StablecoinX swaps $6.88M defaulted SPAC notes for warrants
StablecoinX restructured $6.879 million of defaulted former-SPAC notes by paying about $344,000 in cash and issuing two warrant tranches that could convert into roughly 7.62 million Class A shares.
Nasdaq-listed StablecoinX restructured $6.879 million of defaulted notes tied to its former SPAC, paying about $343,966 in cash and issuing two warrant tranches, the company disclosed in an Aug. 24 regulatory filing.
Under the agreement, 5% of the note balance is payable in cash and 95% is allocated equally to Tranche A and Tranche B warrants. Tranche A was issued at $1 and Tranche B at $0.75, creating $6.535 million of warrant consideration and the $343,966 cash component. That yields about 3.27 million Tranche A warrants and 4.36 million Tranche B warrants, or roughly 7.62 million potential Class A shares.
The warrants become exercisable Sept. 20. Tranche A carries an $11.50 exercise price and expires June 25, 2031; Tranche B has a $15 exercise price and expires Aug. 21, 2034. The warrants are non-redeemable and include cashless-exercise rights while held by the former sponsors or permitted transferees; those protections may not apply after other transfers.
The obligations arose from StablecoinX’s business combination with TLGY Acquisition Corporation. The notes were held by TLGY Sponsors LLC, CPC Sponsor Opportunities I LP and CPC Sponsor Opportunities I (Parallel) LP. The company’s June-quarter filing said the obligations became repayable when the business combination closed on June 25 and were in default; holders waived that payment default under an Aug. 5 term sheet before definitive agreements were signed on Aug. 21.
StablecoinX reported $18.856 million of cash at June 30. The roughly $344,000 cash payment equals about 1.8% of that balance, while the full $6.879 million note amount equals about 36.5% of the June 30 cash balance. The company also holds Ethena’s ENA token as a treasury asset; those holdings are restricted and subject to market price swings and are not a substitute for unrestricted cash.
On an instrument-count basis, the new warrants would equal about 31.7% of StablecoinX’s 24.029 million Class A shares outstanding as of Aug. 12. Adding 11.5 million existing public warrants and 78,635 restricted stock units produces a pre-deal potential-share baseline of about 35.61 million, making the new warrants roughly 21.4% of that broader figure. The warrants will dilute current holders only if exercised; actual dilution will depend on future share price and exercise terms.
The filing states that full discharge of the restructured obligations is conditional on delivery of the cash component and issuance of the warrants.
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