CytRx Corporation (OTCMKTS:CYTR) Stock Continues to Move in a Narrow Range: What Next?
CytRx Corporation (OTCMKTS:CYTR) stock was in focus as the stock ended slightly lower on Tuesday. How will the stock perform this week?
Market Action
In the previous trading session, CYTR stock up marginally by 0.10% to $0.55. A total of 69k shares traded for the session hands, compared to its average volume of 81k shares. The stock opened at $0.5350 and moved in a range of $0.5200 – 0.5498.
Recent News
CytRx Corporation Announces Closing of $10 Million Offering to Healthcare-Focused Institutional Investor
CytRx Corporation announced the closing of its previously announced sale of its securities pursuant to a securities purchase agreement (the “Purchase Agreement”) to a single healthcare-focused institutional investor (the “Investor”) for aggregate gross proceeds of approximately $10 million. The Investor is independent of the Company’s Board of Directors and management team. The Company intends to use the net proceeds of the offering for working capital purposes.
Under the terms of the Purchase Agreement, CytRx sold 2,000,000 shares of its common stock at a purchase price of $0.88 per share for total gross proceeds of approximately $1.76 million in a registered direct offering and 8,240 shares of Series C 10.00% Convertible Preferred Stock (the “Preferred Stock”) at a purchase price of $1,000 per share for total gross proceeds of approximately $8.24 million, in a concurrent private placement.
The shares of the Preferred Stock are convertible, upon shareholder approval as described below, into an aggregate of up to 9,363,637 shares of common stock at a conversion price of $0.88 per share. The Preferred Stock includes beneficial ownership limitations that preclude conversion that would result in the Investor owning in excess of 9.99% of the Company’s outstanding shares of common stock.
Trader Notes:
CYTR stock is looking weak as it is trading below all the key moving averages with 50-day and 200-Day SMA stand at $0.66 and $1.79 respectively. The stock has lost 75% over the past 6-month. The RSI stood at 38.