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As filed with the Securities and Exchange Commission on March 20, 2017
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Reg. No. 333-208803
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
POST-EFFECTIVE
AMENDMENT NO. 2
to
FORM S-3
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
CYTRX CORPORATION
(Exact name of registrant as specified
in its charter)
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Delaware
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58-1642750
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(State or other jurisdiction
of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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CytRx Corporation
11726 San Vicente Boulevard, Suite 650
Los Angeles, California 90049
(Address, including zip code, and telephone
number, including area code, of registrant’s principal executive offices)
Steven A. Kriegsman
Chairman and Chief Executive Officer
CytRx Corporation
11726 San Vicente Boulevard, Suite 650
Los Angeles, California 90049
(310) 826-5648
(Name, address, including zip code, and
telephone number, including area code, of agent for service)
With a copy to:
Dale E. Short
TroyGould PC
1801 Century Park East, Suite 1600
Los Angeles, California 90067
Telephone: (310) 789-1259
Facsimile: (310) 789-1459
Approximate date of commencement of
proposed sale to public:
From time to time after the effective date of this registration statement.
If the only securities being registered
on this form are being offered pursuant to dividend or interest reinvestment plans, please check the following box.
¨
If any of the securities being registered
on this form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, other than
securities offered only in connection with dividend or interest reinvestment plans, check the following box.
x
If this Form is filed to register additional
securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities
Act registration statement number of the earlier effective registration statement for the same offering.
¨
If this Form is a post-effective amendment
filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement
number of the earlier effective registration statement for the same offering.
¨
If this Form is a registration statement
pursuant to General Instruction I.D. or a post-effective amendment thereto that shall become effective upon filing with the Commission
pursuant to Rule 462(e) under the Securities Act, check the following box.
¨
If this Form is a post-effective amendment
to a registration statement filed pursuant to General Instruction I.D. filed to register additional securities or additional classes
of securities pursuant to Rule 413(b) under the Securities Act, check the following box.
¨
Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions
of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2
of the Exchange Act. (Check one):
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Large accelerated filer
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¨
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Accelerated filer
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x
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Non-accelerated filer
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¨
(Do not check if a smaller reporting company)
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Smaller reporting company
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¨
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THE REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT
ON SUCH DATE OR DATES AS MAY BE NECESSARY TO DELAY ITS EFFECTIVE DATE UNTIL THE REGISTRANT SHALL FILE A FURTHER AMENDMENT WHICH
SPECIFICALLY STATES THAT THIS REGISTRATION STATEMENT SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH SECTION 8(A) OF THE SECURITIES
ACT OF 1933 OR UNTIL THIS REGISTRATION STATEMENT SHALL BECOME EFFECTIVE ON SUCH DATE AS THE COMMISSION, ACTING PURSUANT TO SAID
SECTION 8(A), MAY DETERMINE.
EXPLANATORY NOTE
This Registration Statement contains two prospectuses, as described
below:
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a “shelf registration prospectus” relating
to the primary offering of up to $100,000,000 of securities of the registrant that the
registrant may offer and sell in one or more transactions utilizing the shelf registration
process described in the shelf registration prospectus; and
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a “November 2013 warrants prospectus”
relating to the secondary offering of up to 250,000 shares of common stock of the registrant
that the selling security holder may offer for sale as described in the November 2013
warrants prospectus.
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The two prospectuses are substantively identical, except for
the following principal differences:
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they contain different outside front covers and back
covers;
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the shelf registration prospectus refers throughout
to the registrant’s offer and sale of its securities in the primary offering described
in the shelf registration prospectus, while the November 2013 warrants prospectus refers
throughout to the selling security holder’s offer for sale of shares of common
stock issuable upon exercise of outstanding November 2013 warrants held by the selling
security holder;
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the shelf registration prospectus contains an abbreviated
“Risk Factors” section, while the November 2013 warrants prospectus contains
a complete “Risk Factors” discussion;
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the shelf registration prospectus contains no “Dilution”
or “Selling Security Holder” section, as does the November 2013 warrants
prospectus;
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the two prospectuses contain different “Use
of Proceeds” sections;
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the shelf registration prospectus contains a “Financial
Ratio” section, while the November 2013 warrants prospectus does not;
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the two prospectuses contain different “Plan
of Distribution” sections; and
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the shelf registration prospectus contains “The
Securities That We May Offer,” “Description of Capital Stock,” “Description
of Warrants” and “Description of Units” sections, while the November
2013 warrants prospectus contains only a “Description of Capital Stock” section.
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The registrant has included in this registration
statement, after the shelf registration prospectus, the November 2013 warrants prospectus, which November 2013 warrants prospectus
reflects the foregoing principal differences from the shelf registration prospectus.
The information in this prospectus is not
complete and may be changed. These securities may not be sold until the registration statement filed with the Securities and Exchange
Commission becomes effective. This prospectus is not an offer to sell these securities, and it is not a solicitation of an offer
to buy these securities, in any state where the offer or sale is not permitted.
SUBJECT TO COMPLETION, March 20, 2017
PROSPECTUS
$100,000,000
We may offer and sell from time to
time up to $100,000,000 in the aggregate of shares of our common stock, shares of our preferred stock and warrants in amounts,
at prices and on terms that we will decide at the time of the offering. These securities may be offered and sold separately, together
or as units with other securities. Each share of our common stock to be offered and sold is accompanied by one Series A Junior
Participating Preferred Stock Purchase Right that trades with our common stock.
We will provide the specific terms of these
offers and sales in supplements to this prospectus. This prospectus may not be used to sell securities unless accompanied by a
prospectus supplement. You should read this prospectus and the prospectus supplement carefully before you invest. We may offer
securities directly to investors or through agents, underwriters or dealers. If any agents, underwriters or dealers are involved
in the sale of any of our securities, their names and any applicable purchase prices, fees, commissions or discount arrangements
will be set forth in the prospectus supplement.
Our common stock is traded on The NASDAQ
Capital Market under the symbol “CYTR.” On March 17, 2017, the last reported sale price of our common stock was $0.40
per share. The aggregate market value of our outstanding common stock held by non-affiliates as of the date of this prospectus
is approximately $54,787,717 million, calculated based upon 114,141,078 shares of outstanding common stock held by non-affiliates
and a per share price of $0.48, the closing sale price of our common stock as reported on The NASDAQ Capital Market on February
21, 2017 (a date within 60 days of the date hereof). Pursuant to General Instruction I.B.6 of Form S-3, in no event will we sell
securities registered on the registration statement of which this prospectus is a part in a public primary offering with a value
exceeding more than one-third of our public float in any 12-month period if our public float, measured in accordance with such
instruction, remains below $75 million. As of the date hereof, we have not offered any securities pursuant to General Instruction
I.B.6 of Form S-3 during the 12-month period prior to and including the date of this prospectus.
An investment in our securities
involves significant risks. Before purchasing any securities, you should consider carefully the risks referred to under “Risk
Factors” on page 3 of this prospectus and in the prospectus supplement.
NEITHER THE SECURITIES AND EXCHANGE
COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED THESE SECURITIES OR DETERMINED THAT THIS PROSPECTUS
IS COMPLETE OR ACCURATE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
The date of this prospectus is
,
2017
TABLE
OF CONTENTS
ABOUT THIS PROSPECTUS
This prospectus is part of a registration
statement (Reg. No. 333-208803) utilizing the “shelf registration” process that we filed with the Securities
and Exchange Commission, or the SEC, to permit us to offer and sell the securities described in this prospectus in one or more
transactions. The plan of distribution of the securities is described in this prospectus under the heading “Plan of Distribution.”
As permitted by the rules and regulations
of the SEC, the registration statement filed by us includes additional information not contained in this prospectus. You may read
the registration statement and the other reports we file with the SEC at the SEC’s web site or at the SEC’s offices
described below under the heading “Where You Can Find More Information.”
This prospectus provides you with a general
description of the securities we may offer. Each time securities are sold, we will provide a prospectus supplement that will contain
specific information about the terms of that offering. The prospectus supplement may also add, update or change information contained
in this prospectus. You should read both this prospectus and the prospectus supplement, together with additional information described
in this prospectus under the heading “Where You Can Find More Information.”
You should rely only on the information
provided in this prospectus and in the prospectus supplement, including any information incorporated by reference. For more details
on information incorporated herein by reference, you should review the discussion contained under the heading “Incorporation
of Certain Documents by Reference.” We have not authorized anyone to provide you with information different from that contained
or incorporated by reference in this prospectus and in the prospectus supplement. We are offering the securities only in jurisdictions
where offers are permitted. You should not assume that the information in this prospectus or the prospectus supplement is accurate
at any date other than the date indicated on the cover page of these documents.
NOTE ON FORWARD-LOOKING STATEMENTS
Some of the statements contained or incorporated
by reference in this prospectus or in the prospectus supplement may include forward-looking statements that reflect our current
views with respect to our research and development activities, business strategy, business plan, financial performance and other
future events. These statements include forward-looking statements both with respect to us, specifically, and the biotechnology
sector, in general. We make these statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. Statements that include the words “expect,” “intend,” “plan,” “believe,”
“project,” “estimate,” “may,” “should,” “anticipate,” “will”
and similar statements of a future or forward-looking nature identify forward-looking statements for purposes of the federal securities
laws or otherwise.
All forward-looking statements involve
inherent risks and uncertainties, and there are or will be important factors that could cause actual results to differ materially
from those indicated in these statements. We believe that these factors include, but are not limited to, those factors set forth
under the caption “Risk Factors” in this prospectus and in any prospectus supplement and under the captions “Business,”
“Legal Proceedings,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations,”
“Quantitative and Qualitative Disclosures About Market Risk” and “Controls and Procedures” in our most
recent Annual Report on Form 10-K incorporated herein by reference, all of which you should review carefully. Please consider
our forward-looking statements in light of those risks as you read this prospectus and the prospectus supplement. We undertake
no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments
or otherwise.
If one or more of these or other risks
or uncertainties materializes, or if our underlying assumptions prove to be incorrect, actual results may vary materially from
what we anticipate. All subsequent written and oral forward-looking statements attributable to us or individuals acting on our
behalf are expressly qualified in their entirety by this Note. Before purchasing any of our securities, you should consider carefully
all of the factors set forth or referred to in this prospectus and in the prospectus supplement that could cause actual results
to differ.
INDUSTRY DATA
Unless otherwise indicated, information
contained or incorporated by reference in this prospectus concerning our industry, including our general expectations and market
opportunity, is based on information from our own management estimates and research, as well as from industry and general publications
and research, surveys and studies conducted by third parties. Management estimates are derived from publicly available information,
our knowledge of our industry and assumptions based on such information and knowledge, which we believe to be reasonable. In addition,
assumptions and estimates of our and our industry’s future performance are necessarily subject to a high degree of uncertainty
and risk due to a variety of factors, including those referred to under “Risk Factors” below in this prospectus. These
and other factors could cause our future performance to differ materially from our assumptions and estimates.
TRADEMARKS
CytRx and LADR are some of our trademarks
used in this prospectus. This prospectus also includes trademarks, trade names and service marks that are the property of other
organizations. Solely for convenience, trademarks and trade names referred to in this prospectus sometimes appear without the
®
and ™ symbols, but those references are not intended to indicate that
we will not assert, to the fullest extent under applicable law, our rights, or that the applicable owner will not assert its rights,
to these trademarks and trade names.
ABOUT CYTRX
Company Overview
CytRx Corporation (“we,”
“us,” “our” or the “company”) is a biopharmaceutical research and development company specializing
in oncology. We currently are focused on the clinical development of aldoxorubicin, our modified version of doxorubicin. We are
also developing new anti-cancer drug conjugates that utilize our Linker Activated Drug Release (LADR
TM
) technology.
We are a Delaware corporation, incorporated
in 1985. Our corporate offices are located at 11726 San Vicente Boulevard, Suite 650, Los Angeles, California 90049, and our telephone
number is (310) 826-5648. Our web site is located on the worldwide web at http://www.cytrx.com. We do not incorporate by
reference into this prospectus the information on, or accessible through, our website, and you should not consider it as part
of this prospectus.
RISK FACTORS
Investing in our securities involves
significant risks, including those set forth under the caption “Risk Factors” in our most recent Annual Report on
Form 10-K incorporated herein by reference. The prospectus supplement relating to a particular offering will contain a discussion
of risks applicable to an investment in the securities offered. Prior to making a decision about investing in our securities,
you should carefully consider the specific factors discussed under the heading “Risk Factors” in the applicable prospectus
supplement together with all of the other information contained in the prospectus supplement or appearing or incorporated by reference
in this prospectus.
USE OF PROCEEDS
Unless we state otherwise in the accompanying
prospectus supplement, we intend to use the net proceeds from the sale of securities offered by this prospectus for working capital
and general corporate purposes, including the clinical trials of our product candidates. General corporate purposes also may include
funding of capital expenditures, payments in connection with possible future acquisitions and strategic investments and repayment
of future indebtedness.
We have not determined the amounts we plan
to spend on any of the areas listed above or the timing of these expenditures. As a result, our management will have broad discretion
to allocate the net proceeds from this offering. Pending application of the net proceeds as described above, we expect to invest
the net proceeds in short-term, interest-bearing, investment-grade securities pursuant to our investment policy.
FINANCIAL RATIOS
If required in connection with any
offer of preference equity securities, we will provide a ratio of preference dividends to earnings in the related prospectus supplement.
DIVIDEND POLICY
Our board of directors sets our dividend
policy. We have never paid any cash dividends on our common stock and do not intend to declare cash dividends on our common stock
in the foreseeable future. We currently intend to retain all available funds and any future earnings for use in the operation and
expansion of our business, but we may determine in the future to declare or pay cash dividends on our common stock. Any future
determination as to the declaration and payment of dividends will be at the discretion of our board of directors and will be dependent
upon our results of operations and cash flows, our financial position and capital requirements, general business conditions, legal,
tax, regulatory and any contractual restrictions on the payment of dividends, and any other factors our board of directors deems
relevant.
THE SECURITIES THAT WE MAY OFFER
We, directly or through agents, dealers
or underwriters designated from time to time, may offer, issue and sell, together or separately, up to $100,000,000 in the aggregate
of:
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shares of our common stock, par value $0.001 per share;
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shares of our preferred stock, par value $0.01 per
share;
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warrants to purchase our common stock or preferred
stock; and
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any combination of the securities listed above, separately
or as units, each on terms to be determined at the time of sale.
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The common stock, preferred stock, warrants
and units collectively are referred to in this prospectus as the “securities.”
We have summarized below the material terms
of the various types of securities that we may offer. We will describe in the applicable prospectus supplement the detailed terms
of the securities offered by that supplement. If indicated in the prospectus supplement, the terms of the offered securities may
differ from the terms summarized below.
DESCRIPTION OF CAPITAL STOCK
As of March 15, 2017, our authorized
capital stock consisted of 250,000,000 shares of common stock, $0.001 par value per share, of which 117,322,895 shares were outstanding,
and 5,000,000 shares of preferred stock, $0.01 par value per share, of which 25,000 shares have been designated as Series A Junior
Participating Preferred Stock and 3,900 shares have been designated as Series B Convertible Preferred Stock. There were 3,108
shares of our Series B Convertible Preferred Stock outstanding as of December 31, 2016, of which 2,712 shares had been converted
into shares of our common stock and retired as of March 15, 2017. We have reserved all of the shares of our Series A Junior Participating
Preferred Stock for issuance upon the exercise of the rights under our Shareholder Protection Rights Agreement described below.
The following summary of certain provisions
of our common stock and preferred stock does not purport to be complete. You should refer to our amended and restated certificate
of incorporation and our restated bylaws, which are filed with or incorporated by reference in the registration statement relating
to this offering filed by us with the SEC. The summary below is also qualified by reference to the provisions of applicable Delaware
corporation law.
Common Stock
Holders of our common stock are entitled
to one vote per share on matters on which our stockholders vote, including with respect to the election of directors. Holders of
common stock are entitled to receive dividends, if declared by our board of directors, out of funds that we may legally use to
pay dividends. See the section of this prospectus entitled “Dividend Policy” for further information. If we liquidate
or dissolve, holders of common stock are entitled to share ratably in our assets once our debts and any liquidation preference
owed to holders of any then-outstanding preferred stock are paid. No shares of preferred stock will be outstanding immediately
after the closing of this offering. All shares of common stock that are outstanding as of the date of this prospectus supplement
are, and all shares we are selling in this offering, upon their issuance and sale, will be, fully-paid and nonassessable. Holders
of our common stock have no preemptive, conversion or subscription rights, and there are no redemption or sinking fund provisions
with respect to our common stock.
Preferred Stock
Our board of directors has the authority
to issue shares of our authorized and unissued preferred stock in one or more series and to fix the rights of each series. These
rights may include dividend rights, dividend rates, conversion rights, voting rights, terms of redemption, redemption prices,
liquidation preferences, sinking fund terms, and the number of shares that constitute any series. The board of directors may exercise
this authority without any further action by our stockholders.
Our board of directors will fix the rights,
preferences, privileges, qualifications and restrictions of the preferred stock of each series that we sell under this prospectus
in the certificate of designation relating to each such series. We will incorporate by reference as an exhibit to the registration
statement of which this prospectus is a part or as an exhibit to one or more current reports on Form 8-K, the form of any certificate
of designation that describes the terms of the series of preferred stock we are offering before the issuance of the related series
of preferred stock. This description will include:
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the title and stated value;
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the number of shares we are offering;
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the liquidation preference per share;
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the purchase price per share;
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the dividend rate per share, dividend period, payment
date or dates and method of calculation of dividends;
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whether dividends will be cumulative or non-cumulative
and, if cumulative, the date from which dividends will accumulate;
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our right, if any, to defer payment of dividends and
the maximum length of any such deferral period;
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the procedures for any auction and remarketing, if
any;
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the provisions for a sinking fund, if any;
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the provisions for redemption or repurchase, if applicable,
and any restrictions on our ability to exercise those redemption and repurchase rights;
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any listing of the preferred stock on any securities
exchange or market;
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whether the preferred stock will be convertible into
our common stock or other securities of ours, including warrants, and, if applicable,
the conversion price, or how it will be calculated, and under what circumstances and
the mechanism by which it may be adjusted, and the conversion period;
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whether the preferred stock will be exchangeable into
debt securities or other securities of ours, and, if applicable, the exchange price,
or how it will be calculated, and under what circumstances it may be adjusted, and the
exchange period;
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preemptive rights, if any;
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restrictions on transfer, sale or other assignment,
if any;
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a discussion of any material United States federal
income tax considerations applicable to the preferred stock;
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the relative ranking and preferences of the preferred
stock as to dividend rights and rights if we liquidate, dissolve or wind up our affairs;
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any limitations on issuances of any class or series
of preferred stock ranking senior or on a parity with the series of preferred stock being
issued as to dividend rights and rights if we liquidate, dissolve or wind up our affairs;
and
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any other specific terms, rights, preferences, privileges,
qualifications or limitations of, or restrictions on, the preferred stock.
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If we issue and sell shares of preferred
stock pursuant to this prospectus, the shares will be fully paid and nonassessable and will not have, or be subject to, any preemptive
or similar rights.
The laws of the State of Delaware, the
state of our incorporation, provide that the holders of preferred stock will have the right to vote separately as a class on any
proposal involving fundamental changes in the rights of holders of such preferred stock. This right is in addition to any voting
rights that may be provided for in the applicable certificate of designation.
We believe the power to issue preferred
stock will provide our board of directors with flexibility in connection with certain possible corporate transactions. The issuance
of preferred stock, however, could adversely affect the voting power of holders of our common stock, restrict their rights to receive
payment upon liquidation, and have the effect of delaying, deferring, or preventing a change in control which may be beneficial
to our stockholders.
Anti-Takeover Measures
Delaware Law
Section 203 of the Delaware General
Corporation Law is applicable to takeovers of certain Delaware corporations, including us. Subject to exceptions enumerated in
Section 203, Section 203 provides that a corporation shall not engage in any business combination with any “interested
stockholder” for a three-year period following the date that the stockholder becomes an interested stockholder unless:
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prior to that date, the board of directors of the
corporation approved either the business combination or the transaction that resulted
in the stockholder becoming an interested stockholder;
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upon consummation of the transaction that resulted
in the stockholder becoming an interested stockholder, the interested stockholder owned
at least 85% of the voting stock of the corporation outstanding at the time the transaction
commenced, though some shares may be excluded from the calculation; or
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on or subsequent to that date, the business combination
is approved by the board of directors of the corporation and by the affirmative votes
of holders of at least two-thirds of the outstanding voting stock that is not owned by
the interested stockholder.
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Except as specified in Section 203,
an interested stockholder is generally defined to include any person who, together with any affiliates or associates of that person,
beneficially owns, directly or indirectly, 15% or more of the outstanding voting stock of the corporation, or is an affiliate or
associate of the corporation and was the owner of 15% or more of the outstanding voting stock of the corporation, any time within
three years immediately prior to the relevant date. Under certain circumstances, Section 203 makes it more difficult for an
interested stockholder to effect various business combinations with a corporation for a three-year period, although the stockholders
may elect not to be governed by this section, by adopting an amendment to the certificate of incorporation or by-laws, effective
12 months after adoption. Our amended and restated certificate of incorporation and by-laws do not opt out from the restrictions
imposed under Section 203. We anticipate that the provisions of Section 203 may encourage companies interested in acquiring
us to negotiate in advance with the board because the stockholder approval requirement would be avoided if a majority of the directors
then in office excluding an interested stockholder approve either the business combination or the transaction that resulted in
the stockholder becoming an interested stockholder. These provisions may have the effect of deterring hostile takeovers or delaying
changes in control, which could depress the market price of our common stock and deprive stockholders of opportunities to realize
a premium on shares of common stock held by them.
Charter and By-Law Provisions
In addition to the board of directors’
ability to issue shares of preferred stock, our amended and restated certificate of incorporation and restated by-laws contain
the following provisions that may have the effect of discouraging unsolicited acquisition proposals:
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our restated by-laws classify the board of directors
into three classes with staggered three-year terms;
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under our restated by-laws, our board of directors
may enlarge the size of the board and fill the vacancies;
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our restated by-laws provide that a stockholder may
not nominate candidates for the board of directors at any annual or special meeting unless
that stockholder notifies us of its intention a specified period in advance and provides
us with certain required information;
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stockholders who wish to bring business before the
stockholders at our annual meeting must provide advance notice; and
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our restated by-laws provide that special meetings
of stockholders may only be called by our board of directors or by an officer so instructed
by our board.
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Our restated by-laws also provide that,
unless we consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware will be the
sole and exclusive forum for:
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any derivative action or proceeding brought on our
behalf;
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any action asserting a claim of breach of a fiduciary
duty owed by any director, officer or other employee of the company to us or our stockholders;
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any action asserting a claim arising pursuant to any
provision of the Delaware General Corporation Law; or
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any action asserting a claim governed by the internal
affairs doctrine.
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Our restated by-laws further provide that
any person or entity purchasing or otherwise acquiring any interest in shares of capital stock of the company is deemed to have
notice of and consented to the foregoing provision.
Shareholder Protection Rights Agreement
Our board of directors adopted a Shareholder
Protection Rights Agreement, or Rights Agreement, dated April 16, 1997, as amended, between us and American Stock Transfer &
Trust Co., as Rights Agent. The Rights Agreement will expire on April 16, 2022, unless renewed or extended by our board of
directors. A series of our preferred stock, designated as Series A Junior Participating Preferred Stock, par value $0.01 per share,
was created in accordance with the Rights Agreement. The Rights Agreement is designed to deter coercive takeover tactics, including
the accumulation of shares in the open market or through private transactions, and to prevent an acquirer from gaining control
of us without offering a fair and adequate price and terms to all of our stockholders. As such, the Rights Agreement is intended
to enhance our board of directors’ ability to protect stockholder interests and help to assure that stockholders receive
fair and equal treatment in the event any proposed takeover of CytRx is made in the future. Pursuant to the Rights Agreement,
our board of directors declared a dividend distribution of one preferred stock purchase right for each outstanding share of our
common stock. The preferred stock purchase rights are attached to, and trade with, our common stock. The purchase rights are exercisable
only upon the occurrence of certain triggering events described in the Rights Agreement.
Transfer Agent
The transfer agent for our common stock
is American Stock Transfer & Trust Company, 40 Wall Street, New York,
New York 10005.
DESCRIPTION OF WARRANTS
We may offer and issue warrants to purchase
shares of our common stock or preferred stock. The warrants may be issued independently or as a part of units consisting of shares
of our common stock or preferred stock and warrants to purchase additional shares of our common stock or preferred stock. If the
warrants are issued pursuant to warrant agreements, we will so specify in the prospectus supplement relating to the warrants being
offered pursuant to the prospectus supplement.
The following description will apply to
the warrants offered by this prospectus unless we provide otherwise in the applicable prospectus supplement. The applicable prospectus
supplement for a particular series of warrants may specify different or additional terms. The forms of any warrant certificates
or warrant agreements evidencing the warrants that we issue will be filed with the SEC and incorporated by reference into this
prospectus, and you should carefully review such documents.
The prospectus supplement will describe
the following terms of warrants to purchase our common stock, preferred stock or debt securities to the extent applicable:
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the title of the warrants;
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the common stock or preferred stock for which the
warrants are exercisable;
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the price at which the warrants will be issued and
the exercise price of the warrants;
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the aggregate number of warrants offered;
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the number of shares of common stock or preferred
stock that may be purchased upon the exercise of each warrant;
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whether the warrants are being offered separately
or as a part of units consisting of shares of our common stock or preferred stock and
warrants to purchase additional shares of our common stock or preferred stock;
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the terms of any right by us to redeem the warrants;
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the date on which the right to exercise the warrants
will commence and the date on which this right will expire;
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the procedures for exercising the warrants;
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the terms on which the warrants may be amended;
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the terms of any adjustments in the warrant exercise
price and the number of shares of common stock or preferred stock purchasable upon the
exercise of each warrant to be made in certain events, including the issuance of a stock
dividend to holders of common stock or preferred stock or a stock split, reverse stock
split, combination, subdivision or reclassification of common stock;
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the effect on the warrants of our merger or consolidation
with another entity or our sale of all or substantially all of our assets;
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the maximum or minimum number of warrants which may
be exercised at any time; and
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the material United States federal income tax consequences
applicable to the warrants and their exercise.
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Holders of warrants to purchase common
stock or preferred stock will not be entitled, by virtue of being such holders, to vote, consent, receive dividends, receive notice
as stockholders with respect to any meeting of stockholders for the election of our directors or any other matter, or to exercise
any rights whatsoever as our stockholders.
Warrants may be exercised at any time up
to the close of business on the expiration date set forth in the prospectus supplement relating to the warrants offered thereby.
After the close of business on the expiration date, unexercised warrants will become void. Upon our receipt of the exercise price
of the warrants upon the due exercise of the warrants, we will, as soon as practicable, forward the securities purchasable upon
exercise. If less than all of the warrants represented by such warrant certificate are exercised, a new warrant certificate will
be issued for the remaining warrants.
DESCRIPTION OF UNITS
We may offer and issue units that consist
of shares of our common stock or preferred stock and warrants to purchase additional shares of our common stock or preferred stock.
For example, we may elect to issue units for a specified price per unit, with each unit consisting of one share of our common stock
or preferred stock and one warrant to purchase an additional share of our common stock or preferred stock at a specified price.
The holder of a unit will also hold each of the securities that is included in the unit.
We have provided in the preceding sections
of this prospectus a general description of our common stock, preferred stock, and warrants that we may offer. If we elect to offer
units, we will describe the specific terms of the units in a supplement to this prospectus. Among other things, the prospectus
supplement will describe, to the extent applicable:
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the price of each unit;
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the securities comprising each unit;
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the exercise price of the warrants comprising part
of the units;
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the aggregate number of units offered;
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the number of shares of common stock or preferred
stock that may be purchased upon the exercise of each warrant comprising part of a unit;
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the terms of any right by us to redeem any of the
securities comprising the units;
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the date on which the right to exercise the warrants
forming part of the units will commence and the date on which this right will expire;
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any transfer restrictions on the units, including
whether the securities comprising the units may be transferred separately;
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the terms on which the units or warrants forming part
of the units may be amended;
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with respect to preferred stock forming part of the
units, the other matters listed above under “Description of Capital Stock—Preferred
Stock”;
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with respect to warrants forming part of the units,
the other matters listed above under “Description of Warrants”; and
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the material United States federal income tax consequences
applicable to the units.
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PLAN OF DISTRIBUTION
We may sell the securities being offered
hereby in one or more of the following ways from time to time:
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through agents to the public or to investors;
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to one or more underwriters for resale to the public
or to investors;
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in “at the market” offerings, within the
meaning of Rule 415(a)(4) of the Securities Act of 1933, as amended, or the Securities
Act, to or through a market maker or into an existing trading market, on an exchange
or otherwise;
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directly to investors; or
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through a combination of these methods of sale.
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We will set forth in a prospectus supplement
the terms of an offering of shares of our securities, including.
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the name or names of any agents or underwriters;
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the purchase price of the securities being offered
and the proceeds we will receive from the sale;
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any over-allotment options under which underwriters
may purchase additional securities from us;
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any agency fees or underwriting discounts and other
items constituting agents’ or underwriters’ compensation;
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the public offering price; and
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any discounts or concessions allowed or reallowed
or paid to dealers.
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We may distribute the securities from time
to time in one or more transactions;
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at a fixed price or prices, which may be changed;
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at market prices prevailing at the time of sale;
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at prices related to such prevailing market prices;
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We may also, from time to time, authorize
dealers, acting as our agents, to offer and sell securities upon the terms and conditions set forth in the applicable prospectus
supplement. We, or the purchasers of securities for whom the underwriters may act as agents, may compensate underwriters in the
form of underwriting discounts or commissions, in connection with the sale of securities. Underwriters may sell the securities
to or through dealers, and those dealers may receive compensation in the form of discounts, concessions or commissions from the
underwriters or commissions from the purchasers for whom they may act as agent. Unless otherwise indicated in a prospectus supplement,
an agent will be acting on a “best efforts” basis and a dealer will purchase securities as a principal, and may then
resell the common stock at varying prices to be determined by the dealer.
We will describe in the applicable prospectus
supplement any compensation we will pay to underwriters or agents in connection with the offering of securities, and any discounts,
concessions or commissions allowed by underwriters to participating dealers. The dealers and agents participating in the distribution
of securities may be deemed to be underwriters, and any discounts and commissions received by them and any profit realized by them
on resale of the securities may be deemed to be underwriting discounts and commissions. We may enter into agreements to indemnify
underwriters, dealers and agents against certain civil liabilities, including liabilities under the Securities Act and to reimburse
these persons for certain expenses. We may grant underwriters who participate in the distribution of securities we are offering
under this prospectus an option to purchase additional shares to cover over-allotments, if any, in connection with the distribution.
To facilitate the offering of securities,
certain persons participating in the offering may engage in transactions that stabilize, maintain, or otherwise affect the price
of the securities. This may include over-allotments or short sales of the securities, which involve the sale by persons participating
in the offering of more securities than we sold to them. In these circumstances, these persons would cover such over-allotments
or short positions by making purchases in the open market or by exercising their over-allotment option, if any. In addition, these
persons may stabilize or maintain the price of the securities by bidding for or purchasing securities in the open market or by
imposing penalty bids, whereby selling concessions allowed to dealers participating in the offering may be reclaimed if securities
sold by them is repurchased in connection with stabilization transactions. The effect of these transactions may be to stabilize
or maintain the market price of the securities at a level above that which might otherwise prevail in the open market. These transactions
may be discontinued at any time.
Any underwriters who are qualified market
makers on The NASDAQ Capital Market may engage in passive market making transactions in the securities on The NASDAQ Capital Market
in accordance with Rule 103 of Regulation M, during the business day prior to the pricing of the offering, before the commencement
of offers or sales of the securities. Passive market makers must comply with applicable volume and price limitations and must be
identified as passive market makers. In general, a passive market maker must display its bid at a price not in excess of the highest
independent bid for such security; if all independent bids are lowered below the passive market maker’s bid, however, the
passive market maker’s bid must then be lowered when certain purchase limits are exceeded.
Certain underwriters, dealers or agents
and their associates may engage in transactions with and perform services for us in the ordinary course of our business.
WHERE YOU CAN FIND MORE INFORMATION
We file annual, quarterly and current reports,
proxy statements and other information with the SEC. Our SEC filings are available to the public over the Internet at the SEC’s
website at http://www.sec.gov. The SEC’s website contains reports, proxy and information statements and other information
regarding issuers such as us that file electronically with the SEC. You may also read and copy any document we file with the SEC
at the SEC’s Public Reference Room at 100 F Street, N.E., Room 1580, Washington, D.C. 20549, and may obtain copies of these
documents at prescribed rates by writing to the SEC. Please call the SEC at 1-800-SEC-0330 for further information on the operation
of its Public Reference Room.
Information about us is also available
at our website at www.cytrx.com; however, information on our website is not incorporated into this prospectus and is not a part
of this prospectus.
INCORPORATION OF CERTAIN DOCUMENTS BY
REFERENCE
The SEC allows us to “incorporate
by reference” the information we have filed with it, which means that we can disclose important information to you by referring
you to another document that we have filed separately with the SEC. You should read the information incorporated by reference because
it is an important part of this prospectus. Any statement in a document we incorporate by reference into this prospectus will be
considered to be modified or superseded to the extent a statement contained in this prospectus or any other subsequently filed
document that is incorporated by reference into this prospectus modifies or supersedes that statement. The modified or superseded
statement will not be considered to be a part of this prospectus, except as modified or superseded.
We incorporate by reference the following
information or documents that we have filed with the SEC (excluding those portions of any document that are “furnished”
and not “filed” in accordance with SEC rules):
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our Annual Report on Form 10-K for the year ended
December 31, 2016 filed with the SEC on March 15, 2017;
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our Current Reports on Form 8-K and Form 8-K/A filed
with the SEC on January 6, 2017, January 13, 2017, February 24, 2017 and
March 15, 2017, respectively;
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the description of our securities as described in
our Registration Statement on Form 8-A filed under the Exchange Act on March 17,
1987 (File No. 000-15327), and any amendment or report filed for the purpose of updating
any such description; and
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the description of our Series A Junior Participating
Preferred Stock Purchase Rights as described in our Registration Statement on Form 8-A
filed under the Exchange Act on April 17, 1997 (File No. 000 15327), and any amendment
or report filed for the purpose of updating any such descriptions.
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We also incorporate by reference all
documents filed by us pursuant to Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act after the date on which we filed the
registration statement of which this prospectus is a part and prior to the termination of this offering (excluding those portions
of any document that are “furnished” and not “filed” in accordance with SEC rules).
Statements made in this prospectus or in
any document incorporated by reference in this prospectus as to the contents of any contract or other document referred to herein
or therein are not necessarily complete, and in each instance reference is made to the copy of such contract or other document
filed as an exhibit to the documents incorporated by reference, each such statement being qualified in all material respects by
such reference.
You may obtain a copy of the foregoing
documents from us without charge by writing or calling us at the following address and telephone number: 11726 San Vicente Blvd.,
Suite 650 Los Angeles, California 90049, Attention: Corporate Secretary; (310) 826-5648.
LEGAL MATTERS
The validity of the securities being offered
hereby has been passed upon for us by TroyGould PC, Los Angeles, California. TroyGould PC and some of its attorneys own shares
of our common stock constituting in the aggregate less than 1% of our outstanding shares of common stock.
EXPERTS
The financial statements and
schedule as of December 31, 2016 and 2015 and for each of the three years in the period ended December 31, 2016 and
management’s assessment of the effectiveness of internal control over financial reporting as of December 31, 2016
incorporated by reference in this prospectus have been so incorporated in reliance on the reports of BDO USA, LLP, an
independent registered public accounting firm, incorporated herein by reference, given on the authority of said firm as
experts in auditing and accounting.
PROSPECTUS
$100,000,000
The date of this prospectus is
,
2017
The information in this prospectus is
not complete and may be changed. These securities may not be sold until the registration statement filed with the Securities and
Exchange Commission becomes effective. This prospectus is not an offer to sell these securities, and it is not a solicitation
of an offer to buy these securities, in any state where the offer or sale is not permitted.
SUBJECT TO COMPLETION, March 20, 2017
PROSPECTUS
CYTRX CORPORATION
250,000 Shares
Common
Stock
This prospectus related to the offer for
sale by the selling security holder of up to 250,000 shares of our common stock issuable upon the exercise of our outstanding 2013
warrants. The November 2013 warrants are exercisable until November 10, 2018 for up to 125,000 shares of our common stock
at an exercise price of $3.00 per share and for up to 125,000 shares of our common stock at an exercise price of $3.75 per share.
When issued upon exercise of the November 2013 warrants, each share of our common stock will be accompanied by one Series A
Junior Participating Preferred Stock Purchase Right that trades with our common stock.
We will not receive any proceeds from the
sale of the shares by the selling security holder, except for the exercise price of any November 2013 warrants that may be exercised
by the selling security holder. We will bear the costs and expenses of this offering, except that the selling security holder will
bear any commissions and discounts attributable to its sales of the shares offered hereby.
Our common stock is traded on The NASDAQ
Capital Market under the symbol “CYTR.” On March 17, 2017, the last sale price of our common stock as reported on
The NASDAQ Capital Market was $0.40.
The selling security holder may offer the
shares from time to time to or through brokers, dealers or other agents, or directly to other purchasers, in one or more market
transactions or private transactions at prevailing market or at negotiated prices.
An investment in our shares involves
a high degree of risk. Before purchasing any shares, you should consider carefully the risks described under “Risk Factors”
beginning on page 2.
NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE
SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED THESE SECURITIES OR DETERMINED THAT THIS PROSPECTUS IS COMPLETE OR ACCURATE.
ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
The date of this prospectus is ________________,
2017
TABLE OF CONTENTS
ABOUT THIS PROSPECTUS
This prospectus is part of a registration
statement (Reg. No. 333-208803) that we filed with the Securities and Exchange Commission, or the SEC, to permit the selling
security holder to sell the shares described in this prospectus in one or more transactions. The selling security holder and the
plan of distribution of the shares being offered by it are described in this prospectus under the headings “Selling Security
Holder” and “Plan of Distribution.”
As permitted by the rules and regulations
of the SEC, the registration statement filed by us includes additional information not contained in this prospectus. You may read
the registration statement and the other reports we file with the SEC at the SEC’s web site or at the SEC’s offices
described below under the heading “Where You Can Find More Information.”
NOTE ON FORWARD-LOOKING STATEMENTS
Some of the statements contained or incorporated
by reference in this prospectus or in the prospectus supplement may include forward-looking statements that reflect our current
views with respect to our research and development activities, business strategy, business plan, financial performance and other
future events. These statements include forward-looking statements both with respect to us, specifically, and the biotechnology
sector, in general. We make these statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. Statements that include the words “expect,” “intend,” “plan,” “believe,”
“project,” “estimate,” “may,” “should,” “anticipate,” “will”
and similar statements of a future or forward-looking nature identify forward-looking statements for purposes of the federal securities
laws or otherwise.
All forward-looking statements involve
inherent risks and uncertainties, and there are or will be important factors that could cause actual results to differ materially
from those indicated in these statements. We believe that these factors include, but are not limited to, those factors set forth
under the caption “Risk Factors” in this prospectus and under the captions “Business,” “Legal Proceedings,”
“Management’s Discussion and Analysis of Financial Condition and Results of Operations,” “Quantitative
and Qualitative Disclosures About Market Risk” and “Controls and Procedures” in our most recent Annual Report
on Form 10-K incorporated herein by reference, all of which you should review carefully. Please consider our forward-looking statements
in light of those risks as you read this prospectus. We undertake no obligation to publicly update or review any forward-looking
statement, whether as a result of new information, future developments or otherwise.
If one or more of these or other risks
or uncertainties materializes, or if our underlying assumptions prove to be incorrect, actual results may vary materially from
what we anticipate. All subsequent written and oral forward-looking statements attributable to us or individuals acting on our
behalf are expressly qualified in their entirety by this Note. Before purchasing any of our shares, you should consider carefully
all of the factors set forth or incorporated herein by reference in this prospectus that could cause actual results to differ.
INDUSTRY DATA
Unless otherwise indicated, information
contained or incorporated by reference in this prospectus concerning our industry, including our general expectations and market
opportunity, is based on information from our own management estimates and research, as well as from industry and general publications
and research, surveys and studies conducted by third parties. Management estimates are derived from publicly available information,
our knowledge of our industry and assumptions based on such information and knowledge, which we believe to be reasonable. In addition,
assumptions and estimates of our and our industry’s future performance are necessarily subject to a high degree of uncertainty
and risk due to a variety of factors, including those referred to under “Risk Factors” beginning on page 2 of this
prospectus. These and other factors could cause our future performance to differ materially from our assumptions and estimates.
TRADEMARKS
CytRx and LADR are some of our trademarks
used in this prospectus. This prospectus also includes trademarks, trade names and service marks that are the property of other
organizations. Solely for convenience, trademarks and trade names referred to in this prospectus sometimes appear without the
®
and ™ symbols, but those references are not intended to indicate that
we will not assert, to the fullest extent under applicable law, our rights, or that the applicable owner will not assert its rights,
to these trademarks and trade names.
ABOUT CYTRX
Company Overview
CytRx Corporation (“we,”
“us,” “our” or the “company”) is a biopharmaceutical research and development company specializing
in oncology. We currently are focused on the clinical development of aldoxorubicin, our modified version of doxorubicin. We are
also developing new anti-cancer drug conjugates that utilize our Linker Activated Drug Release (LADR
TM
) technology.
We are a Delaware corporation, incorporated
in 1985. Our corporate offices are located at 11726 San Vicente Boulevard, Suite 650, Los Angeles, California 90049, and our telephone
number is (310) 826-5648. Our web site is located on the worldwide web at http://www.cytrx.com. We do not incorporate by reference
into this prospectus the information on, or accessible through, our website, and you should not consider it as part of this prospectus.
RISK FACTORS
Investing in our securities involves
significant risks, including those set forth under the caption “Risk Factors” in our most recent Annual Report on
Form 10-K incorporated herein by reference. You should carefully consider those risks and the risks described below before making
an investment decision. Those risks and the risks described below are not the only ones we face. Additional risks we are not presently
aware of or that we currently believe are immaterial may also impair our business operations. Our business could be harmed by
any of these risks. The trading price of our common stock could decline due to any of these risks, and you may lose all or part
of your investment. In assessing these risks, you should also refer to the other information contained or incorporated by reference
into this prospectus, including our financial statements and related notes. We have attempted to identify below the major factors
that could cause differences between actual and planned or expected results, but we cannot assure you that we have identified
all such factors.
Risks Associated With Our Common Stock
You may experience future dilution as
a result of future equity offerings or other equity issuances.
To raise additional capital, we may
in the future offer additional shares of our common stock, preferred stock or other securities convertible into or exchangeable
for our common stock. We cannot assure you that we will be able to sell shares or other securities in any other offering at a
price per share that is equal to or greater than the price per share that you may pay for the shares of our common stock offered
hereby. The price per share at which we sell additional shares of our common stock or other securities convertible into or exchangeable
for our common stock in future transactions may be higher or lower than the price per share that you may pay for the shares of
our common stock.
Our common stock may be delisted from
The NASDAQ Capital Market.
On August 24, 2016, we received notice
from The NASDAQ Capital Market (“Nasdaq”) that the closing bid price for our common stock had been below $1.00 for
the previous 30 consecutive business days, and that we are therefore not in compliance with the minimum bid price requirement
for continued inclusion on The Nasdaq Capital Market under Nasdaq Listing Rule 5550(a)(2). The notice indicated that we would
have 180 calendar days, or until February 21, 2017, to regain compliance with this requirement. On February 22, 2017, Nasdaq
notified us that we are eligible for an extension to comply with the minimum $1.00 bid price requirement through August 21, 2017,
by which date we must evidence compliance for at least ten consecutive business days. If compliance cannot be demonstrated by
August 21, 2017, Nasdaq will provide written notification that our common stock will be delisted. In the event of such a notification,
we may appeal Nasdaq’s determination, but there can be no assurance Nasdaq would grant any such request for continued listing.
If it appears to Nasdaq that we will
not be able to cure the deficiency, or if we are otherwise not eligible, we expect that Nasdaq will notify us that our common
stock will be subject to delisting. If our common stock is delisted from Nasdaq, the market value of our common stock may decline,
and you may be unable to readily sell shares of our common stock.
We may experience volatility in our stock
price, which may adversely affect the trading price of our common stock.
The market price of our common stock
in 2016 ranged from $0.36 to $3.66 per share, and it may continue to experience significant volatility from time to time. Factors
that may affect the market price of our common stock include the following:
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announcements
of interim or final results of our clinical trials or our drug discovery activities;
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announcements
of regulatory developments or technological innovations by us or our competitors;
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changes in
our relationship with our licensors and other strategic partners;
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our quarterly
operating results;
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litigation
involving or affecting us;
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shortfalls
in our actual financial results compared to our guidance or the forecasts of stock market
analysts;
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developments
in patent or other technology ownership rights;
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acquisitions
or strategic alliances by us or our competitors;
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public concern
regarding the safety of our products; and
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government
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Our outstanding options and warrants and
the availability for resale of the underlying shares may adversely affect the trading price of our common stock.
As of December 31, 2016, we had outstanding
stock options to purchase 17,479,770 shares of our common stock at a weighted-average exercise price of $2.37 per share and outstanding
warrants to purchase 32,502,790 shares of common stock at a weighted-average exercise price of $0.68 per share. Our outstanding
options and warrants could adversely affect our ability to obtain future financing or engage in certain mergers or other transactions,
since the holders of options and warrants can be expected to exercise them at a time when we may be able to obtain additional
capital through a new offering of securities on terms more favorable to us than the terms of outstanding options and warrants.
For the life of the options and warrants, the holders have the opportunity to profit from a rise in the market price of our common
stock without assuming the risk of ownership. The issuance of shares upon the exercise of outstanding options and warrants will
also dilute the ownership interests of our existing stockholders. Many of our outstanding warrants contain anti-dilution provisions
pertaining to dividends with respect to our common stock. In the event that these anti-dilution provisions are triggered by us
in the future, we would likewise be required to reduce the exercise price, and increase the number of shares underlying, those
warrants, which would have a dilutive effect on our stockholders.
We have registered with the SEC the resale
by the holders of all or substantially all shares of our common stock issuable upon exercise of our outstanding options and warrants.
The availability of these shares for public resale, as well as actual resales of these shares, could adversely affect the trading
price of our common stock.
We cannot assure investors that our
internal controls will prevent future material weaknesses.
As of December 31, 2015, we identified
a control deficiency in our financial reporting process concerning a non-routine and unusual item that constituted a material
weakness in our internal controls. Since then, we have performed a comprehensive review of significant and unusual transactions,
and during the quarter ended September 30, 2016, we implemented new controls and strengthened existing controls over the identification
and accounting for significant and unusual transactions. As of December 31, 2016, our management concluded that the controls
were operating effectively and that the material weakness as of December 31, 2015 had been fully remediated. There can be no assurance,
however, that the new controls will prevent the weakness from re-occurring in the future.
There also can be no assurance that
we will not suffer from other material weaknesses in the future. If we fail to remediate these material weaknesses or fail to
otherwise maintain effective internal controls over financial reporting in the future, such failure could result in a material
misstatement of our annual or quarterly financial statements that would not be prevented or detected on a timely basis and which
could cause investors and other users to lose confidence in our financial statements, limit our ability to raise capital and have
a negative effect on the trading price of our common stock. Additionally, failure to remediate the material weaknesses or otherwise
failing to maintain effective internal controls over financial reporting may also negatively impact our operating results and
financial condition, impair our ability to timely file our periodic and other reports with the SEC, subject us to additional litigation
and regulatory actions and cause us to incur substantial additional costs in future periods relating to the implementation of
remedial measures.
We are subject to legal actions that
could adversely affect our financial condition.
We announced in December 2015 and January
2016 that we agreed to settle federal securities class actions and stockholder derivative lawsuits filed in 2014 against us and
certain of our officers and directors. In July 2016, Securities-related class action lawsuits and derivative litigation have often
been brought against companies, including many biotechnology companies, which experience volatility in the market price of their
securities. This risk is especially relevant for biotechnology and biopharmaceutical companies such as ours, which often experience
significant stock price volatility in connection with their product development programs.
As described in more detail in Item
3 of Part I of our Annual Report on Form 10-K for the year ended December 31, 2016 incorporated herein by reference, our
directors and certain of our officers are subject to stockholder derivative claims pending in the Delaware Court of Chancery and
we and certain of our officers are subject to class-action complaints filed in the U.S. District Court for the Central District
of California. Although we carry director’s and officer’s and other liability insurance, we must pay the first legal
fees and other litigation expenses incurred up to the application retention, or deductible, amounts under our insurance policies,
and the insurance may not be sufficient to cover all of the liabilities that we may incur in connection with the pending or possible
future legal actions. As a result, the pending legal proceedings and any future legal actions may adversely affect out financial
condition.
Our anti-takeover measures may make it
more difficult to change our management, or may discourage others from acquiring us, and thereby adversely affect stockholder value.
We have a stockholder rights plan and
provisions in our restated by-laws, as amended, that are intended to protect our stockholders’ interests by encouraging
anyone seeking control of our company to negotiate with our board of directors. These provisions may discourage or prevent a person
or group from acquiring us without the approval of our board of directors, even if the acquisition would be beneficial to our
stockholders.
We have a classified board of directors,
which means that at least two stockholder meetings, instead of one, will be required to effect a change in the majority control
of our board of directors. This applies to every election of directors, not just an election occurring after a change in control.
The classification of our board increases the amount of time it takes to change majority control of our board of directors and
may cause potential acquirers to lose interest in a potential purchase of us, regardless of whether our purchase would be beneficial
to us or our stockholders. The additional time and cost to change a majority of the members of our board of directors makes it
more difficult and may discourage our existing stockholders from seeking to change our existing management in order to change
the strategic direction or operational performance of our company.
Our by-laws provide that directors may
only be removed for cause by the affirmative vote of the holders of at least a majority of the outstanding shares of our capital
stock then entitled to vote at an election of directors. This provision prevents stockholders from removing any incumbent director
without cause. Our by-laws also provide that a stockholder must give us at least 120 days notice of a proposal or director nomination
that such stockholder desires to present at any annual meeting or special meeting of stockholders. Such provision prevents a stockholder
from making a proposal or director nomination at a stockholder meeting without us having advance notice of that proposal or director
nomination. This could make a change in control more difficult by providing our directors with more time to prepare an opposition
to a proposed change in control. By making it more difficult to remove or install new directors, these bylaw provisions may also
make our existing management less responsive to the views of our stockholders with respect to our operations and other issues
such as management selection and management compensation.
We are subject to the anti-takeover
provisions of Section 203 of the Delaware General Corporation Law, which may also prevent or delay a takeover of us that may be
beneficial to our stockholders.
Our restated by-laws, as amended,
designate the Court of Chancery of the State of Delaware as the sole and exclusive forum for certain types of actions and proceedings
that may be initiated by our stockholders, which could limit our stockholders’ ability to obtain a favorable judicial forum
for disputes with us or our directors, officers or other employees.
Our by-laws provide that, unless we
consent in writing to an alternative forum, the Court of Chancery of the State of Delaware will be the sole and exclusive forum
for (i) any derivative action or proceeding brought on our behalf, (ii) any action asserting a claim of breach of a
fiduciary duty owed by any director, officer or other employee to us or our stockholders, (iii) any action asserting a claim
arising pursuant to any provision of the Delaware General Corporation Law, or (iv) any action asserting a claim that is governed
by the internal affairs doctrine. Any person purchasing or otherwise acquiring any interest in any shares of our capital stock
shall be deemed to have notice of and to have consented to this provision of our by-laws. This choice-of-forum provision may limit
our stockholders’ ability to bring a claim in a judicial forum that it finds favorable for disputes with us or our directors,
officers or other employees, which may discourage such lawsuits. Alternatively, if a court were to find this provision of our
amended and restated by-laws inapplicable or unenforceable with respect to one or more of the specified types of actions or proceedings,
we may incur additional costs associated with resolving such matters in other jurisdictions, which could adversely affect our
business and financial condition.
We may issue preferred stock in the future,
and the terms of the preferred stock may reduce the value of our common stock.
We are authorized to issue shares of
preferred stock in one or more series. Our board of directors may determine the terms of future preferred stock offerings without
further action by our stockholders. If we issue preferred stock, it could affect your rights or reduce the value of our outstanding
common stock. In particular, specific rights granted to future holders of preferred stock may include voting rights, preferences
as to dividends and liquidation, conversion and redemption rights, sinking fund provisions, and restrictions on our ability to
merge with or sell our assets to a third party.
We do not expect to pay any cash dividends
on our common stock.
We have not declared or paid any cash dividends
on our common stock or other securities, and we currently do not anticipate paying any cash dividends in the foreseeable future.
Because we do not anticipate paying cash dividends for the foreseeable future, our security holders will not realize a return on
their investment in our common stock except to the extent of any appreciation in the value of our common stock. Our common stock
may not appreciate in value, or may decline in value.
Rights Associated With This Offering
We will not receive any proceeds from
the sale of shares by the selling security holder.
We will not receive any proceeds from the
sale of the shares by the selling security holder, except for the exercise price of any November 2013 warrants that may be exercised
by the selling security holder. We will bear the costs and expenses of this offering, except that the selling security holder will
bear any commissions and discounts attributable to its sales of the shares offered hereby.
USE OF PROCEEDS
The selling security holder will receive
all of the proceeds from the sale of shares under this prospectus. We will not receive any proceeds from the sale of the shares
by the selling security holder, except for the exercise price of any of the November 2013 warrants that are exercised by the selling
security holder. We will bear the costs and expenses of this offering, except that the selling security holder will bear any commissions
and discounts attributable to its sale of the shares offered hereby.
DIVIDEND POLICY
Our board of directors sets our dividend
policy. We have never paid any cash dividends on our common stock and do not intend to declare cash dividends on our common stock
in the foreseeable future. We currently intend to retain all available funds and any future earnings for use in the operation and
expansion of our business, but we may determine in the future to declare or pay cash dividends on our common stock. Any future
determination as to the declaration and payment of dividends will be at the discretion of our board of directors and will be dependent
upon our results of operations and cash flows, our financial position and capital requirements, general business conditions, legal,
tax, regulatory and any contractual restrictions on the payment of dividends, and any other factors our board of directors deems
relevant.
DESCRIPTION OF CAPITAL STOCK
As of March 15, 2017, our authorized
capital stock consisted of 250,000,000 shares of common stock, $0.001 par value per share, of which 117,322,895 shares were outstanding,
and 5,000,000 shares of preferred stock, $0.01 par value per share, of which 25,000 shares have been designated as Series A Junior
Participating Preferred Stock and 3,900 shares have been designated as Series B Convertible Preferred Stock. There were 3,108
shares of our Series B Convertible Preferred Stock outstanding as of December 31, 2016, of which 2,712 shares had been converted
into shares of our common stock and retired as of March 15, 2017.
The following summary of certain provisions
of our common and preferred stock does not purport to be complete. You should refer to our amended and restated certificate of
incorporation and our restated by-laws, which are filed with or incorporated by reference in the registration statement relating
to this offering filed by us with the SEC. The summary below is also qualified by reference to the provisions of applicable Delaware
corporation law.
Common Stock
Holders of our common stock are entitled
to one vote per share on matters on which our stockholders vote, including with respect to the election of directors. Holders
of common stock are entitled to receive dividends, if declared by our board of directors, out of funds that we may legally use
to pay dividends. See the section of this prospectus entitled “Dividend Policy” for further information. If we liquidate
or dissolve, holders of common stock are entitled to share ratably in our assets once our debts and any liquidation preference
owed to holders of any then-outstanding preferred stock are paid. No shares of preferred stock will be outstanding immediately
after the closing of this offering. All shares of common stock that are outstanding as of the date of this prospectus supplement
are, and all shares we are selling in this offering, upon their issuance and sale, will be, fully-paid and nonassessable. Holders
of our common stock have no preemptive, conversion or subscription rights, and there are no redemption or sinking fund provisions
with respect to our common stock.
Series A Junior Participating Preferred Stock
We have reserved of the shares of our
Series A Junior Participating Preferred Stock for issuance upon the exercise of the rights under our Shareholder Protection Rights
Agreement described below.
Series B Convertible Preferred Stock
Conversion
. Each share of Series
B Convertible Preferred Stock is convertible into shares of our common stock (subject to adjustment as provided in the related
certificate of designation of preferences) at any time at the option of the holder, provided that the holder will be prohibited
from converting Series B Convertible Preferred Stock into shares of our common stock if, as a result of such conversion, the holder,
together with its affiliates, would own more than 4.99% of the total number of shares of our common stock then issued and outstanding.
Any holder may increase or decrease such percentage to any other percentage not in excess of 9.99%, provided that any increase
in such percentage shall not be effective until 61 days after such notice to us.
Liquidation Preference
. In the
event of a liquidation of the company, the holders of Series B Convertible Preferred Stock are entitled to participate on an as-converted-to-common
stock basis with holders of common stock in any distribution of assets of the company to the holders of common stock.
Voting Rights
. Shares of Series
B Convertible Preferred Stock will generally have no voting rights, except as required by law and except that the consent of the
holders of the outstanding Series B Convertible Preferred Stock will be required to amend any provision of our amended and restated
certificate of incorporation that would have a materially adverse effect on the rights of the holders of the Series B Convertible
Preferred Stock.
Dividends
. Shares of Series
B Convertible Preferred Stock will not be entitled to receive any dividends, unless and until specifically declared by our board
of directors. The holders of the Series B Convertible Preferred Stock will participate, on an as-converted-to-common stock basis,
in any dividends to the holders of common stock.
Redemption
. We are not obligated
to redeem or repurchase any shares of Series B Convertible Preferred Stock. Shares of Series B Convertible Preferred Stock are
not otherwise entitled to any redemption rights or mandatory sinking fund or analogous fund provisions.
Listing
. The Series B Convertible
Preferred Stock is not listed for trading on The NASDAQ Capital Market, any national securities exchange or other nationally recognized
trading system. We expect the common stock issuable upon conversion of the Series B Convertible Preferred Stock to be listed on
The NASDAQ Capital Market.
Our board of directors has the authority
to issue shares of our authorized and unissued preferred stock in one or more series and to fix the rights of each series. These
rights may include dividend rights, dividend rates, conversion rights, voting rights, terms of redemption, redemption prices,
liquidation preferences, sinking fund terms, and the number of shares that constitute any series. The board of directors may exercise
this authority without any further action by our stockholders.
Anti-Takeover Measures
Delaware Law
Section 203 of the Delaware General
Corporation Law is applicable to takeovers of certain Delaware corporations, including us. Subject to exceptions enumerated in
Section 203, Section 203 provides that a corporation shall not engage in any business combination with any “interested
stockholder” for a three-year period following the date that the stockholder becomes an interested stockholder unless:
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prior to that date, the board of directors of the
corporation approved either the business combination or the transaction that resulted
in the stockholder becoming an interested stockholder;
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upon consummation of the transaction that resulted
in the stockholder becoming an interested stockholder, the interested stockholder owned
at least 85% of the voting stock of the corporation outstanding at the time the transaction
commenced, though some shares may be excluded from the calculation; or
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on or subsequent to that date, the business combination
is approved by the board of directors of the corporation and by the affirmative votes
of holders of at least two-thirds of the outstanding voting stock that is not owned by
the interested stockholder.
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Except as specified in Section 203,
an interested stockholder is generally defined to include any person who, together with any affiliates or associates of that person,
beneficially owns, directly or indirectly, 15% or more of the outstanding voting stock of the corporation, or is an affiliate or
associate of the corporation and was the owner of 15% or more of the outstanding voting stock of the corporation, any time within
three years immediately prior to the relevant date. Under certain circumstances, Section 203 makes it more difficult for an
interested stockholder to effect various business combinations with a corporation for a three-year period, although the stockholders
may elect not to be governed by this section, by adopting an amendment to the certificate of incorporation or by-laws, effective
12 months after adoption. Our amended and restated certificate of incorporation and our restated by-laws do not opt out from the
restrictions imposed under Section 203. We anticipate that the provisions of Section 203 may encourage companies interested
in acquiring us to negotiate in advance with the board because the stockholder approval requirement would be avoided if a majority
of the directors then in office excluding an interested stockholder approve either the business combination or the transaction
that resulted in the stockholder becoming an interested stockholder. These provisions may have the effect of deterring hostile
takeovers or delaying changes in control, which could depress the market price of our common stock and deprive stockholders of
opportunities to realize a premium on shares of common stock held by them.
Charter and By-Law Provisions
In addition to the board of directors’
ability to issue shares of preferred stock, our amended and restated certificate of incorporation and restated by-laws contain
the following provisions that may have the effect of discouraging unsolicited acquisition proposals:
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our restated by-laws classify the board of directors
into three classes with staggered three-year terms;
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under our restated by-laws, our board of directors
may enlarge the size of the board and fill the vacancies;
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our restated by-laws provide that a stockholder may
not nominate candidates for the board of directors at any annual or special meeting unless
that stockholder notifies us of its intention a specified period in advance and provides
us with certain required information;
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stockholders who wish to bring business before the
stockholders at our annual meeting must provide advance notice; and
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our restated by-laws provide that special meetings
of stockholders may only be called by our board of directors or by an officer so instructed
by our board.
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Our restated by-laws also provide that,
unless we consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware will be the
sole and exclusive forum for:
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any derivative action or proceeding brought on our
behalf;
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any action asserting a claim of breach of a fiduciary
duty owed by any director, officer or other employee of the company to us or our stockholders;
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any action asserting a claim arising pursuant to any
provision of the Delaware General Corporation Law; or
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any action asserting a claim governed by the internal
affairs doctrine.
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Our restated by-laws further provide that
any person or entity purchasing or otherwise acquiring any interest in shares of capital stock of the company is deemed to have
notice of and consented to the foregoing provision.
Shareholder Protection Rights Agreement
Our board of directors adopted a Shareholder
Protection Rights Agreement, or Rights Agreement, dated April 16, 1997, as amended, between us and American Stock Transfer &
Trust Co., as Rights Agent. The Rights Agreement will expire on April 16, 2022, unless renewed or extended by our board of
directors. A series of our preferred stock, designated as Series A Junior Participating Preferred Stock, par value $0.01 per share,
was created in accordance with the Rights Agreement. The Rights Agreement is designed to deter coercive takeover tactics, including
the accumulation of shares in the open market or through private transactions, and to prevent an acquirer from gaining control
of us without offering a fair and adequate price and terms to all of our stockholders. As such, the Rights Agreement is intended
to enhance our board of directors’ ability to protect stockholder interests and help to assure that stockholders receive
fair and equal treatment in the event any proposed takeover of our company is made in the future. Pursuant to the Rights Agreement,
our board of directors declared a dividend distribution of one preferred stock purchase right for each outstanding share of our
common stock. The preferred stock purchase rights are attached to, and trade with, our common stock. The purchase rights are exercisable
only upon the occurrence of certain triggering events described in the Rights Agreement.
Transfer Agent
The transfer agent for our common stock
is American Stock Transfer & Trust Company, 40 Wall Street, New York, New York 10005.
SELLING SECURITY HOLDER
Selling Security Holder Table
The following table sets forth, to
our knowledge, information regarding the ownership of our common stock by the selling security holder as of March 15, 2017. Beneficial
ownership is determined in accordance with the rules of the SEC, and generally includes voting or investment power with respect
to shares. The percentage ownership reflected in the table is based on 117,322,895 shares of our common stock outstanding as of
March 15, 2017, plus the shares issuable upon exercise of any warrants, including the November 2013 warrants, options or
convertible securities held by the selling security holder (which are indicated by footnote) that are exercisable or convertible
within 60 days of March 15, 2017. Except as otherwise indicated, to our knowledge, the selling security holder has sole voting
and investment power with respect to the shares shown. For purposes of the following table, we have assumed that the selling security
holder will sell all the shares being offered pursuant to this prospectus. An asterisk denotes beneficial ownership of less than
1%.
The selling security holder has advised
us that it currently intends to sell the shares set forth below pursuant to this prospectus. Before a security holder not named
below may use this prospectus in connection with an offering of shares, this prospectus must be amended or supplemented to include
the name and number of shares beneficially owned by the selling security holder and the number of shares to be offered. Any amended
or supplemented prospectus also will disclose whether any selling security holder named in that amended or supplemented prospectus
has held any position, office or other material relationship with us or any of our predecessors or affiliates during the three
years prior to the date of the amended or supplemented prospectus.
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Beneficial Ownership
Before Offering
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Beneficial Ownership
After Offering
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Name
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Number of Shares
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Number of
Shares
Being
Offered
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Number of
Shares
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Percent
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Emmanuel Strategic
Partners Inc.
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750,000
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(1)
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250,000
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500,000
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*
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(1)
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Includes 250,000 shares issuable upon exercise
of the 2013 warrants.
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Relationships with Selling Security Holder
We and the selling security holder
are party to a consulting agreement dated November 10, 2012 pursuant to which we engaged the selling security holder to provide
such investor awareness and business advisory consulting services as we may request. The consulting agreement was amended as of
March 17, 2015 to extend the term of the consulting agreement to November 10, 2018.
The November 2013 warrants were issued
to the selling security holder in consideration of its services under the consulting agreement. In connection with the March 17,
2015 amendment to the consulting agreement, the exercise period of the November 2013 warrants was extended to November 10,
2018.
Other than as described above, the selling
security holder has had no position, office or other material relationship with us or any of our affiliates within the past three
years.
PLAN OF DISTRIBUTION
The purpose of this prospectus is to permit
the selling security holder, if it desires, to dispose of some or all of the shares of our common stock it may acquire upon exercise
of the November 2013 warrants at such times and at such prices as it may choose. Whether sales of shares will be made, and the
timing and amount of any sale made, is within the sole discretion of the selling security holder. The selling security holder and
its pledgees, assignees and successors-in-interest may, from time to time, sell any or all of their shares of common stock on The
NASDAQ Capital Market, or any other stock exchange, market or trading facility on which the shares are traded, or in private transactions.
These sales may be at fixed or negotiated prices. The selling security holder may use any one or more of the following methods
when selling shares:
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Ordinary brokerage transactions and transactions in
which the broker dealer solicits purchasers.
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Block trades in which the broker dealer will attempt
to sell the shares as agent but may position and resell a portion of the block as principal
to facilitate the transaction.
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Purchases by a broker dealer as principal and resale
by the broker dealer for its account.
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An exchange distribution in accordance with the rules
of the applicable exchange.
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Privately negotiated transactions.
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Settlement of short sales entered into after the effective
date of the registration statement of which this prospectus is a part.
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Broker dealers may agree with the selling security
holder to sell a specified number of such shares at a stipulated price per share.
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Through the writing or settlement of options or other
hedging transactions, whether through an options exchange or otherwise.
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Any combination of any of the foregoing methods of
sale.
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Any other method permitted pursuant to applicable
law.
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The selling security holder may also sell
shares under Rule 144 under the Securities Act of 1933, as amended, or the Securities Act, if available, rather than under this
prospectus.
Broker dealers engaged by selling security
holder may arrange for other brokers dealers to participate in sales. Broker dealers may receive commissions or discounts from
the selling security holder (or, if any broker dealer acts as agent for the purchaser of shares, from the purchaser) in amounts
to be negotiated, but in the case of an agency transaction not in excess of a customary brokerage commission in compliance with
NASDR Rule 2440 and in the case of a principal transaction a markup or markdown in compliance with NASDR IM-2440.
In connection with the sale of the shares,
the selling security holder may enter into hedging transactions with broker-dealers or other financial institutions, which may
in turn engage in short sales of our common stock in the course of hedging the positions they assume. The selling security holder
may also sell shares short after the effective date of the registration statement of which this prospectus is a part and may deliver
the shares described in this prospectus to close out their short positions, or loan or pledge the common stock to broker-dealers
that in turn may sell these shares. The selling security holder may also enter into option or other transactions with broker-dealers
or other financial institutions or the creation of one or more derivative securities which require the delivery to such broker-dealer
or other financial institution of shares described in this prospectus, which shares such broker-dealer or other financial institution
may resell pursuant to this prospectus (as supplemented or amended to reflect such transaction).
The selling security holder and any broker-dealers
or agents that are involved in selling the shares may be deemed to be “underwriters” within the meaning of the Securities
Act in connection with such sales. In such event, any commissions received by such broker-dealers or agents and any profit on the
resale of the shares purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act. The
selling security holder has informed us that it does not have any written or oral agreement or understanding, directly or indirectly,
with any person to distribute the shares being offered by means of this prospectus.
We will pay the fees and expenses of the
registration of the shares being offered by the selling security holder.
Because the selling security holder may
be deemed to be an “underwriter” within the meaning of the Securities Act, it will be subject to the prospectus delivery
requirements of the Securities Act, including Rule 172 thereunder. There is no underwriter or coordinating broker acting in connection
with the proposed sale of the shares by the selling security holder.
The shares will be sold only through registered
or licensed brokers or dealers if required under applicable state securities laws. In addition, in certain states, the shares may
not be sold unless they have been registered or qualified for sale in the applicable state or sold in compliance with an available
exemption from registration or qualification.
Under applicable rules and regulations
under the Securities Exchange Act of 1934, or the Exchange Act, any person engaged in the distribution of the shares being offered
by the selling security holder may not simultaneously engage in market making activities with respect to our common stock for the
applicable restricted period, as defined in Regulation M under the Exchange Act, prior to the commencement of the distribution.
In addition, the selling security holder will be subject to applicable provisions of the Exchange Act and the rules and regulations
thereunder, including Regulation M, which may limit the timing of purchases and sales of shares by the selling security holder
or any other person. We will make copies of this prospectus available to the selling security holder and have informed it of the
need to deliver a copy of this prospectus to each purchaser at or prior to the time of the sale.
WHERE YOU CAN FIND MORE INFORMATION
We file annual, quarterly and current reports,
proxy statements and other information with the SEC. Our SEC filings are available to the public over the Internet at the SEC’s
website at http://www.sec.gov. The SEC’s website contains reports, proxy and information statements and other information
regarding issuers such as us that file electronically with the SEC. You may also read and copy any document we file with the SEC
at the SEC’s Public Reference Room at 100 F Street, N.E., Room 1580, Washington, D.C. 20549, and may obtain copies of these
documents at prescribed rates by writing to the SEC. Please call the SEC at 1-800-SEC-0330 for further information on the operation
of its Public Reference Room.
Information about us is also available
at our website at www.cytrx.com; however, information on our website is not incorporated into this prospectus and is not a part
of this prospectus.
INCORPORATION OF CERTAIN DOCUMENTS BY
REFERENCE
The SEC allows us to “incorporate
by reference” the information we have filed with it, which means that we can disclose important information to you by referring
you to another document that we have filed separately with the SEC. You should read the information incorporated by reference because
it is an important part of this prospectus. Any statement in a document we incorporate by reference into this prospectus will be
considered to be modified or superseded to the extent a statement contained in this prospectus or any other subsequently filed
document that is incorporated by reference into this prospectus modifies or supersedes that statement. The modified or superseded
statement will not be considered to be a part of this prospectus, except as modified or superseded.
We incorporate by reference the following
information or documents that we have filed with the SEC (excluding those portions of any documents that are “furnished”
and not “filed” in accordance with SEC rules):
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our Annual Report on Form 10-K for the year ended
December 31, 2016 filed with the SEC on March 15, 2017;
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our Current Reports on Form 8-K and Form 8-K/A
filed with the SEC on January 6, 2017, January 13, 2017, February 24,
2017 and March 15, 2017, respectively;
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the description of our securities as described in
our Registration Statement on Form 8-A filed under the Exchange Act on March 17,
1987 (File No. 000-15327), and any amendment or report filed for the purpose of updating
any such description; and
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the description of our Series A Junior Participating
Preferred Stock Purchase Rights as described in our Registration Statement on Form 8-A
filed under the Exchange Act on April 17, 1997 (File No. 000 15327), and any amendment
or report filed for the purpose of updating any such descriptions.
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We also incorporate by reference all
documents filed by us pursuant to Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act after the date on which we filed the
registration statement of which this prospectus is a part and prior to the termination of this offering (excluding those portions
of any document that are “furnished” and not “filed” in accordance with SEC rules).
Statements made in this prospectus or in
any document incorporated by reference in this prospectus as to the contents of any contract or other document referred to herein
or therein are not necessarily complete, and in each instance reference is made to the copy of such contract or other document
filed as an exhibit to the documents incorporated by reference, each such statement being qualified in all material respects by
such reference.
You may obtain a copy of the foregoing
documents from us without charge by writing or calling us at the following address and telephone number: 11726 San Vicente Blvd.,
Suite 650 Los Angeles, California 90049, Attention: Corporate Secretary; (310) 826-5648.
LEGAL MATTERS
The validity of the shares being offered
hereby has been passed upon by TroyGould PC, Los Angeles, California. TroyGould PC and some of its attorneys own shares of our
common stock constituting in the aggregate less than 1% of our outstanding shares of common stock.
EXPERTS
The financial statements and schedule
as of December 31, 2016 and 2015 and for each of the three years in the period ended December 31, 2016 and management’s
assessment of the effectiveness of internal control over financial reporting as of December 31, 2016 incorporated by reference
in this prospectus have been so incorporated in reliance on the reports of BDO USA, LLP, an independent registered public
accounting firm, incorporated herein by reference, given on the authority of said firm as experts in auditing and accounting.
PROSPECTUS
250,000 Shares
Common
Stock
The date of
this prospectus is _________________, 2017
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
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ITEM 14.
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OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION
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We estimate that the expenses incurred
in connection with the distribution described in this registration statement will be as set forth below. We will bear all of such
expenses.
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SEC registration fee
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$
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17,327
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Transfer agent fees and expenses
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*
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The NASDAQ Capital Market listing fees
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*
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FINRA corporate filing fees
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*
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Accounting fees and expenses
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$
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25,000
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Legal fees and expenses
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*
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Printing expenses
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*
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Miscellaneous
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*
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Total
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$
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42,327
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*
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Estimated expenses, if any, not presently known.
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ITEM 15.
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INDEMNIFICATION OF DIRECTORS AND OFFICERS
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Section 102(b)(7) of the Delaware
General Corporation Law authorizes a corporation in its certificate of incorporation to eliminate or limit personal liability of
directors of the corporation for violations of the directors’ fiduciary duty of care. However, directors remain liable for
breaches of duties of loyalty, failing to act in good faith, engaging in intentional misconduct, knowingly violating a law, paying
a dividend or approving a stock repurchase which was illegal under Delaware General Corporation Law Section 174 or obtaining
an improper personal benefit. In addition, equitable remedies for breach of fiduciary duty of care, such as injunction or recession,
are available.
Our amended and restated certificate of
incorporation eliminates the personal liability of the members of our board of directors to the fullest extent permitted by law.
Specifically, Article Eleven of our amended and restated certificate of incorporation provides as follows:
A director of the corporation shall not be personally
liable to the corporation or its security holders for monetary damages for breach of fiduciary duty as a director, except for
liability (i) for any breach of the director’s duty of loyalty to the corporation or its security holders, (ii) for
acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law, (iii) under Section 174
of the Delaware General Corporation Law, or (iv) for any transaction from which the director derived any improper personal
benefit. If the Delaware General Corporation Law is amended after approval by the security holders of this Article to authorize
corporate action further eliminating or limiting the personal liability of directors, then the liability of a director of the
corporation shall be eliminated or limited to the fullest extent permitted by the Delaware General Corporation Law as so amended.
Any repeal or modification of the foregoing
paragraph by the security holders of the corporation shall not adversely affect any right or protection of a director of the corporation
existing at the time of such repeal or modification.
In addition, our amended and restated certificate
of incorporation and restated by-laws provide for indemnification of our officers and directors to the fullest extent permitted
by law. In particular, Article Nine of our amended and restated certificate of incorporation provides as follows:
The corporation shall, to the fullest extent
permitted by Section 145 of the General Corporation Law of the State of Delaware, as the same may be amended and supplemented,
indemnify any and all persons whom it shall have power to indemnify under said section from and against any and all of the expenses,
liabilities or other matters referred to in or covered by said section, and the indemnification provided for herein shall not
be deemed exclusive of any other rights to which those indemnified may be entitled under any bylaw, agreement, vote of security
holders or disinterested directors or otherwise, both as to action in his official capacity and as to action in another capacity
while holding such office, and shall continue as to a person who has ceased to be a director, officer, employee or agent and shall
inure to the benefit of the heirs, executors and administrators of such a person.
Section 145 of the Delaware General
Corporation Law empowers a corporation to indemnify any person who was or is party or is threatened to be made a party to any threatened,
pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact
that he is or was a director, officer or agent of the corporation or another enterprise if serving at the request of the corporation.
Depending on the character of the proceeding, a corporation may indemnify against expenses (including attorneys’ fees), judgments,
fines and amounts paid in settlement actually and reasonably incurred in connection with such action, suit or proceeding if the
person indemnified acted in good faith in respect to any criminal action or proceeding, had no reasonable cause to believe his
conduct was unlawful. In the case of an action by or in the right of the corporation, no indemnification may be made with respect
to any claim, issue or matter as to which such person shall have been adjudged to be liable to the corporation unless and only
to the extent that the Court of Chancery or the court in which such action or suit was brought shall determine that despite the
adjudication of liability such person is fairly and reasonably entitled to indemnity for such expenses which the court shall deem
proper. Section 145 further provides that to the extent a director, officer, employee or agent of a corporation has been successful
in the defense of any action, suit or proceeding referred to above or in the defense of any claim, issue or matter therein, he
shall be indemnified against expenses (including attorneys’ fees) actually and reasonably incurred by him in connection therewith.
Our restated by-laws permit us to purchase insurance on behalf of such person against any liability asserted against him and incurred
by him in any such capacity, or arising out of his status as such, whether or not we would have the power to indemnify him against
such liability under the foregoing provision of the restated by-laws.
We have entered into indemnification
agreements with each of our directors and officers under which we agree, in effect, to indemnify them to the fullest extent permitted
by Delaware law.
We also hold an insurance policy covering
directors and officers under which the insurer agrees to pay, with some exclusions, for any claim made against our directors and
officers for a wrongful act that they may become legally obligated to pay or for which we are is required to indemnify our directors
or officers.
Insofar as indemnification for liabilities
arising under the Securities Act of 1933, as amended, or the Securities Act, may be permitted for directors, officers and controlling
persons of the Company under the above provisions, or otherwise, the Commission has advised us that, in its opinion, such indemnification
is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification
against such liabilities (other than the payment by the Company of expenses incurred or paid by a director, officer or controlling
person of the Company in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling
person in connection with the securities being registered, the Company will, unless in the opinion of its counsel the matter has
been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification
by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.
The exhibits listed in the accompanying
Exhibit Index are filed or incorporated by reference as part of this registration statement.
(a) The undersigned registrant hereby undertakes:
(1) To file, during any period in
which offers or sales are being made, a post-effective amendment to this registration statement:
(i) To
include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;
(ii) To
reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent
post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set
forth in the registration statement; notwithstanding the foregoing, any increase or decrease in the volume of securities offered
(if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or
high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Securities and Exchange
Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20 percent
change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective
registration statement; and
(iii) To
include any material information with respect to the plan of distribution not previously disclosed in the registration statement
or any material change to such information in the registration statement; provided, however, that paragraphs (a)(1)(i), (a)(1)(ii)
and (a)(1)(iii) of this section do not apply if the registration statement is on Form S-3 and the information required to be included
in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the Securities and Exchange
Commission by the registrant pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 that are incorporated
by reference in the registration statement, or is contained in a form of prospectus filed pursuant to Rule 424(b) that is part
of the registration statement.
(2)
That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall
be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at
that time shall be deemed to be the initial bona fide offering thereof.
(3)
To remove from registration by means of a post-effective amendment any of the securities being registered which
remain unsold at the termination of the offering.
(4)
That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser:
(i)
Each prospectus filed by the registrant pursuant to Rule 424(b)(3) shall be deemed to be part of the registration
statement as of the date the filed prospectus was deemed part of and included in the registration statement; and
(ii)
Each prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5), or (b)(7) as part of a registration statement in
reliance on Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), (vii), or (x) for the purpose of providing
the information required by Section 10(a) of the Securities Act of 1933 shall be deemed to be part of and included in the
registration statement as of the earlier of the date such form of prospectus is first used after effectiveness or the date of
the first contract of sale of securities in the offering described in the prospectus. As provided in Rule 430B, for liability
purposes of the issuer and any person that is at that date an underwriter, such date shall be deemed to be a new effective date
of the registration statement relating to the securities in the registration statement to which that prospectus relates, and the
offering of such securities at that time shall be deemed to be the initial bona fide offering thereof; provided, however, that
no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated
or deemed incorporated by reference into the registration statement or prospectus that is a part of the registration statement
will, as to a purchaser with a time of contract sale prior to such effective date, supersede or modify any statement that was
made in the registration statement or prospectus that was a part of the registration statement or made in any such document immediately
prior to such effective date.
(5)
That, for the purpose of determining liability of the registrant under the Securities Act of 1933 to any
purchaser in the initial distribution of securities, the undersigned registrant undertakes that in a primary offering of securities
of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the
securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications,
the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:
(i)
Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed
pursuant to Rule 424;
(ii)
Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred
to by the undersigned registrant;
(iii)
The portion of any other free writing prospectus relating to the offering containing material information about the undersigned
registrant or its securities provided by or on behalf of the undersigned registrant; and
(iv)
Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.
(b) The undersigned registrant hereby undertakes
that, for purposes of determining any liability under the Securities Act of 1933, each filing of the registrant’s annual
report pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and (and, where applicable, each filing of
an employee benefit plan’s annual report pursuant to Section 15(d) of the Securities Exchange Act of 1934) that is incorporated
by reference in the registration statement shall be deemed to be a new registration statement relating to the securities offered
therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
(c) Insofar as indemnification for liabilities
arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant
to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Securities Act of 1933 and is, therefore, unenforceable. In the
event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred
or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding)
is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant
will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act of 1933
and will be governed by the final adjudication of such issue.
SIGNATURES
Pursuant to the requirements of the
Securities Act of 1933, the registrant certifies that it has reasonable grounds to believe that it meets all of the requirements
for filing on Form S-3 and has duly caused this Post-effective Amendment No. 2 to Registration Statement on Form S-3 to be signed
on its behalf by the undersigned, thereunto duly authorized in the City of Los Angeles, State of California, on March 20, 2017.
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CYTRX CORPORATION
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By:
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/s/ STEVEN A. KRIEGSMAN
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Steven A. Kriegsman
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Chairman and Chief Executive Officer
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Pursuant to the requirements of the
Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities and on the dates
indicated:
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Signature
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Title
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Date
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/s/ STEVEN A. KRIEGSMAN
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Chairman of the Board and Chief Executive Officer
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March 20, 2017
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Steven A. Kriegsman
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(principal executive officer)
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/s/ JOHN Y CALOZ
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Chief Financial Officer and Treasurer
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March 20, 2017
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*
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Director
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March 20, 2017
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Anita J. Chawla, Ph.D.
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/s/ EARL W. BRIEN
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Director
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March 20, 2017
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Earl W. Brien, M.D.
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*
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Director
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March 20, 2017
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Louis J. Ignarro, Ph.D.
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*
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Director
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March 20, 2017
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Eric Selter
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* By:
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/s/ STEVEN A. KRIEGSMAN
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Steven A. Kriegsman
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Attorney-in-Fact
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EXHIBIT INDEX
The following exhibits are filed herewith
or incorporated herein by reference.
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Exhibit
Number
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Description
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1.1
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Form of Underwriting Agreement.*
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3.1
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Restated Certificate of Incorporation, as amended (incorporated by reference to Exhibit
3.1 to the Registrant’s Annual Report on Form 10-K filed on March 13, 2012).
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3.2
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Certificate of Amendment of Restated Certificate of Incorporation (incorporated by reference
to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed on May 15, 2012).
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3.3
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Certificate of Designation of Preferences, Rights and Limitations of Series B Convertible Preferred Stock, pursuant
to Section 151 of the Delaware General Corporation Law (incorporated by Reference to Exhibit 3.1 to the Registrant’s
Current Report on Form 8-K filed on December 14, 2016).
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3.4
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Restated By-Laws, as amended (incorporated by reference to Exhibit 3.2 to the Registrant’s
Current Report on Form 8-K filed on July 16, 2013).
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4.1
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Shareholder Protection Rights Agreement dated April 16, 1997 between CytRx Corporation
and American Stock Transfer &Trust Company as Rights Agent (incorporated by reference to Exhibit 99.1 to the Registrant’s
Current Report on Form 8-K filed April 17, 1997).
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4.2
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Amendment No. 1 to Shareholder Protection Rights Agreement (incorporated by reference
to Exhibit 4.2 to the Registrant’s Annual Report on Form 10-K filed on April 1, 2002).
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4.3
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Amendment No. 2 to Shareholder Protection Rights Agreement (incorporated by reference
to Exhibit 4.3 to the Registrant’s Annual Report on Form 10-K filed on April 2, 2007).
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4.4
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Amendment No. 3 to Shareholder Protection Rights Agreement (incorporated by reference
to Exhibit 4.1 to the Registrant’s Quarterly Report on Form 10-Q filed on November 7, 2016).
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4.5
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Form of Common Stock Certificate (incorporated by reference to Exhibit 4.1 to the Registrant’s
Current Report on Form 8-K filed on December 14, 2016).
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4.6
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Form of Preferred Stock Certificate.*
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4.7
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Certificate of Determination regarding the rights, preferences, privileges and restrictions
with respect to Preferred Stock.*
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4.8
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Form of Warrant for Common Stock or Preferred Stock.*
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4.9
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Form of Warrant Agreement for Common Stock or Preferred Stock.*
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4.10
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Form of Unit Agreement.*
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5.2
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Opinion of TroyGould PC**
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23.1
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Consent of TroyGould PC (included in Exhibit 5.1).
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23.2
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Consent of BDO USA, LLP.
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24.1
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Power of Attorney **
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24.2
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Power of Attorney
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*
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To be filed, if applicable, subsequent to the effectiveness
of this registration statement (1) by an amendment to this registration statement
or (2) as an exhibit to a Current Report on Form 8-K and incorporated herein by
reference.
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**
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Previously filed.
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