UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. )*
HTG Molecular Diagnostics, Inc.
(Name of Issuer)
Common Stock, par value $0.001 per share
(Title of Class of Securities)
40434H 10 4
(CUSIP Number)
Bjarne Graven Larsen
Novo A/S
Tuborg Havnevej 19
Hellerup, Denmark DK-2900
+45 3527 6592
Copy to:
B. Shayne Kennedy, Esq.
Latham & Watkins LLP
650 Town Center Drive, 20th Floor
Costa Mesa, CA 92626
Telephone: (714) 540-1235
(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)
May 11, 2015
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report the acquisition which is subject of this Schedule 13D, and is filing this statement because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following box. ¨
Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Rule 13d-7(b) for other parties to whom copies are to be sent.
* | The remainder of this cover page shall be filled out for a reporting persons initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page. |
The information required on the remainder of this cover page shall not be deemed to be filed for the purpose of Section 18 of the Securities Exchange Act of 1934 (the Act) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).
CUSIP No.: 40434H 10 4 |
1. | Name of Reporting Person:
Novo A/S | |||||
2. | Check the Appropriate Box if a Member of Group (See Instructions): (a) ¨ (b) x
| |||||
3. | SEC Use Only:
| |||||
4. | Source of Funds:
WC | |||||
5. | Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e):
¨ | |||||
6. | Citizenship or Place of Organization:
Denmark | |||||
Number of Shares Beneficially Owned By Each Reporting Person With:
|
7. | Sole Voting Power:
1,280,185 | ||||
8. | Shared Voting Power:
0 | |||||
9. | Sole Dispositive Power:
1,280,185 | |||||
10. | Shared Dispositive Power:
0 | |||||
11. |
Aggregate Amount Beneficially Owned by Each Reporting Person:
1,280,185 | |||||
12. | Check if the Aggregate Amount in Row (11) Excludes Certain Shares:
¨ | |||||
13. | Percent of Class Represented By Amount In Row (11):
19.0% (1) | |||||
14. | Type of Reporting Person:
CO |
(1) | Based upon 6,735,965 shares of the Issuers Common Stock outstanding as reported in the Issuers prospectus (Form 424B4) filed with the Securities and Exchange Commission on May 6, 2015. |
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Item 1. | Security and Issuer |
This Schedule 13D relates to the shares of common stock, par value $0.001 per share (the Common Stock), of HTG Molecular Diagnostics, Inc., a Delaware corporation (the Issuer). The Issuers principal executive office is located at 3430 E. Global Loop, Tucson, Arizona 85706.
Item 2. | Identity and Background |
(a) | The name of the reporting person is Novo A/S, a Danish limited liability company that is wholly owned by Novo Nordisk Fonden (the Foundation), a Danish commercial foundation. Novo A/S is the holding company in the group of Novo companies (currently comprised of Novo Nordisk A/S, Novozymes A/S and NNIT A/S) and is responsible for managing the Foundations assets, including its financial assets. Based on the governance structure of Novo A/S and the Foundation, the Foundation is not deemed to have any beneficial ownership of the securities of the Issuer held by Novo A/S. |
The name of each director and executive officer of both Novo A/S and the Foundation is set forth on Schedule I to this Schedule 13D. |
(b) | The business address of both Novo A/S and the Foundation is Tuborg Havnevej 19, 2900 Hellerup, Denmark. |
The residence or business address of each director and executive officer of both Novo A/S and the Foundation is set forth on Schedule I to this Schedule 13D. |
(c) | Novo A/S, a holding company that is responsible for managing the Foundations assets, provides seed and venture capital to development stage companies and invests in well-established companies within the life science and biotechnology sector. |
The Foundation is a Danish self-governing and profit-making foundation, whose objectives are to provide a stable basis for commercial and research activities undertaken by the group of Novo companies and to support scientific, humanitarian and social purposes through grants. |
(d) | Within the last five years, neither Novo A/S, the Foundation, nor any person named in Schedule I has been convicted in any criminal proceedings. |
(e) | Within the last five years, neither Novo A/S, the Foundation, nor any person named in Schedule I was a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws. |
Item 3. | Source and Amount of Funds or Other Consideration |
Prior to the Issuers initial public offering (the IPO), the Reporting Person held the following securities of the Issuer:
(i) | 50,251,254 shares of Series D Preferred Stock (the Series D Preferred Stock) acquired at a purchase price of $0.2189 per share for an aggregate purchase price of $11.0 million in a private placement. Upon the IPO closing, the Series D Preferred Stock automatically converted on a one-for-one basis for no additional consideration into 598,415 shares of Common Stock which included shares issued as payment for accrued dividends on the Series D Preferred Stock, as adjusted for the 1-for-107.39 reverse split (the Stock Split) of the Issuers Common Stock effected on April 27, 2015. |
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(ii) | 15,227,653 shares of Series E Preferred Stock (the Series E Preferred Stock and, collectively, with the Series D Preferred Stock, the Preferred Stock) acquired at a purchase price of $0.2189 per share for an aggregate purchase price of $3,333,333 million in a private placement. Upon the IPO closing, the Series E Preferred Stock automatically converted on a one-for-one basis for no additional consideration into 156,123 shares of Common Stock which included shares issued as payment for accrued dividends on the Series E Preferred Stock, as adjusted for the Stock Split. |
(iii) | Warrants (the Warrants) for the right to purchase Series E Preferred Stock at a purchase price of $0.2189 per share for an aggregate purchase price of $697,015 (the Principal Warrant Coverage Amount). Upon the IPO closing, the Warrants automatically converted into 49,786 shares of Common Stock (the Principal Warrant Coverage Amount divided by $14.00 (the IPO Per Share Price). |
(iv) | Convertible Promissory Notes (the Notes) in the aggregate principal amount of $1,535,440. Upon the IPO closing, the principal and accrued and unpaid interest on the Notes (the Note Conversion Amount) automatically converted into 110,755 shares of Common Stock (the Note Conversion Amount divided by the IPO Per Share Price). |
The purchase price of the Preferred Stock, Warrants and Notes were paid by Novo A/S from its working capital.
On May 11, 2015, the closing date of the IPO:
(i) | the Reporting Person held an aggregate of 915,079 shares of Common Stock after conversion of the Preferred Stock, Warrants and Notes (the Converted Shares); and |
(ii) | the Reporting Person purchased 365,106 additional shares of Common Stock from the underwriters (the IPO Shares) at the IPO Per Share Price pursuant to the provisions of the Underwriting Agreement among the Issuer and the several underwriters for the offering (the Underwriters) which, with the Converted Shares, resulted in a total of 1,280,185 shares of Common Stock held by Novo A/S. The purchase price of the IPO Shares was paid by Novo A/S from its working capital. |
Item 4. | Purpose of Transaction |
The acquisitions of Issuer securities made by Novo A/S, as described in this Schedule 13D, were for investment purposes. Novo A/S intends to review its investments in the Issuer on a continuing basis and any actions Novo A/S might undertake will be dependent upon its review of numerous factors, including, but not limited to: an ongoing evaluation of the Issuers business, financial condition, operations and prospects; price levels of the Issuers securities; general market, industry and economic conditions; the relative attractiveness of alternative business and investment opportunities; and other future developments. Novo A/S may, at any time and from time to time, acquire additional securities of the Issuer, or retain or sell all or a portion of the securities of the Issuer then held, in the open market or in privately negotiated transactions. Other than as described herein, Novo A/S currently does not have any plans or proposals that relate to, or would result in, any of the matters listed in Items 4(a)(j) of Schedule 13D, although, depending on the factors discussed herein, Novo A/S may change its purpose or formulate different plans or proposals with respect thereto at any time.
Item 5. | Interest in Securities of the Issuer |
(a) Novo A/S beneficially owns 1,280,185 shares (the Novo Shares) of Common Stock representing approximately 19.0% of the Issuers outstanding Common Stock, upon 6,735,965 shares of the Issuers Common Stock outstanding as reported in the Issuers prospectus (Form 424B4) filed with the Securities and Exchange Commission on May 6, 2015.
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(b) Novo A/S is a Danish limited liability company wholly owned by the Novo Nordisk Foundation. Novo A/S, through its Board of Directors (the Novo Board), has the sole power to vote and dispose of the Novo Shares. The Novo Board, currently comprised of Sten Scheibye, Goran Ando, Jeppe Christiansen, Steen Riisgaard and Per Wold-Olsen, may exercise voting and dispositive control over the Novo Shares only with the support of a majority of the Novo Board. As such, no individual member of the Novo Board is deemed to hold any beneficial ownership or reportable pecuniary interest in the Novo Shares. Peter T. Bisgaard, a member of the board of directors of the Issuer, is employed as a Senior Partner of Novo Ventures (US) Inc., a company that provides consultancy services to Novo A/S. Mr. Bisgaard is not deemed a beneficial owner of, and does not have a reportable pecuniary interest in, the Novo Shares. Except as described in this Schedule 13D, neither the Foundation nor any person listed on Schedule I has the power to direct the vote as to, or the disposition of the Novo Shares.
(c) Except as set forth in Item 3 of this Schedule 13D, Novo A/S has not effected any transactions in the Issuers Common Stock within the past 60 days and neither the Foundation nor any person listed on Schedule I has effected any transactions in the Issuers Common Stock within the past 60 days.
(d) Novo A/S does not know of any other person having the right to receive or the power to direct the receipt of dividends from, or the proceeds from the sale of the Issuers Common Stock held in the name of the Novo A/S and reported herein.
(e) Not applicable.
Item 6. | Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer. |
Amended and Restated Investor Rights Agreement
The Issuer, Novo A/S and certain other holders of the Issuers securities are party to that certain Amended and Restated Investors Rights Agreement dated as of December 22, 2014 to become effective upon the closing of the IPO (the Investors Rights Agreement). The Investors Rights Agreement grants to Novo A/S and the other holders party thereto certain rights that include demand registration rights, piggyback registration rights and Form S-3 registration rights as more fully described in such agreement.
Lock-Up Agreement
In connection with the Issuers initial public offering, Novo A/S entered into a letter agreement (the Lock-Up Agreement) with the Issuer and the Underwriters, pursuant to which Novo A/S agreed that, during the Lock-Up Period as defined below and subject to certain limited exceptions specified in the Lock-Up Agreement, Novo A/S will not (1) offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, directly or indirectly, any shares of Common Stock beneficially owned or any securities convertible into or exercisable or exchangeable for Common Stock; (2) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of Common Stock; or (3) publicly disclose the intention to make any such offer, sale, pledge or disposition of shares of Common Stock. In addition, Novo A/S has agreed in the Lock-Up Agreement that, without the prior written consent of the Underwriters, it will not, during the Lock-Up Period, make any demand for or exercise any right with respect to, the registration of any shares of the Issuers capital stock. The Lock-Up Period is defined in the Lock-Up Agreement as the period ending 180 days after the date of the final prospectus used to sell Common Stock in the Issuers initial public offering. The Lock-Up Agreement automatically terminates and shall be of no further force or effect following the expiration of the Lock-Up Period.
The descriptions contained in this Statement on Schedule 13D of the Investors Rights Agreement and the Lock-Up Agreement are summaries only and are qualified in their entireties by the actual terms of each such agreement, which are incorporated herein by this reference. See Item 7 Material to be Filed as Exhibits.
Except for the Investors Rights Agreement and the Lock-Up Agreement, neither Novo A/S, the Foundation, nor any person named in Schedule I has entered into any contracts, arrangements, understandings or relationships with respect to securities of the Issuer.
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Item 7. | Material to be Filed as Exhibits. |
Exhibit A Amended and Restated Investor Rights Agreement, dated as of December 22, 2014 (incorporated by reference to Exhibit 4.8 of Form S-1 Registration Statement of the Issuer filed April 28, 2015 (File No. 333-20313)).
Exhibit B Form of Lock-Up Agreement.
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SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.
Dated: May 12, 2015 | Novo A/S
/s/ Bjarne Graven Larsen By: Bjarne Graven Larsen Its: Chief Financial Officer |
Signature Page to Schedule 13D
Schedule I
Information regarding each director and executive officer of both Novo A/S and the Novo Nordisk Foundation is set forth below.
Novo A/S | ||||||
Name, Title |
Address |
Principal Occupation |
Citizenship | |||
Sten Scheibye Chairman of the Board |
Rungsted Strandvej 197C 2960 Rungsted Kyst, Denmark |
Professional Board Director | Denmark | |||
Göran Ando Director |
Essex Woodlands Berkeley Square House Berkeley Square London, W1J 6BD United Kingdom |
Self-employed Professional Board Director |
Sweden | |||
Jeppe Christiansen Director |
Kollemose 37 2830 Virum Denmark |
Chief Executive Officer Fondsmaeglerselskabet Maj Invest A/S |
Denmark | |||
Steen Riisgaard Director |
Hestetangsvej 155 3520 Farum Denmark |
Professional Board Director | Denmark | |||
Per Wold-Olsen Director |
T7B22 Favray Court Tigne Point TP01 Malta |
Professional Board Director | Norway | |||
Eivind Drachmann Kolding Chief Executive Officer |
Skovvangen 18 2920 Charlottenlund Denmark |
Chief Executive Officer Novo A/S |
Denmark | |||
Bjarne Graven Larsen Chief Financial Officer |
Tuborg Havnevej 19 2900 Hellerup Denmark |
Chief Financial Officer Novo A/S |
Denmark | |||
Søren Carlsen Managing Partner Ventures, Seeds |
Grondalsvænge 3b 3460 Birkerød Denmark |
Managing Partner - Ventures, Seeds Novo A/S | Denmark | |||
Novo Nordisk Foundation | ||||||
Name, Title |
Address |
Principal Occupation |
Citizenship | |||
Sten Scheibye Chairman of the Board |
Rungsted Strandvej 197C 2960 Rungsted Kyst Denmark |
Professional Board Director | Denmark | |||
Bo Ahrén Professor |
Merkuriusgatan 11 S-224 57 Lund Sweden |
Professor of Medicine, Lund University Lund, Sweden |
Sweden | |||
Karsten Dybvad Chief Executive Officer |
Carl Baggers Alle 15 2920 Charlottenlund Denmark |
Director General and Chief Executive Officer DI (Confederation of Danish Industry) |
Denmark |
Novo Nordisk Foundation | ||||||
Name, Title |
Address |
Principal Occupation |
Citizenship | |||
Lars Fugger Director |
Staunton Road 72 OX3 7TP Great Britain |
Professor, John Radcliffe Hospital University of Oxford, Oxford, Great Britain |
Denmark | |||
Anne Marie Kverneland Director |
Nybrovej 216 2800 Kgs. Lyngby Denmark |
Laboratory Technician Novo Nordisk A/S |
Denmark | |||
Lars Bo Køppler Director |
Anemonevej 7 3550 Slangerup Denmark |
Technician Novozymes A/S |
Denmark | |||
Karen Lauberg Lauritsen Director |
Furesø Parkvej 53 2830 Virum Denmark |
IT Architecture Specialist Novo Nordisk A/S |
Denmark | |||
Marianne Philip Director |
Tranegårdsvej 5 2900 Hellerup Denmark |
Attorney | Denmark | |||
Steen Riisgaard Vice Chairman of the Board |
Hestetangsvej 155 3520 Farum Denmark |
Professional Board Director | Denmark | |||
Birgitte Nauntofte Chief Executive Officer |
Engbakkevej 24 2920 Charlottenlund Denmark |
Chief Executive Officer Novo Nordisk Foundation |
Denmark |
Exhibit B
Form of Lock-Up Agreement
[Date]
Leerink Partners LLC
as Representative of the several Underwriters
c/o Leerink Partners LLC
299 Park Avenue, 21st floor
New York, NY 10176
Re: | Proposed Public Offering by HTG Molecular Diagnostics, Inc. |
Ladies and Gentleman:
The undersigned, a stockholder, officer and/or director of HTG Molecular Diagnostics, Inc., a Delaware corporation (the Company), understands that Leerink Partners LLC (Leerink) proposes to enter into an Underwriting Agreement (the Underwriting Agreement) with the Company providing for the public offering (the Public Offering) of shares (the Securities) of the Companys common stock, par value $0.001 per share (the Common Stock). In recognition of the benefit that such an offering will confer upon the undersigned as a stockholder, an officer and/or a director of the Company, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the undersigned agrees with each underwriter to be named in the Underwriting Agreement (the Underwriters) that, during the period beginning on the date hereof and ending on the date that is 180 days from the date of the Underwriting Agreement (the Lock-Up Period), the undersigned will not, without the prior written consent of Leerink, directly or indirectly, (i) offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant for the sale of, or otherwise dispose of or transfer any shares of Common Stock or any securities convertible into or exchangeable or exercisable for Common Stock, whether now owned or hereafter acquired by the undersigned or with respect to which the undersigned has or hereafter acquires the power of disposition (collectively, the Lock-Up Securities), or exercise any right with respect to the registration of any of the Lock-Up Securities, or file or cause to be filed any registration statement in connection therewith, under the Securities Act of 1933, as amended (the Securities Act), or (ii) enter into any swap or any other agreement or any transaction that transfers, in whole or in part, directly or indirectly, the economic consequence of ownership of the Lock-Up Securities, whether any such swap or transaction is to be settled by delivery of Common Stock or other securities, in cash or otherwise. If the undersigned is an officer or director of the Company, the undersigned further agrees that the foregoing provisions shall be equally applicable to any issuer-directed Securities the undersigned may purchase in the Public Offering.
If the undersigned is an officer or director of the Company, (1) Leerink, on behalf of the Underwriters, agrees that, at least three business days before the effective date of any release or waiver of the foregoing restrictions in connection with a transfer of shares of the Common Stock, Leerink, on behalf of the Underwriters, will notify the Company of the impending release or waiver, and (2) the Company will agree in the Underwriting Agreement to announce the impending release or waiver by press release through a major news service at least two business days before the effective date of the release or waiver. Any release or waiver granted by Leerink on behalf of the Underwriters hereunder to any such officer or director shall only be effective two business days after the publication date of such press release. The provisions of this paragraph will not apply if (i) the release or waiver is effected solely to permit a transfer not for consideration and (ii) the transferee has agreed in writing to be bound by the same terms described in this letter to the extent and for the duration that such terms remain in effect at the time of the transfer.
In the event that any of the Companys securities are released from the lock-up restrictions set forth in a lock-up agreement for the Public Offering entered into with Leerink, on behalf of the Underwriters, Leerink shall immediately and fully release the same percentage of shares of the Companys securities held by the undersigned from any remaining lock-up restrictions concurrently therewith; provided, however, that (a) Leerink will not be obligated to release the undersigned from such lock-up (i) unless and until Leerink has first released more than three percent (3%) of the Companys total outstanding shares from such lock-up (calculated as of immediately following the closing of the Public Offering) except for releases in an underwritten public offering covered by the following subclause (ii), or (ii) if, with respect to any lock-up release effected in order to permit a person otherwise subject to lock-up restrictions set forth in a lock-up agreement for the Public Offering to participate in an underwritten public offering, the undersigned has been given the opportunity to participate in such underwritten public offering on a pro rata basis and the undersigned declined to so participate, and (b) in the event that any percentage of such shares released from the lock-up restrictions are subject to any restrictions, the same restrictions shall be applicable to the release of the same percentage of the Companys securities held by the undersigned. In the event that the undersigned is released from any of its obligations under this letter or, by virtue of this letter, becomes entitled to offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of, directly or indirectly, any shares of Common Stock (or any securities convertible into or exercisable or exchangeable for shares of Common Stock) prior to the date that is 180 days after the date of the Underwriting Agreement, Leerink shall use its commercially reasonable efforts to notify the undersigned within three (3) business days; provided that the failure to give such notice shall not give rise to any claim or liability against Leerink or the Underwriters.
Notwithstanding the foregoing, and subject to the conditions below, the undersigned may transfer the Lock-Up Securities without the prior written consent of Leerink, provided, in each case, that (1) Leerink receives a signed lock-up agreement for the balance of the Lock-Up Period from each donee, trustee, distributee, or transferee, as the case may be, (2) any such transfer shall not involve a disposition for value, (3) such transfers are not required to be reported with the Securities and Exchange Commission on Form 4 in accordance with Section 16 of the Securities Exchange Act of 1934, as amended (Exchange Act), and (4) the undersigned does not otherwise voluntarily effect any public filing or report regarding such transfers (other than a filing on a Form 5 made after the expiration of the Lock-Up Period or a filing on Form 13F or Schedule 13G required under the Exchange Act):
(i) | as a bona fide gift or gifts; |
(ii) | to any trust for the direct or indirect benefit of the undersigned or the immediate family of the undersigned (for purposes of this lock-up agreement, immediate family shall mean any relationship by blood, marriage or adoption, not more remote than first cousin); |
(iii) | as a distribution or other transfer by a partnership to its partners or former partners or by a limited liability company to its members or retired members or by a corporation to its stockholders or former stockholders or to any wholly-owned subsidiary of such corporation; |
(iv) | to the undersigneds affiliates or to any investment fund or other entity controlled or managed by the undersigned; |
(v) | pursuant to a qualified domestic relations order or in connection with a divorce settlement; |
(vi) | by will or intestate succession upon the death of the undersigned; or |
(vii) | to the Company in satisfaction of any tax withholding obligation |
Furthermore, no provision in this letter shall be deemed to restrict or prohibit (1) the transfer of the undersigneds Lock-Up Securities to the Company in connection with the termination of the undersigneds services to the Company, provided that no filing by any party under the Exchange Act or other public announcement shall be required or shall be made voluntarily in connection with such transfer (other than a filing on a Form 5 made after the expiration of the Lock-Up Period), (2) the exercise or exchange by the undersigned of any option or warrant to acquire any shares of Common Stock or options to purchase shares of Common Stock, in each case for cash, or on a cashless or net exercise basis, pursuant to any stock option, stock bonus or other stock plan or arrangement; provided, however, that the underlying shares of Common Stock shall continue to be subject to the restrictions on transfer set forth in this letter and that any filing under Section 16 of the Exchange Act made in connection with such exercise r exchange shall clearly indicate in the footnotes thereto that (a) the filing relates to the circumstances described in this clause (2), (b) no shares were sold by the reporting person and (c) any shares received upon exercise of such options or warrants are subject to a lock-up agreement with the Underwriters of the Public Offering, (3) the transfer of Lock-Up Securities pursuant to a bona fide third-party tender offer, merger, consolidation or other similar transaction made to all holders of the Companys securities involving a change of control of the Company; provided, however, that in the event that such tender offer, merger, consolidation or other such transaction is not completed, such securities held by the undersigned shall remain subject to the restrictions on transfer set forth in this letter, (4) the conversion of the outstanding preferred stock of the Company into shares of Common Stock, provided that any such shares received upon such conversion shall be subject to the restrictions on transfer set forth in this letter, or (5) the exercise of any right with respect to, or the taking of any other action in preparation for, a registration by the Company of shares of Common Stock or any securities convertible into or exercisable or exchangeable for Common Stock, provided that no transfer of the undersigneds Common Stock registered pursuant to the exercise of such rights under this item shall occur, and no registration statement shall be filed, during the Lock-Up Period.
Notwithstanding anything herein to the contrary, nothing herein shall prevent the undersigned from establishing a 10b5-1 trading plan that complies with Rule 10b5-1 under the Exchange Act (10b5-1 trading plan) or from amending an existing 10b5-1 trading plan so long as there are no sales of Lock-Up Securities under such plans during the Lock-Up Period; and provided that, the establishment of a 10b5-1 trading plan or the amendment of a 10b5-1 trading plan shall only be permitted if (i) the establishment or amendment of such plan is not required to be reported in any public report or filing with the Securities Exchange Commission, or otherwise and (ii) the undersigned does not otherwise voluntarily effect any public filing or report regarding the establishment or amendment of such plan.
Furthermore and notwithstanding anything herein to the contrary, during the Lock-Up Period, the undersigned may sell shares of Common Stock of the Company purchased by the undersigned in the Public Offering or acquired by the undersigned on the open market following the date of the Underwriting Agreement if and only if (i) such sales are not required during the Lock-Up Period to be reported in any press release or public report or filing with the Securities and Exchange Commission, or otherwise (other than a filing on Form 13F or Schedule 13G required under the Exchange Act) and (ii) the undersigned does not otherwise voluntarily effect any press release, public filing or report regarding such sales during the Lock-Up Period.
With respect to the Public Offering only, the undersigned hereby waives, on behalf of itself and all holders of registration rights pursuant to the Amended and Restated Investor Rights Agreement with the Company dated February 4, 2014 (as may be amended from time to time), any registration rights relating to registration under the Securities Act of any shares of capital stock of the Company owned either of record or beneficially by the undersigned, including any rights to receive notice of the Public Offering or the registration of the Common Stock to be sold in the Public Offering. The undersigned acknowledge and agrees that the Company shall be a third-party beneficiary of the waiver in this paragraph.
The undersigned also agrees and consents to the entry of stop transfer instructions with the Companys transfer agent and registrar against the transfer of the Lock-Up Securities except in compliance with the foregoing restrictions. This lock-up agreement shall automatically terminate, and the undersigned shall be released from the undersigneds obligations hereunder, upon the earliest to occur, if any, of (i) prior to the execution of the Underwriting Agreement, the Company advises Leerink in writing that it has determined not to proceed with the Public Offering, (ii) the Company files an application to withdraw the registration statement related to the Public Offering, (iii) the Underwriting Agreement is executed but is terminated prior to the closing of the Public Offering (other than the provisions thereof which survive termination), or (iv) March 31, 2015, in the event that the Underwriting Agreement has not been executed by such date.
The obligations set forth herein shall only become effective once all officers and directors of the Company, and all holders of five percent (5%) or more of the Companys outstanding capital stock (on an as converted Common Stock basis) enter into a similar agreement.
[signature page follows]
Very truly yours, | ||
Name of Security Holder (print exact name) | ||
By: |
| |
Signature | ||
If not signing in an individual capacity: | ||
Name of Authorized Signatory (Print) | ||
Title of Authorized Signatory (Print) | ||
(indicate capacity of person signing if signing as custodian, trustee, or on behalf of an entity) |