Company: GROVW
Filing Date: 2025-03-19
Form Type: 10-K
Source: 0001628280-25-013839
Chunk: 163

Company: Grove Collaborative Holdings, Inc.
Filing Date: 2025-03-19
Form: 10-K
Item: Item 8
Chunk 163
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 to receive one share of the Company’s Class A Common Stock at an effective exercise price of $57.50. The Private Placement Warrants and Public Warrants for shares of the Company’s Class A Common Stock meet liability classification requirements since the warrants may be required to be settled in cash under a tender offer. In addition, Private Placement Warrants are potentially subject to a different settlement amount as a result of being held by the Sponsor which precludes the Private Placement Warrants from being considered indexed to the entity's own stock, and therefore classified as liabilities and included in derivative liabilities on the Company's consolidated balance sheets as of December 31, 2024 and 2023.

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Table of ContentsGrove Collaborative Holdings, Inc.Notes to Consolidated Financial Statements (continued)

As of December 31, 2024, the following warrants were outstanding on an as converted basis:Warrant TypeSharesExercise PricePublic Warrants1,460,146 $57.50 Private Placement Warrants1,340,000 $57.50 Public WarrantsThe Public Warrants became exercisable into shares of the Company’s Class A Common Stock commencing on July 16, 2022 and expire on July 16, 2027, or earlier upon redemption or liquidation. At the Closing Date, the Company assumed 8,050,000 public warrants. On June 16, 2023, the Company agreed to cancel 749,291 Public Warrants from certain holders. Five whole warrants must be bundled together in order to receive one share of the Company’s Class A Common Stock at an effective exercise price of $57.50 per share, subject to certain adjustments. The Company may redeem, with 30 days written notice, each whole outstanding Public Warrant for cash at a price of $0.01 per warrant if the Reference Value equals or exceeds $90.00 per share, subject to certain adjustments. The warrant holders have the right to exercise their outstanding warrants prior to the scheduled redemption date during the redemption period at an effective price of $57.50 per share, subject to certain adjustments. If the Company calls the Public Warrants for redemption, the Company will have the option to require all holders that wish to exercise the Public Warrants to do so on a “cashless basis”, as described in the warrant agreement. For purposes of the redemption, “Reference Value” shall mean the last reported sales price of the Company’s Class A Common Stock for any 20 trading days within the 30