Celyad [NASDAQ: CYAD] Announces Subscription Agreement with Fortress Group

Celyad Oncology SA [NASDAQ: CYAD] disclosed that it has inked a subscription agreement with affiliates of Fortress Investment Group. The company is intending to commence the private placement of 6,500,000 ordinary shares. CYAD is expecting a gross profit of USD 32.5 million about EUR 28.7 million from the offering.

As per the terms of the private placement, the Company will issue the ordinary shares at a price of USD 5.00 which is about EUR 4.42 per share, which signifies an 18.5% premium to the 30-day volume-weighted average price (VWAP). Moreover, the company disclosed that as per the pact the subscription will happen within the context of the authorized capital and it is likely to close on or about December 8, 2021, after the fulfillment of customary closing conditions.

In addition, CYAD is planning to utilize net profit from the private placement to provide financial support for R& D expenses. It covers the clinical development of its allogeneic CAR T candidates CYAD-101 and CYAD-211, to promote the current pipeline of preclinical CAR T candidates. It will also use the profit to explore and develop additional preclinical product candidates using its patented non-gene edited short hairpin RNA (shRNA) technology platform.

Furthermore, it is also planning to use a portion of the profit for working capital, other general business purposes, and the improvement of the Company’s intellectual property. Celyad believed that this revolutionary investment offers an important catalyst for the Company and further supports its corporate projects to improve its novel allogeneic CAR T product candidates.

CYAD is confident that Fortress’s expertise in the intellectual property domain further confirms its robust patent portfolio and underlines its position within the allogeneic CAR T field. The growth financing will be essential for a company to extend its current allogeneic CAR T pipeline by continuing to utilize its differentiated, non-gene edited technologies and armored CAR T franchise.