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Vivid Seats Announces Exchange Offer and Consent Solicitation Relating to Public Warrants and Authorization of $40 Million Share Repurchase Program
CHICAGO, May 26, 2022 (GLOBE NEWSWIRE) -- Vivid Seats Inc. (NASDAQ: SEAT) (“Vivid Seats” or the “Company”), a leading marketplace that utilizes its technology
About this update from Vivid Seats Inc.
[{"type":"text","content":"CHICAGO, May 26, 2022 (GLOBE NEWSWIRE) -- Vivid Seats Inc. (NASDAQ: SEAT) (“Vivid Seats” or the “Company”), a leading marketplace that utilizes its technology platform to connect millions of buyers with thousands of ticket sellers across hundreds of thousands of events each year, today announced that it has commenced an exchange offer (the “Offer”) and consent solicitation (the “Consent Solicitation”) relating to its outstanding public warrants to purchase shares of its Class A common stock, par value $0.0001 per share (“Class A Common Stock”). The purpose of the Offer and Consent Solicitation is to simplify the Company’s capital structure and reduce the potential dilutive impact of the warrants, thereby providing the Company with more flexibility for financing its operations in the future. Vivid Seats also announced that its Board of Directors has authorized the repurchase of up to $40 million of the Company’s outstanding shares of its Class A Common Stock following the completion of the Offer and Consent Solicitation and until the end of March 2023. The Company intends to fund the share repurchase program with cash from operations and cash on hand. No share repurchases will be made under the share repurchase program until the Offer is complete. “We are committed to strategically deploying capital to drive long-term value for shareholders. Our technology marketplace has a long track record of growth, profitability and strong cash flow conversion that enables us to selectively repurchase shares. The share repurchase program underscores our confidence in continued cash flow generation,” said Lawrence Fey, Vivid Seats CFO. Exchange Offer and Consent Solicitation Relating to Public Warrants The Company is offering to all holders of its public warrants the opportunity to receive 0.240 shares of Class A Common Stock in exchange for each outstanding public warrant tendered by the holder and exchanged pursuant to the Offer. Pursuant to the Offer, the Company is offering up to an aggregate of 4,351,864 shares of its Class A Common Stock in exchange for the public warrants. Concurrently with the Offer, the Company is also soliciting consents from holders of the public warrants to amend the warrant agreement that governs all of the public warrants (the “Warrant Agreement”) to permit the Company to require that each public warrant that is ...