Wheels Up Announces Investors Agree to One-Year Lock-Up Extension

Rhea-AI Summary

Wheels Up Experience Inc. (NYSE: UP) announced that its lead investors have agreed to extend the lock-up restriction on their shares of common stock for an additional year, until September 20, 2025. Approximately 97.2% of the shares issued under the Investment and Investor Rights Agreement will remain subject to this extended lock-up.

The agreement includes:

• Delta Air Lines, Inc., CK Wheels , and Cox Investment Holdings, extending the lock-up for all their shares
• Kore Capital and funds managed by Whitebox Advisors extending the lock-up for 72.5% of their shares

Wheels Up CEO George Mattson expressed appreciation for the investors' confidence and support, stating that this extended commitment allows the company to continue executing its strategic plan.

Positive

• Lead investors agreed to extend share lock-up period, potentially reducing stock volatility
• 97.2% of shares issued under the Investment and Investor Rights Agreement remain locked up until September 20, 2025
• Extended lock-up demonstrates investor confidence in the company's strategic plan

Negative

• None.

News Market Reaction – UP

-13.56%

1 alert

-13.56% News Effect

On the day this news was published, UP declined 13.56%, reflecting a significant negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Approximately 97.2% of lead investor shares will remain subject to the lock-up restriction until September 20, 2025

ATLANTA, Sept. 23, 2024 /PRNewswire/ -- Wheels Up Experience Inc. (NYSE: UP) today announced that lead investors, Delta Air Lines, Inc., CK Wheels LLC, and Cox Investment Holdings, LLC, agreed to extend the lock-up restriction with respect to all their shares of common stock issued under the Investment and Investor Rights Agreement, for an additional year, until September 20, 2025. In addition, Kore Capital LLC and funds managed by Whitebox Advisors LLC, agreed to extend the lock-up restriction with respect to 72.5% of their shares until September 20, 2025. As a result, approximately 97.2% of the shares issued under the Investment and Investor Rights Agreement will remain subject to a lock-up restriction until September 20, 2025.

"I appreciate the confidence and support of the company's lead investors," said Wheels Up Chief Executive Officer George Mattson. "We believe that this extended commitment by our investors allows us to continue to execute on our strategic plan."

Concurrently with this announcement, the company is filing a Current Report on Form 8-K with the SEC related to the extension of the lock-up restrictions. 

About Wheels Up
Wheels Up is a leading provider of on-demand private aviation and one of the largest companies in the industry. Wheels Up offers a complete global aviation solution with a large and diverse fleet and a global network of safety-vetted charter operators, all backed by an uncompromising commitment to safety and service. Customers can access charter and membership programs, as well as unique commercial travel benefits through a one-of-a-kind, strategic partnership with Delta Air Lines. Wheels Up also offers cargo, safety and security solutions and managed services to individuals, industry, government and civil organizations.

Wheels Up is guided by the mission to deliver a premium solution for every customer journey. With the Wheels Up mobile app and website, members and customers have the digital convenience to search, book and fly.

Cautionary Note Regarding Forward-Looking Statements
This press release contains certain "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to known and unknown risks, uncertainties, assumptions, and other important factors, many of which are outside of the control of Wheels Up Experience Inc. ("Wheels Up").  The words "anticipate," "continue," "could," "expect," "plan," "potential," "should," "would," "pursue" and similar expressions, may identify forward-looking statements, but the absence of these words does not mean that statement is not forward-looking.  Factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements can be found in Wheels Up's Annual Report on Form 10-K for the year ended December 31, 2023, filed with the U.S. Securities and Exchange Commission (the "SEC") on March 7, 2024 and Wheels Up's other filings with the SEC from time to time. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Except as required by law, Wheels Up does not intend to update any of these forward-looking statements after the date of this press release.

For more information, please visit: wheelsup.com

Media Contact
press@wheelsup.com

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SOURCE Wheels Up

FAQ

When does the extended lock-up period for Wheels Up (UP) shares expire?

The extended lock-up period for approximately 97.2% of Wheels Up (UP) shares issued under the Investment and Investor Rights Agreement expires on September 20, 2025.

Which investors agreed to extend the lock-up period for Wheels Up (UP) shares?

Delta Air Lines, Inc., CK Wheels , Cox Investment Holdings, , Kore Capital , and funds managed by Whitebox Advisors agreed to extend the lock-up period for Wheels Up (UP) shares.

What percentage of Wheels Up (UP) shares are affected by the lock-up extension?

Approximately 97.2% of Wheels Up (UP) shares issued under the Investment and Investor Rights Agreement are affected by the lock-up extension.

How long is the lock-up extension for Wheels Up (UP) shares?

The lock-up extension for Wheels Up (UP) shares is for an additional year, until September 20, 2025.