Heliogen takes defensive stance against Continuum Renewables
- The board of directors of Heliogen Inc (NYSE: HLGN) today announced its adoption of a limited duration stockholder rights strategy, likewise called a "poison pill", in response to the unsolicited requisition proposal made by Continuum Renewables Inc (CRI) recently.
In a press statement, the target company stated that this move "will minimize the likelihood that any entity, individual or group gains control of Heliogen through free market build-up without paying all stockholders a suitable control premium or without supplying the Board sufficient time to make educated judgments as well as take actions that remain in the very best rate of interests of all stockholders."
As part of this defensive system, Heliogen's existing investors will get a reward of one right for every exceptional share of the firm's common stock since the close of company on April 28, 2023. Each right will certainly entitle its owner to acquire, for USD 3.50 (EUR 3.20), added shares of the business's ordinary shares having a market price of twice such workout rate. These rights will only end up being exercisable if a person or group acquires beneficial ownership of 12.5% or even more of the business's superior ordinary shares.
The rights strategy ends up being effective immediately and will end on April 17, 2024, unless the rights are previously redeemed by the firm.
As previously announced, Continuum Renewables made a non-binding proposal to acquire the company for USD 0.40 apiece. Heliogen noted that its suitor is regulated by entities that directly or indirectly own some 26% of the company's impressive shares of common stock.
Heliogen is a renewable energy innovation firm being experts in AI-powered focusing solar power and also thermal storage space systems.
