CytoSorbents Strengthens Balance Sheet with Closing of Oversubscribed Rights Offering

Core Viewpoint - CytoSorbents Corporation successfully completed an oversubscribed rights offering, raising $6.25 million, which will enhance its liquidity and satisfy a debt covenant, unlocking an additional$5 million in restricted cash [1][3][4] Group 1: Rights Offering Details - The rights offering was oversubscribed by 68%, with total demand reaching 10,514,896 Units, while the company sold all 6,250,000 Units reserved for the offering [2] - Participants received Units that include one share of common stock and two types of Right Warrants, allowing for the purchase of additional shares [1][2] - The leadership team and Board of Directors subscribed for approximately 450,000 Units prior to any pro-rata adjustments [2] Group 2: Financial Impact - The proceeds from the rights offering satisfy a debt covenant, allowing $5 million of restricted cash to become unrestricted, increasing the company's net liquidity to approximately$10.8 million after related offering fees [3] - The estimated pro forma cash balance as of December 31, 2024, would be approximately $15.4 million, including$13.9 million in unrestricted cash [5] - Excluding the rights offering, the preliminary estimated cash balance was approximately $9.6 million, down from$12.2 million as of September 30, 2024, reflecting a cash burn of approximately $2.6 million in Q4 2024 [6] Group 3: Future Plans and Developments - The CEO expressed optimism about the rights offering's success, which will support innovation and the pursuit of U.S. and Canadian approvals for the DrugSorb-ATR product in 2025 [4] - CytoSorbents is developing the DrugSorb-ATR system to reduce perioperative bleeding in high-risk surgeries, with FDA Breakthrough Device Designations received for its applications [17]