On Aug. 31, the clock will start ticking on the conversion of Ligand Pharmaceuticals Inc.'s class A common stock to class B shares.
The 60-day countdown is a result of the San Diego company's November 1992 initial public offering, one of two done at the time with special conversion features. The deals were seen as a way to entice buyers by protecting the downside for shareholders in the slow IPO market of late 1992.
The other offering, by Cortech Inc., was structured differently and CRTQ passed its conversion period without having to issue additional shares.
In LGNDA's case, it issued 4.3 million class A shares, including the overallotment, at $11. After the IPO, the company had 6.1 million class A shares outstanding