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CTI seeks USD 60mn
Posted on Friday, 09 February 2018 14:44
CTI BioPharma, a US biopharmaceutical company focused on drugs for blood-related cancers, is raising USD 60.00 million in the markets to fund a couple of clinical trials, complete a review, and conduct additional research.
The Seattle, Washington developer has priced an offering of 20.00 million shares, plus an overallotment for a further 3.00 million, at USD 3.00 apiece.
Leerink Partners is acting as sole bookrunning manager, while JMP Securities is senior lead manager, and Needham and Oppenheimer are lead managers.
CTI’s net tangible book value as of 30th September 2017 was USD 28.40 million, or USD 0.66 per stock.
When taking into account the effect of the offering and related expenses, its adjusted net tangible book value would have been USD 84.20 million, or USD 1.34 apiece.
This represents an immediate increase of USD 0.68 apiece to existing stockholders and an immediate dilution of USD 1.66 to new investors buying shares in this sale at the offering price.
CTI’s fundraiser comes just two weeks after the company changed its state of incorporation from the state of Washington to Delaware, a move which triggered an automatic delisting from the Borsa Italiana MTA exchange.
Proceeds will fund the completion of the group’s PAC203 clinical trial of lead candidate pacritinib with regards to patients with primary and secondary myelofibrosis who have failed prior ruxolitinib therapy.
The developer will also be able to finish a review of the oral kinase inhibitor’s marketing authorisation application, and bankroll additional research of this drug in indications outside of myelofibrosis.
It is also lining up the completion of a clinical trial for novel aza-anthracenedio Pixuvri and other studies or the purchase of any new potential candidates.
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