Cytori Therapeutics Inc (CYTX) Falls Below 52-Week Low After Reaching Deal With Warrant Holders

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Cytori Therapeutics Inc (NASDAQ:CYTX) shares are down big today, falling below the 52-week low of $0.23 cent, actually reaching $0.16 at one point in the day. The stock is being sold off after the company released a bit of news.

Cytori Therapeutics Inc (NASDAQ:CYTX) announced that they have reached agreements with those holding Series A-1 and A-2 warrants which were issued in May and August, as well as those issued in October of last year. In order to create more liquidity and flexibility within the company these warrants, if elected to by the holders of them, will be converted to approximately 36.5 million shares of stock.

“We believe that these warrant exercises are mutually beneficial to both our stockholders and Cytori,” said Dr. Marc H. Hedrick, CEO of Cytori Therapeutics Inc (CYTX). “In terms of our financials, these exercises simplify our balance sheet and our equity structure. Operationally, we believe these agreements and subsequent warrant exercises will improve our attractiveness to potential commercial partners as we near milestones in our US osteoarthritis and US and European scleroderma programs. On a related note, based on continued success of our expense reduction initiative, we can at this time, update our 2015 operating cash burn guidance for the full year down to $22 million, $3 million less than our initial guidance of $25 million disclosed in the beginning of 2015.”

The stock is down 26.20% or $0.071 following the news, hitting $0.201 per share. About 11.75M shares traded hands or 796.95% up from the average. CYTX has declined 59.09% since May 15, 2015 and is downtrending. It has underperformed the S&P500 by 56.83%.

From a total of 2 analysts covering Cytori Therapeutics (NASDAQ:CYTX) stock, 1 rate it a “Buy”, 0 a “Sell”, and 1 a “Hold”. This means that 50% of the ratings are positive. The highest target price is $5 while the lowest target price is $4.0. The mean of all analyst targets is $4.50 which is 2138.81% above today’s ($0.201) stock price. Cytori Therapeutics was the topic of 3 analyst reports since August 8, 2015 according to the firm StockzIntelligence Inc. Zacks upgraded shares on September 4 to a “Hold” rating. Maxim Group maintained CYTX stock in a recent report from August 8 with a “Buy” rating.

The institutional sentiment decreased to 0.53 in Q2 2015. It’s down 0.53, from 1.06 in 2015Q2. The ratio worsened, as 18 funds sold all their Cytori Therapeutics Inc shares they owned while 14 reduced their positions. 4 funds bought stakes while 13 increased their total positions. Institutions now own 20.08 million shares which is 26.13% less than the previous share count of 27.19 million in 2015Q2.

Perkins Capital Management Inc holds 0.49% of its total portfolio in Cytori Therapeutics Inc, equating to 1.29 million shares. Princeton Capital Management Inc owns 509,490 shares representing 0.1% of their total US portfolio. Moreover, Redmond Asset Management Llc has 0.04% of their total portfolio invested in the company, equating to 201,633 shares. The New Jersey-based Sabby Management Llc has a total of 0.04% of their portfolio invested in the stock. Marathon Capital Management, a Maryland-based fund reported 162,000 shares owned.

Cytori Therapeutics, Inc. is a biotechnology firm involved in the development of treatments and devices for a range of disorders using cells as a key part of the therapy. The company has a market cap of $44.58 million. The Firm is engaged in developing primary product, Cytori Cell Therapy, for patients with scleroderma hand dysfunction, orthopedic disorders, cardiovascular disease, urinary incontinence and thermal burns combined with radiation injury. It currently has negative earnings. The Firm commercializes the Celution System under select medical device approvals, clearances and registrations to research clients developing new therapeutic applications for Cytori Cell Therapy in Europe, Japan and other regions.

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