Cardiol Therapeutics Announces Closing of US$13.5 Million Public Offering of Common Shares

Rhea-AI Summary

Cardiol Therapeutics (NASDAQ: CRDL) (TSX: CRDL) has successfully closed its public offering of 8,437,500 Class A common shares at US$1.60 per share, raising gross proceeds of US$13.5 million. The company plans to use the net proceeds to support the clinical development of CardiolRx for treating recurrent pericarditis, as well as for general and administrative expenses, working capital, and other expenses.

Canaccord Genuity acted as the sole bookrunner for the offering. The offering was made pursuant to a U.S. registration statement on Form F-10 and the company's existing Canadian short form base shelf prospectus. A final prospectus supplement was filed with securities commissions in Canada (except Quebec) and the SEC in the United States.

Positive

• Successful closing of US$13.5 million public offering
• Funds to support clinical development of CardiolRx for recurrent pericarditis
• Offering made through established regulatory channels in US and Canada

Negative

• Potential dilution of existing shareholders due to new share issuance

Insights

Financial Analyst

The successful closing of Cardiol Therapeutics' $13.5 million public offering is a significant financial development for the company. By issuing 8,437,500 common shares at $1.60 per share, Cardiol has substantially bolstered its cash position. This capital infusion is important for advancing the clinical development of CardiolRx, particularly for treating recurrent pericarditis.

The pricing of $1.60 per share represents a 25% discount to the previous closing price, which is within the typical range for biotech offerings but may lead to some short-term share price pressure. However, the increased liquidity and extended cash runway should outweigh this concern for long-term investors.

With Canaccord Genuity as the sole bookrunner, the successful completion of this offering demonstrates investor confidence in Cardiol's pipeline and strategy. The additional capital strengthens the company's financial position, potentially extending its operational runway and reducing the need for near-term dilutive financing.

Medical Research Analyst

This financial transaction is pivotal for Cardiol Therapeutics' clinical development program. The influx of capital will primarily support the advancement of CardiolRx for recurrent pericarditis, a condition with significant unmet medical need. This focus on a specific indication suggests a strategic approach to drug development, potentially accelerating the path to market.

Recurrent pericarditis is a challenging inflammatory heart condition and new treatment options are urgently needed. CardiolRx, as an anti-inflammatory and anti-fibrotic therapy, could represent a significant advancement in this field if clinical trials prove successful. The additional funding increases the likelihood of completing comprehensive clinical studies, which is important for regulatory approval and eventual commercialization.

Investors should closely monitor upcoming clinical milestones and data readouts, as these will be critical in determining the long-term value proposition of Cardiol Therapeutics in the cardiovascular therapeutics market.

Oakville, Ontario--(Newsfile Corp. - October 10, 2024) - Cardiol Therapeutics Inc. (NASDAQ: CRDL) (TSX: CRDL) ("Cardiol" or the "Company"), a clinical-stage life sciences company focused on the research and clinical development of anti-inflammatory and anti-fibrotic therapies for the treatment of heart disease, confirmed today that it has successfully closed its previously announced public offering (the "Offering") of 8,437,500 Class A common shares of the Company (the "Common Shares") at a price to the public of US$1.60 per Common Share for gross proceeds of US$13.5 million, before deducting the underwriting discounts and commissions and estimated expenses incurred in connection with the Offering.

As previously stated, the Company intends to use the net proceeds from the Offering to support the clinical development of CardiolRx for the treatment of recurrent pericarditis and for general and administrative expenses, working capital and other expenses.

Canaccord Genuity acted as the sole bookrunner in connection with the Offering.

The Offering was made pursuant to a U.S. registration statement on Form F-10, declared effective by the U.S. Securities and Exchange Commissions (the "SEC") on July 16, 2024 (the "Registration Statement"), and the Company's existing Canadian short form base shelf prospectus (the "Base Prospectus") dated July 12, 2024. A preliminary prospectus supplement relating to the Offering was filed with the securities commission in all of the provinces and territories of Canada, except Quebec, and with the SEC in the United States, and a final prospectus supplement relating to the Offering (the "Supplement") was filed with the securities commissions in all of the provinces and territories of Canada, except Quebec, and with the SEC in the United States. The Supplement and accompanying Base Prospectus contain important detailed information about the Offering.

The Supplement and accompanying Base Prospectus can be found on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov. Copies of the Supplement and accompanying Base Prospectus may also be obtained from Canaccord Genuity LLC, 1 Post Office Square, Suite 3000, Boston, Massachusetts 02109, Attn: Syndicate Department, or by email at prospectus@cgf.com.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such province, state or jurisdiction.

About Cardiol Therapeutics

Cardiol Therapeutics Inc. is a clinical-stage life sciences company focused on the research and clinical development of anti-inflammatory and anti-fibrotic therapies for the treatment of heart disease.

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 anticipated use of proceeds from the Offering. 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 Report on Form 20-F filed with the U.S. Securities and Exchange Commission and Canadian securities regulators on April 1, 2024, 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 and are encouraged to read the Supplement, the accompanying Base Prospectus and the documents incorporated by reference therein.

For further information, please contact:
Trevor Burns, Investor Relations +1-289-910-0855
trevor.burns@cardiolrx.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/226257

FAQ

How much did Cardiol Therapeutics (CRDL) raise in its recent public offering?

Cardiol Therapeutics (CRDL) raised gross proceeds of US$13.5 million in its recent public offering.

What is the intended use of funds from Cardiol Therapeutics' (CRDL) public offering?

Cardiol Therapeutics (CRDL) intends to use the net proceeds to support the clinical development of CardiolRx for treating recurrent pericarditis, as well as for general and administrative expenses, working capital, and other expenses.

At what price were Cardiol Therapeutics (CRDL) shares offered in the public offering?

Cardiol Therapeutics (CRDL) offered its Class A common shares at a price of US$1.60 per share in the public offering.

Who acted as the bookrunner for Cardiol Therapeutics' (CRDL) public offering?

Canaccord Genuity acted as the sole bookrunner for Cardiol Therapeutics' (CRDL) public offering.