Heliogen has rejected the unsolicited, non-binding proposal it received from Continuum Renewables to acquire all its outstanding shares of common stock for $0.40 per share, according to a news release.
“After careful consideration and consultation with legal and financial advisors, the Board concluded that the non-binding proposal substantially undervalues Heliogen,” the release states. “In fact, the proposal would result in an implied equity value for Heliogen common stockholders that is materially below Heliogen’s available liquidity.”
The company’s board concluded that the proposal is subject to material contingencies, including CRI obtaining financing, the release states
“The Board remains fully committed to Heliogen’s management team and its strategic priorities of increasing sales, installing commercial projects and improving the Company’s financial position,” Julie Kane, chair of the board, said in the release. “We strongly believe that our new leadership’s execution of this dynamic plan is the best way to drive sustainable long-term value creation for all stockholders and is a superior path compared to CRI’s opportunistic proposal.”
Late last year Heliogen received notice from the New York Stock Exchange that the average closing price of its common stock over the prior consecutive 30 trading-day period was below $1.00 per share, which is the minimum average share price for continued listing on the NYSE. The company’s stock was trading at $0.29 at close of business on Monday.
