ITEM 1.01 Entry into a Material Definitive Agreement.
On October 21, 2022, Zymeworks entered into the Sales Agreement, dated as of
October 21, 2022, with Jefferies. The Sales Agreement provides for the offer and
sale of Zymeworks' common stock from time to time through Jefferies as its sales
agent, subject to the maximum aggregate dollar amount registered pursuant to the
applicable prospectus supplement. Sales of shares of common stock through
Jefferies, if any, will be made by any method permitted by law deemed to be an
"at-the-market" offering as defined in Rule 415(a)(4) under the Securities Act
of 1933, as amended, including without limitation sales made directly on the New
York Stock Exchange or any other existing trading market for the shares of
common stock. Zymeworks will pay Jefferies a commission of up to 3.0% of the
gross sales proceeds of any shares of common stock sold through Jefferies under
the Sales Agreement. Zymeworks has also provided Jefferies with customary
indemnification and contribution rights.
In accordance with the Sales Agreement, Jefferies will use commercially
reasonable efforts to sell Zymeworks' common stock from time to time, based upon
instructions from Zymeworks (including any price, time or size limits or other
customary parameters or conditions the Company may impose). Zymeworks is not
obligated to make any sales of its common stock under the Sales Agreement. The
Sales Agreement may be terminated by Zymeworks or Jefferies upon the written
notice to the other party in accordance with the terms of the Sales Agreement.
The offering of the shares of common stock pursuant to the Sales Agreement will
terminate upon the termination of the Sales Agreement in accordance with its
terms.
The shares of common stock are being offered and sold pursuant to the
Registration Statement on Form S-3ASR (File No. 333-259970) ("Registration
Statement"), including the prospectus, dated October 1, 2021, filed by the
Company and the prospectus supplement, dated October 21, 2022, filed by
Zymeworks. The Registration Statement was adopted by Zymeworks pursuant to Rule
414 under the Securities Act of 1933, as amended.
The foregoing description of the Sales Agreement is not complete and is
qualified in its entirety by reference to the full text of the Sales Agreement,
a copy of which is filed as Exhibit 1.1 hereto and incorporated herein by
reference. The Sales Agreement is also incorporated by reference into the
Registration Statement.
A copy of the opinion of Wilson Sonsini Goodrich & Rosati, P.C. relating to the
legality of the shares of common stock issuable under the Sales Agreement is
filed as Exhibit 5.1 to this Current Report on Form 8-K and is also incorporated
by reference into the Registration Statement.
This Current Report shall not constitute an offer to sell or the solicitation of
an offer to buy the securities discussed herein, nor shall there be any sale of
such securities in any state or jurisdiction in which such offer, solicitation
or sale would be unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction.
ITEM 1.02 Termination of a Material Definitive Agreement.
On October 21, 2022, the Company, Zymeworks' subsidiary, and Jefferies mutually
terminated the Open Market Sales AgreementSM (the "Prior Sales Agreement") by
and between the Company and Jefferies, dated November 5, 2019, as amended. The
Prior Sales Agreement provided that the Company may sell its common shares, from
time to time, through an "at-the-market" equity offering program under which
Jefferies acted as sales agent. None of the Company's common shares were sold
under the Prior Sales Agreement that has been terminated.
The foregoing description of the Prior Sales Agreement is not complete and is
qualified in its entirety by reference to the full text of the Sales Agreement
and the related amendment, copies of which are filed as Exhibit 1.1 to the
Company's Current Report on Form 8-K filed with the Securities and Exchange
Commission (the "SEC") on November 6, 2019 and Exhibit 1.1 to the Company's
Current Report on Form 8-K filed with the SEC on October 1, 2021, respectively.
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ITEM 9.01 Financial Statements and Exhibits.
(d) Exhibits.
In reviewing the agreement included as an exhibit to this report, please
remember that it is included to provide you with information regarding its terms
and is not intended to provide any other factual or disclosure information about
Zymeworks or the other parties to the agreement. The agreement contains
representations and warranties made by Zymeworks. These representations and
warranties have been made solely for the benefit of the other party to the
agreement and:
• should not in all instances be treated as categorical statements of fact,
but rather as a way of allocating the risk to one of the parties if those
statements prove to be inaccurate;
• may have been qualified by disclosures that were made to the other party
in connection with the negotiation of the applicable agreement, which
disclosures are not necessarily reflected in the agreement;
• may apply standards of materiality in a way that is different from what
may be viewed as material to you or other investors; and
• were made only as of the date of the applicable agreement or such other
date or dates as may be specified in the agreement and are subject to
more recent developments.
Accordingly, these representations and warranties may not describe the actual
state of affairs as of the date they were made or at any other time. Additional
information about Zymeworks may be found elsewhere in this report and Zymeworks'
other public filings, which are available without charge through the U.S.
Securities and Exchange Commission's website at http://www.sec.gov.
Exhibit
No. Description
1.1 Open Market Sale AgreementSM, dated October 21, 2022, by and between
Zymeworks Inc. and Jefferies LLC.
5.1 Legal Opinion of Wilson Sonsini Goodrich & Rosati, P.C.
23.1 Consent of Wilson Sonsini Goodrich & Rosati, P.C. (included in
Exhibit 5.1).
104 Cover Page Interactive Data File (embedded as Inline XBRL document).
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