Cell Therapeutics Bracing For Shareholder Event (CTIC)
Cell Therapeutics Inc. (NASDAQ: CTIC) is still in trouble after its recent implosion. But traders have still been swinging this stock around each day on one report or another, and we are finally starting to see a break or compression in the intra-day volatility in this biotech stock.
Last week the company agreed to sell $20 million in preferred stock and warrants to several institutional investors, and it noted that it could raise up to $32 million in total if those investors exercise their warrants. The company has also been hit by lawsuits of the class action nature and has a key upcoming meeting that will be a make or break decision time for shareholders.
Class action suits have come from The Law Firm of Barroway Topaz Kessler Meltzer & Check, LLP… A separate announcement by Brower Piven also asked those with losses of $50,000 or more contact to contact it regarding a lead plaintiff status. Hagens Berman Sobol Shapiro also has a class action against Cell Therapeutics.
Cell Therapeutics is hosting its Special Meeting of Shareholders in Seattle at 10:00 AM Pacific Time on April 9, 2010. The company has two key issues for vote listed from the February proxy:
- (1) to approve an amendment to the Company’s amended and restated articles of incorporation to increase the total number of authorized shares from 810,000,000 to 1,210,000,000 and to increase the total number of authorized shares of common stock from 800,000,000 to 1,200,000,000; and
- (2) to approve an amendment to the Company’s 2007 Equity Incentive Plan, as amended (the “2007 Equity Plan”), to increase the number of shares available for issuance under the 2007 Equity Plan by40,000,000 shares.
The other notion to consider is that this Special Meeting is only for holders of record at the close of business on February 19, 2010 as far as those who are entitled to vote.
We have seen a volatility compression take hold, so it will be interesting to see what (if anything) comes from the meet8ing this Friday. Either way, it may have some heated words thrown in that meeting.
At 10:38 AM EST Cell Therapeutics is up almost 1% at $0.536 on 2.65 million shares.
JON C. OGG
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