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Highlights
- The stocks of Celyad Oncology (CYAD) were up over 45% on Friday morning.
- Fortress Investment invested US$32.5 million in Celyad through a private placement.
- Fortress purchased 6.5 million shares of Celyad’s common stocks.
Shares of Celyad Oncology (NASDAQ:CYAD) jumped over 45% on Friday morning after Fortress Investment bought US$32.5 million worth of common stocks through a private placement.
The CYAD stock traded at US$5.18 at 11:41 am ET, up 45.51% from its previous close.
The New York-based investment management firm invested US$32.5 million in Celyad through a private share placement. The company purchased 6.5 million shares of common stocks of Celyad for US$32.5 million (around €28.7 million).
The company said it would use the proceeds for research and development activities, including the clinical development of allogeneic CAR T candidates CYAD-101 and CYAD-211.
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Celyad product development
The company plans to advance its current preclinical CAR-T candidate pipeline.
In addition, it intends to develop new drug candidates using its proprietary non-gene edited short hairpin RNA (shRNA) technology platform.
The company also hopes to use the funds as working capital and cover its general corporate expenses.
Fortress Investment director Christopher LiPuma said Celyad Oncology provides "unique optionality around its technology and intellectual property". He said Celyad’s strong IP position around allogeneic CAR T would provide a foundation to develop novel cell-therapy candidates.
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Celyad Oncology (CYAD) stock performance
Celyad’s market cap of CYAD is US$80.63 million. Its forward P/E one year -2.33. The stock saw the highest price of US$9.47 and the lowest price of US$3.53 in the last 52 weeks. Its trading volume was 7,478 on Dec 3. As of Sep 30, 2021, the company had cash and cash equivalents of €6.1 million (US$7.1 million), compared to €5.9 million (US$6.67 million) as of June 30, 2021.
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Bottomline
Celyad CEO Filippo Petti said the investment would strengthen the firm's corporate initiatives. He added that the growth financing would be essential to expand the allogeneic CAR T pipeline, the non-gene edited technologies, and the armored CAR T franchise.
