Biopharmaceutical Firm Cingulate Prices US$25 Million IPO
Clinical-stage biopharmaceutical company Cingulate Inc. (Nasdaq: CING) began trading on the Nasdaq Capital Market today. The firm’s initial public offering is looking to raise US$25.0 million and is expected to close on December 10, 2021.
The offering consists of 4.17 million common shares selling at US$6.00 per share. Each common share is sold with a purchase warrant exercisable for one common share at the same IPO price.
The shares and warrants will be trading on the Nasdaq big board under symbols “CING” and “CINGW”, respectively.
The company intends to use the proceeds for continued research and development, pre-commercialization planning, or proof of concept study for its drug portfolio. The proceeds are also planned to be used on satisfying outstanding accrued payroll expenses to employees and executive officers, as well as working capital, capital expenditures, and general corporate purposes.
The company granted a 45-day over-allotment option to purchase additional 624,999 common shares and tie-in warrants at the same IPO price. Aegis Capital Corp. and Laidlaw & Company (UK) are acting as the lead bookrunners for the said offering.
The Kansas City-headquartered company is known for its proprietary Precision Timed Release drug delivery technology designed to address suboptimal outcomes from the hassles of daily dosing regimens. While the initial focus is its application on treating Attention Deficit/Hyperactivity Disorder, the firm is evaluating additional therapeutic areas where the technology can be employed.
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