SEC Filings

Teknova Prices $40 Million Stock Offering At $5 A Share, A 26.5% Discount To Its October 19 Price

The 8 million new shares come to 13.0% of the 61,702,534 shares outstanding after the sale, with proceeds for general corporate purposes.

Matteo Parrino Jonathan Ponciano

Matteo Parrino, Jonathan Ponciano

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Teknova Prices $40 Million Stock Offering At $5 A Share, A 26.5% Discount To Its October 19 Price

Alpha Teknova priced an underwritten sale of 8,000,000 of its own common shares at $5.00 each, for $40.0 million in gross proceeds, according to a prospectus supplement dated October 21. The price is a 26.5% discount to the $6.80 last reported sale price on October 19.

Size, price and share count

The company sells the shares itself, so it receives the proceeds. Underwriting discounts and commissions come to $0.30 a share, or $2.4 million, leaving $37.6 million before expenses. The company puts net proceeds at about $37.6 million after expenses as well.

The new shares equal 13.0% of the 61,702,534 shares that will be outstanding after the offering, the prospectus's own count. That count is built on 53,702,534 shares outstanding at September 30.

Underwriters hold a 30-day option, running from the supplement date, to buy up to 1,200,000 more shares at the offering price less discounts. If they use all of it, the post-offering count is 62,902,534 and net proceeds rise to about $43.2 million.

TD Cowen and William Blair are the joint book-running managers. The underwriters expect delivery of the shares on or about October 22. At Wednesday's close the stock was $5.85, according to market data.

What the money is for

The company says it intends to use the proceeds "for general corporate purposes (including potentially the repayment of a portion of our outstanding debt obligations)." It reserves the right to reallocate the money at management's discretion.

Separately, the company has a sales agreement under which up to $50.0 million of stock remains available after the lock-up tied to this offering expires or is waived. Those shares are excluded from the post-offering count. The company says it has no effective prospectus for them and will not sell any until a new prospectus, supplement or registration statement is filed.

Preliminary third-quarter figures

The supplement also carries unaudited estimates for the quarter ended September 30. Revenue is estimated at $12.5 million to $12.7 million, up 19% to 21% from the same period a year earlier. Cash and short-term investments are estimated at $16.6 million.

Gross margin is estimated at 36.0% to 38.0%, and adjusted EBITDA at negative $1.2 million to negative $1.0 million. The company says its auditor has not audited or reviewed the figures, and that they may change materially.

The underwriters' option on 1,200,000 additional shares stays open for 30 days from the supplement date, and delivery of the base shares is expected on or about October 22.

Sources

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