In Florida, Dyadic International announced the closing of the previously announced sale of substantially all of the assets of its Industrial Technology business to DuPont’s Industrial Biosciences business for $75 million in cash. As previously announced, following the closing, Dyadic intends to focus exclusively on its biopharmaceutical business.
In connection with the closing of the Transaction, all of Dyadic’s outstanding debt has been paid off or converted into shares of Dyadic’s common stock. A total of $8.11 million in convertible debt was exchanged for 6.12 million shares of Dyadic’s common stock and 1.05 million warrants with a $1.48 per share strike price with a December 31, 2016 expiration date. A total of $0.56 million in cash and 0.10 million warrants with a $1.48 per share strike price with a December 31, 2016 expiration date was paid/issued to convertible debt holders who elected not to convert. In addition, the outstanding non-convertible note was paid off with $1.46 million in cash.
As a result of the conversion of debt into shares of Dyadic’s common stock a total of 6.12 million shares of Dyadic common stock will be issued upon the closing of the Transaction. This represents 17.9% of the shares of the Company’s outstanding common stock as of December 31, 2015. Also in connection with the above debt conversion, Dyadic’s CEO, Mark Emalfarb fully converted $1.0 million in debt for 0.69 million shares at a $1.48 per share price and the Francisco Trust, a trust for the benefit of his family, fully converted $0.5 million in debt for 0.40 million shares at a $1.28 per share price. The beneficial ownership of Dyadic common stock held by Dyadic’s CEO, Mark Emalfarb and the Francisco Trust decreased from 12.2% to 11.1% and from 12.7% to 11.1%, respectively.
The remainder of the net proceeds from the Transaction will be used to fund the previously announced stock repurchase program, ongoing professional liability litigation, the ongoing biopharmaceutical business and for general corporate purposes. Dyadic will continue to trade on the OTCQX exchange as DYAI.
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This articles was originally posted at: http://www.biofuelsdigest.com/bdigest/2016/01/03/duponts-75m-acquisition-of-dyadics-industrial-biotechnology-business-closes/ on