Cyclerion Therapeutics Announces $18 Million Private Placement
June 04 2021 - 8:00AM
Cyclerion Therapeutics, Inc. (Nasdaq: CYCN), a clinical-stage
biopharmaceutical company on a mission to develop treatments that
restore cognitive function, today announced a direct private sale
of approximately $18 million of Cyclerion shares of common stock to
EcoR1 Capital, LLC, Slate Path Capital LP, MFN Partners, LP, Invus,
Peter Hecht, Ph.D., Lincoln Park Capital Fund, LLC and Polaris
Partners.
“We are pleased with the ongoing support of this
highly respected group of investors. This capital, coupled with the
praliciguat out-license announced today, reinforces our strategic
focus in CNS and will accelerate the advancement of clinical
studies for CY6463 and the further development of our next
generation molecule, CY3018. CY6463 is currently in clinical
development in multiple neurological diseases associated with
cognitive impairment, an area of tremendous unmet need where we
believe CY6463 has the potential to offer meaningful clinical
benefit,” said Peter Hecht, Ph.D. Chief Executive Officer of
Cyclerion.
In the private placement, signed on June 3,
2021, the Company agreed to sell 5,735,988 shares of common stock
at a price of $3.12 per share, or $3.28 per share with respect to
Peter Hecht, Ph.D. in compliance with Nasdaq listing rules. The
securities to be sold in the private placement have not been
registered under the Securities Act of 1933, as amended (the
“Securities Act”), or any state or other applicable jurisdiction’s
securities laws, and may not be offered or sold in the United
States absent registration or an applicable exemption from the
registration requirements of the Securities Act and applicable
state or other jurisdictions’ securities laws. The Company has
agreed to file a registration statement with the U.S. Securities
and Exchange Commission registering the resale of the shares of
common stock issued in the private placement within 10 business
days after the date of the securities purchase agreement for the
private placement.About Cyclerion
Therapeutics
Cyclerion Therapeutics is a clinical-stage
biopharmaceutical company on a mission to develop treatments that
restore cognitive function. Cyclerion is advancing novel,
first-in-class, CNS-penetrant, sGC stimulators that modulate a key
node in a fundamental CNS signaling pathway. The multidimensional
pharmacology elicited by the stimulation of sGC has the potential
to impact a broad range of CNS diseases. The most advanced
compound, CY6463, has shown rapid improvement in biomarkers
associated with cognitive function and is currently in clinical
development for Alzheimer's Disease with Vascular pathology (ADv),
Mitochondrial Encephalomyopathy, Lactic Acidosis and Stroke-like
episodes (MELAS), and Cognitive Impairment Associated with
Schizophrenia (CIAS). Cyclerion is also advancing CY3018, a
next-generation sGC stimulator.
For more information about Cyclerion, please
visit https://www.cyclerion.com/ and follow us on Twitter
(@Cyclerion) and LinkedIn (www.linkedin.com/company/cyclerion).
Forward Looking StatementThis press release
contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. Our
forward-looking statements are based on current beliefs and
expectations of our management team that involve risks, potential
changes in circumstances, assumptions, and uncertainties. We may,
in some cases use terms such as “predicts,” “believes,”
“potential,” “continue,” “anticipates,” “estimates,” “expects,”
“plans,” “intends,” “may,” “could,” “might,” “likely,” “will,”
“should” or other words that convey uncertainty of the future
events or outcomes to identify these forward-looking statements.
Each forward-looking statement is subject to risks and
uncertainties that could cause actual results to differ materially
from those expressed or implied in such statement. Applicable risks
and uncertainties include the risks listed under the heading “Risk
Factors” and elsewhere in our 2020 Form 10-K filed on February
25, 2021, and our subsequent SEC filings including the Form 10-Q
filed on April 30, 2021, including without limitation that we will
need to raise additional funding to further advance our product
candidates, including CY6463 and CY3018, which funding may not be
available on acceptable terms or at all, and that there can be no
assurances that we will demonstrate safety and efficacy of such
product candidates under regulatory requirements or for various
other reasons ever commercialize any such product candidates.
Investors are cautioned not to place undue reliance on these
forward-looking statements. These forward-looking statements
(except as otherwise noted) speak only as of the date of this press
release, and Cyclerion undertakes no obligation to update these
forward-looking statements, except as required by law.
InvestorsCarlo Tanzi, Ph.D.Kendall Investor
Relationsctanzi@kendallir.com
MediaAmanda SellersVerge Scientific
Communicationsasellers@vergescientific.com
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