Company: QXO-PB
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001628280-25-040367
Chunk: 167

Company: QXO, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 167
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1,000 per share, par value $0.001 per share (the “Mandatory Convertible Preferred Stock”). The amount issued included 1.5 million Depositary Shares issued pursuant to the exercise in full of the option granted to the underwriters to purchase additional Depositary Shares. The Company received net proceeds from the offering of $558.1 million, after deducting underwriting discounts, commissions and estimated offering expenses of $16.9 million.

Dividends 

The Mandatory Convertible Preferred Stock will accumulate dividends (which may be paid in cash or, subject to certain limitations, in shares of common stock or in any combination of cash and common stock) at a rate per annum equal to 5.50% on the liquidation preference of $1,000 per share, payable when, as and if declared by the Company’s board of directors (or an authorized committee thereof), on February 15, May 15, August 15 and November 15 of each year, beginning on August 15, 2025 and ending on, and including, May 15, 2028. Given the requirement to pay dividends in any settlement outcome of the Mandatory Convertible Preferred Stock, the Company accrues dividends whether or not they are formally declared by the Company’s board of directors.

Mandatory Conversion

The following table illustrates the conversion rate per share of the Mandatory Convertible Preferred Stock, subject to certain anti-dilution adjustments, based on the applicable market value of the common stock:

Applicable Market Value of Common StockConversion Rate per Share of Mandatory Convertible Preferred StockGreater than $20.2126 (the “Threshold Appreciation Price”)49.4740 shares of common stockEqual to or less than the Threshold Appreciation Price but greater than or equal to the Initial PriceBetween 49.4740 and 60.6060 shares of common stock, determined by dividing $1,000 by the applicable market valueLess than $16.50 (the “Initial Price”)60.6060 shares of common stock

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The following table illustrates the conversion rate per Depositary Share, subject to certain anti-dilution adjustments, based on the applicable market value of the common stock:

Applicable Market Value of Common StockConversion Rate per Depository Share Representing a 1/20th interest in a share of the Mandatory Convertible Preferred Stock Greater than the Threshold Appreciation Price2.4737 shares of common stockEqual to or less than the Threshold Appreciation Price but greater than or equal to the Initial Price