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Oatly Group AB (NASDAQ:OTLY) shares slipped on Tuesday after disclosing plans to boost capital and amend shareholder agreements.
In an SEC submitting, the Swedish dairy various firm introduced intentions to name a rare basic assembly of shareholders. At this assembly, shareholders will think about a proposal to extend the boundaries within the variety of shares “to extend the room for issuance of extra shares with out the necessity for additional shareholder approval.”
The secondary proposal regards a capital increase consistent with the implications of the preliminary movement. The proposal seeks authorization to boost as much as $300M within the type of shares, warrants exercisable for shares or bonds convertible into shares with out first providing these securities to present shareholders. The board indicated that the brand new pointers will present the corporate with “a wider vary of approaches to boost capital.”
Shares of Oatly Group (OTLY) fell 4.94% close to the midpoint of Tuesday’s buying and selling day.
Regardless of the antagonistic inventory response after the announcement, Piper Sandler analyst Michael Lavery applauded the plan.
“OTLY has known as a rare basic assembly of shareholders to advance its
capital increase choices, which we think about a constructive (and purely administrative) step towards eradicating its capital increase overhang,” he informed shoppers. “The EGM (set for March 6) is the executive step that was all the time essential to take away the capital increase overhang. We additionally consider permitting extra funding above its $200M publicly acknowledged wants can be constructive.”
As such, he maintained a Purchase-equivalent ranking on the inventory and a $4 worth goal.
Learn extra on Mizuho’s latest improve of Oatly.
