Cellectis announced Friday evening that it has amended the $20 million convertible note under the collaboration agreement with its partner Cytovia Therapeutics.

The biotech company explains that it has changed certain financial terms of the note issued by Cytovia in payment for their research collaboration and non-exclusive licensing agreement.

This update provides for automatic conversion into Cytovia common shares in respect of certain key transactions whereby Cytovia becomes a public company, and conversion at the option of Cellectis in respect of certain financial transactions, on sale of the company and at maturity.

In all cases, such conversion is subject to a holding limit of 9.9% of the capital, with the balance issuable in the form of pre-funded warrants.

Among other changes, the amended note increased the applicable interest rate of the note to 10% per annum, subject to a 10% increase in the event of the occurrence and continuation of an event of default.

It also provides for repayment of 50% of the outstanding amount on April 30, 2023, and extends the final maturity date for repayment of the remaining outstanding amount to June 30, 2023.

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