Navigation Links
Cell Therapeutics, Inc. Announces Single Institutional Investor Purchases $14.2 Million of Senior Convertible Notes
Date:9/28/2008

SEATTLE, Sept. 29 /PRNewswire-FirstCall/ -- Cell Therapeutics, Inc. ("CTI" or the "Company") (Nasdaq: CTICD and MTA: CTIC) today announced that a single institutional investor shall purchase, for $14.2 million, newly issued 15.5% Convertible Senior Notes due 2012, with a conversion price of $1.27 per share. The transaction is the result of an amendment of a September 15, 2008 agreement (as amended on September 26, 2008) under which the investor had purchased $9 million of senior notes and given CTI an option to require the investor to purchase additional notes.

The new Notes would have a $14.2 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 $5.4 million from the Notes (before payment of fees and expenses), after depositing amounts in escrow for the make-whole provision. The Notes will rank equal in right of payment with all existing and future unsecured senior indebtedness of the Company.

Pursuant to the agreement, CTI shall make a payment in the amount of $150,000 as an inducement for the investor and its affiliates to convert 1,000 shares of Series C Preferred Stock owned by the investor and its affiliates into Common Stock of the Company pursuant to the provisions of the Company's articles of incorporation. In connection with this securities transaction, CTI shall also make a payment to the investor and its affiliates in the amount of $1,225,000 in exchange for release of all pending claims against the Company, and shall enter into a mutual general release.

Rodman & Renshaw, LLC, a subsidiary of Rodman & Renshaw Capital Group, Inc. (Nasdaq: RODM), acted as the exclusive placement agent for the transaction.

A prospectus supplement relating to the Convertible Notes to be issued in the offering has been 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 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. This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful. The Company continues to have substantial amount of debt outstanding and the quarterly interest expense associated with the debt is significant; the Company's operating expenses continue to exceed its net revenues and the Company will continue to need to raise capital to fund its operating expenses; 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:

Dan Eramian

T: 206.272.4343

C: 206.854.1200

E: media@ctiseattle.com

http://www.CellTherapeutics.com/press_room

Investors Contact:

Ed Bell

T: 206.272.4345

Lindsey Jesch

T : 206.272.4347

F : 206.272.4434

E: invest@ctiseattle.com

http://www.CellTherapeutics.com/investors


'/>"/>
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 $15M Financing Event
11. Cell Therapeutics, Inc. (CTI) BIO Presentation to Be Webcast
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:5/2/2016)... ... May 02, 2016 , ... Meister Media Worldwide ... fresh look and added functionality give the agricultural world a taste of Meister ... shift in agriculture – from precision farming via satellites and Unmanned Aerial Vehicles ...
(Date:4/29/2016)... ... 2016 , ... The MIT bioLogic design team has won multiple A' ... properties can be applied to fabric and formed into living interfaces between body and ... humidity change. The team harvested Natto cells and applied them to fabric with custom ...
(Date:4/29/2016)... 29, 2016 According to ... Research "Separation Systems for Commercial Biotechnology Market - ... Forecast 2015 - 2023", the separation systems for ... Mn in 2014 and is projected to expand ... 2023 to reach US$ 19,227.8 Mn in 2023. ...
(Date:4/29/2016)... ... April 29, 2016 , ... Intelligent Implant Systems announced today that the two-level ... sale in the United States. These components expand the capabilities of the system ... sales beginning in October of 2015, the company has seen significant sales growth in ...
Breaking Biology Technology:
(Date:3/17/2016)... LONDON , March 17, 2016 ... market intelligence, forecasts the global biometrics market will ... an impressive 118% increase from 2015. Consumer electronics, ... with embedded fingerprint sensors anticipated to reach two ... Dimitrios Pavlakis , Research Analyst ...
(Date:3/11/2016)... -- http://www.apimages.com ) - --> http://www.apimages.com ) ... AP Images ( http://www.apimages.com ) - Germany ... the new refugee identity cards. DERMALOG will be unveiling this device, ... Hanover next week.   --> Germany ... produce the new refugee identity cards. DERMALOG will be unveiling this ...
(Date:3/9/2016)... Germany , March 9, 2016 ... country,s government identified that more than 23,000 public service ... or had been receiving their salary unlawfully.    ... African country,s government identified that more than 23,000 public ... name or had been receiving their salary unlawfully.    ...
Breaking Biology News(10 mins):