Hippo 1-for-25 Reverse Stock Split to Become Effective at 11:59 p.m. EDT September 29, 2022

Rhea-AI Summary

Hippo Holdings Inc. (NYSE: HIPO) has announced a 1-for-25 reverse stock split effective at 11:59 p.m. EDT on September 29, 2022. Post-split, every 25 shares will convert into one share of common stock, and fractional shares will be compensated in cash. The reverse split will not affect stockholders' percentage interest in the company. The exercise price for outstanding warrants will be adjusted to $287.50 per share. Trading under the new adjusted stock structure begins on September 30, 2022.

Positive

• The reverse stock split may enhance the stock's perceived value and attract institutional investors.
• No fractional shares will complicate ownership, simplifying shareholder equity.
• The adjustment of warrants aligns the exercise price with the new share structure.

Negative

• A reverse stock split often signals underlying financial struggles, potentially affecting investor confidence.

PALO ALTO, Calif.--(BUSINESS WIRE)-- Hippo Holdings Inc. (NYSE: HIPO), the home insurance group focused on proactive home protection, today announced that it has filed a Certificate of Amendment to its Certificate of Incorporation with the Secretary of State of the State of Delaware to effect the previously announced 1-for-25 reverse stock split of the company’s common stock and a corresponding adjustment to its authorized capital stock. The reverse stock split and corresponding capital stock adjustment will become effective at 11:59 p.m. Eastern Daylight Time on September 29, 2022. The company’s common stock will begin trading on a split-adjusted basis when the markets open on Friday, September 30, 2022, under the existing trading symbol “HIPO” and new CUSIP number: 433539 202.

As a result of the reverse stock split, every 25 shares of the Company's issued and outstanding common stock will automatically be converted into one share of issued and outstanding common stock. No fractional shares will be issued as a result of the reverse stock split. Instead, stockholders who otherwise would be entitled to receive fractional shares of common stock will be entitled to receive cash. The reverse stock split affects all stockholders uniformly and will not alter any stockholder's percentage interest in the Company's outstanding common stock, except for adjustments that may result from the treatment of fractional shares.

All outstanding warrants to purchase the Company’s common stock will be adjusted as a result of the reverse stock split in accordance with the terms of the warrants. In particular, every 25 shares of Hippo common stock that may be purchased pursuant to such warrants will represent one share of Hippo common stock that may be purchased pursuant to such warrants, and the exercise price per share will be $287.50, which equals the product of 25 multiplied by $11.50, the exercise price per share prior to the reverse stock split.

About Hippo

Hippo is protecting the joy of homeownership, helping to safeguard customers’ most important financial asset by harnessing the power of real-time data, smart home technology, and a growing suite of home services to deliver proactive home protection.

Hippo Holdings Inc.’s (NYSE: HIPO) operating subsidiaries include Hippo Insurance Services, Hippo Home Care, First Connect Insurance Services, Spinnaker Insurance Company, Spinnaker Specialty Insurance Company, and Mainsail Insurance Company. Hippo Insurance Services is a licensed property casualty insurance agent with products underwritten by various affiliated and unaffiliated insurance companies. For more information, including licensing details, visit http://www.hippo.com.

Forward-looking statement safe harbor

Certain statements included in this press release that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, the company’s reverse stock split and the expected timing of events related thereto. These statements are based on the current expectations of Hippo’s management and are not predictions of actual performance. Actual events and circumstances are subject to risks and uncertainties, are difficult or impossible to predict and will differ from assumptions, and many actual events and circumstances are beyond the control of Hippo. If any of these risks materialize or our assumptions prove incorrect, actual events and timing could differ materially from the events and timing implied by these forward-looking statements. There may be additional risks and uncertainties that Hippo does not presently know, or that Hippo currently believes are immaterial, that could also cause actual events and timing to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Hippo’s expectations, plans, or forecasts of future events and views as of the date of this press release. Hippo anticipates that subsequent events and developments will cause Hippo’s assessments to change. However, while Hippo may elect to update these forward-looking statements at some point in the future, Hippo specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Hippo’s assessments of any date or time subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220928006099/en/

Investors:

Cliff Gallant, VP of Investor Relations

investors@hippo.com

Press:

Mark Olson

press@hippo.com

Source: Hippo

FAQ

What is the reason behind Hippo's reverse stock split on September 29, 2022?

Hippo is implementing the reverse stock split to potentially enhance the stock's market value and attract institutional investors.

How will the reverse stock split affect my shares of Hippo (HIPO)?

Post-split, every 25 shares you own will convert into 1 share, and fractional shares will be compensated in cash.

When will Hippo begin trading on a split-adjusted basis?

Hippo's stock will begin trading on a split-adjusted basis on September 30, 2022.

What will happen to my stock warrants after the reverse split?

The exercise price and share representation of outstanding warrants will be adjusted to reflect the reverse stock split.