Ascendis investor Coast2Coast works to end forced share sales
Coast2Coast has been offloading Ascendis shares in recent weeks to meet obligations to lenders
Ascendis Health’s anchor investor, private equity firm Coast2Coast, says it is working on measures to shore up liquidity and put an end to its forced sales of the healthcare company’s stock. To meet obligations to lenders, Coast2Coast has been a heavy seller of Ascendis shares in recent weeks. The sales, to meet margin calls and to partly settle convertible debt instruments, have contributed to a precipitous share price decline. Ascendis’s shares closed at R3.50 on Wednesday, an 83% decline since Coast2Coast paid R20 a share during a rights offer just a year ago.
“Coast2Coast has initiated a number of projects, some of which are well progressed, which will provide additional liquidity ... at which point we expect to see an end to the current overhang on the Ascendis share,” said Coast2Coast CEO Gary Shayne, who is also an Ascendis board member. Coast2Coast also owns majority stakes in consumer goods companies Bounty Brands and Marlin Brands. It has been forced to rely on those...