LONDON - Crystal Amber Fund (AIM: CRS) has announced the conversion of its convertible loan notes in Morphic Medical (TASE:PMCN) Inc. into common shares, following the approval of the Morphic Board. The conversion encompasses the Fund's entire interest, amounting to $25.4 million in principal and $3.0 million in accrued interest, into 194,358,367 common shares of Morphic Medical.
The conversion of the notes was executed at share values ranging from $0.088 to $0.48, with an average weighted conversion price of $0.146 per share. This strategic move follows a prior announcement made on December 3, 2024, and is subject to the approval of Morphic shareholders and amendments to Morphic's Articles of Incorporation.
Prior to the conversion, Crystal Amber Fund owned 95.3 percent of the issued share capital of Morphic. Post-conversion, the Fund's ownership will increase to approximately 97.6 percent of the total share capital, which includes both common and preference shares, thereby solidifying its position as the dominant shareholder.
The issuance of the new common shares is pending necessary shareholder approvals and the amendment of Morphic's governing documents. Crystal Amber Fund is expected to make an additional announcement once these formalities are completed and the new shares are officially issued.
This financial maneuver is based on a press release statement and further details will be disclosed following the completion of the necessary corporate actions. The conversion represents a significant change in the ownership structure of Morphic Medical, potentially impacting the company's governance and future strategy.
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