Celularity raises over $10M in debt financing, targets cash flow positive by Q1 2027

Celularity Inc., a regenerative and cellular medicine company, has raised over $10 million in debt financing through a private placement of senior secured convertible notes and warrants. The funds will be used to bring the company closer to achieving cash flow positivity by the first quarter of 2027. The recapitalization plan also includes restructuring around $3 million in existing debt, with the goal of reducing monthly cash burn by over $1 million.

Celularity expects to boost manufacturing revenue and deploy its existing cellular product inventory, which includes an investigational placenta-derived cell therapy, to contribute to this positive cash flow. The company has secured a five-year warrant initially exercisable at $1.50 per share, alongside the convertible notes that mature 24 months after issuance and bear 10% annual interest.

The company's president, Philip A. Barach, was added to the Board of Directors, expanding the board to a newly constituted five-member team. Odeon Capital Group LLC facilitated the placement. Celularity's growth strategy includes a collaboration with MuseCell Innovations Pte. Ltd. to establish U.S. manufacturing capabilities for the Dezawa MuseCell platform.