Concurrently with closing of the offering, the strategic investor and Fox River entered into an investor rights agreement that provides, among other things, the strategic investor with certain rights in the event it maintains minimum ownership thresholds in the company, including: (i) the right to participate in equity financings; (ii) top-up rights in the event of dilutive issuances; and (iii) the right (which the strategic investor has no present intention of exercising) to nominate one person to the company’s Board of Directors.
The shares issued to the strategic investor pursuant to the offering are subject to a four month and one day hold period, in accordance with applicable securities laws.
