Date: 2014-11-07
Type of information: Private placement
Company: CTI BioPharma - previously known as Cell Therapeutics (USA - WA)
Investors:
Amount: $35 million
Funding type: private placement
Planned used: CTI plans to use the net proceeds from this Offering to advance the commercialization of Pixuvri® (pixantrone), accelerate the pre-commercial activities for pacritinib, expand the number of investigator-sponsored trials for pacritinib to diseases other than myelofibrosis and acute myeloid leukemia and support the advancement of tosedostat toward registration-directed trials, as well as for general corporate purposes, which may include, among other things, funding research and development, preclinical and clinical trials, the preparation and filing of new drug applications and general working capital.
Others: * On November 7, 2014, CTI BioPharma announced the pricing of an underwritten public offering of 35,000 shares of its Series 21 Preferred Stock, offered at a price to the public of $1,000 per share of Series 21 Preferred Stock (the \"Offering\"). Each share of Series 21 Preferred Stock is convertible at the option of the holder, at any time, into 500 shares of common stock at a conversion price of $2.00 per share of common stock, for a total of 17.5 million shares of common stock. The shares of Series 21 Preferred Stock will automatically convert into shares of common stock in certain circumstances. Shares of the Series 21 Preferred Stock will receive dividends in the same amount as any dividends declared and paid on shares of common stock, but would be entitled to a liquidation preference over the common stock in certain liquidation events. The Series 21 Preferred Stock will have no voting rights on general corporate matters. The gross proceeds to CTI from this Offering are expected to be $35 million, before deducting underwriting discounts and commissions and other estimated offering expenses payable by CTI. CTI estimates that its net proceeds from the Offering after deducting commission and expenses and other estimated offering expenses payable by CTI will be approximately $32.8 million. The Offering is expected to close on or about November 13, 2014, subject to customary closing conditions.
Piper Jaffray & Co. is acting as sole book-running manager for the Offering. Roth Capital Partners, Ladenburg Thalmann & Co. Inc. and Janney Montgomery Scott LLC are acting as co-managers for the Offering.
* On November 6, 2014, CTI BioPharma announced that it intends to offer and sell, subject to market and other conditions, shares of its Series 21 Preferred Stock in an underwritten public offering. Each share of Series 21 Preferred Stock will have a stated value of $1,000 per share and will be convertible at the option of the holder, at any time after issuance, into shares of common stock prior to the automatic conversion of such shares in certain circumstances. Shares of the Series 21 Preferred Stock will receive dividends in the same amount as any dividends declared and paid on shares of common stock, but would be entitled to a liquidation preference over the common stock in certain liquidation events. The Series 21 Preferred Stock will have no voting rights on general corporate matters.
Therapeutic area: Cancer - Oncology
