Celyad Oncology Announces .5 Million Personal Placement With Fortress Expenditure Team

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

Celyad Oncology SA (Euronext & Nasdaq:CYAD) (“Celyad” or the “Business”), a clinical-phase biotechnology organization centered on the discovery and improvement of chimeric antigen receptor T cell (Auto T) therapies for most cancers, today announced that it has entered into a membership agreement with an affiliate of Fortress Investment decision Group (these types of affiliate “Fortress”) for the personal placement of 6,500,000 common shares for gross proceeds of USD 32.5 million (about EUR 28.7 million). The membership will choose put in just the framework of the authorized cash and it is predicted to close on or about December 8, 2021, subject matter to gratification of customary closing situations.

Pursuant to the phrases of the non-public placement, the Company will situation the common shares at a price tag of USD 5.00 (about EUR 4.42) for every share, which represents a 18.5% top quality to the 30-working day volume weighted ordinary selling price (“VWAP”). The Corporation intends to use internet proceeds from the personal placement to fund exploration and progress costs, like the medical progress of its allogeneic Vehicle T candidates CYAD-101 and CYAD-211, to advance the recent pipeline of preclinical Car or truck T candidates, to discover and produce added preclinical product candidates employing its proprietary non-gene edited shorter hairpin RNA (shRNA) technology system, as well as for doing the job cash, other common corporate functions, and the improvement of the Company’s mental home.

As a consequence of the transaction, Fortress will hold 28.8% of the Company’s shares.

Filippo Petti, CEO of Celyad Oncology, commented, “This transformative financial commitment presents an vital springboard for the Organization and further strengthens our company initiatives to progress our novel allogeneic Motor vehicle T item candidates. In addition, Fortress’s know-how in the mental residence domain more validates our sturdy patent portfolio and emphasizes our placement in just the allogeneic Car T industry. The progress financing will be vital for us to extend our present-day allogeneic Vehicle T pipeline by continuing to exploit our differentiated, non-gene edited technologies and armored Car or truck T franchise.”

“Celyad Oncology delivers a exclusive optionality close to its technologies and mental property,” stated Christopher LiPuma, Director at Fortress. “In certain, the Company’s solid IP place all around allogeneic Automobile T stands out as a vital asset that we consider will offer the basis for the Firm to strategically acquire both of those novel mobile therapy candidates and probable partnerships in the enjoyable off-the-shelf mobile treatment landscape.”

SVB Leerink acted as the exclusive placement agent for the personal placement, Goodwin Procter LLP and Harvest acted as authorized counsel to the Business. Skadden, Arps, Slate, Meagher & Flom LLP and Eubelius acted as authorized counsel to Fortress.

The Firm thinks that following the near of the non-public placement, its existing cash and dollars equivalents blended with obtain to the fairness purchase settlement established with Lincoln Park Funds Fund, LLC must be sufficient, centered on the existing scope of functions, to fund operating expenses and money expenditure specifications into the very first half of 2023.

In the framework of this financial commitment, Fortress and the Company have entered into a shareholders’ rights agreement. Pursuant to this arrangement, Fortress will be issue to a customary lock-up obligation and standstill obligation, in each and every case for 9 months subsequent the closing of the private placement. Furthermore, as lengthy as Fortress retains 10% of the shares of the Enterprise, it will profit from a ideal of to start with provide on any new indebtedness to be incurred by Celyad and on any new fairness securities to be issued, professional-rata its shareholding, as well as of the ideal to nominate two persons to Celyad’s board of administrators. In addition, as extensive as Fortress holds 15% or far more of the remarkable shares of the Firm, specified mental house transactions will be matter to a 90% board majority for approval. Celyad will suggest an modification to its content articles of association to reflect this skilled proper.

The securities to be issued in the private placement have not been registered under the Securities Act of 1933 or relevant condition securities regulations and could not be offered or offered in the United States absent registration beneath the Securities Act or an relevant exemption from this sort of registration needs. The Company has agreed to customary registration rights masking the resale of the ordinary shares (in the variety of American Depositary Shares) sold in the private placement.

This push release shall not constitute an supply to promote or the solicitation of an provide to buy the securities, nor shall there be any sale of the securities in any state in which these offer, solicitation or sale would be illegal prior to the registration or qualification under the securities guidelines of these point out. Any providing of the securities less than the resale registration statement will only be by suggests of a prospectus.

About Celyad Oncology SA

Celyad Oncology SA is a medical-stage biotechnology company concentrated on the discovery and growth of chimeric antigen receptor T cell (Automobile T) therapies for most cancers. The Organization is developing a pipeline of allogeneic (off-the-shelf) and autologous (individualized) Auto T cell remedy candidates for the remedy of each hematological malignancies and sound tumors. Celyad Oncology was launched in 2007 and is based mostly in Mont-Saint-Guibert, Belgium and New York, NY. The Corporation has been given funding from the Walloon Location (Belgium) to support the improvement of its Auto T cell treatment programs. For more data, be sure to stop by www.celyad.com.

Ahead-hunting statements

This launch might have ahead-looking statements, within just the this means of relevant securities rules, which includes the Personal Securities Litigation Reform Act of 1995. Ahead-seeking statements include things like statements concerning: the anticipated closing of the private placement, the use of proceeds from the private placement and Celyad Oncology’s dollars runway. Ahead-on the lookout statements may perhaps entail recognized and mysterious risks and uncertainties which may possibly result in genuine results, economic condition, general performance or achievements of Celyad Oncology to vary materially from people expressed or implied by such ahead-on the lookout statements. These chance and uncertainty can be uncovered in Celyad Oncology’s U.S. Securities and Trade Commission (SEC) filings and stories, together with in the most recent Once-a-year Report on Form 20-F submitted with the SEC and subsequent filings and reviews by Celyad Oncology. These ahead-wanting statements talk only as of the date of publication of this doc and Celyad Oncology’s true final results may vary materially from these expressed or implied by these forward-wanting statements. Celyad Oncology expressly disclaims any obligation to update any these types of forward-hunting statements in this doc to replicate any adjust in its expectations with regard thereto or any improve in functions, ailments or conditions on which any this kind of assertion is based mostly, except necessary by legislation or regulation.

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

Daniel Ferry
Controlling Director
LifeSci Advisors, LLC
[email protected]

By Sia