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UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION
Defined terms included below and not otherwise defined in this Exhibit 99.1 have the same meaning as terms defined and included elsewhere
in the Current Report on Form 8-K filed with the Securities and Exchange Commission on November 7, 2022. Unless the context otherwise requires, the Company refers to OmniAb, Inc., a
Delaware Corporation ( OmniAb ) (f/k/a Avista Public Acquisition Corp. II, a Cayman Islands exempted company, APAC ) and its consolidated subsidiaries after the Closing, and APAC prior to the Closing. Legacy OmniAb
refers to OmniAb Operations, Inc., a Delaware corporation (f/k/a OmniAb, Inc.) prior to the Closing, which prior to the Separation, was a wholly owned subsidiary of Ligand Pharmaceuticals Incorporated, a Delaware corporation. The Company acquired
Legacy OmniAb through the Business Combination.
The following unaudited pro forma condensed combined financial information presents
the combination of the financial information of Legacy OmniAb and APAC adjusted to give effect to the Business Combination. The following unaudited pro forma condensed combined financial information has been prepared in accordance with
Article 11 of Regulation S-X.
The unaudited pro forma condensed combined balance
sheet as of June 30, 2022 combines the historical balance sheets of Legacy OmniAb and APAC on a pro forma basis as if the Business Combination had been consummated on June 30, 2022. The unaudited pro forma condensed combined statements of
operations for the six months ended June 30, 2022 and year ended December 31, 2021 combine the historical statements of operations of Legacy OmniAb and APAC for such period on a pro forma basis as if the Business Combination had been
consummated on January 1, 2021, the beginning of the earliest period presented.
The pro forma condensed combined financial
information may not be useful in predicting the future financial condition and results of operations of the Company. The actual financial position and results of operations may differ significantly from the pro forma amounts reflected herein due to
a variety of factors.
Prior to the closing of the Business Combination, each of APAC s public shareholders had the right to redeem
all or a portion of such shareholder s public shares for cash equal to their pro rata share of the aggregate amount on deposit (as of two business days prior to the Closing) in the Trust Account. The unaudited condensed combined pro forma
financial information reflects actual redemptions of 21,713,864 shares of APAC s Class A Ordinary Shares at approximately $10.32 per share, or $224,048,747 in the aggregate.
The following summarizes the pro forma capitalization of the Company immediately after the Business Combination:
| Shares | % | |||||||
| APAC s public shareholders (1) | 1,286,136 | 1.1 | % | |||||
| Sponsor and related parties (2)(3) | 15,922,934 | 13.9 | % | |||||
| Legacy OmniAb stockholders (4) | 97,611,789 | 85.0 | % | |||||
| Pro Forma Common Stock (5) | 114,820,859 | 100.0 | % |
Legacy OmniAb was determined to be the accounting acquirer in the Business Combination based on the following predominate factors:
The Business Combination was accounted for as a reverse recapitalization in accordance with GAAP, whereby APAC was
treated as the acquired company and Legacy OmniAb was treated as the acquirer. Accordingly, for accounting purposes, the Business Combination was treated as the equivalent of Legacy OmniAb issuing stock for the net assets of APAC, accompanied by a
recapitalization. The net assets of APAC were stated at historical cost, with no goodwill or other intangible assets recorded. Subsequent presentations of the results of operations presented for the period prior to the Business Combination are those
Assumptions and estimates underlying the unaudited pro forma adjustments included in the unaudited pro forma condensed
combined financial statements are described in the accompanying notes. The unaudited pro forma condensed combined financial statements have been presented for illustrative purposes only and are not necessarily indicative of the operating results and
financial position that would have been achieved had the Business Combination occurred on the dates indicated. Further, the unaudited pro forma condensed combined financial statements do not purport to project the future operating results or
financial position of the Company following the completion of the Business Combination. The unaudited pro forma adjustments represent management s estimates based on information available as of the date on which these unaudited pro forma
condensed combined financial statements are prepared and are subject to change as additional information becomes available and analyses are performed.
UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET AS OF JUNE 30, 2022
| Legacy OmniAb (Historical) | APAC (Historical) | Autonomous Entity Adjustments (Note 3) | Transaction Accounting Adjustments (Note 3) | Pro Forma Combined | ||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | $ | 159 | $ | 1,840 | (a | ) | $ | 236,098 | (b | ) | $ | 94,930 | |||||||||||||||
| (4,025 | ) | (c | ) | |||||||||||||||||||||||||
| (16,072 | ) | (d | ) | |||||||||||||||||||||||||
| 15,000 | (e | ) | ||||||||||||||||||||||||||
| (750 | ) | (i | ) | |||||||||||||||||||||||||
| (224,049 | ) | (m | ) | |||||||||||||||||||||||||
| 86,729 | (n | ) | ||||||||||||||||||||||||||
| Accounts receivable, net | 8,180 | (8,180 | ) | (j | ) | |||||||||||||||||||||||
| Prepaid expenses | 1,081 | 533 | 1,614 | |||||||||||||||||||||||||
| Other current assets | 3,970 | (3,280 | ) | (d | ) | 690 | ||||||||||||||||||||||
| Total current assets | 13,231 | 692 | 1,840 | 81,471 | 97,234 | |||||||||||||||||||||||
| Investments held in Trust Account | 236,098 | (236,098 | ) | (b | ) | |||||||||||||||||||||||
| Deferred income taxes | 822 | 822 | ||||||||||||||||||||||||||
| Intangible assets, net | 169,050 | 169,050 | ||||||||||||||||||||||||||
| Goodwill | 83,979 | 83,979 | ||||||||||||||||||||||||||
| Property and equipment, net | 16,090 | 16,090 | ||||||||||||||||||||||||||
| Opearating lease assets | 22,011 | 22,011 | ||||||||||||||||||||||||||
| Other assets | 1,451 | 1,451 | ||||||||||||||||||||||||||
| Total assets | 306,634 | 236,790 | 1,840 | (154,627 | ) | 390,637 | ||||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||||||
| Accounts payable | 7,383 | 4,540 | (4,319 | ) | (d | ) | 221 | |||||||||||||||||||||
| (1,962 | ) | (d | ) | |||||||||||||||||||||||||
| (5,421 | ) | (j | ) | |||||||||||||||||||||||||
| Accrued liabilities | 2,982 | 1,305 | (915 | ) | (d | ) | 390 | |||||||||||||||||||||
| (1,112 | ) | (d | ) | |||||||||||||||||||||||||
| (1,870 | ) | (j | ) | |||||||||||||||||||||||||
| Convertible promissory note | 750 | (750 | ) | (i | ) | |||||||||||||||||||||||
| Derivative - Forward Purchase and Backstop Securities | 383 | (383 | ) | (f | ) | |||||||||||||||||||||||
| Current portion of contingent liabilities | 2,179 | 2,179 | ||||||||||||||||||||||||||
| Current portion of deferred revenue | 10,199 | 10,199 | ||||||||||||||||||||||||||
| Current portion of operating lease liabilities | 1,225 | 1,225 | ||||||||||||||||||||||||||
| Current portion of finance lease liabilities | 3 | 3 | ||||||||||||||||||||||||||
| Total current liabilities | 23,971 | 6,978 | (16,732 | ) | 14,217 | |||||||||||||||||||||||
| Long-term contingent liabilities | 4,323 | 4,323 | ||||||||||||||||||||||||||
| Deferred underwriting fee payable | 8,050 | (8,050 | ) | (c | ) | |||||||||||||||||||||||
| Deferred income taxes, net | 18,304 | 18,304 | ||||||||||||||||||||||||||
| Long-term operating lease liabilities | 25,411 | 25,411 | ||||||||||||||||||||||||||
| Long-term portion of deferred revenue | 7,384 | 7,384 | ||||||||||||||||||||||||||
| Other long-term liabilities | 298 | 298 | ||||||||||||||||||||||||||
| Total liabilities | 79,691 | 15,028 | (24,782 | ) | 69,937 | |||||||||||||||||||||||
| Commitments and contingencies | ||||||||||||||||||||||||||||
| Class A ordinary shares subject to possible redemption | 236,098 | (236,098 | ) | (g | ) | |||||||||||||||||||||||
| Stockholders equity | ||||||||||||||||||||||||||||
| Preference shares | ||||||||||||||||||||||||||||
| Ordinary shares | ||||||||||||||||||||||||||||
| Class A | 2 | (g | ) | |||||||||||||||||||||||||
| (2 | ) | (h | ) | |||||||||||||||||||||||||
| Class B | 1 | (1 | ) | (h | ) | |||||||||||||||||||||||
| Parent company net investment | 226,943 | 1,840 | (a | ) | (889 | ) | (j | ) | ||||||||||||||||||||
| (227,894 | ) | (k | ) | |||||||||||||||||||||||||
| OmniAb Common Stock | (e | ) | 12 | |||||||||||||||||||||||||
| 3 | (h | ) | ||||||||||||||||||||||||||
| 10 | (k | ) | ||||||||||||||||||||||||||
| (2 | ) | (m | ) | |||||||||||||||||||||||||
| 1 | (n | ) | ||||||||||||||||||||||||||
| Additional paid-in capital | 4,025 | (c | ) | 320,688 | ||||||||||||||||||||||||
| (8,095 | ) | (d | ) | |||||||||||||||||||||||||
| 236,096 | (g | ) | ||||||||||||||||||||||||||
| 15,000 | (e | ) | ||||||||||||||||||||||||||
| 383 | (f | ) | ||||||||||||||||||||||||||
| 227,884 | (k | ) | ||||||||||||||||||||||||||
| (17,286 | ) | (l | ) | |||||||||||||||||||||||||
| (224,047 | ) | (m | ) | |||||||||||||||||||||||||
| 86,728 | (n | ) | ||||||||||||||||||||||||||
| Accumulated deficit | (14,337 | ) | (2,949 | ) | (d | ) | ||||||||||||||||||||||
| 17,286 | (l | ) | ||||||||||||||||||||||||||
| Total stockholders equity | 226,943 | (14,336 | ) | 1,840 | 106,253 | 320,700 | ||||||||||||||||||||||
| Total liabilities and stockholders equity | $ | 306,634 | $ | 236,790 | $ | 1,840 | $ | (154,627 | ) | $ | 390,637 |
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF
OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2022
(in thousands, except share and per share data)
| Legacy OmniAb (Historical) | APAC (Historical) | Autonomous Entity Adjustments (Note 3) | Transaction Accounting Adjustments (Note 3) | Pro Forma Combined | ||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||
| Royalty | $ | 402 | $ | $ | 402 | |||||||||||||||||||
| License and milestone revenue | 6,426 | 6,426 | ||||||||||||||||||||||
| Service revenue | 9,994 | 9,994 | ||||||||||||||||||||||
| Total revenue | 16,822 | 16,822 | ||||||||||||||||||||||
| Operating expense: | ||||||||||||||||||||||||
| Research and development | 22,256 | 22,256 | ||||||||||||||||||||||
| General and administrative | 9,115 | 6,399 | (60 | ) | (aa | ) | 15,454 | |||||||||||||||||
| Amortization of intangibles | 6,518 | 6,518 | ||||||||||||||||||||||
| Other operating expense (income) - net | (278 | ) | (278 | ) | ||||||||||||||||||||
| Total operating expenses | 37,611 | 6,399 | (60 | ) | 43,950 | |||||||||||||||||||
| Loss from operations | (20,789 | ) | (6,399 | ) | 60 | (27,128 | ) | |||||||||||||||||
| Other income (expense): | ||||||||||||||||||||||||
| Gain on investments held in Trust Account | 348 | (348 | ) | (cc | ) | |||||||||||||||||||
| Change in fair value of Forward Purchase and Backstop Securities | 65 | (65 | ) | (dd | ) | |||||||||||||||||||
| Other income, net | 413 | (413 | ) | |||||||||||||||||||||
| Loss before income taxes | (20,789 | ) | (5,986 | ) | (353 | ) | (27,128 | ) | ||||||||||||||||
| Income tax benefit | 4,231 | 2,551 | (ee | ) | 6,782 | |||||||||||||||||||
| Net loss | $ | (16,558 | ) | $ | (5,986 | ) | $ | $ | 2,198 | $ | (20,346 | ) | ||||||||||||
| Deemed dividend - Forward Purchase and Backstop Securities | (225 | ) | 225 | (ff | ) | |||||||||||||||||||
| Net loss attributable to ordinary shareholders | $ | (16,558 | ) | $ | (6,211 | ) | $ | $ | 2,423 | $ | (20,346 | ) | ||||||||||||
| Basic and diluted weighted average shares outstanding | 28,750,000 | 69,777,560 | (gg | ) | 98,527,560 | |||||||||||||||||||
| Basic and diluted net loss per share | $ | (0.21 | ) | $ | (0.21 | ) |
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF
OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2021
(in thousands, except share and per share data)
| Year Ended December 31, 2021 Legacy | For the period from February 5, 2021 (inception) through December 31, 2021 | Autonomous Entity | Transaction Accounting | Year Ended December 31, 2021 | ||||||||||||||||||||
| OmniAb (Historical) | APAC (Historical) | Adjustments (Note 3) | Adjustments (Note 3) | Pro Forma Combined | ||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||
| License and milestone revenue | $ | 14,664 | $ | $ | 14,664 | |||||||||||||||||||
| Service revenue | 20,084 | 20,084 | ||||||||||||||||||||||
| Total revenue | 34,748 | 34,748 | ||||||||||||||||||||||
| Operating expense: | ||||||||||||||||||||||||
| Research and development | 39,232 | 39,232 | ||||||||||||||||||||||
| General and administrative | 16,947 | 516 | (46 | ) | (aa | ) | 17,417 | |||||||||||||||||
| Amortization of intangibles | 12,968 | 12,968 | ||||||||||||||||||||||
| Other operating expense - net | 1,210 | 1,210 | ||||||||||||||||||||||
| Total operating expenses | 70,357 | 516 | (46 | ) | 70,827 | |||||||||||||||||||
| Loss from operations | (35,609 | ) | (516 | ) | 46 | (36,079 | ) | |||||||||||||||||
| Other income (expense): | ||||||||||||||||||||||||
| Interest expense | (7 | ) | (7 | ) | ||||||||||||||||||||
| Other income (expense), net | 1,266 | (2,949 | ) | (bb | ) | (1,683 | ) | |||||||||||||||||
| Other income (expense), net | 1,259 | (2,949 | ) | (1,690 | ) | |||||||||||||||||||
| Loss before income taxes | (34,350 | ) | (516 | ) | (2,903 | ) | (37,769 | ) | ||||||||||||||||
| Income tax benefit | 7,308 | 2,134 | (ee | ) | 9,442 | |||||||||||||||||||
| Net loss | $ | (27,042 | ) | $ | (516 | ) | $ | $ | (769 | ) | $ | (28,327 | ) | |||||||||||
| Basic and diluted weighted average shares outstanding | 15,178,572 | 83,348,988 | (gg | ) | 98,527,560 | |||||||||||||||||||
| Basic and diluted net loss per share | $ | (0.03 | ) | $ | (0.29 | ) |
NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS
1. Basis of Presentation
Combination was accounted for as a reverse recapitalization in accordance with GAAP, whereby APAC was treated as the acquired company and Legacy OmniAb was treated as the acquirer. Accordingly, for accounting purposes, the Business Combination was
treated as the equivalent of Legacy OmniAb issuing stock for the net assets of APAC, accompanied by a recapitalization. The net assets of APAC were stated at historical cost, with no goodwill or other intangible assets recorded. Subsequently,
results of operations presented for the period prior to the Business Combination are those of Legacy OmniAb.
The unaudited pro forma
condensed combined balance sheet as of June 30, 2022 gives pro forma effect to the Business Combination as if it had been consummated on June 30, 2022. The unaudited pro forma condensed combined statements of operations for the six months
ended June 30, 2022 and year ended December 31, 2021 give pro forma effect to the Business Combination as if it had been consummated on January 1, 2021.
The unaudited pro forma condensed combined balance sheet as of June 30, 2022 has been prepared using, and should be read in conjunction
with, the following:
The unaudited pro forma condensed combined statement
of operations for the six months ended June 30, 2022 has been prepared using, and should be read in conjunction with, the following:
The unaudited pro forma
condensed combined statement of operations for the year ended December 31, 2021 has been prepared using, and should be read in conjunction with, the following:
Management has made significant estimates and assumptions in its determination of the pro forma adjustments. As the unaudited pro forma
condensed combined financial information has been prepared based on these preliminary estimates, the final amounts recorded may differ materially from the information presented.
The unaudited pro forma condensed combined financial information does not give effect to any synergies, operating efficiencies, tax savings or
cost savings that may be associated with the Business Combination.
The pro forma adjustments reflecting the completion of the Business
Combination are based on currently available information and assumptions and methodologies that management believes are reasonable under the circumstances. The unaudited condensed pro forma adjustments, which are described in the accompanying notes,
may be revised as additional information becomes available and is evaluated. Therefore, it is likely that the actual adjustments will differ from the pro forma adjustments and it is possible the difference may be
material. Management believes that its assumptions and methodologies provide a reasonable basis for presenting all of the significant effects of the Business Combination based on information
available to management at the current time and that the pro forma adjustments give appropriate effect to those assumptions and are properly applied in the unaudited pro forma condensed combined financial information.
The unaudited pro forma condensed combined financial information is not necessarily indicative of what the actual results of operations and
financial position would have been had the Business Combination taken place on the dates indicated, nor are they indicative of the future consolidated results of operations or financial position of the Company. They should be read in conjunction
with the historical financial statements and notes thereto of Legacy OmniAb and APAC.
2. Accounting Policies and Reclassifications
In connection with closing of the Business Combination, management performed a review of Legacy OmniAb s and APAC s accounting
policies and did not identify any differences that would have a material impact on the unaudited pro forma condensed combined financial information.
3. Adjustments to Unaudited Pro Forma Condensed Combined Financial Information
The following unaudited pro forma condensed combined financial information has been prepared in accordance with
Article 11 of Regulation S-X. The unaudited pro forma condensed combined financial information has been prepared to illustrate the effect of the Business Combination and has been prepared for
informational purposes only.
The pro forma combined provision for income taxes does not necessarily reflect the amounts that would have
resulted had the post-combination company filed consolidated income tax returns during the periods presented.
The pro forma basic and
diluted earnings per share amounts presented in the unaudited pro forma condensed combined consolidated statement of operations are based upon the number of the Company s shares outstanding, assuming the Business Combination occurred on
Autonomous Entity Adjustments to Unaudited Pro Forma Condensed Combined Balance Sheet
The autonomous entity adjustments included in the unaudited pro forma condensed combined balance sheet as of June 30, 2022 are as follows:
Transaction Accounting Adjustments to Unaudited Pro Forma Condensed Combined Balance
The transaction accounting adjustments included in the unaudited pro forma condensed combined balance sheet as of
June 30, 2022, are as follows:
For Legacy OmniAb s transaction costs:
For APAC s transaction costs:
Autonomous Entity Adjustments to Unaudited Pro Forma Condensed Combined Statements of Operations
Autonomous Entity Adjustments
unaudited pro forma condensed combined statements of operations for the six months ended June 30, 2022 and year ended December 31, 2021 do not reflect an amount for an autonomous entity adjustment as management does not anticipate that the
net costs derived from expected contractual arrangements, primarily related to the Transition Services Agreements and Employee Matters Agreement will be materially different than the historical costs for these same services that have been allocated
by Ligand to Legacy OmniAb in its historical combined financial statements for the six months ended June 30, 2022 and year ended December 31, 2021.
Management Adjustments for Incremental Costs
Legacy OmniAb expects to incur incremental costs based on management actions and other dis-synergies
that will result as a separate public company, which may be material to the Company s financial results. These incremental costs, which are additional to the net costs expected to be incurred under the Transition Services Agreement and other
contractual arrangements executed at closing, primarily include additional compensation expense from potential headcount increases, higher audit and tax fees, and other costs related to our IT, investor relations, finance and general and
administrative functions. As these costs are based on certain discretionary management actions for which contractual agreements are not yet known or will occur following closing of the transaction, they are not considered as autonomous entity
adjustments. Management has elected not to present Management s Adjustments related to these incremental costs in the unaudited pro forma condensed combined financial information.
Transaction Accounting Adjustments to Unaudited Pro Forma Condensed Combined Statements of Operations
The pro forma adjustments included in the unaudited pro forma condensed combined statements of operations for the six months ended
June 30, 2022 and year ended December 31, 2021 are as follows:
| Six Months | Year Ended | |||||||
| Ended June 30, | December 31, | |||||||
| 2022 | 2021 | |||||||
| Issuance of shares of OmniAb Common Stock to holders of Legacy OmniAb Common Stock | 82,611,789 | 82,611,789 | ||||||
| Impact on APAC s weighted average shares outstanding assuming APAC s shares were outstanding since January 1, 2021, the beginning of the earlier period presented | 13,571,428 | |||||||
| Issuance of shares of OmniAb Common Stock in the Forward Purchase and Redemption Backstop | 10,172,934 | 10,172,934 | ||||||
| Redemptions of APAC Class A Ordinary Shares | (21,713,864 | ) | (21,713,864 | ) | ||||
| Exclusion of Sponsor Earnout Shares (1) | (1,293,299 | ) | (1,293,299 | ) | ||||
| 69,777,560 | 83,348,988 |
Refer to Note 4 Loss Per Share of this Unaudited Pro Forma Condensed Combined Financial Information for further information on the