SEATTLE, July 29 /PRNewswire-FirstCall/ -- Cell Therapeutics, Inc.
(the "Company") (Nasdaq: CTIC; MTA) today announced that it has entered into
an equity line of credit agreement with Midsummer Investment, Ltd. for the
sale of up to $12 million of common stock over time (the "Agreement"). The
stock would be issued upon exercise of a warrant pursuant to the terms of the
Agreement.
The Company has the right to raise cash under the Agreement for shares of
the Company's common stock on a periodic basis. The number and price per
share of each issuance are determined by a contractual formula based on the
trading volume and a discount to the volume weighted average price of the
Company's common stock, as reported by the Milan Stock Exchange, over a
preceding period of trading days.
The first draw under the Agreement is expected to take place in August
2008, and the Agreement contemplates that additional draws (subject to
customary closing conditions) will occur until the warrant is exercised in
full or the Company elects to suspend future closings under the Agreement.
The Company can choose to reactivate the line of credit following any such
suspension.
A prospectus supplement relating to the common stock to be issued in
respect of the Agreement was filed with Securities and Exchange Commission.
Copies of the prospectus supplement and accompanying base prospectus may be
obtained directly from Cell Therapeutics, Inc., 501 Elliott Avenue West, Suite
400, Seattle, Washington 98119.
This announcement is neither an offer to sell nor a solicitation of an
offer to buy any of these securities and shall not constitute an offer,
solicitation or sale in any jurisdiction in which such offer, solicitation or
sale is unlawful.
This press release includes forward-looking statements that involve a
number of risks and uncertainties, the outcome of which could materially
and/or adversely affect actual future results. Specifically, the risks and
uncertainties include risks the we may not be able to meet the closing
conditions for issuance of shares under the Agreement and therefore may not
receive any funds under the Agreement, and the risk that the Company continues
to have a significant amount of debt outstanding and will need to raise
additional capital to fund its operations as well as other risks listed or
described from time to time in the Company's most recent filings on Forms 10-
K, 8-K and 10-Q. You should also review the risk factors listed or described
from time to time in the Company's filings with the Securities and Exchange
Commission including, without limitation, the Company's most recent filings on
Forms 10-K, 8-K, and 10-Q. Except as may be required by law, CTI does not
commit to update or alter its forward-looking statements whether as a result
of new information, future events, or otherwise.
Media Contact:
Cell Therapeutics, Inc.
Dan Eramian
T: 206.272.4343
C: 206.854.1200
E: media@ctiseattle.com
http://www.CellTherapeutics.com/media.htm
Investors Contact:
Cell Therapeutics, Inc.
Ed Bell
T: 206.272.4345
Lindsey Jesch
T: 206.272.4347
F: 206.272.4434
E: invest@ctiseattle.com
http://www.CellTherapeutics.com/investors.htm
SOURCE Cell Therapeutics, Inc.
Media, Dan Eramian, +1-206-272-4343, mobile, +1-206-854-1200,
media@ctiseattle.com, or Investors, Ed Bell, +1-206-272-4345, or Lindsey
Jesch, +1-206-272-4347, Fax, +1-206-272-4434, invest@ctiseattle.com, all of
Cell Therapeutics, Inc.
