Stock Update (NASDAQ:CYTR): CytRx Corporation Announces Pricing of $20 Million Public Offering of Common Stock and Warrants


CytRx Corporation (NASDAQ:CYTR), a biopharmaceutical research and development company specializing in oncology, today announced that it has priced a registered public offering of an aggregate of approximately 28.6 million shares of common stock at a price to the public of $0.70 per share.  Investors will also receive warrants to purchase up to an aggregate of approximately 28.6 million shares of common stock with an exercise price of $0.70 per share.  The warrants are immediately exercisable and have a term of exercise of 12 months.  The offering is expected to close on or about July 20, 2016, subject to the satisfaction of customary closing conditions.

Rodman & Renshaw, a unit of H.C. Wainwright & Co., acted as sole book runner for the offering.

The aggregate gross proceeds of the offering are anticipated to be approximately $20 million.  After deducting the placement agent’s commission and other estimated offering expenses payable by CytRx, the net proceeds to CytRxare anticipated to be approximately $18.3 million.  CytRx intends to use the net proceeds from the offering for working capital and general corporate purposes. (Original Source)

Shares of Cytrx closed yesterday at $0.90, down $0.08 or -8.27%. CYTR has a 1-year high of $4.13 and a 1-year low of $0.74. The stock’s 50-day moving average is $2.31 and its 200-day moving average is $2.49.

On the ratings front, Cytrx has been the subject of a number of recent research reports. In a report issued on July 12, FBR analyst Christopher James reiterated a Buy rating on CYTR, with a price target of $3, which implies an upside of 233.7% from current levels. Separately, on the same day, Jefferies Co.’s Chris Howerton reiterated a Hold rating on the stock and has a price target of $0.75.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Christopher James and Chris Howerton have a total average return of -14.9% and 4.3% respectively. James has a success rate of 35.0% and is ranked #3931 out of 4060 analysts, while Howerton has a success rate of 55.3% and is ranked #1221.

Overall, 2 research analysts have assigned a Hold rating and 2 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $5.38 which is 498.4% above where the stock closed yesterday.

CytRx Corp. operates as a biopharmaceutical research and development company specializing in oncology. The company on the clinical development of aldoxorubicin oncology pipeline for the treatment of cancer.

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