(Source: PrimeNewswire)
BERKELEY HEIGHTS, N.J., July 24, 2009 (GLOBE NEWSWIRE) -- Cyclacel Pharmaceuticals, Inc. (Nasdaq:CYCC) (Nasdaq:CYCCP) ("Cyclacel" or the "Company") announced today that it has entered into definitive agreements to raise $3.4 million in gross proceeds, before deducting placement agent fees and other estimated offering expenses, and up to an additional $2.5 million, in a registered direct offering with select institutional investors led by Special Situations Fund.
"The proceeds of the financing together with our current cash, cash equivalents and marketable securities should provide the financial resources to continue clinical development of sapacitabine, the company's lead drug, including a pivotal trial in patients with hematological malignancies," said Spiro Rombotis, President and CEO of Cyclacel.
The offering includes the sale and issuance of 4.0 million units, each unit consisting of one share of the Company's common stock and a warrant to purchase 0.18 shares of common stock, at a purchase price of $0.85 per unit. The warrants, which represent the right to acquire an aggregate of 735,522 shares of common stock at an exercise price of $1.00 per share, have a five-year term from the date of issuance and are exercisable beginning six months after the date of issuance. The investors will also receive a second warrant giving them the option to purchase an additional 2,500,000 shares at a price per share of $1.00 during a period beginning six months after the date of issuance and ending seven months after the date of issuance. The units were offered and sold pursuant to a prospectus supplement dated July 24, 2009 and an accompanying prospectus dated February 12, 2007, pursuant to the Company's effective shelf registration statement previously filed with the Securities and Exchange Commission.
Lazard Capital Markets LLC served as the sole placement agent for the offering. Merriman Curhan Ford served as financial advisor. The sale is expected to close on or about July 29, 2009.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction. Any offer will be made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. Copies of the final prospectus supplement together with the accompanying prospectus can be obtained at the SEC's website at http://www.sec.gov or from Lazard Capital Markets LLC at 30 Rockefeller Plaza, 60th Floor, New York, NY, 10020.
