A Lorne Weil, a major owner of Hydra Industries Acquisition Corp. and Hydra Industries Acquisition Corp.'s Executive Chairman and a director of the company, recently disposed of 710,000 shares of the company. The disposals took place at $0.00 per share, on December 23, 2016. Weil now owns just 476,308 shares of the company. Weil operates out of New York, NY. Some additional info was provided as follows:
As an inducement to the agreement of certain institutional and accredited investors (the "Purchasers") to purchase shares of Inspired Entertainment, Inc., formerly known as Hydra Industries Acquisition Corp. (the "Issuer"), from public stockholders in advance of the Issuer's proposed business combination, Hydra Industries Sponsor LLC (the "Sponsor") agreed to transfer
710,000 shares of founder common stock and 910,000 private placement warrants to the Purchasers following the closing of such business combination.
The shares and warrants owned indirectly are held by the Sponsor and are beneficially owned by A. Lorne Weil, who has sole voting and dispositive power over the shares held by the Sponsor. Mr. Weil, B. Luke Weil, a son of Mr. Weil, and trusts owned by Mr. Weil's children, B. Luke Weil, Nicholas Weil, Francesca Weil, and Alexander Weil, own all of the membership interests in the Sponsor. Mr. Weil may be deemed the beneficial owner of the securities held by the Sponsor and has sole voting and dispositive control over such securities. Mr. Weil disclaims beneficial ownership over any securities owned by the Sponsor in which he does not have any pecuniary interest.
In connection with the Issuer's IPO on October 24, 2014, Mr. Weil acquired 4,200,000 warrants, for an aggregate purchase price of $2,100,000, that could only become eligible for exercise upon consummation of the Issuer's initial business combination. Since the exercise of the warrants was contingent upon the closing of the business combination, these warrants were not reported at the time of acquisition. The acquisition is being reported now in connection with the Issuer's consummation of a business combination on December 23, 2016.
In connection with the inducement referenced in Footnote 1, MIHI LLC, an initial sponsor of the Issuer's IPO, agreed to transfer 3,500,000 private placement warrants to the Sponsor.
In order to preserve the Issuer's liquidity, the Sponsor agreed to accept repayment from the Issuer for $539,615.20 payable upon consummation of the business combination in the form of warrants, at a price of $0.50 per warrant.
The exercise price of the warrants is $5.75 per half share. Warrants may only be exercised for whole shares (2 warrants at $11.50 per share).
The above information was disclosed in a filing to the SEC. To see the filing, click here.
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