Florham Park-based Celularity Inc., a regenerative and cellular medicine company, said Feb. 10 it was in receipt of $12.2 million in net cash proceeds from the sale of about $126.3 million of its unused New Jersey net operating losses (NOLs) and $1.9 million of unused New Jersey research and development (R&D) tax credits.
The NOLs and R&D tax credits sale was administered through New Jersey’s Technology Business Tax Certificate Transfer Program, which enables qualified New Jersey-based technology and life science companies to sell their New Jersey NOLs and R&D tax credits for cash to buyers who buy and apply the credits to reduce taxable income.
The program is operated by the New Jersey Economic Development Authority, which serves as the State’s principal agency for driving economic growth.
“The funds Celularity received under this program provide non-dilutive, tax-free capital that strengthens our balance sheet and enhances liquidity as well as supports disciplined capital allocation to commercial opportunities for our GMP-level stem cell and other cell therapies and regenerative medicine programs, all targeting longevity and the preservation of human performance,” said Dr. Robert J. Hariri, chairman and chief executive officer of Celularity. “We are grateful to the New Jersey Economic Development Authority for their assistance in administering this valuable program supporting technology companies like Celularity.”
Celularity Inc. is a publicly traded regenerative and aging-related cellular medicine company developing, manufacturing, and commercializing advanced biomaterial products and allogeneic and autologous cell therapies, all derived from the postpartum placenta. The company believes that by harnessing the placenta’s unique biology and ready availability, it can develop therapeutic solutions that address needs for effective, accessible, and affordable therapies that target fundamental aging mechanisms such as cellular senescence, age-related chronic inflammation and tissue degeneration.
The Technology Business Tax Certificate Transfer Program enables approved technology and biotechnology businesses with net operating losses to sell their unused net operating loss carryover (NOL) and unused research and development tax credits for at least 80% of the value of the tax benefits to a profitable corporate taxpayer in New Jersey that is not an affiliated business. This allows technology and biotechnology businesses with net operating losses to turn their tax losses and credits into cash to buy equipment or facilities, or for other allowable expenditures.
The New Jersey Economic Development Authority determines eligibility, and the New Jersey Division of Taxation determines the value of the tax benefits.
