Advance Magazine Publishers Inc. - Nov 21, 2024 Form 4 Insider Report for Reddit, Inc. (RDDT)

Signature
Advance Magazine Publishers Inc. /s/ Oren Klein, Chief Financial Officer
Stock symbol
RDDT
Transactions as of
Nov 21, 2024
Transactions value $
$0
Form type
4
Date filed
11/22/2024, 05:54 PM
Previous filing
Mar 27, 2024

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 RDDT Call option (obligation to sell) Sale -10M -50% 10M Nov 21, 2024 Class A Common Stock 10M $306.11 Direct F1, F2, F3, F4
transaction RDDT Put option (right to sell) Purchase +10M 10M Nov 21, 2024 Class A Common Stock 10M $121.02 Direct F1, F2, F3, F4
* An asterisk sign (*) next to the price indicates that the price is likely invalid.

Explanation of Responses:

Id Content
F1 On 11/21/2024, Advance Magazine Publishers Inc. ("AMPI") established a credit facility backed by costless equity collar transactions (the "Transactions") and an aggregate of 10,000,000 shares of Class B common stock (the "Class B Common Stock") of Reddit, Inc. (the "Issuer"). Pursuant to the Transactions, AMPI wrote European call options and purchased European put options over an aggregate of 10,000,000 shares of Class A common stock (the "Class A Common Stock") of the Issuer. The Transactions will be settled in cash unless AMPI elects physical settlement, in which case it expects to convert Class B Common Stock for Class A Common Stock sufficient to satisfy its obligations under the Transactions.
F2 The Transactions expire in 25 equal increments in respect of 400,000 shares each over a series of expiration dates from November 5, 2029 to December 11, 2029, inclusive.
F3 On the relevant expiration date, the call option will automatically be exercised (and the put option will expire unexercised) if the volume weighted average price of the Common Stock on the relevant expiration date (the "Reference Price") is greater than or equal to the call option strike price; the put option will automatically be exercised (and the call option will expire unexercised) if the Reference Price is less than or equal to the put option strike price; and the call option and the put option will each expire unexercised if the Reference Price is greater than the put option strike price but less than the call option strike price; provided that the applicable option buyer may elect to exercise the applicable options on the relevant expiration date regardless of whether or not the applicable options are in-the-money.
F4 The Transactions are a "zero-cost collar," in which no premium was exchanged for either the call option or the put option.

Remarks:

Advance Publications, Inc., a New York corporation, may be deemed to beneficially own the securities held of record by AMPI due to its control of AMPI. AMPI has not, and is not, selling any shares in the Issuer as part of entering into the Transactions or otherwise, and intends to remain a long-term stockholder of the Issuer.