Cyclacel (CYCC +6.38%) is getting in gear to expand its capital base. The company is floating a new issue of common stock in an underwritten public offering. Just under 6.67 million shares of the firm will be sold at a price of $3.00 apiece. Additionally, the company's underwriters have been granted a 30-day purchase option for up to an additional 166,667 shares to cover over allotments, if any.
Cyclacel estimates the gross proceeds of the issue will amount to roughly $20 million. The company will use its take to fund clinical trials of what it describes as its "most advanced product candidate," sapacitabine, and for "general corporate purposes."
JMP Group's JMP Securities is the sole book-running manager of the issue. Cyclacel expects the offering to close on May 21.
