Chad Roberts Converts 350,000 LLC Units to Class A at Flowco (FLOC)
Rhea-AI Filing Summary
Chad Roberts, EVP, Production Solutions of Flowco Holdings (FLOC) acquired 350,000 shares of Class A common stock on 08/06/2025 through the redemption and exchange of an equal number of Flowco MergeCo LLC Common Units and paired Class B common stock. After this exchange he directly beneficially owns 387,500 shares of Class A common stock.
The filing shows the conversion involved 350,000 LLC interests paired with Class B shares that are exchangeable into Class A shares (or, at the issuer's election, cash under the Restated LLC Agreement). Upon an exchange, the corresponding Class B shares, which carry one vote per share, generally will be cancelled.
Positive
- Acquisition of 350,000 Class A shares via redemption/exchange, increasing direct Class A holdings to 387,500 shares.
- Conversion mechanism explicit: Paired Common Units and Class B shares are exchangeable into Class A shares (or cash at issuer election) per the Restated LLC Agreement.
Negative
- Cancellation of Class B voting shares: Upon exchange the corresponding Class B common shares generally will be cancelled, reducing those voting units associated with the exchanged interests.
- Transaction price reported as $0 for the derivative entry in Table II, indicating the shares were received in a non-cash exchange rather than a market purchase.
Insights
Insider converted 350,000 paired interests into Class A shares, raising direct Class A holdings to 387,500.
The Form 4 discloses a non-cash exchange on 08/06/2025 whereby 350,000 Common Units paired with Class B common stock were redeemed and converted into 350,000 Class A shares, increasing the reporting person’s direct Class A position to 387,500 shares. The filing also shows 568,016 derivative securities beneficially owned following the transaction, reflecting the reporting person’s broader economic exposure documented on Table II.
Exchange of paired interests converts economic units into common equity and generally cancels associated Class B voting shares.
The explanatory note states each Common Unit is paired with one share of Class B common stock and that, upon exchange, the paired Class B share generally will be cancelled. This transaction therefore changes the composition of share classes held by the reporting person and removes the paired Class B voting units associated with the exchanged interests, as described in the Restated LLC Agreement.