Strive Plans ATM Offering of Up to $1 Billion in SATS Preferred Stock

October 26 — According to a U.S. SEC filing, Strive, Inc. submitted a 424B5 prospectus supplement on October 26, announcing sales agreements with institutions including Cantor Fitzgerald, Barclays, Clear Street, StoneX, B. Riley, Maxim Group, and H.C. Wainwright, to issue up to $1 billion in aggregate of its 15.00% Series A Perpetual SATS Preferred Stock through an "at-the-market" (ATM) offering.

Agency commissions are up to 2.0% of the total offering proceeds. The SATS preferred stock is listed on the Nasdaq Global Market, closing at $94.88 per share on October 23, below the initial liquidation preference of $100. The preferred stock currently has 7 million shares outstanding, and the newly issued shares will have identical terms to the outstanding shares.

The preferred stock carries an annualized cumulative dividend rate of 15%, based on a $100 par value. The company established a dividend reserve at the IPO settlement on October 20, depositing $22.50 per share into an account to cover dividend payments for the first 18 months. Additionally, the company has the right to redeem all shares if the number of outstanding shares falls below 25% of the total issued in the initial offering and subsequent offerings, or upon the occurrence of a "tax event." In the event of a "fundamental change," holders have the right to require the company to repurchase shares at par value plus accrued and unpaid dividends.

[TechFlow]