Cellectis draws €20 million tranche from EIB, issues warrants
Cellectis announced it has drawn the first €20 million tranche under its credit facility with the European Investment Bank (EIB). The drawdown is linked to a warrant agreement, granting the EIB rights to acquire company shares.
New York – Cellectis, a clinical-stage biotechnology company, confirmed on April 4, 2023, that it has drawn the first tranche of €20 million from a credit facility of up to €40 million with the European Investment Bank (EIB). The company also finalized the related warrant agreement, a condition for the funding. Cellectis intends to use the proceeds to advance its pipeline of allogeneic CAR T-cell product candidates, including UCART22, UCART20x22, UCART123, and UCARTCS1.
The disbursement of the first tranche (Tranche A) was contingent upon several conditions, including the issuance of 2,799,188 warrants to the EIB on March 28, 2023. These warrants represent 5.0% of Cellectis' outstanding share capital at the time of issuance, with an exercise price of €1.92. Tranche A matures six years from its disbursement and carries an annual interest rate of 8%, which will be capitalized annually.
The credit agreement includes provisions for prepayment, either initiated by Cellectis or demanded by the EIB under certain circumstances, such as a change of control or senior management changes. The EIB can also demand immediate repayment of the outstanding amount or cancel undisbursed tranches in the event of default.
The number of warrants to be issued for subsequent tranches (Tranche B and C) will depend on future financing activities and partnerships. The EIB warrants are valid for twenty years from their issuance date and will automatically expire thereafter. They may become exercisable earlier upon certain events, such as a change of control.