Origin Agritech to Sell Former Office Space, Converts $19M Debt into Joint Venture Equity
Portfolio Pulse from Benzinga Newsdesk
Origin Agritech Ltd. (NASDAQ:SEED) has completed an agreement with Beijing Changping Technology Innodevelop Group (BC-TID) to convert approximately $19 million in debt into equity in a joint venture. The transaction does not involve any aspects of Origin's seed business and technology, nor does it result in the issuance of any new shares of Origin Agritech Ltd.
September 06, 2023 | 10:52 am
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Origin Agritech's debt conversion into joint venture equity does not affect its seed business or share issuance. This could be seen as a positive move to reduce debt without diluting shareholder value.
The conversion of debt into equity in a joint venture is a strategic move that helps Origin Agritech reduce its debt burden without diluting its shares. This could be seen as a positive move by investors, potentially leading to a short-term increase in the stock price.
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