This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Cell Therapeutics Begs for Survival

NEW YORK ( TheStreet) -- Cell Therapeutics (CTIC - Get Report) CEO Jim Bianco is being forced to beg for his job from the one group of people he has hurt the most over his career -- his own company's shareholders.

With cash dwindling and currently authorized shares almost depleted, Cell Therapeutics is in danger of bankruptcy unless a majority of shareholders vote to allow the small, money-losing biotech firm to increase the number of company shares to 1.2 billion from its present level of 800 million.

The shareholder vote will be tallied at Cell Therapeutics' annual shareholder meeting on Thursday, Sept. 16. Before that, Cell Therapeutics is scheduled to present at the Rodman & Renshaw investment conference on Tues. Sept. 14.

Since 2005, Cell Therapeutics shares have plunged more than 99.9%, hit again and again by clinical trial blowups and drug approval rejections. The stock closed Friday at 38 cents. The only biotech firms that have caused greater shareholder losses over this time period are no longer in business. The fact that Cell Therapeutics is still alive is somewhat of an unexplainable phenomenon but may be a testament to the quicksilver tongue and wily fund-raising ability of the company's chief executive.

Yet Bianco has run out of tricks. He can sell no more stock because the company has no more stock to sell. If Bianco is going to keep the lights on at Cell Therapeutics and continue to pull down his customary multi-million dollar package of salary, bonus, stock options and executive perks, he needs the help of shareholders.

Which is why the company is now groveling for the mercy of its shareholders, pleading with them to approve the share-boosting plan:

"We all have family or friends who have been struck down by cancer. At CTI, we believe we can make cancer more treatable for many cancer patients by advancing the products in our development pipeline – that is our mission," says a letter signed by Cell Therapeutics' CFO Louis Bianco, the brother of CEO Jim Bianco, and sent to shareholders recently.

"We are committed to bringing our drugs to cancer patients, but CTI needs your support," the letter continues. "Your vote can help us make a difference in the potential success of these drugs and in the lives of the patients who could someday benefit from them. Without your voting support, CTI may not be able to continue this research."

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,678.70 +6.10 0.03%
S&P 500 2,057.09 +5.27 0.26%
NASDAQ 4,771.7630 +13.8840 0.29%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs