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Cingulate Announces Closing of $7.5 Million Public Offering

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Biopharmaceutical company Cingulate Inc. (NASDAQ: CING) closed a public offering, raising $7.5 million in gross proceeds. The offering included 3,750,000 shares of common stock, Series A warrants, and Series B warrants. The company plans to utilize the net proceeds for research and development, commercialization activities, and general corporate purposes.
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The successful closing of Cingulate Inc.'s public offering is a significant financial event that warrants a closer examination of its potential impact on the company's fiscal health and strategic direction. With the company raising $7.5 million in gross proceeds, it's essential to scrutinize the allocation of these funds towards research and development, particularly for its lead candidate CTx-1301. The immediate availability of capital can accelerate the clinical pipeline, potentially shortening the time to market and enhancing shareholder value.

However, the introduction of additional shares and warrants could lead to dilution of existing shareholders' equity. The exercise of Series A and Series B warrants at an exercise price equal to the public offering price does not provide an immediate upside to warrant holders but does offer long-term confidence in the company's valuation. The dual expiration timeline of these warrants may induce varying degrees of speculative trading behavior, influencing the company's stock volatility in the short and long term.

In the competitive biopharmaceutical landscape, Cingulate Inc.'s proprietary Precision Timed Release™ (PTR™) drug delivery platform differentiates it from its peers. The capital infusion from this public offering is poised to bolster the company's position in the market by funding the advancement of CTx-1301. The biotech sector often hinges on the successful development and commercialization of lead candidates, which can be a catalyst for significant stock appreciation if clinical trial results are positive.

It's also important to note the role of H.C. Wainwright & Co. as the exclusive placement agent, which often indicates a level of due diligence and confidence in the offering's success. The gross proceeds figure is crucial for investors, as it provides a raw measure of the offering's scale before expenses, but the net proceeds will offer a more accurate picture of the funds available for the company's strategic initiatives.

Focusing on the scientific and medical implications, the financial resources garnered from this offering are projected to fuel the research and development of Cingulate Inc.'s lead candidate CTx-1301. The progression of this candidate through the clinical trial phases is critical, as it represents the potential to address unmet medical needs and generate future revenue streams.

The allocation of funds towards working capital and capital expenditures suggests a strategic approach to sustaining operations while pursuing growth opportunities. The balance between these allocations can significantly affect the company's ability to respond to market demands and regulatory requirements, which are particularly stringent in the biopharmaceutical sector.

KANSAS CITY, Kan., Feb. 06, 2024 (GLOBE NEWSWIRE) -- Cingulate Inc. (NASDAQ: CING) (“Cingulate,” the “Company,” “we,” “our” or “us”), a biopharmaceutical company utilizing its proprietary Precision Timed Release™ (PTR™) drug delivery platform technology to build and advance a pipeline of next-generation pharmaceutical products, today announced the closing of its public offering of an aggregate of 3,750,000 shares of its common stock (or common stock equivalents in lieu thereof), Series A warrants to purchase up to 3,750,000 shares of common stock and Series B warrants to purchase up to 1,875,000 shares of common stock, at a public offering price of $2.00 per share (or common stock equivalent in lieu thereof) and accompanying warrants. The Series A warrants have an exercise price of $2.00 per share, are exercisable immediately and will expire five years after the date of issuance, and the Series B warrants have an exercise price of $2.00 per share, are exercisable immediately and will expire two years after the date of issuance.

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

Total gross proceeds to the Company from the offering, before deducting the placement agent’s fees and other offering expenses, were $7.5 million. The Company intends to use the net proceeds from this offering for continued research and development and commercialization activities of its lead candidate CTx-1301, and for working capital, capital expenditures and general corporate purposes, including investing further in research and development efforts.

The securities described above were offered pursuant to a registration statement on Form S-1 (File No. 333-276502), which was declared effective by the Securities and Exchange Commission (the “SEC”) on February 2, 2024. The offering was made only by means of a prospectus forming part of the effective registration statement relating to the offering. A final prospectus relating to the offering has been filed with the SEC and is available on the SEC’s website at http://www.sec.gov. Electronic copies of the final prospectus may also be obtained by contacting H.C. Wainwright & Co., LLC at 430 Park Avenue, 3rd Floor, New York, NY 10022, by phone at (212) 856-5711 or e-mail at placements@hcwco.com.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About Cingulate Inc.

Cingulate Inc., is a biopharmaceutical company utilizing its proprietary PTR drug delivery platform technology to build and advance a pipeline of next-generation pharmaceutical products, designed to improve the lives of patients suffering from frequently diagnosed conditions characterized by burdensome daily dosing regimens and suboptimal treatment outcomes. With an initial focus on the treatment of ADHD, Cingulate is identifying and evaluating additional therapeutic areas where PTR technology may be employed to develop future product candidates, including to treat anxiety disorders. Cingulate is headquartered in Kansas City.

Forward-Looking Statements:

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include all statements, other than statements of historical fact, regarding our current views and assumptions with respect to future events regarding our business, including statements with respect to our plans, assumptions, expectations, beliefs and objectives with respect to the intended use of proceeds from the offering, product development, clinical studies, clinical and regulatory timelines, market opportunity, competitive position, business strategies, potential growth opportunities, market and other conditions and other statements that are predictive in nature.

These statements are generally identified by the use of such words as “may,” “could,” “should,” “would,” “believe,” “anticipate,” “forecast,” “estimate,” “expect,” “intend,” “plan,” “continue,” “outlook,” “will,” “potential” and similar statements of a future or forward-looking nature. Readers are cautioned that any forward-looking information provided by us or on our behalf is not a guarantee of future performance. Actual results may differ materially from those contained in these forward-looking statements as a result of various factors disclosed in our filings with the SEC, including the “Risk Factors” section of our Annual Report on Form 10-K filed with the SEC on March 10, 2023 and the final prospectus filed with the SEC in connection with the public offering. All forward-looking statements speak only as of the date on which they are made, and we undertake no duty to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law.

Investor Relations:

Thomas Dalton
Vice President, Investor & Public Relations, Cingulate
tdalton@cingulate.com
913-942-2301

Matt Kreps
Darrow Associates
mkreps@darrowir.com
214-597-8200


Cingulate Inc. raised $7.5 million in gross proceeds from the public offering.

Cingulate Inc. intends to use the net proceeds from the offering for continued research and development, commercialization activities of its lead candidate CTx-1301, and for working capital, capital expenditures, and general corporate purposes.

The public offering by Cingulate Inc. included Series A warrants to purchase up to 3,750,000 shares of common stock and Series B warrants to purchase up to 1,875,000 shares of common stock.

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

The public offering price per share for Cingulate Inc. was $2.00.
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