Jet.AI Announces Amendments To Its Warrant Agreements On August 21, 2024, Following An Exchange Offer And Consent Solicitation, Resulting In The Mandatory Exchange Of Outstanding Warrants For Shares Of Common Stock At A Reduced Rate, Leading To An Anticipated Issuance Of ~2.4M Shares On September 9, 2024, And A Total Increase In Outstanding Shares To ~27.1M, With All Warrants To Be Delisted Post-Exchange
Portfolio Pulse from Benzinga Newsdesk
Jet.AI Inc. (NASDAQ:JTAI) announced amendments to its warrant agreements, leading to a mandatory exchange of outstanding warrants for shares of common stock at a reduced rate. This will result in the issuance of approximately 2.4 million shares, increasing the total outstanding shares to about 27.1 million. All warrants will be delisted post-exchange.
August 23, 2024 | 12:17 pm
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Jet.AI's amendments to its warrant agreements will result in a mandatory exchange of warrants for shares, increasing the total outstanding shares significantly. This could dilute existing shareholders' value but also simplifies the capital structure by eliminating warrants.
The mandatory exchange of warrants for shares increases the total number of outstanding shares, which can lead to dilution of existing shareholders' value. The delisting of warrants simplifies the capital structure but may not offset the potential negative impact of dilution on the stock price.
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