10/31/2024 | Press release | Distributed by Public on 10/31/2024 06:44
TABLE OF CONTENTS
Per Share and
accompanying
Purchase
Warrants
|
Total
|
|||||
Offering price
|
$0.3039
|
$ 3,002,870.24
|
||||
Placement agent fees(1)
|
$0.0182
|
$180,172.21
|
||||
Proceeds to Bionano Genomics, Inc. before expenses
|
$0.2857
|
$2,822,698.03
|
(1)
|
See the section titled "Plan of Distribution" beginning on page S-21 of this prospectus supplement for more information regarding the compensation to be received by the placement agent.
|
TABLE OF CONTENTS
ABOUT THIS PROSPECTUS SUPPLEMENT
|
S-i
|
||
PROSPECTUS SUPPLEMENT SUMMARY
|
S-1
|
||
THE OFFERING
|
S-3
|
||
RISK FACTORS
|
S-5
|
||
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
|
S-9
|
||
USE OF PROCEEDS
|
S-11
|
||
DIVIDEND POLICY
|
S-12
|
||
DESCRIPTION OF SECURITIES WE ARE OFFERING
|
S-13
|
||
MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES
|
S-15
|
||
PLAN OF DISTRIBUTION
|
S-21
|
||
LEGAL MATTERS
|
S-23
|
||
EXPERTS
|
S-23
|
||
WHERE YOU CAN FIND ADDITIONAL INFORMATION
|
S-23
|
||
INCORPORATION OF CERTAIN INFORMATION BY REFERENCE
|
S-24
|
||
Page
|
|||
ABOUT THIS PROSPECTUS
|
ii
|
||
PROSPECTUS SUMMARY
|
1
|
||
RISK FACTORS
|
6
|
||
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
|
7
|
||
USE OF PROCEEDS
|
9
|
||
DESCRIPTION OF CAPITAL STOCK
|
10
|
||
DESCRIPTION OF DEBT SECURITIES
|
13
|
||
DESCRIPTION OF WARRANTS
|
19
|
||
LEGAL OWNERSHIP OF SECURITIES
|
21
|
||
PLAN OF DISTRIBUTION
|
24
|
||
LEGAL MATTERS
|
26
|
||
EXPERTS
|
26
|
||
WHERE YOU CAN FIND MORE INFORMATION
|
26
|
||
INCORPORATION OF CERTAIN INFORMATION BY REFERENCE
|
27
|
||
TABLE OF CONTENTS
TABLE OF CONTENTS
•
|
Revenue for the year ended December 31, 2023 was $36.1 million, an increase of 30% compared to the year ended December 31, 2022.
|
•
|
Revenue for the six-month period ended June 30, 2024 was $13.3 million, an increase of 11% compared to the same period in 2023.
|
•
|
The installed base of OGM systems, including Saphyr®, was 326 as of December 31, 2023, an increase of approximately 36% from a total installed base of 240 as of December 31, 2022.
|
•
|
The installed base of OGM systems, including Saphyr®, was 363 as of June 30, 2024, an increase of approximately 29% from a total installed base of 281 as of June 30, 2023.
|
•
|
For the year ended December 31, 2023, total flowcells sold reached 26,444, an increase of approximately 72% over the 15,375 flowcells sold during the year ended December 31, 2022.
|
•
|
For the six-month period ended June 30, 2024, total flowcells sold reached 14,414, an increase of approximately 12% over the 12,888 flowcells sold in the same period of 2023.
|
TABLE OF CONTENTS
TABLE OF CONTENTS
TABLE OF CONTENTS
•
|
4,361,000 shares of common stock issuable upon the exercise of outstanding stock options with a weighted-average exercise price of $15.92 per share;
|
•
|
30,430,000 shares of common stock issuable upon the exercise of outstanding warrants with a weighted average exercise price of $3.41 per share;
|
•
|
10,000,000 shares of common stock issuable upon the exercise of outstanding convertible notes with a conversion price of $2.00 per share;
|
•
|
177,814 shares of common stock reserved for future issuance under our 2020 Inducement Plan ("2020 Plan"), plus any additional shares of our common stock that may become available under the 2020 Plan;
|
•
|
13,489 shares of our common stock reserved for issuance under our 2018 Employee Stock Purchase Plan ("ESPP"), as well as any future increases in the number of shares of our common stock reserved for issuance under the ESPP; and
|
•
|
2,118,396 shares of our common stock reserved for issuance under our 2018 Equity Incentive Plan ("EIP").
|
•
|
no exercise of the Purchase Warrants; and
|
•
|
no exercise or settlement, as applicable, of the outstanding stock options, warrants or convertible notes described in this prospectus supplement.
|
TABLE OF CONTENTS
TABLE OF CONTENTS
•
|
our commercial progress in marketing and selling our genome analysis systems, including sales and revenue trends;
|
•
|
changes in laws or regulations applicable to our systems;
|
•
|
adverse developments related to our laboratory facilities;
|
•
|
increased competition in the diagnostics services industry;
|
•
|
changes in the structure or funding of research at academic and governmental research institutions, as well as pharmaceutical, biotechnology and contract research companies, including changes that would affect their ability to purchase our products, consumables and technologies;
|
•
|
the failure to obtain and/or maintain coverage and adequate reimbursement for our Bionano Laboratories products and diagnostic assays and patients' willingness to pay out-of-pocket in the absence of such coverage and adequate reimbursement;
|
•
|
the failure of our customers to obtain and/or maintain coverage and adequate reimbursement for their services using our Saphyr systems, Ionic Purification systems or our VIA software;
|
•
|
adverse developments concerning our manufacturers and suppliers;
|
•
|
our inability to establish future collaborations;
|
•
|
additions or departures of key scientific or management personnel;
|
•
|
introduction of new testing services offered by us or our competitors;
|
•
|
announcements of significant acquisitions, dispositions, strategic partnerships, joint ventures or capital commitments by us or our competitors;
|
•
|
our ability to effectively manage our growth;
|
•
|
the size and growth, if any, of our targeted markets;
|
•
|
the failure or discontinuation of any of our product development and research programs;
|
•
|
actual or anticipated variations in quarterly operating results;
|
•
|
our cash position; our failure to meet the estimates and projections of the investment community and securities analysts or that we may otherwise provide to the public;
|
•
|
publication of research reports about us or our industries or positive or negative recommendations or withdrawal of research coverage by securities analysts;
|
•
|
changes in the market valuations of similar companies;
|
•
|
overall performance of the equity markets;
|
•
|
issuances of debt or equity securities;
|
•
|
sales of our securities by us or our stockholders in the future;
|
•
|
trading volume of our securities;
|
•
|
changes in accounting practices;
|
•
|
ineffectiveness of our internal controls;
|
•
|
data breaches of our company, providers, vendors or customers;
|
•
|
regulatory or legal developments in the United States and other countries;
|
TABLE OF CONTENTS
•
|
disputes or other developments relating to proprietary rights, including our ability to adequately protect our proprietary rights in our technologies;
|
•
|
significant lawsuits, including patent or stockholder litigation;
|
•
|
natural disasters, infectious diseases, conflict, including the ongoing military conflict between Russia and Ukraine and the related sanctions, the Israel-Hamas war, civil unrest, epidemics or pandemics including COVID-19, outbreaks, resurgences or major catastrophic events;
|
•
|
general political and economic conditions, including recent and potential future disruptions in access to bank deposits or lending commitments due to bank failures;
|
•
|
our cost savings initiative announced in March 2024;
|
•
|
other events or factors, many of which are beyond our control; and
|
•
|
other uncertainties affecting us including those described in the sections titled "Risk Factors" in this prospectus supplement, in our most recent Annual Report on Form 10-K, in our Quarterly Reports on Form 10-Q and in our Current Reports on Form 8-K filed with the SEC.
|
TABLE OF CONTENTS
TABLE OF CONTENTS
•
|
our ability to finance our operations and business initiatives, including our ability to successfully implement our strategic restructuring plan, any strategic alternatives and other cost-reduction activities;
|
•
|
the size and growth potential of the markets for our products, and our ability to serve those markets;
|
•
|
the rate and degree of market acceptance of our products;
|
•
|
our ability to manage the growth of our business and integrate acquired businesses;
|
•
|
our ability to expand our commercial organization to address effectively existing and new markets that we intend to target;
|
•
|
the impact from future regulatory, judicial, and legislative changes or developments in the U.S. and foreign countries;
|
•
|
our ability to successfully execute our strategy and meet anticipated goals and milestones;
|
•
|
our ability to compete effectively in a competitive industry;
|
•
|
the introduction of competitive technologies or improvements in existing technologies and the success of any such technologies;
|
•
|
the performance of our third-party contract sales organizations, suppliers and manufacturers;
|
•
|
our ability to attract and retain key scientific or management personnel;
|
•
|
the accuracy of our estimates regarding expenses, future revenues, reimbursement rates, capital requirements and needs for additional financing;
|
•
|
the impact of geopolitical and macroeconomic developments, such as the ongoing conflict between Ukraine and Russia and related sanctions, the Israel-Hamas war, potential future disruptions in access to bank deposits or lending commitments due to bank failures, global pandemics, inflation, increased cost of goods, supply chain issues, and global financial market conditions; on our business and operations, as well as the business or operations of our suppliers, customers, manufacturers, research partners and other third parties with whom we conduct business and our expectations with respect to the duration of such impacts and the resulting effects on our business;
|
•
|
our expected cash runway, ability to realize the anticipated benefits and synergies of our recent and any future acquisitions or other strategic transactions;
|
•
|
use of our existing cash and cash equivalents, available-for-sale securities and the intended use of the net proceeds from this offering of our securities under this prospectus supplement;
|
•
|
our expected cash runway, ability to continue as a going concern and our ability to obtain funding for our operations;
|
TABLE OF CONTENTS
•
|
our ability to attract collaborators and strategic partnerships; and
|
•
|
other uncertainties affecting us including those described in the sections titled "Risk Factors" in this prospectus supplement, in our most recent Annual Report on Form 10-K, in our Quarterly Reports on Form 10-Q and in our Current Reports on Form 8-K filed with the SEC.
|
TABLE OF CONTENTS
TABLE OF CONTENTS
TABLE OF CONTENTS
TABLE OF CONTENTS
TABLE OF CONTENTS
•
|
an individual who is a citizen or resident of the United States;
|
•
|
a corporation, or an entity treated as a corporation for U.S. federal income tax purposes, created or organized in the United States or under the laws of the United States or of any state thereof or the District of Columbia;
|
•
|
an estate, the income of which is subject to U.S. federal income tax regardless of its source; or
|
TABLE OF CONTENTS
•
|
a trust if (a) a U.S. court can exercise primary supervision over the trust's administration and one or more U.S. persons have the authority to control all of the trust's substantial decisions or (b) the trust has a valid election in effect under applicable U.S. Treasury Regulations to be treated as a U.S. person.
|
TABLE OF CONTENTS
•
|
fails to furnish the holder's taxpayer identification number, which for an individual is ordinarily his or her social security number;
|
•
|
furnishes an incorrect taxpayer identification number;
|
•
|
is notified by the IRS that the holder previously failed to properly report payments of interest or dividends; or
|
•
|
fails to certify under penalties of perjury that the holder has furnished a correct taxpayer identification number and that the IRS has not notified the holder that the holder is subject to backup withholding.
|
TABLE OF CONTENTS
•
|
the gain is effectively connected with a U.S. trade or business of the non-U.S. holder and, if an applicable income tax treaty so provides, is attributable to a permanent establishment or a fixed base maintained in
|
TABLE OF CONTENTS
•
|
the non-U.S. holder is a nonresident alien individual who is present in the United States for 183 days or more in the taxable year of the disposition and certain other conditions are met, in which case the non-U.S. holder will be subject to a 30% U.S. federal income tax (or such lower rate as may be specified by an applicable income tax treaty) on the net gain derived from the disposition, which may be offset by U.S. source capital losses of the non-U.S. holder, if any (even though the individual is not considered a resident of the United States); or
|
•
|
we are, or have been, at any time during the five-year period preceding such disposition (or the non-U.S. holder's holding period, if shorter) a "U.S. real property holding corporation" in which case such non-U.S. holder generally will be taxed on its net gain derived from the disposition as effectively connected income taxable at the U.S. federal income tax rates applicable to U.S. persons (as defined in the Code); however, the branch profits tax described above will not apply to a U.S. holder that is a foreign corporation. Generally, a corporation is a U.S. real property holding corporation if the fair market value of its U.S. real property interests equals or exceeds 50% of the sum of the fair market value of its worldwide real property interests plus its other assets used or held for use in a trade or business. Although there can be no assurance, we do not believe that we are, or have been, a U.S. real property holding corporation, or that we are likely to become one in the future. Even if we are or become a U.S. real property holding corporation, provided that our common stock is regularly traded, as defined by applicable U.S. Treasury Regulations, on an established securities market, the Shares will be treated as a U.S. real property interest only with respect to a non-U.S. holder that holds more than 5% of our outstanding common stock, directly or indirectly, actually or constructively, during the shorter of the 5-year period ending on the date of the disposition or the period that the non-U.S. holder held the Shares or Warrant Shares, as applicable. There can be no assurance that our common stock will continue to qualify as regularly traded on an established securities market. Disposition by a non-U.S. holder of Purchase Warrants (that are not expected to be regularly traded on an established securities market) may also be eligible for an exemption from withholding even if we are treated as a U.S. real property holding corporation, if on the date such Purchase Warrants were acquired by such non-U.S. holder such holdings had a fair market value no greater than the fair market value on that date of 5% of our regularly-traded common stock, provided that, if a non-U.S. holder holding our not-regularly traded Purchase Warrants subsequently acquires additional Purchase Warrants, then such interests would be aggregated and valued as of the date of the subsequent acquisition to apply this 5% limitation.
|
TABLE OF CONTENTS
TABLE OF CONTENTS
Per Share and
accompanying
Purchase
Warrants
|
Total
|
|||||
Offering price
|
$0.3039
|
$3,002,870.24
|
||||
Placement agent's fees
|
$0.0182
|
$180,172.21
|
||||
Proceeds to us, before expenses
|
$0.2857
|
$2,822,698.03
|
||||
TABLE OF CONTENTS
•
|
may not engage in any stabilization activity in connection with our securities; and
|
•
|
may not bid for or purchase any of our securities or attempt to induce any person to purchase any of our securities, other than as permitted under the Exchange Act, until they have completed their participation in the distribution.
|
TABLE OF CONTENTS
TABLE OF CONTENTS
•
|
our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on March 5, 2024;
|
•
|
our Quarterly Reports on Form 10-Q for the three-month periods ended March 31, 2024 and June 30, 2024, filed with the SEC on May 8, 2024 and August 7, 2024, respectively;
|
•
|
the information specifically incorporated by reference into our Annual Report on Form 10-K for the year ended December 31, 2023 from our definitive proxy statement relating to our 2024 annual meeting of securityholders, filed with the SEC on April 26, 2024.
|
•
|
our Current Reports on Form 8-K (other than information furnished rather than filed) filed with the SEC on February 28, 2024 (with respect to Items 1.01 and 9.01 only), March 5, 2024 (with respect to Item 2.05 only), April 5, 2024 (with respect to Items 1.01 and 9.01 only), April 8, 2024, May 8, 2024 (with respect to Item 2.05 only), May 28, 2024 (with respect to Items 1.01, 1.02, 2.03, 3.02, 8.01 and 9.01 only), June 21, 2024, July 8, 2024, July 18, 2024, September 9, 2024 (with respect to Items 2.05 and 5.02 only) and October 10, 2024; and
|
•
|
the description of our common stock which is registered under Section 12 of the Exchange Act, in our registration statement on Form 8-A, filed on August 17, 2018, including any amendments or reports filed for the purposes of updating this description.
|
TABLE OF CONTENTS
TABLE OF CONTENTS
Page
|
|||
ABOUT THIS PROSPECTUS
|
ii
|
||
PROSPECTUS SUMMARY
|
1
|
||
RISK FACTORS
|
6
|
||
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
|
7
|
||
USE OF PROCEEDS
|
9
|
||
DESCRIPTION OF CAPITAL STOCK
|
10
|
||
DESCRIPTION OF DEBT SECURITIES
|
13
|
||
DESCRIPTION OF WARRANTS
|
19
|
||
LEGAL OWNERSHIP OF SECURITIES
|
21
|
||
PLAN OF DISTRIBUTION
|
24
|
||
LEGAL MATTERS
|
26
|
||
EXPERTS
|
26
|
||
WHERE YOU CAN FIND MORE INFORMATION
|
26
|
||
INCORPORATION OF CERTAIN INFORMATION BY REFERENCE
|
27
|
||
TABLE OF CONTENTS
TABLE OF CONTENTS
TABLE OF CONTENTS
•
|
designation or classification;
|
•
|
aggregate principal amount or aggregate offering price;
|
•
|
maturity, if applicable;
|
•
|
original issue discount, if any;
|
•
|
rates and times of payment of interest or dividends, if any;
|
•
|
redemption, conversion, exercise, exchange or sinking fund terms, if any;
|
•
|
conversion or exchange prices or rates, if any, and, if applicable, any provisions for changes to or adjustments in the conversion or exchange prices or rates and in the securities or other property receivable upon conversion or exchange;
|
•
|
ranking, if applicable;
|
•
|
restrictive covenants, if any;
|
•
|
voting or other rights, if any; and
|
•
|
important U.S. federal income tax considerations.
|
•
|
the names of those underwriters or agents;
|
•
|
applicable fees, discounts and commissions to be paid to them;
|
•
|
details regarding options to purchase additional securities, if any; and
|
•
|
the estimated net proceeds to us.
|
TABLE OF CONTENTS
TABLE OF CONTENTS
•
|
We are an early commercial-stage company and have a limited commercial history, which may make it difficult to evaluate our current business and predict our future performance;
|
•
|
We have incurred recurring net losses since we were formed and expect to incur losses in the future. We cannot be certain that we will achieve or sustain profitability;
|
•
|
Our quarterly and annual operating results and cash flows have fluctuated in the past and might continue to fluctuate, which makes our future operating results difficult to predict and could cause the market price of our securities to decline substantially;
|
•
|
Our future capital needs are uncertain and we may require additional funding in the future to advance the commercialization of our Saphyr system, Ionic Purification system, VIA software, and our other products, technologies and services, as well as continue our research and development efforts. If we fail to obtain additional funding, we will be forced to delay, reduce or eliminate our commercialization and development efforts;
|
•
|
Unfavorable geopolitical and macroeconomic developments could adversely affect our business, financial condition or results of operations;
|
•
|
The COVID-19 pandemic has materially affected and could continue to materially affect our operations globally, including at our headquarters in San Diego, California, as well as the business or operations of our research partners, customers and other third parties with whom we conduct business;
|
•
|
Acquisitions, joint ventures and other strategic transactions could disrupt or otherwise harm our business and may cause dilution to our stockholders;
|
•
|
If our products or technologies fail to achieve and sustain sufficient market acceptance, our revenue will be adversely affected;
|
•
|
In the near term, sales of our Saphyr system, Ionic Purification system, VIA software, consumables and genome analysis services will depend on levels of research and development spending by clinical research laboratories, academic and governmental research institutions and biopharmaceutical companies, a reduction in which could limit demand for our technologies and products and adversely affect our business and operating results;
|
•
|
If we do not successfully manage the development and launch of new products and technologies, our financial results could be adversely affected;
|
•
|
Our future success is dependent upon our ability to further penetrate our existing customer base, attract new customers and retain the customers of our acquired businesses;
|
TABLE OF CONTENTS
•
|
The size of the markets for our products and technologies may be smaller than we estimate, and new markets may not develop as quickly as we expect, or at all, limiting our ability to successfully sell our products and technologies.
|
•
|
We are currently limited to "research use only," or RUO, with respect to many of the materials and components used in our consumable products including our assays;
|
•
|
If the FDA determines that our RUO products are medical devices or if we seek to market our RUO products for clinical diagnostic or health screening use, we will be required to obtain regulatory clearance(s) or approval(s), and may be required to cease or limit sales of our then marketed products, which could materially and adversely affect our business, financial condition and results of operations. Any such regulatory process would be expensive, time-consuming and uncertain both in timing and in outcome;
|
•
|
If we are unable to protect our intellectual property, it may reduce our ability to maintain any technological or competitive advantage over our competitors and potential competitors, and our business may be harmed; and
|
•
|
The price of our securities has been and may in the future be volatile or may decline regardless of our operating performance, and you could lose all or part of your investment.
|
TABLE OF CONTENTS
TABLE OF CONTENTS
•
|
the size and growth potential of the markets for our products, and our ability to serve those markets;
|
•
|
the rate and degree of market acceptance of our products;
|
•
|
our ability to manage the growth of our business and integrate acquired businesses;
|
•
|
our ability to expand our commercial organization to address effectively existing and new markets that we intend to target;
|
•
|
the impact from future regulatory, judicial, and legislative changes or developments in the U.S. and foreign countries;
|
•
|
our ability to successfully execute our strategy and meet anticipated goals and milestones;
|
•
|
our ability to compete effectively in a competitive industry;
|
•
|
the introduction of competitive technologies or improvements in existing technologies and the success of any such technologies;
|
•
|
the performance of our third-party contract sales organizations, suppliers and manufacturers;
|
•
|
our ability to attract and retain key scientific or management personnel;
|
•
|
the accuracy of our estimates regarding expenses, future revenues, reimbursement rates, capital requirements and needs for additional financing;
|
•
|
the impact of geopolitical and macroeconomic developments, such as the ongoing conflict between Ukraine and Russia, related sanctions and the COVID-19 pandemic on our business and operations, as well as the business or operations of our suppliers, customers, manufacturers, research partners and other third parties with whom we conduct business and our expectations with respect to the duration of such impacts and the resulting effects on our business;
|
•
|
our ability to realize the anticipated benefits and synergies of our recent and any future acquisitions or other strategic transactions;
|
•
|
our intended use of the net proceeds from offerings of our securities under this prospectus;
|
•
|
our ability to continue as a going concern within 12 months from the date of our Annual Report on Form 10-K for the year ended December 31, 2022 and our ability to obtain funding for our operations; and
|
•
|
our ability to attract collaborators and strategic partnerships.
|
TABLE OF CONTENTS
TABLE OF CONTENTS
TABLE OF CONTENTS
TABLE OF CONTENTS
•
|
prior to the date of the transaction, the board of directors of the corporation approved either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder;
|
•
|
upon consummation of the transaction which resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the commencement of the transaction, excluding for purposes of determining the number of shares outstanding (but not the outstanding voting stock owned by the interested stockholder) (a) shares owned by persons who are directors and also officers and (b) shares owned by employee stock plans in which employee participants do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer; or
|
•
|
on or subsequent to the consummation of the transaction, the business combination is approved by the board of directors and authorized at an annual or special meeting of stockholders, and not by written consent, by the affirmative vote of at least 66 2/3% of the outstanding voting stock which is not owned by the interested stockholder.
|
•
|
any merger or consolidation involving the corporation and the interested stockholder;
|
•
|
any sale, lease, exchange, mortgage, pledge, transfer or other disposition involving the interested stockholder of 10% or more of the assets of the corporation;
|
•
|
subject to exceptions, any transaction involving the corporation that has the effect of increasing the proportionate share of the stock of any class or series of the corporation beneficially owned by the interested stockholder;
|
•
|
subject to exceptions, any transaction that results in the issuance or transfer by the corporation of any stock of the corporation to the interested stockholder; and
|
•
|
the receipt by the interested stockholder of the benefit of any loans, advances, guarantees, pledges or other financial benefits provided by or through the corporation.
|
•
|
do not provide stockholders with cumulative voting rights such that stockholders holding a majority of the voting power of our shares of common stock may be able to elect all of our directors;
|
•
|
provide for stockholder actions to be taken at a duly called meeting of stockholders and not by written consent;
|
•
|
provide that a special meeting of stockholders may only be called by a majority of our board of directors, the chair of our board of directors or our chief executive officer;
|
•
|
establish an advance notice procedure for stockholder proposals to be brought before an annual meeting of our stockholders, including proposed nominations of persons for election to our board of directors;
|
•
|
divide our board of directors into three classes with staggered three-year terms;
|
•
|
provide that the authorized number of directors may be changed only by resolution adopted by a majority of the authorized number of directors constituting the board of directors;
|
TABLE OF CONTENTS
•
|
provide that the board of directors or any individual director may only be removed with cause and the affirmative vote of the holders of at least 66 2/3% of the voting power of all of our then outstanding common stock;
|
•
|
provide that all vacancies, including newly created directorships, may, except as otherwise required by law or subject to the rights of holders of preferred stock as designated from time to time, be filled by the affirmative vote of a majority of directors then in office, even if less than a quorum;
|
•
|
provide that the Court of Chancery of the State of Delaware will be the sole and exclusive forum for (i) any derivative action or proceeding brought on our behalf, (ii) any action asserting a claim of breach of a fiduciary duty owed by any of our directors or officers to us or our stockholders, (iii) any action asserting a claim against us arising pursuant to any provision of the General Corporation Law of the State of Delaware or our certificate of incorporation or bylaws, or (iv) any action asserting a claim against us governed by the internal affairs doctrine (these choice of forum provisions do not apply to suits brought to enforce a duty or liability created by the Securities Act, the Exchange Act, or any other claim for which the federal courts have exclusive jurisdiction).
|
TABLE OF CONTENTS
•
|
the title of the series of debt securities;
|
•
|
any limit upon the aggregate principal amount that may be issued;
|
•
|
the maturity date or dates;
|
•
|
the form of the debt securities of the series;
|
•
|
the applicability of any guarantees;
|
•
|
whether or not the debt securities will be secured or unsecured, and the terms of any secured debt;
|
•
|
whether the debt securities rank as senior debt, senior subordinated debt, subordinated debt or any combination thereof, and the terms of any subordination;
|
•
|
if the price (expressed as a percentage of the aggregate principal amount thereof) at which such debt securities will be issued is a price other than the principal amount thereof, the portion of the principal amount thereof payable upon declaration of acceleration of the maturity thereof, or if applicable, the portion of the principal amount of such debt securities that is convertible into another security or the method by which any such portion shall be determined;
|
TABLE OF CONTENTS
•
|
the interest rate or rates, which may be fixed or variable, or the method for determining the rate and the date interest will begin to accrue, the dates interest will be payable and the regular record dates for interest payment dates or the method for determining such dates;
|
•
|
our right, if any, to defer payment of interest and the maximum length of any such deferral period;
|
•
|
if applicable, the date or dates after which, or the period or periods during which, and the price or prices at which, we may, at our option, redeem the series of debt securities pursuant to any optional or provisional redemption provisions and the terms of those redemption provisions;
|
•
|
the date or dates, if any, on which, and the price or prices at which we are obligated, pursuant to any mandatory sinking fund or analogous fund provisions or otherwise, to redeem, or at the holder's option to purchase, the series of debt securities and the currency or currency unit in which the debt securities are payable;
|
•
|
the denominations in which we will issue the series of debt securities, if other than denominations of $1,000 and any integral multiple thereof;
|
•
|
any and all terms, if applicable, relating to any auction or remarketing of the debt securities of that series and any security for our obligations with respect to such debt securities and any other terms which may be advisable in connection with the marketing of debt securities of that series;
|
•
|
whether the debt securities of the series shall be issued in whole or in part in the form of a global security or securities; the terms and conditions, if any, upon which such global security or securities may be exchanged in whole or in part for other individual securities; and the depositary for such global security or securities;
|
•
|
if applicable, the provisions relating to conversion or exchange of any debt securities of the series and the terms and conditions upon which such debt securities will be so convertible or exchangeable, including the conversion or exchange price, as applicable, or how it will be calculated and may be adjusted, any mandatory or optional (at our option or the holders' option) conversion or exchange features, the applicable conversion or exchange period and the manner of settlement for any conversion or exchange;
|
•
|
if other than the full principal amount thereof, the portion of the principal amount of debt securities of the series which shall be payable upon declaration of acceleration of the maturity thereof;
|
•
|
additions to or changes in the covenants applicable to the particular debt securities being issued, including, among others, the consolidation, merger or sale covenant;
|
•
|
additions to or changes in the events of default with respect to the securities and any change in the right of the trustee or the holders to declare the principal, premium, if any, and interest, if any, with respect to such securities to be due and payable;
|
•
|
additions to or changes in or deletions of the provisions relating to covenant defeasance and legal defeasance;
|
•
|
additions to or changes in the provisions relating to satisfaction and discharge of the indenture;
|
•
|
additions to or changes in the provisions relating to the modification of the indenture both with and without the consent of holders of debt securities issued under the indenture;
|
•
|
the currency of payment of debt securities if other than U.S. dollars and the manner of determining the equivalent amount in U.S. dollars;
|
•
|
whether interest will be payable in cash or additional debt securities at our or the holders' option and the terms and conditions upon which the election may be made;
|
•
|
the terms and conditions, if any, upon which we will pay amounts in addition to the stated interest, premium, if any and principal amounts of the debt securities of the series to any holder that is not a "United States person" for federal tax purposes;
|
•
|
any restrictions on transfer, sale or assignment of the debt securities of the series; and
|
•
|
any other specific terms, preferences, rights or limitations of, or restrictions on, the debt securities, any other additions or changes in the provisions of the indenture, and any terms that may be required by us or advisable under applicable laws or regulations.
|
TABLE OF CONTENTS
•
|
if we fail to pay any installment of interest on any series of debt securities, as and when the same shall become due and payable, and such default continues for a period of 90 days; provided, however, that a valid extension of an interest payment period by us in accordance with the terms of any indenture supplemental thereto shall not constitute a default in the payment of interest for this purpose;
|
•
|
if we fail to pay the principal of, or premium, if any, on any series of debt securities as and when the same shall become due and payable whether at maturity, upon redemption, by declaration or otherwise, or in any payment required by any sinking or analogous fund established with respect to such series; provided, however, that a valid extension of the maturity of such debt securities in accordance with the terms of any indenture supplemental thereto shall not constitute a default in the payment of principal or premium, if any;
|
•
|
if we fail to observe or perform any other covenant or agreement contained in the debt securities or the indenture, other than a covenant specifically relating to another series of debt securities, and our failure continues for 90 days after we receive written notice of such failure, requiring the same to be remedied and stating that such is a notice of default thereunder, from the trustee or holders of at least 25% in aggregate principal amount of the outstanding debt securities of the applicable series; and
|
•
|
if specified events of bankruptcy, insolvency or reorganization occur.
|
TABLE OF CONTENTS
•
|
the direction so given by the holder is not in conflict with any law or the applicable indenture; and
|
•
|
subject to its duties under the Trust Indenture Act, the trustee need not take any action that might involve it in personal liability or might be unduly prejudicial to the holders not involved in the proceeding.
|
•
|
the holder has given written notice to the trustee of a continuing event of default with respect to that series;
|
•
|
the holders of at least 25% in aggregate principal amount of the outstanding debt securities of that series have made written request;
|
•
|
such holders have offered to the trustee indemnity satisfactory to it against the costs, expenses and liabilities to be incurred by the trustee in compliance with the request; and
|
•
|
the trustee does not institute the proceeding, and does not receive from the holders of a majority in aggregate principal amount of the outstanding debt securities of that series other conflicting directions within 90 days after the notice, request and offer.
|
•
|
to cure any ambiguity, defect or inconsistency in the indenture or in the debt securities of any series;
|
•
|
to comply with the provisions described above under "Description of Debt Securities-Consolidation, Merger or Sale;"
|
•
|
to provide for uncertificated debt securities in addition to or in place of certificated debt securities;
|
•
|
to add to our covenants, restrictions, conditions or provisions such new covenants, restrictions, conditions or provisions for the benefit of the holders of all or any series of debt securities, to make the occurrence, or the occurrence and the continuance, of a default in any such additional covenants, restrictions, conditions or provisions an event of default or to surrender any right or power conferred upon us in the indenture;
|
•
|
to add to, delete from or revise the conditions, limitations, and restrictions on the authorized amount, terms, or purposes of issue, authentication and delivery of debt securities, as set forth in the indenture;
|
•
|
to make any change that does not adversely affect the interests of any holder of debt securities of any series in any material respect;
|
•
|
to provide for the issuance of and establish the form and terms and conditions of the debt securities of any series as provided above under "Description of Debt Securities-General" to establish the form of any certifications required to be furnished pursuant to the terms of the indenture or any series of debt securities, or to add to the rights of the holders of any series of debt securities;
|
•
|
to evidence and provide for the acceptance of appointment under any indenture by a successor trustee; or
|
•
|
to comply with any requirements of the SEC in connection with the qualification of any indenture under the Trust Indenture Act.
|
TABLE OF CONTENTS
•
|
extending the fixed maturity of any debt securities of any series;
|
•
|
reducing the principal amount, reducing the rate of or extending the time of payment of interest, or reducing any premium payable upon the redemption of any series of any debt securities; or
|
•
|
reducing the percentage of debt securities, the holders of which are required to consent to any amendment, supplement, modification or waiver.
|
•
|
provide for payment;
|
•
|
register the transfer or exchange of debt securities of the series;
|
•
|
replace stolen, lost or mutilated debt securities of the series;
|
•
|
pay principal of and premium and interest on any debt securities of the series;
|
•
|
maintain paying agencies;
|
•
|
hold monies for payment in trust;
|
•
|
recover excess money held by the trustee;
|
•
|
compensate and indemnify the trustee; and
|
•
|
appoint any successor trustee.
|
TABLE OF CONTENTS
•
|
issue, register the transfer of, or exchange any debt securities of that series during a period beginning at the opening of business 15 days before the day of mailing of a notice of redemption of any debt securities that may be selected for redemption and ending at the close of business on the day of the mailing; or
|
•
|
register the transfer of or exchange any debt securities so selected for redemption, in whole or in part, except the unredeemed portion of any debt securities we are redeeming in part.
|
TABLE OF CONTENTS
•
|
the title of such securities;
|
•
|
the offering price or prices and aggregate number of warrants offered;
|
•
|
the currency or currencies for which the warrants may be purchased;
|
•
|
if applicable, the designation and terms of the securities with which the warrants are issued and the number of warrants issued with each such security or each principal amount of such security;
|
•
|
if applicable, the date on and after which the warrants and the related securities will be separately transferable;
|
•
|
if applicable, the minimum or maximum amount of such warrants which may be exercised at any one time;
|
•
|
in the case of warrants to purchase debt securities, the principal amount of debt securities purchasable upon exercise of one warrant and the price at which, and currency in which, this principal amount of debt securities may be purchased upon such exercise;
|
•
|
in the case of warrants to purchase common stock or preferred stock, the number of shares of common stock or preferred stock, as the case may be, purchasable upon the exercise of one warrant and the price at which, and the currency in which, these shares may be purchased upon such exercise;
|
•
|
the effect of any merger, consolidation, sale or other disposition of our business on the warrant agreements and the warrants;
|
•
|
the terms of any rights to redeem or call the warrants;
|
•
|
the terms of any rights to force the exercise of the warrants;
|
•
|
any provisions for changes to or adjustments in the exercise price or number of securities issuable upon exercise of the warrants;
|
•
|
the dates on which the right to exercise the warrants will commence and expire;
|
•
|
the manner in which the warrant agreements and warrants may be modified;
|
TABLE OF CONTENTS
•
|
a discussion of any material or special U.S. federal income tax consequences of holding or exercising the warrants;
|
•
|
the terms of the securities issuable upon exercise of the warrants; and
|
•
|
any other specific terms, preferences, rights or limitations of or restrictions on the warrants.
|
•
|
in the case of warrants to purchase debt securities, the right to receive payments of principal of, or premium, if any, or interest on, the debt securities purchasable upon exercise or to enforce covenants in the applicable indenture; or
|
•
|
in the case of warrants to purchase common stock or preferred stock, the right to receive dividends, if any, or, payments upon our liquidation, dissolution or winding up or to exercise voting rights, if any.
|
TABLE OF CONTENTS
TABLE OF CONTENTS
•
|
how it handles securities payments and notices;
|
•
|
whether it imposes fees or charges;
|
•
|
how it would handle a request for the holders' consent, if ever required;
|
•
|
whether and how you can instruct it to send you securities registered in your own name so you can be a holder, if that is permitted in the future;
|
•
|
how it would exercise rights under the securities if there were a default or other event triggering the need for holders to act to protect their interests; and
|
•
|
if the securities are in book-entry form, how the depositary's rules and procedures will affect these matters.
|
•
|
an investor cannot cause the securities to be registered in his or her name, and cannot obtain non-global certificates for his or her interest in the securities, except in the special situations we describe below;
|
•
|
an investor will be an indirect holder and must look to his or her own bank or broker for payments on the securities and protection of his or her legal rights relating to the securities, as we describe above;
|
•
|
an investor may not be able to sell interests in the securities to some insurance companies and to other institutions that are required by law to own their securities in non-book-entry form;
|
•
|
an investor may not be able to pledge his or her interest in the global security in circumstances where certificates representing the securities must be delivered to the lender or other beneficiary of the pledge in order for the pledge to be effective;
|
TABLE OF CONTENTS
•
|
the depositary's policies, which may change from time to time, will govern payments, transfers, exchanges and other matters relating to an investor's interest in the global security;
|
•
|
we and any applicable trustee have no responsibility for any aspect of the depositary's actions or for its records of ownership interests in the global security, nor will we or any applicable trustee supervise the depositary in any way;
|
•
|
the depositary may, and we understand that DTC will, require that those who purchase and sell interests in the global security within its book-entry system use immediately available funds, and your broker or bank may require you to do so as well; and
|
•
|
financial institutions that participate in the depositary's book-entry system, and through which an investor holds its interest in the global security, may also have their own policies affecting payments, notices and other matters relating to the securities.
|
•
|
if the depositary notifies us that it is unwilling, unable or no longer qualified to continue as depositary for that global security and we do not appoint another institution to act as depositary within 90 days;
|
•
|
if we notify any applicable trustee that we wish to terminate that global security; or
|
•
|
if an event of default has occurred with regard to securities represented by that global security and has not been cured or waived.
|
TABLE OF CONTENTS
•
|
at a fixed price or prices, which may be changed;
|
•
|
at market prices prevailing at the time of sale;
|
•
|
at prices related to such prevailing market prices; or
|
•
|
at negotiated prices.
|
•
|
on or through the facilities of the Nasdaq Capital Market or any other securities exchange or quotation or trading service on which such securities may be listed, quoted or traded at the time of sale; and/or
|
•
|
to or through a market maker other than on the Nasdaq Capital Market or such other securities exchanges or quotation or trading services.
|
•
|
the name or names of any underwriters, dealers or agents, if any;
|
•
|
the purchase price of the securities and the proceeds we will receive from the sale;
|
•
|
any options pursuant to which underwriters may purchase additional securities from us;
|
•
|
any agency fees or underwriting discounts and other items constituting agents' or underwriters' compensation;
|
•
|
any public offering price;
|
•
|
any discounts or concessions allowed or reallowed or paid to dealers; and
|
•
|
any securities exchange or market on which the securities may be listed.
|
TABLE OF CONTENTS
TABLE OF CONTENTS
TABLE OF CONTENTS
•
|
our Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on March 9, 2023;
|
•
|
our Current Report on Form 8-K (other than information furnished rather than filed) filed with the SEC on February 3, 2023 to the extent the information in such reports is filed and not furnished; and
|
•
|
the description of our common stock in our registration statement on Form 8-A, which was filed with the SEC on August 17, 2018, including all amendments and reports filed for the purpose of updating such description, including Exhibit 4.10 Annual Report on Form 10-K for the year ended December 31, 2022.
|
TABLE OF CONTENTS