8-K: Butterfly Network Warrants Delisted by NYSE

The New York Stock Exchange has announced the delisting and immediate suspension of trading for Butterfly Network's public warrants due to abnormally low selling prices.

Summary

• The New York Stock Exchange (NYSE) notified Butterfly Network, Inc. on January 13, 2026, of its decision to commence proceedings to delist the company's public warrants (ticker symbol BFLY WS).
• Trading in the warrants was immediately suspended due to abnormally low selling price levels, as per Section 802.01D of the NYSE Listed Company Manual.
• Each warrant was issued on February 16, 2021, in connection with the company's business combination with Longview Acquisition Corp.
• Warrants are exercisable for one share of Class A common stock at an exercise price of $11.50 per share.
• The warrants are scheduled to expire on February 12, 2026.
• Trading in Butterfly Network's Class A Common Stock (ticker symbol BFLY) will remain unaffected and will continue on the NYSE.

Sentiment

Score: 3

Explanation: The delisting of warrants due to low selling prices is a negative event for warrant holders. However, the company's Class A Common Stock remains unaffected, and management explicitly stated the delisting is not related to the company's performance, mitigating broader negative sentiment for the core business.

Positives

• The company's Class A Common Stock (BFLY) remains unaffected by the delisting and continues to trade on the NYSE.
• Management stated that the company does not believe the warrant delisting is related to the company's performance.

Negatives

• Public warrants (BFLY WS) have been delisted by the NYSE.
• Trading in the warrants has been immediately suspended.
• The delisting was triggered by abnormally low selling price levels of the warrants.
• Warrants are set to expire soon, on February 12, 2026, with an exercise price of $11.50, which may be significantly higher than current market value given the 'abnormally low selling price levels'.

Risks

• Warrant holders face the risk of their warrants becoming worthless if not exercised before the February 12, 2026 expiration date, especially given the immediate trading suspension and low selling prices.
• Despite management's statement, the delisting of a security, even warrants, could potentially lead to negative market perception or investor sentiment, albeit limited to the warrant class.

Future Outlook

The warrants are set to expire on February 12, 2026. No other forward-looking statements or guidance regarding the company's operational or financial performance were provided in this filing.

Management Comments

• "The Company does not believe the warrant delisting is related to the Company’s performance."

Industry Context

This announcement is specific to Butterfly Network's warrants and does not directly reflect broader industry trends. It highlights a specific issue related to the market valuation and trading activity of a particular security class for the company.

Comparison to Industry Standards

• NA

Stakeholder Impact

• Warrant holders are negatively impacted by the delisting and immediate trading suspension, potentially leading to a loss of investment if warrants are not exercised before expiration.
• Shareholders of Class A Common Stock are not directly impacted by this event, as their shares continue to trade on the NYSE.

Next Steps

• The warrants will expire on February 12, 2026.

Key Dates

Recommendation

The delisting pertains specifically to the company's public warrants, which are nearing their expiration date and were delisted due to abnormally low selling prices. The company's Class A Common Stock remains unaffected and continues trading on the NYSE. This event does not provide new information regarding the company's underlying operational performance or financial health to alter a recommendation for the common stock.

Keywords

Butterfly Network, BFLY, Warrants, Delisting, NYSE, Trading Suspension, SEC Filing, 8-K