LOS ANGELES, May 11, 2018 /PRNewswire/ -- CytRx Corporation
(Nasdaq: CYTR), a biopharmaceutical research and development
company specializing in oncology, today announced that it has
entered into definitive purchase agreements with certain
institutional investors to sell in a registered direct offering
5,600,000 shares of its common stock, at a purchase price of
$1.25 per share, resulting in gross
proceeds of $7.0 million. The
offering is expected to close on or about May 15, 2018, subject to customary closing
conditions.
H.C. Wainwright & Co. acted as the exclusive placement agent
for the offering.
After deducting the placement agent's fees and estimated
offering expenses, the net proceeds to CytRx are expected to be
approximately $6.5 million. CytRx
intends to use the net proceeds from the offering for working
capital and general corporate purposes, including possible new drug
discovery activities and acquisitions or mergers.
The shares of common stock are being sold pursuant to a "shelf"
registration statement on Form S-3 that was previously filed with
the Securities and Exchange Commission (SEC) and declared effective
on April 21, 2017. Such shares may be
offered only by means of a prospectus, including a prospectus
supplement, forming a part of the effective registration statement.
A final prospectus supplement and the accompanying base prospectus
related to the offering will be filed with the SEC, and will be
available on the SEC's website located
at https://www.sec.gov and may also be obtained from H.C.
Wainwright & Co., LLC, 430 Park Avenue, 3rd Floor,
New York, New York 10022, by
calling (646) 975-6996 or emailing placements@hcwco.com.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy these securities, nor shall there
be any sale of these securities in any state or other jurisdiction
in which such offer, solicitation or sale would be unlawful prior
to the registration or qualification under the securities laws of
any such state or other jurisdiction.
About CytRx Corporation
CytRx Corporation (Nasdaq: CYTR) is a biopharmaceutical Company
specializing in research and clinical development of novel
anti-cancer drug candidates that employ linker technologies to
enhance the accumulation and release of drug at the tumor. CytRx is
rapidly expanding its pipeline of ultra-high potency oncology
candidates at its laboratory facilities in Freiburg, Germany, through its LADR™ (Linker Activated
Drug Release) technology platform, a discovery engine designed to
leverage CytRx's expertise in albumin biology and linker technology
for the development of a new class of potential breakthrough
anti-cancer therapies. Aldoxorubicin, CytRx's most advanced drug
conjugate, is an improved version of the widely used anti-cancer
drug doxorubicin and has been out-licensed to NantCell, Inc.
Forward-Looking Statements
This press release contains forward-looking statements. Such
statements involve risks and uncertainties that could cause actual
events or results to differ materially from the events or results
described in the forward-looking statements, including risks and
uncertainties relating to statements regarding CytRx's expectations
with respect to the completion, timing and size of the offering,
the expected proceeds from the offering and the anticipated use of
the proceeds from the offering, the ability of NantCell, Inc., to
obtain regulatory approval for its products that use aldoxorubicin;
the ability of NantCell, Inc., to manufacture and commercialize
products or therapies that use aldoxorubicin; the amount, if any,
of future milestone and royalty payments that we may receive from
NantCell, Inc.; CytRx's ability to develop new ultra-high potency
drug candidates based on our LADR™ technology platform; and other
risks and uncertainties described in the most recent annual and
quarterly reports filed by CytRx with the Securities and Exchange
Commission and current reports filed since the date of CytRx's most
recent annual report. All forward-looking statements are based upon
information available to CytRx on the date the statements are first
published. CytRx undertakes no obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
Investor Relations Contact:
Argot Partners
Michelle Carroll
(212) 600-1902
michelle@argotpartners.com
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SOURCE CytRx Corporation