(Reuters)-Online securities Robinhood market Inc (NASDAQ :) said Tuesday that it is seeking the end of resale of common stock by certain investors, including venture capital firm Andreessen Horowitz and its affiliates at Ribit.
Shares in the Menlo Park-based company rose 2.9% in expansion trading to $ 23.39.
Robin Hood said it was under a contractual obligation to have these early shareholders withdraw some of their shares, but that the obligation has expired and is now seeking termination.
Robin Hood said in a regulatory filing in August that it had registered for the sale of approximately 98 million shares by early shareholders, including ICONIQ Capital and Index Ventures, and would not receive any proceeds.
This has offended some retail investors who moaned on online forums such as Reddit’s WallStreetBets.
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Robin Hood File Ends Reuters Sale of Shares from Sponsors
https://www.investing.com/news/stock-market-news/robinhood-files-to-terminate-share-sale-from-backers-2703417 Robin Hood File Ends Reuters Sale of Shares from Sponsors