Dallas, Texas 09/16/2013 (Financialstrend) – The Seattle, WA based Cell Therapeutics Inc (NASDAQ:CTIC) announced on September 13 that it has raised $14.8 million from a strategic sale of 1500 shares of its series 18 preferred stock to Quoque Capital LLC and Perceptive Advisors LLC. The company is involved in development and commercialization of cures for cancer and related ailments.
This translates to roughly a stated value of $1000 per share for each of the series 18 preferred stock. CTIC has retained the option to convert these shares into a total of 15 million shares of registered common stock at a conversion price of $1 per share under special circumstances which have not yet been disclosed. These Series 18 stock are eligible to earn the same amount of dividend as paid to shares of common stock. The deal sweetener for Quoque is that their Series 18 shares will get preference over common stock under specific liquidation terms. The involved companies have also specified that the series 18 preferred stock will be devoid of voting rights.
Will plough it back into R & D
From the proceeds of this sale, CTIC is hoping to fast track its phase 3 trial of its drug pacritinib. It is also proposing to use part of the sale proceeds to fund the commercialization of its approved drug PIXUVRI ®(pixantrone) in Europe in addition to expand its research and development.
Impact on the stock market
CTIC shares were trading at $1.33 up 23% from September 12 closing price of $1.11. The stock is trading at 57% lower than its prior 52 weeks high price of $3.14. It is up 37% from its 52 weeks low price of $0.97. At current valuations, its market capitalization is $150 million. Investor’s should note that CTIC has not paid dividends in the past two years .