Just a little more dilution prior to hold expiry ARC bought Class B shares of DWAC, a special purpose acquisition company intended to merge with another business and go public.
After DWAC merged with Trump Media, those Class B shares were supposed to automatically convert to Class A stock at a 1:1 ratio. But since the company issued more Class A shares after going public, a different stock-conversion ratio applied.
DWAC argued the ratio is 1.3481 to 1. ARC said it should be 1.8178 to 1. Will set the ratio in between the two, at 1.4911 to 1.
“ARC is entitled to 8,186,345 Class A shares in conversion for its 5,490,000 Class B shares,” Will wrote in a separate order.
She also ordered the parties to work with an escrow agent “for the release [of] the appropriate number of shares to satisfy ARC’s conversion rights” so that the investor “can freely sell or transfer those shares upon the expiration of the contractual lock-up.”