Cadrenal Therapeutics Announces $4.7 Million from Warrant Exercise

On November 1, 2024, Cadrenal Therapeutics, Inc., a biopharmaceutical firm based in Ponte Vedra, Florida, announced a significant development concerning its financial and strategic operations. The company, listed on Nasdaq under the ticker CVKD, is advancing the development of tecarfarin, a novel oral and reversible anticoagulant aimed at treating rare medical conditions. Cadrenal has entered into a definitive agreement to immediately exercise certain outstanding warrants. These warrants allow the purchase of up to 285,715 shares of common stock, originally issued in July 2023, at a reduced exercise price of $16.50 per share, down from the previous $26.25 per share.

The common stock shares issuable upon warrant exercise are registered under an effective post-effective amendment to the registration statement on Form S-1 on Form S-3, number 333-273384. The offering is anticipated to close around November 4, 2024, pending the fulfillment of customary closing conditions. H.C. Wainwright & Co. is serving as the exclusive placement agent for this offering.

In return for the immediate cash exercise of the warrants, Cadrenal Therapeutics will issue new unregistered Series A-1 and Series A-2 warrants. Each series will permit the purchase of up to 285,715 shares of common stock at $16.50 per share. These warrants will be immediately exercisable upon issuance, with the Series A-1 warrants valid for five years and the Series A-2 warrants valid for eighteen months from the effective date of the Resale Registration Statement.

The expected gross proceeds from the warrant exercise are approximately $4.7 million, before accounting for placement agent fees and other offering expenses. Cadrenal plans to allocate the net proceeds towards its pivotal Phase 3 trial and related partnering activities.

The new warrants are being offered through a private placement, utilizing an exemption from the registration requirements of the Securities Act of 1933. Consequently, these warrants and the shares of common stock issuable upon their exercise have not been registered and cannot be sold in the United States without SEC registration or an applicable exemption. Cadrenal has committed to filing a registration statement with the SEC to cover the resale of the shares issuable upon exercise of the new warrants.

Cadrenal Therapeutics focuses on developing tecarfarin, a new vitamin K antagonist (VKA). Tecarfarin aims to provide safer, superior chronic anticoagulation for patients with implanted cardiac devices or rare cardiovascular conditions. It is expected to reduce adverse events, such as strokes, heart attacks, bleeds, and deaths, compared to warfarin, the current common anticoagulant. Tecarfarin holds orphan drug designation for advanced heart failure patients with left ventricular assist devices (LVADs) and both orphan drug and fast-track status for end-stage kidney disease patients with atrial fibrillation. The company is planning pivotal clinical trials and pursuing clinical and commercial partnerships, with additional studies aimed at patients with mechanical heart valves facing anticoagulation challenges.