Citius Oncology closes $18 million stock offering at $1.09 per share

Citius Oncology Inc. (NASDAQ: CTOR) completed an $18 million financing through concurrent registered direct offering and private placement transactions priced at $1.09 per share, the company announced.

The oncology-focused subsidiary of Citius Pharmaceuticals Inc. (NASDAQ: CTXR) sold 1,284,404 shares to a single healthcare-focused investor in the registered direct offering. The company also issued unregistered warrants to purchase up to 1,284,404 additional shares at $1.09 per share, exercisable for five years following stockholder approval.

In the concurrent private placement, Citius Oncology sold 15,229,358 shares of common stock and pre-funded warrants, along with warrants to purchase up to 15,229,358 additional shares. The warrants carry the same $1.09 exercise price and five-year term following stockholder approval.

H.C. Wainwright & Co. served as exclusive placement agent for both offerings. The company plans to use net proceeds to support the commercial launch of LYMPHIR and for working capital and general corporate purposes.

Citius Oncology also amended existing warrants for 11,961,040 shares that were issued to the same investor in July and September, reducing their exercise prices from $1.32 and $1.84 per share to $1.09 per share.

The registered direct offering was conducted under a shelf registration statement declared effective by the Securities and Exchange Commission on September 4. The private placement securities were offered under Section 4(a)(2) of the Securities Act and have not been registered.

Citius Oncology launched LYMPHIR in December after receiving FDA approval for treating adults with relapsed or refractory Stage I-III cutaneous T-cell lymphoma who had at least one prior systemic therapy.

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