Marrone Bio Innovations — An IPO for a Portfolio Company

Marrone Bioinnovations -- make natural, effective, safe, environmentally friendly products the mainstream future of pest managementToday Marrone Bio Innovations (Symbol: MBII) of Davis had their initial public offering on the NASDAQ stock exchange. It was priced at $12/share and ended the day at $13.75.

SacAngel members first invested in the company in 2006 as part of MBI’s first round of funding (Series A). It is estimated from the company S-1/A filing with the SEC that those investors had a return in the range of 6.4x based on the closing price today (i.e., for every dollar invested, their return today, if they sold their stock, would be $6.4). Similarly, those that invested in subsequent Series B (2008) and Series C (2010-11)  financing rounds got returns of 3.9x and 3.6x, respectively.

However, early investors are usually prohibited from selling their stock until some time after the IPO — often 180 days (the “lockup” period). So the actual return for our members, should they want to sell as soon as possible, will depend on the stock performance when the lockup ends.

Dr. Pam Marrone has been CEO of the company since inception and continues to lead the company. She has been a great role model for many in our region. Prior to MBI she founded Agraquest, another Davis company, that was acquired last year for $425M by Bayer CropScience. Pam is a pioneer in the area of environmentally responsible bio-based pest management and plant health products. She laid the groundwork for all others with her work getting the EPA to recognize and approve bio-created agricultural products.

Update 08.03.2013 — see the article in the Sacramento Bee.

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