SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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|Item 1.01|| |
Entry into a Material Definitive Agreement.
On June 15, 2021, Solid Biosciences Inc. (the “Company”) entered into a lease (the “Lease”) with Hood Park LLC (the “Landlord”), pursuant to which the Company will lease approximately 49,869 square feet of office, laboratory, research and development and manufacturing space located at 500 Rutherford Avenue, Charlestown, Massachusetts 02129 (the “Premises”). Under the terms of the Lease, the Company also has a right of first offer to lease an additional 14,034 rentable square feet as it becomes available, subject to certain limitations. The Company and the Landlord are each obligated to undertake certain improvements to the Premises prior to the commencement of the Lease. The Landlord is required to use good faith and commercially reasonable efforts to deliver the Premises to Solid by September 3, 2021. The Company will make certain improvements to the Premises prior to commencement of the Lease, which will be partially paid for with the tenant improvement allowance discussed below.
The term of the Lease commences on the later of (i) the date the Landlord delivers the Premises to the Company with the Premises or (ii) the earlier of (a) the date the Company’s work on the Premises is substantially completed, (b) the date the Company commences business operations in the Premises, or (c) the one hundred twentieth (120th) day following the Landlord’s satisfaction of item (i) above (the “Lease Commencement Date”). The Lease Commencement Date is anticipated to be January 3, 2022. The date on which the Company will become responsible for paying rent under the Lease (the “Rent Commencement Date”) will be 61 days following the Lease Commencement Date.
The initial term of the Lease will be for a ten-year period commencing on the Commencement Date, unless earlier terminated. The Lease also provides the Company with an option to extend the Lease for an additional five-year term. The Company’s annual base rent for the Premises will start at approximately $3.7 million commencing on the Rent Commencement Date and will increase on each anniversary of the Rent Commencement Date by approximately 3.0% per annum, up to a maximum annual base rent of approximately $4.8 million. The Lease provides for a tenant improvement allowance of approximately $10.2 million, with an additional approximately $0.5 million available at the Company’s election which if used will be amortized over the term of the lease, to be used for such tenant improvements.
The Company is required to post a customary letter of credit in the amount of approximately $1.8 million, subject to decrease on a set schedule, as a security deposit pursuant to the Lease. The Company intends to relocate its corporate headquarters to the Premises in early 2022.
The foregoing description of the Lease is qualified in its entirety by reference to the complete text of the Lease, a copy of which will be filed as an exhibit to the Company’s Quarterly Report on Form 10-Q for the quarter ending June 30, 2021.
|Item 2.03|| |
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of Registrant.
The information set forth above in Item 1.01 of this Current Report on Form 8-K regarding the letter of credit is incorporated into this Item 2.03 by reference.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|SOLID BIOSCIENCES INC.|
|Date: June 16, 2021||By:|| |
/s/ Ilan Ganot
|Name: Ilan Ganot|
|Title: Chief Executive Officer|