BERKELEY HEIGHTS, N.J., July 30, 2009 (GLOBE NEWSWIRE) -- Cyclacel Pharmaceuticals, Inc. (Nasdaq:CYCC) (Nasdaq:CYCCP) ("Cyclacel" or the "Company") announced today that it completed its previously announced registered direct offering through the sale of shares of its common stock and warrants for gross proceeds of $3.4 million, before deducting placement agent fees and offering expenses, in a registered direct offering with select institutional investors led by Special Situations Fund. The offer included the sale and issuance of 4.0 million units, at a purchase price of $0.85 per unit, with each unit consisting of (i) one share of the Company's common stock, (ii) a five-year warrant to purchase 0.18 shares of common stock, at an exercise price of $1.00 per share, exercisable beginning six months after the date of issuance, and (iii) a seven-month warrant to purchase 0.625 shares of common stock, at an exercise price of $1.00 per share, exercisable beginning six months after the date of issuance. If fully exercised, the seven-month warrants would produce additional gross proceeds of $2.5 million. In the aggregate, the warrants represent the right to acquire 3,235,522 shares of common stock, with 2,500,000 representing the seven-month warrants and the remaining 735,522 representing the five-year warrants.
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.
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.
About Cyclacel Pharmaceuticals, Inc.
Cyclacel is a diversified biopharmaceutical company dedicated to the discovery, development and commercialization of novel, mechanism-targeted drugs to treat human cancers and other serious disorders. Sapacitabine, a cell cycle modulating nucleoside analog, is in Phase 2 studies for the treatment of acute myeloid leukemia in the elderly, myelodysplastic syndromes and lung cancer and in Phase 1 in combination with seliciclib.
