Friday, October 5, 2012

Stocks In News: Cell Therapeutics Inc (NASDAQ:CTIC) & Avon Products Inc (NYSE:AVP)

Cell Therapeutics Inc(NASDAQ:CTIC), headquartered in Seattle, announced the sales of 60,000 shares of its Series 17 preferred stock.

The offering price to the public for the purchases is $1000 per share which will fetch them $60 million in against it.

The proceeds from the offering will be used to "support the launch of Pixuvri (pixantrone) in Europe and to commence phase III trials of pacritinib as well as for general corporate purposes, which may include, among other things, funding research and development, preclinical and clinical trials, the preparation and filing of new drug applications, the acquisition of complementary businesses, technologies or products and general working capital," as said by Cell Therapeutics in a statement.

The holder, at its option can convert each of his preferred stock into approximately 714 shares of common stock at a conversion price of $1.40 per share of common stock.

Rights of receiving dividends in the same amount as any dividends declared and paid on shares of common stock is applicable to shares of Series 17 Preferred Stock, but they are not entitled to a liquidation preference over the common stock in certain liquidation events.

The Series 17 Preferred Stock will have no voting rights on general corporate matters.

Shares fell more than 22 percent in opening session.

Former Chief Executive Officer Andrea Jung for Avon Products, Inc.(NYSE:AVP), the door-to-door cosmetics seller, will step down as executive chairman.

Appointed as the first female leader in 1999 for Avon, Jung promoted the cosmetic giant as “the company for women”. Serving as the face of the brand she became its large female sales representative force.
Her tenure covers slump earnings, a foreign-bribery investigation and a takeover attempt.

In a telephonic interview, Rommel Dionisio, an analyst at Wedbush Securities in New York, said “Given the sour taste that the last several quarters of her tenure left in some people’s mouths, I’d view this as a positive for the stock overall,” he even recommends on holding the shares.

Jung will continue as a senior adviser to the board from next year beginning on January 1. The lead independent director, Fred Hassan, will succeed her and become non-executive chairman at that time.
Shares of AVP rose 6% to $17.22.

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