Cytori Therapeutics enters into private placement with Olympus Corporation and institutional investors

Aug 11, 2008 (M2 EQUITYBITES via COMTEX) -- OCPNY | Quote | Chart | News | PowerRating -- Cytori Therapeutics (NASDAQ: CYTX | Quote | Chart | News | PowerRating) declared on 8 August that the regenerative medicine company has executed a financing agreement to raise approximately USD17m from a private placement financing led by Olympus Corporation (TSE: 7733) with participation from select institutional investors.

Cytori entered into agreements to issue a total of 2.83m shares of common stock with 50% warrant coverage at USD6.00 per unit. The company anticipates net proceeds of approximately USD16.4m after offering-related fees and expenses.

Cytori Therapeutics stated that the warrants are exercisable for up to a total of 1.42m shares of common stock at an exercise price of USD8.50 per share. The warrants will have a five year term and will be exercisable no sooner than six months following the closing of this transaction.

Olympus, as the lead investor, will purchase 1m shares and warrants exercisable for up to an additional 500,000 shares.

Cytori said it plans to use the proceeds to expand commercialisation activities for its Celution 800/CRS System in Europe and Asia Pacific and global marketing efforts for the Companys Celution System-based StemSource Cell Bank business. The proceeds will also be used for funding its product development, clinical trials, working capital and general corporate purposes.

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