Investing.com -- Citius Oncology Inc (NASDAQ:CTOR) stock plunged 13.8% in premarket trading Tuesday after the company announced a capital raise of approximately $18 million through registered direct and private placement offerings.
The oncology-focused firm has entered into agreements with a single healthcare-focused investor to sell shares and warrants priced at $1.09 per share, representing an at-the-market offering under Nasdaq rules. The transaction includes the sale of 1,284,404 shares in a registered direct offering and 15,229,358 shares (or pre-funded warrants) in a concurrent private placement.
Both offerings include accompanying warrants that will be exercisable following stockholder approval and will expire five years from the approval date. H.C. Wainwright & Co. is serving as the exclusive placement agent for the transactions, which are expected to close around December 10, 2025.
Citius Oncology plans to use the proceeds to strengthen its cash position and support the commercial launch of LYMPHIR™, its novel cancer immunotherapy developed for cutaneous T-cell lymphoma (CTCL). The funds will also be allocated toward working capital and general corporate purposes.
The stock decline reflects typical market reaction to equity offerings that can potentially dilute existing shareholders’ stakes, despite the capital being raised to fund the company’s growth initiatives.
Citius Oncology is a subsidiary of Citius Pharmaceuticals, Inc. (NASDAQ:CTXR) and focuses on developing and commercializing oncology treatments.
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