Form 4: HF Direct Investments Pool, LLC Executes Stock Trading Plan, Sells Westrock Coffee Co Shares

HF Direct Investments Pool, LLC sold shares of Westrock Coffee Co under a pre-arranged Rule 10b5-1 stock trading plan to rebalance its holdings after a February 2024 investment in convertible notes.

Summary

• HF Direct Investments Pool, LLC ('HF Direct') sold 3,629 shares of Westrock Coffee Co ('Issuer') common stock on July 31, 2024, at a weighted average price of $10.04.
• On August 1, 2024, HF Direct sold an additional 2 shares at $10.02.
• These transactions were executed under a Rule 10b5-1 stock trading plan adopted on June 7, 2024.
• The plan aims to sell up to 1,620,000 shares of Common Stock over approximately one year to rebalance HF Direct's holdings following its February 2024 investment in the Issuer's convertible notes.
• Following these transactions, HF Direct beneficially owns 12,708,089 shares of Westrock Coffee Co.

Sentiment

Score: 6

Explanation: Neutral sentiment as the transactions are part of a pre-planned strategy and do not necessarily indicate a change in HF Direct's long-term view of Westrock Coffee Co.

Positives

• The Rule 10b5-1 plan provides transparency and avoids concerns about insider trading, as the sales are pre-arranged.

Risks

• Continued sales under the 10b5-1 plan could exert downward pressure on the stock price.

Future Outlook

HF Direct expects to sell up to 1,620,000 shares of Common Stock over an approximate one-year period under the Rule 10b5-1 trading plan.

Industry Context

The use of Rule 10b5-1 plans is a common practice for corporate insiders and large shareholders to diversify their holdings while avoiding accusations of trading on non-public information.

Comparison to Industry Standards

• Rule 10b5-1 plans are widely used by executives and major shareholders in publicly traded companies, including competitors of Westrock Coffee Co, to manage their stock holdings in a compliant manner.
• The size of the planned sale (up to 1,620,000 shares) is relatively small compared to the total outstanding shares and HF Direct's existing holdings (12,708,089 shares).

Stakeholder Impact

• The ongoing sales under the 10b5-1 plan could potentially create selling pressure on the stock, impacting shareholders.

Key Dates