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UPDATE 1-Cell Therapeutics shares fall after going-concern doubt
March 1, 2010 / 2:17 PM / 8 years ago

UPDATE 1-Cell Therapeutics shares fall after going-concern doubt

* Says needs to raise additional funds

* Shares fall 10 pct (Updates share movement, adds details)

March 1 (Reuters) - 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 2010.

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 warrants.

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 authorized shares.

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)

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