Cyclo Therapeutics Announces Early Exercise of Warrants by Board Members, Management and a Significant Shareholder Resulting in Cash Proceeds of $2.4 Million
23 Outubro 2023 - 9:05AM
Business Wire
Issues New Warrants to this Investment Group
for Possible Additional Funding of Up to $3.47 Million (if
exercised)
Cyclo Therapeutics, Inc. (Nasdaq: CYTH) (“Cyclo Therapeutics” or
the “Company”), a clinical stage biotechnology company dedicated to
developing life-changing medicines through science and innovation
for patients and families living with diseases, today announced
that it had entered into a securities purchase agreement with
certain accredited investors (the “Investors”) to raise $2,359,584
in a private offering (the “Offering”). The Investors owned vested
warrants to purchase an aggregate of 3,323,358 shares of the
Company’s common stock at an exercise price of $0.71 per share (the
“Original Warrants”), which they purchased in private offerings in
April and May 2023. In the Offering, the Investors exercised their
Original Warrants in full, in consideration of the receipt of new
warrants (“New Warrants”) with an exercise price equal to $0.95 per
share, to purchase 110% of the number of shares of the Company’s
common stock covered under the Original Warrants. The New Warrants
will be exercisable for cash only and have a term of four years
from the issuance date. The Investors include Rafael Holdings,
Inc., a significant shareholder of the Company, several directors
of the Company, Company management, and their affiliates.
N. Scott Fine, CEO of Cyclo Therapeutics, commented, “We
continue to navigate through difficult market conditions with the
best interest of our shareholders in the near and long term as a
priority. We are incredibly grateful for the continued support and
commitment to the future of Cyclo Therapeutics, and importantly the
Niemann-Pick Disease Type C (‘NPC’) community, from Rafael Holding
and other longtime shareholders as well as members of our
management team and Board of Directors. The exercise of these
warrants further extends our cash runway and provides us and our
shareholders the confidence that we have the necessary resources to
continue our mission and our work on continuing to advance our
clinical trials of Trappsol® Cyclo™, with the goal of providing
much-needed hope for a beloved community in desperate need for a
therapeutic solution.”
William Conkling, Chief Executive Officer of Rafael, added, “As
part of our ongoing support for development of Trappsol® Cyclo™,
and the NPC community we have determined to exercise our warrants
to support the Phase III study of Trappsol® Cyclo™. We believe the
significant clinical progress and demonstrated operational
execution by the Cyclo team has the potential to translate into
significant value creation.”
The Company intends on using the net proceeds from this Offering
for general working capital purposes. In the aggregate, the Company
issued to the Investors New Warrants to purchase a total of
3,655,694 shares of common stock in exchange for receipt of cash
consideration of $2,359,584 from the exercise of the Original
Warrants by the Investors.
The Offering was conducted pursuant to the exemption from
registration provided by Section 4(a)(2) of the Securities Act of
1933, as amended (“Securities Act”). Each Investor represented in
writing that he, she, or it is an accredited investor and acquired
the securities for his, her or its own account for investment
purposes and any subsequent transfer or sales of these securities
will be in accordance with the Securities Act or exempt from
registration under the Securities Act. The New Warrants and the
shares of the Company’s common stock issuable upon exercise of the
New Warrants will be “restricted securities” under Rule 144 of the
Securities Act, and certificates representing the foregoing will
bear a Rule 144 restrictive legend.
About Cyclo Therapeutics
Cyclo Therapeutics, Inc. is a clinical-stage biotechnology
company dedicated to developing life-changing medicines through
science and innovation for patients and families living with
disease. The Company’s Trappsol® Cyclo™, an orphan drug designated
product in the United States and Europe, is the subject of four
formal clinical trials for Niemann-Pick Disease Type C, a rare and
fatal genetic disease, (www.ClinicalTrials.gov NCT02939547,
NCT02912793, NCT03893071 and NCT04860960). The Company is
conducting a Phase 2b clinical trial using Trappsol® Cyclo™
intravenously in early Alzheimer’s disease (NCT05607615) based on
encouraging data from an Expanded Access program for Alzheimer’s
disease (NCT03624842). Additional indications for the active
ingredient in Trappsol® Cyclo™ are in development. For additional
information, visit the Company’s website:
www.cyclotherapeutics.com.
Forward-Looking Statements
This press release contains forward-looking statements for the
purposes of the safe harbor provisions under The Private Securities
Litigation Reform Act of 1995 and other federal securities laws.
These statements are often identified by the use of words such as
“anticipate,” “believe,” “can,” “continue,” “could,” “estimate,”
“expect,” “intend,” “likely,” “may,” “might,” “objective,”
“ongoing,” “plan,” “potential,” “predict,” “project,” “should,” “to
be,” “will,” “would,” “target,” potential,” “probable,”
“opportunity,” “future,” “promising,” “likely” or the negative or
plural of these words, or similar expressions or variations,
although not all forward-looking statements contain these words. We
cannot assure you that the events and circumstances reflected in
the forward-looking statements will be achieved or occur and actual
results could differ materially from those expressed or implied by
these forward-looking statements. Factors that could cause or
contribute to such differences include, but are not limited to,
those identified herein, and those discussed in the section titled
“Risk Factors” set forth in Cyclo Therapeutics’ Annual Report on
Form 10-K for the year ended December 31, 2022, Cyclo’s Quarterly
Report on Form 10-Q for the quarter ended March 31, 2023, and
Cyclo’s Quarterly Report on Form 10-Q for the quarter ended June
30, 2023, each of which is on file with the Securities and Exchange
Commission (“SEC”). Among other things, these risks include that
there can be no guarantee that the Investors will exercise the New
Warrants in full and that the Company will receive any proceeds
from the exercise of the New Warrants.
These risks are not exhaustive. New risk factors emerge from
time to time, and it is not possible for our respective management
teams to predict all risk factors, nor can we assess the impact of
all factors on our respective businesses or the extent to which any
factor, or combination of factors, may cause actual results to
differ materially from those contained in any forward-looking
statements. In addition, statements that “we believe” and similar
statements reflect our beliefs and opinions on the relevant
subject. These statements are based upon information available to
us as of the date hereof and while we believe such information
forms a reasonable basis for such statements, such information may
be limited or incomplete, and our statements should not be read to
indicate that we have conducted an exhaustive inquiry into, or
review of, all potentially available relevant information. These
statements are inherently uncertain, and investors are cautioned
not to unduly rely upon these statements. Except as required by
law, we undertake no obligation to update any forward-looking
statements to reflect events or circumstances.
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version on businesswire.com: https://www.businesswire.com/news/home/20231023684662/en/
Investor Contact:
JTC Team, LLC Jenene Thomas (833) 475-8247 CYTH@jtcir.com
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