PORT Southport Acquisition Corporation

Item 1.01. Entry into a Material Definitive Agreement.

As previously disclosed in the definitive proxy statement filed by Southport Acquisition Corporation (the “Company”) with the U.S. Securities and Exchange Commission (the “SEC”) on May 22, 2023 (the “Proxy Statement”), the Company expects to hold a special meeting of stockholders (the “Special Meeting”) to consider and approve an extension of time for the Company to consummate an initial business combination from June 14, 2023 to September 14, 2023, or at the election of the board of directors of the Company (the “Board”), March 14, 2024, in six separate additional one-month extensions (the “Extension” and such proposal, the “Extension Proposal”).

On May 25, 2023, the Company and the Company’s sponsor, Southport Acquisition Sponsor LLC (the “Sponsor”), entered into voting and non-redemption agreements (the “Non-Redemption Agreements”) with unaffiliated third parties in exchange for such third parties agreeing (i) not to redeem an aggregate of 4,000,000 shares of the Company’s Class A common stock (“Class A Common Stock”) sold in its initial public offering (the “Non-Redeemed Shares”) in connection with the Special Meeting and (ii) to vote in favor of the Extension Proposal and the Extension at the Special Meeting (other than with respect to certain shares acquired or to be acquired pursuant to the Non-Redemption Agreements). In exchange for the foregoing commitments, the Sponsor has agreed to transfer to such third parties an aggregate of up to 1,499,996 shares of the Company’s Class B common stock (“Class B Common Stock”) held by the Sponsor, with 500,000 of such shares to be transferred to such third parties promptly upon consummation of the Extension, and an additional 166,666 shares to be transferred to such third parties monthly beginning on September 14, 2023 and up to, and including, February 14, 2024, if the Board elects to further extend the deadline to consummate an initial business combination at or prior to such date, in each case, if such third parties continue to hold such Non-Redeemed Shares through the Special Meeting.

The Non-Redemption Agreements are expected to increase the likelihood that the Extension Proposal is approved by Company’s stockholders and to increase the amount of funds that remain in the Company’s trust account following the Special Meeting, relative to the amount of funds remaining in the trust account had the Non-Redemption Agreements not been entered into.

Neither the Sponsor nor the Company’s directors or executive officers beneficially owned any shares of Class A Common Stock as of May 12, 2023 (the record date for the Special Meeting), but such persons may choose to purchase shares of Class A Common Stock in the open market and/or through negotiated private transactions prior to the Special Meeting at prices not to exceed the per-share pro rata portion of the Company’s trust account on May 24, 2023 described below. In the event that such purchases do occur, the purchasers may seek to purchase shares of Class A Common Stock from stockholders who would otherwise have voted against the Extension Proposal and/or elected to redeem their shares. Any shares of Class A Common Stock so purchased will not be voted in favor of or against the Extension Proposal. In addition, the Company expects the third parties under the Non-Redemption Agreements to purchase at least 2,571,922 shares of Class A Common Stock in the open market and/or through negotiated private transactions and elect not to redeem such shares in connection with the Special Meeting. Any such open market and/or privately negotiated purchases will be effected at purchase prices that are no greater than the per-share pro rata portion of the Company’s trust account on May 24, 2023. Any shares of Class A Common Stock so purchased by third parties will not be voted in favor of or against the Extension Proposal.

The per-share pro rata portion of the Company’s trust account on May 24, 2023 was approximately $10.50 per share of Class A Common Stock. The closing price of the Class A Common Stock on May 24, 2023 was $10.44.

The foregoing summary of the Non-Redemption Agreements does not purport to be complete and is qualified in its entirety by reference to the form of Non-Redemption Agreement filed as Exhibit 10.1 hereto and incorporated herein by reference.

Item 8.01 Other Events.

On May 25, 2023, pursuant to the terms of the Amended and Restated Certificate of Incorporation of the Company, the Sponsor converted 4,200,000 shares of the Company’s Class B Common Stock held by it on a one-for-one basis into shares of the Company’s Class A Common Stock. Following such conversion, the Company will have an aggregate of 27,200,000 shares of Class A Common Stock issued and outstanding and 1,550,000 shares of Class B Common Stock issued and outstanding.

Forward-Looking Statements

This communication includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Statements in this filing about the Company that are not historical facts are forward-looking statements based on the Company’s current expectations, assumptions, estimates and projections. These forward-looking statements are subject to risks and uncertainties that could cause actual future events or results to differ materially from such statements. These forward-looking statements are based on our current expectations, which may not prove to be accurate. The words “believe,” “may,” “will,” “estimate,” “potential,” “continue,” “anticipate,” “intend,” “expect,” “could,” “would,” “project,” “plan,” “target” and similar expressions are intended to identify forward-looking statements. These forward-looking statements and factors that may cause such differences include, without limitation, uncertainties relating to the approval by the Company’s stockholders of the Extension Proposal, the Company’s expectation that the Non-Redemption Agreements will increase the amount remaining in the trust account following the Special Meeting, its inability to complete an initial business combination within the required time period and other risks and uncertainties indicated from time to time in filings with the SEC, including the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 under the heading “Risk Factors” and other documents the Company has filed, or will file, with the SEC. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

Participants in the Solicitation

The Company and its directors and executive officers and other persons may be deemed to be participants in the solicitation of proxies from the Company’s stockholders in respect of the Extension Proposal. Information regarding the Company’s directors and executive officers is available in its annual report on Form 10-K for the fiscal year ended December 31, 2021 filed with the SEC. Additional information regarding the participants in the proxy solicitation and a description of their direct and indirect interests are contained in the Proxy Statement.

No Offer or Solicitation

This communication shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which the offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

Additional Information

The Company has filed with the SEC the Proxy Statement to consider and vote upon the Extension Proposal and other matters, and, beginning on or about May 22, 2023, first mailed the Proxy Statement and other relevant documents to its stockholders as of the May 12, 2023 record date for the Special Meeting. The Company’s stockholders and other interested persons are advised to read the Proxy Statement and any other relevant documents that have been or will be filed with the SEC in connection with the Company’s solicitation of proxies for the Special Meeting because these documents will contain important information about the Company, the Extension Proposal, the Extension and related matters. Stockholders may also obtain a free copy of the Proxy Statement, as well as other relevant documents that have been or will be filed with the SEC, without charge, at the SEC’s website located at www.sec.gov or by directing a request to Morrow Sodali LLC at (800) 662-5200 (toll free) or (203) 658-9400 (bank and brokers can call collect).

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.