Cyclacel Pharmaceuticals Presses Capital Raise Button

Cyclacel Pharmaceuticals Inc (NASDAQ: CYCCpriced an underwritten public offering of 1.81 million common shares at $7 per share, a discount of 11% on the last close price of $7.87 on Thursday.

  • It will raise gross proceeds of approximately $12.65 million.
  • Underwriters can purchase up to an additional 271,071 shares, and the offering will close by March 16.
  • Cyclacel intends to use the net proceeds for working capital and general corporate purposes, including research and development expenses and capital expenditures.
  • In 2021, the company will commence streamlined Phase 1/2 clinical studies, initially of oral fadraciclib and subsequently of oral CYC140, in a broad range of solid tumors and hematological malignancies.
  • The clinical development plan for these studies calls for parallel evaluation of different schedules of the two agents in multiple cohorts.
  • The studies aim to identify clinical activity which may lead to registration-enabling studies.
  • In February, the company announced proforma cash on hand of $37.7 million, which would be sufficient to fund planned operations, including research and development, through early 2023.
  • Oppenheimer is acting as the sole book-running manager for the public offering.
  • Price Action: CYCC shares are down 4.7% at $7.5 in market trading hours on the last check Friday.
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