SAVA - Cassava Sciences Announces Dividend Distribution of Warrants to Shareholders | Benzinga
- Shareholders of Record Will Receive Warrants to Purchase Shares of Common Stock
- All Warrants to Be Distributed to Shareholders Free of Charge
- Warrants Are Expected to List and Trade on Nasdaq
- Warrant Holders Who Choose to Exercise During an Early Period Will Also Receive an Additional 0.5 of a Common Share Per Warrant
AUSTIN, Texas, Dec. 12, 2023 (GLOBE NEWSWIRE) -- Cassava Sciences, Inc. (NASDAQ:SAVA) ("Cassava Sciences" or the "Company") today announced a pro rata dividend distribution of warrants to holders of the Company's common stock as of December 22, 2023 (the "Record Date"). Shareholders will receive 4 warrants for each 10 shares of common stock held as of the Record Date, subject to rounding. Cassava Sciences will distribute the warrants to shareholders on or about January 3, 2024 (the "Distribution Date"). After the Distribution Date, the warrants are expected to list and trade on Nasdaq, separate from Cassava Sciences' common stock, under the ticker SAVAW.
"Many parties are deeply vested in the long-term success of Cassava Sciences, including its directors, management and employees," said Remi Barbier, President & CEO. "We believe a warrant distribution underscores the inherent strength of the Company. It allows our shareholder base to participate in a process of raising capital. We intend to use the cash proceeds from the exercise of the warrants to support our ongoing Phase 3 clinical development of oral simufilam in people with Alzheimer's disease."
Details of Warrant Distribution
Stockholders will receive 4 warrants for each 10 shares of common stock held as of the Record Date, rounded down to the nearest whole number for any fractional warrant. As an example, a shareholder who owns 1,000 shares of Cassava Sciences will receive 400 warrants plus, as applicable and as described below, the Bonus Share Fraction. Each warrant will entitle the holder to purchase, at the holder's sole and exclusive election, one share of common stock at an initial exercise price of $33.00 per share plus, as applicable and as described below, the Bonus Share Fraction.
After the Distribution Date, warrant holders may cash-exercise their warrants, or they may sell their warrants on the open market. The Company will receive cash proceeds only from warrant holders who exercise their warrants. Warrant holders may exercise their warrants as will be specified under the terms of a warrant agreement that is expected to be filed with the U.S. Securities and Exchange Commission ("SEC") on or about January 3, 2024.
All warrants will expire on Friday, November 15, 2024, at 5:00 p.m. New York City time, unless redeemed by the Company before that date. The warrants will be redeemable by the Company on or after April 15, 2024, upon 20 calendar days' notice.
A Q&A regarding this warrant distribution has been posted in the Investor's section of the Company's website, https://www.CassavaSciences.com
Details of Bonus Share Program
The Bonus Share Fraction entitles a holder to receive an additional 0.5 of a share of common stock for each warrant exercised (the "Bonus Share Fraction") without payment of any additional exercise price. After ...