The Mechanicsville, Va.-based company’s agreement is with Citigroup Global Markets and includes its common stock at a par value of $2 per share that could total $50 million. Citigroup will also receive a commission of up to 2.75% of the gross sales price of the shares, along with a maximum of $100,000 in legal fee reimbursement.
Owens & Minor or Citigroup may terminate the agreement at any time upon notice to the other party, while Citigroup retains the right to do so in certain circumstances, including suspension or limitation on the trading of Owens & Minor’s stock on the New York Stock Exchange, according to a news release.
The healthcare logistics and medical supplies company did not list an intended use of proceeds from the offering. It is currently working under a $29 million government contract to produce N95 respirator masks amid the COVID-19 pandemic.