Zage and Fu Bin Lu respond to Grindr’s decision to reject their proposal

George Raymond Zage Ill and James Fu Bin Lu, the Proposing Shareholders, who along with affiliated entities beneficially own in aggregate more than 60% of the outstanding shares of common stock of Grindr (GRND) responded to the Grindr Special Committee of its Board of Directors’ decision to cease engagement with the Proposing Shareholder’s non-binding take-private proposal to acquire Grindr for $18.00 per share. The letter said, “The Special Committee indicated that this determination was made due to uncertainty around the financing for the Proposal. Over the past several weeks, there was regular engagement and negotiation around the signing of a confidentiality agreement to allow our team of financial advisors to conduct confirmatory due diligence in order to finalize a committed debt facility for the going private transaction. The Proposing Shareholders secured significant expressions of interest, in multiple cases unsolicited, to participate in acquisition financing, including multiple highly confident letters as well as contributions in the form of senior debt, hybrid securities and equity. We also indicated to the Special Committee a willingness for the acquisition to be subject to obtaining the approval of a majority of the disinterested shareholders in this take-private transaction”. And concluded, “As a result of these considerations, and the feedback from the Special Committee and their termination of engagement on the Proposal, we are withdrawing the Proposal. Mr. Zage’s intention, in lieu of a bid to privatize the Company, is to continue to purchase additional shares of the Company in the market. This will be subject to the Company’s existing trading policies and approvals, and subject to trading windows. Mr. Zage will also strongly recommend to the Company’s management and board of directors to take all necessary steps to materially increase the size of the Company’s share repurchase plans and more broadly its commitment to providing returns for shareholders, which at some point may also include dividends.”