Stock Update (NASDAQ:CTIC): CTI BioPharma Corp Announces Proposed Public Offering of Convertible Preferred Stock
CTI BioPharma Corp (NASDAQ:CTIC) announced that it intends to offer and sell, subject to market and other conditions, shares of its Series N-1 Preferred Stock in an underwritten public offering (the “Offering”). Each share of Series N-1 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, into shares of common stock prior to the automatic conversion of such shares in certain circumstances.
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 9.52% to $1.52 in after-hours trading. CTIC has a 1-year high of $2.94 and a 1-year low of $1.38. The stock’s 50-day moving average is $1.58 and its 200-day moving average is $1.80.
On the ratings front, CTI BioPharma has been the subject of a number of recent research reports. In a report issued on September 23, Piper Jaffray analyst Charles Duncan reiterated a Buy rating on CTIC, with a price target of $8, which implies an upside of 376.2% 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 7.8% and 7.2% respectively. Duncan has a success rate of 43.1% and is ranked #762 out of 3801 analysts, while Chattopadhyay has a success rate of 45.9% and is ranked #485.