Correspondence 0001104659-24-098042 from Sharecare, Inc. (CIK 0001816233)
Sharecare, Inc. (CIK 0001816233)
Date: Sept. 9, 2024 · CIK: 0001816233 · Accession: 0001104659-24-098042
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File numbers found in text: 001-39535
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MARTIN
LIPTON
HERBERT
M. WACHTELL
EDWARD
D. HERLIHY
DANIEL
A. NEFF
STEVEN
A. ROSENBLUM
JOHN
F. SAVARESE
SCOTT
K. CHARLES
JODI
J. SCHWARTZ
ADAM
O. EMMERICH
RALPH
M. LEVENE
RICHARD
G. MASON
ROBIN
PANOVKA
DAVID
A. KATZ
ILENE
KNABLE GOTTS
ANDREW
J. NUSSBAUM
RACHELLE
SILVERBERG
STEVEN
A. COHEN
DEBORAH
L. PAUL
DAVID
C. KARP
RICHARD
K. KIM
JOSHUA
R. CAMMAKER
MARK
GORDON
JEANNEMARIE
O’BRIEN
WAYNE
M. CARLIN
STEPHEN
R. DiPRIMA
NICHOLAS
G. DEMMO
IGOR
KIRMAN
JONATHAN
M. MOSES
T.
EIKO STANGE
WILLIAM
SAVITT
GREGORY
E. OSTLING
DAVID
B. ANDERS
ADAM
J. SHAPIRO
NELSON
O. FITTS
JOSHUA
M. HOLMES
DAVID
E. SHAPIRO
DAMIAN
G. DIDDEN
IAN
BOCZKO
MATTHEW
M. GUEST
DAVID
E. KAHAN
DAVID
K. LAM
BENJAMIN
M. ROTH
JOSHUA
A. FELTMAN
ELAINE
P. GOLIN
51
WEST 52ND STREET
NEW
YORK, N.Y. 10019-6150
TELEPHONE:
(212) 403-1000
FACSIMILE:
(212) 403-2000
EMIL
A. KLEINHAUS
KARESSA
L. CAIN
RONALD
C. CHEN
BRADLEY
R. WILSON
GRAHAM
W. MELI
GREGORY
E. PESSIN
CARRIE
M. REILLY
MARK
F. VEBLEN
SARAH
K. EDDY
VICTOR
GOLDFELD
RANDALL
W. JACKSON
BRANDON
C. PRICE
KEVIN
S. SCHWARTZ
MICHAEL
S. BENN
ALISON
Z. PREISS
TIJANA
J. DVORNIC
JENNA
E. LEVINE
RYAN
A. McLEOD
ANITHA
REDDY
JOHN
L. ROBINSON
JOHN
R. SOBOLEWSKI
STEVEN
WINTER
EMILY
D. JOHNSON
JACOB
A. KLING
RAAJ
S. NARAYAN
VIKTOR
SAPEZHNIKOV
MICHAEL
J. SCHOBEL
ELINA
TETELBAUM
ERICA
E. AHO
LAUREN
M. KOFKE
ZACHARY
S. PODOLSKY
RACHEL
B. REISBERG
MARK
A. STAGLIANO
CYNTHIA
FERNANDEZ LUMERMANN
CHRISTINA
C. MA
NOAH
B. YAVITZ
BENJAMIN
S. ARFA
NATHANIEL
D. CULLERTON
ERIC
M. FEINSTEIN
ADAM
L. GOODMAN
STEVEN
R. GREEN
MENG
LU
GEORGE
A. KATZ (1965–1989)
JAMES
H. FOGELSON (1967–1991)
LEONARD
M. ROSEN (1965–2014)
OF
COUNSEL
ANDREW
R. BROWNSTEIN
MICHAEL
H. BYOWITZ
KENNETH
B. FORREST
BEN
M. GERMANA
SELWYN
B. GOLDBERG
PETER
C. HEIN
JB
KELLY
JOSEPH
D. LARSON
LAWRENCE
S. MAKOW
PHILIP
MINDLIN
THEODORE
N. MIRVIS
DAVID
S. NEILL
TREVOR
S. NORWITZ
ERIC
S. ROBINSON
ERIC
M. ROSOF
MICHAEL
J. SEGAL
WON
S. SHIN
DAVID
M. SILK
ELLIOTT
V. STEIN
LEO
E. STRINE, JR.*
PAUL
VIZCARRONDO, JR.
JEFFREY
M. WINTNER
AMY
R. WOLF
MARC
WOLINSKY
*
ADMITTED IN DELAWARE
COUNSEL
DAVID
M. ADLERSTEIN
SUMITA
AHUJA
FRANCO
CASTELLI
ANDREW
J.H. CHEUNG
PAMELA
EHRENKRANZ
ALINE
R. FLODR
KATHRYN
GETTLES-ATWA
LEDINA
GOCAJ
ADAM
M. GOGOLAK
ANGELA
K. HERRING
MICHAEL
W. HOLT
DONGHWA
KIM
MARK
A. KOENIG
CARMEN
X.W. LU
J.
AUSTIN LYONS
ALICIA
C. McCARTHY
JUSTIN
R. ORR
NEIL
M. SNYDER
JEFFREY
A. WATIKER
September 9, 2024
Via EDGAR
Blake Grady
Division of Corporation Finance
Office of Mergers & Acquisitions
United States Securities and Exchange
Commission
100 F Street, NE
Washington, D.C. 20549
Re: Sharecare, Inc.
Schedule 13E-3 filed August 5,
2024 by Sharecare, Inc. et al.
File No. 005-91710
Preliminary Proxy Statement filed
August 5, 2024 by Sharecare, Inc.
File No. 001-39535
Dear Mr. Grady:
On behalf of Sharecare, Inc. (the “Company”),
set forth below are the Company’s responses to the letter, dated August 29, 2024, containing the comments of the staff of
the Division of Corporation Finance (the “Staff”) of the U.S. Securities and Exchange Commission (the “SEC”)
with respect to the above referenced Schedule 13E-3 filed by the Company on August 5, 2024 (the “Schedule 13E-3”)
and the Preliminary Proxy Statement filed by the Company on August 5, 2024 (the “Proxy Statement”).
September 9, 2024
Page 2
For your convenience, the Staff’s comments
are set forth in bold and numbered to correspond to the numbers in the Staff’s letter, followed by the response on behalf of the
Company. Unless otherwise specified, page references below refer to page numbers in the Proxy Statement.
In addition, the Company has revised each of the
Schedule 13E-3 and the Proxy Statement in response to the Staff’s comments and is filing an amendment to the Schedule 13E-3 and
a revised Preliminary Proxy Statement (the “Revised Proxy Statement”) concurrently with this letter, which reflect
these revisions. Unless otherwise indicated, capitalized terms used herein have the meanings ascribed to them in the Revised Proxy Statement.
General
1. We note your disclosure on page 68 that “[f]ollowing
completion of the Merger, there will be no further market for the shares of Sharecare Common
Stock and the public warrants and, as promptly as practicable following the Effective Time
and in compliance with applicable law, Sharecare Common Stock and Sharecare’s public
warrants will be delisted from Nasdaq and deregistered under the Exchange Act.” In
this respect, we note that the Schedule 13E-3 was filed solely with respect to Sharecare
Common Stock. Please advise why Rule 13e-3 is applicable with respect to Sharecare Common
Stock but not with respect to the public warrants. Alternatively, please revise.
We respectfully submit to the Staff that Rule 13e-3
is not applicable with respect to the Sharecare public warrants because there is no Rule 13e-3 transaction occurring with respect
to Sharecare public warrants at the time of the Merger. In addition, Rule 13e-3(g)(4) would exempt the application of Rule 13e-3
to the Sharecare public warrants. Specifically, the Merger affects Sharecare public warrants solely through the provisions set forth
in the instrument governing the class of security, the Warrant Agreement, as further described below, and the holder of Sharecare public
warrants makes no new investment decision with respect to the Merger.
September 9, 2024
Page 3
Rule 13e-3 does not apply to redemptions, calls or
similar purchases of an equity security by an issuer pursuant to specific provisions of the security’s governing document pursuant
to Rule 13e-3(g)(4). Under Section 4.4 of the Warrant Agreement, upon a merger of Sharecare with or into another entity or
a tender, exchange or redemption offer, each outstanding Sharecare public warrant will, automatically and without any required action
on the part of the holder, cease to represent a Sharecare public warrant exercisable for Sharecare Common Stock and will instead represent
only the right to receive an amount of cash equal to the Merger Consideration that a Sharecare public warrant holder would have received
if such Sharecare public warrant was exercised immediately prior to such merger, tender, exchange or redemption offer made to Sharecare
Common Stock holders. Therefore, as a result of Section 4.4 of the Warrant Agreement, the Sharecare public warrant is effectively
redeemed, automatically and without any required action on the part of the holder, in connection with the Merger for a right to receive
an amount in cash calculated in accordance with Warrant Agreement. Accordingly, we respectfully submit to the Staff that the exception
contained in Rule 13e-3(g)(4) is available with respect to the Sharecare public warrants and Rule 13e-3 is not applicable
with respect to the Sharecare public warrants. We have added disclosure on pages 6-7, 72, and 103-104 of the Revised Proxy Statement
describing the treatment of the public warrants pursuant to the Warrant Agreement.
2. Please correct the cross references in the Schedule 13E-3 to
a section of the proxy statement titled “Purposes and Reasons of the Purchaser Filing
Parties,” which section is not in the proxy statement.
We have corrected the cross references in the Schedule
13E-3 to “Purposes and Reasons of Parent and the Altaris Filing Parties” in response to the Staff’s comment.
3. All filers of the Schedule 13E-3 must sign the Schedule 13E-3.
Please revise accordingly.
We have added signatures to the Schedule 13E-3 for all
filers in response to the Staff’s comment.
4. Please revise the form of proxy to clearly mark it as a “Preliminary
Copy.” Refer to Rule 14a-6(e)(1).
We have revised the form of proxy to clearly mark it as
a Preliminary Proxy Card in response to the Staff’s comment.
5. Houlihan Lokey’s opinion states that the “Opinion
is furnished for the use of the Committee (in its capacity as such) and, at the request of
the Committee, the Board (in its capacity as such) in connection with their evaluation of
the Merger and may not be used for any other purpose without our prior written consent.”
Please disclose in the Schedule 13E-3, if true, that Houlihan Lokey has consented to use
of its materials in the filing.
We have added disclosure on page 46 of the Revised
Proxy Statement stating that Houlihan Lokey has consented to the use of its opinion in the filing in response to the Staff’s comment.
Questions and Answers, page 15
September 9, 202
Page 4
6. Disclosure on page 17 states that “[w]ith respect
to the Compensation Proposal and the Adjournment Proposal, if you abstain from voting …
such abstention will not have any effect on the outcome of the vote on the Compensation Proposal
or the Adjournment Proposal (assuming a quorum is present).” However, disclosure on
page 95 states that “[i]f a stockholder abstains from voting on the … Compensation
Proposal or Adjournment Proposal that abstention will have the same effect as if the stockholder
voted ‘AGAINST’ such proposal.” Please revise to address this apparent
discrepancy.
We have revised the disclosure on page 97 of the Revised
Proxy Statement in response to the Staff’s comment to state that abstention from voting on the Compensation Proposal or the Adjournment
proposal will not have any effect on the outcome of the vote on such proposals, consistent with the disclosure on page 17 (page 18
of the Revised Proxy Statement).
Position of the Altaris Filing Parties and Parent Entities as
to the Fairness of the Merger, page 63
7. Please revise the sentence in this section which states that
“[u]nder a possible interpretation of the SEC rules governing ‘going private’
transactions, each Altaris Filing Party and Parent Entity may be deemed to be an affiliate
of Sharecare...” Similar disclosure appears on page 67. Given the filing persons’
determination to file a Schedule 13E-3, it is inappropriate to disclaim the underlying conclusions
reached by each such filing person in making the filing.
We have revised the disclosure on pages 64-65 of the
Revised Proxy Statement to state that “Under the SEC rules governing ‘going private’ transactions, each Altaris
Filing Party and Parent Entity is required to express its belief as to the fairness of the proposed Merger…” and the disclosure
on page 68 of the Revised Proxy Statement to state that “Under the SEC rules governing ‘going private’ transactions,
each of the Rollover Filing Parties is required to express its belief as to the fairness of the proposed Merger…” in response
to the Staff’s comment.
Purposes and Reasons of Parent and the Altaris Filing Parties,
page 69
8. Refer to the disclosure on page 69 that “Parent and
the Altaris Filing Parties determined to undertake the Merger at this time because Parent
and the Altaris Filing Parties believe that, as a private company, Sharecare will be able
to improve its ability to execute initiatives that over time will create additional enterprise
value for Sharecare.” Please revise to specify the Parent and the Altaris Filing Parties’
reasons for undertaking the transaction at this time, as opposed to at any other time. Refer
to Item 1013(c) of Regulation M-A.
We have revised the disclosure on page 70 of the Revised
Proxy Statement to specify the reasons of Parent and the Altaris Filing Parties for undertaking the transaction at this time.
September 9, 2024
Page 5
Financing of the Merger, page 88
9. We note your disclosure on page 88 that “Parent and
Merger Sub have obtained committed financing consisting of equity financing to be provided
by the Equity Investors pursuant to the terms and conditions of the Equity Commitment Letter.”
In this respect, we note that the Equity Investors are themselves filers of the Schedule
13E-3. Provide the disclosure required by Item 1007(a) of Regulation M-A with respect
to such filers.
We have revised the disclosure on page 89 of the Revised
Proxy Statement in response to the Staff’s comment.
Selected Historical Consolidated Financial Data, page 124
10. Consolidated financial data provided in response to Item 1010(c) of
Regulation M-A must be provided for the same periods specified in paragraphs (a) and
(b) of Item 1010. Please revise the Summary Consolidated Statements of Operations and
Comprehensive Income (Loss) on page 125 accordingly.
We have revised the Summary Consolidated Statements of
Operations and Comprehensive Income (Loss) in response to the Staff’s comment to include