Item 1.01. Entry into a Material Definitive Agreement.
OnNovember 30, 2021 , the Company entered into a letter agreement (the "U.S. Letter Agreement") with China International Capital Corporation Limited,Goldman Sachs Gao Hua Securities Co. Ltd. ,Goldman Sachs (Asia) L.L.C. , andJ.P. Morgan Securities (China) Company Limited , as the representatives (the "Representatives") of the several underwriters listed on Schedule I thereto (the "Underwriters"), which sets forth certain arrangements with respect to matters in relation to the registration of the RMB Shares inthe United States pursuant to the Securities Act and the rights and obligations of each party to theU.S. Letter Agreement in such matters. The Company made certain customary representations, warranties and covenants concerning the Company, the RMB Shares, the STAR Offering and theU.S. Registration Documents in theU.S. Letter Agreement and also agreed to indemnify the Representatives and the Underwriters against certain liabilities, including liabilities under the Securities Act. The representations and warranties and other statements in theU.S. Letter Agreement (i) speak only as to the date on which they were made, and may be modified or qualified by disclosures, agreements or understandings among the parties, which the parties believe are not required by the securities laws to be publicly disclosed, and (ii) may be subject to a different materiality standard than the standard that is applicable to disclosures to investors. Moreover, information concerning the subject matter of the representations and warranties and other statements made in theU.S. Letter Agreement would likely change after the date thereof, and subsequent information may or may not be fully reflected in the Company's public disclosures. Accordingly, investors should not rely upon representations and warranties and other statements in theU.S. Letter Agreement as factual characterizations of the actual state of affairs of the Company. Investors should instead look to disclosures contained in the Company's reports under the Securities Exchange Act of 1934, as amended. The foregoing description of certain terms of theU.S. Letter Agreement and the transactions contemplated thereby does not purport to be complete and is subject to, and qualified in its entirety by, the full text of theU.S. Letter Agreement, which is attached as Exhibit 1.1 hereto and is incorporated by reference herein. A copy of the opinion of Mourant Ozannes, relating to the legality of the RMB Shares being sold in the STAR Offering, is filed as Exhibit 5.1 hereto and is incorporated by reference herein. --------------------------------------------------------------------------------
Item 8.01. Other Events.
OnDecember 1, 2021 , the Company entered into an agreement governed by the PRC law with the Underwriters in connection with the STAR Offering (the "PRC Underwriting Agreement"). Pursuant to the PRC Underwriting Agreement, the Company agreed to offer 115,055,260 ordinary shares (or 132,313,260 ordinary shares if China International Capital Corporation Limited exercises its option to obligate us to issue additional ordinary shares in full), par value$0.0001 per share, which represents 8.62% (or 9.79% if China International Capital Corporation Limited exercises its option to obligate us to issue additional ordinary shares in full) of the Company's total outstanding ordinary shares as ofOctober 31, 2021 , after giving effect to the shares offered. The public offering price of the RMB Shares isRMB192.60 per ordinary share, which equates toHK$234.89 per ordinary share andUS$391.68 per American Depositary Share ("ADS"), based on an assumed exchange rate of RMB0.81996 toHK$1.00 andRMB6.3924 toUS$1.00 . Each ADS represents 13 ordinary shares. The gross proceeds to the Company from the STAR Offering, before deducting underwriting commissions and other estimated offering expenses, are expected to be approximatelyRMB22.2 billion , or approximatelyUS$3.5 billion , based on an assumed exchange rate ofRMB6.3924 toUS$1.00 . The Company expects to use the net proceeds from the STAR Offering to fund its research and clinical development, construction of its research and development centers and a manufacturing plant inChina , sales and marketing force expansion inChina , and for working capital and general corporate purposes. Pursuant to the terms and subject to the conditions to closing as set forth in the PRC Underwriting Agreement, the Underwriters have agreed to procure subscription applications for the RMB Shares and undertake other actions to facilitate the sale, offering and distribution of the RMB Shares in the PRC. In particular, in accordance with the rules of the SSE, affiliates of China International Capital Corporation Limited andGoldman Sachs Gao Hua Securities Co. Ltd. (the "PRC Joint Sponsors") will participate in the STAR Offering as strategic investors and subscribe for up to 2% of the total RMB Shares to be sold in the STAR Offering for their own accounts using their own funds. In the event where there are insufficient orders to subscribe for the RMB Shares, the Underwriters have agreed to purchase such remaining amount in proportion to their respective subscription commitment specified in certain underwriting syndicate agreement among all of the Underwriters. The Company made certain customary representations, warranties and covenants concerning the Company, the RMB Shares, the STAR Offering and the PRC Prospectus in the PRC Underwriting Agreement and also agreed to indemnify the Underwriters against certain liabilities. In connection with the STAR Offering, the Company included the following risk factor in the Preliminary Prospectus Supplement and the Final Prospectus Supplement, which also supplements the risk factors described under "Item 1A. Risk Factors" in the Company's Annual Report on Form 10-K for the year endedDecember 31, 2020 and Quarterly Reports on Form 10-Q for the quarters endedMarch 31, 2021 ,June 30, 2021 andSeptember 30, 2021 , and should be read in conjunction with the other risk factors presented in such Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
Risks Related to the RMB Shares, Offshore Shares, American Depositary Shares and the STAR Offering
The triple listing of our ADSs, Offshore Shares and RMB Shares may adversely affect the liquidity and value of our ADSs, Offshore Shares and/or RMB Shares.
Our ADSs are traded on the NASDAQ, our existing ordinary shares maintained on our Cayman register inCayman Islands andHong Kong register inHong Kong , or Offshore Shares, are traded on the HKEx, and our RMB Shares will be traded on the STAR Market upon completion of the STAR Offering. The triple listing of our ADSs, Offshore Shares and RMB Shares may dilute the liquidity of these securities in one or all three markets and may adversely affect the maintenance of an active trading market for ADSs inthe United States , the Offshore Shares inHong Kong , or the RMB Shares in the PRC. The price of our ADSs, Offshore Shares and RMB Shares could also be adversely affected by trading of our securities on other markets. We may decide at some point in the future to delist our RMB Shares from the STAR Market, and our shareholders may approve such delisting. We cannot predict the effect such delisting of our RMB Shares on the STAR Market would have on the market price of our ADSs on the NASDAQ or our Offshore Shares on the HKEx. --------------------------------------------------------------------------------
Forward-Looking Statements
This Current Report on Form 8-K contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws, including statements regarding the STAR Offering. Actual results may differ materially from those indicated in the forward-looking statements as a result of various important factors, including the possibility that the conditions, including market conditions and customary closing conditions related to the STAR Offering, will not be met and thatBeiGene will be unable to consummate the STAR Offering; the possibility thatBeiGene will not realize the expected benefits of the transaction;BeiGene's ability to demonstrate the efficacy and safety of its drug candidates; the clinical results for its drug candidates, which may not support further development or marketing approval; actions of regulatory agencies, which may affect the initiation, timing and progress of clinical trials and marketing approval;BeiGene's ability to achieve commercial success for its marketed medicines and drug candidates, if approved;BeiGene's ability to obtain and maintain protection of intellectual property for its medicines and technology;BeiGene's reliance on third parties to conduct drug development, manufacturing and other services;BeiGene's limited experience in obtaining regulatory approvals and commercializing pharmaceutical products and its ability to obtain additional funding for operations and to complete the development and commercialization of its drug candidates and achieve and maintain profitability; the impact of the COVID-19 pandemic on theBeiGene's clinical development, regulatory, commercial, and other operations, as well as those risks more fully discussed in the section entitled "Risk Factors" inBeiGene's most recent quarterly report on Form 10-Q as well as discussions of potential risks, uncertainties, and other important factors inBeiGene's subsequent filings with theU.S. Securities and Exchange Commission . All information in this Current Report is as of the date of this Current Report, andBeiGene undertakes no duty to update such information unless required by law.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits. Exhibit No. Description 1.1U.S. Letter Agreement, dated as ofNovember 30, 2021 , by and among the Company and China International Capital
Gao Hua Securities Co. Ltd. ,Goldman Sachs (Asia)
L.L.C., and J.P. Morgan
Securities (China) Company Limited , as the
representatives of the several
underwriters listed on Schedule I thereto 5.1 Opinion of Mourant Ozannes 23.1 Consent of Mourant Ozannes (included in Exhibit 5.1) 104 The cover page from this Current Report on Form
8-K, formatted in Inline XBRL
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