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Bionano Genomics Prices $80M Financing; Announces Cost-Cutting Measures, Preliminary Q3 Revenues

NEW YORK – Bionano Genomics said on Wednesday that it has priced an $80.0 million financing in convertible notes and warrants while announcing further cost-cutting measures and Q3 2023 preliminary revenues.

The $80.0 million financing includes $45.0 million of senior secured convertible notes due 2025 and warrants to purchase 21,660,650 shares of its common stock in a registered offering. It also includes $35.0 million of senior secured convertible notes due 2025 in a concurrent private placement.

The sale of the notes and the registered warrants is expected to close on Oct. 13, subject to customary closing conditions, the company noted. It also granted the buyer an option to purchase up to an additional $25.0 million of senior secured notes due 2025 and warrants to purchase up to 6,768,953 shares of common stock in a subsequent private placement.

Bionano also said it "committed to a series of cost-savings initiatives" earlier this week including a workforce reduction, as reported by GenomeWeb, and shrinking facility costs and discretionary spending unrelated to headcount.

The workforce reduction eliminated 66 jobs, which, together with other positions eliminated in May, is expected to lower the number of employees to 321 by Dec. 31.

The cost-saving initiatives announced in May and this month are expected to reduce the operating expenses of the company by approximately $31.6 million on an annualized basis starting in 2024, Bionano said.

"Reducing our operating expense footprint is something that we felt was important to do," Bionano CFO Gülsen Kama said in a statement. "[W]e believe these steps were necessary to implement alongside the financing to reduce the overall capital needed to reach profitability."

The San Diego-based optical genome mapping company also announced preliminary financial results for Q3. For the three months ending Sept. 30, the firm expects its revenues to be in the range of $9.1 million to $9.3 million, representing an increase of 26 percent to 29 percent year over year. This would be at the higher end of the revenue guidance of $8.8 million to $9.2 million the firm previously provided in August.

The installed base of Saphyr instruments rose to 301 by the end of Q3, the company said, an increase of 20 systems over the previous quarter and a 39 percent increase over the 217 installed systems reported during the same period last year.

Meanwhile, the company sold an estimated 6,176 nanochannel array flow cells during the quarter, an increase of 55 percent over the 3,975 flow cells sold during Q3 2022.