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  "docSlug": "5fadb686cc03",
  "documentTitle": "Twist Bioscience (TWST)",
  "authorId": "58_Scorpion_Capital",
  "authorName": "Scorpion Capital",
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  "presentationDate": "2022-11-15 00:00:00",
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  "notes": "The slide uses a table from a 10K filing and a direct quote to expose a discrepancy in corporate messaging.",
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      "kind": "callout",
      "text": "Use stated as “DNA Data Storage facility,’ not manufacturing",
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      "text": "Twist explicitly states that the facility is for “DNA Data Storage,” not manufacturing, which it lists as the use case only for its South San Francisco HQ – contradicting numerous statements the CEO has made about its intended purpose.",
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      "text": "“In December 2020, we entered into a 12-year operating lease for an approximately 111,000-square foot facility in Wilsonville, Oregon [...] we expect monthly rent payments on the new facility to commence in the first quarter of 2022. We will pay an initial annual base rent of approximately $1.7 million [...] We have been provided a tenant improvement allowance of $13.3 million [...] The total future minimum lease payments under the agreement are $27.9 million. On April 13, 2021, we entered into the First Lease Amendment, which amends the terms of the Wilsonville, Oregon lease agreement dated December 18, 2020. The First Lease Amendment increases the premises originally leased within the same building by approximately 101,000 square feet [...] Additional rent under the First Lease Amendment for the additional premises commences April 1, 2022 with approximately $1.2 million in rent payments due the first year and approximately $17.6 million in aggregate estimated rent payments due over the total initial term of the First Lease Amendment [...] The landlord will provide a tenant improvement allowance in connection with our improvements to the additional premises of approximately $4.3 million.”",
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      "text": "We emphasize that Twist is leasing the Oregon facility for a negligible amount, and that the stratospheric capex is not to fund greenfield construction of a 212,000 square foot facility. The 10K indicates that the initial base rent is a mere $2.9MM/year, which appears to be offset by $17.6MM of tenant improvement allowances – so it appears that Twist is even being subsidized by the landlord. In addition, as we studied this section of the 10K, we realized that Twist explicitly states that the facility is for “DNA Data Storage,” not manufacturing, which it lists as the use case only for its South San Francisco HQ – contradicting numerous statements the CEO has made about its intended purpose.",
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      "text": "“In December 2020, we entered into a 12-year operating lease for an approximately 111,000-square foot facility in Wilsonville, Oregon [...] We will pay an initial annual base rent of approximately $1.7 million [...] We have been provided a tenant improvement allowance of $13.3 million [...] The landlord will provide a tenant improvement allowance in connection with our improvements to the additional premises of approximately $4.3 million.” — Twist 10K filed Nov 23, 2021",
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      "text": "Source: Twist 10K filed Nov 23, 2021",
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      "text": "Table of Principal Facilities showing location, square footage, lease expiration, use, and ownership status.",
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      "text": "“Factory of the Future” lease details from 2021 10K filing",
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