SAN DIEGO, CA – Telesis Bio Inc. (NASDAQ:TBIO), a company specializing in laboratory analytical instruments, announced the completion of the sale of its wholly-owned subsidiary EtonBio, Inc. to individual investor Yuan (Terry) Yang. The transaction, which was finalized on Monday, followed an agreement that had been entered into on August 14, 2024.
The sale is part of Telesis Bio's strategic reorganization and was contingent upon meeting certain regulatory requirements in the State of New Jersey, as well as the resolution of intercompany loans between Telesis and Eton. The company disclosed that these conditions had been satisfied, leading to the successful closure of the deal.
EtonBio, Inc., which was a part of Telesis Bio's broader operations, is now under new ownership. The financial terms of the sale were not disclosed in the press release statement. This divestiture aligns with Telesis Bio's focus on streamlining its business model and concentrating on its core competencies within the laboratory analytical instruments sector.
Telesis Bio, formerly known as Codex DNA, Inc., is incorporated in Delaware and has its principal executive offices located in San Diego, California. The company's common stock is traded on the Nasdaq Global Select Market under the ticker symbol TBIO.
Investors and stakeholders of Telesis Bio may view this sale as a strategic move to optimize the company's portfolio and potentially strengthen its financial position. The completion of this transaction was officially filed with the Securities and Exchange Commission (SEC) on Wednesday, confirming the company's adherence to regulatory requirements and corporate governance standards.
In other recent news, Telesis Bio Inc. has secured $5.85 million through promissory notes, as indicated in its recent 8-K filing with the SEC. The funding, provided by Novalis Lifesciences II, L.P. and Northpond Ventures III, LP, is accompanied by a significant reshuffle in the company's board of directors, expanding from eight to 13 members. This financial maneuver also allowed Telesis Bio to settle its previous debt of roughly $5.84 million with MidCap Financial Trust and MidCap Funding IV.
In addition to the financial changes, Telesis Bio has initiated a reverse stock split, reducing its outstanding common shares from approximately 30.1 million to about 1.7 million. This strategic shift is aimed at complying with Nasdaq's minimum bid price requirement.
In leadership news, Eric Esser, the former President and Chief Operating Officer, has taken over as President and CEO following the departure of founder Todd R. Nelson, Ph.D. The company has also announced a strategic shift towards DNA and mRNA synthesis technology, underlined by a co-development and marketing agreement with a leading automation provider. In an effort to expand its market reach, Telesis Bio has entered into a non-exclusive distribution agreement with Avantor (NYSE:AVTR). These are among the recent developments shaping the company's operations and strategy.
InvestingPro Insights
As Telesis Bio Inc. (NASDAQ:TBIO) finalizes the sale of its subsidiary EtonBio, Inc., it's crucial for investors to consider the company's current financial health and market performance. According to real-time data from InvestingPro, Telesis Bio has a market capitalization of $6.01 million, reflecting its size within the laboratory analytical instruments sector. The company's revenue for the last twelve months as of Q2 2024 stands at $19.57 million, yet it's important to note a significant revenue decline of approximately 29.68% during this period. This contraction is further accentuated by a steep quarterly revenue drop of 77.87% in Q2 2024.
InvestingPro Tips indicate that Telesis Bio operates with a significant debt burden and is quickly burning through cash, which could be a concern for investors eyeing long-term stability. Analysts do not anticipate the company will be profitable this year, and the stock price has been quite volatile, with a notable decline of over 83% in the past year. These factors are essential to consider when assessing the potential impact of the recent sale on the company's future performance.
For a more comprehensive analysis, investors can explore additional insights available on InvestingPro, which includes over ten InvestingPro Tips for Telesis Bio, offering a deeper dive into the company's financial metrics and market expectations.
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