Cassava Sciences finalizes distribution of warrants for stock purchase

  • Investing.com
  • Stock Market News
Cassava Sciences finalizes distribution of warrants for stock purchase
Credit: © Reuters.

AUSTIN, Texas - Cassava Sciences, Inc. (NASDAQ: SAVA ), a clinical-stage biotechnology company, has completed the distribution of warrants to its shareholders, allowing them to purchase additional shares of the company's common stock. The warrants, now trading on Nasdaq under the ticker SAVAW, were issued to stockholders at a ratio of four warrants for every ten shares owned as of December 22, 2023.

Each warrant grants the right to buy one share of Cassava Sciences common stock at $33.00. Furthermore, an early exercise incentive offers an additional 0.5 share per warrant, termed the Bonus Share Fraction, under specific conditions. This bonus will expire on the earlier of a set market price condition being met or a date announced by the company with a minimum of 20 business days' notice.

The warrants are redeemable by Cassava Sciences starting April 15, 2024, with a 20-day notice period, and will expire on November 15, 2024, if not redeemed earlier. The company will only receive cash proceeds from warrants that are exercised.

The warrant distribution is not registered under the Securities Act of 1933, as it is considered a non-sale distribution. However, the shares underlying the warrants are covered by a prospectus supplement filed with the SEC.

Cassava Sciences specializes in the development of treatments for neurodegenerative diseases, such as Alzheimer's disease. The company's lead product candidate, Simufilam, is currently undergoing Phase 3 clinical trials.

Shareholders are advised to consult the prospectus supplement and the warrant agreement for detailed information regarding the terms and risks of the warrants. This news is based on a press release statement from Cassava Sciences.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or

100

Related Articles