0001104659-23-046353.txt : 20230417 0001104659-23-046353.hdr.sgml : 20230417 20230417213024 ACCESSION NUMBER: 0001104659-23-046353 CONFORMED SUBMISSION TYPE: 4 PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20230413 FILED AS OF DATE: 20230417 DATE AS OF CHANGE: 20230417 REPORTING-OWNER: OWNER DATA: COMPANY CONFORMED NAME: Redmile Group, LLC CENTRAL INDEX KEY: 0001425738 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 4 SEC ACT: 1934 Act SEC FILE NUMBER: 001-36076 FILM NUMBER: 23825328 BUSINESS ADDRESS: STREET 1: ONE LETTERMAN DRIVE STREET 2: BUILDING D, SUITE D3-300 CITY: SAN FRANCISCO STATE: CA ZIP: 94129 BUSINESS PHONE: 415-489-9980 MAIL ADDRESS: STREET 1: ONE LETTERMAN DRIVE STREET 2: BUILDING D, SUITE D3-300 CITY: SAN FRANCISCO STATE: CA ZIP: 94129 REPORTING-OWNER: OWNER DATA: COMPANY CONFORMED NAME: Green Jeremy CENTRAL INDEX KEY: 0001650527 FILING VALUES: FORM TYPE: 4 SEC ACT: 1934 Act SEC FILE NUMBER: 001-36076 FILM NUMBER: 23825327 MAIL ADDRESS: STREET 1: 45 W. 27TH STREET, FLOOR 11 CITY: NEW YORK STATE: NY ZIP: 10001 ISSUER: COMPANY DATA: COMPANY CONFORMED NAME: FATE THERAPEUTICS INC CENTRAL INDEX KEY: 0001434316 STANDARD INDUSTRIAL CLASSIFICATION: BIOLOGICAL PRODUCTS (NO DIAGNOSTIC SUBSTANCES) [2836] IRS NUMBER: 651311552 FISCAL YEAR END: 1231 BUSINESS ADDRESS: STREET 1: 12278 SCRIPPS SUMMIT DRIVE CITY: SAN DIEGO STATE: CA ZIP: 92131 BUSINESS PHONE: 858.875.1803 MAIL ADDRESS: STREET 1: 12278 SCRIPPS SUMMIT DRIVE CITY: SAN DIEGO STATE: CA ZIP: 92131 4 1 tm2313044-1_4seq1.xml OWNERSHIP DOCUMENT X0407 4 2023-04-13 0 0001434316 FATE THERAPEUTICS INC FATE 0001425738 Redmile Group, LLC ONE LETTERMAN DRIVE, BUILDING D SUITE D3-300 SAN FRANCISCO CA 94129 1 0 1 0 0001650527 Green Jeremy C/O REDMILE GROUP, LLC (NY OFFICE) 45 W. 27TH STREET, FLOOR 11 NEW YORK NY 10001 1 0 1 0 0 Common Stock 2023-04-13 4 C 0 167205 A 13135758 I See Footnote Common Stock 2023-04-14 4 S 0 302339 5.84 D 12833419 I See Footnote Common Stock 2023-04-14 4 J 0 5492385 5.84 D 12833419 I See Footnote Common Stock 2023-04-14 4 J 0 5492385 5.84 A 12833419 I See Footnote Common Stock 2023-04-14 4 P 0 25700 6.00 A 12859119 I See Footnote Class A Convertible Preferred Stock 2023-04-13 4 C 0 33441 D Common Stock 167205 2761108 I See Footnote Class A Convertible Preferred Stock 2023-04-14 4 J 0 45752 29.20 D Common Stock 228760 2761108 I See Footnote Class A Convertible Preferred Stock 2023-04-14 4 J 0 45752 29.20 A Common Stock 228760 2761108 I See Footnote Pre-Funded Warrants to Purchase Common Stock 0.001 2023-04-14 4 J 0 54960 5.839 D Common Stock 54960 257310 I See Footnote Pre-Funded Warrants to Purchase Common Stock 0.001 2023-04-14 4 J 0 54960 5.839 A Common Stock 54960 257310 I See Footnote Cash-settled Swaps 3.02 2023-04-14 4 J 0 550000 5.84 D Common Stock 550000 559100 I See Footnote Cash-settled Swaps 3.02 2023-04-14 4 J 0 550000 5.84 A Common Stock 550000 559100 I See Footnote On April 13, 2023, a private investment vehicle managed by Redmile Group, LLC ("Redmile") exercised its conversion right with respect to the non-voting Class A Convertible Preferred Stock of the Issuer (the "Class A Preferred Stock") held directly by such private investment vehicle. The Class A Preferred Stock is convertible into the Issuer's common stock, $0.001 par value per share (the "Common Stock"), in accordance with the terms of Issuer's Amended and Restated Certificate of Incorporation and the Issuer's Certificate of Designation of Preferences, Rights and Limitations of Class A Convertible Preferred Stock (as amended and restated, the "Certificate of Designation") at any time and from time to time at the holder's election based on a conversion ratio equal to the Class A Preferred Stock's stated value of $13.30 divided by its conversion price of $2.66. The one-for-five conversion rate is taken into account in the amount of underlying Common Stock involved in the cross trade listed under Column 7 of Table II and used to determine the price of the Class A Preferred Stock in connection with the cross trade listed under Column 8 of Table II (which is equal to five times the price per share of the Common Stock underlying the Class A Preferred Stock at the time of the cross trade). The Certificate of Designation provides that the holder may not convert any shares of Class A Preferred Stock if, after giving effect to the attempted conversion, the holder and its affiliates would beneficially own in the aggregate more than 14.99% of the number of shares of Common Stock outstanding after giving effect to such attempted conversion, which percentage may be changed at a holder's election upon 61 days' notice to the Issuer. The Class A Preferred Stock has no expiration date. On April 14, 2023, certain private investment vehicles and separate accounts managed by Redmile (the "Redmile Affiliates") engaged in cross trades with respect to their Common Stock, Class A Preferred Stock, pre-funded warrants to purchase Common Stock (the "Pre-Funded Warrants") and cash-settled swap agreements. The reported transactions occurred simultaneously at the market open, at which time the price per share of the Common Stock was $5.84, and therefore the reported transactions resulted in no profit to Redmile or Jeremy Green and resulted in no change in either of their aggregate beneficial ownership. The Pre-Funded Warrants are exercisable by the holder at any time until fully exercised at an exercise price per share of $0.001, subject to a limitation on the right of the Issuer to issue the Pre-Funded Warrant Shares if and the extent that such exercise would cause the holder and its affiliates to beneficially own in the aggregate more than 9.99% of the combined voting power of all of the securities of the Issuer outstanding after giving effect to such attempted conversion, which percentage may be changed at a holder's election upon 61 days' notice to the Issuer. The Pre-Funded Warrants have no expiration date. Certain Redmile Affiliates are parties to swap agreements with counterparties. Each notional share subject to each swap agreement represents the economic equivalent of one share of Common Stock. These agreements do not give the Reporting Persons direct or indirect voting, investment or dispositive control over any securities of the Issuer and do not require the counterparties thereto to acquire, hold, vote or dispose of any securities of the Issuer. The Redmile Affiliates that are parties to the swap agreements have the right to terminate and close out each swap at any time. Upon settlement of the swap agreements, either (i) the counterparty will pay to the Redmile Affiliates in cash an amount determined in part by reference to any increase between the reference price and the market value of the notional number of shares of Common Stock subject to the swap agreement or (ii) the Redmile Affiliates will pay to the counterparty in cash an amount determined in part by reference to any decrease between the reference price and the market value of the notional number of shares of Common Stock subject to the swap agreement. Represents the reference price associated with the cash-settled swap agreements. The securities reported herein are directly owned by the Redmile Affiliates, none of which individually is a 10% owner. The reported securities may be deemed beneficially owned by Redmile as investment manager of the Redmile Affiliates and by Jeremy Green as the managing principal of Redmile. Each of Redmile and Mr. Green (the "Reporting Persons") disclaims beneficial ownership of the reported securities except to the extent of their pecuniary interest therein. This report shall not be deemed an admission that the Reporting Persons are a beneficial owners of such securities for purposes of Section 16 of the Securities Exchange Act of 1934, as amended, or for any other purpose. The price reported in Column 4 is a weighted average price. These shares were purchased in multiple transactions at prices ranging from $5.995 to $6.0189, inclusive. The Reporting Person undertakes to provide upon request by the staff of the Securities and Exchange Commission, the Issuer or a security holder of the Issuer full information regarding the number of shares purchased at each separate price. Mr. Michael Lee, a member of the board of directors of the Issuer and a managing director of Redmile, was elected to the board of the Issuer as a representative of Redmile. As a result, the Reporting Persons are directors by deputization for purposes of Section 16 of the Securities Exchange Act of 1934, as amended. By: /s/ Jeremy Green, Managing Member of Redmile Group, LLC 2023-04-17 /s/ Jeremy Green 2023-04-17