Prenetics Enters Into Warrant Exchange Agreements With Warrant Holders, Strengthening Capital Structure

Core Viewpoint - Prenetics Global Limited has initiated a warrant exchange program to simplify its capital structure and reduce potential future dilution, with approximately 83.4% of outstanding Class A and Class B warrants participating in the exchange [1][2][3] Warrant Exchange Program - The program was developed based on feedback from institutional shareholders who supported consolidating legacy warrants into a cleaner structure [2] - The exchange agreements cover 4,539,722 of the 5,445,284 total Class A and Class B warrants, representing approximately 83.4% participation [3] Summary of the Warrant Exchange - The Company can exercise its forced-redemption right only after the registration statement for Class C warrants is effective and if Class A shares trade at or above $21.60 for ten consecutive trading days [4] - All eligible warrant holders were offered identical terms for participation in the exchange [5] Impact on Capital Structure - Approximately 4.54 million Class A and Class B warrants are expected to be exchanged for about 2.27 million Class C warrants [6] - Post-exchange, the total number of outstanding warrants is expected to be around 3.18 million, a reduction of approximately 42.0% from the original issuance in October 2025, with potential for up to 50% reduction if all holders participate [7] Strategic Rationale and Benefits - The exchange offers several benefits, including the consolidation of two legacy warrant classes into one Class C warrant with a lower exercise price of $18.00 and a two-year term [9] - Participation from the largest institutional investors indicates strong confidence in the revised structure and its long-term benefits [10] Company Overview - Prenetics is a leading health sciences company focused on health and longevity, with its IM8 brand achieving over $100 million in annual recurring revenue within 11 months of launch [11] - IM8 combines advanced science with natural ingredients to provide a holistic approach to health, featuring products like Daily Ultimate Essentials [12]