CytoSorbents secures $1.6 million from warrant exercises

PRINCETON, N.J. - CytoSorbents Corporation (NASDAQ: CTSO), a critical care therapy provider currently trading at $1.09, has announced the receipt of $1.6 million in aggregate gross proceeds following the exercise of 1,417,208 Series A Right Warrants at $1.13 each. This event took place upon the expiration of the warrants on Monday. According to InvestingPro analysis, the company’s stock has shown resilience with a 19.8% year-to-date return, despite a recent 7.6% decline over the past week.

The exercised warrants were part of a previously closed Rights Offering, contributing to a total of $7.85 million raised by the company, which includes $6.25 million from January 10, 2025. The funds from the January offering also released $5.0 million of restricted cash, strengthening the company’s balance sheet with an increase in net liquidity of approximately $12.3 million after offering fees. This capital raise comes at a crucial time, as InvestingPro data shows the company has been quickly burning through cash, with a current ratio of 1.97 and negative free cash flow.

Dr. Phillip Chan, CEO of CytoSorbents, expressed satisfaction with the outcome of the Rights Offering, noting its role in enhancing the company’s financial position and supporting its core international business. The company is also anticipating regulatory decisions from both the U.S. FDA and Health Canada in 2025 for its DrugSorb-ATR product.

The exercise price for the Series A Right Warrants was set at 90% of the 5-day volume weighted average price of the company’s common stock, leading up to the expiration date, with a minimum of $1.00 and a maximum of $2.00 per share. Shareholders who exercised their warrants are expected to receive their shares along with a refund for the price difference.

Approximately 4.8 million shares remain available for the exercise of Series B Right Warrants, which will commence at a similar pricing structure and expire on April 10, 2025. Instructions to exercise these warrants will be processed in the order received.

CytoSorbents’ proprietary blood purification technologies are employed in treating life-threatening conditions in intensive care and cardiac surgery. The company’s flagship product, CytoSorb, is approved in the European Union and distributed in 76 countries, with FDA Emergency Use Authorization in the United States for critically ill COVID-19 patients. With a gross profit margin of 62.7% and revenue of $37.7 million in the last twelve months, the company shows promising operational metrics. Discover more detailed insights and 6 additional ProTips about CTSO’s potential on InvestingPro, including comprehensive analysis of the company’s financial health and growth prospects.

This financial update is based on a press release statement from CytoSorbents Corporation.

In other recent news, CytoSorbents Corporation announced preliminary financial results for the fourth quarter and full-year of 2024, highlighting an estimated product revenue growth of 22% to 25% year-over-year for the fourth quarter. Revenues are expected to be between $9.0 million and $9.2 million, compared to $7.35 million in the same quarter of the previous year. For the full year, product revenue is estimated to grow approximately 14%, reaching between $35.4 million and $35.6 million. CytoSorbents also reported an improvement in gross margin, estimated at around 70% for the fourth quarter. Additionally, CytoSorbents has set the terms for its anticipated Rights Offering, aiming to raise between $3.0 million and $5.0 million. Stockholders as of December 16, 2024, will receive Subscription Right Warrants, allowing the purchase of new stock units. The company has established a new sales subsidiary in Dubai to expand its presence in the Middle East and Africa. Furthermore, CytoSorbents is undergoing regulatory reviews in the U.S. and Canada for its DrugSorb-ATR system, with decisions expected in 2025.

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