US global asset manager increases stake in Cynata

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Australian stem cell and regenerative medicine company Cynata Therapeutics (ASX:CYP) has raised $5.2 million through a share placement to global asset manager Fidelity International.

The placement means Fidelity's holding now increases to around 10 percent of Cynata stock.

Fidelity is a global asset manager that currently invests around the equivalent of AUD$414.5 billion globally.

Cynata is focused on the development of mesenchymal stem cell products manufactured using its Cymerus platform manufacturing technology.  It recently announced the completion of enrolment in its phase 1 clinical trial of CYP-001 for the treatment of acute graft versus host disease (GvHD).

Under the placement, Cynata will issue Fidelity with over four million fully-paid ordinary shares at a price of $1.275 per share, which is a 4.5 percent premium to its closing price on Friday 25 May.

Cynata said the placement will be used to strengthen its balance sheet and support product development.

According to CEO and managing director, Dr Ross Macdonald, “Fidelity has been a supporter of Cynata for some time now, and we’re delighted to have them become one of our largest shareholders. 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.”