CytoSorbents Announces Rights Offering
CytoSorbents (NASDAQ: CTSO) has announced a Rights Offering where stockholders of record as of December 16, 2024, will receive one non-transferable Subscription Right Warrant for each share owned. Each Subscription Right allows purchase of a Unit at $1.00, consisting of one common stock share and two transferable Right Warrants.
The offering aims to raise funds for general corporate purposes and unlock $3.0-$5.0 million in restricted cash. A maximum of 6.25 million Units will be offered, with an additional 6.25 million shares reserved for warrant exercises. The Rights Offering expires on January 10, 2025, at 5:00 PM EST.
The Series A and B Right Warrants enable purchase of additional shares at 90% of the 5-day volume weighted average price, with specific price floors and ceilings, exercisable on February 24, 2025, and April 10, 2025, respectively.
CytoSorbents (NASDAQ: CTSO) ha annunciato un'Offerta di Diritti in cui gli azionisti registrati al 16 dicembre 2024, riceveranno un Diritto di Sottoscrizione non trasferibile per ogni azione posseduta. Ogni Diritto di Sottoscrizione consente l'acquisto di un'Unità a $1.00, composta da un'azione ordinaria e due Diritti di Sottoscrizione trasferibili.
L'offerta mira a raccogliere fondi per scopi aziendali generali e sbloccare da $3.0 a $5.0 milioni in liquidità vincolata. Saranno offerti un massimo di 6.25 milioni di Unità, con ulteriori 6.25 milioni di azioni riservate per l'esercizio dei diritti. L'Offerta di Diritti scade il 10 gennaio 2025, alle 17:00 EST.
Le Opzioni di Diritto di Serie A e B consentono l'acquisto di ulteriori azioni al 90% del prezzo medio ponderato per volume di 5 giorni, con prezzi minimi e massimi specifici, esercitabili il 24 febbraio 2025 e il 10 aprile 2025, rispettivamente.
CytoSorbents (NASDAQ: CTSO) ha anunciado una Oferta de Derechos donde los accionistas registrados al 16 de diciembre de 2024 recibirán un Derecho de Suscripción no transferible por cada acción que posean. Cada Derecho de Suscripción permite la compra de una Unidad a $1.00, que consiste en una acción común y dos Derechos de Suscripción transferibles.
La oferta tiene como objetivo recaudar fondos para fines corporativos generales y desbloquear entre $3.0 y $5.0 millones en efectivo restringido. Se ofrecerán un máximo de 6.25 millones de Unidades, con 6.25 millones adicionales de acciones reservadas para el ejercicio de los derechos. La Oferta de Derechos expira el 10 de enero de 2025, a las 5:00 PM EST.
Las Opciones de Derecho de las Series A y B permiten la compra de acciones adicionales al 90% del precio promedio ponderado por volumen de 5 días, con precios mínimos y máximos específicos, que se pueden ejercer el 24 de febrero de 2025 y el 10 de abril de 2025, respectivamente.
CytoSorbents (NASDAQ: CTSO)는 2024년 12월 16일 기준 주주에게 보유 주식당 1개의 비양도성 청약권을 제공하는 권리공모를 발표했습니다. 각 청약권은 $1.00에 유닛을 구매할 수 있으며, 이는 1개의 보통주와 2개의 양도 가능한 청약권으로 구성됩니다.
이번 공모는 일반 기업 목적을 위한 자금을 조달하고 300만에서 500만 달러의 제한된 현금을 확보하는 것을 목표로 하고 있습니다. 최대 625만 개 유닛이 제공되며, 청약권 행사에 대해 625만 개의 주식이 추가로 예약될 것입니다. 권리공모는 2025년 1월 10일 오후 5시 EST에 종료됩니다.
시리즈 A 및 B 청약권은 5일 거래량 가중 평균 가격의 90%로 추가 주식을 구매할 수 있도록 하며, 특정 가격 하한선과 상한선이 있습니다. 각각 2025년 2월 24일과 4월 10일에 행사할 수 있습니다.
CytoSorbents (NASDAQ: CTSO) a annoncé une Offre de Droits où les actionnaires enregistrés au 16 décembre 2024 recevront un Droit de Souscription non transférable pour chaque action détenue. Chaque Droit de Souscription permet l'achat d'une Unité au prix de 1,00 USD, composée d'une action classique et de deux Droits de Souscription transférables.
L'offre vise à lever des fonds pour des besoins d'entreprise généraux et à débloquer 3,0 à 5,0 millions de dollars en liquidités restreintes. Un maximum de 6,25 millions d'Unités sera offert, avec en sus 6,25 millions d'actions réservées pour l'exercice des droits. L'Offre de Droits expire le 10 janvier 2025 à 17h00 EST.
Les Droits de Souscription de Série A et B permettent l'achat d'actions supplémentaires à 90 % du prix moyen pondéré en fonction du volume sur 5 jours, avec des prix minimum et maximum spécifiques, exerçables le 24 février 2025 et le 10 avril 2025, respectivement.
CytoSorbents (NASDAQ: CTSO) hat ein Bezugsangebot angekündigt, bei dem Aktionäre, die zum 16. Dezember 2024 im Aktienregister stehen, ein nicht übertragbares Bezugsrecht für jede gehaltene Aktie erhalten. Jedes Bezugsrecht ermöglicht den Kauf einer Einheit zum Preis von 1,00 USD, bestehend aus einer Stammaktie und zwei übertragbaren Bezugsrechten.
Das Angebot zielt darauf ab, Mittel für allgemeine Unternehmenszwecke zu beschaffen und 3,0 bis 5,0 Millionen USD an gebundenem Bargeld freizusetzen. Es werden maximal 6,25 Millionen Einheiten angeboten, zusätzlich werden weitere 6,25 Millionen Aktien für die Ausübung der Bezugsrechte reserviert. Das Bezugsangebot endet am 10. Januar 2025 um 17:00 Uhr EST.
Die Bezugsrechte der Serien A und B ermöglichen den Kauf zusätzlicher Aktien zu 90 % des volumen gewichteten Durchschnittspreises der letzten 5 Tage, mit bestimmten Preisuntergrenzen und -obergrenzen, die am 24. Februar 2025 bzw. am 10. April 2025 ausgeübt werden können.
- Potential to unlock up to $5.0 million in restricted cash on a dollar-for-dollar basis
- Could provide up to $10.0 million in unrestricted cash if maximum proceeds achieved
- Additional funding would support operations through FDA and Health Canada decisions on DrugSorb-ATR marketing applications in 2025
- Dilutive offering of up to 12.5 million new shares
- Current shareholders must invest additional capital to maintain ownership percentage
- Warrants may create downward pressure on stock price due to potential future dilution
Insights
This rights offering represents a significant capital raising initiative that could materially impact CTSO's financial position. The structure allows for up to
The tiered warrant structure with escalating price requirements (
The rights offering's structure demonstrates careful consideration of existing shareholder interests through the non-transferable subscription rights and pro-rata allocation mechanism. The inclusion of basic subscription rights followed by oversubscription privileges provides fair treatment while maximizing participation potential. The defined pricing parameters for warrant exercises create transparency while protecting against excessive dilution.
The regulatory compliance aspects are well-addressed through the effective S-3 shelf registration and forthcoming prospectus supplement. The clear disclosure of terms, timeline and subscription mechanics, along with the appointment of an information agent, reflects proper governance. The explicit non-solicitation language and jurisdictional limitations indicate appropriate legal risk management.
Investors Must Hold or Buy CTSO Common Stock by Close of Nasdaq Trading on Friday, December 13, 2024 to Participate
PRINCETON, N.J., Dec. 09, 2024 (GLOBE NEWSWIRE) -- CytoSorbents Corporation (NASDAQ: CTSO), a leader in the treatment of life-threatening conditions in the intensive care unit and cardiac surgery using blood purification, today announced the details of its anticipated Rights Offering.
Investors who hold or have bought CTSO stock at the close of Nasdaq trading on Friday, December 13, 2024 will be deemed stockholders of record on December 16, 2024 and, along with certain Warrantholders, will receive a dividend at no cost of one non-transferable Subscription Right Warrant (“Subscription Rights”) for each share of common stock owned. Each Subscription Right, when exercised before the expiration date of 5:00PM EST on January 10, 2025, enables a Unit purchase at a Unit subscription price of
All net proceeds from the offering will go to the Company and be used for general corporate purposes and to satisfy a debt covenant where proceeds of
Each Subscription Right will provide the stockholder the opportunity, but not the obligation, to purchase a Unit at a Unit subscription price of
- One share of common stock.
- One Series A Right Warrant to purchase an additional share of common stock 45 days from the initial Unit subscription closing date, or February 24, 2025, at an exercise price that is
90% of the 5-day volume weighted average price prior to February 24th, but no lower than$1.00 and no higher than$2.00 , irrespective of the share price at the time. - One Series B Right Warrant to purchase an additional share of common stock 90 days from the initial unit subscription closing date, or April 10, 2025, at an exercise price that is
90% of the 5-day volume weighted average price prior to April 10th, but no lower than$2.00 and no higher than$4.00 , irrespective of the share price at the time.
A short presentation on this Rights Offering has been filed with the SEC as a free writing prospectus and can be found in the presentation section on our investor relations website at https://ir.cytosorbents.com/events-presentations.
A maximum of 6.25 million Units will be offered by the Company, and an additional 6.25 million common shares will be reserved for the exercise of the short-term Right Warrants. Once all 12.5 million shares are issued, all outstanding and unexercised Subscription Rights and Series A and B Right Warrants comprising the Units will expire worthless.
We will fill all exercised basic Subscription Rights first. Should basic subscriptions exceed available Units, we will allocate the Units pro-rata among stockholders based on their individual exercise of basic Subscription Rights in proportion to the total number of basic Subscription Rights exercised.
Stockholders who exercise their respective full basic Subscription Rights will also have oversubscription privileges giving them the option to subscribe for any Units that remain unsubscribed at the expiration of the Subscription Rights. If the number of Units remaining after the exercise of all basic Subscription Rights is not sufficient to satisfy all requests for Units pursuant to this oversubscription privilege, we will allocate the available Units pro rata among holders with oversubscription privileges in proportion to the number of oversubscription Units for which they have subscribed.
The Company expects that the information agent for the Rights Offering will mail Subscription Rights certificates and a copy of the prospectus and prospectus supplement for the offering to stockholders as of the record date beginning on or about December 16, 2024. Holders of shares of common stock in “street name” through a brokerage account, bank or other nominee will not receive physical Subscription Rights certificates and must instruct their broker, bank or nominee whether to exercise Subscription Rights on their behalf. For any questions or further information about this Rights Offering, please call D.F. King & Co., Inc., the information agent for the offering, at (800) 549-6864 (toll-free) or (212) 269-5550 (broker-dealers and nominees).
The Rights Offering will be made pursuant to CytoSorbents’ effective shelf registration statement on Form S-3 (File No. 333-281062), and a related prospectus supplement containing the detailed terms of the Rights Offering to be filed with the SEC. The information in this press release is not complete and is subject to change. This press release shall not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any offer, solicitation or sale of the securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful under the securities laws of such state or jurisdiction. The Rights Offering will be made only by means of a prospectus and a related prospectus supplement. Copies of the prospectus and related prospectus supplement, when they become available, will be distributed to all eligible stockholders as of the Rights Offering record date and may also be obtained free of charge at the website maintained by the SEC at www.sec.gov or by contacting the information agent for the Rights Offering.
About CytoSorbents Corporation (NASDAQ: CTSO)
CytoSorbents Corporation is a leader in the treatment of life-threatening conditions in the intensive care unit and cardiac surgery through blood purification. CytoSorbents’ proprietary blood purification technologies are based on biocompatible, highly porous polymer beads that can actively remove toxic substances from blood and other bodily fluids by pore capture and surface adsorption. Cartridges filled with these beads can be used with standard blood pumps already in the hospital (e.g. dialysis, ECMO, heart-lung machines). CytoSorbents’ technologies are used in a number of broad applications. Specifically, two important applications are 1) the removal of blood thinners during and after cardiothoracic surgery to reduce the risk of severe bleeding and 2) the removal of inflammatory agents in common critical illnesses such as sepsis, burn injury, trauma, lung injury, liver failure, cytokine release syndrome, and pancreatitis that can lead to massive inflammation, organ failure and patient death. In these diseases, the risk of death can be extremely high, and there are few, if any, effective treatments.
CytoSorbents’ lead product, CytoSorb®, is approved in the European Union and distributed in 76 countries worldwide, with more than a quarter million devices used cumulatively to date. CytoSorb was originally launched in the European Union under CE mark as the first cytokine adsorber. Additional CE mark extensions were granted for bilirubin and myoglobin removal in clinical conditions such as liver disease and trauma, respectively, and for ticagrelor and rivaroxaban removal in cardiothoracic surgery procedures. CytoSorb has also received FDA Emergency Use Authorization in the United States for use in adult critically ill COVID-19 patients with impending or confirmed respiratory failure, to reduce pro-inflammatory cytokine levels. CytoSorb is not yet approved in the United States.
In the U.S. and Canada, CytoSorbents is developing the DrugSorb™-ATR antithrombotic removal system, an investigational device based on an equivalent polymer technology to CytoSorb, to reduce the severity of perioperative bleeding in high-risk surgery due to blood thinning drugs. It has received two FDA Breakthrough Device Designations: one for the removal of ticagrelor and another for the removal of the direct oral anticoagulants (DOAC) apixaban and rivaroxaban in a cardiopulmonary bypass circuit during urgent cardiothoracic procedures. In September 2024, the Company submitted a De Novo medical device application to the U.S. FDA requesting marketing approval to reduce the severity of perioperative bleeding in CABG patients on the antithrombotic drug ticagrelor, which was accepted for substantive review in October 2024. In November 2024, the Company received its Medical Device Single Audit Program (MDSAP) certification and submitted its Medical Device License (MDL) application to Health Canada. DrugSorb-ATR is not yet granted or approved in the United States and Canada, respectively.
The Company has numerous marketed products and products under development based upon this unique blood purification technology protected by many issued U.S. and international patents and registered trademarks, and multiple patent applications pending, including ECOS-300CY®, CytoSorb-XL™, HemoDefend-RBC™, HemoDefend-BGA™, VetResQ®, K+ontrol™, DrugSorb™, ContrastSorb, and others. For more information, please visit the Company’s website at https://ir.cytosorbents.com/ or follow us on Facebook and X.
Forward-Looking Statements
This press release includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about our plans, objectives, future targets and outlooks for our business, representations and contentions, and the outcome of our regulatory submissions, and are not historical facts and typically are identified by use of terms such as “may,” “should,” “could,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue” and similar words, although some forward-looking statements are expressed differently. You should be aware that the forward-looking statements in this press release represent management’s current judgment and expectations, but our actual results, events and performance could differ materially from those in the forward-looking statements. Factors which could cause or contribute to such differences include, but are not limited to, the risks discussed in our Annual Report on Form 10-K, filed with the SEC on March 14, 2024, as updated by the risks reported in our Quarterly Reports on Form 10-Q, and in the press releases and other communications to shareholders issued by us from time to time which attempt to advise interested parties of the risks and factors which may affect our business. We caution you not to place undue reliance upon any such forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, other than as required under the Federal securities laws.
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U.S. Company Contact:
Peter J. Mariani, Chief Financial Officer
305 College Road East
Princeton, NJ 08540
pmariani@cytosorbents.com
Investor Relations Contact:
Aman Patel, CFA
Investor Relations, ICR-Westwicke
(443) 450-4191
ir@cytosorbents.com
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