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NEW YORK - Citius Oncology, Inc. (NASDAQ:CTOR), a volatile biotech player with a market capitalization of $148.9 million, has completed a $9 million financing through a registered direct offering and concurrent private placement, the oncology-focused subsidiary of Citius Pharmaceuticals announced Wednesday. According to InvestingPro analysis, the stock appears fairly valued at current levels.
The transaction involved 5,142,858 shares of common stock and unregistered warrants to purchase an equal number of shares at a combined effective price of $1.75 per share and accompanying warrant. The warrants carry an exercise price of $1.84 per share and will become exercisable in six months, with an expiration date five and a half years from issuance. The stock has shown remarkable momentum, posting a 113.48% return over the past six months, though InvestingPro data indicates high price volatility with a beta of 3.01.
Maxim Group LLC served as the sole placement agent for the offering, which was conducted pursuant to a registration statement declared effective by the SEC on September 4.
Citius Oncology’s primary asset is LYMPHIR, which received FDA approval in August 2024 for treating adults with relapsed or refractory cutaneous T-cell lymphoma who have had at least one prior systemic therapy. The company estimates the initial market for LYMPHIR exceeds $400 million.
The parent company, Citius Pharmaceuticals (NASDAQ:CTXR), owns 79% of Citius Oncology and maintains a pipeline that includes Mino-Lok, an antibiotic lock solution for catheter-related bloodstream infections, and CITI-002, a topical hemorrhoid treatment. Both completed late-stage clinical trials in 2023.
The company did not specify how the proceeds would be used in the press release statement. With a current ratio of 0.35 and operating at a loss over the last twelve months, the financing could help strengthen the company’s financial position. For deeper insights into CTOR’s financial health and 8 additional key ProTips, visit InvestingPro.
In other recent news, Citius Oncology, Inc. has successfully raised approximately $9 million through a registered direct offering and a concurrent private placement. The company sold 5,142,858 shares of common stock at an effective price of $1.75 per share, accompanied by warrants that allow for the purchase of additional shares. Additionally, Citius Oncology closed another public offering, also raising around $9 million, which is intended to support its immunotherapy product, LYMPHIR. This offering included 6,818,182 shares of common stock and warrants priced at $1.32 per share.
The company has also expanded its distribution network for LYMPHIR by entering into an agreement with Cencora, formerly AmerisourceBergen, to serve as a wholesale distributor. In regulatory developments, Citius Oncology filed a prospectus supplement to update its S-1 registration statement, ensuring compliance with recent financial disclosures. Meanwhile, Citius Pharmaceuticals, the parent company of Citius Oncology, has regained Nasdaq compliance by maintaining a minimum bid price of $1.00 per share for 10 consecutive trading days. These recent developments highlight Citius Oncology’s strategic efforts in financing, product distribution, and regulatory compliance.
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