PROPOSAL 2
APPROVAL OF CERTIFICATE OF AMENDMENT OF OUR SECOND AMENDED AND RESTATED CERTIFICATE OF INCORPORATION TO INCREASE THE TOTAL NUMBER OF
AUTHORIZED SHARES OF COMMON STOCK
Overview
Our
board of directors believes that it is advisable and in Clarus best interests and in the best interests of its stockholders to amend our Second Amended and Restated Certificate of Incorporation, or certificate of incorporation, to increase the
total number of authorized shares of common stock from 125,000,000 shares to 500,000,000 shares. On April 26, 2022, our board of directors adopted resolutions approving the proposed certificate of amendment of the Certificate of incorporation,
or the Common Increase Certificate, in substantially the form attached as Appendix A hereto. At that time, our board of directors declared the proposed Common Increase Certificate to be advisable and in the best
interests of Clarus and its stockholders and is accordingly submitting the proposed Common Increase Certificate for approval by our stockholders.
If
stockholders approve this Proposal No. 2, we expect to file the Common Increase Certificate with the Secretary of State of the State of Delaware to increase the number of authorized shares of our common stock as soon as practicable following
stockholder approval. In this regard, upon filing of the Common Increase Certificate with the Secretary of State of the State of Delaware, the first sentence of introductory text of Article IV, immediately after the heading Capital
Stock in Article IV of the Certificate of incorporation would be amended as follows, with the proposed additions underlined and proposed deletions stricken through:
The total number of shares of capital stock which the Corporation shall have authority to issue is 510,000,000 of which
(i) 500,000,000 shares shall be a class designated as common stock, par value $0.0001 per share (the Common Stock), and (ii) 10,000,000 shares shall be a class designated as undesignated preferred stock, par value $0.0001 per
share (the Undesignated Preferred Stock).
As of the close of business on April 27, 2022, following completion of our underwritten
public offering, of our 125,000,000 authorized shares of common stock, there were 52,020,731 shares of common stock issued and outstanding. In addition to the 52,020,731 shares of common stock outstanding on April 27, 2022, there were
46,457,834 shares reserved for issuance pursuant to outstanding warrants, and 5,023,791 shares of common stock reserved for issuance under our various equity compensation plans.
The proposed Common Increase Certificate would increase the number of shares of common stock that we are authorized to issue from 125,000,000 shares of common
stock to 500,000,000 shares of common stock, representing an increase of 125,000,000 shares of authorized common stock, with a corresponding increase in the total authorized capital stock, which includes common stock and preferred stock, from
135,000,000 shares to 510,000,000 shares.
Reasons for the Increase in Authorized Shares
As of the date of this proxy statement, the board of directors has no definitive plans, arrangements or understandings to issue any of the additional shares of
common stock that would be available as a result of the approval of the proposed Common Increase Certificate. Our board of directors believes it is appropriate to increase our authorized shares of common stock so that we have shares of common stock
available to provide additional flexibility to promptly and appropriately use our common stock for business and financial purposes in the future, as well as to have sufficient shares available to provide appropriate equity incentives for our
employees and other eligible service providers. The additional shares of common stock, if approved, may be used for various purposes without further stockholder approval. These purposes may include raising capital; providing equity incentives to
employees, officers, directors, consultants and/or advisors; establishing collaborative or partnering arrangements with other companies; expanding our business through the acquisition of other businesses, products or technologies; and other
purposes.
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