Hedge funds and investment banks have begun seeking to acquire Silicon Valley Bank deposits and investor deposit claims at a discount. Many investment experts have issued warnings that unless major US banks take over Silicon Valley banks or ensure 100% deposit returns, the US banking system will still face a severe impact when it opens on Monday.
More companies have disclosed their risk exposure to Silicon Valley Bank, with streaming service provider Roku and "first stock of the metaverse" Roblox each holding 26% and 5% of their cash at the bank. The UK subsidiary of Silicon Valley Bank is at risk of bankruptcy, and startups have jointly sent a letter to the Chancellor requesting intervention, otherwise the entrepreneurial ecosystem will regress by 20 years.
Yunding Xinyao (HKEX1952. HK), a biopharmaceutical company specializing in the development, manufacturing, and commercialization of innovative drugs and vaccines, has conducted a comprehensive analysis of the risk exposure to the Silicon Valley Bank (SVB) incident and hereby announces that our company only has a very small amount of cash in the bank (much less than 1% of the company's total cash).Yunding Xinyao also emphasized that the company expects to recover the majority of its deposits with Silicon Valley banks through insurance from the Federal Deposit Insurance Corporation (FDIC) and other compensation measures. The amount not covered by FDIC is approximately $1 million, and Yunding Xinyao has no deposits with other US banks except Silicon Valley Bank. The company believes that the impact of the Silicon Valley Bank incident on its business is very limited.
Yunding Xinyao has sufficient cash reserves and is currently expected to have a cash balance of approximately 430 million US dollars. The company has always adhered to and implemented prudent financial policies, with assets scattered across multiple banks and accounts. The company's financial condition is healthy.
In addition, multiple companies have issued statements:
Payoneer, an online financial services company, has less than $20 million in funds deposited in Silicon Valley banks.
Ambarella Company: Approximately $17 million in deposits are held at Silicon Valley Bank.
IRhythm Technologies, a digital health service company, has an operating account balance of approximately $54.5 million in Silicon Valley Bank. The company has an outstanding loan of $35 million with Silicon Valley Bank. Funds from channels outside of Silicon Valley Bank are still sufficient for the company's foreseeable future use.
Eyepoint Pharma, a pharmaceutical company, has millions of dollars in cash deposited in Silicon Valley banks. We have a maximum credit financing facility of $45 million with Silicon Valley Bank.
Biopharmaceutical company Karuna: The scale of cash or cash equivalents deposited in Silicon Valley banks is very limited. The funds exceeding the $250000 payout limit of the Federal Deposit Insurance Corporation are less than $1 million.
Axsome Therapeutics, a pharmaceutical company, has a large amount of cash deposited in both Silicon Valley Bank and Citibank.
Rocket Labs, a private aerospace manufacturer, holds 7.9% of its cash and cash equivalents at Silicon Valley Bank, totaling approximately $38 million.
