CytRx Corporation (NASDAQ:CYTR), a biopharmaceutical research and development company specializing in oncology, today announced the pricing of its previously announced underwritten public offering. CytRx is offering 9,100,000 shares of common stock at a public offering price of $2.75 per share for gross proceeds of approximately $25.0 million, prior to deducting underwriting discounts and commissions and estimated offering expenses payable by CytRx.
CytRx intends to use the net proceeds of the offering to fund clinical trials of its drug candidate aldoxorubicin and its drug discovery activities and for general corporate purposes, which may include pre-commercialization activities relating to aldoxorubicin, working capital, capital expenditures, research and development and other commercial expenditures. CytRx has granted the underwriters a 30-day option to purchase up to an additional 1,365,000 shares of common stock. The offering is expected to close on or about July 24, 2015, subject to the satisfaction of customary closing conditions.
Jefferies LLC is the sole book-running manager for the offering. Oppenheimer & Co. Inc., Aegis Capital Corp., FBR Capital Markets & Co., and H.C. Wainwright & Co., LLC are acting as co-lead managers for the offering. (Original Source)
Shares of Cytrx closed yesterday at $3.80. CYTR has a 1-year high of $5.42 and a 1-year low of $2.08. The stock’s 50-day moving average is $3.90 and its 200-day moving average is $3.66.
On the ratings front, Cytrx has been the subject of a number of recent research reports. In a report issued on May 22, Imperial analyst Ashok Kumar maintained a Buy rating on CYTR, with a price target of $6, which represents a potential upside of 57.9% from where the stock is currently trading. Separately, on May 5, Oppenheimer’s Christopher Marai reiterated a Buy rating on the stock and has a price target of $10.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Ashok Kumar and Christopher Marai have a total average return of 11.8% and 54.7% respectively. Kumar has a success rate of 58.5% and is ranked #405 out of 3711 analysts, while Marai has a success rate of 76.8% and is ranked #4.
CytRx Corp is a biopharmaceutical research and development company specializing in oncology. Its oncology pipeline includes three clinical-stage drug candidates in various stages of development: Aldoxorubicin, Tamibarotene, and Bafetinib.