CytRx Corporation (NASDAQ:CYTR) shares tank 20% to $0.55 in pre-market trading Friday, after the drug maker announced that it has priced a public offering of approximately 30 million shares of its common stock at a purchase price of $0.50 per share, about 26% discount to yesterday’s closing price, for gross proceeds of approximately $15 million. The offering is expected to close on or about May 2, 2017, subject to the satisfaction of customary closing conditions.
After deducting the placement agent’s fees and other estimated offering expenses payable by CytRx, the net proceeds to CytRx are anticipated to be approximately $13.8 million.
CytRx intends to use the net proceeds from the offering for working capital and general corporate purposes, including clinical and regulatory activities, new drug discovery activities, and possible future strategic transactions.
CytRx Corp. operates as a biopharmaceutical research and development company specializing in oncology. It provides clinical development of aldoxorubicin oncology pipeline for the treatment of cancer. The company was founded on February 28, 1985 and is headquartered in Los Angeles, CA.