Cardiol Therapeutics Announces Warrant Exercise for Over USD $7 Million in Proceeds

Warrant exercises add over $7 million, extending Cardiol’s cash runway into the first half of 2028 and funding MAVERIC Phase III progress.

Rhea-AI Summary

Cardiol Therapeutics (CRDL) has received proceeds of over USD $7 million from the exercise of outstanding common share purchase warrants, strengthening its balance sheet and extending its cash runway into H1 2028.

The funds are expected to support operations through topline data from the pivotal Phase III MAVERIC trial of CardiolRx™ in recurrent pericarditis and to help prepare a potential New Drug Application, subject to favorable trial results and regulatory input. Of 5,712,500 warrants originally issued in October 2025, 425,000 remained unexercised as of September 15, 2026, representing additional potential gross proceeds of USD $573,750. Cardiol has exercised its Acceleration Right, causing all remaining warrants to expire at 4:00 p.m. (Eastern Time) on October 16, 2026 if not exercised.

Positive

• Warrant exercises generate over USD $7 million in proceeds
• Cash runway extended into H1 2028, reducing near-term financing pressure
• Funding expected to cover operations through Phase III MAVERIC topline data readout
• Up to an additional USD $573,750 available from remaining 425,000 warrants

Negative

• Exercise and potential exercise of up to 5,712,500 warrants increase share count and dilute existing shareholders
• Acceleration causes remaining warrants to expire on October 16, 2026, limiting flexibility for warrant holders

Market Context

Cardiol's Phase II recurrent-pericarditis publication was followed by an 8.49% price increase on Jul...

Analysis

Cardiol's Phase II recurrent-pericarditis publication was followed by an 8.49% price increase on July 14; that study supplied the clinical rationale for the Phase III program this financing supports.

Key Figures

Warrant exercise proceeds: Over USD $7 million Cash runway: H1 2028 Originally issued warrants: 5,712,500 Warrants +3 more

Warrant exercise proceeds

Over USD $7 million

Proceeds received from exercise of outstanding warrants

Cash runway

H1 2028

Expected runway after warrant exercise proceeds

Originally issued warrants

5,712,500 Warrants

Warrants issued in October 2025 private placements

Unexercised warrants

425,000 Warrants

Remaining unexercised as of market close on September 15, 2026

Additional potential proceeds

USD $573,750

Gross proceeds from remaining unexercised warrants

Early expiry date

October 16, 2026

Deadline for exercising remaining warrants

Historical Context

1 past event · Latest: Aug 12

1 event

1. Aug 12

   Interim results

   24h Move

   +0.0%

   Reported prior warrant exercises and cash supporting operations and planned milestones into Q4 2027

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

warrants, acceleration right, phase iii, new drug application, +1 more

5 terms

warrants financial

"received proceeds of over USD $7 million from the exercise of outstanding common share purchase warrants"

Warrants are special documents that give you the right to buy a company's stock at a set price before a certain date. They are often used as a way for companies to attract investors or raise money, and their value can increase if the company's stock price goes up.

View in glossary

acceleration right financial

"it is entitled to exercise its Acceleration Right"

A contractual right that lets a party demand immediate fulfillment of an obligation when a triggering event occurs, such as a loan default, bankruptcy, or a change of control. It can speed up loan repayment or accelerate stock option vesting, so for investors it changes when cash or ownership becomes due—like slamming the accelerator to make a future payment or ownership transfer happen right away rather than later.

phase iii medical

"ahead of pivotal Phase III MAVERIC trial data readout"

A Phase III trial is the late-stage clinical study that tests whether a medical treatment works and is safe in a large group of patients, often comparing it to standard care. Think of it as a final dress rehearsal or full-scale road test before regulators decide on approval; positive or negative results strongly influence a drug maker’s chance to sell the treatment, future revenue, and investment risk.

new drug application regulatory

"regulatory preparations for a potential New Drug Application"

A new drug application is a formal request submitted to government regulators seeking approval to market a new medicine. It is like a detailed proposal that shows the drug has been tested for safety and effectiveness. For investors, receiving approval signals that the drug may soon become available for sale, potentially leading to revenue growth and impacting the company's value.

orphan drug designation regulatory

"The U.S. FDA has granted Orphan Drug Designation to CardiolRx™"

Orphan drug designation is a special status given to medicines developed to treat rare diseases affecting only a small number of people. This status often provides benefits like faster approval processes and financial incentives, making it more attractive for companies to develop these drugs. For investors, it signals potential for exclusive market rights and reduced competition, which can impact the drug’s profitability.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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• Proceeds strengthen balance sheet ahead of pivotal Phase III MAVERIC trial data readout in recurrent pericarditis and extends cash runway into H1 2028.

TORONTO, Sept. 16, 2026 /PRNewswire/ -- Cardiol Therapeutics Inc. (NASDAQ: CRDL) (TSX: CRDL) ("Cardiol" or the "Company"), a late-stage life sciences company advancing anti-inflammatory and anti-fibrotic therapies for heart disease, is pleased to announce it has received proceeds of over USD $7 million from the exercise of outstanding common share purchase warrants. The capital raised will extend Cardiol's cash runway into H1 2028, fund operations through topline data readout from the pivotal Phase III MAVERIC trial of CardiolRx^™ in recurrent pericarditis, and provide the Company with additional flexibility and working capital as it moves beyond that significant milestone.

"These warrant exercises reflect our shareholders' confidence in Cardiol's clinical progress, strategic direction, and long-term potential as we approach a potentially transformative milestone for the Company," said David Elsley, President and Chief Executive Officer of Cardiol Therapeutics. "We are grateful for their continued support, which further strengthens our financial position and strategic flexibility."

"Our pivotal Phase III MAVERIC trial builds on positive Phase II results demonstrating marked reductions in pain, inflammation, and recurrence, and represents an important step toward delivering a differentiated treatment for patients living with recurrent pericarditis. The proceeds from the exercise of these warrants will support regulatory preparations for a potential New Drug Application, subject to favorable MAVERIC results and regulatory input, as well as the advancement of our broader pipeline of novel treatments for inflammatory heart disease, including heart failure."

Pursuant to the terms of the common share purchase warrants issued in private placement of units on October 17, 2025, and October 20, 2025 (the "Warrants"), the Company confirms that, as of market close on September 15, 2026, it is entitled to exercise its Acceleration Right. Of the 5,712,500 Warrants originally issued, 425,000 remained unexercised at that date, representing additional potential gross proceeds of USD $573,750.

This news release constitutes notice of acceleration (the "Acceleration Notice") to Warrant holders of the exercise of the Acceleration Right. Accordingly, the Warrants will expire at 4:00 p.m. (Eastern Time) on October 16, 2026, being the 30th day following delivery of the Acceleration Notice (the "Early Expiry Date"). Any Warrants remaining unexercised after the Early Expiry Date will be automatically cancelled for no consideration.

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 innate immune system response 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 also studied 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$30 billion per year.

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 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; the extension of the Company's cash runway into H1 2028; the Company's intended use of proceeds from the exercise of the Warrants; the exercise of the outstanding Warrants; and the cancellation of the unexercised Warrants following the Early Expiry Date. 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 and U.S. Securities and Exchange Commission on March 31, 2026, available on SEDAR+ at sedarplus.ca and EDGAR at sec.gov, 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.

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SOURCE Cardiol Therapeutics Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How will Cardiol Therapeutics use the proceeds from the warrant exercises?

The company states that the proceeds will extend its cash runway into H1 2028, fund operations through the topline data readout from the pivotal Phase III MAVERIC trial of CardiolRx™ in recurrent pericarditis, support regulatory preparations for a potential New Drug Application (subject to favorable results and regulatory input), and provide additional flexibility and working capital for advancing its broader pipeline in inflammatory heart disease.

What is Cardiol Therapeutics doing with its Acceleration Right on the warrants?

Cardiol confirms that, as of market close on September 15, 2026, it is entitled to exercise its Acceleration Right on the common share purchase warrants issued in the October 17 and 20, 2025 private placements. This news release serves as the Acceleration Notice, and as a result, all remaining warrants will expire at 4:00 p.m. (Eastern Time) on October 16, 2026 if not exercised, after which any unexercised warrants will be cancelled for no consideration.

How many warrants remain outstanding and what additional proceeds could they generate?

Of the 5,712,500 common share purchase warrants originally issued in the October 2025 private placement units, 425,000 remained unexercised as of September 15, 2026. These remaining warrants represent additional potential gross proceeds of USD $573,750 if fully exercised before the early expiry date.