If I am reading this correctly, they are now cutting back from 24,562 square feet in the February 2019 lease agreement to this new one of 8,727 square feet. Just 4 months ago, they went from 59,000' to the 24,000' space. I get cutting expenses, but do they really have enough space to get anything done?
Entry into a Material Definitive Agreement.
On June 19, 2019, Regulus Therapeutics Inc. (the “Company”) entered into a lease agreement (the “Lease”) with ARE-SD Region No. 44 LLC (“Landlord”) for the lease of approximately 8,727 square feet of rentable area of the building located at 10628 Science Center Drive, Suite 225, San Diego, California 92121 (the “Premises”). The commencement date of the Lease is expected to be on or before July 1, 2019 (the “Commencement Date”). The Company expects to use the Premises as its new principal executive offices and as a laboratory for research and development, manufacturing, and other related uses. The term of the Lease (the “Initial Term”) is two years six months, ending December 31, 2021 (assuming a July 1, 2019 Commencement Date). The aggregate base rent due over the Initial Term under the terms of the Lease is approximately $1.1 million (without giving effect to certain rent abatement terms). The Company will also be responsible for the payment of additional rent to cover the Company’s share of the annual operating expenses of the building, the annual tax expenses of the building and the annual utilities costs for the building. In the event of a default of certain of the Company’s obligations under the Lease, Landlord would have right to terminate the Lease and recover damages as provided by the lease contract and by law.
The foregoing description of the Lease is qualified in its entirety by reference to the Lease, a copy of which will be filed as an exhibit to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2019.
Termination of a Material Definitive Agreement.
On June 19, 2019, the Company and Landlord entered into a first amendment (the “Lease Amendment”) to the lease dated February 25, 2019, between the Company and Landlord (the “Prior Lease”) for the lease of approximately 24,562 square feet located at 10628 Science Center Drive, Suite 100, San Diego, California 92121. Under the terms of the Lease Amendment, the expiration date of the Prior Lease will be accelerated from June 30, 2023 to July 1, 2019 and the Prior Lease will terminate upon the Commencement Date of the Lease. The Lease Amendment will eliminate all further rents due under the Prior Lease, including aggregate base rent over its remaining term of approximately $4.8 million.
The foregoing description of the Lease Amendment is qualified in its entirety by reference to the Lease Amendment, a copy of which will be filed as an exhibit to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2019.