Landsea Homes Corporation has recently announced that certain warrants will be subject to a lock-up agreement until November 21, 2023. During this period, these warrants will be under lockup for a duration of 91 days, commencing from August 22, 2023, until November 21, 2023.
The lock-up agreement will be applicable to the company’s executive officers, directors, the selling stockholder, certain affiliates, and Landsea Holdings. With limited exceptions, these individuals and entities have agreed not to sell the warrants for a period of 90 days after the issuance of this prospectus supplement without the prior written consent of the underwriters.
Throughout this lock-up period, the warrants will be restricted from being transferred, sold, or otherwise disposed of without the consent of the underwriters, except for the shares that will be sold by the selling stockholder as part of this offering. This agreement aims to provide stability and mitigate potential market volatility that may arise from an influx of warrants entering the market.
The lock-up period allows Landsea Homes Corporation to maintain control over the distribution of its warrants, ensuring a smoother transition and implementation of its strategic plans. By temporarily restricting the sale or transfer of warrants, the company can better manage the impact on its stock price and overall market dynamics.
This announcement underscores Landsea Homes Corporation’s commitment to safeguarding the interests of its shareholders and promoting a more controlled trading environment. It demonstrates the company’s proactive approach in navigating the complexities of the financial market to maximize long-term value for its stakeholders.
Q: What is a lock-up agreement?
A: A lock-up agreement is a contractual arrangement that restricts certain shareholders or individuals from selling or transferring their securities for a specified period.
Q: Why do companies implement lock-up agreements?
A: Companies implement lock-up agreements to control the release of securities into the market, reducing potential volatility in stock prices and ensuring a smoother transition for strategic plans.
Q: Can the warrants be sold during the lock-up period?
A: With limited exceptions, the warrants subject to the lock-up agreement cannot be sold, transferred, or disposed of without the prior written consent of the underwriters.
Q: How long will the lock-up period last?
A: The lock-up period for Landsea Homes Corporation’s warrants will last for 91 days, starting from August 22, 2023, and ending on November 21, 2023.
Q: Who is included in the lock-up agreement?
A: The lock-up agreement includes Landsea Homes Corporation’s executive officers, directors, the selling stockholder, certain affiliates, and Landsea Holdings.