CompoSecure Completes Spin-Off of Resolute Holdings Inc.
CompoSecure Completes Spin-Off of Resolute Holdings Inc.
SOMERSET, N.J. and NEW YORK - CompoSecure, Inc. (Nasdaq: CMPO), a prominent name in the realm of metal payment cards and security solutions, has officially finalized the separation of its subsidiary, Resolute Holdings Management, Inc. This strategic move transforms Resolute Holdings into an independent, publicly traded entity, signaling a new era for both companies.
Details of the Spin-Off
The structural reorganization took place on February 28, 2025, at 12:01 a.m. Eastern Standard Time. Each shareholder of CompoSecure who held shares as of the record date, February 20, 2025, will receive one share of Resolute Holdings for every twelve shares of CompoSecure stock they own. This distribution has been designed to streamline operations and enhance shareholder value.
Tax Implications for Shareholders
This share distribution is expected to result in a taxable gain for CompoSecure, indicating that all current shareholders will treat this as a taxable dividend for U.S. federal and state tax purposes. Such considerations underscore the importance of understanding the financial landscape during corporate restructurings.
Trading Details
With the successful completion of the spin-off, Resolute Holdings will start trading on Nasdaq under the ticker symbol RHLD. Meanwhile, CompoSecure will continue its operations under its existing ticker, CMPO, fostering transparency as the companies embark on their independent journeys.
Advisory Teams
Goldman Sachs & Co. LLC has stepped in as the financial advisor for CompoSecure during this pivotal transition, while legal guidance has been provided by Paul, Weiss, Rifkind, Wharton & Garrison LLP. Their expertise has been crucial in ensuring a smooth spin-off process.
Insights into CompoSecure
Founded in 2000, CompoSecure (Nasdaq: CMPO) has established itself as a vital technology partner for various market leaders and fintech ventures. Their mission revolves around providing secure, reliable, and elegant payment card solutions that deliver peace of mind and exceptional user experiences worldwide. This focus on innovation allows CompoSecure to maintain a competitive edge in dynamic market conditions.
Expansion of Offerings and Trust
The company's advanced payment technologies, including metal cards integrated with Arculus security features, enable users to safely access and manage their financial and digital assets. The role of trust in transactions—both physical and digital—cannot be overstated, and CompoSecure remains dedicated to enhancing that trust through their offerings.
Understanding Resolute Holdings
Resolute Holdings, now a standalone entity, operates under the leadership of David Cote and Tom Knott. This firm specializes in alternative asset management and is poised to deliver operational management services. These services will encompass capital allocation strategies, operational practices, and mergers and acquisitions for CompoSecure and other future endeavors.
A Unique Approach to Value Creation
The establishment of the Resolute Operating System enables a distinctive strategy for long-term value creation, enhancing business performance significantly. Stakeholders are encouraged to explore the evolving nature of Resolute Holdings, as it aims to contribute both to its own success and that of its partners.
Corporate Contacts
For inquiries regarding Resolute Holdings, contact (212) 256-8405 or reach out via email at info@resoluteholdings.com. Further, for communications with CompoSecure, Anthony Piniella, Head of Communications, can be contacted at (917) 208-7724 or via email at apiniella@composecure.com.
Frequently Asked Questions
What is the significance of the spin-off for CompoSecure's shareholders?
The spin-off allows CompoSecure's shareholders to gain shares in Resolute Holdings, potentially increasing overall shareholder value while streamlining business operations.
What does the ticker symbol RHLD represent?
RHLD is the new ticker symbol under which Resolute Holdings will trade on the Nasdaq following the completion of its spin-off from CompoSecure.
How does the spin-off affect the trading of CompoSecure shares?
CompoSecure will continue trading under the ticker CMPO, with no change to the trading status of its shares as a result of the spin-off.
Who were the advisors for CompoSecure during the spin-off?
Goldman Sachs & Co. LLC acted as the financial advisor, while Paul, Weiss, Rifkind, Wharton & Garrison LLP provided legal counsel.
What opportunities does Resolute Holdings aim to provide?
Resolute Holdings is focused on long-term value creation through operational management and unique asset strategies to benefit its managed enterprises and investors alike.
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