CYTR - Update- CytRx Enters Into Agreement for $13.4 Million Private Placement
Friday March 3, 8:30 am ET
LOS ANGELES, March 3 /PRNewswire-FirstCall/ -- CytRx Corporation (Nasdaq: CYTR - News), a biopharmaceutical company engaged in the development and commercialization of human therapeutics, today announced that it has entered into definitive agreements with a group of institutional investors to raise approximately $13.4 million from the private sale of common stock and warrants for the purchase of common stock, with net proceeds to CytRx of approximately $12.4 million after deduction of offering expenses.
Under the terms of the financing, CytRx will sell 10.65 million shares of common stock at $1.26 per share and issue warrants to purchase approximately 5.33 million shares of common stock at an exercise price of $1.54 per share.
Responding To Message #175 from Rutgers at 2/3/2006 6:51:50 PM
Trade Alert and EDGR comment - took a starter position in CYTR today ...
~ $1.20. Stock has trended up recently and it appears that they may have one or more solutions for obesity and diabetes. Having said that, this was near the upper edge of the trend, which is not the best time to initiate a position. Indeed, my custom min.- req't - limit- order filled in a nano-second, which is usually a very good indication of a stock that is about to head down. Of course, I would like to purchase more, so, like EDGR, it would be fine with me if this thing headed back towards the bottom of its recent range. Speaking of EDGR, that was some week after they announced the deal with Donnelly. Of course, it sure looks like it is ripe for some profit taking although the OBV has been excellent so far this year.
HT: Allan and Ilene for the DD on CYTR
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