Skillz Inc. (SKLZ) Announces Warrant Redemption for Cash Exercise

Skillz Inc. (NYSE: SKLZ), which completed their combination with Flying Eagle Acquisition Corp. in mid-December 2020, announced this morning that they will be redeeming their outstanding public SPAC warrants for cash exercise.  As a result, the price of the SKLZ warrants has dropped closer to intrinsic value, having previously traded at ~$6.20. As of writing this, the warrants are now ~$3.84.

As a reminder, Flying Eagle included a 1/4 warrant in their public IPO unit, but only full warrants are exercisable.  And those warrants can be called by the company if the share price is trading at or above $18.00 for any 20 out of 30 trading days.  Skillz reached that threshold on Tuesday, July 13th.

The Public Warrants may be exercised by the holders until 5:00 p.m. New York City time on August 16, 2021, at the exercise price of $11.50 per share. Any Public Warrants that remain unexercised at 5:00 p.m. New York City time on that date will be void and no longer exercisable.