Cingulate Closed $7.5M Public Stock Offering, Attempts to Raise Funds for ADHD Medication

Cingulate Inc. has closed its goal of a $7.5 million public stock offering opened on Friday, net proceeds would fund the company's ADHD medication. Photo credit: Google Maps

Posted February 7, 2024

Cingulate Inc. announced it has closed its $7.5 million public stock offering. The Kansas City-based pharmaceutical startup hoped to use the offering as a way to raise capital for its lead drug candidate.

Last week Cingulate (Nasdaq: CING) announced the pricing of its public offering of an aggregate of 3.75 million shares of its common stock at $2 a share. Series A warrants to purchase up to 3.75 million shares of common stock and Series B warrants to purchase up to 1.875 million shares of common stock, at a public offering price of $2 per share, according to a release.

Cingulate closed its offering on Feb.6. Cingulate’s share price was trading around $1.12 on Wednesday at 10:00 a.m. 

Net proceeds accumulated from the offering are going toward continued research and development and commercialization of CTx-1301, an attention deficit hyperactivity disorder (ADHD) drug offering for adults.

The company received two Nasdaq delisting warnings late last year. The first warning notice the company received was on Nov. 14, due to the company trading stock below the $1.00 minimum bid price. Cingulate then proceeded to conduct a reverse stock split.

On Dec. 28, Cingulate received another delisting notice following three members of Cingulate’s board of directors resigned on Dec. 12 and Dec. 13, no longer complying with Nasdaq’s listing qualifications.

CTx-1301 is a precision time-released technology that would allow for a once-daily dose as opposed to other multi-dose ADHD medication.