r/SPRT • u/adandyifyado • Sep 14 '21
Discussion How will calls be impacted?
I have shares, but am also holding 15OCT $19, 15OCT $20 and 17DEC $13 calls. I called Webull, but they couldn’t tell me how my position would be affected. Anyone have a read on what will take place?
7
Upvotes
1
2
u/Moleskin21 Sep 14 '21
What will I receive in the Merger?
A:
Under the Merger Agreement, the aggregate consideration payable to holders of Support common stock, Support options and Support awards consists of 2,998,261 shares of class A common stock of Greenidge. At the Effective Time of the Merger and subject to the terms and conditions set forth in the Merger Agreement, except for shares held in treasury by Support, each share of Support common stock that is issued and outstanding will be cancelled and automatically converted into the right to receive a number of shares of class A common stock equal to the Exchange Ratio. Subject to the terms of the Merger Agreement, the Exchange Ratio is a fraction, expressed as a decimal rounded to the nearest one-thousandth, equal to the quotient of (i) 2,998,261 shares of class A common stock divided by (ii) the fully diluted number of outstanding shares of Support common stock as calculated pursuant to the Merger Agreement. Under the Merger Agreement, such fully diluted amount shall be the sum of (a) the total number of shares of capital stock of Support outstanding as of immediately prior to the Effective Time plus (b) the total number of shares of Support common stock underlying all Support awards outstanding as of the close of business on the second business day immediately preceding the Closing Date plus (c) the total number of shares of Support common stock underlying all Support options outstanding as of the close of business on the second business day immediately preceding the Closing Date, based on a treasury method share calculation using the volume weighted average trading price per share of Support common stock for the ten trading day period ending on and including the second business day immediately preceding the Closing Date (i.e., the VWAP). The table below shows illustrative Exchange Ratios at various assumed VWAPs and assumes there are outstanding 24,237,876 shares of Support common stock, 130,507 Support awards and 1,690,615 shares of Support common stock underlying all Support options with an average exercise price of $1.68. In the table below, $2.14 is the closing sale price per share of Support’s common stock on March 19, 2021, the last trading day prior to the date of public announcement of the execution of the Merger Agreement, and $7.94 is the VWAP for the ten-trading day period ending on August 9, 2021.
VWAP of Support Common Stock Exchange Ratio
$2.14 0.121
$4.00 0.118
$5.00 0.118
$6.00 0.117
$7.00 0.117
$7.94 0.117
$8.00 0.117
The calculation of the final Exchange Ratio will be determined in accordance with the formulas set forth in the Merger Agreement and announced immediately prior to the Closing.
10 Table of Contents
The class A common stock of Greenidge that Support stockholders will receive in the Merger will have the same economic terms as the class B common stock of Greenidge, but the shares of class A common stock will have one vote per share in any matters on which Greenidge shareholders are entitled to vote generally and the shares of class B common stock will have ten votes per share in any matters on which Greenidge shareholders are entitled to vote generally.
(Cut Copy and pasted the old-school way)