Item 5.07. |
Submission of Matters to a Vote of Security Holders. |
As previously disclosed in the Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission (the
SEC) on August 1, 2023 by Atlas Energy Solutions Inc. (the Company or Atlas), the Company previously entered into a Master Reorganization Agreement, dated as of July 31, 2023 (the MRA), with
Atlas Sand Operating, LLC, a Delaware limited liability company and a direct, majority owned subsidiary of the Company (Opco), New Atlas HoldCo Inc., a Delaware corporation and a direct, wholly owned subsidiary of the Company (New
Atlas), AESI Merger Sub Inc., a Delaware corporation and a direct, wholly owned subsidiary of New Atlas (PubCo Merger Sub), Atlas Operating Merger Sub, LLC, a Delaware limited liability company and a direct, wholly owned subsidiary
of New Atlas (Opco Merger Sub), and Atlas Sand Holdings, LLC, a Delaware limited liability company (Holdings), pursuant to which the Company will reorganize under a new public holding company (the Reorganization).
The Reorganization will allow the Company, among other things, to eliminate its Up-C structure and to transition to a single class of common stock held by all stockholders, as opposed to the two
classes of common stock of the Company that are currently authorized, issued and outstanding: the Class A Common Stock, par value $0.01 per share (such shares, the Existing Class A Shares), and the Class B Common Stock,
par value $0.01 per share (such shares, the Existing Class B Shares and, together with the Existing Class A Shares, the Existing Common Stock).
Holdings currently holds all of the Existing Class B Shares and all of the issued and outstanding membership interests in Opco, designated as
Common Units (the Opco Units), not held by the Company. As used in this Current Report on Form 8-K, the term Downstairs Holder(s) refers to Holdings or, in the event that
any of the Opco Units and corresponding Existing Class B Shares currently held by Holdings are distributed or otherwise transferred prior to the consummation of the Reorganization, the holders of such securities following such distribution or
transfer.
Pursuant to the MRA, (a) PubCo Merger Sub will be merged with and into the Company (the PubCo Merger), as a result of which
(i) each of the Existing Class A Shares then issued and outstanding will be exchanged for one share of common stock of New Atlas, par value $0.01 per share (the New Atlas Common Stock), (ii) all of the Existing Class B
Shares then issued and outstanding will be surrendered by the Downstairs Holder(s) and cancelled for no consideration and (iii) the Company will survive the PubCo Merger (in such capacity, the Surviving Corporation) as a direct,
wholly owned subsidiary of New Atlas; and (b) Opco Merger Sub will be merged with and into Opco (the Opco Merger and, together with the PubCo Merger, the Mergers), as a result of which (i) each of the Opco Units
then issued, outstanding and held by the Downstairs Holder(s) will be exchanged for one share of New Atlas Common Stock and (ii) Opco will become a wholly owned subsidiary (partially direct and partially indirect through the Surviving
Corporation (i.e. the Company)) of New Atlas. After completion of the Reorganization, New Atlas will replace the Company as the publicly held entity and, through its subsidiaries, will conduct all of the operations currently conducted by the
Company, and the Company will remain the managing member of Opco.
The consummation of the Reorganization, including the Mergers, is subject to the
satisfaction or waiver of certain specified conditions in the MRA, including, among other things, (i) the receipt of approval of the Reorganization by the holders of a majority of the voting power of the outstanding shares of Existing Common
Stock entitled to vote thereon, (ii) the registration statement on Form S-4 filed by New Atlas in connection with the Mergers (the Reorganization Registration Statement) having been declared
effective by the SEC under the Securities Act of 1933, as amended (the Securities Act), (iii) the shares of New Atlas Common Stock issuable in connection with the Mergers having been approved for listing on the New York Stock Exchange
(the NYSE) and (iv) at least 20 calendar days having elapsed since the Company first mailed the information statement of the Company and prospectus of New Atlas that are each included in the Reorganization Registration Statement to
the Companys stockholders.
The foregoing description of the Reorganization, the MRA and the transactions contemplated thereby is a summary only,
does not purport to be complete and is subject to, and qualified in its entirety by, the full text of the MRA, a copy of which was filed with the SEC on August 1, 2023 as Exhibit 2.1 to the Companys Current Report on Form 8-K and is incorporated by reference into this Item 5.07.