NEW YORK, April 22 (GenomeWeb News) - Solexa today announced it has secured $32.5 million in private-equity financing led by ValueAct Capital of San Francisco.
Solexa said it intends to use the cash to develop and launch its sequencing-by-synthesis instrument, and to repay a loan to Silicon Valley Bank.
All of Solexa's previous venture capital investors, including funds affiliated with Abingworth Management, Amadeus Capital Partners, Oxford Bioscience Partners and SV Life Sciences, will be investing a total of approximately $10.8 million in the financing at the second closing of the financing and have entered into agreements with Solexa to vote in favor of the financing at the 2005 annual meeting, the company said.
Mason Morfit, a partner with ValueAct Capital, which once held 22 percent of Martha Stewart Living Omnimedia, will join Solexa's board.
Terms of the recent financing call for Solexa to sell approximately 8.1 million shares of common stock at $4 per share and will issue warrants to purchase approximately 4.1 million shares at $5 apiece. Approximately 2.1 million shares of common stock and approximately 1.1 million warrants will be issued in a closing expected on April 25, 2005, and the balance of approximately 6 million shares of common stock and warrants to purchase approximately 3 million shares of common stock will be issued on the same terms in a second closing subject to stockholder approval at the 2005 annual meeting.