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TOPIC: Rights Offering Priced

Rights Offering Priced 11 May 2016 08:01 #6945

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Shareholders get 1 30 month warrant for each 2 share purchased. Hedge funds got 1:1 last year and I think 5 year warrants (not sure about that). At $.26 pre-market price shares will be worth $3.90 post split. Units priced at $4.

We are distributing to holders of our common stock, at no charge, non-transferable subscription rights to purchase units. Each unit, which we refer to as a Unit, consists of one share of common stock and 0.5 of a warrant, which we refer to as the Warrants. Each whole Warrant will be exercisable for one share of our common stock. We refer to the offering that is the subject of this prospectus as the Rights Offering. In the Rights Offering, you will receive one subscription right for each share of common stock owned at 5:00 p.m., Eastern Time, on May 20, 2016, the record date of the Rights Offering, or the Record Date. The common stock and the Warrants comprising the Units will separate upon the closing of the Rights Offering and will be issued separately but may only be purchased as a Unit, and the Units will not trade as a separate security. The subscription rights will not be tradable.

Each subscription right will entitle you to purchase one Unit, which we refer to as the Basic Subscription Right, at a subscription price per Unit of $4.00, which we refer to as the Subscription Price. Each whole Warrant entitles the holder to purchase one share of common stock at an exercise price of $4.80 per share from the date of issuance through its expiration 30 months from the date of issuance. If you exercise your Basic Subscription Rights in full, and any portion of the Units remain available under the Rights Offering, you will be entitled to an over-subscription privilege to purchase a portion of the unsubscribed Units at the Subscription Price, subject to proration and ownership limitations, which we refer to as the Over-Subscription Privilege. Each subscription right consists of a Basic Subscription Right and an Over-Subscription Privilege, which we refer to as the Subscription Right.

The Subscription Rights will expire if they are not exercised by 5:00 p.m., Eastern Time, on June 9, 2016, unless the Rights Offering is extended or earlier terminated by the Company. If we elect to extend the Rights Offering, we will issue a press release announcing the extension no later than 9:00 a.m., Eastern Time, on the next business day after the most recently announced expiration date of the Rights Offering. We may extend the Rights Offering for additional periods in our sole discretion. Once made, all exercises of Subscription Rights are irrevocable.

We have not entered into any standby purchase agreement or other similar arrangement in connection with the Rights Offering. The Rights Offering is being conducted on a best-efforts basis and there is no minimum amount of proceeds necessary to be received in order for us to close the Rights Offering.

We have engaged Maxim Group LLC to act as dealer-manager in the Rights Offering.

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Rights Offering Priced 11 May 2016 08:17 #6947

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WST

I think most current stockholders may like this offer.

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Rights Offering Priced 11 May 2016 08:45 #6948

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Franshei,

It depends on the stock price on the expiration date of the offer. It is a risky way to try and raise capital but an understandable route given the previous equity rape financings. It's not looking good now with the shares at $3,20 post split.

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Rights Offering Priced 11 May 2016 08:57 #6950

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Is the price already fixed? 4 per share and 4.80 for the warrants?

(2*4.00)+4.80= 12.80$ for 3 shares

if you bought today 3 shares (3* 0.21)*15= 9.45$ for 3 shares

or am I totally wrong?

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Rights Offering Priced 11 May 2016 09:56 #6951

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carl wrote: Is the price already fixed? 4 per share and 4.80 for the warrants?

(2*4.00)+4.80= 12.80$ for 3 shares

if you bought today 3 shares (3* 0.21)*15= 9.45$ for 3 shares

or am I totally wrong?


The warrant does not require a cash lay-out i.e. payment until you decide to convert the warrant into a share. That can wait 2,5 years to see if that makes economic sense. So - not totally wrong, but a bit wrong, since CYTX maybe bankrupt or worth 20$ per share in two years time... :grin:

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Rights Offering Priced 11 May 2016 09:59 #6952

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You get 1 share and a half of a 30 month warrant struck at $4.80

At $.24 one share is now worth $3.60 post split

So at that price you would be paying $.80 for the warrant at a unit price of $4.00

If the shares are trading above $.2666 ($4.00 post split) you get the warrants for free.

The hedge funds got a better deal last year, IMHO, and they had the opportunity to do it in two traunches with a lower price on the second.

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Rights Offering Priced 11 May 2016 10:08 #6953

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this offering is a joke too. I'll just wait until December when the share price is hammered back to $1.00

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Rights Offering Priced 11 May 2016 11:36 #6954

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They should call it ripoff instead of offering.
I wonder if any MGMT member will subcribe to this ripoff.

Sorry but I don't see anything positive in this "offering".
They don't deserve another penny of my hard earned money.

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Rights Offering Priced 11 May 2016 11:38 #6955

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I think after the r/s, there will be some catalysts coming (just like what STEM is doing now) to make the right offering a steal. I think Tiago Girao is learning fast since his arrival how to do things better than before.

I think with some catalysts, CYTX will also put the ATM into play.

Just my opinions.

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Rights Offering Priced 11 May 2016 13:13 #6957

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Yeah Fran, looks likeTiago learned some tricks from Saad, and I am sure that's comforting. They even now have pansies kike Jason from Maxim lobbing soft ball questions along with the other phony so called analysts that perpetuate this disaster so they can underwrite more shares and collect fees. Not a question on the r/s from these clowns or the rights offering. Mark slides in the r/s with one sentence and moves on. :puke: As I said if there is a news flow coming then it was inexcusable bordering perhaps on criminal what has been done to shareholders of Cytori. This is now going to get interesting. :bash: :KO: :evil:

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Rights Offering Priced 11 May 2016 13:31 #6959

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carl,

Last I spoke to Tiago I suggested that senior management, especially Marc and the BOD should be stepping up and putting up money in the offering. If they don't, especially Marc, then they are not putting their money where their mouth is. Marc should put up at least $100K.
The following user(s) said Thank You: carl

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Rights Offering Priced 12 May 2016 07:07 #6963

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WST,

In addition to management participation, the company should announce the creation of a deferred compensation plan. Under this plan, all bonuses would be deferred until such time they can be paid from positive cash flow (presumably 2019). In addition, they should enact a salary freeze for the same term. The DCP could apply to one's regular salary on a personal election basis with a matching component.

Without this plan, investors are funding cash bonuses based on finishing trials rather than shareholder value creation. Hedrick got over 800,000 options priced at $.19 good for 10 years on January 4th. The cost of capital is at a record high. The only good thing is existing stockholders get to win from this instead of the likes of Sabby.

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Rights Offering Priced 12 May 2016 07:26 #6965

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DOV wrote: WST,

In addition to management participation, the company should announce the creation of a deferred compensation plan. Under this plan, all bonuses would be deferred until such time they can be paid from positive cash flow (presumably 2019). In addition, they should enact a salary freeze for the same term. The DCP could apply to one's regular salary on a personal election basis with a matching component.

Without this plan, investors are funding cash bonuses based on finishing trials rather than shareholder value creation. Hedrick got over 800,000 options priced at $.19 good for 10 years on January 4th. The cost of capital is at a record high. The only good thing is existing stockholders get to win from this instead of the likes of Sabby.


Now that sounds like a reasonable plan. Last night whilst thinking about the Rights Offering, the thought of having to finance part of Hedrick´s bonus money and extraordinary salary already made me balk at the whole idea of participation. With this in the background, it becomes less of a gigantic obstacle.

Who is going to propose this- are you? Surely Hedrick will not think himself about such a thing.... :whistle:

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Rights Offering Priced 12 May 2016 07:32 #6967

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DOV,

Its a great idea but I'm sure you know it will never happen. There is a bigger problem developing here. The stock is now looking like it will open around $3. That price makes the rights offering very unlikely to succeed. Those same hedge funds who participated in the last equity rape financing could put Cytori in a position to go back to them for funding by shorting the stock in advance of the expiration of the rights and causing it to fail. Obviously that would be a disaster. One thing is for sure, no one will exercise rights unless there is a healty built in profit.

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Rights Offering Priced 12 May 2016 08:59 #6968

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DOV
Are you dipping into the same stuff that came up with a $500 pps target with the deferred compensation plan ? LOL. I agree with WST, good idea but no way it is even remotely considered by the folks at Cytori.

WST
Do they want the rights plan to succeed ? I am still in the camp of a secure raise that meant a 1:20 R/S and immediately tapping the ATM to raise the funds and yes a bit more cash than they say they need. I guess they still could have done it at 1:15 rate but my way had a better buffer. At this rate they may be forced into such a move at again horrible pricing !!! Fas still hoping for the CC white knight.

Above said, I am a bit surprised we are already trading post split today, although like I said the other day I haven't been closely following last few days.

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Rights Offering Priced 12 May 2016 09:28 #6969

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Hedge,

The problem with the ATM is the trading volume would not support raising much funding. BTW, nothing is stopping them from doing the ATM as we speak, is there?

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Rights Offering Priced 12 May 2016 09:37 #6970

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All, this is all BS. Nobody was in favor of R?S except management the BOD and the slimy bastards that control the company. No shareholders like ourselves were. Tiago knows it. They made a decision in there own best interest shareholders be dammed. They are trying to cover there asses with this BS rights offering which is not at all shareholder friendly. Why do some insist on continuing to play with themselves and believe they actually give a dam about shareholders. I will expose this for what this is. They have fucked with the wrong guy. Best of luck to all and stop kidding yourselves. :puke: :bang: :cool: :bash: :bash: :bash: :bash: :bash: :puke: :puke: :puke:

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Rights Offering Priced 12 May 2016 10:23 #6973

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WST...yes they could be selling some ATM shares now...doubt it but possible. Why don't they just "place" shares with the institutions advising them...LOL
Will we be able to hold $3 today or for the week is the current question.

Yesterday Interactive Brokers had 4 million shares available for shorting...today I cant get anything to come up...does someone have a claim on all of those shares now or is it a glitch in their system ? Other stocks are displaying though. Maybe a issue post R/S as STEM also doesn't display.

$2.98 now :cry:

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Rights Offering Priced 12 May 2016 12:19 #6974

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myownhedgefund wrote: Do they want the rights plan to succeed ? I am still in the camp of a secure raise that meant a 1:20 R/S and immediately tapping the ATM to raise the funds and yes a bit more cash than they say they need. I guess they still could have done it at 1:15 rate but my way had a better buffer. At this rate they may be forced into such a move at again horrible pricing !!! Fas still hoping for the CC white knight..


This whole rights offering and the way it has been handled smells extremely like the toxic financings in October 2014 and ensuing disasters.. amateur like and similar to the rabbit in front of the anaconda.

Really only exception could be that they have a FINANCIAL deal to announce AFTER the 20th- for which reason I brought up CC again.

In view of past performance this is somewhat unlikely, so one can only cross one´s fingers and shiver what is to come next. However I refuse to believe they are as stupid as the way they look right now.... :bang: :bash: :bash:

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Rights Offering Priced 12 May 2016 15:09 #6977

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DOV wrote: WST,

In addition to management participation, the company should announce the creation of a deferred compensation plan. Under this plan, all bonuses would be deferred until such time they can be paid from positive cash flow (presumably 2019). In addition, they should enact a salary freeze for the same term. The DCP could apply to one's regular salary on a personal election basis with a matching component.

Without this plan, investors are funding cash bonuses based on finishing trials rather than shareholder value creation. Hedrick got over 800,000 options priced at $.19 good for 10 years on January 4th. The cost of capital is at a record high. The only good thing is existing stockholders get to win from this instead of the likes of Sabby.


I rage emailed the entire BOD with the exact same sentiment. They just brush aside the small shareholders. All they want is to stay listed on Nasdaq for their dozen big investors. Those are the ones feeding their lifestyles.

If they were passionate entrepreneurs, go to OTC and wait patiently for approvals. Cut all the VP's and all the in-house counsel and wait for FDA approval. Then seek financing. Hedrick needs his salary. He needs his lifestyle. So does Rickey. Self-serving.

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