||in the reorganization transactions related to issuer's ipo, shares of issuer's class c common stock, par value $0.001, were issued to certain holders of ld holdings class a common units ("common units") equal to the number of common units held by such holders. pursuant to the fourth amended and restated limited liability company agreement of ld holdings, holders of common units may, subject to certain exceptions, from time to time require ld holdings to redeem all or a portion of their common units (together with an equal number of shares of class c common stock) in exchange for, at the issuer's election (determined solely by a majority of the issuer's directors who are disinterested), newly issued shares of class a common stock, par value $0.001 ("class a common stock") of the issuer on a one-for-one basis or a cash payment equal to an average market price of one share of class a common stock for each common unit so redeemed.
||the reporting person has, and at all times since the issuer's initial public offering ("ipo") has held, an indirect pecuniary interest in a portion of the securities of the issuer and ld holdings group llc ("ld holdings") directly held by trilogy management investors seven, llc ("trilogy seven") as reported on anthony hsieh's form 4 filed on february 16, 2021. all of the securities of the issuer held by trilogy seven are directly reported by trilogy seven and were not previously reported by the persons holding an indirect interest in the securities. the reporting person disclaims beneficial ownership of the securities held by trilogy seven except to the extent of his pecuniary interest therein.
||the reporting person elected to cause trilogy seven to exchange a portion of the common units beneficially owned by the reporting person for an equal number of shares of class a common stock, and to cause trilogy seven to transfer such shares of class a common stock to the reporting person directly. the shares of class c common stock corresponding to the common units that were exchanged were cancelled for no consideration. the cancellation of the shares of class c common stock is reported by trilogy seven on anthony hsieh's form 4 filed simultaneously herewith.