Early last week, molecular biology automation solutions leader Telesis Bio Inc. (NASDAQ: TBIO), renowned for its solutions in multi-omics and synthetic biology applications, confirmed today its signing of a securities purchase agreement. A consortium of healthcare-focused institutional investors has pledged to furnish Telesis Bio with an initial upfront payment of $28.0 million as gross proceeds through the private placement of redeemable convertible preferred stock. The agreement also encompasses the issuing of warrants, which, if transacted in cash, will secure an additional $46.2 million in gross proceeds for Telesis Bio.

The financing endeavor is spearheaded by Novalis LifeSciences LLC, with active participation from Northpond Ventures, BroadOak Capital Partners, and M-185 Corporation, which is affiliated with the company's Founder and CEO, Todd R. Nelson, PhD.

As per the Redeemable Convertible Preferred Stock and Warrant Purchase Agreement, upon the successful closure of the financing, Novalis LifeSciences LLC's partner, Paul Meister, will be inaugurated as a member of Telesis Bio's board of directors, augmenting the board size from seven to eight.

CEO and Founder of Telesis Bio, Todd R. Nelson, disclosed, “We are pleased to announce this financing led by Novalis LifeSciences LLC with strong support from existing investors.” He further highlighted Paul Meister's industry experience, asserting that "Paul Meister’s tenure in the industry as a veteran executive and board member at notable companies such as Syneos Health, Fisher Scientific, and ThermoFisher Scientific will be a valuable asset to the shareholders of Telesis Bio as we seek to increase shareholder value and approach profitability in the 2024 timeframe.”

Paul Meister stated, “The company’s innovative BioXp automation solutions are still in the early stages of adoption within targeted discovery workflows, including biologics, cell and gene therapy, and genome engineering. The value proposition to researchers will only continue to increase as the demands within the multi-omics and synthetic biology markets continue.” He expressed gratitude for joining the board and supporting the company's vision.

Todd Nelson also outlined the company's financial expectations, stating, “While we believe strongly in our ability to grow our BioXp installed base and are confident that we can achieve our long-term revenue and profitability goals, we are adjusting expectations for the company’s financial performance for the remainder of 2023, as we continue to see challenging headwinds that may impact our revenue results.” He added, “We now anticipate full-year revenue for the company to be approximately $35 million and operating expenses, including non-cash and one-time charges, to be approximately $55 million. Gross margin expectations of approximately 57% remain unchanged.”