Robinhood announced Wednesday that a Resale S-1 has been filed on behalf of a group of its shareholders that received Class A common stock upon the automatic conversion of Tranche 1 convertible notes related to the commission-free trading platform's IPO.
"The SEC staff informed Robinhood on August 13, 2021 that they are reviewing the Resale S-1," the company said. "Once the SEC staff completes its review, Robinhood intends to file an acceleration request asking the SEC to declare the Resale S-1 effective two business days later. We expect to make a public announcement when we file that request."
No sales can be made off the Resale S-1 until the SEC completes their review and declares it effective.
Robinhood's stock price took a hit in early August after the company revealed a group of its existing shareholders were planning to sell up to 97.9 million shares. Robinhood noted it would not receive any of the proceeds from the sale.
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An SEC spokesperson told FOX Business the agency does not comment on the existence or nonexistence of a possible investigation.