Cellid Raises Additional 3 Billion Won After Change in Control, Accelerating Personalized Cancer Vaccine Business

Cellid has decided to issue 3 billion won in new shares through a third-party allotment. The move appears to be more than a simple effort to secure operating funds; it follows a 10 billion won share issuance that transferred control of the company. After its COVID-19 vaccine trial failed, Cellid faced a crisis. Now, as it declares a shift to becoming a specialist in personalized cancer vaccines in partnership with a medical IT company, it is seeking additional funding.

Cellid’s governance changes after COVID-19 vaccine setback

Cellid disclosed that its board met on the 22nd and approved a third-party allotment of 1,333,332 common shares at 2,250 won per share. The issue price was calculated by applying a 10% discount to the weighted average share price of 2,496 won from the third trading day through the fifth trading day before the subscription date. The new shares will be allocated equally, with 666,666 shares each, to the Centrustr Investment Association and the SPE Partners Investment Association. The approximately 3 billion won in proceeds will be used entirely for operating expenses, with about 1.5 billion won to be spent in each of 2027 and 2028 or later.

Cellid’s sweeping business pivot is behind the share issuance. In June, the company fell into serious difficulty after failing to meet the primary efficacy endpoint in a global phase 3 trial of its COVID-19 vaccine compared with the control, Pfizer’s vaccine. However, recently released safety data showed an adverse event rate of 34.38%, about half Pfizer’s rate of 69.96%, leading to assessments that the data had demonstrated some of the technical value of Cellid’s platform.

To overcome the crisis, Cellid carried out a 10 billion won share issuance that transferred control to Huniverse Global, a company specializing in precision medicine hospital information systems, between Sept. 21 and 23, just before the disclosure. Huniverse Global, in which Korea University Medical Technology Holdings owns a 37% stake, has built cloud-based precision medicine systems at major hospitals in South Korea. Including the latest 3 billion won issuance, Cellid has secured a total of 13 billion won in research and development and operating funds in a short period.

Investment partnership funds to support cancer vaccine pipeline

Cellid said it selected the Centrustr Investment Association and SPE Partners Investment Association as recipients after comprehensively considering their ability to make payment and investment intentions in light of the company’s management objectives. The subscription date is the 28th, the payment date is Oct. 8, and the new shares are scheduled to be listed Oct. 29. Because the offering is less than 3 billion won, it will be conducted as a small public offering without filing a securities registration statement. Before the issuance, the company had 29,502,977 shares outstanding.

The core of Cellid’s new business model is to combine the extensive medical big data held by Huniverse Global with BVAC, Cellid’s cancer immunotherapy platform. The company aims to become a specialist in personalized cancer vaccines. Cellid CEO Chang-yul Kang said, “We will actively use medical big data to complete the successful development of personalized cancer vaccines and strengthen our position in the global biotech market.”

In late August, Cellid drew market attention as its share price surged about 55.9% in six trading days amid concerns about a resurgence of COVID-19 and expectations that clinical data would be supplemented. The latest issuance adds to dilution concerns, but how effectively the funds are used to maintain existing pipelines and build the foundation for new businesses is seen as a factor that could determine the share price’s direction.

Further fundraising remains possible under dual-track management

Once payment for the 10 billion won share issuance is completed in November, Huniverse Global will control a majority of the board, including the CEO position. Founder and CEO Chang-yul Kang will step down to become the second-largest shareholder but will oversee research and development, as a dual-track management structure focused on commercializing cancer and COVID-19 vaccines is set to take shape.

The two companies are reportedly not stopping at the 13 billion won raised in this round and have agreed to seek additional funding in the future, including through convertible bond issuance. Whether next-generation, data-driven personalized cancer vaccines—combining a medical IT company’s precision clinical big data with a biotech company’s cancer vaccine platform—can deliver tangible results, such as technology exports, in the global oncology market will be a key factor in determining the success of Cellid’s business transformation.