AE Red Holdings (NYSE: RDW) exercises 2M Redwire warrants on a cashless basis
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
Redwire Corp insider entities exercised a large warrant position and received new shares. On June 11, 2026, the reporting person exercised warrants to purchase 2,000,000 shares of Redwire common stock at $11.50 per share on a cashless basis. The company withheld 1,070,565 of the warrant shares to pay the exercise price and issued 929,435 net shares.
After these transactions, the reporting person holds 2,147,984 shares of common stock indirectly. All 2,000,000 warrants referenced in this filing have been exercised, leaving no remaining warrants of this type. Voting and dispositive power over these securities is exercised through AE Red Holdings and the AE Industrial Partners funds, and each related entity and individual disclaims beneficial ownership beyond their pecuniary interest.
Positive
- None.
Negative
- None.
Insights
All reported warrants were exercised cashlessly, increasing equity and removing this derivative overhang.
The filing shows a fund-affiliated holder exercising warrants for 2,000,000 Redwire common shares at $11.50 per share on a cashless basis. Instead of paying cash, 1,070,565 shares were withheld to cover the exercise price, and 929,435 net shares were issued.
This fully eliminates the 2,000,000 warrants referenced, simplifying the capital structure while increasing the holder’s indirect common stock position to 2,147,984 shares. Because this is an in-the-money cashless exercise rather than an open-market trade, the signal is mainly structural, not a clear bullish or bearish view on the stock.
Insider Trade Summary
Net Seller: 1,070,565 shares ($23,000,018)
Net Sell
3 txns
Insider
AE RED HOLDINGS, LLC, GREENE MICHAEL ROBERT, ROWE DAVID H., AE INDUSTRIAL PARTNERS FUND II-B, LP, AE INDUSTRIAL PARTNERS FUND II, LP, AE INDUSTRIAL PARTNERS FUND II-A, LP, AEROEQUITY GP, LLC
Role
null | null | null | null | null | null | null
Sold
1,070,565 shs ($23.00M)
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| X | Warrants | 2,000,000 | $0.00 | -- |
| X | Common Stock, par value $0.0001 per share | 2,000,000 | $11.50 | $23.00M |
| Sale | Common Stock, par value $0.0001 per share | 1,070,565 | $21.484 | $23.00M |
Holdings After Transaction:
Warrants — 0 shares (Indirect, See footnotes);
Common Stock, par value $0.0001 per share — 2,147,984 shares (Indirect, See footnotes)
Footnotes (1)
- On June 11, 2026, the reporting person exercised warrants to purchase 2,000,000 shares of the Issuer's common stock for $11.50 a share. The reporting person paid the exercise price on a cashless basis, resulting in the Issuer withholding 1,070,565 of the warrant shares to pay the exercise price and issuing the reporting person the remaining 929,435 shares. Voting and dispositive power with respect to the securities held by AE Red Holdings, LLC ("AE Red") and the AE Funds (as defined below) is exercised by Michael Greene and David H. Rowe, the managing members of AeroEquity GP, LLC, which is the general partner of AE Industrial Partners Fund II GP, LP ("AE Fund II GP"). AE Fund II GP is the general partner of the AE Funds (as defined below). AE Industrial Partners Fund II-B, LP ("AE Fund II-B"), AE Industrial Partners Fund II, LP ("AE Fund II LP") and AE Industrial Partners Fund II-A, LP ("AE Fund II-A" and together with AE Fund II-B and AE Fund II LP, the "AE Funds") are the controlling equityholders of AE Red. Each of the foregoing entities and individuals disclaims beneficial ownership of the shares reported hereby, except to the extent of their pecuniary interest therein, and this report shall not be deemed an admission that the reporting person is the beneficial owner of the securities for purposes of Section 16 or for any other purpose. The warrants will expire five years after the date of the Issuer's business combination (subject to certain exceptions provided by the governing warrant agreement).
Key Figures
Warrants exercised: 2,000,000 shares
Exercise price: $11.50 per share
Shares withheld: 1,070,565 shares
+2 more
5 metrics
Warrants exercised
2,000,000 shares
Common stock underlying warrants exercised on June 11, 2026
Exercise price
$11.50 per share
Warrants to purchase Redwire common stock
Shares withheld
1,070,565 shares
Withheld by issuer to pay exercise price in cashless transaction
Net shares issued
929,435 shares
Common shares issued to reporting person after cashless exercise
Post-transaction holdings
2,147,984 shares
Indirect common stock ownership after reported transactions
Key Terms
cashless basis, warrants, voting and dispositive power, beneficial ownership, +2 more
6 terms
cashless basis financial
"The reporting person paid the exercise price on a cashless basis, resulting in the Issuer withholding 1,070,565 of the warrant shares"
An agreement executed on a cashless basis lets a holder convert or exercise a security (like options, warrants, or conversion rights) without paying money upfront; instead the holder receives a smaller number of shares equal in value to what the cash would have purchased. Think of trading a coupon for fewer slices of a cake rather than handing over cash for the full slice. For investors, it affects how much ownership and dilution occur and avoids immediate cash outlays.
warrants financial
"On June 11, 2026, the reporting person exercised warrants to purchase 2,000,000 shares of the Issuer's common stock for $11.50 a share"
Warrants are special documents that give you the right to buy a company's stock at a set price before a certain date. They are often used as a way for companies to attract investors or raise money, and their value can increase if the company's stock price goes up.
voting and dispositive power financial
"Voting and dispositive power with respect to the securities held by AE Red Holdings, LLC and the AE Funds is exercised by Michael Greene and David H. Rowe"
beneficial ownership financial
"Each of the foregoing entities and individuals disclaims beneficial ownership of the shares reported hereby, except to the extent of their pecuniary interest"
Beneficial ownership means the person or entity that actually enjoys the benefits of owning shares or other assets — such as receiving dividends, voting rights, or price gains — even if the legal title is held in another name. For investors it matters because knowing who truly controls and profits from a company reveals who can influence decisions, exposes potential conflicts of interest or hidden concentration of power, and affects transparency and risk in the stock.
pecuniary interest financial
"disclaims beneficial ownership of the shares reported hereby, except to the extent of their pecuniary interest therein"
warrant agreement financial
"The warrants will expire five years after the date of the Issuer's business combination (subject to certain exceptions provided by the governing warrant agreement)"
A warrant agreement is the legal document that lays out the rules for stock warrants — special certificates that let their holder buy company shares at a set price within a certain time. It explains how and when warrants can be exercised, transferred, changed, or canceled, and what happens to them if the company raises money or is sold; investors care because these terms affect potential future ownership, dilution of shares, and the real value of the warrants.
FAQ
What did AE Red Holdings report in this Redwire (RDW) Form 4?
AE Red Holdings and affiliated AE Industrial Partners funds reported exercising warrants for 2,000,000 Redwire common shares at $11.50 per share on a cashless basis, with 1,070,565 shares withheld to pay the exercise price and 929,435 net shares issued.
Were the Redwire (RDW) warrants fully exercised in this Form 4?
Yes. The filing states that warrants to purchase 2,000,000 Redwire common shares were exercised at $11.50 per share. After the transaction, the warrant position shown in the derivative table is reduced to zero, indicating these particular warrants have been fully exercised.
Did AE Red Holdings pay cash to exercise Redwire (RDW) warrants?
No. The reporting person exercised the 2,000,000-share Redwire warrant position on a cashless basis. The issuer withheld 1,070,565 of the warrant shares to cover the $11.50 per-share exercise price, issuing 929,435 net common shares instead of taking a cash payment.