Cyclacel Pharmaceuticals, Inc. (CYCCP) a biopharmaceutical company focused on developing innovative cancer medicines announced on Friday that it has entered into a securities purchase agreement with investor David Lazar.
Under the agreement, Lazar will purchase 1 million shares of Series C Convertible Preferred Stock and 2.1 million shares of Series D Convertible Preferred Stock for a total of $3.1 million.
The funds from this transaction will be used to settle outstanding liabilities and for general corporate purposes.
The transaction involves a two-step closing process. The initial $1 million payment for the Series C shares is expected on or about January 3, 2025.
Following stockholder approval, Lazar will pay an additional $2.1 million for the Series D shares. As part of the deal, Cyclacel's Board of Directors will be restructured, with David Lazar assuming the role of interim CEO.
The company has also entered into a Warrant Exchange Agreement with a holder of existing warrants to exchange them for common stock and cash.
Additionally, Cyclacel's management has been directed to reduce operating costs while exploring strategic alternatives, though no definitive agreements have been reached.
The company has until February 6, 2025, to meet Nasdaq's minimum stockholders' equity requirement to avoid potential delisting.
Currently, CYCCP is trading at $8.34 up by 14.40%
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