Cell Therapeutics Announces Institutional Investors Purchase $20M of Preferred Stock and Warrants

Cell Therapeutics, Inc.

today announced that it has entered into an agreement to sell, subject to customary closing conditions, $20 million of shares of its Series 14 Preferred Stock and warrants to purchase shares of its common stock in a registered offering to two institutional investors. Each share of Series 14 Preferred Stock is convertible at the option of the holder, at any time during its existence, into approximately 870 shares of common stock at a conversion price of $1.15 per share of common stock, for a total of approximately 17,391,304 shares of common stock. In connection with the offering, the investors received warrants to purchase up to 6,956,522 shares of common stock. The warrants have an exercise price of $1.45 per warrant share, for total potential additional proceeds to the Company of approximately $10.1 million upon exercise of the warrants for cash. The warrants are exercisable beginning six months and one day after the date of issuance and expire five years and one day after the date of issuance.