Falcon's Beyond Global announces mandatory warrant exchange

By Tamara Parker • Monday, December 16 10:21 • Permanent Link

Falcon's Beyond Global, Inc. (NASDAQ: FBYD) has announced the filing of a definitive information statement on Schedule 14C with the Securities and Exchange Commission. This filing is aimed at notifying holders of the company’s publicly-traded warrants about the mandatory exchange of the warrants on October 6, 2028, for shares of the company’s Class A common stock at an exchange ratio of 0.25 shares of Class A common stock per warrant.

The amendment to the warrant agreement, authorized by holders of more than 50% of the warrants, is expected to simplify the company’s capital structure and provide warrant holders with an opportunity to convert their holdings into equity in Falcon’s Beyond at a fixed exchange ratio.

The initiative, which is set to become effective on January 14, 2025, is aimed at maximizing stockholder value and creating an environment conducive to supporting the chances of long-term stock price appreciation.

After the effective date, the warrants will no longer be exercisable and will only entitle holders to receive shares of Class A common stock at the exchange ratio on the exchange date. It is expected that the warrants will remain listed on NASDAQ until the exchange date, although continued listing after the effective date cannot be guaranteed.

Furthermore, the exchange ratio will be appropriately adjusted in the event of any stock dividend, stock split, consolidation, combination, reverse stock split, or reclassification of shares of Class A common stock or other similar event. However, the exchange ratio will not be adjusted to reflect the stock dividend declared by the company on September 30, 2024, and payable on December 17, 2024.

The filing of the definitive information statement on Schedule 14C provides a detailed description of the amendment, and stakeholders are encouraged to refer to it for more information.

Falcon’s Beyond Global, Inc. (NASDAQ: FBYD) is a leading innovator in immersive storytelling, operating through its divisions Falcon’s Creative Group, Falcon’s Beyond Destinations, and Falcon’s Beyond Brands. The company is headquartered in Orlando, Florida.

Today the company's shares have moved -7.0% to a price of $8.83. For more information, read the company's full 8-K submission here.

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