Clarivate Announces Conversion Date and Conversion Rate for Series A Mandatory Convertible Preferred Shares

Rhea-AI Summary

Clarivate announced the automatic conversion of its 5.25% Series A Mandatory Convertible Preferred Shares into ordinary shares on June 3, 2024. Shareholders will receive 3.8462 ordinary shares per Preferred Share, with cash paid for fractional shares. A final quarterly cash dividend of $1.3125 per Preferred Share will be distributed to holders of record as of May 15, 2024. This move aligns with Clarivate's strategy to simplify its capital structure.

Positive

• Mandatory conversion simplifies Clarivate's capital structure, potentially enhancing stock market perception.
• Shareholders will receive final quarterly cash dividend of $1.3125 per Preferred Share, providing immediate income.
• Conversion of Preferred Shares to ordinary shares might increase liquidity in the Clarivate stock market.

Negative

• Conversion may lead to dilution of existing ordinary shares, potentially reducing share value.
• Automatic conversion rate fixed at 3.8462 may not fully compensate for investors' initial investment, leading to possible discontent.
• The announcement may create market uncertainty affecting short-term stock price.

News Market Reaction – CLVT

+1.42%

1 alert

+1.42% News Effect

On the day this news was published, CLVT gained 1.42%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

LONDON, May 30, 2024 /PRNewswire/ -- Clarivate Plc (NYSE: CLVT; CLVT PR A) ("Clarivate"), a leading global provider of transformative intelligence, announced today that its 5.25% Series A Mandatory Convertible Preferred Shares (the "Preferred Shares"), will automatically and mandatorily convert into ordinary shares of Clarivate on June 3, 2024 (the "Conversion Date"). The mandatory conversion rate for each Preferred Share will be 3.8462 ordinary shares of Clarivate. Cash will be paid in lieu of fractional ordinary shares.

As previously announced on May 1, 2024, holders of record at the close of business on May 15, 2024 will separately receive a final quarterly cash dividend of $1.3125 per Preferred Share on June 3, 2024.

Cautionary Note Regarding Forward-Looking Statements

This communication contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These statements, which express management's current views concerning future business, events, trends, contingencies, financial performance, or financial condition, appear at various places in this communication and may use words like "aim," "anticipate," "assume," "believe," "continue," "could," "estimate," "expect," "forecast," "future," "goal," "intend," "likely," "may," "might," "plan," "potential," "predict," "project," "see," "seek," "should," "strategy," "strive," "target," "will," and "would" and similar expressions, and variations or negatives of these words. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on management's current beliefs, expectations, and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy, and other future conditions. These forward-looking statements involve a number of risks and uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include those factors discussed under the caption "Risk Factors" in our annual report on Form 10-K, along with our other filings with the U.S. Securities and Exchange Commission ("SEC"). However, those factors should not be considered to be a complete statement of all potential risks and uncertainties. Additional risks and uncertainties not known to us or that we currently deem immaterial may also adversely affect our business operations. Forward-looking statements are based only on information currently available to our management and speak only as of the date of this communication. We do not assume any obligation to publicly provide revisions or updates to any forward-looking statements, whether as a result of new information, future developments or otherwise, except as otherwise required by securities and other applicable laws. Please consult our public filings with the SEC or on our website at www.clarivate.com.

About Clarivate

Clarivate™ is a leading global provider of transformative intelligence. We offer enriched data, insights & analytics, workflow solutions and expert services in the areas of Academia & Government, Intellectual Property and Life Sciences & Healthcare. For more information, please visit www.clarivate.com.

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SOURCE Clarivate Plc

FAQ

What is the conversion date for Clarivate's Series A Mandatory Convertible Preferred Shares?

The conversion date is June 3, 2024.

What is the conversion rate for Clarivate's Series A Mandatory Convertible Preferred Shares?

Each Preferred Share will convert into 3.8462 ordinary shares of Clarivate.

When will holders of Clarivate's Series A Mandatory Convertible Preferred Shares receive the final quarterly cash dividend?

The final quarterly cash dividend will be paid on June 3, 2024.

How much is the final quarterly cash dividend for Clarivate's Series A Mandatory Convertible Preferred Shares?

The final quarterly cash dividend is $1.3125 per Preferred Share.

What happens to fractional shares resulting from the conversion of Clarivate's Series A Preferred Shares?

Cash will be paid in lieu of fractional ordinary shares.