INNOVATE Corp. — Director's Dealing 2020

Nov 25, 2020

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: HC2 HOLDINGS, INC. (HCHC)
CIK: 0001006837
Period of Report: 2020-11-20

Reporting Person: Gorzynski Michael (Director)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2020-11-20	Common Stock, par value $0.001 per share	X	2176621	$2.27	Acquired	4990758	Indirect

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2020-11-20	Subscription Rights (right to buy)	$2.27	X	2814137	Disposed	2020-11-20	Common Stock (2176621.0)	Indirect

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	33747	Direct

Footnotes

F1: These shares were directly acquired by the reporting person as a result of the exercise of subscription rights which were issued to the reporting person in the Issuer's rights offering.

F2: These securities are directly owned solely by (i) Percy Rockdale LLC ("Percy Rockdale") and (ii) Rio Royal LLC ("Rio Royal"). As of the date hereof, Percy Rockdale beneficially owns 4,919,768 shares of Common Stock and Rio Royal beneficially owns 24,462 shares of Common Stock. Mr. Gorzynski, as the sole Manager of Percy Rockdale and the sole Director of MG Capital Management, may be deemed to beneficially own the shares of Common Stock directly held by each of Percy Rockdale and Rio Royal.

F3: Each of Percy Rockdale, Rio Royal and Mr. Gorzynski may be deemed to be a member of a "group" for purposes of Section 13(d) of the Exchange Act and may be deemed the beneficial owner of the shares directly owned by the other persons. Pursuant to Rule 16a-1(a)(4) under the Securities Exchange Act of 1934, as amended (the "Act"), the reporting person disclaims beneficial ownership of any securities reported herein, except to the extent that the reporting person has a pecuniary interest therein. This report shall not be deemed an admission that such reporting person is the beneficial owner of any securities not directly owned by such reporting person.

F4: Every one (1) subscription right entitles the reporting person to purchase 0.5462 shares of the Issuer's common stock at a subscription price per full share of $2.27, plus oversubscription privileges at the same per-share price. The reporting person exercised his oversubscription privilege and was accordingly allocated an additional 639,541 shares of common stock.