Hercules Capital Proudly Announces Eight Portfolio Companies Have Completed or Announced an IPO or M&A Liquidity Event Year-t...
July 11 2018 - 7:55AM
Business Wire
- Hercules’ Leading Originations Platform
Continues to Finance Some of the Most Promising Innovative and
Disruptive Venture-Backed Companies in the Market
Hercules Capital, Inc. (NYSE: HTGC) (“Hercules” or the
“Company”), the leading specialty financing provider to innovative
venture growth stage companies backed by leading venture capital
firms, is pleased to announce the latest liquidity events for eight
(8) of its portfolio companies: DocuSign, Inc., Tricida, Inc. and
BridgeBio Inc./Eidos Therapeutics, Inc., which recently completed
their initial public offerings (“IPO”); and Inotek Pharmaceuticals
Corporation, Neothetics, Inc., IntegenX Inc., FanDuel and
RazorGator, Inc., all of which recently completed or announced a
merger or acquisition.
IPO Events
- In April 2018, Hercules’ portfolio
company, DocuSign Inc. (NASDAQ: DOCU), a company that
provides electronic signature technology and digital transaction
management services for facilitating electronic exchanges of
contracts and signed documents, completed its IPO debut raising
approximately $725.0 million pricing 25.0 million shares at $29 per
share.Hercules currently holds 385,000 shares of common stock at
$15.79 per share as of March 31, 2018, representing an unrealized
gain of approximately $15.2 million and $0.18 in Net Asset Value
increase, based on the closing price of $55.35 for DocuSign
on July 9, 2018. The unrealized gain may increase or decrease as
the stock price of DocuSign moves up or down from its
closing price on July 9, 2018, thereby impacting Hercules’ eventual
realized gain or (loss).
- In June 2018, Hercules’ portfolio
company, Tricida, Inc. (NASDAQ: TCDA), a late-stage
pharmaceutical company focused on the development and
commercialization of its lead product candidate, TRC101, a
non-absorbed, orally-administered polymer drug design to treat
metabolic acidosis in patients with chronic kidney disease,
completed its IPO raising approximately $255.6 million pricing 13.5
million shares at $19.00 per share.Hercules initially committed
$75.0 million in venture debt financing in February 2018. Hercules
currently holds warrants for 53,458 shares of common stock and
holds 105,260 shares of common stock as of June 30, 2018, and has a
potential unrealized gain of approximately $1.9 million, based on
the closing price of $30.50 for Tricida on July 9, 2018. The
unrealized gain may increase or decrease as the stock price of
Tricida moves up or down from its closing price on July 9,
2018, thereby impacting Hercules’ eventual realized gain or
(loss).
- In June 2018, Hercules’ portfolio
company, Eidos Therapeutics, Inc. (NASDAQ: EIDX), a clinical
stage biopharmaceutical company focused on addressing the large and
growing unmet need in disease caused by amyloidosis, which is a
majority-owned subsidiary of Hercules’ portfolio company,
BridgeBio Inc., a clinical-stage biotech company developing
novel, genetically targeted therapies to improve the lives of
patients, completed its IPO raising approximately $122.2 million
pricing 7.2 million shares of common stock at $17.00 per
share.Hercules currently holds 15,000 shares of common stock as of
as of July 9, 2018 and has a potential unrealized gain of
approximately $142,000 based on the closing stock price of $22.76
for Eidos on July 9, 2018. The unrealized gain may increase
or decrease as the stock price of Eidos moves up or down
from its closing price on July 9, 2018, thereby impacting Hercules’
eventual realized gain or (loss).
Realized Gain Events
- In October 2017, Hercules’ portfolio
company ForeScout Technologies, Inc. (NASDAQ: FSCT), a
leading Internet of Things security company, completed its IPO.
Hercules held 199,842 shares of common stock, as of March 31,
2018.Subsequent to March 31, 2018, Hercules liquidated its entire
position in ForeScout and recognized a net realized gain of
approximately $5.7 million from the IPO.
- In July 2018, Hercules’ portfolio
company FanDuel, a leading U.S. daily fantasy sports
operator, was acquired by Paddy Power Betfair plc (LON: PPB), an
international, multi-channel sports betting and gaming operator,
and combined with Paddy Power’s U.S. business (Betfair US). Under
the agreement, the cash contribution was used to pay down existing
FanDuel debt and fund working capital of the new combined
businesses.Hercules initially committed $20.0 million in venture
debt financing, including $1.0 million in convertible debt, in
October 2016, and held warrants for 15,570 shares of common stock
and 4,648 shares of Preferred Series A stock as of March 31, 2018.
Subsequent to the close of the transaction, Hercules’ term loan was
paid off in full, along with the convertible debt and warrants. The
potential realized gain from the transaction is approximately $1.7
million.
Portfolio Companies IPO Filings
As of July 9, 2018, Hercules held warrant and equity positions
in two (2) portfolio companies that had filed confidential
Registration Statements under the JOBS Act with the Securities and
Exchange Commission in contemplation of a potential IPO. There can
be no assurances that companies that have yet to complete their
IPOs will do so.
Potential Liquidity Events
Hercules holds equity and warrant positions in 53 and 134
portfolio companies, respectively, as of March 31, 2018,
representing potential future additional returns to investors.
There can be no assurances that all companies may complete their
initial public offering or complete an M&A event.
M&A Events Announced or Completed
- In January 2018, Hercules’ portfolio
company Inotek Pharmaceuticals Corporation (NASDAQ: ITEK), a
clinical-stage biopharmaceutical company focused on the discovery,
development and commercialization of therapies for ocular diseases,
completed their merger agreement with Rocket Pharmaceuticals Ltd.
(NASDAQ: RCKT), a leading US-based gene therapy company. The
combined company operates under Rocket Pharmaceuticals, Inc.
(NASDAQ: RCKT).Hercules committed $1.5 million in venture debt
financing to Inotek in August 2007 and held 944 shares of common
stock as of March 31, 2018.
- In January 2018, Hercules’ portfolio
company Neothetics, Inc. (NASDAQ: NEOT) a clinical-stage
specialty pharmaceutical company that has been focused on
developing therapeutics for the aesthetic market, completed their
merger agreement with privately-held Evofem Biosciences, Inc., a
wholly-owned subsidiary of Neothetics. in an all-stock transaction.
In January 2018, Evofem completed the reverse merger acquisition of
Neothetics. The merged company is now operating as Evofem
Biosciences, Inc. (NASDAQ: EVFM).Hercules initially committed $10.0
million in venture debt financing in June 2014, and currently holds
warrants for 7,806 shares of common stock as of March 31,
2018.
- In March 2018, Hercules’ portfolio
company IntegenX Inc., the market leader of rapid human DNA
identification technology for use in forensics and law enforcement
applications, was acquired by Thermo Fisher Scientific Inc., the
world leader in serving science. Terms of the transaction were not
disclosed.Hercules initially committed $17.5 million in venture
debt financing in June 2016.
- In May 2018, Hercules’ portfolio
company RazorGator Inc., an online ticket reselling platform
for sports, theater and concert tickets, and vacation packages for
sporting events, was acquired by TickPick, an online ticket
marketplace to buy, bid on and sell tickets on sports, concerts and
other live events. Terms of the transaction were not
disclosed.Hercules initially committed $5.0 million in venture debt
financing in January 2005, and currently holds 34,783 shares of
Preferred Series AA stock as of March 31, 2018.
About Hercules Capital, Inc.
Hercules Capital, Inc. (NYSE: HTGC) (“Hercules”) is the leading
and largest specialty finance company focused on providing senior
secured venture growth loans to high-growth, innovative venture
capital-backed companies in a broad variety of technology, life
sciences and sustainable and renewable technology industries. Since
inception (December 2003), Hercules has committed more than $7.6
billion to over 420 companies and is the lender of choice for
entrepreneurs and venture capital firms seeking growth capital
financing. Companies interested in learning more about financing
opportunities should contact info@htgc.com, or call
650.289.3060.
Hercules’ common stock trades on the New York Stock Exchange
(NYSE) under the ticker symbol "HTGC." In addition, Hercules has
four outstanding bond issuances of 6.25% Notes due 2024 (NYSE:
HTGX), 4.375% Convertible Notes due 2022, 4.625% Notes due October
2022 and 5.25% Notes due 2025 (NYSE: HCXZ).
Forward-Looking Statements
This press release may contain “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act
of 1995. You should understand that under Section 27A(b)(2)(B) of
the Securities Act of 1933, as amended, and Section 21E(b)(2)(B) of
the Securities Exchange Act of 1934, as amended, or the Exchange
Act, the “safe harbor” provisions of the Private Securities
Litigation Reform Act of 1995 do not apply to forward-looking
statements made in periodic reports we file under the Exchange
Act.
The information disclosed in this press release is made as of
the date hereof and reflects Hercules most current assessment of
its historical financial performance. Actual financial results
filed with the SEC may differ from those contained herein due to
timing delays between the date of this release and confirmation of
final audit results. These forward-looking statements are not
guarantees of future performance and are subject to uncertainties
and other factors that could cause actual results to differ
materially from those expressed in the forward-looking statements
including, without limitation, the risks, uncertainties, including
the uncertainties surrounding the current market volatility, and
other factors the Company identifies from time to time in its
filings with the SEC. Although Hercules believes that the
assumptions on which these forward-looking statements are based are
reasonable, any of those assumptions could prove to be inaccurate
and, as a result, the forward-looking statements based on those
assumptions also could be incorrect. You should not place undue
reliance on these forward-looking statements. The forward-looking
statements contained in this release are made as of the date
hereof, and Hercules assumes no obligation to update the
forward-looking statements for subsequent events.
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version on businesswire.com: https://www.businesswire.com/news/home/20180711005467/en/
Hercules Capital, Inc.Michael Hara, 650-433-5578Investor
Relations and Corporate Communicationsmhara@htgc.com
Hercules Capital (NYSE:HTGC)
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