James Charles Heckman Jr - Jan 17, 2024 Form 3 Insider Report for Arena Group Holdings, Inc. (AREN)

Role
Members of 10% beneficial owner group
Signature
/s/ James C. Heckman, JAMES C. HECKMAN
Stock symbol
AREN
Transactions as of
Jan 17, 2024
Transactions value $
$0
Form type
3
Date filed
1/30/2024, 10:30 AM

Transactions Table

Type Sym Class Transaction Value $ Shares Change % * Price $ Shares After Date Ownership Footnotes
holding AREN Common Stock, par value $0.01 186K Jan 17, 2024 Direct F1, F4
holding AREN Common Stock, par value $0.01 1.49M Jan 17, 2024 See Footnotes F2, F4
holding AREN Common Stock, par value $0.01 1.11M Jan 17, 2024 See Footnotes F3, F4

Derivative Securities (e.g., puts, calls, warrants, options, convertible securities)

Type Sym Class Transaction Value $ Shares Change % * Price $ Shares After Date Underlying Class Amount Exercise Price Ownership Footnotes
holding AREN Options (right to buy) Jan 17, 2024 Common Stock 102K Direct F1, F4, F5, F6
holding AREN Options (right to buy) Jan 17, 2024 Common Stock 660K Direct F1, F4, F6
holding AREN Series H Preferred Stock Jan 17, 2024 Common Stock 304K See Footnotes F2, F4, F7, F8
* An asterisk sign (*) next to the price indicates that the price is likely invalid.

Explanation of Responses:

Id Content
F1 The reported securities are beneficially owned by James C. Heckman.
F2 The reported securities are directly owned by the Warlock Partners, LLC ("Warlock"), and may be deemed beneficially owned by The Roundtable LLC, Series 1111 ("Roundtable LLC") as manager of Warlock and by Brock Pierce as the manager of Roundtable LLC. Each of Roundtable LLC and Mr. Pierce disclaims beneficial ownership of the reported securities directly owned by Warlock, except to the extent of its or his pecuniary interest therein.
F3 The reported securities are directly owned by certain trusts and private funds (the "Strome Investors") managed, directly or indirectly, by Mark E. Strome. Mr. Strome disclaims beneficial ownership of the reported securities directly owned by the Strome Investors, except to the extent of his pecuniary interest therein.
F4 Each of the Reporting Persons specifically disclaims beneficial ownership of the securities reported herein as beneficially owned by the other Reporting Persons. This report shall not be deemed an admission that any Reporting Person is a beneficial owner of any other Reporting Person's securities for purposes of Section 16 of the Exchange Act or for any other purpose.
F5 The reported option granted pursuant to the Issuer's 2016 Stock Incentive Plan (the "2016 Option") vested monthly over the three years following the initial grant date. On September 14, 2018, the Issuer's Board of Directors (the "Board') approved an amendment to the 2016 Option so that it remained exercisable for the full the term of the option.
F6 The reported option granted pursuant to the Issuer's 2019 Stock Incentive Plan (the "2019 Option") vested one-third on the first anniversary of the grant date, and then monthly over the next two years, subject to certain target stock price and daily liquidity conditions. On April 10, 2019, the Board approved an amendment to the 2019 Option so that it remained exercisable for the full term, and changed the vesting schedule to provide for immediate vesting of a portion of the option, with the remainder subject to performance-based vesting tied to certain target stock price and daily liquidity conditions.
F7 Subject to the blocker (described below), the shares of Series H Preferred Stock (the "Preferred Stock") are convertible into the common stock, par value $0.01, of the Issuer (the "Common Stock") at any time, and have no expiration date, but are subject to mandatory conversion on the fifth anniversary of the original issuance date. The Preferred Stock are subject to a blocker that prohibits the Issuer from effecting a conversion of the Preferred Stock into Common Stock if giving effect to the conversion would cause the holder to beneficially own
F8 (together with its affiliates or any "group" members) in excess of 4.99% of the Common Stock (or, upon notice by the holder, in excess of 9.99% of the Common Stock). As the group owns more than 10% of the Common Stock, the members of the group are effectively barred from converting their Preferred Stock into additional shares of Common Stock. Absent this blocker, the 2,200 shares of Preferred Stock held by Warlock would be convertible into 303,600 shares of the Common Stock at its election.

Remarks:

Members of 10% beneficial owner group