The Offer is conditioned upon the satisfaction or waiver of a number of other important conditions, including, among others: (i) there being validly tendered in the Offer and not properly withdrawn that number of Shares (not including any Shares tendered pursuant to guaranteed delivery procedures unless and until such Shares are actually received) that, together with any Shares then owned by the Parent Entities, or any of their respective subsidiaries, would represent at least a majority of all of the Shares then outstanding, (ii) the Merger Agreement not having been terminated in accordance with its terms, (iii) the Consent Agreement between Black Box and its lenders not having been terminated or having failed to become effective. The Offer is also subject to other conditions described in the Offer to Purchase.
The Black Box board of directors, at a meeting duly called and held, unanimously (i) determined that the Offer, the Merger and the other transactions contemplated by the Merger Agreement (the “Transactions”) are fair to and in the best interests of Black Box and its stockholders, (ii) approved and declared advisable the execution, delivery and performance of the Merger Agreement, the performance by Black Box of its covenants and agreements contained therein and the consummation of the Transactions upon the terms and conditions contained in the Merger Agreement, and (iii) resolved to recommend acceptance of the Offer by Black Box’s stockholders upon the terms and subject to the conditions set forth in the Merger Agreement.
Subject to the provisions of the Merger Agreement, Purchaser expressly reserves the right (but is not obligated), at any time or from time to time, to waive or otherwise modify or amend the terms and conditions of the Offer in any respect. Purchaser has agreed in the Merger Agreement that it will not, without the prior written consent of Black Box, waive or modify certain conditions as described in Section 1—“Terms of the Offer” of the Offer to Purchase. Purchaser may be required (or, in some cases, may have the right) under the Merger Agreement to extend the Offer (i) for the minimum period required by any applicable law, regulation, interpretation or position of the Securities and Exchange Commission (the “SEC”), the NASDAQ Capital Market or their respective staff, or (ii) for one or more successive periods of up to ten business days per extension (or such longer period as Purchaser and Black Box may mutually agree), if, at the time the Offer is scheduled to expire, any of the conditions to the Offer have not been satisfied or waived, until such time as all conditions to the Offer are satisfied or waived, except that without Black Box’s written consent, Purchaser may not extend the Offer beyond February 8, 2019.
Subject to the satisfaction or waiver of the conditions to the Merger and the Offer, after completion of the Offer, Purchaser will complete the Merger through the procedures available under Section 251(h) of the DGCL.
In all cases, payment for any Shares tendered and accepted for payment pursuant to the Offer will be made only after timely receipt by American Stock Transfer & Trust Co., LLC, the paying agent and depositary for the Offer (the “Depositary”), of (i) certificates representing such Shares, an indication in the Letter of Transmittal of the tender of Direct Registration Book-Entry Shares or confirmation of the book-entry transfer of such Shares into the Depositary’s account at The Depository Trust Company pursuant to the procedures set forth in of the Offer to Purchase, (ii) the Letter of Transmittal, properly completed and duly executed in accordance with the instructions of the Letter of Transmittal, with any required signature guarantees (or, in the case of a book-entry transfer, an Agent’s Message (as defined in the Offer to Purchase) in lieu of the Letter of Transmittal), and (iii) any other documents required by the Letter of Transmittal.
For purposes of the Offer, Purchaser will be deemed to have accepted for payment and thereby purchased Shares validly tendered and not properly withdrawn on or prior to the Expiration Time as, if and when Purchaser gives oral or written notice to the Depositary of its acceptance for payment of such Shares pursuant to the Offer. Upon the terms and subject to the conditions of the Offer, payment for Shares accepted for payment pursuant to the Offer will be made with the Depositary, which will act as paying agent for purposes of receiving payments from Purchaser and transmitting such payments to the tendering stockholders. Under no circumstances will interest be paid on the Offer Price for Shares, regardless of any extension of the Offer or any delay in payment for Shares.
Shares validly tendered pursuant to the Offer may be properly withdrawn at any time on or prior to the Expiration Time, and, unless previously accepted for payment by Purchaser pursuant to the Offer, may also be properly withdrawn at any time after January 20, 2019, which is the 60th day after the date of the commencement of the Offer.
The information required to be disclosed by Rule14d-6(d)(1) under the Securities Exchange Act of 1934, as amended is contained in the Offer to Purchase and is incorporated herein by reference.
Black Box has provided Purchaser with Black Box’s list of stockholders and security position listings for the purpose of disseminating the Offer to Purchase, the Letter of Transmittal and other related materials to holders of Shares. The Offer to Purchase, Letter of Transmittal and other related materials will be mailed to record holders of Shares whose names appear on the list of stockholders of Black Box and will be furnished to brokers, dealers, commercial banks, trust companies and other nominees whose names appear on a list of stockholders or, if applicable, who are listed as participants in a clearing agency’s security position listing, for subsequent transmittal to beneficial owners of Shares.
The receipt of cash for Shares pursuant to the Offer or the Merger will be a taxable transaction for U.S. federal income tax purposes. Holders of Shares are urged to consult with their own tax advisors as to the particular tax consequences of the Offer and the Merger to them.