Kronos Bio ends lease early, pays $1.4 million settlement

Published 10/04/2025, 22:10
Kronos Bio ends lease early, pays $1.4 million settlement

SAN MATEO, CA - Kronos Bio, Inc., a pharmaceutical company currently valued at $47 million, has terminated its headquarters lease agreement ahead of schedule, according to a recent SEC filing. The original lease, dated July 19, 2018, for the corporate headquarters located at 1300 South El Camino Real, Suite 400, San Mateo, California, was supposed to expire on August 31, 2026. However, the company reached a Lease Termination Agreement with MPVCA San Mateo LLC on Monday, resulting in an early termination effective April 30, 2025. According to InvestingPro analysis, the company maintains strong liquidity with a current ratio of 7.54, though it's currently experiencing rapid cash burn.

Under the terms of the Termination Agreement, Kronos Bio has agreed to pay approximately $1.4 million, after accounting for a $0.1 million security deposit, to the landlord. This payment is in lieu of the aggregate base rent of $1.6 million that would have been due from the Early Termination Date through the original lease expiration date. The company's strong cash position relative to debt, as highlighted by InvestingPro, suggests adequate financial flexibility for this settlement.

This strategic move by Kronos Bio, whose common stock is traded on The Nasdaq Stock Market under the ticker (NASDAQ:KRON), is detailed in the 8-K form filed with the SEC on Thursday. The document outlines the company's decision and the financial implications of the lease termination.

The termination of the lease agreement is a significant financial transaction for Kronos Bio, as it involves a substantial settlement payment. The company has not publicly disclosed the reasons behind the early termination or its plans for a new corporate headquarters location.

This development comes as the latest update from Kronos Bio, which operates under the pharmaceutical preparations industry, as classified by the Standard Industrial Classification. The information provided in this article is based on the statements made in the SEC filing by Kronos Bio, Inc.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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