Navigation Links
Cell Therapeutics, Inc. Announces Single Institutional Investor Purchases $24.7 Million of Senior Convertible Notes

SEATTLE, Oct. 22 /PRNewswire-FirstCall/ -- Cell Therapeutics, Inc. ("CTI" or the "Company") (Nasdaq and MTA: CTIC) today announced that a single institutional investor shall purchase, for $24.7 million, newly issued 9.66% Convertible Senior Notes due 2011, with a conversion price of $0.38 per share.

The new Notes would have a $24.7 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 has also agreed to repurchase from the investor an aggregate amount of approximately $18.2 million of outstanding 15% Convertible Senior Notes that were issued in June 2008. For such repurchase, the Company will use $10 million of the proceeds from the offering, plus funds to be released to the Company from the escrow account that was established to pay the make-whole and interest payments on the 15% Convertible Senior Notes. Warrants to purchase approximately 1.15 million shares of common stock which were issued in connection with the approximately $18.2 million of repurchased notes are also being surrendered to the Company and will be cancelled. The Company expects to receive net proceeds of approximately $14.7 million from the new Notes (before payment of fees and expenses), after the repurchase of the June 2008 notes and prior to depositing approximately $7.2 million in escrow for the make-whole provision. The new Notes will rank equal in right of payment with all existing and future unsecured senior indebtedness of the Company.

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 new Convertible Senior 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 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.

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 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


Investors Contact:

Ed Bell

T: 206.272.4345

Lindsey Jesch Logan

T : 206.272.4347

F : 206.272.4434


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

Related biology technology :

1. Cell Therapeutics, Inc. (CTI) to Present at Three Upcoming Investor Conferences
2. Cell Therapeutics, Inc. Announces Single Institutional Investor Purchases $14.2 Million of Senior Convertible Notes
3. Intarcia Therapeutics, Inc. Announces Appointment of Kenneth Luskey, M.D. as Vice President, Clinical Research
4. Cell Therapeutics, Inc. Announces Reverse Stock Split
5. Cell Therapeutics, Inc.s Second Quarter 2008 Financial Results
6. Nile Therapeutics, Inc. Reports 2008 Second Quarter Financial Results
7. Zenobia Therapeutics, Inc. Receives Michael J. Fox Foundation for Parkinsons Research Award for Work on PD-implicated Protein LRRK2
8. Cell Therapeutics, Inc. Announces Single Institutional Investor to Purchase $44.5 Million of Units Consisting of Senior Convertible Notes and Warrants
9. Zenobia Therapeutics, Inc. Begins Operations as a Fragment-Based Lead Discovery Company
10. Shareholders Approve All Matters Proposed by Cell Therapeutics, Inc. at Special Meeting in Lieu of Annual Meeting of Shareholders
11. Cell Therapeutics, Inc. Repays $11.0 million Balance of 2008 Convertible Debt
Post Your Comments:
(Date:11/24/2015)... Telbec/ - ProMetic Life Sciences Inc. (TSX: PLI) (OTCQX: PFSCF) ... Laurin , President and Chief Executive Officer of ProMetic, will ... 27 th Annual Healthcare Conference to be held at ... st , at 8.50am (ET) and ProMetic,s management ... The presentation will be available live via a webcast accessible ...
(Date:11/24/2015)... Va. , Nov. 24, 2015 ... focused on discovering drugs for metabolic disorders, announced ... to its Board of Directors (BOD). Mr. ... officer of Human Genome Sciences (HGS), and also ... Organization. Jim Powers , Chairman and ...
(Date:11/24/2015)... and NEW YORK , November 24, ... investment by Bristol-Myers Squibb in a European ... Bristol-Myers Squibb Company in which the companies will work ... immuno-oncology and other areas of unmet medical need. The collaboration ... LSP 5, the latest LSP fund. This is the first ...
(Date:11/24/2015)... -- According to two new studies, fewer men are having ... many doctors, scientists, and public health experts have been pushing ... tests being done, will there be more men dying of ... "Despite the efforts made in regards to early detection ... cause of death in men, killing approximately 27,500 men this ...
Breaking Biology Technology:
(Date:11/17/2015)... , Nov. 17, 2015  Vigilant Solutions announces today ... its Board of Directors. --> ... recently retiring from the partnership at TPG Capital, one ... with over $140 Billion in revenue.  He founded and ... all the TPG companies, from 1997 to 2013.  In ...
(Date:11/12/2015)... , Nov. 11, 2015   Growing need ... analytical tools has been paving the way for ... determination of discrete analytes in clinical, agricultural, environmental, ... being predominantly used in medical applications, however, their ... sectors due to continuous emphasis on improving product ...
(Date:11/9/2015)... 2015  Synaptics Inc. (NASDAQ: SYNA ), the ... entry into the automotive market with a comprehensive and ... of consumer electronics human interface innovation. Synaptics, industry-leading touch ... the automotive industry and will be implemented in numerous ... , Japan , and ...
Breaking Biology News(10 mins):