Cell Therapeutics Inc (NASDAQ:CTIC) stock on the rise


Dallas, Texas 09/30/2013 (Financialstrend) – Cell Therapeutics Inc (NASDAQ:CTIC) on September 19, had announced that it was closing its sale of 15,000 shares of its Series 18 preferred stock and raised close to $14.8 million in proceeds. The bio tech firm plans to use majority of the proceeds to fund two of its most important projects. The first project is the completion of phase three trials for its target drug of “pacritinib”. The second project is to effectively take its approved drug PIXUVRI® (pixantrone) into the European markets.

Cell Therapeutics had managed to sell its Series 18 preferential shares to a consortium of Quogue Capital and a unit of Perceptive Advisors. The firm went through the transaction without an underwriter or a placement agency to conclude this deal.

On September 18, 2013, the 15,000 shares of the preferred stock were issued to the investors. Each preferred stock has a notational value of $1000 per share and is convertible to common stock if the investors so decide even before its default conversion date. In fact, the investing consortium opted to convert its 15000 preferred shares into 15 million common shares on September 18. This block of shares will attract same dividends as compared to other common stock. These will have a preference during any future liquidation process and will not entitle any voting rights.

The biopharmaceutical company is in the development and commercialization phase of target drugs to cure oncology related ailments.

The stock had risen by close to 6.5% on September 18 on the back of this announcement. Over the past 10 days the share price has been on the move. It has gained over 23.7% in the past 5 days of trading and by over 54% in the past month. This firm has a market capitalization of $179 million with 114 employees.