Cellceutix Corporation announced a private placement of 100,000 series A convertible preferred shares with an accredited investor at $10 per share for gross proceeds of $1,000,000 on May 8, 2012. The minimum investment accepted from any outside investor is $50,000. The securities will be issued pursuant to Regulation D. The company intends this transaction to last for more than one year. The tranches will take place every 30 days after the initial closing date for an amount of the lesser of $75,000 or 25% of the dollar value of the total volume traded during the preceding 22 trading days. The shares are convertible into common stock at the lesser of 85% of the closing bid price on the date of prior to each closing, or 85% of the lowest bid price for the 15 days prior to conversion. For each common share issued upon conversion of the preferred shares, a five year common stock purchase warrant shall be issued to the subscriber which warrant shall be exercisable at the conversion price of the common shares issued. The convertible preferred shares do not pay dividends. The common shares underlying the series A preferred shares and the common stock purchase warrants are subject to piggy back registration rights.

On the same day the company has raised $100,000 from the investor who subscribed to 10,000 shares.

On January 8, 2013, Cellceutix Corporation closed the transaction. The company raised $400,000 in this transaction.