Pano Anthos - 21 May 2021 Form 4 Insider Report for Purple Innovation, Inc. (PRPL)

Role: Director
Signature: /s/ Casey K. McGarvey, Attorney-in-Fact
Issuer symbol: PRPL
Transactions as of: 21 May 2021
Net transactions value: -$16.3
Form type: 4
Filing time: 25 May 2021, 20:19:44 UTC
Previous filing: 19 May 2022
Next filing: 15 Jun 2021
SEC: View on sec.gov

Transactions Table

Type	Sym	Class	Transaction	Value $	Shares	Change %	* Price $	Shares After	Date	Ownership	Footnotes
transaction	PRPL	Class A Common Stock	Award	$0	+2,969	+13%	$0.000000	25,387	21 May 2021	Direct
transaction	PRPL	Class A Common Stock	Options Exercise	$16,272	+1,415	+5.6%	$11.50	26,802	25 May 2021	Direct	F1, F2
transaction	PRPL	Class A Common Stock	Disposed to Issuer	$16,289	-528	-2%	$30.85^*	26,274	25 May 2021	Direct	F1, F2

Derivative Securities (e.g., puts, calls, warrants, options, convertible securities)

Type	Sym	Class	Transaction	Value $	Shares	Change %	* Price $	Shares After	Date	Underlying Class	Amount	Exercise Price	Ownership	Footnotes
transaction	PRPL	Private Placement Warrants (right to buy)	Options Exercise	$0	-2,830	-100%	$0.000000^*	0	25 May 2021	Class A Common Stock	1,415		Direct	F1, F2

* An asterisk sign (*) next to the price indicates that the price is likely invalid.

Explanation of Responses:

Id	Content
F1	On May 25, 2021, Mr. Anthos exercised 2,830 warrants (the "Private Placement Warrants") on a cashless basis pursuant to the Warrant Agreement, dated as of July 29, 2015, by and between the Issuer and Continental Stock Transfer & Trust Company (the "Warrant Agreement"), with each Private Placement Warrant exercisable for one-half share of Common Stock per Private Placement Warrant at a price of $11.50 per whole share. The disposition of Common Stock in connection with the cashless exercise was exempted pursuant to Rule 16b-3 of the Securities Exchange Act of 1934, as amended, by resolution of the board of directors of the Issuer prior to the disposition.
F2	The number of shares issuable upon a cashless exercise is determined, in accordance with Section 3.3.1(b) of the Warrant Agreement by dividing (x) the product of the number of shares of Common Stock underlying the Private Placement Warrants multiplied by the difference between $11.50 and the Fair Market Value by (y) the Fair Market Value. For this purpose, the "Fair Market Value" is equal to the average last sale price of the Issuer's Common Stock for the ten (10) trading days ending on the third trading day prior to May 25, 2021. The Issuer has calculated the Fair Market Value to be $30.85.

Content

On May 25, 2021, Mr. Anthos exercised 2,830 warrants (the "Private Placement Warrants") on a cashless basis pursuant to the Warrant Agreement, dated as of July 29, 2015, by and between the Issuer and Continental Stock Transfer & Trust Company (the "Warrant Agreement"), with each Private Placement Warrant exercisable for one-half share of Common Stock per Private Placement Warrant at a price of $11.50 per whole share. The disposition of Common Stock in connection with the cashless exercise was exempted pursuant to Rule 16b-3 of the Securities Exchange Act of 1934, as amended, by resolution of the board of directors of the Issuer prior to the disposition.

The number of shares issuable upon a cashless exercise is determined, in accordance with Section 3.3.1(b) of the Warrant Agreement by dividing (x) the product of the number of shares of Common Stock underlying the Private Placement Warrants multiplied by the difference between $11.50 and the Fair Market Value by (y) the Fair Market Value. For this purpose, the "Fair Market Value" is equal to the average last sale price of the Issuer's Common Stock for the ten (10) trading days ending on the third trading day prior to May 25, 2021. The Issuer has calculated the Fair Market Value to be $30.85.