Ripple sells 33,3% of the shares in MoneyGram, earn up to $13,280,000
Ripple will sell roughly one-third of its stake in MoneyGram. The blockchain payments firm currently owns 6,237,523 MoneyGram shares and will own approximately 12.2 million shares in line with the stock underwriting verification that it has the right to purchase 5,957,600 shares, but this time it plans to sell 4,000,000 shares, about 33,3% of the shares.
After the sale, Ripple will still own at least 3.22 million shares or 4.44% of MoneyGram. When including the additional shares represented by the warrant, which gives Ripple the right to execute a stock buy at a predetermined price, the blockchain payments firm will still own about 11% of MoneyGram.
“On November 25, 2020, Ripple entered into an agreement (the “Plan”) with a financial institution, pursuant to which the Financial Institution is authorized to sell up to 4,000,000 shares of Common Stock (the ”Maximum Amount”) on behalf of the Reporting Person in a manner intended to qualify for the affirmative defense provided by Rule 10b5-1(c). Generally, the Plan shall expire upon the earliest of March 31, 2021, the time at which the Maximum Amount shall have been sold, or the occurrence of certain other customary events affecting the Issuer”, according to a U.S. Securities and Exchange Commission filing on Friday.
In June 2019, Ripple bought the shares in MoneyGram at $4.10 apiece, at a significant premium to their price at the time. With shares of MoneyGram up more than 260% this year, closing at $7.42 on Wednesday, the company can now net a significant profit on its investment, earn up to $13,280,000.
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