Item 1.01. Entry into a Material Definitive Agreement.
Merger Agreement with Kids2, Inc.
On March 16, 2022, Summer Infant, Inc. (the "Company") entered into an Agreementand Plan of Merger (the "Merger Agreement") by and among the Company,Kids2, Inc., a Georgia corporation ("Parent"), and Project Abacus AcquisitionCorp., a Delaware corporation and wholly owned subsidiary of Parent ("MergerSub"). The Merger Agreement provides, subject to its terms and conditions, forthe acquisition of the Company by Parent through the merger of Merger Sub withand into the Company, with the Company surviving the merger as a wholly ownedsubsidiary of Parent (the "Proposed Merger").
The Board of Directors of the Company (the "Board of Directors") unanimously(i) determined and declared that the Merger Agreement and the transactionscontemplated thereby, including the Proposed Merger, are advisable and in thebest interests of the Company and its stockholders; (ii) approved the MergerAgreement and the transactions contemplated thereby, including the ProposedMerger; and (iii) resolved to recommend that the Company's stockholders adoptthe Merger Agreement (the "Company Board Recommendation").
Under the terms of the Proposed Merger, (i) each share of common stock of theCompany issued and outstanding immediately prior to the effective time of theProposed Merger (the "Effective Time") (other than shares of common stock(a) owned by Parent, Merger Sub, the Company or any subsidiary of Parent, MergerSub or the Company, or (b) held by a stockholder who is entitled to, and who hasperfected, appraisal rights for such shares under Delaware law) automaticallywill be converted into the right to receive cash in an amount equal to $12.00per share (the "Merger Consideration"), without interest, subject to anyrequired withholding of taxes; and (ii) each outstanding unexercised, vested orunvested option or unvested restricted stock award outstanding immediately priorto the Effective Time will be converted into the right to receive cash (withoutinterest, subject to any required withholding of taxes) (a) in the case ofoptions, in an amount equal to the product of the excess, if any, of the MergerConsideration over the exercise price of such option, multiplied by the numberof shares of common stock issuable upon the exercise of the option or (b) in thecase of unvested restricted stock awards, in amount equal to the product of theMerger Consideration multiplied by the number of shares subject to therestricted stock award.
The completion of the Proposed Merger is subject to closing conditions,including: (i) the approval of the Merger Agreement by the Company'sstockholders (the "Stockholder Approval"); (ii) the absence of any laws or courtorders making the Proposed Merger illegal or otherwise prohibiting the ProposedMerger; (iii) other customary closing conditions, including the accuracy of therepresentations and warranties of each party (subject to certain materialityexceptions) and material compliance by each party with its covenants under theMerger Agreement; and (iv) the closing of a debt financing by Parent, a portionof the proceeds of which will fund Parent's obligation to pay the MergerConsideration.
Parent has entered into debt commitment letters providing for (i) an asset-basedcredit facility and (ii) a term loan, a portion of the proceeds of which willfund Parent's obligation to pay the Merger Consideration at the closing of theProposed Merger. The obligations of the lenders under the debt commitmentletters are subject to a number of conditions, including the receipt of executedloan documentation, accuracy of certain specified representations andwarranties, and certain pro forma financial conditions.
The Merger Agreement contains representations and warranties customary fortransactions of this type. The Company has agreed to various customary covenantsand agreements, including, among others, (i) agreements to use commerciallyreasonable efforts to conduct its and its subsidiaries' businesses in theordinary course of business during the period between the date of the MergerAgreement and the Effective Time and not to engage in certain kinds oftransactions during this period; and (ii) to call a meeting of its stockholdersto adopt the Merger Agreement.
The Company has also agreed not to (i) solicit proposals relating to alternativetransactions; or (ii) participate in any discussions or negotiations regarding,or furnish any non-public information relating to the Company in connectionwith, any proposal for an alternative transaction, subject to certain exceptionsto permit the Board of Directors to comply with its fiduciary duties.Notwithstanding these "no-shop" restrictions, prior to obtaining the Stockholder. . .
Item 2.02. Results of Operations and Financial Condition.
On March 16, 2022, the Company announced its financial results for the fourthfiscal quarter and full year ended January 1, 2022. The full text of the pressrelease issued in connection with the announcement is attached herewith asExhibit 99.1.
The information in this Item 2.02 and exhibit 99.1 attached hereto shall not bedeemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934(the "Exchange Act") or otherwise subject to the liabilities of that section,nor shall it be deemed incorporated by reference in any filing under theSecurities Act of 1933 (the "Securities Act") or the Exchange Act, except asexpressly set forth by specific reference in such a filing.
Item 5.02 Departure of Directors or Certain Officers; Election of Directors;Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
In connection with the entry into the Merger Agreement, on March 16, 2022, theBoard of Directors approved, and the Company entered into, the fourth amendment(the "Amendment") to the existing engagement letter between the Company andRiveron RTS, LLC ("Riveron"), originally dated December 9, 2019 and furtheramended on February 28, 2020, November 30, 2020 and January 3, 2022 (the"Engagement Letter"). The Amendment provides that if the Company consummates atransaction constituting a "Change in Control" (as defined in the Company'sAmended and Restated Change in Control Plan (the "Change in Control Plan")) (a"Sale Transaction"), the Company shall pay Riveron a success fee, payable at theclosing of the Sale Transaction, based upon the per share consideration receivedby holders of the Company's common stock in the Sale Transaction, which would beapproximately $258,120 based on the Merger Consideration.
As previously disclosed, neither Stuart Noyes, the Company's CEO and a member ofthe Company Board, nor Bruce Meier, the Company's Interim CFO, will receive anycompensation from the Company for their services, rather, the Companycompensates Riveron in accordance with the Engagement Letter, as amended.
The foregoing description of the Amendment does not purport to be complete andis qualified in its entirety by reference to the full text of the Amendment,which is filed herewith as Exhibit 10.3 and is incorporated herein by thisreference.
Item 7.01. Regulation FD Disclosure.
On March 16, 2022, the Company and Parent issued a joint press releaseannouncing the transactions contemplated by the Merger Agreement. The full textof the press release issued in connection with the announcement is attachedherewith as Exhibit 99.2.
The information in this Item 7.01 and exhibit 99.2 attached hereto shall not bedeemed "filed" for purposes of Section 18 of the Exchange Act or otherwisesubject to the liabilities of that section, nor shall it be deemed incorporatedby reference in any filing under the Securities Act or the Exchange Act, exceptas expressly set forth by specific reference in such a filing.
On February 9, 2022, the Board of Directors approved an amended and restatedchange in control plan to extend the term of the existing plan to February 9,2024.
The foregoing description of the amended and restated change in control Plandoes not purport to be complete and is qualified in its entirety by reference tothe full text of the amended and restated change in control plan, which is filedherewith as Exhibit 10.4 and is incorporated herein by this reference.
Additional Information about the Proposed Merger and Where to Find It
In connection with the Proposed Merger, the Company will prepare and filerelevant materials with the Securities and Exchange Commission (the "SEC"),including a proxy statement on Schedule 14A and a proxy card, to be mailed toCompany stockholders entitled to vote at the special meeting relating to theProposed Merger. This communication is not intended to be, and is not, asubstitute for the proxy statement or any other document that the Company mayfile with the SEC in connection with the Proposed Merger. INVESTORS ANDSTOCKHOLDERS ARE URGED TO CAREFULLY READ THE PROXY STATEMENT (INCLUDING ANYAMENDMENTS OR SUPPLEMENTS THERETO AND ANY DOCUMENTS INCORPORATED BY REFERENCETHEREIN) AND ANY OTHER RELEVANT DOCUMENTS IN CONNECTION WITH THE PROPOSED MERGERTHAT THE COMPANY WILL FILE WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEYWILL CONTAIN IMPORTANT INFORMATION ABOUT THE COMPANY AND THE PROPOSED MERGER.The definitive proxy statement, the preliminary proxy statement, and otherrelevant materials in connection with the transaction (when they becomeavailable) and any other documents filed or furnished by the Company with theSEC, may be obtained free of charge at the SEC's website (www.sec.gov). Inaddition, copies of the proxy statement and other relevant materials anddocuments filed by the Company with the SEC will also be available free ofcharge on the Investor Relations page of the Company's website located athttps://www.sumrbrands.com.
Participants in the Solicitation of Company Stockholders
The Company, Kids2, Inc. and their respective directors and executive officers,management and employees may be deemed to be participants in the solicitation ofproxies from the Company's stockholders in connection with the Proposed Merger.Information about the Company's directors and executive officers and theirownership of Company common stock is set forth in its definitive proxy statementfor its 2021 annual meeting of shareholders filed with the SEC on April 16,2021. To the extent that holdings of the Company's securities have changed sincethe amounts reflected in the Company's proxy statement, such changes have beenor will be reflected on Statements of Change in Ownership on Form 4 filed withthe SEC. Additional information regarding the participants in the solicitationand their interests in the Proposed Merger will be included in the proxystatement and other materials relating to the Proposed Merger when they arefiled with the SEC. These documents may be obtained free of charge at the SEC'sweb site at http://www.sec.gov and on the Investor Relations page of the Company'swebsite located at https://www.sumrbrands.com.
Cautionary Note Regarding Forward-Looking Statements
This Form 8-K contains (and oral communications made by us may contain)"forward-looking statements" within the meaning of Section 27A of the SecuritiesAct and Section 21E of the Exchange Act. Forward-looking statements can beidentified by words such as "anticipate," "believe," "estimate," "expect,""intend," "plan," "predict," "project," "target," "future," "seek," "likely,""strategy," "may," "should," "will," and similar references to future periodsand include statements regarding the proposed merger with Kids2, includingstatements relating to the Proposed Merger.
Forward-looking statements are neither historical facts nor assurances of futureperformance. Instead, they are based only on our current beliefs, expectations,and assumptions regarding the future of our business, future plans andstrategies, projections, anticipated events and trends, the economy, and otherfuture conditions. Because forward-looking statements relate to the future, theyare subject to inherent uncertainties, risks, and changes in circumstances thatare difficult to predict and many of which are outside of our control. TheCompany's actual results may differ materially from those indicated in theforward-looking statements. Therefore, you should not rely on any of theseforward-looking statements. Important factors that could cause our actualresults to differ materially from those indicated in the forward-lookingstatements include, among others, risks related to disruption of management'sattention from ongoing business operations due to the Proposed Merger; the riskthat one or more closing conditions to the transaction may not be satisfied orwaived, on a timely basis or otherwise; the risk that the transaction does notclose when anticipated, or at all; the occurrence of any event, change or othercircumstances that could give rise to the termination of the merger agreement;potential adverse reactions or changes to employee or business relationshipsresulting from the announcement or completion of the proposed merger; the riskof litigation or legal proceedings related to the Proposed Merger; unexpectedcosts, charges or expenses resulting from the Proposed Merger; and other factorsdiscussed in the "Risk Factors" section of the Company's most recent AnnualReport on Form 10-K, and the Company's subsequent Quarterly Reports on Form 10-Qand in other filings the Company makes with the SEC from time to time. Allinformation provided in this release is as of the date hereof and the Companyundertakes no duty to update this information except as required by law.
Item 9.01. Financial Statements and Exhibits.
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
* Schedules omitted pursuant to Item 601(b)(2) of Regulation S-K.
** Portions of this exhibit have been omitted for confidential treatment pursuant
to Regulation K, Item 601(b)(10).
Edgar Online, source Glimpses
- Why Congress Must Reform FISA Section 702and How It Can - brennancenter.org - April 12th, 2024 [April 12th, 2024]
- CIA wants more power to spy on Americans - Washington Times - April 12th, 2024 [April 12th, 2024]
- Keyboard search warrants and the Fourth Amendment | Brookings - Brookings Institution - February 22nd, 2024 [February 22nd, 2024]
- Just Published: "Terms of Service and Fourth Amendment Rights" - Reason - February 22nd, 2024 [February 22nd, 2024]
- Can Texas police set up DWI checkpoints in Dallas-Fort Worth? Here's what to know - Yahoo News Canada - February 16th, 2024 [February 16th, 2024]
- The FBI's Lawless Raid on U.S. Private Vaults Shows Why the Founders Created the Fourth Amendment | Jon Miltimore - Foundation for Economic Education - February 16th, 2024 [February 16th, 2024]
- HCSO to release body cam footage to plaintiff alleging Fourth Amendment violation - Smoky Mountain News - December 19th, 2023 [December 19th, 2023]
- Section 702 surveillance doesn't belong in the NDAA - Defense One - December 16th, 2023 [December 16th, 2023]
- Valkyrie's Fourth Amendment for the Launch of a Bitcoin ETF - Crypto Times - December 16th, 2023 [December 16th, 2023]
- Digital justice: Supreme Court increasingly confronts law and the internet - Washington Times - December 14th, 2023 [December 14th, 2023]
- Trump and Section 3 of the Fourteenth Amendment: An Exploration ... - JURIST - October 13th, 2023 [October 13th, 2023]
- Expert Q&A with David Aaron on FISA Section 702 Reauthorization ... - Just Security - October 13th, 2023 [October 13th, 2023]
- A Constitution the Government Evades - Tenth Amendment Center - October 13th, 2023 [October 13th, 2023]
- First and Fourth Amendment Claims Over Arrest at Protest of Police ... - Reason - September 25th, 2023 [September 25th, 2023]
- Law enforcement violation of the fourth amendment - Daily Kos - September 25th, 2023 [September 25th, 2023]
- D.C. Appeals Court weighs whether phone seizures from 2020 ... - Washington Times - September 25th, 2023 [September 25th, 2023]
- Opinion: Why you shouldn't turn on your phone in church Palo Alto ... - The Daily Post - September 25th, 2023 [September 25th, 2023]
- Court attorneys group hosts CLE seminar with esteemed Justice ... - Brooklyn Daily Eagle - September 25th, 2023 [September 25th, 2023]
- Former Dona Ana County Deputy Sheriff Charged with Federal Civil ... - Department of Justice - September 25th, 2023 [September 25th, 2023]
- Editorial: Renters rights ruling | Opinion - nwestiowa.com - September 25th, 2023 [September 25th, 2023]
- U.S. Attorney's Statement Regarding Proposed Changes to Crime ... - Department of Justice - September 25th, 2023 [September 25th, 2023]
- New Jersey provides a road map for fighting racially biased traffic ... - Slate - September 25th, 2023 [September 25th, 2023]
- Animal rights advocates sue after facing ongoing censorship and ... - Foundation for Individual Rights in Education - September 25th, 2023 [September 25th, 2023]
- Gerald Jako Pleads Guilty to Two Counts of Murder in Ohio County - Wheeling Intelligencer - September 25th, 2023 [September 25th, 2023]
- Supreme Court of Appeals Visits Campus The Parthenon - MU The Parthenon - September 25th, 2023 [September 25th, 2023]
- Securities and Exchange Board of India (Listing Obligations and ... - Tax Management India. Com - September 25th, 2023 [September 25th, 2023]
- Legal Strategies For A Strong Defense Against Bribery Accusations - American Judicature Society - September 25th, 2023 [September 25th, 2023]
- Police get new images of area break-in suspect - Southwest Virginia Today - September 15th, 2023 [September 15th, 2023]
- Napolitano: Is the CIA in your underwear? | News, Sports, Jobs - Standard-Examiner - September 15th, 2023 [September 15th, 2023]
- Bulletin: Maryland Juvenile Services Head Says Violence Among ... - The Trace - September 15th, 2023 [September 15th, 2023]
- Tased horseman's excessive force claims clear bar Rhode Island ... - Rhode Island Lawyers Weekly - September 15th, 2023 [September 15th, 2023]
- The absurdity of fact-checkers | Columnists | leader-call.com - leader-call.com - September 15th, 2023 [September 15th, 2023]
- Facial Recognition Technology and False Arrests: Should Black ... - Capital B - September 15th, 2023 [September 15th, 2023]
- Letter to the editor - Southeast Iowa Union - September 15th, 2023 [September 15th, 2023]
- Petition hopes to stop US government agencies from using ... - Cointelegraph - September 15th, 2023 [September 15th, 2023]
- Passing on the legacy of 9/11 to the next generation The ... - The Duquesne Duke - September 15th, 2023 [September 15th, 2023]
- Congress Should Reauthorize a Key Intelligence Tool - Foreign Policy Research Institute - September 5th, 2023 [September 5th, 2023]
- Kansas City police made arrests based on rescinded warrants ... - Kansas Reflector - September 5th, 2023 [September 5th, 2023]
- Tased horsemans excessive force claims clear bar - Virginia Lawyers Weekly - September 5th, 2023 [September 5th, 2023]
- Ball is in AL's court - newagebd.net - September 5th, 2023 [September 5th, 2023]
- Lawsuit against police chief just the latest shoe to drop in Marion ... - Kansas Reflector - September 5th, 2023 [September 5th, 2023]
- In the wake of Idalia, residents of one Florida town are turning to ... - Poynter - September 5th, 2023 [September 5th, 2023]
- NYPD using drones to monitor NYC backyard Labor Day parties, spurring privacy concerns - NBC New York - September 5th, 2023 [September 5th, 2023]
- City of Grand Rapids dismissed, lawsuit against Christopher Schurr ... - FOX 17 West Michigan News - September 5th, 2023 [September 5th, 2023]
- OSHA's Proposed Rule Would Allow Union Walkthroughs of All ... - Fisher Phillips - September 5th, 2023 [September 5th, 2023]
- Letters From Readers, Aug. 31, 2023 | Opinion | avpress.com - Antelope Valley Press - September 5th, 2023 [September 5th, 2023]
- Where are the Noah's Park animals? - The Pike County Courier - September 5th, 2023 [September 5th, 2023]
- His hands were up: Attorney for football game shooting victim says civil rights violated - Yahoo News - September 5th, 2023 [September 5th, 2023]
- NYC voters explain why theyre voting for RFK Jr. over Biden: Going ... - 1330 WFIN - September 5th, 2023 [September 5th, 2023]
- Houston Food Not Bombs in Court over Feeding the Unhoused - The Texas Observer - September 5th, 2023 [September 5th, 2023]
- Search and seizure Equal protection Discriminatory policing - Massachusetts Lawyers Weekly - May 18th, 2023 [May 18th, 2023]
- The Timing of Computer Search Warrants When It Takes the ... - Reason - May 18th, 2023 [May 18th, 2023]
- Councilmembers Inquired About Pretext Stops By Police One Year ... - Pasadena Now - May 18th, 2023 [May 18th, 2023]
- BARINGS BDC, INC. : Entry into a Material Definitive Agreement, Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet... - May 18th, 2023 [May 18th, 2023]
- Alabama appeals court reverses murder conviction of Ala. officer ... - Police News - May 18th, 2023 [May 18th, 2023]
- Oakland narrows town manager search to five | West Orange Times ... - West Orange Times & SouthWest Orange Observer - May 18th, 2023 [May 18th, 2023]
- The Durham Report Is Right About the Need for More FBI Oversight - Reason - May 18th, 2023 [May 18th, 2023]
- Collective knowledge doctrine applies to a traffic stop - Police News - May 18th, 2023 [May 18th, 2023]
- Interpretation: The Fourth Amendment | Constitution Center - March 31st, 2023 [March 31st, 2023]
- Public Schools :: Fourth Amendment -- Search and Seizure :: US ... - January 2nd, 2023 [January 2nd, 2023]
- BSE : Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) (Fourth Amendment) Regulations, 2022 - Marketscreener.com - November 27th, 2022 [November 27th, 2022]
- Trump legal counsel vows 'Fourth Amendment based' challenge to Mar-a ... - October 21st, 2022 [October 21st, 2022]
- Get to Know the EFA: Digital Fourth - EFF - October 13th, 2022 [October 13th, 2022]
- Arguments heard in body in trunk case | News, Sports, Jobs - Minot Daily News - October 13th, 2022 [October 13th, 2022]
- Ormond Beach Planning Board to meet Thursday - Ormond Beach Observer - October 13th, 2022 [October 13th, 2022]
- Limiting the Power of Police in Schools - The Regulatory Review - October 13th, 2022 [October 13th, 2022]
- Letter to the Editor: What Republicans Believe - Door County Pulse - October 13th, 2022 [October 13th, 2022]
- Trump wants other presidents investigated - KRLD - October 13th, 2022 [October 13th, 2022]
- Trump Rally Speech Shows He's 'Guilty and Scared': Former Prosecutor - Newsweek - October 13th, 2022 [October 13th, 2022]
- Court Strips Immunity From Cop Who Shot A Dog Within Seconds Of Arriving On The Scene Of A Non-Crime - Techdirt - October 6th, 2022 [October 6th, 2022]
- Claiming to have 4.3 trillion readers, the Onion supports parodist and its writers' paychecks in SCOTUS brief - ABA Journal - October 6th, 2022 [October 6th, 2022]
- INHIBRX, INC. : Entry into a Material Definitive Agreement, Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet... - October 6th, 2022 [October 6th, 2022]
- PennLive goes to court for records related to U.S. Rep. Scott Perrys cell phone - PennLive - October 6th, 2022 [October 6th, 2022]
- Rusty Hardin & Associates Strengthens Litigation Team with Addition of Attorney Aisha Dennis - PR Newswire - October 6th, 2022 [October 6th, 2022]
- Vancouver City Council asked to OK $725000 deal with family of man killed by police - The Columbian - October 6th, 2022 [October 6th, 2022]
- Govt plans to auction 22 mineral blocks in 3 states within next two months - Business Standard - October 6th, 2022 [October 6th, 2022]
- Fort Worth officers sued after being accused of violating rights - WFAA.com - September 27th, 2022 [September 27th, 2022]
- LSU professors, students weigh in on constitutionality of room scans for online exams - The Reveille, LSU's student newspaper - September 27th, 2022 [September 27th, 2022]
- Solution for ideological division: Revising the Constitution? - The Christian Science Monitor - September 27th, 2022 [September 27th, 2022]
- Lawsuit says teen was thrown in solitary confinement and abused inside Maine's youth prisons - observer-me.com - September 27th, 2022 [September 27th, 2022]