Gamida Cell Shares Plummet Following Transition to Privately Owned Entity Under Highbridge Capital Management

1. Gamida Cell, a cell therapy pioneer known for turning cells into powerful therapeutics, announced a restructuring plan involving Highbridge Capital Management, its primary lender.
2. As part of the RSA, Gamida Cell will become a private company, fully owned by Highbridge, following Israeli court approval.
3. Highbridge will convert $75 million of unsecured convertible senior notes into equity in Gamida Cell and provide $30 million in new capital upon the effective date of the restructuring.
4. The capital influx is intended to support the ongoing efforts to commercialize Omisirge, an FDA-approved nicotinamide modified allogeneic hematopoietic progenitor cell therapy.
5. Gamida Cell had previously explored strategic options such as partnerships but could not find any actionable alternatives due to capital structure and liquidity constraints.
6. Despite the challenges, Highbridge expressed confidence in the potential of Omisirge to fulfill an important unmet need in stem cell transplants.
7. The transaction is expected to close in the second quarter of 2024, pending approval by the Israeli court.