Newegg director He Zhitao reports major holdings
Newegg Commerce, Inc. director He Zhitao filed an initial ownership report showing a large indirect stake in the company.
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Form Type
3
Rhea-AI Filing Summary
Newegg Commerce, Inc. director He Zhitao filed an initial ownership report showing a large indirect stake in the company. He beneficially owns 11,141,079 common shares through Digital Grid (Hong Kong) Technology Co., Limited, which is wholly owned and controlled via Hangzhou Lianluo Interactive Technology Co., Ltd.
He also holds vested stock options exercisable for 684,869 common shares at an exercise price of $10.95 per share, as well as warrants to purchase 6,250 common shares at an exercise price of $352.00 per share. In addition, he beneficially owns 2,946 common shares through Hyperfinite Galaxy Holding Limited, which he owns outright.
Insider Trade Summary
4 transactions reported
Mixed
4 txns
Insider
He Zhitao
Role
Director
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| holding | Stock Options (right to buy) | -- | -- | -- |
| holding | Warrants (right to buy) | -- | -- | -- |
| holding | Common Shares, par value US$0.43696 per share | -- | -- | -- |
| holding | Common Shares, par value US$0.43696 per share | -- | -- | -- |
Holdings After Transaction:
Stock Options (right to buy) — 684,869 contracts (Direct);
Warrants (right to buy) — 6,250 contracts (Indirect, By Hangzhou Lianluo Interactive Technology Co., Ltd.);
Common Shares, par value US$0.43696 per share — 11,141,079 shares (Indirect, By Digital Grid (Hong Kong) Technology Co., Limited);
Common Shares, par value US$0.43696 per share — 2,946 shares (Indirect, By Hyperfinite Galaxy Holding Limited)
Footnotes (3)
- F1. Mr. Zhitao He beneficially owns (i) 11,141,079 common shares of Newegg Commerce, Inc. (the "Issuer") held by Digital Grid (Hong Kong) Technology Co., Limited ("Digital Grid"), through Hangzhou Lianluo Interactive Technology Co., Ltd.'s ("Hangzhou Lianluo") 100% ownership of Digital Grid and his control of Hangzhou Lianluo and Digital Grid, (ii) warrants to purchase 6,250 common shares at an exercise price of $352.00 per share held by Hangzhou Lianluo through his control of Hangzhou Lianluo, (iii) 2,946 common shares held by Hyperfinite Galaxy Holding Limited, which is 100% owned by Mr. Zhitao He, and (iv) vested stock options held by Mr. Zhitao He that are exercisable for 684,869 common shares at an exercise price of $10.95 per share. Hangzhou Lianluo is controlled by Mr. Zhitao He.
- F2. The stock options were granted pursuant to the Newegg 2005 Incentive Award Plan and are fully vested and exercisable. The options were granted on June 15, 2020 and will expire on June 15, 2030.
- F3. Each warrant is exercisable for common shares at any time for an exercise price of $352.00 per share with no expiration date. The warrants were granted on April 28, 2016.
Key Figures
Indirect common shares via Digital Grid: 11,141,079 shares
Vested stock options: 684,869 shares at $10.95
Warrants held via Hangzhou Lianluo: 6,250 shares at $352.00
+4 more
7 metrics
Indirect common shares via Digital Grid
11,141,079 shares
Beneficially owned common shares held by Digital Grid (Hong Kong) Technology Co., Limited
Vested stock options
684,869 shares at $10.95
Options exercisable for common shares at $10.95 per share, expiring June 15, 2030
Warrants held via Hangzhou Lianluo
6,250 shares at $352.00
Warrants exercisable for common shares at $352.00 per share, no expiration date
Common shares via Hyperfinite Galaxy
2,946 shares
Common shares held by Hyperfinite Galaxy Holding Limited, 100% owned by He Zhitao
Stock options grant date
June 15, 2020
Grant date of options under Newegg 2005 Incentive Award Plan
Stock options expiry
June 15, 2030
Expiration date of vested stock options exercisable for 684,869 shares
Warrants grant date
April 28, 2016
Grant date of warrants for 6,250 common shares at $352.00 per share
Key Terms
beneficially owns, vested stock options, warrants to purchase, exercise price, +2 more
6 terms
beneficially owns financial
"Mr. Zhitao He beneficially owns (i) 11,141,079 common shares of Newegg Commerce, Inc."
Beneficially owns means a person or entity enjoys the economic benefits and control of a security even if the legal title or registration is held in another name. Think of it like having the keys and profits from a car that is registered to a friend: you use it, benefit from it, and make decisions about it even though the official paperwork lists someone else. For investors, this matters because it reveals who truly controls shares, affects voting power, potential conflicts of interest, and regulatory disclosure obligations.
vested stock options financial
"and (iv) vested stock options held by Mr. Zhitao He that are exercisable for 684,869 common shares"
Vested stock options are the portions of an employee’s stock option grant that they have earned the right to buy at a predetermined price after meeting time or performance conditions. For investors, vested options matter because they can convert into actual shares that dilute existing ownership or signal insiders’ confidence when exercised or sold, much like a voucher that becomes redeemable and can change how many tickets are in circulation.
warrants to purchase financial
"(ii) warrants to purchase 6,250 common shares at an exercise price of $352.00 per share"
exercise price financial
"at an exercise price of $352.00 per share held by Hangzhou Lianluo"
The exercise price is the fixed amount at which you can buy or sell an asset, like a stock, when using an options contract. It matters because it helps determine whether exercising the option will be profitable or not, depending on the current market price. Think of it as the set price you agree on today to buy or sell later.
Incentive Award Plan financial
"The stock options were granted pursuant to the Newegg 2005 Incentive Award Plan and are fully vested"
An incentive award plan is a formal program that rewards employees, executives, or directors with cash, stock, options, or other pay when the company meets set goals or performance targets. Like a sales commission or a loyalty program that pays out when you hit milestones, it’s designed to align staff behavior with company objectives; investors care because it affects a company’s costs, share count (dilution), leadership incentives, and long-term value creation.
fully vested and exercisable financial
"The stock options were granted pursuant to the Newegg 2005 Incentive Award Plan and are fully vested and exercisable."
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What does He Zhitao’s Form 3 filing show about his NEGG ownership?
The filing shows that director He Zhitao beneficially owns a substantial stake in Newegg Commerce, Inc. (NEGG), primarily through controlled entities and equity derivatives, including common shares, vested stock options, and warrants linked to Newegg’s common stock.
What stock options linked to NEGG does He Zhitao hold?
He holds vested stock options exercisable for 684,869 common shares at an exercise price of $10.95 per share. These options were granted under the Newegg 2005 Incentive Award Plan on June 15, 2020 and will expire on June 15, 2030.
How are Hyperfinite Galaxy and other entities involved in He Zhitao’s NEGG holdings?
He beneficially owns 2,946 common shares through Hyperfinite Galaxy Holding Limited, which he owns 100%. He also controls Digital Grid and Hangzhou Lianluo, the entities through which most of his Newegg common shares and warrants are held indirectly.
Are He Zhitao’s Newegg options and warrants currently exercisable?
Yes. The filing notes his stock options for 684,869 shares at $10.95 are fully vested and exercisable. Each warrant for 6,250 shares at $352.00 per share is also exercisable at any time, with no expiration date stated.
AI-generated analysis. How Rhea-AI works. Not financial advice.
