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CYTX Offering, Immediate Dilution and Increase in Net Tangible Book Value

The pre-market upon the offering announcement dropped the stock to $4.68 post a close on 10/7/10 of $5.34.  After giving effect to the sale of 4 M shares of common stock in this offering at the public offering price of $4.50 per share and after deducting the underwriting discounts, commissions and estimated offering expenses payable by CYTX; the adjusted net tangible book value as of 6/30/10 would have been approximately $26.4M, or $0.53 per share (from prospectus).

  • CYTX’s net tangible book value as of 6/30/10 was approximately $9.65 M, or $0.21 per share;
  • This represents an immediate increase in net tangible book value of $0.32 per share to existing stockholders and immediate dilution in net tangible book value of $3.97 per share to investors purchasing common stock in this offering at the public offering price;
  • If the underwriter exercises in full its option to purchase 600,000 additional shares of common stock at the public offering price of $4.50 per share, the as adjusted net tangible book value after this offering would be $0.57.