Exhibit 5.1
|
Chrysler
Center
666
Third Avenue
New
York, NY 10017
212 935
3000
212 983
3115 fax
www.mintz.com
|
October 16, 2018
DropCar, Inc.
1412 Broadway, Suite 2105
New York, New York 10018
Ladies and Gentlemen:
We
have acted as legal counsel to DropCar, Inc., a Delaware
corporation (the “Company”), in connection with the
preparation and filing with the Securities and Exchange Commission
(the “Commission”) of a Registration Statement on Form
S-3 (the “Registration Statement”), pursuant to which
the Company is registering under the Securities Act of 1933, as
amended (the “Securities Act”), the
following:
i.
common stock,
$0.0001 par value per share (the “Common
Stock”);
ii.
preferred stock,
$0.0001 par value per share (the “Preferred
Stock”);
iii.
senior debt
securities, in one or more series (the “Senior Debt
Securities”), which may be issued pursuant to an indenture to
be dated on or about the date of the first issuance of Senior Debt
Securities thereunder, by and between the Company and a trustee to
be selected by the Company (the “Senior
Indenture”);
iv.
subordinated debt
securities, in one or more series (the “Subordinated Debt
Securities” and, together with the Senior Debt Securities,
the “Debt Securities”), which may be issued pursuant to
an indenture to be dated on or about the date of the first issuance
of Subordinated Debt Securities thereunder, by and between the
Company and a trustee to be selected by the Company (the
“Subordinated Indenture”);
v.
warrants to
purchase Common Stock, Preferred Stock and/or Debt Securities (the
“Warrants”), which may be issued under warrant
agreements, to be dated on or about the date of the first issuance
of the applicable Warrants thereunder, by and between the Company
and a warrant agent to be selected by the Company (each, a
“Warrant Agreement”);
vi.
rights to purchase
Common Stock, Preferred Stock or Debt Securities (the
“Rights”), which may be issued pursuant to a rights
agreement and certificates issued thereunder, to be dated on or
about the date of the first issuance of the applicable Rights
thereunder, by and between the Company and a rights agent to be
selected by the Company (each, a “Rights
Agreement”);
units
comprised of one or more Debt Securities, shares of Common Stock,
Preferred Stock, Rights, and Warrants, in any combination (the
“Units”), which may be issued under unit agreements, to
be dated on or about the date of the first issuance of the
applicable Units thereunder, by and between the Company and a unit
agent to be selected by the Company (each, a “Unit
Agreement”); and
vii.
up to 1,560,696 shares of Common Stock
issuable upon the exercise of certain “reload” warrants
(the “Series J
Warrants”) issued by the Company pursuant to the terms
of a repricing offer letter, dated August 31, 2018, by and among
the Company and holders of the Company’s outstanding Series
H-4 warrants to purchase shares of Common Stock.
The Common Stock, the Preferred Stock, the Debt
Securities, the Warrants, the Rights and the Units are collectively
referred to herein as the “Securities.” The
Registration Statement relates to the registration of the
Securities to be offered and sold by the Company from time to time
on a delayed or continuous basis pursuant to Rule 415 under the
Securities Act. The maximum aggregate public offering price of the
Securities being registered is $50,000,000. This opinion is being rendered in connection
with the filing of the Registration Statement with the Commission.
In addition, the Registration Statement registers the shares of
Common Stock issuable upon the exercise of the Series J Warrants.
All capitalized terms used herein and not otherwise defined shall
have the respective meanings given to them in the Registration
Statement.
In
connection with this opinion, we have examined the Company’s
Amended and Restated Certificate of Incorporation and Amended and
Restated Bylaws, each as currently in effect; such other records of
the corporate proceedings of the Company and certificates of the
Company’s officers as we have deemed relevant; and the
Registration Statement and the exhibits thereto.
In
our examination, we have assumed the genuineness of all signatures,
the legal capacity of natural persons, the authenticity of all
documents submitted to us as originals, the conformity to original
documents of all documents submitted to us as certified or
photostatic copies and the authenticity of the originals of such
copies.
In
our capacity as counsel to the Company in connection with such
registration, we are familiar with the proceedings taken and
proposed to be taken by the Company in connection with the
authorization and issuance of the Securities and the shares of
Common Stock issuable upon the exercise of the Series J Warrants.
For purposes of this opinion, we have assumed that such proceedings
will be timely and properly completed, in accordance with all
requirements of applicable federal and Delaware laws, in the manner
presently proposed.
The
opinions set forth below are subject to the following exceptions,
limitations and qualifications: (i) the effect of bankruptcy,
insolvency, reorganization, fraudulent conveyance, moratorium or
other similar laws now or hereafter in effect relating to or
affecting the rights and remedies of creditors; (ii) the
effect of general principles of equity, whether enforcement is
considered in a proceeding in equity or at law, and the discretion
of the court before which any proceeding therefor may be brought;
(iii) the unenforceability under certain circumstances under
law or court decisions of provisions providing for the
indemnification of, or contribution to, a party with respect to a
liability where such indemnification or contribution is contrary to
public policy; (iv) we express no opinion concerning the
enforceability of any waiver of rights or defenses with respect to
stay, extension or usury laws; and (v) we express no opinion
with respect to whether acceleration of any Debt Securities may
affect the ability to collect any portion of the stated principal
amount thereof which might be determined to constitute unearned
interest thereon.
We
have relied as to certain matters on information obtained from
public officials, officers of the Company, and other sources
believed by us to be responsible and we have assumed that the
Senior Indenture and the Subordinated Indenture will be duly
authorized, executed, and delivered by the respective trustees
thereunder and the Warrant Agreement, Rights Agreement and Unit
Agreement will be duly authorized, executed, and delivered by the
warrant agent, rights agent and unit agent, respectively,
thereunder will be duly authorized, executed, and delivered by the
other parties thereto. With respect to our opinion as to the Common
Stock and Securities convertible into or exercisable for shares of
Common Stock, we have assumed that, at the time of issuance and
sale, a sufficient number of shares of Common Stock are authorized
and available for issuance under the Company’s Amended and
Restated Certificate of Incorporation, as amended, as then in
effect and that the consideration for the issuance and sale of the
Common Stock (or Debt Securities convertible into Common Stock or
Warrants or Rights exercisable for Common Stock or any Units of
such Securities) is in an amount that is not less than the par
value of the Common Stock. With respect to our opinion as to the
Preferred Stock and Securities convertible into or exercisable for
shares of Preferred Stock, we have assumed that, at the time of
issuance and sale, a sufficient number of shares of Preferred Stock
are authorized, designated and available for issuance under the
Company’s Amended and Restated Certificate of Incorporation,
as amended, and that the consideration for the issuance and sale of
the Preferred Stock (or Debt Securities convertible into Preferred
Stock or Warrants or Rights exercisable for Preferred Stock or any
Units of such Securities) is in an amount that is not less than the
par value of the Preferred Stock. We have also assumed that any
Warrants, Rights and Units offered under the Registration
Statement, and the related Warrant Agreement, Rights Agreement and
Unit Agreement, as applicable, will be executed in the forms to be
filed as exhibits to the Registration Statement or incorporated by
reference therein. We have not independently verified any of the
foregoing assumptions.
It
is understood that this opinion is to be used only in connection
with the offer and sale of Securities while the Registration
Statement is effective under the Securities Act.
Our
opinion is limited to the general corporate laws of the State of
Delaware and the laws of the State of New York. Without limiting
the generality of the foregoing, we express no opinion with respect
to (i) the qualification of the shares under the securities or
blue sky laws of any state or any foreign jurisdiction or
(ii) the compliance with any federal or state law, rule or
regulation relating to securities, or to the sale or issuance
thereof.
Please
note that we are opining only as to the matters expressly set forth
herein, and no opinion should be inferred as to any other matters.
The Securities may be issued from time to time on a delayed or
continuous basis, but this opinion is based upon currently existing
statutes, rules, regulations and judicial decisions, and we
disclaim any obligation to advise you of any change in any of these
sources of law or subsequent legal or factual developments which
might affect any matters or opinions set forth herein.
Based
upon the foregoing, we are of the opinion that:
1.
With respect to the Common Stock, when (i) specifically
authorized for issuance by the Company’s Board of Directors
or an authorized committee thereof (the “Authorizing
Resolutions”), (ii) the Registration Statement, as
finally amended (including all post-effective amendments), has
become effective under the Securities Act, (iii) an
appropriate prospectus supplement with respect to the applicable
shares of Common Stock has been prepared, delivered and filed in
compliance with the Securities Act and the applicable rules and
regulations thereunder, (iv) if the applicable shares of
Common Stock are to be sold pursuant to a purchase, underwriting or
similar agreement (an “Underwriting Agreement”), such
Underwriting Agreement with respect to the applicable shares of
Common Stock in the form filed as an exhibit to the Registration
Statement, any post-effective amendment thereto or to a Current
Report on Form 8-K, has been duly authorized, executed and
delivered by the Company and the other parties thereto,
(v) the terms of the sale of the Common Stock have been duly
established in conformity with the Company’s then operative
Amended and Restated Certificate of Incorporation, as amended, and
Amended and Restated Bylaws and do not violate any applicable law
or result in a default under or breach of any agreement or
instrument binding on the Company and comply with any requirement
or restriction imposed by any court or governmental body having
jurisdiction over the Company, (vi) the Common Stock has been
issued and sold as contemplated by the Registration Statement and
the prospectus included therein, and (vii) the Company has
received the consideration provided for in the Authorizing
Resolutions and, if applicable, the Underwriting Agreement, the
Common Stock will be validly issued, fully paid and
nonassessable.
2.
With respect to the Preferred Stock, when (i) specifically
authorized for issuance by the Authorizing Resolutions,
(ii) the Registration Statement, as finally amended (including
all post-effective amendments), has become effective under the
Securities Act, (iii) an appropriate prospectus supplement
with respect to the applicable shares of Preferred Stock has been
prepared, delivered and filed in compliance with the Securities Act
and the applicable rules and regulations thereunder, (iv) if
the applicable shares of Preferred Stock are to be sold pursuant to
an Underwriting Agreement, such Underwriting Agreement with respect
to the applicable shares of Preferred Stock in the form filed as an
exhibit to the Registration Statement, any post-effective amendment
thereto or to a Current Report on Form 8-K, has been duly
authorized, executed and delivered by the Company and the other
parties thereto, (v) an appropriate Certificate or
Certificates of Amendment or Designation relating to a class or
series of the Preferred Stock to be sold under the Registration
Statement has been duly authorized and adopted and filed with the
Secretary of State of the State of Delaware prior to the issuance
of the Preferred Stock, (vi) the terms of issuance and sale of
shares of such class or series of Preferred Stock have been duly
established in conformity with the Company’s then operative
Amended and Restated Certificate of Incorporation, as amended, and
Amended and Restated Bylaws and do not violate any applicable law
or result in a default under or breach of any agreement or
instrument binding upon the Company and comply with any requirement
or restriction imposed by any court or governmental body having
jurisdiction over the Company, (vii) shares of such class or
series of Preferred Stock have been duly issued and sold as
contemplated by the Registration Statement and the prospectus
included therein, and (viii) the Company has received the
consideration provided for in the Authorizing Resolutions and, if
applicable, the Underwriting Agreement, the Preferred Stock will be
validly issued, fully paid and nonassessable.
3.
With respect to the Debt Securities, when (i) specifically
authorized for issuance by the Authorizing Resolutions,
(ii) the Registration Statement, as finally amended (including
all post-effective amendments), has become effective under the
Securities Act, (iii) the Senior Indenture or the Subordinated
Indenture, whichever the case may be, has been duly authorized,
executed and delivered by the Company, (iv) an appropriate
prospectus supplement with respect to the applicable Debt
Securities has been prepared, delivered and filed in compliance
with the Securities Act and the applicable rules and regulations
thereunder, (v) if the applicable Debt Securities are to be
sold pursuant to an Underwriting Agreement, such Underwriting
Agreement with respect to the applicable Debt Securities in the
form filed as an exhibit to the Registration Statement, any
post-effective amendment thereto or to a Current Report on Form
8-K, has been duly authorized, executed and delivered by the
Company and the other parties thereto; (vi) the terms of the
Debt Securities and of their issuance and sale have been duly
established in conformity with the Senior Indenture or the
Subordinated Indenture, whichever the case may be, and do not
violate any applicable law or result in a default under or breach
of any agreement or instrument binding upon the Company and comply
with any requirement or restriction imposed by any court or
governmental body having jurisdiction over the Company,
(vii) such Debt Securities have been duly executed and
authenticated in accordance with the Senior Indenture or the
Subordinated Indenture, whichever the case may be, and issued and
sold as contemplated in the Registration Statement and the
prospectus included therein, (viii) the Senior Indenture or
the Subordinated Indenture, whichever the case may be, relating to
the Debt Securities has been qualified under the Trust Indenture
Act of 1939, as amended, and (ix) the Company has received the
consideration provided for in the Authorizing Resolutions and, if
applicable, the Underwriting Agreement, the Debt Securities will
constitute binding obligations of the Company.
4.
With respect to the Warrants, when (i) specifically authorized
for issuance by the Authorizing Resolutions, (ii) the
Registration Statement, as finally amended (including all
post-effective amendments), has become effective under the
Securities Act, (iii) the Warrant Agreement relating to the
Warrants has been duly authorized, executed, and delivered by the
Company, (iv) an appropriate prospectus supplement with
respect to the applicable Warrants has been prepared, delivered and
filed in compliance with the Securities Act and the applicable
rules and regulations thereunder, (v) if the applicable
Warrants are to be sold pursuant to an Underwriting Agreement, such
Underwriting Agreement with respect to the applicable Warrants in
the form filed as an exhibit to the Registration Statement, any
post-effective amendment thereto or to a Current Report on Form
8-K, has been duly authorized, executed and delivered by the
Company and the other parties thereto, (vi) the terms of the
Warrants and of their issuance and sale have been duly established
in conformity with the Warrant Agreement and do not violate any
applicable law or result in a default under or breach of any
agreement or instrument binding upon the Company and comply with
any requirement or restriction imposed by any court or governmental
body having jurisdiction over the Company, (vii) the Warrants
have been duly executed and countersigned in accordance with the
Warrant Agreement and issued and sold as contemplated by the
Registration Statement and the prospectus included therein, and
(viii) the Company has received the consideration provided for
in the Authorizing Resolutions and, if applicable, the Underwriting
Agreement, the Warrants will constitute binding obligations of the
Company.
5.
With respect to the Rights, when (i) specifically authorized
for issuance by the Authorizing Resolutions, (ii) the
Registration Statement, as finally amended (including all
post-effective amendments), has become effective under the
Securities Act, (iii) the Rights Agreement and any
certificates relating to the Rights have been duly authorized,
executed, and delivered by the Company, (iv) an appropriate
prospectus supplement with respect to the applicable Rights has
been prepared, delivered and filed in compliance with the
Securities Act and the applicable rules and regulations thereunder,
(v) if the applicable Rights are to be sold pursuant to an
Underwriting Agreement, such Underwriting Agreement with respect to
the applicable Rights in the form filed as an exhibit to the
Registration Statement, any post-effective amendment thereto or to
a Current Report on Form 8-K, has been duly authorized, executed
and delivered by the Company and the other parties thereto,
(vi) the terms of the Rights and of their issuance and sale
have been duly established in conformity with the Rights Agreement
and any rights certificates and do not violate any applicable law
or result in a default under or breach of any agreement or
instrument binding upon the Company and comply with any requirement
or restriction imposed by any court or governmental body having
jurisdiction over the Company, (vii) the Rights have been duly
executed and countersigned in accordance with the Rights Agreement
and issued and sold as contemplated by the Registration Statement
and the prospectus included therein, and (viii) the Company
has received the consideration provided for in the Authorizing
Resolutions and, if applicable, the Underwriting Agreement, the
Rights will constitute binding obligations of the
Company.
6.
With respect to the Units, when (i) specifically authorized
for issuance by the Authorizing Resolutions, (ii) the
Registration Statement, as finally amended (including all
post-effective amendments), has become effective under the
Securities Act, (iii) the Unit Agreement relating to the Units
has been duly authorized, executed, and delivered by the Company,
(iv) an appropriate prospectus supplement with respect to the
applicable Units has been prepared, delivered and filed in
compliance with the Securities Act and the applicable rules and
regulations thereunder, (v) if the applicable Units are to be
sold pursuant to an Underwriting Agreement, such Underwriting
Agreement with respect to the applicable Units in the form filed as
an exhibit to the Registration Statement, any post-effective
amendment thereto or to a Current Report on Form 8-K, has been duly
authorized, executed and delivered by the Company and the other
parties thereto, (vi) the terms of the Units and of their
issuance and sale have been duly established in conformity with the
Unit Agreement and do not violate any applicable law or result in a
default under or breach of any agreement or instrument binding upon
the Company and comply with any requirement or restriction imposed
by any court or governmental body having jurisdiction over the
Company, (vii) the Units have been duly executed and
countersigned in accordance with the Unit Agreement and issued and
sold as contemplated by the Registration Statement and the
prospectus included therein, and (viii) the Company has
received the consideration provided for in the Authorizing
Resolutions and, if applicable, the Underwriting Agreement, the
Units will constitute binding obligations of the
Company.
6. With respect to the up to 1,560,696 shares of
Common Stock issuable upon the exercise the Series J Warrants, such shares have been duly
authorized and reserved for issuance, and, when issued upon the
exercise of the Series J Warrants, in accordance with the terms
thereof, will be legally issued, fully paid and
nonassessable.
We
understand that you wish to file this opinion with the Commission
as an exhibit to the Registration Statement in accordance with the
requirements of Item 601(b)(5) of Regulation S-K
promulgated under the Securities Act and to reference the
firm’s name under the caption “Legal Matters” in
the prospectus which forms part of the Registration Statement, and
we hereby consent thereto. In giving this consent, we do not admit
that we are within the category of persons whose consent is
required under Section 7 of the Securities Act or the rules
and regulations of the Commission promulgated
thereunder.
Very
truly yours,
/s/ MINTZ, LEVIN, COHN, FERRIS, GLOVSKY & POPEO,
P.C.