With shares down 77% year-to-date Sonder Holdings (SOND), which manages studio apartments rented to leisure travelers, launched an option repricing program in an effort to ensure executive awards pay out.

Regardless of whether the options have vested, Sonder revealed the options will have a new exercise price based on the company’s closing share price November 15, 2022.

Sonder came public via a special purpose acquisition company (SPAC) less than two years after the company learned it was under investigation by the New York City Department of Health and Mental Hygiene concerning possible Legionella bacteria contamination in the water supply of one of the properties it manages.

The company blames the property’s landlord for not addressing the contamination and potential health consequences to Sonder’s guests. Sonder withheld rent due the landlord, who is now suing Sonder.

The company posted negative free cash flow (Op cash flow less CapEx) of $147.5 million in the nine months ended September 30, 2022. With $318.4 million in cash after executing on a delayed draw note issuance, Sonder is on pace, according to our analysis, to run out of cash in approximately 6.3 quarters.