Cynata Therapeutics Secures $8.1 Million in Capital Raise

Highlights:

Cynata Therapeutics Limited (ASX: CYP) has raised $8.1 million through an institutional placement, following positive Phase 1 clinical trial results for CYP-006TK in Diabetic Foot Ulcers (DFU).
The funds will be used to advance clinical trials for CYP-006TK, CYP-001, and CYP-004, as well as to engage with regulatory agencies and progress potential licensing partnerships.
The capital raise was supported by both existing and new institutional investors, highlighting strong confidence in Cynata's ongoing clinical programs and their upcoming catalysts.
Cynata Therapeutics Limited (ASX: CYP) has successfully secured firm commitments for an $8.1 million capital raise through an institutional placement. This follows the positive results from its Phase 1 clinical trial of CYP-006TK in Diabetic Foot Ulcers (DFU). The placement will support the company’s ongoing clinical programs, strengthening its financial position as it progresses with multiple trials.

Details of the Capital Raise
At the time of writing, Cynata has raised $8 million through an institutional placement of 44,444,445 new shares priced at $0.18 per share. An additional $0.1 million will be raised through a conditional placement to directors. The placement has garnered strong support from both existing and new institutional investors, reflecting confidence in Cynata’s future prospects and clinical programs. The funds will be used to advance clinical trials for CYP-006TK, CYP-001, and CYP-004, as well as to engage with regulatory agencies, including the FDA.

Strategic Use of Funds

The proceeds from the capital raise will primarily be directed toward advancing Cynata’s clinical development programs, including those for graft-versus-host disease (GvHD), osteoarthritis, and kidney transplant. The funds will also support ongoing manufacturing activities and the initiation of potential licensing partnerships, which could further enhance Cynata’s growth prospects. The company’s Phase 1 DFU trial demonstrated positive efficacy results, which, along with the successful safety profile, strengthen the commercial potential of its Cymerus™ platform.

Looking Ahead
With the successful completion of the capital raise, Cynata is well-positioned to move forward with its clinical trials, including Phase 2 trials for GvHD and Phase 3 trials for osteoarthritis. The company’s strong cash position will ensure it has the resources to meet upcoming milestones and explore new opportunities.

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