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What Is Going on With Cryptyde (TYDE) Stock Today?

  • Cryptyde (TYDE) has filed for the resale of 71.27 million shares.
  • Hudson Bay was revealed as the selling shareholder.
  • Shares of TYDE stock are down about 10% on the news.
TYDE stock - What Is Going on With Cryptyde (TYDE) Stock Today?

Source: Chinnapong / Shutterstock

Cryptyde (NASDAQ:TYDE) stock is sinking 10% after the company filed for the resale of 71.27 million shares. Hudson Bay Capital, an asset management firm with over $13 billion in 13F assets under management (AUM), was named as the selling stockholder. The 71.27 million shares consist of 15,050,315 million shares of common stock issuable upon the conversion of January 2022 notes and 56,226,410 shares of common stock that are issuable upon the conversion of January 2022 warrants. Hudson may sell these shares at any time.

On Jan. 26, Cryptyde entered into an agreement with Hudson for the issuance and sale of January 2022 notes with a principal amount of $33.33 million and a conversion price of $10. The company also agreed to provide Hudson with warrants to purchase up to 3.33 million shares with an initial exercise price of $10.

However, Cryptyde amended the January purchase agreement with Hudson on July 28. Let’s get into the details.

What’s Going on With TYDE Stock?

First, Cryptyde released $29 million from its restricted funds account. Going forward, it must deposit 50% of any warrant exercise cash into the account. The company used $22 million of the released funds to repurchase $22 million of the principal of the January 2022 notes. As for the remaining notes, the conversion price was voluntarily adjusted to $1.06. The amendment also required Cryptyde to register the number of common shares equal to “200% of the shares issuable upon conversion of the January 2022 Note” and “200% of the shares issuable upon exercise of the January 2022 Warrant.”

This means that Cryptyde was required to register 15.05 million January 2022 note shares and 56.22 million January 2022 warrant shares. This would dilute existing shareholders when the warrants and notes are exercised.

Cryptyde will not receive proceeds from the exercise of the January 2022 notes. However, it will receive proceeds from the exercise of the January 2022 warrants. The company did not dive into great detail into what it would use the warrants for, explaining that they would be used for “general corporate purposes.”

Meanwhile, Hudson may sell the shares through the private or public market. The firm also has the option to sell the shares through an underwriter or a broker-dealer.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.


Article printed from InvestorPlace Media, https://investorplace.com/2022/08/what-is-going-on-with-cryptyde-tyde-stock-today-hudson/.

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