Date: 2016-12-13
Type of information: Private placement
Company: CytRx Corporation (USA - CA)
Investors: existing institutional investors
Amount: $7.4 million
Funding type: private placement
Planned used: CytRx intends to use the net proceeds from the offering for working capital and general corporate purposes.
Others: * On December 13, 2016, CytRx Corporation announced that it has entered into securities purchase agreements with existing institutional investors to purchase shares of our common stock at a purchase price of $0.42 per share in a registered direct offering with gross proceeds of $8.1 million. To the extent that the purchase of shares of common stock would result in beneficial ownership above 4.99%, an investor may elect to purchase shares of our Series B convertible preferred stock in lieu of common stock. Each share of preferred stock has a conversion price of $0.42 and no dividend rights. The offering is expected to close on or about December 16, 2016, subject to the satisfaction of customary closing conditions. Rodman & Renshaw, a unit of H.C. Wainwright & Co., acted as exclusive placement agent for the offering. After deducting the placement agent's commission and other estimated offering expenses payable by CytRx, the net proceeds to CytRx are anticipated to be approximately $7.4 million. CytRx intends to use the net proceeds from the offering for working capital and general corporate purposes.
Therapeutic area: Cancer - Oncology
