Cytori Therapeutics (NSDQ:CYTX) said today that it priced an underwritten public offering of 8.6 million shares of common stock at $1.10 apiece. The company plans to bring in $9.5 million.
Cytori granted a 45-day underwriter’s option to purchase up to 15% of additional shares of common stock. The offering is expected to close on April 17 this year.
Cytori said it plans to use the net proceeds of its offering for working capital and general corporate purposes.
Yesterday, the FDA approved an Investigational Device Exemption for a pilot trial of the company’s cell therapy in patients with thermal burn injury. The Relief trial is a part of Cytori’s ongoing R&D efforts under its contract with the U.S. Dept. of Health & Human Services’ Biomedical Advanced Research and Development Authority.
The San Diego-based company plans to assess the safety and feasibility of intravenous delivery of its cell therapy as an adjunct to standard care in patients with thermal burn injuries covering between 20% and 50% of their body surface area. The Relief trial is slated to enroll up to 30 patients and will start when BARDA exercises a contract option to provide the necessary funds, according to Cytori.
Cytori’s cell therapy is derived from human adipose tissue, or fat, and is also known as adipose-derived regenerative cells. Because the regenerative cells come from the patient’s body, treatment with these cells avoid cell rejection and do not require immunosuppressive drugs.
Previous studies have shown that the cells can promote angiogenesis – the creation of new blood vessels from pre-existing vessels. Preclinical studies also demonstrated that the regenerative cells are associated with wound healing, promoting the expression of extracellular matrix components and remodeling enzymes.
The company’s stock soared up 40% yesterday, but today fell -34% to $1.13 apiece.
