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Cytogen (CYTO) Announces $20 Million Private Placement

November 7, 2006 9:32 AM EST
Cytogen Corporation (Nasdaq: CYTO) has entered into purchase agreements with certain institutional investors for the sale of 7,092,203 shares of its common stock and 3,546,108 warrants to purchase shares of its common stock at a price of $2.82 per unit, through a private placement.

The warrants have a term of five years and an exercise price of $3.32 per share. The transaction is expected to provide gross proceeds of approximately $20 million to Cytogen before deducting costs associated with the offering. The Company expects to use the proceeds to support the commercial launch of CAPHOSOL(R), which Cytogen in-licensed in October 2006, advance its clinical development programs, pursue additional in-licensing opportunities, and other general corporate purposes.

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