provided in the Business Combination Agreement, following the
Effective Time, each Exchanged Option will continue to be governed
by the same terms and conditions (including vesting and
exercisability terms) as were applicable to the corresponding
former Legacy Fisker option immediately prior to the Effective
Time.
No certificates or scrip or shares representing fractional shares
of Common Stock were issued upon the exchange of Legacy Fisker
Common Stock. Any fractional shares were rounded up or down to the
nearest whole share of Common Stock, with a fraction of 0.5 rounded
up. No cash settlements were made with respect to fractional shares
eliminated by such rounding.
Pursuant to our prior amended and restated certificate of
incorporation, each share of Spartan’s Class B common stock,
par value $0.0001 per share (the “Class B common stock”),
converted into one share of Spartan’s Class A common stock,
par value $0.0001 per share (the “Class A common stock”), at
the Closing. After the Closing and following the effectiveness of
our second amended and restated certificate of incorporation
(“Certificate of Incorporation”), (i) each share of Class A
common stock was automatically reclassified, redesignated and
changed into one validly issued, fully paid and non-assessable share of newly
authorized Class A common stock, without any further action by
us or any stockholder and (ii) each share of Class B
common stock was automatically reclassified, redesignated and
changed into one validly issued, fully paid and non-assessable share of newly
authorized Class B common stock, without any further action by
us or any stockholder.
On October 29, 2020, a number of purchasers (each, a
“Subscriber”) purchased from the Company an aggregate of 50,000,000
shares of Class A common stock (the “PIPE Shares”), for a
purchase price of $10.00 per share and an aggregate purchase price
of $500 million, pursuant to separate subscription agreements
(each, a “Subscription Agreement”) entered into effective as of
July 10, 2020. Pursuant to the Subscription Agreements, the
Company gave certain registration rights to the Subscribers with
respect to the PIPE Shares. The sale of PIPE Shares was consummated
concurrently with the Closing.
On October 14, 2020, Fisker and Spartan entered into a
Cooperation Agreement with Magna International Inc. (“Magna”)
setting forth certain terms for the development of a full electric
vehicle (the “Cooperation Agreement”). Pursuant to the terms of the
Cooperation Agreement, we issued warrants to purchase 19,474,454
shares of our Class A common stock at an exercise price of
$0.01 per share to Magna on October 29, 2020.
Our Class A common stock and Public Warrants are currently
listed on the NYSE under the symbols “FSR” and “FSR WS,”
respectively.
Emerging Growth Company
We are an “emerging growth company,” as defined in
Section 2(a) of the Securities Act of 1933, as amended (the
“Securities Act”), as modified by the Jumpstart Our Business
Startups Act of 2012 (the “JOBS Act”), and we may take advantage of
certain exemptions from various reporting requirements that are
applicable to other public companies that are not emerging growth
companies, including, but not limited to, not being required to
comply with the auditor attestation requirements of
Section 404 of the Sarbanes-Oxley Act, reduced disclosure
obligations regarding executive compensation in our periodic
reports and proxy statements, and exemptions from the requirements
of holding a nonbinding advisory vote on executive compensation and
stockholder approval of any golden parachute payments not
previously approved.
Further, Section 102(b)(1) of the JOBS Act exempts
emerging growth companies from being required to comply with new or
revised financial accounting standards until private companies
(that is, those that have not had a registration statement under
the Securities Act declared effective or do not have a class of
securities registered under the Exchange Act) are required to
comply with the new or revised financial accounting standards. The
JOBS Act provides that a company can elect to opt out of the
extended transition period and comply with the requirements that
apply to non-emerging
growth companies but any such an election to opt out is
irrevocable. We have elected not to opt out of such extended
transition period which means that when a standard is issued or
revised and it has different application dates for public or
private companies, we, as an emerging growth company, can adopt the
new or revised standard at the time private companies adopt the new
or revised standard. This may make comparison of our financial
statements with another public company which is neither an emerging
growth company nor an emerging growth company which has opted out
of using the extended transition period difficult or impossible
because of the potential differences in accounting standards
used.
We will remain an emerging growth company until the earlier of:
(1) the last day of the fiscal year (a) following the
fifth anniversary of the closing of the Company’s initial public
offering, (b) in which we have total annual revenue of at
least $1.07 billion, or (c) in which we are deemed to be
a large accelerated filer, which means the market value of our
common equity that is held by non-affiliates exceeds
$700 million as of the end of the prior fiscal year’s second
fiscal quarter; and (2) the date on which we have issued more
than $1.00 billion in non-convertible debt securities during
the prior three-year period. References herein to “emerging growth
company” have the meaning associated with it in the JOBS Act.
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