Cingulate Inc. (NASDAQ:CING), a pharmaceutical company specializing in preparations, announced on Monday an increase in the maximum aggregate offering price for its common stock from $11,326,658 to $15,196,658. This action, taken under the At The Market Offering Agreement with H.C. Wainwright & Co., LLC initiated on January 3, 2023, allows the company to issue additional shares worth $3,870,000.
Prior to this announcement, Cingulate Inc. had already sold shares totaling $11,323,947.19 under the agreement. The company, which is based in Kansas City, KS, also filed a prospectus supplement covering the newly available shares.
The move to expand the offering comes as part of Cingulate Inc.'s efforts to increase its capital. The company has not specified the intended use of the proceeds from the sale of the additional shares. The legal opinion regarding the issuance of these shares, provided by Lowenstein Sandler LLP, has been included as part of the filing.
This financial maneuver is a common practice for companies looking to raise funds in a flexible manner, allowing them to sell shares over a period of time at prevailing market prices. The at-the-market offering is subject to market conditions, and the timing of any sales will be determined by Cingulate Inc.
Investors are advised that this information is based on the company's recent SEC filing and should consider the current prospectus supplement when making investment decisions related to Cingulate Inc.'s common stock.
In other recent news, Cingulate Inc. has reported an increased share count following capital-raising activities, including an At The Market Offering Agreement and a purchase agreement with Lincoln Park Capital Fund, LLC.
The pharmaceutical company has also expanded its At The Market (ATM) offering agreement with H.C. Wainwright & Co., allowing for an additional $2,856,658 in common stock to be issued. These financial maneuvers are part of the company's recent developments.
Cingulate Inc. has also been granted a European patent for its lead product, CTx-1301, designed for the treatment of Attention Deficit Hyperactivity Disorder (ADHD). This patent potentially extends the company's market reach to up to 30 European territories, including the United Kingdom. Furthermore, the company has completed twelve registration batches for CTx-1301, a key requirement for submitting a New Drug Application (NDA) to the FDA.
In an effort to maintain its Nasdaq listing, Cingulate Inc. initiated a 1-for-12 reverse stock split and revised the terms of certain outstanding warrants, reducing the exercise price to potentially generate approximately $1.86 million for ongoing research and development initiatives.
However, the company's Nasdaq listing is still under scrutiny due to not meeting the minimum bid price requirement, with plans to request a hearing before the Nasdaq Hearings Panel. These are the most recent developments in Cingulate Inc.'s ongoing operations.
InvestingPro Insights
As Cingulate Inc. (NASDAQ:CING) proceeds with its strategy to raise capital through an at-the-market offering, real-time data from InvestingPro provides further context for investors. With a market cap of approximately $17.2 million, Cingulate is navigating a challenging financial landscape, as evidenced by their substantial negative gross profit of -$12.6 million and operating loss of -$18.7 million in the last twelve months as of Q2 2024. These figures underscore the company's urgent need for capital infusion to sustain its operations.
InvestingPro Tips highlight critical aspects for potential investors. Cingulate's stock has experienced significant volatility, with a notable 111.28% return over the past month, yet a staggering -94.86% decline over the past year. This volatility is a critical factor for investors to consider, especially since analysts do not expect the company to be profitable this year. Moreover, the stock's price currently trades at a high Price / Book multiple of 5.58, which could suggest the market is pricing in future growth or a potential turnaround that the company might achieve with the newly raised capital.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights. There are 14 more InvestingPro Tips available for Cingulate Inc., providing a deeper dive into the company's financial health and market performance. These insights can be found at https://www.investing.com/pro/CING, allowing investors to make more informed decisions with the latest data and expert analysis.
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