Robinhood Says SEC Examines Sales Of Shares To Investors

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The Securities and Exchange Commission has launched a review of a sale of shares by a group of Robinhood investors.

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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.

Teleprinter Security Last Switch Switch %
HOOD ROBINHOOD MARKETS, INC. 44.10 -0.52 -1.17%

An SEC spokesperson told FOX Business the agency is not commenting on the existence or non-existence of a possible investigation.


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