Root (ROOT) 10% Owner Carvana Cancels and Exchanges Warrants

What Happened

• Carvana Group, LLC (a 10% owner) reported a series of derivative dispositions and acquisitions on 2026-08-31 related to a Warrant Cancellation and Exchange Agreement with Root, Inc. Five previously issued long‑term warrants were cancelled (reported as dispositions) and exchanged for a single new Common Stock Purchase Warrant (reported as acquisitions of new tranches). All reported transactions were at $0.00 per share (no cash exchanged).
• Reported derivative movements: dispositions totalling 7,171,658 derivative share equivalents (individual disposals of 1,435,820; 1,491,907; 1,503,428; 1,452,587; 1,287,916) and acquisitions totalling 1,525,560 derivative share equivalents (five acquisitions of 305,112 each). Net derivative disposition = 5,646,098 share equivalents.

Key Details

• Transaction date: August 31, 2026; Form filed September 2, 2026 (appears filed within the typical 2‑business‑day window).
• Price: all entries reported at $0.00 per share (derivative exchange, not a cash sale/purchase).
• Shares owned after transaction: not specified in the provided summary of the filing.
• Footnotes of significance:
  • The five long‑term warrants were cancelled and exchanged for a new Common Stock Purchase Warrant whose tranches are exercisable only upon meeting defined insurance‑sale milestones (Warrant Cancellation Agreement).
  • The Warrants and Series A Convertible Preferred Stock are held directly by Carvana Group, LLC; Carvana Co. exercises voting and dispositive power over the warrants.
  • 14,053,096 shares of Series A Convertible Preferred Stock convert into 780,727 Class A common shares and the Preferred Stock has no expiration date.
• Filing timeliness: appears timely based on provided dates (no late‑filing flag noted).

Context

• These are derivative transactions tied to a contractual warrant exchange — not an open‑market buy or sale of common stock. The reports reflect cancellation of old warrants and issuance/allocation of a new warrant with milestone conditions, and thus represent a restructuring of derivative rights rather than a cash transaction.
• Carvana Group is a 10% institutional owner (not an individual executive), so this activity reflects institutional reshaping of its derivative position in Root rather than typical insider buying/selling by management.