Cell Therapeutics swaps stock for $1.85 million of 4% convertibles

By Angela McDaniels

Tacoma, Wash., May 26 - Cell Therapeutics, Inc. agreed to exchange 1,863,564 shares of common stock for $779,000 principal amount of its 4% convertible senior subordinated notes due 2010, according to an 8-K filing with the Securities and Exchange Commission.

This brings the total amount of convertibles exchanged under the company's previously announced exchange agreements to $1,848,000.

The company agreed on May 16 to issue up to 60 million shares in exchange for up to $30 million of the convertibles.

The exchange agreements were reached with several holders of the convertibles. Under one of the agreements, the company agreed on May 18 and May 19 to exchange 2,439,593 shares for $1,069,000 principal amount of the convertibles.

The company terminated the exchange agreements on May 23.

The final number of shares and final principal amount of convertibles exchanged was determined based on factors that included the trading price and volume of the common stock during the term of the exchange agreements, the volume-weighted average price of the stock and the setting of minimum share prices with respect to the maximum number of shares that could be exchanged on a particular trading day.

The company paid accrued interest up to but excluding the settlement date in cash.

Cell Therapeutics is a Seattle-based biopharmaceutical company developing a portfolio of oncology products.

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