- Cingulate is offering 4,166,666 shares of its common stock and warrants.
- The offering price is US$6 per share.
- The gross proceeds from the offering are expected to be around US$25 million.
Biopharmaceutical company Cingulate Inc. is all set to start trading on Nasdaq Capital Market Wednesday. It announced the pricing of its initial public offering (IPO) on Tuesday.
The Kansas City, Missouri-headquartered company specializes in precision time release (PTR) drug delivery technology. It aims to build a portfolio of next-generation pharmaceutical products.
Cingulate is offering 4,166,666 shares of its common stock and accompanying warrants in the IPO.
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Each share is sold along with a warrant to purchase one share of common stock for US$6 apiece. Notably, the company is offering all the shares and warrants in the IPO.
Additionally, the firm is providing an over-allotment option of 45 days to underwriters to buy an additional 624,999 shares of its common stock and warrant.
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Stock listing & Proceeds
Upon completing the IPO process, the shares and warrants are scheduled to start trading on Nasdaq under the ticker symbol CING and CINGW, respectively. The expected closing date of the offering is Dec 10, 2021, subject to the satisfaction of customary closing conditions. The gross proceeds before underwriting discounts, commissions and projected offering expenses are anticipated to be around US$25 million.
Cingulate plans to use the proceeds from the IPO in its research and development activities, and pre-commercialization planning of CTx-1301. In addition, the company will invest in the research and development of CTx-1302 and the proof concept study of CTx-2103.
Retail investors can purchase the stocks after they start trading on the exchange. For the year ended on Dec 31, 2020, Cingulate reported a net loss of US$7.18 million. As of Dec 31, 2020, Cingulate’s cash and cash equivalents were US$1.19 million.
Several healthcare companies have debuted in the US stock market this year, demonstrating the industry’s strong confidence in the economy. It has been a year of IPOs despite gloom and doom on the Covid front.