In a recent 8-K filing with the Securities and Exchange Commission, Citius Pharmaceuticals (NASDAQ:CTXR), Inc. has announced the extension of an employment agreement with Myron Holubiak, the company's Executive Vice Chairman, until October 31, 2025. The original term was set to expire on October 31, 2024. Holubiak's responsibilities include building the commercial team and overseeing the launch of the company's initial commercial products. This extension reflects the company's ongoing commitment to its leadership as it approaches significant product milestones.
Additionally, the Board of Directors approved a one-year extension for certain warrants. These include Investor Warrants held by Leonard Mazur, CEO and Chairman, and Myron Holubiak, which are now extended to September 27, 2025. Originally issued in September 2019, these warrants allow for the purchase of 2,793,297 shares of common stock at an exercise price of $0.77 per share. Underwriter Warrants, held by representatives of H.C. Wainwright & Co. or their assignees, were also extended to the same date. These Underwriter Warrants have an exercise price of $1.11875 per share. If fully exercised, these warrants could provide Citius Pharmaceuticals with approximately $2.4 million in cash proceeds.
The terms of the warrants remain unchanged, with the extensions providing an additional year for exercise. The details of these warrant agreements were outlined in previous SEC filings by the company.
Citius Pharmaceuticals, listed on the Nasdaq Capital Market under the ticker CTXR, is a pharmaceutical company with a focus on developing and preparing to launch pharmaceutical preparations. The company's headquarters is located in Cranford, New Jersey.
In other recent news, Citius Pharmaceuticals has seen notable developments. The company successfully deferred a significant FDA milestone payment for its product, LYMPHIR™, according to a recent 8-K filing. The details of the deferral, agreed upon with Dr. Reddy’s Laboratories SA, remain undisclosed.
Citius Pharmaceuticals also faces potential delisting from the Nasdaq Capital Market due to non-compliance with the minimum bid price requirement. The company intends to request a hearing before a Nasdaq Hearing Panel to delay any delisting action.
The FDA recently approved Citius Pharmaceuticals' novel immunotherapy, LYMPHIR™, for the treatment of relapsed or refractory cutaneous T-cell lymphoma in adult patients. This marks the company's first FDA-approved product.
Citius Pharmaceuticals also announced a merger with TenX Keane Acquisition, with Citius set to hold approximately 90% of the new entity, Citius Oncology, Inc. The merger is expected to enhance the potential commercialization of LYMPHIR™.
Furthermore, Citius Pharmaceuticals reported successful Phase 3 trials of Mino-Lok, an antibiotic lock solution, meeting its primary endpoint. EF Hutton initiated coverage on Citius Pharmaceuticals, issuing a Buy rating and highlighting the company's late-stage therapeutics, Mino-Lok and LYMPHIR™.
InvestingPro Insights
Citius Pharmaceuticals' recent leadership and warrant extensions come at a critical time for the company, as reflected in the latest InvestingPro data. With a market capitalization of $93.44 million, CTXR is currently trading at $0.52 per share, which is 48.79% of its 52-week high. This pricing suggests significant investor caution, possibly due to the company's financial performance.
InvestingPro Tips highlight that CTXR holds more cash than debt on its balance sheet, which could provide some financial flexibility as it approaches product launches. However, the company is not profitable over the last twelve months, with an adjusted operating income of -$41.07 million. This aligns with another InvestingPro Tip indicating that analysts do not anticipate the company to be profitable this year.
The extension of warrants, if exercised, could bring in approximately $2.4 million, which may be crucial given the company's current financial position. However, investors should note that CTXR's stock has taken a significant hit over the last week, with a 1-week price total return of -9.28%, reflecting the volatile nature of the stock as mentioned in the InvestingPro Tips.
For investors considering CTXR, it's worth noting that InvestingPro offers 8 additional tips that could provide further insights into the company's prospects. These additional tips, along with real-time metrics, could be valuable for those looking to make informed decisions about Citius Pharmaceuticals' stock.
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