Hythiam raises $7 million from institutional investors

Hythiam, Inc. (NASDAQ:HYTM) announced today that on Tuesday, September 22, 2009 it closed the previously announced registered direct placement of 9,333,334 shares of its common stock to institutional investors at a price per share of $.75 for gross proceeds of $7 million. Investors also received warrants to purchase 2,333,334 shares of the Company’s common stock. The warrants have an exercise price of $.85 per share and are exercisable at any time after the closing of the transaction and before the 3rd anniversary of such initial issuance date.

The shares and warrants were offered by the Company pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission dated and declared effective on September 11, 2009.

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