Cell Therapeutics to sell $20M in preferred stock
Biotechnology company Cell Therapeutics Inc. said Wednesday it has agreed to sell $20 million in preferred stock and warrants to three institutional investors.
The company said it could raise as much as $32 million before expenses if the investors exercise all of their warrants to buy stock.
Cell Therapeutics sold 20,000 preferred shares, each of which can be converted into 2,000 shares of common stock at a price of 50 cents each, for a total of 40 million new shares. The investors also purchased warrants to buy up to 20 million shares of stock at just over 60 cents each, which would bring Cell Therapeutics another $12 million in proceeds.
The warrants can be exercised starting in six months, and terminate in four years.
Cell Therapeutics said it will use the proceeds from the sale for working capital and general corporate purposes. Rodman & Renshaw was the placement agent for the offering.
Cell Therapeutics currently has about 616.1 million shares outstanding. The potential dilutive effect of the stock sale on current shareholders' stakes sent Cell Therapeutics' stock down 5 cents, or about 8 percent, to 56 cents in morning trading.