Proceeds finance clinical development and general corporate purposes
By Devika Patel
Knoxville, Tenn., July 27 - CytRx Corp. said it priced a $20.38 million public offering of stock. The deal was announced Tuesday and has a 15% greenshoe.
The company will sell 39.2 million common shares at $0.52 per share. The price per share is an 18.75% discount to $0.64, the July 26 closing share price.
Investors will also receive warrants for 39.2 million shares, which are each exercisable at $0.64 for five years. The strike price is identical to the July 26 closing share price.
Settlement is expected Aug. 1.
Cowen and Co., LLC and Roth Capital Partners, LLC are the underwriters.
Proceeds will be used for clinical development of drug candidates and general corporate purposes, which may include working capital, capital expenditures, research and development expenditures and other commercial expenditures.
Based in Los Angeles, CytRx develops human therapeutics.
Issuer: | CytRx Corp.
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Issue: | Common stock
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Amount: | $20,384,000
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Greenshoe: | 15%
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Shares: | 39.2 million
|
Price: | $0.52
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Warrants: | For 39.2 million shares
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Warrant expiration: | Five years
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Warrant strike price: | $0.64
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Underwriters: | Cowen and Co., LLC and Roth Capital Partners, LLC
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Announcement date: | July 26
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Pricing date: | July 27
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Settlement date: | Aug. 1
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Stock symbol: | Nasdaq: CYTR
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Stock price: | $0.64 at close July 26
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Market capitalization: | $44.8 million
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