Item 5. Market for Registrant’s Common Equity
Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Market Information
On June 29, 2021, our common stock began trading on the Nasdaq Global Select Market under the symbol “LZ.” Prior to that time, there was no public market for our common stock.
Holders of Record
As of February 28, 2022, there were 188 holders of record of our common stock .
Dividend Policy
We have not paid any dividends on our common stock and do not intend to pay dividends in the foreseeable future.
Recent Sales of Unregistered Securities; Purchases of Equity Securities by the Issuer or Affiliated Purchaser
The following sets forth information regarding all equity securities sold during the year ended December 31, 2021 that were not registered under the Securities Act:
• We issued to our officers and employees an aggregate of 456,486 shares of our common stock at per share purchase prices ranging from $0.34 to $2.50 pursuant to exercises of options under our 2016 Stock Incentive Plan, or 2016 Plan.
• We granted to our officers and employees, options to purchase 970,970 shares of our common stock with a per share exercise price of $28.00 under our 2016 Plan.
• We granted to our directors, officers and employees, 1,771,135 restricted stock units to be settled into shares of our common stock under our 2016 Plan.
• We issued and sold an aggregate of 3,214,285 shares of our common stock to four accredited investors at a price per share of $28.00 for an aggregate purchase price of $90.0 million.
The offers, sales, and issuances of the securities described above were deemed to be exempt from registration under the Securities Act in reliance on Section 4(a)(2) of the Securities Act or Regulation D promulgated thereunder or Rule 701 promulgated under the Securities Act as transactions by an issuer not involving a public offering or under benefit plans and contracts relating to compensation as provided under Rule 701. The recipients of securities in each of these transactions represented their intentions to acquire the securities for investment only and not with a view for sale in connection with any distribution thereof. All recipients had adequate access through their relationships with us, or otherwise to information about us. The issuances of these securities were made without any general solicitation or advertising.
On March 1, 2022, our board of directors authorized the repurchase of up to an aggregate of $150.0 million of our common stock. Repurchases may be made in the open market, in privately negotiated transactions or otherwise, with the amount and timing to be determined at our discretion, depending on market conditions and corporate needs. We expect to fund the repurchases with our existing cash and cash equivalents, working capital, cash flow from operations, or funds available through various borrowing arrangements. For addition information, refer to Note 22 in the notes to our consolidated financial statements included elsewhere in this Annual Report on Form 10-K.
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Performance Graph
The following performance graph and related information shall not be deemed “soliciting material” or to be “filed” with the SEC, nor shall such information be incorporated by reference into any future filing under the Securities Act or the Exchange Act, whether made before or after the date hereof and irrespective of any general incorporation language in any such filing, or otherwise subject to the liabilities under the Securities Act or Exchange Act, except to the extent that we specifically incorporate it by reference into such filing.
The following graph depicts the total cumulative stockholder return on our common stock from June 29, 2021, the first day of trading of our common stock on the Nasdaq Global Select Market, through December 31, 2021, relative to the cumulative total returns of the NASDAQ Composite Index and NASDAQ Internet Index. The graph assumes an initial investment of $100.00 at the close of trading on June 29, 2021. The performance shown in the graph below is not intended to forecast or be indicative of future stock price performance.
June 30, 2021 September 30, 2021 December 31, 2021
LegalZoom.com, Inc.
$100.00 $69.75 $42.46
NASDAQ Composite $100.00 $99.77 $108.20
NASDAQ CTA Internet $100.00 $93.01 $84.20
Item 6. Reserved
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