Company: PGEN
Filing Date: 2025-05-16
Form Type: DEF 14A
Source: 0001140361-25-019470
Chunk: 40

Company: PRECIGEN, INC.
Filing Date: 2025-05-16
Form: DEF 14A
Chunk 40
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 him may be subject to Nasdaq Rule 5635(c). Therefore, in order to ensure compliance with Nasdaq Rule 5635(c), we are asking our shareholders’ approval to pay the PIK Dividends to Mr. Kirk. If our shareholders approve this proposal and Proposal 2, we will be able to pay Mr. Kirk the PIK Dividends. Such PIK Dividends would be equivalent to the issuance to Mr. Kirk of 4,256 additional shares of Series A Preferred Stock and Warrants to purchase up to 2,837,334 additional shares of Common Stock. The rights and privileges of our other existing shareholders will not be affected, except that, upon any conversion of the Series A Preferred Stock owned by Mr. Kirk or any exercise of the Warrants owned by Mr. Kirk that occurs, 29 TABLE OF CONTENTS in each case, following the payment of the PIK Dividends to Mr. Kirk, although the number of shares of our Common Stock that our other existing shareholders own would not decrease, the shares of our Common Stock owned by our other existing shareholders would represent a smaller percentage of the total outstanding shares of our Common Stock than if such conversion or exercise had occurred without our having paid the PIK Dividends to Mr. Kirk. Accordingly, payment of the PIK Dividends to Mr. Kirk could result in dilution to the economic and voting interests of each of our other existing shareholders in excess of the dilution that would result upon conversion or exercise of the shares of Series A Preferred Stock or Warrants owned by Mr. Kirk if such PIK Dividends were not paid to him. If we do not obtain approval for this proposal, then under the terms of the Securities Purchase Agreement, we are obligated to continue to solicit the approval of our shareholders by calling a special meeting every 90 days following the date of the most recent such meeting. Vote Required and Board Recommendation The affirmative vote of a majority of the votes cast on the matter is required for the approval of this item. As this proposal is not considered a “routine item,” your bank, broker, or other nominee cannot vote your shares without receiving your voting instructions. Abstentions will not count either in favor of or against the proposal. WITH THE EXCEPTION OF MR. KIRK, WHO EXPRESSLY ABSTAINED FROM VOTING WITH RESPECT TO THIS PROPOSAL, THE BOARD UNANIMOUSLY RECOMMENDS THAT SHAREHOLDERS VOTE “FOR” THE APPROVAL,