# Root, Inc. (ROOT) — capital_raise/public_offering [announced]
Source: sec.gov · situation sit_5be4b5623ae6ef9fc271 · public 2255687435766827545 · retrieved 2026-09-03T06:55:06.174Z

## Overview
Root, Inc. is an insurance company that develops integrated automobile insurance solutions for online car buying platforms, including through a partnership with Carvana.

On August 31, 2026, Root, Inc. and Carvana Group, LLC entered into a Warrant Cancellation and Exchange Agreement whereby Carvana surrendered and Root cancelled all outstanding long-term warrants previously issued on October 1, 2021 (comprising 5 tranches originally exercisable for approximately 6.17 million shares pre-split, or 5.17 million shares post-August 2022 reverse split). Simultaneously, Root issued Carvana a new Common Stock Purchase Warrant entitling Carvana to purchase up to 1,525,560 shares of Class A Common Stock (representing approximately 8.5% on a fully diluted basis as of the issuance date), comprised of five independently exercisable tranches of 305,112 shares each. Each tranche vests upon achievement of cumulative insurance policy milestones (180,000, 210,000, 250,000, 290,000, and 340,000 attributed policies, respectively) and carries exercise prices at 30%, 40%, 50%, 60%, and 70% premiums to the signing VWAP of $55.72, with a termination date of August 31, 2028.

## Terms
- Counterparty: Carvana Group, LLC · Stake: 8.5%

## Key dates
- Announced 2026-09-01 · Expiry 2028-08-31

## Timeline
- 2026-09-01 · 8-K (0001788882-26-000068): 8-K - Root, Inc. — *Root, Inc. is an insurance company that develops integrated automobile insurance solutions for online car buying platforms, including through a partnership with Carvana.* On August 31, 2026, Root, Inc. and Carvana Group, LLC entered into a Warrant Cancellation and Exchange Agreement whereby Carvana surrendered and Root cancelled all outstanding long-term warrants previously issued on October 1, 2021 (comprising 5 tranches originally exercisable for approximately 6.17 million shares pre-split, or 5.17 million shares post-August 2022 reverse split). Simultaneously, Root issued Carvana a new Common Stock Purchase Warrant entitling Carvana to purchase up to 1,525,560 shares of Class A Common Stock (representing approximately 8.5% on a fully diluted basis as of the issuance date), comprised of five independently exercisable tranches of 305,112 shares each. Each tranche vests upon achievement of cumulative insurance policy milestones (180,000, 210,000, 250,000, 290,000, and 340,000 attributed policies, respectively) and carries exercise prices at 30%, 40%, 50%, 60%, and 70% premiums to the signing VWAP of $55.72, with a termination date of August 31, 2028.
  https://www.sec.gov/Archives/edgar/data/1788882/0001788882-26-000068.txt

## Citations
- 0001788882-26-000068 — https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&type=&dateb=&owner=include&count=40&search_text=000178888226000068