Cell Therapeutics eyes cash for year; SulphCo get equity financing deal; Cadillac lands new shareholder

By Kenneth Lim

Boston, April 30 - Cell Therapeutics Inc. sold $45 million worth of convertible securities and hopes it now has enough to last the rest of the year, the company said Wednesday.

Meanwhile, SulphCo Inc. said it secured a $60 million equity financing commitment from Azimuth Opportunity Ltd. to develop its core product.

Meanwhile, Cadillac Ventures Inc. landed a C$2.7 million injection from a new significant shareholder.

Cell Therapeutics sells units

Cell Therapeutics said it placed $45 million of convertible units to a single institutional investor in a private placement.

The cash-strapped company said the units comprise new series E convertible preferred stock, 13.5% convertible senior notes and warrants. They were sold at $1.14 per unit. Cell Therapeutics common stock (Nasdaq: CTIC) closed at $0.78, lower by 1.27% or a penny.

The investor also received a one-year right in the form of a warrant to buy up to $67.5 million of the units in the future.

The deal involved $9 million of $1,000 par preferreds are convertible into 11.4 million common shares at a conversion price of $0.79. The preferreds may also be exchanged after 30 days into notes. A total of $36 million in convertible notes were sold.

The investor also will receive warrants for 28,481,012 million shares, exercisable at $0.95 per share.

Of the total purchase price, $5.25 million will be paid through the return to Cell Therapeutics of 9% convertible senior notes due 2012 and the warrants issued in connection with those notes in March. These notes and warrants will be cancelled.

Cell Therapeutics, a Seattle-based biotech focusing on cancer treatments, said it will use the proceeds to retire $10.8 million remaining of 2008 senior and junior convertible notes due June 15, to acquire trial data from Bayer-Schering for its Zevalin treatment and for working capital.

Cell Therapeutics spokeswoman Lindsey Jesch told Prospect News that the deal was important for Cell Therapeutics, but declined to name the investor.

If Cell Therapeutics' product development and financing goals are achieved, the deal will provide the company with enough cash going into 2009, she said.

"If we reach the milestones that are in the deal, it will give as an open runway for the rest of the year," Jesch said.

SulphCo arranged stock financing

SulphCo said it has reached a deal with financing specialist Azimuth Opportunity for a $60 million equity financing deal.

Under the agreement, SulphCo may sell up to $60 million of its common stock to Azimuth at a small discount to market. SulphCo may determine the timing and amount of any issue.

SulphCo common stock (AMEX: SUF) closed at $3.52 on Wednesday, lower by 1.4% or $0.05.

SulphCo, a Sparks, Nev.-based developer of crude oil refining technology, said it will use the proceeds to fund the commercialization and development of its proprietary Sonocracking process and for general corporate purposes.

Cadillac raises $2.7 million

Cadillac Ventures said it sold C$2.7 million worth of common stock to Trafigura Beheer BV Amsterdam, more than it originally planned.

The placement involved 4.22 million common shares at C$0.64 each. Cadillac initially planned on selling 3.13 million shares at that price.

Cadillac common stock (CNQ: CDEX) gained C$0.09 or 15% to close at C$0.69 on Wednesday.

Following the deal, Trafigura will control about 14.9% of Cadillac's shares.

"Cadillac is pleased to welcome Trafigura as a supportive, significant shareholder," Cadillac president and chief executive Norman Brewster said in a statement.

Toronto-based Cadillac, a gold mining company, said it will use the proceeds for exploration expenditures and working capital.

© 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.