TLDR:
- Ryan Breslow planned to raise $450 million for Bolt, but investors claimed they had not given their support.
- BlackRock, along with other investors, applied for a restraining order to halt Bolt’s Series F round in Delaware’s Court of the Chancery.
According to Forbes, the chaos surrounding Bolt founder Ryan Breslow’s $450 million raise has caused confusion and contention among investors. Breslow thanked a group of investors for their support, but some investors claimed they had not given their permission. Only one of the 13 named investors confirmed their support. The planned raise and reinstatement of Breslow as CEO require the majority approval of preferred shareholders, but some investors have expressed opposition.
The situation escalated further as BlackRock, along with Hedosophia and Untitled Ventures, applied for a restraining order to halt Bolt’s Series F. These investors claimed Bolt was coercing them by forcing a decision on new stock purchases or facing a significant loss in their existing investment. The legality of the Series F fundraise was called into question, with claims that it had not been approved by Bolt’s board of directors.
The article highlights the financial struggles of Bolt, with the company experiencing significant losses in 2023. Breslow, who had previously acted as executive chairman after stepping back as CEO, faced challenges including legal disputes with investors over personal loans and boardroom conflicts. The proposed terms for the $450 million raise include potential consequences for shareholders, even if the lead investor fails to provide the expected investment.
