Cryoport, Inc., a world-leading temperature-controlled logistics company headquartered in California, dedicated to the life sciences industry, has confirmed the closing of a $25m investment from Petrichor Healthcare Capital Management (Petrichor).
Under the terms of the investment, Petrichor purchased $10m of Cryoport common shares at a price per share of $10.00. In addition, Petrichor has funded a $15m note, which is convertible into Cryoport common shares at a price per share of $13.11, based upon a 20.0% premium to the 15-day VWAP immediately prior to closing. The note has a five-year term and bears cash interest at a rate of the 3-month LIBOR plus 6.0% per annum.
Jerrell Shelton, CEO of Cryoport, said, regarding the transaction, “Petrichor is a premier healthcare-dedicated investment firm who has worked with us to structure this transaction to minimise dilution to our shareholders while providing substantial capital to support our long-term growth strategy. This financing provides capital to further expand the breadth and depth of our solutions offerings in the rapidly developing cell therapy markets and life sciences industry at large, including the pursuit of targeted, strategic acquisitions. Cryoport holds a unique position as the logistical backbone to the cell therapy industry, where we intend to play an increasingly significant and important role. Through discussions with our customers and partners, some of whom are the largest biopharmaceutical companies in the world, it is clear there are unmet and emerging needs in the life sciences marketplaces, representing great opportunities to expand our services and position in the industry, which will further enhance our shareholder value.”
Tadd Wessel, Founder and Managing Partner of Petrichor, said, “We are excited to partner with Cryoport as they begin their next stage of evolution. Cryoport is uniquely positioned in the cell and gene therapy temperature-controlled logistics space, which we believe is poised for considerable expansion. Our investment strengthens Cryoport’s balance sheet and provides management the financial flexibility to capitalise on near term opportunities that build value for shareholders while adding significant scale to Cryoport’s growing business.”
Sir Bruce Keogh, a member of Petrichor’s Advisory Board and recent appointee to the Board of Directors of UK-based non-profit Cell and Gene Therapy (CGT) Catapult, commented, “We are pleased to be investors in Cryoport. We see the company as a leader in the life sciences logistics space at a time of great change and innovation in biopharmaceutical therapy, so this is a welcome addition to our portfolio. We look forward to supporting Cryoport as it implements its organic and acquisition-driven growth strategy.”