On August 2, 2020 Legend Biotech (NASDAQ: LEGN) reported preliminary results for the first half of 2020 (Press release, Legend Biotech, AUG 2, 2020, View Source [SID1234562665]).

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For the six months ended June 30, 2020, Legend Biotech expects to record a loss from approximately US$89.0 million to US$103.0 million from continuous operations (before one-time charges, including commission fee for issuance of Series A convertible redeemable preferred shares ("Series A Preferred Shares"), changes of fair value of such Series A Preferred Shares, and listing expenses), including research and development expenses of approximately US$96.5 million to US$111.8 million.

In addition, Legend Biotech expects to report a one-time non-cash charge of approximately US$80.0 million caused by the changes of fair value of Series A Preferred Shares, which was derived from the automatic conversion of all outstanding Series A Preferred Shares (plus any dividends accrued but unpaid on the Series A Preferred Shares) into ordinary shares, par value $0.0001 per share, of Legend Biotech ("Ordinary Shares") upon Legend Biotech’s listing on the Nasdaq Global Market. The details of the automatic conversion of the Series A Preferred Shares into Ordinary Shares are described in Legend Biotech’s prospectus filed with the Securities and Exchange Commission on June 8, 2020. The changes in fair value led to an increase of share premium, which in essence, had no impact on the net assets of Legend Biotech and its subsidiaries.

As of June 30, 2020, Legend Biotech had approximately US$562.4 million of cash and cash equivalents and approximately US$75.6 million in time deposits.

The information contained in this press release is preliminary and is based on the latest estimated unaudited management accounts for the six month period ended June 30, 2020. Such information is not a comprehensive statement of Legend Biotech’s results for, and as of, this period, and are subject to the completion of management’s and Legend Biotech’s audit committee’s reviews and other financial closing processes and potential adjustments. Accordingly, Legend Biotech’s actual results for this period may differ materially from the preliminary estimated data presented in this press release. The information contained in this press release has not been, and is not based on information that has been, audited, or reviewed by Legend Biotech’s independent auditor.

This preliminary estimated data should not be considered a substitute for the interim financial results for the six months ended June 30, 2020, to be filed with the Securities and Exchange Commission (the "SEC") under cover of Form 6-K, which Legend Biotech expects to occur before the end of August 2020.