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Evernorth Holdings (XRPN) filed a prospectus with the U.S. Securities and Exchange Commission (SEC) registering 73,688,162 Class A shares for potential resale by existing shareholders, according to U.Today. The filing coincides with a sharp decline in the company’s stock price, which dropped 23.54% on Nov. 10 to close at $7.96, down from $10.41 in the previous trading session.
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As of 06:48 UTC, XRP traded at $1.04, -1.4% over 24 hours, with $1.6 billion in 24-hour volume.
Stock Price Decline
XRPN began trading on the Nasdaq on Oct. 12. Since its debut, the share price has fallen significantly. The stock closed at $15.26 on Oct. 28, meaning the current price represents a decline of approximately 48% from that level. The drop is steeper when measured against the high price reached on the debut day of $19.39, from which the stock is now down by around 59%.
Trading volume increased substantially on Nov. 10. Approximately 1.39 million shares were traded that day, a significant jump from the roughly 369,000 shares traded on Nov. 9.
Shareholder Registrations
The prospectus identifies several major shareholders in the XRP ecosystem who have registered shares for potential sale. Arrington XRP Capital Fund, a sponsor of the merger between Evernorth and Armada Acquisition Corp. II, is the largest shareholder with about 33.82 million shares registered for possible resale. Ripple Labs is the second-largest shareholder, with approximately 18.14 million shares registered.
Entities linked to SBI Holdings, a Japanese financial institution, have 11.79 million shares registered. The Larsen Lam Children’s Remainder Trust, linked to Ripple co-founder Chris Larsen, has about 7.15 million shares registered for possible sale. Other names mentioned in the filing include Pantera Capital, GSR Markets Switzerland, and Kraken parent firm Payward.
Lock-Up Agreements
The registration of shares for sale does not indicate that these investors have sold their holdings or necessarily plan to sell them. Ripple Labs, the Arrington-sponsored entity, and the Larsen-linked entity are subject to six-month lock-up agreements following the completion of Evernorth’s business combination on Oct. 9. These lock-up agreements are typically set to expire on April 9, 2027, with some exceptions.
Source: U.Today
