SAN DIEGO, CA - Bionano Genomics , Inc. (NASDAQ:BNGO), whose stock has declined over 84% in the past year according to InvestingPro data, announced today that its stockholders have approved a significant share issuance, enabling the exercise of previously issued warrants, as disclosed in a recent 8-K filing with the Securities and Exchange Commission.
The approval came during the company's 2024 Special Meeting of Stockholders, which took place on Thursday, following two prior adjournments on October 2 and October 30 due to a lack of quorum. On the record date of August 12, there were 85,997,130 shares outstanding entitled to vote.
The company, currently valued at approximately $26 million in market capitalization, has been facing significant financial challenges with an EBITDA of -$89 million over the last twelve months.
At the Special Meeting, approximately 35.42% of the outstanding shares were represented in person, virtually, or by proxy. The primary agenda item was the approval of the issuance of up to 35,026,272 shares of common stock upon the exercise of Series A and Series B warrants. These warrants were part of a private placement agreement dated July 4, with certain institutional investors.
The proposal to issue shares was passed with 22,919,968 votes in favor, 6,162,679 against, and 1,385,117 abstentions. This approval is in compliance with Nasdaq Listing Rule 5635(d), which requires shareholder approval for such exercises of warrants when the number of shares to be issued could potentially be substantial.
Bionano Genomics, a company specializing in laboratory analytical instruments, is headquartered in San Diego, California, and operates under the leadership of President and CEO R. Erik Holmlin, Ph.D. The company's core focus is on providing tools and services based on its proprietary Saphyr system for researchers conducting genetic research and patient testing.
This recent development is expected to provide the company with additional capital, assuming the warrants are exercised. The information regarding this shareholder approval is based on the company's official statement in the 8-K filing.
In other recent news, Bionano Genomics has reported a 35% year-over-year decrease in its Q3 revenue, with earnings dropping to $6.1 million, primarily due to a decrease in clinical services. Despite this, the company experienced a 22% increase in the installed base of its optical genome mapping (OGM) systems.
Analyst firm BTIG has maintained a neutral stance on Bionano Genomics shares, following the company's Q3 performance and strategic shift towards boosting consumable sales and cost reductions.
This shift has led to a significant 35% increase in consumable sales, while instrument and services revenue streams have seen substantial declines. The company, with $23 million in cash reserves at the end of Q3, is exploring options to fortify its financial position.
Bionano Genomics is also focusing on the adoption of its VIA software and is planning for the full rollout of the Ionic sample prep system in 2024. The company's Q4 revenue is projected to range between $6 million and $7 million, with full-year revenue estimated at $28 million to $30 million.
Despite challenges posed by decreased valuation of spare parts and inventory and slower growth due to expense reductions, Bionano remains optimistic about the growth of consumables in 2025 and the upcoming rollout of the Ionic sample prep system.
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