By Devika Patel
Knoxville, Tenn., July 30 - Cell Therapeutics, Inc. arranged a $12 million equity line of credit with Midsummer Investment, Ltd. on July 29, according to an 8-K filed Tuesday with the Securities and Exchange Commission and a company news release.
The stock would be issued when Midsummer exercises a warrant issued by the company.
The company has the right to raise cash under the line of credit in exchange for common shares on a periodic basis. The number and price per share of each draw will be determined by a formula based on the trading volume and a discount to the volume-weighted average price of the company's common stock, as reported by the Milan Stock Exchange, over a certain period of trading days.
The first draw is expected to take place in August. Additional draws will occur until the warrant is exercised in full for 27,812,606 common shares, or $12 million, or the company elects to suspend future closings.
The company may reactivate the line of credit following any such suspension.
Cell Therapeutics is a Seattle-based developer of cancer treatments.
| Issuer: | Cell Therapeutics, Inc.
|
| Issue: | Equity line of credit
|
| Amount: | $12 million
|
| Warrants: | For $12 million in shares (or 27,812,606 shares)
|
| Investor: | Midsummer Investment, Ltd.
|
| Settlement date: | July 29
|
| Stock symbol: | Nasdaq: CTIC
|
| Stock price: | $0.3511 at close July 29
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
