Navigation Links
Cell Therapeutics, Inc. Announces Single Institutional Investor to Purchase Up to $18 Million of Senior Convertible Notes
Date:9/14/2008

Single Institutional Investor Purchases $9MM Convertible Notes

NEW YORK, Sept. 15 /PRNewswire-FirstCall/ -- Cell Therapeutics, Inc. ("CTI" or the "Company") (Nasdaq: CTICD, and MTA: CTIC) today announced that a single institutional investor has agreed to purchase, for $9 million, newly issued 10% Convertible Senior Notes due 2012, with a conversion price of $1.27 per share. The Company has a put right subject to price, volume and other requirements exercisable no later than October 15, 2008 for the same institutional investor to purchase an additional $9 million of 10% Series B Convertible Senior Notes due in 2012.

The new Notes, and the follow-on Notes would similarly have a $9 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 note 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 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 the prospective satisfaction of 50% of any final judgment which may ever be rendered on their pending claims against the Company. If the Company exercises its put right, as to the second $9 million investment, additional similar payments of $150,000 and $1,225,000 would be made and the balance of those claims would be extinguished.

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 will be 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 Elliot 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:

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/press_room

Investors Contact:

Cell Therapeutics, Inc.

Ed Bell

T: 206.272.4345

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 medicine news :

1. Cell Therapeutics, Inc. Announces $12 Million Equity Line of Credit
2. Stiefel Laboratories, Inc. Announces Expiration of Hart-Scott-Rodino Waiting Period Relating to its Proposal to Acquire Barrier Therapeutics, Inc.
3. Zevalin Revenues Lead Cell Therapeutics, Inc.s First Quarter 2008 Financial Results
4. Juvaris BioTherapeutics, Inc. Announces the Appointment of Grant E. Pickering as Chief Executive Officer
5. Cell Therapeutics, Inc. (CTI) Reports Recent Accomplishments and 2007 Fourth Quarter and Year End Financial Results
6. Oracle Healthcare Acquisition Corp. and Precision Therapeutics, Inc. Mutually Terminate Merger Agreement; Oracle Healthcare Acquisition Corp. Cancels Special Meeting
7. Cell Therapeutics, Inc. Announces Issuance of $51.7 Million of New 2012 Convertible Senior Notes
8. Oracle Healthcare Acquisition Corp. and Precision Therapeutics, Inc. Agree in Principle to Amend Merger Agreement to Reduce Consideration by 15%
9. DARA BioSciences, Inc. and Point Therapeutics, Inc. Announce Consummation of Merger
10. Cell Therapeutics, Inc. (CTI) Cuts Net Operating Expenses 35% and Expands Commercial Team to Support Zevalin(R) Sales and Applications Seeking Two Product Approvals in 2009
11. Reckitt Benckiser Completes Acquisition of Adams Respiratory Therapeutics, Inc.
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:5/24/2016)... ... May 24, 2016 , ... ... services today announced a strategic partnership with Five9 (Nasdaq: FIVN), a leading ... one of Avaya’s largest Platinum Business Partners, is a leading provider of ...
(Date:5/24/2016)... ... May 24, 2016 , ... How to Write Error Free Procedures, **Presented by ... , Human error is known to be the major cause of quality and production ... totally eliminated, many human performance problems can be prevented. , How to Write Error ...
(Date:5/24/2016)... Grand Bahama (PRWEB) , ... May 24, 2016 , ... ... pace. Such breakthroughs in adult stem cell therapy technology, protocols and patient results as ... this emerging field to become a more accessible standard of care for patients worldwide. ...
(Date:5/24/2016)... ... May 24, 2016 , ... Physical therapy ... focuses on repairing the musculoskeletal and neuromuscular systems of the human body without ... NYDNRehab began providing treatments for physical therapy in New York, including dynamic ...
(Date:5/24/2016)... , ... May 24, 2016 , ... A newly released ... heavily on their access to trusted resources, both in face-to-face interactions and online. In ... of Color,” researchers concluded that the creative use of mobile digital devices can be ...
Breaking Medicine News(10 mins):
(Date:5/23/2016)... New York , May 23, 2016 ... market report titled, " Exocrine Pancreatic Insufficiency Market - ... 2013 - 2023 ." According to the report, the ... a CAGR of 8.3% from 2015 to 2023 to ... insufficiency (EPI) is a condition characterized by the deficiency ...
(Date:5/23/2016)... 23, 2016 Clarifying Vision - ... Monitoring, and Vision Care What can be ... going to grow at the fastest rates? This ... assessing data, trends, opportunities and prospects. ... Discover the most lucrative areas in the industry and ...
(Date:5/23/2016)... Non-invasive diagnostic test realizes the ... ,Technology to be presented at Yissum’s booth, at IATI-BIOMED ... Company of the Hebrew University of Jerusalem announced ... Aurum Ventures MKI, the technology investment arm of Morris ... approach for early detection of multiple diseases by analyzing ...
Breaking Medicine Technology: