GoPro shares fell nearly 7 percent Thursday, resulting in a loss of about $800 million in market value following an impressive run that saw the wearable camera company's share close out last month at a record high of $96.45.
The drop in the shares came as GoPro announced that a portion of its Class A shares would be exempt from a
lock-up restriction, Reuters reported. The company said that roughly 5.8 million Class A shares have been exempt from a lock-up period that would end in December as its chief executive, Nicholas Woodman, and wife Jill transferred those shares to their charitable organization, the wire agency stated.
Woodman's announcement stunned investors, according to USA Today, because the charity, the Jill + Nicholas Woodman Foundation, will be free to sell the shares on Friday, thus avoiding the lock-up period.
"Investors were told in the company's prospectus that officers and directors would wait at least 180 days before selling shares," USA Today's America's Markets blog reported. "Such lock-ups are important to IPO investors because it protects them from a flood of shares. The company said J.P. Morgan Security agreed to release the lock-up period connected to the transaction."
A statement on GoPro's website about the foundation mentions little about it or its contributions, saying more information would come at a later date.
"We wake up every morning grateful for the opportunities life has given us," Nicholas and Jill Woodman said in a joint statement on the GoPro website. "We hope to return the favor as best we can."
CNN Money reported that the gift was a small share of Woodman's holdings. Woodman held 52.4 million shares at the time of his company's June IPO, according to U.S. Securities and Exchange Commission documents.
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