Latch provides update on SVB accounts and cash position
March 13 2023 - 8:00AM
Latch, Inc. (NASDAQ: LTCH) (the “Company”), maker of LatchOS, the
full-building enterprise software-as-a-service (SaaS) platform, is
aware that the Federal Deposit Insurance Corporation (the “FDIC”)
has been appointed receiver of Silicon Valley Bank (“SVB”) due to
concerns regarding SVB’s liquidity and the closure of SVB by the
California Department of Financial Protection and Innovation. As of
March 8, 2023, the Company had deposits in various accounts with
SVB of approximately $3.1 million (a portion of which the Company
believes is insured by the FDIC), which represents less than 2% of
the Company’s total cash and cash equivalents and current and
non-current available-for-sale securities. The Company is also
aware that the FDIC has been appointed receiver of Signature Bank.
The Company does not have any deposits with Signature Bank.
The U.S. Department of
the Treasury, the U.S. Federal Reserve, and the FDIC issued a joint
statement on March 12, 2023, announcing that “Secretary [of the
Treasury Janet L. Yellen] approved actions enabling the FDIC to
complete its resolution of [SVB] in a manner that fully protects
all depositors” and that “[d]epositors will have access to all of
their money [held in SVB bank accounts] starting Monday, March 13.”
Upon receipt of all or a portion of its deposits held in SVB bank
accounts, the Company intends to transfer such deposits to an
internationally recognized and reputable money center bank.
The Company’s total cash and cash
equivalents and current and non-current available-for-sale
securities as of March 8, 2023, was approximately $215.4 million.
Of this $215.4 million, approximately $61.4 million is in a
custodial account held by U.S. Bank National Association (“U.S.
Bank”) and for which SVB Asset Management (a registered investment
advisor and non-bank affiliate of SVB) has provided investment
management services. The Company has initiated the process to
appoint a different third-party advisor to perform such investment
management services and, at this time, the Company does not believe
it will suffer a material loss in respect of the assets held by
U.S. Bank in relation to the foregoing arrangement with SVB Asset
Management. Due to the recent developments involving SVB, it is
possible the Company could experience delays in the transition of
the investment management services performed by SVB Asset
Management to a different third-party advisor.
About Latch, Inc.
Latch makes spaces better places to live, work, and visit
through a system of software, devices, and services. For more
information, please visit https://www.latch.com.
FORWARD-LOOKING STATEMENTS
This release contains certain forward-looking statements within
the meaning of the federal securities laws, including statements
regarding adoption of Latch’s technology and products. These
forward-looking statements generally are identified by the words
"believe," "project," "expect," "anticipate," "estimate," "intend,"
"strategy," "future," "opportunity," "plan," "may," "should,"
"would," "will continue," "will likely result," and similar
expressions. Forward-looking statements are predictions,
projections, and other statements about future events that are
based on current expectations and assumptions and, as a result, are
subject to risks and uncertainties. Forward-looking information
includes, but is not limited to, statements regarding: the
Company’s future products, performance, and operations, and the
related benefits to stockholders, customers, and residents; the
Company’s strategy; and the impacts of SVB’s closure and insolvency
on the Company’s assets, directly or indirectly as a result of the
recent developments involving SVB. Many factors could cause actual
future events to differ materially from the forward-looking
statements in this document, including Latch’s ability to implement
business plans and changes and developments in the industry in
which Latch competes. The foregoing list of factors is not
exhaustive. You should carefully consider the foregoing factors and
the other risks and uncertainties described in the "Risk Factors"
section of our Annual Report on Form 10-K filed with the Securities
and Exchange Commission (the “SEC”) on March 1, 2022, and other
documents filed by Latch from time to time with the SEC. These
filings identify and address other important risks and
uncertainties that could cause actual events and results to differ
materially from those contained in the forward-looking statements.
Forward-looking statements speak only as of the date they are made.
Readers are cautioned not to put undue reliance on forward-looking
statements, and the Company assumes no obligation to update or
revise these forward-looking statements, whether as a result of new
information, future events, or otherwise, except as required by
law, including the securities laws of the United States and the
rules and regulations of the SEC. The Company does not give any
assurance that it will achieve its expectations.
CONTACTS:
Investors:
investors@latch.com
Media:
press@latch.com
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