Cellectis amends $20 Million Convertible Note Terms with Partner Cytovia Therapeutics
Cellectis announced on January 20, 2023, that it has amended the financial terms of a $20 million convertible note issued by its partner, Cytovia Therapeutics. The changes affect conversion clauses and interest rates.
New York – Cellectis, a clinical-stage biotechnology company developing cell and gene therapies, announced on January 20, 2023, amendments to the financial terms of a $20 million convertible note issued by its partner, Cytovia Therapeutics, LLC ("Cytovia"). The note was originally issued as an upfront collaboration consideration under their research and license agreement.
The amended and restated note now provides for automatic conversion into Cytovia common stock in the event of certain fundamental transactions that result in Cytovia becoming a public reporting company. Cellectis also holds the option to convert the note in connection with specific financing transactions, upon a company sale, or at final maturity. Each conversion is subject to a 9.9% ownership cap, with the remaining balance potentially issuable as pre-funded warrants.
Among other modifications, the amended note increases the annual interest rate to 10%, with a potential step-up of 10 percentage points upon an event of default. Additionally, the agreement mandates the repayment of 50% of the outstanding amount by April 30, 2023.
Cellectis utilizes its gene-editing platform to develop therapies for cancer and other diseases. Cytovia Therapeutics is a key partner in this endeavor. These adjustments to the convertible note's terms reflect strategic and financial alignments within their ongoing collaboration.