(RTTNews) - Cellectis (CLLS) has entered into a Joint Research Collaboration Agreement, an investment agreement relating to an initial equity investment of $80 million, and a MOU relating to an additional equity investment of $140 million, with AstraZeneca. Cellectis will receive up to $245 million in cash, which consists up to $220 million equity investment and $25 million upfront payment, with potential for additional milestones, plus tiered royalties.
Under the Collaboration Agreement, AstraZeneca will leverage Cellectis' gene editing technologies and manufacturing capabilities to design cell and gene therapy candidate products. AstraZeneca will have an option for a worldwide license on the candidate products, to be exercised before IND filing. Cellectis' research costs will be funded by AstraZeneca.
As a condition to the signing of the Collaboration Agreement, AstraZeneca has agreed to make an initial equity investment of $80 million in Cellectis by subscribing for 16 million ordinary shares, at a price of $5.00 per share. AstraZeneca will own approximately 22% of the share capital, and 21% of the voting rights of the company.
The MOU contemplates that AstraZeneca will make a potential further equity investment in Cellectis of $140 million by subscribing for two newly created classes of convertible preferred shares of Cellectis, in each case at a price of $5.00 per share. Immediately following the additional investment, AstraZeneca would own approximately 44% of the share capital of the company and 30% of the voting rights of the company.
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