HOODwinked: Stock Soars As Firm Holds Insider Sales Until SEC Approves
Having collapsed yesterday after admitting that insiders were looking to dump nearly 100 million shares into the freshly IPO’d market, erasing all of the prior day’s orgasmic meme-driven gains, Robinhood has reversed its stance this morning.
The company said this morning that some early investors who filed to sell millions of shares won’t be able to do so until they get clearance from the U.S. Securities and Exchange Commission.
Resale Registration Statement on Form S-1
On August 5, 2021, Robinhood filed a registration statement on Form S-1 (the “Resale S-1”) with the Securities and Exchange Commission (the “SEC”).
The Resale S-1 registers shares already outstanding as a result of the automatic conversion of the Tranche I convertible notes in connection with the closing of Robinhood’s initial public offering on August 2, 2021.
Robinhood is not itself selling any additional securities but filed the Resale S-1 on behalf of certain of its shareholders pursuant to a pre-existing contractual obligation under the purchase agreement for the Tranche I convertible notes.
No sales can be made off the Resale S-1 until the SEC declares it effective, and, in light of required SEC staff review periods, Robinhood does not expect that it will be in a position to obtain a declaration of effectiveness until after its financial statements for the period ended June 30, 2021, have been filed with its upcoming Quarterly Report on Form 10-Q which it expects to file on August 18, 2021.
And the response… HOOD is up 20%
Even as sentiment slows on WSB…
Of course, it appears the ‘buyers’ have ‘unrealized’ that these insider sales are still imminent?
But hey YOLO, bitches!
Fri, 08/06/2021 – 09:48
Zero Hedge’s mission is to widen the scope of financial, economic and political information available to the professional investing public, to skeptically examine and, where necessary, attack the flaccid institution that financial journalism has become, to liberate oppressed knowledge, to provide analysis uninhibited by political constraint and to facilitate information’s unending quest for freedom. Visit https://www.zerohedge.com
This post has been republished with implied permission from a publicly-available RSS feed found on Zero Hedge. The views expressed by the original author(s) do not necessarily reflect the opinions or views of The Libertarian Hub, its owners or administrators. Any images included in the original article belong to and are the sole responsibility of the original author/website. The Libertarian Hub makes no claims of ownership of any imported photos/images and shall not be held liable for any unintended copyright infringement. Submit a DCMA takedown request.