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  "documentTitle": "Twist Bioscience (TWST)",
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  "presentationDate": "2022-11-15 00:00:00",
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  "notes": "The slide uses a direct quote from the S-1 filing to contrast the company's disclosure with the activist's interpretation of potential regulatory risk.",
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      "text": "Twist S-1 filing, Oct 29 2018\nSide Letter with Ever Alpha Fund. L.P.\nIn March 2018, in connection with Ever Alpha Fund L.P. and certain other investors’ purchase of Series D convertible preferred stock, we entered into a side letter with Ever Alpha Fund L.P. and certain other parties pursuant to which, among other things, we have committed to using commercially reasonable efforts to invest up to $5.0 million, $10.0 million and $10.0 million over a three year period in connection with the incorporation, business and/or operations of a wholly owned foreign enterprise in the PRC, subject to and contingent upon the approval of our board of directors and any applicable regulatory agencies in the PRC and U.S., and compliance with any applicable laws and regulations. The foreign enterprise will be exclusively owned and controlled by us through a subsidiary that we will wholly own, and Ever Alpha Fund L.P. will not have any direct economic, voting or other interests in this enterprise or any of our subsidiaries. Ever Alpha Fund L.P.’s interests in this enterprise are limited to its equity interest as a stockholder in the Company and its belief that expanding our manufacturing capacity and growing our sales organization in China will have a positive impact on our business and long-term value.",
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      "text": "As we read the prospectus filed on Oct 29, 2018, we were struck by an opaque disclosure about a “Side Letter” with Ever Alpha and “certain other parties.” Side letters are unusual, and we wondered why this side letter committed Twist to investing $25MM over three years into an entity in China. We further wondered who the “certain other parties” were, and why they were not disclosed. A transaction with a offshore Chinese entity that invests $70MM with $25MM round-tripped back raises obvious concerns relating to the Foreign Corrupt Practices Act.",
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      "text": "Source: Twist S-1 filed Oct 29, 2018",
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