April 10, 2017 4:52pm
After a 25.55% (+$0.35) advance, CYTX launched a secondary offering. Share pricing fell -34.30% (-$0.61) at the open
CYTX secured approval from the U.S. FDA for an Investigational Device Exemption (IDE) for a pilot clinical trial to evaluate its Cytori Cell Therapy in patients with thermal burn injury.
The contract was originally signed in the year 2014, and was extended in September 2016 to facilitate continued funding of CYTX’s ongoing investigation and development for treating thermal burn injuries. Under the provision, Cytori can request BARDA for additional financing to cover costs for completing pilot clinical trial after achieving Investigational Device Exemption (IDE) approval from the FDA.
With only two (2) quarters of cash left (spending $4.2 M a quarter) – it was a MUST.
The last offering, a rights offering at $2.55 raised $17.6 M and was priced at $2.77 – ten (10) months ago …
The discount was DEEP priced at $1.10 and at the open was trading at $1.14 (-$0.59) - UGLY
With 23.6 M shares outstanding, the offering would increase the total by 36.5%