Cassava Sciences, Inc. Completes Distribution of Warrants to Shareholders
Cassava Sciences, Inc., a key player in the biotechnology industry, has finalized the issuance of warrants to its shareholders as of December 22, 2023. These warrants have been made available for trading on the Nasdaq exchange under the ticker SAVAW. For every ten shares of common stock held, shareholders received four warrants, with the distribution adjusted to the nearest whole number to eliminate fractional warrants.
Each warrant entitles the holder to purchase one share of the company’s common stock at an exercise price of $33.00. In a strategic move, the company has also launched a Bonus Share Program, which offers an additional 0.5 of a common share for each warrant exercised at no extra cost. This program is designed to incentivize the early exercise of the warrants and will have a publicly announced expiration date to ensure all participants are well-informed.
The terms and conditions of the warrants and the Bonus Share Program are detailed in a warrant agreement filed with the US Securities and Exchange Co.mmission. The company will receive cash proceeds only from those warrant holders who opt to exercise their warrants. It is critical to recognize that the warrants will become void and lose their value after the expiration date of November 15, 2024, at 5:00 p.m. New York City time, unless they are redeemed by the company at an earlier date.
The company has the right to redeem the warrants starting April 15, 2024, with a notice period of 20 calendar days. This redemption is at the company’s discretion and may be executed before the expiration date. Warrant holders have the option to exercise their warrants for shares or to sell them on the market.
This distribution is part of a non-registered issuance under the Securities Act of 1933, as the distribution of a warrant without consideration is not deemed a sale of a security. The company has complied with legal requirements by filing a prospectus supplement with the SEC.
The distribution of warrants by Cassava Sciences represents a noteworthy event for its shareholders, offering them a chance to increase their holdings in the company’s common stock. The addition of the Bonus Share Program serves as an incentive for the prompt exercise of these warrants. The company has maintained a transparent process, upholding regulatory standards. As the redemption period approaches, the company pledges to keep its shareholders informed and to uphold its commitment to effective corporate governance and shareholder relations.
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