* Says needs to raise additional funds
* Shares fall 10 pct
(Updates share movement, adds details)
March 1 Shares of Cell Therapeutics (CTIC.O)
fell 10 percent before the bell Monday, after the company said
late Friday that its auditors had expressed "substantial doubt"
about its ability to continue as a going concern.
In its 2009 annual report filed with the U.S. Securities
and Exchange Commission, the company said it does not expect
that its existing cash and equivalents will provide sufficient
working capital to fund operations through the third quarter of
As of Dec. 31, the company had cash and equivalents of
$37.8 million. In January, the company received about $28.2
million in proceeds from a sale of preferred stock and
The company said it may seek to raise additional capital
through equity financings, partnerships, dispositions of
assets, debt financings or other sources.
The company has asked its shareholders to vote at a special
meeting on April 9 on a proposal to approve an increase in
Last month, U.S. drug reviewers questioned effectiveness
data for the company's experimental lymphoma drug and said the
medicine had substantial side effects. [ID:nN05157497]
Shares of Cell Therapeutics were trading at 60 cents before
the bell, down from Friday's close of 67 cents on Nasdaq.
(Reporting by Jennifer Robin Raj in Bangalore; Editing by Mike
Miller and Aradhana Aravindan)