CytRx in $12.4M private placement

Los Angeles, USA-based biopharmaceutical firm CytRx Corp has entered into definitive agreements with a group of institutional investors to raise approximately $13.4 million from the private sale of common stock and warrants for the purchase of common stock, for net proceeds of approximately $12.4 million after deduction of offering expenses.

Under the terms of the financing, CytRx will sell 10.7 million shares of common stock at $1.26 per share and issue warrants to purchase approximately 5.33 million shares of common stock at an exercise price of $1.54 per share. Brokerage firm TR Winston & Company is acting as the lead placement agent on the transaction.

Commenting on the move, CytRx' chief executive, Steven Kriegsman, said that the investment will "help fund our ongoing clinical development, most notably our Phase II clinical trial targeting amyotrophic lateral sclerosis."