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CRANFORD, N.J. - Citius Oncology, Inc. (NASDAQ:CTOR), a $144.2 million market cap biotech company, has secured approximately $9 million in financing through a registered direct offering and concurrent private placement with a single institutional investor, according to a press release statement issued Tuesday. The company’s stock has shown significant momentum, gaining over 95% in the past six months despite recent volatility.
The oncology-focused subsidiary of Citius Pharmaceuticals, Inc. (NASDAQ:CTXR) will sell 5,142,858 shares of common stock in the registered direct offering at an effective price of $1.75 per share, which includes accompanying warrants. The unregistered warrants, issued in a concurrent private placement, will allow the investor to purchase up to an additional 5,142,858 shares at an exercise price of $1.84 per share. According to InvestingPro analysis, CTOR currently operates with moderate debt levels but faces challenges with short-term liquidity.
The warrants will become exercisable six months after issuance and will expire five and a half years from the issuance date. Maxim Group LLC is serving as the sole placement agent for the transaction.
The offering is expected to close Wednesday, subject to customary closing conditions. The company did not specify how it intends to use the proceeds.
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’s current Fair Value assessment by InvestingPro suggests the stock is fairly valued at current levels.
The shares in the registered direct offering are being sold pursuant to a registration statement on Form S-3 filed with the SEC on September 2 and declared effective on September 4. The warrants and shares issuable upon their exercise were offered in a private placement under Section 4(a)(2) of the Securities Act of 1933 and have not been registered under the Act.
In other recent news, Citius Oncology, Inc. announced the closing of its public offering, raising approximately $9 million in gross proceeds. This financial boost is intended to support the company’s LYMPHIR immunotherapy product. The offering included 6,818,182 shares of common stock and warrants, priced at $1.32 per share, with the warrants valid for five years. Additionally, Citius Oncology has expanded its distribution network for LYMPHIR through a new agreement with Cencora, formerly known as AmerisourceBergen. This deal will facilitate the distribution of LYMPHIR, which is FDA-approved for treating relapsed or refractory cutaneous T-cell lymphoma. Citius Oncology is also preparing for the commercial launch of LYMPHIR in the second half of 2025, with sufficient inventory produced to meet demand for 12-18 months post-launch. Furthermore, Citius Oncology filed a prospectus supplement to update its S-1 registration statement to align with its recent quarterly report. Meanwhile, its parent company, Citius Pharmaceuticals, has regained compliance with Nasdaq’s minimum bid price requirement, ensuring continued listing on the Nasdaq Stock Market.
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