance sheet as of June 30, 2022 is filed as Exhibit 99.2 to
this Current Report on Form 8-K and incorporated herein by reference.
Information
responsive to Item 2 of Form 10 is set forth in the Proxy Statement/Prospectus in the section titled “Management’s
Discussion and Analysis of Financial Condition and Results of Operations of Rumble” and that information is incorporated herein
by reference. Also included as Exhibit 99.4 and incorporated herein by reference is Management’s Discussion and Analysis of Financial
Condition and Results of Operations of Rumble for the six months ended June, 30, 2022 and June 30, 2021.
Security Ownership of Certain Beneficial Owners and Management
The following table sets forth information regarding
the beneficial ownership of shares of our different classes of voting securities (i.e., Class A Common Stock, Class C Common Stock
and Class D Common Stock), as of September 16, 2022, following the consummation of the Business Combination, by:
| ● | each person known
by the Company to be the beneficial owner of more than 5% of a class of voting securities
on September 16, 2022; |
| ● | each of the Company’s
officers and directors; and |
| ● | all executive officers
and directors of the Company as a group. |
Beneficial
ownership is determined according to the rules of the SEC, which generally provide that a person has beneficial ownership of a security
if he, she or it possesses sole or shared voting or investment power over that security, including options and warrants that are currently
exercisable or exercisable within 60 days. For example, in the event a holder of Exchanged Company Options has
the right to exercise such options within 60 days, such underlying shares (including any Tandem Option Earnout Shares) are reflected
in such holder’s beneficial ownership in both the numerator and the denominator, but not in the denominator for other unaffiliated
holders, in accordance with the rules of the SEC. In addition, such securities held by all of the Company’s directors and executive
officers are included in both the numerator and denominator for purposes of determining the percentage share ownership held by the directors
and executive officers, calculated as a group. Notwithstanding the foregoing, however, (i) all shares of Class A Common Stock issuable
upon exchange of the ExchangeCo Exchangeable Shares and (ii) all Forfeiture Escrow Shares and the Sponsor’s shares subject to forfeiture
and cancellation under the Sponsor Support Agreement (for which the conditions to the achievement of the stock price-based release conditions
can be achieved within 60 days) are deemed issued and outstanding and included in the denominator for all holders in order to
avoid a distorted and potentially misleading presentation of percentage share ownership by holder.
The below presentation assumes
as of September 16, 2022, (i) the Forfeiture Escrow Shares are deemed issued and outstanding for purposes of the denominator for all
holders and have not been forfeited, (ii) the Tandem Option Earnout Shares are available for issuance to the relevant holder thereof
upon the exercise of any Exchanged Company Options (and are included only within the denominator for that holder and for the directors
and executive officers calculated as a group) and have not been forfeited, and (iii) the shares of Class A Common Stock issuable
upon exchange of the ExchangeCo Shares are deemed issued and outstanding for purposes of the denominator for all holders, i.e., each
holder has converted any ExchangeCo Shares held by such holder into shares of Class A Common Stock.
The below presentation is
based on 280,229,977 shares of Class A Common Stock issued and outstanding (including all shares of Class A Common Stock issuable
upon exchange of the ExchangeCo Shares) as of September 16, 2022.
| |
Class A Common Stock | | |
| |
Name and Address of Beneficial Owner | |
Number of Shares Beneficially Owned(6) | | |
% of Class | | |
Voting Percentage | |
Directors and Executive Officers(1) | |
| | |
| | |
| |
Christopher Pavlovski | |
| 140,182,173 | (2) | |
| 44.6 | % | |
| 85.0 | % |
Wojciech Hlibowicki | |
| 15,356,476 | | |
| 5.3 | % | |
| 1.0 | % |
Brandon Alexandroff | |
| 18,896,820 | | |
| 6.4 | % | |
| 1.2 | % |
Tyler Hughes | |
| 466,854 | | |
| * | | |
| * | |
Michael Ellis | |
| — | | |
| * | | |
| * | |
Claudio Ramolo | |
| 13,574,287 | | |
| 4.7 | % | |
| * | |
Ryan Milnes.(3) | |
| 50,254,401 | | |
| 17.9 | % | |
| 3.2 | % |
Paul Cappuccio | |
| 93,617 | | |
| * | | |
| * | |
Robert Arsov(4) | |
| 27,392,307 | | |
| 9.4 | % | |
| 1.7 | % |
Nancy Armstrong | |
| — | | |
| * | | |
| * | |
Ethan Fallang | |
| — | | |
| * | | |
| * | |
All executive officers and directors as a group (11 individuals) | |
| 266,415,569 | | |
| 72.9 | % | |
| 93.1 | % |
| |
| | | |
| | | |
| | |
5% or More Shareholders: | |
| | | |
| | | |
| | |
2286404 Ontario Inc.(3) | |
| 50,254,401 | | |
| 17.9 | % | |
| 3.2 | % |
Robert Arsov(4) | |
| 27,392,307 | | |
| 9.4 | % | |
| 1.7 | % |
Bongino Inc.(5) | |
| 15,885,353 | | |
| 5.7 | % | |
| 1.0 | % |
(1) | Unless
otherwise noted, the business address of each of the following individuals is c/o Rumble
Inc., 444 Gulf of Mexico Dr. Longboat Key, FL 34228. |
(2) | Includes
a grant to Mr. Pavlovski of RSUs (as defined below) covering 1.1 million shares of
the Company’s Class A Common Stock pursuant to the Stock Incentive Plan.
Subject to Mr. Pavlovski’s continuous employment through the applicable vesting
dates, one-third of the RSUs will vest on each of September 16, 2023, September 16, 2024
and September 16, 2025. |
(3) | 2286404
Ontario Inc. (“Ontario”) is the record holder of the shares. Ontario is wholly
owned by Ryan Milnes and therefore, Mr. Milnes has voting and dispositive power over such
shares and may be deemed to beneficially own such shares. The business address of Ontario
is 2286404 Ontario Inc., PO Box 20112 Bayfield North, Barrie, Ontario, L4M6E9, Canada. |
(4) | The
business address of Mr. Arsov is c/o Willkie Farr & Gallagher LLP, 787 Seventh
Avenue, New York, NY 10019. |
(5) | Bongino
Inc. is the record holder of the shares. Bongino Inc. is wholly owned by Daniel Bongino.
The business address of Bongino Inc. is 2239 SW Manele Place, Palm City, FL 34990. |
(6) | Upon
the closing of the Business Combination, the Company will have two other classes of equity
securities outstanding, Class C Common Stock and Class D Common Stock, the beneficial
ownership of which is set forth in the table below. Each holder of ExchangeCo Shares was
issued one “tandem” share of Class C Common Stock, which serves to provide
the holder thereof with the same voting rights at the Company as one share of Class A
Common Stock. In addition, at the closing of the Business Combination, the Company issued
shares of Class D Common Stock to Mr. Pavlovski such that, after taking into account
the shares of Class A Common Stock (if any) and Class C Common Stock issued to
Mr. Pavlovski at Closing, upon Closing, Mr. Pavlovski has approximatley 85% of
the voting power of the Combined Entity on a fully-diluted basis. |
| |
Class C Common Stock | | |
Class D Common Stock | |
| |
Number of Shares Beneficially Owned | | |
% of Class | | |
Number of Shares Beneficially Owned | | |
% of Class | |
Directors and Executive Officers | |
| | |
| | |
| | |
| |
Christopher Pavlovski | |
| 104,682,403 | | |
| 62.4 | % | |
| 105,782,403 | | |
| 100 | % |
Wojciech Hlibowicki | |
| 4,618,833 | | |
| 2.8 | % | |
| — | | |
| — | |
Brandon Alexandroff | |
| 3,048,355 | | |
| 1.8 | % | |
| — | | |
| — | |
Tyler Hughes | |
| — | | |
| — | | |
| — | | |
| — | |
Michael Ellis | |
| — | | |
| — | | |
| — | | |
| — | |
Claudio Ramolo | |
| 2,173,220 | | |
| 1.3 | % | |
| — | | |
| — | |
Ryan Milnes(1) | |
| 50,254,401 | | |
| 30 | % | |
| — | | |
| — | |
Paul Cappuccio | |
| — | | |
| — | | |
| — | | |
| — | |
Robert Arsov | |
| — | | |
| — | | |
| — | | |
| — | |
Nancy Armstrong | |
| — | | |
| — | | |
| — | | |
| — | |
Ethan Fallang | |
| — | | |
| — | | |
| — | | |
| — | |
All executive officers and directors as a group (11 individuals) | |
| 164,777,212 | | |
| 98.3 | % | |
| 105,782,403 | | |
| 100 | % |
| |
| | | |
| | | |
| | | |
| | |
5% or More Shareholders: | |
| | | |
| | | |
| | | |
| | |
2286404 Ontario Inc. | |
| 50,254,401 | | |
| 30.0 | % | |
| — | | |
| — | |
Robert Arsov | |
| — | | |
| — | | |
| — | | |
| — | |
Bongino Inc. | |
| — | | |
| — | | |
| — | | |
| — | |
Directors and Executive Officers
The Company’s directors
and executive officers after the Closing are described in the Proxy Statement/Prospectus in the section titled “Management of
the Combined Entity Following the Business Combination,” which is incorporated herein by reference.
Director and Executive Compensation
The compensation of the named
executive officers of Rumble before the Business Combination is set forth in the Proxy Statement/Prospectus in the section titled “Executive
and Director Compensation,” which is incorporated herein by reference. The compensation of the directors of Rumble before the
Business Combination is set forth in the Proxy Statement/Prospectus un the section titled “Director Compensation,”
which is incorporated herein by reference.
At the Special Meeting of
Stockholders held on September 15, 2022, CF VI’s shareholders approved the Rumble Inc. 2022 Stock Incentive Plan (the “Stock
Incentive Plan”). A description of the material terms of the Stock Incentive Plan is set forth in the section of the Proxy
Statement/Prospectus titled “Stock Incentive Plan Proposal,” which is incorporated herein by reference. This summary
is qualified in its entirety by reference to the complete text of the Stock Incentive Plan, a copy of which is attached as Exhibit 10.5
to this Current Report on Form 8-K.
The information set forth
in this Current Report on Form 8-K under Item 5.02 is incorporated in this Item 2.01 by reference.
The Board of Directors will
determine the annual compensation to be paid to the members of the board of directors of the Company.
Certain Relationships and Related Transactions, and Director
Independence
Certain
relationships and related person transactions of CF VI and Rumble are described in the Proxy Statement/Prospectus in the section
titled “Certain Relationships and Related Person Transactions” and are incorporated herein by reference.
Reference
is made to the disclosure regarding director independence in the section of the Proxy Statement/Prospectus titled “Management
of the Combined Entity Following the Business Combination–Director Independence,” which is incorporated herein by reference.
The
information set forth under “Item 1.01 Entry into a Material Definitive Agreement—Exchange Agreement,” “—Key
Individual Subscription Agreement,” “—Amended and Restated Registration Rights Agreement,” and “Item 5.02
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain
Officers—Stock Incentive Plan” of this Current Report on Form 8-K is incorporated into this Item 2.01 by reference.
The
Company adopted a formal written policy effective upon the Business Combination providing that the Company’s executive officers,
directors, nominees for election as directors, beneficial owners of more than 5% of any class of the Company’s capital stock and
any member of the immediate family of any of the foregoing persons are not permitted to enter into a related party transaction with the
Company without the approval of the Company’s audit committee, subject to the exceptions described below.
A
related party transaction is a transaction, arrangement or relationship, or any series of similar transactions, arrangements or
relationships in which the Company was or is to be a participant in which the amount involves exceeds $120,000 in the aggregate in any
fiscal year, and in which a related party had or will have a direct or indirect material interest. Transactions involving compensation
for services provided to the Company as an employee or director and certain other transactions are not covered by this policy.
Under the policy, the audit
committee will review all of the relevant material facts and circumstances of the proposed related party transaction, satisfy itself
that it has been fully informed as to the material facts of the applicable related party’s relationship and interest, will determine
if the proposed related party transaction is fair to the Company, and will either approve or disapprove of the entry into the proposed
related party transaction,. In addition, under the Company’s Code of Conduct and Ethics, directors and executive officers have
an affirmative responsibility to seek determinations and prior authorizations or approvals of potential conflicts of interest exclusively
from the Audit Committee.
Legal Proceedings
Reference is made to the
disclosure regarding legal proceedings in the sections of the Proxy Statement/Prospectus titled “Information About CF VI—Legal
Proceedings” and “Information About Rumble—Legal Proceedings,” which are incorporated herein by reference.
Market Price of and Dividends on the Registrant’s Common
Equity and Related Stockholder Matters
Following
the Closing of the Business Combination, the Company’s Class A Common Stock began trading on the Nasdaq under the symbol “RUM”
and its warrants began trading on the Nasdaq under the symbol “RUMBW” on September 19, 2022. The Company has not paid any
cash dividends on its ordinary shares to date.
The
Company’s Board of Directors, in its sole discretion, will make any determination from time to time with respect to the use of
any excess cash accumulated, which may include, among other uses, the payment of dividends on the Company’s Class A Common
Stock.
Recent Sales of Unregistered Securities
Reference is made to the
disclosure set forth under Item 3.02 of this Current Report on Form 8-K, which is incorporated herein by reference.
Description of Registrant’s Securities to be Registered
The description of the Company’s
securities is contained in the Proxy Statement/Prospectus in the section titled “Charter Amendment Proposals,” which
is incorporated herein by reference.
Indemnification of Directors and Officers
The description of the indemnification
arrangements with the Company’s directors and officers is contained in Item 1.01 of this Current Report on Form 8-K, which is incorporated
herein by reference.
Financial Statements and Supplementary Data
Reference is made to the
disclosure set forth under Item 9.01 of this Current Report on Form 8-K concerning the financial statements of the Company and Management’s
Discussion and Analysis of Financial Condition and Results of Operations of Rumble.
Changes in and Disagreements with Accountants on Accounting
and Financial Disclosure
The information set forth
under Item 4.01 of this Current Report on Form 8-K is incorporated herein by reference.