TMC said the decision to waive that restriction reflects its improved cash position after raising funds from strategic investors.

TMC The Metals Company (TMC) shares surged over 30% in midday trade on Wednesday, reaching almost a four-year high, after the company announced that it is waiving a key restriction on its Class B warrants, making it easier for investors to convert them into shares without having to pay cash upfront. 

TMC’s stock was among the top trending tickers on Stocktwits following the news.

In its filing with the Securities and Exchange Commission (SEC), the company said it originally sold nearly 20 million shares in November 2024 as part of a direct offering to raise capital. Along with those shares, investors received about 10 million Class B warrants, which gave them the right to buy additional shares later at $2.00 each. As of June 17, about 8.65 million of those warrants remain unexercised.

With the change announced Wednesday, warrant holders can now use a “cashless exercise” option. That means instead of paying $2.00 per share in cash, investors can choose to receive a smaller number of shares based on a formula, without sending any money to the company. 

This option had previously been limited, depending on whether the shares were registered with the SEC.

TMC said the decision to waive that restriction reflects its improved cash position after raising funds from strategic investors. The company believes this approach could help limit overall dilution by reducing the number of shares it ultimately has to issue through warrant exercises.

TMC’s stock has surged 505% this year and 347% over the past 12 months.

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