Biopharmaceutical firm Cell Therapeutics Inc. (NASDAQ: CTIC) announced a secondary offering this morning of 60,000 shares of its Series 17 preferred stock at a price of $1,000.00 per share:
Each share of Series 17 Preferred Stock is convertible at the option of the holder, at any time, into approximately 714 shares of common stock at a conversion price of $1.40 per share of common stock, for a total of approximately 42.9 million shares of common stock.
The offering is being underwritten by Jefferies & Company Inc.
According to the announcement, the proceeds to Cell Therapeutics are expected to total $55.6 million and the company plans to use the funds to support the launch of its anticancer pixantrone drug in Europe and to begin phase III trials of another cancer drug, pacritinib.
Shareholders have driven the stock price into the ground this morning. Shares closed at $2.04 last night and are trading in the premarket this morning at $1.46, down 28%. The current 52-week range is $1.77 to $8.25.