– Additional capital to accelerate clinical development of IW-6463 in two CNS indications and olinciguat for sickle cell disease –
– IW-6463 translational pharmacology and olinciguat STRONG Phase 2 top line clinical study results remain on track for late summer and late Q3 2020, respectively –CAMBRIDGE, Mass., July 30, 2020 (GLOBE NEWSWIRE) — Cyclerion Therapeutics, Inc. (Nasdaq: CYCN), a clinical-stage biopharmaceutical company developing treatments for serious and orphan diseases, today announced a direct private sale of $24 million of Cyclerion shares of common stock to Slate Path Capital LP and Pappas Capital.“We are pleased to have strengthened our balance sheet with this private placement with two highly respected investors. This first investment of new capital since our launch funding 16 months ago will accelerate the advancement of clinical studies in our two priority areas, central nervous system and sickle cell disease. We are developing IW-6463 in two diseases, Mitochondrial Encephalomyopathy, Lactic Acidosis and Stroke-like episodes (MELAS) and Alzheimer’s Disease with Vascular pathology (ADv) and preparing for rapid further development of olinciguat in sickle cell disease should the upcoming Phase 2 data support that investment. We believe that each of these programs has the potential to transform the lives of patients with very serious diseases and we look forward to the trial readouts in both programs over the next several months.” said Peter Hecht, Chief Executive Officer of Cyclerion.In the private placement, the Company sold 6,062,500 shares of common stock at a price of $4.00 per share. The private placement was completed on July 29, 2020.The securities 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 harnessing the power of sGC pharmacology to discover, develop and commercialize breakthrough treatments for serious and orphan diseases. Lead programs include its vascular-targeted olinciguat in Phase 2 development for sickle cell disease and IW-6463, a pioneering CNS-penetrant sGC stimulator in clinical development for Mitochondrial Encephalomyopathy, Lactic Acidosis and Stroke-like episodes (MELAS) and Alzheimer’s Disease with Vascular pathology (ADv)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 Statement
This 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, including statements about the anticipated timing of release of topline results of our clinical trials; the progression of our discovery programs into clinical development; and the business and operations of Cyclerion. 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. 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. Applicable risks and uncertainties include the risks listed under the heading “Risk Factors” and elsewhere in our 2019 Form 10-K filed on March 12, 2020, and in Cyclerion’s subsequent SEC filings, including the Form 10-Q filed on May 4, 2020, including without limitation that we will need to raise additional funding to further advance our product candidates, including IW-6463 and olinciguat, 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.Contact
Carlo Tanzi, Ph.D.
Kendall Investor Relations
ctanzi@kendallir.com
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