NEW YORK – Bionano Genomics said this week that it has entered into a settlement agreement and amendment to its outstanding senior secured convertible debentures to improve its cash runway.
As part of the debt restructuring, the company deferred its December 2024 amortization payment and reduced payments due in January 2025 through July 2025 from $1.0 million per month to $500,000 per month.
In addition, the amendment increased the payments due beginning in August 2025 from $1,000,000 to $1,375,000 per month until the debt is paid in full and lowered the conversion price from $2.00 to $.27. In exchange for the amendment, Bionano agreed to issue the holders of the debt 5,000,000 shares of the company’s common stock.
Bionano said the amendment "strengthens the company's capital structure and improves its near-term liquidity position, enhancing its ability to continue to drive the adoption and utilization of optical genome mapping."
Canaccord Genuity acted as the exclusive financial adviser to Bionano for the amendment.
Separately on Friday, Bionano said it has entered into a definitive agreement with certain undisclosed institutional investors for the purchase and sale of an aggregate of 39,682,540 shares of its common stock and warrants at a combined offering price of $0.252 per share. The company expects gross proceeds of approximately $10 million, which it intends to use, together with existing cash and cash equivalents and available-for-sale securities, for general corporate purposes, including working capital, R&D expenses, repayment or redemption of existing indebtedness, and capital expenditures.
The closing of the offering is expected to occur on or about Jan. 6, 2025, subject to the satisfaction of customary closing conditions. H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering.