Stock, convertible preferreds sold with warrants by Ladenburg Thalmann
By Devika Patel
Knoxville, Tenn., Dec. 17 – Ceres, Inc. said the underwriters for its public offering of units opted to exercise the deal’s $1.01 million greenshoe in part, lifting total proceeds of the offering to $7.62 million. The deal was announced Sept. 1 and priced for $6.7 million with the greenshoe on Dec. 15.
The company sold 2,905,000 class A units of one common share and one warrant at $0.40 per unit and 6,460 class B units of one convertible preferred share and 2,500 warrants at $1,000 per unit. The greenshoe was for 2,512,500 class A units.
Of the class A units, 2,305,000 were part of the partially exercised greenshoe.
Each warrant will be exercisable at $0.40 for five years. The strike price is an 18.37% discount to the Dec. 14 closing share price of $0.49.
Each preferred converts to 2,500 common shares at $0.40 per share, which is also an 18.37% discount to the Dec. 14 closing price. The preferreds will be convertible into a total of 16.15 million common shares.
Ladenburg Thalmann & Co. Inc. was the bookrunner.
Proceeds will be used for general corporate purposes, including working capital.
The agricultural biotechnology company is based in Thousand Oaks, Calif.
| Issuer: | Ceres, Inc.
|
| Issue: | Class A units of one common share and one warrant, class B units of one convertible preferred share and 2,500 warrants
|
| Amount: | $7,622,000
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.40
|
| Bookrunner: | Ladenburg Thalmann & Co. Inc.
|
| Announcement date: | Sept. 1
|
| Pricing date: | Dec. 15
|
| Settlement date: | Dec. 17
|
| Stock symbol: | Nasdaq: CERE
|
| Stock price: | $0.49 at close Dec. 14
|
| Market capitalization: | $3.1 million
|
|
|
| Class A units
|
| Amount: | $1,162,000, including $922,000 via greenshoe
|
| Units: | 2,905,000, including 2,305,000 via greenshoe
|
| Price: | $0.40
|
| Warrants: | One warrant per unit
|
|
|
| Class B units
|
| Amount: | $6.46 million
|
| Units: | 6,460
|
| Price: | $1,000
|
| Warrants: | 2,500 warrants per unit
|
| Conversion price: | $0.40
|
| Conversion ratio: 2,500 common shares per preferred share, or a total of 16.15 million common shares
|
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