Cancer-fighting biotech firm rents San Jose building linked to lawsuit

SAN JOSE – A biotech firm whose stated goal is to seek a “world without cancer” has leased a large San Jose building that was embroiled in a lawsuit stemming from allegations of real estate fraud and fraud.

Khloris Biosciences, which says it is pursuing a cancer vaccination, has struck a deal to lease a building at 5729 Fontanos Way in San Jose, according to a lawsuit on file with the Santa Clara County Superior Court.

According to documents filed July 6 with the Santa Clara County Recorder’s office, the Southern San Jose building has also been purchased by a Khloris Biosciences investment associate, whose chief executive officer, Khloris Bio’s co-founder and CEO, Gene are sown. ,

The affiliate, Atlas Capital Investments, of which Buie is a key member, paid $27.4 million for the building, county property records show.

TA Realty, acting through an affiliate, sold the building to Atlas Capital Investments, according to public documents.

The sale of the property comes in the wake of a lawsuit that was filed by Khloris Bioscience and Atlas Capital against TA Realty in December 2021.

Khloris and Atlas claimed in the lawsuit that TA Realty attempted to defraud Khloris about how much money would be needed to purchase the building, court papers show.

As part of the lease agreement, Khloris Biosciences acquired the rights to be the first to offer to purchase the building.

In October 2021, Khloris made an offer to buy the building and the land below it for $27.4 million, according to court papers.

But soon after, the lawsuit claims, TA Realty informed Khloris Biosciences that a deal had been struck with another party to buy the building for $28.63 million, which was $1.23 million more than the price Khloris had proposed. .

“The defendants (TA Realty and some of its executives) pressured the plaintiffs (Khloris Biosciences and Atlas Capital) to close this large transaction as quickly as possible,” the lawsuit claims.

This news organization has sent two emails to both John Powell and James Raisides, executives of TA Realty and named as defendants in the lawsuit, to request comments regarding the lease, the purchase of the property, and the litigation.

The court papers alleged, “the defendants intended to induce the plaintiffs to agree to pay an above-market purchase price”. “The defendants withheld and suppressed the highly material fact that the actual purchase price was only $27.4 million.”

Khloris Biosciences claimed that it only managed to avoid paying the high price through a twist of fate: Khloris used the same appraisers that competing buyers used for the property.

In April of this year, Khloris Biosciences and Atlas Capital requested that the lawsuit be dismissed. According to the docket of the case, the defendants in the trial never filed any response to the suit in court.

Khloris Biosciences was located on a portion of the Mountain View Biotech and Life Sciences campus, but the company’s website states that Khloris is now located in the South San Jose building.

At the same time it bought the San Jose building, Khloris affiliate Atlas Capital took out a $18.4 million loan from Evergreen Advantage, county property records show.

As part of the company’s cancer vaccine discovery, Khloris uses a specialized stem-cell technology called iPSC to induced pluripotent stem cells.

In 2019, Khloris Biosciences received a high-profile financial boost when pharmaceutical behemoth Bayer, acting through a subsidiary, invested in Khloris. Terms were not disclosed.

“This alliance is in line with our passion to develop truly innovative and disruptive cancer treatments that have a large and lasting impact on disease,” Bui, CEO of Khloris Biosciences, said in a prepared release at the time of the Bayer investment.

Leave a Comment

%d bloggers like this: