KANSAS CITY - Cingulate Inc. (NASDAQ: CING), a biopharmaceutical company, has announced the appointment of three new directors to its board following recent financial activities including a follow-on offering and debt conversion. The new board members, Jay Roberts, Bryan Lawrence, and Jeff Ervin, bring extensive experience from the healthcare and pharmaceutical sectors.
This strategic move comes after Cingulate's successful completion of a $7.5 million follow-on offering in February 2024 and a $3.2 million sales under the company’s at-the-market offering facility in January 2024. Additionally, $3.3 million of outstanding debt was converted into equity at a premium to the market rate.
Chairman and CEO of Cingulate, Shane J. Schaffer, expressed confidence that the diverse expertise of the new directors would be instrumental as the company advances its clinical trials and explores business opportunities.
Roberts, with over three decades in the healthcare industry, is a Venture Partner for DigiLife Fund II and serves on the boards of several healthcare companies. Lawrence, a Doctor of Pharmacy, has a background in pharmacoeconomics and has held various roles at companies like Novartis (SIX:NOVN) and Janssen Pharmaceutica, as well as in healthcare consulting. Ervin, with over 20 years in executive roles, is currently the Chairman and CEO of IMAC Holdings and has a strong background in finance and healthcare investment.
Cingulate focuses on developing pharmaceutical products for frequently diagnosed conditions such as ADHD, utilizing its proprietary Precision Timed Release (PTR) drug delivery platform technology. Its lead candidate, CTx-1301, is a novel formulation of dexmethylphenidate, designed to provide an entire active-day duration of action for the treatment of ADHD.
The company's PTR technology aims to improve patient care by delivering medication at precise, predefined times. Cingulate is also exploring additional therapeutic areas where this technology could be applied, including anxiety disorders.
The information for this article is based on a press release statement from Cingulate Inc.
InvestingPro Insights
As Cingulate Inc. (NASDAQ: CING) welcomes new expertise to its board, the company's financial health and market performance remain focal points for investors. According to real-time data from InvestingPro, Cingulate Inc. currently holds a market capitalization of $4.45 million. The company's stock has experienced significant volatility, with a 1-week price total return of -13.18% and a 1-year price total return of a staggering -95.45%.
InvestingPro Tips highlight that Cingulate is quickly burning through cash, with a gross profit in the last twelve months as of Q3 2023 at -$12.44 million USD. Additionally, the company's short-term obligations exceed its liquid assets, which may raise concerns about its short-term financial stability. These insights are particularly relevant given Cingulate's recent financial activities and may impact investor sentiment.
Investors seeking a more comprehensive analysis can find additional InvestingPro Tips on https://www.investing.com/pro/CING, including the company's price volatility and its relationship with market movements. With 13 more InvestingPro Tips available, investors can gain deeper insights into Cingulate's financial health and market performance. For those interested in a yearly or biyearly Pro and Pro+ subscription, use coupon code PRONEWS24 to receive an additional 10% off.
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