Celularity retires all senior secured debt in restructuring deal

FLORHAM PARK, N.J. - Celularity Inc. (NASDAQ:CELU), a regenerative medicine company with a market capitalization of $86 million, has eliminated $32 million in senior secured debt plus $9.6 million in unpaid interest through a major balance sheet restructuring, the company announced Monday. According to InvestingPro data, the company has been operating under significant debt pressure with a debt-to-equity ratio of 7.79.

The restructuring centers on an asset purchase agreement with Singapore-based Celeniv Pte. Ltd., a company formed by former lender Resorts World Inc. Pte. Ltd. (RWI) and Tan Sri Dato Lim Kok Thay, former Celularity director and Genting Group executive chairman. The move comes as InvestingPro analysis shows the company’s current ratio at 0.38, indicating challenges in meeting short-term obligations.

Under the agreement, Celularity sold its intellectual property assets to Celeniv for $33.8 million, which was used to retire outstanding debt to RWI and a promissory note from Mr. Lim. Celularity will maintain exclusive use of these assets through a license agreement with Celeniv for an initial five-year term, with an option to repurchase the assets during this period.

"We successfully monetized Celularity’s intellectual property assets to retire the Company’s senior secured debt in its entirety while retaining exclusive use of the assets," said Robert J. Hariri, M.D., Ph.D., Celularity’s Chairman and CEO, according to the press release.

The company also announced completion of an internal restructuring that establishes separate operating subsidiaries for its four commercial business units: advanced biomaterial products, longevity-focused cellular therapeutics, biobanking services, and contract development and manufacturing services.

The debt retired through this transaction was originally due for repayment in February 2026. The company stated the restructuring removes the senior secured lenders’ general security interest in all company assets while preserving Celularity’s exclusive use of its intellectual property.

Celularity develops and commercializes advanced biomaterial products and cell therapies derived from the postpartum placenta, targeting aging-related cellular mechanisms and tissue degeneration. Despite current challenges, the company has achieved impressive revenue growth of 138% over the last twelve months. InvestingPro subscribers can access 8 additional key insights about Celularity’s financial health and growth prospects.

In other recent news, Celularity Inc. announced the termination of its Chief Financial Officer, David Beers, effective immediately. The company clarified that Beers’ departure was "without cause" and unrelated to any financial or operational issues. Joseph DosSantos has been appointed as the interim CFO. Additionally, Celularity has entered into a definitive agreement with investment firm YA II PN, Ltd. This agreement includes extending the maturity date of a convertible promissory note from May 12, 2025, to August 15, 2025. As part of this arrangement, Celularity will issue 100,000 shares of restricted common stock to YA, which will have piggyback registration rights. These recent developments highlight significant changes in Celularity’s financial management and strategic agreements.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.