CTI BioPharma Corp (fka CTIC)

[Renee]

SEATTLE (AP) -- Biotechnology company Cell Therapeutics Inc. said Monday it has agreed to sell stock and warrants to a group of three institutional investors for up to $34.1 million.

Cell Therapeutics said it will sell 21,000 shares of preferred stock for $21 million in proceeds. Each share of preferred stock can be converted into 2,500 shares of common stock at 40 cents per share. If all the preferred shares are converted, they will amount to 52.5 million shares.

The investors will also get warrants to buy 1,250 common shares for each share of preferred stock. The warrants can be exercised starting Nov. 25 at a price of 50 cents per share. If all warrants are exercised, Cell Therapeutics could get another $13.1 million in proceeds. The warrants will expire in four years.

The company is developing the drug candidate pixantrone, as a treatment for cancer. In April, the Food and Drug Administration said Cell Therapeutics will need to run another clinical trial to win marketing approval.

Shares of Cell Therapeutics fell 6 cents to 39 cents in premarket trading. The shares have traded between 12 cents and $2.23 over the last 12 months.