DoorDash Announces Expected Stock Sales From Co-Founders
DoorDash, Inc. (NYSE: DASH) ("DoorDash") today announced that Tony Xu, Andy Fang, and Stanley Tang, co-founders of DoorDash, each adopted a stock trading plan in accordance with Rule 10b5-1 of the Securities and Exchange Act of 1934, as amended, and the policies of DoorDash regarding stock transactions.
Mr. Xu, Mr. Fang, and Mr. Tang each have unexercised options that expire on June 25, 2024. The trading plans were adopted in order to allow Mr. Xu, Mr. Fang, and Mr. Tang to sell DoorDash Class A common stock acquired through planned option exercises in advance of such options expiring. Under these trading plans, Mr. Xu, Mr. Fang, and Mr. Tang intend to spread their dispositions of DoorDash stock over a period beginning in February 2023 and ending between February 2024 and June 2024. All sales under Mr. Xu's, Mr. Fang's, and Mr. Tang's trading plans are subject to volume limitations, pursuant to Rule 144, which limit the number of shares that can be sold in any three-month period.
Under the terms of the new trading plans, Mr. Xu intends to sell up to approximately 2.2 million shares of Class A common stock, Mr. Fang intends to sell up to approximately 2.0 milion shares of Class A common stock, and Mr. Tang intends to sell up to approximately 2.4 million shares of Class A common stock.
Since the planned dispositions under these stock trading plans are associated with options exercises, we do not expect these dispositions to reduce Mr. Xu, Mr. Fang, and Mr. Tang's common stock holdings or voting power compared to current levels.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risks and uncertainties. Forward-looking statements in this press release include, but are not limited to, our expectations about the amount and timing of sales of our Class A common stock by our co-founders. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including risks and uncertainties related to: fluctuations in our stock price, changes in law or legal requirements, or legal or contractual restrictions on sales of stock by the co-founders. The forward-looking statements contained in this press release are also subject to other risks and uncertainties that could cause actual results to differ from the results predicted, including those more fully described in our filings with the SEC, including our Annual Report on Form 10-K for the year ended December 31, 2021 and our quarterly reports on Form 10-Q. All forward-looking statements in this press release are based on information available to DoorDash and assumptions and beliefs as of the date hereof, and we disclaim any obligation to update any forward-looking statements, except as required by law.
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