LOS ANGELES--(BUSINESS WIRE)--CytRx Corporation (NASDAQ:CYTR), a biopharmaceutical company specializing in oncology, today announced that it has entered into a definitive agreement with RXi Pharmaceuticals Corporation (NASDAQ:RXII) under which RXi will buy back 675,000 of the RXi common shares held by CytRx at a price of approximately $5.70 per share, resulting in immediate cash proceeds of approximately $3.8 million to CytRx. The RXi share buyback agreement will be completed in conjunction with a $16.2 million registered direct offering of RXi shares and warrants, which was announced today by RXi. The agreement with CytRx also allows for CytRx’s possible sale to RXi of up to an additional 135,000 shares of CytRx’s RXi shares to the extent warrants sold by RXi in its registered direct offering are exercised. The sale price of any additional CytRx shares would be equal to the $6.00 exercise price per share of the RXi warrants. Upon completion of the buyback and RXi’s registered direct offering, CytRx will continue to own approximately 5.1 million RXi shares, or 28% of RXi’s outstanding shares following these transactions.
