Cyclacel Announces $3.0 Million Financing to Fund Ongoing Litigation Expenses on Certain Intellectual Property
Cyclacel Pharmaceuticals, Inc. (Nasdaq: CYCC) today announced that the Company entered into a purchase agreement with certain existing institutional stockholders raising $3,036,000 in gross proceeds. The proceeds from the financing will be used to fund ongoing litigation-related expenses on certain intellectual property and otherwise for general corporate purposes.
Under the terms of the purchase agreement, the investors purchased 4,688,079 shares of the Company's common stock at a price of $0.6476, which is equal to the 10-day average closing price of the Company's common stock for the period ending on Wednesday, March 21, 2012. In addition to the common stock, investors received contractual rights to receive in cash 10% of any future litigation settlement on certain intellectual property, subject to a cap, or alternatively, in lieu of a cash payment, either warrants to purchase common stock in certain situations or additional shares as part of any settlement in a possible related, alternative transaction. The shares issued at closing are subject to a lock-up period of one year from the date of issuance.
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