Celyad Oncology Shares Gain After Fortress Injects $32M Via Equity

Celyad Oncology SA CYAD has announced a private placement worth $32.5 million (about €28.7 million) with Fortress Investment Group. The offering includes the private placement of 6.5 million shares and will close by December 8.

• Celyad will issue shares at $5.00 (about €4.42) per share, representing an 18.5% premium to the 30-day volume-weighted average price. 
• The offer price represents a whopping 40% premium on Thursday's last close price of $3.56.
• The Company will use the proceeds to fund the development of CYAD-101 and CYAD-211, advance preclinical CAR T candidates, and discover and develop additional preclinical product candidates using its non-gene edited short hairpin RNA platform.
• As a result of the transaction, Fortress will hold 28.8% of the Company's shares.
• SVB Leerink acted as the exclusive placement agent for the private placement.
• The Company believes that private placement proceeds, cash and cash equivalents of €6.1 million combined with access to the equity purchase agreement established with Lincoln Park Capital Fund should be sufficient to fund expenses into 1H of 2023.
• Related Link: Celyad Oncology Stock Surges On Positive Data From Multiple Myeloma Cell Therapy.
• Price Action: CYAD shares are up 37.4% at $4.89 during the premarket session on the last check Friday.