For those who, like me, participated in PreIPO Robinhood: what to do and what options

I participated in PreIPO at $ 13 per share. Now the price is $ 35.

Received an explanation from the manager.

Below are the terms of the Robinhood IPO lockup:

It will be possible to sell up to 10% of the shares if the price increase is in the range from + 33% to + 50% and it will be possible to sell up to 20% of the shares if the price increase exceeds 50% of the IPO price within 9 out of 14 days until:

1) expiration of 90 days (approximately 10/26/21) from the date of the final prospectus (approximately 07/28/21)

2) publication of quarterly results (tentatively November 2021)

It will be possible to sell 100% of the shares without any conditions, most likely 126 days after the publication of the final prospectus. Why «most likely» — because the prospectus lists the total lock-up period as 126 days, but it refers to the lock-up agreement, which is drafted for 181 days.

We assume that the next iteration will change 181 days to 126 days. But it will be possible to say for sure only when it is sent for signing.

I’ll try to explain with an example.

When it will be possible to sell 10% of the shares:

Let’s say the placement price is $ 42.

The price has risen, for example, by 33% -> $ 55.86.

26.10 expires 90 days from the date of the final prospectus.

To sell 10%, the price must be above $ 55.86 9 days out of 14 in the period from 12.10 — 26.10, then the first condition is fulfilled.

For the second condition to be fulfilled, the price must be $ 55.86 or higher 9 days out of 14 in the period from 11/10/21 — 11/24/21 (if the conditionally quarterly report is on November 24)

And if both of these conditions are met, then we will be able to sell 10% of the shares.

When it will be possible to sell 20% of the shares:

Let’s say the placement price is $ 42.

The price has risen, for example, by 51% -> $ 63.42.

26.10 expires 90 days from the date of the final prospectus.

To sell 10%, the price must be above $ 63.42 9 days out of 14 in the period from 12.10 — 26.10, then the first condition is met.

For the second condition to be satisfied, the price must be $ 63.42 or higher 9 days out of 14 in the period from 11/10/21 — 11/24/21 (if the conditionally quarterly report is on November 24)

And if both of these conditions are met, then we will be able to sell 20% of the shares.

In general, in a nutshell, we are waiting for 4 months and you can sell. I will not sell. I will wait for the delivery of securities and transfer them to IB and below $ 100 per share I will not even look in the direction of their sale.

Everyone buen fin de semana, amigos)

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