Investors Hit AgroFresh With Preferred Stock Proposal Suit (2)

AgroFresh Solutions Inc. investors asked a Delaware court to block a stockholder vote regarding a preferred stock proposal, alleging the company failed to provide investors with sufficient information and coerced them into approving the proposal.

In June 2020, AgroFresh announced it had entered into an investment agreement to sell $150 million of newly issued convertible preferred stock to an affiliate of private equity firm Paine Schwartz Partners LLC, the suit says. The stock would constitute around 36% of the company’s outstanding shares of common stock on an as-converted basis, according to the lawsuit filed Tuesday in the Delaware Court of ...