UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. )*
Nkarta, Inc.
(Name of Issuer)
Common Stock, par value $0.0001 per share
(Title of Class of Securities)
65487U 108
(CUSIP Number)
Peter Haahr
Novo Holdings A/S
Tuborg Havnevej 19
Hellerup, Denmark DK-2900
+45 3527 6592
Copy to:
B. Shayne Kennedy, Esq.
Latham & Watkins LLP
650 Town Center Drive, 20th Floor
Costa Mesa, CA 92626
Telephone: (714) 540-1235
(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)
July 14, 2020
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report the acquisition which is subject of this Schedule 13D, and is filing this statement because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following box. ☐
Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Rule 13d-7(b) for other parties to whom copies are to be sent.
| * | The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page. |
The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (the “Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).
| CUSIP No.: 65487U 108 | ||
| 1. | Name of Reporting Person:
Novo Holdings A/S | |||||
| 2. | Check the Appropriate Box if a Member of Group (See Instructions): (a) ☐ (b) ☐
| |||||
| 3. | SEC Use Only:
| |||||
| 4. | Source of Funds:
WC | |||||
| 5. | Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e):
☐ | |||||
| 6. | Citizenship or Place of Organization:
Denmark | |||||
Number of Shares Beneficially Owned By Each Reporting Person With:
| 7. | Sole Voting Power:
2,793,865 | ||||
| 8. | Shared Voting Power:
0 | |||||
| 9. | Sole Dispositive Power:
2,793,865 | |||||
| 10. | Shared Dispositive Power:
0 | |||||
| 11. | Aggregate Amount Beneficially Owned by Each Reporting Person:
2,793,865 | |||||
| 12. | Check if the Aggregate Amount in Row (11) Excludes Certain Shares:
☐ | |||||
| 13. | Percent of Class Represented By Amount In Row (11):
8.59%(1) | |||||
| 14. | Type of Reporting Person:
CO | |||||
| (1) | Based upon 32,527,537 shares of the Issuer’s Common Stock outstanding after the Issuer’s initial public offering (the “IPO”), as reported in the Issuer’s prospectus (Form 424B4) filed with the Securities and Exchange Commission (“SEC”) on July 13, 2020, which includes the exercise of the underwriters’ over-allotment option in connection with the IPO, as reported in the Issuer’s Form 8-K filed with the SEC on July 14, 2020. |
2
Item 1. Security and Issuer
This Schedule 13D relates to the common stock, par value $0.0001 per share (the “Common Stock”), of Nkarta, Inc., a Delaware corporation (the “Issuer”). The Issuer’s principal executive office is located at 6000 Shoreline Court, Suite 102, South San Francisco, California 94080.
Item 2. Identity and Background
| (a) | Novo Holdings A/S is a Danish limited liability company that is wholly owned by Novo Nordisk Fonden (the “Foundation”), a Danish commercial foundation. Novo Holdings A/S is the holding company in the group of Novo companies (currently comprised of Novo Nordisk A/S and Novozymes A/S) and is responsible for managing the Foundation’s assets, including its financial assets. Based on the governance structure of Novo Holdings A/S and the Foundation, the Foundation is not deemed to have any beneficial ownership of the securities of the Issuer held by Novo Holdings A/S. Tiba Aynechi, Ph.D. is employed as a senior partner at Novo Ventures (US), Inc. and was designated to the board of directors of the Issuer by Novo Holdings A/S in October 2015. Dr. Aynechi is not deemed to be a beneficial owner of the securities held by Novo Holdings A/S. |
The name of each director and executive officer of both Novo Holdings A/S and the Foundation is set forth on Schedule I to this Schedule 13D.
| (b) | The business address of both Novo Holdings A/S and the Foundation is Tuborg Havnevej 19, 2900 Hellerup, Denmark. |
The residence or business address of each director and executive officer of both Novo Holdings A/S and the Foundation is set forth on Schedule I to this Schedule 13D.
| (c) | Novo Holdings A/S, a holding company that is responsible for managing the Foundation’s assets, provides seed and venture capital to development stage companies and invests in well-established companies within the life science and biotechnology sector. |
The Foundation is a Danish self-governing and profit-making foundation, whose objectives are to provide a stable basis for commercial and research activities undertaken by the group of Novo companies and to support scientific, humanitarian and social purposes through grants.
| (d) | Within the last five years, neither Novo Holdings A/S, the Foundation, nor any person named in Schedule I has been convicted in any criminal proceedings. |
| (e) | Within the last five years, neither Novo Holdings A/S, the Foundation, nor any person named in Schedule I was a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws. |
Item 3. Source and Amount of Funds or Other Consideration
Prior to the Issuer’s IPO, Novo Holdings A/S held the following securities of the Issuer:
| (i) | In December 2017, Novo Holdings A/S acquired 1,944,348 shares of Series A convertible preferred stock of the Issuer upon the dissolution of Battersea Biotech, LLC. Upon its dissolution, Battersea Biotech, LLC distributed its shares to several investors including Novo Holdings A/S. |
| (ii) | In August 2019, Novo Holdings A/S purchased 1,914,785 shares of Series B convertible preferred stock of the Issuer for $2.37935 per share and an aggregate purchase price of approximately $4.6 million. The purchase price for these shares was paid by Novo Holdings A/S from its working capital. |
3
| (iii) | In August 2019, Novo Holdings A/S acquired 873,727 shares of Series B convertible preferred stock of the Issuer upon conversion of an aggregate principal amount of $2.0 million in convertible notes purchased by Novo Holdings A/S from the Issuer in May 2019. The notes had a conversion price of $2.37935 per share. The purchase price for these Convertible Notes was paid by Novo Holdings A/S from its working capital. |
| (iv) | In July 2020, Novo Holdings A/S purchased 3,548,891 shares of Series B convertible preferred stock of the Issuer for $2.37935 per share and an aggregate purchase price of approximately $8.4 million. The purchase price for these shares was paid by Novo Holdings A/S from its working capital. |
| (v) | On July 1, 2020, the Issuer effected a 1-for-3.7 reverse stock split. Following this reverse stock split, Novo Holdings A/S held a total of 2,238,310 shares of convertible preferred stock, comprised of 525,499 shares of Series A convertible preferred stock and 1,712,811 shares of Series B convertible preferred stock. Each share of convertible preferred stock converts automatically into one share of Common Stock upon the completion of the Issuer’s IPO. |
On July 14, 2020, the closing date of the IPO:
| (i) | Novo Holdings A/S acquired an aggregate of 2,238,310 shares of Common Stock upon the automatic conversion of the convertible preferred stock that occurred automatically upon the closing of the IPO; and |
| (ii) | Novo Holdings A/S purchased 555,555 shares of Common Stock from the underwriters (the “IPO Shares”) at $18.00 per share for an aggregate purchase price of $9.9 million pursuant to the provisions of the Underwriting Agreement among the Issuer and the several underwriters for the IPO. The purchase price of the IPO Shares was paid by Novo Holdings A/S from its working capital. |
| (iii) | Following these purchases in the IPO, Novo Holdings A/S held a total of 2,793,865 shares of Common Stock. |
Item 4. Purpose of Transaction
The acquisitions of Issuer securities made by Novo Holdings A/S, as described in this Schedule 13D, were for investment purposes. Novo Holdings A/S intends to review its investments in the Issuer on a continuing basis and any actions Novo Holdings A/S might undertake will be dependent upon its review of numerous factors from time to time, including, but not limited to: an ongoing evaluation of the Issuer’s business, financial condition, operations and prospects; price levels of the Issuer’s securities; general market, industry and economic conditions; the relative attractiveness of alternative business and investment opportunities; and other future developments. Novo Holdings A/S may, at any time and from time to time, acquire additional securities of the Issuer, or retain or sell all or a portion of the securities of the Issuer then held, in the open market or in privately negotiated transactions. Tiba Aynechi, Ph.D. is employed as a senior partner at Novo Ventures (US), Inc. and was designated to the board of directors of the Issuer by Novo Holdings A/S in October 2015. Dr. Aynechi is not deemed to be a beneficial owner of the securities held by Novo Holdings A/S. Dr. Aynechi may engage in communications with the Issuer’s other directors and members of management, and stockholders and third parties regarding the corporate governance, business, operations, strategy or future plans (including proposed corporate transactions of a significant nature) of the Issuer, including any plans or proposals regarding the same. Other than as described herein, Novo Holdings A/S currently does not have any plans or proposals that relate to, or would result in, any of the matters listed in Items 4(a)–(j) of Schedule 13D, although, depending on the factors discussed herein, Novo Holdings A/S may review or reconsider or change its purpose or formulate different plans, strategies, or proposals with respect thereto at any time.
Item 5. Interest in Securities of the Issuer
(a) Novo Holdings A/S beneficially owns 2,793,865 shares of Common Stock (the “Novo Shares”) representing approximately 8.59% of the Issuer’s outstanding shares of Common Stock, based upon 32,527,537 shares of the Issuer’s Common Stock outstanding after the Issuer’s IPO), including the exercise of the underwriters’ over-allotment option in connection with the IPO, as reported in the Issuer’s prospectus (Form 424B4) filed with the SEC on July 13, 2020, which includes the exercise of the underwriters’ over-allotment option in connection with the IPO, as reported in the Issuer’s Form 8-K filed with the SEC on July 14, 2020.
4
(b) Novo Holdings A/S is a Danish limited liability company wholly owned by the Novo Nordisk Foundation. Novo Holdings A/S, through its Board of Directors (the “Novo Board”), has the sole power to vote and dispose of the Novo Shares. The Novo Board may exercise voting and dispositive control over the Novo Shares with approval by a majority of the Novo Board. As such, no individual member of the Novo Board is deemed to hold any beneficial ownership or reportable pecuniary interest in the Novo Shares. Except as described above regarding the Novo Board, neither the Foundation nor any person listed on Schedule I has the power to direct the vote as to, or the disposition of, the Novo Shares.
(c) Except as described herein, Novo Holdings A/S has not effected any transactions in the Issuer’s Common Stock within the past 60 days and neither the Foundation nor any person listed on Schedule I has effected any transactions in the Issuer’s Common Stock within the past 60 days.
(d) Novo Holdings A/S does not know of any other person having the right to receive or the power to direct the receipt of dividends from, or the proceeds from the sale of, the Novo Shares.
(e) Not applicable.
Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer
Pursuant to the terms of an Investors’ Rights Agreement with the Issuer dated August 27, 2019, certain holders of the Issuer’s common stock, including Novo Holdings A/S, are entitled to rights with respect to the registration of their shares of Common Stock (the “registerable securities”) under the Securities Act of 1933, as amended. Beginning 180 days after the completion of the IPO, the holders of a majority of the then-outstanding registrable securities have demand rights to request the registration on Form S-1 of their registrable securities, provided the anticipated aggregate offering price, net of selling expenses, would exceed $5.0 million. In addition, the holders of a majority of the then-outstanding registrable securities can request that the Issuer register all or part of their shares on Form S-3 if the Issuer is eligible to file a registration statement on Form S-3 and if the aggregate price to the public of the shares offered, net of selling expenses, is at least $1.0 million. The stockholders may only require two registration statements on Form S-3 in a 12-month period. If the Issuer registers any of its securities for public sale, holders of then-outstanding registrable securities or their permitted transferees will have the right to include their registrable securities in such registration statement, subject to certain exclusions. All of these registration rights will expire, with respect to any particular holder, on the earliest to occur of (a) five years following the completion of the Issuer’s IPO, (b) at such time that all of the holder’s registrable securities can be sold without limitation in any ninety-day period without registration in compliance with Rule 144 or a similar exemption or (c) the closing of a deemed liquidation event, as defined in the Issuer’s certificate of incorporation.
In addition, the Issuer, its directors and officers, and the holders of substantially of its outstanding securities, including Novo Holdings A/S, entered into lock-up agreements, pursuant to which they agreed with the underwriters that, for a period of 180 days following the date of the prospectus in connection with the IPO, subject to certain exceptions, they will not, directly or indirectly, offer, sell, contract to sell, pledge, grant any option to purchase, make any short sale or otherwise dispose of or hedge any of the Issuer’s shares of Common Stock, or any options or warrants to purchase any shares of its Common Stock, or any securities convertible into, or exchangeable for or that represent the right to receive shares of its Common Stock.
The descriptions of the Investors’ Rights Agreement and the Lock-Up Agreement in this Item 6 of the Schedule 13D are summaries only and are qualified in their entireties by the actual terms of each such agreement, which are incorporated herein by reference. See Item 7 “Material to be Filed as Exhibits.”
Item 7. Material to be Filed as Exhibits
Amended and Restated Investors’ Rights Agreement, dated as of August 27, 2019 (incorporated by reference to Exhibit 4.2 to the Issuer’s Registration Statement on Form S-1 filed with the SEC on June 19, 2020).
| Exhibit 99.1 | Form of Lock-Up Agreement, dated as of February 28, 2020 between Novo Holdings A/S and the Underwriters. |
5
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.
| Dated: July 16, 2020 | Novo Holdings A/S | |||||
/s/ Peter Haahr | ||||||
| By: | Peter Haahr | |||||
| Its: | Chief Financial Officer | |||||
Schedule I
Information regarding each director and executive officer of both Novo Holdings A/S and the Novo Nordisk Foundation is set forth below.
| Novo Holdings A/S | ||||||
Name, Title | Address | Principal Occupation | Citizenship | |||
Lars Rebien Sørensen, Chairman of the Board | Christianholms Tværvej 27, 2930 Klampenborg Denmark | Professional Board Director | Denmark | |||
Steen Riisgaard, Vice Chairman of the Board | Hestetangsvej 155, 3520 Farum, Denmark | Professional Board Director | Denmark | |||
Jean-Luc Butel, Director | 235 Arcadia Road, #03-04, 28984 Singapore | Global Healthcare Advisor, President, K8 Global Pte Ltd. | Singapore | |||
Jeppe Christiansen, Director | Løngangstræde 21 A, 5., 1468 København K , Denmark | Chief Executive Officer, Fondsmaeglerselskabet Maj Invest A/S | Denmark | |||
Francis Michael Cyprian Cuss, Director | 111 Rippling Brook Way, Bernardsville, NJ 07924 USA | Former Executive Vice President and Chief Scientific Officer of Bristol-Myers Squibb | United Kingdom | |||
Viviane Monges, Director | Chemin de Craivavers 32, 1012 Lausanne, Switzerland | Professional Board Director | France | |||
Poul Carsten Stendevad, Director | 3220 Idaho Ave NW Washington, DC 20016 USA | Senior Fellow, Bridgewater Associates | Denmark | |||
Kasim Kutay, Chief Executive Officer of Holdings A/S | Bredgade 63, 3.tv. 1260 København K Denmark | Chief Executive Officer of Novo Holdings A/S | United Kingdom | |||
Peter Haahr, Chief Financial Officer of Novo Holdings A/S | Ordrup Have 21 2900 Charlottenlund Denmark | Chief Financial Officer of Novo Holdings A/S | Denmark | |||
| Novo Nordisk Foundation | ||||||
Name, Title | Address | Principal Occupation | Citizenship | |||
Lars Rebien Sørensen, Chairman of the Board | Christianholms Tværvej 27 2930 Klampenborg Denmark | Professional Board Director | Denmark | |||
Marianne Philip, Vice Chairman of the Board | Annasvej 28 2900 Hellerup Denmark | Attorney | Denmark | |||
Steen Riisgaard, Director | Hestetangsvej 155 3520 Farum Denmark | Professional Board Director | Denmark | |||
| Novo Nordisk Foundation | ||||||
Name, Title | Address | Principal Occupation | Citizenship | |||
Birgitte Nauntofte, Chief Executive Officer | Engbakkevej 24 2920 Charlottenlund Denmark | Chief Executive Officer, Novo Nordisk Foundation | Denmark | |||
Niels Peder Nielsen, Deputy CEO | Winthersvej 10, 3480 Fredensborg Denmark | Deputy CEO, Novo Nordisk Foundation | Denmark | |||
Anne Marie Kverneland, Director | Nybrovej 216 2800 Kgs. Lyngby Denmark | Laboratory technician, Novo Nordisk A/S | Denmark | |||
Lars Bo Køppler, Director | Anemonevej 7 3550 Slangerup Denmark | Technician, Novozymes A/S | Denmark | |||
Lars Fugger, Director | 72 Staunton Road, Headington OX3 7TP Great Britain | Professor, John Radcliffe Hospital, University of Oxford, Oxford, Great Britain | Denmark | |||
Lars Henrik Munch, Director | Galionsvej 46 1437 København K Denmark | Professional Board Director | Denmark | |||
Mads Boritz Grøn, Director | Horsevænget 4 3400 Hillerød Denmark | Senior Lead Auditor | Denmark | |||
Liselotte Højgaard, Director | Grønningen 21 1270 København K Denmark | Professor | Denmark | |||