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TURKU, Finland - Faron Pharmaceuticals Ltd. (AIM:FARN), a biopharmaceutical company focused on developing immunotherapies, has issued 5,000,000 treasury shares to itself. This strategic move, announced on Tuesday, is designed to prepare for potential future conversions of its First Tranche Bonds, part of a convertible bond arrangement with Heights Capital Management, Inc. (HCM).
The First Tranche Bonds, with a principal amount of EUR 15 million, are due on April 2, 2028. They are part of a larger EUR 35 million arrangement disclosed on April 3, 2025, allowing bondholders to convert bonds into shares at a fixed price of EUR 2.93952 per share. The first amortization payment is scheduled for June 2, 2025, with the option for the company to redeem the bonds either in cash or by issuing shares.
The newly issued treasury shares are expected to be registered in the Finnish Trade Register by June 3, 2025, and are slated to be admitted to trading on the Nasdaq First North Growth Market Finland and AIM, with trading anticipated to commence around June 4, 2025.
Following the issuance, Faron’s total share count will reach 116,601,608, with 5,000,000 held as treasury shares. These treasury shares will not confer voting rights or entitlement to dividends, maintaining the total voting rights in the company at 111,601,608. This figure is relevant for shareholders calculating changes in their shareholding interests.
The issuance of treasury shares is a common practice for companies looking to manage their capital structure efficiently and provide flexibility in fulfilling obligations such as convertible bond conversions. This action by Faron Pharmaceuticals indicates a proactive approach to financial management, ensuring that shares are readily available for conveyance to bondholders if needed.
The information for this report is based on a press release statement from Faron Pharmaceuticals Ltd.
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