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TOPIC: warrants (news)

warrants (news) 18 Dec 2015 06:32 #5717

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SAN DIEGO--(BUSINESS WIRE)--





Cytori Therapeutics, Inc. (CYTX) (the “Company”) today announced that it has entered into definitive agreements with certain holders (the “Consenting Holders”) of approximately 100% of its outstanding Series A-1 and A-2 warrants issued in May and August of 2015 as well as warrants issued in October 2014. The agreements are intended to improve the financial flexibility of the Company, reduce the fully diluted share count, remove potentially dilutive effects of certain warrant provisions that provided for resets in warrant exercise price in potential future transactions, and provide greater freedom for the Company to use its ATM or ”at-the-market offering” program. If all warrant holders elect to engage in these cashless exercises, the Company will issue an aggregate of approximately 36.5 million common shares pursuant to such exercises.

Dr. Marc H. Hedrick, President and Chief Executive Officer of the Company said, “We believe that these warrant exercises are mutually beneficial to both our stockholders and Cytori. In terms of our financials, these exercises simplify our balance sheet and our equity structure. Operationally, we believe these agreements and subsequent warrant exercises will improve our attractiveness to potential commercial partners as we near milestones in our US osteoarthritis and US and European scleroderma programs. On a related note, based on continued success of our expense reduction initiative, we can at this time, update our 2015 operating cash burn guidance for the full year down to $22 million, $3 million less than our initial guidance of $25 million disclosed in the beginning of 2015.”

Maxim Group LLC advised the Company in its negotiations with the holders of the warrants.

Under the terms of the agreements, the Consenting Holders will receive approximately 0.73 common shares for each cashless exercise of a warrant on a blended average basis, with specific conversion factors dependent on the class of warrant held.

As of September 30, 2015, approximately 50.1 million warrants with anti-dilution price protection were outstanding. As a result of these anticipated warrant exercises, the Company expects that, as of the close business on December 31, 2015, there will be approximately 195 million common shares issued and outstanding and no warrants with anti-dilution price protection.

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Interesting move

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warrants (news) 18 Dec 2015 06:45 #5718

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So- they basically forsake on the cash of exercise of the warrants and provide Sabby et al with shares which they can throw on the market immediately, so we get rid of them as soon as possible when something positive happens in the corporate development.

This also with a gigantic simplification benefit (those warrant agreements were highly complex) .

Sounds they have it all sassed out. :cool: :grin:

Cant wait for the future to roll on.. :bye:

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Board moderator and Site-owner. I still regret the day I started analysing the prospects of MacroPore (now Cytori) back in 2004- a left-over from the tech-bubble at that time from the century change in my portfolio- and became addicted to Cytori´s fat cell technology. :cry:

warrants (news) 18 Dec 2015 06:53 #5719

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Yep

Perhaps a epiphany to a problem.

One can draw several pluses and minuses and perhaps future conjectures.

Curious to market reaction

Like I said....Interesting

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warrants (news) 18 Dec 2015 07:39 #5720

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They recognize that the warrants with their exercise price reset conditions provided the tools for the F#6K1n6 B@5t@7d5 that controlled the stock price to continue there predatory practices against the company. These warrants were issued in a moment of weakness. That they see fit to correct this festering sore is a great move. We forgo the cash infusion from the warrants but simplify our capital structure and shake off the leeches.

This is something that needed to be done. It is a sign of confidence and strength. No doubt potential partners would rather deal only with CYTX management and not have to worry about the monkey on their (CYTX's) back.

The FB have made a lot of money. With all their front running, range trading and shorting strategies etc they have more than recouped their initial financial investment and will now end up with 20% of the company.......... not bad :KO: With long shares only and no warrants they can sell against the box, but they will not be in a hurry to do so unless it is at much higher levels. Of course they may have existing open short positions but it is quite amazing to see how they can change the direction of a share when it is in their interest to do so.

We are near the pivot point. :winky:
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warrants (news) 18 Dec 2015 08:38 #5721

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***Perhaps a epiphany to a problem***

The choke hold appears to have been relaxed, a potential partner requirement?? A little more wiggle room nevertheless, from the leeches who are breaking this camels back.

d9

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warrants (news) 18 Dec 2015 09:07 #5722

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Great deal for the equity rape financiers. They get about 36.5 million shares from about 50 million warrants without laying out a dime. Does it mark the last chapter of Cytori shareholders continuously getting damaged by the failure of management to protect the company and manage the balance sheet in a sophisticated manner? I have said many times that the warrant overhang has been a major drag on share prices. It is logical that a new partner may have wanted to eliminate the reset provision. However, the reset provision is irrelevant if the shares move over the strike prices and shares are sold at higher prices. Not sure what to make of this, to be honest.

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warrants (news) 18 Dec 2015 09:41 #5723

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I did not expect this at all- why? Sure dilution, but the warrants would have diluted too at some point to a greater extent even.

I am lost- anybody?

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Board moderator and Site-owner. I still regret the day I started analysing the prospects of MacroPore (now Cytori) back in 2004- a left-over from the tech-bubble at that time from the century change in my portfolio- and became addicted to Cytori´s fat cell technology. :cry:

warrants (news) 18 Dec 2015 10:04 #5724

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wow, look at the cheerleaders coming up with something positive in this crash...

Get used to it people, more on the way..... and the cheers will continue... easiest way to make money.. put a :winky: here and there a couple of :nice: and :happy: and make good money...

The American way, take their hard earned cash and tell them it will be alright.

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warrants (news) 18 Dec 2015 10:05 #5725

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Fas, it means more on the way.

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warrants (news) 18 Dec 2015 10:29 #5726

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The only thing positive would be a close TODAY near yesterday's close - up a lil .....down a lil or unchanged. When we closed below 142 , the count was ( and still is ) zero. T/A 101 ........... Im buying handfuls of shares all along the way just in case miracles happen and CYTX gets a partner.

Fas , what do you think the OA data will show? If it's good , I actually think they'll get a partner..........call me an optimist. Forgot

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warrants (news) 18 Dec 2015 10:40 #5727

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Bought my CYTX lottery ticket as my price was hit.

Yes, I had a very scary price bid.

Good volume at least...if you look at the 8-10 million shares I expected on a capitulation, we easily hit it today. Of course, I didn't expect the warrant conversion at the time....LOL.

No idea where we close.

Zero, as I said for years was ALWAYS a possibility but I still took one last shot . At these prices it wont matter if it doesn't pay.

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warrants (news) 18 Dec 2015 10:43 #5728

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*** in case miracles happen***

Right now .17cents away from 0, we may need one.

d9

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warrants (news) 18 Dec 2015 14:20 #5730

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Fas,

The only difference is that all 36 million shares will be on the market now but it removes the cap at higher prices.Its not a good headline to see 36,000,000 going out for free even if it creates more certainty. The balance sheet has been badly managed and damaged for years, but you are correct that the damage was done when the deals were set up.

This is a far cry from Las Vegas :really:

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warrants (news) 18 Dec 2015 14:41 #5731

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:whistle:

There has been a lot of pressure on the PPS the last weeks or so-

cytxer tells us- because there are folks that know more than we do- they play the market accordingly... i.e. they sell... :bye:

Surely our favorite friends from Sabby & Co have been party in the negotiations to this deal and made a few pennies more in the meantime the last few weeks... :whistle: ...yeah.. surely they knew more i.e. everything. :bang: :bash:


At least .. hopefully from now on they are in the dark... and others are owning the shares they used to have :evil:

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Board moderator and Site-owner. I still regret the day I started analysing the prospects of MacroPore (now Cytori) back in 2004- a left-over from the tech-bubble at that time from the century change in my portfolio- and became addicted to Cytori´s fat cell technology. :cry:

warrants (news) 18 Dec 2015 15:15 #5732

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I still remain with my original assessment....its a interesting move by Tiago and the gang.
While still a unknown on how it all finally plays out I was willing to be patient with a purchase and go into the weekend with at least some of my shares in the black. :grin:

Now we need to tackle the debt.
Next thing you know we may actually have a company...darn I say...a investable company ? OK, maybe I'm pushing a bit early. Its those positive shares.... :whistle:

Not discussed that I have seen is the 2015 reduction in cash burn to 22 million.
Who thinks maybe we were given a hint ?

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warrants (news) 18 Dec 2015 15:26 #5733

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Congarts to all buyer today. I bought today my 150% Position, 50% more that i want. But only for the reduction of the average buying prize.

I believe in good OA results and a possible partner :happy:

I know lottery, yes please jackpot with 50 Mio upfront :nice:


gegards holdi

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holdi

warrants (news) 18 Dec 2015 16:16 #5735

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Amazing indeed.

Really scary.

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warrants (news) 18 Dec 2015 16:17 #5736

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Old Young Fox wrote: Congarts to all buyer today. I bought today my 150% Position, 50% more that i want. But only for the reduction of the average buying prize.

I believe in good OA results and a possible partner :happy:

I know lottery, yes please jackpot with 50 Mio upfront :nice:


gegards holdi


Ask yourself who were those who were gladly selling all those millions of shares for sub 20 cents when they could have sold it at higher price later... more warrants, more dilution... another couple of years needed...

Also, I love this talk about partner to be.... :grin:

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warrants (news) 18 Dec 2015 17:03 #5737

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I was able to speak with Tiago today. He did a very nice job of explaining this decision to me. I know they hate it when I use their name as my source, but since he obviously was telling the same story to all those who were able to get through, I hope he won't mind.

Over the last few months, Cytori would issue an important press release and the stock would trade up a few pennies into the low $.40 area and then the warrant holders would start selling and hold the stock down on high volume. The most notable press release was the two year sustainability of the original Scleradec I trial results. That was a very big deal, but the warrant overhang was simply too much. Cytori sought out the council of a few major tier one mutual funds (none of whom own the stock, but obviously follow it). They all told Cytori to get rid of the toxic warrants held by Sabby and a few others. The press release details the exchange ratio, which seemed to me like a win for Cytori although no cash will ever be received from these warrants being exercised. Once the 35 million shares have been dispersed to new owners, there will no longer be any overhead from these warrants. It may take another 20 or so days for the selling to be over.

WST was correct: ACT-OA six month data will be released sometime in January, not my guess of March 1st. While 13 week data was a primary end point, that data remains blinded. It is being used in active discussions with potential partners although still blind data. The ACT-Oa trial was designed to be a mirror of the six month data trials conducted by the companies that got FDA approval to sell the viscosupplements such as sinvisc and monovisc. If Cytori had unblinded the ACT-OA trial at 13 weeks, there was a possibility the FDA would have made them go back and add more N. They want to be sure they do everything in lock step with what got through the FDA. Makes good sense to me. The viscosupplements cost roughly $14,000 and work for three to six months. So it is important to show the six month data at the original unblinding.

MRI scans were done prior to treatment and will be done again at one year to detect any cartilage regeneration. I did not quite understand that timing since I would think the cartilage repair process would start immediately and be completed after six months. We will have to rely on Kesten for that call.

The companies that have shown the most interest in partnering are the manufacturers of the actual knee replacements. The top three are Johnson and Johnson, Styker, and Zimmer. There are five or six others. They have shown interest in additional applications beyond just the knee replacement market. This therapy would work for hips and shoulders as well. I could not get a sense as to the magnitude of the deals being discussed, but it was clear that upfront cash, milestone payments, and commercialization royalties were all involved and were standard components of any partnership of this nature.

One thing that I missed in the 3Q CC was that consumable sales to Japan were double what they were last year. The flat revenue is because of fewer sales of the Celution 800 which fetches $200,000 in Japan. I suppose the knowledge of the CTX2 is hurting hardware sales. But, I was glad to know the new laws are resulting in more patients being treated for ???

Bottom line remains about the same: the stock will be under pressure for a while longer until the scum is gone. Then it will be up to the data and the partnership news to pull us out or sink us.
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warrants (news) 18 Dec 2015 19:01 #5738

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Thanks for sharing DOV

Like the viscosupplement talk vs knee replacement markets...had the same talk recently with lodge member Paul.

Whatever the outcome....at least Tiago is trying to do something vs the old days
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