UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
SCHEDULE 13D/A
Under the Securities Exchange Act of 1934
(Amendment No. 1)*
Progenity, Inc.
(Name of Issuer)
Common Stock, par value $0.001 per share
(Title of Class of Securities)
74319F107
(CUSIP Number)
Andrew C. Hyman, Esq.
Athyrium Capital Management, LP
505 Fifth Avenue, 18th Floor
New York, New York 10017
(212) 402-6925
(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)
December 7, 2020
(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 that is the subject of this Schedule 13D, and is filing this schedule because of §§ 240.13d-1(e), 240.13d-l(f) or 240.13d-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 § 240.13d-7 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 (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).
1 |
Name of reporting person
Athyrium Opportunities Fund (A) LP | |||||
2 | Check the appropriate box if a member of a group (a) ☐ (b) ☒
| |||||
3 | SEC use only
| |||||
4 | Source of funds
OO | |||||
5 | Check box if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e)
☐ | |||||
6 | Citizenship or place of organization
Delaware |
Number of shares beneficially owned by each reporting person with |
7 | Sole voting power
0 | ||||
8 | Shared voting power
4,211,977 | |||||
9 | Sole dispositive power
0 | |||||
10 | Shared dispositive power
4,211,977 |
11 |
Aggregate amount beneficially owned by each reporting person
4,211,977 | |||||
12 | Check box if the aggregate amount in Row (11) excludes certain shares
☐ | |||||
13 | Percent of class represented by amount in Row (11)
5.0% | |||||
14 | Type of reporting person
PN |
1 |
Name of reporting person
Athyrium Opportunities Fund (B) LP | |||||
2 | Check the appropriate box if a member of a group* (a) ☐ (b) ☒
| |||||
3 | SEC use only
| |||||
4 | Source of funds
OO | |||||
5 | Check box if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e)
☐ | |||||
6 | Citizenship or place of organization
Delaware |
Number of shares beneficially owned by each reporting person with |
7 | Sole voting power
0 | ||||
8 | Shared voting power
2,329,083 | |||||
9 | Sole dispositive power
0 | |||||
10 | Shared dispositive power
2,329,083 |
11 |
Aggregate amount beneficially owned by each reporting person
2,329,083 | |||||
12 | Check box if the aggregate amount in Row (11) excludes certain shares
☐ | |||||
13 | Percent of class represented by amount in Row (11)
2.8% | |||||
14 | Type of reporting person
PN |
1 |
Name of reporting person
Athyrium Opportunities III Co-Invest 1 LP | |||||
2 | Check the appropriate box if a member of a group* (a) ☐ (b) ☒
| |||||
3 | SEC use only
| |||||
4 | Source of funds
OO | |||||
5 | Check box if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e)
☐ | |||||
6 | Citizenship or place of organization
Delaware |
Number of shares beneficially owned by each reporting person with |
7 | Sole voting power
0 | ||||
8 | Shared voting power
26,399,650 | |||||
9 | Sole dispositive power
0 | |||||
10 | Shared dispositive power
26,399,650 |
11 |
Aggregate amount beneficially owned by each reporting person
26,399,650 | |||||
12 | Check box if the aggregate amount in Row (11) excludes certain shares
☐ | |||||
13 | Percent of class represented by amount in Row (11)
31.5% | |||||
14 | Type of reporting person
PN |
1 |
Name of reporting person
Athyrium Opportunities III Acquisition LP | |||||
2 | Check the appropriate box if a member of a group* (a) ☐ (b) ☒
| |||||
3 | SEC use only
| |||||
4 | Source of funds
OO | |||||
5 | Check box if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e)
☐ | |||||
6 | Citizenship or place of organization
Delaware |
Number of shares beneficially owned by each reporting person with |
7 | Sole voting power
0 | ||||
8 | Shared voting power
6,950,235 | |||||
9 | Sole dispositive power
0 | |||||
10 | Shared dispositive power
6,950,235 |
11 |
Aggregate amount beneficially owned by each reporting person
6,950,235 | |||||
12 | Check box if the aggregate amount in Row (11) excludes certain shares
☐ | |||||
13 | Percent of class represented by amount in Row (11)
8.3% | |||||
14 | Type of reporting person
PN |
1 |
Name of reporting person
Athyrium Opportunities III Acquisition 2 LP | |||||
2 | Check the appropriate box if a member of a group* (a) ☐ (b) ☒
| |||||
3 | SEC use only
| |||||
4 | Source of funds
OO | |||||
5 | Check box if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e)
☐ | |||||
6 | Citizenship or place of organization
Delaware |
Number of shares beneficially owned by each reporting person with |
7 | Sole voting power
0 | ||||
8 | Shared voting power
11,731,480 | |||||
9 | Sole dispositive power
0 | |||||
10 | Shared dispositive power
11,731,480 |
11 |
Aggregate amount beneficially owned by each reporting person
11,731,480 | |||||
12 | Check box if the aggregate amount in Row (11) excludes certain shares
☐ | |||||
13 | Percent of class represented by amount in Row (11)
14.0% | |||||
14 | Type of reporting person
PN |
1 |
Name of reporting person
Athyrium Opportunities 2020 LP | |||||
2 | Check the appropriate box if a member of a group* (a) ☐ (b) ☒
| |||||
3 | SEC use only
| |||||
4 | Source of funds
OO | |||||
5 | Check box if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e)
☐ | |||||
6 | Citizenship or place of organization
Delaware |
Number of shares beneficially owned by each reporting person with |
7 | Sole voting power
0 | ||||
8 | Shared voting power
4,583,333 | |||||
9 | Sole dispositive power
0 | |||||
10 | Shared dispositive power
4,583,333 |
11 |
Aggregate amount beneficially owned by each reporting person
4,583,333 | |||||
12 | Check box if the aggregate amount in Row (11) excludes certain shares
☐ | |||||
13 | Percent of class represented by amount in Row (11)
5.5% | |||||
14 | Type of reporting person
PN |
1 |
Name of reporting person
Athyrium Opportunities Associates LP | |||||
2 | Check the appropriate box if a member of a group (a) ☐ (b) ☒
| |||||
3 | SEC use only
| |||||
4 | Source of funds
OO | |||||
5 | Check box if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e)
☐ | |||||
6 | Citizenship or place of organization
Delaware |
Number of shares beneficially owned by each reporting person with |
7 | Sole voting power
0 | ||||
8 | Shared voting power
6,541,060 | |||||
9 | Sole dispositive power
0 | |||||
10 | Shared dispositive power
6,541,060 |
11 |
Aggregate amount beneficially owned by each reporting person
6,541,060 | |||||
12 | Check box if the aggregate amount in Row (11) excludes certain shares
☐ | |||||
13 | Percent of class represented by amount in Row (11)
7.8% | |||||
14 | Type of reporting person
PN |
1 |
Name of reporting person
Athyrium Opportunities Associates GP LLC | |||||
2 | Check the appropriate box if a member of a group (a) ☐ (b) ☒
| |||||
3 | SEC use only
| |||||
4 | Source of funds
OO | |||||
5 | Check box if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e)
☐ | |||||
6 | Citizenship or place of organization
Delaware |
Number of shares beneficially owned by each reporting person with |
7 | Sole voting power
0 | ||||
8 | Shared voting power
6,541,060 | |||||
9 | Sole dispositive power
0 | |||||
10 | Shared dispositive power
6,541,060 |
11 |
Aggregate amount beneficially owned by each reporting person
6,541,060 | |||||
12 | Check box if the aggregate amount in Row (11) excludes certain shares
☐ | |||||
13 | Percent of class represented by amount in Row (11)
7.8% | |||||
14 | Type of reporting person
OO |
1 |
Name of reporting person
Athyrium Capital Management, LP | |||||
2 | Check the appropriate box if a member of a group (a) ☐ (b) ☒
| |||||
3 | SEC use only
| |||||
4 | Source of funds
OO | |||||
5 | Check box if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e)
☐ | |||||
6 | Citizenship or place of organization
Delaware |
Number of shares beneficially owned by each reporting person with |
7 | Sole voting power
0 | ||||
8 | Shared voting power
6,541,060 | |||||
9 | Sole dispositive power
0 | |||||
10 | Shared dispositive power
6,541,060 |
11 |
Aggregate amount beneficially owned by each reporting person
6,541,060 | |||||
12 | Check box if the aggregate amount in Row (11) excludes certain shares
☐ | |||||
13 | Percent of class represented by amount in Row (11)
7.8% | |||||
14 | Type of reporting person
PN / IA |
1 |
Name of reporting person
Athyrium Capital Holdings, LLC | |||||
2 | Check the appropriate box if a member of a group (a) ☐ (b) ☒
| |||||
3 | SEC use only
| |||||
4 | Source of funds
OO | |||||
5 | Check box if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e)
☐ | |||||
6 | Citizenship or place of organization
Delaware |
Number of shares beneficially owned by each reporting person with |
7 | Sole voting power
0 | ||||
8 | Shared voting power
6,541,060 | |||||
9 | Sole dispositive power
0 | |||||
10 | Shared dispositive power
6,541,060 |
11 |
Aggregate amount beneficially owned by each reporting person
6,541,060 | |||||
12 | Check box if the aggregate amount in Row (11) excludes certain shares
☐ | |||||
13 | Percent of class represented by amount in Row (11)
7.8% | |||||
14 | Type of reporting person
OO |
1 |
Name of reporting person
Jeffrey A. Ferrell | |||||
2 | Check the appropriate box if a member of a group (a) ☐ (b) ☒
| |||||
3 | SEC use only
| |||||
4 | Source of funds
OO | |||||
5 | Check box if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e)
☐ | |||||
6 | Citizenship or place of organization
United States |
Number of shares beneficially owned by each reporting person with |
7 | Sole voting power
0 | ||||
8 | Shared voting power
56,205,758 | |||||
9 | Sole dispositive power
0 | |||||
10 | Shared dispositive power
56,205,758 |
11 |
Aggregate amount beneficially owned by each reporting person
56,205,758 | |||||
12 | Check box if the aggregate amount in Row (11) excludes certain shares
☐ | |||||
13 | Percent of class represented by amount in Row (11)
67.1% | |||||
14 | Type of reporting person
IN |
1 |
Name of reporting person
Athyrium Opportunities Advisers LLC | |||||
2 | Check the appropriate box if a member of a group (a) ☐ (b) ☒
| |||||
3 | SEC use only
| |||||
4 | Source of funds
OO | |||||
5 | Check box if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e)
☐ | |||||
6 | Citizenship or place of organization
Delaware |
Number of shares beneficially owned by each reporting person with |
7 | Sole voting power
0 | ||||
8 | Shared voting power
6,541,060 | |||||
9 | Sole dispositive power
0 | |||||
10 | Shared dispositive power
6,541,060 |
11 |
Aggregate amount beneficially owned by each reporting person
6,541,060 | |||||
12 | Check box if the aggregate amount in Row (11) excludes certain shares
☐ | |||||
13 | Percent of class represented by amount in Row (11)
7.8% | |||||
14 | Type of reporting person
OO / IA |
1 |
Name of reporting person
NB Alternatives Advisers LLC | |||||
2 | Check the appropriate box if a member of a group (a) ☐ (b) ☒
| |||||
3 | SEC use only
| |||||
4 | Source of funds
OO | |||||
5 | Check box if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e)
☒ | |||||
6 | Citizenship or place of organization
Delaware |
Number of shares beneficially owned by each reporting person with |
7 | Sole voting power
0 | ||||
8 | Shared voting power
6,541,060 | |||||
9 | Sole dispositive power
0 | |||||
10 | Shared dispositive power
6,541,060 |
11 |
Aggregate amount beneficially owned by each reporting person
6,541,060 | |||||
12 | Check box if the aggregate amount in Row (11) excludes certain shares
☐ | |||||
13 | Percent of class represented by amount in Row (11)
7.8% | |||||
14 | Type of reporting person
OO / IA |
1 |
Name of reporting person
NB Alternatives GP Holdings LLC | |||||
2 | Check the appropriate box if a member of a group (a) ☐ (b) ☒
| |||||
3 | SEC use only
| |||||
4 | Source of funds
OO | |||||
5 | Check box if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e)
☐ | |||||
6 | Citizenship or place of organization
Delaware |
Number of shares beneficially owned by each reporting person with |
7 | Sole voting power
0 | ||||
8 | Shared voting power
6,541,060 | |||||
9 | Sole dispositive power
0 | |||||
10 | Shared dispositive power
6,541,060 |
11 |
Aggregate amount beneficially owned by each reporting person
6,541,060 | |||||
12 | Check box if the aggregate amount in Row (11) excludes certain shares
☐ | |||||
13 | Percent of class represented by amount in Row (11)
7.8% | |||||
14 | Type of reporting person
OO |
1 |
Name of reporting person
NB Alternatives Holdings LLC | |||||
2 | Check the appropriate box if a member of a group (a) ☐ (b) ☒
| |||||
3 | SEC use only
| |||||
4 | Source of funds
OO | |||||
5 | Check box if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e)
☐ | |||||
6 | Citizenship or place of organization
Delaware |
Number of shares beneficially owned by each reporting person with |
7 | Sole voting power
0 | ||||
8 | Shared voting power
6,541,060 | |||||
9 | Sole dispositive power
0 | |||||
10 | Shared dispositive power
6,541,060 |
11 |
Aggregate amount beneficially owned by each reporting person
6,541,060 | |||||
12 | Check box if the aggregate amount in Row (11) excludes certain shares
☐ | |||||
13 | Percent of class represented by amount in Row (11)
7.8% | |||||
14 | Type of reporting person
OO |
1 |
Name of reporting person
Athyrium Opportunities Associates Co-Invest LLC | |||||
2 | Check the appropriate box if a member of a group (a) ☐ (b) ☒
| |||||
3 | SEC use only
| |||||
4 | Source of funds
OO | |||||
5 | Check box if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e)
☐ | |||||
6 | Citizenship or place of organization
Delaware |
Number of shares beneficially owned by each reporting person with |
7 | Sole voting power
0 | ||||
8 | Shared voting power
26,399,650 | |||||
9 | Sole dispositive power
0 | |||||
10 | Shared dispositive power
26,399,650 |
11 |
Aggregate amount beneficially owned by each reporting person
26,399,650 | |||||
12 | Check box if the aggregate amount in Row (11) excludes certain shares
☐ | |||||
13 | Percent of class represented by amount in Row (11)
31.5% | |||||
14 | Type of reporting person
OO |
1 |
Name of reporting person
Athyrium Funds GP Holdings LLC | |||||
2 | Check the appropriate box if a member of a group (a) ☐ (b) ☒
| |||||
3 | SEC use only
| |||||
4 | Source of funds
OO | |||||
5 | Check box if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e)
☐ | |||||
6 | Citizenship or place of organization
Delaware |
Number of shares beneficially owned by each reporting person with |
7 | Sole voting power
0 | ||||
8 | Shared voting power
49,664,698 | |||||
9 | Sole dispositive power
0 | |||||
10 | Shared dispositive power
49,664,698 |
11 |
Aggregate amount beneficially owned by each reporting person
49,664,698 | |||||
12 | Check box if the aggregate amount in Row (11) excludes certain shares
☐ | |||||
13 | Percent of class represented by amount in Row (11)
59.3% | |||||
14 | Type of reporting person
OO |
1 |
Name of reporting person
Athyrium Opportunities Associates III LP | |||||
2 | Check the appropriate box if a member of a group (a) ☐ (b) ☒
| |||||
3 | SEC use only
| |||||
4 | Source of funds
OO | |||||
5 | Check box if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e)
☐ | |||||
6 | Citizenship or place of organization
Delaware |
Number of shares beneficially owned by each reporting person with |
7 | Sole voting power
0 | ||||
8 | Shared voting power
23,265,048 | |||||
9 | Sole dispositive power
0 | |||||
10 | Shared dispositive power
23,265,048 |
11 |
Aggregate amount beneficially owned by each reporting person
23,265,048 | |||||
12 | Check box if the aggregate amount in Row (11) excludes certain shares
☐ | |||||
13 | Percent of class represented by amount in Row (11)
27.8% | |||||
14 | Type of reporting person
PN |
1 |
Name of reporting person
Athyrium Opportunities Associates III GP LLC | |||||
2 | Check the appropriate box if a member of a group (a) ☐ (b) ☒
| |||||
3 | SEC use only
| |||||
4 | Source of funds
OO | |||||
5 | Check box if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e)
☐ | |||||
6 | Citizenship or place of organization
Delaware |
Number of shares beneficially owned by each reporting person with |
7 | Sole voting power
0 | ||||
8 | Shared voting power
23,265,048 | |||||
9 | Sole dispositive power
0 | |||||
10 | Shared dispositive power
23,265,048 |
11 |
Aggregate amount beneficially owned by each reporting person
23,265,048 | |||||
12 | Check box if the aggregate amount in Row (11) excludes certain shares
☐ | |||||
13 | Percent of class represented by amount in Row (11)
27.8% | |||||
14 | Type of reporting person
OO |
Explanatory Note
This Amendment No. 1 (this Amendment No. 1) amends and supplements the Schedule 13D originally filed by the Reporting Persons (as defined below) with the Securities and Exchange Commission (the SEC) on July 6, 2020 (the Original Schedule 13D and, as amended by this Amendment No. 1, this Schedule 13D).
Item 1. Security and Issuer.
This Schedule 13D relates to the common stock, par value $0.001 per share (Common Stock), of Progenity, Inc., a Delaware corporation (the Company). The address of the principal executive offices of the Company is 4330 La Jolla Village Drive, Suite 200, San Diego, California 92122.
Item 2. Identity and Background.
(a)-(c) & (f) This Schedule 13D is filed jointly by the following persons pursuant to Rule 13d-1(k) promulgated under the Securities Exchange Act of 1934:
(1) Athyrium Opportunities Fund (A) LP, a Delaware limited partnership (Fund A), is an investment partnership engaged in the business of making equity and debt investments;
(2) Athyrium Opportunities Fund (B) LP, a Delaware limited partnership (Fund B and, together with Fund A, the Joint Funds), is an investment partnership engaged in the business of making equity and debt investments;
(3) Athyrium Opportunities III Co-Invest 1 LP, a Delaware limited partnership (Co-Invest LP), is an investment partnership engaged in the business of making equity and debt investments;
(4) Athyrium Opportunities III Acquisition LP, a Delaware limited partnership (Acquisition LP), is an investment partnership engaged in the business of making equity and debt investments;
(5) Athyrium Opportunities III Acquisition 2 LP, a Delaware limited partnership (Acquisition 2 LP and, together with Acquisition LP, the AOIII Acquisition Funds), is an investment partnership engaged in the business of making equity and debt investments;
(6) Athyrium Opportunities 2020 LP, a Delaware limited partnership (2020 LP and, together with the Joint Funds, Co-Invest LP and the AOIII Acquisition Funds, the Funds), is an investment partnership engaged in the business of making equity and debt investments;
(7) Athyrium Opportunities Associates LP, a Delaware limited partnership (Associates LP), is engaged in the business of being the general partner of the Joint Funds;
(8) Athyrium Opportunities Associates GP LLC, a Delaware limited liability company (Associates GP), is engaged in the business of being the general partner of Associates LP;
(9) Athyrium Capital Management, LP, a Delaware limited partnership (ACM), is engaged in the business of being a member of Associates GP and an investment sub-adviser to Opportunities Advisers (as defined below);
(10) Athyrium Capital Holdings, LLC, a Delaware limited liability company (ACH), is engaged in the business of being the general partner of ACM;
(11) Jeffrey A. Ferrell is an individual citizen of the United States whose principal occupation is to serve as the Managing Member of ACH and GP Holdings (as defined below) and the President of ACM, Associates GP, Associates III GP (as defined below) and Associates Co-Invest (as defined below);
(12) Athyrium Opportunities Advisers LLC, a Delaware limited liability company (Opportunities Advisers), is engaged in the business of being an investment adviser to the Joint Funds;
(13) NB Alternatives Advisers LLC, a Delaware limited liability company (Alternatives Advisers), is engaged in the business of being the sole member of Opportunities Advisers;
(14) NB Alternatives GP Holdings LLC, a Delaware limited liability company (Alternatives GP), is engaged in the business of being a member of Associates GP;
(15) NB Alternatives Holdings LLC, a Delaware limited liability company (Alternatives Holdings), is engaged in the business of being the sole member of Alternatives GP and a member of Alternatives Advisers;
(16) Athyrium Opportunities Associates Co-Invest LLC, a Delaware limited liability company (Associates Co-Invest), is engaged in the business of being the general partner of Co-Invest LP;
(17) Athyrium Funds GP Holdings LLC, a Delaware limited liability company (GP Holdings), is engaged in the business of being the managing member of Associates Co-Invest and Associates III GP (as defined below);
(18) Athyrium Opportunities Associates III LP, a Delaware limited partnership (Associates III LP), is engaged in the business of being the general partner of the AOIII Acquisition Funds and 2020 LP; and
(19) Athyrium Opportunities Associates III GP LLC, a Delaware limited liability company (Associates III GP), is engaged in the business of being the general partner of Associates III LP.
The persons described in (1) through (19) above are referred to herein as the Reporting Persons. A list of the directors, executive officers, managers, members and partners, as applicable, of each Reporting Person (collectively, the Covered Persons) is attached hereto as Annex A and is incorporated by reference herein. To the knowledge of the Reporting Persons, each of the Covered Persons that is a natural person is a United States citizen, except for Elin Strong, who is a citizen of Norway.
The principal business address of each of the Reporting Persons listed as (1)-(2), (7)-(8), (12) and (15), and each Covered Person associated with the foregoing Reporting Persons, is c/o NB Alternatives Advisers LLC, 1290 Avenue of the Americas, New York, New York 10104.
The principal business address of each of the Reporting Persons listed as (3)-(6), (9)-(11) and (16)-(19) and each associated Covered Person is c/o Athyrium Capital Management, LP, 505 Fifth Avenue, Floor 18, New York, New York 10017.
The principal business address of each of the Reporting Persons listed as (13)-(14), and each Covered Person associated with the foregoing Reporting Persons, is c/o NB Alternatives Advisers LLC, 325 N. Saint Paul Street, Suite 4900, Dallas, TX 75201.
(d) During the last five years, none of the Reporting Persons or, to their knowledge, none of the Covered Persons, has been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors).
(e) On December 17, 2018, the Securities and Exchange Commission (the SEC) announced that Alternatives Advisers, without admitting or denying any wrongdoing, consented to the entry of an order (the Order) by the SEC focused solely on certain expense allocations relating to Dyal Capital Partners (Dyal) Business Services Platform (the BSP), a team within Dyal focused on providing client development, talent management, operational advisory and other services to the partner managers in which certain Dyal funds invest. No other businesses of Alternatives Advisers utilize the BSP (or a similar model) nor allocate the expense associated with the BSP to Alternatives Advisers-advised funds. The Order had no finding of intentional wrongdoing or fraud, and found that the issues relating to the BSP expenses ceased in 2017. Alternatives Advisers agreed as part of the settlement to pay a disgorgement amount to certain Dyal funds covering 20122016, and to pay a civil monetary penalty to the SEC.
Other than as disclosed in the foregoing paragraph, during the last five years, none of the Reporting Persons or, to their knowledge, none of the Covered Persons, has been 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.
On October 27, 2017, the Company and Co-Invest LP entered into a Series B Preferred Stock Purchase Agreement (the 2017 Series B Stock Purchase Agreement), which provided for the sale of shares of Series B Preferred Stock at a purchase price of $3.53 per share for an aggregate purchase price of $50.0 million. Also on October 27, 2017, the Company issued the Warrant to Co-Invest LP providing the right to purchase additional shares of Series B Preferred Stock.
On August 27, 2019, the Company and Acquisition LP entered into a Series B Preferred Stock Purchase Agreement pursuant to which Acquisition LP purchased shares of Series B Preferred Stock at $2.75 per share for an aggregate purchase price of $25.0 million. Also on August 27, 2019, the Company exchanged shares of its Series B Preferred Stock for the shares of its Series A-1 Preferred Stock held by the Joint Funds, which were acquired on June 12, 2013 for an aggregate purchase price of $11.2 million.
On November 12, 2019, the Company and Acquisition LP entered into a Series B Stock Preferred Stock Purchase Agreement (the 2019 Series B Stock Purchase Agreement) pursuant to which Acquisition LP purchased additional shares of Series B Preferred Stock at $2.25 per share for an aggregate purchase price of $25.0 million. The conversion price of the Series B Preferred Stock and exercise price of the Warrant were lowered from $2.75 to $2.25 per share (or $13.90 per share as a result of the reverse stock split effected on June 10, 2020). Also on November 12, 2019, Acquisition 2 LP acquired all of the securities of the Company held by Acquisition LP.
On December 19, 2019 and February 28, 2020, Acquisition 2 LP purchased additional shares of Series B Preferred Stock pursuant to the 2019 Series B Stock Purchase Agreement for an aggregate purchase price of $25.0 million and $10.0 million, respectively, at a purchase price of $2.25 per share.
On March 31, 2020, Co-Invest LP and the Company entered into the First Amendment to the Credit Agreement (the Credit Agreement Amendment) providing for the payment in shares of the Companys Series B Preferred Stock of the interest on the amount outstanding under the applicable credit agreement.
On April 3, 2020, the Company and Acquisition 2 LP entered into a Series B Preferred Stock Purchase Agreement pursuant to which Acquisition 2 LP purchased additional shares of Series B Preferred Stock at $2.25 per share for an aggregate purchase price of $10.0 million.
On May 8, 2020, the Company and 2020 LP entered into a Note Purchase Agreement pursuant to which 2020 LP purchased an unsecured convertible promissory note (the Convertible Promissory Note) with an annual interest rate of 8.0% and in an aggregate principal amount of $15.0 million.
In connection with the consummation of the Companys initial public offering of its Common Stock, the Series B Preferred Stock and the Convertible Promissory Note converted, automatically and without any additional consideration, into 18,319,853 and 1,250,000 shares, respectively, of Common Stock. Further, on June 23, 2020, in connection with the initial public offering of the Companys Common Stock, 2020 LP purchased 3,333,333 shares of Common Stock at a price of $15.00 per share. The funds used to purchase such shares were composed of the investment capital of 2020 LP.
On December 7, 2020, the Company consummated a follow-on public offering of its Common Stock and a concurrent private placement of its 7.25% convertible senior notes due 2025 (the 7.25% Convertible Notes). Acquisition 2 purchased 4,128,440 shares of Common Stock, and Acquisition LP purchased an aggregate principal amount of $25,000,000 of the 7.25% Convertible Notes in connection with the offerings. Such shares of Common Stock were purchased for $3.27 per share of Common Stock for an aggregate purchase price of $13.5 million, and such 7.25% Convertible Notes were purchased for $25.0 million in cash, in each case at the same price offered to the public. The funds used to purchase such shares and 7.25% Convertible Notes, as applicable, were composed of the investment capital of the applicable Fund. At the same time, Co-Invest LP consummated an agreement to receive an aggregate principal amount of $78,500,000 of the 7.25% Convertible Notes and $95,833.33 in cash in exchange for the cancellation of the $78.6 million in principal and accrued and unpaid interest outstanding, as well as a prepayment penalty, under the Companys credit agreement for which Co-Invest LP acted as the lender and collateral agent.
Item 4. Purpose of Transaction.
The Reporting Persons acquired the securities reported herein for investment purposes and intend to review their investments in the Company on a continuing basis. Depending on various factors, including but not limited to the Companys financial position and strategic direction, price levels of the Common Stock, conditions in the securities markets, various laws and regulations applicable to the Company and companies in its industry and the Reporting Persons ownership in the Company, and general economic and industry conditions, the Reporting Persons may in the future take actions with respect to their investment in the Company as they deem appropriate, including changing their current intentions, with respect to any or all matters required to be disclosed herein. Without limiting the foregoing, and subject to any applicable limitations described in Item 6 below under the caption Lock-Up Agreement, the Reporting Persons may, from time to time, acquire or cause affiliates to acquire additional shares of Common Stock or other securities of the Company (including any combination or derivative thereof), dispose, or cause affiliates to dispose, of some or all of their Common Stock or other securities of the Company or continue to hold, or cause affiliates to hold, Common Stock or other securities of the Company.
Except as set forth herein, or as would occur upon completion of any of the matters discussed herein, the Reporting Persons have no present plans, proposals or intentions which would result in or relate to any of the transactions described in subparagraphs (a) through (j) of Item 4 of Schedule 13D. Although the foregoing reflects activities presently contemplated by the Reporting Persons and each other individuals named in Item 2 with respect to the Company, the foregoing is subject to change at any time.
The information set forth under Items 3 and 6 is incorporated by reference herein.
Item 5. Interest in Securities of the Issuer.
(a)-(b) The information contained on the cover pages of this Schedule 13D is incorporated herein by reference.
The Reporting Persons beneficially own in the aggregate 56,205,758 shares of Common Stock, which represents approximately 67.1% of the outstanding shares of Common Stock. All calculations of percentage ownership in this Schedule 13D are based on (i) 46,976,277 shares of Common Stock outstanding as reported in the Companys Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2020, (ii) plus the shares issued in the Companys follow-on offering of Common Stock, and (iii) plus the shares issuable upon conversion of the 7.25% Convertible Notes held by the Reporting Persons and the Warrant (as defined below).
To the knowledge of the Reporting Persons, none of the Covered Persons directly owns any shares of Common Stock; provided, however, that because of each Covered Persons status as a director, executive officer, manager, member or partner of a Reporting Person, a Covered Person may be deemed to be the beneficial owner of the shares of Common Stock beneficially owned by such Reporting Person. Except to the extent of their pecuniary interest, each of the Covered Persons disclaims beneficial ownership of the shares of the Common Stock reported herein and the filing of this Schedule 13D shall not be construed as an admission that any such Covered Person is the beneficial owner of any securities covered by this statement.
In accordance with the SEC Release No. 34-39538 (January 12, 1998) (the Release), this Schedule 13D reflects the securities beneficially owned by certain operating units (collectively, the NB Alts Reporting Units) of Neuberger Berman Group LLC and its subsidiaries and affiliates (collectively, NBG). This Schedule 13D does not reflect securities, if any, beneficially owned by any operating units of NBG whose ownership of securities is disaggregated from that of the NB Alts Reporting Units in accordance with the Release.
(c) Except as described in Item 3 of this Schedule 13D, none of the Reporting Persons or, to their knowledge, none of the Covered Persons, has had any transactions in the Common Stock during the past 60 days.
(d) Except as set forth herein, to the knowledge of the Reporting Persons, no other person has the right to receive or the power to direct the receipt of dividends from, or the proceeds from the sale of, any shares of Common Stock.
(e) Not applicable.
Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer.
Fourth Amended and Restated Investors Rights Agreement
On August 27, 2019, the Joint Funds, Co-Invest LP and Acquisition LP (the Athyrium Parties) entered into a fourth amended and restated investors rights agreement (the Investors Rights Agreement) with the Company and the other stockholders of the Company. The Investors Rights Agreement provides that the stockholders of the Company have certain registration rights described below. On November 12, 2019, in connection with its acquisition of the securities of the Company previously held by Acquisition LP, Acquisition 2 LP signed a joinder agreement to the Investors Rights Agreement and became one of the Athyrium Parties discussed below.
The registration rights described below will expire (i) five years after the completion of the Companys initial public offering, (ii) with respect to any Athyrium Party, at the time such Athyrium Party can sell all of its registrable securities under Rule 144 or another similar exemption under the Securities Act without limitation during a three-month period without registration or (iii) upon termination of the Investors Rights Agreement.
The key registration rights under the Investors Rights Agreement are as follows:
| Demand Registration Rights. At any time beginning 210 days after the effective date of the registration statement for the Companys initial public offering, the holders of 50% or more of the registrable securities then outstanding may make a written request that the Company register all or a portion of their shares, subject to certain specified exceptions and conditions. The Company will then prepare and file a registration statement as requested, unless, in the good faith judgment of the Companys board of directors, such registration would be seriously detrimental to the Company and its stockholders and filing should be deferred. |
| Piggyback Registration Rights. Subject to certain specified exceptions, if the Company proposes to register any of its securities under the Securities Act either for its own account or for the account of other stockholders, the holders of shares having registration rights are entitled to written notice and certain piggyback registration rights allowing them to include their shares in the Companys registration statement. These registration rights are subject to specified conditions and limitations, including the right of the underwriters, in their sole discretion, to limit the number of shares included in any such offering under certain circumstances, but not below 15% of the total amount of securities included in such offering, unless all securities, other than the Companys securities, are entirely excluded from the offering. |
| Form S-3 Registration Rights. At any time after the Company is qualified to file a registration statement on Form S-3, and subject to limitations and conditions, the holders of 50% or more of the registrable securities then outstanding are entitled to written notice of such registration and may make a written request that the Company prepare and file a registration statement on Form S-3 under the Securities Act covering their shares. The Company will then prepare and file the Form S-3 registration statement as requested, unless, in the good faith judgment of the Companys board of directors, such registration would be seriously detrimental to the Company and its stockholders and filing should be deferred. |
On November 10, 2020, the Company and the other stockholders party thereto entered into Amendment No. 1 to the Investors Rights Agreement in order to provide for the registration of the shares of Common Stock issued or issuable upon conversion of the Convertible Promissory Note.
On December 7, 2020, the Company and the other stockholders party thereto entered into Amendment No. 2 to the Investors Rights Agreement in order to provide for the registration of the shares of Common Stock issued or issuable upon conversion of the 7.25% Convertible Notes.
Lock-Up Agreement
On June 19, 2020, Jeffrey A. Ferrell and each of the Funds entered into a lock-up agreement (Lock-Up Agreement) with Piper Sandler & Co. and Wells Fargo Securities, LLC, as representatives of the underwriters of the Companys initial public offering, whereby Mr. Ferrell and each of the Funds agreed with the underwriters that, for a period of 180 days following the date of the final prospectus used for the Companys initial public offering, subject to certain exceptions, each of them will not, directly or indirectly, offer, pledge, announce the intention to sell, contract to sell, sell any option or contract to purchase, grant any option, right or warrant to purchase, make any short sale or otherwise transfer or dispose of any of shares of Common Stock, or any options or warrants to purchase any shares of Common Stock, or any securities convertible into, or exchangeable for or that represent the right to receive shares of Common Stock (collectively, the Lock-Up Restrictions). Piper Sandler & Co. (Piper Sandler) and Wells Fargo Securities, LLC (Wells Fargo) may, in their sole discretion, release all or any portion of the shares from the Lock-Up Restrictions.
On November 25, 2020, Jeffrey A. Ferrell and each of the Funds entered into one or more Lock-Up Agreements whereby Mr. Ferrell and each of the funds agreed with the underwriters of the Companys follow-on offering of Common Stock and the initial purchaser of the concurrent private placement of 7.25% Convertible Notes, that for a period of 90 days following the date of the final prospectus or offering memorandum, respectively, with respect to such offering, Mr. Ferrell and the Funds will abide by the Lock-Up Restrictions. Piper Sandler and Wells Fargo, in the case of the Lock-Up Agreements with respect to the Common Stock, and Piper Sandler, in the case of the Lock-Up Agreements with respect to the 7.25% Convertible Notes, may, in their sole discretion, release all or any portion of the securities covered by the applicable Lock-Up Agreements from the Lock-Up Restrictions.
Series B Preferred Stock Purchase Warrant
On October 27, 2017, the Company issued a Series B Preferred Stock Purchase Warrant (as amended, modified, restated, refinanced, replaced or supplemented from time to time, the Warrant) to Co-Invest LP as registered holder. Following the initial public offering of the Company, the Warrant is exercisable into 400,160 shares of Common Stock at an exercise price of $13.90 per share, at any time on or prior to its expiration on October 27, 2022.
7.25% Convertible Notes
On December 7, 2020, the Company issued a new series of 7.25% Convertible Notes. The 7.25% Convertible Notes were issued pursuant to, and are governed by, an indenture (the Indenture), dated as of December 7, 2020, by and between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee. The initial conversion rate is 278.0094 shares of common stock per $1,000 principal amount of 7.25% Convertible Notes, which represents an initial conversion price of approximately $3.60 per share of common stock. The conversion rate and conversion price will be subject to customary adjustments upon the occurrence of certain events. In addition, if certain corporate events that constitute a Make-Whole Fundamental Change (as defined in the Indenture) occur, then the conversion rate will, in certain circumstances, be increased for a specified period of time.
The foregoing summary of the Investors Rights Agreement, Lock-Up Agreement¸ Warrant and 7.25% Convertible Notes is qualified in its entirety by reference to the complete text of such agreements, copies of which are filed as exhibits hereto and are incorporated herein by reference.
Pursuant to Rule 13d-1(k) promulgated under the Securities Exchange Act of 1934, as amended, the Reporting Persons have entered into an agreement with respect to the joint filing of this Schedule 13D, which agreement is set forth on the signature page to this Schedule 13D.
Except as described above and herein in this Schedule 13D, there are no other contracts, understandings or relationships (legal or otherwise) among the parties named in Item 2 hereto and between such persons and any person with respect to any of the common stock of the Company owned by the Funds.
Item 7. Material to be Filed as Exhibits.
Exhibit 99.1 | Fourth Amended and Restated Investors Rights Agreement, dated August 27, 2019, by and among the Company and certain of its stockholders (Incorporated by reference to Exhibit 4.5 of the Companys Registration Statement on Form S-1 filed on May 27, 2020). |
Exhibit 99.2 | Amendment No. 1 to Fourth Amended and Restated Investors Rights Agreement, dated as of November 10, 2020, by and among the Company and certain of its stockholders (Incorporated by reference to Exhibit 4.6 of the Companys Registration Statement on Form S-1 filed on December 1, 2020). | |
Exhibit 99.3 | Amendment No. 2 to Fourth Amended and Restated Investors Rights Agreement, dated as of December 7, 2020, by and among the Company and certain of its stockholders. | |
Exhibit 99.4 | Form of Lock-Up Agreement, dated as of June 19, 2020, between the Company and the holder thereto (Incorporated by reference to Exhibit A to the form of Underwriting Agreement filed as Exhibit 1.1 of Amendment No. 2 to the Companys Registration Statement on Form S-1 filed on June 18, 2020). | |
Exhibit 99.5 | Form of Lock-Up Agreement, dated as of November 25, 2020, between the Company and the holder thereto (Incorporated by reference to Exhibit A to the form of Underwriting Agreement filed as Exhibit 1.1 of Amendment No. 1 to the Companys Registration Statement on Form S-1 filed on December 2, 2020). | |
Exhibit 99.6 | Series B Preferred Stock Purchase Warrant (Incorporated by reference to Exhibit 4.2 of the Companys Registration Statement on Form S-1 filed on May 27, 2020). | |
Exhibit 99.7 | First Amendment to Series B Preferred Stock Purchase Warrant (Incorporated by reference to Exhibit 4.3 of the Companys Registration Statement on Form S-1 filed on May 27, 2020). | |
Exhibit 99.8 | Second Amendment to Series B Preferred Stock Purchase Warrant (Incorporated by reference to Exhibit 4.4 of the Companys Registration Statement on Form S-1 filed on May 27, 2020). | |
Exhibit 99.9 | Form of certificate representing the 7.25% Convertible Notes (Incorporated by reference to Exhibit 4.2 of the Companys Current Report on Form 8-K filed on December 7, 2020). | |
Exhibit 99.10 | Indenture, dated as of December 7, 2020, between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee (Incorporated by reference to Exhibit 4.1 of the Companys Current Report on Form 8-K filed on December 7, 2020). |
SIGNATURES
After reasonable inquiry and to the best of his or its knowledge and belief, each of the undersigned certifies that the information set forth in this statement is true, complete and correct.
In accordance with Rule 13d-1(k)(1)(iii) under the Securities Exchange Act of 1934, as amended, the persons named below agree to the joint filing on behalf of each of them of this Schedule 13D with respect to the common stock of the Company.
Dated as of December 11, 2020.
ATHYRIUM OPPORTUNITIES FUND (A) LP | ||||||
By: | ATHYRIUM OPPORTUNITIES ASSOCIATES LP, its General Partner | |||||
By: | ATHYRIUM OPPORTUNITIES ASSOCIATES GP LLC, its General Partner | |||||
By: | /s/ Christian Neira | |||||
Name: | Christian Neira | |||||
Title: | Authorized Signatory | |||||
ATHYRIUM OPPORTUNITIES FUND (B) LP | ||||||
By: | ATHYRIUM OPPORTUNITIES ASSOCIATES LP, its General Partner | |||||
By: | ATHYRIUM OPPORTUNITIES ASSOCIATES GP LLC, its General Partner | |||||
By: | /s/ Christian Neira | |||||
Name: | Christian Neira | |||||
Title: | Authorized Signatory |
ATHYRIUM OPPORTUNITIES ASSOCIATES LP | ||
By: | ATHYRIUM OPPORTUNITIES ASSOCIATES GP LLC, its General Partner | |
By: | /s/ Christian Neira | |
Name: | Christian Neira | |
Title: | Authorized Signatory | |
ATHYRIUM OPPORTUNITIES ASSOCIATES GP LLC | ||
By: | /s/ Christian Neira | |
Name: | Christian Neira | |
Title: | Authorized Signatory | |
ATHYRIUM CAPITAL MANAGEMENT, LP | ||
By: | /s/ Jeffrey A. Ferrell | |
Name: | Jeffrey A. Ferrell | |
Title: | President | |
ATHYRIUM CAPITAL HOLDINGS, LLC | ||
By: | /s/ Jeffrey A. Ferrell | |
Name: | Jeffrey A. Ferrell | |
Title: | Managing Member | |
/s/ Jeffrey A. Ferrell | ||
JEFFREY A. FERRELL |
ATHYRIUM OPPORTUNITIES ADVISERS LLC | ||||||
By: | NB ALTERNATIVES ADVISERS LLC, its Sole Member | |||||
By: | /s/ Christian Neira | |||||
Name: | Christian Neira | |||||
Title: | Authorized Signatory |
NB ALTERNATIVES ADVISERS LLC | ||
By: | /s/ Christian Neira | |
Name: | Christian Neira | |
Title: | Authorized Signatory | |
NB ALTERNATIVES GP HOLDINGS LLC | ||
By: | /s/ Christian Neira | |
Name: | Christian Neira | |
Title: | Authorized Signatory | |
NB ALTERNATIVES HOLDINGS LLC | ||
By: | /s/ Christian Neira | |
Name: | Christian Neira | |
Title: | Authorized Signatory |
ATHYRIUM OPPORTUNITIES 2020 LP | ||||
By: | ATHYRIUM OPPORTUNITIES ASSOCIATES III LP, its General Partner | |||
By: | ATHYRIUM OPPORTUNITIES ASSOCIATES III GP LLC, its General Partner | |||
By: | /s/ Andrew Hyman | |||
Name: | Andrew Hyman | |||
Title: | Senior Vice President, Secretary |
ATHYRIUM OPPORTUNITIES III ACQUISITION LP | ||||
By: | ATHYRIUM OPPORTUNITIES ASSOCIATES III LP, its General Partner | |||
By: | ATHYRIUM OPPORTUNITIES ASSOCIATES III GP LLC, its General Partner | |||
By: | /s/ Andrew Hyman | |||
Name: | Andrew Hyman | |||
Title: | Senior Vice President, Secretary | |||
ATHYRIUM OPPORTUNITIES III ACQUISITION 2 LP | ||||
By: | ATHYRIUM OPPORTUNITIES ASSOCIATES III LP, its General Partner | |||
By: | ATHYRIUM OPPORTUNITIES ASSOCIATES III GP LLC, its General Partner | |||
By: | /s/ Andrew Hyman | |||
Name: | Andrew Hyman | |||
Title: | Senior Vice President, Secretary |
ATHYRIUM OPPORTUNITIES III CO-INVEST 1 LP | ||
By: | ATHYRIUM OPPORTUNITIES ASSOCIATES CO-INVEST LLC, its General Partner | |
By: | /s/ Andrew Hyman | |
Name: | Andrew Hyman | |
Title: | Senior Vice President, Secretary |
ATHYRIUM OPPORTUNITIES ASSOCIATES CO-INVEST LLC | ||
By: | /s/ Andrew Hyman | |
Name: | Andrew Hyman | |
Title: | Senior Vice President, Secretary | |
ATHYRIUM OPPORTUNITIES ASSOCIATES III GP LLC | ||
By: | /s/ Andrew Hyman | |
Name: | Andrew Hyman | |
Title: | Senior Vice President, Secretary | |
ATHYRIUM OPPORTUNITIES ASSOCIATES III LP | ||
By: | ATHYRIUM OPPORTUNITIES ASSOCIATES III GP LLC, its General Partner | |
By: | /s/ Andrew Hyman | |
Name: | Andrew Hyman | |
Title: | Senior Vice President, Secretary | |
ATHYRIUM FUNDS GP HOLDINGS, LLC | ||
By: | /s/ Jeffrey A. Ferrell | |
Name: | Jeffrey A. Ferrell | |
Title: | Managing Member |
ANNEX A
Other than as set forth below, and in the Schedule 13D to which this Annex A is attached, none of the Reporting Persons have appointed any executive officers or directors.
Athyrium Opportunities Associates GP LLC
The name and principal occupation of each of the members and executive officers of Athyrium Opportunities Associates GP LLC are listed below:
Name |
Principal Occupation | |
Athyrium Capital Management, LP | N/A (Member) | |
NB Alternatives GP Holdings LLC | N/A (Member) | |
Jeffrey A. Ferrell | President | |
Samuel Porat | President | |
Paul Wakefield | Senior Vice President | |
Andrew C. Hyman | Senior Vice President | |
Jeremy Lack | Senior Vice President | |
Christian Neira | Managing Director and Assistant Secretary | |
Blake Rice | Managing Director and Secretary | |
Kelly Maughan | Senior Vice President and Assistant Secretary | |
Kimberly Marlar | Vice President and Assistant Secretary | |
Courtney Paul | Vice President |
Athyrium Capital Management, LP
The name and principal occupation of each of the members and executive officers of Athyrium Capital Management, LP are listed below:
Name |
Principal Occupation | |
Athyrium Capital Holdings, LLC | N/A (General Partner) | |
Jeffrey A. Ferrell | President | |
Jeremy D. Lack | President | |
Andrew C. Hyman | Senior Vice President, Secretary | |
Paul A. Wakefield | Senior Vice President | |
Courtney Paul | Vice President, Assistant Secretary | |
Rashida Adams | Vice President |
Athyrium Capital Holdings, LLC
The name and principal occupation of each of the members of Athyrium Capital Holdings, LLC is listed below:
Name |
Principal Occupation | |
Jeffrey A. Ferrell | Managing Member | |
Jeremy D. Lack | Member |
Athyrium Opportunities Advisers LLC
The name and principal occupation of each of the members and executive officers of Athyrium Opportunities Advisers LLC are listed below:
Name |
Principal Occupation | |
NB Alternatives Advisers LLC | N/A (Member) | |
Anthony Tutrone | Chief Executive Officer and Managing Director | |
Samuel Porat | Managing Director | |
Blake Rice | Managing Director and Secretary | |
Christian Neira | Managing Director | |
Brien Smith | Managing Director and Chief Operating Officer | |
Mark Salzberg | Senior Vice President and Chief Compliance Officer | |
Kelly Maughan | Senior Vice President | |
Teale Long | Senior Vice President | |
Leila Biederman | Senior Vice President | |
Kimberly Marlar | Vice President and Assistant Secretary |
NB Alternatives Advisers LLC
The name and principal occupation of each of the members and executive officers of NB Alternatives Advisers LLC are listed below:
Name |
Principal Occupation | |
NB Alternatives Holdings LLC | N/A (Member) | |
Neuberger Berman AA LLC | N/A (Member) | |
Anthony Tutrone | Chief Executive Officer and Managing Director | |
John Buser | President and Managing Director | |
D. Pike Aloian | Managing Director | |
William Arnold | Managing Director | |
Matthew Bird | Managing Director | |
Peter Bock | Managing Director | |
James Bowden | Managing Director | |
Danielle Brown | Managing Director | |
Jennifer Cattier | Managing Director | |
Kent Chen | Managing Director | |
Michael Conley | Managing Director | |
Patrick Deaton | Managing Director | |
Paul Daggett | Managing Director | |
John Dyment | Managing Director | |
Ethan Falkove | Managing Director | |
Ashley Gimbel | Managing Director | |
Justin Hakimian | Managing Director | |
David Haltiner | Managing Director | |
Fred Ingham | Managing Director | |
Tiffany Johnston | Managing Director | |
Matthew Kaplan | Managing Director | |
Susan Kasser | Managing Director | |
Maura Reilly Kennedy | Managing Director | |
Scott Koenig | Managing Director | |
Andrew Komaroff | Managing Director and Chief Administrative Officer | |
David Kupperman | Managing Director |
Michael Kramer | Managing Director | |
Andrew Laurino | Managing Director | |
David Lyon | Managing Director | |
Jeff Majit | Managing Director | |
Kenny Moon | Managing Director | |
David Morse | Managing Director | |
Christian Neira | Managing Director and Assistant Secretary | |
Mark OSullivan | Managing Director | |
Josh Overbay | Managing Director | |
Philipp Patschkowski | Managing Director | |
Tristram Perkins | Managing Director | |
Benjamin Perl | Managing Director | |
Samuel Porat | Managing Director | |
Kevin Purcell | Managing Director | |
Matthew Rees | Managing Director | |
Michael Rees | Managing Director | |
Blake Rice | Managing Director and Secretary | |
Joanna Rocha Scaff | Managing Director | |
Linda Sharaby | Managing Director and Assistant Secretary | |
Jonathan Shofet | Managing Director | |
Zachary Sigel | Managing Director | |
Andrew Silberstein | Managing Director | |
Brien Smith | Managing Director and Chief Operating Officer | |
David Stonberg | Managing Director | |
Brian Talbot | Managing Director | |
Elizabeth Traxler | Managing Director | |
Peter Von Lehe | Managing Director | |
Jacquelyn Wang | Managing Director | |
Sean Ward | Managing Director | |
Matthew Wolpert | Managing Director | |
Yoshiyuki Yagisawa | Managing Director | |
Manuela Yosha | Managing Director | |
Patricia Miller Zollar | Managing Director | |
Ian Haas | Managing Director | |
Leila Biederman | Senior Vice President and Assistant Secretary | |
Mark Bonner Jr. | Senior Vice President | |
Kaci Boyer | Senior Vice President | |
Jeffrey Brooks | Senior Vice President | |
Jennifer Brouse | Senior Vice President | |
Michelle De Piante | Senior Vice President | |
Jeannette Donkervoet | Senior Vice President | |
Dominique Drenckhahn | Senior Vice President | |
Jose Luis Gonzalez Pastor | Senior Vice President and Principal | |
Frank Guglielmo | Senior Vice President | |
Henry Herms | Senior Vice President | |
Avery Kiser | Senior Vice President | |
Nikhil Krishnan | Senior Vice President | |
Eric Lai | Senior Vice President |
Steven Lloyd | Senior Vice President | |
Teale Long | Senior Vice President and Assistant Secretary | |
Jamie Lurie | Senior Vice President and Assistant Secretary | |
Michael Magee | Senior Vice President | |
Doug Manor | Senior Vice President and Principal | |
Kelly Maughan | Senior Vice President | |
James McDermott | Senior Vice President | |
Joshua Miller | Senior Vice President and Principal | |
Sandeep Mirani | Senior Vice President | |
Michael ONeill | Senior Vice President | |
Rahul Patel | Senior Vice President | |
Linda Pratka | Senior Vice President | |
Carly Brooks Prutkin | Senior Vice President | |
Will Proctor | Senior Vice President | |
Eric Render | Senior Vice President | |
Ted Rykowski | Senior Vice President | |
Mark Salzberg | Senior Vice President and Chief Compliance Officer | |
Paresh Shah | Senior Vice President | |
Rishi Shah | Senior Vice President | |
Michael Smith | Senior Vice President | |
Niketh Velamoor | Senior Vice President and Senior Anti-Money Laundering Officer | |
Sophie Ware | Senior Vice President | |
Madeline Wick | Senior Vice President | |
Matt Wiener | Senior Vice President and Principal | |
Brock Williams | Senior Vice President and Principal | |
Dean Winick | Senior Vice President | |
Michael Smith | Senior Vice President | |
Jay Berger | Senior Vice President | |
Julie Atwell | Vice President | |
Faryn Altschuler | Vice President | |
Davide Cantoro | Vice President | |
Kevin Chiu | Vice President | |
Tyler Czinege | Vice President | |
Michael Gabriel | Vice President | |
Mario Giuliani | Vice President | |
Victor Ko | Vice President | |
David Leimgruber | Vice President | |
Yilun Li | Vice President | |
Amy Liu | Vice President | |
Manuel Lorenzo | Vice President | |
Michael Lukach | Vice President | |
Kimberly Marlar | Vice President and Assistant Secretary | |
Agatha Miorelli | Vice President | |
Alexander Olsen | Vice President | |
Declan Redfern | Vice President | |
Jessica Renner | Vice President | |
Jackie Reshef | Vice President |
Ana Roa | Vice President | |
Jocelyn Ryan | Vice President and Assistant Secretary | |
Matthew Tai | Vice President | |
Matt Talbot | Vice President | |
Langston Theis | Vice President | |
Kimberly Yuhas | Vice President and Assistant Secretary | |
Leo Viola | Treasurer and Senior Vice President | |
Milca Beltre | Assistant Treasurer and Managing Director | |
Sam Frey | Associate | |
Alexander Gottlieb | Associate | |
Richard Wilson | Associate |
NB Alternatives GP Holdings LLC
The name and principal occupation of each of the members and executive officers of NB Alternatives GP Holdings LLC are listed below:
Name |
Principal Occupation | |
NB Alternatives Holdings LLC | N/A (Member) | |
Anthony Tutrone | Director, Chief Executive Officer and Managing Director | |
John Buser | President and Managing Director | |
Andrew Komaroff | Managing Director and Chief Administrative Officer | |
William Arnold | Managing Director | |
Jennifer Cattier | Managing Director | |
Matthew Kaplan | Managing Director | |
David Morse | Managing Director | |
Christian Neira | Managing Director and Assistant Secretary | |
Tristram Perkins | Managing Director | |
Michael Rees | Managing Director | |
Blake Rice | Director and Managing Director and Secretary | |
Jonathan Shofet | Managing Director | |
Brien Smith | Managing Director and Chief Operating Officer | |
David Stonberg | Managing Director | |
Mark Salzberg | Senior Vice President and Chief Compliance Officer | |
Jamie Lurie | Senior Vice President | |
Kimberly Marlar | Vice President and Assistant Secretary | |
Leo Viola | Treasurer | |
Milca Beltre | Assistant Treasurer |
NB Alternatives Holdings LLC
The name and principal occupation of each of the members and executive officers of NB Alternatives Holdings LLC are listed below:
Name |
Principal Occupation | |
Neuberger Berman AA LLC | N/A (Member) | |
Neuberger Berman Group LLC | N/A (Member) | |
Andrew Komaroff | Director, President and Chief Executive Officer | |
William Arnold | Chief Financial Officer and Executive Vice President | |
Heather Zuckerman | Executive Vice President | |
Leo Anthony Viola | Treasurer | |
Milca Beltre | Head of Tax, Assistant Treasurer and Managing Director | |
Kelly Maughan | Assistant Treasurer | |
Linda Sharaby | Secretary | |
Elvira DeCaro | Assistant Secretary | |
Blake Rice | Director and Managing Director | |
Christian Neira | Managing Director |
Athyrium Opportunities Co-Invest LLC
The name and principal occupation of each of the members and executive officers of Athyrium Opportunities Co-Invest LLC are listed below:
Name |
Principal Occupation | |
Athyrium Funds GP Holdings LLC | N/A (Managing Member) | |
Jeffrey A. Ferrell | President | |
Jeremy D. Lack | President | |
Andrew C. Hyman | Senior Vice President, Secretary | |
Paul A. Wakefield | Senior Vice President | |
Courtney Paul | Vice President, Assistant Secretary | |
Elin Strong | Vice President | |
Rashida Adams | Vice President |
Athyrium Opportunities Associates III GP LLC
The name and principal occupation of each of the members and executive officers of Athyrium Opportunities Associates III GP LLC are listed below:
Name |
Principal Occupation | |
Athyrium Funds GP Holdings LLC | N/A (Managing Member) | |
Jeffrey A. Ferrell | President | |
Jeremy D. Lack | President | |
Andrew C. Hyman | Senior Vice President, Secretary | |
Paul A. Wakefield | Senior Vice President | |
Courtney Paul | Vice President, Assistant Secretary | |
Elin Strong | Vice President | |
Rashida Adams | Vice President |
Exhibit 99.3
PROGENITY, INC.
AMENDMENT NO. 2 TO
FOURTH AMENDED AND RESTATED INVESTORS RIGHTS AGREEMENT
December 7, 2020
This Amendment No. 2 (this Amendment) to that certain Fourth Amended and Restated Investors Rights Agreement, dated as of August 27, 2019 (the Agreement), by and among Progenity, Inc., a Delaware corporation (the Company), the investors listed on Exhibit A thereto (each, an Investor and collectively, the Investors), and the holders of Common Stock listed on Exhibit B thereto, as previously amended by Amendment No. 1 to the Agreement, dated November 10, 2020. Capitalized terms used in this Amendment that are not otherwise defined herein shall have the respective meanings assigned to them in the Agreement.
RECITALS
WHEREAS, the Company and the Investors desire to amend the Agreement as set forth below;
WHEREAS, the undersigned Investors represent the holders of a majority of the Registrable Securities outstanding on the date of this Amendment and, as such, together with the Company, have the right, power and authority pursuant to Section 4.4 of the Agreement to execute and deliver this Amendment and amend the Agreement in the manner provided herein.
NOW, THEREFORE, in consideration of the mutual promises and covenants contained in this Amendment and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:
AGREEMENT
1. | The following defined term on Section 1(a)(xv) of the Agreement is hereby deleted in its entirety and replaced with the following: |
Registrable Securities means (i) the shares of Common Stock issuable or issued upon conversion of the Preferred Stock, including any shares of Common Stock issued on or before the date hereof, upon conversion of preferred stock of the Company outstanding at any time, other than shares for which registration rights have terminated pursuant to Section 2.15 hereof, (ii) the shares of Common Stock issued pursuant to the Common Stock Purchase Agreement, dated as of August 8, 2016, by and between the Company and BCI, other than shares for which registration rights have terminated pursuant to Section 2.15 hereof, (iii) the shares of Common Stock issuable or issued upon conversion of the Warrant Shares (or, following a Qualified IPO, issuable upon exercise of the Warrant), other than shares for which registration rights have terminated pursuant to Section 2.15 hereof; (iv) shares of Common Stock issuable or issued upon the conversion of the Unsecured Convertible Promissory Note dated May 8, 2020, issued to Athyrium Opportunities 2020 LP; (v) the shares of Common Stock issuable or issued upon exercise of the Convertible Notes, other than shares for which registration rights have terminated pursuant to Section 2.15 hereof; and (vi) any other shares of Common Stock issued as (or issuable upon the
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conversion or exercise of any warrant, right or other security which is issued as) a dividend or other distribution with respect to, or in exchange for or in replacement of, the shares listed in clauses (i) through (v); provided, however, that the foregoing definition shall exclude in all cases any Registrable Securities sold by a Person in a transaction in which such Persons rights under this Agreement are not assigned. Notwithstanding the foregoing, such shares of Common Stock shall only be treated as Registrable Securities if and so long as (A) they have not been sold to or through a broker or dealer or underwriter in a public distribution or a public securities transaction, (B) they have not been sold in a transaction exempt from the registration and prospectus delivery requirements of the Securities Act under Section 4(a)(1) or Rule 144 thereof so that all transfer restrictions, and restrictive legends with respect thereto, if any, are removed upon the consummation of such sale, and (C) the Holder thereof is entitled to exercise any right provided in Section 2 in accordance with Section 2.15 below.
2. | Section 1 of the Agreement shall be amended by adding the following definition in the alphabetical order, with the remaining definitions and corresponding references adjusted accordingly such that they are in alphabetical order: |
Convertible Notes means the Convertible Senior Notes due 2025 of the Company issued pursuant to an indenture dated as of December 7, 2020.
3. | This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. |
4. | This Amendment and the rights and obligations of the parties hereunder shall be governed, construed and interpreted in accordance with the laws of the State of Delaware, without giving effect to principles of conflicts of law. |
5. | Except as expressly provided in this Amendment, all terms and provisions of the Agreement shall remain unmodified and in full force and effect. |
(Signature Page Follows)
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IN WITNESS WHEREOF, the parties have executed this Amendment to the Agreement as of the date first written above.
COMPANY: | ||
PROGENITY, INC. | ||
By: | /s/ Harry Stylli |
Name: | Harry Stylli | |
Title: | Chief Executive Officer |
(Signature Page to Amendment No. 2 to the Fourth Amended and Restated Investors Rights Agreement)
IN WITNESS WHEREOF, the parties have executed this Amendment to the Agreement as of the date first written above.
INVESTORS: | ||
/s/ Harry Stylli | ||
Name: | Harry Stylli |
(Signature Page to Amendment No. 2 to the Fourth Amended and Restated Investors Rights Agreement)
IN WITNESS WHEREOF, the parties have executed this Amendment to the Agreement as of the date first written above.
INVESTORS: | ||
ATHYRIUM OPPORTUNITIES FUND (A) LP | ||
By: | Athyrium Opportunities Associates LP, its General Partner | |
By: | Athyrium Opportunities Associates GP LLC, the General Partner of Athyrium Opportunities Associates LP | |
By | /s/ Andrew C. Hyman | |
Name: | Andrew C. Hyman | |
Title: | Authorized Signatory | |
ATHYRIUM OPPORTUNITIES FUND (B) LP | ||
By: | Athyrium Opportunities Associates LP, | |
its General Partner | ||
By: | Athyrium Opportunities Associates GP LLC, the General Partner of Athyrium Opportunities Associates LP | |
By | /s/ Andrew C. Hyman | |
Name: | Andrew C. Hyman | |
Title: | Authorized Signatory |
(Signature Page to Amendment No. 2 to the Fourth Amended and Restated Investors Rights Agreement)
ATHYRIUM OPPORTUNITIES III ACQUISITION 2 LP | ||
By: | Athyrium Opportunities Associates III LP, | |
its General Partner | ||
By: | Athyrium Opportunities Associates III GP LLC, | |
the General Partner of Athyrium Opportunities Associates III LP | ||
By | /s/ Rashida Adams | |
Name: | Rashida Adams | |
Title: | Vice President | |
ATHYRIUM OPPORTUNITIES III CO-INVEST 1 LP | ||
By: | Athyrium Opportunities Associates Co-Invest LLC, | |
its General Partner | ||
By | /s/ Rashida Adams | |
Name: | Rashida Adams | |
Title: | Vice President | |
ATHYRIUM OPPORTUNITIES 2020 LP | ||
By: | Athyrium Opportunities Associates III LP, | |
its General Partner | ||
By: | Athyrium Opportunities Associates III GP LLC, | |
the General Partner of Athyrium Opportunities Associates III LP | ||
By | /s/ Rashida Adams | |
Name: | Rashida Adams | |
Title: | Vice President |
(Signature Page to Amendment No. 2 to the Fourth Amended and Restated Investors Rights Agreement)