Originally Posted by wjcandee

I think (FWIW) that those are good observations.

Amazon had the same kind of 4.9 percent feature with ATSG, subject to notice by Amazon to adjust that number. In the notice of exercise, Amazon bumped the percentage it can own to 19.999%, and ended up acquiring in total 19-something percent. It also agreed with ATSG that if ATSG does any share-repurchases (with limited exceptions), it will, at Amazon's option, acquire shares proportionally from Amazon to keep the Amazon percentage of ownership under that threshold (i.e. if they buy back shares such that Amazon's stake would suddenly be over the threshold, Amazon can force them to buy some of the shares from Amazon so Amazon stays under that level).

Amazon did do a cashless exercise for a portion of the shares it acquired. It fully-exercised the one warrant on a cashless basis, and split the other warrant between a cashless and cash exercise. What if anything that reveals about its intentions, I don't know. I thought I read somewhere that Amazon had announced that it intended to hold the shares for some time, but I don't see anything in the SEC filing that says that, and I can't seem to find the report I read that said that. (And reporters are often wrong.) SEC filing: https://otp.tools.investis.com/clien...81&Index=10000

Note that the timing of all of this was likely substantially-influenced by the fact that some or all of these warrants would have expired around now if they hadn't been exercised.