Form 4: Andre Agassi Exercises Warrants in Agassi Sports Entertainment

Andre Agassi, a 10% owner and director of Agassi Sports Entertainment Corp., exercised warrants to acquire 705,417 shares of common stock.

Summary

• Andre K. Agassi, a Director and 10% Owner of Agassi Sports Entertainment Corp. (AASP), reported transactions on February 6, 2026.
• Investments AKA, LLC, an entity managed by Agassi, exercised a warrant to purchase 705,417 shares of AASP common stock at an exercise price of $0.397 per share.
• The exercise was conducted on a cashless basis, resulting in the Issuer withholding 54,186 shares at a price of $5.1683 per share to cover the exercise cost.
• Following these transactions, 651,231 net shares were issued to the reporting person.
• Agassi's indirect beneficial ownership of common stock through Investments AKA, LLC changed from 1,657,540 shares to 1,603,354 shares after the cashless exercise.
• Additionally, Agassi indirectly beneficially owns 637,044 shares through ASI Group, LLC.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive signal, as a significant insider is increasing their equity stake by exercising warrants, indicating confidence in the company's valuation and future prospects, despite a portion of shares being sold for cashless exercise.

Positives

• Exercise of warrants indicates a conversion of potential ownership into actual equity, potentially signaling confidence in the company's future.
• The exercise price of $0.397 per share is significantly lower than the $5.1683 per share value used for the cashless exercise, indicating a substantial in-the-money position for the warrants.

Negatives

• A portion of the acquired shares (54,186) was immediately disposed of to cover the cashless exercise cost, reducing the net increase in beneficial ownership.

Future Outlook

NA

Industry Context

StockSavvy.ai notes that insider transactions, particularly warrant exercises by significant shareholders and directors, are often viewed by the market as a signal of confidence in the company's future prospects. This transaction by Andre Agassi, a prominent figure, could be interpreted positively, especially given the substantial difference between the exercise price and the disposition price.

Comparison to Industry Standards

• Insider warrant exercises are a common mechanism for executives and significant shareholders to convert their equity incentives into common stock.
• The cashless exercise method, where shares are withheld to cover the exercise price, is a standard practice to minimize out-of-pocket cash outlays for the insider.
• The significant spread between the exercise price ($0.397) and the disposition price ($5.1683) suggests the warrants were deeply in-the-money, a favorable outcome for the warrant holder, similar to successful option exercises seen in companies like Microsoft (MSFT) or Apple (AAPL) where executive stock options are exercised at prices far below market value.

Related Party Transactions

• The transactions involve Investments AKA, LLC, which is managed by Agassi Ventures, LLC, which in turn is managed by the Reporting Person, Andre K. Agassi.
• The Andre Agassi Trust, of which the Reporting Person is the Trustee, holds all membership interests of Agassi Ventures, LLC.
• Additional shares are held by ASI Group, LLC, which is managed by AKA Four, LLC, also managed by Agassi Ventures, LLC. Investments AKA, LLC owns 100% of ASI Group, LLC.

Stakeholder Impact

• Shareholders: Increased insider ownership can be seen as a positive signal of management's belief in the company's value. The cashless exercise mechanism is a standard practice and does not dilute existing shareholders beyond the initial warrant grant.

Key Dates

Recommendation

The exercise of warrants by a significant insider and director, Andre Agassi, at a price substantially below the market value used for the cashless exercise, indicates a profitable transaction and potential confidence in Agassi Sports Entertainment Corp.'s future. However, as a Form 4 primarily reports a transaction and does not provide comprehensive financial statements or strategic updates, a 'hold' recommendation is prudent, pending further fundamental analysis of the company's performance and outlook.

Keywords

Agassi Sports Entertainment Corp., AASP, Andre Agassi, Form 4, Warrant Exercise, Insider Trading, Beneficial Ownership, Common Stock, Equity Transaction