Why Cyclacel Pharmaceuticals (CYCC) Shares Are Getting Obliterated

Cyclacel Pharmaceuticals Inc CYCC shares are trading lower by 26.9% to $2.63 Friday morning after the company announced it finalized an agreement to sell 388,200 shares of its common stock at $3.315 per share in a registered direct offering on Nasdaq.

Additionally, they'll issue warrants to purchase 388,200 shares with an exercise price of $3.19 per share, exercisable for seven years. Concurrently, in a private placement, 7,956 shares will be sold to management at the same price, accompanied by warrants.

Ladenburg Thalmann & Co. Inc. is facilitating the offering. The expected gross proceeds are about $1.3 million, which the company plans to use for general purposes and working capital.

The closing of the offering is slated around December 26, contingent upon standard closing conditions being met.

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According to data from Benzinga Pro, CYCC has a 52-week high of $54.60 and a 52-week low of $27.85.