Cytogen raises $20M in private placing

New Jersey, USA-based Cytogen say that it has entered into purchase agreements with certain institutional investors for the sale of 7,092,203 shares of its common stock and 3,546,108 warrants to purchase shares at a price of $2.82 per unit, through a private placement. The warrants have a term of five years and an exercise price of $3.32 per share. The transaction is expected to provide gross proceeds of around $20.0 million to Cytogen before deducting costs associated with the offering.

The company expects to use the proceeds to support the commercial launch of Caphosol (a prescription medical device for the treatment of oral mucositis and dry mouth), which it in-licensed in October, advance its clinical development programs, pursue additional in-licensing opportunities, and other general corporate purposes. The parties expect to close the transaction as soon as possible.