Gamida Cell Ltd. ( GMDA ) shares are plunging in the morning session on Wednesday.

The company said it entered into a restructuring support agreement with certain funds managed by Highbridge Capital Management.

The transaction aims to offer Gamida Cell ( GMDA ) a long-term financial runway, aiding Omisirge (omidubicel-onlv) commercialization, via a voluntary Israeli restructuring proceeding.

Check This Out: Why Is NIO Stock Trading Lower Today?

Highbridge will convert $75 million of its existing unsecured convertible senior note into equity in the company.

“Our search for strategic alternatives did not yield an actionable proposal from a partner who could address our financial challenges and support the ongoing commercialization of Omisirge,” said Abbey Jenkins, President and Chief Executive Officer of Gamida Cell ( GMDA ).

“This restructuring transaction will enable Gamida Cell ( GMDA ) to remain a going concern and will support our ongoing efforts to make Omisirge available to more transplant centers and their patients.”

The company will receive $30 million of new capital from Highbridge on the effective date of the restructuring. 

Gamida Cell ( GMDA ) will become a private company wholly owned by Highbridge, and the company’s outstanding ordinary shares are expected to be canceled.

“Despite Gamida Cell’s financial struggles, we believe in the potential of Omisirge to fulfill an important unmet need in stem cell transplant,” said Jonathan Segal, Co-Chief Investment Officer at Highbridge Capital Management. 

The company expects the transaction to close in the second quarter following approval by the Israeli court.

Gamida Cell ( GMDA ) reported net revenue of $1.8 million for the 12 months ending December 31, 2023, resulting from the delivery of 6 units of Omisirge. 

The company reported a net loss per share of 57 cents for FY23, narrower than the net loss of $1.24 a year ago. 

As of December 31, 2023, Gamida Cell ( GMDA ) had total cash and equivalents of $46.6 million compared to $64.7 million as of December 31, 2022. 

Gamida Cell ( GMDA ) also announced certain organizational updates, under which it will implement a headcount reduction of 25%. In addition, as of March 31, 2024, Gamida Cell ( GMDA ) will finalize the wind-down of its Jerusalem office and consolidate all of its Israel operations in Kiryat Gat.

Price Action: GMDA shares are trading lower by 82.5% to $0.06 on the last check Wednesday.