Bionano Genomics settles debt terms, deferring amortization and lowering monthly payments, improving liquidity and capital structure.
Quiver AI Summary
Bionano Genomics, Inc. announced a settlement agreement that modifies its existing senior secured convertible debentures due in May 2024. The amendment defers the December 2024 amortization payment and reduces the monthly payments from $1 million to $500,000 from January to July 2025, subsequently increasing them to $1.375 million starting in August 2025. Additionally, it lowers the conversion price from $2.00 to $0.27. As part of the agreement, the company will issue 5 million shares to the debenture holders. This amendment is aimed at strengthening Bionano's capital structure and enhancing liquidity to support growth in optical genome mapping. Further details will be provided in a filing with the SEC.
Potential Positives
- The settlement agreement and amendment defer the Company's amortization payment due in December 2024, easing immediate financial pressures.
- Reduction of monthly payments from January to July 2025 from $1,000,000 to $500,000 significantly improves short-term cash flow.
- Lowering the conversion price from $2.00 to $0.27 makes the debt more manageable and may enhance shareholder value over the long term.
- The issuance of 5,000,000 shares of common stock as part of the agreement provides additional resources to support ongoing operations and initiatives.
Potential Negatives
- Entering into a settlement agreement suggests financial distress, necessitating amendments to debt repayment terms.
- Significant dilution of existing shareholders due to the issuance of 5,000,000 new shares as part of the debt amendment.
- Reduction in monthly payment responsibilities is followed by a substantial increase in payments after the amendment period, indicating potential future cash flow challenges.
FAQ
What is the recent settlement agreement announced by Bionano Genomics?
Bionano Genomics entered into a settlement agreement that defers December 2024 amortization payments and reduces payments for early 2025.
How will the amendment affect Bionano Genomics' debt payments?
The amendment reduces monthly payments from $1,000,000 to $500,000 from January to July 2025, then increases to $1,375,000 from August 2025.
What changes were made to the conversion price of the debentures?
The conversion price was lowered from $2.00 to $0.27 as part of the settlement agreement.
How many shares of common stock will Bionano issue to the debt holders?
Bionano will issue 5,000,000 shares of common stock to the holders of the debt as part of the agreement.
What is Bionano Genomics' mission regarding genome analysis?
Bionano aims to transform genome understanding through optical genome mapping solutions, diagnostic services, and software for research purposes.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$BNGO Hedge Fund Activity
We have seen 21 institutional investors add shares of $BNGO stock to their portfolio, and 28 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- ARMISTICE CAPITAL, LLC removed 1,678,000 shares (-100.0%) from their portfolio in Q3 2024
- GEODE CAPITAL MANAGEMENT, LLC added 283,639 shares (+47.3%) to their portfolio in Q3 2024
- CITADEL ADVISORS LLC added 249,069 shares (+24906900.0%) to their portfolio in Q3 2024
- CETERA INVESTMENT ADVISERS removed 156,625 shares (-100.0%) from their portfolio in Q3 2024
- TWO SIGMA SECURITIES, LLC added 142,644 shares (+inf%) to their portfolio in Q3 2024
- VANGUARD GROUP INC added 102,495 shares (+4.9%) to their portfolio in Q3 2024
- GSA CAPITAL PARTNERS LLP added 100,414 shares (+inf%) to their portfolio in Q3 2024
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Full Release
SAN DIEGO, Dec. 31, 2024 (GLOBE NEWSWIRE) -- Bionano Genomics, Inc. (Nasdaq: BNGO) today announced that it has entered into a settlement agreement and amendment to its outstanding senior secured convertible debentures due May 26, 2024 (the “Amendment”). Importantly the Amendment defers the Company’s December 2024 amortization payment and reduces the payments due in January 2025 through July 2025 from $1,000,000 per month to $500,000 per month. Additionally, the Amendment increases the payments due beginning in August 2025 from $1,000,000 to $1,375,000 per month until the debt is paid in full and lowers the conversion price from $2.00 to $0.27. In consideration of the Amendment, the Company agreed to issue the holders of the debt 5,000,000 shares of the Company’s common stock.
The Amendment strengthens the Company’s capital structure and improves its near- term liquidity position, enhancing the Company’s ability to continue to drive adoption and utilization of optical genome mapping while continuing its efforts to maximize long term shareholder value.
Additional information regarding the Amendment will be set forth in a Current Report on Form 8-K to be filed by the Company with the Securities and Exchange Commission.
Canaccord Genuity acted as exclusive financial advisor to the Company for the offering.
The offer and sale of the common stock did not involve a public offering and was not registered under the Securities Act of 1933, as amended (the “Securities Act”), or applicable state securities laws. The common stock may not be offered or sold in the United States absent registration or pursuant to an exemption from the registration requirements of the Securities Act and applicable state securities laws.
This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities in the described offering, nor shall there be any offer, solicitation or sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
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. The Company’s mission is to transform the way the world sees the genome through OGM solutions, diagnostic services and software. The Company offers OGM solutions for applications across basic, translational and clinical research. The Company also offers an industry-leading, platform-agnostic genome analysis software solution and nucleic acid extraction and purification solutions using proprietary isotachophoresis (ITP) technology. Through its Lineagen, Inc. d/b/a Bionano Laboratories business, the Company also offers OGM-based diagnostic testing services. For more information, visit
www.bionano.com
,
www.bionanolaboratories.com
or
www.purigenbio.com
.
Unless specifically noted otherwise, Bionano’s OGM products are for research use only and not for use in diagnostic procedures.
Forward-Looking Statements of Bionano
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this press release, including statements regarding our future results of operations or financial condition, business strategy and plans, and objectives of management for future operations, are forward-looking statements. Words such as “anticipate”, “believe,” “could”, “estimate,” “expect,” “intend,” “may,” “plan,” “potential”, “predict,” “project,” “should,” “target,” “will,” or “would” and similar expressions (as well as other words or expressions referencing future events, conditions or circumstances) convey uncertainty of future events or outcomes and are intended to identify these forward-looking statements. Forward-looking statements include statements regarding our intentions, beliefs, projections, outlook, analyses or current expectations concerning, among other things: impacts of the settlement agreement and amendment on the Company’s
near-term liquidity position and the Company’s ability to continue to drive adoption and utilization of optical genome mapping
. Each of these forward-looking statements involves risks and uncertainties. Accordingly, investors and prospective investors are cautioned not to place undue reliance on these forward-looking statements as they involve inherent risk and uncertainty (both general and specific) and should note that they are provided as a general guide only and should not be relied on as an indication or guarantee of future performance. 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 timing and amount of revenue we are able to recognize in a given fiscal period; our ability to obtain sufficient financing to fund our strategic plans and commercialization efforts and our ability to continue as a “going concern”; the impact of adverse geopolitical and macroeconomic events, such as
recent and potential future bank failures and
the ongoing conflicts between Ukraine and Russia and in the Middle East
, on our business and the global economy;
general market conditions, including inflation and supply chain disruptions; challenges inherent in developing, manufacturing and commercializing our products; our ability to further deploy new products and applications and expand the market for our technology platforms; our expectations and beliefs regarding future growth of the business and the markets in which we operate; changes in our strategic and commercial plans; our ability to continue as a “going concern” which requires us to manage costs and obtain significant additional financing to fund our strategic plans and commercialization efforts; our ability to cure any deficiencies in compliance with Nasdaq Listing Rules that could adversely affect our ability to raise capital and our financial condition and business; our ability to consummate any strategic alternatives; the risk that if we fail to obtain additional financing we may seek relief under applicable insolvency laws;
; the ability of medical and research institutions to obtain funding to support adoption or continued use of our technologies; study results that differ or contradict the results mentioned in this press release;
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, 2023 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 do not undertake any obligation to publicly update any forward-looking statements, whether as a result of the receipt of new information, the occurrence of future events or otherwise, except as required by law.
CONTACTS
Company Contact:
Erik Holmlin, CEO
Bionano Genomics, Inc.
+1 (858) 888-7610
eholmlin@bionano.com
Investor Relations:
David Holmes
Gilmartin Group
+1 (858) 888-7625
IR@bionano.com
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
