Robinhood says SEC reviewing investor share sales

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The Securities and Exchange Commission has launched a review of a share sale by a group of Robinhood investors.

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Robinhood announced Wednesday that a Resale S-1 has been filed on behalf of a group of its shareholders that received Class A common stock upon the automatic conversion of Tranche 1 convertible notes related to the commission-free trading platform's IPO. 

"The SEC staff informed Robinhood on August 13, 2021 that they are reviewing the Resale S-1," the company said. "Once the SEC staff completes its review, Robinhood intends to file an acceleration request asking the SEC to declare the Resale S-1 effective two business days later. We expect to make a public announcement when we file that request."

No sales can be made off the Resale S-1 until the SEC completes their review and declares it effective. 

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Robinhood's stock price took a hit in early August after the company revealed a group of its existing shareholders were planning to sell up to 97.9 million shares. Robinhood noted it would not receive any of the proceeds from the sale.

TickerSecurityLastChangeChange %
HOODROBINHOOD MARKETS, INC.44.39+0.07+0.16%

An SEC spokesperson did not immediately return FOX Business' request for comment. 

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