Adjustment to Terms of HYMCZ Warrants
In May 2020, MUDS Acquisition Sub, Inc. (“MUDS”) acquired Hycroft Mining Corporation’s (“HMC”) equity interests in its direct subsidiaries and substantially all of its other assets and assumed substantially all of the liabilities of HMC, including a certain Warrant Agreement dated October 22, 2015. That Warrant Agreement requires adjustment to the associated issued and outstanding warrants (Nasdaq: HYMCZ) when Hycroft Mining Holding Corporation (formerly MUDS) issues equity to “Restricted Persons” as defined in the Warrant Agreement.
On August 3, 2022, the Company issued a notice of adjustments under the Warrant Agreement notifying the holders of the outstanding HYMCZ warrants originally issued by HMC. As a result of the issuance of equity awards under the HYMC 2020 Performance and Incentive Pay Plan in the aggregate amount of 2,570,602 restricted stock units convertible into shares of Common Stock and the prospective issuance of up to 500,000 shares of Common Stock to Restricted Persons, the HYMCZ warrant terms were adjusted as follows:
the exercise price of each HYMCZ Warrant is decreased from $40.31 per share of Common Stock to $39.90 per share of Common Stock; (2) the number of shares of Common Stock issuable upon exercise of each HYMCZ Warrant is increased from 0.28055 to 0.28347; and (3) as adjusted, the aggregate number of shares of Common Stock issuable upon full exercise of the 12,721,901 outstanding HYMCZ Warrants is increased from 3,569,051 to 3,606,256 shares of Common Stock.
