TLDR: Public MILE warrants are not being listed on an exchange post closing on the acquisition by LMND. What options are typically available in such circumstances or can I now only exercise such warrants if they ever exceed the strike price?
Metromile had warrants which were listed on the Nasdaq under MILEW which expire in 2026 and were exercisable at a price of $11.50. Lemonade just closed on their acquisition of Metromile and the warrants were treated as follows:
At the First Effective Time, each Metromile warrant exercisable for Metromile common stock (each, a “Metromile Warrant”) ceased to represent a Metromile Warrant and was assumed by Company and converted automatically into a warrant denominated in shares of Company common stock from Company on the same terms and conditions (including vesting terms) as applied to such Metromile Warrant immediately prior to the First Effective Time (with the number of warrants and exercise price being adjusted based on the exchange ratio).
Per Lemonade, the company does not intend to list the converted warrants on any exchange post completion of the acquisition. Does anyone have any experience surrounding similar situations that could help to shed some light on whether I can still sell the warrants at any point/if they have any value (previously were traded on an exchange just like stock/options) or do I have to just hold onto them for the rest of the term and hope they end up in the money years from now? I was hoping to be able to flip the warrants themselves a few years from now as the company and stock price grew versus ever exercising them.
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