Celularity Closes Over $10 Mln Initial Financing; Targets Positive Operating Cash Flow By Q1 2027
(RTTNews) - Celularity Inc. (CELU) announced the initial closing of a financing that generated more than $10 million in gross cash proceeds as part of a broader recapitalization plan of up to $28 million.
The recapitalization plan combines up to $25 million in new capital with the restructuring of approximately $3 million in existing debt.
The company said the financing is intended to support commercial execution, manufacturing expansion and revenue-generating opportunities.
Celularity is a regenerative and cellular medicine company developing and manufacturing placenta-derived cellular therapies, including its investigational cenplacel-L cell therapy.
The financing follows operating improvements that have reduced the company's monthly cash burn by more than $1 million. Celularity has also optimized its personnel and spending and is focusing resources on revenue-generating opportunities.
With the lower operating cost base and anticipated revenue growth, Celularity expects to achieve positive monthly operating cash flow by the end of the first quarter of 2027.
The company said its growth strategy includes increasing utilization of its purpose-built manufacturing facility and expanding commercial and manufacturing relationships.
Celularity's collaboration with MuseCell Innovations Pte. Ltd. provides for U.S. manufacturing capabilities for the Dezawa MuseCell platform and related products at its Florham Park, New Jersey facility.
The company also holds inventory of cenplacel-L that management estimates represents approximately $40 million in potential sales value. Celularity plans to pursue deployment of the inventory through commercial relationships in jurisdictions where its supply and use are legally authorized, subject to applicable regulatory requirements.
Under the initial financing, Celularity issued senior secured convertible notes and accompanying warrants.
The notes mature 24 months after their respective issuance dates and carry interest at 10% per annum, compounded annually.
Notes issued at the initial closing are initially convertible into Class A common stock at $1.50 per share.
The accompanying five-year warrants are initially exercisable at $1.50 per share.
Additional financing closings remain subject to investor election procedures and other conditions, and there can be no assurance that the full recapitalization amount will be completed.
Celularity also announced that Philip A. Barach will join its Board of Directors. Barach brings financial expertise and is expected to focus on capital allocation, operating accountability and stockholder returns.
Odeon Capital Group LLC acted as placement agent for the initial closing.
The company said the financing and operating initiatives are intended to support increased manufacturing revenue, greater utilization of its infrastructure and expansion of revenue-producing relationships.
Currently, CELU is trading at $1.30, up 13.04%.
