Cyclo Therapeutics Inc. (NASDAQ:CYTH) watched its shares sink into the sand at Wednesday’s opening bell, after pricing its previously announced underwritten public offering of 1.95 million shares at $6.00 per share, with gross proceeds of $11.7 million.
The offer price represents a steep discount of 18% from the last close price of $7.34 on Tuesday.
The underwriter has an option to purchase up to an additional 292,500 shares. Maxim Group LLC is acting as the sole book-running manager for the offering.
Tuesday, the company also announced announced it has submitted its initial investigational new drug application with the U.S. Food and Drug Administration for a Phase 2 study of Trappsol ® Cyclo™ for the treatment of early Alzheimer’s Disease (AD).
Cyclo will use the proceeds to proceed with Phase 3 trial for NPC with Trappsol Cyclo, fund further development of preclinical programs and general purposes.
Cyclo is a clinical-stage biotechnology company dedicated to developing life-changing medicines through science and innovation for patients and families suffering from disease. The Company’s Trappsol® Cyclo™, an orphan drug designated product in the United States and Europe, is the subject of four formal clinical trials for Niemann-Pick Disease Type C, a rare and fatal genetic disease.
CYTH shares dived $1.52, or 20.7%, at $5.82 first thing Wednesday.
