Hercules Capital Announces Multiple Portfolio Company Achievements in Q2 2019
25 June 2019 - 8:00PM
Business Wire
Hercules Capital, Inc. (NYSE: HTGC)
(“Hercules” or the “Company”), the largest and leading specialty
financing provider to innovative venture growth stage companies
backed by some of the leading U.S. and top tier venture capital and
select private equity firms, today announced some of the latest
achievements for select portfolio companies.
“We would like to congratulate our portfolio companies on their
latest liquidity events and corporate achievements,” said Scott
Bluestein, interim chief executive officer and chief investment
officer of Hercules. “The ongoing success and progress achieved by
many of our high-quality, innovative portfolio companies
exemplifies the depth and experience of Hercules’ underwriting
platform and our unique ability to identify and partner with some
of the industry’s leading companies in the venture-backed and
growth-stage ecosystem.”
Bluestein continued, “I am also delighted to see eight of our
portfolio companies complete their IPO debuts year-to-date, along
with five more that have filed registration statements in
preparation for their potential IPO debuts. In addition to the IPO
exits, the capital markets continue to foster a healthy environment
for M&A activities which are continuing at a strong pace.”
Hercules Portfolio Company
Achievements
Recently Completed New
Financings
- ThreatConnect, Inc., a provider of an
intelligence-driven security operations platform, announced a new
strategic growth investment led by Providence Strategic Growth, the
growth equity affiliate of Providence Equity Partners. Financial
terms were not disclosed.
- Dashlane, the leading credential and digital identity
management solution, announced it had closed a $110.0 million
Series D funding round led by Sequoia Capital. Existing investors
Rho Ventures, FirstMark Capital and Bessemer Venture Partners also
participated in the round. Dashlane will use the funds to enhance
its core product, add new capabilities to better address the needs
of consumers and businesses of all sizes, and build a
category-defining brand.
- Impossible Foods Inc., a company that develops
plant-based substitutes for meat and dairy products, announced it
had closed a $300.0 million Series E funding round led by Temasek
and Horizon Ventures. They were joined by more than a dozen
individual investors with star status, including Jay-Z, Serena
Williams, Alexis Ohanian, Katy Perry and Jaden Smith. Impossible
Foods will primarily use the funds to increase its ability to serve
unprecedented demand of their products.
- Tricida, Inc. (NASDAQ: TCDA), a pharmaceutical company
focused on the development and commercialization of its drug
candidate, TRC101, a non-absorbed, orally-administered polymer
designed to treat metabolic acidosis in patients with chronic
kidney disease by binding and removing acid from the
gastrointestinal tract, announced the closing of its public
offering of common stock which raised gross proceeds of
approximately $231.8 million.
- Insmed Incorporated (NASDAQ: INSM), a biopharmaceutical
company dedicated to improving the lives of patients battling
serious lung diseases, announced the closing of its public offering
of common stock which raised gross proceeds of approximately $250.0
million.
- Aveo Pharmaceuticals, Inc. (NASDAQ: AVEO), a
biopharmaceutical company seeking to advance targeted medicines for
oncology and other unmet medical needs, completed an underwritten
public offering of 21,739,131 shares of common stock, including
warrants to purchase an aggregate of 3,260,869 shares of its common
stock for gross proceeds of approximately $25.0 million.
- Myovant Sciences (NYSE: MYOV), a clinical-stage
healthcare company focused on developing and commercializing
innovative therapies for women’s health and prostate cancer,
completed an underwritten public offering of 17,424,243 shares of
its common stock including 2,272,727 over-allotment shares, for
gross proceeds of approximately $162.5 million.
- Druva, Inc., a SaaS startup focused on cloud data
protection and management, announced it had raised a $130.0 million
round led by Viking Global Investors. They were joined by existing
investors Riverwood Capital, Tenaya Capital, Nexus Venture Partners
as well as new investors, Neuberger Berman and Atreides
Capital.
- Thumbtack Inc., a company which operates an online
marketplace to match local professionals with customers, raised a
$120.0 million Series H funding round.
FDA Approvals and Clinical
Trials
- Gelesis, a biotechnology company developing
first-in-class hydrogel therapeutics to treat obesity and other
chronic diseases related to gastrointestinal (GI) tract, announced
that the FDA has cleared the company’s lead product candidate,
Plenity (Gelesis100), as an aid in weight management in adults with
a Body Mass Index of 25-40 kg/m2, when used in conjunction with
diet and exercise.
- Genocea Biosciences, Inc. (NASDAQ: GNCA), a
biopharmaceutical company developing personalized cancer
immunotherapies, announced that the Journal of Clinical Oncology
has selected the company’s GEN-009 clinical results presentation at
the 2019 ASCO Annual Meeting as a top-10 featured abstract in
immune-oncology.
- Myovant Sciences (NYSE: MYOV), a clinical-stage
healthcare company focused on developing and commercializing
innovative therapies for women’s health and prostate cancer,
announced that LIBERTY 1, the first of two Phase 3 studies of once
daily relugolix combination therapy met its primary efficacy
endpoint and six key secondary endpoints in women with uterine
fibroids.
M&A Activities
- In April 2019, Hercules’ portfolio company WildTangent,
Inc., a game network that powers game services for several
personal computer manufacturers, was acquired by gamigo AG, a
Hamburg-based publisher of free-to-play online and mobile games in
Europe and North America. Terms of the acquisition were not
disclosed. Hercules initially committed $20.0 million in venture
debt financing beginning in November 2007, and currently holds
100,000 shares of Preferred Series 3 stock, as of March 31,
2019.
- In May 2019, Hercules’ portfolio company Aquantia,
Corporation (NYSE: AQ), a leader in Multi-Gig Ethernet
Connectivity, announced a definitive agreement to be acquired by
Marvell Technology Group Ltd. (NASDAQ: MRVL), a leader in
infrastructure semiconductor solutions. Marvell will acquire all
outstanding shares of Aquantia common stock in exchange for
consideration of $13.25 per share in cash. Hercules currently holds
warrants for 19,683 shares of common stock as of March 31,
2019.
- In May 2019, Hercules’ portfolio company Microsystems
Holding Company, LLC (a.k.a Litera Microsystems), a software
provider for drafting, proofreading, comparing, repairing and
cleaning documents in the legal and life sciences industries, was
acquired by Hg, a specialist private equity investor and the most
active European based investor in software and services. Terms of
the transaction were not disclosed. Hercules initially committed
$12.0 million in venture debt in December 2017.
- In June 2019, Hercules’ portfolio company Brigade Group,
Inc., a technology company focused on providing business
process outsourcing services and knowledge process outsourcing
service for global corporations, was acquired by Countable
Corporation, a provider of a web and mobile-based modern civic
engagement platform designed to understand summaries of upcoming
and active legislation. Terms of the transaction were not
disclosed. Hercules currently holds 9,023 shares of common stock as
of March 31, 2019.
- In June 2019, Hercules’ portfolio company Brickell Biotech,
Inc., a privately-held clinical-stage medical dermatology
company, announced they entered into a definitive merger agreement
with Vical Incorporated (NASDAQ: VICL), under which Brickell would
merge with a wholly-owned subsidiary of Vical in an all-stock
transaction. The merger would create a pharmaceutical company
focused on developing novel and differentiated prescription
therapies addressing unmet patient needs in hyperhidrosis,
cutaneous T-cell lymphoma, psoriasis, and other debilitating
dermatologic disorders. Hercules initially committed $7.5 million
in venture debt in February 2016. Hercules currently holds warrants
for 26,086 shares of Preferred Series C stock as of March 31,
2019.
IPO Activities
As of June 25, 2019, Hercules held warrant and equity positions
in three (3) companies completing IPOs and five (5) portfolio
companies that had filed Registration Statements in contemplation
of a potential IPO, including:
- In April 2019, Hercules' portfolio company Pinterest,
Inc. (NYSE: PINS), a provider of a content sharing platform
designed for collecting, organizing and sharing items from the web,
completed its IPO offering of 75.0 million shares of Class A common
stock at an initial public offering price of $19.00 per share on
the New York Stock Exchange. Hercules currently holds 206,666
shares of common stock, as of March 31, 2019.
- In April 2019, Hercules' portfolio company TransMedics,
Inc. (NASDAQ: TMDX), a medical device company that provides a
proprietary system to enable the transplantation of functioning
organs, completed its IPO offering of 6.5 million shares of common
stock at an initial public offering price of $16.00 per share on
the NASDAQ Global Market. Hercules initially committed $10.0
million in venture debt financing in May 2008, and currently holds
88,961 shares of Preferred Series B, 119,999 shares of Preferred
Series C, 260,000 shares of Preferred Series D, and 100,200 shares
of Preferred Series F stock, as well as warrants for 175,000 shares
of Preferred Series D and 50,444 shares of Preferred Series F
stock, as of March 31, 2019.
- In May 2019, Hercules' portfolio company Fastly, Inc.
(NYSE: FSLY), a technology provider of a leading-edge cloud
platform intended to accelerate the pace of technical innovation,
mitigate evolving threats and scale on demand, completed its IPO
offering of 2.06 million shares of common stock at an initial
public offering price of $16.00 per share on the New York Stock
Exchange. Hercules initially committed $10.0 million in venture
debt financing in December 2018, and currently holds warrants for
152,195 shares of Preferred Series F stock, as of March 31,
2019.
- In May 2019, Hercules' portfolio company BridgeBio Pharma,
Inc., a clinical-stage biopharmaceutical company focused on
genetic diseases, publicly filed its S-1 registration statement
with the SEC in contemplation of an initial public offering.
BridgeBio plans to list on the Nasdaq Global Market under the
symbol “BBIO.” Hercules has committed a total of $77.0 million in
venture debt financing beginning in May 2018, and currently holds
1,008,929 shares of Preferred Series D stock, as of March 31,
2019.
- In May 2019, Hercules' portfolio company Dermavant Sciences,
Inc., a wholly owned subsidiary of Roivant Sciences, and a
clinical-stage biopharmaceutical company dedicated to developing
and commercializing innovative therapeutics in medical dermatology,
publicly filed its S-1 registration statement with the SEC in
contemplation of an initial public offering. Dermavant plans to
list on the Nasdaq Global Market under the symbol “DRMT.” Hercules
initially committed $20.0 million in venture debt financing in May
2019, and currently holds warrants for 223,642 shares of common
stock, as of May 31, 2019.
- Three (3) portfolio companies filed confidentially under the
JOBS Act.
About Hercules Capital, Inc.
Hercules Capital, Inc. (NYSE: HTGC) (“Hercules”) is the leading
and largest specialty finance company focused on providing senior
secured venture growth loans to high-growth, innovative venture
capital-backed companies in a broad variety of technology, life
sciences and sustainable and renewable technology industries. Since
inception (December 2003), Hercules has committed more than $8.9
billion to over 460 companies and is the lender of choice for
entrepreneurs and venture capital firms seeking growth capital
financing. Companies interested in learning more about financing
opportunities should contact info@htgc.com, or call 650.289.3060.
Hercules’ common stock trades on the New York Stock Exchange
(NYSE) under the ticker symbol “HTGC.”
In addition, Hercules has six outstanding bond issuances:
Institutional Senior Unsecured Notes PAR $1000.00
Retail Senior Unsecured Notes (“Baby Bonds”) PAR
$25.00
- 5.25% Notes due 2025 (NYSE: HCXZ)
- 6.25% Notes due 2033 (NYSE: HCXY)
Convertible Notes
- 4.375% Convertible Notes due 2022
Securitization Notes
- 4.605% Asset-backed Notes due 2027
- 4.703% Asset-backed Notes due 2028
Forward-Looking Statements
This press release may contain “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act
of 1995. You should understand that under Section 27A(b)(2)(B) of
the Securities Act of 1933, as amended, and Section 21E(b)(2)(B) of
the Securities Exchange Act of 1934, as amended, or the Exchange
Act, the “safe harbor” provisions of the Private Securities
Litigation Reform Act of 1995 do not apply to forward-looking
statements made in periodic reports we file under the Exchange
Act.
The information disclosed in this press release is made as of
the date hereof and reflects Hercules’ most current assessment of
its historical financial performance. Actual financial results
filed with the SEC may differ from those contained herein due to
timing delays between the date of this release and confirmation of
final audit results. These forward-looking statements are not
guarantees of future performance and are subject to uncertainties
and other factors that could cause actual results to differ
materially from those expressed in the forward-looking statements
including, without limitation, the risks, uncertainties, including
the uncertainties surrounding the current market volatility, and
other factors the Company identifies from time to time in its
filings with the SEC. Although Hercules believes that the
assumptions on which these forward-looking statements are based are
reasonable, any of those assumptions could prove to be inaccurate
and, as a result, the forward-looking statements based on those
assumptions also could be incorrect. You should not place undue
reliance on these forward-looking statements. The forward-looking
statements contained in this release are made as of the date
hereof, and Hercules assumes no obligation to update the
forward-looking statements for subsequent events.
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version on businesswire.com: https://www.businesswire.com/news/home/20190625005283/en/
Michael Hara Investor Relations and Corporate Communications
Hercules Capital, Inc. 650-433-5578 mhara@htgc.com
Hercules Capital (NYSE:HTGC)
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