KANSAS CITY - Cingulate Inc. (NASDAQ: CING), a biopharmaceutical company focusing on advanced drug delivery technologies, has announced the pricing of its public offering. The offering includes 3,750,000 shares of common stock, or equivalents, and accompanying warrants. The company has set the public offering price at $2.00 per share, along with Series A and Series B warrants, also priced at $2.00 per share.
Series A warrants, exercisable immediately and expiring five years post-issuance, along with Series B warrants, immediately exercisable and expiring two years after issuance, are part of the offering. The closing of the offering is anticipated on or around February 6, 2024, subject to standard closing conditions.
H.C. Wainwright & Co. is serving as the sole placement agent for the offering. Cingulate expects to raise gross proceeds of approximately $7.5 million before accounting for the placement agent’s fees and other expenses related to the offering.
The company plans to allocate the net proceeds to further research and development of its lead candidate CTx-1301, as well as for general corporate purposes, which include working capital, capital expenditures, and continued investment in research and development activities.
Cingulate Inc. specializes in utilizing its proprietary Precision Timed Release™ (PTR™) drug delivery platform to develop pharmaceutical products aimed at improving patient outcomes in conditions requiring burdensome daily dosing regimens. The company is headquartered in Kansas City and is exploring the use of PTR technology in other therapeutic areas beyond its current focus on ADHD, including potential treatments for anxiety disorders.
This news is based on a press release statement from Cingulate Inc.
InvestingPro Insights
As Cingulate Inc. (NASDAQ: CING) embarks on its latest public offering, a glance at the InvestingPro real-time data reveals several key financial metrics that prospective investors may find pertinent. The company's market capitalization stands at $4.87 million, reflecting the size of the company in the current market. Despite the challenges, Cingulate's stock price remains at $3.10, with a notable average daily volume over the past three months of $1.58 million, signaling a degree of liquidity in its shares.
InvestingPro Tips suggest caution, highlighting that Cingulate is quickly burning through cash and pointing out that the stock has experienced significant volatility, with a substantial drop in price over the last week. These insights could be crucial for investors considering the current offering, especially given that analysts do not expect the company to be profitable this year. Moreover, with short-term obligations exceeding liquid assets, there is an additional layer of financial risk to consider.
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