We are investigating whether the directors of Zymergen, Inc. (ticker: ZY) (“Zymergen”) acted in the best interests of Zymergen shareholders in approving the sale of Zymergen to Ginkgo Bioworks Holdings, Inc. (“Ginkgo”) in a stock deal that values Zymergen at $300 million.
If you remain an Zymergen shareholder and have questions about your legal rights, please contact us via the form below to discuss your options at no charge.
Why is there an investigation?
On July 25, 2022, Zymergen announced that it had agreed to be acquired by Ginkgo in an all-stock transaction that values Zymergen at an approximately $300 million. Under the terms of the agreement, Zymergen stockholders will receive a fixed exchange ratio of 0.9179 Ginkgo shares for each Zymergen share, representing 5.25% pro forma ownership of Ginkgo following the transaction. The agreement has been approved by the Zymergen board of directors (“Board”).
Our investigation concerns whether Zymergen’s Board acted in the best interests of Zymergen shareholders in approving the sale, including whether the acquisition price adequately compensates Zymergen shareholders, and whether all material information regarding the transaction has been fully disclosed.
Notably, in its latest Form 10-Q, Zymergen reported cash and equivalents of $337 million as of March 31, 2022. As such, Ginkgo is acquiring Zymergen at or less than cash value, and attributing zero value to Zymergen’s intellectual property.