Citius Pharmaceuticals Inc (NASDAQ:CTXR) has unveiled the pricing of a US$10mln secondary share offering.
The Cranford, New Jersey, company intends to use the money to fund its Phase 3 clinical trial for its drug Mino-Lok, which treats catheter-related bloodstream infections. The money will also go towards its Phase 2b trial of its Hydro-Lido cream for the treatment of hemorrhoids as well as working capital.
Investors applauded the move and sent Citius shares up 50% to US$1.71 by the early afternoon.
Citius will offer 7.8mln shares of its stock and an equal amount of warrants. Each share is being sold together with a warrant. One share of stock will be sold at a combined price of US$1.275 per share, as well as the accompanying warrant.
The warrants can be exercised immediately at a price of US$1.15 per share and expire five years from the date of their issuance.
The offering, which is expected to close on or about August 13, is set to earn US$10mln in proceeds on a gross basis.
HC Wainwright & Co is the book-runner for the offering.
Citius is a specialty pharmaceutical company that develops critical care products.
Contact Ellen Kelleher at [email protected]