2023-11-15 05:22:28 ET
Cellectis ( NASDAQ: CLLS ) shares gained 9% premarket on Wednesday after the French biotech firm entered a binding agreement regarding the previously announced additional equity investment of $140M by AstraZeneca ( NASDAQ: AZN ).
Earlier this month, AstraZeneca ( AZN ) said it would invest $245M in Cellectis ( CLLS ) as part of a deal to drive development of novel cell and gene therapy products.
Cellectis will receive an initial payment of $105M from AstraZeneca ( AZN ) in the fourth quarter of 2023, of which $25M will be an upfront cash payment and $80M will be equity investment.
A further $140M equity investment was contemplated in early 2024, a binding agreement for which has been signed following the consultation of Cellectis' works council.
The additional investment will be made by way of subscription of 10M class A convertible preferred shares and 18M class B convertible preferred shares, in each case at a price of $5/share.
The closing of the transaction remains subject to approval of the extraordinary general meeting of the shareholders of Cellectis expected to be held on or around December 22, 2023, as well as clearance from the French Ministry of Economy.
The initial equity investment represents an equity stake of 22% in Cellectis ( CLLS ). The additional investment will give AstraZeneca ( AZN ) a stake of about 44% in the French company.
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Cellectis stock jumps on execution of $140M additional investment with AstraZeneca