- Wednesday, October 16, 2024
Allego, a company that specializes in electric vehicle charging solutions, saw its shares decline by 25% to $1.61 following the initiation of an exchange offer and consent solicitation regarding its outstanding warrants for the purchase of its ordinary shares.
During the session, the stock plummeted even further to hit its 52-week low of $1.60, marking a significant drop of 63% over the past year.
These warrants were initially assumed by Allego as part of its business combination with Spartan Acquisition Corp. III on March 16, 2022.
Allego's primary aim with this offer and consent solicitation is to streamline its capital structure while minimizing the potential dilutive impact caused by the warrants. By doing so, the company aims to enhance its financial flexibility for future operations and financing needs.
As part of the exchange offer, Allego is extending an opportunity to all warrant holders to receive 0.23 shares in exchange for each tendered warrant. The company is prepared to offer up to 3.2 million shares in total as part of this arrangement.
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