CTI BioPharma has announced the pricing of an underwritten public offering of 22,500 shares of its Series N-3 Preferred Stock, offered at a price to the public of $2,000 per share of Series N-3 Preferred Stock.
The company said that each share of Series N-3 Preferred Stock is convertible at the option of the holder, at any time subject to certain limitations, into shares of our common stock at a conversion price of $3.00 per share of common stock, for a total of approximately 15.0 million shares of common stock.
The gross proceeds to CTI from this Offering are expected to be $45 million, before deducting underwriting discounts and commissions and other estimated offering expenses payable by CTI. CTI plans to use the net proceeds from this Offering to conduct the PAC203 clinical trial, submit a new Marketing Authorization Application for pacritinib to the European Medicines Agency, conduct additional research concerning the possible application of pacritinib in indications outside of myelofibrosis, and complete the PIX306 clinical trial, as well as for general corporate purposes, which may include funding research and development, conducting preclinical and clinical trials, acquiring or in-licensing potential new pipeline candidates, preparing and filing possible new drug applications and general working capital. The Offering is expected to close on or about June 9, 2017, subject to customary closing conditions.
Jefferies LLC is acting as sole book-running manager for the Offering. BTIG, LLC is acting as lead manager for the Offering.