CytRx Corp. closed its direct offering of 5.6 million common shares at $1.25 apiece to raise $7.0 million in gross proceeds.

The company received about $6.5 million in net proceeds from the offering.

CytRx plans to use the net proceeds for working capital and general corporate purposes, including possible new drug discovery activities and acquisitions or mergers.

H.C. Wainwright & Co. acted as the exclusive placement agent for the offering.

Los Angeles, Calif.-based CytRx is a biopharmaceutical company specializing in research and clinical development of novel anti-cancer drug candidates that employ linker technologies to enhance the accumulation and release of drug at the tumor.