Perimeter Solutions Announces Warrant Instrument Amendment to Permit Holders of Warrants that Expire on November 11, 2024, to Exercise Both on a Cash and Cashless Basis
Perimeter Solutions (NYSE: PRM) announced an amendment to its warrant instrument, allowing holders of warrants expiring on November 11, 2024, to exercise them on both a cash and cashless basis. This change is expected to take effect around October 3, 2024. The cashless exercise option enables warrant holders to capture the value difference between the current price of Perimeter's Ordinary Shares and the warrant exercise price without providing cash.
Under the cashless exercise, warrant holders will receive Ordinary Shares equal in value to the volume weighted average price of one Ordinary Share at the time of exercise, less the warrant exercise price, multiplied by the number of warrants being exercised. This amendment aims to provide flexibility to warrant holders while maintaining all other terms of the warrants. Perimeter Solutions will file a supplement to the warrant instrument with the SEC on Form 8-K, detailing the calculation method for cashless exercises.
Perimeter Solutions (NYSE: PRM) ha annunciato una modifica del suo strumento di warrant, consentendo ai titolari di warrant in scadenza l'11 novembre 2024 di esercitarli sia su base cash che cashless. Questa modifica dovrebbe entrare in vigore intorno al 3 ottobre 2024. L'opzione di esercizio cashless consente ai titolari di warrant di catturare la differenza di valore tra il prezzo attuale delle azioni ordinarie di Perimeter e il prezzo di esercizio del warrant senza dover fornire denaro contante.
Con l'esercizio cashless, i titolari di warrant riceveranno azioni ordinarie equivalenti in valore alla media ponderata per volume di un'azione ordinaria al momento dell'esercizio, meno il prezzo di esercizio del warrant, moltiplicato per il numero di warrant esercitati. Questa modifica mira a fornire flessibilità ai titolari di warrant mantenendo tutte le altre condizioni dei warrant. Perimeter Solutions presenterà un supplemento allo strumento di warrant presso la SEC con il modulo 8-K, dettagliando il metodo di calcolo per gli esercizi cashless.
Perimeter Solutions (NYSE: PRM) anunció una modificación a su instrumento de warrants, permitiendo a los tenedores de warrants que expiran el 11 de noviembre de 2024 ejercerlos tanto en una base en efectivo como sin efectivo. Se espera que este cambio entre en vigencia alrededor del 3 de octubre de 2024. La opción de ejercicio sin efectivo permite a los tenedores de warrants captar la diferencia de valor entre el precio actual de las acciones ordinarias de Perimeter y el precio de ejercicio del warrant sin necesidad de proporcionar efectivo.
Bajo el ejercicio sin efectivo, los tenedores de warrants recibirán acciones ordinarias equivalentes en valor al promedio ponderado por volumen de una acción ordinaria en el momento del ejercicio, menos el precio de ejercicio del warrant, multiplicado por el número de warrants que se ejercen. Esta modificación tiene como objetivo proporcionar flexibilidad a los tenedores de warrants mientras se mantienen todos los otros términos de los warrants. Perimeter Solutions presentará un suplemento al instrumento de warrants a la SEC en el formulario 8-K, detallando el método de cálculo para los ejercicios sin efectivo.
Perimeter Solutions (NYSE: PRM)는 2024년 11월 11일에 만료되는 워런트 보유자가 현금 및 무현금 방식으로 워런트를 행사할 수 있도록 하는 수정안을 발표하였습니다. 이 변경 사항은 2024년 10월 3일경에 시행될 예정입니다. 무현금 행사 옵션은 워런트 보유자가 Perimeter의 보통주 현재 가격과 워런트 행사 가격 사이의 가치 차이를 현금을 제공하지 않고도 포착할 수 있도록 합니다.
무현금 행사에 따라 워런트 보유자는 행사 시점의 보통주 한 주의 거래량 가중 평균 가격에 해당하는 가치를 가지는 보통주를 받고, 이는 워런트 행사 가격을 뺀 후 행사되는 워런트 수에 곱해집니다. 이 수정안은 워런트 보유자에게 유연성을 제공하는 동시에 워런트의 다른 모든 조건을 유지하는 것을 목표로 합니다. Perimeter Solutions는 SEC에 대해 8-K 형식의 워런트 보증서 보충서를 제출하여 무현금 행사에 대한 계산 방법을 상세히 설명할 것입니다.
Perimeter Solutions (NYSE: PRM) a annoncé une modification de son instrument de warrants, permettant aux détenteurs de warrants expirant le 11 novembre 2024 de les exercer à la fois sur une base en espèces et sans espèces. Ce changement devrait entrer en vigueur vers le 3 octobre 2024. L'option d'exercice sans espèces permet aux détenteurs de warrants de capter la différence de valeur entre le prix actuel des actions ordinaires de Perimeter et le prix d'exercice du warrant sans fournir de liquidités.
Dans le cadre de l'exercice sans espèces, les détenteurs de warrants recevront des actions ordinaires d'une valeur équivalente à la moyenne pondérée par le volume d'une action ordinaire au moment de l'exercice, moins le prix d'exercice du warrant, multiplié par le nombre de warrants exercés. Cette modification vise à offrir une flexibilité aux détenteurs de warrants tout en maintenant toutes les autres conditions des warrants. Perimeter Solutions déposera un supplément à l'instrument de warrant auprès de la SEC sur le formulaire 8-K, détaillant la méthode de calcul pour les exercices sans espèces.
Perimeter Solutions (NYSE: PRM) hat eine Änderung ihres Warrant-Instruments angekündigt, die es den Inhabern von Warrants, die am 11. November 2024 ablaufen, ermöglicht, diese sowohl in bar als auch ohne Barzahlung auszuüben. Diese Änderung wird voraussichtlich am 3. Oktober 2024 in Kraft treten. Die Option der barlosen Ausübung ermöglicht es den Warrant-Inhabern, die Wertdifferenz zwischen dem aktuellen Preis der Stammaktien von Perimeter und dem Warrant-Ausübungspreis zu erfassen, ohne Bargeld bereitzustellen.
Bei der barlosen Ausübung erhalten die Warrant-Inhaber Stammaktien, die in ihrem Wert dem volumenweighted Durchschnittspreis einer Stammaktie zum Zeitpunkt der Ausübung entsprechen, abzüglich des Warrant-Ausübungspreises, multipliziert mit der Anzahl der ausgeübten Warrants. Diese Änderung zielt darauf ab, den Warrant-Inhabern Flexibilität zu bieten, während alle anderen Bedingungen der Warrants beibehalten werden. Perimeter Solutions wird ein Ergänzung zu dem Warrant-Instrument bei der SEC in Form 8-K einreichen, in dem die Berechnungsmethode für die barlosen Ausübungen detailliert beschrieben wird.
- Increased flexibility for warrant holders with the addition of a cashless exercise option
- Potential for increased warrant exercises, which could lead to improved capital structure
- Potential dilution of existing shareholders if a significant number of warrants are exercised
Insights
This amendment to the warrant instrument is a strategic move by Perimeter Solutions, offering flexibility to warrant holders. The introduction of a cashless exercise option alongside the existing cash exercise could potentially increase the likelihood of warrant conversions before their expiration on November 11, 2024. This is particularly relevant given the current market conditions and the company's stock price.
The cashless exercise option allows warrant holders to capture the intrinsic value of their warrants without the need for upfront capital, which could be attractive in a volatile market. For Perimeter, this could lead to a reduction in the number of outstanding warrants without immediate cash inflow, potentially simplifying the company's capital structure.
However, the impact on Perimeter's balance sheet and share dilution will depend on the number of warrant holders who choose to exercise and the method they select. While cashless exercises won't bring in new capital, they could reduce the overhang effect of outstanding warrants on the stock price. Investors should monitor the rate of warrant exercises and any resulting changes in the company's outstanding shares in the coming months.
The amendment to the warrant instrument represents a significant change in the terms of these securities, which requires careful legal consideration. By offering a cashless exercise option, Perimeter Solutions is modifying the original agreement with warrant holders, potentially affecting the rights and obligations of both parties.
From a legal standpoint, this move appears to be designed to comply with securities regulations while providing additional flexibility to warrant holders. The company's decision to file a supplement to the warrant instrument with the SEC on Form 8-K demonstrates transparency and adherence to disclosure requirements.
Investors should note that this amendment does not change the fundamental nature of the warrants or their expiration date. The legal implications primarily revolve around the method of exercise and potential impacts on share issuance. It's important for warrant holders to carefully review the supplement filing to understand the precise formula for cashless exercise and any potential tax implications that may arise from choosing this option over a cash exercise.
Clayton, Missouri--(Newsfile Corp. - September 30, 2024) - Perimeter Solutions, SA (NYSE: PRM) ("Perimeter" or the "Company"), a leading provider of mission-critical firefighting products and services, as well as high-quality phosphorus-based specialty chemicals, today announced that the Company will permit holders of all outstanding warrants of the Company ("Warrants") issued to investors in connection with its initial public offering (the "Warrant holders") to exercise their Warrants on a cashless exercise basis beginning, it expects, on or around October 3, 2024. Warrant holders may continue to exercise their Warrants on a cash basis. No other terms of the Warrants are being amended. The Warrants expire on November 11, 2024.
The cashless exercise right being offered to Warrant holders allows them to capture the value between the current price of Perimeter's Ordinary Shares and the exercise price of the Warrants without the need to provide cash on exercise.
Cashless exercise would enable Warrant holders to exercise their Warrants without paying cash but rather paying the exercise price from the value of the Ordinary Shares that would otherwise be issued to the Warrant holder were the Warrants exercised on a cash basis. The Warrant holders exercising on a cashless basis would receive a number of Ordinary Shares equal in value to the volume weighted average price of one Ordinary Share at the time of exercise (calculated according to a formula set forth in the supplement to the warrant instrument) less the exercise price of the Warrants multiplied by the number of Warrants being exercised. A description of the manner for determining the number of shares issuable to a Warrant holder that exercises its Warrants on a cashless basis is contained in the supplement to the warrant instrument to be filed with the Securities and Exchange Commission on Form 8-K.
About Perimeter Solutions
Perimeter Solutions is a leading global solutions provider, providing high-quality firefighting products and phosphorus-based specialty chemicals. The Company's business is organized and managed in two reporting segments: Fire Safety and Specialty Products.
The Fire Safety business consists of formulating, manufacture and sale of fire retardants and firefighting foams that assist in combating various types of fires, including wildland, structural, flammable liquids and others. Our Fire Safety business also offers specialized equipment and services, typically in conjunction with our fire management products, to support our customers' firefighting operations. Our specialized equipment includes airbase retardant storage, mixing, and delivery equipment; mobile retardant bases; retardant ground application units; mobile foam equipment; and equipment that we custom design and manufacture to meet specific customer needs. Our service network can meet the emergency resupply needs of over 150 air tanker bases in North America, as well as many other customer locations in North America and internationally. The segment is built on the premise of superior technology, exceptional responsiveness to our customers' needs, and a "never-fail" service network. The segment sells products to government agencies and commercial customers around the world.
The Specialty Products business produces and sells high quality Phosphorus Pentasulfide ("P2S5") primarily used in the preparation of lubricant additives, including a family of compounds called Zinc Dialkyldithiophosphates ("ZDDP") that provide critical anti-wear protection to engine components. P2S5 is also used in pesticide and mining chemicals applications.
Forward-Looking Information
This press release may contain "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Forward-looking statements can be identified by words such as: "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will," and similar references to future periods including expectations regarding when the Warrants may be exercised on a cashless exercise basis. Any such forward-looking statements are not guarantees of performance or results, and involve risks, uncertainties (some of which are beyond the Company's control) and assumptions. Although Perimeter believes any forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect Perimeter's actual financial results and cause them to differ materially from those anticipated in any forward-looking statements, including the risk factors described from time to time by us in our filings with the Securities and Exchange Commission ("SEC"), including, but not limited to, the Company's Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 22, 2024. Shareholders, potential investors and other readers should consider these factors carefully in evaluating the forward-looking statements.
Any forward-looking statement made by Perimeter in this press release speaks only as of the date on which it is made. Perimeter undertakes no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
SOURCE: Perimeter Solutions, SA.
CONTACT: ir@perimeter-solutions.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/225101
FAQ
When will Perimeter Solutions PRM allow cashless exercise of warrants?
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How will the number of shares be determined in a cashless exercise for Perimeter Solutions PRM warrants?
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