BUENOS AIRES – Cresud Inc. (NASDAQ: CRESY, BYMA:CRES), a prominent real estate firm, announced today that it has issued additional shares following the exercise of warrants by certain holders. The transaction took place between September 17 and September 25, 2024, resulting in the registration of 2,283,822 ordinary shares with a face value of ARS 1 each.
The company collected USD 982,729 from the warrant exercises. Post transaction, Cresud's total number of shares increased from 596,355,320 to 598,639,142, while the outstanding warrants decreased from 85,998,622 to 84,261,280.
The exercised warrants were converted at a current ratio of 1.3146 ordinary shares per warrant, with an exercise price of USD 0.4303 per share. This conversion resulted in the issuance of shares that also included rounding adjustments for each exercise instruction.
After the completion of the warrant exercises, the total outstanding ordinary shares of Cresud now stand at 598,639,142. If all outstanding warrants were to be exercised, the company's fully diluted share count would reach 709,409,020.
In other recent news, Argentine real estate company, Cresud Inc., has been making significant financial moves. The company completed the sale of a portion of its "Los Pozos" property, a 3,630-hectare section of their farm located in Salta Province, Argentina, for a total of $2.23 million, with the remaining payment secured by a mortgage on the property to be paid in September 2025. The profit from this sale will be reflected in Cresud's financial statements for the first quarter of fiscal year 2025.
In addition, Cresud has successfully issued Series XLVI notes in the local capital markets, raising an equivalent of USD 28.6 million, with semiannual interest payments starting from January 18, 2025. This move aligns with Cresud's ongoing efforts to strengthen its capital structure and diversify its financing sources.
Cresud has also announced an upcoming virtual General Ordinary and Extraordinary Shareholders' Meeting. The meeting agenda includes the approval of financial statements, allocation of a substantial net income of approximately 70.8 billion Argentine pesos, and the distribution of dividends. The company has also proposed the reallocation of existing voluntary reserves and delegated the application and disposition of these funds to the board of directors.
InvestingPro Insights
Cresud's recent warrant exercise aligns with its strong financial position and market performance. According to InvestingPro data, the company boasts a market capitalization of $669.94 million USD and has demonstrated impressive profitability with a gross profit margin of 41.01% in the last twelve months as of Q4 2024. This financial strength is further underscored by Cresud's attractive dividend yield of 8.25%, making it an appealing option for income-focused investors.
InvestingPro Tips highlight Cresud's status as a prominent player in the Food Products industry, which complements its real estate operations. The company's high return over the last year, with a one-year price total return of 48.84%, indicates strong market performance and investor confidence. Additionally, Cresud is trading at a low earnings multiple, with a P/E ratio (Adjusted) of 2.23 for the last twelve months as of Q4 2024, suggesting potential undervaluation.
For investors seeking more comprehensive analysis, InvestingPro offers 7 additional tips for Cresud, providing deeper insights into the company's financial health and market position.
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