Attached files
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| EX-10.2 - FORM OF SERIES A WARRANT DATED DECEMBER 15, 2011 - Luxeyard, Inc. | v243694_ex10-2.htm |
| EX-10.1 - SUBSCRIPTION AGREEMENT DATED DECEMBER 15, 2011 - Luxeyard, Inc. | v243694_ex10-1.htm |
| EX-10.3 - FORM OF SERIES B WARRANT DATED DECEMBER 15, 2011 - Luxeyard, Inc. | v243694_ex10-3.htm |
| EX-10.4 - REGISTRATION RIGHTS AGREEMENT DATED DECEMBER 15, 2011 - Luxeyard, Inc. | v243694_ex10-4.htm |
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): December 15, 2011
TOP GEAR INC.
(Exact name of registrant as specified in its charter)
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Delaware
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333-168066
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30-0473898
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(State or other jurisdiction of
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(Commission File Number)
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(IRS Employer Identification No.)
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incorporation)
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4063 Glencoe Ave., Suite A
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Marina Del Rey, CA
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90292
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(Address of principal executive offices)
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(Zip Code)
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Registrant’s telephone number, including area code: (713) 862-3000
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Not Applicable
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(Former name or former address, if changed since last report)
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨ 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))
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Item 1.01
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Entry into a Material Definitive Agreement.
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On December 15, 2011 (the “Closing Date”), Top Gear Inc. (the “Company”) completed an initial closing of a private offering (the “Offering”) of units consisting of an aggregate of (i) 132,354 shares of its common stock (the “Shares”), (ii) Series A warrants to purchase 66,177 shares of its common stock which have a five-year term and an initial per share exercise price of $5.10, subject to adjustment as described below (the “Series A Warrants”), and (iii) Series B warrants to purchase 66,177 shares of its common stock which have a five-year term and an initial per share exercise price of $10.20, subject to adjustment as described below (the “Series B Warrants”). The price per unit was $3.40 for an aggregate purchase price of $450,000 (the “Purchase Price”).
Subscription Agreement
The units were offered and sold to the subscribers in the Offering (each, a “Subscriber” and collectively the “Subscribers”) pursuant to a subscription agreement (the “Subscription Agreement”).
Antidilution Protection. Subject to certain exceptions, if at any time during the twelve (12) months following the closing of the Offering the Company issues or sells shares of its common stock at a price per share less than $5.10 (as adjusted for any stock dividend, stock split, stock combination or other similar transaction), the Company is required to promptly thereafter issue to each Subscriber following such new issuance that number of shares of its common stock equal to the greater of (I) zero and (II) the difference of (i) the quotient of (x) such Subscriber’s purchase price divided by (y) the price per share of the new issuance, less (ii) the number of shares of common stock previously issued to such Subscriber pursuant to the Subscription Agreement (as adjusted for any stock dividend, stock split, stock combination or other similar transaction).
Forward Split. As soon as reasonably practicable following the closing of the Offering, the Company intends to effectuate a 17:1 forward stock split of its common stock (the “Forward Split”). Accordingly, the equivalent Purchase Price per Share immediately following the Forward Split shall be $0.20; (ii) the exercise price of the Series A Warrants immediately following the Forward Split (assuming no other adjustments to the exercise price of the Series A Warrants) shall be $0.30 per share; and (iii) the exercise price of the Series B Warrants immediately following the Forward Split (assuming no other adjustments to the exercise price of the Series B Warrants) shall be $0.60 per share.
Warrants
The Series A Warrants have a five-year term and are exercisable for an aggregate of 66,177 shares of the Company’s common stock at an initial per share exercise price of $5.10, subject to adjustment as set forth below. The Series B Warrants have a five-year term and are exercisable for an aggregate of 66,177 shares of the Company’s common stock at an initial per share exercise price of $10.20, subject to adjustment as set forth below.
The exercise prices of the Series A Warrants and Series B Warrants are subject to adjustment upon certain events, such as stock splits, combinations, dividends, distributions, reclassifications, mergers or other corporate changes. In addition, subject to certain exceptions, if at any time after the Closing Date, the Company issues or sells any shares of its common stock at a price per share less than the exercise price of the applicable Warrant (each, a “Dilutive Issuance”), then immediately after such Dilutive Issuance, the exercise price of the applicable Warrants then in effect shall be reduced to an amount equal to the price per share of such Dilutive Issuance. The Warrants can be exercised on a cashless basis if certain conditions are met.
Registration Rights Agreement
On the Closing Date and in connection with Offering, we entered into a registration rights agreement (the “Registration Rights Agreement”) with the Subscribers granting the Subscribers piggy-back registration rights with respect to the Shares and the shares of common stock underlying the Warrants (the “Warrant Shares”).
The foregoing descriptions of the Offering, Subscription Agreement, Series A Warrants, Series B Warrants and Registration Rights Agreement are qualified in their entirety by reference to the provisions of the Subscription Agreement, form of Series A Warrant, form of Series B Warrant and Registration Rights Agreement filed as Exhibits 10.1, 10.2, 10.3 and 10.4 to this Current Report on Form 8-K (this “Report”), respectively, which are incorporated by reference herein.
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Item 3.02
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Unregistered Sales of Equity Securities.
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The information contained in Item 1.01 above is incorporated herein by reference in response to this Item 3.02.
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The Shares and Warrants were offered and sold in reliance upon exemptions from registration pursuant to Section 4(2) of the Securities Act and Rule 506 of Regulation D (“Regulation D”) promulgated under the Securities Act. The Company made this determination based on the representations of the investors which included, in pertinent part, that each such investor was an “accredited investor” within the meaning of Rule 501 of Regulation D and upon such further representations from each investor that (i) such investor is acquiring the securities for its own account for investment and not for the account of any other person and not with a view to or for distribution, assignment or resale in connection with any distribution within the meaning of the Securities Act, (ii) such investor agrees not to sell or otherwise transfer the purchased securities or shares underlying such securities unless they are registered under the Securities Act and any applicable state securities laws, or an exemption or exemptions from such registration are available, (iii) such investor has knowledge and experience in financial and business matters such that such investor is capable of evaluating the merits and risks of an investment in us, (iv) such investor had access to all of the Company’s documents, records, and books pertaining to the investment and was provided the opportunity to ask questions and receive answers regarding the terms and conditions of the Offering and to obtain any additional information which the Company possessed or was able to acquire without unreasonable effort and expense, and (v) such investor has no need for the liquidity in its investment in us and could afford the complete loss of such investment. In addition, there was no general solicitation or advertising for securities issued in reliance upon Regulation D.
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Item 9.01
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Financial Statements and Exhibits.
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(d) Exhibits.
Certain of the agreements filed as exhibits to this Report contain representations and warranties by the parties to the agreements that have been made solely for the benefit of the parties to the agreement. These representations and warranties:
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·
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may have been qualified by disclosures that were made to the other parties in connection with the negotiation of the agreements, which disclosures are not necessarily reflected in the agreements;
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may apply standards of materiality that differ from those of a reasonable investor; and
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were made only as of specified dates contained in the agreements and are subject to subsequent developments and changed circumstances.
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Accordingly, these representations and warranties may not describe the actual state of affairs as of the date that these representations and warranties were made or at any other time. Investors should not rely on them as statements of fact.
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Exhibit
Number
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Description
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10.1
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Subscription Agreement dated December 15, 2011
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10.2
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Form of Series A Warrant dated December 15, 2011
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10.3
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Form of Series B Warrant dated December 15, 2011
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10.4
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Registration Rights Agreement dated December 15, 2011
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Dated: December 15, 2011
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TOP GEAR INC.
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By:
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/s/ Braden Richter
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Braden Richter
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President and Chief Executive Officer
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