Rocket Lab to redeem its warrants as per “Redemption Fair Market Value”

19th Jan 2022
Rocket Lab to redeem its warrants as per “Redemption Fair Market Value”

The news came on 22nd December 2021 that Rocket Lab will be using “Redemption Fair Market Value” to evaluate shares of common stock, currently estimated at $0.0001 per share. The shares will be evaluated and issued on a cashless exercise of a Warrant subject as per the terms of the Warrant Agreement.

Rocket Lab plans on purchasing shares of the company’s common stock

Rocket Lab had common stock sold out to investors and private parties around September 2020. This move goes through the process of re-evaluating the company’s stock and preparing for the purchase of a large number of common stock shares. AST, American Stock Transfer & Trust Company, serves as successor warrant agent. The company’s initial public offer or IPO is for a redemption price of $0.10 per Public Warrant, to remain outstanding at 5:00 p.m. New York City time on 21st January 2022.

Rocket Lab has made a public announcement that it intends to redeem all its outstanding warrants to purchase Common Stock, issued under the Warrant Agreement, which occurred simultaneously with the IPO.

Registered holders have been given due notice

AST has said that they have delivered a notice to every registered holder of Warrants. The Redemption Fair Market Value is placed at $11.57. Holders who decide to expunge their Warrants on a “cashless basis” are due to receive 0.2843 shares of Common Stock per Warrant.

It’s important to mention that holders who fail to exercise their Warrants by 5:00 p.m. New York City time on 21st January 2022, will not receive due compensation. However, holders of Rocket Lab Warrants trying to exchange their stock past the due date will be entitled to receive the redemption cost of $0.10 per Warrant.

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