Item 8.01 Other Events.
On October 7, 2020, Stable Road Acquisition Corp.
(“Stable Road” or “Parent”) announced a proposed business combination (the “Proposed Transaction”)
with Momentus Inc. (“Momentus” or the “Company”) pursuant to that certain Agreement and Plan of Merger, dated
as of October 7, 2020, as amended on March 5, 2021, April 6, 2021 and June 29, 2021 (as it may be further amended and/or restated from
time to time, the “Merger Agreement”), by and among Stable Road, Momentus, Project Marvel First Merger Sub, Inc. and Project
Marvel Second Merger Sub, LLC.
On November 2, 2020, Stable Road filed with the Securities
and Exchange Commission (the “SEC”) a Registration Statement on Form S-4 that included a proxy statement of Stable Road, a
consent solicitation statement of Momentus and prospectus of Stable Road. Stable Road filed with the SEC an amended Registration Statement
on Form S-4 on each of December 14, 2020, March 8, 2021, June 29, 2021, July 12, 2021, July 19, 2021 and July 21, 2021 (as amended, the
“Registration Statement”). The Registration Statement was declared effective by the SEC on July 22, 2021. On July 23, 2021,
Stable Road filed with the SEC a definitive proxy statement and final prospectus of Stable Road (the “Proxy Statement”).
On December 3, 2020, a complaint was filed by a purported
stockholder of the Company against the Company and its board of directors in the United States District Court for the Southern District
of New York, in a case captioned Wallace v. Stable Road Acquisition Corp., et al., No. 1:20-cv-10193. The complaint alleges
that the Company’s Registration Statement, as filed on November 2, 2020, omitted certain material information regarding the Company’s
planned transaction with Momentus, in violation of the securities laws. As relief, the complaint seeks an injunction barring the
Company from proceeding with a stockholder vote or consummating the transaction absent additional disclosures, as well as unspecified
costs and damages. A second complaint was filed by another purported stockholder of the Company against the Company and its board
of directors in the Supreme Court of the State of New York for the County of New York, in a case captioned Ciccotelli v. Stable Road
Acquisition Corp., et al., No. 656895/2020, on December 9, 2020, raising similar allegations and seeking similar relief. In
addition to the two complaints, the Company received three letters, dated November 9, 2020, November 19, 2020, and August 3, 2021, respectively,
from purported stockholders raising similar allegations.[1]
While both Stable Road and Momentus believe that the
disclosures set forth in Proxy Statement comply fully with applicable law, to avoid nuisance, cost and distraction, and to preclude any
efforts to delay the closing of the Proposed Transaction, Stable Road is voluntarily supplementing the Proxy Statement with the supplemental
disclosures set forth below (the “Supplemental Disclosures”). Nothing in the Supplemental Disclosures shall be deemed an admission
of the legal necessity or materiality under applicable law of any of the disclosures set forth herein. To the contrary, Stable Road and
Momentus specifically deny all allegations in the demand letters that any additional disclosure was or is required. Stable Road and Momentus
believe these purported shareholders’ claims are without merit.
Supplemental Disclosures to the Proxy Statement
The following supplemental information should be read in conjunction with
the Proxy Statement, which should be read in its entirety. All page references are to pages in the Proxy Statement, and terms used below,
unless otherwise defined, have the meanings set forth in the Proxy Statement. Underlined text shows text being added to a referenced disclosure
in the Proxy Statement.
The Proxy Statement is hereby amended
as follows:
[1]
Separately, a purported stockholder of SRAC filed a putative class action complaint against the Company, Sponsor, Brian Kabot, James
Norris, Momentus, and Mikhail Kokorich on July 15, 2021, in the United States District Court for the Central District of California,
in a case captioned Jensen v. Stable Road Acquisition Corp., et al., No. 2:21-cv-05744. The complaint alleges that the
defendants omitted certain material information in their public statements and disclosures regarding the Proposed Transaction in
violation of the securities laws, and seeks damages on behalf of a putative class of stockholders who purchased SRAC stock between
October 7, 2020 and July 13, 2021. On July 22, 2021 and August 4, 2021, respectively, two other purported stockholders filed
putative class action complaints in the same court, in cases captioned Hall v. Stable Road Acquisition Corp., et al., No.
2:21-cv-05943, and Depoy v. Stable Road Acquisition Corp., et al., No. 2:21-cv-06287, asserting substantially similar claims
and seeking substantially similar relief. Other, similar suits may follow. On July 20, 2021, another purported stockholder of SRAC
sent a letter demanding that the Company provide holders of the Company’s Class A Common Stock with a separate class vote on
the Class A Share Increase Amendment. The Company has responded to this stockholder in writing to explain its view that the demand is without merit.
The following disclosure supplements and restates the fourth paragraph
under the section of the Proxy Statement captioned “Background of the Business Combination” beginning on page 129 of the Proxy
Statement:
In
the process that led to identifying Momentus as an attractive investment opportunity, SRAC’s management team evaluated over 50 potential
business combination targets, entered into non-disclosure agreements with approximately 26 potential business combination targets
(other than Momentus), submitted non-binding indications of interest with respect to three potential business combination targets
and submitted a non-binding letter of intent with respect to one potential business combination target (other than Momentus). SRAC
engaged in more extensive negotiations with two potential acquisition targets (other than Momentus), Target A and Target B. None
of the approximately 26 non-disclosure agreements contained standstill or “don’t ask, don’t waive” provisions.
The following disclosure supplements and restates the seventeenth paragraph
under the section of the Proxy Statement captioned “Background of the Business Combination” beginning on page 129 of the Proxy
Statement:
Also on September 2, 2020, SRAC executed
a Placement Agent Agreement with negotiated fees with Evercore, who was also then serving as Momentus’ financial advisor, and on
September 3, 2020, SRAC executed a Placement Agent Agreement with Cantor, pursuant to which Evercore and Cantor would serve as co-placement agents
for the proposed PIPE investment. Both Momentus and SRAC provided consent to Evercore’s roles as Momentus’ financial advisor
and co-placement agent for SRAC for the proposed PIPE investment. Pursuant to the Placement Agent Agreements, each of Evercore
and Cantor is entitled to a fee in connection with serving as a co-placement agent equal to 2.0% of the aggregate gross proceeds received
by SRAC from the PIPE investment, which fees are subject to the consummation of the PIPE investment and the Business Combination. The
Placement Agent Agreements also include customary out-of-pocket expense reimbursement provisions. Evercore is also serving as Momentus’
financial advisor in connection with the Business Combination, and pursuant to its engagement letter with Momentus, Evercore will also
be entitled to an additional financial advisory fee in connection with the Business Combination equal to $14.6 million, subject to reduction
to $12.3 million based on the amount of redemptions by SRAC’s public stockholders.
The following disclosure supplements and restates the sixth bullet point
under the section of the Proxy Statement captioned “Interests of Certain SRAC Persons in the Business Combination” beginning
on page 148 of the Proxy Statement:
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the continuation of Brian Kabot, one of our existing directors, as a director of the Combined
Company following the Closing. Mr. Kabot will be entitled to receive any cash fees or equity awards that the Combined Company’s
board of directors determines to pay its non-executive directors. There have been no other discussions of or agreements regarding the
employment of any SRAC officers, directors, or employees by the Combined Company following the closing of the Business Combination.
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Additional Information
This Current Report on Form 8-K (this “Report”) relates
to the Proposed Transaction between Stable Road and Momentus. In connection with the Proposed Transaction, Stable Road has filed with
the SEC a registration statement on Form S-4, as amended (the “Registration Statement”) that includes a proxy statement of
Stable Road, a consent solicitation statement of Momentus and prospectus of Stable Road, and each party will file other documents with
the SEC regarding the Proposed Transaction. The Registration Statement has been declared effective by the SEC. A definitive proxy statement/consent
solicitation statement/prospectus and other relevant documents have been sent to the stockholders of Stable Road and Momentus, seeking
any required stockholder approval, and is not intended to provide the basis for any investment decision or any other decision in respect
of such matters. STABLE ROAD’S STOCKHOLDERS AND OTHER INTERESTED PERSONS ARE ADVISED TO READ THE EFFECTIVE REGISTRATION STATEMENT
AND DEFINITIVE PROXY STATEMENT/CONSENT SOLICITATION/PROSPECTUS IN CONNECTION WITH STABLE ROAD’S SOLICITATION OF PROXIES FOR STABLE
ROAD’S SPECIAL MEETING OF STOCKHOLDERS TO APPROVE THE TRANSACTIONS CONTEMPLATED BY THE MERGER AGREEMENT, BECAUSE THEY CONTAIN IMPORTANT
INFORMATION ABOUT THE PROPOSED TRANSACTION. The definitive proxy statement/consent solicitation statement/prospectus was mailed to Stable
Road’s stockholders as of the record date (July 7, 2021) established for voting on the Proposed Transaction and the other matters
to be voted upon at the special meeting of stockholders. Stable Road’s stockholders are also able to obtain copies of the proxy
statement/consent solicitation statement/prospectus, and all other relevant documents filed or that will be filed with the SEC in connection
with the Proposed Transaction, without charge at the SEC’s website at http://www.sec.gov or by directing a request to: Stable Road
Capital LLC, James Norris, CPA, Chief Financial Officer, 1345 Abbot Kinney Blvd., Venice, CA 90291; Tel: 310-956-4919; james@stableroadcapital.com.
Forward-Looking Statements
This Report may contain a number of “forward-looking statements”.
These forward-looking statements are based on Stable Road’s or Momentus’ management’s current expectations, estimates,
projections and beliefs, as well as a number of assumptions concerning future events. When used in this press release, the words “estimates,”
“projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,”
“believes,” “seeks,” “may,” “will,” “should,” “future,” “propose”
and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify
forward-looking statements.
These forward-looking statements are not guarantees of future performance,
conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of
which are outside Stable Road’s and Momentus’ management’s control, that could cause actual results to differ materially
from the results discussed in the forward-looking statements. These risks, uncertainties, assumptions and other important factors include,
but are not limited to: changes in domestic and foreign business, market, financial, political and legal conditions; the inability of
the parties to successfully or timely consummate the proposed business combination, including the risk that any required regulatory approvals
are not obtained, are delayed or are subject to unanticipated conditions that could adversely affect the combined company or the expected
benefits of the proposed business combination or that the approval of the stockholders of Stable Road or Momentus is not obtained; failure
to realize the anticipated benefits of the proposed business combination; risks relating to the uncertainty of the projected financial
information with respect to Momentus; risks related to the development of our water-based propulsion system (microwave electrothermal
thruster) and other technology, including failures, setbacks or delays in reaching objectives and other milestones; risks related to the
ability of customers to cancel contracts for convenience; risks related to compliance with the National Security Agreement; risks related
to the rollout of Momentus’ business and the timing of expected business milestones; the effects of competition on Momentus’
future business; level of product service or product or launch failures that could lead customers to use competitors’ services;
developments and changes in laws and regulations, including increased regulation of the space transportation industry; the impact of significant
investigative, regulatory or legal proceedings; the amount of redemption requests made by Stable Road’s public stockholders; the
ability of Stable Road or the combined company to issue equity or equity-linked securities in connection with the proposed business combination
or in the future; and other risks and uncertainties indicated from time to time in the definitive proxy statement/consent solicitation
statement/prospectus relating to the proposed business combination, including those under “Risk Factors” therein, and other
documents filed or to be filed with the SEC by Stable Road. You are cautioned not to place undue reliance upon any forward-looking statements,
which speak only as of the date made.
Forward-looking statements included in this press release speak only as
of the date of this press release. Except as required by law, neither Stable Road nor Momentus undertakes any obligation to update or
revise its forward-looking statements to reflect events or circumstances after the date of this release. Additional risks and uncertainties
are identified and discussed in the Stable Road’s reports filed with the SEC and available at the SEC’s website at www.sec.gov.
Disclaimer
This Report is for informational purposes only and
is neither an offer to purchase, nor a solicitation of an offer to sell, subscribe for or buy any securities or the solicitation of any
vote in any jurisdiction pursuant to the proposed transactions or otherwise, nor shall there be any sale, issuance or transfer or securities
in any jurisdiction in contravention of applicable law. No offer of securities shall be made except by means of a prospectus meeting the
requirements of Section 10 of the Securities Act of 1933, as amended.
INVESTMENT IN ANY SECURITIES DESCRIBED HEREIN HAS
NOT BEEN APPROVED OR DISAPPROVED BY THE SEC OR ANY OTHER REGULATORY AUTHORITY NOR HAS ANY AUTHORITY PASSED UPON OR ENDORSED THE MERITS
OF THE PROPOSED TRANSACTIONS OR THE ACCURACY OR ADEQUACY OF THE INFORMATION CONTAINED HEREIN. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
Participants in the Solicitation
Stable Road, Momentus and certain of their respective
directors, executive officers and other members of management and employees may be deemed participants in the solicitation of proxies
of Stable Road’s stockholders in connection with the Proposed Transaction. STABLE ROAD’S STOCKHOLDERS AND OTHER INTERESTED
PERSONS MAY OBTAIN, WITHOUT CHARGE, MORE DETAILED INFORMATION REGARDING THE DIRECTORS AND OFFICERS OF STABLE ROAD IN ITS ANNUAL REPORT
ON FORM 10-K/A FOR THE FISCAL YEAR ENDED DECEMBER 31, 2020, WHICH WAS FILED WITH THE SEC ON JUNE 10, 2021. INFORMATION REGARDING THE PERSONS
WHO MAY, UNDER SEC RULES, BE DEEMED PARTICIPANTS IN THE SOLICITATION OF PROXIES TO STABLE ROAD’S STOCKHOLDERS IN CONNECTION WITH
THE PROPOSED TRANSACTION AND OTHER MATTERS TO BE VOTED AT THE PROPOSED TRANSACTION SPECIAL MEETING IS SET FORTH IN THE EFFECTIVE REGISTRATION
STATEMENT FOR THE PROPOSED TRANSACTION. Additional information regarding the interests of participants in the solicitation of proxies
in connection with the Proposed Transaction is included in the effective Registration Statement that Stable Road filed with the SEC.