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CUSIP No. 31187R 110 | | 13D | | Page 11 of 18 Pages |
Item 4. Purpose of Transaction.
The Business Combination Transaction
On February 4, 2022, ENNV consummated the Business Combination pursuant to the Agreement and Plan of Merger, dated as of July 18, 2021, by and among ENNV, ENNV Merger Sub, Inc. and Legacy Fast Radius, as amended on December 26, 2021 and January 30, 2022 (as so amended, the “Merger Agreement”). Upon consummation of the Business Combination, the Founder Shares were automatically converted into shares of Common Stock and the Private Placement Warrants were converted into Issuer Private Warrants, in each case, on a one-for-one basis for no additional consideration.
The Subscription Agreement
On July 18, 2021, ENNV Holdings entered into subscription agreement (the “Subscription Agreement”) with ENNV, pursuant to which ENNV Holdings agreed to subscribe for and purchase, and ENNV agreed to issue and sell, to ENNV Holdings an aggregate of 1,000,000 shares of Common Stock (the “Subscribed Shares”) for a purchase price of $10.00 per share, or an aggregate of $10 million, in a private placement (the “PIPE Investment”). On October 20, 2021, ENNV and ENNV Holdings entered into joinder, assignment and assumption agreements with each of Fund A and Fund B, pursuant to which ENNV Holdings assigned Fund A and Fund B its right under the Subscription Agreement to subscribe for and purchase 731,340 Subscribed Shares and 68,660 Subscribed Shares, respectively. On February 4, 2022, ENNV Holdings, Fund A and Fund B consummated the purchase of 200,000 Subscribed Shares, 731,340 Subscribed Shares and 68,660 Subscribed Shares, respectively, in each case for a purchase price of $10.00 per share.
The Registration Rights Agreement
On July 18, 2021, ENNV Holdings entered into an Amended and Restated Registration Rights Agreement (the “Registration Rights Agreement”) with ENNV, Legacy Fast Radius and certain stockholders of ENNV and Legacy Fast Radius named therein, pursuant to which, ENNV agreed to file a shelf registration statement with respect to the registrable securities thereunder within 30 days of the closing of the Business Combination. Following the Business Combination, the Issuer is required to maintain a registration statement that is continuously effective and to cause the registration statement to regain effectiveness in the event that it ceases to be effective. At any time that the registration statement is effective, any holder signatory to the Registration Rights Agreement may request to sell all or a portion of its securities that are registrable in an underwritten offering pursuant to the registration statement. In addition, the holders have certain “piggyback” registration rights with respect to registrations initiated by the Issuer. The Issuer will bear the expenses incurred in connection with the filing of any registration statements pursuant to the Registration Rights Agreement.
Pursuant to the Registration Rights Agreement, ENNV Holdings, the Issuer’s directors and officers and certain stockholders of Legacy Fast Radius have, subject to limited exceptions, agreed to a lock-up on their respective shares of Common Stock following consummation of the Business Combination, pursuant to which such parties will not transfer shares of Common Stock