Guardant Health Announces Full Exercise of Option and Closing of Public Offering

Rhea-AI Summary

Guardant Health, a precision oncology company, announced the completion of a public offering of 13,225,000 shares of common stock at $84.00 per share, raising approximately $362.3 million in gross proceeds. Of these shares, 4,312,500 were sold by Guardant Health, while 8,912,500 were sold by SoftBank Investment Advisers. The net proceeds will primarily support corporate purposes, including working capital, sales, marketing, and capital expenditures. J.P. Morgan acted as the sole book-running manager for this offering.

Positive

• Raised approximately $362.3 million in gross proceeds.
• Net proceeds will support working capital and growth initiatives.

Negative

• Dilution risk from significant share offering.
• No proceeds from shares sold by SoftBank Investment Advisers.

REDWOOD CITY, Calif., June 08, 2020 (GLOBE NEWSWIRE) -- Guardant Health, Inc. (Nasdaq: GH) (“Guardant Health”), a leading precision oncology company focused on helping conquer cancer globally through use of its proprietary blood tests, vast data sets and advanced analytics, today announced the closing of an underwritten public offering of 13,225,000 shares of its common stock at a public offering price of $84.00 per share, before deducting underwriting discounts and commissions. Of the 13,225,000 shares sold in the offering, 4,312,500 were sold by Guardant Health and 8,912,500 were sold by SoftBank Investment Advisers, in each case including shares sold following the full exercise by the underwriter of its option to purchase additional shares.

The gross proceeds from the offering to Guardant Health, before deducting the underwriting discounts and commissions and other offering expenses, were approximately $362.3 million. Guardant Health did not receive any proceeds from the sale of its common stock by SoftBank Investment Advisers. Guardant Health intends to use the net proceeds from the offering, after deducting underwriting discounts and commissions and offering expenses payable by Guardant Health, primarily for general corporate purposes, including working capital, sales and marketing activities, general and administrative matters and capital expenditures.

J.P. Morgan Securities LLC acted as sole book-running manager of the offering.

The public offering was made pursuant to an automatic shelf registration statement on Form S-3 that was filed by Guardant Health with the U.S. Securities and Exchange Commission (the “SEC”) and automatically became effective upon filing. A prospectus supplement and accompanying prospectus relating to and describing the terms of the offering have been filed with the SEC and are available on the SEC’s website at www.sec.gov. Copies of the prospectus supplement and accompanying prospectus may be obtained by contacting: J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by telephone at (866) 803-9204, or by email at prospectus-eq_fi@jpmchase.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. These statements include statements regarding the anticipated use of the net proceeds from the offering. Such statements are based on current assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties, many of which are beyond Guardant Health’s control, include, among others, the risks described in Guardant Health’s prospectus supplement dated June 1, 2020 and the documents incorporated in the prospectus supplement by reference. These forward-looking statements speak only as of the date hereof and should not be unduly relied upon. Guardant Health disclaims any obligation to update these forward-looking statements, except as required by law.

Investors:
Carrie Mendivil
investors@guardanthealth.com

Media:
Anna Czene
press@guardanthealth.com

FAQ

What is the purpose of Guardant Health's recent share offering?

Guardant Health intends to use the net proceeds for general corporate purposes, including working capital, sales and marketing activities, and capital expenditures.

How many shares did Guardant Health sell in the offering?

Guardant Health sold 4,312,500 shares in the offering, while SoftBank sold 8,912,500 shares.

What was the public offering price per share for Guardant Health?

The public offering price for Guardant Health's shares was $84.00 each.

What are the risks associated with Guardant Health's share offering?

The offering poses dilution risks for existing shareholders and does not provide proceeds to Guardant Health from SoftBank's sale of shares.