Bionano Genomics announces amendment to debt financing arrangement

Bionano Genomics has amended the convertible debt financing the company entered into in October 2023 pursuant to which the company agreed to issue and sell to a certain accredited investor in a registered offering by the company $45.0 million aggregate principal amount of senior secured convertible notes due 2025 initially convertible by the Buyer into approximately 15.7 million shares of the company’s common stock, and warrants to purchase up to 21.7 million shares of the company’s common stock, and in a concurrent private placement, $35.0 million aggregate principal amount of senior secured convertible notes due 2025 initially convertible by the Buyer into approximately 12.2 million shares of the company’s common stock. In accordance with the terms of the Notes, the Buyer has, prior to this date, converted $10.0 million of the principal amount of the Initial Registered Note and the company redeemed $18.0 million of the principal of the Initial Private Placement Note. The arrangement announced today, includes the following: Reduction of the minimum available liquidity covenant from $50.0 million to $25.0 million; Reduction of the restricted cash covenant from $35.0 million to $25.0 million, which will be further reduced as the remaining principal on the Initial Registered Note is retired; Cancellation of the March 2024 partial redemption payment and delay of the April 2024 partial redemption payment; Redemption of the outstanding $17.0 million balance of the Initial Private Placement Note; Redemption of approximately $10.7 million of the Initial Registered Note; and Increase of $1.0 million to the Retirement Fee of the Initial Private Placement Note payable concurrently with redemptions of the Initial Private Placement Note. Immediately following the repayments above, there is approximately $24.3 million in aggregate principal amount of the Initial Registered Note outstanding. While working in close collaboration with the Buyer, this arrangement seeks both to expand the capital available to Bionano and to reduce the amount of debt on the company’s balance sheet. All together this arrangement provides immediate access to $30.0 million of near-term liquidity. The company will also have access to up to an additional $25.0 million of liquidity from the restricted cash account that will now be available as the principal on the Notes is retired instead of upon meeting certain funding conditions.