SEATTLE, Feb. 8 /PRNewswire-FirstCall/ -- Cell Therapeutics, Inc. (CTI) today announced that it has agreed to sell approximately $17.6 million of its 3% Convertible Preferred Stock and warrants in a registered offering to several institutional investors, including existing securities holders. The Preferred Stock will be convertible into 10,547,234 shares of common stock, at an initial conversion price of $1.6725, and the investors will receive warrants to purchase up to 5,273,617 shares of common stock with an exercise price of $1.61 per share, which is equal to the closing bid price of the Company’s common stock as reported on the Nasdaq Global Market on February 7, 2007. The Preferred Stock will have voting rights, and vote on as-converted basis with the common stock.
The offering is expected to close on or about February 13, 2007, subject to certain closing conditions.
Rodman & Renshaw, LLC acted as the exclusive placement agent for the offering.
A shelf registration statement relating to the preferred stock and warrants to be issued in the offering has been filed with the Securities and Exchange Commission and has become effective. A prospectus supplement related to the offering will be filed with the Securities and Exchange Commission. Copies of the prospectus supplement and accompanying base prospectus may be obtained directly from Cell Therapeutics, Inc., 501 Elliott Avenue West, Suite 400, Seattle, Washington 98119. This announcement is neither an offer to sell nor a solicitation of an offer to buy any of our Convertible Preferred Stock or warrants. No offer, solicitation or sale will be made in any jurisdiction in which such offer, solicitation or sale is unlawful.
This press release includes forward-looking statements that involve a number of risks and uncertainties, the outcome of which could materially and/or adversely affect actual future results. The risks and uncertainties include the risk that the above described transaction will not close as a result of the failure to meet closing conditions, investors may breach or withdraw their commitment, and until closed there is no assurance that it will close or what the total amount may be, and other risk factors listed or described from time to time in the Company’s filings with the Securities and Exchange Commission including, without limitation, the Company’s most recent filings on Forms 10-K and 8-K. Except as may be required by Italian law, CTI is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events, or otherwise.
Cell Therapeutics, Inc.
CONTACT: media, Dan Eramian, +1-206-272-4343, or mobile, +1-206-854-1200,or Susan Callahan, +1-206-272-4472, or fax, +1-206-272-4434, ormedia@ctiseattle.com, or www.cticseattle.com/media.htm, or investors, LeahGrant, +1-206-282-7100, or fax, +1-206-272-4434, or invest@ctiseattle.com,or www.cticseattle.com/investors.htm, all of Cell Therapeutics, Inc.
Web site: http://www.cticseattle.com//
