Cell Therapeutics (CTIC) Enters $20M Preferred, Warrant Direct Offering

December 9, 2011 6:45 AM EST Send to a Friend
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Cell Therapeutics, Inc. (Nasdaq: CTIC) has entered into an agreement to sell, subject to customary closing conditions, $20 million of shares of its Series 14 Preferred Stock and warrants to purchase shares of its common stock in a registered offering to two institutional investors. Each share of Series 14 Preferred Stock is convertible at the option of the holder, at any time during its existence, into approximately 870 shares of common stock at a conversion price of $1.15 per share of common stock, for a total of approximately 17,391,304 shares of common stock.

In connection with the offering, the investors received warrants to purchase up to 6,956,522 shares of common stock. The warrants have an exercise price of $1.45 per warrant share, for total potential additional proceeds to the Company of approximately $10.1 million upon exercise of the warrants for cash. The warrants are exercisable beginning six months and one day after the date of issuance and expire five years and one day after the date of issuance.

Shares of the Series 14 Preferred Stock will receive dividends in the same amount as any dividends declared and paid on shares of common stock and have no voting rights on general corporate matters.

The closing of the offering is expected to occur on December 13, 2011, at which time the Company will receive the cash proceeds and deliver the securities.


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