Pacific Biosciences of California, Inc. Announces Proposed Public Offering of Common Stock

Rhea-AI Summary

Pacific Biosciences of California (NASDAQ: PACB) plans to offer $150.0 million in common stock through an underwritten public offering, with an additional $22.5 million option for underwriters. Proceeds will support research and development, expand commercial infrastructure, and cover general corporate expenses. The offering is subject to market conditions and is filed under a shelf registration statement with the SEC. Notably, there are no current commitments for additional acquisitions despite the potential for investing in complementary businesses and technologies.

Positive

• Intends to use proceeds for R&D and infrastructure expansion.
• Ability to raise up to an additional $22.5 million if underwriters exercise their option.

Negative

• Possible shareholder dilution due to public offering.

MENLO PARK, Calif., Jan. 24, 2023 /PRNewswire/ -- Pacific Biosciences of California, Inc. (Nasdaq: PACB) ("PacBio") today announced that it intends to offer and sell $150.0 million of shares of its common stock in an underwritten public offering. PacBio also intends to grant the underwriters a 30-day option to purchase up to an additional $22.5 million of shares of its common stock, at the public offering price, less underwriting discounts and commissions. The proposed offering is subject to market and other conditions and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.

Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Cowen and Company, LLC and Allen & Company LLC are acting as Joint Book Running managers for the offering.

PacBio intends to use the net proceeds from the offering for research and development, commercial infrastructure expansion and working capital and general corporate purposes. PacBio may also use a portion of the net proceeds from this offering to acquire or invest in complementary businesses, technologies, product candidates or other intellectual property, although it has no present commitments or agreements to do so.

The securities described above are being offered pursuant to a shelf registration statement filed by PacBio with the Securities and Exchange Commission ("SEC") that became automatically effective upon filing. A preliminary prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC and will be available on the SEC's website. The final terms of the offering will be disclosed in a final prospectus supplement to be filed with the SEC. When available, copies of the preliminary prospectus supplement, the final prospectus supplement and the accompanying prospectus may be obtained from:

Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, New York 10282, telephone: (866) 471-2526, facsimile: 212-902-9316 or by emailing prospectusny@ny.email.gs.com; Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, New York 10014, telephone: (866) 718-1649 or by emailing prospectus@morganstanley.com; or Cowen and Company, LLC, 599 Lexington Avenue, New York, NY 10022, telephone: (833) 297-2926 or by emailing Prospectus_ECM@cowen.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 registration or qualification under the securities laws of any such state or other jurisdiction. Any offer, if at all, will be made only by means of the prospectus supplement and accompanying prospectus.

About PacBio

Pacific Biosciences of California, Inc. (NASDAQ: PACB) is a premier life science technology company that is designing, developing, and manufacturing advanced sequencing solutions to help scientists and clinical researchers resolve genetically complex problems.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. These statements involve risks and uncertainties that could cause actual results to differ materially, including, but not limited to, whether or not PacBio will be able to raise capital through the sale of shares of common stock or consummate the offering, the final terms of the offering, the satisfaction of customary closing conditions, prevailing market conditions, the anticipated use of the proceeds of the offering which could change as a result of market conditions or for other reasons, and the impact of general economic, industry or political conditions in the United States or internationally. Additional risks and uncertainties relating to the offering, PacBio and its business can be found under the heading "Risk Factors" in PacBio's most recent current, quarterly and annual reports filed with the SEC and in the preliminary prospectus supplement and accompanying prospectus relating to the offering to be filed with the SEC. PacBio assumes no duty or obligation to update or revise any forward-looking statements except as required by law.

Contact:
Investors: Todd Friedman
650.521.8450
ir@pacb.com

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SOURCE Pacific Biosciences of California, Inc.

FAQ

What is Pacific Biosciences planning with the offering on January 24, 2023?

Pacific Biosciences intends to offer $150 million in common stock to fund research and development and commercial infrastructure.

How much additional stock can underwriters purchase in the PACB offering?

Underwriters have the option to purchase an additional $22.5 million in shares.

What will the proceeds from PACB's stock offering be used for?

The proceeds will support R&D, infrastructure expansion, and may also be used for general corporate purposes.

What are the risks associated with PACB's stock offering?

Risks include potential shareholder dilution and uncertainty in closing the offering based on market conditions.