CytRx Corp. announced that its board of directors has approveda tender offer for 448 shares of CytRx Series A preferredstock at $1,068 per share.
The offer, which the Norcross, Ga., company expects tocommence in the next several days, expires on July 16 and isconditioned on at least 200 shares being tendered.
The purpose of the tender offer is to allow for the transfer ofvoting powers vested in the preferred shares to the holders ofCytRx common stock (NASDAQ:CYTR). Currently, holders ofpreferred shares are entitled to elect three of the fivemembers of the board of directors. Upon successful completionof the tender offer, the shares of preferred stock will beplaced in a trust, and will be voted in accordance with thedirections of the holders of common stock.
The preferred shares are to be redeemed by the company inOctober 1996, at 1 cent per share, at which time the trust willbe dissolved.
The common stock was unchanged on Monday, closing at $5.25 ashare.
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