TISI Form 3: 470,889 Tranche B warrants; 4.99% cap noted
Rhea-AI Filing Summary
Team, Inc. (TISI) director Michael David Stewart filed a Form 3 disclosing initial beneficial ownership. He indirectly holds 75,000 shares of Series B Preferred Stock through InspectionTech Holdings LP.
He also reports derivative interests: Tranche A Warrants for 982,371 shares of Common Stock at $23, and Tranche B Warrants for 470,889 shares at $50, each first exercisable on 09/11/2025 and expiring on 09/11/2035. The warrants include a 4.99% beneficial ownership cap on exercise.
In addition, there is an obligation to purchase 30,000 Delayed Draw Series B Preferred Shares at $1,000 per share, exercisable from 09/11/2025 to 09/11/2027. Upon each issuance of 5,000 delayed draw shares, the holder receives 65,491 additional Tranche A and 31,393 additional Tranche B warrants; for issuances on or after 12/10/2025, Additional Tranche A Warrants price at the lesser of $30.00 or 110% of the 30‑day VWAP, while Additional Tranche B Warrants price at $50.00.
Positive
- None.
Negative
- None.
Insider Trade Summary
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| holding | Tranche A Warrants | -- | -- | -- |
| holding | Tranche B Warrants | -- | -- | -- |
| holding | Delayed Draw Preferred Shares (obligation to buy) | -- | -- | -- |
| holding | Series B Preferred Stock | -- | -- | -- |
Footnotes (1)
- InspectionTech Holdings LP (the "Stellex SPV") is an affiliate of Stellex Capital Management LLC, of which the Reporting Person is a managing member. As a result of this relationship, the Reporting Person may be deemed to have investment and voting control over the securities held of record by the Stellex SPV. The warrants contain provisions preventing exercise if such exercise would result in the Stellex SPV beneficially owning greater than 4.99% of the Common Stock when aggregated with all other shares of Common Stock beneficially owned. Upon each issuance of 5,000 Delayed Draw Preferred Shares, the Issuer will issue to Stellex SPV an additional 65,491 Tranche A Warrants (the "Additional Tranche A Warrants") and an additional 31,393 Tranche B Warrants (the "Additional Tranche B Warrants") on substantially similar terms as the warrants reported herein, except that upon each issuance of Delayed Draw Preferred Shares on or after December 10, 2025, any Additional Tranche A Warrants issued shall have an initial exercise price the lesser of (x) $30.00 and (y) 110% of the 30-day volume weighted average price of the Common Stock, subject to adjustments. Any Additional Tranche B Warrants issued shall have an initial exercise price of $50.00 per share, subject to adjustments.
