Cyclacel Pharmaceuticals Exercises Warrants for $2.1M

Cyclacel Pharmaceuticals, Inc., a company engaged in developing innovative cancer treatments, has announced a new agreement regarding the exercise of certain existing warrants. These warrants, originally priced at $1.36 per share when issued in May 2024, have now been repriced to $0.415 per share. This agreement covers the purchase of a total of 4,968,945 shares of Cyclacel's common stock.

The shares to be issued upon the exercise of these warrants are registered under an effective registration statement on Form S-1. H.C. Wainwright & Co. serves as the exclusive placement agent for this offering.

To incentivize immediate exercise of these warrants, Cyclacel will issue new Series C and Series D unregistered warrants. Both series will allow the purchase of up to 9,937,890 shares each, at the same exercise price of $0.415 per share. The effective date for exercising these new warrants is contingent upon stockholder approval. Series C warrants will be valid for five and a half years from stockholder approval, while Series D warrants will be valid for eighteen months.

The transaction is expected to close around November 14, 2024, pending customary closing conditions. Cyclacel anticipates gross proceeds of approximately $2.1 million from this offering before subtracting placement agent fees and other expenses. The net proceeds will be used for working capital and other corporate purposes.

The new warrants and the shares of common stock they cover will be issued in a private placement, adhering to Section 4(a)(2) of the Securities Act of 1933 and Regulation D. These securities are not registered under the Securities Act or state securities laws and will not be offered or sold in the U.S. without appropriate registration or an applicable exemption. Cyclacel has committed to filing a registration statement with the SEC to cover the resale of the common stock to be issued upon exercise of these new warrants.

Cyclacel Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company that focuses on developing cancer medicines. Their research includes cell cycle, transcriptional regulation, and mitosis biology. Key products under development include fadraciclib, a CDK2/9 inhibitor, and plogosertib, a PLK1 inhibitor, targeting both solid tumors and blood cancers. Cyclacel aims to build a robust biopharmaceutical portfolio addressing oncology and hematology through its innovative drug candidates.