CYTR is likely selling shares of RXII in the open market under their recent prospectus, and will be finished soon. Kreigsman has no other option to raise cash for CYTR to dress up the balance sheet before the end of the quarter. Expect CYTR to be totally divested by the end of 2010, which is the best thing that could happen for RXII. CYTR will sell stock in Q2, Q3 and Q4 in a measured way to create the appearance that they have cash to sustain their R&D, booking gains on the stock sales quarterly to offset their "gross" expenses. CYTR has no other asset and cannot go back to the PIPE guys to raise capital, even R&R won't touch them again. Once CYTR is out of RXII, expect Kreigsman and Hillsberg to resign from the BOD, and maybe others. RXII has made tremendous progress towards their goals over the last 6 months and has plenty of cash to sustain their business through mid 2011. The new CEO is the right person to bring the company to take-off and the Science is incredible. RXII has the "secret sauce" for RNAI delivery and is attracting attention. The big shorts would be well advised to cover here. I have owned this stock before the beginning and understand the potential very well.
They are burning about 1MM per month, which will take them through mid 2011. If the stock goes higher over the next year, which I believe it will, they will raise cash through warrant exercises. They could also add cash through partnerships with Big Pharma.