Item 1.01. Entry into a Material Definitive Agreement.
As disclosed under the sections entitled "Proposal No. 1-The Business Combination Proposal" beginning on page 135, ofCMLS's definitive proxy statement on Schedule 14A (the "Proxy Statement") filed with theSEC onJuly 2, 2021 ,CMLS previously entered into an Agreement and Plan of Merger, datedFebruary 9, 2021 , withS-IV Sub, Inc. , a wholly-owned subsidiary ofCMLS ("Merger Sub"), and Sema4, as amended by an Amendment to Agreement and Plan of Merger, datedMay 3, 2021 (the "Merger Agreement"). Pursuant to the Merger Agreement, on the Closing Date (as defined below), Merger Sub was merged with and into Sema4, with Sema4 surviving the Merger (the "Surviving Corporation") as a wholly owned subsidiary of the Company (the "Merger" and, together with the other transactions contemplated by the Merger Agreement, the "Business Combination"). OnJuly 21, 2021 ,CMLS held a special meeting of stockholders (the "Special Meeting"), at which theCMLS stockholders considered and adopted, among other matters, a proposal to approve the Business Combination, including (a) adopting the Merger Agreement and (b) approving the transactions contemplated by the Merger Agreement, including the Merger and the issuance of shares of Class A common stock, par value$0.0001 per share, of the Company (prior to the Closing, the "Class A common stock" and, following the Closing, the "common stock") to the former Sema4 equity holders as merger consideration (as defined in the Proxy Statement).
Pursuant to the terms and subject to the conditions set forth in the Merger
Agreement, following the Special Meeting, on
Item 2.01 of this Report discusses the consummation of the Business Combination and the entry into agreements relating thereto and is incorporated herein by reference. 1
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Item 2.01. Completion of Acquisition or Disposition of Assets.
As described above, onJuly 21, 2021 ,CMLS held the Special Meeting, at which theCMLS stockholders considered and adopted, among other matters, a proposal to approve the Merger Agreement and the Business Combination. OnJuly 22, 2021 , the parties consummated the Business Combination. In connection with the Closing, the Company changed its name from CM Life Sciences, Inc. to "Sema4 Holdings Corp. ", and theSurviving Corporation changed its name fromMount Sinai Genomics, Inc. d/b/a Sema4 to "Sema4 OpCo, Inc. " Holders of 10,188 shares ofCMLS's Class A common stock sold in its initial public offering (the "public shares") properly exercised their right to have such shares redeemed for a full pro rata portion of the trust account holding the proceeds fromCMLS's initial public offering (the "IPO"), calculated as of two business days prior to the consummation of the Business Combination, which was approximately$10.00 per share, or$101,880 in the aggregate. As a result of the Business Combination, each share of Sema4 Class B common stock, par value$0.00001 per share, was converted into 1/100th of a share of Sema4 Class A common stock, par value$0.00001 per share ("Sema4 Common Stock"), and, immediately thereafter, each share of Sema4 Common Stock and Sema4 Preferred Stock (as defined in the Proxy Statement) was cancelled and received a portion of the merger consideration, resulting in the former Sema4 equity holders who had elected to receive Closing Available Cash (as defined in the Proxy Statement) receiving an aggregate of$230,665,220 of cash and the former Sema4 equity holders receiving an aggregate of 178,336,298 shares of common stock of the Company. Additionally, each issued and outstanding share of common stock of Merger Sub converted into and became one validly issued, fully paid and nonassessable share of common stock, par value$0.01 per share, of theSurviving Corporation . Furthermore, in connection with the redemption of the public shares as described above,CMLS Holdings LLC , aDelaware limited liability company (the "Sponsor") forfeited no shares of Class B common stock, par value$0.0001 per share, of the Company (the "Class B common stock") and no private placement warrants (as defined in the Proxy Statement) held by the Sponsor. Accordingly, all the shares of Class B common stock automatically converted into common stock of the Company.
Pursuant to subscription agreements entered into on
Item 3.02. Unregistered Sales ofEquity Securities . At the Closing, the Company consummated the Business Combination and thePIPE Investment . Additionally, 11,068,750 shares of Class B common stock held by the Sponsor and certain of its affiliates automatically converted to shares of common stock as of the Closing. The disclosure under Item 2.01 of this Report is incorporated into this Item 3.02 by reference. The Company issued the shares of common stock pursuant to the Business Combination and thePIPE Investment under Section 4(a)(2) of the Securities Act and/or Rule 506 of Regulation D promulgated under the Securities Act, as a transaction by an issuer not involving a public offering. The Company issued the shares of common stock in connection with the conversion of the Class B common stock under Section 3(a)(9) of the Securities Act, as an exchange with its existing security holders exclusively where no commission or other remuneration was paid or given directly or indirectly for soliciting such exchange. The investors in thePIPE Investment represented their intentions to acquire the shares for investment only and not with a view to or for sale in connection with any distribution, and appropriate restrictive legends were affixed to the certificates representing all of the shares issued in the Business Combination and thePIPE Investment and in connection with the conversion of the Class B common stock (or reflected in restricted book entry with the Company's transfer agent). The parties also had adequate access, through business or other relationships, to information about the Company.
Item 3.03. Material Modification to Rights of Security Holders
The information set forth in Item 5.03 to this Report is incorporated herein by reference.
Item 4.01 Changes in Registrant's Certifying Accountant
On
Withum's report ("Withum's Report") onCMLS's financial statements as ofDecember 31, 2020 and the related statements of operations, changes in shareholders' equity and cash flows for the period fromJuly 10, 2020 (inception) throughDecember 31, 2020 did not contain any adverse opinion or disclaimer of opinion, nor was it qualified or modified as to uncertainty, audit scope or accounting principles, other than as follows:
Withum's Report contained a separate paragraph stating that:
"As discussed in Note 2 to the financial statements, theSecurities and Exchange Commission issued a public statement entitled Staff Statement on Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies ("SPACs") (the "Public Statement") onApril 12, 2021 , which discusses the accounting for certain warrants as liabilities. The Company previously accounted for its warrants as equity instruments. Management evaluated its warrants against the Public Statement, and determined that the warrants should be accounted for as liabilities. Accordingly, the 2020 financial statements have been restated to correct the accounting and related disclosure for the warrants." During the period fromJuly 10, 2020 (inception) throughDecember 31, 2020 and the subsequent period throughJuly 22, 2021 , there were no: (i) disagreements with Withum on any matter of accounting 15 -------------------------------------------------------------------------------- principles or practices, financial statement disclosures or audited scope or procedures, which disagreements if not resolved to Withum's satisfaction would have caused Withum to make reference to the subject matter of the disagreement in connection with its report or (ii) reportable events as defined in Item 304(a)(1)(v) of Regulation S-K. The Company has provided Withum with a copy of the disclosures made by the Company in response to this Item 4.01 and has requested that Withum furnish the Company with a letter addressed to theSEC stating whether it agrees with the statements made by the registrant in response to this Item 304(a) and, if not, stating the respects in which it does not agree. A letter from Withum is attached as Exhibit 16.1 to this Report.
The Company expects in the coming weeks that the Audit Committee will appoint a
new independent registered public accounting firm to audit the Company's
consolidated financial statements for the year ended
Item 5.01. Changes in Control of the Registrant.
The information set forth above under Item 1.01 and Item 2.01 of this Report is incorporated herein by reference.
Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
The information set forth above in the sections titled "Directors and Officers," "Executive Compensation," "Certain Relationships and Related Party Transactions" and "Indemnification of Directors and Officers" in Item 2.01 to this Report is incorporated herein by reference.
Item 5.03. Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year.
OnJuly 22, 2021 , in connection with the consummation of the Business Combination, the Company amended and restated its certificate of incorporation, effective as of the Closing (as amended, the "Amended and Restated Certificate of Incorporation"), and the Company adopted restated bylaws (the "Bylaws").
Copies of the Amended and Restated Certificate of Incorporation and the Bylaws are attached as Exhibits 3.1 and 3.2 to this Report, respectively, and are incorporated herein by reference.
The material terms of the Amended and Restated Certificate of Incorporation and the Bylaws and the general effect upon the rights of holders of the Company's capital stock are included in the Proxy Statement under the sections titled "Proposal No. 3-The Charter Approval Proposal," "Proposal No. 4- Approval of Certain Governance Provisions in the Amended and Restated Certificate of Incorporation," and "Description of Securities" beginning on pages 179, 181, and 286 of the Proxy Statement, respectively, which are incorporated herein by reference.
Item 5.06 Change in Shell Company Status
As a result of the Business Combination, the Company ceased to be a shell company. Reference is made to the disclosure in the Proxy Statement in the sections entitled "Proposal No. 1-Approval of the Business Combination" beginning on page 135 thereof, which is incorporated herein by reference.
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Item 8.01. Other Events.
On
Item 9.01. Financial Statement and Exhibits.
(a) Financial statements of businesses acquired.
The (i) audited balance sheets of Sema4 as ofDecember 31, 2020 and 2019, the related statements of operations and comprehensive loss, redeemable convertible preferred stock and stockholders' deficit and cash flows for each of the three years in the period endedDecember 31, 2020 , and the related notes and (ii) the unaudited condensed financial statements of Sema4 as ofMarch 31, 2021 and for the three months endedMarch 31, 2021 and 2020 and the related notes are included in the Proxy Statement beginning on page F-3 and are incorporated herein by reference. The (i) audited balance sheet ofCMLS as ofDecember 31, 2020 , the related statements of operations, changes in shareholders' equity and cash flows for the period fromJuly 10, 2020 (inception) throughDecember 31, 2020 , and the related notes and (ii) the unaudited condensed financial statements ofCMLS as ofMarch 31, 2021 and for the three months endedMarch 31, 2021 and the related notes are included in the Proxy Statement beginning on page F-62 and are incorporated herein by reference.
(b) Pro forma financial information.
The unaudited pro forma condensed combined financial information of the Company
as of and for the three months ended
(d) Exhibits. Incorporated by Reference Exhibit Number Description Form Exhibit Filing Date 2.1* Agreement and Plan of Merger, dated February 9, 2021, DEFM14A Annex A 07/02/2021 by and among CMLS, Merger Sub and Legacy Sema4, as amended by Amendment to Agreement and Plan of Merger dated May 3, 2021. 3.1 Third Amended and Restated Certificate of Incorporation of Sema4 Holdings Corp. 3.2 Restated Bylaws of Sema4 Holdings Corp. 4.1 Specimen Class A Common Stock Certificate. S-1/A 4.2 08/24/2020 4.2 Specimen Warrant Certificate. S-1/A 4.3 08/24/2020 4.3 Warrant Agreement, dated as of September 1, 2020, by 8-K 10.1 09/04/2020 and between CM Life Sciences, Inc. and Continental Stock Transfer & Trust Company, as warrant agent. 17
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10.1 Lockup Agreement, dated as of February 9, 2021, 8-K 10.2 02/11/2021 by and among the Company and the stockholder parties identified therein. 10.2 Amended and Restated Registration Rights Agreement, dated as of July 22, 2021, by and among the Company, certain equity holders of the Company named therein and certain equity holders of Sema4 named therein. 10.3 Subscription Agreement, dated as of February 9, 8-K 10.1 02/11/2021 2021, by and among the Company and the subscriber parties thereto. 10.4 Form of Director and Officer Indemnification Agreement. 10.5 2021 Equity Incentive Award Plan . 10.6 Form of Stock Option Agreement under the 2021 Incentive Award Plan. 10.7 Form of RSU Agreement under the 2021 Incentive Award Plan. 10.8 Form of Earn-Out RSU Agreement. 10.9 2021 Employee Stock Purchase Plan. 10.10 Amended and Restated Employment of Agreement of Eric Schadt. 10.11 Employment Agreement of Isaac Ro. 10.12 Employment Agreement of Dan Clark. 10.13 Employment Agreement of James Coffin. 10.14 Employment Agreement of Anthony Prentice. 10.15 Employment Agreement of Kareem Saad. 10.16 Employment Agreement of Karen White. 10.17 Sub-Sublease, dated as of June 6, 2017, by and between Icahn School of Medicine at Mount Sinai and the Company, as amended July 31, 2019. 10.18 Sublease Agreement, dated as of November 8, 2019, by and between Marriott International, Inc. and the Company. 10.19 Sublease, dated as of June 1, 2017, by and between Icahn School of Medicine at Mount Sinai and the Company, as amended December 22, 2017. 10.20 Sublease, dated as of April 23, 2019, by and between Icahn School of Medicine at Mount Sinai and the Company. 10.21 Lease Agreement, dated as of January 31, 2020, by and between 1 Commercial Street Associates, LLC and the Company. 18
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10.22** Master Services Agreement, dated as of April 2, 2018, by and among the Company, Icahn School of Medicine at Mount Sinai, The Mount Sinai Hospital, and the parties thereto, as amended July 31, 2019 10.23** Master Services Agreement, dated as of May 10, 2018, by and between the Company and Icahn School of Medicine at Mount Sinai, as amended July 31, 201 9. 10.24** Data Structuring and Curation Agreement, dated as of August 1, 2019, by and between Icahn School of Medicine at Mount Sinai and the Company, as amended March 11, 2020. 10.25** BioMe Biospecimen and Data Access Agreement, dated as of July 19, 2019, by and between Icahn School of Medicine at Mount Sinai and the Company. 10.26** Non-Exclusive Patent License Agreement, dated as of June 1, 2017, by and between the Company and Icahn School of Medicine at Mount Sinai. 10.27** Supply Agreement, dated as of June 20, 20 14 , by and between the Company and Illumina, Inc., and amendments thereto . 16.1 Letter from Withum to the U.S. Securities and Exchange Commission dated July 28 , 202 1 . 21.1 Subsidiaries of the Company. 99.1 Press release dated July 22, 2021. 99.2 Unaudited pro forma condensed combined financial information of the Company as of and for the three months ended March 31, 2021 and for the year ended December 30, 2020. * Certain of the exhibits and schedules to this Exhibit have been omitted in accordance with Regulation S-K Item 601(a)(5). The Company agrees to furnish a copy of all omitted exhibits and schedules to theSEC upon its request. ** The Company has omitted portions of the exhibit as permitted under Regulation S-K Item 601(b)(10). 19
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