July 4, 2022

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Celyad Oncology Announces $32.5 Million Personal Placement With Fortress Investment Group

MONT-SAINT-GUIBERT, Belgium, December 03, 2021–(Company WIRE)–Regulatory News:

Celyad Oncology SA (Euronext & Nasdaq:CYAD) (“Celyad” or the “Business”), a scientific-phase biotechnology business focused on the discovery and progress of chimeric antigen receptor T cell (Vehicle T) therapies for cancer, right now announced that it has entered into a membership agreement with an affiliate of Fortress Expenditure Team (this sort of affiliate “Fortress”) for the private placement of 6,500,000 regular shares for gross proceeds of USD 32.5 million (about EUR 28.7 million). The membership will choose area inside the framework of the authorized money and it is expected to near on or about December 8, 2021, matter to gratification of customary closing problems.

Pursuant to the conditions of the non-public placement, the Company will problem the common shares at a value of USD 5.00 (about EUR 4.42) for each share, which signifies a 18.5% premium to the 30-day quantity weighted average price (“VWAP”). The Corporation intends to use net proceeds from the private placement to fund study and advancement bills, such as the medical growth of its allogeneic Auto T candidates CYAD-101 and CYAD-211, to progress the existing pipeline of preclinical Auto T candidates, to uncover and develop more preclinical merchandise candidates applying its proprietary non-gene edited shorter hairpin RNA (shRNA) know-how platform, as very well as for doing the job money, other common company uses, and the enhancement of the Company’s intellectual assets.

As a result of the transaction, Fortress will keep 28.8% of the Company’s shares.

Filippo Petti, CEO of Celyad Oncology, commented, “This transformative investment provides an significant springboard for the Organization and even more strengthens our company initiatives to advance our novel allogeneic Vehicle T solution candidates. In addition, Fortress’s experience in the intellectual residence area even further validates our robust patent portfolio and emphasizes our placement within just the allogeneic Motor vehicle T discipline. The progress financing will be crucial for us to grow our latest allogeneic Car or truck T pipeline by continuing to exploit our differentiated, non-gene edited systems and armored Motor vehicle T franchise.”

“Celyad Oncology gives a unique optionality all over its technologies and intellectual house,” mentioned Christopher LiPuma, Director at Fortress. “In specific, the Company’s powerful IP posture all over allogeneic Vehicle T stands out as a crucial asset that we imagine will present the basis for the Enterprise to strategically produce equally novel cell remedy candidates and likely partnerships within just the interesting off-the-shelf mobile treatment landscape.”

SVB Leerink acted as the exclusive placement agent for the non-public placement, Goodwin Procter LLP and Harvest acted as lawful counsel to the Company. Skadden, Arps, Slate, Meagher & Flom LLP and Eubelius acted as authorized counsel to Fortress.

The Corporation thinks that pursuing the shut of the non-public placement, its current hard cash and income equivalents merged with accessibility to the equity obtain arrangement recognized with Lincoln Park Capital Fund, LLC must be ample, based mostly on the current scope of actions, to fund operating expenses and money expenditure necessities into the initial half of 2023.

In the framework of this expenditure, Fortress and the Enterprise have entered into a shareholders’ rights agreement. Pursuant to this settlement, Fortress will be topic to a customary lock-up obligation and standstill obligation, in each individual circumstance for 9 months next the closing of the private placement. Additionally, as extensive as Fortress holds 10% of the shares of the Firm, it will reward from a proper of initial offer you on any new indebtedness to be incurred by Celyad and on any new fairness securities to be issued, professional-rata its shareholding, as very well as of the appropriate to nominate two men and women to Celyad’s board of directors. In addition, as prolonged as Fortress holds 15% or far more of the excellent shares of the Corporation, specified mental property transactions will be subject matter to a 90% board the vast majority for approval. Celyad will propose an amendment to its article content of association to mirror this experienced ideal.

The securities to be issued in the private placement have not been registered less than the Securities Act of 1933 or relevant state securities legal guidelines and could not be available or bought in the United States absent registration underneath the Securities Act or an relevant exemption from these kinds of registration prerequisites. The Enterprise has agreed to customary registration rights covering the resale of the regular shares (in the sort of American Depositary Shares) bought in the personal placement.

This push release shall not constitute an offer you to market or the solicitation of an present to invest in the securities, nor shall there be any sale of the securities in any state in which these kinds of offer you, solicitation or sale would be unlawful prior to the registration or qualification underneath the securities laws of these types of state. Any presenting of the securities beneath the resale registration assertion will only be by indicates of a prospectus.

About Celyad Oncology SA

Celyad Oncology SA is a clinical-stage biotechnology business centered on the discovery and progress of chimeric antigen receptor T mobile (Automobile T) therapies for cancer. The Corporation is establishing a pipeline of allogeneic (off-the-shelf) and autologous (individualized) Car or truck T mobile remedy candidates for the procedure of each hematological malignancies and reliable tumors. Celyad Oncology was launched in 2007 and is based in Mont-Saint-Guibert, Belgium and New York, NY. The Company has obtained funding from the Walloon Location (Belgium) to assist the development of its Auto T cell therapy programs. For far more data, remember to pay a visit to www.celyad.com.

Forward-hunting statements

This launch could incorporate forward-looking statements, within just the indicating of applicable securities rules, which include the Non-public Securities Litigation Reform Act of 1995. Forward-searching statements incorporate statements concerning: the expected closing of the non-public placement, the use of proceeds from the personal placement and Celyad Oncology’s hard cash runway. Forward-hunting statements may perhaps include known and mysterious pitfalls and uncertainties which could trigger precise outcomes, economic affliction, overall performance or achievements of Celyad Oncology to vary materially from people expressed or implied by these kinds of ahead-hunting statements. This kind of hazard and uncertainty can be found in Celyad Oncology’s U.S. Securities and Exchange Commission (SEC) filings and reviews, such as in the latest Once-a-year Report on Variety 20-F filed with the SEC and subsequent filings and studies by Celyad Oncology. These ahead-wanting statements discuss only as of the day of publication of this doc and Celyad Oncology’s actual results might vary materially from those expressed or implied by these forward-looking statements. Celyad Oncology expressly disclaims any obligation to update any such forward-looking statements in this document to reflect any transform in its anticipations with regard thereto or any transform in occasions, ailments or conditions on which any this sort of assertion is centered, until required by legislation or regulation.

See resource variation on businesswire.com: https://www.businesswire.com/news/dwelling/20211202006013/en/

Contacts

Investors and Media:
Sara Zelkovic
Communications & Trader Relations Director
Celyad Oncology
[email protected]

Daniel Ferry
Taking care of Director
LifeSci Advisors, LLC
[email protected]