- Rare disease-focused biotech Sarepta Therapeutics ( NASDAQ: SRPT ) lost ~4% pre-market Friday after announcing a share exchange agreement with some of its convertible debt holders.
- Per the terms of the agreement signed on Mar. 02, Sarepta’s ( SRPT ) 1.50% convertible senior notes due 2024 with a total principal value of ~$313.5M will be exchanged for shares of the company’s common stock.
- The agreement permits the exchange of convertible debt to ~3.8M shares of the common stock, which implies 12.2589 shares per $1,000 principal amount of notes, plus some additional shares calculated based on a ratio using the company’s share price.
- The transactions are expected to close on March 07, 2023, subject to customary closing conditions, Sarepta ( SRPT ) said in a regulatory filing.
- Seeking Alpha contributor Terry Chrisomalis reaffirmed his Strong Buy rating on Sarepta ( SRPT ) in January, citing the potential FDA approval of gene therapy SRP-9001 as a key catalyst expected from the biotech this year.
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Sarepta falls after announcing share exchange agreement