NEW YORK – Synthetic biology firm Telesis Bio said Wednesday that it has entered into a private stock purchase agreement to raise up to $21 million.
The financing was led by Novalis LifeSciences and Northpond Ventures. Telesis Bio said it plans to use the money raised to accelerate adoption of its recently launched Gibson SOLA technology for enzymatic DNA and mRNA synthesis.
Through the purchase agreement, Telesis Bio said it will issue and sell shares of a new series of convertible preferred stock in a private placement through two closings. The initial tranche includes the sale and issuance of approximately $17 million in shares of convertible stock, of which $8 million was tied to cash infusion and $9 million related to conversion of outstanding debt into convertible stock, according to the company.
The second tranche is expected to include the sale and issuance of $4 million in shares of convertible preferred stock, subject to the company board's approval. The firm said it expects the second tranche to close on or before March 6, 2026.
As a condition to the private placement, the holders of the company’s redeemable convertible preferred stock consented to convert their securities into common stock, and certain holders of warrants exercisable for the company’s securities consented to terminate such warrants.
“This financing gives us a strong balance sheet with no debt and sufficient capital to reach cash-flow breakeven while continuing to serve existing customers and expanding adoption of this next-generation platform,” Telesis Bio President and CEO Eric Esser said in a statement.
Based in San Diego, Telesis Bio, formerly known as Codex DNA, previously developed a proprietary enzymatic DNA synthesis method called short oligo ligation assembly enzymatic DNA synthesis (SOLA EDS). The method leverages Gibson assembly, an enzymatic method pioneered by Chief Technology Officer Dan Gibson.