Why Has Gamida Cell (GMDA) Stock Dropped Today?

Gamida Cell Ltd. (NASDAQ: GMDA) shares plunged by -18.65% on Wednesday after the company announced the pricing of its offering. GMDA stock closed the last session at $1.61 trading 0.33 million shares.

How much has GMDA announced for its pricing?

In a follow-on public offering, Gamida Cell (GMDA) has announced the pricing of 12,905,000 ordinary shares.

  • For aggregate gross proceeds of $20 million, the offering will be priced at $1.55 per share before discount and commissions from underwriting, as well as estimated offering expenses.
  • Further, Gamida Cell has granted the underwriters an option to purchase 1,935,750 additional ordinary shares for the price of the public offering, less underwriting discounts, and commissions, for a period of 30 days.
  • According to the schedule, the offering is expected to close on or about September 30, 2022, assuming all closing conditions are met.
  • This offering will be used by GMDA in conjunction with its existing cash, cash equivalents, and trading financial assets to support possible commercial readiness activities for omidubicel, if approved.
  • In addition to the continued clinical development of Gamida Cell’s NK product candidates, including GDA-201, the proceeds will also be used for general corporate purposes, such as administrative expenses and working capital.

GMDA’s other efforts?

A separate release announced that GMDA had signed a commitment letter with Highbridge Capital Management, LLC (“Highbridge”).

  • Based upon the Commitment Letter, Highbridge has committed to providing a $25,000 senior secured, convertible term loan to GMDA.
  • There are certain conditions attached to the Commitment Letter, including the completion of a Gamida Cell equity offering resulting in gross proceeds of at least $20 million, which do not constitute a definitive credit facility.
  • There is maturity date of 24 months from the closing date on the Commitment Letter, among other things.
  • A quarterly interest rate of 7.50% is also included in the Commitment Letter, subject to an increase to 12.00% upon certain events.

How will GMDA go about financing?

There are certain conditions, and the payment will be made in ordinary shares of GMDA valued at 95% of the volume-weighted average price within a specified time frame. Gamida Cell (GMDA) will be using its own assets and those of its subsidiaries to secure the obligations under the term loan.

Related Posts

Life Telegraph
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.