Company: PGYWW
Filing Date: 2025-12-05
Form Type: S-3ASR
Source: 0000950103-25-015781
Chunk: 26

Company: Pagaya Technologies Ltd.
Filing Date: 2025-12-05
Form: S-3ASR
Chunk 26
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, holders may elect to exercise their public warrants
on a cashless basis.

Redemption Procedures and Cashless Exercise

If Pagaya calls the public
warrants for redemption as described above under “—Redemption of Public Warrants for Cash,” Pagaya’s management
will have the option to require any holder that wishes to exercise his, her or its warrant to do so on a “cashless basis.”
In determining whether to require all holders to exercise their public warrants on a “cashless basis,” Pagaya’s management
will consider, among other factors, Pagaya’s cash position, the number of public warrants that are outstanding and the dilutive
effect on Pagaya shareholders of issuing the maximum number of Class A Ordinary Shares issuable upon the exercise of the public warrants.
If Pagaya’s management takes advantage of this option, all holders of public warrants would pay the exercise price by surrendering
their public warrants for that number of Class A Ordinary Shares equal to the quotient obtained by dividing (x) the product of the number
of Class A Ordinary Shares underlying the public warrants, multiplied by the excess of the “fair market value” of Class A
Ordinary Shares (defined below) over the exercise price of the public warrants by (y) the fair market value. The “fair market value”
will mean the average closing price of the Class A Ordinary Shares for the 10 trading days ending on the third trading day prior to the
date on which the notice of redemption is sent to the holders of public warrants. If Pagaya’s management takes advantage of this
option, the notice of redemption will contain the information necessary to calculate the number of Class A Ordinary Shares to be received
upon exercise of the public warrants, including the “fair market value” in such case. Requiring a cashless exercise in this
manner will reduce the number of shares to be issued and thereby lessen the dilutive effect of a warrant redemption. If Pagaya calls its
public warrants for redemption and Pagaya’s management does not take advantage of this option, the holders of the private placement
warrants and their permitted transferees would still be entitled to exercise their private placement warrants for cash or on a cashless
basis using the same formula described above.

A holder of a public warrant
may notify Pagaya in writing in the event it elects to be subject to a requirement that such holder will not have the right to exercise
such warrant, to the extent that after giving effect to such exercise, such person (together