Key Highlights

  • The company amended its payment agreement, converting a deferred payment into three installments.
  • The revised terms include a first installment of $985,000, a second installment of $1,000,000, and a final installment of $1,015,000, with interest accruing at a rate of 1.50% on a timely basis for late payments.
  • Dagley agreed to the cancellation of 278,000 shares.

Fathom Holdings has restructured its payment terms, converting a single deferred payment into a three-part installment plan. The amendment follows the original agreement that required a payment of $3.0 million from the purchaser.

Payment Terms Revised

The original agreement required a payment due in a specific timeframe. Under the new terms, this amount is now split into three installments: a first installment of $985,000, a second installment of $1,000,000, and a final installment of $1,015,000. Late payments accrue interest at a rate of 1.50% on a timely basis.

Stock Cancellation Included

As part of the amendment, Dagley agreed to the cancellation of 278,000 shares. The cancellation was executed through formal documentation submitted alongside the revised agreement.

Client Referral Obligations

The company must continue referring clients to Dagley through a specific timeframe. The obligation remains contingent on the company maintaining service quality.

Mutual Releases Finalized

The parties exchanged mutual releases of claims under the amended agreement. The releases cover all prior disputes related to the original agreement and subsequent sale. Legal details were filed with the SEC as part of the company’s regulatory disclosure, as stated in Section 7.4, with a copy.

Background of the Deal

The company originally acquired an insurance agency through a merger agreement. The subsequent sale marked a divestiture of the subsidiary, though the company retained certain post-sale obligations. The latest amendment formalizes payment timing and operational commitments, as outlined in Section 2.2.

Enforcement Provisions

The amended agreement includes penalties for non-compliance. If the purchaser fails to meet payment deadlines, the company can pursue legal action to recover amounts due.

Regulatory Filing

The amendment was filed with the SEC as part of the company’s ongoing disclosure requirements. Investors can access the full agreement through the company’s public filings.

FAQs

This article is for informational purposes only and does not constitute financial advice. Please consult a licensed financial adviser before making investment decisions.