UNITED STATES
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SCHEDULE 14A
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Proxy Statement Pursuant to Section 14(a) of the
Filed by the Registrant
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Filed by a Party other than the Registrant
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Check the appropriate box:
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Preliminary Proxy Statement
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Confidential, For Use of the Commission Only (As Permitted by Rule 14a
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(e)(2))
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Definitive Proxy Statement
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Definitive Additional Materials
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Soliciting Material under Rule 14a
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Abpro Holdings, Inc.
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Payment of Filing Fee (Check all boxes that apply):
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No fee required.
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Fee paid previously with preliminary materials.
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Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules 14a
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(i)(1) and 0
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Securities Exchange Act of 1934
(Name of Registrant as Specified in Its Charter)
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
ABPRO HOLDINGS, INC.
NOTICE OF SPECIAL MEETING OF STOCKHOLDERS
Meeting Date: April 8, 2025
To the Stockholders of Abpro Holdings, Inc.:
Notice is hereby given that the Special Meeting of Stockholders (the “Special Meeting”) of Abpro Holdings, Inc. (the “Company,” “Abpro,” “us,” “we” and “our”) will be held on Tuesday, April 8, 2025 at 9:00 a.m., Eastern Time, via a live webcast on the Internet. Stockholders will be able to virtually attend the Special Meeting online, vote your shares electronically and submit questions during the Special Meeting by visiting https: // www.cstproxy.com /abpro/2025 . During the Special Meeting, stockholders will be asked to consider and vote upon the following proposals:
1. To approve, for purposes of Nasdaq Listing Rule 5635(d), the issuance of shares of the Company’s common stock, par value $0.0001 per share (“Common Stock”), to YA II PN, LTD. (“Yorkville”), pursuant to that certain Standby Equity Purchase Agreement, dated October 30, 2024, by and between the Company, Atlantic Coastal Acquisition Corp. II, a Delaware corporation (“ACAB”), and Yorkville (the “SEPA”), which shares may represent more than 20% of our issued and outstanding Common Stock as of the date of the SEPA (the “Yorkville Share Issuance Proposal”); and
2. To approve an adjournment of the Special Meeting to a later date or dates, if necessary or appropriate, to permit further solicitation of proxies in the event that there are insufficient votes for the approval of the Yorkville Share Issuance Proposal (the “Adjournment Proposal”).
Stockholders are referred to the accompanying proxy statement (the “Proxy Statement”) for more detailed information with respect to the matters to be considered at the Special Meeting. After careful consideration, the Board recommends a vote “FOR” the Yorkville Share Issuance Proposal and “FOR” the Adjournment Proposal .
The Board has fixed the close of business on March 14, 2025, as the record date (the “Record Date”) for determining the stockholders entitled to notice of, and to vote at, the Special Meeting or any adjournments thereof. Only the stockholders of record of our Common Stock are entitled to receive notice of, and to vote at, the Special Meeting or any adjournments thereof. The 297,160 shares of the Company’s Common Stock offered and sold to Yorkville under the SEPA from November 13, 2024 through the close of business on March 14, 2025 (including the Commitment Shares), are not entitled to vote on the Yorkville Share Issuance Proposal in accordance with Nasdaq Listing Rule 5635(d). The date of mailing this Notice of Meeting and Proxy Statement is on or about March 24, 2025.
You are cordially invited to attend the Special Meeting online. Whether or not you expect to attend the Special Meeting, you are requested to read the enclosed Proxy Statement and to sign, date and return the accompanying proxy card or voting instruction form as soon as possible. This will assure your representation and a quorum for the transaction of business at the Special Meeting. If you attend the Special Meeting online, the proxy will not be used if you so request by revoking it as described in the Proxy Statement. If you decide to attend the Special Meeting, you will be able to vote electronically, even if you have previously submitted your proxy or voting instruction form.
Hard copies of the Company’s Proxy Statement to security holders in connection with the Special Meeting are being mailed to stockholders of record as of the close of business on March 14, 2025, beginning on or about March 24, 2025. The Company’s Proxy Statement to security holders is also available at https: // www.cstproxy.com /abpro/2025 .
If you have any questions about accessing materials or voting, please call 1 -800-450-7155 .
YOUR VOTE AND PARTICIPATION IN THE COMPANY’S AFFAIRS ARE IMPORTANT.
If your shares are registered in your name, even if you plan to attend the Special Meeting or any postponement or adjournment of the Special Meeting online, we request that you vote by telephone, over the Internet, or complete, sign and mail your proxy card to ensure that your shares will be represented at the Special Meeting.
If your shares are held in the name of a broker, trust, bank or other nominee, and you receive notice of the Special Meeting through your broker or through another intermediary, please vote or complete and return the materials in accordance with the instructions provided to you by such broker or other intermediary or contact your broker directly in order to obtain a proxy issued to you by your nominee holder to attend the Special Meeting and vote online. Failure to do so may result in your shares not being eligible to be voted by proxy at the Special Meeting.
By order of our Board,
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/s/ Miles Suk |
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Miles Suk |
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Chief Executive Officer |
ABPRO HOLDINGS, INC.
SPECIAL MEETING OF STOCKHOLDERS
TO BE HELD ON APRIL
8, 2025
March 24, 2025
Dear Abpro Holdings, Inc. Stockholders:
You are invited to attend the Special Meeting of Stockholders (the “Special Meeting”) of Abpro Holdings, Inc. (the “Company,” “Abpro,” “us,” “we” and “our”) on Tuesday, April 8, 2025, which will be held virtually at https://www.cstproxy.com/abpro/2025 , at 9:00 a.m., Eastern Time. The Company has determined that the Special Meeting will be a virtual meeting conducted exclusively via live webcast. You or your proxyholder will be able to attend the virtual Special Meeting online, vote your shares electronically, and submit questions during the Special Meeting by visiting https: // www.cstproxy.com /abpro/2025 and entering the control number included on your proxy card or voting instruction form, as applicable. To receive access to the virtual Special Meeting, registered stockholders and beneficial stockholders (those holding shares through a stock brokerage account or by a bank or other holder of record) will need to follow the instructions applicable to them provided in the accompanying proxy statement (the “Proxy Statement”). Enclosed with this letter are your notice of Special Meeting of Stockholders, Proxy Statement and proxy voting card. The Proxy Statement included with this notice discusses the proposals to be considered at the Special Meeting. Please review the voting materials at https: // www.cstproxy.com /abpro/2025 .
At this Special Meeting, you will be asked to consider and vote upon the following proposals:
1. To approve, for purposes of Nasdaq Listing Rule 5635(d), the issuance of shares of the Company’s common stock, par value $0.0001 per share (“Common Stock”), to YA II PN, LTD. (“Yorkville”), pursuant to that certain Standby Equity Purchase Agreement, dated October 30, 2024, by and between the Company, Atlantic Coastal Acquisition Corp. II, a Delaware corporation (“ACAB”), and Yorkville (the “SEPA”), which shares may represent more than 20% of our issued and outstanding Common Stock as of the date of the SEPA (the “Yorkville Share Issuance Proposal”); and
2. To approve an adjournment of the Special Meeting to a later date or dates, if necessary or appropriate, to permit further solicitation of proxies in the event that there are insufficient votes for the approval of the Yorkville Share Issuance Proposal.
Our Board has fixed the close of business on March 14, 2025, as the record date for determining the stockholders entitled to notice of and to vote at the Special Meeting and any adjournment and postponements thereof (the “Record Date”). Only holders of record of shares of our Common Stock on the Record Date are entitled to receive notice of the Special Meeting and to vote at the Special Meeting or at any postponement(s) or adjournment(s) of the Special Meeting. The 297,160 shares of the Company’s Common Stock offered and sold to Yorkville under the SEPA from November 13, 2024 through the close of business on March 14, 2025 (including the Commitment Shares) are not entitled to vote on the Yorkville Share Issuance Proposal in accordance with Nasdaq Listing Rule 5635(d).
Accordingly, we urge you to review the accompanying material carefully and to promptly return the enclosed proxy card or voting instruction form. On the following pages, we provide answers to frequently asked questions about the Special Meeting.
Your vote is important. Whether or not you expect to attend the Special Meeting, you are requested to read the enclosed Proxy Statement and to sign, date and return the accompanying proxy card or voting instruction form as soon as possible . I encourage you to vote by telephone, over the Internet, or by marking, signing, dating and returning the enclosed proxy card so that your shares will be represented and voted at the Special Meeting, whether or not you plan to attend. If you decide to attend the Special Meeting, you will be able to vote electronically, even if you have previously submitted your proxy or voting instruction form.
If your shares are held in the name of a broker, trust, bank or other nominee, and you receive notice of the Special Meeting through your broker or through another intermediary, please vote or return the materials in accordance with the instructions provided to you by such broker or other intermediary or contact your broker directly in order to obtain a proxy issued to you by your nominee holder to attend the Special Meeting and vote online. Failure to do so may result in your shares not being eligible to be voted by proxy at the Special Meeting.
On behalf of the Board, I urge you to submit your proxy as soon as possible, even if you currently plan to attend the Special Meeting online.
Thank you for your ongoing support.
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Sincerely, |
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/s/ Miles Suk |
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Miles Suk |
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Chief Executive Officer |
Forward-Looking Statements
This proxy statement contains forward -looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this proxy statement that do not relate to matters of historical fact should be considered forward -looking statements, including without limitation statements regarding the Company’s ability to raise additional capital pursuant to its Standby Equity Purchase Agreement, by and between the Company, ACAB and Yorkville, dated October 30, 2024 (the “SEPA”), our expectations regarding our issuing shares and obtaining financing under the SEPA generally, the potential dilutive effects of any future issuances pursuant to the SEPA, and the impact of any future issuances pursuant to the SEPA on prevailing market prices for our Common Stock. These statements are based on management’s current assumptions and are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward -looking statements, including that the Yorkville Share Issuance Proposal may not be approved by the Company’s stockholders. For other important factors that could cause actual results to differ materially from the forward -looking statements in this proxy statement, please see the risks and uncertainties identified under the heading “Risk Factors” in our prospectus dated February 12, 2025, to our registration statement filed on Form S -1 (Registration No. 333 -284021 ) (the “Form S -1 ”) which is available on the Company’s website at www.abpro.co and on the Securities and Exchange Commission (“SEC”) website at www.sec.gov . All forward -looking statements reflect the Company’s beliefs and assumptions only as of the date of this proxy statement. The Company undertakes no obligation to update forward -looking statements to reflect future events or circumstances.
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PROXY STATEMENT
This proxy statement (the “Proxy Statement”) is furnished to you by the Board of Directors (the “Board”) of Abpro in connection with the solicitation of proxies for use at the special meeting of stockholders (the “Special Meeting”) to be held via a live webcast on the Internet at
https:
//
www.cstproxy.com
/abpro/2025
, on Tuesday, April
8, 2025 at 9:00 a
.m.
, Eastern Time, for the purposes set forth in the accompanying Notice of Special Meeting of Stockholders (the “Notice”), and at any postponement(s), adjournment(s) or recess(es) thereof. Hard copies of this Proxy Statement, along with the Notice and either a proxy card or a voting instruction form, are being mailed to our stockholders of record as of the close of business on March
14, 2025, beginning on or about March
24, 2025.
Unless the context otherwise requires, in this Proxy Statement, we use the terms “Abpro,” “we,” “our,” “us” and the “Company” to refer to Abpro Holdings, Inc. and its consolidated subsidiaries. In addition, unless the context otherwise requires, references to “stockholders” are to the holders of our common stock, par value $0.0001 per share (“Common Stock”).
Important Notice Regarding the Availability of Proxy Materials for the Special Meeting of Stockholders to be Held on Tuesday, April
8, 2025: Pursuant to the rules of the SEC, with respect to the Special Meeting, we have elected to utilize the “full set delivery” option of providing paper copies of all of our proxy materials by mail. The Notice of Special Meeting and Proxy Statement are also available at
https:
//
www.cstproxy.com
/abpro/2025
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SPECIAL MEETING OF STOCKHOLDERS
TO BE HELD ON APRIL 8, 2025
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QUESTIONS AND ANSWERS ABOUT THE SPECIAL MEETING
What is the purpose of the Special Meeting?
At the Special Meeting, you will be asked to act upon the matters outlined in the Notice, which include the following proposals:
1. To approve, for purposes of Nasdaq Listing Rule 5635(d), the issuance of shares of the Company’s Common Stock, to YA II PN, LTD. (“Yorkville”), pursuant to that certain Standby Equity Purchase Agreement, dated October 30, 2024, by and between the Company, Atlantic Coastal Acquisition Corp. II, a Delaware corporation (“ACAB”), and Yorkville (the “SEPA”), which shares may represent more than 20% of our issued and outstanding Common Stock as of the date of the SEPA (the “Yorkville Share Issuance Proposal”); and
2. To approve an adjournment of the Special Meeting to a later date or dates, if necessary or appropriate, to permit further solicitation of proxies in the event that there are insufficient votes for the approval of the Yorkville Share Issuance Proposal (the “Adjournment Proposal”).
Other than these proposals, no other proposals will be presented for a vote at the Special Meeting.
Why is the Company seeking stockholder approval of the Yorkville Share Issuance Proposal?
Nasdaq Listing Rule 5635(d) requires us to obtain stockholder approval prior to the sale, issuance or potential issuance of Common Stock (or securities convertible into or exercisable for Common Stock) in connection with a transaction other than a public offering at a price less than the “minimum price” which either alone or together with sales by officers, directors or substantial stockholders of the Company equals 20% or more of the Common Stock or 20% or more of the voting power outstanding before the issuance. Under Nasdaq Listing Rule 5635(d), “minimum price” means a price that is the lower of: (i) the Nasdaq Official Closing Price (as reflected on Nasdaq.com) immediately preceding the signing of the binding agreement; or (ii) the average Nasdaq Official Closing Price of the Common Stock (as reflected on Nasdaq.com) for the five trading days immediately preceding the signing of the binding agreement.
Our Board has determined that the SEPA and our ability to issue the shares of Common Stock thereunder in excess of 20% of our issued and outstanding Common Stock as of the date of the SEPA (the “Exchange Cap”) is in the best interests of the Company and its stockholders because the ability to sell shares of Common Stock to Yorkville provides us with a reliable source of capital for general corporate purposes, which may include, but are not limited to, funding working capital, capital expenditures, operating expenses and the development of our products. Furthermore, the SEPA provides the Company with future flexibility to enhance its liquidity in an opportunistic and efficient manner. Accordingly, our Board believes that providing the Company the flexibility to issue shares of Common Stock in excess of the Exchange Cap is advisable and in the best interests of the Company and our stockholders.
In addition, under the terms of the SEPA, Yorkville will provide a $2,000,000 advance to the Company pursuant to a convertible note, conditioned upon, among other things, obtaining stockholder approval of the Yorkville Share Issuance Proposal (the “Second Pre -paid Advance”). The Board believes that obtaining stockholder approval and securing the Second Pre -paid Advance is critical to the Company’s future.
What are the consequences if the Yorkville Share Issuance Proposal is not approved by stockholders?
The failure of the Company’s stockholders to approve this proposal will prevent the Company from selling, at less than the minimum price, shares of Common Stock to Yorkville in excess of the Exchange Cap. Furthermore, if we are limited in our ability to raise additional capital under the SEPA and we are unable to draw the $2,000,000 Second Pre -paid Advance, we may not be able to execute on our strategic plans, and we may need to seek alternative sources of capital to fund our operations, which may not be available to us on favorable terms, or at all. We can provide no assurance that we would be successful in raising funds in the future or that such funds could be raised at prices that would not create substantial dilution for our existing stockholders. If we are unable to raise additional capital, then we may have difficulty entering into liquidity transactions, which would lead to a decrease in revenues and adversely affect our operations and business plans.
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What vote is required to approve each proposal?
Each of the Yorkville Share Issuance Proposal and the Adjournment Proposal require the affirmative vote of a majority of the votes cast at the Special Meeting. We expect that the directors and executive officers will vote all their shares in favor of each of the Yorkville Share Issuance Proposal and the Adjournment Proposal.
Who is entitled to vote at the Special Meeting, and how many votes do they have?
Stockholders of record, including holders of our Common Stock, at the close of business on the Record Date may vote at the Special Meeting. There were 51,965,765 shares of Common Stock outstanding on the Record Date. The 297,160 share s of the Company’s Common Stock offered and sold to Yorkville under the SEPA from November 13, 2024 through the close of business on the Record Date (including the Commitment Shares) are not entitled to vote on the Yorkville Share Issuance Proposal in accordance with Nasdaq Listing Rule 5635(d).
How does the Board recommend I vote?
The Board recommends a vote “FOR” the Yorkville Share Issuance Proposal and “FOR” the Adjournment Proposal.
What is a proxy?
A proxy is a person you appoint to vote on your behalf. By using the methods discussed below, you will be appointing Miles Suk as your proxy. The proxy agent will vote on your behalf and will have the authority to appoint a substitute to act as proxy. If you are a “street name” holder, you must obtain a proxy from your broker or nominee in order to vote your stock at the Special Meeting. If you are unable to attend the Special Meeting, please vote by proxy so that your shares may be voted.
Why hold a virtual meeting?
We are hosting a virtual meeting for cost efficiency reasons and for increased accessibility by stockholders. You will be able to attend the Special Meeting online and submit questions by visiting https: // www.cstproxy.com /abpro/2025 . You will also be able to vote your shares electronically at the Special Meeting by following the instructions below.
Who can attend the meeting?
We have decided to hold the Special Meeting entirely online. You may attend the Special Meeting online only if you are a stockholder who is entitled to vote at the Special Meeting, or if you hold a valid proxy for the Special Meeting. You may attend and participate in the Special Meeting by visiting the following website: https://www.cstproxy.com/abpro/2025 . To attend and participate in the Special Meeting, you will need the control number included on your proxy card. If your shares are held in “street name,” as described below, you should contact your broker or other nominee to obtain your control number or otherwise vote through the broker or other nominee. You will need to obtain your own Internet access if you choose to attend the Special Meeting online and/or vote over the Internet. If you lose your control number, you may join the Special Meeting as a “Guest” but you will not be able to vote or ask questions. The meeting webcast will begin promptly at 9:00 a.m., Eastern Time. We encourage you to access the meeting prior to the start time. Online check -in will begin 15 minutes before the meeting time, and you should allow ample time for check -in procedures.
What if during the check-in time or during the Special Meeting I have technical difficulties or trouble accessing the virtual meeting website?
We will have technicians ready to assist you with any technical difficulties you may have accessing the virtual meeting website, and the information for assistance will be located on https: // www.cstproxy.com /abpro/2025 .
Can I submit questions during the Special Meeting?
Stockholders may submit appropriate questions during the meeting via the virtual meeting platform that are pertinent to the meeting matters. The Company will answer questions submitted by stockholders via email following the Special Meeting. Only stockholders that have accessed the Special Meeting as a stockholder (rather than a “Guest”)
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by following the procedures outlined above in “Who can attend the meeting?” will be permitted to submit questions during the Special Meeting. Each stockholder is limited to no more than two questions. We will not address questions that are, among other things:
• irrelevant to the business of the Special Meeting;
• related to material non -public information of the Company, including the status or results of our business since our last Quarterly Report on Form 10 -Q ;
• related to any pending, threatened or ongoing litigation;
• related to personal grievances;
• derogatory references to individuals or that are otherwise in bad taste;
• substantially repetitious of questions already submitted by another stockholder;
• in excess of the two -question limit;
• in furtherance of the stockholder’s personal or business interests; or
• out of order or not otherwise suitable for the conduct of the Special Meeting as determined by the Chairperson or Corporate Secretary in their reasonable judgment.
Additional information regarding questions submitted during the Special Meeting will be available in the “Rules of Conduct” available on the Special Meeting webpage for stockholders that have accessed the Special Meeting as a stockholder (rather than a “Guest”) by following the procedures outlined above in “Who can attend the meeting?”.
What are my voting rights under the Company’s equity structure?
Our second amended and restated certificate of incorporation (the “Charter”) provides that holders of Common Stock are entitled to one (1) vote for each share of Common Stock held as of the Record Date on all matters submitted to a vote of stockholders, provided, however, that, except as otherwise required in the Charter or by applicable law, the holders of Common Stock will not be entitled to vote on any amendment to our Charter that relates solely to the terms of one or more outstanding series of preferred stock if the holders of such affected series are entitled, either separately or together with the holders of one or more other such series, to vote thereon pursuant to our Charter (including any certificate of designation relating to any series of preferred stock) or pursuant to the DGCL.
As of the Record Date, there were 51,965,765 shares of Common Stock outstanding.
On the date of the mailing of this Proxy Statement, our Common Stock was listed on The Nasdaq Capital Market under the symbol “ABP.”
Who will solicit and pay the cost of soliciting proxies?
The Company will pay the cost of soliciting proxies for the general meeting and will reimburse banks, brokers and other custodians, nominees and fiduciaries representing beneficial owners of ordinary shares for their expenses in forwarding soliciting materials to beneficial owners of ordinary shares and in obtaining voting instructions from those owners. Our directors, officers and employees may also solicit proxies by telephone, mail or on the Internet. They will not be paid any additional amounts for soliciting proxies. In addition, we have retained Sodali Co. to act as a proxy solicitor in conjunction with the Annual Meeting. We have agreed to pay that firm $11,000, plus reasonable out -of-pocket expenses, for proxy solicitation services.
What is the difference between a stockholder of record and beneficial owner?
Stockholders of Record. If your shares are registered directly in your name with Continental Stock Transfer Trust Company, our stock transfer agent, you are considered the stockholder of record with respect to those shares. The Notice has been sent directly to you by us.
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Beneficial Owners. If your shares are held in a stock brokerage account or by a bank or other nominee, the nominee is considered the record holder of those shares. You are considered the beneficial owner of these shares, and your shares are held in “street name.” A notice or Proxy Statement and voting instruction form have been forwarded to you by your nominee. As the beneficial owner, you have the right to direct your nominee concerning how to vote your shares by using the voting instructions they included in the mailing or by following their instructions for voting by telephone or the Internet.
What is a broker non-vote ?
Broker non -votes occur when shares are held indirectly through a broker, bank or other intermediary on behalf of a beneficial owner (referred to as held in “street name”) and the broker submits a proxy but does not vote for a matter because the broker has not received voting instructions from the beneficial owner and (i) the broker does not have discretionary voting authority on the matter or (ii) the broker chooses not to vote on a matter for which it has discretionary voting authority.
How are abstentions and broker non-votes treated for purposes of the Special Meeting?
Abstentions are included in the determination of the number of shares of Common Stock, to the extent issued prior to the Record Date, present at the Special Meeting for determining a quorum at the meeting. An abstention is not an “affirmative vote,” but an abstaining stockholder is considered “entitled to vote” at the Special Meeting. Abstentions will have no effect on either the Yorkville Share Issuance Proposal or the Adjournment Proposal.
If you are a beneficial owner and you do not provide the broker, bank, trustee or other nominee that holds your shares with voting instructions, the broker or other nominee will determine if it has the discretionary authority to vote on the particular matter. Under applicable rules, brokers or other nominees have discretionary voting power with respect to proposals that are considered “routine,” but not with respect to “non -routine ” proposals. If a broker lacks discretionary voting power and you fail to provide voting instructions for your shares, a broker non -vote occurs. Each of the Yorkville Share Issuance Proposal and the Adjournment Proposal are considered a “non -routine ” proposal, so your broker does not have discretionary voting power with respect to your shares. Therefore, if you do not provide voting instructions to your broker, your broker may not vote your shares with respect to these proposals. Broker non -votes will be included in the determination of the number of shares of Common Stock present at the Special Meeting for determining a quorum at the meeting. Broker non -votes will have no effect on either the Yorkville Share Issuance Proposal or the Adjournment Proposal.
We urge you to direct your bank, broker or other nominee how to vote by returning your voting materials as instructed or by obtaining a proxy from your broker or other nominee in order to vote your shares electronically at the Special Meeting.
If I am a beneficial owner of shares, can my brokerage firm vote my shares?
If you are a beneficial owner and do not vote via the Internet or telephone or by returning a signed voting instruction form to your broker, your shares may be voted only with respect to so -called “routine” matters where your broker has discretionary voting authority over your shares. Under the applicable rules, each of the Yorkville Share Issuance Proposal and the Adjournment Proposal is considered a “non -routine ” matter. Accordingly, brokers will not be permitted to exercise discretionary voting authority to vote your shares on the Yorkville Share Issuance Proposal or the Adjournment Proposal.
How do I vote?
You may vote over the Internet, by telephone, by mail or online at the Special Meeting. Please be aware that if you vote by telephone or over the Internet, you may incur costs such as telephone and Internet access charges for which you will be responsible.
Vote by Internet. You can vote via the Internet at https: / / www.cstproxy.com /abpro/2025 . You will need to use the control number appearing on your proxy card to vote via the Internet. You can use the Internet to transmit your voting instructions up until 11:59 p.m. Eastern Time on April 7, 2025, which is the day before the meeting date. Internet voting is available 24 hours a day. If you vote via the Internet, you do not need to vote by telephone or return a proxy card.
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Vote by Telephone. You can vote by telephone by calling the toll -free telephone number 1 -800-450-7155 . You will need to use the control number appearing on your proxy card to vote by telephone. You may transmit your voting instructions from any touch -tone telephone up until 11:59 p.m. Eastern Time on April 7, 2025, which is the day before the meeting date. Telephone voting is available 24 hours a day. If you vote by telephone, you do not need to vote over the Internet or return a proxy card.
Vote by Mail. If you received a printed proxy card, you can vote by marking, dating and signing it, and returning it in the postage -paid envelope provided to Corporate Secretary, 68 Cummings Park Drive, Woburn, MA 01801. Please promptly mail your proxy card or voting instruction form to ensure that it is received prior to the closing of the polls at the Special Meeting.
Vote Online at the Meeting. To vote online during the Special Meeting, you must be logged in and registered to virtually attend the Special Meeting and cast your vote before the announcement of the close of voting during the Special Meeting. You are entitled to virtually attend the Special Meeting only if you were a stockholder of the Company as of the close of business on the Record Date or hold a valid proxy for the Special Meeting. If your shares are registered directly in your name, you are considered the stockholder of record and you have the right to vote virtually at the Special Meeting. If your shares are held in the name of your broker or other nominee, you are considered the beneficial owner of shares held in street name. As a beneficial owner, if you wish to vote at the Special Meeting, you will need to bring to the Special Meeting a legal proxy from your broker or other nominee authorizing you to vote those shares.
If you are not a stockholder of record but hold shares through a broker, bank, trustee or nominee (i.e., in street name), you should provide proof of beneficial ownership as of the Record Date (such as your most recent account statement prior to the Record Date), a copy of the voting instruction form provided by your broker, bank, trustee or nominee, or similar evidence of ownership.
If you vote by any of the methods discussed above, you will be designating Miles Suk, as your proxy, and they will vote your shares on your behalf as you indicate. Submitting a proxy will not affect your right to attend the Special Meeting and vote virtually.
If your shares are held in the name of a bank, broker or other nominee, you will receive separate voting instructions from your bank, broker or other nominee describing how to vote your shares. The availability of Internet voting will depend on the voting process of your bank, broker or other nominee. Please check with your bank, broker or other nominee and follow the voting instructions it provides.
How will my proxy vote my shares?
If you are a stockholder of record, your proxy will vote according to your instructions. If you choose to vote by mail and complete and return the enclosed proxy card but do not indicate your vote, your proxy will vote:
• “ FOR ” the approval, for purposes of Nasdaq Listing Rule 5635(d), the issuance of shares of Common Stock to Yorkville, pursuant the SEPA, in excess of the Exchange Cap; and
• “ FOR ” the approval of the proposal to adjournment the Special Meeting to a later date or dates, if necessary or appropriate, to permit further solicitation of proxies in the event that there are insufficient votes for the approval of the Yorkville Share Issuance Proposal.
We do not intend to bring any other matter for a vote at the Special Meeting, and we do not know of anyone else who intends to do so. Your proxies are authorized to vote on your behalf, however, using their best judgment, on any other business that properly comes before the Special Meeting.
If your shares are held in the name of a bank, broker or other nominee, you will receive separate voting instructions from your bank, broker or other nominee describing how to vote your shares. The availability of Internet voting will depend on the voting process of your bank, broker or other nominee. Please check with your bank, broker or other nominee and follow the voting instructions your bank, broker or other nominee provides.
As described above, under the applicable rules, each of the Yorkville Share Issuance Proposal and the Adjournment Proposal is considered to be a “non -routine ” matter. Accordingly, brokers will not have discretionary authority to vote on either the Yorkville Share Issuance Proposal or the Adjournment Proposal.
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How do I change my vote?
If you are a stockholder of record, you may revoke your proxy at any time before your shares are voted at the Special Meeting by:
• Notifying the Corporate Secretary in writing at 68 Cummings Park Drive, Woburn, MA 01801, that you are revoking your proxy before the closing of the polls;
• Submitting a proxy at a later date via the Internet, or by signing and delivering a proxy card relating to the same shares and bearing a later date than the date of the previous proxy prior to the vote at the Special Meeting, in which case your later -submitted proxy will be recorded and your earlier proxy revoked; or
• Attending and voting by ballot online at the Special Meeting.
Who counts the votes?
All votes will be tabulated by the inspector of election appointed for the Special Meeting.
What constitutes a quorum?
Stockholders holding at least a majority of the voting power of the Company’s Common Stock, represented in person or by proxy (regardless of whether the proxy has authority to vote on all matters), are necessary to constitute a quorum for the transaction of business at the Special Meeting. If you choose to have your shares represented by proxy at the Special Meeting, you will be considered part of the quorum. Both abstentions and broker non -votes are counted as present for the purpose of determining the presence of a quorum.
Do I have any dissenters’ or appraisal rights or cumulative voting rights with respect to any of the matters to be voted on at the Special Meeting?
No. None of our stockholders have any dissenters’ or appraisal rights or cumulative voting rights with respect to the matter to be voted on at the Special Meeting.
Where can I find the voting results of the Special Meeting?
The Company expects to publish the voting results of the Special Meeting in a Current Report on Form 8 -K , which it expects to file with the SEC within four business days following the date of the Special Meeting.
The information provided above in this “Question and Answer” format is for your convenience only and is merely a summary of the information contained in this Proxy Statement. We urge you to carefully read this entire Proxy Statement, including the documents we refer to in this Proxy Statement.
How many shares of Common Stock are outstanding?
As of March 14, 2025, there were 51,965,765 shares of Common Stock outstanding.
Our Board encourages stockholders to attend the Special Meeting. Whether or not you plan to attend, you are urged to submit your proxy. Prompt response will greatly facilitate arrangements for the meeting and your cooperation will be appreciated. Stockholders who attend the Special Meeting by logging in with their control number may vote their stock electronically at the meeting even though they may have sent in their proxies.
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PROPOSAL 1: APPROVAL OF THE YORKVILLE SHARE ISSUANCE PROPOSAL
At the Special Meeting, our stockholders will be asked to approve, for purposes of Nasdaq Listing Rule 5635(d), the issuance of shares of our Common Stock to Yorkville pursuant to the SEPA in excess of the Exchange Cap.
Background for the Yorkville Share Issuance Proposal
As previously disclosed, on October 30, 2024, the Company entered into the SEPA with Yorkville. Pursuant to the SEPA, the Company has the right, but not the obligation, to sell to Yorkville up to $50.0 million of Common Stock at the Company’s request any time during the commitment period commencing on November 13, 2024 (the “Effective Date”) and terminating on the first day of the month next following the 24 -month anniversary of the Effective Date. Each issuance and sale by the Company to Yorkville under the SEPA (an “Advance”) is subject to a maximum limit equal to (i) in respect of each Advance Notice (as defined in the SEPA), an amount equal to 100% of the aggregate volume traded of the Company’s Common Stock on Nasdaq for the five consecutive trading days immediately preceding an Advance Notice, and (ii) in respect of each Advance Notice deemed delivered pursuant to an Investor Notice (defined in the SEPA), the amount selected by Yorkville subject to limitations described herein. In addition, under the terms of the SEPA, Yorkville will provide a $2,000,000 advance to the Company pursuant to a convertible note, conditioned upon, among other things, obtaining stockholder approval of the Yorkville Share Issuance Proposal (the “Second Pre -paid Advance”).
The shares will be issued and sold to Yorkville at a per share price equal to, at the election of the Company as specified in the relevant Advance Notice: (i) 96% of the Market Price (as defined below) for any period commencing on the receipt of the Advance Notice by Yorkville and ending on 4:00 p.m. New York City time on the applicable Advance Notice date (the “Option 1 Pricing Period”), and (ii) 97% of the Market Price for any three consecutive trading days commencing on the Advance Notice date (the “Option 2 Pricing Period,” and each of the Option 1 Pricing Period and the Option 2 Pricing Period, a “Pricing Period”). “Market Price” is defined as, for any Option 1 Pricing Period, the daily volume weighted average price (“VWAP”) of the Common Stock on Nasdaq during the Option 1 Pricing Period, and for any Option 2 Pricing Period, the lowest daily VWAP of the Common Stock on Nasdaq during the Option 2 Pricing Period.
The Advances are subject to certain limitations, including that Yorkville cannot purchase any shares that would result in it beneficially owning more than 4.99% of the Company’s outstanding Common Stock at the time of an Advance or acquiring since the Effective Date under the SEPA more than 19.99% of the Company’s outstanding Common Stock as of the date of the SEPA. The Exchange Cap will not apply under certain circumstances, including, where the Company has obtained stockholder approval to issue in excess of the Exchange Cap in accordance with the rules of Nasdaq or such issuances do not require stockholder approval under Nasdaq’s “minimum price rule.” Additionally, if the total number of Common Stock traded on Nasdaq during the applicable Pricing Period is less than the Volume Threshold (as defined below), then the number of Common Stock issued and sold pursuant to such Advance Notice will be reduced to the greater of (a) 30% of the trading volume of the Common Stock on Nasdaq during the relevant Pricing Period as reported by Bloomberg L.P., or (b) the number of Common Stock sold by Yorkville during such Pricing Period, but in each case not to exceed the amount requested in the Advance Notice. “Volume Threshold” is defined as a number of Common Stock equal to the product of (a) the number of shares in the Advance Notice requested by the Company multiplied by (b) 0.30.
From November 13, 2024 through the close of business on March 14, 2025, the Company did not issue any shares of Common Stock pursuant to the SEPA. Additionally, the Company issued 297,160 shares (the “Commitment Shares”) of Common Stock to Yorkville in payment of a commitment fee pursuant to the terms of the SEPA.
The 297,160 shares of the Company’s Common Stock offered and sold to Yorkville under the SEPA from November 13, 2024 through the close of business on March 14, 2025 are not entitled to vote on the Yorkville Share Issuance Proposal in accordance with Nasdaq Listing Rule 5635(d).
The foregoing description of the SEPA is not complete and is qualified in its entirety by reference to the SEPA, a copy of which is filed Exhibit 10.1 to our Current Report on Form 8 -K filed with the SEC on November 4, 2024.
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Reasons for Seeking Stockholder Approval
Nasdaq Listing Rule 5635(d) requires us to obtain stockholder approval prior to the sale, issuance or potential issuance of Common Stock (or securities convertible into or exercisable for Common Stock) in connection with a transaction other than a public offering at a price less than the minimum price which either alone or together with sales by officers, directors or substantial stockholders of the company equals 20% or more of the Common Stock or 20% or more of the voting power outstanding before the issuance. Stockholder approval of this proposal will constitute stockholder approval for purposes of Nasdaq Listing Rule 5635(d).
Our Board has determined that the SEPA and our ability to issue the shares of Common Stock thereunder in excess of the Exchange Cap and to draw on the $2,000,000 Second Pre -paid Advance are in the best interests of the Company and its stockholders because the ability to sell shares of Common Stock to Yorkville and access the additional $2,000,000 Second Pre -paid Advance provides us with a reliable source of capital for general corporate purposes, which may include, but are not limited to, funding working capital, capital expenditures, operating expenses and the development of our products. Furthermore, the SEPA provides the Company with future flexibility to enhance its liquidity in an opportunistic and efficient manner.
We cannot predict the price of our Common Stock at any future date, and therefore cannot predict the number of shares of Common Stock to be issued under the SEPA or whether the applicable price for any Advance Notice will be greater than the minimum price under the Nasdaq Rules. Therefore, we are seeking stockholder approval under this proposal to issue shares of Common Stock in excess of the Exchange Cap, if necessary, to Yorkville under the terms of the SEPA.
Potential Consequences if the Yorkville Share Issuance Proposal is Not Approved
The failure of the Company’s stockholders to approve this proposal will prevent the Company from selling, at less than the minimum price, shares of Common Stock to Yorkville in excess of the Exchange Cap and drawing on the $2,000,000 Second Pre -paid Advance. However, it would be possible to sell shares to Yorkville in excess of the Exchange Cap if the sale of shares covered by any Advance Notice is equal to or greater than $4.31 per share. As of the close of business on March 20, 2025, the price of our Common Stock was $0.4583 per share.
Furthermore, if we are limited in our ability to raise additional capital under the SEPA, we may not be able to execute on our strategic plans or fund our operations, and we may need to seek alternative sources of capital to fund our operations, which may not be available to us on favorable terms, or at all. We can provide no assurance that we would be successful in raising funds in the future or that such funds could be raised at prices that would not create substantial dilution for our existing stockholders. If we are unable to raise additional capital, then we may have difficulty entering into liquidity transactions, which would lead to a decrease in revenues and adversely affect our operations and business plans. Accordingly, our Board believes that providing the Company the flexibility to issue shares of Common Stock in excess of the Exchange Cap is advisable and in the best interests of the Company and our stockholders.
Effect on Current Stockholders
If approved, this proposal will provide for the issuance of up to an aggregate of approximately $50.0 million of shares of Common Stock following registration with the SEC. For example, based on a closing stock price of $0.4583 per share as of March 20, 2025, up to approximately 109.1 million shares of Common Stock could be issued following approval of this proposal, however such number would be limited by the number of authorized shares of Common Stock from time to time, which was 110 million as of March 14, 2025, and of which approximately 29,184,235 million were available and unreserved for future issuance as of such date. The issuance of shares of Common Stock to Yorkville will dilute the percentage ownership interest of all stockholders, could dilute the book value per share of the Common Stock and will increase the number of the Company’s outstanding shares, which could cause the market price of our Common Stock to decrease. Depressed trading prices of our Common Stock could further impair our ability to raise sufficient capital from our operations to carry on our business in the ordinary course.
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The approval of the Yorkville Share Issuance Proposal requires the affirmative vote of a majority of the votes cast at the Special Meeting. Abstentions and broker non -votes will have no effect on the outcome of the Yorkville Share Issuance Proposal. The 297,160 shares of the Company’s Common Stock offered and sold to Yorkville under the SEPA from November 13, 2024, through the close of business on the Record Date (including the Commitment Shares) are not entitled to vote on the Yorkville Share Issuance Proposal in accordance with Nasdaq Listing Rule 5635(d).
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The Board unanimously recommends that you vote “FOR” the
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PROPOSAL 2: APPROVAL OF THE ADJOURNMENT PROPOSAL
Background of and Reasons for the Adjournment Proposal
The Board believes that if the number of shares of the Company’s Common Stock is insufficient to approve the Yorkville Share Issuance Proposal, it is in the best interests of the stockholders to enable the Board to continue to seek to obtain a sufficient number of additional votes to approve the Yorkville Share Issuance Proposal.
In the Adjournment Proposal, we are asking stockholders to authorize the holder of any proxy solicited by the Board to vote in favor of adjourning or postponing the Special Meeting or any adjournment or postponement thereof. If our stockholders approve this proposal, we could adjourn or postpone the Special Meeting, and any adjourned session of the Special Meeting, to use the additional time to solicit additional proxies in favor of the Yorkville Share Issuance Proposal.
The approval of the Adjournment Proposal requires the affirmative vote of a majority of the votes cast at the Special Meeting. Abstentions and broker non -votes will have no effect on the outcome of the Adjournment Proposal.
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The Board unanimously recommends that you vote “FOR” the
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SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The following table sets forth, as of March 14, 2025, the number of shares of Common Stock beneficially owned by (i) each person who is known by us to be the beneficial owner of more than five percent of our issued and outstanding shares of Common Stock (ii) each of our officers and directors; and (iii) all of our officers and directors as a group. There were 51,965,765 shares of Common Stock outstanding as of March 14, 2025.
Beneficial ownership is determined according to the rules and regulations of the SEC. A person is a “beneficial owner” of a security if that person has or shares “voting power,” which includes the power to vote or to direct the voting of the security, or “investment power,” which includes the power to dispose of or to direct the disposition of the security or has the right to acquire such powers within 60 days.
Unless otherwise indicated in the footnotes to the following table and subject to applicable community property laws, we believe that all persons named in the table below have, or may be deemed to have, sole voting and investment power with respect to all Common Stock to be beneficially owned by them. Shares that a person has the right to acquire within 60 days of March 14, 2025, are deemed issued and outstanding for purposes of computing the percentage ownership of the person holding such rights, but are not deemed issued and outstanding for purposes of computing the percentage ownership of any other person, except with respect to the percentage ownership of all directors and executive officers as a group.
Except as otherwise noted below, the address for persons or entities listed in the table is c/o Abpro Holdings, Inc., 68 Cummings Park Drive, Woburn, MA 01801.
