PONTE VEDRA, Fla. - Cadrenal Therapeutics, Inc. (NASDAQ: CVKD), a biopharmaceutical company engaged in developing a new anticoagulant medication, announced on Thursday that it has garnered approximately $5.1 million in funding. The capital was raised through the sale of 391,243 shares of common stock at an average price of $13.15 per share via an at-the-market (ATM) equity offering.
Following the transaction, the company reported having 1,496,771 shares of common stock outstanding and a cash balance of about $7.4 million as of October 23, 2024. The CEO of Cadrenal, Quang X. Pham, stated that the proceeds would bolster their working capital as they advance the development of tecarfarin, prepare for a pivotal Phase 3 trial, and engage in partnership discussions.
The ATM sales were conducted under a shelf registration statement approved by the U.S. Securities and Exchange Commission on March 20, 2024, with H.C. Wainwright & Co. serving as the exclusive sales agent.
Tecarfarin, Cadrenal's flagship product, is a vitamin K antagonist (VKA) aimed at providing safer and more effective chronic anticoagulation for patients with specific cardiovascular conditions or implanted cardiac devices. The drug has garnered orphan drug designation for advanced heart failure patients with left ventricular assist devices and for end-stage kidney disease patients with atrial fibrillation, alongside fast-track status.
The company is actively pursuing clinical and commercial partnerships while preparing for further clinical trials, including studies involving patients with mechanical heart valves who face anticoagulation challenges.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities, and there shall be no sale of these securities in any jurisdiction where such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
The information presented in this article is based on a press release statement from Cadrenal Therapeutics, Inc.
In other recent news, Cadrenal Therapeutics regained compliance with Nasdaq's minimum bid price requirement, a crucial development for the pharmaceutical company's continued access to capital markets. The Florida-based company also made strategic moves, including the implementation of a 1-for-15 reverse stock split and significant amendments to its 2022 Successor Equity Incentive Plan. These changes reflect Cadrenal's efforts to maintain its Nasdaq listing and enhance its corporate strategy.
The company is also preparing for a pivotal FDA meeting concerning the clinical trial of tecarfarin, a potential anticoagulant for patients with Left Ventricular Assist Devices. The outcome of this meeting will be instrumental in determining tecarfarin's future development and potential market entry.
Furthermore, Cadrenal's stockholders approved the appointment of WithumSmith+Brown, P.C. as the independent registered public accounting firm for the fiscal year ending December 31, 2024. In board-related developments, John Murphy and Robert Lisicki were elected as Class II directors, set to serve until the 2027 Annual Meeting of Stockholders. These recent developments highlight Cadrenal Therapeutics' ongoing activities in the pharmaceutical industry.
InvestingPro Insights
Cadrenal Therapeutics' recent capital raise comes at a crucial time for the company, as reflected in the latest InvestingPro data. With a market capitalization of $15.14 million, CVKD is a small-cap player in the biopharmaceutical space, focusing on its anticoagulant medication, tecarfarin.
The company's financial position shows some interesting contrasts. An InvestingPro Tip indicates that Cadrenal "holds more cash than debt on its balance sheet," which aligns with the company's reported cash balance of $7.4 million after the recent ATM offering. This cash position is particularly important given another InvestingPro Tip that suggests the company is "quickly burning through cash," underscoring the significance of the recent $5.1 million capital raise.
Despite the cash burn, Cadrenal has shown strong market performance. InvestingPro data reveals impressive price total returns of 107.91% over the past three months and 120.82% over the past six months. This positive momentum may reflect investor optimism about tecarfarin's potential and the company's progress towards clinical trials.
However, it's important to note that Cadrenal is not yet profitable, with a negative P/E ratio of -2.43 for the last twelve months as of Q2 2024. This is consistent with the InvestingPro Tip stating that "analysts do not anticipate the company will be profitable this year." As Cadrenal prepares for its pivotal Phase 3 trial and seeks partnerships, investors will be closely watching the company's ability to manage its cash and progress towards commercialization.
For readers interested in a deeper dive into Cadrenal's financials and prospects, InvestingPro offers 12 additional tips that could provide valuable insights for investment decisions.
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