Free Writing Prospectus
Dated September 26, 2022
Filed Pursuant to Rule 433
Registration No. 333-267071
On September 26, 2022, Eargo, Inc. (“Eargo” or the “Company”) first began to send the following email to its stockholders and persons who have opted in to receive the Company's news alerts as part of its proxy
solicitation efforts in connection with Eargo’s 2022 Annual Meeting of Stockholders. Certain information linked within this communication has been previously filed under cover of Free Writing Prospectus.
Subject: A Message From Eargo CEO Christian Gormsen
A transcript of the above video can be viewed at the bottom of this email.
I am reaching out to you because your vote is critical.
As I explained in the video you just watched, we need the approval of stockholders on two key proposals in order to conduct our proposed rights offering and fulfill our agreement with Patient Square Capital. Eargo
and its Board of Directors urge stockholders to vote FOR Proposal Five and Proposal Six.
If the Company does not receive a majority stockholder vote for proposals five and six, we will be unable to complete the Rights Offering and, as a result, be in default under our Note Purchase Agreement with Patient Square Capital. A default
could result in stockholders losing all or substantially all of their investment in our common stock. We need stockholders to vote FOR the proposals to help ensure this does not happen.
We urge you to vote as soon as possible ahead of our 2022 Annual Meeting of Stockholders to be held on October 12, 2022 at 11 A.M. Pacific Time. You can vote easily using the voting link within this email.
For assistance with voting your shares you can call Morrow Sodali, our proxy solicitor, at (877) 787-9239, or send a message to EAR.firstname.lastname@example.org.
Please visit our website here for more information on the rights offering, Proposals Five and Six, the other proposals and how to vote. We also urge all stockholders to read our Definitive Proxy Statement, which was mailed to all stockholders on
or about September 14, 2022 and is available on our investor relations website.
Thank you so much for your time and continued support of Eargo.
Have questions or need help voting your shares? Read on for more information, or call or e-mail Morrow Sodali, EAR’s proxy solicitor, at (800) 662-5200 or
Hi, I’m Christian Gormsen, President and CEO of Eargo. And I’m excited to speak with you today about our annual meeting on October 12th and the importance that you, as a stockholder, vote on a number of critical proposals that are key to the
Company’s future. Specifically, we urge stockholders to vote FOR Proposals Five and Six.
As a brief background for Proposals Five and Six, in June of 2022, we closed a $100 million convertible note financing with Patient Square Capital that is providing critical capital allowing us to focus on our core business initiatives.
The notes are a form of debt that must be repaid or converted. That debt is secured against the Company’s assets. The Note Purchase Agreement provides that we must complete what is called a Rights Offering by December 24, 2022. The proceeds
from the Rights Offering will be used to repay Patient Square’s notes at a premium, and any notes not repaid would be converted into shares of the Company. Importantly, the rights offering gives our existing stockholders the opportunity to purchase
their pro rata share of 375 million newly issued shares of our common stock at a purchase price of $0.50 per share. The Rights Offering will allow stockholders to participate in financing the Company and avoid a reduction in their percentage
shareholdings of the Company.
Here’s why - Depending on the level of stockholder participation in, and the timing of, the offering, Patient Square may end up owning as much as 90.5% of the Company if no stockholders participate in the offering, or not own any of the Company if
stockholders purchase all 375 million shares.
Following the completion of the Rights Offering, the Company will have no debt on its balance sheet.
Here’s where your vote is critical – in order to complete the Rights Offering, we need the approval of stockholders on two key proposals. Eargo and its Board of Directors urge stockholders to vote FOR Proposal Five and Proposal Six.
If the Company does not receive a majority stockholder vote for proposals five and six, we will be unable to complete the Rights Offering and, as a result, be in default under our Note Purchase Agreement with Patient Square. In that scenario,
Patient Square could demand immediate repayment of the Notes. Since we do not believe we would have the cash to make that repayment, Patient Square could begin seizing the company’s assets and stockholders would likely lose all or substantially all
of their investment in our common stock. We need stockholders to vote FOR the proposals to help ensure this does not happen.
Please see our voting web site for more information on the Rights Offering, Proposals Five and Six, the other proposals and how to vote.
For more information, including a multi-scenario analysis of possible outcomes, please review our Definitive Proxy Statement, which was mailed to all stockholders on or about September 14, 2022 and is available on our investor relations website.
Thank you so much for your time and continued support of Eargo.
Cautionary Statement Regarding Forward-Looking Statements
This communication contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of
historical fact contained in this communication are forward-looking statements, including statements regarding the investment by Patient Square Capital, including the conversion of the notes, the terms of the anticipated rights offering, including
the timing of the anticipated rights offering, or if it will occur at all, stockholder participation in the offering and the results of certain related proposals to be voted on by stockholders. Forward-looking statements are not guarantees of future
performance and are subject to risks, uncertainties and assumptions that could cause actual results and events to differ materially from those anticipated, including, but not limited to, risks and uncertainties related to the conversion of the notes
issued pursuant to the Patient Square Capital investment; the timing of the anticipated rights offering, or if it will occur at all, stockholder participation in the offering and the results of certain related proposals to be voted on by
stockholders. These and other risks are described in greater detail under the section titled “Risk Factors” contained in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other filings with the U.S. Securities and Exchange
Commission (the “SEC”). Any forward-looking statements in this communication are made pursuant to the Private Securities Litigation Reform Act of 1995, as amended, are based on current expectations, forecasts and assumptions, and speak only as of
the date of this communication. Except as required by law, the Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
Additional Information and Where to Find It
The Company has filed a definitive proxy statement (as amended, the “Definitive Proxy Statement”) with the SEC for the Annual Meeting to which this communication relates and has mailed the Definitive Proxy Statement and other proxy solicitation
materials to record holders as of September 6, 2022. Before you vote, you should read the Definitive Proxy Statement and other documents the Company has filed with the SEC for more complete information about the Company, the 2022 Annual Meeting and
the proposals to be voted on. The Company has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement
and other documents the Company has filed with the SEC for more complete information about the Company and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, you may obtain copies
of the Definitive Proxy Statement and the other proxy solicitation materials, including a replacement proxy card, as well as the prospectus, by contacting Morrow Sodali, the Company’s proxy solicitor and the information agent for the offering, at:
Morrow Sodali LLC
333 Ludlow Street
5th Floor, South Tower
Stamford, Connecticut 06902
Individuals call toll-free: (800) 662-5200
Banks and Brokerage Firms, please call (203) 658-9400
Participants in the Solicitation
The Company and its directors and executive officers may be deemed to be participants in the solicitation of proxies from the holders of the Company’s common stock in respect of the proposals to be voted on by stockholders at the Company’s Annual
Meeting. Information about the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, is set forth in the Definitive Proxy Statement for the Annual Meeting, which was filed
with the SEC on September 13, 2022, and in other documents filed by the Company, including on behalf of such individuals, with the SEC.
No Offer or Solicitation
This communication shall not constitute (i) a solicitation of a proxy, consent or authorization with respect to any securities or in respect of the proposed rights offering or (ii) an offer, nor a solicitation of an offer, of the sale or purchase
of securities, nor shall any securities of the Company be offered or sold in any jurisdiction in which such an offer, solicitation or sale would be unlawful. It is an outline of matters for discussion only. Neither the SEC nor any state securities
commission has approved or disapproved of the transactions contemplated hereby or determined if this document is truthful or complete. Any representation to the contrary is a criminal offense. In connection with the proposed rights offering
transaction discussed herein and the stockholder votes related thereto, a registration statement on Form S-1 (File No. 333-267071) (the “Registration Statement”) was filed with the SEC on August 25, 2022 and the Definitive Proxy Statement related to
the Company’s 2022 Annual Meeting of Stockholders to be held on October 12, 2022 was filed with the SEC on September 13, 2022. The Company intends to file other relevant materials with the SEC in connection with the proposals to be voted on by the
stockholders. Stockholders of the Company are urged to read the Registration Statement and the documents incorporated by reference therein and the Definitive Proxy Statement before making any voting or investment decision with respect to the
stockholder proposals and the proposed rights offering, respectively, because they will contain important information regarding such proposals and the proposed rights offering transaction. You should not construe the contents of this communication
as legal, tax, accounting or investment advice or a recommendation. You should consult your own counsel and tax and financial advisors as to legal and related matters concerning the matters described herein.