Ginkgo Bioworks Holdings Inc

Current report

As previously announced on May 9, 2024, in connection with the Company’s multi-year plan to reduce operational expenditures, management approved a plan for restructuring actions, including a reduction in labor expenses and a planned consolidation of certain of its facilities. Initial workforce reductions commenced in June 2024, with further reductions expected in the second half of 2024. All reductions are expected to be substantially completed in 2025, subject to compliance with applicable laws. The Company plans to consolidate certain facilities through various actions, including the consolidation of office and laboratory operations into fewer locations, subleasing unused facilities, and other related measures. While the Company aims to complete the majority of its facility consolidation actions in 2025, the actual timing may vary. The Company currently estimates the costs for the reduction in force to range from $18.0 million to $22.0 million primarily in the Cell Engineering segment and consist of one-time cash severance and related costs.

Current report

If we fail to meet the continued listing standards of the NYSE, it could result in a delisting of our Class A shares.

Current report

On May 7, 2024, we received a notice from the NYSE that, because the average closing price for our Class A common stock has fallen below $1.00 per share for 30 consecutive trading days, we no longer comply with the price criteria for continued listing on the NYSE. The NYSE continued listing criteria provide us with a compliance period of six months in which to regain compliance. We have taken steps to regain compliance, but if we fail to satisfy the continued listing standards of the NYSE within the six-month cure period by achieving a minimum closing stock price of $1.00 per share of our Class A common stock for 30 consecutive trading days, the NYSE may take steps to delist our Class A common stock. Such a delisting would most likely have a negative effect on the price of our Class A common stock and would impair stockholders’ ability to sell or purchase shares of our Class A common stock when they wish to do so. In the event of a delisting, we would attempt to take actions to restore our compliance with the NYSE’s listing requirements, but we can provide no assurance that any such action taken by us would allow our Class A common stock to become listed again, stabilize the market price, improve the liquidity of our Class A common stock, prevent our Class A common stock price from dropping below the NYSE minimum average closing price requirement or prevent future non-compliance with the NYSE’s listing requirements.

Previous report

On May 9, 2024, in connection with the Company’s plans to reduce operational expenditures, management approved a plan for restructuring actions, including an expected reduction in labor expenses of at least 25% and a planned consolidation of certain of its facilities. Initial headcount reductions are expected to commence in the second quarter of 2024 and be substantially completed in 2025, subject to local laws. The aggregate expected costs and overall timing for completion of the restructuring plan is not yet known, and could result in total costs and expenses that are greater than expected and could disrupt our business.