SEATTLE, Jan. 13 /PRNewswire-FirstCall/ -- Cell Therapeutics, Inc. (the “Company”) today announced that it has entered into an agreement to sell $30 million of shares of its Series 3 Preferred Stock and warrants to purchase shares of its common stock in a registered offering to two institutional investors. Each share of Series 3 Preferred Stock is convertible at the option of the holder, at any time during its existence, into approximately 823 shares of common stock at a conversion price of $1.21375 per share of common stock, for a total of approximately 24,690,000 common shares.
The Company intends to use the net proceeds from the offering for working capital and general corporate purposes, which may include, among other things, paying interest on and/or retiring portions of its outstanding debt, funding research and development, preclinical and clinical trials, the preparation and filing of new drug applications, and general working capital.
The closing of the offering is expected to occur on January 19, 2010, at which time the Company will receive the cash proceeds and deliver the securities.
A shelf registration statement relating to the shares of Series 3 Preferred Stock and warrants issued in the offering (and the shares of common stock issuable upon conversion of the Series 3 Preferred Stock and exercise of the warrants) has been filed with the Securities and Exchange Commission (the “SEC”). The shelf registration statement was automatically effective upon filing with the SEC. A prospectus supplement relating to the offering will be filed with the SEC. Copies of the prospectus supplement and accompanying prospectus may be obtained directly from the Company by contacting the Company at the following address: 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 shares of Series 3 Preferred Stock or warrants. No offer, solicitation or sale will be made in any jurisdiction in which such offer, solicitation or sale is unlawful.
Cell Therapeutics, Inc.
