Cytori Therapeutics Inc (CYTX) Tumbles To 52-Week Low On Back Of Share Dilution


Cytori Therapeutics Inc (NASDAQ:CYTX) announced the pricing of its underwritten public offering of 8,600,000 of its common shares at a price to the public of $1.10 per share, a 36% discount to yesterday’s closing price. Gross proceeds to Cytori from the offering are expected to be approximately $9.5 million, before deducting underwriting discounts and commissions and estimated offering expenses.

Cytori shares reacted to the news, tumbling nearly 35% to $1.13 in Tuesday’s trading session. CYTX has a 1-year high of $5.44 and a 1-year low of $1.07. The stock’s 50-day moving average is $1.62 and its 200-day moving average is $1.68.

Cytori currently intends to use the net proceeds of the offering for working capital and general corporate purposes, including funding of the HABEO and ATI-0918 development programs. Cytori has granted the underwriter a 45-day option to purchase up to 15% of additional shares of its common stock. The offering is expected to close on or about April 17, 2017, subject to satisfaction of customary closing conditions.

On the ratings front, Cytori has been the subject of a number of recent research reports. In a report issued on March 24, Maxim analyst Jason Kolbert reiterated a Buy rating on CYTX, with a price target of $10.00, which implies an upside of 793% from current levels. Separately, on December 16, B. Riley’s Andrew D’silva initiated coverage with a Buy rating on the stock and has a price target of $5.75.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Jason Kolbert and Andrew D’silva have a yearly average loss of 10.7% and 2.6% respectively. Kolbert has a success rate of 32% and is ranked #4503 out of 4560 analysts, while D’silva has a success rate of 60% and is ranked #3377.

Cytori Therapeutics, Inc. is a late stage cell therapy company. that engages in the developement of autologous cell therapies from adipose tissue, using its proprietary technology, to treat a variety of medical conditions. Data from preclinical studies and clinical trials suggest that Cytori Cell Therapy acts principally by improving blood flow, modulating the immune system and facilitating wound repair.

 

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