Business
Alvotech Receives Conversion Notices for Majority of Convertible Bonds
Alvotech (NASDAQ: ALVO), a global biotech company specializing in the development and manufacture of biosimilar medicines for patients worldwide, today
About this update from Alvotech
[{"type":"text","content":"Alvotech (NASDAQ: ALVO), a global biotech company specializing in the development and manufacture of biosimilar medicines for patients worldwide, today announced that holders of the majority of subordinated convertible bonds, originally issued by Alvotech on November 16, 2022, and December 20, 2022, respectively, with maturity on December 20, 2025 (the “Convertible Bonds”) have elected to convert the principal and accrued interest into ordinary shares of Alvotech at the fixed conversion price of US$10.00 per share on the last scheduled conversion date prior to maturity, which is July 1, 2024 (the “Conversion Date”). On the Conversion Date, Alvotech will issue new shares to the holders that have exercised their right to convert their Convertible Bonds. The total number of new shares that will be issued and delivered will depend on the prevailing exchange rate of the Icelandic krona against the U.S. dollar on June 27, 2024. Based on the current exchange rate, Alvotech estimates that approximately 22.1 million new shares will be issued. Pursuant to terms of the Convertible Bonds, the newly issued shares shall be delivered no later than seven business days after the Conversion Date. The Convertible Bonds were issued in two tranches, denominated in Icelandic krona (ISK) and U.S. Dollars (USD), respectively. The ISK denominated Convertible Bonds are listed on the Nasdaq First North growth market in Iceland under the symbol ALVCVB251220. All holders of the ISK denominated Convertible Bonds (“Tranche A Bonds”) exercised their right to conversion. The aggregate value of these bonds, with accrued interest, is ISK 25,483,970,823 (USD 183,127,126 at the current exchange rate), which will be converted into ordinary shares at the conversion price of USD 10.00 per share, at the exchange rate published by the Central Bank of Iceland on June 27, 2024. Based on current exchange rates, Alvotech estimates that approximately 18.3 million new shares will be issued to holders of Tranche A Bonds. Holders of USD denominated Convertible Bonds for a value, with accrued interest, of USD 37,981,167 as of the Conversion Date, have exercised their right to conversion and will be issued 3,798,117 new shares on the Conversion Date. Holders of USD denominated Convertible Bonds for an aggregate value, with accrued interest, of USD 116,677,563 as of the Conversion...