Actua Corporation (ACTA)

FORM 8-K | Current report
Jan. 19, 2018 9:40 AM
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About: Actua Corporation (ACTA)View as PDF
Actua Corp (Form: 8-K, Received: 01/19/2018 09:41:32)

 

 

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of earliest event reported: January 18, 2018

 

 

Actua Corporation

(Exact name of registrant as specified in charter)

 

 

 

Delaware   001-16249   23-2996071
(State of Incorporation)  

(Commission

File Number)

 

(I.R.S. Employer

Identification No.)

555 East Lancaster Avenue, Suite 640, Radnor, PA 19087

(Address of Principal Executive Offices)     (Zip Code)

(610) 727-6900

(Registrant’s telephone number, including area code)

 

 

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.   ☐

 

 

 


Item 8.01. Other Events.

On January 18, 2018, the Board of Directors (the “ Board ”) of Actua Corporation (“ Actua ”) approved a Plan of Liquidation (the “ Plan ”) to commence an orderly liquidation and wind-up of Actua (the “ Dissolution ”), including the monetization of Actua’s remaining minority holdings and other assets. Actua intends to hold a special meeting of its stockholders in the first half of 2018 to approve the Plan, which is contingent on Actua stockholder approval, and will file a proxy statement in advance of that meeting containing further information regarding, among other things, the Plan and the Dissolution.

In furtherance of the Dissolution and in accordance with the Plan, the Board authorized a special distribution payable on or about February 1, 2018 to Actua’s stockholders of record as of the close of business on January 29, 2018, in an amount equal to $14.89 per share, or approximately $476 million in the aggregate (the “ Distribution ”). The Distribution represents a substantial portion of the net proceeds of the previously announced sales of Actua’s interests in VelocityEHS Holdings, Inc. and BOLT Solutions Inc. (“ Bolt ”) and the sale Folio Dynamics Holdings, Inc. (“ FolioDynamix ”).

Following the Distribution, Actua intends to significantly reduce its operating costs (through, among other things, (1) the delisting of Actua’s common stock from The NASDAQ Stock Market LLC (the “ Delisting ”), which is expected to occur as soon as practicable following the Distribution, (2) a reduction of the number of Actua directors from nine to three following the Delisting, and (3) a significant reduction in Actua personnel in the second quarter of 2018) and to focus on opportunities to monetize its remaining minority holdings and other assets (including any future proceeds received from the FolioDynamix sale and the previously disclosed potential secondary sale of Bolt).

On January 18, 2018, the Board adopted and approved an amendment and restatement of Actua’s Third Amended and Restated Non-Management Director Compensation Plan in the form set forth as Exhibit 10.1 hereto (such amendment and restatement, the “ Amended Director Plan ”) and terminated Actua’s Amended and Restated Director Deferred Stock Unit Program. Among other things, the Amended Director Plan reduces the fees payable to Actua’s non-management directors following the anticipated Delisting and makes those fees payable in cash. The foregoing description contains only a summary of certain terms of the Amended Director Plan and is qualified in its entirety by reference to the full text of the Amended Director Plan, which is attached hereto as Exhibit 10.1 and is incorporated herein by reference.

As previously disclosed, Actua’s goal is to sell its minority holdings over a 12- to 18-month period and to distribute in one or more additional cash distributions the net proceeds from those sales, along with any other remaining cash assets (subject to expenses and appropriate reserves), to its stockholders.

 

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

The following exhibits are filed herewith:

 

Exhibit
    No.

  

Description

10.1    Actua Corporation Fourth Amended and Restated Non-Management Director Compensation Plan


Legal Notice Regarding Forward-Looking Statements

This Form 8-K contains certain forward-looking statements within the meaning of Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding possible or assumed future results of operations of Actua, the adoption of the Plan, the expected timing of the Dissolution and the Distribution and related matters. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “continue” or the negative of such terms or other similar expressions. You should, therefore, carefully read and consider statements that contain these words or expressions, as such forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those indicated in such forward-looking statements. There are no guarantees that Actua will be able to successfully complete the implementation of the Plan or that there will be any specific amount of reserve funds (or any at all) available for future distribution. Actua’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016 and Quarterly Reports on Form 10-Q for the fiscal quarters ended March 31, 2017, June 30, 2017, and September 30, 2017, respectively, each as filed with the SEC, contain and identify important factors that could cause the actual results to differ materially from those contained in the forward-looking statements. Actua assumes no obligation to update any forward-looking statement contained in this Form 8-K.


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, thereunto duly authorized.

 

        ACTUA CORPORATION
Date: January 19, 2018     By:  

/s/ Suzanne L. Niemeyer

    Name:   Suzanne L. Niemeyer
    Title:   Managing Director, General Counsel and Secretary

Exhibit 10.1

ACTUA CORPORATION

Fourth Amended and Restated

Non-Management Director Compensation Plan

Effective as of January 1, 2018, the Board of Directors (“ Board ”) of Actua Corporation (the “ Company ”) hereby adopts this Fourth Amended and Restated Non-Management Director Compensation Plan (this “ Plan ”). This Plan amends and restates in its entirety the text of the Company’s Third Amended and Restated Non-Management Director Compensation Plan, dated as of June 17, 2016.

The Board shall administer this Plan and may delegate such administration as it deems appropriate.

 

1. Board/Committee/Lead Independent Director Retainer Fees

 

(a) Each non-management director shall, from January 1, 2018 until the earlier of (x) the date that the Company’s common stock is no longer listed on a national securities exchange and (y) the date that such director’s service on the Board is terminated (either such date being the “ Reduction Date ”), be entitled to receive cash retainer fees in respect of such director’s service on the Board and each standing committee of the Board on which such director serves at the applicable annual rate(s) set forth on Exhibit A hereto (the aggregate amount of such rate(s) for each director being such director’s “ Annual Retainer Rate ”). As promptly as practicable following the Reduction Date, the Company shall pay to each non-management director an amount of cash equal to the product obtained by multiplying (i) such director’s Annual Retainer Rate by (ii) the quotient obtained by dividing (A) the number of days between December 31, 2017 and the Reduction Date by (B) 365.

 

(b) Each non-management director shall, from the date following the Reduction Date until the date that such director’s service on the Board is terminated, be entitled to receive cash retainer fees in respect of such director’s service on the Board (or any committee of the Board) at the applicable quarterly rate of $24,000 (such rate being the “ Quarterly Retainer Rate ”). As promptly as practicable following the end of each calendar quarter (beginning with the calendar quarter in which the Reduction Date occurs), the Company shall pay to each non-management director an amount of cash equal to the product obtained by multiplying (i) the Quarterly Retainer Rate by (ii) the quotient obtained by dividing (A) the number of days during such calendar quarter that such director served on the Board (that is, excluding any days (x) through and including the Reduction Date and (y) from and after the date that such director’s service on the Board is terminated, as applicable) by (B) the total number of days in such calendar quarter.

 

2. Expenses

The Company shall reimburse non-management directors for reasonable, documented out-of-pocket expenses incurred by them related to their attendance at Board meetings and otherwise incurred by them in service to the Company.


Exhibit A

 

Applicable Annual Retainer Rate

  

Payable For Service As

$60,000

  

Director

$25,000

  

Lead Independent Director

$25,000

  

Audit Committee Chair

$20,000

  

Compensation Committee Chair

$15,000

  

Nominating and Governance Committee Chair

$13,500

  

Audit Committee (Non-Chair)

$11,000

  

Compensation Committee (Non-Chair)

$  8,500

  

Nominating and Governance Committee (Non-Chair)