Cardiol Therapeutics Announces Closing of Bought Deal Financing and Full Exercise of Over-Allotment Option for Gross Proceeds of $14.85 Million
Rhea-AI Summary
Cardiol Therapeutics (NASDAQ: CRDL) closed a private placement on January 23, 2026, raising $14.85 million through the issuance of 11,423,078 Units at $1.30 per Unit, including full exercise of the over‑allotment option. Each Unit comprises one common share and one‑half of a warrant; each whole warrant is exercisable at $1.75 for 24 months. Canaccord Genuity acted as sole underwriter and the company paid a 6% cash commission. Net proceeds are intended for research and clinical development, general and administrative expenses, working capital, and other expenses. The offering was completed as a private placement under Canadian prospectus exemptions and the securities are not registered in the United States.
Positive
- $14.85M gross proceeds from the financing
- Full exercise of the over‑allotment option indicating added demand
- 11,423,078 Units issued to fund clinical and R&D programs
- Warrants exercisable at $1.75 for 24 months could provide additional capital if exercised
Negative
- 6% cash commission paid to the underwriter
- Issuance of 11,423,078 Units creates immediate dilution risk for shareholders
- Warrants, if exercised, will increase share count over the next 24 months
News Market Reaction – CRDL
On the day this news was published, CRDL declined NaN%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Peer moves were mixed: ASRT and INCR showed small gains (up 0.26% and 0.44%), while DRRX, ANIK, and BIOA declined (down to -5.59%). With no peers in the momentum scanner and moves in both directions, trading around CRDL appears more company‑specific than sector‑driven.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 16 | Bought deal financing | Neutral | +10.1% | Announced bought deal private placement with warrants to raise $13.5 million. |
| Jan 13 | Clinical enrollment | Positive | +1.3% | MAVERIC Phase III trial surpassed 50% enrollment across North American and European sites. |
| Dec 01 | Phase II results | Positive | -9.5% | ARCHER Phase II data showed structural heart improvements in acute myocarditis. |
| Nov 13 | Patent allowance | Positive | -1.9% | Received U.S. patent allowance protecting key heart drugs through October 2040. |
| Nov 05 | Data presentation | Positive | +3.8% | Announced upcoming full ARCHER Phase II data presentation at ESC scientific meeting. |
Positive clinical and IP news has sometimes seen muted or negative next‑day moves, while financings have been absorbed with modest gains.
Over the last few months, Cardiol has combined clinical progress with balance sheet actions. A bought deal financing announced on Jan 16, 2026 was followed by a 10.07% gain, suggesting prior equity issuance was reasonably accepted. Key milestones include surpassing 50% enrollment in the pivotal Phase III MAVERIC trial and encouraging Phase II ARCHER data in acute myocarditis. A U.S. patent allowance extending protection to 2040 strengthened IP. Today’s closing of the enlarged financing builds directly on the Jan 16 deal terms and structure.
Market Pulse Summary
This announcement confirms closing of a previously announced bought deal private placement, including full exercise of the over‑allotment option, for gross proceeds of $14.85 million. Units were priced at $1.30 and include half‑warrants exercisable at $1.75 for 24 months. The company plans to use net proceeds to fund research, clinical development, and general expenses. In context of ongoing Phase III and Phase II programs, investors may watch execution milestones and future capital needs.
Key Terms
bought deal financing financial
over-allotment option financial
private placement financial
National Instrument 45-106 regulatory
Listed Issuer Financing Exemption regulatory
Regulation S regulatory
AI-generated analysis. Not financial advice.
Toronto, Ontario--(Newsfile Corp. - January 23, 2026) - Cardiol Therapeutics Inc. (NASDAQ: CRDL) (TSX: CRDL) ("Cardiol" or the "Company"), a late-stage life sciences company focused on advancing the development of anti-inflammatory and anti-fibrotic therapies for heart disease, today announced that it has closed its previously announced private placement of units (the "Units") of the Company (the "Offering"), including the full exercise of the over-allotment option. Canaccord Genuity Corp. (the "Underwriter") acted as sole underwriter and sole bookrunner for the Offering. Pursuant to the Offering, the Company issued an aggregate of 11,423,078 Units at a price of
Each Unit consists of one Class A common share of the Company (each, a "Common Share") and one-half of one Common Share purchase warrant (each, a "Warrant"). Each whole Warrant entitles the holder thereof to purchase one Common Share (each, a "Warrant Share") at an exercise price of
The Company intends to use the net proceeds of the financing to advance its research and clinical development programs and for general and administrative expenses, working capital, and other expenses.
The Offering was completed by way of a private placement pursuant to National Instrument 45-106 - Prospectus Exemptions ("NI 45-106") under Part 5A, as amended by CSA Coordinated Blanket Order 45-935 - Exemptions from Certain Conditions of the Listed Issuer Financing Exemption (the "Listed Issuer Financing Exemption") to qualified investors in each of the provinces and territories of Canada (other than Quebec). The Underwriter was entitled to offer the Units for sale in certain jurisdictions outside of Canada and the United States, provided it is understood that no prospectus filing or comparable obligation, ongoing reporting requirement or requisite regulatory or governmental approval arises in such other jurisdictions. The Units issued under the Listed Issuer Financing Exemption are not subject to resale restrictions in Canada pursuant to applicable Canadian securities laws.
THIS PRESS RELEASE SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY SECURITIES IN THE UNITED STATES, NOR SHALL THERE BE ANY SALE OF THE SECURITIES IN ANY JURISDICTION IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL. THE SECURITIES BEING OFFERED HAVE NOT BEEN, NOR WILL THEY BE, REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), OR UNDER ANY U.S. STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE "UNITED STATES" OR TO "U.S. PERSONS" (AS SUCH TERMS ARE DEFINED IN REGULATION S UNDER THE 1933 ACT) ABSENT REGISTRATION UNDER THE 1933 ACT, AND APPLICABLE STATE SECURITIES LAWS, OR COMPLIANCE WITH THE REQUIREMENTS OF EXEMPTIONS THEREFROM.
About Cardiol Therapeutics
Cardiol Therapeutics Inc. (NASDAQ: CRDL) (TSX: CRDL) is a late-stage life sciences company focused on advancing the development of anti-inflammatory and anti-fibrotic therapies for heart disease. The Company's lead small-molecule drug candidate, CardiolRx™, modulates inflammasome pathway activation, an intracellular process known to play an important role in the development and progression of inflammation and fibrosis associated with pericarditis, myocarditis, and heart failure.
The MAVERIC Program is evaluating CardiolRx™ for the treatment of recurrent pericarditis, an inflammatory disease of the pericardium associated with symptoms including debilitating chest pain, shortness of breath, and fatigue, which can lead to physical limitations, reduced quality of life, emergency department visits, and hospitalizations. The program comprises the completed Phase II MAvERIC-Pilot study (NCT05494788) and the ongoing pivotal Phase III MAVERIC trial (NCT06708299). The U.S. FDA has granted Orphan Drug Designation to CardiolRx™ for the treatment of pericarditis, including recurrent pericarditis.
The ARCHER Program is also studying CardiolRx™, specifically in acute myocarditis-an important cause of acute and fulminant heart failure in young adults and a leading cause of sudden cardiac death in individuals under 35 years of age. The program comprises the completed Phase II ARCHER study (NCT05180240), which evaluated the safety, tolerability, and efficacy of CardiolRx™ in this patient population.
The Company is also developing CRD-38, a novel, subcutaneously administered drug formulation intended for the treatment of inflammatory heart disease, including heart failure-a leading cause of death and hospitalization in the developed world, with associated healthcare costs in the United States exceeding US
For more information about Cardiol Therapeutics, please visit cardiolrx.com.
Cautionary statement regarding forward-looking information:
This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements, other than statements of historical fact, that address activities, events, or developments that Cardiol believes, expects, or anticipates will, may, could, or might occur in the future are "forward-looking information". Forward-looking information contained herein may include, but is not limited to statements regarding the Company's expectations with respect to the use of proceeds and the use of the available funds following completion of the Offering, Company's focus on developing anti-inflammatory and anti-fibrotic therapies for the treatment of heart disease, the Company's intended clinical studies and trial activities and timelines associated with such activities, including the Company's plan to complete the Phase III study in recurrent pericarditis with CardiolRx™, the Company's plan to advance the development of CRD-38, a novel subcutaneous formulation intended for the treatment of inflammatory heart disease, including heart failure, including through the initiation of the first-in-human clinical evaluation. Forward-looking information contained herein reflects the current expectations or beliefs of Cardiol based on information currently available to it and is based on certain assumptions and is also subject to a variety of known and unknown risks and uncertainties and other factors that could cause the actual events or results to differ materially from any future results, performance or achievements expressed or implied by the forward looking information, and are not (and should not be considered to be) guarantees of future performance. These risks and uncertainties and other factors include the risks and uncertainties referred to in the Company's Annual Information Form filed with the Canadian securities administrators, available on SEDAR+ at sedarplus.ca, as well as the risks and uncertainties associated with product commercialization and clinical studies. These assumptions, risks, uncertainties, and other factors should be considered carefully, and investors should not place undue reliance on the forward-looking information, and such information may not be appropriate for other purposes. Any forward-looking information speaks only as of the date of this press release and, except as may be required by applicable securities laws, Cardiol disclaims any intent or obligation to update or revise such forward-looking information, whether as a result of new information, future events, or results, or otherwise. Investors are cautioned not to rely on these forward-looking statements.
For further information, please contact:
Investor.relations@cardiolrx.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/281332
FAQ
How much did Cardiol Therapeutics (CRDL) raise in the January 23, 2026 private placement?
What did each Unit issued by Cardiol (CRDL) include on January 23, 2026?
Who underwrote the Cardiol (CRDL) offering and what commission was paid?
How will Cardiol (CRDL) use the proceeds from the $14.85M financing?
Are the Units from Cardiol's (CRDL) January 2026 financing registered for sale in the United States?
