Versartis, Inc. (NASDAQ:VSAR) Files An 8-K Entry into a Material Definitive Agreement
Item1.01
| Entry into a Material Definitive Agreement. |
On March 17, 2017, Versartis, Inc. (the
Company) and Bohannon Associates, a
California partnership (Landlord),
entered into a lease agreement (the
Lease) for approximately 34,464
rentable square feet located in the building located at 1020
Marsh Road, Menlo Park, California (the 1020
Space) and for approximately 17,432 rentable square
feet located on the second floor of the building located at 1060
Marsh Road, Menlo Park, California (the 1060
Space, and collectively with the 1020 Space, the
Premises). The Premises will serve as
the Companys corporate headquarters.
The anticipated delivery date of the 1020 Space is April10, 2017.
The anticipated delivery date for the 1060 Space is November1,
2017. The initial term of the Lease is 93 months commencing on
the date that is 120 days after the 1020 Space is delivered (the
Term), with one renewal option for a
five-year term. The Company has the option to terminate the Lease
with respect to the 1060 Space by so notifying Landlord on or
before October31, 2017, in which event the Term of the Lease with
respect to the 1020 Space will be reduced to 86 months.
With respect to the 1020 Space, base rent shall be $198,168 per
month, subject to 3% annual increases. With respect to the 1060
Space, base rent shall be $100,234 per month, subject to 3%
annual increases. In addition to the base rent, the Company shall
pay additional rent for the Companys proportionate share of
operating expenses, taxes, utilities and insurance expenses for
the complex in which the Premises are located.
As an inducement to enter into the Lease, Landlord will provide
the Company with a $1,895,520 and a $958,760 tenant improvement
allowance for the 1020 Space and the 1060 Space, respectively.
The Company is providing the Landlord with a letter of credit to
secure the Companys obligations under the Lease in the initial
amount of $2,378,016, to be increased to $3,580,824 if the
Company does not elect to terminate the Lease with respect to the
1060 Space, which is subject to reductions in future years if
certain financial hurdles are met.
The foregoing summary 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 Companys Quarterly Report on Form 10-Q for the
fiscal quarter ended March31, 2017 and incorporated herein by
reference.
| Item2.03 |
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. |
The information set forth above and referenced under Item 1.01 is
hereby incorporated by reference into this Item 2.03.
About Versartis, Inc. (NASDAQ:VSAR)
Versartis, Inc. is an endocrine-focused biopharmaceutical company. The Company is engaged in developing long-acting recombinant human growth hormone (rhGH), somavaratan (VRS-317), for growth hormone deficiency (GHD), an orphan disease. The Company’s product pipeline includes VRS-317 and XTEN Technology. The Company’s VRS-317 combines the rhGH amino acid sequence utilized in approved rhGH products with a half-life extension technology, XTEN, to enable less frequent administration. The XTEN technology consists of hydrophilic amino acids added at the genetic level as part of the manufacturing process. The Company’s XTEN is a recombinant polypeptide designed to extend the in vivo half-life of peptides and proteins in a tunable manner. The XTEN sequence consists of hydrophilic amino acids and possesses various additional properties, which are used for the development of protein pharmaceuticals. Versartis, Inc. (NASDAQ:VSAR) Recent Trading Information
Versartis, Inc. (NASDAQ:VSAR) closed its last trading session up +0.35 at 20.50 with 326,328 shares trading hands.