Penumbra, Inc. (NYSE:PEN) Files An 8-K Entry into a Material Definitive Agreement
On September 3, 2019, Penumbra, Inc. (the “Company”) and South Loop 1, LLC (“Landlord”) entered into a triple net lease agreement (the “Lease”) relating to the lease of additional space at the Company’s headquarters located at Harbor Bay Business Park, Alameda, California. to the Lease, the Company agreed to lease from Landlord an aggregate of approximately 126,700 square feet of rentable area (the “Premises”) at the to-be-constructed building located at 1310 Harbor Bay Parkway, Alameda, California 94502 (the “Building”).
The term of the Lease will commence on the earlier of (i) the date upon which the Company commences to conduct business in the Premises, and (ii) the date upon which the Premises are “Ready for Occupancy,” as that term is defined in the Lease (the “Lease Commencement Date”), and it expires on the last day of the one hundred eighty-second (182nd) full month following the Lease Commencement Date. The Company has the option to renew the Lease for up to three (3) additional five (5) year periods at the fair market rental value at the time of each respective extension, subject to terms described in the Lease.
The initial annual base rent under the Lease will be determined based on the terms of the Lease and the total development costs incurred in connection with the development of the Premises, starting sixty (60) days after the Lease Commencement Date and increased on each anniversary of the Lease Commencement Date by three percent (3%). The Lease also provides for a tenant improvement allowance in an amount equal to $90.00 per square foot of the Building, or approximately $11.4 million, towards the design and construction of certain tenant improvements made to the Building, subject to the terms set forth in the Lease.
The Company has a right of first offer to lease any space that becomes available in the buildings to be constructed at 1410 Harbor Bay Parkway and 1430 Harbor Bay Parkway, Alameda, California, subject to the terms described in the Lease.
There is no material relationship between the Company, or any of its affiliates, and Landlord, or any of its affiliates, other than the contractual relationship under the Lease.
The foregoing description of the Lease does not purport to be complete and is qualified in its entirety by reference to the full text of the Lease, a copy of which will be filed as an exhibit to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2019.
The information set forth under Item 1.01 of this Current Report on Form 8-K is incorporated into this Item 2.03 by reference.
About Penumbra, Inc. (NYSE:PEN)
Penumbra, Inc. (Penumbra) is an interventional therapies company. The Company designs, develops, manufactures and markets medical devices. The Company has a portfolio of products that addresses medical conditions and significant clinical needs across two markets, neuro and peripheral vascular. The conditions that its products address include ischemic stroke, hemorrhagic stroke and various peripheral vascular conditions that can be treated through thrombectomy and embolization procedures. The Company focuses on developing, manufacturing and marketing products for use by specialist physicians, including interventional neuroradiologists, neurosurgeons, interventional neurologists, interventional radiologists and vascular surgeons. Its neuro products include Neurovascular Access, Ischemic Stroke, Neurovascular Embolization and Neurosurgical Tools. The Company’s peripheral vascular products include Peripheral Embolization and Peripheral Thrombectomy.
An ad to help with our costs