Citius Pharmaceuticals Closes $15.8 Million Offering for Growth
Citius Pharmaceuticals Completes Successful Capital Raise
Citius Pharmaceuticals Inc. (Nasdaq: CTXR), a pioneering firm committed to advancing innovative critical care products, has successfully concluded a registered direct offering valued at an impressive $15.8 million. This financial venture, structured to align with Nasdaq regulations, involved the sale of 4,920,000 shares of common stock, alongside accompanying short-term warrants.
Structure and Financial Implications of the Offering
The offering took place at a strategic share price set at $1.22, facilitating immediate execution of the accompanying short-term warrants at a favorable exercise price of $1.00 per share. This direct placement, managed exclusively by H.C. Wainwright & Co., is expected to yield approximately $6 million in immediate gross proceeds for Citius, with a potential additional $9.8 million if the short-term warrants are fully exercised. It’s important to note that the exercise of these warrants cannot be guaranteed, and the company is optimistic about their future potential.
Strategic Use of Proceeds
The financial influx from this offering is earmarked primarily for bolstering the commercial launch of the company’s flagship product, LYMPHIR™. This targeted immunotherapy is aimed at addressing cutaneous T-cell lymphoma, a significant step forward in cancer treatment. Alongside this, the funds will support milestone payments, regulatory activities, and various corporate needs that sustain the company's growth.
About Citius Pharmaceuticals
Citius Pharma has established itself as a biopharmaceutical leader, developing groundbreaking critical care solutions. The company’s commitment to innovation is underscored by the recent FDA approval of LYMPHIR, a pivotal asset in their portfolio. Additionally, Citius is advancing its late-stage pipeline which includes Mino-Lok, a vital solution designed to mitigate catheter-related bloodstream infections, and Halo-Lido, a topical treatment for hemorrhoid relief.
Future Prospects and Operational Developments
The company actively engages with the FDA to strategize next steps for both the Mino-Lok and Halo-Lido programs after completing successful Phase 3 and Phase 2b trials in 2023, respectively. These trials have shown promising results, meeting both primary and secondary endpoints, which positions Citius favorably for future growth.
Investor Relations and Contact Information
Citius Pharmaceuticals emphasizes transparency and investor engagement. Interested parties can reach out to their investor contact, Ilanit Allen, at 908-967-6677 x113 for inquiries. Additionally, media representatives can connect with Greg Salsburg through the provided communication channels.
Frequently Asked Questions
What is the total amount raised in Citius Pharmaceuticals' recent offering?
The total amount raised is approximately $15.8 million, consisting of $6 million upfront and up to $9.8 million from the exercise of warrants.
What will the funds be used for?
The proceeds will be utilized to support the commercial launch of LYMPHIR™, along with other regulatory and corporate activities.
Who acted as the placement agent for this offering?
H.C. Wainwright & Co. acted as the exclusive placement agent for Citius Pharmaceuticals' offering.
What is LYMPHIR™?
LYMPHIR™ is a targeted immunotherapy recently approved by the FDA for treating cutaneous T-cell lymphoma, representing a significant advancement in treatment options.
How does Citius Pharmaceuticals ensure future product development?
Citius is actively engaging with regulatory bodies like the FDA and has completed successful trials for its pipeline products, ensuring a strong foundation for further development.
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