MONMOUTH JUNCTION, N.J.,
March 7, 2014 /PRNewswire/
-- CytoSorbents Corporation (OTCBB: CTSO), a Nevada corporation, today announced that it
has entered into subscription agreements with certain institutional
investors to sell approximately $10,200,000 of its common stock and warrants to
purchase common stock in a registered direct offering.
Under the terms of the subscription agreements, the Company will
issue an aggregate of 40,800,000 shares of common stock at a price
of $0.25 per share. In addition, the
Company issued to the investors in the offering warrants to
purchase common stock equal to one-half of the number of shares
purchased by the investors in the offering, for a total of
20,400,000 shares. The warrants have an exercise price of
$0.3125 per share and are exercisable
on a cash basis from the issuance date for a period of five years.
The closing of the funding is expected to take place on or about
March 11, 2014, subject to the
satisfaction of customary closing conditions.
Dr. Phillip Chan, Chief Executive
Officer of CytoSorbents stated, "We were pleased to have broad
support from high quality institutional investors in this
financing. Proceeds from this offering will primarily be used to
accelerate commercialization of CytoSorb®
internationally, while helping to initiate pivotal clinical studies
in the U.S. and in Europe, with
the goal of U.S. regulatory approval of CytoSorb®."
Broadly, the Company intends to use the net proceeds from this
offering for sales and marketing, funding clinical studies, product
development, and for working capital and general corporate
purposes.
Brean Capital LLC acted as the sole placement agent in
connection with the transaction.
A registration statement relating to the shares described above
was previously filed with and has become effective by rule of the
Securities and Exchange Commission (SEC). A final prospectus
relating to the offering will be filed with the SEC and will be
available on the SEC's website at http://www.sec.gov. Copies of the
final prospectus, when available, may be obtained from Brean
Capital, LLC, 1345 Avenue of the Americas, 29th Floor, New York 10105, or by telephone at
212-702-6500 or by e-mail at syndicate@breancapital.com.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of,
the shares in any state or other jurisdiction which such offer,
solicitation or sale would be unlawful prior to the registration or
qualification under the securities laws of any such state or other
jurisdiction.
About CytoSorbents Corporation
CytoSorbents is a critical care focused immunotherapy company
using blood purification to modulate inflammation -- with the goal
of preventing or treating multiple organ failure in
life-threatening illnesses. Organ failure is the cause of nearly
half of all deaths in the intensive care unit, with little to
improve clinical outcome. CytoSorb®, the Company's flagship
product, is approved in the European Union as a safe and effective
extracorporeal cytokine filter, designed to reduce the "cytokine
storm" that could otherwise cause massive inflammation, organ
failure and death in common critical illnesses such as sepsis, burn
injury, trauma, lung injury, and pancreatitis. These are conditions
where the risk of death is extremely high, yet no effective
treatments exist. CytoSorbents' purification technologies are based
on biocompatible, highly porous polymer beads that can actively
remove toxic substances from blood and other bodily fluids by pore
capture and surface adsorption. CytoSorbents has numerous products
under development based upon this unique blood purification
technology, protected by 32 issued US patents and multiple
applications pending, including HemoDefend™, ContrastSorb,
DrugSorb, and others. Additional information is available for
download on the Company's website: http://www.cytosorbents.com/
Cautionary Note on Forward-Looking Statements
This press release includes forward-looking information and
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 and the provisions of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Except for historical
information contained in this release, statements in this release
may constitute forward-looking statements regarding our
assumptions, projections, expectations, targets, intentions or
beliefs about future events that are based on management's belief,
as well as assumptions made by, and information currently available
to, management. While we believe that our expectations are based
upon reasonable assumptions, there can be no assurances that our
goals and strategy will be realized. Numerous factors, including
risks and uncertainties, may affect our actual results and may
cause results to differ materially from those expressed in
forward-looking statements made by us or on our behalf. Some of
these factors include the acceptance of existing and future
products, the impact of competitive products and pricing, general
business and economic conditions, and other factors detailed in our
Quarterly Report on Form 10-Q and other periodic reports filed with
the SEC. We specifically disclaim any obligation to update or
revise any forward-looking statement whether as a result of new
information, future developments or otherwise.
SOURCE CytoSorbents Corporation