The SEC has approved a prospectus allowing Ripple-backed Evernorth Holdings to issue shares from warrant exercises. Proceeds could go toward growing its XRP treasury, and XRP rose more than 5% on the news.
The US Securities and Exchange Commission (SEC) approved a prospectus that lets Ripple-backed Evernorth Holdings issue shares from warrant exercises, with proceeds potentially used for XRP treasury growth. Evernorth plans to sell more shares to buy more XRP.
What the notice of effectiveness allows
According to the notice of effectiveness, Evernorth can issue up to 11,499,992 shares of XRPN Class A common stock when public warrants are exercised for cash at $11.50 per share. If all warrants are exercised for cash, the company could receive approximately $132.25 million in gross proceeds.
However, the amount raised depends on how many warrants holders exercise. Evernorth receives proceeds only from cash exercises, not from other sales of the underlying shares under this prospectus. Dilution of existing shareholders is also a potential outcome if exercises occur at scale.
Management keeps broad approval over how it uses net proceeds, including for general corporate purposes. The company has said it plans to raise capital through share issuance and other means to buy more XRP, manage its holdings, seek yield strategies on the XRP Ledger and expand within the XRP ecosystem.
Evernorth's treasury and listing
Evernorth completed its merger with Armada Acquisition Corp II earlier this month and began trading on Nasdaq under the ticker XRPN. At closing, it held almost 473 million XRP, and its investors included Arrington Capital, SBI Group, Ripple, Pantera Capital, Kraken and GSR.
The company has also signaled plans to start deploying portions of its existing XRP treasury in the fourth quarter of 2026 through institutional partners including Ripple, Kraken, Coinbase and BitGo.
XRP rises with the news
In premarket trading, XRPN was near $15.16 and the warrants (XRPNW) around $4. XRP jumped more than 5% in the last 24 hours, trading around $1.35, with a 24-hour high of $1.37 and trading volume up more than 30%.
Source: CoinGape
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