Cytori Raises Cash In Stock Sale

Bruce V. Bigelow6/22/09

San Diego’s Cytori Therapeutics (NASDAQ: CYTX) says it is raising $850,000 today by selling shares to Seaside 88, a fund managed by Orlando, FL-based Seaside Capital Management, under a private placement agreement. Cytori, which has been developing regenerative medicine technologies for breast reconstruction and other treatments, says Seaside has agreed to purchase as many as 7.15 million shares over the next year—enabling the biotech to raise roughly $20 million, depending on share price. Cytori, which is selling shares to Seaside 88 through a shelf registration, says the purchases are scheduled to take place every two weeks, at a price determined by applying a 13 percent discount to the volume weighted average price per share of Cytori’s common stock.

Bruce V. Bigelow is the editor of Xconomy San Diego. You can e-mail him at bbigelow@xconomy.com or call (619) 669-8788