Focus Impact Acquisition Corp. Warrant Preliminary Proxy Statement
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☒ | Preliminary Proxy Statement |
☐ | Confidential, for use of the Commission Only (as permitted by Rule 14a-6(e)(2)) |
☐ | Definitive Proxy Statement |
☐ | Definitive Additional Materials |
☐ | Soliciting Material Pursuant to §240.14a-12 |
☒ | No Fee Required |
☐ | Fee paid previously with preliminary materials. |
☐ | Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules 14a-6(i)(1) and 0-11 |
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1. | To approve, in accordance with Nasdaq Listing Rule 5635(d), the issuance of Common Shares upon the conversion of Convertible Promissory Notes issuable pursuant to the Securities Purchase Agreement entered into between the Company and Helena Global Investment Opportunities 1 Ltd. (“Helena”), dated July 18, 2025 (the “First Issuance Proposal”); |
2. | To approve, in accordance with Nasdaq Listing Rule 5635(d), the issuance of Common Shares pursuant to the Purchase Agreement between the Company and Helena dated October 29, 2024, as amended on August 4, 2025 (the “Second Issuance Proposal”); |
3. | To approve one or more adjournments of the Special Meeting, if necessary or appropriate, to solicit additional proxies in favor of the First Issuance Proposal and the Second Issuance Proposal if there are not sufficient votes at the Special Meeting to approve and adopt the First Issuance Proposal and the Second Issuance Proposal (the “Adjournment Proposal”); and |
4. | To conduct any other business properly brought before the Special Meeting. |
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PROXY STATEMENT | 1 | ||
QUESTIONS AND ANSWERS ABOUT THESE PROXY MATERIALS AND VOTING | 1 | ||
PROPOSAL 1 TO APPROVE, IN ACCORDANCE WITH NASDAQ LISTING RULE 5635(D), THE ISSUANCE OF COMMON SHARES UPON THE CONVERSION OF CONVERTIBLE PROMISSORY NOTES ISSUABLE PURSUANT TO THE SECURITIES PURCHASE AGREEMENT ENTERED INTO BETWEEN THE COMPANY AND HELENA GLOBAL INVESTMENT OPPORTUNITIES 1 LTD. (“HELENA”), DATED JULY 18, 2025 (THE “FIRST ISSUANCE PROPOSAL”) | 7 | ||
PROPOSAL 2 TO APPROVE, IN ACCORDANCE WITH NASDAQ LISTING RULE 5635(D), THE ISSUANCE OF COMMON SHARES PURSUANT TO THE PURCHASE AGREEMENT BETWEEN THE COMPANY AND HELENA DATED OCTOBER 29, 2024, AS AMENDED ON AUGUST 4, 2025 (THE “SECOND ISSUANCE PROPOSAL”) | 10 | ||
PROPOSAL 3 TO APPROVE ONE OR MORE ADJOURNMENTS OF THE SPECIAL MEETING, IF NECESSARY OR APPROPRIATE, TO SOLICIT ADDITIONAL PROXIES IN FAVOR OF THE FIRST ISSUANCE PROPOSAL AND SECOND ISSUANCE PROPOSAL IF THERE ARE NOT SUFFICIENT VOTES AT THE SPECIAL MEETING TO APPROVE AND ADOPT THE FIRST ISSUANCE PROPOSAL AND THE SECOND ISSUANCE PROPOSAL (THE “ADJOURNMENT PROPOSAL”) | 13 | ||
RISK FACTORS | 14 | ||
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED SHAREHOLDER MATTERS | 19 | ||
HOUSEHOLDING OF PROXY MATERIALS | 21 | ||
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• | To approve, in accordance with Nasdaq Listing Rule 5635(d), the issuance of Common Shares upon the conversion of Convertible Promissory Notes issuable pursuant to the Securities Purchase Agreement entered into between the Company and Helena Global Investment Opportunities 1 Ltd. (“Helena”), dated July 18, 2025 (the “First Issuance Proposal”); |
• | To approve, in accordance with Nasdaq Listing Rule 5635(d), the issuance of Common Shares pursuant to the Purchase Agreement between the Company and Helena dated October 29, 2024, as amended on August 4, 2025 (the “Second Issuance Proposal”); and |
• | To approve one or more adjournments of the Special Meeting, if necessary or appropriate, to solicit additional proxies in favor of the First Issuance Proposal or Second Issuance Proposal if there are not sufficient votes at the special meeting to approve and adopt the First Issuance Proposal or Second Issuance Proposal (the “Adjournment Proposal”). |
• | To vote online during the Special Meeting, you may vote using the link that will be provided on the virtual meeting screen, or you may visit www.virtualshareholdermeeting.com/DEVS2025SM2 while the polls are open. In order to vote during the Special Meeting, you will need your virtual control number, which will be on your proxy card. |
• | To vote using the proxy card, simply complete, sign and date the enclosed proxy card and return it promptly in the envelope provided. If you return your signed proxy card to us before the Special Meeting, we will vote your shares as you direct. |
• | To vote over the telephone, dial toll-free 1-800-690-6903 using a touch-tone phone and follow the recorded instructions. You will be asked to provide the virtual control number from your proxy card. Your telephone vote must be received by 11:59 p.m. Eastern Time on Thursday September 25, 2025 to be counted. |
• | To vote through the internet, go to www.proxyvote.com to complete an electronic proxy card. Please have your enclosed proxy card available when you access the voting website and follow the prompts to vote your shares. Your internet vote must be received by 11:59 p.m. Eastern Time on Thursday September 25, 2025 to be counted. |
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• | “For” the First Issuance Proposal; |
• | “For” the Second Issuance Proposal; and |
• | “For” the Adjournment Proposal. |
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• | You may submit another properly completed proxy card with a later date. |
• | You may grant a subsequent proxy by telephone or through the internet. |
• | You may send a timely written notice that you are revoking your proxy to DevvStream Corp. Attention: Secretary at 2108 N St., Suite 4254, Sacramento, California 95816. |
• | You may attend the Special Meeting virtually and vote online. Simply attending the meeting virtually will not, by itself, revoke your proxy. |
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1. | the accuracy of the Company’s representations and warranties in the ELOC Agreement; |
2. | there is an effective Registration Statement pursuant to which Helena is permitted to utilize the prospectus thereunder to resell the Common Shares purchased by Helena; |
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3. | the Company shall have obtained all permits and qualifications required by any applicable state for the offer and sale of all the Common Shares issuable pursuant to such advance notice, or shall have the availability of exemptions therefrom; |
4. | no material adverse effect shall have occurred or be continuing; |
5. | the Company shall have performed, satisfied and complied in all material respects with all covenants, agreements and conditions required by the ELOC Agreement to be performed, satisfied or complied with by the Company including, without limitation, the delivery of all Common Shares issuable pursuant to all previously delivered advance notices; |
6. | no statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or governmental authority of competent jurisdiction that prohibits or directly, materially and adversely affects any of the transactions contemplated by the ELOC Agreement; |
7. | the Common Shares are quoted for trading on the Nasdaq and all of the Common Shares issuable pursuant to such advance notice are listed or quoted for trading on the Nasdaq; |
8. | the Company shall not have received any written notice that is then still pending threatening the continued quotation of the Common Shares on the Nasdaq; |
9. | unless waived by Helena, the Company shall not then be party to any variable rate transaction; and |
10. | there shall be a sufficient number of authorized but unissued and otherwise unreserved Common Shares for the issuance of all of the shares issuable pursuant to such advance notice. |
a. | the Company breaches any representation or warranty in any material respect, or breaches any covenant or other term or condition under the ELOC Agreement or the related registration rights agreement in any material respect, and except in the case of a breach of a covenant which is reasonably curable, only if such breach continues for a period of at least three (3) consecutive business days; |
b. | if any person commences a proceeding against the Company pursuant to or within the meaning of any bankruptcy law for so long as such proceeding is not dismissed; |
c. | if the Company is at any time insolvent, or, pursuant to or within the meaning of any bankruptcy law, (i) commences a voluntary case, (ii) consents to the entry of an order for relief against it in an involuntary case, (iii) consents to the appointment of a custodian of it or for all or substantially all of its property, or (iv) makes a general assignment for the benefit of its creditors or (v) the Company is generally unable to pay its debts as the same become due; |
d. | a court of competent jurisdiction enters an order or decree under any bankruptcy law that (i) is for relief against the Company in an involuntary case, (ii) appoints a custodian of the Company or for all or substantially all of its property, or (iii) orders the liquidation of the Company or any subsidiary for so long as such order, decree or similar action remains in effect; or |
e. | if at any time the Company is not eligible or is unable to transfer its Common Shares to Helena. |
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• | require us to dedicate a substantial portion of our cash flow from operations to payments on our indebtedness; |
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• | limit, among other things, our ability to borrow additional funds and otherwise raise additional capital, and our ability to conduct acquisitions, joint ventures or similar arrangements, as a result of our obligations to make such payments and comply with the restrictive covenants in the indebtedness; |
• | limit our flexibility in planning for, or reacting to, changes in our businesses and the industries in which we operate; |
• | increase our vulnerability to general adverse economic and industry conditions; and |
• | place us at a competitive disadvantage compared to our competitors that have lower fixed costs. |
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• | each person known by the Company to be the beneficial owner of more than 5% of the Company’s issued and outstanding common shares; |
• | each of Company’s executive officers and directors; and |
• | all of the Company’s executive officers and directors as a group. |
Name and Address of Beneficial Owners | Number of Common Shares | % of Total Voting Power | ||||
Wray Thorn(8) | — | — | ||||
Carl Stanton(8) | — | — | ||||
Sunny Trinh(1) | 1,029,677 | 2.99% | ||||
Stephen Kukucha(2) | 64,991 | * | ||||
Chris Merkel(3) | 44,798 | * | ||||
David Goertz(4) | 24,188 | * | ||||
Michael Max Buhler(5) | 32,116 | * | ||||
Jamila Piracci(6) | 38,998 | * | ||||
All directors and officers as a group (nine individuals) | 1,234,768 | 3.59% | ||||
Five Percent Holders: | ||||||
Devvio, Inc.(7) | 7,176,424 | 21.41% | ||||
Focus Impact Sponsor, LLC(8) | 21,604,619 | 43.65% | ||||
Crestmont Investments LLC(9) | 2,000,000 | 5.98% | ||||
* | Less than 1% |
1. | Consists of 887,015 restricted stock units granted on December 24, 2021 and March 14, 2022. 10% of the restricted stock units vested on January 17, 2023, and 15% of the restricted stock units vest every six months thereafter for a period of 36 months. Also consists of 39,319 restricted stock units granted on July 30, 2024. 10% of the restricted stock units vest on the six-month anniversary of the grant date and 15% of the restricted stock units vest every six months thereafter for a period of 36 months. Also, consists of 305,867 restricted stock units granted on March 26, 2025. 214,107 restricted stock units vested on the grant date, a further 45,880 restricted stock units vest on July 17, 2025 and January 17, 2026. Each restricted stock unit represents the right to receive, at settlement, one Common Share. |
2. | Consists of 45,880 stock options granted on March 1, 2022 and of 30,586 options granted on October 14, 2022. 10% of the options vested on January 17, 2023 and 15% of the options vest every six months thereafter. |
3. | Consists of 45,880 restricted stock units granted on December 24, 2021. 10% of the restricted stock units vested on January 17, 2023 and 15% of the restricted stock units vest every six months thereafter. Also consists of 23,206 restricted stock units granted on July 30, 2024. 10% of the restricted stock units vest on the six-month anniversary of the grant date and 15% of the restricted stock units vest every six months thereafter for a period of 36 months. Each restricted stock unit represents the right to receive, at settlement, one Common Share. Also, consists of 350,000 stock options granted on March 26, 2025. 33.3% of the options vest on the one year anniversary of the grant, 2.78% vest each month thereafter for a period of 36 months. |
4. | Consists of 30,586 restricted stock units granted on December 24, 2021. 10% of the restricted stock units vested on January 17, 2023 and 15% of the restricted stock units vest every six months thereafter. These restricted stock units were granted to DJG Enterprises Inc. (“DJG”). |
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5. | Consists of 45,880 stock options granted on May 15, 2023. 10% of the options vested on May 15, 2023 and 15% of the options vest every six months thereafter. |
6. | Consists of 45,880 stock options granted on October 14, 2022. 10% of the options vested on January 17, 2023 and 15% of the options vest every six months thereafter. |
7. | Consists of (i) 7,111,428 common shares issued to Devvio, Inc. (“Devvio”) in exchange for multiple voting company shares of DevvStream in connection with the closing of the Business Combination and (ii) 76,467 stock options granted on January 17, 2022. 10% of the options vested on January 17, 2023 and 15% of the options vest every six months thereafter. The business address of Devvio is 6300 Riverside Plaza Ln NW, Suite 100, Albuquerque, NM 87120. |
8. | Consist of (i) 5,572,900 Common Shares held of record by Focus Impact Sponsor, LLC, the reporting person, (ii) 10,855,040 Common Shares issuable upon the exercise for cash of 11,200,000 private placement warrants held by the reporting person, each whole warrant is exercisable for 0.9692 Common Shares upon payment of $1.52 per share or can be exercised on a cashless basis (the “Private Placement Warrants”), as further described in the warrant agreement, dated November 1, 2021, by and between the Company (as successor of Focus Impact Acquisition Corp.) and Continental Stock Transfer & Trust Company, as warrant agent (the “Warrant Agreement”), and (iii) 5,176,679 Common Shares issuable upon the conversion of several Convertible Notes (as defined below) at a floor prices of $0.867 per share and $2.00 per share (subject to adjustment and assuming no conversion of any unpaid and accrued interest under the Convertible Notes) (the “Convertible Notes”). The reporting person, Focus Impact Sponsor, LLC, is controlled by a four-member board of managers composed of Carl Stanton, Ernest Lyles, Howard Sanders and Wray Thorn. Each manager has one vote, and the approval of a majority of the managers is required to approve an action of the reporting person. Under the so-called “rule of three,” if voting and dispositive decisions regarding an entity’s securities are made by three or more individuals, and a voting or dispositive decision requires the approval of a majority of those individuals, then none of the individuals is deemed a beneficial owner of the entity’s securities. This is the situation with regard to the reporting person. Based upon the foregoing analysis, no individual manager of the reporting person exercises voting or dispositive control over any of the securities held by the reporting person, even those in which such manager holds a pecuniary interest. Accordingly, none of them will be deemed to have or share beneficial ownership of such securities. The business address of the reporting person is 1345 Avenue of the Americas, 33rd Floor, New York, New York, 10105. sec.gov/Archives/edgar/data/1854480/000114036125004334/xslSCHEDULE_13G_X01/primary_doc.xml |
9. | Represents Common Shares owned by Crestmont Investments LLC. Mr. David Beach is the majority owner of Crestmont. As a result, Mr. Beach may be deemed to beneficially own the 2,000,000 Common Shares of the Issuer owned by Crestmont. The address and principal business office of the Reporting Persons is 745 Fifth Avenue, Suite 500, New York, NY 10151. |
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☐ For | ☐ Against | ☐ Abstain | ||||||||||
☐ For | ☐ Against | ☐ Abstain | ||||||||||
☐ For | ☐ Against | ☐ Abstain | ||||||||||
Shares Held: | ||||||
Signature of Shareholder | ||||||
Signature of Shareholder (If held jointly) | ||||||
Dated: | ||||||