Form 4: NeueHealth Director Makhzoumi Receives Warrants Following Credit Agreement Amendment

Director Mohamad Makhzoumi reports the acquisition of warrants to purchase NeueHealth common stock, issued pursuant to a warrantholders agreement and amendments to a credit agreement.

Summary

• Mohamad Makhzoumi, a director of NeueHealth, reported the acquisition of warrants on April 8, 2024.
• The warrants are exercisable for NeueHealth common stock at a price of $0.01 per warrant.
• A total of 742,374 warrants were acquired indirectly through various NEA-related entities.
• The warrants were issued pursuant to a Warrantholders Agreement and amendments to a Credit Agreement.
• The warrants will be issued on the first business day following the conclusion of the 10 calendar day period after the distribution of the letter required to be mailed by the Issuer to its shareholders pursuant to Section 312.05 of the NYSE Listed Company Manual.
• The warrants will be exercisable at any time after issuance and prior to the close of business on the fifth anniversary of the Closing Date.

Sentiment

Score: 6

Explanation: The sentiment is neutral as the document primarily reports a transaction related to existing agreements. There are no explicit positive or negative implications for the company's performance.

Future Outlook

The warrants are exercisable at any time after issuance and prior to the close of business on the fifth anniversary of the Closing Date.

Industry Context

This filing reflects standard practice for equity compensation and financial agreements within publicly traded companies, particularly in the context of credit agreements and amendments.

Comparison to Industry Standards

• Warrant issuances are a common mechanism for companies to incentivize investors and lenders, particularly in conjunction with credit agreements.
• The exercise price of $0.01 is typical for warrants issued in connection with debt financing.
• Similar warrant structures can be observed in companies like Opendoor Technologies Inc. and Lemonade, Inc., which have also used warrants as part of their capital structure.

Stakeholder Impact

• The warrant issuance could potentially dilute existing shareholders if the warrants are exercised.
• The issuance of warrants as part of the credit agreement amendments may strengthen the company's financial position by securing financing.

Next Steps

• The warrants will be issued on the first business day following the conclusion of the 10 calendar day period after the distribution of the letter required to be mailed by the Issuer to its shareholders pursuant to Section 312.05 of the NYSE Listed Company Manual.

Key Dates