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): March 9, 2021
Super League Gaming, Inc.
(Exact name of registrant as specified in its charter)
DELAWARE
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001-38819
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47-1990734
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(IRS Employer Identification Number)
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2912 Colorado Avenue, Suite #203
Santa Monica, California 90404
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(Address of principal executive offices)
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(802) 294-2754
(Registrant’s telephone number, including area
code)
Not Applicable
(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 registrant
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))
Indicate by check mark whether the Registrant is an emerging growth
company as defined in Rule 405 of the Securities Act of 1933
(§230.405 of this chapter) or Rule 12b-2 of the
Securities Exchange Act of 1934 (§240.12b-2 of this
chapter).
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the
Registrant 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. ☐
Securities registered pursuant to Section 12(b) of the
Act:
Title of each class
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Trading Symbol(s)
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Name of each exchange on which
registered
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Common
Stock, par value $0.001 per share
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SLGG
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Nasdaq
Capital Market
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Item 1.01 Entry into a Material Definitive Agreement.
On March 9, 2021, Super League Gaming, Inc. (the
“Company”) entered into an Agreement and Plan of
Merger (the “Merger
Agreement”) by and among
Mobcrush Streaming, Inc. (“Mobcrush”), the Company, and SLG Merger Sub II,
Inc., a wholly-owned subsidiary of the Company
(“Merger Co”). The Merger Agreement provides for the
acquisition of Mobcrush by Super League pursuant to the merger of
Merger Co with and into Mobcrush, with Mobcrush as the surviving
corporation (the “Merger”). Upon completion of the Merger, Mobcrush
will be a wholly-owned subsidiary of the
Company.
Merger Consideration
In accordance with the terms and subject to the conditions of the
Merger Agreement: (A) each outstanding share of Mobcrush common
stock, par value $0.001 per share ("Mobcrush Common
Stock"), and Mobcrush preferred
stock, par value $0.001 ("Mobcrush Preferred
Stock", and with the Mobcrush
Common Stock, the "Mobcrush
Stock") (other than dissenting
shares) will be canceled and converted into the right to receive
(i) 0.528 shares of the Company's common stock, par value $0.001
per share ("Company Common
Stock"), as determined in the
Merger Agreement (the “Share Conversion
Ratio”), and (ii) any
cash in lieu of fractional shares of Common Stock otherwise
issuable under the Merger Agreement (the "Merger
Consideration"); (B) vested
options of Mobcrush will be assumed by Mobcrush and converted into
comparable options that are exercisable for shares of Company
Common Stock, with a value determined in accordance with the Share
Conversion Ratio; and (C) unvested options of Mobcrush will either
be (i) assumed by the Company and converted into comparable options
that are exercisable for shares of Company Common Stock, with a
value as determined by the Company and Mobcrush prior to the
closing of the Merger, or (ii) terminated and re-issued as options
that are exercisable for shares of Company Common Stock with a
value as determined by the Company and Mobcrush prior to the
closing of the Merger. Subject to certain adjustments and other
terms and conditions more specifically set forth in the Merger
Agreement, the Company will be issuing 12,582,204 shares of Company
Common Stock as the Merger Consideration.
Covenants
The Merger Agreement contains representations, warranties and
covenants of each of the parties thereto that are customary for
transactions of this type. Mobcrush and the Company have, among
other things as set forth in the Merger Agreement, agreed to take
all necessary action such that effective immediately after the
closing of the Merger, the Company's board of directors (the
“Board”) shall consist of eight directors, of whom
one individual shall be Mike Wann, the Chief Executive Officer of
Mobcrush, and another individual that qualifies as an
“independent director” pursuant to the rules and
regulations of Nasdaq Stock Market, shall be designated by
agreement between Mike Wann and the remaining members of the Board,
with the remaining six individuals designated by the
Company.
Conditions to Each Party’s Obligations
The obligations of the Company and Mobcrush to consummate the
Merger are subject to certain closing conditions, including, but
not limited to, (i) the approval of Mobcrush's and the
Company’s shareholders, (ii) Mobcrush and the Company
reaching an agreement as to the treatment of Mobcrush's unvested
options exercisable for shares of Mobcrush Common Stock, (iii)
receipt of any necessary regulatory approvals, (iv) the execution
and delivery of the Support Agreements by the Voting Stockholders
(as more specifically discussed below), and (v) the execution and
delivery of the Registration Rights Agreement (as more specifically
set forth below).
The foregoing description of the Merger Agreement is subject to and
is qualified in its entirety by reference to the full text of the
Merger Agreement, a copy of which is included as Exhibit 2.1
hereto, and the terms of which are incorporated herein by
reference.
The Merger Agreement contains representations, warranties and
covenants of each of the parties thereto that are customary for
transactions of this type, and such representations, warrants, and
covenants were made to each other as of the date of the Merger
Agreement or other specific dates. The assertions embodied in those
representations, warranties and covenants were made for purposes of
the contract among the respective parties and are subject to
important qualifications and limitations agreed to by the parties
in connection with negotiating the Merger Agreement. The Merger
Agreement will be filed to provide investors with information
regarding its terms. It is not intended to provide any other
factual information about the parties to the Merger Agreement. In
particular, the representations, warranties, covenants and
agreements contained in the Merger Agreement, which were made
only for purposes of the Merger Agreement and as of specific dates,
were solely for the benefit of the parties to the Merger Agreement,
may be subject to limitations agreed upon by the contracting
parties (including being qualified by confidential disclosures made
for the purposes of allocating contractual risk between the parties
to the Merger Agreement instead of establishing these matters as
facts) and may be subject to standards of materiality applicable to
the contracting parties that differ from those applicable to
investors, security holders and reports and documents filed with
the SEC. Investors and security holders are not third-party
beneficiaries under Merger Agreement and should not rely on the
representations, warranties, covenants and agreements, or any
descriptions thereof, as characterizations of the actual state of
facts or condition of any party to the Merger Agreement. In
addition, the representations, warranties, covenants and agreements
and other terms of the Merger Agreement may be subject to
subsequent waiver or modification. Moreover, information concerning
the subject matter of the representations and warranties and other
terms may change after the date of the Merger Agreement, which
subsequent information may or may not be fully reflected in the
Company's public disclosures.
Voting and Support Agreements
Pursuant to the Merger Agreement, certain stockholders of Mobcrush
and the Company (collectively, the “Voting
Stockholders”) will enter
into voting agreements (collectively, the
“Support
Agreements”) with the
Company and Mobcrush, pursuant to which the Voting Stockholders
have agreed to, among other things, (i) vote in favor of the Merger
Agreement and the transactions contemplated thereby and (ii) be
bound by certain other covenants and agreements related to the
Merger.
The foregoing description of the Support Agreements is subject to
and qualified in its entirety by reference to the full text of the
form of Support Agreement, a copy of which is included as Exhibit
10.1 hereto, and the terms of which are incorporated herein by
reference.
Registration Rights Agreement
At the closing of the Merger, the Company, Mike Wann, and certain
other holders of Mobcrush Preferred Stock (Mike Wann and such
holders of Mobcrush Preferred stock are collectively, the
"Rights
Parties") will enter into a
registration rights agreement (the “Registration Rights
Agreement”) pursuant to
which, among other matters, the Rights Parties will be granted
certain customary mandatory, demand and “piggy-back”
registration rights with respect to their respective shares of
Company Common Stock acquired pursuant to the
Merger.
The foregoing description of the Registration Rights Agreement is
subject to and qualified in its entirety by reference to the full
text of the form of Amended and Restated Registration Rights
Agreement, a copy of which is included as Exhibit 10.2 hereto, and
the terms of which are incorporated by reference.
Item 7.01 Regulation FD Disclosure.
On March 11, 2021, the Company issued a press release announcing
their entry into the Merger Agreement. The press release is
attached hereto as Exhibit 99.1 and incorporated by reference
herein.
The information in Section 7.01 of this Current Report
on Form 8-K, including the information set forth in
Exhibit 99.1, is being furnished and shall not be deemed
“filed” for purposes of Section 18 of the
Securities Exchange Act of 1934, as amended (the
“Exchange
Act”), nor shall Exhibit
99.1 filed herewith be deemed incorporated by reference in any
filing under the Securities Act of 1933, as amended, or the
Exchange Act, except as shall be expressly set forth by specific
reference in such a filing.
Additional Information and Where to Find It
The Company intends to include information regarding the Merger in
a proxy statement that it will file with the Securities and
Exchange Commission (“SEC”), which will be mailed to its shareholders
once definitive. This Current Report on Form 8-K does not contain
all the information that should be considered concerning the Merger
and is not intended to form the basis of any investment decision or
any other decision in respect of the Merger. The Company's
shareholders and other interested persons are advised to read, when
available, the preliminary proxy statement and the amendments
thereto and the definitive proxy statement and other documents
filed in connection with the 2021 Annual Meeting of the
Shareholders of the Company (the "Annual
Meeting"), as these materials
will contain important information about the Company, Mobcrush and
the Merger. When available, the definitive proxy statement and
other relevant materials for the Annual Meeting, including
information regarding the proposed Merger, will be mailed to the
shareholders of the Company as of a record date to be established
for voting at the Annual Meeting. Shareholders of the Company will
also be able to obtain copies of the preliminary proxy statement,
the definitive proxy statement and other documents filed with the
SEC, without charge, once available, at the SEC’s website at
http://www.sec.gov, or by directing a written request to: Super
League Gaming, Inc., 2912 Colorado Ave. Suite #203, Santa Monica,
California 90404.
Participants in the Solicitation
The Company and its directors and executive officers may be deemed
participants in the solicitation of proxies from the Company's
shareholders with respect to the Merger. A list of the names of
those directors and executive officers and a description of their
interests in the Company is contained in the Company’s Annual
Report on Form 10-K for the year ended December 31, 2019, filed on
March 23, 2020, and is available free of charge at the SEC’s
website at www.sec.gov, or by directing a request to Super League
Gaming, Inc., 2912 Colorado Ave., Suite #203, Santa Monica,
California 90404. Additional information regarding the interests of
such participants will be contained in the proxy statement for the
Annual Meeting when available.
Forward-Looking Statements
Certain statements in this Current Report on Form 8-K may be
considered forward-looking statements. Forward-looking statements
generally relate to future events or the Company's future financial
or operating performance. For example, statements about the
expected timing of the completion of the Merger, the benefits of
the Merger, the competitive environment, and the expected future
performance (including future revenue, pro format enterprise value,
and cash balance) and market opportunities of Mobcrush are
forward-looking statements. In some cases, you can identify
forward-looking statements by terminology such as
“may,” “should,” “expect,”
“intend,” “will,” “estimate,”
“anticipate,” “believe,”
“predict,” “potential” or
“continue,” or the negatives of these terms or
variations of them or similar terminology. Such forward-looking
statements are subject to risks, uncertainties, and other factors
which could cause actual results to differ materially from those
expressed or implied by such forward-looking
statements.
These forward-looking statements are based upon estimates and
assumptions that, while considered reasonable by the Company and
its management, are inherently uncertain. Factors that may cause
actual results to differ materially from current expectations
include, but are not limited to: (1) the occurrence of any event,
change or other circumstances that could give rise to the
termination of the Merger Agreement; (2) the outcome of any legal
proceedings that may be instituted against the Company, Mobcrush,
the combined company or others following the announcement of the
Merger; (3) the inability to complete the Merger due to the failure
to obtain approval of the shareholders of the Company or to satisfy
other conditions to closing; (4) changes to the proposed structure
of the Merger that may be required or appropriate as a result of
applicable laws or regulations or as a condition to obtaining
regulatory approval of the Merger; (5) the ability to meet stock
exchange listing standards at or following the consummation of the
Merger; (6) the risk that the Merger disrupts current plans and
operations of the Company as a result of the announcement and
consummation of the Merger; (7) the ability to recognize the
anticipated benefits of the Merger, which may be affected by, among
other things, competition, the ability of the combined company to
grow and manage growth profitably, maintain relationships with
customers and suppliers and retain its management and key
employees; (8) costs related to the Merger; (9) changes in
applicable laws or regulations; (10) the possibility that Mobcrush
or the combined company may be adversely affected by other
economic, business, and/or competitive factors; (11) the limited
operating history of the Company; (12) the Company business may not
successfully expand into other markets; and (14) other risks and
uncertainties set forth in the sections entitled “Risk
Factors” and “Cautionary Note Regarding Forward-Looking
Statements” in the Company's Annual Report on Form 10-K for
the year ended December 31, 2019, filed on March 23, 2020, and
which will be set forth in the Company's definitive proxy statement
to be filed by the Company with the SEC in connection with the 2021
Annual Meeting of Shareholders of the Company.
Nothing in this Current Report on Form 8-K should be regarded as a
representation by any person that the forward-looking statements
set forth herein will be achieved or that any of the contemplated
results of such forward-looking statements will be achieved. You
should not place undue reliance on forward-looking statements,
which speak only as of the date they are made. Except as may be
required by law, the Company undertakes no duty to update these
forward-looking statements.
Item 9.01 Financial Statements and
Exhibits.
(d) Exhibit Index
Exhibit No.
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Description
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Agreement
and Plan of Merger, dated March 9, 2021, by and among Super League
Gaming, Inc., SLG Merger Sub II, Inc., and Mobcrush,
Inc.*
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Form of
Registration Rights Agreement
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Form of
Voting Agreement
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Press
Release issued by Super League Gaming, Inc., dated March 11,
2021
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*Certain
non-material exhibits and schedules to this exhibit have been
omitted in accordance with Regulation S-K Item 601(b)(2). The
registrant hereby undertakes to furnish supplemental copies of the
omitted schedules and exhibits upon request by the
SEC.
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 thereunto duly authorized.
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Super
League Gaming, Inc.
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Date:
March 11, 2021
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By:
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/s/ Clayton Haynes
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Clayton
Haynes
Chief
Financial Officer
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