By Devika Patel
Knoxville, Tenn., March 31 - Cell Therapeutics, Inc. arranged a $20 million registered direct offering of series 4 preferred stock, according to a 424B5 prospectus supplement filed Wednesday with the Securities and Exchange Commission.
Each of the 20,000 preferreds will be convertible into 2,000 common shares at an initial conversion price of $0.50 per share. The preferreds are convertible into a total of 40 million shares.
Investors also will receive warrants for 20 million common shares. The warrants are exercisable at $0.6029 for four years.
Rodman & Renshaw, LLC is the agent.
Settlement is expected Tuesday.
Proceeds will be used for working capital and general corporate purposes.
Cell Therapeutics is a Seattle-based biopharmaceutical company developing treatments for cancer.
| Issuer: | Cell Therapeutics, Inc.
|
| Issue: | Series 4 preferred stock
|
| Amount: | $20 million
|
| Preferreds: | 20,000
|
| Price: | $1,000
|
| Conversion price: | $0.50
|
| Conversion ratio: | 2,000
|
| Warrants: | For 20 million shares
|
| Warrant expiration: | Four years
|
| Warrant strike price: | $0.6029
|
| Agent: | Rodman & Renshaw, LLC
|
| Pricing date: | March 31
|
| Settlement date: | April 6
|
| Stock symbol: | Nasdaq: CTIC
|
| Stock price: | $0.605 at close March 30
|
| Market capitalization: | $344 million
|
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