Global asset manager Fidelity International just invested $5.2 million in Australian stem cell and regenerative medicine company Cynata Therapeutics Limited.
The investment brings Boston-based Fidelity’s holding in Cynata to about 10%.
Under the deal, Fidelity will get 4 million shares at $1.275 each, a 4.5% premium to Cynata’s closing price on Friday.
A short time ago, the company’s shares were trading at $1.28, up 2.4%.
Cynata CEO Ross Macdonald says Fidelity has been a supporter of Cynata for some time now.
“We are pleased that their investment recognises the multiple and significant opportunities available to Cynata and the potential of our Cymerus platform to develop stem cell products to treat a wide range of diseases,” he says.
Vesparum Capital is acting in an independent capital markets advisory role for Cynata.
Cynata’s stem cell technology, Cymerus, allows for the\manufacture of mesenchymal stem cells on a commercial scale.
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