CytRx Holds Private Placement

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CytRx Corp. said Wednesday that it is holding a private placement where it will be offering 8.6 million shares at $4.30 to a group of institutional investors in the hopes of netting about $34 million.


The Los Angeles-based biotech company said in a statement that $15 million will be invested in its RXi Pharmaceuticals Corp. subsidiary to satisfy preliminary financing requirements under its agreements with the University of Massachusetts Medical School.


The remainder of the funds will go toward CytRx’s working capital and for general corporate purposes, the company said.


Shares in CytRx were down 21 cents, or 4.4 percent, to $4.59 in afternoon trading Wedensday on the Nasdaq.

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