SELLING STOCKHOLDER
This prospectus relates to the possible resale by a certain stockholder, who we refer to in this prospectus as the “selling stockholder,” of up to 900,000 shares of our common stock, as identified in the table below.
On March 20, 2020, pursuant to a membership interest purchase agreement (the “MIPA”) entered into among SEACOR LB Holdings LLC, an indirect wholly-owned subsidiary of the Company (the “Purchaser”), the Company, Montco Offshore, LLC (the “Seller”) and Lee Orgeron, the principal of the Seller (“Orgeron”), the Purchaser purchased the 28% minority equity interest in Falcon Global Holdings LLC (“Falcon Global Holdings”) held by the Seller (the “Equity Purchase”) in exchange for 900,000 shares of our common stock (the “Consideration Shares”). As a result of the transaction, the Company owns 100% of Falcon Global Holdings. The issuance of the Consideration Shares pursuant to the MIPA was made in reliance upon the exemption from registration provided under Section 4(a)(2) of the Securities Act. In determining that the issuance of the Consideration Shares qualified for an exemption under Section 4(a)(2), the Company relied on the following facts: (i) the Seller was an accredited investor or qualified institutional buyer, (ii) the Company did not use any form of general solicitation or advertising to offer the common stock and (iii) the investment intent of the Seller.
In connection with the MIPA, we entered into a registration rights agreement with the Seller and Orgeron, dated March 20, 2020 (the “Registration Rights Agreement”) and we are registering the Consideration Shares in accordance with our obligations under the Registration Rights Agreement.
The following table sets forth information with respect to the maximum number of shares of our common stock that may be offered from time to time by the selling shareholder under this prospectus. The selling stockholder identified below may currently hold or acquire at any time common stock in addition to those registered hereby. In addition, the selling stockholder identified below may sell, transfer, assign or otherwise dispose of some or all of their common stock pursuant to the safe harbor provided by Rule 144 under the Securities Act or in private placement transactions exempt from or not subject to the registration requirements of the Securities Act. Accordingly, we cannot give an estimate as to the amount of common stock that will be held by the selling stockholder upon termination of this offering. Information concerning the selling stockholder may change from time to time and, if necessary, we will supplement this prospectus accordingly.
To our knowledge, except as set forth herein, the selling stockholder has not, nor has had within the past three years, any position, office or other material relationship with us or any of our predecessors or affiliates, other than their ownership of our common stock. Because the selling stockholder may sell all or a portion of the common stock registered hereby, we cannot currently estimate the number or percentage of common stock that the selling stockholder will hold upon completion of the applicable offering.
The selling stockholder is not a broker-dealer registered under Section 15 of the Exchange Act, or an affiliate of a broker-dealer registered under Section 15 of the Exchange Act.
We have prepared the table and the related notes based on information supplied to us by the selling stockholder on or prior to May 14, 2020. We have not sought to verify such information. Other information about the selling stockholder may change over time.
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| | Shares Beneficially Owned Prior to the Offering | | | Shares That May be Offered Hereby(1) | | | Shares Beneficially Owned After the Offering(2) | |
Selling Stockholder | | Number | | | Percentage(3) | | | Number | | | Number | | | Percentage(3) | |
Montco Offshore, LLC(4) | | | 900,000 | | | | 3.90 | % | | | 900,000 | | | | — | | | | * | |
(1) | Represents the number of shares being registered on behalf of the selling stockholder pursuant to this registration statement, which may be less than the total number of shares beneficially owned by the selling stockholder. |
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