EX-5.1 2 crge_ex51.htm OPINION crge_ex51.htm

EXHIBIT 5.1

 

 

 

 

 

Sheppard, Mullin, Richter & Hampton LLP

30 Rockefeller Plaza

New York, New York 10112-0015

212.653.8700 main

212.653.8701 fax

www.sheppardmullin.com

 

August 15, 2023

 

VIA EDGAR

Charge Enterprises, Inc.

125 Park Avenue, 25th Floor

New York, NY 10017

 

Re: Post-Effective Amendment No. 1 to the Registration Statement on Form S-1 on Form S-3

 

Ladies and Gentlemen:

 

We have acted as counsel to Charge Enterprises, Inc., a Delaware corporation (the “Company”), in connection with the issuance of this opinion that relates to a Post-Effective Amendment No. 1 (the “Amendment”) to the Company’s Registration Statement on Form S-1 on Form S-3 (File No. 333-267047) (as amended by this Amendment, the “Registration Statement”) filed by the Company with the United States Securities and Exchange Commission (the “SEC”) under the Securities Act of 1933, as amended (the “Securities Act”). The Registration Statement covers the resale, by the selling stockholders listed therein, from time to time pursuant to Rule 415 under the Securities Act as set forth in the Registration Statement, of 25,497,543 shares (the “Shares”) of the Company’s common stock, par value $0.0001 per share (the “Common Stock”), which consist of (i) up to 6,226,370 shares of Common Stock that may be issuable upon conversion of our series C convertible preferred stock (the “Preferred Stock”). (ii) up to 6,240,370 shares of Common Stock that may be issuable upon exercise of certain outstanding warrants (the “Warrants”), and (iii) 13,030,803 shares of Common Stock (the “Common Shares”). The Shares issued or issuable by the Company to the selling stockholders were sold in five separate private placement transactions that were completed on May 8, 2020, May 17, 2021, December 19, 2021, February 25, 2022 and April 26, 2022.  The shares of Common Stock issuable upon the conversion of the Preferred Stock are referred to herein as the “Conversion Shares.” The shares of Common Stock issuable upon the exercise of the Warrants are referred to herein as the “Warrant Shares.”

 

This opinion letter is being delivered in accordance with the requirements of Item 601(b)(5)(i) of Regulation S-K under the Securities Act, and no opinion is expressed herein as to any matter pertaining to the contents of the Registration Statement or related prospectus.

 

In connection with the issuance of this opinion letter, we have examined originals or copies, certified or otherwise identified to our satisfaction, of such records of the Company and such agreements, certificates and receipts of public officials, certificates of officers or other representatives of the Company and others, and such other documents as we have deemed necessary or appropriate as a basis for the opinions stated below. As to any facts relevant to the opinions stated herein that we did not independently establish or verify, we have relied upon statements and representations of officers and other representatives of the Company and of public officials.

 

In our examination, we have assumed (a) the genuineness of all signatures, including endorsements, (b) the legal capacity and competency of all natural persons, (c) the authenticity of all documents submitted to us as originals, (d) the conformity to original documents of all documents submitted to us as facsimile, electronic, certified or photostatic copies, and the authenticity of the originals of such copies; (e) the accuracy, completeness and authenticity of certificates of public officials, (f) the due authorization, execution and delivery of all agreements, instruments, corporate records, certificates and other documents by all parties thereto (other than the Company) and (g) that no documents submitted to us have been amended or terminated orally or in writing, except as has been disclosed to us in writing.

 

 
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Based upon the foregoing and subject to the qualifications and assumptions stated herein, we are of the opinion that:

 

1. The Warrants constitute valid and legally binding obligations of the Company enforceable against the Company in accordance with their terms.

 

2.  The Conversion Shares have been duly authorized by all requisite corporate action on the part of the Company under the Delaware General Corporation Law (the “DGCL”) and, when issued upon the conversion of the Preferred Stock pursuant to the terms and conditions set forth in the Certificate of Designations for the Preferred Stock and when evidence of the issuance thereof is duly recorded in the Company’s books and records, will be validly issued, fully paid, and non-assessable.

 

3. The Warrants Shares have been duly authorized by all requisite corporate action on the part of the Company under the DGCL and, when the Warrant Shares are delivered and paid for in accordance with the terms of the Warrants and when evidence of the issuance thereof is duly recorded in the Company’s books and records, the Warrant Shares will be validly issued, fully paid, and non-assessable.

 

4.  The Preferred Stock and Common Shares have been duly authorized by all requisite corporate action on the part of the Company under the DGCL and are validly issued, fully paid, and non-assessable.

 

Our opinion set forth in paragraph 1 above is subject to (i) the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws relating to or affecting creditors’ rights generally, (ii) general equitable principles (whether considered in a proceeding in equity or at law) and (iii) an implied covenant of good faith and fair dealing.

 

Our opinion is expressly limited to the matters set forth above, and we render no opinion, whether by implication or otherwise, as to any other matters relating to the Company, the Preferred Stock, the Warrants, the Conversion Shares, the Warrant Shares, the Common Shares or any other agreements or transactions that may be related thereto or contemplated thereby. We are expressing no opinion as to any obligations that parties other than the Company may have under or in respect of the Conversion Shares, the Warrant Shares, or as to the effect that their performance of such obligations may have upon any of the matters referred to above. No opinion may be implied or inferred beyond the opinion expressly stated above.

 

The opinion we render herein is limited to those matters governed by the State of New York and the DGCL as of the date hereof and we disclaim any obligation to revise or supplement the opinion rendered herein should the above-referenced laws be changed by legislative or regulatory action, judicial decision, or otherwise. We express no opinion as to whether, or the extent to which, the laws of any particular jurisdiction apply to the subject matter hereof.  We express no opinion as to matters governed by any laws other than the State of New York or the DGCL.

 

This opinion letter is rendered as of the date first written above, and we disclaim any obligation to advise you of facts, circumstances, events, or developments that hereafter may be brought to our attention or that may alter, affect, or modify the opinion expressed herein.

 

We hereby consent to the filing of this opinion as an exhibit to the Registration Statement. We also hereby consent to the reference to our firm under the heading “Legal Matters” in the Registration Statement. In giving this consent, we do not thereby admit that we are within the category of persons whose consent is required under Section 7 of the Securities Act or the General Rules and Regulations under the Securities Act. It is understood that this opinion is to be used only in connection with the offer and sale of the Shares being registered while the Registration Statement is effective under the Securities Act.

 

Respectfully submitted,

 

/s/ Sheppard, Mullin, Richter & Hampton LLP

 

SHEPPARD, MULLIN, RICHTER & HAMPTON LLP

 

 
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