Company: PGEN
Filing Date: 2025-05-06
Form Type: PRE 14A
Source: 0001140361-25-017535
Chunk: 38

Company: PRECIGEN, INC.
Filing Date: 2025-05-06
Form: PRE 14A
Chunk 38
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 broker, or other nominee may vote your shares “for” the proposal without receiving your voting instructions. Abstentions will count against the proposal. THE BOARD UNANIMOUSLY RECOMMENDS THAT SHAREHOLDERS VOTE “FOR” THE AMENDMENT TO THE COMPANY’S AMENDED AND RESTATED ARTICLES OF INCORPORATION TO INCREASE AUTHORIZED SHARES OF COMMON STOCK. 28 TABLE OF CONTENTS PROPOSAL 3 APPROVAL, IN COMPLIANCE WITH NASDAQ LISTING RULE 5635(C), OF THE ISSUANCE OF THE COMPANY’S SHARES OF SERIES A PREFERRED STOCK AND WARRANTS TO RANDAL J. KIRK AS PIK DIVIDENDS ON THE SERIES A PREFERRED STOCK, IN ORDER FOR MR. KIRK TO RECEIVE PIK DIVIDENDS ON THE SERIES A PREFERRED STOCK ON THE SAME TERMS AS THE OTHER INVESTORS Background As explained above in connection with Proposal 2, we entered into a Securities Purchase Agreement dated December 27, 2024 with investors, including Randal J. Kirk, the executive chairman of our Board, for the sale of 79,000 shares of our Series A Preferred Stock and Warrants to purchase 52,666,669 shares of Common Stock at a per share exercise price of $0.75 per share in the Private Placement for net proceeds of approximately $78.5 million. A portion of the net proceeds received from the Private Placement has been used for working capital and general corporate purposes, and we anticipate that the remaining net proceeds will be used for working capital and general corporate purposes. Mr. Kirk purchased 25,000 shares of our Series A Preferred Stock and Warrants to purchase 16,666,667 shares of Common Stock in the Private Placement, each at a price per share equal to the then-current fair market value of a share of Common Stock. The Series A Preferred Stock is initially convertible into shares of Common Stock at the Initial Conversion Rate of 888.8888 shares of Common Stock per $1,000 of stated value, for an initial conversion price of approximately $1.125 per share, and there were initially approximately 70,222,215 shares of Common Stock underlying the Series A Preferred Stock. The Initial Conversion Rate is subject to downward adjustment in certain circumstances, and the Initial Conversion Rate and the Exercise Price are also subject to customary anti-dilution adjustments. Dividends on the Series A Preferred Stock will be paid annually in cash when, as and if declared by the