Buenos Aires-based Cresud (BCBA:CRESm) Inc (NASDAQ:CRESY, BYMA:CRES), a prominent player in the real estate sector with a market capitalization of $871 million, has announced the successful exercise of warrants by holders, leading to an increase in its capital stock. The company has shown remarkable momentum, with its stock surging over 71% in the past six months. InvestingPro data indicates the stock is currently trading near overbought levels, with 8 more key insights available to subscribers. Between November 17 and November 25, 2024, warrant holders opted to purchase additional shares, resulting in the registration of 4,501,293 ordinary shares at a face value of ARS 1 each.
The company confirmed the collection of USD 1,809,070 from this transaction. Following the exercise, Cresud's total number of shares and capital stock has risen from 598,639,142 to 603,140,435. Concurrently, the outstanding warrants have decreased from 84,261,280 to 81,063,170. Notable for investors, the company maintains a healthy dividend yield of 7.11% and has achieved a "GOOD" financial health score according to InvestingPro analysis.
The exercise price per ordinary share was set at USD 0.4019, with a current ratio of 1.4075 ordinary shares for each warrant. After the exercise, the number of outstanding shares of Cresud stands at 603,140,435. If all outstanding warrants were to be exercised, the fully diluted share count would reach 717,236,846.
This financial maneuver is part of Cresud's ongoing financial activities, as the company continues to navigate the real estate market. With a year-to-date return of 54.7% and a beta of 1.09, the stock has demonstrated strong market performance.
In other recent news, Cresud Inc. has made significant progress in its share repurchase program, acquiring a substantial number of common shares. This initiative is part of a broader strategy to manage its capital allocation efficiently. The company has also successfully issued Series XLVII notes in the local Argentine capital market, raising $64.4 million.
In addition, Cresud has made changes to the terms of its outstanding warrants, increasing the number of shares that can be acquired per warrant and reducing the exercise price per share. Furthermore, the company's shareholders approved financial documents for the fiscal year ending June 30, 2024, agreeing on a net income allocation of approximately 70.8 billion Argentine pesos.
Cresud also sold a portion of its "Los Pozos" property in Salta Province, Argentina, for a total of $2.23 million. To strengthen its capital structure, the company issued Series XLVI notes, raising an equivalent of USD 28.6 million.
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