CytRx Corporation (OTCMKTS: CYTR) recently announced that it signed a securities purchase agreement for aggregate gross proceeds worth around $10 million. The agreement is inked with institutional investor that is focused on healthcare primarily.
What’s the agreement about?
As per the agreement, the company has agreed on selling 2 million of its common stock shares priced at $0.88/share. The gross proceeds amounting from this sale would be approximately $1.76 million. This is going to be the registered direct offering. Apart from these shares, additional 8,240 shares belonging to the Series C 10.00% Convertible Preferred Stock will also be sold for $1,000/share. Gross proceeds from this sale will amount to approximately $8.24 million. This is going to be the concurrent private placement.
Meanwhile, the preferred stock is up for conversion into an aggregate of around 9,363,637 common shares priced at $0.88/share.
CytRx Corporation will issue to its investors the option of unregistered preferred investment for five and a half years. This will enable them to purchase an equal to 11,363,637 of the common shares. An additional of around $10 million in gross proceeds could be raised from this option, provided the investors exercise it in full. The company said that net proceeds from this offer are to be put into use for working capital. The deadline for concurrent private placement and registered direct offering is July 15, 2021, i.e., Thursday.
CytRx Corporation is a biopharmaceutical research and development based out of Los Angeles, California. The company specializes in oncology treatments and solutions. Its lead drug is aldoxorubicin, which is available in the modified form of doxorubicin. The drug is pitched as the standard cancer treatment. The company was founded in 1985 and, at present, is valued at $30.38 million.