CNS Pharmaceuticals, Inc. (NASDAQ:CNSP), a Houston-based pharmaceutical company, has amended its sales agreement with A.G.P./Alliance Global Partners (NYSE:GLP) to increase the potential sale of its common stock from an initial $5.2 million to a total of $25 million, not including the original amount. This move, detailed in the company’s latest 8-K filing with the Securities and Exchange Commission (SEC) on Tuesday, is part of the company's efforts to enhance its capital resources.
On Monday, CNS Pharmaceuticals had already sold approximately 7.2 million shares, raising gross proceeds of about $5.19 million under the existing sales agreement. Following this amendment, the company has the capacity to sell additional shares up to the newly established limit under the same terms. As of the date of the report, CNS Pharmaceuticals has 10,075,017 shares of common stock outstanding.
The sale of shares will be conducted under the company's effective shelf registration statement on Form S-3, which was originally filed on May 17, 2024, and includes a base prospectus and a related prospectus supplement filed with the SEC on July 26, 2024, and supplemented on July 30, 2024. The total of $30.2 million in common stock that may be offered, issued, and sold is part of the $75 million in securities that the company is authorized to offer under the base prospectus..
In other recent news, CNS Pharmaceuticals has made significant strides in its operations and financial structure. The biopharmaceutical company has acquired an exclusive license for TPI 287, a drug candidate for glioblastoma multiforme (GBM), with plans to initiate a study in 2025. Concurrently, the company has entered into a sales agreement with A.G.P./Alliance Global Partners, allowing a potential stock sale of up to $5.2 million. CNS Pharmaceuticals also initiated a 1-for-50 reverse stock split to elevate the company's per-share trading price.
These developments come as CNS Pharmaceuticals faces potential NASDAQ delisting due to an equity shortfall. The company has been granted several extensions to demonstrate compliance, with the most recent extension given until August 12, 2024. Amid these financial maneuvers, CNS Pharmaceuticals continues to focus on its main drug candidate, Berubicin, which is under development for various serious brain and central nervous system cancers.
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