Item 1.01 Entry into a Material Definitive Agreement.
Merger Agreement
On
The Merger Agreement provides that, subject to the terms and conditions set
forth therein, at the effective time of the Merger (the "Effective Time"), (1)
Merger Sub will be merged with and into the Company (the "Merger"), with the
Company continuing as the surviving corporation and wholly owned subsidiary of
Acquiror, and (2) each share of public common stock, par value
Pursuant to the Merger Agreement, as of the Effective Time, (1) each option to purchase shares of Common Stock (each, a "Company Option") that is outstanding and unexercised as of immediately prior to the Effective Time (whether vested or unvested and whether subject to service-based or performance-based vesting conditions), (i) will be deemed to be fully vested (including with respect to any performance-based vesting requirements), and (ii) will be converted into the right to receive an amount, in cash, without interest, equal to the product of (A) the total number of shares of Common Stock subject to such Company Option (after giving effect to (1)(i) of this paragraph) and (B) the excess, if any, of the Merger Consideration over the exercise price per share of Common Stock set forth in such Company Option, (2) each share of Common Stock subject to vesting or forfeiture ("Company Restricted Stock") that is outstanding as of immediately prior to the Effective Time, (i) will be deemed to be fully vested (including with respect to any performance-based vesting requirements), and (ii) will be converted into the right to receive an amount, in cash, without interest, equal to the product of (A) the number of shares of Company Restricted Stock held by such holder (after giving effect to (2)(i) of this paragraph) and (B) the Merger Consideration and (3) each Company restricted stock unit ("Company RSU") that is outstanding as of immediately prior to the Effective Time, (i) will be deemed to be fully vested (including with respect to any performance-based vesting requirements, but excluding certain Company performance-based RSUs that were granted in 2023, which will vest at the greater of target or actual level of performance) as to the number of shares of Common Stock issuable pursuant to such Company RSU, and (ii) will be converted into the right to receive an amount, in cash, without interest, equal to the product of (A) such number of shares of Common Stock issuable pursuant to such Company RSU held by such holder (after giving effect to (3)(i) of this paragraph) and (B) the Merger Consideration.
The Board of Directors of the Company (the "Board") has unanimously approved the Merger Agreement and the transactions contemplated thereby, including the Merger.
The Company, Acquiror and Merger Sub each have made customary representations, warranties and covenants in the Merger Agreement. Among other things, the Company has agreed (1) to conduct its business in the ordinary course and consistent with past practice during the period between the execution of the Merger Agreement and the closing of the Merger (the "Closing"), and not to take certain actions prior to the Closing without the prior written consent of Acquiror (which consent will not be unreasonably withheld, conditioned or delayed), (2) to convene and hold a meeting of its stockholders for the purpose of obtaining the adoption of the Merger Agreement by the affirmative vote of the holders of a majority of the issued and outstanding shares of Common Stock (the "Company Stockholder Approval") and (3) subject to certain exceptions, not to (i) solicit alternative acquisition proposals from third parties or to provide non-public information to, and enter into discussions or negotiations with, third parties regarding alternative acquisition proposals or (ii) change, qualify, withhold, withdraw or modify in a manner adverse to Acquiror the recommendation of the Board that the Company's stockholders adopt the Merger Agreement. Subject to certain limitations as set forth in the Merger Agreement, each of the Company, Acquiror and Merger Sub has agreed to use their respective reasonable best efforts to obtain all required regulatory approvals.
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The Closing is subject to receipt of the Company Stockholder Approval. The Closing is also subject to other customary conditions, including (1) the absence of any order or law that prohibits, enjoins or makes illegal the consummation of the Merger, (2) the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and receipt of all other clearances or approvals under other applicable antitrust laws, (3) the accuracy of the representations and warranties contained in the Merger Agreement (subject to certain materiality and material adverse effect qualifications) and compliance with the covenants and agreements in the Merger Agreement in all material respects by the parties to the Merger Agreement, and (4) in the case of Acquiror and Merger Sub, the absence of a material adverse effect relating to the Company.
The Merger Agreement contains certain termination rights, including the right of
either the Company or Acquiror to terminate the Merger Agreement if the Merger
is not consummated by
The foregoing description of the Merger Agreement does not purport to be complete and is qualified in its entirety by reference to the Merger Agreement, which is filed as Exhibit 2.1 to this Current Report on Form 8-K and is incorporated herein by reference. The Merger Agreement has been included as an exhibit to this Current Report on Form 8-K to provide investors with information regarding its terms. It is not intended to provide any other factual information about the Company, Parent, Acquiror, Merger Sub or their respective subsidiaries. The representations, warranties and covenants contained in the Merger Agreement were made only for purposes of the Merger Agreement as of the specific dates therein, were solely for the benefit of the parties to the Merger Agreement, may be subject to limitations agreed upon by the contracting parties, including being qualified by confidential disclosures made for the purposes of allocating contractual risk among the parties to the Merger Agreement instead of establishing these matters as facts, and may be subject to standards of materiality applicable to the contracting parties that differ from those applicable to investors. Stockholders should not rely on the representations, warranties and covenants or any descriptions thereof as characterizations of the actual state of facts or condition of the parties thereto or any of their respective subsidiaries or affiliates. Moreover, information concerning the subject matter of representations and warranties may change after the date of the Merger Agreement, which subsequent information may or may not be fully reflected in the Company's public disclosures.
Earn-Out Amendment and Settlement Agreement
On
Item 8.01 Other Events. Voting Agreement
In connection with the execution of the Merger Agreement, Acquiror has entered
into a voting agreement (each, a "Voting Agreement") with each of (1)
Press Release
On
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits Exhibit No. Description 2.1 Agreement and Plan of Merger, dated as ofMarch 31, 2023 , by and amongHeska Corporation ,Antech Diagnostics, Inc. ,Helsinki Merger Sub LLC and, solely for purpose of Section 9.15 of the Merger Agreement,Mars, Incorporated * 2.2 Earn-Out Amendment and Settlement Agreement, dated as ofMarch 31, 2023 , by and amongHeska Corporation ,Heska GmbH ,F2 Beteiliguns GmbH & Co. KG ,F3P GmbH , Mr.Ingo Fraedrich and Mr.Thomas Fraedrich ** 99.1 Form of Voting Agreement 99.2 Press Release, datedApril 3, 2023 , jointly issued byHeska Corporation andMars, Incorporated 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
* Schedules and exhibits have been omitted pursuant to Item 601(b)(2) of
Regulation S-K.
** Certain confidential information contained in this exhibit has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed. Additionally, certain personally identifiable information has been omitted from this exhibit pursuant to Item 601(a)(6) under Regulation S-K.
Forward-Looking Statements
This Current Report on Form 8-K includes statements that are forward-looking statements made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the proposed acquisition of the Company, stockholder and regulatory approvals, the expected timetable for completing the proposed transaction and any other statements regarding the Company's future expectations, beliefs, plans, objectives, financial conditions, assumptions or future events or performance that are not historical facts. This information may involve risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. These risks and uncertainties include, but are not limited to: failure to obtain the required vote of the Company's stockholders in connection with the proposed transaction; the timing to consummate the proposed transaction and the risk that the proposed transaction may not be completed at all or the occurrence of any event, change or other circumstances that could give rise to the termination of the Merger Agreement; the risk that the conditions to closing of the proposed transaction may not be satisfied or waived; the risk that a governmental or regulatory approval that may be required for the proposed transaction is not obtained or is obtained subject to conditions that are not anticipated; potential litigation relating to, or other unexpected costs resulting from, the proposed transaction; legislative, regulatory and economic developments; and the diversion of management's time on transaction-related issues. The Company can give no assurance that the conditions to the proposed transaction will be satisfied, or that it will close within the anticipated time period.
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All statements, other than statements of historical fact, should be considered
forward-looking statements made in good faith by the Company, as applicable, and
are intended to qualify for the safe harbor from liability established by the
Private Securities Litigation Reform Act of 1995. When used in this Current
Report on Form 8-K, or any other documents, words such as "anticipate,"
"believe," "estimate," "expect," "forecast," "goal," "intend," "objective,"
"plan," "project," "seek," "strategy," "target," "will" and similar expressions
are intended to identify forward-looking statements. These forward-looking
statements are based on the beliefs and assumptions of management at the time
that these statements were prepared and are inherently uncertain. Such
forward-looking statements are subject to risks and uncertainties that could
cause actual results to differ materially from those expressed or implied in the
forward-looking statements. These risks and uncertainties, as well as other
risks and uncertainties that could cause the Company's actual results to differ
materially from those expressed in the forward-looking statements, are described
in greater detail under the heading "Item 1A. Risk Factors" in the Company's
Annual Report on Form 10-K for the year ended
Additional Information about the Merger and Where to Find It
In connection with the Merger, the Company expects to file a proxy statement, as
well as other relevant materials, with the
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Participants in the Solicitation
This Current Report on Form 8-K does not constitute a solicitation of proxy, an
offer to purchase or a solicitation of an offer to sell any securities. The
Company, its directors and certain of its officers and employees, may be deemed
to be participants in the solicitation of proxies from Company stockholders in
connection with the Merger. Information about the Company's directors and
executive officers is set forth in its definitive proxy statement for its 2023
annual meeting of stockholders filed with the
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