Illumina Completes Spin-off of Grail

Illumina, Inc. (NASDAQ: ILMN) has successfully completed the spin-off of Grail, enabling Grail to become a public and independent company. Post-spinoff, Grail will begin regular trading on NASDAQ under the ticker symbol "GRAL" from June 25. Illumina will continue trading on NASDAQ under the ticker symbol "ILMN" and retains a minority share of 14.5% in Grail.

In the second quarter of 2024, Illumina will issue its results on August 6 and present a strategy update on August 13. The company has also entered into a 364-day delayed draw credit agreement, providing for a senior unsecured term loan credit facility of up to $750 million, drawn in full on June 20 to fund the cash to the balance sheet of Grail in connection with the divestment.

The separation was achieved through the distribution of 85.5% of the outstanding shares of Grail to holders of Illumina common stock on June 24. Illumina shareholders received one share of Grail common stock for every six shares of Illumina stock held as of the record date of June 13. Illumina retained 14.5% of the outstanding shares of Grail common stock.

Following the spin-off, Grail will begin trading "regular way" on NASDAQ under the ticker symbol "GRAL." Fractional shares of Grail common stock were not distributed to Illumina shareholders and are instead being aggregated and sold in the open market, with the net proceeds to be distributed pro rata, in cash, to the shareholders who would otherwise have received a fractional share of Grail common stock.

Illumina shareholders are not expected to recognize a gain or loss for U.S. federal income tax purposes as a result of the distribution of Grail shares, except with respect to cash received in lieu of fractional shares, and are advised to consult with their tax advisors for the tax consequences of the spin-off.

The upcoming strategy update is expected to outline Illumina's plan to accelerate topline growth, achieve operational excellence, deliver for customers, and maximize value for shareholders, with a focus on strengthening the business and catalyzing innovation in next-generation sequencing.

The completion of the spin-off marks a significant milestone for Illumina, as it looks to focus on its core business and drive value for shareholders in the evolving genomics industry. The market has reacted to these announcements by moving the company's shares 1.5% to a price of $110.24. Check out the company's full 8-K submission here.

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