UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
SCHEDULE 13D/A
Under the Securities Exchange Act of 1934
(Amendment No. 3)*
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)
August 24, 2021
(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)
2.7% | |||||
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)
1.5% | |||||
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
27,361,457 | |||||
9 | Sole dispositive power
0 | |||||
10 | Shared dispositive power
27,361,457 |
11 |
Aggregate amount beneficially owned by each reporting person
27,361,457 | |||||
12 | Check box if the aggregate amount in Row (11) excludes certain shares
☐ | |||||
13 | Percent of class represented by amount in Row (11)
17.5% | |||||
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
7,256,543 | |||||
9 | Sole dispositive power
0 | |||||
10 | Shared dispositive power
7,256,543 |
11 |
Aggregate amount beneficially owned by each reporting person
7,256,543 | |||||
12 | Check box if the aggregate amount in Row (11) excludes certain shares
☐ | |||||
13 | Percent of class represented by amount in Row (11)
4.6% | |||||
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
27,925,812 | |||||
9 | Sole dispositive power
0 | |||||
10 | Shared dispositive power
27,925,812 |
11 |
Aggregate amount beneficially owned by each reporting person
27,925,812 | |||||
12 | Check box if the aggregate amount in Row (11) excludes certain shares
☐ | |||||
13 | Percent of class represented by amount in Row (11)
17.8% | |||||
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)
2.9% | |||||
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)
4.2% | |||||
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)
4.2% | |||||
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)
4.2% | |||||
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)
4.2% | |||||
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
73,668,205 | |||||
9 | Sole dispositive power
0 | |||||
10 | Shared dispositive power
73,668,205 |
11 |
Aggregate amount beneficially owned by each reporting person
73,668,205 | |||||
12 | Check box if the aggregate amount in Row (11) excludes certain shares
☐ | |||||
13 | Percent of class represented by amount in Row (11)
47.0% | |||||
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)
4.2% | |||||
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)
4.2% | |||||
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)
4.2% | |||||
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)
4.2% | |||||
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
27,361,457 | |||||
9 | Sole dispositive power
0 | |||||
10 | Shared dispositive power
27,361,457 |
11 |
Aggregate amount beneficially owned by each reporting person
27,361,457 | |||||
12 | Check box if the aggregate amount in Row (11) excludes certain shares
☐ | |||||
13 | Percent of class represented by amount in Row (11)
17.5% | |||||
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
67,127,145 | |||||
9 | Sole dispositive power
0 | |||||
10 | Shared dispositive power
67,127,145 |
11 |
Aggregate amount beneficially owned by each reporting person
67,127,145 | |||||
12 | Check box if the aggregate amount in Row (11) excludes certain shares
☐ | |||||
13 | Percent of class represented by amount in Row (11)
42.8% | |||||
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
39,765,688 | |||||
9 | Sole dispositive power
0 | |||||
10 | Shared dispositive power
39,765,688 |
11 |
Aggregate amount beneficially owned by each reporting person
39,765,688 | |||||
12 | Check box if the aggregate amount in Row (11) excludes certain shares
☐ | |||||
13 | Percent of class represented by amount in Row (11)
25.4% | |||||
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
39,765,688 | |||||
9 | Sole dispositive power
0 | |||||
10 | Shared dispositive power
39,765,688 |
11 |
Aggregate amount beneficially owned by each reporting person
39,765,688 | |||||
12 | Check box if the aggregate amount in Row (11) excludes certain shares
☐ | |||||
13 | Percent of class represented by amount in Row (11)
25.4% | |||||
14 | Type of reporting person
OO |
Explanatory Note
This Amendment No. 3 (this Amendment No. 3) 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, as amended by Amendment No. 1 thereto filed with the SEC on December 7, 2020, and as amended by Amendment No. 2 thereto filed with the SEC on June 21, 2021 (as amended to date, 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 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 the Business Services Platform (the BSP), a team within the Dyal Capital Partners (Dyal) division focused on providing client development, talent management, operational advisory and other services to the partner managers in which the Dyal funds invest. Following the completion of the Blue Owl transaction (as described below), no businesses of Alternatives Advisers utilize the BSP and allocates the expense associated with the BSP to an Alternatives Advisers-advised fund. The SEC Order had no finding of intentional wrongdoing or fraud, and found that the issues relating to the BSP expenses ceased in 2017. According to the SEC Order, with respect to certain of the Dyal funds, the Dyal funds manager did not appropriately allocate a portion of the BSP expenses to certain Dyal funds and did not have proper policies and procedures in place to ensure that all allocations were related to the utilization of the BSP. The SEC Order required Alternatives Advisers to cease and desist from committing or causing any violations and future violations of Sections 206(2) and 206(4) of the Advisers Act, as amended, and Rules 206(4)-7 and 206(4)-8 thereunder. Alternatives Advisers agreed as part of the settlement to pay disgorgement of $2,073,988 (plus prejudgment interest of $284,620) to certain Dyal funds covering 2012-2016, and pay a civil monetary penalty of $375,000 to the SEC. The civil monetary penalty was satisfied on January 3, 2019. The disgorgement and prejudgment interest was satisfied on June 7, 2019. On May 19, 2021, the strategic combination between Dyal and Owl Rock Capital Group became effective, and Dyal is now part of Blue Owl Capital Inc. (Blue Owl), a company that trades on the NYSE as OWL.
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 (as defined below) 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.
On June 1, 2021, Acquisition LP and Co-Invest LP entered into a Consent and Waiver Agreement and, on May 27, 2021, a Stock Issuance Agreement (the Stock Issuance Agreement), each with the Company, pursuant to which Acquisition LP and Co-Invest LP agreed to forgo and waive their right to receive interest in cash due on the 7.25% Convertible Notes held by Acquisition LP and Co-Invest LP, in exchange for the issuance of shares of Common Stock equal to $3,626,812.50, the amount of cash interest so waived, for a price of $2.86 per share. Pursuant to the Stock Issuance Agreement, Acquisition LP acquired 306,308 shares of Common Stock and Co-Invest LP acquired 961,807 shares of Common Stock.
On June 14, 2021, the Company consummated a private placement of units (the Private Placement), with each unit consisting of one share of Common Stock and the right to buy an additional share of Common Stock for the exercise price specified in the warrant conferring such right (the Common Stock Warrant). In connection with the Private Placement, Acquisition 2 LP purchased 8,097,166 units for a price of $2.47 per unit and with an aggregate purchase price of $20.0 million.
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, 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.
In addition, the Reporting Persons have had and intend to continue having discussions, from time to time, with management and the board of directors of the Company, and may engage with other stockholders or securityholders of the Company and other relevant parties, or take other actions concerning, the Companys business, lines of business, operations, strategy, previously announced restructuring, plans and prospects; any extraordinary corporate transactions (including, but not limited to, a merger, reorganization or liquidation); sales of a material amount of assets or divestitures; a change in the board of directors or management; a material change in the capitalization or dividend policies; other material changes in the Companys business, lines of business, or corporate structure; or similar actions.
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 73,668,205 shares of Common Stock, which represents approximately 47.0% of the outstanding shares of Common Stock. All calculations of percentage ownership in this Schedule 13D are based on (i) 79,406,317 shares of Common Stock outstanding as reported in the Companys Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2021, (ii) plus 40,000,000 shares of Common Stock issued by the Company on August 24, 2021 in a registered public offering, and (iii) plus the shares issuable upon conversion of the 7.25% Convertible Notes held by the Reporting Persons and upon exercise of the Warrant and the Common Stock Warrant by the Reporting Persons.
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 of 1933, as amended (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.
On May 31, 2021, the Company and the other stockholders party thereto entered into Amendment No. 3 to the Investors Rights Agreement in order to provide for the registration of the shares of Common Stock issued pursuant to the Stock Issuance Agreement.
On August 19, 2021, in connection with the proposed sale by the Company of Common Stock and warrants to purchase Common Stock pursuant to the Companys registration statement on Form S-3 filed with the SEC on July 30, 2021 (the Shelf Registration Statement), the Company and the stockholders party to the Investors Rights Agreement entered into that certain Notice and Waiver, pursuant to which such stockholders waived their respective right to request that the Company include the securities registrable pursuant to the Investor Rights Agreement among the securities registered on the Shelf Registration Statement.
Lock-Up Agreement
On June 9, 2021, Jeffrey A. Ferrell entered into a lock-up agreement (Lock-Up Agreement) with Piper Sandler & Co. (Piper Sandler) as private placement agent whereby Mr. Ferrell agreed that, for a period of 90 days following the date of the Lock-Up Agreement subject to certain exceptions, that he 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 may, in its sole discretion, release all or any portion of the shares 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.
Common Stock Warrant
On June 14, 2021, the Company issued a Common Stock Warrant to Acquisition 2 LP as registered holder. The Common Stock Warrant is exercisable into 8,097,166 shares of Common Stock at an exercise price of $2.84 per share, at any time and from time to time prior to its expiration on June 14, 2026.
The foregoing summary of the Investors Rights Agreement, Lock-up Agreement, Warrant, 7.25% Convertible Notes and Common Stock Warrant 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. |
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 August 27, 2021.
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 | |
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 | |
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 | |
Baffour Asante-Abedi | Managing Director | |
Milca Beltre | Managing Director and Assistant Treasurer | |
Matthew Bird | Managing Director | |
Peter Bock | Managing Director | |
James Bowden | Managing Director | |
Manuela Cattaneo | Managing Director | |
Kent Chen | Managing Director | |
Patrick Deaton | Managing Director | |
Paul Daggett | Managing Director | |
Peter DiFiore | Managing Director | |
Cedric Drui | Managing Director | |
Ethan Falkove | Managing Director | |
Jose Luis Gonzalez Pastor | Managing Director | |
Ian Haas | Managing Director | |
Justin Hakimian | Managing Director | |
David Haltiner | Managing Director | |
Fred Ingham | 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 | |
Zhengyuan Lu | Managing Director | |
David Lyon | Managing Director | |
Jeff Majit | Managing Director | |
David Morse | Managing Director | |
Christian Neira | Managing Director and Secretary | |
Josh Overbay | Managing Director | |
Philipp Patschkowski | Managing Director | |
Tristram Perkins | Managing Director | |
Benjamin Perl | Managing Director | |
Samuel Porat | Managing Director | |
Will Proctor | Managing Director | |
Joanna Rocha Scaff | Managing Director | |
Michael Schwartz | 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 | |
Peter Sterling | Managing Director | |
David Stonberg | Managing Director | |
Brian Talbot | Managing Director | |
Elizabeth Traxler | Managing Director | |
Peter Von Lehe | Managing Director | |
Jacquelyn Wang | Managing Director | |
Matthew Wolpert | Managing Director | |
Yoshiyuki Yagisawa | Managing Director | |
Patricia Miller Zollar | Managing Director | |
Jay Berger | Senior Vice President | |
Leila Biederman | Senior Vice President and Assistant Secretary | |
Mark Bonner Jr. | Senior Vice President | |
Kaci Boyer | Senior Vice President | |
Jeffrey Brooks | Senior Vice President | |
Michael Chinni | Senior Vice President and Controller | |
Kevin Chiu | Senior Vice President | |
Alex Conyers | Senior Vice President | |
Alexandra Cooke | Senior Vice President | |
Tyler Czinege | Senior Vice President | |
Krystle DaSilva | Senior Vice President | |
Michelle De Piante | Senior Vice President | |
Jeannette Donkervoet | Senior Vice President | |
Dominique Drenckhahn | Senior Vice President | |
Hiroyki Fukuda | Senior Vice President | |
Frank Guglielmo | Senior Vice President | |
Henry Herms | Senior Vice President | |
Boryana Karastoyanova | Senior Vice President |
Avery Kiser | Senior Vice President | |
Victor Ko | 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 | |
Farshad Mashayekhi | Senior Vice President | |
Doug Manor | Senior Vice President and Principal | |
Kelly Maughan | Senior Vice President | |
Joshua Miller | Senior Vice President and Principal | |
Sandeep Mirani | Senior Vice President | |
Michael ONeill | Senior Vice President | |
Jacqueline Reshef | 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 | |
David Zolot | Senior Vice President | |
Julie Atwell | Vice President | |
Faryn Altschuler | Vice President | |
Jeremy Deutsch | Vice President | |
Colin Foley | Vice President | |
Mario Giuliani | Vice President | |
David Leimgruber | Vice President | |
Yilun Li | Vice President | |
Amy Liu | Vice President | |
Manuel Lorenzo | Vice President | |
Jordan Mark | Vice President | |
Kimberly Marlar | Vice President and Assistant Secretary | |
Di Meng | Vice President | |
Yi Pan | Vice President | |
Declan Redfern | Vice President | |
Christopher Rosser | Vice President | |
Jocelyn Ryan | Vice President and Assistant Secretary | |
Ana Roa Sarmiento | Vice President | |
Giannina Sy | Vice President | |
Matthew Tai | Vice President | |
Langston Theis | Vice President | |
Kimberly Yuhas | Vice President and Assistant Secretary | |
Leo Viola | Senior Vice President and Treasurer |
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 | |
Manuela Cattaneo | Managing Director | |
Matthew Kaplan | Managing Director | |
David Morse | Managing Director | |
Christian Neira | Managing Director and Assistant Secretary | |
Tristram Perkins | Managing Director | |
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 | |
Henry Herms | Senior Vice President | |
Michael Beebe | Senior Vice President | |
Kimberly Marlar | Vice President and Assistant Secretary | |
Leo Viola | Treasurer | |
Milca Beltre | Head of Tax |
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 and Managing Director | |
Kelly Maughan | Assistant Treasurer | |
Linda Sharaby | Secretary | |
Elvira DeCaro | Assistant Secretary | |
Christian Neira | Managing Director | |
Michael Chinni | Controller |
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 99.5
August 19, 2021
NOTICE AND WAIVER
Reference is made to that certain Fourth Amended and Restated Investors Rights Agreement, dated as of August 27, 2019, as amended by Amendment No. 1 on November 10, 2020, as further amended by Amendment No. 2 on December 7, 2020, and as further amended by Amendment No. 3 on May 31, 2021, by and among Progenity, Inc., a Delaware corporation (the Company), and each of the investors listed on Schedule A hereto, each of which is referred to in this Notice and Waiver (the Waiver) as an Investor (the Investors Rights Agreement).
Notice of Registration of Shares.
The Company is considering an underwritten primary offering of its shares of common stock (the Common Stock) and warrants to purchase shares of Common Stock pursuant to its registration statement on Form S-3 (the Follow-On Offering) filed with the Securities and Exchange Commission, in accordance with the Securities Act of 1933, as amended (the Securities Act) on July 30, 2021 and declared effective on August 6, 2021 (the Registration Statement). Pursuant to Subsection 2.2 of the Investors Rights Agreement, the Company is obligated to (i) provide notice to Investors of the Companys intention if the Company proposes to register any of its Common Stock under the Securities Act in connection with the public offering of such securities and (ii) cause to be registered all of the Registrable Securities (as defined in the Investors Rights Agreement) that Investors have requested to be included in such registration, subject to the provisions of Subsection 2.7 of the Investors Rights Agreement. Notice is hereby being delivered by the Company pursuant to Subsection 2.2 of the Investors Rights Agreement.
Confirmation of Certain Matters; Waivers.
By countersigning below, each of the undersigned Investors (i) acknowledges receipt of notice of the Follow-On Offering provided by the Company pursuant to Section 2.2 of the Investors Rights Agreement; and (ii) waives its rights under Section 2.2 of the Investors Rights Agreement to request that the Company include any Registrable Securities in the Registration Statement. Notwithstanding the foregoing, the waivers provided above shall be effective only as to the Follow-On Offering and shall in no way affect or impair any of the undersigned Investors other rights under the Investors Rights Agreement or any other agreement between the Company and any of the undersigned Investors.
Each of the signatories hereto understands that this waiver shall be automatically terminated and be of no further force and effect if (a) the Company notifies the underwriter of the Follow-On Offering that it does not intend to proceed with the Follow-On Offering, (b) the underwriting agreement for the Follow-On Offering does not become effective, or if such underwriting agreement (other than the provisions thereof which survive termination) shall terminate or be terminated prior to payment for and delivery of the Common Stock to be sold thereunder, or (c) the final prospectus used to sell Common Stock in the Follow-On Offering is not filed by, or the Follow-On Offering is not completed by August 31, 2021.
IN WITNESS HEREOF, the parties have executed this Notice and Waiver as of the date first written above.
PROGENITY, INC. | ||
By: | /s/ Harry Stylli | |
Name: | Harry Stylli | |
Title: | Chief Executive Officer |
[Signature Page to Notice and Waiver]
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/ Andrew Hyman | |
Name: | Andrew Hyman | |
Title: | Authorized Signatory | |
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 Hyman | |
Name: | Andrew 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 Hyman | |
Name: | Andrew Hyman | |
Title: | Authorized Signatory |
[Signature Page to Notice and Waiver]
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/ Andrew Hyman | |
Name: | Andrew Hyman | |
Title: | Authorized Signatory | |
ATHYRIUM OPPORTUNITIES III ACQUISITION 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/ Andrew Hyman | |
Name: | Andrew Hyman | |
Title: | Authorized Signatory | |
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: | Authorized Signatory |
[Signature Page to Notice and Waiver]
/s/ Harry Stylli | ||
Harry Stylli |
[Signature Page to Notice and Waiver]
Schedule A
Athyrium Opportunities 2020 LP
Athyrium Opportunities Fund (A) LP
Athyrium Opportunities Fund (B) LP
Athyrium Opportunities III Acquisition 2 LP
Athyrium Opportunities III Acquisition LP
Athyrium Opportunities III Co-Invest 1 LP
Harry Stylli
[Schedule A to Notice and Waiver]