Celularity extends debt maturity, issues stock to YA II PN

Celularity Inc. (NASDAQ:CELU), a biotechnology company specializing in pharmaceutical preparations with a market capitalization of $52 million and annual revenue of $54.22 million, announced on Monday that it has entered into a definitive agreement with investment firm YA II PN, Ltd. ("YA") which includes an extension of a convertible promissory note’s maturity date and the issuance of new equity securities.

On May 20, 2025, Celularity agreed to extend the maturity date of the convertible note, originally dated March 13, 2024, from May 12, 2025, to August 15, 2025. As part of the agreement, Celularity will issue 100,000 shares of restricted common stock to YA. These shares will come with piggyback registration rights, allowing YA to participate in any future registration statements filed by Celularity for the resale of these shares. According to InvestingPro data, the company operates with a significant debt burden of $68.84 million and a concerning current ratio of 0.38, indicating potential liquidity challenges.

This strategic financial maneuver is part of Celularity’s broader efforts to manage its debt obligations while simultaneously strengthening its relationship with YA, an existing investor. The issuance of common stock is an unregistered sale of equity securities, as referenced in the 8-K filing with the Securities and Exchange Commission (SEC). InvestingPro analysis reveals additional insights about the company’s financial health, with over 8 more exclusive ProTips available to subscribers.

Celularity, based in Florham Park, New Jersey, operates under the industrial classification of Pharmaceutical (TADAWUL:2070) Preparations, with the Central Index Key (CIK) number 0001752828. The company is incorporated in the state of Delaware and is recognized as an emerging growth company under the federal securities laws.

The information provided is based on a press release statement and the details have been taken from Celularity’s 8-K filing with the SEC. The transaction between Celularity and YA II PN, Ltd. reflects the company’s ongoing financial strategy and commitment to its shareholders.

In other recent news, Celularity Inc. has been notified by Nasdaq of non-compliance with listing rules due to a delay in filing its annual report, which was originally due on March 31, 2025. The company has until June 16, 2025, to submit a compliance plan, with a potential extension to regain compliance by October 13, 2025, if the plan is accepted. Celularity is actively working to address the delay and meet Nasdaq’s requirements. In another development, Celularity has extended the maturity date of a $3.15 million convertible note with Yorkville, moving it from March 13, 2025, to May 12, 2025. As part of this agreement, Celularity will issue 100,000 shares of its Class A common stock to Yorkville. Additionally, Celularity has entered a collaboration with BlueSphere Bio to manufacture cell therapy products, utilizing its cGMP manufacturing infrastructure. This agreement aims to produce BlueSphere’s T cell receptor therapies for high-risk leukemias. These recent developments reflect Celularity’s ongoing strategic initiatives and financial arrangements.

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