Five (5) Hercules Portfolio Companies Currently in IPO Registration
PALO ALTO, Calif.--(BUSINESS WIRE)--
Capital, Inc. (NYSE: HTGC) ("Hercules" or the "Company"), the
leading specialty finance company to innovative, venture growth, pre-IPO
and M&A stage companies backed by leading venture capital firms, is
pleased to announce the latest liquidity events and achievements for the
following portfolio companies:
IronPlanet, Inc., a leading online marketplace for used heavy
equipment and other durable assets, was acquired by Ritchie Bros.
Auctioneers Incorporated (NYSE & TSX: RBA), the world's largest
industrial auctioneer and a leading equipment distributor, for
approximately US $758.5 million. The transaction closed on May 31, 2017.
Hercules initially committed $37.5 million in venture debt financing to
IronPlanet in October 2014. The Company recognized a net realized gain
of $5.1 million from the transaction, generating a fully realized
internal rate of return ("IRR") of approximately 37.9% from its loan
repayments and equity/warrant gains.
Lithium Technologies, Inc., a market leader in cloud-based social
media engagement and online community solutions, announced that it had
entered into a definitive merger agreement to be acquired by Vista
Equity Partners, a leading private equity firm focused on investments in
software, data and technology-enabled businesses. Lithium's board of
directors unanimously approved the transaction on May 30, 2017. Terms of
the transaction were not disclosed. Hercules initially committed $25.0
million in venture debt financing to Lithium in November 2016.
SOASTA, Inc., a Software-as-a-Service ("SaaS") company that
provides cloud-based tools for testing the performance and functionality
of web and mobile applications, was acquired by Akamai Technologies,
Inc. (NASDAQ: AKAM), a leading content delivery services provider for
media and software delivery and cloud security solutions, in an all-cash
transaction. The acquisition closed on April 7, 2017. Hercules initially
committed $18.5 million in venture debt financing in August 2014. The
Company realized an IRR of approximately 9.9% from its loan repayments
and equity/warrant gains.
Merrimack Pharmaceuticals, Inc (NASDAQ: MACK) completed its asset
sale to Ipsen S.A. (Euronext: IPN; ADR:IPSEY), a global specialty-driven
pharmaceutical group committed to discovering new solutions for targeted
debilitating diseases on April 3, 2017. Merrimack used part of the
proceeds to extinguish the $175.0 million in outstanding Senior Secured
Notes due in 2022, which included Hercules' debt obligation. In
addition, Merrimack announced that its Board of Directors had authorized
and declared a special cash dividend of $140.0 million on the company's
common stock. This special dividend was paid from the proceeds of the
company's asset sale to Ipsen S.A. The special dividend was paid on May
26, 2017 to stockholders of record as of the close of business on May
Mast Therapeutics, Inc. announced the closing on April 27, 2017
of its previously announced merger with Savara Inc. (NASDAQ: SVRA), a
clinical-stage specialty pharmaceutical company focused on the
development and commercialization of novel therapies for the treatment
of serious or life-threatening rare respiratory diseases. As part of the
merger, the stockholders of Savara have become the majority owners of
Mast, and the operations of Mast and Savara have been combined. Hercules
initially committed $15.0 million in venture debt financing to Mast in
August 2015, and had an outstanding principal balance of $3.0 million
and held warrants for 2.3 million shares of common stock as of March 31,
2017. The post-merger company, named Savara Inc., is based in Austin, TX
and features three inhaled product candidates, each in advanced stages
of clinical development. The company will be led solely by Savara's
current management team.
JumpStart Games, Inc. entered into a definitive merger agreement
in June 2017 to be acquired by an undisclosed company, which if
completed could result in significant recovery of previously impaired
loan. Terms of the transaction are not being disclosed. However, M&A
negotiations are subject to many factors and hard to predict as to if or
when they will be completed, if at all. Hercules initially committed
$13.0 million in venture debt financing to JumpStart in March 2014.
Jaguar Animal Health, Inc. (NASDAQ: JAGX) entered a binding
merger agreement on May 26, 2017 with Napo Pharmaceuticals, a company
that focuses on the development and commercialization of proprietary
pharmaceuticals for the global marketplace in collaboration with local
partners. In addition, Jaguar Animal Health and Napo Pharmaceuticals
announced the filing of two Orphan Drug Designation Applications with
U.S. Food & Drug Administration (FDA) for Mytesi for serious unmet
The proposed merger of Jaguar and Napo remains subject to customary
closing conditions. Upon the consummation of the merger, Jaguar's name
will be changed to Jaguar Health, Inc., and Napo will operate as a
wholly-owned subsidiary of Jaguar, focused on human health. As
previously stated, Jaguar and Napo expect the merger to close by the end
of July 2017.
As of June 30, 2017, Hercules held warrant and equity positions in five
(5) portfolio companies that had filed Registration Statements in
contemplation of a potential IPO, including:
Five (5) companies filed confidentially under the JOBS Act
There can be no assurances that companies that have yet to complete
their IPOs will do so.
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 $6.7 billion to over
375 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 email@example.com,
or call 650.289.3060.
Hercules' common stock trades on the New York Stock Exchange under the
ticker symbol "HTGC."
In addition, Hercules has one outstanding bond issuance of 6.25%
Unsecured Notes due July 2024 (NYSE: HTGX).
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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170629005419/en/
Hercules Capital, Inc.
Michael Hara, 650-433-5578 HT-HN
Relations and Corporate Communications
Source: Hercules Capital, Inc.
News Provided by Acquire Media