WisdomTree Completes Repurchase of Non-Voting Preferred Shares Convertible into 13.1 Million Shares of WisdomTree Common Stock from a Subsidiary of the World Gold Council
20 Novembro 2023 - 6:05PM
Business Wire
Repurchase is 7% accretive to current 2024
consensus EPS estimates
WisdomTree, Inc. (NYSE: WT) (“WisdomTree” or the “Company”), a
global financial innovator, today announced the completion of the
repurchase of its non-voting preferred shares convertible into 13.1
million shares of WisdomTree common stock from Gold Bullion
Holdings (Jersey) Limited (“GBH”), a subsidiary of the World Gold
Council, for aggregate cash consideration of approximately $84.4
million, derived from a price per share (on an as-converted basis)
of $6.45. The preferred shares have been fully extinguished and the
transaction is approximately 7% accretive to current 2024 consensus
earnings per share (“EPS”) estimates.
WisdomTree Founder and CEO Jonathan Steinberg said, “This
repurchase eliminates potential future overhang while generating 7%
accretion for stockholders today. It is yet another example of
smart management generating impactful results in addition to
WisdomTree’s best-in-class pace of organic growth relative to our
publicly-traded asset manager peers, the scalability of our
platform and our leadership in tokenization and blockchain-enabled
finance.”
Under the terms of the transaction, WisdomTree paid GBH $40
million on the closing date and has agreed to pay the remainder of
the purchase price in equal annual installments on the first,
second and third anniversaries of the closing date, with no
requirement to pay interest. The $6.45 price per share (on an
as-converted basis) represents a 3% discount to the trailing 3-day
volume-weighted average price (VWAP) of WisdomTree’s common stock
ending Friday, November 17, 2023.
Recent proactive actions by WisdomTree’s management team have
generated both earnings accretion and ancillary benefits. The
termination of WisdomTree’s contractual gold payment obligation
(“gold royalty buyout”) this past May was 15% accretive to earnings
and removed a perpetual stream of payments from the Company’s
P&L and a $180 million liability from its balance sheet.
Today’s share repurchase generates an additional 7% accretion to
Street forecasts and removes a potential risk of overhang on
WisdomTree’s stock price had GBH disposed of the 13.1 million
shares of common stock underlying the preferred shares by other
means.
The repurchased preferred shares were originally issued to GBH
in May 2023 in connection with the gold royalty buyout. The
investor rights agreement that WisdomTree and GBH entered into in
May 2023, which provided GBH with certain rights and obligations
with respect to the shares, including registration rights, was
terminated in connection with this transaction.
For further information regarding the terms and conditions
contained in the stock repurchase agreement and other definitive
transaction agreements between WisdomTree and GBH, see WisdomTree’s
Current Report on Form 8-K filed with the Securities and Exchange
Commission in connection with the transaction.
About WisdomTree
WisdomTree is a global financial innovator, offering a
well-diversified suite of exchange-traded products (ETPs), models,
solutions and products leveraging blockchain-enabled technology. We
empower investors and consumers to shape their future and support
financial professionals to better serve their clients and grow
their businesses. WisdomTree is leveraging the latest financial
infrastructure to create products that provide access, transparency
and an enhanced user experience. Building on our heritage of
innovation, we are also developing and have launched
next-generation digital products, services and structures,
including digital or blockchain-enabled mutual funds and tokenized
assets, as well as our blockchain-native digital wallet, WisdomTree
Prime™.
WisdomTree currently has approximately $97.4 billion in assets
under management globally.
For more information about WisdomTree and WisdomTree Prime™,
visit: https://www.wisdomtree.com.
Please visit us on X, formerly known as Twitter, at
@WisdomTreeNews.
WisdomTree® is the marketing name for WisdomTree, Inc. and its
subsidiaries worldwide.
Cautionary Statement Regarding Forward-Looking
Statements
Any statements contained in this press release that do not
describe historical facts may constitute forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Such statements are identified by use of the words
“anticipates,” “believes,” “estimates,” “expects,” “intends,”
“plans,” “predicts,” “projects,” “should,” “views,” and similar
expressions. Any forward-looking statements contained herein are
based on current expectations, but are subject to risks and
uncertainties that could cause actual results to differ materially
from those indicated, including, but not limited to, the potential
effects of the share repurchase transaction on WisdomTree’s
earnings per share, net income, operating income, operating margin,
interest income, dilution and the price of its common stock, and
WisdomTree’s ability to achieve its financial and business plans,
goals and objectives and drive stockholder value, including with
respect to its ability to successfully implement its strategy
relating to WisdomTree Prime™, and other risk factors discussed
from time to time in WisdomTree’s filings with the SEC, including
those factors discussed under the caption “Risk Factors” in its
most recent annual report on Form 10-K, filed with the SEC on
February 28, 2023, and in subsequent reports filed with or
furnished to the SEC. WisdomTree assumes no obligation and does not
intend to update these forward-looking statements, except as
required by law, to reflect events or circumstances occurring after
today’s date.
Category: Business Update
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WisdomTree
Investor Relations WisdomTree, Inc. Jeremy Campbell
+1.646.522.2602 Jeremy.campbell@wisdomtree.com
Corporate Communications WisdomTree, Inc. Jessica Zaloom
+1.917.267.3735 jzaloom@wisdomtree.com /
wisdomtree@fullyvested.com
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