The Securities and Exchange Commission has launched a review of a sale of shares by a group of Robinhood investors.
PAYPAL CONSIDERS LAUNCH OF A SHARE TRADING PLATFORM: REPORT
Robinhood announced on Wednesday that an S-1 resale has been filed on behalf of a group of its shareholders who have received Class A common stock in the automatic conversion of the IPO-linked Tranche 1 convertible notes into commission-free trading platform stock exchange.
“SEC staff informed Robinhood on August 13, 2021 that they were reviewing Resale S-1,” the company said. “Once SEC staff complete their review, Robinhood intends to file an acceleration request asking the SEC to declare the S-1 resale effective two business days later. We plan to make an announcement. public when we file this request. “
No sale can be made from the S-1 Resale until the SEC has completed its review and declared it effective.
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Robinhood’s share price took a hit in early August after the company revealed that a group of its existing shareholders planned to sell up to 97.9 million shares. Robinhood has indicated that it will not receive any proceeds from the sale.
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An SEC spokesperson told FOX Business the agency is not commenting on the existence or non-existence of a possible investigation.