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Reddit Insiders Selling Days After IPO; Shares Fall (www.investors.com)
submitted 2 years ago by scottywh@lemmy.world to c/news@lemmy.world
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[-] ChunkMcHorkle@lemmy.world 0 points 2 years ago

They wouldn’t be able to sell after the market actually opened, that’s where lockup periods come in, and it’s 180 days in this case.

That must be part of the amendments then, because when I looked at the Reddit S-1 about three weeks ago, the lockup for all share classes was at three days, very brief. I looked it up specifically because I wanted to know how soon Spez could get to the dump part of the pump-n-dump, and here we are.

[-] ChunkMcHorkle@lemmy.world 1 points 2 years ago* (last edited 2 years ago)

deleted by creator

[-] Ranvier@sopuli.xyz 2 points 2 years ago* (last edited 2 years ago)

I'm not an expert, I could be wrong or misreading it. The wording isn't straight forward. This is the section that mentions it:

In connection with this offering, we and all of our directors and executive officers, the selling stockholders, and certain other record holders that together represent approximately 82% of our outstanding Class A common stock and securities directly or indirectly convertible into or exchangeable or exercisable for our Class A common stock are subject to lock-up agreements with the underwriters agreeing that, subject to certain exceptions, without the prior written consent of Morgan Stanley & Co. LLC, Goldman Sachs & Co. LLC, and J.P. Morgan Securities LLC, on behalf of the underwriters, we and they will not, in accordance with the terms of such agreements during the period ending on the opening of trading on the earlier of (i) the third trading day immediately following our public release of earnings for the quarter ending June 30, 2024 and (ii) 180 days after the date of this prospectus (such period, the “Lock-up Period”): (1)offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right, or warrant to purchase, lend, make any short sale, or otherwise transfer or dispose of, directly or indirectly, any shares of our Class A common stock and securities directly or indirectly convertible into or exchangeable or exercisable for our Class A common stock; (2)enter into any swap, hedging transaction, or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of our Class A common stock, whether any such transaction described above is to be settled by delivery of our Class A common stock or such other securities, in cash or otherwise; (3)publicly disclose the intention to take any of the actions restricted by clause (1) or (2) above; or (4)make any demand for, or exercise any right with respect to, the registration of any shares of our Class A common stock or any security convertible into or exercisable or exchangeable for our Class A common stock.

If you control f to "lock-up" there's more context too.

[-] ChunkMcHorkle@lemmy.world 1 points 2 years ago

Yeah, that's the section, at least for Class A. I think I'm the one who misread, and took "third trading day immediately following our public release of earnings for the quarter ending June 30, 2024" for "third trading day immediately following our public release blah blah blah" (the IPO).

I need to take more time when I'm sounding out the words, lol. Thank you for looking and taking the time to cite the section.

[-] Ranvier@sopuli.xyz 2 points 2 years ago

I've read it like ten times and am still a little confused, it is about as confusingly worded as possible I think, haha.

this post was submitted on 28 Mar 2024
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