– Labcorp Selected as Winning Bidder in
Court-Supervised Sale Process, Subject to Court and Regulatory
Approvals –
– $239 Million Cash
Bid Includes Acquisition of Substantially All of the Company's
Assets, Ensuring Business Continuity for Customers, Partners and
Employees –
SAN
FRANCISCO, April 24, 2024 /PRNewswire/
-- Invitae (OTC:NVTA), a leading medical genetics
company, announced that Labcorp (NYSE: LH), a global leader of
innovative and comprehensive laboratory services, has been selected
as the winning bidder in the Company's auction in its sale process
under Section 363 of the U.S. Bankruptcy Code. Labcorp will acquire
substantially all of the Company's assets on a going concern basis
for $239 million in cash
consideration, plus other non-cash consideration.
"The agreement with Labcorp marks a significant step in our
financial restructuring and supports our efforts to continue to
deliver innovative and industry leading products and services for
healthcare," said Ken Knight,
president and chief executive officer of Invitae.
The hearing to approve the sale is currently scheduled for
May 6, 2024. With Court approval, as
well as customary regulatory approvals and closing conditions,
Labcorp and Invitae anticipate completing the sale process in the
third quarter of 2024.
Invitae is advised in this matter by Kirkland & Ellis LLP as
legal counsel, Moelis & Company LLC as investment banker, and
FTI Consulting, Inc. as financial and communications
advisor.
About Invitae
Invitae (OTC: NVTA) is a leading medical
genetics company trusted by millions of patients and their
providers to deliver timely genetic information using digital
technology. We aim to provide accurate and actionable answers to
strengthen medical decision-making for individuals and their
families. Invitae's genetics experts apply a rigorous approach to
data and research, serving as the foundation of their mission to
bring comprehensive genetic information into mainstream medicine to
improve healthcare for billions of people.
To learn more, visit invitae.com and follow for
updates on LinkedIn, X, Instagram, and Facebook @Invitae.
About Labcorp
Labcorp (NYSE: LH) is a global leader of
innovative and comprehensive laboratory services that helps
doctors, hospitals, pharmaceutical companies, researchers and
patients make clear and confident decisions. We provide insights
and advance science to improve health and improve lives through our
unparalleled diagnostics and drug development laboratory
capabilities. The company's more than 67,000 employees serve
clients in approximately 100 countries, provided support for 84% of
the new drugs and therapeutic products approved in 2023 by the FDA,
and performed more than 600 million tests for patients around the
world. Learn more about us at www.labcorp.com.
Safe Harbor Statements
Certain statements made in this
press release, including, but not limited to, statements about
Invitae's continued operation of the business as
"debtors-in-possession"; Invitae's ability to consummate the
planned sale of the business pursuant to the chapter 11 case;
Invitae's ability to pay its current obligations when due and
satisfy its continuing obligations, including, but not limited to,
employee benefits and wages, vendors and suppliers of goods and
services, and insurance and tax obligations; Invitae's expectation
that the transactions contemplated by the Transaction Support
Agreement ("TSA") and the chapter 11 cases are consummated by the
Bankruptcy Court according to the terms outlined in the TSA, and
that the transactions result in significant reduction of its debt
balance; and any assumptions underlying any of the foregoing may be
deemed "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995, as amended.
Forward-looking statements are subject to risks and uncertainties
that could cause actual results to differ materially and reported
results should not be considered as an indication of future
performance. These risks and uncertainties include, but are not
limited to: risks and uncertainties regarding Invitae's ability to
successfully consummate and complete a plan under chapter 11 or any
strategic or financial alternative as well as Invitae's ability to
implement and realize any anticipated benefits associated with any
alternative that may be pursued, including the asset sales and wind
down of operations; Invitae's ability to continue operating in the
ordinary course while the chapter 11 cases are pending; potential
adverse effects of the chapter 11 cases on Invitae's business,
financial condition, liquidity and results of operations; Invitae's
ability to obtain timely approval by the Bankruptcy Court with
respect to motions filed in the chapter 11 cases; objections to
Invitae's recapitalization process or other pleadings filed with
the Bankruptcy Court that could protract the chapter 11 cases;
employee attrition and Invitae's ability to retain senior
management and other key personnel due to the distractions and
uncertainties caused by the chapter 11 cases; Invitae's ability to
improve its liquidity and long-term capital structure and to
address its debt service obligations through the restructuring;
Invitae's ability to comply with the restrictions imposed by the
terms and conditions of the potential financing arrangements;
Invitae's ability to effectively implement its strategic
initiatives; Invitae's liquidity needs to operate its business and
execute its strategy, and related use of cash; Invitae's ability to
maintain relationships with suppliers, customers, employees,
regulatory authorities and other third parties as a result of the
chapter 11 cases; the effects of the restructuring and the chapter
11 cases on Invitae and on the interests of various constituents,
including holders of Invitae's common stock; the Bankruptcy Court's
rulings in the chapter 11 cases, including approvals related to the
terms and conditions of any plan under chapter 11, the agreement
with Labcorp and the outcome of the chapter 11 cases,
generally; the length of time that Invitae will operate under
chapter 11 protection and the continued availability of operating
capital during the pendency of the chapter 11 cases; risks
associated with third-party motions in the chapter 11 cases, which
may interfere with Invitae's ability to consummate a plan under
chapter 11 or an alternative restructuring; increased
administrative and legal costs related to the chapter 11 process;
other litigation and inherent risks involved in a bankruptcy
process; Invitae's public securities' potential liquidity and
trading; any impact resulting from the delisting of its common
stock from the New York Stock Exchange and trading instead on the
OTC Pink Marketplace; and the other risks and uncertainties
disclosed in Invitae's annual and quarterly periodic reports and
other documents filed with the U.S. Securities and Exchange
Commission. Additionally, there can be no assurances that the sale
of the business will receive regulatory approval or that any sale
will be successfully consummated. Forward-looking statements speak
only as of the date they are made. Invitae undertakes no duty or
obligation to update or revise these forward-looking statements,
whether as a result of new information, future developments, or
otherwise, except as required by law.
Invitae Contacts:
Investor Relations
Hoki Luk
ir@invitae.com
Public Relations
Amy Sands
Hadsock
pr@invitae.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/invitae-enters-into-agreement-with-labcorp-for-sale-of-business-302126847.html
SOURCE Invitae Corporation