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Bionano Genomics (NASDAQ:BNGO), Inc., a company specializing in laboratory analytical instruments, has terminated a material definitive agreement with Cowen and Company, LLC. This termination, effective February 14, 2025, was announced today, ending the Sales Agreement initially established on March 23, 2021, and amended on March 9, 2023. According to InvestingPro data, the company faces significant financial challenges, with an EBITDA of -$89.09M in the last twelve months and concerning cash burn rates.
The Sales Agreement enabled Bionano Genomics to sell up to $200 million of its common stock through an "at the market" equity offering program, where Cowen served as the sales agent and/or principal. This program allowed the company to periodically sell shares of its common stock, par value $0.0001 per share, to the public at market prices. The termination comes as the company’s stock has experienced significant volatility, with InvestingPro showing a dramatic 92% decline over the past year, though notably, the stock has shown recent signs of recovery with a 10% gain in the past week.
The company, headquartered in San Diego, California, is known for its role in the industrial applications and services sector, with a focus on developing and marketing proprietary laboratory equipment. Bionano Genomics’ common stock and warrants to purchase common stock are both listed on The Nasdaq Stock Market under the ticker symbols BNGO and BNGOW, respectively.
The decision to terminate the Sales Agreement was disclosed in a Form 8-K filing with the Securities and Exchange Commission. As per the filing, the company provided Cowen with notice of the termination on February 4, 2025, with the termination taking effect ten days later. No further details were provided regarding the reason for the termination or any potential financial impacts.
This move comes as Bionano Genomics continues to navigate the competitive landscape of laboratory analytical instruments. Investors and market watchers will be observing how this termination might influence the company’s financial strategy and stock market performance. InvestingPro subscribers can access detailed analysis including 15+ additional ProTips, comprehensive financial metrics, and expert insights through the Pro Research Report, which provides deep-dive analysis of the company’s financial health and market position.
The information reported is based on a press release statement from Bionano Genomics, Inc. and does not include speculative content or analysis.
In other recent news, Bionano Genomics Inc. has made significant strides in its corporate strategy. The company’s shareholders have approved the issuance of up to 19,762,226 shares of common stock and a reverse stock split. This approval is in compliance with Nasdaq Listing Rule 5635(d), and the exact ratio and timing for the reverse stock split will be determined by the Board of Directors based on market conditions and other factors.
In addition, Bionano Genomics’ shareholders have also approved the issuance of up to 35,026,272 shares of common stock, enabling the exercise of previously issued Series A and Series B warrants. These developments are part of the company’s strategic initiatives to strengthen its financial structure and market position.
On the financial front, Bionano Genomics reported a 35% year-over-year decrease in its third-quarter revenue to $6.1 million, mainly due to a decrease in clinical services. The company’s CEO, Dr. Erik Holmlin, announced significant cost reductions and a strategic shift towards enhancing cash efficiency and consumables growth. Despite the revenue dip, Bionano saw a 22% increase in the installed base of its optical genome mapping (OGM) systems.
In response to these developments, BTIG maintained a neutral stance on Bionano Genomics. The firm projects that Bionano will grow its consumables segment in 2025, yet there remains uncertainty in forecasting the performance of the instrument or services sectors. This lack of clarity on the company’s overall business trajectory has led BTIG to reiterate its neutral rating on BNGO shares.
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