Cresud Sociedad Anónima Comercial, Inmobiliaria, Financiera y Agropecuaria Announces Definitive Subscription Price for Rights Offering

Rhea-AI Summary

Cresud announced its rights offering for holders of record as of February 19, 2021. The offering allows for subscription to new American Depositary Shares (ADSs) at a price of US$4.72 and new common shares at US$0.472 per share. Holders will receive warrants with an exercise price of US$0.566, valid for five years. The subscription for ADSs expires on March 2, 2021, and for common shares on March 5, 2021. Cresud retains the discretion to cancel the offering at any time, which would lead to a refund of all funds received.

Positive

• Rights offering allows shareholders to acquire additional ADSs and common shares under favorable terms.
• Warrants provide an opportunity for further investment at an attractive price of US$0.566.

Negative

• Cresud may cancel the offering, potentially leading to losses for current investors if rights expire worthless.
• Market price fluctuations could result in the definitive subscription price being unfavorable for investors.

BUENOS AIRES, Argentina, Feb. 25, 2021 /PRNewswire/ -- Cresud Sociedad Anónima Comercial, Inmobiliaria, Financiera y Agropecuaria (the "Company") (NASDAQ: CRESY) announced today, in connection with its previously-announced offering to holders of record on February 19, 2021 of (i) American Depositary Shares ("ADSs") representing its common shares, of rights to subscribe for 0.1794105273 new ADSs for every ADS held of record, and (ii) its common shares, of rights to subscribe for 0.1794105273 new common shares for every common share held of record, the definitive subscription price for each new ADS or common share in the proposed offering of US$4.72 and US$0.472, respectively. In addition, the Company announced that warrants which the proposed offering contemplates that holders will receive, free of charge, for each new common share purchased, will have an exercise price of US$0.566. The warrants will be exercisable after 90 days following their issuance, prior to their expiration on the fifth anniversary of their issue date, during the nine-day period from and including the 17th through the 25th day of each February, May, September and November (to the extent such dates are business days in New York City and in the City of Buenos Aires). Each warrant will entitle the holder thereof to purchase one additional common share. The subscription period for the rights to acquire ADSs will expire on March 2, 2021, unless extended by the Company. The subscription period for the rights to acquire common shares will expire on March 5, 2021, unless extended by the Company. The new ADSs and warrants acquired pursuant to the rights offering made to ADS holders are expected to be issued and made available as soon as practicable after the new common shares are deposited with the ADS depositary's custodian in Argentina. The new common shares and warrants acquired pursuant to the rights offering made to holders of common shares are expected to be issued and made available within five business days (in New York City and Buenos Aires, Argentina) following the expiration of the common shares subscription period.

Cresud may terminate or cancel the proposed offering in its sole discretion at any time on or before the expiration of the common shares subscription period for any reason (including, without limitation, a change in the market price of the common shares or the ADSs). If the offering is terminated, all rights will expire without value and Cresud will promptly arrange for the refund, without interest or deduction, of all funds received from holders of common share and ADS rights. Any termination or cancellation of the rights offering will be followed as promptly as practicable by an announcement. Cresud may amend or modify the terms of the rights offering, and may extend the expiration date of the rights offering.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities. Any offers, solicitations of offers to buy, or any sales of securities will be made in accordance with the registration requirements of the U.S. Securities Act of 1933, as amended (the "Securities Act"). A registration statement relating to these securities has been declared effective by the Securities and Exchange Commission.

Matters discussed in this press release contain forward-looking statements within the meaning of Section 27A of the Securities Act, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act"), that involve substantial risks and uncertainties, including but not limited to the risk that the definitive subscription price may be higher than the non-binding indicative subscription price. In addition to the risks and factors identified above, reference is also made to other risks and factors detailed in reports filed by Cresud with the Securities and Exchange Commission. Cresud cautions that the foregoing factors are not exclusive. Cresud undertakes no obligation to publicly update or revise any forward-looking statement in this or any prior forward-looking statements whether as a result of new information, future developments or otherwise.

Investor Relations Department
CRESUD S.A.C.I.F.y.A
+ 5411 4323-7449
ir@cresud.com.ar  
www.cresud.com.ar  

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SOURCE Cresud S.A.C.I.F. y A.

FAQ

What is the definitive subscription price for Cresud's rights offering?

The definitive subscription price for new ADSs is US$4.72, and for new common shares, it is US$0.472.

When does the subscription period for Cresud's rights offering expire?

The subscription period for ADSs expires on March 2, 2021, and for common shares, on March 5, 2021.

What is the exercise price of the warrants issued in Cresud's offering?

The exercise price of the warrants is US$0.566.

Can Cresud cancel the rights offering?

Yes, Cresud may cancel the offering at its discretion, which would nullify all rights.

What happens if Cresud cancels the offering?

If the offering is canceled, all rights will expire without value, and Cresud will refund all funds received.