Roivant (ROIV) Announces Fair Market Value for Warrant Redemption

Roivant (ROIV) Announces Fair Market Value for Warrant Redemption

Roivant (Nasdaq: ROIV), which completed its combination with Montes Archimedes in September 2021, announced this afternoon the fair market value in connection to redeeming its outstanding public and private warrants for $0.10 per warrant.

Holders may exercise the warrants until 5:00 p.m. EST on September 1, for an exercise price of $11.50 per share, payable in cash. But, if the holders decide to exercise their warrants on a cashless basis prior to the redemption date, then they will receive approximately 0.2495 common shares per warrant based on the fair market value of $11.35.

Following September 1, the warrants (NASDAQ:ROIVW) will cease trading and any that remain unexercised will be delisted and void.

The SPAC originally announced the redemption of all outstanding warrants on August 2. Under the terms of the warrant agreement, Roivant is entitled to redeem the warrants if the last reported sales price of the common shares is at least $10 per share for any 20 trading days within the 30 trading-day period ending on the third trading day prior to the date when a notice is given. And, if the reference value is less than $18 per share, the outstanding private placement warrants are also concurrently called for redemption on the same terms as the outstanding public warrants. This share price performance requirement was satisfied on July 28.

Montes Archimedes announced its $5 billion combination with Roivant in May 2021 and the parties completed the deal months later in September 2021. Basel, Switzerland-based Roivant develops an array of drug candidates acquired from peers or internally developed with its enhanced computing platform.