Bullish indicating open at $55-$60, IPO prices at $37
Veradigm Inc. (OTC Expert Market:MDRX), currently trading at $4.70 and down over 48% in the past six months according to InvestingPro data, reported Tuesday that it repurchased approximately $164 million in aggregate principal amount of its 0.875% Convertible Senior Notes due 2027 after holders exercised their right to require a buyback. The repurchase, which took place Monday, totaled about $180 million, including accreted and unpaid interest.
According to the company’s statement, the action was triggered under the terms of the convertible note indenture, following a notice from U.S. Bank Trust Company, National Association, acting as trustee. The repurchase right was exercised by certain noteholders as permitted under the indenture agreement, originally dated December 9, 2019, and supplemented on February 5, 2024.
After the transaction, Veradigm stated that approximately $44 million in principal amount of the convertible notes remain outstanding. The outstanding notes continue to carry biannual repurchase rights at the option of the holders.
This information is based on a press release statement included in Veradigm’s filing with the U.S. Securities and Exchange Commission.
In other recent news, Veradigm Inc. has expanded its 2024 Stock Incentive Plan, allowing for the issuance of an additional 6 million shares, bringing the total to 11 million shares available for grants. This expansion aims to align shareholder interests with those receiving awards and to attract and retain key personnel. The plan includes options like nonqualified stock options and performance units. Additionally, Veradigm has appointed BDO USA, P.C. as its new independent auditor, replacing Grant Thornton LLP. This decision follows a competitive selection process and is not due to any disagreements over accounting practices. Grant Thornton’s audit report for the fiscal year ended December 31, 2022, had highlighted material weaknesses in Veradigm’s internal controls, including issues related to revenue recognition and financial reporting. The company is now working to address these weaknesses as it transitions to BDO. These developments were disclosed in recent SEC filings by Veradigm.
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