Merck KGaA Increases Ownership Position In Precigen Through Exercise Of Convertible Note

(RTTNews) - Precigen Inc. (PGEN) said Friday that Merck KGaA (MKGAY.PK), through its wholly owned subsidiary, Ares Trading S.A., has elected to voluntarily convert a convertible note with an outstanding principal balance of $25 million to increase its stake in Precigen from about 11.6% to 14.8% of outstanding shares, remaining as Precigen's second largest shareholder.

The convertible note, which would have otherwise converted in December of 2020, is being exercised ahead of its designated maturity.

In December 2018, Merck KGaA reassigned to Precigen exclusive chimeric antigen receptor T-cell (CAR-T) development rights that were part of an earlier transaction between the companies.

The reassignment allowed Precigen to regain full autonomous development of its proprietary CAR-T technology platform in exchange for $150 million in stock and a $25 million convertible note, allowing Merck KGaA to maintain an investment in the future potential of Precigen's next-generation CAR-T development.