Warrant Example: Adyen and EBay

Warrant Example: Adyen and EBay

🔥NEW Payment company Adyen issued 403,724 shares after eBay exercised warrants as part of a long-term contract. This was reported by the Amsterdam company on 2 Dec. 2021 after the close of trading.
The shares were issued for pre-IPO price of 240 euros each and represent approximately 1.25 percent of the shareholding in Adyen. Today's actual price of the share Adyen is around 2300 Euro.
Adyen and eBay signed the contract in early 2018. In view of Adyen's impending IPO at the time, adding eBay as a customer was beneficial, a spokesperson for the Amsterdam company told ABM Financial News. This also meant at the time that eBay broke off its relationship with payment company PayPal, a major competitor of Adyen.
This is the first of a total of 4 tranches, which could further increase eBay's stake in Adyen to 5 percent. EBay is allowed to buy a fixed number of Adyen shares under the agreements if a certain milestone in terms of payment volumes is achieved.
Source: ABM Financial News.