Telesis Bio Secures Financing of $28.0 Million
Led by Novalis LifeSciences LLC with participation from Northpond Ventures, M-185 Corporation and BroadOak Capital Partners
Telesis Bio Inc., a leader in molecular biology automation solutions for multi-omic and synthetic biology applications, today announced it has signed a securities purchase agreement with a syndicate of healthcare-focused institutional investors that have agreed to provide initial upfront funding of $28.0 million in gross proceeds to Telesis Bio through a private placement of redeemable convertible preferred stock. The private placement also includes the issuance of warrants that, if cash exercised, would provide Telesis Bio with another $46.2 million in gross proceeds.
The financing is led by Novalis LifeSciences LLC with participation from Northpond Ventures, BroadOak Capital Partners and M-185 Corporation, an affiliate of the Company’s Chief Executive Officer and Founder, Todd R. Nelson, PhD.
Under the terms of the Redeemable Convertible Preferred Stock and Warrant Purchase Agreement, immediately following the closing of the financing, Paul Meister, a partner at Novalis LifeSciences LLC, will be appointed to the Company’s board of directors, increasing the size of its board of directors from seven to eight.
“We are pleased to announce this financing led by Novalis LifeSciences LLC with strong support from existing investors,” shared Todd R. Nelson, CEO and Founder of Telesis Bio. “Paul Meister’s tenure in the industry as a veteran executive and board member at notable companies such as Syneos Health, Fisher Scientific and ThermoFisher Scientific, will be a valuable asset to the shareholders of Telesis Bio as we seek to increase shareholder value and approach profitability in the 2024 timeframe.”
“The company’s innovative BioXp automation solutions are still in the early stages of adoption within targeted discovery workflows including biologics, cell and gene therapy and genome engineering. The value proposition to researchers will only continue to increase as the demands within the multi-omics and synthetic biology markets continues,” stated Paul Meister. “I am grateful for the opportunity to join this esteemed board of directors and support the Company’s vision for the BioXp platform.”
“While we believe strongly in our ability to grow our BioXp installed base and are confident that we can achieve our long-term revenue and profitability goals, we are adjusting expectations for the company’s financial performance for the remainder of 2023, as we continue to see challenging headwinds that may impact our revenue results,” Nelson shared. “We now anticipate full year revenue for the company to be approximately $35 million and operating expenses, including non-cash and one-time charges to be approximately $55 million. Gross margin expectations of approximately 57% remain unchanged.”
The Company intends to use the proceeds from the financing for general corporate purposes. The financing is expected to close on June 2, 2023, subject to the satisfaction of customary closing conditions.
Please refer to the Company’s Form 8-K to be filed with the Securities and Exchange Commission for the complete terms of the financing.
Published on : 01st June, 2023