Ideanomics Inc (IDEX)

[lesgetrich]

PR today...

05:56 AM EST, 02/16/2021 (MT Newswires) -- Ideanomics (IDEX) shareholders may sell from time to time up to 12.6 million common shares, according to a registration statement filed with the Securities and Exchange Commission late Friday.

...Friday's registration statement...

Form S-3ASR

The selling securityholders named in this prospectus may use this prospectus to offer and resell from time to time up to 12,589,350 shares (the “Shares”) of our common stock, par value $0.0001 per share (“Common Stock”). As previously disclosed on our Current Report on Form 8-K filed with the Commission on January 19, 2021, on January 15, 2021, the Company acquired 100% of privately held Wireless Advanced Vehicle Electrification, Inc. (“WAVE”) for an aggregate purchase price of $50,000,000 in a combination of $15,000,000 of cash and $35,000,000 worth of Ideanomics Common Stock as consideration (such $35,000,000 worth of Ideanomics Common Stock, the “WAVE Transaction Consideration Common Stock”), subject to customary purchase price adjustments. WAVE is a provider of wireless charging solutions for medium and heavy-duty electric vehicles. The WAVE Transaction Consideration Common Stock was issued to the former stockholders of WAVE (the “Selling Securityholders”) in reliance upon an exemption from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”). The Company has since agreed with the Selling Securityholders to register the WAVE Transaction Consideration Common Stock under the Securities Act. We will receive no proceeds from any sale by the Selling Securityholders of the shares of Common Stock offered by this prospectus and any prospectus supplement, but we have agreed to pay certain registration expenses.



We will not receive any of the proceeds from the sale of the Shares by the selling securityholders.

...Apparently, the company is telling us that, per the terms of the acquisition of Wave, the Wave shareholders were paid in Ideanomics shares. Those shareholders are now free to sell up to 12,589,350 of their shares as they see fit. Note, over 33 million shares of IDEX changed hands last Friday alone so this should not have any major impact on the share price.