LOS ANGELES--(BUSINESS WIRE)--
CytRx Corporation (Nasdaq: CYTR), a biopharmaceutical company specializing in oncology, today announced that it has priced an underwritten public offering of 39,200,000 shares of common stock and warrants to purchase up to 39,200,000 shares of common stock at a combined public offering price of $0.52 per share and related warrant for gross proceeds of approximately $20.4 million. The warrants are exercisable immediately upon issuance at an exercise price of $0.64 per share and, unless exercised, will expire on the fifth anniversary of the date of issuance. CytRx has also granted the underwriters a 30-day option to purchase up to an additional 15 percent of shares of common stock and warrants offered in the public offering to cover over-allotments, if any, which would result in additional gross proceeds of approximately $3 million if exercised in full.
The net proceeds of the offering, after deducting the underwriting discount and estimated offering expenses payable by CytRx, will be approximately $19 million. CytRx intends to use the net proceeds of the offering to fund the clinical development of its drug candidates INNO-206, bafetinib and tamibarotene, and for general corporate purposes, which may include working capital, capital expenditures, research and development expenditures and other commercial expenditures. The offering is expected to close on or about August 1, 2011, subject to satisfaction of customary closing conditions. Cowen and Company, LLC and Roth Capital Partners, LLC are acting as the underwriters of the offering.
CytRx is offering the shares and warrants described above pursuant to a shelf registration statement on Form S-3, including a base prospectus, previously filed and declared effective by the Securities and Exchange Commission (SEC). The securities may be offered only by means of a prospectus. A preliminary prospectus supplement related to the offering was filed with the SEC on July 26, 2011 and a final prospectus supplement related to the offering will be filed with the SEC. Electronic copies of the final prospectus supplement, when available, may be obtained by either contacting the underwriters (as set forth below) or by accessing the SEC's website, www.sec.gov.
About CytRx Corporation
CytRx Corporation is a biopharmaceutical research and development oncology company engaged in the development of high-value human therapeutics.