Purple Innovation Files 8-K on Shareholder Votes & Governance Changes

TL;DR

Purple Innovation (PRPL) filed an 8-K: shareholder votes coming, governance changes afoot.

AI Summary

On October 15, 2024, Purple Innovation, Inc. filed an 8-K report detailing several key events. The company announced the submission of matters to a vote of security holders, indicating upcoming shareholder decisions. Additionally, the filing includes information on material modifications to the rights of security holders and amendments to its articles of incorporation or bylaws, suggesting significant corporate governance changes.

Why It Matters

This filing signals important upcoming decisions for Purple Innovation's shareholders and potential shifts in the company's corporate structure or governance.

Risk Assessment

Risk Level: medium — Filings related to shareholder votes and amendments to corporate governance can introduce uncertainty and impact shareholder rights.

Key Players & Entities

• Purple Innovation, Inc. (company) — Registrant
• October 15, 2024 (date) — Date of earliest event reported
• Delaware (jurisdiction) — State of Incorporation
• 001-37523 (identifier) — SEC File Number
• 47-4078206 (identifier) — IRS Number

FAQ

Key Financial Figures

• $0.0001 — tered Class A Common Stock, par value $0.0001 per share PRPL The NASDAQ Stock Mar
• $238 million — t the tax benefits of our approximately $238 million of net operating loss carryforwards; an

Filing Documents

• ea0217250-8k_purple.htm (8-K) — 41KB
• ea021725001ex4-1_purple.htm (EX-4.1) — 57KB
• ea021725001ex4-2_purple.htm (EX-4.2) — 12KB
• 0001213900-24-088161.txt ( ) — 350KB
• prpl-20241015.xsd (EX-101.SCH) — 4KB
• prpl-20241015_def.xml (EX-101.DEF) — 26KB
• prpl-20241015_lab.xml (EX-101.LAB) — 36KB
• prpl-20241015_pre.xml (EX-101.PRE) — 25KB
• ea0217250-8k_purple_htm.xml (XML) — 6KB

03. MATERIAL MODIFICATION TO RIGHTS

ITEM 3.03. MATERIAL MODIFICATION TO RIGHTS OF SECURITY HOLDERS. The information set forth in Item 5.03 is incorporated into this Item 3.03 by reference. On October 15, 2024, at Purple Innovation, Inc.'s (the "Company") Special Meeting of Stockholders, the Company's stockholders ratified the Company's Stockholder Rights Agreement, as filed with the Securities and Exchange Commission on June 28, 2024 (the "NOL Rights Plan"). Our board of directors previously approved the NOL Rights Plan and recommended it to the stockholders for ratification in order to deter certain acquisitions of shares of the Company's common stock that could result in an "ownership change" as defined under Section 382 of the Internal Revenue Code of 1986, as amended, which could substantially limit our ability to use our current net operating loss carryforwards to reduce our anticipated future tax liability. Generally, an acquisition resulting in beneficial ownership of greater than 4.9% of the Company's common stock (or, for stockholders who already own greater than 4.9%, one-half of one percentage point greater than their current ownership) will trigger the NOL Rights Plan and the preferred share purchase rights attached to each share of the Company's common stock will become exercisable, subjecting any acquirer in excess of the above threshold to significant dilution. The foregoing description of the NOL Rights Plan and preferred share purchase rights does not purport to be complete and is qualified in its entirety by reference to the NOL Rights Plan, which was filed as Exhibit 4.1 to the Company's Current Report filed June 28, 2024.

03. AMENDMENTS TO ARTICLES OF INCORPORATION

ITEM 5.03. AMENDMENTS TO ARTICLES OF INCORPORATION OR BYLAWS; CHANGE IN FISCAL YEAR. On October 15, 2024, the Company filed a Certificate of Amendment to its Second Amended and Restated Certificate of Incorporation with the Secretary of State of the State of Delaware (the "Certificate of Amendment") after, on October 15, 2024, the Company's stockholders approved an amendment to the Company's Certificate of Incorporation (an "NOL Charter Amendment") at the Company's Special Meeting of Stockholders. The NOL Charter Amendment restricts certain transfers of the Company's common stock to protect the tax benefits of the Company's net operating loss carryforwards, adding an additional layer of protection of the Company's NOLs, until June 30, 2025. The NOL Charter Amendment voids any transfer of the Company's common stock that results in a stockholder acquiring beyond a 4.9% ownership percentage threshold (or, if a stockholder has beneficial ownership of in excess of 4.9%, then the ownership percentage that is one-half of one percentage point greater than their current beneficial ownership percentage). In the event of a prohibited transfer, the NOL Charter Amendment requires the transferee to transfer any shares in excess of the 4.9% threshold (or higher threshold if the stockholder has beneficial ownership of in excess of 4.9%) (including any dividends or distributions paid in respect to such excess shares) to the Company's transfer agent, who is then required to sell such excess shares in an arm's-length transaction that would not constitute a violation pursuant to the NOL Charter Amendment. Additionally, the NOL Charter Amendment contains a provision that will hold a stockholder liable, to the fullest extent of the law, for any intentional violation of the NOL Charter Amendment. A copy of the Certificate of Amendment is filed as Exhibit 4.1 to this Current Report and is incorporated herein by reference. As of the Special Meeting of Stockholders on October 15, 2024, t

07. SUBMISSION OF MATTERS TO A VOTE

ITEM 5.07. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS On October 15, 2024, the following proposals were approved by the Company's stockholders at a Special Meeting: Amendment to the Company's Second Amended and Restated Certificate of Incorporation, to prohibit certain acquisitions of shares of our common stock to protect the tax benefits of our approximately $238 million of net operating loss carryforwards; and Ratification of the Company's NOL Rights Plan to deter certain acquisitions of shares of our common stock to protect the tax benefits of our approximately $238 million of net operating loss carryforwards; and For Against Abstain Broker Non-Votes Approval of the Amendment to the Second Amended and Restated Certificate of Incorporation 71,911,076 6,090,037 113,100 0 For Against Abstain Broker Non-Votes Ratification of the NOL Rights Plan 71,896,005 6,105,166 113,042 0

01. FINANCIAL STATEMENTS AND EXHIBITS

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS (d) Exhibits. The following exhibits are filed herewith: Exhibit No. Description 4.1 Certificate of Amendment to the Second Amended and Restated Certificate of Incorporation 4.2 Form of Class A Common Stock certificate 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) 2 SIGNATURE 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 hereunto duly authorized. Dated: October 16, 2024 PURPLE INNOVATION, INC. By: /s/ Todd Vogensen Todd Vogensen Chief Financial Officer 3