CytRx Corp. has attracted a $7 million investment from certain institutional investors who will buy 5,600,000 shares of the company at $1.25 each.

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

The offering is expected to close by May 15 with H.C. Wainwright & Co. acting as the exclusive placement agent.

The company is developing cancer treatments.