St. Louis-based food company Benson Hill, Inc. (NASDAQ:BHIL) disclosed today that it is continuing to evaluate strategic alternatives, including a potential sale of the company. This follows a preliminary indication of interest received on June 25, 2024, from Argonautic Ventures Master SPC and other co-investors to purchase all outstanding shares of Benson Hill not already owned by them.
The board of directors at Benson Hill has formed a special committee to review these alternatives. On August 8, 2024, the committee executed a non-binding letter of intent with Argonautic, outlining the terms of a possible acquisition. The indicated offer price is $8.60 per share in cash, reflecting a 34% premium over the closing price as of the day before the letter's execution.
This proposed transaction is subject to various conditions, including satisfactory completion of due diligence, securing suitable financing, and a majority of the outstanding shares not owned by the Rollover Stockholders being validly tendered.
In other recent news, seed innovation firm, Benson Hill, Inc. has undertaken a strategic measure by executing a reverse stock split at a 1-for-35 ratio. This move, ratified by shareholders, is designed to comply with the New York Stock Exchange's minimum price criteria. As a result, the total number of outstanding shares will be reduced from approximately 213 million to around 6 million, while the relative voting power of stockholders and the company's business operations remain unchanged.
Furthermore, shareholders will not receive fractional shares but will be compensated in cash for the fractional share value. The number of shares issuable upon exercise or vesting of outstanding equity awards, options, and warrants will also be adjusted equitably.
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