SGII - Redbox enters warrant exercise deal as heavy buyout spread remains

Redbox Entertainment (NASDAQ:RDBX) has entered into a warrant exercise letter agreement with special-purpose acquisition company Seaport Global (SGII). In the deal, Seaport or its affiliate will exercise 1M private placement warrants at $11.50 per share. That means Redbox would receive $11.5 million in cash, but wouldn't receive any proceeds from the sale of underlying shares. And Seaport's move may dent bullish investors' hopes that insiders hold on to their stock after a hefty run higher. Those warrants were underwater immediately after the SPAC deal, Wedbush analyst Michael Pachter notes, so a stellar meme-driven run in Redbox has provided the opportunity for warrant holders to cash them out. Redbox stock (RDBX) is down 13.2% Friday, pulling back after a massive one-month gain of 287%. Volume is low compared to the recent trading surge, at 5.7 million shares as of noon, vs. a recent full-day average of 21.1 million shares. Meanwhile it's

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Redbox enters warrant exercise deal, as heavy buyout spread remains