Cell Therapeutics agrees to sell 15,000 shares of Series 18 Preferred Stock to Quogue Capital

Cell Therapeutics, Inc. ("CTI") (Nasdaq and MTA: CTIC) today announced that it has agreed to sell 15,000 shares of its Series 18 Preferred Stock directly to Quogue Capital LLC and an affiliate of Perceptive Advisors LLC in a registered direct offering conducted without an underwriter or placement agent for gross proceeds of approximately $15 million (the "Offering").  The net proceeds from the Offering, after deducting estimated offering expenses, will be approximately $14.8 million.

Each share of Series 18 Preferred Stock will have a stated value of $1,000 per share and will be convertible at the option of the holder, at any time prior to the automatic conversion of such shares in certain circumstances, into a total of 15 million shares of registered common stock at a conversion price of $1.00 per share of common stock.  Shares of the Series 18 Preferred Stock will receive dividends in the same amount as any dividends declared and paid on shares of common stock, but would be entitled to a liquidation preference over the common stock in certain liquidation events.  The Series 18 Preferred Stock will have no voting rights on general corporate matters.

CTI plans to use the net proceeds from the Offering to continue Phase 3 trials of pacritinib and to support the commercialization of PIXUVRI^® (pixantrone) in Europe as well as for general corporate purposes, which may include, among other things, funding research and development, preclinical and clinical trials, the preparation and filing of new drug applications and general working capital.  The Offering is expected to close on or about September 18, 2013.