Cyclo Therapeutics Announces Proposed Public Offering of Common Stock

Rhea-AI Summary

Cyclo Therapeutics has initiated an underwritten public offering of its common stock, with details subject to market conditions. The offering is conducted by Maxim Group LLC as the sole book-running manager and will follow an effective shelf registration statement filed with the SEC. The company aims to secure funding to support its clinical trials for Trappsol® Cyclo™, which is currently involved in four trials for Niemann-Pick Disease Type C and is exploring further applications in Alzheimer’s Disease.

Positive

• The offering aims to raise capital to support ongoing clinical trials.
• Trappsol® Cyclo™ is in multiple clinical trials, indicating active development.

Negative

• The public offering may lead to shareholder dilution if additional shares are issued.

GAINESVILLE, Fla.--(BUSINESS WIRE)-- Cyclo Therapeutics, Inc. (Nasdaq: CYTH, CYTHW) (“Cyclo Therapeutics” of 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 it has commenced an underwritten public offering of shares of its common stock. The offering is subject to market conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.

Maxim Group LLC is acting as sole book-running manager for the offering.

The public offering is being made pursuant to an effective shelf registration statement on Form S-3 (File No. 333-254496), previously filed with the U.S. Securities and Exchange Commission (SEC) on March 19, 2021 and declared effective on May 28, 2021. The securities may be offered only by means of a prospectus. A preliminary prospectus supplement and the accompanying prospectus relating to and describing the terms of the public offering will be filed with the SEC, will form a part of the effective registration statement and will be available on the SEC’s website at www.sec.gov. When available, copies of the preliminary prospectus supplement and accompanying prospectus relating to the public offering may also be obtained by contacting Maxim Group LLC, at 300 Park Avenue, 16th Floor, New York, NY 10022, Attention: Prospectus Department, or by telephone at (212) 895-3745 or by email at syndicate@maximgrp.com.

This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction 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 suffering from 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 planning an early phase clinical trial using Trappsol® Cyclo™ intravenously in Alzheimer’s Disease based on encouraging data from an Expanded Access program for late-onset 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 proposed public 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/20211116006370/en/

JTC Team, LLC

Jenene Thomas

(833) 475-8247

CYTH@jtcir.com

Source: Cyclo Therapeutics, Inc.

FAQ

What is Cyclo Therapeutics announcing in their recent press release?

Cyclo Therapeutics has announced the commencement of an underwritten public offering of its common stock.

What is the purpose of Cyclo Therapeutics’ public offering?

The public offering aims to raise capital to support ongoing clinical trials and business development.

Who is managing the public offering for Cyclo Therapeutics?

Maxim Group LLC is acting as the sole book-running manager for the offering.

How will the proceeds from the offering be used by Cyclo Therapeutics?

The proceeds from the offering are intended to support the company’s clinical trials and further development of its product Trappsol® Cyclo™.

What risks are associated with Cyclo Therapeutics’ public offering?

Potential risks include shareholder dilution and market uncertainties affecting the offering completion.