In a public financing undertaking, Cell Therapeutics announced offering of 60,000 shares of its Series 17 Preferred Stock, at a price to the public of $1,000 per share of Series 17 Preferred Stock .
Each share of Series 17 Preferred Stock is convertible at the option of the holder, at any time, into approximately 714 shares of common stock at a conversion price of $1.40 per share of common stock, for a total of approximately 42.9 million shares of common stock.
The gross proceeds to CTI from this financing offering are expected to be $60 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 $55.6 million.
The financing offering is expected to close on October 11, 2012, subject to customary closing conditions.
CTI plans to use the net proceeds from this Offering to support the launch of Pixuvri (pixantrone) in Europe and to commence phase III trials of pacritinib 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, the acquisition of complementary businesses, technologies or products and general working capital.
Jefferies & Company, Inc. is acting as sole book-running manager for the Offering. Roth Capital Partners, LLC and ThinkEquity LLC are acting as co-managers for the Offering.
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