CTPartners To Raise $5 Million From Single Investor

February 1, 2015 – In an effort to raise cash after two failed stock offerings in the past 60 days, CTPartners on Friday priced a $5 million registered underwritten offering of its common stock at a discounted price of $3.44 per share to one institutional investor. Earlier in the day, the offering price had been set at $3 per share, but trading in the stock was briefly halted so that changes in the offering could be made to assure that it would not require stockholder approval under NYSE market rules. The offering is expected to close on February 4, subject to the satisfaction of customary closing conditions. Craig-Hallum Capital Group is acting as sole managing underwriter. Industry watchers see the move as a temporary fix, since the amount to be raised is less than half of what the company had been attempting to secure since December. Company insiders say the reduced cash infusion could put partner bonuses in jeopardy for the foreseeable future. “This alleviates the company’s current cash crunch and reduces the likelihood of more drastic scenarios,” said HSZ Media managing director Scott A. Scanlon. “The company has found some breathing space in terms of liquidity, but this move has cost CTPartners a lot in terms of dilution.” Shares of CTPartners, currently trading at $5.48 per share, were up 26 percent on the news, ending a volatile week of large trading swings in the stock.

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