Purplex stockholders approve NOL charter amendment and rights plan to protect $238M tax assets

Purple Innovation, Inc.

• Stockholders ratified NOL Rights Plan and approved charter amendment to restrict transfers exceeding 4.9% ownership threshold.
• NOL carryforwards of approximately $238 million protected under Section 382 to avoid ownership change limitations.
• Vote results: 71,911,076 for charter amendment, 71,896,005 for rights plan ratification; fewer than 6.1 million against each.
• Amendment voids prohibited transfers, requiring excess shares to be sold by the transfer agent in arm's-length transactions.
• Rights plan triggers significant dilution for any acquirer exceeding the 4.9% (or applicable) ownership threshold.