LOS ANGELES, Dec. 13, 2016 /PRNewswire/ -- CytRx Corporation
(NASDAQ: CYTR), a biopharmaceutical research and development company specializing in oncology, today announced that it has
entered into securities purchase agreements with existing institutional investors to purchase shares of our common stock at a
purchase price of $0.42 per share in a registered direct offering with gross proceeds of
$8.1 million. To the extent that the purchase of shares of common stock would result in
beneficial ownership above 4.99%, an investor may elect to purchase shares of our Series B convertible preferred stock in lieu of
common stock. Each share of preferred stock has a conversion price of $0.42 and no dividend
rights. The offering is expected to close on or about December 16, 2016, subject to the
satisfaction of customary closing conditions.
Rodman & Renshaw, a unit of H.C. Wainwright & Co., acted as exclusive placement agent
for the offering.
We also have agreed in the securities purchase agreements that, for each share of common stock (or each share underlying the
shares of convertible preferred stock) purchased in this offering, a corresponding number of warrants of CytRx that were issued
to the existing institutional investors in July 2016 will be amended to have an exercise price of
$0.5055 per share and the term of exercise will be extended by twelve months.
After deducting the placement agent's commission and other estimated offering expenses payable by CytRx, the net proceeds to
CytRx are anticipated to be approximately $7.4 million. CytRx intends to use the net proceeds
from the offering for working capital and general corporate purposes.
The shares of common stock, convertible preferred stock and shares underlying the convertible preferred stock are being
offered pursuant to a shelf registration statement on Form S-3, as amended (File No. 333-208803), that was previously filed with
the Securities and Exchange Commission (SEC) and declared effective on June 17, 2016. The
securities may be offered only by means of a prospectus. CytRx will file a prospectus supplement in connection with the
amendment to the warrants. The prospectus and a final prospectus supplement related to the offering have been filed with
the SEC and are available on the SEC's website located at http://www.sec.gov and may also be obtained from H.C. Wainwright & Co. by
calling (212) 356-5707 or emailing placements@hcwco.com.
This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, nor may there be any sale of
these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such state or jurisdiction.
About CytRx Corporation
CytRx Corporation is a biopharmaceutical research and development company specializing in oncology. CytRx currently is focused
on the clinical development of aldoxorubicin, its albumin-binding conjugate of doxorubicin. CytRx is also expanding its
pipeline of oncology candidates at its laboratory facilities in Freiburg, Germany, through its
LADR™ (Linker Activated Drug Release) technology platform, a discovery engine designed to leverage CytRx's expertise in albumin
biology and linker technology for the development of a new class of anti-cancer therapies.
Forward-Looking Statements
This press release contains statements that are forward-looking statements within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended, including with respect to the completion, timing and size of the public offering. Such
statements involve risks and uncertainties, such as the risk that the conditions to the closing of the offering will not be
satisfied and that the offering will not be completed, risks relating to the timing and final results of CytRx's clinical testing
of aldoxorubicin, timing of CytRx's preparation and submission of an NDA for aldoxorubicin for the treatment of STS and FDA
acceptance and review of any NDA, the risk that CytRx may be unsuccessful in obtaining FDA approval or, if approval is obtained,
in commercializing aldoxorubicin in the United States or elsewhere, and other risks detailed in
CytRx's most recent annual and quarterly reports filed with the SEC and current reports filed with the SEC since the filing of
CytRx's most recent annual report. All forward-looking statements are based upon information available to CytRx on the date the
statements are first published. CytRx undertakes no obligation to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
Company Contact:
CytRx Corporation
David J. Haen
Vice President, Business Development and Investor Relations
(310) 826-5648, ext. 304
dhaen@cytrx.com
Media Contact:
Argot Partners
Eliza Schleifstein
(973) 361-1546
eliza@argotpartners.com
Investor Relations Contact:
Argot Partners
Michelle Carroll
(212) 600-1902
michelle@argotpartners.com
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SOURCE CytRx Corporation