Cyclo Therapeutics Announces Closing of $1.3 Million Private Placement Priced At-The-Market Under Nasdaq Rules

Rhea-AI Summary

Cyclo Therapeutics (Nasdaq: CYTH) announced the closing of a private placement of its securities, raising approximately $1.3 million from accredited investors, including directors and management. The company sold 1,562,883 shares of common stock at a price of $0.84 each, accompanied by warrants for an equal number of shares with a $0.71 exercise price, valid for seven years. The funds will be directed towards working capital and general corporate purposes, supporting its Trappsol® Cyclo™ development programs for rare diseases such as Niemann-Pick Disease Type C. The private placement was conducted under Regulation D and relevant exemptions from the Securities Act of 1933, meaning that the securities cannot be sold in the U.S. without effective registration or applicable exemptions.

Positive

• Successfully closed a private placement raising approximately $1.3 million.
• Involvement of accredited investors, including directors and management, indicates strong confidence in the company.
• Funding will support development programs for the Trappsol® Cyclo™ product.

Negative

• The need for a private placement may indicate financial strain or lack of sufficient capital for operations.

GAINESVILLE, Fla.--(BUSINESS WIRE)-- 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 has closed a private placement of its securities priced at-the-market under Nasdaq rules, with a group of accredited investors that included several directors of the Company and members of management. Investors in the private placement purchased 1,562,883 shares of common and were issued warrants to purchase 1,562,883 shares of common. The purchase price for one share of common stock and a warrant to purchase one share of common stock was $0.84. The warrants have an exercise price of $0.71 and have a term of seven years. The gross proceeds of the private placement were approximately $1.3 million.

Cyclo Therapeutics intends to use the net proceeds from the financing for working capital and general corporate purposes, including in support of its Trappsol^® Cyclo™ development programs.

The securities described above were offered by Cyclo Therapeutics in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the “Act”) and/or Regulation D promulgated thereunder, and such securities have not been registered under the Act or applicable state securities laws. Accordingly, such securities may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Act and such applicable state securities laws. The securities were issued by the Company directly to investors with whom the Company had a pre-existing relationship, without the services of a placement agent or other intermediary.

This press 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 state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

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.

Safe Harbor Statement

This press release contains “forward-looking statements” about the company’s current expectations about future results, performance, prospects and opportunities, including, without limitation, statements regarding the satisfaction of closing conditions relating to the offering and the anticipated use of proceeds from the offering. Statements that are not historical facts, such as “anticipates,” “believes” and “expects” or similar expressions, are forward-looking statements. These statements are subject to a number of risks, uncertainties and other factors that could cause actual results in future periods to differ materially from what is expressed in, or implied by, these statements. The factors which may influence the company’s future performance include the company’s ability to obtain additional capital to expand operations as planned, success in achieving regulatory approval for clinical protocols, enrollment of adequate numbers of patients in clinical trials, unforeseen difficulties in showing efficacy of the company’s biopharmaceutical products, success in attracting additional customers and profitable contracts, and regulatory risks associated with producing pharmaceutical grade and food products. These and other risk factors are described from time to time in the company’s filings with the Securities and Exchange Commission, including, but not limited to, the company’s reports on Forms 10-K and 10-Q. Unless required by law, the company assumes no obligation to update or revise any forward-looking statements as a result of new information or future events.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230421005104/en/

JTC Team, LLC

Jenene Thomas

(833) 475-8247

CYTH@jtcir.com

Source: Cyclo Therapeutics, Inc.

FAQ

What did Cyclo Therapeutics announce on April 21, 2023?

Cyclo Therapeutics announced the closing of a private placement raising approximately $1.3 million.

How many shares were issued in the private placement by Cyclo Therapeutics?

1,562,883 shares of common stock were issued in the private placement.

What is the exercise price of the warrants issued by Cyclo Therapeutics?

The warrants have an exercise price of $0.71.

What will Cyclo Therapeutics use the proceeds from the private placement for?

The proceeds will be used for working capital and general corporate purposes, including support for the Trappsol® Cyclo™ development programs.

Is the private placement by Cyclo Therapeutics registered?

No, the securities offered in the private placement have not been registered under the Securities Act or applicable state laws.