Acacia Research (ACTG) Sold $22.3M of Oxford Nanopore in IPO, Remaining Stake Worth $280.8M

October 5, 2021 8:54 AM EDT

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Acacia Research Corporation (Nasdaq: ACTG) announced that Oxford Nanopore Technologies Limited, the company behind a new generation of nanopore-based sensing technology, whose products enable the real-time, high-performance, scalable analysis of DNA and RNA, has successfully completed its Initial Public Offering of shares on the London Stock Exchange at 425 pence per share.

The sale of 3,895,500 shares in the IPO, representing 10% of its pre-IPO holding, will generate net proceeds of $22.3 million to Acacia. Prior to the IPO, Acacia owned 38,955,000 shares, representing a 5.5% stake in Oxford Nanopore, which, as of June 30, 2021, Acacia valued at $170.2 million. Following the IPO, Acacia will hold 35,059,500 million shares in Oxford Nanopore, representing approximately 4.4% of the shares outstanding. Acacia’s remaining stake in Oxford Nanopore, based on Oxford Nanopore’s closing price as of October 4, amounts to $280.8 million which, when combined with the proceeds of the share sale, amounts to an approximate 78% uplift to the last disclosed book value of the holding as of June 30, 2021. Acacia's remaining shares in Oxford Nanopore are restricted from resale for a period of at least 180 days under customary lock-up agreements.

Clifford Press, Acacia’s President and Chief Executive Officer, commented, “Oxford Nanopore is a global leader in an emerging industry and the crown jewel of the Woodford Portfolio, which we purchased in June last year. The successful IPO is among the largest in London this year and reflects the many years of foresight and collaboration with which Neil Woodford and his team supported and financed the development of this company from its earliest stage. The recently announced strategic investment by Oracle is a further testament to the innovation and leadership of Oxford Nanopore, and we are pleased to be significant shareholders.”

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