SAN DIEGO, CA – Telesis Bio Inc., a company specializing in laboratory analytical instruments, announced on Monday (NASDAQ:MNDY) that it has entered into promissory notes with two investment firms for a total of $3 million. The notes, bearing a 12% annual interest rate, are due on January 15, 2026.
The lenders, Novalis LifeSciences Investments II, L.P. and Northpond Ventures III, LP, collectively hold more than 10% of Telesis Bio's common stock. The funds provided under the promissory notes will add to the company's financial resources, although the specific purpose of the borrowing was not disclosed in the filing.
Telesis Bio, formerly known as Codex DNA, Inc., is based in San Diego and incorporated in Delaware. The company's fiscal year ends on December 31. Further details regarding the terms of the promissory notes will be made available in the company's forthcoming Annual Report on Form 10-K for the year ending December 31, 2024.
The transaction was officially filed with the Securities and Exchange Commission today, and the information is based on a press release statement. This financial move comes as Telesis Bio continues to navigate the competitive landscape of the analytical instruments sector.
In other recent news, Telesis Bio Inc. has announced the forthcoming departure of its Chief Legal Officer, Robert H. Cutler. As per the company's 8-K filing with the Securities and Exchange Commission, Cutler's departure will be effective from October 31, 2024. The company, based in San Diego, California, has agreed upon a separation package with Cutler, which includes a severance pay of $307,500, equivalent to nine months of his current salary. This amount will be paid in regular payroll installments unless the company secures $4 million in financing or other specified means, which would then trigger a lump-sum payment. Cutler will also receive continued COBRA premium benefits valued at $23,596.88 for nine months.
In addition to this, Cutler has agreed to sign a general release in favor of Telesis Bio and is expected to enter into a consulting agreement to assist with the transition of his duties. The full terms of the separation agreement will be detailed in the company's Annual Report on Form 10-K for the year ending December 31, 2024.
InvestingPro Insights
Telesis Bio's recent $3 million borrowing through promissory notes comes at a critical time for the company, as revealed by InvestingPro data. The company's revenue has seen a significant decline, with a 71.85% drop in quarterly revenue as of Q3 2024. This sharp decrease in revenue might explain the need for additional funding through the promissory notes.
Despite the revenue challenges, Telesis Bio maintains a gross profit margin of 48.32% for the last twelve months as of Q3 2024, indicating some resilience in its core business model. However, the company's operating income margin stands at a concerning -181.35% for the same period, suggesting substantial operational challenges.
InvestingPro Tips highlight that Telesis Bio "suffers from weak gross profit margins" and "does not pay a dividend to shareholders," which aligns with the company's current financial position and the need for additional funding. These insights, along with 2 more tips available on InvestingPro, provide valuable context to the company's recent financial decisions.
The stock's performance has been notably weak, with a one-year price total return of -92.03% as of the latest data. This decline in stock value, coupled with the recent borrowing, underscores the financial pressures Telesis Bio is facing.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and metrics that could provide further insight into Telesis Bio's financial health and future prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.