Ticker:
Description of why you are requesting DD: Up over 10 percent today on no news I can find. 28M share unlock upcoming on 12/28. Goodman Sachs downgrade earlier in the month with a $14 PT. Just wanted to get some thoughts on this. Thanks.
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I can’t find anything about the share unlock at 12/28. Do you have a source?
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Okay I did some more digging and found the answer in S-1 filing. https://www.sec.gov/Archives/edgar/data/0001857154/000119312521195910/d107564ds1a.htm
Some points I found:
At our request, the underwriters have reserved for sale at the initial public offering price per share up to 5.0% of the shares of common stock offered by this prospectus for sale, to some of our directors, officers, employees, distributors, dealers, business associates and related persons. If purchased by our directors and officers, the shares will be subject to a 180-day lock-up restriction.
After this offering and the share repurchase, there will be 160,890,354 shares of common stock outstanding (or 164,890,354 shares outstanding if the underwriters exercise their option to purchase additional shares of common stock in full). Of our issued and outstanding shares, only the 26,666,667 shares of common stock sold in this offering (or 30,666,667 shares if the underwriters exercise the option to purchase additional shares of common stock in full) will be freely transferable, except for any shares held by our “affiliates,” as that term is defined in Rule 144 (“Rule 144”) under the Securities Act. Following the completion of this offering and the Distribution, approximately 38.6% of our outstanding common stock (or 37.7% if the underwriters exercise their option to purchase additional shares of common stock in full) will be held by an affiliate of JAB and can be resold into the public markets in the future in accordance with the requirements of Rule 144, subject to the lock-up agreements described below. The sale by JAB’s affiliate of a substantial number of shares after this offering, or a perception that such sales could occur, could significantly reduce the market price of our common stock. See “Shares Eligible For Future Sale.”
We and our executive officers and directors and substantially all of our stockholders, including JAB, have agreed with the underwriters that, subject to certain exceptions, for a period of 180 days after the date of this prospectus, we and they will not directly or indirectly offer, pledge, sell, contract to sell, sell any option or contract to purchase or otherwise dispose of any common stock or any securities convertible into or exercisable or exchangeable for common stock, or in any manner transfer all or a portion of the economic consequences associated with the ownership of common stock, or cause a registration statement covering any common stock to be filed, without the prior written consent of J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC. J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC, in their sole discretion, may release the securities subject to any of the lock-up agreements with the underwriters described above, in whole or in part at any time. See “Underwriting (Conflicts of Interest).”
Looks like c-suite has 5% and other investors has another 38.6%? 180 days after initial offering of July 1 is December 28. Shares should have been offered at $17 so unless it’s way above $17 I wouldn’t expect a selloff?
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Thank you. That’s where I saw it. I’ll try to find it in the filings. Would I be looking at the S-1 or a different form?
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Looks like we responded at the same time. See above. I think if DNUT is still around $17 then it won’t really see much of a sell off though?
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Thanks for looking into it. I was just thinking some might want to get out around IPO price. Hit a low of $12.63 beginning of November and touched $13 a few weeks ago. Seems to be on a bit of a run since though.
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we should have seen a lot of downward pressure to the share price by now if comparing to HOOD and CPNG share unlock. DNUT has been in an upward trend in the face of heavy headwinds from SPY this month (no correlation with SPY)
Lucky enough to get out barely green today.
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