Cingulate Shares Decrease by 43% following Public Offering

Cingulate shares experienced a significant decline of 43%, dropping to $1.90, after the company announced the pricing of its public offering. The offering consists of 3.75 million shares and warrants to buy up to an additional 3.75 million shares, all valued at $2 per share. This news comes as the stock reaches its 52-week low of $1.85, marking a substantial decrease of 91% over the past year.

The newly issued warrants will enable shareholders to purchase shares at the exercise price of $2 immediately. These warrants will remain valid for a duration of five years from the issuance date.

The completion of the offering is anticipated to take place on or around Tuesday. Cingulate expects to generate approximately $7.5 million in proceeds from this offering. These funds are intended to support ongoing research and development efforts, as well as the commercialization activities associated with their flagship candidate, CTx-1301. Additionally, the company plans to allocate a portion of these proceeds towards working capital, capital expenditures, and general corporate initiatives, including further investments in research and development endeavors.