Cingulate Inc., a pharmaceutical company based in Kansas City, KS, announced today that it has successfully raised approximately $11.7 million in capital during August and September of 2024.
The company, which trades on the Nasdaq Capital Market under the symbols NASDAQ:CING for its common stock and NASDAQ:CINGW for its warrants, detailed in a recent SEC filing that this additional funding extends its cash runway to cover clinical, manufacturing, and regulatory activities, as well as operating costs, through the second quarter of 2025.
The capital raise comes at a pivotal time for Cingulate as it prepares for a significant milestone in its product development pipeline. The company is targeting the filing of a New Drug Application (NDA) for CTx-1301, which is slated for potential FDA approval, by mid-2025. This step is critical for the company as it moves closer to potentially bringing its pharmaceutical product to market.
As of September 30, 2024, Cingulate reported having cash and cash equivalents totaling approximately $10 million. This financial update underscores the company's current position and its capacity to sustain its projected expenditures in the near term.
The announcement is based on a press release statement and provides a factual representation of the company's financial health and strategic planning.
In other recent news, Cingulate Inc. has been making significant strides in its operations and financial position. The pharmaceutical company has regained compliance with Nasdaq's minimum bid price requirement, a crucial step for its continued listing on the exchange. Additionally, Cingulate has expanded its at-the-market offering by $3.87 million, in an agreement with H.C. Wainwright & Co., enabling the issuance of additional shares worth the same amount.
Furthermore, the company's CEO, Shane Schaffer, despite being charged with one count of aggravated domestic battery, retains the full confidence and support of the company's Board of Directors. About its product development, Cingulate has secured a European patent for its lead product, CTx-1301, designed for the treatment of Attention Deficit Hyperactivity Disorder (ADHD), extending the company's market reach to up to 30 European territories, including the United Kingdom.
Cingulate's share count has also seen an increase due to recent capital-raising activities, including an At The Market Offering Agreement and a purchase agreement with Lincoln Park Capital Fund, LLC. These recent developments highlight the company's efforts to bolster its financial standing and expand its market reach.
InvestingPro Insights
Recent InvestingPro data provides additional context to Cingulate Inc.'s financial situation and market performance. Despite the company's recent capital raise, InvestingPro Tips indicate that Cingulate is "quickly burning through cash" and is "not profitable over the last twelve months." This aligns with the company's need for additional funding to extend its cash runway through Q2 2025.
The stock's market capitalization stands at $10.48 million, reflecting its current valuation. Cingulate's price-to-book ratio of 3.4 suggests that the market is valuing the company above its book value, potentially due to expectations surrounding its drug development pipeline, particularly CTx-1301.
InvestingPro Tips also highlight that the "stock generally trades with high price volatility" and has "fared poorly over the last month," with a one-month price total return of -18.75%. This volatility may be attributed to the uncertainties surrounding the company's path to profitability and the pending NDA filing.
For investors seeking a more comprehensive analysis, InvestingPro offers 15 additional tips for Cingulate Inc., providing a deeper understanding of the company's financial health and market position.
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