Pacific Biosciences Announces $900 Million Investment from SoftBank to Support Growth Initiatives
February 10 2021 - 8:00AM
Pacific Biosciences of California, Inc. (NASDAQ: PACB) (the
“Company”), a leading provider of high-quality, long-read
sequencing platforms, today announced that SB Management, a
subsidiary of Softbank Group Corp., will make an investment of $900
million in convertible senior notes to support the Company’s future
growth initiatives.
“This strategic investment by SoftBank validates
our leadership position in the long-read DNA sequencing market and
enables us to further accelerate our growth strategies”, said
Christian Henry, President and Chief Executive Officer of Pacific
Biosciences. “Currently, we offer one of the most accurate and
complete sequencing solutions on the market and this financing will
enable us to continue to expand our product portfolio and advance
our commercial expansion as we seek to transform the field of
genomics.”
“We believe that PacBio’s HiFi sequencing will
be the de facto standard tool for population genomics fundamentally
altering the practice of healthcare,” said Akshay Naheta, Chief
Executive Officer, SB Management. “Christian has assembled a
world-class management team to commercialize market-leading
sequencing technologies and to prepare population-scale
healthcare systems for a future in precision medicine. We look
forward to partnering with the Company in its efforts to build the
most advanced genome sequencing platform in the world.”
Under the terms of the investment, SB Management
will purchase a total aggregate principal amount of $900 million in
Convertible Senior Notes due 2028 (the “Notes”). The Notes will
have an initial conversion price of $43.50 per share of the
Company’s common stock, subject to customary anti-dilution and
other adjustments. The initial conversion price of $43.50
represents a 10% premium to the Company’s closing price on February
9, 2021 and a 30% premium to the Company’s average 30-day trailing
closing price. The Notes will mature on February 15, 2028, unless
earlier repurchased, redeemed or converted. The Notes bear 1.5%
interest per year. Upon conversion, the Company will have the right
to elect settlement in cash, shares, or any combination thereof in
its sole discretion.
Additional information regarding this
announcement may be found in a Current Report on Form 8-K that the
Company intends to file today with the U.S. Securities and Exchange
Commission.
The Company will announce financial results,
which remain largely consistent with the Company’s pre-release on
January 11, 2021, for the fiscal fourth quarter and fiscal year
2020 on its quarterly conference call after market close today. The
call will be webcast and may be accessed at the Company’s website
at: https://investor.pacificbiosciences.com/.
Date: February 10, 2021
Time: 4:30pm ET
Listen via Internet:
https://investor.pacificbiosciences.com/
Toll-free: 888.366.7247
International: 707.287.9330
Conference ID: 8096067
Replay:
https://investor.pacificbiosciences.com
These announcements are available on the Pacific
Biosciences Investor Relations website at ir.pacb.com.
About Pacific Biosciences
Pacific Biosciences of California, Inc. (Nasdaq:
PACB), is empowering life scientists with highly accurate long-read
sequencing. The company’s innovative instruments are based on
Single Molecule, Real-Time (SMRT®) Sequencing technology, which
delivers a comprehensive view of genomes, transcriptomes, and
epigenomes, enabling access to the full spectrum of genetic
variation in any organism. Cited in thousands of peer-reviewed
publications, PacBio® sequencing systems are in use by scientists
around the world to drive discovery in human biomedical research,
plant and animal sciences, and microbiology.
Forward-Looking Statements
All statements in this press release that are
not historical are forward-looking statements, including, among
other things, statements relating to: the closing of the
investment, the anticipated use of proceeds and any expected
benefits for the Company from application of the proceeds, the
terms of the Notes, including the effect of anti-dilution or other
adjustments, and Pacific Biosciences’ market position, future
financial performance, business plans, including in the field of
precision medicine, and objectives. These statements involve risks
and uncertainties that could cause actual results to differ
materially, including, but not limited to, failure to realize the
full benefits of the above-described investment, failure to
implement, or delays in implementing, business and product
development plans, and unforeseen changes in market conditions. You
should not place undue reliance on forward-looking statements
because they involve known and unknown risks, uncertainties,
changes in circumstances, and other factors that are, in some
cases, beyond Pacific Biosciences’ control and could cause actual
results to differ materially from the information expressed or
implied by forward-looking statements made in this press release.
Factors that could materially affect actual results can be found in
Pacific Biosciences’ most recent filings with the Securities and
Exchange Commission, including Pacific Biosciences’ most recent
reports on Forms 8-K, 10-K and 10-Q, and include those listed under
the caption “Risk Factors.” Pacific Biosciences undertakes no
obligation to revise or update information in this press release to
reflect events or circumstances in the future, even if new
information becomes available.
Contact:Investors: Trevin
Rard650.521.8450ir@pacificbiosciences.com
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