Mudrick funds buy Vroom shares and warrants
Mudrick Capital–affiliated investment funds increased their indirect stake in Vroom, Inc. through a privately negotiated stock and warrant purchase.
Rhea-AI Filing Summary
Mudrick Capital–affiliated investment funds increased their indirect stake in Vroom, Inc. through a privately negotiated stock and warrant purchase. The reporting Mudrick entities bought 15,595 shares of Vroom common stock at $7.22 per share and 15,595 immediately exercisable warrants at $0.01 per warrant, each warrant convertible into one share of common stock at an exercise price of $60.95 and expiring on January 14, 2030. Following the stock purchase, the Mudrick-managed vehicles collectively report indirect holdings of 3,982,846 Vroom common shares, while disclaiming beneficial ownership beyond their pecuniary interests.
Positive
- None.
Negative
- None.
Insider Trade Summary
Net Buyer: 31,190 shares
Net Buy
2 txns
Insider
Mudrick Capital Management, L.P., Mudrick Capital Management LLC, Mudrick Jason, Mudrick Distressed Opportunity Drawdown Fund III, L.P., Mudrick Distressed Opportunity Drawdown Fund III GP, LLC, Mudrick Distressed Opportunity SIF Master Fund, L.P., Pietroforte Matthew, Mudrick Distressed Opportunity SIF GP, LLC, Mudrick Distressed Opportunity Drawdown Fund II SC, L.P., Mudrick Distressed Opportunity Drawdown Fund II GP, LLC
Role
Director, 10% Owner | Director, 10% Owner | Director, 10% Owner | Director, 10% Owner | Director, 10% Owner | Director, 10% Owner | Director, 10% Owner | Director, 10% Owner | Director, 10% Owner | Director, 10% Owner
Bought
31,190 shs ($113K)
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Purchase | Warrants | 15,595 | $0.01 | $155.95 |
| Purchase | Common Stock | 15,595 | $7.22 | $113K |
Holdings After Transaction:
Warrants — 15,595 contracts (Indirect, See Notes);
Common Stock — 3,982,846 shares (Indirect, See Notes)
Footnotes (8)
- F1. This statement is being filed by the following Reporting Persons: Mudrick Capital Management, L.P. ("MCM"); Mudrick Capital Management, LLC ("MCM GP"); Jason Mudrick; Mudrick Distressed Opportunity Fund Global, L.P. ("Mudrick Opp Global"); Mudrick GP, LLC ("Mudrick GP"); Mudrick Distressed Opportunity Drawdown Fund II, L.P. ("Drawdown II"); Mudrick Distressed Opportunity Drawdown Fund II SC, L.P. ("Drawdown II SC"); Mudrick Distressed Opportunity Drawdown Fund II GP, LLC ("Drawdown II GP"); Mudrick Distressed Opportunity Drawdown Fund III, L.P. ("Drawdown III"); Mudrick Distressed Opportunity Drawdown Fund III GP, LLC ("Drawdown III GP"); Mudrick Distressed Opportunity SIF Master Fund, L.P. ("SIF"); Mudrick Distressed Opportunity SIF GP, LLC ("SIF GP"); Mudrick Distressed Opportunity 2020 Dislocation Fund, L.P. ("DISL"); Mudrick Distressed Opportunity 2020 Dislocation Fund GP, LLC ("DISL GP"); and Matthew Pietroforte.
- F2. Represents shares of Common Stock purchased in a privately negotiated transaction ("Stock Purchase") as follows: 387 by Drawdown II SC; 1,148 by DISL; 4,151 by Drawdown II; 256 by Drawdown III; and 9,653 by certain accounts managed by MCM.
- F3. Represents shares of Common Stock directly held following the reported transaction as follows: 1,058,822 by Mudrick Opp Global; 729,536 by Drawdown II; 68,082 by Drawdown II SC; 45,002 by Drawdown III; 201,805 by DISL; 182,936 by SIF; and 1,696,663 by certain accounts managed by MCM.
- F4. Represents immediately exercisable warrants to purchase an equal number of shares of Common Stock (subject to adjustments in accordance with the terms of such warrants) purchased in connection with the Stock Purchase as follows: 387 by Drawdown II SC; 1,148 by DISL; 4,151 by Drawdown II; 256 by Drawdown III; and 9,653 by certain accounts managed by MCM.
- F5. Represents shares of Common Stock into which the Warrants may be converted in each case, subject to adjustment and other terms of the warrants as follows: 387 by Drawdown II SC; 1,148 by DISL; 4,151 by Drawdown II; 256 by Drawdown III; and 9,653 by certain accounts managed by MCM.
- F6. Mudrick GP is the general partner of Global LP and may be deemed to beneficially own the number of securities of the Issuer directly held by Global LP. Drawdown II GP is the general partner of Drawdown II and Drawdown II SC and may be deemed to beneficially own the securities of the Issuer directly held by Drawdown II and Drawdown II SC. Drawdown III GP is the general partner of Drawdown III and may be deemed to beneficially own the securities of the Issuer directly held by Drawdown III. DISL GP is the general partner of DISL and may be deemed to beneficially own the number of securities of the Issuer held by DISL. SIF GP is the general partner of SIF and may be deemed to beneficially own the securities of the Issuer directly held by SIF
- F7. MCM is the investment manager to Drawdown II, Global LP, Drawdown II SC, Drawdown III, DISL, SIF and certain accounts managed by MCM. Mr. Mudrick is the sole member of Mudrick GP, Drawdown II GP, Drawdown III GP, MCM GP, DISL GP and SIF GP. By virtue of these relationships, each of MCM, MCM GP and Mr. Mudrick may be deemed to beneficially own the securities held directly by Global LP, Drawdown II, Drawdown II SC, Drawdown III, DISL, SIF and certain accounts managed by MCM.
- F8. The Reporting Persons disclaim any beneficial ownership of the reported securities other than to the extent of any pecuniary interest they may have therein, directly or indirectly. Pursuant to Rule 16a-1(a)(4) under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), this filing shall not be deemed an admission that the Reporting Persons are, for purposes of Section 16 of the Exchange Act or otherwise, the beneficial owners of any equity securities of the Issuer in excess of their respective pecuniary interests. The Reporting Persons are jointly filing this Form 4 pursuant to Rule 16a-3(j) under the Exchange Act. Exhibit List: Joint Filer Information. This filing shall not be deemed an admission that any of the Reporting Persons is subject to Section 16 of the Exchange Act.
Key Figures
Common shares purchased: 15,595 shares
Purchase price per share: $7.22 per share
Warrants purchased: 15,595 warrants
+5 more
8 metrics
Common shares purchased
15,595 shares
Privately negotiated Stock Purchase
Purchase price per share
$7.22 per share
Common stock acquisition
Warrants purchased
15,595 warrants
Derivative purchase tied to Stock Purchase
Warrant purchase price
$0.01 per warrant
Cost to acquire each warrant
Warrant exercise price
$60.95 per share
Conversion price into Vroom common stock
Warrant expiration
January 14, 2030
Warrants on Vroom common stock
Common shares held after
3,982,846 shares
Indirect holdings across Mudrick-managed vehicles
Underlying warrant shares
15,595 shares
Common stock into which warrants are exercisable
Key Terms
privately negotiated transaction, immediately exercisable warrants, beneficial ownership, pecuniary interest, +2 more
6 terms
privately negotiated transaction financial
"Represents shares of Common Stock purchased in a privately negotiated transaction ("Stock Purchase")"
A privately negotiated transaction is a deal whose terms are worked out directly between a buyer and a seller rather than through a public market or open auction. Think of it like selling a car to a neighbor instead of putting it on eBay: the price, timing and conditions are agreed one-on-one, so investors may see less public information, different pricing compared with market trades, and potential impacts on liquidity and valuation.
immediately exercisable warrants financial
"Represents immediately exercisable warrants to purchase an equal number of shares of Common Stock"
beneficial ownership financial
"The Reporting Persons disclaim any beneficial ownership of the reported securities other than to the extent of any 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
"other than to the extent of any pecuniary interest they may have therein, directly or indirectly"
Rule 16a-1(a)(4) regulatory
"Pursuant to Rule 16a-1(a)(4) under the Securities Exchange Act of 1934"
Section 16 regulatory
"this filing shall not be deemed an admission that the Reporting Persons are, for purposes of Section 16 of the Exchange Act"
Section 16 is a U.S. securities law rule that governs the trading and disclosure obligations of company insiders — typically officers, directors and large shareholders — to promote transparency and deter unfair profit-taking. It requires insiders to publicly report their stock trades and allows companies or the issuer to reclaim quick, short-term profits from certain insider trades, like a scoreboard and a refund policy that help investors see and limit possible insider advantage.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What did Mudrick Capital entities do in this Vroom (VRM) Form 4 filing?
Mudrick Capital–affiliated funds reported buying Vroom securities. They acquired 15,595 common shares and 15,595 related warrants in a privately negotiated Stock Purchase, increasing their indirect exposure to Vroom while filing jointly as multiple related investment entities.
What warrants on Vroom (VRM) stock did the Mudrick funds acquire?
The Mudrick funds bought 15,595 Vroom warrants alongside the common shares. Each warrant cost $0.01, is immediately exercisable at an exercise price of $60.95 per share, and expires on January 14, 2030, covering 15,595 underlying Vroom common shares.
What is the total Vroom (VRM) common stock position reported after these transactions?
After the reported transactions, the Mudrick-affiliated vehicles collectively report holding 3,982,846 Vroom common shares indirectly. These shares are spread across several funds and accounts managed by Mudrick Capital Management, as detailed in the Form 4 footnotes.
Were the Vroom (VRM) securities bought on the open market or privately negotiated?
The Form 4 notes the common shares and warrants were bought in a privately negotiated “Stock Purchase.” Although the transaction code is a purchase, the footnote specifies it was negotiated directly, not via ordinary open-market exchange trades.
AI-generated analysis. How Rhea-AI works. Not financial advice.
