Business
Acacia Research Reports Second Quarter 2020 Financial Results
Acquires Woodford portfolio of life science assets for $282 million (£223.9 million); Recovered $185 million to date in sales of certain acquired assets NEW
About this update from Acacia Research Corporation
[{"type":"text","content":"\nAcquires Woodford portfolio of life science assets for $282 million (£223.9 million);\nRecovered $185 million to date in sales of certain acquired assets\n\n NEW YORK--(BUSINESS WIRE)--\nAcacia Research Corporation (“we,” “us,” “our,” “Acacia” or “the Company”) (Nasdaq: ACTG) today reported results for the three-month period ended June 30, 2020.\n\n\nClifford Press, Chief Executive Officer, stated, “We announced our first Approved Transaction, under our strategic alliance with Starboard Value LP (“Starboard”), acquiring the former Woodford portfolio of life science assets for $282 million from LF Equity Income Fund. To date, we have recovered approximately $185 million through the sale of securities of certain public companies in the portfolio. Notably, the remaining positions include a 6% stake in Oxford Nanopore and a 5% stake in Immunocore. In aggregate, our sales to date and the potential of our remaining holdings represent a strong path to increasing book value. This transaction demonstrates our ability to navigate complex financial structures, identifying and executing on opportunities, supported by our ready access to capital.”\n\n\nMr. Press continued, “As of the end of the second quarter, the market value of the remaining public securities in the portfolio was approximately $50 million. The Woodford portfolio is a mix of public and private company securities. Under GAAP, we assigned the portfolio purchase price first to the public securities at market value, and the residual value to the private company assets. We will mark the public assets to market each quarter, and we will adjust our carrying value in the private assets based on any observed primary or secondary transactions in those companies’ shares or recognize any impairment.”\n\n\n“During the quarter, we recognized $63 million of non-cash costs associated with an increase in our derivative liability related to our warrants and preferred, as our share price increased during the quarter,” added Mr. Press. “This brings the aggregate value of non-cash liability associated with these warrants and embedded derivatives to a total of $95 million, or $1.93 per share. These are non-cash items, and upon exercise or expiration, would be eliminated and booked to equity. Our current book value at June 30 is $164.7 million, or $3.36 per share, as reduced by these liabilitie...