Three former SPAC sponsors were owed about $6.9 million. They settled for 5% in cash. The rest they accepted as warrants — the right to buy StablecoinX shares at prices the stock is not currently reaching.
StablecoinX completed its merger with TLGY Acquisition Corp in June and inherited the debt along with it. TLGY had issued the notes to three entities — TLGY Sponsors LLC and two CPC Sponsor Opportunities funds — to cover working capital and extension loans while the blank-cheque company searched for a merger target.
On August 21, the company and the three former sponsors signed a restructuring agreement, according to an 8-K filed with the SEC on August 24. The terms: 5% of the original principal paid in cash, 47.5% settled in Tranche A warrants exercisable at $11.50 a share, and the remaining 47.5% in Tranche B warrants exercisable at $15.00. The sponsors waived all remaining claims on the original notes.
Both strike prices sit above where the stock is trading now, meaning neither tranche is currently worth exercising. But the Tranche A warrants run to June 25, 2031, and the Tranche B warrants for eight years from issuance — so the former sponsors have time to wait.
If the share price does climb past those levels, existing holders would see new shares created: every new share issued makes the ones already outstanding a smaller slice of the same company. A further feature: while the former sponsors hold the warrants, they can receive shares by surrendering the warrants rather than sending cash to the company. StablecoinX conserves cash upfront, but collects no exercise proceeds from the sponsors if that right is used.
Shares closed 34.95% higher at $8.0700 on Thursday, on dollar volume of about $169 million.
The filing does not state how many warrants were issued in total — the form documents attach placeholder counts rather than final figures. That number will determine the actual scale of potential dilution sitting on the table.