By Stephanie N. Rotondo
Seattle, July 21 – Cyclacel Pharmaceuticals Inc. is offering $8,872,000 of class B units holding one share of series A convertible preferred stock and warrants to purchase common stock, the company said in a prospectus on Friday.
Ladenburg Thalmann & Co. Inc. is the bookrunner.
The $1,000-par preferreds are convertible into common stock at $2.00 per share, a 14% premium over the July 20 closing share price of $1.76 and the same as the sale price for a concurrent sale of $6,308,000 of class A units consisting of common stock and warrants.
The strike price of the warrants is also $2.00 a share. The warrants are exercisable beginning on the closing date and expire after seven years.
Proceeds will be used to continue funding the company’s Transcriptional Regulation, CDK inhibitor and DNA Damage Response programs, and, to a lesser extent, for other development of clinical and preclinical programs, other research and development activities, business development and general corporate purposes, which may include capital expenditures and working capital needs.
Cyclacel is a Berkeley Heights, N.J.-based biopharmaceutical company.
| Issuer: | Cyclacel Pharmaceuticals Inc.
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| Securities: | Class B units holding one share of series A convertible preferred stock and warrants
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| Amount: | $8,872,000, or 8,872 units
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| Bookrunner: | Ladenburg Thalmann & Co. Inc.
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| Series A convertible preferreds
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| Conversion price: | $2.00 a share
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| Conversion premium: | 0%
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| Warrants
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| Strike price: | $2.00 a share
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| Maturity: | Seven years
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| Pricing date: | July 21
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| Stock symbol: | Nasdaq: CYCC
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| Stock price: | $1.76 as of July 20 close
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| Market capitalization: | $5.18 million
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