Landsea Homes Corporation has announced that certain warrants issued by the company will be subject to a lock-up agreement until November 21, 2023. This means that these warrants will be restricted from trading for a period of 91 days starting from August 22, 2023.
The lock-up agreement applies to the company’s executive officers, directors, selling stockholder, certain affiliates, and Landsea Holdings. With limited exceptions, these parties have agreed not to sell or transfer their warrants without the prior written consent of the underwriters, excluding the shares to be sold by the selling stockholder in this offering.
This lock-up period is a common practice in the financial industry, designed to ensure stability and prevent significant fluctuations in the market immediately after a company goes public or issues new securities. It provides confidence to investors and underwriters that key stakeholders are committed to the long-term success of the company.
During this lock-up period, the executives, directors, and other specified parties will be restricted from selling or transferring their warrants on the open market. However, they may still exercise their warrants if they choose to do so, thereby converting them into company shares.
Q: What is a lock-up agreement?
A: A lock-up agreement is a contractual restriction that prevents certain shareholders or insiders of a company from selling or transferring their shares or securities for a specified period of time.
Q: Why are lock-up agreements used?
A: Lock-up agreements are typically used to provide stability and prevent excessive volatility in the market immediately after a company goes public or issues new securities. They assure investors and underwriters that key stakeholders are committed to the company’s long-term success.
Q: Can executives and directors still exercise their warrants during the lock-up period?
A: Yes, executives and directors can still exercise their warrants during the lock-up period if they choose to do so, which would convert the warrants into company shares. However, they are restricted from selling or transferring these shares on the open market until the lock-up period ends.
– [Landsea Homes Corporation](https://landseahomes.com/)