MarketWise (MKTW) Launches Exchange Offer for Warrants

MarketWise (NASDAQ:MKTW), which combined with Ascendant Digital in July 2021, has launched an offer to exchange all outstanding warrants for 0.1925 shares each.

At the company’s current share price of $4.08, this amounts to a value of $0.79662 per warrant. MarketWise’s warrants (NASDAQ:MKTWW) closed Tuesday at $0.37, but are already up about +102.9% to $0.69 in the pre-market.

The company expects to issue 5,963,648 new common shares through the offering, adding to 27,933763 outstanding public common shares, increasing the float by 21%. Parties presenting 57.9% of public warrants and 52.4% of private placement warrants have already indicated they will accept the offer. Warrants that do not consent to be exchanged in the offer will automatically be exchanged at a 10% lower rate of 0.17325 shares per warrant.

MarketWise, formerly known as Beacon Street Group LLC, operates a portfolio of financial publications and digital information services to both free and paying subscribers. Earlier this month, it announced net revenue of $128 million in the second quarter of 2022, a 9.9% decline from the same period last year.

ADVISORS

• BofA Securities is serving MarketWise as the dealer manager for the exchange offer.
• D.F. King & Co. has been appointed as information agent for the offer.
• Continental Stock Transfer & Trust Company is serving as exchange agent for the offer.