Celularity Inc. (NASDAQ: CELU) raised over $10 million in a private placement of senior secured convertible notes and accompanying warrants, the company said Sept. 24.
The Florham Park, New Jersey–based developer of cellular therapies said the initial closing provides gross proceeds above $10 million. The broader recapitalization plan contemplates up to $25 million in new cash investment and the restructuring of approximately $3 million in existing debt, it added.
Under the terms, the notes mature 24 months after issuance and carry 10% annual interest, compounded annually. They are initially convertible into Class A common stock at $1.50 per share. Five-year warrants issued alongside the notes are initially exercisable at the same $1.50 per-share price, the company said.
MuseCell Innovations Pte. Ltd. participated in the offering, with Odeon Capital Group LLC acting as placement agent.
Celularity said it has reduced monthly cash burn by more than $1 million through personnel optimization and resource reallocation. The company expects to achieve positive monthly operating cash flow by the end of the first quarter of 2027, driven by anticipated increased manufacturing revenue and the deployment of existing cellular product inventory.
Management estimated that inventory of cenplacel-L, an investigational placenta-derived cell therapy, represents approximately $40 million in potential sales value.
Philip A. Barach is joining the company's board of directors, where he will sit alongside existing members Robert J. Hariri and Peter H. Diamandis. The newly constituted board comprises five members, with two additional directors expected to be named later. The appointments remain subject to applicable requirements, including the Rule 14f-1 information statement process.
