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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): March 10, 2025

 

FATHOM HOLDINGS INC.

(Exact name of registrant as specified in its charter)

 

 

 

  North Carolina  
  (State or other jurisdiction of incorporation)  
     
001-39412   82-1518164
(Commission File Number)   (IRS Employer Identification No.)

 

2000 Regency Parkway Drive, Suite 300, Cary, North Carolina 27518

(Address of principal executive offices) (Zip Code)

 

Registrant's Telephone Number, Including Area Code: (888) 455-6040

 

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))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, No Par Value FTHM Nasdaq Capital Market

 

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 x

 

 

 

 


 

Item 1.01. Entry into a Material Definitive Agreement.

 

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. x On March 10, 2025, Fathom Holdings Inc. (the “Company”) entered into a securities purchase agreement (the “Purchase Agreement”) with certain investors (the “Investors”) and Scott Flanders and Stephen Murray, who are members of the Company’s Board of Directors (the “Directors”, together with the Investors, the “Purchasers”) pursuant to which the Company agreed to issue and sell an aggregate of 4,338,003 shares (the “Shares”) of the Company’s common stock, no par value (“Common Stock”), consisting of (i) 3,505,364 shares of Common Stock to the Investors at a purchase price of $0.6847 per share, and (ii) 832,639 shares of Common Stock to the Directors at a purchase price of $0.7206 per share, the consolidated closing bid price of the Company’s common stock on the Nasdaq Capital Market on March 10, 2025 (the “Offering”). The Offering was a registered direct offering by the Company to the Investors and there was no placement agent or underwriter in the Offering. The gross proceeds to the Company from the Offering were approximately $3.0 million before deducting related offering expenses.

 

The Shares were offered by the Company pursuant to a registration statement on Form S-3 (File No. 333-276318), which was filed with the Securities and Exchange Commission (the “SEC”) on December 29, 2023 and was declared effective by the SEC on January 11, 2024 (the “Registration Statement”) and any applicable additional prospectus supplements related to the Offering that form a part of the Registration Statement.

 

The Purchase Agreement contains customary representations, warranties, and agreement by the Company, customary conditions to closing and termination provisions, and customary obligations of the Purchasers.

 

Pursuant to the Purchase Agreement, the Company agreed to appoint Adam Rothstein to the Company’s Board of Directors (the “Board”), subject to approval by the Board upon the recommendation of the Nominating and Corporate Governance Committee of the Board, to serve as a director until the Company’s 2025 annual meeting of shareholders, or until his successor is duly elected and qualified, which approval shall not be unreasonably withheld and shall be effective upon closing. In connection with the Mr. Rothstein’s appointment to the Board, the Company will also appoint the Director Designee to the Audit Committee, the Nominating and Corporate Governance Committee and to the newly formed Strategy and Innovation Committee of the Board of Directors.

 

The Offering is expected to close on March 14, 2025.

 

The foregoing description of the Purchase Agreement is not complete and is qualified in its entirety by reference to the full text of the Purchase Agreement, a copy of which is filed as Exhibit 10.1 hereto and incorporated herein by reference.

 

The opinion of Wyrick Robbins Yates & Ponton LLP, the Company’s legal counsel, regarding the validity of the shares of common stock to be offered and sold under the Purchase Agreement is filed as Exhibit 5.1 hereto.

 

Item 8.01 Other Events.

 

On March 11, 2025, the Company issued a press release announcing the Offering. A copy of the press release is filed as Exhibit 99.1 to this Current Report on Form 8-K and incorporated by reference herein.

  

 


 

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits:

 

Exhibit
No.
  Description
     
5.1   Opinion of Wyrick Robbins Yates & Ponton LLP.
     
10.1   Securities Purchase Agreement, dated as of March 10, 2025, by and between Fathom Holdings Inc. and the purchasers signatory thereto.
     
23.1   Consent of Wyrick Robbins Yates & Ponton LLP (included in Exhibit 5.1).
     
99.1   Press Release, dated March 11, 2025.
     
104   The cover pages of this Current Report on Form 8-K, formatted in Inline XBRL.

 

 


 

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.

 

  FATHOM HOLDINGS INC.
     
Date: March 11, 2025 By: /s/ Marco Fregenal
    Marco Fregenal
    President and Chief Executive Officer

 

 

 

EX-5.1 2 tm258709d3_ex5-1.htm EXHIBIT 5.1

 

Exhibit 5.1

 

Wyrick Robbins Yates & Ponton LLP

4101 Lake Boone Trail, Suite 300

Raleigh, North Carolina 27607

 

March 11, 2025

 

Fathom Holdings Inc.

2000 Regency Parkway Drive, Suite 300

Cary, North Carolina 27518

 

Ladies and Gentlemen:

 

You have requested our opinion with respect to certain matters in connection with the proposed offer and sale by Fathom Holdings Inc., a North Carolina corporation (the “Registrant”), of 4,338,003 shares of the Company’s common stock, no par value (the “Shares”), pursuant to a Registration Statement on Form S-3 (File No. 333-276318) (the “Registration Statement”), which was filed under the Securities Act of 1933, as amended (the “Securities Act”), with the Securities and Exchange Commission (the “SEC”) on December 29, 2023, and declared effective by the SEC on January 11, 2024, the base prospectus dated January 11, 2024 contained in the Registration Statement (the “Base Prospectus”), and the prospectus supplement relating to the proposed offer and sale of the Shares filed with the SEC on March 11, 2025 pursuant to Rule 424(b) of the rules and regulations under the Securities Act (the “Prospectus Supplement”, and together with the Base Prospectus, the “Prospectus”).

 

The Shares are to be sold by the Company pursuant to that certain Purchase Agreement, dated as of March 10, 2025, by and between the Company and the signatories thereto (the “Purchase Agreement”), which has been filed as an exhibit to the Company’s Current Report on Form 8-K filed on March 11, 2025.

 

In connection with the preparation of this opinion, we have examined the Registration Statement and the Prospectus and such documents and considered such questions of law as we have deemed necessary or appropriate. We have assumed the authenticity of all documents submitted to us as originals, the conformity to originals of all documents submitted to us as copies thereof and the genuineness of all signatures. As to questions of fact material to our opinions, we have relied upon the certificates of certain officers of the Company without independent investigation or verification.

 

Based on the foregoing, we are of the opinion that the Shares have been duly authorized and, when issued and sold in the manner described in the Purchase Agreement and in accordance with the Registration Statement and the Prospectus, will be validly issued, fully paid and non-assessable.

 

We consent to the use of this opinion as an exhibit to the Registration Statement and further consent to the use of our name wherever appearing in the Registration Statement, including the prospectus constituting a part thereof, and any amendments thereto. In giving this consent, we do not hereby admit that this firm is within the category of persons whose consent is required under Section 7 of the Act or the rules and regulations promulgated thereunder by the SEC.

 

This opinion is intended for use in connection with issuance and sale of the Shares subject to the Registration Statement and is not to be relied upon for any other purpose. This opinion is rendered as of the date first written above and based solely on our understanding of facts in existence as of such date after the aforementioned examination. We assume no obligation to advise you of any fact, circumstance, event or change in the law or the facts that may hereafter be brought to our attention whether or not such occurrence would affect or modify any of the opinions expressed herein.

 

Very truly yours,
 
/s/ WYRICK ROBBINS YATES & PONTON LLP

 

 

 

EX-10.1 3 tm258709d3_ex10-1.htm EXHIBIT 10.1

Exhibit 10.1

SECURITIES PURCHASE AGREEMENT

This SECURITIES PURCHASE AGREEMENT (this “Agreement”) is made and entered into as of March 10, 2025 by and between Fathom Holdings Inc., a North Carolina corporation (the “Company”), and each purchaser identified in Exhibit A and on the signature pages hereto (each, a “Purchaser” and collectively, the “Purchasers”).

Preliminary Statement

WHEREAS, subject to the terms and conditions set forth in this Agreement and pursuant to an effective registration statement under the Securities Act (as defined below), the Company desires to issue and sell to the Purchasers, and the Purchasers desires to purchase from the Company, shares of common stock of the Company, no par value (“Common Stock”) as more fully described in this Agreement in an aggregate principal amount of $2,999,999.71.

NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the Company and the Purchasers agree as follows:

ARTICLE 1

PURCHASE AND SALE

Subject to the terms and conditions set forth herein, the Company agrees to sell and issue to each Purchaser, and each Purchaser agrees to purchase, such principal amount of shares of Common Stock (the “Shares”) at the respective Purchaser’s Total Purchase Price set forth in Exhibit A (for each Purchaser, the “Purchase Price”).

ARTICLE 2

CLOSING

2.1. Closing. The closing (“Closing”) of the sale of the Shares shall take place March 14, 2025 or on such other date as the parties may agree (the “Closing Date”).

2.2. Deliveries.

(a) On or prior to the Closing Date, the Company shall deliver or cause to be delivered to Purchaser the following:

(i) this Agreement duly executed by the Company;

(ii) the Prospectus Supplement (as hereinafter defined, which may be delivered in accordance with Rule 172 under the Securities Act of 1933, as amended (the “Securities Act”));

(iii) a copy of the irrevocable instructions to the Company’s transfer agent, Continental Stock Transfer & Trust Co. (the “Transfer Agent”), instructing the Transfer Agent to deliver, on an expedited basis, in book entry form (unless otherwise requested by the Purchaser) the Shares, registered in the name of such Purchaser; and

(iv) the Company’s wire instructions, on Company letterhead and executed by the Chief Executive Officer or Chief Financial Officer.

(b) On or prior to the Closing Date, the Purchaser shall deliver or cause to be delivered to the Company the following:

(i) this Agreement duly executed by Purchaser; and (a) The obligations of the Company hereunder in connection with the Closing are subject to the following conditions being met:

(ii) the Purchase Price.

2.3. Closing Conditions.

(i) the representations and warranties of the Purchaser contained herein shall be materially true and correct as of the Closing Date as if made as of the Closing Date;

(ii) all obligations, covenants and agreements required to be performed or complied with by Purchaser on or prior to the Closing shall have been performed or complied; and

(iii) the delivery by Purchaser of the items set forth in Section 2.2(b) of this Agreement.

(b) The obligations of the Purchaser hereunder in connection with the Closing are subject to the following conditions being met:

(i) the representations and warranties of the Company contained herein shall be materially true and correct as of the hereof and as of the Closing Date as if made as of the Closing Date (unless such representation or warranty was made as of a specific date, in which case such representation and warranty true and correct as of such date);

(ii) all obligations, covenants and agreements required to be performed or complied with by the Company on or prior to the Closing shall have been performed or complied with by it;

(iii) the delivery by the Company of the items set forth in Section 2.2(a) of this Agreement;

(iv) from the date hereof to the Closing Date, trading in the Common Stock shall not have been suspended by the Securities and Exchange Commission (the “SEC”) or the Nasdaq Capital Market (“Nasdaq”);

(v) no stop order suspending the effectiveness of the Registration Statement or any part thereof, or preventing or suspending the use of the Prospectus or the Prospectus Supplement (all as hereinafter defined), or any part thereof, shall have been issued, and no proceedings for that purpose or otherwise under the Securities Act, shall have been initiated or threatened by the SEC, and no objection shall have been raised by Nasdaq with respect to the consummation of the transactions contemplated by this Agreement;

(vi) the Shares shall be freely tradable on Nasdaq; and

(vii) no governmental authority shall have issued any order, decree or ruling, and no law shall be in effect, enjoining, restraining or otherwise prohibiting any of the transactions contemplated hereby, and the Company shall have obtained all governmental, regulatory or third-party consents and approvals, if any, necessary for the sale and issuance of the Shares, including without limitation, those required by Nasdaq.

ARTICLE 3

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

The Company represents, warrants and covenants to Purchaser as follows:

3.1. Organization and Standing. The Company is duly incorporated, validly existing, and in good standing under the laws of the jurisdiction of its organization with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted.

3.2. Power. The Company has all requisite power to execute and deliver this Agreement, to sell and issue the Shares hereunder, to carry out and perform its obligations under the terms of this Agreement and to consummate the transactions contemplated hereby. The execution and delivery of this Agreement by the Company and the consummation by it of the transactions contemplated hereby have been duly authorized by all necessary corporate action on the part of the Company and no further action is required by the Company, the Board of Directors or the Company’s stockholders in connection herewith. 

3.3. Authorization. The execution, delivery, and performance of this Agreement by the Company and the consummation of the transactions contemplated hereby have been duly authorized by all requisite action on the part of the Company and this Agreement constitutes the legal, valid, and binding obligations of the Company enforceable in accordance with its terms, except (a) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, and other laws of general application affecting enforcement of creditors’ rights generally, and (b) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies.

3.4. The Shares. The Shares have been duly authorized by the Company and, when duly executed and delivered and paid for as provided herein, will be duly and validly issued, fully paid and nonassessable and free and clear of all liens or other restrictions, and the holder of the Shares shall be entitled to all rights accorded to a holder of the Company’s common stock.

3.5. Registration Statement. The Registration Statement on Form S-3 filed with the SEC and declared effective January 11, 2024 (the “Registration Statement”) is effective as provided in Section 8 of the Securities Act. No stop order suspending the effectiveness of the Registration Statement is in effect and no proceedings for such purpose have been instituted or are pending or, to the knowledge of the Company, are contemplated or threatened by the SEC.

3.6. No Conflict. The execution, delivery and performance of this Agreement by the Company, the issuance and sale of the Shares and the consummation of the other transactions contemplated by this Agreement will not (i) violate any provision of the Certificate of Incorporation or Bylaws of the Company, each as currently in effect, (ii) conflict with or result in a violation of or default (with or without notice or lapse of time, or both) under, or give rise to a right of termination, cancellation or acceleration of any obligation, a change of control right or to a loss of a benefit under any agreement or instrument, credit facility, franchise, license, judgment, order, statute, law, ordinance, rule or regulations, applicable to the Company or any of its subsidiaries or their respective properties or assets, or (iii) result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Company or any of its subsidiaries is subject (including federal and state securities laws and regulations) and the rules and regulations of any self-regulatory organization to which the Company or its securities are subject, or by which any property or asset of the Company or any of its subsidiaries is bound or affected, except, in the case of clauses (ii) and (iii), as would not, individually or in the aggregate, be reasonably expected to have a material adverse effect.

3.7. Consents. No consent, approval, authorization, filing with or order of or registration with, any court or governmental agency or body is required in connection with the authorization, execution or delivery by the Company of this Agreement, the issuance and sale of the Shares and the performance by the Company of its other obligations under this Agreement, except such as (a) have been or will be obtained or made under the Securities Act or the Exchange Act, (b) the filing of any requisite notices and/or application(s) to the Nasdaq Stock Market LLC for the issuance and sale of the Shares and the listing of the Shares for trading thereon in the time and manner required thereby or (c) such that the failure of which to obtain would not have a material adverse effect on the Company. All notices, consents, authorizations, orders, filings and registrations which the Company is required to deliver or obtain prior to the Closing pursuant to the preceding sentence have been obtained or made or will be delivered or obtained or effected, and shall remain in full force and effect, on or prior to the Closing.

ARTICLE 4

REPRESENTATIONS AND WARRANTIES OF PURCHASER

Purchaser represents, warrants and covenants to the Company as follows:

4.1. Organization. If the Purchaser is not a natural person, the Purchaser is duly organized, validly existing, and in good standing under the laws of the jurisdiction of its organization.

4.2. Power. If the Purchaser is not a natural person, the Purchaser has all requisite power to execute and deliver this Agreement and to carry out and perform its obligations under the terms of this Agreement.

4.3. Authorization. The execution, delivery, and performance of this Agreement by Purchaser has been, if not a natural person, duly authorized by all requisite action, and this Agreement constitutes the legal, valid, and binding obligation of Purchaser enforceable in accordance with its terms, except (a) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, and other laws of general application affecting enforcement of creditors’ rights generally, and (b) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies.

4.4. Consents and Approvals. Purchaser need not give any notice to, make any filing with, or obtain any authorization, consent, or approval of any government or governmental agency in order to consummate the transactions contemplated by this Agreement, other than filings that may be required under the Securities and Exchange Act of 1934, as amended (the “Exchange Act”) after the Closing.

4.5. Non-Contravention. Neither the execution and the delivery of this Agreement, nor the consummation of the transactions contemplated hereby, will violate in any material respect any constitution, statute, regulation, rule, injunction, judgment, order, decree, ruling, charge, or other restriction of any government, governmental agency, or court to which Purchaser is subject. No approval, waiver, or consent by Purchaser under any instrument, contract, or agreement to which Purchaser or any of its affiliates is a party is necessary to consummate the transactions contemplated hereby. 

4.6. Disclosure of Information. The Purchaser and its or his advisors, if any, have been furnished with all materials relating to the business, finances, and operations of the Company and materials relating to the cash purchase of the Shares that the Purchaser considers necessary or appropriate to make an informed investment decision with respect to the Purchase under this Agreement and that have been requested by the Purchaser, and has had the opportunity to review the Company’s filings under the Securities Act and the Exchange Act (including risks factors set forth therein). The Purchaser and its advisors, if any, have been afforded the opportunity to ask questions of the Company. The Purchaser has sought such accounting, legal, and tax advice that it has considered necessary to make an informed investment decision with respect to the cash purchase of the Shares.

4.7. Finder. Purchaser is not obligated and will not be obligated to pay any broker commission, finders’ fee, success fee, or commission in connection with the transactions contemplated by this Agreement.

ARTICLE 5

OTHER AGREEMENTS OF THE PARTIES

5.1. Shares. The Shares issued pursuant to this Agreement shall be issued free of all legends.

5.2. Securities Laws Disclosure; Publicity. The Company shall, by 5:30 p.m., New York City time, on the first (1st) Business Day immediately following the date hereof, file with the SEC a Current Report on Form 8-K (including all exhibits thereto, the “Disclosure Document”) disclosing all material terms of the transactions contemplated hereby and attaching this Agreement as an exhibit to such Disclosure Document. Following the filing of the Disclosure Document, no Purchaser shall at such time be in possession of any material non-public information received from the Company, its subsidiaries or any of their respective officers, directors, employees or agents.  

5.3. Prospectus Supplement. The Company shall timely file the Prospectus pursuant to Rule 424(b) under the Securities Act in the manner and within the time period required by that Rule. The prospectus in the form in which it appears in the Registration Statement is hereinafter called the “Base Prospectus.” Such prospectus supplement relating to the Shares, in the form in which it shall be filed with the SEC pursuant to Rule 424(b) under the Securities Act (including the Base Prospectus as so supplemented) is hereinafter called the “Prospectus.” Any reference herein to the Base Prospectus or the Prospectus shall be deemed to include the documents incorporated by reference therein pursuant to Item 12 of Form S-3 under the Securities Act as of the date of such prospectus.

5.4. Listing. The Company shall promptly take any action required to maintain the listing of all of the Shares on Nasdaq.

5.5. Director Appointment/Nomination.

(i)      The Company agrees to appoint Adam Rothstein (the “Director Designee”) to its Board of Directors (the “Board”), subject to approval by the Board upon the recommendation of the Nominating and Corporate Governance Committee of the Board, to serve as a director until the Company’s 2025 annual meeting of shareholders (the “2025 Annual Meeting”), or until his successor is duly elected and qualified, which approval shall not be unreasonably withheld and shall be effective on the Closing Date. In connection with the Director Designee’s appointment to the Board, the Company will also appoint the Director Designee to the Audit Committee, the Nominating and Corporate Governance Committee and to the newly formed Strategy and Innovation Committee of the Board of Directors (together, the “Board Committees”).

(ii)     The Company’s Board will nominate the Director Designee to be a Company director at the 2025 Annual Meeting and the Board will use its best efforts to cause the election of the Director Designee at the 2025 Annual Meeting. The Company shall continue to nominate the Director Designee to be a Company director at each subsequent Annual Meeting and, to the fullest extent permitted by applicable law (including with respect to the Board’s judgment in exercising its director duties under North Carolina law), the Board will use its best efforts to cause the election of the Director Designee at such subsequent Annual Meeting. For the avoidance of doubt, to the fullest extent permitted by applicable law (including with respect to the Board’s judgment in exercising its director duties under North Carolina law), the Company shall use substantially the same level of effort and provide substantially the same level of support for the Director Designee as is used and/or provided for the other director nominees of the Company with respect to the applicable meeting of stockholders. In addition, for as long as the Director Designee remans on the Board, the Board shall maintain the Director Designee’s appointment to each of the Board Committees, subject to compliance with applicable rules and regulations.

5.6. Non-Public Information. Except with respect to the material terms and conditions of the transactions contemplated by this Agreement, which shall be disclosed pursuant to Section 5.2 of this Agreement, the Company covenants and agrees that from and after the date hereof, neither it, nor any other person acting on its behalf will, other than with respect to the Director Designee or any current director of the Company, provide any Purchaser or its agents or counsel with any information that constitutes, or the Company reasonably believes constitutes, material non-public information, unless prior thereto such Purchaser shall have consented in writing to the receipt of such information and agreed in writing with the Company to keep such information confidential. The Company understands and confirms that each Purchaser shall be relying on the foregoing covenant in effecting transactions in securities of the Company. To the extent that the Company, any of its subsidiaries, or any of their respective officers, directors, agents, employees or affiliates delivers after the date hereof any material, non-public information to a Purchaser without such Purchaser’s consent, the Company hereby covenants and agrees that such Purchaser shall not have any duty of confidentiality to the Company, any of its subsidiaries, or any of their respective officers, directors, agents, employees or affiliates, or a duty to the Company, any of its subsidiaries or any of their respective officers, directors, agents, employees or affiliates not to trade on the basis of, such material, non-public information, provided that the Purchaser shall remain subject to applicable law; provided, however, this sentence shall not apply if the Company and a given Purchaser are subject to a separate written confidentiality agreement or other agreement pursuant to which such Purchaser is subject to confidentiality obligations, which shall remain in full force and effect in accordance with its terms.

ARTICLE 6

MISCELLANEOUS

6.1. Survival. The representations, warranties and covenants contained herein shall survive the execution and delivery of this Agreement and the sale of the Shares.

6.2. Termination. This Agreement shall terminate and be of no further force and effect if the Closing has not occurred on or before March 17, 2025. In the event of termination under this Section 6.2, neither party shall have any further obligation to the other.

  

6.3. Assignment; Successors and Assigns. This Agreement may not be assigned by either party without the prior written consent of the other party; provided, that this Agreement may be assigned by any Purchaser to the valid transferee of any security purchased hereunder. This Agreement and all provisions thereof shall be binding upon, inure to the benefit of, and are enforceable by the parties hereto and their respective successors and permitted assigns.

6.4. Notices. All notices, requests, and other communications hereunder shall be in writing and will be deemed to have been duly given and received (a) when personally delivered, (b) when sent by facsimile upon confirmation of receipt, (c) one business day after the day on which the same has been delivered prepaid to a nationally recognized courier service, or (d) five business days after the deposit in the United States mail, registered or certified, return receipt requested, postage prepaid, in each case addressed to: Fathom Holdings Inc., 2000 Regency Parkway Drive, Suite 300, Cary, North Carolina 27518, Attn: CEO, with a copy to Wyrick Robbins Yates & Ponton LLP, 4101 Lake Boone Trail #300, Raleigh, North Carolina 27607, Attn: Andrew J. Gibbons, and as to Purchaser at the address set forth next to the Purchaser in Exhibit A of this Agreement. Any party hereto from time to time may change its address, or other information for the purpose of notices to that party by giving notice specifying such change to the other parties hereto. Purchaser and the Company may each agree in writing to accept notices and other communications to it hereunder by electronic communications pursuant to procedures reasonably approved by it; provided that approval of such procedures may be limited to particular notices or communications.

6.5. Governing Law. This Agreement, and the provisions, rights, obligations, and conditions set forth herein, and the legal relations between the parties hereto, including all disputes and claims, whether arising in contract, tort, or under statute, shall be governed by and construed in accordance with the laws of the State of New York without giving effect to its conflict of law provisions.

6.6. Severability. In the event that any provision of this Agreement or the application of any provision hereof is declared to be illegal, invalid, or otherwise unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall not be affected except to the extent necessary to delete such illegal, invalid, or unenforceable provision unless that provision held invalid shall substantially impair the benefits of the remaining portions of this Agreement.

6.7. Headings. The headings in this Agreement are for convenience of reference only and shall not constitute a part of this Agreement, nor shall they affect its meaning, construction, or effect.

6.8. Entire Agreement. This Agreement embodies the entire understanding and agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings relating to the subject matter hereof.

6.9. Expenses. Except as expressly set forth in this Agreement to the contrary, each party shall pay its own out-of-pocket fees and expenses, including the fees and expenses of attorneys, accountants and consultants employed by such party, incurred in connection with the proposed investment in the Securities and the consummation of the transactions contemplated thereby; provided, however, that the Company shall pay all transfer agent fees (including, without limitation, any fees required for same-day processing of any instruction letter delivered by the Company), stamp taxes and other taxes (other than income taxes) and duties levied in connection with the delivery of any Shares to the Purchaser. Notwithstanding the foregoing, the Company shall pay the reasonable fees and expenses of Cooley LLP, counsel for Adam Rothstein and ReMY Capital Partners III LP, in an amount not to exceed $45,000 in the aggregate.

6.10. Further Assurances. The parties agree to execute and deliver all such further documents, agreements and instruments and take such other and further action as may be necessary or appropriate to carry out the purposes and intent of this Agreement.

6.11. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall constitute an original, but all of which, when taken together, shall constitute but one instrument, and shall become effective when one or more counterparts have been signed by each party hereto and delivered to the other party. Delivery of an executed Agreement by one party to the other may be made by facsimile or electronic mail (including any electronic signature covered by the U.S. federal ESIGN Act of 2000, Uniform Electronic Transactions Act, the Electronic Signatures and Records Act or other applicable law, e.g., www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes. 

6.12. Adjustments in Respect of Certain Events. In the event of any stock split, subdivision, dividend or distribution to all stockholders of the Company payable in shares of Common Stock (or other securities or rights convertible into, or entitling the holder thereof to receive directly or indirectly shares of Common Stock), combination or other similar recapitalization or event occurring after the date hereof and prior to the Closing, each reference in this Agreement to a number of shares or a price per share shall be deemed to be amended to appropriately account for such event.

[Signature pages follows]

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and delivered as of the date first above written.

COMPANY:
FATHOM HOLDINGS INC.
By: /s/ Marco Fregenal
Name: Marco Fregenal
Title: President, Chief Executive Officer

 

PURCHASER:
By:  /s/ Stephen Murray
Name: Stephen Murray

 

PURCHASER:
By:  /s/ Scott Flanders
Name: Scott Flanders

 

 

PURCHASER:

ADAM ROTHSTEIN

By:  /s/ Adam Rothstein
Name: Adam Rothstein

 

 

PURCHASER:

PROMETHEUS FOUNDATION

By:  /s/ Leonard Esmond
Name: Leonard Esmond
  Title: Treasurer

 

 

PURCHASER:

REMY CAPITAL PARTNERS III, LP

By:  /s/ Mark S. Siegel
Name: Mark S. Siegel
  Title: President of the General Partner

 

 

[Signature Page to Securities Purchase Agreement]

EXHIBIT A

Purchaser Total Shares Per Share
Purchase Price
Total Purchase
Price
Address
ReMY Capital Partners III LP 657,256 $ 0.6847 $ 450,023.18
Prometheus Foundation 2,117,824 $ 0.6847 $ 1,450,074.09
Adam Rothstein 730,284 $ 0.6847 $ 500,025.45
Scott Flanders 693,866 $ 0.7206 $ 499,999.84
Steve Murray 138,773 $ 0.7206 $ 99,999.82
TOTAL 4,338,003 $ 3,000,122.39

EX-99.1 4 tm258709d3_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1 

 

 

Fathom Announces $3.0 Million Registered Direct Offering

 

Cary, NC, March 11, 2025 – Fathom Holdings Inc. (Nasdaq: FTHM) ("Fathom"; or the "Company"), a national, technology-driven, end-to-end real estate services platform integrating residential brokerage, mortgage, title, and SaaS offerings for brokerages and agents, today announced that it has entered into a definitive securities purchase agreement for the purchase of an aggregate of 3,505,364 shares of its common stock to certain investors at a purchase price of $0.6847 per share, and an aggregate of 832,639 shares of its common stock to members of its Board of Directors (the “Board”) at a purchase price of $0.7206 per share, which was the consolidated closing bid price per share on March 10, 2025, in a registered direct offering (the “Offering”). The closing of the Offering is expected to occur on or about March 14, 2025, subject to the satisfaction of customary closing conditions.

 

As a part of the Offering and in connection with the closing of the Offering, the Company has agreed to appoint Adam Rothstein to the Board, subject to approval by the Board upon the recommendation of the Nominating and Corporate Governance Committee of the Board.

 

The financing is being led by new investors, including, Adam Rothstein and ReMY Capital Partners III LP, with participation from current members of the Board, Scott Flanders and Steve Murray.

 

The aggregate gross proceeds to the Company from the Offering are expected to be approximately $3.0 million, before deducting estimated offering expenses payable by the Company. The Company intends to use the net proceeds from the Offering for general corporate and working capital purposes and funding strategic acquisitions of businesses that are complementary to its own.

 

The securities described above are being offered pursuant to a “shelf” registration statement (File No. 333-276318) filed with the Securities and Exchange Commission (“SEC”) on December 29, 2023 and declared effective on January 11, 2024. The Offering is being made only by means of a prospectus forming a part of the effective registration statement. The prospectus supplement and the accompanying prospectus relating to the securities being offered will be filed with the SEC and be available at the SEC’s website at www.sec.gov. Electronic copies of the prospectus supplement and the accompanying prospectus relating to the securities being offered may also be obtained, when available, by contacting the Company at 2000 Regency Parkway Drive, Suite 300 Cary, North Carolina 27518 or by telephone at (888) 455-6040.

  

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.

 

About Fathom Holdings Inc.

 

Fathom Holdings Inc. is a national, technology-driven real estate services platform integrating residential brokerage, mortgage, title, and SaaS offerings to brokerages and agents by leveraging its proprietary cloud-based software, intelliAgent. The Company's brands include Fathom Realty, Encompass Lending, intelliAgent, LiveBy, Real Results, and Verus Title.

 

 


 

 

Cautionary Note Concerning Forward-Looking Statements

 

This press release contains "forward-looking statements" that involve risks and uncertainties which we expect will or may occur in the future and may impact our business, financial condition and results of operations. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including risks associated with general economic conditions, including rising interest rates; risks associated with the Company’s Bitcoin strategy, including to volatility; its ability to generate positive operational cash flow; risks associated with the Company's ability to continue achieving significant growth; its ability to continue its growth trajectory while achieving profitability over time; risks related to ongoing and future litigation; and other risks as set forth in the Risk Factors section of the Company's most recent Form 10-K as filed with the SEC and supplemented from time to time in other Company filings made with the SEC, including the Company’s Current Report on Form 8-K filed on or around January 23, 2025. Copies of Fathom's Form 10-K and other SEC filings are available on the SEC's website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release except as required by law.

 

Investor Contact:

 

Dave Gentry, CEO

RedChip Companies, Inc.

1-407-644-4256

FTHM@redchip.com