Sharechat Logo

ArborGen Announces Repurchase of Warrants

Thursday 4th May 2023

Text too small?

ArborGen Holdings Limited (NZX: ARB ) (ArborGen Holdings) advises that its wholly owned subsidiary, ArborGen Inc., has negotiated the repurchase of all outstanding warrants, which equates to approximately 5% of ArborGen Inc.’s fully diluted common stock. The purchase price is US$1.35 million (less the warrant holders’ transaction costs of approximately US$27,500). Holders of warrants that total more than 66.67% in interest of such warrants have approved the terms and conditions of the repurchase as required by the original warrant documents, and all holders of warrants are now obligated to sell them to ArborGen Inc.


These warrants relate to ArborGen Inc.’s acquisition of the assets, germplasm, technology, and intellectual property of the leading loblolly pine varietal company in the US – CellFor Inc. (CellFor) in August 2012. As consideration for CellFor’s assets, ArborGen Inc. (a) paid CDN $1.1 million in cash and (b) issued warrants to purchase shares of ArborGen Inc. common stock. Pursuant to the warrant documents, each holder of a warrant is entitled, subject to certain terms and conditions and at any time no later than June 19, 2032, to purchase the number of common shares calculated as specified in the warrant documents, at a purchase price per share of US$0.001.


The purchase price of US$1.35 million represents a significant discount and reflects factors that include:

- the warrants are not traded on any market and are exercisable for shares of ArborGen Inc., rather than shares of ArborGen Holdings

- ArborGen Inc. is not obligated to repurchase the warrants

- the purchase price consideration is in cash, giving the holders immediate liquidity

- ArborGen Inc. owes intercompany advances to ArborGen Holdings of approximately US$11 million.


Following the repurchase of the warrants, there will be no more warrants, options or other rights to purchase ArborGen Inc. common stock, and ArborGen Holdings’ effective economic interest in ArborGen Inc. will increase from 95% to 100% with no dilution overhang.


ArborGen Inc. has engaged a payment agent, Acquiom Financial LLC, to facilitate the repurchase process, including the payments to the warrant holders.



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

PFI Announces Annual Results
SUM - Financial Results for the Year Ended 31 December 2023
GMT positioned for growth with Internalisation Proposal
Bright Dairy Director appointed
February 26th Morning Report
BLT - Revenue Growth and Profitable Third Quarter
MOVE Logistics Group - 1H24 Results
TRU - CEO Resignation and Interim CEO Appointment
JLG - Preliminary Half-Yearly Result and Trading Update
February 23rd Morning Report