ALPHARETTA, Ga. - Bakkt Holdings, Inc. (NYSE: BKKT), a digital asset management firm, announced it has entered into agreements for the sale of its Class A common stock and warrants in two separate offerings. The company expects to raise approximately $42.4 million from these transactions before expenses.
The first offering, aimed at institutional investors, involves 46,136,102 shares of Class A common stock and equal warrants, with the option to purchase pre-funded warrants instead. These shares and warrants are priced at $0.8670 each. The pre-funded warrants are exercisable immediately at $0.0001 and will not expire. This offering is set to close on March 4, 2024.
Concurrently, Bakkt has agreed to sell up to 11,534,025 shares and accompanying warrants to an affiliate of Intercontinental Exchange, Inc. (NYSE:ICE), with the same pricing terms. A portion of this offering will close simultaneously with the institutional investors' offering, while the remainder awaits stockholder approval.
Both Class 1 and Class 2 warrants will be exercisable six months post-closing at $1.0200 per share, either in cash or on a cashless basis, with a five-and-a-half-year expiration. Class 2 warrants also include a provision for cashless exercise under certain conditions. Investors will receive an equal split of Class 1 and Class 2 warrants.
ICE has also committed to a voting support agreement favoring proposals that would enable Bakkt to issue additional shares and warrants. Keefe, Bruyette & Woods, a Stifel Company, served as the exclusive placement agent for the institutional offering.
Bakkt plans to use the net proceeds primarily for working capital and general corporate purposes. The offerings are made under Bakkt's shelf registration statement, effective February 14, 2024, and are subject to customary closing conditions.
This announcement is based on a press release statement and does not constitute an offer to sell these securities. The sale is prohibited where unlawful prior to registration or qualification under the securities laws of any state or jurisdiction.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.