Cyclacel Pharmaceuticals Inc (NASDAQ:CYCC)
Shares of Cyclacel Pharmaceuticals Inc (NASDAQ:CYCC) shed nearly half of their market value after the company reiterated plans to raise $13.2 million in a public offering. Investors reacted negatively to the news by sending the stock plunging by over 40% to $1.75 a share.
Cyclacel Pharmaceuticals Inc (NASDAQ:CYCC) remains the subject of immense selling pressure. The stock is currently trading in a tight $1.72 to $1.80 trading range as it closes in on its 52-week low of $1.72 a share. The recent sell-off appears to be fueled by growing concerns about the company’s financial health.
The biopharmaceutical company develops and commercializes small molecule drugs for the treatment of cancer. Cyclacel Pharmaceuticals Inc. (NASDAQ:CYCC) oncology program includes Sapacitabine that is currently in a Phase III trial as a treatment for myeloid leukemia.
Cyclacel Public Offering
Cyclacel Pharmaceuticals Inc (NASDAQ:CYCC) plans to raise $13.2 million in gross proceeds on the pricing of Class A units at $2 a unit. Each unit comprises of one share of common stock and a seven-year warrant for the purchase of one common stock with an exercise price of $2 a share. The company is also offering Class B units at a price of $1,000 a unit, comprised of one share of preferred stock convertible into 500 shares of common stock.
Cyclacel Pharmaceuticals Inc (NASDAQ:CYCC) has also offered underwriters a 45-day option to purchase up to 990,000 shares of common stock. The offering could see an issuance totaling 2,164,000 shares of common stock, and 8,872 shares of preferred stock convertible to 4,436,000 shares sold to investors. Ladenburg Thalmann & Co. Inc. is acting as the sole book running manager in connection with the offering. The offering should close on or about July 21, 2017.
Separately, Cyclacel Pharmaceuticals Inc. (NASDAQ:CYCC) has extended the contract of its Chief Executive Officer Spiro Robotics. The executive is to remain at the helm until December 31, 2017. Terms of his employment remain unchanged. The company extended the contract of Chief Financial Officer, Paul MacBarron until December 31, 2017. Cyclacel Pharmaceuticals Inc (NASDAQ:CYCC) has also entered into indemnification agreements with each of its directors and executive officers.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.