Falcon's Beyond Global Announces Filing of Information Statement Relating to Mandatory Exchange of Warrants Aimed at Simplifying the Company's Capital Structure
December 16 2024 - 9:00AM
Business Wire
Falcon’s Beyond Global, Inc. (Nasdaq: FBYD) (“Falcon’s Beyond,”
“Falcon’s,” or the “Company”), a leading innovator in immersive
storytelling through its divisions Falcon’s Creative Group (“FCG”),
Falcon’s Beyond Destinations (“FBD”), and Falcon’s Beyond Brands
(“FBB”), today is pleased to announce that it has filed with the
Securities and Exchange Commission its definitive Information
Statement on Schedule 14C (the “Information Statement”) pursuant to
Section 14(c) of the Securities Exchange Act of 1934, as amended.
The purpose of the Information Statement is to notify holders of
the Company’s publicly-traded warrants (the “Warrants”) of the
mandatory exchange of the Warrants on October 6, 2028 (the
“Exchange Date”) for shares of the Company’s Class A common stock,
par value $0.0001 per share (“Class A Common Stock”) at an exchange
ratio of 0.25 shares of Class A Common Stock per Warrant (the
“Exchange Ratio”). The Company mailed the Information Statement to
the holders of the Warrants on December 13, 2024.
The mandatory exchange is pursuant to an amendment dated
November 15, 2024 to the warrant agreement, dated November 3, 2023,
by and between the Company and Continental Stock Transfer &
Trust Company, the Warrant Agent. The amendment was authorized by
holders of more than 50% of the Warrants.
This initiative simplifies the Company’s capital structure and
provides an opportunity for Warrant holders to convert their
holdings into equity in Falcon’s Beyond at a fixed exchange
ratio.
“We are pleased to announce the Warrant exchange as part of our
efforts to simplify our capital structure. It’s great to see
Warrant holders actively working with us to achieve an amendment
that we believe benefits to both the Company and its Warrant
holders by increasing the chances that all Warrant holders receive
an economic benefit from their Warrants, improving the probability
of economic accretion to our stockholders by reducing the potential
dilutive impact of the warrants, thereby providing us with more
flexibility for financing our operations,” said Simon Philips,
President of Falcon’s Beyond. “This action underscores our
commitment to maximizing stockholder value and reflects our focus
on creating an environment conducive to supporting the chances of
long-term stock price appreciation.”
The Amendment will become effective on January 14, 2025 (the
“Effective Date”), the next business day following the twentieth
business day after the mailing of the Information Statement to the
holders of the Warrants. From the Effective Date until the Exchange
Date, the Warrants will no longer be exercisable and will only
entitle holders to receive shares of Class A Common Stock at the
Exchange Ratio on the Exchange Date. The Warrants are expected to
remain listed on Nasdaq until the Exchange Date, although continued
listing after the Effective Date cannot be guaranteed.
After the Effective Date, the Exchange Ratio will be
appropriately adjusted in the event of any stock dividend, stock
split, consolidation, combination, reverse stock split, or
reclassification of shares of Class A Common Stock or other similar
event. The Exchange Ratio will not be adjusted after the Effective
Date to reflect the stock dividend declared by the Company on
September 30, 2024 and payable on December 17, 2024.
For more information and the detailed description of the
Amendment, see the Definitive Information Statement on Schedule
14C, filed by Falcon’s with the SEC on December 13, 2024.
About Falcon’s Beyond
Falcon’s Beyond is a visionary innovator in immersive
storytelling, sitting at the intersection of three potential high
growth business opportunities: content, technology, and
experiences. Falcon’s Beyond propels intellectual property (IP)
activations concurrently across physical and digital experiences
through three core business units:
- Falcon’s Creative Group creates master plans, designs
attractions and experiential entertainment, and produces content,
interactives, and software.
- Falcon’s Beyond Destinations develops a diverse range of
entertainment experiences using both Falcon’s Beyond owned and
third party licensed intellectual property, spanning location-based
entertainment, dining, and retail.
- Falcon’s Beyond Brands endeavors to bring brands and
intellectual property to life through animation, movies, licensing
and merchandising, gaming as well as ride and technology
sales.
Falcon’s Beyond also invents immersive rides, attractions, and
technologies for entertainment destinations around the world.
FALCON’S BEYOND and its related trademarks are owned by Falcon’s
Beyond.
Falcon’s is headquartered in Orlando, Fla. Learn more at
falconsbeyond.com.
Falcon’s Beyond may use its website as a distribution channel of
material Company information. Financial and other important
information regarding the Company is routinely accessed through and
posted on our website at https://investors.falconsbeyond.com.
In addition, you may automatically receive email alerts and
other information about Falcon’s when you enroll your email address
by visiting the Email Alerts section at
https://investors.falconsbeyond.com.
CAUTIONARY STATEMENT REGARDING
FORWARD-LOOKING STATEMENTS
This press release contains statements that are “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. When used in this press release, words such as
“will”, “expected” and similar expressions identify forward-looking
statements, but the absence of these words does not mean that a
statement is not forward-looking. Forward-looking statements are
subject to risks and uncertainties that could cause actual results
to differ from those expressed in or implied by the forward-looking
statements, including (1) our ability to maintain the listing of
our Warrants on Nasdaq or to list the shares of Class A Common
Stock issuable upon the Exchange on Nasdaq; (2) the concentration
of share ownership and the significant influence of the Demerau
Family and Cecil D. Magpuri, (3) our continued compliance with
Nasdaq continued listing standards, (4) risks related to our Up-C
entity structure and the fact that we may be required to make
substantial payments to certain unitholders under our Tax
Receivable Agreement, and the risks disclosed under the caption
“Risk Factors” in the Company’s Annual Report on Form 10-K, as
filed with the Securities and Exchange Commission on April 29,
2024, and the Company’s other filings with the Securities and
Exchange Commission. The forward-looking statements herein speak
only as of the date of this press release, and the Company
undertakes no obligation to publicly update or revise any
forward-looking statement as a result of new information, future
events or otherwise, except as otherwise required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20241216403272/en/
Media Relations: Kathleen Prihoda, Falcon’s Beyond
kprihoda@falconsbeyond.com
Investor Relations: ir@falconsbeyond.com
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