CTI BioPharma Corp (NASDAQ:CTIC) nnounced that it has entered into an agreement with institutional investors to purchase 10 million shares of the Company’s common stock in a registered direct offering conducted without an underwriter or placement agent for gross proceeds to the Company of approximately $15.7 million at a purchase price per share of $1.57 (the “Offering”), equal to the consolidated closing bid price on The NASDAQ Global MarketSM on September 23, 2015. The net proceeds from the Offering, after deducting estimated offering expenses, will be approximately $15.1 million.
CTI BioPharma plans to use the net proceeds from the Offering to support the continued clinical development of its lead product candidate, pacritinib, as a potential new treatment for patients with myelofibrosis, and additional research into new indications outside of myelofibrosis, and for general corporate purposes. The Offering is expected to close on or about September 29, 2015. (Original Source)
In reaction, shares of CTI BioPharma are down 6.17% to $1.52 in after-hours trading. CTIC has a 1-year high of $2.94 and a 1-year low of $1.42. The stock’s 50-day moving average is $1.64 and its 200-day moving average is $1.87.
On the ratings front, CTIC has been the subject of a number of recent research reports. In a report released yesterday, Piper Jaffray analyst Charles Duncan reiterated a Buy rating on CTIC, with a price target of $8, which implies an upside of 393.8% from current levels. Separately, on August 11, Roth Capital’s Debjit Chattopadhyay maintained a Buy rating on the stock and has a price target of $4.50.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Charles Duncan and Debjit Chattopadhyay have a total average return of 9.4% and 24.6% respectively. Duncan has a success rate of 53.8% and is ranked #598 out of 3766 analysts, while Chattopadhyay has a success rate of 63.2% and is ranked #13.