Cytori Therapeutics Inc (NASDAQ:CYTX) announced the pricing of a registered direct public offering of Units, with each Unit consisting of one share of our common stock and one warrant to purchase one share of common stock. The sale of the Units is expected to take place in two separate closings. In the first closing (the Initial Closing), which we expect to occur on or about May 8, 2015, the Company will sell Units having gross proceeds of $19.4 million. The purchase price for each Unit to be sold in the Initial Closing will be $0.77. The strike price of each warrant will be$1.02.
Subject to receipt of any required stockholder approval pursuant to the rules of the Nasdaq Stock Market and the restructure of our outstanding debt under our loan agreement, we expect to complete a second closing (the Second Closing) in which we intend to sell additional Units having gross proceeds of $5.6 million.
As of March 31, 2015, we had cash and cash equivalents of approximately $13.2 million and debt principal of approximately$25.0 million. Upon completing the offering, the company will have raised $25.7 million in net cash proceeds since March 31, 2015 from the issuance of shares under its ATM program, warrant exercises, and the net proceeds from the Initial Closing of this transaction. Following the Initial Closing, we intend to use a portion of the proceeds to refinance our existing debt to provide that our outstanding debt under our Loan Agreement does not exceed $18.0 million. The Company also intends to use the net proceeds of the offering for general corporate purposes, including working capital, capital expenditures, research and development and debt service.
Mizuho Securities USA Inc. acted as the sole lead placement agent, with Roth Capital Partners, Maxim Group LLC, and WBB Securities, LLC as additional placement agents on the transaction. The securities are being offered by means of a prospectus supplement and accompanying prospectus, forming a part of the effective registration statement, a copy of which may be obtained, when available, at the website of the SEC at http://www.sec.gov. Copies of the prospectus supplement and accompanying prospectus may also be obtained from the offices of Mizuho Securities USA Inc. 320 Park Avenue, 12th Floor, New York, NY 10022-6815, Attn: Equity Capital Markets (212) 205-7600.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction. (Original Source)
Shares of Cytori closed yesterday at $0.9 . CYTX has a 1-year high of $2.55 and a 1-year low of $0.36. The stock’s 50-day moving average is $1.13 and its 200-day moving average is $0.71.
On the ratings front, Cytori has been the subject of a number of recent research reports. In a report issued on April 23, Maxim Group analyst Jason Kolbert reiterated a Buy rating on CYTX, with a price target of $7, which represents a potential upside of 677.8% from where the stock is currently trading. Separately, on April 6, Roth Capital’s Joseph Pantginis maintained a Buy rating on the stock and has a price target of $6.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Jason Kolbert and Joseph Pantginis have a total average return of 3.7% and 6.4% respectively. Kolbert has a success rate of 41.9% and is ranked #982 out of 3589 analysts, while Pantginis has a success rate of 49.0% and is ranked #432.
Cytori Therapeutics Inc is engaged in the development of novel treatments for cardiovascular disease and soft tissue injuries and burns.