PRINCETON, N.J. - CytoSorbents Corporation (NASDAQ: CTSO), a leader in blood purification technologies currently trading at $0.92 with a market capitalization of $50 million, announced the start of its Rights Offering for eligible stockholders and certain Warrantholders. According to InvestingPro data, the company’s stock has declined by 48% over the past year, making this offering particularly significant. The offering follows the company’s previous announcement on December 9, 2024, and involves the distribution of Subscription Right Warrants allowing stockholders to purchase new units of the company’s stock at a set price.
Stockholders of record on December 16, 2024, have been granted one non-transferable Subscription Right for each share of common stock owned. These rights, when exercised before 5:00 PM EST on January 10, 2025, enable the purchase of a Unit at $1.00 each. A Unit comprises one share of common stock and two transferable short-term Right Warrants for additional share purchases at a discount, subject to availability.
The information agent, D.F. King & Co., Inc., has dispatched Subscription Right certificates and offering prospectuses to eligible holders. Those holding shares in street name will receive notification through their online brokerage or bank accounts and must instruct their financial intermediaries whether to exercise the rights on their behalf.
Investors may exercise all, some, or none of their Subscription Rights and have the chance to participate in an oversubscription opportunity if they fully utilize their basic rights. The completion of the subscription period will see the distribution of common stock shares and Right Warrants to the brokerage accounts of participating stockholders, with adjustments if the offering is oversubscribed.
The Rights Offering is made under CytoSorbents’ effective shelf registration statement on Form S-3 and a related prospectus supplement filed with the SEC. InvestingPro analysis indicates that while the company maintains a fair financial health score, it faces challenges with cash burn and profitability. Investors are advised to consult their brokers or financial advisors well ahead of the deadline as brokers may set earlier cut-off times for processing orders. Any excess funds received from the exercise of rights will be refunded without interest or penalty.
This Rights Offering is part of CytoSorbents’ efforts to expand its reach in treating life-threatening conditions through blood purification. Their lead product, CytoSorb, is approved in the European Union and used in various critical care applications. The company is also advancing its DrugSorb-ATR system in the U.S. and Canada, with FDA Breakthrough Device Designations and a pending De Novo request for marketing approval. InvestingPro analysis suggests the stock is currently undervalued, with analysts setting price targets ranging from $1 to $10. Discover more valuable insights and access the comprehensive Pro Research Report covering CTSO and 1,400+ other US stocks through an InvestingPro subscription.
The information in this article is based on a press release statement from CytoSorbents Corporation.
In other recent news, CytoSorbents Corporation has unveiled the terms for an upcoming Rights Offering, aiming to raise between $3.0 million and $5.0 million. This capital raise is pivotal as the company has experienced a negative free cash flow of $18.8 million in the last twelve months. The proceeds are intended to support operations and general corporate expenses amidst key regulatory decisions expected in 2025.
In recent developments, CytoSorbents reported an 11% year-over-year increase in product sales for the third quarter of 2024, reaching $8.6 million. The company’s flagship product, CytoSorb, has generated nearly $34 million in sales over the past year.
CytoSorbents continues to make progress with its blood purification technology, particularly in critical care and cardiac surgery applications. The company has managed to decrease its operating expenses by 25% and reduced its cash burn to $2.7 million.
The company is preparing for the launch of DrugSorb ATR, a device aimed at reducing perioperative bleeding, which has earned two FDA breakthrough device designations. Decisions from the FDA and Health Canada on DrugSorb ATR are expected to be made in 2025.
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