Thursday, June 11, 2015

Dendreon Shares Cancelled $DNDNQ

So long, Dendreon.

On June 2, 2015, the United States Bankruptcy Court for the District of Delaware confirmed the Second Amended Plan of Liquidation (Plan) for Dendreon Corporation (DNDNQ). The Plan became effective on June 10, 2015 and DNDNQ shares were canceled.

Effective June 11, 2015, existing DNDNQ options are adjusted to no longer call for the delivery of Dendreon Corporation Common Shares upon exercise.

The option symbol DNDNQ will not change.

In settlement of DNDNQ exercise/assignment activity, a DNDNQ put exerciser (or call assignee) will receive a cash payment of the full aggregate strike price amount on the exercise settlement date. A DNDNQ put assignee (or call exerciser) will pay this amount on the exercise settlement date. Settlement will take place through OCC’s cash settlement system on the third business day after exercise.

Since DNDNQ options are American-style, they are exercisable at the election of the holder. Expiration processing for DNDNQ options will take place in the normal fashion, including automatic exercise thresholds.

Pursuant to OCC Rule 807, equity stock option contracts whose deliverables are adjusted to call for cash-only delivery will be subject to an acceleration of the expiration dates for outstanding option series. (See OCC Information Memo 23707) Additionally, the exercise by exception (ex by ex) threshold for expiring series will be $.01 in all account types.

All series of Dendreon Corporation options whose expiration dates are after 6-19-2015 will have their expiration dates advanced to 6-19-2015. Expiration dates occurring before 6-19-2015 (e.g., Flex options) will remain unchanged.
Full strike!

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