Robinhood purchased 55.27M shares of company stock from USMS

In a regulatory filing, Robinhood Markets disclosed that on August 30, the company entered into a Share Purchase Agreement with the United States Marshal Service, or “USMS,” for and on behalf of the United States, pursuant to which the company agreed to purchase 55,273,469 shares of the company’s Class A common stock from the USMS. The transaction closed on August 31. “The sale of the Shares was approved by the United States District Court for the Southern District of New York pursuant to an interlocutory sales order, granted on August 28, 2023, providing for the sale of the Shares to the company free and clear of any claims, interests, liens and encumbrances. Pursuant to the Share Purchase Agreement, the company purchased the Shares for an aggregate purchase price of $605,694,411.59, or approximately $10.96 per share, which was determined based on the arithmetic average of the per share volume-weighted average price of the company’s Class A common stock over each of the five consecutive trading days preceding August 13, 2023, the date on which the United States filed a motion under seal with the United States District Court for the Southern District of New York requesting the Order. The company funded the purchase of the Shares from corporate cash available from its balance sheet. The company previously announced on February 8, 2023 that its Board of Directors had authorized it to pursue purchasing most or all of the Shares. As previously disclosed, the Shares were originally acquired by Emergent Fidelity Technologies, Ltd. The Shares were seized and were subsequently transferred to the custody of the United States,” the filing states.