Citius Pharmaceuticals (NASDAQ: CTXR) Announces Successful Closure of Offering

On November 15, 2024, Citius Pharmaceuticals, Inc. entered into a securities purchase agreement with institutional investors for a registered direct offering. The offering involved the issuance and sale of 12,000,000 shares of the company’s common stock, valued at $0.25 per share, along with warrants to purchase up to an equivalent number of shares. The transaction was closed on November 18, 2024.

The warrants issued have an exercise price of $0.25 per share, with immediate exercisability and a term of five years from the initial exercise date. In cases where there is no effective registration statement for the resale of shares upon warrant exercise, holders have the option for a “cashless” exercise. H.C. Wainwright and Co., LLC served as the exclusive placement agent for the offering.

The net proceeds for Citius Pharmaceuticals from the offering amount to approximately $2.7 million after deducting fees and expenses. The company plans to utilize these funds for general corporate purposes, including pre-clinical and clinical development of its product candidates, as well as for working capital and capital expenditures.

As part of the agreement, Citius Pharmaceuticals has committed to certain restrictions, such as refraining from issuing new equity or debt securities convertible into common stock for a specified period post-closing. The offering was conducted under an effective registration statement on Form S-3 and was declared effective by the Securities and Exchange Commission in March 2024.

The Purchase Agreement contains standard representations and warranties between the company and investors. The company’s filings with the SEC provide additional relevant information and should be considered in conjunction with the details of the agreement.

In conjunction with this transaction, Citius Pharmaceuticals issued press releases on November 15, 2024, and November 18, 2024, to announce the entry into the Purchase Agreement and the closing of the Offering, respectively. These press releases are included as Exhibits 99.1 and 99.2, respectively, within the Form 8-K filing.

Following the closing, the company attached various exhibits to the 8-K filing, including copies of the Purchase Agreement, Investor Warrant, and an opinion of legal counsel regarding the Offering’s legality.

Investors and stakeholders are encouraged to review the full details and disclosures provided in the filed documents regarding this recent development.

This press release does not constitute an offer of securities and should be considered in conjunction with the company’s SEC filings and disclosures.

The Company looks forward to utilizing the proceeds effectively and advancing its strategic objectives in the coming months.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Citius Pharmaceuticals’s 8K filing here.

Citius Pharmaceuticals Company Profile

Citius Pharmaceuticals, Inc, a late-stage pharmaceutical company, engages in the development and commercialization of critical care products focusing on oncology products, anti-infectives products in adjunct cancer care, prescription products, and stem cell therapy. It is developing five proprietary products comprising LYMPHIR, an engineered IL-2 diphtheria toxin fusion protein for the treatment of patients with persistent or recurrent cutaneous T-cell lymphoma, which is in Phase 3 clinical trial; Mino-Lok, an antibiotic lock solution to treat patients with catheter-related bloodstream infections by salvaging the infected catheter, which is in Phase 3 clinical trial; Halo-Lido, a corticosteroid-lidocaine topical formulation that intends to provide anti-inflammatory and anesthetic relief to persons suffering from hemorrhoids that is in clinical Phase 2b trial; Mino-Wrap, a liquifying gel-based wrap for reduction of tissue expander infections following breast reconstructive surgeries; and NoveCite, a mesenchymal stem cell therapy for the treatment of acute respiratory disease syndrome.