Bionano Announces Amendment to Debt Financing Arrangement to Extend Cash Runway
29 February 2024 - 12:00AM
Bionano Genomics, Inc. (“Bionano”) (Nasdaq: BNGO) today announced
that is has amended the convertible debt financing the company
entered into in October 2023 pursuant to which the company agreed
to issue and sell to a certain accredited investor (the “Buyer”)
(i) in a registered offering by the company (a) $45.0 million
aggregate principal amount of senior secured convertible notes due
2025 initially convertible by the Buyer into approximately 15.7
million shares of the company’s common stock (the “Initial
Registered Note”), and (b) warrants to purchase up to 21.7 million
shares of the company’s common stock, and (ii) in a concurrent
private placement, $35.0 million aggregate principal amount of
senior secured convertible notes due 2025 initially convertible by
the Buyer into approximately 12.2 million shares of the company’s
common stock (the “Initial Private Placement Note” and together
with the Initial Registered Note, the “Notes”). In accordance with
the terms of the Notes, the Buyer has, prior to this date,
converted $10.0 million of the principal amount of the Initial
Registered Note and the company redeemed $18.0 million of the
principal of the Initial Private Placement Note.
The arrangement announced today, includes the following:
- Reduction of the minimum available
liquidity covenant from $50.0 million to $25.0 million;
- Reduction of the restricted cash
covenant from $35.0 million to $25.0 million, which will be further
reduced as the remaining principal on the Initial Registered Note
is retired;
- Cancellation of the March 2024 partial
redemption payment and delay of the April 2024 partial redemption
payment;
- Redemption of the outstanding $17.0
million balance of the Initial Private Placement Note;
- Redemption of approximately $10.7
million of the Initial Registered Note; and
- Increase of $1.0 million to the
Retirement Fee (as defined in the Notes) of the Initial Private
Placement Note payable concurrently with redemptions of the Initial
Private Placement Note.
Immediately following the repayments above, there is
approximately $24.3 million in aggregate principal amount of the
Initial Registered Note outstanding.
While working in close collaboration with the Buyer, this
arrangement seeks both to expand the capital available to Bionano
and to reduce the amount of debt on the company’s balance sheet.
All together this arrangement provides immediate access to $30.0
million of near-term liquidity. The company will also have access
to up to an additional $25.0 million of liquidity from the
restricted cash account that will now be available as the principal
on the Notes is retired instead of upon meeting certain funding
conditions.
“The financing from October provided the company with critical
near-term capital that enabled us to extend our cash runway. We
believe that this modification of our debt obligations, combined
with the cost savings initiatives we executed in both May and
October of last year, will offer us additional flexibility to
advance our business. We will continue to carefully monitor our
expenditures and look forward to providing additional detail on our
financial progress at our Q4 & Full Year 2023 conference call.
We believe that these efforts will allow us to continue to realize
the full potential of optical genome mapping and continue on our
path to profitability,” commented Erik Holmlin, PhD, president and
chief executive officer of Bionano.
About Bionano
Bionano is a provider of genome analysis solutions that can
enable researchers and clinicians to reveal answers to challenging
questions in biology and medicine. Bionano’s mission is to
transform the way the world sees the genome through optical genome
mapping (OGM) solutions, diagnostic services and software. Bionano
offers OGM solutions for applications across basic, translational
and clinical research. Through its Lineagen, Inc. d/b/a Bionano
Laboratories business, Bionano also provides diagnostic testing for
patients with clinical presentations consistent with autism
spectrum disorder and other neurodevelopmental disabilities.
Bionano also offers an industry-leading, platform-agnostic software
solution, which integrates next-generation sequencing and
microarray data designed to provide analysis, visualization,
interpretation and reporting of copy number variants,
single-nucleotide variants and absence of heterozygosity across the
genome in one consolidated view. Bionano additionally offers
nucleic acid extraction and purification solutions using
proprietary isotachophoresis technology.
Unless specifically noted otherwise, Bionano’s OGM products
are for research use only and not for use in diagnostic
procedures.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Words such as “believe,” “can,” “could,” “may” “potential”
and similar expressions (as well as other words or expressions
referencing future events, conditions or circumstances and the
negatives thereof) convey uncertainty of future events or outcomes
and are intended to identify these forward-looking statements.
Forward-looking statements include statements regarding the
anticipated cash runway, our ability to gain access to the funds
held as restricted cash in an account control agreement under the
terms of the Notes, the expected path to profitability, the
effectiveness of our cost saving measures and the ability to
realize the full potential of optical genome mapping.
Each of these forward-looking statements involves risks and
uncertainties. Actual results or developments may differ materially
from those projected or implied in these forward-looking
statements. Factors that may cause such a difference include the
risks and uncertainties associated with: the impact of adverse
geopolitical and macroeconomic events, such as recent and future
bank failures, global pandemics, inflation, supply chain
disruptions and the ongoing conflict between Ukraine and Russia and
Israel and Hamas, on our business and the global economy; general
market conditions; changes in the competitive landscape and the
introduction of competitive technologies or improvements to
existing technologies; changes in our strategic and commercial
plans; our need and ability to obtain sufficient additional
financing to fund our strategic plans and commercialization
efforts, our ability to effectively manage our uses of cash, and
our ability to continue as a “going concern”; the ability or
potential to obtain funding to support adoption or continued use of
our technologies; and the risks and uncertainties associated
with our business and financial condition in general, including the
risks and uncertainties described in our filings with the
Securities and Exchange Commission, including, without limitation,
our Annual Report on Form 10-K for the year ended December 31, 2022
and in other filings subsequently made by us with the Securities
and Exchange Commission. All forward-looking statements contained
in this press release speak only as of the date on which they were
made and are based on management’s assumptions and estimates as of
such date. We are under no duty to update any of these
forward-looking statements after the date they are made to conform
these statements to actual results or revised expectations, except
as required by law. You should, therefore, not rely on these
forward-looking statements as representing our views as of any date
subsequent to the date the statements are made. Moreover, except as
required by law, neither we nor any other person assumes
responsibility for the accuracy and completeness of the
forward-looking statements contained in this press release.
CONTACTS
Company Contact:Erik Holmlin, CEOBionano
Genomics, Inc.+1 (858) 888-7610eholmlin@bionano.com
Investor Relations:David HolmesGilmartin
Group+1 (858) 888-7625IR@bionano.com
Bionano Genomics (NASDAQ:BNGO)
Historical Stock Chart
From Apr 2024 to May 2024
Bionano Genomics (NASDAQ:BNGO)
Historical Stock Chart
From May 2023 to May 2024