Cytori Therapeutics Inc. (CYTX) Tumbles in Pre-market Hours After Pricing Public Offering

Cytori Therapeutics Inc. (NASDAQ:CYTX) tumbled by 36.05% to $1.10 on pre-market trading on April 11, after pricing a public offering of 8,600,000 shares of common stock at $1.10 per share. The company expects to raise approximately $9.5 million in gross proceeds.

The underwritten public offering grants a 45-day option for the underwriters to purchase up to 15% of additional shares of its common stock. The offering is expected to close on or about April 17.

The therapeutics company said it intends to use the net proceeds from the sale on working capital and general corporate purposes, including the funding of the HABEO and ATI-0918 development programs.

Maxim Group LLC is acting as sole book-running manager for the offering.

Cytori Therapeutics Inc. (NASDAQ:CYTX) is a company developing regenerative and oncologic therapies from its proprietary cell therapy and nanoparticle platforms for a variety of medical conditions.

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What Does The Smart Money Sentiment Say?

According to our data, none of the 742 elite funds we track owned any shares of Cytori Therapeutics Inc. (NASDAQ:CYTX) at the end of Q4. However, Jim Simons of Renaissance Technologies established a new position when it bought 10,091 shares valued at $15,000 as of the end of December 2016. Meanwhile, Ken Griffin of Citadel investment Group established a new position when it bought 37,293 shares valued at $56,000.

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The Bottom Line

Cytori Therapeutics Inc. (NASDAQ:CYTX) tumbled by more than 36% in the pre-market hours on Tuesday, following the pricing of a public offering. The company expects to fetch gross proceeds of approximately $9.5 million in that offering.

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