Navigation Links
Cell Therapeutics, Inc. Announces Issuance of 2011 Convertible Senior Notes and Common Stock Warrants to a Single Institutional Investor

SEATTLE, June 12 /PRNewswire-FirstCall/ -- Cell Therapeutics, Inc. (Nasdaq and MTA: CTIC) today announced that a single institutional investor has agreed to purchase, for $23 million, newly issued 15% Convertible Senior Notes due 2011, with an initial conversion price of $0.79 per share, and a warrant to purchase approximately 14.6 million shares of common stock with an exercise price of $0.95 per share.

This transaction constitutes a partial exercise of a previously granted warrant right for the investor to purchase up to $67.5 million of such unit securities, leaving the investor with the right to purchase up to $44.5 million of additional securities in the future. The Company and the investor have amended their original April 30, 2008 agreements to change from 12.5% to 15% the interest rate on the Notes within these units, but the purchase price for the securities, the conversion price of the notes and the exercise price for the warrants remain unchanged.

The new Notes have a $23 million initial principal balance and feature a make-whole provision entitling the holder, upon any conversion of the Notes, to receive the interest payable through scheduled maturity, less any interest paid before conversion. The Company expects to receive net proceeds of approximately $12.65 million from this transaction. The Notes will rank equal in right of payment with all existing and future unsecured senior indebtedness of CTI.

The Company intends to use approximately $11.0 million of the net proceeds from this transaction to retire upon maturity the remaining balance of its 2008 convertible notes due June 15, 2008, together with accrued interest.

This press-release contains forward-looking statements that involve a number of risks and uncertainties, the outcome of which could materially and/or adversely affect future results. The risks and uncertainties include that the investor may choose not to exercise any of the remaining warrants issued in the April 2008 transaction or any of the common stock warrants issued in this June 2008 transaction, and the Company may not achieve the milestones which would enable it to compel further exercise; the April 2008 transaction and this June 2008 transaction will be dilutive to current stockholders; the Company continues to have negative cash flow and a significant amount of debt outstanding and will need to raise additional capital to fund its operations; as well as other risks listed or described from time to time in the Company's most recent filings with the SEC on Forms 10-K, 8-K and 10-Q. Except as required by law, the Company does not intend to update any of the statements in this press release upon further developments.

Media Contact:

Cell Therapeutics, Inc.

Dan Eramian

T: 206.272.4343

C: 206.854.1200

Lindsey Jesch

T : 206.272.4347

F : 206.272.4434


Investors Contact:

Cell Therapeutics, Inc.

Ed Bell

T: 206.272.4345

F: 206.272.4434


SOURCE Cell Therapeutics, Inc.
Copyright©2008 PR Newswire.
All rights reserved

Related biology technology :

1. Systems Medicine (SM), a Subsidiary of Cell Therapeutics, Inc. (CTI), Announces Execution of CRADA with NCI/NIH to Develop Potential Cancer Treatments Targeting the Insulin Growth Factor (IGF) Pathway
2. Cell Therapeutics, Inc. Takes Corrective Actions in Response to Nasdaq Determination
3. ARYx Therapeutics, Inc. Files Registration Statement for Initial Public Offering
4. Nile Therapeutics, Inc. Adds to Executive Management Team
5. Cell Therapeutics, Inc. (CTI) Receives SPA Approval from FDA and Launches Gender-Specific Phase III Trial for Advanced Non-Small Cell Lung Cancer
6. Founder of ILEX Oncology and Triton Biosciences, Richard Love, Joins Board of Directors of Cell Therapeutics, Inc. (CTI)
7. Cell Therapeutics, Inc. (CTI) Announces 2007 Annual Shareholders Meeting Results
8. Northwest Biotherapeutics, Inc. Announces Appointment of Chief Financial Officer
9. Nile Therapeutics, Inc. to Present at Upcoming BIO Investor Forum
10. Hyperion Therapeutics, Inc. Announces Senior Management Team and $15M Financing Event
11. Cell Therapeutics, Inc. (CTI) BIO Presentation to Be Webcast
Post Your Comments:
(Date:11/25/2015)... (PRWEB) , ... November 25, 2015 , ... ... company uBiome, were featured on AngelList early in their initial angel funding process. ... AngelList syndicate for individuals looking to make early stage investments in the microbiome ...
(Date:11/24/2015)... , Nov. 24, 2015 Halozyme Therapeutics, Inc. (NASDAQ: ... Conference in New York on Wednesday, December ... Helen Torley , president and CEO, will provide a corporate overview. ... New York at 1:00 p.m. ET/10:00 a.m. PT . ... investor relations, will provide a corporate overview. --> th ...
(Date:11/24/2015)... 2015 /PRNewswire/ - Aeterna Zentaris Inc. (NASDAQ:  AEZS) (TSX: AEZ) ... of the Toronto Stock Exchange, confirms that as of ... corporate developments that would cause the recent movements in ... --> About Aeterna Zentaris Inc. ... Aeterna Zentaris is a specialty biopharmaceutical company engaged ...
(Date:11/24/2015)... ... November 24, 2015 , ... The Academy of Model Aeronautics (AMA), led by ... known as Multirotor Grand Prix, to represent the First–Person View (FPV) racing community. , ... have embraced this type of racing and several new model aviation pilots have joined ...
Breaking Biology Technology:
(Date:11/18/2015)... , Nov. 18, 2015  As new scientific ... children, doctors and other healthcare providers face challenges in ... families and patients. In addition, as more children continue ... a patient,s adulthood and old age. John ... The Children,s Hospital of Philadelphia (CHOP) . ...
(Date:11/17/2015)... Paris , qui s,est tenu ... Paris , qui s,est tenu du 17 au ... l,innovation biométrique, a inventé le premier scanner couplé, qui ... même surface de balayage. Jusqu,ici, deux scanners étaient nécessaires, ... digitales. Désormais, un seul scanner est en mesure de ...
(Date:11/16/2015)... Calif. , Nov 16, 2015  Synaptics ... of human interface solutions, today announced expansion of ... TouchView ™ touch controller and display driver ... revolution of smartphones. These new TDDI products add ... TD4100 (HD resolution), TD4302 (WQHD resolution), and TD4322 ...
Breaking Biology News(10 mins):