KemPharm Shares Drop 12% After Warrant Exchange
By Chris Wack
KemPharm Inc. shares were down 12% to $13.62 after the company
said it has entered into agreements with certain of its holders of
its existing warrants to exchange 6.1 million common shares.
The holders will exercise their warrants for cash in exchange
for the company's agreement to issue in a private placement new
warrants to purchase up to 1.5 million shares.
The new warrants are immediately exercisable and have
substantially the same terms as the existing warrants, except that
the new warrants have an exercise price of $16.50 a share and
expire Dec. 31, 2026.
The proceeds from the exercise of the existing warrants and the
issuance of the new warrants are expected to total $39.1 million,
before deducting the financial advisory fees.
Write to Chris Wack at firstname.lastname@example.org
(END) Dow Jones Newswires
June 18, 2021 13:07 ET (17:07 GMT)
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