Current Price: $0.50
Offer Price: $0.605
Expiration Date: 24th of August 2020
This is a short note as the situation might be available only for a limited amount of time.
Bioceres Crop Solutions intends to eliminate all of its outstanding warrants (24.2m) and on the 27th of July has made an offer to exchange them into either $0.45/share in cash or 0.12 BIOX shares. At the current prices, share consideration offers 21% upside. Last time I chekced some borrow for hedging was still available on IB (with a 35% annual fee, which will decrease the upside by 2%). The expiration date is set for the 24th of August.
There seem to be no minimum selection requirements on either the cash or stock, so investors will receive the full consideration amount in the form that was chosen (no proration for cash/stock).
Minimum acceptance condition stands at 50% (12.1m) and is guaranteed to be satisfied as certain warrant holders that own 11.6m combined have already agreed to tender.
Offer is not conditioned on financing, while the cash consideration will be funded by cash on hand + $42.5m proceeds from the debt issuance in March.
No fractional exchange shares will be issued. For any holders electing to receive the consideration in shares, warrants may only be exchanged for whole exchange shares (the company will round the number).
The company specializes in crop productivity solutions, including seeds, seed traits, seed treatments, biologicals, high-value adjuvants, and fertilizers.