Brii Biosciences Ltd. and Broncus Holding Corp. were among Hong Kong-listed firms that disclosed cash deposits at troubled US lender Silicon Valley Bank, with most emphasizing the amounts were immaterial to their operations.
(Bloomberg) — Brii Biosciences Ltd. and Broncus Holding Corp. were among Hong Kong-listed firms that disclosed cash deposits at troubled US lender Silicon Valley Bank, with most emphasizing the amounts were immaterial to their operations.
At least a dozen firms, mainly involved in biotechnology, listed SVB as their banker in exchange filings, according to activist investor and founder of Webb-site.com David Webb. That puts hundreds of millions dollars at risk for these small-cap firms, of which many are in their early stages of operation and unprofitable.
Among the companies, Brii Biosciences had the highest percentage of cash and bank balances at SVB. The firm said in an exchange filing Sunday that “the existing cash and bank balances of the company continue to be sufficient to meet its working capital, capital expenditures and material cash requirements from known contractual obligations for the next three years.”
Shares of SVB-exposed companies traded mixed in Hong Kong on Monday morning.
“Most think that SVB is an idiosyncratic risk that is being bailed out by the US authorities,” said Hao Hong, chief economist at at Grow Investment Group. “For now, the market is choosing to overlook these technical details.”
Here’s a look at the companies that have disclosed exposure to SVB:
Brii Biosciences Ltd.
In its filing to the Hong Kong stock exchange, Brii Biosciences said less than 9% of its total cash and bank balances was held at SVB as of Feb. 28. It’s working closely with SVB and the FDIC to monitor updates of the incident and minimize any potential impact.
Broncus Holding Corp.
The company said about $11.8 million, or about 6.5% of its cash and cash equivalents, was deposited at SVB as of March 10. “The company is actively working towards preserving and recovering its deposits at SVB,” it said in a filing.
BeiGene Ltd.
The biopharmaceutical firm said its uninsured cash deposits held at SVB represented 3.9% of its total cash and cash equivalents as of December 31. “The company does not expect the recent developments with SVB to significantly impact its operations.”
Zai Lab Ltd.
The developer of cancer treatments said it had an “immaterial” 2.3% exposure to SVB out of its $1,008.5 million total cash and cash equivalents as of December 31, 2022.
Sirnaomics Ltd.
The firm had some $3.3 million of cash deposited in its account with SVB, accounting for less than 3% of unaudited total cash and cash equivalents as of March 10.
Everest Medicines Ltd.
The firm said it has an “immaterial amount of cash” on deposit at SVB, which is less than 1% of the total cash balance.
–With assistance from Charlotte Yang.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.