Alvotech Announces Increased The Company's Share Capital By An Amount Of $130K By Issuing 13M Ordinary Shares
Portfolio Pulse from Benzinga Newsdesk
Alvotech (NASDAQ:ALVO) increased its share capital by $130K through the issuance of 13M ordinary shares, subscribed by its subsidiary Alvotech Manco ehf. at $15.98 per share. These shares are considered treasury shares, with the subsidiary now holding 7.7% of issued shares. This move follows a sale of 10,127,132 ordinary shares to investors, aimed at maintaining sufficient shares for financial obligations.
March 22, 2024 | 8:24 pm
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Alvotech increased its share capital by $130K through issuing 13M shares to its subsidiary, aiming to maintain sufficient treasury shares for financial commitments.
The issuance of new shares by Alvotech is a strategic move to ensure the company has enough treasury shares to meet its financial obligations, including warrants and share-based employee compensation. This action is neutral to slightly positive in the short term as it demonstrates proactive financial management but also dilutes current shareholders. The impact on the stock price will depend on investor perception of the company's growth prospects and its ability to manage dilution effectively.
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