SONIC CORP. (NASDAQ:SONC) Files An 8-K Submission of Matters to a Vote of Security HoldersITEM 5.07Submission of Matters to a Vote of Security Holders.
On December 6, 2018, Sonic Corp., a Delaware corporation (which we refer to as “Sonic”), held a special meeting of its stockholders (which we refer to as the “special meeting”) to vote on the proposals described in Sonic’s definitive proxy statement filed with the SEC on November 5, 2018 and supplemented by Sonic’s proxy statement supplements filed with the SEC on November 7, 2018, November 21, 2018 and November 29, 2018. The final voting results regarding each proposal are set forth below. As of the close of business on November 2, 2018, the record date for the special meeting, there were 35,692,190 shares of Sonic common stock outstanding and entitled to vote at the special meeting. At the special meeting, there were29,184,687 shares represented in person or by proxy, which number constituted a quorum.
Proposal 1 – Approval of the Merger Proposal
At the special meeting, Sonic’s stockholders approved the proposal to adopt the Agreement and Plan of Merger, dated as of September 24, 2018 (which we refer to as the “merger agreement”), among Inspire Brands, Inc. (which we refer to as “Inspire”), SSK Merger Sub, Inc. (which we refer to as “Merger Sub”), and Sonic, to which Merger Sub will merge with and into Sonic (which we refer to as the “merger”), and Sonic will become a wholly owned subsidiary of Inspire, and the vote was as follows:
|
For |
Against |
Abstain |
Broker Non-Votes |
|
|
Total Shares Voted |
29,035,313 |
83,365 |
66,009 |
|
Proposal 2 – Approval of the Executive Compensation Proposal
At the special meeting, Sonic’s stockholders approved the proposal to approve, on a non-binding advisory basis, specified compensation that may be paid or become payable to Sonic’s named executive officers in connection with the merger and contemplated by the merger agreement, and the vote was as follows:
|
For |
Against |
Abstain |
|
|
Total Shares Voted |
28,312,038 |
745,787 |
126,862 |
Proposal 3 – Approval of the Adjournment Proposal
In connection with the special meeting, Sonic also solicited proxies with respect to a proposal to approve one or more adjournments of the special meeting, if necessary or appropriate, to solicit additional proxies if there were insufficient votes at the time of the special meeting to approve the proposal to adopt the merger agreement. Because there were sufficient votes represented at the time of the special meeting to approve the proposal to adopt the merger agreement, the proposal to approve one or more adjournments of the special meeting was moot and was not presented.
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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This communication contains “forward-looking statements” within the meaning of the U.S. federal securities laws. Such statements include statements concerning anticipated future events and expectations that are not historical facts. All statements other than statements of historical fact are statements that could be deemed forward-looking statements.
Actual results may vary materially from those expressed or implied by forward-looking statements based on a number of factors, including, without limitation: (1) risks related to the consummation of the merger, including the risks that (a) the merger may not be consummated within the anticipated time period, or at all, (b) conditions to the consummation of the merger under the merger agreement may not be satisfied, and (c) the significant limitations on remedies contained in the merger agreement may limit or entirely prevent Sonic Corp. from specifically enforcing Inspire Brands, Inc.’s obligations under the merger agreement or recovering damages for any breach by Inspire Brands, Inc.; (2) the effects that any termination of the merger agreement may have on Sonic Corp. or its business, including the risks that (a) Sonic Corp.’s stock price may decline significantly if the merger is not completed, (b) the merger agreement may be terminated in circumstances requiring Sonic Corp. to pay Inspire Brands, Inc. a termination fee, or (c) the circumstances of the termination, including the possible imposition of a 12-month tail period during which the termination fee could be payable upon certain subsequent transactions, may have a chilling effect on alternatives to the merger; (3) the effects that the announcement or pendency of the merger may have on Sonic Corp. and its business, including the risks that as a result (a) Sonic Corp.’s business, operating results or stock price may suffer, (b) Sonic Corp.’s current plans and operations may be disrupted, (c) Sonic Corp’s ability to retain or recruit key employees may be adversely affected, (d) Sonic Corp.’s business relationships (including, customers, franchisees and suppliers) may be adversely affected, or (e) Sonic Corp’s management’s or employees’ attention may be diverted from other important matters; (4) the effect of limitations that the merger agreement places on Sonic Corp’s ability to operate its business, return capital to shareholders or engage in alternative transactions; (5) the nature, cost and outcome of pending and future litigation and other legal proceedings, including any such proceedings related to the merger and instituted against Sonic Corp. and others; (6) the risk that the merger and related transactions may involve unexpected costs, liabilities or delays; (7) other economic, business, competitive, legal, regulatory, and/or tax factors; and (8) other factors described under the heading “Risk Factors” in Part I, Item 1A of Sonic Corp.’s Annual Report on Form 10-K for the fiscal year ended August 31, 2018, as updated or supplemented by subsequent reports that Sonic Corp. has filed or files with the SEC and in Sonic Corp.’s definitive proxy statement, filed with the SEC on November 5, 2018. Potential investors, shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. Neither Inspire Brands, Inc. nor Sonic Corp. assumes any obligation to publicly update any forward-looking statement after it is made, whether as a result of new information, future events or otherwise, except as required by law.
About SONIC CORP. (NASDAQ:SONC)
Sonic Corp. operates and franchises the chain of drive-thru restaurants (Sonic Drive-Ins) in the United States. As of August 31, 2016, 3,557 Sonic Drive-Ins were in operation from coast to coast in 45 states, consisting of 345 Company drive-thrus and 3,212 franchise drive-thrus. As of August 31, 2016, its restaurant design and construction consisted of a kitchen housed in a one-story building, which was approximately 1,500 square feet, flanked by canopy-covered rows of 16 to 24 parking spaces, with each space having its own payment terminal, intercom speaker system and menu board. At a Sonic Drive-In, a customer drives into one of the parking spaces, orders through the intercom speaker system and has the food delivered by a carhop and Sonic Drive-Ins also include a drive-thru lane and patio seating to provide customers with alternative dining options. Its food items include specialty drinks, such as cherry limeades and slushes, ice cream desserts and chicken sandwiches and hamburgers.