Shopify unit exercises Klaviyo derivative rights
Shopify Strategic Holdings 3 LLC, a subsidiary of Shopify Inc. and a significant holder of Klaviyo, Inc., exercised derivative positions linked to Klaviyo stock.
Rhea-AI Filing Summary
Shopify Strategic Holdings 3 LLC, a subsidiary of Shopify Inc. and a significant holder of Klaviyo, Inc., exercised derivative positions linked to Klaviyo stock. The entity exercised rights over a total of 688,762 shares through two in-the-money derivative exercises, each involving 344,381 shares. Following these transactions, the filing shows 16,973,108 shares held after one exercise and 1,721,912 derivative warrant shares remaining after the other, indicating a large continuing position in Klaviyo. Shopify Inc. is listed as an indirect beneficial owner and disclaims ownership beyond its economic interest.
Positive
- None.
Negative
- None.
Insider Trade Summary
688,762 shares exercised/converted
Exercise
2 txns
Insider
Shopify Strategic Holdings 3 LLC, SHOPIFY INC.
Role
10% Owner | 10% Owner
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| In-the-Money Exercise | Warrants to Purchase Series B Common Stock (Right to Buy) | 344,381 | $0.00 | $0.00 |
| In-the-Money Exercise | Series B Common Stock | 344,381 | $0.01 | $3K |
Holdings After Transaction:
Warrants to Purchase Series B Common Stock (Right to Buy) — 1,721,912 contracts (Direct);
Series B Common Stock — 16,973,108 contracts (Direct)
Footnotes (3)
- F1. 25% of the shares subject to the warrants vested on July 28, 2022, and the remaining shares vest quarterly in equal amounts through July 28, 2027. Notwithstanding the foregoing, in connection with the Issuer's initial public offering ("IPO"), 25% of the total number of shares subject to the warrants vested immediately prior to the completion of the IPO.
- F2. Reflects securities held directly by Shopify Strategic Holdings 3 LLC, a wholly-owned subsidiary of Shopify Inc. ("Shopify"). Shopify is an indirect beneficial owner and disclaims beneficial ownership except to the extent of its pecuniary interest therein.
- F3. Each share of Series B Common Stock is convertible at any time at the option of the holder into one share of Series A Common Stock of the Issuer, and will automatically convert into Series A Common Stock upon the occurrence of certain events as set forth in the Issuer's certificate of incorporation. The Series B Common Stock has no expiration date.
Key Figures
Total derivative shares exercised: 688,762 shares
Shares per derivative exercise: 344,381 shares
Exercise price per share: $0.01/share
+3 more
6 metrics
Total derivative shares exercised
688,762 shares
Aggregate of two in-the-money derivative exercises
Shares per derivative exercise
344,381 shares
Underlying shares in each of the two X-code exercises
Exercise price per share
$0.01/share
Transaction price for 344,381 Series B-linked shares
Shares following transaction
16,973,108 shares
Total shares reported following one derivative exercise
Warrants remaining after exercise
1,721,912 shares
Total warrant-linked shares following warrant exercise
Warrant expiration date
July 28, 2032
Expiration for warrants to purchase Series B Common Stock
Key Terms
in-the-money derivative exercise, Warrants to Purchase Series B Common Stock, Series B Common Stock, convertible, +1 more
5 terms
in-the-money derivative exercise financial
"transaction_action: "in-the-money derivative exercise" for both entries"
Warrants to Purchase Series B Common Stock financial
"security_title: "Warrants to Purchase Series B Common Stock (Right to Buy)""
Series B Common Stock financial
"security_title: "Series B Common Stock" and related footnotes"
convertible financial
"Each share of Series B Common Stock is convertible at any time"
A convertible is a type of investment that starts as a loan or preferred stake (like a bond or preferred share) but can be exchanged for common shares of the company at a set price or under certain conditions. It matters to investors because it offers a mix of steady income and downside protection like a loan, plus the upside of stock ownership if the company does well—similar to holding a coupon that you can trade for a full ticket if the event becomes valuable.
initial public offering ("IPO") financial
"in connection with the Issuer's initial public offering ("IPO"), 25% ... vested"
A company’s first sale of stock to the public through a stock exchange, marking its move from private ownership to public ownership. For investors it creates a new opportunity to buy a stake early, sets a market price for the business, and often brings higher attention and volatility—think of a local bakery that used to be family-run finally selling shares so the whole neighborhood can own a piece; that change affects value, control and risk.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What did Shopify Strategic Holdings 3 LLC do in this Klaviyo (KVYO) Form 4 filing?
Shopify Strategic Holdings 3 LLC exercised in-the-money derivative securities tied to Klaviyo. It exercised two positions of 344,381 shares each, totaling 688,762 shares, increasing its direct shareholdings while still retaining a substantial remaining derivative warrant position in the company.
What prices were paid in Shopify Strategic Holdings’ Klaviyo (KVYO) derivative exercises?
One derivative exercise in the filing lists a transaction price of $0.01 per share for 344,381 shares. Another related warrant exercise shows a $0.01 conversion or exercise price, highlighting that these were deeply in-the-money positions relative to Klaviyo’s underlying equity value.
How large is Shopify Strategic Holdings 3 LLC’s Klaviyo (KVYO) position after these exercises?
After one exercise, total shares following the transaction are reported as 16,973,108. After the warrant-related exercise, derivative warrants covering 1,721,912 shares remain, indicating Shopify Strategic Holdings continues to hold a sizable direct and derivative exposure to Klaviyo stock.
What role does Shopify Inc. play in this Klaviyo (KVYO) Form 4 transaction?
The securities are held directly by Shopify Strategic Holdings 3 LLC, a wholly owned Shopify Inc. subsidiary. Shopify Inc. is described as an indirect beneficial owner and specifically disclaims beneficial ownership beyond the extent of its pecuniary, or economic, interest in those securities.
What do the vesting terms of the Klaviyo (KVYO) warrants held by Shopify indicate?
The warrant footnote states 25% vested on July 28, 2022, with the remainder vesting quarterly through July 28, 2027. Additionally, 25% of the total warrant shares vested immediately before Klaviyo’s IPO, creating a structured, long-term vesting schedule for these strategic warrant holdings.
AI-generated analysis. How Rhea-AI works. Not financial advice.
