Mesa Laboratories, Inc. Reports Immaterial Financial Exposure to Silicon Valley Bank Closure

Rhea-AI Summary

Mesa Laboratories (NASDAQ:MLAB) has addressed the recent closure of Silicon Valley Bank, which has been placed under FDIC control. As of March 13, 2023, depositors can access their funds. Mesa reports that its cash and cash equivalents, totaling $26.1 million as of December 31, 2022, are securely held across multiple large financial institutions, mitigating risks associated with SVB. The company maintains that its cash flow and existing balance are adequate for ongoing working capital needs and contractual obligations. Mesa has minimal exposure with SVB, with deposits exceeding FDIC limits being under $500,000.

Positive

• Mesa's total cash and cash equivalents were $26.1 million as of December 31, 2022.
• Existing cash flow is considered sufficient for working capital needs.

Negative

• Mesa has exposure to SVB, with deposits exceeding FDIC limits being less than $500,000.

LAKEWOOD, Colo., March 13, 2023 (GLOBE NEWSWIRE) -- Mesa Laboratories, Inc. (NASDAQ:MLAB) (“Mesa” or the “Company”) is a global leader in the design and manufacture of life science tools and critical quality control solutions. Mesa has monitored the situation at Silicon Valley Bank (“SVB”), whereby on March 10, 2023, the California Department of Financial Protection and Innovation closed SVB and placed it under control of the United States Federal Deposit Insurance Corporation (“FDIC”) as receiver.  According to the FDIC,  depositors will have access to all of their money starting Monday, March 13, 2023.

Mesa has taken proactive steps to mitigate risk to the Company, which continues to believe that its existing cash and cash equivalents balance and cash flow from operations will be sufficient to meet its working capital, capital expenditures, and material cash requirements from known contractual obligations for the foreseeable future.

Mesa’s deposit accounts held at SVB in excess of the $250,000 FDIC-insured limits are less than $500,000. Mesa believes this is immaterial when compared to the Company’s total balance of cash and cash equivalents which were $26.1 million as of December 31, 2022 and are held on deposit at multiple large financial institutions across the world. Other than the deposit accounts noted, Mesa has no material positions or relationships with SVB.

About Mesa Laboratories, Inc.

Mesa is a global leader in the design and manufacturing of life science tools and critical quality control solutions for regulated applications in the pharmaceutical, healthcare and medical device industries.  Mesa offers products and services through four divisions (Sterilization and Disinfection Control, Biopharmaceutical Development, Clinical Genomics, and Calibration Solutions) to help our customers ensure product integrity, increase patient and worker safety, and improve the quality of life throughout the world.

FAQ

What recent event impacted Mesa Laboratories?

Mesa addressed the closure of Silicon Valley Bank, which was placed under FDIC control on March 10, 2023.

How much cash does Mesa Laboratories have?

As of December 31, 2022, Mesa Laboratories reported total cash and cash equivalents of $26.1 million.

Is Mesa Laboratories at risk with Silicon Valley Bank?

Mesa has minimal exposure to SVB, with deposits over FDIC insurance limits being less than $500,000.

What measures is Mesa Laboratories taking for financial security?

Mesa believes its cash flow and existing balances are sufficient to meet working capital and material cash requirements.