Biotech Values

[DewDiligence]

Another brutal PIPE for CYTR

[As previously posted here, CYTR is *not* the way to play the RNAi space (IMHO). The warrants add insult to injury.]

http://biz.yahoo.com/prnews/050121/laf019_1.html

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CytRx Agrees to $21.3 Million Private Placement of Common Stock

LOS ANGELES, Jan. 21 /PRNewswire-FirstCall/ -- CytRx Corporation (Nasdaq: CYTR - News) today announced that it had entered into a definitive agreement with institutional investors providing for a private placement of 17,334,494 shares of its common stock, with gross proceeds of approximately $21.3 million.

In connection with the sale of the common stock, the company also will issue warrants to purchase an additional 8,667,247 shares of common stock at an exercise price of $2.00 per share. CytRx has agreed to register all of the privately placed shares of common stock, together with the shares issuable upon exercise of the warrants, for resale.

Rodman & Renshaw served as the lead placement agent in the financing. [R&R seems to do a high proportion of the really lousy deals.]

"The completion of this financing will allow CytRx to focus on our planned Phase II clinical trial for ALS in the second quarter of 2005, as well as to expand our small molecule, RNAi and DNA vaccine programs in obesity, type 2 diabetes and viral diseases" said Steven A. Kriegsman, CytRx's President and Chief Executive Officer.

About CytRx Corporation

CytRx Corporation is a biopharmaceutical research and development company, based in Los Angeles with a subsidiary in Worcester, Massachusetts. The company is engaged in the development of products, primarily in the area of small molecules and ribonucleic acid interference (RNAi), in a variety of therapeutic categories. The company recently acquired 3 clinical stage compounds and a library of 500 small molecule drug candidates from Biorex Research & Development Company. The company has a broad-based strategic alliance with the University of Massachusetts Medical School to develop novel compounds in the areas of ALS, obesity, type 2 diabetes and CMV using RNAi technology. CytRx also licensed from UMMS the rights to a DNA-based HIV vaccine technology currently in a Phase I clinical trial. The company also has a research program with Massachusetts General Hospital, Harvard University's teaching hospital, to use RNAi technology to develop a drug for the treatment of ALS. For more information, visit CytRx's website at www.cytrx.com.
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