CytoSorbents Strengthens Balance Sheet with Successful Conclusion of Rights Offering

On January 13, 2025, CytoSorbents Corporation (NASDAQ: CTSO) announced the successful culmination of its oversubscribed Rights Offering, generating $6.25 million in aggregate gross proceeds, as detailed in its press release. The offering proceeds have not only met the subscription demand but also allowed the company to fulfill a debt covenant. This release was in relation to preliminary unaudited financial results and business updates for the quarter and year ending December 31, 2024.

The oversubscribed Rights Offering totaled 10,514,896 units, indicating a 68% oversubscription rate. This high level of interest from investors resulted in the total sale of all 6,250,000 units reserved for the offering. Each unit consisted of a share of common stock, a Series A Right Warrant, and a Series B Right Warrant, providing shareholders with an additional opportunity to purchase more shares.

Proceeds from the Rights Offering have enabled CytoSorbents to unlock $5.0 million in restricted cash, thereby bolstering the company’s financial position. The company’s net liquidity has significantly increased by approximately $10.8 million, after deducting related offering fees.

Dr. Phillip Chan, the Chief Executive Officer of CytoSorbents, expressed satisfaction with the outcome of the Rights Offering, emphasizing the strengthened balance sheet that will support the company in driving innovation and execution in its core international business. The increased liquidity will provide leverage as the company seeks U.S. and Canadian approvals and launches in 2025. Dr. Chan thanked the shareholders for their support and confidence in the company’s vision and progress.

Regarding the estimated financials, the pro forma balance as of December 31, 2024, post the Rights Offering, reflects approximately $15.4 million in cash, cash equivalents, and restricted cash, with unrestricted cash amounting to $13.9 million. Excluding the Rights Offering financing impact, the company had an estimated $9.6 million in cash, cash equivalents, and restricted cash on December 31, 2024, compared to $12.2 million on September 30, 2024.

Additionally, management of CytoSorbents is engaging in investor meetings in San Francisco this week, coinciding with the 43rd Annual J.P. Morgan Healthcare Conference from January 13-16, 2025. The company is also participating in the Biotech Showcase™ 2025 with Dr. Phillip Chan being part of a panel discussion on January 15, 2025.

Investors can look forward to ongoing developments as CytoSorbents continues its mission to innovate in the treatment of life-threatening conditions in the intensive care unit and cardiac surgery through blood purification technologies.

It’s crucial to note that the above statements contain forward-looking statements governed by the Private Securities Litigation Reform Act of 1995. These statements are based on management’s judgment and expectations and are subject to risks and uncertainties, as outlined in the company’s filings with the SEC.

For more detailed information on CytoSorbents Corporation, including its proprietary blood purification technologies and current projects, you can visit the company’s official website at https://ir.cytosorbents.com/.

The company encourages investors to carefully consider the risks and factors that could impact its business and pledges to provide timely updates on any developments that may affect future operations.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Cytosorbents’s 8K filing here.

Cytosorbents Company Profile

Cytosorbents Corporation engages in the research, development, and commercialization of medical devices with its blood purification technology platform incorporating a proprietary adsorbent and porous polymer technology in the United States, Germany, and internationally. Its flagship product is CytoSorb, an extracorporeal cytokine adsorber for adjunctive therapy in the treatment of sepsis, adjunctive therapy in other critical care applications, prevention, and treatment of perioperative complications, and maintaining or enhancing the quality of solid organs harvested from donors for organ transplant; and offers VetResQ, a device for adjunctive therapy in the treatment of sepsis, pancreatitis, and other critical illnesses in animals.