Cell Therapeutics makes $37.2M offering

Seattle, USA-based Cell Therapeutics has entered into agreements to sell around $37.2 million of its 3% convertible preferred stock and warrants in a registered offering to several institutional investors, including existing securities holders. CT will sell series B convertible preferred stock and warrants to investors at the negotiated price of $1,000 per share. The preferred shares will be convertible into common stock beginning on April 16, at a conversion price of $1.6825 per share ($6.73 following the one-for-four reverse stock split effective on April 15).

Buyers will also receive warrants to purchase common stock in an amount equal to 50% of their total investment amount divided by $1.6825 ($6.73 post-split), which will have an exercise price of $1.62 per share ($6.48 post-split), which is equal to the closing bid price of the company's common stock as reported on the Nasdaq Global Market on April 10.

The offering is expected to close on April 16, subject to certain closing conditions.