CTI BioPharma Corp (NASDAQ:CTIC) announced that it intends to offer and sell, subject to market and other conditions, shares of its Series N-2 Preferred Stock in an underwritten public offering (the “Offering”). Each share of Series N-2 Preferred Stock will have a stated value of $1,000 per share and will be convertible at the option of the holder, at any time after issuance and subject to certain limitations, into shares of common stock.

Subject to the consummation of the Offering, we have agreed to grant to BVF Partners L.P. the right to nominate two members of our board of directors, one of whom must both qualify as an “independent” director, as defined under the applicable rules and regulations of the U.S. Securities and Exchange Commission and The NASDAQ Stock Market LLC, and must not be considered an “affiliate” of BVF Partners.

CTI plans to use the net proceeds from this Offering to support the commercial launch of pacritinib in the U.S. for patients with myelofibrosis, to conduct additional research concerning the possible application of pacritinib in indications outside of myelofibrosis, to advance the commercialization of PIXUVRI and to support the development of tosedostat in registration-directed trials, as well as for general corporate purposes, which may include funding research and development, conducting preclinical and clinical trials, acquiring or in-licensing potential new pipeline candidates, preparing and filing possible new drug applications and general working capital. (Original Source)

Shares of CTI BioPharma are down nearly 5% in after-hours trading. CTIC has a 1-year high of $2.94 and a 1-year low of $1.07. The stock’s 50-day moving average is $1.36 and its 200-day moving average is $1.69.

On the ratings front, CTIC has been the subject of a number of recent research reports. In a report issued on November 9, WallachBeth Capital LLC analyst Bob Ai downgraded CTIC to Hold, with a price target of $1.60, which implies an upside of 36.8% from current levels. Separately, on November 2, Piper Jaffray’s Charles Duncan reiterated a Buy rating on the stock and has a price target of $8.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Bob Ai and Charles Duncan have a total average return of -4.8% and 11.0% respectively. Ai has a success rate of 40.0% and is ranked #2846 out of 3642 analysts, while Duncan has a success rate of 47.4% and is ranked #431.