SALT LAKE CITY, Oct. 25, 2022 /PRNewswire/ --
Recursion (NASDAQ: RXRX), the clinical-stage biotechnology
company industrializing drug discovery by decoding biology,
announced today that it has entered into a stock purchase agreement
for the sale of an aggregate of approximately 15.3 million shares
of its Class A common stock in a private placement, led by Kinnevik
AB, with participation by Baillie Gifford, Mubadala Investment
Company, Laurion Capital Management, Invus, and Platinum Asset
Management. The price per share of $9.80 reflects an approximate 7% discount to the
volume weighted average share price of Recursion's Class A common
stock over the five trading days ended on October 24, 2022.
![Recursion Logo Recursion Logo](https://mma.prnewswire.com/media/1440500/Recursion_Logo_2020_Black_Logo.jpg)
Gross proceeds of the private placement are expected to be
approximately $150 million, led by
Kinnevik with a $75 million
investment, before deducting placement agent fees and other
expenses payable by Recursion. Morgan Stanley is acting as lead
placement agent for the private placement. Berenberg, KeyBanc
Capital Markets and Needham & Company are acting as
co-placement agents for the private placement.
Recursion currently intends to use the net proceeds from this
private placement, together with existing cash and cash
equivalents, for general corporate purposes, which may include
strategic investments in advancing of existing clinical and
preclinical programs, including Recursion's new clinical program in
AXIN1/APC mutant cancers with an initial focus in hepatocellular
carcinoma and ovarian cancer for which a Phase 2 trial is being
planned, digital chemistry technologies, automated chemical
microsynthesis technologies, industrialized validation and
translation, and scientific and technical personnel as well as
runway extension and other purposes.
"We are proud to be supported by this esteemed group of new and
existing investors, and delighted to welcome Kinnevik, who have
joined us in our mission as company-building thought partners,"
said Christopher Gibson, Ph.D.,
co-founder and Chief Executive Officer of Recursion. "This
investment shows conviction in our approach as a leader within
technology-enabled drug discovery across our pipeline,
partnerships, and massive relatable datasets which ultimately
enables us to create a more efficient path to new and better
medicines."
Natalie Tydeman, Senior
Investment Director at Kinnevik commented: "Recursion's mission to
decode biology to radically improve lives fits squarely into
Kinnevik's strategy of backing challengers that leverage disruptive
technology to upend whole industries, and builds on Kinnevik's
successful track record of healthcare investing. We look forward to
being long-term partners to Recursion's visionary and ambitious
management team on its journey to advance the future of
medicine."
The securities being issued and sold in the private placement
have not been registered under the Securities Act of 1933, as
amended (the "Securities Act"), or any state's securities laws, and
are being issued and sold pursuant to an exemption from
registration provided for under the Securities Act. The
securities may not be offered or sold in the United States, except pursuant to an
effective registration statement or an applicable exemption from
the registration requirements of the Securities Act. Recursion has
agreed to file a registration statement (or a prospectus supplement
to an effective registration statement on Form S-3ASR) with the
Securities and Exchange Commission ("SEC") registering the resale
of the shares of its Class A common stock issued and sold in the
private placement. This press release shall not constitute an offer
to sell or the solicitation of an offer to buy any securities
described herein, nor shall there be any sale of these securities
in any state or jurisdiction in which such offer, solicitation or
sale would be unlawful prior to the registration or qualification
under the securities laws of any such state or jurisdiction.
About Recursion
Recursion is the clinical-stage biotechnology company
industrializing drug discovery by decoding biology. Enabling its
mission is the RecursionOS, a platform built across diverse
technologies that continuously expands one of the world's largest
proprietary biological and chemical datasets. Recursion leverages
sophisticated machine-learning algorithms to distill from its
dataset a collection of trillions of searchable relationships
across biology and chemistry unconstrained by human bias. By
commanding massive experimental scale — up to millions of wet lab
experiments weekly — and massive computational scale — owning and
operating one of the most powerful supercomputers in the world,
Recursion is uniting technology, biology and chemistry to advance
the future of medicine.
Recursion is headquartered in Salt
Lake City, where it is a founding member of BioHive, the
collective leading the life science industry in Utah. Recursion also has offices in
Toronto, Montreal and the San
Francisco Bay Area. Learn more at www.Recursion.com, or
connect on Twitter and LinkedIn.
Media Contact
Media@Recursion.com
Investor Contact
Investor@Recursion.com
Forward-Looking
Statements
This press release contains information that includes or is
based upon "forward-looking statements" within the meaning of the
Securities Litigation Reform Act of 1995, including, without
limitation, those regarding the closing of the private placement,
registration of the shares of Class A common stock being issued and
sold in the private placement, Recursion's use of the proceeds from
the private placement, Recursion's preclinical and clinical
programs, and all other statements that are not statements of
historical facts. Forward-looking statements may or may not include
identifying words such as "intend," "may," "expect," "plan," and
similar terms. These statements are subject to known or unknown
risks and uncertainties that could cause actual results to differ
materially from those expressed or implied in such statements,
including but not limited to: challenges inherent in pharmaceutical
research and development, including the timing and results of
preclinical and clinical programs, where the risk of failure is
high and failure can occur at any stage prior to or after
regulatory approval due to lack of sufficient efficacy, safety
considerations, or other factors; our ability to leverage and
enhance our drug discovery platform; our ability to obtain
financing for development activities and other corporate purposes;
the success of our collaboration activities; our ability to obtain
regulatory approval of, and ultimately commercialize, drug
candidates; and other risks and uncertainties such as those
described under the heading "Risk Factors" in our filings with the
SEC, including our most recent Quarterly Report on Form 10-Q and
our Annual Report on Form 10-K. All forward-looking statements are
based on management's current estimates, projections, and
assumptions, and Recursion undertakes no obligation to correct or
update any such statements, whether as a result of new information,
future developments, or otherwise, except to the extent required by
applicable law.
Logo -
https://mma.prnewswire.com/media/1440500/Recursion_Logo_2020_Black_Logo.jpg
View original
content:https://www.prnewswire.co.uk/news-releases/recursion-announces-150-million-private-placement-to-new-and-existing-investors-led-by-kinnevik-ab-301658052.html