Abacus Life, Inc. announced on February 24, 2025, that it has entered into warrant exchange agreements with certain holders of its outstanding publicly traded warrants. These holders agreed to surrender an aggregate of 4,930,745 Public Warrants. In exchange, they will receive an aggregate of 1,134,071 shares of newly issued Common Stock, representing a ratio of 0.23 shares per warrant.
The Public Warrants were issued in connection with the company’s initial public offering and entitle holders to purchase up to 17,250,000 shares of Common Stock at an exercise price of $11.50 per share. This private exchange is a step towards optimizing the company's capital structure.
This transaction is significant as it reduces the number of outstanding warrants, thereby decreasing potential future dilution for existing shareholders. It also simplifies the company's capital structure, providing more clarity for investors regarding its equity base.
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