Ranpak Holdings grants Walmart warrant to purchase up to 22.5 million shares

Published 26/08/2025, 12:54
Ranpak Holdings grants Walmart warrant to purchase up to 22.5 million shares

Ranpak Holdings Corp. (NYSE:PACK), a packaging solutions company with a market capitalization of $411 million and currently trading at $4.83, announced Monday that it has entered into a transaction agreement with Walmart Inc. According to InvestingPro data, the company has shown strong returns recently, with the stock up over 8% in the past week, though it remains volatile with a beta of 2.7. Under the agreement, Ranpak has issued Walmart a warrant to acquire up to 22,500,000 shares of Ranpak’s common stock at an exercise price of $6.8308 per share. The warrant was granted as part of a broader commercial arrangement between the two companies.

According to the statement, 2,250,000 warrant shares vested immediately on the date of the agreement, which was Friday. The remaining shares are subject to vesting over time, based on payments made by Walmart or on Walmart’s behalf under current and potential future commercial agreements with Ranpak. All warrant shares will vest if Walmart’s aggregate spend with Ranpak reaches $300 million, with the total calculated net of paper procurement costs incurred by Ranpak and its affiliates related to those payments.

Ranpak stated that it expects over $100 million of any such spend would be allocated to Automation Solutions, with the remainder focused on Protective Packaging Solutions.

The warrant allows Walmart to exercise it in part or in full at its discretion, including on a cashless basis, and expires August 22, 2035. With a current ratio of 1.74 and revenue growth of 10.4% in the last twelve months, Ranpak maintains reasonable liquidity despite challenging market conditions. Discover more key financial metrics and exclusive insights with InvestingPro, which offers 6 additional ProTips for this stock. Until exercised, the warrant does not provide Walmart with voting or other rights as a common stockholder. The exercise price and number of shares are subject to customary anti-dilution adjustments. The agreement also provides Walmart with customary registration rights for the warrant shares.

The issuance of the warrant and expected issuance of shares rely on an exemption from registration under Section 4(a)(2) of the Securities Act of 1933. Ranpak noted that this announcement does not constitute an offer to sell or a solicitation of an offer to buy any security.

This information is based on a statement from Ranpak Holdings Corp. filed with the Securities and Exchange Commission.

In other recent news, Ranpak Holdings Corp. reported its Q2 2025 earnings, which fell short of expectations. The company announced a loss per share of $0.09, compared to the anticipated loss of $0.06, and revenue of $92.3 million, slightly under the forecasted $94.3 million. Despite these earnings misses, Ranpak Holdings’ stock experienced a significant surge. Additionally, Ranpak Holdings has expanded its partnership with Walmart through a new strategic agreement. Under this multi-year deal, Walmart will deploy Ranpak’s AutoFill systems across five of its Next Generation Fulfillment Centers. These centers are located in Pennsylvania, Illinois, Texas, and California, building on the existing implementation at McCordsville, Indiana. The expansion reflects a strengthening collaboration between the two companies.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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