Cyclacel Pharmaceuticals Inc (NASDAQ:CYCC) shares are trading higher by 65% to 61 cents during Friday’s session after the company announced a securities purchase agreement with investor David Lazar for the sale of Series C and Series D Convertible Preferred Stock for $3.1 million in gross proceeds.
What To Know: Lazar will acquire 1 million shares of Series C Convertible Preferred Stock for $1 million initially, with the potential to convert these shares into common stock, subject to a 5% ownership cap pending stockholder approval.
Upon approval, a second transaction will involve 2.1 million shares of Series D Convertible Preferred Stock for $2.1 million, convertible into 110 shares of common stock per preferred share.
As part of the agreement, the board was restructured, with David Lazar assuming the role of interim CEO. Cyclacel also entered a Warrant Exchange Agreement, converting existing warrants into 24.8 million shares of common stock and $1.1 million cash.
The company says it faces challenges meeting Nasdaq’s equity requirements, with a February 2025 compliance deadline, and continues exploring strategic alternatives.
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How To Buy CYCC
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in Cyclacel Pharmaceuticals’ case, it is in the Health Care sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
According to data from Benzinga Pro, CYCC has a 52-week high of $4.00 and a 52-week low of $0.31.
