(By Balachander) Celsion Corp. (NASDAQ: CLSN) shares tumbled more than 10 percent on Monday after the oncology drug development company disclosed that it has entered into an agreement with Cantor Fitzgerald & Co to sell $25 million worth of shares.
Under the agreement, the company said on Friday it may offer and sell through Cantor shares of common stock having an aggregate offering price of up to $25.0 million.
The Lawrenceville, New Jersey-based company said it plans to use the net proceeds for research and development activities, capital expenditures and working capital.
Pending the application of the net proceeds, Celsion said it intends to invest the net proceeds in short-term, investment grade, interest-bearing securities.
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Last Thursday, the company's stock tumbled by more than 80 percent after a late-stage study of Celsion's lead liver cancer candidate ThermoDox did not meet its primary endpoint.
Celsion is working to develop and commercialize more efficient and effective targeted chemotherapeutic oncology drugs based on our proprietary heat-activated liposomal technology.
The company projects its unaudited cash and investment balance to be roughly $23 million as of December 31, 2012 and around $27 million as of January 31, 2013.
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CLSN shares have been trading in the 52-week range between $1.13 and $9.44.