Cassava Sciences Completes Distribution of Warrants to Shareholders
Cassava Sciences, Inc. the Austin-based biotechnology firm, has announced the successful completion of a warrant distribution to its shareholders of record as of December 22, 2023. These warrants, now trading on Nasdaq under the symbol “SAVAW,” were issued at a ratio of four warrants for every ten shares of common stock owned by shareholders.
Each warrant entitles the holder to acquire one share of Cassava Sciences’ common stock at a predetermined exercise price of $33.00. In an innovative move, the company has also launched a Bonus Share Program. This initiative allows holders who exercise their warrants early to receive an additional 0.5 of a common share for each warrant exercised, subject to certain conditions and within a defined period. This program is aimed at encouraging the early exercise of warrants without the need for an additional payment.
The firm has stipulated that these warrants will expire on November 15, 2024, at 5:00 p.m. New York City time, unless they are redeemed by the company at an earlier date. The redemption of these warrants may be executed on or after April 15, 2024, provided that a 20-day notice is given to the warrant holders. Post expiration or redemption by the company, the warrants will cease to possess any financial value.
The company has committed to announcing the Bonus Share Expiration Date before the market opens on the designated date, should the Bonus Price Condition be satisfied, or with at least 20 business days’ notice if the date is determined by the company. The setting of the Bonus Share Expiration Date will either be based on the achievement of the Bonus Price Condition or on a date chosen by the company, ensuring that sufficient public notice is given.
This distribution represents a non-cash transaction and has not been registered under the Securities Act of 1933, as amended. Cassava Sciences has taken appropriate legal measures to ensure compliance with regulatory standards, including the submission of necessary filings with the US Securities and Exchange Commission (SEC).
Cassava Sciences has finalized the distribution of warrants to its shareholders. The Bonus Share Program serves as an incentive for the prompt exercise of these warrants, offering an additional fractional share at no extra cost. With the warrants actively traded on Nasdaq, the company has provided clear directives regarding their redemption and expiration. The completion of this distribution signifies a noteworthy event in the corporate timeline of the company, underscoring its dedication to maintaining a dynamic relationship with its shareholders.
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