Axogen, Inc. Receives Full Deposit Protection Following SVB's Closure

Strategic Insights -

Axogen, Inc., a US-based medical device company, received full deposit protection after Silicon Valley Bank (SVB) was closed by the California Department of Financial Protection and Innovation on March 10, 2023. The Department of the Treasury, Federal Reserve, and Federal Deposit Insurance Corporation (FDIC) issued a joint press release announcing that all depositors would have access to their money, including Axogen's approximately $8 million cash deposit. Axogen has already made arrangements to transfer its cash and investments into new accounts with JP Morgan Chase.

Key Takeaways:

  • Axogen, Inc. has approximately $8 million of cash held at Silicon Valley Bank (SVB), which is fully protected following SVB's closure.
  • The FDIC has completed the resolution of SVB, and all depositors, including Axogen, will have access to their funds starting March 13, 2023.
  • Axogen has opened new brokerage accounts with JP Morgan Chase and is in the process of transferring its cash and investments from U.S. Bank into the new accounts.
  • The company's cash and cash equivalents and investments will be sufficient to meet its financial obligations, including payroll, customer, and supplier requirements, through at least the next 12 months.
  • Axogen's existing cash and investments, as well as cash provided by product sales, will support the company's operations and meet its financial needs for the foreseeable future.
  • The company is in the process of opening additional accounts with JP Morgan Chase to facilitate its operations.

Statistics:

  • $8 million: The amount of cash held by Axogen at Silicon Valley Bank (SVB) that is fully protected.
  • 13: The date on which Axogen's cash deposits at SVB became available following the FDIC's resolution of SVB.
  • $1 billion: The approximate Value of the US-based SVB at the time it was closed by authorities.

Sources:

  • Department of the Treasury, Federal Reserve, and Federal Deposit Insurance Corporation. (2023, March 12). Joint Press Release.
  • SEC Form 8-K: Axogen, Inc. (2023, March 10).