Affirm Announces Early Lock-Up Release

Rhea-AI Summary

Affirm Holdings announced a partial early lock-up release for Class A common stock shares following the achievement of certain share price conditions on February 26, 2021. As a result, up to 15.6 million shares will be available for sale starting March 3, 2021. This release pertains to 10% of the shares from specific lock-up agreements involving directors and large stockholders. However, the remaining shares will still be subject to the lock-up agreements.

Positive

• Up to 15.6 million shares will be available for sale, potentially increasing liquidity in the market.

Negative

• The early lock-up release could lead to increased selling pressure on the stock, impacting its price negatively.

Affirm Holdings, Inc. (NASDAQ: AFRM) (“Affirm” or the "Company”), today announced a partial early lock-up release with respect to Affirm’s shares of Class A common stock, par value $0.00001 per share (the “shares”), pursuant to the terms of certain lock-up agreements (“lock-up agreements”) entered into by certain of Affirm’s directors, officers, greater than 1% stockholders and other stockholders (other than current non-officer employees, former employees, consultants and independent contractors) with the underwriters of Affirm’s initial public offering.

Pursuant to the terms of the lock-up agreements, the restricted period will end with respect to 10% of the shares subject to each lockup agreement if certain share price and other conditions are met. The conditions for early release were satisfied on February 26, 2021. Accordingly, the Company estimates that up to 15.6 million shares will become eligible for sale in the public market at the open of trading on March 3, 2021.

The restricted period will continue to apply with respect to all remaining shares subject to the lock-up agreements.

About Affirm

Affirm’s mission is to deliver honest financial products that improve lives. With that in mind, we are building the next generation platform for digital and mobile-first commerce, making it easier for consumers to spend responsibly and with confidence, easier for merchants to convert sales and grow, and easier for commerce to thrive.

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View source version on businesswire.com: https://www.businesswire.com/news/home/20210301005534/en/

FAQ

When will the lock-up period end for Affirm's shares?

The lock-up period for 10% of Affirm's shares will end on March 3, 2021.

How many shares of Affirm will become eligible for sale?

Up to 15.6 million shares of Affirm will become eligible for sale.

What conditions were met for the early lock-up release of Affirm's shares?

The conditions for the early release were satisfied on February 26, 2021.

Who is affected by the lock-up agreements regarding Affirm's shares?

The lock-up agreements involve Affirm’s directors, officers, and greater than 1% stockholders.