aibioCingulate raises $5 million net through $5,480,000 unsecured promissory note
Tickers CING
The note carries 9% annual interest and matures in 18 months. Cingulate says the money extends its cash runway into the fourth quarter of 2025.
Key facts
- Company
- Cingulate Inc. (NASDAQ: CING)
- News type
- Debt Financing
- Primary source
- Cingulate Inc. 8-K (2024-12-23)
Cingulate Inc. (Nasdaq: CING) said on December 23, 2024 that it completed a financing with an accredited investor that gave it net proceeds of $5 million.
The deal is a non-convertible, unsecured promissory note with a principal amount of $5,480,000. Non-convertible means the debt cannot be turned into shares. Unsecured means it is not backed by specific company assets. The note accrues interest at 9% per annum and matures 18 months after it was issued.
The Kansas City, Kansas company said it intends to use the net proceeds for working capital and other general corporate purposes. Based on planned spending, Cingulate said the added capital funds its clinical, manufacturing and regulatory work and operating costs into the fourth quarter of 2025.
Cingulate is targeting mid-2025 to file a New Drug Application, the formal request for FDA approval, for CTx-1301.
The note was sold in a private placement under Section 4(a)(2) of the Securities Act of 1933 and/or Regulation D, and has not been registered with the SEC.