Navigation Links
Cell Therapeutics, Inc. Announces Single Institutional Investor to Purchase $44.5 Million of Units Consisting of Senior Convertible Notes and Warrants
Date:7/23/2008

Investor Also Agrees to Increase Original Warrant Amount by an Additional

$44.5 million

SEATTLE, July 24 /PRNewswire-FirstCall/ -- Cell Therapeutics, Inc. (Nasdaq and MTA: CTIC) today announced that a single institutional investor has agreed to purchase, for $44.5 million, newly issued 18.33% Convertible Senior Notes due 2011, with a conversion price of $0.79 per share, and a warrant to purchase approximately 28.2 million shares of common stock with an exercise price of $0.79 per share. Of such amount, $22.25 million will be funded this week and the remaining $22.25 million must be funded prior to August 25, 2008. Additionally, the agreement provides for the further amendment of the original warrant right which would be exercisable for an additional $44.5 million of units to the investor under the same terms if both parties agree to do so and subject to additional filings with the Nasdaq Stock Market.

This transaction constitutes an exercise of a previously granted warrant right for the investor to purchase up to $67.5 million of such unit securities. The Company and the investor have amended their original April 2008 agreements and subsequent amendment to change from 15.0% to 18.33% the interest rate on the Notes within these units being issued in July and August, and to reduce from $0.95 to $0.79 the per share exercise price of all common stock warrants arising from the April 2008 agreements and subsequent exercises, but the purchase price for the securities and the conversion price of the notes remain unchanged. The Company has also agreed to repurchase from the investor an aggregate amount of $17.5 million of outstanding 13.5% Convertible Senior Notes, of which half are being repurchased in connection with this July transaction and the other half will be repurchased in connection with the subsequent exercise prior to August 25, 2008. Warrants to purchase approximately 11 million shares of common stock which were issued in connection with the $17.5 million of notes are also being surrendered to the Company and will be cancelled.

The new Notes have a $44.5 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 $21.8 million from the portion of the notes funded this week, prior to depositing amounts in escrow for the make-whole provision and the repurchase of prior notes and warrants as described above, and a similar amount prior to August 25, 2008. The 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.

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 might, if it breaches its agreement, not fund the remaining $22.25 million prior to August 25, 2008; the investor may choose not to purchase any of the additional warrant securities for $44.5 million or at all; the Company may not receive the necessary approvals to sell such additional securities on these terms; these transactions will be highly dilutive to our current stockholders; the Company continues to have a 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:

Cell Therapeutics, Inc.

Dan Eramian

T: 206.272.4343

C: 206.854.1200

Lindsey Jesch

T : 206.272.4347

F : 206.272.4434

E: media@ctiseattle.com

http://www.CellTherapeutics.com/media.htm

Investors Contact:

Cell Therapeutics, Inc.

Ed Bell

T: 206.272.4345

F: 206.272.4434

E: invest@ctiseattle.com

http://www.cticseattle.com/investors.htm


'/>"/>
SOURCE Cell Therapeutics, Inc.
Copyright©2008 PR Newswire.
All rights reserved

Related biology technology :

1. Zenobia Therapeutics, Inc. Begins Operations as a Fragment-Based Lead Discovery Company
2. Shareholders Approve All Matters Proposed by Cell Therapeutics, Inc. at Special Meeting in Lieu of Annual Meeting of Shareholders
3. Cell Therapeutics, Inc. Repays $11.0 million Balance of 2008 Convertible Debt
4. Cell Therapeutics, Inc. Special Meeting in Lieu of Annual Meeting of Shareholders Scheduled for Thursday, June 19, 2008
5. Cell Therapeutics, Inc. Announces Issuance of 2011 Convertible Senior Notes and Common Stock Warrants to a Single Institutional Investor
6. Anesiva and Transcription Factor Therapeutics, Inc. Announce Licensing Agreement for Development and Commercialization of NF-kappa B Clinical Program
7. Cell Therapeutics, Inc. (CTI) to Present at Rodman & Renshaw 5th Annual Global Healthcare Conference
8. Vista Partners Initiates Coverage on Synvista Therapeutics, Inc. (AMEX: SYI)
9. Cell Therapeutics, Inc. (CTI) to Report 2008 First Quarter and Financial Results on May 8
10. Cell Therapeutics, Inc. Sells $64.5 million Units Consisting of Preferred Stock, New 2014 Convertible Senior Notes and Warrants to a Single Institutional Investor
11. CardioVascular BioTherapeutics, Inc. Funding Wound Healing Trial with R&D Partnership
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:6/23/2016)... ... 2016 , ... Charm Sciences, Inc. is pleased to announce ... Research Institute approval 061601. , “This is another AOAC-RI approval of the Peel ... President of Regulatory and Industrial Affairs. “The Peel Plate methods perform comparably to ...
(Date:6/23/2016)... ON (PRWEB) , ... June 23, 2016 , ... STACS ... DNA Technical Leader at the Arkansas State Crime Laboratory, has joined STACS DNA as ... the STACS DNA team,” said Jocelyn Tremblay, President and COO of STACS DNA. “In ...
(Date:6/23/2016)... On Wednesday, June 22, 2016, the NASDAQ Composite ... Jones Industrial Average edged 0.27% lower to finish at 17,780.83; ... has initiated coverage on the following equities: Infinity Pharmaceuticals Inc. ... NKTR ), Aralez Pharmaceuticals Inc. (NASDAQ: ARLZ ), ... more about these stocks by accessing their free trade alerts ...
(Date:6/23/2016)... , June 23, 2016 ... market research report to its pharmaceuticals section with ... product details and much more. Complete ... across 151 pages, profiling 15 companies and supported ... at http://www.reportsnreports.com/reports/601420-global-cell-culture-media-industry-2016-market-research-report.html . The ...
Breaking Biology Technology:
(Date:5/20/2016)...  VoiceIt is excited to announce its new ... By working together, VoiceIt and VoicePass will offer ... take slightly different approaches to voice biometrics, collaboration ... usability. Both ... "This marketing and technology partnership allows ...
(Date:5/9/2016)... , UAE, May 9, 2016 ... it comes to expanding freedom for high net worth ... Even in today,s globally connected world, there is still ... system could ever duplicate sealing your deal with a ... second passports by taking advantage of citizenship via investment ...
(Date:4/28/2016)... , April 28, 2016 First quarter ... (139.9), up 966% compared with the first quarter of 2015 ... totaled SEK 589.1 M (loss: 18.8) and the operating margin was ... (loss: 0.32) Cash flow from operations was SEK 249.9 ... 2016 revenue guidance is unchanged, SEK 7,000-8,500 M. The ...
Breaking Biology News(10 mins):