Funds to be used for working capital and general corporate purposes
By Devika Patel
Knoxville, Tenn., July 17 – CytRx Corp. said it priced a public offering of stock to raise about $18.3 million of net proceeds.
The company will sell about 28.6 million common shares at $0.70 apiece. The per-share purchase price is a 22.22% discount to the $0.90 closing price of the stock on July 14.
Investors also will receive warrants for about 28.6 million common shares. The one-year warrants are each exercisable at $0.70, also a 22.22% discount to the July 14 closing price.
Rodman & Renshaw is the bookrunner.
Settlement is expected July 20.
Proceeds will be used for working capital and general corporate purposes.
Based in Los Angeles, CytRx develops human therapeutics.
| Issuer: | CytRx Corp.
|
| Issue: | Common stock
|
| Amount: | $18.3 million (approximate, net)
|
| Shares: | 28.6 million (approximate)
|
| Price: | $0.70
|
| Warrants: | For about 28.6 million shares
|
| Warrant expiration: | One year
|
| Warrant strike price: | $0.70
|
| Bookrunner: | Rodman & Renshaw
|
| Pricing date: | July 15
|
| Settlement date: | July 20
|
| Stock symbol: | Nasdaq: CYTR
|
| Stock price: | $0.90 at close July 14
|
| Market capitalization: | $35.28 million
|
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