Celyad Oncology (NASDAQ:CYAD) stock is heading higher on Friday thanks to some recent news.
The big announcement sending CYAD stock higher today is a $32.5 million private placement. This has it entering into a subscription agreement with an affiliate of Fortress Investment Group for the private placement of 6.5 million shares.
It’s worth pointing out that the private placement prices shares of CYAD stock at $5 each. That’s worth noting since shares of the biotech company’s stock closed out trading on Thursday at $3.64 per share. It’s also an 18.5% premium to the stock’s 30-day volume-weighted average price.
Celyad Oncology is expecting the private placement to close next Wednesday but what does it plan to do with the cash? The clinical-stage biotech company intends to use the money to further its research and development.
Celyad Oncology specifically focuses on “the discovery and development of chimeric antigen receptor T cell (CAR T) therapies for cancer.” That includes its allogeneic CAR T candidates CYAD-101 and CYAD-211, as well as other treatments in the works.
Filippo Petti, CEO of Celyad Oncology, said the following in the news release sending CYAD stock higher today.
“This transformative investment provides an important springboard for the Company and further strengthens our corporate initiatives to advance our novel allogeneic CAR T product candidates. The growth financing will be essential for us to expand our current allogeneic CAR T pipeline by continuing to exploit our differentiated, non-gene edited technologies and armored CAR T franchise.”
CYAD stock is up 38.8% as of Friday morning but are down nearly that same amount since the start of the year.
If you’re on the lookout for more hot stock market news today, then stick around!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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