Form 8-K
8-K — Strive, Inc.
Accession: 0000950103-26-015690
Filed: 2026-10-16
Period: 2026-10-15
CIK: 0001920406
SIC: 6199 (FINANCE SERVICES)
Item: Entry into a Material Definitive Agreement
Item: Other Events
Item: Financial Statements and Exhibits
Documents
8-K — dp255095_8k.htm (Primary)
EX-1.1 — EXHIBIT 1.1 (dp255095_ex0101.htm)
EX-99.1 — EXHIBIT 99.1 (dp255095_ex9901.htm)
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities
Exchange Act of 1934
Date of Report (Date of earliest event reported):
October 15, 2026
STRIVE, INC.
(Exact name of Company as specified in its charter)
Nevada
001-41612
88-1293236
(State or other jurisdiction
of incorporation)
(Commission File Number)
(IRS Employer
Identification No.)
200 Crescent Ct, Suite 1400, Dallas, TX
75201
(Address of principal executive offices)
(Zip Code)
(855) 427-7360
(Company’s telephone number, including area
code)
(Former name or former address, if changed since
last report)
Check the appropriate box below if the Form 8-K
filing is intended to simultaneously satisfy the filing obligation of the Company under any of the following provisions:
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Class A Common Stock, $0.001 par value per share
ASST
The Nasdaq Stock Market LLC
Variable Rate Series A Perpetual Preferred Stock, par value $0.001 per share
SATA
The Nasdaq Global Market
Indicate by check mark whether the Company is
an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.
Emerging Growth Company ☒
If an emerging growth company, indicate by check
mark if the Company has elected not to use the extended transition period for complying with any new or revised financial accounting standards
provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 1.01
Entry into a Material Definitive Agreement
On October 15, 2026,
Strive, Inc. (the “Company”) entered into an underwriting agreement (the “Underwriting
Agreement”) with Barclays Capital Inc. and Cantor Fitzgerald & Co., as the joint book-running managers and representatives of
the several underwriters (the “Underwriters”), relating to the issuance and sale in an underwritten offering (the “Offering”)
of 7,000,000 shares (the “Shares”) of the Company’s 15.00% Series A Perpetual SATS Preferred Stock, $0.001 par value
per share (the “SATS Stock”), an upsize of 2,000,000 shares over the amount previously announced, at a public offering price
of $90 per share. The issuance and sale of the SATS Stock is scheduled to settle on October 20, 2026, subject to customary closing conditions.
Certain terms of the SATS Stock are described in more detail in the Company’s press release announcing the pricing of the Offering,
which is filed herewith as Exhibit 99.1 and incorporated herein by reference.
The Company estimates that the gross proceeds
from the Offering will be approximately $630 million, before deducting the underwriting discounts and commissions and the Company’s
estimated offering expenses. The Company intends to use the net proceeds from the Offering for general corporate purposes, including,
among other things, the acquisition of bitcoin and bitcoin-related products and for working capital, the purchase of income generating
assets to grow the Company’s business, other capital expenditures, and/or repurchases of shares of the Company’s Class A common
stock, par value $0.001 per share (the “Class A Common Stock”), or its Variable Rate Series A Perpetual Preferred Stock, par
value $0.001 per share (the “SATA Stock”). The Company may also use such proceeds to fund acquisitions of businesses, assets
or technologies that complement the Company’s current business.
The Underwriting Agreement contains customary
representations, warranties, and agreements by the Company, customary conditions to closing, indemnification obligations of the Company
and the Underwriters, including for liabilities under the Securities Act of 1933, as amended, other obligations of the parties, and termination
provisions.
The Offering is being made pursuant to an effective
shelf registration statement on Form S-3ASR (Registration No. 333-290252) on file with the Securities and Exchange Commission (the “SEC”).
The Offering will be made only by means of a prospectus supplement and an accompanying prospectus.
The foregoing description of the Underwriting
Agreement does not purport to be complete and is subject to, and qualified in its entirety by, the Underwriting Agreement, which is filed
herewith as Exhibit 1.1 and incorporated herein by reference.
Item 8.01.
Other Events.
On October
15, 2026, the Company issued a press release relating to the pricing of the Offering. A copy of the press
release is filed as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference.
Cautionary Statement Regarding Forward-Looking
Statements
Certain statements herein and the press release
attached hereto may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform
Act of 1995, Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Rule 175 promulgated thereunder,
and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Rule 3b-6 promulgated thereunder,
which statements involve inherent risks and uncertainties. Examples of forward-looking statements include, but are not limited to, express
or implied statements regarding the outlook and expectations of Strive and its subsidiaries, the strategic benefits and financial benefits
of the merger transaction with Semler Scientific, Inc. (the “merger transaction”), including the expected impact of the merger
transaction on Strive’s future financial performance, the ability to successfully integrate the combined businesses, the estimated
proceeds of the offering, the anticipated timing of settlement, the anticipated use of any proceeds from the offering and the terms of
the securities being offered. Such statements are often characterized by the use of qualified words (and their derivatives) such as “may,”
“will,” “anticipate,” “could,” “should,” “would,” “believe,” “contemplate,”
“expect,” “estimate,” “continue,” “plan,” “project,” “predict,”
“potential,” “assume,” “forecast,” “target,” “budget,” “outlook,”
“trend,” “guidance,” “objective,” “goal,” “strategy,” “opportunity,”
and “intend,” as well as words of similar meaning or other statements concerning opinions or judgments of Strive and its respective
management team about future events. Forward-looking statements are based on
assumptions as of the time they are made and are
subject to risks, uncertainties and other factors that are difficult to predict with regard to timing, extent, likelihood and degree of
occurrence, which could cause actual results to differ materially from anticipated results expressed or implied by such forward-looking
statements as a result of various important factors. Other risks, uncertainties and assumptions, including, among others, the following:
· the outcome of any legal proceedings that may be instituted against Strive or its subsidiaries;
· the possibility that the anticipated benefits of the merger transaction are not realized when expected
or at all, including as a result of changes in, or problems arising from, implementation of Bitcoin treasury strategies and risks associated
with Bitcoin and other digital assets, general economic and market conditions, interest and exchange rates, monetary policy, and laws
and regulations and their enforcement;
· the diversion of management’s attention from ongoing business operations and opportunities;
· dilution caused by Strive’s issuance of additional shares of its SATS Stock, Class A Common Stock
or SATA Stock;
· potential adverse reactions of Strive’s clients and customers or changes to business or employee
relationships, including those resulting from the completion of the merger transaction; and
· other factors that may affect future results of Strive or the future trading performance of its SATS Stock,
Class A Common Stock or SATA Stock.
These factors are not necessarily all of the factors
that could cause Strive’s actual results, performance or achievements to differ materially from those expressed in or implied by
any of the forward-looking statements. Other factors, including unknown or unpredictable factors, also could harm Strive’s results.
Although Strive believes that its expectations
with respect to forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business
and operations, there can be no assurance that the actual results of Strive will not differ materially from any projected future results
expressed or implied by such forward-looking statements. Additional factors that could cause results to differ materially from those described
above can be found in Strive’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and quarterly reports on Form
10-Q, and other documents subsequently filed by Strive with the SEC.
The actual results anticipated may not be realized
or, even if substantially realized, they may not have the expected consequences to or effects on Strive or its businesses or operations.
Investors are cautioned not to rely too heavily on any such forward-looking statements. Forward-looking statements contained herein and
the press release attached hereto speak only as of the date hereof, and Strive undertakes no obligation to update or clarify these forward-looking
statements, whether as a result of new information, future events or otherwise, except to the extent required by applicable law.
No Offer or Solicitation
Neither this Current Report on Form 8-K nor the
press release attached hereto is intended to and shall not constitute an offer to sell or the solicitation of an offer to sell or the
solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation
or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
Item 9.01
Financial Statements and Exhibits.
(d) Exhibits
Exhibit No.
Description
1.1
Underwriting Agreement, dated October 15, 2026, by and between the Company, Barclays Capital Inc. and Cantor Fitzgerald & Co., as the representatives of the several underwriters with respect to the Offering.
99.1
Press Release of Strive, Inc. dated October 15, 2026.
104
Cover Page Interactive Data File (embedded within the Inline XBRL document)
SIGNATURES
Pursuant to the requirements
of the Securities Exchange Act of 1934, as amended, the Company has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
Date: October 16, 2026
Strive, Inc.
/s/ Matthew Cole
Name: Matthew Cole
Title: Chief Executive Officer
EX-1.1 — EXHIBIT 1.1
EX-1.1
Filename: dp255095_ex0101.htm · Sequence: 2
Exhibit 1.1
7,000,000 SHARES OF
15.00% SERIES A
PERPETUAL SATS PREFERRED STOCK
UNDERWRITING AGREEMENT
October 15, 2026
Barclays Capital Inc.
Cantor Fitzgerald & Co.
As Representatives of the several
Underwriters named in Schedule I attached hereto
c/o Barclays Capital Inc.
745 Seventh Avenue
New York, New York 10019
Ladies and Gentlemen:
Strive, Inc., a Nevada corporation
(the “Company”), proposes to sell an aggregate of 7,000,000 shares (the “Securities”)
of the Company’s 15.00% Series A Perpetual SATS Preferred Stock, par value $0.001 per share, with a stated amount of $100.00 per
share (“Preferred Stock”) in the respective amounts set forth in Schedule I attached to this agreement (this
“Agreement”).
1.
Representations, Warranties and Agreements of the Company. The Company represents, warrants and agrees that:
(a)
A registration statement on Form S-3 (File No. 333-290252), including a base prospectus, relating to the offer and sale of certain
securities of the Company, including the Securities, has (i) been prepared by the Company in conformity with the requirements of the Securities
Act of 1933, as amended (the “Securities Act”), and the rules and regulations of the Securities and Exchange
Commission (the “Commission”) thereunder; (ii) been filed with the Commission under the Securities Act; and
(iii) become effective under the Securities Act. Copies of such registration statement and any amendment thereto have been delivered by
the Company (or made available through the Commission’s Electronic Data Gathering Analysis Retrieval System (“EDGAR”))
to you upon request as the representatives (the “Representatives”) of the underwriters named in Schedule I (the
“Underwriters”). As used in this Agreement:
(i) “Applicable
Time” means 7:10 PM, New York City time, on October 15, 2026;
(ii) “Effective
Date” means the date and time as of which such registration statement, or the most recent post-effective amendment thereto,
if any, became, or is deemed to have become, effective by the Commission in accordance with the rules and regulations under the Securities
Act;
(iii) “Governmental
Authority” means (A) any federal, provincial, state, local, municipal, national or international government or governmental
authority, regulatory or administrative agency, governmental commission, department, board, bureau, agency or instrumentality, court,
tribunal, arbitrator or arbitral body (public or private); (B) any self-regulatory organization; or (C) any political subdivision of any
of the foregoing.
(iv) “Issuer
Free Writing Prospectus” means each “issuer free writing prospectus” (as defined in Rule 433 under the Securities
Act) relating to the Securities;
(v) “Preliminary
Prospectus” means any preliminary prospectus relating to the Securities included in such registration statement or filed
with the Commission pursuant to Rule 424(b) under the Securities Act;
(vi) “Pricing
Disclosure Package” means, as of the Applicable Time, the most recent Preliminary Prospectus, together with the information
included in Schedule II hereto, if any, and each Issuer Free Writing Prospectus filed or used by the Company at or before the Applicable
Time, other than a road show that is an Issuer Free Writing Prospectus but is not required to be filed under Rule 433 under the Securities
Act;
(vii) “Prospectus”
means the final prospectus relating to the Securities, including any prospectus supplement thereto related to the Securities, as filed
with the Commission pursuant to Rule 424(b) under the Securities Act; and
(viii) “Registration
Statement” means, collectively, the various parts of such registration statement, each as amended as of the Effective Date
for such part, including any Preliminary Prospectus or the Prospectus, all exhibits to such registration statement and including the information
deemed by virtue of Rule 430A or Rule 430B under the Securities Act to be part of such registration statement as of the Effective Date;
and
(ix) “Testing-the-Waters
Communication” means any oral or written communication with potential investors undertaken in reliance on Section 5(d) of
the Securities Act or Rule 163B under the Securities Act; and
(x) “Written
Testing-the-Waters Communication” means any Testing-the-Waters Communication that is a written communication within the
meaning of Rule 405 under the Securities Act.
Any reference to any
Preliminary Prospectus or the Prospectus shall be deemed to refer to and include any documents incorporated by reference therein pursuant
to Form S-3 under the Securities Act as of the date of such Preliminary Prospectus or the Prospectus, as the case may be. Any reference
to the “most recent Preliminary Prospectus” shall be deemed to refer to the latest Preliminary Prospectus included in the
Registration Statement or filed pursuant to Rule 424(b) under the Securities Act prior to or on the date hereof. Any reference to any
amendment or supplement to any Preliminary Prospectus or the Prospectus
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shall be deemed to
refer to and include any document filed under the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
after the date of such Preliminary Prospectus or the Prospectus, as the case may be, and before the date of such amendment or supplement
and incorporated by reference in such Preliminary Prospectus or the Prospectus, as the case may be; and any reference to any amendment
to the Registration Statement shall be deemed to include any document filed with the Commission pursuant to Section 13(a), 14 or 15(d)
of the Exchange Act after the Effective Date and before the date of such amendment that is incorporated by reference in the Registration
Statement. The Commission has not issued any order preventing or suspending the use of any Preliminary Prospectus or the Prospectus or
suspending the effectiveness of the Registration Statement, and no proceeding or examination for such purpose or pursuant to Section 8A
of the Securities Act has been instituted or threatened by the Commission. The Commission has not notified the Company of any objection
to the use of the form of the Registration Statement or any post-effective amendment thereto.
(b)
The Company and each of the Subsidiaries (as defined below) are duly organized, validly existing and in good standing under the
laws of their respective jurisdictions of organization. The Company and each of the Subsidiaries are duly licensed or qualified as a foreign
corporation for transaction of business and in good standing under the laws of each other jurisdiction in which their respective ownership
or lease of property or the conduct of their respective businesses requires such license or qualification, and have all corporate power
and authority necessary to own or hold their respective properties and to conduct their respective businesses as described in the Registration
Statement and the Prospectus, except where the failure to be so qualified or in good standing or have such power or authority would not,
individually or in the aggregate, have a material adverse effect or would reasonably be expected to have a material adverse effect on
or affecting the assets, business, operations, earnings, properties, condition (financial or otherwise), prospects, stockholders’
equity or results of operations of the Company and the Subsidiaries taken as a whole, or prevent or materially interfere with consummation
of the transactions contemplated hereby (a “Material Adverse Effect”).
(c)
The subsidiaries listed in Exhibit 21.1 to the Company’s Annual Report on Form 10-K for the most recent fiscal year (collectively,
the “Subsidiaries”) are the Company’s only significant subsidiaries (as such term is defined in Rule 102
of Regulation S-X promulgated by the Commission). Except as set forth in the Registration Statement and in the Prospectus, the Company
owns, directly or indirectly, all of the equity interests of the Subsidiaries free and clear of any lien, charge, security interest, encumbrance,
right of first refusal or other restriction, and all the equity interests of the Subsidiaries are validly issued and are fully paid, nonassessable
and free of preemptive and similar rights. No Subsidiary is currently prohibited, directly or indirectly, from paying any dividends to
the Company, from making any other distribution on such Subsidiary’s capital stock, from repaying to the Company any loans or advances
to such Subsidiary from the Company or from transferring any of such Subsidiary’s property or assets to the Company or any other
Subsidiary of the Company.
(d)
From the time of initial filing of the Registration Statement to the Commission (or, if earlier, the first date on which the Company
engaged directly or through any person authorized to act on its behalf in any Testing-the-Waters Communication) through the date hereof,
the Company has been and will be an “emerging growth company,” as defined in Section 2(a) of the Securities Act (an “Emerging
Growth Company”).
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(e)
As of the time of filing of the Registration Statement, the Company was a “smaller reporting company,” as defined in
Rule 12b-2 of the Exchange Act.
(f)
The Company (i) has not engaged in any Testing-the-Waters Communication other than Testing-the-Waters Communications with, the
consent of the Representatives, with entities that are reasonably believed to be qualified institutional buyers within the meaning of
Rule 144A under the Securities Act, or with institutions that are accredited investors within the meaning of Rule 501 under the Securities
Act and (ii) has not authorized anyone other than the Representatives to engage in Testing-the-Waters Communications. The Company reconfirms
that the Representatives have been authorized to act on its behalf in undertaking Testing-the-Waters Communications. The Company has not
distributed or approved for distribution any Written Testing-the-Waters Communications other than those listed on Schedule II hereto.
(g)
The Company was not at the time of the initial filing of the Registration Statement and at the earliest time thereafter that the
Company or another offering participant made a bona fide offer (within the meaning of Rule 164(h)(2) under the Securities Act)
of the Securities, is not on the date hereof and will not be on the Closing Date (as defined below), an “ineligible issuer”
(as defined in Rule 405 under the Securities Act).
(h)
Since the time of initial filing of the Registration Statement, the Company has been, and continues to be, a “well-known
seasoned issuer” (as defined in Rule 405) eligible to use Form S-3 for the offering of the Securities. The Company was not
an “ineligible issuer” (as defined in Rule 405) at any such time or date. The Registration Statement is an “automatic
shelf registration statement” (as defined in Rule 405) and was filed not earlier than the date that is three years prior to
the Closing Date.
(i)
The Registration Statement conformed and will conform in all material respects on the Effective Date and on the Closing Date, and
any amendment to the Registration Statement filed after the date hereof will conform in all material respects when filed, to the requirements
of the Securities Act and the rules and regulations thereunder. The most recent Preliminary Prospectus conformed, and the Prospectus will
conform, in all material respects when filed with the Commission pursuant to Rule 424(b) under the Securities Act and on the Closing Date
to the requirements of the Securities Act and the rules and regulations thereunder. The documents incorporated by reference in any Preliminary
Prospectus or the Prospectus conformed, and any further documents so incorporated will conform, when filed with the Commission, in all
material respects to the requirements of the Exchange Act or the Securities Act, as applicable, and the rules and regulations of the Commission
thereunder.
(j)
The Registration Statement did not, as of the Effective Date, contain an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements therein not misleading; provided that no representation
or warranty is made as to information contained in or omitted from the Registration Statement in reliance upon and in conformity with
written information furnished to the Company through the Representatives by or on behalf of any Underwriter specifically for inclusion
therein, which information is specified in Section 8(e) hereof.
4
(k)
The Prospectus will not, as of its date or as of the Closing Date, contain an untrue statement of a material fact or omit to state
a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading;
provided that no representation or warranty is made as to information contained in or omitted from the Prospectus in reliance upon
and in conformity with written information furnished to the Company through the Representatives by or on behalf of any Underwriter specifically
for inclusion therein, which information is specified in Section 8(e) hereof.
(l)
The documents incorporated by reference in any Preliminary Prospectus or the Prospectus did not, and any further documents filed
and incorporated by reference therein will not, when filed with the Commission, contain an untrue statement of a material fact or omit
to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.
(m)
The Pricing Disclosure Package did not, as of the Applicable Time, contain an untrue statement of a material fact or omit to state
a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading;
provided that no representation or warranty is made as to information contained in or omitted from the Pricing Disclosure Package
made in reliance upon and in conformity with written information furnished to the Company through the Representatives by or on behalf
of any Underwriter specifically for inclusion therein, which information is specified in Section 8(e) hereof.
(n)
Each Issuer Free Writing Prospectus listed in Schedule II hereto, when taken together with the Pricing Disclosure Package, did
not, as of the Applicable Time, contain an untrue statement of a material fact or omit to state a material fact necessary in order to
make the statements therein, in the light of the circumstances under which they were made, not misleading; provided that no representation
or warranty is made as to information contained in or omitted from such Issuer Free Writing Prospectus listed in Schedule II hereto in
reliance upon and in conformity with written information furnished to the Company through the Representatives by or on behalf of any Underwriter
specifically for inclusion therein, which information is specified in Section 8(e) hereof.
(o)
Each Issuer Free Writing Prospectus conformed or will conform in all material respects to the requirements of the Securities Act
and the rules and regulations thereunder on the date of first use, and the Company has complied with all prospectus delivery and any filing
requirements applicable to such Issuer Free Writing Prospectus pursuant to the Securities Act and rules and regulations thereunder. The
Company has not made any offer relating to the Securities that would constitute an Issuer Free Writing Prospectus without the prior written
consent of the Representatives, except as set forth on Schedule II hereto. The Company has retained in accordance with the Securities
Act and the rules and regulations thereunder all Issuer Free Writing Prospectuses that were not required to be filed pursuant to the Securities
Act and the rules and regulations thereunder.
5
(p)
The authorized capital stock of the Company, the Preferred Stock and the Certificate of Designation relating to the Preferred Stock
designating the “15.00% Series A Perpetual SATS Preferred Stock” and establishing the rights, powers, preferences, limitations
and entitlements thereof (the “Certificate of Designation”), in each case conform as to legal matters to the
descriptions thereof contained in the Pricing Disclosure Package and the Prospectus.
(q)
The execution and filing of the Certificate of Designation has been duly authorized by the Company, and, as of the Closing Date,
the Certificate of Designation will have been duly executed and filed with the Nevada Secretary of State.
(r)
The Securities to be issued and sold by the Company to the Underwriters hereunder have been duly authorized and, upon the effectiveness
of the Certificate of Designation and payment and delivery in accordance with this Agreement, will be validly issued, fully paid and non-assessable,
will conform to the description thereof contained in the most recent Preliminary Prospectus, will be issued in compliance with federal
and state securities laws and will be free of statutory and contractual preemptive rights, rights of first refusal and similar rights.
(s)
The Company has all requisite corporate power and authority to execute, deliver and perform its obligations under this Agreement.
This Agreement has been duly and validly authorized, executed and delivered by the Company.
(t)
The issuance and sale of the Securities by the Company, the execution, delivery and performance of this Agreement by the Company,
the Certificate of Designation and the Securities and the consummation of the transactions contemplated hereby and the application of
the proceeds from the sale of the Securities as described under “Use of Proceeds” in the most recent Preliminary Prospectus
will not (i) conflict with or result in a breach or violation of any of the terms or provisions of, impose any lien, charge or encumbrance
upon any property or assets of the Company and its Subsidiaries, or constitute a default under, any indenture, mortgage, deed of trust,
loan agreement, license, lease or other agreement or instrument to which the Company or any of its Subsidiaries is a party or by which
the Company or any of its Subsidiaries is bound or to which any of the property or assets of the Company or any of its Subsidiaries is
subject; (ii) result in any violation of the provisions of the articles of incorporation or bylaws (or similar organizational documents)
of the Company or any of its Subsidiaries; or (iii) result in any violation of any statute or any judgment, order, decree, rule or
regulation of any court or governmental agency or body having jurisdiction over the Company or any of its Subsidiaries or any of their
properties or assets, except, with respect to clauses (i) and (iii), conflicts or violations that would not reasonably be expected to
have a Material Adverse Effect.
(u)
No consent, approval, authorization or order of, or filing, registration or qualification with, any court or governmental agency
or body having jurisdiction over the Company or any of its Subsidiaries or any of their properties or assets is required for the issue
and sale of the Securities by the Company, the execution, delivery and performance by the Company of its obligations under, this Agreement,
the Certificate of Designation and the Securities and the consummation of the transactions contemplated hereby, the application of the
proceeds from the sale of the Securities as described under “Use of Proceeds” in the most recent Preliminary Prospectus, except
for the filing of the Certificate of Designation with the Nevada Secretary of State, registration of the Securities under the Securities
Act and such consents, approvals,
6
authorizations, orders, filings,
registrations or qualifications as may be required under the Exchange Act, and applicable state securities laws and/or the bylaws and
rules of the Financial Industry Regulatory Authority, Inc. (the “FINRA”) in connection with the purchase and
sale of the Securities by the Underwriters.
(v)
The consolidated financial statements of the Company included or incorporated by reference in the Registration Statement, the Prospectus
and the Issuer Free Writing Prospectuses, if any, together with the related notes and schedules, present fairly, in all material respects,
the consolidated financial position of the Company and the Subsidiaries as of the dates indicated and the consolidated results of operations,
cash flows and changes in stockholders’ equity of the Company for the periods specified and have been prepared in all material respects
in compliance with the requirements of the Securities Act and Exchange Act and in conformity with U.S. Generally Accepted Accounting Principles
(“GAAP”) applied on a consistent basis during the periods involved; the other financial and statistical data
with respect to the Company and the Subsidiaries contained or incorporated by reference in the Registration Statement, the Prospectus
and the Issuer Free Writing Prospectuses, if any, are accurately and fairly presented in all material respects and prepared on a basis
consistent, in all material respects, with the financial statements and books and records of the Company; there are no financial statements
(historical or pro forma) that are required to be included or incorporated by reference in the Registration Statement, or the Prospectus
that are not included or incorporated by reference as required; the Company and the Subsidiaries do not have any material liabilities
or obligations, direct or contingent (including any off-balance sheet obligations), not described in the Registration Statement (excluding
the exhibits thereto) and the Prospectus or in a document incorporated by reference therein; and all disclosures contained or incorporated
by reference in the Registration Statement, the Prospectus and the Issuer Free Writing Prospectuses, if any, regarding “non-GAAP
financial measures” (as such term is defined by the rules and regulations of the Commission) comply in all material respects with
Regulation G of the Exchange Act and Item 10 of Regulation S-K under the Securities Act, to the extent applicable. The interactive data
in eXtensible Business Reporting Language included or incorporated by reference in the Registration Statement and the Prospectus fairly
presents the information called for in all material respects and has been prepared in accordance with the Commission’s rules and
guidelines applicable thereto.
(w)
The pro forma financial statements included or incorporated by reference in the most recent Preliminary Prospectus include assumptions
that provide a reasonable basis for presenting the significant effects directly attributable to the transactions and events described
therein, the related pro forma adjustments give appropriate effect to those assumptions, and the pro forma adjustments reflect the proper
application of those adjustments to the historical financial statement amounts in the pro forma financial statements included or incorporated
by reference in the most recent Preliminary Prospectus. The pro forma financial statements included or incorporated by reference in the
most recent Preliminary Prospectus comply as to form in all material respects with the applicable requirements of Regulation S-X under
the Securities Act.
(x)
KPMG LLP (“KPMG”), who has certified certain financial statements of the Company and its consolidated
Subsidiaries, whose report appears in the most recent Preliminary Prospectus or is incorporated by reference therein and who have delivered
the initial letter referred to in Section 7(g) hereof, are independent public accountants as required by the Securities Act and the rules
and regulations thereunder; and BDO USA, P.C. (“BDO” and, together with KPMG, the
7
“Accountants”),
who has certified financial statements (including financial statements of acquired properties or business) that appear in the most recent
Preliminary Prospectus or are incorporated by reference therein and who have delivered the initial letter referred to in Section 7(g)
hereof, were independent public accountants as required by the Securities Act and the rules and regulations thereunder during the periods
covered by the financial statements on which they reported contained or incorporated by reference in the most recent Preliminary Prospectus.
(y)
Neither the Company nor any of its Subsidiaries is (i) in violation of its articles of incorporation or bylaws or similar
organizational documents; (ii) in default, and no event has occurred that, with notice or lapse of time or both, would constitute
such a default, in the due performance or observance of any term, covenant or condition contained in any indenture, mortgage, deed of
trust, loan or credit agreement or other agreement or instrument to which the Company or any of its Subsidiaries is a party or by which
the Company or any of its Subsidiaries is bound or to which any of the property or assets of the Company or any of its Subsidiaries are
subject; or (iii) in violation of any law or statute or any judgment, order, rule or regulation of any Governmental Authority, except,
in the case of each of clauses (ii) and (iii) above, for any such violation or default that would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect. To the Company’s knowledge, no other party under any material contract
or other agreement to which it or any of its Subsidiaries is a party is in default in any respect thereunder where such default would
have a Material Adverse Effect.
(z)
Subsequent to the respective dates as of which information is given in the Registration Statement, the Prospectus and the Issuer
Free Writing Prospectuses, if any (including any document deemed incorporated by reference therein), there has not been (i) any Material
Adverse Effect or the occurrence of any development that the Company reasonably expects will result in a Material Adverse Effect, (ii)
any transaction which is material to the Company and the Subsidiaries taken as a whole, (iii) any obligation or liability, direct or contingent
(including any off-balance sheet obligations), incurred by the Company or any Subsidiary, which is material to the Company and the Subsidiaries
taken as a whole, (iv) any material change in the capital stock or outstanding long-term indebtedness of the Company or any of its Subsidiaries
(other than (a) as a result of the sale of Securities, (b) the issuance of equity awards under the Company’s existing equity incentive
plans or (c) changes in the number of outstanding shares of the Company’s Class A common stock, par value $0.001 per share (the
“Common Stock”) due to the issuance of shares upon the exercise or conversion of securities exercisable for,
or convertible into, shares of Common Stock (including warrants) outstanding on the date hereof, or the vesting of restricted stock units
outstanding on the date hereof) or (v) any dividend or distribution of any kind declared, paid or made on the capital stock of the Company
or any Subsidiary, other than in each case above in the ordinary course of business or as otherwise disclosed in the Registration Statement
or Prospectus (including any document deemed incorporated by reference therein).
(aa)
The issued and outstanding shares of capital stock of the Company have been validly issued, are fully paid and nonassessable and,
other than as disclosed in the Registration Statement or the Prospectus, are not subject to any preemptive rights, rights of first refusal
or similar rights that have not been duly waived or satisfied. The Company has an authorized, issued and outstanding capitalization as
set forth in the Registration Statement and the Prospectus as of the dates referred to therein (other than the grant of additional options
or other equity awards under the Company’s existing stock option plans, or changes in the number of outstanding shares of
8
Common Stock of the Company
due to the issuance of shares upon the exercise or conversion of securities exercisable for, or convertible into, Common Stock outstanding
on the date hereof, or the vesting of restricted stock units outstanding on the date hereof) and such authorized capital stock conforms
in all material respects to the description thereof set forth in the Registration Statement and the Prospectus. The description of the
securities of the Company in the Registration Statement and the Prospectus is complete and accurate in all material respects. Except as
disclosed in or contemplated by the Registration Statement or the Prospectus, as of the date referred to therein, the Company does not
have outstanding any options to purchase, or any rights or warrants to subscribe for, or any securities or obligations convertible into,
or exchangeable for, or any contracts or commitments to issue or sell, any shares of capital stock or other securities.
(bb)
The Company has full legal right, power and authority to enter into this Agreement and to consummate the transactions contemplated
by each of the Registration Statement and the Prospectus. This Agreement has been duly authorized, executed and delivered by the Company
and is a legal, valid and binding agreement of the Company enforceable in accordance with its terms, except to the extent that enforceability
may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally and by
general equitable principles.
(cc)
All agreements between the Company and third parties expressly referenced in the Prospectus are legal, valid and binding obligations
of the Company enforceable in accordance with their respective terms, except to the extent that (i) enforceability may be limited
by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally and by general equitable
principles and (ii) the indemnification provisions of certain agreements may be limited by federal or state securities laws or public
policy considerations in respect thereof, except for any unenforceability that, individually or in the aggregate, would not have a Material
Adverse Effect.
(dd)
Except as set forth in the Registration Statement or the Prospectus, there are no actions, suits or proceedings by or before any
Governmental Authority pending, nor, to the Company’s knowledge, any audits or investigations by or before any Governmental Authority
to which the Company or a Subsidiary is a party or to which any property of the Company or any of its Subsidiaries is the subject that,
individually or in the aggregate, if determined adversely to the Company or such Subsidiary, would reasonably be expected to have a Material
Adverse Effect and, to the Company’s knowledge, no such actions, suits, proceedings, audits or investigations are threatened or
contemplated by any Governmental Authority or threatened by others that, individually or in the aggregate, if determined adversely to
the Company or any of the Subsidiaries, would have a Material Adverse Effect; and (i) there are no current or pending audits, actions,
suits or proceedings, or to the Company’s knowledge, investigations by or before any Governmental Authority that are required under
the Securities Act to be described in the Prospectus that are not so described; and (ii) there are no contracts or other documents
that are required under the Securities Act to be filed as exhibits to the Registration Statement that are not so filed.
(ee)
The Company and each Subsidiary possess such valid and current certificates, authorizations or permits issued by the appropriate
state, federal or foreign regulatory agencies or bodies necessary to conduct their respective businesses, and neither the Company nor
any Subsidiary has received, or has any reason to believe that it will receive, any notice of proceedings
9
relating to the revocation or
modification of, or non-compliance with, any such certificate, authorization or permit which, singly or in the aggregate, if the subject
of an unfavorable decision, ruling or finding, could reasonably be expected to result in a Material Adverse Effect.
(ff)
Except as disclosed in the Registration Statement and the Prospectus, the Company and its Subsidiaries own, possess, license or
have other rights to use all foreign and domestic patents, patent applications, trade and service marks, trade and service mark registrations,
trade names, copyrights, licenses, inventions, trade secrets, technology, Internet domain names, know-how and other intellectual property
(collectively, the “Intellectual Property”), necessary for the conduct of their respective businesses as now
conducted, except to the extent that the failure to own, possess, license or otherwise hold rights to use such Intellectual Property would
not, individually or in the aggregate, have a Material Adverse Effect. Except as disclosed in the Registration Statement and the Prospectus
(i) to the Company’s knowledge, there is no infringement by third parties of any such Intellectual Property that is owned by the
Company or any of its Subsidiaries; (ii) there is no pending or, to the Company’s knowledge, threatened action, suit, proceeding
or claim by others challenging the Company’s and its Subsidiaries’ rights in or to any such Intellectual Property that is
owned by the Company or any of its Subsidiaries; (iii) there is no pending or, to the Company’s knowledge, threatened action, suit,
proceeding or claim by others challenging the validity or scope of any such Intellectual Property that is owned by the Company or any
of its Subsidiaries; (iv) there is no pending or, to the Company’s knowledge, threatened action, suit, proceeding or claim by others
that the Company and its Subsidiaries infringe or otherwise violate any patent, trademark, copyright, trade secret or other proprietary
rights of others; (v) to the Company’s knowledge, there is no third-party U.S. patent or published U.S. patent application which
contains claims for which an Interference Proceeding (as defined in 35 U.S.C. § 135) has been commenced against any patent or patent
application described in the Prospectus as being owned by the Company; and (vi) the Company and its Subsidiaries have complied with the
terms of each agreement pursuant to which Intellectual Property has been licensed to the Company or such Subsidiary, and all such agreements
are in full force and effect, except, in the case of each of clauses (i)-(vi) above, as would not, individually or in the aggregate, result
in a Material Adverse Effect.
(gg)
At the time the Registration Statement was or will be originally declared effective, and at the time the Company’s most recent
Annual Report on Form 10-K was filed with the Commission, the Company met or will meet the then applicable requirements for the use of
Form S-3 under the Securities Act, including, but not limited to, General Instruction I.B.1 of Form S-3. The Securities have been and
remain eligible for inclusion by the Company on such Registration Statement. The Company is not a shell company (as defined in Rule 405
under the Securities Act) and has not been a shell company for at least 12 calendar months previously and if it has been a shell company
at any time previously, has filed current Form 10 information (as defined in Instruction I.B.6 of Form S-3) with the Commission at least
12 calendar months previously reflecting its status as an entity that is not a shell company.
(hh)
The information provided to the Underwriters by the Company, its counsel, and its officers and directors for purposes of the Underwriters’
compliance with applicable FINRA rules in connection with the offering of the Securities is true, complete, and correct and compliant
with FINRA’s rules.
10
(ii)
Neither the Company nor any of the Subsidiaries has defaulted on any installment on indebtedness for borrowed money or on any rental
on one or more long-term leases, which defaults, individually or in the aggregate, would reasonably be expected to have a Material Adverse
Effect. The Company has not filed a report pursuant to Section 13(a) or 15(d) of the Exchange Act since the filing of its last Annual
Report on Form 10-K, indicating that it (i) has failed to pay any dividend or sinking fund installment on preferred stock or (ii) has
defaulted on any installment on indebtedness for borrowed money or on any rental on one or more long-term leases, which defaults, individually
or in the aggregate, would reasonably be expected to have a Material Adverse Effect.
(jj)
Neither the Company, nor any of the Subsidiaries, nor, to the knowledge of the Company, any of their respective directors, officers
or controlling persons has taken, directly or indirectly, any action designed, or that has constituted or would reasonably be expected
to cause or result in, under the Exchange Act or otherwise, the stabilization or manipulation of the price of any security of the Company
to facilitate the sale or resale of the Securities.
(kk)
Neither the Company nor any of the Subsidiaries (i) is required to register as a “broker” or “dealer”
in accordance with the provisions of the Exchange Act or (ii) directly or indirectly through one or more intermediaries, controls
or is a “person associated with a member” or “associated person of a member” (within the meaning set forth in
the FINRA Manual).
(ll)
The Company has not relied upon the Underwriters or legal counsel for the Underwriters for any legal, tax or accounting advice
in connection with the offering and sale of the Securities.
(mm)
The Company and each of its Subsidiaries have filed all federal, state, local and foreign tax returns which have been required
to be filed and paid all taxes shown thereon through the date hereof, to the extent that such taxes have become due and are not being
contested in good faith, except where the failure to so file or pay would not have a Material Adverse Effect. Except as otherwise disclosed
in or contemplated by the Registration Statement or the Prospectus, no tax deficiency has been determined adversely to the Company or
any of its Subsidiaries which has had, or would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
The Company has no knowledge of any federal, state or other governmental tax deficiency, penalty or assessment which has been or might
be asserted or threatened against it which would have a Material Adverse Effect.
(nn)
The Company has made reasonable best efforts to comply and believes that it has complied with the written guidelines agreed to
by the Company and the Underwriters with respect to “fast-pay stock” (for the avoidance of doubt, the Company may take into
account written or oral representations from the financial institutions participating in this offering in determining that it has fulfilled
the written guidelines) (the “Tax Guidelines”) and does not believe that the Securities being issued in this
offering are structured in a manner that causes the Securities to be treated as “fast-pay stock” within the meaning of Section
1.7701(l)-3(b)(2) of the United States Treasury Regulations.
(oo)
Except as set forth in the Registration Statement or the Prospectus, the Company and its Subsidiaries have good and marketable
title in fee simple or other comparable valid title to
11
all items of real property owned
by them, good and valid title to all personal property described in the Registration Statement or Prospectus as being owned by them that
are material to the ordinary course of business of the Company or the Subsidiaries, in each case free and clear of all liens, encumbrances
and claims, except those matters that (i) do not materially interfere with the use made and proposed to be made of such property by the
Company and any of its Subsidiaries or (ii) would not reasonably be expected, individually or in the aggregate, to have a Material Adverse
Effect. Any real or personal property described in the Registration Statement or Prospectus as being leased by the Company and any of
its Subsidiaries is held by them under valid, existing and enforceable leases, except those that (A) do not materially interfere with
the use made or proposed to be made of such property by the Company or any of its Subsidiaries or (B) would not be reasonably expected,
individually or in the aggregate, to have a Material Adverse Effect. To the best of the Company’s knowledge, each of the properties
of the Company and its Subsidiaries complies with all applicable codes, laws and regulations (including, without limitation, building
and zoning codes, laws and regulations and laws relating to access to such properties), except if and to the extent disclosed in the Registration
Statement or Prospectus or except for such failures to comply that would not, individually or in the aggregate, reasonably be expected
to interfere in any material respect with the use made and proposed to be made of such property by the Company and its Subsidiaries or
otherwise have a Material Adverse Effect. None of the Company or its Subsidiaries has received from any Governmental Authorities any notice
of any condemnation of, or zoning change affecting, the properties of the Company and its Subsidiaries, and the Company knows of no such
condemnation or zoning change which is threatened, except for such that would not reasonably be expected to interfere in any material
respect with the use made and proposed to be made of such property by the Company and its Subsidiaries or otherwise have a Material Adverse
Effect, individually or in the aggregate.
(pp)
Except as set forth in the Registration Statement or the Prospectus, the Company and its Subsidiaries (i) are in compliance
with any and all applicable federal, state, local and foreign laws, rules, regulations, decisions and orders relating to the protection
of human health and safety, the environment or hazardous or toxic substances or wastes, pollutants or contaminants (collectively, “Environmental
Laws”); (ii) have received and are in compliance with all permits, licenses or other approvals required of them under
applicable Environmental Laws to conduct their respective businesses as described in the Registration Statement and the Prospectus; and
(iii) have not received notice of any actual or potential liability for the investigation or remediation of any disposal or release
of hazardous or toxic substances or wastes, pollutants or contaminants, except, in the case of any of clauses (i), (ii) or (iii) above,
for any such failure to comply or failure to receive required permits, licenses, other approvals or liability as would not, individually
or in the aggregate, reasonably be expected to have a Material Adverse Effect.
(qq)
The Company and each of its Subsidiaries maintain systems of internal accounting controls sufficient to provide reasonable assurance
that (i) transactions are executed in accordance with management’s general or specific authorizations; (ii) transactions
are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability;
(iii) access to assets is permitted only in accordance with management’s general or specific authorization; and (iv) the
recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect
to any differences. As of the end of the Company’s most recently completed fiscal year, the Company’s internal control over
financial reporting was effective and as of the end of the most recently completed fiscal year,
12
the Company is not aware of
any material weaknesses in its internal control over financial reporting (other than as set forth in the Prospectus). Since the date of
the latest audited financial statements of the Company included in the Prospectus, there has been no change in the Company’s internal
control over financial reporting that has materially affected, or is reasonably likely to materially affect, the Company’s internal
control over financial reporting (other than as set forth in the Prospectus). The Company has established disclosure controls and procedures
(as defined in Exchange Act Rules 13a-15 and 15d-15) for the Company and designed such disclosure controls and procedures to ensure that
material information relating to the Company and each of its Subsidiaries is made known to the certifying officers by others within those
entities, including during the period in which the Company’s Annual Report on Form 10-K or Quarterly Report on Form 10-Q, as the
case may be, is being prepared. The Company’s certifying officers have evaluated the effectiveness of the Company’s disclosure
controls and procedures as of a date within 90 days prior to the filing date of the Annual Report on Form 10-K for the fiscal year most
recently ended (such date, the “Evaluation Date”). The Company presented in its Annual Report on Form 10-K for
the fiscal year most recently ended the conclusions of the certifying officers about the effectiveness of the disclosure controls and
procedures based on their evaluations as of the Evaluation Date and the disclosure controls and procedures were effective. Since the Evaluation
Date, there have been no significant changes in the Company’s internal controls (as such term is defined in Item 307(b) of Regulation
S-K under the Securities Act) or, to the Company’s knowledge, in other factors that could significantly affect the Company’s
internal controls.
(rr)
[Reserved].
(ss)
Except as described in the most recent Preliminary Prospectus, since the date of the latest audited financial statements included
or incorporated by reference in the most recent Preliminary Prospectus, neither the Company nor any of its Subsidiaries has (i) sustained
any loss or interference with its business from fire, explosion, flood or other calamity, whether or not covered by insurance, or from
any labor dispute or court or governmental action, order or decree (whether domestic or foreign), (ii) issued or granted any securities,
(iii) incurred any material liability or obligation, direct or contingent, other than liabilities and obligations that were incurred in
the ordinary course of business, (iv) entered into any material transaction not in the ordinary course of business, or (v) declared or
paid any dividend on its capital stock, and since such date, there has not been any change in the capital stock, or long-term debt of
the Company or any of its Subsidiaries or any material adverse change, in or affecting the condition (financial or otherwise), results
of operations, stockholders’ equity, properties, management, business or prospects of the Company and its Subsidiaries taken as
a whole, in each case except as could not, in the aggregate, reasonably be expected to have a Material Adverse Effect.
(tt)
There is and has been no failure on the part of the Company or any of the Company’s directors or officers, in their capacities
as such, to comply in all material respects with any applicable provisions of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley
Act”) and the rules and regulations promulgated thereunder. Each of the principal executive officer and the principal financial
officer of the Company (or each former principal executive officer of the Company and each former principal financial officer of the Company
as applicable) has made all certifications required by Sections 302 and 906 of the Sarbanes-Oxley Act with respect to all reports, schedules,
forms, statements and other documents required to be filed by it or furnished
13
by it to the Commission. For
purposes of the preceding sentence, “principal executive officer” and “principal financial officer” shall have
the meanings given to such terms in the Sarbanes-Oxley Act.
(uu)
Neither the Company nor any of the Subsidiaries has incurred any liability for any finder’s fees, brokerage commissions or
similar payments in connection with the transactions herein contemplated, except as may otherwise exist with respect to the Underwriters
pursuant to this Agreement.
(vv)
No labor disturbance by or dispute with employees of the Company or any of its Subsidiaries exists or, to the knowledge of the
Company, is threatened which would reasonably be expected to result in a Material Adverse Effect.
(ww)
The Company is not and, after giving effect to the offering and sale of the Securities and the application of the proceeds thereof,
will not be an “investment company” as such term is defined in the Investment Company Act of 1940, as amended (the “Investment
Company Act”). The Company shall conduct its business in a manner so that it will not become required to register as an
“investment company,” as such term is defined in the Investment Company Act.
(xx)
The statements set forth in each of the most recent Preliminary Prospectus and the Prospectus under the captions “Description
of SATS Stock”, “Material U.S. Federal Income Tax Considerations”, and “Underwriting”, insofar as they purport
to summarize the provisions of the laws, regulations or legal conclusions with respect thereto and the documents referred to therein,
are accurate summaries in all material respects.
(yy)
Neither the Company nor any of its Subsidiaries, any of the Company’s directors or officers, nor, to the knowledge of the
Company, any of the Company’s controlled affiliates, any employee, agent or other person associated with or acting on behalf of
the Company or any of its Subsidiaries, has, in the course of its actions for, or on behalf of, the Company or any of its Subsidiaries:
(i) made any unlawful contribution, gift, or other unlawful expense relating to political activity; (ii) made any direct or indirect bribe,
kickback, rebate, payoff, influence payment, or otherwise unlawfully provided anything of value, to any “foreign official”
(as defined in the U.S. Foreign Corrupt Practices Act of 1977, as amended (collectively, the “FCPA”)) or domestic
government official; or (iii) violated or is in violation of any provision of the FCPA, the Bribery Act 2010 of the United Kingdom, as
amended (the “Bribery Act 2010”), or any other applicable anti-corruption or anti-bribery statute or regulation.
The Company and its Subsidiaries and, to the knowledge of the Company, the Company’s affiliates, have conducted their respective
businesses in compliance with the FCPA, Bribery Act 2010 and all other applicable anti-corruption and anti-bribery statutes or regulations,
and have instituted and maintain policies and procedures designed to ensure, and which are reasonably expected to ensure, continued compliance
therewith and with the representations and warranties contained herein. Neither the Company nor any of its Subsidiaries will use, directly
or indirectly, the proceeds of the offering in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving
of money, or anything else of value, to any person in violation of any applicable anti-corruption or anti-bribery laws.
(zz)
The operations of the Company and its Subsidiaries are and have been conducted at all times in compliance in all material respects
with applicable financial record keeping and
14
reporting requirements of the
Currency and Foreign Transactions Reporting Act of 1970, as amended, the money laundering statutes of all applicable jurisdictions to
which the Company or its Subsidiaries are subject, the applicable rules and regulations thereunder and any applicable related or similar
rules, regulations or guidelines, issued, administered or enforced by any Governmental Authority (collectively, the “Money
Laundering Laws”); and no action, suit or proceeding by or before any Governmental Authority involving the Company or any
of its Subsidiaries with respect to the Money Laundering Laws is pending or, to the knowledge of the Company, threatened.
(aaa)
Neither the Company nor any of its Subsidiaries, any of the Company’s directors or officers, nor, to the knowledge of the
Company, any agent, employee or controlled affiliate of the Company or any of its Subsidiaries is: (i) currently the subject or the target
of any sanctions administered or enforced by the Office of Foreign Assets Control of the U.S. Treasury Department, the U.S. Department
of State, the United Nations Security Council, the European Union, His Majesty’s Treasury, or other relevant sanctions authority
having jurisdiction over the Company or its Subsidiaries (collectively, “Sanctions”); or (ii) located, organized
or resident in a country or territory that is the subject or target of comprehensive territorial Sanctions (including, without limitation,
the so-called Donetsk People’s Republic, the so-called Luhansk People’s Republic, or any other Covered
Region of Ukraine identified pursuant to Executive Order 14065, the Crimea Region of Ukraine, Cuba, Iran and North Korea); and the Company
will not directly or to its knowledge indirectly use the proceeds of the offering, or lend, contribute or otherwise make available such
proceeds to any Subsidiary, joint venture partner or other person or entity, for the purpose of financing or facilitating the activities
or business of any person, or in any country or territory, that at the time of such financing or facilitation and currently is the subject
or target of Sanctions or in any other manner that will result in a violation by any person (including any person participating in the
transaction whether as an underwriter, advisor, investor or otherwise) of Sanctions. The Company and each of its Subsidiaries have not
knowingly engaged in for the past five years, are not now knowingly engaged in any dealings or transactions with any individual or entity,
or in any country or territory, that at the time of the dealing or transaction, is or was the subject or target of Sanctions.
(bbb)
There are no transactions, arrangements and other relationships between and/or among the Company, and/or, to the knowledge of the
Company, any of its affiliates and any unconsolidated entity, including, but not limited to, any structured finance, special purpose or
limited purpose entity (each, an “Off-Balance Sheet Transaction”) that could reasonably be expected to affect
materially the Company’s liquidity or the availability of or requirements for its capital resources, including those Off-Balance
Sheet Transactions described in the Commission’s Statement about Management’s Discussion and Analysis of Financial Conditions
and Results of Operations (Release Nos. 33-8056; 34-45321; FR-61), required to be described in the Prospectus which have not been described
as required.
(ccc)
To the knowledge of the Company, each material employee benefit plan, within the meaning of Section 3(3) of the Employee Retirement
Income Security Act of 1974, as amended (“ERISA”), that is maintained, administered or contributed to by the
Company or any of its Subsidiaries for employees or former employees of the Company and any of its Subsidiaries has been maintained in
material compliance with its terms and the requirements of any applicable statutes, orders, rules and regulations, including but not limited
to ERISA and the Internal Revenue
15
Code of 1986, as amended (the
“Code”); no prohibited transaction, within the meaning of Section 406 of ERISA or Section 4975 of the Code,
has occurred which would result in a material liability to the Company with respect to any such plan excluding transactions effected pursuant
to a statutory or administrative exemption; and for each such plan that is subject to the funding rules of Section 412 of the Code or
Section 302 of ERISA, no “accumulated funding deficiency” as defined in Section 412 of the Code has been incurred, whether
or not waived, and the fair market value of the assets of each such plan (excluding for these purposes accrued but unpaid contributions)
exceeds the present value of all benefits accrued under such plan determined using reasonable actuarial assumptions.
(ddd)
No forward-looking statement (within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act) (a “Forward-Looking
Statement”) contained in the Registration Statement and the Prospectus has been made or reaffirmed without a reasonable
basis or has been disclosed other than in good faith.
(eee)
Except as would not reasonably be expected to have a Material Adverse Effect, the Company and each of its Subsidiaries carry, or
are covered by, insurance in such amounts and covering such risks as the Company and each of its Subsidiaries reasonably believe are adequate
for the conduct of their properties and as is customary for companies engaged in similar businesses in similar industries.
(fff)
No stamp or other issuance or transfer taxes or duties are payable by the Underwriters in the United States or any political subdivision
or taxing authority thereof or therein in connection with the execution, delivery or performance of this Agreement by the Company or the
sale and delivery by the Company of the Securities.
(ggg)
The Company and each of its Subsidiaries are in material compliance with all applicable laws, regulations and statutes (including
all Environmental Laws and regulations) in the jurisdictions in which it carries on business; the Company has not, to the Company’s
knowledge, received a notice of non-compliance, nor knows of, nor has reasonable grounds to know of, any facts that could give rise to
a notice of non-compliance with any such laws, regulations and statutes, and is not aware of any pending change or contemplated change
to any such applicable law or regulation or statutes; in each case that would reasonably be expected to have a Material Adverse Effect
on the business of the Company or the business or legal environment under which the Company operates.
(hhh)
The statistical, demographic and market-related data included in the Registration Statement and Prospectus are based on or derived
from sources that the Company believes to be reliable and accurate or represent the Company’s good faith estimates that are made
on the basis of data derived from such sources.
(iii)
There are no securities or preferred stock of or guaranteed by the Company or any of its Subsidiaries that are rated by a “nationally
recognized statistical rating organization,” as such term is defined in Section 3(a)(62) of the Exchange Act.
(jjj)
There are (and prior to the Closing Date, will be) no debt securities or convertible securities issued or guaranteed by the Company
or any of its Subsidiaries that are rated by a “nationally recognized statistical rating organization,” as such term is defined
in Section 3(a)(62) under the Exchange Act.
16
(kkk)
Except as disclosed in the Registration Statement or Prospectus, and except as would not, individually or in the aggregate, have
a Material Adverse Effect, (i) the Company and its Subsidiaries’ information technology assets and equipment, computers, systems,
networks, hardware, software, websites, applications, and databases (collectively, “IT Systems”) are adequate
for, and operate and perform in all material respects as required in connection with the operation of the business of the Company as currently
conducted, free and clear of all material bugs, errors, defects, Trojan horses, time bombs, malware and other corruptants; (ii) the Company
and its Subsidiaries have implemented and maintained commercially reasonable physical, technical and administrative controls, policies,
procedures, and safeguards to maintain and protect their material confidential information and the integrity, continuous operation, redundancy
and security of all IT Systems and data, including all “Personal Data” (as defined below) and all sensitive, confidential
or regulated data (“Confidential Data”) used in connection with their businesses; and (iii) there have been
no breaches, violations, outages or unauthorized uses of or accesses to the same, except for those that have been remedied without material
cost or liability or the duty to notify any other person, nor are any incidents under internal review or investigation by the Company
or any of its Subsidiaries relating to the same. “Personal Data” means (A) a natural person’s name, street
address, telephone number, e-mail address, photograph, social security number or tax identification number, driver’s license number,
passport number, credit card number, bank information, or customer or account number; (B) any information which qualifies as “personally
identifying information” under the Federal Trade Commission Act, as amended; (iii) “personal data” as defined by the
European Union General Data Protection Regulation (“GDPR”) (EU 2016/679); (iv) any information which qualifies
as “protected health information” under the Health Insurance Portability and Accountability Act of 1996, as amended by the
Health Information Technology for Economic and Clinical Health Act (collectively, “HIPAA”); (v) any “personal
information” as defined by the California Consumer Privacy Act (“CCPA”); and (vi) any other piece of information
that allows the identification of such natural person.
(lll)
Except as disclosed in the Registration Statement or Prospectus, and except as would not, individually or in the aggregate, have
a Material Adverse Effect, (i) the Company and its Subsidiaries are in material compliance with all applicable state and federal data
privacy and security laws and regulations, including, without limitation, to the extent applicable, HIPAA, CCPA, and the GDPR (collectively,
the “Privacy Laws”); (ii) the Company has in place, complies with, and takes appropriate steps to ensure compliance
in all material respects with, its policies and procedures relating to data privacy and security and the collection, storage, use, processing,
disclosure, handling, and analysis of Personal Data and Confidential Data (the “Policies”); (iii) the Company
has made all disclosures to users or customers required by Privacy Laws, and none of such disclosures made or contained in any Policy
have been inaccurate or in violation of any Privacy Laws in any material respect; and (iv) neither the Company nor any Subsidiary of the
Company has received written notice of any actual or potential liability under or relating to, or actual or potential violation of, any
of the Privacy Laws.
(mmm)
Neither the Company nor any Subsidiary is in violation of or has received notice of any violation with respect to any federal or
state law relating to discrimination in the hiring, promotion or pay of employees, nor any applicable federal or state wage and hour laws,
the violation of any of which could reasonably be expected to have a Material Adverse Effect.
17
Any certificate signed by an
officer of the Company and delivered to the Representatives or counsel for the Underwriters in connection with the offering of the Securities
shall be deemed to be a representation and warranty by the Company, as applicable, as to matters covered thereby, to each Underwriter.
2.
Purchase of the Securities by the Underwriters. On the basis of the representations, warranties and covenants contained
in, and subject to the terms and conditions of, this Agreement, the Company agrees to sell 7,000,000 shares of Preferred Stock to the
several Underwriters, and each of the Underwriters, severally and not jointly, agrees to purchase the number of shares of the Preferred
Stock set forth opposite that Underwriter’s name in Schedule I hereto at the purchase price of $87.00 per share of Preferred Stock
(the “Purchase Price”). The respective purchase obligations of the Underwriters with respect to the Preferred
Stock shall be rounded among the Underwriters to avoid fractional shares, as the Representatives may determine.
The Company is not obligated
to deliver any of the Securities to be delivered on the Closing Date, except upon payment for all such Securities to be purchased on such
Closing Date as provided herein.
3.
Offering of Securities by the Underwriters. The Company is advised by the Representatives that the Underwriters propose
to make a public offering of their respective portions of the Securities as soon after the Registration Statement and this Agreement have
become effective as in the Representatives’ judgment is advisable. The Company is further advised by the Representatives that the
Securities are to be offered to the public upon the terms set forth in the Prospectus.
4.
Delivery of and Payment for the Securities. Delivery of and payment for the Securities shall be made at 10:00 A.M.,
New York City time, on October 20, 2026 or at such other date or place as shall be determined by agreement between the Representatives
and the Company. This date and time are sometimes referred to as the “Closing Date”. Time shall be of the essence,
and delivery at the time and place specified pursuant to this Agreement is a further condition of the obligation of each Underwriter hereunder.
The Preferred Stock shall be
in global form and registered in such names and in such denominations as the Representatives shall request in writing not later than one
full business day prior to the Closing Date, for the respective accounts of the several Underwriters, with any transfer taxes payable
in connection with the transfer of the Securities to the Underwriters duly paid, against payment of the Purchase Price therefor.
5.
Further Agreements of the Company and the Underwriters.
(a)
The Company agrees:
(i)
To prepare the Prospectus in a form approved by the Representatives and to file such Prospectus pursuant to Rule 424(b) under the
Securities Act not later than the Commission’s close of business on the second business day following the execution and
18
delivery of this Agreement;
to make no further amendment or any supplement to the Registration Statement or the Prospectus prior to the Closing Date except as provided
herein; to advise the Representatives, promptly after it receives notice thereof, of the time when any amendment or supplement to the
Registration Statement or the Prospectus has been filed and to furnish the Representatives with copies thereof upon reasonable written
request; to advise the Representatives, promptly after it receives notice thereof, of the issuance by the Commission of any stop order
or of any order preventing or suspending the use of the Prospectus or any Issuer Free Writing Prospectus, of the suspension of the qualification
of the Securities for offering or sale in any jurisdiction, of the initiation or threatening of any proceeding or examination for any
such purpose or pursuant to Section 8A of the Securities Act, or any notice from the Commission objecting to the use of the form
of the Registration Statement or any post-effective amendment thereto or of any request by the Commission for the amending or supplementing
of the Registration Statement, the Prospectus or any Issuer Free Writing Prospectus or for additional information; and, in the event of
the issuance of any stop order or of any order preventing or suspending the use of the Prospectus or any Issuer Free Writing Prospectus
or suspending any such qualification, to use promptly its reasonable best efforts to obtain its withdrawal of such order.
(ii)
Upon written request, to furnish promptly to each of the Representatives and to counsel for the Underwriters a signed copy of the
Registration Statement as originally filed with the Commission, and each amendment thereto filed with the Commission, including conformed
copies of all consents and exhibits filed therewith.
(iii)
To deliver, upon written request, promptly to the Representatives such number of the following documents as the Representatives
shall reasonably request: (A) conformed copies of the Registration Statement as originally filed with the Commission and each amendment
thereto (in each case excluding exhibits other than this Agreement and the computation of per share earnings), (B) each Preliminary Prospectus,
the Prospectus and any amended or supplemented Prospectus, (C) each Issuer Free Writing Prospectus, and (D) any document incorporated
by reference in any Preliminary Prospectus or the Prospectus; and, if the delivery of a prospectus is required at any time after the date
hereof in connection with the offering or sale of the Securities or any other securities relating thereto and if at such time any events
shall have occurred as a result of which the Prospectus as then amended or supplemented would include an untrue statement of a material
fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which
they were made when such Prospectus is delivered, not misleading, or, if in the opinion of counsel for the Underwriters, for any other
reason it shall be necessary to amend or supplement the Prospectus or to file under the Exchange Act any document incorporated by reference
in the Prospectus in order to comply with the Securities Act, to notify the Representatives and, upon their request, to file such document
and to prepare and furnish without charge to each Underwriter and to any dealer in securities (whose name and address the Representatives
shall furnish to the Company) as many copies as the Representatives may from time to time reasonably request of an amended or supplemented
Prospectus that will correct such statement or omission or effect such compliance.
19
(iv)
To file as promptly as practicable with the Commission any amendment or supplement to the Registration Statement or the Prospectus
that may, in the judgment of the Company or the Representatives, be required by the Securities Act or requested by the Commission in connection
with the offering and sale of the Securities.
(v)
Prior to filing with the Commission any amendment or supplement to the Registration Statement or the Prospectus, any document incorporated
by reference in the Prospectus or any amendment to any document incorporated by reference in the Prospectus, to furnish a copy thereof
to the Representatives and counsel for the Underwriters and obtain the consent of the Representatives to the filing (such consent not
to be unreasonably withheld, conditioned or delayed).
(vi)
Not to make any offer relating to the Securities that would constitute an Issuer Free Writing Prospectus without the prior written
consent of the Representatives (such consent not to be unreasonably withheld, conditioned or delayed).
(vii)
To comply with all applicable requirements of Rule 433 under the Securities Act with respect to any Issuer Free Writing Prospectus.
If at any time after the date hereof any events shall have occurred as a result of which any Issuer Free Writing Prospectus, as then amended
or supplemented, would conflict with the information in the Registration Statement, the most recent Preliminary Prospectus or the Prospectus
or would include an untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading, or, if for any other reason it shall be necessary to amend
or supplement any Issuer Free Writing Prospectus, to notify the Representatives and, upon their request, to file such document and to
prepare and furnish without charge to each Underwriter (whose name and address the Representatives shall furnish to the Company) as many
copies as the Representatives may from time to time reasonably request of an amended or supplemented Issuer Free Writing Prospectus that
will correct such conflict, statement or omission or effect such compliance.
(viii)
If requested by the Representatives, to prepare a final term sheet relating to the offering of the Securities, containing only
information that describes the final terms of the offering in a form consented to by the Representatives, and to file such final term
sheet within the period required by Rule 433(d)(5)(ii) under the Securities Act following the date the final terms have been established
for the offering of the Securities.
(ix)
As soon as practicable after the Effective Date (it being understood that the Company shall have until at least 410 days or, if
the fourth quarter following the fiscal quarter that includes the Effective Date is the last fiscal quarter of the Company’s fiscal
year, 455 days after the end of the Company’s current fiscal quarter), to make generally available to the Company’s security
holders and to deliver to the Representatives an earnings statement of the Company and its Subsidiaries (which need not be audited) complying
with Section 11(a) of the Securities Act and the rules and regulations thereunder (including, at the option of the Company, Rule 158),
which may be satisfied by filing on EDGAR.
20
(x)
Promptly from time to time to take such action as the Representatives may reasonably request to qualify the Securities for offering
and sale in such jurisdictions as the Representatives may reasonably request and to comply with such laws so as to permit the continuance
of sales and dealings therein in such jurisdictions for as long as may be necessary to complete the distribution of the Securities; provided,
that in connection therewith the Company shall not be required to (A) qualify as a foreign corporation in any jurisdiction in which it
would not otherwise be required to so qualify, (B) file a general consent to service of process in any such jurisdiction, or (C) subject
itself to taxation in any jurisdiction in which it would not otherwise be subject.
(xi)
In connection with any future offerings of Preferred Stock (for this purpose, including (i) each sale of the Preferred Stock pursuant
to any at-the-market sales program and (ii) any Preferred Stock acquired and then resold by the Company or any of its Subsidiaries) (each,
a “Future Offering”), the Company will use its reasonable best efforts (which shall include obtaining advice
from a qualified external tax advisor) to cause the Preferred Stock to be structured in a manner that is intended to cause the Preferred
Stock not to be treated as “fast-pay stock” within the meaning of Section 1.7701(l)-3(b)(2) of the United States Treasury
Regulations. For the avoidance of doubt, fulfilling the Tax Guidelines with respect to such Future Offerings (as such Tax Guidelines may
be updated by the Company and the Underwriters (and any other financial institutions that are parties to any Future Offering) from time
to time) will be deemed sufficient to meet the Company’s obligations under this provision. The Company and the Underwriters further
agree and acknowledge that the Company may take into account written or oral representations from one or more nationally recognized financial
institutions participating in such offering in determining that it has fulfilled the Tax Guidelines.
If the Company makes
any filing (including a protective filing) (the “Filing”) pursuant to Section 1.6011-4 of the United States
Treasury Regulations (or any successor or similar or related regulation, including similar state or local tax regulations) to the effect
that it has (or may have, in the case of a protective Filing) issued “fast-pay stock” with respect to the Securities or any
Preferred Stock sold by the Company in Future Offerings, the Company shall (A) announce such Filing by, at the Company’s option,
(i) a press release through a major news service, (ii) publication on the Company’s investor relations website, or (iii) filing
a Current Report on Form 8-K with the Commission (or provide similar notice to holders of the Securities), in each case, within four business
days of the Filing and (B) use reasonable best efforts to promptly provide written advance notice (and in any event no later than 10 business
days in advance of the Filing) to any potential “material advisors” (within the meaning of Section 6111 of the Code) in connection
with the Filing. The Company further agrees and covenants that if the Company receives any notice of any governmental audit, assessment,
claim, examination or other governmental inquiry relating to the tax treatment of the Securities or any Preferred Stock sold by the Company
in Future Offerings being “fast-pay stock” (a “Tax Claim”) it shall use reasonable best efforts
to promptly provide written notice to the Underwriters and any potential “material advisors” (within the meaning of Section
6111 of the Code) in connection with such Tax Claim.
The foregoing obligations
shall survive the sale and delivery of the Securities by the Company.
21
(xii)
To execute and file the Certificate of Designation with the Nevada Secretary of State, accompanied by all fees required to be paid
therewith, designating the “15.00% Series A Perpetual SATS Preferred Stock” and establishing the rights, powers, preferences,
limitations and entitlements thereof, which shall conform in all material respects to the description thereof in the Registration Statement,
Pricing Disclosure Package and the Prospectus.
(xiii)
To will use its reasonable best efforts to effect the listing of the Securities on the Nasdaq Global Market.
(xiv)
To not take any action prohibited by Regulation M under the Exchange Act in connection with the distribution of the Securities
contemplated hereby.
(xv)
For a period commencing on the date hereof and ending on the earlier of (i) the first date on which the Preferred Stock is listed
for trading on the Nasdaq Global Market and (ii) 15 days from the date of the Prospectus (the “Lock-Up Period”),
not to, and not to publicly disclose an intention to, directly or indirectly, (A) offer for sale, sell, pledge, or otherwise dispose of
(or enter into any transaction or device that is designed to, or could reasonably be expected to, result in the disposition by any person
at any time in the future of) any additional shares of Preferred Stock, (B) enter into any swap or other derivatives transaction that
transfers to another, in whole or in part, any of the economic benefits or risks of ownership of such shares of Preferred Stock, whether
any such transaction described in clause (A) or (B) above is to be settled by delivery of Preferred Stock or other securities, in cash
or otherwise, (C) file, confidentially submit or cause to be confidentially submitted or filed a registration statement, including any
amendments thereto, with respect to the registration of any shares of the Preferred Stock, or (D) publicly disclose the intention to do
any of the foregoing, in each case without the prior written consent of Barclays Capital Inc., on behalf of the Underwriters.
(xvi)
To apply the net proceeds from the sale of the Securities being sold by the Company substantially in accordance with the description
as set forth in the Prospectus under the caption “Use of Proceeds.”
(xvii)
To file with the Commission such information on Form 10-Q or Form 10-K as may be required by Rule 463 under the Securities Act.
(xviii)
If the Company elects to rely upon Rule 462(b) under the Securities Act, the Company shall file a Rule 462(b) Registration Statement
with the Commission in compliance with Rule 462(b) under the Securities Act by 10:00 P.M., New York City time, on the date of this Agreement,
and the Company shall at the time of filing pay the Commission the filing fee for the Rule 462(b) Registration Statement.
(xix)
If at any time following the distribution of any Written Testing-the-Waters Communication there occurred or occurs an event or
development as a result of which such Written Testing-the-Waters Communication included or would include an untrue statement
22
of a material fact or omitted
or would omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances existing at
that subsequent time, not misleading, the Company will promptly notify the Representatives and will promptly amend or supplement, at its
own expense, such Written Testing-the-Waters Communication to eliminate or correct such untrue statement or omission. The Company will
promptly notify the Representatives of (A) any distribution by the Company of Written Testing-the-Waters Communications and (B) any request
by the Commission for information concerning the Written Testing-the-Waters Communications.
(xx)
The Company and its controlled affiliates will not take, directly or indirectly, any action designed to or that has constituted
or that reasonably would be expected to cause or result in the stabilization or manipulation of the price of any security of the Company
in connection with the offering of the Securities.
(xxi)
The Company will do and perform all things required or necessary to be done and performed under this Agreement by it prior to the
Closing Date, and to satisfy all conditions precedent to the Underwriters’ obligations hereunder to purchase the Securities.
(xxii)
The Company will deliver to each Underwriter (or its agent), on or prior to the date of execution of this Agreement, a properly
completed and executed Certification Regarding Beneficial Owners of Legal Entity Customers or applicable exemption certificate (the “FinCEN
Certification”), together with copies of identifying documentation, of the Company and the Company undertakes to provide
such additional supporting documentation as each Underwriter may reasonably request in connection with the verification of the FinCEN
Certification.
(b)
Each Underwriter severally agrees that such Underwriter shall not include any “issuer information” (as defined in Rule
433 under the Securities Act) in any “free writing prospectus” (as defined in Rule 405 under the Securities Act) used or referred
to by such Underwriter without the prior consent of the Company (any such issuer information with respect to whose use the Company has
given its consent, “Permitted Issuer Information”); provided that (i) no such consent shall be required
with respect to any such issuer information contained in any document filed by the Company with the Commission prior to the use of such
free writing prospectus, and (ii) “issuer information”, as used in this Section 5(b), shall not be deemed to include information
prepared by or on behalf of such Underwriter on the basis of or derived from issuer information.
6.
Expenses. The Company agrees, whether or not the transactions contemplated by this Agreement are consummated or this Agreement
is terminated, to pay all expenses, costs, fees and taxes incident to and in connection with (a) the authorization, issuance, sale and
delivery of the Securities and any stamp duties or other taxes payable in that connection, and the preparation and printing of certificates
for the Securities; (b) the preparation, printing and filing under the Securities Act of the Registration Statement (including any exhibits
thereto), any Preliminary Prospectus, the Prospectus, any Issuer Free Writing Prospectus, any Written Testing-the-Waters Communication
and any amendment or supplement thereto; (c) the distribution of the Registration Statement (including any exhibits thereto), any Preliminary
Prospectus, the Prospectus, any Issuer Free Writing Prospectus, any Written Testing-the-Waters Communication, and any amendment or
23
supplement thereto, or any document
incorporated by reference therein, all as provided in this Agreement; (d) the production and distribution of this Agreement, any supplemental
agreement among Underwriters, and any other related documents in connection with the offering, purchase, sale and delivery of the Securities;
(e) any required review by FINRA of the terms of sale of the Securities and the qualification of the Securities under the securities laws
of the several jurisdictions as provided in Section 5(a)(x) and the preparation, printing and distribution of a Blue Sky Memorandum (including
related reasonable and documented fees and expenses of counsel to the Underwriters in an amount that is not greater than $35,000); (f)
the listing of the Securities on The Nasdaq Global Market and/or any other exchange; (g) the preparation, printing and distribution of
one or more versions of the Preliminary Prospectus and the Prospectus for distribution in Canada; (h) the investor presentations on any
“road show” or any Testing-the-Waters Communication, undertaken in connection with the marketing of the Securities, including,
without limitation, expenses associated with any electronic road show, travel and lodging expenses of the representatives and officers
of the Company and 50% of the cost of any aircraft chartered in connection with the road show (the remaining half of the cost to be borne
by the Underwriters); and (i) all other costs and expenses incident to the performance of the obligations of the Company under this Agreement;
provided, however, that, except as provided in this Section 6 and in Section 11, the Underwriters shall pay their own costs and
expenses, including the costs and expenses of their counsel, any transfer taxes on the Securities which they may sell and the expenses
of advertising any offering of the Securities made by the Underwriters and travel (provided that the Underwriters are responsible for
50% of the cost of any aircraft chartered in connection with the road show), lodging and other expenses of the Underwriters or any of
their employees or representatives incurred by them in connection with any “road show.”
7.
Conditions of Underwriters’ Obligations. The respective obligations of the Underwriters hereunder are subject to the
accuracy, when made and on the Closing Date, of the representations and warranties of the Company contained herein, to the performance
by the Company of its obligations hereunder in all material respects, and to each of the following additional terms and conditions:
(a)
The Prospectus shall have been timely filed with the Commission in accordance with Section 5(a)(i). The Company shall have complied
with all filing requirements applicable to any Issuer Free Writing Prospectus used or referred to after the date hereof; no stop order
suspending the effectiveness of the Registration Statement or preventing or suspending the use of the Prospectus or any Issuer Free Writing
Prospectus shall have been issued and no proceeding or examination for such purpose or pursuant to Section 8A of the Securities Act shall
have been initiated or, to the knowledge of the Company, threatened by the Commission; and any request of the Commission for inclusion
of additional information in the Registration Statement or the Prospectus or otherwise shall have been complied with to the Representatives’
reasonable satisfaction. If the Company has elected to rely upon Rule 462(b) under the Securities Act, the Rule 462(b) Registration Statement
shall have become effective by 10:00 P.M., New York City time, on the date of this Agreement.
(b)
[Reserved].
24
(c)
All corporate proceedings and other legal matters incident to the authorization, form and validity of this Agreement, the Securities,
the Registration Statement, the Prospectus and any Issuer Free Writing Prospectus, and all other legal matters relating to this Agreement
and the transactions contemplated hereby shall be reasonably satisfactory in all material respects to counsel for the Underwriters, and
the Company shall have furnished to such counsel all documents and information that they may reasonably request to enable them to pass
upon such matters.
(d)
Davis Polk & Wardwell LLP, as counsel to the Company shall have furnished to the Representatives its written opinion and negative
assurance letter, as counsel to the Company, addressed to the Underwriters and dated as of the Closing Date, in form and substance reasonably
satisfactory to the Representatives.
(e)
Brownstein Hyatt Farber Schreck, LLP, as Nevada counsel to the Company, shall have furnished to the Representatives its written
opinion, as counsel to the Company, addressed to the Underwriters and dated the Closing Date, in form and substance reasonably satisfactory
to the Representatives.
(f)
The Representatives shall have received from DLA Piper LLP (US), counsel for the Underwriters, such opinion and negative assurance
letter, dated the Closing Date, with respect to the issuance and sale of the Securities, the Registration Statement, the Pricing Disclosure
Package and the Prospectus and other related matters as the Representatives may reasonably require, and the Company shall have furnished
to such counsel such documents as they reasonably request for the purpose of enabling them to pass upon such matters.
(g)
At the time of execution of this Agreement, the Representatives shall have received from the Accountants letters, in form and substance
reasonably satisfactory to the Representatives, addressed to the Underwriters and dated the date hereof (i) confirming that they are independent
public accountants within the meaning of the Securities Act and are in compliance with the applicable requirements relating to the qualification
of accountants under Rule 2-01 of Regulation S-X of the Commission, and (ii) stating, as of the date hereof (or, with respect to
matters involving changes or developments since the respective dates as of which specified financial information is given in the most
recent Preliminary Prospectus, as of a date not more than three business days prior to the date hereof), the conclusions and findings
of such firm with respect to the financial information and other matters ordinarily covered by accountants’ “comfort letters”
to underwriters in connection with registered public offerings.
(h)
With respect to the letters of the Accountants referred to in the preceding paragraph and delivered to the Representatives concurrently
with the execution of this Agreement (the “initial letter”), the Company shall have furnished to the Representatives
a letter (the “bring-down letter”) of such accountants, addressed to the Underwriters and dated the Closing
Date (i) confirming that they are independent public accountants within the meaning of the Securities Act and are in compliance with
the applicable requirements relating to the qualification of accountants under Rule 2-01 of Regulation S-X of the Commission, (ii) stating,
as of the date of the bring-down letter (or, with respect to matters
25
involving changes or developments
since the respective dates as of which specified financial information is given in the Prospectus, as of a date not more than three business
days prior to the date of the bring-down letter), the conclusions and findings of such firm with respect to the financial information
and other matters covered by the initial letter, and (iii) confirming in all material respects the conclusions and findings set forth
in the initial letter.
(i)
The Company shall have furnished to the Representatives a certificate, dated the Closing Date, of its Chief Executive Officer and
its Chief Financial Officer as to such matters as the Representatives may reasonably request, including, without limitation, a statement:
(i)
That the representations, warranties and agreements of the Company in Section 1 (A) to the extent such representations and
warranties are subject to qualifications and exceptions contained therein relating to materiality or Material Adverse Effect, are true
and correct on and as of the Closing Date with the same force and effect as if expressly made on and as of the date hereof, except for
those representations and warranties that speak solely as of a specific date and which were true and correct as of such date, and (B)
to the extent such representations and warranties are not subject to any qualifications or exceptions, are true and correct in all material
respects on and as of the Closing Date as if made on and as of the date hereof with the same force and effect as if expressly made on
and as of the date hereof, except for those representations and warranties that speak solely as of a specific date and which were true
and correct as of such date; provided, however, that in the case of clauses (A) and (B) such representations and
warranties also shall be qualified by the disclosure included or incorporated by reference in the Registration Statement and Prospectus,
and the Company has complied with all its agreements contained herein and satisfied all the conditions on its part to be performed or
satisfied hereunder at or prior to the Closing Date;
(ii) That
no stop order suspending the effectiveness of the Registration Statement has been issued; and no proceedings or examination for that purpose
or pursuant to Section 8A of the Securities Act have been instituted or, to the knowledge of such officers, threatened; and the Commission
shall not have notified the Company of any objection to the use of the form of the Registration Statement or any post-effective amendment
thereto;
(iii) That
they have examined the Registration Statement, the Pricing Disclosure Package and the Prospectus, and, in their opinion, (A) (1) the Registration
Statement, as of the Effective Date, (2) the Pricing Disclosure Package, as of the Applicable Time, and (3) the Prospectus, as of its
date and on the Closing Date, did not and do not contain any untrue statement of a material fact and did not and do not omit to state
a material fact required to be stated therein or necessary to make the statements therein (except in the case of the Registration Statement,
in the light of the circumstances under which they were made) not misleading, and (B) since the Effective Date, no event has occurred
that should have been set forth in a supplement or amendment to the Registration Statement, the Prospectus or any Issuer Free Writing
Prospectus that has not been so set forth; and
26
(iv) To
the effect of Section 7(j).
(j)
Except as described in the most recent Preliminary Prospectus, (i) neither the Company nor any of its Subsidiaries shall have sustained,
since the date of the latest audited financial statements included or incorporated by reference in the most recent Preliminary Prospectus,
any loss or interference with its business, taken as a whole, from fire, explosion, flood or other calamity, whether or not covered by
insurance, or from any labor dispute or court or governmental action, order or decree, or (ii) since such date there shall not have been
any change in the capital stock (other than as a result of the exercise or settlement (including any “net” or “cashless”
exercises or settlements), if any, of share options or restricted share units or the award, if any, of share options, restricted share
units or restricted shares, pursuant to the Company’s equity plans described in the Registration Statement, the Pricing Disclosure
Package and the Prospectus) or long-term debt of the Company or any of its Subsidiaries or any material adverse change, in or affecting
the condition (financial or otherwise), results of operations, stockholders’ equity, properties, management, business or prospects
of the Company and its Subsidiaries taken as a whole, the effect of which, in any such case described in clause (i) or (ii), is, individually
or in the aggregate, in the judgment of the Representatives, so material and adverse as to make it impracticable or inadvisable to proceed
with the public offering or the delivery of the Securities being delivered on the Closing Date on the terms and in the manner contemplated
in the Prospectus.
(k)
Subsequent to the execution and delivery of this Agreement there shall not have occurred any of the following: (i) (A) trading
in securities generally on any securities exchange that has registered with the Commission under Section 6 of the Exchange Act (including
the New York Stock Exchange, The Nasdaq Global Select Market, The Nasdaq Global Market or The Nasdaq Capital Market), or (B) trading in
any securities of the Company on any exchange or in the over-the-counter market, shall have been suspended or materially limited or the
settlement of such trading generally shall have been materially disrupted or minimum prices shall have been established on any such exchange
or such market by the Commission, by such exchange or by any other regulatory body or governmental authority having jurisdiction, (ii)
a general moratorium on commercial banking activities shall have been declared by federal or state authorities, (iii) the United States
shall have become engaged in hostilities, there shall have been an escalation in hostilities involving the United States or there shall
have been a declaration of a national emergency or war by the United States, or (iv) there shall have occurred such a material adverse
change in general economic, political or financial conditions, including, without limitation, as a result of terrorist activities after
the date hereof (or the effect of international conditions on the financial markets in the United States shall be such) or any other calamity
or crisis, either within or outside the United States, in each case as to make it, in the reasonable judgment of the Representatives,
impracticable or inadvisable to proceed with the public offering or delivery of the Securities being delivered on the Closing Date on
the terms and in the manner contemplated in the Prospectus.
27
(l)
On or prior to the Closing Date, the Company shall have furnished to the Underwriters such further certificates and documents as
the Representatives may reasonably request.
(m)
FINRA shall not have raised any objection with respect to the fairness or reasonableness of the underwriting, or other arrangements
of the transactions, contemplated hereby.
(n)
The Company shall have filed a Notification: Listing of Additional Shares with Nasdaq to satisfy the Company’s notification
obligation under Nasdaq Listing Rule 5250(e)(2)
(o)
The Underwriters shall have received, prior to the Closing Date, satisfactory evidence of the filing of the Certificate of Designation,
as provided for in Section 5(xii).
All opinions, letters, evidence
and certificates mentioned above or elsewhere in this Agreement shall be deemed to be in compliance with the provisions hereof only if
they are in form and substance reasonably satisfactory to counsel for the Underwriters.
8.
Indemnification and Contribution.
(a)
The Company hereby agrees to indemnify and hold harmless each Underwriter, its affiliates, directors, officers and employees and
each person, if any, who controls any Underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange
Act, from and against any loss, claim, damage or liability, joint or several, or any action in respect thereof (including, but not limited
to, any loss, claim, damage, liability or action relating to purchases and sales of the Securities), to which that Underwriter, affiliate,
director, officer, employee or controlling person may become subject, under the Securities Act or otherwise, insofar as such loss, claim,
damage, liability or action arises out of, or is based upon, (i) any untrue statement or alleged untrue statement of a material fact contained
in (A) any Preliminary Prospectus, the Registration Statement, the Prospectus or in any amendment or supplement thereto, (B) any Issuer
Free Writing Prospectus or in any amendment or supplement thereto, (C) any Permitted Issuer Information used or referred to in any “free
writing prospectus” (as defined in Rule 405 under the Securities Act) used or referred to by any Underwriter, (D) any materials
or information provided to investors by, or with the approval of, the Company in connection with the marketing of the offering of the
Securities, including any “road show” (as defined in Rule 433 under the Securities Act) not constituting an Issuer Free Writing
Prospectus and any Written Testing-the-Waters Communication (“Marketing Materials”), or (E) any Blue Sky application
or other document prepared or executed by the Company (or based upon any written information furnished by the Company for use therein)
specifically for the purpose of qualifying any or all of the Securities under the securities laws of any state or other jurisdiction (any
such application, document or information being hereinafter called a “Blue Sky Application”) or (ii) the omission
or alleged omission to state in any Preliminary Prospectus, the Registration Statement, the Prospectus, any Issuer Free Writing Prospectus
or in any amendment or supplement thereto or in any Permitted Issuer Information, any Marketing Materials or any Blue Sky Application,
any material fact
28
required to be stated therein
or necessary to make the statements therein not misleading, and shall reimburse each Underwriter and each such affiliate, director, officer,
employee or controlling person promptly upon demand for any legal or other documented out-of-pocket expenses reasonably incurred by that
Underwriter, affiliate, director, officer, employee or controlling person in connection with investigating or defending or preparing to
defend against any such loss, claim, damage, liability or action as such expenses are incurred; provided, however, that
the Company shall not be liable in any such case to the extent that any such loss, claim, damage, liability or action arises out of, or
is based upon, any untrue statement or alleged untrue statement or omission or alleged omission made in any Preliminary Prospectus, the
Registration Statement, the Prospectus, any Issuer Free Writing Prospectus or in any such amendment or supplement thereto or in any Permitted
Issuer Information, any Marketing Materials or any Blue Sky Application, in reliance upon and in conformity with written information concerning
such Underwriter furnished to the Company through the Representatives by or on behalf of any Underwriter specifically for inclusion therein,
which information consists solely of the information specified in Section 8(e) hereof. The foregoing indemnity agreement is in addition
to any liability which the Company may otherwise have to any Underwriter or to any affiliate, director, officer, employee or controlling
person of that Underwriter.
(b)
Each Underwriter, severally and not jointly, shall indemnify and hold harmless the Company, its respective directors, officers
and employees, and each person, if any, who controls the Company within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act, from and against any loss, claim, damage or liability, joint or several, or any action in respect thereof, to which
the Company or any such affiliate, director, officer, employee or controlling person may become subject, under the Securities Act or otherwise,
insofar as such loss, claim, damage, liability or action arises out of, or is based upon, (i) any untrue statement or alleged untrue statement
of a material fact contained in any Preliminary Prospectus, the Registration Statement, the Prospectus, any Issuer Free Writing Prospectus
or in any amendment or supplement thereto or in any Marketing Materials or Blue Sky Application, or (ii) the omission or alleged omission
to state in any Preliminary Prospectus, the Registration Statement, the Prospectus, any Issuer Free Writing Prospectus or in any amendment
or supplement thereto or in any Marketing Materials or Blue Sky Application, any material fact required to be stated therein or necessary
to make the statements therein not misleading, but in each case only to the extent that the untrue statement or alleged untrue statement
or omission or alleged omission was made in reliance upon and in conformity with written information concerning such Underwriter furnished
to the Company through the Representatives by or on behalf of that Underwriter specifically for inclusion therein, which information is
limited to the information set forth in Section 8(e) hereof. The foregoing indemnity agreement is in addition to any liability that any
Underwriter may otherwise have to the Company or any such affiliate, director, officer, employee or controlling person.
(c)
Promptly after receipt by an indemnified party under this Section 8 of notice of any claim or the commencement of any action, the
indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under this Section 8, notify the indemnifying
party in writing of the claim or the commencement of that action; provided, however, that the failure to notify the indemnifying
party shall not relieve it from
29
any liability which it may have
under this Section 8 except to the extent it has been materially prejudiced (through the forfeiture of substantive rights and defenses)
by such failure and, provided, further, that the failure to notify the indemnifying party shall not relieve it from any
liability which it may have to an indemnified party otherwise than under this Section 8. If any such claim or action shall be brought
against an indemnified party, and it shall notify the indemnifying party thereof, the indemnifying party shall be entitled to participate
therein and, to the extent that it wishes, jointly with any other similarly notified indemnifying party, to assume the defense thereof
with counsel reasonably satisfactory to the indemnified party. After notice from the indemnifying party to the indemnified party of its
election to assume the defense of such claim or action, the indemnifying party shall not be liable to the indemnified party under this
Section 8 for any legal or other expenses subsequently incurred by the indemnified party in connection with the defense thereof other
than reasonable and documented out-of-pocket costs of investigation; provided, however, that the indemnified party shall have the
right to employ counsel to represent jointly the indemnified party and those other indemnified parties and their respective directors,
officers, employees and controlling persons who may be subject to liability arising out of any claim in respect of which indemnity may
be sought under this Section 8 if (i) the indemnified party and the indemnifying party shall have so mutually agreed; (ii) the indemnifying
party has failed within a reasonable time to retain counsel reasonably satisfactory to the indemnified party; (iii) the indemnified party
and its directors, officers, employees and controlling persons shall have reasonably concluded based on the advice of counsel that there
may be legal defenses available to them that are different from or in addition to those available to the indemnifying party; or (iv) the
named parties in any such proceeding (including any impleaded parties) include both the indemnified parties or their respective directors,
officers, employees or controlling persons, on the one hand, and the indemnifying party, on the other hand, and, based on the advice of
counsel, representation of both sets of parties by the same counsel would be inappropriate due to actual or potential differing interests
between them, and in any such event the reasonable and documented fees and expenses of such separate counsel shall be paid by the indemnifying
party. No indemnifying party shall (x) without the prior written consent of the indemnified parties (which consent shall not be unreasonably
withheld), settle or compromise or consent to the entry of any judgment with respect to any pending or threatened claim, action, suit
or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified parties are
actual or potential parties to such claim or action) unless such settlement, compromise or consent includes an unconditional release of
each indemnified party from all liability arising out of such claim, action, suit or proceeding and does not include a statement as to,
or an admission of fault, culpability or a failure to act by or on behalf of any indemnified party, or (y) be liable for any settlement
of any such action effected without its written consent (which consent shall not be unreasonably withheld), but if settled with the consent
of the indemnifying party or if there be a final judgment for the plaintiff in any such action, the indemnifying party agrees to indemnify
and hold harmless any indemnified party from and against any loss or liability by reason of such settlement or judgment. Notwithstanding
the foregoing sentence, if at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party
for fees and expenses of counsel as contemplated by Section 8(a) or (b) hereof, the indemnifying party agrees that it shall be
30
liable for any settlement of
any proceeding effected without its written consent if (i) such settlement is entered into more than 30 days after receipt by such indemnifying
party of the aforesaid request and (ii) such indemnifying party shall not have reimbursed the indemnified party in accordance with such
request or disputed in good faith the indemnified party’s entitlement to such reimbursement prior to the date of such settlement.
(d)
If the indemnification provided for in this Section 8 shall for any reason be unavailable to or insufficient to hold harmless an
indemnified party under Section 8(a) or 8(b) in respect of any loss, claim, damage or liability, or any action in respect thereof, referred
to therein, then each indemnifying party shall, in lieu of indemnifying such indemnified party, contribute to the amount paid or payable
by such indemnified party as a result of such loss, claim, damage or liability, or action in respect thereof, (i) in such proportion as
shall be appropriate to reflect the relative benefits received by the Company, on the one hand, and the Underwriters, on the other hand,
from the offering of the Securities, or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such
proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of
the Company, on the one hand, and the Underwriters, on the other hand, with respect to the statements or omissions that resulted in such
loss, claim, damage or liability, or action in respect thereof, as well as any other relevant equitable considerations. The relative benefits
received by the Company, on the one hand, and the Underwriters, on the other hand, with respect to such offering shall be deemed to be
in the same proportion as the total net proceeds from the offering of the Securities purchased under this Agreement (before deducting
expenses) received by the Company, as set forth in the table on the cover page of the Prospectus, on the one hand, and the total underwriting
discounts and commissions received by the Underwriters with respect to the Securities purchased under this Agreement, as set forth in
the table on the cover page of the Prospectus, on the other hand. The relative fault shall be determined by reference to whether the untrue
or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied
by the Company or the Underwriters, the intent of the parties and their relative knowledge, access to information and opportunity to correct
or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contributions
pursuant to this Section 8(d) were to be determined by pro rata allocation (even if the Underwriters were treated as one entity for such
purpose) or by any other method of allocation that does not take into account the equitable considerations referred to herein. The amount
paid or payable by an indemnified party as a result of the loss, claim, damage or liability, or action in respect thereof, referred to
above in this Section 8(d) shall be deemed to include, for purposes of this Section 8(d), any documented out-of-pocket legal or other
expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim. Notwithstanding
the provisions of this Section 8(d), in no event shall an Underwriter be required to contribute any amount in excess of the amount by
which the total underwriting discounts and commissions received by such Underwriter with respect to the offering of the Securities exceeds
the amount of any damages that such Underwriter has otherwise been required to pay by reason of such untrue or alleged untrue statement
or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities
Act) shall be entitled to contribution from any person who was not guilty of such fraudulent
31
misrepresentation. The Underwriters’
obligations to contribute as provided in this Section 8(d) are several in proportion to their respective underwriting obligations
and not joint.
(e)
The Underwriters severally confirm and the Company acknowledges and agrees that the statements regarding delivery of the Securities
by the Underwriters set forth on the cover page of, and the concession and reallowance figures and the paragraph relating to stabilization
by the Underwriters appearing under the caption “Underwriting” in, the most recent Preliminary Prospectus and the Prospectus
are correct and constitute the only information concerning such Underwriters furnished in writing to the Company by or on behalf of the
Underwriters specifically for inclusion in any Preliminary Prospectus, the Registration Statement, the Prospectus, any Issuer Free Writing
Prospectus or in any amendment or supplement thereto or in any Marketing Materials.
9.
Defaulting Underwriters.
(a)
If, on the Closing Date, any Underwriter defaults in its obligations to purchase the Securities that it has agreed to purchase
under this Agreement, the remaining non-defaulting Underwriters may in their discretion arrange for the purchase of such Securities by
the non-defaulting Underwriters or other persons satisfactory to the Company on the terms contained in this Agreement. If, within 36 hours
after any such default by any Underwriter, the non-defaulting Underwriters do not arrange for the purchase of such Securities, then the
Company shall be entitled to a further period of 36 hours within which to procure other persons satisfactory to the non-defaulting Underwriters
to purchase such Securities on such terms. In the event that within the respective prescribed periods, the non-defaulting Underwriters
notify the Company that they have so arranged for the purchase of such Securities, or the Company notifies the non-defaulting Underwriters
that it has so arranged for the purchase of such Securities, either the non-defaulting Underwriters or the Company may postpone such Closing
Date for up to seven full business days in order to effect any changes that in the opinion of counsel for the Company or counsel for the
Underwriters may be necessary in the Registration Statement, the Prospectus or in any other document or arrangement, and the Company agrees
to promptly prepare any amendment or supplement to the Registration Statement, the Prospectus or in any such other document or arrangement
that effects any such changes. As used in this Agreement, the term “Underwriter,” unless the context requires otherwise, includes
any party not listed in Schedule I hereto that, pursuant to this Section 9, purchases Securities that a defaulting Underwriter agreed
but failed to purchase.
(b)
If, after giving effect to any arrangements for the purchase of the Securities of a defaulting Underwriter or Underwriters by the
non-defaulting Underwriters and the Company as provided in paragraph (a) above, the total number of Securities that remain unpurchased
does not exceed one-eleventh of the total number of Securities, then the Company shall have the right to require each non-defaulting Underwriter
to purchase the total number of Securities that such Underwriter agreed to purchase hereunder plus such Underwriter's pro rata
share (based on the total number of Securities that such Underwriter agreed to purchase hereunder) of the Securities of such defaulting
Underwriter or Underwriters for which such arrangements have not been made; provided that the non-
32
defaulting Underwriters shall
not be obligated to purchase more than 110% of the total Securities that it agreed to purchase on the Closing Date pursuant to the terms
of Section 2.
(c)
If, after giving effect to any arrangements for the purchase of the Securities of a defaulting Underwriter or Underwriters by the
non-defaulting Underwriters and the Company as provided in paragraph (a) above, the total number of Securities that remain unpurchased
exceeds one-eleventh of the total number of all the Securities, or if the Company shall not exercise the right described in paragraph
(b) above, then this Agreement shall terminate without liability on the part of the non-defaulting Underwriters. Any termination of this
Agreement pursuant to this Section 9 shall be without liability on the part of the Company, except that the Company will continue
to be liable for the payment of expenses as set forth in Sections 6 and 11 and except that the provisions of Section 8 shall not
terminate and shall remain in effect.
(d)
Nothing contained herein shall relieve a defaulting Underwriter of any liability it may have to the Company or any non-defaulting
Underwriter for damages caused by its default.
10.
Termination. The obligations of the Underwriters hereunder may be terminated by the Representatives by notice given to and
received by the Company prior to delivery of and payment for the Securities if, prior to that time, any of the events described in Sections
7(j) shall have occurred or if the Underwriters shall decline to purchase the Securities for any reason permitted under this Agreement.
11.
Reimbursement of Underwriters’ Expenses. If (a) the Company shall fail to tender the Securities for delivery to the
Underwriters for any reason, or (b) the Underwriters shall decline to purchase the Securities for any reason permitted under this Agreement,
the Company will reimburse the Underwriters for all reasonable and documented out-of-pocket expenses (including the reasonable and documented
fees and disbursements of counsel for the Underwriters) incurred by the Underwriters in connection with this Agreement and the proposed
purchase of the Securities, and upon demand the Company shall pay the full amount thereof to the Representatives. If this Agreement is
terminated pursuant to Section 9 by reason of the default of one or more Underwriters, the Company shall not be obligated to reimburse
any defaulting Underwriter on account of those expenses.
12.
Research Analyst Independence. The Company acknowledges that the Underwriters’ research analysts and research departments
are required to be independent from their respective investment banking divisions and are subject to certain regulations and internal
policies, and that such Underwriters’ research analysts may hold views and make statements or investment recommendations and/or
publish research reports with respect to the Company and/or the offering that differ from the views of their respective investment banking
divisions. The Company hereby waives and releases, to the fullest extent permitted by law, any claims that the Company may have against
the Underwriters with respect to any conflict of interest that may arise from the fact that the views expressed by their independent research
analysts and research departments may be different from or inconsistent with the views or advice communicated to the Company by such Underwriters’
investment banking divisions. The Company acknowledges that each of the Underwriters is a full service securities firm and as such from
time to time, subject to
33
applicable securities laws,
may effect transactions for its own account or the account of its customers and hold long or short positions in debt or equity securities
of the companies that may be the subject of the transactions contemplated by this Agreement.
13.
No Fiduciary Duty. The Company acknowledges and agrees that in connection with this offering, sale of the Securities or
any other services the Underwriters may be deemed to be providing hereunder, notwithstanding any preexisting relationship, advisory or
otherwise, between the parties or any oral representations or assurances previously or subsequently made by the Underwriters: (a) no fiduciary
or agency relationship between the Company and any other person, on the one hand, and the Underwriters, on the other hand, exists; (b)
the Underwriters are not acting as advisors, expert or otherwise and are not providing a recommendation or investment advice, to the Company,
including, without limitation, with respect to the determination of the public offering price of the Securities, and such relationship
between the Company, on the one hand, and the Underwriters, on the other hand, is entirely and solely commercial, based on arms-length
negotiations and, as such, not intended for use by any individual for personal, family or household purposes; (c) any duties and obligations
that the Underwriters may have to the Company shall be limited to those duties and obligations specifically stated herein; (d) the Underwriters
and their respective affiliates may have interests that differ from those of the Company; and (e) does not constitute a solicitation of
any action by the Underwriters. The Company hereby (x) waives any claims that the Company may have against the Underwriters with respect
to any breach of fiduciary duty in connection with this offering and (y) agree that none of the activities of the Underwriters in connection
with the transactions contemplated herein constitutes a recommendation, investment advice or solicitation of any action by the Underwriters
with respect to any entity or natural person. The Company has consulted its own legal, accounting, financial, regulatory and tax advisors
to the extent deemed appropriate.
14.
Notices, etc. All statements, requests, notices and agreements hereunder shall be in writing, and:
(a)
if to the Underwriters, shall be delivered or sent by e-mail, mail or facsimile transmission to Barclays Capital Inc., 745 Seventh
Avenue, New York, New York 10019, Attention: Syndicate Registration (Fax: (646) 834-8133), with a copy, in the case of any notice pursuant
to Section 8(c), to the Director of Litigation, Office of the General Counsel, Barclays Capital Inc., 745 Seventh Avenue, New York, New
York 10019; and
(b)
if to the Company, shall be delivered or sent by e-mail, mail or facsimile transmission to the address of the Company set forth
in the Registration Statement, Attention: Logan Beirne (E-mail: Logan.Beirne@strive.com).
Any such statements, requests, notices or agreements
shall take effect at the time of receipt thereof. The Company shall be entitled to act and rely upon any request, consent, notice or agreement
given or made on behalf of the Underwriters by Barclays Capital Inc. on behalf of the Representatives.
15.
Persons Entitled to Benefit of Agreement. This Agreement shall inure to the benefit of and be binding upon the Underwriters,
the Company, and their respective successors. This Agreement and the terms and provisions hereof are for the sole benefit of only those
persons, except that (a) the representations, warranties, indemnities and agreements of the Company
34
contained in this Agreement
shall also be deemed to be for the benefit of the affiliates, directors, officers and employees of the Underwriters and each person or
persons, if any, who control any Underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange
Act, and (b) the indemnity agreement of the Underwriters contained in Section 8(b) of this Agreement shall be deemed to be for
the benefit of the affiliates, directors of the Company, the officers of the Company who have signed the Registration Statement and any
person controlling the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act. Nothing
in this Agreement is intended or shall be construed to give any person, other than the persons referred to in this Section 15, any legal
or equitable right, remedy or claim under or in respect of this Agreement or any provision contained herein.
16.
Survival. The respective indemnities, rights of contributions, representations, warranties and agreements of the Company
and the Underwriters contained in this Agreement or made by or on behalf of them, respectively, pursuant to this Agreement, shall survive
the delivery of and payment for the Securities and shall remain in full force and effect, regardless of any investigation made by or on
behalf of any of them or any person controlling any of them.
17.
Definition of the Terms “Business Day,” “Affiliate” and “Subsidiary”. For purposes of
this Agreement, (a) “business day” means each Monday, Tuesday, Wednesday, Thursday or Friday that is not a day
on which banking institutions in New York are generally authorized or obligated by law or executive order to close, and (b) “affiliate”
and “subsidiary” have the meanings set forth in Rule 405 under the Securities Act.
18.
Governing Law. This Agreement and any transaction contemplated by this Agreement shall be governed by and construed in
accordance with the laws of the State of New York without regard to conflict of laws principles that would result in the application of
any other law than the laws of the State of New York (other than Section 5-1401 of the General Obligations Law).
19.
Waiver of Jury Trial. The Company and the Underwriters hereby irrevocably waive, to the fullest extent permitted by applicable
law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated
hereby.
20.
Counterparts. This Agreement may be executed in one or more counterparts and, if executed in more than one counterpart,
the executed counterparts shall each be deemed to be an original but all such counterparts shall together constitute one and the same
instrument. Delivery of an executed Agreement by one party to any other party may be made by facsimile, electronic mail (including any
electronic signature complying with the New York Electronic Signatures and Records Act (N.Y. State Tech. §§ 301-309), as amended
from time to time, or other applicable law) or other transmission method, and the parties hereto agree that any counterpart so delivered
shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.
21.
Headings. The headings herein are inserted for convenience of reference only and are not intended to be part of, or to affect
the meaning or interpretation of, this Agreement.
35
If the foregoing correctly
sets forth the agreement between the Company and the Underwriters, please indicate your acceptance in the space provided for that purpose
below.
Very truly yours,
Strive, Inc.
By:
/s/ Matthew Cole
Name:
Matthew Cole
Title:
Chief Executive Officer
Accepted:
Barclays Capital Inc.
Cantor Fitzgerald & Co.
For themselves and as Representatives
of the several Underwriters named
in Schedule I hereto
BARCLAYS CAPITAL INC.
By:
/s/ Matt Gannon
Name: Matt Gannon
Title: Managing Director
CANTOR
FITZGERALD & CO.
By:
/s/ Sage Kelly
Name: Sage Kelly
Title: Co-Chief Executive
Officer & Global Head of Investment Banking
SCHEDULE I
Underwriters
Number of Securities To Be Purchased
Barclays Capital Inc.
3,535,000
Cantor Fitzgerald & Co.
2,870,000
Clear Street LLC
245,000
B. Riley Securities, Inc.
87,500
H.C. Wainwright & Co., LLC
87,500
Maxim Group LLC
87,500
StoneX Financial, Inc.
87,500
Total
7,000,000
SCHEDULE II
Pricing Disclosure Package
1. Preliminary
prospectus supplement dated October 13, 2026 relating to the Securities.
2. Pricing Term
Sheet dated October 15, 2026 relating to the Securities (attached as Exhibit A hereto).
3. Investor Presentation dated October 13, 2026 relating
to the Securities, filed with the Commission pursuant to Rule 433 on October 13, 2026 (the “Investor Presentation”).
Issuer Free Writing Prospectuses
1. Investor Presentation.
2. Pricing Term
Sheet dated October 15, 2026 relating to the Securities, filed with the Commission pursuant to Rule 433 on October 15, 2026.
Written Testing-The-Waters Communications
1. None.
Exhibit A
Pricing Term Sheet
[Attached.]
Issuer Free Writing Prospectus
Filed Pursuant to Rule 433
Registration File No. 333-290252
Relating to the Preliminary Prospectus Supplement
Dated October 13, 2026
(To Prospectus Dated September 15, 2025)
PRICING TERM SHEET
October 15, 2026
STRIVE, INC.
Offering of
7,000,000 Shares of
15.00% Series A Perpetual SATS Preferred Stock
The information in this pricing term sheet
supplements Strive, Inc.’s preliminary prospectus supplement, dated October 13, 2026 (the “Preliminary Prospectus Supplement”),
and supersedes the information in the Preliminary Prospectus Supplement to the extent inconsistent with the information in the Preliminary
Prospectus Supplement. In all other respects, this pricing term sheet is qualified in its entirety by reference to the Preliminary Prospectus
Supplement, including all documents incorporated by reference therein. Terms used, but not defined, in this pricing term sheet have the
respective meanings set forth in the Preliminary Prospectus Supplement. The size of the offering was increased from the previously announced
offering of 5,000,000 shares of 15.00% Series A Perpetual SATS Preferred Stock as described below. The final prospectus supplement relating
to the offering of the 15.00% Series A Perpetual SATS Preferred Stock will reflect conforming changes relating to such increase in the
size of the offering.
As used in this pricing term sheet, “we,”
“our” and “us” refer to Strive, Inc. and not to its subsidiaries.
Issuer
Strive, Inc. (the “Company”)
Securities Offered
15.00% Series A Perpetual SATS Preferred Stock, $0.001 par value per share, of the Company (the “SATS Stock”).
Amount Offered
7,000,000 shares of SATS Stock.
Public Offering Price
$90.00 per share of SATS Stock.
Trade Date
October 16, 2026.
Settlement Date
October 20, 2026, which will be the second business day after the Trade Date (this settlement cycle being referred to as “T+2”). Under Rule 15c6-1 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), trades in the secondary market generally must settle in one business day, unless the parties to the trade expressly agree otherwise. Accordingly, purchasers who wish to trade SATS Stock before the business day before the Settlement Date must, because the SATS Stock initially will settle T+2, specify an alternate settlement cycle at the time of such trade to prevent a failed settlement. Those purchasers should consult their advisors.
Stated Amount
$100 per share of SATS Stock.
Ranking
The SATS Stock will rank as follows:
·
senior to (i) Dividend Junior Stock (as defined in the Preliminary Prospectus Supplement, and which includes the Company’s
Class A common stock, par value $0.001 per share (the “Class A Common Stock”) and the Company’s Class B common stock,
par value $0.001 per share (the “Class B Common Stock” and, together with the Class A Common Stock, the “Common Stock”))
with respect to the payment of dividends; and (ii) Liquidation Junior Stock (as defined in the Preliminary Prospectus Supplement, and
which includes Class A Common Stock and the Class B Common Stock) with respect to the distribution of assets upon the Company’s
liquidation, dissolution or winding up;
·
equally with (i) Dividend Parity Stock (as defined in the Preliminary Prospectus Supplement) with respect to the payment of dividends;
and (ii) Liquidation Parity Stock (as defined in the Preliminary Prospectus Supplement) with respect to the distribution of assets upon
the Company’s liquidation, dissolution or winding up;
·
junior to the Company’s (i) Dividend Senior Stock and Liquidation Senior Stock (as those terms are defined in the Preliminary
Prospectus Supplement) and (ii) any existing and future indebtedness; and
·
structurally junior to all existing and future indebtedness and other liabilities, including trade payables, and (to the extent
the Company is not a holder thereof) capital stock of the Company’s subsidiaries.
The terms of the SATS Stock will not restrict
the Company from issuing Dividend Senior Stock, Dividend Parity Stock, Liquidation Senior Stock or Liquidation Parity Stock.
Liquidation Preference
Initially, $100 per share of SATS Stock. The Liquidation Preference will be subject to adjustment in the manner described in the Preliminary Prospectus Supplement. However, the Liquidation Preference will not be adjusted to an amount that is less than $100 per share of SATS Stock.
Regular Dividends
The SATS Stock will accumulate cumulative dividends
(“regular dividends”) at a rate per annum equal to 15.00% on the Stated Amount thereof, regardless of whether or not declared
or funds are legally available for payment. Subject to the other provisions described in the Preliminary Prospectus Supplement, regular
dividends will be payable when, as and if declared by our board of directors or any duly authorized committee thereof, out of funds legally
available for their payment, in arrears for each regular dividend period on each regular dividend payment date (as defined in the Preliminary
Prospectus Supplement) to the SATS preferred stockholders of record as of the close of business on the regular record date immediately
preceding the applicable regular dividend payment date. If and when declared, any such payments shall be calculated for each calendar
month and subdivided and paid on each regular dividend payment date in equally divided installments based on the number of regular dividend
payment dates in each such calendar month as set forth in the
Preliminary Prospectus Supplement. No dividend,
interest or other amount will accumulate or accrue on any unpaid regular dividends, regardless of whether regular dividends are declared
for any future regular dividend period.
We currently anticipate we will declare the first
dividend payment to occur on November 9, 2026. If declared in full, the first scheduled regular dividend on the SATS Stock payable on
November 9, 2026 will include all accrued and unpaid dividends from and after the closing date, and will be $0.8710 per share, assuming
that the closing of this offering occurs on October 20, 2026.
Regular Dividend Payment Dates
Each business day (as such term is defined in the Preliminary Prospectus Supplement), beginning on November 9, 2026, subject to declaration by our board of directors or any duly authorized committee thereof. .
Regular Record Dates
With respect to any regular dividend payment date, the immediately preceding business day on which such regular dividend payment date occurs.
Regular Dividend Period
Each period from, and including, the calendar day after a regular dividend payment date (or, in the case of the first regular dividend period, from, and including, the calendar day after the initial issue date) to, and including, the next regular dividend payment date.
Directed Share Program
At our request, the underwriters have reserved up to 350,000 shares of the SATS Stock, or 5% of the shares offered, for sale at the public offering price through a directed share program to certain of our employees, officers and directors based in the United States and their friends and family members, and certain other individuals identified by management. The number of shares of the SATS Stock available for sale to the general public will be reduced to the extent that such persons purchase such reserved shares. Any reserved shares not so purchased will be offered by the underwriters to the general public on the same basis as the other shares offered in this offering. Fidelity Brokerage Services LLC and Fidelity Capital Markets, a division of National Financial Services LLC, a selling group member in this offering, will administer our directed share program. See “Underwriting—Directed Share Program” in the Preliminary Prospectus Supplement.
Dividend Reserve
At the closing of this offering, we intend to
increase our existing dividend reserve in an amount equal to the first 18 months of dividend payments calculated as of the date of this
offering (the “Dividend Reserve”) by depositing an equivalent of $22.50 per share of SATS Stock into an account funded by
us with a combination of existing cash on hand and securities held by us (based on the value of such securities at the closing of this
offering). Subject to compliance with Nevada law and any other applicable requirements, we may make dividend distributions from the Dividend
Reserve or from any other account maintained by us to the holders of the then-outstanding SATS Stock following the closing of this offering.
We intend to invest the proceeds of the Dividend
Reserve in various capital preservation instruments, including short-term investment grade, interest-bearing securities, and money-market
funds. Any investment income earned from the Dividend Reserve will be remitted to us to use for working capital or general corporate purposes,
including the acquisition of additional bitcoin.
No Preemptive or Conversion Rights
The SATS Stock will not be convertible into or exchangeable for any other securities or property and will not be entitled to any preemptive or similar rights.
Limitation on Junior Payments
The Company will not declare or pay dividends on, or repurchase, Junior Stock while any accumulated SATS Stock dividends remain unpaid, subject to customary exceptions.
Redemption
The SATS Stock is not redeemable at the Company’s option, except that the Company may redeem all, and not less than all, of the SATS Stock (i) if a Tax Event (as defined in the Preliminary Prospectus Supplement) occurs or (ii) if fewer than 25% of the total number of shares of SATS Stock issued in this offering and in any future offering, taken together, remain outstanding. The redemption price shall be equal to the Liquidation Preference as of the business day before the date the related redemption notice is sent, plus any accumulated and unpaid regular dividends to, and including, the redemption date.
Fundamental Change Repurchase Right
Upon the occurrence of a Fundamental Change (as defined in the Preliminary Prospectus Supplement), each holder of SATS Stock will have the right to require the Company to repurchase some or all of its SATS Stock at a cash repurchase price equal to the Stated Amount thereof, plus any accumulated and unpaid regular dividends to, and including, the Fundamental Change Repurchase Date (as defined in the Preliminary Prospectus Supplement).
Lockup
The Company shall not, until the earlier of (i) the first date on which SATS Stock is listed for trading on The Nasdaq Global Market or (ii) 15 days following the Trade Date, offer, issue or sell any additional shares of SATS Stock, subject to certain exceptions, including the issuance of SATS Stock in this offering.
Voting Rights
The SATS Stock will not have Common Stock voting rights and will have only the limited voting rights described in the Preliminary Prospectus Supplement.
Listing
No public market currently exists for the SATS Stock. We have applied to list the SATS Stock on The Nasdaq Global Market under the symbol “SATS.” If the listing is approved, we expect trading in the SATS Stock to commence within 30 days after the Settlement Date.
Use of Proceeds
We estimate that the gross proceeds to us from this offering will be approximately $630 million, before deducting the underwriting discounts and commissions and our estimated offering expenses. We intend to use the net proceeds for general corporate purposes, including, among other things, the acquisition of bitcoin and bitcoin-related products and for working capital, the purchase of income generating assets to grow our business, other capital expenditures, and/or repurchases of shares of our Class A Common Stock or SATA Stock, $0.001 par value. We may also use such proceeds to fund acquisitions of businesses, assets or technologies that complement our current business.
Joint Book-Running Managers
Barclays Capital Inc.
Cantor Fitzgerald & Co.
Lead Manager
Clear Street LLC
Co-Managers
B. Riley Securities, Inc.
H.C. Wainwright & Co., LLC
Maxim Group LLC
StoneX Financial Inc.
CUSIP / ISIN Numbers for SATS Stock
862945 409 / US8629454096
* * *
The Preliminary Prospectus Supplement incorporates
by reference the Current Report on Form 8-K filed with the SEC on November 14, 2025 (Accession No. 0001140361-25-042336). Any other Current
Report on Form 8-K filed with the SEC on November 14, 2025 is not deemed filed and is not incorporated by reference in the Preliminary
Prospectus Supplement.
* * *
We have filed a registration
statement (including a prospectus) and the Preliminary Prospectus Supplement with the SEC for the offering to which this communication
relates. Before you invest, you should read the Preliminary Prospectus Supplement and the prospectus in that registration statement and
other documents we have filed with the SEC for more complete information about us and this offering. You may get these documents free
by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, we, any underwriter or any dealer participating in the offering
will arrange to send you the Preliminary Prospectus Supplement (or, when available, the final prospectus supplement) and the accompanying
prospectus upon request to: Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717,
by email at barclaysprospectus@broadridge.com or telephone at 1-888-603-5847; or Cantor Fitzgerald & Co., Attention: Capital Markets,
110 East 59th Street, 6th Floor, New York, NY 10022, or by email at prospectus@cantor.com.
The information in this pricing
term sheet is not a complete description of the SATS Stock or the offering. You should rely only on the information contained or incorporated
by reference in the Preliminary Prospectus Supplement and the accompanying prospectus, as supplemented by this pricing term sheet, in
making an investment decision with respect to the SATS Stock.
ANY DISCLAIMERS OR OTHER
NOTICES THAT MAY APPEAR BELOW ARE NOT APPLICABLE TO THIS COMMUNICATION AND SHOULD BE DISREGARDED. SUCH DISCLAIMERS OR OTHER NOTICES WERE
AUTOMATICALLY GENERATED AS A RESULT OF THIS COMMUNICATION BEING SENT VIA BLOOMBERG OR ANOTHER EMAIL SYSTEM.
EX-99.1 — EXHIBIT 99.1
EX-99.1
Filename: dp255095_ex9901.htm · Sequence: 3
Exhibit 99.1
Strive Announces Pricing of Upsized Initial
Public Offering of SATS Stock
DALLAS, TX—(GLOBE NEWSWIRE)—October
15, 2026—Strive, Inc. (Nasdaq: ASST) (“Strive” or the “Company”) today announced the pricing of its initial
public offering (the “offering”) on October 15, 2026 of 7,000,000 shares of Strive’s 15.00% Series A Perpetual SATS
Preferred Stock (the “SATS Stock”), an upsize of 2,000,000 shares over the amount previously announced, at a public offering
price of $90 per share. The issuance and sale of the SATS Stock is scheduled to settle on October 20, 2026, subject to customary closing
conditions.
Strive estimates that the gross proceeds to it
from the offering will be approximately $630 million, before deducting the underwriting discounts and commissions and Strive’s estimated
offering expenses. Strive intends to use the net proceeds from the offering for general corporate purposes, including, among other things,
the acquisition of bitcoin and bitcoin-related products and for working capital, the purchase of income generating assets to grow the
Company’s business, other capital expenditures, and/or repurchases of shares of the Company’s Class A common stock, par value
$0.001 per share (the “Class A Common Stock”) or its Variable Rate Series A Perpetual Preferred Stock, par value $0.001 per
share (the “SATA Stock”). Strive may also use such proceeds to fund acquisitions of businesses, assets or technologies that
complement its current business.
The SATS Stock will accumulate cumulative dividends
at a rate per annum equal to 15.00% on the stated amount of $100 per share (the “stated amount”) thereof. Subject to the provisions
in the governing documentation for the SATS Stock, regular dividends on the SATS Stock will be payable when, as and if declared by Strive’s
board of directors or any duly authorized committee thereof, out of funds legally available for their payment, in arrears for each regular
dividend period on each payment date to stockholders of record as of the close of business on the regular record date immediately preceding
the applicable regular dividend payment date. Regular dividend dates will fall on each business day, as defined in the governing documentation
for the SATS Stock, beginning on November 9, 2026. If declared in full, the first scheduled regular dividend on the SATS Stock payable
will include all accrued and unpaid dividends from and after the closing date.
At the closing of the offering, Strive intends
to increase our existing dividend reserve in an amount equal to the first 18 months of dividend payments calculated as of the date of
the offering by depositing an equivalent of $22.50 per share of SATS Stock into an account funded by us with a combination of existing
cash on hand and securities held by us (based on the value of such securities at the closing of this offering).
Strive will have the right, at its election, to
redeem all, but not less than all, of the SATS Stock, at any time, for cash if the total number of shares of all SATS Stock then outstanding
is less than 25% of the total number of shares of SATS Stock originally issued in this offering and in any future offering, taken together.
In addition, Strive will have the right to redeem all, but not less than all, of the SATS Stock if certain tax events occur. The redemption
price for any SATS Stock to be redeemed will be a cash amount equal to the liquidation preference of the SATS Stock to be redeemed as
of the business day before the date on which Strive sends the related redemption notice, plus accumulated and unpaid regular dividends,
if any, thereon to, and including, the redemption date.
If an event that constitutes a “fundamental
change” under the certificate of designation governing the SATS Stock occurs, then holders of the SATS Stock will have the right
to require Strive to repurchase some or all of their shares of SATS Stock at a cash repurchase price equal to the stated amount of the
SATS Stock to be repurchased, plus accumulated and unpaid regular dividends, if any, to, and including, the fundamental change repurchase
date.
The liquidation preference of the SATS Stock will
initially be $100 per share; provided, however, that, effective immediately after the close of business on each business day after the
initial issue date (and, if applicable, during the course of a business day on which any sale transaction to be settled by the issuance
of SATS Stock is executed, from the exact time of the first such sale transaction during such business day until the close of business
of such business day), the liquidation preference per share of SATS Stock will be adjusted to be the greatest of (i) the stated amount
per share of SATS Stock; (ii) in the case of any business day with respect to which Strive has, on such business day or any business day
during the ten trading day period preceding such business day, executed any sale transaction to be settled by the issuance of SATS Stock,
an amount equal to the last reported sale price per share of SATS Stock on the trading day immediately before such business day; and (iii)
the arithmetic average of the last reported sale prices per share of SATS Stock for each trading day of the ten consecutive trading days
(or, if applicable, the lesser number of trading days as have elapsed during the period from, and including, the initial issue date to,
but excluding, such business day) immediately preceding such business day.
Barclays and Cantor are acting as joint book-running
managers for the offering. Clear Street is acting as lead manager for the offering. B. Riley Securities, H.C. Wainwright & Co., Maxim
Group LLC, and StoneX are acting as co-managers for the offering.
The offering is being made pursuant to an effective
shelf registration statement on file with the Securities and Exchange Commission (the “SEC”). The offering will be made only
by means of a prospectus supplement and an accompanying prospectus. An electronic copy of the preliminary prospectus supplement (and when
available, the final prospectus supplement), together with the accompanying prospectus, is or will be available on the SEC’s website
at www.sec.gov. Alternatively, copies of the preliminary prospectus supplement, together with
the accompanying prospectus, can be obtained by contacting: Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island
Avenue, Edgewood, NY 11717, by email at barclaysprospectus@broadridge.com or telephone
at 1-888-603-5847; or Cantor Fitzgerald & Co., Attention: Capital Markets, 110 East 59th Street, 6th Floor, New York, NY 10022, or
by email at prospectus@cantor.com.
About Strive
Strive is a structured finance company focused on disciplined capital
allocation and long term value creation. We have strategically adopted bitcoin as our hurdle rate for capital deployment because of our
fiduciary duty to maximize long-term value for stockholders and compound purchasing power over time.
Strive Asset Management, LLC, a direct, wholly
owned subsidiary of Strive and an SEC-registered investment adviser, manages over $2.8 billion in assets.
2
Cautionary Statement Regarding Forward-Looking
Statements
Certain statements herein may constitute “forward-looking
statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933,
as amended (the “Securities Act”), and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of
1934, as amended (the “Exchange Act”), and Rule 3b-6 promulgated thereunder, which statements involve inherent risks
and uncertainties. Examples of forward-looking statements include, but are not limited to, express or implied statements regarding the
outlook and expectations of Strive and its subsidiaries, the strategic benefits and financial benefits of the merger transaction with
Semler Scientific, Inc. (the “merger transaction”), including the expected impact of the merger transaction on Strive’s
future financial performance and the ability to successfully integrate the combined businesses, the estimated proceeds of the offering,
the anticipated timing of settlement, the anticipated use of any proceeds from the offering and the terms of the securities being offered.
Such statements are often characterized by the use of qualified words (and their derivatives) such as “may,” “will,”
“anticipate,” “could,” “should,” “would,” “believe,” “contemplate,”
“expect,” “estimate,” “continue,” “plan,” “project,” “predict,”
“potential,” “assume,” “forecast,” “target,” “budget,” “outlook,”
“trend,” “guidance,” “objective,” “goal,” “strategy,” “opportunity,”
and “intend,” as well as words of similar meaning or other statements concerning opinions or judgments of Strive and its respective
management team about future events. Forward-looking statements are based on assumptions as of the time they are made and are subject
to risks, uncertainties and other factors that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence,
which could cause actual results to differ materially from anticipated results expressed or implied by such forward-looking statements
as a result of various important factors. Other risks, uncertainties and assumptions, including, among others, the following:
· the outcome of any legal proceedings that may be instituted against Strive or its subsidiaries;
· the possibility that the anticipated benefits of the merger transaction are not realized when expected
or at all, including as a result of changes in, or problems arising from, implementation of Bitcoin treasury strategies and risks associated
with Bitcoin and other digital assets, general economic and market conditions, interest and exchange rates, monetary policy, and laws
and regulations and their enforcement;
· the diversion of management’s attention from ongoing business operations and opportunities;
· dilution caused by Strive’s issuance of additional shares of its SATS Stock, Class A Common Stock
or SATA Stock;
· potential adverse reactions of Strive’s clients and customers or changes to business or employee
relationships, including those resulting from the completion of the merger transaction; and
· other factors that may affect future results of Strive or the future trading performance of its SATS Stock,
Class A Common Stock or SATA Stock.
These factors are not necessarily all of the factors
that could cause Strive’s actual results, performance or achievements to differ materially from those expressed in or implied by
any of the
3
forward-looking statements. Other factors, including
unknown or unpredictable factors, also could harm Strive’s results.
Although Strive believes that its expectations
with respect to forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business
and operations, there can be no assurance that the actual results of Strive will not differ materially from any projected future results
expressed or implied by such forward-looking statements. Additional factors that could cause results to differ materially from those described
above can be found in Strive’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and quarterly reports on Form
10-Q, and other documents subsequently filed by Strive with the SEC.
The actual results anticipated may not be realized
or, even if substantially realized, they may not have the expected consequences to or effects on Strive or its businesses or operations.
Investors are cautioned not to rely too heavily on any such forward-looking statements. Forward-looking statements contained in this press
release speak only as of the date hereof, and Strive undertakes no obligation to update or clarify these forward-looking statements, whether
as a result of new information, future events or otherwise, except to the extent required by applicable law.
No Offer or Solicitation
This press release is
not intended to and shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy
any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities laws of any such jurisdiction.
Strive Media Contact:
media@strive.com
Investor Contact:
ir@strive.com
Source: Strive, Inc.
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Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 14a
-Subsection 12
+ Details
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dei_SolicitingMaterial
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X
- Definition
Trading symbol of an instrument as listed on an exchange.
+ References
No definition available.
+ Details
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- Definition
Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Securities Act
-Number 230
-Section 425
+ Details
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- Details
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- Details
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